Title:Customs Procedures -- Chapter Five
Author: White House
Document-Date: 29 Sept 1993
Content-Type: text/plain; CHARSET=US-ASCII
Content-Length:46776                                     Chapter Five  
 
                                  Customs Procedures  
 
 
                          Section A - Certification of Origin 
 
 
            Article 501:   Certificate of Origin 
 
            1.   The Parties shall establish by January 1, 1994 a 
            Certificate of Origin for the purpose of certifying that a good 
            being exported from the territory of a Party into the territory 
            of another Party qualifies as an originating good, and may 
            thereafter revise the Certificate by agreement.  
 
            2.   Each Party may require that a Certificate of Origin for a 
            good imported into its territory be completed in a language 
            required under its law. 
 
            3.   Each Party shall: 
 
                 (a)  require an exporter in its territory to complete and 
                      sign a Certificate of Origin for any exportation of a 
                      good for which an importer may claim preferential 
                      tariff treatment on importation of the good into the 
                      territory of another Party; and 
 
                 (b)  provide that where an exporter in its territory is 
                      not the producer of the good, the exporter may 
                      complete and sign a Certificate on the basis of 
 
                      (i)  its knowledge of whether the good qualifies as 
                           an originating good,  
 
                      (ii) its reasonable reliance on the producer's 
                           written representation that the good qualifies 
                           as an originating good, or 
 
                      (iii)     a completed and signed Certificate for the 
                                good voluntarily provided to the exporter 
                                by the producer. 
 
            4.   Nothing in paragraph 3 shall be construed to require a 
            producer to provide a Certificate of Origin to an exporter. 
 
            5.   Each Party shall provide that a Certificate of Origin that 
            has been completed and signed by an exporter or a producer in 
            the territory of another Party that is applicable to: 
 
 
 
 
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                 (a)  a single importation of a good into the Party's 
                      territory, or 
 
                 (b)  multiple importations of identical goods into the 
                      Party's territory that occur within a specified 
                      period, not exceeding 12 months, set out therein by 
                      the exporter or producer, 
 
            shall be accepted by its customs administration for four years 
            after the date on which the Certificate was signed. 
 
 
            Article 502:   Obligations Regarding Importations 
 
            1.   Except as otherwise provided in this Chapter, each Party 
            shall require an importer in its territory that claims 
            preferential tariff treatment for a good imported into its 
            territory from the territory of another Party to: 
 
                 (a)  make a written declaration, based on a valid 
                      Certificate of Origin, that the good qualifies as an 
                      originating good; 
 
                 (b)  have the Certificate in its possession at the time 
                      the declaration is made; 
 
                 (c)  provide, on the request of that Party's customs 
                      administration, a copy of the Certificate; and 
 
                 (d)  promptly make a corrected declaration and pay any 
                      duties owing where the importer has reason to believe 
                      that a Certificate on which a declaration was based 
                      contains information that is not correct. 
 
            2.   Each Party shall provide that, where an importer in its 
            territory claims preferential tariff treatment for a good 
            imported into its territory from the territory of another 
            Party: 
 
                 (a)  the Party may deny preferential tariff treatment to 
                      the good if the importer fails to comply with any 
                      requirement under this Chapter; and 
 
                 (b)  the importer shall not be subject to penalties for 
                      the making of an incorrect declaration, if it 
                      voluntarily makes a corrected declaration pursuant to 
                      paragraph 1(d). 
 
            3.   Each Party shall provide that, where a good would have 
            qualified as an originating good when it was imported into the 
            territory of that Party but no claim for preferential tariff 
 
 
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            treatment was made at that time, the importer of the good may, 
            no later than one year after the date on which the good was 
            imported, apply for a refund of any excess duties paid as the 
            result of the good not having been accorded preferential tariff 
            treatment, on presentation of: 
 
                 (a)  a written declaration that the good qualified as an 
                      originating good at the time of importation;  
 
                 (b)  a copy of the Certificate of Origin; and  
 
                 (c)  such other documentation relating to the importation 
                      of the good as that Party may require. 
 
