Each Party shall within 30 days of the date of entry into force of this Agreement inform the customs administration of the other Party of the issuing body or authority, as appropriate, and contact details of the authorised persons of such body or authority, designated to issue Certificates of Origin under this Agreement.
The Parties shall exchange specimen seals and signatures of the authorised signatories issuing Certificate of Origin.
Each Party shall promptly notify the other Party of any change to its issuing body or authority, as appropriate, and the names, designations, addresses, specimen signatures of authorised persons or seals of such issuing body or authority.
The competent authority in India may, subject to its laws and regulations, grant a status holder certificate to an eligible exporter (hereinafter referred to as “status holder”) established in India to self-certify their Origin Declaration, provided that the status holder accepts full responsibility for declaration of origin of the export product.
The competent authority in India shall after a due process grant status holder certificate to an exporter established in India.
The competent authority in India shall maintain a system to monitor the proper use of status holder certificate. The status holder certificate may be withdrawn if the status holder no longer fulfils the requirements or makes improper use of their status holder certificate.
The competent authority in India shall notify the competent authority in New Zealand of their status holders, their certificate numbers, and any modifications to the list of status holders.
The competent authority in New Zealand may, subject to its laws and regulations, authorise an eligible exporter (hereinafter referred to as “approved exporter”) established in New Zealand to self-certify their Origin Declaration, provided that the approved exporter accepts full responsibility for declaration of origin of the export product.
The competent authority in New Zealand, after due process, shall grant an authorisation number to an approved exporter operating in New Zealand. The authorisation number must be unique for every approved exporter.
The competent authority in New Zealand shall maintain a system to monitor the proper use of an authorisation. The authorisation may be withdrawn if the approved exporter no longer fulfils the requirements or makes improper use of the authorisation.
The competent authority in New Zealand shall notify the competent authority in India of their approved exporters, their authorisation numbers, and any modifications to the list of approved exporters.
Claims for Preferential Tariff Treatment
Except as otherwise provided in Article 3.26 (Denial of Preferential Tariff Treatment), each Party shall grant preferential tariff treatment in accordance with this Chapter to an originating good on the basis of a Proof of Origin.
Unless otherwise provided in this Chapter, for the purposes of claiming preferential tariff treatment, an importing Party shall provide that an importer:
make a declaration that the good qualifies as an originating good;
have a valid Proof of Origin in its possession at the time the declaration referred to in subparagraph (a) is made and provide the same if requested by the importing customs administration; and
if required by an importing Party, demonstrate that the requirements in Article 3.14 (Consignment) have been satisfied.
An importing Party may require that an importer who claims preferential tariff treatment shall provide documents and other information to support the claim.
If a claim for preferential tariff treatment is made without producing the Proof of Origin, the customs administration of the importing Party may deny the preferential tariff treatment or request a guarantee in any of its modalities or may take action necessary in order to preserve fiscal interests, as a pre-condition for the completion of importation operations subject to and in accordance with the laws, regulations and procedures of the importing Party.
Record Keeping Requirements
Each Party shall require that:
its exporters, producers, approved exporter, or status holders and issuing bodies or authorities, as appropriate, retain for at least 5 years from the date of issuance or completion of the Proof of Origin or a longer period in accordance with its relevant laws and regulations, all records4 necessary to prove that the good for which the Proof of Origin was issued was originating; and
its importers retain, for at least 5 years from the date of importation of the good, or a longer period in accordance with its relevant laws and regulations, all records necessary to prove that the good for which preferential tariff treatment was claimed was originating.
The original Proof of Origin document must be retained in a hard copy written format. All other supporting records may be maintained in any medium that allows for prompt retrieval, including in digital, electronic or written form, in accordance with that Party’s laws and regulations.
The exporter, producer, approved exporter, or status holders, shall, upon request of the issuing body or authority, of the exporting Party or the customs administration of the importing Party, make available records for inspection to enable verification of the origin of the good.
