2. Notwithstanding paragraph 1, if the goods are subject to QVC requirement, the value of the accessories, spare parts, tools, and instructional or other information materials shall be taken into account as originating or non-originating materials, as the case may be, in calculating the QVC of the goods.
Article 3.11. Packaging Materials and Containers for Retail Sale
1. Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good, according to Rule 5 of the General rules for the interpretation of the Harmonized System, shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in any applicable product-specific rules.
2. If the good is subject to QVC requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the QVC of the good.
Article 3.12. Packing Materials and Containers for Shipment
Each Party shall provide that packing materials and containers for shipment are disregarded in determining whether a good is originating.
Article 3.13. Fungible Goods and Materials
1. In determining whether a good or material is originating any fungible good or material shall be distinguished by:
(a) physical segregation of the goods; or
(b) Any inventory management method, such as averaging, last-in-first-out or first-in-first-out, recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed or otherwise accepted by the Party in which the production is performed.
2. Each Party shall provide that an inventory management method selected under paragraph 1 for particular fungible goods or materials shall continue to be used for those fungible goods or materials throughout the fiscal year of the Party that selected the inventory management method.
Article 3.14. Sets of Goods
Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component goods are originating.
However, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of non-originating products does not exceed 15% of the Ex works price of the set.
Section B. Territoriality and Transit
Article 3.15. Transit and Transshipment
1. Each Party shall provide that an originating good retains its originating status if the good has been transported directly to the importing Party without passing through the territory of a non-Party and constituting one single consignment which is not to be split up.
2. Notwithstanding paragraph 1, each Party shall provide that an originating good retains its originating status if transited or is stored in a temporary warehousing through one or more intermediate non-Parties, provided that the good:
(a) remained under customs control in the territory of a non-Party; and
(b) has not undergone any operation there other than unloading, reloading, repackaging, labeling, split of bulk or consignment, or any operation required to keep them in good condition.
3. Evidence that the conditions set out in paragraphs 1 and 2 have been fulfilled shall be supplied, upon request, to the customs authorities of the importing Party by the submission of:
(a) transportation documents, such as airway bills, bills of lading, cargo manifests, or multimodal, or combined transportation documents, that certify transport from the country of origin to the importing Party;
(b) a certificate issued by the customs authorities of the non-Party where the goods were in transit, which contains an exact description of the goods, the date and place of loading and re-loading of the goods in that non-Party and the conditions under which the goods were placed; and/or
(c) a copy of the customs control documents of the non-Party country, where the transshipment or temporary storage of the goods is evidence and that it remained under customs control.
Article 3.16. Principle of Territoriality
1. The conditions for acquiring originating status set out in Article 3.4 must be fulfilled without interruption in the territory of one or both of the Parties.
2. Where originating goods exported from the territory of a Party to a non-Party, return to the exporting Party and are to be exported to the other Party, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:
(a) the returning goods are the same as those exported; and
(b) the non-Party has not undergone any operation beyond that necessary to preserve them in good condition while in that non-Party or while being exported.
Article 3.17. Exhibitions
1. Originating goods, sent for exhibition in a non-Party other than the territory of either Party and sold after the exhibition for importation in the territory of either Party shall benefit on importation from the provisions of this Agreement provided it is shown to the satisfaction of the customs authorities that:
(a) an exporter has consigned these goods from the territory of either Party to the non-Party in which the exhibition is held and has exhibited them there;
(b) the goods have been sold or otherwise disposed of by that exporter to a person in the territory of either Party;
(c) the goods have been consigned during the exhibition or immediately thereafter in the non-Party to which they were sent for exhibition; and
(d) the goods have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.
2. A proof of origin must be issued or made out in accordance with the provisions of this Chapter and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which the products have been exhibited may be required.
3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair, or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign goods, and during which the goods, remain under customs control.
Article 3.18. Importation by Installments
Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonized System are imported by installments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first installment.
