Customs Act

Article 1.This Act provides for the necessary matters for proper handling of the customs procedures connected with the determination, payment, collection and refund of customs duty and the exportation and importation of goods.

(Definitions)

Article 2.For the purposes of this Act or the orders based on this Act, the definitions of the terms set forth in the following items are as prescribed respectively in these items:

(i)“importation” means bringing into Japan goods that have arrived in Japan from abroad (including marine products taken from the open sea by a foreign vessel) or goods the exportation of which has been permitted (or, with respect to goods passing through a customs area, withdrawal of these goods into Japan through a customs area);

(ii)“exportation” means sending domestic goods out to a foreign country;

(iii)“foreign goods” means goods the exportation of which has been permitted and goods that have arrived in Japan from abroad (including marine products taken from the open sea by a foreign vessel) and the import permission for which has yet to be given;

(iv)“domestic goods” means goods other than foreign goods, placed in Japan, and marine products taken from the open sea by a Japanese vessel;

(iv)-2“incidental duty” means any of such customs duties as delinquent duty, additional duty for deficient declaration, additional duty for non-declaration and heavy additional duty;

(v)“vessel engaged in foreign trade” means a vessel coming and/or going between Japan and a foreign country for the purpose of foreign trade;

(vi)“aircraft engaged in foreign trade” means an aircraft coming and/or going between Japan and a foreign country for the purpose of foreign trade;

(vii)“coastal vessel” means a vessel other than a vessel coming and/or going between Japan and a foreign country;

(viii)“domestic aircraft” means an aircraft other than an aircraft coming and/or going between Japan and a foreign country;

(ix)“vessel’s stores” means fuel, beverages, foods and other consumable goods, sailcloth, rope, utensils and other similar goods that are used on board a vessel;

(x)“aircraft’s stores” means goods equivalent to vessel’s stores, used on board an aircraft;

(xi)“open port” means a port designated by Cabinet Order, taking into account exportation and importation of goods, entry and departure of vessels engaged in foreign trade and other circumstances;

(xii)“customs airport” means an airport designated by Cabinet Order, taking into account exportation and importation of goods, entry and departure of aircraft engaged in foreign trade and other circumstances;

(xiii)“closed port” means a seaport, airport or any other place used in lieu thereof, other than an open port and customs airport.

(2)Marine products taken from the open sea as provided for in items (i), (iii) and (iv) of the preceding paragraph include marine products taken from the waters within the exclusive economic zone of Japan and from the waters within the exclusive economic zone of a foreign country.

(3)If foreign goods are used or consumed in Japan prior to their importation (excluding when foreign goods are used or consumed in a customs area in accordance with the provisions of this Act or any other cases as may be prescribed by Cabinet Order), they are deemed to be imported, at the time of that use or consumption, by a person who uses or consumes these goods.

Section 2 Period and Time Limit

(Special provisions for calculation of period and for time limit)

Article 2-2.Article 10 (Special provisions for calculation of period and for time limit) of the Act on General Rules for National Taxes (Act No. 66 of 1962) applies mutatis mutandis to calculation of period and to time limit under the provisions of this Act, the Customs Tariff Act (Act No. 54 of 1910) and other laws concerning customs duty.

(Extension of time limit due to a disaster, etc.)

Article 2-3.The Minister of Finance or the Director General of Customs, if it is found that, due to a disaster or for any other unavoidable reason (hereinafter in this Article and Article 102-2 referred to as “disaster, etc.”), any application, request, notification, submission of documents, payment or collection, based on this Act, the Customs Tariff Act or any other laws concerning customs duty is unable to be made within its time limit, may, pursuant to the provisions of Cabinet Order, extend the time limit for up to two months from the day on which the disaster, etc. ceases.

Section 3 Service of Documents

Article 2-4.Articles 12 (Service of documents) and 14 (Service by publication) of the Act on General Rules for National Taxes apply mutatis mutandis to the service of documents issued by the Director General of Customs or customs officials pursuant to the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty. In this case, the term “agent for tax payment” in the proviso to paragraph (1) and in paragraph (3) of Article 12 of the Act on General Rules for National Taxes is deemed to be replaced with “administrator of customs matters provided for in paragraph (1) of Article 95 (Administrator of customs matters) of the Customs Act”.

Chapter 2 Determination, Payment, Collection and Refund of Customs Duty

Section 1 General Rules

(Dutiable items)

Article 3.Customs duty is levied on imported goods (excluding correspondence) under this Act, the Customs Tariff Act and other laws concerning customs duty; provided, however, that if any convention provides special provisions for customs duty, these special provisions apply.

(Timing of determination for duty assessment of dutiable items)

Article 4.The nature and quantity of goods to be taken as a basis for assessment of customs duty are established by the conditions of the goods at the time of their import declaration; provided, however, that for the goods set forth in the following items, the nature and quantity are established by the conditions of the goods at the time as specified therein:

(i)foreign goods stored in a customs warehouse or in an integrated customs area (excluding foreign goods prescribed by Cabinet Order as those usually stored in a customs warehouse or in an integrated customs area over a long period, resulting in any loss while they are so stored, foreign goods on which any of the acts set forth in item (ii) or (iii) of paragraph (1) of Article 62-8 (Permission of an integrated customs area) has been performed in an integrated customs area, foreign goods disposed of upon notification to the customs pursuant to the provisions of Article 34 (Disposal of foreign goods) and foreign goods set forth in items (ii) to (iii)-2, (vii) and (viii)): at the time when storage in a customs warehouse or in an integrated customs area is approved pursuant to the provisions of paragraph (1) of Article 43-3 (Approval for storage of foreign goods) or Article 62-10 (Approval for storage, etc. of foreign goods);

(ii)foreign goods that are products manufactured in a customs factory or in an integrated customs area through operations under customs procedures as provided for in paragraph (1) of Article 56 (Permission of a customs factory) (excluding foreign goods set forth in items (vii) and (viii) and those prescribed by Cabinet Order): at the time when approval for storage of foreign goods that are raw materials for the products in a customs factory or in an integrated customs area is given pursuant to the provisions of paragraph (1) of Article 43-3, as applied mutatis mutandis pursuant to Article 61-4 or Article 62-10, or at the time when approval for use of the foreign goods in a customs factory for operations under customs procedures or approval for performance of the acts set forth in item (ii) of paragraph (1) of Article 62-8 on the foreign goods in an integrated customs area is given;

(iii)foreign goods stored at a place designated pursuant to the provisions of paragraph (1) of Article 61 (Operations under customs procedures performed outside a customs factory) or Article 62-5 (Permission for use outside a customs exhibition site) (including the cases where applied mutatis mutandis pursuant to Article 62-15) after expiry of the period specified under these provisions (excluding foreign goods set forth in items (ii), (iii)-2, (vii) and (viii)): at the time when permission prescribed in these provisions is given;

(iii)-2foreign goods brought into a customs exhibition site or into an integrated customs area, intended for sale or consumption in the customs exhibition site or in the integrated customs area, products obtained through processing of, or manufacturing from foreign goods in a customs exhibition site (excluding products prescribed by Cabinet Order) and such other similar goods as may be prescribed by Cabinet Order (excluding those disposed of upon notification to the customs pursuant to the provisions of Article 34 and those set forth in items (ii), (vii) and (viii)): at the time when approval prescribed in paragraph (1) of Article 62-3 (Procedures for bringing foreign goods into a customs exhibition site) is given or at the time when a notification prescribed in Article 62-11 (Notification of bringing goods for sale, etc.) is made;

(iii)-3foreign goods that have been brought into a customs exhibition site and for which customs duty is collected pursuant to the provisions of paragraph (1) of Article 62-6 (Collection of customs duty on foreign goods that remain in a customs exhibition site after expiry of period of permission) (excluding those set forth in items (ii), (iii)-2, (vii) and (viii)): at the time when grounds for collection of the customs duty arise;

(iv)foreign goods stored in a customs area or foreign goods the permission of which has been given by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Restrictions on places for storage of foreign goods), if these foreign goods have been lost or destroyed (excluding those set forth in items (i), (ii), (iii)-2, (v), (v)-2 and (viii)): at the time when they are lost or destroyed;

