Section 2. Origin Implementation Procedures
Article 3.14. CERTIFICATE OF ORIGIN
1. A Certificate of Origin as set out in Annex II-B shall be issued by the authorized bodies of a Party (for China, China entry-exit inspection and quarantine organizations affiliated to the General Administration of Quality Supervision, Inspection and Quarantine and China Council for the Promotion of International Trade and its local sub-councils; for Georgia, Customs administration) on application by exporter or producer, provided that the goods can be considered as originating in that Party subject to the provision of this Chapter.
2. The Certificate of Origin shall:
(a) Contain a unique certificate number;
(b) Cover one or more goods under one consignment;
(c) State the basis on which the goods are deemed to qualify as originating for purposes of this Chapter;
(d) Contain security features, such as specimen signatures or stamps as advised to the importing Party by the exporting Party; and
(e) Be completed in English.
3. The Certificate of Origin shall be issued before or at the time of shipment. It shall be valid for one year from the date of issuance in the exporting Party.
4. Each Party shall inform the customs authority of the other Party of the name of each authorised body, as well as relevant contact details, and shall provide details of any security features for relevant forms and documents used by each authorized body, prior to the issuance of any certificates by that body. Any change in the information provided above shall be promptly notified to the customs authority of the other Party.
5. A Certificate of Origin may be issued retrospectively within one year from the date of shipment, bearing the words "ISSUED RETROSPECTIVELY" and remain valid for one year from the date of shipment, if:
(a) It was not issued before or at the time of shipment due to force majeure, involuntary errors, omissions or other valid causes; or
(b) It was requested by the customs authority of the importing Party, where a Certificate of Origin was issued but not accepted at importation.
6. For cases of theft, loss or accidental destruction of a Certificate of Origin, the exporter or producer may, make a written request to the authorized bodies of the exporting Party for issuing a certified copy, provided that the original copy previously issued has been verified not to be used. The certified copy shall bear the words "CERTIFIED TRUE COPY of the original Certificate of Origin number ___ dated ___". The certified copy shall be valid during the term of validity of the original Certificate of Origin.
Article 3.15. RETENTION OF ORIGIN DOCUMENTS
1. Each Party shall require its producers, exporters and importers to retain documents that prove the originating status of the goods as well as the fulfillment of the other requirements of this Chapter for at least 3 years or any longer time in accordance with each Party's domestic law .
2. Each Party shall require that its authorized bodies retain copies of Certificates of Origin and other related supporting documents for at least 3 years or any longer time in accordance with each Party's domestic law.
Article 3.16. OBLIGATIONS REGARDING IMPORTATIONS
Unless otherwise provided in this Chapter, the importer claiming for preferential
Tariff treatment shall:
(a) Indicate in the customs declaration that the good qualifies as an originating good;
(b) Possess a valid Certificate of Origin, at the time the import customs declaration referred to in subparagraph (a) is made; and
(c) Submit the valid Certificate of Origin and other documentary evidence related to the importation of the goods, upon request of the Customs Administration of the importing Party.
Article 3.17. REFUND OF IMPORT CUSTOMS DUTIES OR DEPOSIT
1. Where a Certificate of Origin is not submitted to the importing customs at the time of importation pursuant to Article 3.16 (Obligation Regarding Importation), upon the request of the importer, the Customs authorities of the importing Party may impose the applied non-preferential customs duties, or require a guarantee equivalent to the full amount of the customs duties on that good, provided that the importer formally declares to the customs authority at the time of importation that the good in question qualifies as an originating good.
2. The importer may apply for a refund of any excess customs duties imposed or guarantee paid provided they can present all the necessary documentation required under Article 3.16 and within the period specified in the legislation of the importing Party.
Article 3.18. WAIVER OF CERTIFICATE OF ORIGIN
1. Notwithstanding Article 3.16 (Obligation Regarding Importation), a Party may waive the requirements for the presentation of a Certificate of Origin to any consignments of originating goods of a customs value not exceeding US$ 600 or its equivalent amount in the Party's currency.
2. Waivers provided for in paragraph 1 shall not be applicable when it is established by the customs authorities of the importing Party that the importation forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the submission of Certificate of Origin.
