(b) if the product was shipped through or transhipped outside the territories of the Parties, a copy of the customs control documents indicating to that customs authority that the product remained under customs control while outside the territories of the Parties.
Article 3.20. Importation by Instalments
If, at the request of the importer and on the conditions laid down by the customs authority of the Party of import, dismantled or non-assembled products within the meaning of Rule 2(a) of the General Rules for the Interpretation of the Harmonized System falling within Sections XVI and XVII or headings 7308 and 9406 of the Harmonized System are imported by instalments, a single origin declaration for these products shall be submitted, as required, to that customs authority upon importation of the first instalment.
Article 3.21. Exemptions from Origin Declarations
1. A Party may, in conformity with its legislation, waive the requirement to present an origin declaration as referred to in Article 3.18 for low value shipments of originating products from the other Party and for originating products forming part of the personal luggage of a traveller coming from the other Party.
2. A Party may exclude any importation from the provisions of paragraph 1 when the importation is part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the requirements of this Chapter related to origin declarations.
3. The Parties may set value limits for products referred to in paragraph 1, and shall exchange information regarding those limits.
Article 3.22. Supporting Documents
The documents referred to in Article 3.16(2) may include documents relating to the following:
(a) the production processes carried out on the originating product or on materials used in the production of that product;
(b) the purchase of, the cost of, the value of and the payment for the product;
(c) the origin of, the purchase of, the cost of, the value of and the payment for all materials, including neutral elements, used in the production of the product; and
(d) the shipment of the product.
Article 3.23. Preservation of Records
1. Each Party shall require that an exporter that has completed an origin declaration keep a copy of the origin declaration, as well as the supporting documents referred to in Article 3.22, for three years after the completion of the origin declaration or for a longer period as the Party of export may specify.
2. Each Party shall provide that if an exporter has based an origin declaration on a written statement from the producer, the producer must be required to maintain records in accordance with paragraph 1.
3. When provided for in the legislation of the Party of import, an importer that has been granted preferential tariff treatment shall keep documentation relating to the importation of the product, including a copy of the origin declaration, for three years after the date on which preferential treatment was granted, or for a longer period of time as that Party may specify.
4. Each Party shall permit, in accordance with that Party's legislation, importers, exporters, and producers in its territory to maintain documentation or records in any medium, provided that the documentation or records can be retrieved and printed.
5. A Party may deny preferential tariff treatment to a product that is the subject of an origin verification when the importer, exporter, or producer of the product that is required to maintain records or documentation under this Article:
(a) fails to maintain records or documentation relevant to determining the origin of the product in accordance with the requirements of this Chapter; or
(b) denies access to those records or documentation.
Article 3.24. Discrepancies and Formal Errors
1. The discovery of slight discrepancies between the statements made in the origin declaration and those made in the documents submitted to the customs authorities for the purpose of carrying out the formalities for importing a product does not, because of that fact, render the origin declaration null and void if it is established that this document corresponds to the product submitted.
2. Obvious formal errors, such as typing errors, on an origin declaration shall not cause this document to be rejected if these errors do not create doubts concerning the correctness of the statements made in the document.
Article 3.25. Cooperation
1. The Parties shall cooperate in the uniform administration and interpretation of this Chapter and, through their customs authorities, assist each other in verifying the originating status of a product on which an origin declaration is based.
2. For the purpose of facilitating the verifications or assistance referred to in paragraph 1, the customs authorities of the Parties shall provide each other with addresses of the responsible customs authorities.
3. It is understood that the customs authority of the Party of export assumes all expenses in carrying out paragraph 1.
4. It is further understood that the customs authorities of the Parties will discuss the overall operation and administration of the verification process, including forecasting of workload and discussing priorities. If there is an unusual increase in the 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.
5. With respect to products considered originating in accordance with Article 3.3, the Parties may cooperate with a non-Party to develop customs procedures based on the principles of this Chapter.
Article 3.26. Origin Verification
1. For the purpose of ensuring the proper application of this Chapter, the Parties shall assist each other, through their customs authorities, in verifying whether a product is originating and ensuring the accuracy of a claim for preferential tariff treatment.
2. The Parties shall ensure that a request for an origin verification concerning whether a product is originating or whether all other requirements of this Chapter are fulfilled is:
(a) based on risk assessment methods applied by the customs authority of the Party of import, which may include random selection; or
(b) made when the Party of import has reasonable doubts.
