(a) fuel, energy, catalysts and solvents;
(b) equipment, devices and supplies used to test or inspect the good;
(c) gloves, glasses, footwear, clothing, safety equipment and supplies;
(d) tools, dies and moulds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings; and
(g) any other material that is not incorporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production;
material means a good that is used in the production of another good;
non-originating good or non-originating material means a good or material that does not qualify as originating in accordance with this Chapter;
originating good or originating material means a good or material that qualifies as originating in accordance with this Chapter;
packing materials and containers for shipment means goods used to protect another good during its transportation, but does not include the packaging materials or containers in which a good is packaged for retail sale;
producer means a person who engages in the production of a good;
production means operations including growing, cultivating, raising, mining, harvesting, fishing, trapping, hunting, capturing, collecting, breeding, extracting, aquaculture, gathering, manufacturing, processing or assembling a good;
transaction value means the price actually paid or payable for the good when sold for export or other value determined in accordance with the Customs Valuation Agreement; and
value of the good means the transaction value of the good excluding any costs incurred in the international shipment of the good.
Article 3.2. Originating Goods
Except as otherwise provided in this Chapter, each Party shall provide that a good is originating if it is:
(a) wholly obtained or produced entirely in the territory of one or both Parties as established in Article 3.3;
(b) produced entirely in the territory of one or both Parties, exclusively from originating materials; or
(c) produced entirely in the territory of one or both Parties using non-originating materials provided the good satisfies all applicable requirements of Annex 3- B,
and the good satisfies all other applicable requirements of this Chapter.
Article 3.3. Wholly Obtained or Produced Goods
Each Party shall provide that for the purposes of Article 3.2, a good is wholly obtained or produced entirely in the territory of one or both Parties if it is:
(a) a plant or plant good, grown, cultivated, harvested, picked or gathered there;
(b) a live animal born and raised there;
(c) a good obtained from a live animal there;
(d) an animal obtained by hunting, trapping, fishing, gathering or capturing there;
(e) a good obtained from aquaculture there;
(f) a mineral or other naturally occurring substance, not included in subparagraphs (a) through (e), extracted or taken from there;
(g) fish, shellfish, other goods of sea-fishing and other marine life taken from the sea, seabed or subsoil outside the territories of the Parties and, in accordance with international law, outside the territorial sea of non-Parties (1) by vessels that are registered or recorded with a Party and entitled to fly the flag of that Party;
(h) a good produced from goods referred to in subparagraph (g) on board a factory ship that is registered or recorded with a Party and entitled to fly the flag of that Party;
(i) a good other than fish, shellfish, other goods of sea-fishing and other marine life taken by a Party or a person of a Party from the seabed or subsoil outside the territories of the Parties, and beyond areas over which non-Parties exercise jurisdiction provided that Party or person of that Party has the right to exploit that seabed or subsoil in accordance with international law;
(j) a good that is:
(i) waste or scrap derived from production there, provided that such goods are fit only for the recovery of raw materials; or
(ii) waste or scrap derived from used goods collected there, provided that those goods are fit only for the recovery of raw materials; and
(k) a good produced there, exclusively from goods referred to in subparagraphs (a) through (j), or from their derivatives.
Article 3.4. Regional Value Content
Each Party shall provide that a regional value content requirement specified in this Chapter, including Annex 3-B, to determine whether a good is originating, is calculated as follows:
(a) build-down method: based on the value of non-originating materials:
RVC = Value of the Good - VNM x100
Value of the Good
(b) build-up method: based on the value of originating materials:
RVC = VOM x100
Value of the Good
where:
RVC is the regional value content of a good, expressed as a percentage;
VNM is the value of non-originating materials, including materials of undetermined origin, used in the production of the good;
VOM is the value of originating materials used in the production of the good in the territory of one or both Parties.
2. Each Party shall provide that all costs considered for the calculation of regional value content are recorded and maintained in conformity with the Generally Accepted Accounting Principles applicable in the territory of the Party where the good is produced.
Article 3.5. Materials Used In Production
1. Each Party shall provide that if a non-originating material undergoes further production such that it satisfies the requirements of this Chapter, the material is treated as originating when determining the originating status of the subsequently produced good, regardless of whether that material was produced by the producer of the good.
2. Each Party shall provide that if a non-originating material is used in the production of a good, the following may be counted as originating content for the purpose of determining whether the good meets a regional value content requirement:
(a) the value of processing of the non-originating materials undertaken in the territory of one or both Parties; and
(b) the value of any originating material used in the production of the non- originating material undertaken in the territory of one or both Parties.
Article 3.6. Value of Materials Used In Production
Each Party shall provide that for the purposes of this Chapter, the value of a material is:
(a) for a material imported by the producer of the good, the transaction value of the material at the time of importation, including the costs incurred in the international shipment of the material;
(b) for a material acquired in the territory where the good is produced:
(i) the price paid or payable by the producer in the Party where the producer is located;
(ii) the value as determined for an imported material in subparagraph (a); or
(iii) the earliest ascertainable price paid or payable in the territory of the Party; or
(c) for a material that is self-produced:
(i) all the costs incurred in the production of the material, which includes general expenses; and
(ii) an amount equivalent to the profit added in the normal course of trade,
or equal to the profit that is usually reflected in the sale of goods of the same class or kind as the self-produced material that is being valued.
