2. Where the good referred to in paragraph 1 is, in addition, subject to a regional value content requirement, the value of those non-originating materials shall be taken into account in calculating the regional value content of the good and the good shall satisfy the other applicable requirements of this Chapter.
3. Paragraphs 1 and 2 do not apply to:
a) goods covered by Chapters 50 to 63 of the Harmonized System; and
b) a non-originating material that is used in the production of goods falling within Chapters 01 through 27 of the Harmonized System, unless the non-originating material falls within a subheading other than that of the good for which origin is being determined under this Article. However, de minimis may be applied when using non-originating materials of the same subheading, provided that the materials are different from the final good.
4. A good provided for in Chapters 50 through 63 of the Harmonized System produced in the territory of one or both of the Parties shall be considered as originating if the weight of all non-originating fibers or yarns of the component that determines the tariff classification of the good, which do not meet the applicable tariff classification change requirement, does not exceed 10 percent of the total weight of the good.
Article 4.10. Expendable Goods and Materials
1. For purposes of establishing whether a good is originating, when originating and non-originating fungible materials that are physically mixed or combined are used in its production, the origin of the materials may be determined by any inventory management method recognized in the Generally Accepted Accounting Principles of the Party where the production takes place and set forth in its national legislation.
2. When originating and non-originating fungible goods are physically mixed or combined, the origin of the good may be determined by any inventory management method recognized in the Generally Accepted Accounting Principles of the Party where the production takes place and set out in its domestic legislation. A good to be exported to the territory of the other Party, whose origin has been determined in accordance with this Article, shall not undergo any production process or any other operation in the territory of the Party in which they were physically mixed or combined, other than loading, unloading or any other operation necessary to maintain the goods in good condition or to transport them to the territory of the other Party.
3. The inventory management method selected pursuant to this Article for a particular commodity or consumable shall continue to be used for that commodity or consumable throughout the taxable year of the person who selected the inventory management method.
Article 4.11. Accessories, Spare Parts and Tools
1. The origin of accessories, spare parts and tools delivered with the good shall be disregarded in determining whether all non-originating materials used in the production of the good comply with the applicable change in tariff classification, provided that:
a) accessories, spare or replacement parts and tools are not invoiced separately from the merchandise, regardless of whether they are itemized or detailed separately on the invoice itself; and
b) the quantity and value of such accessories, spare or replacement parts and tools are those customary for the goods.
2. When the good is subject to a regional value content requirement, the value of accessories, spare or replacement parts and tools shall be taken into account as originating or non-originating materials, as the case may be.
3. When spare parts and tools are self-manufactured materials, the producer may choose to designate such materials as intermediate materials.
Article 4.12. Sets or Assortments
1. Sets or assortments that are classified according to Rule 3 of the General Rules for the Interpretation of the Harmonized System, as well as goods whose description, according to the nomenclature of the Harmonized System, is specifically that of a set or assortment, shall qualify as originating, provided that each of the goods contained in the set or assortment complies with the rule of origin that has been established for each of those goods and the other applicable provisions of this Chapter.
2. Notwithstanding the provisions of paragraph 1, a set or assortment of goods shall be considered originating if the transaction value of all non-originating goods used in the formation of the set or assortment, adjusted on a CIF basis, does not exceed 10 percent of the transaction value of the set or assortment, adjusted on an FOB basis.
3. The provisions of this Article shall prevail over the other provisions set forth in this Chapter.
Article 4.13. Retail Containers and Packaging Materials
1. The origin of the containers and packing materials in which a good is presented for retail sale when they are classified together with the good they contain, in accordance with Rule 5 of the General Rules for the Interpretation of the Harmonized System:
a) shall not be taken into account when the good is subject to a change in tariff classification requirement, when the good is wholly obtained or wholly produced, or when the good is produced exclusively from originating materials; and
b) shall be taken into account as originating or non-originating, as the case may be, if the merchandise is subject to a regional value content requirement, in order to make the corresponding calculation.
2. When packaging materials and containers correspond to self-manufactured materials, the producer may designate these materials as intermediate materials. Article 4.14: Containers and packing materials for shipment containers and packing materials in which a good is packed or packaged exclusively for transport shall not be taken into account in determining the origin of that good.
Article 4.15. Indirect Materials
1. Indirect materials shall be considered originating, regardless of the place of their production. The value of such materials shall be the cost recorded in the accounting records of the producer of the merchandise, for the purposes of the qualification of origin of the merchandise.
