(a) suspend the further reduction of any rate of customs duty on the originating good provided for in this Chapter; or
(b) increase the rate of customs duty on the originating good to a level not to exceed the lesser of:
(i) the most-favoured-nation applied rate of customs duty in effect at the time when the bilateral safeguard measure set out in this paragraph is taken; and
(ii) the most-favoured-nation applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement.
2. Each Country shall not apply bilateral safeguard measures on an originating good imported up to the limit of quota quantities granted under tariff rate quotas applied in accordance with its Schedule in Annex 1.
3. (a) A Country may take a bilateral safeguard measure only after an investigation has been carried out by the competent authorities of that Country in accordance with the same procedures as those provided for in Article 3 and paragraph 2 of Article 4 of the Agreement on Safeguards in Annex 1A to the WTO Agreement, as may be amended (hereinafter referred to in this Chapter as “the Agreement on Safeguards”).
(b) The investigation referred to in subparagraph (a) shall in all cases be completed within one year following its date of initiation.
4. The following conditions and limitations shall apply with regard to a bilateral safeguard measure:
(a) A Country shall immediately deliver a written notice to the other Country upon:
(i) initiating an investigation referred to in subparagraph 3(a) of this Article relating to serious injury, or threat thereof, and the reasons for it; and
(ii) taking a decision to apply or extend a bilateral safeguard measure.
(b) The Country making the written notice referred to in subparagraph (a) shall provide the other Country with all pertinent information, which shall include:
(i) in the written notice referred to in subparagraph (a)(i), the reason for the initiation of the investigation, a precise description of an originating good subject to the investigation and its subheading or a more detailed level of the Harmonized System, the period subject to the investigation and the date of initiation of the investigation; and
(ii) in the written notice referred to in subparagraph (a)(ii), evidence of serious injury or threat thereof caused by the increased imports of the originating good, a precise description of the originating good subject to the proposed bilateral safeguard measure and its subheading or a more detailed level of the Harmonized System, a precise description of the bilateral safeguard measure, the proposed date of its introduction and its expected duration. (c) A Country proposing to apply or extend a bilateral safeguard measure shall provide adequate opportunity for prior consultations with the other Country with a view to reviewing the information arising from the investigation referred to in subparagraph 3(a) of this Article, exchanging views on the bilateral safeguard measure and reaching an agreement on compensation set out in paragraph 5 of this Article.
(d) No bilateral safeguard measure shall be maintained except to the extent and for such time as may be necessary to prevent or remedy serious injury and to facilitate adjustment, provided that such time shall not exceed a period of four years. However, in very exceptional circumstances, a bilateral safeguard measure may be maintained for up to a total maximum period of five years. In order to facilitate adjustment in a situation where the expected duration of a bilateral safeguard measure is over one year, the Country maintaining the bilateral safeguard measure shall progressively liberalise the bilateral safeguard measure at regular intervals during the period of application.
(e) No bilateral safeguard measure shall be applied
again to the import of a particular originating
good which has been subject to such a bilateral
safeguard measure, for a period of time equal to
the duration of the previous bilateral safeguard
measure or one year, whichever is longer.
(f) Upon the termination of a bilateral safeguard
measure, the rate of customs duty shall be the
rate which would have been in effect but for the
bilateral safeguard measure.
5. (a) A Country proposing to apply or extend a bilateral safeguard measure shall provide to the other Country mutually agreed adequate means of trade compensation in the form of concessions of customs duties whose levels are substantially equivalent to the value of the additional customs duties expected to result from the bilateral safeguard measure.
(b) If the Countries are unable to agree on the compensation within 30 days after the commencement of the consultation pursuant to subparagraph 4(c) of this Article, the Country against whose originating good the bilateral safeguard measure is taken shall be free to suspend the application of concessions of customs duties under this Agreement, which are substantially equivalent to the bilateral safeguard measure.
