Temporary Tariff Measures Act

(Purpose)

Article 1.This Act provides for temporary exceptions to the Customs Tariff Act (Act No. 54 of 1910) and the Customs Act (Act No. 61 of 1954) by making necessary adjustment to the rates of customs duty applicable to goods for the purpose of contributing to the sound development of the national economy.

(Temporary rates of customs duty)

Article 2.The rates of customs duty to be levied on the goods set forth in Annexed Table 1 and imported on or before March 31, 2017 shall be as prescribed in that Table.
(2)The rates of customs duty to be levied on the goods set forth in Annexed Table 1-3 and imported on or before March 31, 2017, shall be as specified respectively in that Table for the category of goods imported within the period of time specified in that Table.

Article 3.(Deleted)

(Exemption from customs duty on aircraft parts, etc.)

Article 4.Goods set forth in the following, if they are deemed to be difficult to be manufactured in Japan and if they are specified by Cabinet Order, shall, pursuant to the provision of Cabinet Order, be exempted from customs duty, provided that they are imported on or before March 31, 2017:
(i)parts used for aircraft;
(ii)materials used for manufacture of aircraft and parts thereof at a manufacturing factory approved by the Director General of Customs;
(iii)artificial satellites, rockets for launching artificial satellites, appliances and instruments used for launching and tracking such satellites or rockets and any other goods used for space development;
(iv)materials used for manufacture of goods set forth in the preceding item at a manufacturing factory approved by the Director General of Customs.

Articles 5(Deleted)

Articles 6(Deleted)

Articles 7(Deleted)

Articles 7-2(Deleted)

(Special emergency customs duty where import quantity exceeds threshold import quantity)

