Regulations of the Central American Uniform Customs Code (RECAUCA)

Purpose. The purpose of this Regulation is to develop the provisions of the Central American Uniform Customs Code.

Scope of Application. Except for provisions to the contrary arising from conventions, treaties or international agreements, the customs normative framework constituted by the Central American Uniform Customs Code and this Regulation shall be applied uniformly throughout the entirety of the customs territory of the States Party.

Definitions. For the purposes of applying the Code and this Regulation, in addition to those set forth in the Code, the following definitions and abbreviations are adopted: AGREEMENT: Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade of 1994. DEBT: The amount to which the customs tax obligation amounts. ARRIVAL: Arrival of vehicles and transportation units at a customs port. It requires presenting them to exercise customs receiving control. FORCED ARRIVAL: The arrival of a means of transport at a point different from the intended destination, as a consequence of circumstances occurring by force majeure or act of God duly verified by the Customs Authority. AUXILIARIES: Are the auxiliaries of the customs public function defined in the Code. PACKAGE: A unit used to contain merchandise. It may consist of boxes, bundles, cylinders and other forms of presentation of merchandise, according to its nature. BILL OF LADING: Is the document that contains a contract of land transportation in which the description of the transported merchandise is recorded, the conditions under which the transportation is carried out and the consignee thereof is designated. DIGITAL CERTIFICATE: A data structure created and digitally signed by a certificator, whose primary purpose is to enable its subscribers to create digital signatures, as well as personal identification in electronic transactions. CERTIFICATOR: The public or private legal person, national or foreign, provider of the service of creation, issuance and operation of digital certificates. CODE: The Central American Uniform Customs Code (CAUCA). CUSTOMS COMMITTEE: The one established in accordance with Article 10 of the Convention on Central American Tariff and Customs Regime. CONSOLIDATION OF MERCHANDISE: Activity that allows grouping different shipments (loads) from one or more consignees, to be transported under a single master transport document. BILL OF LADING: A title representative of merchandise that contains the contract entered into between the shipper and the carrier to transport it to the national territory and designates the consignee thereof. DECONSOLIDATION OF MERCHANDISE: Activity that allows the ungrouping of consolidated shipments in the same transport document or other equivalent document and that are destined to different consignees, presenting each individual shipment with its respective daughter transport document. UNLOADING: Process by which merchandise is unloaded from the means of transport. ELECTRONIC DOCUMENT: Any information, expressed or transmitted by electronic or computer means. TRANSPORT DOCUMENT: Is the one that contains the contract entered into between the shipper and the carrier to transport merchandise by sea, land or air or a combination thereof (multimodal). REASONABLE DOUBT: Is the right that the Customs Authority has to doubt the truthfulness or accuracy of the data or documents presented as proof of the declared value, which arises as a result of the comparative analysis of the declared value, with the available information on transaction values of identical or similar merchandise to those being appraised, and in the absence thereof, based on reference prices contained in specialized consultation sources such as price lists, books, magazines, catalogs, newspapers and other documents. LOADING: Process by which merchandise is loaded onto the means of transport. PRIOR EXAMINATION: The physical inspection of merchandise, prior to its dispatch, to determine its general characteristics and the determining elements of customs tax obligations and other requirements necessary for authorization of the customs regime or operation for which they will be designated. EXEMPTION: Temporary or permanent waiver of payment of duties on the import or export of merchandise. COMMERCIAL INVOICE: Document issued by the seller, in which the merchandise to be exported or imported is related with unit and total prices and other annotations required by foreign trade. SHORTAGE: Merchandise declared in the manifest that has not been unloaded by the means of transport. FRANCHISE: Is the total or partial exemption from duties that is granted by law to imported merchandise for a specific purpose or by specific persons. ELECTRONIC OR DIGITAL SIGNATURE: Set of data attached to or logically associated with an electronic document, which allows verification of its integrity, as well as identifying unequivocally and legally binding the author to the document. GUARANTEE: A bond that is constituted in accordance with what is established in this Regulation, with the object of ensuring compliance with the customs tax obligation eventually due and pecuniary penalties for non-compliance with the obligations established by this Regulation. AIR WAYBILL: Document equivalent to the bill of lading, used in air transport of merchandise, by which the air navigation company acknowledges the fact of the loading of merchandise and expresses the conditions of the agreed transportation. INTEGRITY: Property of an electronic document that denotes that its content and identification characteristics have remained unaltered since the moment of its issuance. RELEASE: Is the act by which the Customs Authority permits declarants to dispose of merchandise that has been subject to customs dispatch. CARGO MANIFEST: Document presented by the person responsible for transporting merchandise, prior to or upon the arrival or departure of the means of transport and that contains the information required in this Regulation. MERCHANDISE: Tangible and intangible goods susceptible to commercial exchange. FOREIGN MERCHANDISE: Is that which originates from abroad and whose importation has not been legally consummated. NON-REPUDIATION: Is a technical-legal mechanism that guarantees that the parties, in a communication or transaction, cannot later deny or reject that that communication occurred, or that there is no obligation derived from the transaction. CUSTOMS OPERATION: Physical activity, authorized by the Code, this Regulation or other related normative, which is the subject of merchandise and is carried out under customs control. NON-TARIFF RESTRICTIONS AND REGULATIONS: Are all those licenses, permits, certificates or authorizations, of a non-tax nature, determined and required by national legislation or international conventions for the entry or exit of merchandise. SURPLUS: Merchandise unloaded from the means of transport in which they entered the customs territory, which represents an excess of those included in the cargo manifest. SUBSCRIBERS: The persons in whose favor a digital certificate is issued and who use it for the purposes set forth in this Regulation. CUSTOMS PROCEDURE: Any management related to customs operations or regimes, carried out before the Customs Service. TRANSPORTATION UNITS: Any means of transport used for the entry, transit, transfer, transshipment or exit of merchandise to, from or through the customs territory, such as: containers, trucks, tractor trucks, wagons, platforms, aircraft or ships, railroad cars and other similar means of transport. VEHICLE: Any motorized means of transport of persons, cargo or transportation units. For the purposes of this Regulation, a vehicle with a cargo compartment shall be considered as a transportation unit.

Organization. For the exercise of its functions, the organization of the Customs Service shall be established in accordance with what is provided in the Code, this Regulation and in the organizational structure model adopted by each State Party. The Customs Service of each State Party shall establish the functions that the administrative units must develop, in accordance with its organization.

General Functions and Attributions. The Customs Service has the following functions and attributions, among others:

• a)

  To require and verify compliance with the elements that determine the customs tax obligation, such as nature, characteristics, tariff classification, origin and customs value of merchandise and the other duties, requirements and obligations, derived from the entry, permanence and exit of merchandise and means of transport from the customs territory;

• b)

  To require and verify payment of duties;

• c)

  To develop and apply customs procedures, as well as to propose modifications of the norms, to adapt them to technical and technological changes in accordance with the requirements of international trade and according to criteria of simplicity, specificity, uniformity, effectiveness and efficiency;

• d)

  To require the electronic transmission of information for the application of the different customs regimes and operations;

• e)

  To conduct the exchange of customs information, within the framework of the Code, this Regulation and the regional and international agreements in force for each of the States Party;

• f)

  To comply with and ensure compliance with the norms contained in the Code, this Regulation and other customs provisions;

• g)

  To investigate the commission of customs infractions and to impose, where applicable, the corresponding sanctions;

• h)

  To sell at public auction under the procedures established by this Regulation or the Customs Service through special agreements or to submit to other forms of disposal, abandoned merchandise and merchandise that has been subject to seizure, where applicable, in accordance with what the Code and this Regulation establish;

• i)

  To verify, when applicable, the correct use and destination of merchandise that enters the customs territory with the benefit of some fiscal stimulus, franchise, exemption or reduction of duties, as well as compliance with the conditions established in the law granting the benefit;

• j)

  To apply the corresponding control measures for the protection of intellectual property rights, in accordance with international conventions on the matter;

• k)

  To require from auxiliaries, importers, exporters, producers, declarants and third parties related to these, the presentation of accounting books, their annexes, files, accounting records, inventory control and management, other information of tax or customs significance and electronic files, magnetic media or similar that support or contain such information, in the terms established by customs legislation;

• l)

  To enter, in the exercise of customs authority, in establishments or places where activities or exploitations related to customs obligations are developed, as well as to ports, wharfs, airports, yards, warehouses and other sites where merchandise subject to customs control remains;

• m)

  To apply the provisions issued by the competent authorities, relating to rights against unfair practices of international trade, safeguard measures and other tariff and non-tariff regulations of foreign trade;

• n)

  To verify that auxiliaries comply with the requirements, duties and obligations established in the Code and this Regulation; o) To retain or seize, where applicable, merchandise whose import or export is prohibited and to take the corresponding measures; p) To establish registries and databases that contain information about habitual importers, auxiliaries and exporters, being able to require their registration in such registries; q) To apply all conventions, agreements and international treaties duly ratified by the States Party, which are in force in the international sphere in customs and foreign trade matters; r) To exercise control of the customs territory as well as to apply the foreign trade policies in force, in accordance with the Code, this Regulation and other applicable legislation; s) To generate international trade statistics; t) To process, know and resolve, where applicable, inquiries, claims, appeals and challenges filed; u) To grant, suspend or cancel, when applicable, the authorizations of auxiliaries; v) To sign, when it deems convenient, agreements with auxiliaries, public or private institutions, to implement improvement projects of the Customs Service, as well as infrastructure use and training, among others; and w) The other attributions indicated in the Code and this Regulation.

Customs Zones. For purposes of Article 6 of the Code, the customs territory is divided into:

• a)

  Primary zone or customs operation area;

• b)

  Secondary zone or free circulation area; and c) Special surveillance zone.

Designations. The primary zone or customs operation area is designated as any area where services, controls or customs operations are provided or carried out, temporarily or permanently, and which extends to the portions of territorial sea where such services are exercised, as well as to the dependencies and related facilities established in the vicinity of its offices, warehouses and premises, such as wharfs, roads and landing fields legally authorized for that purpose. The secondary zone or free circulation area is designated as the remaining part of the customs territory. The special surveillance zone is designated as the places or sites within the secondary zone where customs authorities may establish themselves, with the object of subjecting persons, means of transport or merchandise that circulate there, to review, inspection or examination intended to ensure compliance with customs provisions.

Types of Control. For purposes of Articles 8, 9 and 12 of the Code, customs control may be permanent, prior, immediate or subsequent to the release of merchandise. Permanent control is exercised, at any time, over auxiliaries with respect to compliance with their operating requirements, duties and obligations. It is also exercised over merchandise that, after its release or withdrawal, remains subject to any of the non-definitive customs regimes, while these remain in the customs territory, within the customs legal relationship, monitoring and verifying compliance with the conditions of permanence, use and destination. Prior control is exercised over merchandise prior to their being subject to a customs regime. Immediate control is exercised over merchandise from their entry into the customs territory or from when they are presented for exit and until their release is authorized. A posteriori control is exercised once merchandise has been released, with respect to customs operations, acts derived from them, customs declarations, determinations of customs tax obligations, payments of duties and the actions of auxiliaries, officials and other natural or legal persons that intervene in foreign trade operations.

Use of Non-Intrusive or Non-Invasive Controls. When, in application of the second paragraph of Article 9 of the Code, customs services exercise control using non-intrusive or invasive inspection equipment, they shall be applied taking into account, in addition to the results of risk analysis, other mechanisms that allow users of the Customs Service to effect the rapid dispatch of their merchandise, with times and operational costs that do not constitute a barrier to trade. The operational management of non-intrusive or invasive inspection equipment may be concessioned by the Customs Service or the corresponding state authority prior to favorable technical criteria from the Customs Authority.

Exercise of Control. Customs control and supervision shall be exercised: a) Over compliance with the duties and obligations of auxiliaries, as well as the norms and procedures established in the Code, this Regulation and by the Customs Service; and b) Over customs operations, acts derived from them, declarations, determinations of customs tax obligations, payments of duties and the actions of exporters and importers, producers and other customs tax obligors.

Subjects of Supervision. The powers of customs control and supervision contained in the Code and in this Regulation shall be exercised by the competent bodies in relation to the actions or omissions of:

• a)

  Auxiliaries;

• b)

  Declarants;

• c)

  Employees and officials of the Customs Service; and d) Other subjects that intervene in the process of arrival, arrival and dispatch of merchandise.

Exercise of Customs Authority. Customs services in the exercise of customs authority may retain or seize merchandise and means of transport when there is well-founded presumption of the commission of a crime or customs infraction, in order to initiate the corresponding proceedings as well as to place them, where applicable, at the disposal of the competent authority.

Coordination of Functions. The authorities of migration, health, police and all those public entities that exercise control over the entry or exit of persons, merchandise and means of transport from the customs territory, must exercise their functions in a coordinated manner with the Customs Authority, cooperating with each other for the correct application of the different legal and administrative provisions. For such purposes, the Customs Service shall promote the creation of inter-institutional coordination bodies.

Aid from Other Authorities. Officials from other public agencies, within the scope of their competence, shall assist the Customs Authority in the fulfillment of its functions; they shall immediately notify it of facts and acts regarding alleged customs infractions and shall make available to it, if they are in their possession, the merchandise that is the subject of these infractions.

Responsibility. In application of Article 13 of the Code, in addition to the responsibilities established therein, administrative, civil and criminal actions shall be deduced against the customs official or employee and charges or adjustments shall be made against the persons who have benefited from the shortcomings thereof, in the manner indicated by the Code, this Regulation and other legal provisions.

Risk and risk management. For purposes of this Section, risk is the possibility that an event will occur that adversely affects compliance with customs legislation and foreign trade. Risk is measured in terms of probability, magnitude, and materiality of loss or injury. Likewise, risk management is the systematic application of administrative procedures and practices that provide the Customs Service with the information necessary to address movements or merchandise that pose a risk.

Risk database. For purposes of implementing Article 11 of the Code, customs services shall create the regional database and update it with information from existing national databases and those to be developed in the future, related to:

• a)

  Information on foreign trade operations;

• b)

  Registry of importers;

• c)

  Registry of exporters;

• d)

  Users of definitive, temporary, or suspensive regimes and liberatory regimes;

• e)

  Auxiliaries of the customs public function;

• f)

  Data of authors of administrative, tax, and criminal infractions; and g) Others that customs services deem necessary.

Methodology. Risk management shall be based on harmonized methodology, through the implementation, among others, of the following actions:

• a)

  Establishing the context;

• b)

  Identifying and describing risks;

• c)

  Analyzing the risk factors or indicators to be used;

• d)

  Evaluating the risks and the type of customs controls that customs services must exercise; and e) Treating risks, including timeframes for application of the customs controls established in item d). The information resulting from the application of the methodology contemplated in this Article shall be used by customs services of the States Party for the implementation of the electronic risk management system.

Regional risk criteria. For purposes of item b) of

of the Code, customs services through their risk management units shall establish risk criteria to be applied at the regional level, among others, of the following subjects or elements:

• a)

  Associated with subjects: such as importers, exporters, auxiliaries, consignees, public entities, suppliers, or sectors related to specific areas that may represent higher risks or greater incidence;

• b)

  Associated with merchandise: by chapter, tariff heading, tariff subheading, origin, provenance, country of acquisition, non-tariff requirements, weight, number of packages, among others; and c) Associated with operations: by regime, modality, and those related to compliance with specific regulations. When establishing priorities in matters of customs control and determining risk management criteria, customs services shall take into account the proportionality of risk, the urgency of application of controls, and the possible impact on trade flows and tax collection.

Registers. For purposes of the preceding Article, the customs services of each State Party shall establish and maintain updated the register or databases with the information referred to in said Article through the forms or electronic formats established for that purpose, containing at least the following data:

• a)

  Name and tax identification number of the natural or legal person;

• b)

  Exact address for receiving notifications in each State Party where it will conduct activities;

• c)

  Detail of the commercial activity to which it is dedicated;

• d)

  Name of the legal representative; and e) Other data required by the Customs Service. The subjects required to register are obligated to update their registration information annually. In any case, they must immediately communicate any modification to the corresponding administrative body of the Customs Service. Customs operations shall not be authorized for said subjects until the registration information is updated.

Identification. The Customs Service may assign a unique register, which shall serve as identification for the customs operations carried out by registered subjects.

Information exchange. For the purpose of regulating the exchange of information referred to in Article 16 of the Code, customs services shall be governed by what is established in the Mutual Assistance and Technical Cooperation Agreements subscribed between the Tax and Customs Administrations of the States Party, as well as others that at the bilateral or multilateral level are of mandatory application for said States. CHAPTER IV INSPECTION ACTIONS

Competence of inspection bodies. The inspection bodies of the Customs Service shall have competence to supervise, inspect, verify, and evaluate compliance with customs and foreign trade provisions as applicable, before, during, and after the customs clearance of merchandise, in accordance with the control mechanisms established for that purpose.

Powers of inspection bodies. Without prejudice to what is established in Article 5 of this Regulation, inspection bodies in the exercise of customs control, in accordance with their competencies and functions, shall have, among others, the following powers:

• a)

  Verify compliance with customs obligations;

• b)

  Verify compliance with the obligations and duties of auxiliaries;

• c)

  Verify the accuracy of the declaration of merchandise presented to customs authorities;

• d)

  Require of inspection subjects and third parties related to them the presentation of accounting books, their annexes, files, accounting records, inventory control and management, other information of tax or customs significance, and electronic files, magnetic media, or similar supports that back up or contain that information;

• e)

  Visit businesses, industrial, commercial, or service establishments, conduct audits, request and examine necessary information from inspection subjects and third parties to verify the content of merchandise declarations and customs operations, in accordance with legally established procedures;

• f)

  Conduct investigations into the commission of alleged customs infractions and execute legal actions for their prosecution, when applicable;

• g)

  Verify the correct use of computer systems authorized by the Customs Service;

• h)

  Verify, as applicable, the correct use and destination of merchandise entering customs territory with the benefit of some fiscal stimulus, franchise, exemption, or tax reduction and compliance with the conditions established in the law that grants the benefit;

• i)

  Require and verify payment of corresponding taxes;

• j)

  Verify through the application of risk analysis techniques, the documentation of merchandise subject to customs control, according to the nature of the merchandise and the type of traffic being conducted; and k) Require, when it is within the competence of the Customs Service, the necessary evidence and verify compliance with rules on the origin of merchandise to apply tariff preferences, in accordance with the treaties in force for the States Party and the standards derived from them.

Prerogatives and rights of officers of inspection bodies. The work of inspection bodies shall be performed by officers who have been designated for such purpose. These duties include preparatory actions, verification actions, proof of facts or circumstances with tax or customs significance. Officers occupying positions for the development of inspection functions shall be vested with the corresponding rights, prerogatives, and considerations, and shall be subject to the rights inherent to the exercise and dignity of the public function. Public authorities, auxiliaries, and other inspection subjects must provide support to officers of inspection bodies, at the request of the latter. If they fail to do so and it involves auxiliaries and inspection subjects, the corresponding sanctioning procedures shall be initiated.

Duties of the officer in charge of conducting inspections. The officer of the inspection bodies must comply with the following duties:

• a)

  Execute customs inspection for the satisfaction of public interests, in accordance with the principles of effectiveness, efficiency, hierarchy, decentralization, deconcentration, and coordination, with full compliance with law;

• b)

  Exercise their functions with authority and in compliance with their duties, respecting rules of courtesy and morality, showing interested parties and the general public the greatest consideration, informing them, with discretion, of their tax and customs rights and duties and the conduct they must follow in their dealings with the Customs Service, to facilitate their compliance with obligations;

• c)

  Guard and observe confidentiality with respect to matters they know by reason of their office. Non-compliance shall be subject to the application of corresponding legal sanctions. This duty of confidentiality covers all personnel of the inspection units;

• d)

  Inform the competent administrative authority of facts they learn of in the conduct of their actions that may constitute crimes or administrative and tax customs infractions, for purposes of filing the corresponding criminal complaint or initiating the corresponding administrative procedure. Likewise, provide the data required by the competent authority in connection with the prosecution of said crimes and infractions; and e) Carry in a visible place an identification card or other credential that accredits them for the performance of their functions. The facts and reports of actions must be known only by the officer handling the case and their hierarchical superiors. The exchange or provision of data between divisions of inspection bodies that are of tax significance for specific cases must be done following proper hierarchical order. Non-compliance with duties by officers in charge of inspection shall be sanctioned in accordance with the disciplinary regime established in each State Party, without prejudice to such conduct being constitutive of a crime.

Inspection actions. Inspection actions may be: a) Verification and investigation; and b) Obtaining information of tax or customs significance.

Verification and investigation actions. Verification and investigation actions shall have the purpose of verifying adequate compliance by taxpayers and auxiliaries with their obligations and duties contained in the customs legal regime. Likewise, it shall have the purpose of determining the possible existence of factual elements or other background information with customs tax significance that are unknown in whole or in part by the Customs Authority. Verification and investigation actions shall also have the purpose of reviewing and making adjustments to the customs tax obligation.

Scope of verification and investigation actions. Verification and investigation actions shall be general or partial, as established by the inspection body, through delimitation of the study objective. Actions shall be general in character when their purpose is the complete inspection of the customs tax situation of the taxpayer, auxiliaries, or obligated taxpayers. Verification and investigation actions shall be partial when they refer to one or several taxes or duties affecting the taxpayer, auxiliaries, or obligated taxpayers, or to taxable events delimited according to the study objective. General or partial character verification and investigation actions may be limited or expanded by the inspection body during their execution when reasonably justified circumstances warrant. Through inspection actions for verification and investigation, the data or background information held by the taxpayer, auxiliaries, or obligated taxpayers that are of customs tax relevance for the case under analysis must be obtained.

Information Gathering Actions. Information gathering actions are those whose purpose is to enable the tax authorities to obtain knowledge of data or antecedents of any nature that are in the possession of a natural or legal person and have customs tax significance.

Form of Actions. Tax audit actions must be carried out by the tax auditor or auditor designated for their execution. The head of the tax authority shall define other forms of designation and execution of tax audit actions in accordance with applicable regulations and international best practices.

Annual Audit Plan. The competent office of each State Party shall prepare, in a coordinated manner with the other units of the Customs Service, the draft annual audit plan, which it shall submit for consideration to the hierarchical superior thereof, within the timeframe determined by said Service. The plan must be approved on the first business day of the year for which it begins to take effect, and control of its execution shall be the responsibility of the respective office of the Customs Service.

Basis and Initiation of Tax Audit Actions. The tax authorities shall act pursuant to what is established in the annual audit plan, or on the basis of complaints or information reports submitted by customs officials or tax authorities, or express written order reasoned by the superior authority of the Customs Service. Actions that do not conform to the foregoing must be exceptional, for reasons of urgency, effectiveness or timeliness and shall be justified in writing and in a timely manner. Complaints without merit or that refer to facts already reported and filed may be dismissed without further proceedings.

Sources of Information. Sources of information for the preparation of the annual audit plan include, among others, the following:

• a)

  Information generated from the computer systems used by the Customs Service;

• b)

  Reports from customs officials and tax authorities, through information reports;

• c)

  Complaints from natural or legal persons;

• d)

  Periodic reports prepared by those executing the annual audit plan; and e) Other information supplied by auxiliaries, foreign trade companies, offices of the tax administration, of other ministries or international organizations, specialized publications, press and any other information of customs tax significance.

Information Reports. For purposes of subsection b) of the preceding Article, information reports are reports generated by customs officials and tax authorities, based on doubts arising during the customs clearance procedure, regarding customs declarations or regarding information or facts of customs tax significance, including doubts regarding the existence of possible customs violations. The procedure for issuing information reports, their format and the information they must contain, the deadlines for submission and other formalities shall be established in the corresponding operational manual.

Initiation of Tax Audit Actions. Tax audit actions shall be initiated: a) By notification to the person subject to audit, in which the place and time the audit will be conducted shall be indicated, the scope of the actions and any other information deemed necessary; or b) By appearing at the offices, facilities or warehouses of the person subject to audit or where there exists some proof, at least partial, of the taxable event. In this case, notification shall be made to the person subject to audit, their representative or the person in charge or responsible for the office, department, company, center or workplace at the time of appearance. In both cases, the person subject to audit must comply with the requirements of the auditors or investigators. In their absence, the person who holds their representation as a person in charge or responsible for the office, department, company, center or workplace must cooperate with the actions. Upon initiation of the actions, the officer in charge shall instruct the notified party regarding the procedure to follow, their rights, duties and obligations.

Place of Tax Audit Actions. Tax audit actions must be carried out in:

• a)

  The place where the taxpayer or their representative has their tax domicile or office where accounting records, vouchers that support the entries made in said records, or other documents of the activity carried out by the person subject to audit are located;

• b)

  The places where the activities subject to analysis are carried out in whole or in part;

• c)

  The sites or places where there exists some proof, at least partial, of the taxable event; or d) The facilities of producers, importers, exporters and other persons, as well as in public or private offices located in foreign territory, for the purpose of receiving testimony and obtaining information and documentation. With prior agreement of the person subject to audit or their representative, the documentation obtained may be examined in the offices of the tax authorities.

Schedule of Actions. Actions shall be carried out during the ordinary hours and normal working day of the place where the audit will be conducted. When justified circumstances exist and with the prior agreement of the parties, the audit may be carried out during extraordinary hours or schedules.

Development of Actions. Once initiated, tax audit actions must continue until completion. Tax audit actions may be interrupted by decision of the acting authority, for justified reasons or as a result of express written and reasoned superior order. The interruption of actions must be recorded in the administrative file established for this purpose. Tax audit actions must be carried out with the least possible disruption to the normal development of activities of the person subject to audit. The person subject to audit shall place at the disposal of the auditors an adequate workplace, as well as the necessary means, when actions are carried out in their offices or facilities.

Duty to Appear. Officers in charge of the audit may cite taxpayers and third parties to appear at the offices of the tax authority in order to answer, verbally or in writing, the questions or information requirements necessary to verify and audit customs tax obligations. The citation to appear and the report drawn up for this purpose must comply with the terms and conditions defined by each Customs Service.

Inspection of Premises. When it is necessary to determine or audit the customs tax situation, auditors may inspect the premises occupied by the taxpayer. In case of refusal or resistance, the tax authority shall request authorization from the competent authority to search the offices or facilities. A report shall be drawn up recording the refusal of the taxpayer to permit access, which shall indicate the place, date, name and other identifying information of said taxpayer and any other circumstance that it is deemed appropriate to specify. The report must be signed by the officer or officers who participate in the action and by the taxpayer. If the latter does not know, does not want to or cannot sign, this shall be so noted. Said report shall serve as the basis for the request for a search warrant. It shall not be necessary to obtain prior authorization, nor shall the precautionary measure of a search warrant be required, to enter for audit purposes, establishments that by their very nature are open to the public, provided that the respective information may be obtained in public access areas.

Review of Documentation. In verification and investigation actions, persons subject to audit must place at the disposal of tax audit officers their accounting, accounting books, invoices, correspondence, documentation and other supporting documents relating to their activity, including electronic files or magnetic or similar media that support or contain that information, in the event that the person uses electronic data processing equipment. They must also provide information of customs tax significance required by the administration to verify their customs tax situation. The audited subject is obliged to provide the tax authorities all types of data, reports or antecedents of customs tax significance derived from their economic, professional or financial relationships with other persons. Notes may be taken and copies obtained from the documentation and information provided.

Precautionary Measures. In accordance with the provisions in force in the States Party, at any time during the development of actions, officers in charge of the audit may adopt duly reasoned precautionary measures to ensure the final result of the tax audit action being conducted, in order to prevent evidence from disappearing, being destroyed or altered that determines the existence or fulfillment of customs tax obligations or that their existence or exhibition is later denied. The measures may consist, as appropriate, of seizure, deposit or confiscation of merchandise or products subject to tax, as well as the seizure of books, records, documents, files or electronic data processing equipment that may contain the information in question. Precautionary measures shall be proportionate and limited in time to the foregoing purposes without adopting those that may cause harm that is difficult or impossible to repair, and these shall be lifted if the circumstances that motivated them disappear.

Other Powers of Tax Authorities. For purposes of Article 42 of this Regulation and without prejudice to the other powers established, tax authorities shall be authorized to:

• a)

  Conduct measurements or take samples, as well as obtain photographs, make sketches or plans. These operations may be carried out by the tax authority's own officers or by persons designated in accordance with tax legislation;

• b)

  Request expert opinions;

• c)

  Demand the display of merchandise covered by customs operations and procedures;

• d)

  Verify the company's internal control systems, insofar as it may facilitate verification of the customs tax situation of the audited subject; and e) Require the translation into Spanish of any document with probative significance for customs tax purposes, at the expense of the audited subject.

Report of irregularities. In the event that irregularities are found to exist in declarations of taxes administered by a tax authority different from the Customs Service, the corresponding information shall be communicated to that authority for the legal effects that may be appropriate within its area of competence.

Documentation of proceedings. The actions of notification, processing, compliance or execution of an act, the practice of evidence and the facts or circumstances relevant in audit proceedings shall be recorded in the respective file.

Formalities of documents. The proceedings carried out by the audit bodies in the course of their actions shall be recorded in documents. The audit bodies shall establish the formalities that must be complied with in the documents in which their actions are recorded.

Conclusion of audit proceedings. Audit proceedings shall be concluded when, at the discretion of the audit bodies, the necessary data and evidence have been obtained to substantiate the acts that should be issued, either considering the tax situation of the audited subject to be correct given the fulfillment of its customs tax obligations, requirements and duties, or proceeding to execute the corresponding actions when non-compliance is established. When audit proceedings are concluded, their result shall be documented, incorporating the final report into the administrative file prepared for this purpose.

Regularization. When the audit body establishes that the taxes owed were not paid, the tax obligor shall be informed of the regularization that is appropriate, through the procedure established in the corresponding legislation or by the Customs Service. If the tax obligor does not regularize its situation, the administrative procedure shall be initiated or continued, as appropriate, in the terms established by each Member State.

Training. For purposes of the provisions of Article 15 of the Code, customs training is based on guaranteeing the technical training of human resources of the customs services of the Member States, in matters of legislation, customs procedures, customs valuation, origin, tariff classification, customs audit, treaties and commercial agreements and other matters related to foreign trade. Such training shall be developed under the principles of effectiveness, timeliness, continuity and permanence, utilizing modern teaching methodologies, means and techniques that enable the recipients of the knowledge to apply them correctly, continuously, timely and in a harmonized manner. Likewise, to the extent that customs services have adequate human resources, they may provide training related to production processes. In accordance with the nature of the training courses and the interests of the Customs Service, the senior authority of the latter may establish which shall be mandatory.

Requirements. To access training, the official or employee shall be required to:

• a)

  Be appointed by the Customs Service;

• b)

  Have the academic training required for the training program to be offered;

• c)

  Present an updated curriculum vitae, as applicable, whose credentials shall be properly supported in the personal file kept at the corresponding Customs Service;

• d)

  Execute a commitment with the Customs Service to remain in the institution for a minimum period equal to double the duration of the training received. If either party terminates the employment relationship, it must do so with justified cause; and e) Comply, in addition to the requirements mentioned above, with any other requirements that may be required in accordance with the profile established for each of the training programs.

Basis of regional training programs. Training programs developed at the regional level shall be based on the Operating Regulations of the Central American Customs and Tax School and agreements executed between the latter and the entities or organizations responsible for implementing the programs. Training programs shall be executed at the headquarters of the Central American Customs and Tax School, or in the other Member States that have adequate conditions for their development, upon prior request to the governing body of said School.

Technical support. The Member States, in their capacity as beneficiaries of training programs, shall provide technical and logistical support for their effective development, which may be materialized through the provision of facilities for holding courses or seminars, as well as the equipment and other teaching materials required. The foregoing includes the possibility of assigning trainers to support the academic work in accordance with the subject matter established in the training programs. Officials and employees trained in programs for trainers and those who accredit having aptitudes and specialized knowledge in specific topics shall be included in a registry that shall be created for this purpose by the Customs Service; those who are part of the same shall be willing and available to provide training services within the institution related to the training received.

Requirements and formalities. Among the requirements and formalities for the operability of mutual recognition among the Member States, the following are established, among others:

• a)

  That it involves controls in the customs operation that are carried out in compliance with customs legislation and other provisions that regulate foreign trade;

• b)

  That the control mechanisms applied have been previously agreed upon between the customs services of the Member States and that in no case shall they become an obstacle to free trade;

• c)

  In order for the controls not to be repetitive, the Member State that applies them must communicate the results of the same to the customs services of the other Member States that agreed to the mutual recognition and that may be involved in the customs regime or operation being executed;

• d)

  That the controls applied by a particular Member State be carried out preferably through automated means or through the use of non-intrusive or non-invasive review or inspection equipment;

• e)

  That when physical controls are carried out that require the presence of different institutions in accordance with the nature of the merchandise, the officials of the customs services responsible for conducting the same shall coordinate in a timely manner with officials of the other institutions, in order to avoid the repetition of said controls;

• f)

  That when laboratory analysis is required in the verification, it shall be carried out by the laboratory established within the structure of the customs services or by some laboratory recognized by the Member States;

• g)

  That the user of the Customs Service shall present the means of transport and the merchandise at the designated place to carry out physical verifications and within the established timeframe, and that the user shall assign the necessary human resources and equipment to carry out the verification; and h) Others established by the customs services of the Member States.

Exceptions to mutual recognition. In an exceptional manner, the authorities of the customs services in justified cases may conduct verifications themselves or request additional verifications to those already carried out by the competent authority of another Member State, provided that they communicate this in a timely manner and provide all necessary information to the authority that must conduct said verifications. In any case, the latter shall report on the results of the same to the Member State that originally conducted the verification.

Authorization. Auxiliaries shall be authorized by the senior authority of the Customs Service, prior to compliance with the following general requirements:

• a)

  Have legal capacity to act;

• b)

  Keep current in the payment of their tax obligations;

• c)

  In the case of legal entities, be constituted and registered in the corresponding registries;

• d)

  In the case of natural persons, be registered as individual merchants, when applicable;

• e)

  Be registered in the registry of taxpayers;

• f)

  Be domiciled in the Member State where authorization is requested; and g) In the case of natural persons, have no employment relationship with the State or its institutions. The customs services may require the applicant to have authorized equipment and computer programs necessary to carry out electronic transmission processes, prior to authorization. The auxiliary that, after having been authorized, ceases to comply with any general or specific requirement, shall not be able to operate as such until it demonstrates that it has remedied the non-compliance.

Impediments. The following may not be auxiliaries: a) Officials and employees of the State or its autonomous, semi-autonomous institutions and public enterprises; or b) Persons who are barred, by final judicial sentence, from holding public office.

Application. Natural or legal persons who request authorization as auxiliaries shall submit to the Customs Service an application that shall contain, at least, the following information:

• a)

  Name, business name or corporate designation and other details of the applicant and its legal representative, as applicable;

• b)

  Precise indication of the activities to which it will dedicate itself;

• c)

  Address or means to receive notifications concerning the application; and d) Tax domicile and, as applicable, address of its principal offices or facilities.

Attached documents. Depending on the type of auxiliary for which authorization is required, the following documents shall be attached to the application, among others:

• a)

  In the case of legal entities, notarial or registral certification of the articles of incorporation;

• b)

  In the case of natural persons, certified or legalized copy of the respective identification document and, in case of being registered as individual merchants, certified or legalized copy of the document that certifies them as such;

• c)

  Original or certified or legalized copy of the document that accredits the representation, as applicable;

• d)

  In the case of natural persons, a statement under oath before a notary, of having no employment relationship with the State or its institutions. The above statement shall not be required in the case of public employees and officials authorized to manage the customs clearance of merchandise consigned to the institutions to which they belong;

• e)

  Certified or legalized copy of the identification document of the legal representatives and subordinate personnel who will act before the Customs Service; and f) Certification issued by the competent authorities that it is current in the payment of all its tax obligations.

Inspection of facilities. In the case of auxiliaries that, by the nature of their functions, have custody of merchandise subject to customs control, prior to issuing the respective authorization, the Customs Service, with the assistance of another competent authority if necessary, must inspect the facilities in order to verify compliance with security measures and other conditions required by this Regulation.

Coverage of the guarantee. The guarantee rendered by the auxiliary shall be responsible for any act that generates administrative and tax liability that the auxiliary or its accredited personnel contracts with the Customs Service, when it has such personnel. The guarantee instrument must include, in express form, a clause in the terms indicated in the preceding paragraph and other related aspects that the Customs Service may establish.

