(v) a combination of two or more operations referred to in subparagraphs (a) through (u).
2. All operations carried out in a Party on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.
Article 3.7. ACCUMULATION
Originating materials from the territory of a Party, incorporated in the production of a good in the territory of the other Party shall be considered to originate in the territory, of the other Party.
Article 3.8. DE MINIMIS
1. A good that does not undergo a change in tariff classification pursuant to Article 3.4 and Annex 3-A in the final process of production shall be considered as originating if:
(a) for goods except for those falling within Chapters 1 through 14 and Chapters 50 through 63 of the HS, the value of all non-originating materials used in its production, which do not undergo the required change in tariff classification, does not exceed ten percent of the FOB value of the good;
(b) for goods falling within Chapters 50 through 63 of the HS, the total weight of non-originating basic textile materials used in its production, which do not undergo the required change in tariff classification, does not exceed seven percent of the total weight of all the basic textile materials used; and
(c) the good meets all other applicable criteria set forth in this Chapter for qualifying as an originating good.
2. The value of such non-originating materials shall be included in the value of non- originating materials for any applicable regional value content requirement for the good.
Article 3.9. ACCESSORIES, SPARE PARTS AND TOOLS
Accessories, spare parts or tools delivered with a good that form part of the good's standard accessories, spare parts or tools, shall be treated as originating goods if the good is an originating good, and shall be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification, provided that:
(a) the accessories, spare parts or tools are not invoiced separately from the good;
(b) the quantities and value of the accessories, spare parts or tools are standard trade practice for the good in the domestic market of the exporting Party; and
(c) if the good is subject to a regional value content requirement, the value of the accessories, spare parts, or tools shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
Article 3.10. PACKAGING MATERIALS AND CONTAINERS FOR RETAIL SALE
Packaging materials and containers in which a good is packaged for retail sale shall, if classified with the good, be disregarded in determining whether all the non-originating materials used in the production of the good undergo the applicable change in tariff classification, and, if the good is subject to a regional value content requirement, the value of such packaging materials and containers shall be taken into account as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
Article 3.11. PACKING MATERIALS AND CONTAINERS FOR SHIPMENT
Packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether:
(a) the non-originating materials used in the production of the good undergo an applicable change in tariff classification; and
(b) the good satisfies a regional value content requirement.
Article 3.12. FUNGIBLE MATERIALS
1, Where identical and interchangeable originating and non-originating materials are used in the manufacture of a product, those materials shall be physically segregated, according to their origin, during storage.
2. A producer facing considerable costs or material difficulties in keeping separate stocks of identical and interchangeable originating and non-originating materials used in the manufacture of a product, may use the so-called âaccounting segregationâ method for managing stocks.
3. The accounting method shall be recorded, applied and maintained in accordance with Generally Accepted Accounting Principles applicable in the Party in which the product is manufactured. The method chosen shall:
(a) permit a clear distinction to be made between originating and non-originating materials acquired and/or kept in stock; and
(b) guarantee that no more products receive originating status than would be the case if the materials had been physically segregated.
Article 3.13. PRINCIPLE OF TERRITORIALITY
1. Except as provided for in Articles 3.7 and 3.14, the conditions for acquiring originating status set out in Articles 3.2 through 3.12 shall be fulfilled without interruption in a Party.
2. Except as provided for in Article 3.7, an originating product exported from a Party to a non-Party shall, when returned, be considered to be non-originating unless it can be demonstrated to the satisfaction of the customs authority in accordance with laws and regulations of the importing Party concerned that:
(a) the returning product is the same as that exported; and
(b) the returning product has not undergone any operation beyond that necessary to preserve it in good condition while being exported.
Article 3.14. EXEMPTION FROM THE PRINCIPLE OF TERRITORIALITY
Notwithstanding the provisions of Article 3.13, the acquisition of originating status in accordance with the conditions set out in Articles 3.2 through 3.12 shall not be affected by working or processing carried out in the area agreed by both Parties in the Exchange of Notes on materials exported from the Party concerned and subsequently re-imported there, provided that the conditions set out in Annex 3-B are fulfilled.
Article 3.15. DIRECT CONSIGNMENT
1. Preferential tariff treatment shall be applied to a good satisfying the requirements of this Chapter and which is transported directly between the territories of the exporting Party and the importing Party.
2. Notwithstanding paragraph 1, a good of which transport involves transit through one or more intermediate third countries, other than the territories of the exporting Party and the importing Party, shall be considered to be consigned directly, provided that:
(a) the goods have not entered into trade or consumption there;
(b) the goods have not undergone any operation there other than unloading and reloading or any operation required to keep them in good condition; and
(c) the goods have remained under the customs control in the country of transit.