Article 7-3.In cases where, during each of the fiscal years from 1995 to 2016, the total import quantity of goods set forth in Annexed Table 1-6, which is obtained by adding up, under each of the columns of that Table, the quantity of such goods imported during the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance (hereinafter the quantity so notified is referred to as “threshold import quantity” in this Article and in the said Annexed Table), the rate of customs duty to be levied on such goods imported during the period from the first day of the second month following the month during which the import quantity exceeds the threshold import quantity (the first day herein is referred to as “trigger day” in this Article) to the last day of the fiscal year concerned shall, notwithstanding the provisions of Article 3 (Basis for duty assessment and rates of customs duty) of the Customs Tariff Act, Article 2 or paragraph (1) or (3) of Article 8-2, be the rate of customs duty calculated by adding to the rate of customs duty set out in the Appended Tariff Schedule of the said Act (in the case of goods set forth in Annexed Table 1-3, the rate of customs duty set out in that Table; hereinafter the same applies in this paragraph) or to the rate of customs duty set out in Schedule XXXVIII Japan annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 in Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization (in Articles 7-7 and 8-2 referred to as “WTO rate of duty”), whichever is lower (with respect to goods imported from the countries (including their territories) to which the benefit prescribed in the special provisions of a treaty concerning customs duty or Article 5 (Beneficial duty) of the Customs Tariff Act is not extended, the rate of customs duty as set out in the Appended Tariff Schedule of the said Act; hereinafter referred to as “ordinary rate of customs duty” in this Article and the next Article), the rate of customs duty as specified respectively in Annexed Table 1-6 for the category of goods imported during the period as set forth in that Table. However, for the fiscal year 2016, with respect to those goods set forth in the columns of Annexed Table 1-6 which cover wheat of a kind used for feed (i.e., goods of a kind used for feed, set forth in subheading 1001.99 of the Appended Tariff Schedule of the said Act (excluding meslin) or in subheading 1003.90 of the said Table; hereinafter the same applies in this Article)), this applies only to the case where the import quantity obtained by deducting from the total import quantity obtained by adding up, under each of the said columns, the import quantity of the goods set forth in the said column during the fiscal year concerned, the total import quantity obtained by adding up, under each of the said columns, the import quantity of wheat of a kind used for feed to which the benefit of tariff concession referred to in paragraph (1) of Article 9-2 is granted exceeds the quantity publicly notified in advance by the Minister of Finance (referred to as “threshold import quantity not covered by the Agreement” in paragraph (6)).
(2)The preceding paragraph shall not apply to the case where goods set forth in Annexed Table 1-6 fall under any of the following items:
(i)goods prescribed by Cabinet Order pursuant to the provision of paragraph (2) of Article 8-5 if they are imported within the quantity limit prescribed by Cabinet Order, as provided for in the Descriptions Column of Annexed Table 1;
(ii)milk and cream set forth in subheadings 0402.10-1 and -2-(2), subheadings 0402.21-1 and -2-(2), subheading 0402.29 and subheadings 0402.99-1-(2) and -2, of the Appended Tariff Schedule of the Customs Tariff Act, curdled milk, cream, etc. set forth in subheading 0403.90-1 of the said Schedule, whey and prepared whey set forth in subheading 0404.10-1 of the said Schedule, and butter and other oils and fats derived from milk and dairy spreads set forth in subheadings 0405.10, 0405.20 and 0405.90, of the said Schedule, if they are imported by the Agriculture and Livestock Industries Corporation within the quantity limit provided for in paragraph (1) of Article 13 of the Temporary Measures Act for Subsidy for Producers of Milk for Manufacturing Use, etc. (Act No. 112 of 1965) or if they are imported with the approval of the Minister of Agriculture, Forestry and Fisheries as provided for in paragraph (2) of the said Article;
(iii)wheat and meslin set forth in subheadings 1001.11, 1001.19, 1001.91 and 1001.99, of the Appended Tariff Schedule of the Customs Tariff Act, barley set forth in subheadings 1003.10 and 1003.90, of the said Schedule, triticale set forth in subheading 1008.60-2 of the said Schedule, wheat flour and meslin flour set forth in subheading 1101.00 of the said Schedule, barley flour and triticale flour set forth in subheadings 1102.90-1 and -2, of the said Schedule, cereal groats, etc. set forth in subheading 1103.11, subheadings 1103.19-1 and -2, and subheadings 1103.20-1, -4 and -5, of the said Schedule, worked cereal grains set forth in subheadings 1104.19-1 and -3 and subheadings 1104.29-1 and -3, of the said Schedule, wheat starch set forth in subheading 1108.11 of the said Schedule, food preparations of cereal flour, etc. set forth in subheadings 1901.20-1-(2)-B, -C, and -D-(a) and subheadings 1901.90-1-(2)-B, -C, and -D-(a), of the said Schedule, food preparations of cereals, etc. set forth in subheadings 1904.10-2-(2) and -(3), subheadings 1904.20-2-(2) and -(3), subheading 1904.30 and subheadings 1904.90-2 and -3, of the said Schedule, and food preparations set forth in subheading 2106.90-2-(1)-B, of the said Schedule, if they are imported by the Government pursuant to the provision of Article 42 of the Act for Stabilization of Supply, Demand and Prices of Staple Food (Act No. 113 of 1994) or they are imported as the barley, wheat, etc., pertaining to the purchase and sale of the Government carried out in response to the application made in joint names as prescribed in Article 43 of the said Act; and the barley, wheat, etc. to be prescribed by Cabinet Order as provided for in item (iii) of paragraph (1) of Article 45 of the said Act, if they are imported with the certification of the Minister of Agriculture, Forestry and Fisheries pursuant to the provision of Cabinet Order;
(iv)rice set forth in subheadings 1006.10, 1006.20, 1006.30 and 1006.40, of the Appended Tariff Schedule of the Customs Tariff Act, rice flour set forth in subheading 1120.90-3 of the said Schedule, cereal groats, etc. set forth in subheadings 1103.19-4 and 1103.20-3-(2), of the said Schedule, worked cereal grains set forth in subheadings 1104.19-2-(2) and 1104.29-2, of the said Schedule, food preparations of flour, etc. set forth in subheadings 1901.20-1-(2)-A and -(3) and subheadings 1901.90-1-(2)-A and -(3), of the said Schedule, food preparations of cereals, etc. set forth in subheadings 1904.10-2-(1), 1904.20-2-(1) and 1904.90-1, of the said Schedule and food preparations set forth in subheading 2106.90-2-(1)-A of the said Schedule, if they are imported by the Government pursuant to the provision of Article 30 of the Act for Stabilization of Supply, Demand and Prices of Staple Food or they are imported as rice, etc. pertaining to the purchases and sales of the Government carried out in response to the application made in joint names as prescribed in Article 31 of the said Act; rice, etc. to be prescribed by Cabinet Order as provided for in item (iii) of paragraph (1) of Article 34 of the said Act, if they are imported with the certification of the Minister of Agriculture, Forestry and Fisheries pursuant to the provision of Cabinet Order; and goods pertaining to the return of rice (including goods prescribed by Cabinet Order as those equivalent to such rice) which was lent by the Government pursuant to the provision of paragraph (1) of Article 49 of the said Act;
(v)goods which are subjected to the measure prescribed in item (ii) of paragraph (1) of Article 9 (Emergency duty, etc.) of the Customs Tariff Act or other measures prescribed in Article XIX:1 (Emergency action on imports of particular products) of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization (referred to as “General Agreement” in item (ii) of paragraph (4) of Article 7-6) and the Agreement on Safeguards in Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as “Safeguard Agreement”).
(vi)goods which are, pursuant to the provision of Cabinet Order, confirmed by the Director General of Customs as those having been shipped to Japan before the trigger day;
(3)In cases where, with respect to goods set forth in Annexed Table 1-6 which fall under the case provided for in paragraph (1), it is found, in light of the import trends of such goods or other circumstances, that importation of such goods is not likely to cause injury to the domestic industries producing the same kind of goods or other goods which directly compete with such imported goods in their use, application of the said paragraph may, pursuant to the provision of Cabinet Order, be suspended, specifying the goods and period of time, for such specified goods imported within such specified period of time.
(4)The threshold import quantity provided for in paragraph (1) shall be the quantity obtained by calculating, using the method specified respectively in each of the following items for the category of the cases as set forth therein, as the total quantity obtained by adding up, under each of the columns of the Annexed Table 1-6, the import quantities of goods set forth in that Table. However, if the quantity thus calculated is less than 105/100 of the quantity equivalent to one-third of the total quantity of the annual imports (hereinafter referred to as “average quantity of imports” in this Article) (in the case of goods set forth in columns 15 to 19 of the said Table, the period from October 1 of each year to September 30 of the next year; hereinafter the same applies in this Article) for the past three consecutive years inclusive of the year preceding the year to which the first day of the fiscal year concerned belongs (in the case of goods set forth in Columns 15 to 19 of the said Table, “the year preceding the year” means the period from October 1 of the year prior to the preceding year to which the first day of the fiscal year concerned belongs to September 30 of the next year; hereinafter simply referred to as “preceding year” in this Article), then the threshold import quantity shall be the quantity obtained by multiplying the average quantity of imports by 105/100:
(i)where the average quantity of imports is equal to or less than 10/100 of the quantity equivalent to one-third of the total annual quantities of domestic consumption for the last three consecutive years inclusive of the preceding year (hereinafter such equivalent quantity is referred to as “average quantity of domestic consumption” in this Article): the quantity obtained by adding to the quantity obtained by multiplying the average quantity of imports by 125/100, the quantity of domestic consumption during the preceding year minus the quantity of domestic consumption during the year before the said preceding year (in the case of goods set forth in Columns 15 to 19 of the Annexed Table 1-6, the period from October 1 of the year prior to the preceding year to which the first day of the fiscal year concerned belongs to September 30 of the next year; hereinafter simply referred to as “year before the preceding year” in this Article) (in the case where there remains any non-deductible quantity after having deducted the quantity of domestic consumption during the year before the preceding year, from the quantity of domestic consumption during the preceding year, the quantity shall be 125/100 of the said average quantity of imports minus such non-deductible quantity);
(ii)where the average quantity of imports exceeds 10/100 of the average quantity of domestic consumption but is equal to or less than 30/100 of the said quantity: the quantity obtained by adding to the quantity obtained by multiplying the average quantity of imports by 110/100, the quantity of domestic consumption during the preceding year minus the quantity of domestic consumption during the year before the preceding year (in the case where there remains any non-deductible quantity after having deducted the quantity of domestic consumption during the year before the preceding year from the quantity of domestic consumption during the preceding year, the quantity shall be 110/100 of the average quantity of imports minus such non-deductible quantity);
(iii)where the average quantity of imports exceeds 30/100 of the average quantity of domestic consumption: the quantity obtained by adding to the quantity obtained by multiplying the average quantity of imports by 105/100, the quantity of domestic consumption during the preceding year minus the quantity of domestic consumption during the year before the preceding year (in the case where there remains any non-deductible quantity after having deducted from the quantity of domestic consumption during the preceding year the quantity of domestic consumption during the year before the preceding year, the quantity shall be 105/100 of the average quantity of imports minus such non-deductible quantity).
(5)In cases where the threshold import quantity provided for in paragraph (1) is calculated pursuant to the provision of the preceding paragraph, if any of the columns of Annexed Table 1-6 contains goods the domestic consumption of which during the past three consecutive years inclusive of the preceding year is unknown, the threshold import quantity pertaining to the column containing such goods shall be the quantity obtained by multiplying the average quantity of imports of the said item by 125/100.
(6)The preceding two paragraphs apply mutatis mutandis to the case where the threshold import quantity not covered by the Agreement as provided for in the second sentence of paragraph (1) is calculated. In this case, the terms “the import quantities of goods set forth in that Table” in paragraph (4) shall be read as “the import quantities of goods set forth in that Table (excluding import quantities of wheat of a kind used for feed originating in Australia (referred to as “wheat of a kind used for feed originating in Australia” in item (i); hereinafter the same applies in this paragraph))” and the term “the total annual quantities of domestic consumption” in item (i) of the said paragraph shall be read as “the total annual quantities of domestic consumption (excluding the quantities equivalent to the import quantities of wheat of a kind used for feed originating in Australia; hereinafter the same applies in this paragraph)”.
(7)The import quantity provided for in paragraphs (1) and (4) shall, pursuant to the provision of Cabinet Order, be calculated on the basis of the statistical values or by the method used for preparation of the statistics, as referred to in item (i) of paragraph (1) of Article 102 (Issuance of certificates and inspection of statistics, etc.) of the Customs Act, and the quantity of domestic consumption provided for in paragraph (4) shall, pursuant to the provision of Cabinet Order, be calculated on the basis of the statistical values or by the method used for preparation of the statistics, as prescribed by Cabinet Order.
(8)With respect to goods set forth in Annexed Table 1-6, the Minister of Finance shall make, in the official gazette, a public notice of the quantity of imports of such goods, obtained by adding up, under each of the columns of the Table, the quantity of their imports from the first day of the fiscal year concerned until the end of each month (in fiscal year 2016, with respect to the column which contains wheat of a kind used for feed, the total import quantities obtained by adding up, under each of the columns, the import quantities of the goods set forth in these columns for a period from the first day of the fiscal year concerned until the last day of each month, and the import quantities obtained by deducting from such total import quantities, the total import quantities obtained by adding up, under each of the columns, the quantities of wheat of a kind used for feed imported under each of the columns during the period from the first day of the fiscal year concerned to the last day of each month and the import quantities of wheat of a kind used for feed to which the benefit of tariff concession referred to in paragraph (1) of Article 9-2 is granted, on or before the last day of the month following such each month, and if the total import quantity of goods set out in the said Table during the fiscal year concerned, obtained by adding up, under each of the columns, the quantity of their imports during the fiscal year concerned, exceeds the threshold import quantity for the fiscal year concerned (in fiscal year 2016, with respect to the column which contains wheat of a kind used for feed, limited to the case falling under the cases provided for in the second sentence of paragraph (1)), the Minister of Finance shall make, in the official gazette, a public notice of the trigger day for the goods pertaining to each of the columns under which such excess occurs, on or before the last day of the month following the month during which such excess occurs.