Update and renewal of the guarantee. Guarantees must be renewed annually and presented within fifteen days before their expiration. The amounts established in this Regulation for each auxiliary refer to minimum amounts, which may be increased by the Customs Service in accordance with the volume of operations, taxes paid or declared, and other parameters established by the Customs Service, registered during the previous fiscal period. The customs services, to facilitate control mechanisms, may establish periods for the presentation of the guarantee in accordance with the type of auxiliary.

Execution of the guarantee. Once the tax liability of the auxiliary to the Treasury is determined, the guarantee shall be executed in accordance with Article 232 of this Regulation.

Non-return of the guarantee. In no case shall the guarantee be returned if there is a pending proceeding intended to determine the tax liability of the auxiliary or its personnel. If the proceeding is ongoing and the guarantee is approaching expiration, the Customs Service, as a precautionary measure, may require its renewal or proceed to its execution.

Other guarantee instruments. Auxiliaries may guarantee their operations to the satisfaction of the Customs Service by means of bank guarantees, bonds, or insurance issued by authorized institutions in each State Party, which must be of immediate convertibility. The guarantees shall be kept in custody of the competent office of the Customs Service, in a banking institution or another institution that provides such custody services under conditions satisfactory to the Customs Service.

Authorization procedure. Once the application is presented, the Customs Service shall verify compliance with the requirements established in the Code and in this Regulation, and shall issue the authorization or rejection resolution, as appropriate, within a period of one month counted from the moment the file is in condition to be resolved. In case the petition has been presented in defective form, a period of ten days shall be granted for correction. After such period expires without the applicant complying with what was required, the filing of the proceedings shall be ordered without further proceedings. If the application presents errors or omissions that are incurable in the judgment of the Customs Service, the superior authority of the Customs Service shall issue the respective denial resolution, which shall be notified to the applicant. If the application is denied, the petitioner may file administrative appeals in accordance with the Code and this Regulation. Once authorization is granted and the operating guarantee is presented when the Customs Service requires it, the applicant shall be registered as an auxiliary in the corresponding registry, assigning an identification code that shall serve to conduct any action related to the exercise of their functions.

Disqualification. Causes for disqualification include, among others:

• a)

  That the auxiliary acquires the status of public official or employee;

• b)

  The expiration of the operating guarantee;

• c)

  The non-compliance with tax obligations duly notified and not paid within the established period; or d) The failure to present the annual certification of tax clearance issued by the competent authorities. Disqualification shall remain in effect as long as the cause that originated it persists.

Communication of voluntary permanent or temporary cessation of operations. If the auxiliary voluntarily decides to cease permanently or temporarily its operations, it must communicate this in advance to the Customs Service and comply with the obligations and procedure established for each auxiliary. In no case shall the permanent or temporary cessation of operations be authorized if the auxiliary maintains pending customs tax obligations, fines, interest, and other charges with the Treasury.

Resumption of operations. The auxiliary that having voluntarily ceased its functions may be reinstated provided it complies with the requirements and obligations established for each auxiliary.

General Obligation. Auxiliaries must preserve the documents referred to in literal b) of Article 21 of the Code, in adequate form and with modern filing techniques and indicate to the Customs Service the place where they are kept and any changes related thereto. Likewise, they must comply with the procedures and control standards that the Customs Service may establish. SECTION II - REGISTRY OF AUXILIARIES

Registry. Persons authorized as auxiliaries shall be registered in the Registry of Auxiliaries maintained for this purpose by the Customs Service. Registration shall not take effect unless the person has posted a bond for their liability to the Treasury. The Customs Service must notify the customs offices where the auxiliary will provide its services of the registry information related to it. Registered auxiliaries that require access to the Customs Service information systems must comply with the requirements referred to in Article 171 of this Regulation.

Registry information. The Registry of Auxiliaries shall contain the following information:

• a)

  Name of the authorized person, their nationality, tax domicile and other personal information, in the case of a natural person; name, designation, or trade name and its tax domicile when it is a legal entity and that of its legal representative;

• b)

  Number and date of the authorization resolution;

• c)

  Consecutive registration number;

• d)

  Tax Identification Number;

• e)

  Identification of accredited personnel;

• f)

  Type of guarantee rendered and its amount, with indication of the number, place, and date of the respective guarantee instrument, as well as the period of validity and, where applicable, the trade name of the guaranteeing institution; and g) Definitive or pending proceedings regarding sanctions and convictions imposed on the authorized person and accredited personnel, in the administrative or judicial proceeding, as a result of their management.

Obligation to report changes. The auxiliary is obligated to communicate to the Customs Service any change that affects the accuracy of the information contained in the Registry of Auxiliaries regarding it, including that of its accredited personnel. In case of change of tax domicile, main offices or facilities, and legal representative, the auxiliary must communicate it to the Customs Service. In both cases, the communication must be made within a period of three days, counted from the date the change took place.

Records. Auxiliaries shall maintain the records referred to in

, subsection a) of the Code, in the form and by the means established by the Customs Service.

Identification Card. The auxiliaries and accredited personnel who manage directly before the Customs Service shall carry an identification card that accredits them as such. The identification card shall be prepared by the auxiliaries in accordance with the information, parameters, and uniform format that the Customs Service determines in each case. SECTION III OF THE CUSTOMS AGENT

Specific Requirements. In addition to the general requirements established in this Regulation, the natural person who requests authorization to act as a customs agent shall accredit, among others, the following: a) Be a national of any of the Member States; and b) Possess the academic degree of bachelor's degree in customs matters; or c) Possess an academic degree of bachelor's degree in other disciplines of study, in which case the applicant shall accredit a minimum of two years of experience in customs matters. In the cases of subsections b) and c) of this Article, the Member States may apply a psychometric examination to the interested party.

Examinations. If the application complies with the required conditions or if errors or omissions have been remedied, the applicant may be subjected to a psychometric examination when this is required by the Customs Service and to a competence examination when applicable. The customs services may agree with public or private national institutions of higher education that they may administer to the applicants the psychometric and competence examinations referred to in this Article. In these cases, the Customs Service shall provide the public or private national institution of higher education with the material on which the questions shall be based that will serve as the basis for the preparation of the documents containing the examinations to be administered, which shall constitute a test bank that shall remain in the custody of the national institution of higher education.

Psychometric Examination. For the administration of the psychometric examination, the applicant shall be notified of the place, time, and date for its administration. If the result of the psychometric examination administered to the applicant is not satisfactory, the Customs Service shall issue a reasoned resolution, denying their request for authorization as a customs agent.

Competence Examination. If the result of the psychometric examination is satisfactory, if it has been administered, the competence examination shall proceed. The Customs Service shall notify the applicant, with at least fifteen days in advance, of the place, day, time, and manner in which the examination will be administered, which shall cover the subjects referred to in Article 80 of this Regulation. For the administration of said examination, the Customs Service shall proceed with the formation of the Examining Board, which shall be composed of three officials of the Customs Service, specialized in each of the areas to be evaluated and who from that moment shall constitute themselves as guarantors or monitors of the process. In the case of its administration by the national institution of higher education referred to in Article 77 of this Regulation, it shall proceed to transfer the documents to it, designating the official who shall intervene in said process. The customs services may provide that the competence examination be administered by electronic means in a presential manner. The competence examination shall be mandatory in all cases, except in the Member States that at the date of entry into force of this Regulation, national law permits that those who accredit at any time possessing the academic degree of bachelor's degree in customs matters may exercise, upon request before the competent authority, as a customs agent, in which case the Customs Service shall issue the resolution authorizing the applicant to exercise said function.

Formalities for the Administration of the Examination. On the day, time, and at the place designated for the administration of the competence examination, the applicant, in the presence of the members of the Examining Board, or of the official designated by the Customs Service, in the case it is administered at the national institution of higher education, shall proceed to select the envelopes containing the examinations to be completed, proceeding with the administration of the scheduled examination. The competence examination shall consist of three tests, which shall be written and divided by areas, whose content shall be as follows:

• a)

  Commodity Science, Tariff Classification, and Rules of Origin;

• b)

  Customs Valuation of Goods; and c) Customs Legislation and Procedures.

Approval. The applicant shall be approved if they obtain a minimum percentage of seventy percent of favorable answers in each of the tests administered. Upon completion of the examination grading process, the respective minutes shall be signed, setting forth the result obtained and any other observations deemed pertinent, signed by the members of the Examining Board or the person designated by the Customs Service, as applicable, whose certification shall be sent within the fifteen days following the signing of the minutes, together with the respective file, to the superior authority of the Customs Service for the issuance of the resolution that corresponds.

Notification. The resolution issued by the Customs Service shall be notified to the interested parties personally. It may also be notified by electronic transmission, or by means of lists placed at the headquarters of the Customs Service when the resolution is favorable to the applicant, in which case the interested parties shall be deemed notified after five days counted from the placement of the same.

Review. In the event that the examination grade is unfavorable for the applicant, they may request before the superior authority of the Customs Service, within the period of three days from the notification of the resolution, that the Examining Board perform a review of the same. The Examining Board shall have a period of fifteen days to perform the review of the examination. The result of the review shall be set forth in minutes, whose certification shall be sent to the superior authority of the Customs Service for the issuance of the corresponding resolution.

Guarantee. In accordance with what is established in subsection g) of Article 21 of the Code, the person authorized to act as a customs agent shall constitute a guarantee, in accordance with what the Customs Service of each Member State determines, in which case it may not be less than twenty thousand Central American pesos or its equivalent in national currency.

Operational Requirements. Once authorization is granted, the customs agent shall comply with the following operational requirements:

• a)

  Provide proof from the Customs Service that they have the necessary equipment to perform clearance by electronic transmission;

• b)

  Provide the respective guarantee in accordance with what is established by the Customs Service;

• c)

  Have the confidential access key and user code granted by the Customs Service, and the private and public keys granted by a certifier authorized by said Service, which allow them to certify the transmission of declarations, electronic documents, and electronic or digital signature, when applicable; and d) As the case may be, accredit the personnel who will represent them in the different customs houses where they will provide their services.

Specific Obligations. In addition to the obligations established by the Code and this Regulation, customs agents shall have, among others, the following:

• a)

  Comply with and ensure compliance with the legal, regulatory, and procedural norms that regulate the customs regimes in which they intervene;

• b)

  Have the necessary equipment to perform clearance by electronic transmission;

• c)

  Act, personally and habitually, in the activities proper to their function, without prejudice to legally established exceptions;

• d)

  Receive annually an update course on matters of technique, legislation, and customs integrity, taught by the corresponding Customs Service or through training programs executed by authorized institutions at the national or regional level;

• e)

  Represent their client, diligently and with strict adherence to the customs legal regime;

• f)

  Have offices open in the customs territory; and g) Give notice and, when applicable, deliver to the Customs Service the original documents or magnetic files as the case may be, as well as the information established by regulation for the regimes in which they intervene in the cases of cessation of their operations.

Non-intervention of the Customs Agent. The intervention of the customs agent shall not be necessary in the modalities, operations, and procedures indicated as follows:

• a)

  When these are customs operations performed by the government and its departments, the municipalities, and the autonomous or semi-autonomous institutions of the State;

• b)

  When the goods subject to customs operation or procedure are found in any of the following conditions: i) Are covered by a customs form of a Central American, bilateral, or multilateral free trade agreement; ii) Small shipments without commercial character; iii) Are received or cleared through the international postal system without commercial character; or iv) Have been received through express delivery or courier systems and comply with the norms of this modality;

• c)

  Baggage of travelers and goods other than baggage;

• d)

  Those performed by legal entities represented by a special customs representative;

• e)

  Stores for ships;

• f)

  Relief shipments;

• g)

  Samples without commercial value;

• h)

  Non-commercial imports when their value does not exceed one thousand Central American pesos; and i) Other modalities, operations, and procedures expressly designated in this Regulation.

Optional Intervention of the Customs Agent. Absent a contrary legal provision, the intervention of the customs agent shall be optional in the following cases:

• a)

  Definitive exports;

• b)

  Temporary export with reimportation in the same state;

• c)

  Free trade zones;

• d)

  Customs warehouse;

• e)

  Temporary export for passive improvement;

• f)

  Temporary admission for active improvement; and g) Other regimes expressly designated in this Regulation.

Personal Nature of Authorization. The authorization to operate as a customs agent is personal and non-transferable and of indefinite duration. Such agent may only be represented by authorized assistants, in accordance with the requirements and for the functions legally established by the Customs Service.

Legal Representation. The customs agent is the legal representative of the principal for purposes of customs clearance proceedings and notifications and the acts derived therefrom. The declaration of merchandise presented or transmitted electronically by a customs agent shall be presumed to have been made with the consent of the owner or person with free disposal of the merchandise. The same presumption shall apply to the case of the special customs attorney and the customs carrier when applicable.

Responsibility. The customs agent shall be jointly and severally liable with the declarant to the Treasury in the terms of Article 23 of the Code.

Substitution. Once the declaration of merchandise has been accepted, the principal may not substitute the mandate conferred upon the customs agent, except for reasons of force majeure duly proven and accepted by the superior authority of the Customs Service.

Subrogation. The customs agent that makes payment of duties and taxes, interest, fines and other charges on behalf of the principal shall be subrogated in the privileged rights of the Treasury for the amounts paid. For that purpose, the certification of indebtedness issued by the superior authority of the Customs Service shall constitute an enforceable title to exercise any of the corresponding actions.

Permanent Cessation of Operations. When the customs agent voluntarily requests permanent cessation of operations, the agent must communicate this to the Customs Service for authorization, with one month's notice prior to cessation.

Temporary Cessation of Operations. When the customs agent voluntarily requests temporary cessation of operations, the agent must communicate this to the Customs Service for authorization. When the cessation is for a period of three months or less, notice must be given at least eight days in advance. When the cessation is for a period greater than three months, notice must be given at least fifteen days in advance.

Prior Proceedings. In the case of Articles 94 and 95 of this Regulation, if there are pending customs tax debts to be paid, prior to authorization of cessation, the Customs Service shall initiate the pertinent administrative and judicial proceedings for their collection.

Resumption of Operations. In the case of permanent cessation of operations, the customs agent may request resumption of operations for which the agent must comply with what is established in Article 85 of this Regulation.

Assistants of the Customs Agent. For purposes of what is established in the third paragraph of Article 22 of the Code, the customs agent must accredit to the Customs Service the persons who will represent the agent in customs management. For such purpose, the agent must demonstrate the existing employment contract and comply with the other requirements that the Customs Service of each Member State establishes. The customs agent must inform the Customs Service immediately of the termination of the employment or contractual relationship of the accredited persons. The assistants of the customs agent shall be subject to the disqualification established in paragraphs a) and c) of Article 67 of this Regulation.

Classes of Carriers. For purposes of Article 24 of the Code, customs carriers consist of:

• a)

  International maritime, air and land transport companies that directly effect the arrival, departure, transit, transfer or transhipment of merchandise to, from or through the customs territory;

• b)

  International transport agents who act in representation of international transport companies;

• c)

  The internal land carrier that conducts transit of merchandise through the customs territory of a Member State;

• d)

  The maritime carrier that provides cabotage services through the customs territory of a Member State;

• e)

  The air carrier that conducts transit of merchandise through the customs territory of a Member State; and f) The multimodal transport operator.

Request for Authorization. Customs carriers must request authorization from the Customs Service, in accordance with the requirements indicated in Articles 56 and 58 of this Regulation. In addition to the documents indicated in Article 59 of this Regulation, the following shall be required according to the class of carrier involved:

• a)

  Legalized photocopy of the commercial license, when applicable;

• b)

  Legalized photocopy of the circulation card or document of each means of transport that is desired to be registered;

• c)

  Certificate of registration with the Transportation Authority of the Member State or the competent institution, as applicable; and d) Others that the Customs Service deems appropriate.

Carrier Not Owner of the Means of Transport. In the case that the means of transport is not registered in the name of the applicant, the applicant must prove the right of possession over it, through a certified public deed, or if it is leased must demonstrate this with the respective contract. In both cases, a special clause must be included that allows the Customs Service to apply provisions relating to the guarantee indicated in this Regulation.

Authorization Procedure. Upon completion of the authorization procedure referred to in Article 66 of this Regulation, the Customs Service shall proceed to register the company as a customs carrier and the means of transport when applicable, that are used for customs transit, which must contain the following information:

• a)

  Name, trade name or designation of the auxiliary;

• b)

  Description of the land vehicle: type, year, model and brand, capacity, engine displacement, license plates or registration number, motor, chassis number and serial number; and c) Any other information that the Customs Service establishes.

Specific Obligations. In addition to the obligations established by the Code and this Regulation, customs carriers shall have, among others, the following:

• a)

  Transmit electronically or by other authorized means, in advance of the arrival of the means of transport, the cargo manifest, passenger list and other legally required information;

• b)

  Deliver merchandise at the customs office of destination and, when applicable, move it to the place authorized or designated by the Customs Service;

• c)

  Be responsible for compliance with all obligations that the customs transit regime imposes on them, when applicable, including payment of corresponding duties if the merchandise does not arrive in its entirety at destination;

• d)

  Issue the title representing merchandise;

• e)

  Communicate by the means established by the Customs Service the differences found between the quantity of packages actually unloaded or transported and the quantities declared, packages damaged or harmed as a consequence of maritime or air transport and any other circumstance affecting the declarations made;

• f)

  In the case of land transit, declare the transit, transport merchandise through legal routes and deliver it at the authorized location, within the established timeframes;

• g)

  Transport merchandise in means of transport that comply with the technical and customs security conditions established in this Regulation;

• h)

  Communicate to the customs office, with advance notice prior to the arrival of the transport unit, the existence of flammable, corrosive, explosive or perishable merchandise or merchandise that, by its nature, represents a danger to other merchandise, persons or installations, in order to provide special treatment;

• i)

  Keep intact the security devices placed on packages and on means of transport;

• j)

  Permit and facilitate customs inspection of merchandise, vehicles and transport units, their cargo and verification of documents or authorizations that cover them; and k) Assign personnel for loading, unloading, reshipment or transhipment of merchandise. In case of non-compliance with any of the obligations to which the customs carrier is subject, the Customs Service shall apply the corresponding sanctions.

Responsibility. Customs transporters shall be responsible for complying with the obligations resulting from the receipt, departure, and air, maritime, or land transport of transport units and merchandise, as appropriate to the means of transport used, in order to ensure that they arrive at the authorized destination or depart from it intact, without modifying their nature or packaging, until effective delivery and due receipt by the authorized auxiliary, according to the provisions of the Customs Service and other authorities regulating transit and public security.

Guarantee. The customs services of the State Parties shall establish the form and types of guarantee that must be granted for internal customs transit operations.

Coverage of the guarantee. The customs services may use in a harmonized manner the same class of guarantee to ensure the duties of merchandise in transit. SECTION V OF THE CUSTOMS DEPOSITARY

Authorization of warehouses. Customs warehouses may be authorized by the superior authority of the Customs Service, in accordance with the needs of each State Party. Customs warehouses may be public when they can be used by any person to deposit merchandise and private when they are destined for the exclusive use of the depositary and those persons authorized by the Customs Service at the request of the depositary.

Establishment and operation. Persons interested in establishing and operating a customs warehouse shall submit a written request to the Customs Service, containing the data indicated in Article 58 of this Regulation and accompanied by the documents indicated in Article 59 of the same.

Documents. In addition to the documentation related in

of this Regulation, the following must be evidenced:

• a)

  The ownership or right of use of the facilities for which authorization is sought, attaching the respective documentation;

• b)

  Plan of the existing or to be built facilities for the storage, custody, and preservation of merchandise, indicating the location, boundaries, square meters of surface area, and access roads;

• c)

  Report, in original, issued by an active licensed civil engineer or architect, regarding the type of construction of the facilities intended for customs warehouse and suitable for the storage, custody, and preservation of merchandise according to the type or class of merchandise to be stored, fundamentally if it involves merchandise of an inflammable nature, toxic or that could cause damage to health or the environment. Likewise, the report must indicate that it has the necessary areas for the receipt, permanence, operation, and maneuvering of transport means, without prejudice to the inspection referred to in Article 60 of this Regulation; and d) Indication of the control system for the movement and existence of merchandise and description of the automated equipment with which such controls shall be conducted.

Prerequisites to authorization. The person requesting authorization to act as a customs depositary must:

• a)

  Have adequate facilities to perform merchandise receipt, storage, inspection, dispatch operations and maneuvering of transport means with a minimum area of ten thousand square meters destined for customs merchandise warehouse activities, which includes a minimum construction section of three thousand square meters;

• b)

  Have sufficient means to ensure the effective custody and preservation of merchandise, in accordance with the location and infrastructure conditions of the warehouse and the nature of the merchandise;

• c)

  When it comes to public customs depositaries, possess the area destined for preliminary examination and immediate verification, which must be at least two hundred square meters;

• d)

  Have the equipment and programs necessary for electronic transmission and exchange of information with the Customs Service of the operations it performs;

• e)

  Designate an appropriate area for the operation of the Customs delegation personnel, when required by the Customs Service, providing furniture, office equipment, and other necessary items to the specific permanent personnel that the Customs Service designates for the performance of merchandise customs control and dispatch duties;

• f)

  Maintain and transmit inventories through electronic systems under the conditions and terms established by the Customs Service;

• g)

  Provide reports of the operations requested by the Customs Service; and h) Others that the Customs Service of each State Party establishes. When the control measures and conditions established by this Regulation are met, the Customs Service may authorize the provision, in those facilities, of services complementary to dispatch and merchandise storage, provided that the service provider has the necessary authorizations or concessions. In the same terms, customs depositaries that simultaneously possess the general deposit warehouse concession may provide both services, with the condition of maintaining warehouses, patios, or other areas as well as controls, operations, inventories, inflows and outflows to or from the warehouse that are kept separate.

Term for operating a customs warehouse. The authorization term to establish and operate a customs warehouse shall be fifteen years, renewable for equal and successive periods at the request of the depositary, which shall be granted after evaluation by the Customs Service of the performance of activities carried out by the depositary.

Guarantee. For the purposes of subsection g) of Article 21 of the Code, the guarantee for customs warehouses shall be established in favor of the Customs Service for an amount not less than one hundred fifty thousand Central American pesos or its equivalent in national currency. The amount of the guarantee shall be updated annually.

Additional requirements to begin operations. Prior to commencement of operations, the customs depositary must comply with the following requirements:

• a)

  Establish the communication links required by the Customs Service for the transmission of information relating to operations executed within the customs warehouse regime;

• b)

  Have the guarantee fixed by the Customs Service in the authorization document established;

• c)

  Acquire, install, maintain, and make available to the customs authorities the security equipment, in accordance with the type of operation, location of facilities, and fiscal risk inherent to the merchandise and applicable customs regimes, in accordance with the determinations established by the Customs Service;

• d)

  Have the confidential access key and user code granted by the Customs Service, and the private and public keys granted by a certifier authorized by the Customs Service, when applicable;

• e)

  Be registered as an auxiliary in the Registry of Auxiliaries of the Customs Service; and f) Others that the Customs Service of each State Party establishes.

Conditions of data transmission equipment. For the purposes of subsection d) of Article 21 of the Code, customs warehouses must have computer equipment with adequate technology and data transmission capacity that allows their connection with the Customs Service, as well as maintain a permanent and simultaneous record of merchandise operations in customs warehouse at the moment they are received or withdrawn, which must be electronically linked with the aforementioned unit. For the purposes of this Article, the Customs Service shall establish the conditions that must be observed for the installation of the equipment, as well as carry out the registration of operations performed and the connection of the computer equipment of customs warehouses with the Customs Service.

Specific obligations. In addition to the obligations established by the Code and this Regulation, customs depositaries shall have, among others, the following:

• a)

  Receive, store, and safeguard the merchandise deposited with them;

• b)

  Maintain and inform the Customs Authority regarding merchandise received, withdrawn, or subject to other operations permitted in the form and conditions established by the Customs Service;

• c)

  Answer directly to the Customs Service for the storage, custody, security, protection, and preservation of merchandise deposited in their premises from the moment of receipt;

• d)

  Answer to the Treasury for the payment of customs tax obligations of damaged, lost, or destroyed merchandise, except when these circumstances were caused by act of God or force majeure;

• e)

  Allow merchandise to leave the customs warehouse, once the requirements and legal formalities established for the requested regime or operation have been met, prior to authorization by the Customs Service;

• f)

  Inform the competent customs authority of damaged, lost, destroyed merchandise and other irregularities occurring during storage;

• g)

  Communicate through the means established in the Customs Service the differences found between the quantity of packages received and the quantities declared and any other circumstance affecting the merchandise;

• h)

  Designate facilities for preliminary examination or immediate verification of deposited merchandise. Such facilities must meet the specifications indicated by the Customs Service;

• i)

  Designate an area for the storage of merchandise subject to abandonment or seized;

• j)

  Delimit the area for conducting permitted activities;

• k)

  Keep a record of all persons presenting with merchandise lift authorizations, as well as all vehicles used to transport merchandise upon entry and exit from the customs warehouse;

• l)

  Verify the validity of merchandise lift authorization, in accordance with the means defined by the Customs Service;

• m)

  Present to the corresponding customs authority, through the authorized means, during the first fifteen days of each month, a list of merchandise that in the previous month has completed one year of being received in storage or has resulted in abandonment;

• n)

  Comply with the technical and administrative provisions regarding location, stowage, storage, and identification of merchandise under their custody; o) Receive and safeguard merchandise that the Customs Authority sends under special circumstances; p) Make merchandise immediately available to the entitled party, prior to the requestor's request and authorization of the Customs Authority; and q) Others that the Customs Service establishes.

Permitted activities. Merchandise under customs control in the customs warehouse may be subject to the following handling:

• a)

  Consolidation or deconsolidation;

• b)

  Division and classification of packages;

• c)

  Packing, unpacking, and repacking;

• d)

  Packaging;

• e)

  Marking, remarking, and labeling;

• f)

  Placement of commercial information statements;

• g)

  Extraction of samples for analysis or registration; and h) Any other related activity, provided that it does not alter or modify the nature of the merchandise. The Customs Service may authorize that the aforementioned handling be provided by customs depositaries or by any natural or legal person under their responsibility.

Cessation of operations. Authorization to operate a customs warehouse shall cease for the following causes: a) Due to expiration of the authorization term to operate the customs warehouse, without the extension having been requested before expiration or within thirty days following expiration; or b) Due to voluntary resignation of the depositary, in which case it must be duly justified and accepted by the Customs Authority. In this case, it must notify the Customs Service at least one month prior to cessation. Once it is determined that there are no pending obligations with the Tax Administration, the Customs Service shall authorize the request, proceed with the temporary or permanent cessation of the concession, and make the annotations in the respective registry. In both cases, the depositary must make known to the Customs Service the existence in its facilities of merchandise subject to customs control, so that the Customs Authority proceeds to verify its existence and order, if appropriate, its transfer to another customs warehouse. In case of pending tax debts to be paid, the Customs Service shall initiate the pertinent administrative and judicial proceedings for their payment.

Other auxiliaries. In accordance with literal d) of Article 19 of the Code, the following shall be considered as auxiliaries, among others: temporary customs warehouses, special customs representatives, express delivery or courier companies, cargo consolidation or deconsolidation companies and duty-free shop operators. Likewise, companies subject to home delivery regimes or modalities, free zones, active improvement, and others as provided by the Customs Service shall be considered as auxiliaries.

Special customs representative. A natural person designated by power of attorney in a public deed by a legal entity to be responsible exclusively, in its name and representation, for the customs clearance of merchandise consigned to it shall have the character of a special customs representative, who must be authorized as such by the superior authority of the Customs Service, upon compliance with the requirements and conditions established in this Regulation. Employees of public institutions, municipalities, diplomatic or consular missions or international organizations and users of free zones shall also have the status of special customs representatives, once they have complied with the requirements established in this Regulation. The legal entities referred to in the first paragraph of this Article shall be directly responsible for the acts carried out on their behalf by the special customs representative.

Express delivery or courier companies. Express delivery or courier companies are persons legally established in a State Party whose principal business or activity is the provision of international express transportation services to third parties by air or land of correspondence, documents and shipments of merchandise that require immediate transfer and disposition by the recipient.

Cargo consolidation and deconsolidation companies. Cargo consolidators are persons who, in their business, engage principally or incidentally in contracting, in their own name and for their own account, international merchandise transportation services which they themselves group, destined to one or more consignees. Cargo deconsolidators are persons to whom the master transport document is consigned whether it be an air waybill, master bill of lading or bill of lading and whose purpose is to deconsolidate the cargo at its destination.

Duty-free shop operators. Duty-free shop operators are entities that, as a consequence of special laws, are given the status of duty-free shops, in whose premises merchandise may enter with suspension of duties and other charges that may be applicable.

Home delivery dispatch companies. Home delivery dispatch companies are legal entities that may be authorized by the Customs Service to receive directly in their own facilities merchandise to be cleared which will be used in the commercialization of merchandise or in the industrial process, whether in the manufacture, preparation or transformation of merchandise into final goods or compensatory products.

Establishment of temporary customs warehouses. Temporary customs warehouses are constituted as places authorized by the superior authority of the Customs Service for the temporary storage of merchandise, while awaiting the presentation of a declaration of destination to a regime or the application for a customs operation.

Authorization. The Customs Service may authorize the operation of temporary customs warehouses when they are located on properties that adjoin the primary zone of maritime or terrestrial ports of entry of the States Party. It is within the authority of the customs services, in justified cases, to authorize the establishment of temporary warehouses located on properties that do not adjoin primary zones, located within a radius not exceeding fifteen kilometers from such zones.

Location of properties, warehouses or yards in the customs primary zone. Properties, warehouses or yards located in the customs primary zone of ports and airports shall be considered, for purposes of legal consequences, as temporary customs warehouses.

Obligations. The temporary customs warehouseman shall comply with the obligations established in Article 115 of this Regulation, except as provided in literal m).

Supplementary application. The conditions, requirements, obligations and procedures for authorization and operation of temporary customs warehouse and other provisions shall be governed by the provisions applicable to the customs warehouseman, except as provided in Articles 107 and 116 of this Regulation.

Duty-free shops. Entities that, as a consequence of special laws, are given the status of duty-free shops shall be subject to the obligations indicated in this Section and in their special laws.

Registration. The Customs Service shall require from entities that have obtained authorization to operate as duty-free shops the information for their registration in the Auxiliaries Registry.

Obligations. Entities registered in the Auxiliaries Registry as duty-free shop operators shall comply with the following obligations:

• a)

  Constitute before the Customs Service, when applicable, a guarantee for an amount not less than one hundred fifty thousand Central American pesos or its equivalent in national currency, covering the amount of duties to which merchandise entering the duty-free shops could be subject;

• b)

  That merchandise arrives at the duty-free shop consigned in the name of the shop operator;

• c)

  That merchandise entered into duty-free shops be sold exclusively to passengers in transit and those leaving the customs territory, or entering as the case may be, after verification of passenger status, accredited with passport or other authorized travel document and tickets respectively, with the invoice issued by the operator containing the passport number or other authorized document and the flight code indicated on the boarding pass or ticket, when applicable;

• d)

  Develop a special control system by type and class of merchandise through electronic means available to the corresponding customs authority, which allows establishing the quantity of merchandise entered in their warehouses and those sold to passengers, which allows their easy clearance according to the requirements established by the Customs Service;

• e)

  Maintain and send to the corresponding customs authority records of merchandise admitted, stored, sold or subject to other movements according to the formats and conditions established by the Customs Service;

• f)

  Present to the corresponding customs authority a merchandise declaration in the form indicated by the Customs Service to verify sales and clearances of merchandise arriving at their warehouses;

• g)

  Have sufficient and adequate surveillance means to ensure effective custody and preservation of merchandise, in accordance with the conditions of location or infrastructure of the warehouse and the nature of the merchandise, as provided by the Customs Service;

• h)

  Prepare and present to the Customs Service in the month following the end of the fiscal year, the results of the inventories duly certified by an authorized public accountant, which shall include a report of merchandise entered and exited in said period;

• i)

  Allow and facilitate the inspection work of the Customs Authority;

• j)

  Be responsible for the payment of customs tax obligations for merchandise that is not found and has been declared as received; and k) Any other obligations established by the Customs Service.

Entry and exit of merchandise. For the entry of merchandise into duty-free shops, the corresponding merchandise declaration shall be presented; and the exit from such premises shall be verified with the invoices issued to the persons to whom the merchandise is sold. Once merchandise has been entered into a duty-free shop and the operator transfers it to another user of this regime, this operation must be duly authorized by the competent authority and comply with the established procedures.

Samples without commercial value. Samples without commercial value presented in miniature size and packaging, fragrance testers, creams and cosmetics, blotters or blotting paper, posters, printed materials and others used as advertising may be brought in and distributed in the duty-free store, which shall only be part of the inventory and shall not be subject to merchandise declaration or commercial invoice.

Responsibility. The natural or juridical persons authorized to operate duty-free stores shall be responsible for them, and shall be liable for the receipt, presence and preservation of merchandise, as well as for the corresponding duties not collected, in case of loss or removal of merchandise without supporting documentation.

Destruction of merchandise. Merchandise that is not suitable for use or consumption, upon prior opinion of the competent authority where applicable, may be destroyed at the request of the responsible party of the duty-free store, with authorization and under supervision of the Customs Service. The cost of such destruction shall be borne by the duty-free store operator.

Jurisdiction. Duty-free stores, for the purpose of the entry and exit of merchandise, shall function under the jurisdiction of the customs office closest to the place of operation, without prejudice to the subsequent supervision that may be conducted by the supervisory organs of the Customs Service. SECTION IX OF SPECIAL CUSTOMS AGENTS

Application. The Customs Service shall accept the application for a natural person designated by a juridical person to act on its behalf and representation as a special customs agent, if the interested juridical person meets the requirements to submit an application with the requirements indicated in

Article 58 of this Regulation, indicating furthermore, a brief description of the merchandise and tariff chapters that constitute the normal course of its activity and attaching thereto the documents listed in Article 59 of the same, along with a certified copy of the first certified copy of the public deed containing the special power of attorney with representation, duly registered with the respective registry of the State Party, and the following requirements shall be verified for the natural person on whose behalf the authorization is requested:

• a)

  To be a national of any of the State Parties;

• b)

  To possess a bachelor's degree in customs matters or to possess a bachelor's degree in other fields of study, in which case the applicant must demonstrate a minimum of two years of experience in customs matters;

• c)

  To have a labor or contractual relationship with the grantor and that the latter grant him power before a notary. In the case of public institutions, the power shall be granted by designation made by the head of the granting institution;

• d)

  Not to have the status of public official or member of the military in active service, except in the case where the grantor is a public institution. To this effect, a sworn statement shall be presented before a notary; and e) Other requirements as established by the Customs Service. The Customs Service may waive the requirements established in subsection b) of this Article.

Application for State entities and diplomatic missions. When the application referred to in Article 137 of this Regulation is submitted by State entities, their departments, municipalities, autonomous and decentralized state entities, the application must be signed by the titular authority as established by law, omitting the general information of the applicant entity. In the case of a diplomatic mission, consular office or international organization, the application shall be submitted through the Ministry of Foreign Affairs, complying with the legal requirements, omitting the general information of the applicant entity. In both cases, the following documents shall be attached:

• a)

  Certified copy of the neighborhood identity card or identification document of the person on whose behalf the authorization is requested;

• b)

  Certificate of the labor or contractual relationship between the requesting entity and the person on whose behalf the authorization is requested; and c) Document containing the designation of the person on whose behalf the authorization is requested, made by the head of the entity, organ, department, municipality, entity or mission.

Examinations. The natural person designated by the juridical person shall undergo psychometric and competence examinations in accordance with the procedure established for customs agents in this Regulation. The competence examination shall focus primarily on the matters referred to in Article 80 of this Regulation, which constitute the normal course of activity of the juridical person in accordance with the description indicated in its application. The Customs Service shall authorize its performance only within the scope of said course of activity. The examination requirement shall not apply to employees of public institutions, municipalities, diplomatic missions, consular offices or international organizations.

Guarantee. No person shall be authorized, recognized, nor may exercise customs activity before the Customs Service as a special customs agent, if the juridical person that proposed him has not guaranteed his responsibility, in accordance with subsection g) of Article 21 of the Code. The guarantee to be constituted shall not be less than twenty thousand Central American pesos or its equivalent in national currency. The guarantee requirement shall not apply to employees of public institutions, municipalities, diplomatic missions, consular offices or international organizations.

