Chapter Five-- Customs Administration and Trade Facilitation

Chapter Five Customs Administration and Trade Facilitation

Article 5.1:  Publication

 

1.  Each Party shall publish, including on the Internet, its customs laws, regulations, and

general administrative procedures.

 

2.  Each Party shall designate or maintain one or more inquiry points to address inquiries by

interested persons concerning customs matters and shall make available on the Internet

information concerning the procedures for making such inquiries.

 

3. To the extent possible, each Party shall publish in advance any regulations of general

application governing customs matters that it proposes to adopt and provide interested persons

the opportunity to comment prior to their adoption.  

 

Article 5.2:  Release of Goods

 

1. Each Party shall adopt or maintain simplified customs procedures for the efficient release

of goods in order to facilitate trade between the Parties.

 

2. Pursuant to paragraph 1, each Party shall ensure that its customs authority or other

competent authority shall adopt or maintain procedures that:

 

(a) provide for the release of goods within a period no greater than that required to

ensure compliance with its customs laws and, to the extent possible, within 48

hours of arrival;

 

(b) allow goods to be released at the point of arrival, without temporary transfer to

warehouses or other facilities; and

 

(c) allow importers to withdraw goods from customs before and without prejudice to

the final determination by its customs authority of the applicable customs duties,

taxes, and fees.1

 

                                                

1

  A Party may require an importer to provide sufficient guarantee in the form of a surety, a deposit, or some other

appropriate instrument, covering the ultimate payment of the customs duties, taxes, and fees in connection with the

importation of the good. 

 

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Article 5.3:  Automation

 

Each Party’s customs authority shall endeavor to use information technology that

expedites procedures for the release of goods.  When deciding on the information technology to

be used for this purpose, each Party shall:

 

(a) use, to the extent possible, international standards;

 

(b) make electronic systems accessible to the trading community;

 

(c) provide for electronic submission and processing of information and data before

arrival of the shipment to allow for the release of goods on arrival;

 

(d)  employ electronic or automated systems for risk analysis and targeting;

 

(e)  work towards developing compatible electronic systems among the Parties’

customs authorities, to facilitate government to government exchange of

international trade data; and

 

(f) work towards developing a set of common data elements and processes in

accordance with World Customs Organization (WCO) Customs Data Model and

related WCO recommendations and guidelines.

 

Article 5.4:  Risk Management

 

Each Party shall endeavor to adopt or maintain risk management systems that enable its

customs authority to focus its inspection activities on high-risk goods and that simplify the

clearance and movement of low-risk goods, while respecting the confidential nature of the

information it obtains through such activities.

 

Article 5.5:  Cooperation

 

1. With a view to facilitating the effective operation of this Agreement, each Party shall

endeavor to provide the other Parties with advance notice of any significant modification of

administrative policy or other similar development related to its laws or regulations governing

importations that is likely to substantially affect the operation of this Agreement.

 

2. The Parties shall cooperate in achieving compliance with their respective laws and

regulations pertaining to:

 

(a) the implementation and operation of the provisions of this Agreement governing

importations or exportations, including claims of origin and origin procedures; 

 

(b) the implementation and operation of the Customs Valuation Agreement; 

 

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(c) restrictions or prohibitions on imports or exports; and 

 

(d) other customs matters as the Parties may agree.  

 

3. Where a Party has a reasonable suspicion of unlawful activity related to its laws or

regulations governing importations, the Party may request another Party to provide specific

confidential information normally collected in connection with the importation of goods. 

 

4. For purposes of paragraph 3, “a reasonable suspicion of unlawful activity” means a

suspicion based on relevant factual information obtained from public or private sources,

comprising one or more of the following:

 

(a) historical evidence of non-compliance with laws or regulations governing

importations by an importer or exporter;

 

(b) historical evidence of non-compliance with laws or regulations governing

importations by a manufacturer, producer, or other person involved in the

movement of goods from the territory of one Party to the territory of another

Party;

 

(c) historical evidence that some or all of the persons involved in the movement from

the territory of the other Party to the territory of another Party of goods within a

specific product sector have not complied with a Party’s laws or regulations

governing importations; or

 

(d) other information that the requesting Party and the Party from whom the

information is requested agree is sufficient in the context of a particular request.

 

5. A Party’s request under paragraph 3 shall be in writing, shall specify the purpose for

which the information is sought, and shall identify the requested information with sufficient

specificity for the other Party to locate and provide the information. 

 

6. The Party from whom the information is requested shall, in accordance with its law and

any relevant international agreements to which it is a party, provide a written response

containing such information.

 

7. Each Party shall endeavor to provide another Party with any other information that would

assist that Party in determining whether imports from or exports to that Party are in compliance

with the other Party’s laws or regulations governing importations, in particular those related to

the prevention of smuggling and similar infractions.

 

8.  For purposes of facilitating regional trade, each Party shall endeavor to provide the other

Parties with technical advice and assistance for the purpose of improving risk assessment

 

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techniques, simplifying and expediting customs procedures, advancing the technical skill of

personnel, and enhancing the use of technologies that can lead to improved compliance with

regard to laws or regulations governing importations.

