Article 4.14. Indirect Materials
An indirect material shall be treated as an originating material without regard to where it is produced and its value shall be the cost registered in the accounting records of the producer of the good.
Section Section C: Territorial Requirements
Article 4.15. Consignment Criteria
1. An originating good of a Party shall be deemed to meet the consignment criteria when it is:
(a) transported directly from that Party; or
(b) transported through one or more non-Parties for the purpose of transit or temporary storage in warehouses in such non-Parties, provided that:
jw it does not undergo operations other than unloading, reloading, unpacking and repacking, labelling, or any other operation to preserve it in good condition;
(ij) âthe good has not entered the commerce of a non-Party, and;
(iii) the transit entry can be explained by geographical, economic or logistical reasons.
2. If an originating good of a Party does not meet the consignment criteria referred to in paragraph 1 that good shall not be considered an originating good of that Party.
3. Where an originating good of the exporting Party is imported through one or more non-Parties, the importing Party may require importers who claim the preferential tariff treatment for the good to submit appropriate evidence of compliance with paragraph 1, including:
(a) a copy of a through bill of lading or other contractual transport documents such as bills of lading, packing lists;
(b) a certificate or any other information given by the customs authorities of such non-Parties or other relevant entities, or;
(c) any other evidence related to the goods themselves.
Article 4.16. Exhibition Goods
1. Notwithstanding Article 4.15, an originating good of a Party imported into the other Party after an exhibition in the other Party or a non-Party, shall continue to qualify as an originating good on the condition that the good meets the requirements as set out in Section B (Originating Goods), and provided that it is shown to the satisfaction of the customs administration of the importing Party that:
(a) an exporter has dispatched the originating good from the territory of the exporting Party to the other Party or non-Party where the exhibition is held and has exhibited it there;
(b) the exporter has sold the originating good or transferred it to a consignee in the importing Party;
(c) the originating good has been consigned during the exhibition or immediately thereafter to the importing Party in the state in which it was sent for the exhibition;
(d) the exhibition is any trade, agriculture or crafts exhibition, fair or similar show or display which is not organised for private purposes in shops or business premises with the view to the sale of foreign goods; and
(e) the originating good has not entered the commerce of the other Party or non-Party, including where the originating good was exhibited under customs control.
2. For the purposes of implementing paragraph 1, the documentary evidence of origin shall be provided, if required, to the customs administration of the importing Party.
The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required.
Section Section D: Preferential Tariff Treatment
Article 4.17. Claim for Preferential Tariff Treatment
1. The importing Party may, in accordance with its laws and regulations, accept a claim for preferential tariff treatment at or after the time of importation of an originating good.
2. In order to claim preferential tariff treatment, the importer shall possess valid documentary evidence of origin. The importing Party may, in accordance with its laws and regulations, require presentation of the documentary evidence of origin at or after the time of importation.
3. An importing Party may require that an importer who presents documentary evidence of origin provides other documents or information to support the claim.
Article 4.18. Obligations Relating to Importation
1. Each Party shall provide that, if the importer has reason to believe that the documentary evidence of origin is based on incorrect information that could affect the accuracy or validity of the documentary evidence of origin, the importer shall correct the importation document in accordance with that Party's laws and regulations, and pay any customs duty and, if applicable, penalties owed.
2. No importing Party shall subject an importer to a penalty for making an invalid claim for preferential tariff treatment if the importer on becoming aware that such a claim is not valid and prior to discovery of the error by that Party, voluntarily corrects the claim in accordance with that Party's laws and regulations, and pays any applicable customs duty under the circumstances provided for in the Party's law.
Article 4.19. Denial of Preferential Tariff Treatment
1. The customs administration of the importing Party may deny a claim for preferential tariff treatment when:
(a) the good does not qualify as an originating good; or
(b) the importer, exporter or producer fails to comply with any of the relevant requirements of this Chapter.
2. If an importing Party denies a claim for preferential tariff treatment, on request it shall provide advice in writing to the importer that includes the reasons for the denial.
3. A Party shall not reject a claim for preferential tariff treatment for the sole reason that the invoice was issued in a non-Party.
4. A Party shall not reject a claim for preferential tariff treatment due only to minor errors or discrepancies in a documentary evidence of origin.!
