(g) collection of parts and components classified as a good in accordance with Rule 2(a) of the General Rules for the Interpretation of the Harmonized System;
(h) mere making-up of sets of articles; or
(i) sharpening or simple cutting.
2. Paragraph 1 shall prevail over the product specific rules set out in Annex 2.
Article 3.8. Consignment Criteria
1. An originating good of the other Party shall be deemed to meet the consignment criteria when it is:
(a) transported directly from the other Party; or
(b) transported through one or more non-Parties for the purpose of transit or temporary storage in warehouses under the customs control of such non-Parties, provided that it does not undergo operations other than repacking and relabeling for the purpose of satisfying the requirements of the importing Party, splitting up of the consignment, unloading, reloading, storing or any other operation to preserve it in good condition or to transport the good to the importing Party during its transshipment and temporary storage.
2. If the originating good of the other Party does not meet the consignment criteria referred to in paragraph 1, that good shall not be considered as an originating good of the other Party.
Article 3.9. Unassembled or Disassembled Goods
Where a good satisfies the requirements of the relevant provisions of Articles 3.2 through 3.7 and is imported into a Party from the other Party in an unassembled or disassembled form but is classified as an assembled good in accordance with 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 Party.
Article 3.10. Fungible Goods and Materials
1. For the purpose of determining whether a good qualifies as an originating good of a Party, where fungible originating materials of the Party 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 in accordance with an inventory management method under the Generally Accepted Accounting Principles in the Party.
2. Where fungible originating goods of a Party 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 Party where they were commingled other than unloading, reloading and any other operation to preserve them in good condition, the origin of the good may be determined in accordance with an inventory management method under the Generally Accepted Accounting Principles in the Party.
Article 3.11. Indirect Materials
Indirect materials shall be, without regard to where they are produced, considered as originating materials of a Party where the good is produced.
Article 3.12. 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 to 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 a 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 Party where the good is produced or non-originating materials, as the case may be, in calculating the qualifying value content of the good, provided that:
(a) the accessories, spare parts or tools are not invoiced separately from the good, without regard to 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.
Article 3.13. Packaging Materials and Containers for Retail Sale
1. Packaging materials and containers for retail sale, which are classified with the good in accordance with Rule 5 of the General Rules for the Interpretation of the Harmonized System, shall be disregarded in determining the origin of the good, provided that:
(a) the good is wholly obtained or produced entirely in a Party, as defined in subparagraph (a) of Article 3.2;
(b) the good is produced entirely in a Party exclusively from originating materials of the Party, as defined in subparagraph (b) of Article 3.2; or
(c) the good has undergone the applicable change in tariff classification or a specific manufacturing or processing operation set out in Annex 2.
2. If a good is subject to a qualifying value content requirement, the origin of packaging materials and containers for retail sale shall be taken into account as originating or non-originating, as the case may be, for calculating the qualifying value content of the good.
Article 3.14. Packing Materials and Containers for Transportation and Shipment
Packing materials and containers for transportation and shipment of a good shall not be taken into account in determining the origin of the good.
Article 3.15. Sets of Goods
Each Party shall provide that for a set classified as a result of the application of Rule 3 of the General Rules for the Interpretation of the Harmonized System, the originating status of the set shall be determined in accordance with the product specific rules set out in Annex 2 that apply to the set.
Article 3.16. Proof of Origin
1. Any of the following shall be considered as a proof of origin:
(a) a certificate of origin issued by the competent governmental authority of the exporting Party or its designees in accordance with Article 3.17;
(b) a declaration of origin completed by an approved exporter in accordance with subparagraph 1(a) of Article 3.18; or
(c) a declaration of origin completed by an importer, exporter or producer in accordance with subparagraph 1(b) of Article 3.18,
based on the information available that the good is an originating good.
2. The Parties shall implement subparagraph 1(c) from the earlier of the following dates:
(a) the date decided by the Parties; or
(b) the date on which the Parties commence the utilization of a declaration of origin completed by an importer, exporter or producer as a proof of origin, on the basis of an international agreement to which the Parties are parties.
3. Notwithstanding the paragraph 2, Japan may, from the date of entry into force of this Agreement, consider a declaration of origin by an importer as a proof of origin in the same manner as provided for in paragraph 1. In that case, the customs authority of Japan shall not conduct a verification process by means referred to in subparagraphs 1(b) and of Article 3.23 regarding the declaration of origin by the importer, as provided for in paragraph 2 of that Article. The declaration of origin shall only be completed by the importer where that importer has sufficient information to prove that the good qualifies as an originating good.
