[CHAPTER] ON [CUSTOMS] PROCEDURES RELATED TO RULES OF ORIGIN

[1.1 Certification]

[The [certificate][certification] of origin is [the document], [in written] or [electronic form] [with the handwritten signature of the authorized issuer] [accrediting][certifying] that the goods are in compliance with the provisions governing origin set forth in [this Agreement] [[Chapter] on Rules of Origin]. [The certificate referred to in Annex 1 shall be used to certify that a good exported from the territory of a Party into the territory of another Party qualifies as originating.]]

1.2.1^A. The [certificate][certification] of origin will be issued [to][by] [the producer] [and/or] [the exporter] [and/or] [the entities authorized by the exporting Party for such purpose] [and/or] [the importers]. [[The [certificate][certification] of origin shall be done in the country of final production.]

[1.2.1^B. Each Party shall allow an importer to make a claim for preferential tariff treatment under this Agreement, based on:

a) a written or electronic certification by the exporter or producer, or

b) the importer’s knowledge of whether the good qualifies as an originating good, including reasonable reliance upon information in the importer’s possession that the good qualifies as originating .]

[1.2.2^A. When the exporter is not the producer of the good, the [exporter][competent government authorities or the authorized entity][the importer] shall be the one to draw up and sign [the certificate][the certification], based on [some of][all of] the following alternatives:

a) [their knowledge of whether the good qualifies as originating;][and][or]

b) [[reasonable reliance on] a [representation] [sworn, written] [declaration] by the producer, to the effect that the good qualifies as originating;][and][or]

c) [a [certificate][certification] of origin issued by the producer.]

[The producer of the good shall voluntarily provide the exporter with the corresponding documentation.]

[Nothing in Articles 1.2.1 and 1.2.2 shall be construed to require an exporter or producer to provide a written certificate to any other person.]

[1.2.2^B. Such certification by the producer or exporter of the good may be completed on the basis of:

i) the producer’s or exporter’s knowledge of whether the good qualifies as an originating good, or

ii) in the case of the exporter, reasonable reliance upon the producer’s written certification that the good qualifies as originating.]

[1.2.3. The certificate referred to in paragraph 1.1 shall contain a sworn declaration by the exporter of the good, attesting to total compliance with the origin provisions of the Agreement and the truthfulness of the information contained therein.]

1.2.4. The [certificate] [certification] of origin shall cover [a single importation of one or more goods][or][multiple importations of identical goods by the same importer, within a specific period not to exceed [[1] year][… months] into the territory of one of the Parties.] [The [certificate][certification] of origin shall cover a single exportation and may not be issued prior to the date on which the commercial invoice is issued.] [The commercial invoice shall be presented in every case along with the [certificate][certification] of origin].[The description of the good shall match the code of the nomenclature recorded on the invoice and shall be presented upon requesting customs clearance.]

1.2.5 [For the purposes of its presentation for customs clearance:]

a) The [certificate][certification] of origin shall be valid [for …. days] [for …years] from the date it was issued.

b) The declaration of origin shall be valid for a maximum of [….years] from the date it was issued, [unless there is a change in the conditions of production before then].

1.2.6. The [certificate][certification] of origin shall be filled out in the language of the importing Party or the exporting Party. [In the latter case, the competent authority of the importing Party may require that the document be translated.]

[1.2.7. In the event that the goods are temporarily cleared, admitted or stored under control of the customs authority of the Party of destination, the [certificate][certification] of origin shall remain in effect for the additional amount of time the customs administration has established for such operations or regimes.]

[1.2.8. When the goods being traded are invoiced from a third country, regardless of whether or not it is a Party to the Agreement, the producer or exporter of the country of origin shall declare that the goods will be marketed by a third party, and provide the name and other information of the firm that ultimately invoices the operation to its final destination .]

[Once the Agreement has entered into force, the Parties shall adopt a single format for the [certificate][certification] of origin and a single format for the declaration of origin of the producer, which may be modified [by the agency responsible for administering the Agreement], subject to agreement of the Parties].

[The [certification][certificate] of origin is not to be limited to a prescribed format, but a Party may require that it contain the following core set of data elements (to be determined by the Parties within the framework of the negotiations).]

[For the purposes of this [Chapter] the Parties shall identify a necessary core set of data elements to certify the origin of the goods.]

[1.4.1. For the [certificate][certification] of origin to be issued, the certifying authority shall be presented with the corresponding request, along with, where applicable, the declaration of origin as described in Article 1.2.2 and all the background information necessary to document that the good meets the applicable requirements, such as:

a) name, corporate name, or commercial name of the requesting party;

b) legal domicile for tax purposes;

c) name of the good to be exported and its tariff classification under the H.S. The description of the good shall match the description in the tariff classification under the H.S. and with the one recorded on the exporter’s commercial invoice;

d) evidence showing that the good to be exported complies with the provisions of Articles of the [Chapter] on Rules of Origin and with the other conditions under this Agreement;

e) evidence for the following components of the good:

i) national materials, components, and/or parts and pieces,

ii) materials, components, and/or parts and pieces originating in other Party,

iii) non-originating materials, components, and/or parts and pieces, indicating origin, tariff classification under the H.S., and, where applicable, value pursuant to Article of the [Chapter] on Rules of Origin and the percentage they represent in the value of the final good,

f) descriptive summary of the production process; and,

g) sworn statement attesting the truthfulness of the information provided.]

[1.4.2. The issuance of the [certificate][certification] of origin shall be the responsibility of the certifying authorities of each Party. Each Party shall designate one or more certifying authorities to be responsible for issuing [certificates][certifications] of origin. The certifying authorities may act under federal, national, state or departmental jurisdiction, [or any other political type of administrative division that the Parties have] having due regard to their requirements for standing technical capacity and suitability for providing such service. The certifying authority established by each Party shall be responsible for monitoring the issuance of the [certificate][certification] of origin.]

