Top > Regional Affairs > North America > The United States > Economy > The Government of Japan's Comments on the 1999 National Trade Estimates (NTE) Report > Import Policies

Import Policies

   The tariff rates of Japan are scheduled consistent with the result of UR Agreement, and are all consistent with the WTO Agreement. It needs to be noted that the U.S. itself maintains high tariffs on products, such as textiles and certain agricultural products.

   The report describes that Japan blocked the adoption of the APEC- EVSL policy package of last year. However, 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. In the process of last year, Japan made efforts to reach an agreement in line with the said Joint Statement. So, the above description does not reflect the reality. The problem is, rather, that some economies asserted in disregard of voluntarism and discussed not in line with the Ministerial Meeting Joint Statement of Vancouver. Japan made a reservation on the basis of the principle of voluntarism at the APEC ministerial meeting that, with regard to tariff measures of forest products and fish and fish products, taking measures that would go beyond its UR commitments should be difficult.

   As to the tariff measures in the WTO in 1999 on EVSL 9 sectors, Japan is following the process according to the Ministerial Meeting Joint Statement in Kuala Lumpur.

   Concerning our approach on forest products and fish and fish products in the next WTO negotiations starting from the year 2000, the position of Japan is that it will participate in the negotiations based upon the premise that the next negotiations should be conducted in a comprehensive manner and taking into account such perspectives as global environment issues.

(1) Varietal Testing

   Plant quarantine measures are allowed to be implemented for the prevention of spreading foreign pest, based on scientific evidence. For example, import prohibition measure for cabbage, fresh whole potatoes, etc. ,which is pointed out in the NTE Report, is taken based on a scientific evidence that such import may result in introduction of pest and serious damage to agricultural products in Japan. The U.S. prohibits the importation of many fresh fruits, vegetables and other agricultural products, as well. Japan will take necessary step for implementation in line with the WTO Appellate Body report.

(2) Fumigation Policies

   Under the rules and regulation of Japan, fumigation is not necessary for the pest that meets certain requirements, such as it is widely distributed throughout Japan or has limited distribution pattern but is not nationally controlled. Such non-quarantine pest is designated in conformity with international standard i.e. the Guidelines of FAO. Japan's policy in this regard is highly transparent in that Japan informs the SPS Committee of the WTO when designating non-quarantine pest, submitting the list which is modified from technical point of view, as appropriate.

(3) Tomatoes-Tobacco Blue Mold

   Japan is examining possibility of lifting the import ban on fresh fruit tomato based on scientific point of view. Though the NTE Report refers to the decision of WTO Appellate Body in 1999 regarding varietal plant quarantine measures of Japan, the decision refers to different issues and has no bearing on the issue of parasite tobacco blue mold.

(4) General Food Products

   The tariff rates of Japan scheduled in response to the result of UR Agreement are steadily implemented. The U.S. should note that

  1. many countries beside Japan maintain the high tariffs due to their domestic circumstances,
  2. the U.S. itself maintains high tariffs on products such as textiles, vegetable, fruit juice and certain vegetable oil, etc. The result of UR Agreement should be observed and the U.S. presentation on tariff is wholly inappropriate.

(5) Customs Clearance Procedures

   The average time for customs clearance from import declaration to import permission in Japan has been shortened by expanded introduction of computerized system and other measures. The time is 0.7 hours for air cargo and 5.6 hours for sea cargo in 1998. The average time in the United States in 1991 was 7.6 hours. If the U.S. figure still remains at this level today, the time in Japan is much shorter than the U.S.'s. The statement in the report that Japan is the only advanced industrial country using a CIF basis is not true. The number of countries using CIF, including EU members, exceeds the number of those which do not. A maximum number of shipments per hour in overtime processing is decided based on the current situation of customs clearance and has been reviewed as necessary. The maximum number of shipments will be further increased in June 1999. Since the de minimis value for exemption in EU is about 3,000 yen, Japanese de minimis value for exemption is not necessarily much lower than in other countries. It is permitted to use private facilities as bonded warehouse on condition that there is no problem from the viewpoint of customs control. The current system allows cargo to be released 24 hours per day.

(6) Leather (Leather Shoes)

   On importation of leather and its products, Japan in 1986 introduced tariff-quota system, which is consistent with the GATT. Both under- quota and above-quota tariff rate are allowed by GATT. Japan steadily implements its commitment in the UR, i.e. sharp reduction of the tariff rates. Japan has voluntarily and substantially expanded the quota, thus the low rated under-quota import increased. That is why portion of above-quota imports is small.

(7) Rice

   The accessibility to Japan's rice market of U.S. rice is to be achieved by export effort of U.S. suppliers; including plant breeding suitable for the market, and competition with other countries' rice in terms of quality and price. If the U.S. seeks to ensure its accessibility to Japan's rice market, it is important to make such export efforts.

(8) Wood Products/Housing

   As a result of UR, Japan committed to average 50% tariff reduction (concessions base) on wood products and pursuant to the agreement, implemented the significant reduction of the tariff in 1998, which resulted in narrow difference of tariff rates between logs (generally free of duty) and that of value-added wood products. The NTE report assertion that reasoned that the tariff rate difference causes decreases of U.S. value-added wood products exports to Japan is erroneous.

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