2. The application form for a Certificate of Origin shall be completed in accordance with the law of the exporting Party.
3. The exporter, producer, or authorised representative under the exporter's responsibility applying for the issuance of a Certificate of Origin shall be prepared to submit at any time, at the request of the Customs Authority of the exporting Party, all appropriate documents proving the originating status of the goods concerned, as well as the fulfilment of the other requirements of this Chapter.
4. Certificates of Origin shall be issued if the goods to be exported can be considered as goods originating in the exporting Party in accordance with this Chapter.
5. The Competent Authority may take any steps necessary to verify the originating status of the goods and the fulfilment of the other requirements of this Chapter. For this purpose, the Competent Authority shall have the right to request evidence and to carry out any inspection of the exporter's books or any other check considered appropriate.
6. Each Certificate of Origin shall be assigned a unique number by the Competent Authority.
7. A Certificate of Origin shall bear an authorised signature and official seal of the Competent Authority. If the official seal is applied electronically, then the Certificate of Origin shall include an authentication verification method such as a QR Code or secured web address.
8. A Certificate of Origin shall be issued before or at the time of shipment, or within three working days after shipment.
9. Any alteration to the Certificate of Origin shall render the certificate void. A new Certificate of Origin shall be issued to replace the erroneous one, indicating the number of the Certificate of Origin that was corrected in the appropriate field in accordance with Annex 3B (Certificate of Origin).
Article 3.22. Certificates of Origin Issued Retrospectively
1. Notwithstanding Article 3.21.8, a Certificate of Origin may be issued retrospectively due to involuntary errors, omissions, or other valid cases, within one year from the date of shipment, in cases where a Certificate of Origin has not been issued before or at the time of shipment or within three working days after shipment.
2. For the implementation of paragraph 1, the exporter, producer, or authorised representative under the exporter's responsibility must indicate in its application the place and date of exportation of the goods to which the Certificate of Origin relates, and state the reasons for its request.
3. The Competent Authority may issue a Certificate of Origin retrospectively only after verifying that the information supplied in the application of exporter, producer, or authorised representative under the exporter's responsibility agrees with that in the corresponding file.
4. A Certificate of Origin issued in accordance with this Article shall indicate whether it was issued retrospectively in the appropriate field as detailed in Annex 3B (Certificate of Origin).
Article 3.23. Duplicate Certificates of Origin
1. In the event of theft, loss or destruction of a Certificate of Origin in paper form, the exporter, producer, or authorised representative under the exporter's responsibility may apply to the Competent Authority that issued it for a duplicate made out on the basis of the export documents in its possession.
2. A Certificate of Origin issued in accordance with this Article shall indicate whether it is a duplicate in the appropriate field as detailed in Annex 3-B (Certificate of Origin).
3. The duplicate, which shall bear the date of issuance of the original Certificate of Origin, shall take effect as from that date.
Article 3.24. Submission of Proof of Origin
Proofs of origin shall be submitted to the Customs Authority of the importing Party in accordance with the procedures applicable in that Party. The Customs Authority may require the import declaration to be accompanied by a statement from the importer to the effect that the goods meet the conditions required for the implementation of this Agreement.
Article 3.25. Validity Period of Certificate of Origin
1. A Certificate of Origin shall be valid for six months from the date of issuance in the exporting Party and shall be submitted within the said period to the Customs Authority of the importing Party.
2. Certificates of Origin submitted to the Customs Authority of the importing Party after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment where the failure to submit these documents by the final date set is due to exceptional circumstances.
3. In other cases of untimely presentation, the Customs Authority of the importing Party may accept Proofs of Origin where the products have been submitted before the said final date.
Article 3.26. Discrepancies and Formal Errors
1. The discovery of slight discrepancies between the statements made in a Proof of Origin and those made in the documents submitted to the Customs Authority for the purposes of carrying out the formalities for importing the goods, shall not ipso facto render the Proof of Origin null and void if it is duly established that these documents correspond to the goods submitted.
