Article 3.15. Certificate of Origin
1. A claim that a good should be treated as originating and accepted as eligible for a preferential tariff shall be supported by a Certificate of Origin.
2. The Certificate of Origin shall be completed by the exporter or the producer and shall:
(a) specify that the goods described therein are originating;
(b) be made in respect of one or more goods and may include a variety of goods;
(c) be in a printed format or such other medium including electronic format; and
(d) be completed in English and contain the data elements set out with instructions in Annex 3-C. A model format for a Certificate of Origin is provided in Annex 3-D.
3. Where an exporter in the territory of a Party is not the producer of the good, the exporter may complete and sign a Certificate of Origin on the basis of:
(a) its knowledge that the good qualifies as an originating good; or
(b) a written declaration or statement, such as a Certificate of Origin, that the good qualifies as an originating good, provided by the producer.
4. Nothing in this Article shall be construed to require a producer who is not the exporter of the good to provide a Certificate of Origin, or written declaration or statement that the good qualifies as an originating good.
5. A Certificate of Origin shall be applicable to:
(a) a single importation of one or more goods into a Party's territory; or
(b) multiple importations of the goods described therein that occur within the period of validity of the Certificate of Origin.
6. A Certificate of Origin shall remain valid for at least two years, or for such longer period specified by the laws and regulations of the importing Party, after the date on which the Certificate of Origin was signed.
7. For any originating good that is imported into the territory of a Party on or after the date of entry into force of this Agreement, each Party shall accept a Certificate of Origin that has been completed and signed prior to that date.
Article 3.16. Authorised Bodies
1. Further to Article 3.15, for Australia, a Certificate of Origin may be issued by an authorised body following a written application submitted by an exporter or producer.
2. Australia shall provide that its authorised bodies carry out proper examination of each application for a Certificate of Origin to ensure that:
(a) the goods described therein are originating; and
(b) the data to be contained in the Certificate of Origin corresponds to that in supporting documentary evidence submitted.
3. Australia shall provide that its authorised bodies retain copies of Certificates of Origin and supporting documentary evidence for five years after the date of issue. Such documentation may be maintained in any medium that allows for prompt retrieval, including but not limited to, digital, optical, magnetic or written form.
4. Australia shall provide that an authorised body that has reason to believe that a Certificate of Origin, which it has issued, contains information that is not correct, shall promptly notify in writing the person to whom the Certificate of Origin was issued.
5. Australia shall notify the names, addresses, specimens of the impressions of the official seals of its authorised bodies and other details that the Parties may agree to Korea. Any subsequent change shall be promptly notified.
Article 3.17. Claims for Preferential Tariff Treatment
1. Unless otherwise provided in this Chapter, each Party shall grant preferential tariff treatment to a good imported into its territory from the other Party, provided that:
(a) the importer requests preferential tariff treatment at the time of importation;
(b) the good qualifies as an originating good;
(c) the importer has the Certificate of Origin in its possession at the time the customs import declaration is made, if required by the laws or regulations of the importing Party; and
(d) the importer provides, on request of the importing Partys customs administration, a copy of the Certificate of Origin and such other documentation relating to the importation of the good in accordance with the laws and regulations of the importing Party.
2. An importer should promptly make a corrected customs import declaration in a manner required by the customs administration of the importing Party and pay any duties owing where the importer has reason to believe that a Certificate of Origin on which a claim was based contains information that is not correct.
Article 3.18. Post-importation Claims for Preferential Tariff Treatment
Each Party shall provide that, where a good would have qualified as an originating good when it was imported into the territory of that Party, the importer of the good may, within a period of at least one year, or for such longer period specified by the laws and regulations of the importing Party, after the date on which the good was imported, apply for a refund of any excess duties paid as the result of the good not having been accorded preferential tariff treatment, on presentation to the customs administration of the importing Party:
(a) a Certificate of Origin and, where appropriate, other evidence that the good qualifies as an originating good; and
(b) such other documentation in relation to the importation as the customs administration may require to satisfactorily evidence the tariff preference claimed.
Article 3.19. Waiver of Certificate of Origin
Each Party shall provide that a Certificate of Origin shall not be required for:
(a) an importation of a good whose customs value does not exceed 1,000 Australian dollars for Australia or 1,000 US dollars or its equivalent amount for Korea, or such higher amount as each Party may establish; or
(b) an importation of a good for which the importing Party has waived the requirement for a Certificate of Origin,
provided that the importation does not form part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding the certification requirements of Articles 3.15 and 3.17.