3. The customs authority of the Party of import may verify whether a product is originating by requesting, in writing, that the customs authority of the Party of export conduct a verification concerning whether a product is originating. When requesting a verification, the customs authority of the Party of import shall provide the customs authority of the Party of export with:
(a) the identity of the customs authority issuing the request;
(b) the name of the exporter or producer to be verified;
(c) the subject and scope of the verification; and
(d) a copy of the origin declaration and, where applicable any other relevant documentation.
4. If appropriate, the customs authority of the Party of import may request, pursuant to paragraph 3, specific documentation and information from the customs authority of the Party of export.
5. A request made by the customs authority of the Party of import pursuant to paragraph 3 shall be provided to the customs authority of the Party of export by certified or registered mail or any other method that produces a confirmation of receipt by that customs authority.
6. The origin verification shall be carried out by the customs authority of the Party of export. For this purpose, the customs authority may, in accordance with its legislation, request documentation, call for any evidence, or visit the premises of an exporter or a producer to review the records referred to in Article 3.22 and observe the facilities used in the production of the product.
7. If an exporter has based an origin declaration on a written statement from the producer or supplier, the exporter may arrange for the producer or supplier to provide documentation or information directly to the customs authority of the Party of export upon that Party's request.
8. As soon as possible and in any event within 12 months after receiving the request referred to in paragraph 3, the customs authority of the Party of export shall complete a verification of whether the product is originating, and fulfils the other requirements of this Chapter, and shall:
(a) provide to the customs authority of the Party of import, by certified or registered mail or any other method that produces a confirmation of receipt by that customs authority, a written report in order for it to determine whether the product is originating or not that contains:
(i) the result of the verification,
(ii) the description of the product subject to verification and the tariff classification relevant to the application of the rule of origin,
(iii) a description and explanation of the production sufficient to support the rationale concerning the originating status of the product,
(iv) information on the manner in which the verification was conducted, and
(v) if appropriate, supporting documentation; and
(b) subject to its legislation, notify the exporter of its decision concerning whether the product is originating.
9. The period of time referred to in paragraph 8 may be extended by mutual consent of the customs authorities concerned.
10. Pending the results of an origin verification conducted pursuant to paragraph 8, the customs authority of the Party of import, subject to any precautionary measures it deems necessary, shall offer to release the product to the importer.
11. Where a written report has not been provided in accordance with sub‑paragraph 8(a), or where the customs authority of the Party of import is unable to arrive at a conclusion as to whether a product is originating, that customs authority may deny preferential tariff treatment to the product.
12. If there are differences in relation to the verification procedure of this Article or in the interpretation of the rules of origin in determining whether a product qualifies as originating, and these differences cannot be resolved through consultations between the customs authority requesting the verification and the customs authority responsible for performing the verification, the Parties are encouraged to resolve those differences within the Subcommittee on Origin Procedures.
13. This Chapter does not prevent a customs authority of a Party from issuing a determination of origin or an advance ruling relating to any matter under consideration by the Subcommittee on Origin Procedures, or the Committee on Trade in Goods and Rules of Origin or from taking any other action that it considers necessary, pending a resolution of the matter under this Agreement.
Article 3.27. Review and Appeal
1. Each Party shall grant substantially the same rights of review and appeal of determinations of origin and advance rulings issued by its customs authority as it provides to importers in its territory, to any person who:
(a) has received a decision on origin in the application of this Chapter; or
(b) has received an advance ruling pursuant to Article 3.30(1).
2. Further to Articles 15.4 (Administrative Proceedings) and 15.5 (Review and Appeal), each Party shall provide that the rights of review and appeal referred to in paragraph 1 include access to at least two levels of appeal or review including at least one judicial or quasi-judicial level.
Article 3.28. Penalties
Each Party shall maintain measures imposing criminal, civil or administrative penalties for violations of its legislation relating to this Chapter.
Article 3.29. Confidentiality
1. This Chapter does not require a Party to furnish or allow access to business information or to information relating to an identified or identifiable natural person, the disclosure of which would impede law enforcement or would be contrary to that Party's law protecting business information and personal data and privacy.
2. Each Party shall maintain, in conformity with its law, the confidentiality of the information collected pursuant to this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information. If the Party receiving or obtaining the information is required by its legislation to disclose the information, that Party shall notify the person or Party who provided that information.
