a) The identification of the competent authority making 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 object and scope of the proposed verification visit, with specific reference to the good or goods subject to verification;
e) The identification and titles of the officials who shall carry out the verification visit; and
f) The legal authority for the verification visit.
7. If within thirty (30) days after the date of receipt of the notification of the proposed verification visit according to paragraph 5, the exporter or producer has not given its written consent for the same, the importing Party may deny preferential tariff treatment to the good or goods that would have been the subject of the verification visit.
8. Each Party shall provide that when the exporter or producer receives notification pursuant to paragraph 5 shall, within fifteen (15) days after the date of receipt of the notification, once, request a postponement of the proposed verification visit for a period not exceeding sixty (60) days from the date on which the notification was received, or for a longer period as may be agreed by the parties. For this purpose, it shall notify the postponement of the visit to the competent authority of the importing Party and the exporting Party.
9. A Party shall not deny preferential tariff treatment based solely on the postponement of a verification visit pursuant to paragraph 8.
10. Each Party shall permit the exporter or producer whose goods are the subject of a verification visit to designate two observers to be present during the visit provided solely to intervene in that capacity. Not observers designated by the exporter or producer that omission shall not result in the postponement of the visit.
11. Each Party shall verify compliance with the requirements of the regional value content of the de minimis calculation or any other measure contained in chapter 4 (rules of origin) through its competent authority in accordance with the generally accepted accounting principles applicable in the territory of the Party from which the good was exported.
12. The procedure to verify the origin contained in this article shall be carried out for a maximum period of one (1) year. However, in duly substantiated cases for each case, it may extend that period in accordance with the uniform regulations.
13. Within the period referred to in paragraph 12 or extension set out in the uniform regulations for conducting the procedure for verification of origin, the competent authority shall provide the exporter or producer whose goods are the subject of the verification of origin, in determining whether a written decision
The goods or otherwise qualifies as originating, including findings of fact and the legal basis for the determination.
Each Party shall provide that if within the period referred to in paragraph 12 or extension set out in the uniform regulations, its competent authority does not issue a resolution of the determination of origin; the goods subject to verification of origin shall be eligible for preferential tariff treatment.
14. Where a verification by a party establishes that the exporter or producer has certified or certified more than once in a false or unfounded, that a good qualifies as originating, the importing party may suspend preferential tariff treatment to identical goods produced or exported by the same until such person proves that complies with the provisions of chapter 4 (rules of origin).
15. Each Party shall provide that where its competent authority determines that a good imported into its territory qualifies as originating in accordance with the tariff classification or the value applied by the Party to one or more materials used in the production of the good, and this differs from the tariff classification or value applied to the materials by the Party from whose territory the good was exported, the resolution of the importing Party shall not take effect until it notifies in writing the importer of both the good and the person that completed and signed the certificate of origin is protected.
16. A Party shall not apply to a decision issued pursuant to paragraph 15 an importation made before the date on which this decision takes effect, provided that:
a) The competent authority from whose territory the good was exported has issued an advance ruling pursuant to article 5.09, or any other ruling on the tariff classification or value of materials in which a person is entitled to rely; and
b) The aforementioned resolutions are prior to the notice of initiation of verification of origin.
Article 5.09. Resolution Advance
1. Each Party shall provide that, through its competent authority shall grant expeditiously advance written rulings prior to the importation of a good into its territory. Advance rulings shall be issued by the competent authority of the importing party at the request of the importer, or the exporter or producer in the territory of the other Party on the basis of the facts and circumstances expressed by the same with respect to:
a) Whether a good qualifies as originating in accordance with chapter 4 (rules of origin);
b) If the non-originating materials used in the production of a good satisfy the applicable change in tariff classification set out in annex 4.03 (specific rules of origin);
c) If the good complies with the regional value content established in Chapter 4 (rules of origin);
d) Whether the method applied by an exporter or producer in the territory of the other party, in accordance with the principles of the Customs Valuation Agreement for calculating the value of the good or of the materials used in the production of a good for which an advance ruling is suitable for determining whether the good complies with the regional value content requirement under rules of origin (chapter 4);
e) Whether a good re-enters that its territory after having been exported from its territory to the territory of the other party to be repaired or altered qualifies for preferential tariff treatment in accordance with Article (0307 re-imported goods after having been repaired or altered); and
f) Other matters as the parties may agree.