Article 3.20. Discrepancies and Variations
1. Where the origin of the good is not in doubt, minor transcription errors or discrepancies in documentation shall not ipso facto invalidate the Certificate of Origin, if it is duly established that it does correspond to the goods submitted.
2. Variations in the format of the Certificate of Origin from the model format set out in Annex 3-D shall not invalidate the Certificate of Origin, provided that the Certificate of Origin contains the data elements set out in Annex 3-C.
Article 3.21. Obligations Regarding Exportations
1. Each Party shall provide that an exporter or a producer that has completed and signed a Certificate of Origin, shall, on request, provide a copy of the Certificate of Origin and such otherdocuments to its customs administration, if required by the Party's laws and regulations.
2. Each Party shall provide that an exporter or producer that has completed and signed, or applied for, a Certificate of Origin, and that has reason to believe that the Certificate of Origin contains information that is not correct, shall promptly notify in writing all persons to whom the Certificate of Origin was given by the exporter or producer of any change that could affect the accuracy or validity of the Certificate of Origin.
3. Each Party shall, to the extent permitted by its laws and regulations, maintain penalties for issuing false Certificates of Origin or documentation related to the origin of a good submitted to a customs administration of the importing or exporting Party.
Article 3.22. Record Keeping Requirements
1. Each Party shall provide that:(a) an exporter or a producer that completes and signs, or applies for a Certificate of Origin shall maintain, for five years after the date on which the Certificate of Origin was signed, all records necessary to demonstrate that the good for which the producer or exporter provided the Certificate of Origin was an originating good; and
(b) an importer claiming preferential tariff treatment shall maintain, for five years after the date of importation of the good, such documentation, including a copy of the Certificate of Origin, as the Party may require relating to the importation of the good.
2. Each Party shall provide that an importer, exporter or producer may choose to maintain the records specified in paragraph 1 in any medium that allows for prompt retrieval, including, but not limited to, digital, electronic, optical, magnetic or written form.
Article 3.23. Origin Verification
1. For the purposes of determining whether a good imported into a Party from the other Party qualifies as an originating good, the customs administration of the importing Party may conduct a verification action by means of:
(a) written requests for information from the importer;
(b) where the Certificate of Origin was issued by an authorised body, requests to that authorised body to verify the validity of the Certificate of Origin;
(c) written requests for information from the exporter or producer of the exporting Party;
(d) requests that the customs administration of the exporting Party assist in verifying the origin of the good; or
(e) verification visits to the premises of the exporter or the producer in the territory of the other Party to observe the facilities and the production processes of the good and to review the records referring to origin, including accounting records.
2. For the purposes of paragraphs 1(a), 1(b) and 1(c), the customs administration shall allow the importer, exporter, producer or authorised body a period of 30 days from the date of the written request to respond. During this period the importer, exporter, producer or authorised body may request, in writing, an extension not exceeding 30 days.
3. For the purposes of this Article and Article 3.24, all the information requested by the importing Party and responded to by the exporting Party shall be communicated in English.
4. The customs administration of the importing Party shall complete any action under paragraph 1 to verify eligibility for preferential tariff treatment within the period specified in the laws, regulations or administrative procedures of the importing Party. Upon the completion of the verification action, the customs administration shall provide written advice to the importer, exporter or producer of its decision as well as the legal basis and findings of fact on which the decision was made. Where a verification visit was undertaken, the customs administration shall also provide advice of the decision to the exporting Party.
Article 3.24. Verification Visit
1. Prior to conducting a verification visit under Article 3.23.1(e), the customs administration of the importing Party shall:
(a) make a written request to the exporter or producer to conduct a verification visit of their premises; and
(b) obtain the written consent of the exporter or producer whose premises are to be visited.
2. An exporter or producer should provide its written consent to a proposed verification visit within 30 days from the receipt of notification in accordance with paragraph 1(a).
3. The written request referred to in paragraph 1(a) shall include: (a) the identity of the customs administration issuing the request;
(b) the name of the exporter of the good in the exporting Party to whom the request is addressed;
(c) the date the written request is made;
(d) the proposed date and place of the visit;
(e) the objective and scope of the proposed visit, including specific reference to the good that is the subject of the verification referred to in the Certificate of Origin; and
(f) the names and titles of the officials of the customs administration of the importing Party who will participate in the visit.
