(b) issue the ruling as expeditiously as possible and in no case later than 150 days after it has obtained all necessary information from the person requesting an advance ruling; and
(c) provide to the person requesting an advance ruling the reasons for that ruling, including the factual and legal basis.
8. Each Party, through its Designated Representative, shall provide that an advance ruling takes effect on the date that it is issued or on a later date specified in the ruling, and remains in effect unless the advance ruling is modified or revoked.
9. Each Party, through its Designated Representative, shall provide to a person requesting an advance ruling the same treatment provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.
10. Each Party, through its Designated Representative, shall provide that an advance ruling shall apply throughout the territory represented by the Party for the person to whom the ruling is issued.
11. Nothing in this Article requires a Party, through its Designated Representative, to issue an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of a post clearance audit or an administrative or judicial review or appeal.
12. Each Party, through its Designated Representative, shall, in accordance with the laws, regulations, and procedures of the territory represented by the Party, make its advance rulings available on a free, publicly accessible website with redactions to protect confidential information.
Article 2.6. Electronic Documentation and Systems for Traders
1. With a view to creating a paperless border environment for trade in goods, each Party, through its Designated Representative, recognizes the importance of eliminating paper forms and documents required for import, export, or transit of goods. To this end, the Parties, through their Designated Representatives, are encouraged to eliminate requirements for paper forms and documents, as appropriate, and transition toward using forms and documents in electronic formats.
2. Each Party, through its Designated Representative, shall make any form issued or controlled by the customs administration of the territory represented by the Party for import, export, or transit of goods through the territory represented by the Party available to the public in an electronic format.
3. Each Party, through its Designated Representative, shall endeavor to make any form issued or controlled by an authority of the territory represented by the Party other than the customs administration, for import, export, or transit of goods through the territory represented by the Party, available to the public in an electronic format.
4. Each Party, through its Designated Representative, shall make available on a free, publicly accessible website the instructions for how to submit in electronic format the forms referred to in paragraph 2, and supporting documentation for those forms.
5. Nothing in paragraphs 2, 3, and 4 shall be construed to prevent a Party or its Designated Representative from complying with any applicable international legal requirement to the contrary.
6. If a person submits in electronic format a form issued or controlled by the customs administration or other authority of the territory represented by a Party, or, as appropriate, supporting documentation, related to the import, export, or transit of goods through the territory represented by the Party, the Party, through its Designated Representative, shall ensure that electronic document is treated as the legal equivalent of the paper version of the document.
7. Nothing in paragraph 6 shall be construed to require the treatment of an electronic document as the legal equivalent of a paper document if doing so:
(a) would be inconsistent with a domestic legal, regulatory, or procedural requirement or an international legal requirement that is applicable to the authorities of the territory represented by a Party; or
(b) would reduce the effectiveness of customs or other trade procedures in the context of an audit, verification, or enforcement action related to import, export, or transit of goods through the territory represented by a Party.
8. Each Party, through its Designated Representative, shall no later than 12 months after the date of entry into force of this Agreement publish, in accordance with Article 2.2, a list of paper forms that, consistent with paragraphs 5 and 7, are required by the authorities of the territory represented by the Party to be submitted in paper form. Each Party, through its Designated Representative, shall update the list, as appropriate.
9. The Parties, through their Designated Representatives as appropriate, shall endeavor to cooperate in international forums, where appropriate, to promote the use of electronic forms, the acceptance of electronic supporting documentation, and the exchange of electronic certifications tequired for import, export, or transit of goods.
10. Each Party, through its Designated Representative, shall ensure that:
(a) any signature required by the customs administration of the territory represented by the Party may be submitted in electronic format; and
(b) electronic signatures submitted to the customs administration of the territory represented by the Party may be validated electronically without the need for a mutual recognition arrangement.
11. The Parties, through their Designated Representatives as appropriate, shall consult on whether to issue, accept, and exchange certifications consistent with relevant international standards, for example electronic phytosanitary certificates (e-Phyto) consistent with International Standard for Phytosanitary Measures 12 adopted under the International Plant Protection Convention.
Article 2.7. E-Invoicing
1. For the purposes of this Article, value added tax invoice means an invoice submitted by a private party to the tax authorities of the territory represented by a Party for purposes of making value added tax payments or filing value added tax returns.
2. Each Party, through its Designated Representative, shall ensure that an invoice issued by a private party to another private party for the sale of goods or services is not denied legal effect solely on the basis that the invoice is in electronic format.
