(b) a certificate issued by the customs authorities of the non-Party where the goods were in transit, which contains an exact description of the goods, the date and place of the loading and re-loading of the goods in that non-Party, and the conditions under which the good were placed; or
(c) in the absence of any of the above documents, any other documents that will prove the direct shipment.
3. The Parties agree to discuss, within two years of the date of entry into force of this Agreement, the possibility of a mechanism allowing that originating goods, which are released into a non-Party before being exported to the other Party and did not go through working or processing beyond those defined in Article 3.6, will not lose their originating status, under conditions to be determined by the Parties.
Article 3.14. EXHIBITIONS
1. Originating goods, sent for exhibition in a non-Party other than Israel or Korea and sold after the exhibition for importation in Israel or in Korea, shall benefit on importation from the provisions of this Agreement, provided it is shown to the satisfaction of the customs authorities that:
(a) an exporter has consigned these goods from Israel or Korea to the non-Party in which the exhibition is held and has exhibited them there;
(b) the goods have been sold or otherwise disposed of by that exporter to a person in Israel or in Korea;
(c) the goods have been consigned during the exhibition or immediately thereafter in the non-Party to which they were sent for exhibition; and
(d) the goods have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.
2. A Proof of Origin must be issued or made out in accordance with the provisions of this Chapter and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition must be indicated thereon.
3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises, with a view to the sale of foreign goods, and during which the goods remain under customs control.
Article 3.15. GENERAL REQUIREMENTS
1. Goods originating in a Party shall, on importation into the other Party, benefit from preferential tariff treatment of this Agreement upon submission in accordance with the law of the importing Party of one of the following Proofs of Origin, which shall be completed in the
English language:
(a) a Certificate of Origin, a specimen of which appears in Annex 3-C; or
(b) an Origin Declaration given by:
(i) an approved exporter in accordance with Article 3.19
(ii) any exporter, where the value of the originating goods does not exceed 1,000 US dollars, in accordance with Article 3.20.
2. Notwithstanding paragraph 1, originating goods within the meaning of this Chapter shall, in the cases specified in Article 3.24, benefit from this Agreement without it being necessary to submit any of the documents referred to above.
Article 3.16. PROCEDURES FOR THE ISSUANCE OF CERTIFICATES OF ORIGIN
1. For the purposes of this Chapter, Certificate of Origin refers to either an Electronic Certificate of Origin or a Paper Certificate of Origin.
2. Certificates of Origin shall be issued by the Issuing Authorities of the exporting Party, either upon an electronic application or an application in paper form, having been made by the exporter, producer or under the exporterâs responsibility by his authorised representative, in accordance with the regulations of the exporting Party.
3. The application form of Certificate of Origin shall be made out in accordance with the law of the exporting Party. 4. The exporter, producer, or his authorised representative under the exporter's responsibility applying for the issuance of a Certificate of Origin shall be prepared to submit at any time, at the request of the customs authorities of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfillment of the other requirements of this Chapter.
5. Certificates of Origin shall be issued if the goods to be exported can be considered as goods originating in the exporting Party in accordance with this Chapter.
6. The Issuing Authorities shall take any steps necessary to verify the originating status of the goods and the fulfillment of the other requirements of this Chapter. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporterâs books or any other check considered appropriate.
7. Each Certificate of Origin will be assigned a specific number by the Issuing Authorities.
8. A Certificate of Origin shall be issued before or at the time of shipment, or within seven working days after shipment.
Article 3.17. CERTIFICATES OF ORIGIN ISSUED RETROSPECTIVELY
1. Notwithstanding Article 3.16.8, a Certificate of Origin may be issued retrospectively due to involuntary errors, omissions, or other valid causes, within one year from the date of shipment, in cases where a Certificate of Origin has not been issued before or at the time of shipment or within seven working days after shipment.
2. For the implementation of paragraph 1, the exporter, producer, or his authorised representative under the exporter's responsibility must indicate in his application the place and date of exportation of the goods to which the Certificate of Origin relates, and state the reasons for his request.