Operating requirements. Once the authorization is granted, the special customs agent and the grantor, where applicable, must comply with the following operating requirements:

• a)

  To provide a certificate from the Customs Service that it has the necessary equipment to conduct dispatch by electronic transmission;

• b)

  To furnish the respective guarantee in accordance with what is established by the Customs Service;

• c)

  To have the confidential access code and user code granted by the Customs Service, and the private and public codes granted by an authorized certifier by said Service, which allow it to certify the transmission of declarations, electronic documents and electronic or digital signature, when applicable; and d) Where applicable, to demonstrate the personnel who will represent it at the different customs offices where it will provide its services.

Specific obligations. In addition to the obligations established by the Code and this Regulation, special customs agents shall have, among others, the following:

• a)

  To comply and ensure compliance with the legal, regulatory and procedural norms governing the customs regimes in which they intervene;

• b)

  To receive annually a refresher course on customs technique, legislation and integrity matters, taught by the corresponding Customs Service or through training programs executed by institutions authorized at the national or regional level; and c) To give notice and, when applicable, deliver to the Customs Service the original documents or magnetic files where applicable, as well as the information established by regulation for the regimes in which they intervene in cases of revocation of authorization.

Revocation of authorization. When the labor relationship with the grantor terminates or the latter revokes the power of attorney granted, the grantor must request the Customs Service to revoke the authorization of the special customs agent. Upon receipt of the request, the Customs Service shall immediately proceed to disable the access code of the special customs agent to the Customs Service computer system.

Other employees. For the purposes of what is established in subsection j) of Article 21 of the Code, the special customs agent and the grantor must accredit before the Customs Service the persons who will represent them in their customs management. To this effect, they must demonstrate the labor contract existing with the grantor and comply with other requirements that the Customs Service of each State Party establishes. The special customs agent and the grantor must inform the Customs Service immediately of the termination of the labor relationship of the accredited persons. The disqualification established in subsections a) and c) of Article 67 of this Regulation shall apply to the employees referred to in this article. SECTION X OF RAPID DELIVERY OR COURIER COMPANIES

Application. Companies engaged in the provision of rapid delivery or courier services must request their authorization from the Customs Service, in accordance with the requirements indicated in Article 58 of this Regulation. To this effect, in addition to the documents indicated in Article 59 of this Regulation, the following shall be required:

• a)

  Certified copy of the business license, when applicable;

• b)

  Certified copy of the identification document of the owner of the individual enterprise or the legal representative of the merchant corporation submitting the application;

• c)

  Contract or letter of representation, duly legalized in the country of origin and properly authenticated by the corresponding authorities, that accredits it in the case where the applying company is an agent or representative of an international courier company incorporated abroad. If the document is drawn up in a foreign language, an authenticated translation thereof must be attached. These documents must have been issued within a period of no more than three months prior to the date the application is submitted;

• d)

  Payroll of employees of the international courier company, designated by it, to act before the customs offices of the State Party in the treatment of courier, with their full names and identification document numbers and where applicable the tax registration number card with simple photocopies thereof, as well as a certificate of lack of criminal records for each of them. Said employees must be identified by means of a badge issued by the international courier company; and e) To accredit ownership of the means of transport or the contract for cargo services with international transport companies duly registered with the competent authority, which guarantees the dispatch and rapid delivery of merchandise.

Guarantee. Prior to the commencement of their activities, and once the respective authorization is obtained, international courier or messaging companies, when obligated to do so, shall constitute a guarantee in favor and to the entire satisfaction of the Customs Service, in the amount of a minimum of twenty thousand Central American pesos or its equivalent in national currency.

Requirements and obligations. Rapid delivery companies shall comply, among others, with the following requirements and obligations:

• a)

  Transmit in advance the rapid delivery manifest;

• b)

  Transmit merchandise declarations, which must be duly signed and paid, in electronic form;

• c)

  Retain a copy of the rapid delivery manifest and any other document used in normal operations, as proof of delivery of dispatched merchandise or delivered to the customs warehouse or temporary storage;

• d)

  Present to customs the packages transported under the rapid delivery manifest;

• e)

  Answer to customs for any difference that occurs in quantity, nature, and value of the declared merchandise with respect to what effectively arrived or was shipped; and f) Keep available to the Customs Service the documents that served as the basis for the preparation of the formats for delivery and exit of merchandise.

Communication of differences. When the Customs Service so determines, the rapid delivery or courier company shall transmit or report to the corresponding customs authority the differences that occur in the quantity, nature, and value of the manifested merchandise, with respect to what effectively arrived or was shipped, in accordance with the procedure it establishes. SECTION XI CARGO CONSOLIDATION AND DECONSOLIDATION COMPANIES

Request. Cargo consolidation and deconsolidation companies shall request their authorization from the Customs Service, in accordance with the requirements indicated in Article 58 of this Regulation. In addition to the documents referred to in Article 59 of this Regulation, the following shall be required:

• a)

  Certified photocopy of the commercial license, when applicable;

• b)

  Certified photocopy of the identification document of the owner of the individual enterprise or the legal representative of the requesting commercial company;

• c)

  Contracts or letters of representation from one or more international cargo consolidation companies when domiciled abroad, legalized in the country of origin and with their respective legal approvals. If the document is written in a foreign language, a sworn or official translation thereof to the official language of the Member States must be attached. These documents must have been issued no more than three months prior to the date on which the request is submitted; and d) List of employees of the cargo consolidation or deconsolidation company, as applicable, designated by it, to act before the customs authorities of the Member State, when applicable, with full name, identification document numbers and, where appropriate, tax registration number identification card with simple photocopies thereof. Employees shall identify themselves by means of an identification badge issued by the consolidation or deconsolidation company. In the event that the cargo consolidation or deconsolidation company is part of an international organization of consolidation companies, to comply with the requirement indicated in subsection c) of this Article, it shall be sufficient to verify its affiliation to said organization by means of certification issued by the presidency thereof, in which the list of consolidation companies that make up the entity is stated. Said certification must be authenticated by the competent authorities. Likewise, when the document referred to in subsection c) of this Article is issued in national territory, it must bear a signature legalized by a notary and be accompanied by a photocopy of the document that proves the representation with which its issuer acts.

Guarantee. Prior to the start of their activities, and once the respective authorization has been obtained, the cargo consolidator or deconsolidator, as applicable, when obligated, shall constitute a guarantee in favor and to the entire satisfaction of the Customs Service, for a minimum amount of twenty thousand Central American pesos or its equivalent in national currency. The customs services may determine not to require a guarantee.

Representations. Any change or incorporation of representations of consolidation companies shall be communicated to the Customs Service complying with the requirements indicated in subsection c) of

Article 149 of this Regulation and in the final paragraph of said Article.

Transmission of consolidated or deconsolidated manifest. The carrier shall deliver to the consolidated cargo operator the consolidated bill of lading, in which the consolidator or deconsolidator of cargo appears as the consignee, as applicable, and transmit to the Customs Authority the information relating to that bill of lading. The consolidator or deconsolidator of cargo, as applicable, or its legal representative shall transmit in advance to the Customs Authority the information of the consolidated cargo manifest and deliver copies, when the Customs Service requires it, of as many bills of lading as consignees it registers. SECTION XII HOME DELIVERY SERVICE COMPANIES

Information and additional documents that must accompany the authorization request. In addition to what is indicated in Articles 58 and 59 of this Regulation, the request for authorization as an auxiliary in the home delivery service modality shall accompany the following information and documentation:

• a)

  Commercial level of its activities: retail or wholesale;

• b)

  Identification of its suppliers abroad and its commercial and contractual relationships with them, specifying whether it acts in the capacity of exclusive distributor or not, commission agent, broker or others;

• c)

  Provide a report duly certified by an authorized certified public accountant, of the imports of the last two years, as well as the monthly average, with indication of the description of merchandise, total customs value, weight or volume, unit of measure, tariff classification, origin and amount of duties incurred in the imports made by the petitioner;

• d)

  Describe the merchandise that will be subject to importation under this modality, with indication of its tariff classification, origin and provenance and present a projection of the quantities of merchandise that will be imported under this modality in the following calendar year of operation;

• e)

  Indicate the fiscal benefits, if it receives any;

• f)

  Certified copy or notarized copy by notary or competent authority of the authorized plans of the facilities for receiving and dispatching vehicles, transport units and merchandise; and g) Provide a certified copy of the financial statements of the last two fiscal periods.

Specific requirements and obligations. Home delivery service companies shall comply, in addition to those set for them in this Regulation, with the following obligations:

• a)

  Obtain authorization to operate as an auxiliary;

• b)

  Have adequate facilities authorized by the Customs Service to carry out operations of receipt, storage, inspection and dispatch of merchandise;

• c)

  Allow the Customs Authority access to its facilities, production areas, warehouses and production cost records for the exercise of customs control;

• d)

  Have the guarantee established by the Customs Service in the authorization document; and e) Maintain a minimum annual average of imports with a declared customs value equal to or greater than three million Central American pesos.

Additional obligations. Companies authorized to operate home delivery service shall comply with the following additional obligations:

• a)

  Present to the Customs Service, annually and on the date it sets, the financial statements of the last fiscal period;

• b)

  Present to the Customs Service, annually the updated certifications of authorized certified public accountant referred to in subsection c) of Article 153 of this Regulation;

• c)

  Inform the Customs Service of the changes that occur in fiscal benefits, if it receives any;

• d)

  Provide adequate maintenance to its authorized facilities and keep available to the Customs Authority the personnel and equipment necessary to carry out the inspections and verifications of merchandise and customs declarations;

• e)

  Retain copies of merchandise declarations, commercial invoices, value declarations, certificates or certifications of origin, bills of lading, the report of the conditions of receipt of vehicles and transport units and the report of receipt of merchandise received in its facilities;

• f)

  Maintain a permanent inventory in the computer systems in accordance with the format and requirements established by the Customs Service;

• g)

  Maintain in each new period, the minimum average of operations established in subsection e) of Article 154 of this Regulation; and h) Provide to the Customs Authority the facilities, installations and necessary facilities for the provision of the service, including the computer resources of equipment and telecommunications necessary.

Authorization of facilities to receive vehicles, transport units and merchandise. The Customs Service may authorize one or more facilities of the applicant, taking into account the needs of the consignee and the number of imports carried out at each facility. It shall also consider the security conditions, infrastructure and the human and logistical resources available to the customs authority to carry out customs control of the operations.

Requirements of authorized facilities. For the company authorized to operate home delivery service to be able to receive vehicles, transport units and merchandise, it must have facilities that meet the following conditions:

• a)

  Be located in places that offer adequate conditions for the receipt of vehicles and transport units, in accordance with the provisions established by the Customs Service;

• b)

  The area intended for the unloading and receipt of merchandise must have sufficient space and adequate conditions for the handling of merchandise; and c) The other conditions required by environmental safety and labor standards and those established by the Customs Service for the proper development of the functions of verification and inspection of vehicles, transport units and merchandise.

Guarantee. Companies authorized to operate home delivery service shall render an annual guarantee equivalent to the amount of the average monthly customs tax obligations generated by reason of the importation of merchandise during the previous calendar year. SECTION XIII AUTHORIZED ECONOMIC OPERATORS

Authorized economic operator. For the purposes of Article 28 of the Code, the authorized economic operator shall be subject to the norms of this Regulation, those established by the Customs Service for the facilitation and security in the handling of the merchandise supply chain and the guidelines of the World Customs Organization, to ensure and facilitate global trade.

Regulations of the Customs Service. The norms that the Customs Service establishes for the facilitation and security in the handling of the merchandise supply chain shall contain regulations on:

• a)

  Association. Authorized economic operators that are part of the international supply chain shall undertake a self-assessment process whose effectiveness shall be measured in accordance with safety standards and best practices determined in advance and approved by the Customs Service, with the object of ensuring that their internal policies and procedures offer sufficient safeguards against contingencies that may threaten their shipments and containers until the moment they cease to be subject to customs control at their place of destination.

• b)

  Security. Authorized economic operators shall introduce best security practices determined in advance in conjunction with the Customs Service in their current commercial practices.

• c)

  Authorization. The customs services or other competent entity of the Member State, jointly with the representatives of the interested companies, shall develop mechanisms of validation or accreditation procedures for quality.

• d)

  Technology. Those involved in the international movement of merchandise shall endeavor to preserve the integrity of cargo and containers by allowing the use of modern technologies.

• e)

  Communication. The Customs Service shall periodically update partnership programs with authorized economic operators, in accordance with the regulatory framework of the World Customs Organization, adapting them to mutual needs or requirements and those of global trade. The customs services shall maintain regular consultations with all parties involved in the international supply chain, to discuss matters of mutual interest including customs regulations, as well as procedures and requirements regarding the security of facilities and cargo.

• f)

  Facilitation. The customs services shall work in collaboration with authorized economic operators in order to optimize the security and facilitation of the international supply chain, whose shipments originate from or circulate through the respective customs territories. The customs services shall establish procedures that consolidate and expedite the submission of information required for dispatch, in order to facilitate trade and identify high-risk cargo, in order to apply appropriate measures.

Validating Third Party. The Customs Services may resort to other public or private entities to verify compliance with security standards of the logistics chain. The validating third party must possess adequate experience in the use of certification systems, knowledge of supply chain security standards, sufficient and appropriate knowledge of the different operations carried out by various economic and commercial sectors, and possess sufficient resources to conduct validations in a timely manner. The validating entity must ensure that its personnel designated to conduct the validation procedure is duly trained and qualified.

Application for Authorization as an Authorized Economic Operator. The application to act as an authorized economic operator must meet the requirements of Article 58 of this Regulation. Once the application is submitted, the superior authority of the Customs Service shall issue a resolution within the period of one month, counted from the moment the file is in a condition to be resolved. The authorization of the authorized economic operator shall be discretionary on the part of the Customs Service.

Requirements. In addition to the requirements demanded in the Code and this Regulation for auxiliaries, the applicant must comply with the following:

• a)

  Have more than five years of operation in international commerce;

• b)

  Have sufficient financial availability to fulfill its commitments in accordance with the nature and characteristics of the type of economic activity developed;

• c)

  Demonstrated compliance with the tax and customs legal framework for five consecutive years, and may use as reference the history provided by the competent authorities of the country of origin of the company; and d) Have current certification issued by the validating third party.

Registry. Once the requirements and formalities established in Articles 58 and 59 of this Regulation have been met, the Member State that has authorized an authorized economic operator shall maintain documentary and electronic registration thereof, which must be in line with the computer system of its Customs Service and with the Risk Management Systems of the Customs Services of the Member States. The Member States shall recognize the authorized economic operator of another Member State. The Member States shall exchange information relating to the actions carried out by an authorized economic operator in another Member State.

Obligations. In addition to the obligations of Article 21 of the Code, authorized economic operators must comply with the following:

• a)

  Comply with international security standards in the logistics chain;

• b)

  Have appropriate facilities in accordance with the requirements of the Customs Service;

• c)

  Have a closed-circuit television system with a link to the Customs Service;

• d)

  Determine and document jointly with the Customs Service appropriate security measures and guarantee their compliance and updating;

• e)

  Periodically review the procedures and security measures in accordance with the risk defined for business security;

• f)

  Adopt appropriate security measures regarding information technologies to protect the computer system used from any unauthorized intrusion, as well as take the necessary measures to ensure the security and proper preservation of records and documents related to Customs operations subject to control; and g) Submit the reports required by the Customs Service.

Facilities for the Authorized Economic Operator. Authorized economic operators shall have the following facilities: a) Simplified and rapid procedures to dispatch cargo by supplying a minimum of information; and b) Possibility of being considered as a first option for participation in new programs for cargo processing.

Security Measures. Computer systems must guarantee the privacy, confidentiality, non-repudiation and integrity of the data and documents that are transmitted and stored, as well as the authenticity of the entity that issues them and of the users who use the information systems of the Customs Service. Data and documents transmitted through the use of computer systems may be certified through entities specialized in the issuance of digital certificates that guarantee the authenticity of the messages through which data are exchanged. Such entities must be authorized by the superior authority of the Customs Service or the body that manages and oversees the certification system of the Member State, as applicable. For the purposes of this Chapter, authenticity shall be understood as: the verifiable truthfulness of the identity of the author of a document or communication. Technical authenticity does not exclude the fulfillment of authentication requirements that from a legal point of view the law requires for certain acts or transactions; and by document: the information that has been produced or received in the execution, carrying out or completion of an institutional or personal activity and that encompasses the content, context and structure allowing proof of the existence of that activity.

Contingency. The Customs Service shall establish contingency procedures in cases where computer systems are, totally or partially, out of service. The Customs Service shall be empowered to establish the alternative procedures required for the effective operation of the computer systems.

Technical Specifications. The Customs Service shall establish the minimum technical specifications that the programs (software) and communication links of the auxiliaries must have, including those used for the payment of taxes by electronic means, in accordance with what is provided in Article 37 of the Code.

File Preservation. The Customs Service, the auxiliaries and other authorized persons must preserve, for the period established in Article 21 literal b) of the Code, an electronic backup of the declarations and documents transmitted electronically, preserving their integrity and authenticity, which shall serve as the basis for the purposes that the Customs Service determines.

Access to Computer System. To transmit to the computer system of the Customs Service, it will be necessary to be previously authorized as a user of said system, through the signing of the commitment document that the Customs Service establishes. The Customs Service shall grant to persons authorized by it an access code as a user of said system, who shall register their own access password, which is confidential and non-transferable. When technical conditions permit, the Customs Service shall establish the form of authentication to the document transmission system, always preferring the most secure and in accordance with the computer development of the system. For the purposes of Article 40 of the Code, the Customs Service, through its superior authority, shall issue the regulations required for the submission through computer systems of appeals and proceedings before said Service.

Formalities. As a general rule, Customs regimes shall be formalized through the electronic transmission of data to the Customs Service, consequently the submission and acceptance of the merchandise declaration shall be carried out by this means. Aspects relating to the application of risk criteria, the result of immediate verification, the authorization of release and other procedures related to the dispatch shall also be operated through the related means.

Payment by Electronic Means. Payment of Customs tax obligations shall be made by electronic transfer of funds in the financial system banks authorized by the Customs Service or the competent authority. In this case, the bank that receives the payment of taxes shall be obligated to transmit immediately to the Customs Service or to the corresponding authority all information relating to said payment.

Liability. Banks that transmit to the Customs Service or to the corresponding authority erroneous, incomplete or false information regarding the payment of Customs tax obligations, by virtue of which the Customs Authority authorizes the delivery of merchandise that is under its control, shall have by this fact direct responsibility to the Treasury for the payment of the respective taxes that wholly or partially have not been effectively collected. For these purposes, banks shall have patrimonial liability for the actions of their employees.

Electronic or Digital Certificate and Signature. The structure, conditions and procedures for issuance, suspension, revocation and expiration of electronic or digital certificates and signatures shall be defined by the Customs Services through the Central American Commission on Electronic or Digital Certification.

Presumption of authorship. Any document associated with a certified digital signature shall be presumed, absent proof to the contrary, to be authored by and the responsibility of the holder of the corresponding digital certificate, valid at the moment of its issuance.

Functional equivalence. Any document transmitted by electronic or computer means shall be legally equivalent to documents that are executed, reside in, or are transmitted by physical means. In any provision of the legal order in which reference is made to a document or communication, both electronic and physical documents shall be understood in the same manner. When this Regulation requires the presence of a signature, both digital and handwritten signatures shall be recognized equally.

Responsibilities. Customs officials and employees, auxiliaries, declarants, and other authorized persons shall be directly responsible for all declarations and other acts formalized electronically that have been transmitted or registered in compliance with the security measures established by the Customs Service, without prejudice to other responsibilities established in the Code and this Regulation.

Accredited certifier. Any certifier, in order to issue certificates to the Customs Service, must demonstrate its quality, competence, and technological capacity, in accordance with the procedures established by the Customs Service, and shall be subject to the evaluation and audit procedures that the Customs Service or competent body agrees to perform.

Central American Commission on Electronic or Digital Certification. The Central American Commission on Electronic or Digital Certification shall be composed of technical experts in computer science and law matters from the customs services, whose purpose is to define the general operating policies of the electronic or digital signature system for the customs services. The Commission shall have the following functions:

• a)

  Define and propose the general operating policies and hierarchy of digital certification, observing international standards and best practices on the matter;

• b)

  Interpret or clarify digital certification policies in response to doubts or inquiries from any operator;

• c)

  Evaluate and periodically update the digital certification operating policies, formulating pertinent recommendations if necessary;

• d)

  Promote interoperability between different computer systems in matters of digital signature;

• e)

  Evaluate and recommend the costs of services in accordance with the offers of certifiers;

• f)

  Evaluate and recommend the amount of the bond in the case of private certifiers, when required; and g) Other functions that the customs services of the Member States assign to it.

Requirements for the authorization of certifiers. The request for authorization of the certifier shall be submitted to the customs services or competent body with the following information:

• a)

  Name or corporate name of the applicant, registration data in the corresponding registry as a legal person, domicile and postal address, as well as the corresponding telephone and fax numbers, its Internet website and at least one email address for the receipt of communications;

• b)

  Complete identification of the person or persons who will serve as administrative managers of the certifier before the Customs Service or administering body. Such person or persons must necessarily be the signatories of the application and shall hold the legal or official representation of the applicant;

• c)

  Complete identification of the person or persons who will serve as managers of the certification service operation, if they are not the same as those indicated in the preceding subparagraph. Such shall be understood to mean the person or persons responsible for the operation of the certification authority and registry used in the provision of the service, who will receive and guarantee the confidentiality of the keys, passwords, and/or identification mechanisms assigned to the certifier and who may digitally sign on its behalf;

• d)

  The precise physical address of the establishment or location from which the digital certification services will be provided;

• e)

  Documentation proving that they are qualified to provide digital signature generation and certification services, in accordance with the guidelines that the Central American Commission on Electronic or Digital Certification recommends for this purpose;

• f)

  Certification of legal personality, in the case of private entities, or of appointment, for public officials. Such document must certify, in the first case, that the legal person is duly constituted in accordance with law and in full exercise of its legal capacity;

• g)

  In the case of private entities, proof of having furnished the necessary bond to respond for any eventual liabilities to the public treasury when so required by the Member State, without prejudice to administrative, civil, or criminal liabilities that may be incurred;

• h)

  Certification of the constitutive instrument of the requesting company and its amendments or modifications; and i) Other requirements established by the Customs Service or administering body of each Member State.

Processing of the request. Once the authorization request is received and the established formalities are satisfied, the Customs Service or administering body shall proceed with the corresponding procedure or shall order the correction of errors or omissions in any of the requirements stated in Article 58 of this Regulation, setting a period of ten days for such correction. Once the established formalities are satisfied, its technical and administrative analysis shall proceed.

Functions of certifiers. The authorized certifiers shall have the following powers and responsibilities:

• a)

  Issue the respective certificates;

• b)

  Maintain an updated physical and electronic registry of its subscribers and digital certificates issued by them;

• c)

  Provide the services offered to its subscribers, in strict compliance with the certification policies that it has communicated to the public and that the Customs Service or administering body previously approved;

• d)

  Guarantee the continuous and uninterrupted provision of the certification service;

• e)

  Preserve the information and records relating to the certificates it issues, for no less than five years counted from their expiration or revocation. In the event of cessation of activities, the respective information and records must be submitted to the Customs Service or administering body, which shall arrange for their proper preservation and consultation;

• f)

  Maintain an electronic repository for the parties involved, of the digital certificates issued, continuously accessible online in a continuous and updated manner, in accordance with the guidelines issued by the Customs Service or administering body;

• g)

  Supply, in accordance with the relevant constitutional and legal provisions, the information that the competent authorities request with respect to its subscribers, issued certificates, and digital signature certifications that have been generated;

• h)

  Impart technical and security guidelines to the system subscribers, based on those issued by the Customs Service or administering body;

• i)

  Apply the instructions and directives issued by the Customs Service or administering body for greater security or reliability of the electronic signature system;

• j)

  Provide the Customs Service or administering body with the reports and data required for the adequate performance of its functions and communicate promptly any other relevant circumstance that could prevent or compromise its activity; and k) Other functions established by the Customs Service or administering body of each Member State.

Cost of certification services. The cost of certification services shall be assumed by the subscribers.

Applicable regulations. In addition to the norms contained in this Chapter, the regulations in force in each Member State regarding electronic or digital signatures, digital signature certificates, and digital signature certifiers shall be applicable.

Origin of merchandise. In accordance with Article 43 of the Code, the origin of merchandise shall be governed by the Central American Regulation on the Origin of Merchandise.

Customs valuation. For the purposes of Article 44 of the Code, this Chapter develops the provisions of the Agreement, as well as the provisions arising from the regional legal order in matters of customs valuation of merchandise.

Elements of customs value. In addition to the elements referred to in paragraph 1 of Article 8 of the Agreement, the following elements shall also form part of the customs value:

• a)

  The costs of transport of imported merchandise to the port or place of importation;

• b)

  The costs of loading, unloading, and handling incurred by the transport of imported merchandise to the port or place of importation; and c) The cost of insurance. For the purposes of subparagraphs a) and b) of this Article, the port or place of importation shall be understood to mean the first port or place of arrival of the merchandise in the customs territory.

Tariffs. When any of the elements enumerated in subparagraphs a), b), and c) of the preceding Article are free of charge, not contracted, or are effected by means or services belonging to the importer, their value shall be calculated in accordance with normally applicable tariffs. For the purposes of the preceding paragraph, the importer shall determine the amount to be added for transport, loading, unloading, and handling costs, to the price actually paid or payable for the merchandise subject to valuation, in accordance with the tariffs that the Customs Service shall supply, by the means it establishes. Such tariffs shall be those normally applied by transport companies registered with the Customs Service, for the transfer of merchandise of the same species or class. In the case of the cost of insurance, the importer shall determine the amount to be added to the price actually paid or payable for the merchandise subject to valuation, in accordance with the tariffs that the Customs Service shall supply. Such tariffs shall be those normally applied by insurance companies to merchandise of the same species or class.

Accrued interest. Interest accrued by virtue of a financing agreement entered into by the buyer and relating to the purchase of imported merchandise shall not be considered part of the customs value, provided that:

• a)

  The interest is distinguishable from the price actually paid or payable for such merchandise;

• b)

  The financing agreement has been entered into in writing; and c) When required, the buyer can demonstrate: i. That such merchandise is sold at the price declared as the price actually paid or payable; and ii. That the interest rate charged does not exceed the rate applied to this type of transaction in the country and at the time the financing was provided. This decision shall apply whether the financing is provided by the seller or by a banking entity or other natural or legal person. It shall also apply, where appropriate, in cases where the merchandise is valued using a method other than that based on the transaction value.

Discounts or reductions. For the determination of customs value, discounts or price reductions granted by the seller to the buyer shall be accepted, provided that they are verifiable, quantifiable, do not correspond to previous transactions, and that the price actually paid or to be paid complies with the provisions of Article 1 of the Agreement. SECTION II OF THE DETERMINATION OF CUSTOMS VALUE IN SUCCESSIVE SALES, REIMPORTATIONS AND GOODS THAT ARE NOT SUBJECT TO SALE

Successive sales. In successive sales that take place before the definitive importation of the goods subject to valuation, the value corresponding to the last transaction before the presentation of the goods declaration shall be taken into account; provided that said value complies with the requirements established by the Agreement and this Chapter.

Reimported goods. For the determination of the customs value of reimported goods repaired abroad, the price actually paid or to be paid for all goods incorporated in the repair operations shall be taken into consideration; including delivery expenses abroad, the value or cost of labor in the repair, the amount of profit of the person who performed the work as well as commissions paid or to be paid to third parties, packaging, transport and insurance expenses incurred in the reimportation. When the reimported goods have been repaired within the warranty period granted by the supplier, the customs value shall be determined considering only the expenses and costs not covered by the warranty.

Goods that have not been subject to sale. In the importations of goods that have not been subject to sale, such as goods supplied free of charge, goods imported on consignment, goods imported in execution of a lease or leasing contract, goods supplied as a loan, goods imported for destruction in exchange for compensation from the supplier, and any other importation of goods that have not been subject to sale, the customs value shall be determined in accordance with the valuation methods contained in Articles 2 through 7 of the Agreement, applied in successive order and by exclusion of the previous one. SECTION III OF THE INVERSION OF VALUATION METHODS

Inversion in the application of valuation methods. The inversion in the application of the valuation methods established by Articles 5 and 6 of the Agreement, provided for in Article 4 thereof, shall only proceed when the Customs Authority accedes to the request submitted to it by the importer.

Request for the inversion of methods. In accordance with the provisions established in the preceding Article, Article 4 and paragraph 3 of Annex III of the Agreement, the importer must submit the request to the respective Customs Authority, in writing or by the means established by the Customs Service, indicating the reasons for which he requests the inversion of the valuation methods, within ten days following the date on which the Customs Authority notifies him that it will proceed to apply Article 5 of the Agreement to perform the customs valuation of the goods. The Customs Authority, within the period of ten days following the date of submission of the request, must respond in a reasoned manner accepting or denying the request for inversion of the valuation methods established in Articles 5 and 6 of the Agreement.

Application. The valuation method established in paragraph 2 of

of the Agreement may be applied in accordance with the provisions set forth in said paragraph, whether or not the importer requests it. SECTION IV OF THE APPROXIMATE MOMENT

Approximate moment. The "approximate moment," to which paragraphs 2.b) i) and 2.b) iii) of Article 1 and Articles 2 and 3 of the Agreement refer, is that which does not exceed ninety days, before or after the date of export of the goods subject to valuation; for paragraph 2.b) ii) of Article 1 of the Agreement, it is that which does not exceed ninety days before or after the date of acceptance of the goods declaration; and for paragraph 1.a) of Article 5 of the Agreement, it is that which does not exceed ninety days before the date of acceptance of the goods declaration. The date of export shall be that which appears in the transport document and, in the absence thereof, that which is established by the Customs Service.

Existence of two or more values. When more than one value is available within the approximate moment established in the preceding Article for the application of Articles 2 and 3 of the Agreement, the one corresponding to the date closest to the export of the goods subject to valuation shall be taken, and only when two or more values of the same export date are available shall the lowest be used. SECTION V OF THE CONVERSION OF CURRENCIES

Conversion of currencies. In accordance with Article 9 of the Agreement and Article 20 of the Convention on the Central American Tariff and Customs Regime, when necessary to determine the customs value, the conversion of foreign currencies to Central American pesos and of Central American pesos to the currency of the States Party shall be made in accordance with the exchange rate supplied by the Central Bank of the respective State Party, in effect on the date of acceptance of the goods declaration. SECTION VI OF FAMILY RELATIONSHIP

Family relationship. For purposes of literal h) paragraph 4, Article 15 of the Agreement, persons shall be considered of the same family when they are spouses or relatives within the fourth degree of consanguinity or second degree of affinity.

Release with guarantee. If in the course of the determination of the customs value of imported goods it is necessary to delay the definitive determination of that value, the importer may request the release or dispatch of his goods from customs and, when required to do so by the Customs Service, present a sufficient guarantee that guarantees and covers the amount of the duties to which the goods may ultimately be subject. The Customs Authority shall establish the guarantee based on the values on which it sustains the reasonable doubt.

Forms of constitution of guarantee. The guarantee referred to in the preceding Article may be constituted in the form of a deposit, bond, or any other means established by the Customs Service, that covers the difference in the amount of import duties to which the goods may ultimately be subject. The guarantee in question shall be executed by the Customs Authority when the importer is subject to the corresponding payment and does not make it, or shall be released within thirty days following the date on which the Customs Authority notifies the importer that it has accepted the declared value as the customs value. This is without prejudice to the powers that the Customs Service has to perform verification or determination of customs value ex post, within the period established in the Code. SECTION VIII OF THE VERIFICATION AND INVESTIGATION OF THE DECLARED VALUE

Doubt about data and documents and supplementary information. When the Customs Authority has reasons to doubt the veracity or accuracy of the data or documents presented, it may ask the importer to provide a supplementary explanation, as well as documents or other evidence demonstrating that the declared value represents the total amount actually paid or to be paid for the imported goods, including the elements referred to in Article 8 of the Agreement. If, once the supplementary information is received, or in the absence of a response from the importer, the Customs Authority still has reasonable doubts about the declared value, it may decide, taking into account Articles 11, 17 and paragraph 6 of Annex III of the Agreement, that the customs value of the imported goods cannot be determined in accordance with the provisions of Articles 1 and 8 of the Agreement, but before adopting a definitive decision, the Customs Authority shall communicate to the importer the reasons on which it is based and shall give him a reasonable opportunity to respond. Once the definitive decision is adopted, the Customs Authority shall communicate it to the importer in writing.

Actions of the Customs Authority. In accordance with the preceding Article, the Customs Authority shall proceed to perform the following actions:

• a)

  Request the importer to provide, within ten days following the date of notification, information, documentation and other evidentiary elements that are required to verify the truthfulness and accuracy of the originally declared value. In the case that the required evidence must be obtained abroad, the period shall be thirty days, provided that the importer requests it within the ten days referred to in the preceding paragraph.

• b)

  In the case that the information and documentation presented by the importer dispels the reasonable doubt, the Customs Authority, within ten days following the presentation of the required evidence, shall notify the importer of the acceptance of the declared value; without prejudice to the powers that the Customs Service has to perform subsequent verifications.

• c)

  If the importer does not provide the required information within the period indicated in subsection a) of this Article, or if the information presented does not dispel the reasonable doubt, the Customs Authority, within ten days following the expiration of such period or the presentation of the evidence, shall notify the importer that the declared value shall not be accepted for customs purposes and shall indicate the customs value that it will assign to the imported merchandise, granting ten days from the day following the notification for the importer to respond and provide the corresponding discharge evidence.

• d)

  Upon expiration of the period granted to the importer in the preceding subsection, or from the date of submission of the discharge evidence, the Customs Authority shall, within the following fifteen days, notify the acceptance or rejection of the declared value; without prejudice to the application of the corresponding sanctions.

• e)

  If, upon expiration of the period that the Customs Authority has indicated in the preceding subsection to determine and notify the customs value, it does not do so, upon prior request of the importer, authorization shall be granted to release the merchandise or to release the guarantee constituted in due course, in accordance with what is established in

Article 202 of this Regulation; without prejudice to the powers that the Customs Service has to perform the verification and determination of the customs value subsequent to the dispatch, within the period established in the Code. The Customs Authority shall require the importer in writing or by the means that the Customs Service establishes, as indicated in this Article, and likewise the importer shall respond by the established means. The importer shall not incur infractions nor shall be subject to the payment of fines, when the Customs Authority does not accept the declared value as transaction value due to the occurrence of the circumstances established in Article 1, numeral 1 of the Agreement, provided that the importer so indicates in the Declaration of Value.

Grounds for Rejection of Transaction Value. The Customs Service shall also proceed to reject the value declared by the importer and shall determine the customs value of the imported merchandise, based on the successive methods of the Agreement, in the following cases:

• a)

  Failure to maintain accounting records, failure to preserve them or failure to make them available to the Customs Service and other documents related to foreign commerce that are required;

• b)

  Refusal to permit the exercise of the verification powers of the Customs Service;

• c)

  Omission of records or alteration of information of foreign commerce operations in the accounting;

• d)

  Failure to comply with the requirements of the Customs Service to present documentation or information within the granted period that proves that the declared value was determined in accordance with the provisions of the Agreement and this Regulation;

• e)

  When it is proven that the information or documentation presented is false or contains false or inaccurate data, or when it is determined that the declared value was not established in accordance with what is provided in the Agreement and this Chapter; or f) When the importer is required to demonstrate that the relationship has not influenced the price and the importer fails to demonstrate such circumstance.

Request for Explanation of the Method Applied. For the purposes of

of the Agreement, the importer may request, within three days following the date of notification of the determination of the customs value by the Customs Authority, an explanation regarding the method on the basis of which it determined the customs value of the merchandise. The Customs Authority shall respond within ten days following the date it received the request. Both the request submitted by the importer and the response provided by the Customs Authority shall be made in writing or by the means established by the Customs Service.

Post-Release Verification. The investigation and verification of the declared customs value may be performed by the Customs Service after the release of the merchandise, within the period established in the Code and in accordance with applicable legal provisions, considering what is noted in the last paragraph of Article 205 of this Regulation.

Obligation to Supply Information. Every natural or legal person, directly or indirectly related to the importation of merchandise into the customs territory, has the obligation to supply to the Customs Authority the documents, books, accounting records or any other information necessary, including in electronic, magnetic, magneto-optical or any other digital medium, for the verification and investigation of the customs value.

