9. The customs administration of the importing Party shall provide the importer with a written determination of origin that includes the findings of facts and the legal basis for the determination.
10. Prior to issuing a written determination after a verification under subparagraphs (a) or (b) of Article 3.22 (Verification of Origin), if the importing Party intends to deny preferential tariff treatment, it may decide to provide the importer and any exporter or producer who is subject to the verification or provided information directly to the importing Party, a period of at least 30 days before the determination is made, for the submission of additional information relating to the origin of the good.
11. For greater certainty, a request for information pursuant to paragraph 1 shall not preclude the use of a verification visit pursuant to Article 3.22(c) (Verification of Origin).
Article 3.24. Verification Visit
1. An importing Party may, through its customs administration, conduct a verification visit to the premises of the exporter or producer of the good pursuant to Article 3.22(c) (Verification of Origin), and the applicable procedures, through a request for a verification visit as described in this Article.
2. Prior to conducting a verification visit, the customs administration of the importing Party shall request the written consent of the exporter or producer at least 60 days in advance of the proposed verification visit.
3. For the purpose of paragraph 2, the written request for consent of the exporter or producer to the verification visit shall indicate:
(a) the elements provided in Article 3.23.2 (Request for Verification of Origin);
(b) the legal authority for the visit;
(c) the proposed date and location for the visit;
(d) the specific purpose of the visit; and
(e) the names and titles of the officials conducting the visit.
4. If the importing Party initiates a verification visit under paragraph 1, it shall, at the time of making the request for consent to the visit under paragraph 2, provide a copy of the request to the competent authority of the other Party.
5. Each Party shall provide that the exporter or producer shall respond within 30 days of the date of its receipt of the written request under paragraph 2 to provide its written consent or refusal for a verification visit.
6. For greater certainty, the customs administration of the importing Party shall not visit the premises of any exporter or producer in the territory of the exporting Party without written prior consent from the exporter or producer.
7. Each Party shall provide that the competent authority of the exporting Party may, within 15 days of the date of receipt of the copy of the request under paragraph 4, postpone the proposed verification visit for a period not exceeding 45 days from the proposed date of the visit, or for a longer period that the Parties may decide.
8. Each Party shall provide that, the exporter or producer may, on a single occasion and within 15 days of the date of receipt of the request under paragraph 2, postpone the proposed verification visit for a period not exceeding 45 days from the proposed date of the visit.
9. A Party shall not deny preferential tariff treatment to a good based only on the postponement of a verification visit under paragraph 7 or paragraph 8.
10. Prior to issuing a written determination after a verification pursuant to Article 3.22(c) (Verification of Origin), if the importing Party intends to deny preferential tariff treatment, it shall provide the importer and any exporter or producer who is subject to the verification or provided information directly to the importing Party, a period of at least 30 days for the submission of additional information relating to the origin of the good.
Article 3.25. Supplementary Provisions for Verifications of Origin
1. For the purposes of Article 3.23 (Request for Verification of Origin) and Article 3.24 (Verification Visit):
(a) it is sufficient for a Party to rely on the contact information of an exporter, producer, or importer located in the territory of a Party provided in a declaration of origin; and
(b) all communication to the importer, exporter, producer, customs administration, or competent authority of the exporting Party shall be sent by any means that can produce any confirmation of receipt. The specified time periods will begin from the date of receipt.
2. If the customs administration of the importing Party conducts a verification under Article 3.22 (Verification of Origin), it shall:
(a) ensure that the written request for information, or documentation to be reviewed, is limited to information and documentation to determine whether the good is originating; and
(b) describe the information or documentation requested in sufficient detail to allow the importer, exporter, or producer to identify the information and documentation necessary to respond.
3. For the purposes of Article 3.22 (Verification of Origin), the importing Party shall inform the importer, and any exporter or producer who is subject to the verification or provided information directly to the importing Party, of the results.
4. If verifications by a Party indicate a pattern of conduct by an importer, exporter, or producer of false or unsupported representations relevant to a claim that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods imported, exported, or produced by that person until that person demonstrates that the identical goods qualify as originating. For the purposes of this paragraph, “identical goods” means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating.
