(d) goods obtained from hunting, trapping, fishing, aquaculture, gathering or capturing and farming conducted in the territory of the Party;
(e) micro-organisms and viruses from natural habitats or cultivate in the territory of the Party;
(f) minerals and other naturally occurring substances, not included in subparagraphs
(a) to (e), extracted or taken from its soil, water, seabed or beneath the seabed of the Party;
(g) goods of sea-fishing taken by vessels registered with a Party and entitled to fly its flag and other goods (2) extracted or taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party, provided that Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with international law;
(h) goods such as fish, shellfish and other marine life or marine goods taken from the high seas by vessels registered and entitled to fly the flag of that Party;
(i) goods obtained, processed or produced on board a factory ship registered with that Party and entitled to fly the flag of that Party, exclusively from products referred to in subparagraph (g) and (h);
(j) waste or scrap collected or derived from production in the territory of the Party and are fit only for the recovery of raw materials;
(k) used goods and goods collected there which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for disposal or recovery of parts of raw materials, or for recycling purposes; and
(l) goods obtained or produced in the territory of a Party solely from goods referred to in subparagraphs (a) to (k).
Article 4.4. Qualifying Value Content (qvc)
1. The QVC of a good shall be calculated as follows:
V-VNM
QVC = ------------------------------ x 100
V
Where:
QVC - is the qualifying value content expressed as a percentage;
V - is the FOB value of the final good; and
VNM - is the CIF value of the non-originating materials.
2. For the purposes of calculating the QVC provided in paragraph 1, VNM shall be:
(a) the CIF value at the time of importation of the goods; or
(b) the earliest ascertained price paid for the goods of undetermined origin in the territory of the Party where the working or processing takes place.
Article 4.5. Indirect Materials
Any indirect material used in the production of a good but not incorporated into the good shall be treated as originating materials, irrespective of whether such indirect material originates from a non-Party, including:
(a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used for testing or inspection of the goods;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and
(g) any other materials which are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production.
Article 4.6. Minimal Operations and Processes That Do Not Confer Origin
The following minimal operations or processes, undertaken exclusively by itself or in combination, do not confer origin:
(a) operations to ensure the preservation of products in good condition during transport and storage such as drying, freezing, keeping in brine, ventilation, chilling and like operations;
(b) sifting, classifying, washing, cutting, slitting, bending, coiling or uncoiling, sharpening, simple grinding, slicing;
(c) cleaning, including removal of dust, oxide, oil, paint or other coverings;
(d) painting and polishing operations;
(e) testing or calibration;
(f) placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(g) simple mixing of goods, whether or not of different kinds;
(h) simple assembly of parts of products to constitute a complete good;
(i) changes of packing, unpacking or repacking operations, and breaking up and assembly of consignments;
(j) affixing or printing marks, labels, logos and other like distinguishing signs on goods or their packaging;
(k) mere dilution with water or another substance that does not materially alter the characteristics of the goods;
(l) husking, partial or total bleaching, polishing and glazing of cereals and rice;
(m) disassembly; and
(n) mere making-up of sets of goods. (3)
Article 4.7. Accumulation
Unless otherwise provided in this Agreement, originating goods of a Party which are used in the processing or production in the territory of the other Party as material for finished goods, shall be deemed as an originating material in the territory of the latter Party where the working or processing of the finished goods has taken place.
Article 4.8. De Minimis
1. A good that does not undergo a change in tariff classification shall be considered as originating if:
(a) the value of all non-originating materials used in its production that do not undergo the required change in tariff classification do not exceed ten percent (10%) of the FOB value of the good; and
(b) the good meets all other applicable criteria set forth in this Chapter for qualifying as originating goods.
2. The value of non-originating materials referred to in paragraph 1 shall, however, be included in the value of non-originating materials for any applicable QVC requirement for the good.
Article 4.9. Fungible Goods and Materials
1. The determination of whether fungible goods or materials are originating goods shall be made either by physical segregation of each of the materials, or through the use of an inventory management method recognised in the GAAP of the Party in which the production is performed or otherwise accepted by that Party.