Article 3.7. Further Adjustments to the Value of Materials
1. Each Party shall provide that for an originating material, the following expenses may be added to the value of the material, if not included under Article 3.6:
(a) the costs of freight, insurance, packing and all other costs incurred to transport the material within the territories of the Parties to the location of the producer of the good;
(b) duties, taxes and customs brokerage fees on the material, paid in the territory of one or both Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, which include credit against duty or tax paid or payable; and
(c) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.
2. Each Party shall provide that, for a non-originating material or material of undetermined origin, the following expenses may be deducted from the value of the material:
(a) the costs of freight, insurance, packing and all other costs incurred in transporting the material within the territories of the Parties to the location of the producer of the good;
(b) duties, taxes and customs brokerage fees on the material paid in the territory of one or both Parties, other than duties and taxes that are waived, refunded, refundable or otherwise recoverable, which include credit against duty or tax paid or payable; and
(c) the cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of reusable scrap or by-product.
3. If the cost or expense listed in paragraph 1 or 2 is unknown or documentary evidence of the amount of the adjustment is not available, then no adjustment is allowed for that particular cost.
Article 3.8. Accumulation
1. Originating goods or materials of a Party, incorporated into a good in the territory of the other Party, shall be considered to be originating in the territory of the other Party.
2. A good shall be considered originating where the good is produced in the territory of one or both Parties by one or more producers, provided that the good satisfies the requirements established in Article 3.2 and all other applicable requirements in this Chapter.
Article 3.9. De Minimis
1. Each Party shall provide that a good that contains non-originating materials that do not satisfy the applicable change in tariff classification requirement specified in Annex 3-B for the good is nonetheless an originating good if:
(a) the value of all these materials does not exceed 10 per cent of the value of the good, as defined under Article 3.1, or
(b) the good is classified in Chapters 50 through 63 of the Harmonized System, the total weight of all such materials does not exceed 10 per cent of the total weight of the good,
and the good meets all the other applicable requirements of this Chapter.
2. Paragraph 1 shall apply only when using a non-originating material in the production of another good.
3. If a good described in paragraph 1 is also subject to a regional value content requirement, the value of those non-originating materials shall be included in the value of non-originating materials for the applicable regional value content requirement.
Article 3.10. Fungible Goods or Materials
Each Party shall provide that a fungible good or material is treated as originating based on the:
(a) physical segregation of each fungible good or material; or
(b) use of any inventory management method recognised in the Generally Accepted Accounting Principles if the fungible good or material is commingled, provided that the inventory management method selected is used throughout the fiscal year of the person that selected the inventory management method.
Article 3.11. Accessories, Spare Parts, Tools and Instructional or other Information Materials
1. Each Party shall provide that:
(a) in determining whether a good is wholly obtained or satisfies a process or change in tariff classification requirement as set out in Annex 3-B, accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, are to be disregarded; and
(b) in determining whether a good meets a regional value content requirement, the value of the accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, are to be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
2. Each Party shall provide that a good's accessories, spare parts, tools or instructional or other information materials, as described in paragraph 3, have the originating status of the good with which they are delivered.
3. For the purposes of this Article, accessories, spare parts, tools, and instructional or other information materials are covered when:
(a) the accessories, spare parts, tools and instructional or other information materials are classified with, delivered with but not invoiced separately from the good; and
(b) the types, quantities and value of the accessories, spare parts, tools and instructional or other information materials are customary for that good.
Article 3.12. Packaging Materials and Containers for Retail Sale
1. Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good, are disregarded in determining whether all the non-originating materials used in the production of the good have satisfied the applicable process or change in tariff classification requirement set out in Annex 3-B or whether the good is wholly obtained or produced entirely.
2. Each Party shall provide that if a good is subject to a regional value content requirement, the value of the packaging materials and containers in which the good is packaged for retail sale, if classified with the good, are taken into account as originating or non-originating, as the case may be, in calculating the regional value content of the good.
Article 3.13. Packing Materials and Containers for Shipment
Each Party shall provide that packing materials and containers for shipment are disregarded in determining whether a good is originating.
Article 3.14. Indirect Materials
Each Party shall provide that an indirect material is considered to be originating without regard to where it is produced.
Article 3.15. Sets of Goods
1. Each Party shall provide that for a set classified as a result of the application of rule 3(a) or (b) of the General Rules for the Interpretation of the Harmonized System, the originating status of the set shall be determined in accordance with the product-specific tule of origin that applies to the set.
2. Each Party shall provide that for a set classified as a result of the application of rule 3(c) of the General Rules for the Interpretation of the Harmonized System, the set is originating only if each good in the set is originating and both the set and the goods meet the other applicable requirements of this Chapter.
3. Notwithstanding paragraph 2, for a set classified as a result of the application of tule 3(c) of the General Rules for the Interpretation of the Harmonized System, the set is originating if the value of all the non-originating goods in the set does not exceed 20 per cent of the value of the set.
4. For the purposes of paragraph 3, the value of the non-originating goods in the set and the value of the set shall be calculated in the same manner as the value of non- originating materials and the value of the good.
Article 3.16. Transport Through Non- Parties
Each Party shall provide that if an originating good is transported from the exporting Party to the importing Party through the territory of one or more non-Parties, the good retains its originating status provided that the good does not undergo subsequent production or any other operation in non-Parties, other than unloading, reloading, storing, separating from a bulk shipment, labelling or any other operation necessary to preserve it in good condition or to transport the good to the territory of the importing Party and the good remains under customs control in the territory of that or those non-Parties.
Section B. Origin Procedures
Article 3.17. Claims for Preferential Treatment
1. Each Party shall provide that an importer may make a claim for preferential tariff treatment, based on certificate of origin completed by the exporter, producer, or an authorised representative of the exporter or producer.
2. Each Party shall provide that the certificate of origin:
(a) need not follow a prescribed format;
(b) be in writing;
(c) specifies that the good is both originating and meets the requirements of this Chapter;
(d) contains a set of data requirements as set out in Annex 3-A; and
(e) be in English or in Spanish. The importing Party may require the importer to submit a translation in the language of the importing Party.
3. Each Party shall provide that a certificate of origin may apply to: (a) asingle shipment of a good into the territory of a Party; or (b) multiple shipments of identical goods within any period specified in the certificate of origin, from or after the date of issuance but not exceeding the period of validity of the certificate.
4. Each Party shall provide that the certificate of origin is valid for one year after the date that it was issued or for such longer period specified by the laws and regulations of the importing Party.
Article 3.18. Basis of a Certificate of Origin
1. Each Party shall provide that if a producer certifies the origin of a good, the certificate of origin is completed on the basis of the producer having information that the good is originating.
2. Each Party shall provide that if the exporter is not the producer of the good, the certificate of origin may be completed by the exporter of the good on the basis of:
(a) the exporter having information that the good is originating; or
(b) reasonable reliance on the producer's information that the good is originating.
3. Each Party shall provide that a certificate of origin may be completed by an authorised representative of an exporter or producer of the good on the basis of reasonable reliance on supporting documentation provided by the exporter or producer that the good is originating.
4. For greater certainty, nothing in paragraph 1 or 2 shall be construed to allow a Party to require an exporter or producer to complete or provide a certificate of origin to another person.
Article 3.19. Discrepancies and Minor Errors
Each Party shall provide that it shall not reject a certificate of origin due to minor errors contained in it, such as typing errors, or discrepancies with other documentation (2), provided the errors or discrepancies do not cast doubt on the origin of the good.
Article 3.20. Waiver of Certificate of Origin
Neither Party shall require a certificate of origin if:
(a) the customs value of the importation does not exceed AUD $1000 for Australia or US $800 for Peru, or any higher amount as the importing Party may establish; or
(b) itis a good for which the importing Party has waived the requirement or does not require the importer to present a certificate of origin,
provided that the importation does not form part of a series of importations carried out or planned for the purpose of evading compliance with the importing Party's laws governing claims for preferential tariff treatment under this Agreement.
Article 3.21. Obligations Relating to Importation
1. Except as otherwise provided for in this Chapter, each Party shall provide that, for the purpose of claiming preferential tariff treatment, the importer shall:
(a) declare that the good qualifies as an originating good;
(b) have valid a certificate of origin in its possession at the time the declaration referred to in subparagraph (a) is made;
(c) provide a copy of the certificate of origin to the importing Party if required by the Party; and
(d) if required by a Party to demonstrate that the requirements in Article 3.16 have been satisfied, provide transport documents, and in the case of storage, additional relevant documents, such as storage or customs documents. If the good has been transported directly from the territory of the exporting Party to the importing Party nothing shall prevent a Party from requiring the importer to present transport documents which show that the good has been transported from the territory of the exporting Party to the importing Party.
2. Each Party shall provide that, if the importer has reason to believe that the certificate of origin is based on incorrect information that could affect the accuracy or validity of the certificate of origin, the importer shall correct the importation document and pay any customs duty and, if applicable, penalties owed.
3. Neither Party shall subject an importer to a penalty for making an invalid claim for preferential tariff treatment if the importer, on becoming aware that such a claim is not valid and prior to discovery of the error by that Party, voluntarily corrects the claim and pays any applicable customs duty under the circumstances provided for in the Party's law.
Article 3.22. Record Keeping Requirements
1. Each Party shall provide that an importer claiming preferential tariff treatment for a good imported into the territory of that Party shall maintain documentation related to the importation, including the certificate of origin that served as the basis for the claim, for a period of no less than five years from the date of importation of the good.
2. Each Party shall provide that a producer or exporter in its territory that provides a certificate of origin shall maintain all records necessary to demonstrate that a good for which the exporter or producer provided the certificate of origin is originating, for a period of no less than five years from the date the certificate of origin was issued.
(a) be in English or in the official language of the Party of the person to whom the request is made;