[1.4.3. Requests for the issuance of the [certificate][certification] of origin shall be made by the final producer or exporter of the good in question. The [certificate][certification] of origin shall be issued no later than five (5) working days after submission of the corresponding request, in accordance with the stipulations of this Article. Certificates shall not be valid unless all their fields are duly filled out.]

[1.4.4. The requesting party shall keep the necessary background information documenting compliance of the good with the prescribed requirements and make it available to the certifying authority that is to issue the [certificate][certification] or to the customs authority of the importing Party when so requested.]

[1.5.1. Without prejudice to the above provisions on the issuance of certificates, the certifying authority may issue a [certificate][certification] of origin on an exceptional basis after the good or goods in question have been exported, if:

a) it was not issued at the time of export on account of errors, involuntary omissions, or special circumstances; or,

b) it can be shown to the satisfaction of the certifying authority that a [certificate][certification] of origin was issued but was not accepted at the time of importation for technical reasons.

1.5.2. For the purposes of implementation paragraph 1.4.1, in its request, the exporter or producer shall indicate where and when the goods covered by the corresponding [certificate][certification] of origin were exported and the reasons for the request.

1.5.3. The certifying authority may subsequently issue a [certificate][certification] of origin only after verifying that the information provided by the exporter or producer in the request matches the information in the corresponding file, and in the case of the goods referred to in paragraph 1.5.1 a) it shall be accepted by the customs authority of the importing Party within 180 days following the date on which importation into that Party occurred.

1.5.4. A certificate of origin issued subsequently shall be endorsed with the following phrase: “ISSUED SUBSEQUENTLY”, and recorded in the “Comments” field on the certificate of origin.]

[1.6.1 Should a [certificate][certification] of origin be stolen, lost, or destroyed, the exporter may request a duplicate from the issuing certifying authority that issued it. Said duplicate shall be issued on the basis of the export documents that it already has, pursuant to the terms of issuance of the certificates.

1.6.2. A duplicate issued in this fashion shall be marked with the word “DUPLICATE” in the “Comments” field of the duplicate certificate of origin for the good.

1.6.3. The duplicate, on which the issue date of the original [certificate][certification] of origin shall appear, shall be valid as of that date].

[The Parties shall not require a [certificate][certification] of origin in the following instances:

a) for commercial or non-commercial importation of goods [as low value shipments] [whose customs value does not exceed [1,000] U.S. dollars or its equivalent in the domestic currency of the importing Party [or a greater value established by each Party]];

b) for importations of goods for which the importing Party has waived the requirement to present a [certificate][certification] of origin.

These exceptions shall only apply in the event that the importation is not part of a series of importations made for the purpose of evading compliance with the certification of origin requirements.]

[The Parties establish the certificate of provenance for the purpose of identifying those goods that are re-exported from a duty-free area of one of the Parties to the territory of another Party, as goods from a third country, provided that the following is observed:

a) the goods have remained under Customs supervision by the re-exporting Party;

b) the goods have not undergone subsequent transformation or any other operation, except commercialization, unloading, reloading, or whatever other operation deemed necessary for the adequate maintenance of those goods; and

c) there is documentary evidence to that effect.

The certificate of provenance shall be filled up and signed by the re-exporter located in the duty-free zone and shall be approved by the [competent][customs] authorities.

Each Party may require that importers within their territory, when importing, from duty-free zones, goods for which they are requesting tariff preferences, must present the corresponding certificate of provenance and the corresponding [certificate][certification] of origin for goods that qualify as originating, under the [Chapter] on Rules of Origin of this Agreement.

Each Party shall establish, through their duty-free zones, a mechanism for administration and control of such goods, for the purposes of applying this point.]

[1.9.1. Each Party shall establish an official body which shall be responsible for issuing [certificates][certifications] of origin and shall coordinate all matters relating to the actions of the certifying authorities.]

[1.9.2 Each Party shall notify to the other Parties the names of the certifying entities, as well as the registry of the signatures of the officials accredited to issue [certificates][certifications] of origin and shall maintain an up-to-date record of the names, signatures and seals of the officials who are authorized to issue them. Each Party shall send to the agency responsible for administering the Agreement, with sufficient advance notice, any changes to the record, indicating the dates as of which the officials are authorized or no longer authorized to issue [certificates][certifications] of origin.]

[The entity responsible for administering the Agreement shall maintain an up-to-date record of the certifying entities authorized by each Party to issue [certificates][certifications] of origin. In addition, it will maintain a list of the names, signatures and stamps of the officials authorized to sign the [certificates][certifications] of origin].[The entity responsible for administering the Agreement shall communicate the changes to the other Parties no later than … calendar days after the date that the notification is received. Such changes shall take effect once they are received by the Parties. In addition, by the end of each year, the agency responsible for administering the Agreement shall consolidate the record and circulate it among the Parties.]

[1.9.3 The certifying entities of each Party shall:

a) number consecutively the [certificates][certifications] issued and file a copy for a minimum period of ….years, as of the date of issue thereof. Such file shall also include all the records that serve as a basis for the issue of the [certificate][certification].

b) maintain a permanent record of all the [certificates][certifications] of origin issued, which shall contain, at a minimum, the number of the certificate, the name of the applicant, and the date it was issued.]

[1.9.4. The competent government agency in matters of origin of each Party, shall have the following functions and obligations:

a) to verify, where necessary, the declarations of origin presented;

b) to supervise the certifying entities authorized to issue [certificates][certifications] of origin;

c) to follow the procedures referred to in this [Chapter]; and

d) to provide the Parties and the entity responsible for administering the Agreement with information and cooperation in relation to the matters covered in this [Chapter].]

[1.9.5. The competent government agency in matters of origin shall require that the agencies authorized to certify the origin of goods comply with the following obligations:

a) verify the truth of the declarations of origin presented;

b) present reports on compliance with this [Chapter];

c) provide the means necessary for supervising their actions; and

d) provide the other Parties with the administrative co-operation required for the control of proof of origin.]

