5. The importer, exporter or producer receiving a request for information or a questionnaire pursuant to paragraph 2 (a) and (b) shall respond to the request for information or duly complete and return the questionnaire within thirty (30) days from the date of receipt. During the aforementioned period, the importer, exporter or producer may make a written request for an extension to the competent authority of the importing Party, which shall not exceed thirty (30) days. Such request for extension shall not have the consequence of denying preferential tariff treatment.
6. Each Party may, through its competent authority, request additional information, by means of a subsequent request or questionnaire, to the importer, exporter or producer, even if it has received the requested information or the completed questionnaire referred to in paragraph 2 (a) and (b). In this case the importer, exporter or producer shall have the same time limits as set forth in paragraph 5.
7. If the exporter or producer fails to provide the requested information, fails to properly complete a questionnaire, or fails to return the questionnaire within the periods set forth in paragraphs 5 and 6, the importing Party may deny preferential tariff treatment to the good subject to verification by issuing to the importer, exporter or producer, a determination of origin, including the facts and legal basis for that decision, and notifying the importer, exporter or producer in accordance with paragraph 3.
8. Prior to conducting a verification visit and in accordance with paragraph 2 (c), the importing Party, through its competent authority, shall notify in writing its intention to conduct the verification visit. The notification shall be sent to the exporter or producer as well as to the competent authority of the exporting Party, in accordance with paragraph 3. The competent authority of the importing Party shall request the written consent of the exporter or producer to conduct the verification visit.
9. In accordance with the provisions of paragraph 2 (c) the notification of intent to conduct the verification of origin visit referred to in paragraph 8 shall contain:
(a) the name or identification of the competent authority of the importing Party making the notification;
(b) the name of the exporter or producer to be visited;
(c) the date and place of the proposed verification visit;
(d) the purpose and scope of the proposed verification visit, including the specific reference of the goods to be verified;
(e) the names and positions of the officials who will carry out the verification visit; and
(f) the legal basis for the verification visit.
Any modification of the information referred to in this paragraph shall be notified in accordance with paragraph 8.
10. If the exporter or producer of a good does not consent in writing to the visit within thirty (30) days of the day following the notification referred to in paragraph 8, the importing Party may deny preferential tariff treatment to the good subject to verification by issuing to the importer, exporter or producer a determination of origin, including the facts and legal basis for that decision, and notifying the importer, exporter or producer in accordance with paragraph 3.
11. The competent authority of the importing Party shall not deny preferential tariff treatment to a good if, within fifteen (15) days following the date of receipt of the notification, for a single time, the producer or exporter requests the extension of the proposed verification visit with the corresponding justifications, for a period of no more than thirty (30) days counted from the date on which the notification was received, or for a longer period agreed upon by the competent authority of the importing Party and the exporter or producer. For these effects, the competent authority of the importing Party shall notify the extension of the visit to the exporter or producer, to the importer of the merchandise and to the competent authority of the exporting Party.
12. Pursuant to paragraph 2 (c), the competent authority of the importing Party shall allow an exporter or producer who is subject to a verification visit to designate up to two (2) observers to be present during the visit and to act solely in that capacity. Failure to designate observers shall not be grounds for postponement of the visit.
13. For the verification of compliance with any requirement established in Chapter 4 (Rules of Origin) and its Annex, the competent authority shall adopt, where applicable, the generally accepted accounting principles applied in the territory of the Party from which the good subject to verification was produced or exported.
14. When the exporter or producer of a good of the automotive industry that is imported into the territory of a Party calculates the regional value content of this good in accordance with the provisions of Article 4.7 (6) through (8) (Regional Value Content), the importing Party may not verify the regional value content with respect to that good until the end of the period on which it was calculated.
15. Each Party shall require an exporter or a producer to make available to the competent authority of the importing Party conducting the verification visit the records and documents referred to in Article 5.6 (1). If the records and documents are not in the possession of the exporter or producer, the exporter or producer may request the producer of the good or supplier of the materials, as appropriate, to make them available to the competent authority of the importing Party.
16. The competent authority of the importing Party may deny preferential tariff treatment to a good subject to a verification where the exporter or producer of the good fails to make available to the competent authority of the importing Party the accounting records and related documentation referred to in Article 5.6 (1).