3. Each Party, through its Designated Representative, shall ensure that a bill of lading issued by a private party to another private party for the carriage of goods is not denied legal effect solely on the basis that the bill of lading is in electronic format.
4. Each Party, through its Designated Representative, shall ensure that a value added tax invoice for the sale of goods or services is not denied legal effect solely on the basis that the value added tax invoice is in electronic format.
5. For greater certainty, a Party, through its Designated Representative, may require that a value added tax invoice submitted to the authorities of the territory represented by the Party be:
(a) in a specified format;
(b) transmitted to those authorities through a specific network or connection; or
(c) encrypted or validated to a specific standard.
6. If the authorities of the territory represented by a Party maintain a requirement described in paragraph 5, the Party, through its Designated Representative, shall, with a view to lowering costs and opening competition, ensure that those authorities:
(a) make that requirement available online;
(b) use or accept open standards for compliance with that requirement; and
(c) take into account the needs of SMEs subject to the requirement.
7. If the authorities of the territory represented by a Party require that a value added tax invoice be transmitted to those authorities through a specific network or connection, the Party, through its Designated Representative, shall ensure that those authorities do not:
(a) charge a fee for using the specific network or connection; or
(b) testrict the use of a specific network or connection to private parties in the territory represented by the Party.
Article 2.8. E-Invoicing Networks
1. For the purposes of this Article:
access point means a service that facilitates the exchange of an invoice or a related document between a buyer and a seller;
data component means common data language and syntax between access points;
delivery component means protocols that govern how an access point delivers data in a secure manner to another access point;
discovery component means protocols that govern how an access point identifies another access point and what data the other access point can receive; and
electronic invoicing network means an open network that creates, exchanges, and processes an invoice or a related document using a structured digital format and without human intervention.
2. The Parties recognize that the use of electronic invoicing networks can increase the effectiveness, efficiency, and predictability of international trade and lower costs. To these ends, each Party, through its Designated Representative, shall endeavor to promote the adoption of electronic invoicing networks that support cross-border interoperability by:
(a) allowing a seller and a buyer, each using a different access point service provider, to exchange an invoice or a related document; and
(b) basing the networks upon discovery components, delivery components, and data components that utilize open standards, such as the OASIS business document exchange and universal business language.
3. Each Party, through its Designated Representative, shall ensure that if the authorities of the territory represented by the Party allow the use of an electronic invoicing network for making value added tax payments to those authorities, the network complies with the principles set out in paragraph 2.
Article 2.9. Exchange of Advance Electronic Data for Postal Shipments of Goods
1. Each Party, through its Designated Representative, shall ensure that any postal operator offering universal service (Postal Operator) of the territory represented by the Party fulfills Electronic Advance Data (EAD) requirements pertaining to Electronic Data Interchange (EDI) of pre-dispatch and item-level customs declaration information consistent with Universal Postal Union (UPU) Standards and Convention Regulations, when such Postal Operator dispatches postal items containing goods that originate in its service territory and are destined for the service territory of a Postal Operator of the territory represented by the other Party.
2. Each Party, through its Designated Representative, shall consult the other Party, through its Designated Representative, prior to imposing EAD requirements pertaining to EDI of pre-dispatch and item-level customs declaration information that are not consistent with UPU Standards and Convention Regulations.
3. Each Party, through its Designated Representative, shall endeavor to impose information submission and processing requirements on postal shipments containing goods to enable effective use of automated targeting methods to intercept potentially higher risk shipments, optimize use of border search resource personnel, and deter illicit trafficking through the mail.
4. Nothing in this Article shall be construed to prevent a Party, either on its own or through its Designated Representative, from complying with domestic or international law that limits liability for Postal Operators of the territory represented by the Party.
Article 2.10. Electronic Payments
Each Party, through its Designated Representative, shall adopt or maintain procedures allowing for the electronic payment of customs duties, taxes, fees, or charges imposed on or in connection with importation or exportation and collected by the customs administration or other authority of the territory represented by the Party.
Article 2.11. Authorized Economic Operator (AEO)
1. Each Party, through its Designated Representative, shall maintain a trade facilitation partnership program for operators who meet specified security criteria, known as AEO programs, consistent with the Framework of Standards to Secure and Facilitate Global Trade of the World Customs Organization.
