(i) Manufacturing operations conducted in the territory of one or more Parties, or
(ii) Used goods collected in the territory of one or more Parties, provided that such waste or scrap is fit only for the recovery of raw materials, and
(j) Goods obtained or produced in the territory of one or more Parties exclusively from the goods referred to in sub-paragraphs (a) to (i).
Article 4.4. Regional Value Content
1. The regional value content of a good shall be calculated on the basis of the FOB value or on the net cost, at the choice of the producer or exporter of the good, in the following way:
RVC = FOB - VNM/FOB x 100
Where:
RVC: is the regional value content of a good expressed as a percentage;
FOB: is the free on board value of the goods, and
VNM: is the value of non-originating materials.
Or
RVC = NC - VNM/NC x 100
Where:
RVC: is the regional value content, expressed as a percentage;
NC: is the net cost of the goods, and
VNM: is the value of non-originating materials used by the producer in the production of the good, determined in accordance with paragraph 2.
2. For purposes of calculating the RVC in paragraph 1:
(a) The value of non-originating materials shall be:
(i) The CIF value of the material at the time of importation, or
(ii) In the case of a material acquired in the territory where the good is produced, the price paid or payable, regardless freight, insurance, packing costs and all other costs incurred in transporting the material from the store of the supplier to the place where the producer is located, and
(b) The values referred to in sub-paragraph (a) shall be determined in accordance with the Agreement on Customs Valuation.
Article 4.5. Intermediate Materials
When an intermediate material, referred to as such, is used in the production of a good, the non-originating materials contained in said intermediate material shall not be taken into account for the purpose of the qualification and determination of the origin of the good.
Article 4.6. Indirect Materials
Indirect materials shall be considered originating, regardless of the place where they are produced.
Article 4.7. Minimal Operations or Processes That Do Not Confer Origin
1. The following minimal processes or operations do not confer origin:
(a) Operations to ensure that the goods are preserved in good condition during transport and storage, such as drying, freezing, ventilation, refrigeration;
(b) Selection, classification, screening, washing, cutting, folding, rolling, unrolling, sharpening, grinding, slicing;
(c) Cleaning, including the removal of rust, grease, paint or other coatings; (d) Painting and polishing operations;
(e) Placing in bottles, cans, jars, bags, cases, boxes, fixing on cardboard or boards and all other packaging operations;
(f) Packing, changes in packing, unpacking, crating and uncrating operations, and the breaking up and assembly of consignments;
(g) Dilution in water or other substances that do not materially alter the characteristics of the goods, and
(h) The combination of two or more operations of those listed in sub- paragraphs (a) through (g).
2. The provisions of this Article shall prevail over the specific requirements of origin described in Annex 4.2.
Article 4.8. Accumulation
1. Originating materials from the territory of one or more Parties, incorporated in a good in the territory of other Party, shall be considered as originating in the territory of such other Party, provided they comply with the applicable provisions of this Chapter.
2. A good shall be considered originating, where it is produced in the territory of one or more Parties by one or more producers, provided they meet the applicable provisions of this Chapter.
3. Paragraphs 1 and 2 shall be applied only when the customs tariff of such good, that results from tariff elimination, is 0% in all Parties.
Article 4.9. De Minimis
1. A good that does not undergo a change in tariff classification is considered as originating if:
(a) The value of all non-originating materials used in its production that do not undergo the required change in the tariff classification does not exceed 10% of the FOB value of the goods. The goods shall comply with all other applicable criteria provided in this Chapter.
(b) When the good referred to in paragraph 1 is subject to a requirement of regional value content, the value of the materials non- originating will be included in the calculation of regional value content of the good.
2. For a good classified in Chapters 1 to 24 of the Harmonized System (HA), the percentage of the De Minimis provided in paragraph 1 may only apply when the non- originating materials used in its production are different from the final good.
3. For a good classified in Chapters 50 through 63 of the Harmonized System (HS) the provisions of paragraph 1 (a) will not apply. In this case, the good will be considered originating if the weight of all the fibers or yarns of the non-originating component that determines the tariff classification of the good, that do not meet the requirement of change of applicable tariff classification, does not exceed the 10% of the total weight of the goods.
Article 4.10. Fungible Materials and Goods
1. For purposes of determining whether a good is originating where in its production originating and non- originating fungible materials are used and they physically mixed or combined, the origin of the materials may be determined by:
(a) The physical separation of each of the materials, or
(b) The use of a method for managing stocks recognized in the Generally Accepted Accounting Principles of the Party in which the production is performed.
