Agreement on Trade, Economic and Technical Cooperation
between the Caribbean Community (CARICOM) and
the Government of the Republic of Venezuela

RULES OF ORIGIN

CHAPTER I: QUALIFICATION OF ORIGIN

Article 1

For the purposes of the qualification of Origin of the products which Venezuela will exempt from import duties and restrictions, according to Article 5 of the Trade and Investment Agreement between the Government of the Republic of Venezuela and the Caribbean Community, the following shall be considered as originating in CARICOM Member Countries:

(a) Items included in the tariff sub-headings indicated in Appendix I, for the sole reason of being produced in its territory. To this end, the following items are considered as produced:

- Mineral, vegetable and animal product: (including those from hunting and fishing extracted, harvested or gathered, born in its territory or in its territorial waters and exclusive economic zones; and

- Products of the sea extracted beyond its territorial waters and exclusive economic zones, by ships of its own flag or leased by enterprises which are legally established in its territory

(b) Items wholly produced in the territories of CARICOM Member Countries, when such items are exclusively produced with materials from any of said Countries

(c) Items manufactured using materials from third countries provided that they result from a process of substantial transformation, carried out in the territory of CARICOM Member Countries, which creates a different product characterised by the fact of being classified within the Harmonised Commodity Description and Coding System in a heading different from that of such materials

(d) Items that are the result of assembly operations which constitute a process of substantial transformation, carried out in the territory of a CARICOM Member Country and in the production of which materials from such countries, from Venezuela and from third countries are used, when the destination port c.i.f. value or the maritime port c.i.f. value of the materials from third countries does not exceed 50 per cent of the f.o.b export value of such products.

(e) Items that, besides being produced in the territories of CARICOM Member Countries, comply with the specific origin requirements established in Appendix 2, attached to these Rules.

Article 2

The specific origin requirements shall take precedence over the general criteria of the present Rules

The Joint Council may establish by means of amending protocols specific origin requirements in Trade and Investment Agreement between the Caribbean Community (CARICOM) and the Government of the Republic of Venezuela. In like manner, the Joint Council may amend the requirements previously agreed upon.

Article 3

The following will not be considered as processes of substantial transformation:

(a) operations to ensure the preservation of goods during transportation or storage, such as refrigeration, addition of preservatives,removal of damaged parts and the like;

(b) operations such as dust removal, sifting, shelling, winnowing, maceration, drying, sorting, classification, selection, crushing, washing, painting and cutting-up;

(c) the simple formation of sets of products;

(d) simple packing, placing in containers or repackaging;,

(e) the simple dividing up of assembly of packages;

(f) the affixing of brands, labels, or other similar distinctive signs;

(g) simple mixture of materials if the characteristics of the product obtained are not essentially different from the characteristics of the materials which have been mixed;

(h) the slaughter of animals;

(i) the simple gathering or assembly of imported parts

Article 4

For the purposes of the present Rules:

(a) the term "territory" includes the dutyfree zones located within the geographic boundaries of any of the CARICOM Member Countries;

(b) the term "materials" applies to the raw materials, the intermediate products, parts and spare parts, used in the production of merchandise.

Article 5

For the purposes of the fulfilment of the Rules of Origin established in this Chapter and in Appendix 2, the materials from the territory of one of the CARICOM Member Countries and from Venezuela used by another Member Country in the production of a particular merchandise, shall be considered as originating in the territory of the latter country

Article 6

In order to enjoy the benefit of preferential treatment, originating merchandise must be directly delivered from the exporting country to the importing country

For this purpose, the following shall be considered as direct consignment:

(a) Products transported without going through third country territories.

