(d) goods obtained from animals referred to in subparagraph (c) of this Article or raised in the territory of that Party;
(e) goods obtained from hunting, trapping, fishing or aquaculture conducted in the territory of that Party;
(f) goods of sea fishing and other marine goods taken from outside its territorial waters by a vessel registered, recorded or licensed with a Party and flying its flag;
(g) goods produced and/or made on board a factory ship from goods referred to in subparagraph (f) of this Article, provided such factory ship is registered, recorded or licensed with a Party and flying its flag;
(h) goods, other than goods of sea fishing and other marine goods, taken or extracted from the seabed or the subsoil of the continental shelf or the exclusive economic zone of any of the Parties;
(i) goods, other than goods of sea fishing and other marine goods, taken or extracted from the seabed or the subsoil, in the Area outside the continental shelf and the exclusive economic zone of any of the Parties or of any other State as defined in the United Nations Convention on the Law of the Sea, by a vessel registered, recorded or licensed with a Party, or a person of a Party;
(j) used articles collected in the territory of that Party which can no longer perform their original purpose there nor are capable of being restored or repaired and which are fit only for disposal or for the recovery of parts or raw materials;
(k) waste or scrap resulting from consumption or manufacturing operations conducted in the territory of that Party, fit only for disposal or recovery of raw materials; and
(l) goods produced in the territory of that Party exclusively from goods referred to in subparagraphs (a) through (k) of this Article, or from their derivatives, at any stage of production.
Article 3.4. Sufficient Working or Production
1. For the purpose of subparagraph (b) of Article 3.2, a good which has undergone sufficient working or production in the territory of a Party, as provided under this Article, shall be treated as an originating good of that Party.
2. A good is considered to have undergone sufficient working or production in the territory of a Party if the good:
(a) satisfies the product-specific rules of origin for the products specified in Annex 3; or
(b) attains a qualifying value added of not less than thirty five percent (35%) based on the ex-works price as determined in paragraph 3 of this Article.
3. For the purpose of subparagraph 2(b) of this Article, the following formula for qualifying value added shall apply:
Ex-Works Price - N.O.M. / Ex-Works Price x 100 > 35%
where:
(a) Ex-Works Price means the price paid for the good ex-works to the manufacturer in the Parties in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the good obtained is exported;
(b) N.O.M. is the value of the non-originating materials, as defined in subparagraph (h) of Article 3.1.
4. For the purpose of calculating the N.O.M. under subparagraph 3(b) of this Article, the value of the N.O.M. used in the production of a good in the territory of a Party shall be the cost, insurance and freight (CIF) value and shall be determined in accordance with the provisions of Part I of the Agreement on Implementation of Article VII of the GATT 1994 in Annex 1A to the WTO Agreement (hereinafter referred to as "Agreement on Customs Valuation"), or if the CIF value is not known and cannot be ascertained, the first ascertainable price paid for the material in the Party.
Article 3.5. Materials Used In Production
For a non-originating material that undergoes sufficient production in the territory of one or both the Parties as provided for in Article 3.4, the total value of the resulting good shall be the originating value when that good is used in the subsequent production of another good.
Article 3.6. De Minimis
Notwithstanding subparagraph 2(a) of Article 3.4, a good shall be considered as originating where the value of all non-originating materials used in the production of the good, which do not undergo the applicable change in tariff classification or fulfill any other condition set out in Annex 3, does not exceed ten percent (10%) of the ex-works price of the good.
Article 3.7. Accumulation
Originating materials from the GCC, used in the production of a good in Singapore, shall be considered to originate in Singapore, or vice versa.
Article 3.8. Insufficient Operations
1. The following operations or processes shall not be considered as sufficient production provided for in Article 3.4:
(a) operations to ensure the preservation of goods in good condition during transport and storage (such as drying, freezing, keeping in brine, ventilation, spreading out, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);
(b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including assembly of sets of articles), washing, painting, cutting;
(c) changes in packing and breaking up and assembly of consignments;
(d) simple cutting, placing in bottles, slicing and re-packing in flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations;
(e) affixing of marks, labels or other like distinguishing signs on goods or their packaging;
(f) slaughter of animals;
(g) any combination of two or more operations referred to in subparagraphs (a) to (f) above.
