Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the HS are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.
Article 3.29. Treatment of Erroneous Declaration In the Certificate of Origin
Neither erasures nor superimposition shall be allowed on the certificate of origin. Any alterations shall be made by issuing a new certificate of origin to replace the erroneous one. The reference number of the corrected certificate of origin should be indicated in the appropriate field on the newly issued certificate of origin as detailed in Annex 3B. The validity of the replacement certificate will be the same as the original.
Article 3.30. Treatment of Minor Discrepancies
1. The discovery of minor discrepancies between the statements made in the certificate of origin and those made in the documents submitted to the customs authority of the importing Party for the purposes of carrying out the formalities for importing the goods, shall not ipso-facto invalidate the certificate of origin, if it does in fact correspond to the goods submitted.
2. Obvious formal errors on a proof of origin, such as typing errors, should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.
Article 3.31. Waiver of Certification of Origin
A Party may not require a certification of origin if:
(a) the customs value of the importation does not exceed US $500 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 or does not require the importer to present a certification of origin, 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 importing Party’s laws governing claims for preferential tariff treatment under this Agreement.
Article 3.32. Customs Duty Refund
If at the time of importation of a good the importer does not claim or is unable to claim preferential tariff treatment, the importer may, within one year from the date of importation, or within a longer period if provided for by a Party in its laws and regulations, apply for a refund of any excess customs duty paid on production of: (a) a proof of origin and, where appropriate, other evidence that the good qualifies as an originating good, and (b) other documentation relating to the importation of the good as the customs administration of the importing Party may require.
Section D. Cooperation and Origin Verification
Article 3.33. Denial of Preferential Tariff Treatment
1. Except as otherwise provided in this Chapter, the customs authority of the importing Party may deny a claim for preferential tariff treatment or recover unpaid duties, in accordance with its laws and regulations, when:
(a) the good does not meet the requirements of this Chapter;
(b) the importer, exporter, or producer of the good failed to comply with any of the relevant requirements of this Chapter for obtaining preferential tariff treatment;
(c) the customs authority of the importing Party has not received sufficient information to determine that the good is originating, or
(d) the competent or customs authority of the exporting Party does not comply with the requirements of verification in accordance with Article 3.35 or Article 3.36.
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. Upon being communicated the grounds for denial of preferential tariff treatment, the importer may, within the period provided for in the custom laws of the importing Party, file an appeal against such decision with the appropriate authority under the customs laws and regulations of the importing Party.
Article 3.34. Treatment of Subsequent Imports
1. In cases of disqualification of the product's origin, the customs authority of the importing Party may deny preferential treatment for the customs clearance of new imports concerning the identical product from the same producer until it is demonstrated that the conditions have been modified for it to be considered originating under the terms provided by this Chapter.
2. Once the competent authority of the exporting Party has provided the necessary information to demonstrate that the conditions have been modified for the product to be considered originating under the terms provided by this Chapter, the competent authority of the importing Party shall have 60 days from the date of receipt of such information to communicate a decision on the matter, or up to a maximum of 90 days if a new on-site verification visit to the producer's facilities is necessary in accordance with Article 3.35 or Article 3.36.
Article 3.35. Verification
1. The customs authority of the importing Party may request a verification at random or when it has reasonable doubt as to the authenticity of the document or as to the accuracy of the information regarding the true origin of the goods in question or of certain parts thereof.
2. For the purpose of paragraph 1, the custom authority of the importing Party may conduct the checking process by issuing a written request for additional information from the customs or competent authority of the exporting Party.
3. The request shall be accompanied with the copy of proof of origin concerned and shall specify the reasons and any additional information suggesting that the particulars given on the said proof of origin may be inaccurate, unless the verification is requested on a random basis.
4. The customs authority of the importing Party may suspend the provisions on preferential treatment while awaiting the result of verification. However, it may release the goods to the importer subject to any administrative measures deemed necessary, provided that they are not held to be subject to import prohibition or restriction and there is no suspicion of fraud.
5. Pursuant to paragraph 2, the concerned Party receiving a request for verification shall respond to the request promptly and reply not later than 90 days after the receipt of the request.
6. When a reply from the concerned Party is not obtained within 90 days after the receipt of the request pursuant to paragraph 5, the customs authority of the importing Party may deny preferential tariff treatment to the good referred to in the said proof of origin that would have been subject to the verification and recover unpaid duties.
Article 3.36. Verification Visits
1. Pursuant to Article 3.35.2, if the customs authority of the importing Party is not satisfied with the outcome of the verification, it may, under exceptional circumstances for justifiable reasons, request to conduct a verification visit to the producer or exporter premises including inspection of the exporter’s or producer’s accounts, records or any other check considered appropriate.
2. Prior to conducting a verification visit pursuant to paragraph 1, the customs authority of the importing Party shall deliver a written notification to the customs or competent authority of the exporting Party requesting the verification visit and whether the importing Party or exporting Party will be conducting the visit.
