(ii) used goods collected in the exporting Party, provided that such goods are fit only for the recovery of raw materials; and
(k) Goods obtained or produced in the exporting Party from products referred to in paragraphs (a) to (j).
Article 4.4. Not Wholly Obtained or Produced Goods
1. For the purposes of Article 4.2(b), goods shall be deemed to be originating in the Party where working or processing of the goods has taken place:
(a) if the goods have a regional value content (RVC) of not less than forty percent (40%) calculated using the formula set out in Article 4.5; or
(b) if all non-originating materials used in the production of the goods have undergone a change in tariff classification (hereinafter referred to as "CTC") at four-digit level (i.e. a change in tariff heading) of the Harmonized System.
2. Each Party shall permit the exporter of the goods to decide whether to use paragraphs 1(a) or 1(b) when determining whether the goods qualify as originating goods of the Party.
3. Notwithstanding paragraph 1, goods shall qualify as originating goods if the goods satisfy the product specific rules as specified in Annex 4-B.
4. Where a product specific rule provides a choice of rules from a RVC-based rule of origin, a CTC-based rule of origin, or a combination of any of these, each Party shall permit the exporter of the goods to decide which rule to use in determining whether the goods qualify as originating goods of the Party.
5. Where product specific rules requiring that the materials used have undergone CTC, the rules shall apply only to non-originating materials.
Article 4.5. Calculation of Regional Value Content
1. For the purposes of Article 4.4, the formula for calculating Viet Nam – Chile Value Content or RVC is as follows:
RVC = FOB Price - Value of Non-Originating Materials or Goods / FOB Price x 100 %
2. For the purposes of calculating the RVC provided in paragraph 1:
(a) Value of Non-Originating Materials or Goods shall be:
(i) The CIF value at the time of importation of the goods or Importation can be proven; or
(ii) The earliest ascertained price paid for the goods of undetermined origin in the territory of the Party where the working or processing takes place.
(b) FOB price is the FOB value of the goods. FOB price shall be determined by adding the value of materials, production cost, profit and other costs.
Article 4.6. Accumulation
Unless otherwise provided in this Chapter, goods originating in a Party, which are used in another Party as materials for finished goods eligible for preferential tariff treatment, shall be considered to be originating in the latter Party where working or processing of the finished goods has taken place.
Article 4.7. Minimal Operations or Processes
The following minimal operations or processes, undertaken exclusively by themselves or in combination, do not confer origin:
(a) operations to ensure the preservation of products in good condition during transport and storage such as drying, freezing, ventilation, chilling and like operations;
(b) sifting classifying, washing, cutting, slitting, bending, coiling, or uncoiling, sharpening, simple grinding, slicing;
(c) cleaning, including removal of oxide, oil, paint or other coverings;
(d) painting and polishing operations;
(e) testing or calibration;
(f) placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(g) simple mixing (2) of goods, whether or not of different kinds;
(h) simple assembly (3) of parts of products to constitute a complete good;
(i) changes of packing, unpacking or repacking operations, and breaking up and assembly of consignments;
(j) affixing or printing marks, labels, logos and other like distinguishing signs on goods or their packaging;
(k) mere dilution with water or another substance that does not materially alter the characteristics of the goods; and
(l) husking, partial or total bleaching, polishing and glazing of cereals and rice.
Article 4.8. Direct Consignment
1. An originating good shall be deemed as directly consigned from the exporting Party to the importing Party:
(a) if the goods are transported without passing through the territory of any non-Party; or
(b) if the goods are transported for the purpose of transit through non-Party with or without transshipment or temporary storage in such non-Party, provided that:
(i) the transit is justified for geographical reasons or transport requirements;
(ii) the goods have not entered into trade or consumption in the territory of the non-Party; and
(iii) the goods have not undergone any operation in the territory of the non-Party other than unloading, reloading and splitting-up/bulk breaking or any operation required to keep the goods in good condition.
2. In the case where an originating good of the exporting Party is imported through one or more non-Parties or after an exhibition in a non-Party, the Customs Authority of the importing Party may require importers, who claim the preferential tariff treatment for the good, to submit supporting documentation such as transport, customs documents or other documents.
Article 4.9. De Minimis
A good that does not undergo a change in tariff classification shall be considered as originating if the value of all non-originating materials used in its production that do not undergo the required change in tariff classification does not exceed ten percent (10%) of the FOB value of the good and the good meets all other applicable criteria set forth in this Chapter for qualifying as an originating good.
Article 4.10. Treatment of Packages, Packing Materials and Containers
1. If a good is subject to the RVC provided in Article 4.4, the value of the packages and packing materials for retail sale, shall be taken into account in determining the origin of that good as originating or non-originating, as the case may be, provided that the packages and packing materials are considered to be forming a whole with the good.
2. If a good is subject to the change in tariff classification criterion provided in Article 4.4, packages and packing materials classified together with the packaged good, shall not be taken into account in determining origin.
3. Packing materials and containers used exclusively for the transportation of a good shall not be taken into account in determining the origin of such goods.