[1.10.X. Each Party shall grant any claim for preferential tariff treatment under the Agreement made in accordance with its provisions, unless it possesses information that the claim is invalid.]

1.10.1 Each Party [shall require][may require] [that] an importer who applies for preferential tariff treatment for a good imported into its territory from the territory of another Party to:

a) declare in the import document required by its law, [based on a valid [certificate][certification] of origin,] that the good qualifies as originating;

[b) have the [certificate][certification] of origin [issued by another person] in its possession at the time the declaration referred to in sub-paragraph a) is made; [[except] in those circumstances where such certification [forms the basis for a claim] [is not required];]]

c) provide a copy of the [certificate][certification] of origin when its customs authority so requests;

[d) submit without delay a corrected import document and pay the corresponding customs duties when the importer has reason to believe that the [certificate][certification] of origin on which its import declaration is based contains inaccurate information. When the importer [voluntarily] complies with the above obligations, it shall not be penalized; [and]]

[e) prove to the customs authority, when appropriate, that the requirements [have been met] for [re-exportation,] direct shipment, transit and transshipment established in the [Chapter] on Rules of Origin.][, when its customs authority so requests.]]

[f) in those cases where an importer is making a claim for preferential treatment on the basis of certification by a producer or exporter, that the importer, at the importer’s option, either provide or have in place an arrangement to have the producer or exporter provide, at the request of that Party’s customs administration, all information relied upon by such producer or exporter in making such certification;

g) in those cases where an importer is making a claim for preferential treatment on the basis of information in its possession, that the importer provide substantiating information upon request.]

[1.10.2 Each Party [shall][may] provide that, when an importer fails to meet any of the requirements established in this [Chapter], in the [Chapter] on Rules of Origin or in the [Chapter] on National Treatment and Market Access, the preferential tariff treatment being requested for the good imported from the territory of another Party [shall][may] be denied.]

[1.10.3 An importer requesting preferential tariff treatment shall keep the [certificate][certification] of origin and all documentation relative to the importation for a period of [5][6] years from the date of the importation.]

[1.10.4 Each Party shall provide that, where, at the time of importation, an importer has not requested preferential tariff treatment for a good that would have qualified as originating, the importer may [request that its customs authority] refund the excess customs duties paid], make a claim for preferential treatment and apply for a refund] within [4][1] …year[s] [180 days] from the date of the importation, provided that the request is accompanied by:

a) a written declaration, stating that the good did qualify as an originating good at the time of importation;

b) a copy of the valid [certificate][certification] of origin [covering the imported goods, issued in accordance with the terms of Article 1.2;] and,

c) any other documentation relating to the importation of the goods as that Party’s customs authority may require.]

[1.10.5. If the Customs Authorities of the importing Party for any reason do not consider the [certificate][certification] of origin presented by the importer to be adequate or accurate, it may not interrupt the process of importation of the merchandise. In such case, the customs authorities of the importing Party may take any action necessary to safeguard the fiscal interests of the importing Party, in addition to requesting the appropriate information from the authorized body in the exporting Party.]

[1.11.1 Each Party shall require that its exporter or producer, [who has [filled out][provided] and signed a [certificate][certification] or [declaration] of origin] [that has presented a request to the certifying authority on the basis of which a [certificate][certification] of origin was issued,], shall deliver a copy to its [ customs authority][the customs authority of the importing country] [when the latter so requests].]

[1.11.2 Each Party shall stipulate that when an exporter or producer who [has [filled out and signed][executed] a [certificate][certification] or a [declaration][representation] of origin] [has presented a request to the certifying entity on the basis of which a [certificate][certification] of origin was issued] has reason to believe that it contains incorrect information must act without delay to notify in writing any change that could affect the accuracy or validity of the certificate [the request submitted to the certifying authority that issued the certificate of origin so that, if deemed necessary,] a corrected [certificate of origin must be] [certificate][certification] or [declaration][representation] of origin may be issued to all persons to whom it may have delivered as well as [the competent authority][its customs administration]. In these cases, the exporter or producer [can not be] penalized for having submitted an incorrect [certification] [request][declaration].]

[1.11.3 The customs administration of the exporting Party shall communicate in writing to the customs administration of the importing Party regarding the notification referred to in Article 1.11.2. When the customs administration of the importing Party learns of the use of false [certificates][certifications] of origin, the customs administration of the exporting Party shall be promptly notified.]

[1.11.4 Each Party shall stipulate that the delivery of a false [certificate][certification] or declaration of origin by an exporter or producer, or any false documents presented by the exporter or producer for the issuance of the corresponding [certificate][certification] of origin, indicating that a good that is to be exported to the territory of another Party qualifies as originating, shall have the same legal consequences, with the appropriate modifications as required by the circumstances, as would apply to an importer in its territory who made false statements or representation in contravention of its customs laws and regulations. In addition, it may apply such measures as warranted by the circumstances, when the exporter or producer fails to comply with any of the requirements of this [Chapter].]

[1.12.1 Each Party shall stipulate that:

a) [The exporter, the producer][The certifying entity] that issues a [certificate][certification] or a [declaration] of origin shall maintain, for a [minimum] period of [5] [6] years from the date the [certificate][certification] or [declaration] of origin was [issued] [signed], all records and documents related to the origin of the good required to demonstrate that a good qualifies as originating, including records associated with:

i) the purchase of, cost of, value of, and payment for, the good that is exported from its territory;

ii) the 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

iii) the production of the good in the form in which the good is exported from its territory.

In an origin verification process, when requested, the exporter or producer shall provide the customs authority of the importing Party with the records and documents referred to. If the records and documents are not in the possession of the exporter or producer, he may ask the producer of the good or supplier of the materials to furnish the records and documents so that, with the latter’s authorization, he can deliver them to the customs authority conducting the verification;]

[1.12.X. Each Party may stipulate that:]

[b)] The importer claiming preferential tariff treatment [into the territory of the importing Party] shall maintain and make available to the customs administration in that territory, for a [minimum] period of [5][6] years from the date of importation of the good, a copy of the [certificate] [certification] or [declaration] of origin [, if applicable,] and all other documents required by the importing Party relating to the importation of the good. ]

[1.12.2. The competent government authorities of the Parties may examine the [certificates][certifications] of origin after entry for consumption or customs release of the good and, if relevant, apply the corresponding sanctions in accordance with their national legislation.]

