FTAA - Free Trade Area of the Americas

Draft Agreement

Chapter on Market Access

(Continuation)

[ADMINISTRATION OF THE RULES OF ORIGIN] 

[2.1 Uniform and consistent interpretation and application] 

[2.1.1 For purposes of this [Chapter]: 

a) The Harmonized System [in force and effect as of the date of this Agreement] shall be the basis for the tariff classification in this [Chapter]

[b) The determination of whether a heading or subheading under the Harmonized System provides for and specifically describes both a good and its parts shall be made on the basis of the nomenclature of the heading or subheading [[or the][and the] General Rules of Interpretation, the Chapter Notes or the Section Notes of the Harmonized System] ] 

c) [the principles of] the Customs Valuation Agreement [of the WTO] shall be used [as a basis] for determining the value of a good or a material. ] 

[2.1.2 For purposes of this [Chapter], upon applying the Customs Valuation Agreement [of the WTO as a basis] for determining the origin of a good, it shall be considered that: 

a) the principles of the Customs Valuation Agreement shall apply to domestic transactions, with the changes required by the circumstances, as they would be applied to international transactions; and 

b) the provisions of this [Chapter] shall take precedence over those of the Customs Valuation Agreement [in the event they are incompatible]. 

[c) One Party may only accumulate origin with goods originating from countries to which this Agreement applies.]

[d) In cases where there is no specific common rule of origin with regard to a good for all the Parties, the rules of origin of this [Chapter] shall apply only between the exporting Party and the importing Party, considering the other Parties that do not have said specific common rule of origin as non-Party countries.]] 

[2.1.3 For purposes of this [Chapter], the Parties shall identify a core set of data elements required to certify the origin of goods.]

[2.2 Incorporation of modifications ] 

[The [Committee on Rules] [Working Group] of [Origin and] Customs Procedures, which [shall be subordinate to the TNC and] shall be composed of a representative of the competent authority of each Party, is hereby established.] [it shall meet at least once a year, or at the request of any of them.]

[The [Committee] Working Group on Rules of Origin, established by the Parties, shall present a report to the Administrative Commission on the proposed modifications, which shall issue any rulings it may deem pertinent.]
[The Committee shall have, among others, the following functions: 

[- propose to the TNC amendments to this [Chapter] and to the [Chapter] on customs procedures, as required;]]

[a) endeavoring to agree on:

i) the interpretation, application, and administration of this Chapter;

ii) tariff classification and valuation matters relating to rulings to determine origin;

iii) modifications to the certificate or declaration of origin referred to in Article 1.1;

iv) any other matter referred to it by a Party; and,

b) examining proposals for customs-related administrative or operational modifications related to this section that could affect trade flows among the Parties]

[Any Party considering that this [Chapter] needs to be modified to include changes in productive processes or other issues, may submit the modification proposal to the other Parties, together with the supporting reasons and studies, for examination and adopting any corresponding measure according to this [Chapter].]

[No provision in this Chapter shall be construed to prevent a Party from issuing a ruling to determine origin or from taking such other action as it considers necessary because it is awaiting resolution of a matter placed before this Committee.]

[2.3 Competent authorities ]

[2.3.1 The competent authority of the FTAA on Administration of the Rules of Origin shall be a [Committee] [Working Group] that will be responsible for the application, interpretation, administration and modification of this Origin Regime]

[The authorised bodies provided for in this [Chapter] will, no later than thirty days after the entry into force of this Agreement, exchange through diplomatic channels the lists of the authorised bodies and the official stamps of the authorised bodies. Any changes to such listings shall enter into force thirty days after receipt of notification.]

[2.4 Advance rulings]

[ 2.4.1 The Parties agree that advance rulings on origin may be issued, at the request of an exporter from a third country, an importer or any person having a good reason to do so, in keeping with the legal requirements set forth in the national legislation of the respective countries.]