(v)vessel’s or aircraft’s stores withdrawn from a customs area after approval for loading has been given pursuant to the provisions of paragraph (1) of Article 23 (Loading, etc. of vessel’s or aircraft’s stores), but not loaded on board a vessel or aircraft within a designated period for loading or foreign goods transported after approval for transportation has been given pursuant to the provisions of paragraph (1) of Article 63 (Customs transit) or paragraph (1) of Article 64 (Transportation of wreckage, etc.), but not arrived at their destination within the designated period for transportation (excluding those set forth in items (i), (ii), (iii)-2, (vii) and (viii)): at the time when loading or transportation is approved (or, if blanket approval for loading has been given pursuant to the provisions of the second sentence of paragraph (1) of Article 23, at the time when foreign goods subject to the approval are withdrawn from a customs area and if blanket approval for transportation has been given pursuant to the provisions of the second sentence of paragraph (1) of Article 63, at the time when foreign goods subject to the approval are shipped out);

(v)-2foreign goods subject to specific customs transit provided for in paragraph (1) of Article 63-2 (Special provisions for customs transit) or postal items transported upon notification pursuant to the provisions of paragraph (1) of Article 63-9 (Customs transit of postal items) if they do not arrive at their destination within a period specified in paragraph (2) of Article 65 (Collection of customs duty due to expiry of transportation period) or paragraph (1) of Article 65-2 (Collection of customs duty on postal items not arriving at their destination) (excluding those set forth in items (i), (ii), (iii)-2, (vii) and (viii)): at the time when the foreign goods or the postal items subject to transportation prescribed in paragraph (1) of Article 63-9 are shipped out;

(v)-3goods for which import declaration has been made in accordance with item (iii) of paragraph (3) of Article 67-2 (Procedures for export or import declaration) and for which import permission has been given (excluding those set forth in items (i), (ii), (iii)-2, (v) and (v)-2): at the time of their import permission;

(vi)postal items that have been presented under paragraph (3) of Article 76 (Simplified export or import procedures for postal items) (excluding postal items for which the value to be taken as a basis for duty assessment exceeds 200,000 yen (other than gifts or other goods prescribed by Cabinet Order) and those set forth in items (i), (v)-2 and (vii)): at the time of their presentation;

(vii)goods taken into custody or detained or objects seized or retained, if they are offered for public auction or are sold under negotiated contract: at the time when they are so offered or sold;

(viii)goods imported without having obtained import permission or postal items imported without having been presented as prescribed in paragraph (3) of Article 76 (excluding those for which import declaration has been made and those set forth in the preceding item): at the time of their importation.

(2)Necessary matters concerning calculation of amount of customs duty when goods set forth in item (ii) of the preceding paragraph are imported are prescribed by Cabinet Order.

(Applicable laws and regulations)

Article 5.The laws and regulations to be applied when customs duty is levied (including the cases where provision of security is ordered pursuant to the provisions of paragraph (10) of Article 7 (Countervailing duty) or item (ii) of paragraph (9) and paragraph (18) of Article 8 (Anti-dumping duty), of the Customs Tariff Act) are those laws and regulations applicable on the date of import declaration; provided, however, that goods set forth in the following items are subject to the laws and regulations applicable on the day as specified respectively in these items:

(i)goods set forth in items (iii) and (iii)-3 to (viii) of paragraph (1) of the preceding Article (for goods set forth in items (iii) and (iii)-3 of that paragraph, goods set forth in items (ii) and (iii)-2 thereof are not excluded, and for goods set forth in items (iv) and (v) of that paragraph, goods set forth in items (i), (ii) and (iii)-2 thereof are not excluded): the day that includes the time specified in the relevant item;

(ii)foreign goods stored in a customs warehouse or in an integrated customs area or foreign goods that are products manufactured in a customs factory or in an integrated customs area through operations under customs procedures provided for in paragraph (1) of Article 56 (Permission of a customs factory), if the applicable laws and regulations have been amended after import declaration was made, but before import permission is given for these goods (or, approval instead of import permission for 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)) (excluding goods set forth in item (iv) or (vii) of paragraph (1) of the preceding Article): the day on which the permission or the approval is given.

(A person liable to pay customs duty)

Article 6.Except as otherwise provided for in this Act, the Customs Tariff Act or other laws concerning customs duty, a person who imports goods is liable to pay customs duty.

(Systems for determining amount of duty)

Article 6-2.The amount of customs duty is to be determined by applying the system as specified in each of the following items for the category of customs duty as set forth respectively therein:

(i)(i) customs duty other than the customs duty set forth in the next item: the system under which the amount of customs duty payable or the fact that there is no amount of customs duty payable is determined, in principle, by a declaration made by a person liable to pay customs duty, and only if a declaration is not so made or if calculation of the amount of customs duty so declared is not consistent with the provisions of the laws concerning customs duty or otherwise if the amount of customs duty so declared is different from that found as a result of investigation conducted by the Director General of Customs, the amount of customs duty payable is determined by disposition made by the Director General of Customs (hereinafter referred to as “self-assessment system”);

(ii)(ii) customs duty set forth in the following: the system under which the amount of customs duty payable is determined exclusively by disposition made by the Director General of Customs (hereinafter referred to as “official assessment system”):

(a)customs duty levied on goods imported, as accompanied goods, by a person at the time of entry into Japan or goods that a person entering Japan imports by sending as unaccompanied goods pursuant to the provisions of Cabinet Order, or on other similar goods prescribed by Cabinet Order;

(b)customs duty levied on postal items (excluding postal items for which the value to be taken as a basis for duty assessment exceeds 200,000 yen (other than gifts and other goods prescribed by Cabinet Order) and postal items involved in a case prescribed by Cabinet Order, as referred to in paragraph (3) of Article 76 (Simplified export or import procedures for postal items));

(c)customs duty imposed pursuant to the provisions of paragraph (3) of Article 7 (Countervailing duty) or paragraph (2) of Article 8 (Anti-dumping duty), of the Customs Tariff Act, or customs duty imposed pursuant to the provisions of paragraph (1) of Article 8 of that Act, which is altered or maintained pursuant to the provisions of paragraph (16) of that Article (limited to customs duty imposed on goods imported within the investigation period provided for in paragraph (15) of that Article; the same applies in Articles 12 and 14);

(d)customs duty to be immediately collected pursuant to the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty if a certain event occurs;

(e)customs duty the amount of which is to be determined under the official assessment system pursuant to the provisions of laws concerning customs duty other than this Act and the Customs Tariff Act;

(f)additional duty for deficient declaration, additional duty for non-declaration and heavy additional duty.

(2)Notwithstanding the provisions of the preceding paragraph, the amount of delinquent duty provided for in paragraph (1) of Article 12 (Delinquent duty) is to be determined pursuant to the provisions of that Article without recourse to any special procedures.

(Timing of filing of a written declaration, etc. related to postal mail, etc.）

Article 6-3.Article 22 (Timing of filing of tax return, etc. related to postal mail, etc.) of the Act on General Rules for National Taxes applies mutatis mutandis if any documents associated with declaration, request or application (including a document required to be attached to these documents and a document to be submitted in connection with submission of these documents), as prescribed in paragraph (1) of the next Article, paragraph (1) of Article 7-14 (Amended declaration), paragraph (1) of Article 7-15 (Request for reassessment), paragraphs (1) to (3) of Article 9-2 (Extension of time limit for payment) or Article 67 (Export or import permission) or any other document prescribed by the Ministry of Finance Order are submitted by postal mail or correspondence delivery (i.e., correspondence delivery provided for in paragraph (2) of Article 2 (Definitions) of the Act on Correspondence Delivery by Private Business Operators (Act No. 99 of 2002), conducted by general or specified correspondence delivery business operators provided for respectively in paragraph (6) or (9) of that Article).

Section 2 Determination of Customs Duty under the Self-Assessment System

(Declaration)

Article 7.A person who seeks to import goods to which the self-assessment system applies shall file with the Director General of Customs a declaration for payment of customs duty for these goods.

(2)Pursuant to the provisions of Cabinet Order, the relevant person is to file the declaration referred to in the preceding paragraph with the Director General of Customs, by stating, in a written import declaration based on Article 67 (Export or import permission), the basis for duty assessment for the goods and other matters required to be stated pursuant to the provisions of that Article, together with the amount of duty payable and other necessary matters.

(3)If the customs is requested by a person liable to pay customs duty or any other person concerned to provide information that the person need for a declaration referred to in paragraph (1), such as the commodity code for the purpose of application of Appended Table of the Customs Tariff Act (the Tariff Schedule), the applicable rate of duty and the basis for duty assessment for imported goods, the customs is to endeavor to provide that person with pertinent information.

