EFTA Chile relations

Transcription

1 EFTA-seminar Presentation by Ms. Cecilie G. Alnæs Directorate of Customs & Excise, Norway EFTA Chile relations 27 September 1999 First exploratory exchange of information with Chile in Geneva 4 December 2000 First round of negotiations on the EFTA-Chile FTA in Geneva 7-11 May 2001 Second round of negotiations on the EFTA-Chile FTA in Santiago 3-7 September 2001 Third round of negotiations on the EFTA-Chile FTA in Geneva October 2001 Fourth round of negotiations on the EFTA-Chile FTA in Santiago 2-6 September 2002 Fifth round of negotiations on the EFTA-Chile FTA in Geneva March 2003 Sixth round of negotiations and initialling of FTA in Geneva 26 June 2003 Free trade agreement signed in Kristiansand, Norway 1 December 2004 Free trade agreement enters in force 31 January 2006 First meeting of the Joint EFTA-Chile Committee in Geneva 7 8 April 2008 Second meeting of the Joint EFTA-Chile Committee in Santiago 1

2 Free Trade Models Customs union Common foreign trade policy Free Trade Agreement No common foreign trade policy Common customs tariff No common customs tariff Free circulation of goods No origin rules internally Free circulation of originating goods only Clearly defined origin rules Customs issues in Free Trade Agreements (FTAs) Trade in goods (industrial goods including fish and other marine products) Tariff dismantling Rules of origin Verification/enforcement procedures 2

3 Trade in goods Coverage on trade in goods: Industrial products HS Chapters Fish - HS Chapter 3 + parts of Chapters 15 and 16 Processed agricultural products Basic agricultural products Preferential treatment of industrial products Importation into the EFTA states: Free trade from the entry into force of the Agreement Importation into Chile: Free trade from the entry into force of the Agreement, except for some products with tariff dismantling and some processed agricultural products (Annex IV) 3

4 Tariff dismantling (Annex VI) On the date of entry into force of this agreement to 80 % of the basic duty, One year after the entry into force to 60 % of the basic duty, Two years after the entry into force to 40 % of the basic duty, Three years after the entry into force to 20 % of the basic duty, Four years after the entry into force the remaining duties shall be abolished This dismantling table is for products listed under the category 4 years for products listed under the category 6 years there is another dismantling table Preferential treatment of fish / marine products Importation into the EFTA states: Free trade from the entry into force of the Agreement (some exceptions) Importation into Chile: Free trade from the entry into force of the Agreement 4

5 RULES OF ORIGIN What is the purpose of rules of origin? Why do we need rules of origin? Marking requirements (eg. Made in Norway ) Statistical purposes (for measuring trade volumes) Import restrictions or prohibitions (eg. import ban) Antidumping/Countervailing duties/safeguard measures Preferential tariff treatment on importation (according to the Free Trade Agreement) EFTA Rules of Origin (Annex I to the FTA) Origin criteria Accumulation system Proofs of origin Direct transport Import requirements 5

6 RULES OF ORIGIN The rules of origin: determine the criteria on how a product must be manufactured in order to obtain status as an originating product being eligible for preferential tariff treatment regulate the quantities of non-originating materials that may be used in the production and/or how such materials must be worked or processed in order to obtain preferential status for the final product Rules of origin Annex I Where do we find the rules of origin? Definitions Concept of originating products Territorial Requirements Drawback or exemption Proof of origin Arrangements for Administrative co-operation Final provisions 6

7 Rules of origin Appendix 1 - Introductory Notes to the List (in Appendix 2) Appendix 2 - List of working and processing Appendix 3 - Movement Certificate EUR.1 Appendix 4 - Invoice Declaration Origin Criteria Main principles 1) Autonomous origin (Articles 2,4,5) Wholly obtained products Sufficiently worked or processed products 2) Origin by means of accumulation (article 3) 7

8 Origin criteria Wholly obtained products (Article 4) The following products are considered to be wholly obtained in a Party: mineral products extracted from their soil or seabed vegetable products harvested there live animals born and raised there products from live animals raised there products from hunting, trapping or fishing in inland waters conducted there Origin criteria (cont.) wholly obtained products of sea fishing and other products taken from the sea or the exclusive economic zone of an EFTA state or of Chile products of sea fishing and other products taken from the sea outside the exclusive economic zone by a vessel flying the flag of an EFTA state or of Chile fish and other marine products manufactured onboard a factory ship flying the flag of an EFTA state or of Chile, exclusive from products referred to in sub-paragraphs (f) and (g) used articles collected there, fit only for the recovery of raw materials or for use as waste waste and scrap resulting from manufacturing operations conducted there products extracted from the seabed or beneath the seabed outside their territorial sea, provided that they have sole rights to exploit such seabed and goods manufactured there exclusively from products specified in sub-paragraph (a) to (k) 8

9 Origin criteria Sufficiently worked or processed products (Article 5) Conditions in the List (Appendix 2) General tolerance rule of 10 % (except for textile products in HS Chapters 50 63) Insufficient working or processing minimal operations (Article 6) Commodity Code - 8 digits Heading The first 6 digits are incorperated in the HS Subheading Duty Statistical (Pizza containing sausage, meat of edible meat offals) 9