Article 3.16. INTERPRETATION AND APPLICATION
For the purposes of this Chapter:
(a) the basis for tariff classification in this Chapter is the HS;
(b) in applying the Customs Valuation Agreement for the determination of the origin of a good under this Chapter:
(i) the principles of the Customs Valuation Agreement shall apply to domestic transactions, with such modifications as may be required by the circumstances, as would apply to international transactions;
(ii) the provisions of this Chapter shall take precedence over the Customs Valuation Agreement to the extent of any difference; and
(iii) the definitions in Article 3.1 shall take precedence over the definitions in the Customs Valuation Agreement to the extent of any difference; and
(c) all costs referred to in this Chapter shall be recorded and maintained in accordance with the Generally Accepted Accounting Principles applicable in the territory of the Party in which the good is produced.
Article 3.17. CONSULTATIONS AND MODIFICATIONS
1. The Parties shall consult and cooperate to ensure that this Chapter is applied in an effective and uniform manner.
2. Pursuant to Article 15.2.2(c) (Joint Committee and Review), the Parties shall consult to review, no later than three years after the date of entry into force of this Agreement, the rules of origin and discuss necessary amendments or modifications to this Chapter and its Annexes, including Article 3.4.1 and Product Specific Rules provided in Annex 3-A, taking into account developments in technology, production processes, and other related matters including the recommended amendments to the HS.
Chapter FOUR. ORIGIN PROCEDURES
Article 4.1. DEFINITIONS
For the Purposes of this Chapter:
customs authority means the authority that is responsible under the law of a Party for the administration and application of customs laws and regulations;
determination of origin means a determination as to whether a good qualifies as an originating good in accordance with Chapter Three (Rules of Origin);
identical goods means goods that are same in all respects, including physical characteristics and quality, irrespective of minor differences in appearance that are not relevant to a determination of origin of those goods under Chapter Three (Rules of Origin);
indirect materials means "indirect materials" as defined in Article 3.1 (Definitions);
materials means "materials" as defined in Article 3.1 (Definitions);
producer means "producer" as defined in Article 3.1 (Definitions); and
production means "production" as defined in Article 3.1 (Definitions).
Article 4.2. ISSUING AUTHORITIES OF CERTIFICATE OF ORIGIN
1. The Certificate of Origin shall be issued by the Government designated authorities (hereinafter referred to as "Issuing Authorities") of the exporting Party as provided in Annex 4-A.
2. Each Party shall inform the other Party of the names and addresses of the authorised officials of its respective Issuing Authorities and also provide the original sets of their specimen signatures and specimen of official seals. Any change in names, addresses, specimen signatures or official seals shall be promptly informed to the other Party.
3. For the purposes of verifying the requirements for preferential tariff treatment, the Issuing Authorities shall have the right to request for any supporting documentary evidence or to carry out any verification considered appropriate, consistent with its laws or practices.
Article 4.3. APPLICATION FOR CERTIFICATE OF ORIGIN
1. The exporter or the producer of the goods qualified for preferential tariff treatment shall apply in writing or electronically, as the case may be, to the relevant Issuing Authorities requesting for pre-export verification of the origin of the goods. The Issuing Authorities may conduct pre-export verification. The result of the verification, subject to review periodically or whenever appropriate, shall be accepted as the supporting evidence in verifying the origin of the said goods to be exported thereafter. The pre-export verification may not apply to the goods of which, by their nature, origin can be easily verified.
2. At the time of carrying out the formalities for exporting the goods under preferential tariff treatment:
(a) the exporter or his or her authorised representative shall submit a written application for a Certificate of Origin together with appropriate supporting documents proving that the goods to be exported qualify for the issuance of the Certificate of Origin; or
(b) where an exporter is not the producer of the good, the application for a Certificate of Origin may be on the basis of the producer's origin declaration that the goods qualify as originating goods, including the result of pre-export verification pursuant to paragraph 1.
3. The Issuing Authorities shall, to the best of their competence and ability, carry out proper examination upon each application for a Certificate of Origin to ensure that:
(a) the application for the Certificate of Origin is duly completed and signed by the exporter or its authorised signatory;
(b) the origin of the goods is in conformity with Chapter Three (Rules of Origin);
(c) the other statements of the Certificate of Origin correspond to supporting documentary evidence submitted; and
(d) export of multiple items declared on a single Certificate of Origin shall be allowed, provided that each item qualifies as originating separately in its own right.
Article 4.4. ISSUANCE OF a CERTIFICATE OF ORIGIN
1. A Certificate of Origin shall:
(a) be in a printed format or such other medium including electronic format;
(b) be completed in English in conformity with the specimen and the instructions contained therein as set out in the Annex 4-B; and
(c) comprise one original and three copies.
2. The Issuing Authorities, while retaining the duplicate, shall provide the original and remaining two copies to the exporter. The original shall be forwarded, together with the triplicate, by the exporter to the importer for submission to the customs authority at the port or place of importation. The triplicate shall be retained by the importer. The quadruplicate shall be retained by the exporter.