Article 4.11. Accessories, Spare Parts and Tools
1. If a good is subject to the requirements of CTC, the origin of accessories, spare parts, tools and instructional or other information materials presented with the good shall not be taken into account in determining whether the good qualifies as an originating good, provided that:
(a) the accessories, spare parts, tools and instructional or other information materials are not invoiced separately from the good; and
(b) the quantities and value of the accessories, spare parts, tools and instructional or other information materials are customary for the good.
2. If a good is subject to the RVC-based rule of origin, the value of the accessories, spare parts, tools and instructional or other information materials shall be taken into account as the value of the originating or non-originating materials, as the case may be, in calculating the RVC of the originating good.
Article 4.12. Indirect Materials
1. Indirect materials shall be treated as originating materials regardless of where they are produced.
2. For the purposes of this Article, indirect materials 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 a good, including:
(a) fuel and energy;
(b) tools, dies and moulds;
(c) spare parts and materials used in the maintenance of equipment and buildings;
(d) lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
(e) gloves, glasses, footwear, clothing, safety equipment and supplies;
(f) equipment, devices and supplies used for testing or inspecting the good;
(g) catalyst and solvent; and
(h) any other goods that are not incorporated into the good but of which use in the production of the good can reasonably be demonstrated to be a part of that production.
Article 4.13. Identical and Interchangeable Materials
1. The determination of whether identical and interchangeable materials are originating materials shall be made either by physical segregation of each of the materials or by the use of GAAP of stock control applicable, or inventory management practice, in the exporting Party.
2. Once a decision has been taken on the inventory management method, that method shall be used throughout the fiscal year.
Article 4.14. Certificate of Origin
A claim that a good shall be accepted as eligible for preferential tariff treatment shall be supported by a Certificate of Origin (Form VC), as set out in Annex 4-C issued by the issuing authority and notified to the other Party in accordance with the Operational Certification Procedures, as set out in Annex 4-A.
Chapter 5. Customs Administration
Article 5.1. Definitions
For the purposes of this Chapter:
customs law means such laws and regulations administered and enforced by the Customs Authority of each Party concerning the importation, exportation, and transit/transshipment of goods, as they relate to customs duties, charges, and other taxes, or to prohibitions, restrictions, and other similar controls with respect to the movement of controlled items across the boundary of the customs territory of each Party;
customs procedures means the treatment applied by the Customs Authority of each Party to goods which are subject to customs control;
requesting authority means the Customs Authority which requests assistance; and
requested authority means the Customs Authority from which assistance is requested.
Article 5.2. Objectives
The objectives of this Chapter are to:
(a) simplify and harmonize customs procedures of the Parties;
(b) ensure consistency, predictability and transparency in the application of customs laws and regulations of the Parties;
(c) ensure efficient and expeditious release of goods;
(d) facilitate trade in goods between the Parties by the use of information and communications technology, taking into account international standards; and
(e) promote cooperation between the Customs Authorities with relevant international standards and recommended practices such as those made under the auspices of the Customs Co-operation Council of the World Customs Organization.
Article 5.3. Scope and Coverage
1. This Chapter shall apply to customs procedures for goods traded between the Parties.
2. This Chapter shall be implemented in accordance with the laws and regulations of each Party and within the competence and available resources of their respective Customs Authorities.
Article 5.4. Review and Appeal
1. Each Party shall ensure that with respect to its determinations on customs matters, in accordance with the Party's domestic laws and regulations, importers in its territory have access to:
(a) administrative review independent of the official that issued the determination; and
(b) judicial review of the determination or decision taken at the final level of administrative review.
2. Notice of the decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing.
Article 5.5. Release of Goods/customs Control
1. Each Party shall endeavor to apply customs procedures in a predictable, consistent and transparent manner for the efficient release of goods in order to facilitate trade between the Parties.
2. For prompt release of goods traded between the Parties, each Party shall to the extent possible:
(a) provide for the release of goods within a period no longer than that required to ensure compliance with its customs laws and regulations; and to the extent possible, within forty eight (48) hours of all relevant customs imports;
(b) make use of information and communications technology;
(c) adopt or maintain procedures allowing, to the extent possible, goods to be released at the point of arrival, without temporary transfer to warehouses or other locations;
(d) harmonize its customs procedures, as far as possible, with relevant international standards and best practices, such as those recommended by the World Customs Organization; and
(e) adopt or maintain procedures allowing the release of goods prior to, and without prejudice to, the final determination by its Customs Authority of the applicable customs duties, taxes and fees, subject to domestic procedures.
Article 5.6. Risk Management
1. In order to facilitate release of goods traded between the Parties, and within available resource and competence of each Party, the Customs Authority shall use risk management methodology.
2. The Customs Authority of each Party shall exchange information, including best practices on risk management techniques and other enforcement techniques.
3. Each Party shall endeavor to adopt or maintain risk management systems that enable its Customs Authority to concentrate inspection activities on high risk goods and that simplify the clearance and movement of low risk goods.