3. Each Party shall ensure that the confidential information collected pursuant to this Chapter is not used for purposes other than the administration and enforcement of determination of origin and of customs matters, except with the permission of the person or Party who provided the confidential information.
4. Notwithstanding paragraph 3, a Party may allow information collected pursuant to this Chapter to be used in any administrative, judicial or quasi-judicial proceeding instituted for failure to comply with customs related legislation implementing this Chapter. A Party shall notify the person or Party who provided the information in advance of this use.
5. The Parties shall exchange information on their respective law concerning data protection for the purpose of facilitating the operation and application of paragraph 2.
Article 3.30. Advance Rulings Relating to Origin
1. Each Party shall, through its customs authority, provide for the expeditious issuance of written advance rulings, prior to the importation of a product into its territory, on the request of an importer in its territory or an exporter or a producer in the territory of the other Party, concerning whether a product qualifies as an originating product under this Chapter.
2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including a detailed description of the information reasonably required to process an application for a ruling.
3. Each Party shall provide that its customs authority:
(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 150 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.
4. If 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 authority; or
(c) a judicial or quasi-judicial review in the customs authority's territory;
the customs authority, in conformity with its legislation, may decline or postpone the issuance of the ruling.
5. Subject to paragraph 7, 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.
6. Each Party shall provide, to any person requesting an advance ruling, the same treatment as it provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.
7. The Party issuing an advance ruling may modify or revoke an advance ruling:
(a) if the ruling is based on an error of fact;
(b) if there is a change in the material facts or circumstances on which the ruling is based;
(c) to conform with an amendment of Chapter 2 (National Treatment and Market Access) or this Chapter; or
(d) to conform with a judicial decision or a change in that Party's law.
8. Each Party shall provide that a modification or revocation of an advance ruling 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.
9. Notwithstanding paragraph 8, the Party issuing the advance ruling may, in conformity with its law, postpone the effective date of a modification or revocation for no more than six months.
10. Subject to paragraph 7, each Party shall provide that an advance ruling remains in effect and is honoured.
Article 3.31. The Subcommittee on Origin Procedures
1. The Parties continue the Subcommittee on Origin Procedures established under the 2017 Agreement, composed of representatives of each Party, to consider any matter arising under Section C – Origin Procedures.
2. The Subcommittee on Origin Procedures shall meet on the request of either Party and endeavour to decide upon:
(a) the uniform administration and interpretation of the rules of origin, including tariff classification and valuation matters relating to the rules of origin;
(b) technical, interpretive or administrative matters that may arise under Section C – Origin Procedures; and
(c) any other matter referred to it by the Committee on Trade in Goods and Rules of Origin.
3. The Subcommittee on Origin Procedures reports to the Committee on Trade in Goods and Rules of Origin.
Chapter 4. Trade Facilitation
Article 4.1. Objectives, Principles, and General Provisions
1. The Parties acknowledge the importance of customs and trade facilitation matters in the evolving global trading environment.
2. The Parties shall, to the extent possible, cooperate and exchange information, including information on best practices, to promote the application of and compliance with the trade facilitation measures in this Agreement.
3. Each Party shall ensure that its measures to facilitate trade do not hinder mechanisms to protect a person through effective enforcement of and compliance with its law.
4. Each Party shall ensure that its import, export and transit requirements and procedures are no more administratively burdensome or trade restrictive than necessary to achieve a legitimate objective.
5. Each Party shall use existing international trade and customs instruments and standards as a basis for its import, export and transit requirements and procedures, unless they would be an inappropriate or ineffective means for the fulfilment of the legitimate objective pursued.
Article 4.2. Transparency
1. Each Party shall publish or otherwise make available, including electronically, its legislation, judicial decisions and administrative policies relating to import or export requirements.
2. Each Party shall endeavour to make public, including on the internet, proposed regulations and administrative policies relating to customs matters and to provide interested persons an opportunity to comment prior to their adoption.
3. Each Party shall designate or maintain one or more contact points to address inquiries by interested persons concerning customs matters and make available, including on the internet, information concerning the procedures for making these inquiries.