(c) The right of suspension provided for in subparagraph (b) shall not be exercised for the first 18 months that a bilateral safeguard measure is in effect, provided that the bilateral safeguard measure has been taken as a result of an absolute increase in imports and that such a bilateral safeguard measure conforms to the provisions of this Article. The Country exercising the right of suspension may suspend the application of concessions of customs duties only for the minimum period necessary to achieve the substantially equivalent effects and only while the bilateral safeguard measure is maintained.
6. Nothing in this Chapter shall prevent a Country from applying safeguard measures to an originating good in accordance with:
(a) Article XIX of the GATT 1994 and the Agreement on Safeguards; or
(b) Article 5 of the Agreement on Agriculture.
7. Each Country shall ensure the consistent, impartial and reasonable administration of its laws and regulations relating to the bilateral safeguard measure.
8. Each Country shall adopt or maintain equitable, timely, transparent and effective procedures relating to bilateral safeguard measure.
9. (a) In critical circumstances, where delay would cause damage which it would be difficult to repair, a Country may take a provisional bilateral safeguard measure, which shall take the form of the measure set out in subparagraph 1(a) or (b) of this Article pursuant to a preliminary determination that there is clear evidence that increased imports of an originating good have caused or are threatening to cause serious injury to a domestic industry.
(b) The Country shall deliver a written notice to the other Country prior to applying a provisional bilateral safeguard measure. Consultations between the Countries on the application of the provisional bilateral safeguard measure shall be initiated immediately after the provisional bilateral safeguard measure is taken.
(c) The duration of the provisional bilateral safeguard measure shall not exceed 200 days. During that period, the pertinent requirements of paragraph 3 of this Article shall be met. The duration of the provisional bilateral safeguard measure shall be counted as a part of the period referred to in subparagraph 4(d) of this Article.
(d) Paragraph 2, subparagraph 4(f) and paragraphs 7 and 8 of this Article shall be applied mutatis mutandis to the provisional bilateral safeguard measure. The customs duty imposed as a result of the provisional bilateral safeguard measure shall be refunded if the subsequent investigation referred to in subparagraph 3(a) of this Article does not determine that increased imports of the originating good have caused or threatened to cause serious injury to a domestic industry.
10. Written notice referred to in subparagraph 4(a) and
subparagraph 9(b) of this Article and any other
communication between the Countries shall be done in the
English language.
11. The Countries shall review the provisions of this
Article, if necessary, after 10 years of the date of entry
into force of this Agreement.
Article 24. Restrictions to Safeguard the Balance of Payments
1. Nothing in this Chapter shall be construed to prevent a Country from taking any measure for balance-of-payments purposes. A Country taking such measure shall do so in accordance with the conditions established under Article XII and Section B of Article XVIII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement.
2. Nothing in this Chapter shall preclude the use by a Country of exchange controls or exchange restrictions in accordance with the Articles of Agreement of the International Monetary Fund, as may be amended.
Article 25. Sub-Committee on Trade In Goods
1. For the purposes of the effective implementation and
operation of this Chapter, the functions of the Sub-
Committee on Trade in Goods (hereinafter referred to in
this Article as “the Sub-Committee”) established in
accordance with Article 14 shall be:
(a) reviewing and monitoring the implementation and
operation of this Chapter;
(b) discussing any issues related to this Chapter;
(c) reporting the findings and the outcome of discussions of the Sub-Committee to the Joint Committee; and
(d) carrying out other functions as may be delegated
by the Joint Committee in accordance with Article
13.
2. The Sub-Committee shall meet at such venues and times
as may be agreed by the Countries.
3. The Sub-Committee shall be:
(a) composed of representatives of the Governments;
and
(b) co-chaired by officials of the Governments.
Article 26. Co-operation In the Field of Automotive Industry
The Countries shall co-operate, with the participation of their respective automotive industries, to further enhance competitiveness of the automotive industry in Malaysia.