2. Obvious formal errors on a Proof of Origin shall not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in the document.
Article 3.27. Record-Keeping Requirement
1. The exporter or producer applying for the issuance of a Proof of Origin shall keep the documents referred to in Articles 3.20.7 and 3.21.3 for at least five years.
2. The Competent Authority in the exporting Party that issued a Certificate of Origin shall keep any document relating to the application procedure referred to in Article 3.21.2 for at least five years.
3. The Customs Authority of the importing Party shall keep the Certificates of Origin and the Origin Declaration or the reference numbers of electronic Certificates of Origin submitted to it for at least five years.
Article 3.28. Verification of Proofs of Origin
1. Subsequent verification of Proofs of Origin shall be carried out at random or whenever the Customs Authority or the Competent Authority of the importing Party have reasonable doubts as to the authenticity of such documents, the originating status of the goods concerned, or the fulfilment of the other requirements of this Chapter.
2. For the purposes of implementing paragraph 1, the Customs Authority of the importing Party shall return the Proofs of Origin, or a copy of these documents, to the Customs Authority or the Competent Authority of the exporting Party giving, where appropriate, the reasons for the request for verification. Any documents and information obtained suggesting that the information given in the Proofs of Origin is incorrect shall be forwarded in support of the request for verification.
3. The verification shall be carried out by the Customs Authority or the Competent Authority of the exporting Party. For this purpose, they shall have the right to request any evidence and to carry out any inspection of the exporter's books or any other check considered appropriate.
4. If the Customs Authority of the importing Party decides to suspend the granting of preferential treatment to the goods concerned while awaiting the results of the verification, release of the goods shall be offered to the importer subject to any precautionary measures considered necessary.
5. The Customs Authority or the Competent Authority requesting the verification shall be informed of the results thereof as soon as possible. These results shall indicate clearly whether the documents are authentic and whether the goods concerned may be considered as goods originating in the exporting Party and fulfil the other requirements of this Chapter.
6. If, in cases of reasonable doubt, there is no reply within six months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the goods, the requesting Customs Authority shall, except in exceptional circumstances, refuse entitlement to the preferences.
7. If the Customs Authority or the Competent Authority of the importing Party is not satisfied with the results provided by the Customs Authority or the Competent Authority of the exporting Party, under exceptional circumstances and for justifiable reasons, the Customs Authority or the Competent Authority of the importing Party may conduct a verification in the exporting Party by means of:
(a) written requests for additional information, documents or explanations, to the Customs Authority or the Competent Authority of the exporting Party, concerning the results of the above verification. Such information shall be provided no later than 90 days from the receipt of such request from the Customs Authority or the Competent Authority of the importing Party; or
(b) a verification visit to the premises of the exporter or producer in the exporting Party. To that purpose:
(i) the Customs Authority or the Competent Authority of the importing Party shall deliver a written notification in advance to the Customs Authority or the Competent Authority of the exporting Party regarding the intention of the importing Party to conduct a visit at the exporter's or producer's premises;
(ii) the exporting Party shall set a date of visit upon the agreement of the exporter or the producer, the importing Party and the exporting Party. The visit shall be conducted no later than 90 days from the receipt of the written notification from the Customs Authority or the Competent Authority of the exporting Party;
(iii) officials from the exporting Party shall assist the officials from the importing Party in their visit and accompany them at the exporter's or producer's premises, unless otherwise agreed; and
(iv) the Customs Authority or the Competent Authority of the importing Party conducting the verification shall provide the Customs Authority or the Competent Authority of the exporting Party with a written determination of whether the goods qualify as originating goods, including findings of fact and the legal basis for the determination no later than 60 days after conducting the visit.
8. Upon a determination that the goods are not originating, preferential treatment can be denied. Otherwise, the goods shall be granted preferential treatment.
