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Import Policy

   The Government of Japan has steadily implemented the result of UR Agreement on tariff rates committed in the agreement. The U.S. Government should note the fact that the U.S. itself maintains high tariffs on products, such as textiles and certain agricultural products. The report stated that Japan blocked the adoption of the APEC-EVSL policy package. However, the statement in the U.S. report does not reflect the real situation because the Ministerial Meeting Joint Statement of 1997 in Vancouver states that the implementation of EVSL is conducted on the basis of the principle of voluntarism and Japan made efforts to reach an agreement in line with the Joint Statement. The report also stated that Japan's lack of support was instrumental in preventing the formation of a consensus on EVSL before the Seattle WTO Ministerial Meeting. However, this statement does not reflect the real situation. The Government of Japan is taking its stance on ATL in accordance with the Ministerial Meeting Joint Statement in Kuala Lumpur as it did in APEC-EVSL process. In addition, it should be considered that ATL process has not been accepted by non-APEC countries, such as EC and Latin American countries.

   Regarding forestry and fishery products, the Government of Japan takes a position that it will negotiate these sectors as a part of the comprehensive WTO Round giving due consideration to the global environmental issues and the sustainable use of resources. In this respect, Japan has a view that it is vital to address these issues including sustainable use of resources and non-tariff measures of export countries. Therefore, Japan will not join a discussion which focuses solely on import tariff.

(1) Varietal Testing

   The Government of Japan has already abolished varietal testing guidelines required to export countries December 31, 1999 and is consulting with the U.S. government on new quarantine measures.

(2) Fumigation Policy

   Under the rules and regulation of Japan, fumigation is not applied to the pests that meet certain conditions, such as that these are widely distributed throughout Japan or have limited distribution while not nationally controlled. Such non-quarantine pests are designated in conformity with international standard i.e. the Guidelines of FAO. These policy in this regard is highly transparent on the ground that the Government of Japan informs SPS Committee (Committee on Sanitary and Phytosanitary Measures) in the WTO of designating non-quarantine pest with related list which has been revised from technical point of view,as appropriate.

(3) Fresh Apples-Quarantine Requirements for Fireblight

   As it is highly technical to deal with plant quarantine measures for fire blight, the Japanese plant quarantine authorities continue to consult closely with those of the United States on the issues such as establishment of buffer zone in specified fields.

(4) Fresh Potatoes-Golden Nematode and Potato Wart

   The Government of Japan will examine whether it can authorize States in the U.S. where neither Potato cyst nematode nor Potato wart exists as pest free areas if the U.S. government concretely requests it to Japan with evidences concerned.

(5) Fresh Bell Peppers and Fresh Eggplant-Tobbacco Blue Mold

   Bell Peppers and Eggplants are hosts of Tobacco Blue Mold. It is necessary to prove that this fungus does not infect with these fresh fruits, calyxes and peduncles before these products are permitted to enter to Japan.

(6) General Food Products

   The Government of Japan has steadily implemented the result of UR Agreement on tariff rates committed in the agreement. The U.S. should note that many countries maintain high tariffs due to their domestic situation, and that the U.S. itself maintains high tariffs on products such as textiles, vegetables, fruit juices and certain vegetable oils. With regard to the negotiation in next WTO round, it is important for Japan to consider the issues such as importance of the multi-functionality including food security and impartiality between exporting countries and importing countries.

(7) Customs Clearance Procedures

   The average time for customs clearance from import declaration to import permission in Japan has been shortened by reform of customs clearance procedures, expanded introduction of computerized system and other measures. According to the survey in 1998, the time is 0.7 hours for air cargo and 5.6 hours for sea cargo (7.6 hours for all cargo in the United States in 1991).

   The Government of Japan will introduce "Simplified Declaration Procedures" underwhich certain cargo will be released prior to lodging of a declaration for customs duty payment, by separating import and duty payment declaration. The maximum number of shipments per hour in overtime processing was increased from 20 to 60 in June 1999, whereby the importer's overtime expenses will be reduced. With regard to the de minimis value for exemption, Japanese de minimis value for exemption is not necessarily much lower than in other countries (less than 3,000 yen in EU). Concerning the basis for customs valuation, whether each member countries adopt FOB or CIF shall be decided by their legislation under the WTO. The number of countries using CIF exceeds the numberof those which do not.

(8) Leather

   The Government of Japan introduced tariff-quota system for leather and leather shoes in 1986, which is consistent with the GATT. The Government of Japan has steadily implemented remarkable reduction of the tariff rates which was committed in UR. In addition, regarding allocation of the quota, the quantity automatically calculated under a publicized formula is allocated. Those who import leather and leather shoes less than actual allocation are penalized in calculating the quantity. As the Government of Japan has expanded the quota voluntarily and substantially, beyond minimum amount which was made concession under WTO agreement, the low rated under-quota imports increased, which is the reason for the small quantity of above-quota imports.

(9) Rice

   The Government of Japan has faithfully implemented minimum access opportunities of rice in accordance with WTO Agreement. Access of American rice to Japanese market will be achieved as the result of competition with other exporting countries on appropriate varieties, quality and price for Japanese market. It is for the U.S. to make an effort in this respects if the U.S. wishes to access rice market more than current level. Japan operates both ordinary import and SBS import in a manner consistent with WTO agreement. Therefore, "Rice imported....rarely reaches end consumers" does not reflect the real situation. When rice is imported through SBS system, it is private parties that determine varieties, origins and marketing forms of import rice from the view point of commercial aspects.

   Regarding 170,000 metric tons of excess rice, there is also misunderstanding in the fact of utilization of the existing growers' fund and the amount of contributions from the fund. Also, "the cumulative effect over 30 years" is unclear.

(10) Wood Products and Housing

   Japan Agricultural Standard (JAS) for wood products is a voluntary system for quality standard for wood products domestically distributed and this system equally treats both domestic products and import products. Therefore, it is not appropriate to regard this system as a trade barrier.

   Tariff on wood products is discussed at the head of this chapter.

   The Government of Japan has been, so far, working on alignment of Japanese Industrial Standards (JIS) with international standards. Japan is currently working on establishing and revising ISO for wood building material. After completion of this work, it will review JIS based on new ISO.

(11) Marine Craft

   The Government of Japan recognizes that series of seminars to promote marine craft exports to Japan held in the U.S. and other places ("EXPORT PLEASURE BOATS TO JAPAN" seminars) has provided opportunities for explaining small craft safety regulation system in Japan to U.S. manufacturers and persons concerned and has fostered mutual understandings.

   Regarding issues raised in the NTE report, the Government of Japan has already investigated U.S. manufacturers which is applying the certification under the Japanese system and has found that there is no concrete trouble nor problem concerning market access to Japan.

   Ministry of Transport and the Japan Craft Inspection Organization held an expert level meeting March this year with the National Marine Manufacturers Association on small craft certification in order to confirm concrete problems including issues raised in the NTE reports. The meeting was friendly and constructive and based on technical knowledge of experts, the Government of Japan intends to continue such meeting.

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