Chapter 3. Rules of Origin
Article 27. Definitions
For the purposes of this Chapter:
(a) the term “competent governmental authority” means
the authority of each Country that is responsible
for the issuing of the certificate of origin or
for the designation of the certification entities
or bodies. In the case of Japan, the Ministry of
Economy, Trade and Industry, and in the case of
Malaysia, the Ministry of International Trade and
Industry;
(b) the term “customs authority” means the authority that, according to the legislation of each Country or a third State, is responsible for the administration and enforcement of its customs laws and regulations. In the case of Japan, the Ministry of Finance, and in the case of Malaysia, the Royal Malaysian Customs of the Ministry of Finance;
(c) the term “exporter” means a person located in the
territory of an exporting Country who exports a
good from the territory of the exporting Country;
(d) the terms “factory ships of the Country” and
“vessels of the Country” respectively mean
factory ships and vessels:
(i) which are registered in the Country;
(ii) which sail under the flag of the Country;
(iii) which are owned to an extent of at least 51
percent by nationals of the Country, or by a
juridical person with its head office in the
territory of the Country, of which the
representatives, chairman of the board of
directors, and the majority of the members
of such board are nationals of the Country,
and of which at least 51 percent of the
equity interest is owned by nationals or
juridical persons of the Country; and
(iv) of which at least 75 percent of the total of
the master, officers and crew are nationals
of the Countries or third States which are
member countries of the ASEAN;
(e) the term “fungible originating goods of a
Country” or “fungible originating materials of a
Country” respectively means originating goods or
materials of a Country that are interchangeable
for commercial purposes, whose properties are
essentially identical;
(f) the term “Generally Accepted Accounting Principles” means the recognised consensus or substantial authoritative support within a Country at a particular time as to which economic resources and obligations should be recorded as assets and liabilities, which changes in assets and liabilities should be recorded, how the assets and liabilities and changes in them should be measured, what information should be disclosed and how it should be disclosed, and which financial statements should be prepared. These standards may be broad guidelines of general application as well as detailed practices and procedures;
(g) the term “importer” means a person who imports a good into the territory of the importing Country; (h) the term “indirect material” means a good used in the production, testing or inspection of another good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of another good, including: (i) fuel and energy; (ii) tools, dies and moulds;
(iii) spare parts and goods used in the maintenance of equipment and buildings;
(iv) lubricants, greases, compounding materials and other goods used in production or used to operate equipment and buildings;
(v) gloves, glasses, footwear, clothing, safety equipment and supplies;
(vi) equipment, devices and supplies used for testing or inspecting the goods;
(vii) catalysts and solvents; and
(viii) any other goods that are not incorporated into the good but whose use in the production of the good can reasonably be demonstrated to be a part of that production;
(i) the term “material” means a good that is used in the production of another good;
(j) the term “originating material of a Country” means an originating good of a Country which is used in the production of another good in the territory of the Country, including that which is considered as an originating material of the Country pursuant to paragraph 1 of Article 29;
(k) the term “packing materials and containers for shipment” means goods that are used to protect a good during transportation, other than packaging materials and containers for retail sale referred to in Article 37;
(l) the term “preferential tariff treatment” means the rate of customs duties applicable to an originating good of the exporting Country in accordance with paragraph 1 of Article 19; and
(m) the term “production” means methods of obtaining goods including manufacturing, assembling, processing, raising, growing, breeding, mining, extracting, harvesting, fishing, trapping, gathering, collecting, hunting and capturing.
Article 28. Originating Goods
1. Except as otherwise provided for in this Chapter, a good shall qualify as an originating good of a Country where:
(a) the good is wholly obtained or produced entirely in the territory of the Country, as defined in paragraph 2 of this Article;
(b) the good is produced entirely in the territory of the Country exclusively from originating materials of the Country; or
(c) the good satisfies the product specific rules set out in Annex 2, as well as all other applicable requirements of this Chapter, when the good is produced entirely in the territory of the Country using non-originating materials.