Article 3.19. VERIFICATION OF ORIGIN
1. Subsequent verifications of origin may be carried out at random or whenever the customs authorities of the importing Party have reasonable doubts as to the authenticity of Certificate of Origin, the originating status of the goods concerned or the fulfilment of the other requirements of this Chapter. The customs authority of the importing Party may conduct a verification of origin by means of:
(a) request of additional information from the importer;
(b) request of Administrative Assistance from the customs administration of the exporting Party; or
(c) conduct verification visit to the exporting Party, when necessary, in a manner to be jointly determined by the Parties.
2. The customs authority of the importing Party requesting verification to the exporting Party shall specify the reasons, and provide any documents and information justifying the verification.
3. The importer and the customs administration of the exporting Party referred to in paragraph 1 of this Article receiving a request for verification, shall respond to the request promptly and reply within six months from the date of raising verification request.
4. If no reply is received within the periods mentioned above, or if the reply does not contain sufficient information to determine the authenticity of the documents or the originating status of the goods in question, the requesting customs authorities may deny preferential tariff treatment.
Article 3.20. DENIAL OF PREFERENTIAL TARIFF TREATMENT
Except as otherwise provided in this Chapter, the importing Party may deny claim for preferential tariff treatment, if:
(a) the goods do not meet the requirements of this Chapter;
(b) the importer, exporter or producer fails to comply with the relevant requirements of this Chapter;
(c) the certificate of origin does not meet the requirement of this Chapter; or
(d) in a case stipulated in paragraph 4 of Article 3.19 (Verification of Origin).
Article 3.21. ELECTRONIC ORIGIN DATA EXCHANGE SYSTEM
Both Parties shall establish Electronic Origin Data Exchange System to ensure real-time exchange of origin related information between customs administrations,
Including:
(a) information concerning the unique certificate number;
(b) data of the exported goods entitled to preferential tariff treatment endorsed by the customs authorities of exporting Party;
(c) information of the implementation of preferential tariff treatment administered by the importing Party.
Article 3.22. CONTACT POINTS
Each Party shall designate contact points to ensure the effective and efficient implementation of this chapter. All information shall only be exchanged via contact points.
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 4.1. SCOPE AND OBJECTIVES
1. This Chapter shall apply, without prejudice to each Party's respective international obligations and domestic customs law, customs procedures applied to goods traded and to the movement of means of transport between the Parties.
2. The objectives of this Chapter are to:
(a) Simplify and harmonize customs procedures of the Parties;
(b) Facilitate trade between the Parties; and
(c) promote cooperation between the customs administrations, within the scope of this Chapter.
Article 4.2. DEFINITIONS
For purposes of this Chapter:
(a) Customs administration means:
(i) For China, the General Administration of Customs of the People's Republic of China; and
(ii) For Georgia, Revenue Service -Legal Entity of Public Law of the Ministry of Finance;
(b) Customs law means the statutory and regulatory provisions relating to the importation, exportation, movement or storage of goods, the administration or enforcement of which are specifically charged to the customs administration, and any regulations made by the customs administration under its statutory powers;
(c) Customs procedures means the treatment applied by the customs administration to goods and means of transport that are subject to customs control;
(d) Customs Valuation Agreement means the Agreement on Implementation of Article VII of the GATT 1994 which is a part of the Annex 1A of the Marrakesh Agreement Establishing the World Trade Organization; and
(e) Means of transport means various types of vessels, vehicles, and aircrafts which enter or leave the territory of a Party carrying persons and/or goods.
Article 4.3. FACILITATION
1. Each Party shall ensure that its customs procedures and practices are predictable, consistent and transparent to facilitate trade.
2. Each Party shall use efficient customs procedures, based, as appropriate, on international standards, aiming to reduce costs and unnecessary delays in trade between them, in particular the standards and recommended practices of the World Customs Organization, including the principles of the revised International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention).
3. Each Party shall limit controls, formalities and the number of documents required in the context of trade in goods between the Parties to those necessary and appropriate to ensure compliance with legal requirements, thereby simplifying, to the greatest extent possible, the related procedures.
4. The customs administration of each Party shall periodically review its customs procedures with a view to exploring options for the simplification and the enhancement of mutually beneficial arrangements to facilitate international trade.
Article 4.4. TRANSPARENCY
1. Each Party shall promptly publish, including on the Internet, its laws, regulations, and, where applicable, administrative rules or procedures of general application relevant to trade in goods between the Parties.
