4. Prior to conducting a verification visit pursuant to Paragraph (1)(b), a Party shall, through its customs administration:
(a) deliver a written notification of its intention to conduct the visit to: @) the exporter or producer whose premises are to be visited;
(ii) the customs administration of the other Party at least 5 working days prior to notifying the exporter or producer referred to in 4(a)(i); and
iii) if requested by the other Party, the embassy of the other Party in the territory of the Party proposing to conduct the visit; and
(b) obtain the written consent of the exporter or producer whose premises are to be visited.
5. The notification referred to in paragraph 4 shall include:
(a) the identity of the customs administration issuing the notification;
(b) the name of the exporter or producer whose premises are to be visited;
(c) the date and place of the proposed verification visit;
(d) the object and scope of the proposed verification visit, including specific reference to the good that is the subject of the verification;
(e) the names and titles of the officials performing the verification visit; and (f) the legal authority for the verification visit.
6. Where an exporter or producer has not given its written consent to a proposed verification visit within 30 days of notification pursuant to paragraph 4, the notifying Party may deny preferential tariff treatment to the good that would have been the subject of the visit.
7. Each Party shall provide that, where its customs administration receives notification pursuant to paragraph 4, the customs administration may, within 15 days of receipt of the notification, postpone the proposed verification visit for a period not exceeding 60 days from the date of such receipt, or for such longer period as the Parties may agree.
8. Each Party shall provide that, when the exporter or producer receives notification pursuant to paragraph 4, the exporter or producer may, on a single occasion, within 15 days of receipt of the notification, request the postponement of the proposed verification visit for a period not exceeding 60 days from the date of such receipt, or for such longer period as agreed to by the notifying Party.
9. A Party shall not deny preferential tariff treatment to a good based solely on the postponement of a verification visit pursuant to paragraph 7.
10. Each Party shall permit an exporter or a producer whose good is the subject of a verification visit by the other Party to designate 2 observers to be present during the visit, provided that:
(a) the observers do not participate in a manner other than as observers; and
(b) the failure of the exporter or producer to designate observers shall not result in the postponement of the visit.
11. Each Party shall, through its customs administration, where conducting a verification of origin involving a regional value content, de minimis calculation or any other provision in Chapter IV (Rules of Origin) to which Generally Accepted Accounting Principles may be relevant, apply such principles as are applicable in the territory of the Party from which the good was exported.
12. The Party conducting a verification shall, through its customs administration and within 120 days after it has received all the necessary information, 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. Notwithstanding the foregoing, the customs administration may extend such period for up to 90 days, after notifying the producer or exporter of the good.
13. Where verifications by a Party indicate a pattern of conduct by an exporter or a producer of false or unsupported representations that a good imported into its territory qualifies as an originating good, the Party may withhold preferential tariff treatment to identical goods exported or produced by such person until that person establishes compliance with Chapter IV (Rules of Origin).
14. Each Party shall provide that where it determines that a certain good imported into its territory does not qualify as an originating good based on a tariff classification or a value applied by the Party to one or more materials used in the production of the good, which differs from the tariff classification or value applied to the materials by the other Party, the Party's determination shall not become effective until it notifies in writing both the importer of the good and the person that completed and signed the Certificate of Origin for the good of its determination.
15. A Party shall not apply a determination made under paragraph 14 to an importation made before the effective date of the determination where:
(a) the customs administration of the other Party has issued an advance ruling under Article V.9 or any other ruling on the tariff classification or on the value of such materials, or has given consistent treatment to the entry of the materials under the tariff classification or value at issue, on which a person is entitled to rely; and
(b) the advance ruling, other ruling or consistent treatment was given prior to notification of the determination.
16. Ifa Party denies preferential tariff treatment to a good pursuant to a determination made under paragraph 14, it shall postpone the effective date of the denial for a period not exceeding 90 days where the importer of the good, or the person who completed and signed the Certificate of Origin for the good, demonstrates that it has relied in good faith to its detriment on the tariff classification or value applied to such materials by the customs administration of the other Party.
17. The Parties may also agree to develop other verification procedures under this Article.
Article V.7. Confidentiality
1. Each Party shall maintain, in accordance with its law, the confidentiality ofthe business information collected pursuant to this Chapter and shall protect that information from disclosure that could prejudice the competitive position of the person providing the information.
2. The confidential business information collected pursuant to this Chapter may only be disclosed to those authorities responsible for the administration and enforcement of determinations of origin, and of customs and revenue matters.
