1. Accessories, spare parts or tools delivered with the good, shall be treated as originating if the good is originating and shall be disregarded in determining whether all non-originating materials used in the production of the good meet the applicable change in tariff classification, provided that:
(a) the accessories, spare parts, or tools are classified with the good and have not been separately invoiced, regardless of whether each is separately identified on the invoice itself; and
(b) the quantities and value of such accessories, spare parts or tools are customary for the merchandise.
If a good is subject to a regional value content requirement, the value of the accessories, spare parts or tools described in paragraph 1 shall be considered as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
Article 3.10. SETS OF GOODS
If goods are classified as a set as a result of the application of General Interpretative Rule 3 of the Harmonized System, the set shall be considered as originating only if each good in the set is originating, and both the set and the goods comply with all other applicable requirements of this Chapter.
Notwithstanding paragraph 1, a set of goods is originating if the value of all the non-originating goods in the set does not exceed 15% of the FOB value of the set.
Article 3.11. CONTAINERS AND PACKING MATERIALS FOR RETAIL SALE
1. Where retail containers and packing materials are classified with the good, they shall not be taken into account in determining the origin of the good.
2. Where the goods are subject to a regional value content requirement, the value of packaging materials and retail packaging shall be taken into account in determining the origin of the goods, as the case may be.
Article 3.12. CONTAINERS AND PACKING MATERIALS FOR SHIPMENT
Containers and packing materials for shipment shall not be taken into account for the determination of the origin of the goods.
Article 3.13. INDIRECT MATERIALS
1. For the purpose of determining whether a good is originating, indirect materials shall be considered as originating regardless of the place of their production.
2. Indirect materials means articles used in the production of a good that are not physically incorporated into or form part of the 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, composites and other materials used in the production, operation of equipment or maintenance of buildings; and
(g) any other goods that are not incorporated in the good, but whose use in the production of the good can be adequately demonstrated to be part of that production.
Article 3.14. TRANSIT AND TRANSSHIPMENT
Each Party shall provide that a good shall not be considered to be originating if the good:
(a) undergoes further processing or is subject to any other operation, outside the territory of the Parties, except unloading, reloading, or any other operation necessary to maintain the good in good condition or to transport it to the territory of a Party; or
(b) does not remain under the control of the customs authorities in the territory of a non-Party.
Section B. ORIGIN PROCEDURES
Article 3.15. CERTIFICATION OF ORIGIN
1. The importer may apply for preferential tariff treatment based on a written or electronic certificate of origin, set out in Annex 3-B, issued by the competent authority of the exporting Party at the request of the exporter.
2. The certificate of origin referred to in paragraph 1 shall be valid for one year from the date of its issuance.
3. The certificate of origin shall cover one or more goods in a single shipment.
4. The exporter of the good applying for a certificate of origin shall submit all necessary documents proving the originating status of the good in question, as required by the competent authority. The exporter must also undertake to comply with the other requirements applicable to this Chapter.
5. In case of theft, loss or destruction of a certificate of origin, the exporter may request in writing to the competent authority that issued it, a duplicate of the original certificate on the basis of the export invoice or any other evidence that would have served as a basis for the issuance of the original certificate of origin, in the exporter's possession.
6. The duplicate issued in accordance with the previous paragraph shall have in the observations field the phrase "DUPLICATE of the Certificate of Origin number [...] dated [...]", so that the period of validity is counted from the indicated day.
Article 3.16. NOTIFICATIONS
1. Upon entry into force of this Agreement, each Party shall provide to the other Party a record of the names of the officials accredited to issue certificates of origin, as well as specimens of the signatures and impressions of the stamps used by the competent authority for the issuance of certificates of origin.
2. Any change in the register referred to in paragraph 1 shall be notified in writing to the other Party. The change shall take effect 15 days after receipt of the notification or within a later period specified in such notification.