5. If a pattern of conduct is established, the verification process does not need to be conducted on future imports of identical goods. However, the importer must be notified each time the goods are denied preferential tariff treatment. The exporter or producer must also be notified that the goods have been denied preferential tariff treatment if they have provided the importer with a declaration of origin after a pattern of conduct has been established.
6. In conducting a verification of origin of a good imported into its territory pursuant to Article 3.22 (Verification of Origin), a Party may conduct a verification of the origin of a material that is used in the production of that good in accordance with Article 3.22 (Verification of Origin), and the procedures in paragraphs 1, 2, and 5 of Article 3.23 (Request for Verification of Origin), paragraphs 1 through 5, 6, 7, and 8 of Article 3.24 (Verification Visit), paragraphs 1(b) and 2 of this Article, and Article 3.26 (Participation of Observers in Origin Verification).
7. If a Party conducts a verification of a material under paragraph 6, the Party may consider the material to be non-originating in determining whether the good is an originating good if the producer or supplier of that material does not allow the Party access to information required to make a determination of whether the material is an originating material by the following or other means:
(a) denial of access to its records;
(b) failure to respond to a request for information; or
(c) failure to provide its written consent within 30 days of the date ofreceipt of a request for a verification visit under Article 3.24.2 (Verification Visit).
8. If the customs administration of the importing Party considers the information obtained under Article 3.22 (Verification of Origin) is not sufficient to make a determination, it may request the assistance of the exporting Party. On request, the exporting Party may, as it deems appropriate and in accordance with its laws and regulations, assist with the verification by providing information it has that is relevant to the verification of origin. The importing Party shall not deny a claim for preferential tariff treatment solely on the grounds that the exporting Party did not provide the requested assistance.
9. The Party conducting a verification shall, as expeditiously as possible and no later than 120 days after it has received all the information necessary to make the determination, provide the written determination under Article 3.23.9 (Request for Verification of Origin). In exceptional cases, the Party may extend this period for up to 90 days after notifying the importer, and any exporter or producer who is subject to the verification or provided information during the verification. For the purposes of this paragraph, information necessary means any information collected pursuant to a verification request to an exporter or producer, information that may be required regarding the materials used in the production of a good or any assistance requested under paragraph 8.
Article 3.26. Participation of Observers In Origin Verification
Each Party shall allow an exporter or a producer whose good is the subject of a verification visit by the other Party pursuant to Article 3.22(c) (Verification of Origin) to designate three observers (4) to be present during the visit, provided that:
(a) the observers do not participate in a manner other than as observers;
(b) the failure of the exporter or producer to designateobservers does not result in the postponement of the visit; and
(c) the exporter or producer of a good identifies, to the customs administration conducting the verification visit, any observers designated to be present during the visit.
Article 3.27. Determinations on Claims for Preferential Tariff Treatment
1. Except as otherwise provided in paragraph 2, each Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good that arrives in its territory on or after the date of entry into force of this Agreement. In addition, if permitted by the importing Party, the importing Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good which is imported into its territory or released from customs control on or after the date of entry into force of this Agreement.
2. The importing Party may deny a claim for preferential tariff treatment if:
(a) it determines that the good does not qualify as originating under this Chapter;
(b) it has not received sufficient information to determine that the good qualifies as originating pursuant to a verification under Article 3.22 (Verification of Origin);
(c) it has not received a response to a written request for information or questionnaire from the importer, producer, or exporter in accordance with subparagraph (a) or (b) of Article 3.22 (Verification of Origin);
(d) the exporter or producer does not provide its written consent to a verification visit pursuant to Article 3.22(c) (Verification of Origin); or
(e) the importer, exporter, or producer fails to comply with the requirements of this Chapter.
Article 3.28. Refunds and Claims for Preferential Tariff Treatment after Importation
1. Each Party may, in accordance with its laws and regulations, provide that an importer may apply for preferential tariff treatment and a refund of any excess duties paid for a good if the importer did not make a claim for preferential tariff treatment at the time of importation, provided that the good would have qualified for preferential tariff treatment when it was imported into the territory of the Party.