(Special emergency customs duty in cases where customs value falls below trigger price)

Article 7-4.The amount of customs duty levied, in each of the fiscal years from 1995 to 2016, on goods set forth in Annexed Table 1-7, the customs value of which (in the case of goods on which customs duty is levied on the basis of their quantity, Articles 4 to 4-9 of the Customs Tariff Act shall be followed in calculating such value; hereinafter the same applies) is less than the trigger price (i.e., the weighted average of customs value of such goods during the period from 1986 to 1988 or, if this cannot practically be applied, the value which is publicly notified by the Minister of Finance as the value calculated pursuant to the provision of Cabinet Order; hereinafter the same applies in this Article and in Annexed Table 1-7) shall, notwithstanding the provisions of Article 3 (Basis for duty assessment and rates of customs duty) of the said Act or Article 2 or paragraph (1) or (3) of Article 8-2, be the amount obtained by adding the amount calculated, using the method specified respectively in each of the following items for the category of the cases as set forth therein, to the amount equivalent to the amount of customs duty calculated on the basis of the ordinary rate of customs duty:
(i)where the difference between the trigger price and the customs value exceeds 10/100 of the trigger price but is not more than 40/100 of the trigger price: the amount of duty to be added = (trigger price × 0.9 - customs value) × 0.3;
(ii)where the difference between the trigger price and the customs value exceeds 40/100 of the trigger price but is not more than 60/100 of the trigger price: the amount of duty to be added = (trigger price × 0.6 - customs value) × 0.5 + trigger price × 0.09;
(iii)where the difference between the trigger price and the customs value exceeds 60/100 of the trigger price but is not more than 75/100 of the trigger price: the amount of duty to be added = (trigger price × 0.4 - customs value) × 0.7 + trigger price × 0.19;
(iv)where the difference between the trigger price and the customs value exceeds 75/100 of the trigger price: the amount of duty to be added = (trigger price × 0.25 - customs value) × 0.9 + trigger price × 0.295.
(2)The preceding paragraph shall not apply in the case where goods set forth in Annexed Table 1-7 fall under any of items (i) to (v) of paragraph (2) of the preceding Article or are those on which additional customs duty is levied pursuant to the provision of the said Article.
(3)In cases where the importation of any of goods set forth in Annexed Table 1-7 is, in light of the import trends or other circumstances, found not likely to cause injury to the domestic industries producing the same kind of goods or other goods which directly compete with such imported goods in their use, application of paragraph (1) may, pursuant to the provision of Cabinet Order, be suspended, specifying the goods and period of time, for such specified goods imported within such specified period of time.

(Emergency measures of customs duty pertaining to fresh, etc. beef and frozen beef)

Article 7-5.In cases where, in each of the fiscal years from 1995 to 2016, fresh or chilled meat of bovine animals set forth in heading 02.01 of the Appended Tariff Schedule of the Customs Tariff Act (hereinafter referred to as “fresh, etc. beef” in this Article) or frozen meat of bovine animals set forth in heading 02.02 of the said Schedule (hereinafter referred to as “frozen beef” in this Article) falls under the cases set forth in the following items, the rate of customs duty to be levied on fresh, etc. beef or frozen beef imported within the period specified in the said items shall, notwithstanding the provision of Article 2 or paragraph (1) or (3) of Article 8-2, be the rate of duty as prescribed in the said Schedule:
(i)where the import quantity of fresh, etc. beef or frozen beef during the period from the first day of the fiscal year concerned to the last day of each month belonging to the first, second and third quarter of the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance, that is the quantity equivalent to 117/100 of the import quantity of fresh, etc. beef or frozen beef during the period from the first day of the fiscal year preceding the fiscal year concerned to the last day of the quarter of the fiscal year preceding the fiscal year concerned, to which the said each month belongs (in the fiscal year 2016, if such import quantity is not more than one-half of the total import quantity of fresh, etc. beef or frozen beef during the period from the first day of each of the fiscal years 2002 and 2003 to the last day of the quarter to which the said each month of the same fiscal years belongs, the quantity equivalent to one-half of such import quantity) (the quantity so notified is referred to as “trigger import quantity pertaining to item (i)” in paragraph (3)) (in fiscal year 2016, limited to the case where the import quantity of fresh, etc. beef or frozen beef during the period from the first day of the fiscal year concerned to the last day of each of the months belonging to the first, second and third quarter of the fiscal year concerned (excluding the import quantity pertaining to those goods confirmed, pursuant to the provision of Cabinet Order, by the Director General of Customs as the goods originating in Australia under the provision of the Agreement between Japan and Australia for an Economic Partnership (referred to as “Agreement with Australia” in Articles 7-8 and 9-2) (such goods so confirmed are referred to as “goods originating in Australia” in paragraph (1) of Article 7-8), and the import quantity pertaining to those goods to which the benefit of tariff concession referred to in paragraph (2) of Article 8-6 is granted; hereinafter referred to as “import quantity not covered by the Agreement” in this Article) exceeds the quantity publicly notified in advance by the Minister of Finance, that is the quantity obtained by multiplying the import quantity not covered by the Agreement during the period from the first day of the fiscal year preceding the fiscal year concerned to the last day of the quarter to which the said each month of the fiscal year preceding the fiscal year concerned belongs by 117/100 (the quantity so notified is referred to as “trigger import quantity pertaining to item (i)” in paragraph (3))) : within the period from the first day of the quarter following the quarter to which the month during which such excess occurs belongs (if such excess occurs in June, September or December, then the first day of the second month following the month during which such excess occurs; the first day is referred to as “trigger day pertaining to item (i)” in paragraph (3)) to the last day of the fiscal year concerned);
(ii)where the import quantity of fresh, etc. beef or frozen beef during the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance, that is the quantity equivalent to 117/100 of the import quantity of fresh, etc. beef or frozen beef during the fiscal year preceding the fiscal year concerned (in the fiscal year 2016, if such quantity is not more than one-half of the total import quantity of fresh, etc. beef or frozen beef in each of the fiscal years of 2002 and 2003, the quantity equivalent to such one-half of the quantity) (the quantity so notified is referred to as “threshold import quantity pertaining to item (ii)” in paragraph (3)) (in fiscal year 2016, limited to the case where the import quantity not covered by the Agreement during the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance, that is the quantity obtained by multiplying the import quantity not covered by the Agreement during the fiscal year preceding the fiscal year concerned by 117/100 (the quantity so notified is referred to as ”trigger import quantity not covered by the Agreement pertaining to item (ii)” in paragraph (3))): within the period from the first day of the fiscal year following the fiscal year concerned (if such excess occurs in March, then May 1 of the same fiscal year; the first day is referred to as “trigger day pertaining to item (ii)” in paragraph (3)) to the last day of the first quarter of the fiscal year following the fiscal year concerned.
(2)Paragraph (7) of Article 7-3 applies mutatis mutandis to the case where import quantity of fresh, etc. beef or frozen beef provided for in the preceding paragraph is calculated.
(3)The Minister of Finance shall make, in the official gazette, a public notice of the quantity of fresh, etc. beef or frozen beef imported during the period from the first day of the fiscal year concerned to the last day of each month (in fiscal year 2016, such import quantity and the import quantity not covered by the Agreement) on or before the last day of the month following the said each month and, if the quantity of fresh, etc. beef or frozen beef imported during the fiscal year concerned exceeds the threshold import quantity pertaining to item (i) (in fiscal year 2016, limited to the case where the import quantity not covered by the Agreement during the said fiscal year exceeds the threshold import quantity not covered by the Agreement pertaining to item (i)) or the threshold import quantity pertaining to item (ii) (in fiscal year 2016, limited to the case where such import quantity not covered by the Agreement exceeds the threshold import quantity not covered by the Agreement pertaining to item (ii)), he shall make, in the official gazette, a public notice of that fact and the trigger day pertaining to item (i) or (ii) on or before the last day of the month following the month during which such excess occurs.

(Emergency measures of customs duty pertaining to live swine and pork, etc.)

Article 7-6.In each of the fiscal years from 1995 to 2016, in cases where live swine set forth in subheading 0103.92 of the Appended Tariff Schedule of the Customs Tariff Act (hereinafter referred to as “live swine” in this Article and in Annexed Tables 1-3-2 and 1-8), and meat of swine set forth in subheadings 0203.11-2, 0203.12-2, 0203.19-2, 0203.21-2, 0203.22-2 and 0203.29-2 of the Appended Tariff Schedule of the said Act, offal of swine set forth in subheadings 0206.30-2-(2) and 0206.49-2- (2) of the said Schedule, offal of swine, etc. set forth in subheadings 0210.11, 0210.12, 0210.19 and 0210.99-1 of the said Schedule and ham, bacon, etc. set forth in subheadings 1602.41-1, 1602.42-1 and 1602.49-2-(1) of the said Schedule (hereinafter referred to as “pork, etc.” in this Article and in Annexed Tables 1-3-2 and 1-8) fall under the cases set forth in the following items, the rate of customs duty to be levied on such live swine or pork, etc., if imported within the period specified in the said items shall, notwithstanding the provision of paragraph (1) or (3) of Article 8-2, be the rate of customs duty as prescribed in Annexed Table 1-3. In applying this provision, the term “item 1-1 of the said Table” in subheading 0103.92-[1] of Annexed Table 1-3 shall be read as “item 1-2 of the said Table”, the term “item 2-1 of the said Table” in subheading 0203.11-2-[1] of the said Table shall be read as “item 2-2 of the said Table”, the term “item 3-1 of the said Table” in subheading 0203.12-2-[1] of the said Table shall be read as “item 3-2 of the said Table”, and the term “item 4-1 of the said Table” in subheading 0210.11-[1] of the said Table shall be read as “item 4-2 of the said Table”:
(i)where import quantity of pork, etc. (excluding import quantity pertaining to pork, etc. to which the benefit of tariff concession referred to in paragraph (2) of Article 8-6 is granted; hereinafter the same applies in this Article) during the period from the first day of the fiscal year concerned to the last day of each month which belongs to the first, second and third quarter of the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance, that is the quantity equivalent to 119/100 of one-third of the total import quantity of pork, etc. during the period from the first day of each fiscal year of the three consecutive fiscal years preceding the fiscal year concerned to the last day of the quarter to which the said each month of the fiscal year preceding the fiscal year concerned belongs: within the period from the first day of the quarter following the quarter to which the month during which such excess occurs belongs (if such excess occurs in June, September or December, then the first day of the second month following the month during which such excess occurs; the first day is referred to as “trigger day pertaining to item (i)” in paragraph (7)) to the last day of the fiscal year concerned;
(ii)where imported quantity of pork, etc. during the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance, that is the quantity equivalent to 119/100 of one-third of the total import quantity of pork, etc. for the preceding three consecutive fiscal years inclusive of the fiscal year preceding the fiscal year concerned: within the period from the first day of the fiscal year following the fiscal year concerned (in the case where the month during which such excess occurs is March, then May 1 of the fiscal year following the fiscal year concerned; the first day is referred to as “trigger day pertaining to item (ii)” in paragraph (7)) to the last day of the first quarter of the same fiscal year.
(2)In cases where, in each of the fiscal years from 1995 to 2016, import quantity of live swine and pork, etc. during the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance (hereinafter referred to as “threshold import quantity” in this Article), the rate of customs duty to be levied on live swine and pork, etc., if imported within the period from the first day of the second month following the month during which such excess occurs (hereinafter referred to as “trigger day pertaining to paragraph (2)” in this Article) to the last day of the fiscal year concerned shall, notwithstanding the provisions of Article 2 or paragraph (1) or (3) of Article 8-2, be the rate of customs duty as set out in Annexed Table 1-8.
(3)In the case falling under item (i) or (ii) of paragraph (1) and also under the preceding paragraph, the rate of customs duty to be levied on live swine or pork, etc. imported within the period in which the period specified in item (i) or (ii) of paragraph (1) overlaps with the period specified in the preceding paragraph (hereinafter referred to as “overlapping period” in this Article) shall, notwithstanding the provisions of Article 2 or paragraph (1) or (3) of Article 8-2, be the rate of customs duty as set out in Annexed Table 1-8. In applying this provision, the term “item 1-3 of the said Table” in subheading 0103.92-[1] of Annexed Table 1-8 shall be read as “item 1-4 of the said Table”, the term “item 2-3 of the said Table” in subheading 0203.11-2-[1] of the said Table shall be read as “item 2-4 of the said Table”, the term “item 3-3 of the said Table” in subheading 0203.12-2-[1] of the said Table shall be read as “item 3-4 of the said Table”, and the term “item 4-3 of the said Table” in subheading 0210.11-[1] of the said Table shall be read as “item 4-4 of the said Table”.
(4)The preceding two paragraphs shall not apply in cases where any of the situations as set forth in the following occurs:
(i)where, pursuant to the provision of Cabinet Order, it is confirmed by the Director General of Customs that live swine or pork, etc. pertaining to importation was shipped to Japan before the trigger day pertaining to paragraph (2) or the first day of the overlapping period (limited to the first day of the overlapping period in the case where the goods fall under the case provided for in paragraph (2) while they have already fallen under the case provided for in item (i) or (ii) of paragraph (1));
(ii)where live swine or pork, etc., is subjected to the measure prescribed in item (ii) of paragraph (1) of Article 9 (Emergency duty, etc.) of the Customs Tariff Act or other measures prescribed in Article XIX:1 (Emergency action on imports of particular goods) of the General Agreement and the Safeguard Agreement.
(5)Paragraph (4) of Article 7-3 applies mutatis mutandis to the case where the threshold import quantity provided for in paragraph (2) is to be calculated. In this case, the term “the import quantities” in paragraph (4) of the said Article shall be read as “the import quantities (excluding the import quantities pertaining to goods to which the benefit of tariff concession referred to in paragraph (2) of Article 8-6 is granted)” and the terms “the average quantities of domestic consumption” and “the quantity of domestic consumption” in the items of the said paragraph shall be read as “the average quantities of domestic consumption (excluding the import quantity pertaining to goods to which the benefit of tariff concession referred to in paragraph (2) of Article 8-6 is granted”, respectively”.
(6)Paragraph (7) of Article 7-3 applies mutatis mutandis to the case where the import quantity provided for in paragraph (1) or (2) or the quantity of domestic consumption provided for in paragraph (4) of the said Article, as applied mutatis mutandis pursuant to the preceding paragraph is to be calculated.
(7)In each of the fiscal years from 1995 to 2016, the Minister of Finance shall make, in the official gazette, (a) a public notice of the import quantity of pork, etc. and the import quantity of live swine or pork, etc. during the period from the first day of the fiscal year concerned to the last day of each month of the said fiscal year, on or before the last day of the month following the said each month, and (b), if the import quantity of pork, etc. during the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance as provided for in item (i) or (ii) of paragraph (1), a public notice of the fact of such excess and the trigger day pertaining to item (i) or the trigger day pertaining to item (ii) (if there is any overlapping period provided for in paragraph (3), then the first day of the overlapping period), on or before the last day of the month following the month during which such excess occurs, and (c), if the import quantity of live swine and pork, etc. during the fiscal year concerned exceeds the threshold import quantity for the said fiscal year, a public notice of the fact of such excess and the trigger day pertaining to paragraph (2) (if there is any overlapping period provided for in paragraph (3), then the first day of the overlapping period), on or before the last day of the month following the month during which such excess occurs.

