Temporary Suspension of Preferential Tariff Treatment. 1. Where a Party has found:
a) systematic fraud regarding claims of preferential tariff treatment under this Agreement in respect of the goods exported or produced by a person of the other Party; or
b) that the other Party systematically and unjustifiably refuses to fulfil obligations under Articles 4.30 and/or 4.31 of this Agreement, such Party may in exceptional circumstances temporarily suspend preferential tariff treatment under this Agreement.
2. Temporary suspension of preferential tariff treatment referred to in paragraph 1 of this Article may be applied to the goods concerned:
a) of a person where the importing Party has concluded that such person of the exporting Party has committed systematic fraud regarding claims of preferential tariff treatment under this Agreement;
b) of the person who is subject to verification request or verification visit request referred to in subparagraph b) of paragraph 1 of this Article.
3. Where the importing Party has concluded that the already suspended preferential tariff treatment in accordance with subparagraph a) of paragraph 2 of this Article had not resulted in cessation of systematic fraud regarding claims of preferential tariff treatment under this Agreement, it may temporarily suspend preferential tariff treatment with regard to identical goods classified in the same tariff lines at 8-10 digit level of the respective domestic nomenclatures of the Parties.
4. For the purposes of this Article:
a) a finding of systematic fraud can be made where a Party has concluded that a person of the other Party has systematically provided false or incorrect information in order to obtain preferential tariff treatment under this Agreement as a result of an investigation based on objective, compelling and verifiable information;
b) systematic and unjustifiable refusal to fulfil obligations under Articles 4.30 and/or 4.31 of this Agreement means a systematic refusal to verify the originating status of the goods concerned and/or to carry out verification visits as requested by a Party or absence of response to verification and verification visit requests;
c) identical goods means the goods which are the same in all respects including physical characteristics, quality and reputation.
5. A Party that has made a finding pursuant to paragraph 1 or 3 of this Article, shall:
a) notify the other Party and provide the information and evidence upon which the finding was based;
b) engage in consultations with the other Party with a view...
Temporary Suspension of Preferential Tariff Treatment. 1. a Party may temporarily suspend, in accordance with paragraphs 2 through 5, the preferential tariff treatment under this agreement with respect to a good exported or produced by a person of the other Party if the Party:
(a) as a result of an investigation based on objective, compelling and verifiable information, makes a finding that the person of the other Party has committed systematic breaches of customs legislation in order to obtain preferential tariff treatment under this agreement; or
(b) makes a finding that the other Party systematically and unjustifiably refuses to cooperate with respect to the investi gation of breaches of customs legislation under article 6.13.4 (Cooperation), and the Party requesting cooperation, based on objective, compelling and verifiable information, has reasonable grounds to conclude that the person of the other Party has committed systematic breaches of customs legislation in order to obtain preferential tariff treatment under this agreement.
2. a Party that has made a finding referred to in paragraph 1 shall:
(a) notify the customs authority of the other Party and provide the information and evidence upon which the finding was based;
(b) engage in consultations with the authorities of the other Party with a view to achieving a mutually acceptable resolution that addresses the concerns that resulted in the finding; and
(c) provide written notice to that person of the other Party that includes the information that is the basis of the finding.