2. Once a decision has been taken on the inventory management method, the method of inventory management chosen by the exporter must be maintained throughout the fiscal year.
Article 4.10. Accessories, Spare Parts, Tools and Instructional or Information Materials
1. If the goods are subject to the requirements of a change in tariff classification or specific manufacturing or processing operation, the origin of accessories, spare parts, tools, instructional or other information materials delivered with a good that form part of the good's standard accessories, spare parts, or tools, shall be regarded as a part of the good, and shall be disregarded in determining whether or not all the non-originating materials used in the production of the originating goods undergo the applicable change in tariff classification provided that:
(a) the accessories, spare parts, tools, instructional or other information materials are classified with, and not invoiced separately from, the good; and
(b) the quantities and value of the accessories, spare parts, tools, instructional or other information materials are customary for the good.
2. If the goods are subject to QVC requirement, the value of the accessories, spare parts, tools, and instructional or information materials shall be taken into account as the value of originating or non-originating materials, as the case may be, in calculating the QVC of the goods.
Article 4.11. Treatment of Packages, Packing Materials and Containers
1. Packages and packing materials for retail sale:
(a) If a good is subject to the QVC as set out in Annex 4.2, the value of the packages and packing materials for retail sale, shall be taken into account in determining the origin of that good as originating or non-originating, as the case may be, provided that the packages and packing materials are considered to be forming a whole with the good; and
(b) If a good is subject to the change in tariff classification criterion as set out in Annex 4.2, packages and packing materials classified together with the packaged good, shall not be taken into account in determining origin.
2. The containers and packing materials exclusively used for the transport of a good shall not be taken into account for determining the origin of the said good.
Article 4.12. Direct Consignment
1. The goods shall be deemed as directly consigned from the exporting Party to the importing Party:
(a) if the goods are transported without passing through the territory of any nonParty; or
(b) if the goods are transported for the purpose of transit through a non-Party with or without transshipment or temporary storage in such non-Party, provided that:
(i) the goods have not entered into trade or consumption in the territory of the non-Party;
(ii) the transit entry is justified for geographical reason or by consideration related to transport requirements; and
(iii) the goods have not undergone any operation in the territory of the nonParty other than unloading, reloading or any operation required to keep the goods in good condition.
2. The directly consigned goods shall retain its originating status.
3. In the case where the originating goods of the exporting Party is imported through one or more non-Parties, the customs authority of the importing Party may require importers, who claim the preferential tariff treatment for the goods, to submit the following documentation to the customs authorities of the importing Party:
(a) a Through Bill of Lading or similar documents used in multimodal transportation; and
(b) supporting documents, if any, in evidence that the requirements of subparagraphs 1 (b) (i), (ii) and (iii) are being complied with.
Article 4.13. Certificate of Origin
A claim that goods are eligible for preferential tariff treatment under this Agreement shall be supported by a Certificate of Origin issued by the exporting Party in the form as prescribed in Section A of Annex 4.13 (Form of Certificate of Origin of Chile, issued by its competent authority) or Section B of Annex 4.13 (Form of Certificate of Origin of Thailand, issued by its competent authority).
Article 4.14. Committee on Rules of Origin
1. The Parties hereby establish a Committee on Rules of Origin (hereinafter referred to as "the Committee"), comprising of government representatives of each Party.
2. The functions of the Committee shall be to:
(a) monitor and review the implementation and operation of this Chapter;
(b) report its findings to the Committee on Trade in Goods in accordance with Article 3.9 (Committee on Trade in Goods);
(c) identify areas, relating to this Chapter to be improved for facilitating trade in goods between the Parties;
(d) consider any other matters as Parties may agree related to this Chapter; and
(e) carry out other functions as may be delegated by the Commission in accordance with Article 13.1.4 (Free Trade Commission).
3. The Committee shall meet at such venues and times as may be agreed by the Parties.
Section 2. Operational Procedures
Article 4.15. Certification of Origin
1. The Certificate of Origin shall be issued by the respective competent authority of each Party.
2. Each Party shall inform the other Party of the name, address, and specimen of official seals of its competent authorities, in hard copy and soft copy format. Any change in names, addresses, or seals shall be promptly informed in the same manner.
3. For the purposes of checking the Certificate of Origin:
(a) Chile shall provide websites with some key information of the Certificate of Origin issued by Chile such as Reference Number, HS code, description of goods, date of issuance, quantity and name of the exporter; and
(b) Thailand shall provide information on specimen signatures in hard or soft copy formats upon request and shall provide prompt update where appropriate.
To the best of its competence and ability, Thailand shall endeavour to provide websites in the same information as specified above by Chile. The Committee shall consult on the implementation of the websites.
4. The issued Certificate of Origin shall be applicable to a single importation of an originating good of the exporting Party into the importing Party and be valid for twelve (12) months from the date of issuance.
5. The original of the Certificate of Origin shall be submitted to customs authorities at the time the declaration of the goods is made in accordance with the respective laws and regulations of the importing Party.
6. The Parties, to the extent possible, should implement an electronic system for issuance of Certificate of Origin. The Parties also recognise the validity of the electronic signature.
Article 4.16. Certificate of Origin
1. In the case of Chile, the Certificate of Origin shall be in 216 mm x 313 mm size paper and in conformity to the form as shown in Section A of Annex 4.13.
2. In the case of Thailand, the Certificate of Origin shall be in ISO A4 size paper and in conformity to the form as shown in Section B of Annex 4.13. The Certificate of Origin shall comprise one (1) original and two (2) carbon copies (Duplicate and Triplicate). The original copy shall be forwarded by the exporter to the importer for submission to the customs authority
At the port or place of importation. The duplicate shall be retained by the competent authority in the exporting Party. The triplicate shall be retained by the exporter.
3. The Certificate of Origin shall be made in the English language.
4. Each Certificate of Origin shall bear a serial reference number separately given by each place or office of issuance.
5. Unused spaces in the Certificate of Origin shall be crossed out by the competent authority to prevent any subsequent addition.
Article 4.17. Application for Certificate of Origin
1. At the time of carrying out the formalities for exporting the goods under preferential treatment, the exporter or its authorised representative shall submit a written application for the Certificate of Origin together with appropriate supporting documents proving that the goods to be exported fulfill the originating criteria under this Agreement.
2. For the purposes of determining originating status, the competent authorities shall have the right to request supporting documentary evidence or to carry out check(s) considered appropriate in accordance with respective laws and regulations of a Party.
Article 4.18. Obligations of the Competent Authority
The competent authority shall carry out proper examination upon each application for the Certificate of Origin to ensure that:
(a) the application and the Certificate of Origin are duly completed and signed by the authorised signatory;
(b) the origin of the good is in conformity with this Agreement;
(c) other statements on the Certificate of Origin correspond to the supporting documentary evidence submitted;
(d) description, quantity and weight of goods, marks and number of packages, number and kinds of packages, as specified, conform to the goods to be exported; and
(e) multiple items declared on the same Certificate of Origin shall be allowed, provided that each item qualifies separately in its own right.
Article 4.19. Treatment of Erroneous Declaration In the Certificate of Origin
Neither erasures nor superimpositions shall be allowed on the Certificate of Origin. Any alteration shall be made by:
(a) striking out the erroneous materials and making any addition required. Such alterations shall be approved by an official authorised to sign the Certificate of Origin and certified by the competent authorities. Unused spaces shall be crossed out to prevent any subsequent addition; or
(b) issuing a new Certificate of Origin to replace the erroneous one. The new Certificate of Origin shall bear the reference number and the date of issuance of the original Certificate of Origin. The words "replaced C/O No..... issued date..... " shall be endorsed. The new Certificate of Origin shall take effect from the date of issuance of the original Certificate of Origin.
Article 4.20. Issuance of the Certificate of Origin
1. The Certificate of Origin shall be issued prior to, at the time of exportation, or no later than three (3) days after the time of exportation.