2. When originating and non-originating fungible goods are physically mixed or combined and, prior to their exportation do not undergo any production process or any other operation in the territory of the Party in which they were physically mixed or combined, other than the unloading, reloading or any other necessary operation to keep the goods in good condition or to transport them to the territory of other Party, the origin of the goods may be determined by:
(a) The physical separation of each of the materials, or
(b) The use of a method for managing stocks recognized in the Generally Accepted Accounting Principles of the Party in which such production is performed.
3. Once one of the methods of inventory control has been selected, it must be used during the fiscal year of the Party in which the production is performed.
Article 4.11. Accessories, Spare Parts, Tools, and Instructional Materials or Information
1. Where a good complies with the appropriate change in tariff classification, the accessories, spare parts, tools and instructional or information materials supplied with such goods shall be considered an as part thereof, and shall not be taken into account for the qualification and determination of origin.
2. Where a good is subject to the requirement of regional value content, the value of the accessories, spare parts, tools and instructional or information materials shall be considered as originating or non-originating materials, as the case may be, in calculating the regional value content of the good.
3. For the cases referred to in paragraphs 1 and 2: (a) The accessories, spare parts, tools and instructional or information materials shall be classified with the good and not be invoiced separately, and
(b) The quantities and value of the accessories, spare parts, tools and instructional or information materials shall be the customary for the good.
Article 4.12. Treatment of Containers and Packaging Materials for Retail
1. When a good is subject to the criterion of change of its tariff classification, under the provisions of Appendix 4.2, the containers and packaging materials classified together with the packaged goods, shall not be considered in the qualification and determination of origin.
2. When a good is subject to the requirement of regional value content, the value of the containers and packaging materials for retail, classified together with the good, shall be considered for the qualification and determination of the origin of the good as originating or non-originating, as applicable.
3. When a good is wholly obtained or entirely produced in the territory of one or more Parties in accordance with Article 4.2 (a), or is produced exclusively from originating materials in accordance with Article 4.2 (b), the containers and packaging materials classified together with the packaged good shall not be considered in the qualification and determination of origin.
Article 4.13. Packaging and Containers Materials for Shipment
Packaging materials and containers materials used for the transport of goods shall not be considered in the qualification and determination of the origin of the goods.
Article 4.14. Sets or Assortments
1. A set or assortment which is classified according to Rules 1 or 3 of the General Rules for Interpretation of the Harmonized System (HS) shall be considered originating when each one of the components of the set or assortment is originating.
2. Notwithstanding paragraph 1, where a set or assortment is composed of originating and non-originating goods, the set or assortment as a whole shall be considered originating provided that the value of non-originating goods does not exceed 12% of the total value of the set or assortment.
3. The provisions of this Article shall prevail over the specific rules of origin set forth in Exhibit 4.2.
Section B. Procedures Related to Origin
Article 4.15. Transit and Transshipment
1. For the goods to maintain their status of originating and benefit from preferential tariff treatment, they must have been shipped directly from the exporting Party to the importing Party. For this purpose, the goods that shall be deemed shipped directly are:
(a) The goods transported only through the territory of one or more Parties;
(b) The goods in transit through one or more countries that are not Party of this Additional Protocol, with or without temporary transhipment or storage, provided that:
(i) They do not undergo any operation outside the territory of the Parties other than unloading, reloading, breaking of bulk or any other operation necessary to preserve them in good conditions, and
(ii) Remain under the control of the customs authorities in the territory of a non-Party.
2. The importer may demonstrate compliance with paragraph 1 (b):
(a) In case of transit or transhipment, with transport documents, such as the air waybill, the bill of lading, the consignment note, or the multi-modal or combined transport document, as appropriate;
(b) In case of storage, with transport documents, such as the air waybill, the bill of lading, the consignment note, or the multi- modal or combined transport document, as appropriate, and the documents issued by the customs authority or other competent entity, in accordance with the laws of the country that is not Party, accrediting the storage or
(c) In the absence of the above, any other supporting documentation, issued by the customs authority or other competent authority, in accordance with the law of the country that is not Party.
Article 4.16. Exhibitions
1. Originating goods imported by another Party after its display in a non-Party country shall maintain its status of originating, and may be granted preferential tariff treatment, provided that they have remained under customs control in the territory of that non-Party country.
2. For purposes of applying paragraph 1, a certificate of origin shall be issued in accordance with Article 4.17. However, if the importing Party considers it necessary, it may request additional documentary evidence in connection with the exhibition, such as transport, customs or other documents.
Article 4.17. Certification of Origin
1. The importer may claim preferential tariff treatment based on a certificate of origin written or electronic (1) issued by the competent authority for issuing certificates of origin of the exporting party at the request of the exporter. The certificate of origin shall be issued not later than the date of shipment of the goods.
