Each Party shall provide that an importer, exporter, or producer in its territory may choose to maintain the records specified in paragraphs 1 and 2 in any medium that allows for prompt retrieval, including electronic, optical, magnetic, or written form in accordance with that Party's laws and regulations.
Article 4.24. Verification of Origin
Initiating a Verification of Origin
1. For the purpose of determining whether a good imported into its territory is originating, the customs authority of the importing Party may conduct a verification of any claim for preferential tariff treatment by one or more of the following:
(a) a written request for information from the importer of the good;
(b) a written request for information from the exporter or producer of the good, where the customs authority of the importing Party considers the information obtained under subparagraph (a) is not sufficient to make a determination and the customs authority of the importing Party would like additional information; or
(c) a written request for information from the customs authority of the exporting Party where the customs authority of the importing Party considers the information obtained under subparagraph (a) and subparagraph (b) is not sufficient to make a determination and the customs authority of the importing Party would like additional information.
A verification under this paragraph may be conducted at the time the customs import declaration is lodged, or before or after the release of the good by the customs authority of the importing Party.
2. If the customs authority of the importing Party decides to conduct a verification pursuant to paragraph 1, it shall accept information directly from the importer, exporter, or producer.
3. Where a written request is made under subparagraph 1(b) the customs authority of the importing Party shall:
(a) ensure that the information requested is limited to information pertaining to the fulfilment of the requirements of this Chapter as follows:
(i) if the claim was based on a declaration of origin, that declaration of origin; and
(ii) where the claim was based on the good having been wholly obtained or produced pursuant to subparagraph (a) of Article 4.2 (Origin Criteria), the applicable subparagraph in Article 4.3 (Wholly Obtained or Produced Goods), and the place of production; or
(iii) where the claim was based on the good having been produced entirely pursuant to subparagraph (b) of Article 4.2 (Origin Criteria), information on the origin of the materials, and the place of production; or
(iv) where the claim was based on a change in tariff classification, a list of all the non-originating materials used in the production of the good in a Party, including their tariff classification (in two, four, or six-digit format, depending on the relevant product-specific rule of origin); or
(v) where the claim was based on the regional value content, the value of the final good, the value of all non-originating materials used in the production (where the build-down method is used) or the value of all originating materials used in the production (where the build- up method is used), as well as information on how such values were determined; or
(vi) where the claim was based on a production process, a specific description of that process; and
(vii) information on any tolerances relied on under Article 3.9 (Tolerance); and
(viii) information relating to compliance with the non-alteration provisions under Article 4.17 (Non-Alteration).
(b) allow the exporter or producer at least 30 days from the date of receipt of the request to provide the requested information; and
(c) notify the customs authority of the exporting Party of the request.
4. Where a written request is made under subparagraph 1(c) the customs authority of the importing Party may request specific documentation and information from the customs authority of the exporting Party as part of a verification of origin not later than two years after the date on which a claim for preferential tariff treatment was made. The customs authority of the exporting Party shall provide the customs authority of the importing Party with a written acknowledgement of receipt of this request within 45 days of the date of the request, or any other time period as may be decided between the Parties.
Actions of the customs authority of the exporting Party
5. Following a request under subparagraph 1(c), the customs authority of the exporting Party may, in accordance with the laws and regulations of the exporting Party:
(a) request the records referred to in paragraphs 1 and 2 of Article 4.23 (Record Keeping Requirements);
(b) ask questions of the exporter, a producer, or a supplier of the good to verify the origin of the goods; and
(c) visit the premises of the exporter, a producer, or a supplier to review the records referred to in paragraphs 1 and 2 of Article 4.23 (Record Keeping Requirements) or to observe the facilities used in the production of the good.
6. As soon as possible, and in any event within 10 months after receiving the written request under paragraph 4, the customs authority of the exporting Party shall wherever possible provide the customs authority of the importing Party with the following:
(a) the documentation requested by the customs authority of the importing Party under paragraph 4 where available;
(b) the description of the good that is subject to examination, including its tariff classification in two, four, or six-digit format, depending on the origin criterion;
(c) a description of the production process;
(d) information on the manner in which the examination of the good pursuant to paragraph 5 was conducted; and
(e) supporting documentation, where appropriate.
Release of goods subject to verification
7. During verification, the importing Party shall allow the release of the good, subject to payment of any duties or provision of any security as provided for in its laws and regulations. If as a result of the verification the importing Party determines that the good is an originating good, it shall grant preferential tariff treatment to the good and refund any excess duties paid or release any security provided, unless the security also covers other obligations.
Completing a verification of origin
8. The customs authority of the importing Party shall:
(a) make a determination following a verification as expeditiously as possible and no later than 90 days after it receives the information necessary to make the determination, and no later than 365 days after the first request for information or other action under paragraph 1. If permitted by its laws and regulations, a Party may extend the 365-day period in exceptional cases, such as where the technical information concerned is very complex;
(b) provide the importer with a written determination of whether the good is originating that includes the basis for the determination; and
(c) provide the importer, exporter, or producer that provided information during the verification or certified that the good was originating with the results of the verification and the reasons for that result.