2. Each Party shall designate one or more enquiry points to address enquiries from interested persons on customs matters, and shall make available on the Internet information concerning procedures for making such enquiries.
3. To the extent practicable and in a manner consistent with its laws and regulations, each Party shall publish, in advance on the Internet, draft laws and regulations of general application relevant to trade between the Parties, with a view to affording the public, especially interested persons, an opportunity to provide comment.
4. Each Party shall ensure, to the extent possible, that a reasonable interval is provided between the publication of new or amended laws and regulations of general application relevant to trade between the Parties and their entry into force.
5.Each Party shall administer, in a uniform, impartial and reasonable manner, its laws and regulations of general application relevant to trade between the Parties.
Article 4.5. CUSTOMS VALUATION
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of GATT 1994 and the Customs Valuation Agreement.
Article 4.6. TARIFF CLASSIFICATION
The Parties shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between them.
Article 4.7. COOPERATION
1. To the extent permitted by their laws and regulations, the customs administrations of both Parties shall assist each other, in relation to:
(a) The implementation and operation of this Chapter;
(b) The application of the provisions laid down in the Agreement Between the Customs General Administration of the People's Republic of China and the Customs Committee of the Republic of Georgia on Co-operation and Mutual Assistance; and
(c) Such other issues as the Parties may mutually agree.
2. Each Party shall endeavour to provide the other Party with timely notice of any significant modification of its customs laws, regulations or procedures that are likely to substantially affect the operation of this Agreement.
Article 4.8. ADVANCE RULINGS
1. Each Party shall provide for written advance rulings in a reasonable, time-bound manner to be issued to a person described in sub-paragraph 2 (a) concerning tariff classification, whether a good is originating under this Agreement.
2. Each Party shall adopt or maintain procedures for issuing written advance rulings, which shall:
(a) Provide that an exporter, importer or any person with a justifiable cause, or a representative thereof, may apply for an advance ruling, before the date of importation of the goods that are the subject of the application. A Party may require that an applicant have legal representation or registration in its territory;
(b) Include a detailed description of the information required to process a request for an advance ruling;
(c) Allow its customs administration, at any time during the course of an evaluation of an application for an advance ruling, to request that the applicant provide additional information necessary to evaluate the request;
(d) Ensure that an advance ruling be based on the facts and circumstances presented by the applicant and any other relevant information in the possession of the decision-maker; and
(e) Provide that the ruling be issued, in the national language of the issuing customs administration, to the applicant, expeditiously on receipt of all necessary information, within 90 days.
3. A Party that declines to issue an advance ruling shall promptly notify the applicant in writing, setting forth the basis for its decision to decline to issue the advance ruling.
4. A Party may reject requests for an advance ruling where the additional information requested in accordance with paragraph 2 (c) is not provided within the specified period.
5. Each Party shall endeavor to make information on advance rulings which it considers to be of significant interest to other traders, publicly available, taking into account the need to protect confidential information.
6. Subject to paragraph 7, each Party shall apply an advance ruling to importations into its territory through any port of entry, beginning on the date the advance ruling was issued or on any other date specified in the advance ruling. The Party shall ensure the same treatment of all importations of goods subject to the advance ruling during the validity period regardless of the importer or exporter involved, where the facts and circumstances are identical in all material respects.
7. A Party may modify or revoke an advance ruling, consistent with this Agreement, where:
(a) There is a change in the laws or regulations;
(b) Incorrect information was provided or relevant information is withheld;
(c) There is a change in a material fact; or
(d) There is a change in the circumstances on which the ruling was based.
Article 4.9. REVIEW AND APPEAL
Each Party shall, in accordance with its domestic laws and regulations, provide that the importer, exporter or any other person affected by its administrative decisions on a customs matter, have access to:
(a) A level of administrative review of decisions by its customs administrations independent of the official or office responsible for the decision under review; and
(b) Judicial review of the decisions subject to its laws and regulations.
Article 4.10. APPLICATION OF INFORMATION TECHNOLOGY
Each Party shall apply information technology to support customs operations, where it is cost-effective and efficient, particularly in the paperless trading context, taking into account developments in this area within relevant international organizations, including the World Customs Organization.