2. The Parties, through their Designated Representatives, shall endeavor to cooperate by:
(a) exchanging experiences on the operation of and improvements to their respective AEO programs, seeking to adopt, if appropriate, best practices, in particular with respect to bolstering supply chain resiliency;
(b) exchanging information with each other on the operators authorized by their respective AEO programs, in accordance with the law and established processes of the authorities of the territories represented by the Parties; and
(c) collaborating in the identification and implementation of trade facilitation benefits for operators authorized by the authorities of the territory represented by the other Party.
Article 2.12. Single Window
1. Each Party, through its Designated Representative, shall establish or maintain a single window system that enables the electronic submission through a single entry point of the forms, documentation, and data the authorities of the territory represented by the Party require of importers for importation prior to the arrival of goods to the territory represented by the Party.
2. Each Party, through its Designated Representative, shall provide for the processing of the electronic submissions described in paragraph 1 prior to the arrival of goods to the territory represented by the Party to:
(a) perform an assessment of risk; and
(b) expedite the release of low-risk goods.
3. Each Party, through its Designated Representative, shall, whenever practicable, utilize available data provided by information technology systems or sensors embedded on vehicles, shipping containers, or packing materials or otherwise with the shipment to:
(a) perform an assessment of risk; and
(b) expedite the release of low-risk goods.
4. Each Party, through its Designated Representative, shall, in a timely manner, inform the submitter of import information through its single window system of the status of the release of the imported goods.
5. If the authorities of the territory represented by a Party do not promptly release an import, the Party, through its Designated Representative, shall inform the importer and shall include in the notification, to the extent permitted by the law of the territory represented by the Party, the reasons why the goods are not released and which authority of that territory, if not the customs administration, has withheld release of the goods.
6. In building and maintaining the single window system described in paragraph 1, each Party, through its Designated Representative, shall endeavor to streamline the system on an ongoing basis, including by adding functionality to eventually cover export and transit transactions, facilitate trade, improve transparency, and reduce release times and costs associated with import, export, and transit through the territory represented by the Party.
7. Each Party, through its Designated Representative, shall provide that a submitter may, without penalty:
(a) correct a non-fraudulent error (2) in a submission to the single window system described in paragraph 1 within a reasonable amount of time;
(b) update a submission to the single window system described in paragraph 1 to reflect changed circumstances at any time before the importation is complete; and
(c) whenever practicable and consistent with the laws, regulations, and procedures of the territory represented by the Party, correct multiple import declarations, or other forms, documents, or data previously submitted to the single window system described in paragraph 1, in a single submission.
Article 2.13. Release of Goods
1. Each Party, through its Designated Representative, shall adopt or maintain customs procedures related to the importation of goods that:
(a) provide for the immediate release of goods upon receipt of all required forms and supporting documentation and the fulfillment of all applicable requirements and procedures; and
(b) allow such goods to be released by the customs administration of the territory represented by the Party at the point of arrival without requiring temporary transfer to warehouses, premises, or other facilities unless required by other authorities of that territory with jurisdiction over such goods. If additional inspections are required by such other authorities, those authorities will release the goods when the goods comply with the applicable requirements of those authorities.
2. Each Party, through its Designated Representative, shall adopt or maintain procedures that provide for the release of goods prior to a final determination and payment of customs duties, taxes, fees, and charges imposed on or in connection with importation of the goods, when these customs duties, taxes, fees, or charges are not determined by the time of arrival, provided that the goods are otherwise eligible for release and any security required by the authorities of the territory into which the good is to be imported has been provided.
3. If the authorities of the territory represented by a Party allow for the release of goods conditioned on a security, the Party, through its Designated Representative, shall adopt or maintain procedures that:
(a) ensure that the amount of the security is no greater than that required to ensure that obligations arising from the importation of the goods will be fulfilled;
(b) ensure that the security obligation shall be discharged as soon as possible after the customs administration of the territory represented by the Party is satisfied that the obligations arising from the importation of the goods have been fulfilled or, for instruments covering multiple entries, until it is no longer required; and
(c) except in limited circumstances, allow an importer to provide security using a non-cash financial instrument.
4. Nothing in this Article requires a Party, either on its own or through its Designated Representative, to require the release of a good where applicable requirements for release have not been met, or to prevent the authorities of the territory represented by the Party from liquidating a security in accordance with their laws, regulations, and procedures.
