EUROPEAN UNION

UNITED STATES JAPAN

JAPANESE CUSTOMS DUTIES ON AGRICULTURAL COMMODITIES

Overview
On March 31, 1995, the Japanese Cabinet adopted the Plan for Promotion of Deregulation. The Plan was enacted as a means to facilitate deregulation, and improve the quality of life for Japanese consumers. Under the Plan, it was projected that choices for consumers would expand and gaps between domestic and overseas prices would decrease. Moreover, the deregulations would help Japan foster better international relations by promoting imports and expanding business opportunities. Since the Plan was adopted, both public and private sectors have been making efforts to correct trade imbalances on a global level. Today, you will find among developed countries, Japan's import liberalization is one of the most advanced.

Definitions
Foreign Exchange and Foreign Trade Law - prescribes the goals that import rules and procedures should pursue

Import quotas - limits. The following types apply.
1.	Value of Sale - Restricted by maximum monetary amount which can be spent on the goods in the domestic market (purchased by the wholesalers)
2.	Number of Product Items - a fixed quantity that is allowed to enter the domestic market (bought by the wholesalers)
If it is determined that import quotas apply to the products you want to export to Japan, be sure to carefully study the nature of the quotas. Then be sure to verify that the importer that you intend to handle your products can acquire an allotment within the import quota and accept delivery of your products.

Tariff (also called Customs Duty or Import Tax)
	a. Ad Valorem - a fixed percentage of the commodity's value
	b. Compound - combination of specific and Ad Valorem
	c. Specific - a fixed dollar amount per physical unit of a commodity

Harmonized Tariff System (HTS) - an international coding system that provides duty rates for virtually all-existing items traded worldwide.

Other Laws
Law Concerning Standardization and Proper Labeling of Agricultural and Forestry Products - under this law the Japan Agricultural Standard (JAS) was created. It is an optional health and safety certification. However, when deciding whether or not to apply for certification, foreign manufacturers should consider if the cost of receiving the certification is actually justified by increased consumption.

Product Liability Law - makes manufacturers liable for compensation for injury, death or damage to property resulting from the sale of defective products whether or not such defects can be attributed to accidental or willful faulty manufacture. Manufacturers should take full not of the fact that revisions of The Civil Proceedings Act, 1998, have made it easier for lawsuits to be filed and heard in court.

Temporary Tariff Measures Law - concerns reductions, exemptions, and special restitution of tariffs

Reference: JETRO website and publications

Japan Import Tariffs

Simultaneous Buying and Selling (SBS) Tender
SBS involves the business interests of both exporters and wholesalers. The exporter sells rice to the Ministry of Agriculture (Food Agency) at a low price, and wholesalers buy the rice from the Ministry of Agriculture at a higher rate, providing the Food Agency with a profit margin. Under the SBS bidding system, the Food Agency decides the quantity to be imported every year. The bidding is price competitive. To be a successful exporter, your selling price should be low enough to allow a profit margin to the Food Agency.

Reference: JETRO website and publications

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