5. Each Party shall provide that the certification of origin for a good imported into its territory may be completed in English or Spanish. Each Party may nonetheless require the importer to submit a translation of the certification of origin into a language of the importing Party.
6. Each Party shall permit certification of origin to apply to:
(a) asingle shipment of one or more goods into the Party's territory; or
(b) multiple shipments of identical goods into the Party's territory that occur within any period specified in the certification of origin, but not exceeding 12 months.
7. Each Party shall provide that the certification of origin shall be valid for one year from the date of its signature or for such longer period specified by the laws and regulations of the importing Party.
8. Each Party shall provide that a certification of origin:
(a) need not follow a prescribed format;
(b) be in writing, including digital format;
(c) specifies that the good is both originating and meets the requirements of this Chapter, and
(d) contains a set of minimum data requirements as set out in Annex 4-B. 9. Each Party shall allow the certification of origin to be completed and submitted in an electronic manner, including digital format, and shall accept the submission of the certification of origin with an electronic or digital signature.
Article 4.20. Non-Party Invoice
A Party shall not reject a claim for preferential tariff treatment for the sole reason that the invoice was issued in a non-Party.
Article 4.21. Minor Errors or Discrepancies
A Party shall not reject a certification of origin due to minor errors or discrepancies in the certification of origin that do not create doubts concerning the correctness of the information contained in the import documentation. A difference between the tariff classification (HS code) of the good in the certification of origin and the import declaration would not constitute a minor error.
Article 4.22. Waiver of Certification of Origin
The certification of origin shall not be required if:
(a) the customs value of the imported good does not exceed US$ 1,000 (United States dollars) or its equivalent in the currency of the importing Party or a higher amount as the importing Party may establish, provided that the importation does not form part of aseries of importations carried out or planned with the purpose of evading compliance with the certification requirements set out in Article 4.19; or
(b) it is a good for which the importing Party has waived the requirementfor a certification of origin.
Article 4.23. Obligations Regarding Importations
1. Except as otherwise provided in this Chapter, each Party shall require an importer in its territory that claims preferential tariff treatment to:
(a) make a declaration that the good qualifies as an originating good;
(b) havea valid certification of origin in its possession at the time the declaration referred to in subparagraph (a) is made;
(c) provide, on the request of the importing Party, a copy of the certification of origin and such other documentation relating to the importation of the good in accordance with the laws and regulations of the importing Party;
(d) if required by a Party to demonstrate that the requirements in Article 4.17 have been satisfied, provide relevant documents, suchas transport documents, and in the case of storage, storage or customs documents; and
(e) presenta corrected declaration and pay any customs duty owing, if the importer has reason to believe that the certification of origin on which the declaration of importation was based contains incorrect information.
2. An importing Party shall not subject an importer to a penalty for making an invalid claim for preferential tariff treatment if the importer, on becoming aware that such claim is not valid and prior to discovery of the error by that Party, voluntarily corrects the claim and pays any applicable customs duty under the circumstances provided for under the Party's laws and regulations.
3. The importing Party may deny preferential tariff treatment to the good if the importer fails to comply with any applicable requirement under this Chapter. Article 4.24: Refund of Customs Duties
If a good would have qualified as an originating good when it was imported into the territory of a Party, but no claim for preferential tariff treatment was made at the time of importation, the importing Party shall permit the importer, within a period of at least one year, or for such longer period specified by the importing Party's laws and regulations, after the date of importation, to make a claim for preferential tariff treatment and request a refund of customs duties paid in excess, provided that the request is accompanied by:
(a) a written statement that the good qualified as originating at the time of importation;
(b) the certification of origin; and
(c) any other documentation in connection with the importation of the good that the customs authority requests.
Article 4.25. Obligations Regarding Exportations
1. Each Party shall provide that an exporter or a producer in its territory that completes a certification of origin shall submit a copy of that certification of origin to the exporting Party, on its request.
2. Each Party may provide that a false certification of origin or other false information provided by an exporter or a producer in its territory to support a claim that a good exported to the territory of the other Party is originating has the same legal consequences, with appropriate modifications, as those that would apply to an importer in its territory that makes a false statement or representation in connection with an importation.