 
            Article 503:   Exceptions  
 
                 Each Party shall provide that a Certificate of Origin 
            shall not be required for: 
 
                 (a)  a commercial importation of a good whose value does 
                      not exceed US$1,000 or its equivalent amount in the 
                      Party's currency, or such higher amount as it may 
                      establish, except that it may require that the 
                      invoice accompanying the importation include a 
                      statement certifying that the good qualifies as an 
                      originating good,  
 
                 (b)  a non-commercial importation of a good whose value 
                      does not exceed US$1,000 or its equivalent amount in 
                      the Party's currency, or such higher amount as it may 
                      establish, or 
 
                 (c)  an importation of a good for which the Party into 
                      whose territory the good is imported has waived the 
                      requirement for a Certificate of Origin, 
 
            provided that the importation does not form part of a series of 
            importations that may reasonably be considered to have been 
            undertaken or arranged for the purpose of avoiding the 
            certification requirements of Articles 501 and 502. 
 
 
            Article 504:   Obligations Regarding Exportations  
 
            1.   Each Party shall provide that: 
 
                 (a)  an exporter in its territory, or a producer in its 
                      territory that has provided a copy of a Certificate 
                      of Origin to that exporter pursuant to Article 
                      501(3)(b)(iii), shall provide a copy of the 
 
 
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                      Certificate to its customs administration on request; 
                      and 
 
                 (b)  an exporter or a producer in its territory that has 
                      completed and signed a Certificate of Origin, and 
                      that has reason to believe that the Certificate 
                      contains information that is not correct, shall 
                      promptly notify in writing all persons to whom the 
                      Certificate was given by the exporter or producer of 
                      any change that could affect the accuracy or validity 
                      of the Certificate. 
 
            2.   Each Party: 
 
                 (a)  shall provide that a false certification by an 
                      exporter or a producer in its territory that a good 
                      to be exported to the territory of another Party 
                      qualifies as an originating good shall have the same 
                      legal consequences, with appropriate modifications, 
                      as would apply to an importer in its territory for a 
                      contravention of its customs laws and regulations 
                      regarding the making of a false statement or 
                      representation; and 
 
                 (b)  may apply such measures as the circumstances may 
                      warrant where an exporter or a producer in its 
                      territory fails to comply with any requirement of 
                      this Chapter. 
 
            3.   No Party may impose penalties on an exporter or a producer 
            in its territory that voluntarily provides written notification 
            pursuant to paragraph (1)(b) with respect to the making of an 
            incorrect certification. 
 
 
                       Section B - Administration and Enforcement 
 
 
            Article 505:   Records 
 
                 Each Party shall provide that: 
 
                 (a)  an exporter or a producer in its territory that 
                      completes and signs a Certificate of Origin shall 
                      maintain in its territory, for five years after the 
                      date on which the Certificate was signed or for such 
                      longer period as the Party may specify, all records 
                      relating to the origin of a good for which 
                      preferential tariff treatment was claimed in the 
                      territory of another Party, including records 
                      associated with 
 
 
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                      (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; and 
 
                 (b)  an importer claiming preferential tariff treatment 
                      for a good imported into the Party's territory shall 
                      maintain in that territory, for five years after the 
                      date of importation of the good or for such longer 
                      period as the Party may specify, such documentation, 
                      including a copy of the Certificate, as the Party may 
                      require relating to the importation of the good. 
 
 
            Article 506:   Origin Verifications 
 
            1.   For purposes of determining whether a good imported into 
            its territory from the territory of another Party qualifies as 
            an originating good, a Party may, through its customs 
            administration, conduct a verification solely by means of: 
 
                 (a)  written questionnaires to an exporter or a producer 
                      in the territory of another Party;  
 
                 (b)  visits to the premises of an exporter or a producer 
                      in the territory of another Party to review the 
                      records referred to in Article 505(a) and observe the 
                      facilities used in the production of the good; or 
 
                 (c)  such other procedure as the Parties may agree. 
 
            2.   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 
 
                      (i)  the exporter or producer whose premises are to 
                           be visited, 
 
                      (ii) the customs administration of the Party in whose 
                           territory the visit is to occur, and 
 
 
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                      (iii)     if requested by the Party in whose 
                                territory the visit is to occur, the 
                                embassy of that 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. 
 
            3.   The notification referred to in paragraph 2 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. 
              
            4.   Where an exporter or a producer has not given its written 
            consent to a proposed verification visit within 30 days of 
            receipt of notification pursuant to paragraph 2, the notifying 
            Party may deny preferential tariff treatment to the good that 
            would have been the subject of the visit. 
 