3. The issuing authorities may issue a Certificate of Origin retrospectively only after verifying that the information supplied in the application of exporter, producer, or his authorised representative under the exporter's responsibility agrees with that in the corresponding file.
4. It shall be indicated on the Certificates of Origin issued in accordance with this Article that they were issued retrospectively in the appropriate field as detailed in Annex 3-C.
Article 3.18. DUPLICATE CERTIFICATES OF ORIGIN
1. In the event of theft, loss or destruction of a Certificate of Origin in paper form, the exporter, producer, or his authorised representative under the exporter's responsibility may apply to the Issuing Authorities that issued it for a duplicate made out on the basis of the export documents in their possession.
2. It shall be indicated on the Certificates of Origin issued in accordance with this Article that they are duplicates in the appropriate field as detailed in Annex 3-C.
3. The duplicate, which shall bear the date of issue of the original Certificate of Origin, shall take effect as from that date.
Article 3.19. APPROVED EXPORTER
1. The customs authorities of the exporting Party may authorise any exporter, (hereinafter referred to as "approved exporter"), who exports goods under this Agreement, to make out Origin Declarations, a specimen of which appears in Annex 3-D-1, irrespective of the value of the goods concerned, in accordance with appropriate conditions in the respective law of the exporting Party. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the goods as well as the fulfilment of the other requirements of this Chapter.
2. The customs authorities may grant the status of approved exporter, subject to any conditions which they consider appropriate.
3. The customs authorities shall grant to the approved exporter a customs authorisation number which shall appear on the Origin Declaration.
4. The customs authorities shall monitor the use of the authorisation by the approved exporter.
5. The customs authorities may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, no longer fulfils the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorisation.
Article 3.20. CONDITIONS FOR MAKING OUT AN ORIGIN DECLARATION
1. An Origin Declaration as referred to in Article 3.15.1(b) may be made out by an approved exporter within the meaning of Article 3.19 or by any exporter where the value of the originating good does not exceed 1,000 US dollars.
2. The exporter making out an Origin Declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfilment of the other requirements of this Chapter.
3. An Origin Declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex 3-D-2. If the declaration is hand-written, it shall be written in ink in printed characters.
Article 3.21. VALIDITY OF PROOFS OF ORIGIN
1. Proofs of Origin shall be valid for 12 months from the date of issue in the exporting Party, and must be submitted within that period to the customs authorities of the importing Party.
2. Proofs of Origin which are submitted to the customs authorities of the importing Party after the final date for presentation specified in paragraph 1 may be accepted for the purposes of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.
3. In other cases of belated presentation, other than those of paragraph 2, the customs authorities of the importing Party may accept the Proofs of Origin, in accordance with the procedures of the Party where the goods have been submitted, before the said final date.
Article 3.22. SUBMISSION OF PROOFS OF ORIGIN (6)
1. Proofs of Origin shall be submitted to the customs authorities of the importing Party in accordance with the procedures applicable in that Party.
2. The customs authorities may require an importer that claims preferential tariff treatment for a good imported into its territory from the territory of the other Party to make a declaration on the import document provided for in its law, on the basis of a valid Proofs of Origin, that the good qualifies as an originating good.
3. The importing Party shall grant preferential tariff treatment to goods, in cases where the importer does not have the Proofs of Origin at the time of importation, provided that:
(a) if required by the law of the importing Party, the importer had, at the time of importation, indicated to the customs authority of the importing Party his intention to claim preferential tariff treatment; and
(b) the Proofs of Origin are submitted to the customs authority of the importing Party with the time-limit in accordance with the law of the importing Party.
Article 3.23. IMPORTATION BY INSTALLMENTS
Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled goods within the meaning of General Rule 2(a) of the Harmonized System (HS) falling within Sections XVI through XIX or headings 7308 and 9406 of the Harmonized System (HS) are imported by installments, a single Proof of Origin for such goods shall be submitted to the customs authorities upon importation of the first installment.