2. For the purposes of subparagraph 1(a) of this Article, the following goods shall be considered as being wholly obtained or produced entirely in the territory of a Country:
(a) live animals born and raised in the territory of the Country;
(b) animals obtained by hunting, trapping, fishing, gathering or capturing in the territory of the Country;
(c) goods obtained from live animals in the territory of the Country;
(d) plants and plant products harvested, picked or gathered in the territory of the Country;
(e) minerals and other naturally occurring substances, not included in subparagraphs (a) through (d), extracted or taken in the territory of the Country;
(f) goods of sea-fishing and other goods taken by vessels of the Country from the sea outside the territorial sea of a Country;
(g) goods produced on board factory ships of the Country outside the territorial sea of the Country from the goods referred to in subparagraph (f);
(h) goods taken from the seabed or subsoil beneath
the seabed outside the territorial sea of the
Country, provided that the Country has rights to
exploit such seabed or subsoil in accordance with
the provisions of the United Nations Convention
on the Law of the Sea;
(i) articles collected in the territory of the
Country which can no longer perform their
original purpose in the territory of the Country
nor are capable of being restored or repaired and
which are fit only for disposal or for the
recovery of parts or raw materials;
(j) scrap and waste derived from manufacturing or
processing operations or from consumption in the
territory of the Country and fit only for
disposal or for the recovery of raw materials;
(k) parts or raw materials recovered in the territory
of the Country from articles which can no longer
perform their original purpose nor are capable of
being restored or repaired; and
(l) goods obtained or produced in the territory of
the Country exclusively from the goods referred
to in subparagraphs (a) through (k).
3. For the purposes of subparagraph 1(c) of this Article,
the product specific rules set out in Annex 2 requiring
that the materials used undergo a change in tariff
classification or a specific manufacturing or processing
operation shall apply only to non-originating materials.
4. (a) For the purposes of subparagraph 1(c) of this
Article, the product specific rules set out in
Annex 2 using the value-added method require that
the qualifying value content of a good,
calculated in accordance with subparagraph (b) of
this Article, is not less than the percentage
specified by the rule for the good.
(b) For the purposes of calculating the qualifying
value content of a good, the following formula
shall be applied:
F.O.B. – V.N.M.
Q.V.C. = --------------- x 100
F.O.B.
Microsoft Word - content.doc
Where:
Q.V.C. is the qualifying value content of a
good, expressed as a percentage;
F.O.B. is, except as provided for in
paragraph 5 of this Article, the free-on-board
value of a good payable by the buyer of the good
to the seller of the good, regardless of the mode
of shipment, not including any internal excise
taxes reduced, exempted, or repaid when the good
is exported; and
V.N.M. is the value of non-originating
materials used in the production of a good.
5. F.O.B. referred to in subparagraph 4(b) of this
Article shall be the value:
(a) adjusted to the first ascertainable price paid
for the good from the buyer to the producer of
the good, if there is free-on-board value of a
good, but it is unknown and cannot be
ascertained; or
(b) determined in accordance with Articles 1 through
8 of the Agreement on Customs Valuation, if there
is no free-on-board value of the good.
6. For the purposes of calculating the qualifying value
content of a good under subparagraph 4(b) of this Article,
the value of a non-originating material used in the
production of the good in the territory of a Country:
(a) shall be determined in accordance with the
Agreement on Customs Valuation, and shall include
freight, insurance where appropriate, packing and
all the other costs incurred in transporting the
material to the importation port in the territory
of the Country where the producer of the good is
located; or
(b) if such value is unknown and cannot be
ascertained, shall be the first ascertainable
price paid for the material in the territory of
the Country, but may exclude all the costs
incurred in the territory of the Country in
transporting the material from the warehouse of
the supplier of the material to the place where
the producer is located such as freight,
insurance and packing as well as any other known
and ascertainable cost incurred in the territory
of the Country.