Declaration of Customs Value. In the importation of merchandise, the Declaration of Value shall be presented, which shall contain the information, elements and other data required in the form and completion instructions that appear as an annex to this Regulation.

Sworn Declaration. The Declaration of Value shall be signed under oath exclusively by the importer when it is a natural person; or by the person holding legal representation when it is a legal person. The person who signs shall be responsible for the accuracy of the data contained therein, the authenticity of the documents that support it, and for supplying any information and documentation necessary to verify the correct declaration and determination of the customs value. The presentation and validation of the Declaration of Value may be carried out by electronic, magnetic, magneto-optical, optical means or by any other means that the Customs Service establishes.

Non-Requirement to Submit Declaration of Value. The presentation of the Declaration of Value shall not be mandatory in the following cases:

• a)

  Importations carried out by the State and municipalities;

• b)

  Importations carried out by international organizations or entities that are exempt from the payment of taxes;

• c)

  Non-commercial importations (parcels, postal shipments, express shipments, samples, free merchandise, donations);

• d)

  Merchandise imported on consignment;

• e)

  Commercial importations whose customs value does not exceed one thousand Central American pesos, provided that it is not fractioned importations or shipments;

• f)

  Merchandise subject to the temporary or suspensive regime;

• g)

  Merchandise subject to the liberatory regime;

• h)

  Importations under the Central American Unified Customs Form;

• i)

  Household goods;

• j)

  Importations carried out by non-profit entities that are exempt from taxes;

• k)

  Relief shipments;

• l)

  Traveler's baggage; and m) Other cases that the Customs Service determines.

Database of Values. The customs services shall establish a database of values, which shall contain information on updated prices, in order to conduct investigations on the values declared for imported merchandise, for which purpose they may request from importers, auxiliaries of public functions and other foreign commerce operators, information related to the value of imported merchandise. With the information referred to in the preceding paragraph and any other information that may be obtained from other sources, the Regional Database shall be established, which shall be located in the facilities of the Central American Economic Integration Secretariat, to which the customs services of the States Parties may access.

Technical Criteria. The Customs Committee shall analyze problems relating to the customs valuation of merchandise and shall issue the corresponding technical criteria for the correct interpretation and uniform application of the Agreement and this Chapter. The technical criteria issued by the Customs Committee shall be mandatory and shall be published on the webpage of the customs services and by other means of communication.

Central American Commission on Customs Valuation. For the purposes of the preceding Article, and based on Article 10 of the Convention on the Central American Tariff and Customs Regime, the Central American Commission on the Customs Valuation of Merchandise is created as a technical working group of the Customs Committee, which shall be composed of one principal representative and one alternate representative of the Customs Service of each State Party. This Commission shall meet

Functions of the Commission. The Commission shall have, among others, the following functions:

• a)

  Address the problems that the Customs Services face in customs valuation matters;

• b)

  Propose to the Customs Committee for its approval the corresponding technical criteria;

• c)

  Propose to the Customs Committee the administrative provisions (normative or operational) that it must issue for the correct interpretation and application of the Agreement and this Chapter; and d) Perform such other functions as the Customs Committee may assign to it.

Birth of the Customs Tax Obligation. The customs tax obligation arises between the State and the taxpayers, at the moment the taxable event occurs in accordance with Article 46 of the Code. It constitutes a legal relationship of a personal character and patrimonial content guaranteed by a pledge on the merchandise, with preference over any other guarantee or obligation that may affect the merchandise.

Taxable event. In addition to those established in Article 46 of the Code, the following are constituted as taxable events generating the customs tax obligation:

• a)

  In customs tax infractions, the tax regime in effect on the date of: i. Commission of the customs tax infraction; ii. Preventive seizure, when the date of commission is unknown; or iii. Discovery of the customs tax infraction if none of the above can be determined, shall be applied.

• b)

  On the date of acceptance of voluntary abandonment of merchandise by the Customs Service;

• c)

  On the date of acceptance of the declaration of merchandise exempt wholly or partially from import duties, in case of non-compliance with the conditions under which the exemption was granted;

• d)

  On the date of acceptance of the declaration of merchandise entered into customs territory under some customs regime suspending duties, in case of non-compliance with the condition under which the regime was granted;

• e)

  On the date of acceptance of the declaration of merchandise leaving customs territory under a tax-suspending regime, in case of non-compliance with the condition under which the regime was granted; and f) When provisional declarations are involved, the applicable duties shall be those in effect on the date of acceptance thereof.

Taxable event in fractional imports. In imports of merchandise that for tariff purposes constitute a unit, but are introduced disassembled or unassembled, in fractional shipments for entry on different dates, the duties in effect on the date of acceptance of the declaration corresponding to the import of the first fraction shall be applied to the whole of the unit, in accordance with the following conditions: a) That importers expressly request it from the Customs Service before making the import of the first fraction; and b) That all partial shipments are imported within the period designated by the Customs Service in the authorization issued.

Means of extinction of the customs tax obligation. The customs tax obligation is extinguished by the means established in

of the Code.

Payment. The payment of the customs tax obligation must be made in cash, in legal tender currency or in other forms permitted by law.

Compensation. The competent authority may agree to the extinction of the customs tax obligation by compensation, when the following circumstances concur: a) That these are matured, liquid and enforceable tax debts; and b) That the credits that the passive subject has against the Treasury are recognized by binding administrative action derived from improper or excess collection or credits in their favor under the concept of duties, interest and surcharges of any nature. The customs services shall establish, through administrative provisions, the mechanisms for compensation to operate.

Prescription. The following shall prescribe within a period of four years:

• a)

  The power of the Customs Service to demand payment of the customs tax obligation, its interest and surcharges, which have ceased to be collected, counted from the date of acceptance of the merchandise declaration;

• b)

  The right of the passive subject to demand restitution of what was paid in excess or improperly, for duties, interest and surcharges or the accreditation in their favor by the tax administration, counted from the date of payment of the customs tax obligation; and c) The exercise of the action to impose sanctions for administrative and tax infractions. What was paid to satisfy a prescribed customs tax obligation cannot be the subject of repetition, even if payment was made with knowledge of the prescription or without it.

Interruption of prescription. The periods for prescription shall be interrupted:

• a)

  By notification of the resolution or initial act of the administrative procedure intended to determine customs obligations, including administrative and tax customs infractions;

• b)

  By the filing of resources of any kind by the passive subject that are admissible in accordance with the Code and this Regulation;

• c)

  By filing of judicial actions that have the effect of suspending the administrative procedure or preventing the final administrative act from being issued;

• d)

  The request or claim for return of what was paid in excess or improperly presented by the passive subject; or e) By any action of the passive subject conducive to recognition of the customs tax obligation.

Confusion. For the purposes of literal g) of Article 58 of the Code, the customs tax obligation is considered extinguished by the meeting in the active subject of the qualities of debtor and creditor as a consequence of the operation of voluntary abandonment, non-award in public auction or transmission of merchandise subject to import or export duties.

Loss or destruction. Loss or destruction of merchandise by act of God or force majeure duly proven to the satisfaction of the Customs Service, or destruction of merchandise under customs control, shall extinguish the customs tax obligation, in proportion to the loss or destruction, without prejudice to the civil, tax, administrative or criminal liabilities that may correspond. Merchandise under customs control that by its conditions or state is not susceptible to industrial or commercial use may be destroyed upon request of the interested party. Destruction shall be carried out at the expense and cost of the interested party, in the presence of the Customs Authority. In the case of merchandise that by its nature or by its degree of deterioration affects normal environmental conditions or animal, plant or human health, it must be destroyed in the presence of and following the instructions of the competent authorities of the field. SECTION II CUSTOMS PLEDGE

Rights derived from the customs pledge. The customs pledge gives rise to the exercise of the rights of retention, pursuit, seizure and preference in the manner established hereinafter: a) Customs authorities shall exercise the right of retention of merchandise or vehicles belonging to the person against whom claim is made, which are under customs control, to respond for the payment of duties, fines and other charges incurred: i. By the same merchandise retained; ii. By merchandise belonging to the same passive subject, which is in the same customs house; and iii. By other merchandise belonging to the same passive subject that is in another customs house in customs territory. b) The Treasury shall enjoy the right of preference against any creditor for the collection of matured and unpaid customs credits, relating to the merchandise referred to in the preceding paragraph; and c) If, once the retention of the merchandise is carried out, the interested person does not make the corresponding payment, the procedure shall be in accordance with the provisions established in this Regulation.

Common proceedings of the procedure. To decree the customs pledge, the Customs Service must observe the following basic rules: a) That there exists a final resolution, which contains a liquid and enforceable sum; and b) That the prior process has been notified to the persons or entities that may be affected. The customs pledge shall only proceed, prior to the initiation of the judicial collection procedure, as an administrative precautionary measure.

Execution of the customs pledge. The procedure for execution of the customs pledge must be initiated within the period of prescription for the collection of the customs tax obligation.

Cancellation of the pledge. The effective payment of the duties, fines and other charges for which the merchandise is responsible, cancels the customs pledge decreed. SECTION III GUARANTEE OF THE CUSTOMS TAX OBLIGATION

Update of the guarantee amount. For the purposes of

of the Code, and when adjustments or differences are determined in the clearance process, the amount of the guarantee shall be updated every three months or in a longer period, when the Customs Service so determines; said period shall be counted from the date of constitution of the guarantee, and shall include, when applicable, the interest that would be owed on that date for the unpaid sums.

Execution of the guarantee. Once the administrative remedies have been exhausted or the condition to which the corresponding regime is subject has been breached, the guarantee rendered before the Customs Service shall be executed in the manner and within the periods in accordance with the type of guarantee in question.

Authorized places, routes and schedules. The entry and exit of persons, merchandise and means of transport from the customs territory shall only be effected through the places, routes and schedules authorized by the Customs Service. Means of transport and their cargo that cross the borders or authorized places shall be subject to customs control upon their entry and exit from the customs territory. Travelers and transporters who carry or conduct merchandise by any means of transport shall present and declare it immediately to the Customs Authority at the place where they entered, without modifying its condition and packaging.

Transport of dangerous merchandise. International transport companies that transport dangerous merchandise, such as: explosive, flammable, corrosive, contaminating and radioactive materials, must give notice thereof to the Customs Authority in advance of the arrival of the means of transport to the customs territory. In these cases, the Customs Authority must inform the competent authorities of such circumstance in order to verify jointly that the corresponding safety measures are adopted. Likewise, the transporter who causes them to enter is obliged to ensure that the packages bear an indication of the nature of such merchandise. When this merchandise is transported in duly authorized means of transport, the code or symbol indicating the dangerousness thereof must be indicated on the exterior in accordance with the provisions established in special and international legislation. This type of merchandise may be admitted to the installations of a customs warehouse if they meet the necessary requirements and conditions to locate or deposit this type of merchandise and the auxiliaries have been previously authorized by the Customs Authority for such purposes. For the execution of loading, unloading and other operations related to these merchandise, the provisions dictated by the competent authorities shall be observed. The merchandise referred to in the first paragraph of this Article may be inspected at the customs office of destination. In the event that special means are needed to facilitate such inspection or when the delivery and custody of the merchandise by the customs office of destination is dangerous, they may be delivered and inspected outside the customs installations, with prior authorization of the Customs Service.

Office hours. In coordination with the other agencies that operate at border posts, maritime ports and airports, the Customs Service shall establish office hours and, where applicable, shall designate extraordinary periods for the provision of customs services. The Member States shall agree upon and comply with uniform and uninterrupted schedules for the provision of services related to the entry and exit of persons, merchandise and means of transport. In the case of air and maritime traffic, transport companies or, failing that, the port and civil aviation authorities shall communicate in advance the established itineraries and schedules for the entry and exit of ships and aircraft from the customs territory, for the exercise of the competencies of the Customs Service and other corresponding authorities.

Presentation and legal receipt of the means of transport. Every means of transport entering the customs territory through authorized places must be presented before the competent Customs Authority and received by it, in accordance with the mode of transport. Legal receipt is understood to be the act of control exercised by the Customs Authority over every means of transport, in order to require and examine the documents established in Article 242 of this Regulation and declarations required by applicable laws and regulations, as well as to register and monitor the means when circumstances warrant. These documents shall be presented at the time of the inspection visit. In the event that there is no inspection visit, they must be provided within the following three business hours from arrival. Once the legal receipt of the means of transport has been completed, the embarking or disembarking of persons and merchandise may proceed. The date of receipt shall be deemed, for all corresponding purposes, as the date of arrival of the means of transport and their merchandise.

Control measures in receipt. In the receipt of means of transport, the Customs Service may adopt, among others, the following control measures:

• a)

  Inspection and search of the means of transport;

• b)

  Closure and sealing of compartments in which there are merchandise susceptible to clandestine unloading;

• c)

  Documentary verification; and d) Permanent surveillance of the means of transport.

Application of risk criteria. The Customs Service shall apply the control measures set forth in Article 237 of this Regulation, based on risk criteria, to ensure compliance with customs obligations.

Inspection and search. Once the customs office has received the transmission of the cargo manifest, it shall notify the transporter, when applicable, whether it will conduct an inspection visit to the means of transport entering the customs territory, in accordance with risk criteria for purposes of control and supervision. In the case of means of transport leaving the customs territory, the Customs Service may conduct such inspections as it deems appropriate, using risk criteria.

Purpose of inspection. The inspection, when applicable, shall have the purpose of verifying that passengers and crew members of the means of transport comply with the applicable legal and regulatory provisions in customs matters and adopting such surveillance and fiscal security measures as may be necessary with respect to the merchandise. Among other surveillance and security measures, the Customs Authority may order the placement of seals on packages or the closure of warehouses or compartments by means of seals, locks or stamps. Violation of these security mechanisms shall be subject to the sanctions provided for in the applicable legislation. The result of the inspection visit shall be recorded in a report containing the incidents detected at the time of inspection.

Prohibition of sale or gift of merchandise. The sale or gift of any class of merchandise that is on board means of transport entering the customs territory to private persons or to public officials or employees is prohibited. The foregoing is without prejudice to the merchandise that constitutes ships' stores to which the customs treatment provided for in this Regulation shall be given.

Obligation to provide information. Transporters are obliged to provide, through electronic transmission or other authorized means, when applicable, the information contained in the following documents:

• a)

  General cargo manifest;

• b)

  Transport document;

• c)

  List of passengers, crew members and their baggage with indication of whether their unloading will be effected;

• d)

  List of ships' stores;

• e)

  Postal shipment guide;

• f)

  List of empty transport units destined for the customs port of arrival in the customs territory;

• g)

  List of dangerous merchandise, such as: explosive, flammable, corrosive, contaminating and radioactive materials for each port of destination; and h) Others legally required. When it is a matter of means of transport that arrive without cargo, the documentation indicating such condition must be presented.

Information in the cargo manifest. The cargo manifest shall contain, among others, according to the type of traffic, the following data:

• a)

  Ports of origin, departure and destination as applicable, as well as the voyage number;

• b)

  The nationality, name of the ship, vessel or boat and registration of the means of transport, according to the traffic in question;

• c)

  Numbers of transport documents; marks, numbering and quantity of packages;

• d)

  Identification code and number of containers it transports, as well as the information related to the destination of the merchandise it contains and other equipment it uses to transport the cargo. It shall also indicate the quantity and number of empty containers;

• e)

  Class, contents of packages and their gross weight expressed in kilograms; physical condition of the merchandise; indication of whether the merchandise is transported in bulk, separately specifying batches of the same class of merchandise, in which case the batches shall be considered as a single package. Likewise, it shall be indicated whether it transports dangerous merchandise, such as: explosive, flammable, corrosive, contaminating and radioactive materials. The Customs Service may establish other merchandise whose indication is mandatory;

• f)

  Place and date of shipment; name, business name or denomination of shippers and consignees;

• g)

  Total number of packages;

• h)

  Total weight of cargo, in kilograms;

• i)

  Description of merchandise;

• j)

  Place and date on which the document is issued; and k) Name, business name or denomination, code and signature of the transporter.

Complementary information. At the time of arrival, the transporter shall communicate to the Customs Authority any circumstance that reflects the physical condition of the merchandise, such as losses, damage or average, produced during its transport, as well as any other circumstance that affects the information previously supplied by it.

Advance transmission of the cargo manifest. The customs transporter shall supply to the Customs Service the corresponding cargo manifest information, through electronic data transmission and in accordance with the formats defined by it. This information shall be supplied within the periods determined by the Customs Service or in the following:

• a)

  In the case of maritime traffic, the information must be transmitted with a minimum advance of twenty-four hours prior to the arrival of the vehicle at the customs port. If the duration of transport between the port of departure and the port of destination is accomplished within shorter periods, transmission must be effected at least with an advance equal to those periods;

• b)

  In the case of air traffic, the information must be transmitted with a minimum advance of two hours prior to the arrival of the aircraft. If the duration of transport between the port of departure and the port of destination is accomplished within shorter periods, transmission must be effected at least with an advance equal to those periods;

• c)

  In the case of deconsolidation companies and rapid delivery or courier services, they must effect transmission of their manifests in advance of the arrival of the aircraft; or d) In the case of overland transport, the cargo manifest may be transmitted electronically in advance and exceptionally may be presented at the time of arrival of the means of transport at the corresponding customs office or authorized customs enclosure. The transporter may modify the previously transmitted cargo manifest information until before the official receipt of the means of transport. In the case of exit manifests, each Customs Service shall establish the periods within which the same must be transmitted.

Defects in information transmitted from the cargo manifest. The Customs Service shall not process the transmission of cargo manifest information that contains defects in the information required by it. When the cargo manifest does not appear registered in the customs system and the transmitting entity alleges that it was sent electronically, in order for transmission to be considered valid, the transmitter must present the registration number or copy of the acceptance message, which shall have to be validated in the customs computer system. The Customs Service shall regulate the form and conditions for the presentation of the cargo manifest in cases of force majeure or acts of God that prevent its transmission. CHAPTER II FORCED ARRIVAL

Forced arrival. In the case of forced arrival, the transporter shall notify the competent Customs Authority within the same day of such arrival, specifying the reasons or causes thereof.

Control by the Customs Authority. Upon becoming aware that forced arrival has occurred, whether by notification from the transporter or by any other means, the Customs Authority shall immediately proceed to the place of arrival and shall request from the person responsible for the means of transport the presentation of the cargo manifest; in the event that it does not exist, it shall draw up a report specifying the necessary information. Means of transport that arrive under forced arrival conditions, their cargo, and other effects shall remain under the control of the Customs Service.

Authorization of unloading in forced arrival. If for justified reasons there should be a need for the unloading of merchandise from the means of transport under forced arrival conditions, the Customs Authority shall authorize the unloading provided that it is done in its presence. However, if the reason for forced arrival of the means of transport is due to imminent danger duly justified, the transporter may, at its sole responsibility, permit the unloading of the merchandise, even before having been authorized by the Customs Authority. In both cases, no sanction shall be applied. After the emergency has passed, the transporter shall present the corresponding cargo manifest to the Customs Authority closest to the place of unloading. If the means of transport carries merchandise consigned to the customs territory, the Customs Authority, once the requirements contemplated in the Code and this Regulation have been formalized, shall definitively authorize its unloading and/or permanence in the customs primary zone, pending the assignment of the corresponding customs regime by the consignee or consignees.

Verification of force majeure or acts of God. If the force majeure or act of God that gave rise to the forced arrival is verified, authorization may be granted for the continuation of the voyage, transshipment, or unloading of the merchandise. If the justifications presented are deemed unacceptable, the Customs Authority shall order the seizure of the means of transport, the deposit of the merchandise, and shall initiate the corresponding liability proceedings. CHAPTER III TEMPORARY UNLOADING OF CREW CLOTHING AND OTHER MERCHANDISE

Procedure for temporary unloading of crew clothing and other merchandise. The temporary unloading of clothing or other articles, for laundering or disinfection, may be carried out prior to authorization by the competent Customs Authority, when the captain of the vessel or the shipping agent presents a request to the customs authority in which he specifies the reason for unloading, the list of merchandise to be unloaded, as well as the time period and the place where this service shall be performed. The merchandise shall be reloaded prior to the departure of the vessel and shall be presented for inspection before the corresponding customs authority, presenting a copy of the authorization that was granted for the unloading. Duties shall be paid by the shipping agent or the captain of the vessel if the merchandise referred to in this Article is not reembarked within the time period specified in the corresponding authorization.

Deposit of merchandise in air traffic. Companies authorized to provide international services for the transport of persons and merchandise by air may deposit in the places assigned for this purpose within the primary zone of customs, merchandise of foreign origin that is indispensable to satisfy the basic needs of service to passengers and crew during the flight, complying with the requirements and conditions established by the Customs Service through the respective authorization. CHAPTER IV CONSOLIDATION AND DECONSOLIDATION OF MERCHANDISE

Deconsolidation operations. Deconsolidation operations shall be carried out in the primary zones or customs operation areas authorized for such purposes, taking into account the infrastructure conditions and established procedures. The cargo deconsolidator shall include in the bills of lading that it issues the identification number of the master bill of lading previously transmitted to the import customs authority by the transporter.

Cargo consolidation process. Cargo consolidation shall proceed in cases of merchandise departing from the customs territory and shall be in charge of the authorized auxiliary who receives and groups merchandise from various recipients, under its responsibility, obligating itself to transport them, either by itself or by means of a transport service provider. For these purposes, it assumes the status of cargo handler and issues a single document that must support the cargo manifest.

Authorized place for consolidation. Cargo consolidation shall be carried out in authorized cargo terminals or customs warehouses or another operating area enabled by the Customs Service, where security devices shall also be placed for subsequent loading. CHAPTER V LOADING, UNLOADING, TRANSSHIPMENT, RELOADING AND TEMPORARY STORAGE OF MERCHANDISE SECTION I LOADING AND UNLOADING

Loading or unloading. Once the legal reception of the means of transport is concluded, loading or unloading of merchandise and embarkation or disembarkation of crew members and passengers or any other appropriate customs operation shall be authorized under customs control. The port authority, airport authority, concessionaire or contractor of public port or airport services, the competent official or the auxiliary authorized by the Customs Service, shall verify the loading or unloading of what is listed in the manifest, for which it shall operate the respective control, and may be assisted by the control operations carried out by the administering entities of the port or air facilities and by the transport companies themselves, recording in the manifest the result of the operation and communicating it immediately to customs by the means enabled by the Customs Service. The designated official, when applicable, to perform the inspection shall record his actions and registers in the computer system or in the cargo loading or unloading reception document, especially regarding the identification, quantities of transport units, merchandise or packages loaded or unloaded, their seal numbers, differences with the cargo manifest, time, and date. The Customs Service shall notify the transporter of the result of the loading or unloading, by means of the computer system or another authorized means.

Unloading and loading of transport units and receipt of merchandise under the responsibility of the customs transporter. When the Customs Service has authorized the unloading, loading of transport units, or receipt of merchandise under the responsibility of the customs transporter, the latter shall report to the competent customs authority within the following three business hours after the operation is completed, the transport units or packages effectively unloaded, loaded, or received, the seal numbers, and other data required by the Customs Service.

Other authorized places for loading or unloading. The Customs Authority may authorize merchandise to be loaded or unloaded in other places not previously authorized, prior to a request from the consignee, transporter, or their legal representative, as applicable, in consideration of:

• a)

  Its nature, such as: live plants and animals;

• b)

  Its urgency or justification, such as: refrigerated merchandise, vaccines, serums, and relief shipments;

• c)

  Its dangerousness, such as: explosive, corrosive, flammable, pollutant, toxic, and radioactive merchandise;

• d)

  Its perishable or easily decomposable character, such as: flowers, fruits, and fresh or refrigerated meat;

• e)

  Its volume, dimensions, or lack of infrastructure; and f) Others established by the corresponding Customs Service.

Entry or departure through a different customs authority. Merchandise intended to enter or depart through a specific customs authority may do so through another in the same customs territory, with the same original documentation, provided that:

• a)

  The destination customs authority has been closed or is unable to receive the cargo for any circumstance duly justified by the Customs Service;

• b)

  Force majeure or an act of God exists, duly verified before the customs authority; or c) The captain of the vessel or consignee of maritime merchandise requests in justified form to unload and clear in another port different from the one designated as destination. In this case, the receiving customs authority shall receive the packages or other transport elements based on the cargo manifests or the authorized means. The competent official or authorized person shall proceed to receive them, shall record their approval or shall make observations by the authorized means; the foregoing without prejudice to the application of control measures in exercise of customs authority. In the case of merchandise that due to its conditions and nature has been authorized to enter or depart exclusively through a specific customs authority, the change of entry or departure customs authority must be requested by the interested party to the competent authority.

Authorization of departure. The Customs Authority shall grant authorization for the departure of merchandise and transport units toward the exterior of the customs territory, when the customs formalities and requirements are complied with and there is no legal impediment.

Period for justification of shortages and surpluses. Shortages or surpluses of merchandise in relation to the quantity consigned in the cargo manifest shall be justified within a maximum period of fifteen days. Said period shall be counted from the day following the completion of unloading, whether at the port of arrival or at another authorized place for cargo reception or from notification of the cargo receipt document in which the detected difference shall be noted, as defined by the Customs Service. After said period has elapsed without the differences having been justified, the corresponding legal actions shall be promoted.

Responsible parties for justifying shortages and surpluses. The responsible parties for justifying surpluses and shortages are:

• a)

  The carrier or its legal representative at the port of loading or unloading.

• b)

  The exporter or shipper, through its representative in the country of unloading, when the carrier has received the containers sealed with security devices.

• c)

  The consolidator, express delivery company or courier, or the consignee, when the latter is the one that made the shipment and the carrier has received the containers sealed with security devices. The Customs Service may require, in qualified cases, that the justification be issued by the legal representative of the carrier at the port of loading, the exporter or shipper, the deconsolidator, the express delivery company or courier, through the presentation of supporting documentation.

Justifications for shortages. In the justification of missing merchandise, it must be demonstrated, as the case may be, that:

• a)

  They were not loaded on the means of transport;

• b)

  They were lost or destroyed during the voyage;

• c)

  They were unloaded by error at a place different from that manifested;

• d)

  They were not unloaded from the means of transport; or e) Other causes permitted by the Customs Service. Once justifications are received and accepted by the Customs Authority, the latter shall confirm the quantities received for purposes of customs clearance. If the shortage is total, it shall cancel the transport document within the respective manifest. If it does not accept the justifications presented, it shall issue a reasoned resolution within three days following receipt of the justifications, in which it shall set forth the reasons for the rejection.

Justifications for surpluses. In the justification of surplus merchandise, it must be demonstrated, as the case may be, that:

• a)

  They were unloaded by error or were missing at another port;

• b)

  There are errors in the information transmitted, provided that the merchandise is of the same class and nature as manifested; or c) Other causes permitted by the Customs Service. Once justifications are received and accepted by the Customs Authority, the latter shall confirm the quantities received for purposes of being added to the cargo manifest. If it does not accept the justifications presented, it shall issue a reasoned resolution within three days following receipt of the justifications, in which it shall set forth the reasons for the rejection. In the event that the surpluses are not justified, the excess merchandise shall be considered abandoned and shall remain at the disposal of the Customs Authority to be subjected to an auction process or any other legally authorized form of disposal.

Special case of differences. In the case of bulk cargo, justification of differences shall not be required, provided that they do not exceed five percent of the weight or volume, as the case may be, with respect to what was manifested.

Rectification of the cargo manifest. Once justifications for shortages and surpluses are presented and accepted, the Customs Authority shall, at the latest by the following business day, resolve and order the rectifications to be made to the respective cargo manifest or other means serving that purpose, in the following manner: a) By reducing from the corresponding cargo manifest the properly justified shortages; or b) By adding to the cargo manifest the properly justified surpluses. Justified surpluses may be cleared under any of the customs regimes or operations. In this case, the period of temporary storage shall be computed from the date on which the order for rectification for the addition of surpluses is issued.

Packages or means of transport damaged, looted or deteriorated. In the event that the unloading of packages or means of transport showing signs of damage, looting or deterioration is carried out with the intervention of the Customs Authority, the latter, together with the representative of the port authority, airport authority, the concessionaire or the contractor of port or airport public services and the customs carrier declaring the entry of merchandise into the customs territory, shall draw up a report or record thereof. Likewise, the Customs Authority shall order the carrier to separate them for verification of their contents and weight and subsequent reconstruction, repackaging, sealing or other pertinent security and protection measures of the packages or means of transport. In the event that unloading is carried out without the presence of the Customs Authority, previously authorized by said authority, the customs carrier together with the representative of the port authority, airport authority, the concessionaire or the contractor of port or airport public services, shall, within the port zone, count and verify the damaged packages or merchandise or those bearing signs of having been violated and report the result immediately to customs. Said result shall be transmitted or presented by the carrier to the Customs Authority in writing and duly signed by the port authority, airport authority, the concessionaire or the contractor of port or airport public services endorsing its contents.

Control of permanence and departure from the port or airport zone. The port authority, airport authority, the concessionaire or the contractor of port or airport public services shall transmit by electronic means to the corresponding Customs Authority, in accordance with the provisions established by the Customs Service, a weekly report of the means of transport unloaded at the port, of the merchandise unloaded in its warehouses and of the itinerary previously arranged by the port or airport authority for the docking of vessels or arrival of aircraft during that week. The port authority, airport authority, the concessionaire or the contractor of port or airport public services shall not permit the actual departure of the means of transport and their cargo from the primary zone without authorization from the Customs Authority.

Cancellation of the manifest. With the presentation of the goods declaration that determines a customs regime or other documents that authorize a customs operation, the cancellation of the transport document within the cargo manifest shall proceed, as the case may be. The cancellation of all transport documents shall be understood to result in the cancellation of the cargo manifest. Cancellation shall be made in the electronic system of the Customs Service or in the means used by it for the control of cargo manifests.

Admissibility. Transshipment shall be admissible when the merchandise is consigned in the cargo manifest and it indicates the customs house where it shall take place, except in case of force majeure or circumstances beyond control properly proven to the satisfaction of the Customs Service, which warrants carrying out the operation at another customs house or location authorized for this purpose by the same.

Direct and indirect transshipment. Direct transshipment is that in which merchandise is transferred directly from one means of transport to another. Indirect transshipment is that in which merchandise is transferred from one means of transport to another after having been deposited in customs facilities. In both cases the respective manifest shall be required.

Request. The request for transshipment shall be presented to the Customs Authority by the carrier, the consignee or its representative, in the formats and through electronic data transmission or other authorized means and shall contain the following information:

• a)

  Identification of the carrier;

• b)

  Identification of the means of transport in which the merchandise arrived and that which will carry it to its final destination;

• c)

  Number of the cargo manifest;

• d)

  Quantity, weight and generic description of the merchandise;

• e)

  Justifications for the transshipment and indication of the place where it shall be carried out;

• f)

  Indication of the final destination of the merchandise; and g) Indication of requirement for complementary activities. When the Customs Authority so requires, a copy of the cargo manifest shall be attached with the related request.

Permitted transshipments. The Customs Service may permit the transshipment of merchandise from one means of transport to another, and it must comprise the entirety of the transport document included in the cargo manifest.

Intervention of the Customs Authority. Transshipment operations shall always require the intervention of the Customs Authority, as well as of any other competent authority, when applicable. Transshipment operations may only be carried out in the facilities of the corresponding customs house or in the operation zones authorized by the Customs Service, provided that they comply with adequate security and handling conditions, except in case of force majeure or circumstances beyond control properly proven to the satisfaction of the Customs Service, which warrants carrying out the operation at another customs house or location authorized for this purpose by the same.

Cancellation of transport document. The transport document included in the entry manifest shall be cancelled in the cases where applicable, once the transshipment has been carried out and registered in the exit manifest.

Term for performing transshipment. Transshipment shall be carried out under control and conditions determined by the Customs Authority, within a maximum term of twenty-four business hours, counted from its authorization. If for justified cause the interested party requires a longer term to perform the transshipment, they shall indicate this in a written request and the Customs Authority, after analysis, shall authorize the extension of the term, when appropriate. If transshipment is not performed within the established term or the longer term granted, as the case may be, the merchandise shall be considered abandoned.

Merchandise requiring special handling. Transshipment of dangerous merchandise may be authorized, such as: explosive, flammable, corrosive, contaminating and radioactive, whose handling may endanger common health or safety and in general those that require technical or specialized handling, when the requirements and conditions required by the competent authority are met.

Damaged or destroyed merchandise. Merchandise that during transshipment operations is damaged or destroyed, as a result of act of God or force majeure may be: a) Imported in the condition in which it is found; or b) Completely rendered useless, under the control of the Customs Service.

Complementary activities. The Customs Authority may authorize, during the transshipment process, that merchandise be subject to:

• a)

  Regrouping;

• b)

  Identification of packages; and c) Repair or replacement of defective packaging. SECTION III ON RE-SHIPMENT

Request for re-shipment. The request for re-shipment of foreign merchandise unloaded by error shall be presented to the corresponding Customs Authority by the carrier, consignee or their representative, in the formats and by means of electronic data transmission or other authorized means. The Customs Authority may expressly authorize the re-shipment operation, provided that the conditions established in the

of the Code are met.

Term for performing re-shipment. To grant authorization for re-shipment, no guarantee shall be required and it shall be performed within a term of ten days counted from the authorization. If for justified cause the interested party requires a longer term to perform the re-shipment, they shall indicate this in a written request and the Customs Authority, after analysis, shall authorize the extension of the term, when appropriate. If re-shipment is not effected within that term, the merchandise shall be considered abandoned, without prejudice to other responsibilities that may be imposed. SECTION IV ON TEMPORARY DEPOSIT

Merchandise in temporary deposit. The consignee, carrier, deconsolidator, express delivery or courier companies, customs agent or special customs representative may request, as the case may be, in the manner and by the means established by the Customs Service, the transfer of merchandise to temporary deposits, except in the case indicated in Article 126 of this Regulation.

Term for temporary deposit. Merchandise may remain in temporary deposit for a maximum term of twenty days, counted from the date of completion of unloading of the vessel or aircraft. In the case of land traffic upon arrival of the means of transport. After this term has elapsed without the merchandise being assigned to a customs regime or operation, it shall be considered abandoned.

Verification. The entry or exit of merchandise from temporary deposit shall be verified by electronic means and in accordance with the procedures corresponding to the authorized operation or regime and those established by the Customs Service.

Request to perform activities in temporary deposit. To perform the activities contemplated in Article 289 of this Regulation, a request shall be presented to the competent Customs Authority, by the consignee, their representative, the customs agent or special customs representative, deconsolidator or express delivery or courier company. The Customs Authority shall resolve within the next business day following its presentation. If the activity is authorized, it shall be performed during business days and hours. If the request is not resolved within the stated term, the resolution shall be understood as favorable to the applicant. This resolution in no case suspends or extends the term corresponding to temporary deposit of merchandise.

Reception report. The temporary customs depositary upon receiving merchandise for its custody, shall electronically transmit to the Customs Service the reception report of the cargo manifest operated, indicating the result of unloading within the term of three hours of completion, recording among others, the information contained in the unloading report in accordance with that established in Article 489 of this Regulation.

Merchandise susceptible to temporary deposit. In temporary deposits all classes of merchandise from abroad or that are in free circulation destined for export shall be admitted, except in the cases provided for in this Regulation. When it comes to dangerous merchandise, the provisions of Article 234 of this Regulation shall apply.

Merchandise in state of decomposition. When deposited merchandise is in a state of decomposition or contamination, the legal representative of the temporary customs deposit shall notify the Customs Service so that, after intervention by the competent authority, its destruction shall be ordered, notifying the interested party of the place, date and time in which it shall be carried out, so that they may attend the act. If they fail to attend, they shall be deemed to have agreed. The competent authorities shall intervene in the destruction of merchandise to whom notice of the performance of such act shall be given in a timely manner. The costs incurred shall be borne by the consignee of the merchandise or the depositary when appropriate. The consignee may request from the Customs Service that merchandise within such shipments that is in good condition be delivered to them, proceeding in accordance with the opinion of the competent authority and giving it the corresponding destination.

Activities during temporary deposit. While merchandise remains in temporary deposit, under control of the Customs Authority, as the case may be, it may be subject by the interested party to the following activities:

• a)

  Prior examination;

• b)

  Inspection, weighing, measurement or counting;

• c)

  Placement of marks or signals for identification of packages;

• d)

  Extraction of samples for analysis or registration;

• e)

  Division or re-packaging;

• f)

  Emptying or partial unloading;

• g)

  Destruction;

• h)

  Control of machinery operation or its maintenance, provided that its state or nature is not modified;

• i)

  Care of live animals;

• j)

  Those necessary for the preservation of perishable merchandise; and k) Those that must be adopted in case of act of God or force majeure.

Responsibility. Persons who have obtained authorization to provide temporary storage services for merchandise shall respond directly to the Customs Service for the amount of duties that tax merchandise that is mislaid, lost, or damaged during storage, due to causes attributable to the depositary.

Definitions. For the purposes of this Section, the following definitions shall apply: a) Competent authority to issue advance rulings, which may be abbreviated as competent authority: Customs Service and competent authority for the administration of treaties of each State Party, acting jointly or separately. b) Complete identification: Includes the full name of the applicant, whether a natural or juridical person; the number of the identity document if a natural person or the corresponding registration number if a juridical person; the name and number of the tax registry of the head office if it is a branch and the number of the importer registry if applicable.

Capacity and representation. Every importer, producer or exporter, whether a natural or juridical person, has the capacity to request from the competent authority the issuance of an advance ruling. Importers, producers or exporters may present their applications personally or be represented by duly accredited attorneys or legal representatives. Whoever has a legitimate interest in the issuance of an advance ruling may join the respective application, without modifying any of the elements presented by the applicant. For this purpose, they must expressly manifest their interest in writing. In this case, the applications shall be consolidated and a single advance ruling shall be issued.

Form and requirements of the application. Every application for the issuance of an advance ruling must be submitted in writing to the competent authority, refer to only one of the topics provided for in Article 72 of the Code, and meet the following requirements:

• a)

  Complete identification and address of the applicant(s);

• b)

  Complete identification and address of the legal representative or attorney of the applicant(s), when applicable;

• c)

  Indication of the class of advance ruling requested;

• d)

  Address or means to receive notifications regarding the application;

• e)

  Affirmation that the merchandise whose importation could be affected by the issuance of the advance ruling has not been imported;

• f)

  Affirmation under oath regarding the veracity of the information provided. The oath shall be deemed taken with the signature and presentation of the respective application; and g) Precise and detailed description of the merchandise subject of the application and of other information necessary to issue the advance ruling, as well as the applicant's claim. The aforementioned information shall be presented by the applicant in physical or electronic form, and may include additional information or clarifications deemed pertinent. The applicant must retain, where applicable, the receipt certification by electronic means as proof of the date of submission of the application.

Documents attached to the application. The application must be accompanied by:

• a)

  Copy of the identity document of the natural person applicant or proof of the existence of the juridical person applicant;

• b)

  Proof of legal representation, power of attorney or mandate, as appropriate; and c) Other documents requested by the Customs Service according to the class of ruling requested.

Opportunity. An advance ruling may not be requested with respect to merchandise that has already been imported, whose dispatch process has been initiated, or that is subject to a verification process or an appeal.

Veracity of information. If the applicant provides false or inaccurate information, or omits circumstances or facts relevant to the adoption of the advance ruling, or does not act in accordance with the terms and conditions of the advance ruling issued, the competent authority may annul, modify or revoke the ruling and apply the applicable sanctions including civil, criminal and administrative actions.

Express withdrawal. The applicant may withdraw from its petitions at any time by communicating this timely to the competent authority. However, if the competent authority deems it necessary to resolve the application, it may issue a general ruling that clarifies the subject matter of the withdrawn inquiry.

Deemed withdrawal. The applicant shall be deemed to have withdrawn from its application when, having received the requirement from the competent authority to complete the requirements or attach documents or information as provided in the preceding Articles, it does not respond within the period referred to in Article 300 of this Regulation, whether to submit the information or documents or to demonstrate the impossibility of obtaining them or their irrelevance. In this event, the application shall be filed, without prejudice to the applicant submitting a new application subsequently.

Issuance of advance rulings. The competent authority in each case shall have a maximum of one hundred fifty calendar days after receipt of the application to issue the advance ruling, provided that the applicant has furnished all the information required by the competent authority, including, if the authority requests it, a sample of the merchandise for which an advance ruling is being requested.

Incomplete applications. When the application is not accompanied by the necessary documents or information to issue the advance ruling, the competent authority shall order that the missing items be completed. The applicant must provide them within ten days following receipt of the application by the competent authority, and such period may be extended at the request of the interested party.

Continuity of criteria. When issuing the advance ruling, the competent authority shall maintain the same criteria of interpretation and application of the relevant legal provisions with respect to advance rulings previously issued to other applicants, provided that the facts and circumstances are identical in essential aspects. When the criteria must be changed, the competent authority shall explain the reasons for such change in the advance ruling.

Administrative responsibility. The expiration of the period for the issuance of the advance ruling, as provided in Article 299 of this Regulation, does not exempt officials from responsibility nor exonerates them from the obligation to resolve the application, provided that the import operation to which it refers has not been carried out.

Characteristics of rulings. Advance rulings must be issued in writing and shall cover in their entirety the topic presented by the applicant plus any other information that the competent authority deems pertinent.

Content of rulings. Advance rulings shall have at a minimum the following parts:

• a)

  Header clearly indicating the authority responsible for its issuance;

• b)

  Statement of facts and law that served as the basis for its issuance;

• c)

  Evaluation of the information attached to the application;

• d)

  Exact description of the merchandise and, if appropriate, a reference to samples, photographs, plans, drawings or detailed pertinent descriptions, submitted with the application;

• e)

  Description of the operations, measures or conditions that must be complied with at the time of entry of the merchandise, when the subject matter of the application warrants it;

• f)

  Description of the industrial process and operations to which the merchandise was subjected prior to entry into the customs territory of importation, when the subject matter of the application warrants it;

• g)

  Pronouncement on the subject matter of the application; and h) Date of effectiveness.

Notification. Advance rulings shall be notified to the applicant in accordance with the manner indicated by the applicant in the application.

Remedies. Claims and customs remedies filed against advance rulings issued by the Customs Authority, in its capacity as competent authority, shall be governed by the provisions of the respective Chapter of this Regulation. In the case of advance rulings issued by the competent authority for the administration of treaties of each Member State, the remedies applicable to such entity shall apply.

Effectiveness. Advance rulings shall become effective as of the date of their notification or as of a later date specified in the same ruling, provided that the facts and circumstances evaluated therein remain unchanged.

Annulment, modification or revocation. Final advance rulings may be annulled, modified or revoked by the same authorities that issued them, ex officio or at the request of the applicant, when any of the following circumstances occur:

• a)

  The competent authority becomes aware that the ruling was issued based on false or inaccurate information. In such cases, annulment shall apply as of the date the ruling was issued;

• b)

  The competent authority deems it appropriate to apply different criteria to the same facts and circumstances that were the subject of the initial advance ruling. In this event, modification or revocation shall apply as of the date of the change and in no case may it be applied retroactively to situations that occurred while the ruling was in effect; or c) When the decision must be modified due to changes introduced in the norms that served as its basis. In this event, modification shall apply only as of the date the norms are modified and in no case may it be applied retroactively to situations that occurred while the ruling was in effect. In the cases provided for in sections b) and c), the competent authority shall make the revised information available to interested parties with sufficient advance notice of the date the modifications become effective, so that they may take them into account, except when it is impossible to publish them in advance.

Publication of rulings. The competent authority shall publish final advance rulings on its Internet website. For the purpose of preserving confidentiality in accordance with the provisions of the national legislation of each Member State, the competent authority must maintain information supplied with confidential character by the applicant. Final advance rulings shall also be distributed to all customs offices, beginning with the office where the goods will be declared.

Binding nature of advance rulings. Advance rulings are mandatory for individuals and for the competent authority at the time of their presentation in all imports that present identity in the facts and circumstances that originated their issuance.

Prior examination. For the purposes of Article 74 of the Code, the declarant or his representative shall have the right to conduct a prior examination of the goods to be dispatched. To conduct the prior examination of the goods, the warehouse keeper shall be obliged to provide the necessary facilities to the consignee for the conduct of such diligence.

Conduct of prior examination. During the prior examination, no acts that modify or alter the nature and quantity of the goods shall be permitted. In the declaration of goods, it shall be indicated that a prior examination was conducted, when such examination was performed. The warehouse keeper must take the pertinent measures for preservation and safekeeping during the conduct of the prior examination. In the case of goods located in premises under the custody of the Customs Authority, a request shall be submitted to such Authority, in which the intention to physically examine the goods is stated. A report of the prior examination shall be drawn up and signed by the person who conducted it and by the representative of the warehouse keeper, with such report remaining in the custody of the warehouse keeper.

Discrepancies during prior examination. In case discrepancies are found regarding supporting documentation at the time of conducting the prior examination, the designated Customs Authority or the representative of the warehouse shall verify the fact and shall record it in a report that shall be communicated immediately to the Customs Authority. A copy of such report may be attached to the respective customs declaration.

Correction of transport documents. Data contained in transport documents may be modified through a correction letter issued by the carrier at the place of shipment or by the agent or representative of the shipper in the Member State, as appropriate. Such corrections shall be made prior to the dispatch of the goods.

Sample extraction. The customs office under whose control the goods are located may, ex officio or at the request of the interested party, extract or authorize the extraction of samples of the goods, respectively, prior to dispatch. When the customs office acts ex officio, it shall inform the consignee or his representative beforehand. Such sample extraction shall not affect the nature of the goods and shall be subject to the procedure established in Article 344 of this Regulation. If physical or chemical analysis of the extracted sample is requested, the cost of the service shall be borne by the interested party. If the analysis is ordered by the Customs Authority or any other government authority, it shall be at no cost to the consignee or his representative.

Border measures regarding intellectual property. The customs services of the Member States shall have jurisdiction to enforce border measures regarding intellectual property on goods that may be infringing intellectual property rights, in accordance with the applicable legislation. Border measures shall be understood as those applied by the Customs Authority aimed at the proper observance and defense of industrial property rights, copyright and related rights. The customs authorities shall intervene for the application of border measures based on resolutions from the competent authority or ex officio when appropriate and upon complaint by the duly accredited rights holder, prior to the constitution of a guarantee to indemnify possible damages to the consignee of the goods. The Customs Authority may retain the goods as a precautionary measure and prevent their dispatch. Subsequently, it shall notify the holder of the supposedly infringed intellectual property rights so that the latter may initiate the corresponding legal actions. If it does not do so, the Customs Authority may proceed to authorize the dispatch of the goods, except where there is well-founded suspicion of a crime, in which case the goods shall be placed at the disposal of the competent authority. Prior to an order from the competent authority, the Customs Authority may proceed to the destruction of goods that infringe protected intellectual property rights, when appropriate.

Declaration of goods. All goods, in order to be placed under a customs regime, must be covered by a declaration of goods. The obligation to declare also includes goods that are duty-free and those that in any way enjoy exemption or franchise. The foregoing shall not be an obstacle to the application of prohibitions or restrictions justified by reasons of public order, morality and public security, protection of health, the environment, the life of persons, flora and fauna, protection of national artistic, historical or archaeological heritage or protection of intellectual property.

Form and means of presentation of the declaration of goods. The declaration of goods shall be presented by electronic transmission or in the forms or formats authorized by the Customs Service, prior to compliance with customs formalities and advance payment of rights and taxes by electronic means, when applicable. When the nature of the regime permits, simplified declarations may be presented, in which case the Customs Service shall establish the minimum necessary data that such declarations shall contain. The use of electronic means and electronic transmission for the exchange of information shall have full validity for the formulation, transmission, registration and filing of the declaration of goods, the information related thereto and the documents that must be attached thereto.

Conditions for the presentation of the declaration of goods. For the presentation of the declaration of goods, the following conditions must be met, among others:

• a)

  It must be related to a single customs regime;

• b)

  It must be made in the name of persons who have the right of disposal over the goods, except for legal exceptions;

• c)

  The goods must be stored in the same warehouse or in the same location;

• d)

  The arrived goods must be consigned in the respective cargo manifest, even if they are covered by one or more transport documents, except for legal exceptions; and e) Others that are legally established.

Content of the merchandise declaration. The merchandise declaration shall contain, according to the customs regime in question, among other data, the following:

• a)

  Identification and tax registration of the declarant;

• b)

  Identification of the customs agent or special customs representative, when applicable;

• c)

  Identification code of the carrier and the means of transport;

• d)

  Customs regime requested;

• e)

  Country of origin and provenance; and, where applicable, country of destination of the merchandise;

• f)

  Number of cargo manifest, when applicable;

• g)

  Characteristics of the packages, such as quantity and type;

• h)

  Gross weight in kilograms of the merchandise;

• i)

  Tariff code and commercial description of the merchandise;

• j)

  Customs value of the merchandise; and k) Amount of the customs tax obligation, when applicable. In the case of merchandise susceptible to individual identification, the serial numbers, brand, model or, failing that, the technical or commercial specifications shall be declared. In the case of merchandise susceptible to being individually identified, the serial numbers, brand, model or, in their absence, the technical or commercial specifications shall be declared.

Documents supporting the merchandise declaration. The merchandise declaration shall be supported, according to the customs regime in question, among others, by the following documents:

• a)

  Commercial invoice when it is an international purchase and sale, or equivalent document in other cases;

• b)

  Transport documents, such as: bill of lading, bill of haul, air waybill or other equivalent document;

• c)

  Declaration of customs value of the merchandise, where applicable;

• d)

  Certificate or certification of origin of the merchandise, when applicable;

• e)

  Licenses, permits, certificates or other documents referring to compliance with non-tariff restrictions and regulations to which the merchandise is subject, and other authorizations;

• f)

  Guarantees required by reason of the nature of the merchandise and the customs regime to which it is destined; and g) Document that supports the exemption or franchise, where applicable. The documents previously listed shall be attached in original to the merchandise declaration, except for the exceptions established in this Regulation, or may be transmitted electronically to the Customs Service computer system and in this case shall produce the same legal effects as those written on paper support. When it is a case of definitive imports and when the Customs Service requires it, the export, reexport declaration or equivalent document of the exporting country shall be attached to the merchandise declaration, as established by said Service.

Documents for partial withdrawals. When a transport document covers merchandise destined for two or more regimes, the number of the merchandise declaration where the original documents that covered the clearance are found shall be indicated. The customs services may provide that for such purpose certified photocopies by the Customs Authority be used. The use of photocopies certified by the Customs Authority of the supporting documents shall also be permitted when partial clearances need to be made. In both cases it must be the same consignee, and the merchandise declarations where the photocopies are used shall note the number of the merchandise declaration where the original supporting documents are attached.

Commercial invoice. The Customs Service may provide that the commercial invoice be formulated in the Spanish language or that its corresponding translation be attached. Said commercial invoice shall contain at a minimum the following information:

• a)

  Name and address of the seller;

• b)

  Place and date of issuance;

• c)

  Name and address of the buyer of the merchandise;

• d)

  Detailed description of the merchandise, by brand, model or style;

• e)

  Quantity of the merchandise;

• f)

  Unit and total value of the merchandise; and g) Terms agreed with the seller. When the commercial description of the merchandise included in the commercial invoice comes in code or ciphers, the importer shall attach to the invoice a list of the information properly decoded.

Content of the transport document. The transport document shall contain, at a minimum, the following information:

• a)

  Mention of the means of transport (air, land, maritime) and name of the vehicle in the case of maritime traffic and flight number, in the case of air traffic;

• b)

  The name, corporate name or denomination of the shipper, the carrier and the consignee, where applicable;

• c)

  The port of loading or shipment and of unloading;

• d)

  Type and quantity of the packages;

• e)

  Generic description of its contents;

• f)

  Gross weight in kilograms;

• g)

  Value of the freight contracted and other charges;

• h)

  Identification number of the transport document that allows its individualization; and i) The place and date of issuance of the document.

Transmission of the transport document. The bill of lading, the air waybill and the bill of haul shall constitute a representative title of merchandise and the regulations relating to negotiable instruments in force in the Member States shall be applicable to them. When the transmission is total, it shall be made by endorsement. When the transmission is partial, it shall be made by assignment of rights in the cases and conditions established by the senior authority of the Customs Service.

Inadmissibility of the declaration. If the merchandise declaration presents inconsistencies or errors, or in general, if the necessary requirements for the application of the requested regime have not been met, the merchandise declaration shall not be accepted and shall be returned to the declarant for correction and subsequent presentation, through the same electronic means or other authorized means, as appropriate. The grounds for non-acceptance of the merchandise declaration may be, among others, the following:

• a)

  There exists a discrepancy between the inventory or record of merchandise found in the Customs Service computer system and the clearance requested;

• b)

  All available spaces in the merchandise declaration have not been filled when it is mandatory to complete them, in accordance with the regime or modalities requested;

• c)

  There exists contradiction in the information transmitted electronically, between the same data of the merchandise declaration or these in relation to the information registered;

• d)

  When there exists disagreement between the information contained in the merchandise declaration and that established in the documents that support it;

• e)

  When all the documents required in accordance with the nature of the regime in question are not provided or transmitted electronically;

• f)

  The applicable taxes have not been paid or guaranteed, when appropriate; and g) Others that the Customs Service may establish. When it is verified that the electronic transmission of the merchandise declaration was made improperly using an access code to the Customs Service computer system, it shall give rise to the annulment of its acceptance and to the deduction of the corresponding responsibilities.

Clearance with partial or staggered discharge. For shipments in which, by their nature, merchandise cannot be transported in the same means of transport, clearance may be made with a single merchandise declaration, in the following cases:

• a)

  Operations carried out by railroad;

• b)

  Disassembled machinery or complete prefabricated production lines disassembled;

• c)

  Merchandise in bulk of the same species;

• d)

  Metal sheets and wire in rolls;

• e)

  Paper bobbins; and f) Shipments of merchandise of the same quality and, where applicable, brand and model, as long as they are classified in the same tariff item. The provision in this subsection shall not apply when merchandise is susceptible to individual identification by containing a serial number. In such cases, the merchandise declaration shall be presented at the time of clearance of the merchandise contained in the first means of transport, which shall indicate the total number of vehicles in which the partial or staggered clearances associated with said declaration shall be made. For subsequent clearances a control of partial or staggered discharge shall be kept in which the fractional number corresponding to it is indicated and a report or copy of the merchandise declaration that covers the shipment, which must be submitted to the risk analysis system.

Minimum data for partial or staggered discharge. For cases in which the process of partial or staggered discharge is used, the following minimum data shall be presented:

• a)

  Number of merchandise declaration to which it belongs;

• b)

  Fractionation to which it corresponds;

• c)

  Consignee of the merchandise;

• d)

  Description of merchandise; and e) Gross weight in kilograms.

Invoice for different shipments or partial clearances. When the commercial invoice covers two or more shipments and which enter on different dates, to the subsequent merchandise declarations a copy of the invoice certified by the Customs Authority shall be attached, unless such control is carried out through the computer system.

Advance declaration. For purposes of Article 80 of the Code, the merchandise declaration may be presented in advance of the arrival of the merchandise, when said merchandise is destined for the following regimes:

• a)

  Definitive import and its modalities;

• b)

  Temporary import with reexport in the same state;

• c)

  Temporary admission for active processing;

• d)

  Free zones;

• e)

  Reimportation, including those merchandise that are reimported under the regimes of temporary export with reimportation in the same state and temporary export for passive processing; and f) Others that the Customs Service may establish. Merchandise entered under consolidated transport documents may not be subject to advance declaration. Likewise, other merchandise that will not be subject to advance declaration may be established by the senior authority of the Customs Service, in view of requirements for physical infrastructure and technology necessary to process these declarations and exercise adequate control.

Provisional declaration. The merchandise declaration may be authorized provisionally by the Customs Service, in the case of clearance of merchandise in bulk and others that the senior authority of the Customs Service may establish.

Formalities of the provisional declaration. For purposes of the preceding Article, the total cargo manifested shall be declared and the taxes shall be duly paid, or where applicable, guaranteed when the senior authority of the Customs Service authorizes it, without prejudice to the fact that the merchandise may be subjected to immediate verification. The departure of the merchandise may be made through partial withdrawals, which shall be transmitted electronically and validated in the computer system. The definitive declaration shall be presented within five days following the completion of the loading or unloading of the merchandise object of the merchandise declaration except for periods established by specific regulations. In the case of other merchandise, the period shall be fifteen days from the date of authorization of the provisional declaration. The Customs Services may set a different period for merchandise imported by State institutions.

Procedure for rectification of the declaration. At any time the declarant has reasons to consider that a declaration contains incorrect information or with omissions, he shall immediately submit a request for rectification. If the request for rectification is admissible, he shall transmit the rectified merchandise declaration and accompany it, where applicable, with proof of payment of the taxes plus payment of the corresponding interest when applicable. If at the time the request for rectification is presented, the initiation of an inspection procedure has been notified, automatically said request shall form part of the procedure, provided that it has not concluded. For these purposes, the inspected party shall inform the acting officials of the existence of the request, which shall be considered for the final settlement of the customs tax obligation. In any case, the request for rectification shall be resolved when the inspection procedure concludes. The inspected parties may rectify the merchandise declarations, taking into account the following aspects:

• a)

  The rectification shall have the character of a petition subject to approval by the Customs Authority.

• b)

  In cases of determinations by the Customs Authority, the inspected party may rectify the merchandise declaration after the conclusion of the inspection action has been communicated and until the resolution that determines the tax obligation becomes final.

• c)

  The rectification of the merchandise declaration may also cover any item or element that affects the tax base. The submission of the request, or the rectified merchandise declaration shall not prevent the exercise of inspection actions or determination of responsibilities that correspond.

Acceptance of the merchandise declaration. The merchandise declaration shall be understood as accepted once it is validated and registered in the Customs Service computer system or other authorized means.

Risk Analysis Methodology. The declaration of merchandise accepted by the Customs Service shall be submitted to the risk analysis system, within the timeframe established by the Customs Service, to determine whether immediate verification of the declared information is warranted. When, in accordance with the application of risk analysis, immediate verification of the declared information is warranted, the customs agent, or the declarant or the special customs representative shall present to the Customs Service the documents that support the merchandise declaration. Such documents shall be presented within the timeframe set by the Customs Service.

Immediate Verification. Immediate verification may consist of documentary review or physical and documentary examination in order to verify the exact compliance with customs obligations. Documentary review shall consist of the analysis, by the Customs Authority, of the declared information and its comparison with the documents that support the merchandise declaration and other information requested from the declarant or his representative and that is contained in the files or database of the Customs Service. Physical and documentary examination is the act that allows the Customs Authority to verify physically and documentally the compliance with the determining elements of the customs tax obligation, such as nature, origin, provenance, weight, tariff classification, condition, quantity, value, and other characteristics or conditions that identify and individualize them. Physical and documentary examination may be conducted in whole or in part, in accordance with the guidelines or general criteria issued by the Customs Service and shall be conducted within twenty-four hours following the time the merchandise is made available to the customs official designated to conduct such procedure, unless the Customs Authority requires a longer timeframe, in accordance with the characteristics and nature of the merchandise.

Disposition of Merchandise. The declarant shall make the merchandise available to the designated customs official so that he may conduct the physical examination, within the timeframe set by the Customs Service, the declarant remaining responsible for the opening of packages, their grouping, and other operations necessary to facilitate their examination.

Handling at the Declarant's Account. When the merchandise to be examined requires the application of measures, including technical or specialized measures, to handle, move, or examine it, the Customs Authority shall require the declarant or his representative to assign personnel at its disposal, within forty-eight hours, counted from the time of the request. If the declarant or his representative fails to comply, the Customs Authority is authorized to contract, at the account and risk of the declarant, the pertinent services. Within the same timeframe, the declarant or his representative shall also provide to the Customs Authority, when required, the technical reports that allow full identification of the merchandise, such as catalogs, industrial designs, plans, brochures, and others.

Verification without Concurrence of the Declarant or His Representative. The Customs Authority shall proceed ex officio with the verification and review of the determination of the customs tax obligation based on available information, without prejudice to the sanctions or complaints that correspond against the responsible auxiliaries and the declarant, when the immediate verification process cannot be conducted within the timeframes indicated in Article 336 of this Regulation, because the interested parties:

• a)

  Do not present the documents that supported the electronic transmission of the declaration, required by the Customs Authority;

• b)

  Do not present other information requested from the declarant or customs agent;

• c)

  Have not provided the customs official with the facilities or complied with the technical measures to conduct the physical examination of the merchandise, in accordance with applicable legal provisions; or d) Due to a complaint received by the Customs Authority or another competent authority.

Effects of Physical Examination. When the physical examination comprises only part of the merchandise subject to the same declaration, the results of the examination shall extend to the other merchandise of the same tariff nature.

Sample Extraction in the Verification of Merchandise. The Customs Authority, in the process of immediate verification, may extract samples in accordance with the conditions and procedures established in this Regulation. The extracted sample shall constitute a certified sample for all legal purposes.

Return of Samples. The sample shall be returned to the interested party without damage to it, except when, as a result of the analysis to which it is subjected, it is totally consumed or destroyed. The Customs Authority shall keep the sample in its possession for the time necessary to conduct its analysis.

Tax Obligation in Case of Sample Destruction. In the event that taxes have not been paid, the value of the sample destroyed in the examination process shall be deducted from the taxable base of the resulting customs tax obligation, unless the destruction is attributable to the interested party. In the event that the respective taxes have been paid on the samples consumed, rendered useless, or destroyed during the analysis to which they were subjected, the declarant or his representative shall be notified so that he may request the return of the taxes corresponding to them.

Sample Extraction Procedure. When the extraction is conducted during the act of verification, it shall be recorded in a report, which shall contain the names of those present, the place, date, and time, a detailed description of the samples, the packaging used to protect them, and any other circumstance that may have affected the act, of which a record shall be made in the computer system. This procedure shall not prevent the release of the merchandise, unless the possible commission of a customs tax or criminal infraction is detected, in which case the pertinent actions shall be initiated immediately. When the result of the analysis is concluded, the interested party shall be notified that the samples are at his disposal and that if not withdrawn within one month, counted from such notification, they shall cause abandonment.

Shipment of Samples. The Customs Service shall remit the certified samples to the place where the analysis will be conducted by the fastest means available to it, unless the sample extraction was conducted, where applicable, by the personnel of the customs laboratory, another laboratory recognized by the Customs Service, or a particular customs office, in which case a record of that act shall be made. The laboratories and customs offices that receive the samples shall establish the necessary records and controls to identify the officials who custody or handle them in any manner. When it is determined that a theft or improper handling has occurred, administrative or judicial procedures shall be initiated to establish the corresponding responsibilities.

Non-requirement of Sample. For purposes of determining the customs value of the merchandise, it shall not be necessary to extract samples when it is fully identifiable through brand, model, serial number or manufacturer's catalog, technical data sheets, or other documents that provide criteria for the establishment of its valuation.

Place of Examination. The physical examination of merchandise shall be conducted at the facilities or places authorized for those purposes by the Customs Authority. Examination may be authorized at other facilities, in the special cases established in Article 258 of this Regulation.

Concurrence of the Declarant or His Representative in Physical Examination. The declarant or his representative have the right to witness the physical examination of the merchandise. If the declarant or his representative does not appear, the procedure shall be conducted as established in Article 339 of this Regulation. Without prejudice to what is established in the preceding paragraph, the Customs Authority may require the mandatory presence of the declarant or his representative at the time of physical examination, so that he may provide the necessary information in the execution of the act. Once immediate verification is initiated, the designated customs official is responsible for its completion. In the event that the related official cannot complete the immediate verification, the respective Customs Authority shall designate another official to conduct such operation, leaving a record of this change in the corresponding report or document.

Results of Immediate Verification. If there is conformity between what was declared and the result of immediate verification, release shall be granted. When the results of immediate verification demonstrate differences related to tariff classification, value, quantity, origin of the merchandise, or other information provided by the declarant or his representative regarding the compliance with customs obligations, the Customs Authority shall make the corresponding corrections and adjustments to the merchandise declaration and shall initiate, if applicable, administrative and judicial procedures to determine the actions and responsibilities that correspond, unless the customs services regulate differently the treatment of the differences indicated above. Without prejudice to the corresponding administrative procedure, the Customs Service may authorize the release of merchandise, prior to the presentation of a guarantee that covers the rights and taxes, fines, and surcharges that may be applicable.

Authorization of Release. The Customs Service shall authorize the release of merchandise in the following cases:

• a)

  When the declaration of merchandise is presented and immediate verification is not required;

• b)

  If immediate verification is carried out and no discrepancies are found with the declaration of merchandise or non-compliance with necessary formalities for authorization of the requested regime; or c) When immediate verification is carried out and discrepancies with the declaration of merchandise are found, provided that these are corrected, adjustments and fines are paid, or in cases where the Customs Authority requires it, the corresponding guarantee is rendered. Release shall not be authorized in the case provided for in subsection c) of the preceding paragraph, when the merchandise is subject to administrative or judicial seizure in accordance with the law.

Authorization of Release by Guarantee. The declarant or their representative shall file a request with the Customs Authority for authorization to release merchandise with guarantee in the manner indicated in subsection c) of Article 350 of this Regulation. The Customs Authority or the competent organ, as applicable, shall execute the guarantee ex officio when the determination of the tax obligation becomes final and, if applicable, is not paid within the respective legal term. The customs services shall provide other means to authorize the release of merchandise by rendering a guarantee. In all cases, authorization for release by guarantee shall not apply when such authorization would result in the non-application of non-tariff restrictions and regulations.

Guarantee. When authorization is granted for the release of merchandise, prior to rendering a guarantee, the guarantee shall be constituted in the form and conditions established in Articles 52 and 53 of the Code.

Dangerous and Perishable Merchandise. Priority shall be given to the clearance of dangerous merchandise, such as: explosive, flammable, corrosive, contaminating and radioactive materials; as well as perishable or easily decomposable merchandise; and others that in the judgment of the Customs Authority warrant it.

Merchandise in Bulk. In the case of imports of merchandise in bulk, when the combined weight or volume establishes an excess of up to five percent of the same declared in the declaration of merchandise, no administrative penalty shall be applied and payment of the respective customs duties shall be required, through the rectification of the corresponding declaration of merchandise, which may be presented after the merchandise exits the customs warehouse. When the combined weight or volume establishes a shortage of up to five percent of the same, at the request of the interested party, the shortage shall be noted in the record.

Preservation of Documents. When the risk analysis system authorizes automatic release or release without immediate verification of the merchandise, the declaration and supporting documents shall be filed by the declarant, when applicable. In this case, the declarant must preserve the documentation at the disposal of the Customs Authority for the period established in Article 87 of the Code. When the risk analysis system determines that immediate verification of the declaration is required, the declaration of merchandise and supporting documents shall be filed by the Customs Service, when it so determines. The Customs Service shall preserve the documents that have been transmitted and received in electronic form and that support the declaration of merchandise, in accordance with what is established in the penultimate paragraph of Article 321 of this Regulation.

Non-Self-Assessed Declaration. The determination of the customs tax obligation shall be made by customs officials in the following cases:

• a)

  Importation of merchandise other than baggage, carried out by travelers;

• b)

  Relief shipments;

• c)

  Non-commercial postal shipments;

• d)

  Small shipments without commercial character; and e) Other cases established in this Regulation or indicated by the Customs Service.

Subjection to a Customs Regime. All merchandise entering or leaving the customs territory shall be subject to any of the regimes indicated in Article 91 of the Code, and must comply with the legally established requirements and procedures.

Declaration of Merchandise of Central American Origin. Merchandise originating from the State Parties shall be declared in the Central American Uniform Customs Form, through electronic transmission, under the conditions established by the regional regulations that govern it.

Merchandise Benefited by Commercial Agreements. Merchandise benefited by preferential tariff treatments contemplated in commercial agreements shall be indicated in the declaration of merchandise and shall be accompanied by a certificate or certification of origin in accordance with such agreements. Merchandise benefited by preferential tariff treatments contemplated in commercial agreements may be included in the declaration of merchandise with non-benefited merchandise, provided that they are accompanied by a certificate or certification of origin.

Security and Identification Devices. The Customs Service shall adopt measures that allow the identification of merchandise, when necessary to guarantee compliance with the conditions of the customs regime for which the merchandise is declared. Security devices placed on merchandise or means of transport may only be removed or destroyed by the Customs Authority or with its authorization, except in cases of fortuitous event or force majeure duly proven to the satisfaction of the Customs Service.

Conditions of Application. The application of the definitive importation regime shall be conditioned to the payment of duties and taxes, when applicable, and compliance with non-tax customs obligations.

Content of the Declaration of Merchandise for the Regime. The declaration of merchandise for the definitive importation regime shall contain, in addition to what is established in Article 320 of this Regulation, the following:

• a)

  Data on the port of loading or shipment and transport used;

• b)

  Amount of the customs tax obligation, other applicable charges, exchange rate and application of exemptions, tariff preferences and payment made or guarantees rendered, if applicable;

• c)

  Identification of mandatory documents, in accordance with this regime;

• d)

  Value of insurance premium and freight and amount declared in invoice; and e) Number of the transport document.

Acceptance and Verification of the Declaration of Merchandise. The declaration of merchandise for importation shall be considered accepted at the time established in Articles 83 of the Code and 334 of this Regulation. Once the declaration of merchandise is accepted and customs duties are paid, when applicable, the risk analysis system shall determine whether immediate verification should be carried out or authorization for release of the merchandise should be granted.

Substitution of Merchandise. The substitution of merchandise, regulated in Article 88 of the Code, shall be authorized, when applicable, by the Customs Service. The request for substitution shall be presented within one month following the release of the imported merchandise, with an indication of the following information:

• a)

  Specification of the hidden defects present in the merchandise or indication of the reasons why it is considered that they do not comply with the terms of the respective contract, if applicable;

• b)

  Detailed description of the imported merchandise and of the merchandise that will substitute it;

• c)

  Declaration from the foreign supplier that certifies the commercial substitution transaction or that admits non-compliance with the respective contract;

• d)

  Certified copy of the respective contract, in the event that non-compliance with the contract is alleged as the ground; and e) The arguments, documents, expert reports and technical specifications necessary to prove the hidden defects of the merchandise.

Conditions for substitution. Substitution of merchandise shall be authorized when the following conditions are met:

• a)

  When the substitution request has been filed by the declarant or his representative and within the period referred to in the preceding Article;

• b)

  That the merchandise to be substituted is fully identifiable and individualized by means of numbers, series, models or similar means;

• c)

  That the merchandise to be substituted is in the same quantity and condition as it was when imported;

• d)

  When the definitive import declaration makes it possible to verify that the declared merchandise is the same as that presented for substitution; and e) Any others required by the Customs Service. The definitive export of the merchandise to be substituted shall not give the declarant the right to enjoy the tax benefits granted for this operation.

Authorization procedure. Once the substitution request for merchandise is received, the Customs Service shall verify that it complies with the required requirements and that the conditions set forth in Articles 364 and 365 of this Regulation are met and, if appropriate, shall authorize the definitive export for substitution of merchandise to which shall be attached a copy of the authorization granted, as well as a copy of the customs declaration of import originally presented. Prior to authorization, the Customs Service may order the tests or inspections it deems relevant.

Rejection of the request. The Customs Service shall not authorize the request when it does not comply with the requirements and conditions established in Articles 364 and 365 of this Regulation.

Effects of substitution. In case the substitution authorization request is granted, the Customs Service shall issue a resolution voiding the merchandise declaration that covers the merchandise to be substituted and shall offset the duties and taxes paid thereon against the merchandise declaration that covers the substitute merchandise, in the case of identical or similar merchandise of equal value. If not, the declarant shall pay the differences when a greater tax obligation is determined or, as the case may be, the importer may request from the competent authority the refund of the sums paid in excess. Upon return of the substituted merchandise, the customs declaration of definitive import merchandise shall be presented, to which shall be attached a copy of the customs declaration of import originally made, a copy of the definitive export declaration and a copy of the authorization granted by the Customs Service, together with the documents that, in accordance with Article 321 of this Regulation, support the merchandise declaration. The preceding actions may be carried out through applications developed in the computer system of the Customs Service. Authorization of merchandise substitution shall not relieve the declarant or his representative from responsibility for any customs violations that may have been committed. In all cases, the merchandise shall be subject to physical inspection by the Customs Authority.