2. As a condition for preferential tariff treatment under paragraph 1, the importing Party may require that the importer:
(a) make a claim for preferential tariff treatment;
(b) provide a statement that the good was originating at the time of importation;
(c) provide a copy of the declaration of origin; and
(d) provide such other documentation relating to the importation of the good as the importing Party may require, no later than one year after the date of importation or a longer period if specified in the importing Party’s laws and regulations.
Article 3.29. Penalties
Each Party shall maintain criminal, civil, or administrative penalties for violations of its laws and regulations related to this Chapter.
Article 3.30. Advance Rulings Relating to Origin
1. Each Party shall, through its customs administration, provide for the expeditious issuance of written advance rulings, prior to the importation of a good into its territory, to an importer in its territory or an exporter or producer of the exporting Party, or any other person with a justifiable cause, or a representative thereof, concerning whether a good qualifies as an originating good under this Chapter.
2. A Party may require that the person requesting an advance ruling pursuant to paragraph 1 have legal representation or be registered in its territory.
3. Each Party shall adopt or maintain procedures forthe issuance of advance rulings, including a detailed description of the information reasonably required to process an application for a ruling.
4. Each Party shall make the following information available on one or morefree, publicly accessible websites, and shall ensure that the information is updated as necessary:
(a) the advance rulings procedures as set out in paragraph 3;
(b) newly issued advance rulings pursuant to this Article and Article 4.8 (Customs Procedure and TradeFacilitation – Advance Rulings), in accordance with its laws, regulations, and procedures, which may be subject to the consent of the person to whom the advance ruling was issued.
5. Each Party shall endeavour to allow a person to request an advance ruling through electronic means, such as via email or through an internet-based system.
6. Each Party shall provide that its customs administration:
(a) may, at any time during the course of an evaluation of an application for an advance ruling, request supplemental information from the person requesting the ruling;
(b) issue the ruling within 120 days from the date on which it has obtained all necessary information from the person requesting the advance ruling; and
(c) provide, to the person requesting the advance ruling, a full explanation of the reasons for the ruling.
7. When an application for an advance ruling involves an issue that is the subject of:
(a) a verification of origin;
(b) a review by, or appeal to, a customs administration; or (c) a judicial or quasi-judicial review in the customs administration’s territory, the customs administration, in accordance with its laws, may decline or postpone the issuance of the ruling.
8. Subject to paragraph 10, each Party shall apply an advance ruling to importations into its territory of the product for which the ruling was requested on the date of its issuance or at a later date if specified in the ruling.
9. Each Party shall issue consistent advance rulings when all relevant facts and circumstances are identical.
10. A Party may issue a modification or revocation ofan advance ruling if:
(a) the ruling is based on an error of fact;
(b) there is a change in the material facts or circumstances on which the ruling is based;
(c) it is to conform with an amendment of this Chapter or Chapter 2 (National Treatment and Market Access for Goods); or (d) it is to conform with a judicial or quasi-judicial decision or a change in its law.
11. A modification or revocation of an advance ruling issued in accordance with paragraph 10 is effective on the date on which the modification or revocation is issued, or on a later date if specified in the ruling, and shall not be applied to importations of a product that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.
12. Each Party shall provide that an advance ruling remains in effect and is honoured unless it has been modified or revoked pursuant to paragraph 10.
13. A Party shall not impose a fee or chargefor the issuance or processing of advance rulings.
14. Each Party shall promote the use of the other Party’s advance rulings by encouraging its traders to request advance rulings from the other Party.
Article 3.31. Review and Appeal
For greater certainty, the importing Party shall grant the rights of review and appeal in matters relating to the determination of origin under this Chapter in accordance with Article 4.18 (Customs Procedure and Trade Facilitation – Review and Appeal).
Article 3.32. Confidentiality
For greater certainty, Article 4.19 (Customs Procedure and Trade Facilitation – Protection of Trader Information) applies to information that relates to a trader that is collected or shared under this Chapter.
