(a) contain a unique certificate number;
(b) state the basis on which the goods are deemed to qualify as originating for the purposes of this Chapter;
(c) contain security features, such as signatures and stamps, and the stamps shall conform to those notified by the exporting Party to the importing Party;
(d) be completed in English; and
(e) be in printed format, which is understood as a Certificate of Origin either manually or electronically signed and stamped by the authorized body. It is required that only one original hard copy of the Certificate of Origin be printed.
3. A Certificate of Origin shall be issued before or at the time of shipment or within seven working days after shipment of the goods in question. It shall be valid for one year from the date of issuance in the exporting Party.
4. If a Certificate of Origin has not been issued before or at the time of shipment or within seven working days after shipment due to force majeure, involuntary errors, omissions or other valid causes, a Certificate of Origin may be issued retrospectively but no longer than one year from the date of shipment, bearing the words "ISSUED RETROACTIVELY".
5. For cases of theft, loss or accidental destruction of a Certificate of Origin, the exporter or producer may make a written request to the authorized bodies of the exporting Party for issuing a certified copy, provided that the original copy previously issued has been verified not to be used. The certified copy shall bear the words "CERTIFIED TRUE COPY of the original Certificate of Origin number ___ dated ___".
Article 3.16. Authorized Body
1. Each Party shall inform the customs authority of the other Party of the name of each authorized body, as well as relevant contact details, and shall provide details of any specimen of stamps for relevant forms and documents used by each authorized body, prior to the issuance of any certificates by that body.
2. Any change in the information provided above shall be promptly notified to the customs authority of the other Party and enter into force seven working days after the date of notification or on a later date indicated in such notification.
Article 3.17. Claims for Preferential Tariff Treatment
1. Unless otherwise provided in this Chapter, the importer claiming preferential tariff treatment shall:
(a) make a written statement in the customs declaration, indicating that the good qualifies as an originating good;
(b) possess a valid Certificate of Origin, at the time the import customs declaration referred to in subparagraph (a) is made; and
(c) submit the original Certificate of Origin and other documentary evidences related to the importation of the goods in accordance with their respective domestic laws and regulations (7).
2. The importer shall promptly make a corrected declaration and pay any duties owed, where the importer has reason to believe that a Certificate of Origin on which a declaration was based contains information that is not correct.
Article 3.18. Post-importation Preferential Tariff Treatment
1. Each Party shall provide that, where an originating good was imported, importer may, no later than one year after the date of importation, apply for refund of any excess duties, deposit, or guarantee paid as a result of the good not having been accorded preferential tariff treatment, on presentation to the customs authority of the importing Party of:
(a) a valid Certificate of Origin demonstrating that the good was originating at the time of importation; and
(b) such other documentation relating to the importation of the good as the importing Party may require.
2. Without prejudice to paragraph 1, each Party may require, in accordance with its respective laws and regulations, that the importer shall formally declare to the customs authority upon importation as a precondition for claiming preferential tariff treatment, failing which no preferential tariff treatment is to be granted.
Article 3.19. Exemption of Obligation of Submitting Certificate of Origin
1. For the purpose of granting preferential tariff treatment under this Chapter, a Party shall waive the requirements for the presentation of a Certificate of Origin for consignment of originating products of a customs value not exceeding 700 US dollars or its equivalent amount in the Party's currency; or
2. Waivers provided for in paragraph 1 shall not be applicable when it is established by the customs authorities of the importing Party that the importation forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the submission of a Certificate of Origin.
Article 3.20. Record Keeping Requirements
1. Each Party shall require its producers or exporters to retain origin documents for three years from the date the Certificate of Origin was issued for the producers or exporters. These documents include records of, but not limited to the following:
(a) the purchase of, cost of, value of, and payment for, the good;
(b) the purchase of, cost of, value of, and payment for all materials, including neutral elements, used in the production of the good;
(c) the production of the good in the form in which it was exported; and
(d) such other documentation as is required by the laws and regulations of each Party.
2. Each Party shall require its importer to retain all records related to the importation in accordance with its laws and regulations.
3. Each Party shall require that its authorized bodies retain copies of Certificates of Origin and any other documentary evidence sufficient to substantiate the origin of the goods for three years.
4. An exporter, producer, importer or authorized bodies may choose to maintain the records specified in paragraphs 1 through 3 in any medium that allows for prompt retrieval, including, but not limited to, digital, electronic, optical, magnetic, or written form in accordance with its domestic legislation.
Article 3.21. Minor Discrepancies and Errors
Without prejudice to Article 3.23, where the minor discrepancies and errors are ascertained by the customs authority of the importing Party such as illegibility, defect on its face, and discrepancy between the Certificate of Origin and the written declaration to the customs, the importer shall be granted a period of not less than five working days, but not exceeding 30 working days, from the date of request by the customs authority to provide a copy of the corrected Certificate of Origin.