4 For greater clarity these records shall include commercial accounting and customs documentation relating to the material(s) used in the production of the good, including but not limited to breakup of costs relating to material(s), labour, other overheads and any other relevant elements such as profits and related components, where these are applicable to the origin criteria.
A Party shall not require a Proof of Origin if the importing Party has waived the requirement or does not require the importer to present a Proof of Origin in accordance with its law.
Post Importation Claim for Preferential Tariff Treatment
Each Party shall provide for an importer of a Party to apply for preferential tariff treatment and a refund of any excess duties paid for a good if the importer did not make a claim for preferential tariff treatment at the time of importation, provided that the good would have qualified for preferential tariff treatment when it was imported into its territory.
As a condition for preferential tariff treatment under paragraph 1, the importing Party may require that the importer, not later than 12 months after the date of importation or a longer period if specified in the importing Party’s laws and regulations, to:
make a claim for preferential tariff treatment;
where applicable, provide a copy of Proof of Origin; and
provide such other documentation relating to the importation of the good as the importing Party may require.
Each Party shall provide that if the importer has reason(s) to believe that the claim for preferential tariff treatment is based on incorrect information that could affect the accuracy or validity of the Proof of Origin, the importer shall correct the importation document, and if applicable, pay any customs duty and penalties owed.
When considering imposing a penalty in relation to a claim for preferential tariff treatment, the customs administrations of the Parties are encouraged to consider a voluntary notification given prior to the discovery of that error by the Party as a mitigating factor, provided that in the case of a notification given by an importer, the importer corrects the error and repays any duties owed.
Verification of Origin and Procedures
For the purposes of determining whether goods imported into a Party from the other Party qualify as originating goods, the importing Party may conduct a verification process. A verification process may be
initiated on importation or after the release of the goods by the customs administration of the importing Party.
A verification process may be initiated based on risk assessment methods, including random selection, or where the importing Party has reasonable doubt as to the authenticity of the origin of the goods.
A verification process for determining whether a good imported into a Party is originating may include the following methods:
a written request or requests for information5 from the importer of the good;
a written request or requests for information on a Certificate of Origin from the exporting party;
a written request or requests for information from the exporter, producer, approved exporter, or status holder of the goods, through the competent authority or issuing authority of the exporting Party,
a request to the competent of the exporting Party to assist in obtaining information from the exporter, producer, approved exporter, or status holder;
a verification visit to the premises of an exporter, producer, approved exporter, or status holder in the territory of the exporting Party,
in the normal course of a verification, the Parties shall utilise the methods in a sequential manner.
For the purposes of subparagraph 3(b):
the customs administration of the importing Party may request the competent or issuing authority, as appropriate, that issued the Certificate of Origin in the exporting Party, to assist it in verifying:
the authenticity of a Certificate of Origin;
the accuracy of any information contained in the Certificate of Origin; and
the authenticity and accuracy of the supporting information and documents, associated to the
5 For the purposes of this Article, where origin has been obtained using a qualifying value content methodology, information shall include breakdown of costs and other relevant elements, such as profit, for the determination of the origin of the good.
Certificate of Origin, and provide copies of the relevant documents where requested;
the customs administration of the importing Party shall provide the competent or issuing authority, as appropriate, with:
the reasons why such assistance is sought;
the Certificate of Origin, or a copy thereof; and
any information and documents as may be necessary for the purpose of providing such assistance; and
the competent or issuing authority in the exporting Party shall provide the information and documentation requested, within:
30 days from the date of receipt of the request, if the request pertains to the authenticity of issue of the Certificate of Origin, including the seal and signatures of the issuing authority;
60 days from the date of receipt of such request, if the request is on the grounds of suspicion of the accuracy of the determination of origin of the product. This period can be extended for up to 30 days, if agreed by the Parties.
Where a written request is made under subparagraph 3(c):
the customs administration of the importing Party shall ensure that the information requested is limited to information pertaining to the fulfilment of the requirements of this Chapter as follows:
Proof of Origin;
information supporting a claim that the good is originating under Article 3.2 (Originating Goods);
information related to the use of the de minimis, direct consignment or cumulation provisions of the Chapter; and
any other information including specific documentation where appropriate;
the customs administration of the importing Party shall provide the exporter, producer, approved exporter or status holder, as appropriate, with:
the reasons why information is being sought;
the Proof of Origin, or a copy thereof; and
any information and documents as may be necessary for the purpose of providing such information; and
the exporter, producer, approved exporter, or status holder, shall provide the information within 60 days from the date of receipt of a request. This period can be extended for up to 30 days as agreed by the exporter, producer, approved exporter or status holder, and the customs administration of the importing Party.
If the importing Party is not satisfied with the outcomes of the information received after completing the processes identified in subparagraphs 3(a) through 3(d) regarding whether the goods qualify as originating goods according to this Chapter, it may request in writing to the customs administration or competent authority of the exporting Party to seek agreement from the exporter, producer, approved exporter, or status holder of the good to undertake for a verification visit to the premises of the exporter, producer, approved exporter, or status holder to observe the facilities used in the production of the goods concerned, including review of the exporter’s, producer’s, approved exporter’s, or status holder’s accounts, or records in relation to the goods concerned or any other check considered appropriate and related to the purpose of the verification visit.
The written request referred to in paragraph 6 shall be as comprehensive as possible and include at a minimum:
the name of the exporter, producer, approved exporter or status holder whose premises are to be visited;
the goods subject to the verification process;
reasons why the outcome(s) of the verification activity conducted under subparagraph 3(a) through 3(d) to that date has not been satisfactory; and
proposed date and time of visit.
The request for a verification visit shall be made no later than 30 days and extendable as agreed by the Parties, following the receipt of the information referred to in subparagraphs 3(a) through 3(d).
Officials from the exporting Party may accompany and assist the officials from the importing Party in their visit to the exporter, producer, approved exporter, or status holder premises. The exporter, producer, approved exporter, or status holder shall identify two or more independent witnesses to be present during the verification visit. The above-mentioned verification visit process, including the actual visit and notification of written determination of the origin of the good, shall
be completed within a maximum period of 6 months from the date when the verification visit was conducted.
When the written consent of the exporter, producer, approved exporter, or status holder for the visit is not obtained within 30 days from the date the customs or competent authority of the exporting Party receives the verification visit request, the customs administration of the importing Party may deny preferential tariff treatment to the good that would have been the subject of the verification visit.
During a verification process, the importing Party shall allow the release of the good, subject to payment of duties or provision of security as provided for in its law.
Upon completion of the verification process, the customs administration of the importing Party shall provide the importer with a written determination of whether the good is originating, along with the basis for the determination. If the exporter, producer, approved exporter, or status holder of the good has been involved in the verification process they shall be notified on the outcome of the verification process.
Upon the issuance of the written determination that the good does not qualify as an originating good, the exporter, producer, approved exporter, or status holder shall be allowed 30 days from the date of receipt of the written determination to provide in writing comments or additional information regarding the eligibility of the good for preferential tariff treatment. The final written determination shall be communicated to the producer or exporter or producer or approved exporter or status holder within 30 days from the date of receipt of the comments or additional information.
Upon the issuance of the written determination that the good qualifies as an originating good, the importing Party shall immediately restore preferential benefits and promptly refunded any duties paid in excess of the preferential duty or release guarantees obtained in accordance with their domestic legislation.
Denial of Preferential Tariff Treatment
The importing Party may deny a claim for preferential tariff treatment if:
it determines that the good does not qualify as originating within the terms of this Chapter or does not satisfy the requirement(s) of this Chapter;
pursuant to a verification under Article 3.25 (Verification of Origin and Procedures), it has not received sufficient
information to determine that the good qualifies as originating including;
the importer, exporter, producer, approved exporter, or status holder, fails to respond to or refuses a written request for information;
the importer, exporter, producer, approved exporter, or status holder, fails to comply with any of the relevant requirements for obtaining preferential tariff treatment;
the importer, exporter, producer, approved exporter, or status holder, or the issuing bodies or authorities, as appropriate, of the exporting Party fail to provide sufficient information and documents, within the prescribed timelines;
the exporter, producer, approved exporter, or status holder, fails to give consent or respond to a request for a verification visit.
If an importing Party denies a claim for preferential tariff treatment, it shall notify the importer in writing along with the reasons for such determination.
If the importing Party establishes non-compliance of the goods with the rules of origin, duties shall be levied in accordance with the law of the importing Party.
Temporary Suspension of Preferential Treatment
If, following a verification procedure, the importing Party establishes that the importer, exporter, producer, approved exporter, or status holder, has persistently or deliberately misrepresented the origin status of the goods, the importing and exporting Party shall consult with a view to take appropriate measures. If these measures are insufficient to prevent a reoccurrence of the misrepresentation, the importing Party may temporarily suspend preferential tariff treatment for that exporter, producer, approved exporter, or status holder.
Based on consultations referred to in paragraph 1 and in any case no longer than 2 months from the date of initiating consultations, a decision whether or not to suspend tariff preference may be taken by the importing Party. The importing Party shall notify the decision, including its reasoning, to the exporting Party, within 30 days after informing the importer accordingly.
If verification procedures have shown that two or more exporters, producers, approved exporters, or status holders, of one Party have
persistently or deliberately misrepresented the origin status of goods in a Proof of Origin for the same good at the six digit HS classification level declared to the customs administration of the importing Party and this same good of these exporters, producers, approved exporters, or status holders, accounts for more than half of the preferential imports of the same good in value terms from the exporting party over a period of 1 year prior to the first verification request, the importing Party may submit the matter to the Technical Committee on Rules of Origin and to the Joint Commission with a view to temporarily suspend preferential treatment for all imports of that good from the exporting Party.
The Technical Committee on Rules of Origin shall discuss the matter and shall make a recommendation to the Joint Commission within 6 months from the date of submission on whether or not the importing Party may suspend the granting of preferential tariff treatment for this good as a temporary measure. The importing Party may only suspend preferential treatment if the recommendation of the Technical Committee on Rules of Origin is agreed by the Joint Commission.
The temporary suspension shall apply only for a period no longer than
6 months or any other period that the Parties agree. Where the condition that gave rise to initial temporary suspension persists at the expiry of the 6-month period, the Party concerned may decide to renew the temporary suspension. Any such renewal shall be subject to periodic consultations within the Technical Committee on Rules of Origin.
Following a temporary suspension at exporter level referred to in paragraph 1 or a Joint Commission decision for temporary suspension as referred to in paragraph 4 and pursuant to the conclusion of consultations between the Parties concerned, and the Parties, where applicable, agree that the exporter, or producer or approved exporter or status holder(s) has adopted appropriate remedial measures, the importing Party shall agree to:
restore preferential benefit to the good with retrospective effect; or
restore preferential benefit to the good with prospective effect, subject to implementation of any mutually agreed measures by one or both Parties.
Each Party shall adopt or maintain measures that provide for the imposition of civil, administrative, and, where appropriate, criminal sanctions for violations of its customs laws and regulations, including
those governing rules of origin, and the entitlement to preferential tariff treatment under this Agreement.
Any importer, exporter, producer, approved exporter, or status holder, who incorrectly represents any material information relevant to the determination of origin of a good may be liable to be penalised under a Party’s law.
Goods in Transport or Storage
In accordance with Article 3.24 (Post Importation Claim for Preferential Tariff Treatment), the customs administration of the importing Party shall grant preferential tariff treatment for an originating good of the exporting Party which, on the date of entry into force of this Agreement:
is in the process of being transported from the exporting Party to the importing Party; or
has not been released from customs control, including an originating good stored in a bonded warehouse regulated by the customs administration of the importing Party.
Minor Discrepancies or Errors
A Party shall not reject a Proof of Origin due to minor errors or discrepancies, such as slight discrepancies between documents, minor omissions of information, spelling, typing or formatting errors, or protrusions from the designated field, provided these minor discrepancies or errors do not create doubt as to the originating status of the good.
The information obtained by the competent authority or customs administration of the importing Party can be utilised for arriving at a decision regarding the determination of origin in respect of a good and can be used in the legal proceedings concerning issues covered by this Chapter and in accordance with each Party’s respective law.
Each Party shall protect the information from any unauthorised disclosure in accordance with their respective law.
Technical Committee on Rules of Origin
The Parties hereby establish a Technical Committee on Rules of Origin composed of government representatives of each Party responsible for rules of origin matters to consider any matters arising under this Chapter and its Annexes.
The Technical Committee on Rules of Origin shall consult either in-person or virtually, upon the request of either Party, to ensure that this Chapter and its Annexes is administered effectively, uniformly and consistently with the spirit and objectives of this Agreement and shall cooperate in the administration of this Chapter and its Annexes and mutually resolve any issues that may arise.
The Technical Committee on Rules of Origin shall consult to discuss possible amendments or modifications to this Chapter and its Annexes that may be necessary to reflect changes to the Harmonized System and taking into account developments in technology, production processes or other related matters.
Exchange of Electronic Data on Origin
The Parties shall establish an electronic system to exchange information on Certificates of Origin on entry into force of this Agreement.
The Parties shall, within 12 months from entry into force of this Agreement, establish an electronic system to exchange information on other forms of Proof of Origin. The introduction of other forms of Proof of Origin, such as Origin Declaration, shall be subject to the establishment of an electronic system to exchange information to establish the authenticity of those self-declarations.
Chapter 4. CUSTOMS PROCEDURES AND TRADE FACILITATION
Article 4.1. Definitions
For the purposes of this Chapter:
“arrival” means:
for India, arrival at a Customs station of clearance and once goods are registered with Customs;
for New Zealand, arrival at a Customs port, Customs airport, or at an alternative place of arrival authorised by Customs;
“customs authority” means:
for India, the Central Board of Indirect Taxes and Customs or its successors;
for New Zealand, the New Zealand Customs Service or its successors;
“customs laws” means those laws and regulations administered, applied or enforced by the customs authority of each Party concerning the importation, exportation and transit or transhipment of goods; and
“customs procedures” mean the measures applied by the customs authority of a Party to goods and to the means of transport that are subject to its customs laws.
This Chapter shall apply to customs laws and customs procedures applied to the importation, exportation and transit or transhipment of goods between the Parties.
General Objectives and Principles
Each Party shall ensure that its customs laws and customs procedures are applied in a manner that is consistent, transparent, non-discriminatory and facilitate trade, including through the expeditious clearance of goods.
Customs laws and customs procedures of the Parties shall conform, where possible, to the international standards and recommended practices of the World Customs Organization (the “WCO”) and other relevant international agreements to which the Parties are party.
The customs authority of each Party shall, to the extent possible, periodically review its customs procedures with a view to simplifying such procedures to facilitate trade.
The Parties shall seek to reinforce their cooperation to promote trade facilitation while ensuring effective customs control.
WTO Agreement on Trade Facilitation
The Parties reaffirm their rights and obligations under the WTO Agreement on Trade Facilitation, set out in Annex 1A to the WTO Agreement (“Agreement on Trade Facilitation”).
Publication and Availability of Information
Each Party shall promptly make available, in a non-discriminatory and easily accessible manner, including on the internet, and as far as practicable in English:
customs laws and, to the extent possible, its administrative rulings of general application governing customs matters;
customs procedures for importation, exportation and transit of goods, including the required forms and documents, and a description of such procedures;