Treaty Establishing the Caribbean Community and Common Market - CARICOM SCHEDULE II: RULES REGARDING COMMON MARKET ORIGIN referred to in Article 14 of the Annex to the Treaty. For the purpose of determining the origin of goods under Article 14 and for the application of that Article, the following Rules shall be applied: Rule I--Interpretative Provisions In determining the place of production of marine products and goods produced therefrom, a vessel of a Member State shall be regarded as part of that State. In determining the place from which goods have been consigned, marine products taken from the sea or goods produced therefrom at sea shall be regarded as having been consigned from a Member State if they were taken by or produced in a vessel of a Member State and have been brought direct to the Common Market. 2. For the purpose of this Rule a vessel shall be treated as a vessel of a Member State only if-- (a) it is registered in a Member State; (b) it carries a complement (inclusive of the Master thereof) of which not less than three-fourths are nationals of Member States; and (c) it is owned and operated by-- (i) nationals of Member States; or (ii) a Government of a Member State; or (iii) a statutory Corporation of a Member State. In this paragraph nationals of Member States shall have the same meaning as in paragraph 6 of Article 35 of the Annex to the Treaty. 3. "Materials" includes products, parts and components used in the production of the goods. 4. Energy, fuel, plant, machinery and tools used in the production of goods within the Common Market, and materials used in the maintenance of such plant, machinery and tools, shall be regarded as wholly produced within the Common Market when determining the origin of those goods. 5. "Produced" in sub-paragraph (c) of paragraph l of Article 14 and a "process of production" in paragraph 2 of that Article include the application of any operation or process, with the exception of any operation or process which consists only of one or more of the following:-- (a) packing, wherever the packing materials may have been produced; (b) splitting up into lots; (c) sorting and grading; (d) marking; (e) putting up into sets. 6. The term "producer" includes a grower and a manufacturer and also a person who supplies his goods otherwise than by sale to another person and to whose order the last process in the course of the manufacture of the goods is applied by that other person. Rule 2--Goods wholly produced within the Common Market. For the purpose of sub-paragraph (a) of Paragraph l of Article 14, the following are among the products which shall be regarded as wholly produced within the Common Market:-- (a) mineral products extracted from the ground within the Common Market; (b) vegetable products harvested within the Common Market; (c) live animals born and raised within the Common Market; (d) products obtained within the Common Market from live animals; (e) products obtained by hunting or fishing conducted within the Common Market; (f) marine products taken from the sea by a vessel of a Member State; (g) used articles fit only for the recovery of materials, provided that they have been collected from users within the Common Market; (h) scrap and waste resulting from manufacturing operations within the Common Market; (i) goods produced within the Common Market exclusively from one or both of the following-- (1) products within the sub-paragraphs (a) to (h) (2) materials containing no element imported from outside the Common Market or of un-determined origin. Rule 3 -- Application of Percentage Criterion (a) Any materials which meet the conditions specified in sub-paragraph (a) or (b) of paragraph l of that Article shall be regarded as containing no element imported from outside the Common Market. (b) The value of any materials which can be identified as having been imported from outside the Common Market shall be their c.i.f. value accepted by the Customs Authorities on clearance for home use, or on temporary admission, at the time of last importation into the Member State where they were used in a process of production, less the amount of any transport costs incurred in transit through other Member States. (c) If the value of any materials imported from outside the Common Market cannot be determined in accordance with sub-paragraph (b) of this Rule, their value shall be the earliest ascertainable price paid for them in the Member State where they were used in a process of production. (d) If the origin of any materials cannot be determined, such materials shall be deemed to have been imported from outside the Common Market and their value shall be the earliest ascertainable price paid for them in the Member State where they were used in a process of production. (e) The export price of the goods shall be the price paid or payable for them to the exporter in the Member State where the goods were produced, that price being adjusted, where necessary, to an f.o.b. or free at frontier basis in that State. (f) The value under sub-paragraph (b), (c), or (d) or the export price under sub-paragraph (c) of this Rule may be adjusted to correspond with the amount which would have been obtained on a sale in the open market between buyer and seller independent of each other. This amount shall also be taken to be the export price when the goods are not the subject of a sale. Rule 4 --Unit of Qualification 1. Each article in a consignment shall be considered separately. 