(b) Products transported in transit through one or more nonparticipating countries, with or without transhipment, or temporary storage under the surveillance of customs authorities of such countries, provided that:

(i) they are not designed for trade or use in the transit country; and

(ii) they do not undergo during transportation or storage, any operation other than Loading or unloading or operations to keep them in good condition and ensure their conservation

CHAPTER II: DECLARATION, CERTIFICATION AND PROOF OF ORIGIN

Article 7

In order for the products to benefit from the preferential treatment contemplated under Article 4 of the Trade and Investment Agreement between the Caribbean Community (CARICOM) and the Government of the Republic of Venezuela, a declaration certifying the fulfilment of the origin requirements described in Chapter I, in the format adopted by ALADI (Latin American Integration Association), set out in Appendix 3, must be included in the export documentation To this end, Venezuela undertakes to notify the CARICOM Secretariat of any modification to the form adopted by ALADI.

Such declaration may be issued by the final producer or by the exporter of the merchandise concerned, and must in any case be certified by an official body

Origin certificates issued for the purpose of complying with the exemption regime, will be valid for a period of 180 days from the date of certification by the appropriate body or entity of the exporting country.

Article 8

CARICOM Member Countries will transmit to the Venezuelan Foreign Trade Institute the approved list of official bodies authorised to issue the certification mentioned in the previous Article,along with a list of signatories and facsimiles of the authorised signatures

Article 9

The Venezuelan Foreign Trade Institute will keep an updated record of official bodies authorised by CARICOM Member Countries to issue origin certificates Any changes requested by these countries will take effect within 30 days after receipt of the communication from the country

Article 10

The functions and obligations of official bodies authorised by CARICOM Member Countries to carry out origin certification, will be, inter alia the following:

(a) to verify the accuracy of the declaration presented to them by the producer or the exporter by way of systems or procedures which ensure the accuracy of the data

(b) to provide to the Venezuelan Foreign Trade Institute the administrative cooperation required for the control of documentary proof of origin

Article 11

The Venezuelan Foreign Trade Institute may request the official bodies authorised by CARICOM Member Countries to issue certificates of origin to carry out control of this document when:

(a) There are grounds for doubts regarding the authenticity of the document:

(b) There are grounds for doubts in regard to the accuracy of the data contained therein;

(c) For random checks

Article 12

The requests for control procedures will be made within a period of one year from the date of the customs declaration in the importing country. In like manner, such requests shall be answered no later than three months after the date of the request

Article 13

When the Venezuelan agencies arrive at the conclusion that the origin certificates do not comply with the provisions of the present regime, they will transmit their opinion to the exporting country in order for that country to take the necessary action to achieve a solution to the problems described.

In no case shall the Venezuelan authorities interrupt an import procedure of the products covered by the certificates mentioned in the above Article. However the Venezuelan authorities, in addition to requesting the appropriate additional information from the Governmental authorities of the exporting countries,shall adopt the actions they deem necessary to safeguard the fiscal interests.

THE FOLLOWING PRODUCTS ARE CONSIDERED TO HAVE ORIGINATED IN CARICOM COUNTRIES

APPENDIX 2: SPECIFIC ORIGIN REQUIREMENTS

ARTICLE 1

Items included in Chapters 61, 62 and 63, manufactured using materials from third countries, will be considered as originating in CARICOM Member Countries, provided that:

(a) the materials from third countries must be classified in headings different from the headings of Chapter 61. 62 and 63:

(b) their production includes material originating in the CARICOM Member Countries; and

(c) the c.i.f. value of the materials from third countries does not exceed 40% of the f.o.b export value of such products.

ARTICLE 2

Items included in Chapter 64, manufactured using materials from third countries, will be considered as originating in CARICOM Member Countries, provided that:

(a) a change to headings 64.0-64.06 from any headings except from the headings of Chapter 64

(b) their production includes materials originating in the CARICOM Member Countries; and

(c) the c.i.f. value of the materials from third countries does not exceed 40% of the f.o.b. export value of such products.

NOTES:

(*) This column indicates the order in which the items contained in the present certificate are listed. Should this space be inadequate, the listing may be continued on additional copies of this certificate, appropriately numbered.

(**) In this space is to be specified the Rule of Origin fulfilled by each product identified by reference to the provision in the Agreement.

THIS FORM WILL NOT BE CONSIDERED VALID IF IT CONTAINS ERASURES, CORRECTIONS OR AMENDMENTS

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