3. The written notification mentioned in paragraph 2 shall be as comprehensive as possible and shall include, among others:
(a) the producer or exporter whose premises are to be visited;
(b) justification for the unsatisfactory outcome of the verification conducted by the competent or customs authority of the exporting Party, and
(c) the coverage of the proposed verification visit, including reference to the good subject to the verification, and evidence of fulfilling the requirements of this Chapter.
4. The customs or competent authority of the exporting Party shall obtain the written consent of the producer or exporter whose premises are to be visited.
5. When a written consent from the producer or exporter is not obtained within 30 days from the date of receipt of the verification visit notification, the customs authority of the importing Party may deny preferential tariff treatment to the good referred to in the said certificate of origin that would have been subject to the verification visit.
6. The Party conducting the verification visit shall provide the producer or exporter whose good is subject to such verification with a written determination of whether or not the good subject to such verification qualifies as an originating good.
7. Upon the issuance of the written determination referred to in paragraph 6 that the good qualifies as an originating good, the customs authority of the importing Party shall immediately restore preferential benefits, and promptly refund the duties paid in excess of the preferential duty or release guarantees obtained in accordance with the laws and regulations of the Parties.
8. Upon the issuance of the written determination referred to in paragraph 6 that the good does not qualifies as an originating good, the producer or exporter shall be allowed 30 days from the date of receipt of the written determination to provide comments or additional information in writing regarding the eligibility of the good for preferential tariff treatment. The final written determination shall be communicated to the producer or exporter within 30 days from the date of receipt of the comments or additional information.
9. The verification visit process, including the actual visit and the determination under paragraph 6, shall be carried out and its results communicated to the authorities of the Parties within a maximum period of six months from the date on which the initial verification visit was requested. While the process of verification is being undertaken, Article 3.35.4 shall be applied.
Article 3.37. Record Keeping Requirement
1. For the purposes of the verification process pursuant to Articles 3.35 and 3.36, each Party shall require that:
(a) the manufacturer, producer or exporter retain, for a period not less than five years from the date of issuance of the proof of origin, or a longer period in accordance with its laws and regulations, all supporting records necessary to prove that the good for which the proof of origin was issued was originating;
(b) the importers shall retain, for a period not less than five years from the date of importation of the good, or a longer period in accordance with its laws and regulations, all records to prove that the good for which preferential tariff treatment was claimed was originating, and
(c) the competent authority or issuing authority retain, for a period not less than five years from the date of issuance of the proof of origin, or a longer period in accordance with its laws and regulations, all supporting records of the application for the proof of origin.
2. The records referred to in paragraph 1 may be maintained in any medium that allows for prompt retrieval, including but not limited to, digital, electronic, optical, magnetic, or written form.
Article 3.38. Confidentiality
Each Party shall ensure that all information collected pursuant to this Chapter shall not be used for purposes other than the administration and enforcement of decisions and determinations relating to origin and to customs matters, except with the permission of the person or Party who provided the information.
Article 3.39. Contact Points
Each Party shall, within 30 days of the date of entry into force of this Agreement, designate one or more contact points within its competent authority for the implementation of this Chapter, and notify the other Party of the contact details. Each Party shall promptly notify the other Party of any change to those contact points.
Article 3.40. Mutual Assistance
The competent authorities of both Parties shall provide each other the following information:
(a) a specimen impression of the official stamps and signatures used in their offices for the issue of certificate of origin;
(b) name and address of the competent authorities responsible for verifying the proof of origin, and
(c) secured web address for the QR codes and electronic certificates authentications.
Section E. Consultation and Modifications
Article 3.41. Consultation and Modifications
The Parties shall consult and cooperate as appropriate through the Joint Committee to:
(a) ensure that this Chapter is applied in an effective and uniform manner, and
(b) discuss necessary amendments to this Chapter, taking into account developments in technology, production processes, and other related matters.
Chapter 4. CUSTOMS ADMINISTRATIONS AND TRADE FACILITATION
Article 4.1. General Provisions
1. The Parties reaffirm their commitments under the WTO Agreement on Trade Facilitation.
2. Each Party shall ensure that its trade facilitation and customs procedures including importation, exportation, and transit procedures, are applied in a predictable, consistent and transparent manner.
3. The Parties shall be guided by the following general principles to support the customs procedures and trade facilitation measures:
(a) transparency, efficiency, simplification, harmonization, consistency, and non-discrimination of the procedures related to exportation, importation and transit of goods;
(b) consistent, impartial, and predictable administration of their respective laws, regulations and administrative decisions relevant to trade in goods;
(c) customs procedures of each Party shall conform, where possible, to the standards and recommended practices of the World Customs Organization, WTO and other relevant international standards;
(d) consistency with relevant multilateral instruments;
(e) best possible use of information technology;
(f) controls based on risk management;
(g) cooperation within each Party among customs and other border authorities;
(h) consultations between the Parties and their respective traders and other interested parties, and
(i) the customs administration of each Party shall periodically review its customs procedures with a view to their further simplification and development to facilitate bilateral trade.