4. The customs administration of the importing Party shall notify the customs administration of the exporting Party when it requests a verification visit in accordance with this Article.
5. Officials of the customs administration of the exporting Party may participate in the verification visit as observers.
Article 3.25. Denial of Preferential Tariff Treatment
1. The importing Party may deny a claim for preferential tariff treatment or recover unpaid duties in accordance with its laws and regulations, where:
(a) the good does not meet the requirements of this Chapter;
(b) the importer, exporter or producer of the good fails or has failed to comply with any of the relevant requirements for obtaining preferential tariff treatment, or to maintain records or documentation in accordance with Article 3.22;
(c) the importer, exporter or producer fails to provide information that the Party requested in accordance with Article 3.23.2 demonstrating that the good is an originating good; or
(d) after receipt of a written notification for a verification visit in accordance with Article 3.24.1, the exporter or producer fails to provide its written consent in accordance with Article 3.24.2 or to provide access to records, production processes or facilities referred to in Article 3.23.1(e) demonstrating that the good is an originating good.
2. The importing Party may suspend or deny, in accordance with its laws and regulations, the application of preferential tariff treatment to a good that is the subject of an origin verification action under Article 3.23 for the duration of that action, or any part thereof.
3. When the importing Party determines that a good is not eligible for preferential tariff treatment, the right of suspension or denial shall extend to any subsequent import of goods that are the same in all respects relevant to the particular rule of origin, until it has been demonstrated that those goods comply with the provisions of this Chapter.
Article 3.26. Non-party Invoices
The customs administration of the importing Party shall not reject a Certificate of Origin only for the reason that the invoice was issued in the territory of a non-Party.
Article 3.27. Confidentiality
For greater certainty, Article 4.11 (Confidentiality) shall apply to this Chapter.
Article 3.28. Penalties
Each Party shall maintain measures imposing criminal, civil or administrative penalties for violations of its laws and regulations relating to this Chapter.
Article 3.29. Appeal Procedures
The rights of review and appeal in matters relating to the determination of origin under this Chapter shall be granted, in accordance with Article 4.8 (Appeal Procedures), to an importer, exporter or producer of a good.
Article 3.30. Definitions
For the purposes of this Chapter:
adjusted value means the value of a good calculated in accordance with Article 3.3.1;
aquaculture means the farming of aquatic organisms, including fish, molluscs, crustaceans, other aquatic invertebrates and aquatic plants, from seedstock such as eggs, fry, fingerlings and larvae, by intervention in the rearing or growth processes to enhance production, such as regular stocking, feeding, or protection from predators;
CIF value means the value of a good at the time of importation, inclusive of freight, insurance, packing, and all other costs incurred in transporting the good to the importation port;
exporter means a person located in the territory of a Party from where a good is exported by that person;
FOB means the free-on-board value of a good, inclusive of the cost of transport and insurance to the port or site of final shipment abroad;
fungible goods or materials means goods or materials that are identical or interchangeable as a result of being of the same kind and commercial quality, possessing essentially the same technical and physical characteristics;
Generally Accepted Accounting Principles means recognised consensus or substantial authoritative support given 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 for general application, as well as detailed standards, practices and procedures;
good means any merchandise, product, article or material;
material means a good that is used or consumed in the production of another good, and physically incorporated into or classified with that good;
non-originating good or non-originating material means a good or material that does not qualify as originating under this Chapter;
producer means a person who engages in the production of a good in the territory of a Party;
production means any kind of working or processing, including growing, mining, harvesting, fishing, breeding, raising, trapping, hunting, manufacturing, assembling or disassembling a good; and
value means the value of a good or material for the purposes of calculating customs duties or for the purposes of applying this Chapter.
Chapter 4. Customs Administration and Trade Facilitation
Article 4.1. Objectives
The objectives of this Chapter are to:
(a) simplify customs procedures of the Parties;
(b) ensure predictability, consistency and transparency in the application of customs laws, regulations and administrative procedures of the Parties;
(c) ensure the efficient and expeditious clearance of goods; (d) facilitate trade between the Parties; and
(e) promote cooperation between the customs administrations, within the scope of this Chapter.
Article 4.2. Transparency
1. Each Party shall ensure that its customs procedures and practices are predictable, consistent and transparent.
2. Further to Article 19.1 (Publication), each Party shall publish on the Internet all customs laws and regulations and any administrative procedures relevant to importation or exportation which it applies or enforces.