[The competent authority of the FTAA on Administration of the Rules of Origin shall be a [Committee] [Working Group] that shall be responsible for the application, interpretation, administration and modification of this Rules of Origin Regime and Customs Procedures, which shall be subordinate to the TNC and shall be composed of a representative of the competent authority of each Party, is hereby established. It shall meet at least once a year, or at the request of any of them.]

[For the purposes of this [Chapter]:

a) The Harmonized System [in force and effect as of the date of this [Agreement] shall be the basis for the tariff classification in this [Chapter].]

[b) The determination of whether a heading or subheading under the Harmonized System provides for and specifically describes both a good and its parts shall be made on the basis of the nomenclature of the heading or subheading and the General Rules of Interpretation, the Chapter Notes or the Section Notes of the Harmonized System.]

[c) The Customs Valuation Agreement [of the WTO] shall be used [as a basis] for determining the value of a good or a material, and it shall be considered that:

i) the principles of the Customs Valuation Agreement shall apply to domestic transactions, with the changes required by the circumstances, as they would be applied to international transactions;

ii) the provisions of this [Chapter] shall prevail over those of the Customs Valuation Agreement;

[iii) one Party may only accumulate origin with goods originating from countries to which this Agreement applies;]

[iv) in cases where there is no specific common rule of origin with regard to a good for all the Parties, the rules of origin of this [Chapter] shall apply only between the exporting Party and the importing Party, considering the other Parties that do not have said specific common rule of origin as non-Party countries.]]

[2.3.1. The [Committee] [Working Group] on Rules of Origin and Customs Procedures, established by the Parties shall present a report on the proposed modifications to the entity responsible for the administration of the Agreement, which shall issue any rulings it may consider pertinent.]

[2.3.2. The [Committee][Working Group] on Rules of Origin and Customs Procedures, shall have the following functions, inter alia:

a) propose to the TNC amendments to this [Chapter], as required;

b) endeavor to agree on:

i) the interpretation, application, and administration of this [Chapter];

ii) tariff classification and valuation matters relating to rulings to determine origin;

iii) modifications to the [certificate][certification] or [declaration] of origin referred to in Article 1.1;

iv) any other matter referred to it by a Party;

c) examine proposals for customs-related administrative or operational modifications related to this section that could affect trade flows among the Parties.]

[Any Party considering that this [Chapter] needs to be modified to take into account changes in productive processes or other issues may submit the modification proposal to the other Parties, together with the supporting reasons and studies, for examination and adoption of such measures as appropriate in accordance with this [Chapter].]

[No provision in this [Chapter] shall be construed as preventing a Party from issuing a ruling to determine origin or from taking such other action as it considers necessary because it is awaiting resolution of a matter submitted to this Committee.]

[The Parties agree that advance rulings on origin may be issued, at the request of an exporter from a third country, an importer or any person having a good reason to do so, in keeping with the legal requirements set forth in the national legislation of the respective countries.]

[2.4.1 Each Party shall stipulate that, through its [competent ][customs ] authorities, advance rulings shall be promptly issued, in writing, prior to the importation of a good into its territory. These advance rulings shall be issued by the [competent][customs] authorities of the territory of the importing Party at the request of the importer, or of the exporter or producer of the other Party, on the basis of the facts and circumstances stated by them, and with regard to:

a) whether the good qualifies as originating, in accordance with the [Chapter] on Rules of Origin;

b) [whether the method applied by the exporter or producer in the territory of another Party, in accordance with the principles of the Customs Valuation Agreement to calculate the value of a good or of the materials used in the production of a good, for which the advance ruling is requested, is appropriate for determining whether the good satisfies the regional value content, in accordance with the [Chapter] on Rules of Origin;]

c) [whether a good that re-enters its territory after having been exported from its territory to the territory of another Party for the purposes of repair or alteration qualifies to receive duty-free treatment, in accordance with the article on goods re-imported after being repaired or altered in the [Chapter] on…;]

d) [whether the marking of the country of origin made or proposed for a good meets the requirements established in the article on country of origin marking; and]

e) other issues agreed by the Parties.]

[2.4.2 Each Party shall adopt procedures for issuing advance rulings, to include:

a) information reasonably required in order to process the request;

b) the power of its [competent authority][customs administration] to at any time request additional information from the person requesting the advance ruling during the process of evaluating the request;

c) the obligation of the [competent authority][customs administration] to issue the advance ruling in a complete, substantiated and reasoned [manner], once it has obtained all the necessary information from the person requesting it.]

[2.4.3 Each Party shall apply advance rulings to imports to its territory, as of the date of the issuance of the ruling, or as of a later date indicated therein, unless the advance ruling is amended or repealed, pursuant to the provisions of paragraph 2.4.5.]

[2.4.4 Each Party shall grant [any] [other] person requesting an advance ruling the same treatment, interpretation, and application of the provisions of the [Chapters] on Market Access and Rules of Origin as it has granted to [any] [other] person to whom it has issued an advance ruling, when the facts and circumstances are identical in all essential respects.]

