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Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
Japan nutsdryfruits
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Japan nutsdryfruits

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  • 1. A-3. Nuts / Dried fruits3 Nuts / Dried fruits1. Market Conditions in Japan(1) Definition of Category 【Nuts】 HS Numbers Commodity 0801.11,19 Coconuts 0801.31,32 Cashews 0802.11,12 Almonds 0802.21,22 Hazel nuts 0802.31,32 Walnuts 0802.40 Chestnuts 0802.50 Pistachios 0802.90-200 Macadamia nuts 0801.21,22 Other edible nuts (Brazil nuts, betel-nuts, 0802.90-100、-300、-400 pecan nuts, and others) 【Dried fruits】 HS Numbers Commodity 0803.00-200 Bananas 0804.20-090 Figs 0804.50-090 Guavas, mangos, mangosteens 0806.20 Raisins 0813.10 Apricots 0813.20 Prunes 0813.40-010 Berries 0813.40-022 Dried Persimmons 0804.30-090、0813.30-000 Pineapples, apples, papayas, passion 0813.40-021、-023、-029 fruits, etc, and others (2) Market Trends General consumer awareness of nuts and dried fruits remains low, because most are traditionally used asingredients in the production of confectioneries and bread-making, rather than direct consumption, and thedistribution route is limited. Also, nuts and dried fruits have higher prices than peanuts, etc., so consumptionhas not expanded. However, taste has diversified beyond almonds and raisins in the past few years. The highnutritional value of nuts and dried fruits, such as dietary fiber and abundant vitamins, has started to berecognized, and a health food image has started to form as the health-consciousness and beauty interests ofconsumers increase. Popularity is expected to increase and demand is expected to expand, as nuts and driedfruits are consumed as supplements and are used as part of dietary supplements by more women and youngpeople in the future. Various nutrients have gained consumer attention in Japan recently, especially as consumers begin torecognize the various functions of nuts, such as those containing oleic acid (mono-unsaturated fatty acid) toreduce cholesterol, and abundant dietary fiber to slow digestion and encourage effective dieting. As such, eachmanufacturer aims to expand the demand for nuts, not as traditional snacks, but by promoting them as healthfood, such as the introduction “no-salt types” which can be eaten everyday without concern to salt content.And for dried fruits, not only traditional items such as raisins and prunes, but also other kinds, such as mangos,figs, and berries are for sale, and individually packaged products in the handy, carrying packages with a zipperare now sold, for casual eating as a snack have become available. The distribution route for nuts and dried fruits is expanding not only to general supermarkets, but alsoconvenience shops, general merchandise stores, 100 yen shops, etc, so availability to consumers at these storesis increasing. Also, regarding almonds, walnuts, raisins, and prunes produced in the U.S, U.S. industry groupsare actively developing PR activities to increase demand in Japan. Various programs are planned to raise theawareness by consumers, such as health seminars and new menu development through tie-ups with variousgroups, in addition to advertisements via the mass media and Internet.MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN48
  • 2. A-3. Nuts / Dried fruitsMarket Trend by Main Categories[Nuts] ① Almonds Among all nuts, almonds are the most consumed throughout the world; 70-80% are produced in California,U.S.A. Japan imports approximately 8% of the total quantity of almond exports by the U.S, with India,Spain, and Germany following as partner countries. 97.4% (quantity base, 2005) of all almonds imported toJapan are U.S. sweet almonds, mainly imported without shells. Nonpariel almonds are the predominantvariety. Almonds are used over a wide range, including whole roasted, crushed roasted (chunks), sliced, powder, andpaste. According to an estimate by the Japan Branch of Blue Diamond Almond Growers, approximately 70%of all almond demand is for confectionery ingredients (chocolate confectioneries, western cakes, baked cakes),and approximately 20% is for snack nuts, with the remaining for ice cream, restaurant industry use, andcooking. The Japan Office of the California Almond Society, began full-scale promotional activities in Japan as of1998, and disseminating nutritional information on almonds, and providing suggestion for various way to eatthem. Almond consumption quantity per person in Japan is still about one third to one half that of a personin Europe, but recently, it has gained attention as a health food, such as its anti-oxidant effect due to a highcontent of vitamin E and polyphenol, and the effect of oleic acid to reduce cholesterol, and its diet effect dueto abundant dietary fiber. ② Chestnuts Chestnuts are the most consumed nut in Japan. Chestnuts used for food can be divided into four types,Chinese chestnuts, American chestnuts, and European chestnuts, and Japanese chestnuts which are distributedthroughout Japan and the southern Korean Peninsula. Domestically grown Japanese chestnuts are mainly eatenfresh. Most chestnuts produced in China, which are about 80% of the imported quantity of chestnuts to Japan,are sweet, broiled chestnuts called Tenshin chestnuts, and are mainly produced in Hebei, China. Chestnutsimported from Korea are mainly shelled and are used for “candied chestnuts” and ingredients inconfectioneries. In addition, although in low quantities, European chestnuts are imported from Italy, etc, andare used as ingredients to make marrons glaces, etc. The demand for shelled chestnuts is sluggish, due to decreased sales for Kuri-kinton (mashed sweet potatoeswith sweetened chestnuts), and confectioneries such as sugared chestnuts, etc. Also, the shipping quantity ofdomestic chestnuts within Japan, has also decreased for 3 straight years (14,900 tons in 2005), the overalldemand for chestnuts has declined. The pocket-size, retort pouch products of shelled chestnuts were popular in2000, mainly supported by young women who enjoyed the single serving size, a product that could be eatenanytime, anywhere, without dirtying ones hands, and natural sweetness using no artificial sweeteners oradditives. However, as interest by consumers has cooled, the sales value has been experiencing a downwardtrend since 2002. ③ Walnuts California, U.S.A and China are the two largest production areas of walnuts in the world. Most walnutsimported to Japan are produced in California, where they are grown, harvested, processed, and stored underexcellent quality management standards, and then are imported to Japan shelled. Total import quantity inrecent years has remained at 10,000 tons per year. Walnuts are also produced in Japan, mainly in Nagano, butproduction quantity is very low. Although walnuts have a high oil content, cholesterol value is zero, and it is the only nut that also containsomega 3 fatty acid (αlinolenic acid), as well as an abundance of vitamin E. Omega 3 fatty acid has beenrecognized to aid in the reduction of cholesterol and the prevention arterial sclerosis, etc. As such the value ofwalnuts has begun to be recognized in Japan in recent years, leading to an increased demand along with theincreased health-consciousness. The import quantity of walnuts has greatly increased in Korea, as well. Walnuts are popular not only in western cakes, but also Japanese cakes, breads, and as secondary ingredientsin various cooking, and have a greater demand in the bakery industry than any other nut. California WalnutsSociety, Japan Office has carried out various information activities, such as the “California Walnuts Contest”encouraging new product development using walnuts, in order to increase demand. ④ Cashews The cashew nut has a unique shape and is mainly produced in Asia, Brazil, and Africa. Due to technicaldifficulties in hulling and shelling, most cashews produced in Africa, etc., are sent to India in the shell. Kerala,India is the largest producer and the exporter in the world, but production has also significantly increased in MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 49
