Article 4.2. ADMINISTRATION
1. Each Party shall administer in a uniform, impartial, and reasonable manner all its laws, regulations, decisions, and rulings governing customs matters.
2. Each Party shall ensure that its laws and regulations governing customs matters are not prepared, adopted, or applied with a view to or with the effect of creating arbitrary or unwarranted procedural obstacles to international trade.
Article 4.3. ADVANCE RULINGS
1. Each Party shall provide for the issuance of written advance rulings to a person described in subparagraph 2(a) concerning tariff classification, questions arising from the application of the Customs Valuation Agreement, country of origin, and the qualification of a good as an originating good under this Agreement.
2. Each Party shall adopt or maintain procedures for the issuance of advance rulings that:
(a) provide that an importer in its territory or an exporter or producer in the territory of the other Party may request such a ruling prior to the importation in question;
(b) include a detailed description of the information required to process a request for an advance ruling; and
(c) provide that the advance ruling be based on the facts and circumstances presented by the person requesting the ruling.
3. Each Party shall provide that its customs authorities:
(a) may request, at any time during the course of evaluating a request for an advance ruling, additional information necessary to evaluate the request;
(b) shall issue the advance ruling expeditiously, and within 120 days after obtaining all necessary information; and
(c) shall provide, upon request of the person who requested the advance ruling, a full explanation of the reasons for the ruling.
4. Subject to paragraph 5, each Party shall apply an advance ruling to importations into its territory beginning on the date of issuance of the ruling or such date as may be specified in the tuling. The treatment provided by the advance ruling shall be applied to importations without regard to the identity of the importer, exporter, or producer, provided that the facts and circumstances are identical in all material respects.
5. A Party may modify or revoke an advance ruling upon a determination that the ruling was based on an error of fact or law, or if there is a change in law consistent with this Agreement, a material fact, or circumstances on which the ruling is based. The issuing Party shall postpone the effective date of such modification or revocation for a period of not less than 60 days where the person to whom the ruling was issued has relied in good faith on that ruling.
Article 4.4. REVIEW AND APPEAL
1. With respect to determinations relating to customs matters, each Party shall provide that importers in its territory have access to:
(a) at least one level of administrative review of determinations by its customs authorities independent of the official or office responsible for the decision under review; (4-1) and
(b) judicial review of decisions taken at the final level of administrative review.
Article 4.5. COOPERATION
1. Each Party shall endeavor to provide the other Party with advance notice of any significant modification of administrative policy or other similar development related to its laws or regulations governing importations that is likely to substantially affect the operation of this Agreement.
2. The Parties shall through their competent authorities and in accordance with this Chapter, cooperate in achieving compliance with their respective laws or regulations pertaining to:
(a) implementation and operation of this Agreement;
(b) restrictions and prohibitions on imports or exports; and
(c) other issues that the Parties may agree.
3. Where a Party has a reasonable suspicion of unlawful activity related to its laws or regulations governing importations, it may request the other Party to provide the following types of information pertaining to trade transactions relevant to that activity that took place no more than five years before the date of the request, or from the date of discovery of the apparent offense in cases of fraud and in other cases on which the Parties may agree:
(a) the name and address of the importer, exporter, manufacturer, buyer, vendor, broker, or transporter;
(b) shipping information relating to container number, size, port of loading before arrival, destination port after departure, name of vessel and carrier, the country of origin, place of export, mode of transportation, port of entry of the goods, and cargo description; and
(c) classification number, quantity, unit of measure, declared value, and tariff treatment.
The requesting Party shall make its request in writing; shall specify the grounds for reasonable suspicion and the purposes for which the information is sought; and shall identify the requested information with sufficient specificity for the other party to locate and provide the information. For example, the requesting Party may identify the importer, exporter, country of origin, the time period, port or ports of entry, cargo description, or Harmonized System number applicable to the importation or exportation in question.
