Laws of the People's Republic of China

No. 151

The Measures of the Customs of the People's Republic of China for the Administration of the Origin of Imported Goods under the Agreement on the Free Trade Area between People's Republic of China and Republic of Chile has been deliberated and adopted at the executive meeting of the General Administration of Customs on May 30, 2006. It is hereby promulgated and shall enter into force as of Oct. 1, 2006. Mou Xinsheng, Director-General of the General Administration of Customs

Aug. 30, 2006

Measures of the Customs of the People's Republic of China for the Administration of the Origin of Imported Goods under the Agreement on the Free Trade Area between People's Republic of China and Republic of Chile

Article 1

The present Measures is formulated for the purpose of correctly confirming the place of origin of the imported goods under the Free Trade Agreement by and between the Governments of People's Republic of China and Republic of Chile (hereinafter referred to as China-Chile FTA), and promoting the trade between China and Chile, and in accordance with the Customs Law of the People's Republic of China, the Regulation of the People's Republic of China on the Place of Origin of Import and Export Goods, rules of the place of origin under China-Chile FTA , as well as other relevant laws and regulations.

Article 2

The present Measures shall be applied to the goods imported from Chile under China-Chile FTA, however, the goods imported by way of processing trade and sold domestically shall be excluded.

Article 3

If the import goods directly transported from Chile comform to one of the following circumstances, the orgin shall be regarded as Chile, and China-Chile FTA tariff under Customs Tariff of Import and Export of the People's Republic of China (hereinafter referred to as Customs Tariff) shall be applicable:

(1)

products fully obtained or produced in Chile;

(2)

products produced in Chile or within territory of China and Chile all by using original materials consistent with the present Measures; or

(3)

Products produced in Chile or within territory of China and Chile by non-original materials, and are consistent with the special criteria of the place of origin of the product stipulated in Article 6 of the present Measures, or are consistent with Regional Value Content in Article 7 of the present Measures.

Article 4

"Direct Transportation" in Article 3 of the present Measures refers to the import goods under China-Chile FTA directly transported from Chile into China's territory, without passing through other countries or regions besides China and Chile (hereinafter referred to as "other countries and regions").

Import goods of Chile origin that pass through other countries and regions into China's territory, and are consistent with the followings at the same time shall be deemed as "Direct Transportation":

(1)

by the geographical reason or the requirement of transportation;

(2)

when such goods pass through other countries or regions, the goods have not been other processing operated except for loading, unloading or keeping the goods in good condition or transportation requirement; and

(3)

without trading or consuming in such countries or regions.

No matter whether to change the transportation tools of such goods, the time for staying in other countries or regions passed through shall be no longer than 3 months.

Article 5

The "products fully obtained or produced in Chile" as mentioned in Item (1) of Article 3 of the present Measures refers to:

(1)

mineral products exploited from the territory or seabed of Chile;

(2)

plants and their products harvested in Chile;

(3)

live animals borne and bred in Chile;

(4)

products obtained from live animals bred in Chile;

(5)

products obtained from hunting, trapping in Chile, or fishing in its inner waters;

(6)

fishing or other products obtained from territorial waters or exclusive economic zone of Chile, and by the ships hanging the flag of Chile only from waters in exclusive economic zone of Chile;

(7)

fish and other products obtained by the ships hanging the flag of Chile outside the waters of the exclusive economic zone of Chile;

(8)

products obtained from processing of the products only in Items (6) and (7) on the processing ships hanging the flag of that country;

(9)

waste materials collected in Chile that are only fit for recovery of raw materials;

(10)

discarded or waste materials produced from processing and only fit for recovery of raw materials;

(11)

products extracted from the seabed or seabed subsoil, outside the territorial waters of Chile, where Chile has exclusive developing right; and

(12)

products obtained from processing of the products above listed in Item (1) through (11).

Article 6

Where goods listed in Annex I of the present Measures and imported from Chile are consistent with the criterion of "change of chapter", "change of 4-digit tax code", and "Regional Value Content more than 50% ", the origin of goods is Chile.

The criterion of "change of chapter" refers to that the non-original materials used to produce or process goods in Chile are not those listed in the same chapter of such goods but in any other chapters of the Customs Tariff.

The criterion of "change of 4 digit tax code" refers to that the non-original materials used to produce or process goods in Chile are not those listed with the same 4-digit tax code of such goods but with any other tax codes of the Customs Tariff.

