Explanatory Notes concerning Annex III — Definition of the concept of originating products and methods of administrative cooperation — to the Agreement establishing an Association between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part
Date: 2003-12-31
Institutions: European Commission
Subjects: Chile, administrative cooperation, association agreement (EU), customs regulations, originating product

C 321/22

EN

Official Journal of the European Union

31.12.2003

Explanatory Notes concerning Annex III — Definition of the concept of originating products and
methods of administrative cooperation — to the Agreement establishing an Association between
the European Community and its Member States, of the one part, and the Republic of Chile, of the
other part

(2003/C 321/06)

Article 1(f) — ‘Ex-works price’

The ex-works price of a product shall include:

— the value of all supplied materials used in manufacture; and

— all costs (material costs as well as other costs) effectively
incurred by the manufacturer. For example, the ex-works
price of recorded video cassettes, records, discs, media-
such products
carrying computer
comprising an element of intellectual property rights shall
as far as possible include all costs with regard to the use of
intellectual property rights for the manufacture of
the
goods, paid for by the manufacturer, whether or not the
holder of such rights has his seat or residence in the
country of production.

software and other

No account shall be taken of commercial price reductions (e.g.
for early payment, or large quantity deliveries).

Article 4(1)(e) — ‘Wholly obtained products’ — Hunting

The concept of ‘hunting’ laid down in Article 4(1)(e) shall also
be applicable to fishing conducted within inland waters (i.e.
rivers and lakes) in the Community or in Chile.

Article 9 — Origin rule for sets

The origin rule for sets applies only to sets within the meaning
of General Rule 3 for the interpretation of the Harmonized
System.

According to this provision each product of which the set is
composed, with the exception of products the value of which
does not exceed 15 per cent of the total value of the set, must
the origin criteria for the heading under which the
fulfil
product would have been classified if
it were a separate
product and not included in a set regardless of the heading
under which the whole set is classified in accordance with the
text of the General Rule referred to above.

These provisions remain applicable even if the 15 per cent
tolerance is used for that product which under the text of
the General Rule referred to above determines the classification
of the whole set.

Article 14 — Drawback in cases of errors

Drawback or remission of duty can only be given in the case
that a proof of origin has been wrongly issued or made out if
the following three conditions have been met:

(a) the wrongly issued or made out proof of origin is returned
to the authorities in the country of export, or, as an alter-
native, a written statement is made by the authorities in the
importing country that no preference has been or will be
granted;

(b) the products used in the manufacture would have been
entitled to drawback or remission of duties under the
provisions in force if a proof of origin had not been
used to claim preference; and

(c)

the period allowed for repayment has not been exceeded
and the conditions laid down in the internal legislation of
the country concerned governing repayment are met.

Article 16 — Documentary evidence for used goods

Evidences of origin may be issued also for used or any other
goods where, because of a considerable time lapse between the
date of production on the one hand and the date of expor-
tation on the other hand, the usual supporting documents are
no longer available, provided that:

(a) the date of production or importation of the goods lies
beyond that period of time during which, according to
the respective legislation in the country of exportation,
records must be kept by traders;

(b) the goods can be deemed to be originating on the grounds
of other evidences, like declarations of the producer or any
other trader, an expert's opinion, by marks on the goods or
descriptions of them, etc.; and

(c)

there is no indication that the goods do not comply with
the requirements of the origin rules.

Article 16 and 23 — Submission of proof of origin in case
of electronic transmission of the import declaration

customs

authorities of

In cases where import declarations are transmitted elec-
importing
tronically to the
country,
it rests with these authorities to decide, within the
framework and according to the provisions of the customs
legislation applicable in the importing country, when and to
what extent the documents constituting evidence of originating
status shall actually be submitted.

the

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Official Journal of the European Union

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Article 16 — Description of goods on movement
certificate EUR.1

Cases of large consignments or generic description of goods

When the box, on the movement certificate EUR.1, provided
for the description of the goods is insufficient to permit spec-
ification of the necessary particulars for identifying the goods,
particularly in the case of large consignments, the exporter may
specify the goods to which the certificate relates on attached
invoices of the goods and, if necessary, additional commercial
documents on condition that:

(a) the invoices numbers are shown in Box 10 of

the

movement certificate EUR.1,

(b) the invoices and, where relevant, additional commercial
documents are firmly attached to the certificate prior to
presentation to customs or competent governmental auth-
orities of the exporting country,

and

(c) the customs or competent governmental authorities have
stamped the invoice and additional commercial documents,
officially attaching them to the certificates.

Article 16 — Goods exported by a customs clearance
agent

A customs clearance agent may be allowed to act as the auth-
orised representative of the person who is the owner of the
goods or has a similar right of disposal over them, even in
cases where the person is not situated in the exporting country,
as long as the agent is in a position to prove the originating
status of the goods.

