Article 1.This Act provides for the rates of customs duty, the basis for duty assessment when customs duty is levied, the reduction of, or the exemption from customs duty and other customs tariff system.

Article 2.For the purposes of this Act or orders based on this Act, the term “importation” means the act as defined in Article 2 (Definitions) of the Customs Act (Act No. 61 of 1954) and the term “exportation” means the act as provided for in item (ii) of paragraph (1) of that Article or other acts of shipping goods from a specific country (with respect to marine products taken from the open sea or from the waters within the exclusive economic zone of Japan or of any foreign country, the specific country includes a vessel of the country by which these products are taken) destined for other country.

Article 3.Customs duty is levied on the value or quantity of imported goods, taken as a basis for duty assessment, and the rates of duty on these goods are as prescribed in the Appended Table.

Article 3-2.In the case referred to in the preceding Article, notwithstanding the provisions of other laws concerning customs duty, the rates of customs duty levied on goods imported, as accompanied goods, by a person at the time of entering Japan, or imported, pursuant to the provisions of Cabinet Order, as unaccompanied goods by that person, are the rates as prescribed in Annexed Table 1 to the Appended Table, which are computed by consolidating, as their basis, the rates of customs duty, internal consumption tax (i.e., internal consumption tax provided for in item (i) of Article 2 (Definitions) of the Act on Collection, etc. of Internal Consumption Tax Imposed on Imported Goods (Act No. 37 of 1955)) and local consumption tax, to be imposed on imported goods; provided, however, that this does not apply if the person notifies the customs that the person does not wish to have Annexed Table 1 applied to any of the goods which the person has brought at the time of entering Japan or which the person imports as unaccompanied goods.

(2)The preceding paragraph does not apply to goods set forth in the following:

Article 3-3.In the case referred to in Article 3 (Basis for duty　assessment and rates of duty), if the aggregate value of imported goods to be taken as a basis for duty assessment, calculated pursuant to the provisions of Articles 4 to 4-9 (in the case of goods for which customs duty is levied on the basis of their quantity (hereinafter referred to as “specific-duty goods”), the value calculated in accordance with Articles 4 to 4-9; the same applies in paragraphs (1) and (2) of Article 6, item (i) of paragraph (1), item (i) of paragraph (4) and item (i) of paragraph (8), of Article 9, Article 11 and item (xviii) of Article 14) (excluding goods imported as accompanied goods by a person at the time of entering Japan, or imported by that person as unaccompanied goods pursuant to the provisions of Cabinet Order referred to in paragraph (1) of the preceding Article; hereinafter the same applies in this paragraph) is not more than 200,000 yen, the rates of customs duty to be levied on these imported goods, notwithstanding the provisions of other laws concerning customs duty, are those as prescribed in Annexed Table 2 to the Appended Table; provided, however, that this does not apply if a person seeking to import these goods (or, if the goods are postal items, an addressee of the postal items) notifies the customs that the person does not wish to have Annexed Table 2 applied to any of these imported goods.

(2)The preceding paragraph does not apply to goods set forth in items (i) and (ii) of paragraph (2) of the preceding Article and to goods specified by Cabinet Order as those inappropriate for applying the rates of customs duty prescribed in Annexed Table 2 to the Appended Table in consideration of the effect, etc. on domestic industry.

Article 4.The value of imported goods which is taken as a basis for duty assessment (hereinafter referred to as “customs value”), except when the main clause of the next paragraph applies, is the price actually paid or payable by a buyer to or for the benefit of a seller for imported goods in an import transaction of these imported goods (customs duty or other charges to be reduced or refunded in a country of exportation at the time of exportation are excluded from that price) (excluding an import transaction conducted by a buyer who does not have a domicile, residence, headquarters, branch, office or place of business or other equivalent establishment in Japan; hereinafter the same applies), plus the cost of transport, etc. as set forth in the following items, to the extent that the cost, etc. is not included in the price actually paid or payable for the goods (hereinafter the value of imported goods as defined in this paragraph is referred to as “transaction value”):

(2)If any of the situations as set forth in the following exists with respect to import transaction of imported goods, determination of customs value of the imported goods is to be made as provided for in Articles 4-2 to 4-4; provided, however, that in the case falling under item (iv), if a person who seeks to import these goods proves, pursuant to the provisions of Cabinet Order, that the transaction value of the imported goods is equivalent or closely approximates to the customs value of goods identical with, or similar to the imported goods (the identical or similar goods are limited to those exported to Japan on or about the same date as the imported goods and produced in the same country as the imported goods; hereinafter the same applies in this paragraph), calculated pursuant to the provisions of the preceding paragraph or Article 4-3 (Determination of customs value on the basis of domestic selling price or cost of production), the main clause of this paragraph does not apply (the customs value of goods identical with, or similar to the imported goods is the value obtained after, pursuant to the provisions of Cabinet Order, necessary adjustment is made to any price difference between the imported goods and the identical or similar goods, arising from the differences at commercial levels, in transaction quantity or in cost of transport, etc. as set forth in the items of the preceding paragraph or from the differences in other costs or charges specified by Cabinet Order, and in the case of the customs value calculated pursuant to the provisions of the preceding paragraph, the customs value is limited to that of the goods identical with, or similar to the imported goods, traded in an import transaction between a buyer and a seller who are not related within the meaning of item (iv)):

(3)If a person entrusted (hereinafter referred to as “entrustee” in this paragraph) by another person who is in Japan (hereinafter referred to as “entrustor” in this paragraph) processes or assembles, in a foreign country, raw materials or components supplied directly or indirectly by the entrustor (hereinafter referred to as “processing, etc.” in this paragraph) and if the products obtained through the processing, etc. arrive in Japan as a consequence of transaction between that entrustor and entrustee in which the entrustor is to acquire these products, the preceding two paragraphs apply, deeming the transaction as import transaction, the entrustor as a buyer, the entrustee as a seller, the value actually paid or payable for the processing, etc. as the price actually paid or payable for the imported goods, respectively. In this case, the term “commissions (excluding those to be paid to a person who purchases on behalf of a buyer as compensation for the services associated with the purchase)” in item (ii)(a) of paragraph (1) is deemed to be replaced with “commissions”.

Article 4-2.When the customs value of imported goods cannot be calculated pursuant to the provisions of paragraph (1) of the preceding Article or when the main clause of paragraph (2) of that Article applies, if the transaction value (limited to the transaction value defined as the customs value pursuant to the provisions of paragraph (1) of the preceding Article; hereinafter the same applies in this Article) of goods identical with, or similar to the imported goods (the identical or similar goods are limited to those exported to Japan on or about the same date and produced in the same country as the imported goods; hereinafter in this Article referred to as “identical or similar goods”) is available, the customs value of the imported goods is the transaction value of the identical or similar goods (if the transaction values of both the identical and similar goods are available, the customs value of imported goods is the transaction value of the identical goods). In this case, the transaction value of the identical or similar goods is to be the transaction value of identical or similar goods to be traded for importation at the same commercial level and in substantially the same quantity as the imported goods (hereinafter in this Article referred to as “identical or similar goods at the same commercial level and in the same quantity”), and if there is a significant difference in the cost of transport, etc. to the import port between the imported goods and the identical or similar goods at the same commercial level and in the same quantity, arising from the differences in distances or modes of transport, the transaction value of the identical or similar goods is the value obtained after having made necessary adjustment, pursuant to the provisions of Cabinet Order, to the price difference arising from these significant differences.

(2)When no transaction value of identical or similar goods at the same commercial level and in the same quantity as provided for in the preceding paragraph is available, the transaction value of identical or similar goods provided for in that paragraph is the value of identical or similar goods obtained after having made necessary adjustment, pursuant to the provisions of Cabinet Order, to any price difference between the imported goods and the identical or similar goods, arising from the differences at commercial levels or in transaction quantities and the differences in the cost of transport, etc. to an import port.

Article 4-3.When the customs value of imported goods cannot be calculated pursuant to the provisions of the preceding two Articles, if the domestic selling price of the imported goods (including the domestic selling price of the imported goods withdrawn with the approval of the Director General of Customs pursuant to the provisions of paragraph (1) of Article 73 (Withdrawal of goods prior to import permission) of the Customs Act; hereinafter the same applies in this paragraph) or the domestic selling price of goods identical with, or similar to the imported goods (the identical or similar goods are limited to those produced in the same country as the imported goods; hereinafter the same applies in this paragraph) is available, the customs value of the imported goods is the value as specified in each of the following items for the category of the domestic selling prices as set forth respectively therein; provided, however, that application of item (ii) is limited to the case in which item (i) is not applicable and a person who seeks to import the goods requests the Director General of Customs to apply item (ii):

(2)When the customs value of the imported goods cannot be calculated pursuant to the provisions of the preceding paragraph, if their production cost is ascertainable (only when the imported goods arrive in Japan as a consequence of transaction of these goods between a person who seeks to import these goods and the producer of these goods; the same applies in the next paragraph), the customs value of the imported goods is the value obtained by adding to the cost of their production the usual profit and general expenses associated with sales for exportation to Japan of goods of the same class or kind produced in the country of production of the imported goods and the cost of transport, etc. of the imported goods to an import port.

