Retention period |
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Also known as recordkeeping.
This provision specifies who (exporter, producer who issued a supplier’s declaration, importer, issuing or accepting customs authority) needs to retain the proof of origin and for what period of time. The retention period can follow the domestic customs legislation or be set out in the text of the agreement.
Some agreements also list the supporting documentation that needs to be stored together with the proof of origin. This usually refers to standard customs documentation relating to the importation of the goods (see also supporting documentation). Some agreements also specify whether originals or hard/soft copies of the documents need to be kept. If such information is not specified in the agreement, local customs legislation should be followed.
All parties involved in preferential origin claims should be familiar with recordkeeping requirements under a given FTAs and the legally binding obligation to retain origin documentation. Customs authorities can request one of the involved parties to provide a proof of origin together with supporting documentation. Inability to do so within the retention period can lead to full tariffs becoming due and under some agreements also to penalties.
See also verifications.
Example:
A year after importing a product to an FTA country, the importer is going through a customs audit conducted by local customs authorities. The importer is asked to provide all supporting documentation relating to several imports including a couple under preferential tariff rates. The FTA and domestic legislation in the exporting country state that the documents need to kept for minimum of 3 years. The importer is required to provide all customs, commercial and shipping documentation relating to these imports as well as all proofs of origin. If the importer is not able to provide the documents, penalties may apply.
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