4. Each Party shall provide that the Certificate of Origin shall be signed and dated by the competent authority of the exporting Party, provided that the goods may be considered originating in accordance with the provisions of this Chapter and Annex 3-A (Specific Rules of Origin). The Certificate of Origin shall also bear an identifying serial number.
5. The competent authority of each Party shall validate the Certificate of Origin based on the information provided by the exporter or producer of the good. The exporter or producer who fills out or completes and signs a certificate of origin, shall do so in terms of a sworn statement, undertaking to assume any administrative, civil or criminal liability, when false or incorrect information has been included in the certificate of origin.
6. The Parties shall exchange the list of public or private entities authorized to issue certificates of origin and the record of the autographic or electronic signatures of the officials accredited for such purpose. Any modification to this list shall be notified immediately in writing to the other Party and shall enter into force 30 days after the date on which the notification of the modification is received.
7. Each Party shall provide that the Certificate of Origin shall be completed and signed by the requesting exporter or producer for each export of one or more goods.
8. Each Party shall provide that the Certificate of Origin shall be accepted by the customs authority of the importing Party for a period of one year from the date of signature of the certifying authority.
9. Each Party shall provide that preferential tariff treatment shall not be denied to goods covered by a Certificate of Origin invoiced by an enterprise located in the territory of a non- Party, provided that such goods are shipped directly from the territory of the other Party, without prejudice to the provisions of Article 3.11.
Article 3.15. OBLIGATIONS REGARDING IMPORTS
1. Each Party shall require that an importer claiming preferential tariff treatment in its territory for a good imported into its territory from the territory of the other Party shall be responsible for:
(a) declare in writing in the import document foreseen in its legislation, based on a valid Certificate of Origin, that the merchandise qualifies as originating;
(b) have the Certificate of Origin in their possession at the time of making the declaration;
(c) provide, when requested by its customs authority, a copy of the Certificate of Origin; and
(d) submit a corrected declaration and pay the corresponding duty when the importer has reason to believe that the Certificate of Origin on which the customs declaration is based has incorrect information. The importer may not be penalized when he voluntarily files the corrected goods declaration before the customs authorities notify the revision, in accordance with the legislation of each Party.
2. Each Party shall provide that, where an importer in its territory fails to comply with any of the requirements set out in this Chapter, it shall deny preferential tariff treatment for the good imported from the territory of the other Party.
3. Each Party shall provide that, where the importer has not requested tariff treatment for a good imported into its territory that it has qualified as originating at the time of importation, it shall not request a drawback or refund of excess duties paid.
4. Compliance with the provisions of this Article does not relieve the importer of the obligation to pay the corresponding customs duties under the relevant laws of the importing Party when the customs authority denies preferential tariff treatment to imported goods pursuant to Article 3.19.
Article 3.16. EXPORT-RELATED OBLIGATIONS
1. Each Party shall provide that its exporter or producer who has completed or filled out and signed a Certificate of Origin shall deliver a copy of such Certificate to its customs authority upon request.
2. Each Party shall provide that its exporter or producer who has completed or filled out and signed a Certificate of Origin or has provided information to its competent authority, and has reason to believe that such Certificate contains incorrect information, shall promptly notify in writing:
(a) who has delivered that Certificate;
(b) the competent authority; and
(c) the customs authority in accordance with its laws,
of any change that may affect the accuracy or validity of such Certificate, in which case the exporter or producer shall not be penalized for submitting incorrect certification or information.
3. Each Party shall provide that false certification by an exporter or a producer in its territory that a good to be exported to the territory of the other Party is originating shall be subject to penalties equivalent to those applied to an importer in its territory who makes false statements or representations in connection with an importation.
4. The customs and competent authorities of the exporting Party shall advise the customs authority of the importing Party in writing of the notification referred to in paragraph 2.
Article 3.17. INVOICING BY a NON-PARTY OPERATOR
1. Goods that meet the applicable requirements of this Chapter shall retain their originating status, even when invoiced by traders in a non-Party.
2. When the merchandise subject to commercial exchange is invoiced by an operator of a non-Party country, the producer or exporter of the country of origin shall indicate in the respective certificate of origin, in the box relating to "observations", that the merchandise subject to its declaration will be invoiced from that non-Party country and shall identify the name, denomination or company name and domicile of the operator that will ultimately be the one invoicing the operation at destination.
