d) packing, repacking, wrapping, repacking and repacking, or repacking for retail sale or packaging for transportation;
e) the application of trademarks, labels or similar distinctive signs;
f) cleaning, including the removal of rust, grease, paint or other coatings; and
g) the assembly of non-originating parts and components to form a completely disassembled good that are classified as a good in accordance with General Rule 2(a) of the Harmonized System. The above shall not apply to goods that had already been assembled, and subsequently disassembled for convenience of packaging, handling or transportation.
2. The modification of the price of a good, which has the purpose of evading compliance with the provisions of this chapter, does not confer origin to the good.
3. The provisions of this article shall prevail over the specific rules set forth in Annex 6-03.
Article 6-17. Transshipment and Direct Shipment.
A good shall not be considered as originating, even if it has been produced in accordance with the requirements of Article 6-03 if, subsequent to such production, outside the territories of the Parties, the good:
a) undergoes further processing, is the subject of another production process, or any other operation outside the territories of the Parties, except unloading, reloading or any other operation necessary to preserve the good in good condition or to transport it to the territory of the other Party; or
b) does not remain under the control or supervision of the customs authority in the territory of a non-Party.
Article 6-18. Determination of the Origin of Goods
When there are different rates of tariff reduction. The determination of the origin of goods with different tariff reduction rates shall be subject to the provisions of Annex 3 -04(5).
Article 6-19. Regional Input Integration Committee.
1. The parties establish the regional input integration committee (CIRI).
2. Each party shall appoint two representatives from the public sector and two representatives from the private sector to the CIRI.
3. The CIRI shall operate for a term of 10 years from the entry into force of this treaty. This term may be extended by consensus between the parties.
Article 6-20. Functions of the CIRI
1. The CIRI will evaluate the actual and documented inability of a producer of goods in the territory of the Parties to have available in terms of timeliness, volume, quality and price, the materials referred to in paragraph 3 used by the producer in the production of a good.
2. For purposes of paragraph 1, producer means a producer of goods for export to the territory of another Party under preferential tariff treatment.
3. In relation to materials used in the production of a good referred to in paragraph 1:
a) are those used by the producer in the production of a good classified under the Harmonized System listed in Annex 6 -20; and
b) its use is required by the rule of origin established in Annex 6 -03, for that good.
4. Annex 6-20 may be modified at any time by consensus among the Parties.
Article 6-21. Procedure
1. For the purposes of Article 6-20, the CIRI shall conduct an investigation procedure that it shall initiate at the request of a Party or the Commission. This procedure shall commence within five days of receipt of the request and the documentation supporting it.
2. In the course of this procedure, CIRI will evaluate the evidence submitted to it.
Article 6-22. Deadlines, Opinion and Notification of CIRI.
1. CIRI will issue an opinion to the Commission within the following deadlines, counted from the date of initiation of the investigation procedure:
a) within 30 days in the event of an unjustified interruption in the supply of materials; or
b) within 60 days in all other cases.
2. CIRI will rule:
a) on the producer's inability to dispose of materials in the terms indicated in paragraph 1 of article 6-20; and
b) when the inability referred to in subparagraph a) is established, on the terms and conditions of the waiver required in the use of the materials referred to in paragraph 3 of Article 6-20, in order for a good to receive preferential tariff treatment.
3. CIRI shall send its opinion to the Commission within five days of its issuance.
Article 6-23. Resolution of the Commission.
1. If CIRI issues an opinion under the terms of Article 6-22, the Commission shall issue a resolution within a period of no more than 10 days from receipt of the opinion, unless it agrees to a different period.
2. When the incapacity referred to in paragraph 1 of Article 6 -20 is established, the resolution of the Commission shall establish a waiver, under the terms and conditions agreed by CIRI in its opinion, for the use of the materials referred to in paragraph 3 of Article 6-20, with such modifications as it deems appropriate.
3. If the Commission has not taken a decision within the time limit set forth in paragraph 1, the opinion of CIRI shall be deemed ratified and the case resolved.
4. The resolution referred to in paragraph 2 shall be valid for a maximum of one year from the date of its issuance, depending on the reasons for the shortage for which it was issued. At the request of the interested Party and within 90 days prior to its expiration, the Commission may extend, after review by CIRI, its resolution for an equal period of time if the causes that gave rise to it persist.
5. The resolution referred to in paragraph 4 may:
a) refuse to grant the waiver; or
b) grant a waiver in accordance with the provisions of paragraph 2.
6. Any Party may request, at any time during its term, the review of the Commission's resolution.
Article 6-24. Referral to the Commission
1. If the CIRI does not issue the opinion referred to in Article 6-22 within the time limits established therein, because there is no consensus on the case in question, the consultations referred to in Article 19-05 shall be deemed concluded and the case shall be referred to the Commission within five days following the expiration of that time limit.
2. If the Commission does not issue a resolution, the provisions of articles 19-07 to 19-12 and 19-14 to 19-16 shall apply, in accordance with the provisions of paragraphs 3 to 17 of this article.
3. For the purposes of paragraph 2, the time limit for the installation of the arbitral tribunal referred to in Article 19-09 shall be 20 days, counted from the day following the day on which the request for the installation of the arbitral tribunal was filed; and the time limit for the issuance of the final decision referred to in Article 19-14 shall be 40 days, counted from the day following the day on which the arbitral tribunal was installed.
4. For the purposes of paragraph 2, it shall be understood that the mission of the arbitral tribunal shall be to render a decision in terms of Article 6-22, paragraph 2, subparagraphs a) and b).
5. The final decision of the arbitral tribunal shall be binding on the Parties and, if it decides on the waiver referred to in paragraph 2(b) of Article 6-22, shall be valid for a maximum of one year. At the request of the Party concerned, within 90 days prior to its expiration and after review by the CIRI, the Commission may extend, depending on the cause of shortage for which the waiver was issued, the decision of the arbitral tribunal for an equal term, if the causes that gave rise to it persist.
6. The complaining Party may invoke the provisions of Article 19-16, paragraphs 1 to 3, if the arbitral tribunal rules in its favor and the Party complained against fails to comply with the final decision within the period of time fixed by the arbitral tribunal.
The Party complained against may invoke the provisions of paragraphs 4 and 5 of article 19-16.
Article 6-25. Operating Regulations.
The application and administration of the provisions of Articles 6-19 to 6-25 shall be developed in the Regulations to be adopted by the Commission.
Article 6-26. Rules of Origin Applicable to Flexibility Levels Temporary.
The rule of origin applicable to temporary flexibility levels shall be determined in accordance with Annex 6-26.
Chapter VII. CUSTOMS PROCEDURES FOR HANDLING THE ORIGIN OF GOODS
Article 7-01. Definitions
1. For the purposes of this chapter, the following definitions shall apply:
competent authority: the authority responsible for the application of the provisions of this chapter, as set forth in Annex 7 -01;
identical goods: goods that are alike in all respects, including their physical characteristics, quality and commercial prestige; where minor differences in appearance do not prevent goods that otherwise meet their definition from being considered identical; and that are not relevant to the determination of their origin under Chapter VI;
advance criterion: a resolution issued by the competent authority, in accordance with article 7-10;
exporter: a person located in the territory of a Party from which the good is exported who, under this Chapter, is required to keep in the territory of that Party the records referred to in paragraph 1(a) of Article 7- 06;
commercial importation: the importation of a good into the territory of a Party for the purpose of sale or use for commercial, industrial or similar purposes;
importer: a person located in the territory of a Party into which the good is imported who, under this Chapter, is required to keep in the territory of that Party the records referred to in paragraph 1(c) of Article 7- 06;
producer: a producer, according to article 6 -01, located in the territory of a Party, who according to this chapter, is obliged to keep in the territory of that Party, the records referred to in paragraph 1 (a) of article 7 - 06;
Determination of origin ruling: a ruling issued by the competent authority as a result of a verification that establishes whether a good qualifies as originating, in accordance with Chapter VI;
preferential tariff treatment: the application of the corresponding tariff rate or duty to an originating good, in accordance with the Tariff Relief Program agreed between the Parties; value: the value of a good or material for purposes of the application of Chapter VI; and
customs value: the value of a good for the purpose of calculating customs duties in accordance with the legislation of each Party.
2. In addition to the definitions set forth in this article, the definitions set forth in Chapter VI shall be applicable.
Article 7-02. Declaration and Certification of Origin.
1. For the purposes of this Chapter, the Parties shall develop a single format for the certificate of origin and a single format for the declaration of origin, which shall enter into force in conjunction with this Agreement, and may be subsequently modified by agreement between the Parties.
2. The certificate of origin shall serve to certify that a good being exported from the territory of one Party to the territory of another Party qualifies as originating.
3. A certificate of origin shall be considered valid when it is drawn up in the format referred to in this Article and when it is completed and signed by the exporter of the good In the territory of a Party, in accordance with the provisions of this Chapter and with the provisions of its instructions for completion.