Article 4.11. RISK MANAGEMENT
1. Each Party shall adopt and maintain a risk management system for customs control and based on it, the Party shall determine which persons, goods or means of transport are to be examined and the extent of the examination.
2. Each Party shall work to further enhance the use of risk management techniques in the administration of its customs procedures so as to facilitate the clearance of low-risk goods and to allow resources to focus on high-risk goods.
3. Risk management shall be applied in such a manner that it does not create arbitrary or unjustifiable discrimination under the same conditions or disguised restriction on international trade.
Article 4.12. 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. For greater certainty, this paragraph shall not require a Party to release goods where its requirements for release have not been met.
2. In accordance with paragraph 1, each Party shall adopt or maintain procedures that:
(a) Provide for the release of goods as rapidly as possible after arrival, provided all other regulatory requirements have been met;
(b) As appropriate, provide for advance electronic submission and processing of information before the physical arrival of goods with a view to expediting the release of goods; and
(c) May allow importers to obtain the release of goods prior to meeting all import requirements of that Party if the importer provides sufficient and effective guarantee and where it is decided that neither further examination, physical inspection nor any other submission is required.
3. Each Party shall endeavor to adopt and maintain a system under which goods in need of urgent clearance can obtain prompt customs clearance.
4. Each Party shall ensure that goods are released within a time period no longer than that required to ensure compliance with its customs laws.
Article 4.13. AUTHORIZED ECONOMIC OPERATOR
A Party operating an Authorized Economic Operator System or security measures affecting international trade flows shall:
(a) Afford the other Party the possibility to negotiate mutual recognition of authorization and security measures for the purpose of facilitating international trade while ensuring effective customs control; and
(b) Draw on relevant international standards, in particular the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade.
Article 4.14. BORDER AGENCY COOPERATION
1. Each Party shall ensure that its authorities and agencies involved in border controls related to import, export or transit of goods, cooperate and coordinate their procedures in order to facilitate trade.
2. Each Party shall endeavor to establish, as far as practicable, an electronic means for communication of relevant information required by its customs administration and other relevant border agencies to facilitate the international movement of goods and means of transport.
Article 4.15. CONSULTATION
1. The customs administration of each Party may at any time request consultations with the customs administration of the other Party, on any matter arising from the implementation or operation of this Chapter, in cases where there are reasonable grounds or truth provided by the requesting Party. Such consultations shall be conducted through the relevant contact points, and shall take place within 60 days of the request, or any other possible time period that the Parties may mutually determine.
2. In the event that such consultations fail to resolve any such matter, the requesting Party may refer the matter to the FTA Joint Commission referred to in Article
14.1 (FTA Joint Commission) and Article 14.2 (Rules of Procedure of the FTA Joint Commission) of Chapter 14 (Institutional Provisions) for further consideration.
3. Each customs administration shall designate one or more contact points for the purposes of this Chapter. Information on the contact points shall be provided to the other Party and any amendment of the said information shall be notified promptly.
Chapter 5. SANITARY AND PHYTOSANITARY MEASURES
Article 5.1. OBJECTIVES
The objectives of this Chapter are to:
(a) Facilitate trade between the Parties while protecting human, animal or plant life or health in their territories;
(b) Ensure transparency in and deepen mutual understanding of the application of each Party's Sanitary and Phytosanitary Measures (hereinafter referred to as "SPS measures")
(c) Strengthen cooperation between the Parties; and
(d) Facilitate implementation of the principles of the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A of the WTO Agreement (hereinafter referred to as "the SPS Agreement").
Article 5.2. SCOPE
This Chapter shall apply to all SPS measures of the Parties, which may, directly or indirectly, affect trade between the Parties.
Article 5.3. DEFINITIONS
For purposes of this Chapter, the definitions in Annex A of the SPS Agreement shall apply.
Article 5.4. AFFIRMATION OF THE SPS AGREEMENT
The Parties affirm their rights and obligations with respect to each other under the SPS Agreement.
Article 5.5. RISK ASSESSMENT
The Parties shall ensure that their SPS measures are based on an assessment, as appropriate to the circumstances, of the risks to human, animal, or plant life or health as provided in Article 5 of the SPS Agreement, taking into account the risk assessment techniques developed by the relevant international organizations.