(Emergency measures of customs duty based on the Economic Partnership Agreement)

Article 7-7.In cases where there is the fact of increase in imports of a specific kind of goods as a result of tariff concession granted under the Economic Partnership Agreement (hereinafter simply referred to as “tariff concession” in this Article) (the specific kind of goods herein is limited to those to which the benefit of tariff concession is granted under such Agreement) (in paragraphs (6) and (7) referred to as “the fact of import increase of a specific kind of goods”) and there is the fact that such increase in imports causes or threatens to cause serious injury to the domestic industries producing the same kind of goods or other goods which directly compete with such imported goods in their use (in paragraphs (6) and (7) referred to as “the fact of serious injury, etc. to domestic industries”), if it is found urgently necessary for the national economy, the following measures may, pursuant to the provision of Cabinet Order, specifying the goods and period of time, be taken under the provisions of the Economic Partnership Agreement (i.e., a treaty or other international engagement which strengthens the economic partnership between Japan and other party (including territories having their own tariff and trading regimes; hereinafter the same applies) by comprehensively taking measures for establishing free trade areas as provided for in paragraph (8)(b) of Article XXIV of the General Agreement on Tariffs and Trade 1994 of Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization or other measures for liberalizing trade, promoting investment, etc. and which is designated by Cabinet Order as an Agreement requiring certain measures to be taken under this Act in order to ensure its proper implementation (hereinafter the same applies));.
(i)to make no further reduction of the rate of customs duty chargeable on all of the specified goods to be imported within the specified period or on the excess part of such specified goods over a certain quantity or value, in cases where such further reduction is required for such specified goods under the Economic Partnership Agreement;
(ii)to raise the rate of customs duty chargeable on all of the specified goods to be imported within the specified period or on the excess part of such specified goods over a certain quantity or value, to the level not exceeding the rate of duty as set out in the Appended Tariff Schedule of the Customs Tariff Act (in cases where the rate of duty referred to in Article 2 is applicable, such applicable rate of duty) or to the level not exceeding the WTO rate of duty, whichever is lower (hereinafter referred to as “effective rate of duty”).
(2)In the case where any measure prescribed in the preceding paragraph is taken, if any special reason so warrants, the period specified under the said paragraph may, pursuant to the provision of Cabinet Order, be extended under the provisions of the Economic Partnership Agreement.
(3)In cases where any measure prescribed in paragraph (1) is to be taken or has been taken with respect to specific goods, the tariff concessions granted to those goods other than such specified goods may, pursuant to the provision of Cabinet Order, be modified or tariff concessions may newly be granted to goods not subjected to tariff concessions, under the provisions of the Economic Partnership Agreement, and the rate of duty so modified or granted may be applied.
(4)In cases where any emergency measure of customs duty is taken by any party to the Economic Partnership Agreement other than Japan (referred to as “emergency measure taken by a party other than Japan” in the next paragraph) under the provisions of the Economic Partnership Agreement, the tariff concessions may, pursuant to the provision of Cabinet Order, wholly or partly be suspended with respect to those goods to be designated from among those subjected to tariff concessions and the customs duty may be imposed on such goods at a rate not exceeding the effective rate of duty.
(5)The measures prescribed in the preceding two paragraphs shall be taken with due consideration so that their effects may not exceed the extent necessary to compensate for the measures prescribed in paragraph (1) or to serve as countermeasures against the emergency measure taken by a party other than Japan and their effects on the national economy may be minimized to the extent possible.
(6)In cases where there is sufficient evidence to substantiate the fact of import increase of a specific kind of goods and the fact of serious injury, etc. to the Japanese industry caused by such increase, the Government shall, if it is found necessary, conduct an investigation to determine whether these facts actually exist.
(7)In the case where the investigation referred to in the preceding paragraph has been initiated, if the fact of import increase of a specific kind of goods and the fact of the serious injury, etc. to the Japanese industry caused by such increase are presumed from the sufficient evidence even before completion of the investigation and if it is found particularly urgently necessary for the national economy, the following measures may, pursuant to the provision of Cabinet Order, be taken, specifying the goods and period of time, under the provisions of the Economic Partnership Agreement:
(i)to make no further reduction of the rate of customs duty chargeable on all of the specified goods to be imported within the specified period or on the excess part of such specified goods over a certain quantity or value, in cases where such further reduction is required for such specified goods under the Economic Partnership Agreement;
(ii)to raise the rate of customs duty chargeable on all of the specified goods imported within the specified period or on the excess part of such specified goods over a certain quantity or value, to the level not exceeding the effective rate of duty.
(8)When the investigation referred to in paragraph (6) is completed, the Government shall, except in the case where a measure prescribed in paragraph (1) is taken, refund without delay customs duty levied pursuant to the provision of the preceding paragraph. Where the amount of customs duty levied pursuant to the provision of the preceding paragraph exceeds the amount of customs duty which would be levied had customs duty been levied under paragraph (1) on the goods specified under the preceding paragraph, imported during the period in which the measure prescribed in the preceding paragraph was taken, such excess part of the amount of customs duty shall also be refunded.
(9)In addition to what is provided for in the preceding paragraphs, necessary matters concerning application of these provisions shall be prescribed by Cabinet Order.

(Suspension of application of the tariff concessions under the Agreement with Australia)

Article 7-8.With respect to fresh, etc. beef provided for in paragraph (1) of Article 7-5 (limited to the beef originating in Australia; hereinafter the same applies in this Article) or frozen beef provided for in the said paragraph (limited to the beef originating in Australia; hereinafter the same applies in this Article), if the quantity of such fresh, etc. beef or frozen beef imported during the fiscal year concerned exceeds a given quantity specified under the Agreement with Australia (in paragraph (4) referred to as “threshold import quantity”), the rate of customs duty to be levied on the fresh, etc. beef or frozen beef imported within the period from the first day of the second month following the month during which such excess occurs (hereinafter the first day is referred to as “trigger day” in this Article) until the last day of the fiscal year concerned shall be the effective rate of duty applicable on the trigger day, the effective rate of duty applicable on the day preceding the date on which the Agreement with Australia enters into force and the base rate of duty specified in the Agreement with Australia, whichever is the lowest.
(2)The preceding paragraph shall not apply to fresh, etc. beef or frozen beef which is, pursuant to the provision of Cabinet Order, confirmed by the Director General of Customs as the goods shipped to Japan before the trigger day.
(3)Paragraph (7) of Article 7-3 applies mutatis mutandis to the case where the import quantity of fresh, etc. beef or frozen beef is calculated.
(4)The Minister of Finance shall make, in official gazette, a public notice (a) of the quantity of fresh, etc. beef or frozen beef imported from the first day of the fiscal year concerned to the last day of each month, on or before the last day of the month following such each month, and (b), in cases where the import quantity of fresh, etc. beef or frozen beef during the fiscal year concerned exceeds the threshold import quantity, of the fact of such excess and the trigger day, on or before the last day of the month following the month during which such excess occurs.

(Reduction of customs duty on products manufactured from goods exported for processing or assembly)

Article 8.In cases where products set forth in the following, which are manufactured using, as their raw materials or components, goods exported from Japan before March 31, 2017 for the purpose of processing or assembly (excluding products for which the rate of duty is prescribed as free in the Appended Tariff Schedule to the Customs Tariff Act) are imported within one year from the date of their export permission (or, in cases where there is any unavoidable reason for requiring a period longer than one year, if approval of the Director General of Customs is granted pursuant to the provision of Cabinet order, within such period longer than one year as may be specified by the Director General of Customs), the amount of customs duty chargeable on such products may, pursuant to the provision of Cabinet Order, be reduced within the amount calculated by multiplying the amount of customs duty to be levied on such products by the ratio of the value prescribed by Cabinet Order as the value equivalent to the customs value which would be obtained had such exported goods been imported in the nature and shape in which they were exported to the customs value of such products:
(i)products falling under heading 42.02 of the Appended Tariff Schedule of the Customs Tariff Act, the outer surface of which is made of leather or composition leather, and products falling under heading 42.03 of the said Tariff Schedule other than baseball gloves and mitts, (limited to products manufactured, as their raw materials or components, from such goods (exported from Japan) as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order);
(ii)products falling under Chapter 57 and Chapters 61 to 63 of the Appended Tariff Schedule of the Customs Tariff Act (limited to products manufactured, as their raw materials or components, from such goods (exported from Japan) as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order);
(iii)the uppers of footwear falling under the products of subheading 6406.10-1 of the Appended Tariff Schedule of the Customs Tariff Act (limited to products manufactured, as their raw materials or components, from such goods (exported from Japan) as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order);
(iv)products of a kind used for motor vehicles, falling under subheading 9401.90-1 of the Appended Tariff Schedule of the Customs Tariff Act (limited to products manufactured, as their raw materials or components, from such goods (exported from Japan) as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order).
(2)The preceding paragraph shall not apply to goods to which paragraph (1) or (3) of the next Article applies.

(Preferential tariff, etc.)

Article 8-2.The rates of customs duty applicable to goods set forth in the following items, originating in countries (including territories which have their own customs and trade systems) the economies of which are developing and which desire to receive a special benefit concerning customs duty and are designated by Cabinet Order as the countries to which such special benefit is appropriate to be extended (hereinafter referred to as “beneficiaries of preferences, etc.”), shall, notwithstanding the provision of Article 2, be as prescribed in the said items, provided that such goods are imported on or before March 31, 2021:
(i)goods falling under Chapters 1 to 24 of the Appended Tariff Schedule of the Customs Tariff Act, if they are set forth in Annexed Table 2: the rates of customs duty as prescribed in the said Table;
(ii)goods falling under Chapters 25 to 76, 78 to 97 of the Appended Tariff Schedule of the Customs Tariff Act, if they are set forth in Annexed Table 3 (excluding the goods for which the rates of duty are prescribed as free in the Appended Tariff Schedule of the said Act (or, in Annexed Table 1 in the case of goods set forth therein)): the rates of customs duty obtained by multiplying the rates of customs duty prescribed in the Appended Tariff Schedule of the said Act (or, the rates of customs duty prescribed in Annexed Table 1 in the case of goods set forth therein) or the WTO rates of duty, whichever is lower, by the factors prescribed in Annexed Table 3;
(iii)goods falling under Chapters 25 to 76 and 78 to 97 of the Appended Tariff Schedule of the Customs Tariff Act, other than those set forth in Annexed Tables 3, 4 and 5 (excluding the goods for which the rates of duty are prescribed as free in the Appended Tariff Schedule of the said Act (or, in Annexed Table 1 in the case of goods set forth therein)): free.
(2)Notwithstanding the provisions of the preceding paragraph, if any goods set forth in the items of the said paragraph, originating in one of the beneficiaries of preferences, etc. are imported on or before the date specified in the said paragraph, and are found inappropriate for granting the benefit concerning customs duty prescribed in the said paragraph, taking account of the degree of international competitiveness of the goods originating in such beneficiary or any other circumstances, such benefit may, pursuant to the provision of Cabinet Order, not be extended, specifying the beneficiaries of preferences, etc. (i.e., the place of origin of such goods) and the goods, to such specified goods.
(3)The rate of customs duty to be levied on goods, other than those set forth in Annexed Table 5, originating in the beneficiaries of preference, etc. designated as the least developed countries by the Resolution of the General Assembly of the United Nations and prescribed by Cabinet Order as the countries to which the special benefit concerning preferential tariff (i.e., the customs duty to be levied pursuant to the provision of paragraph (1)) may appropriately be extended (such beneficiaries are referred to as the “special beneficiaries of preference” in the next Article) (excluding the goods for which the rates of duty are prescribed as free in the Appended Tariff Schedule of the Customs Tariff Act (or, in the case of the goods set forth in Annexed Table 1, in the said Table) and in item (i) of the said paragraph and the goods set forth in item (iii) of the said paragraph) shall, notwithstanding the provision of Article 2 or item (i) or (ii) of the said paragraph, be free from customs duty, if they are imported on or before the date specified in the said paragraph.
(4)Necessary matters concerning verification of the origin of goods to which paragraph (1) or the preceding paragraph applies or other necessary matters concerning application of these provisions shall be prescribed by Cabinet Order.

(Suspension of application of preferential tariff, etc.)

Article 8-3.In cases where, as a result of application of the rates of customs duty prescribed in the items of paragraph (1) of the preceding Article, goods set forth in the said items, originating in the beneficiaries of preferences, etc. (excluding special beneficiaries of preference) are imported in such increased quantities as to cause or threaten to cause injury to the Japanese industry engaged in the production of the same kind of goods or other goods directly competing with such imported goods in their use, if it is found urgently necessary to protect such industry, application of the said paragraph may, pursuant to the provision of Cabinet Order, be suspended, specifying the goods, the period of time and, if found necessary, the country or territory to be covered.
(2)The preceding paragraph applies mutatis mutandis to the goods other than those set forth in Annexed Table 5, originating in the special beneficiaries of preference (excluding the goods for which the rates of customs duty are prescribed as free in the Appended Tariff Schedule of the Customs Tariff Act (or, in the case of goods set forth in Annexed Table 1, in the said Table)). In this case, the terms “the rates of customs duty prescribed in the items of paragraph (1) of the preceding Article” and “the said paragraph” in the preceding paragraph shall be read as “the rates of customs duty prescribed in paragraph (1) or (3) of the preceding Article” and “paragraph (1) or (3) of the said Article” respectively, and when application of paragraph (3) of the preceding Article is suspended with respect to goods to which the said paragraph applies, paragraph (1) of the said Article shall not apply to such goods.

(Application of special tariff system to goods to which temporary rate of duty is applicable)

Article 8-5.For the purpose of application of paragraph (1) or (2) of Article 6, paragraph (1) or (3) of Article 7, paragraph (1) or (2) of Article 8 or paragraph (1), (4) or (8) of Article 9, of the Customs Tariff Act to those goods provided for in Articles 2 and 8-2, the term “customs duty to be levied at the rates set out in the Appended Tariff Schedule of this Act” in these provisions shall be read as “customs duty to be levied at the rates set out in the Appended Tariff Schedule of this Act (or, in cases where the rate of duty specified in Article 2, paragraph (1) of Article 7-3, paragraph (1) of Article 7-4, paragraph (2) or (3) of Article 7-6 or paragraph (1) or (3) of Article 8-2 of the Temporary Tariff Measures Act applies, such applicable rates of duty)”
(2)Article 9-2 of the Customs Tariff Act applies mutatis mutandis to goods to which the rates of duty applicable within a certain limit of quantities as set out in Annexed Table 1 apply if they are prescribed by Cabinet Order.

(Tariff rate quota system based on the Economic Partnership Agreement)

Article 8-6.With respect to goods for which the benefit of tariff concession is granted under the Economic Partnership Agreement within a certain limit of quantity (excluding goods provided for in the next paragraph), such benefit of tariff concession shall be applied, within such limit, to those goods imported by a person within the quantity of the quota allocated to him, the quantity of which is determined by the Government on the basis of the past record of such goods used, the prospective quantity of such goods to be used, and any other necessary consideration to the national economy.
(2)With respect to goods for which tariff concession is granted within a certain limit of quantity under the Economic Partnership Agreement, if such quantity is allocated by the importing country on the basis of a certificate issued by the exporting country (including territories which have their own customs and trade systems), the benefit of the tariff concession shall be applied to those goods imported by a person within the quantity of the quota allocated to him, the quantity of which is determined by the Government on the basis of the certificate issued by the party (other than Japan) to the Economic Partnership Agreement
(3)The details of how to allocate under the preceding two paragraphs, the procedures for receiving the quota or any other necessary matters concerning application of the preceding two paragraphs shall be prescribed by Cabinet Order.

(Formalities for application of reduced rate of duty, etc.)

Article 9.A person who seeks application of reduced rate of duty with respect to goods set forth in Annexed Table 1 and prescribed by Cabinet Order, for which the rate of duty is, on condition that they are used for specific purposes, reduced to a level lower than the rate of duty applicable to goods which are not subjected to such condition (hereinafter referred to as the “reduced rate of duty”), shall complete such formalities as may be prescribed by Cabinet Order.
(2)A person who seeks the benefit of tariff concession with respect of goods the tariff concession of which is granted on condition that they are used for specific purposes under the Economic Partnership Agreement and which are prescribed by Cabinet Order, shall complete such formalities as may be prescribed by Cabinet Order.

