Thông tư 15/2010/TT-BCT thực hiện quy tắc xuất xứ trong Hiệp định Thương mại hàng hóa ASEAN-Ấn Độ

• Số hiệu: 15/2010/TT-BCT
• Loại văn bản: Thông tư
• Nơi ban hành: Bộ Công thương
• Người ký: Nguyễn Thành Biên
• Ngày ban hành: 15/04/2010

THE MINISTRY OF INDUSTRY AND TRADE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No.: 15/2010/TT-BCT	Hanoi, April 15, 2010

CIRCULAR

ON IMPLEMENTATION OF THE RULES OF ORIGIN PROVIDED IN THE ASEAN-INDIA FREE TRADE AREA AGREEMENT

THE MINISTRY OF INDUSTRY AND TRADE

Pursuant to the Government's Decree No. 189/ 2007/ND-CP of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the ASEAN-India Free Trade Area Agreement concluded in Thailand on August 13, 2009, and on October 24, 2009, between the member states of the Association of Southeast Asian Nations and India;

Pursuant to the Government's Decree No. 19/ 2006/ND-CP of February 20, 2006, detailing the Commercial Law regarding origin of goods;

The Minister of Industry and Trade prescribes the implementation of the rules of origin provided in the ASEAN-India Free Trade Area Agreement as follows:

Chapter I

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Article 1. Goods eligible for issuance of certificates of origin form AI

A good eligible for issuance of a certificate of origin form AI (below referred to as C/O) means an originating good under the provisions of Appendix 1 to this Circular for which a C/O is issued by a C/O form AI issuer.

Article 2. Interpretation of terms

1. The ASEAN-India Free Trade Area Agreement means an agreement officially concluded in Thailand on August 13, 2009, and on October 24, 2009, between the member states of the Association of Southeast Asian Nations and India (below referred to as AIFTA Agreement).

2. Vietnamese issuer of C/O form AI (below referred to as C/O issuer) means organizations specified in Annex 10 to this Circular (not printed herein).

3. Applicant for C/O form AI (below referred to as C/O applicant), means an exporter, producer or a lawfully authorized representative of an exporter or producer.

4. eCOSys means Vietnam's certificate of origin management and issuance electronic system at http://www.ecosys.gov.vn.

Article 3. Responsibilities of C/O applicants C/O applicants shall:

1. Register trader dossiers with C/O issuers under Article 5;

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3. Prove that their exports satisfy all origin requirements and facilitate the verification of the origin of these goods by C/O issuers;

4. Take responsibility before law for the accuracy and truthfulness of their declarations related to C/O applications, including cases of authorization by exporters;

5. Promptly report to C/O issuers at which traders have filed C/O applications on C/O issued by Vietnamese C/O issuers which are rejected by importing countries (if any);

6. Facilitate the verification by C/O issuers at production establishments or places where exports are raised, grown, harvested and processed;

7. Prove the authenticity of the origin of exported goods at the request of the Ministry of Industry and Trade. C/O issuers or customs offices of Vietnam or importing countries.

Article 4. Responsibilities of C/O issuers C/O issuers shall:

1. Give guidance to C/O applicants upon request;

2. Receive and examine trader dossiers and C/O application dossiers;

3. Verify the actual origin of products when necessary;

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5. Send specimens of signatures of persons authorized to sign C/O and their seals to the Ministry of Industry and Trade (the Import and Export Department) under the Ministry's regulations for registration with competent authorities of importing countries;

6. Settle complaints related to C/O issuance according to their competence;

7. Re-verify the origin of exported goods at the request of competent authorities of importing countries;

8. Exchange information relating to the C/O issuance with other C/O issuers;

9. Make reports and participate in all professional training courses on origin and respond to other requests under regulations of the Ministry of Industry and Trade.