(3)When the cost of production of the imported goods is ascertainable, if the Director General of Customs is requested by a person who seeks to import these goods, their customs value is, prior to applying paragraph (1), to be calculated pursuant to the provisions of the preceding paragraph.

Article 4-4.If the customs value of imported goods cannot be calculated pursuant to the provisions of the preceding three Articles, their customs value is the value which is calculated, pursuant to the provisions of Cabinet Order, as the value equivalent to the customs value calculated under these provisions.

Article 4-5.When customs value is calculated pursuant to the provisions of Article 4 through the preceding Article, if it is found, in consideration of the conditions of transaction of imported goods or other circumstances, that the imported goods have deteriorated or have been damaged by the time of import declaration (or, in the case of goods set forth in items (ii) to (viii) of paragraph (1) of Article 4 (Timing of determination for duty assessment of dutiable items) of the Customs Act, by the time as specified in these items; in the proviso to paragraph (1) of Article 10 referred to as “time of import declaration, etc.”), the customs value of the imported goods is the value obtained after deducting an amount equivalent to the depreciation in value caused by the deterioration or damage from the customs value which would be obtained had such deterioration or damage not occurred.

Article 4-6.When customs value is calculated pursuant to the provisions of Articles 4 to 4-4, if the imported goods are transported by air and if there are, among those transported by air, samples provided without compensation (limited to samples the customs value of which, if calculated on the basis of freight and insurance for air cargo, does not exceed the value to be prescribed by Cabinet Order for goods of small value), goods the importation of which is found urgently necessary for disaster relief, for maintenance of public health or for other equivalent purposes or other similar goods as may be specified by Cabinet Order, the costs of transport and insurance incurred for the transport of these goods to the import port is to be calculated on the basis of the costs of transport and insurance incurred for the transport using the usual mode of transport for these goods, other than by air.

(2)When customs value is calculated pursuant to the provisions of Articles 4 to 4-4, if the imported goods are those imported as accompanied goods by a person entering Japan or any other goods the transaction of which is found to take place at the retail level and if they are found to be those used personally by the importer of the goods, the customs value of the imported goods is the value at which they would be imported had they been imported at an ordinary wholesale level. The same applies to the case in which the imported goods are gifts to residents in Japan and are found to be used personally by the residents.

Article 4-7.When customs value is calculated pursuant to the provisions of Articles 4 to 4-6, the conversion into Japanese currency of the value indicated in a foreign currency is to be made on the basis of the foreign exchange rate applicable on the day on which import declaration of the goods concerned is made (or, in the case of calculation of customs value of goods set forth in item (i) of Article 5 (Special provisions for applicable laws and regulations) of the Customs Act, the date as prescribed in that item).

(2)The foreign exchange rate referred to in the preceding paragraph is prescribed by the Ministry of Finance Order.

Article 4-8.When customs value of imported goods is calculated pursuant to the provisions of Article 4 through the preceding Article, the value or other matters which are to be taken as a basis for the calculation shall be proved by materials demonstrating its reasonable grounds and shall also be calculated in accordance with the accounting practices generally accepted as fair and valid.

Article 4-9.In addition to what is provided for in Article 4 through the preceding Article, necessary matters concerning calculation of customs value of imported goods are prescribed by Cabinet Order.

Article 5.The benefit concerning customs duty may, pursuant to the provisions of Cabinet Order, be granted to goods imported from a country not granted the benefit prescribed in special provisions of any convention concerning customs duty (including any territory which is part of that country; hereinafter the same applies in this Article, paragraphs (1) and (2) of the next Article and paragraph (4) of Article 9), designating the country and goods, to the extent not exceeding the benefit prescribed in the special provisions.

Article 6.If it is found necessary in order to protect the interests accruing directly or indirectly to Japan under the Marrakesh Agreement Establishing the World Trade Organization (hereinafter in this Article, the next Article and Article 9 referred to as “the WTO Agreement”) or in order to achieve the objectives of the WTO Agreement, customs duty may, pursuant to the provisions of Cabinet Order, be imposed on goods exported from countries set forth in the following items or imported into Japan through any of these countries, within the scope of approval provided for in these items, designating the country and goods, in an amount equal to or less than the customs value of the designated goods, besides the customs duty levied at the rates prescribed in the Appended Table:

(2)With respect to goods exported from or through any country which treats any vessel or aircraft of Japan or any goods exported from or through Japan less favorably than any vessel or aircraft of any other country or any goods exported from or through any other country, customs duty may be levied on these goods in an amount equal to or less than the customs value of these goods pursuant to the provisions of Cabinet Order, designating the country and goods, besides the customs duty levied at the rates prescribed in the Appended Table; provided, however, that this does not apply if the matter is to be settled through the procedures of the Dispute Settlement Body provided for in item (i) of the preceding paragraph.

(3)In addition to what is provided for in the preceding two paragraphs, necessary matters concerning application of these provisions are prescribed by Cabinet Order.

Article 7.When there is the fact that goods the production or exportation of which is directly or indirectly subsidized by a foreign country are imported and these imports cause or threaten to cause material injury to a Japanese industry (limited to a Japanese industry producing the same kind of goods as the imported goods so subsidized; hereinafter the same applies in this Article) or materially retard the establishment of a Japanese industry (hereinafter in this Article referred to as “fact of material injury, etc. to a Japanese industry”), if it is found necessary in order to protect the Japanese industry, customs duty may, pursuant to the provisions of Cabinet Order, be imposed, in addition to the customs duty levied at the rates prescribed in the Appended Table, in an amount equal to or less than the amount of the subsidy (hereinafter in this Article referred to as “countervailing duty”), designating goods, exporter or producer of the goods (hereinafter in this Article and in the next Article referred to as “supplier”) or an exporting country or country of origin (including any territory which is part of that country; hereinafter in this Article and in the next Article referred to as “supplying country”) and period (limited to a period not exceeding five years), on the designated goods related to the designated supplier or supplying country (hereinafter in this Article referred to as “designated goods”) and imported during the designated period; provided, however, that this does not apply if the measure prescribed in paragraph (1) of the preceding Article (limited to the measure under item (i) of that paragraph) or other measure approved by the Dispute Settlement Body provided for in that item has been taken on the grounds of the fact of material injury, etc. to a Japanese industry caused by the imports of the subsidized goods.

(2)The term “subsidy” as used in this Article means any subsidy provided for in Article 1 of the Agreement on Subsidies and Countervailing Measures, other than the subsidy which is not subject to countervailing duty pursuant to the provisions of Article 13 of the Agreement on Agriculture in Annex 1A to the WTO Agreement or 8.1 and 8.2 of Article 8 of the Agreement on Subsidies and Countervailing Measures.

(3)In addition to the case referred to in paragraph (1), if there are, among those goods the production or exportation of which is directly or indirectly subsidized by a foreign country (in the case of goods set forth in item (iii), limited to goods the exportation of which is directly or indirectly subsidized in violation of the provisions of any relevant convention), any designated goods against which a measure prescribed in paragraph (10) has been taken (hereinafter in this paragraph referred to as “provisional measure”) and which have been imported during the period as specified in each of the following items for the category of goods as set forth respectively therein, countervailing duty may, pursuant to the provisions of Cabinet Order, be imposed on these designated goods, in addition to the customs duty levied at the rates prescribed in the Appended Table. In this case, the amount of countervailing duty which may be imposed on goods imported during the period for which the provisional measure has been taken shall not exceed the amount of security ordered to be provided pursuant to the provisions of paragraph (10):

(4)Countervailing duty referred to in the preceding paragraph is to be paid by an importer of goods for which the countervailing duty is to be imposed.

(5)A person who has an interest in the Japanese industry as provided for in paragraph (1) may, pursuant to the provisions of Cabinet Order, produce to the Government sufficient evidence for the fact of imports of subsidized goods and the fact of material injury, etc. to a Japanese industry caused by these imports and request the Government to impose countervailing duty on these goods.

(6)When a request prescribed in the preceding paragraph has been made or when there is sufficient evidence for the fact of imports of subsidized goods and the fact of material injury, etc. to a Japanese industry caused by these imports, the Government, if it is found necessary to do so, conducts an investigation to determine whether these facts actually exist.

(7)The investigation referred to in the preceding paragraph is to be concluded within one year from the day on which it is initiated; provided, however, that the period may be extended for up to a maximum period of six months if any special reason so warrants.

(8)When the investigation referred to in paragraph (6) has been initiated, the authority of the supplying country or exporter of the goods subject to the investigation may offer to the Government an undertaking as specified in each of the following items for the category of the parties concerned as set forth respectively therein (in the case of an undertaking offered under item (ii), only when the authority of the supplying country of the goods has given consent to offering of the undertaking):

(9)When the undertaking provided for in the items of the preceding paragraph has been offered, if there is sufficient evidence to presume the fact of imports of subsidized goods and the fact of material injury, etc. to a Japanese industry caused by these imports, the Government may accept the undertaking (limited to the undertaking the effective period of which does not exceed five years). When the Government has accepted the offered undertaking, it may discontinue the investigation referred to in paragraph (6) unless the authority of the supplying country of the goods subject to the undertaking wishes to have the investigation completed.