4. For purposes of paragraph 3, a reasonable suspicion of unlawful activity means a suspicion based on one or more of the following types of relevant factual information obtained from public or private sources:
(a) historical evidence that a specific importer, exporter, manufacturer, producer, or other company involved in the movement of goods from the territory of one Party to the territory of the other Party has not complied with a Party's laws or regulations governing importations;
(b) historical evidence that some or all of the enterprises involved in the movement from the territory of one Party to the territory of the other Party of goods within a specific product sector where goods are moving from the territory of one Party to the territory of the other Party has not complied with a Party's laws or regulations governing importations; or
(c) other information that the Parties agree is sufficient in the context of a particular request.
5. The other Party shall respond by providing available information that is material to the request.
6. Each Party shall also endeavor to provide the other Party with any other information that would assist in determining whether imports from or exports to the other Party are in compliance with applicable domestic laws or regulations governing importations, including those related to the prevention or investigation of unlawful shipments.
7. The Parties shall endeavor to provide each other technical advice and assistance for the purpose of improving risk assessment techniques, simplifying and expediting customs procedures, advancing the technical skill of personnel, and enhancing the use of technologies that can lead to improved compliance with laws or regulations governing importations.
8. The Parties shall use their best efforts to explore additional avenues of cooperation for the purpose of enhancing each Party's ability to enforce its laws or regulations governing importations, including by examining the establishment and maintenance of other channels of communication to facilitate the secure and rapid exchange of information, and considering efforts to improve effective coordination on importation issues, building upon the mechanisms established in this Article and the cooperation established under any other relevant agreements.
Article 4.6. CONFIDENTIALITY
1. Where a Party providing information to the other Party in accordance with this Chapter designates the information as confidential, the other Party shall maintain the confidentiality of the information. The Party providing the information may require written assurances from the other Party prior to forwarding information that such information will be held in confidence, used only for the purposes requested, and not disclosed without specific permission of the Party providing the information, in accordance with its laws and regulations, except where the Parties agree that the information may be used or disclosed for law enforcement purposes or in the context of judicial proceedings.
2. A Party may decline to provide information requested by the other Party where the other Party has failed to act in conformity with the assurances referred to in paragraph 1.
3. Each Party shall maintain procedures to ensure that confidential information, including information the disclosure of which could prejudice the competitive position of the person providing the information, submitted in connection with the Party's administration of its import and export laws is entitled to treatment as confidential information and protected from unauthorized disclosure.
Article 4.7. PENALTIES
Each Party shall adopt or maintain measures that provide for the imposition of civil or administrative penalties and, where appropriate, criminal penalties, for violations of its customs laws and regulations governing classification, valuation, country of origin, and eligibility for preferential treatment under this Agreement.
Article 4.8. RELEASE AND SECURITY
1. Each Party shall adopt or maintain procedures:
(a) providing for the release of goods within a period of time no greater than that required to ensure compliance with its customs laws;
(b) allowing, to the extent possible, goods to be released within 48 hours of arrival;
(c) allowing, to the extent possible, goods to be released at the point of arrival, without interim transfer to customs warehouses or other locations; and
(d) allowing importers who have complied with the procedures that the Party may have relating to the determination of value and payment of duty to withdraw goods from customs, but may require importers to provide security as a condition to the release of goods, when such security is required to ensure that obligations arising from the entry of the goods will be fulfilled.
2. Each Party shall:
(a) ensure that the amount of any security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled, and, where applicable, not in excess of the amount chargeable, based on tariff rates under domestic and international law, including this Agreement, and on valuation in accordance with the Customs Valuation Agreement;
(b) ensure that any security shall be discharged as soon as possible after its customs authorities are satisfied that the obligations arising from the importation of the goods have been fulfilled; and
(c) shall adopt procedures allowing:
(i) importers to provide security such as bank guarantees, bonds, or other non-cash financial instruments;
(ii) importers that regularly enter goods to provide security such as standing bank guarantees, continuous bonds or other non-cash financial instruments covering multiple entries; and
(iii) importers to provide security in any other forms specified by its customs authorities.