5. Neither Party, either on its own or through its Designated Representative, shall use reference or minimum prices, including for risk management, for the purpose of assessing the customs value of goods, assessing taxes, or setting a guarantee.
6. Neither Party, either on its own or through its Designated Representative, shall require the use of preshipment inspection within the scope of Article 10.5.1 of the WTO Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement.(3)
7. Each Party, through its Designated Representative, shall allow, to the extent practicable, goods intended for import to be moved within the territory represented by the Party under customs control from the point of arrival to another customs port in that territory from where the goods are intended to be released, provided the applicable regulatory requirements of the territory represented by the Party are met.
8. Each Party, through its Designated Representative, shall regularly update, as appropriate, risk profiles in the risk management systems of the authorities of the territory represented by the Party, taking into account emerging trends and trade dynamics and the results of previous customs control activities.
9. Each Party, through its Designated Representative, shall adopt or maintain procedures to ensure uniformity of customs treatment across the territory represented by the Party for goods imported into or transiting the territory.
10. Each Party, through its Designated Representative, shall adopt or maintain training programs for the customs officials of the authorities of the territory represented by the Party with a view to encouraging efficiency, consistency, and predictability in the application of customs procedures throughout that territory, including training on:
(a) laws, regulations, procedures, and guidance documents that apply throughout that territory;
(b) mechanisms for seeking consistent guidance on applying a particular customs procedure to an individual customs transaction;
(c) technological developments in customs procedures, such as non-intrusive inspection techniques, artificial intelligence, and track-and-trace;
(d) information technology systems being used by the customs administration of that territory;
(e) business or trade processes that may complicate risk assessment by the customs administration of that territory; and
(f) decisions and agreements at the international level that affect the application of the customs procedures of that territory.
Article 2.14. Express Shipments
1. Each Party, through its Designated Representative, shall adopt or maintain expedited customs procedures for express shipments while maintaining appropriate customs control and selection. These procedures shall include the procedures specified in Article 2.13. Each customs procedure for express shipments adopted or maintained pursuant to this Article shall:
(a) apply without regard to the weight of the shipment,(4) whether the shipment is personal or commercial, or whether the recipient is a natural person or legal entity;
(b) not limit the total number, nor limit the number over a certain period of time, of express shipments that a single recipient may receive;
(c) to the extent practicable, use non-intrusive inspection technology to facilitate any necessary physical examination or inspections of the goods; and
(d) require only the submission of the minimum information necessary to process, telease, and clear the shipment, and, where possible, allow it to be submitted in a single submission through the single window system described in Article 2.12.
2. For express shipments valued at less than US$2500, each Party, through its Designated Representative, shall adopt or maintain procedures that apply fewer customs formalities than are required for formal entry procedures, provided that the shipments do not form part of a series of importations that may be reasonably considered to have been undertaken or arranged for the purpose of avoiding compliance by an importer with the laws, regulations, or procedures of the territory represented by the Party into which the shipments are to enter.
3. The procedures provided for in paragraph 2 shall:
(a) allow for individual shipments, identified by a bill of lading, to be consolidated into one customs entry by either the plane-load or truck-load;
(b) allow the release and clearance of shipments without requiring an importer to obtain a customs bond; and
(c) allow either:
(i) a qualified consignee to request the periodic billing and remittance of customs duties, taxes, fees, and charges assessed for all its imports over a designated time period; or
(ii) the levy of a flat percentage rate assessment on all goods, the payment of which will fulfill the requirement to pay any customs duties, tax, fee, or charge owing for the shipment. (5)
4. For express shipments of restricted goods, nothing in this Article shall be interpreted to prohibit a Party, through its Designated Representative, from:
(a) applying additional formalities for entry;
(b) assessing customs duties, taxes, fees, or charges; or
(c) requiring the submission of additional import documentation and data.
5. Nothing in this Article shall be interpreted to prohibit a Party, through its Designated Representative, from requiring that express shipments be accompanied by an airway bill or bill of lading.
Article 2.15. Returned Goods
1. Each Party, through its Designated Representative, shall establish or maintain procedures for incoming returns of non-perishable goods (6) that allow for the return and re- importation of goods free of customs duty when returned within three years after having been exported without having been advanced in value or improved in condition by requiring the minimum information necessary to identify the goods as the same goods previously exported, such as an invoice or a bill of lading.
