1. Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification set out in Annex 3-A.
2. If a good is subject to a regional value content requirement, the value of packaging materials and containers described in paragraph 1 shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
3. Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether the good is wholly obtained or produced entirely in the territory of one or both of the Parties within the meaning of Article 3.2.
Article 3.12. Packing Materials and Containers for Shipment
The packing materials and containers for transportation and shipment shall not be taken into account when determining the origin of the good.
Article 3.13. Indirect Materials
In order to determine whether a good is originating, the origin of indirect materials shall not be taken into account.
Article 3.14. Non-qualifying Operation
Notwithstanding other provisions of this Chapter, a good shall not be considered to be originating merely by reason of going through one or a combination of the following operations or processes:
(a) preserving operations to ensure that the goods remain in good condition during transport and storage;
(b) change of packaging, or breaking-up or assembly of packages;
(c) washing, cleaning, removal of dust, oxide, oil, paint or other coverings;
(d) ironing or pressing of textiles;
(e) simple (5) painting and polishing operations;
(f) husking, partial or total bleaching, polishing, and glazing of cereals and rice; (g) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(h) affixing marks, labels, logos, and other like distinguishing signs on the good or its packaging;
(i) simple mixing of products, whether or not of different kinds; mixing of sugar with any material; operations to color or flavor sugar or form sugar lumps; partial or total milling of crystal sugar;
(j) simple assembly of parts of goods to constitute a complete good or disassembly of goods into parts;
(k) slaughter of animals;
(l) peeling, stoning, and shelling of fruits, nuts, and vegetables;
(m) sharpening, simple grinding, or simple cutting; or
(n) sifting, screening, sorting, classifying, grading, or matching (including the making-up of sets of articles).
Article 3.15. Direct Transport
1. An originating good that is transported through the territory of a non-Party shall be considered to be non-originating unless it can be demonstrated that the good:
(a) undergoes no further production or other operation in the territory of that non-Party, other than unloading, splitting up of loads for transport reasons, reloading, or any other operation necessary to preserve it in good condition;
(b) remains under the customs control while outside the territory of one or both of the Parties; and
(c) does not enter into trade or consumption in the territory of that non-Party.
2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied, upon request, to the customs authority, in accordance with the procedures applicable in the importing Party, by producing:
(a) evidence of the circumstances connected with the transshipment or the storage of the goods in the territory of the non-Party; or
(b) a document issued by the customs authority or other competent authorities of the non-Party that indicates that the conditions set out in paragraph 1 have been fulfilled.
Article 3.16. Principle of Territoriality
1. The conditions for acquiring originating status set out in Articles 3.1 through 3.15 shall be fulfilled without interruption in the territory of one or both of the Parties.
2. Notwithstanding paragraph 1, an originating good exported from a Party to a non-Party shall, when returned, be considered to be non-originating unless it is demonstrated to the satisfaction of the customs authorities in accordance with the laws and regulations of the importing Party concerned that the returning good:
(a) is the same as that exported; and
(b) has not undergone any operation beyond that necessary to preserve it in good condition while being exported.
3. Notwithstanding paragraphs 1 and 2, goods listed in Annex 3-B shall be considered to be originating in accordance with Annex 3-B, even if such goods have undergone operations and processes outside the territories of the Parties.
Article 3.17. Consultation and Modification
1. The Parties shall consult regularly to ensure that this Chapter is administered effectively, uniformly, and consistently with the spirit and objectives of this Agreement, and shall cooperate in the administration of this Chapter.
2. The Parties shall consult regularly pursuant to Article 19.1 (Joint Commission) to discuss possible amendments or modifications to this Chapter and its Annexes, taking into account developments in technology, production processes, or other related matters.
Section B. Origin Procedures
Article 3.18. Certificate of Origin
1. A claim that a good should be treated as originating and accepted as eligible for a preferential tariff shall be supported by a certificate of origin.
2. The certificate of origin shall be completed and signed by the exporter or the producer and shall:
(a) specify that the goods described therein are originating;
(b) be in a printed format or such other medium including electronic format; and
(c) be completed in English in conformity with the specimen and the instructions contained therein as set out in Annex 3-C, which may be amended by agreement between the Parties. Nonetheless, if necessary for the review procedures according to Article 4.10 (Review and Appeal), each Party may require the importer to submit a translation of the certificate of origin in a language required by its law.