4. A proof of origin referred to in paragraph 1 shall:
(a) be in writing, or any other medium, including electronic format;
(b) be completed in the English language;
(c) specify that the good is an originating good and meets the requirements of this Chapter; and
(d) contain information which meets the minimum information requirements as set out in Annex 3.
5. Each Party shall provide that a proof of origin remains valid for one year from the date on which it is issued or completed.
Article 3.17. Certificate of Origin
1. A certificate of origin referred to in subparagraph 1(a) of Article 3.16 shall be issued by the competent governmental authority of the exporting Party or other entities or bodies designated by the competent governmental authority in accordance with the applicable laws and regulations of the exporting Party on request of the exporter or its authorized agent.
2. Where the competent governmental authority of the exporting Party designates other entities or bodies to carry out the issuance of certificate of origin, the exporting Party shall notify in writing the other Party of its designees.
3. For the purposes of this Chapter, upon entry into force of this Agreement, the Parties shall establish a common format of certificate of origin in the English language as a part of the Operational Procedures for Rules of Origin referred to in Article 3.30.
4. An issued certificate of origin shall be applicable to a single importation of originating goods of the exporting Party into the importing Party unless otherwise provided for in this Chapter.
5. Where the exporter of a good is not the producer of the good in the exporting Party, the exporter may request a certificate of origin on the basis of:
(a) a declaration provided by the exporter to the competent governmental authority of the exporting Party 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 of the exporting Party or its designees on request of the exporter.
6. A certificate of origin shall be issued only after the exporter who requests the certificate of origin, or the producer of a good in the exporting Party referred to in subparagraph 5(b), proves to the competent governmental authority of the exporting Party or its designees that the good to be exported qualifies as an originating good of the exporting Party.
7. The competent governmental authority of the exporting Party shall provide the importing Party with specimen signatures and impressions of stamps used in the offices of the competent governmental authority or its designees.
8. The competent governmental authority of the exporting Party shall, when it cancels the decision to issue a certificate of origin, promptly notify the cancellation to the exporter to whom the certificate of origin has been issued, and to the customs authority of the importing Party, except where the certificate of origin has been returned to the competent governmental authority.
Article 3.18. Declaration of Origin
1. A declaration of origin referred to in subparagraphs 1(b) and (c) of Article 3.16 may be completed by:
(a) an approved exporter within the meaning of Article 3.19; or
(b) an importer, exporter or producer of the good where applicable.
2. A declaration of origin shall:
(a) bear the name of the certifying person; and
(b) bear the date on which the declaration of origin was completed.
3. Each Party shall provide that a declaration of origin may apply to:
(a) a single shipment of a good into the Party; or
(b) multiple shipments of identical goods within any period of time specified in the declaration of origin, but not exceeding 12 months.
Article 3.19. Approved Exporter
1. Each Party shall provide for the authorization of an exporter who exports goods under this Agreement as an approved exporter, in accordance with its laws and regulations. The competent governmental authority of the exporting Party may grant the status of an approved exporter subject to any conditions which it considers appropriate, including the following:
(a) that the exporter is duly registered in accordance with the laws and regulations of the exporting Party;
(b) that the exporter knows and understands the rules of origin as set out in this Chapter;
(c) that the exporter has a satisfactory level of experience in export in accordance with the laws and regulations of the exporting Party;
(d) that the exporter has a record of good compliance, measured by risk management of the competent governmental authority of the exporting Party;
(e) that the exporter, in the case of a trader, is able to obtain a declaration by the producer confirming the originating status of the good for which the declaration of origin is completed by an approved exporter and the readiness of the producer to cooperate in verification in accordance with Article 3.23, and is able to meet all the requirements of this Chapter; and
(f) that the exporter has a well-maintained bookkeeping and record-keeping system, in accordance with the laws and regulations of the exporting Party.
2. The competent governmental authority of the exporting Party shall:
(a) make its approved exporter procedures and requirements public and easily available;
(b) grant the approved exporter authorization in writing or electronically; and
(c) provide the approved exporter with an authorization code which must be included in the declaration of origin.
3. The exporting Party shall ensure that an approved exporter has the following obligations:
(a) to allow the competent governmental authority of the exporting Party access to records and premises for the purpose of monitoring the use of authorization, in accordance with Article 3.26;
(b) to complete declarations of origin only for goods for which the approved exporter has been allowed to do so by the competent governmental authority of the exporting Party and for which it has all appropriate documents proving the originating status of the goods concerned at the time of completing the declaration;
(c) to take full responsibility for all declarations of origin completed, including any misuse; and
(d) to promptly inform the competent governmental authority of the exporting Party of any changes related to the information referred to in subparagraph (b).