7. For the purposes of calculating the qualifying value content of a good under subparagraph 4(b) of this Article in determining whether the good qualifies as an originating good of a Country, V.N.M. of the good shall not include the value of non-originating materials used in the production of originating materials of the Country which are used in the production of the good.
8. For the purposes of subparagraph 5(b) or 6(a) of this Article, in applying the Agreement on Customs Valuation to determine the value of a good or non-originating material, the Agreement on Customs Valuation shall apply mutatis mutandis to domestic transactions or to the cases where there is no transaction of the good or non-originating material.
Article 29. Accumulation
1. For the purposes of determining whether a good qualifies as an originating good of a Country, an originating good of the other Country which is used as a material in the production of the good in the territory of the former Country may be considered as an originating material of the former Country.
2. For the purposes of calculating the qualifying value content of a good under subparagraph 4(b) of Article 28 in determining whether the good qualifies as an originating good of a Country, the value of a non-originating material produced in the territory of either Country and to be used in the production of the good may be limited to the value of non-originating materials used in the production of such non-originating material, provided that the good qualifies as an originating good of that Country under subparagraph 1(c) of Article 28.
Article 30. De Minimis
For the application of the product specific rules set out in Annex 2, non-originating materials used in the production of a good that do not satisfy an applicable rule for the good shall be disregarded, provided that the totality of such materials does not exceed specific percentages in value, weight or volume of the good and such percentages are set out in the product specific rule for the good.
Article 31. Non-qualifying Operations
A good shall not be considered to satisfy the requirement of change in tariff classification or specific manufacturing or processing operation set out in Annex 2 solely by reason of:
(a) operations to ensure the preservation of products in good condition during transport and storage (such as drying, freezing, keeping in brine) and other similar operations;
(b) changes of packaging and breaking up and assembly of packages;
(c) disassembly;
(d) placing in bottles, cases, boxes and other simple packaging operations;
(e) collection of parts and components classified as a good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized System;
(f) mere making-up of sets of articles; or
(g) any combination of operations referred to in subparagraphs (a) through (f).
Article 32. Consignment Criteria
1. An originating good of the other Country shall be deemed to meet the consignment criteria when it is:
(a) transported directly from the territory of the other Country; or
(b) transported through third States for the purpose of transit or temporary storage in warehouses in such third States, provided that it does not undergo operations other than unloading, reloading or any other operation to preserve it in good condition.
2. If the originating good of the other Country does not meet the consignment criteria referred to in paragraph 1 of this Article, that good shall not be considered as the originating good of the other Country.
Article 33. Unassembled or Disassembled Goods
1. Where a good satisfies the requirements of the relevant provisions of Articles 28 through 31 and is imported into the territory of a Country from the territory of the other Country in a disassembled form but is classified as an assembled good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized System, such a good shall be considered as an originating good of the other Country.
2. A good assembled in the territory of a Country from unassembled or disassembled materials, which were imported into the territory of the Country and classified as an assembled good pursuant to Rule 2(a) of the General Rules for the Interpretation of the Harmonized System, shall be considered as an originating good of the Country, provided that the good would have satisfied the applicable requirements of the relevant provisions of Articles 28 through 31 had each of the non-originating materials among the unassembled or disassembled materials been imported into the territory of the Country separately and not as an unassembled or disassembled form.
Article 34. Fungible Goods and Materials
1. For the purposes of determining whether a good qualifies as an originating good of a Country, where fungible originating materials of the Country and fungible non-originating materials that are commingled in an inventory are used in the production of the good, the origin of the materials may be determined pursuant to an inventory management method under the Generally Accepted Accounting Principles in the territory of the Country.