Article 3.19. Free Zones
1. Both Parties shall take all necessary steps to ensure that originating goods traded under cover of a proof of origin which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration.
2. Notwithstanding paragraph 1, when products originating in the territory of either Party enter into a free zone situated in their territory under cover of a proof of origin undergo treatment or processing and to be exported to the territory of the other Party, a new proof of origin shall be issued, if the treatment or processing undergone is in conformity with the provisions of this Chapter.
3. Goods produced or manufactured in a free zone situated within a Party, shall be considered as originating goods in that Party when exported to the other Party provided that the treatment or processing is in conformity with the provisions of this chapter.
Section C. Certification Provisions
Article 3.20. Proof of Origin
1. Goods originating in a Party shall, on importation into the other Party, benefit from preferential tariff treatment under this Agreement on the basis of a Proof of Origin which shall be completed in the English language.
2. Any of the following shall be considered as a Proof of Origin:
(a) a paper format (3) certificate of origin in electronic or hard copy issued by a competent authority referred to in Article 3.21;
(b) a fully digitised Certificate of Origin (E-Certificate) issued by a competent authority and exchanged by a mutually developed electronic system as per Article 3.22; and
(c) an origin declaration made out by an approved exporter referred to in Article 3.23.
3. Each Party shall provide that a proof of origin remains valid for one year from the date on which it is issued.
Article 3.21. Certificate of Origin In Paper Format
1. A Certificate of Origin in paper format shall:
(a) be in the Form set out in Annex 3B (Certificate of Origin); the certificate of origin must be properly completed in accordance with its notes; and
(b) may cover one or more goods under one consignment.
2. Each Certificate of Origin shall bear a unique specific number given by the competent authority.
3. A Certificate of Origin shall bear an authorised signature and official seal of the competent authority. The signature and official seal may be applied electronically.
4. In case the official seal is applied electronically, a verification of authenticity, such as QR code or secured website, should be included in accordance with the laws and regulations of the exporting Party for the certificate to be deemed as an original copy.
5. The names and seals of the competent authorities for issuing certificates of origin as well as the record of the names and signatures of the officials accredited for that purpose, shall be notified by each Party.
6. Before conducting a Verification of Proofs of Origin in accordance with the provisions of Article 3.31, the competent authority of the importing Party may request information on the veracity and authenticity of the Certificate of Origin from the competent authority of the exporting Party.
Article 3.22. Electronic Data Origin Exchange System
For the purposes of Article 3.20.2 (b) the Parties shall endeavour to develop an electronic system for origin information exchange to ensure the effective and efficient implementation of this Chapter, particularly on the transmission of electronic Certificates of Origin.
Article 3.23. Origin Declaration
1. For the purposes of Article 3.20.2 (c) the Parties shall, within one year from the date of entry into force of this Agreement, implement provisions allowing each competent authority to recognize an origin declaration made by an approved exporter.
2. The customs authority or the competent authority of the exporting Party may authorise any exporter (hereinafter referred to as "approved exporter"), who exports goods under this Agreement, to make out Origin Declarations, a specimen of which appears in Annex 3C (Origin Declaration Pursuant to Article 3.23), irrespective of the value of the goods concerned, in accordance with appropriate conditions in the respective law of the exporting Party. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities or the competent authority, all guarantees necessary to verify the originating status of the goods as well as the fulfilment of the other requirements of this Chapter.
3. The customs authorities or the competent authority of the exporting party may grant the status of approved exporter, subject to any conditions which they consider appropriate.
4. The customs authority or the competent authority of the exporting party shall share with the customs authority of the importing party the list of approved exporters and periodically update it. The information exchanged under this paragraph is for the exclusive use of the customs authorities of the Parties.
5. An Origin Declaration shall be made out by the approved exporter by typing, stamping, or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex 3C (Origin Declaration Pursuant to Article 3.23). If the declaration is hand-written, it shall be written in permanent ink in legible printed characters.