17. When the verification visit has been concluded, the importing Party shall draw up a record of the visit, which shall include the facts found by it. The exporter or producer who was the subject of the visit may sign the minutes.
18. Within one hundred and twenty (120) days of the conclusion of the verification, the competent authority of the importing Party shall issue a determination of origin, including the facts, findings and legal basis for such determination, to determine whether or not the good qualifies as originating, and shall notify the importer, exporter or producer of the good subject to verification and the competent authority of the exporting Party, in accordance with paragraph 3.
19. The procedure to verify the origin shall not exceed one (1) year. However, the competent authority of the importing Party, in duly justified cases and only once, may extend said term for a period not exceeding thirty (30) days, notifying the parties involved.
20. Once the term or the corresponding extension established in the previous paragraph has elapsed, without the competent authority of the importing Party having issued a determination of origin, the good subject to the verification of origin shall receive the same preferential tariff treatment as if it were an originating good.
21. When through verification the importing Party determines that an exporter or producer has provided more than once false or unfounded statements or certifications of origin or false or unfounded information to the effect that a good qualifies as originating, the importing Party may suspend preferential tariff treatment to identical goods exported by that person until it satisfies the competent authority of the importing Party that the good meets all the requirements set out in Chapter 4 (Rules of Origin) and its Annex.
22. In case of resumption of preferential tariff treatment the competent authority of the importing Party shall issue a determination, including the facts and legal basis for such determination, and shall notify the importer, exporter or producer of the good subject to verification in accordance with paragraph 3.
23. If the importing Party issues a determination of origin under paragraph 18 that a good is non-originating, the Party shall not apply the determination to an importation made before the date of the determination when:
(a) the competent authority of the exporting Party issued an advance ruling regarding the tariff classification or valuation of one or more materials used in the good, pursuant to Article 6.10 (Advance Rulings);
(b) the determination of the importing Party is based on a tariff classification or valuation for such materials that is different from that provided in the advance ruling referred to in subparagraph (a); and
(c) the competent authority issued the advance ruling prior to the ruling of the importing Party.
Article 5.8. Confidentiality
1. Each Party shall, in accordance with its legislation, maintain the confidentiality of information collected under this Chapter and protect it from disclosure.
2. Confidential information collected pursuant to this Chapter may be disclosed only to the authorities in charge of the administration and enforcement of rulings of origin and customs and tax matters in accordance with the legislation of each Party.
Article 5.9. Review and Appeal
1. Each Party shall grant the same rights of review and appeal with respect to rulings of origin to its importers, or to exporters or producers of the other Party to whom such rulings have been notified under Article 5.7.
2. The rights referred to in the preceding paragraph include access to at least one administrative review, regardless of the official or office responsible for the original determinations under review, and access to judicial review of such determinations, as a last resort of administrative measures, in accordance with the legislation of each Party.
Article 5.10. Uniform Regulations
1. The Parties shall establish and implement, through their respective laws or regulations by the date on which this Agreement enters into force, or at such later date as the Parties may agree, uniform regulations regarding the interpretation, application and administration of Chapter 4 (Rules of Origin), this Chapter and such other matters as the Parties may agree.
2. Any modifications or additions to the uniform regulations shall be made by agreement between the Parties.
Chapter 6. TRADE FACILITATION
Article 6.1. Publication
1. The Parties shall publish in an orderly manner on the web page of their customs authority, their customs legislation, regulations and administrative procedures of a general nature.
2. Each Party shall, to the extent possible, make available to the public in electronic form all forms that a Party issues and that must be completed for the importation or exportation of a good.
3. Each Party shall, to the extent practicable, make known in advance any regulations of general application governing customs matters it proposes to adopt and give interested persons an opportunity to comment prior to their adoption.
4. The Parties shall designate or maintain one or more consultation points to address inquiries from interested persons on customs matters and shall make available on the Internet information regarding the procedures to be adopted to formulate and respond to inquiries.
Article 6.2. Clearance of Goods
1. The Parties shall adopt or maintain simplified customs procedures for the efficient clearance of goods in order to facilitate trade between them.