Chapter II

PROCEDURES FOR C/O ISSUANCE

Article 5. Registration of trader dossiers

1. C/O applicants may be considered for C/O issuance only at places with which they have registered their trader dossiers and after they have completed trader dossier registration procedures. A trader dossier comprises:

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b/The trader's business registration certificate (a certified true copy);

c/ Tax identification number certificate (a certified true copy);

d/ A list of production establishments (if any) of the trader (Annex 8, not printed herein).

2. Before the C/O application, any change in the trader dossier shall be notified to, the C/O issuer with which this dossier has been registered. A trader dossier shall be updated once every two (2) years.

3. In case of a force majeure circumstance or for a plausible reason, if wishing to- get a C/O issued by a C/O issuer different from that with which it has registered the trader dossier, a C/O applicant shall provide written plausible reasons for the non-application at the C/O issuer with which it has registered the trader dossier, and register the trader dossier with the new C/O issuer.

Article 6. C/O application dossier

1. A C/O application dossier comprises:

a/ The C/O application form (Annex 7, not printed herein) which has been full/'and duly filled in as guided in Annex 6 (not printed herein);

b/ The C/O form (Annex 5, not printed herein) which has been fully filled in;

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d/ The commercial invoice;

e/ The bill of lading or equivalent document in case the trader has no bill of lading. When a back-to- back C/O is issued for the whole goods lot or part of the goods lot brought from a non-tariff zone into the domestic market, this document may be exempted if the trader does not actually hold it.

Pending the availability of the customs declaration for which customs procedures have been completed and the bill of lading (or any document-equivalent to bill of lading), the C/O applicant submit these documents later within fifteen (1ST'working days after the date of receipt of C/O.

2. When finding it necessary, the C/O issuer may request the C/O applicant to supply additional documents related to the exports, such as customs declaration of imported materials and auxiliary materials export permit (if any); purchase and sale contract; value-added invoices on the purchase and sale of domestic materials and auxiliary materials; samples of materials and auxiliary materials or exports; description of the manufacturing process with HS headings of input materials and products (for change in tariff classification criteria or good manufacturing or processing operation criteria); or calculation of the regional value content (RVC) (for RVC criteria); and other documents proving the origin of exports.

3. The papers specified at Points c, d and e of Clause 1 in Clause 2 may be copies bearing the signature and true-copy stamps of traders' representatives at law or authorized persons, together with their originals for comparison at the request of C/O issuers when necessary.

For traders joining the eCOSys, their persons authorized to sign C/O applications shall declare data via the eCOSys, give their e-signatures and transmit them to C/O issuers. After examining the dossiers on the eCOSys. If agreeing to issue C/O, C/O issuers shall notify such via the eCOSys to applying traders to submit complete dossiers on paper to C/O issuers for comparison before issuing C/O.

Article 7. Receipt of C/O application dossiers

When C/O applicants file their dossiers, record officers shall receive and examine these dossiers, then notify C/O applicants in dossier receipts or other written forms of any of the following actions:

1. Issuance of C/O under Article 8;

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3. Refusal to issue C/O when detecting that:

a/ C/O applicants fail to register trader dossiers under Article 5;

b/ C/O application dossiers are inaccurate or incomplete as required in Article 6:

c/ C/O applicants have not yet submitted documents which are allowed to be submitted later under Article 6;

d/  Dossiers contain contradictory details;

e/ C/O application dossiers are filed with offices other than those with which trader dossiers have been registered;

f/ C/O declarations are filled in by handwriting, or contain erasures or unreadable contents, or printed in multicolor inks;

g/ There are lawful grounds for evidencing that goods are non-originating under this Circular or C/O applicants have committed fraudulent or dishonest acts in proving the origin of their goods.

Article 8. Issuance of C/O

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2. C/O issuers may make verification visits to production establishments if they see that the dossier examination provides insufficient grounds for C/O issuance or detect signs of illegal acts in connection to previously issued C/O. Verifiers of C/O issuers shall make minutes of verification results and request C/O applicants and/or exporters to jointly sign these minutes. In case C/O applicants and/or exporters refuse to sign these minutes, verifiers shall write the reasons for such refusal in the minutes and sign them for certification.