Article 4.9. RISK ASSESSMENT
Each Party shall employ risk management systems that enable its customs authorities to concentrate inspection activities on high-risk goods and that facilitate the movement of low-risk goods, including systems which allow for the processing of information regarding an importation prior to the arrival of the imported goods.
Article 4.10. EXPRESS SHIPMENTS
Each Party shall ensure efficient clearance of all shipments, while maintaining appropriate control and customs selection. In the event that a Partyâs existing system does not ensure efficient clearance, it should adopt procedures to expedite express shipments. Such procedures shall:
(a) provide for pre-arrival processing of information related to express shipments;
(b) permit, as a condition for release, the submission of a single document in the form that the Party considers appropriate, such as a single manifest or a single declaration, covering all of the goods in the shipment by an express service company, through, if possible, electronic means;
(c) provide, where possible, for deferred payment of duties, taxes, and fees with appropriate guarantees;
(d) minimize, to the extent possible, the documentation required for the release of express shipments; and
(e) allow, in normal circumstances, for an express shipment to be released within six hours of the submission of necessary customs documentation.
Article 4.11. DEFINITIONS
For purposes of this Chapter, customs matters means matters pertaining to the classification and valuation of goods for customs duty purposes, rates of duty, country of origin, and eligibility for preferential treatment under this Agreement, and all other procedural and substantive requirements, restrictions, and prohibitions on imports or exports, including such matters pertaining to goods imported or exported by or on behalf of travelers. Customs matters do not include matters pertaining to antidumping or countervailing duties.
Chapter 5. TEXTILES AND APPAREL
Article 5.1. SCOPE
1. This Chapter applies to measures adopted or maintained by a Party, including administrative, judicial, and enforcement actions by a Party, and to cooperation between the Parties, relating to trade in textile and apparel goods.
2. Singaporeâs obligations under this Chapter with respect to enterprises cover:
(a) conduct of enterprises in Singapore, including:
(i) production, processing, or manipulation of textile or apparel goods in its territory, including in a free trade zone,
(ii) importation of such goods into its territory, including into a free trade zone or
(iii) exportation of such goods from its territory, including from a free trade zone; and
(b) conduct of enterprises operating under the Outward Processing Arrangement, as well as maintenance of records and documents by such enterprises in Singapore that may be relevant to determining the existence or extent of circumvention.
3. In the event of any inconsistency between this Chapter and another Chapter of this Agreement, this Chapter shall prevail to the extent of the inconsistency.
Article 5.2. ANTI-CIRCUMVENTION
1. The details of cooperation on matters relating to textile and apparel goods are as stated in this Chapter. Each Party shall take necessary and appropriate measures, including administrative, judicial and enforcement action:
(a) to aggressively enforce its laws relating to circumvention;
(b) to actively cooperate with the other Party in the enforcement of the other Partyâs laws relating to circumvention; and
(c) to prevent circumvention.
2. In furtherance of paragraph 1, each Party shall maintain or adopt laws that:
(a) authorize its officials to take action to deter circumvention and to carry out obligations under this Chapter relating to information sharing; and
(b) establish criminal penalties, and civil or administrative penalties, that effectively deter circumvention.
Article 5.3. MONITORING
1. Singapore shall establish and maintain programs to monitor the importation, production, exportation, and processing or manipulation in a free trade zone of textile and apparel goods, as specified in this Article. These programs shall provide the information necessary for each Party to ascertain whether a violation of its laws relating to trade in textile and apparel goods or an act of circumvention is occurring or has occurred.
2. Singapore shall institute a registration system covering all enterprises operating in its territory or operating under the Outward Processing Arrangement and that are engaged in the production of textile or apparel goods or the export to the United States of such goods that a person claims as originating goods or marks as products of Singapore.
3. Singapore shall register enterprises under the system described in paragraph 2 for terms of up to two years, subject to renewals of up to two years at a time. Singapore shall not authorize a textile or apparel good that a person claims as an originating good or marks as a product of Singapore to be exported to the United States unless the good is produced by a registered enterprise and exported by a registered enterprise.