Article 3.18. RECORDS
1. Each Party shall provide that:
(a) an exporter or producer in its territory, who completes or completes and signs a Certificate of Origin or who provides information to the competent authority maintains, for a period of at least five years from the date of signature of the Certificate, all records and documents relating to the origin of the good, including the:
(i) purchase, costs, value and payment of the exported merchandise;
(ii) the purchase, costs, value and payment of all materials, including indirect materials, used to produce the exported merchandise; and
(iii) production of the merchandise in the form in which it was exported;
(b) an importer claiming preferential tariff treatment shall maintain the Certificate of Origin and all other documentation requested by the importing Party for a period of at least five years from the date of importation of the good; and
(c) the competent authority of the exporting Party that issued the Certificate of Origin shall maintain all documentation relating to the issuance of the Certificate for a period of at least five years from the date of issuance of the Certificate.
2. A Party may deny preferential tariff treatment to a good subject to verification of origin, if the exporter, producer or importer of the good required to keep records or documents in accordance with paragraph 1:
(a) fails to comply with the requirement to maintain records or documents to determine the origin of the good in accordance with the provisions of this Chapter; or
(b) denies access to records or documents.
Article 3.19. PROCEDURE FOR VERIFICATION OF ORIGIN
1. The authority of the importing Party may request information on the origin of a good from the competent authority of the exporting Party.
2. The competent authority of the importing Party may require the importer to submit information relating to the importation of the good for which preferential tariff treatment was claimed.
3. For purposes of determining whether the imported good qualifies as originating, the authority of the importing Party may verify the origin of the good through the competent authority of the exporting Party by:
(a) requests for information or written questionnaires to the exporter or producer of the good in the territory of the other Party, in which it shall specifically indicate the good subject to verification;
(b) verification visits to the exporter or producer in the territory of the other Party to inspect the facilities used in the production of the good or materials to review records and documents demonstrating compliance with the Rules of Origin in accordance with Article 3.18; or
(c) any other procedure agreed upon by the Parties.
4. For the purposes of this Article, notifications of questionnaires, official letters, determinations, notices and other written communications sent to the exporter or producer to verify the origin, shall be considered valid provided that they are made through the following means:
(a) registered mail with return receipt requested or other means confirming receipt of the document by the exporter or producer; or
(b) any other means agreed upon by the Parties.
5. An exporter or producer receiving a questionnaire or request for information pursuant to paragraph 3(a) shall duly complete and return the questionnaire or respond to the request for information within 30 days from the date of receipt. Such communication shall include a notice of intent to deny preferential tariff treatment in the event that the exporter or producer does not comply with the requirement to submit the duly completed or completed questionnaire or the requested information within such period.
6. During the period referred to in paragraph 5, the exporter or producer may make a written request for extension to the authority of the importing Party, not exceeding 30 days. Such request shall not have the effect of denying preferential tariff treatment.
7. The authority of the importing Party may request, through the competent authority of the exporting Party, additional information by means of a subsequent questionnaire or request to the exporter or producer, even if it has received the completed or filled questionnaire with the requested information referred to in paragraph 3(a). In this case the exporter or producer shall have 30 days to respond to such request.
8. If the exporter or producer fails to properly complete a questionnaire, return it or provide the requested information within the period set forth in paragraphs 6 and 7, the authority of the importing Party may deny preferential tariff treatment to the goods subject to verification by sending to the importer, exporter and the competent authority of the exporting Party, a determination of origin including the facts and legal basis for that decision.
9. Prior to conducting a verification visit and in accordance with paragraph 3(b), the authority of the importing Party shall notify in writing its intention to conduct the verification visit to the competent authority of the exporting Party. The notification shall be sent to the competent authority of the exporting Party by mail or any other means that provides a record of the receipt of the notification. The authority of the importing Party shall require the written consent of the exporter or producer to be visited in order to carry out the verification visit.
10. The notification referred to in paragraph 9 shall include:
(a) the name, title and address of the authorized officer of the customs authority issuing the notification;
(b) the name of the exporter or producer to be visited;
(c) the date and place of the proposed verification visit;
(d) the purpose and scope of the proposed verification visit, including specific reference to the goods that are subject to the verification;
(e) the names (personal data) and positions of the officials conducting the visit; and
(f) the legal basis for the verification visit.