3. No erasures and superimpositions shall be allowed on the Certificate of Origin. Any alteration shall be made by striking out the errors and making any addition required. Such alterations shall be approved and certified by an official authorised to sign the Certificate of Origin issued by the relevant Issuing Authorities. Unused spaces shall be crossed out to prevent any subsequent addition.
4. The Certificate of Origin shall be issued at the time of exportation, or within seven working days from the date of shipment whenever the goods to be exported can be considered originating in that Party. Under exceptional cases where a Certificate of
Origin has not been issued at the time of exportation or within seven working days from the date of shipment due to involuntary errors or omissions, or any other valid reasons, the Certificate of Origin may be issued retrospectively but not later than one year from the date of shipment, bearing the words "ISSUED RETROSPECTIVELY" in Remarks box of the Certificate of Origin.
5. In the event of theft, loss or destruction of a Certificate of Origin, the exporter may apply in writing to the Issuing Authorities which issued it for a certified true copy of the original and the triplicate to be made on the basis of the export documents in their possession bearing the endorsement of the words "CERTIFIED TRUE COPY", (in lieu of the original certificate) in Remarks box of the Certificate of Origin. This copy shall bear the date of the original Certificate of Origin. The certified true copy of a Certificate of Origin shall be issued not later than one year from the date of issuance of the original Certificate of Origin and on the condition that the exporter provides to the relevant Issuing Authorities the quadruplicate.
Article 4.5. VALIDITY OF CERTIFICATE OF ORIGIN
1. A Certificate of Origin shall be valid for 12 months from the date of issue in the exporting Party, and the claim for preferential tariff treatment shall be made within the said period to the customs authority of the importing Party.
2. A Certificate of Origin, which is submitted to the customs authority of the importing Party after the said expiration date specified in paragraph 1, may be accepted for the purpose of claiming preferential tariff treatment, in accordance with the procedures applicable in that Party where the failure to submit these documents by the final date is due to exceptional circumstances.
3. In all cases, the customs authority in the importing Party may accept such Certificate of Origin, provided that the goods have been imported before the expiration date of the said Certificate of Origin in accordance with the procedures applicable in that Party.
4. A single Certificate of Origin may be used for:
(a) a single shipment of goods that results in the filing of one or more entries on the importation of the goods into the territory of a Party; or
(b) more than one shipment of goods that results in the filing of one entry on the importation of the goods into the territory of a Party.
Article 4.6. INVOICING BY a NON-PARTY OPERATOR
1. The customs authority in the importing Party may accept a Certificate of Origin in cases where the sales invoice is issued by an operator located in a third country or by an exporter for the account of the said operator, provided that the good meets the requirements of Chapter Three (Rules of Origin).
2. The exporter of the goods shall indicate "third country invoicing" and such information as name, address and country of the operator issuing the invoice in the Certificate of Origin.
Article 4.7. DISCREPANCIES IN THE CERTIFICATE OF ORIGIN
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 purpose 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 said goods.
Article 4.8. CLAIMS FOR PREFERENTIAL TARIFF TREATMENT
1. Except as otherwise provided for in this Chapter, each Party shall require an importer in its territory that claims preferential tariff treatment for a good imported into its territory from the territory of the other Party to:
(a) request preferential tariff treatment at the time of importation of an originating good, if required by the customs authority of the importing Party;
(b) make a written declaration, if it deems necessary, that the good qualifies as an originating good;
(c) submit the original Certificate of Origin to the customs authority of the importing Party at the time of importation, if required by the customs authority of the importing Party;
(d) provide, on the request of that Party's customs authority, any other documentation relating to the importation of the good; and
(e) promptly make a corrected declaration in a manner required by the customs authority of the importing Party, subject to the customs laws of the importing Party and pay any duties along with interest and other charges owing, where the importer has reason to believe that a Certificate of Origin on which a declaration was based contains information that is not correct.
2. Each Party may in accordance with its laws and regulations, provide that, where a good would have qualified as an originating good when it was imported into its territory, the importer of the good may, within a period of at least one year or for such longer period specified by the importing Party's laws and regulations after the date on which the good was imported, apply for a refund of any excess duties paid as the result of the good not having been accorded preferential tariff treatment.
3. For the purposes of paragraph 1(d), the customs authority of the importing Party may tequire an importer to demonstrate that the good was shipped in accordance with Article 3.15 (Direct Consignment) by providing with:
(a) bills of lading or waybills indicating the shipping route and all points of shipment and transhipment prior to the importation of the good; and
(b) where the good is shipped through or transhipped in a non-Party, a copy of the customs control documents indicating that the good remained under customs control while in that non-Party.