3. Each Party shall establish or maintain one or more enquiry points for responding to enquiries from interested persons regarding customs matters covered by this Agreement, and provide details of such enquiry points to the other Party. Information concerning the procedures for making such enquiries shall be easily accessible to the public.
Article 4.3. Harmonisation of Documents and Data Elements
1. Each Party shall endeavour to pursue the harmonisation of documentation used in trade and data elements in accordance with international standards.
2. Each Party shall endeavour to use international standards, including the development of a set of common data elements and processes in accordance with the World Customs Organization (hereinafter referred to as "WCO") Customs Data Model and related WCO recommendations and guidelines.
3. Each Party shall work towards the implementation of initiatives that harmonise the data requirements of its respective agencies associated with the importation, exportation or transit of goods, and minimise the submission of trade data, with the objective of allowing importers and exporters to present all required data to one agency.
Article 4.4. Use of Automated Systems In the Paperless Trading Environment
1. Each customs administration shall apply information technology to support customs operations where it is cost-effective and efficient, particularly in the paperless trading context, taking into account developments in this area within the WCO.
2. Each customs administration shall endeavour to use information technology that expedites procedures for the release of goods, including the submission and processing of information and data before the arrival of the shipment of those goods, as well as electronic or automated systems for risk management and targeting.
Article 4.5. Risk Management
In administering customs procedures, each customs administration shall focus resources on shipments of high-risk goods and facilitate the clearance, including release, of low-risk goods.
Article 4.6. Release of Goods
1. Each Party shall adopt or maintain simplified customs procedures for the efficient release of goods in order to facilitate trade between the Parties.
2. In accordance with paragraph 1, each Party shall ensure that its customs administration and other competent authorities adopt or maintain procedures that:
(a) provide for the release of goods within a period no greater than that required to ensure compliance with its laws and regulations;
(b) provide for advance electronic submission and processing of information before the physical arrival of goods to enable the release of those goods on arrival;
(c) to the extent possible, allow goods to be released at the point of arrival, without temporary transfer to warehouses or other facilities; and
(d) under circumstances specified in the importing Party's laws, regulations or administrative procedures, provide that no customs duties or taxes will be assessed on, nor will formal entry documents be required for, shipments of eligible goods valued at or less than a specified amount.
3. Each Party shall endeavour to adopt or maintain a system under which goods in need of urgent clearance can obtain customs clearance 24 hours a day including holidays.
Article 4.7. Advance Rulings
1. Each Party shall issue, through its customs administration, prior to the importation of a good into its territory, a written advance ruling at the written request of an importer in its territory, or an exporter or producer in the territory of the other Party with regard to:
(a) tariff classification;
(b) the application of customs valuation criteria for a particular case, in accordance with the provisions of the Customs Valuation Agreement;
(c) whether a good is originating in accordance with Chapter 3 (Rules of Origin and Origin Procedures); and
(d) such other matters as the Parties may agree.
2. Each Party shall adopt or maintain procedures for issuing written advance rulings which:
(a) include a detailed description of the information required to process a request for an advance ruling;
(b) allow its customs administration, at any time during the course of an evaluation of an application for an advance ruling, to request that the applicant provide additional information, which may include a sample of the goods, necessary to evaluate the tequest;
(c) ensure that an advance ruling be based on the facts and circumstances presented by the applicant and any other relevant information in the possession of the decision- maker;
(d) provide that an advance ruling be issued to the applicant expeditiously, and within a period specified in its laws, regulations or administrative procedures, after the receipt of all necessary information; and
(e) provide that its customs administration provide a written explanation of the reasons for the advance ruling.
3. 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 administrative or judicial review. A Party that, in accordance with this paragraph, declines to issue an advance ruling, shall promptly notify the requestor in writing, setting forth the relevant facts and the basis for its decision to decline to issue the advance ruling.
4. Each Party shall provide that advance rulings shall be in force from the date they are issued, or another date specified in the ruling, provided that the facts or circumstances on which the ruling is based remain unchanged. Subject to paragraphs 1 and 5, an advance ruling shall remain in force for no less than five years, or such other period as specified in the laws, regulations or administrative rulings of the issuing Party.
5. The issuing Party may modify or revoke an advance ruling after the Party notifies the requestor, and where, consistent with this Agreement:
(a) there is a change in its laws and regulations;
(b) incorrect information was provided or relevant information was withheld; (c) there is a change in a material fact; or