[¹⁸[2.4.1 [Each Party shall stipulate that, through its] [Through the][competent authority][customs administration], advance rulings [will][shall] be promptly issued, in writing, prior to the importation of a good into its territory. These advance rulings shall be issued by the [competent authority][customs administration] of the territory of the importing Party at the request of the importer in its territory, or of the exporter or producer in the territory of the other Party, on the basis of the facts and circumstances stated by same, and with regard to: 

a) whether the good qualifies as originating, in accordance with [this] [Chapter] [... ]

b) whether the non-originating materials used in the production of a good satisfy the corresponding change in tariff classification indicated in the annex of specific rules of the [Chapter] on Rules of Origin; 

[c) [whether the good satisfies the regional value content established [in this [Chapter]];] 

d) whether the method applied by the exporter or producer in the territory of another Party, in accordance with the principles of the Customs Valuation Agreement to calculate the value of a good or of the materials used in the production of a good, for which the advance ruling is requested, is appropriate for determining whether the good satisfies the regional value content, in accordance with the [Chapter] on Rules of Origin;] 

[e) whether a good that re-enters its territory after having been exported from its territory to the territory of another Party for the purposes of repair or alteration qualifies to receive duty-free treatment, in accordance with the article [… of the [Chapter]] [on goods re-imported after being repaired or altered]; ]

[f) whether the marking of the country of origin made or proposed for a good meets the requirements established in the article on country of origin marking; and]

g) other issues agreed by the Parties.] 

[2.4.2 Each Party shall adopt or maintain procedures for issuing advance rulings , to include: 

a) information reasonably required in order to process the request; 

b) the power of its [competent authority][customs administration]to at any time request additional information from the person requesting the advance ruling during the process of evaluating the request; 

c) the obligation of the [competent authority][customs administration] to issue the advance ruling once it has obtained all necessary information from the person [requesting it][{requesting} the advance ruling during the process of evaluating the request;] 

d) the obligation of the [competent authority][customs administration] to issue the advance ruling in a complete, substantiated, and reasoned manner.] 

[2.4.3 Each Party shall apply advance rulings to importations to its territory, as of the date of the issuance of the ruling, or as of a later date indicated therein, unless the advance ruling is amended or repealed, pursuant to the provisions of paragraph 2.4.5.]

[2.4.4 Each Party shall grant any person requesting an advance ruling the same treatment, interpretation, and application of the provisions of the chapters on Market Access and Rules of Origin as it has granted to any other person to whom it has issued an advance ruling, when the facts and circumstances are identical in all [essential][material] respects.] 

[2.4.5 The advance ruling may be amended or repealed by the [competent authority][customs administration] in the following cases: 

a) when the advance ruling was based on some error: 

i) of fact, 

ii) in the tariff classification of the good or of the materials that are the object of the ruling, 

[iii) in the application of the regional value content, pursuant to the [Chapter] on Rules of Origin,] or 

[iv) in the application of the rules for determining whether a good which re-enters [its territory after having been exported from its territory to the territory of another Party] for repair or alteration qualifies to receive duty-free treatment, pursuant to [Chapter] ___ (National Treatment and Market Access) [or a modification with respect to the country of origin marking {or} of the [Chapter] (National Treatment and Market Access)]]; 

[b) when the ruling is not consistent with an interpretation that the Parties have agreed upon, with regard to [Chapter] ____ (National Treatment and Market Access) or an amendment regarding the country of origin marking or of [Chapter] ____ [(Rules of Origin)][(National Treatment and Market Access)]; 

[c) when there is a change in the circumstances or facts on which it was based; ]

[d) for the purpose of applying an amendment to [Chapter] ____ (National Treatment and Market Access), to [Chapter] ____ (Rules of Origin), to this [Chapter], or to the [Uniform Regulations]; or 

e) for the purpose of enforcing an administrative or judicial decision or adapting to a change in the legislation of the Party that has issued the advance ruling.] ]

[2.4.6 Each Party shall stipulate that any amendment or repeal of an advance ruling takes effect on the date it is issued or on a later date established therein, and may not be applied to importations of a good made prior to these dates, unless the person to whom it has been issued has failed to act in accordance with its terms and conditions.] [Nevertheless, if an importer requests {retroactive} application of an amendment or repeal of such a ruling, a Party may grant retroactive application.]

[2.4.6 The Party issuing an advance ruling may review an advance ruling to establish its continued validity.]

