(a) goods wholly obtained or produced in the Party within the meaning of Article 3.4 (Wholly Obtained Goods);
(b) goods produced in a Party exclusively from originating materials from Israel or Viet Nam, and meet all other applicable requirements of this Chapter; or
(c) goods produced entirely in a Party incorporating materials which have not been obtained there, provided that such materials have undergone sufficient working or processing in a Party within the meaning of Article 3.5 (Sufficiently Worked or Processed Goods).
Article 3.3. Cumulation of Origin
1. Bilateral Cumulation
Notwithstanding Article 3.2 (Originating Goods), goods originating in one of the Parties shall be considered as goods originating in the other Party and it shall not be necessary that such goods had undergone working or processing.
2. The Parties may agree to review this Article within the framework of the Joint Committee with a view to providing for other forms of cumulation for the purposes of qualifying goods as originating goods under this Agreement.
Article 3.4. Wholly Obtained Goods
The following shall be considered as wholly produced or obtained in Israel or in Viet Nam:
(a) minerals extracted from the soil or subsoil of any of the Parties, including its territorial seas, continental shelf or exclusive economic zone;
(b) plants and vegetable goods grown, harvested, picked or gathered there;
(c) live animals born and raised there;
(d) goods obtained from aquaculture there;
(e) goods from live animals as in subparagraph (c);
(f) goods obtained by hunting, trapping, collecting, capturing and fishing there, including fishing in its territorial sea continental shelf or in the exclusive economic zone;
(g) used articles collected there fit only for the recovery of raw materials including used tyres fit only for retreading;
(h) waste and scrap resulting from utilization, consumption or manufacturing operations conducted there;
(i) goods of sea fishing, and other marine goods taken from the waters in the high seas, only if done by any vessel registered or recorded with a Party and entitled to fly the flag of that Party in accordance with its domestic law;
(j) goods taken or extracted from the waters, seabed or subsoil outside the territorial sea of a Party, provided that the Party has rights to exploit such waters, seabed or subsoil;
(k) goods produced on board any factory ship registered or recorded with a Party and entitled to fly the flag of that Party, exclusively from the goods referred to in subparagraphs (i) and (j); and
(l) goods produced in any of the Parties exclusively, from the goods specified in subparagraphs (a) to (k).
Article 3.5. Sufficiently Worked or Processed Goods
For the purposes of Article 3.2(c), goods which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in the list in Annex 3A (Product Specific Rules of Origin) are fulfilled. (1)
Those conditions indicate, for all goods covered by this Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. Accordingly, it follows that if non-originating materials undergo sufficient working or processing, which results in an originating good, and when that good is used in the subsequent manufacture of another good, no account shall be taken of the non-originating material contained therein.
Article 3,6. De Minimis
1. A good that does not undergo a change in tariff classification pursuant to Article 3.5.1 and Annex 3A (Product Specific Rules of Origin) shall be considered as originating if:
(a) the value of all non-originating materials used in its production that do not undergo the required change in tariff classification does not exceed 10 percent of the ex-works price of the good or for Chapters 15 through 24 of the Harmonized System 10 percent of the weight of the good;
(b) the good meets all other applicable criteria set forth in this Chapter for qualifying as an originating good; and
(c) any of the percentages given in Annex 3A (Product Specific Rules of Origin) for the maximum value of non-originating materials are not exceeded through the application of this paragraph.
2. A good provided for in Chapters 50 through 63 of the Harmonized System that is not an originating good, because certain fibres or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in Annex 3A (Product Specific Rules of Origin), shall nonetheless be considered as originating if the total weight of all such fibres or yarns in that component is not more than 10 percent of the total weight of that component.