2. All operations carried out in a Party on a given good shall be considered together when determining whether the working or processing undergone by that good is to be regarded as insufficient within the meaning of paragraph 1 of this Article.
Article 3.9. Accessories, Spare Parts, Tools
Each Party shall provide that the accessories, spare parts and tools dispatched with a piece of good, which are part of the normal good and included in the price thereof or which are not separately invoiced, shall be:
(a) regarded as one with the piece of good in question, and
(b) disregarded in determining whether all the non-originating materials used in the production of the good in Annex 3 undergo the applicable change in tariff classification.
Article 3.10. Packaging Materials and Containers for Retail Sale
Each Party shall provide that packaging materials and containers in which a good is packaged for retail sale, if classified with the good, 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 set out in Annex 3 and, if the good is subject to qualifying 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 qualifying value content of the good.
Article 3.11. Packing Materials and Containers for Shipment
Each Party shall provide that packing materials and containers in which a good is packed for shipment shall be disregarded in determining whether the good satisfies the qualifying value content requirement.
Article 3.12. Neutral Elements
In order to determine whether a good originates, the value of the following neutral elements which might be used in its manufacture shall be excluded from the non- originating materials:
(a) plant and equipment;
(b) machines and tools; or
(c) goods which do not enter and which are not intended to enter into the final composition of the good.
Article 3.13. Accounting Segregation of Materials
1. Each Party shall provide that the determination of whether fungible goods or materials are originating goods shall be made either by physical segregation of each good or material or through the use of any inventory management method, such as averaging, last-in, first-out, or first-in, first out, recognised in the generally accepted accounting principles of the Party in which the production is performed, or otherwise accepted by the Party in which the production is performed.
2. Each Party shall provide that an inventory management method selected under paragraph 1 of this Article for particular fungible goods or materials shall continue to be used for those fungible goods or materials throughout the fiscal year of the Party that selected the inventory management method.
Section B. CONSIGNMENT CRITERIA
Article 3.14. Direct Consignment
1. The originating goods of a Party shall be deemed to meet the consignment criteria under this Agreement when they are:
(a) transported directly from the territory of that Party to the territory of another Party; or
(b) transported through the territory or territories of one or more non- Parties for the purpose of transit or temporary storing in warehouses in such territory or territories, and the goods have not entered into trade or consumption there, provided that:
(i) they do not undergo operations other than unloading, reloading or operations to preserve them in good condition; or
(ii) the transit entry is justified for geographical reason or by considerations related exclusively to transport requirements.
2. Evidence that the conditions set out in paragraph 1 of this Article have been fulfilled shall be supplied to the customs authorities of the importing Party by the production of:
(a) a single transport document covering the passage from the exporting Party through the country of transit; or
(b) a certificate issued by the customs authorities of the country of transit:
(i) giving an exact description of the goods;
(ii) stating the dates of unloading and reloading of the goods and, where applicable, the names of the ships, or the other means of the transport used; and
(iii) certifying the conditions under which the goods remained in the transit country; or
(c) where the documents referred to under subparagraphs (a) or (b) above cannot be produced, any substantiating documents acceptable to the customs authorities.
Section C. CONSULTATION AND MODIFICATIONS
Article 3.15. Consultation and Modifications
The Parties shall consult and cooperate as appropriate to:
(a) ensure that this Chapter is applied in an effective and uniform manner; and
(b) discuss necessary amendments to this Chapter, taking into account developments in technology, production processes, and other related matters.
Section D. APPLICATION AND INTERPRETATION
Article 3.16. Application and Interpretation
For the Purposes of this Chapter:
(a) the basis for tariff classification is the Harmonized System; and
(b) any cost and value 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.
Chapter 4. CUSTOMS PROCEDURES
Article 4.1. Scope
This Chapter shall apply, in accordance with the Parties' respective national laws, rules and regulations, to customs procedures required for clearance of goods traded between the Parties.
Article 4.2. General Provisions
1. The Parties recognise that the objectives of this Agreement may be promoted by the simplification of customs procedures for their bilateral trade.
2. Customs procedures of the Parties shall conform where possible, to the standards and recommended practices of the World Customs Organization.
3. The customs administration of each Party shall periodically review its customs procedures with a view to their further simplification and development to facilitate bilateral trade.