Definitive character of obligations arising from import. The definitive export of merchandise that has been definitely imported into the customs territory of a Member State shall not give the importer the right to a refund of the duties and taxes that have been paid as a result of the import, except in the cases provided for in Article 88 of the Code and Article 368 of this Regulation. CHAPTER III DEFINITIVE EXPORT

Declaration. The merchandise declaration for the definitive export regime shall contain, in addition to the information established in Article 320 of this Regulation, insofar as applicable, the following:

• a)

  Identification of the consignee;

• b)

  Identification of the reference number of the merchandise declaration, exit customs house and inspection customs house;

• c)

  Identification of the port of embarkation, where applicable;

• d)

  Net weight of the merchandise;

• e)

  Free on board (FOB) value declared in the invoice;

• f)

  Value of insurance and freight, when applicable; and g) Identification of documents relating to compliance with non-tariff restrictions and regulations.

Supporting documents. The merchandise declaration shall be supported by the documents mentioned in Article 321 of this Regulation, except those indicated in subparagraphs c), d), f) and g).

Minimum requirements for export. Registered exporters shall submit or transmit electronically, prior to export, the merchandise declaration with the minimum necessary information established by the Customs Service through administrative provisions, which shall be submitted to the risk analysis system. The export shall be perfected through the presentation of the merchandise declaration and complementary information, within three days following the shipment of the merchandise, confirming payment for the difference in duties, where applicable.

Merchandise declaration issued ex officio for export. The Member States may dispense with the presentation of the merchandise declaration, when such merchandise does not exceed an amount established by the Customs Service through administrative provisions and complies with the conditions established by it, in which case the commercial invoice may be accepted to document the departure of the merchandise, and the Customs Authority shall issue the export declaration ex officio, provided that, where applicable, compliance with non-tax obligations is verified.

Acceptance and verification of the merchandise declaration. Once the merchandise declaration is accepted and the customs duties, where applicable, are paid, it shall be determined by the risk analysis system whether immediate verification should be performed or whether the merchandise may be released.

Authorization of merchandise release. The release of merchandise shall be authorized when the risk analysis system has determined release without verification, or, having conducted immediate verification, no differences are found between the information declared and that verified. Release authorization shall also be granted when, although differences have arisen, they have been remedied.

Cumulative merchandise declaration. Habitual exporters who are registered may, with prior authorization from the Customs Service, make a cumulative declaration within the first five days of each month of the exports made by the same customs house during the preceding calendar month, provided that a favorable record of compliance with customs and tax regulations for at least five consecutive fiscal years is demonstrated. Once authorized, the cumulative export merchandise declaration before the exit customs house shall be accompanied by documentation corresponding to each transaction carried out. The exporter who fails to comply with the period referred to in the first paragraph of this Article shall no longer enjoy the facility provided for in this Article.

Procedure for physical inspection of merchandise. Should physical inspection be required, the customs house shall immediately notify the declarant and shall designate the official in charge of conducting it. The designated official shall appear at the authorized facilities and shall proceed with the physical inspection within a maximum period of six hours from when the merchandise is placed at his disposal. In that act, he shall verify the quantity of packages, the net and gross weight of the merchandise, verify the conditions of the means of transport, inspect the loading operation of the merchandise and corroborate the security devices of the means of transport, where applicable. If the result of the physical inspection is in accordance with the information declared to the customs house, the official shall immediately authorize the release of the merchandise, shall notify the inspection customs house of the quantity of packages or merchandise loaded and the date and time of departure of the means of transport and the identification of the security devices placed, where applicable.

Discrepancies arising from physical inspection. If as a result of the physical inspection differences are detected between what was declared and the information that should have been declared, the official shall record and report it to the corresponding customs house. At that same time, he may take security measures with respect to the merchandise if the differences concern its nature. In that case, the corresponding corrections and adjustments of the merchandise declaration must be made and the Customs Service shall initiate, where appropriate, administrative and judicial proceedings to determine the actions and responsibilities that correspond. The differences determined shall not interrupt the dispatch of the merchandise, unless due to the nature of the violation the merchandise must remain as evidence.

Physical inspection at exporter's facilities. The Customs Service may authorize, upon request of a habitual exporter, that the physical inspection be carried out at the exporter's facilities, or at the processing or industrial plant where the packaging and loading of merchandise takes place. The Customs Service may establish that the costs for services incurred in conducting the inspection, for the case established in this Article, shall be borne by the applicant, in accordance with the tariffs established through administrative provisions.

Clearance without physical inspection. In case physical inspection is not required, the exporter and the person in charge of the authorized facilities, as applicable, shall be responsible for supervising the packaging and loading operations of merchandise in the transport unit and communicating, through electronic transmission to the corresponding customs office, the quantity of parcels or merchandise loaded, the date and time of departure of the vehicle and transport unit, and the identification of security devices placed, as applicable.

Communication from the corresponding customs office to the exit customs office. In case the merchandise is destined for a customs office other than the corresponding one, the latter shall communicate to the exit customs office the authorization of the export with the data on the time of departure of the transport means and the security devices placed, when applicable. Without prejudice to the exercise of its control and inspection powers, the Customs Authority, through the exit customs office, shall limit itself to verifying the data of the transport means and the identification of seals or locks placed, when applicable.

Authorization of habitual exporters' facilities. The Customs Service may authorize the applicant's facilities as a primary zone or customs operation zone, taking into account the needs of the habitual exporter and the conditions of security, infrastructure, and the human and logistical resources available to said Service to conduct customs control in those facilities.

Authorization request. For the purposes of the preceding Article, the exporter shall submit to the Customs Service the respective request, with the following information:

• a)

  Name, corporate name or legal designation and other general information of the exporter;

• b)

  Address and means for receiving notifications related to the request;

• c)

  Exact location of its facilities, specifically indicating those intended for cargo loading operations for export;

• d)

  Detail the exports of the last two years, indicating the description, total free on board (FOB) value, weight or volume, unit of measure, and tariff classification of the merchandise;

• e)

  Indication of fiscal and export incentives and benefits, when applicable; and f) Documents that certify that it carries out a minimum of twelve exports per year.

Documents to be attached to the request. The request shall be accompanied by the following documents:

• a)

  In the case of legal entities, notarial or registered certification of the incorporation deed;

• b)

  In the case of natural persons, certified or legalized copy of the identity document;

• c)

  Original or certified or legalized copy of the document that accredits representation, if applicable;

• d)

  Certification issued by the competent authorities that the applicant is current in the payment of all its tax obligations; and e) Certification from an authorized public accountant regarding the number and amount of exports made by the applicant in the previous calendar year.

Authorization procedure. Once the request is submitted, the Customs Service shall verify compliance with the required conditions and shall issue the authorization or rejection resolution as appropriate, within a period of one month counted from the moment the file is in condition to be resolved. In case the request has been submitted in a defective manner, a period of ten days shall be granted to correct what is necessary. Upon expiration of said period without the applicant complying with what is required, the filing of the proceedings shall be ordered without further procedure.

Requirements of authorized facilities. The facilities shall comply with the following conditions:

• a)

  Be located in places that offer adequate conditions for the loading operations of transport units, in accordance with the provisions established by the Customs Service;

• b)

  Have sufficient space and adequate conditions for the handling and loading of merchandise, at the judgment of the Customs Authority; and c) Those required by environmental safety and labor regulations and those established by the Customs Service, through administrative provisions, for the proper performance of the functions of verification and inspection of transport means and merchandise.

Obligations. Authorized habitual exporters shall:

• a)

  Submit to the Customs Service annually the financial statements of the last fiscal period;

• b)

  Submit annually to the Customs Service, certification from an authorized public accountant regarding the number and amount of exports made by the exporter in the previous year;

• c)

  Inform the Customs Service of any changes in fiscal and export incentives and benefits, when applicable;

• d)

  Provide preventive and corrective maintenance to their authorized facilities and maintain at the disposal of the Customs Authority the personnel and equipment necessary to conduct inspections and verifications of merchandise and customs declarations; and e) Keep copies of the declarations of merchandise under the export regime and its corresponding transport document. Non-compliance with the provisions of this Article shall imply the temporary loss of the benefits contemplated in this Chapter, until such obligations are fulfilled.

Exceptions. The Customs Service may exempt a specific category of merchandise from the application of this procedure. It may likewise suspend or cancel the application of this procedure to the habitual exporter who fails to comply with the legal or regulatory conditions, without prejudice to the applicable sanctions.

Supplementary application. For matters not provided for in this Chapter, the provisions regarding definitive importation established in this Regulation shall apply, to the extent applicable. CHAPTER IV CUSTOMS TRANSIT SECTION I VEHICLES AUTHORIZED FOR CUSTOMS TRANSIT

Authorization of vehicles. Customs transit shall be effected only through means of transport registered with the Customs Service. Transport means with license plates from the Member States used to carry out customs transit may enter and circulate in the customs territory, upon compliance with the required formalities. These units may be used, upon their departure from the customs territory through any customs office, for the transport of cargo destined directly for export or reexport and may not provide internal merchandise transport services. Vehicles with license plates from the Member States shall be governed by regional agreements and international treaties.

Customs transit in non-sealable transport units. When the transit of merchandise takes place in transport units to which it is not possible to place security devices, the Customs Authority shall establish the necessary security conditions to carry out customs transit, such as verification of merchandise, sampling, requirement of the commercial invoice of the merchandise or placement of seals or identification marks on each parcel, use of tarps, bands, special fasteners, and other components to secure the cargo.

Data of the merchandise declaration. The merchandise declaration for internal transit, in addition to the applicable data established in Article 320 of this Regulation, shall contain at least:

• a)

  Identification of security devices;

• b)

  Identification of the customs office and place of destination;

• c)

  Name of the consignee;

• d)

  Number and date of the transport document such as: bill of lading, air waybill, or bill of carriage, individualized;

• e)

  Number and date of the commercial invoice(s) associated with the merchandise when it is an international sale, or equivalent document in other cases;

• f)

  Value of the merchandise according to the commercial invoice, when it is an international sale, or equivalent document in other cases;

• g)

  Date and signature of the declarant; and h) Others that the Customs Service may determine.

Documents supporting the merchandise declaration. With the merchandise declaration for internal transit, it shall be required that the documents referred to in subsections a), b), and e) of Article 321 of this Regulation be attached, being able to be copies in the case of the first two subsections. As regards the document referred to in subsection f) of the same Article, it shall be proven in the cases that the Customs Service so provides. Each transport unit shall transit covered by a merchandise declaration for transit or simplified document with the supporting documents being filed by the Customs Service, when it so provides.

Actions of the Customs Authority. Whenever the conditions established in the customs transit regime are met, the customs authorities shall control the condition of security devices and other control measures at the points where transit begins. They shall also monitor compliance with provisions relating to public safety, drug control, morality or public health, and others which they are obligated to enforce. The competent customs authority shall establish the time period for execution of the transit.

Commencement of Time Period. The calculation of the time period for transit shall commence from the registration of authorization for departure of the means of transport in the Customs Service's computer system, at the customs authority of departure, operated by the Customs Authority or the person responsible for the authorized facilities. Once the beginning of transit has been authorized, the carrier must remove the means of transport from the customs area immediately.

Time Periods and Routes. The Customs Service shall establish the time periods and establish the routes for the transit operation in the customs territory.

Interruption of Transit. In case of accidents or other circumstances constituting force majeure or an act of God, occurring during transit through the customs territory, the carrier must prevent the merchandise from circulating under unauthorized conditions, and therefore, in addition to the intervention of the competent authorities, shall be obliged to immediately notify the nearest Customs Authority, so that it may adopt the necessary measures for the safety of the cargo.

Inspection of Vehicle and Means of Transport. Upon receipt of the transit declaration or simplified document, the Customs Authority shall proceed to inspect the means of transport and verify whether the authorized security devices are in good condition and whether the transit time periods have been complied with. If no irregularities are found, the Customs Authority or the person responsible for the customs deposit or other authorized places shall acknowledge receipt of the means of transport. If there are any irregularities, the means of transport must remain at the destination customs authority installations, customs deposit, or other authorized places, without any handling. The destination customs authority shall order immediate inspection of the means of transport and shall take the appropriate administrative actions.

Actions of the Destination and Departure Customs Authorities. The destination customs authority shall communicate electronically or by other means to the departure customs authority the arrival of the means of transport in transit, as well as any irregularities presented upon receipt. In all cases, the investigation of transits not received, other irregularities, and the application of sanctions shall be the responsibility of the destination customs authority; for this purpose, the departure customs authority shall provide all necessary cooperation. In case of disagreement, the Customs Authority shall be empowered to request from the customs carrier and other auxiliaries who participated in the transit such information as may be necessary and shall adopt the appropriate administrative actions. The means of transport may not be used to perform a new transit or internal transfer until completion of arrival of the preceding operation or justification of the reason for non-compliance with the time period.

Cancellation of Regime. The customs transit regime shall be cancelled in the Customs Service's computer system operated by the Customs Authority or the person responsible for the authorized facilities, with the complete delivery and receipt of the merchandise at the destination customs authority installations, the customs deposit, or other places authorized for that purpose, as applicable.

Supplementary Application. Regarding matters not foreseen in this Section, the provisions concerning international customs transit established in the Regulation on the Regime of International Land Customs Transit, Declaration Form and Instructions shall be applied, to the extent applicable. SECTION III OF INTERNATIONAL LAND CUSTOMS TRANSIT

International Land Customs Transit. International land customs transit shall be governed by the provisions of the Regulation on the Regime of International Land Customs Transit, Declaration Form and Instructions. CHAPTER V MULTIMODAL TRANSPORT

Multimodal Transport. Multimodal transport is understood as the carriage of merchandise by at least two different modes of transport, pursuant to a single multimodal transport contract, from a place where the multimodal transport operator takes the merchandise into its custody and responsibility, to another designated place for its delivery, in which at least one border is crossed.

Multimodal Transport Operator. The multimodal transport operator is the person who enters into a multimodal transport contract and assumes before the shipper the responsibility of the carrier for its full execution, and may coincide with the multimodal transport operator.

Proof of Transport Contract. The document that proves the existence of a multimodal transport contract may be obtained by the Customs Service, upon its request, by means of electronic data transmission.

Responsibility. The operator of the multimodal transport contract, without prejudice to its responsibility before the shipper and consignee, is directly and personally responsible to the Customs Service for the transport of the merchandise covered by the contract. The operator is directly responsible for the civil and administrative consequences arising from the actions of its employees and, jointly and severally, is responsible for the actions of subcontractors, when such actions result in fiscal damage. The operator assumes responsibility from the time it takes charge of the merchandise until its delivery to the consignee. Once the merchandise has been delivered at the authorized place, the consignee is obligated to comply with the duties and tax obligations established in the Code and this Regulation. CHAPTER VI TRANSIT BY SEA OR AIR ROUTE SECTION I TRANSIT BY SEA ROUTE

Declaration and Guarantee. When the customs services of the Member States establish the application of maritime transit from one port to another of the Member States, the same shall be declared by the carrier and may be subject to the rendering of a guarantee for the applicable taxes, which shall be determined by the superior authority of the Customs Service.

Simplified Procedure. When the application of maritime transit from a port of the Member States is mandatory, the customs services, at the request of the interested shipping companies, may authorize transit through the use of the cargo manifest as a declaration or maritime transit document. Upon receipt of the request, the superior authority of the Customs Service of the Member State in which the shipping company is established shall notify said request to the other customs services of the Member States in which the planned ports of departure and destination are located. The superior authority of the Customs Service receiving the request, within thirty days from the date of receipt of the response from the notified customs services, if there is no objection, shall grant the authorization to the shipping company that requested it. The authorization shall be valid in all Member States notified and that have manifested their acceptance. When authorization is not granted, the procedure for international transit of merchandise established in the Regulation on the Regime of International Land Customs Transit, Declaration Form and Instructions shall be applied. To the extent applicable, the provisions established in the simplified procedure for air transit established in Article 421 of this Regulation shall be applicable to maritime transit.

Authorization for simplified procedure. The authorization referred to in the preceding Article shall be granted to shipping companies that comply with the following conditions:

• a)

  That they allow customs authorities to supervise their activities;

• b)

  That they have not been sanctioned with suspension of customs activity during the last year, counted from the date of the request;

• c)

  That they use manifests that can be easily audited by customs authorities; and d) That the manifests can be submitted to customs authorities by electronic means before the departure of the vessels to which they correspond.

Responsibility. The shipping companies that transport merchandise covered by the manifests referred to in the preceding Article shall be the direct responsible parties for the operations executed in maritime transit.

Cancellation of manifest. The manifests used in maritime transit must be submitted by electronic transmission for cancellation to the customs authorities of the port of destination, who shall retain a copy for purposes of subjecting the merchandise to customs control or surveillance mechanisms. Notwithstanding the foregoing, the customs authorities of the port of destination shall transmit monthly to the customs authorities of the port of departure a list of the manifests submitted in the preceding month, prepared by the shipping companies or their representatives.

List of manifests. The list of manifests shall contain, at a minimum, the following information:

• a)

  Reference number of the manifest;

• b)

  Name of the shipping company that transported the merchandise; and c) Date of maritime transport. SECTION II AIR TRANSIT

Air transit. When the customs services of the Member States establish the application of air transit, it shall be regulated in accordance with this Section. The manifests must bear the date and signature of the responsible party of the airline company that identifies them as transit declarations and that specify the merchandise to which they refer, which once completed and signed shall be considered authorized for the initiation of air transit.

Simplified procedure. When the application of air transit is mandatory, the simplified procedure established in this Section shall be used, for which the respective authorization shall be requested, which shall be processed in accordance with what is established in Article 408 of this Regulation.

Responsibility. The airline company that carries out the transport of merchandise covered by the respective manifest shall be the primary responsible party for the operations executed in air transit.

Advance transmission. The airline company that transports the merchandise shall transmit in advance by electronic means to the customs authorities of the airport of destination the respective manifest.

Submission of manifest. The airline company shall submit to the customs authorities of the airport of destination for control a copy of the manifest or manifests of the cargo it carries and that are to be unloaded therein. Likewise, said authorities may require that all air waybills relating to the shipments listed in the manifests be submitted to them.

List. The customs authorities of the airport of destination shall transmit monthly to the customs authorities of each airport of departure a list prepared by the airline companies of the manifests that have been submitted to them during the course of the preceding month. Said list shall contain, at a minimum, the following information:

• a)

  Reference number of each manifest;

• b)

  Name of the airline company that transported the merchandise;

• c)

  Flight number; and d) Date of flight.

Irregularities. In the event that the existence of irregularities is verified in the information contained in the manifests listed in the list, the Customs Authority of the airport of destination shall inform the Customs Authority of the airport of departure thereof, making reference to the manifests relating to the merchandise that have given rise to said findings.

Conditions. The procedure referred to in Article 414 of this Regulation shall only be applied to airline companies that meet the following conditions:

• a)

  That they carry out a significant number of flights between the Member States;

• b)

  That they send and receive merchandise frequently;

• c)

  That their manual and computer records allow customs authorities to control their operations both at the airport of departure and at the airport of destination;

• d)

  That they have not been sanctioned with suspension of customs activity during the last year, counted from the date of the request;

• e)

  That they make all their records available to the customs authorities; and f) That they commit before the customs authorities to comply with all their obligations and to cooperate in resolving all possible infractions and irregularities.

Procedure. The procedure in air traffic shall consist of the following:

• a)

  The airline company shall retain the documentation that justifies all shipments made in its commercial records;

• b)

  The manifest of the airport of departure transmitted by electronic transmission shall constitute the manifest of the airport of destination;

• c)

  The airline company must indicate the character of the simplified transit document corresponding to each shipment in the manifest;

• d)

  Transit between the Member States shall be considered concluded when the customs authorities have the manifest transmitted through a data exchange to the airport of destination and when the merchandise has been presented to them; and e) The customs authorities of the airport of departure and of destination may conduct inspections by means of audits, based on an analysis of the possible risks observed and, if necessary, cross information from the manifests sent by data exchange for verification. The infractions detected in connection with air transit shall be resolved in accordance with the legislation applicable to the Member States.

Substitution of procedure. The superior authorities of the customs services, at the request of the interested airline companies, may exempt them from the use of the manifest and its substitution by other procedures that promote the use of data exchange techniques by the airline companies in question. CHAPTER VII TEMPORARY IMPORTATION WITH REEXPORTATION IN THE SAME STATE SECTION I OF TEMPORARY IMPORTATION WITH REEXPORTATION IN THE SAME STATE

Declaration and supporting documents. The declaration for the regime of temporary importation with reexportation in the same state shall contain the data referred to in Article 320 of this Regulation and shall be supported by the documents referred to in subparagraphs a), b) and e) of Article 321 thereof. The application of this regime shall be subject to compliance with non-tax customs obligations upon its entry into the customs territory. When the commercial invoice is not available for the type of merchandise to be temporarily imported, the Customs Authority may authorize substituting this requirement with a list of the merchandise to be temporarily imported, which must contain the detail of quantity, description, and commercial value, without prejudice to the Customs Service establishing the customs value of the merchandise prior to authorization.

Identification. The Customs Service may authorize temporary importation when it is possible to identify the merchandise through marks, numbers, seals, measurements, or other special characteristics. However, if the merchandise cannot be fully identified, the Customs Authority shall order the declarant to adopt the measures it deems necessary to ensure its identification and control of its use.

Merchandise that may be subject to temporary importation. The following categories of merchandise may be temporarily imported:

• a)

  TOURISM: Vehicles entering the customs territory for tourism purposes.

• b)

  EVENTS: Merchandise to be exhibited at fairs, exhibitions, conventions, or international congresses.

• c)

  RECREATIONAL AND SPORTS: Equipment, vehicles, animals, and other property belonging to circuses or similar public spectacles.

• d)

  PROFESSIONAL EQUIPMENT AND MATERIAL: Press, broadcasting, and television equipment and material; cinematographic equipment and material; and equipment and material necessary for the practice of art, craft, profession, and occupation of a person.

• e)

  HUMANITARIAN AID: Merchandise to address situations arising from disasters or natural phenomena, including medical-surgical and laboratory equipment and material, for non-profit activities.

• f)

  EDUCATIONAL, RELIGIOUS AND CULTURAL: Merchandise used to be exhibited and to support activities for the strengthening and dissemination of arts, and those qualified as educational, religious, and cultural by the competent authority.

• g)

  SCIENTIFIC: Merchandise that serves as technological support or complement to scientific research, authorized by the competent authority, including personal implements of scientists.

• h)

  EXECUTION OF PUBLIC WORKS: Machines, equipment, apparatus, tools, and instruments that will be used in the execution of public works or provision of public services that are introduced directly by contractors, covered by special laws or administrative contracts.

• i)

  STATE: Merchandise that the State temporarily imports for the fulfillment of its purposes.

• j)

  CONTAINERS AND TRANSPORT ELEMENTS: Special material, reusable transport elements or containers that serve for the handling and protection of merchandise.

• k)

  UNITS AND MEANS OF TRANSPORT AND SPARE PARTS FOR THEIR REPAIR: Units and means of transport subject to any type of customs controls; and parts, pieces, and equipment destined for their repair, which shall be incorporated into the transport units. Replaced parts, pieces, and spare parts shall be destroyed under the control of the Customs Authority. The parts, pieces, and equipment referenced in this subsection shall be subject, regarding their temporary importation, to the requirements and conditions established by the Customs Service. Vehicles and transport units may not be used in internal transport in the customs territory, except as provided for transit by sea or air.

• l)

  COMMERCIAL: Those used for product demonstration and its characteristics, quality tests, exhibition, advertising, publicity, and others, provided they are not marketed.

• m)

  FILMS AND OTHER MATERIAL FOR THE REPRODUCTION OF SOUND AND IMAGE: Cinematographic films, magnetic tapes, magnetized films, and other sound and image media, for the purpose of being dubbed, dubbed, exhibited, or reproduced, provided they are authorized by the copyright holder.

• n)

  AIRCRAFT LEASED FOR A TERM OR WITH PURCHASE OPTION: Those destined for air services of companies that have an operation certificate or provisional registration granted by the aeronautical authority of the State Party. o) Those authorized by specific regulations, international agreements, or by the Customs Service. When it comes to samples and sample cases without commercial purposes or that will not be subject to sale, temporarily imported in reasonable quantities in accordance with the nature of the merchandise, arriving by any means together with the business traveler, temporary importation may be authorized by the competent Customs Authority. For this purpose, the merchandise shall be described, quantified, and valued, and the Customs Authority shall issue ex officio the simplified merchandise declaration, holding the traveler responsible for the return of the same or for the payment of those that, if applicable, do not leave the territory of the State Parties. For the purposes of the preceding paragraph, samples or sample cases shall be understood as, in addition to merchandise, suitcases, trunks, or similar containers that contain them and that by themselves or by their presentation cannot be subject to marketing.

Guarantee. For the categories indicated in subsections l) and m) of the previous Article and for samples and sample cases without commercial purposes, the Customs Service shall require a guarantee to be provided, which may be of a global nature, to respond for the amount of all duties eventually applicable according to the terms and conditions established in Article 437 of this Regulation. For the categories indicated in subsections a), d), e), f), g), and i), the Customs Service shall not require any guarantee. For the other categories not indicated in this Article, the Customs Service shall determine the cases in which it is necessary to provide a guarantee, which may be of a global nature, when required by the nature of the operation. When a guarantee has been provided, it shall be enforced if the regime is not canceled within the established deadline or the purposes that originated its authorization are altered, without prejudice to other applicable actions.

Term. The permanence of merchandise under the regime of temporary importation with re-exportation in the same state shall be for a period of up to six months counted from the acceptance of the declaration, without prejudice to each State Party, according to the nature and specific purpose of the merchandise temporarily imported, establishing special terms. When it comes to temporary importation of containers, platforms, and chassis, the term for their permanence within the customs territory shall be three months, counted from their entry. Temporary importations contemplated in international agreements or special laws shall be governed by what is provided therein.

Prohibition of transfer. The ownership of merchandise destined for the regime of temporary importation with re-exportation in the same state may not be the object of transfer or alienation by any title, while they are under such regime.

Events. For the purposes of subsection b) of Article 425 of this Regulation, events shall be understood as, among others, the following:

• a)

  Exhibitions and fairs of commerce, industry, agriculture, livestock, and craftsmanship;

• b)

  Exhibitions organized mainly for a philanthropic purpose;

• c)

  Exhibitions organized for the purpose of promoting science, technology, art, education, culture, sports, religion, and tourism; and d) International conventions or congresses. Fairs or exhibitions are understood as private or public demonstrations or exhibitions that are organized and whose purpose is the promotion of their products or services; and international conventions or congresses are understood as conferences, symposia, meetings, and similar events, whose purpose is to bring together on pre-established dates a certain number of persons.

Professional equipment and material. For the purposes of subsection d) of

of this Regulation, the following may enter as professional equipment and material, among others:

• a)

  Press, broadcasting, and television equipment and material necessary for representatives of the press, broadcasting, or television who enter the customs territory for the purpose of conducting reports, recordings, or broadcasting programs;

• b)

  Cinematographic equipment and material necessary to make films; and c) Equipment and material necessary for the practice of art, craft, profession, and occupation of a person residing outside the customs territory to perform a determined job. Temporary importation with re-exportation in the same state of professional equipment and material shall be authorized provided it is for the exclusive use of the beneficiary of the regime and under his responsibility. When the equipment and materials indicated in this Article constitute traveler's baggage, these shall follow their own regime.

Execution of public works. Temporary importations contemplated in administrative contracts executed with the State, as established in subsection h) of Article 425 of this Regulation, shall be governed by what is provided therein, with respect to the term and guarantee.

Educational and scientific equipment and material. For the purposes of subsections f) and g) of Article 425 of this Regulation, educational material and scientific equipment shall be understood as any equipment and material destined for teaching, professional training, research, scientific dissemination, or any other related activity. Its importation shall be authorized, provided they are imported by centers or institutions public or those authorized by the State, under the control of the competent authority and intended for exclusive use of the beneficiary of the regime and under his responsibility. The definitive importation of educational and scientific material that is used in educational tasks and that serves as supporting documentation of the knowledge transmitted during the learning process may be authorized.

Containers and transport elements. For the purposes of subsection j) of

of this Regulation, containers shall be understood as the receptacles intended to be reused in the same state in which they were temporarily imported. The transport elements admitted in this category are all those that are reusable and imported by the beneficiary for his exclusive use, such as wrappings, packaging, pallets, and other protective devices of merchandise that prevent possible damage during the handling and transportation thereof. In both cases, containers and transport elements may not be used in internal traffic, except for the export of merchandise.

Cancellation of the regime. The temporary importation regime shall be canceled for the following causes:

• a)

  When the merchandise is re-exported within the established term;

• b)

  When the merchandise is destined for the regime of definitive importation, or another regime, with prior authorization of the Customs Service, in both cases within the established term;

• c)

  By total destruction of the merchandise with authorization of the Customs Service, or by fortuitous event or force majeure, duly proven to its satisfaction;

• d)

  When voluntary abandonment of the merchandise in favor of the State occurs; and e) Others that the Customs Service establishes.

Authorization and dispatch procedure. When it comes to temporary importations with re-exportation in the same state, prior authorization must be requested from the Customs Service, where the interested party assumes responsibility in case of non-compliance with the obligations established by the regime. Said request shall contain the requirements and shall be attached to the documentation required by the Customs Service to apply for the temporary importation category. The Customs Service shall issue the corresponding resolution. If favorable, it shall indicate the term for its re-exportation, which may not exceed that established in this Regulation, according to the category that corresponds, and any other condition it deems appropriate. Once authorization is obtained, the declarant shall transmit electronically the merchandise declaration, which shall be supported in accordance with what is established in

of this Regulation. Once the merchandise declaration is accepted, dispatch shall continue according to what is established in

and other applicable provisions of this Regulation.

Re-exportation of merchandise imported temporarily. The declaration for the re-exportation of merchandise imported temporarily shall be transmitted in electronic form, prior to the expiration of the deadline and in compliance with the requirements and formalities established in Article 537 of this Regulation. The re-exportation of merchandise entered under this procedure shall invariably be subject to physical-documentary review.

Type of guarantee. The guarantee for temporary imports with re-exportation in the same state shall be governed by the provisions of Article 52 of the Code and, among others, the following specific regulations:

• a)

  Be constituted in favor of the Customs Service or collecting entity;

• b)

  Be constituted for the entirety of the customs tax obligation, in the terms of Article 53 of the Code;

• c)

  Be issued for the term indicated in the authorization resolution of the Customs Service; and d) Be constituted with special and specific clause regarding the guaranteed obligations, the amount and circumstances of the guarantee and express termination condition to enforce it, if the taxpayer has not complied with the conditions established in the resolution. If there is a refusal to pay, the Customs Service shall initiate administrative or judicial actions in accordance with applicable legislation.

Procedure for temporary entry of merchandise under the category of professional material. When it comes to equipment and material for press, broadcasting and television necessary for representatives of these media outlets who enter the customs territory for the purpose of conducting reports, recordings or program broadcasts, the Customs Service is authorized to permit their temporary internment, provided that a request is submitted in which the identification data of said media outlets or the company they represent are demonstrated, with identification of the equipment or professional material that will be entered into the customs territory. The Customs Authority shall proceed to assign an authorization number, and shall determine the customs tax obligation of the merchandise that is imported temporarily, establishing whether it coincides with that described in the request, allowing in its case its entry and taking all necessary control measures to guarantee the subsequent return of the merchandise. When it comes to equipment and material necessary for the exercise of art, trade, profession and occupation of a person resident outside the customs territory to perform a specific task, the customs administration is authorized to permit its temporary entry provided that a request is submitted in which the equipment and material involved are identified, and after merchandise verification is performed, the operation shall be authorized. In these cases, the services of a customs agent or special customs representative shall not be required, nor the use of a merchandise declaration, but it shall be an indispensable requirement that the professional equipment and material be re-exported preferably through the same customs office through which it entered, after physical verification.

Aircraft leased on a fixed-term basis or with option to purchase. For purposes of subsection n) of Article 425 of this Regulation, the term shall be determined by that established in the contract duly approved by the aeronautical authority of the State Party. SECTION II TEMPORARY IMPORT OF VEHICLES FOR TOURISM

Authorized subjects. The temporary importation of land, air and sea motor vehicles for non-profit purposes shall be authorized to tourists from third countries. For these vehicles to be able to circulate in the national territory, it is essential to visibly carry such authorization. When the vehicle enters under a cargo manifest, the beneficiary of the temporary import regime must coincide with the holder of the bill of lading, so the endorsement shall not be authorized so that another person may benefit from the temporary import regime, unless such endorsement is made in favor of another natural person who meets the same conditions to benefit from temporary importation in this category.

Authorized vehicles. The temporary importation of one vehicle of each of the following categories may be authorized:

• a)

  Motor vehicle for the transport of persons, which is not intended for paid transport of persons, and may have a trailer or semi-trailer for dwelling or camping, intended exclusively for coupling to other vehicles by means of a special device, even automatic;

• b)

  Vessel intended for recreation navigation, as indicated in the navigability certificate or its registry;

• c)

  Aircraft of private non-profit use, as indicated in the airworthiness certificate or in its registry; and d) Recreational equipment such as bicycles, tricycles, quadricycles, bicycles with motor, motorcycles, motorboats and other similar items for recreation. The interested party shall have the right to temporarily import up to a maximum of three classes indicated in this subsection.

Temporary stay of land, aquatic and air motor vehicle. The Customs Authority shall authorize the temporary stay of the land, air or aquatic vehicle for exclusive use of the tourist, which may be for the term granted by the corresponding migration entity, in its capacity as a tourist, unless the Customs Service provides for a different term. The deposit of the vehicle, vessels, aircraft and other recreational equipment under customs control, as well as the temporary departure of the same, driven by the beneficiary to another country, shall suspend the term granted for purposes of permit expiration. The maximum term of vehicle deposit shall be one year, counted from its entry into the customs warehouse; upon expiration, it shall be considered abandoned. In the case of temporary departure, the suspension of the term shall be three months, counted from the actual departure from the customs territory. The deposit of vessels and aircraft under the control of the Customs Authority shall be authorized in duly constituted companies that provide surveillance and custody services, and have the respective authorization from the competent authority. For such purposes, the responsibility for custody and preservation shall fall on the authorized company. A new authorization for temporary importation of a vehicle may not be granted until three months have elapsed from its departure from the customs territory unless the suspension of the term or its deposit under customs control has occurred.

Defect or damage to vehicle. When due to suffering a defect or damage the vehicle cannot leave the customs territory, the interested party shall request before the Customs Service, prior to the expiration of the granted term, permission for repair for the time the vehicle requires to be in condition to leave the customs territory, after consideration of the pertinent evidence. Once the permission is authorized, the data of the authorization shall be registered in the information system of the Customs Service.

Basic information. The temporary importation for land, air and sea motor vehicles shall be requested by the interested party and shall be processed ex officio by the Customs Authority, and shall contain at least the following information:

• a)

  Data of the applicant: name of the permit holder and of other persons who, in addition to the holder, are authorized by the customs office to drive the vehicle in the customs territory, number and country of issuance of the passport and temporary address in the State Party;

• b)

  Description of the vehicle: i. Land motor vehicle: brand, type, year, model, engine number, chassis number, serial number or vehicle identification number (VIN) as applicable and license plate number of the country in which it is registered. If carrying a trailer, the characteristics of this must be noted, as well as the quantities and characteristics of the recreational equipment it contains; ii. Vessel: type, size, engine number, number of decks, registry number and country of origin. If carrying boats, the quantity and characteristics of these must be noted; iii. Aircraft: type, series, model, name of manufacturer, international registration number and country of origin. Furthermore, it must declare, if applicable, the quantities and characteristics of recreational equipment;

• c)

  Authorized term and expiration deadline; and d) Other data: permit number and date, customs office where it is issued, observations, name and signature of the official who authorizes it and name and signature of the beneficiary.

Other persons authorized to drive the vehicle. The customs office may authorize, upon request of the permit holder, in addition to him, up to two of the travel companions who have the right to temporary importation under the conditions of this Regulation, to be able to drive the vehicle in the customs territory. The names and other data of the authorized persons must be recorded in the permit, in accordance with what is established in subsection a) of the previous Article and shall be responsible before the customs and national authorities for the obligations and duties established in the Code, this Regulation and other related provisions.

Requirements for permit authorization. For the authorization of the permit, the interested party must comply before the customs office of vehicle arrival with the following requirements:

• a)

  Present original and copy of the property title issued under the regulations of the country or State of origin. If the interested party is not the owner, in addition to the original of the property title, an original or certified copy of the owner's authorization issued abroad must be presented, which shows the owner's consent for the interested party to enter the customs territory with their vehicle or, failing that, a notarial sworn statement in that sense, made by the owner must be presented;

• b)

  Present original and copy of the passport demonstrating migration status; and c) Present original and copy of the airworthiness or navigability certificate and registration or registry certificate in the case of aircraft and vessels. Additionally, the State Parties may request compliance with other requirements, such as insurance against accidents and damages to third parties.