The criterion of "Regional Value Content more than 50% " refers to that goods produced or processed in Chile are not only consistent with the present Measures but the Regional Value Content calculated according to Article 8 is more than 50%.

Article 7

Regional Value Content of goods shall not be less than 40% except for those applying Article 5 and 6 of the present Measures.

Article 8

"Regional Value Content" shall be calculated according to the following way:

RVC = (Price of the Goods – Price of the Non-Original Materials) / Price of the Goods x 100%

"Price of the Goods" refers to price free on board of such goods. Whatever means of transportation, such price is the one at the final port of shipment or location.

"Price of Non-Original Materials" refers to the price of non-original materials the producer uses, including the import cost, insurance and carriage of shipping to the port or location of destination, but not the value of non-original materials used to produce original materials during the production. If the non-original materials are obtained by producer of the goods in the territory of Chile, the carriage, insurance, packing expenses and any other expenses incurred during the transportation of such materials from the supplier's storage to producer's plant are excluded.

The calculation of the RVC in the present Article shall be consistent with the general acknowledged accounting rules and the Customs Tariff.

Article 9

Goods or materials with China-origin used to produce other goods in the territory of Chile, and composing part of other goods, shall be deemed as Chile-origin.

Article 10

The following slight process or treatment shall not interfere the determination of the origins of goods:

(1)

process or treatment handled to preserve goods during transportation or storage;

(2)

removing and enwrapping the packing;

(3)

washing, cleaning, dust-cleaning, and wiping off oxide, oil, paint and other coats;

(4)

ironing or planishing the textile;

(5)

simple lacquering and burnishing;

(6)

removing chaff for corn and rice, and partly or fully blanching, polishing and glazing;

(7)

coloring sugar or making sugar process or treatment;

(8)

peeling, removing seed and shell of fruits, nuts and vegetables;

(9)

nibbing, simple rubbing or incision;

(10)

filtration, selection, classification, matching, including combining the whole set of goods;

(11)

simple bottling, canning, bagging, encasement, fixing to the cardboard or board, and any other simple packing process or treatment;

(12)

affixing or printing symbol, label, logo and other similar identified sign;

(13)

simple mixture of products, no matter whether they are in different kinds;

(14)

simple assembling from parts to a whole article, or simple dismantling products to parts;

(15)

process or treatment only for the convenience of shipping and unload at port;

(16)

the combination of two or more processes or treatments from Item (1) through (15); or

(17)

animal butchering.

Article 11

Where the "change of chapter" and "change of 4 digit tax code" are used to determine the origin of goods, although part of non-original materials used in the production do not meet such criterions, if the value affirmed according to Article 8 of the present Measures is less than 8% of value of such goods, the origin of such goods shall still be deemed as Chile.

Article 12

Where all the goods in the whole set of goods provisioned in General Rule III of the Customs Tariff are Chile origin, such whole set is Chile origin. Where part of goods are non-Chile origin, but their value determined according to Article 8 of the present Measures is less than 15% of value of such whole set, such whole set of goods shall still be deemed as originated from Chile.

Article 13

When determining the origin of goods, where the accessories, spare parts, or tools declared import together with such goods are consistent with both the followings, they do not interfere the determination of origin of goods:

(1)

the accessories, spare parts, or tools are classified together with the goods in the Customs of Tariff, and their invoices is not issued separately; and

(2)

the accessories, spare parts, or tools are all within the normal amount and value.

Article 14

When determining the origin of goods listed in Annex 1 of the present Measures that the "change of chapter" and "change of 4 digit tax code" are applicable, where the retail-used packing materials and containers and the goods packed are classified together, their origins do not interfere the determination of the origin of goods.

When the origin of RVC -applied goods is to be defined, the value of their retail-used packing materials and containers shall be calculated.

The origins of packing materials and containers used to protect the goods during the transportation do not interfere the determination of the origin of goods.

Article 15

When determining the origin of the goods, the following materials used in the goods production but themselves do not compose the substance components or parts of goods, and their origins shall not interfere the determination of origin of goods:

(1)

fuel, energy sources, activator and impregnant;

(2)

facility, equipment and article for goods test or inspection;

(3)

gloves, glasses, shoes, clothes, safety equipment and article;

(4)

tool, pattern and mold;

(5)

spare parts and materials for equipment maintenance and workshop construction;

(6)

lubricant, grease, chemical combination materials and other materials used in production or operation of equipment, and workshop construction; and

(7)

any other materials used in goods production that do not compose the component of such goods but reasonably show its participation in producing such goods.

