(iii) the transit entry is justified for geographical reasons or by considerations related exclusively to transport requirements.
3. Compliance with the provisions set out in paragraph 2(b) shall be authenticated by the importer presenting to the customs authorities of the importing Party either with customs documents of the non-Parties or with any other documents provided to the customs authorities of the importing Party.
Article 19. Treatment of Packing
1. Where, for the purposes of assessing customs duties, a Party treats products separately from their packing, it may also, in respect of its imports consigned from the other Party, determine separately the origin of such packing.
2. Where paragraph 1 is not applied, packing shall be considered as forming a whole with the products and no part of any packing required for their transport or storage shall be considered as having been imported from a non-Party when determining the origin of the products as a whole.
Article 20. Accessories, Spare Parts and Tools
The origin of accessories, spare parts, tools and instructional or other information materials presented with the goods therewith shall be neglected in determining the origin of the goods, provided that such accessories, spare parts, tools and information materials are classified and collected customs duties with the goods by the importing Party.
Article 21. Fungible Products and Materials
In determining whether a good is an originating good, any interchangeable materials shall be distinguished by:
(a) physical separation of the goods; or
(b) an inventory management method recognised in the generally accepted accounting principles of the exporting Party.
Article 22. Neutral Elements
Unless otherwise provided, for the purpose of determining the origin of goods, the origin of the power and fuel, plant and equipment, or machines and tools used to obtain the goods, or the materials used in its manufacture which do not remain in the goods or form part of the goods, shall not be taken into account.
Chapter 5. Customs Procedures
Article 23. Scope
This Chapter is applicable to the extent permitted by the domestic laws of each Party and within the competence and available resources of their respective customs administrations.
Article 24. General Provisions
1. The Parties recognise that their bilateral trade may be facilitated by simplifying customs procedures and having expeditious customs clearance of goods.
2. Customs procedures of both Parties shall, where possible, conform to the standards and recommended practices of the World Customs Organization.
Article 25. Transparency
1. Each Party shall ensure that its laws, regulations, guidelines, procedures and administrative rulings governing customs matters are promptly published, either on the Internet or in print form.
2. Each Party shall designate, establish and maintain one or more inquiry points to address inquiries from interested persons pertaining to customs matters, and shall make available on the Internet information concerning the procedures for making such inquiries.
3. For greater certainty, nothing in this Article or in any part of this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting methodology.
Article 26. Risk Management
1. The Parties shall adopt a risk management approach in its customs activities based on its identified risk of goods in order to facilitate the clearance of low-risk consignments, while focusing its inspection activities on high-risk goods.
2. The Parties shall exchange best practices on risk management techniques used for customs purposes.
Article 27. Certificate of Origin
1. For the purpose of obtaining preferential tariff treatment in the other Party, a Certificate of Origin shall be issued by the authorised body of the exporting Party.
2. Each Party shall inform the customs administration of the other Party of the names and addresses of the authorised bodies issuing the Certificate of Origin and shall provide specimen impressions of official seals used by such authorised bodies. Any change in names, addresses or official seals shall be promptly notified to the other Party.
3. The Certificate of Origin shall be issued before or at the time of exportation whenever the goods to be exported can be considered originating in that Party subject to Chapter 4 (Rules of Origin). The exporter or producer shall submit a written application for the Certificate of Origin together with appropriate supporting documents proving that the products to be exported qualify for the issuance of a Certificate of Origin.
4. The Certificate of Origin, based on the formats as set out in Annex 3 (Formats of Certificates of Origin), shall be completed in the English language and duly signed and stamped, covering one or more goods under one consignment. A Certificate of Origin is applicable to a single importation of a good into the Party's territory and shall remain valid for twelve (12) months from the date of issue.
5. In cases where a Certificate of Origin has not been issued before or at the time of exportation due to involuntary errors or omissions or other valid causes, the Certificate of Origin may be issued retrospectively but not later than one (1) year from the date of shipment, bearing the words "ISSUED RETROSPECTIVELY".