Article 3.22. Non-party Invoice
The importing Party shall not reject a Certificate of Origin only for the reason that the invoice was issued in a non-Party, provided that the requirements under this Chapter are complied with.
Article 3.23. Verification of Origin
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 in sequence by means of:
(a) requests for information relating to the origin of imported good from the importer;
(b) requests to the customs authority of the exporting Party to verify the origin of the goods;
(c) requests to the customs authority of the exporting Party for a verification visit to exporter or producer in the exporting Party; or
(d) such other procedures as agreed upon by the customs authorities of the Parties.
2. For the purposes of subparagraph 1(b),
(a) the customs authority of the importing Party shall provide to the customs authority of the exporting Party with:
(i) the reasons why such verification is requested;
(ii) the Certificate of Origin of the goods, or a copy thereof; and
(iii) any other information or documents as may be necessary for such request;
(b) the customs authority of the exporting Party shall provide the customs authority of the importing Party with verification results, to the extent possible including facts and findings, and relevant supporting documents made available by the exporter or producer, within six months from the date of the receipt of the request; and
(c) the customs authority of the importing Party shall notify the results of the determination as to whether the good in question is originating or not to the customs authority of the exporting Party within three months from the date of the receipt of the results of the verification from the customs authority of the exporting Party.
3. For the purposes of subparagraph 1(c), if the customs authority of the importing Party is not satisfied with the verification results provided by the customs authority of the exporting Party, the customs authority of the importing Party may, at the consent of the customs authority of the exporting Party, conduct verification visits to the premises of the exporter or producer in the exporting Party, under the escort of the customs authority of the exporting Party.
(a) Before conducting a verification visit, the customs authority of the importing Party shall, at least 30 days prior to the date of verification visit, deliver a written request to the customs authority of the exporting Party of its intention to conduct such verification visit. The customs authority of the exporting Party should decide whether to accept such request and reply to the customs authority of the importing Party within 30 days from the date of receipt of the request.
(b) When the customs authority of the exporting Party agrees to the request of verification visit but needs to postpone the proposed verification visit, the customs authority of the importing Party shall be notified together with the approval of the verification visit. Such postponement shall not exceed 60 days from the proposed date of the verification visit.
(c) In case the customs authority of the exporting Party agrees to such request, the customs authority of the importing Party can conduct verification visit to exporter or producer, in the company of customs officials of the exporting Party.
(d) Prior to initiating the verification visit, matters concerning the verification shall be mutually discussed between customs authorities of both Parties. In the course of verification visit, any request from the customs authority of the importing Party shall be made through the customs authority of the exporting Party.
(e) The customs authority of the importing Party shall notify the customs authority of the exporting Party of the determination on whether or not the good is originating and the result of verification visit, to the extent possible including legal basis and findings of fact in a written form.
(f) The exporter or producer may submit comments or documents regarding eligibility of the good for preferential tariff treatment to the customs authority of the exporting Party in a written form.
(g) The customs authority of the importing Party shall notify the final determination on whether or not the good is originating to the customs authority of the exporting Party and the importer in a written form within 30 days from the receipt of the comments or information provided from the customs authority of the exporting Party under subparagraph 3(f).
(h) The verification visit process, from the actual visit to the final determination under subparagraph 3(g), shall be carried out within a maximum period of six months.
(i) Details for the verification visit may be decided jointly by the customs authorities of both Parties in advance.
4. The customs authority of the importing Party may suspend provision of preferential tariff treatment while awaiting the results of the verification. However, it may release the good to the importer subject to any administrative measures deemed necessary, provided that they are not held to be subject to import prohibition or restriction and there is no suspicion of fraud.
5. The customs authority of the importing Party may deny preferential tariff treatment, in case where:
(a) the importer fails to respond to the customs authority of the importing Party within one month from the date of receipt of the request under subparagraph 1(a);
(b) the customs authority of the exporting Party fails to provide verification results to the customs authority of the importing Party within six months under subparagraph 2(b);
(c) the verification results provided to the customs authority of the importing Party or the results of verification visit do not contain information necessary to confirm the authenticity of the origin status of the good in question;
(d) the customs authority of the exporting Party denies the request of verification visit from the customs authority of the importing Party; or (e) the customs authority of the exporting Party fails to respond to the request of verification visit from the customs authority of the importing Party within 30 days under subparagraph 3(a).
6. Communications under this Article shall be in the English language.
Article 3.24. Confidentiality
1. A Party shall maintain the confidentiality of the information provided by the other Party, pursuant to this Chapter, and protect it from disclosure that could prejudice the competitive position of the person providing the information. Any violation of the confidentiality shall be treated in accordance with the legislation of each Party.