4. Each Party shall provide that its exporters shall complete and sign a certificate of origin in respect of the export of a good for which an importer may claim preferential tariff treatment, except as provided in Article 7 -05.
5. Each Party shall provide that when an exporter is not the producer of the good, it shall complete and sign the certificate of origin on the basis of:
a) its knowledge that the property qualifies as originating; or
b) the declaration of origin covering the good being exported. This must be completed and signed by the producer of the good and voluntarily provided to the exporter.
6. Each Party shall provide that the certificate of origin completed and signed by the exporter shall cover:
a) a single importation of one or more goods; or
b) several imports of identical goods to be made within a period specified by the exporter in the certificate of origin, which shall not exceed the period set forth in paragraph 7.
7. Each Party shall provide that the certificate of origin shall be accepted by the competent authority of the importing Party for a period of one year from the date of signature.
Article 7-03. Bligations with Respect to Imports.
1. Each Party shall require an importer claiming preferential tariff treatment for a good imported into its territory from the territory of another Party to:
a) declare in writing, in the import declaration provided for in its legislation, on the basis of a valid certificate of origin in the terms of paragraph 3 of Article 7 -02, that the good qualifies as originating;
b) has the certificate of origin in its possession at the time the declaration is made; and
c) provide a copy of the certificate of origin when requested by your competent authority.
2. Each Party shall provide that, when the importer that has requested preferential tariff treatment has reason to believe that the certificate of origin on which its import declaration is based contains incorrect information, it shall submit a corrected declaration and pay the corresponding customs duties. The importer shall not be penalized when he voluntarily files the aforementioned declaration before the competent authority has initiated the exercise of its verification powers.
3. Each Party shall provide that, where its importer fails to comply with any of the requirements set out in paragraphs 1 and 2, preferential tariff treatment shall be denied to the good imported from the territory of another Party for which the preference was claimed.
4. Each Party shall provide that, when preferential tariff treatment has not been requested for a good imported into its territory and it is subsequently determined that the good qualifies as originating, the importer of the good, within one year from the date of importation, may request a refund of duties paid in excess because preferential tariff treatment was not granted to the good, provided that the request is accompanied by:
a) a written statement that the good qualified as originating at the time of importation;
b) a copy of the certificate of origin; and
c) documentation related to the importation of the good, as required by the legislation of that Party.
Article 7-04. Obligations with Respect to Exports.
1. Each Party shall provide that its exporter or producer, who has completed and signed a certificate or declaration of origin, shall deliver a copy of the certificate or declaration of origin, if any, to its competent authority upon request.
2. Each Party shall provide that its exporter or producer who has completed and 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, all persons to whom the certificate or declaration has been given, and in accordance with its legislation, its competent authority, of any change that may affect the accuracy or validity of the certificate or declaration of origin, in which case he shall not be penalized for having submitted an incorrect certificate or declaration.
3. The competent authority of the exporting Party shall inform the competent authority of the importing Party in writing of the notification of the exporter or producer referred to in paragraph 2.
4. Each Party shall provide that a false certification or declaration of origin made by its exporter or producer to the effect that a good to be exported to the territory of another Party qualifies as originating shall have the legal consequences determined by the legislation of each Party that would apply to its importer who makes false declarations or representations in contravention of its domestic laws and regulations.
Article 7-05. Exceptions
Provided that it is not part of two or more imports made or planned for the purpose of evading compliance with the requirements of Articles 7 -02 and 7-03, the Parties shall not require the certificate of origin when:
a) the importation for commercial purposes of goods the customs value of which does not exceed US$1,000 or its equivalent in national currency or such greater amount as any Party may establish, but the invoice may be required to contain a declaration that the good qualifies as originating;
b) the importation for non-commercial purposes of goods the customs value of which does not exceed US$1,000 or its equivalent in national currency or such greater amount as may be established by a Party; and
c) the importation of a good for which the importing Party has waived the requirement to present the certificate of origin.
Article 7-06. Accounting Records.
1. Each Party shall provide that:
a) its exporter or producer who completes and signs a certificate or declaration of origin retains, for at least five years after the date of signature of that certificate or declaration, all records and documents relating to the origin of the good, including those relating to:
i) the acquisition, costs, value and payment of the good that is exported from its territory;
ii) the acquisition, costs, value and payment of all materials used in the production of the good being exported from its territory; and
iii) The costs and production value of the goad in the form in which it is exported from its territory;
b) for the purposes of the verification procedure established in Article 7-07, the exporter or producer shall provide the competent authority of the importing Party with the records and documents referred to in subparagraph a). When the records and documents are not in the possession of the exporter or producer, the exporter or producer may request the records and documents from the producer or supplier of the materials to be delivered through him to the competent authority carrying out the verification; and
c) an importer who obtained preferential tariff treatment for a good imported into its territory from the territory of another Party, retains, for at least five years from the date of importation, the certificate of origin and all other documentation relating to the importation required by the importing Party.
