(b) it is demonstrated to the satisfaction of the authorized body that a Certificate of Origin was issued but was not accepted at importation for technical reasons. The validation period shall remain the same as indicated in the certificate originally issued.
Article 39. Exemption of Certificate of Origin
1. A Declaration of Origin, in the format as set out in Section B (Declaration of Origin) Annex 5 (Certificate of Origin and Declaration of Origin), may be completed by the exporter or producer and shall be accepted instead of a Certificate of Origin for any consignment whose customs value does not exceed US$ 600 or its equivalent in the currency of the importing Party, or such higher amount as that Party may establish.
2. A Declaration of Origin shall cover the goods presented under a single import Customs Declaration and shall remain valid for one year from its date of issuance.
3. Notwithstanding paragraph 1, where an importation forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of circumventing the requirements of this Section, the importing Party may deny preferential tariff treatment.
Article 40. Authorized Bodies
1. A Certificate of Origin shall be issued only by an authorized body in the exporting Party.
2. The competent authority of each Party shall inform the competent authority of the other Party of the name of each authorized body, as well as their relevant contact details, and shall provide impression specimens of the stamps, as well as details of any security features for relevant forms and documents used by each authorized body prior to the issuance of any certificates by that body. Any change in the information provided above shall be communicated in advance to the competent authority of the other Party.
3. The authorized body shall be held accountable to ensure that the information included in the Certificate of Origin corresponds to the goods covered by the Certificate of Origin and that the originating status of the goods, as required under this Chapter, is correct.
Article 41. Obligations Regarding Importations
1. Except as otherwise provided in this Chapter, each Party shall require an importer in its territory that claims preferential tariff treatment to:
(a) make a written statement in the customs declaration, based on a valid Certificate of Origin, indicating that the good qualifies as an originating good;
(b) hold the Certificate of Origin at the time the statement referred to in subparagraph (a) is made;
(c) hold the documents which certify that the requirements established in Article 36 (Direct Transport) have been met, where applicable; and
(d) submit the valid Certificate of Origin, as well as the documents indicated in subparagraph (c) to the customs authority, when it is required.
2. When an importer has reason to believe that a Certificate of Origin on which a statement was based contains incorrect information, the importer shall make a corrected statement and pay any customs duty owed, before a verification process is initiated.
3. When the importer does not comply with any requirements under this Article and any other requirements under this Chapter, the preferential tariff treatment shall be denied for the goods imported from the territory of the exporting Party.
Article 42. Refund of Import Customs Duties or Deposit
1. Where an originating good is imported into the territory of a Party without a valid Certificate of Origin under this Agreement, the importer may apply for a refund of any excess import customs duties paid or deposit imposed, where applicable, within one year for the duties paid or within 3 months or such longer period not greater than one year as specified in the legislation of the importing Party for the deposit imposed, after the date on which the good was imported, on presentation of:
(a) the valid Certificate of Origin, which shall comply with Article 38 (Certificate of Origin); and
(b) other documentation related to the importation of the good as the customs authority of the importing Party may require;
provided that the importer provides a written declaration at the time of importation that the good presented qualifies as an originating good.
2. No customs duties or deposit shall be refunded in the case where the importer failed to declare to the customs authority of the importing Party, at the time of importation, that the good was an originating good under this Agreement, even though a valid certificate was provided to the customs authority subsequently.
Article 43. Supporting Documents
The documents used for the purpose of proving that the goods covered by a Certificate of Origin can be considered as originating goods and fulfill the other requirements of this Chapter may include, but are not limited, to the following:
(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal book-keeping;
(b) documents proving the originating status of the materials used, where these documents are used in accordance with the domestic legislation;
(c) documents proving the working or processing of materials, where these documents are used in accordance with the domestic legislation; or
(d) Certificates of Origin proving the originating status of the materials used.
Article 44. Preservation of Certificate of Origin and Supporting Documents
1. The exporter applying for the issuance of a Certificate of Origin shall keep for at least 3 years the documents referred to in Article 43 (Supporting Documents), from its date of issuance.
2. The authorized bodies of the exporting Party issuing a Certificate of Origin shall keep a copy of the Certificate of Origin for at least 3 years, from its date of issuance.
Article 45. Verifications Process
1. For purposes of determining whether a good imported into one Party from the other Party qualifies as an originating good, the competent authority of the importing Party may conduct a verification process by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer through the competent authority of the exporting Party;
(c) requests that the competent authority of the exporting Party assists in verifying the origin of the good;
(d) or, in the case where any request under subparagraphs (a), (b) or (c) fails to satisfy the concern of the importing Party, that Party may request on-site visits to observe the verification process conducted by the competent authority of the exporting Party in the premises of the exporter or producer in the territory of the exporting Party.
2. For competent authority of the importing Party and responded by the competent authority of the exporting Party shall be communicated in English.
purposes of subparagraphs 1(b) and 1(c), all the information requested by the
3. For purposes of subparagraphs 1(a) and 1(b), where the importer, exporter or producer does not answer the written request for additional information made by the importing Party, within a period of 90 days from the date on which it was received, the importing Party may deny the preferential tariff treatment.
4. For purposes of subparagraph 1(c), the competent authority of the importing Party shall provide the competent authority of the exporting Party with:
(a) the reasons why such assistance for verification is requested;
(b) the Certificate of Origin of the good, or a copy thereof; and
(c) any information and documents as may be necessary for the purpose of such request.
The competent authority of the exporting Party shall provide the competent authority of the importing Party a written statement in English, regarding the origin of the good under verification process, including the following information:
(a) description of the production process of the good;
(b) description and tariff classification of originating and non-originating materials, indicating the supplier of such materials; and
(c) detailed explanation of how the good obtained the status of an originating good.
In the cases where the competent authority of the exporting Party does not provide the written statement within 150 days from the date of request or where the written statement does not contain sufficient information, the importing Party shall determine the origin of the good based on the best information available at that moment.
5. For purposes of subparagraph 1(d), the importing Party shall notify by writing, 30 days prior to the on-site visit, the competent authority of the exporting Party of such a request.
In the case where the competent authority of the exporting Party does not give its written consent to such a request within 30 days from the receipt of the notification, the importing Party may deny the preferential tariff treatment to the relevant good.
6. The importing Party shall, within 300 days from the start of the verification process, notify the exporting Party, in writing, of the results of the determination on the origin of the good, as well as the legal basis and findings of fact, based on which the determination was made.
7. Where, at the time of importation, the customs authority of the importing Party has a reasonable doubt on the origin of the good, covered under the Certificate of Origin, the good may be released upon a deposit or the payment of duties, pending the outcome of the verification process. The above deposit or duties paid shall be refunded once the outcome of the verification process confirms that the good qualifies as an originating good.
8. A Party may suspend preferential tariff treatment to an importer on any subsequent import of a good when the competent authority had already determined that an identical good was not eligible for such treatment, until it is demonstrated that the good complies with the provisions under this Chapter.
Article 46. Development of Electronic Certification and Verification System
After 6 months from the entry into force of the Agreement, the Parties shall start the work on developing an electronic certification and verification system to ensure the effective and efficient implementation of this Section, in a manner to be jointly determined by the competent authorities of the Parties, in order to be implemented within 3 years from the entry into force of the Agreement.
Article 47. Penalties
Penalties shall be imposed in accordance with the domestic legislation of each Party for infringement on the provisions of this Chapter.
Article 48. Confidentiality
1. A Party shall maintain the confidentiality of the information provided by the other Party pursuant to this Chapter, if such other Party so request. Any violation of the confidentiality shall be treated in accordance with the domestic legislation of each Party.
2. This information shall not be disclosed without the specific permission of the person or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.
Article 49. Committee on Rules of Origin
The functions of the Committee on Rules of Origin under this Agreement shall include:
(a) ensuring the effective, uniform and consistent administration of this Chapter, and enhancing the cooperation in this regard;
(b) maintaining the Annex 4 (Product Specific Rules of Origin) on the basis of the transposition of the HS;
(c) advising the Free Trade Commission of proposed solutions to address issues related to:
(i) interpretation, application and administration of this Chapter;
(ii) calculation of the Regional Value Content; and
(iii) issues arising from the adoption by either Party of operational practices not in conformity with this Chapter that may affect adversely the flow of trade between the Parties;
(d) proposing to the Free Trade Commission for approval on the modification proposals under Article 50 (Modifications), in the event a consensus is reached between the Parties;
(e) working on the development of an electronic certification and verification system;
(f) referring the issues on tariff classification and customs valuation related to the determination of origin, to the Committee on Trade Facilitation for settlement; and
(g) studying any other origin-related matters as referred to by the Committee on Trade in Goods.
Article 50. Modifications
1. If a Party considers that there is a need to make amendments to Annex 4 (Product Specific Rules of Origin), that Party may submit a modification proposal to the other Party, along with supporting rationale and studies.
2. The other Party shall respond the results of the study on the proposal made by the requesting Party within 180 days from its submission.
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 51. Definitions
For purposes of this Chapter:
customs administration means:
(a) for China, the General Administration of Customs of the People’s Republic of China; and
(b) for Peru, National Superintendence of Tax Administration (Superintendencia Nacional de Administracion Tributaria (SUNAT)), or its successor;
customs law means any legislation administered, applied, or enforced by the customs administration of a Party;
customs procedures means the treatment applied by each customs administration to goods and means of transport that are subject to customs control; and
means of transport means various types of vessels, vehicles, aircraft and pack-animals which enter or leave the territory carrying persons, goods or articles.
Article 52. Scope and Objectives
1. This Chapter shall apply, in accordance with the Parties’ respective international obligations and domestic customs law, to customs procedures applied to goods traded between the Parties and to the movement of means of transport between the Parties.
2. The objectives of this Chapter are:
(a) to simplify and harmonize customs procedures of the Parties;
(b) to ensure predictability, consistency and transparency in the application of customs laws, including administrative procedures of the Parties;
(c) to ensure the efficient and expeditious clearance of goods and movement of means of transport;
(d) to facilitate trade between the Parties;and
(e) to promote cooperation between the customs administrations, within the scope of this Chapter.
Article 53. Competent Authorities
The competent authorities for the administration of this Chapter are:
(a) for China, the General Administration of Customs of the People’s Republic of China; and
(b) for Peru, the Ministry of Foreign Trade and Tourism.
Article 54. Facilitation
1. Each Party shall ensure that its customs procedures and practices are predictable, consistent, transparent and facilitate trade.
2. Customs procedures of each Party shall, where possible and to the extent permitted by their respective customs law, conform with the trade-related instruments of the World Customs Organization (WCO) to which that Party is a contracting party, including those of the International Convention on the Simplification and Harmonization of Customs Procedures (as amended), known as the Revised Kyoto Convention.
3. The customs administrations of the Parties shall facilitate the clearance, including release, of goods in administering their procedures.
4. Each Party shall endeavor to provide a focal point, electronic or otherwise, through which its traders may submit all required regulatory information in order to obtain clearance, including release, of goods.
Article 55. Customs Valuation
The Parties shall apply Article VII of GATT 1994 and the Customs Valuation Agreement to goods traded between them.
Article 56.
The Parties shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between them.
Article 57. Committee on Trade Facilitation
The Parties shall establish the Committee on Trade Facilitation that have, among others, the following functions:
(a) to adopt customs practices and standards which facilitate commercial exchange between the Parties, according to the international standards;
(b) to settle any disputes related to the interpretation, application and administration of this Chapter, including tariff classification. If the Committee does not reach a decision on the tariff classification, said Committee shall hold the appropriate consultations at the WCO. The decision of the WCO shall, to the greatest extent possible, be applied by the Parties; and
(c) to settle other issues as referred to the Committee on Trade Facilitation, including the issues on tariff classification and customs valuation related to the determination of origin under this Agreement.
Article 58. Customs Cooperation
To the extent permitted by their domestic laws, the customs administrations of the Parties shall assist each other, in relation to:
(a) the implementation and operation of this Chapter and the Agreement Between the Government of the People’s Republic of China and the Government of the Republic of Peru Concerning Co-Operation and Mutual Administrative Assistance in Customs Matters; and
(b) such other issues as the Parties mutually determine.
Article 59. Review and Appeal
Each Party shall ensure that with respect to its administrative acts on customs matters, importers in its territory have access to:
(a) a level of administrative review independent of the employee or office that issued the administrative act; and
(b) judicial review of the administrative acts.
Article 60. Advance Rulings
1. The customs administration of each Party shall issue written advance rulings prior to the importation of a good into its territory upon written request of an importer in its territory, or an exporter in the territory of the other Party (for China, the applicant of an advance ruling on tariff classification shall be registered with a local customs administration of China), on the basis of the facts and circumstances provided by the requester, including a detailed description of the information required to process a request for an advance ruling, concerning:
(a) tariff classification; or
(b) whetheragoodqualifiesasanoriginatinggoodundertheprovisionestablished in this Agreement.
2. The customs administrations shall issue advance rulings after receiving a written request, provided that the requester has submitted all necessary information. The issuance of advance ruling on determination of origin of a good shall be made within 150 days.
3. Each Party shall provide that advance rulings shall be in force from their date of issuance, or such other date specified by the ruling, for at least one year, provided that the facts or circumstances on which the ruling is based remain unchanged.
4. The customs administrations issuing the advance ruling may modify or revoke an advance ruling where facts or circumstances prove that the information on which the advance ruling is based is false or inaccurate.
5. Where an importer claims that the treatment accorded to an imported good should be governed by an advance ruling, the customs administrations may evaluate whether the facts and circumstances of the importation are consistent with the facts and circumstances upon which the advance ruling was based.
6. Each Party shall make its advance rulings publicly available, subject to confidentiality requirements in its domestic law, for purposes of promoting the consistent application of advance rulings to other goods.
7. If a requester provides false information or omits relevant circumstances or facts in its request for an advance ruling, or does not act in accordance with the ruling’s terms and conditions, the importing Party may apply appropriate measures, including civil, criminal, and administrative actions, penalties, or other sanctions in accordance with its domestic laws.
Article 61. Use of Automated Systems In the Paperless Trading Environment
1. The customs administrations shall apply information technology to support customs operations, where it is cost-effective and efficient, particularly in the paperless trading context, taking into account developments in this area within the WCO.
2. The customs administrations shall endeavor to use information technology that expedites procedures for the release of goods, including the submision and processing of information and data before arrival of the shipment, as well as electronic or automated systems for risk management and targeting.
Article 62. Risk Management
Each customs administration shall focus resource on high-risk shipments of goods and facilitate the clearance, including release, of low-risk goods in administering customs procedures. Additionally, customs administrations shall exchange information related to applied techniques on risk management, ensuring the confidentiality of the information.
Article 63. Publication and Enquiry Points
1. Each customs administration shall publish all customs laws and any administrative procedures it applies or enforces.
2. Each customs administration shall designate one or more enquiry points to deal with inquiries from interested persons from either Party on customs matters arising from the implementation of this Agreement, and provide details of such enquiry points to the other customs administration. Information concerning the procedures for making such inquiries shall be easily accessed to public.
3. Each customs administration will endeavor to provide the other customs administration with timely notice of any significant modification of customs laws or procedures governing the movement of goods and means of transport that is likely to substantially affect the operation of this Chapter.
Article 64. Express Consignments
Each customs administration shall adopt or maintain separate and expedited customs procedures for express shipments while maintaining appropriate customs control and selection. Said procedures shall, under normal circumstances, provide an express clearance of goods after submission of all the necessary customs documents, and shall not be limited by weight or customs value.
Article 65. Release of Goods
1. Each Party shall adopt or maintain efficient and expeditious procedures which allow goods to be released within 48 hours of arrival unless:
(a) the importer fails to provide any information required by the importing Party at the time of first entry;
(b) the goods are selected for closer examination by the customs administration of the importing Party through the application of risk management techniques;
(c) the goods are to be examined by any agency, other than the customs administration of the importing Party, acting under powers conferred by the domestic legislation of the importing Party; or
(d) fulfillment of all necessary customs formalities has not been able to be completed or release is otherwise delayed by virtue of force majeure.
2. In accordance with its national legislations and regulations, each Party shall allow importers to withdraw goods from customs before the final determination by its customs administration of the applicable customs duties, taxes, and fees provided that the sufficient guarantee is submitted to customs administrations.
Article 66. Review of Customs Procedures
1. Each customs administration shall periodically review its procedures with a view to their further simplification and the development of mutually beneficial arrangements to facilitate the flow of trade between the Parties.
2. In applying a risk management approach to customs control, each customs administration shall regularly review the performance, effectiveness and efficiency of its systems.