9. Each Party shall maintain, in accordance with its law, the confidentiality of any information collected pursuant to this Article, and shall protect that information from any disclosure that could prejudice the competitive position of the persons providing the information.
10. All the information and communications under this Article shall be done in English.
11. This Article shall not preclude the exchange of information or granting of any other assistance as provided for in customs cooperation agreements.
Article 3.29. Third Party Invoicing
1. An importing Party shall not deny a claim for preferential tariff treatment for the sole reason that an invoice was not issued by the exporter or producer of a good, provided that the good meets the requirements in this Chapter.
2. The exporter of the goods shall indicate "third party invoicing" and such information as the number of invoice, if available, in the Certificate of Origin.
Article 3.30. Denial of Preferential Treatment
1. Only for the following specific reasons, the preferential treatment may be refused without verification of the Proofs of Origin:
(a) the requirements on direct transport of Article 3.16 have not been fulfilled;
(b) the importer fails to submit the Proof of Origin to the Customs Authority of the importing Party within the period specified in the importing Party's law;
(c) the issuing authority of the exporting Party or the exporter did not sign the Certificate of Origin.
2. If the Customs Authority of the importing Party denies a claim for preferential tariff treatment, it shall provide the decision in writing to the importer that includes the reasons for the decision.
Article 3.31. Contact Points
Each Party shall, within 30 days of the date of entry into force of this Agreement for that Party, designate one or more Contact Points within its Competent Authority for the implementation of this Chapter and notify the other Party of the contact details of that Contact Point or those Contact Points. Each Party shall promptly notify the other Party of any change to those Contact Points details.
Section C. CONSULTATION AND MODIFICATIONS
Article 3.32. Consultation and Modifications
The Parties shall consult and cooperate as appropriate to:
(a) ensure that this Chapter is applied in an effective and uniform manner; and
(b) discuss necessary amendments to this Chapter, taking into account developments in technology, production processes, and other related matters.
Article 3.33. Subcommittee on Rules of Origin and Customs
1. The Parties hereby establish a Subcommittee on Rules of Origin and Customs comprised of representatives of each Party.
2. The Subcommittee shall meet upon the request of a Party or the Joint Committee to consider any matter arising under this Chapter or Chapter 4 (Customs Procedure and Trade Facilitation).
Article 3.34. Transitional Provisions for Goods In Transit or Storage
The provisions of this Agreement may be applied to goods which comply with the provisions of this Agreement and which on the date of entry into force of this Agreement are either in transit, in the Parties in temporary storage, in customs control, or in free zones, subject to the submission to the Customs Authority of the importing Party, within 12 months of that date, of a Proof of Origin made out retrospectively together with the documents showing that the goods have been transported directly in accordance with Article 3.16.
Article 3.35. Confidentiality
All information related to the application of this Chapter communicated between the Parties shall be treated as confidential. It shall not be disclosed by the Parties' authorities without the express permission of the person or authority providing it.
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 4.1. Definitions
For the purposes of this Chapter, the following definitions shall mean:
Authorized Economic Operator Program (AEO) refers to the program which recognizes an operator involved in the international movement of goods in whatever function that has been approved by the national Customs Authority as complying with the World Customs Organization ("WCO") or equivalent supply chain security standards;
customs law refers to such laws and regulations in force in the customs territories of the Parties, concerning the importation, exportation, and transit of goods, as they relate, inter alia, to customs duties, charges and other taxes or to prohibitions, restrictions and other controls in respect of the movement of goods across national boundaries;
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; and
Article 4.2. General Provisions
1. The Parties shall apply their respective customs law and procedures in a transparent, consistent, fair, and predictable manner in order to facilitate trade and avoid unnecessary procedural obstacles to trade under this Agreement.
2. The Parties shall endeavor to conform their customs procedures, where possible, to the standards and recommended practices of the World Customs Organization.
3. The Customs Authority of each Party shall endeavor to periodically review its customs procedures with a view to their further simplification and development to facilitate bilateral trade.