[2.4.7 Notwithstanding the provisions of paragraph 2.4.6, the Party issuing the advance ruling shall postpone the date of the entry into force of the amendment or repeal for a period not to exceed ___[90][30] days, when the person to whom the advance ruling has been issued has relied on it in good faith [and to his detriment]]

[2.4.8 Each Party shall stipulate that in examining the regional value content of a good for which an advance ruling has been issued, its [competent authority][customs administration] assesses whether: 

a) the exporter or producer is complying with the terms and conditions of the advance ruling; 

b) the operations of the exporter or of the producer are consistent with the essential facts on which that ruling is based; and

c) the substantiating data and calculations used in applying the criteria or the method for calculating the value are correct in all essential respects.]

[During importation of goods subject to an advanced ruling, the competent authority may assess whether or not the exporter or producer meets the terms and conditions thereof and specifically, whether the transaction is consonant with the material facts on which the resolution was based. When examining the regional value content, the competent authority must assess, most especially, whether the verifying data and calculations used in applying the criterion or the method followed in calculating the value are correct in all material aspects]

[2.4.9 [Each Party shall stipulate that, when its] [When the] [competent authority][customs administration] determines that any of the requirements established in the above paragraph have not been met, [the competent authority][customs administration][it] may amend or repeal the advance ruling, as circumstances warrant.] 

[2.4.10 [Each Party shall stipulate that, when its] [When the] [competent authority][customs administration] determines that the advance ruling is based on incorrect information, the person to whom it has been issued shall not be sanctioned if that person shows that he/she acted with reasonable care and in good faith in representing the facts and circumstances that gave rise to the advance ruling.] 

[2.4.11 [Each Party shall stipulate that,] when an advance ruling is issued to a person who has falsely represented or omitted substantial circumstances or facts on the basis of which the advance ruling was issued, or who has not complied with the terms and conditions thereof, the [competent authority][customs administration]issuing the advance ruling may apply [the] measures[, including sanctions]established in its legislation.] 

[2.4.12 [The Parties shall stipulate that] the possessor of an advance ruling may only use it while the facts {and }{or} circumstances on the basis of which it was issued continue to exist. In such case, the possessor of the ruling may present the necessary information so that the issuing authority may proceed, pursuant to the provisions of paragraph 5.]

[2.4.13 No advance ruling shall be issued for a good that is subject to a verification of origin procedure or to any review or challenge proceeding in the territory of any of the Parties]]

2.5 Review and appeal 

[[1.)][2.5.1] Each Party shall grant exporters or producers of another Party [substantially] the same rights of review and appeal of [origin determinations,][decisions with respect to origin] rulings [to determine origin] [and advance rulings] provided for their importers.] [ that signs a certificate or declaration of origin covering a good that has been dealt with by a ruling to determine origin pursuant to paragraph 3.1.12 of Article 3.1.] 

[[2.)][2.5.2] The rights referred to in paragraph 1 include access to at least one administrative process of review, independent of the official or entity responsible for the [ruling to determine] origin [ruling] [or [the] advance ruling] subject to review, and access to a legal [or paralegal] review process of the ruling or of the decision made in the last instance of administrative review[, pursuant to the national legislation of each Party].] 

[Each Party will establish procedures for the review of decisions by the authorised bodies and the customs authorities regarding the certification and verification of origin.]

[2.6 Regulations]

[2.6.1 [The Parties] [The Administrative Commission] shall establish regulatory standards for interpretation, application, and administration [of [Chapter] … (national treatment and market access for goods), of [Chapter] … (rules of origin), and of this [Chapter]], which may be amended at any subsequent time. [Topics that would be regulated through regulatory standards are]: 

- Format and instructions for completing the certificate and declaration of origin. 

- Time period for providing a copy of [the certificate of origin]["certificate of origin"][certification] to the customs authority. 

- Timeliness in correcting an import document due to errors in [the certificate of origin]["certificate of origin"][certification]. 

- Time period for which the importer must keep [the certificate of origin] ["certificate of origin"][certification] and any other documentation related to the importation.

- Requirements that the importer must fulfill in order to request the return of customs duties as a result of having [not] requested preferential tariff treatment [after importation]. 