Article 7-07. Procedures to Verify Origin.
1. The importing Party may request from the exporting Party information regarding the origin of a good through its competent authority.
2. In order to determine whether a good imported into the territory of a Party from the territory of another Party under preferential tariff treatment qualifies as originating, the importing Party may, through its competent authority, verify the origin of the good by:
a) written questionnaires addressed to exporters or producers in the territory of another Party;
b) verification visits to an exporter or producer in the territory of another Party, for the purpose of examining the records and documents evidencing compliance with the rules of origin in accordance with Article 7-06, and inspecting the facilities used in the production of the good and, if applicable, those used in the production of the materials; or
c) other procedures agreed upon by the Parties. The verification process referred to in this paragraph shall be made known to the competent authority of the exporting Party.
3. For the purposes of this Article, shipments and notifications made by the competent authority of the importing Party, which carries out the verification of origin to exporters or producers of another Party, may be made through the competent authority of the exporting Party or directly by any of the following means:
a) certified mail with return receipt requested;
b) any other means of recording receipt of such document by the exporter or producer; or
c) any other means agreed upon by the Parties.
In the event that the dispatches and notifications have been sent through the competent authority of the exporting Party, the latter shall send to the competent authority of the importing Party the acknowledgement of receipt or any other document evidencing receipt by the exporter or producer of such dispatches and notifications.
4. For the purposes of the provisions of this article, shipments or notifications made at the place declared as the domicile of the exporter or producer in the certificate of origin shall be considered valid.
5. The provisions of paragraph 2 shall be without prejudice to the exercise of the powers of verification of the competent authorities of the importing Party, in relation to the fulfillment of the other obligations, over its own importers, exporters or producers.
6. The exporter or producer that receives a questionnaire pursuant to paragraph 2(a), shall answer and return it within a period of no more than 30 days from the date on which it was received. During this period the exporter or producer may request in writing to the competent authority of the importing Party an extension, which in its case shall not exceed 30 days. This request shall not result in the denial of preferential tariff treatment.
7. Each Party shall provide that when it has received the questionnaire referred to in paragraph 2(a), answered within the corresponding time limit, and considers that it requires further information to decide on the origin of the goods subject to verification, it may, through its competent authority, request additional information from the exporter or producer, through a subsequent questionnaire, in which case, the exporter or producer shall answer it and return it within a period not exceeding 30 days from the date of receipt thereof.
8. In the event that the exporter or producer does not respond in accordance with the information requested, or does not return any of the questionnaires within the corresponding term, the importing Party may deny preferential tariff treatment to the good or goods that would have been subject to the verification, by means of a written resolution addressed to the exporter or producer, which shall include the findings of fact and the legal basis for the resolution.
9. Before carrying out a verification visit pursuant to paragraph 2(b), the importing Party shall be obliged, through its competent authority, to notify in writing its intention to carry out the visit. The notification shall be sent to the exporter or producer to be visited, to the competent authority of the Party in whose territory the visit is to take place and, if so requested by the latter, to the embassy of that Party in the territory of the importing Party. The competent authority of the importing Party shall request the written consent of the exporter or producer to be visited.
10. The notification referred to in paragraph 9 shall contain:
a) identification of the competent authority making the notification;
b) the name of the exporter or producer to be visited;
c) the date and place of the proposed verification visit;
d) the purpose and scope of the proposed verification visit, making specific mention of the good or goods subject to verification referred to in the certificate or certificates of origin;
e) the names and positions of the officials who will carry out the verification visit; and
f) the legal basis for the verification visit.
11. Any modification to the information referred to in subparagraphs a), c) and e) of paragraph 10 shall be notified in writing to the exporter or producer and to the competent authority of the exporting Party prior to the verification visit. When the information referred to in subparagraphs b), d) and f) of paragraph 10 is modified, such modification shall comply with the terms established in paragraph 9.
12. If within 30 days from the date of receipt of the notification of the proposed verification visit pursuant to paragraph 9, the exporter or producer does not consent in writing to the verification visit, the importing Party may deny preferential tariff treatment to the good or goods that would have been the subject of the verification visit, by written resolution addressed to the exporter or producer, which resolution shall include the findings of fact and the legal basis for the resolution.