4. Each Party shall promptly inform the following information of its approved exporters to the other Party. Any change in the items referred to in subparagraphs (a) through (c), or withdrawals or suspensions of authorizations, shall be promptly notified to the other Party:
(a) the legal name and address of the exporter;
(b) the approved exporter authorization code; and
(c) the issuance date and, if applicable, the expiry date of its approved exporter authorization.
5. The competent governmental authority of the exporting Party shall monitor the use of the authorization, including verification of the declarations of origin by an approved exporter, and withdraw the authorization where the conditions referred to in paragraph 1 are not met.
6. The exporting Party shall ensure that an approved exporter is prepared to submit at any time, on request of the customs authorities of the importing Party, all appropriate documents proving the originating status of the goods concerned, including statements from the suppliers or producers in accordance with the laws and regulations of the importing Party as well as the fulfillment of the other requirements of this Chapter.
Article 3.20. Claim for Preferential Tariff Treatment
1. The importing Party shall grant preferential tariff treatment in accordance with this Agreement to an originating good on the basis of a proof of origin.
2. Unless otherwise provided for in this Chapter, the importing Party shall provide that, for the purpose of claiming preferential tariff treatment, the importer shall:
(a) make a declaration in its customs declaration that the good qualifies as an originating good;
(b) have a valid proof of origin in its possession at the time when the declaration referred to in subparagraph (a) is made;
(c) provide the proof of origin to the customs authority of the importing Party when required by the importing Party; and
(d) if a claim for preferential tariff treatment is based on a declaration of origin referred to in subparagraph 3(b) of Article 3.18, provide a copy of the declaration of origin to the customs authority of the importing Party when required by the importing Party.
3. Notwithstanding paragraphs 1 and 2, the importing Party may not require a proof of origin if:
(a) the customs value of the importation does not exceed US$ 200 or the equivalent amount in the importing Party’s currency or any higher amount as the importing Party may establish; or
(b) it is a good for which the importing Party has waived the requirement,
provided that the importation does not form part of a series of importations carried out or planned for the purpose of evading compliance with the laws and regulations of the importing Party governing claims for preferential tariff treatment under this Agreement.
4. The customs authority of the importing Party may require, where appropriate, the importer to submit supporting evidence that a good qualifies as an originating good, in accordance with the requirements of this Chapter.
5. Where a proof of origin is submitted to the customs authority of the importing Party after the expiration of the period of time for its submission, such proof of origin may still be accepted, subject to the laws, regulations or administrative practices of the importing Party, when failure to observe the period of time results from force majeure or other valid causes beyond the control of the importer or exporter.
6. Where an originating good of the exporting Party is imported through one or more non-Parties, the importing Party may require the importer who claims preferential tariff treatment for that good to meet the consignment criteria referred to in Article 3.8 to submit:
(a) a copy of the through bill of lading; or
(b) a certificate or any other information given by the customs authorities of such non-Parties or other relevant entities, which evidences that the good has not undergone operations other than unloading, reloading and any other operation to preserve it in good condition in those non-Parties.
Article 3.21. Importation by Installments
If, on request of the importer, unassembled or disassembled goods within the meaning of Rule 2(a) of the General Rules for the Interpretation of the Harmonized System are imported by installments, a single proof of origin for such goods may be used in accordance with the requirements laid down by the customs authority of the importing Party.
Article 3.22. Post-Importation Claims for Preferential Tariff
Each Party shall provide that where a good would have qualified as an originating good when it was imported into the Party, the importer of the good may, within a period of time specified by its laws and regulations, apply for a refund of any excess duties, deposit or guarantee paid as the result of the good not having been granted preferential tariff treatment, if the importer has notified the customs authority of the importing Party of its intention to claim preferential tariff treatment at the time of importation. The importer shall present the following to the customs authority of the importing Party:
(a) a proof of origin and other evidence that the good qualifies as an originating good; and
(b) such other documentation in relation to the importation as the customs authority of the importing Party may require to satisfactorily evidence the preferential tariff treatment claimed.