6. In cases of theft, loss or accidental destruction of a Certificate of Origin, the exporter or producer may, within validity of the original Certificate of Origin, make a written request to the authorised bodies of the exporting Party for issuing a certified copy, provided that the exporter or producer makes sure that the original copy previously issued has not been used. The certified copy shall bear the words "CERTIFIED TRUE COPY of the original Certificate of Origin number ___ dated ___".
Article 28. Claims for Preferential Treatment
1. Except as otherwise provided in this Chapter, each Party's customs administration shall require an importer claiming preferential tariff treatment for a good to:
(a) make a written declaration before or at the time of importation, in accordance with its laws and regulations, that the good qualifies as an originating good;
(b) have a Certificate of Origin in his possession;
(c) submit, if required by the importing customs administration, the original Certificate of Origin and such other documentation relating to the importation of the goods; and
(d) promptly make a corrected declaration and pay any duties owed, where the importer has reason to believe that a Certificate of Origin, on which a declaration was based, contains information that is not correct.
2. A Party may deny preferential tariff treatment under this Agreement to an imported good if the importer fails to comply with any requirement of this Chapter.
3. Each Party shall provide that:
(a) where the origin of the product is not in doubt, the discovery of minor discrepancies between the statements made in the Certificate of Origin and those made in the documents submitted to the customs administration of the importing Party for the purpose of carrying out the formalities for importing the products shall not ipso facto invalidate the Certificate of Origin, if it does in fact correspond to the same products presented; and
(b) for multiple items declared under the same Certificate of Origin, a problem encountered with one of the items listed shall not affect or delay the granting of preferential tariff treatment and customs clearance of the remaining items listed in the Certificate of Origin.
4. Where a Certificate of Origin is not provided at the time of importation of a good, the importing Party, upon the request of the importer, may impose the applied non-preferential import customs duty or payment of a deposit equivalent to the full duties on that good as requested. In such a case, the importer will be entitled to a refund of any excess import customs duty or deposit paid if the payment refund claim is made within one (1) year from the date the good was imported, provided that the requirements in paragraph 1 are fulfilled.
Article 29. Verification of Origin
1. A Certificate of Origin is the basis for eligibility of preferential tariff treatment for goods imported from the exporting Party. In cases where verification is required, the importing Party may conduct verification by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer in the territory of the exporting Party;
(c) requests that the competent authority of the exporting Party verify the origin of a good; or
(d) such other procedures as the customs administrations of the Parties may jointly decide.
2. A verification process under paragraph 1 shall only be initiated when there are reasonable grounds to doubt the accuracy or authenticity of the origin of the goods concerned, and when the customs duty is sufficiently material to warrant the request.
3. A verification request to the competent authority of the exporting Party shall specify the reasons, and any documents and information obtained justifying the verification activities shall be forwarded to the competent authority of the requested Party.
4. To the extent allowed by its domestic laws and practices, the competent authorities of the exporting Party shall fully co-operate in any action to verify eligibility.
5. The Party conducting the verification shall, through its competent authority, inform the customs administration of the other Party of the outcome of the verification conducted.
Article 30. Waiver of Certificate of Origin
Each Party shall provide that a Certificate of Origin shall not be required for:
(a) a commercial importation of a good whose value does not exceed US$600 or its equivalent amount in the Party's currency, or such higher amount as it may establish, except that it may require that the invoice accompanying the importation include a statement certifying that the good qualifies as an originating good; or
(b) a non-commercial importation of a good whose value does not exceed US$600 or its equivalent amount in the Party's currency, or such higher amount as it may establish, provided that the importation does not form part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements.
Article 31. Record Keeping Requirement
1. Each Party shall require its producers, exporters and importers to retain origin documents for three (3) years.
2. Each Party shall ensure that its authorised bodies retain copies of Certificates of Origin and other documentary evidence of origin for three (3) years. 3. The records to be maintained may include electronic records and shall be maintained in accordance with the domestic laws and practices of each Party.