(10)If, after expiry of sixty days from the date on which the investigation referred to in paragraph (6) was initiated, there is, even before completion of the investigation, sufficient evidence (or, the best information available in the case of violation of the undertaking accepted pursuant to the provisions of the preceding paragraph) to presume the fact of imports of subsidized goods and the fact of material injury, etc. to a Japanese industry caused by these imports and if it is found necessary in order to protect the Japanese industry, the Government may, pursuant to the provisions of Cabinet Order, designating goods, a supplier or supplying country of the goods and a period (limited to a period not exceeding four months), order the person who seeks to import the goods to provide security in an amount estimated to be equivalent to that of the subsidies for the designated goods to be imported from the designated supplier or country during the designated period in order to preserve the countervailing duty to be imposed pursuant to the provisions of paragraph (3); provided, however, that this does not apply if the measure prescribed in paragraph (1) of the preceding Article (limited to the measure relating to item (i) of that paragraph) or any other measure approved by the Dispute Settlement Body provided for in that item has been taken on the grounds of the fact of material injury, etc. to a Japanese industry caused by the imports of the subsidized goods.

(11)If the Government, pursuant to the provisions of paragraph (9), has accepted the undertaking related to goods against which the measure prescribed in the preceding paragraph has been taken, the Government rescinds that measure pursuant to the provisions of Cabinet Order.

(12)When the investigation referred to in paragraph (6) has been concluded, the Government shall, except where countervailing duty is imposed pursuant to the provisions of paragraph (3), promptly release the security provided under paragraph (10). If the amount of security provided under paragraph (10) exceeds that of the countervailing duty imposed pursuant to the provisions of paragraph (3), the same applies to the excess amount of security.

(13)When countervailing duty is imposed against any supplying country designated pursuant to the provisions of paragraph (1), any supplier of the designated goods not covered by the investigation referred to in paragraph (6) or (19) (hereinafter in this Article referred to as “uninvestigated supplier”) may, pursuant to the provisions of Cabinet Order, produce to the Government sufficient evidence for the fact that the amount of countervailing duty prescribed in paragraph (1) imposed on the goods of the uninvestigated supplier is different from the amount of subsidies actually provided and request the Government to alter or abolish the countervailing duty imposed on the goods of the uninvestigated supplier.

(14)When a request prescribed in the preceding paragraph has been made or when there is sufficient evidence for the fact that the amount of countervailing duty prescribed in paragraph (1), imposed on the goods of an uninvestigated supplier is different from that of actual subsidies for the goods and it is found necessary to do so, the Government is to conduct an investigation to determine whether that fact actually exists.

(15)Paragraphs (7), (8) (excluding item (i)) and (9) apply mutatis mutandis to the case in which the investigation referred to in the preceding paragraph has been initiated. In this case, the term “within one year” in the main clause of paragraph (7) is deemed to be replaced with “promptly within one year”.

(16)When, with respect to goods of an uninvestigated supplier for which the investigation referred to in paragraph (14) has been conducted, it is found that the amount of countervailing duty prescribed in paragraph (1), imposed on these goods is different from that of subsidies actually provided, the countervailing duty imposed on the goods of the uninvestigated supplier under that paragraph may be altered or abolished pursuant to the provisions of Cabinet Order.

(17)When there are any changes in circumstances set forth in the following items with respect to the designated goods, if it is found necessary, the countervailing duty imposed under paragraph (1) may, pursuant to the provisions of Cabinet Order, be altered (including alteration of the period designated under paragraph (1); hereinafter the same applies in this paragraph and in the next paragraph) or be abolished. When the countervailing duty imposed pursuant to the provisions of paragraph (1) is altered, if it is found necessary in consideration of both of the changes in circumstances as set forth in these items, the period designated pursuant to the provisions of that paragraph may be extended:

(18)Any supplier of the designated goods or an association of such suppliers, any importer of the designated goods or an association of such importers or any person who has an interest in the Japanese industry provided for in paragraph (1) may, pursuant to the provisions of Cabinet Order, after expiry of one year from the first day of the period designated under paragraph (1), produce to the Government sufficient evidence for the changes in circumstances as set forth in item (i) or (ii) of the preceding paragraph and request the Government to alter or abolish the countervailing duty imposed pursuant to the provisions of paragraph (1).

(19)When a request prescribed in the preceding paragraph is made or otherwise when there is sufficient evidence for the changes in circumstances as set forth in item (i) or (ii) of paragraph (17), if it is found necessary to do so, the Government is to conduct an investigation to determine whether such changes in circumstances have actually occurred.

(20)The investigation referred to in the preceding paragraph is to be concluded within one year from the day on which it is initiated; provided, however, that the period may be extended to such an extent as deemed necessary if any special reason so warrants.

(21)Paragraphs (8) and (9) apply mutatis mutandis if the investigation referred to in paragraph (19) has been initiated.

(22)When countervailing duty has been imposed pursuant to the provisions of paragraph (1), if it is found that the imports of subsidized designated goods and the fact of material injury, etc. to a Japanese industry caused by these imports are likely to continue or recur after expiry of the period designated under that paragraph, the designated period may be extended pursuant to the provisions of Cabinet Order.

(23)A person who has an interest in the Japanese industry associated with designated goods as provided for in paragraph (1) may, pursuant to the provisions of Cabinet Order, no later than the day which is one year preceding the last day of the period designated under that paragraph, produce to the Government sufficient evidence for the likelihood that the imports of the subsidized goods and the fact of material injury, etc. to a Japanese industry caused by these imports will continue or recur after expiry of the designated period and request the Government to extend the designated period.

(24)When a request prescribed in the preceding paragraph has been made or otherwise when there is sufficient evidence for the likelihood that the imports of subsidized designated goods and the fact of material injury, etc. to a Japanese industry caused by these imports will continue or recur after expiry of the period designated pursuant to the provisions of paragraph (1), if it is found necessary to do so, the Government is to conduct an investigation to determine whether the likelihood actually exists.

(25)Paragraphs (8), (9) and (20) apply mutatis mutandis if the investigation referred to in the preceding paragraph has been initiated.

(26)For the purpose of application of paragraph (1), the designated goods imported during the period from the day on which the investigation referred to in paragraph (24) is initiated to the day on which it is concluded are deemed to have been imported during the period designated pursuant to the provisions of paragraph (1).

(27)When the period designated under paragraph (1) is extended pursuant to the provisions of paragraph (17) or (22), the period may be extended for up to a maximum period of five years from the day as specified in each of the following items for the category of cases as set forth respectively therein. The same applies when the extended period is further extended:

(28)Paragraphs (17) to (21) and the preceding paragraph (excluding item (ii)) apply mutatis mutandis if the undertaking accepted pursuant to the provisions of paragraph (9) is altered (including alteration of its effective period).

(29)If there is the fact that the amount of countervailing duty paid by an importer of designated goods exceeds that of the actual subsidies for the designated goods, the importer may, pursuant to the provisions of Cabinet Order, produce to the Government sufficient evidence for that fact and request the Government to refund the countervailing duty in an amount equivalent to the excess amount (referred to as “refundable amount” in the next paragraph).

(30)When a request prescribed in the preceding paragraph has been made, the Government is to investigate whether there is any refundable amount or other necessary matters and, depending on the result of the investigation, refund countervailing duty within the amount so requested or notify the person who has made the request that there are no grounds for the request, without delay.

(31)The investigation referred to in the preceding paragraph is to be concluded within one year from the day on which a request prescribed in paragraph (29) is made; provided, however, that if any special reason so warrants, the period may be extended for up to a maximum period of six months.

(32)Paragraphs (2) to (7) of Article 13 (Refund and allocation) of the Customs Act apply mutatis mutandis when countervailing duty is refunded pursuant to the provisions of paragraphs (29) to (31). In this case, the period referred to in paragraph (2) of Article 13 of that Act, which is to be taken as a basis for calculation of the interest on refund as provided for in that paragraph, commences on the day following the date on which a request for refund prescribed in paragraph (29) is made.

(33)In addition to what is provided for in the preceding paragraphs, any necessary matters concerning application of countervailing duty are prescribed by Cabinet Order.

Article 8.When there is the fact that imports of dumped goods (“dumping” means any sale of goods for export at a price less than the price for the like goods in the ordinary course of trade when destined for consumption in the exporting country or less than any other equivalent price prescribed by Cabinet Order (hereinafter in this Article referred to as “normal price”); hereinafter the same applies in this Article) cause or threaten to cause material injury to a Japanese industry (limited to a Japanese industry which produces the same kind of goods as the dumped goods; hereinafter the same applies in this Article) or materially retard the establishment of a Japanese industry (hereinafter in this Article referred to as “fact of material injury, etc. to a Japanese industry”), if it is found necessary in order to protect the Japanese industry, customs duty may, pursuant to the provisions of Cabinet Order, be imposed, in addition to the customs duty levied at the rates prescribed in the Appended Table, in an amount equal to or less than the amount equivalent to the difference between the normal price and the dumped price of the goods (hereinafter in this Article the customs duty and the difference are referred to as “anti-dumping duty” and “margins of dumping”, respectively), designating goods, a supplier or supplying country of the goods and a period (limited to a period not exceeding five years), on those designated goods which relate to the designated supplier or supplying country (hereinafter in this Article referred to as “designated goods”) and are imported during the designated period.