2. Each Party, through its Designated Representative, shall establish or maintain procedures for outgoing rejected goods that, upon the export from the territory represented by the Party of previously imported goods that have been rejected by the importer or purchaser, provide a mechanism for the refund of customs duties and value added taxes. A Party, through its Designated Representative, may require proof of export from the territory represented by the Party before providing the refund. Neither Party, either on its own or through its Designated Representative, shall require the use of a customs broker or that the claimant be established in the territory represented by the Party in order to claim a refund.
Article 2.16. Shipping Containers and other Substantial Holders
1. For purposes of this Article, a shipping container or other substantial holder includes any container, tank, cube, cask, barrel, box, winding core, pallet, crate, or cylinder, whether collapsible or not, that is constructed ofa sturdy material capable of repeated use, such as plastic, wood, or steel, and that is used in the shipment of goods as an instrument of international traffic.
2. Each Party, through its Designated Representative, shall adopt or maintain procedures allowing a shipping container or other substantial holder, whether arriving full or empty, of any size, volume, or dimension, and accessories or equipment accompanying a shipping container or other substantial holder that has an internal volume of one cubic meter or more:
(a) to be released from customs control without a customs declaration or payment of customs duties, taxes, fees, or charges; and
(b) to remain within the territory represented by the Party continuously for at least 364 days.
Article 2.17. Agricultural and other Goods Vulnerable to Deterioration (AOQGVD)
1. To avoid deterioration, for imports of AOGVD, each Party, through its Designated Representative, shall provide that the customs administration of the territory represented by the Party shall:
(a) allow for electronic submission of entry process documents, including required licenses, permits, market authorizations, and registrations;
(b) automate the tariff rate quota administration procedures;
(c) make available up-to-date, free online information on tariff rate quota availability, including eligibility requirements and quantity of quota allocated;
(d) provide for reasonable hours of inspection service at ports; and
(e) give appropriate priority to AOGVD when scheduling inspections that may be required in order to determine whether to release product into commerce.
2. Each Party, through its Designated Representative, shall identify opportunities to provide inspection services away from the border crossings of the territory represented by the Party to facilitate the release of AOGVD. These opportunities may include preauthorization of AOGVD and the provision of outside-the-port services, which may include allowing an importer to arrange proper storage of AOGVD in climate-appropriate storage facilities pending release.
3. If the authorities of the territory represented by a Party limit the number of climate- appropriate storage facilities at or near a port, the Party, through its Designated Representative, shall ensure those authorities take into account, as appropriate, the need for sufficient storage for AOGVD in the management of inspection activities and decisions on the number of facilities.
4. Taking into account the particular costs associated with trade in AOGVD, each Party, through its Designated Representative, shall ensure that the authorities of the territory represented by the Party review entry process requirements, including the use of stamps, signatures, attestations, and paper requirements, with a view to reducing and automating requirements, accepting more entry process documents electronically, and reducing their time and burden.
Article 2.18. Humanitarian Cargo and Disaster Supplies
Each Party, through its Designated Representative, recognizes the need to have response and recovery plans in place to build resiliency and prepare for humanitarian crises and disasters. Each Party, through its Designated Representative, shall endeavor to allow the rapid release of shipments that the Party, through its Designated Representative, designates as humanitarian or disaster-relief shipments and, where practicable, shall exempt such shipments from the payment of customs duties, taxes, fees and charges.
Article 2.19. Consular Transactions
1. For purposes of this Article, consular transaction means a requirement that goods of the territory represented by a Party intended for export to the territory represented by the other Party must first be submitted to the supervision of the consul of the territory into which the goods are to be imported in the territory from which the goods are to be exported for the purpose of obtaining a signature for authentication, a consular invoice, or a consular visa for a commercial invoice, certificate of origin, manifest, shipper's export declaration, or any other form or documentation in connection with the importation of the good.
2. Neither Party, either on its own or through its Designated Representative, shall require a consular transaction or consular tax, fee, or charge in connection with the importation of any good.
Article 2.20. Review and Appeal of Customs Determinations
1. With a view to providing effective, impartial, and easily accessible procedures for review and appeal of administrative determinations on customs matters, each Party, through its Designated Representative, shall ensure that any person to whom the customs administration of the territory represented by the Party issues a determination has access to:
(a) an administrative appeal or a review of the determination by an administrative authority higher than or independent of the employee or office that issued the determination; and
(b) a judicial review or appeal of the determination or decision made at the final level of an administrative review.