Article 32. Advance Rulings
1. Each Party shall issue an advance ruling, on an application of the exporter, importer or any person, that is submitted at least three (3) months before the date of importation of the goods that are the subject of the application. The importing Party shall issue its determination regarding the origin of the good within sixty (60) days of the date of an application for advance ruling, provided that all the origin requirements have been complied with. An applicant for an advance ruling from China Customs shall be registered with China Customs.
2. The importing Party shall apply an advance ruling issued by it under paragraph 1. The customs administration of each Party shall establish a validity period for an advance ruling of not less than two (2) years from the date of its issue or in accordance with its respective domestic laws.
3. The importing Party may modify or revoke an advance ruling:
(a) if the ruling was based on an error of fact;
(b) if there is a change in the material facts or circumstances on which the ruling was based;
(c) to conform with a modification of this Chapter; or
(d) to conform with a judicial decision or a change in its domestic laws. 4. Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.
Article 33. Penalties
Each Party shall impose punitive measures for violations of its laws and regulations relating to this Chapter in accordance with its domestic legislation.
Article 34. Review and Appeal
With respect to determinations relating to eligibility for preferential treatment under this Agreement or advance rulings, each Party shall provide that importers in its territory have access to administrative review6 and judicial review in accordance with its domestic laws and regulations.
Article 35. Confidentiality
1. Nothing in this Agreement shall be construed to require a Party to furnish or allow access to confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private.
2. Each Party shall maintain, in accordance with its domestic laws, the confidentiality of information collected pursuant to this Chapter, including information obtained from the verification of Certificates of Origin and shall protect that information from disclosure that could prejudice the competitive position of the persons providing the information.
3. Pursuant to Article 31 (Record Keeping Requirement), any information communicated between the Parties concerned shall be treated as confidential and used for the validation of Certificates of Origin only. For Singapore the level of administrative review may include the Ministry supervising the customs administration.
Article 36. Third Party Invoicing
The importing Party shall accept Certificates of Origin in cases where the sales invoice is issued either by a company located in a non-Party or by an exporter in the exporting Party for the account of the said company, provided that the product meets the requirements of Chapter 4 (Rules of Origin).
Chapter 6. Trade Remedies
Article 37. Definitions
For the purposes of this Chapter:
(a) domestic industry means, with respect to an imported product, the producers as a whole of the like or directly competitive product or those producers whose collective production of the like or directly competitive product constitutes a major proportion of the total domestic production of such product;
(b) Safeguards Agreement means the Agreement on Safeguards, which is part of the WTO Agreement;
(c) serious injury means a significant overall impairment in the position of a domestic industry; and
(d) threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent.
Article 38. General Provisions
1. The Parties agree and reaffirm their commitments to abide by their rights and obligations under the WTO Agreement on Implementation of Article VI of the GATT 1994, the WTO Agreement on Subsidies and Countervailing Measures, Article XIX of the GATT 1994, and the Safeguards Agreement.
2. The Parties agree to carry out any action taken pursuant to this Chapter in a transparent manner.
Article 39. Co-operation and Consultation
1. Each Party shall designate one or more contact points for the purposes of this Chapter and provide details of such contact points to the other Party. The Parties shall notify each other promptly of any amendments to the details of their contact points.
2. A Party may request consultations with the other Party on matters arising from the operation of this Chapter. Such consultations shall be conducted through the relevant contact points, and shall take place within forty-five (45) days of the request, unless the Parties mutually determine otherwise.
Article 40. Anti-dumping
1. The Parties agree not to take any action pursuant to the WTO Agreement on Implementation of Article VI of the GATT 1994 in an arbitrary or protectionist manner.
2. The Parties agree that as soon as possible following the acceptance of a properly documented application from an industry in one Party for the initiation of an anti-dumping investigation in respect of products from the other Party, the Party that has accepted the properly documented application shall inform the contact point of the other Party of the acceptance of the application.
Article 41. Subsidies and Countervailing Measures
Neither Party shall introduce or maintain any form of export subsidy on any goods destined for the territory of the other Party.