2. For the purposes of the preceding paragraph, the Parties shall:
(a) allow goods to be cleared at the point of arrival, without temporary transfer to warehouses or other premises;
(b) implement procedures that allow the clearance of goods in a period no longer than that required to ensure compliance with its customs legislation and, to the extent possible, clear the goods within forty-eight (48) hours of the start of the clearance process; and
(c) allow importers to remove goods from customs before the liquidation and payment of applicable customs duties, taxes and charges, without prejudice to the final decision of its customs authority on the same. For these purposes, a Party may require an importer to provide security, in the form of a bond, deposit or any other appropriate instrument that, to the satisfaction of the customs authority, covers the final payment of the customs duties, taxes and charges related to the importation of the good.
Article 6.3. Risk Management
Each Party shall endeavor to adopt or maintain risk management systems aimed at facilitating and simplifying the processing and procedures for the clearance of low-risk goods and directing its inspection and control activities towards the clearance of high-risk goods.
Article 6.4. Automation
1. Customs authorities shall endeavor to use information technology that will expedite the procedures for the release of goods. In choosing the information technology to be used for that purpose, each Party shall:
(a) will make efforts to use international standards;
(b) will make electronic systems accessible to customs users;
(c) provide for the electronic transmission and processing of information and data prior to the arrival of the shipment, in order to allow the clearance of goods upon arrival;
(d) use electronic or automated systems for risk analysis and risk management;
(e) work on the development of compatible electronic systems between the customs authorities of the Parties to facilitate the exchange of international trade data between governments; and
(f) will work to develop a set of common data elements and processes in accordance with the World Customs Organization (WCO) Customs Data Model and related WCO recommendations and guidelines.
2. Customs authorities will, to the extent possible, accept the forms, which must be completed by an importer or exporter, submitted electronically, as the legal equivalent of the printed version.
Article 6.5. Cooperation
1. In order to facilitate the effective operation of this Agreement, each Party shall endeavor to notify each other in advance of any significant modification of its import laws or regulations that may affect the implementation of this Agreement.
2. The Parties shall cooperate to achieve compliance with their respective laws and regulations with respect to:
(a) the implementation and operation of the provisions of this Agreement relating to imports or exports, including applications and origin procedures;
(b) the implementation and operation of the Customs Valuation Agreement;
(c) restrictions or prohibitions on imports or exports; and (d) such other customs matters as the Parties may agree.
3. Where a Party has reasonable suspicion of any unlawful activity related to its import legislation or regulations, the Party may request the other Party to provide specific confidential information, normally gathered in the course of importing goods.
4. A Party's request under paragraph 3 shall be in writing, shall specify the purpose for which the information is required and shall identify the information requested with sufficient specificity for the other Party to locate and provide it.
5. The Party from which the information is requested shall, in accordance with its legislation and any relevant international agreement to which it is a party, provide a written response containing such information.
6. For the purposes of paragraph 3, "reasonable suspicion of any unlawful activity" means a suspicion based on relevant factual information obtained from public or private sources, including one or more of the following:
(a) historical evidence of non-compliance with legislation or regulations governing imports by an importer or exporter;
(b) historical evidence of non-compliance with legislation or regulations governing imports by a manufacturer, producer or other person involved in the movement of goods from the territory of one Party into the territory of the other Party;
(c) historical evidence that any or all persons involved in the movement of goods from the territory of one Party into the territory of the other Party, for a specific product sector, have not complied with the Party's legislation or regulations governing imports; or
(d) other information that the requesting Party and the Party from which the information is requested agree is sufficient in the context of a particular request.
7. Each Party shall endeavor to provide the other Party with any additional information that may assist that Party in determining whether imports or exports from or to the territory of that Party comply with the laws or regulations governing imports of the other Party, in particular those relating to the prevention of illicit activities, such as smuggling and the like.
8. In order to facilitate trade between the Parties, each Party shall endeavor to provide the other Party with technical advice and assistance for the purpose of improving risk assessment and risk management techniques, simplifying and expediting customs procedures for the timely and efficient clearance of goods, improving the technical skills of personnel, and increasing the use of technologies that may lead to better compliance with legislation or regulations governing imports into a Party.
9. The Parties shall make efforts to cooperate in:
(a) strengthen each Party's ability to enforce regulations governing its imports;
(b) establish and maintain other channels of communication to facilitate the secure and rapid exchange of information; and
(c) improve coordination in import-related matters.