  • 3. A-3. Nuts / Dried fruitsVietnam in recent years, with Vietnam becoming the 2nd largest exporting country in the world in 2005.However, just under 90% of the quantity of imported cashews to Japan is held by India. The demand of cashews has expanded along with the increase in global health-consciousness, with its loweroil content, abundant protein, carbohydrates, and minerals. The texture is soft and sweet, and is mainly used asa snack food, such as in mixed nuts, but is also used in various fields, such as Chinese cooking, cookies, etc. ⑤ Macadamia Nuts Macadamia nuts are originally from Australia and were transplanted to Hawaii, U.S, in 1930, leading tolarge-scale cultivation there, and these two areas are the largest production regions in the world. Macadamianut chocolate is renowned as a typical souvenir from Hawaii. Nuts produced in Hawaii are rarely exported asraw ingredients, and imports are predominately chocolate processed products. Most macadamia nuts, whichare imported to Japan as raw ingredients, are produced in Australia, followed by African countries, such asMalawi and South America. Macadamia nuts have a high oil content, and are loved for their crunchy texture and sweet flavor, and are inhigh demand as ingredients in confectioneries. In addition to being used whole as the center ingredient forchocolate, macadamia nuts are also commonly used as a roasted snack, in high-class confectioneries, anddiced for use in ice cream and cakes. ⑥ Pistachios Pistachios are mainly produced in Iran, with more than 40% of the total world production, followed byCalifornia, U.S, and Turkey. The Pistachio is called the queen of nuts for its good flavor and expensive price.Pistachios have an extremely low saturated fatty acid content, and an abundance of unsaturated fatty acids,such as oleic acid and linoleic acid. Nuts in the shell are in great demand as a snack food and are roasted andprocessed with salt. Shelled nuts are sliced, diced, or processed into a paste and are used as ingredients inhigh-class confectioneries. Up until 1998, 80% of pistachios were imported to Japan by Iran, but aflatoxin was discovered in the nutssold during that year in quantities greatly exceeding regulation standards and were recalled, and violationswere frequently experienced in subsequent import inspections. At present, the U.S. product, with California asthe major production region, holds 90% of the import quantity, and is ranked 1st among import partnercountries. ⑦ Hazel nuts Approximately 80% of all hazel nuts are produced in Turkey, ranking 1st in world production and exportquantity, holding more than 95% of the import quantity to Japan. Hazel nuts have a unique flavor, and arediced and processed into a paste, etc., and used mainly as an ingredient in chocolate. Although they have alower consumption quantity compared to other nuts, Turkey has focused on sales promotion activities in Japan,with the commercial section of Turkish Embassy in Japan functioning as a secretariat of the TurkishHazelnut Association. Efforts, such as introducing health benefits and recipes on the Internet, in addition tovarious events, have been implemented.[Dried fruits] ① Raisins U.S. raisins, with California as the major production region, hold the largest share in the world. Domesticdemand in Japan almost entirely depends on imported products, the U.S holds more than 85% of the importquantity, and Japan is the biggest export destination of U.S. raisins. Most raisins are used for bread-makingand ingredients in confectioneries in Japan, but price has soared, due to factors such as a large cut in U.S.production and adjustments in shipping to Japan to accommodate an increase in California produced wine,detrimentally affecting domestic customers in 2005. ② Prunes Prunes are defined as dried plums, but one type of western (European) plum has many varieties which aresuitable for drying, so they are commonly called "prunes" even if fresh. For dried prunes, more than 80% ofthe import quantity to Japan is held by the U.S, and Japan is the biggest export destination of U.S. prunes.In the U.S, nearly all of its prunes are produced in California, one of the largest production regions in theworld, producing approximately three fourths of the world supply. However, the production quantity hasgreatly decreased due to crop failure for 2 straight years, with price remaining high since 2003. Prunes containan abundance of minerals, such as iron, potassium, vitamin A, and dietary fiber, and quickly became popularas a health food. They are used as an ingredient in health food, such as prune juice and prune extract as well asfor consumption as is.MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN50
  • 4. A-3. Nuts / Dried fruits ③ Dried Persimmons Dried persimmons are produced in Japan as a preserved food since long ago, and are used for confectioneriesand as sweeteners. Fukushima, Nagano, and Yamanashi are prefectures with the highest domestic production,with these three prefectures producing approximately 70% (2004). Regarding import quantity, domesticproduction is stable at 50%, although some yearly fluctuation occurs. The entire import quantity comes fromChina, and regarding export destination from China, Japan ranks 2nd following Korea, and received 37.0% ofthe exported quantity in 2005. Dried persimmons are high in potassium, keratin, dietary fiber, and manyefficacies have been known since long ago. ④ Mangoes The mango is called the king of tropical fruits, and has become popular in Japan over the past few years.Demand in Japan has grown due to the sale of various desserts using mangoes at convenience stores, etc.,beginning 3-4 years ago, and has gained popularity among young people, with trading companies handlingdried mangoes from the Philippines. Dried mangoes sold in Japan are mainly produced on Cebu Island,Philippines; its soft texture and acidic flavor are well received by the consumers.(3) Distribution System and Business Practices in Japan The distribution route for most nuts and dried fruits is aimed at the industrial food industry as ingredients forconfectioneries and bread-making, rather than direct delivery to consumers. Regarding the commercialdistribution route, although the prepared mangoes are packed by the importer and seller, and then distributedthrough the food wholesaler route, confectionery wholesaler route, and retailers, for imported raw nuts, theyare processed into products by the process manufacturer, divided into packages, then distributed through thefood and confectionery wholesaler route and retailer market. Nuts and dried fruits are directly marketed by the import and process manufacturers to the food processingmanufacturers of chocolates, the main users, and other confectionery and bread making manufacturers, and thesmall sized food processing manufacturers are supplied by confectionery ingredient wholesalers. In addition,liquor shops (as side dish snacks for alcohol) are supplied by specialized wholesalers through food warehousedealers and confectionery warehouse dealers. The distribution channels of nuts and dried fruits differ bycategory, but the general outline is as follows. Fig. 1 Distribution channels for import nuts & dried fruits Overseas producers [Commercial use] Importers Processors Large processed food makers [Consumer use] Smaller processed food makers Food wholesalers Confection wholesalers Retail stores (supermarkets, convenience stores, confection shops) Consumers2. Trade Trends(1) Import Trends in Japan[Nuts] Japan relies on overseas import for almost all whole nuts, except certain types such as chestnuts and walnuts.Since the production area for a nut is dependent on its type, import can easily be affected by productionconditions of the country of origin, as well as international supply and demand, and exchange rates. Import of nuts in 2005 was 44.5 billion yen and 73,143 tons. The unit price increased in every category in2005, and the value base recorded the highest mark in history, with a 21.2% increase over the previous year,but the quantity base experienced a 7.7% decrease over the previous year, the third straight year of decreaseafter a peak in 2002 with 86,436 tons. (See Fig.2) Regarding almonds, the largest category of imported nuts, California-grown almonds hold 70-80% of theworld production and decreased production for 3 straight years. Import quantity in 2005 was 25,268 tons MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 51
  • 5. A-3. Nuts / Dried fruits(3.8% decrease over the previous year), a 2-year consecutive decrease. However, import value greatlyincreased to 19.62 billion yen (47.6% increase over the previous year), as the import unit price rose toapproximately 1.5 times over the previous year, expanding the share held by imported nuts over the previousyear (36.2%→44.1%). Furthermore, production of California-grown almonds experienced an increase in2006, the first time in 4 years, and the shipping quantity greatly increased over the previous year. On the otherhand, the value base of chestnuts, another main category, was 7.67 billion yen (10.1% decrease over theprevious year), for the 3rd straight year, and its share in imported nuts was 17.2%, a drop from 40% in 2000(45.1%). Also, a decrease has been experienced for 5 consecutive years at 21,552 tons (14.5% decrease overthe previous year), from a peak in 2000, and 37,384 tons, a 29.5% decrease in share. Fig. 2 Trends in Japan’s nuts imports ( million) [Total import value] ( million) [Import value by category] 50,000 25,000 Almonds 40,000 20,000 30,000 15,000 20,000 10,000 Chestnuts 10,000 5,000 Walnuts 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 (year) (year) Value Volume 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005Almonds 9,309 11,237 12,319 13,288 19,619 24,322 27,978 28,858 26,269 25,268Chestnuts 13,008 11,404 11,971 8,526 7,668 31,695 29,073 25,233 25,207 21,552Walnuts 5,365 5,847 5,170 5,246 5,803 9,087 10,247 9,683 10,734 10,024Macadamia nuts 2,417 3,560 2,902 3,037 4,067 2,893 3,963 2,788 2,445 2,905Cashew s 3,143 3,424 2,534 3,403 3,627 5,833 6,717 5,457 6,908 5,918Pistachios 1,773 1,561 1,286 1,432 1,550 3,466 2,695 2,230 2,347 2,238Hazel nuts 250 309 221 459 697 535 760 527 729 630Coconuts 223 275 268 243 362 2,206 2,497 2,490 2,524 2,649Others 1,233 1,421 1,266 1,077 1,095 2,668 2,504 1,964 2,062 1,960 Total 36,719 39,038 37,936 36,710 44,488 82,704 86,436 79,230 79,226 73,143Unit : value = million, volume = tons Source : Trade Statistics, Ministry of Finance Fig. 3 Trends in nuts imports by category in 2005 Value Volume Average unit price Yearly Yearly Value Share Volume Share 2004 2005 change changeAlmonds 19,619 44.1% 147.6 25,268 34.5% 96.2 506 776Chestnuts 7,668 17.2% 89.9 21,552 29.5% 85.5 338 356Walnuts 5,803 13.0% 110.6 10,024 13.7% 93.4 489 579Macademia nuts 4,067 9.1% 133.9 2,905 4.0% 118.8 1,242 1,400Cashews 3,627 8.2% 106.6 5,918 8.1% 85.7 493 613Pistachos 1,550 3.5% 108.2 2,238 3.1% 95.3 610 693Hazel nuts 697 1.6% 151.9 630 0.9% 86.3 629 1,106Coconuts 362 0.8% 149.2 2,649 3.6% 105.0 96 137Others 1,095 2.5% 101.6 1,960 2.7% 95.0 522 558 Total 44,488 100.00% 121.2 73,143 100.00% 92.3 463 608Unit : value = million, volume = tons, yearly change over previous year = %, average unit price = per kg Source : Trade Statistics, Ministry of Finance In recent years, awareness of nuts as a health food reducing the risk of adult diseases, has increased, so thetendency for increased demand in Europe, U.S, Russia, China, etc. is expected. As such, import unit priceincreased overall in all categories in value, for walnuts it was 5.8 billion yen (10.6% increase over the previousyear), macadamia nuts 4.07 billion yen (33.9% increase over the previous year), cashews 3.63 billion yen(6.6% increase over the previous year), pistachios 1.55 billion yen (8.2% increase over the previous year),MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN52
  • 6. A-3. Nuts / Dried fruitshazel nuts 0.7 billion yen (51.9% increase over the previous year), coconuts 0.36 billion yen (49.2% increaseover the previous year), all exceeding in value over the previous year. On the other hand, the only categorieswhich exceeded the previous year in quantity were macadamia nuts (18.8% increase over the previous year)and coconuts (5.0% increase over the previous year), while chestnuts, cashews, and hazelnuts greatlydecreased, falling more than 10%. (See Fig.3)[Dried Fruits] Japan also relies on overseas import for almost all dried fruits, except dried persimmons, and is affected bythe production conditions of the country or region of origin, international supply and demand, and exchangerates. Import of dried fruits in 2005 was 13.5 billion yen (1.0% increase over the previous year) and 49,732tons(18.0% decrease over the previous year), and could maintain the same level as the previous year due toincreased unit price in most categories, while the quantity base was greatly reduced by the fall in raisins andprunes, which are main categories. The import value of raisins, the largest category among dried fruits, was 6.39 billion yen (7.4% increase overthe previous year) and had a record increase for 2 straight years. The import quantity was 30,360 tons (10.7%decrease over the previous year), considerably lower than the previous year, due to reduced production in theU.S, which holds just under 90%, of raisin imports to Japan, shipping adjustments to Japan based on thesupply and demand for grape ingredients in anticipation of an increase in California wine production quantity,but the share in whole dried fruits imports (value 47.1%, quantity 61.0%) expanded for 2 straight years.However, prunes, another staple merchandise, posted a large drop at 10,904 tons (40.5% decrease over theprevious year) in import quantity, due to California-grown prunes, which hold a 80-90% share of the importquantity, experienced crop failure, so the import unit price rose approximately 1.5 times that of the previousyear. The import value was 4.13 billion yen (12.7% decrease over the previous year), resulting in a largereduction in its overall share, both for value (30.5%) and quantity (21.9%). Import unit prices have also increased in other categories, but both import value and quantity increased fordried persimmons (1.06 billion yen, 4,761 tons), figs (0.55 billion yen, 1,383 tons), as well as, guavas,mangoes, and mangosteens with 0.12 billion yen (87.0% increase over the previous year) and 162 tons (76.8%increase over the previous year), posting large increases, although the overall share is still small. On the otherhand, apricots (0.41 billion yen, 781 tons), berries (0.16 billion yen, 80 tons) greatly decreased both in valueand quantity, and bananas were also lower than the previous year. (See Fig.4, 5) Fig. 4 Trends in Japan’s dried fruits imports ( million) [Total import value] ( million) [Import value by category] 15,000 8,000 Raisins 6,000 10,000 Prunes 4,000 5,000 2,000 Dried Persimmons 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 (year) Value Volume 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005Raisins 4,379 4,835 4,690 5,943 6,385 28,152 30,913 29,736 33,981 30,360Prunes 4,277 4,456 4,550 4,734 4,132 16,742 16,244 17,325 18,320 10,904Dried Persimmons 1,150 977 640 769 1,063 4,832 5,151 3,572 4,560 4,761Figs 636 552 496 516 550 1,755 1,265 1,163 1,322 1,383Apricots 572 470 557 514 411 1,397 1,037 1,033 1,047 781Berries 582 449 370 224 164 242 193 154 114 80Guavas, Mangos, Magosteens, 77 53 39 66 124 254 113 77 92 162Bananas 76 93 84 91 88 249 304 285 330 315Others 392 864 805 552 631 888 1,252 1,579 881 986 Total 12,140 12,748 12,231 13,409 13,547 54,510 56,472 54,925 60,647 49,732Unit : value = million, volume = tons Source : Trade Statistics, Ministry of Finance MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 53
  • 7. A-3. Nuts / Dried fruits Fig. 5 Trends in dried fruits imports by category in 2005 Value Volume Average unit price Yearly Yearly Value Share Volume Share 2004 2005 change changeRaisins 6,385 47.1% 107.4 30,360 61.0% 89.3 175 210Prunes 4,132 30.5% 87.3 10,904 21.9% 59.5 258 379Dried Persimmons 1,063 7.8% 138.2 4,761 9.6% 104.4 169 223Figs 550 4.1% 106.5 1,383 2.8% 104.7 391 398Apricots 411 3.0% 80.0 781 1.6% 74.6 491 526Berries 164 1.2% 73.0 80 0.2% 70.5 1,965 2,036Guav as, mangos, mangosteens 124 0.9% 187.0 162 0.3% 176.8 725 767Bananas 88 0.6% 96.8 315 0.6% 95.3 274 278Others 631 4.7% 114.2 986 2.0% 111.9 626 639 Total 13,547 100.0% 101.0 49,732 100.0% 82.0 221 272Unit : value = million, volume = tons, yearly change over previous year = %, average unit price = per kg Source : Trade Statistics, Ministry of Finance(2) Principal Exporters to Japan and ASEAN’s Position[Nuts] In 2005, a total of 27 countries and regions exported nuts to Japan such as the U.S., Asia including China,India, Korea, and Australia, Central and South America, and countries in Africa, etc. However, the productionareas are limited according to the category, and 3 countries hold more than 90% of the value in mostcategories, with 5 countries exporting nuts to Japan having totals over 2 billion yen per year, the U.S, China,Korea, India, and Australia, and countries exporting more than 2,000 tons are limited to 6 countries andincludes the Philippines. (See Fig.6) The U.S. exported the most to Japan, with 25.62 billion yen (34.2% increase over the previous year) and35,512 tons (5.6% decrease over the previous year), posting the a record high in value, reflecting the largeincrease in unit price of almonds, which is approximately 70% of the total quantity in 2005. Exports ofwalnuts, pistachios, etc., to Japan have also increased in value, with an increase over the previous year in theU.S. share in the overall total, resulting in the dominant share for both value and quantity, at 57.6% and 48.6%,respectively. On the other hand, China, ranking 2nd in exports to Japan in 2005, at 5.75 billion yen (12.7%decrease over the previous year) and 19,865 tons (15.3% decrease over the previous year), experienced a2-year consecutive decrease in value, and 3-year decrease in quantity. As the export of chestnuts, a staplemerchandise, from China to Japan decreased for the 7th straight year in quantity, and 6th straight year inquantity, the share in the overall total decreased from the previous year in both value (12.9%), quantity(27.2%). The difference between these two countries continues to expand every year. Following this, Korea(3.3 billion yen, 4,622 tons), India (3.22 billion yen, 5,250 tons) experienced a decrease in quantity, but a largeincreased in value over the previous year, as the unit price of both chestnuts, a staple merchandise, andcashews rose. Export items from ASEAN to Japan were mainly coconuts and cashews. Nuts exported by ASEAN as awhole to Japan in 2005 was 0.73 billion yen (4.0% increase over the previous year) and 3,203 tons (6.7%decrease over the previous year), and the share of nuts exported to Japan remained at 1.6% in value and 4.4%in quantity. Coconut imports from the Philippines greatly increased in 2005, but the import of cashews fromVietnam decreased, resulting in an overall lower quantity than the previous year, although value exceeded theprevious year. (See Fig.8) By category, in addition to the dominant share held by the U.S. for almonds with 96.7%, and the mainexporting countries to Japan are China (56.6% share), Korea (43.0% share); for chestnuts, the U.S. (89.1%share); for macadamia nuts Australia (64.0% share); for cashew nuts, India (88.8% share); for pistachio nuts,U.S (80.9% share); for hazelnuts, Turkey (96.6% share); and for coconuts, the Philippines (87.4% share).(See Fig.7)MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN54
  • 8. A-3. Nuts / Dried fruits Fig. 6 Principal exporting countries and regions of nuts to Japan [Import value from major countries] [Share of import value in 2005] ( million) 30,000 ASEAN EU Others 1.6% 1.2% 25,000 U.S.A. 26.7% 20,000 15,000 10,000 China China Korea 5,000 India 12.9% U.S.A. 57.6% 0 2001 2002 2003 2004 2005 (year) 2001 2002 2003 2004 2005 Average Value Value Value Value Volume Value Volume unit priceU.S.A. 15,421 17,455 17,828 19,095 37,626 25,618 57.6% 35,512 48.6% 721China 7,279 7,566 8,785 6,591 23,461 5,753 12.9% 19,865 27.2% 290Korea 7,313 5,763 4,775 3,286 4,802 3,295 7.4% 4,622 6.3% 713India 2,644 2,720 2,136 2,896 5,842 3,222 7.2% 5,250 7.2% 614Australia 1,216 2,049 1,822 1,772 1,483 2,963 6.7% 2,241 3.1% 1,322Turkey 240 295 208 446 713 676 1.5% 612 0.8% 1,105Malaw i 284 389 360 413 349 544 1.2% 381 0.5% 1,426South Africa 118 324 308 301 268 513 1.2% 369 0.5% 1,389Kenya 665 643 441 542 427 388 0.9% 296 0.4% 1,309Vietnam 423 618 308 439 931 340 0.8% 568 0.8% 599Philippines 173 203 203 192 1,968 316 0.7% 2,133 2.9% 148Others 943 1,014 761 738 1,355 859 1.9% 1,294 1.8% 664 Total 36,719 39,038 37,936 36,710 79,226 44,488 100.0% 73,143 100.0% 608 (E U) 219 344 439 463 441 526 1.2% 445 0.6% 1,184 (ASEAN) 680 943 607 701 3,431 730 1.6% 3,203 4.4% 228Unit : value = million, volume = tons, average unit price = per kg Source : Trade Statistics, Ministry of Finance MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 55
  • 9. A-3. Nuts / Dried fruits Fig. 7 Principal exporting countries and regions of nuts by category (2005, in value basis) Almonds Chestnuts Yearly Average Yearly Average Counrty Value Share Counrty Value Share change unit price change unit price 1 U.S.A. 18,975 96.7% 145.9 770 China 4,341 56.6% 83.4 258 2 Australia 330 1.7% 1262.8 958 Korea 3,295 43.0% 100.3 713 3 Spain 217 1.1% 146.7 1,160 Italy 31 0.4% 104.1 400 4 Italy 92 0.5% 92.1 1,060 Australia 0 0.0% - 1,017 5 France 5 0.0% 202.3 1,257 France 0 0.0% - 1,580 (ASEAN Total) - - - - - - - - Walnuts Macadamia nuts Yearly Average Yearly Average Counrty Value Share Counrty Value Share change unit price change unit price 1 U.S.A. 5,170 89.1% 109.7 598 Australia 2,602 64.0% 153.4 1,394 2 China 603 10.4% 119.4 449 Malaw i 544 13.4% 131.8 1,426 3 France 26 0.4% 111.5 926 South Africa 513 12.6% 170.7 1,389 4 Chile 3 0.1% 118.2 649 Kenya 373 9.2% 71.0 1,422 5 Spain 0 0.0% - 3,361 Guatemala 28 0.7% - 1,553 (ASEAN Total) - - - - - - - - Cashew s Pistachios Yearly Average Yearly Average Counrty Value Share Counrty Value Share change unit price change unit price 1 India 3,222 88.8% 111.2 614 U.S.A. 1,254 80.9% 112.5 624 2 Vietnam 337 9.3% 76.9 601 Iran 164 10.6% 104.9 876 3 Indonesia 33 0.9% 122.1 621 Italy 127 8.2% 98.1 3,404 4 Sri Lanka 20 0.5% 177.3 1,011 Australia 4 0.3% 13.9 869 5 Kenya 15 0.4% 89.4 440 France 1 0.0% - 3,625 (ASEAN Total) 371 10.2% 79.7 603 - - - - Hazel nuts Coconuts Yearly Average Yearly Average Counrty Value Share Counrty Value Share change unit price change unit price 1 Turkey 673 96.6% 150.9 1,101 Philippines 316 87.4% 164.9 148 2 Italy 20 2.9% 172.8 1,286 Thailand 32 8.8% 93.3 88 3 Spain 3 0.4% 1096.9 1,200 Singapore 4 1.2% 416.8 85 4 U.S.A. 1 0.1% 81.6 1,535 Sri Lanka 4 1.0% 91.8 199 5 Costa Rica 3 0.9% 102.3 67 (ASEAN Total) - - - - 355 98.0% 151.0 138 Others Yearly Average Counrty Value Share change unit price 1 China 808 73.8% 96.9 485 2 U.S.A. 217 19.8% 103.7 1,027 3 Peru 30 2.7% 432.6 749 4 Australia 26 2.4% 145.4 1,115 5 Turkey 4 0.3% 553.4 2,882 (ASEAN Total) 4 0.4% 318.7 456Unit : value = million, yearly change over previous year = %, average unit price = per kg Source : Trade Statistics, Ministry of FinanceMARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN56
  • 10. A-3. Nuts / Dried fruits Fig. 8 Nuts imports from ASEAN by country /category [Value] [Volume] ( million) (tons) 1,000 943 5,000 800 730 4,000 3,743 680 701 3,431 607 3,091 3,203 3,007 600 3,000 400 2,000 200 1,000 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 (year) Average Value Volume unit price 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 2005 Almonds - - - - - - - - - - - Chestnuts - - - - - - - - - - - Walnuts - - - - - - - - - - - Macademia nuts - 13 - - - - 13 - - - - Cashew s 461 661 346 465 371 877 1,324 748 984 615 603 ASEAN Pistachios - - - - - - - - - - - Total Hazal nuts - - - - - - - - - - - Coconuts 216 267 259 235 355 2,127 2,404 2,338 2,445 2,579 138 Others 2 2 3 1 4 3 2 5 2 9 456 Total 680 943 607 701 730 3,007 3,743 3,091 3,431 3,203 228 Share in Total 1.9% 2.4% 1.6% 1.9% 1.6% 3.6% 4.3% 3.9% 4.3% 4.4% Cashew s 422 612 306 438 337 810 1,243 667 930 560 601 Coconuts 1 4 - - - 34 53 - - - - Vietnam Others - 1 3 1 4 - 2 5 2 8 419 Total 423 618 308 439 340 844 1,298 672 931 568 599 Share in Total 1.2% 1.6% 0.8% 1.2% 0.8% 1.0% 1.5% 0.8% 1.2% 0.8% Coconuts 173 203 203 192 316 1,752 1,862 1,795 1,968 2,133 148Philippines Total 173 203 203 192 316 1,752 1,862 1,795 1,968 2,133 148 Share in Total 0.5% 0.5% 0.5% 0.5% 0.7% 2.1% 2.2% 2.3% 2.5% 2.9% Cashew s 39 48 40 27 33 67 81 81 54 54 621 Coconuts - - - 8 2 - - - 102 25 78Indonesia Others 0 0 0 1 1 0 0 0 1 1 1,074 Total 39 49 40 36 36 68 81 81 156 79 455 Share in Total 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% Macademia nuts - 13 - - - - 13 - - - - Cashew s - - - - 1 - - - - 1 650 Coconuts 42 60 55 34 32 340 488 532 362 362 88 Thailand Others 2 - - - - 3 - - - - - Total 44 73 55 34 32 343 502 532 362 363 89 Share in Total 0.1% 0.2% 0.1% 0.1% 0.1% 0.4% 0.6% 0.7% 0.5% 0.5% Malaysia - - 1 - - - - 11 - - - Singapore - - - 1 4 - - - 13 50 85 Myanmar - - - - 0 - - - - 9 38 Laos - - - - - - - - - - - Cambodia - - - - - - - - - - - Brunei - - - - - - - - - - -Unit : value = million, volume = tons, average unit price = per kg Source : Trade Statistics, Ministry of Finance MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 57
  • 11. A-3. Nuts / Dried fruits [Dried Fruits] Besides the U.S. and China, a total of 31 countries and regions, including EU nations such as France andGermany, the Middle East, such as Turkey and Iran, Central South America, Africa, and Asia, export somekind of dried fruit to Japan in 2005. However, among them, the U.S. holds 70.8% in value and 71.8% inquantity, with a large gap between the rest of countries after China ranking 2nd.(See Fig.9) The U.S., the country with the most exports to Japan in 2005, had 9.59 billion yen (7.9% decrease over theprevious year) and 35,727 tons (25.9% decrease over the previous year), and a particularly large decrease wasrecorded in quantity. Regarding U.S exports to Japan, raisins were the main product, with 58.5% in value,72.5% in quantity (2005), but due to factors such as a decrease in shipping quantity resulting from acreagereduction, and shipping adjustments to Japan by farm producers who expect an increase in California wine, alarge decrease in quantity was experienced in 2005, with a 13.3% decrease over the previous year. Also,prunes, with 35.8% in value, 25.4% in quantity, another main product, greatly decreased both in value (43.5%decrease over the previous year) and quantity (41.0% decrease over the previous year), due to crop failure inthe State of California. On the other hand, China, ranking 2nd in exports to Japan, was 1.53 billion yen (30.3%increase over the previous year) and 5,943 tons (3.9% increase over the previous year), which especiallyincreased in the value base, due to an increase in persimmons, a staple merchandise with approximately 70%in value, and approximately 80% in quantity. Fig. 9 Principal exporting countries and regions of dried fruits to Japan [Import value from major countries] [Share of import value in 2005] ( million) 12,000 ASEAN EU Others 10,000 11.3% 1.0% 5.6% China U.S.A. 8,000 11.3% 6,000 4,000 China 2,000 U.S.A. 0 70.8% 2001 2002 2003 2004 2005 (year) 2001 2002 2003 2004 2005 Average Value Value Value Value Volume Value Volume unit priceU.S.A. 8,777 9,285 9,327 10,410 48,244 9,591 70.8% 35,727 71.8% 268China 1,737 1,691 1,024 1,173 5,722 1,528 11.3% 5,943 11.9% 257Turkey 463 406 478 531 2,272 646 4.8% 3,091 6.2% 209France 33 41 60 91 245 498 3.7% 1,183 2.4% 421Chile 90 245 383 305 1,422 469 3.5% 1,815 3.6% 258Germany 288 355 287 208 54 212 1.6% 57 0.1% 3,737South Africa 266 213 149 172 876 134 1.0% 641 1.3% 209Philippines 16 30 26 53 63 107 0.8% 121 0.2% 882Australia 102 110 109 134 609 107 0.8% 438 0.9% 244Others 368 373 388 332 1,141 255 1.9% 717 1.4% 356 Total 12,140 12,748 12,231 13,409 60,647 13,547 100.0% 49,732 100.0% 272 (E U) 361 428 369 345 433 755 5.6% 1,352 2.7% 559 (ASEAN) 134 107 104 77 123 136 1.0% 196 0.4% 692Unit : value = million, volume = tons, average unit price = per kg Source : Trade Statistics, Ministry of Finance Also, the export of dried fruits from ASEAN as a whole to Japan was 0.14 billion yen (76.8% increase overthe previous year) and 196 tons (60.0% increase over the previous year), a large increase when compared tothe previous year, although the share of dried fruits exported to Japan remained at 1.0% in value and 0.4% inquantity. The total quantity from ASEAN relies on guavas, mangoes and mangosteens as main products by thePhilippines, and the export of guavas, mangoes and mangosteens to Japan nearly doubled in percentage in2005, but still resulted in less than 80% in value and approximately 60% in quantity for ASEAN as a whole.(See Fig.11) When viewing by categories, raisins and prunes were staple products, and the U.S. had a dominant sharewith 0.56 billion yen (87.8% share) and 0.34 billion yen (83.1% share), respectively, and China controls 100%MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN58
  • 12. A-3. Nuts / Dried fruitsof dried persimmons, all items are dominated by a single country. Following this, the main countries exportingto Japan for figs were Turkey (41.8% share) and the U.S. (41.1% share); for apricots and berries, the U.S.(53.1%, 57.9% shares); for guavas, mangoes, and mangosteens, the Philippines (84.3% share); and for bananas,Ecuador (75.1% share) in the value basis. (See Fig.10) Fig. 10 Principal exporting countries and regions of dried fruits by category (2005, in value basis) Raisins Prunes Yearly Average Yearly Average Country Value Share Country Value Share change unit price change unit price 1 U.S.A. 5,606 87.8% 106.4 216 U.S.A. 3,436 83.1% 76.1 379 2 Turkey 297 4.6% 169.9 140 France 489 11.8% 702.4 416 3 Chile 226 3.5% 147.5 210 Chile 179 4.3% 187.5 299 4 Australia 97 1.5% 88.8 226 Italy 21 0.5% - 404 5 South Africa 94 1.5% 93.0 171 China 6 0.1% - 304 (ASEAN Total) 1 0.0% 28.9 753 - - - - Dried Persimmons Figs Yearly Average Yearly Average Country Value Share Country Value Share change unit price change unit price 1 China 1,063 100.0% 138.9 223 Turkey 230 41.8% 127.0 353 2 U.S.A. 226 41.1% 100.8 448 3 Iran 78 14.2% 101.9 371 4 Sw itzerland 7 1.2% 163.4 976 5 France 4 0.8% 50.8 1,336 (ASEAN Total) - - - - - - - - Apricots Berries Yearly Average Yearly Average Country Value Share Country Value Share change unit price change unit price 1 U.S.A. 218 53.1% 98.5 1,146 U.S.A. 95 57.9% 56.5 1,668 2 Turkey 120 29.1% 69.0 364 Germany 40 24.5% 118.8 3,250 3 South Africa 40 9.7% 58.1 443 China 28 17.2% 143.5 2,606 4 China 24 5.9% 121.9 148 Slovakia 0 0.2% - 966 5 Australia 8 1.9% 31.9 950 France 0 0.1% - 7,700 (ASEAN Total) - - - - - - - - Guavas, mangos, mangosteens Bananas Yearly Average Yearly Average Country Value Share Country Value Share change unit price change unit price 1 Philippines 105 84.3% 204.1 892 Ecuador 66 75.1% 93.4 241 2 Mexico 6 5.0% 145.6 1,376 Thailand 10 11.2% 99.7 449 3 China 6 4.8% 142.3 181 Vietnam 3 3.4% 125.4 213 4 Uganda 2 1.6% - 2,096 Germany 3 3.2% 111.9 2,199 5 Ecuador 2 1.3% - 442 Uganda 2 2.0% 371.4 1,100 (ASEAN Total) 106 85.3% 201.3 892 13 14.6% 104.7 357 Others Yearly Average Country Value Share change unit price 1 China 350 55.5% 120.5 478 2 Germany 169 26.7% 99.5 3,950 3 Chile 64 10.2% 115.1 455 4 Thailand 10 1.6% - 360 5 U.S.A. 8 1.2% - 2,106 (ASEAN Total) 16 2.6% 174.1 405Unit : value = million, yearly change over previous year = %, averaga unit price = per kg Source : Trade Statistics, Ministry of Finance MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 59
  • 13. A-3. Nuts / Dried fruits Fig. 11 Dried fruits Imports from ASEAN by country /category [Changes in value] [Changes in quantity] ( million) (tons) 150 134 136 300 276 250 107 104 209 201 196 100 200 77 150 123 50 100 50 0 0 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 (year) (year) Average Value Volume unit price 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 2005 Raisins 82 50 56 3 1 166 99 114 4 1 753 Dried Persimmons - - 0 - - - - 0 - - - Berries - - 0 - - - - 1 - - - ASEAN Guava, mangos, etc. 18 28 23 53 106 24 33 24 61 119 892 Total Bananas 19 10 14 12 13 46 25 41 35 36 357 Others 13 19 10 9 16 40 45 28 23 41 405 To tal 134 107 104 77 136 276 201 209 123 196 692 Share in Total 1.1% 0.8% 0.9% 0.6% 1.0% 0.5% 0.4% 0.4% 0.2% 0.4% Guava, mangos, etc. 16 25 23 51 105 15 25 24 60 117 892 Bananas - 0 - - - - 1 - - - -Philippines Others 0 5 2 2 2 0 6 2 3 4 587 To tal 16 30 26 53 107 15 32 27 63 121 882 Share in Total 0.1% 0.2% 0.2% 0.4% 0.8% 0.0% 0.1% 0.0% 0.1% 0.2% Guava, mangos, etc. 1 3 - 1 1 3 8 - 1 1 843 Bananas 14 8 10 10 10 26 14 21 22 22 449 Thailand Others 7 6 3 5 10 29 25 18 14 28 360 To tal 23 17 13 16 21 58 46 39 36 52 412 Share in Total 0.2% 0.1% 0.1% 0.1% 0.2% 0.1% 0.1% 0.1% 0.1% 0.1% Vietnam 91 58 65 7 7 194 121 142 23 23 320 Indonesia 2 1 0 1 0 7 1 0 1 1 611 Malaysia - - - - - - - - - - - Singapore 0 - - - - 0 - - - - - Myanmar - - - - - - - - - - - Laos 2 2 - 0 - 3 2 - 0 - - Cambodia - - - - - - - - - - - Brunei - - - - - - - - - - -Unit : value = million, volume = tons, average unit price = per kg Source : Trade Statistics, Ministry of FinanceNote) Guavas, mangos, etc : Guavas, mangos, and mangosteens(3) Imports’ Market Share in Japan Regarding nuts, all almonds, cashews, and pistachios are supplied as imported products. There are somedomestic chestnuts and walnuts products, but imported products are predominant, due to the large differencein quantity and price for imported products. Also, regarding dried fruits, the humid climate of Japan is notconducive to the dehydration of raisins, and nearly the entire quantity is imported. For prunes, domesticproduction quantity is low, and nearly the entire quantity is dependent on imports. Although statistics are notavailable for the domestic production quantity of persimmon for some years, and the domestic productionquantity in 2005 is not readily known, it is estimated that around one third of the entire supply quantity is heldby imported products over the past 3-4 years.MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN60
  • 14. A-3. Nuts / Dried fruits3. Key Considerations related to Exporting to Japan(1)Regulations and Procedural Requirements at the Time of Importing in Japan The importation of nuts and dried fruits are subject to the provisions of the Plant Protection Law and theFood Sanitation Law.1) Plant Protection Law In order to prevent the entry into Japan of blight and harmful insects, procedure of plant quarantine is required for the importation of unheat-treated nuts and dried fruits. Only certain sea ports and airports equipped with adequate quarantine facilities are designated as the ports of entry. Upon arrival of cargo at the port of entry, importers of nuts and dried fruits must promptly submit the Plant Protection Station an “Application for Import Inspection of Plants and Import-Prohibited Articles” along with a “Phytosanitary Certificate” issued by the competent governmental agency of the exporting country (application can be filed up to 7 days in advance of arrival of cargo). Upon inspection, when quarantine pests are not detected, “Plant Quarantine Certificate” is issued, and the importation is permitted. Fig. 12 Plant Protection Law procedures Application for import inspection to the Plant Protection Station (“Phytosanitary Certificate” issued by competent government agency of exporting country) Import inspection If quarantine pests detected If quarantine pests not detected Sterilization Issue of ”Plant Quarantine Certificate” Discarded or returned Food Sanitation Law procedures However, products processed such as roasted, and dried fruits listed below are exempted from the Plant Protection Law. Also, almonds, cashews, coconuts, pistachios, Persian walnuts (except walnuts with shells from prohibited import areas), dried macadamia nut powder are subject to the Plant Protection Law, but do not need an attached inspection certificate from the exporting country. (note) However, while other items may be in effect, if the product is dried, import inspection can be performed without an attached plant inspection certificate from the exporting country. Fig 13 Dried fruits that do not need inspection Dried Apricots, figs, persimmons, kiwi fruit, plums, pears, jujubes, dates, pineapples, bananas, papayas, grapes, mangoes, peaches and longans. Under the Plant Protection Law, importation of soiled plants and plants sent from areas inhabited by pests that have not emerged in Japan, or plants that come via those areas (those given in the Plant Protection Law, Enforcement Regulations Appendix 2), is prohibited. Regarding walnut meat (walnuts with shells), import is prohibited in some districts targeting the pest codling moth. In the event infected walnuts are imported to Japan, measures such as incineration are taken. Furthermore, there are cases where importation is permitted under the condition of compliance with standards, such as decontamination, as determined by the Minister of Agriculture, Forestry and Fisheries. In instances where measures to prevent the intrusion of agricultural pests have been established, such as the use of fumigation techniques for agricultural pests or the start of production in regions where such pests pose no problem, import bans may be lifted even when they had been imposed on fresh fruit. The Minister of Agriculture, Forestry and Fisheries may lift import bans when the standard conditions stipulated for fumiga- tion and the like have been met. For more information, see the Website of the Ministry of Agriculture Forestry and Fisheries Plant Protection Station. (⇒English text http://www.pps.go.jp/english/faq/import/kinshi.html) MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 61
  • 15. A-3. Nuts / Dried fruits 2) Food Sanitation Law All food products to be imported for the purpose of sales and marketing are subject to the procedures of Food Sanitation Law. The Importers must submit a “Notification Form for Importation of Food, etc.” together with other necessary documents as ingredients list and production process chart when the processed food is the case, to the quarantine station at the port of entry. Upon examination of the documents, when the products are judged as subject to sanitary inspection, the inspection will be carried out inside bonded area and then decision will be made for import. The procedures required under the Food Sanitation Law is shown as follows. Fig. 14 Procedures required under the Food Sanitation Law Advance consultation service Advance information acquisition (regarding production methods, content of ingredients, etc.) Advance inspection (by the competent government agency of the exporting country, or the official laboratory registered with the Minister of Health, Labor and Welfare) Submission to the Quarantine Station (“Notification Form for Importation of Foods, etc.” and other related documents) Examination of documents Cargo required inspection Cargo not required inspection Failure Pass Certificate of notification processing, or certificate of passing inspection Reshipment, destruction, conversion to other purposes Customs declaration On May 29, 2006, the new positive list system was introduced and came into force. The system stipulates all food products, if detected agricultural pesticides, feed additives, animal veterinary drugs to remain in excess of certain quantity, importation and sales of such food products will be in principle prohibited. In this system, for the agricultural pesticides etc. recognized to use and remain in the product, the maximum residual level is fixed, and for other chemicals uniform standard of 0.01ppm residual level is applicable (quantity understood as hardly affect human health). This positive list system is applicable to all food products including processed food. And in case of nuts and dried fruits, different standards are fixed for each item. For further information on this system, reference to the following website of Ministry of Health, Labor and Welfare is recommended. (⇒http://www.mhlw.go.jp/english/topics/foodsafety/positivelist060228/index.html) Also, almonds, walnuts, brazil nuts, pistachio nuts among nuts, and dried figs among dried fruits are tested for aflatoxin (mold poison), and shelled pistachios from Iran for Pirimiphos-methyl, as targets of inspection order (inspection by Ministry of Health, Labor and Welfare to importers of foods determined to have a high probability of violation of the Food Sanitation Law) (as of September 2006). Measures such as the disposal and return shipment are taken if conditions are not satisfied, as detected by the regulated test method for aflatoxin B1, which has the strongest toxicity among mold poisons and a high detection frequency, and for Pirimiphos-methyl not exceeding the standard value (0.10ppm). It is required for the importers to gather abundant and enough information on the projected import foods to study whether the products meets the requirement of the Food Sanitation Law in their specifications and standards by obtaining, in advance, ingredients lists and production process charts or by making consultation with the quarantine office. Prior to importing, the importer may take a sample of forthcoming imports to laboratories registered with the Ministry of Health, Labor and Welfare or the competent governmental agencies of the exporting countries. Those test results may be substituted for the corresponding inspection at the port of entry, which expedites the quarantine process. In addition, importers who wish to submit their notification by computer may make use of the computerized FAINS (Food Automated Import Notification and Inspection Network System) for processing import-related documentation. Importers who have possessed hardware and software may apply for a security code from the Minister of Health, Labor and Welfare to access the system.MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN62
  • 16. A-3. Nuts / Dried fruits(2) Regulations and Procedural Requirements at the Time of Sale The sale of nuts and dried fruits is subject to provisions of the Food Sanitation Law, the JAS Law, theMeasurement Law, Health Promotion Law and the Act Against Unjustifiable Premiums and MisleadingRepresentations. Containers and packaging may be subject to the provisions of the Containers and Packaging Recycling Lawand the Law for Promotion of Effective Utilization of Resources.1) Food Sanitation Law Under the Food Sanitation Law, it is prohibited to sell food products that contain harmful or poisonous materials or that are unsanitary. In a case where nuts and dried fruits are to be sold, labels based on the Food Sanitation Law (additives used, a notification that allergy material is included, labeling relating to genetic modification, and the like) is obligatory. (see (3) Labeling Regulations)2) JAS Law (Law Concerning Standardization and Proper Labeling of Agricultural and Forestry Products) The JAS Law establishes quality labeling standard for all food and beverage products for sale to the public consumer. Fruits and vegetables, such as raw chestnuts and walnuts in the shell, are required to be labeled in accordance with the Labeling Standard of Quality of Fresh Food Products, and for processed nuts and dried fruits according to the Labeling Standard of Quality of Processed Food Products. (See (3) Labeling)3) Measurement Law Nuts and dried fruits sealed in wrapping or containers are required for weighting to the certain accuracy and labeling of the net content by the Measurement Law.4) Health Promotion Law When labeling the nutritional data on containers and packages or include in promotional documents of processed foods aimed at the sale to consumers, it is obligatory to display in accordance with the Standard of Labeling Nutritional Data stating calories, protein, fat, carbohydrate, sodium and nutritional ingredient in order of the content of quantity . (see (3) Labeling)5) Act Against Unjustifiable Premiums and Misleading Representations The Act prohibits a form of improper labeling exaggerated or false labeling that misleads consumers about the nature or quality of products. The Fair Trade Commission, when necessary to judge the labeling is lawful or false, can request the enterprisers concerned to present the data for reasoning of the labeling contents. If they fail to present the requested data, the Fair Trade Commission will regard the case unlawful. Also vague or confusing labeling that makes it difficult to discern the actual country of origins is also prohibited as a form of improper labeling. The country of origin is defined as “a country in which a treatment of process effecting substantial change to the substance of the goods made.”6) Law for Promotion of Effective Utilization of Resources When paper or plastic is used as a packaging material as wrappings or containers of nuts and dried fruits, a material identifier mark should be labeled. (see (3) labeling)7) Containers and Packaging Recycling Law ( Law for Promotion of Sorted Collection and Recycling of Containers and Packaging) The Law was enacted to promote recycling of containers and packaging waste materials. It provides for sorting by consumers, sorted collection by municipalities, and product reuse (recycling) by product makers and distributors for glass bottles, PET bottles, paper and plastic containers and packaging. Consequently, nut and dried fruit importers and vendors incur the obligation for recycling of containers and packaging. The small-scale importers are exempt from the recycling duty, however, the containers and packaging must carry the identifier labels. (see (3) labeling)(3) Labeling Regulations at the Time of Sale in Japan1)Legally Required Labeling[1] Food Sanitation Law, JAS Law and Measurement Law According to the “Labeling Standard of Quality of Fresh Food” under JAS Laws, it is compulsory for raw chestnuts, unshelled walnuts and other fresh nuts to label the following in Japanese in easily seen areas, such as the container or packaging, or places easily seen by the consumer, such as signs. ① Name ② Country of Origin (generally known place names are acceptable) MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 63
  • 17. A-3. Nuts / Dried fruits When selling nuts and dried fruits sealed in wrapping or containers, following items must be listed all together on the label, under provisions of the Food Sanitation Law, Labeling Standard of Quality of Processed Food under JAS Law and the Measurement Law. <Labeling items to be listed all together> ① Product name ② List of ingredients, list of additives (if used) ③ Net content ④ Best-before date ⑤ Preservation method ⑥ Country of origin ⑦ Importer ‘s or distributor’s name and address <Labeling of Foods Containing Allergy Materials> Under Food Sanitation Law, it is compulsory to label foods (specified raw materials) that have a particular tendency of causing allergies. Five items in which labeling has been made compulsory considering the number of occurrences and degree of seriousness, and 20 items in which labeling is encouraged as much as possible, have been set. In cases where a specified raw material is included in the processed food (including business use food products and food additives that are not directly sold to consumers) that is put into the container packaging, as a principle, a notice to that effect must be labeled in the raw materials column. Specified Raw Materials (Labeling mandatory) Wheat, buckwheat, eggs, milk, peanut (5 items) Materials that are Abalone, squid, salmon roe, shrimp, crab, salmon, equivalent to the specified mackerel, orange, kiwifruit, peach, yam, apple, walnut, raw materials matsutake mushroom, soybean, beef, pork, chicken, (Labeling recommended) gelatine, banana (20 items) [2] Law for Promotion of Effective Utilization of Resources Under the Law, specific containers and packaging are subject to identifier marking provisions in order to promote sorted collection. When paper or plastic is used as a packaging material for wrapping, a material identifier mark must be displayed at least one spot on the side of container with the fixed formalities.2) Voluntary Labeling based on Provisions of Law [1] JAS Law <Inspection and Certification of Organic Processed Food Products> The JAS Law stipulates a “specific JAS standard” for organic processed food products. Only those products that comply with this standard are allowed to include in their labeling the phrase “organic”. Organic processed food products produced abroad (in countries recognized as having a certification program equivalent to the JAS system) must be qualified according to one of the following methods in order to use the phrase “organic”. ① Foreign manufacturers authorized by a registered foreign certification organization, export the product with the JAS Mark self-attached to sell in Japan. ② Importers who obtained approval to qualify from a registered certifying organization in Japan, may self-qualify the product by accompanied certificate (or copy) issued by a public agency abroad. ③ Organic products made by foreign manufacturers who are authorized by a registered certifying organization in Japan may be imported and sold with the JAS Mark attached.MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN64