2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including:
a) The information reasonably required to process an application;
b) The competent authority may at any time request for additional information from the person requesting the advance ruling during the process of evaluating the application;
c) The obligation of the competent authority to issue the advance ruling after it has obtained all necessary information from the person requesting it; and
d) The obligation of the competent authority of dispatch fully informed and motivated the advance ruling.
3. Each Party shall apply to an advance ruling importations into its territory beginning on the date of the issuance of the resolution, or on a later date indicated in itself, except that the advance ruling was modified or revoked according to paragraph 5.
4. Each Party shall provide to any person requesting an advance ruling the same treatment including the same interpretation and application of the provisions of article (0307 re-imported goods after having been repaired or altered) and chapter 4 (a) Rules of Origin regarding determination of origin that has provided to any other person to whom it issued an advance ruling when facts and circumstances are identical in all substantial aspects.
5. The advance ruling may be modified or revoked by the competent authority in the following cases:
a) Where it is based on an error:
i) In fact;
ii) In the tariff classification of goods or materials;
iii) In the application of a regional value content requirement under rules of origin (chapter 4); or
(IV) In the application of the rules for determining whether a good re-enters that its territory after it has been exported from its territory to the territory of the other party for repair or alteration qualifies for duty-free treatment in accordance with article customs (0307 re-imported goods after having been repaired or altered);
b) If it is not in accordance with an agreed interpretation by the parties regarding chapter 3 (National Treatment and access of goods to market) or the rules of origin (chapter 4);
c) Where a change in the circumstances or facts therefor;
d) In order to comply with a modification to this chapter and chapter 3 (National Treatment and access of goods to the market), chapter 4 (rules of origin), or the uniform regulations; or
e) In order to comply with an administrative or judicial decision or a change in conformity with the legislation of the party that issued the advance ruling.
6. Each Party shall provide that any modification or revocation of an advance ruling takes effect on the date on which it is issued or on a later date that there is established. and shall not be applied to imports of goods made before those dates, unless the person to whom it was issued has not acted in accordance with its terms and conditions.
7. Notwithstanding paragraph 6, the party that issued the advance ruling shall postpone the date of entry into force of the modification or revocation for a period not exceeding ninety (90) days where the person to whom it issued an advance ruling was based on that basis and in good faith to its detriment.
8. Each Party shall provide that when considering the regional value content of a good for which it has issued an advance ruling, its competent authority evaluate whether:
a) The exporter or producer has complied with the terms and conditions of the advance ruling;
b) The exporter or producer operations are consistent with the material facts and circumstances underlying this resolution; and
c) The data supporting computations and used in applying the basis or method for calculating the correct value are substantial in all aspects.
9. Each Party shall provide that where its competent authority determines that has not been complied with any of the requirements established in paragraph 8, the Authority
Competent may modify or revoke the advance ruling as the circumstances warrant.
10. Each Party shall provide that where its competent authority determines that the advance ruling was based on incorrect information shall not penalize the person to whom it issued if it proves that it acted with reasonable care and good faith in stating the facts and circumstances on which the advance ruling.
11. Each Party shall provide that where it issues an advance ruling to a person that has omitted or falsely signified substantial facts or circumstances on which the advance ruling is based or has not acted in accordance with the terms and conditions of the same, the competent authority issuing the advance ruling may apply appropriate measures in accordance with its legislation.
12. The Parties shall provide that the holder of an advance ruling may use it only while maintaining the facts or circumstances that led to its issuance. In this case, the holder of the ruling may submit the information necessary for the appropriate authority that issued it pursuant to paragraph 5.
13. It shall not be the subject of an advance ruling a good that is subject to a procedure to verify the origin or a request of review or appeal in the territory of either party.
Article 5.10. Review and Challenge
1. Each Party shall grant to exporters or producers of the other party the same rights of appeal and review of determinations of origin and advance rulings referred to its importers, provided that:
a) Complete and sign a declaration or certificate of origin that covers a good that has been the subject of a determination of origin in accordance with article 5.08 (13); or
b) Has received an advance ruling pursuant to article 5.09.
2. The rights referred to in paragraph 1 shall include access to at least one level of administrative review of the independent office or official responsible for the determination of origin or an advance ruling subject to review and access to a level of judicial review of the determination or decision taken at the final level of administrative review, in accordance with the legislation of each party.
Article 5.11. Sanctions
1. Each Party shall establish or maintain criminal, civil or administrative penalties for violations of its laws and regulations relating to the provisions of this chapter.
2. Nothing in articles 5.03 (1) (d), 5.03 5.04 (2), (2), (4), 5.08 5.08 (7) or 5.08 (9) shall be construed to prevent a party from applying measures that apply under its law.
Article 5.12. Uniform Regulations
1. The Parties shall establish and implement through their respective laws or regulations by the date of entry into force of this Treaty and at any time thereafter, uniform regulations concerning the interpretation, application and administration of this chapter and chapter 3 (National Treatment and access of goods to the market), chapter 4 (rules of origin) and other matters as agreed by the parties.
2. The parties undertake to complete the negotiation of uniform regulations within sixty (60) days after the signature of this Treaty.
3. Once the uniform regulations, each Party shall implement any of modification or addition to within one hundred and eighty (180) days after the respective agreement between the parties or within any other period as they may agree.
Article 5.13. Cooperation
1. To the extent possible, a Party shall notify the other party of the following measures, determinations or resolutions, including those which are being applied:
a) A determination of origin issued as a result of the verification conducted pursuant to article 5.08, any high levels of review and appeal referred to in Article 5.10;
b) A determination of origin that the Party considers contrary to a ruling issued by the competent authority of the other Party on the tariff classification or value of a good or of the materials used in the production of a good;
c) A measure significantly establishing or modifying an administrative policy that could affect future resolutions of a determination of origin; and
d) An advance ruling or modification pursuant to article 5.09.
2. The Parties shall cooperate:
a) In the enforcement of their respective customs-related laws or regulations for the implementation of this Treaty, as well as any Customs Mutual Assistance Agreement or other customs agreement to which they are party;
b) For purposes of facilitating trade between their territories in customs matters such as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade, the standardization of data elements, the acceptance of an international data syntax and the exchange of information;
c) In the exchange of customs legislation;
d) In the verification of origin of a good for which the competent authority of the importing Party may request to the competent authority of the other party that this
In its territory last performed specific investigations leading to that end, the report referring to the competent authority of the importing Party;
e) In seeking a mechanism for the purpose of detecting and preventing the illicit transhipment of goods from a country Party or non-Party; and
f) In jointly organizing training programs on Customs matters which include training for officials and the users who participate directly in customs procedures related to the origin of the goods.
Article 5.14. Recognition and Acceptance of the Certificate of Origin
1. Without prejudice to paragraph 4, the parties establish the certificate of origin which is to identify that the goods are re-exported from a zone free of one party to the territory of the other party constitute a goods from a third country, provided that they comply with the following:
a) That the goods have remained under customs control of the re-exporting Party;
b) The goods do not undergo any further processing or any other operation, except the marketing, unloading and reloading or any other operation necessary to maintain the goods in good condition; and
c) The foregoing'proving is complete.
2. In paragraph 1, each Party shall provide that a re-exporter of goods located in the free zone complete and sign a certificate of origin, which shall be endorsed by the customs authorities and the authorities of the administration of re-exporting the free zone and will include a single importation of one or more goods into its territory.
3. Each Party through its Customs Authority may request the importer in its territory who imports goods from a free zone, that this certificate of origin at the time of importation and to provide a copy thereof if requested by its customs authority to those goods that qualify as originating in accordance with trade agreements or conventions signed by the importing Party with third parties and claiming the tariff preference granted therein.
4. Provided that it complies with the provisions in paragraphs 5 and 6, each Party shall provide that imports of goods covered by a certificate of origin that qualifies as originating under other trade agreements or conventions signed by the importing Party with third parties not lose the preference or tariff concessions granted by the importing Party, by virtue of such a zone free from.