(2)In addition to the case referred to in the preceding paragraph, if there are, among those dumped goods, any designated goods against which a measure prescribed in paragraph (9) has been taken (hereinafter in this paragraph referred to as “provisional measure”) and which have been imported during a period as specified in each of the following items for the category of goods as set forth respectively therein, anti-dumping duty may, pursuant to the provisions of Cabinet Order, be imposed on the designated goods in addition to the customs duty levied at the rates prescribed in the Appended Table. In this case, the amount of anti-dumping duty which may be imposed on goods imported during the period for which the provisional measure has been taken is limited to up to the amount of provisional duty imposed pursuant to the provisions of item (i) of paragraph (9) or the amount of security ordered to be provided pursuant to the provisions of item (ii) of paragraph (9):

(3)Anti-dumping duty referred to in the preceding paragraph is to be paid by an importer of the goods for which anti-dumping duty is to be imposed. In this case, if provisional duty imposed pursuant to the provisions of item (i) of paragraph (9) has been paid for these goods, the anti-dumping duty is deemed to have been paid.

(4)A person who has an interest in the Japanese industry provided for in paragraph (1) may, pursuant to the provisions of Cabinet Order, produce to the Government sufficient evidence for the fact of imports of dumped goods and the fact of material injury, etc. to a Japanese industry caused by these imports and request the Government to impose anti-dumping duty on these goods.

(5)When a request prescribed in the preceding paragraph has been made or when there is sufficient evidence for the fact of dumped imports and the fact of material injury, etc. to a Japanese industry caused by the imports, if it is found necessary to do so, the Government is to investigate whether these facts actually exist.

(6)The investigation referred to in the preceding paragraph is to be concluded within one year from the day on which it is initiated; provided, however, that the period may be extended for up to a maximum period of six months if any special reason so warrants.

(7)When the investigation referred to in paragraph (5) has been initiated, an exporter of goods subject to the investigation may offer to the Government an undertaking to revise the price of the goods so that any adverse effect on the Japanese industry caused by the dumped goods is found to be eliminated or an undertaking to discontinue the exportation of these goods.

(8)When the undertaking provided for in the preceding paragraph has been offered, if there is sufficient evidence to presume the fact of dumped imports and the fact of material injury, etc. to a Japanese industry caused by the imports, the Government may accept the undertaking (limited to an undertaking the effective period of which does not exceeding five years). When the Government has accepted the offered undertaking, it may discontinue the investigation referred to in paragraph (5) unless an exporter of goods subject to the undertaking wishes to have the investigation completed.

(9)If, after expiry of sixty days from the date on which the investigation referred to in paragraph (5) was initiated, there is, even before completion of the investigation, sufficient evidence (or, the best information available, in the case of violation of the undertaking accepted pursuant to the provisions of the preceding paragraph) to presume the fact of dumped imports and the fact of material injury, etc. to a Japanese industry caused by the imports and if it is found necessary in order to protect the Japanese industry, the Government may, pursuant to the provisions of Cabinet Order, designate goods, a supplier or supplying country of the goods and a period (limited to a period not exceeding a period to be prescribed by Cabinet Order within nine months) and take against the importer of the designated goods any of the following measures with respect to these goods to be imported from the designated supplier or supplying country during the designated period:

(10)If the Government, pursuant to the provisions of paragraph (8), has accepted an undertaking for the goods against which the measure prescribed in the preceding paragraph has been taken, the Government is to rescind the measure pursuant to the provisions of Cabinet Order.

(11)If the investigation referred to in paragraph (5) has been concluded, except when anti-dumping duty is imposed pursuant to the provisions of paragraph (2), the Government shall promptly refund the provisional duty imposed under paragraph (9) or release the security provided thereunder. The same applies to the excess amount of anti-dumping duty or security when the amount of the provisional duty imposed or the amount of the security provided exceeds the amount of anti-dumping duty to be imposed pursuant to the provisions of paragraph (2).

(12)A new supplier (i.e., a new supplier herein means, when anti-dumping duty is imposed by designating a supplying country pursuant to the provisions of paragraph (1), a supplier other than a supplier who imported the designated goods into Japan during the period covered by the investigation referred to in paragraph (5) or (22) or a person having relations with the supplier of the designated goods, as specified by Cabinet Order; hereinafter the same applies in this Article) may, pursuant to the provisions of Cabinet Order, produce to the Government sufficient evidence for the fact that the amount of anti-dumping duty prescribed in paragraph (1) imposed on goods of the new supplier is different from the actual amount of margins of dumping and request the Government to alter or abolish the anti-dumping duty imposed on these goods.

(13)If a request prescribed in the preceding paragraph has been made or if it is found necessary in consideration of the sufficient evidence for the fact that the amount of anti-dumping duty prescribed in paragraph (1) imposed on goods of a new supplier is different from the actual amount of margins of dumping for the goods, the Government is to investigate whether that fact actually exists.

(14)Paragraphs (6) to (8) apply mutatis mutandis when the investigation referred to in the preceding paragraph has been initiated. In this case, the term “within one year” in the main clause of paragraph (6) is deemed to be replaced with “promptly within one year”.

(15)If the investigation referred to in paragraph (13) has been initiated, the anti-dumping duty prescribed in paragraph (1), notwithstanding the provisions of paragraph (1), is not to be imposed on goods exported or produced by a new supplier subject to the investigation and imported during the period from the day on which the investigation was initiated to the day on which it is concluded (in paragraphs (17) and (18) referred to as “within the investigation period”), and except when anti-dumping duty imposed under paragraph (1) is altered or maintained pursuant to the provisions of the next paragraph, the anti-dumping duty prescribed in paragraph (1) imposed on the goods exported or produced by the new supplier is to be abolished pursuant to the provisions of Cabinet Order from the day on which the investigation was initiated.

(16)If margins of dumping is found to exist with respect to goods of a new supplier covered by the investigation referred to in paragraph (13), anti-dumping duty imposed under paragraph (1) may, pursuant to the provisions of Cabinet Order, be altered or maintained, designating the period (limited to the period within the period from the day on which the investigation is initiated to the last day of the period designated under paragraph (1) for the anti-dumping duty covered by the investigation imposed thereunder) with respect to the goods of the new supplier, imported during a period so designated.

(17)In the case referred to in the preceding paragraph, anti-dumping duty imposed on goods imported within the investigation period shall be paid by an importer of goods on which the anti-dumping duty is to be imposed, and the amount of the anti-dumping duty shall not exceed the amount equivalent to the amount of anti-dumping duty prescribed in paragraph (1), that is, the amount not to be imposed pursuant to the provisions of paragraph (15).

(18)The Government, when it alters or maintains anti-dumping duty imposed under paragraph (1) pursuant to the provisions of paragraph (16), may order, pursuant to the provisions of Cabinet Order, a person who seeks to import, within the investigation period, goods exported or produced by a new supplier covered by the investigation referred to in paragraph (13) to provide, in order to preserve the altered or maintained anti-dumping duty prescribed in paragraph (1), imposed on goods imported within the investigation period, security in an amount equal to or less than the amount equivalent to that of anti-dumping duty prescribed in paragraph (1), that is, the amount not to be imposed on the goods pursuant to the provisions of paragraph (15).

(19)When the investigation referred to in paragraph (13) has been concluded, if the Government abolishes the anti-dumping duty imposed under paragraph (1) pursuant to the provisions of paragraph (15), the Government shall promptly release the security provided pursuant to the provisions of the preceding paragraph. The same applies to the excess amount of security when the amount of security so provided exceeds that of anti-dumping duty to be imposed under paragraph (1), as altered under paragraph (16).

(20)When there are any changes in circumstances as set forth in the following items with respect to designated goods, if it is found necessary, anti-dumping duty imposed under paragraph (1) may, pursuant to the provisions of Cabinet Order, be altered (including alteration of the period designated under paragraph (1); hereinafter the same applies in this paragraph and in the next paragraph) or be abolished. When anti-dumping duty imposed pursuant to the provisions of paragraph (1) is altered, if it is found necessary in consideration of both of the changes in circumstances as set forth in the following items, the period designated under that paragraph may be extended:

(21)Any supplier of designated goods or association of such suppliers, any importer of designated goods or association of such importers or any person who has an interest in the Japanese industry provided for in paragraph (1) may, pursuant to the provisions of Cabinet Order, after expiry of one year from the first day of the period designated under paragraph (1), produce to the Government sufficient evidence for the changes in circumstances as set forth in item (i) or (ii) of the preceding paragraph and request the Government to alter or abolish the anti-dumping duty imposed pursuant to the provision of paragraph (1).

(22)When a request prescribed in the preceding paragraph has been made or otherwise when there is sufficient evidence for the changes in circumstances as set forth in item (i) or (ii) of paragraph (20), if it is found necessary to do so, the Government is to investigate whether the changes in circumstances have actually occurred.

(23)The investigation referred to in the preceding paragraph is to be concluded within one year from the day on which it is initiated; provided, however, that the period may be extended to such an extent as deemed necessary if any special reason so warrants.

(24)Paragraphs (7) and (8) apply mutatis mutandis when the investigation referred to in paragraph (22) has been initiated.

(25)When anti-dumping duty is imposed pursuant to the provisions of paragraph (1), if it is found that dumped imports of the designated goods and the fact of material injury, etc. to a Japanese industry caused by the imports are likely to continue or recur after expiry of the period designated under that paragraph, the designated period may be extended pursuant to the provisions of Cabinet Order.

