(b) Peru: the entity designated by the competent authority to issue Certificates of Origin, in accordance with national legislation. In the case of Peru, the competent authority is in charge of issuing Certificates of Origin and may delegate the issuance of Certificates of Origin to authorized entities,
or their successors;
exporter means a person located in the territory of a Party from which the good is exported;
FOB means the value of the goods free on board, including the cost of transportation to the final port or place of shipment, regardless of the means 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;
merchandise means any product, article or material;
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 WTO Customs Valuation Agreement;
hon-originating good or non-originating material means a good or material that is not an originating good or material under this Chapter,
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 cultivation, extraction, harvesting, fishing, breeding, trapping, hunting, hunting, 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, including on the Internet, its customs legislation, regulations, and procedures.
2. Each Party shall designate or maintain one or more consultation points to address inquiries from interested persons on customs matters, and shall make available on the Intemet information regarding the procedures to be followed in making such inquiries.
3. To the extent possible, 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.
5. Information concerning fees and charges related to the supply of services affecting foreign trade provided by a Party shall be published, including on the Intemet.
Article 4.2. Clearance of Goods
1. In order to facilitate trade between the Parties, each Party shall adopt or maintain simplified customs procedures for the efficient clearance of goods.
2. Pursuant to paragraph 1, each Party shall adopt or maintain procedures that:
(a) provide for the release of goods within a period no longer than that required to ensure compliance with their customs legislation, and to the extent possible, for the goods to be released within forty-eight (48) hours of arrival; and
(b) allow goods to be cleared at the point of arrival, without mandatory transfer to warehouses or other premises, except when the customs authority needs to exercise additional controls or for infrastructure reasons.
Article 4.3. Automation
1. Each Party shall endeavor to use information technology that makes the procedures for the clearance of goods expeditious and efficient. In choosing the information technology to be used for this purpose, each Party shall:
(a) will strive to use intemationally recognized norms, standards and practices; (b) will make the electronic systems accessible to its customs users;
{c) shall allow the electronic transmission and processing of information and data prior to the arrival of the goods, in order to allow their clearance in accordance with Article 4.2;
(d) employ electronic and/or automated systems for risk analysis and management,
(e) work on the development of compatible electronic systems between the Partiesâ customs authorities to facilitate the exchange of intemational trade data between them; and
(f) will work to develop the set of common data elements and processes in accordance with the World Customs Organization (hereinafter WCO) Customs Data Model and related WCO recommendations and guidelines.
2. Each Party shall adopt or maintain, to the extent possible, procedures that permit expeditious control of means of transport of goods leaving or entering its territory.
Article 4.4. Risk Administration or Management
1. Each Party shall endeavor to adopt or maintain risk management systems that enable its customs authority to focus its inspection activities on high-risk goods, and that simplify the clearance and movement of low-risk goods, while respecting the confidential nature of information obtained through such activities.
2. In implementing risk management, each Party shall inspect imported goods based on appropriate selectivity criteria, avoiding physical inspection of all goods entering its territory, and to the extent possible, with the aid of non-intrusive inspection instruments.
Article 4.5. Transit of Goods
Each Party shall grant free transit to the goods of the other Party, in accordance with Article V of the Agreement GATT 1994, including its interpretative notes.
Article 4.6. Expedited Delivery Shipments
1. Each Party shall adopt or maintain special customs procedures for fast delivery shipments, while maintaining appropriate control and selection systems in accordance with their nature.
2. The procedures referred to in paragraph 1 shall:
(a) provide for separate and expedited customs procedures for fast delivery shipments;
(b) provide for the submission and processing of information necessary for the clearance of an expedited shipment, prior to the arrival of the shipment,
(c) to allow the presentation of a single cargo manifest covering all the goods contained in a shipment transported by an express delivery service, through electronic means;
(d) provide for the clearance of lower risk and/or lower value goods with a minimum of documentation;
(e) under normal circumstances, provide for the clearance of expedited shipments within six (6) hours of the presentation of the necessary customs documents, provided the shipment has arrived; and
(f) under normal circumstances, provide that no tariffs shall be fixed for the expedited delivery of correspondence, documents, newspapers and periodicals for non-commercial purposes.
Article 4.7. Authorized Economic Operator
The Parties shall promote the implementation of Authorized Economic Operators in accordance with the WCO Framework of Standards to Secure and Facilitate Global Trade (known as the SAFE Framework of Standards), to facilitate the clearance of their goods. Their obligations, requirements and formalities shall be established in accordance with the national legislation of each Party.
Article 4.8. Foreign Trade Single Window
The Parties shall promote the creation of a Foreign Trade Single Window to expedite and facilitate trade. To the extent possible, the Parties shall seek the interconnection between their Foreign Trade Single Windows.
Article 4.9. Review and Appeal
Each Party shall ensure, with respect to administrative acts in customs matters, that natural or legal persons subject to such acts have access to:
(a) a level of administrative review, which is independent of the official or office that issued such act, and
(b) at least one level of judicial review.
Article 4.10. Sanctions
Each Party shall adopt or maintain measures to permit the imposition of administrative and, where appropriate, criminal penalties for violations of customs laws and regulations, including those goveming tariff classification, customs valuation, origin, and claims for preferential treatrnent.
Article 4.11. Early Resolutions
1. Each Party shall issue in writing an advance ruling prior to the importation of a good into its territory, wnen an importer in its territory, or an exporter or producer in the territory of the other Party (1) has so requested in writing, with respect to:
(a) tariff classification;
(b) the application of customs valuation criteria for a particular case, in accordance with the application of the provisions contained in the WTO Customs Valuation Agreement (2),
(c) whether a good is originating under Chapter 3 (Rules of Origin and Origin Procedures);
(d) whether a good reimported into the territory of a Party after having been exported to the territory of another Party for repair or alteration is eligible for duty-free treatment under Article 2.6 (Goods Reimported after Repair or Alteration); and
(e) such other matters as the Parties may agree.
2. Each Party shall issue the advance ruling within one hundred and fifty (150) days of the filing of the request, provided that the requester has submitted all information that the Party requires, including, if requested, a sample of the good for which the requester is requesting the advance ruling. In issuing the advance ruling, the Party shall take into account the facts and circumstances that the applicant has submitted.
3. Each Party shall provide that advance rulings shall take effect from the date of their issuance, or such other date specified in the ruling provided that the facts or circumstances on which the ruling is based have not changed.
4. The Party issuing the advance ruling may modify or revoke it after having notified the applicant, when the criteria, facts, circumstances, laws, regulations or rules on which it was based change or when it was based on incorrect or false information. In the event that such modification or revocation is based on a change in the criteria, facts, circumstances, laws, regulations or rules on which they were based, such modification or revocation may be applied from the date on which such criteria, facts, circumstances, laws, regulations or rules take effect. In case of incorrect or false information, such modification or revocation may be applied from the date of the issuance of such advance ruling.
5. Subject to confidentiality requirements under its domestic law, each Party may make its advance rulings publicly available.
6. If an applicant provides false information or omits relevant facts or circumstances related to the advance ruling, or fails to act in accordance with the terms and conditions of the advance ruling, the Parties may apply such measures as may be appropriate, including civil, criminal and administrative actions in accordance with each Party's domestic law.
Article 4.12. Committee on Trade Facilitation and Customs Procedures
1. The Parties establish a Committee on Trade Facilitation and Customs Procedures (hereinafter referred to as the Committee), composed of representatives of each Party.
2. The functions of the Committee shall include:
(a) monitor the implementation and administration of this Chapter and Chapter 5 (Cooperation and Mutual Assistance in Customs Matters);
(b) report to the Commission on the implementation and administration of the Chapters referred to in subparagraph (a), when applicable;
(c) promptly deal with matters that a Party proposes with respect to the development, adoption, application or implementation of the provisions of the Chapters referred to in subparagraph (a);
(d) to promote the joint cooperation of the Parties in the development, application, implementation and improvement of all matters conceming the Chapters referred to in subparagraph (a), including, in particular, customs procedures, customs valuation, tariff regimes, customs nomenclature, customs cooperation, matters relating to free zones, mutual administrative assistance in customs matters, as well as to provide a forum for consultation and discussion on such matters;
(e) at the request of a Party, resolve consultations on any matter arising under the Chapters referred to in subparagraph (a), within a period of thirty (30) days;
(f) to deal with any other matter related to the Chapters referred to in subparagraph (a).
3. Unless otherwise agreed by the Parties, the Committee shall meet at least once (1) a year, on the date and according to the agenda previously agreed by the Parties. The Parties shall determine those cases in which extraordinary meetings may be held.
4. The meetings may be held by any means agreed upon by the Parties. When they are face-to-face, they shall be held altemately in the territory of each Party, and it shall be the responsibility of the host Party to organize the meeting. The first meeting of the Committee shall be held no later than one (1) year after the date of entry into force of this Agreement.
5. Unless otherwise agreed by the Parties, the Committee shall be of a permanent nature and shall develop its working rules.
6. All decisions of the Committee shall be made by mutual agreement.
Chapter 5. Cooperation and Mutual Assistance In Customs Matters
Article 5.1. Scope
1. The Parties, through their competent authorities, shall provide administrative and technical assistance to each other, in accordance with the terms established in this Chapter, for the proper application of customs legislation; for the prevention, investigation and sanctioning of customs offenses and customs infractions; and for the facilitation of customs procedures. Likewise, the Parties, through their competent authorities, shall provide cooperation and mutual assistance on customs matters in general, including the provision of statistics and other similar information that is available, in accordance with the national legislation of each Party.
2. Pursuant to the provisions of this Chapter, and subject to their national legislation, the Parties, within the scope of the competence and available resources of their respective competent authorities, shall cooperate and provide mutual assistance to:
(a) facilitate and expedite the flow of goods and people between the two countries;
(b) preventing, investigating and repressing customs offenses and customs violations; and
(c) promote mutual understanding of each other's customs legislation, procedures and techniques.
3. When a Party becomes aware of any unlawful activity related to its customs legislation or regulations, such Party may request that the other Party provide specific information and documentation, in accordance with its national legislation, in connection with certain customs operations, and/or commercial activities carried out totally or partially in its territory.
4. Assistance, as provided for in this Chapter, shall include, inter alia, at the initiative of a Party or at the request of the other Party, all appropriate information to ensure compliance with customs legislation and the correct assessment of customs duties and other taxes. However, assistance shall not cover requests for the arrest or detention of persons, confiscation or detention of property or the retum of duties, taxes, fines or any other monies on behalf of the other Party, which activities shall be governed by the relevant intemational agreements.
5. This Chapter is intended solely for mutual administrative assistance between the Parties in customs matters, including free zones. The provisions of this Chapter do not entitle any private person to obtain, suppress or exclude any evidence or prevent the execution of a request.
6. Compliance with this Chapter shall be without prejudice to cooperation or assistance between the Parties based on other intemational agreements, including mutual assistance in criminal matters. If mutual assistance is to be provided under other international agreements in force between the Parties, the requested administration shall indicate the name of the respective agreement and the relevant authorities involved.
Article 5.2. Implementation
In order to ensure the proper implementation of this Chapter, each competent authority shall adopt the necessary measures and strengthen cooperation and assistance in the following aspects:
(a) promote the exchange of customs legislation, regulations and procedures;
(b) exchange information on measures to simplify customs procedures and facilitate trade, the movement of means of transport, in accordance with the national legislation of the Parties;
(c) inform on restrictions and/or prohibitions on imports or exports;
(d) maintain constant consultation on issues related to the implementation of customs procedures and trade facilitation;
(e) periodically review its customs procedures; and
(f) implement other measures they deem necessary.
Article 5.3. Communication of Information
1. Upon request, the requested administration shall provide, in accordance with its national legislation, all information on applicable customs legislation, regulations and procedures conceming investigations related to a possible customs offence or customs infringement occurring in the territory of the requesting administration.
2. Both competent authorities shall communicate, ex officio and without delay, any available information on:
(a) new techniques for compliance with customs legislation;
(b) new trends, means or methods used in the commission of customs offenses and customs infringements, and those used in combating them;
(c) new procedures, methods and techniques for customs facilitation; and
(d) other matters of mutual interest.
3. In serious cases involving substantial damage to the economy, public health, public safety or other vital interest of a Party, the competent authority of the other Party shall provide the information referred to in paragraph 1 without delay and on its own initiative.
4. Upon request, the requested administration shall provide information in accordance with its national legislation, on the import procedure operations carried out in its customs territory, of the goods exported from the territory of the requesting administration, including, if required, the procedure for the release of the goods.
5. In addition, at the request of a Party and to the extent of its possibilities and available resources, the requested administration may provide information, in accordance with its national legislation, related to:
(a) persons known to the requesting administration to have committed or to be involved in the commission of an offense;
(b) goods destined for the customs territory of the requesting administration, which are sent in transit or destined for storage for subsequent transit to that territory; or
(c) the means of transport allegedly used in the commission of offenses in the territory of the requesting administration.
Article 5.4. Verification
1. Upon request, the requested administration shall send to the requesting administration information on
(a) the authenticity of official documents produced to support the customs declaration made to the requesting administration;
(b) whether the goods exported from the territory of the Party of the requesting administration have been lawfully imported into the territory of the Party of the requested administration; and
(c) whether the goods imported into the territory of the Party of the requesting administration have been lawfully exported from the tenitory of the Party of the requested administration.
2. In addition, the requested administration shall provide information, in accordance with its national legislation, related to:
(a) the determination of customs duties on goods, and in particular, information on the determination of the customs value;
(b) means of transport and destination of the goods transported, with an indication of the references enabling the goods to be identified;
(c) controls carried out on goods in transit to one of the territories of the Parties from a third country, or
(d) smuggling and customs fraud carried out by its importers and/or exporters.
Article 5.5. Cooperation and Technical Assistance
Where it does not contravene their national legislation, provisions and practices, the competent authorities shall cooperate in customs matters, including:
(a) the exchange of customs experts where mutually beneficial, in order to promote understanding of each Party's customs legislation, procedures and techniques;
(b) training, particularly for the development of specialized skills of its customs officers;
(c) the exchange of professional, scientific and technical information related to customs legislation, regulations and procedures;
(d) the exchange of information on new technologies, methods and procedures in the application of the customs legislation; or
(e) cooperation in the areas of research, development and testing of new customs procedures.
Article 5.6. Applications
1. Requests for assistance under this Chapter shall be addressed directly to the requested administration by the requesting administration, in writing or by electronic means, and accompanied by the necessary documents. The requested administration may request written confirmation of electronic requests.
2. When a request is urgent, it may also be made verbally. Such a request shall be confirmed in writing or by electronic means as soon as possible. As long as the written confirmation has not been received, fulfillment of the request may be suspended.
3. Requests made in accordance with paragraph 1 shall include the following details:
(a) the administrative unit, the name, signature and position of the official making the request,
(b) the information requested and the reason for the request,
(c) a brief description of the subject matter, the legal elements and the nature of the customs procedure;
(d) the names, addresses, identification document or any other known and relevant information of the persons to whom the application relates; and
(e) all necessary information available to identify the goods or the customs declaration related to the application.
4. The information referred to in this Chapter shall be communicated to the officials specially designated for this purpose by each competent authority. For this purpose, each Party shall provide a list of designated officials to the competent authority of the other Party.
5. The requesting administration shall be in a position to provide the same assistance if requested.
Article 5.7. Execution of Applications
1. Arequest for assistance should be fulfilled as soon as possible taking into consideration the available resources of the requested administration. A complete response to a request for assistance shall be provided within ninety (90) days after receipt of the written request.
2. Upon request, the requested administration shall conduct an investigation in accordance with its national legislation to obtain information related to a possible customs offence or customs infringement occurring in the territory of any of the Parties, and shall provide the requesting administration with the results of such investigation and all related information it deems relevant.
3. If the requested information is available in electronic form, the requested administration may provide it electronically to the requesting administration, unless the requesting administration has requested otherwise.
4. If arequest made by any of the competent authorities requires compliance with a certain procedure, this procedure shall be followed in accordance with the national legislation and administrative provisions of the Party of the requested administration.