4. Each Party shall endeavour to provide for clearance of goods with minimum documentation requirements and make electronic systems accessible to customs users and use information technology that expedites procedures for the release of goods.
Article 4.2. Transparency
1. The Parties recognise the importance of timely consultations with trade representatives on legislative proposals and general procedures related to customs and trade issues. To that end, each Party shall provide for appropriate consultations between administrations and traders and other interested parties, which shall take place in each Party to the extent practicable, and in a manner consistent with its law.
2. Each Party shall ensure that their respective customs and related requirements and procedures continue to meet the needs of the trading community, follow best practices, and remain as little trade-restrictive as possible. 3. Each Party shall, as appropriate, provide for regular consultations between border agencies and traders or other stakeholders located within its territory.
4. Each Party shall promptly publish the following information, in a non-discriminatory and easily accessible manner, in order to enable governments, traders, and other interested parties to become acquainted with them:
(a) importation, exportation, and transit procedures (including port, airport, and other entry-point procedures) and required forms and documents;
(b) fees and charges imposed by, or for, governmental agencies on, or in connection with, importation, exportation or transit;
(c) rules for the classification or valuation of products for customs purposes;
(d) laws, regulations, and administrative rulings of general application relating to rules of origin;
(e) import, export, or transit restrictions or prohibitions;
(f) penalty provisions against breaches of import, export or transit formalities;
(g) review and appeal procedures;
(h) agreements or parts thereof with any country or countries relating to importation, exportation or transit;
(i) procedures relating to the administration of tariff quotas;
(j) contact points for information enquiries, and
(k) other relevant information of an administrative nature in relation to subparagraphs (a) to (j).
5. Each Party shall, to the extent practicable, and in a manner consistent with its law, ensure that new or amended laws and regulations of general application related to the movement, release, and clearance of goods, including goods in transit, are promptly publish, in a non-discriminatory and easily accessible manner, including online, as well as the interpretations of such laws and regulations.
6. Each Party shall endeavour, to the extent possible and within its available resources, to publish the information referred to in paragraphs 4 and 5, in the English language.
7. Each Party shall, to the extent practicable and in a manner consistent with its law, ensure that there is a reasonable time period between the publication of new or amended laws and regulations and fees or charges and their entry into force.
8. Each Party shall establish or maintain one or more enquiry points to answer enquiries from traders and other interested parties on customs and other trade-related matters. The enquiry points shall answer enquiries within a reasonable time period set by each Party, which may vary depending on the nature or complexity of the request. A Party shall not require the payment of a fee for answering enquiries or providing required forms and documents.
9. Nothing in this Article or in any part of this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting methodologies.
Article 4.3. Advance Rulings
1. Each Party shall issue, prior to the importation of a good of a Party into its territory, a written advance ruling upon written request, including by electronic means, of an importer in its territory, or an exporter or producer in the territory of the other Party, with regard to:
(a) tariff classification of the goods;
(b) the application of customs valuation criteria, in accordance with the Customs Valuation Agreement, and
(c) whether a good qualifies as originating in accordance with Chapter 3 (Rules of Origin).
2. Each Party shall adopt or maintain procedures for the issuance of advanced rulings, including a detailed description of the information reasonably required to process an application for a ruling.
3. Each Party shall issue an advance ruling, in accordance with its laws and regulations, in a reasonable time-bound manner, and in no case later than 90 days after it receives all the information required to process the application, including any supplemental information that may be requested. This may include a sample of the good for which the requester is seeking an advance ruling if requested by the receiving Party. In issuing an advance ruling, the Party shall take into account the facts and circumstances that the requester has provided.
4. A Party may decline to issue an advance ruling, in accordance with its laws and regulations. A Party that declines to issue an advance ruling shall promptly notify the requester in writing, setting out the relevant facts and circumstances and the basis for its decision to decline to issue the advance ruling.
5. Each Party shall provide that its advance rulings shall take effect on the date that they are issued or on a later date specified in the ruling, and remain in effect for a reasonable period of time, unless the law, facts or circumstances on which the ruling is based have changed.
6. After issuing an advance ruling, the Party may modify or revoke the advance ruling if there is a change in the law, facts or circumstances on which the ruling was based, if the ruling was based on inaccurate or false information, or if the ruling was in error.
7. A Party may apply a modification or revocation in accordance with paragraph 6 after it provides notice of the modification or revocation and the reasons for it to the requester.
8. No Party shall apply a revocation or modification retroactively to the detriment of the requester unless the ruling was based on inaccurate or false information provided by the requester.