General obligations of the beneficiary. The obligations of the beneficiary are:

• a)

  Carry in the vehicle the original permit for the time it circulates in the customs territory;

• b)

  Personally drive the vehicle in question, with the exceptions established in Article 445 of this Regulation;

• c)

  Deliver the original permit to the customs office if the beneficiary requests permanent importation, deposit under customs control or departure from the customs territory, within the authorized term; otherwise, the corresponding sanctions shall be applied;

• d)

  Report immediately to the customs office the loss or destruction of the permit;

• e)

  Previously notify the customs office of the future sale or other act of disposal of the vehicle, with indication of whether it will be subject to re-exportation, permanent importation or enjoyment of the remaining term, provided that in the latter case, the acquirer meets the required conditions, in which case the issuance of a new permit for the remaining term must be managed. When the sale or disposal is made to someone who cannot make use of this regime, it must previously be placed in customs warehouse or under the control of the corresponding customs office, in order to be subjected to the corresponding regime; and f) Report to the competent authority and notify the customs office immediately of the theft, larceny or accident of the vehicle.

Re-exportation. For vehicles entered in the tourism category that are not re-exported upon expiration of the term, prior to their assignment to the re-exportation regime or permanent importation, the fine established in the legislation of each State Party shall be paid. In case the tourist is not willing to re-export or nationalize the vehicle, this shall cause abandonment. SECTION III OTHER CASES OF TEMPORARY VEHICLE IMPORTATION

Temporary importation of collective transport vessels or aircraft. Vessels or aircraft dedicated to collective transport may remain under the temporary importation regime for a period of up to six months, which may be extended provided that it does not exceed one year.

Temporary importation of land motor vehicles by international organizations and diplomatic officials. Officials of international organizations in whose constitutive agreements this benefit is established or of the foreign diplomatic corps accredited in the State Party may temporarily import a land motor vehicle for the term established therein or, failing that, for consecutive periods of six months until completing a term equal to their stay in the State Party as a consequence of the mission for which they were designated. In the case of motor vehicles temporarily imported by diplomatic corps officials, they shall be authorized on the basis of the principles of reciprocity established by the Vienna Convention, which regulates diplomatic relations between States.

Temporary importation of land motor vehicles by foreign students conducting postgraduate studies in the State Party. Foreign students conducting postgraduate studies in the State Party who demonstrate such status through certification issued by the corresponding higher education institution may enjoy the benefit of temporary importation of a land motor vehicle, for consecutive periods of six months until completing the reasonable time their studies last.

Obligations of beneficiaries. In the cases referred to in the two preceding Articles, the beneficiary shall have the obligation to renew the temporary importation permit every six months, before its date of expiration, otherwise the Customs Authority shall cancel the regime, with the corresponding legal consequences. Except as provided in Article 442 of this Regulation, the other provisions of this Section shall apply.

Temporary importation of vehicles by national citizens of the State Parties. The State Parties may provide that their national citizens with legal residence in a bordering country and whose vehicle is registered in the same, may temporarily import for tourism purposes, one vehicle for a maximum term of one month, upon compliance with the requirements and conditions established by the Customs Service.

Beneficiaries of the Agreement. In accordance with what is established in the Regional Agreement for the Temporary Importation of Road Vehicles, the beneficiaries of this Agreement may choose the regime that most favors them.

Bilateral or multilateral agreements. The provisions of this Section establish the minimum customs facilities for the temporary importation of tourist vehicles and do not oppose the application of greater facilities that certain countries may have granted or may grant themselves under the framework of bilateral agreements or through bilateral or multilateral agreements. CHAPTER VIII PROVISIONS ON BOARD

Provisions on board. Provisions on board are goods temporarily entered and destined for the maintenance of crew members, to be consumed, purchased or given as gifts to passengers by the airline or shipping company; furthermore, those used in the operation, functioning and preservation of international passenger transport vehicles, ships, aircraft and trains, with the exclusion of parts, spare parts and equipment of the vehicle or transport unit.

Legal condition of goods considered provisions on board. Goods considered provisions on board shall enjoy a suspension of import duties, under the condition that they remain in the vehicle that introduced them to the customs territory or are deposited under customs control, in warehouses or premises authorized by the Customs Authority exclusively for the deposit of such class of goods, destined for the provisioning of international transport vehicles during the time they remain in the customs territory. Provisions on board may also be destined for the definitive importation regime, transshipped or declared for another regime in accordance with the procedures established for those regimes.

Responsibility. Companies that maintain goods considered as provisions on board in warehouses or premises enabled for that purpose shall comply with the following requirements and obligations:

• a)

  Comply with the procedures and control standards issued by the Customs Service;

• b)

  Keep records of all their actions and operations before the Customs Service, in the form and conditions that it establishes. The records shall be available to the Customs Authority when it requests them in fulfillment of its control and supervision powers;

• c)

  Provide information on their management, in the form and by the means established by the Customs Service;

• d)

  Integrate into the computer systems authorized by the Customs Service;

• e)

  Register in the company records the goods received in its premises, according to the procedures and means established by the Customs Service;

• f)

  Maintain and send records of goods admitted, deposited, withdrawn or subject to other movements to the Customs Authority, in accordance with the formats and conditions established by the Customs Service;

• g)

  Keep available to the Customs Authority the means of control of entry, stay and exit of goods; and h) Post a guarantee that backs the possible payment of duties for non-compliance, loss, damage, harm not caused by force majeure or act of God or change of purpose for which the goods were entered, without prejudice to the criminal or administrative actions that correspond.

Enabling of warehouses or premises. Companies responsible for vehicles that habitually enter goods to the customs territory as provisions on board may maintain warehouses or premises destined for the deposit of such goods, for which they must be at all times under customs control, prior enabling by the Customs Service.

Declaration of goods for provisions on board that are transferred from the vehicle to enabled warehouses or premises. Goods considered provisions on board that enter in international passenger transport vehicles, ships, aircraft and trains, may be transferred to warehouses or premises authorized by the Customs Service, prior to acceptance of the declaration of goods presented to the corresponding customs authority by the representative of the company responsible for the vehicle.

Data that the declaration of goods for transfer must contain. The declaration of goods referred to in the preceding Article shall contain the necessary information regarding the following aspects:

• a)

  Identification of the company responsible for the vehicle and of the representative who presents the declaration of goods;

• b)

  Data on the country of origin of the goods, the country of provenance, the foreign port of shipment or loading of the goods and the transport used;

• c)

  Precise description of the goods, including commercial name and identifying characteristics, number of packages and identification marks, gross and net weights, tariff classification and value of the goods;

• d)

  Location and date of entry of the vehicle that transports the goods; and e) Identification of the documents that accompany the declaration of goods, such as: commercial invoice, transport document and non-tariff requirements, when required.

Acceptance of the declaration of goods. Once the declaration of goods is accepted and if immediate verification does not apply, authorization shall be granted for the removal of the goods for transfer to the authorized warehouses or premises. Physical inspection may be conducted in the vehicle itself or in the authorized warehouses or premises.

Term. The maximum term of permanence of goods in the customs territory shall be six months counted from their entry. After this term expires without having carried out their reexportation or change of regime, they shall cause abandonment in favor of the Treasury.

Amount of the guarantee. The guarantee, when required by the Customs Service, shall be equal to the average monthly amount of the value of goods that would have been deposited in the authorized warehouses or premises during the previous calendar year. If the company responsible for the warehouse or premises shall not have functioned as such during the last six months of the previous calendar year, the guarantee shall be calculated based on the average monthly value projected for the year in which the guarantee will be in effect. The guarantee shall be governed by the provisions of Article 52 of the Code and shall cover the period between January first and December thirty-first, renewable for equal periods.

Ship and Aircraft Provisions. Provisions on board brought by maritime and air vessels to be consumed or gifted to passengers and crew members who remain in the means of transport shall not be subject to duties. The captain or responsible party shall report to the Customs Authority a summary of the provisions on board for the purpose of eventual customs control. Any provision that is unloaded shall be subject to the clearance procedures provided for in this Regulation. CHAPTER IX ON TEMPORARY ADMISSION FOR ACTIVE PROCESSING

Definitions. For the purposes of this Chapter, the following definitions shall apply:

• a)

  Active processing operations: i. The manufacture of goods, including their assembly, assembly or adaptation to other goods. ii. The transformation of goods. iii. The repair of goods, including their restoration and putting into working order. iv. The use of certain goods not found in compensating products, but which permit or facilitate the obtaining of these products even though they disappear totally or partially during their use.

• b)

  Compensating products: The products resulting from processing operations.

• c)

  Production coefficient: The quantity or percentage of compensating products obtained in the processing of a determined quantity of imported goods.

• d)

  Waste: Effects that are consumed or lost in the development of processing processes and whose integration into the product cannot be verified.

• e)

  Scrap: Residue of goods resulting after the processing to which they are subjected.

Term of the Regime. The period of permanence of goods introduced for their processing under the temporary admission regime for active processing shall be up to twelve months non-extendable, counted from the day of acceptance of the corresponding goods declaration. For the application of this regime, the establishment of a guarantee shall be required, unless special laws do not require such requirement.

Declaration. The declaration for the temporary admission regime for active processing shall contain the information established by Article 320 of this Regulation.

Documents Supporting the Declaration. The declaration shall be supported by the documents mentioned in Article 321 of this Regulation, with the exception of those referred to in subsections c) and d) of said Article.

Authorization. This regime may be benefited by any person, duly authorized by the competent authority, who introduces goods into the customs territory to be destined for transformation, processing, repair or other legally authorized processes. To guarantee the operations executed within the regime and eventually the corresponding duties, a guarantee shall be required in one of the forms established in Article 52 of the Code.

Deadline to Commence Operations. Persons authorized to carry out operations within this regime must commence them within a period of six months, counted from the notification of the resolution that authorizes them the regime. This deadline may be extended by the competent authority for another six months, upon justified request of the interested party. Once the deadline expires without commencing operations, the authorization shall be deemed cancelled.

Controls. Without prejudice to other powers, the Customs Service shall have control over the use and destination of goods covered by this regime. In the exercise of this control, the Customs Service may:

• a)

  Review or audit the production coefficient or the manner of establishing it and the production processes and other operations covered by the regime;

• b)

  Control the transfer of goods, their waste and scrap, by-products or defective compensating products;

• c)

  Authorize and control the destruction of raw materials, inputs, scrap or defective compensating products;

• d)

  Audit the delivery of goods donated by beneficiaries of the regime to public charitable entities;

• e)

  Verify the cancellation of the regime; and f) Others that the Customs Service deems pertinent.

Obligations. The beneficiaries of the regime shall have, before the Customs Service, among others, the following obligations:

• a)

  Have the necessary equipment to effect the electronic transmission of records, consultations and other information required by the Customs Service;

• b)

  Establish communication links to facilitate the transmission of declarations and other information related to the operations they carry out within the regime;

• c)

  Have sufficient means to ensure the custody and preservation of temporarily admitted goods;

• d)

  Inform the Customs Authority of damaged, lost or destroyed goods and other irregularities occurring during the period of permanence;

• e)

  Respond directly to the Customs Service for the temporarily admitted goods in its facilities from the moment of their reception and for the payment of customs tax obligations of damaged, lost or destroyed goods, unless these circumstances were caused by act of God or force majeure;

• f)

  Provide the information referred to in Article 475 of this Regulation;

• g)

  Keep accounting records, control of their customs operations and inventory of goods subject to the regime in electronic media, in accordance with the requirements established by the Customs Service;

• h)

  Provide the information necessary to determine the goods required for the production or assembly of compensating products, as well as to determine the waste, by-products or residues resulting from the production process;

• i)

  Allow and facilitate the inspections and verifications carried out by the Customs Service;

• j)

  Provide any other relevant information that permits the audits or verifications necessary to be carried out by the Customs Service; and k) Provide the Customs Service with the physical facilities and equipment necessary for the work of officials who shall conduct controls on the operations executed by the beneficiaries of the regime.

Permitted Transfers. The following transfers shall be permitted:

• a)

  Between beneficiaries of the regime: Goods introduced under the temporary admission regime for active processing may be permanently transferred.

• b)

  Between beneficiaries of the regime and subcontractors: Any beneficiary of the regime may transfer to third parties subcontracted by it, temporarily imported goods, for the purpose that they produce products for re-export, being in this case said beneficiary responsible for the payment of the corresponding duties and taxes, if such goods are not re-exported from the customs territory within the period of permanence.

• c)

  Between beneficiaries of the regime and users of free trade zones: Goods may also be transferred between beneficiaries of the regime and companies located within free trade zones, upon compliance with the corresponding legal obligations. The transfers mentioned in the previous subsections shall be carried out using the formats and under the conditions that the Customs Service shall establish.

Duty to Supply Information. The beneficiaries of this regime shall supply, with the frequency required by the Customs Service, the information necessary to achieve effective control of the regime, especially that related to the re-export of goods, the proportion that it represents of those temporarily admitted, the waste and scrap that are not re-exported, the donations and destructions of goods, as well as the permanent imports to the customs territory. The information shall be supplied through the formats established by the Customs Service.

Responsibilities. The Customs Service shall demand payment of the debt and shall apply the sanctions or shall file the corresponding reports in the following cases:

• a)

  When, once the authorized deadline has expired, the beneficiary of the regime fails to prove to the satisfaction of the Customs Service that the goods or compensating products have been re-exported or destined for any of the other legally authorized treatments;

• b)

  When it is proven that the goods or compensating products were used for a purpose or destination different from the authorized; and c) When the goods or compensating products are damaged, destroyed or lost by causes attributable to the beneficiary.

Cancellation of the Regime. The temporary admission regime for active processing shall be cancelled for the following causes:

• a)

  When temporarily admitted goods are re-exported in any condition within the authorized deadline;

• b)

  When temporarily admitted goods are permanently transferred to other beneficiaries or persons authorized to operate the regime, under whose responsibility the same shall remain charged;

• c)

  When goods are destined, within the deadline, to other customs regimes or authorized legal treatments;

• d)

  When goods are deemed to be permanently imported by operation of law;

• e)

  When voluntary abandonment of the goods in favor of the State occurs; and f) When goods are destroyed by act of God, force majeure or with the authorization and under the control of the Customs Service. For the purposes of subsection c) of this Article, when goods that have been admitted to be subjected to a process of transformation, processing or repair change from temporary to permanent admission regime, the presentation of the same before customs for clearance shall not be required.

Treatment of Scrap. Scrap resulting from processing operations that are not totally deprived of commercial value shall be subjected to any other regime or legally permitted destination. In this case, goods shall be classified in accordance with how they are presented for clearance. Scrap from temporarily admitted goods shall not be considered permanently imported, provided that they are destroyed or recycled in the same production process and compliance is made with the control standards established by the Customs Service. The destruction of scrap generated in productive processes shall proceed upon prior authorization of the Customs Service. The request to obtain the related authorization shall contain the data relating to the company, its legal representative, the goods to be destroyed, the place and date of destruction. The Customs Service, depending on the type of scrap to be destroyed, shall request the opinion of the competent entities, so that they participate in the destruction act or give their consent to it. In the destruction act, the respective record shall be drawn up, whose certification shall serve the qualified company as a discharge in its current account. Likewise, in specific situations the Customs Authority, upon request of the interested party, may permit that scrap resulting from productive processes may be donated to charitable institutions or, in its case, be imported in the condition in which they are found, complying with the requirements and formalities inherent to the permanent import regime.

Reimportation. For the reimportation of goods submitted to the active processing regime in the customs territory and that were re-exported, upon their return to the customs territory by return from abroad, foreign raw materials and intermediate goods used for their production that were imported under the suspensive regime shall be subject to the payment of duties.

Returns. Finished products that have been exported or reexported once subjected to active improvement processes in the customs territory and that are returned to the same for repair may enter under the temporary admission regime for active improvement, prior to the constitution of the corresponding guarantee.

Special case of definitive importation. Goods admitted or temporarily imported that upon expiration of the period of stay, the beneficiary has not proven have been reexported or assigned to any of the other legally authorized treatments, shall be considered as definitively imported to the customs territory and consequently shall be subject to the corresponding taxes and the fulfillment of non-tax customs obligations.

Declaration. The entry of goods into the customs warehouse regime shall be made through the electronic transmission of the respective merchandise declaration that shall contain, as applicable, the information established in Article 320 of this Regulation.

Documents supporting the declaration. The declaration shall be supported, as applicable, with the documents indicated in Article 321 of this Regulation. Licenses, permits, certificates or other documents referring to compliance with non-tariff restrictions and regulations to which the goods are subject, and other authorizations, shall be required at the moment of entry into the customs territory or assignment to a regime other than customs warehouse, as provided by applicable legislation on the matter.

Consultation regarding intervention of customs official in unloading or receipt. In cases where the Customs Service does not have a customs delegation at the customs warehouse, the customs depositary shall consult with the corresponding customs authority, with the communication of the receipt of vehicles and transport units, whether the unloading of bundles shall be carried out with the intervention of a customs official. Once the consultation is made, the corresponding Customs Authority shall communicate to the depositary the conditions under which the unloading shall be carried out, in application of risk criteria.

Unloading with intervention of customs official. In cases where the Customs Service does not have a customs delegation at the customs warehouse, the designated official shall travel, within a maximum period of two hours counted from the respective communication, to the customs warehouse where the means of transport and the merchandise are located, in order to inspect the unloading. However, if the facilities of the auxiliary are located outside the perimeter of twenty-five kilometers from the facilities of the corresponding customs, the period shall be three hours. If the period indicated has elapsed and the official has not appeared at the place, the depositary shall proceed to carry out the unloading and shall make a record of such situation in the document of entry to its facilities. The corresponding Customs Authority shall ensure compliance with the established period and shall take the corresponding measures in order to establish the responsibility of the customs official and the auxiliary.

Unloading without intervention of customs official. When the unloading of bundles without the intervention of a customs official is appropriate, the depositary shall proceed to carry it out and shall make a record of such situation in the document of entry to the warehouse. The unloading must be completed at the latest within the next business day, counted from the date and time indicated for the beginning of the process.

Period for concluding the unloading of the transport unit. When a customs official has been designated to inspect the unloading and he has not appeared at the place, the unloading shall be completed within the next business day counted from the expiration of the time established in Article

of this Regulation. In cases where the intervention of an official is not required, the period shall run from the respective communication of the corresponding Customs Authority.

Receipt of bundles. Prior to the receipt of bundles, it shall be verified that the security device placed on the transport means does not have signs of violation. If the security device or the transport means have been violated, the corresponding legislation must be followed. The receipt of bundles shall be carried out based on the information contained in the merchandise declaration or in the respective document. The depositary and the customs carrier and the customs official when he intervenes, shall make a record of their actions and records in the computer system, in the merchandise declaration or in the respective document, including the hour and date of such act, which shall be considered for all legal purposes as the date of initiation of the customs warehouse regime. Without prejudice to the sanctions that may be applicable and when the Customs Service so provides, in the case of finding any discrepancy, the carrier, the consignee or his representative, as the case may be, shall be responsible for justifying it before the corresponding Customs Authority.

Unloading report. Once the unloading of merchandise from the transport unit is completed, the depositary shall locate it in its facilities and shall transmit by electronic means, within a maximum period of three business hours, the result of that operation to the corresponding customs authority. The report must contain at least the following information:

• a)

  Identification of the consignee;

• b)

  Number of the declaration or entry document;

• c)

  Number of the transport document;

• d)

  Quantity of bundles received and gross weight in kilograms or volume;

• e)

  Marks of the bundles if any;

• f)

  Description of the goods;

• g)

  Detail of damages or breakages;

• h)

  Detail of shortages or overages if any; and i) Date and time of entry to warehouse.

Discrepancies at the moment of arrival. If at the moment of receipt of the bundles discrepancies are found in the declared quantity with respect to the received, a record shall be drawn up in which mention is made of this circumstance and shall proceed in accordance with the provisions of Article 261 and other applicable provisions of this Regulation, unless there has been configured with respect to the overages a well-founded presumption of criminal infraction.

Communication of entry and exit of goods from the warehouse. The customs depositary shall register and communicate to the Customs Service the entry and exit of goods from the warehouse, in accordance with the procedures established for such purpose. The depositary or the customs delegate shall transmit in electronic form a report to the corresponding Customs Authority of the quantities, marks, damages, shortages or overages of the bundles and other information indicated in this Regulation, at the moment of entry of the merchandise to the customs warehouse.

Period of permanence of goods. The period of permanence of goods in customs warehouse shall be one year without extension, counted from the date of receipt of the merchandise by the depositary. Upon expiration of this period, the merchandise shall be considered in abandonment.

Withdrawal of goods from customs warehouse. For the withdrawal of goods from customs warehouses, it shall be necessary to have the authorization of the corresponding Customs Authority, in accordance with the provisions of literal e) of Article 115 of this Regulation. The withdrawal of the goods may be total or partial, in accordance with the regulations established in this Regulation for each customs regime or operation.

Cancellation of the regime. The customs warehouse regime shall be cancelled for the following causes:

• a)

  Assignment to another authorized customs regime, within the warehouse period;

• b)

  Total destruction of the merchandise with authorization from the Customs Service, or by fortuitous event or force majeure, duly proven to the satisfaction thereof; and c) Abandonment of the merchandise. In case of destruction of merchandise found in customs warehouse by authorization of the Customs Service, or by fortuitous event or force majeure duly proven to the satisfaction thereof, the legal representative of the warehouse shall give notice of such circumstance to the customs authority in whose territorial jurisdiction it is located, within twenty-four hours following the event. In this case, such merchandise shall not be subject to the payment of taxes. In the case of merchandise subject to abandonment, the warehouseman shall give notice to the corresponding Customs Authority for the initiation of auction proceedings in accordance with the provisions established in this Regulation.

Transfers of merchandise between customs warehouses. When transfers are made between customs warehousemen of merchandise that remain under the customs warehouse regime, authorization from the Customs Service shall be necessary. In any case, the period of permanence of the merchandise shall begin to run from the date on which the merchandise was entered into the first customs warehouse.

Official referral to a warehouse. For reasons of control or fiscal security, the Customs Authority may order ex officio the transfer of merchandise to a specific customs warehouse. For these purposes, the corresponding customs authority, in coordination with the customs warehousemen, shall establish a rotative and proportional distribution plan to the different customs warehouses, taking into consideration the type of warehouse and the characteristics of the merchandise, with the costs being borne by the owner of the merchandise or whoever demonstrates better right.

Limitations for storage of merchandise. For merchandise that at the time of arrival, or stored in customs warehouse, which by its nature are perishable or have the risk of causing damage to other merchandise deposited or to the facilities, the warehouseman, at the time of arrival or when such circumstance is verified, shall immediately give notice to the consignee and to the corresponding Customs Authority. From this moment, the Customs Authority shall grant a period of five days for the withdrawal thereof or its subsequent assignment. If the transfer is not made within such period, the merchandise shall be subject to abandonment and shall be transferred or destroyed at the cost of the consignee or warehouseman.

Damaged or destroyed merchandise. Damaged or destroyed merchandise that retains some economic value may be definitively imported in the state in which it is found, by means of payment of the corresponding taxes.

Service hours of the customs warehouse. The customs warehouseman shall provide services during the following hours: a) The service of reception of vehicles and transport units, twenty-four hours a day, 365 days a year; and b) The customs warehouse service, at a minimum, during the normal business hours of the corresponding customs authority. In the case of literal b) above, authorization must be requested for any extension of service hours. Exceptional extensions are not of a permanent nature, but rather are made for a particular operation and must be requested at least two hours before the end of business hours of the customs authority.

Permanence of merchandise in the transport unit. Exceptionally, the warehouseman may request from the Customs Authority authorization not to unload from the transport unit the merchandise entered into the customs warehouse that, by its characteristics, are difficult to move or store, in accordance with the guidelines that the Customs Service shall establish for such purpose. For the case referred to in the fourth paragraph of Article 234 of this Regulation, permission shall be granted not to unload merchandise dangerous to health and the environment.

Independence of the activity. The activities permitted within the customs warehouse, provided for in Article 116 of this Regulation, are independent of the proper and inherent activities of the customs warehouse, so that the customs and internal controls of the auxiliary, which are exercised over the merchandise, shall be kept separate.

Request for permitted activities. The request to carry out permitted activities within the customs warehouse shall be submitted by the consignee or his representative to the corresponding Customs Authority, by transmission in electronic form or other means that it may establish.

Verification of the process and exit. The Customs Authority shall perform the pertinent verifications regarding the process carried out and the destination of the merchandise. The shrinkage and waste of foreign merchandise resulting from the permitted activity to which they were subjected shall be reexported, destroyed, or definitively imported in accordance with the provisions of this Regulation.

Entry of merchandise in free circulation. Raw materials and products in free circulation, which are used in permitted activities within the customs warehouse, shall be reported upon entry, through the forms and conditions established by the Customs Service.

Procedures manual. The Customs Service shall establish and publish the mandatory procedures manual for the processing, operation, and control of the permitted activities to which merchandise shall be subject within the customs warehouse, in accordance with the provisions of Article 116 of this Regulation.

Declaration of merchandise. The declaration of merchandise for the free trade zone regime shall contain, as applicable, the information established in Article 320 of this Regulation.

Documents supporting the declaration. The declaration of merchandise shall be supported, as applicable, by the documents mentioned in Article 321 of this Regulation.

Control. The Customs Service or the entity designated by specific regulations shall exercise control over the use and destination of merchandise admitted to this regime. In the exercise of such control, it shall, among others:

• a)

  Oversee the perimeter and the access and exit routes of the zone;

• b)

  Review or audit the production coefficient or method of establishing it and the production processes of the operations covered by the regime;

• c)

  Control the entry and exit of persons, merchandise, and means of transport; and d) Control the transfer of merchandise, its shrinkage and waste, byproducts, or defective compensating products.

Obligations. The beneficiaries of the regime shall have before the Customs Service, among others, the following obligations:

• a)

  To have the necessary equipment to carry out electronic transmission of records, inquiries and other information required by the Customs Service;

• b)

  To have sufficient means that ensure the custody and preservation of merchandise admitted under this regime;

• c)

  To inform the Customs Authority of merchandise that is damaged, lost or destroyed and other irregularities that occur during its stay in the free trade zone;

• d)

  To respond directly to the Customs Service for merchandise received in its facilities from the moment of receipt and for payment of customs tax obligations for merchandise that is damaged, lost or destroyed, unless such circumstances were caused by act of God or force majeure;

• e)

  To maintain in electronic media the record of its customs operations, as well as the control of inventories of merchandise subject to the regime, in accordance with the requirements established by the Customs Service;

• f)

  To provide the information necessary to determine the merchandise required for the production or assembly of compensatory products, as well as to determine waste, by-products or refuse resulting from the production process;

• g)

  To permit and facilitate inspections and verifications carried out by the Customs Service; and h) To provide any other relevant information that permits the audits or verifications necessary to be carried out by the Customs Service.

Cancellation of the regime. The free trade zone regime shall be cancelled for the following reasons:

• a)

  When merchandise and compensatory products are sent to outside the customs territory;

• b)

  When merchandise and compensatory products are assigned to another authorized regime;

• c)

  Total destruction of merchandise with authorization of the Customs Service, or by act of God or force majeure duly proven to the satisfaction thereof; and d) When voluntary abandonment of merchandise in favor of the Public Treasury occurs.

Supplementary application. The provisions of the active improvement regime and the customs warehousing regime regulated in Articles 466, 472, 474, 475, 478, 488, 489, 490, 491, 493 and 499 of this Regulation shall be applicable to this regime, to the extent pertinent. CHAPTER XII TEMPORARY EXPORT WITH REIMPORTATION IN THE SAME STATE

Declaration of merchandise. The declaration of merchandise for the temporary export with reimportation in the same state regime shall contain, to the extent pertinent, the data of the declaration of merchandise for the definitive export regime.

Documents supporting the declaration of merchandise. The declaration of merchandise shall be supported by the documents indicated in the

of this Regulation, with the exception of the documents referred to in paragraphs a), c) and d) of said Article. In the event that at the time of export the transportation document is not available, the respective shipping order shall be accepted.

Verifications in clearance. During clearance the following verifications shall be carried out: a) That the declaration of merchandise has been transmitted and validated by the Customs Service for the purpose of its acceptance and the regime shall be authorized, remaining subject to immediate verification; and b) That the declaration of merchandise complies with the documentary requirements indicated in Article 513 of this Regulation. If the Customs Authority detects irregularities in the immediate verification, it shall proceed in accordance with this Regulation.

Period of permanence. The permanence of merchandise under the temporary export with reimportation in the same state regime shall be for a period of up to six months counted from the date of acceptance of the declaration of merchandise.

Reimportation. The declaration of merchandise for the reimportation of merchandise that has been exported under the temporary export with reimportation in the same state regime, carried out within the period of permanence outside the customs territory established for such regime, shall be supported by the documents indicated in paragraphs b) and e), when applicable, of Article 321 of this Regulation, and must attach a certified copy of the temporary export declaration of merchandise, or indicate its number. In this case the merchandise shall not incur payment of duties. The reimportation of temporarily exported merchandise may be carried out partially or totally and shall not require prior authorization, with the Customs Authority obligated to verify that it concerns the same merchandise that left the customs territory under the temporary export regime. In all cases, the merchandise shall be subject to physical inspection by the Customs Authority.

Discrepancy procedure. If as a result of the immediate verification, it is verified that the merchandise object of reimportation does not return in the same state, payment of the differential on the added value incorporated into the merchandise shall be required and adjustment through the incidents that shall be notified to the exporter, in order for the exporter to proceed with the respective rectification and to effect payment of the adjustment or, in its case, to guarantee in the manner established in Article 52 of the Code. If as a result of the immediate verification, it is verified that the merchandise object of reimportation does not correspond to the merchandise that was temporarily exported or is reimported in a greater quantity, the corresponding legal actions shall be initiated.

Requirements to enjoy the exemption. To enjoy the benefits of this regime upon reimportation of merchandise, the declarant shall comply with the following requirements:

• a)

  That the reimportation declaration of merchandise be duly presented and accepted within the period of permanence of the temporary export;

• b)

  That the merchandise shall not have been subject to any transformation;

• c)

  That the identity of the merchandise be fully established; and d) That the person carrying out the reimportation be the same person who carried out the export.

Reimportation of merchandise outside the period. The reimportation of merchandise that has been exported under the temporary export with reimportation in the same state regime, carried out after the expiration of the period of permanence outside the customs territory established for such regime, shall incur payment of duties and compliance with non-tariff obligations, proper to the definitive import regime, as if such merchandise were imported for the first time into the customs territory.

Cancellation of the regime. The regime shall be cancelled for the following reasons:

• a)

  Reimportation within the established period.

• b)

  Change to the definitive export or passive improvement regimes, within the established period.

• c)

  Loss or destruction of merchandise by act of God or force majeure duly proven to the satisfaction of the Customs Service. In the cases of paragraphs a) and b) all requirements and formalities corresponding to the regime requested shall be complied with.

Supplementarity. The norms relating to temporary import with reexportation in the same state shall be applied to this regime in all matters that are pertinent. CHAPTER XIII TEMPORARY EXPORT FOR PASSIVE IMPROVEMENT

Declaration of merchandise. The declaration of merchandise for the temporary export for passive improvement regime shall contain, to the extent pertinent, the data of the declaration of merchandise for the definitive export regime.

Documents Supporting the Declaration. The declaration of merchandise shall be supported by the documents indicated in Article 321 of this Regulation, with the exception of the documents referred to in subsections a), c) and d) of said Article. In addition, a copy of the performance guarantee shall be attached when the case provided for in subsection a) of Article 526 of this Regulation applies. In the event that at the time of export there is no transport document available, the respective shipping order shall be accepted.

Period of Permanence. The permanence of merchandise under the temporary export regime for passive improvement shall be six months counted from the acceptance of the declaration of merchandise.

Reimportation. The declaration of merchandise for the reimportation of merchandise that has been exported under the temporary export regime for passive improvement, which is carried out within the period of permanence abroad established for said regime, shall be supported by the documents indicated in subsections b) and e), when applicable, of Article 321 of this Regulation, and must attach a certified copy or indicate the number of the temporary export declaration of merchandise. In cases of reimportation of merchandise submitted to improvement and repair, except when it is repair within the performance guarantee period, the commercial invoice must be attached, which certifies the added value incorporated that includes the cost of the repair, if applicable. The same condition applies when it is a matter of reimportation of substitute merchandise with value greater than that temporarily exported. The reimportation of temporarily exported merchandise may be carried out partially or totally and shall not require prior authorization. In all cases, the merchandise shall be subject to physical inspection by the Customs Authority.

Requirements to Enjoy the Exemption. To enjoy the benefits of this regime when merchandise is reimported, the declarant must comply with the following requirements: a) If it is merchandise repaired at no cost or substituted, because it falls within the performance guarantee period: i. That the declaration of reimported merchandise be duly presented and accepted within the period of permanence of the temporary export, attaching a copy of the performance guarantee execution or equivalent document. ii. That the identity of the merchandise be fully established in the case of its repair. If it is a matter of substitution for other identical or similar merchandise, the provisions of the third paragraph of Article 104 of the Code shall apply. b) In other cases of passive improvement: i. That the declaration of reimported merchandise be duly presented and accepted within the period of permanence of the temporary export. ii. That the identity of the merchandise be fully established or that the incorporation of the temporarily exported merchandise in the compensating products that are reimported can be determined. The reimportation of merchandise referred to in subsection a) of this Article shall be effected with total exemption from duties, except: i. In case of substitution, when the substitute merchandise has a greater value, in which case such duties shall be paid only on the resulting difference. ii. In case of failure to prove the recognition of the performance guarantee, in which case the corresponding duties must be paid for the added value of the merchandise and expenses incurred by reason of the reimportation. For the cases provided for in subsection b) of this Article, the corresponding duties shall be paid only on the added value to the exported merchandise and expenses incurred by reason of the reimportation. If the passive improvement was carried out in the customs territory of any of the Member States and if the elements, parts or components added are originating from said Member States, the reimportation shall not be subject to payment of customs duties.

Reimportation of Merchandise Outside the Time Period. If the declaration of reimported merchandise is presented outside the period referred to in numeral i) of subsections a) and b) of Article 526 of this Regulation, it shall cause payment of duties and compliance with non-tariff obligations, proper to the definitive import regime, as if such merchandise were imported for the first time into the customs territory, except in case of fortuitous event or force majeure duly proven to the satisfaction of the Customs Service, which prevented return within the original period, in which case the reimportation of merchandise shall be permitted in accordance with the regulations indicated in Article 526 of this Regulation.

Compensating Products. For the purposes of this regime, compensating products are understood to be merchandise obtained abroad from merchandise that has been sent in temporary export for its passive improvement.

Taxable Base for Repaired Merchandise. In case of repair of merchandise outside the performance guarantee period, the tax obligation shall be determined on the value of the compensating products, plus the services rendered abroad for their repair, freight, insurance and other expenses, in accordance with the applicable tariff according to the customs classification of said products.

Cancellation of the Regime. The regime shall be cancelled for the following reasons: a) Reimportation or change to the definitive export regime, within the established period. b) Loss or destruction of merchandise by fortuitous event or force majeure, duly proven to the satisfaction of the Customs Service.

Supplementary Application. The rules relating to temporary admission for active improvement shall be applied to this regime in all respects that are applicable. CHAPTER XIV - REIMPORTATION

Declaration of Merchandise. The declaration of merchandise for the reimportation regime shall contain, insofar as applicable, the data of the declaration of merchandise for the definitive import regime. The number of the declaration of merchandise for definitive export from which it derives must also be related therein.

Condition of Merchandise. Reimported merchandise must be in the same condition in which it was exported, except for normal deterioration caused by the use for which it was intended, or measures adopted for its preservation, provided that these do not increase the value that the merchandise had at the time of its export.

Documents Supporting the Declaration of Merchandise. The declaration of reimportation of merchandise that was definitely exported referred to in Article 105 of the Code shall be supported by the documents mentioned in Article 321 of this Regulation, with the exception of the documents referred to in subsections a), c) and d) of said Article.

Procedure Before Customs. The exporter, in addition to complying with the requirements established in Article 106 of the Code, must submit a request before the Customs Service indicating the reasons that motivate the return of the merchandise. Once authorized, the dispatch procedure for reimported merchandise shall be carried out in accordance with the procedures established for the definitive import regime. Notwithstanding the foregoing, in all cases the merchandise shall be subject to physical inspection.

Reimportation of Merchandise Outside the Time Period. When merchandise returns to the customs territory outside the period established in subsection a) of Article 106 of the Code, it shall be considered for all purposes as foreign merchandise and as such shall be subject to payment of duties and other restrictions and non-tariff regulations. CHAPTER XV - REEXPORTATION

Declaration of Merchandise. The declaration of merchandise for the reexportation regime shall contain, insofar as applicable, the data of the declaration of merchandise for the definitive export regime, in addition to the identification of the merchandise. The number of the document or declaration of merchandise that covered the entry of merchandise into the customs territory must be related therein, if applicable. The declaration of merchandise for reexportation shall be subject to immediate verification. The Customs Authority that carries out such verification of the declarations of merchandise subject to reexportation shall verify compliance with the requirements established for suspensive customs regimes and what is established for such purposes in Articles 538 and 539 of this Regulation. The presentation of the declaration of merchandise for the reexportation of vehicles covered under the temporary import regime in the tourist category shall not be required, which shall be cancelled with the delivery of the permit at the time of departure from the customs territory, in accordance with what is established in subsection c) of

of this Regulation. The declaration of re-export merchandise may be presented in an accumulated manner for the cases and under the conditions that the Customs Service establishes for that purpose. The Customs Service, through administrative provisions, shall permit, unless otherwise provided by law, that the intervention of the customs agent be optional in the re-export regime.

Documents supporting the declaration. The declaration referred to in Article 537 of this Regulation shall be supported by the documents mentioned in Article 321 of this Regulation, with the exception of the documents referred to in subsections c), d) and e) of said Article.

Merchandise subject to the regime. Under this regime, non-nationalized merchandise that has been destined to any customs regime suspending duties shall be covered. Merchandise found in temporary storage may also be re-exported provided that the same has not been unloaded in error, has not fallen into abandonment, and there has not been established with respect to it a well-founded presumption of a customs or penal infraction, in which case the Customs Authority shall be authorized to permit the regime without requiring the presentation of the respective merchandise declaration. When merchandise requires, for its entry into a country of destination other than that of arrival, a non-tariff requirement or special permit and this cannot be granted, the respective Customs Authority shall authorize the re-export in accordance with the procedure set forth in the preceding paragraph, provided that the request is submitted within the three months following the date of arrival of the merchandise at the port of entry. CHAPTER XVI OF SPECIAL MODALITIES OF DEFINITIVE IMPORT AND EXPORT SECTION I OF POSTAL SHIPMENTS

Responsibility of postal authorities. The postal authorities shall be responsible for the receipt, transport, and storage of postal shipments and their presentation before the Customs Service, which may not be delivered to their addressees without prior authorization from the Customs Service. The postal authorities shall assume the tax consequences resulting from any damage, loss, or theft of the contents of shipments when such situations are attributable to them, except in cases of force majeure or act of God duly proven to the satisfaction of the Customs Authority.

Controls. The Customs Authority in the postal offices shall select the postal shipments that must be subjected to physical examination in said offices, or shall refer them to the authorized places that the Customs Service designates for that purpose, for their subsequent customs treatment.

Notice. At the request of the Customs Service, the postal authorities shall send a notice to the addressees of the postal shipments that, in accordance with the law, require the payment of duties, in order to proceed with the customs clearance thereof. Once the shipment is notified to the interested party, the latter shall present himself at the customs office to inspect the merchandise and declare his willingness to clear it for consumption or return it. In the first case, the customs office shall proceed to process, ex officio, the declaration and shall determine the tax obligation. With the addressee of the merchandise or their duly accredited representative present, along with the respective notification, at the customs office or at the corresponding postal offices, the merchandise shall be inspected. The result of the inspection shall be immediately communicated to the addressee so that he may declare his intention to subject them to a customs regime, re-export them, or expressly abandon them for return to the sender. In the event that he decides to subject them to a customs regime, he must comply with the requirements and formalities relating to the regime in question.

Prohibited merchandise. When merchandise whose import or export is prohibited is introduced into the customs territory or extracted therefrom by postal means, the postal office shall inform the corresponding Customs Authority of such circumstance, so that it may proceed in accordance with the applicable legal provisions.

Import of commercial postal shipments. Persons who, by virtue of their activity, conduct commercial imports by postal means must, in addition to complying with the required customs obligations, submit their declaration through a customs agent or special customs representative. The Customs Authority may not conduct physical examination of postal shipments without the presence of the addressee or their representative.

Non-commercial postal shipments. Non-commercial postal shipments are considered to be merchandise that is sent for personal or family use or consumption of the addressee and shall not be destined for profit-making activities.

Clearance procedure for non-commercial postal shipments. For the clearance of non-commercial postal shipments, the documents referred to in Article 321 of this Regulation shall not be required, and the postal transport document, the corresponding notice, and compliance with the customs obligations required to authorize the regime shall be attached, as appropriate. The merchandise declaration for the clearance of non-commercial postal shipments shall be formulated ex officio by the designated customs official, which must be signed in said act by the addressee, acknowledging receipt of its contents to his satisfaction, otherwise he may make claims before the competent authority. Once the required requirements are met, verification of the merchandise shall proceed. The result of the verification shall include notification of the determined customs tax obligation, so that the addressee may make the payment of the duties. Once payment is proven, the customs official shall authorize the release of the merchandise, which shall be delivered by the postal authority. The official of the postal office may attend the physical examination act, when it proceeds according to the criteria established by customs.

Export of postal shipments. In the case of export of postal shipments, it shall not be required that they be presented before the Customs Service for control purposes, except when they contain:

• a)

  Merchandise whose export requires special authorization from a competent authority;

• b)

  Merchandise subject to restrictions or prohibitions on export or the payment of export duties, as the case may be; and c) Merchandise that is of a value greater than the value established in the corresponding legislation.

Postal shipments in transit. Customs formalities shall be limited to the minimum necessary in order to facilitate the entry and exit of merchandise contained in postal shipments.

Return of commercial and non-commercial postal shipments. After six months counted from the date the addressee received the notice, without having presented himself to request the clearance of the postal shipments, the Customs Authority shall proceed to authorize the postal office for return to the sender. Postal shipments that are not withdrawn within the period indicated in the preceding paragraph shall not constitute abandonment, remaining subject to the procedure established therein. In cases of return abroad, the postal office shall remit to the Customs Authority the information relating to such returns, by magnetic or electronic means under the conditions established by the Customs Service.

Return of merchandise exported by postal means. Parcels and postal shipments of export that are returned to the customs territory by foreign postal offices shall be presented by the postal offices to the customs authorities so that they identify them in order that they may subsequently be delivered to the sender, provided that it is verified that they are the same merchandise originally exported.

Transfer of merchandise. When transfers of postal shipments are made from entry customs offices toward customs warehouses, having entered consolidated with non-postal merchandise, they shall be made under customs control, through the use of the corresponding merchandise declaration. The movement of postal shipments from the port of entry and customs warehouses toward postal offices, or between them, shall be conducted under customs control, by the postal authority and using the established formats.

Small shipments without commercial character entered through postal channels. When small shipments without commercial character are sent through postal channels, their clearance shall proceed in accordance with what is established in this Regulation.

Simplified procedures. The Member States may establish simplified procedures for the clearance of postal shipments of commercial and non-commercial character, preferably using electronic means. This simplified procedure shall be governed by the regulations issued for this purpose by the Customs Service jointly with the postal authorities. SECTION II URGENT SHIPMENTS

Classification. For the purposes of Article 110 of the Code, urgent shipments are considered to be the following:

• a)

  Emergency relief shipments;

• b)

  Shipments that by their nature require urgent clearance; and c) Merchandise entered under the express delivery or courier system.

Emergency relief shipments. Emergency relief shipments are considered to be, among others, the following: merchandise, including vehicles and other means of transport, food, medicines, clothing, blankets, tents, prefabricated houses, articles for purifying and storing water, or other essential goods, sent as aid for persons affected by disasters. Likewise, equipment, vehicles and other means of transport, specially trained animals, provisions, supplies, personal effects and other merchandise for relief personnel in case of disasters that allows them to carry out their functions and help them live and work in the disaster area for the entire duration of their mission.

Clearance procedure. Merchandise included in the preceding Article shall be cleared through simplified and expeditious procedures, in coordination with competent authorities. The release of this type of merchandise shall be authorized with no other requirements than the approval that the designated customs official grants to the lists of merchandise and that are processed by or through the official agencies that the Member States have established for the care of disasters or national emergencies. The clearance of emergency relief shipments shall be granted regardless of the country of origin, provenance or destination of the merchandise. Emergency relief shipments for export, transit, temporary admission and importation shall be processed on a priority basis. The authorities in charge of regulating foreign trade shall coordinate the exercise of their functions with the Customs Authority in such a manner that the release of such merchandise is not delayed. When emergency relief shipments arrive consigned to entities of social interest, charitable entities, non-governmental organizations, associations or foundations of public interest, the entry of merchandise shall be authorized, provided that the transport documents are endorsed to the government entity in charge of channeling the aid. Within a maximum of twenty days following authorization of the release of the merchandise, all information and documentation corresponding to the preparation of the respective official declaration must be provided and presented to the corresponding Customs Authority, these being:

• a)

  The bill of lading or respective transport contract;

• b)

  The document from the competent entity that authorizes the treatment of emergency relief shipments provided for in this Section and the exemption from taxes, or the declaration of emergency made by the competent bodies, which establishes exemption from applicable taxes; and c) The detailed list of emergency relief shipments, issued by the requesting authority or by the customs authorities of the exporting country.

Permits. The presentation of the corresponding import permits for emergency relief shipments may be carried out after the entry of the merchandise. However, in the case of food or medicine and of all those merchandise subject to sanitary conditions, the competent authorities may conduct the inspection prior to authorizing the release of the merchandise.

Customs control. The Customs Service shall ensure compliance with customs obligations for the entry, transit and exit of merchandise under this modality in order to prevent that under its protection customs and foreign trade controls are evaded.

Shipments that by their nature require urgent clearance. Shipments that by their nature require urgent clearance shall be understood to be, among others, the following: vaccines and medicines; prosthetics; organs, blood and human plasma; medical-clinical apparatus; radioactive material and perishable matter of immediate use or indispensable for a person or hospital center.

Simplified procedure. In the case of merchandise included in the preceding Article, the Customs Service shall submit the merchandise declaration to the minimum indispensable procedures to ensure the fiscal interest.

Official processing by customs of urgent shipments by reason of their nature or in response to a duly justified need. The definitive importation of merchandise under the modality of urgent shipments by reason of their nature or in response to a duly justified need may be requested verbally by the consignee, who shall provide and present to customs all the information and documents necessary for it to prepare, determine the customs obligation and process officially the merchandise declaration form. The destination of the merchandise shall be considered formally requested when there is presented to customs, if applicable, the proof of payment of taxes or the corresponding exemption document and the necessary information has been provided and the necessary documents have been presented.

Advance declaration. The clearance of merchandise that by their nature require urgent clearance may be requested in advance, provided that a medical opinion or opinion of a competent authority is presented with the advance request demonstrating the character of immediate or indispensable use of the merchandise. SECTION III EXPRESS DELIVERY OR COURIER

Unloading of packages. The air carrier shall: a) Separate express delivery packages, which shall be properly identified in accordance with what is indicated in Article 567 of this Regulation; and b) Transfer express delivery packages to the facilities enabled for their separation and deliver them to the express delivery company. Packages that do not have the indicated identification shall be entered into the customs warehouse as general cargo. The participation of the Customs Authority in the receipt of vehicles, unloading and loading at the customs port or customs warehouse shall be governed in accordance with what is established in this Regulation and in the application of risk criteria.

Transport of express delivery merchandise in own aircraft. In the case of express delivery or courier companies that transport express delivery shipments, as well as general cargo, in aircraft of their own property, given the dual function they fulfill, they shall present the cargo manifest in addition to the express delivery manifest.

Separation and release of express delivery merchandise. The Customs Authority shall authorize express delivery companies to conduct the operations of separation and release of shipments in areas located in zones under customs control, and for such purpose they must maintain computer equipment with the necessary interconnections to the Customs Service information system. The Customs Authority according to risk criteria may assign customs officials on a permanent basis or attend when necessary to such places.

Merchandise included in the express delivery or courier modality. Merchandise included in the express delivery or courier modality shall be classified by the express delivery or courier company in one of the following categories:

• a)

  Correspondence and documents. This category includes any message, information or data sent through papers, letters, photographs or through magnetic or electromagnetic means of a banking, commercial, judicial, insurance, press nature, catalogs among others, except software, without commercial value, which are not subject to the payment of taxes, restrictions or prohibitions.

• b)

  Shipments subject to payment of taxes. This category comprises shipments with a customs value less than or equal to one thousand Central American pesos and those that comply with what is established in current regulations to be classified as samples, whose merchandise are not subject to restrictions and non-tariff regulations.

• c)

  Shipments not subject to simplified processing. Other shipments not included in the preceding categories shall be governed by the general clearance process. This category includes merchandise subject to restrictions and non-tariff regulations, merchandise destined for a regime other than definitive import or export and merchandise imported under the modality of small shipments without commercial character regulated by Articles 116 of the Code and 595 of this Regulation.

Labeling and identification of packages containing express delivery merchandise. Packages containing express delivery merchandise that arrive or depart from customs territory must be clearly identified through the inclusion of special distinctive markings for documents and other express delivery shipments and must be presented separately from general cargo. Each shipment must be presented sealed and must also contain a label or other means that records at a minimum the following information:

• a)

  Identification of the exporter or shipper;

• b)

  Name and address of the sender;

• c)

  Identification of the express delivery company;

• d)

  Name and address of the consignee;

• e)

  Description and quantity of the merchandise or documents contained;

• f)

  Gross weight of the package expressed in kilograms; and g) Customs value of the merchandise.

Transmission of the express delivery manifest. The express delivery company or courier must electronically transmit the express delivery manifest in advance of the arrival of merchandise, once the general cargo manifest containing the consolidated air waybill or master bill of lading consigned in its name has been transmitted. Upon completion of the classification or separation process of shipments, when differences are detected in the information declared in the express delivery manifest, the express delivery company or courier must within a maximum period of five hours transmit the corresponding corrections and provide the necessary justifications. When the differences found pertain to weight, quantity of packages, or description of merchandise, corrections must be made after authorization by the Customs Authority.

Information contained in the express delivery guide. Each express delivery guide that covers a shipment must contain the information provided by the sender regarding the name of the consignee, description of the merchandise, price according to invoice, and freight.

Data that must be contained in the express delivery manifest. The express delivery manifest, in addition to the information indicated in Article 243 of this Regulation, must contain the following information:

• a)

  Categorization of shipments;

• b)

  Free on board (FOB) value declared;

• c)

  Amount of freight and insurance; and d) Other items that the Customs Service establishes.

Transit shipments. The Customs Authority may authorize the performance of classification, redistribution, and transshipment operations of express delivery shipments in international or domestic transit at the places designated for such purpose and under customs control, which must always correspond to enabled areas within the airport.

Clearance of correspondence and documents. The clearance of shipments contemplated in category a) of Article 566 of this Regulation shall be performed with the information recorded in the express delivery manifest once the manifest separation has been performed and risk criteria have been applied. For shipments in category a) indicated in the preceding paragraph, the express delivery company may transmit in the express delivery manifest a single consolidated guide that will cover all shipments, with an indication of the quantity of packages and gross weight expressed in kilograms.

Simplified declaration. For the clearance of merchandise classified in category b) of Article 566 of this Regulation, once the general cargo manifests and express delivery manifest have been transmitted, the express delivery company or courier must present the simplified goods declaration, which may cover one or several guides belonging to different consignees, provided that the customs value of the merchandise consigned in each of the shipments is less than or equal to one thousand Central American pesos and is not subject to non-tariff restrictions and regulations. The express delivery manifest may be transformed into a simplified goods declaration, when the Customs Service so provides. Merchandise classified in category c) of Article 566 of this Regulation may not be included in the simplified goods declaration, merchandise identified as small personal family shipments without commercial character, and merchandise subject to non-tariff restrictions and regulations, such as permits, certificates, authorizations, exemptions, or others, or due to non-tariff restrictions and regulations, such as application of preferential treaties, quotas, safeguards, countervailing duties, or others. Shipments included in category b) of Article 566 of this Regulation may also be cleared by the consignee thereof through non-self-determined goods declaration or ex officio procedure, as determined by the Customs Service.

of this Regulation by the consignee thereof through non-self-determined goods declaration or ex officio procedure, as determined by the Customs Service.

Time period for clearing shipments subject to payment of taxes. The express delivery company or courier shall have a period of six hours after receipt of the transport unit at the enabled facilities for separation of shipments to present the simplified goods declaration. If such declaration is not presented within the indicated period, the express delivery company or courier must transfer the merchandise to the temporary warehouse or to the customs warehouse regime. In the case of category c) of Article 566 of this Regulation, those that apply under the modality of small personal family shipments without commercial character, and merchandise subject to non-tariff restrictions and regulations, must be delivered immediately to the customs or temporary warehouse keeper upon completion of the separation process. In cases where merchandise was not delivered to the customs or temporary warehouse keeper, the express delivery company must be responsible for tax obligations and respective sanctions.

Mandatory documents. For the clearance of shipments in category b) of Article 566 of this Regulation, the commercial invoice and the individualized air waybill are mandatory.

Clearance of shipments not subject to simplified procedure. Shipments not included in categories a) and b) of Article 566 of this Regulation shall be cleared immediately if their clearance has been processed through general procedures in accordance with the respective regime, or shall be transferred to customs warehouses.

Application of risk criteria. In application of risk criteria, the Customs Authority may apply documentary or documentary and physical inspection in a general or individual manner to shipments declared in the express delivery manifest and to the simplified goods declaration. When other competent authorities must inspect the merchandise, they must coordinate with the Customs Authority the manner and timing for conducting such inspection. SECTION IV TRAVELER'S BAGGAGE

Definition of traveler's baggage. Baggage of a traveler is considered to be merchandise for personal use or for the exercise of their profession or trade during the course of their travel, provided that it has no commercial purpose and consists of:

• a)

  Clothing;

• b)

  Articles of personal use and other articles in proportional quantities to the conditions of the traveler, such as jewelry, handbags, articles of personal hygiene or toiletry;

• c)

  Medicines, food, instruments, medical apparatus, disposable articles used therewith, in quantities in accordance with the circumstances and needs of the traveler. The instruments must be portable. Wheelchair of the traveler if disabled. The stroller and toys of traveling children;

• d)

  Articles for recreation or sport, such as muscle-building equipment, treadmills and stationary and portable bicycles, surfboards, bats, bags, sportswear, footwear and gloves, protective articles for baseball, soccer, basketball, tennis, or others;

• e)

  An image recording apparatus, a photographic apparatus, a cinematographic camera, a sound recording and reproduction apparatus, and their accessories; up to six film rolls or magnetic tape for each one; a radio receiver; a television receiver; a binocular or telescope, and a mobile telephone, all portable;

• f)

  A personal computer; a calculator; an electronic organizer; all portable;

• g)

  Tools, implements, and manual instruments of the traveler's profession or trade, provided that they do not constitute complete equipment for workshops, offices, laboratories, or similar;

• h)

  Portable musical instruments and their accessories;

• i)

  Books, manuscripts, discs, tapes and media for recording sounds or similar recordings. Non-commercial engravings, photographs, and photogravures;

• j)

  Five hundred grams of processed tobacco in any presentation, five liters of wine, brandy, or liquor, per traveler of legal age and up to two kilograms of confectionery;

• k)

  Hunting and sports weapons, five hundred rounds of ammunition, a camping tent and other necessary camping equipment, provided that the traveler is demonstrated to be a tourist. The entry of such weapons and ammunition shall be subject to the regulations of each State Party on the matter; and l) Others established by each State Party.

Special declaration. Every traveler arriving in customs territory by any enabled means must make a declaration in the form issued for such purpose by the Customs Service. Airlines and in general companies engaged in international transportation of persons are obligated to collaborate with the Customs Service for the exercise of control over the entry of travelers and their baggage, including providing the declaration form. When it is a family group, only one declaration shall be made.

Content of the declaration form. The form to be used as a declaration must contain at least data relating to:

• a)

  Identification of the traveler;

• b)

  Travel document;

• c)

  Purpose of the trip;

• d)

  Status;

• e)

  Type and company of transport;

• f)

  Total value of merchandise brought;

• g)

  Countries of origin and destination;

• h)

  Merchandise subject to import restrictions;

• i)

  Description of merchandise;

• j)

  Unaccompanied baggage; and k) Quantity of money or monetary values brought when exceeding the amount permitted by each State Party.

Classes of baggage. Baggage may be: a) Accompanied: when it enters together with the traveler; and b) Unaccompanied: when it enters within three months before or after the date of the traveler's arrival in the customs territory, provided that it is proven that the merchandise originates from the country of his residence or from one of the countries visited by him, even in the case that it enters through a different route than the traveler's point of entry. Accompanied or unaccompanied baggage that the traveler brings into the customs territory shall enjoy the exemption from payment of duties on baggage referred to in Article 113 of the Code, provided that the merchandise that comprises it is within those specified in Article 578 of this Regulation. For the withdrawal of merchandise other than baggage that enters with the traveler and that enjoys the exemption referred to in Article 114 of the Code, the customs official shall, ex officio, make such exemption effective through the corresponding registration in the Customs Service information system. In the event that the value of the merchandise exceeds the amount established in the aforementioned Article, the customs official shall proceed ex officio to declare the merchandise for the payment of applicable duties. In the case of unaccompanied baggage that enters together with merchandise other than baggage, the traveler shall present a request for its withdrawal before the Customs Authority, attaching the list of merchandise other than baggage and the original transport document. If the conditions set forth in this Regulation are met, the corresponding exemption shall be made effective, provided that the traveler is entitled to it. In the event that the value of the merchandise exceeds the amount established in Article 114 of the Code, the Customs Authority shall proceed ex officio to declare the merchandise for the payment of applicable duties.

Conditions to enjoy the exemption. For the traveler to be entitled to the benefit referred to in Article 114 of the Code, he shall comply with the following conditions:

• a)

  That the merchandise to be imported, considering its quantity and type, shall not be intended for commercial purposes;

• b)

  That it is not merchandise of prohibited importation;

• c)

  That he has remained a minimum of seventy-two hours outside the customs territory; and d) Others that may be established by the national legislation of the Member States. The Member States may provide that this benefit may be enjoyed once every six months. This benefit is of a personal character and non-transferable, is not cumulative, and is considered fully enjoyed with any quantity to which it has been applied in a single trip. Captains, pilots, drivers, and crew members of means of transport that engage in international traffic of merchandise shall only be able to bring from abroad or take from the customs territory, free from payment of duties, their personal effects.

Review procedure. The inspection of merchandise that constitutes baggage shall be conducted based on risk criteria. However, such inspection shall be mandatory in the following cases:

• a)

  When it is unaccompanied baggage;

• b)

  When the traveler has not filled out and presented the declaration referred to in Article 579 of this Regulation; or c) When, based on a report, there is reasonable suspicion that the traveler is bringing in merchandise of prohibited importation or there is reason to suspect the commission of the offense of smuggling or customs fraud. When it is necessary to conduct physical inspection of the merchandise, the Customs Authority shall, among other things:

  • a)

    Review the traveler's passport or identification and verify origin, length of stay outside the customs territory, and the date of the last time he enjoyed the benefit of non-payment of duties, if applicable. Similarly, the data in the passport may be compared with the declaration and other migration information;

  • b)

    Compare the merchandise declared with that presented, determine its nature and quantities. If undeclared merchandise is detected, it shall proceed to its seizure and the corresponding procedure shall be followed; and c) Verify that merchandise of restricted importation has the corresponding permits and complies with the other conditions described in this Section.

Declaration and facilities. The declaration of merchandise for importation and exportation of household goods shall be made through simplified procedures based on the detailed list of goods that constitute them, prepared by the declarant, in which the estimated value of such goods shall be specified, as well as the transport document. Commercial invoices shall not be required when it is used merchandise. To the extent possible, the Customs Service shall grant preferential treatment to the clearance of household goods, without prejudice to applicable control measures.

Exclusion. In no case shall vehicles be included as part of household goods, nor shall machinery, equipment, tools, or accessories for offices, laboratories, medical offices, factories, workshops, or similar establishments be included.

Household goods, baggage, and merchandise other than baggage in the same shipment. When baggage, merchandise other than baggage, and household goods arrive in the same shipment, the procedure shall be as follows:

• a)

  For the withdrawal of unaccompanied baggage or for merchandise other than baggage, and to enjoy the exemption referred to in Articles 113 and 114 of the Code, a request shall be submitted to the respective Customs Authority, attaching the list of unaccompanied baggage or merchandise other than baggage, as the case may be, a copy of the transport document, and a photocopy of the passport.

• b)

  For the remaining merchandise considered as household goods, the corresponding declaration of merchandise shall be transmitted electronically, accompanied by the transport document and the detailed list of goods, in which quantity and unit values for used merchandise and the corresponding invoices for new merchandise, among others, must appear.

• c)

  The respective Customs Authority or other competent authority of the Member State, following verification of the requirement referred to in subparagraph a) of Article 21 of the Central American Tariff and Customs Regime Convention, based on the determination of the customs tax obligation, shall grant the exemption referred to in the aforementioned subparagraph.

Industrial process. For the purposes of Article 123 of this Regulation, industrial process is understood as the transformation of direct and indirect materials that are incorporated in a production process that generates a product from those materials. Direct materials are raw materials or primary forms, including mixed (prepared or semi-elaborated) materials that form part of the finished product. Indirect materials are merchandise that is used in the production process, but which by their characteristics are not incorporated into the finished product, such as fuels, fats, lubricants, alcohols, liquids, and cleaning materials.

Receipt in authorized facilities. Companies authorized to operate home delivery clearance must receive in their facilities authorized by the Customs Service, the vehicles and transport units that contain merchandise consigned to these companies.

Groups of companies with financial linkage. This modality may be authorized to companies integrated into business groups with sufficient financial linkage, understood as when the participation, direct or indirect, of one company in another of the group is at least twenty-five percent of the share capital, provided that they also comply with the following requirements: a) Indicate the names of the companies that make up the financially linked group and changes in the members of the group; and b) Indicate that the set of imports of the companies, considered globally, must cover the parameters and conditions required for individual companies.

Exceptions. The Customs Service may except the application of this modality to a determined category of merchandise. It may also except the operation of this modality at one or several customs houses, for reasons of insufficient infrastructure or inadequate human or material resources to exercise customs control. It may equally suspend or cancel the application of this modality to the consignee who fails to comply with legal or regulatory conditions, without prejudice to the applicable sanctions.

Acceptance and verification of the declaration. Once the declaration of merchandise is accepted and the payment of the customs tax obligation is verified, the Customs Service shall indicate whether it is appropriate to order verification through physical inspection of the merchandise in accordance with established risk criteria, once the arrival of the means of transport of the merchandise at the facilities of the authorized companies is confirmed.

Clearance of merchandise without physical inspection. In the event that physical inspection of the merchandise is not required, the declarant shall be notified of the authorization for release of the merchandise. The declarant shall be responsible for immediately notifying the Customs Authority of any difference with the information transmitted to the Customs Service.

Performance of physical inspection. If physical inspection of the merchandise is required, the Customs Authority shall immediately notify the company and designate the official in charge of conducting it. If the result of the physical inspection is consistent with the information declared to customs, the official shall immediately authorize the release of the merchandise. If differences are detected between what was declared and the information that should have been declared, the procedure established in Article 349 of this Regulation shall be followed.

Consolidated merchandise. Merchandise sent under the consolidated transport system shall not be authorized under the home delivery clearance modality.

Dispatch procedure. For the clearance of small shipments without commercial character, the declaration of merchandise shall be formulated ex officio by the Customs Authority, applying the exemption referred to in Article 116 of the Code, provided that the individual person to whom the merchandise arrives consigned under this modality proves his right to withdraw the same, by presenting the shipping document consigned to his name and signing the customs declaration ex officio. In this case, the presentation of the commercial invoice shall not be required. If at the moment of determining the customs tax obligation it is established that the customs value exceeds the equivalent in national currency of five hundred Central American pesos, the Customs Authority shall proceed ex officio to determine the duties, being able to require the importer to present the commercial invoice or any other evidence that serves to establish the true value. If the required documentation is not presented, the corresponding Customs Authority shall, ex officio, proceed to set the value of the merchandise in accordance with the applicable valuation system and require payment of the duties.

Conditions. To enjoy the exemption referred to in Article 116 of the Code, the following conditions must be met:

• a)

  That the recipient has not enjoyed the benefit during the six months prior to the arrival of the merchandise;

• b)

  That the quantity of merchandise to be imported under this modality is not susceptible to being intended for commercial purposes;

• c)

  That the recipient of the merchandise be a natural person; and d) That compliance with non-tariff regulations and restrictions be demonstrated, where applicable, before the Customs Authority. The benefit shall not be cumulative and may be enjoyed once every six months, with any quantity that has been exempted, provided that it does not exceed the amount established in Article 116 of the Code. If the shipment does not qualify under this modality, the dispatch must be processed as non-commercial importation, or other applicable procedure. In the case where merchandise consigned to the same person appears repeatedly in the same cargo manifest and corresponds to two or more shipments from one or different consignors, the procedure shall be to consolidate into a single declaration to establish a single value. The same procedure shall be followed when it concerns parts or pieces that make up a unit or components of the same article or articles in series. When merchandise requires compliance with non-tariff regulations and restrictions, these must be complied with prior to its release. For the purposes of this modality, each State Party shall establish the scope of the term family. The Customs Service shall maintain an updated database with the name and identification number of those who have availed themselves of this modality.

Samples without commercial value. These are merchandise sent at no cost to the consignee, for the purpose of demonstrating their characteristics and that lack all commercial value in the character of samples and that bear legends identifying them as such or that have been made unusable in some manner to prevent their domestic commercialization. Likewise, any merchandise or product imported or exported under that condition is considered a sample without commercial value for the purpose of demonstrating its characteristics and that lacks all commercial value, either because it has none or because of its quantity, weight, volume or other presentation conditions, or because it has been deprived of that value through physical operations of destruction that prevent any possibility of being commercialized. Samples without commercial value are also considered those merchandise whose use or employment as a sample implies its destruction by tasting, testing, analysis, such as food products, beverages, perfumes, chemical and pharmaceutical products and other analogous products, provided that they are presented in conditions and quantity, weight, volume or other forms that unequivocally demonstrate their condition as samples without commercial value.

Dispatch. If merchandise is presented for dispatch as samples without commercial value upon its entry, the Customs Authority shall determine whether it is appropriate to consider them as samples without commercial value and when applicable shall ex officio process the merchandise declaration. When the customs authority determines that the merchandise presented for dispatch does not constitute samples without commercial value, it shall place them under its control and notify the interested party so that they may request, within the legal time frames, another destination for the merchandise.

Documentation to be presented for dispatch. The consignee must present for the dispatch of samples without commercial value:

• a)

  Document of remittance of the samples;

• b)

  Document of transport, where applicable; and c) License or permit for importation, issued by the corresponding competent authorities, when applicable.

Document of transport. When samples without commercial value are consigned together with other merchandise of a commercial character in the same transport document, the importer may separate the samples without commercial value to submit them to the dispatch process referred to in this Section.

Responsibility for the entry or exit of deceased persons. The internment or exit from the customs territory of human remains shall be carried out under the responsibility of the transport company, in coffins and funeral urns properly sealed or in other compartments that meet the conditions established by the authorities in charge of public health or other competent authority.

Documents for the entry of deceased persons. For the entry of human remains, the transport company must present the following documents:

• a)

  Cargo manifest and individualized transport document, which indicates that it concerns human remains;

• b)

  Certificate of death;

• c)

  Certificate of embalming; and d) Those required by disposition of other competent authorities.

Priority procedure. Prior to verification of the documentation provided by the transport company and authorization by the authorities in charge of public health or other competent authority, the Customs Authority, without further procedure, shall authorize the delivery of the human remains.

Tacit abandonment. Tacit abandonment occurs when merchandise is found in any of the following cases:

• a)

  If, being in a port zone or stored in temporary customs warehouses, its customs destination is not requested within the time frame established in Article 283 of this Regulation;

• b)

  When merchandise is in a port zone or customs warehouse and one month passes from the date the customs tax obligation becomes final and is duly notified, without payment of the tax debt having been made;

• c)

  When, having authorized the requested customs regime, the merchandise is not withdrawn from the warehouse administered or not by the Customs Service within thirty days after the authorization of its release;

• d)

  Unaccompanied baggage that is not withdrawn within three months from the date of its entry into the customs territory;

• e)

  When one month passes from the communication to the interested party that merchandise extracted as samples is at their disposal and these have not been withdrawn;

• f)

  If, being stored under the customs warehouse regime or customs warehouse, its customs destination is not requested within the time frame established in Article 492 of this Regulation;

• g)

  Those that have been unloaded by error and are not re-embarked within the time frame established by Article 281 of this Regulation;

• h)

  When thirty days pass, counted from the date the resolution establishing a customs lien on the merchandise becomes final;

• i)

  When fifteen days have elapsed, counted from the date a company, having availed itself of the free trade zone or active improvement regime, where applicable, has ceased operations and has informed the Customs Service without having re-exported or definitively imported its merchandise;

• j)

  When one month passes, counted from the date of notification of the judicial resolution to the legitimate owner, which places merchandise not subject to forfeiture under the custody of the Customs Authority and said owner has not requested its destination;

• k)

  When merchandise under the temporary importation regime that has not provided a guarantee and is not re-exported or nationalized within the time frames authorized in this Regulation, except in the case of tourist vehicles referred to in Article 448 of this Regulation; or l) In other cases provided for in this Regulation. When it concerns merchandise declared in international transit destined to another State Party, the abandonment period shall be three months counted from the date of completion of the unloading of the merchandise or, in the case of land traffic, from the arrival of the means of transport at the corresponding customs.

Rescue of merchandise. For the purposes of what is set forth in

Article 121 of the Code, the merchandise importation declaration shall be presented before the respective customs authority, with the data and documents, where applicable, referred to in Articles 320 and 321 of this Regulation, as well as proof of payment of amounts owed in accordance with numeral 2 of Article 46 of the Code and compliance, where applicable, with the non-tax obligations to which the merchandise subject to rescue is liable. Based on what is established in Article 121 of the Code, it is the responsibility of the respective Customs Authority to have the authority to authorize the dispatch of the merchandise, provided that the requirements indicated in the preceding paragraph are met, without it being necessary, as a prior requirement, the issuance of a rescue resolution.

Determination of base price. The base price of merchandise to be auctioned shall be constituted by: a) The amount of the customs tax obligation as of the date the merchandise becomes abandoned; and b) The rates for customs services and other expenses incurred in the auction process and celebration.

Detail of merchandise to be auctioned and notice to the public. The Customs Service or the Customs Authority authorized by it shall detail the merchandise to be auctioned and shall indicate the date, time and place of the auction. Once the foregoing is done, the auction notice shall be published in the official gazette or in a newspaper of greater circulation, only once, with at least ten days' notice prior to the date of its realization. Likewise, this notice shall be published in a visible place at the customs and in the customs warehouse or place authorized for the conduct of the public sale, without prejudice to publishing it on the electronic page of the Customs Service.

Information that must be contained in the auction notice. The auction notice must contain, among others, the following information:

• a)

  General description of the merchandise to be auctioned, as well as indication of the permits that the same require for their importation, where applicable;

• b)

  Date, time and place where the auction will be held;

• c)

  The base price of the lots or merchandise to be auctioned determined in accordance with this Regulation;

• d)

  The place and time frame for prior exhibition of the merchandise to be auctioned;

• e)

  Indicate to the public that to participate in the auction, they must deposit an amount equivalent to twenty-five percent of the base price of the lots or merchandise in which they wish to participate;

• f)

  That if there is a difference in relation to the adjudication value and the amount previously deposited, it must be paid immediately or the day after the date of adjudication of the merchandise;

• g)

  That the auction is of free attendance, with the exception of officials or employees of the Customs Service, who may not participate directly or indirectly as bidders;

• h)

  Indicate that merchandise will be auctioned individually or integrating lots; and i) That once adjudicated and paid, the merchandise or lots shall be withdrawn within a period not exceeding three days after payment of the respective amount.