Article V.8. Penalties
1. Each Party shall maintain measures imposing criminal, civil or administrative penalties for violations of its laws and regulations relating to this Chapter.
2. Nothing in Article V.2.2, V.4.3 or V.6.9 shall be construed to prevent a Party from applying such measures as may be warranted by the circumstances in accordance with its legislation.
Section III. Advance Rulings
Article V.9. Advance Rulings
1. Each Party shall, through its customs administration, provide for the expeditious issuance of written advance rulings, prior to the importation of a good into its territory, to an importer in its territory or an exporter or a producer in the territory of the other Party, on the basis of the facts and circumstances presented by such importer, exporter or producer of the good, concerning:
(a) whether materials imported from a non-Party country used in the production of a good undergo an applicable change in tariff classification set out in Annex IV.1 (Specific Rules of Origin) as a result of production occurring entirely in the territory of one or both of the Parties;
(b) whether a good satisfies a regional value-content requirement set out in Chapter IV (Rules of Origin);
(c) forthe purpose of determining whether a good satisfies a regional value-content requirement under Chapter IV (Rules of Origin), the appropriate basis or method for value to be applied by an exporter or a producer in the territory of the other Party, in accordance with the principles of the Customs Valuation Agreement, for calculating the transaction value of the good or of the materials used in production of the good;
(d) whether a good qualifies as an originating good under Chapter IV (Rules of Origin);
(e) whether a good that re-enters its territory after the good has been exported from its territory to the territory of the other Party for repair or alteration qualifies for duty-free treatment in accordance with Article III.6 (Goods Re- Entered after Repair or Alteration); or
(f) such other matters as the Parties may agree.
2. Each Party shall adopt or maintain procedures for the issuance of advance rulings, including a detailed description of the information reasonably required to process an application for a ruling.
3. Each Party shall provide that its customs administration:
(a) may, at any time during the course of an evaluation of an application for an advance ruling, request supplemental information from the person requesting the ruling;
(b) shall, after it has obtained all necessary information from the person requesting an advance ruling, issue the ruling within 120 days; and
(c) shall provide to the person requesting the ruling a full explanation of the reasons for the ruling.
4. Subject to paragraph 6, each Party shall apply an advance ruling to importations into its territory of the good for which the ruling was requested, beginning on the date of its issuance or such later date as may be specified in the ruling.
5. Each Party shall provide to any person requesting an advance ruling the same treatment, including the same interpretation and application of provisions of Chapter IV (Rules of Origin) regarding a determination of origin, as it provided to any other person to whom it issued an advance ruling, provided that the facts and circumstances are identical in all material respects.
6. The issuing Party may modify or revoke an advance ruling:
(a) if the ruling is based on an error:
(i) of fact;
(ii) in the tariff classification of a good or a material that is the subject of the ruling;
(iii) in the application of a regional value-content requirement under Chapter IV (Rules of Origin); or
(iv) in the application of the rules for determining whether a good that re-enters its territory after the good has been exported from its territory to the territory of the other Party for repair or alteration qualifies for duty- free treatment under Article III.6 (Goods Re-Entered after Repair or Alteration);
(b) if the ruling is not in accordance with an interpretation agreed upon by the Parties regarding Chapter III (National Treatment and Market Access of Goods) or Chapter IV (Rules of Origin);
(c) if there is a change in the material facts or circumstances on which the ruling is based;
(d) to conform with a modification of Chapter III (National Treatment and Market Access of Goods), Chapter IV (Rules of Origin), this Chapter or any Uniform Regulations; or
(e) to conform with a judicial decision or a change in its domestic law.
7. Each Party shall provide that any modification or revocation of an advance ruling shall be effective on the date on which the modification or revocation is issued, or on such later date as may be specified therein, and shall not be applied to importations of a good that have occurred prior to that date, unless the person to whom the advance ruling was issued has not acted in accordance with its terms and conditions.
8. Notwithstanding paragraph 7, the issuing Party shall postpone the effective date of such modification or revocation for a period not exceeding 90 days where the person to whom the advance ruling was issued demonstrates that it has relied in good faith to its detriment on that ruling.
9. Each Party shall provide that where its customs administration examines the regional value content of a good for which it has issued an advance ruling pursuant to subparagraph 1(b), (c), (d) and (e), it shall evaluate whether:
(a) the exporter or producer has complied with the terms and conditions of the advance ruling;
(b) the exporter's or producer's operations are consistent with the material facts and circumstances on which the advance ruling is based; and
(c) the supporting data and computations used in applying the basis or method for calculating value or allocating cost were correct in all material respects.