4. Where the customs authority of the importing Party determines that a Certificate of Origin is illegible, defective on its face or has not been completed pursuant to Article 4.4,
or discovers that discrepancies exist between the Certificate of Origin and the written declaration, the importer will be granted a period of not less than five working days, but not exceeding 30 working days from the date of request by the customs authority to provide a copy of the corrected Certificate of Origin.
5. An importer that makes a corrected declaration of origin pursuant to paragraph 1(e) and pays any duties owing, will not be subject to penalties under Article 4.16, in accordance with each Party's laws and regulations.
Article 4.9. WAIVER OF CERTIFICATE OF ORIGIN
Goods sent as small packages from private persons to private persons or forming part of travellersâ personal luggage may be admitted as originating goods without requiring the submission of a Certificate of Origin, in accordance with each Partyâs laws and regulations.
Article 4.10. RECORD KEEPING REQUIREMENT
1. The application for a Certificate of Origin and all documents related to origin shall be retained by the Issuing Authorities, exporter and producer for not less than five years from the date of issuance of the Certificate of Origin.
2. A copy of the Certificate of Origin and all relevant import documents shall be retained by an importer for not less than five years from the date of importation.
3. An importer, exporter or producer may choose to maintain records specified in paragraphs 1 and 2 in any medium that allows for prompt retrieval, including, but not limited to, digital, electronic, optical, magnetic or hard copy.
4. Importers, exporters and producers that are required to maintain documents related to origin pursuant to paragraphs 1 and 2 will make those documents available for inspection by an officer of the customs authority or Issuing Authorities of a Party conducting a verification visit and provide facilities for inspection thereof.
Article 4.11. VERIFICATION BY COMPETENT AUTHORITY OF EXPORTING PARTY
1. The importing Party may, 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, request the Issuing Authorities (1) of the exporting Party for a retroactive check. The Issuing Authorities shall conduct such check subject to the following procedures:
(a) the request for a retroactive check shall be accompanied with the Certificate of Origin concerned and shall specify the reasons and any additional information suggesting that the particulars given on that Certificate of Origin may be inaccurate, unless the retroactive check is requested on a random basis;
(b) the Issuing Authorities receiving a request for a retroactive check shall respond to the request promptly and reply within three months after receipt of the request;
(c) the customs authority of the importing Party may suspend the provision of preferential tariff 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 subject to import prohibition or restriction and that there is no suspicion of fraud; and
(d) the Issuing Authorities shall promptly transmit the results of the verification process to the customs authority of the importing Party which shall then determine whether or not the subject good is originating. The retroactive check process, including the process of notifying the Issuing Authorities of the exporting Party of the results of determination on whether the subject good is originating or not, should be completed within six months. While the process of the retroactive check is being undertaken, subparagraph (c) shall be applied.
2. The customs authority of the importing Party may request an importer for information or documents relating to the origin of imported goods in accordance with its laws and regulations before requesting the retroactive check pursuant to paragraph 1.
Article 4.12. VERIFICATION BY CUSTOMS AUTHORITY OF IMPORTING PARTY
1. If the customs authority of the importing Party is not satisfied with the results of the retroactive check pursuant to Article 4.11, it may, under exceptional circumstances, conduct a verification in the exporting Party by means of:
(a) written requests for information and documentation from the exporter or producer;
(b) written questionnaires to the exporter or producer; and/or
(c) verification visits to the premises of an exporter or producer in the exporting Party.
2. The written request or questionnaire pursuant to paragraph 1(a) or (b) will indicate that the time period the exporter or producer has to complete and return the questionnaire or the information and documentation required will be 30 days or for such longer period as the Parties may agree, from the date of its receipt.
3. When the customs authority of a Party has received the completed questionnaire or the information and documentation required pursuant to paragraph 1(a) or (b), and considers that it needs more information to determine the origin of the goods subject to verification, it may request additional information from the exporter or producer.
4. Where an exporter or producer fails to return a duly completed questionnaire or fails to provide the information and documentation required within the period referred to in paragraph 2, the importing Party may deny preferential tariff treatment to the good in question after providing at least 30 days written notice to the exporter or producer to provide written comments or additional information that will be taken into account prior to completing the verification.
5. Prior to conducting a verification visit pursuant to paragraph 1(c):
(a) an importing Party shall deliver a written notification of its intention to conduct the verification visit simultaneously to:
(i) the producer or exporter whose premises are to be visited;
(ii) the Issuing Authorities of the Party in the territory of which the verification visit is to occur;
(iii) the customs authority of the Party in the territory of which the verification visit is to occur; and
(iv) the importer of the good subject to the verification visit;
(b) the written notification mentioned in subparagraph (a) shall be as comprehensive as possible and shall include, among others:
(i) the name of the customs authority issuing the notification;
(ii) the name of the producer or exporter whose premises are to be visited;
(iii) the proposed date of the verification visit;