- Time period during which the exporter must keep records and documents related to the origin of the good and manner in which these are kept. 

- Definition of series of importations, as regards the exceptions to the requirement for a {[certificate of origin]["certificate of origin"][certification]}

- Regulation of other means of verification of origin that may be agreed upon by the Parties (verification services). 

- Requirements for validity of notifications of means of verification. 

- General or specific verification questionnaire. 

- Time period for responding to the questionnaire. 

- Possibility that the exporter requests an extension for responding to the verification questionnaire. 

- Authorities and persons to whom notice must be given regarding the verification visit. 

- Communication between customs administrations to determine the authority that must be notified of the verification visit. 

- Contents of the notice of verification visit. 

- Amendments to the above notice. 

- Request to the importer for information on the origin of the good. 

- Time period for consenting to the visit. 

- Time period for requesting postponement of the verification visit. 

- Procedure for issuing advance rulings. 

- Powers of the customs authority to reject an advance ruling request due to a lack of sufficient information.]

[- Others as the Parties agree]

3. VERIFICATION [AND CONTROL] OF ORIGIN

3.1 Procedures for verifying origin 

[3.1.1 The customs authority of the importing Party may not prevent customs clearance of the goods [in cases where there is][solely on the basis of] doubt as to the authenticity of the[certificate of origin] ["certificate of origin"][certification], presumption of non-compliance with the rules established in this [Chapter], nor when [the certificate of origin]["certificate of origin"][certification] is not presented, contains errors, or is incomplete. In such situations, a bond for the value of the duties applicable to third countries may be demanded, pursuant to the [internal] domestic legislation of the Parties.]

[If the information referred to in the preceding paragraph is insufficient to clarify doubts on the origin of the goods covered by a certificate of origin, the importing Party may decide to open an investigation, and shall notify the competent authority of the exporting State Party of that decision.]

[(¹⁹) [3.1.1 The importing Party may request information from the exporting Party as to the origin of a good.] 

[ 3.1.1 - The Customs Authorities of the Parties may carry out verification of origin at random or when they have reasonable doubt as regards the authenticity of the certificate of origin or the accuracy of the information regarding the origin of the goods.]

3.1.2 [As part of {this}{an} investigation] In order to establish if a good imported from the territory of another Party that has preferential tariff treatment qualifies as originating, the importing Party may, through its [competent [customs] authority][customs administration], verify the origin of the good {[only]} by the following means: 

a) written questionnaires [and requests for information] sent to [importers] exporters or producers of the exporting Party; [or]

[a.1) requiring the certifying authority of the exporting Party to furnish the information needed to verify the authenticity of the certificate(s) of origin, the truthfulness of the information contained therein, or the origin of the goods. Should the information furnished by the exporting Party be insufficient to determine the origin of the merchandise, the importing Party shall be entitled to request that the other Party provide additional information;]

b) [verification] visits to the facilities of the exporter or producer in the territory of the exporting Party in order to examine the [productive processes] accounting records and the documents referred to in Article ___, [1.A.6 and 1.4 that demonstrate compliance with the rules of origin]and to [inspect] [examine]the facilities and materials or products used in the production of the goods; [and] [ that are used in the production of the good and, when applicable, those used in the production of the materials]; [or]

c) [[such] [a request asking the competent authority of the exporting Party to perform certain operations or procedures for the purpose of verifying the origin of the goods; or]]

d) [other procedures agreed to by the Parties]

[Where a claim for preference is properly made, it may not be denied without first commencing the process of verifying the claim.]

[The verification procedure set forth in section c), paragraph 3.1.2. would only be used in the case of commercial operations worth US$50,000 (fifty thousand dollars of the United States of America) or more and in the event that the origin of the goods cannot be accurately determined using the method provided for in section a), paragraph 3.1.2.]

[In the event that the information requested under section c), paragraph 3.1.2 is not delivered in the term provided for or if the reply does not provide sufficient information to determine the origin of the goods, the competent authority of the importing Party may refuse preferential tariff treatement for the goods covered by the certificates involved in the verification procedure by means of a written resolution that includes the arguments of fact and law on which the resolution is based.]

[Once an investigation has been opened, the importing Parting shall adopt any measures it considers necessary to guarantee fiscal interest, but in no case shall it detain the importation procedures of the goods.]

[3.1.2 - The Parties, acting through their respective Customs Authorities and authorised bodies, shall assist each other in the conduct of verification.]

[3.1.A For the purposes of section (a.1) of paragraph 3.1.2, the customs authority of the importing Party shall indicate on the request the number and date of the certificates of origin for which verification is sought, together with the purpose and scope of the request.

3.1.B For the purposes of paragraph 3.1.A, the certifying authority of the exporting Party shall furnish the required information, in the terms set forth in section (a.1) of paragraph 3.1.2, within no more than one hundred and twenty (120) days following the date on which the corresponding request was received. 

3.1.C In the event that the information requested under section (a.1) of paragraph 3.1.2 is not delivered in the time stipulated in paragraph 3.1.B, or if the reply does not provide sufficient information to determine the authenticity or veracity of the certificate of origin or the origin of the goods, the competent authority of the importing Party may refuse preferential tariff treatment for the goods covered by the certificates involved in the verification procedure by means of a written resolution that includes the arguments of fact and law on which the resolution is based]

3.1.3 [The exporter or producer who receives a questionnaire under paragraph 3.1.2(a) shall respond to and return said questionnaire within [a period of [no more than]____[30] days from the date [received][notified]]. During this interval, the exporter or producer [may apply in [writing, [only once,]] to the importing Party requesting an extension, which can not [exceed ___ {[30]}days]]][exceed the term granted]. [, or such longer period as agreed to by the verifying Party.]

[3.1.3 - Where the Customs Authorities of the importing Party wish verification of origin to be carried out, those Customs Authorities shall communicate with the relevant authorised body in the exporting Party, setting out the substance of the enquiry. The authorised body in the exporting Party shall respond to this enquiry within . . . days, providing the information requested as fully as possible. Where the authorised body in the exporting Party considers it appropriate, it may invite the Customs Authorities of the importing Party to participate in the investigation.]

3.1.4. [If the exporter or producer does not return the [duly completed] questionnaire within the corresponding interval [or {its}extension,] the importing Party may deny preferential tariff treatment. ][ by means of a written resolution that includes the arguments of fact and law.]

[ 3.1.4 In all cases, any disputes between the importer and the Customs Authorities of the importing Party will be settled under the legislation of the importing Party.]

3.1.5 [Before making a verification visit in accordance with the provisions established in paragraph 3.1.2(b), the importing Party shall be required to notify in writing [at least 30 days in advance], through its [competent [customs] authority][customs administration], its intention to make the visit. [The notification shall be sent to the exporter or producer who is to be visited, the [competent [customs] authority][customs administration]of the Party in whose territory the visit will take place and, if the latter so requests, the embassy of this Party in the territory of the importing Party.] The [competent [customs] authority][customs administration]of the importing Party shall obtain the written consent of the exporter or producer to be visited. ]

[3.1.6 The notification referred to in paragraph 5 shall contain the following: 

a) the identification of the [competent [customs]authority][customs administration]making 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 object and scope of the proposed verification visit, with specific mention of the good(s) that are the object of the verification; 

e) the names [ personal data] and titles of the officials who will make the verification visit; and 

f) the legal grounds for the verification visit.] 

[3.1.D Any modification to the information referred to in sections (a), (c), and (e) of paragraph 3.1.6 shall be notified in writing to the exporter or producer and to the customs authority of the exporting Party prior to the verification visit. Any modification to the information referred to in sections (b), (d), and (f) of paragraph 3.1.6 shall be notified pursuant to the terms of paragraph 3.1.5.]

3.1.7 [ If during the ____[30][45][days following receipt of the notification of the proposed verification visit according to paragraph 3.1.5] [term], the exporter or producer does not give his written consent for said visit, the importing Party may deny preferential tariff treatment to the good(s) that is the reason for the verification visit. ]

3.1.8 [ [Each Party shall stipulate that] when the [exporter or producer][{the}{its} customs authority] receives a notification in accordance with paragraph 5, it may request, [within ___[15] days after the date the notification is received,][a one-time postponement] of the proposed verification visit, for a period not to exceed (60)…. days as of the date the notification is received, or for a longer period agreed to by the Parties. [For this purpose, the [competent authority][customs administration] of the importing Party and of the exporting Party must be notified as to the postponement of the visit.]]