10 NORWEGIAN CUSTOMS TARIFF EXAMPLE - ex. Heading HS Heading HS subheadings unchanged HS = HS Subheading with national breakdown on 8. digit HS = HS Subheading with national breakdown on both 7. and 8. digit Origin criteria - Processing Rules in Appendix 2 HS Classification Product Description Applicable Rule ex 10

11 Origin criteria Export product from Chile: Fruit juices HS Fruit from Chile - HS Box from Argentina - HS Fruit juice Sugar etc. from Brazil Rule HS Manufacture from materials of any other heading and the value of any materials of chapter 17 does not exceed 30% of the exworks price of the product Origin criteria Export product: Carpet knitted - HS Wool HS from Peru Natural Brazilian Dye (Colour) HS Rule: Manufacture from natural fibres 11

12 Origin criteria Export product from Chile: Table HS Rule: Manufacture from materials of any other heading. Wood, Colombia HS Varnish, Peru HS Glue, Bolivia HS Origin criteria Export product from Chile: Smoking pipe Origin rule: Rule: Manufacture from roughly shaped blocks 12

13 Origin criteria Export product from Chile: Women s clothing, woven HS Rule 62.04: Manufacture from any other Chapter, provided that the value of the non-originating fabric used does not exceed 50% of the ex-works price of the product Origin criteria Combined Rule Origin rule: Beverages HS Change of tariff heading, and - provided that the value of all the materials from chapter 17does not exceed 50% of ex-works price of the product - any fruit-juices used ( some exceptions) must be originating 13

14 Origin criteria General Tolerance Rule (Article 5 2a of Annex I - exception to 1) - Allows input of materials from third countries if: value of input material is less than 10% of ex-works price of the final product textile products (Chapters 50 63) are excluded from this tolerance rule Origin Criteria Origin by means of accumulation (Article 3) Bilateral accumulation - Norway Chile Norway Normally within one agreement 14

15 Accumulation Free use" of originating materials The "originating materials" used do not need to fulfil a change of heading condition nor any other requirements laid down in the list of processing rules Such originating materials are considered to be materials of the Party concerned, provided that the materials are subject to working or processing going beyond the "minimal operations" as referred to in article 6 Drawback Rule Drawback: Exemption or repayment of customs duties paid for imported materials used in the manufacture of a product to be exported According to Article 14 of Annex I; drawback is, as a main rule, not allowed when issuing an evidence of origin for the export product However in the EFTA-Chile agreement drawback is allowed for 5 years after entry into force of the Agreement (until 1. December 2009) 15

16 Principle of territoriality Originating status must be fulfilled in a Party without interruption (Article 11 1) Exception: o Originating products returned from third countries Direct Transport (Article 12) Transport through third countries provided that they do not undergo operations other than: unloading, reloading, splitting-up of consignments operations to preserve the product in good condition remaining under customs surveillance 16

17 Import requirements Customs clearance according to domestic requirements of the importing party Presentation of proof of origin according to domestic laws and regulations Preferential tariff treatment according to the FTA Possible control and verification of proof of origin PROOFS OF ORIGIN Movement Certificate EUR.1 normally endorsed (stamped) by the Customs authorities Invoice Declaration (made out by the exporter) However with a value limit, unless being an approved exporter. 17

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19 Text of invoice declaration Appendix 4 to Annex I The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced. Spanish version El exportador de los productos incluidos en el presente documento (autorización aduanera n... (2) ) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial...(3). Text of invoice declaration 1 When the invoice declaration is made out by an approved exporter, the authorization number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank. 2 Origin of products to be indicated....3 (Place and date)...4 (Signature of the exporter; in addition the name of the person signing the declaration has to be indicated in clear script 3 These indications may be omitted if the information is contained on the document itself. 4 In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory. 19

20 Enforcement and mutual assistance The Customs authorities of the Parties will, if necessary, check if the goods are entitled to preferential tariff treatment upon importation The Customs authorities of the Parties will examine the proofs of origin at the time of exportation, and the Movement Certificate EUR.1 must be endorsed/stamped by Customs authorities The Customs authorities of the Parties assist each other in checking whether the proofs of origin are correctly issued and whether the products concerned really are originating products Responsibilities of the exporter of an evidence of origin The exporter of an evidence of origin shall: make the necessary indications / information and prove that these indications are correct. keep for at least three years all documents proving the originating status of the exported products 20

21 Rights of the customs authority of the exporting country The customs authority has at any time the right to: ask for information inspect exporters accounts, commercial papers, documents and the manufacturing process verify the accuracy of the evidences of origin at any time and without prior announcement General Procedure Customs Administration (CA) of the importing country sends a request for verification to the CA of the exporting country CA of the exporting country check at the exporter's site, and send a response to the CA of the importing country CA of the importing country undertakes the further steps 21

22 Some practical examples Here is 2 examples that we will look at. We will use some minutes on each of them, and then we will solve them together. 22

23 Export product from Chile: Tuna fish in olive oil HS ex-work price CLP Rule16.04: Manufacture in which all the materials used are classified within a heading other than that of the product Materials used: Origin: HS: Value: Frozen tuna Chile Olive oil Italy Salt Peru Pepper India Will the product obtain originating status? Export product from Chile: Leather briefcase Rule HS 42.02: Manufactured from materials of any other heading Materials used: Origin: HS: Tanned and worked bovine leather Chile Lining, synthetic fabric Malaysia Buckles Singapore Rivets of copper Chile Zipper China Other materials Indonesia various (not 42.02) Will the product obtain originating status? 23