2. Indirect materials are those used in the production of a good, but which are not physically incorporated into the good, such as:
a) fuel and energy;
b) tools, dies and molds;
c) spare parts and materials used in the maintenance of equipment and buildings;
d) lubricants, greases, composites and other materials used in production or to operate equipment or buildings;
e) gloves, goggles, footwear, clothing, safety equipment and attachments;
f) equipment, apparatus and attachments used for the verification or inspection of goods;
g) catalysts and solvents; or
h) any other material that is not incorporated in the merchandise, provided that it can be reasonably demonstrated that it was used in the production of such merchandise.
Article 4.16. Processes Conducted Outside the Territories of the Parties
A good that qualifies as an originating good in accordance with the requirements of this Chapter shall lose such status if it undergoes further processing or any other operation outside the territories of the Parties, other than loading, unloading or any other operation necessary to maintain it in good condition or to transport it to the territory of the other Party.
Article 4.17. Shipment, Transport and Transit of Goods
1. For goods to retain their originating status and benefit from preferential tariff treatment, they must have been shipped directly from the exporting Party to the importing Party. For this purpose, they shall be considered as shipped directly to:
a) goods transported only through the territory of one or both Parties;
b) goods in transit through one or more countries not party to the Agreement, with or without transshipment or temporary storage, under the supervision of the competent customs authority, provided that:
i) not intended for trade, use or employment in the country of transit; and
ii) do not undergo, during transportation or temporary storage, any operation other than loading, unloading or any other operation necessary to maintain them in good condition or ensure their preservation.
2. The importer may demonstrate compliance with paragraph 1(b):
a) in case of transit only, with transport documents, such as the air waybill, bill of lading or consignment note, evidencing transportation from the country of origin to the country of importation, as appropriate;
b) in case of transshipment, with the transport documents, such as the air waybill, bill of lading, consignment note or multimodal or combined transport document, proving the transport from the country of origin to the country of importation, as applicable; or
c) in case of storage, with the air waybill, bill of lading, consignment note or multimodal or combined transport document, evidencing the transport from the country of origin to the country of importation, as the case may be, and the documents issued by the customs authority or other competent authority authorizing the storage, in accordance with the national legislation of the non-Party, as applicable.
Article 4.18. Certification of Origin
1. The certificate of origin is the document that certifies that the goods qualify as originating goods in accordance with the provisions of this Chapter and, therefore, may benefit from the preferential tariff treatment agreed to by the Parties.
2. The certificate of origin shall be issued in the single format agreed upon by the Parties, which shall contain a sworn statement by the final producer or exporter of the good, stating full compliance with the provisions of this Chapter and the veracity of the information recorded therein.
3. Certificates of origin shall be issued at the request of the final producer or exporter of the goods.
4. The certificate of origin covers the export of one or more goods to the territory of a Party.
5. The issuance and control of certificates of origin shall be the responsibility of the competent authority designated by each Party, which may delegate the issuance of such certificates to other public agencies or private entities, in accordance with its national legislation. The contact points of the competent authorities shall be duly notified by the Parties.
6. The names and seals of the public agencies or private entities authorized to issue certificates of origin, as well as the record of the names and signatures of the officials accredited for such purpose, shall be those notified by the Parties to the General Secretariat of ALADI, either for the registration procedure or for any changes to such records, in accordance with the provisions set forth in Resolution 252 of ALADI.
7. The certificate of origin shall be valid for 12 months from the date of issue.
8. The certificate of origin shall:
a) be duly filled out in accordance with its instructions;
b) indicate the name and signature of the certifying officer of the certifying agent accredited under paragraph 6 who issues the certificate;
c) be numbered sequentially by each certifying agency;
d) present the seal of the certifying entity, which corresponds to the one that has been officially notified to the General Secretariat of ALADI;
e) be presented without erasures, erasures or amendments in any of its fields; and
f) be issued on or after the date of issuance of the commercial invoice corresponding to the transaction, except as provided in Article 4.23.
9. In the event that a good is temporarily entered, admitted or stored under customs control in the importing Party, the validity of the certificate of origin shall be extended for a period equal to that for which the good has remained under such regime.
10. For the issuance of a certificate of origin, the commercial invoice and all necessary documents demonstrating that the good complies with the provisions set forth in this Chapter shall be presented, including a declaration of origin provided by the final producer or exporter of the good containing, at a minimum, the following information:
a) name, denomination or company name of the declarant;
b) tax domicile of the declarant;
c) description of the merchandise to be exported, which must correspond to what is recorded in the exporter's commercial invoice;
d) classification of the goods to be exported in the Harmonized System;
e) FOB value in U.S. dollars of the merchandise to be exported, adjusted in accordance with Article 4.5;
f) information regarding the components of the goods, indicating:
i) materials originating in the Parties, for which the origin must be indicated; the national or Harmonized System tariff codes; the CIF value in U.S. dollars, adjusted in accordance with Article 4.5, if necessary; and the percentage they represent in the value of the final good, if necessary;
ii) non-originating materials, for which the origin must be indicated; the national or Harmonized System tariff codes; the CIF value in U.S. dollars, adjusted in accordance with Article 4.5, if necessary; and the percentage they represent in the value of the final good, if necessary; and
iii) production process flow chart; and g) signed statement indicating the truthfulness of the information provided.