11. Any changes to the information referred to in paragraph 10 shall be notified to the exporter or producer, the customs authority and the competent authority of the exporting Party prior to the verification visit.
12. Where an exporter or producer of a good does not consent in writing to the proposed verification visit within 30 days from the date of receipt of the notification referred to in paragraph 9, the importing Party may deny preferential tariff treatment to such good by notifying the importer and the competent authority of the exporting Party in writing of its determination, including the facts and legal basis for its determination.
13. Each Party may require, upon receipt of any notification under paragraph 9 by its competent authorities, within 15 days of such notification, that the proposed verification visit be postponed for a period not exceeding 30 days from the date of receipt of the notification, or for such longer period as the Parties may agree.
14. The Parties shall not deny preferential tariff treatment to a good solely because a verification visit under paragraph 13 is postponed.
15. Each Party shall allow an exporter or producer whose good is subject to a verification visit to appoint two observers to be present during the visit, provided that the observers do not participate in any manner other than as observers. Failure to appoint observers shall not be grounds for postponement of the visit.
16. Each Party shall require an exporter or producer to provide the records and documents referred to in Article 3.18.1(a) to the customs authority of the importing Party. If the records and documents are not in the possession of the exporter or producer, the exporter or producer may request that the producer or supplier of the materials provide them to the verifying authority.
17. For the verification of compliance with any requirement set forth in Section A, the authority of the importing Party shall adopt, where applicable, the Generally Accepted Accounting Principles applied in the territory of the exporting Party.
18. The authority of the importing Party shall prepare the minutes of the visit, which shall include the facts confirmed by it. The exporter or producer and the observers may sign the minutes as appropriate.
19. Within 90 days of the conclusion of the verification, the customs authority of the importing Party shall issue and send a written origin determination to the exporter or producer of the goods subject to verification, determining whether the good qualifies as originating, including the findings of fact and the legal basis for the origin determination.
20. Where an authority of the importing Party denies preferential tariff treatment to a good or to several goods subject to verification, such authority shall issue a written, reasoned and substantiated determination of origin, which shall be notified to the exporter or producer in accordance with paragraph 4.
21. Where, through a verification of origin, the authority of the importing Party determines that an exporter or producer has provided more than once false or unfounded information to the effect that a good qualifies as originating, the customs authority of the importing Party may suspend preferential tariff treatment to identical goods exported by that person. The customs authority of the importing Party shall grant preferential tariff treatment to the goods upon compliance with the provisions of this Chapter.
22. For the issuance of a determination of origin of a good subject to a verification process, the authority of the importing Party shall consider the advance rulings issued on the matter by such authority prior to the date of issuance of the determination of origin.
Article 3.20. EXCEPTIONS
1. A Party shall not require a Certificate of Origin when:
(a) it is a commercial importation of a good whose customs value does not exceed one thousand dollars of the United States of America (US$ 1000), or its equivalent in national currency, or such greater amount as that Party may establish, but may require that the commercial invoice contain or be accompanied by a declaration by the importer or exporter that the good qualifies as originating; or
(b) itis an importation for non-commercial purposes of a good whose customs value does not exceed one thousand dollars of the United States of America (US$ 1000), or its equivalent in national currency, or such greater amount as that Party may establish.
The exceptions provided for in this Article shall not apply when the goods are part of two or more imports made or intended to be made to avoid compliance with the certification requirements of this Chapter.
Article 3.21. DEFINITIONS
For the purposes of this Chapter:
aquaculture means the culture of aquatic organisms, including fish, mollusks, crustaceans, other aquatic invertebrates and aquatic plants, from seed storage such as eggs, immature fish, fry, fingerlings, minnows and larvae, by intervention in the processes of sustenance or growth for increased production, such as regular stocking, feeding, protection from predators, etc.;
to allocate reasonably means to allocate in the appropriate manner in accordance with Generally Accepted Accounting Principles;
competent authority is:
(a) for the Republic of Colombia:
the Ministry of Commerce, Industry and Tourism or the National Tax and Customs Directorate; and
(b) for the Republic of Panama: the Ministry of Commerce and Industries or the National Customs Authority; or their successors.
authority of the importing Party is:
(a) for the Republic of Colombia: the Ministry of Commerce, Industry and Tourism or the National Tax and Customs Directorate; and
(b) for the Republic of Panama: the National Customs Authority; or their successors.
Valid Certificate of Origin means a Certificate of Origin written in the format referred to in Article 3.14, completed, signed and dated by the producer or exporter of a good in the territory of a Party and validated by the competent authority of the exporting Party, in accordance with the provisions of this Chapter;
CIF means the value of the imported merchandise including insurance and freight costs to the port or place of introduction in the country of importation;
net cost means all costs less sales promotion, marketing and after-sales service costs, royalties, packing and shipping costs, as well as non-allowable interest costs that are included in the total cost;
net cost of merchandise means the net cost that can be reasonably assigned to the merchandise using one of the following methods:
(a) by calculating the total cost incurred in respect of all goods produced by that producer, subtracting any costs of sales promotion, marketing, after-sales services, royalties, packing and shipping costs and ineligible interest costs included in the total cost of all such goods, and then reasonably allocating the net cost incurred in respect of those goods to the merchandise;
(b) calculating the total cost incurred in respect of all goods produced by that producer by reasonably allocating the total cost to the merchandise and then subtracting any costs of sales promotion, marketing, after-sales services, royalties, packing and shipping costs and unallowable interest costs included in the portion of the total cost allocated to the merchandise; or
(c) reasonably allocating each cost that forms part of the total cost incurred in respect of the merchandise, so that the sum of these costs does not include any costs of sales promotion, marketing, after-sales services, royalties, packing and shipping costs and unallowable interest costs,
provided that the allocation of such costs is consistent with the reasonable cost allocation provisions of Generally Accepted Accounting Principles;
ineligible interest costs means interest costs incurred by a producer in excess of 700 basis points over yields on debt obligations of comparable maturities issued by the central level of government of the Party in which the producer is located;
Total cost means all product costs, period costs and other costs for a good incurred in the territory of one or more of the Parties. Product costs are the costs that are associated with the production of the good and include the value of materials, direct labor costs, and direct administrative costs. Period costs are those costs, other than product costs, that are incurred in the period in which they are incurred, such as selling expenses, general expenses and administrative expenses. Other costs are all costs recorded on the producer's books that are not product costs or period costs, such as interest. Total cost does not include profits that are received by the producer regardless of whether they have been retained or paid by the producer to others, such as dividends or taxes paid on profits, including taxes on return on capital;
origin determination means a written document issued by the authority of the importing Party as a result of an origin verification procedure that establishes whether a good qualifies as originating under this Chapter;
exporter means the person who makes an export;
FOB means the value of the goods free on board, regardless of the means of transport, at the port or place of final shipment abroad;
commercial importation means the importation of a good into the territory of a Party to be used for commercial, industrial or similar purposes;
importer means the person who makes an import;
material means a good that is used in the production or transformation of another good and includes components, inputs, raw materials, parts and pieces;
packaging materials and shipping containers means materials and containers used to protect merchandise during transportation and does not include containers and materials in which merchandise is packaged for retail sale;
self-produced material means material that is produced by the producer of a commodity and used in the production of that commodity;
indirect material means a good used in the production, verification or inspection of another good, but not physically incorporated therein; or a good that is used in the maintenance of buildings or in the operation of equipment related to the production of a good, including:
(a) fuel, energy, catalysts and solvents;
(b) equipment, apparatus and attachments used for the verification or inspection of goods;
(c) gloves, goggles, footwear, clothing, safety equipment and attachments;
(d) tools, dies and molds;
(e) spare parts and materials used in the maintenance of equipment and buildings;
(f) lubricants, greases, compounds and other products used in the production, operation of equipment or maintenance of buildings; and
(g) any other material or product which is not incorporated in the goods, but which can be adequately demonstrated to be part of such production;
fungible goods or materials means goods or materials interchangeable for commercial purposes whose properties are essentially identical and which cannot be distinguished from one another by simple visual examination;
identical goods means goods that are alike in all respects relevant to the particular rule of origin that qualifies the goods as originating;
non-originating good or non-originating material means a good or material that does not meet the requirements of this Chapter to be considered originating;
goods wholly obtained or produced entirely in the territory of one or both Parties means:
(a) minerals extracted in the territory of one or both Parties;
(b) plants and plant products harvested or gathered in the territory of one or more Parties;
(c) live animals, born and raised in the territory of one or both Parties;
(d) products obtained from hunting, capture or fishing, in the territory of one or more Parties;
(e) products obtained from aquaculture, including mariculture, where fish, crustaceans, mollusks and other aquatic invertebrates born or raised in the territory of one or both Parties;
(f) fish, crustaceans and other marine species obtained from the sea outside its territory, whether by vessels registered, registered or leased by an enterprise established in the territory of a Party and flying the flag of that Party;
(g) goods produced on board factory ships from the products identified in subparagraph (e), provided that the factory ships are registered, registered or leased by an enterprise established in the territory of a Party and flying the flag of that Party;
(h) goods obtained from the seabed or subsoil outside its territory, by a Party or a person of a Party, provided that the Party has rights to exploit that seabed or subsoil;
(i) goods produced, in the territory of one or more Parties, exclusively from the goods referred to in subparagraphs (a) through (h) or their derivatives, at any stage of production;
Generally Accepted Accounting Principles means recognized consensus or substantial authoritative support agreed 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 of general application, as well as those detailed standards, practices and procedures;
production means methods of obtaining goods including but not limited to growing, breeding, raising, raising, mining, harvesting, fishing, hunting, trapping, catching, aquaculture, collecting, extracting, manufacturing, processing, assembling or disassembling a good;
producer means a person who carries out a production process;
simple generally means activities that do not require special skills or special machines, apparatus or equipment specially made or installed to carry out the activity. However, simple mixing does not include chemical reaction. Chemical reaction is a process (including a biochemical process) that produces a molecule with a new structure by breaking intramolecular chains and forming new intramolecular chains, or by changing the spatial arrangement of atoms in a molecule;
Preferential tariff treatment means the application of the appropriate tariff rate to an originating good under Annex 2-B (Tariff Elimination Program).
Chapter 4. CUSTOMS ADMINISTRATION AND TRADE FACILITATION
Article 4. PUBLICATION
1. Each Party shall publish, including on the Internet, its general customs legislation, regulations and administrative procedures.
2. Each Party shall designate or maintain one or more inquiry points to respond to inquiries from interested persons on customs matters and shall make available on the Internet information concerning the procedures for making such inquiries.
3. To the extent practicable, each Party shall publish in advance any regulations of general application governing customs matters it proposes to adopt and give interested persons an opportunity to comment prior to their adoption.
Article 4.2. CLEARANCE OF GOODS
1. Each Party shall adopt or maintain simplified customs procedures for the efficient clearance of goods in order to facilitate trade between the Parties.
2. Each Party shall adopt or maintain procedures that:
(a) stipulate that customs clearance of goods be carried out within a period no longer than that required to ensure compliance with their customs legislation and, as far as possible, within 48 hours of the arrival of the goods;
(b) allow the goods to be cleared at the point of arrival, without temporary transfer to warehouses or other facilities; and
(c) allow importers to remove goods from customs before all applicable duties, taxes and fees have been paid.
Prior to the release of the goods, a Party may require the importer to provide a guarantee sufficient to cover the full payment of the customs duties, taxes and fees applicable in connection with the importation of the good without prejudice to the final determination by its customs authority.
3. Each Party shall endeavor to ensure that all competent administrative entities involved in the control and physical inspection of the imported or exported good, where possible, act simultaneously at a single place and time.
Article 4.3. USE OF AUTOMATED SYSTEM
Each Party shall endeavor to use information technology that expedites the procedures for the clearance of goods. In choosing the information technology to be used for this purpose, each Party shall:
(a) support customs operations, in the context of paperless trade transactions, as far as possible, taking into account developments in these matters within the World Customs Organization (hereinafter referred to as "WCO");
(b) work on the development of compatible electronic systems between the customs authorities of the Parties, in order to facilitate the exchange of international trade data between them;
(c) work to develop a set of common data elements and processes in accordance with the Customs Data Model and related WCO recommendations and guidelines; and