CHAPTER 4

CUSTOMS PROCEDURES AND TRADE

FACILITATION

Article 1

Definitions

For the purposes of this Chapter:

(a) Customs Administration means:

(i) in respect of ASEAN, the customs

administration of each ASEAN Member
State or competent authorities that are
responsible under the internal law of the
ASEAN Member State for the
administration of customs law; and

(ii) in respect of Hong Kong, China, the

Customs and Excise Department of Hong
Kong, China;

(b) customs law means any internal law

administered, applied or enforced by the
Customs Administration of a Party; and

(c) customs procedures means the treatment

applied by the Customs Administration of a Party
to a good that is subject to customs law.

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 Article 2

Objectives

The objectives of this Chapter are to:

(a) ensure predictability, consistency and

transparency in the application of the customs
laws of the Parties;

(b) promote efficient and economical administration

of customs procedures, and the expeditious
clearance of goods;

(c) simplify and harmonise customs procedures to

the extent possible;

(d) promote co-operation among the Customs

Administrations of the Parties; and

(e) facilitate trade among the Parties.

Article 3

Scope

This Chapter applies, in accordance with the Parties’

respective internal laws, to customs procedures
applied to goods traded among the Parties.

Article 4

Customs Procedures and Facilitation

1. Each Party shall ensure that its customs

procedures and practices are predictable, consistent
and transparent, and facilitate trade including through
the expeditious clearance of goods.

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2. Customs procedures of the Parties shall, where
possible and to the extent permitted by their respective
customs laws, conform to standards and
recommended practices of the World Customs
Organization and other international organisations
relevant to customs.

3. The Customs Administration of each Party shall

review its customs procedures to facilitate trade.

4. Customs control shall be limited to such control

which is necessary to ensure compliance with the
customs laws of the respective Parties.

Article 5

Pre-arrival Processing

The Customs Administration of each Party shall

endeavour to adopt or maintain procedures allowing
for the submission of import documentation and other
required information, in electronic format as
appropriate, in order to begin processing prior to the
arrival of a good with a view to expediting the release
of the good upon arrival.

Article 6

Risk Management

1. Each Party shall use risk management to

determine control measures with a view to facilitating
legitimate trade, and expediting customs clearance
and release of goods.

2. Each Party shall administer customs procedures

so as to expedite the clearance of low-risk goods and
focus on high-risk goods.

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 Article 7

Customs Valuation

Each Party shall determine the customs value of goods

traded with other Parties in accordance with Article VII
of GATT 1994 and the Customs Valuation Agreement.

Article 8

Classification of Goods

Each Party shall apply the International Convention on

the Harmonized Commodity Description and Coding
System signed at Brussels on 14 June 1983, as
amended, to goods traded with other Parties.

Article 9

Use of Information Technology System

1. The Customs Administration of each Party,

where applicable, shall apply information technology in
customs operations based on internationally accepted
standards for expeditious customs clearance and
release of goods.

2. Each Party shall endeavour to establish and

operate its single window system to enable traders to
submit documentation or data requirements for
importation, exportation or transit of goods through a
single entry point to its relevant authorities or agencies.

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 Article 10

Authorized Economic Operators

1. The Customs Administration of each Party shall

endeavour to establish a programme of Authorized
Economic Operators (“AEOs”) on the basis of the SAFE
Framework of Standards to Secure and Facilitate
Global Trade of the World Customs Organization (the
“SAFE Framework”) to promote informed compliance
and facilitate trade while ensuring effective customs
control.

2. The Customs Administrations of the Parties shall

endeavour to work towards mutual recognition of AEOs
and develop their programmes on the basis of
international standards under the SAFE Framework.

Article 11

Post Clearance Audit

The Customs Administration of each Party shall

establish and operate post clearance audits to ensure
compliance with customs and other related law for
expeditious customs clearance.

Article 12

Advance Rulings

1. Each Party, through its Customs Administration

or other relevant authorities, shall, subject to its internal
law and administrative determinations, provide in
writing advance rulings to an applicant described in
subparagraph 2 (a), in respect of the tariff
classification, appropriate method or criteria and the

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application thereof to be used for determining the
customs valuation, and origin of goods.