Cooperation
9. The customs authorities of the Parties shall discuss the overall operation and administration of the verification process, including forecasting of workload and discussing priorities. If there is an unmanageable number of requests, the customs authorities of the Parties shall consult to establish priorities and consider steps to manage the workload, taking into consideration operational requirements.
Article 4.25. 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 satisfy any of the requirements of this Chapter;
(b) pursuant to a verification under Article 4.24 (Verification of Origin), it has not received sufficient information to determine that the good qualifies as originating, or that the importer, exporter, producer, or supplier has failed to comply with any requirements of this Chapter;
(c) the exporter, producer, or importer fails to respond to a written request for information in accordance with Article 4.24 (Verification of Origin); or
(d) the importer, exporter, or producer fails to comply with any of the relevant requirements for obtaining preferential tariff treatment.
3. If an importing Party denies a claim for preferential tariff treatment, it shall issue a determination to the importer that includes the reasons for the determination.
4. A Party shall not reject a claim for preferential tariff treatment for the sole reason that the invoice or other commercial document was issued in a non-party. If an invoice is issued in a non-party, a Party shall require that the declaration of origin be separate from the invoice.
Article 4.26. Refunds and Claims for Preferential Tariff Treatment after Importation
1. Each Party shall 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) where applicable, provide a copy of any declaration of origin; and
(c) provide such other documentation relating to the importation of the good as the importing Party may require,
no later than two years after the date of importation or a longer period if specified in the importing Party's laws and regulations.
Article 4.27. Penalties
A Party shall establish or maintain measures imposing criminal, civil, or administrative penalties for violations of its laws and regulations related to this Chapter.
Article 4.28. Confidentiality
For greater certainty, Article 5.21 (Confidentiality - Customs Procedures and Trade Facilitation) applies to this Chapter.
Section C. Other Matters
Article 4.29. Working Group on Rules of Origin and Customs and Trade Facilitation
1. The Parties hereby establish a Working Group on Rules of Origin and Customs and Trade Facilitation composed of government representatives of each Party responsible for rules of origin and customs and trade facilitation matters to consider any matters arising under this Chapter or Chapter 5 (Customs Procedures and Trade Facilitation).
2. The functions of the Working Group on Rules of Origin and Customs and Trade Facilitation shall include:
(a) cooperating in the administration and uniform interpretation of this Chapter and Chapter 5 (Customs Procedures and Trade Facilitation);
(b) monitoring the effective operation and implementation of this Chapter and Chapter 5 (Customs Procedures and Trade Facilitation);
(c) providing a regular forum for information exchange on matters related to this Chapter and Chapter 5 (Customs Procedures and Trade Facilitation);
(d) ensuring customs authority contact details have been exchanged;
(e) discussing the potential for applying cumulation with:
(i) non-parties where each Party has a free trade agreement with the same non-party; and
(ii) least-developed countries;
(f) considering amendments or modifications to this Chapter, Annex 4B (Product-Specific Rules) or Annex 4A (Data Requirements), that are necessary to reflect changes to the Harmonized System and taking into account developments in technology, production processes or other related matters;
(g) considering amendments or modifications to Article 4.17 (Non- Alteration); and
(h) considering any matters referred to it by the Committee on Trade in Goods or the Joint Committee.
3. The Working Group on Rules of Origin and Customs and Trade Facilitation shall meet within one year of the date of entry into force of this Agreement and thereafter as the Parties may decide.
4. The Working Group on Rules of Origin and Customs and Trade Facilitation shall report to the Committee on Trade in Goods.
Chapter 5. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 5.1. Definitions
For the purposes of this Chapter:
"customs laws" means any laws and regulations applicable in the territory of each Party governing the import, export, and transit of goods, as well as other customs procedures, and including measures of prohibition, restriction, and control, administered, applied or enforced by the customs authorities of the Parties; and
"customs procedures" means the measures applied by the customs authority of each Party.
Article 5.2. Scope
1. This Chapter applies to customs procedures applied to goods traded between the Parties.
2. This Chapter shall be implemented by each Party in accordance with its laws and regulations.
Article 5.3. Customs Procedures and Facilitation of Trade
1. Each Party shall ensure that its customs procedures are applied in a manner that is predictable, consistent, transparent, and non-discriminatory.
2. The Parties affirm their rights and obligations under the Trade Facilitation Agreement.
3. Customs procedures of each Party shall conform, where possible, and to the extent permitted by its respective laws, regulations, and policies, to international standards and recommended practices established by the World Customs Organization ("WCO") and under other relevant international agreements to which the Parties are party.
4. Each Party shall periodically review its customs procedures with a view to exploring options for their simplification and the enhancement of mutually beneficial arrangements to facilitate trade between the Parties.
5. The Parties shall seek to reinforce their cooperation to promote trade facilitation while ensuring effective customs control.
Article 5.4. Data, Documentation and Automation
1. With a view to simplifying and minimising the complexity of import, export, and transit formalities and documentation requirements, each Party shall ensure as appropriate, that such formalities, data, and documentation tequirements:
(a) are adopted or applied with a view to a rapid release of goods, to facilitate trade between the Parties; and
(b) are adopted or applied in a manner that aims to reduce the time and cost of compliance for traders and operators.