Article 3.17. OBLIGATIONS RELATING TO IMPORTS
1. Except as otherwise provided in this Chapter, each Party shall require that an importer claiming preferential tariff treatment in its territory:
(a) declare on the customs import document, on the basis of a certificate of origin, that the good qualifies as originating in the other Party;
(b) has in its possession the certificate of origin at the time the declaration referred to in paragraph (a) is made;
(c) has in its possession documents certifying that the requirements set out in Article 3.14 have been met; and
(d) provides the certificate of origin, as well as all documentation referred to in paragraph (c), to the customs authority upon request.
2. Each Party shall provide that where the importer fails to comply with any of the requirements set out in paragraph 1, preferential tariff treatment shall be denied to the good imported from the territory of the other Party for which the preference was claimed.
3. Where the certificate of origin contains errors of form which do not give rise to doubts as to the accuracy of the information contained therein, such as typographical errors, they may be accepted by the customs authority of the importing Party.
4. When a certificate of origin is not accepted by the customs authority of the importing Party at the time of importation because of omissions in its completion or errors other than errors of form that do not affect compliance with origin or tariff preference, such customs authority shall not deny preferential tariff treatment. In this case, the customs authority of the importing Party shall request the importer, on a one-time, non-extendable basis, to present a new certificate of origin within a period of 15 days, counted from the day following the date of receipt of the notification of such omission or error, and may authorize the release, after adopting the measures it deems necessary to guarantee the fiscal interest, in accordance with its legislation.
5. At the end of the period established in paragraph 4, if a new certificate of origin correctly issued has not been presented, the importing Party shall deny preferential tariff treatment, and if measures have been taken to ensure the fiscal interest, it shall proceed to enforce them.
6. If a new certificate of origin correctly issued is presented and measures have been adopted to guarantee the fiscal interest, the measures shall be lifted within a period of no more than 90 days, counted from the day following the presentation of the request for the release of the measures by the importer to the customs authority of the importing Party, which may be extended for up to 30 additional days in exceptional cases.
Article 3.18. OBLIGATIONS RELATED TO EXPORTS
1. The exporter who has requested a certificate of origin shall provide or arrange for the producer to provide, at the request of the customs authority of the importing Party, all information used by such producer in the manufacture of the goods in the framework of a verification process pursuant to Article 3.24.
2. Each Party shall provide that:
(a) an exporter to whom a certificate of origin has been issued shall promptly notify in writing the customs authority of the importing Party, with a copy to the competent authority of the exporting Party and the importer, of any change that would affect the accuracy or validity of that certificate; and
(b) if an exporter has submitted a certificate of origin that contains or is based on false information and exported qualifying originating goods into the territory of the other Party, it shall be subject to penalties equivalent, with appropriate modifications, to those that would apply to an importer in its territory for contravening its customs laws and regulations by making false declarations and statements in connection with an importation.
3. No Party shall impose penalties on an exporter for providing a certificate of origin that contains or is based on incorrect information if it voluntarily communicates this in writing to the customs authority of the importing Party, with a copy to the competent authority of the exporting Party and to the importer, before the customs authority of the importing Party has initiated the exercise of its verification and control powers, in accordance with the legislation of each Party.
Article 3.19. REIMBURSEMENT OF CUSTOMS DUTIES
Where an originating good is imported into the territory of a Party without the importer of the good having applied for preferential tariff treatment at the time of importation, the importer may apply, no later than one year after the date of acceptance of the customs import declaration, for reimbursement of any excess duty paid as a result of not having applied for preferential tariff treatment by submitting to the customs authority:
(a) the certificate of origin, which shall comply with the provisions set forth in Article 3.15; and
(b) other documentation related to the importation of the good, in accordance with the legislation of the importing Party.
Article 3.20. SUPPORTING DOCUMENTS
The documents used to demonstrate that the goods covered by a certificate of origin are considered originating goods and meet the requirements of this Chapter may include, inter alia, the following:
(a) direct evidence of the processes carried out by the exporter or producer to obtain the goods referred to, contained for example in its accounts or internal bookkeeping;
(b) documents proving the originating status of the materials used;
(c) documents proving the working or processing of the materials used; or
(d) certificates of origin proving the originating status of the materials used.
