CHAPTER 4
CUSTOMS
ARTICLE 4.1: SCOPE
This Chapter shall apply, in accordance with the Parties’ respective national laws, rules and
regulations, to customs procedures required for clearance of goods traded between the Parties.
ARTICLE 4.2: TRANSPARENCY
1. The Parties shall promptly publish or otherwise make publicly available their laws, regulations,
administrative procedures and administrative rulings of general application on respective customs matters that
pertain to or affect the operation of this Chapter, so as to enable interested persons and parties to become
acquainted with them.
2. Nothing in this Article or in any part of this Chapter shall require any Party to publish law enforcement
procedures and internal operational guidelines including those related to conducting risk analysis and targeting
methodologies.
ARTICLE 4.3: RISK MANAGEMENT
1. A Party shall adopt the risk management approach in its customs activities based on its identified risk
of goods in order to facilitate the clearance of low risk consignments, while focusing its inspection activities
on high-risk goods. Accordingly, each Party undertakes that customs compliance activities at the time of entry
shall not normally exceed 5 per cent of total customs transactions.
2. The Parties shall apply and further develop risk management techniques in the performance of their
customs compliance activities.
3. The Parties shall exchange information on risk management techniques in the performance of their
customs procedures.
ARTICLE 4.4: PAPERLESS TRADING
1. Recognising that trading using electronic filing and transfer of trade-related information and electronic
versions of documents, as an alternative to paper-based methods will significantly enhance the efficiency of
trade through reduction of cost and time, the Parties shall co-operate with a view to realising and promoting
paperless trading between their respective customs administrations and its respective trading community.
2. The Parties shall exchange views and information on realizing, promoting and developments in
paperless trading.
ARTICLE 4.5: DENIAL OF PREFERENTIAL TARIFF TREATMENT
1. The importing Party may deny preferential tariff treatment to a good for which an importer in its
territory claims preferential tariff treatment where the good does not meet the requirements of Chapter 3 or
where the importer fails to comply with any of the relevant requirements of Chapter 3.
2. Where the denial of preferential treatment is due to the signature that appears in the Certificate of
Origin, the Importing Party may accept a clarification letter from the exporting Party confirming the
authenticity of Certificate of Origin. Such clarification letter may be issued directly from the exporting Party
to the importing Party or through the exporter of the good.
3. Export of consignments accompanied by an authentic Certificate of Origin will not be subjected to any
detention or delays by the Customs Authorities of the importing country.
4. In case of reasonable doubt about the authenticity of a Certificate of Origin, the Customs Authority of
the importing country may seek a clarification from the certifying agency of the exporting country which will
furnish the same within a period of 30 days. Meanwhile, the subject consignment will be allowed entry into
the importing country on a provisional basis against a bond or a guarantee i.e. a legally binding undertaking as
may be required. After examining the information so provided by the certifying authority, the Customs
Authority in the importing country would take appropriate action to finalise the provisional assessment.
5. Where the clarification carried on in paragraph 4 is not conclusive, the importing Party may, upon
informing the exporting Party and with the knowledge of the importer concerned and with the consent of the
exporter or manufacturer concerned, visit the exporter or manufacturer concerned for the purpose of verifying
the preference claim. If no consent is given by the exporter or manufacturer concerned within a period of 45
days, the importing party may disallow the tariff preference for the particular Certificate of Origin.
ARTICLE 4.6: VERIFICATION OF CERTIFICATES OF ORIGIN
1. The Parties shall co-operate with each other to verify the authenticity and the correctness of the
information given in the certificates of origin.
2. For the purpose of implementing the provisions of paragraph 1, the customs administration of the
importing Party shall return the certificate of origin, or a copy of the document, to the customs authority of the
exporting Party, giving the reason for the enquiry. Any document and/or information obtained suggesting that
the information given on the certificate of origin is incorrect shall be forwarded in support of the request for
verification.
3. The verification shall be carried out by the customs authorities of the exporting Party.
ARTICLE 4.7: ADVANCE RULINGS
The Parties shall apply Advance Rulings in accordance with the provisions of Article 3.13.
ARTICLE 4.8: SHARING OF BEST PRACTICES
1. The Customs Administrations of both Parties shall endeavor to use their best efforts to provide each
other technical advice for the purpose of improving risk assessment techniques, simplifying and expediting
customs procedures and enhancing customs clearance.
2. The Customs Administrations of both Parties shall endeavor, within their respective available
resources, to actively encourage exchange of information on best practices on customs procedures and
techniques with the aim of enhancing each other's capacity.
ARTICLE 4.9: CONFIDENTIALITY
Nothing in this Chapter shall require a Party to provide or allow access to information:
(a) the disclosure of which would impede law enforcement or otherwise be contrary to the public
interest; or
(b) the disclosure of which would prejudice the legitimate commercial interest of a particular
enterprise, public or private.