10. Each Party shall provide that where its customs administration determines that any requirement in paragraph 9 has not been satisfied, it may modify or revoke the advance ruling as the circumstances may warrant.
11. Each Party shall provide that, where the person to whom an advance ruling was issued demonstrates that it used reasonable care and acted in good faith in presenting the facts and circumstances on which the ruling was based, and where the customs administration of a Party determines that the ruling was based on incorrect information, the person to whom the ruling was issued shall not be subject to penalties.
12. Each Party shall provide that where it issues an advance ruling to a person that has misrepresented or omitted material facts or circumstances on which the ruling is based, or has failed to act in accordance with the terms and conditions of the ruling, the Party may apply such measures as may be warranted by the circumstances in accordance with its laws.
13. The Parties shall provide that an advance ruling will remain in effect and will be honoured if there is no change in the material facts or circumstances on which it is based.
14. Each Party may provide that, where application for an advance ruling is made to its customs administration that involves an issue that is the subject of:
(a) a verification of origin;
(b) areview by or appeal to the customs administration; or
(c) judicial or quasi-judicial review in its territory;
the customs administration may decline or postpone the issuance of the ruling.
Section IV. Review and Appeal of Advance Rulings and Origin Determinations
Article V.10. Review and Appeal
1. Each Party shall grant substantially the same rights of review and appeal of determinations of origin and advance rulings issued by its customs administration as it provides to importers in its territory, to any person:
(a) who completes and signs a Certificate of Origin for a good that has been the subject of a determination of origin; or
(b) who has received an advance ruling pursuant to Article V.9.1.
2. Further to Articles XII.4 (Administrative Proceedings) and XII.5 (Review and Appeal), each Party shall provide that the rights of review and appeal referred to in Paragraph 1 shall include access to:
(a) at least one level of administrative review independent of the official or office responsible for the determination under review; and
(b) in accordance with its domestic law, judicial or quasi-judicial review of the determination or decision taken at the final level of administrative review.
Section V. Uniform Regulations
Article V.11. Uniform Regulations
1. The Parties shall establish, and implement, through their respective laws, regulations or administrative policies, by the date of entry into force of this Agreement, and at any time thereafter, upon agreement of the Parties, Uniform Regulations regarding the interpretation, application and administration of this Chapter and other matters as may be agreed by the Parties.
2. Each Party shall implement any modification of or addition to the Uniform Regulations no later than 180 days after the Parties agree on such modification or addition, or such other period as the Parties may agree.
Section VI. Cooperation
Article V.12. Cooperation
1. Each Party shall notify the other Party of the following determinations, measures and rulings, including, to the greatest extent practicable, those that are prospective in application:
(a) a determination of origin issued as the result of a verification conducted pursuant to Article V.6.1;
(b) a determination of origin that the Party is aware is contrary to:
(i) a ruling issued by the customs administration of the other Party with respect to the tariff classification or value of a good, or of materials used in the production of a good, or the reasonable allocation of costs where calculating the net cost of a good, that is subject of a determination of origin; or
(ii) consistent treatment given by the customs administration of the other Party with respect to the tariff classification or value of a good, or of materials used in the production of a good, or the reasonable allocation of costs where calculating the net cost of a good, that is the subject of a determination of origin;
(c) a measure establishing or significantly modifying an administrative policy that is likely to affect future determinations of origin; and
(d) an advance ruling, or a ruling modifying or revoking an advance ruling, pursuant to Article V.9.
2. The Parties shall cooperate:
(a) in the enforcement of their respective customs-related laws or regulations implementing this Agreement, and under any customs mutual assistance agreement or other customs-related agreement to which they are party;
(b) to the extent practicable and for purposes of facilitating the flow of trade between them, in such customs-related matters as the collection and exchange of statistics regarding the importation and exportation of goods, the harmonization of documentation used in trade, the standardization of data elements, the acceptance of an international data syntax and the exchange of information;
(c) to the extent practicable, in the harmonization of customs laboratories methods and exchange of information and personnel between the customs laboratories; and
(d) to the extent practicable, in jointly organizing training programs on customs- related issues, which include training for the officials and users who participate directly in customs procedures.
3. For purposes of this Article, the Parties shall enter into a Customs Mutual Assistance Agreement between their customs administrations.