5. For purposes of paragraph 4, the Parties shall:
a) Jointly establish a mechanism for the administration and control of such goods; and
b) Requiring the submission of a Certificate of Origin issued by those third countries benefiting from preferential tariff treatment described in paragraph 1 above.
6. For the purposes of this article, so that the goods originating from third countries with which the parties have trade agreements in force, have the right to enjoy the tariff preferences under the same, shall be required, in accordance with its laws, that party and that third country agree to the provision of that for re-export or marketing through a zone free of a good for preferential tariff treatment which is claimed, not lose its originating status.
Chapter 6. Safeguard Measures
Article 6.01. Definitions
For purposes of this chapter:
Agreement on safeguards means the Agreement on Safeguards, which is part of the WTO agreement;
Threat of serious harm: "" threat of serious harm as defined in the Agreement on Safeguards;
The investigating authority: "" investigating authority, as set out in annex 6.01;
Critical circumstances: those circumstances in which a delay in the application of the safeguard measure would cause damage that would be difficult to repair;
Serious injury: "" serious harm as defined in the Agreement on Safeguards;
Safeguard measure means any measure of tariff rate to be applied in accordance with the provisions of this chapter. Does not include any safeguard measure arising from such proceedings brought before the entry into force of this Treaty;
The transition period means tariff relief plus two (2) years, except in the case of products which benefit from free trade between the parties in accordance with the bilateral treaties concluded between them, in which case the transition period shall be one year (1);
The domestic industry means producers as a whole of the like or directly competing goods operating within the territory of a party or those whose collective output of the like or directly competing goods constitutes a major proportion of the total domestic production of those goods; and
Link: "causal link" as defined in the Agreement on Safeguards.
Article 6.02. Bilateral Safeguard Measures
1. For the application of the Bilateral safeguard measures, the investigating authority shall be referred to in this chapter and, subsidiarily, in accordance with Article XIX of GATT 1994 and the Agreement on Safeguards and their respective legislation.
2. Subject to paragraphs 4 through 6 and during the transition period, may apply a safeguard measure if as a result of the reduction or elimination of a customs duty pursuant to this Treaty, goods originating from the territory of a Party is being imported into the territory of the other party in such increased quantities in quantity in relation to domestic production and under such conditions that the imports of the good from that party alone constitute a substantial cause of serious injury or threat of serious injury to a domestic industry producing a like or directly competing goods. The party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the serious injury or threat of serious harm:
a) The suspend any further reduction of tariff rate under this Treaty for the goods; or
b) Increasing the tariff rate for the good to a level not to exceed the lesser of:
i) The Customs most-favoured-nation tariff applied at the time the measure is applied; and
ii) The Customs most-favoured-nation tariff applied on the day preceding the entry into force of this Treaty.
3. The following conditions and limitations shall apply to a proceeding that may result in the application of a safeguard measure pursuant to paragraph 2:
a) A Party shall notify the other party without delay and in writing, the initiation of a proceeding that could result in the application of a measure to safeguard an goods originating from the territory of the other party;
b) Any safeguard measure shall take effect within one (1) year from the date of initiation of the proceeding;
c) No safeguard measure may be maintained:
i) For more than two (2) years and may be extended for a period of one additional year (1), in accordance with the procedure laid down in article 6.04 (21); or
ii) After the expiration of the transition period, except with the consent of the Party whose good against the measure is applied;
d) During the transition period, the Parties may implement and extend the application of safeguard measures of the same goods only on two occasions (2);
e) A safeguard measure may be applied in a second time, provided that he has elapsed (1) at least a period equivalent to half of the safeguard that during which the measure was applied for the first time;
f) The period during which has been applied a provisional safeguard measure shall be counted for purposes of determining the duration of the definitive Safeguard Measure set out in subparagraph (c);
g) Provisional measures that do not become final shall be excluded from the limitation provided for in subparagraph (d);
h) During the period of extension of a safeguard measure, the tariff rate shall be progressively reduced to become a party concerned in accordance with the schedule of tariff relief; and
i) Upon the termination of the safeguard measure, the tariff rate shall be the party concerned, in accordance with the schedule of tariff relief.