5. For multiple goods declared under the same documentary evidence of origin, a
problem encountered with one of the goods listed shall not affect or delay the granting of
preferential tariff treatment and release of the remaining goods listed in the documentary
evidence of origin.
Article 4.20. Documentary Evidence of Origin
1. For the purposes of this Agreement, a documentary evidence of origin is any of:
(a) a certificate of origin made out in accordance with Annex 4-A;
(b) a declaration of origin made in accordance with Annex 4-B by an exporter registered or certified by the exporting Party in accordance with its laws and regulations.
2. Subparagraph (b) shall apply only after the exporting Party has notified the
importing Party, that it shall implement this subparagraph. Such notification may stipulate that subparagraph (a) shall cease to apply to the exporting Party.
! A minor error or discrepancy shall not invalidate a documentary evidence of origin if it is duly established that this document does in fact correspond to the imported goods.
Article 4.21. Exceptions from Documentary Evidence of Origin
Notwithstanding Article 4.20, neither Party shall require a documentary evidence of origin if:
(a) the customs value of the importation does not exceed 1000 Australian dollars for Australia, or 200 United States dollars for Indonesia, 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 documentary evidence 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 Partyâs laws governing claims for preferential tariff treatment under this Agreement.
Section Section E: Cooperation on Verification
Article 4.22. Origin Verification
1. The customs administration of the importing Party may verify the eligibility of a good for preferential tariff treatment in accordance with its laws, regulations and administrative practices by:
(a) instituting measures to establish the validity of the documentary evidence of origin;
(b) requesting further information relating to the origin of the good from the relevant importer of a good for which preferential tariff treatment was claimed; or
(c) issuing written requests to the provider of the documentary evidence of origin for further information relating to the origin of the good and notify such request, preferably by electronic means, to the exporting Party, for Australia the Department of Foreign Affairs and Trade and for Indonesia the Ministry of Trade.
2. A request for information in accordance with paragraph 1(c) shall not preclude the use of the verification visit provided for in Article 4.23.
3. The recipient of a request for information under paragraph 1 shall provide the information requested within a period of 60 days from the date the written request is made.
4. The customs administration of the importing Party shall provide written advice as to whether the goods are eligible for preferential tariff treatment to all the relevant parties within 60 days of receipt of information necessary to make a decision.
Article 4.23. Verification Visit
1. If the customs administration of the importing Party wishes to undertake a verification visit, it shall issue a written request to the provider of the documentary
evidence of origin at least 30 days in advance of the proposed verification visit.
2. The customs administration of the importing Party shall notify the exporting Party of the written request to undertake the verification visit.
3. The written request referred to in paragraphs 1 and 2 shall at a minimum include:
(a) the identity of the customs administration issuing the request;
(b) the name of the exporter or the producer of the exporting Party whose goods is subject to the verification visit;
(c) the date the written request is made; (d) the proposed date and place of the visit;
(e) the objective and scope of the proposed visit, including specific reference to the goods subject to the verification;
(f) a copy of the documentary evidence of origin; and
(g) the names and titles of the officials of the customs administration or other relevant authorities of the importing Party who will participate in the visit.
4. The provider of the documentary evidence of origin, if they are not the exporter or producer, shall notify the exporter or producer of the intended verification visit by the customs administration or other relevant authorities of the importing Party and request the exporter or producer to:
(a) permit the customs administration or other relevant authorities of the importing Party to visit their premises or factory; and
(b) provide information relating to the origin of the good. 5. The provider of the documentary evidence of origin, if they are not the exporter
or producer, shall advise the exporter or producer that, should they fail to respond by a specified date, preferential tariff treatment may be denied.
6. The provider of the documentary evidence of origin shall advise the customs administration of the importing Party within 30 days of the date of the written request from the customs administration of the importing Party whether the exporter or producer has agreed to the request for a verification visit.
7. The customs administration of the importing Party shall not visit the premises or factory of any exporter or producer in the territory of the exporting Party without written prior consent from the exporter or producer.
8. The customs administration of the importing Party shall complete any action to verify eligibility for preferential tariff treatment and make a decision within 150 days of the date of the request to the provider of the documentary evidence of origin under paragraph 1, provided that all information necessary to make a decision has been provided. The customs administration of the importing Party shall provide written advice as to whether goods are eligible for preferential tariff treatment to the relevant parties within 20 days of the decision being made.