3.1.9 [ A Party shall not deny preferential tariff treatment based solely on the request to postpone the verification visit, pursuant to the stipulations of paragraph 3.1.8. [or 3.1.9]]

[3.1.9 Each Party shall stipulate that when the customs administration receives a notification in accordance with paragraph 5, it may request, within 15 days after the date the notification is received, a delay in the proposed verification visit and provide the reasons therefore. For this purpose, the exporter or producer of the exporting Party must be notified as to the postponement of the visit.]

3.1.10[ [Each Party shall allow] the exporter or producer whose good(s) are the object of a verification visit, [to] [may] designate [up to]two observers who will be present during the visit, provided said observers intervene solely in that capacity. If no observers are designated by the exporter or producer, that omission shall not result in the postponement of the visit. ]

[3.1.11 [Each Party] [The competent authority] shall verify compliance with the requirements of the regional value content, the de minimis calculation, or any other measure contained in the [Chapter] on Rules of Origin, [through its competent [customs] authority,] in accordance with generally accepted accounting principles which apply in the territory of the Party from which the good was exported.] 

[3.1.11” Each Party shall, through its customs administration, when conducting a verification of origin to which Generally Accepted Accounting Principles or Generally Accepted Auditing Standards may be relevant, accept and make use of such principles as are applicable in the territory of the Party of the exporter or the producer, as the case may be.]

3.1.12 [[As part of the procedure to verify origin,][ After the verification has concluded] the [competent [customs] authority][customs administration] shall provide the exporter or producer whose good(s) have been the object of the verification visit with a [written ruling in which it is determined][determination as to] whether or not the good qualifies as originating; said ruling shall also include the findings of fact and the legal grounds of the determination.]

[Within a period of XX after the initiation of an origin verification procedure, the competent authority shall provide the exporter or producer whose good or goods are the subject of the origin 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. Nonetheless, the customs authority may extend said period for up to a period of XX, after notifying the producer or exporter of the good. A ruling on the determination of origin issued outside the aforementioned period or its extension shall have no effect.]

[If the ruling mentioned in the preceding paragraph is not satisfactory, the exporting Party may appeal to the dispute settlement system of the Agreement.]

[If one of the Parties believes that another Party is carrying out importations from third Parties in which there are doubts regarding conformity with the present Rules of Origin, it may request, through the Administrative Commission, that consultations be held to ascertain the real production conditions of such goods, so that the Party requesting the consultation may evaluate the advisability of asking that an investigation be opened on the originating nature of the good(s) against the third Party.]

[In the case of the preceding paragraph, the Party consulted shall provide appropriate consideration and respond within XX days, at the latest. The consultations shall be carried out in a place agreed to by the Parties and both their proceedings and their conclusions shall be reported to the Commission.]

[The Administrative Commission shall keep an updated record of the rulings adopted by the Parties on the determination of origin.]

3.1.13 [ When the verification conducted by a Party indicates that an exporter or producer has certified or declared more than once and in a false or unfounded manner, that a good qualifies as originating, the importing Party may suspend preferential tariff treatment for identical goods that said person exports or produces until the person proves that the good complies with the stipulations of the [Chapter] on Rules of Origin.]

3.1.14 [ [Each Party shall stipulate that when its] [When the] [competent [customs]authority][customs administration] determines [ by means of a resolution] that a good imported into its territory does not qualify as originating in accordance with the tariff classification, or with the value applied by the Party to one or more of the materials used in the production of the good, and this differs from the tariff classification or value applied to the materials by the Party from whose territory the good was exported, the ruling of the importing Party shall not take effect until both the importer of the good and [the person] [ exporter or producer] who [filled out and] signed [the certificate of origin] ["certificate of origin"][certification] [or declaration][covering that good] have been notified in writing.]