The time limit for issuing or refusing to issue a C/O in this case is five (5) working days after the C/O applicant files a complete dossier.

3. In the course of consideration for C/O issuance, if detecting goods which fail to satisfy origin requirements or C/O application dossiers which are incomplete or invalid, C/O issuers shall notify such to C/O applicants under Clause 2 or 3, Article 7.

4. The verification must not impede the delivery of goods or payment by exporters, unless it is due to the fault of exporters.

Article 9. Withdrawal of issued C/O

C/O issuers may withdraw C/O they have issued in the following cases:

1. Exporters or C/O applicants have forged documents.

2. Issued C/O are not conformable with the origin criteria.

Chapter III

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Article 10. Competence to sign C/O

Only persons who have completed procedures for specimen signature registration with the Ministry of Industry and Trade for forwarding to the ASEAN Secretariat for registration with competent authorities of importing countries may sign and issue C/O.

Article 11. Focal point

The Import and Export Department of the Ministry of Industry and Trade shall act as the focal point performing the following jobs:

1. Guiding and inspecting the C/O issuance;

2. Carrying out procedures for registering specimens of signatures of persons competent to sign and issue C/O and specimens of seals of Vietnamese C/O issuers with the ASEAN Secretariat, and forwarding specimens of signatures of persons competent to sign and issue C/O and specimens of seals of C/O issuers of AIFTA Agreement member states to the Ministry of Finance (the General Department of Customs):

3. Assisting the Minister of Industry and Trade in settling matters related to the issuance of C/O.

Article 12. Reporting regime

1. C/O issuers shall update information on C/ O issuance on the eCOSys on a daily basis. Information updates must cover all information required to be declared in C/O application dossiers.

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Article 13. Implementation provision

1. This Circular takes effect on June 1,2010.-

FOR THE MINISTER OF INDUSTRY AND TRADE
DEPUTY MINISTER




Nguyen Thanh Bien

ANNEX 1

RULES OF ORIGIN
(Enclosed with the Circular No. 15/2010/TT-BCT dated April 15, 2010 of the Minister of Industry and Trade on application of Rules of Origin in the Asean-India Free Trade Agreement)

Article 1. Definitions 

For the purposes of this Annex, the term:

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2. “FOB” means the free-on-board value of the good, inclusive of the cost of transport to the port or site of final shipment abroad.

3. “material” means raw materials, ingredients, parts, components, subassembly and/or goods that are physically incorporated into another good or are subject to a process in the production of another good;

4. “originating products” means products that qualify as originating in accordance with the provisions of Article 2;

5. “production” means methods of obtaining goods including growing, mining, harvesting, raising, breeding, extracting, gathering, collecting, capturing, fishing, trapping, hunting, manufacturing, producing, processing or assembling a good;

6. “Product Specific Rules" are rules that specify that the materials have undergone a change in tariff classification or a specific manufacturing or processing operation, or satisfy a regional value content (or an ad valorem percentage) or a combination of any of these criteria;

7. "product” means products which are wholly obtained/produced or being manufactured, even if it is intended for later use in another manufacturing operation.

8. “identical and interchangeable materials” means materials being of the same kind possessing similar technical and physical characteristics, and which once they are incorporated into the finished product cannot be distinguished from one another for origin purposes.

Article 2. Origin criteria

Products imported by a Party which are consigned directly within the meaning of Article 8 shall be deemed to be originating and eligible for preferential tariff treatment if they conform to the origin requirements under any one of the following:

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2. Products not wholly produced or obtained in the exporting Party provided that the said products are eligible under Article 4 or 5 or 6.

