Common use of Origin Verification Procedures Clause in Contracts

Origin Verification Procedures. 1. The importing Party, through its competent authority, may request information about the origin of a good from the certifying authority of the exporting Party. The competent authority of the importing Party may also request its Embassy in the territory of the other Party for assistance in those matters. 2. For purposes of determining whether a good imported into its territory from the territory of the other Party under preferential tariff treatment according to this agreement qualifies as originating, a Party may verify the origin of the good through its competent authority by means of: a) written questionnaires or requests for information sent directly to the importer in its territory or the exporter or producer in the territory of the other Party; b) verification visits to the exporter or producer in the territory of the other Party to review the records and documents referred to in Article 5.05, and to inspect the materials and facilities used in the production of the good in question; c) delegating its Embassy in the territory of the other Party to conduct the verification visit mentioned above; or d) other procedures as the Parties may agree to. 3. For the purposes of this Article, the questionnaires, requests, official letters, determinations of origin, notifications or any other written communications sent by the competent authority to the importer, exporter or the producer for origin verification, shall be considered valid, provided that they are done by the following means: a) certified mails with receipts of acknowledgement or other ways that confirm that the importer, exporter or producer has received the documents; b) official communications through the Embassies of the Parties whenever the competent authority requires; or c) any other way as the Parties may agree to. 4. In a written questionnaire or request for information referred to in paragraph 2 a) it shall: a) indicate the time period, which shall be no less than thirty (30) days from the date of receipt, that the importer, exporter or producer has to duly complete and return the questionnaire or provide the information requested; and b) include the notification of intention to deny preferential tariff treatment, in case the importer, exporter or producer does not duly complete and return the questionnaire or provide the information requested within such time period. 5. The importer, exporter or producer who receives a questionnaire or request for information according to paragraph 2 a) shall duly complete and return the questionnaire or respond to the request for information within the time period established in paragraph 4 a) from the date of receipt. During that time period, the importer, exporter or producer may make a written request to the competent authority of the importing Party for an extension of no more than thirty (30) days. Such request shall not have the consequence of denial of the preferential tariff treatment. 6. Each Party shall provide that, even if the answered questionnaire or information requested referred to in paragraph 5 has been received within the specified time period, it may still request, through its competent authority, additional information from the importer, exporter or producer, by means of a subsequent questionnaire or request. In such cases the importer, exporter or producer shall answer the questionnaire or respond to the request within thirty (30) days from the date of receipt. 7. If the importer, exporter or producer does not duly complete a questionnaire, or does not return the questionnaire or provide the information requested within the time period established in paragraphs 4 a), 5 and 6 above, the importing Party may deny preferential tariff treatment to the goods subject to verification, by issuing a written determination of origin, including facts and the legal basis for that determination, to the importer, exporter or producer. 8. Prior to conducting a verification visit according to paragraph 2 b), the importing Party shall, through its competent authority, provide a written notification of its intention to conduct the visit. The notification shall be sent to the exporter or producer to be visited, to the certifying authority and the competent authority of the Party in whose territory the visit will be conducted, and, if necessary, to the Embassy of the other Party in the territory of the importing Party. The competent authority of the importing Party shall request written consent from the exporter or producer to be visited. 9. The notification referred to in paragraph 8 shall include: a) the name of the competent authority that sends 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 objective and scope of the verification visit, including the specific reference to the goods subject to verification; e) the names and positions of the officers conducting the verification visit; and f) the legal basis for carrying out the verification visit. 