Article 4.3. Publication and Availability of Information
1. Each Party shall ensure that its laws, regulations, guidelines, procedures, and administrative rulings of general application on customs matters are promptly published, either on the internet or in print form.
2. Each Party shall designate, establish, and maintain one or more inquiry points to address inquiries from interested persons pertaining to customs matters, and shall endeavour to make available publically, through electronic means, information concerning the procedures for making such inquiries.
3. Nothing in this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting methodologies.
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 made otherwise publicly available, as early as possible before their entry into force, so that interested parties have the opportunity to become acquainted with the new or amended laws and regulations.
5. Changes to duty rates or tariff rates, measures that have a relieving effect, measures the effectiveness of which would be undermined as a result of compliance with paragraph 4, measures applied in urgent circumstances, or minor changes to domestic law and legal system are excluded from paragraph 4.
Article 4.4. Risk Management
1. Each Party shall adopt a risk management approach in its customs activities, based on its identified risk of goods, in order to facilitate the clearance of low risk consignments, while focusing its inspection activities on high-risk goods.
Article 4.5. Paperless Communications
1. For the purposes of trade facilitation, the Parties shall endeavor to provide an electronic environment that supports the customs clearance process between their Customs Authorities and their trading entities.
2. The Parties shall exchange views and information on realizing and promoting paperless communications between their respective Customs Authorities and their trading entities.
3. The Customs Authorities of the Parties, in implementing initiatives which provide for the use of paperless communications, shall to the extent practicable, and in a manner consistent with their domestic law and legal systems, take into account the methodologies agreed at the WCO.
Article 4.6. Advance Rulings
1. In accordance with its domestic law, each Party shall issue an advance ruling in a reasonable, time-bound manner to the applicant that has submitted a written request containing all necessary information.
2. For purposes of paragraph 1, a Party shall issue an advance ruling prior to the importation of a good that sets forth the treatment that the Party shall provide to the good at the time of importation with regard to:
(a) the good's tariff classification;
(b) where applicable, the appropriate method or criteria, and the application thereof, to be used for determining the customs value under a particular set of facts; and
(c) the origin of the good.
3. In reference to paragraph 2 (c) of this Article and in the application of this Agreement, an advance ruling on the determination of the origin of the good shall be provided by the Party issuing the Certificate of Origin as set forth in Chapter 3 (Rules of Origin) of this Agreement.
4. A Party shall apply an advance ruling issued by it under paragraph 1 of this Article on the date that the ruling is issued or on a later date specified in the ruling, and it shall remain valid for a reasonable period of time and in accordance with the national procedures on advanced rulings, unless the law, fact, or circumstances supporting that ruling have changed.
5. An advance ruling issued by a Party shall be binding on that Party with respect to the applicant that sought it.
6. A Party may decline to issue an advance ruling if the facts and circumstances forming the basis of the advance ruling are the subject of an investigation or an administrative or judicial review. A Party that declines to issue an advance ruling shall promptly notify, in writing, the person requesting the ruling, setting out the relevant facts and circumstances and the basis for its decision.
7. The importing Party may modify or revoke an advance ruling:
(a) if the ruling was based on an error of fact;
(b) if there is a change in the material facts or circumstances on which the ruling was based;
(c) to conform with a modification of this Chapter; or
(d) to conform with a binding judicial decision or a change in its domestic law.
8. Each Party shall provide written notice to the applicant explaining the Party's decision to revoke or modify the advance ruling issued to the applicant.
Article 4.7. Penalties
1. Each Party shall adopt or maintain measures that allow for the imposition of penalties for violations of the Party's customs law and procedures.
2. Each Party shall ensure that penalties imposed for a breach of its customs law or procedures are imposed only on the person(s) responsible for the breach under its laws.
3. Each Party shall ensure that the penalty imposed by its Customs Authority is dependent on the facts and circumstances of the case and is commensurate with the degree and severity of the breach.