2. The information referred to in paragraph 1 shall not be disclosed without the specific permission of the person or government providing such information.
Article 3.25. Denial of Preferential Tariff Treatment
A Party may deny preferential tariff treatment to a good when:
(a) the good does not meet the requirements of this Chapter;
(b) the importer, exporter or producer fails to comply with the relevant requirements of this Chapter;
(c) the Certificate of Origin does not meet the requirements of this Chapter; or
(d) in a case according to paragraph 5 of Article 3.23.
Article 3.26. Transitional Provision for Goods In Transit or Storage
The provision of this Chapter may be applied to goods which on the date of entry into force of this Agreement, are either in transit, in the Parties, or in temporary storage in customs warehouses, subject to the submission to the customs authorities of the importing Party, within three months of the date of entry into force of this Agreement, of a Certificate of origin made out retrospectively together with the documents showing that the goods have been transported directly in accordance with Article 3.14.
Article 3.27. Electronic Origin Data Exchange System
According to "Arrangement between the General Administration of Customs of the People's Republic of China and the Korea Customs Service of the Republic of Korea on Strategic Cooperation", both Parties endeavor to develop an Electronic Origin Data Exchange System before the implementation of this Agreement to ensure the effective and efficient implementation of this Chapter in a manner jointly determined by the Parties.
Article 3.28. Sub-committee on Rules of Origin
1. The Parties hereby establish a Sub-Committee on Rules of Origin (hereinafter referred to as the "Sub-Committee") comprising the customs authorities of the Parties, which shall report to the Committee on Customs as defined in Article 19.4 (Committees and Other Bodies).
2. The customs authorities of each Party may request consultations on matters arising from the implementation of this Chapter. The customs authority requested shall confirm the receipt of the request within 10 days and reply to the request within 60 days. For this purpose, contact points should be designated by each customs authority.
3. The Sub-Committee shall be convened at least once a year or at other times as the Parties may agree.
4. The functions of the Sub-Committee shall include:
(a) keeping Annex 3-A updated on the basis of the transposition of the Harmonized System;
(b) ensuring the effective, uniform and consistent administration of this Chapter, and enhancing the cooperation in this regard;
(c) addressing any technical issues related to the implementation of this Chapter and Annex 3-A, such as change in tariff classification, regional value content calculation, etc.; and
(d) meeting to review Articles 3.4 and 3.5 and documentary evidence of origin four years after the date of entry into force of this Agreement.
Chapter 4. Customs Procedures and Trade Facilitation
Article 4.1. Definitions
For the purposes of this Chapter:
customs law means the statutory and regulatory provisions relating to the importation, exportation, movement or storage of goods, the administration and enforcement of which are specifically charged to the customs authorities, and any regulations made by customs authorities, under their statutory powers;
customs procedures means the treatment applied by each customs authorities to goods and means of transport that are subject to customs law; and
means of transport means various types of vessels, vehicles, aircraft and pack-animals which enter or leave the territory of a Party carrying persons, goods or articles.
Article 4.2. Scope and Objectives
1. This Chapter shall apply, in accordance with the Parties' respective international obligations and domestic customs law, to customs procedures applied to goods traded between the Parties and to the movement of means of transport between the Parties.
2. The objectives of this Chapter are to:
(a) simplify and harmonize customs procedures of the Parties;
(b) facilitate trade between the Parties; and
(c) promote cooperation between the customs authorities, within the scope of this Chapter.
Article 4.3. Facilitation
1. Each Party shall ensure that its customs procedures and practices are predictable, consistent, and transparent to facilitate trade.
2. Customs procedures of each Party shall, where possible and to the extent permitted by its respective customs law, conform with the trade-related instruments of the World Customs Organization (WCO) to which that Party is a contracting party, including those of the International Convention on the Simplification and Harmonization of Customs Procedures, as amended, known as the Revised Kyoto Convention.
3. The customs authorities shall facilitate the clearance, including release of goods in administering their procedures.
4. Each Party shall endeavor to provide a focal point, electronic or otherwise, through which its traders may submit all required regulatory information in order to obtain clearance, including release of goods.
Article 4.4. Consistency
Each Party shall ensure, to the extent possible, consistent implementation of its customs laws and regulations nationwide, and endeavour to deter inconsistent matters that may arise in the implementation process of the laws and regulations among its regional customs offices by establishing and taking proper measures.
Article 4.5. Transparency
1. Each Party shall ensure that its customs and other trade-related laws, regulations, general administrative procedures and other requirements, including fees and charges, are readily available to all interested parties, via an officially designated medium including official website. Each customs authority shall publish all customs laws and any administrative procedures it applies or enforces, via an officially designated medium including official website.