(Special provisions for declaration)

Article 7-2.A person who seeks to import goods and has in advance obtained approval of any of the Directors General of Customs (hereinafter referred to as “authorized importer”) or a person who has entrusted customs clearance procedures for importing these goods (i.e., customs clearance procedures provided for in item (i)(a)[1］of Article 2 (Definitions) of the Customs Brokerage Act (Act No. 122 of 1967); hereinafter the same applies) to an authorized customs broker (i.e., an authorized customs broker provided for in Article 79-2 (Improvement measures relating to a rule, etc.); the same applies in paragraph (1) of Article 63-2, item (iii)(a) of paragraph (1) of Article 63-7 and item (ii) of paragraph (1) of Article 67-3) (hereinafter the person who has so entrusted is referred to as “special entrusting importer”) may, notwithstanding the provisions of paragraph (2) of the preceding Article, make a declaration referred to in paragraph (1) of that Article with respect to goods to which the self-assessment system applies by filing with the Director General of Customs a written declaration, stating the basis for duty assessment, the amount of customs duty payable and other necessary matters related to the goods (hereinafter referred to as “written special declaration”).

(2)When a person makes a special declaration (i.e., a declaration that is made by filing a written special declaration, as referred to in paragraph (1) of the preceding Article; hereinafter the same applies), that person shall prepare a written special declaration for the goods subject to that declaration (hereinafter referred to as “specially declared goods”) the importation of which has been permitted and shall file that written declaration with the Director General of Customs who has given the permission, on or before the last day of the month following the month that includes the date of the import permission.

(3)A written special declaration filed pursuant to the provisions of the preceding paragraph is referred to as “written special declaration meeting time limit”.

(4)Paragraph (1) does not apply to goods set forth in Appended Table 1-6 of the Temporary Customs Tariff Measures Act (Act No. 36 of 1960) or to other goods prescribed by Cabinet Order.

(5)A person who seeks the approval referred to in paragraph (1) shall file with the Director General of Customs a written application stating the domicile or residence, name and other necessary matters.

(6)Matters to be stated in a written special declaration and other necessary matters concerning application of the preceding paragraphs are prescribed by Cabinet Order.

(Cases in which a special declaration is deemed to have been chosen)

Article 7-3.An authorized importer or a special entrusting importer who has not made a declaration prescribed in paragraph (2) of Article 7 (Declaration) simultaneously with an import declaration is deemed to have chosen to make a special declaration for goods subject to that import declaration (excluding goods provided for in paragraph (4) of the preceding Article).

(Special declaration after time limit)

Article 7-4.A person who is required to have filed a written special declaration meeting time limit (i.e., an authorized importer or a special entrusting importer who fails to file a written special declaration within the time limit for filing, including the heir or, in the case of a juridical person that has ceased to exist as a result of merger, a juridical person that survives the merger or a juridical person that has been established as a result of the merger) may, even after the time limit for filing, file with the Director General of Customs referred to in paragraph (2) of Article 7-2 (Special provisions for declaration) a written special declaration, stating the matters required to be stated in a written special declaration meeting time limit if it is filed before determination prescribed in paragraph (2) of Article 7-16 (Determination) is made.

(2)A written special declaration to be filed pursuant to the provisions of the preceding paragraph is referred to as “written special declaration after time limit”.

(Requirements for approval)

Article 7-5.When a written application prescribed in paragraph (5) of Article 7-2 (Special provisions for declaration) has been filed, if the situation falls under any of the following items, the Director General of Customs may elect not to give the approval referred to in paragraph (1) of that Article:

(i)if a person who seeks the approval falls under any of the following:

(a)if the person was sentenced to a penalty in violation of the provisions of this Act or other laws concerning national taxes or was subject to a disposition of administrative notification pursuant to the provisions of this Act (including the cases where applied mutatis mutandis pursuant to other laws concerning customs duty) or the Act on General Rules for National Taxes, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed, or on which the matters indicated in the notification were performed;

(b)if the person was sentenced to imprisonment without work or heavier penalty in violation of the provisions of the laws and regulations other than the laws provided for in item (a), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(c)if the person was sentenced to a fine in violation of the provisions of the Act on Prevention of Unjust Acts by Organized Crime Group Members (Act No. 77 of 1991) (excluding paragraph (7) of Article 32-3 (Prefectural center for the elimination of violence) and paragraph (1) of Article 32-11 (Reporting and on-site investigation) of that Act; hereinafter the same applies) or for having committed the offense referred to in Article 204 (Injury), Article 206 (Incitement of injury), Article 208 (Assault), paragraph (1) of Article 208-2 (Unlawful assembly with weapons), Article 222 (Intimidation) or Article 247 (Breach of trust), of the Penal Code (Act No. 45 of 1907) or the offense referred to in the Act on Punishment of Physical Violence and Other Acts (Act No. 60 of 1926), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(d)if the person is a member of an organized crime group provided for in item (vi) of Article 2 (Definitions) of the Act on Prevention of Unjust Acts by Organized Crime Group Members (hereinafter referred to as “member of an organized crime group” in this item), or if the person was a member of an organized crime group and a period of five years has not elapsed from the day on which the person ceased to be a member of the organized crime group (hereinafter referred to as “member of an organized crime group, etc.”);

(e)if the person is a juridical person whose officer falls under any of items (a) to (d) with respect to the business, or if the person uses such an officer as an agent, employee or other worker;

(f)if the person’s business activities are controlled by a member of an organized crime group, etc.;

(g)if, during a period of three years preceding the day on which application for approval is made, the person was imposed heavy additional duty in connection with customs duty or heavy additional tax in connection with consumption tax or local consumption tax on imported goods, as prescribed in paragraph (1) or (2) of Article 12-4 (Heavy additional duty) of this Act or paragraph (1) or (2) of Article 68 (Heavy additional tax) of the Act on General Rules for National Taxes;

(h)if, during a period of three years preceding the day on which application for approval is made, the person was delinquent in paying 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); hereinafter the same applies) or local consumption tax levied on imported goods;

(i)if a period of three years has not elapsed from the day on which approval given to the person under paragraph (1) of Article 7-2 was revoked pursuant to the provisions of item (i)(c), (i)(d) or (i)(f) or item (ii), of paragraph (1) of Article 7-12 (Revocation of approval);

(ii)if a person who seeks approval does not have the ability to make a special declaration by means of electronic data processing system (i.e., the electronic data processing system provided for in item (i) of Article 2 (Definitions) of the Act on Processing, etc. of Business Related to Import and Export by Means of Electronic Data Processing System (Act No. 54 of 1977); hereinafter the same applies) or is otherwise not able to properly and surely conduct the import business relating to specially declared goods;

(iii)if a person who seeks approval fails to establish, with respect to the import business relating to specially declared goods, a rule covering the matters prescribed by the Ministry of Finance Order as those for ensuring that the person (in the case of a juridical person, including its officers), the agent, manager or other employee complies with the provisions of this Act and other laws and regulations.

(Improvement measures relating to a rule, etc.)

Article 7-6.If the Director General of Customs finds it necessary in order to ensure the implementation of this Act for the reason that an authorized importer fails to make a special declaration in accordance with the provisions of this Act or for other reason, the Director General of Customs may request the authorized importer to take necessary measures to improve the rule provided for in item (iii) of the preceding Article or the performance of business activities in connection with the matters specified in that rule, or to newly establish a rule provided for in that item.

Article 7-7.Deleted.

(Provision of security)

Article 7-8.If the Director General of Customs finds it necessary in order to preserve customs duty, internal consumption tax or local consumption tax (hereinafter referred to as “customs duty and other taxes” in this paragraph and paragraph (2) of Article 7-11), the Director General of Customs may, pursuant to the provisions of Cabinet Order, order an authorized importer or a special entrusting importer to provide security for customs duty and other taxes, specifying its amount and period.

(2)The Director General of Customs, if it is found necessary, may change the amount or period referred to in the preceding paragraph.

(Keeping of books, etc. by an authorized importer)

Article 7-9.An authorized importer shall, pursuant to the provisions of Cabinet Order, keep books stating the descriptions, quantities and prices of specially declared goods and other necessary matters (hereinafter referred to as “books relating to special imports and customs duty”) and preserve these books and documents prepared or received in connection with transactions of these goods and other documents prescribed by Cabinet Order (hereinafter referred to as “documents relating to special imports and customs duty”).