[3.1.15 The Party shall not apply the ruling issued in accordance with paragraph 14 to an importation made prior to the date on which the ruling enters into force, provided that:

a) the [competent [customs]authority][customs administration] from whose territory the good has been exported has issued an [advance ruling in accordance with Article ___ , or any other] ruling concerning the tariff classification or value of the materials, [or has given consistent treatment to the entry of the materials under the tariff classification or value at issue,]on which one could rely; [ in accordance with its laws and regulations ]and 

b) the aforementioned rulings {[described in section (a)]} are issued prior to the notification of the initiation of the verification of origin]]

[3.1.16 If a Party denies preferential tariff treatment to a good pursuant to a determination made under paragraph 12, {[3.1.14]} 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 {declaration} 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.]

[A Party shall not apply such a determination of origin arising from a verification to an importation made before the effective date of A the determination, provided that the importer has demonstrated that prior to making the claims at issue it has relied upon either:]

[a ruling on the tariff classification or on the eligibility for tariff preference of such materials by the customs administration of the Party into whose territory the material was imported.] 

[the consistent treatment of the material at issue in terms of classification or valuation, as demonstrated by importations of the material into that territory]. 

[When a Party denies preferential tariff treatment to a good pursuant to a determination of origin arising from a verification, the denial will go into effect no sooner than 30 days after the date of the determination or notice that the issue is under review, provided that the importer of the good, or the person who executed the certification for the good, demonstrates that it has relied in good faith on the tariff classification or customs value applied to such materials by the Party from whose territory the good was exported.]

{[3.1.16 When a Party denies preferential tariff treatment to a good pursuant to a resolution made under paragraph 3.1.14, said Party shall postpone the effective date of the denial for a period not exceeding ninety (90) days, provided that the importer of the good or the exporter or producer who signed the certificate or declaration of origin for that good demonstrates that he relied in good faith, to his 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]}
[3.1.X The customs authority of the importing Party may not impede customs clearance of goods when there is doubt as to the authenticity of the certificate, presumption of noncompliance with the provisions of this [Chapter], or when the certificate of origin has not been not presented, contains errors, or is incomplete. Under such circumstances, a bond for the value of the duties applicable to third parties may be required, pursuant to the national legislation of the Parties.]

[3.1.X When a certificate of origin is not presented, the customs authorities of the importing Party shall provide a 15 calendar-day period, as of the date of entry for consumption or customs release of the good, for due presentation of the document. After that period, the bond will be collected or the corresponding levies charged.]

[With the exception of cases where a certificate of origin is not presented, bonds that are set shall have an initial maximum duration of forty (40) calendar days as of the date of entry for consumption or customs release of the good, which may be extended for another forty (40) calendar days if, during the first bond period, compliance with the provisions of this [Chapter] is not established.]

[3.1X Customs authorities shall notify the exporting Party and the (agency responsible for administering the Agreement) that a bond has been set within three (3) working days of the adoption of the measure, and shall include antecedents, developments or the justifications for same.]

[Once the measure has been communicated in accordance with the above, it shall be incumbent on the exporting Party to clarify the situation to the customs authorities of the importing Party and, if necessary, to furnish proof demonstrating compliance with the rules of origin. If no clarification or demonstration is made regarding the measure adopted within thirty (30) {calendar} days of the adoption of the measure, or if such action has not led to a solution of the problem, any of the Parties involved may request the intervention of the (agency responsible for administering the Agreement), providing it with all the information it has at its disposal.]

[The (agency responsible for administering the Agreement) shall issue its ruling on compliance or lack of compliance with the provisions of this [Chapter] within thirty (30) calendar days of receiving the request.]

[If, as a consequence of this procedure, the situation that gave rise to the setting of bond is resolved, the bond shall be lifted.]

[If it is established that the certificate of origin is not authentic, or if the good does not qualify as originating, the importing Party may collect the bond.]

 

Continuation: 3.2 Confidentiality

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18 This bracket closes at the end of point 2.4.13 and constitutes, as a whole, an alternative position to the one contained in the previous paragraph.

19 This bracket closes at the end of point 3.1.15(b) and constitutes, as a whole, an alternative position to the one contained in the previous paragraph (3.1.1).