9. Subject to each party´s advance rulings proceeding and any confidentiality requirements in its laws and regulations, each Party may make its advance rulings publicly available, including online.
Article 4.4. Review and Appeal
1. Each Party shall ensure that any person to whom it issues an administrative determination on customs matters has access to:
(a) at least one level of administrative review, independent of the official or authority (1) that issued the administrative determination, in accordance with its laws and regulations, and
(b) judicial review of such administrative determination or decision taken at the final level of administrative review.
2. Each Party shall ensure that its procedures for appeal and review are carried out in a non-discriminatory and timely manner.
3. Each Party shall ensure than an authority conducting a review or appeal under paragraph 1 notifies the person in writing of its decision in the review or appeal, and the reasons for the decision.
Article 4.5. Penalties
1. Each Party shall ensure that penalties for a breach of its customs laws, regulations, or procedural requirements are imposed only on the person or persons legally responsible for the breach.
2. The penalty imposed shall depend on the facts and circumstances of the case and shall be commensurate with the degree and severity of the breach.
3. No Party shall impose substantial penalties for minor breaches of customs regulations or procedural requirements. In particular, no penalty in respect of any omission or mistake in customs documentation which is easily rectifiable and obviously made without fraudulent intent or gross negligence shall be greater than necessary to serve merely as a warning.
4. Each Party shall ensure that if a penalty is imposed for a breach of customs laws, regulations, or procedural requirements, an explanation in writing is provided to the person or persons upon whom the penalty is imposed, specifying the nature of the breach, the basis for the penalty and instructions on the right to appeal.
5. If a person voluntarily discloses to a Party’s customs administration the circumstances of a breach of customs laws, regulations, or procedural requirements prior to the discovery of the breach by the customs administration, the Party is encouraged to, if appropriate, consider this fact as a potential mitigating factor when establishing a penalty for that person.
6. Each Party shall maintain measures to avoid conflicts of interest in the assessment and collection of penalties, ensuring that government officials do not personally benefit from any penalty or duties assessed or collected.
Article 4.6. Use of Automated Systems
1. Each Party shall endeavor, to the extent possible, to apply information and communication technologies to support customs operations, particularly in the paperless trading context, taking into account developments in this area within the World Customs Organization (WCO).
2. The customs authority of each Party shall endeavor to use information and communication technologies that expedites procedures for the release of goods, including the submission and processing of information and data before arrival of the shipment, as well as electronic or automated systems for risk management and targeting.
Article 4.7. Express Shipments
Each Party shall adopt or maintain expedited customs procedures for express shipments while maintaining appropriate customs control and selection. These procedures shall:
(a) provide for a separate and expedited customs procedure for express shipments;
(b) provide for information required to release an express shipment to be submitted and processed electronically before the shipment arrives;
(c) allow submission of a single manifest covering all goods contained in an express shipment, through, if possible, electronic means;
(d) to the extent possible, provide for the release of certain goods with a minimum of documentation;
(e) under normal circumstances, provide for express shipments to be released as soon as possible after submission of the necessary customs documents, provided the shipment has arrived;
(f) apply to shipments of any weight or value recognising that a Party may require formal entry procedures as a condition for release, including declaration and supporting documentation and payment of customs duties, based on the good’s weight or value, and
(g) provide that, under normal circumstances, no customs duties will be assessed on express shipments valued at or below a fixed amount set under the Party’s law (2).
Article 4.8. Risk Management
1. Each Party shall adopt or maintain a risk management system for customs control.
2. Each Party shall concentrate customs control on high-risk consignments and expedite the release of low-risk consignments. Each Party may also select, on a random basis, consignments for such controls as part of its risk management.
3. Each Party shall base risk management on an assessment of risk through appropriate selectivity criteria.
4. In order to strengthen their risk management systems, the Parties may adopt cooperation programmes that are based on best practices established between them and in accordance with the Agreement between the Government of the United Arab Emirates and the Government of the Republic of Chile on Co-Operation and Mutual Assistance in Customs signed on 27 September 2019, and its amendments (hereinafter CMAA) upon the entry into force of the CMAA.
Article 4.9. Post-clearance Audit
1. With a view to expediting the release of goods, each Party shall adopt or maintain post-clearance audit to ensure compliance with customs and other related laws and regulations.
2. Each Party shall conduct post-clearance audits in a risk-based manner.
3. Each Party shall conduct post-clearance audits in a transparent manner. If an audit is conducted and conclusive results have been achieved, the Party shall, without delay, notify the person whose record has been audited of the results, the reasons for the result, and the rights and obligations of that person.
4. The Parties acknowledge that the information obtained in a post-clearance audit may be used in further administrative or judicial proceedings.
5. The Parties shall, wherever practicable, use the result of post-clearance audit in applying risk management.