2. For the purposes of paragraph l of this Rule-- (a) where the Brussels Nomenclature specifies that a group, set or assembly of articles is to be classified within a single heading, such a group, set or assembly shall be treated as one article; (b) tools, parts and accessories which are imported with an article, and the price of which is included in that of the article or for which no separate charge is made, shall be considered as forming a whole with the article, provided that they constitute the standard equipment customarily included on the sale of articles of that kind; (c) in cases not within sub-paragraphs (a) and (b), goods shall be treated as a single article if they are so treated for purposes of assessing customs duties by the importing Member State. 3. An unassembled or disassembled article which is imported in more than one consignment because it is not feasible for transport or production reasons to import it in a single consignment shall, if the importer so requests, be treated as one article. Rule 5--Segregation of materials 1. For those products or industries where it would be impracticable for the producer physically to segregate materials of similar character but different origin used in the production of goods, such segregation may be replaced by an appropriate accounting system, which ensures that no more goods received Common Market tariff treatment than would have been the case if the producer had been able physically to segregate the materials. 2. Any such accounting system shall conform to such conditions as may be agreed upon by the Member States concerned in order to ensure that adequate control measures will be applied. RULE 6 -- TREATMENT OF MlXTURES 1. In the case of mixtures, not being groups, sets or assemblies of separable articles dealt with under Rule 4 a Member State may refuse to accept as being of Common Market origin any product resulting from the mixing together of goods which would qualify as being of Common Market origin with goods which would not so qualify if the characteristics of the 'products as a whole are not essentially different from the characteristics of the goods which have been mixed. 2. In the case of particular products where it is, however, recognised by Member States concerned to be desirable to permit mixing of the kind described in the foregoing paragraph, such products shall be accepted as of Common Market origin in respect of such part thereof as may be shown to correspond to the quantity of goods of Common Market origin used in the mixing, subject to such conditions as may be agreed upon. RULE 7 -- TREATMENT OF PACKAGING 1. Where for purposes of assessing Customs duties a Member State treats goods separately from their packing, it may also, in respect of its imports consigned from another Member State, determine separately the origin of such packing. 2. Where paragraph l of this Rule is not applied, packing shall be considered as forming a whole with the goods and no part of any packing required for their transport or storage shall be considered as having been imported from outside the Common Market, when determining, the origin of the goods as a whole. 3. For the purpose of paragraph 2 of this Rule, packing with which goods are ordinarily sold by retail shall not be regarded as packing required for the transport or storage of goods. RULE 8 -- Documentary Evidence 1. A claim that goods shall be accepted as eligible for Common Market tariff treatment shall be supported by appropriate documentary evidence of origin and consignment. The evidence of origin shall consist of either-- (a) a declaration of origin completed by the last producer of the goods within the Common Market, together with a supplementary declaration completed by the exporter in cases where the producer is not himself or by his agent the exporter of the goods; or (b) a certificate given by a governmental authority or authorised body nominated by the exporting Member State and notified to the other Member States together with a supplementary declaration completed by the exporter of the goods. These declarations, certificate and supplementary declarations shall be in the form prescribed by the Council from time to time. 2. The exporter may choose either of the forms of evidence referred to in paragraph l of this Rule. Nevertheless, the authorities of the country of exportation may require for certain categories of goods that evidence of origin shall be furnished in the form indicated in sub-paragraph (b) of that paragraph. 