2. A good originating in the territory of a Party shall retain its initial originating status, when exported from the other Party, where operations undertaken have not gone beyond those referred to in paragraph 1.
Article 3.8. Materials Used In Production
If a non-originating material undergoes further production such that it satisfies the requirement of this Chapter, the material shall be treated as originating when determining the originating status of the subsequently produced good, regardless of whether that material was produced by the producer of the good.
Article 3.9. 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 good remains under the control of the customs administrations in the intermediate countries; and
3 For purposes of this Article, âsimple mixingâ generally describes an activity which does not need special skills, or machines, apparatus, or equipment especially produced or installed for carrying out the activity. However, simple mixing does not include chemical reaction. Chemical reaction means a process (including a biochemical process) which result in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.
* âSlaughteringâ means the mere killing of animals and subsequent processes such as cutting, chilling, freezing, salting, drying or smoking, for purposes of preservation for storage and transport.
(b) the good has not undergone any operation other than unloading and reloading, storing, or any operation required to keep it in
good condition. Article 3.10: De Minimis 1. A good that does not undergo a change in tariff classification shall be
considered as originating if:
(a) for a good, other than that provided for in Chapters 50 through 63 of the Harmonized System, the value of all non-originating materials used in its production that do not undergo the required change in tariff classification does not exceed 10 percent of the FOB value of the good;
(b) for a good provided for in Chapters 50 through 63 of the Harmonized System, the weight of all non-originating materials used in its production that do not undergo the required change in tariff classification does not exceed 10 percent of the total weight of the good;
and the good specified in subparagraphs (a) and (b) meets all other applicable criteria set forth in this Chapter for qualifying as an originating good.
2. The value of non-originating materials referred to in paragraph 1 shall, however, be included in the value of non-originating materials for any applicable RVC requirement for the good.
Article 3.11. Treatment of Packaging and Packing Materials
1. Packing materials and containers for the transportation and shipment of a good shall not be taken into account in determining the originating status of any good.
2. Packing materials and containers in which a good is packaged for
retail sale, which are classified together with the good, shall not be taken into account in determining the originating status of the good, provided that:
(a) the good is wholly obtained or produced in a Party in accordance with Article 3.2.1(a);
(b) the good is produced in a Party exclusively from originating materials, in accordance with Article 3.2.1(b); or
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(c) the good is subject to a change in tariff classification or a specific manufacturing or processing operation requirement provided in Annex 3-A.
3. If a good is subject to the RVC requirement, the value of the packaging materials and containers in which the good is packaged for retail sale shall be taken into account as originating materials or non-originating materials of the good, as the case may be, in calculating the RVC of the good.
Article 3.12. Accessories, Spare Parts and Tools
1. For purposes of determining the originating status of a good, accessories, spare parts, tools, and instructional or other information materials presented with the good shall be considered as part of the good and shall be disregarded in determining whether all the non-originating materials used in the production of the good have undergone the applicable change in tariff classification or a specific manufacturing or processing operation set out in Annex 3-A, provided that:
(a) the accessories, spare parts, or tools, and instructional or other information materials presented with the good are not invoiced separately from the good; and
(b) the quantities and value of the accessories, spare parts, tools, and instructional or other information materials presented with the good are customary for the good.
2. Notwithstanding paragraph 1, if a good is subject to a RVC criterion as set out in Annex 3-A, the value of the accessories, spare parts, tools, and instructional or other information materials presented with the good shall be taken into account as originating or non-originating materials as the case may be, in calculating the RVC of the good, provided that:
(a) the accessories, spare parts, or tools, and instructional or other information materials presented with the good are not invoiced separately from the good; and
(b) the quantities and value of the accessories, spare parts, tools,
and instructional or other information materials presented with the good are customary for the good.
Article 3.13. Neutral Elements3-9
In order to determine whether a good originates, it shall not be necessary to determine the origin of the following which might be used in its production and not incorporated into the good:
(a) (b) (c)
(d)
(e)
(f)
(g) (h)
fuel and energy; tools, dies and moulds;
spare parts and materials used in the maintenance of equipment and buildings;
lubricants, greases, compounding materials and other materials used in production or used to operate equipment and buildings;
gloves, glasses, footwear, clothing, safety equipment and supplies;
equipment, devices and supplies used for testing or inspecting the good;
catalysts and solvents; and any other goods that are not incorporated into the good but of
which use in the production of the good can reasonably be demonstrated to be a part of that production.
Article 3.14. Fungible Goods or MaterialsThe Determination of Whether Fungible Goods or Materials Are Originating Shall Be Made Either by Physical Segregation of Each of the Fungible Goods or Materials or, Where Commingled, by the Use of an Inventory Management Method Which Is Recognized In the Generally Accepted Accounting Principles of the Exporting Party, and Should Be Used Throughout the Fiscal Year.
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Section Section B: Operational Certification Procedures
Article 3.15. Proof of Origin 1. Any of the Following Shall Be Considered as a Proof of Origin:
(a) a Certificate of Origin issued by an issuing body in accordance with Article 3.16; or
(b) a Declaration of Origin by an approved exporter in accordance with Article 3.17.