2. Notwithstanding paragraph 1, a certificate of origin may be issued after the date of shipment of the goods, provided that: (a) It has not been issued on the date of shipment due to errors, involuntary omissions or any other circumstances that may be considered justified in accordance with the laws of the exporting Party, or
(b) It is established to the satisfaction of the authority competent to issue certificate of origin that the certificate of origin issued was not accepted at the time of importation. The period of validity should be maintained as indicated on the certificate of origin issued in the first place.
3. For purposes of the issuance of the certificate of origin, the competent authority for issuing certificates of origin will consider the originating status of the goods in the territory of such authority. To that end, it may request any supporting evidence, pay visits to inspect the premises of the exporter or producer or perform any other control considered appropriate.
4. The certificate of origin shall have a single format as set out in Annex 4.17. Such format may be modified by agreement between the Parties. The certificate of origin must be properly completed in accordance with its instructions.
5. The certificate of origin shall be valid for one year from the date that it was issued. Such certificate of origin may cover the export of one or various goods to the territory of a Party and shall be issued on the date of issuance of the commercial invoice or after it.
6. The names and seals of the competent authorities to issue certificates of origin as well as the record of the names and signatures of the officials accredited for that purpose, shall be notified by each Party.
Article 4.18. Duplicate of Certificate of Origin
1. In case of theft, loss or destruction of a certificate of origin, the exporter may request in writing to the competent authority for issuing certificates of origin, a duplicate of the original, which will be issued on the basis of the documents in possession of the competent authority for issuing certificates of origin.
2. The phrase âDuplicate of the certificate of origin N°........... date of issue .......... shall be placed in the "comments" field. The validity of that certificate shall be reckoned from the date of issuance of the original certificate of origin.
Article 4.19. Billing by an Operator In a Country Non- Party
1. Goods complying with the provisions of this Chapter retain their originating status, even when they are billed by commercial operators of a non-Party country.
2. The certificate of origin shall indicate in the "comments" field when a good is invoiced by an operator of a non-Party country. In addition, the full name and legal address of the operator of the non-Party country shall be indicated.
Article 4.20. Errors of Form
Formal errors on a certificate of origin, such as typos, shall not cause the rejection of the certificate provided the errors do not create doubts on the accuracy f the information contained in that certificate.
Article 4.21. Exceptions
The certificate of origin shall not be required when:
(a) The customs value of the imported goods does not exceed U$1,000 (United States dollars) or its equivalent in the currency of the Importing Party, or a higher amount established by the importing Party, unless the importing Party considers that the importation is part of a series of imports carried out or planned with the purpose of evading compliance with the certification requirements set out in Section 4.17, or
(b) Is a good for which the importing Party in accordance with its legislation does not require that the importer submit a certification or information proving the origin.
Article 4.22. Obligations In Connection with Imports
1. Except for the provisions in Article 4.23, each Party shall require that the importer claiming preferential tariff treatment in its territory:
(a) Declare on the customs import document required by its legislation, and based on a certificate of origin, that the good qualifies as an originating good;
(b) Have the certificate of origin in its possession at the time of making the declaration referred to in sub-paragraph (a);
(c) Is in possession of the documents proving compliance with requirements of Article 4.15.2, when applicable;
(d) Provide the certificate of origin, as well as the documents referred to in sub-paragraph (c), when the customs authority request them and
(e) Present a rectified declaration and pay the applicable customs duty when it has reason to believe that the certificate of origin on which the declaration is based contains inaccurate information. The importer shall not be penalized if it voluntarily presents a rectified declaration, before the importing Party begins to exercise its powers of verification and control, in accordance with its laws and the provisions of this Chapter.
2. If an importer in its territory does not meet some of the applicable requirements in this Chapter, the customs authority of the importing Party may deny the preferential tariff treatment requested.
Article 4.23. Tariffs Return
When the importer had not applied for the preferential tariff treatment for the goods imported into its territory, it may, not later than one year after the date of importation, request to the customs authority of the importing Party the refund of customs duties paid in excess, provided the application is accompanied by:
(a) Awritten declaration stating that the good qualified as originating;
(b) The certificate of origin, and
(c) Any other documentation in connection with the importation of the good that the customs authority requests.
Article 4.24. Obligations In Connection with Exports
1. Each Party shall provide that:
(a) When an exporter has reason to believe that the certificate of origin contains inaccurate information, it shall communicate in writing to the competent authority for issuing certificates of origin and to the importer about any changes that may affect the accuracy or validity of such certificate, and
(b) Ifan exporter submitted a false certificate of origin or information, and based on these, the goods exported to the territory of another Party qualified as originating goods, the exporter shall be subject to sanctions in its territory for contravening legislation.