(26)A person who has an interest in the Japanese industry related to the designated goods as provided for in paragraph (1) may, pursuant to the provisions of Cabinet Order, produce, no later than the day which is one year preceding the last day of the period designated under that paragraph, to the Government sufficient evidence for the likelihood that the dumped imports of the designated goods and the fact of material injury, etc. to a Japanese industry caused by the imports will continue or recur after expiry of the designated period and request the Government to extend the designated period.

(27)When a request prescribed in the preceding paragraph has been made or otherwise when there is sufficient evidence for the likelihood that dumped imports of the designated goods and the fact of material injury, etc. to a Japanese industry caused by the imports will continue or recur after expiry of the period designated pursuant to the provisions of paragraph (1), if it is found necessary to do so, the Government is to investigate whether the likelihood actually exists.

(28)Paragraphs (7), (8) and (23) apply mutatis mutandis when the investigation referred to in the preceding paragraph has been initiated.

(29)For the purpose of application of paragraph (1), the designated goods imported during the period from the day on which the investigation referred to in paragraph (27) is initiated to the day on which it is concluded is deemed to have been imported during the period designated pursuant to the provisions of paragraph (1).

(30)When the period designated under paragraph (1) is extended pursuant to the provisions of paragraph (20) or (25), the period of extension is limited for up to a maximum period of five years from the day as specified in each of the following items for the category of cases as set forth respectively therein. The same applies when the extended period is further extended:

(31)Paragraphs (20) to (24) and the preceding paragraph (excluding item (ii)) apply mutatis mutandis to the cases where the undertaking accepted pursuant to the provisions of paragraph (8) is altered (including alteration of its effective period).

(32)If there is the fact that the amount of anti-dumping duty paid by an importer of designated goods exceeds that of actual margins of dumping of the designated goods, the importer may, pursuant to the provisions of Cabinet Order, produce to the Government sufficient evidence for that fact and request the Government to refund anti-dumping duty in an amount equivalent to the excess amount (referred to as “refundable amount” in the next paragraph).

(33)When a request prescribed in the preceding paragraph has been made, the Government is to investigate whether there is any refundable amount and other necessary matters and, depending on the result of the investigation, refunds anti-dumping duty within the amount so requested or notifies a person who has made the request that there are no grounds for the request, without delay.

(34)The investigation prescribed in the preceding paragraph is to be concluded within one year from the day on which a request prescribed in paragraph (32) is made; provided, however, that if any special reason so warrants, the period may be extended for up to a maximum period of six months.

(35)Paragraphs (2) to (7) of Article 13 (Refund and allocation) of the Customs Act apply mutatis mutandis to the cases where anti-dumping duty is refunded pursuant to the provisions of paragraphs (32) to (34). In this case, the period referred to in paragraph (2) of Article 13 of that Act which is to be taken as a basis for calculation of the additional refund amount as provided for in that paragraph commences on the day following the date on which a request for refund prescribed in paragraph (32) is made.

(36)For the purpose of application of the preceding paragraphs, if any domestic sale of goods imported by an importer associated with an exporter is made at a price less than the selling price for exportation of the goods and the normal price thereof, the domestic sale is deemed to be dumped imports.

(37)In addition to what is provided for in the preceding paragraphs, any necessary matters concerning application of anti-dumping duty are prescribed by Cabinet Order.

Article 9.When, as a result of a decline in the overseas price of a specific kind of goods or of any other unforeseen development of circumstances, there is the fact of an increase in imports of these goods (including an increase in the share of such imports in the total domestic production in Japan) (hereinafter in this Article referred to as “fact of increased imports of specified goods”) and when there is the fact that the imports of these goods cause or threaten to cause serious injury to a Japanese industry involved in the production of goods which are of the same kind as these imported goods or compete directly with these imported goods in their uses (hereinafter in this Article referred to as “fact of serious injury, etc. to a Japanese industry”), if it is found urgently necessary for the national economy, the following measures may, pursuant to the provisions of Cabinet Order, be taken, designating goods and a period (limited to a period within four years, inclusive of the period designated under paragraph (8)); provided, however, that if there are, among goods to be designated, goods the origin of which is a developing country Member of the World Trade Organization and the share of imports from that developing country in the total imports of the goods in Japan is small (hereinafter in this paragraph and in paragraph (8) referred to as “goods imported from a developing country in small quantities”), the goods imported from a developing country in small quantities are excluded from those to be designated:

(2)When the measure prescribed in the preceding paragraph is taken, if a period to be designated pursuant to the provisions of that paragraph exceeds one year, the measure shall be progressively liberalized at regular intervals during the period to be so designated.

(3)When the measure prescribed in item (ii) of paragraph (1) or any other measure prescribed in Article XIX :1 of the General Agreement or in the Safeguard Agreement is to be taken or has been taken with respect to specified goods, tariff concessions on goods other than the specified goods may be modified or tariff concessions may be newly granted for goods which are not subject to tariff concessions, pursuant to the provisions of Cabinet Order, through the consultations based on Article XIX:2 (Procedures for emergency action) of the General Agreement and the Safeguard Agreement, and the rate of customs duty so modified or newly granted may be applied.

(4)When any foreign country has withdrawn or has modified tariff concessions or has taken other measure with respect to specified goods under Article XIX:1 of the General Agreement and the Safeguard Agreement (hereinafter in this paragraph and in the next paragraph referred to as “emergency measure of a foreign country”), if it is found that there are circumstances provided for in Article XIX:3 (a) (Measures against emergency action) of the General Agreement and in the Safeguard Agreement or in Article XIX:3(b) (Measures against emergency action in urgent situation) of the General Agreement, the following measures may, pursuant to the provisions of Cabinet Order, be taken with respect to imported goods, by designating goods (when a measure is taken under Article XIX:3(a) of the General Agreement and the Safeguard Agreement, a country and goods); provided, however, that this does not apply to the measure taken under Article XIX:3(a) of the General Agreement and the Safeguard Agreement if the emergency measure of that foreign country has been taken under the Safeguard Agreement on the basis of the fact of increased imports of the specified goods in that country and three years have not elapsed from the day on which the emergency measure was taken by that country:

(5)The measures prescribed in paragraph (3) or the preceding paragraph shall be taken to the extent that the effects of any of the measures will not exceed the level necessary to compensate for the measure prescribed in item (ii) of paragraph (1) or for any other measure prescribed in Article XIX:1 of the General Agreement and the Safeguard Agreement or the level required as a countermeasure against the emergency measure of a foreign country and shall also be taken with due consideration so that the effect of the measures on its national economy will be minimized to the extent possible.

(6)When there is sufficient evidence for the fact of increased imports of specified goods and the fact of serious injury, etc. to a Japanese industry caused by the imports, if it is found necessary to do so, the Government is to investigate whether these facts actually exist.

(7)The investigation referred to in the preceding paragraph is to be concluded within one year from the day on which it is initiated; provided, however, that the period may be extended to such an extent as deemed necessary if any special reason so warrants.

(8)When the investigation referred to in paragraph (6) has been initiated, if there is, even before completion of the investigation, sufficient evidence to presume the fact of increased imports of specified goods and the fact of serious injury, etc. to a Japanese industry caused by the imports and it is found urgently necessary for the national economy, the Government may, pursuant to the provisions of Cabinet Order, take the following measures, designating goods and a period (limited to a period within two hundred days); provided, however, that if goods to be designated include products imported from a developing country in small quantities, the country’s products imported in small quantity are excluded from those to be designated:

(9)When the investigation referred to in paragraph (6) has been concluded, the Government shall, except when the measure prescribed in paragraph (1) is taken, promptly refund customs duty imposed pursuant to the provisions of the preceding paragraph. The same applies to the amount of customs duty imposed under the preceding paragraph in excess of the amount of customs duty which would be levied had customs duty been imposed pursuant to the provisions of paragraph (1) on those goods designated under the preceding paragraph, imported during the period in which the measure prescribed in the preceding paragraph was taken.

(10)When the measure provided for in paragraph (1) has been taken, if it is found that the fact of serious injury, etc. to a Japanese industry caused by increased imports of the goods designated under that paragraph will continue even after expiry of the period designated under that paragraph and if it is found that the Japanese industry provided for in that paragraph is in the process of structural adjustment, then the period may, pursuant to the provisions of Cabinet Order, be extended for up to a maximum period of eight years, inclusive of the period designated under paragraph (8). In this case, the measure prescribed in paragraph (1), taken during the period so extended shall be less import-restrictive than the measure prescribed in that paragraph, taken during the period preceding the extended period.

(11)Paragraphs (6) and (7) apply mutatis mutandis when the period designated under paragraph (1) is extended pursuant to the provisions of the preceding paragraph.

(12)If the period designated under paragraph (1) exceeds three years, the Government is to review the situation during the first half of the period with a view to withdrawing the measure prescribed in that paragraph or increasing the pace of liberalization of the measure.

(13)With respect to goods against which the measure prescribed in item (i) or (ii) of paragraph (1) or other measure prescribed in Article XIX:1 of the General Agreement and the Safeguard Agreement (hereinafter in this paragraph referred to as “emergency measure”) has been taken, the measures prescribed in paragraph (1) or (8) may be taken only after a period equivalent to the period during which the measure was taken or a period of two years, whichever is longer, has elapsed from the day on which the measure ceased to be taken; provided, however, that this does not apply if the measure to be taken is effective for a period of up to one hundred and eighty days (hereinafter in this paragraph referred to as “short-term measure”) and falls under both of the following items:

(14)If the measure prescribed in paragraph (1), (3) or (4) has been taken, the Cabinet shall report the details of the measure to the Diet without delay.

(15)In addition to what is provided for in the preceding paragraphs, other necessary matters concerning application of these provisions are prescribed by Cabinet Order.

Article 9-2.With respect to goods specified by Cabinet Order for which the rate of duty is prescribed in the Appended Table as the rate of duty applicable within a limit of a certain quantity, the rate of duty so prescribed is applied, within that limit, to these goods which are imported by a person within a quantity of quota allocated to that person by the Government on the basis of the actual quantity used, the anticipated quantity to be used, while giving due consideration to the national economy.

(2)Necessary matters concerning the method of allocating, and the procedures for receiving the quota referred to in the preceding paragraph and other necessary matters concerning application of that paragraph are prescribed by Cabinet Order.

Article 10.If any imported goods have deteriorated or have been damaged prior to their import permission (or, prior to approval in the case of goods the withdrawal of which has been approved pursuant to the provisions of paragraph (1) of Article 73 (Withdrawal of goods prior to import permission) of the Customs Act), customs duty levied on these goods may, pursuant to the provisions of Cabinet Order, be reduced on the basis of the rate of depreciation in value caused by the deterioration or damage or be reduced within the amount of the difference between the amount of customs duty which would be levied had these goods not deteriorated or not been damaged and the amount of customs duty determined on the basis of the nature and quantity of the goods so deteriorated or damaged; provided, however, that reduction of customs duty on the basis of the rate of depreciation in value (excluding reduction of customs duty levied on the basis of quantity) does not apply if imported goods have deteriorated or have been damaged by the time of import declaration, etc.

(2)If goods the importation of which has been permitted have been destroyed or lost, have deteriorated or have been damaged due to a disaster or for other unavoidable cause while they have been stored, after their import permission, in a customs area or in other area designated by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Foreign goods stored, with permission, in areas other than customs areas) of the Customs Act (referred to as “customs area, etc.” in paragraph (4)), customs duty may wholly or partly be refunded pursuant to the provisions of Cabinet Order.

(3)When customs duty has not been paid for goods for which the time limit for payment of that customs duty has been extended pursuant to the provisions of paragraphs (1) to (3) of Article 9-2 (Extension of time limit for payment) of the Customs Act, if the customs duty is refundable when the preceding paragraph applies as if the customs duty on these goods were paid, then the amount equivalent to that of the refundable customs duty may, pursuant to the provisions of Cabinet Order, be deducted, only during the extended period, from the amount of customs duty for which time limit for payment has been extended. In this case, the provisions of that Act applies as if customs duty in an amount equivalent to the deducted amount had been refunded under the preceding paragraph.

(4)If specially declared goods (i.e., the specially declared goods provided for in paragraph (2) of Article 7-2 (Special provisions for declaration) of the Customs Act; hereinafter the same applies) remain in a customs area, etc. after import permission has been given and if these goods have been destroyed or lost, have deteriorated or have been damaged due to a disaster or for other unavoidable cause before a written special declaration (i.e., a written special declaration provided for in paragraph (1) of that Article; hereinafter the same applies) for these goods is filed, the amount equivalent to the whole or part of customs duty may, pursuant to the provisions of Cabinet Order, be deducted from the amount of customs duty to be levied on these goods, provided that the written special declaration is filed within the period for filing.

Article 11.With respect to goods exported from Japan for processing (limited to processing found difficult to be undertaken in Japan) or repair and subsequently imported into Japan within one year from the date of their export permission (or, when there is any unavoidable reason for longer period than one year, if the longer period is approved by the Director General of Customs pursuant to the provisions of Cabinet Order, then within the longer period than one year as designated by the Director General of Customs), customs duty to be levied on these goods may, pursuant to the provisions of Cabinet Order, be reduced within the limit of the amount calculated by multiplying the amount of customs duty to be levied on these imported goods by the proportion of the customs value of these imported goods had they been imported in the nature and shape at the time of export permission to the customs value of these imported goods.

Article 12.If imported rice, hulled or unhulled, barley or wheat falls under any of the following cases, customs duty on these goods may be reduced or exempted by designating goods and a period pursuant to the provisions of Cabinet Order:

(2)When import prices of foodstuffs, apparels and other goods closely related to the people’s daily lives (excluding those goods specified in the preceding paragraph) are sharply rising or threatening to rise and any urgent action is needed for stabilizing the people’s daily lives, customs duty to be levied thereon may be reduced or exempted by designating goods and a period pursuant to the provisions of Cabinet Order, unless it is found that the imports of these goods are likely to cause substantial injury to the Japanese industry producing goods identical or directly competing in their use with these imported goods.

Article 13.With respect to imported raw materials set forth in the following items, customs duty to be levied thereon is reduced or exempted pursuant to the provisions of Cabinet Order if the manufacture set forth in these items is completed within one year from the date of their import permission at a manufacturing factory approved by the Director General of Customs:

(2)If the Director General of Customs finds that there is no difficulty in ensuring implementation of this Act or the Customs Act, the Director General of Customs shall give the approval referred to in the preceding paragraph.

(3)When customs duty is reduced or exempted pursuant to the provisions of paragraph (1), the Director General of Customs may require security to be provided in an amount equivalent to that of customs duty so reduced or exempted.

(4)When conducting the manufacture set forth in the items of paragraph (1), raw materials for which customs duty has been reduced or exempted pursuant to the provisions of paragraph (1) (hereinafter in this Article referred to as “raw materials for manufacture”) shall not be used in combination with other raw materials of the same kind unless the Director General of Customs finds that there is no difficulty in confirming manufacture from the raw materials for manufacture and hence approves the combined use with the other raw materials.

(5)If manufacture from raw materials for manufacture has been completed, the manufacturer shall, pursuant to the provisions of Cabinet Order, notify the customs of the quantities of raw materials used and the quantities of products manufactured therefrom, and shall have the products inspected by the customs each time the notification is made or whenever necessary.

(6)The raw materials for manufacture set forth in the items of paragraph (1) shall not be used, within one year from the date of their import permission, for purposes other than for those set forth in these items or be transferred for use for purposes other than for those set forth in these items; provided, however, that this does not apply when approval of the Director General of Customs is given pursuant to the provisions of Cabinet Order due to any unavoidable cause.

(7)If any of the situations set forth in the following items occurs, customs duty reduced or exempted pursuant to the provisions of paragraph (1) is immediately collected from a person involved in any of the situations; provided, however, that if raw materials for manufacture or products manufactured therefrom were lost due to a disaster or for other unavoidable cause or were destroyed with the approval of the Director General of Customs, customs duty so reduced or exempted is not collected, and if raw materials for manufacture for which the approval referred to in the proviso to the preceding paragraph has been given have depreciated in value due to deterioration or damage or for other unavoidable cause, customs duty to be levied on the raw materials may be reduced pursuant to the provisions of paragraph (1) of Article 10:

(8)A person who has obtained the approval of a manufacturing factory under paragraph (1) shall, pursuant to the provisions of Cabinet Order, pay to the customs service fee the amount of which is to be specified by Cabinet Order on the basis of the total floor space of the manufacturing factory, the period of approval and the type of customs services to be provided to that factory.

Article 14.The imported goods set forth in the following are exempted from customs duty pursuant to the provisions of Cabinet Order:

Article 14-2.If the amount of customs duty to be levied on imported goods set forth in the following items exceeds the amount of customs duty set forth therein, customs duty is reduced in an amount equivalent to the excess amount pursuant to the provisions of Cabinet Order:

Article 14-3.Marine products taken abroad by a Japanese vessel which left Japan for fishing and products obtained by processing of, or manufacturing from these marine products on board the Japanese vessel, if they are imported into Japan, are exempted from customs duty pursuant to the provisions of Cabinet Order.

(2)With respect to imported products which have been obtained on board a Japanese vessel which left Japan for fishing by processing of, or manufacturing from marine products taken by any foreign vessel and which are prescribed by Cabinet Order, customs duty on these imported products may, pursuant to the provisions of Cabinet Order, be reduced within the amount corresponding to the difference between the amount of customs duty to be levied on these imported products and the amount of customs duty which would be levied on the marine products had they been imported in the same nature and quantity as those of the marine products not having undergone the processing or manufacture.

Article 15.If the imported goods set forth in the following items are not used for purposes other than for those specified in these items within two years from the date of their import permission, customs duty on these goods are exempted pursuant to the provisions of Cabinet Order:

(2)If goods exempted from customs duty pursuant to the provisions of the items of the preceding paragraph are used or transferred for use for purposes other than for those set forth in these items within two years from the date of their import permission, customs duty exempted pursuant to the provisions of that paragraph is immediately collected from a person who has used or transferred these goods for purposes other than for those specified; provided, however, that if, due to deterioration or damage or for other unavoidable cause, these goods are used for purposes other than for those set forth in these items, customs duty may be reduced pursuant to the provisions of paragraph (1) of Article 10.

Article 16.The imported goods set forth in the following items are exempted from customs duty pursuant to the provisions of Cabinet Order:

(2)When articles exempted from customs duty pursuant to the provisions of the preceding paragraph and designated by Cabinet Order are used, within two years from the date of their import permission, for purposes other than for those prescribed in that paragraph (excluding if they are used, due to any unavoidable circumstances prescribed by Cabinet Order, for purposes other than for those prescribed in that paragraph), customs duty exempted pursuant to the provisions of that paragraph is immediately collected from a person who has provided the articles for use for other purposes; provided, however, that if they have depreciated due to decrease in value caused by their use or for other cause, customs duty may be reduced pursuant to the provisions of paragraph (1) of Article 10.

Article 17.The imported goods set forth in the following items are exempted from customs duty pursuant to the provisions of Cabinet Order if they are exported within one year from the date of their import permission (with respect to goods set forth in item (xi), within a period prescribed by Cabinet Order, or with respect to goods to which the Director General of Customs gives, pursuant to the provisions of Cabinet Order, approval to extend the period for any unavoidable reason, within a period longer than one year, to be designated by the Director General of Customs):

(2)Paragraph (3) of Article 13 applies mutatis mutandis when customs duty is exempted pursuant to the provisions of the preceding paragraph.

(3)If a person who has been granted duty exemption pursuant to the provisions of paragraph (1) has exported the duty-exempt goods within the period referred to in that paragraph, the person shall, pursuant to the provisions of Cabinet Order, notify the customs of that fact.

(4)If goods for which customs duty has been exempted pursuant to the provisions of paragraph (1) have not been exported within the period referred to in that paragraph or have been used for purposes other than for those set forth in the items of that paragraph, customs duty exempted pursuant to the provisions of that paragraph is immediately collected.

(5)The proviso to paragraph (7) of Article 13 applies mutatis mutandis when customs duty is collected pursuant to the provisions of the preceding paragraph. In this case, the terms “raw materials for manufacture or products manufactured therefrom” and “raw materials for manufacture, for which the approval referred to in the proviso to the preceding paragraph has been given,” in the proviso to paragraph (7) of that Article are deemed to be replaced with “these goods”.

Article 18.With respect to goods which can be used for a long period and are imported into Japan for temporary use, normally based on a lease contract or in connection with implementation of a contract for work and which are specified by Cabinet Order, customs duty levied thereon may, pursuant to the provisions of Cabinet Order, be reduced if they are exported within two years from the date of their import permission (or, with respect to goods which can be used for a particularly longer period and are specified by Cabinet Order, within the period to be specified by Cabinet Order within five years; hereinafter the same applies in paragraph (3)).

(2)When customs duty is reduced pursuant to the provisions of the preceding paragraph, the Director General of Customs may require security to be provided in an amount equivalent to the amount of customs duty so reduced.

(3)When goods for which customs duty has been reduced pursuant to the provisions of paragraph (1) are not to be exported within two years from the date of their import permission, customs duty reduced pursuant to the provisions of that paragraph is immediately collected. In this case, paragraph (5) of the preceding Article applies mutatis mutandis.

(4)Paragraph (3) of the preceding Article applies mutatis mutandis to a person for whom customs duty has been reduced pursuant to the provisions of paragraph (1).

Article 19.With respect to imported raw materials used for manufacture of export products and specified by Cabinet Order, customs duty levied thereon is reduced, exempted or wholly or partly refunded pursuant to the provisions of Cabinet Order if the manufacture is performed at a manufacturing factory approved by the Director General of Customs and the products so manufactured are exported. In this case, reduction of, or exemption from customs duty is granted on condition that these products are exported within two years from the date of import permission of the raw materials (or, with respect to products manufactured pursuant to the provisions of paragraph (3), within the period designated by the Director General of Customs within one year).

(2)Paragraphs (2) to (6) and (8) of Article 13 apply mutatis mutandis when customs duty is reduced or exempted pursuant to the provisions of the preceding paragraph. In this case, the main clause of paragraph (6) of Article 13 is deemed to be replaced with “Raw materials for which customs duty has been reduced or exempted pursuant to the provisions of paragraph (1) of Article 19 or products manufactured therefrom shall not be used or transferred for use for purposes other than for those provided for in paragraph (1) of that Article, or be used or transferred for use for purposes other than for exportation, within two years from the date of import permission of the raw materials (or, with respect to goods manufactured pursuant to the provisions of paragraph (3) of that Article, within the period designated by the Director General of Customs within one year)”.

(3)When, with the approval of the Director General of Customs given pursuant to the provisions of paragraph (4) of Article 13, as applied mutatis mutandis pursuant to the preceding paragraph, products are manufactured from raw materials for which customs duty has been reduced or exempted pursuant to the provisions of paragraph (1) (hereinafter in this Article referred to as “raw materials for manufacture of export products”) in combination with other raw materials of the same kind, and the products so manufactured are of the same quality as those manufactured solely from raw materials for manufacture of export products, if the products are exported within the period designated by the Director General of Customs within one year from the date of import permission of the raw materials for manufacture of export products, the quantity of the raw materials for manufacture of export products necessary for manufacture of the export products is deemed, pursuant to the provisions of Cabinet Order, to have been used for manufacture of the export products within the limit of quantity of the raw materials for manufacture of export products.

(4)If situations fall under one of the following items, customs duty reduced or exempted pursuant to the provisions of paragraph (1) is immediately collected from a person who is involved in that situation. In this case, the proviso to paragraph (7) of Article 13 applies mutatis mutandis:

(5)With respect to raw materials prescribed by Cabinet Order under paragraph (1), for which the time limit for payment of customs duty has been extended pursuant to the provisions of paragraphs (1) to (3) of Article 9-2 (Extension of time limit for payment) of the Customs Act and for which customs duty has not been paid, if customs duty would be refundable when paragraph (1) applies as if customs duty on the raw materials were paid, then the amount equivalent to that of the refundable customs duty is reduced, pursuant to the provisions of Cabinet Order, only within the period so extended, from the amount of customs duty for which the time limit for payment has been extended. In this case, the proviso to item (x) of Article 14 (including the cases where applied mutatis mutandis pursuant to items (xi) and (xiv) of that Article; the same applies in paragraph (3) of the next Article, paragraph (2) of Article 19-3 and paragraph (3) of Article 20), item (ii) of Article 14-2 and the provisions of that Act apply as if customs duty in an amount equivalent to the amount so reduced had been refunded under paragraph (1).

(6)With respect to specially declared goods which are raw materials prescribed by Cabinet Order and are intended to be used as raw materials for manufacture of export products, if the goods are used at a manufacturing factory approved by the Director General of Customs and products so manufactured are exported, the amount equivalent to the whole or part of the amount of customs duty thereon is deducted from the amount of customs duty to be levied on the raw materials pursuant to the provisions of Cabinet Order, provided that the products are exported before a written special declaration for the raw materials is filed and that the declaration is filed within the period for filing.

(7)For the purpose of application of the provisions concerning refund of customs duty provided for in paragraph (1), exportation referred to in that paragraph includes reshipment to a foreign country of any foreign products manufactured from the raw materials referred to in that paragraph in combination with foreign goods used as raw materials for operations under customs procedures.

(8)The preceding paragraph applies mutatis mutandis where paragraph (5) or (6) applies. In this case, the term “For the purpose of application of the provisions concerning refund of customs duty provided for in paragraph (1), exportation referred to in that paragraph” in the preceding paragraph is deemed to be replaced with “Exportation referred to in the preceding paragraph”.

Article 19-2.When any offer has been made from abroad to purchase products manufactured at a customs factory or at an integrated customs area, if the Director General of Customs, pursuant to the provisions of Cabinet Order, has confirmed the difficulty of manufacturing the products from foreign raw materials used at the customs factory or integrated customs area and of sending these products to the foreign country concerned no later than the delivery date associated with the purchase offer and if the products manufactured at the customs factory or integrated customs area from other raw materials, which are of the same kind as the foreign raw materials, but are not foreign goods (with respect to products prescribed by Cabinet Order, those manufactured from raw materials which are not the foreign goods) have been sent to the foreign country instead, then customs duty is exempted, pursuant to the provisions of Cabinet Order, from foreign goods which are of the same kind as the raw materials and are imported, within six months from the date of export permission of the products (including permission of reshipment; the same applies in the next paragraph), by a person who has manufactured the products, within the limit of quantity confirmed by the Director General of Customs as the quantity of the raw materials used for manufacture of the products (where any other goods are simultaneously manufactured in the process of manufacturing the products, the quantity of the raw materials prescribed by Cabinet Order as the quantity corresponding to the products).

(2)When it is necessary to use duty-paid imported goods as raw materials for manufacture of export products for operations under customs procedures at a customs factory or at an integrated customs area for the reason that foreign goods which were intended to be used as raw materials for the products have been used up or on other grounds, and when recourse to the preceding paragraph is found difficult, customs duty paid for the imported goods may, pursuant to the provisions of Cabinet Order, be wholly or partly refunded, provided that the imported goods, with prior approval of the Director General of Customs, are brought into the factory or area, without any change in the nature and shape in which they were imported, within three months from the date of their import permission and the products manufactured from the imported goods are exported.