[2.4.5 The advance ruling may be amended or repealed by the [competent ][customs] authorities in the following cases:

a) when the advance ruling was based on an error:

i) of fact;

ii) in the tariff classification of the good or of the materials that are the object of the ruling;

iii) [in the application of the regional value content, pursuant to the [Chapter] on Rules of Origin;] or

iv.) [in the application of the rules for determining whether a good that re-enters its territory after having been exported from its territory to the territory of another Party for repair or alteration qualifies to receive duty-free treatment, pursuant to the [Chapter] on National Treatment and Market Access;]

b) [when the ruling is not consistent with an interpretation that the Parties have agreed upon, with regard to the [Chapter] on [National Treatment and Market Access] [Rules of Origin] or an amendment regarding the country of origin marking;]

c) [when there is a change in the circumstances or facts on which it was based;]

d) [for the purpose of applying an amendment to the [Chapter] on National Treatment and Market Access, to [Chapter] on Rules of Origin, to this [Chapter], or to the Uniform Regulations;] or

e) [for the purpose of enforcing an administrative or judicial decision or adapting to a change in the legislation of the Party that has issued the advance ruling.]]

[2.4.6 Each Party shall stipulate that any amendment or repeal of an advance ruling shall take effect on the date it is issued or on a later date established therein, and may not be applied to importations of goods made prior to these dates, unless the person to whom it was issued failed to act in accordance with its terms and conditions.][Nevertheless, if an importer requests retroactive application of an amendment or repeal of such a ruling, a Party may grant retroactive application.]

[2.4.7 The Party issuing an advance ruling may review it to establish that it is still valid. [Nevertheless, the Party issuing the advance ruling shall postpone the date of the entry into force of the amendment or repeal for a period not exceeding [90][30] days, when the person to whom the advance ruling was issued has relied on it in good faith [and to his detriment].]]

[2.4.8 Each Party shall stipulate that in examining the regional value content of a good for which an advance ruling was issued, its [competent authority][customs administration] shall assess whether:

a) the exporter or producer is complies with the terms and conditions of the advance ruling;

b) the operations of the exporter or of the producer are consistent with the circumstances and essential facts on which that ruling is based;

c) the substantiating data and calculations used in applying the criterion or the method for calculating the value are correct in all essential respects.]

[2.4.9 Each Party shall stipulate that, when its [competent authority][customs administration] determines that any of the requirements established in the above [Article][Paragraph] have not been met, it [may][shall] amend or repeal the advance ruling, as circumstances warrant.]

[2.4.10 Each Party shall stipulate that, when its [competent authority][customs administration] determines that the advance ruling is based on incorrect information, the person to whom it has been issued shall not be sanctioned if that person shows that he/she acted with reasonable care and in good faith in representing the facts and circumstances that gave rise to the advance ruling.]

[2.4.11 Each Party shall stipulate that, when an advance ruling is issued to a person who has falsely represented or omitted substantial circumstances or facts on the basis of which the advance ruling was issued, or who has not complied with the terms and conditions thereof, the [competent authority][customs administration] issuing the advance ruling [may][shall] apply the measures, [as the circumstances warrant,] including sanctions, established in its legislation.]

[2.4.12 The Parties shall stipulate that the holder of an advance ruling may use it only while the facts and circumstances on the basis of which it was issued continue to exist. Otherwise, the holder of the ruling may present the necessary information so that the issuing authority may proceed pursuant to the provisions of paragraph 2.4.5.]

[2.4.13 No advance ruling shall be issued for a good that is subject to a verification of origin procedure or to any review or appeal proceeding in the territory of any of the Parties.]

[2.5.1 Each Party shall grant exporters or producers of another Party [substantially] the same rights of review and appeal of [origin decisions, determinations, rulings][origin determinations] and advance rulings provided for their importers.]

[2.5.2 These rights referred to include access to at least one administrative process of review, independent of the official or entity responsible for the ruling to determine origin or the advance ruling subject to review, and access to a judicial [or parajudicial review process of the decision made in the last instance of administrative review, pursuant to the legislation of each Party.]

[[The Parties] [The Administrative Commission] shall establish regulatory standards for interpretation, application, and administration of the [Chapters] on National Treatment and Market Access for Goods, of the [Chapter] on Rules of Origin, and of this [Chapter], which may be amended at any subsequent time.

Topics that shall be regulated through regulatory standards are:

a) format and instructions for completing the [certificate][certification] and [declaration] of origin;

b) deadline for providing the customs authority with a copy of the [certificate][certification] of origin ;

c) opportunity to correct import documents because of errors in the [certificate][certification] of origin;

d) Time period for which the importer must keep the [certificate][certification] of origin and any other documentation relating to the importation;

e) requirements that the importer must meet in order to apply, after importation, for a refund of customs duties due to prior failure to apply for preferential tariff treatment;

f) time period during which the exporter must keep records and documents related to the origin of the good and manner in which they are to be kept;

g) definition of imports exempted of the [certificate][certification] of origin requirement;

h) regulation of other means of verification of origin that may be agreed upon by the Parties (verification services);

i) requirements for validity of notifications of means of verification;

j) general or specific verification questionnaire;

k) deadline for responding to the questionnaire;

l) possibility for the exporter to request an extension of the deadline for responding to the verification questionnaire;

m) authorities and persons who must be notified of the verification visit;

n) communication between customs administrations to determine which authority should be notified of the verification visit;

o) contents of the notice of verification visit;

p) amendments to the above notice;

q) request to the importer for information on the origin of the goods;

r) deadline for consenting to the visit;

s) deadline for requesting postponement of the verification visit;

t) procedure for issuing advance rulings;

u) powers of the customs authority to reject on the grounds that it lacks a request for an advance ruling due to a lack of sufficient information];

v) [other topics as the Parties agree.]

[3.1.1 The [competent][customs] authority of the importing Party may not prevent customs clearance of the goods solely on the basis of doubt as to the authenticity of the [certificate][certification] of origin], or when the [certificate][certification] of origin is not presented, contains errors, or is incomplete or presumption of non-compliance with the rules established in this [Chapter]. In such situations, a bond for the value of the duties applicable to third countries may be required, pursuant to the domestic legislation of the Parties and the importing Party may decide to open an investigation, and shall notify the [competent][customs] authority of the exporting Party.]

[3.1.2 The [competent][customs] authorities of the Parties may carry out verification of origin procedures at random or when they have reasonable doubt as to the authenticity of the [certificate][certification] of origin or the truth of the information regarding the origin of the goods.]