            5.   Each Party shall provide that, where its customs 
            administration receives notification pursuant to paragraph 2, 
            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. 
 
            6.   A Party shall not deny preferential tariff treatment to a 
            good based solely on the postponement of a verification visit 
            pursuant to paragraph 5. 
 
            7.   Each Party shall permit an exporter or a producer whose 
            good is the subject of a verification visit by another Party to 
            designate two observers to be present during the visit, 
            provided that: 
 
 
 
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                 (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. 
 
            8.   Each Party shall, through its customs administration, 
            conduct a verification of a regional value-content requirement 
            in accordance with the Generally Accepted Accounting Principles 
            applied in the territory of the Party from which the good was 
            exported. 
 
            9.   The Party conducting a verification shall 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. 
 
            10.  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 Four (Rules of Origin). 
 
            11.  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 Party 
            from whose territory the good was exported, 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. 
 
            12.  A Party shall not apply a determination made under 
            paragraph 11 to an importation made before the effective date 
            of the determination where: 
 
                 (a)  the customs administration of the Party from whose 
                      territory the good was exported has issued an advance 
                      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 
 
 
 
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                 (b)  the advance ruling or consistent treatment was given 
                      prior to notification of the determination. 
 
            13.  If a Party denies preferential tariff treatment to a good 
            pursuant to a determination made under paragraph 11, 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 Party from whose 
            territory the good was exported. 
 
 
            Article 507:   Confidentiality 
 
            1.   Each Party shall maintain, in accordance with its law, the 
            confidentiality of confidential business information collected 
            pursuant to this Chapter and shall protect that information 
            from disclosure that could prejudice the competitive position 
            of the persons 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 508:   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 Articles 502(2), 504(3) or 506(6) shall be 
            construed to prevent a Party from applying such measures as the 
            circumstances may warrant. 
 
 
                              Section C - Advance Rulings 
 
 
            Articles 509:  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 another Party, on the basis of the facts and 
            circumstances presented by such importer, exporter or producer 
            of the good, concerning: 
 
 
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                 (a)  whether materials imported from a non-Party used in 
                      the production of a good undergo an applicable change 
                      in tariff classification set out in Annex 401 as a 
                      result of production occurring entirely in the 
                      territory of one or more of the Parties; 
 
                 (b)  whether a good satisfies a regional value-content 
                      requirement under either the transaction value method 
                      or the net cost method set out in Chapter Four; 
 
                 (c)  for the purpose of determining whether a good 
                      satisfies a regional value-content requirement under 
                      Chapter Four, the appropriate basis or method for 
                      value to be applied by an exporter or a producer in 
                      the territory of another Party, in accordance with 
                      the principles of the Customs Valuation Code, for 
                      calculating the transaction value of the good or of 
                      the materials used in the production of the good; 
 
                 (d)  for the purpose of determining whether a good 
                      satisfies a regional value-content requirement under 
                      Chapter Four, the appropriate basis or method for 
                      reasonably allocating costs, in accordance with the 
                      allocation methods set out in the Uniform 
                      Regulations, for calculating the net cost of the good 
                      or the value of an intermediate material; 
 
                 (e)  whether a good qualifies as an originating good under 
                      Chapter Four; 
 
                 (f)  whether a good that re-enters its territory after the 
                      good has been exported from its territory to the 
                      territory of another Party for repair or alteration 
                      qualifies for duty-free treatment in accordance with 
                      Article 307 (Goods Re-Entered after Repair or 
                      Alteration);  
 
                 (g)  whether the proposed or actual marking of a good 
                      satisfies country of origin marking requirements 
                      under Article 311 (Country of Origin Marking);  
 
                 (h)  whether an originating good qualifies as a good of a 
                      Party under Annex 300-B (Textile and Apparel Goods), 
                      Annex 302.2 (Tariff Elimination) or Chapter Seven 
                      (Agriculture and Sanitary and Phytosanitary 
                      Measures); 
 
                 (i)  whether a good is a qualifying good under Chapter 
                      Seven; or 
 
                 (j)  such other matters as the Parties may agree. 
 