Article 3.24. EXEMPTIONS FROM PROOFS OF ORIGIN
1. Goods sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating goods without requiring the submission of a Proof of Origin, provided that such goods are not imported by way of trade and have been declared as meeting the requirements of this Chapter and where there is no doubt as to the veracity of such a declaration. In the case of goods sent by post, this declaration may be made on the customs declaration or on a sheet of paper annexed to that document.
2. Imports which are occasional and consist solely of goods for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the goods that no commercial purpose is in view.
3. Furthermore, the total value of these goods shall not exceed 1,000 US dollars in the case of small packages or 1,000 US dollars in the case of goods forming part of travellersâ personal luggage.
Article 3.25. SUPPORTING DOCUMENTS
1. The documents referred to in Articles 3.16.4 and 3.20.2 used for the purposes of proving that goods covered by a Certificate of Origin or an Origin Declaration can be considered as goods originating in a Party and fulfill the other requirements of this Chapter, may consist inter alia of the following:
(a) direct evidence of the processes carried out by the exporter or producer to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;
(b) documents proving the originating status of materials used, issued or made in a Party, where these documents are used in accordance with its law;
(c) documents proving the working or processing of materials in a Party, issued or made out in a Party, where these documents are used in accordance with its law;
(d) Certificates of Origin or Origin Declaration proving the originating status of materials used, issued or made out in a Party in accordance with this Chapter;
(e) appropriate evidence concerning working or processing undergone outside a Party by application of Article 3.12, proving that the requirements of that Article have been satisfied.
2. In the case where an operator, situated in a non-Party which is not the exporting Party, issues an invoice covering the consignment, that fact shall be indicated in the Certificate of Origin in accordance with Annex 3-C.
Article 3.26. PRESERVATION OF PROOFS OF ORIGIN AND SUPPORTING DOCUMENTS
1. The exporter or producer applying for the issue of the Certificate of Origin shall keep for at least five years the documents referred to in Article 3.16.4.
2. The exporter making out an Origin Declaration shall keep for at least five years a copy of this Origin Declaration, as well as the documents referred to in Article 3.20.2.
3. The Issuing Authority in the exporting Party that issued a Certificate of Origin shall keep for at least five years any document relating to the application procedure referred to in Article 3.16.3.
4. The customs authorities of the importing Party shall keep for at least five years the Certificates of Origin and the Origin Declaration or the reference numbers of electronic Certificates of Origin submitted to them.
Article 3.27. DISCREPANCIES AND FORMAL ERRORS
1. The discovery of slight discrepancies between the statements made in the Proofs of Origin and those made in the documents submitted to the customs authorities for the purposes of carrying out the formalities for importing the goods, shall not ipso facto render the Proofs of Origin null and void if it is duly established that this document does correspond to the goods submitted.
2. Obvious formal errors on a Proof of Origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.
Article 3.28. MUTUAL ASSISTANCE
1. The customs authorities of each Party shall provide each other with the addresses of the customs authorities responsible for verifying Certificates and Origin Declarations.
2. In order to ensure the proper application of this Chapter, each Party shall assist each other, through their respective customs authorities, in checking the authenticity of the Certificates of Origin and the Origin Declarations, and the correctness of the information given in these documents.
Article 3.29. VERIFICATION OF PROOFS OF ORIGIN
1. Subsequent verifications of Proofs of Origin shall be carried out at random or whenever the customs authority of the importing Party has reasonable doubts as to the authenticity of such documents, the originating status of the goods concerned or the fulfilment of the other requirements of this Chapter.
2. For the purposes of implementing paragraph 1, the customs authority of the importing Party shall return the Proofs of Origin, or a copy of these documents, to the customs authority of the exporting Party giving, where appropriate, the reasons for the request for verification. Any documents and information obtained suggesting that the information given on the Proofs of Origin is incorrect shall be forwarded in support of the request for verification.
3. The verification shall be carried out by the customs authority of the exporting Party. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's books or any other check considered appropriate.
4. If the customs authority of the importing Party decides to suspend the granting of preferential treatment to the goods concerned while awaiting the results of the verification, release of the goods shall be offered to the importer subject to any precautionary measures judged necessary.