10. Any modification of the information referred to in the preceding paragraph shall also be notified according to paragraph 8. 11. If the exporter or producer has not given his written consent to a proposed verification visit within the thirty (30) days of the written notification as provided in paragraphs 8 and 9, the importing Party may deny preferential tariff treatment to the good or goods by notifying in writing to the importer, exporter or producer its determination, including facts and the legal basis for such denial. 12. Each Party shall provide that, when an exporter or producer receives a notification as provided in paragraphs 8 and 9, that exporter or producer may, within fifteen (15) days of receipt of the notification, notify in writing the competent authority of the importing Party, certifying authority and competent authority of the exporting Party, its decision to postpone only for once the proposed verification visit for a period no longer than sixty (60) days from the date the notification was received, or for a longer period as the Parties may agree to. 13. The Parties shall not deny the preferential tariff treatment to a good solely because a verification visit is postponed according to paragraph 12. 14. Each Party shall permit an exporter or producer who is subject to a verification visit to designate two observers to be present during the visit, provided that the observers do not participate in a manner other than as observers. Nevertheless, the failure of designating the observers by the exporter or producer shall not be a cause for postponing the visit. 15. Each Party shall require that an exporter or a producer provides the records and documents referred to in paragraph 1 a) of Article 5.05 to the competent authority of the importing Party conducting a verification visit. If the records and documents are not in possession of the exporter or producer, he/she may request the producer or supplier of the materials to deliver them to the competent authority mentioned above. 16. When the competent authority of the importing Party verifies whether the regional value content, the de minimis calculation or any other requirement established under Chapter 4 (Rules of Origin) have been fulfilled, it shall adopt, where applicable, the generally accepted accounting principles applied in the territory of the Party from which the good under verification was exported. 17. Once the verification visit has been concluded, the competent authority of the importing Party shall prepare a minute of the visit, which shall include the facts confirmed by it. The exporter or producer may sign this minute. 18. Within a period of one hundred and twenty (120) days from the conclusion of the verification of origin, the competent authority shall issue a written determination of origin, including the facts, results and the legal basis for such determination, and send it to the importer, exporter or producer of the good subject to verification according to paragraph 3, to determine whether or not the good qualifies as originating. 19. Where through a verification the importing Party determines that an importer, exporter or a producer has provided more than once, a false or unfounded certificate of origin or stating that a good qualifies as originating, the importing Party may suspend preferential tariff treatment to the identical goods imported, exported or produced by that person, until it is confirmed that such person is in compliance with all the requirements under Chapter 4 (Rules of Origin). The suspension and resumption of the preferential tariff treatment shall be accompanied by a written notification, including facts and the legal basis, to the importer, exporter or producer. 20. When the competent authority of the importing Party determines that a good imported into its territory does not qualify as originating, according to the tariff classification or the value applied by the Party to one or more materials used in the production of the good, which differs from the classification or the value applied to the materials by the Party from which the good was exported, that Party shall provide that its origin determination shall not take effect until it has been notified in writing to the certifying authority of the exporting Party, to the importer of the good, to the person that has completed and signed the certificate of origin, as well as to the producer of the good. 21. A Party shall not apply a determination issued under paragraph 20 to an importation made before the date of entry into force of the determination when: a) the competent authority of that Party from whose territory the good was exported, had issued a determination on the tariff classification or on the value of the materials, on which a person is entitled to rely; and b) the determination mentioned in the preceding subparagraph was issued prior to the notification of the origin verification.