(Application of benefit of tariff concession pertaining to raw materials for manufacture under the Agreement with Australia)

Article 9-2.With respect to goods for which the tariff concession provided under the Agreement with Australia is granted on condition that they are used as raw materials for manufacturing feed under the customs supervision, if such goods are those imported as raw materials set forth in the following items and if the manufacturing process provided for in the said items completes at a manufacturing factory approved by the Director General of Customs within one year from the date of import permission of such goods, then the tariff concession shall, pursuant to the provision of Cabinet Order, be extended to such goods:
(i)goods set forth in subheading 1001.99 of the Appended Tariff Schedule of the Customs Tariff Act, intended to be used for the manufacture of feed prescribed by Cabinet Order;
(ii)goods set forth in subheading 1003.90 of the Appended Tariff Schedule of the Customs Tariff Act, intended to be used for the manufacture of feed prescribed by Cabinet Order;
(2)The Director General of Customs shall, if he finds that there will be no difficulty in ensuring the implementation of the Agreement with Australia, this Act or the Customs Act, grant approval referred to in the preceding paragraph.
(3)In the case where application of the benefit of tariff concession is sought pursuant to the provision of paragraph (1), the Director General of Customs may require security to be provided in an amount equivalent to the difference between the amount of customs duty calculated at the rate of duty which is not subjected to the condition that the goods concerned are to be used as raw materials for manufacturing feed under the customs supervision and the amount of customs duty calculated at the rate of duty applicable under the benefit of tariff concession.
(4)In carrying out manufacture provided for in the items of paragraph (1), except in the case where the Director General of Customs finds that there will be no difficulty in verifying the manufacture from the raw materials for which the benefit of tariff concession is granted pursuant to the provision of the said paragraph (hereinafter referred to as “raw materials for manufacture” in this Article) and hence approves their mixed use, no raw materials for manufacture shall be used in combination with any other raw materials of the same kind,
(5)When manufacture from raw materials for manufacture has been completed, the manufacturer concerned shall, pursuant to the provision of Cabinet Order, notify the customs of the quantities of such raw materials used and the quantities of products manufactured therefrom, and shall have such products examined by the customs each time such notification is made or whenever required.
(6)The raw materials for manufacture set forth in the items of paragraph (1) shall, within one year from the date of their import permission, not be used for the purposes other than those of manufacture provided for in the said items or be transferred to be used for the purposes other than those of manufacture provided for in the said items; provided, however, that this does not apply to the case where approval is, pursuant to the provision of Cabinet Order, granted by the Director General of Customs for any unavoidable reason.
(7)In the case where any of the situations as set forth in the following occurs, customs duty in an amount equivalent to the difference between the amount of customs duty calculated at the rate of duty which is not subjected to the condition that the goods concerned are to be used as raw materials for manufacturing feed under the customs supervision and the amount of customs duty calculated at the rate of duty applicable under the benefit of tariff concession shall immediately be collected from a person involved in such situation. However, where the raw materials for manufacture or the products manufactured therefrom were lost due to a disaster or for any unavoidable reason or were destroyed with the approval of the Director General of Customs, the customs duty on such raw materials shall not be collected, and where the raw materials for manufacture with respect to which the approval referred to in the proviso to the preceding paragraph was granted, have depreciated in value due to deterioration or damage or for any other unavoidable reason, customs duty on such raw materials may be reduced in the same manner as provided for in paragraph (1) of Article 10 (Reduction, or refund, of customs duty in the case of deterioration, damage, etc.) of the Customs Tariff Act.
(i)where approval referred to in the proviso to the preceding paragraph has been granted with respect to the raw materials for manufacture set forth in the items of paragraph (1), where the raw materials for manufacture have been, without such approval, used for purposes other than those of manufacture provided for in the said items or transferred for purposes other than those of manufacture provided for in the said items, or where, within one year from the date of their import permission, notification provided for in paragraph (5) has not been made or the manufacture has not been completed.
(ii)where the raw materials for manufacture have been used for manufacture at a place other than the manufacturing factory approved by the Director General of Customs pursuant to the provision of paragraph (1) or where they have been used in violation of paragraph (4).
(8)A person who has been granted approval of a manufacturing factory under paragraph (1) shall, pursuant to the provision of Cabinet Order, pay to the customs, service charge in an amount fixed by Cabinet Order on the basis of the total floor space of the manufacturing factory, the validity period of the approval and the types of the customs services needed for such factory.

(Restriction on use for purposes other than those intended, etc.)

Article 10.Goods for which the customs duty is exempted pursuant to the provision of Article 4 or goods to which the reduced rate of duty set forth in paragraph (1) of Article 9 or the benefit of tariff concession set forth in paragraph (2) of the said Article is applied shall not, within two years from the date of their import permission, be used or be transferred to be used, for the purposes other than those for which customs duty is so exempted or the reduced rate of duty or the benefit of tariff concession is so applied; provided, however, that this does not apply to the case where approval is, pursuant to the provision of Cabinet Order, granted by the Director General of Customs for any unavoidable reason.

(Collection of customs duty in the case where approval of use, etc. for purposes other than those intended is granted)

Article 11.In cases where approval referred to in the proviso to the preceding Article is granted or where goods referred to in the said Article are, without such approval, used or transferred to be used for the purposes other than those provided for in the said Article, customs duty in an amount specified respectively in each of the following items for the category of goods as set forth therein shall immediately be collected from the person who has caused such situations. In this case, if there is any decrease in the value of the goods concerned due to the loss or deterioration caused as a result of their use or for any other unavoidable reason, customs duty on such goods may be reduced in the same manner as provided for in paragraph (1) of Article 10 (Reduction of customs duty in the case of deterioration or damage) of the Customs Tariff Act:
(i)goods for which customs duty is exempted pursuant to the provision of Article 4: the amount so exempted;
(ii)goods to which the reduced rate of duty referred to in paragraph (1) of Article 9 or the benefit of tariff concession referred to in paragraph (2) of the said Article is applied: the difference between the amount of customs duty calculated at the rate of duty applicable to goods not subjected to the condition of using for specific purposes and the amount of customs duty calculated at such reduced rate of duty or at the rate of duty applicable under such benefit of tariff concession.

(Uses of duty-exempt goods, etc., for purposes other than those intended)

Article 12.Article 20-3 (Uses of duty-reduced or duty-exempt goods for purposes other than those intended) of the Customs Tariff Act applies mutatis mutandis to the case where goods for which customs duty is exempted pursuant to the provision of Article 4 or to which the reduced rate of duty referred to in paragraph (1) of Article 9 or the benefit of tariff concession referred to in paragraph (2) of the said Article or paragraph (1) of Article 9-2 is granted, are used or are transferred to be used, for purposes other than those for which the customs duty is so exempted or the reduced rate of duty or the benefit of tariff concession is so granted.

(Verification of originating goods of a party under the Economic Partnership Agreement)

Article 12-2.In the case where the benefit of tariff concession is, pursuant to the provision of the Economic Partnership Agreement, applied to those goods for which import declaration is made, if verification is needed to determine whether such goods are qualified as those originating in the party to the Economic Partnership Agreement (hereinafter referred to as “originating goods of the party” in this paragraph) under the provisions of the said Agreement, the Director General of Customs may carry out verification using the following means pursuant to the provision of the said Agreement:,
(i)to request an importer of the goods concerned to submit materials which may clarify that they are qualified as the originating goods of the party;
(ii)to make inquiries with respect to such goods or to request for submission of any materials which may clarify that they are qualified as the originating goods of the party, to the competent authority of the party to the Agreement (i.e., an agent competent to issue documents which certify that the goods exported from the party to the Agreement are qualified as originating goods of the party or to authorize a person who is entitled to prepare such documents; the same applies in item (iv)), the customs authority of the party to the Agreement (i.e., an authority which enforces the laws and regulations of the party to the Agreement, equivalent to the Customs Act, the Customs Tariff Act or other Acts relating to customs duty), or to the exporter or producer of such goods;
(iii)to have the customs officials conduct, with the consent of the exporter or producer of the goods concerned, investigation of documents or other items at the office or at any other premise deemed necessary, of such exporter or producer;
(iv)to request a competent authority of the party to the Agreement for the attendance of the customs officials of Japan, with the consent of the exporter or producer of the goods concerned, on the occasion of the examination carried out by that competent authority at the office or any other premise deemed necessary, of such exporter or producer, or to request the competent authority for submission of materials collected during such examination;
(v)such other means as may be prescribed by the Economic Partnership Agreement.
(2)The inquiries or request referred to in item (ii) of the preceding paragraph shall be made in writing, specifying sufficient period of time for which the person so inquired or requested may respond to the inquiries or submit materials pertaining to such request.
(3)When the Director General of Customs have the customs officials conduct investigation referred to in item (iii) of paragraph (1), he shall notify the party to the Agreement of such investigation in writing, specifying sufficient period of time for which the party to the Agreement is required to respond whether the party consents to such investigation.
(4)The request referred to in item (iv) of paragraph (1) shall be made in writing, specifying sufficient period of time for which the party to the Agreement is required to respond whether the party accepts such request.
(5)In the case where any of the situations as set forth in the following occurs, the Director General of Customs may, pursuant to the provision of the Economic Partnership Agreement, elect not to grant the benefit of tariff concession to goods for which such benefit is sought under the provision of the Economic Partnership Agreement:
(i)where such goods do not meet the requirements for receiving such benefit of tariff concession;
(ii)where a person who imports such goods fails to take the necessary procedures for receiving such benefit of tariff concession;
(iii)in the case where the inquiries or requests referred to in item (ii) of paragraph (1) are made, if a person who is so inquired or requested fails to respond to such inquiries or to submit materials pertaining to such request within the period of time specified pursuant to the provision of paragraph (2) or if the response to the inquiries or the materials submitted in response to the request are not satisfactory;
(iv)in the case where notification referred to in paragraph (3) is made, if the party to the Agreement, or the exporter or producer of the goods pertaining to such notification refuses the investigation referred to in item (iii) of paragraph (1) or fails to respond to the notification within the period of time specified pursuant to the provision of paragraph (3);
(v)in the case where the request referred to in item (iv) of paragraph (1) is made, if the party to the Agreement refuses such request, fails to respond to the request within the period of time specified pursuant to the provision of the preceding paragraph, fails to submit materials pertaining to the request or the materials submitted in response to the request is not satisfactory;
(vi)in any other cases where the situation falls under those provided for in the Economic Partnership Agreement.
(6)When the verification prescribed in paragraph (1) has been completed, the Director General of Customs shall, pursuant to the provision of the Economic Partnership Agreement, notify the person who is the other party of such verification (limited to the person specified by the Economic Partnership Agreement) of the details of the findings (including the reason therefor).