2. Where fungible originating goods of a Country and fungible non-originating goods are commingled in an inventory and, prior to exportation do not undergo any production process or any operation in the territory of the Country where they were commingled other than unloading, reloading or any other operation to preserve them in good condition, the origin of the good may be determined pursuant to an inventory management method under the Generally Accepted Accounting Principles in the territory of the Country.
Article 35. Indirect Materials
Indirect materials shall be, without regard to where they are produced, considered to be originating materials of a Country where a good is produced.
Article 36. Accessories, Spare Parts and Tools
1. In determining whether all the non-originating materials used in the production of a good undergo the applicable change in tariff classification or a specific manufacturing or processing operation set out in Annex 2, accessories, spare parts or tools delivered with the good that form part of the good's standard accessories, spare parts or tools, shall be disregarded, provided that:
(a) the accessories, spare parts or tools are not invoiced separately from the good, without regard of whether they are separately described in the invoice; and
(b) the quantities and value of the accessories, spare parts or tools are customary for the good.
2. If the good is subject to a qualifying value content requirement, the value of the accessories, spare parts or tools shall be taken into account as the value of originating materials of a Country where the good is produced or non-originating materials, as the case may be, in calculating the qualifying value content of the good.
Article 37. Packaging Materials and Containers for Retail Sale
1. In determining whether all the non-originating materials used in the production of a good undergo the applicable change in tariff classification or a specific manufacturing or processing operation set out in Annex 2, packaging materials and containers for retail sale, which are classified with the good pursuant to Rule 5 of the General Rules for the Interpretation of the Harmonized System, shall be disregarded.
2. If the good is subject to a qualifying value content requirement, the value of such packaging materials and containers for retail sale shall be taken into account as the value of originating materials of a Country where the good is produced or non-originating materials, as the case may be, in calculating the qualifying value content of the good.
Article 38. Packing Materials and Containers for Shipment
Packing materials and containers for shipment shall be:
(a) disregarded in determining whether all the non- originating materials used in the production of a good undergo the applicable change in tariff classification or a specific manufacturing or processing operation set out in Annex 2; and
(b) without regard to where they are produced, considered to be originating materials of a Country where the good is produced, in calculating the qualifying value content of the good.
Article 39. Claim for Preferential Tariff Treatment
1. The importing Country shall require a certificate oforigin for an originating good of the exporting Country from importers who claim the preferential tariff treatment for the good.
2. Notwithstanding paragraph 1 of this Article, the importing Country shall not require a certificate of origin from importers for:
(a) an importation of a consignment of originating goods of the exporting Country whose aggregate customs value does not exceed 1000 United States dollars or its equivalent amount in the Country’s currency, or such higher amount as it may establish; or
(b) an importation of an originating good of the exporting Country, for which the importing Country has waived the requirement for a certification of origin.
3. Where an originating good of the exporting Country is imported through third States, the importing Country may require importers, who claim the preferential tariff treatment for the good, to submit:
(a) a copy of through bill of lading; or
(b) a certificate or any other information given by the customs authorities of such third States or other relevant entities, which evidences that it has not undergone operations other than unloading, reloading or any other operation to preserve it in good condition in those third States.
Article 40. Certificate of Origin
1. The certificate of origin referred to in paragraph 1 of Article 39 shall be issued by the competent governmental authority of the exporting Country on request having been made in writing by the exporter or its authorised agent. Such certificate of origin shall include minimum data specified in Annex 3.
2. For the purposes of this Article, the competent governmental authority of the exporting Country may designate other entities or bodies to be responsible for the issuance of the certificate of origin, under the authorisation given in accordance with the applicable laws and regulations of the exporting Country.
3. Where the competent governmental authority of the exporting Country designates other entities or bodies to carry out the issuance of the certificate of origin, the exporting Country shall notify in writing the other Country of its designees.
4. For the purposes of this Chapter, upon the entry into force of this Agreement, the Countries shall establish a format of the certificate of origin in the English language in the Operational Procedures referred to in Article 50.