Article 5.7. Cooperation and Capacity Building
1. Each Party shall cooperate on capacity building for trade facilitation, such as training, technical assistance, exchange of experts and any other forms of cooperation, as may be mutually agreed upon by the Parties. 2. To the extent permitted by their domestic laws and regulations, the Customs Authority of each party shall assist each other in relation to:
(a) achieving compliance with their laws and regulations pertaining to the implementation and operation of the provisions of this Agreement; and such other customs matters as the Parties may agree;
(b) the implementation and operation of the WTO Customs Valuation Agreement;
(c) the enforcement of prohibitions and restrictions on exports to and imports from their respective territories;
(d) joint efforts to combat customs fraud; and
(e) cooperation in any other areas as may be mutually agreed by the Parties.
Article 5.8. Mutual Assistance
1. The Customs Authority of each Party shall, to the extent possible, provide the Customs Authority of the other Party, upon request or on its own initiative, with information which helps to ensure proper application of customs laws and regulations, and the prevention of violation or attempted violation of customs laws and regulations.
2. To the extent permitted by their customs laws and regulations, the Customs Authorities may provide each other with mutual assistance in order to prevent or investigate violations of customs laws and regulations.
3. The request pursuant to paragraph 1 shall, wherever appropriate, specify:
(a) the verification procedures that the requesting authority has undertaken or attempted to undertake; and
(b) the specific information that the requesting authority requires, which may include:
(i) subject and reason for the request;
(ii) a brief description of the matter and the action requested; and
(iii) the names and addresses of the parties concerned with the proceedings, if known.
Article 5.9. Enforcement Against Illicit Trafficking
The Customs Authority of each Party shall, to the extent permitted by their laws and regulations, wherever possible, cooperate and exchange information in their enforcement against the trafficking of illicit drugs and other prohibited goods in their respective territories.
Article 5.10. Information and Communications Technology
For the purpose of improving customs procedures, the Customs Authorities of the Parties shall make cooperative efforts to promote the use of information and communications technology in their customs procedures, including sharing best practices.
Article 5.11. Confidentiality
1. Each Party's Customs Authority undertakes not to use any information received in accordance with this Chapter or Chapter 4 (Rules of Origin) other than for the purpose for which the information was given, or to disclose any such information, except in cases where: (a) the Customs Authority that furnished the information has expressly approved its use or disclosure for other purposes related to this Chapter or Chapter 4 (Rules of Origin); or (b) the domestic laws and regulations of the receiving Customs Authority require disclosure, in which case the receiving Customs Authority shall notify the Customs Authority that furnished the information of the relevant laws and regulations.
2. Any information received in accordance with this Chapter or Chapter 4 (Rules of Origin) shall be treated as confidential and will be subject to the same protection and confidentiality as the same kind of information under the domestic laws and regulations of the Customs Authority where it is received.
3. Nothing in this Chapter or Chapter 4 (Rules of Origin) shall be construed to require a Party to furnish or allow access to information the disclosure of which would:
(a) be contrary to the public interest as determined by its laws, rules or regulations;
(b) be contrary to any of its laws, rules and regulations, including but not limited to those protecting personal privacy or the financial affairs and accounts of individuals; or
(c) impede law enforcement.
Article 5.12. Paperless Trading
1. The Customs Authority of each Party, in implementing initiatives which provide for the use of paperless trading, shall take into account the methods agreed by the World Customs Organization, including the adoption of the World Customs Organization data model for the simplification and harmonization of data.
2. The Customs Authority of each Party shall work towards having electronic means for all its customs reporting requirements, as soon as practicable.
3. The introduction and enhancement of information technology shall, to the greatest extent possible, be carried out in consultation with all relevant parties including businesses directly affected.
Article 5.13. Provision of Information
The Customs Authorities may provide each other with information on any related regulations of general application governing customs matters that they propose to adopt and shall publish any regulation of general applications governing customs matters as soon as it comes into force.
Article 514. Publication and Enquiry Points
For the purposes of this Chapter, each Party shall:
(a) publish on the internet or in print form all statutory and regulatory provisions and procedures applicable or enforced by its Customs Authority; and
(b) designate one or more enquiry points to address enquiries from the other Party concerning customs matters, and shall make available on the internet, or in print form, information concerning procedures for making such enquiries.
Chapter 6. Sanitary and Phytosanitary Measures
Article 6.1. Definitions
For the purposes of this Chapter:
1. The definitions in Annex A of the SPS Agreement are incorporated into this Chapter and shall form part of this Chapter, mutatis mutandis.
2. The relevant definitions developed by the international standard setting bodies recognized by the SPS Agreement, the Codex Alimentarius Commission (Codex), the World Organisation for Animal Health (OIE) and the International Plant Protection Convention (IPPC) shall be referenced in the implementation of this Chapter.
Article 6.2. Objectives
The objectives of this Chapter are to:
(a) facilitate the implementation of the SPS Agreement and applicable international standards, guidelines and recommendations developed by relevant international standard setting bodies;