6. The Origin Declaration shall bear the original signature of the exporter in manuscript. However, an approved exporter shall not be required to sign such declarations provided that the exporter gives the customs authorities of the exporting Party a written undertaking that s/he accepts full responsibility for any invoice declaration which identifies him/her as if it had been signed in manuscript by him/her.
7. The approved exporter making out an Origin Declaration shall be prepared to submit at any time, at the request of the customs authority of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfilment of the other requirements of this Chapter.
Article 3.24. Application for Certificate of Origin
1. Certificates of Origin shall be issued by the competent authority of the exporting Party, either upon an electronic application or an application in paper form, having been made by the exporter or under the exporter's responsibility by his or her authorised representative, in accordance with the domestic regulations of the exporting Party.
2. The exporter applying for the issuance of a Certificate of Origin shall be prepared to submit at any time, at the request of the competent authority of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfilment of the other requirements of this Chapter.
3. Certificates of Origin shall be issued if the goods to be exported can be considered as products originating in the exporting Party in accordance with Article 3.2.
Article 3.25. Examination of Application for a Certificate of Origin
The competent authority shall, to the best of its competence and ability, carry out proper examination in accordance with the laws and regulations of the exporting Party upon each application for the Certificate of Origin to ensure that:
(a) the application and the Certificate of Origin are duly completed and signed by the exporter of the good or its authorised representative;
(b) the origin of the good is in conformity with the provisions of this Chapter;
(c) the other statements on the Certificate of Origin correspond to the appropriate supporting documentary evidence submitted;
(d) HS code, description, gross weight, or other quantity and value conform to the good to be exported; and
(e) multiple items declared on the same Certificate of Origin shall be allowed, provided that each item must qualify separately in its own right.
Article 3.26. Treatment of Erroneous Declaration In the Certificate of Origin
Neither erasures nor superimposition shall be allowed on the Certificate of Origin. Any alterations shall be made by issuing a new Certificate of Origin to replace the erroneous one, indicating the number of the Certificate of Origin that is corrected in the appropriate field of the newly issued Certificate of Origin as detailed in Annex 3B (List of Product Specific Rules (PSRs)).
Article 3.27. Certificates of Origin Issued Retrospectively
1. A Certificate of Origin may exceptionally be issued after shipment of the products to which it relates if:
(a) it was not issued at the time of shipment because of errors or involuntary omissions or special circumstances such as fortuitous event or force majeure; or
(b) it is demonstrated to the satisfaction of the competent authority that a Certificate of Origin was issued but was not accepted at importation for technical reasons.
2. For the implementation of paragraph 1, the exporter must indicate in his/her application the place and date of exportation of the products to which the Certificate of Origin relates and state the reasons for his/her request.
3. The competent authority of the exporting Party may issue a Certificate of Origin retrospectively only after verifying that the information supplied in the exporter?s application agrees with that in the corresponding file.
4. It shall be indicated on the Certificates of Origin issued in accordance with paragraph 2 that they were "ISSUED RETROSPECTIVELY" in the appropriate field as detailed in Annex 3B (Certificate of Origin).
5. The provisions of this Article shall be applied to goods which comply with the provisions of this Agreement, and which on the date of its entry into force, are either in transit or are in the territory of the Parties in temporary storage under customs control. This shall be subject to the submission to the customs authorities of the importing Party, within six months from the said date, of a Certificate of Origin issued retrospectively by the competent authority of the exporting Party together with documents, showing that the goods have been transported directly in accordance with the provisions of Article 3.15.
Article 3.28. Presentation of the Certificate of Origin
For the purposes of claiming preferential tariff treatment, the importer or its authorised representative shall submit to the customs authority of the importing Party, at the time of filing import declaration, a Certificate of Origin including supporting documentation and other documents as required, in accordance with the laws and regulations of the importing Party.