Article 3.7. Insufficient Working or Processing
1. The following operations shall be considered as insufficient working or processing to confer the status of originating goods, whether or not the requirements of Article 3.5 (Sufficiently Worked or Processed Goods) are satisfied:
(a) preserving operations to ensure that the goods remain in good condition during transport and storage;
(b) simple (2) changing of packaging and breaking-up and assembly of packages;
(c) washing, cleaning, removal of dust, oxide, oil, paint or other coverings;
(d) simple (3) painting and polishing operations;
(e) husking, partial or total bleaching, polishing, and glazing of cereals and rice;
(f) ironing or pressing of textiles;
(g) operations to colour sugar or form sugar lumps; partial or total milling of crystal sugar;
(h) peeling, stoning and shelling, of fruits, nuts and vegetables;
(i) sharpening, simple (4) grinding or simple cutting;
(j) sifting, screening, sorting, classifying, grading and matching (including the making-up of sets of articles);
(k) affixing or printing marks, labels, logos and other like distinguishing signs on goods or their packaging;
(l) dilution in water or other substances, providing that the characteristics of the goods remain unchanged;
(m) simple (5) placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(n) simple (6) assembly of parts of articles to constitute a complete article or disassembly of goods into parts;
(o) simple (7) mixing of goods, whether or not of different kinds;
(p) a combination of two or more of the above operations; and
(q) slaughter of animals.
Article 3.8. Unit of Qualification
1. The unit of qualification for the application of the provisions of this Chapter shall be the particular product which is considered to be the basic unit when determining classification using the nomenclature of the Harmonized System.
It follows that:
(a) When a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single subheading, the whole constitutes the unit of qualification; and
(b) When a consignment consists of a number of identical goods classified under the same subheading of the Harmonized System, each product must be taken individually when applying the provisions of this Chapter.
2. Where, under General Rule 5 of the Harmonized System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.
Article 3.9. Accounting Segregation
1. For the purpose of establishing if a product is originating when originating and non-originating fungible materials that are mixed or physically combined, are utilized in its manufacture, the origin of such materials can be determined by any of the inventory management methods applicable in the Party.
2. Where considerable cost or material difficulties arise in keeping separate stocks of originating and non-originating materials which are identical and interchangeable, the Customs Authorities may authorize the so-called "accounting segregation" method to be used for managing such stocks.
3. This method must be able to ensure that the number of goods obtained which could be considered as "originating" is the same as that which would have been obtained if there had been physical segregation of the stocks.
4. This method is recorded and applied on the basis of the general accounting principles applicable in the Party where the product was manufactured.
5. The beneficiary of this facilitation may issue or apply for proofs of origin, as the case may be, for the quantity of goods which may be considered as originating. At the request of the Competent Authorities, the beneficiary shall provide a statement of how the quantities have been managed.
Article 3.10. Accessories, Spare Parts and Tools
Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.
Article 3.11. Sets
Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component goods are originating. Nevertheless, when a set is composed of originating and non-originating goods, the set as a whole shall be regarded as originating, provided that the CIF value of the non-originating goods does not exceed 15 percent of the ex-works price of the set.
Article 3.12. Neutral Elements
In order to determine whether a good originates, it shall not be necessary to determine the origin of the following which might be used in its manufacture:
(a) energy and fuel;
(b) plant and equipment, including goods to be used for their maintenance;
(c) machines, tools, dyes and moulds; spare parts and materials used in the maintenance of equipment and buildings; lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; gloves, glasses, footwear, clothing, safety equipment and supplies; catalysts and solvents; equipment, devices and supplies used for testing or inspecting the product; and
(d) other goods which do not enter into the final composition of the product.
Article 3.13. Principle of Territoriality
1. Except as provided for in Article 3.3 (Cumulation of Origin) and paragraph 3 of this Article, the conditions for acquiring originating status set out in Article 3.5 (Sufficiently Worked or Processed Goods), of this Chapter must be fulfilled without interruption in Israel or in Viet Nam.
2. Where originating goods exported from Israel or from Viet Nam to a non-party, are returned to the exporting 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) they have not undergone any operation beyond that necessary to preserve them in good condition while in that non-party or while being exported.
3. The Parties may agree to review this Article within the framework of the Joint Committee.
Article 3.14. Direct Transport
1. The preferential treatment provided under this Agreement applies only to goods, satisfying the requirements of this Chapter, which are transported directly between Israel and Viet Nam.
2. However, goods constituting one single consignment may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, under the surveillance of the Customs Authorities therein, provided that:
(a) they are not intended for trade, consumption, use or employment in the non-party where the goods were in transit; and
(b) they do not undergo operations other than unloading, reloading, splitting of a consignment or any operation designed to preserve them in good condition.
3. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the Customs Authorities of the importing Party by the production of:
(a) any single through transport documents, that meet international standards and that proves that the goods were directly transported from the exporting Party through the non-party where the goods are in transit to the importing Party; or
(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; or
(c) in the absence of any of the above documents, any other documents that will prove the direct shipment.
4. Goods exported from one of the Parties will retain their originating status when re-imported into that Party.
Article 3.15. Exhibitions
1. Originating goods, sent for exhibition in a non-party other than Israel or Viet Nam and sold after the exhibition for importation in Israel or in Viet Nam 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 Israel or Viet Nam 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 Israel or in Viet Nam;
(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.
3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized 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 3.16. Proof of Origin
1. Goods originating in a Party shall, on importation into the other Party, benefit from preferential tariff treatment under this Agreement upon submission of a Proof of Origin in accordance with the domestic law of the importing Party, which shall be completed in English.
2. Any of the following shall be considered a Proof of Origin:
(a) a certificate of origin in paper or electronic format issued by a Competent Authority as per the specimen in Annex 3B (Certificate of Origin);
(b) an electronic certificate of origin issued by a Competent Authority in accordance with Article 3.17 (Electronic Origin Data Exchange);
(c) a declaration subsequently referred to as the "Origin Declaration", in the cases specified in Article 3.22 (Conditions for Making out an Origin Declaration), which describes the goods concerned in sufficient detail to enable them to be identified.
3. For the purposes of this Chapter, “paper format” means a Certificate of Origin manually or electronically signed, stamped, and issued in the exporting Party directly from the Competent Authority's system and printed by the Competent Authority, producer or exporter, or his authorized representative.
4. Notwithstanding paragraph 1, originating goods within the meaning of this Chapter shall, in the cases specified in Article 3.26 (Exemptions from Proofs of Origin), benefit from this Agreement without it being necessary to submit any of the documents referred to above.
Article 3.17. Electronic Origin Data Exchange
1. For the purposes of Article 3.16.2(b), the Sub-Committee on Customs and Rules of Origin shall endeavour to develop an electronic system for the exchange of electronic certificates of origin and origin information to ensure the effective and efficient implementation of this Chapter.
2. For the purposes of this Chapter, “an electronic certificate of origin” means a Certificate of Origin that is transmitted electronically.
Article 3.18. Procedures for the Issuance of Certificates of Origin
1. Certificates of Origin shall be issued by the Competent Authority of the exporting Party, having been made by the exporter or under the exporter's responsibility by his authorized 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 goods originating in the exporting Party in accordance with Article 3.2 (Originating Goods).
4. The Competent Authority shall take any steps necessary to verify the originating status of the goods and the fulfilment of the other requirements of this Chapter. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's books or any other check considered appropriate.
5. Each Certificate of Origin will be assigned a specific number by the Competent Authority.
6. Certificates of Origin shall be issued by the Competent Authority and made available to the exporter as soon as the actual exportation has been effected or ensured, or within three working days after the said date subject to each Party’s domestic law.
Article 3.19. Certificates of Origin Issued Retrospectively
1. Notwithstanding Article 3.18(6), a Certificate of Origin may exceptionally be issued after the exportation of the goods to which it relates if it was not issued at the time of exportation or within three working days as mentioned in Article 3.18(6), because of errors or involuntary omissions or special circumstances or it is demonstrated to the satisfaction of the Competent Authority that the Certificate was issued but was not accepted at importation for technical reasons.
2. For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the goods to which the Certificate of Origin relates, and state the reasons for his request.
3. The Competent Authority may issue a Certificate of Origin retrospectively only after verifying that the information supplied in the exporter's application conforms with that in the corresponding file.
4. It shall be indicated on the Certificates of Origin issued in accordance with this Article that they were issued retrospectively in the appropriate field as detailed in Annex 3B (Certificate of Origin). The Certificates of Origin issued retrospectively, which shall bear the date of issue retrospectively, shall take effect from that date.