5. The customs authority requesting the verification shall be informed of the results thereof as soon as possible. These results shall indicate clearly whether the documents are authentic and whether the goods concerned may be considered as goods originating in a party and fulfil the other requirements of this Chapter.
6. If, in cases of reasonable doubt, there is no reply within 10 months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the goods, the requesting customs authority shall, except in exceptional circumstances, refuse entitlement to the preferences.
7. If the customs authority of the importing Party is not satisfied with the results provided by the customs authority of the exporting Party, under exceptional circumstances, the customs authority of the importing Party may conduct a verification in the exporting Party by means of:
(a) written requests for additional information, documents or explanations, to the customs authority of the exporting Party, concerning the results of the above verification. Such information shall be provided no later than 90 days from the receipt of such request from the customs authority of the importing Party; or
(b) a verification visit to the premises of the exporter or producer in the exporting Party. To that purpose:
(i) the customs authority of the importing Party shall deliver a written notification in advance to the customs authority of the exporting Party regarding the intention of the importing Party to conduct a visit at the exporter or the producer's premises;
(ii) the exporting Party shall set a date of visit upon agreement from the exporter or the producer, the importing Party and the exporting Party. The visit shall be conducted no later than 90 days from the receipt of the written notification by the customs authority of the exporting Party;
(iii) officials from the exporting Party shall assist the officials from the importing Party in their visit and accompany them at the exporter's premises, unless otherwise is agreed; and
(iv) the customs authority of the importing Party conducting the verification shall provide the customs authority of the exporting Party with a written determination of whether the goods qualify as originating goods, including findings of fact and the legal basis for the determination.
8. Each Party shall maintain, in accordance with its law, the confidentiality of any information collected pursuant to this Article, and shall protect that information from disclosure that could prejudice the competitive position of the persons providing the information.
9. Information collected by a Party pursuant to this Article may only be disclosed in accordance with the law of the Parties.
Article 3.30. DISPUTE SETTLEMENT
Where disputes arise in relation to the verification procedures of Article 3.29 which camnot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out the verification or where a question is raised by one of those customs authorities as to the interpretation of this Chapter, the matter shall be submitted to the Customs Committee established by the Joint Committee in accordance with Chapter 19 (Administration of the Agreement) of this Agreement. If no solution is reached, Chapter 20 (Dispute Settlement) of this Agreement shall apply. In all cases the settlement of disputes between the importer and the customs authorities of the importing Party shall be under the law of the said Party.
Article 3.31. TRANSITIONAL PROVISIONS FOR GOODS IN TRANSIT OR STORAGE
The provisions of this Agreement may be applied to goods which comply with the provisions of this Agreement and which on the date of entry into force of this Agreement are either in transit, in the Parties, in temporary storage in customs control or in free zones, subject to the submission to the customs authorities of the importing Party, within 12 months of that date, of a Proof of Origin made out retrospectively together with the documents showing that the goods have been transported directly in accordance with Article 3.13.
Article 3.32. DEFINITIONS
for the purposes of this Chapter:
(a) aquaculture means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates, and aquatic plants, from seed stock such as eggs, fry, fingerlings, and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, protection from predators, etc;
(b) chapters, headings, and subheadings mean the chapters, the headings, and the subheadings (2-, 4- and 6-digit codes respectively) used in the nomenclature which makes up the Harmonized System (HS);
(c) CIF Value means the value of the goods at the time of importation, including freight and insurance, packing, and all other costs incurred in transporting to the port of importation;
(d) classified refers to the classification of a good or material under a particular heading or sub-heading;
(e) consignment means goods which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;
(f) customs value means the value as determined in accordance with Article VII of GATT 1994 and the Agreement on Implementation of Article VII of GATT 1994 (Customs Valuation Agreement);
(g) ex-works price means the price paid for the good ex-works to the manufacturer in a Party in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the good obtained is exported;
(h) goods means both materials and products; Issuing Authorities refers to:
(i) for Korea, the Korea Customs Service and the Korea Chamber of Commerce and Industry; and
(ii) for Israel, the Customs Directorate of the Israel Tax Authority of the Ministry of Finance.