13. Each Party shall provide that, where its competent authority receives a notification pursuant to paragraph 9, within 15 days from the date of receipt of the notification, it shall have the authority to postpone the proposed verification visit for a period not exceeding 60 days from the date on which the notification was received, or for such longer period as the Parties may agree.
14. A Party may not deny preferential tariff treatment solely on the basis of the postponement of the verification visit pursuant to paragraph 13.
15. Each Party shall allow the exporter or producer whose good or goods are the subject of a verification visit to designate two observers to be present during the visit, provided that the observers shall act only in that capacity. Failure by the exporter or producer to designate observers shall not have the effect of postponing the visit.
16. The competent authority of the importing Party shall draw up a record of the visit containing the facts found by it. Said report may be signed by the producer or exporter and the observers designated by them.
17. If the exporter or producer has determined the regional value content of a good or goods, based on the transaction value method set out in paragraph 2 of Article 6 -04, and the competent authority of the importing Party notifies him, during the course of a verification of origin, that the transaction value of the good or goods used Is not admissible in accordance with paragraphs 5 and 6 of Article 6-04, the exporter or producer may submit to that authority such additional information that deemed necessary to demonstrate the transaction value within 30 days of receipt of the notice.
18. If, after analyzing the information provided in accordance with paragraph 17, the competent authority of the importing Party does not accept the regional value content so determined, it may recalculate this value in accordance with the provisions of Articles 2 to 5 of the Customs Valuation Code. In the event that the value cannot be determined in accordance with said Articles, the competent authority of the importing Party shall ask the producer or exporter whether it wishes the value to be recalculated on the basis of Articles 6 or 7 of the Customs Valuation Code, in which case the producer or exporter shall expressly state in writing its acceptance to have the value so recalculated, within 60 days following the date on which the corresponding notification is made, or within such longer period as the competent authority itself may expressly determine; in the event of non-acceptance, the competent authority of the importing Party may deny preferential tariff treatment to the good or goods subject to the verification.
19. Each Party shall provide that:
a) in the event that the exporter or producer fails to provide the records and documents referred to in subparagraph b) of Article 7-06, in the course of the verification visit in the exporting Party, the competent authority of the importing Party may deny preferential tariff treatment to the good or goods subject to the verification, by means of a resolution addressed to the exporter or producer determining that preferential tariff treatment is denied with respect to such good or goods, which shall include findings of fact and the legal basis for the determination; or
b) when in the course of a verification of origin, carried out in accordance with the provisions of this article, it is not established that a material used in the production of a good is originating, such material shall be considered non-originating, for the determination of the origin of the good.
20. Each Party shall verify compliance with the regional value content requirements through its competent authority, in accordance with the generally accepted accounting principles applied in the territory of the Party from which the good has been exported.
21. When the competent authority of the importing Party determines, based on the information obtained as a result of a verification of origin, that a good or goods subject to the verification does not qualify as originating, such authority shall send to the producer or exporter, a duly grounded and motivated letter with the intention of denying preferential tariff treatment with respect to such good or goods, in which the facts or omissions known and that are cause for denial of preferential tariff treatment shall be stated, and shall grant a term of 30 days from the date of receipt of such letter, to provide the documents or records that disprove the facts or omissions stated in the letter.
22. When the competent authority of the importing Party determines, based on the information obtained as a result of a verification of origin, that the good or goods subject to the verification qualify as originating, said authority shall send to the producer or exporter, a duly substantiated and reasoned letter, notifying that the verification has been concluded.
23. Within 120 days following the date on which the 30-day period referred to in paragraph 21 ends or the date on which the written notice referred to in paragraph 22 is served, the competent authority shall issue a written determination to the exporter or producer, whose good or goods have been subject to the verification, as to whether or not the good qualifies as originating, which shall include the findings of fact and the legal basis for the determination, a copy of which shall be sent to the importer. For the issuance of such determination, the authority shall take into consideration the documents or records provided by the exporter or producer within the 30-day period referred to in paragraph 21.
24. Each Party shall provide that, where its competent authority determines that a good imported into its territory does not qualify as originating according to the tariff classification or value applied by that Party to one or more materials used in the production of the good, and this differs from the tariff classification or value applied to the materials by the Party from whose territory the good has been exported, the determination of that Party shall be effective until it notifies in writing the importer of the good and the person who has completed and signed the certificate of origin covering the good.