2. Each Party shall:
(a) make electronic systems accessible to customs users;
(b) allow a customs declaration to be submitted in electronic format;
(c) employ electronic or automated systems for risk analysis and targeting; and
(d) endeavour to implement common standards and elements for import and export data by giving consideration to the WCO Data Model;
3. The Parties shall endeavour to cooperate on the development of interoperable electronic systems, to facilitate trade between the Parties.
Article 5.5. Transparency and Publication
1. Further to Article 28.2 (Publication - Transparency and Anti-Corruption), each Party shall promptly publish, including online:
(a) importation, exportation, and transit procedures (including port, airport, and other entry point procedures) and required forms and documents;
(b) applied rates of duties and taxes of any kind imposed on or in connection with importation or exportation;
(c) fees and charges imposed by or for governmental agencies on or in connection with importation, exportation or transit;
(d) tules for the classification or valuation of products for customs purposes;
(e) laws, regulations, and administrative rulings of general application relating to rules of origin;
(f) import, export or transit restrictions or prohibitions;
(g) penalty provisions against breaches of import, export or transit formalities;
(h) procedures for appeal or review;
(i) agreements or parts thereof with any country or countries relating to importation, exportation or transit;
(j) procedures relating to the administration of tariff quotas;
(k) hours of operation services provided by customs offices at ports and border crossing points; and
(l) points of contact for information enquiries.
2. Each Party shall establish or maintain one or more enquiry points to address enquiries of interested parties or persons concerning customs and other trade facilitation issues and shall make information concerning the procedures for making those enquiries publicly available online. The enquiry points shall answer enquiries and provide the forms and documents within a reasonable time period set by each Party, which may vary depending on the nature or complexity of the request.
Article 5.6. Simplified Customs Procedures
Each Party shall adopt or maintain measures allowing traders or operators fulfilling criteria specified in its laws and regulations to benefit from further simplification of customs procedures. Those measures may be offered through a Party's Authorised Economic Operator program, or otherwise made available to traders or operators in accordance with its laws and regulations and may include:
(a) customs declarations containing a reduced set of data or supporting documents, including for the movement of low-value consignments;
(b) deferred payment of customs duties and taxes until after the release of those imported goods; and
(c) other matters as the Party may decide.
Article 5.7. Expedited Shipments
1. Each Party shall adopt or maintain expedited customs procedures for expedited shipments, (1) while maintaining appropriate customs control and selection. These procedures shall:
(a) provide for the submission and processing of information in advance of the arrival (2) of a shipment to expedite its release;
(b) to the extent possible, allow for a single submission of information covering all goods contained in a shipmentthrough, if possible, electronic means;
(c) to the extent possible, provide for the release of expedited shipments with a minimum of documentation or a reduced set of data;
(d) provide, in normal circumstances, for an expedited shipment to be released within six hours of arrival, provided:
(i) all information and documentation necessary to release the goods have been submitted on or prior to arrival;
(ii) the goods are not subject to physical examination or inspection; and
(iii) the goods are otherwise admissible under the importing Party's laws and regulations;
(e) apply to shipments of any weight or value recognising that a Party may require additional entry procedures as a condition for release, including declarations and supporting documentation and payment of customs duties, and may limit such treatment based on the type of good; and
(f) provide that under normal circumstances no customs duties will be assessed on expedited shipments valued at or below a fixed amount set under a Partyâs law.
2. If a Party does not provide the treatment in subparagraphs 1(a) through 1(f) to all shipments, that Party shall provide a separate (3) and expedited customs procedure that provides that treatment for expedited shipments.
Article 5.8. Release of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties in a manner that aims to reduce the cost for traders. This paragraph shall not require a Party to release a good if its requirements for release have not been met.
2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that:
(a) provide, in normal circumstances, for goods to be released within 48 hours of arrival, (4) provided:
(i) all information and documentation necessary to release the goods have been submitted on or prior to arrival;
(ii) the goods are not subject to physical examination or inspection; and
(iii) the goods are otherwise admissible under the importing Party's laws and regulations;
(b) if applicable and to the extent possible, provide for the electronic submission and processing of customs information relating to import in advance of the arrival of the goods to expedite the release of goods from customs control upon arrival;
(c) allow goods to be released without temporary transfer to warehouses or other facilities;
(d) allow for the release of goods prior to the final determination of customs duties, taxes, fees, and charges not determined prior to or promptly upon arrival, provided that the good is otherwise eligible for release and any security required by the importing Party has been provided. Before releasing the goods, a Party may require that an importer provides sufficient guarantee in the form of a surety, a deposit, or some other appropriate instrument; and
(e) to the extent possible and if applicable, provide for, in accordance with its laws and regulations, clearance of certain goods with a minimum of documentation.
3. If a Party allows for the release of goods conditioned on a security, it shall adopt or maintain procedures that:
(a) ensure that the amount of the security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled;