other relevant supporting documents, if any, as evidence that the requirements of paragraph 2 are being complied with.
Article 4.16: Proof of Origin
A claim that goods shall be accepted as eligible for preferential tariff treatment shall be supported by a Proof of Origin, in accordance with the Operational Certification Procedures, as set out in Annex 4-A.
Article 4.17: Denial of Preferential Treatment
The importing Party may deny preferential tariff treatment or recover unpaid customs duties in accordance with its laws and regulations, where goods do not meet the requirements of this Chapter or where the importer or exporter fails to demonstrate compliance with the relevant requirements.
Article 4.18: Confidentiality
1.
The Parties shall maintain, in accordance with their respective laws and regulations, the confidentiality of classified business information collected in the process of verification pursuant to Rule 15 of Annex 4-A and shall protect that information from disclosure that could prejudice the competitive position of the person who provided the information.
2.
Subject to the laws and regulations and agreement of the Parties, classified information may only be disclosed by the authorities of a Party to the other Party, for the administration and enforcement of origin determination.
Article
4.19:
Penalties
Each Party shall ensure, in accordance with its laws and regulations, that appropriate penalties, sanctions, or other measures are imposed for violations of the laws and regulations related to this Chapter.
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Article 4.20: Transitional Provisions for Goods in Transit or Storage
The provisions of this Agreement may be applied to goods which, on the date of entry into force of this Agreement, are either in transit or in temporary storage in a customs warehouse or free zone under customs control. For such goods, a Proof of Origin may be completed retrospectively up to three months after the entry into force of this Agreement, provided that the provisions of this Chapter have been fulfilled.
Article 4.21: Product Specific Rules Transposition
For purposes of the transposition of the Product Specific Rules (PSR) set out in Annex 4-B as a result of the amendments to the HS, the following subparagraphs shall apply:
(a)
Prior to the entry into force of an amended version of the HS, the Parties shall undertake consultation to prepare updates to Annex 4-B that are necessary to reflect changes to the HS;
(b)
The Parties shall ensure that the transposition of Annex 4-B is carried out without impairing the PSR set out therein and is completed within a reasonable period of time;
(c)
The Joint Committee, upon recommendation of the Committee on Rules of Origin and Customs Procedures, shall adopt the transposition of the PSR in accordance with the nomenclature of the revised HS; and
(d)
The Parties shall promptly publish the adopted transposition document of Annex 4-B in accordance with the nomenclature of the revised HS.
Article 4.22: Consultations
The Parties shall consult regularly to ensure that provisions in this Chapter are administered effectively, uniformly, and consistently in order to achieve the spirit and objectives of this Chapter.
Article 4. 23 Committee on Rules of Origin and Customs Procedures
The Parties hereby establish a Committee on Rules of Origin and Customs Procedures pursuant to Article 5.21 (Committee on Rules of Origin and Customs Procedures).
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Article 4.24: Review and Modification
1.
This Chapter may be reviewed and modified as and when necessary upon request of a Party and may be open to such reviews and modifications as may be agreed upon in the Joint Committee established under Article 11.1 (Joint Committee).
2.
Annexes and Appendices of this Chapter may be modified through amendments endorsed by the Joint Committee. The amendments shall enter into force 60 days after the date on which the Parties have notified in writing the completion of their applicable legal procedures or on such date as the Parties may agree.
Chapter FIVE. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 5.1: Definitions
For purposes of this
Chapter:
competent authority
means the authorities that are responsible under the law of each Party for the administration and enforcement of its customs laws and regulations;
customs laws and regulations
means the statutory and regulatory provisions relating to the importation, exportation, movement,
or storage of goods, the administration and enforcement of which are specifically charged to customs authorities, and any regulations made by customs authorities, under their statutory powers;
customs procedure
means the measures applied by the customs authority of a Party to goods and to the means of transport that are subject to its customs laws and regulations;
express consignment
means all goods imported by or through an enterprise that operates a consignment service for the expeditious cross-border movement of goods and assumes liability to the customs authority
for those goods; and
means of transport
means various types of vessels, vehicles, and aircrafts which enter or leave the customs territory of the Parties carrying persons,
goods,
or articles.
Article 5.2: 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
clearance of goods;
(c)
simplify customs procedures of the Parties and harmonize
them to
the extent possible with relevant international standards;
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(d)
promote cooperation among the customs authorities of the Parties; and
(e)
facilitate trade between the Parties, including through a strengthened environment for global and regional supply chains.
Article 5.3: Scope
This Chapter shall apply to customs procedures applied to goods traded between the Parties and the means of transport which enter or leave the customs territory of the Parties.
Article 5.4: Consistency
1.
Each Party shall ensure consistent implementation and application of its customs laws
and regulations throughout its customs territory. For greater certainty, this does not prevent the exercise of discretion granted to the customs authority of a Party where such discretion is granted by that Party?s customs laws and regulations, provided that the discretion is exercised consistently throughout that Party?s customs territory and in accordance with its customs laws and regulations.
2.
In fulfilling the obligation in paragraph 1, each Party shall endeavor to adopt or maintain administrative measures to ensure consistent implementation and application of its customs laws and regulations throughout its customs territory, preferably by establishing an administrative mechanism which assures consistent application of the customs laws and regulations of that Party among its regional customs offices.
3.
If a Party fails to comply with the obligations in paragraphs 1 and 2, the other
Party may consult with that Party on the matter relating thereto in accordance with Article 5.20.
4.
Each Party is encouraged to share with the other Party its practices and experiences relating to the administrative mechanism referred to in paragraph 2 with a view to improving the operations thereof.
Article 5.5: Transparency
1.
Each Party shall promptly publish, on the internet to the extent possible, the following information in a non-discriminatory and easily accessible manner in order to enable governments, traders, and other interested persons to become acquainted with them:
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(a)
procedures for importation, exportation, and transit (including port, airport, and other entry-point procedures), and required forms and documents;
(b)
applied rates of duties and taxes of any kind imposed on or in connection
with
importation or exportation;
(c)
fees and charges imposed by or for governmental agencies on or in connection with importation, exportation,
or transit;
(d)
rules for the classification or valuation of products for customs purposes;
(e)
laws, regulations, and administrative rulings of general application relating to rules of origin;
(f)
import, export,
or transit restrictions or prohibitions;
(g)
penalty provisions for breaches of import, export, or transit formalities;
(h)
procedures for appeal or review;
(i)
agreements
to which it is party,
or parts thereof,
with any country or countries relating
to importation, exportation, or transit; and
(j)
procedures relating to the administration of tariff quotas.
2.
In particular, each Party shall make available,
and update to the extent possible and as appropriate, the following through the internet:
(a)
a description1
of its procedures for importation, exportation, and transit, including procedures for appeal or review, that informs governments, traders,
and other interested persons of the practical steps needed for importation, exportation, and transit;
(b)
the forms and documents required for importation into, exportation from, or transit through the territory of that Party;
and
(c)
contact information for the enquiry points as well as information on how to make enquiries on customs matters as provided for in Article 5.6.
1
Each Party
has the discretion to state on its website the legal limitations of this description.
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3.
To the extent possible, when developing new, or amending existing, customs laws and regulations, each Party shall publish, or otherwise make readily available such proposed new or amended customs laws and regulations and provide a reasonable opportunity for interested persons to comment on the proposed customs laws and regulations, unless such advance notice is precluded.
4.
Each Party shall, to the extent practicable and in a manner consistent with its domestic law and legal system, ensure that new or amended laws and regulations of general application related to the movement, release, and clearance of goods, including goods in transit, are published or information on them is otherwise
made
publicly available, as early as possible before their entry into force, in order to enable traders and other interested persons to become acquainted with them.
5.
Nothing in this Article shall be construed as requiring the publication or provision of information other than in the language of the Party.
Article 5.6: Enquiry Points
Each Party shall designate one or more enquiry points to answer reasonable enquiries of interested persons concerning customs matters and to facilitate access to forms and documents required for importation, exportation,
and transit.