11. When the exporter is not the producer of the good, the exporter may request the issuance of a certificate of origin based on a declaration provided voluntarily by the producer of the good to such exporter or directly to the competent authority or certifying entities of the exporting Party.
12. The Parties may agree on procedures for the issuance and transmission of certificates of origin electronically. These procedures shall be adopted by the Commission.
Article 4.19. Obligations with Respect to Imports
An importer claiming preferential tariff treatment with respect to a good imported into its territory from the territory of the other Party shall:
a) declare in the import document established by its legislation, based on a valid certificate of origin, that the merchandise qualifies as originating;
b) have in its possession the certificate of origin valid at the time of making the declaration referred to in subparagraph (a);
c) have in its possession the document that proves compliance with the requirements for shipment, transportation and transit of the merchandise established in Article 4.17, as applicable;
d) provide the documents referred to in subparagraphs (b) and (c), and in the case of the certificate of origin, a copy thereof, to the customs authority of the importing Party upon request; and
e) present, without delay, a corrected declaration and pay the corresponding customs duties, when he has reason to believe that the certificate of origin on which his import declaration is based contains incorrect information. The importer shall not be penalized when he presents the aforementioned declaration before the importing Party exercises its powers of verification or control or notifies the initiation of a procedure for requesting information or verification of origin in accordance with Articles 4.26, 4.27 or 4.28.
Article 4.20. Obligations with Respect to Exports
1. Before the importing Party exercises its powers of verification or control or notifies the initiation of a procedure for requesting information or verification of origin under Articles 4.26, 4.27 or 4.28, an exporter or producer who has signed a certificate or declaration of origin and has reason to believe that such certificate or declaration contains incorrect information shall promptly notify, in writing, his competent authority and all persons to whom he furnished the certificate or declaration of origin of this fact. In such cases the exporter or producer shall not be penalized for having submitted an incorrect certificate or declaration.
2. If the incorrect information is relevant to the origin of the merchandise, the importer must pay the corresponding customs duties. If the incorrect information is relevant to other taxes, the importer must pay them in accordance with his national legislation.
3. The exporter or producer who has signed a certificate of origin shall keep the necessary documentary evidence that the good complies with the requirements and make it available to the competent authority or authorized entity issuing the certificate or to the competent authority of the importing Party upon request.
Article 4.21. Exceptions
1. The Parties shall not require a certificate of origin for originating goods in the following cases:
a) an importation of goods the customs value of which does not exceed US$1,000 or its equivalent in national currency or such greater amount as the Party may establish; or
b) an importation of goods for which the importing Party has exempted the requirement of presentation of the certificate of origin.
2. Paragraph 1 shall not apply to imports made or intended to be made for the purpose of evading compliance with the certification requirements of this Chapter.
Article 4.22. Issuance of Duplicate Certificates of Origin
1. In the event of theft, loss or destruction of the certificate of origin, the exporter may request in writing a duplicate certificate of origin from the competent authority or certifying agency that issued it, on the basis of the export documents in his possession.
2. The duplicate issued must contain in the "REMARKS" field the legend "DUPLICATE", as well as the date of issuance and number of the original certificate, so that its validity will count from that date.
Article 4.23. Invoicing by a Third Country Operator
1. Goods that comply with the provisions of this Chapter shall retain their originating status, even when invoiced by commercial operators of a third country.
2. For the purposes of the provisions of paragraph 10 of Article 4.18, if exceptionally at the time of issuing a certificate of origin, the number of the commercial invoice to be issued by an operator of a third country is not known, the competent authority or certifying agency shall issue the certificate of origin, stating in said certificate, in the field corresponding to "REMARKS", that the goods will be invoiced from a third country, indicating the name or company name and address of the operator of the third country.
3. When applying for preferential tariff treatment, the importer must have in his possession the commercial invoice issued by the third country operator.
4. For the purposes of paragraph 3, the date of issue of the certificate of origin may be prior to the date of issue of the commercial invoice issued by the third country operator covering the import. Article 4.24: Formal errors Obvious formal errors, such as typing errors, in a certificate of origin shall not cause such certificate to be rejected if they are errors which do not create doubts as to the correctness of the statements contained in the certificate.