Section Section F: Final Provisions
Article 4.24. Goods In Transport or Storage
In accordance with Article 4.17, the customs administration of the importing Party shall grant preferential tariff treatment for an originating good of the exporting Party which, on the date of entry into force of this Agreement:
(a) and subject to the laws and regulations of the importing Party, has not entered the commerce of the Party, including an originating good stored in a warehouse under Customs control; or
(b) is in the process of being transported from the exporting Party to the importing Party.
Article 4.25. Review and Appeal
The importing Party shall grant the rights of review and appeal in matters relating to the determination of origin under this Chapter in accordance with Article 5.8 (Review and Appeal) of Chapter 5 (Customs Procedures).
Article 4.26. Record Keeping
1. Each Party shall require that:
(a) an exporter shall maintain for not less than five years from the date of exportation, or for such longer period as the law of the exporting Party may provide, all records relating to the origin of a good for which preferential tariff treatment is claimed in the importing Party, including the documentary evidence of origin relevant to the good, or a copy thereof; and
(b) an importer claiming preferential tariff treatment shall maintain, for not less than five years after the date of importation of a good, all records relating to the importation of the good, including the documentary evidence of origin relevant to the good, or a copy thereof.
2. A person who certifies origin shall maintain for not less than three years from the date of issuance all records necessary to demonstrate that the good is originating.
3. Such records may be in electronic form.
Article 4.27. Confidentiality Each Party Shall Maintain the Confidentiality of the Information Collected In Accordance
with this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information.
Article 4.28. Sub-Committee on Rules of Origin
1. For the purposes of the effective and uniform implementation of this Chapter, the Parties hereby establish a Sub-Committee on Rules of Origin (ROO Sub-Committee).
2. The ROO Sub-Committee shall consist of government representatives of the Parties. It shall meet at the formal request of either of the Parties.
3. The functions of the ROO Sub-Committee shall include:
(a) monitoring the implementation and administration of this Chapter;
(b) discussion of any issue that may have arisen in the course of implementation, including any matters that may have been referred to the ROO Sub-Committee by the Goods Committee established in accordance with Article 2.11 (Committee on Trade in Goods) of Chapter 2 (Trade in Goods) or the Joint Committee;
(c) discussion of any proposed modifications of the rules of origin under this Chapter and Annex 4-C;
(d) a consultation on issues relating to rules of origin and administrative cooperation; and
(e) prior to the entry into force of an amended version of the Harmonized System, consultation to prepare updates to this Chapter and Annex 4-C to this Agreement that are necessary to reflect changes to the Harmonized System.
4. The Sub-Committee may recommend economic cooperation activities to the Economic Cooperation Committee to ensure the effective implementation of this Agreement, and to enable the Parties to meet their international obligations.
Chapter 5. CUSTOMS PROCEDURES
Article 5.1. Definitions for the Purposes of this Chapter:
customs law means such laws and regulations administered and enforced by the customs administration of each Party concerning the importation, exportation, and transit/transshipment of goods;
customs procedures means the treatment applied by the customs administration of a Party to goods which are subject to that Party's customs law; and
temporary admission means customs procedures under which certain goods (including means of transport) can be brought into a Party's territory conditionally relieved, totally or partially, from payment of import duties and taxes and without application of import prohibitions or restrictions of an economic character; such goods (including means of transport) must be imported for a specific purpose and must be intended for re-exportation within a specified period and without having undergone any change except normal depreciation due to the use made of them.
Article 5.2. Objectives
The objectives of this Chapter are to:
(a) ensure predictability, consistency and transparency in the application of customs laws, regulations and procedures of the Parties;
(b) promote efficient, economical administration of customs procedures and the expeditious clearance of goods;
(c) to the extent possible, simplify and harmonise customs procedures;
(d) enhance cooperation between the customs administrations of the Parties; and
(e) facilitate trade between the Parties.
Article 5.3. Scope
This Chapter shall apply, in accordance with the respective laws and regulations of the Parties, to customs procedures applied to goods traded between the Parties.
