spare parts and materials used in the maintenance of equipment and buildings;
lubricants, greases, compounding materials and other materials used in manufacture or used to operate equipment and buildings;
gloves, glasses, footwear, clothing, safety equipment and supplies;
equipment, devices and supplies used for testing or inspecting the materials or product; catalyst and solvent; and
other materials which are not incorporated into the final composition of the product but whose use in the production of the product can be reasonably demonstrated to be a part of that production.
Article ARTICLE 3.11
Accounting segregation
Originating and non-originating fungible materials shall be physically segregated, during storage in order to maintain their originating status.
For the purpose of this Article, fungible materials means materials that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another once they are incorporated into the finished product.
The management of materials using the accounting segregation method may be used if originating and non-originating fungible materials are used in the working or processing of a product without keeping the materials in separate stocks.
The application of the accounting segregation method for managing stocks provided for in paragraph 2 shall be pursuant to an inventory management method under accounting principles which are generally accepted in the Party.
A Party may require that the use of the accounting segregation method pursuant to this Article is subject to prior authorisation by the competent authorities of that Party. Those authorities may grant the authorisation subject to any conditions deemed appropriate and they shall monitor the use of the authorisation and may withdraw it at any time whenever its holder makes improper use of it in any manner or fails to fulfil any of the other conditions laid down in this Chapter.
The accounting segregation method shall be able to ensure that at any time no more materials receive originating status than would be the case if the materials had been physically segregated.
Article ARTICLE 3.12
Packing materials and containers for retail sale
Packaging materials and containers in which a product is packaged for retail sale, if classified
with the good, shall be disregarded in determining whether all the non-originating materials used in the production of the product have undergone the applicable change in tariff classification or a specific manufacturing or processing operation set out in Annex 3-B (Product-Specific Rules of Origin) or whether the good is wholly obtained.
If a product is subject to a value requirement set out in Annex 3-B (Product-Specific Rules of Origin), the value of the packaging materials and containers in which the product is packaged for retail sale, if classified with the good, are taken into account as originating or non-originating, as the case may be, in calculating the value requirement of the product.
Article ARTICLE 3.13
Packing materials and containers for shipment
Packing materials and containers for shipment that are used to protect a good during transportation are disregarded in determining whether a product is originating.
Article ARTICLE 3.14
Non-alteration
The originating products declared for importation in a Party shall be the same products as exported from the other Party in which they obtained originating status. They shall not have been altered, transformed in any way or subjected to operations other than to preserve them in good condition or than adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific domestic requirements of the importing Party, prior to being declared for home use.
Storage or exhibition of products may take place in a non-Party provided that they remain under customs supervision in the non-Party.
Without prejudice to the provisions of Section [XX] (Administrative Cooperation), the splitting of consignments may take place in the territory of a non-Party where carried out by the
exporter or under his responsibility provided they remain under customs supervision in the non-Party.
Compliance with paragraphs 1 to 3 shall be considered as satisfied unless the customs authorities have reason to believe the contrary; in such cases, the customs authorities may request the declarant to provide evidence of compliance, which may be given by any means, including contractual transport documents such as bills of lading or factual or concrete evidence based on marking or numbering of packages or any evidence related to the goods themselves.
Article ARTICLE 3.15
Returned goods
If originating goods exported from a Party to a non-Party return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:
the returning goods are the same as those exported; and
they have not undergone any operation beyond that necessary to preserve them in good condition while in that non-Party or while being exported.
SECTION B ORIGIN PROCEDURES
Article ARTICLE 3.17
Claim for preferential tariff treatment
The importing Party shall grant preferential tariff treatment to a product originating in the other Party within the meaning of this Chapter on the basis of a claim by the importer for
preferential tariff treatment. The importer shall bear the responsibility for the correctness of the claim for preferential tariff treatment and for the compliance with the requirements provided for in this Chapter.
(a) A claim for preferential tariff treatment shall be based on a statement on origin that the product is originating made out by the exporter.
(b) A Party may also allow in accordance with its laws and regulations that a claim for preferential tariff treatment is based on the importer’s knowledge that the product is originating.