3. Where an exporter in its territory is not the producer of the good, the exporter may complete and sign a certificate of origin on the basis of:
(a) its knowledge that the good qualifies as an originating good; or
(b) a certificate of origin, or a written declaration that the good qualifies as an originating good, provided by the producer.
4. Nothing in paragraph 3 shall be construed to require a producer who is not the exporter of the good to provide a certificate of origin, or written declaration that the good qualifies as an originating good.
5. A certificate of origin shall be applicable to:
(a) a single importation of one or more goods into the Party's territory; or
(b) multiple importations of the goods described therein that occur within a specified period, not exceeding 12 months, set out therein.
6. A certificate of origin shall remain valid for one year, or for such longer period specified by the laws and regulations of the importing Party, after the date on which the certificate of origin was signed.
7. Notwithstanding paragraph 6, the customs authority in the importing Party may accept such certificate of origin, provided that the goods have been imported into the territory of a Party before the expiration date of the said certificate of origin.
8. For any originating good of which import declaration is made on or after the date of entry into force of this Agreement, each Party shall accept a certificate of origin that has been completed and signed no more than six months prior to that date.
Article 31.9. Claims for Preferential Tariff Treatment
1. Except as otherwise provided in this Chapter, each Party shall require an importer in its territory that claims preferential tariff treatment for a good imported into its territory from the territory of the other Party to:
(a) request preferential tariff treatment at the time of importation of an originating good, in accordance with the procedures applicable in the importing Party;
(b) make a written declaration, if it deems necessary, that the good qualifies as an originating good;
(c) have the certificate of origin in its possession at the time the claim referred to in subparagraph (a) is made; and
(d) provide, on the request of that Party's customs authority, a copy of the certificate of origin and such other documentation related to the importation of the good in accordance with the laws and regulations of the importing Party.
2. An importer should promptly make a corrected declaration in a manner required by the customs authority of the importing Party and pay any duties owing where the importer has reason to believe that a certificate of origin on which a claim was based contains information that is not correct.
Article 3.20. Post-importation Claims for Preferential Tariff Treatment
Where a good was originating when it was imported into the territory of a Party, but the importer of the good did not make a claim for preferential tariff treatment at the time of importation, that importer of the good may, within a period of at least one year or for such longer period specified by the laws and regulations of the importing Party after the date on which the good was imported, make a claim for preferential tariff treatment and apply for a refund of any excess duties paid as a result of the good not having been accorded preferential tariff treatment, on presentation to the importing Party of:
(a) a certificate of origin and, where appropriate, other evidence that the good qualifies as an originating good; and
(b) such other documentation in relation to the importation of the good as the importing Party may require.
Article 3.21. Waiver of Certificate of Origin
Notwithstanding Article 3.19, a certificate of origin shall not be required where:
(a) the customs value of the importation does not exceed US$1,000 or its equivalent amount in the currency of the importing Party, or such higher amount as may be established by the importing Party; or
(b) the importing Party has waived the requirement for a certificate of origin in accordance with its laws and regulations;
provided that the importation does not form 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 Articles 3.18 and 3.19.
Article 3.22. Obligations Regarding Exportations
1. Each Party shall provide that an exporter or a producer in its territory that has provided a certificate of origin shall provide a copy of the certificate of origin, or such other documentation to its customs authority on request.
2. Each Party shall provide that an exporter or a producer in its territory that has provided a certificate of origin, and that has reason to believe that the certificate of origin contains information that is not correct, shall promptly notify, in writing, all persons to whom the certificate of origin was given by the exporter or producer of any change that could affect the accuracy or validity of the certificate of origin.
3. Each Party shall provide that a false certification by an exporter or a producer in its territory specifying that a good to be exported to the territory of the other Party qualifies as an originating good shall be subject to penalties for a contravention of its customs laws and regulations regarding the making of a false certification or declaration. Furthermore, each Party may apply such measures as the circumstances may warrant where an exporter or a producer in its territory fails to comply with any requirement of this Chapter.
Article 3.23. Record Keeping Requirements
1. Each Party shall provide that the exporter or the producer in its territory that has provided a certificate of origin shall maintain in its territory, for five years after the date on which the certificate of origin was issued or for such longer period as the exporting Party may specify, all records necessary to demonstrate that the good for which the producer or exporter provided the certificate of origin was an originating good, which may consist of, inter alia, the following:
(a) direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;
(b) documents proving the originating status of materials used, issued or made out in a Party where these documents are used, as provided for in its law;
(c) documents proving the working or processing of materials in a Party, issued or made out in a Party where these documents are used, as provided for in its law; and
(d) certificate of origin proving the originating status of materials used, completed in a Party.
2. Each Party shall provide that the importer claiming preferential tariff treatment for a good imported into the Party's territory shall maintain, for five years after the date of importation of the good or for such longer period as the Party may specify, such documentation, including a copy of the certificate of origin, as the Party may require relating to the importation of the good.
3. Each Party shall provide that the importer, exporter, or producer may choose to maintain the records in any medium that allows for prompt retrieval, including but not limited to, digital, electronic, optical, magnetic, or written form.
Article 3.24. Discrepancies and Formal Errors
1. The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents submitted to the customs authority for the purpose of carrying out the formalities for importing goods shall not ipso facto render the certificate of origin null and void if it is duly established that such document does correspond to the goods submitted.
2. Obvious formal errors such as typing errors in a certificate of origin should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.
Article 3.25. Origin Verification
1. For the purpose of determining whether a good imported into one Party from the other Party qualifies as an originating good, the customs authority of the importing Party may conduct a verification process by means of:
(a) written requests for additional information from the importer;
(b) written requests for additional information from the exporter or producer;
(c) requests to the customs authority of the exporting Party for assistance in verifying the origin of the good;
(d) verification visits to the premises of an exporter or a producer in the territory of the other Party, along with the customs authority of the exporting Party to observe the facilities and the production processes of the good and to review the records referring to origin, including accounting files. Officials of the customs authority of the exporting Party should come along as observers to the verification visit when requested by the importing Party; or
(e) any other procedures to which the Parties may agree.
2. For purposes of paragraph 1(a) and 1(b),
(a) the written request for additional information made by the importing Party will indicate that the time period the importer, exporter, or producer has to provide the information and documentation required will be 30 days from the date of the receipt of the written request or for such longer period as the Parties may agree; and
(b) where an exporter or producer fails to provide the information and documentation required within the period referred to in subparagraph (a), the importing Party may deny preferential tariff treatment to the good in question after providing at least a 30-day written notice to the importer, exporter or producer to provide written comments or additional information that will be taken into account prior to completing the verification.
3. For purposes of paragraph 1(c):
(a) the customs authority of the importing Party shall provide the customs authority of the exporting Party with:
(i) the reasons why such assistance for verification is requested;
(ii) the certificate of origin of the good, or a copy thereof; and
(iii) any information and documents as may be necessary for the purpose of such request;
(b) the customs authority of the exporting Party shall provide the customs authority of the importing Party with a written statement in English, including findings and facts, and any supporting documents made available by the exporter or producer. Nonetheless, the exporting Party may issue the above mentioned written statement both in English and in the language required by its law. This statement shall indicate clearly whether the documents are authentic and whether the goods concerned can be considered an originating good and fulfill the other requirements of this Chapter. If the good can be considered an originating good, the statement shall include a detailed explanation of how the good obtained the originating status; and
(c) in the cases where the customs authority of the exporting Party does not provide the written statement within 150 days of the date of request or where the written statement does not contain sufficient information, the importing Party may deny the preferential tariff treatment to the relevant good.
4. For purposes of paragraph 1(d):
(a) prior to conducting a verification visit, the importing Party shall, through its customs authority:
(i) deliver a written notification of its intention to conduct the visit to the exporter or producer whose premises are to be visited and the customs authority of the other Party; and
(ii) obtain the written consent of the exporter or producer whose premises are to be visited;
(b) where an exporter or producer has not given its written consent to a proposed verification visit within 30 days of the receipt of notification pursuant to subparagraph (a), the notifying Party may deny preferential tariff treatment to the relevant good;
(c) upon receipt of notification pursuant to subparagraph (a), such an exporter or producer may, within 15 days of receiving the notification, have one opportunity to request to the Party conducting the verification for a postponement of the proposed verification visit, for a period not exceeding 60 days. This extension shall be notified to the customs authority of the importing and exporting Parties; and
(d) after the conclusion of a verification visit, the Party conducting the verification, shall provide the exporter or producer whose good was verified, with a written determination of whether the good is eligible for preferential tariff treatment, based on the relevant law and findings of fact.
5. For purposes of paragraphs 1(b) and 1(c), all the information requested by the customs authority of the importing Party and responded by the customs authority of the exporting Party shall be communicated in English. Nonetheless, the customs authority of each Party may issue the above mentioned information both in English and in the language required by its law.
Article 3.26. Denial of Preferential Tariff Treatment
Except as otherwise provided in this Chapter, the importing Party may deny a claim for preferential tariff treatment or recover unpaid duties, in accordance with its laws and regulations, where:
(a) the good does not meet the requirements of this Chapter; or
(b) the exporter, producer, or importer of the good fails or has failed to comply with any of the relevant requirements for obtaining preferential tariff treatment.
Article 3.27. Non-party Invoices
The customs authority in the importing Party shall not reject a certificate of origin only for the reason that the invoice is issued either by a company located in a non-Party or by an exporter for the account of the said company.
Article 3.28. Uniform Regulations
1. The Parties may jointly establish and implement, through their respective laws, regulations, or administrative policies, uniform regulations regarding the interpretation, application and administration of this Chapter.
2. The Parties shall simultaneously implement the agreed uniform regulations in accordance with their respective internal procedures.
Article 3.29. Penalties
Each Party shall maintain measures imposing criminal, civil, or administrative penalties for violations of its laws and regulations related to this Chapter.
Article 3.30. Definitions
For purposes of this Chapter:
adjusted value means the FOB value of the good determined pursuant to the Customs Valuation Agreement, inclusive of the cost of transport and insurance to the port or site of final shipment abroad. If there is no FOB value of the good or it is unknown and cannot be ascertained, the value determined pursuant to the Customs Valuation Agreement, mutatis mutandis;
aquaculture means the farming of aquatic organisms, including fish, mollusks, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings, and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, or protection from predators;
carrier means any vehicle for air, sea, or land transport;
CIF means the price actually paid or payable to the exporter for a good when the good is loaded out of the carrier, at the port of importation, including the cost of the good, insurance, and freight necessary to deliver the good to the named port of destination. The valuation shall be made in accordance with the Customs Valuation Agreement;
class of motor vehicles means any one of the following categories of motor vehicles:
(a) motor vehicles classified under HS subheading 8701.20, motor vehicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 87.05 or 87.06;
(b) motor vehicles classified under subheading 8701.10 or subheading 8701.30 through 8701.90;
(c) motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, and motor vehicles classified under subheading 8704.21 or 8704.31; or
(d) motor vehicles classified under subheading 8703.21 through 8703.90;
exporter means a person located in the territory of a Party from where a good is exported by such a person;
FOB means the price actually paid or payable to the exporter for a good when the good is loaded onto the carrier at the named port of exportation, including the cost of the good and all costs necessary to bring the good onto the carrier. The valuation shall be made in accordance with the Customs Valuation Agreement;
fungible goods means goods that are interchangeable for commercial purposes and whose properties are essentially identical;
Generally Accepted Accounting Principles means recognized consensus or substantial authoritative support given in the territory of a Party with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of information, and the preparation of financial statements. Generally Accepted Accounting Principles may encompass broad guidelines for general application, as well as detailed standards, practices, and procedures;
good means any merchandise, product, article, or material;
importer means a person located in the territory of a Party where a good is imported by such a person;
indirect materials means articles used in the production of a good, which are neither physically incorporated into, nor form part of it, including:
(a) fuel and energy;
(b) tools, dies, and molds;
(c) spare parts and materials used in the maintenance of equipment and buildings;
(d) lubricants, greases, compounding materials, and other materials used in production or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment, and supplies;
(f) equipment, devices, and supplies used for testing or inspecting the good;
(g) catalysts and solvents; and
(h) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production;