Origin Verification Procedures. 1. The importing Party, through its competent authority, may may: (a) request information about the origin of a good from the certifying authority of the exporting Party. The competent authority of the importing Party may also ; and, (b) request its Embassy in the territory of the other Party for assistance in those matters. 2. For purposes of determining whether a good imported into its territory from the territory of the other Party under preferential tariff treatment according to this agreement qualifies as originating, a Party may verify the origin of the good through its competent authority by means of: (a) written questionnaires or requests for information sent directly to the importer in its territory or the exporter or producer in the territory of the other Party; (b) verification visits to the exporter or producer in the territory of the other Party to review the records and documents referred to in Article 5.055.05 (a), and to inspect the materials and facilities used in the production of the good in question; (c) delegating its Embassy in the territory of the other Party to conduct the verification visit mentioned abovevisit; or (d) other procedures as the Parties may agree to. 3. For the purposes of this Article, the questionnaires, requests, official letters, determinations of origin, notifications or any other written communications sent by the competent authority to the importer, exporter or the producer for origin verification, shall be considered valid, provided that they are done by the following means: (a) certified mails with receipts of acknowledgement or other ways that confirm that the importer, exporter or producer has received the documents; (b) official communications through the Embassies of the Parties whenever the competent authority requires; or (c) any other way as the Parties may agree toagree. 4. In a written questionnaire or request for information referred to in paragraph 2 (a) it shall: (a) indicate the time period, which shall be no less more than thirty (30) days from the date of receipt, that the importer, exporter or producer has to duly complete and return the questionnaire or provide the information requested; and (b) include the notification of intention to deny preferential tariff treatment, in case the importer, exporter or producer does not duly complete and return the questionnaire or does not provide the information requested within such time period. 5. The importer, exporter or producer who receives a questionnaire or request for information according to paragraph 2 (a) shall duly complete and return the questionnaire or respond to the request for information within the time period established in paragraph 4 (a) from the date of receipt. During that time period, the importer, exporter or producer may make a written request to the competent authority of the importing Party for an extension of no more than thirty (30) days. Such request A Party shall not have the consequence of denial of deny the preferential tariff treatmenttreatment based solely on the request of an extension for completing and returning the questionnaire or responding to the information request. 6. Each Party shall provide that, even if the answered questionnaire or information requested referred to in paragraph 5 has been received within the specified time period, it may still request, through its competent authority, additional information from the importer, exporter or producer, by means of a subsequent questionnaire or request. In such cases the importer, exporter or producer shall answer the questionnaire or respond to the request within thirty (30) days from the date of receipt. 7. If the importer, exporter or producer does not duly complete a questionnaire, or does not return the questionnaire or provide the information requested within the time period established in paragraphs 4 (a), 5 and 6 above, the importing Party may deny preferential tariff treatment to the goods subject to verification, by issuing a written determination of origin, including facts and the legal basis for that determination, to the importer, exporter or producer. 8. Prior to conducting a verification visit according to paragraph 2 (b), the importing Party shall, through its competent authority, provide a written notification of its intention to conduct the visit. The notification shall be sent to the exporter or producer to be visited, the importer, to the certifying authority and the competent authority of the Party in whose territory the visit will be conducted, and, if necessary, to the Embassy embassy of the other Party in the territory of the importing Party. The competent authority of the importing Party shall request the written consent from the exporter or producer to be visited, to make a verification visit. 9. The notification referred to in paragraph 8 shall include: (a) the name of the competent authority that sends 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 objective and scope of the verification visit, including the specific reference to the goods good subject to verification; (e) the names and positions of the officers conducting the verification visit; and (f) the legal basis for carrying out the verification visit. 10. Any modification of the information referred to in the preceding this paragraph shall also be notified according to paragraph 8. 1110. If the exporter or producer has not given his written consent to a for the making of the proposed verification visit within the thirty (30) days of the written notification as provided in paragraphs 8 and 9, the importing Party may deny preferential tariff treatment to the good or goods by notifying in writing to the importer, exporter or producer its determinationthe determination of origin, including facts and the legal basis for such denial. 1211. Each Party shall provide that, when an When the exporter or producer receives a notification as provided in according to paragraphs 8 and 9, that exporter or producer may, within the fifteen (15) days of receipt of from the notificationdate on which the notification was received may, notify one time only, request in writing the competent authority postposition of the importing Partyvisit with the corresponding justifications, certifying authority and competent authority of the exporting Party, its decision to postpone only for once the proposed verification visit for a period no longer than sixty thirty (6030) days from the date on which the notification was received, or for a longer period as term the Parties competent authority of the importing Party and the exporter or producer may agree toagree. For these purposes, the competent authority of the importing Party shall notify the postposition of the visit to the importer, exporter or producer of the good, the competent authority and the certifying authority of the exporting Party. 