Article 16

Where goods of Chile origin are sold to China after exhibition in other countries or regions, and are satisfied with all the following conditions, the China-Chile FTA tariff in Customs Tariff may be applied when import.

(1)

such goods have been sent to China during the exhibition or are to be sent after the exhibition in the same state as sending to the exhibition;

(2)

such goods are used for no other purposes except for display in the exhibition after sending to the exhibition; and

(3)

such goods are under supervision of the customs in the country or region where the exhibition is held during the exhibition.

The sales exhibition with a purpose of selling exotic products in stores or business sites is exclusive from the exhibition provisioned in the present Article.

Article 17

At the goods import declaration, consignee of the import goods shall positively submit the original copy of the Certificate of Origin (Format to be seen in Annex II) issued by the General Department of International Economic Relation, the Ministry of Foreign Affairs of Chile, fill out the Customs Declaration of Import Goods of the People's Republic of China (hereinafter referred to as Customs Declaration) according to the Customs' declaration provisions, and declare to apply China-Chile FTA tariff.

The Certificate of Chile Origin consignee of the import goods submitted to the customs must be consistent to the format listed in Annex II of the present Measures. The language used shall be English, and the "ORIFINAL" seal shall be covered.

The one or several items of goods listed in the Certificate of Origin shall be goods of Chile origin imported to China as the same batch. One Certificate of Origin shall only correspond to one Customs Declaration.

Article 18

When consignee of the import goods declares to apply China-Chile FTA tariff, the following documents shall be submitted to the customs:

(1)

the Certificate of Origin issued before goods export or within 30 days after export;

(2)

bill of lading issued in the territory of Chile; and

(3)

the original commercial invoice of the import goods.

Where the original commercial invoice of the import goods issued by other countries or regions, the Certificate of Origin of such goods shall give clear indication of the name and address of Chile producer in "Remark" column. The consignee in such Certificate of Origin shall be the one in the territory of China.

Where goods are transported through other countries or regions into the territory of China, the consignee of the import goods shall also submit witness documents issued by the customs in such countries or regions as the customs required. Where goods are transported through Hong Kong or Macao into the inner ports, the consignee shall submit to the customs the Certificate of Origin marked with "No Additional Process Evidence" by China Inspection Company Limited, H.K. or China Inspection Company Limited, Macao.

Where the goods declared are for exhibition, the consignee of the import goods shall give clear indication of the name and location of the exhibition in the Certificate of Origin submitted, and at the same time submit to the customs relevant witness documents related to the exhibition.

Article 19

Certificate of Origin is valid in one year from the day when it is issued. The consignee of imported goods shall submit to the Customs the valid Certificate of Origin.

Article 20

When the goods declare import, the consignee of the import goods declare to apply China-Chile FTA tariff, but cannot provide the Certificate of Origin and relevant documents provisioned in the present Measures, or the Certificate of Origin and relevant documents provided are not consistent with the present Measures, the customs shall discharge the goods after collecting the deposit according to the relevant provision, handle the import procedures and customs statistics.

Replying to the consignee's application, the customs may return the deposit during the deposit collection term according to the following materials the consignee provided:

(1)

the Customs Declaration declares Chile origin;

(2)

the Certificate of Origin consistent with Article 17 in the present Measures; and

(3)

other documents relevant to the goods import required by the customs.

Within the deposit collection term, if the consignee of the import goods cannot provide the above materials, the customs shall immediately handle the procedure turning the deposit to import tariff.

Where the consignee of the import goods does not declare to apply China-Chile FTA tariff at goods import declaration, the customs may not apply such FTA tariff for imposing tax.

Article 21

Where the origin of goods is from Chile, and with a price less than USD 600, the goods shall be exempted from submitting the Certificate of Origin.

Where the goods are imported once or several times executed or arranged to evade Article 17 of the present Measures, the preceding paragraph shall not be applicable.

Article 22

Where the Customs have doubt on the authenticity of the Certificate of Chile Origin and whether the relevant goods are originally from Chile, the Customs may require Chile's relevant authority to check the place of origin.

In the check, the customs may collect deposit equivalent to the tariff according to other tariff rate the goods applied, then discharge the goods, and handle the import procedure and the customs statistics according to relevant provisions. After the check, the customs shall immediately return the deposit or turn the deposit to import tariff.