10. The Parties shall cooperate in the fast and efficient clearance of goods. To this end, they will endeavor to take into account as additional elements the certification that they carry out throughout their foreign trade chain in the country of export, international business alliances that promote safe trade in cooperation with governments and international organizations.
11. The Parties agree to enter into a Mutual Assistance Agreement between their customs authorities within one month of the signing of this Agreement.
Article 6.6. Confidentiality
1. Where a Party provides information to the other Party pursuant to this Chapter and designates it as confidential, the other Party shall maintain the confidentiality of such information. The Party having the information may require a written assurance from the requesting Party that the information will be held in confidence, that it will be used only for the purposes specified in the other Party's request for information, and that it will not be disclosed without specific permission from the Party providing the information.
2. A Party may refuse to provide the information requested by the other Party when the requesting Party fails to provide the assurance provided for in the preceding paragraph.
3. Each Party shall adopt or maintain procedures to ensure that confidential information provided by a Party, including information the dissemination of which could prejudice the competitive position of the person providing it, is protected from unauthorized disclosure.
Article 6.7. Expedited Delivery Shipments
The Parties shall adopt or maintain expedited customs procedures for fast delivery shipments, maintaining appropriate screening and selection systems. These procedures shall:
(a) provide for the electronic transmission and processing of information necessary for the clearance of a fast delivery shipment prior to its arrival;
(b) to allow the electronic presentation of a single manifest covering all the goods contained in a shipment transported by an express delivery service;
(c) provide for the clearance of certain goods with a minimum of documentation, in accordance with the legislation of each Party;
(d) under normal circumstances, provide for the clearance of expedited shipments within six (6) hours of the presentation of the necessary customs documents, provided the shipment has arrived; and
(e) applied without regard to weight, volume or quantity.
Article 6.8. Review and Appeal
Each Party shall ensure with respect to its administrative acts on customs matters access to:
(a) a level of administrative review independent of the employee or office issuing the administrative acts; and
(b) judicial review of administrative acts. Article 6.9 Sanctions The Parties shall adopt or maintain a system that allows for the imposition of civil or administrative penalties and, where appropriate, criminal penalties for violations of their customs laws and regulations, including those governing tariff classification, customs valuation, country of origin and claims for preferential tariff treatment under this Agreement.
Article 6.10. Advance Rulings
1. In order to ensure uniform application of customs legislation, provide predictability in customs actions, eliminate discretion and offer legal certainty to the user of the customs service, the importing Party, through its customs authority or competent authority, at the written request of its importer or an exporter or producer (1) of the other Party, prior to the importation of a good into its territory, shall issue a written advance ruling with respect to:
(a) tariff classification;
(b) the application of customs valuation criteria for a particular case, in accordance with the application of the provisions contained in the Customs Valuation Agreement;
(c) the application of refunds, suspensions or other exemptions from customs duties;
(d) whether a good is originating under Chapter 4 (Rules of Origin), including Annex 4.3 (Specific Rules of Origin);
(e) country of origin marking; (f) the application of quotas; and (g) such other matters as the Parties may agree.
2. Each Party shall establish procedures for the request and issuance of advance rulings, including:
(a) the obligation of the interested party to provide the information required by the customs authority or competent authority to process a request for advance ruling, including, if required, a sample of the merchandise for which an advance ruling is being requested;
(b) the obligation of the customs authority or competent authority to issue an advance ruling within a maximum period of one hundred and twenty (120) days, once all the necessary information has been submitted by the applicant; and
(c) the obligation of the customs authority or competent authority to issue an advance ruling, considering the facts and circumstances presented by the applicant.
3. Each Party shall provide to any person requesting an advance ruling the same treatment as provided for any other person to whom an advance ruling has been issued, provided that the facts and circumstances are identical in all material respects.
4. Each Party shall provide that advance rulings shall take effect from the date of their issuance or other date specified in the ruling, provided that the facts or circumstances on which the ruling is based have not changed.
5. The customs authority or competent authority issuing the ruling may modify or revoke an advance ruling after the Party notifies the applicant. The Party issuing the ruling may modify or revoke an advance ruling for the purpose of collecting any applicable duties, taxes and charges foregone, only if the advance ruling was based on incorrect or false information, and shall notify the applicant immediately.