Article 16 — Documents accompanying a movement
certificate EUR.1

An invoice relating to goods exported under preference from
the Parties and accompanying a
the territory of one of
movement certificate EUR.1 can be made out
in a third
country.

Article 16 — Terms and abbreviations used for countries,
group of countries or territories in a movement certificate
EUR.1

Goods originating in the Community may be indicated in Box
4 of the certificate (1) as originating in:

— the Community, or

Accordingly, Chile may be indicated as the country of origin
also by using its official abbreviations, CL (Iso-Alpha-2) and
CHL (Iso-Alpha-3) (1).

Article 17 — Technical reasons

A movement certificate EUR.1 may be rejected for ‘technical
reasons’ because it was not made out in the prescribed manner.
These are the cases which may give rise to subsequent presen-
tation of a retrospectively-endorsed certificate and they include,
by way of example, the following:

— the movement certificate EUR.1 has been made out on a
form other than the prescribed one (e.g. no guilloche back-
in size or
ground, differs significantly from the model
colour, no serial number, not printed in one of
the
officially-prescribed languages),

— one of the mandatory boxes (e.g. Box 4 on the EUR.1) has

not been filled in, except for box 8,

— Tariff classification of the good at least at a heading (4

digits code) level (2) is not included in Box 8,

— the movement certificate EUR.1 has not been stamped and

signed (i.e. in Box 11),

— the movement certificate EUR.1 is endorsed by a non-auth-

orised authority,

— the stamp used is a new one which has not yet been

notified,

— the movement certificate EUR.1 presented is a copy or

photocopy rather than the original,

— the entry in Box 5 refers to a country that does not belong

to the Agreement (e.g. Israel or Cuba).

Action to be taken

The document should be marked ‘DOCUMENT NOT ACCEPTED’,
stating the reason(s), and then returned to the importer in
order to enable him to get a new document issued retro-
spectively. The customs authorities, however, may keep a
photocopy of the rejected document for the purposes of post-
clearance verification or if they have grounds for suspecting
fraud.

Article 20 — Practical application of the provisions
concerning invoice declaration

— both a Member State and the Community.

The following guidelines shall apply:

Any other term referring unequivocally to the Community may
also be used such as, inter alia, the European Community, the
European Union or an abbreviated form like for example EC,
EU, etc. (including the equivalent translations in the languages
in which the Agreement is drawn up).

(a) the indication of non-originating products and therefore
products which are not covered by the invoice declaration
should not be made on the declaration itself. However, this
indication should appear on the invoice in a precise way so
as to avoid any misunderstandings;

(1) Identical terms and abbreviations may be legitimately used in Box 2

(2) Accordingly, the proof of origin may legitimately contain a more

of the movement certificate EUR.1.

specific tariff classification of the good.

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Official Journal of the European Union

31.12.2003

(b) declarations made on photocopied invoices are acceptable
the
the original.
to sign
required to sign invoice

provided such declarations bear
exporter under
Approved exporters who are authorised not
invoice declarations are not
declarations made on photocopied invoices;

the same conditions as

the signature of

(c) an invoice declaration on the reverse of the invoice is

acceptable;

(d) the invoice declaration may be made on a separate sheet of
the invoice provided that the sheet may be considered as
part of the invoice. A complementary form may not be
used;

(e) an invoice declaration made out on a label which is
subsequently
acceptable
to the
provided there is no doubt that the label has been affixed
by the exporter. For example,
the exporter's stamp or
signature should cover both the label and the invoice.

attached

invoice

is

Article 20 — Value basis for the issue and acceptance of
invoice declarations made out by any exporter

The ex-works price may be used as the value basis for deciding
when an invoice declaration can be used instead of a
movement certificate EUR.1 in reference to the value limit
laid down in Article 20(1)(b). If the ex-works price is used as
the value basis, the importing country shall accept invoice
declarations made out by reference to that.

In cases where there is no ex-works price owing to the fact that
the consignment is supplied free of charge, the customs value
established by the authorities of the country of importation
shall be considered as the basis for the value limit.

Article 21 — Approved exporter

The term ‘exporter’ may refer to persons or undertakings,
regardless of whether they are producers or traders, as long
as they comply with all the other provisions of Annex III.
Customs clearance agents may not be granted approved
exporter status within the meaning of Annex III.

The status of approved exporter may be granted only after an
exporter has submitted a written application. When examining
this,
the customs or competent governmental authorities
should give particular consideration to the following points:

the undertaking's stock accounts allow identification of
the origin of goods and, in the case of new undertakings,
that the system they have installed will permit such identi-
fication. For operators who are traders only, examination
should focus more specifically on their usual trade flows;

— whether,

in the light of his past exporting record,

the
exporter offers sufficient guarantees concerning the orig-
inating status of the goods and the ability to meet all
resulting obligations.