2. Each customs authority shall designate or maintain one or more enquiry points to deal with inquiries from interested persons from either Party on customs matters arising from the implementation of this Agreement, and make available on the official website information concerning the procedures for making such inquiries.
3. To the extent possible, each customs authority shall publish in advance any new or amended regulations of general application governing customs matters that it proposes to adopt and shall provide interested persons with the opportunity to comment before adopting them.
4. Each customs authority shall provide the other customs authority with timely notice of any significant modification of customs laws or procedures governing the movement of goods and means of transport that is likely to substantially affect the operation of this Chapter.
Article 4.6. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of GATT 1994 and the Customs Valuation Agreement.
Article 4.7. Tariff Classification
The Parties shall apply the International Convention on the Harmonized Commodity Description and Coding System to goods traded between them.
Article 4.8. Customs Cooperation
1. The Parties affirm their commitment to facilitate the legitimate movement of goods and shall exchange expertise on measures to improve customs techniques and procedures, and on computerized systems.
2. To the extent permitted by their domestic laws, the customs authorities shall assist each other, in relation to:
(a) the implementation and operation of this Chapter; and
(b) such other issues as the Parties mutually determine.
Article 4.9. Review and Appeal
1. Each Party shall, in accordance with its domestic laws and regulations, provide that the importer, exporter or any other person affected by its determinations, have access to:
(a) a level of administrative review of determinations by its customs authorities independent of the official or office responsible for the determinations under review; and
(b) judicial review of the administrative determinations subject to its laws and regulations.
2. A producer or exporter may provide, on the request of the reviewing authority, information directly to the Party conducting the administrative review, and may request such Party to treat that information as confidential in accordance with the rules applicable in that Party. This information shall be provided in accordance with the rules determined by the Parties.
Article 4.10. Advance Rulings
1. The customs authority of each Party shall issue written advance rulings prior to the importation of a good into its territory on the written request of an importer, an exporter, or any other applicant in the territory of that Party (8), on the basis of the facts and circumstances provided by the requester, including a detailed description of the information required to process a request for an advance ruling. The advance ruling may be issued on the following matters:
(a) tariff classification;
(b) origin of a good in accordance with this Agreement; and
(c) such other matters as the Parties may agree.
2. The customs authority shall issue an advance ruling within 90 days after a request, provided that the requester has submitted all information required under the domestic laws, regulations and rules. The advance ruling shall be in force from its date of issuance, provided that the facts or circumstances on which the ruling is based remain unchanged.
3. The advance rulings that are into force may be annulled, amended or revoked:
(a) where the facts or circumstances prove that the information on which the advance ruling is based is false or inaccurate. In these cases, the customs authority may apply appropriate measures to the requester, including civil, criminal and administrative actions, penalties or other sanctions in accordance with its domestic laws;
(b) where the customs authorities deem appropriate to apply different criteria due to the obvious error made by customs authorities on the same facts and circumstances of the original advance rulings. In this case, the amendment or revocation shall be applied from the date of the change; or
(c) when the administrative decisions are affected due to changes in the laws, regulations and rules that served as basis. In these cases, the advance rulings shall automatically cease to be in force from the date of publication of those changes. In the cases mentioned in subparagraph (c), the customs authority shall make available to interested persons the information reviewed, with sufficient time prior to the date on which the amendments enter into force, so they can take them into account, with the exception of the cases where it is impossible to publish in advance.
4. Each Party shall publish its advance rulings subject to any confidentiality requirements in its laws, regulations and rules. 5. A Party may decline to issue an advance ruling if the facts or circumstances forming the basis of the advance ruling are the subject of administrative or judicial review.
Article 4.11. Penalties
Each Party shall adopt or maintain measures that allow for the imposition of administrative penalties and, where appropriate, criminal sanctions for violations of its customs laws and regulations, including those governing tariff classification, customs valuation, country of origin, and claims for preferential tariff treatment under this Agreement.
Article 4.12. Use of Automated Systems
The customs authorities shall apply information technology to support customs operations, where it is cost-effective and efficient, particularly in the paperless trading context taking into account developments in this area within the WCO.
Article 4.13. Risk Management
1. The customs authorities shall focus measures of control on high-risk goods and facilitate the clearance of low-risk goods in administering customs procedures.
2. The Parties shall design and apply risk management in a manner as to avoid arbitrary or unjustifiable discrimination or disguised restrictions on international trade.
Article 4.14. Release of Goods
1. Each Party shall adopt and apply simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties. For greater certainty, this paragraph shall not require a Party to release goods where its requirements for release have not been met.