(Special provisions for determination of goods for duty assessment pertaining to the integrated industrial area for international logistics center)

Article 13.In the case where foreign goods which are products obtained under work using customs manufacturing procedures provided for in paragraph (1) of Article 56 of the Customs Act in an integrated customs area the permission of which is given under paragraph (2) of Article 45 (Designated customs areas, etc.) of the Act on Special Measures for the Promotion and Development of Okinawa (Act No. 14 of 2002) or in a customs manufacturing warehouse the permission of which is given under paragraph (3) of the said Article, are imported on or before March 31, 2017, if it is stated in a written import declaration filed pursuant to the provision of paragraph (2) of Article 7 (Declaration) of the Customs Act or in a written special declaration provided for in paragraph (1) of Article 7-2 (Special provisions for declaration) of the said Act that application of the provision of the first sentence of paragraph (1) of Article 4 of the said Act (Date of determination of goods for duty assessment) is desired for determination of customs duty pertaining to such goods, the first sentence of the said paragraph shall, notwithstanding the provision of the proviso to the said paragraph pertaining to item (ii) of the said paragraph, apply for determination of customs duty pertaining to such goods (the customs manufacturing warehouse as used herein includes the areas which are, pursuant to the provision of paragraph (2) of Article 61-5 of the Customs Act, deemed to have been granted permission referred to in paragraph (1) of Article 56 (Permission of customs manufacturing warehouses) of the said Act upon the notification prescribed in paragraph (1) of Article 61-5 (Special Provisions for permission of customs manufacturing warehouses) of the Customs Act made by a person who is granted authorization referred to in paragraph (1) of Article 43 (Authorization of the business in the integrated industrial area for international logistics center) of the Act on Special Measures for the Promotion and Development of Okinawa (limited to authorization pertaining to the business set forth in item (ii) of the said paragraph) and which pertain to the land or facilities intended to be used for the business pertaining to such authorization, located or situated within the area of the integrated industrial area for international logistics center provided for in item (ii) of paragraph (2) of Article 41 (Preparation of a plan for industrial integration for international logistics center) of the said Act, as prescribed in a proposed plan for industrial integration for international logistics center provided for in paragraph (1) of Article 42 (Progress report, etc. on the plan of the industrial integration for international logistics center) of the said Act).
(2)The preceding paragraph shall not apply to goods designated by Cabinet Order as those to which application of the said paragraph is not appropriate in consideration of the effect on the Japanese industry, etc.

(Exemption from customs duty on personal effects of passengers departing from Okinawa Prefecture)

Article 14.In cases where a passenger departing from the district of Okinawa Prefecture for an area of Japan other than the district of Okinawa has, for personal use and within an amount prescribed by Cabinet Order, purchased goods from a retailer who is, pursuant to the provision of Cabinet Order, approved by the Director General of Customs, at the passenger terminal facility, etc. as provided for in Article 26 (Exemption from customs duty in the case where a passenger departs from the district, bringing with him imported goods) of the Act on Special Measures for the Promotion and Development of Okinawa or where such passenger has, for personal use and within an amount prescribed by Cabinet Order, purchased goods from such retailer at the specific sales facilities provided for in the said Article and has such goods delivered at the passenger terminal facility, etc., if such goods are imported at the passenger terminal facility, etc. (limited to those taken out as accompanied goods at the time of departure from the district), the customs duty chargeable shall be exempted during the period until March 31, 2017.
(2)In cases where the goods exempted from customs duty under the preceding paragraph are used for purposes other than for personal purposes or are not taken out at the time of departure from the district as provided for in the said paragraph, then customs duty exempted under the said paragraph shall immediately be collected.
(3)If a retailer who has been granted approval referred to in paragraph (1) violates the provisions of the Customs Act or other laws and regulations relating to customs duty, the Director General of Customs may revoke such approval.
(4)Formalities for exemption from customs duty prescribed in paragraph (1) and other necessary matters concerning application of the provisions of the preceding three paragraphs shall be prescribed by Cabinet Order.

(Authority of customs officials)

Article 15.Item (v) of paragraph (1) of Article 105 (Authority of customs officials pertaining to raw materials for manufacture, etc.) of the Customs Act applies mutatis mutandis to the cases where customs duty is exempted pursuant to the provision of Article 4 or where reduced rate of duty referred to in paragraph (1) of Article 9 or the benefit of tariff concession referred to in paragraph (2) of the said Article or paragraph (1) of Article 9-2 is granted. In applying this provision, in the case pertaining to paragraph (1) of Article 9, the term “goods for which customs duty is reduced or exempted” in the said item shall be read as “goods for which customs duty is reduced” and in the case pertaining to paragraph (2) of Article 9 or paragraph (1) of Article 9-2, the term “goods for which customs duty is reduced or exempted” in the said item shall be read as “goods to which the benefit of tariff concession is granted”.
(2)When a customs official performs his official duties pursuant to the provision of the preceding paragraph, he shall carry his identification card with him and shall, if requested by a person concerned, produce the identification card to such a person.
(3)The authority prescribed in paragraph (1) shall not be construed as being admitted for investigation of criminal offences.

(Penalty)

Article 16.A person who falls under any of the following items shall be punished by imprisonment with work for not more than one year or a fine not exceeding 2,000,000 yen.
(i)a person who, in violation of paragraph (6) of Article 9-2, uses raw materials for manufacture referred to in the said paragraph, or transfers such raw materials to be used, for purposes other than those intended
(ii)a person who, in violation of Article 10, uses goods referred to in the said Article, or transfers such goods to be used, for purposed other than those provided for in the said Article.

Article 17.A person who refuses, interferes with or evades examination prescribed in item (v) of paragraph (1) of Article 105 (Authority of customs official pertaining to raw materials for manufacture, etc.) of the Customs Act, as applied mutatis mutandis pursuant to paragraph (1) of Article 15 shall be punished by imprisonment with work for not more than one year or a fine not exceeding 500,000 yen.

Article 18.Where any representative of a juridical person or an agent, employee or other worker of a juridical person or of an individual has committed any of the offences set forth in the preceding two Articles in connection with the business activities or the property of the juridical person or individual, not only is the offender punished but also the juridical person or individual is punished by the fine prescribed in the said Articles.

(Investigation and disposition of criminal cases)

Article 19.Chapter 11 (Investigation and disposition of criminal cases) of the Customs Act applies mutatis mutandis to investigation and disposition of criminal cases referred to in the preceding three Articles.