Article 42. Global Safeguard Measures
1. A Party taking any measure pursuant to Article XIX of the GATT 1994 and the Safeguards Agreement may exclude imports of an originating product from the other Party from the action if such imports are non-injurious.
2. A Party shall advise the relevant contact points of the other Party of any safeguard action on the initiation of an investigation and the reasons for it.
Article 43. Bilateral Safeguard Measures
1. A Party shall have the right to initiate a bilateral safeguard measure on a product within the transition period for that product. The transition period for a product shall begin from the date of entry into force of this Agreement and end five (5) years from the date of completion of tariff elimination for that product.
2. A Party shall be free to take a bilateral safeguard measure, if, as a result of the reduction or elimination of a customs duty under this Agreement, an originating product of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating product from the other Party constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive product. Such Party may apply a safeguard measure as set by increasing the tariff rate applicable to such originating product during the transition period to the WTO MFN tariff rate applied to such product at the time when the measure is taken.
3. In applying the bilateral safeguard measure, the Parties shall adopt the rules for the application of safeguard measures as provided for under the Safeguards Agreement with the exception of the quantitative restriction measures set out in Article 5 of the Safeguards Agreement, and Articles 9, 13 and 14 of the Safeguards Agreement. As such, all other provisions of the Safeguards Agreement shall, mutatis mutandis, be incorporated into and form an integral part of this Agreement.
4. Notwithstanding the above, no safeguard measure shall be applied against a product originating in a Party as long as its share of the total imports of the product concerned in the importing Party does not exceed 3%.
5. The safeguard measure may be maintained for an initial period of up to three (3) years and may be extended for a period not exceeding one (1) year. Notwithstanding the duration of a safeguard measure on a product, such measure shall terminate at the end of the transition period for that product.
6. Upon the termination of the measure, the tariff rate applicable to the originating product shall be the rate which would have been in effect but for the measure.
7. The Party applying a measure described in paragraph 1 shall, in consultation with the other Party, provide to the other Party mutually agreed trade liberalising compensation in accordance with Article 8 of the Safeguards Agreement. The form of concessions shall have substantially equivalent trade effects or be equivalent to the value of the additional duties expected to result from the measure. If the Parties are unable to agree on compensation within forty-five (45) days in the consultations under paragraph 3, the Party against whose originating product the measure is applied may take action with respect to originating products of the other Party that has trade effects substantially equivalent to the measure. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects, and in any event, only while the measure under paragraph 1 is being applied.
8. When applying a bilateral safeguard measure, a Party shall not have simultaneous recourse to the WTO safeguard measures referred to in Article 42 (Global Safeguard Measures).
Chapter 7. Technical Barriers to Trade, Sanitary and Phytosanitary Measures
Article 44. Definitions
1. The definitions in Annex A of the WTO Agreement on Application of Sanitary and Phytosanitary Measures (the "SPS Agreement") and Annex 1 of the WTO Agreement on Technical Barriers to Trade (the "TBT Agreement") shall apply to this Chapter.
2. All definitions provided in the Annexes to this Chapter shall apply only to the respective Annexes.
3. For the purposes of this Chapter:
(a) SPS refers to sanitary and phytosanitary measures; and
(b) TBT refers to technical barriers to trade.
Article 45. Objectives
The objectives of this Chapter are:
(a) to improve the implementation of the SPS Agreement and the TBT Agreement between the Parties, so as to avoid unnecessary barriers to bilateral trade, to promote and facilitate bilateral trade, while protecting human, animal or plant life or health or fulfilling other legitimate objectives (7);
(b) to strengthen mutual understanding of the Parties' administrative systems by establishing a framework for communication and cooperation, and to resolve relevant issues arising from bilateral trade in a prompt and efficient manner, to expand the opportunities for bilateral trade.
Article 46. Scope and Coverage
This Chapter applies to all sanitary and phytosanitary measures, technical regulations, standards and conformity assessment procedures of a Party which may, directly or indirectly, affect trade between the Parties.