Article 3.33. Administrative Regulations on Origin Procedures
1. The Parties shall establish and implement through their respective laws, regulations, or administrative policies, administrative regulations regarding the interpretation, application, and administration of this Chapter, including the Minimum Data Elements of the Declaration of Origin contained in Annex 3-A.
2. Each Party shall implement any modification of or addition to the administrative regulations, referred to in paragraph 1, within such period as the Parties may decide. 3. Each Party shall apply the administrative regulations, referred to in paragraph 1, in addition to the obligations in the Chapter.
Article 3.34. Cooperation
1. The Parties shall cooperate, to the extent practicable and subject to available resources, to jointly organize training programs on trade and customs issues related to this Chapter, such as simulated audit environment exercises, for the government officials who participate directly in trade and customs procedures.
2. With respect to goods considered originating in accordance with Article 3.4 (Accumulation), the Parties may cooperate with a non-Party in developing origin procedures based on the principles of this Chapter.
Section D. Other Matters
Article 3.35. Committee on Rules of Origin, Origin Procedures, and Trade Facilitation
1. The Parties hereby establish a Committee on Rules of Origin, Origin Procedures, and Trade Facilitation (Committee), composed of government representatives of each Party, to consider any matters arising under this Chapter and Chapter 4 (Customs Procedures and Trade Facilitation).
2. The Committee shall consult regularly to ensure that this Chapter and Chapter 4 (Customs Procedures and Trade Facilitation) is administered effectively, uniformly, and consistently with the spirit and objectives of this Agreement, and shall cooperate in the administration of this Chapter and Chapter 4 (Customs Procedures and Trade Facilitation).
3. The Committee shall consult to discuss possible amendments or modifications to this Chapter and its Annexes, taking into account developments in technology, production processes, or other related matters.
4. Prior to the entry into force of an amended version of the Harmonized System (HS), the Committee shall consult to prepare updates to this Chapter that are necessary to reflect changes to the Harmonized System (HS).
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 4.1. Objectives and Principles
1. Each Party affirms its rights and obligations under the Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement.
2. Each Party shall administer its customs procedures relating to the importation, exportation, and transit of goods, with the objective of:
(a) promoting predictability, consistency, and transparency in the application of its customs laws and regulations throughout its territory;
(b) facilitating the importation, exportation, and transit of goods that meet its laws, regulations, and procedural requirements; and
(c) ensuring compliance with its law.
3. The Parties shall seek to promote cooperation between their customs administrations.
4. For greater certainty, nothing in this Chapter shall prevent a Party from administering or introducing a measure that ensures or enhances trader compliance with its laws, regulations, or procedural requirements relating to the importation, exportation, or transit of goods, in a manner that is consistent with its international obligations and the obligations in this Chapter. This includes a measure that seeks to ensure the safety and security of the Party and its citizens through the proper declaration of goods and the payment of applicable duties, taxes, fees, and charges by traders.
Article 4.2: Scope
This Chapter applies to customs matters with respect to goods traded between the Parties in accordance with the respective laws and regulations of each Party.
Article 4.3. Publication and Availability of Information
Each Party shall make the following information available on one or more free, publicly accessible websites, and shall ensure that the information is updated as necessary:
(a) information the Party is required to publish under the Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement, and Article X (Publication and Administration of Trade Regulations) of the General Agreement on Tariffs and Trade 1947, set out in Annex 1A to the WTO Agreement, in a manner that enables persons to become acquainted with them;
(b) the Party’s customs procedures relating to the importation, exportation, and transit of goods, in a manner that is clear and comprehensive;
(c) a description of the procedures and practical steps an interested person needs to follow for the importation into, exportation from, and transit of goods through the Party’s territory;
(d) contact information for any enquiry point maintained by the Party pursuant to Article 4.4 (Enquiry Points);
(e) a comprehensive list of the Party’s governmental authorities responsible formeasures imposed in relation to the importation into, exportation from, and transit of goods through its territory, including their contact information;
(f) information on the Party’s security regime and its requirements, if administered, including the method used to establish a security amount, as set out in Article 4.10.4 (Release of Goods);
(g) information on the Party’s single window system,as set out in Article 4.12 (Single Window System);
(h) information on the Party’s penalty regime for breaches of customs laws and regulations, as set out in Article 4.17 (Penalties);
(i) information on how a person may request a review or appeal, pursuant to Article 4.18 (Review and Appeal); and
(j) information on how a person may submit a complaint, in accordance with Article 4.20.2 (Standards of Conduct).