 
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            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 the periods specified 
                      in the Uniform Regulations; and 
 
                 (c)  shall, where the advance ruling is unfavorable to the 
                      person requesting it, provide to that person 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 Four 
            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 Four, 
 
                      (iv) in the application of the rules for determining 
                           whether a good qualifies as a good of a Party 
                           under Annex 300-B, 302.2 or Chapter Seven, 
 
 
 
 
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                      (v)  in the application of the rules for determining 
                           whether a good is a qualifying good under 
                           Chapter Seven, or 
 
                      (vi) 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 another Party for 
                           repair or alteration qualifies for duty-free 
                           treatment under Article 307; 
 
                 (b)  if the ruling is not in accordance with an 
                      interpretation agreed by the Parties regarding 
                      Chapter Three (National Treatment and Market Access 
                      for Goods) or Chapter Four; 
 
                 (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 Three, 
                      Chapter Four, this Chapter, Chapter Seven, the 
                      Marking Rules or the 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 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(c), (d) or (f), it shall evaluate whether: 
 
                 (a)  the exporter or producer has complied with the terms 
                      and conditions of the advance ruling; 
 
 
 
 
 
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                 (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 the 
            circumstances may warrant. 
 
 
               Section D - Review and Appeal of Origin Determinations and 
            Advance Rulings 
 
 
            Article 510:   Review and Appeal 
 
            1.   Each Party shall grant substantially the same rights of 
            review and appeal of determinations of origin and advance 
            rulings 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;  
 
                 (b)  whose good has been the subject of a country of 
                      origin marking determination pursuant to Article 311 
                      (Country of Origin Marking); or 
 
                 (c)  who has received an advance ruling pursuant to 
                      Article 509(1). 
 
 
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            2.   Further to Articles 1804 (Administrative Proceedings) and 
            1805 (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 E - Uniform Regulations 
 
 
            Article 511:   Uniform Regulations 
 
            1.   The Parties shall establish, and implement through their 
            respective laws or regulations by January 1, 1994, Uniform 
            Regulations regarding the interpretation, application and 
            administration of Chapter Four, 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 F - Cooperation 
 
 
            Article 512:   Cooperation 
 
            1.   Each Party shall notify the other Parties 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 506(1); 
 
                 (b)  a determination of origin that the Party is aware is 
                      contrary to 
 
                      (i)  a ruling issued by the customs administration of 
                           another Party with respect to the tariff 
                           classification or value of a good, or of 
                           materials used in the production of a good, or 
 
 
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                           the reasonable allocation of costs where 
                           calculating the net cost of a good, that is the 
                           subject of a determination of origin, or 
 
                      (ii) consistent treatment given by the customs 
                           administration of another 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, country of origin marking 
                      requirements or determinations as to whether a good 
                      qualifies as a good of a Party under the Marking 
                      Rules; and 
 
                 (d)  an advance ruling, or a ruling modifying or revoking 
                      an advance ruling, pursuant to Article 509. 
 
            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 
                      agreements or other customs-related agreement to 
                      which they are party;  
 
                 (b)  for purposes of the detection and prevention of 
                      unlawful transshipments of textile and apparel goods 
                      of a non-Party, in the enforcement of prohibitions or 
                      quantitative restrictions, including the verification 
                      by a Party, in accordance with the procedures set out 
                      in this Chapter, of the capacity for production of 
                      goods by an exporter or a producer in the territory 
                      of another Party, provided that the customs 
                      administration of the Party proposing to conduct the 
                      verification, prior to conducting the verification 
 
                      (i)  obtains the consent of the Party in whose 
                           territory the verification is to occur, and 
 
                      (ii) provides notification to the exporter or 
                           producer whose premises are to be visited, 
 
                      except that procedures for notifying the exporter or 
                      producer whose premises are to be visited shall be in 
                      accordance with such other procedures as the Parties 
                      may agree; 
 
 
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                 (c)  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; and 
 
                 (d)  to the extent practicable, in the storage and 
                      transmission of customs-related documentation. 
 
 
            Article 513:   Working Group and Customs Subgroup 
 
            1.   The Parties hereby establish a Working Group on Rules of 
            Origin, comprising representatives of each Party, to ensure: 
 
                 (a)  the effective implementation and administration of 
                      Articles 303 (Restriction on Drawback and Duty 
                      Deferral Programs), 308 (Most-Favored-Nation Rates of 
                      Duty on Certain Goods) and 311, Chapter Four, this 
                      Chapter, the Marking Rules and the Uniform 
                      Regulations; and 
 
                 (b)  the effective administration of the customs-related 
                      aspects of Chapter Three. 
 