Article V. 13. The Customs Sub-Committee
1. The Parties hereby establish a Customs Sub-Committee, comprising representatives of each Party's customs administration. The Sub-Committee shall meet as required and at any other time on the request of either Party and shall:
(a) endeavor to agree on:
(i) the uniform interpretation, application and administration of Article I1.4 (Temporary Admission of Goods), III.5 (Duty-Free Entry of Certain Commercial Samples and Printed Advertising Materials) and I1.6 (Goods Re-Entered after Repair or Alteration), Chapter IV (Rules of Origin), this Chapter, and any Uniform Regulations;
(ii) tariff classification and valuation matters relating to determinations of origin;
(iii) equivalent procedures and criteria for the request, approval, modification, revocation and implementation of advance rulings;
(iv) revision to the Certificate of Origin;
(v) any other matter referred to it by a Party or the Committee on Trade in Goods and Rules of Origin established under Article 1.14.1 (Consultations and Committee on Trade in Goods and Rules of Origin); and
(vi) any other customs-related matter arising under this Agreement;
(b) consider:
(i) the harmonization of customs-related automation requirements and documentation; and
(ii) proposed customs-related administrative or operational changes that may affect the flow of trade between the Parties' territories;
(c) report periodically to the Committee on Trade in Goods and Rules of Origin and notify it of any agreement reached under this paragraph; and
(d) refer to the Committee on Trade in Goods and Rules of Origin any matter on which it has been unable to reach agreement within 60 days of referral of the matter to it pursuant to subparagraph (a)(v).
2. Nothing in this Chapter shall be construed to prevent a Party from issuing a determination of origin or an advance ruling relating to any matter under consideration by the Customs Sub-Committee or from taking such other action as it considers necessary, pending a resolution of the matter under this Agreement.
Article V.14. Definitions
For purposes of this Chapter:
commercial importation means the importation of a good into the territory of a Party for the purpose of sale, or any commercial, industrial or other like use;
customs administration means the competent authority that is responsible under the law of a Party for the administration of customs laws and regulations;
determination of origin means a determination as to whether a good qualifies as an originating good in accordance with Chapter IV (Rules of Origin);
exporter in the territory of a Party means an exporter located in the territory of a Party and an exporter required under this Chapter to maintain records in the territory of that Party regarding exportations of a good;
identical goods means goods that are the same in all respects, including physical characteristics, quality and reputation, irrespective of minor differences in appearance that are not relevant to a determination of origin of those goods under Chapter IV (Rules of Origin);
importer in the territory of a Party means an importer located in the territory of a Party and an importer required under this Chapter to maintain records in the territory of that Party regarding importations of a good;
indirect material means "indirect material" as defined in Article 1V.15 (Definitions);
material means "material" as defined in Article IV.15 (Definitions);
net cost of a good means "net cost of a good" as defined in Article IV.15 (Definitions);
preferential tariff treatment means the duty rate applicable to an originating good;
producer means "producer" as defined in Article 1V.15 (Definitions);
production means "production" as defined in Article IV.15 (Definitions);
transaction value means "transaction value" as defined in Article IV.15 (Definitions);
Uniform Regulations means "Uniform Regulations" established under Article V.11 (Uniform Regulations);
used means "used" as defined in Article IV.15 (Definitions); and
value means value of a good or material in accordance with the Customs Valuation Agreement.
Chapter VI. Emergency Action
Article VI.1. Article XIX of the GATT 1994 and the Agreement on Safeguards of the WTO.
Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Agreement on Safeguards of the WTO Agreement and any successor agreements.
Article VI.2. Bilateral Actions
1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury:
a. suspend the further reduction of any rate of duty provided for under this Agreement on the good;
b. increase the rate of duty on the good to a level not to exceed the lesser of: i. the most-favoured-nation (MFN) applied rate of duty in effect at the time the action is taken; and ii. the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or
c. in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding season immediately preceding the date of entry into force of this Agreement.
2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1:
a. a Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the institution of a proceeding that could result in the application of emergency action against a good originating in the territory of the other Party;
b. any such action shall be initiated no later than 1 year after the date of institution of the proceeding;
c. no action may be maintained:
i. for a period exceeding 3 years; or
ii. beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken;
d. during the transition period, the Parties may apply emergency actions to the same good no more than 2 times;
e. on the termination of a first action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex III.3.1 (Tariff Elimination) for the staged elimination of the tariff, would have been in effect 1 year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action: