Import Policy
(1) 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. The Government of Japan has introduced "Simplified Declaration Procedures" since March, 2001 under which certain cargoes will be released prior to lodging of a declaration for customs duty payment, by separating import declaration and duty payment declaration. Japanese de minimis value for exemption is not necessarily much lower than in other countries (about 2,000 yen in EU). Concerning the basis for customs valuation, the Customs Valuation Agreement of WTO leaves it to the domestic legislation of the member countries to decide whether to adopt FOB or CIF. There are for more countries that use CIF.
(2) Agricultural and Food Products
Tariff levels of each country were determined by the Uruguay Round Agreement and the Japanese Government has been steadily implementing the agreement. WTO Members have maintained certain tariffs, consistent with the WTO Agreement. The U.S. Government should note that the U.S. itself still maintains relatively high tariffs on certain products, such as textiles, vegetables, juice and some plant oil products, even after the tariff reduction by the UR negotiations.
The Japanese agricultural negotiating proposal suggests that we should first discuss the imbalance of rights and obligations that exist between food exporting and importing countries under the present trade rules concerning agriculture, bearing in mind the experience from implementing the reduction commitments and non-trade concerns that are stipulated in Article 20 of the Agreement on Agriculture. The proposal also suggests that we should discuss these issues in a comprehensive manner so that such discussions can be reflected in the trade rules in the twenty-first century that will enable various types of agricultures to co-exist, taking into account the difficulties encountered in each Member's food and agricultural policies, thus contributing to resolving such difficulties. In addition, needless to say, the premise of this proposal is that the long-term objective of the negotiations is the substantial progressive reductions in support and protection.
(3) 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, quota is allocated to importers automatically calculated following calculations that are done according to a publicized formula. Those who import leather and leather shoes less than the allocated quota are penalized in calculating this allocation quota.
(4) Rice
Consistent with the WTO Agreement on Agriculture, the Government of Japan has faithfully implemented measures related to rice import, including its tariffication in April, 1999. The Japanese government has also administered both ordinary import and SBS import in a manner consistent with WTO Agreement. The Government, therefore, does not recognize any outstanding issues between Japan and the United States on rice import. Access of U.S. rice to the Japanese market will be achieved as a result of competition with other exporting countries on providing appropriate varieties, quality and price. If the United States wishes to further increase its rice export to Japan, the U.S. side should make efforts in these areas.
Based on the provision in Article 20 of the Agreement on Agriculture, which stipulates that agricultural negotiations should take into account the experience from implementing the Uruguay Round agreement, the Japanese proposal on WTO agricultural negotiations aims to improve current rules, including pointing out various problems of minimum access. The criticism in the U.S. report that the Japanese proposal is counter to Japan's commitment under the Agreement on Agriculture, therefore, is incorrect.
(5) Wood Products and Housing
Japanese Agricultural Standard (JAS) for wood products is a voluntary system for quality standard for wood products that are distributed domestically. This system treats domestic products and import products equally. Therefore, it is not appropriate to regard this system as a trade barrier.
The Government of Japan is taking its stance on Accelerated Trade Liberalization (ATL) in accordance with the Ministerial Meeting Joint Statement in Kuala Lumpur. In addition, it should be considered that ATL process has not been accepted by non-APEC countries, such as EC and Latin American countries. Hence, the statement related to ATL in the U.S. report does not reflect facts.
Regarding forestry products, the position of the Government of Japan takes is that it will negotiate these sectors in the new WTO round as a part of a comprehensive Round giving due consideration to global environmental issues and sustainable use of resources. The Government of Japan will not participate in a discussion that focuses solely on import tariffs under the issue of sustainable use of resources and non-tariff measures of export countries are addressed.
The Government of Japan has been, so far, working to align Japanese Industrial Standards (JIS) with international standards. The Government of 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.
(6) Marine Craft
The Government of Japan is of the view that series of seminars to promote marine craft exports to Japan held in the U.S. and other places ("EXPORT PLEASURE BOAT TO JAPAN" seminars) has provided opportunities for explaining small craft safety regulation system in Japan to U.S. manufactures and persons concerned and has fostered understanding of the issue. Regarding issues raised in the NTE report, the Government of Japan has already conducted a survey of U.S. trading companies engaged in marine craft exports to Japan and has found that there is neither concrete trouble nor problem concerning market access to Japan. Therefore, the argument of U.S. Government in the report is inappropriate.
Ministry of Land, Infrastructure and Transport and Japan Craft Inspection Organization held an expert level meeting March and December last year with the National Marine Manufacturers Association in order to promote mutual understanding. The meeting based on technical knowledge of experts, was friendly and constructive, and the Government of Japan intends to continue to hold such meetings. In the meeting, there was no indication of a claim that Japan's standard was non- transparent nor that the standard was a trade barrier.
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