(2)Articles 94-2 to 94-6 (Preservation, etc. of books and documents relating to customs duty by means of electronic or magnetic records; Preservation, etc. of books and documents relating to customs duty by means of computer-output microfilms; Exclusion from application of the Act on the Use of Information and Communication Technology in the Preservation of Documents by Private Business Operators, Etc.; Preservation of electronic or magnetic records relating to information on electronic transactions; Application of provisions of laws concerning customs duty) apply mutatis mutandis to books relating to special imports and customs duty kept and preserved by an authorized importer, documents relating to special imports and customs duty preserved by an authorized importer and electronic transactions provided for in Article 94-5, performed by an authorized importer. In this case, the term “the electronic or magnetic records” in paragraph (1) of Article 94-2 is deemed to be replaced with “the electronic or magnetic records (i.e., records that are processed by electronic methods, magnetic methods or other method that cannot be perceived by the human senses and are intended for use in data processing by computer; hereinafter the same applies)” and the term “computer-output microfilms” in paragraph (1) of Article 94-3 is deemed to be replaced with “computer-output microfilms (i.e., microfilms created by outputting electronic or magnetic records, using a computer; hereinafter the same applies)”.

(Notification of discontinuance of application of special provisions for declaration)

Article 7-10.If an authorized importer no longer needs the application of paragraph (1) of Article 7-2 (Special provisions for declaration), the importer may, pursuant to the provisions of Cabinet Order, notify the Director General of Customs who has given the approval referred to in that paragraph thereof.

(Invalidation of approval)

Article 7-11.The approval referred to in paragraph (1) of Article 7-2 (Special provisions for declaration) ceases to be effective if any of the situations as set forth in the following items occurs:

(i)when the notification prescribed in the preceding Article is submitted;

(ii)when, after an authorized importer has died, an application prescribed in paragraph (2) of Article 48-2 (Succession of permission), as applied mutatis mutandis pursuant to Article 7-13 (Mutatis mutandis application of provisions on succession of permission) is not made within the period specified in paragraph (2) of Article 48-2 or a disposition not to give the approval referred to in that paragraph is made;

(iii)when an authorized importer is dissolved;

(iv)when an authorized importer receives a ruling for commencement of bankruptcy proceedings;

(v)when the Director General of Customs revokes the approval.

(2)If the approval referred to in paragraph (1) of Article 7-2 has ceased to be effective, a person who has been given the approval or the heir (if a juridical person that has been given the approval has ceased to exist as a result of merger, then the juridical person that survives the merger or the juridical person that has been established as a result of the merger) may not be exempted from the obligation of filing of a special declaration for specially declared goods for which import permission was given before the approval ceased to be effective, the obligation of payment of customs duty and other taxes to be levied or to be paid for such goods and the obligation of keeping of, and recording in books relating to special imports and customs duty and preservation of books and documents relating to special imports and customs duty, as prescribed in paragraph (1) of Article 7-9 (Keeping of books, etc. by an authorized importer).

(Revocation of approval)

Article 7-12.The Director General of Customs, if the situation falls under any of the following items, may revoke the approval referred to in paragraph (1) of Article 7-2 (Special provisions for declaration):

(i)when an authorized importer falls under any of the following:

(a)when the importer has had a heavy additional duty under paragraph (1) or (2) of Article 12-4 (Heavy additional duty) or a heavy additional tax under paragraph (1) or (2) of Article 68 (Heavy additional tax) of the Act on General Rules for National Taxes imposed in connection with customs duty or in connection with consumption tax or local consumption tax on imported goods;

(b)when the importer is delinquent in paying customs duty or in paying internal consumption tax or local consumption tax on imported goods;

(c)when the importer fails to file, within the time limit for filing, a written special declaration or a written special tax return provided for in paragraph (2) of Article 6 (Special provisions for declaration, tax payment, etc. for taxable goods to be withdrawn) of the Act on Collection, etc. of Internal Consumption Tax on Imported Goods;

(d)when the importer fails to comply with the order prescribed in paragraph (1) of Article 7-8 (Provision of security);

(e)when the importer falls under any of items (i)(a) to (i)(f) or item (ii) of Article 7-5 (Requirements for approval);

(f)when the importer fails to respond to the request of the Director General of Customs as prescribed in Article 7-6 (Improvement measures relating to a rule, etc.);

(ii)when keeping of, or recording in books relating to special imports and customs duty or preservation of books and documents relating to special imports and customs duty, as prescribed in paragraph (1) of Article 7-9 (Keeping of books, etc. by an authorized importer) is not made in the manner prescribed by Cabinet Order as provided for in that paragraph, or any false statement is recorded in these books or documents.

(2)Necessary matters concerning procedures for revocation of approval prescribed in the preceding paragraph and other necessary matters concerning application of that paragraph are prescribed by Cabinet Order.

(Mutatis mutandis application of provisions on succession of permission)

Article 7-13.Paragraphs (1) to (5) of Article 48-2 (Succession of permission) apply mutatis mutandis to an authorized importer. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

(Amended declaration)

Article 7-14.If any of the situations as set forth in the following items occurs, a person who has made a declaration referred to in paragraph (1) of Article 7 (Declaration) or a person who has received a determination prescribed in paragraph (2) of Article 7-16 (Determination) may, pursuant to the provisions of Cabinet Order, make a declaration for amending the basis for duty assessment or the amount of duty payable (hereinafter referred to as “amount of duty, etc.”) associated with the declaration, reassessment or determination referred to in these items (hereinafter referred to as “amended declaration”) by the time the reassessment prescribed in paragraph (1) or (3) of Article 7-16 (Reassessment) (hereinafter in this paragraph and in the next Article referred to as “reassessment”) is made with respect to that declaration, reassessment or determination:

(i)when any shortfall is found in the amount of duty to be paid on the basis of the declaration for duty payment previously made (i.e., a declaration referred to in paragraph (1) of Article 7 or an amended declaration; hereinafter the same applies), the reassessment or the determination prescribed in paragraph (2) of Article 7-16;

(ii)when an amount of duty to be paid is found in the situation where it has been established, on the basis of the declaration for duty payment previously made, the reassessment or the determination prescribed in paragraph (2) of Article 7-16, that there was no amount of duty to be paid.

(2)In the case referred to in the preceding paragraph, an amended declaration that has been made prior to import permission for goods subject to the declaration for duty payment may be made through adjustment of the amount of duty, etc. stated in a document associated with the declaration for duty payment previously made.

(3)Article 20 (Validity of amended return) of the Act on General Rules for National Taxes applies mutatis mutandis to an amended declaration.

(Request for reassessment)

Article 7-15.If the amount of duty to be paid on the basis of a declaration for duty payment (or, if reassessment has been made with respect to that amount of duty, the amount of duty so reassessed) is overestimated for the reason that calculation of the amount of duty, etc. under the declaration was not made in accordance with the provisions of the laws concerning customs duty or due to any error in the calculation, a person who has made the declaration for duty payment may, pursuant to the provisions of Cabinet Order, file with the Director General of Customs a request for reassessment to be made on the amount of duty, etc. under the declaration (or, if reassessment has been made with respect to the amount of duty, etc., the amount of duty, etc. so reassessed), provided that the request is made before import permission for the goods subject to the declaration is given or within five years from the date of that import permission (with respect to specially declared goods, within five years from the time limit for filing of a written special declaration) (in the case of a person who has been given 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), within the period until the date on which a period of five years elapses from the day following the date of that approval or the date of import permission, whichever comes later).

(2)The Director General of Customs, if request for reassessment prescribed in the preceding paragraph (hereinafter referred to as “request for reassessment”) has been made, reviews the amount of duty, etc. subject to the request, and either makes reassessment or notifies a person who has made the request that there are no grounds for making reassessment.

(Reassessment and determination)

Article 7-16.When a declaration for duty payment has been made, if the amount of duty, etc. declared has not been calculated in accordance with the provisions of the laws concerning customs duty or otherwise if the amount of duty, etc. declared is different from that found as a result of an examination, the Director General of Customs reassesses the declared amount of duty, etc. on the basis of the examination.

(2)If a declaration for duty payment has not been made by the time of importation of goods for which the declaration is required (with respect to specially declared goods, before expiry of the time limit for filing of a written special declaration), the Director General of Customs determines the amount of duty, etc. for these goods on the basis of an examination.

(3)If, after the reassessment or determination prescribed in the preceding two paragraphs or this paragraph has been made, it is found that the amount of duty, etc. so reassessed or determined is overestimated or underestimated, the Director General of Customs reassesses the amount of duty, etc. so reassessed or determined, on the basis of an examination.