Article 47. Competent Authorities and Contact Points
1. The competent authorities of the Parties are the authorities responsible for the implementation of this Chapter. The contact points of the Parties are the agencies responsible for the communication and notification of information between the Parties, as specified in Annex 4 (Contact Points for TBT and SPS).
2. The Parties shall notify each other of any significant change in the structures, organisations and divisions of the competent authorities and contact points.
Article 48. Reaffirmation
The Parties reaffirm their existing rights and obligations with respect to each other under the TBT Agreement and the SPS Agreement.
Article 49. Regionalisation
1. The Parties agree to properly and actively resolve the quarantine issues of concern to each other related to the import and export of agricultural products of both Parties in accordance with Article 6 of the SPS Agreement.
2. The exporting Party may request the importing Party to recognise its pest-free or disease-free status in all or part of its territory. The importing Party shall give favourable consideration to such request and, following an assessment, may agree to recognise such pest-free or disease-free status of the exporting Party in accordance with paragraph 1. After confirmation of the pest-free or disease-free status, the importing Party shall allow agricultural products originating from these areas of the exporting Party into its markets, in accordance with the importing Party's SPS requirements.
3. If the importing Party considers that a risk with respect to a disease or pest outbreak may exist in a part or parts of the territory of the exporting Party where agricultural products destined for the importing Party originate, the importing Party may request the exporting Party to reaffirm this free status. The importing Party may also request the exporting Party to take specific eradication and control measures to ensure that the free status is maintained and to ensure that agricultural products originated therein meet the SPS requirements of the importing Party.
4. Any agreement or arrangement on regionalisation which may be concluded between the Parties under this Agreement shall be placed in the Annexes in accordance with Article 58 (Final Provisions on Annexes).
Article 50. Exchange of Information and Cooperation
1. The Parties shall strengthen the exchange of information and cooperation in the areas of mutual interest relating to TBT and SPS, such as:
(a) inspection and quarantine of animals, plants and their products;
(b) quality and safety control of products;
(c) procedure and processing period of approval of food establishments;
(d) technical regulations, standards and conformity assessment procedures; and
(e) sharing of experience in the implementation of the principle of transparency by their respective enquiry points under the TBT Agreement and SPS Agreement.
2. Each Party shall, on request, give positive consideration to proposals to supplement existing co-operation on standards, technical regulations and conformity assessment procedures. Such co-operation, which shall be on mutually agreed terms and conditions, may include but are not limited to advice or technical co-operation relating to the development or application of standards, technical regulations and conformity assessment procedures.
3. The Parties shall strengthen co-operation and communication of experience and expertise in addressing TBT and SPS measures affecting both Parties.
Article 51. International Standards
1. The Parties shall use international standards, or the relevant parts of international standards, as a basis for their technical regulations and related conformity assessment procedures where relevant international standards exist or their completion is imminent, except when such international standards or their relevant parts are ineffective or inappropriate to fulfil legitimate objectives.
2. The Parties shall co-operate with each other, where appropriate, in the context of their participation in international standardising bodies, to ensure that international standards developed within such bodies, that are likely to become a basis for technical regulations, are trade facilitating and do not create unnecessary obstacles to international trade.
3. The Parties shall strengthen communications and co-ordination with each other, where appropriate, in the context of discussions on standards and related issues in the TBT Committee under the TBT Agreement and the SPS Committee under the SPS Agreement and other relevant international or regional fora.
Article 52. Conformity Assessment Procedure
1. The Parties recognise the differences between their legal systems regarding conformity assessment and agree to discuss the possibility of mutual recognition of conformity assessment in accordance with the TBT Agreement.
2. The Parties shall exchange information on conformity assessment procedures including testing, inspection, certification, accreditation and metrology with a view to promoting the recognition of conformity assessment procedures between the Parties.
3. A Party shall give favourable consideration to a request by the other Party to recognise the conformity assessment procedures conducted by bodies in the other Party's territory through a mutual recognition agreement or arrangement.