2. Where available, each Party shall adopt or

maintain procedures for advance rulings, which shall:

(a) provide that an exporter, importer or any

person with a justifiable cause or a
representative thereof may apply for an
advance ruling before the importation of a
good in question;

(b) require that an applicant for an advance ruling

provides a detailed description of the good
and all relevant information needed to
process an application for an advance ruling;

(c) provide that its Customs Administration may,

at any time during the course of evaluation of
an application for an advance ruling, request
the applicant to provide additional information
within a specified period;

(d) provide that any advance ruling be based on

the facts and circumstances presented by the
applicant, and any other relevant information
in the possession of the decision-maker; and

(e) provide that an advance ruling be issued to

the applicant expeditiously on receipt of all
necessary information, within the period
specified in each Party’s respective internal
law or administrative determinations.

3. A Party may reject an application for an advance

ruling where the additional information requested in
accordance with subparagraph 2 (c) is not provided
within the specified period.

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4. Subject to paragraphs 1 and 5 and where
available, each Party shall apply an advance ruling to
all importations of goods described in that ruling
imported into its Area for three years from the date of
that ruling, or such other period as specified in that
Party's internal law or administrative determinations.

5. A Party may modify or revoke an advance ruling

upon a determination that the ruling was based on an
error of fact or law (including human error), the
information provided is false or inaccurate, there is a
change in its internal law in a manner consistent with
this Agreement, or there is a change in a material fact
or circumstances on which the ruling was based.

6. Where an importer claims that the treatment

accorded to an imported good should be governed by
an advance ruling, the Party may evaluate whether the
facts and circumstances of the importation are
consistent with the facts and circumstances upon
which an advance ruling was based.

Article 13

Temporary Admission

1. Each Party shall facilitate temporary admission of

a good in accordance with its internal law and the
relevant international standards applied by the Party.

2. Temporary admission in this Article means

customs procedures for certain goods which are
brought into a Party for a specific purpose and intended
for re-exportation within a specified period without
having undergone any change except normal
depreciation due to the use made of them. Such
customs procedures may include the goods being

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conditionally relieved totally or partially from payment
of import duties and taxes.

Article 14

Express Consignments

1. The Customs Administration of each Party shall

endeavour to put in place adequate measures and
mechanisms to facilitate customs clearance of express
consignments, including pre-arrival lodging and
processing of a goods declaration.

2. Goods declaration in this Article means a

statement made in the manner prescribed by the
Customs Administration of a Party, by which the
persons concerned indicate the customs procedure to
be applied to the goods and furnish the particulars
which the Customs Administration requires for the
application of the customs procedure.

Article 15

Customs Co-operation

To the extent permitted by its internal law, the Customs

Administration of each Party may, as it deems
appropriate, assist the Customs Administration of
another Party on:

(a) the implementation and operation of this

Chapter; and

(b) such other issues as the Parties mutually

determine.

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 Article 16

Publication and Enquiry Points

1. The Customs Administration of each Party shall

publish on the internet or in print form the customs law
and customs administrative procedures that it applies
or enforces, including any modifications thereof, except
law enforcement procedures and internal operational
guidelines.

2. The Customs Administration of each Party shall

designate one or more enquiry points to deal with
enquiries from interested persons concerning customs
matters, and shall make available on the internet or in
print form information concerning the procedures for
making such enquiries.

Article 17

Consultations

1. Each Party shall encourage its Customs

Administration to consult with the Customs
Administrations of the other Parties regarding issues
related to trade in goods arising from the operation or
implementation of this Chapter.

2. The Customs Administration of each Party shall

designate one or more contact points for the purposes
of this Chapter. Each Party shall provide information
on the contact points to the other Parties and notify any
amendment to such information to the other Parties as
soon as practicable.

3. The consultations referred to in paragraph 1 shall

be conducted through the contact points of the

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Customs Administrations of the relevant Parties, within
a timeframe to be mutually determined.

4. Any action taken pursuant to paragraph 1 shall

be without prejudice to the rights and obligations of the
Parties under Chapter 13 (Consultations and Dispute
Settlement) or under the WTO Dispute Settlement
Understanding.

Article 18

Review and Appeal

1. Each Party shall, in accordance with its internal

law, provide that the importer, exporter or any other
person affected by its administrative rulings,
determinations or decisions have access to:

(a) a level of administrative appeal to or review

by the authority higher than or independent of
the official or office responsible for the rulings,
determinations or decisions. The level of
administrative appeal or review may include
any authority supervising the Customs
Administration, subject to the internal law of
the Party; and/or

(b) judicial review or appeal of the administrative

rulings, determinations or decisions subject to
its internal law.

2. The decision on review or appeal shall be given

to the applicant or appellant and, subject to the Party’s
internal law, the reasons for such decision shall be
provided in writing.

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