5. The certificate of origin shall be completed in the English language.
6. The issued certificate of origin shall be applicable to a single importation of an originating good of the exporting Country into the territory of the importing Country and be valid for 12 months from the date of issuance.
7. Where the exporter is not the producer of a good, the exporter may request a certificate of origin on the basis of:
(a) a declaration provided by the exporter to the competent governmental authority or its designees based on the information provided by the producer of the good to that exporter; or
(b) a declaration voluntarily provided by the producer of the good directly to the competent governmental authority or its designees by the request of the exporter.
8. The certificate of origin shall be issued only after the exporter who requests a certificate of origin, or the producer of a good in the territory of the exporting Country referred to in subparagraph 7(b) of this Article, proves to the competent governmental authority or its designees that the good to be exported qualifies as an originating good of the exporting Country.
9. The competent governmental authority of the exporting Country shall provide the other Country with specimen signatures and impressions of stamps used in the offices of the competent governmental authority of the exporting Country or its designees.
10. Each Country shall ensure that the competent governmental authority or its designees shall keep a record of the certificates of origin issued for a period of five years after the date on which the certificate was issued. Such record will include all antecedents, which were presented to prove the qualification as an originating good of the exporting Country.
Article 41. Advance Rulings
The importing Country shall endeavour to, prior to the importation of a good, issue a written advance ruling as to whether the good to be imported qualifies as an originating good of the exporting Country to importers of the good of the exporting Country or their authorised agents and exporters, and producers of the good in the territory of the exporting Country or their authorised agents, where a written application is made with all the necessary information.
Article 42. Obligations Regarding Exportations
Each Country shall, in accordance with its laws and regulations, ensure that the exporter to whom a certificate of origin has been issued, or the producer of a good in the territory of the exporting Country referred to in subparagraph 7(b) of Article 40:
(a) shall notify in writing the competent governmental authority of the exporting Country or its designees without delay when he knows that such good does not qualify as an originating good of the exporting Country; and
(b) shall keep the records relating to the origin of a good for five years after the date on which the certificate of origin was issued.
Article 43. Request for Checking of Certificate of Origin
1. For the purposes of determining whether a good imported from the territory of the other Country under preferential tariff treatment qualifies as an originating good of the other Country, the relevant authority of the importing Country may request information relating to the origin of the good from the competent governmental authority of the exporting Country on the basis of a certificate of origin, where it has reasonable doubt as to the authenticity of the certificate of origin or the accuracy of the information included in the certificate of origin.
Note: The term “relevant authority of the importing Country” referred to in Articles 43 through 46 means:
(a) in the case of Japan, the customs authority; and
(b) in the case of Malaysia, the Ministry of International Trade and Industry.
2. For the purposes of paragraph 1 of this Article, the competent governmental authority of the exporting Country shall, in accordance with its laws and regulations, provide the information requested within a period of three months from the date of receipt of the request.
If the relevant authority of the importing Country considers necessary, it may require additional information relating to the origin of the good. If additional information is requested by the relevant authority of the importing Country, the competent governmental authority of the exporting Country shall, in accordance with its laws and regulations, provide the information requested within a period of two months from the date of receipt of the request.
3. For the purposes of paragraph 2 of this Article, the competent governmental authority of the exporting Country may request the exporter to whom a certificate of origin has been issued, or the producer of the good in the territory of the exporting Country referred to in subparagraph 7(b) of Article 40, to provide the former with the information requested.
Article 44. Verification Visit
1. If the relevant authority of the importing Country is not satisfied with the outcome of the request for checking pursuant to Article 43, it may request the exporting Country:
(a) to collect and provide information relating to the origin of the good and check, for that purpose, the facilities used in the production of the good, through a visit by its competent governmental authority along with the relevant authority of the importing Country to the premises of the exporter to whom a certificate of origin has been issued, or the producer of the good in the territory of the exporting Country referred to in subparagraph 7(b) of Article 40; and