3.1.3 [Where a claim for preference is properly made, it may not be denied without first commencing the process of verifying the claim.] [Once an investigation has been opened, the importing Party shall adopt any measures it considers necessary to guarantee fiscal interest, but under no circumstances shall it halt the process of importing the goods.] [Any dispute between the importer and the Customs Authorities of the importing Party will be settled in accordance with the legislation of the importing Party.]

[3.1.4. As part of an investigation to determine whether a good imported from the territory of another Party that has preferential tariff treatment qualifies as originating, the importing Party may, through its [competent][customs] authority, verify the origin of the good by the following means [only]:

a) written questionnaires and requests for information sent to [exporters or producers of the exporting Party] [or importers]; [or requiring the certifying authority of the exporting Party to furnish] the information needed to verify the authenticity of the [certificate][certification] of origin, the truth of the information contained therein, or the origin of the goods. Should the information furnished by the exporting Party be insufficient, the importing Party may request additional information.

b) verification visits to the facilities of the exporter or producer in the territory of the exporting Party in order to examine the productive processes, accounting records and the documents that demonstrate compliance with the rules of origin and to examine the facilities and materials or products used in the production of the goods and the materials;

c) [a request asking the [competent][customs] authority of the exporting Party to perform certain operations or procedures for the purpose of verifying the origin of the goods; ]

d) [other procedures agreed to by the Parties].]

[3.1.5 For the purposes of section a) of Article 3.1.4, the [competent][customs] authority of the importing Party shall indicate on the request the number and date of the [certificates][certification] of origin for which verification is sought, together with the purpose and scope of the request. For these purposes, [the certifying authority of the exporting Party shall furnish the required information, in the terms set forth in section a) of paragraph 3.1.4, within a period of no more than one hundred and twenty (120) days following the date on which the corresponding request was received.] [The exporter or producer who receives a questionnaire under paragraph 3.1.4 section a) shall respond to and return said questionnaire within a period of … [30] days from the date it was [received][notified]. During this interval, the exporter or producer may apply [in writing], only once, to the importing Party requesting an extension, which can not exceed ….[30] days.]]

[In the event that the information requested under section a) is not delivered in the time stipulated, or if the reply does not provide sufficient information to determine the authenticity or truth of the [certificate][certification] of origin or the origin of the goods, the [competent][customs] authority of the importing Party may deny preferential tariff treatment for the goods covered by the certificates subject to the verification procedure by means of a written resolution that includes the factual and legal grounds on which the resolution is based.]

3.1.6 [Where the [competent][customs] authorities of the importing Party wish verification of origin to be carried out, they shall communicate with the [competent][customs] authority in the exporting Party, setting out the substance of the enquiry. The [competent][customs] authority in the exporting Party shall respond to the enquiry within a period of ... days, providing the information requested as fully as possible. Where the [competent][customs] authority in the exporting Party considers it appropriate, it may invite the [competent][customs] authorities of the importing Party to participate in the investigation.]

[Before making a verification visit in accordance with the provisions of paragraph 3.1.4 b), the importing Party shall be required to notify in writing [at least 30 days in advance], through its [competent] [customs] authority, its intention to make the visit.] [The notification shall be sent to the exporter or producer who is to be visited, the [competent] [customs] authority of the Party in whose territory the visit will take place and, if the latter so requests, the embassy of this Party in the territory of the importing Party. The [competent] [customs] authority of the importing Party shall obtain the written consent of the exporter or producer to be visited.]

[3.1.7. The verification procedure set forth in section c) of the article 3.1.4. shall only be used in the case of commercial operations worth US$50,000 (fifty thousand United States dollars) or more and in the event that the origin of the goods cannot be with certainty determined using the method provided for in section a).]

[In the event that the information requested under section c), is not delivered in the deadline provided for or if the reply does not contain sufficient information to determine the origin of the goods, the [competent][customs] authority of the importing Party may deny preferential tariff treatment for the goods covered by the certificates subject to the verification procedure by means of a written resolution that includes the factual and legal grounds on which the resolution is based.]

[3.1.8 The notification referred to in paragraph 3.1.6 shall contain:

a) an identification of the [competent][customs] authority making the notification;

b) the name of the exporter or producer to be visited;

c) the date and place of the proposed verification visit;

d) the purpose and scope of the proposed verification visit, with specific mention of the goods that are subject to verification;

e) [identification][name, personal data] and titles of the officials who will make the verification visit; and

f) the legal grounds for the verification visit.]

[Any modification to the information referred to in sections a), c), and e) shall be notified in writing to the exporter or producer and to the [competent][customs] authority of the exporting Party prior to the verification visit. Any modification to the information referred to in sections b), d), and f) shall be notified pursuant to the terms of article 3.1.6.]

[3.1.9 If during the [30][45][days following receipt of the notification of the proposed verification visit, the exporter or producer does not give his written consent for said visit, the importing Party may deny preferential tariff treatment to the good(s) that is (are) the subject of the verification visit.]

[3.1.10 Each Party shall stipulate that, when the [exporter or producer][the customs authority] receives a notification of a verification visit, it may request, within [15] days after the date the notification is received, a one-time postponement of the proposed verification visit, for a period not to exceed [60] days as of the date the notification is received, or for a longer period agreed to by the Parties. The [competent][customs] authority of the importing Party and of the exporting Party may be notified of the postponement of the visit. The importing Party may not deny preferential tariff treatment based solely on the request to postpone the verification visit.]

[3.1.11 Each Party shall allow the exporter or producer whose goods are the object of a verification visit, to designate up to two observers who will be present during the visit, provided said observers intervene solely in that capacity. If the exporter or producer does not designate observers, this shall not result in the postponement of the visit.]