            2.   The Working Group shall meet at least four times each year 
            and on the request of any Party. 
 
            3.   The Working Group shall: 
 
                 (a)  monitor the implementation and administration by the 
                      customs administrations of the Parties of Articles 
                      303, 308 and 311, Chapter Four, this Chapter, the 
                      Marking Rules and the Uniform Regulations to ensure 
                      their uniform interpretation; 
 
                 (b)  endeavor to agree, on the request of any Party, on 
                      any proposed modification of or addition to Article 
                      303, 308 or 311, Chapter Four, this Chapter, the 
                      Marking Rules or the Uniform Regulations;  
 
                 (c)  notify the Commission of any agreed modification of 
                      or addition to the Uniform Regulations;  
 
                 (d)  propose to the Commission any modification of or 
                      addition to Article 303, 308 or 311, Chapter Four, 
                      this Chapter, the Marking Rules, the Uniform 
                      Regulations or any other provision of this Agreement 
 
 
                                          5-15  
 
 
 
 
 
 
  
 
 
 
 
 
                      as may be required to conform with any change to the 
                      Harmonized System; and 
 
                 (e)  consider any other matter referred to it by a Party 
                      or by the Customs Subgroup established under 
                      paragraph 6. 
 
            4.   Each Party shall, to the greatest extent practicable, take 
            all necessary measures to implement any modification of or 
            addition to this Agreement within 180 days of the date on which 
            the Commission agrees on the modification or addition. 
 
            5.   If the Working Group fails to resolve a matter referred to 
            it pursuant to paragraph 3(e) within 30 days of such referral, 
            any Party may request a meeting of the Commission under Article 
            2007 (Commission - Good Offices, Conciliation and Mediation). 
 
            6.   The Working Group shall establish, and monitor the work 
            of, a Customs Subgroup, comprising representatives of each 
            Party.  The Subgroup shall meet at least four times each year 
            and on the request of any Party and shall: 
 
                 (a)  endeavor to agree on  
 
                      (i)  the uniform interpretation, application and 
                           administration of Articles 303, 308 and 311, 
                           Chapter Four, this Chapter, the Marking Rules 
                           and the 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) revisions to the Certificate of Origin,  
 
                      (v)  any other matter referred to it by a Party, the 
                           Working Group or the Committee on Trade in Goods 
                           established under Article 316, and 
 
                      (vi) any other customs-related matter arising under 
                           this Agreement; 
 
                 (b)  consider 
 
                      (i)  the harmonization of customs-related automation 
                           requirements and documentation, and 
 
 
 
 
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                      (ii) proposed customs-related administrative and 
                           operational changes that may affect the flow of 
                           trade between the Parties' territories; 
 
                 (c)  report periodically to the Working Group and notify 
                      it of any agreement reached under this paragraph; and 
 
 
                 (d)  refer to the Working Group 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). 
 
            7.   Nothing in this Chapter shall be construed to prevent a 
            Party from issuing a determination of origin or an advance 
            ruling relating to a matter under consideration by the Working 
            Group or the Customs Subgroup or from taking such other action 
            as it considers necessary, pending a resolution of the matter 
            under this Agreement. 
 
 
            Article 514:   Definitions 
 
            For purposes of this Chapter: 
 
            commercial importation means the importation of a good into the 
            territory of any 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 Four; 
 
 
            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 Four; 
 
            importer in the territory of a Party means an importer located 
            in the territory of a Party and an importer required under this 
 
 
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            Chapter to maintain records in the territory of that Party 
            regarding importations of a good; 
 
            intermediate material means "intermediate material" as defined 
            in Article 415; 
 
            Marking Rules means "Marking Rules" established under Annex 
            311; 
 
            material means "material" as defined in Article 415; 
 
            net cost of a good means "net cost of a good" as defined in 
            Article 415; 
 
            preferential tariff treatment means the duty rate applicable to 
            an originating good;  
 
            producer means "producer" as defined in Article 415; 
 
            production  means "production" as defined in Article 415; 
 
            transaction value means "transaction value" as defined in 
            Article 415; 
 
            Uniform Regulations means "Uniform Regulations" established 
            under Article 511;  
 
            used means "used" as defined in Article 415; and 
 
            value means value of a good or material for purposes of 
            calculating customs duties or for purposes of applying Chapter 
            Four.  
              
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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