2. Where a Certificate of Origin has not been issued at the time of exportation or no later than three (3) days from the declared shipment date, due to involuntary errors or omissions or other valid causes, the Certificate of Origin may be issued retroactively but no longer than one (1) year from the date of shipment and shall be duly and prominently marked "Issued Retroactively".
Article 4.21. Loss of the Certificate of Origin
1. In the event of theft, loss or destruction of a Certificate of Origin, the exporter may apply in writing to the issuing authorities for a certified true copy to be made out on the basis of the export documents in their possession bearing the endorsement of the words "CERTIFIED TRUE COPY" in Box 14. This copy shall bear the date of issuance of the original Certificate of Origin.
2. The certified true copy shall take effect from the date of issuance of the original Certificate of Origin.
Article 4.22. Exceptions
1. In the case of consignments of goods originating in the exporting Party and not exceeding US$200 FOB, the requirement of a Certificate of Origin may be waived provided that the importation does not form part of one or more importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements of this Chapter.
2. An importation of originating goods of the exporting Party, for which the customs authority of the importing Party has waived the requirement for a Certificate of Origin.
Article 4.23. Treatment of Minor Discrepancies
1. The customs authority of the importing Party should disregard minor errors, such as slight discrepancies or omissions, typing errors or overrunning the margin of the designated field, provided that these minor errors may not affect the authenticity of the Certificate of Origin or the accuracy of the information included in the Certificate of Origin.
2. Where the origin of the goods is not in doubt, tariff classification differences between the statements made in the Certificate of Origin and those made in the documents submitted to the customs authority of the importing Party for the purposes of carrying out the formalities for importing the goods shall not ipso-facto invalidate the Certificate of Origin, if it does in fact correspond to the goods submitted. The process on claiming the preferential tariff treatment shall be subject to domestic laws and regulations.
3. For multiple items declared under the same Certificate of Origin, a problem 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.
Article 4.24. Claims for Preferential Tariff Treatment
1. For the purposes of claiming preferential tariff treatment, the importer shall submit to the customs authority of the importing Party, an import declaration, a Certificate of Origin and other documents as required in accordance with the laws and regulations of the importing Party.
2. In cases when a Certificate of Origin is rejected by the customs authority of the importing Party, the Certificate of Origin shall be marked accordingly in Box 4 and the original Certificate of Origin shall be returned to the competent authority within a reasonable period not exceeding sixty (60) days. The competent authority shall be duly notified of the grounds for the denial of preferential tariff treatment.
Article 4.25. Verification of Origin
1. For the purposes of determining whether a good imported from the exporting Party under preferential tariff treatment qualifies as an originating good of the exporting Party, the customs authority of the importing Party may request the competent authority of the exporting Party, information relating to the origin of the good, where it has reasonable doubt as to the authenticity of the Certificate of Origin or the accuracy of the information included in the Certificate of Origin.
2. Where the customs authority of the importing Party requests the information under paragraph 1, it shall provide the competent authority of the exporting Party with:
(a) the reasons why such 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 purposes of such request;
3. For the purposes of paragraph 1, the competent authority of the exporting Party shall provide the information requested within a period of six (6) months from the date of receipt of the request. If the customs authority of the importing Party considers necessary, it may require additional information relating to the origin of the good. If additional information is requested by the customs authority of the importing Party, the competent authority of the exporting Party shall, in accordance with the laws and regulations of the exporting Party, provide the information requested within a period of three (3) months from the date of receipt of the request.
4. The request of information in accordance with paragraph 1 shall not preclude the use of the verification method provided for in Article 4.26.
5. The competent authority of the exporting Party shall promptly transmit the information requested to the customs authority of the importing Party which shall then determine whether or not the goods concerned is originating. The entire process from the date of receipt of the request of the information until the notification of the result shall be completed within one hundred and eighty (180) days.
Article 4.27. Verification Visit
1. The customs authority of the importing Party may request the competent authority of the exporting Party: