7. TARIFF ESCALATION
Simple rate average
First stage of processing 8%
Semi processed products 4.8%
Fully processed products 7%
8. TARIFF QUOTAS
Rice and its worked or prepared products
tariff quota quantity : 682,200 tones
Wheat, meslin, triticale and their processed products (wheat basis)
Tariff quota quantity : 5,740,000 tones
Evaporated milk
Tariff quota quantity : 1,585 tones
9. SAFEGUARDS
Milk and cream, not concentrated nor containing added sugar or other
sweetening matter, of a fat content, by weight, exceeding 6%; sterilized,
frozen or preserved; other cream of a fat content, by weight, of 13% or
more (other than sterilized, frozen or preserved)
Volume-based
Buttermilk, curdled milk and cream, kephir and other fermented or
acidified milk and cream, sterilized, frozen, preserved, concentrated or
containing added sugar or other sweetening matter, flavouring, fruits or
nuts
Volume-based
10. Cereals, other than maize (corn), in grain form, pre-cooked or
otherwise prepared, of wheat or triticale, n.e.s.
Price-based
Cereals other than maize (corn, in grain form pre-cooked or
otherwise prepared, of rice, containing more than 30% by
weight of rice, n.e.s.
Price-based
11. ANTIDUMPING
Japan Canada 1 case(s):
DS10
European Union (formerly EC) 6 case(s):
DS8, DS15, DS42, DS66, DS73, DS147
Korea, Republic of 2 case(s):
DS323, DS336
United States 6 case(s):
DS11, DS28, DS44, DS45, DS76, DS245
12. Short title: Japan — Apples
Complainant: United States
Respondent: Japan
Third Parties: Australia; Brazil; China; Chinese Taipei; European Communities; New Zealand
Agreements cited:
(as cited in request for consultations)
Agriculture: Art. 4.2, 14
GATT 1994: Art. XI
Sanitary and Phytosanitary Measures (SPS):
Art. 2.2, 2.3, 5.1, 5.2, 5.3, 5.5, 5.6, 6.1,6.2, 7, Annex B
Request for Consultationsreceived: 1 March 2002
Panel Reportcirculated: 15 July 2003
Appellate Body Reportcirculated: 26 November 2003
Article 21.5 Panel Reportcirculated: 23 June 2005
Mutually Agreed Solutionnotified: 2 September 2005
13. COUNTERVAILING DUTIES
Japan did initiate an investigation into imports of cotton thread
from Pakistan in April 1983 but did not impose a countervailing
duty because Pakistan eliminated the subsidy in February 1984.
Japan stablished first countervailing meassure on Dynamic
Random Access Memories (DRAM chips) from Korea in
December 17th, 2007.
14. SUBSIDIES
Rice:
To ensure stable supply-demand and prices of rice so as
to stabilize national life and economy.
FY 2010 ¥ 337,100 million. (¥ 21,760 million)
15. Dairy and milk products:
To promote sound development of dairy farming and related
industries and to contribute to improvement of nation's dietary life,
through stabilizing prices of milk and dairy products.
FY 2010: ¥22,759 million (¥26,278 million).
16. Bovine meat and Pig meat:
To ensure stable supply of bovine meat and pig meat, and
stable development of cattle and pig farm management.
FY 2010: ¥ 133,523 million (¥ 105,792 million).
17. LICENCES
Import Licensing:
Most goods do not require an import license and can be
imported freely. Japanese import licenses are required for
certain goods, including hazardous materials, animals,
plants, perishables, and in some cases articles of high value.
18. FOREIGN RELATIONAL FTA
Bilateral/regional free-trade agreements adopted by Japan
Japan has ten bilateral FTAs (EPAs) in force: Singapore, Mexico, Malaysia,
Chile, Thailand, Indonesia, Brunei, the Philippines, Switzerland, and Viet
Nam and one regional FTA with the ASEAN.
These FTAs include the application of preferential rates of duty, trade
facilitation, investment, movement of natural persons, competition policy,
and improvement of the business environment.
19. The Agreement on ASEAN-Japan Comprehensive Economic Partnership
(AJCEP) entered into force. Certain agricultural and industrial products,
such as alcoholic beverages, tobacco, and steel products are excluded.
The Japanese Customs applies a preferential tariff based on a bilateral FTA
or the AJCEP, depending upon the certificate of origin of the item
concerned. The AJCEP eliminates tariffs on about 93% of the total value of
Japan's imports from ASEAN countries.
20. FTAs entered into force with Switzerland on 1 September 2009, and with
Viet Nam on 1 October 2009. FTAs Japan has concluded to date
eliminate tariffs on some 91% to 99.9% of the total value of bilateral
trade, all the FTAs exclude similar products, including certain items of
agriculture.
Fish and fish products; petroleum oils (other than crude oil); leather,
leather products, and footwear; and laminated wood.
21. In FY 2010, the overall preferential tariff
range from 2.9% to 3.4%, compared with
Japan's average applied MFN tariff of
5.8%. The total tariff lines that are either
zero or lower than the corresponding
applied MFN rates ranges between
86.3% and 90.3%, and the percentage of
duty-free tariff lines in total is 81.2% to
82.3%.
Some tariff lines, including meat,
fruit juice, leather, and leather
products, are subject to tariff-rate
quotas created especially under the
FTA between Japan and Mexico.
23. PREFERENCES
Generalized System of Preferences and other preferential arrangements
adopted unilaterally by Japan
Under the Generalized System of Preferences (GSP) scheme, Japan grants
preferential tariff treatment unilaterally to certain developing countries.
The Government has the authority to unilaterally designate, withdraw,
suspend, and limit the beneficiaries or products that receive preferential
treatment.
A beneficiary country is removed from the scheme (graduates) when it has
been classified in the World Bank statistics as a high-income country during
the three preceding years.
In 2009, Japan considered that Saudi Arabia had graduated from the scheme
and removed it from its GSP list.
24. Beneficiaries
Import value of preferential treatment
Share (%)
China 1,618,208 77.9
The Philippines 120,686 5.8
Viet Nam 51,858 2.5
Indonesia 49,184 2.4
India 49,158 2.4
Myanmar 26,952 1.3
Brazil 26,458 1.3
South Africa 25,627 1.2
Bangladesh 12,775 0.6
Thailand 10,666 0.5
World
2,077,592 100.0
25. The volume for the granting of GSP preferential tariffs are determined in
accordance with the Temporary Tariff Measures Law, as follows:
The ceiling for FY2001 was established as 103% of the imports of a product in
FY1999; and since 2002, the ceilings increased each year by 3% of the
previous year's ceiling.
The simple average GSP tariff rate is 4.6%, slightly lower than the overall
applied MFN average tariff of 5.8% in FY2010.
Japan grants preferential tariff treatment under its GSP scheme to 140
developing countries and 14 territories for 341 agricultural and fishery
products, and 2,641 industrial products at HS 9-digit level.
26. Exclusion of agricultural products and industrial products (rice and rice
products, meat and meat products, fish and fish products, dairy products,
pineapples, cereal products, textiles and clothing, leather and leather
products, and footwear); MFN tariffs apply to these products imported from
developing countries.
27. SANITARY AND PHYTOSANITARY
MEASURES
Since 2009, there have been several revisions to Japan's food
specifications and standards, which are established under its Food
Sanitation Law.
Revisions include changes to maximum residue limits (MRLs) for
pesticides and amendments on food additives.
The positive list system in 2006, Japan established provisional MRLs for
758 agricultural compounds or components, based mainly on Codex
standards.
28. For example, the maximum residue limits for
azoxystrobin were raised, and those for metalaxyl
were lowered.
New food additives, such as phenethylamine and
butylamine have been allowed.
29. The requirements to allow the importation of fresh fruits from some of
Japan's trading partners including:
Australia (grapefruit)
Chinese Taipei (Hylocerus undatus)
Colombia (Tommy Atkins mango)
Peru (Kent mango)
South Africa (Barlinka grape)
Turkey (grapefruit)
United States (sweet cherries),
Viet Nam (Hylocerus undatus)
30. One food additive (sodium starch phosphate), was no longer marketed and was
replaced by modified starch.
The Quarantine measures on plants and animals are implemented, respectively,
by the Plant Protection Station and the Animal Quarantine Service, both
attached to the Ministry of Agriculture, Forestry and Fisheries.
The Act on Ensuring of Safety of Pet Animals Feed, which entered into force on
1 June 2009, set standards for pet foods and stipulated manufacturing and
import regulations.
31. The authorities in charge of Japan's SPS measures include the Ministry of
Agriculture, Forestry and Fisheries, and the Ministry of Health, Labour and
Welfare, as well as the Food Safety Commission.
Japan currently imposes import prohibitions on
beef and poultry from various countries to prevent
the spread of BSE and avian flu.
In accordance with Food Sanitation Law, imported food may be exempted
from inspection upon importation. In 2010, 3,778 such laboratories were
registered with the Gov.
The Food Sanitation Law, any allergenic substances contained in processed
foods must be indicated on the labels.
32. TECHNICAL BARRIER TO TRADE
MEASURES DIRECTLY AFFECTING EXPORTS
Procedures
The AEO covers warehouse operators, customs brokers, logistics
operators, and manufacturers.
The exportation documents that must be submitted to the Customs:
Export declaration, invoice, and certifications, permits, or approvals
required by various laws and regulations.
The METI has designated the Japan Chamber of Commerce and Industry
(JCCI) as an issuing body for certificates of origin.
Export taxes, charges, and levies: There are no export taxes or levies in
operation in Japan.
33. Border adjustment in respect of internal taxes and import duties
(relating to exports):
Consumption tax
The consumption tax is zero-rated on exported goods, international aviation
and transportation services, and selling or licensing patents to foreigners.
Import duties
Import duties (tariffs) levied on raw materials used in the production of
certain exported goods may be exempted, reduced, or refunded, as
determined by the Gov.
34. Exemption and reduction of import duties
Items are fully exempted from tariffs: lead, cotton seed oil, soya bean oil cake,
certain starches and molasses, sugar, certain starches, molasses, wheat flour
and inputs approved by Customs.
35. Refund of import duties
Import tariffs applied to sugar are fully refundable depending on its sucrose
content. The manufacturing factories require approval from Customs, and
must keep a manufacturing record of the products for two years.
Export cartels
Cartels has prohibition of cartels under Japan's Anti-monopoly Act, the
authorities indicate that there are no known export cartels in Japan.
Export promotion schemes: Export subsidies, finance, insurance, and
guarantees. Japan has no subsidy or tax concession schemes to promote
exports.
36. MEASURES AFFECTING PRODUCTION AND TRADE
Taxation and tax-related assistance
Direct taxes, which include personal and corporate income taxes are
expected 53.5% of total tax revenue in FY2010 according to annual budgets.
Indirect taxes, which include consumption tax (VAT) and excise taxes (liquor,
tobacco, gasoline and automobiles), account of total tax revenue in FY2010.
The highest personal income tax rate, including local taxes, is 50%, and the
highest corporate tax rate (including local taxes) is 40%.
37. National government tax revenue, FY2009 and FY2010
(¥ billion and per cent)
Tax item
FY2009 Budget FY200 Budget
Amount Percentage Amount Percentage
Direct taxes 28,511 59.6 21,128 53.5
Personal income tax 15,572 32.6 12,614 32.0
Corporate income tax 10,544 22.1 5,953 5.
Special corporate income taxa, b 873 .8 ,290 3.3
Inheritance tax 1,522 3.2 1,271 3.2
Indirect taxes 19,305 40.4 18,334 46.5
Customs duty 846 .8 756 .9
Consumption tax 0,30 21.2 9,638 24.4
Liquor tax ,420 3.0 ,383 3.5
Tobacco tax 843 1.8 827 2.1
Gasoline tax 2,628 5.5 2,576 6.5
Liquefied petroleum gas tax 3 0.0 2 0.0
Aviation fuel tax 83 0.2 77 0.2
Petroleum and coal tax 50 . 480 .2
Promotion of power resources development tax 35 0.7 330 0.8
Motor vehicle tax 646 1.4 447 1.1
Tonnage tax 0 0.0 8 0.0
Stamp tax 985 2.1 ,024 2.6
Local Gasoline taxa, b 28 0.6 276 0.7
Liquefied petroleum gas taxa, b 3 0.0 2 0.0
Aviation fuel taxa, b 5 0.0 4 0.0
Motor vehicle taxa, b 323 0.7 307 0.8
Special tonnage taxa, b 3 0.0 0 0.0
Special tobacco surtaxb 95 0.4 58 0.4
Total 47,816 00.0 39,462 00.0