4. Each Party shall ensure that it maintains measures to avoid:
(a) conflicts of interest in the assessment and collection of penalties and duties; and
(b) creating an incentive for the assessment or collection of a penalty that is inconsistent with paragraph 3.
5. Each Party shall ensure that if a penalty is imposed by its Customs Authority for a breach of a customs law or procedures, an explanation in writing is provided to the person upon whom the penalty is imposed specifying the nature of the breach and the law or procedures used for determining the penalty amount.
Article 4.8. Release of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade by:
(a) providing for the release of goods within a period no greater than required upon receipt of the customs declaration and fulfillment of all applicable requirements and procedures in accordance with its customs law;
(b) providing for the advance electronic submission and processing of information and documents in accordance with its domestic law prior to the physical arrival of the goods in order to expedite the release of goods from customs control upon arrival;
(c) allowing goods to be released at the point of arrival without requiring temporary transfer to warehouses or other facilities; and
(d) requiring, in accordance with its domestic law, that the importer be informed if a Party does not promptly release goods, including, to the extent permitted by its law, the reasons why the goods are not released and the agency to which the matter is related.
2. Nothing in this Article requires a Party to release a good if its requirements for release have not been met nor prevents a Party from liquidating a security deposit in accordance with its law.
3. Each Party may allow, to the extent practicable and in accordance with its customs law, goods intended for import to be moved within its territory under customs control from the point of entry into the Party's territory to another customs office in its territory from where the goods are intended to be released, provided the applicable regulatory requirements are met.
Article 4.9. Authorized Economic Operators
In order to facilitate trade and enhance compliance and risk management between them, the Parties shall endeavor to promote the conclusion of a mutual recognition arrangement ("MRA") for their Authorized Economic Operator Programs ("AEO").
Article 4.10. Border Agency Cooperation
Each Party shall ensure that its authorities and agencies responsible for border controls and procedures dealing with the importation, exportation, and transit of goods cooperate with one another and coordinate their activities in order to facilitate trade pursuant to this Chapter.
Article 4.11. Expedited Shipments
1. Each Party, in accordance with its domestic law, shall adopt or maintain customs procedures for the expedited shipment of goods entered through air cargo facilities while maintaining appropriate customs control and selection. These procedures shall:
(a) provide for information necessary to release an express shipment to be submitted and processed before the shipment arrives;
(b) allow a single submission of information covering all goods contained in an express shipment, such as a manifest through, if possible, electronic means (10);
(c) to the extent possible, provide for the release of certain goods with a minimum of documentation;
(d) under normal circumstances, provide for expedited shipments to be released as soon as possible within a period not greater than required, subject to its compliance with its customs law and procedures, and provided that the shipment has arrived; and
(e) endeavor to apply to shipments of any weight or value recognizing that a Party may require formal entry procedures as a condition for release, including declaration and supporting documentation and payment of customs duties, based on the good's weight or value.
Article 4.12. Review and Appeal
1. Each Party shall provide that the importer, exporter or any person to whom it issues a decision on a customs matter has access to:
(a) at least one level of administrative appeal or review of decisions by its Customs Authority higher than or independent (11) of the official or office that issued the decision; or
(b) judicial appeal or review of the decision.
2. Each Party shall ensure that its procedures for appeal and review are carried out in a non-discriminatory and timely manner.
3. Each Party shall ensure that the person referred to in paragraph 1 is notified in writing of the determination or decision in the review or appeal, and the reasons for the determination or decision.
Article 4.13. Customs Cooperation
1. The Customs Authorities of the Parties shall cooperate in order to ensure the correct implementation and operation of the provisions of this Agreement that pertain to customs matters as they relate to, inter alia:
(a) importations or exportations within the framework of this Agreement;
(b) preferential treatment and claims procedures;
(c) verification procedures;
(d) customs valuation and tariff classification of goods; and