Article 4.25. Record-keeping Requirements
1. An exporter or producer shall retain for a minimum of 5 years from the date of issuance of the certificate of origin, all records necessary to demonstrate that the good qualifies as originating, including records relating to:
a) the acquisition, costs, value and payment for the exported merchandise;
b) the acquisition, costs, value and payment of all materials, including indirect materials, used in the production of the exported merchandise; and
c) the production of the merchandise, in the form in which it was exported.
2. All costs referred to in this Chapter shall be recorded and maintained in accordance with Generally Accepted Accounting Principles applicable in the territory of the Party where the good is produced.
3. An importer claiming preferential tariff treatment for a good shall retain, fora minimum of 5 years from the date of such claim, all records or documents necessary to support the preferential tariff treatment referred to in Article 4.19. In the case of the certificate of origin, the importer shall keep the original.
4. The competent authority of each Party shall keep an updated record of the names and seals of its certifying entities, as well as the names, signatures and seals of the officials authorized to issue certificates of origin.
5. The competent authority or certifying agency of each Party shall keep on file a copy of all certificates of origin issued for at least 5 years from the date of issuance. The file shall include all information supporting the issuance of the certificate.
Article 4.26. Verification and Control of Origin
1. In case of doubt as to the authenticity of the certificate of origin, the veracity of the information contained in such certificate or the presumption of non- compliance with the provisions of this Chapter, the competent authority of the importing Party may initiate a procedure for requesting information or verification of origin, in accordance with Articles 4.27 and 4.28.
2. In the event that doubts arise at the time of release of the goods, the customs authority may not prevent the continuation of the import process and the release of the goods. However, the customs authority may adopt such measures as it deems necessary to ensure the fiscal interest, in accordance with its national legislation.
3. When measures are adopted to ensure the fiscal interest, in accordance with paragraph 2, the competent authority of the importing Party shall initiate the procedures referred to in Articles 4.27 or 4.28 within 60 days following the adoption of the measures; otherwise, the measures adopted shall be lifted.
Article 4.27. Procedure for Requesting Information
1. The competent authority of the importing Party may request information from the competent authority of the exporting Party responsible for the certification of origin, in order to verify the authenticity of the certificates of origin or the veracity of the information contained therein.
2. The information shall be only that which the competent authority of the exporting Party requests from a producer or exporter in order to issue certificates of origin, in accordance with paragraph 10 of Article 4.18.
3. The competent authority of the importing Party shall indicate in its request the legal basis, number and date of the certificates of origin or the time period for which it is requesting the information related to a producer or exporter.
4. The competent authority of the exporting Party shall have 60 days from the date of receipt of the request to provide the requested information.
5. In the event that the competent authority of the importing Party does not receive the requested information and documentation within the established term or that the exporting Party does not recognize the authenticity of the certificates of origin or the veracity of the information contained therein, it may deny preferential tariff treatment to the goods covered by the certificates of origin subject to review and execute the measures that have been adopted in order to guarantee the fiscal interest.
6. The competent authority of the importing Party shall have a period of 60 days following the date of receipt of the requested information and documentation to determine the authenticity of the certificates of origin or the veracity of the information contained therein. If the competent authority of the importing Party does not issue a determination within the aforementioned term, it shall proceed to accept the preferential tariff treatment and to lift the measures that have been adopted in order to guarantee the fiscal interest within a maximum term of 90 days following the request for the release of the measures by the importer to the customs authority of the importing Party, which may be extended for up to 30 additional days in duly substantiated exceptional cases.
T. In the event that the competent authority of the exporting Party recognizes the authenticity of the certificates of origin or the veracity of the information contained therein and no doubts remain on the part of the competent authority of the importing Party, it shall proceed to accept the preferential tariff treatment and to lift the measures that have been adopted in order to guarantee the fiscal interest within a maximum period of 90 days following the request for release of the measures by the importer to the customs authority of the importing Party, which may be extended for up to 30 additional days in duly substantiated exceptional cases. If doubts persist regarding the origin of the merchandise, the competent authority of the importing Party shall communicate to the competent authority of the exporting Party the initiation of a verification of origin in accordance with Article 4.28.
Article 4.28. Procedure for Verification of Origin
1. The competent authority of the importing Party may initiate a verification of origin for the purpose of verifying the authenticity of the certificates of origin, the veracity of the information contained therein or the compliance with the provisions of this Chapter.