2. No Party shall impose penalties on an exporter for providing inaccurate information if it voluntarily notifies this in writing to the competent authority for issuing certificates of origin, before the importing Party begins to exercise its powers of verification and control, in accordance with its laws and the provisions of this Chapter.
Article 4.25. Record Keeping Requirements
1. The competent authority for issuing certificates of origin shall keep a copy of the certificate of origin for a minimum of five years, from the date of issuance. Such file shall include all the records that provided the basis for the issuance of the certificate of origin.
2. An exporter requesting a certificate of origin in accordance with Section 4.17, shall keep, for a minimum of five years from the date of issuance, all records and documents necessary to prove that the goods was originating.
3. An importer requesting preferential tariff treatment fora good, shall keep fora minimum of five years from the date of importation of the goods, the documents in connection with the importation, including the certificate of origin.
4. The records and documents referred to in paragraphs 1 to 3 may be kept in paper or in electronic form, in accordance with the laws of each Party.
Article 4.26. Inquiries and Procedures for the Verification of Origin
1. The competent authority for verification of origin of the importing Party, may request information about the origin of the goods to the competent authority for issuing certificates of origin of the exporting Party.
2. The competent authority for verification of origin of the importing Party, may require that the importer provide information in connection with the import of the good for which preferential tariff treatment was requested.
3. For the purposes of determining whether an imported good qualifies as originating, the competent authority for verification of origin of the importing Party may verify the origin of the goods by the following procedures:
(a) Requests for information or written questionnaires to the exporter or producer of the good in the territory of the other Party, through the competent authority for issuing certificates of origin
(b) Of the Exporting Party, on which the certificates of origin that protect the goods subject to verification must be specifically indicated;
(c) Verification visits to the premises of the exporter or producer of the good in the territory of the other Party, for the purposes of examining the records and documents referred to in Article 4.25 and of inspecting the facilities and production processes, including the materials used in production, or
(d) Any other procedure agreed upon by the Parties.
4. For the purposes of this Article, the competent authority for verification of origin of the importing Party shall inform the importer the beginning of the corresponding verification process.
5. For the purposes of this Article, any written communication submitted by the competent authority for verification of origin of the importing Party to the exporter or producer, through the competent authority for issuing certificates of origin of the exporting Party, shall be made by:
(a) Registered mail or other postal service which provides confirmation of reception of the documents or communications, or
(b) Any other means agreed upon by the Parties.
6. In accordance with paragraph 3, requests for information or written questionnaires must contain: (a) The name, title and address of the competent authority for verification of origin who is requesting the information;
(b) The name and address of the exporter or producer to whom the information and documentation is requested;
(c) The description of the information and documents requested, and (d) The legal basis for the requests for information or written questionnaires.
7. The exporter or producer who receives a questionnaire or request for information in accordance with paragraph 3 (a), shall duly complete and return the questionnaire or respond to the request for information within 30 days from the date of reception. During that period, the exporter or producer may request an extension in writing to the competent authority for verification of origin of the importing Party, which shall not exceed 30 days.
8. The competent authority for verification of origin of the importing Party may request, through the competent authority for issuing certificates of origin of the exporting Party, additional information to the exporter or producer, even if it had received the questionnaire or the information requested, referred to in paragraph 3 (a). In this case, the exporter or producer has a period of 30 days to respond to this request, reckoned from the day following the date of notification to the exporter or producer.
9. If the exporter or producer fails to properly complete a questionnaire, to return it, or to provide the requested information within the time limits set in paragraphs 7 and 8, the importing Party may deny preferential tariff treatment to the goods subject to verification by sending the exporter or producer, the importer and the competent authority for issuing certificates of origin of the exporting Party, a determination of origin in which the facts and the legal grounds for the decision are included.
10. Prior to conducting a verification visit and in accordance with the provisions of paragraph 3 (b), the competent authority for verification of origin of the importing Party shall provide written notice of its intention to conduct the visit of verification in accordance with paragraph 5. The competent authority for the verification of origin of the importing Party shall require, in order to conduct the verification visit, the written consent of the exporter or producer to be visited.
11. In accordance with the provisions of paragraph 3 (b), the notice of intent of performing the visit for the verification of origin referred to on paragraph 10, shall contain:
(a) The name, title and address of the competent authority for verification of origin of the importing Party issuing the notification;
(b) The name of the exporter or producer to be visited; (c) Date and place of the proposed verification visit;
(d) The purpose and scope of the proposed verification visit, including specific reference to the certificates of origin subject to verification;
(e) The names and titles of the officials performing the verification visit, and (f) The legal grounds for the verification visit.