Article 3.21. PRESERVATION OF THE CERTIFICATE OF ORIGIN AND SUPPORTING DOCUMENTS
1. An exporter requesting the issuance of a certificate of origin shall maintain for a period of at least five years from the date of its issuance the documents referred to in Article 3.20.
2. The competent authority of the exporting Party issuing the certificate of origin shall maintain a copy of the certificate of origin for a period of at least five years from the date of its issuance.
3. An importer requesting preferential treatment for a good shall maintain, for a period of at least five years from the date of importation of the good, documentation related to the importation including the certificate of origin.
Article 3.22. EXCEPTIONS TO THE OBLIGATION TO PRESENT A CERTIFICATE OF ORIGIN
1. The Parties shall not require a certificate of origin demonstrating that a good is originating in the case of:
(a) an importation of goods whose customs value does not exceed one thousand United States dollars (US$1,000) or its equivalent in national currency or such greater amount as the Party may establish; or
(b) an importation of goods for which the importing Party has waived the requirement to present a certificate of origin.
2. Paragraph 1 shall not apply to imports, including staged imports, that are made or intended to be made for the purpose of evading compliance with the certification requirements of this Chapter.
Article 3.23. COOPERATION BETWEEN AUTHORITIES
1. In the event that doubts arise as to the authenticity or other elements related to the completion of the certificate of origin, including the origin criteria, the customs authority of the importing Party may request, by written request, information from the competent authority of the exporting Party, for the purpose of verifying the foregoing. The response to the request shall be based on the information provided by the exporter at the time of issuance of the certificate of origin.
2. In this case, the competent authority of the exporting Party shall have a period of 30 days following the date of receipt of the request to provide the requested information.
3. In the event that the customs authority of the importing Party does not receive the requested information within the established period or doubts persist regarding the elements of the certificate of origin, it may initiate a verification process in accordance with Article 3.24.
4. In the event that the competent authority of the exporting Party does not recognize the authenticity of the certificate of origin, the customs authority of the importing Party may deny preferential tariff treatment to the goods covered by the certificate of origin under review.
Article 3.24. VERIFICATION PROCESS
1. In order to determine whether a good imported by one Party from the other Party qualifies as an originating good, the competent authority of the importing Party may conduct a verification of origin through:
(a) written requests for information to the exporter or producer;
(b) written questionnaires addressed to the exporter or producer;
(c) visits to the facilities of an exporter or producer in the territory of the other Party, for the purpose of observing the facilities and the production process of the good and reviewing the origin-related records, including accounting books and any supporting documents referred to in Article 3.20. The competent authority of the exporting Party may participate in these visits, as an observer; or
(d) such other procedures as the Parties may agree.
2. The customs authority of the importing Party shall notify the exporter, producer and importer of the initiation of the verification process and send a copy of the notification to the competent authority of the exporting Party.
3. For the purposes of this Article, the customs authority of the importing Party carrying out the verification of origin shall notify by certified mail with return receipt requested or by any means that provides evidence of receipt of the notification and of the written requests for information, questionnaires and visits to the exporters or producers.
4. For the purposes of paragraphs 1(a) and 1(b), the exporter or producer shall respond to the request for information or questionnaire made by the customs authority of the importing Party within a period of 30 days from the date of receipt thereof. During such period, the exporter or producer may, only once, request in writing to the customs authority of the importing Party the extension of such period, which may not exceed 30 additional days. If within the established period, the exporter or producer does not duly complete the questionnaire, does not provide the requested information or does not respond, the customs authority of the importing Party shall deny preferential tariff treatment for the good in question.
5. When the customs authority of the importing Party has received the response to the written request for information or the questionnaire referred to in paragraphs 1(a) and 1(b), within the corresponding time limit, and considers that it requires further information to verify the origin of the good subject to verification, it may make a new request to the exporter or producer, which shall be sent within a period not to exceed 30 days from the date of receipt of the request for additional information.
6. The importer within a period of 30 days from the notification of the initiation of the verification of origin process, may provide the documents, evidence or statements they deem relevant. Additionally, the importer may request, only once and in writing, an extension to the customs authority of the importing Party, which may not exceed 30 days. The mere fact that the importer does not provide documents, evidence or statements shall not be sufficient reason for the customs authority to deny preferential tariff treatment.
7. For the purposes of paragraph 1(c), the customs authority of the importing Party shall give written notice of such request at least 30 days prior to the verification visit to the exporter or producer. In the event that the exporter or producer does not consent in writing to the visit in written consent to the visit within 15 days from the date of receipt of the notification, the customs authority of the importing Party shall deny preferential tariff treatment to the good in question. The request for the visit shall be communicated to the competent authority of the exporting Party.
8. Where the exporter or producer receives a notification pursuant to paragraph 7, it may request, once only, within 15 days from the date of receipt of the notification, the postponement of the proposed verification visit for a period not exceeding 30 days from the date on which the notification was received, or for such longer period as may be agreed between the customs authority of the importing Party and the exporter or producer. For this purpose, the customs authority of the importing Party shall communicate the postponement of the visit to the competent authority of the exporting Party.
9. A Party shall not deny preferential tariff treatment solely on the basis of the postponement of the verification visit.
10. The customs authority of the importing Party shall draw up a record of the visit, which shall contain the facts found by it and, if applicable, a list of the information or documentation collected. Said report may be signed by the producer or exporter. In the event that the producer or exporter refuses to sign the minutes, this fact shall be recorded, without affecting the validity of the visit.
11. The customs authority of the importing Party shall, within a period not exceeding 365 days from the date of receipt of the notification of the initiation of the verification process, notify the exporter or producer in writing of the results of the determination of origin of the merchandise, including the factual and legal grounds for the determination. It shall also send a copy to the competent authority of the exporting Party.
12. Once the period established in paragraph 11 has elapsed without the customs authority of the importing Party having issued a determination of origin, it shall proceed to accept the preferential tariff treatment corresponding to the good subject to verification.
13. The customs authority of the importing Party shall notify the importer in writing of the result of the origin verification process, which shall be accompanied by the legal and factual basis for the determination, respecting the confidentiality of the information provided by the exporter or producer.
14. If as a result of a verification of origin process, pursuant to this Article, the customs authority of the importing Party determines that the good does not qualify as originating, it shall deny preferential tariff treatment to the good subject to verification. Likewise, such customs authority of the importing Party may suspend preferential tariff treatment to any subsequent imports of identical goods that have been produced by the same producer, until it is demonstrated before the customs authority of the importing Party that the goods qualify as originating according to the provisions of this Chapter.
15. The suspension of preferential tariff treatment, pursuant to paragraph 14, shall be communicated by the customs authority of the importing Party to the exporter or producer, importer and the competent authority of the exporting Party, stating the factual and legal grounds justifying its determination, and respecting the confidentiality of the information.
Article 3.25. SANCTIONS
Each Party shall maintain or adopt criminal, civil or administrative penalties for violations related to the provisions of this Chapter, in accordance with its legislation.
Article 3.26. REVIEW AND APPEAL REMEDIES
Each Party shall ensure, with respect to its administrative acts related to the determination of origin, that importers, exporters, or producers have access to:
(a) a level of administrative review independent of the official or agency that issued the administrative act; and
(b) a level of judicial review of the administrative act.
Article 3.27. CONFIDENTIALITY
1. Each Party shall maintain, in accordance with its law, the confidentiality of information provided in the context of a verification of origin process.
2. Such information shall not be disclosed without the express consent of the person providing it, except where such information is required in the context of judicial or administrative proceedings.