2. In order to carry out an origin verification procedure, the competent authority of the importing Party shall have the following mechanisms in place:
a) written origin verification questionnaires addressed to the exporter or producer in the territory of the other Party;
b) visits to the facilities of an exporter or a producer in the territory of the other Party, for the purpose of examining the facilities and production processes of the good in question, reviewing accounting records and verifying information and documentation attesting to the originating status of the good; or
c) other procedures to be agreed upon by the Parties.
3. Pursuant to paragraph 2(a):
a) The competent authority of the importing Party, before sending an origin verification questionnaire, shall notify the competent authority of the exporting Party of the sending of such questionnaire, informing it of the name of the producing or exporting company, the period of review, as well as the tariff classification and description of the goods subject to verification.
b) The origin verification questionnaire shall be sent to the producer or exporter by certified mail with acknowledgement of receipt or by any other means that confirms its receipt, which shall be sent directly to the address declared in the corresponding certificates of origin.
c) The producer or exporter shall have a period of 30 days following t h e date of receipt to answer the questionnaire of verification of origin. Within such period, the producer or exporter may request an extension of up to 30 additional days for the submission of the requested information and documentation.
d) In the event that the producer or exporter does not answer the questionnaire for verification of origin within the established period, the importing Party may deny preferential tariff treatment to the goods covered by the certificates of origin subject to verification and execute the measures it has adopted in order to guarantee the fiscal interest.
4. Pursuant to paragraph 2(b):
a) The competent authority of the importing Party shall notify, by registered mail with acknowledgement of receipt or by any other means confirming receipt, the competent authority of the exporting Party, as well as the producer or exporter, of its intention to carry out an origin verification visit.
b) The visit proposal must contain:
i) the identification and contact details of the competent authority making the notification;
ii) the name of the exporter or producer to be visited;
iii) the date of the proposed verification visit;
iv) the purpose and scope of the proposed verification visit, making specific mention of the verification period, the merchandise or merchandise, as well as the certificates of origin to be verified;
v) the tariff classification and description of the goods;
vi) the names and positions of the officials who will carry out the verification visit; and
vii) the legal basis for the visit.
c) Any modification to the information referred to in items (i), (iii) or (vi) of subparagraph (b) shall be notified in writing to the exporter or producer and to the competent authority of the exporting Party at least 10 days before the proposed date of the visit.
d) The producer or exporter shall have a period of 20 days following the date of notification of the proposed visit, to express in writing its consent to the verification visit to the competent authority of the importing Party, in which it must indicate both the address where the production process of the goods subject to verification took place, as well as the address where the records relating to the origin of such goods are located, the latter being the place where the verification visit will begin.
e) When the producer or exporter does not authorize the proposed visit of verification of origin within the established term, the importing Party may deny preferential tariff treatment to the goods covered by the certificates of origin subject to verification and implement the measures it has adopted in order to ensure the fiscal interest.
f) When the producer or exporter receives the notification of the proposed visit, he may request, within 15 days from the date of receipt of such notification, a one-time postponement of the start of the verification visit for a period of up to 30 days. The importing Party may not deny preferential tariff treatment based solely on the postponement of the verification visit.
g) When the producer or exporter, during the verification visit, does not provide or refuses to provide the records or other documentation related to the origin of the goods under investigation, the importing Party may deny preferential tariff treatment to the goods covered by the certificates of origin subject to verification and execute the measures it has adopted in order to guarantee the fiscal interest.
h) The producer or exporter may designate 1 or 2 observers to be present during the visit. Failure to designate observers shall not result in the postponement of the visit, nor shall it affect the validity or evidentiary value of the minutes or the proceedings.
i) Without prejudice to any other type of formality that each Party considers necessary, once the verification visit is concluded, the officials of the competent authority of the importing Party shall sign a record together with the producer or exporter and, if applicable, with the observers. Said minutes shall record the information and documentation gathered by the competent authority of the importing Party, as well as any other fact considered relevant for the determination of the origin of the goods subject to verification and shall include the name of the officials in charge of the visit, the name of the person responsible for attending the visit for the company and the name of the observers. In the event that the producer or exporter or the observers refuse to sign the minutes, this fact shall be recorded. Refusal to sign the minutes by the exporter, producer or observers does not invalidate the minutes.
Article 4.29. Determination of Origin
1. The competent authority of the importing Party shall issue, within a period of no more than 365 days following the date of notification of the initiation of the verification procedure, a written determination of origin informing the producer or exporter whether or not the merchandise subject to verification qualifies as originating, which shall include the considerations of fact and legal grounds that justify such determination. Such determination of origin shall be notified by certified mail with acknowledgment of receipt or by any other means that confirms its receipt.