Article 4.4. Enquiry Points
1. Each Party shall maintain one or more enquiry points to address enquiries from interested persons regarding its customs procedures pertaining to the importation, exportation, and transit of goods.
2. A Party shall not require the payment of a fee or charge for answering an enquiry under paragraph 1. For greater certainty, a Party may require payment of a fee or charge with respect to other enquiries requiring document search, duplication, and review in connection with requests for public access to government records made in accordance with its laws and regulations.
3. Each Party shall ensure that a response to an enquiry under paragraph 1 is provided within a reasonable period of time, which may vary depending on the nature or complexity of the request.
Article 4.5. Trader Consultation
1. If a Party proposes to adopt a regulation of general application governing trade and customs matters relating to goods, that Party shall, to the extent possible and in accordance with its law:
(a) publish the proposed regulation on a free, publicly accessible website; or
(b) make information on the proposed regulation available free of charge and through any electronic means, as early as possible, before its adoption.
2. Each Party shall, to the extent possible and in accordance with its law, provide interested persons the opportunity to comment on a proposed regulation referred to in paragraph 1.
3. Each Party shall allow for communication between its customs administration and traders within its territory regarding its procedures related to the importation, exportation, and transit of goods, including emerging issues. These communications may take place regularly or on an ad hoc basis.
Article 4.6: Tariff Classification of Goods
For the purposes of determining the tariff classification of goods traded between the Parties, each Party shall apply the Harmonized System (HS).
Article 4.7. Customs Valuation of Goods
1. For the purposes of determining the customs value of goods traded between the Parties, each Party shall apply the provisions contained in Part I and Annex I of the Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Customs Valuation Agreement), set out in Annex 1A of the WTO Agreement.
2. In applying paragraph 1, each Party shall examine the customs value of an imported good on its own merit, giving due consideration to the circumstances surrounding the individual importation. To this end, a Party shall not reject the application of the “transaction value” method under Article 1 of the Customs Valuation Agreement, solely based on the fact that the price declared for an imported good is lower than the prevailing market prices for identical imported goods, or lower than the prevailing market prices for similar imported goods, as applicable.
3. To the greatest extent possible, if an import declaration has been presented and the customs administration of the importing Party has reason to doubt the truth or accuracy of the particulars of the declaration, or of documents produced in support of the declared customs value, the Party’s customs administration shall apply the provisions contained in Decision 6.1 of the WTO Committee on Customs Valuation.
4. For greater certainty, for the purposes of this Article, a Party’s communication in writing as referred to in the Customs Valuation Agreement or in Decision 6.1 of the WTO Committee on Customs Valuation may be done through electronic means.
Article 4.8. Advance Rulings
1. Each Party shall issue an advance ruling on:
(a) the tariff classification of a good, in accordance with the Harmonized System (HS);
(b) the appropriate method or criteria to be used for determining the customs value of a good, under a particular set of facts, in accordance with the Customs Valuation Agreement;
(c) the origin of a good; and
(d) any other matter that the Parties may decide.
2. For the purposes of paragraph 1, each Party shall issue advance rulings in accordance with Article 3.30 (Rules of Origin and Origin Procedures – Advance Rulings Relating to Origin).
Article 4.9. Pre-Arrival Processing
1. Each Party shall adopt or maintain procedures allowing for the submission of information, including documentation or data, required for the importation of goods, in order to begin processing prior to the arrival of goods with a view to expediting the release of goods upon arrival.
2. Each Party shall, as appropriate, provide for the advance submission of information, including documentation or data, referred to in paragraph 1 in electronic format for pre-arrival processing of this information.