(3)With respect to goods for which time limit for payment of customs duty has been extended pursuant to the provisions of paragraphs (1) to (3) of Article 9-2 (Extension of time limit for payment) of the Customs Act and for which customs duty has not been paid, if customs duty would be refundable when the preceding paragraph applies as if customs duty on these goods were paid, then the amount equivalent to that of the refundable customs duty may, pursuant to the provisions of Cabinet Order, only within the period so extended, be reduced from the amount of customs duty for which time limit for payment has been extended. In this case, the proviso to item (x) of Article 14, item (ii) of Article 14-2 and the provisions of that Act apply as if customs duty in an amount equivalent to the amount so reduced had been refunded under the preceding paragraph.

(4)When it is necessary to use imported goods as raw materials for manufacture of export products for operations under customs procedures at a customs factory or at an integrated customs area for the reason that foreign goods to be used as raw materials for the products have been used up or on other grounds and when the imported goods are specially declared goods and recourse to paragraph (1) is found difficult, an amount equivalent to the whole or part of customs duty on these goods may, pursuant to the provisions of Cabinet Order, be deducted from the amount of customs duty to be levied on these goods, provided that they are brought, with prior approval of the Director General of Customs, into the customs factory or integrated customs area without any change in the nature and shape in which they were imported, before the written special declaration for the goods is filed and the products manufactured therefrom are exported before filing of the written special declaration and that the written special declaration is filed within the period for filing.

(5)Article 58 (Notification of operations under customs procedures) and Article 61-3 (Obligation of records keeping for customs factory) of the Customs Act apply mutatis mutandis to goods brought into a customs factory under the preceding three paragraphs, and Article 34-2 (Obligation of records keeping) of that Act applies mutatis mutandis to goods brought into an integrated customs area under the preceding three paragraphs.

Article 19-3.When the Director General of Customs, pursuant to the provisions of Cabinet Order, has been notified at the time of importation that goods imported with payment of customs duty are sought to be re-exported under this paragraph, if the goods are re-exported from Japan in the nature and shape in which they were imported, the customs duty paid may, pursuant to the provisions of Cabinet Order, be refunded, provided that they are re-exported within one year from the date of their import permission (where there are any grounds to believe that the period exceeding one year is unavoidable, if approval is given by the Director General of Customs pursuant to the provisions of Cabinet Order, they may be re-exported within the longer period than one year as designated by the Director General of Customs).

(2)With respect to goods for which time limit for payment of customs duty has been extended pursuant to the provisions of paragraphs (1) to (3) of Article 9-2 (Extension of time limit for payment) of the Customs Act and for which customs duty has not been paid, if customs duty would be refundable when the preceding paragraph applies as if customs duty on these goods were paid, then the amount equivalent to that of the refundable customs duty may, pursuant to the provisions of Cabinet Order, only within the period so extended, be refunded from the amount of customs duty for which time limit for payment has been extended. In this case, the proviso to item (x) of Article 14 and the provisions of that Act apply as if customs duty in an amount equivalent to the amount so reduced had been refunded under the preceding paragraph.

(3)When the Director General of Customs, pursuant to the provisions of Cabinet Order, has been notified at the time of importation of specially declared goods that the goods are sought to be re-exported under this paragraph, if, before filing a written special declaration of the goods, they are re-exported from Japan in the nature and shape in which they were imported, an amount equivalent to the amount of customs duty to be levied on the goods may, pursuant to the provisions of Cabinet Order, be deducted from the amount of customs duty to be levied on these goods, provided that the written special declaration is filed within the period for filing.

Article 20.When duty-paid imported goods which fall under any of the following items are re-exported (in the case of goods set forth in item (i) or (ii), limited to re-exportation for return) from Japan in the nature and shape in which they were imported, customs duty levied on these goods may, pursuant to the provisions of Cabinet Order, be refunded if they are brought into a customs area (including a place designated by the Director General of Customs under item (ii) of paragraph (1) of Article 30 (Restrictions on places for storage of foreign goods) of the Customs Act; the same applies in paragraphs (2), (4) and (5)) within six months from the date of their import permission (when it is found that there is unavoidable reason for justifying a period longer than six months and approval is given by the Director General of Customs pursuant to the provisions of Cabinet Order, the period may be extended beyond six months, but not exceeding the period designated by the Director General of Customs within one year; the same applies in the next paragraph):

(2)When it is found unavoidable to dispose of the imported goods provided for in the preceding paragraph instead of re-exporting them, if they are brought into a customs area within six months from the date of their import permission and are disposed of with prior approval of the Director General of Customs, the customs duty paid may, pursuant to the provisions of Cabinet Order, be wholly or partly refunded.

(3)With respect to goods for which time limit for payment of customs duty has been extended pursuant to the provisions of paragraphs (1) to (3) of Article 9-2 (Extension of time limit for payment) of the Customs Act and for which customs duty has not been paid, if customs duty would be refundable when the preceding two paragraphs apply as if customs duty for these goods were paid, then the amount equivalent to that of the refundable customs duty may, pursuant to the provisions of Cabinet Order, only within the period so extended, be reduced from the amount of customs duty for which time limit for payment has been extended. In this case, the proviso to item (x) of Article 14 and the provisions of that Act apply as if customs duty in an amount equivalent to the amount so reduced had been refunded under the preceding two paragraphs.

(4)When specially declared goods which fall under any of the items of paragraph (1) are re-exported from Japan in the nature and shape in which they were imported (in the case of goods set forth in item (i) or (ii) of that paragraph, limited to re-exportation for return), if they are brought into a customs area before a written special declaration for these goods is filed and are re-exported before the written special declaration is filed, an amount equivalent to the amount of customs duty thereon may, pursuant to the provisions of Cabinet Order, be deducted from the amount of customs duty to be levied on these goods, provided that the written special declaration is filed within the period for filing.

(5)When it is found unavoidable to dispose of specially declared goods provided for in the preceding paragraph instead of re-exporting them, if, before filing a written special declaration for these goods, they are brought into a customs area and are disposed of, with prior approval of the Director General of Customs, before filing the written special declaration, an amount equivalent to the whole or part of customs duty thereon may, pursuant to the provisions of Cabinet Order, be deducted from the amount of customs duty to be levied, provided that the written special declaration is filed within the period for filing.

Article 20-2.With respect to goods prescribed by Cabinet Order for which the rates of duty are established on condition that they are used for specific purposes as prescribed in the Appended Table, a person who seeks application of the rates of duty (only when the rates of duty are lower than the rates of duty to be applied if there is no such condition; hereinafter referred to as “reduced rates of duty”) shall follow the procedures prescribed by Cabinet Order.

(2)Goods to which the reduced rates of duty referred to in the preceding paragraph have been applied shall not be used or be transferred for use, within two years from the date of their import permission, for purposes other than for those for which the reduced rates of duty have been granted; provided, however, that this does not apply if approval of the Director General of Customs, pursuant to the provisions of Cabinet Order, is given for any unavoidable reason.

(3)If the approval referred to in the proviso to the preceding paragraph has been given for goods to which the reduced rates of duty referred to in paragraph (1) have been granted or if the goods, without the approval, are used or transferred for use for purposes other than for those for which the reduced rates of duty have been granted, customs duty in an amount equivalent to the difference between the amount of customs duty calculated on the basis of the rates of customs duty to be applied when there is no condition for using the goods for any specific purposes and the amount of customs duty calculated on the basis of the reduced rates of duty is immediately collected from a person falling under these cases. In this case, the proviso to paragraph (7) of Article 13 applies mutatis mutandis.

Article 20-3.When goods to which reduction of, exemption from or reduced rates of customs duty have been granted pursuant to the provisions of paragraph (1) of Article 13, paragraph (1) of Article 15, paragraph (1) of Article 16, paragraph (1) of Article 17, paragraph (1) of Article 19 or paragraph (1) of the preceding Article, are used or are transferred for use, for purposes other than for those for which the reduction, exemption or reduced rates of duty have been granted, if a person who seeks to use or to transfer the goods for such purposes obtains from the Director General of Customs approval when the approval is necessary for such use or transfer and if the person (if the goods are transferred for such purposes, a person to whom the goods are transferred) obtains, pursuant to the provisions of Cabinet Order, confirmation of the Director General of Customs that the use of the goods for such purposes falls under the cases designated by Cabinet Order as meeting the condition for duty-reduction or duty-exemption as provided for in any laws concerning the reduction of, or exemption from customs duty (referred to as “reduction or exemption provision” in the next paragraph), customs duty to be collected pursuant to the provisions of these provisions, notwithstanding the provisions of paragraph (7) of Article 13, paragraph (2) of Article 15, paragraph (2) of Article 16, paragraph (4) of Article 17, paragraph (4) of Article 19 or paragraph (3) of the preceding Article, is not collected.

(2)When the confirmation of the Director General of Customs provided for in the preceding paragraph has been given, the provisions of this Act, the Customs Act and other laws concerning customs duty apply, deeming the goods so confirmed as those goods the import permission of which has, at the time of the confirmation, been given under the reduction or exemption provision concerning the use so confirmed, and also deeming the person who has been given the confirmation as the person who imports the goods under the reduction or exemption provision.

Article 21.For the purpose of application of this Act, the territory of Japan to be prescribed by Cabinet Order is deemed to be a foreign country until otherwise provided for by law.