Common use of Verifications Process Clause in Contracts

Verifications Process. 1. For purposes of determining whether a good imported into one Party from the other Party qualifies as an originating good, the competent authority of the importing Party may conduct a verification process by means of: (a) written requests for additional information from the importer; (b) written requests for additional information from the exporter or producer through the competent authority of the exporting Party; (c) requests that the competent authority of the exporting Party assists in verifying the origin of the good; (d) or, in the case where any request under subparagraphs (a), (b) or (c) fails to satisfy the concern of the importing Party, that Party may request on-site visits to observe the verification process conducted by the competent authority of the exporting Party in the premises of the exporter or producer in the territory of the exporting Party. 2. For purposes of subparagraphs 1(b) and 1(c), all the information requested by the competent authority of the importing Party and responded by the competent authority of the exporting Party shall be communicated in English. 3. For purposes of subparagraphs 1(a) and 1(b), where the importer, exporter or producer does not answer the written request for additional information made by the importing Party, within a period of 90 days from the date on which it was received, the importing Party may deny the preferential tariff treatment. 4. For purposes of subparagraph 1(c), the competent authority of the importing Party shall provide the competent authority of the exporting Party with: (a) the reasons why such assistance for verification is requested; (b) the Certificate of Origin of the good, or a copy thereof; and (c) any information and documents as may be necessary for the purpose of such request. The competent authority of the exporting Party shall provide the competent authority of the importing Party a written statement in English, regarding the origin of the good under verification process, including the following information: (a) description of the production process of the good; (b) description and tariff classification of originating and non-originating materials, indicating the supplier of such materials; and (c) detailed explanation of how the good obtained the status of an originating good. In the cases where the competent authority of the exporting Party does not provide the written statement within 150 days from the date of request or where the written statement does not contain sufficient information, the importing Party shall determine the origin of the good based on the best information available at that moment. 5. For purposes of subparagraph 1(d), the importing Party shall notify by writing, 30 days prior to the on-site visit, the competent authority of the exporting Party of such a request. In the case where the competent authority of the exporting Party does not give its written consent to such a request within 30 days from the receipt of the notification, the importing Party may deny the preferential tariff treatment to the relevant good. 6. The importing Party shall, within 300 days from the start of the verification process, notify the exporting Party, in writing, of the results of the determination on the origin of the good, as well as the legal basis and findings of fact, based on which the determination was made. 7. Where, at the time of importation, the customs authority of the importing Party has a reasonable doubt on the origin of the good, covered under the Certificate of Origin, the good may be released upon a deposit or the payment of duties, pending the outcome of the verification process. The above deposit or duties paid shall be refunded once the outcome of the verification process confirms that the good qualifies as an originating good. 8. A Party may suspend preferential tariff treatment to an importer on any subsequent import of a good when the competent authority had already determined that an identical good was not eligible for such treatment, until it is demonstrated that the good complies with the provisions under this Chapter.