Article 3.29. Treatment of Minor Discrepancies
1. The discovery of minor discrepancies 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 goods shall not ipso facto invalidate the Certificate of Origin, if it does in fact correspond to the goods submitted.
2. Obvious formal errors, such as typing errors, on a proof of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.
Article 3.30. Record Keeping Requirement
1. Each Party shall provide that the exporter or the producer in its territory that has provided a Certificate of Origin shall maintain in its territory, for five years after the date on which the proof of origin was issued or for such longer period as the exporting Party may specify, all records necessary to demonstrate that the good for which the producer or exporter provided the Certificate of Origin was an originating good, which may consist of, inter alia, the following:
(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;
(b) documents proving the originating status of materials used, issued, or made out in a Party where these documents are used, as provided for in its law;
(c) documents proving the working or processing of materials in a Party, issued, or made out in a Party where these documents are used, as provided for in its law; and
(d) proof of origin proving the originating status of materials used, completed in a Party.
2. Each Party shall provide that the importer claiming preferential tariff treatment for a good imported into the Party's territory shall maintain, for five years after the date of importation of the good or for such longer period as the Party may specify, such documentation, including a copy of the certificate of origin, as the Party may require relating to the importation of the good.
3. Each Party shall provide that the importer, exporter, or producer may choose to maintain the records in any medium that allows for prompt retrieval, including but not limited to, digital, electronic, optical, magnetic, or written form.
Article 3.31. Verification of Proofs of Origin
1. In order to ensure the proper application of this Chapter, the Parties shall assist each other, through their respective competent authorities, to verify the authenticity of the proofs of origin and the correctness of the information given in these documents.
2. The customs authority or the competent authority of the importing Party may request a verification at random 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 goods in question by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer;
(c) requests to the customs authority or competent authority of the exporting Party for assistance in verifying the origin of the good;
(d) verification visits to the premises of an exporter or a producer in the territory of the other Party, along with the customs authority of the exporting Party to observe the facilities and the production processes of the good and to review the records referring to origin, including accounting files. Officials of the customs authority or competent authority of the exporting Party should come along as observers to the verification visit when requested by the importing Party; or
(e) any other procedures to which the Parties may agree.
3. For purposes of paragraph 2(a) and 2(b):
(a) the written request for additional information made by the importing Party will indicate that the time period the importer, exporter, or producer has to provide the information and documentation required will be 30 days from the date of the receipt of the written request or for such longer period as the Parties may agree; and
(b) where an exporter or producer fails to provide the information and documentation required within the period referred to in subparagraph (a), the importing Party may deny preferential tariff treatment to the good in question after providing at least a 30-day written notice to the importer, exporter, or producer to provide written comments or additional information that will be taken into account prior to completing the verification.
4. For purposes of paragraph 2(c):
(a) the customs authority of the importing Party shall provide the customs authority or competent authority of the exporting Party with:
(i) the reasons why such assistance for verification is requested;
(ii) the Certificate of Origin of the good, or a copy thereof; and
(iii) any information and documents as may be necessary for the purpose of such request;
(b) the customs authority or competent authority of the exporting Party shall provide the customs authority of the importing Party with a written statement in English, including findings and facts, and any supporting documents made available by the exporter or producer within 30 days of the date of request. Nonetheless, the exporting Party may issue the above-mentioned written statement both in English and in the language required by its law. This statement shall indicate clearly whether the documents are authentic and whether the goods concerned can be considered an originating good and fulfill the other requirements of this Chapter. If the good can be considered an originating good, the statement shall include a detailed explanation of how the good obtained the originating status; and
(c) in the cases where the customs authority/competent authority of the exporting Party does not provide the written statement within 150 days of the date of the request or where the written statement does not contain sufficient information, the importing Party may deny the preferential tariff treatment to the relevant good.