3. In cases where a certificate of origin is to be supplied by a governmental authority or an authorised body under sub-paragraph (b) of paragraph 1 of this Rule, that authority or body shall obtain a declaration as to the origin of the goods given by the last producer of the goods within the Common Market. The governmental authority or the authorised body shall satisfy themselves as to the accuracy of the evidence provided; where necessary they shall require the production of additional information, and shall carry out any suitable check. If the authorities of the importing Member State so require, a confidential indication of the producer of the goods shall be given. 4. Nominations of authorised bodies for the purpose of sub-paragraph (b) of paragraph 1 of this Rule, may be withdrawn by the exporting Member State if the need arises. Each Member State shall retain, in regard to its imports, the right of refusing to accept certificates from any authorised body which is shown to have repeatedly issued certificates in an improper manner, but such action shall not be taken without adequate prior notification to the exporting Member State of the grounds for dissatisfaction. 5. In cases where the Member States concerned recognise that it is impracticable for the producer to make the declaration of origin specified in sub-paragraph (a) of paragraph l or in paragraph 3 of this Rule, the exporter may make that declaration in such form as those Member States may for the purpose specify. 6. The Council may decide that further or different provisions concerning evidence of origin or of consignment shall apply to particular categories of goods or classes of transactions. RULE 9 -- Verification of Evidence of Origin 1. The importing Member State may as necessary require further evidence to support any declaration or certificate of origin furnished under Rule 8. 2. The importing Member State shall not prevent the importer from taking delivery of the goods solely on the grounds that it requires such further evidence, but may require security for any duty or other charge which may be payable; provided that where goods are subject to any import restrictions or prohibitions, the stipulation for delivery under security shall not apply. 3. Where, under paragraph l of this Rule, a Member State has required further evidence to be furnished, those concerned in another Member State shall be free to produce it to a governmental authority or an authorised body of the latter State, who shall, after thorough verification of the evidence, furnish an appropriate report to the importing Member State. 4. Where it is necessary to do so by reason of its legislation, a Member State may prescribe that requests by the authorities of importing Member States for further evidence from those concerned in the Member State shall be addressed to a specified governmental authority, who shall after thorough verification of the evidence furnish an appropriate report to the importing Member State. 5. If the importing Member State wishes an investigation to be made into the accuracy of the evidence which it has received, it may make a request to that effect to the other Member State or States concerned. 6. Information obtained under the provisions of this Rule by the importing Member State shall be treated as confidential. RULE 10 -- Sanctions 1. Member States undertake to introduce legislation, making such provision as may be necessary for penalties against persons who, in their State, furnish or cause to be furnished a document which is untrue in a material particular in support of a claim in another Member State that goods should be accepted as eligible for Common Market tariff treatment. The penalties applicable shall be similar to those applicable in cases of untrue declarations in regard to payment of duty on imports. 2. A Member State may deal with the offence out of court, if it can be more appropriately dealt with by a compromise penalty or similar administrative procedure. 3. A Member State shall be under no obligation to institute or continue court proceedings, or action under paragraph 2 of this Rule-- (a) if it has not been requested to do so by the importing Member State to which the untrue claim was made; or (b) if, on the evidence available, the proceedings would not be justified. LIST OF CONDITIONS TO BE COMPLIED WITH AS PROVIDED UNDER ARTICLE 14 OF THE ANNEX TO THE TREATY AND THE RULES REGARDING THE COMMON MARKET ORIGIN This Schedule consists of: (a) The List comprising - Part A - goods referred to in sub-paragraph (b)(ii) of paragraph 1 of Article 14 of the Annex to the Treaty Part B - goods referred to in paragraph 2 of Article 14 of the Annex to the Treaty Part C - goods referred to in paragraph (b)(iii) of paragraph1 of Article 14 of the Annex to the Treaty (b) The Rules regarding Common Market origin except in respect of those goods covered by the Appendix and (c) The Appendix setting out the Rules regarding Common Market origin for certain goods specified in Part A of the List when produced in the Less Developed Countries. Only (b) above has been reproduced in detail. Continue on to Schedule II: Basic Materials List