Article 3.23. Verification
1. For the purpose of determining whether a good imported into a Party from the other Party qualifies as an originating good under this Chapter, where necessary, the customs authority of the importing Party may conduct a verification process normally in the following order:
(a) a written request for information from the importer;
(b) a written request for information from:
(i) the competent governmental authority of the exporting Party that issued a certificate of origin referred to in subparagraph 1(a) of Article 3.16, or an approved exporter who completed a declaration of origin referred to in subparagraph 1(b) of that Article, through the competent governmental authority of the exporting Party; or
(ii) the exporter or producer that completed a declaration of origin referred to in subparagraph 1(c) of Article 3.16, through the competent governmental authority or the customs authority of the exporting Party; and
(c) a verification visit to the premises of the exporter or producer in the exporting Party with prior notice to the exporting Party.
Note: A verification visit referred to in subparagraph (c) shall only be undertaken after a verification process in accordance with subparagraph (b) has been conducted.
2. If a claim for preferential tariff treatment is based on a declaration of origin completed by an importer referred to in subparagraph 1(c) of Article 3.16, the customs authority of the importing Party shall not conduct a verification process by means referred to in subparagraphs 1(b) and (c).
3. Except for the case of a claim for preferential tariff treatment based on a declaration of origin completed by the importer, the customs authority of the importing Party shall conduct a verification process under subparagraph 1(b) or (c) before it denies the claim for preferential tariff treatment, if the importer, in response to a request for information under subparagraph 1(a), does not provide:
(a) required information to the customs authority of the importing Party; or
(b) sufficient information to support a claim for preferential tariff treatment.
4. The customs authority of the importing Party shall:
(a) for the purposes of subparagraph 1(b)(i), send a written request with a copy of the proof of origin and the reasons for the request to the competent governmental authority of the exporting Party;
(b) for the purposes of subparagraph 1(b)(ii), send a written request with a copy of the proof of origin and the reasons for the request to the competent governmental authority or the customs authority of the exporting Party; and
(c) for the purposes of subparagraph 1(c), request a written consent of the exporter or producer whose premises are to be visited through the exporting Party, stating the proposed date and location for a verification visit and its specific purpose.
5. On request of the importing Party, a verification visit to the premises of the exporter or producer may be conducted with the consent and assistance of the exporting Party, according to the procedures decided by the Parties.
6. For a verification under subparagraphs 1(b) and (c):
(a) the competent governmental authority or the customs authority of the exporting Party shall provide the information requested in a period not exceeding six months after the date of receipt of the written request referred to in subparagraph 4(a) or (b); and
(b) the exporting Party shall respond to the request for a written consent referred to in subparagraph 4(c) with consent or refusal in a period not exceeding 30 days after the date of receipt of the request.
7. For a verification under subparagraphs 1(b) and (c), the customs authority of the importing Party shall endeavor to make a determination following a verification within 90 days of the date of its receipt of the information necessary to make the determination, and shall provide a written notification of the result of verification with the reasons for that result to the importer, or the competent governmental authority or the customs authority of the exporting Party that received the verification request.
8. For a verification under subparagraph 1(b), the customs authority of the importing Party may require additional information if it considers necessary. The customs authority of the importing Party shall allow the exporter, producer or the competent governmental authority of the exporting Party a period of 90 days from the date of receipt of the written request to respond.
9. The customs authority of the importing Party may suspend the application of preferential tariff treatment while waiting for the result of verification. The customs authority of the importing Party shall permit the release of the good, but may require that such release be subject to lodgement of a security in accordance with its laws and regulations.
10. The customs authority of the importing Party shall not conduct any verification under subparagraphs 1(a) through (c) after the period of time specified in paragraph 1 of Article 3.26.
11. For the purposes of this Article, each Party shall designate a single contact point with a view to facilitating a verification of a good exported from the Party.
Article 3.24. Denial of Preferential Tariff Treatment
1. The customs authority of the importing Party may deny preferential tariff treatment where:
(a) the good does not meet the requirements of this Chapter; or
(b) the importer, exporter or producer of the good fails or has failed to comply with any of the relevant requirements of this Chapter for obtaining preferential tariff treatment.
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.
3. The customs authority of the importing Party may determine that a good does not qualify as an originating good and may deny preferential tariff treatment where:
(a) the customs authority of the importing Party has not received sufficient information to determine that the good is an originating good;
(b) the importer, exporter, producer, the competent governmental authority or the customs authority of the exporting Party fails to respond to a written request for information in accordance with Article 3.23; or
(c) the exporting Party refuses the request for a verification visit in accordance with Article 3.23, or the exporting Party fails to respond to the request.
4. Each Party shall endeavor to make publicly available any information on denial cases which it considers to be of significant interest to other interested persons, taking into account the need to protect commercial confidential information.