  • 18. A-3. Nuts / Dried fruits Fig. 15 Inspection and certification system of an organic processed food Organic JAS Mark Minister of Agriculture, Forestry and Fisheries [ Name of Certifying Registered Registration application Registered Registration application Organization] Foreign Registered foreign Countries Certifying organization Certifying organization Certified Certified Certified Certified foreign Not-certified manufacturers, foreign manufacturers Certified foreign sorters Self-qualify for JAS Mark Not-certified importers (Certificate from Public Agency) Certified importers Self-qualify for JAS Mark Contact: Center for Food Quality, Labeling and Consumer Services Headquarters Technical Exchange Department TEL: 048-600-2366 http://www.cfqlcs.go.jp [2] Health Promotion Law Nuts and dried fruits for sale to consumers must display a label of the nutritional data in Japanese on the container or packaging, stating calories, protein, fat, carbohydrate, sodium, and nutritional ingredients based on contents, in accordance with the Standard of Labeling Nutritional Data. Also, the criteria regarding the labeling description is regulated, such as specific nutritional ingredients are added, the high amount contained (high in dietary fiber, contains Vitamin E, etc), or not contained, or low in content (low calorie, sugar-free, etc). For example, to be labeled as “abundant in dietary fiber,” the product must contain more than 6grams per 100grams of fiber.(3) Voluntary Industry Labeling There is no voluntary industry labeling for nuts and dried fruits.(4) Key Considerations for entering the Japanese Market The Food Sanitation Law strictly regulates that aflatoxin is to be non-detectable, and depending on the category, such as almonds and walnuts, are targeted for inspection. Measures such as disposal or return of shipment, etc., may occur if aflatoxin is detected. Furthermore, random inspection by the Public Health Department of the local government is carried out even during the distribution phase, and if a violation of the Food Sanitation Law (in most cases of nuts, aflotoxin is detected beyond its standard level)discovered, recall of the whole lot will be ordered. One should also be aware that if a violation is found in one company and a recall is reported in media, all products from that country suffer, as well as the product itself, including those produced in other countries, and may result in the irreparably loss of consumer trust. Also, prior inspection by the exporting country is essential in the import of safe nuts and dried fruits. Also, since May 2006, in efforts to establish trace-ability (production management track record), and the introduction of a system of a positive list of pesticide residue and a thorough quality control at the production region is required.(5) Considerations for Related Products ① Raw peanuts are subject to a tariff quota, and are subject to the Food Sanitation Law and Plant Protection Law, Too. ② Chocolate with almonds and macadamia nuts, etc, fruits cake with raisins, etc, are exempt from the plant quarantine if heat processing confirmed, but are still subject to the Food Sanitation Law. MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 65
  • 19. A-3. Nuts / Dried fruits(6) Regulatory Agency Contact ・Plant Protection Law Plant Protection Division, Food Safety and Consumer Affairs Bureau, Ministry of Agriculture, Forestry and Fisheries TEL: 03-3502-8111 FAX: 03-3502-3386 (Direct) http://www.maff.go.jp ・Food Sanitation Law Office of Imported Food Safety, Inspection and Safety Division, Department of Food Safety, Pharmaceutical and Food Safety Bureau, Ministry of Health, Labor and Welfare TEL: 03-5253-1111 FAX: 03-3503-7964 (Direct) http://www.mhlw.go.jp ・JAS Law Labeling and Standards Division, Food Safety and Consumer Affairs Bureau, Ministry of Agriculture, Forestry and Fisheries TEL: 03-3502-8111 FAX: 03-3502-0594 (Direct) http://www.maff.go.jp ・Measurement Law Measurement and Intellectual Infrastructure Division, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry TEL: 03-3501-1511 http://www.meti.go.jp ・Health Promotion Law Office of Health Policy on New Developed Foods, Standards and Evaluation Division, Department of Food Safety, Pharmaceutical and Food Safety Bureau,, Ministry of Health, Labour and Welfare TEL: 03-5253-1111 FAX:03-3501-4867(Direct) http://www.mhlw.go.jp ・Act Against Unjustifiable Premiums and Misleading Representations Consumer Related Trade Division, Trade Practices Department, Fair Trade Commission of Japan TEL: 03-3581-5471 FAX: 03-3581-1754 (Direct) http://www.jftc.go.jp ・Law for Promotion of Effective Utilization of Resources / Containers and Packaging Recycling Law Recycling Promotion Division, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry TEL: 03-3501-1511 http://www.meti.go.jp Office of Recycling Promotion, Policy Planning Division, Waste Management and Recycling Department, Ministry of the Environment TEL: 03-3581-3351 FAX: 03-3593-8262 (Direct) http://www.env.go.jp Food Industry Environment Policy Office, Food Industry Policy Division, General Food Policy Bureau, Ministry of Agriculture, Forestry and Fisheries TEL: 03-3502-8111 FAX: 03-3508-2417 (Direct) http://www.maff.go.jp4. Tariff Duties and Consumption Tax in Japan(1) Tariff Duties Figure. 16 presents tariff duties on nuts and dried fruits. In case of confirming the tariff classification or applicable tariff rate in advance, it is convenient to use the “advance counseling program”. By making inquiry to the customs orally, or through documents or e-mail, the customs will reply to such inquiry. Contact: Customs website http://www.customs.go.jp/index_e.htm [Preferential Tariff System] In order to apply for preferential tariff rates on nuts and dried fruits imported from preferential treatment countries, the importer should submit a certificate of preferential country of origin (Form A) issued by the customs or other issuing agency in the exporting country (not required if the total taxable value of shipment is no greater than ¥200,000.-). For some type of fresh vegetables, it is not required to present a certificate of preferential country of origin. For more details, please contact the Customs and Tariff Bureau, Ministry of Finance. [EPA (Economic Partner Agreement)] Between Japan and ASEAN countries, EPA (Economic Partnership Agreement) negotiation is being promoted. In the areas of Agriculture, Forestry and Fisheries, also, abolition and reduction of tariff rates are being reached for consent. By Japan-Singapore EPA for New Era (effective on Nov. 30, 2002) and Japan-Malaysia EPA (effective on July 13, 2006), the EPA tariff rates are applicable for the import of certain consented items of Singapore and Malaysian origin.MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN66
  • 20. A-3. Nuts / Dried fruits Application of tariff rates on ASEAN countries are as follows : Applicable Rates ASEAN Countries LDC Preferential Rate Myanmar, Cambodia, Laos Preferential Rate Thailand, Indonesia, Philippines, Vietnam Japan-Singapore EPA Rates Singapore (note) Japan-Malaysia EPA Rates Malaysia (note) WTO Rate Brunei Note: In case the imported item is not included in the consented items list, WTO tariff rates will apply to the import of Singapore origin and Preferential rates is valid for the import of Malaysian origin. Fig. 16 Tariff duties on nuts and dried fruits Rate of Duty HS No. Description General WTO Preferential Temporary JSEPA JMEPA0801. 11, 19 Coconuts (dried) 6% 3% Free Free 21, 22 Brazil nuts 4% 3% Free Free 31, 32 Cashews Free (Free) Free Free0802. 11, 12 Almonds -100 (1) Bitter almonds Free (Free) Free Free -200 (2) Sweet almonds 4% 2.4% Free Free0802. 21, 22 Hazel nuts 10% 6% Free Free0802. 31, 32 Walnuts 10% (10%) 8.8%0802. 40 Chestnuts 16% 9.6% 9.0%0802. 50 Pistachios Free (Free) Free Free0802. 90 Others -100 (1) Betel-nuts Free (Free) Free Free -200 (2) Macadamia nuts 5% (5%) 2.5% Free *Free -300 (3) Pecan nuts 5% 4.5% Free Free -400 (4) Others 20% 12% 10.9%0803. 00 -200 Dried bananas 6% 3% Free Free0804. 20 -090 Dried figs 10% 6% 3% *Free0804. 30 -090 Dried pineapples 12% 7.2% *Free0804. 50 -090 Dried guavas, mangos, and 6% 3% Free Free mangosteens0806. 20 Dried grapes 2% 1.2% Free Free0813. 10 Dried apricots 15% 9% *Free 7.9% 20 Dried prunes 4% 2.4% Free Free 40 Dried apples 15% 9% 7.9%0813. 40 Dried other fruits -010 (1) Berries 12% 9% 4.5% Free *Free (2) Others 15% -021 (a) Papayas, pawpaws, durians, 7.5% 3.8% Free bilimbis, champeder, jackfruit, *Free bread-fruit, rambutan, rose-apple jumbo, jambosa diamboo-kaget, chicomamey, cherimoya, sugar-apples, bullock’s-heart, passion-fruit, dookoo kokosan, soursop and litch -023 (b) Santols 9% 4.5% Free *Free -022,-029 (c) Dried persimmons, others 9% *Free 7.9%Note 1: “*Free” in Preferential Rate is applicable only for the Least Developed Countries.Note 2: Normally the order of precedence for application of tariff rates is Preferential, WTO, Temporary, and General, in that order. However, Preferential rates are only eligible when conditions stipulated by law or regulations are met. Also, WTO rates apply when those rates are lower than Temporary or General rates.(2) Consumption Tax (CIF + Tariff duty) x 5% MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN 67
  • 21. A-3. Nuts / Dried fruits5. Related Organizations ・Japan Nut Association TEL: 03-5649-8572 FAX: 03-5649-8573 http://www.jna-nut.com ・Japan Dried Fruits Importers Association (c/o Toyota Tsusho Corporation) TEL: 03-5288-3574MARKETING GUIDE FOR ASEAN EXPORTERS TO JAPAN68

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