Article 3. Wholly produced or obtained products

Within the meaning of Clause 1 Article 2, the following shall be considered as wholly produced or obtained in an exporting Party:  

1. Plant[1] and plant products grown and harvested in that Party;

2. Live animals[2] born and raised in that Party;

3. Products[3] obtained from live animals referred to in Clause 2 of this Article;

4. Products obtained from hunting, trapping, fishing, aquaculture, gathering or capturing conducted in that Party;

5. Minerals and other naturally occurring substances, not included in Clauses 1 to 4, extracted or taken from that Party’s soil, waters, seabed or beneath the seabed;

6. Products taken from the waters, seabed or beneath the seabed outside the territorial waters of that Party, provided that that Party has the rights to exploit such waters, seabed and beneath the seabed in accordance with the United Nations Convention on the Law of the Sea, 1982;

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8. Products processed and/or made on board factory ships registered with a Party and entitled to fly the flag of that Party, exclusively from products referred to in Clause 7 of this Article;

9. Articles collected in the Party which can no longer perform their original purpose nor are capable of being restored or repaired and are fit only for disposal or recovery of parts of raw materials, or for recycling purposes[4]; and

10. Products obtained or produced in a Party exclusively from products referred to in Clauses 1 to 9 of this Article.

Article 4. Not wholly produced or obtained products 

1. For the purposes of Clause 2 Article 2, a product shall be deemed to be originating if:

a) The AIFTA content is not less than thirty five percent (35%) of the FOB value; and

b) The non-originating materials have undergone at least a change in tariff sub-heading (6-digit level) (CTSH) level of the Harmonized System,

provided that the final process of the manufacture is performed within the territory of the exporting Party.

2. For the purposes of this Article, the formula for the 35% AIFTA content is calculated respectively as follows5:

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AIFTA material cost

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Direct labour cost

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Direct overhead cost

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Other cost

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Profit

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≥ 35%

FOB price

b) Indirect method:

Value of imported non-AIFTA materials, parts or produce

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Value of undetermined origin materials, parts or produce

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≤ 65%

FOB price

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a) The CIF value at the time of importation of the materials, parts or produce; or

b) The earliest ascertained price paid for the materials, parts or produce of undetermined origin in the territory of the Party where the working or processing takes place;

4. The method of calculating the AIFTA content is as set out in Appendix 2.

Article 5. Cumulative rule of origin  

Unless otherwise provided for in this Annex, products which comply with origin requirements provided for in Article 2 and which are used in a Party as materials for a product which is eligible for preferential treatment under the AIFTA Agreement shall be considered as products originating in that Party where working or processing of the product has taken place.

Article 6. Product specific rules

Notwithstanding the provisions of Article 4, products which satisfy the Product Specific Rules shall be considered as originating from that Party where working or processing of the product has taken place. The list of Product Specific Rules may be promulgated in the future.

Article 7. Minimal operations and processes  

1. Notwithstanding any provisions in this Annex, a product shall not be considered originating in a Party if the following operations are undertaken exclusively by itself or in combination in the territory of that Party:

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b) Simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting;

c) Changes of packing and breaking up and assembly of consignments;

d) Simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or boards, and all other simple packing operations;

dd) Affixing of marks, labels or other like distinguishing signs on products or their packaging;

e) Simple mixing of products whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Annex to enable them to be considered as originating products;

g) Simple assembly of parts of products to constitute a complete product;

h) Disassembly;

h) Slaughter which means the mere killing of animals; and

i) Mere dilution with water or another substance that does not materially alter the characteristics of the products.

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a) Simple combining operations, labeling, pressing, cleaning or dry cleaning or packaging operations, or any combination thereof;

b) Cutting to length or width and hemming, stitching or overlocking fabrics which are readily identifiable as being intended for a particular commercial use;

c) Trimming and/or joining together by sewing, looping, linking, attaching of accessory articles such as straps, bands, beads, cords, rings and eyelets;

d) One or more finishing operations on yarns, fabrics or other textile articles, such as bleaching, waterproofing, decating, shrinking, mercerizing, or similar operations; or

dd) Dyeing or printing of fabrics or yarns.

Article 8. Direct consignment  

The following shall be considered as consigned directly from the exporting Party to the importing Party:

1. If the products are transported passing through the territory of any other AIFTA Parties;

2. If the products are transported without passing through the territory of any non-AIFTA Parties;

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a) The transit entry is justified for geographical reason or by consideration related exclusively to transport requirements;

b) The products have not entered into trade or consumption there; and

c) The products have not undergone any operation there other than unloading and reloading or any operation required to keep them in good condition.

Article 9. Treatment of packages and packing materials

1. Packages and packing materials for retail sale, when classified together with the packaged product, shall not be taken into account in considering whether all non-originating materials used in the manufacture of a product fulfill the criterion corresponding to a change of tariff classification of the said product.

2. Where a product is subject to an ad valorem percentage criterion, the value of the packages and packing materials for retail sale shall be taken into account in its origin assessment, in case the packing is considered as forming a whole with products.

3. The containers and packing materials exclusively used for the transport of a product shall not be taken into account for determining the origin of any good.

Article 10. Accessories, spare parts, tools and instructional or other information material

1. The origin of accessories, spare parts, tools and instructional or other information materials presented with the products shall not be taken into account in determining the origin of the products, provided that such accessories, spare parts, tools and instructional or other information materials are:

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b) classified with the products at the time of assessment of customs duties by the importing Party.

However, if the products are subject to a qualifying AIFTA content requirement, the value of such accessories, spare parts, tools and instructional or other information material shall be taken into account as originating or non-originating materials, as the case may be, in calculating the qualifying AIFTA content.

Article 11. Indirect materials

In order to determine whether a product originates in a Party, any indirect material such as power and fuel, plant and equipment, or machines and tools used to obtain such products shall be treated as originating whether such material originates in non-Parties or not, and its value shall be the cost registered in the accounting records of the producer of the export goods.

Article 12. Identical and interchangeable materials

For the purposes of establishing if a product is originating when it is manufactured utilizing both originating and non-originating materials, mixed or physically combined, the origin of such materials can be determined by generally accepted accounting principles of stock control applicable/inventory management practiced in the exporting Party.

Article 13. C/O Form AI

A claim that a product shall be accepted as eligible for preferential tariff treatment shall be supported by a C/O Form AI issued by a government authority designated by the exporting Party and notified to the other Parties in accordance with the C/O issuance and certification procedures as set out in Appendix 4./.

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OPERATIONAL CERTIFICATION PROCEDURES ON THE ISSUANCE AND VERIFICATION OF THE CERTIFICATE OF ORIGIN (C/O)
(Promulgated together with the Circular No. 15/2010/TT-BCT dated April 15, 2010 of the Ministry of Industry and Trade on implementation of Rules of Origin in the ASEAN-India Free Trade Area Agreement)

AUTHORITIES

Article 1.

The C/O form AI (hereinafter referred to as “AI C/O”) shall be issued by the Government authorities (Issuing Authority) of the exporting party.

APPLICATIONS

Article 2

The exporter and/or the manufacturer of the products shall apply in writing to the Issuing Authority requesting for the pre-exportation verification of the origin of the products. The result of the verification, subject to review periodically or whenever appropriate, shall be accepted as the supporting evidence in verifying the origin of the said products to be exported thereafter. The pre-exportation verification may not apply to products, the origin of which by their nature can be easily verified.

Article 3

At the time of carrying out the formalities for exporting the products under preferential tariff treatment, the exporter or his authorised representative shall submit a written application for the AI C/O together with appropriate supporting documents proving that the products to be exported qualify for the issuance of an AI C/O.

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Article 4

1. The Issuing Authority shall carry out proper examination upon each application for the AI C/O to ensure that:

a) the application and the AI C/O are duly completed and signed by the authorised signatory;

b) the origin of the product is in conformity with the Rules set out in the Appendix 1;

c) other statements of the AI C/O correspond to supporting documentary evidence submitted; and

d) description, quantity and weight of goods, marks and numbers on packages, and number and type of packages, as specified, conform to the products to be exported.

2. Multiple items declared on a single invoice and single AI C/O shall be allowed, provided that each item qualifies separately in its own right.

1. The AI C/O shall be in A4 size, and white paper in conformity with the specimen as in the Appendix 5. It shall be made in English. The AI C/O shall comprise one (1) original and three (3) copies. Each AI C/O shall bear a reference number as given separately by each place or office of issuance.

2. The original copy shall be forwarded, together with the triplicate, by the exporter to the importer. Only the original copy will be submitted by the importer to the Customs Authority at the port or place of importation. The duplicate shall be retained by the Issuing Authority in the exporting party. The triplicate shall be retained by the importer. The quadruplicate shall be retained by the exporter.

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4. In cases where an AI C/O is not accepted, as stated in Clause 3, the Issuing Authority shall provide detailed, exhaustive clarification addressing the grounds for the denial of preferential tariff treatment raised by the importing party. The Customs Authority of the importing party shall accept the AI C/O and grant the preferential tariff treatment if the clarification is found satisfactory.

Article 6

To implement the provisions of Articles 4, 5 and 6 of the Appendix 1, the AI C/O issued by the exporting party shall indicate the relevant rules and applicable percentage of AIFTA content in box 8.

Article 7

No erasures or superimpositions shall be allowed on the AI C/O. Any alteration shall be made by striking out the errors and making any required corrections. Such alterations and corrections shall be approved and certified by an official of the Issuing Authority authorised to sign the AI C/O. Unused spaces shall be crossed out to prevent any subsequent addition.

Article 8

1. The AI C/O shall be issued at the time of exportation, or within three (03) working days from the date of shipment.

2. In exceptional cases where an AI C/O has not been issued at the time of exportation or within three (03) working days from the date of shipment due to inadvertent errors or omissions or other valid causes, the AI C/O may be issued retroactively but no longer than twelve months from the date of shipment, bearing the words “Issued Retroactively”.

Article 9

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a) a valid AI C/O from the original exporting party is presented only to the Issuing Authority of the intermediate party;

b) the importer of the intermediate party and the exporter who applies for the back-to-back AI C/O in the intermediate party are the same;

c) validity of the back-to-back AI C/O shall have the same end-date as the original AI C/O;

d) the originating products re-exported could either be full or part of the original consignment;

dd) the consignment which is to be re-exported using the back-to-back AI C/O must not undergo any further processing in the intermediate party, except for repacking and logistics activities consistent with Article 8 of the Appendix 1;

e) the product shall remain in the intermediate party's customs control, including its free trade zones and bonded areas approved by the customs. The product shall not enter into trade or consumption in the intermediate party;

g) information on the back-to-back AI C/O includes the name of the party which issued the original AI C/O, date of issuance and reference number; and

h) verification procedures as set out in Articles 14 and 15 are applied.

2. The original exporting party, the intermediate party and the importing party shall cooperate in the process of verification. The copy of the AI C/O issued by the original exporting party shall be given to the Customs Authority of the importing party if it requests for the same during the process of verification.

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In the event of theft, loss or destruction of an AI C/O, the exporter may apply in writing to the Issuing Authority which issued it for the certified true copy of the original and the triplicate to be made on the basis of the export documents in their possession bearing the endorsement of the words "CERTIFIED TRUE COPY" (in lieu of the original certificate) in box 12. This copy shall bear the date of the original AI C/O. The certified true copy of an AI C/O shall be issued within the validity period of the original AI C/O and on condition that the exporter provides to the relevant Issuing Authority the quadruplicate copy.

PRESENTATION

Article 11

Except for the AI C/O referred to in Clause 1 of Article 9, the original AI C/O shall be submitted to the Customs Authority at the time of lodging the import entry for the products concerned.

Article 12

The following time limit for the presentation of the AI C/O shall be observed:

1. the AI C/O shall be valid for twelve months from the date of its issuance;

2. the AI C/O shall be submitted to the Customs Authority of the importing party within its validity period;

3. where the AI C/O is submitted to the relevant Customs Authority of the importing party after the expiration of its validity period, such AI C/O shall be accepted, if failure to observe the time limit was as a result of force majeure or any other cause beyond the control of the exporter; and

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Article 13

1. Where the origin of a product is not in doubt, the discovery of minor discrepancies between the statements made in the AI C/O and those made in the documents submitted to the Customs Authority of the importing party for the purpose of carrying out the formalities for importing the products shall not invalidate the AI C/O, if it does in fact correspond to the said products.

2. For multiple items declared under the same AI C/O, a problem encountered with one of the items listed shall not affect or delay the granting of preferential tariff treatment and customs clearance of the remaining items listed in that AI C/O. Point c Clause 1 of Article 14 may be applied to the problematic items.

VERIFICATION

Article 14

1. The importing party may request a retroactive check at random and/or when it has reasonable doubt as to the authenticity of the document or as to the accuracy of the information regarding the true origin of the good in question or of certain parts thereof. The Issuing Authority shall conduct a retroactive check on the producer/exporter's cost statement based on the current cost and prices within a six (06) month timeframe prior to the date of exportation subject to the following procedures:

a) the request for a retroactive check shall be accompanied by the AI C/O concerned and specify the reasons and any additional information suggesting that the particulars given in the said AI C/O may be inaccurate, unless the retroactive check is requested on a random basis;

b) the Issuing Authority shall respond to the request promptly and reply within three (03) months after receipt of the request for retroactive check;

c) In case of reasonable doubt as to the authenticity or accuracy of the document, the Customs Authority of the importing party may suspend provision of preferential tariff treatment while awaiting the result of verification. However, it may release the goods to the importer subject to any administrative measures deemed necessary, provided that they are not subject to import prohibition or restriction and there is no suspicion of fraud; and

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2. The Customs Authority of the importing party may request an importer for information or documents relating to the origin of imported good in accordance with its domestic laws and regulations before requesting the retroactive check pursuant to Clause 1.

Article 15

1. If the importing party is not satisfied with the outcome of the retroactive check, it may, under exceptional circumstances, request verification visits to the exporting party. Prior to conducting a verification visit:

a) the importing party shall deliver a written notification of its intention to conduct the verification visit, through the designated customs authority or any competent authority, simultaneously to:

- the producer/exporter whose premises are to be visited;

- the Issuing Authority of the party in the territory of which the verification visit is to occur;

- the designated customs authority or any competent authority of the party in the territory of which the verification visit is to occur; and

- the importer of the goods subject to the verification visit.

b) the written notification mentioned in Point a of this Article shall be as comprehensive as possible and include:

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- the name of the producer/exporter whose premises are to be visited;

- the proposed date of the verification visit;

- the coverage scope or purpose of the proposed verification visit, including reference to the goods subject to the verification; and

- the names and designation of the officials performing the verification visit;

c) an importing party shall obtain the written consent of the producer/exporter whose premises are to be visited.

d) when a written consent from the producer/exporter is not obtained within thirty (30) days from the date of receipt of the notification pursuant to Point a of this Article, the notifying party may deny preferential tariff treatment to the goods referred to in the said AI C/O that would have been subject to the verification visit; and

dd) the Issuing Authority receiving the notification may postpone the proposed verification visit and notify the importing party of such intention within fifteen (15) days from the date of receipt of the notification. Notwithstanding any postponement, any verification visit shall be carried out within sixty (60) days from the date of such receipt, or for such longer period as the parties may agree.