2. A Proof of Origin shall:
(a) be in writing, or any other medium, including electronic format as notified by an importing Party;
(b) specify that the good is originating and meets the requirements of this Chapter; and
(c) contain information which meets the minimum information requirements as set out in Annex 3-C.
3. Each Party shall provide that a Proof of Origin remains valid for one year from the date on which it is issued or completed. Article 3.16: Certificate of Origin 1. A Certificate of Origin shall be issued by the issuing body of an exporting Party upon an application by an exporter, a producer, or their authorized representative. 2. The exporter, producer, or their authorized representative shall apply in writing or by electronic means for a Certificate of Origin, to the issuing body of the exporting Party in accordance with the exporting Partyâs laws, regulations, and procedures. 3. A Certificate of Origin shall:
(a) be in the format set out in Annex 3-D;
(b) bear a unique Certificate of Origin number;
(c) be in the English language; and
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(d) bear an authorized signature and official seal of the issuing body of the exporting Party. The signature and seal shall be applied manually or electronically.
4. A Certificate of Origin may: (a) indicate two or more invoices issued for a single shipment; or
(b) contain multiple goods, provided that each good qualifies as an originating good separately in its own right.
5. In circumstances where a Certificate of Origin contains incorrect information, the issuing body of the exporting Party may:
(a) issue a new Certificate of Origin and invalidate the original Certificate of Origin; or
(b) make modifications to the original Certificate of Origin by striking out errors and making any additions or corrections. Any changes shall be certified by the authorized signature and official seal of the issuing body of the exporting Party.
6. Each Party shall provide the names, specimen signaturesâ, addresses, and impressions of official seals of its issuing body to the other Party. Any subsequent changes shall be promptly notified. The Parties shall endeavor to establish a secured website to display such information from the last three years, and such website shall be accessible to the Parties.
7. A Certificate of Origin shall be issued prior to or at the time of shipment, or within seven calendar days® after the date of shipment. In exceptional cases where a Certificate of Origin has not been issued prior to or at the time of shipment, or within seven calendar days after shipment due to involuntary errors, omissions, or other valid causes, or in the circumstances referred to in subparagraph 5(a), a Certificate of Origin may be issued retrospectively but no later than one year after the date of shipment. In that case, the Certificate of Origin shall bear the words âISSUED RETROACTIVELYâ.
5 The Tequirement to circulate the specimen signatures is not necessary when the issuing authority has established the website containing relevant information of Certificate of Origin that the importing Party can access.
° For greater certainty, âseven calendar daysâ shall include the date of shipment itself.
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8. In the event of theft, loss, or destruction of an original Certificate of Origin, the exporter, producer, or their authorized representative may apply in writing to the issuing body of the exporting Party for a certified true copy of the original Certificate of Origin. The copy shall:
(a) be issued no later than one year after the date of issuance of the original Certificate of Origin;
(b) be based on the application for the original Certificate of Origin;
(c) contain the same Certificate of Origin number and date as the original Certificate of Origin; and
(d) be endorsed with the words âCERTIFIED TRUE COPYâ.
Article 3.17. Declaration of Origin
1. A Declaration of Origin referred to in Article 3.15.1(b) may be completed by an approved exporter within the meaning of Article 3.19.
2. A Declaration of Origin shall: (a) be completed in accordance with Annex 3-C; (b) be in the English language; (c) bear the name and signature of the certifying person; and (d) bear the date on which the Declaration of Origin was completed. Article 3.18: Third-Party Invoicing An importing Party shall not deny a claim for preferential tariff treatment for the sole reason that an invoice was not issued by the exporter or producer of a good provided that the good meets the requirements in this Chapter. Article 3.19: Approved Exporter 1. Each Party shall provide for the authorization of an exporter who
exports goods under this Agreement as an approved exporter, in accordance with its laws and regulations. An exporter seeking such authorization must
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apply in writing or electronically and must offer to the satisfaction of the competent authority of the exporting Party all guarantees necessary to verify the originating status of the good for which a Declaration of Origin is completed. The competent authority of an exporting Party may grant the status of approved exporter subject to any conditions which it considers appropriate, including the following:
(a)
(b)
(c)
(d)
(e)
(f)
that the exporter is duly registered in accordance with the laws and regulations of the exporting Party;
that the exporter knows and understands the rules of origin as set out in this Chapter;
that the exporter has a satisfactory level of experience in export in accordance with the laws and regulations of the exporting Party;
that the exporter has a record of good compliance, measured by risk management of the competent authority of the exporting Party;
that the exporter, in the case of a trader, is able to obtain a declaration by the producer confirming the originating status of the good for which the Declaration of Origin is completed by an approved exporter and the readiness of the producer to cooperate in verification in accordance with Article 3.22 and meet all requirements of this Chapter; and
that the exporter has a well-maintained bookkeeping and record-keeping system, in accordance with the laws and regulations of the exporting Party.