(4)Reassessment prescribed in paragraph (1) or the preceding paragraph (hereinafter referred to as “reassessment”, except in Section 2 of Chapter 11 (Disposition of Criminal Cases)) or determination prescribed in paragraph (2) is made by the Director General of Customs through delivery of a written notice of reassessment or a written notice of determination, stating the basis for duty assessment under that reassessment or determination, the amount of duty payable as a result of the reassessment or determination and other matters prescribed by Cabinet Order; provided, however, that the reassessment made prior to import permission of the goods subject to the declaration for duty payment (limited to reassessment made before payment of customs duty on these goods in order to reduce the amount of duty, etc. payable) may be effectuated, in lieu of the procedures specified above, by requesting a person who has made the declaration to rectify the amount of duty, etc. stated in the document associated with the declaration for duty payment or by notifying that person of the amount of duty, etc. rectified by the Director General of Customs.

(5)Article 29 (Validity of reassessment, etc.) of the Act on General Rules for National Taxes applies mutatis mutandis to the reassessment or the determination prescribed in paragraph (2).

(Notification of amount of duty, etc. for goods withdrawn prior to import permission)

Article 7-17.If it is found that there is no error in a declaration for duty payment with respect to the amount of duty, etc. for 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), the Director General of Customs notifies in writing a person who has obtained the approval of withdrawal, of the amount of duty under the declaration, the requirement to pay the amount of duty (or, if no customs duty is required to be paid, that fact) and other matters prescribed by Cabinet Order.

Section 3 Determination of Customs Duty under the Official Assessment System

Article 8.When the Director General of Customs seeks to assess customs duty for goods to which the official assessment system applies, the Director General of Customs is to determine, on the basis of an examination, the matters as specified in each of the following items for the category of cases as set forth respectively therein:

(i)for customs duty as set forth in item (ii)(a) or (ii)(e) of paragraph (1) of Article 6-2 (Systems for determining amount of duty):

(a)if the basis for duty assessment stated in the import declaration referred to in Article 67 (Export or import permission) is the same as the result of the examination conducted by the Director General of Customs: the amount of duty payable;

(b)if the import declaration referred to in Article 67 has not been made by the time of importation or if, when that declaration has been made, the basis for duty assessment stated in that declaration is different from that found as a result of the examination conducted by the Director General of Customs: the basis for duty assessment and the amount of duty payable;

(ii)for customs duty as set forth in items (ii)(b) to (ii)(d) of paragraph (1) of Article 6-2: the basis for duty assessment and the amount of duty payable.

(2)If the Director General of Customs seeks to impose additional duty for deficient declaration, additional duty for non-declaration or heavy additional duty, as set forth in item (ii)(f) of paragraph (1) of Article 6-2, the Director General of Customs is to determine, on the basis of the examination, the amount of duty that is taken as a basis for calculation of the amount of the additional duty for deficient declaration, additional duty for non-declaration or heavy additional duty and the amount of duty payable.

(3)If the Director General of Customs, after having made the determination prescribed in the preceding two paragraphs or this paragraph, finds that the basis for duty assessment so determined (in the case set forth in item (i)(a) of paragraph (1), the basis for duty assessment stated in the declaration referred to in that item, and in the case provided for in the preceding paragraph, the amount of duty that is taken as a basis for calculation prescribed in that paragraph; hereinafter the same applies in this Article) or the payable amount of duty so determined is overestimated or underestimated, the Director General of Customs is to make a determination to alter the determined basis for duty assessment or the amount of duty payable, on the basis of an examination.

(4)The determination prescribed in the preceding three paragraphs is made by the Director General of Customs through delivery of a written notice of official assessment determination (in the case set forth in item (i)(a) of paragraph (1), a written notice of duty payment), stating the basis for duty assessment and the amount of duty payable that have been determined and other matters prescribed by Cabinet Order; provided, however, that if the determination relates to customs duty set forth in item (ii)(a) of paragraph (1) of Article 6-2 or in other cases prescribed by Cabinet Order, the Director General of Customs may, instead of delivery of the written notice, have customs officials notify the determination orally.

(5)Article 29 (Validity of reassessment, etc.) of the Act on General Rules for National Taxes applies mutatis mutandis to the determination prescribed in paragraph (3).

Section 4 Payment and Collection of Customs Duty

(Payment of customs duty, etc. under the self-assessment system)

Article 9.Except in the case falling under the next paragraph, a person who has made a declaration for duty payment shall pay the Government customs duty in an amount equivalent to the amount of duty payable as stated in a document related to the declaration or in a written notice of reassessment, on or before the date of import of goods subject to the declaration.

(2)A person liable to pay customs duty in an amount equivalent to the amount of duty set forth in the following items shall pay the customs duty to the Government on or before the date or within the time limit, as set forth in these items:

(i)the amount of duty payable as stated in a written special declaration meeting time limit: the time limit for filing of a written special declaration;

(ii)the amount of duty payable as stated in a written special declaration after time limit: the date of filing of the written special declaration after time limit;

(iii)with respect to customs duty for 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), the declared amount of duty as stated in the document referred to in Article 7-17 (Notification of amount of duty, etc. for goods withdrawn prior to import permission) or the amount of duty payable as stated in a written notice of reassessment related to the reassessment made before import permission for these goods (including any unpaid amount of duty under the previous declaration of duty payment): the date on which one month elapses from the day following the date on which the document or written notice is issued;

(iv)the amount of duty payable as stated in a document for an amended declaration made after import permission: the date on which the amended declaration is made;

(v)the amount of duty payable as stated in a written notice of reassessment related to reassessment made after import permission: the date on which one-month elapses from the day following the date on which the written notice of reassessment is issued;

(vi)(vi) the amount of duty payable as stated in a written notice of determination: the date on which one-month elapses from the day following the date on which the written notice of determination is issued;

(vii)the amount of duty payable as stated in a written notice of reassessment related to reassessment made after the determination prescribed in paragraph (2) of Article 7-16 (Reassessment and determination) was made: the date on which one-month elapses from the day following the date on which the written notice of reassessment is issued.

(3)A person who has received a written notice of official assessment determination concerning the additional duty for deficient declaration or the heavy additional duty referred to in paragraph (1), (3) or (4) of Article 12-4 (Heavy additional duty) (with respect to paragraph (4), limited to the provisions concerning the heavy additional duty referred to in paragraph (1) of that Article) (hereinafter referred to as “heavy additional duty for deficient declaration” in this paragraph) shall pay the additional duty for deficient declaration or the heavy additional duty for deficient declaration in an amount as stated in that written notice, on or before the day on which one month elapses from the day following the date on which the written notice is issued or on or before the date of import permission of goods subject to the customs duty that has caused the additional duty for deficient declaration or heavy additional duty for deficient declaration to be paid, whichever comes later.

(4)A person who has received a written notice of official assessment determination concerning the additional duty for non-declaration or the heavy additional duty referred to in paragraphs (2) to (4) of Article 12-4 (with respect to paragraph (4), limited to the provisions concerning the heavy additional duty referred to in paragraph (2) of that Article) (hereinafter referred to as “heavy additional duty for non-declaration” in this paragraph) shall pay additional duty for non-declaration or heavy additional duty for non-declaration in an amount as stated in that written notice, on or before the day on which one month elapses from the day following the date on which the written notice is issued.

(Extension of time limit for payment)

Article 9-2.Notwithstanding the provisions of paragraph (1) of the preceding Article, when a person who seeks to import goods to which the self-assessment system applies has filed a written import declaration prescribed in paragraph (2) of Article 7 (Declaration), if that person files, with respect to the time limit for payment of customs duty as prescribed in paragraph (1) of the preceding Article (hereinafter in this paragraph and the next paragraph referred to as “time limit for payment”), a written application for extension of time limit for payment with the Director General of Customs referred to in paragraph (2) of Article 7 and provides the Director General of Customs with security in an amount equivalent to the whole or part of the amount of customs duty stated in the written import declaration, the Director General of Customs may extend the time limit for payment within a period for up to three months, to the extent that the amount of customs duty does not exceed the amount of security so provided.

(2)If a person who seeks to import goods to which the self-assessment system applies (excluding specially declared goods) files, with respect to the time limit for payment of customs duty to be levied on goods that the person seeks to import during the month in question (hereinafter in this paragraph referred to as “specific month”), a written application for extension of time limit on or before the last day of the month preceding the specific month with the Director General of Customs with whom a declaration for the goods is to be filed under paragraph (1) of Article 7 and provides the Director General of Customs with security in an amount equivalent to the total amount of customs duty on the goods, the Director General of Customs, notwithstanding the provisions of paragraph (1) of the preceding Article, may extend the time limit for payment of customs duty on the goods that are imported by that person during the specific month, within a period for up to three months from the day following the last day of the specific month, to the extent that the cumulative amount of customs duty to be paid for the specific month does not exceed the amount of security so provided.

(3)When an authorized importer or a special entrusting importer has filed a written special declaration meeting time limit, if any of these importers files, within the time limit for filing of a written special declaration, a written application for extension of time limit for payment of customs duty the amount of which is equivalent to the amount of duty set forth in item (i) of paragraph (2) of the preceding Article with the Director General of Customs referred to in paragraph (2) of Article 7-2 (Special provisions for declaration) and provides the Director General of Customs with security in an amount equivalent to the whole or part of the amount of customs duty stated in that special declaration meeting time limit, the Director General of Customs, notwithstanding the provisions of paragraph (2) of the preceding Article, may extend the time limit for payment within a period for up to two months, to the extent that the amount of customs duty does not exceed the amount of security so provided.

(4)Matters to be stated in a written application referred to in the preceding three paragraphs and other necessary matters concerning application of these provisions are prescribed by Cabinet Order.

(Notice of duty payment)

Article 9-3.When the Director General of Customs seeks to collect customs duty other than the customs duty set forth in the following under the official assessment system, the Director General of Customs shall issue a notice of duty payment:

(i)customs duty on postal items to be paid pursuant to the provisions of paragraph (3) of Article 77 (Payment of customs duty on postal items);

(ii)customs duty to be allocated from the proceeds of public auction or sale of goods pursuant to the provisions of paragraph (1) of Article 85 (Allocation of proceeds from public auction, etc.) (including the cases where applied mutatis mutandis pursuant to Article 88 (Retained goods)) or paragraph (5) of Article 134 (Allocation of proceeds from public auction, etc. of detained objects, etc.);

(iii)additional duty for deficient declaration, additional duty for non-declaration and heavy additional duty.

(2)Pursuant to the provisions of Cabinet Order, the notice of duty payment prescribed in the preceding paragraph is given by the Director General of Customs through delivery of a written notice of duty payment stating the amount of duty payable and the time limit for, and the place of payment; provided, however, that in the case falling under the proviso to paragraph (4) of Article 8 (Oral notification of official assessment determination), the Director General of Customs may have customs officials deliver the notice orally, instead of delivery of the written notice.

(Procedures for payment)

Article 9-4.A person who seeks to pay customs duty (excluding customs duty on postal items to which the official assessment system applies; hereinafter the same applies in this Article) shall pay the amount equivalent to that of duty, accompanied by a written statement of payment (or, a written notice of duty payment, if it has been delivered) to the Bank of Japan (including agents authorized to receive national taxes) or to customs officials authorized to receive customs duty; provided, however, that payment in securities as prescribed by the Act on Payment of Revenues in Securities (Act No. 10 of 1916) or, subject to advance notice to the Director General of Customs as prescribed by the Ministry of Finance Order, payment using such means as may be prescribed by that Order is not precluded.

(Entrustment of payment to an entrusted person)

Article 9-5.A person who seeks to pay customs duty, if both of the requirements set forth in the following items are met, may entrust the payment to an entrusted person (i.e., an entrusted person provided for in paragraph (1) of the next Article; hereinafter the same applies in this Article):

(i)if the amount of customs duty does not exceed the amount specified by the Ministry of Finance Order;

(ii)if a person seeks to pay customs duty in accordance with the notice issued to an entrusted person through internet or other advanced information and telecommunication networks and specified by the Ministry of Finance Order.

(2)When a person who is required to pay customs duty seeks to pay the customs duty in accordance with the notice referred to in item (ii) of the preceding paragraph, if an entrusted person is entrusted with payment from the person who is required to pay the customs duty, the provisions concerning incidental duty applies, deeming the customs duty to have been paid on the day of that entrustment.

(3)In the case referred to in paragraph (1), for the purpose of application of Article 77 (Payment, etc. of customs duty on postal items) when payment of customs duty on postal items to which the official assessment system applies is entrusted, the term “pay customs duty in an amount equivalent to that stated in a written notification referred to in that paragraph or entrust Japan Post Co., Ltd. with payment of customs duty pursuant to the provisions of paragraph (1) of the next Article” in paragraph (3) of Article 77 is deemed to be replaced with “entrust, pursuant to the provisions of paragraph (1) of Article 9-5 (Entrustment of payment to an entrusted person), the payment of customs duty in an amount equivalent to that stated in a written notification referred to in that paragraph to an entrusted person” and the term “pays customs duty on the postal items pursuant to the provisions of paragraph (3) or delivers to Japan Post Co., Ltd. an amount equivalent to that of customs duty on the postal items pursuant to the provisions of paragraph (1) of the next Article” in paragraph (5) of that Article is deemed to be replaced with “entrusts the payment of customs duty on the postal items as prescribed in paragraph (3) to an entrusted person pursuant to the provisions of paragraph (1) of Article 9-5”, and paragraph (4) of Article 77 and Articles 77-2 to 77-5 (Entrustment of payment of customs duty on postal items; Payment of customs duty, etc. by Japan Post Co., Ltd.; Keeping of books; Rectification of illegal acts, etc.) do not apply.

(A person entrusted with payment)

Article 9-6.A person who is found to be capable of conducting properly and surely the matters concerning payment of customs duty (hereinafter in this paragraph and in paragraph (1) of Article 9-8 (Obligation of preservation of books, etc. of a person entrusted with payment) referred to as “matters concerning payment”) and is designated by the Minister of Finance as a person meeting the requirements specified by Cabinet Order (hereinafter referred to as “person entrusted with payment”) may conduct the matters concerning payment under the entrustment of the person who seeks to pay customs duty.

(2)When the Minister of Finance has made the designation prescribed in the preceding paragraph, the Minister of Finance shall issue a public notice of the name and address of the person entrusted with payment or the address of the person’s office and other matters specified by the Ministry of Finance Order.

(3)If a person entrusted with payment seeks to change the name or the address of the residence or office, that person shall notify the Minister of Finance of these changes in advance.

(4)If the notification prescribed in the preceding paragraph has been made, the Minister of Finance shall issue a public notice of the matters related to the notification.

(Payment by person entrusted with payment)

Article 9-7.If a person entrusted with payment has accepted entrustment from a person who seeks to pay customs duty pursuant to the provisions of paragraph (1) of Article 9-5 (Entrustment of payment to a person entrusted with payment), the person entrusted with payment shall pay the customs duty the payment of which has been entrusted on or before the day as specified by Cabinet Order.

(2)If a person entrusted with payment has accepted entrustment from a person who seeks to pay customs duty pursuant to the provisions of paragraph (1) of Article 9-5, the person entrusted with payment shall, pursuant to the provisions of the Ministry of Finance Order, report that fact and the date of entrustment to the Minister of Finance without delay.

(3)If a person entrusted with payment fails to fully pay the customs duty referred to in paragraph (1) on or before the day to be specified by Cabinet Order, as provided for in that paragraph, the Director General of Customs having jurisdiction over the address of that person or the location of that person’s office collects the customs duty from that person, using the rules for collection of national taxes from a guarantor.

(4)The Director General of Customs, unless there is, with respect to the customs duty required to be paid by a person entrusted with payment pursuant to the provisions of paragraph (1), any remainder to be collected even after the disposition prescribed in Article 40 (Disposition of delinquency) of the Act on General Rules for National Taxes, applied as a rule pursuant to the provisions of Article 11 (Collection of customs duty) is taken against that person, may not collect the amount of the remainder from the person liable to pay the customs duty.

(Obligation of preservation of books, etc. of a person entrusted with payment)

Article 9-8.A person entrusted with payment shall, pursuant to the provisions of the Ministry of Finance Order, keep books, state therein the matters concerning payment and preserve these books.

(2)The Director General of Customs, if it is found necessary in order to implement the preceding two Articles and this Article, may, pursuant to the provisions of the Ministry of Finance Order, have a person entrusted with payment report to the extent found necessary.

(3)Customs officials, if it is found necessary in order to perform the duties pursuant to the provisions of the preceding two Articles and this Article, may enter the office of a person entrusted with payment, inspect books and documents of that person (including electronic or magnetic records if such records (i.e., records that are processed by electronic methods, magnetic methods or other methods that cannot be perceived by the human senses and are intended for use in data processing by computer; hereinafter the same applies) are prepared or preserved in lieu of books or documents to be prepared or preserved) and other necessary items or may ask questions to any person concerned, to the extent found necessary.

(4)When customs officials conduct on-site inspection pursuant to the provisions of the preceding paragraph, they shall carry certificates for identification and present the certificates if requested by any person concerned.

(5)The authority provided for in paragraph (3) shall not be construed as being approved for a criminal investigation.

(Revocation of designation of a person entrusted with payment)

Article 9-9.If a person who has been designated under paragraph (1) of Article 9-6 (A person entrusted with payment) falls under any of the following items, the Minister of Finance may revoke the designation:

(i)if the person does not meet the requirements for designation provided for in paragraph (1) of Article 9-6;

(ii)if the person fails to report under paragraph (2) of Article 9-7 (Payment by a person entrusted with payment) or paragraph (2) of the preceding Article, or makes a false report;

(iii)if the person, in violation of paragraph (1) of the preceding Article, does not keep books nor state in books, makes a false statement in books or does not preserve books,;

(iv)if the person refuses, interferes with or evades entry or inspection prescribed in paragraph (3) of the preceding Article, or does not make a statement or makes a false statement in response to questioning prescribed in that paragraph.

(2)When the Minister of Finance has revoked the designation pursuant to the provisions of the preceding paragraph, the Minister of Finance shall make a public notice thereof.

(Priority order of duty collection)

Article 9-10.Notwithstanding the provisions of the National Tax Collection Act (Act No. 147 of 1959), the Local Tax Act (Act No. 226 of 1950) and other laws and regulations, customs duty is collected prior to collection of any other public charges and claims for foreign goods for which customs duty is to be collected.

(2)The order of priority for collection of customs duty and expenses incurred for disposition of delinquent customs duty when they are collected using the same rule as that used for collection of national taxes, is the same as that for collection of national taxes and expenses incurred for disposition of delinquent taxes as provided for by the National Tax Collection Act. In this case, application of the preceding paragraph is not precluded.

(Security)

Article 9-11.Article 50 (Types of security) of the Act on General Rules for National Taxes applies mutatis mutandis to the types of security for customs duty to be provided pursuant to the provisions of this Act, the Customs Tariff Act and other laws concerning customs duty.

(2)Necessary matters concerning provision of the security referred to in the preceding paragraph are prescribed by Cabinet Order.

(Allocation or collection when security has been provided)

Article 10.Pursuant to the provisions of Cabinet Order, a person liable to pay customs duty who has provided money as the security for customs duty, may allocate the money provided as the security to the payment of customs duty.

(2)When security for customs duty has been provided, Article 52 (Disposal of security) of the Act on General Rules for National Taxes applies mutatis mutandis if a person liable to pay customs duty fails to pay the whole amount of customs duty within the time limit for payment of customs duty as prescribed in Article 9 (Payment of customs duty, etc. under the self-assessment system) (if 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), then within the time limit so extended) or within the time limit for payment referred to in paragraph (2) of Article 9-3 (Notice of duty payment) (with respect to delinquent duty, within the time limit for payment of customs duty that is taken as a basis for calculation of the delinquent duty; the time limit herein is referred to as “time limit for payment” in Article 11 (Collection of customs duty) and in the proviso to paragraph (1) of Article 12 (Special provisions for calculation of the amount of delinquent duty)).

(3)The guarantor referred to in item (vi) of Article 50 (Types of security) of the Act on General Rules for National Taxes, as applied mutatis mutandis pursuant to paragraph (1) of the preceding Article is deemed to be a taxpayer for the purpose of application of the provisions of Chapter 10 (Penal Provisions) of the National Tax Collection Act.

(Handing over collection of customs duty)

Article 10-2.The Director General of Customs, if it is found necessary to do so, may hand over the collection of customs duty to any other Director General of Customs.

(2)When collection of customs duty has been handed over pursuant to the provisions of the preceding paragraph, the Director General of Customs who has been so handed over shall notify this fact to a person liable to pay customs duty without delay.

(Collection of customs duty)

Article 11.If customs duty is not fully paid within the time limit for payment (excluding when security is provided for the customs duty) and if it is found that customs duty for which the amount of duty payable has been determined is not likely to be fully paid within the time limit for payment in a case as set forth in each of the items of paragraph (1) of Article 38 (Request for advance payment) of the Act on General Rules for National Taxes, or if collection of customs duty payable on specially declared goods (excluding customs duty for which the amount of customs duty payable has been determined) cannot be ensured after its determination, then collection of the relevant customs duty is governed by the rules used for collection of national taxes.

Section 4-2 Incidental Duties

(Delinquent duty)

Article 12.If a person liable to pay customs duty fails to fully pay customs duty (excluding incidental duty; hereinafter the same applies in this Article) within the statutory time limit for payment or if the amount of customs duty repaid in excess or over-refunded is collected from the person pursuant to the provisions of Article 13-2 (Collection of over-refunded customs duty, etc.), the person, besides the amount of customs duty unpaid or to be collected, shall pay a delinquent duty in an amount equivalent to that calculated by multiplying the amount unpaid or to be collected by an annual rate of 7.3 percent, according to the number of days from the day following the statutory time limit (with respect to customs duty repaid in excess or over-refunded, from the day on which customs duty is repaid or over-refunded) until the day on which the amount of customs duty is paid; provided, however, that the amount of delinquent duty to be paid after the day on which a period of two months elapses from the day following the time limit for payment (with respect to customs duty repaid in excess or over-refunded, from the day following the time limit for payment associated with the notice of duty payment) is to be calculated by multiplying the amount of customs duty unpaid by an annual rate of 14.6 percent.

(2)In the case referred to in the preceding paragraph, if a person liable to pay customs duty has paid part of the amount of customs duty unpaid or to be collected, the amount of customs duty that is taken as a basis for calculation of the amount of delinquent duty in the period on or after the day following the date on which customs duty has been so paid is the amount obtained by deducting the amount of customs duty partly paid from that of customs duty unpaid or to be collected as referred to in the preceding paragraph.

(3)If the amount of customs duty that is taken as a basis for calculation of the amount of delinquent duty is less than 10,000 yen, paragraph (1) does not apply and the amount of customs duty taken as the basis for calculation is rounded down to the nearest 10,000 yen.

(4)If the amount of delinquent duty is less than 1,000 yen, it is not collected and the amount of delinquent duty is to be rounded down to the nearest 100 yen.

(5)In the case referred to in paragraph (1), until the amount of duty paid by a person liable to pay customs duty reaches the amount of customs duty unpaid or to be collected as referred to in that paragraph, the amount of customs duty so paid is deemed to have been allocated to the amount of customs duty unpaid or to be collected.

(6)In the case referred to in paragraph (1), if the amount of unpaid customs duty referred to in that paragraph is determined after the statutory time limit for payment referred to in that paragraph due to any error in the amount of duty, etc. caused by unavoidable grounds and if these circumstances are confirmed by the Director General of Customs pursuant to the provisions of Cabinet Order, exemption from the amount of delinquent duty associated with that unpaid amount of duty is given to part of that amount of delinquent duty, corresponding to the number of days from the day following that statutory time limit until the day on which an amended declaration for the customs duty is made or until the day on which a written notice of reassessment or a written notice of official assessment determination is issued.