Within 6 months from the day on which the check is required, if the customs do not receive the check result from relevant authority in Chile, or the check result does not include information enough to determine the authenticity of the Certificate of Origin or the true origin of goods, the relevant goods do not apply the Preferential Tariff Treatment, and the customs shall immediately handle the procedure to turn the deposit to the import tariff. The customs statistics shall be amended correspondingly.

Where the import goods are restricted to import by the State, or are suspicious of violating the law, the customs shall not discharge the goods before finishing checking the Certificate of Origin.

Article 23

The customs shall keep confidential the trade secret obtained according to the present Measures. Without the agreement of the consignee, the customs may not reveal or use for other purposes, except for the provisions of laws, administrative regulations, and the relevant judicatory interpretation.

Article 24

Any action in violation of the present Measures, constituting smuggle or violation of the Customs supervision provision, shall be dealt with by the Customs in accordance with the Customs Law of the People's Republic of China and Customs Law of the People's Republic of China and the Regulation of the People's Republic of China on the Implementation of Customs Administrative Punishment; and if a crime is constituted, criminal responsibility shall be investigated in accordance with the law.

Article 25

For the purpose of the present Measures:

"Customs Evaluation Agreement" refers to the Agreement on Performing Article 7 of 1994 Tariff and Trade General Convention as part of the Malakas Agreement on World Trade Organization.

"Material" refers to the accessory, components, ingredient, semi-assembled stuff, etc. that actually is the components of another goods, or has been used in producing another goods.

"Non-original Material" refers to the material or goods that cannot be certain of China or Chile origin according to the present Measures.

"Production" refers to the way to obtain goods, including planting, breeding, exploitation, harvesting, catching, trapping, hunting, manufacture, processing, or assemblage, etc.

Article 26

The power to interpret the present Measures shall remain with the General Administration of Customs.

Article 27

The present Measures shall enter into force as of Oct. 1, 2006.

Annexes:

I．Product-Specific Rules

II．Certificate Of Origin Form

Annex I

Goods Special Origin Criteria

1. “Change of chapter” applies to:

Customs Tariff, Chapter 1-16, 22.

2. “Change of 4 digit tax code” applies to:

Customs Tariff, Chapter 17-19

3. “RVC is no less than 50%” applies to:

The following Chapters in Customs Tariff, and 4-digit or 6-digit tax code

Annex II

Certificate of Origin (Format)

ORIGINAL

Overleaf Instruction

Box 1:State the full legal name, address (including country) of the exporter.

Box 2: State the full legal name, address (including country) of the producer. If more than one producer's good is included in the certificate, list the additional producers, including name, address (including country). If the exporter or the producer wishes the information to be confidential, it is acceptable to state "Available to the competent governmental authority upon request". If the producer and the exporter are the same, please complete field with "SAME". If the producer is unknown, it is acceptable to state "UNKNOWN".

Box 3:State the full legal name, address (including country) of the consignee.

Box 4:Complete the means of transport and route and specify the departure date, transport vehicle No., port of loading and discharge.

Box 5:The customs authorities of the importing country must indicate (√ ) in the relevant boxes whether or not preferential tariff treatment is accorded.

Box 6:Customer's Order Number, Letter of Credit Number, and etc. may be included if required. If the invoice is issued by a non-Party operator, the name, address of the producer in the originating Party shall be stated herein.

Box 7:State the item number, and item number should not exceed 20.

Box 8:State the shipping marks and numbers on the packages.

Box 9:Number and kind of package shall be specified. Provide a full description of each good. The description should be sufficiently detailed to enable the products to be identified by the Customs Officers examining them and relate it to the invoice description and to the HS description of the good. If goods are not packed, state "in bulk". When the description of the goods is finished, add "***" (three stars) or " \ " (finishing slash).

Box 10:For each good described in Box 9, identify the HS tariff classification to six digits.

Box 11:If the goods qualify under the Rules of Origin, the exporter must indicate in Box 11 of this form the origin criteria on the basis of which he claims that his goods qualify for preferential tariff treatment, in the manner shown in the following table:

Box 12:   Gross weight in Kilos should be shown here. Other units of measurement e.g. volume or number of items which would indicate exact quantities may be used when customary.

Box 13: Invoice number, date of invoices and invoiced value should be shown here.

Box 14: The field must be completed, signed and dated by the exporter. Insert the place, date of signature.

Box 15: The field must be completed, signed, dated and stamped by the authorized person of the certifying authority. The telephone number, fax and address of the certifying authority shall be given.