Common use of Denial of Preferential Tariff Treatment Clause in Contracts

Denial of Preferential Tariff Treatment. 1. The importing Party may deny preferential tariff treatment to a good for which an importer in its territory claims preferential tariff treatment where the good does not meet the requirements of Chapter 3 or where the importer fails to comply with any of the relevant requirements of Chapter 3. 2. Where the denial of preferential treatment is due to the signature that appears in the Certificate of Origin, the Importing Party may accept a clarification letter from the exporting Party confirming the authenticity of Certificate of Origin. Such clarification letter may be issued directly from the exporting Party to the importing Party or through the exporter of the good. 3. Export of consignments accompanied by an authentic Certificate of Origin will not be subjected to any detention or delays by the Customs Authorities of the importing country. 4. In case of reasonable doubt about the authenticity of a Certificate of Origin, the Customs Authority of the importing country may seek a clarification from the certifying agency of the exporting country which will furnish the same within a period of 30 days. Meanwhile, the subject consignment will be allowed entry into the importing country on a provisional basis against a bond or a guarantee i.e. a legally binding undertaking as may be required. After examining the information so provided by the certifying authority, the Customs Authority in the importing country would take appropriate action to finalise the provisional assessment. 5. Where the clarification carried on in paragraph 4 is not conclusive, the importing Party may, upon informing the exporting Party and with the knowledge of the importer concerned and with the consent of the exporter or manufacturer concerned, visit the exporter or manufacturer concerned for the purpose of verifying the preference claim. If no consent is given by the exporter or manufacturer concerned within a period of 45 days, the importing party may disallow the tariff preference for the particular Certificate of Origin.

Denial of Preferential Tariff Treatment. 1. Where the goods do not meet the requirements of this Chapter or where the importer or exporter fails to comply with the requirements of this Chapter, the customs authorities of the importing Party may deny preferential tariff treatment and recover unpaid customs duties in accordance with its respective laws and regulations. 2. The customs authorities of the importing Party may deny preferential tariff treatment if: (a) the goods do not meet the requirements of this Chapter to consider them as originating in the exporting Party; and/or (b) the other requirements of this Chapter are not met, including: i. the requirements of Article 6.9 of this Agreement; ii. the submitted Certificate of Origin has not been duly completed as specified in Annex 3 to this Agreement; (c) the verification procedures undertaken under Article 6.28 of this Agreement are unable to establish the origin of the goods or indicate the inconsistency of the origin criteria; (d) the verification authority of the exporting Party has confirmed that the Certificate of Origin had not been issued (i.e. forged) or had been annulled (withdrawn); (e) the customs authority of the importing Party receives no reply within a maximum of six months after the date of a verification request made to the verification authority of the exporting Party, or if the response to the request does not contain sufficient information to conclude whether the goods originate in a Party; 3. Where the importing Party determines through verification procedures that an exporter or producer has engaged in providing false and/or incomplete information for the purposes of obtaining Certificates of Origin, customs authorities of the importing Party may deny preferential tariff treatment to a good for which an importer in its territory claims preferential tariff treatment where the good does not meet the requirements of Chapter 3 or where the importer fails to comply with any of the relevant requirements of Chapter 3. 2. Where the denial of preferential treatment is due to the signature that appears in the Certificate of Origin, the Importing Party may accept a clarification letter from the exporting Party confirming the authenticity of Certificate of Origin. Such clarification letter may be issued directly from the exporting Party to the importing Party or through the exporter of the good. 3. Export of consignments accompanied identical goods covered by an authentic Certificate Certificates of Origin will not be subjected issued to any detention that exporter or delays by producer in accordance with the Customs Authorities of the importing countryrespective domestic laws and regulations. 4. In case cases as set out in subparagraph (b) of reasonable doubt about the authenticity paragraph 2 of a Certificate of Origin, the Customs Authority this Article customs authorities of the importing country may seek Party are not required to make a clarification from verification request, as provided for in Article 6.28 of this Agreement, to the certifying agency of the exporting country which will furnish the same within a period of 30 days. Meanwhile, the subject consignment will be allowed entry into the importing country on a provisional basis against a bond or a guarantee i.e. a legally binding undertaking as may be required. After examining the information so provided by the certifying authority, the Customs Authority in the importing country would take appropriate action to finalise the provisional assessment. 5. Where the clarification carried on in paragraph 4 is not conclusive, the importing Party may, upon informing the exporting Party and with the knowledge of the importer concerned and with the consent of the exporter or manufacturer concerned, visit the exporter or manufacturer concerned authorized body for the purpose purposes of verifying the preference claim. If no consent is given by the exporter or manufacturer concerned within a period making decisions on denial of 45 days, the importing party may disallow the preferential tariff preference for the particular Certificate of Origintreatment.