4. In critical circumstances where any delay would be difficult to repair the injury, Parties may apply a provisional bilateral safeguard measure pursuant to a preliminary determination of the existence of a clear evidence that the increased imports have been on goods originating from the other party as a result of the reduction or elimination of a customs tariff in accordance with this Treaty and at a pace and that such conditions have caused or threatened to cause serious injury. Provisional safeguard measures shall not exceed a period of one hundred and twenty (120 days).
5. Only with the consent of the other party; a party may apply a safeguard measure beyond the expiration of the transition period to deal with cases of serious injury or threat of serious injury to the domestic industry arising from the implementation of this Treaty.
6. The party applying a safeguard measure under this article shall provide to the other party mutually agreed compensation in the form of trade concessions having substantially equivalent effects or equivalent to the value of the additional customs duties expected of the safeguard measure. If the parties are unable to agree on compensation against the party whose product the safeguard measure is applied may impose tariff trade substantially action having effects equivalent to the safeguard measure applied pursuant to this article. The Party shall apply the tariff action only for the minimum period necessary to achieve the substantially equivalent effects.
Article 6.03. Global Safeguard Measures
1. Each Party retains its rights and obligations under article XIX of GATT 1994 and the Agreement on Safeguards, except those regarding compensation or retaliation and exclusion of a safeguard measure as incompatible with the provisions of this article.
2. A Party applying a safeguard measure in accordance with paragraph 1 of this measure, shall exclude imports of goods from the other party, unless:
a) Imports from the other party account for a substantial share of total imports; and
b) Imports from the other party contribute importantly to the serious injury or threat of serious injury caused by imports.
3. In determining whether:
a) Imports from the other party account for a substantial share of total imports, those normally shall not be considered to be substantial if that Party is not among the top five suppliers of the good subject to the procedure based its import share during the three (3) years immediately preceding; and
b) Imports from the other party contribute importantly to the serious injury or threat of serious harm, the competent investigating authority shall consider such factors as the change in the participation of that other Party on the total imports, as well as the volume of imports of that other Party that has suffered and volume changes. Normally shall not be considered as imports from a Party contribute importantly to the serious injury or threat of serious harm if its growth rate during the period in which the sudden increase harmful to the same is appreciably lower than the growth rate of total imports from all sources over the same period.
4. A Party shall without delay and in writing to the other party of the initiation of a proceeding that could result in the application of a safeguard measure in accordance with paragraph 1.
5. No party may apply a measure referred to in paragraph 1 to impose restrictions on a good without prior written notification to the Commission and provide adequate opportunity for prior consultations with the other party as early as practicable before application.
6. Where a Party determines, pursuant to this article, apply to goods originating a safeguard measure of the other party, the arrangements applied to those goods consist solely and exclusively in tariff measures.
7. The party applying a safeguard measure under this article shall provide to the other party mutually agreed compensation liberalizing trade in the form of trade concessions having substantially equivalent effects or equivalent to the value of the additional customs duties expected of the safeguard measure.
8. If the parties are unable to agree on compensation against the party whose product the safeguard measure is applied may impose trade measures substantially having effects equivalent to the safeguard measure applied pursuant to paragraph 1.
Article 6.04. Procedures Concerning the Administration of Safeguard Measures
1. Each Party shall provide consistent and impartial application of its laws, regulations, decisions and rulings governing all procedures for the application of safeguard measures.
2. The procedures for the application of safeguard measures, the determination of the existence of serious injury or threat of serious harm, it shall correspond to the Authority
Researcher of each party. These decisions shall be subject to review by judicial or administrative bodies, to the extent provided for domestic legislation.
Negative resolutions on the existence of serious injury or threat of serious harm may not be modified by the investigating authority. The investigating authority empowered under domestic law to conduct such proceedings, it shall provide all the necessary facilities for the performance of its duties.
3. Each Party shall establish or maintain procedures equitable, timely, transparent and effective for the application of safeguard measures in accordance with the requirements set out in this article.
Initiation of proceedings
4. The investigating authority may initiate on its own initiative or on application by entities empowered under its laws, procedures for the application of safeguard measures. The Entity shall submit the request that it is representative of the domestic industry producing a like or directly competing goods imported goods. To this effect means that the major proportion may not be less than 25 percent (25 per cent).