3. Any breach of confidentiality of information shall be dealt with in accordance with the legislation of each Party.
Article 3.28. INVOICING BY A THIRD COUNTRY
In the case of an importation of originating goods in accordance with the provisions of this Chapter, the invoice presented at the time of importation may be issued by a person located in the territory of a non-Party. In such a case, this shall be reflected in the certificate of origin, in accordance with Annex 3-B.
Article 3.29. UNIFORM REGULATIONS
1. The Parties may, on the date of entry into force of this Agreement or on such other date as the Parties may agree, establish uniform regulations concerning the interpretation, application, and administration of this Chapter, which may be adopted by the Commission.
2. Once the uniform regulations have been agreed, each Party shall put them into effect, including any modifications or additions thereto, no later than 180 days after the respective agreement between the Parties, or such other period as the Parties may agree.
Article 3.30. SENDING AND RECEIVING ELECTRONIC CERTIFICATES OF ORIGIN
1. The electronic certificate of origin:
(a) shall only be valid if digitally signed by an official of the competent authority, designated for that purpose;
(b) shall have a unique number by which each certificate may be individually identified; and
(c) shall be exchanged between the competent authorities by a pre-agreed electronic means.
2. The procedure for sending and receiving the electronic certificate of origin is included in Annex 3-C.
Article 3.31. DEFINITIONS
For the purposes of this Chapter:
aquaculture means the farming or rearing of aquatic species, including but not limited to: fish, mollusks, crustaceans, other invertebrates and plants, covering their complete or partial life cycle, from seed such as eggs, immature fish, fry and larvae. It is carried out in a selected and controlled environment, in natural or artificial water environments, in marine, fresh or brackish waters. It includes stocking or seeding activities, and restocking or replanting, cultivation, as well as research activities and the processing of the products derived from such activity;
customs authority means:
(a) for the case of Colombia, the National Tax and Customs Directorate; and
(b) in the case of Costa Rica, the National Customs Service;
or its successors;
competent authority means:
(a) in the case of Colombia, the Dirección de Impuestos y Aduanas Nacionales; and.
(b) in the case of Costa Rica, the Promotora de Comercio Exterior de Costa Rica (PROCOMER);
or its successors;
CIF means the transaction value of the imported merchandise, including insurance and freight costs to the port or place of entry in the country of importation, regardless of the means of transportation;
containers and packing materials for shipment means goods used to protect a good during transportation and does not include containers and materials in which the good is packed for retail sale;
exporter means a person located in the territory of a Party from which the good is exported;
FOB means the value of the good free on board, including the cost of transportation to the final port or place of shipment, regardless of the mode of transport;
importer means a person located in the territory of a Party into which the good is imported;
material means a good that is used in the production of another good, including any component, ingredient, raw material, part or piece;
intermediate material means an originating material that is produced by the producer of a good and used in the production of that good;
good means any product, article or material;
non-originating good or non-originating material means a good or material that is non-originating in accordance with this Chapter;
fungible goods or materials means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical and which cannot be distinguished from one another by simple visual examination;
identical goods means identical goods as defined in the Customs Valuation Agreement;
Generally Accepted Accounting Principles means recognized consensus or substantial support authorized and adopted 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 the growing, extracting, harvesting, fishing, fishing, breeding, trapping, hunting, shooting, manufacturing, processing, or assembling of a commodity; and
producer means a person who engages in the production of a good in the territory of a Party.
Chapter 4. TRADE FACILITATION AND CUSTOMS PROCEDURES
Article 4.1. PUBLICATION
1. Each Party shall publish its legislation, regulations, and customs procedures, either physically or on the Internet.
2. Each Party shall designate and maintain one or more inquiry points to address inquiries from interested persons regarding customs matters, and shall make available on the Internet information regarding the procedures to be followed in making such inquiries.
3. To the extent practicable, each Party shall publish in advance any regulations of general application on customs matters that it proposes to adopt, and shall provide interested persons with an opportunity to comment prior to their adoption.
4. Each Party shall endeavor to ensure that its customs legislation, regulations and procedures are transparent, trade facilitating and non-discriminatory.