Common use of Suspension or Denial of Preferential Tariff Treatment Clause in Contracts

Suspension or Denial of Preferential Tariff Treatment. 1. Notwithstanding paragraph 1 of Article 3.17 (Claim for Preferential Tariff Treatment), the importing Party may suspend the application of preferential tariff treatment to a good that is the subject of an origin verification action under Article 3.20 (Origin Verification) for the duration of that action, or any part thereof. The importing Party shall permit the release of the good, subject to lodgement of a security equivalent to the amount of the MFN duty payable or payment of the MFN duty on that good, provided that the good is not subject to import prohibition or restriction and there is no suspicion of fraud. 2. The importing Party may deny a claim for preferential tariff treatment or recover unpaid duties where: (a) the good does not meet the requirements of this Chapter; (b) the producer, exporter or importer of the good fails to comply with any of the relevant requirements for obtaining preferential tariff treatment; or (c) action taken under Article 3.20 (Origin Verification) failed to verify the eligibility of the good for preferential tariff treatment. 3. The Customs Administration of the importing Party shall not reject a Declaration of Origin or Certificate of Origin only for the reason that the invoice is issued in a non-Party or by a third-party.