Article 5.4. Customs Procedures and Trade Facilitation
1. Each Party shall ensure that its customs procedures and practices are administered to:
(a) facilitate trade in a predictable, impartial, uniform and transparent manner, including through the expeditious clearance of goods; and
(b) avoid arbitrary and unwarranted procedural obstacles.
2. Customs procedures of each Party shall conform, where possible and to the extent permitted by its respective laws and regulations, to international standards and recommended practices established by the World Customs Organization and under other relevant international agreements to which the Parties are party.
3. The customs administration of each Party shall review its customs procedures with a view to facilitating trade.
Article 5.5. Customs Cooperation
1. The customs administration of each Party shall endeavour to assist the customs administration of the other Party, in relation to the implementation and operation of this Chapter and other customs matters as the Parties may agree.
2. Each Party shall endeavour to provide the customs administration of the other Party with timely notice of any significant modification of its customs laws or customs procedures that is likely to substantially affect the operation of this Agreement.
3. The Parties shall encourage their customs administrations to consult with each other regarding significant customs issues that affect trade between the Parties.
4. The customs administrations of the Parties shall endeavour to establish or maintain channels of communication for customs cooperation, including by establishing contact points, in order to facilitate the rapid and secure exchange of information and improve coordination on importation issues.
Article 5.6. Publication and Enquiry Points
1. Each Party shall make publicly available, including online, its customs laws, regulations and general administrative procedures applied or enforced by its customs administration, not including law enforcement procedures and internal operational guidelines.
2. Each Party shall designate or maintain one or more enquiry points to address enquiries from interested persons concerning customs matters and shall make information on how to make such enquiries publicly available online. Such customs matters shall include but not be limited to:
(a) the application of duty drawback, deferral or other types of relief that teduce, refund or waive customs duties;
(b) applied rates of duties and taxes of any kind imposed on or in connection with importation or exportation;
(c) rules for the classification or valuation of products for customs purposes; (d) penalty provisions for breaches of import, export or transit formalities; and (e) procedures for appeal or review.
3. To the extent practicable and in a manner consistent with its laws and regulations, each Party shall provide interested persons the opportunity to and a reasonable period of time in which to comment on the proposed introduction or amendment of customs laws and procedures .
Article 5.7. Advance Ruling
1. Each Party, through its customs administration or other relevant authorities, on the application of a person described in paragraph 2(a) or 2(b), shall provide in writing advance rulings in respect of:
(a) tariff classification;
(b) questions arising from the application of the principles of the Customs Valuation Agreement, and;
(c) origin of goods.
2. Where available, each Party shall adopt or maintain procedures for advance rulings, which shall:
(a) provide that an importer in its territory may apply for an advance ruling before the importation of the goods in question;
(b) provide that an exporter or producer in the territory of the other Party may apply for an advance ruling before the importation of the goods in question;
(c) require that an applicant for an advance ruling provide a detailed description of the goods and all relevant information needed to process an application for an advance ruling;
(d) provide that its customs administration may, at any time during the course of an evaluation of an application for an advance ruling, request that the applicant provide additional information within a specified period;
(e) provide that any advance ruling be based on the facts and circumstances presented by the applicant, and any other relevant information in the possession of the decision-maker;
(f) provide that an advance ruling be issued to the applicant expeditiously, within the period specified in the laws, regulations or administrative determinations of each Party; and
(g) provide in writing the reasons for the decision.
3. A Party may reject requests for an advance ruling where the additional information requested by it in accordance with paragraph 2(d) is not provided within the specified period.
4. Subject to paragraphs 1 and 5, and where available, each Party shall apply an advance ruling to all importations of goods described in that ruling imported into its territory for three years from the date of that ruling, or such other period as specified in the laws, regulations or administrative determinations of that Party.
5. A Party may modify or revoke an advance ruling upon a determination that the ruling was based on an error of fact or law (including human error), the information provided is false or inaccurate, if there is a change in its laws and regulations which is consistent with this Agreement, or there is a change in a material fact or circumstance on which the ruling is based.
6. If an importer claims that the treatment accorded to an imported good should be governed by an advance ruling, the customs administration may evaluate whether the facts and circumstances of the importation are consistent with the facts and circumstances upon which an advanced ruling was based.
7. Each of the provisions of paragraphs 1 and 2 shall only apply between the Parties, when a Party has the capacity to implement that provision, and when provided for under the laws and regulations of that Party.