4. Singapore shall establish and maintain a program to verify that textile and apparel goods that a person claims as originating goods or marks as products of Singapore and that are exported to the United States are produced by registered enterprises. This program shall include on-site government inspections of such enterprises at least twice a year and without prior notice to verify that they comply with laws of Singapore relating to trade in textile and apparel goods and that their production of and capability to produce such goods are consistent with claims regarding the origin of such goods. Under this program, Singapore shall provide to the United States:
(a) within 14 days of the completion of each such inspection, a written report regarding the results of that inspection, including any conduct discovered as a result of the inspection that Singapore believes to be a violation of either Partyâs laws relating to circumvention, and
(b) each year, a written report summarizing the results of all such inspections on an enterprise-by-enterprise basis.
The first report under subparagraph (b) shall be submitted no later than 12 months after this Chapter takes effect. Singapore shall designate any information in reports under subparagraph (a) or (b) that it considers to be confidential.
5. For each shipment of textile or apparel goods that a registered enterprise produces for exportation to the United States or exports to the United States, Singapore shall require the enterprise to maintain in Singapore records relating to such production or exportation for a period of five years from the date on which such records are created. Singapore also shall require each registered enterprise that produces textile or apparel goods to maintain in Singapore records relating to its production capabilities in general, the number of persons it employs, and any other records and information sufficient to allow officials of each Party to verify the enterpriseâs production and exportation of textile or apparel goods, including:
(a) records demonstrating that the materials used to produce or assemble textile and apparel goods were obtained or produced by the enterprise and were available for production, such as:
(i) bills of lading from the persons that supplied the materials;
(ii) customs clearance records or equivalent records if the materials were imported into Singapore; and
(iii) transaction records, including:
(A) commercial invoices, if the materials were purchased,
(B) transfer records,
(C) mill certificates if the materials were spun, extruded (for yarns) or woven, knitted or formed by any other fabric forming process (for example, tufting) by an enterprise of Singapore,
(D) production records if the registered enterprise produced the materials, and
(E) purchase orders if the materials were imported from a foreign producer, broker, trader, or other intermediary;
(b) with respect to textile and apparel goods the enterprise has produced that are claimed as originating goods or marked as products of Singapore, production records that substantiate the claim or marking, such as:
(i) cutting records for products assembled from cut components;
(ii) assembly or production records that the production manager maintains on the factory floor that document daily production, including workersâ daily production records, wage records, production steps, and sewing tickets; and
(iii) employee time cards, payment records, or other documentation showing which employees were working, how long they worked, and what work they performed during the period the goods were produced;
(c) with respect to textile and apparel goods that a subcontractor has produced in whole or in part for the enterprise and that are claimed as originating goods or marked as products of Singapore, records that substantiate the claim, such as:
(i) cutting records for products assembled from cut components;
(ii) if partially assembled by the subcontractor, production records documenting the partial assembly;
(iii) bills of lading; and
(iv) transfer documents to the shipper or primary contractor and proof of payment by the shipper or primary contractor for the work done; and
(d) records establishing which production processes took place outside the territory of Singapore, if a portion of the processing or operations was conducted there under the Outward Processing Arrangement, such as:
(i) records demonstrating export from Singapore of materials, components, subassemblies or finished goods for processing; and
(ii) customs records or records containing equivalent information, such as cargo manifests, showing re-importation into Singapore of the goods after processing.
