Verifications |
---|
Provision which sets out a process for origin verification that an FTA party should follow if the customs authorities of that country have a reasonable doubt regarding the preferential origin of imported goods.
Origin verifications can be based on records checking (see retention period), additional information request or site visits.
As the origin verification is initiated by the customs authority of importing country and relates to the goods exported from and produced in the territory of another party, origin verification provisions often clarify the scope of cooperation between parties and mutual assistance throughout the process. It clarifies the process that should be followed if an FTA party has doubts about the origin of imported products and would like to request assistance in the verification process from the FTA party or directly from the exporter. The provision lists how the request needs to be made, the steps that need to be taken and the time limits for the process. Where the origin certification is made by the importer, the competent authority in the importing country will also direct the verification request directly to the importer.
This cooperation and the verification process can vary between agreements.
The provision can also refer to and rely on the local customs legislation and local processes for the verification of validity of import and export documentation.
Example:
During a customs audit of the importer, the local customs authorities determine that there are reasons to believe that the origin certificate issued in by the country of export was incorrect. The local customs authorities contact the competent authority in the country of export to request further information on the origin of the goods. All the information and supporting documentation relating to the import of the goods is passed to the competent authority of the exporting country which then starts the verification process and contacts the exporter. This takes form of a request for further information. However, as the customs authorities suspect that the information provided by the exporter for the purpose of obtaining a certificate of origin is incorrect they trigger an origin audit at the premises of the exporter. This involves an audit of the production process as well as various commercial and customs documentation. Within a certain period defined in the text of the FTA, the competent authority in the country of export determines that the certificate of origin was issued based on incorrect information and informs the authorities in the country of import. The authorities reject the preferential tariff claim and request the importer to repay the full rate of customs duty.
More Glossary |
---|