The importer making a claim for preferential tariff treatment based on a statement on origin referred to in paragraph 2(a) shall keep the statement on origin and provide such statement to the customs authority of the importing Party in accordance with its laws and regulations.
Article ARTICLE 3.18
Time of the claim for preferential tariff treatment
The claim for preferential tariff treatment, and its basis as referred to in paragraph 2 of Article 17, shall be included in the customs declaration at import, in accordance with the laws and regulations of the importing Party
Notwithstanding paragraph 1 of this Article, if the importer did not make a claim for preferential tariff treatment at the time of importation, the importing Party shall grant preferential tariff treatment and repay or remit any excess customs duty paid provided that:
the claim for preferential tariff treatment is made within the time period specified in the laws and regulations of the importing Party;
the importer provides the basis for the claim as referred to in Article 17(2) [Claim for preferential tariff treatment]; and
the product would have been considered originating and would have satisfied all other applicable requirements within the meaning of Section A [Rules of origin] of this Chapter if it had been claimed by the importer at the time of importation.
The other obligations applicable to the importer under Article 17 [Claim for preferential tariff treatment] remain unchanged.
Paragraph 2 shall apply in both Parties after Indonesia has notified the European Union that the laws and regulations in Indonesia allow the granting of preferential tariff treatment and the repayment or remission of any excess customs duty paid after importation.
Article ARTICLE 3.19
Statement on origin
A statement on origin shall be made out by an exporter of a product on the basis of information demonstrating that the product is originating, including, when applicable, information on the originating status of materials used in the production of the product. The exporter shall bear the responsibility for the correctness of the statement on origin made out and the information provided.
A statement on origin shall be made out in one or more of the linguistic versions included in Annex XX [Text of the Statement on Origin], at least one of which is English on an invoice, or on any other document, describing the originating product in sufficient detail to enable its identification. The importing Party shall not require the importer to submit a translation of the statement on origin. The Union shall notify any other linguistic version of the statement on origin to Indonesia at the latest on the accession of a new Member State to the European Union.
A statement on origin shall be valid for 12 months from the date it was made out.
A statement on origin shall apply to a single shipment of one or more products into a Party. The customs authorities of the importing Party may allow the application of a statement on origin to multiple shipments of identical originating products that take place within a period of time that does
not exceed 12 months as set out by the exporter in that statement.
The importing Party shall, upon the request of the importer and subject to requirements and conditions provided by the Party, allow a single statement on origin to be used for unassembled or disassembled products within the meaning of General Rule 2(a) of the Harmonized System falling within Sections XVI and XVII or headings 7308 and 9406 of the Harmonized System when imported by instalments.
Paragraph 4 shall apply in both Parties after Indonesia has notified the EU that the laws and regulations in Indonesia allow the application of a statement on origin to multiple shipments of identical originating products.
Article ARTICLE 3.20
Discrepancies and minor errors
The customs authority of the importing Party shall not reject a claim for preferential tariff treatment due to minor errors or discrepancies in the statement on origin.
Article ARTICLE 3.21
Importer’s knowledge
The importer’s knowledge that a product is originating shall be based on information demonstrating that the product is originating and satisfies the requirements provided for in this Chapter.
Article ARTICLE 3.22
Record keeping requirements
An importer claiming preferential tariff treatment for a product imported into a Party shall:
in case of a statement on origin, have in his possession the statement on origin or a copy of the statement on origin made out by the exporter for a minimum of three years from the date
of the claim for preferential tariff treatment, unless longer period is required by the Parties’s laws and regulations; and
in case of importer’s knowledge, have in his possession the information demonstrating that the product satisfies the requirements to obtain originating status for a minimum of three years from the date of the claim for preferential tariff treatment, unless longer period is required by the Parties’s laws and regulations.
An exporter who made out a statement on origin shall, for a minimum of four years or unless longer period is required following the making out of that statement on origin, have in his possession copies of statement on origins and all other records demonstrating that the product satisfies the requirements to obtain originating status.
The records to be kept in accordance with this Article may be held in electronic form.