[3.1.12 When conducting a visit of verification of origin, [each Party] the [competent][customs] authority shall verify compliance with the requirements of the [Chapter] on Rules of Origin, [through its [competent][customs] authority], in accordance with Generally Accepted Accounting Principles and Generally Accepted Auditing Standards which apply in the territory of the exporting or producer Party from which the good was exported or produced.]

[3.1.13 After concluding the visit, the [competent][customs] authority shall provide the exporter or producer with a written ruling in which it is determined whether or not the good qualifies as originating; said ruling shall also include the findings of fact and the legal grounds of the determination. This ruling shall be presented in ….days as of the initiation of the process of verification of origin, it may be extended for a period of ….days with previous notification to the exporter or producer. A ruling on the determination of origin issued outside the aforementioned period or its extension shall have no effect whatsoever.]

[3.1.14 If the ruling of origin determination is not satisfactory, the exporting Party may appeal to the dispute settlement system of the Agreement.]

[3.1.15 If one of the Parties believes that another Party is importing from third Parties in which there are doubts regarding compliance with the present Rules of Origin, it may request, through the entity responsible for the administration of the Agreement, that consultations be held to ascertain the real production conditions of such goods, so that the Party requesting the consultation may assess the advisability of requesting that an investigation into the originating nature of the good(s) be opened .]

[The Party consulted shall provide appropriate consideration and respond within ... days, at the most. The consultations shall be carried out in a place agreed to by the Parties and both their proceedings and their conclusions shall be reported to the entity responsible for the administration of the Agreement. The Administrative Commission shall keep an updated record of the rulings adopted by the Parties on the determination of origin.]

[3.1.16 When the verification conducted by a Party indicates that an exporter or producer has certified more than once and in a false or unfounded manner, that a good qualifies as originating, the importing Party may suspend preferential tariff treatment for identical goods that said person exports or produces until the person proves that the good complies with the stipulations of the [Chapter] on Rules of Origin]

[3.1.17 Each Party shall stipulate that when the [competent][customs] authority determines by means of a resolution that a good imported into its territory does not qualify as originating in accordance with the tariff classification, or with the value applied by the Party to one or more of the materials used in the production of the good, and that this differs from the tariff classification or value applied to the materials by the exporting Party, the ruling of the importing Party shall not take effect until both the importer of the good and the exporter or producer who filled out and signed the [certificate][certification] of origin or the declaration of origin covering that good have been notified in writing.]

[3.1.18 The Party shall not apply the ruling issued in accordance with the preceding paragraph to an importation made prior to the date on which the ruling enters into force, provided that:

a) the [competent][customs] authority from the exporting Party has issued a ruling on the tariff classification or value of the materials, [or has given consistent treatment to the entry of the materials under the tariff classification or value at issue,] on which one could rely in accordance with its laws and regulations;

b) the rulings described in section a) are issued prior to the notification of the initiation of the verification of origin.]

[3.1.19 If a Party denies preferential tariff treatment to a good pursuant to a determination made under paragraph 3.1.17, it shall postpone the effective date of the denial for a period not exceeding [90][30] days after the date of the determination or notification that the issue is being revised, where the importer of the good, or the person who completed and signed the [certificate][certification] of origin or the declaration of origin for the good, demonstrates that he has relied in good faith to its detriment on the tariff classification or value applied to such materials by the customs administration of the Party from whose territory the good was exported.] [Likewise, a Party shall not apply such a determination of origin arising from a verification to an importation made before the effective date of the determination, provided that the importer has demonstrated that prior to making the claims at issue it has relied upon either:

a) [a ruling on the tariff classification or on the eligibility for tariff preference of such materials by the customs administration of the Party into whose territory the material was imported;]

b) [the consistent treatment of the material in question in terms of classification or valuation, as demonstrated by importations of the material into that territory.]]

[3.1.20 When a [certificate][certification] of origin is not presented, the [competent][customs] authorities of the importing Party shall provide a 15 calendar-day period, as of the date of entry for consumption or customs release of the good, for due presentation of the document. After that period, the bond will be collected or the corresponding levies charged.]

[3.1.21 In the event bonds are set, they shall have an initial maximum duration of 40 calendar days as of the date of entry for consumption or customs release of the good, which may be extended for another 40 calendar days if, during the first bond period, compliance with the provisions of this [Chapter] is not established.]

[3.1.22 [Competent][Customs] authorities shall notify the exporting Party and the agency responsible for administering the Agreement that a bond has been set within 3 working days of the adoption of the measure, and shall include antecedents, developments or the justifications for same.]

[3.1.23 It shall be incumbent on the exporting Party to clarify the situation to the [competent][customs] authorities of the importing Party and, if necessary, to furnish proof demonstrating compliance with the rules of origin. If no clarification or demonstration is made regarding the measure adopted within thirty (30) calendar days of the adoption of the measure, or if such action has not led to a solution of the problem, any of the Parties involved may request the intervention of the agency responsible for administering the Agreement, providing it with all the information at its disposal.

The agency responsible for administering the Agreement shall issue its ruling on compliance or non-compliance with the provisions of this [Chapter] within 30 calendar days of receiving the request.

If it is established that the [certificate][certification] of origin is not authentic, or if the good does not qualify as originating, the importing Party may collect the bond.]

[3.2.1 Each Party shall maintain, in accordance with its laws and regulations, the confidentiality of business information collected pursuant to this [Chapter] the release of which could prejudice the competitive position of the persons providing the information.

Examples of such information may include but are not limited to:

a) the terms of sale or contracts relating to imports, including information regarding transaction prices;

b) internal costs and prices, including manufacturing costs;

c) manufacturing processes; and

d) profit margins.]

3.2.2 Confidential information may only be made known to the authorities responsible for the administration and application of the rulings to determine origin [and of customs or fiscal matters, as applicable].

[3.2.3 Nothing in these articles shall preclude the parties from sharing information between governments that would enhance the enforcement of the obligations of this [Chapter]. 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.]

[3.3.1 The Parties are to cooperate and consult as deemed necessary for the effective and uniform application and interpretation of administrative or operational provisions on matters relating to this [Chapter], and may have common understandings related to the interpretation and application of the provisions of this [Chapter]. The consulted Party shall give prompt and full consideration to any inquiries received.]

[3.3.2 Creation of an Assistance Fund for the Verification of Origin for small economies. The funding shall be obtained by ….% of unpaid import tariffs by the more developed countries to the smaller economies.]

[3.3.3 To the extent feasible, each Party shall notify the others of the following measures, rulings, or determinations [, including those in the process of being applied]:

a) a determination of origin [ruling] issued as the result of a verification of origin visit made pursuant to Paragraph 3.1.4 b), once the review and challenge rights referred to in Article 2.5 have been exhausted;

b) a determination of origin ruling that a Party considers contrary to a ruling issued by the [competent][customs] authority of another Party regarding tariff classification or the value of a good, or of materials used in the production of a good, or the reasonable allocation of costs when calculating the net cost of a good for which a determination of origin has been made;

c) a measure that establishes or significantly modifies an administrative policy that could affect future determination of origin rulings; and

d) an advance ruling or its amendment, pursuant to Paragraph 2.4.5.

Each Party shall ensure that its laws and regulations implementing this [Chapter] are promptly published [and made available on the Internet]. Each Party shall ensure that advance rulings, amendments of advance rulings, or repeals of advance rulings interpreting or implementing this [Chapter] are [promptly] published [and made available on the Internet]. When such published rulings or modifications thereto are drafted such as to protect confidential business information, Parties shall make the complete determination available to [competent][customs] authorities from the other Parties, upon request.]

[3.3.4 The [Parties ][Customs authorities] shall cooperate:

a) in the enforcement of their respective customs-related laws or regulations for implementing this Agreement, and any mutual assistance agreement or other customs-related agreement to which they are party;

b) for purposes of facilitating commerce between their territories, in such customs­related matters as the collection and exchange of statistics on 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) in the exchange of customs-related regulations;

d) in the verification of origin of a good, to which end the customs authority of the importing Party may request the customs authority of the other Party to conduct in its territory certain investigations for that purpose, and forward the relevant report to the customs authority of the importing Party; and

e) in the joint organization of training programs on customs-related topics, to include training of officials and users who participate directly in customs procedures.][Likewise, each Party, at the request of any other Party, may provide technical advice, information and assistance, with a view to training officials so that they acquire technical expertise and are able to implement technologies that promote improved compliance and control of the certification of origin process.]

4. PENALTIES

[4.1 Each Party shall establish or maintain criminal, civil, or administrative penalties for violations of its laws and regulations as related to the provisions of this [Chapter].] [The Parties shall maintain legislation providing for penalties against persons who, furnish or cause to be furnished any document which is untrue in a material particular in support of a claim for preferential treatment under this Agreement.]

[4.2 Each Party shall stipulate that a false [certificate][certification] or [declaration] of origin, to the effect that a good to be exported to the territory of the other Party qualifies as originating, shall have the same legal consequences, with any changes required by the circumstances, as those that would be applied to its own importer making false declarations or representations in contravention of its customs regulations and laws. It may also apply such measures as the circumstances warrant when the exporter or producer fails to meet any of the requirements in this [Chapter].]

[4.3 When it has been established that a [certificate][certification] of origin is not authentic or that the good does not qualify as originating, the exporting and/or importing Parties shall apply the appropriate measures and/or sanctions under their national legislation.]

[4.4 Without prejudice to the above, [the exporting Party shall suspend the granting of [certificate][certification] of origin] to the final producer or exporter for a period of [6] months and in the event of a recurrence, said suspension shall be for a period of [18] months.]

[The entities authorized by each Party to issue certificates of origin shall share responsibility with the producer or exporter, in regard to the authenticity of the information given in the declaration of origin of the goods.]

[The competent government authorities of each Party shall disqualify officials of non-governmental certifying entities who have issued [certificates][certification] of origin in an improper manner. If, within a period of one year, any corresponding non-governmental certifying entity repeats such improprieties, it shall be suspended permanently from issuing [certificates][certifications] of origin. When governmental certifying entities are involved, the Parties shall adopt measures and/or sanctions provided by their domestic legislation.]

[6.1. For the purposes of this [Chapter], the following terms shall have the meanings indicated:

customs authority: the authority that, under the domestic law of each Party, is responsible for the administration of customs laws and regulations;

certifying authority: the [government] authority that, under the domestic law of each Party, is responsible for issuing, verifying, and controlling certificates of origin;

identical goods: goods that are the same in all respects, including physical characteristics, quality, and commercial reputation. Minor differences in appearance shall not prevent goods that in all other ways fit this definition from being considered identical;

CIF: inclusive of cost, insurance, and freight;

exporter: an exporter located in the territory of a Party from which the good is exported who, pursuant to this [Chapter], is obliged to maintain, in the territory of that Party, the records referred to in Article 1.12.1 a);

importer: an importer located in the territory of a Party into which the good is imported who, pursuant to this [Chapter], is obliged to maintain, in the territory of that Party, the records referred to in Article 1.12.1 b);

producer: in addition to the stipulations of the [Chapter] on “Rules of Origin”, the person who is obliged to maintain, in the territory of that Party, the records referred to in Article 1.12.1 a);

ruling to determine origin: a ruling issued as a result of a verification of origin that establishes whether a good qualifies as originating, in accordance with the RO [Chapter] “Rules of Origin”;

preferential tariff treatment: the application of the duty rate applicable to an originating good, in accordance with the Tariff Elimination Program.]

6.2. Except for terms defined in this Article, the definitions set forth in Article … [Definitions] and the provisions of Article …. [Enforcement Instruments] of the [Chapter] on “Rules of Origin” are incorporated into this [Chapter].

The Parties establish the following common form for the “certificate of origin”:

The Parties establish that the “certification of origin” may contain the following common set of data elements: ]

The Parties establish the following common form for the “declaration of origin”:]

 

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