Once an authorisation has been issued, exporters must:

— undertake to issue invoice declarations only for goods for
the necessary proof or accounting

which they hold all
elements at the time of issue;

— assume full responsibility for the way the authorisation is
used, particularly for incorrect origin statements or other
misuse of the authorisation;

— assume responsibility for ensuring the person in the under-
taking responsible for completing invoice declarations
knows and understands the rules of origin;

— undertake to keep all documentary proofs of origin for a
the

three years from the date that

period of at
declaration was made;

least

— undertake to produce proof of origin to the customs or
competent governmental authorities at any time, and
allow inspections by those authorities at any time.

The customs or competent governmental authorities must
carry out
regular controls on authorised exporters. These
controls must ensure the continued compliance of the use of
intervals
the
if possible, on the basis of risk analysis criteria.
determined,

authorisation and may be

carried out at

The customs or competent governmental authorities must
notify the Commission of the European Communities of the
national numbering system used for designating authorised
exporters. The Commission of
the European Communities
will then pass on the information to the customs authorities
of the other countries.

— whether the exporter exports regularly: here, rather than
focusing on a given number of consignments or a
particular sum, the customs or competent governmental
authorities should look into how regularly the operator
carries out such operations;

Article 24 — Importation by instalments

An importer wishing to take advantage of the provisions of
this article must inform the exporter before the first instalment
is exported that a single proof of origin for the complete
product is required.

— whether the exporter is at all times in a position to supply
evidence of origin for the goods to be exported. In this
connection it
the
rules of origin and is in
exporter knows the current
possession of all
In the
the authorities must make sure that
case of producers,

is necessary to consider whether

the documents proving origin.

In the event of each instalment being made up only of orig-
inating products and such instalments being accompanied by
proofs of origin,
those separate proofs of origin shall be
accepted by the customs authorities of the importing country
for the instalments concerned,
instead of a single proof of
origin issued for the complete product.

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Official Journal of the European Union

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Article 31 — Refusal of preferential treatment without
verification

This covers cases in which the proof of origin is considered
inapplicable, inter alia, for the following reasons:

— Box 4 on the movement certificate EUR.1 names a country
not party to the agreement under which preferential
treatment is being sought.

Action to be taken

— the goods description box (Box 8 on EUR.1) is not filled in

or refers to goods other than those presented;

— the proof of origin has been issued by a country which
does not belong to the Agreement even if
the goods
originate in the Community or in Chile (e.g. EUR.1 issued
in Israel for products originating in Chile);

— one of the mandatory boxes on the movement certificate
EUR.1 bears
traces of non-authenticated erasures or
alterations (e.g. the boxes describing the goods or stating
the number of packages, the country of destination or the
country of origin);

— the time-limit on the movement certificate EUR.1 has
expired for reasons other than those covered by the regu-
lations (e.g. exceptional circumstances), except where the
goods were presented before expiry of the time-limit;

— the proof of origin is produced subsequently for goods that

were initially imported fraudulently;

the

customs

authorities

The proof of origin should be marked ‘INAPPLICABLE’ and
retained by
to which it was
presented in order to prevent any further attempt to use it.
initiated according to
Without prejudice to legal actions
legislation, the customs authorities of the importing
internal
inform, where it is appropriate to do so, the
country shall
customs or
the
competent governmental
country of exportation about the refusal without delay.

authorities of

Article 31 — Time-limits for the verification of evidences
of origin

No country shall be obliged to answer a request for subsequent
verification, as provided for in Article 31, received more than
three years after the date of issue of a movement certificate
EUR.1 or the date of making out an invoice declaration.

Appendix I — Introductory note 6.1

The special rule for textile materials excludes linings and inter-
linings. The ‘pocketing fabric’ is a special woven fabric that is
the production of pockets and can
exclusively used for
lining or interlining.
therefore not be considered as normal
The special rule applies therefore to ‘pocketing fabric’
(for
trousers). The rule applies to woven fabrics in the piece as
well as to finished pockets originating in third countries.

Articles 17 and 31

DA

AFVIST DOKUMENT

UANVENDELIGT

DE

EL

EN

ES

FI

FR

IT

NL

PT

SV

DOKUMENT NICHT ANGENOMMEN

NICHT ANWENDBAR

ΑΠΟΡΡΙΠΤΕΤΑΙ

ΜΗ ΑΠΟ∆ΕΚΤΟ

DOCUMENT NOT ACCEPTED

INAPPLICABLE

DOCUMENTO RECHAZADO

INAPLICABLE

ASIAKIRJA HYLÄTTY

EI VOIDA KÄYTTÄÄ

DOCUMENT REFUSÉ

DOCUMENTO RESPINTO

INAPPLICABLE

INAPPLICABILE

DOCUMENT GEWEIGERD

NIET VAN TOEPASSING

DOCUMENTO RECUSADO

NÃO APLICÁVEL

EJ GODTAGET DOKUMENT

OANVÄNDBART