Article ARTICLE 3.23
Small consignments
In derogation to Articles 17 (Claim for Preferential Tariff Treatment) to 21 (Importer’s Knowledge), the importing Party shall grant preferential tariff treatment to:
a product sent in a small package from private persons to private persons; and
a product forming part of a traveller’s personal luggage;
when such a product has been declared as meeting the requirements of this Chapter, where the customs authority of the importing Party has no doubts as to the veracity of such declaration.
The following products are excluded from the application of paragraph 1:
a product imported by way of trade. The imports which are occasional and consist solely of products 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
products that no commercial purpose is in view;
products whose importation forms part of a series of importations that may reasonably be considered to have been made separately for the purpose of avoiding the requirements of Article 17 (Claim for Preferential Tariff Treatment); and
products for which the total value exceeds the limits set under the laws and regulations of a Party.
Each Party shall notify the limits referred to in point (c) of paragraph 2 and any subsequent modification thereof to the other Party. For the Union, the European Commission shall be responsible for those notifications.
The importer shall bear the responsibility for the correctness of the declaration and for the compliance with the requirements provided for in this Chapter. The record-keeping requirements set out in Article 22 (Record Keeping Requirements) shall not apply to the importer under this Article.
Article ARTICLE 3.24
Verification
The customs authority of the importing Party may conduct a verification whether a product is originating or the other requirements of this Chapter are met based on risk assessment methods, which may include random selection. Such verification may be conducted by means of a request for information to the importer who made the claim referred to in Article 17 (Claim for Preferential Tariff Treatment), at the time the import declaration is submitted, before the release of the products, or after the release of the products.
Pursuant to paragraph 1 the customs authority of the importing Party shall not request more than the following information:
the statement on origin referred to in paragraph 2(a) of Article 17 (Claim for Preferential Tariff Treatment), where such a statement was the basis of the claim;
information pertaining to the fulfilment of origin criteria; that information shall be, where
the origin criterion is:
‘wholly obtained’: the applicable category (such as harvesting, mining, fishing) and place of production;
based on change of tariff classification: a list of all the non-originating materials including their tariff classification (in 2, 4 or 6 digit format, depending on the origin criterion);
based on a value method: the value of the final product as well as the value of all the non-originating materials used in the production;
based on weight: the weight of the final product as well as the weight of the relevant non-originating materials used in the final product; and
based on a specific production process: a specific description of that process; and
information relating to the compliance with the provision on non-alteration referred to in Article 14 (Non-Alteration).
When providing the requested information, the importer may add any other information that he considers relevant for the purpose of verification.
If the claim for preferential tariff treatment is based on a statement on origin, the importer shall provide that statement on origin but may reply to the customs authority of the importing Party that the importer is not in a position to provide information referred to in paragraph 2(b) of this Article.
Where the claim for preferential tariff treatment is based on the importer’s knowledge referred to in paragraph 2(b) of Article 17 (Claim for Preferential Tariff Treatment), after having first requested information pursuant to paragraph 1 of this Article, the customs authority of the importing Party conducting the verification may send a request for information to the importer when it considers that additional information is required for verifying the originating status of the product or whether the other requirements of this Chapter are met. The customs authority of the importing Party may request the importer for specific documentation and information, where appropriate.
If the customs authority of the importing Party decides to suspend the granting of preferential tariff treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer. As a condition for such release, the Party may require payment of applied most-favoured-nation customs duties, a guarantee or other
appropriate precautionary measure. Any suspension of preferential tariff treatment shall be terminated and preferential tariff treatment shall be granted as soon as possible after the customs authority of the importing Party has ascertained the originating status of the products concerned, or the fulfilment of the other requirements of this Chapter.
Article ARTICLE 3.25
Administrative cooperation
In order to ensure the proper application of this Chapter, the Parties shall cooperate with each other, through their respective competent authorities, in order to verify whether products are originating and whether the other requirements provided for in this Chapter are met.
Where the claim for preferential tariff treatment is based on a statement on origin referred to in paragraph 2(a) of Article 17 (Claim for Preferential Tariff Treatment), the customs authority of the importing Party conducting the verification may also send a request for information to the competent authority of the exporting Party within a period of two years from the date of the claim for preferential tariff treatment, when the customs authority of the importing Party conducting the verification considers that it requires information additional to the information provided by the importer for verifying the originating status of the product or whether the other requirements provided for in this Chapter are met. The customs authority of the importing Party may request the competent authority of the exporting Party for specific documentation and information, where appropriate.