(j) manufacture means any kind of working or processing, including assembly or specific operations;
(k) material means any ingredient, raw material, component or part, etc., used in the manufacture of the good;
(l) value of non-originating materials means the customs value at the time of importation of the non-originating materials used, or, if it is not known, its equivalent in accordance with Article VII of GATT 1994 and the Agreement on Implementation of Article VII of GATT 1994 (Customs Valuation Agreement);
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 4.1. OBJECTIVES
The objectives of this Chapter are to:
(a) simplify customs procedures of the Parties;
(b) ensure predictability, consistency and transparency in the application of customs laws, regulations and administrative procedures of the Parties;
(c) to the extent possible, ensure the efficient and expeditious clearance of goods; (d) facilitate trade between the Parties; and (e) promote cooperation between the customs administrations, within the scope of this Chapter.
Article 4.2. CUSTOMS COOPERATION
1. The Parties shall cooperate in order to ensure:
(a) the implementation and operation of the provisions of this Agreement governing importations or exportations, including claims for preferential tariff treatment, procedures for making claims for preferential tariff treatment, and verification procedures;
(b) tariff classification, and the implementation and operation of the Customs Valuation Agreement;
(c) restrictions or prohibitions on imports or exports; and (d) other customs matters as the Parties may agree.
2. Each Party shall designate official contact points and provide details thereof to the other Party, with a view to facilitating the effective implementation of this Chapter and Chapter 3 (Rules of Origin). If a matter cannot be resolved through the contact points, it shall be referred to the Committee on Customs as set out in this Chapter.
Article 4.3. RELEASE OF GOODS
Each Party shall endeavor to ensure that its customs authority adopt or maintain procedures that:
(a) provide for the release of goods within a period no greater than that required to ensure compliance with its laws and regulations;
(b) provide for advance electronic submission and processing of information before the physical arrival of goods to enable their release upon arrival; and
(c) allow goods to be released at the point of arrival, without temporary transfer to warehouses or other facilities.
Article 4.4. EXPRESS SHIPMENTS
Each Party, according to its laws, regulations and procedures, shall adopt or maintain expedited customs procedures for express shipments while maintaining appropriate customs control and selection. These procedures shall:
(a) provide a separate and expedited customs procedure for express shipments;
(b) provide for information necessary to release an express shipment to be submitted and processed electronically before the shipment arrives;
(c) allow submission of a single manifest covering all goods contained in an express shipment, through, if possible, electronic means;
(d) to the extent possible, provide for certain goods to be cleared with minimum ot alternative documentation; and
(e) provide for expeditious release of express shipments within a period no greater than that required to ensure compliance with its law.
Article 4.5. RISK MANAGEMENT
1. In administering customs procedures, each customs authority shall focus resources on high-risk shipments of goods.
2. The above shall not preclude a Party from conducting quality control and compliance reviews, which may require more extensive examinations.
Article 4.6. AUTHORISED ECONOMIC OPERATOR
Each Party shall promote the implementation of the Authorised Economic Operator (hereinafter referred to as "AEO") concept according to the WCO SAFE Framework of Standards. Acknowledgment of the AEO security status shall be taken into account by the Parties in order to secure the international trade supply chains. In this respect, trade facilitation benefits shall be provided by the customs authority of an importing Party to operators meeting customs security standards and having AEO status granted by the customs authority of any Party.
Article 4.7. TRANSPARENCY
Each party shall promptly publish or otherwise make publicly available, including on the Internet, its laws, regulations, administrative procedures, and administrative rulings of general application on customs matters that pertain to or affect the operation of this Agreement, so as to enable interested persons to become acquainted with them.
Article 4.8. PAPERLESS CUSTOMS PROCEDURES
Each Party recognises that electronic filing in trade and in transferring of trade-related information and electronic versions of documents is an alternative to paper-based methods that will significantly enhance the efficiency of trade through reduction of cost and time. Therefore, each Party shall cooperate with a view to implementing and promoting paperless customs procedures.