Principle of territoriality

Principle of territoriality

 

1. The conditions set out in Chapter II relating to the acquisition of originating status shall be fulfilled without interruption in a Party.

2. If originating goods exported from a Party return from a non-Party, they shall be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that the returning goods:

a) are the same as those exported.

b) have not undergone any operation beyond what is necessary to preserve them in good condition while they were in that non-Party or while being exported.

 

Article 17. Non-alteration

 

1. Products declared for home use in a Party shall be the same products as exported from the other Party in which they are considered to originate. They shall not have been altered, transformed in any way during transport or storage or subjected to operations other than operations:

a) to preserve them in good condition.

b) other than adding or affixing marks, labels, seals or any other documentation to ensure compliance with specific domestic requirements of the importing Party.

c) the operations in paragraphs a and b have been carried out under customs supervision in the country or countries of transit or splitting prior to being declared for home use.

2. Storage of products or consignments may take place provided they remain under customs supervision in the country or countries of transit.

3. The splitting of consignments may take place where carried out by the exporter or under his responsibility, provided they remain under customs supervision in the country or countries of splitting.

4. In case of doubt, the importing Party may request the declarant to provide evidence of compliance, which may be given by any means, including:

a) contractual transport documents such as bills of lading.

b) factual or concrete evidence based on marking or numbering of packages.

c) any evidence related to the goods themselves.

d) a certificate of non-manipulation provided by the customs authorities of the country or countries of transit or splitting, or any other documents demonstrating that the goods remained under customs supervision in the country or countries of transit or splitting.

5. For the purpose of paragraph 4, “in case of doubt” means that the importing Party has the discretion of determining the cases for which the declarant is requested to provide evidence of compliance with paragraph 4 but it cannot routinely require the submission of that evidence.

 

Article 18. Exhibitions

 

1. Originating products sent for exhibition in a country other than a Party and sold after the exhibition for importation in a Party shall benefit on importation from the provisions of this Agreement provided it is shown to the satisfaction of the customs authorities that:

a) an exporter has consigned these products from a Party to the country in which the exhibition is held and has exhibited them there.

b) the products have been sold or otherwise disposed of by that exporter to a person in the consignee in the importing Party.

c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition.

d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

2. A proof of origin must be issued or made out in accordance with Chapter III and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the conditions under which the products have been exhibited may be required.

3. Paragraph 1 applies to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products, provided that the products remain under customs control.

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