The customs authority of the importing Party shall include the following information in the request referred to in paragraph 2 of this Article:
the statement on origin;
the identity of the customs authority issuing the request;
the name of the exporter;
the subject and scope of the verification; and
where applicable any relevant documentation.
In addition, the customs authority of the importing Party may request the competent authority of the
exporting Party to provide specific documentation and information.
The competent authority of the exporting Party may, in accordance with its laws and regulations, request documentation or examination by calling for any evidence, or by visiting the premises of the exporter, to review records and observe the facilities used in the production of the product.
The competent authority of the exporting Party following the request referred to in paragraph 2 shall provide the following information:
the requested documentation, where available;
an opinion on the originating status of the product;
the description of the product subject to examination and the tariff classification relevant to the application of the rules of origin;
a description and explanation of the production process to support the originating status of the product;
information on the manner in which the examination was conducted; and
supporting documentation, where appropriate.
The competent authority of the exporting Party shall not transmit information to the customs authority of the importing Party referred to in paragraph 5 without the consent of the exporter.
The Parties shall provide each other, through the specialised committee on Trade in Goods, on Customs matters, and on Sanitary and Phytosanitary matters in the configuration on Rules of Origin, Customs and Trade Facilitation, Intellectual Property for issues related to border enforcement, the contact details of their respective competent authorities and any modification thereof within thirty days after such modification.
Article ARTICLE 3.26
Denial of preferential tariff treatment
Without prejudice to paragraph 3, the customs authority of the importing Party may deny preferential tariff treatment where:
within a period of three months or a shorter period in accordance with the laws and regulations of the importing party], following the request for information pursuant to paragraph 1 of Article 24 (Verification):
no reply is provided by the importer;
where the claim for preferential tariff treatment is based on a statement on origin), the statement on origin was not provided, unless the statement on origin has already been provided under Article 19 paragraph 5 [Statement on Origin]; or
where the claim for preferential tariff treatment is based on the importer’s knowledge, the information provided by the importer is inadequate to confirm that the product is originating;
within a period of three months following the request for additional information pursuant to paragraph 5 of Article 24 (Verification):
no reply is provided by the importer; or
the information provided by the importer is inadequate to confirm that the product is originating;
within a period of ten months following the request for information pursuant to paragraph 2 of Article 25 (Administrative Cooperation):
no reply is provided by the competent authority of the exporting Party; or
the information provided by the competent authority of the exporting Party is inadequate to confirm that the product is originating;
The customs authority of the importing Party may deny preferential tariff treatment to a product for which an importer claims preferential tariff treatment where the importer fails to comply with requirements of this Chapter other than those relating to the originating status of the products.
In cases where the customs authority of the exporting Party provided an opinion pursuant to paragraph 5(b) of Article 25 (Administrative Cooperation) confirming the originating status of the products, but the customs authorities of the importing Party has sufficient justification to deny preferential tariff treatment, the customs authority of the importing Party shall send the copy of its decision to deny the preference.
Article ARTICLE 3.27
Confidentiality
Each Party shall maintain, in accordance with its laws and regulations, the confidentiality of information provided to it by the other Party, pursuant to this Chapter, and shall protect that information from disclosure.
Information obtained by the authorities of the importing Party may only be used by such authority for the purposes of this Chapter. The use of information collected pursuant to this Chapter in any administrative, judicial, or quasi-judicial proceedings instituted for failure to comply is allowed pursuant to a notification to the person or Party who provided the information in advance.
Confidential business information obtained from the exporter by the competent authority of the exporting Party or by customs authority of importing Party through the application of Articles 24 (Verification) and 25 (Administrative Cooperation) shall not be disclosed unless otherwise provided for in this Chapter.
Information obtained by the customs authority of the importing Party pursuant to this Chapter shall not be used by the importing Party in any criminal proceedings carried out by a court or a judge, unless permission to use such information is requested by and provided to the
importing Party through the diplomatic channels or other channels established in accordance with the applicable laws and regulations of the exporting Party.
Article ARTICLE 3.28
Administrative measures and sanctions