1312. The Parties A Party shall not deny the preferential tariff treatment based solely on the request to a good solely because a postpone the verification visit is postponed visit, according to paragraph 1211. 1413. Each Party shall permit an exporter or producer who is subject to a verification visit to designate two observers to be present during the visit, provided that the observers do not only participate in a manner other than as observersthat manner. Nevertheless, the failure of designating to designate the observers by the exporter or producer shall not be a cause for postponing the visit. 1514. Each Party shall require that an exporter or a producer provides the records and documents referred to in paragraph 1 Article 5.05 (a) of Article 5.05 to the competent authority of the importing Party conducting a verification visit. If the records and documents are not in possession of the exporter or producer, he/she the exporter may request to the producer of the good or the producer may request the producer or supplier of the materials materials, to deliver them these to the competent authority mentioned above. 16. When the competent authority of the importing Party. 15. A Party verifies whether may deny the preferential tariff treatment to an imported good subject to an origin verification, if the exporter or producer: (a) fails to provide the records or documents for determining the origin of the good, in accordance with the provisions of this Chapter and of Chapter 4 (Rules of Origin); or (b) denies access to the records or documents. 16. Each Party, through its competent authority, shall verify the compliance of the requirements of regional value content, the de minimis calculation De Minimis, or any other requirement established under provision contained in Chapter 4 (Rules of Origin) have been fulfilled, it shall adopt, where applicable, in compliance with the generally accepted accounting principles applied that apply in the territory of the Party from which the good under verification was exported. 17. Once the verification visit has been concluded, the competent authority of the importing Party shall prepare a minute of the visit, which shall include the facts confirmed by it. The exporter or producer producer, subject to the verification visit, may sign this minute. 18. Within a period of one hundred and twenty (120) days from the conclusion of the verification of origin, the competent authority of the importing Party shall issue a written determination of origin, including in writing, in which it is determined if the factsgood qualifies or not as originating, results which shall include the factual findings and the legal basis for such determination, the determination of origin and send it to notify the importer, exporter or producer producer, as well as the competent authority and certifying authority of the exporting Party the determination of origin. 19. When the period established in paragraph 18 concludes and the competent authority of the importing Party does not issue a determination of origin, the good subject to the verification according to paragraph 3, to determine whether or not of origin shall receive the good qualifies same preferential tariff treatment as originatingif it were an originating good. 1920. Where through a verification the importing Party determines that an importer, exporter or a producer has provided more than once, a false or unfounded certificate of origin or stating that a good qualifies as originating, the importing Party may suspend preferential tariff treatment to the identical goods imported, exported or produced by that person, until it is confirmed proved that such person is in compliance with all the requirements under Chapter 4 (Rules of Origin). The suspension ) and resumption of the preferential tariff treatment shall be accompanied by a written notification, including facts and the legal basis, to the importer, exporter or producerthis Chapter. 2021. When the competent authority of the importing Party determines that a good imported into its territory does not qualify as originating, the importer must pay any custom duties owed and other applicable charges according to the legislation of each Party. 22. In case the preferential tariff classification or treatment is resumed, the value applied by competent authority of the importing Party to one or more materials used shall issue a written determination of origin in which the production competent authority of the importing Party establishes the resumption of the preferential tariff treatment for the good, which differs from the classification or the value applied shall be notified to the materials by importer, exporter or producer and the Party from which the good was exported, that Party shall provide that its origin determination shall not take effect until it has been notified in writing to the competent authority and certifying authority of the exporting Party, to ; which shall include the importer factual findings and the legal basis of the good, to the person that has completed and signed the certificate of origin, as well as to the producer of the goodits determination. 2123. A Party shall not apply a determination of origin issued under paragraph 20 18 to an importation made before the date of entry into force of the determination whenorigin where: (a) the competent customs authority of that the exporting Party from whose territory the good was exported, had issued a determination on an advance ruling regarding the tariff classification or valuation of one or more materials used in the good under Article 5.07; (b) the importing Party’s determination is based on a tariff classification or valuation for such materials that is different than that provided for in the value of the materials, on which a person is entitled advance ruling referred to relyin subparagraph (a); and b(c) the determination mentioned in customs authority issued the preceding subparagraph was issued prior to advance ruling before the notification of the origin verificationimporting Party’s determination.