5. The provisions of this Article may be applied to goods which comply with the provisions of this Agreement, including this Chapter, and which on the date of entry into force of this Chapter are either in transit or are in Israel or in Viet Nam in temporary storage under customs control, subject to the submission to the Customs Authorities of the importing Party, within six months of the said date, of a Certificate of Origin issued retrospectively by the Competent Authority of the exporting Party together with the documents showing that the goods have been transported directly in accordance with the provisions of Article 3.14 (Direct Transport).
Article 3.20. Duplicate Certificates of Origin
1. In the event of theft, loss or destruction of a Certificate of Origin in paper format, the exporter may apply to the Competent Authority that issued it for a duplicate made out on the basis of the export documents in their possession.
2. It shall be indicated in the appropriate field on the Certificates of Origin issued in accordance with this Article that they are duplicates, as detailed in Annex 3B (Certificate of Origin).
3. The duplicate, which shall bear the date of issue of the original Certificate of Origin, shall take effect from that date.
Article 3.21. Approved Exporter
1. The Competent Authorities of the exporting Party may authorise any exporter, (hereinafter “approved exporter”), who exports goods under this Agreement, to make out Origin Declarations, a specimen of which appears in Annex 3C (Approved Exporter Declaration Pursuant to Article 3.21), irrespective of the value of the goods concerned, in accordance with appropriate conditions in the respective law of the exporting Party. An exporter seeking a such authorisation must offer to the satisfaction of the Competent Authorities all guarantees necessary to verify the originating status of the goods as well as the fulfilment of the other requirements of this Chapter.
2. The Competent Authorities may grant the status of an approved exporter, subject to any conditions which they consider appropriate as specified in each Party’s domestic law.
3. The Competent Authorities shall grant to the approved exporter an authorisation number which shall appear on the Origin Declaration. The text of the Origin Declaration appears in Annex 3C (Approved Exporter Declaration Pursuant to Article 3.21).
4. The Competent Authorities shall monitor the use of the authorisation by the approved exporter.
5. The Competent Authorities may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, no longer fulfils the conditions referred to in paragraph 2 or otherwise makes incorrect use of the authorisation.
Article 3.22. Conditions for Making Out an Origin Declaration
1. An Origin Declaration as referred to in Article 3.16 (2)(c) may be made out by an approved exporter within the meaning of Article 3.21 (Approved Exporter) or by any exporter where the value of the originating good does not exceed 1000 dollars. The text of the Origin Declaration appears in Annex 3D (Origin Declaration Pursuant to Article 3.21).
2. The exporter making out an Origin Declaration shall be prepared to submit at any time, upon 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. An Origin Declaration shall be made out by the 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 (Approved Exporter Declaration Pursuant to Article 3.21) and Annex 3D (Origin Declaration Pursuant to Article 3.21). If the declaration is hand-written, it shall be written in ink in block letters.
Article 3.23. Validity of Proofs of Origin
1. Proofs of origin shall be valid for twelve months from the date of issue in the exporting Party and must be submitted within that period to the Customs Authorities of the importing Party.
2. Proofs of origin which are submitted to the Customs Authorities of the importing Party after the final date for presentation specified in paragraph 1 may be accepted for the purposes of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.
3. In other cases of belated presentation, the Customs Authorities of the importing Party may accept the proofs of origin where the goods have been imported before the said final date.
Article 3.24. Submission of Proofs of Origin
Proofs of origin shall be submitted to the Customs Authorities of the importing Party in accordance with its domestic law, including the procedures applicable to that Party.
Article 3.25. Importation by Instalments
Where, upon request of the importer and on the conditions laid down by the Customs Authorities of the importing Party, dismantled or non-assembled goods within the meaning of General Rule 2(a) of the Harmonized System are imported by instalments, a single proof of origin for such goods shall be submitted to the Customs Authorities upon the importation of the first instalment.
Article 3.26. Exemptions from Proofs of Origin
1. Goods sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating goods without requiring the submission of a proof of origin, provided that such goods are not imported by way of trade and have been declared as meeting the requirements of this Chapter and where there is no doubt as to the veracity of such a declaration. In the case of goods sent by post, this declaration can be made on the customs declaration or on a sheet of paper annexed to that document.