 

9. Building on the mechanisms established in this Article, the Parties shall strive to explore

additional avenues of cooperation to enhance each Party’s ability to enforce its laws and

regulations governing importations, including by concluding a mutual assistance agreement

between their respective customs authorities within six months after this Agreement is signed. 

The Parties shall examine whether to establish other channels of communication to facilitate the

secure and rapid exchange of information and to improve coordination on importation issues.

 

Article 5.6:  Confidentiality

 

1. Where a Party providing information to another Party in accordance with this Chapter

designates the information as confidential, the other Party shall maintain the confidentiality of

the information.  The Party providing the information may require written assurances from the

other Party that the information will be held in confidence, will be used only for the purposes

specified in the other Party’s request for information, and will not be disclosed without the

Party’s specific permission.

 

2.  A Party may decline to provide information requested by another Party where that Party

has failed to act in conformity with assurances provided under paragraph 1. 

 

3. Each Party shall adopt or maintain procedures in which confidential information,

including information the disclosure of which could prejudice the competitive position of the

person providing the information, submitted in accordance with the administration of the Party’s

customs laws, shall be protected from unauthorized disclosure.

 

Article 5.7:  Express Shipments

 

 Each Party shall adopt or maintain expedited customs procedures for express shipments

while maintaining appropriate customs control and selection.  These procedures shall:

(a) provide a separate, expedited customs procedure for express shipments;

 

(b) provide for the submission and processing of information necessary for the

release of an express shipment before the express shipment arrives;

 

(c) allow submission of a single manifest covering all goods contained in a shipment

transported by an express shipment service, through, if possible, electronic means;  

 

(d) to the extent possible, provide for clearance of certain goods with a minimum of

documentation; and

 

 

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(e) under normal circumstances, provide for clearance of express shipments within

six hours after submission of the necessary customs documents, provided the

shipment has arrived.  

 

Article 5.8:  Review and Appeal

 

Each Party shall ensure that with respect to its determinations on customs matters,

importers in its territory have access to:

 

(a) a level of administrative review independent of the employee or office that issued

the determination; and

 

(b)  judicial review of the determination.

 

Article 5.9:  Penalties

 

Each Party shall adopt or maintain measures that allow for the imposition of civil or

administrative penalties and, where appropriate, criminal sanctions for violations of its customs

laws and regulations, including those governing tariff classification, customs valuation, country

of origin, and claims for preferential treatment under this Agreement.

 

Article 5.10:  Advance Rulings

 

1. Each Party, through its customs authority or other competent authority shall issue, before

a good is imported into its territory, a written advance ruling at the written request of an importer

in its territory, or an exporter or producer2 in the territory of another Party with regard to:

 

(a) tariff classification;

 

(b) the application of customs valuation criteria for a particular case, in accordance

with the application of the provisions set out in the Customs Valuation

Agreement;

 

(c)  the application of duty drawback, deferral, or other relief from customs duties;  

 

(d) whether a good is originating in accordance with Chapter Four (Rules of Origin

and Origin Procedures);

 

(e) whether a good re-entered into the territory of a Party after being exported to the

territory of another Party for repair or alteration is eligible for duty free treatment

in accordance with Article 3.6 (Goods Re-entered after Repair or Alteration);

                                                

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  For greater certainty, an importer, exporter, or producer may submit a request for an advance ruling through a duly

authorized representative.

 

 

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(f) country of origin marking;

 

(g) the application of quotas; and

 

(h) such other matters as the Parties may agree.

 

2. Each Party shall provide that its customs authority or other competent authority shall

issue an advance ruling within 150 days after a request, provided that the requester has submitted

all information that the Party requires, including, if the authority requests, a sample of the good

for which the requester is seeking an advance ruling.  In issuing an advance ruling, the authority

shall take into account facts and circumstances the requester has provided.

 

3. Each Party shall provide that advance rulings shall be in force from their date of issuance,

or another date specified in the ruling, provided that the facts or circumstances on which the

ruling is based remain unchanged.  

 

4.  The issuing Party may modify or revoke an advance ruling after the Party notifies the

requester.  The issuing Party may modify or revoke a ruling retroactively only if the ruling was

based on inaccurate or false information.  

 

5. Subject to any confidentiality requirements in its law, each Party shall make its advance

rulings publicly available.  

 

6. If a requester provides false information or omits relevant facts or circumstances relating

to the advance ruling, or does not act in accordance with the ruling’s terms and conditions, the

importing Party may apply appropriate measures, including civil, criminal, and administrative

actions, monetary penalties, or other sanctions.

 

Article 5.11:  Implementation

 

For each Central American Party and the Dominican Republic: 

 

(a) Articles 5.2.2(b) and (c) and 5.7 shall apply one year after the date of entry into

force of this Agreement;

 

(b) Articles 5.1.1, 5.1.2, 5.4, and 5.10 shall apply two years after the date of entry into

force of this Agreement; and

 

(c) Article 5.3 shall apply three years after the date of entry into force of this

Agreement.

 

 

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Article 5.12:   Capacity Building

 

The Parties recognize the importance of trade capacity building activities in facilitating

the implementation of this Chapter.  Accordingly, the initial capacity building priorities of the

working group on customs administration and trade facilitation under the Committee on Trade

Capacity Building should be related to implementation of this Chapter and any other priorities

that the Committee designates.