2. The importing party conducting the verification visit shall provide the producer/exporter whose goods are subject to the verification and the relevant Issuing Authority with a written determination of whether that goods qualify as originating goods.

3. The determination of whether the goods qualify as originating goods shall be notified to the producer/exporter, and the relevant Issuing Authority. Any suspended preferential tariff treatment shall be reinstated upon a determination that the goods qualify as originating goods.

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5. The verification visit process, including the actual visit and the determination whether or not the goods subject to verification is originating, shall be carried out and its results communicated to the Issuing Authority within a maximum period of six (06) months from the date when the verification visit was conducted. While the process of verification is being undertaken, Point c Clause 1 of Article 14 shall be applied.

Article 16

1. The application for AI C/O and all documents related to such application shall be retained by the Issuing Authorities for not less than two (02) years from the date of issuance.

2. Information relating to the validity of the AI C/O shall be furnished upon request of the importing party.

3. Any information communicated between the authorities concerned shall be treated as confidential and shall be used for the validation of AI C/O purposes only.

SPECIAL CASES

Article 17

When destination of all or part of the products exported to a specified port of a party is changed, before or after their arrival in the importing party, the following shall be observed:

1. If the products have already been submitted to the Customs Authority in the specified importing party, the AI C/O shall, by a written application of the importer, be endorsed to this effect for all or part of products by the said authorities and the original returned to the importer.

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Article 18

For the purpose of implementing Clause 1 Article 8 of the Appendix 1, where transportation is effected through the territory of one or more non-AIFTA party, the following shall be produced to the Customs Authority of the importing party:

1. a through Bill of Lading issued in the exporting party;

2. an AI C/O issued by the relevant Issuing Authority of the exporting party;

3. a copy of the original commercial invoice in respect of the product; and

4. other relevant supporting documents, if any, in evidence that the requirements of clause 3 Article 8 of the Appendix 1 are being complied with (if any).

1. Products sent from a party for exhibition in another party, when sold during or after the exhibition, shall benefit from the preferential tariff treatment if the products meet the requirements of the rules specified in the Appendix 1, provided it is shown to the satisfaction of the relevant Customs Authority of the importing party that:

a) an exporter has dispatched those products from the exporting party to the party where the exhibition is held and has exhibited them there;

b) the exporter has sold the products or transferred them to a consignee in the importing party; and

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2. For the purposes of implementing Clause 1 above, the AI C/O must be produced to the relevant Customs Authority of the importing party. The name and address of the exhibition must be indicated, a certificate issued by the relevant authority of the party where the exhibition took place together with supporting documents prescribed in Clause 4 of Article 18 may be required.

3. Clause 1 of this Article shall apply to any exhibition, fair or similar show or display in the venue where the products remain under customs control during these events.

1 Plant here refers to all plant life, including forestry products, fruit, flowers, vegetables, trees, seaweed, fungi and live plants.

[2] Animals referred to in Clause 2 and Clause 3 covers all animal life, including mammals, birds, fish, crustaceans, molluscs, reptiles, and living organisms.

[3] Products refer to those obtained from live animals without further processing, including milk, eggs, natural honey, hair, wool, semen and dung.

[4] This would cover all scrap and waste including scrap and waste resulting from manufacturing or processing operations or consumption in the same country, scrap machinery, discarded packaging and all products that can no longer perform the purpose for which they were produced and are fit only for disposal for the recovery of raw materials.  Such manufacturing or processing operations shall include all types of processing, not only industrial or chemical but also mining, agriculture, construction, refining, incineration and sewage treatment operations.

5 The Parties shall be given the flexibility to adopt the method of calculating the AIFTA Content, whether it is the direct or indirect method. In order to promote transparency, consistency and certainty, each Party shall adhere to one method.  Any change in the method of calculation shall be notified to all the other Parties at least six (6) months prior to the adoption of the new method. It is understood that any verification of the AIFTA content by the importing Party shall be done on the basis of the method used by the exporting Party.