6. The customs authority or competent authority may modify or revoke an advance ruling, when:
(a) is based on errors such as the tariff classification of a good or of the materials that are the subject of the determination, the application of the customs valuation criteria of the goods or the application of the regional value content requirement under Chapter 4 (Rules of Origin);
(b) the determination is not in accordance with the uniform regulations referred to in Article 5.10 (Uniform Regulations) or Chapter 4 (Rules of Origin);
(c) there is a change in the facts and circumstances on which the resolution is based;
(d) Chapter 4 (Rules of Origin) or this Chapter is amended; or
(e) an administrative decision must be complied with regardless of the issuing authority, a judicial decision or to comply with a change in the national legislation of the Party that has issued the advance ruling.
7. Subject to confidentiality requirements under its law, each Party shall make its advance rulings publicly available.
8. If an applicant provides false information or omits facts or circumstances relevant to the advance ruling, or fails to act in accordance with the terms and conditions of the ruling, the importing Party may apply such measures as may be appropriate, including administrative, civil or criminal actions, monetary penalties or other sanctions.
9. Each Party shall provide that the holder of an advance ruling may use it only as long as the facts or circumstances on the basis of which it was issued continue to exist.
10. Any good subject to a verification of origin or a request for review or appeal in the territory of one of the Parties shall not be subject to an advance ruling.
Article 6.11. Trade Facilitation Committee
1. The Parties establish the Trade Facilitation Committee, composed of two (2) representatives of each Party, one representative and one alternate; said Committee shall be competent to hear matters related to the provisions of this Chapter.
2. The Trade Facilitation Committee shall meet in regular session once (1) a year and in special session as often as necessary at the request of the Commission or any Party.
3. The Trade Facilitation Committee shall have, in addition to the functions set forth in Article 17.5 (Technical Committees), the following functions:
(a) develop, no later than one hundred and eighty (180) days after the entry into force of this Agreement, or on such other date as the Parties may agree, the rules of procedure for the operation of the Trade Facilitation Committee, which may be modified by agreement between the Parties;
(b) propose to the Commission the adoption of customs practices and guidelines to facilitate trade between the Parties, in accordance with the evolution of WCO and WTO guidelines;
(c) propose to the Commission solutions to disputes arising in connection with:
(i) interpretation, application and administration of this Chapter;
(ii) tariff classification and customs valuation matters; and
(iii) other issues related to practices or procedures adopted by the Parties that impede the expeditious clearance of goods;
(d) to ensure the correct application of customs regulations by the customs authorities;
(e) propose to the Commission alternative solutions to the obstacles or inconveniences related to trade facilitation that arise between the Parties;
(f} propose uniform guidelines to the Commission, based on international standards, that will lead to the improvement of customs procedures;
(g) to examine proposals for the modification of customs regulations relating to this Chapter, which may affect the flow of trade between the Parties;
(h) report to the Commission on the development of its activities; and
(i) any other matter deemed relevant by the Committee. 4. A Party that considers that one or more of the provisions of this Chapter should be modified may submit a proposal for modification, together with the reasons and studies supporting them, for consideration by the Commission, which may refer the matter to this Committee, which shall provide a report to the Commission, setting forth its conclusions and recommendations, if any. Article 6.12 Implementation The Parties shall apply:
(a) Articles 6.2 (2) (b) and (c) and 6.7 one (1) year after the date of entry into force of this Agreement; and
(b) Articles 6.1(1) and (4), 6.3, 6.4 and 6.10 two (2) years after the date of entry into force of this Agreement.
Chapter 7. SAFEGUARD MEASURES
Article 7.1. Definitions
For the purposes of this Chapter:
threat of serious injury means "threat of serious injury" as defined in the Agreement on Safeguards;
competent investigating authority means:
(a) with respect to the Republic of El Salvador, the Direccién de Administracién de Tratados Comerciales, del Ministerio de Economia;
(b) with respect to the Republic of Guatemala, the Direcci6én de Administracién del Comercio Exterior, of the Ministry of Economy;
(c) with respect to the Republic of Honduras, the General Directorate of Economic Integration and Trade Policy of the Secretariat of State in the Offices of Industry and Commerce; and
(d) with respect to the Republic of Colombia, the Subdirectorate of Commercial Practices of the Ministry of Commerce, Industry and Tourism;