Article 4.3. Transparency
1. Each Party shall ensure that its laws, regulations, guidelines, procedures, and administrative rulings governing customs matters are promptly published, either on the Internet or in print form.
2. Each Party shall designate, establish, and maintain one or more inquiry points to address inquiries from interested persons pertaining to customs matters, and shall endeavour to make available publically through electronic means, information concerning procedures for making such inquiries.
3. Nothing in this Article or in any part of this Agreement shall require any Party to publish law enforcement procedures and internal operational guidelines including those related to conducting risk analysis and targeting methodologies.
Article 4.4. Risk Management
1. The Parties shall adopt a risk management approach in its customs activities, based on its identified risk of goods, in order to facilitate the clearance of low-risk consignments, while focusing its inspection activities on high-risk goods.
2. The Parties shall exchange information on risk management techniques used in the performance of their customs procedures.
Article 4.5. Paperless Communications
1. For the purposes of trade facilitation, the Parties shall endeavour to provide an electronic environment that supports business transactions between their respective customs administration and their trading entities.
2. The Parties shall exchange views and information on realising and promoting paperless communications between their respective customs administration and their trading entities.
3. The respective customs administration of the Parties, in implementing initiatives which provide for the use of paperless communications, shall take into account the methodologies agreed at the World Customs Organization.
Article 4.6. Certification of Origin
1. The certification of origin will be issued by the competent authority of each Party for the first two (2) years after the date of entry into force of this Agreement.
2. The Parties shall exchange specimen signatures of the authorised signatories issuing the certification of origin and shall provide specimen impressions of official seals at least six (6) months before the date of entry into force of this Agreement.
3. For the purposes of paragraph 1 of this Article, the Parties agreed to include the origin criterion text which would appear in the corresponding description of goods column of the Certification of Origin as "QUALIFYING VALUE CONTENT: %" or "CTC", as the case may be.
4. Notwithstanding paragraph 1 of this Article, at the first regular review session of this Agreement by the Joint Committee pursuant to paragraph 3 of Article 1.11, the Parties shall evaluate and decide on whether to continue with the issue of the certification of origin by the competent authority of each Party, or to switch to the self-certification procedures as set out in paragraphs 5 to 9 of this Article. If either Party is not ready to switch to self-certification during the first regular review session, the issue shall be deferred to subsequent reviews until such time where both Parties can agree to adopt the self-certification procedures.
5. In the case of self-certification, for the purpose of obtaining preferential tariff treatment in the other Party, a proof of origin in the form of a certification of origin shall be completed in accordance with Annex 4 and signed by an exporter or producer of the exporting Party, certifying that a good qualifies as an originating good for which an importer may claim preferential treatment upon the importation of the good into the territory of the other Party.
6. The details in the certification of origin have been agreed between the Parties to consist of the HS Code, description and quantity of the goods, name of consignee, name of exporter or producer or manufacturer, and the country of origin.
7. Each Party shall:
(a) require an exporter in its territory to complete and declare a certification of origin for any exportation of goods for which an importer may claim preferential tariff treatment upon importation of the goods into the territory of the other Party; and
(b) provide that where an exporter in its territory is not the producer of the good, the exporter may complete and declare a certification of origin on the basis of:
(i) his knowledge of whether the good qualifies as an originating good; or
(ii) his reasonable reliance on the producer's written representation that the good qualifies as an originating good; or
(iii) a completed and signed certification for the good voluntarily provided to the exporter by the producer.
8. Nothing in paragraph 7 of this Article shall be construed to require a producer to provide a certification of origin to an exporter.
9. Each Party shall provide that a certification of origin that has been completed and signed by an exporter or producer in the territory of the other Party that is applicable to a single importation of a good into the Partyâs territory shall be accepted by its Customs Administration within six (6) months from the date on which the certification of origin was signed.
Article 4.7. Claims for Preferential Treatment
1. Except as otherwise provided In this Chapter, each Party shall require an importer who makes a claim for preferential tariff treatment under this Agreement to:
(a) request preferential tariff treatment at the time of importation of an originating product, whether or not the importer has a certification of origin;
(b) make a written declaration that the good qualifies as an originating good;
(c) have the certification of origin in its possession at the time the declaration is made, if required by the importing Party's customs administration;
(d) provide an original or a copy of the certification of origin as may be requested by the importing Party's customs administration and, if required by that customs administration, such other documentation relating to the importation of the product; or
(e) promptly make a corrected declaration and pay any duties owing where the importer has reason to believe that a certification of origin on which a declaration was based contains information that is not correct.
2. A Party may deny preferential tariff treatment under this Agreement to an imported good if the importer fails to comply with any requirement in this Article.
3. Each Party shall, in accordance with its laws, provide that where a good would have qualified as an originating good when it was imported into the territory of that Party, the importer of the good may, within a period specified by the laws of the importing Party, apply for a refund of any excess duties paid as a result of the good not having been accorded preferential treatment.
Article 4.8. Waiver of Certification of Origin
Each Party shall provide that a certification of origin shall not be required for the importation of a good whose value does not exceed US$1,000 or its equivalent amount in the Party's currency, except that it may require that the invoice accompanying the importation shall include a statement certifying that the good qualifies as an originating good.
Article 4.9. Record Keeping Requirement
1. Each Party shall provide that the exporter or producer in its territory that declares a certification of origin shall maintain in its territory, for thirty (30) months after the date on which the certification of origin was signed, all records relating to the origin of a good for which preferential tariff treatment was claimed in the territory of another Party, including records associated with:
(a) the purchase of, cost of, value of, shipping of, and payment for, the good that is exported from its territory;
(b) the sourcing of, purchase of, cost of, value of, and payment for, all materials, including indirect materials, used in the production of the good that is exported from its territory; and
(c) the production of the good in the form in which the good is exported from its territory.
2. Each Party shall provide that an importer claiming preferential tariff treatment for a good imported into the Party's territory shall maintain in that territory, for thirty (30) months after the date of importation of the good, such documentation, including a copy of the certification of origin, as the Party may require relating to the importation of the good.
3. The records to be maintained in accordance with paragraphs 1 and 2 of this Article may include electronic records and shall be maintained in accordance with the domestic laws and practices of each Party.
Article 4.10. Cooperation In Origin Verification
1. For the purpose of determining the authenticity and the correctness of the information given in the certification of origin, the importing Party may conduct verification by means of:
(a) requests for information from the importer;
(b) requests for assistance from the customs administration of the exporting Party as provided for in paragraph 2 of this Article;
(c) written questionnaires to an exporter or a producer in the territory of another Party through the competent authority of the exporting Party;
(d) visits to the premises of an exporter or a producer in the territory of another Party, subject to the consent of the exporter or the producer and the competent authority of the exporting Party; or
(e) such other procedures as the Parties may agree.
2. For the purposes of subparagraph 1(b) of this Article, the customs administration of the importing Party:
(a) may request the customs administration of the exporting Party to assist it in verifying:
(i) the authenticity of a certification of origin; and/or
(ii) the accuracy of any information contained in the certification of origin; and
(b) shall provide the customs administration of another Party with:
(i) the reasons why such assistance is sought;
(ii) the certification of origin, or a copy thereof; and
(iii) any information and documents as may be necessary for the purpose of providing such assistance.
3. To the extent allowed by its domestic law and practices, the customs administration of the exporting Party shall fully co-operate in any action to verify eligibility.
4. The Party conducting a verification shall, through its customs administration, provide the exporter or producer whose good is the subject of the verification with a written determination of whether the good qualifies as an originating good, including findings of fact and the legal basis for the determination.
Article 4.11. Advance Rulings
1. Each Party shall provide for the issuance of written advance rulings, prior to the importation of a good into its territory, to an importer of the good in its territory or to an exporter or producer of the good in another Party, as to whether the good qualifies as an originating good. The importing Party shall issue its determination regarding the origin of the good within sixty (60) days from the date of receipt of an application for an advance ruling.
2. The importing Party shall apply an advance ruling issued by it under paragraph 1 of this Article. The customs administration of each Party shall establish a validity period for an advance ruling of not less than two (2) years from the date of its issuance.
3. The importing Party may modify or revoke an advance ruling:
(a) if the ruling was based on an error of fact;
(b) if there is a change in the material facts or circumstances on which the ruling was based;