5. For purposes of paragraph 2(d):
(a) If the customs authority of the importing Party is not satisfied with the outcome of the request as per paragraphs 2(b) or 2(c), it may, under exceptional circumstances, for justifiable reasons request a verification visit to the exporting Party;
(b) prior to conducting a verification visit, the importing Party shall, through its customs authority:
(i) deliver a written notification of its intention to conduct the visit to the exporter or producer whose premises are to be visited, the coverage of the proposed verification visit, including reference to the good subject to the verification and the customs authority or competent authority of the other Party; and
(ii) obtain the written consent of the exporter or producer whose premises are to be visited;
(c) where an exporter or producer has not given its written consent to a proposed verification visit within 30 days of the receipt of notification pursuant to where an exporter or producer has not given its written consent to a proposed verification visit within 30 days of the receipt of notification pursuant to subparagraph(a), the notifying Party may deny preferential tariff treatment to the relevant good;
(d) upon receipt of notification pursuant to subparagraph(a), such an exporter or producer may, within 15 days of receiving the notification, have one opportunity to request to the Party conducting the verification for a postponement of the proposed verification visit, for a period not exceeding 60 days. This extension shall be notified to the customs authority of the importing and exporting Parties; and
(e) after the conclusion of a verification visit, the customs authority or competent authority of the importing Party, shall provide the exporter or producer whose good was verified, with minutes of the visit. The exporter or producer subject to the visit may sign such minutes. If the exporter or the producer refuses to sign, the fact shall be stated on record, without affecting the validity of the procedure.
6. The customs authority or competent authority of the importing Party shall provide the exporter or producer or importer whose good is the subject of the verification with a written determination of whether the good qualifies as an originating good, including findings of fact and the legal basis for the determination.
7. During the verification process, the customs authority or competent authority of 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 customs authority or competent authority of 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.
8. The verification process, including the determination and the verification visit to the premises of an exporter or a producer in the territory of the other Party, shall be carried out and its results communicated to the competent authority of the other Party within a maximum period of 12 months from the first day the initial verification process was conducted.
9. For purposes of paragraphs 2(b) and 2(c), all the information requested by the customs authority of the importing Party and responded by the customs authority of the exporting Party shall be communicated in English. Nonetheless, the customs authority of each Party may issue the above-mentioned information both in English and in the language required by its law.
Article 3.32. Third Party Invoicing
1. The customs authority in the importing Party shall not reject a certificate of origin only for the reason that the invoice was not issued by the exporter or producer of a good provided that the good meets the requirements in this Chapter.
2. The exporter of the goods shall indicate ?third party invoicing? and such information, as the name and country of the company issuing the invoice, shall appear in the appropriate field as detailed in Annex 3B (Certificate of Origin).
Article 3.33. Denial of Preferential Tariff Treatment
1. Except as otherwise provided in this Chapter, the customs authority in coordination, where applicable, with the competent authority of the importing Party may deny a claim for preferential tariff treatment or recover unpaid duties, in accordance with its laws and regulations, where:
(a) the good does not meet the requirements of this Chapter; or
(b) the importer, exporter, or producer of the good fails or has failed to comply with any of the relevant requirements of this Chapter for obtaining preferential tariff treatment.
2. If the customs authority of the importing Party denies a claim for preferential tariff treatment, it shall provide the decision in writing to the importer that includes the reasons for the decision.
3. The customs authority of the importing Party, where applicable in coordination with the competent authority, may determine that a good does not qualify as an originating good and may deny preferential tariff treatment where:
(a) the customs authority of the importing Party has not received sufficient information to determine that the good is originating;
(b) the exporter, producer, or the customs authority of the exporting Party fails to respond to a written request for information in accordance with Article 3.31; or
(c) the request for a verification visit in accordance with Article 3.31 is refused.
Article 3.34. Contact Points
Each Party shall, within 30 days of the date of entry into force of this Agreement for that Party, designate one or more contact points within its competent authority for the implementation of this Chapter and notify the other Party of the contact details of that contact point or those contact points. Each Party shall promptly notify the other Party of any change to those contact details.