Article 4.3. 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 and reduce costs for importers and exporters. Each Party shall ensure that its procedures:
(a) allow for the release of goods within a period of time no longer than that required to ensure compliance with its law;
(b) require the submission of more extensive information through post-entry accounting and verifications, as appropriate;
(c) allow goods, and to the extent possible controlled or regulated goods, to be released at the first point of arrival;
(d) allow, to the extent possible, for the expeditious release of goods in need of emergency clearance;
(e) allow an importer or its agent to remove goods from customs control prior to the final determination and payment of customs duties, taxes, and fees. Before releasing the goods, a Party may require that an importer provide sufficient guarantee in the form of a surety, a deposit, or some other appropriate instrument. The guarantee shall be limited to an amount calculated to ensure compliance with a Party's requirements for customs duties, taxes and fees, and shall not represent an indirect protection of domestic products or taxation of imports for fiscal purposes; and
(f) provide for, in accordance with its law, simplified documentation requirements for the entry of low‑value goods as determined by each Party.
2. Each Party shall adopt or maintain separate customs procedures for the expedited release of express shipments. These procedures shall:
(a) when applicable, use the World Customs Organization (WCO), Guidelines for the Immediate Release of Consignments by Customs, as amended;
(b) to the extent possible or if applicable, provide for advance electronic submission and processing of information before physical arrival of express shipments to enable their release upon arrival;
(c) to the extent possible, provide for clearance of certain goods with a minimum of documentation;
(d) not be limited by a maximum weight; and
(e) provide for, in accordance with a Party's legislation, simplified documentation requirements for the entry of low‑value goods as determined by that Party.
3. Each Party shall ensure, to the extent possible, that its authorities and agencies involved in border and other import and export controls cooperate and coordinate to facilitate trade by, among other things, converging import and export data and documentation requirements and establishing a single location for one-time documentation and physical verification of consignments.
4. Each Party shall ensure, to the extent possible, that its import and export requirements are coordinated to facilitate trade, regardless of whether these requirements are administered by an agency or on behalf of that agency by the customs authority.
Article 4.4. Customs Valuation
The Customs Valuation Agreement governs customs valuation applied to reciprocal trade between the Parties.
Article 4.5. Fees and Charges
Each Party shall publish or otherwise make available information on fees and charges imposed by its customs authority, including electronically. This information shall include the applicable fees and charges, the specific reason for the fee or charge, the responsible authority, and when and how payment is to be made. A Party shall not impose new or amended fees and charges until it publishes or otherwise makes available this information.
Article 4.6. Risk Management
1. Each Party shall base its examination, release, and post-entry verification procedures on risk assessment principles, rather than requiring each shipment offered for entry to be examined in a comprehensive manner for compliance with import requirements.
2. Each Party shall adopt and apply its import, export and transit requirements and procedures for goods on the basis of risk management principles that focus compliance measures on transactions that merit attention.
3. Paragraphs 1 and 2 do not preclude a Party from conducting a quality control and compliance review that may require more extensive examinations.
Article 4.7. Automation
1. Each Party shall use information technologies that expedite its domestic procedures for the release of goods in order to facilitate trade, including trade between the Parties.
2. Each Party shall:
(a) endeavour to make available electronically customs forms that are required for the import or export of goods;
(b) allow, subject to its law, those customs forms to be submitted in electronic format; and
(c) if possible, provide for the electronic exchange of information with its trading community through its customs authority.
3. Each Party shall endeavour to:
(a) develop or maintain fully interconnected single window systems to facilitate a single electronic submission of information required by customs and non-customs legislation for cross-border movements of goods; and
(b) develop a set of data elements and processes in accordance with the WCO Data Model and related WCO recommendations and guidelines.
4. The Parties shall endeavour to cooperate on the development of interoperable electronic systems, taking account of the work at the WCO, in order to facilitate trade between the Parties.
Article 4.8. Advance Rulings for Tariff Classification
1. Subject to Chapter 3 (Rules of Origin and Origin Procedures), a Party shall issue a written ruling prior to an importation in response to a written request by an importer in its territory, exporter or producer in the territory of the other Party, or their respective representatives.
2. A Party shall issue these rulings for tariff classification or rate of customs duty, except with respect to any form of surtax or surcharge, applicable upon importation.
3. For the purposes of paragraph 1, the issuance of advance rulings shall be administered in the same manner as the procedures set out in Article 3.30 (Advance Rulings relating to Origin).
Article 4.9. Review and Appeal
1. Each Party shall ensure that an administrative action or official decision taken in respect of the import of goods is promptly reviewable by judicial, arbitral, or administrative tribunals or through administrative procedures.