6. Singapore shall establish and maintain a program to ensure that textile and apparel goods that are imported into or exported from Singapore or that are processed or manipulated in a free trade zone in Singapore en route to the United States are marked with the correct country of origin and that the documents accompanying the goods accurately describe the goods. This program shall provide for:
(a) immediate referral by Singapore officials of suspected violations of either Partyâs laws relating to intentional circumvention to the appropriate enforcement authorities; and
(b) not later than 14 days after the resolution of the matter (5-1), issuance by Singapore to the United States of a written report of
(i) each violation of a law of Singapore relating to circumvention, including a failure to maintain or produce records, and
(ii) any other act of circumvention;
involving textile or apparel goods destined for the United States, occurring in the territory of Singapore, and resulting in enforcement action by Singapore. In each case, the report shall state the enforcement action taken and the ultimate resolution of the matter. Singapore shall designate in the report any information it considers to be confidential, except that, at a minimum, Singapore may not designate the name of any enterprise that its enforcement authorities have determined to have engaged in circumvention.
Article 5.4. COOPERATION
General
1. In furtherance of Article 5.2.1(b), on request, a Party shall, in a manner consistent with its laws and procedures,
(a) promptly obtain from an enterprise and provide to the other Party, to the extent available, all correspondence, reports, bills of lading, invoices, order confirmations, and other documents or information, relevant to circumvention, that the requesting Party considers may have taken place; and
(b) facilitate the gathering by the other Partyâs enforcement authorities of information relevant to circumvention, including, as appropriate, by conducting site visits or establishing contacts with persons in the Party's territory.
Any request for cooperation under this Article shall be made in writing and shall include a brief statement of the matter at issue and the cooperation requested.
Site Visits
2. A Party seeking to conduct site visits in the territory of the other Party shall provide a written request to the host Party's competent authority not less than14 days before the proposed dates of the visits. The request shall identify the number of enterprises to be visited, the proposed dates of the visits, and the reason for the visits, but need not specify the identities of the enterprises to be visited.
3. The competent authority shall be prohibited from informing any person, other than officials of the host Party directly responsible for organizing the site visits, of the request and its contents. The host Party shall prohibit those officials and any other person in its territory from notifying an enterprise in advance of a visit. The responsible officials of the host Party shall seek permission to conduct a site visit from a responsible person at the enterprise at the time of the visit.
4. Responsible officials of the Party seeking to conduct site visits in the territory of the other Party shall conduct such visits together with responsible officials of the host Party and in accordance with the laws of the host Party. On completion of a site visit, the requesting Party shall brief the responsible officials of the host Party and shall subsequently provide to that Party a written report of the results of the visit. The written report shall include:
(a) the name of the enterprise visited;
(b) for each shipment checked, information discovered relating to circumvention;
(c) observations made at the enterprise relating to circumvention; and
(d) as relevant, an assessment of whether the enterprise is maintaining records of the type described in Article 5.3.5 and can demonstrate that its production of and capability to produce textile or apparel goods is consistent with claims that the textile or apparel goods it produces or has produced are originating goods or products of the host Party.
5. If the responsible person at an enterprise proposed to be visited denies permission for the site visit to occur:
(a) the visit shall not occur;
(b) the host Party shall not issue any visas or export licenses that may be required to accompany textile or apparel goods that the enterprise produces or exports when such goods are exported to the requesting Party, until the host Party determines that the enterprise's production of and capability to produce such goods is consistent with claims that textile or apparel goods it produces or has produced are originating goods or products of the host Party; and
(c) the requesting Party may deny entry of textile or apparel goods produced or exported by the enterprise until that Party determines that the enterpriseâs production of and capability to produce such goods is consistent with claims that textile or apparel goods it produces or has produced are originating goods or products of the host Party.
6. Permission for a site visit shall be deemed to have been denied if the enterprise does not allow the responsible officials of the requesting Party access to:
(a) the enterprise's premises, including its production and storage areas and any other facilities;
(b) any production records relating to:
(i) textile or apparel goods that have been exported to the territory of the requesting Party;
(ii) the enterpriseâs production capabilities in general; and
(iii) number of persons the enterprise employs; and
(c) any other records or information, including records and information of the type described in Article 5.3, relevant to a determination of whether the enterpriseâs production of and capability to produce textile or apparel goods are consistent with claims that the textile and apparel goods it produces or has produced are originating goods or products of the host Party.
Establishing Facts