2. The competent authority of an exporting Party shall:
(a)
(b)
(c)
make its approved exporter procedures and requirements public and easily available;
grant the approved exporter authorization in writing or electronically;
provide the approved exporter an authorization code which must be included in the Declaration of Origin; and
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(d) exchange informationâ of the Partiesâ approved exporters with the other Party through a secured website or any electronic means in relation to the authorization granted.
3. Notwithstanding subparagraph 2(d), a Party shall not be required to provide the information referred to in that subparagraph to the other Party if it has established its own secured website, containing the above information, that is accessible to the other Party.
4. An approved exporter shall have the following obligations:
(a) to allow the competent authority of an exporting Party access to records and premises for the purposes of monitoring the use of authorization, in accordance with Article 3.25;
(b) to complete Declarations of Origin only for goods for which the approved exporter has been allowed to do so by the competent authority of an exporting Party and for which it has all appropriate documents proving the originating status of the goods concerned at the time of completing the declaration;
(c) to take full responsibility for all Declarations of Origin completed, including any misuse; and
(d) to promptly inform the competent authority of an exporting Party of any changes related to the information referred to in subparagraph (b).
5. The competent authority of the exporting Party shall monitor the use of the authorization, including verification of the Declarations of Origin by an approved exporter, and withdraw the authorization where the conditions referred to in paragraph 1 are not met.
6. An approved exporter shall be prepared to submit at any time, on request of the customs administration of the importing Party, all appropriate documents proving the originating status of the goods concerned, including statements from the suppliers or producers in accordance with the laws and regulations of the importing Party as well as the fulfillment of the other requirements of this Chapter.
7 The information includes the legal name and address of the exporter, the approved exporter authorization code, the issuance date and, if applicable, the expiry date of its approved exporter authorization, and a list of goods subject to the authorization, at least at the HS Chapter level.
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Article 3.20. Claims for Preferential Tariff Treatment
1. An importing Party shall grant preferential tariff treatment in accordance with this Agreement to an originating good on the basis of a Proof of Origin.
2. Unless otherwise provided in this Chapter, an importing Party shall provide that, for the purposes of claiming preferential tariff treatment, the importer shall:
(a) make a declaration in its customs declaration that the good qualifies as an originating good;
(b) have a valid Proof of Origin in its possession at the time the declaration referred to in subparagraph (a) is made; and
(c) provide an original or a certified true copy of the Proof of Origin to the importing Party if required by the importing
Party. 3. Notwithstanding paragraphs 1 and 2, the importing Party shall not require a Proof of Origin if: (a) the customs value of the importation does not exceed
USS 200 or the equivalent amount in the importing Partyâs currency or any higher amount as the importing Party may establish; or
(b) it is a good for which the importing Party has waived the requirement,
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 and regulations governing claims for preferential tariff treatment under this Agreement.
4. The customs administration of the importing Party may require, where appropriate, the importer to submit supporting evidence that a good qualifies as an originating good, in accordance with the requirements of this Chapter.
5. The importer shall demonstrate that the requirements referred to in
Article 3.9. Have Been Met and Provide such Evidence on Request of the Customs Administration of the Importing Party.3-16
6. Where a Proof of Origin is submitted to the customs administration of an importing Party after the expiration of the period of time for its submission, such Proof of Origin may still be accepted, subject to the importing Partyâs laws, regulations, or administrative practices, when failure to observe the period of time results from force majeure or other valid causes beyond the control of the importer or exporter.
Article 3.21. Post-Importation Claims for Preferential Tariff Treatment
1. Each Party, subject to its laws and regulations, shall provide that where a good would have qualified as an originating good when it was imported into that Party, the importer of the good may, within a period specified by its laws and regulations, and after the date on which the good was imported, apply for a refund of any excess duties, deposit, or guarantee paid as the result of the good not having been granted preferential tariff treatment, on presentation of the following to the customs administration of that Party:
(a) a Proof of Origin and other evidence that the good qualifies as an originating good; and
(b) such other documentation in relation to the importation as the customs administration may require to satisfactorily evidence the preferential tariff treatment claimed.
2. Notwithstanding paragraph 1, each Party may require, in accordance with its laws and regulations, that the importer notify the customs administration of that Party of its intention to claim preferential tariff treatment at the time of importation.
Article 3.22. Verification
1. For purposes of determining whether a good imported into a Party from the other Party qualifies as an originating good under this Chapter, the competent authority of the importing Party may conduct a verification process by means of:
(a) a written request for additional information from the importer; (b) a written request for additional information from the exporter
or producer;
(c) a written request that the competent authority of the exporting Party assists in verifying the origin of the good
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(d)
(e)
within the competence and available resources of the exporting Party;
a verification visit to the premises of the exporter or producer in the exporting Party to observe the facilities and the production processes of the good and to review the records referring to the origin, including accounting files;® or
any other procedures to which the Parties may agree.
2. The importing Party shall:
(a)
(b)
(c)
for purposes of subparagraph 1(b), send a written request with a copy of the Proof of Origin and the reasons for the request to the exporter or producer of the good;