3. Each Party shall provide that if an exporter or a producer in its territory has provided a certification of origin and has reason to believe that it contains or is based on incorrect information, the exporter or the producer shall promptly notify, in writing, every person to whom the exporter or the producer provided the certification of origin of any change that could affect the accuracy or validity of the certification of origin.
4. A Party shall not impose penalties on an exporter or a producer in its territory that voluntarily provides, prior to the discovery of the error by that Party, written notification pursuant to paragraph 3 with respect to the making of an incorrect certification of origin.
Article 4.26. Records
1. Each Party shall provide that an exporter or a producer in its territory that provides a certification of origin referred to in Article 4.19 shall maintain, for a period of no less than five years after the date the certification of origin was signed, all records necessary to demonstrate that the good for which the exporter or the producer provided the certification of origin was an originating good.
2. Such records may include documents related to:
(a) the purchase, cost, value, transport and shipping of the exported good;
(b) the purchase, cost and value of all materials, including indirect materials, used in the production of the exported good; and
(c) the production of the good in the form in which it was exported.
3. Each Party shall require an importer claiming preferential tariff treatment for a good imported into its territory to maintain documentation relating to the importation of the good, including a copy of the certification of origin, for a period of no less than five years after the date of importation of the good.
4. Each Party shall provide that an importer, exporter or producer in its territory may choose to maintain the documentation or records specified in paragraphs 1 to 3 in any medium that allows for prompt retrieval, including electronic, optical, magnetic or written form, in accordance with that Party's laws and regulations.
5. A Party may deny preferential tariff treatment to a good that is the subject of a verification of origin where the exporter, producer or importer of the good that is required to maintain records or documentation under this Article:
(a) fails to maintain records or documentation relevant to determining the origin of the good in accordance with the requirements of this Chapter; or
(b) denies access to such records or documentation.
Article 4.27. Verification of Origin
1. For the purpose of determining whether a good imported into its territory is originating, the importing Party may conduct a verification of any claim for preferential tariff treatment by one or more of the following:
(a) a written request for information, including documentation from the importer of the good;
(b) a written request for information, including documentation from the exporter or producer of the good;
(c) a verification visit to the premises of the exporter or producer of the good in order to request information, including documentation, and to observe the production process and the facilities used in the production of the good; or
(d) any other procedure as may be mutually decided by the Parties.
2. If an importing Party conducts a verification, it shall accept information, including documentation, directly from the importer, exporter or producer.
3. If in response to a request for information by an importing Party under paragraph 1 (a), the importer does not provide information to the importing Party or the information provided is not sufficient to demonstrate that the good is originating, the importing Party shall request information from the exporter or producer under paragraph 1(b) or 1(c) before it may deny the claim for preferential tariff treatment. The importing Party shall complete the verification, including any additional requestto the exporter or producer under paragraph 1 (b) or 1(c), within the time provided in paragraph 6(e).
4. Any request under paragraphs 1(a) through 1(c) shall:
(a) be in English or in an official language of the Party of the person to whom the request is made;
(b) include the identity of the government authority issuing the request;
(c) state the reason for the request, including the specific issue the requesting Party seeks to resolve with the verification;
(d) include sufficient information to identify the good that is being verified;
(e) include a copy of relevant information submitted with the good, including if possible, the certification of origin; and
(f) in the case of a verification visit, request the written consent of the exporter or producer whose premises are going to be visited, and state the proposed date and location for the visit and its specific purpose.
5. If an importing Party has initiated a verification in accordance with paragraph 1 (b) or 1(c), it shall inform the importer of the initiation of the verification.
6. For a verification under paragraphs 1(a) through 1(c), the importing Party shall:
(a) ensure that a written request for information and for documentation to be reviewed during a verification visit, is limited to information and documentation to determine whether the good is originating;
(b) describe the information or documentation in sufficient detail to allow the importer, exporter or producer to identify the information and documentation necessary to respond;
(c) allow the importer, exporter or producer at least 30 days from the date of receipt of the written request for information under paragraph 1 (a) or 1(b) to respond;
(d) allow the exporter or producer 30 days from the date of receipt of the written request for a visit under paragraph 1(c) to consent or refuse the visit request; and
(e) make a determination following a verification as expeditiously as possible within 90 days after it receives the information necessary to make the determination, including, if applicable, any information received under paragraph 9, and no later than 365 days after the first request for information or other action under paragraph 1. If permitted by its laws and regulations, a Party may extend the periods of 90 and 365-days in exceptional cases, such as where the technical information concerned is very complex.
7. fan importing Party makes a verification request under paragraph 1 (b), it shall inform the Party where the exporter or producer is located, in accordance with the importing Partyâs laws and regulations. In addition, on request of the importing Party, the Party where the exporter or producer is located may, as it deems appropriate and in accordance with its laws and regulations, assist with the verification. This assistance may include providing a contact point for the verification, collecting information from the exporter or producer on behalf of the importing Party, or other activities in order that the importing Party may make a determination as to whether the good is originating. The importing Party shall not deny a claim for preferential tariff treatment solely on the ground that the Party where the exporter or producer is located did not provide requested assistance.
8. If an importing Party initiates a verification under paragraph 1 (c), it shall, at the time of the request for the visit, inform the Party where the exporter or producer is located and provide the opportunity for the officials of the Party where the exporter or producer is located to accompany them during the visit.
9. Prior to issuing a written determination, the importing Party shall inform the importer and any exporter or producer that provided information directly to the importing Party, of the results of the verification and, if the importing Party intends to deny preferential tariff treatment, provide those persons a period of at least 30 days for the submission of additional information relating to the origin of the good.
10. The importing Party shall provide the exporter or producer that certified the good was originating and is the subject of a verification, with a written determination of whether the good is originating, including findings of facts and the legal basis for the determination.
11. During verification, the importing Party shall allow the release of the good, subject to payment of duties or provision of security as provided for under its laws and regulations. If as a result of the verification the importing Party determines that the good is an originating good, it shall grant preferential tariff treatment to the good and refund any excess duties paid or release any security provided, unless the security also covers other obligations.
12. If verifications of identical goods by a Party indicate a pattern of conduct by an importer, exporter or producer of false or unsupported representations relevant to a claim that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods imported, exported or produced by that person until that person demonstrates that the identical goods qualify as originating. For the purposes of this paragraph, "identical goods" means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating.
13. For the purpose of a verification request, it is sufficient for a Party to rely on the contact information of an exporter, producer or importer in a Party provided in a certification of origin.
14. For purposes of this Article, any communication that requires response within a specified timeframe shall be sent by any means that can produce a confirmation of receipt. The timeframes referred to in this Article shall begin from the date of such receipt.
Article 4.28. Determinations of Origin
1. Each Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good that arrives in its territory on or after the date of entry into force of this Agreement for that Party. In addition, if permitted by the importing Party, the importing Party shall grant a claim for preferential tariff treatment made in accordance with this Chapter for a good which is imported into its territory or released from customs control on or after the date of entry into force of this Agreement for that Party.
2. The importing Party may deny a claim for preferential tariff treatment if:
(a) it determines that the good does not qualify for preferential tariff treatment according to the applicable provisions of this Chapter;
(b) pursuant to a verification under Article 4.27, it has not received sufficient information to determine that the good qualifies as originating;
(c) the exporter, producer or importer fails to respond to a written request for information in accordance with Article 4.27;
(d) after receipt of a written notification for a verification visit, the exporter or producer does not provide its written consent for a verification visit in accordance with Article 4.27;
(e) the exporter, producer or importer of a good that is subject to a verification of origin fails to maintain records or documentation relevant to determining the origin of the good in accordance with the requirements of this Chapter or denies access to such records or documentation; or
(f) the exporter, producer or importer fails to comply with the requirements of this Chapter.
3. If an importing Party denies a claim for preferential tariff treatment, it shall issue a determination to the importer that includes the reasons for the determination.
Article 4.29. Penalties
Each Party shall establish or maintain measures that allow for the imposition of criminal, civil or administrative penalties for violations of its laws and regulations relating to this Chapter.
Article 4.30. Confidentiality
1. Each Party shall maintain, in accordance with its laws and regulations, the confidentiality of the information collected under this Chapter and shall protect that information from disclosure that could prejudice the competitive position of a person to whom the information relates. If the Party collecting information is required by its laws and regulations to disclose the information, that Party shall notify the person or Party who provided that information.
2. Each Party shall ensure that the information collected under this Chapter is not used for purposes other than the administration or enforcement of determinations of origin, except with the authorisation of the person or Party who provided the information.
3. Notwithstanding paragraph 2, a Party may allow information collected under this Chapter to be used in any administrative, quasi-judicial or judicial proceedings instituted for failure to comply with its related laws and regulations.
Article 4.31. Administration of this Chapter and Chapter 5
1. Matters relating to administration of this Chapter and Chapter 5 (Customs Administration and Trade Facilitation) shall be considered by the Parties through the Trade in Goods Committee established under Article 22.5(a) (Establishment of Cross-Cutting Committees).
2. The Trade in Goods Committee shall have the following additional functions under this Chapter and Chapter 5 (Customs Administration and Trade Facilitation), as the case may be:
(a) consulting with a view to ensuring that this Chapter and Chapter 5 (Customs Administration and Trade Facilitation) are administered consistently and uniformly with the objectives of this Agreement;
(b) consulting to discuss possible amendments or modifications to this Chapter, its Annexes and its Appendices and Chapter 5 (Customs Administration and Trade Facilitation), taking into account developments in technology, production processes or other related matters;
(c) preparing updates to this Chapter that are necessary to reflect changes to the Harmonized System;
(d) resolving any discrepancy related to tariff classification. If the Committee does not reach a decision on this matter, it may make appropriate consultations to the World Customs Organization whose recommendation shall be taken into consideration by the Parties;
(e) consulting on the technical aspects of submission and the format of the electronic certification of origin; and
(f) endeavour to develop cooperation actions for accumulation, verification procedures and exchange of information to ensure the correct implementation of this Chapter, in particular for origin determination.
Article 4.32. Committee on Short Supply
The Parties establish a Committee on Short Supply ("CSS"), which shall operate in accordance with the provisions in Annex 4-C.
Article 4.33. CSS Criteria
1. Any Party may request a waiver for the use of non-originating materials classified under Chapters 50 through 60 of the Harmonized System (HS) used in the production of a good classified under Chapter 50 through 63 of the Harmonized System (HS). If a waiver is granted, such non- originating material shall be accepted as originating material in fulfilling the product specific rules of origin set outin Annex 4-A forsuch good. A waiver shall only be sought if the requested material cannot be supplied from any or all of the Parties due to any of the shortage situations stipulated in paragraph 18 of Annex 4-C.
2. For the purposes of paragraph 1, the CSS shall execute the procedure established in Annex 4-C. In the case there is supply of the requested material in the territory of the Parties, representatives of the CSS shall guarantee to the requesting Party that the shortage situations do not exist as stipulated in paragraph 18 of Annex 4-C (Committee on Short Supply), in accordance with the information provided in the investigation and the procedure provided in Annex 4-C.
3. If the requesting Party does not receive a response within the timeframe stipulated under Annex 4-C or there is no supply of the requested material, it shall be understood that there is a shortage situation in the territory of the Parties. The usage of the non -originating material shall start from the date of entry into force of the decision issued by the CSS in accordance with the procedure established in Annex 4-C.
Chapter 5. CUSTOMS ADMINISTRATION AND TRADE FACILITATION
Article 5.1. Definitions
For the purposes of this Chapter:
AEO means an Authorised Economic Operator;
TFA Agreement means the Trade Facilitation Agreement, set out in Annex 1A to the WTO Agreement;
WCO means the World Customs Organization; and
WCO SAFE Framework means Framework of Standards to Secure and Facilitate Global Trade.
Article 5.2. Scope
This Chapter shall apply to customs procedures for goods traded between the Parties, in accordance with their laws and regulations.
Article 5.3. Objectives
The objectives of this Chapter are to:
(a) ensure predictability, consistency and transparency in the application of customs laws and regulations of the Parties;
(b) promote efficient administration of customs procedures, and the expeditious release of goods;
(c) simplify customs procedures of the Parties and harmonise them to the extent possible with relevant international standards;
(d) promote co-operation between the customs administrations of the Parties; and
(e) facilitate trade between the Parties, including through a strengthened environment for global and regional supply chains.
Article 5.4. Affirmation of the Trade Facilitation Agreement
The Parties affirm their rights and obligations under the TFA Agreement. If a Party has not comprehensively implemented the TFA Agreement, that Party shall implement, to the extent possible, the remaining obligations in Section I of the TFA Agreement no later than the date of entry into force of this Agreement.
Article 5.5. Confidentiality
1. If a Party provides information to the other Party in accordance with this Chapter and designates the information as confidential, the other Party shall keep the information confidential. The Party that provides the information may require the other Party to furnish written assurance that the information will be held in confidence, used only for the purposes specified in the other Partyâs request for information, and not disclosed without the specific permission of the Party that provided the information or the person that provided the information to that Party.
2. A Party may decline to provide information requested by the other Party if that Party has failed to act in accordance with paragraph 1.
3. Each Party shall adopt or maintain procedures for protecting from unauthorised disclosure confidential information submitted in accordance with the administration of the Party's customs laws and regulations, including information the disclosure of which could prejudice the competitive position of the person providing the information.
Article 5.6. Transparency
1. Each Party shall make publicly available, including on the Internet:
(a) Its customs laws and regulations;
(b) its customs procedures and guidelines related to the importation, exportation and transit of goods, in a manner that is comprehensive, clear, and concise;
(c) any additional information a Party is required to publish under the TFA Agreement and Article X of the GATT 1994, as well as quasi-judicial decisions, where applicable, of general application; and
(d) if applicable, a description of the guarantee or security regime as referred to in Article 5.9, including the basis for determining the guarantee or security amount.
2. The information in paragraph 1 shall be made available free of charge and without registration requirements, and, to the extent possible, through a single website. To the extent possible, each Party shall make the information referred to in paragraph 1 available in English.
3. Each Party shall periodically review, and update as necessary, the publication of the information listed in paragraph 1.
4. Each Party shall designate or maintain one or more enquiry points to address enquiries from interested persons concerning customs matters, and shall provide easily accessible points of contact on the internet for making such enquiries.
5. No Party shall require the payment of fee for answering general enquiries under paragraph 4. A Party may require payment of a fee with respect to enquiries requiring document search, duplication, and review in connection with requests under its laws and regulations providing public access to government records.
6. To the extent possible, each Party shall publish, including on the internet, any laws and regulations of general application governing customs matters that it proposes to adopt, and provide to interested persons the opportunity to provide comments prior to its adoption.
7. Each Party shall establish or maintain mechanisms for regular consultations between its customs administration and traders within its territory to provide an opportunity for the customs administration to consider the concerns or evolving needs of traders.
Article 5.7. Use of Customs Brokers
1. Without prejudice to the important policy concerns of the Parties that currently maintain a role for customs brokers, from the entry into force of this Agreement, Parties shall not introduce the mandatory use of customs brokers.
2. Each Party shall publish its measures on the use of customs brokers. Any subsequent modifications thereof shall be notified and published promptly.
3. With regard to the licensing of customs brokers, Parties shall apply rules that are transparent and objective.
Article 5.8. Consistency In Tariff Classification and Customs Valuation
1. Each Party shall adopt or maintain measures that promote consistency throughout its territory in the tariff classification and customs valuation of goods. This includes taking into account relevant jurisprudence and measures such as training of customs officials and traders, providing internal guidance, or issuing internal policy documents that serve to guide customs officials.