(7)In the case referred to in paragraph (1), if the situation falls under any of the cases as set forth in the following items, the amount specified in these items is exempted from the delinquent duty associated with that customs duty; provided, however, that in the case set forth in item (i), if there arises any fact that would cause revocation prescribed in paragraph (1) of Article 49 (Revocation of tax payment grace period) of the Act on General Rules for National Taxes, as applied mutatis mutandis pursuant to paragraph (1) of Article 154 (Revocation of discontinuance of measures to collect arrears) or paragraph (3) or (4) of Article 152 (Installment payment of taxes pertaining to grace period for asset conversion, notice, etc.), of the National Tax Collection Act, to be applied as a rule (hereinafter referred to as “the National Tax Collection Act, applied as a rule” in this paragraph and in the next paragraph) pursuant to the provisions of the preceding Article, the Director General of Customs may elect not to exempt the amount equivalent to the amount corresponding to the period following the day on which the fact arises:

(i)when execution of disposition of delinquency has been discontinued, as prescribed in paragraph (1) of Article 153 (Requirements for discontinuance of measures to collect arrears) of the National Tax Collection Act, applied as a rule or when conversion of asset is postponed, as prescribed in paragraph (1) of Article 151 or paragraph (1) of Article 151-2 (Requirements for granting grace period for asset conversion, etc.) of the National Tax Collection Act, applied as a rule: the amount of delinquent duty associated with the customs duty so discontinued or postponed, equivalent to the amount corresponding to the period of the discontinuance or equivalent to one-half of the amount corresponding to the period of postponement of such conversion (limited to the period following the day on which two months elapse from the day following the time limit for payment of the customs duty);

(ii)when the time limit for payment of customs duty is extended pursuant to the provisions of Article 2-3 (Extension of time limit due to a disaster, etc.): the amount of the delinquent duty associated with the customs duty, corresponding to the period so extended;

(iii)when the Minister of Finance or the Director General of Customs discontinues the execution of a disposition relating to collection of customs duty pursuant to the provisions of paragraph (2) or (4) of Article 25 (Discontinuance of execution) of the Administrative Complaint Review Act (Act No. 68 of 2014) (including when these provisions apply mutatis mutandis pursuant to Article 61 (Mutatis mutandis application of provisions on request for review) of that Act): the amount equivalent to one-half of the amount corresponding to, within the period of discontinuance, the period following the day on which two months elapse from the day following the time limit for payment of the customs duty (when the delinquent duty is exempted pursuant to the provisions of item (i) or (ii) of this paragraph or item (i) of the next paragraph, the period subject to the exemption is excluded).

(8)In the case referred to in paragraph (1), if the situation falls under any of the cases as set forth in the following items, the Director General of Customs may exempt the delinquent duty associated with the customs duty within the limit of the amount as specified respectively in the following items:

(i)if realization of assets has been postponed, as prescribed in paragraph (1) of Article 151 or paragraph (1) of Article 151-2 of the National Tax Collection Act, applied as a rule and if a person liable to pay customs duty falls under the following item (a) or (b): the amount of delinquent duty associated with customs duty so postponed (excluding the amount exempted as prescribed in item (i) or (ii) of the preceding paragraph; hereinafter the same applies in this item), corresponding to the postponed period (if the Director General of Customs finds that there is an unavoidable reason for failure to pay the customs duty within that period, including the period from the day following the time limit for postponement until the day on which the unavoidable reason ceases), if it is found difficult for that person to pay the amount:

(a)if the financial situation of a person liable to pay customs duty is extremely severe and it is found that it would become extremely difficult for that person to continue the business or to maintain a livelihood unless any public charges other than customs duty or any debts that have come due are to be reduced or exempted, when such public charges or debts are reduced or exempted;

(b)if it is found that it would be difficult for the person liable to pay customs duty to pay the delinquent duty for any unavoidable reason, due to the business or living circumstances of that person;

(ii)if the Director General of Customs has seized property in order to collect the whole amount of customs duty in arrears using the same rules as national taxes or has been provided security in an amount equivalent to the amount of duty payable: the amount equivalent to one-half of the amount of delinquent duty calculated based on the customs duty associated with the seizure or provision of security, for the part corresponding to, within the period of seizure or provision of security, the period following the day on which two months elapse from the day following the time limit for payment of the customs duty (if delinquent duty is exempted pursuant to the provisions of each of the items of the preceding paragraph or the preceding item, the period subject to the exemption is excluded);

(iii)in the case falling under any of the following items (a) to (c): the amount specified in items (a) to (c) for the amount of delinquent duty associated with customs duty provided for in items (a) to (c) (excluding the amount of delinquent duty subject to the exemption prescribed in paragraph (6), the items of the preceding paragraph or the preceding two items):

(a)if the amount received as a result of the request for share distribution, as prescribed in the National Tax Collection Act, applied as a rule has been allocated to customs duty subject to that request: the amount corresponding to the period from the day following the date on which the amount was received under the procedures for compulsory conversion into money conducted by an enforcement agency that received the request (i.e., an agency provided for in item (xiii) of Article 2 (Definitions) of the National Tax Collection Act, applied as a rule) until the day of the allocation;

(b)if any situation in which customs duty cannot be paid occurs due to earthquake, wind or flood damage, fire or other similar disaster: the amount corresponding to the period from the day on which that situation occurs until the day on which a period of seven days elapses from the day following the day on which that situation ceases;

(c)if the fact similar to that falling under item (a) or (b) occurs and that fact is prescribed by Cabinet Order: the amount corresponding to the period to be prescribed by Cabinet Order.

(9)The “statutory time limit for payment” as used in paragraph (1) and item (i) of paragraph (11) is the date of importation of goods on which the customs duty is to be levied (or, with respect to goods that require import permission, the date of the permission); provided, however, that with respect to customs duty set forth in the following items, the “statutory time limit for payment” is the time limit or the date as specified respectively in the following items (if the documents referred to in item (iii) or (iv), related to customs duty set forth in these items are issued two or more times, the date on which the first document is issued):

(i)customs duty payable for specially declared goods (excluding customs duty for which the time limit for payment has been extended pursuant to the provisions of paragraph (3) of Article 9-2 (Extension of time limit for payment)): the time limit for filing of a written special declaration;

(ii)customs duty for which the time limit for payment has been extended pursuant to the provisions of paragraphs (1) to (3) of Article 9-2: the time limit so extended;

(iii)customs duty payable for 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): the date on which the document referred to in Article 7-17 (Notification of amount of duty, etc. for goods withdrawn prior to import permission), a written notice of reassessment or a written notice of duty payment prescribed in Article 9-3 (Notice of duty payment) is issued for that customs duty;

(iv)customs duty payable for postal items received with the approval of the Director General of Customs referred to in paragraph (6) of Article 77 (Payment of customs duty, etc. of postal items): the date on which a written notice of duty payment prescribed in Article 9-3 is issued for that customs duty;

(v)customs duty imposed pursuant to the provisions of paragraph (3) of Article 7 (Countervailing duty) of the Customs Tariff Act or paragraph (2) of Article 8 (Anti-dumping duty) of that Act, or customs duty imposed pursuant to the provisions of paragraph (1) of Article 8 of that Act, which is altered or maintained pursuant to the provisions of paragraph (16) of that Article: the time limit for payment as stated in a written notice of duty payment associated with the relevant customs duty;

(vi)customs duty to be immediately collected, pursuant to the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty if a certain event occurs: the day on which such an event occurs.

(10)When an amended declaration has been made (excluding an amended declaration made by a person who, by deception or other wrongful acts, has evaded customs duty or has received repayment or refund of customs duty, in anticipation of reassessment being likely made for the customs duty for the reason that investigation has been conducted with respect to that customs duty (an amended declaration herein is referred to as “specific amended declaration” in the next paragraph)), or when reassessment has been made (excluding reassessment of customs duty the reassessment of which has been conducted against a person who, by deception or other wrongful acts, has evaded customs duty or has received repayment or refund of customs duty (reassessment herein is referred to as “specific reassessment” in the next paragraph)), if the situation falls under any of the following items, paragraph (1) applies to the delinquent duty associated with customs duty to be paid on the basis of the amended declaration or reassessment, after deducting the number of days specified respectively in these items from the number of days provided for in paragraph (1):

(i)when a declaration prescribed in paragraph (1) of Article 7 (Declaration) is made for customs duty subject to the amended declaration or reassessment (or, in the case of a special declaration, when a written special declaration meeting time limit is filed), if the amended declaration is made or a written notice of reassessment for that reassessment is issued after the day on which one year elapses from the statutory time limit for payment referred to in paragraph (1): the number of days from the day following the date on which one year elapses from the statutory time limit for payment until the day on which the amended declaration is filed or a written notice of reassessment for that reassessment is issued;

(ii)when a written special declaration after time limit is filed for customs duty subject to the amended declaration or reassessment, if the amended declaration is made or a written notice of reassessment for that reassessment is issued after the day on which one year elapses from the day following the date on which the written special declaration after time limit is filed: the number of days from the day following the date on which one year elapses from the day following the date on which the written special declaration after time limit is filed until the day on which the amended declaration is made or the day on which a written notice of reassessment for that reassessment is issued.

(11)When an amended declaration is made or reassessment that results in increase of the amount of duty payable (including similar reassessment prescribed by Cabinet Order; hereinafter referred to as “increase reassessment” in this paragraph) is made, if, with respect to customs duty under that declaration or increase reassessment, a declaration prescribed in paragraph (1) of Article 7 (in the case of a special declaration, a written special declaration meeting time limit) or a written special declaration after time limit has been filed and if the amended declaration or the increase reassessment is made after the amount of duty payable, as a result of reassessment, has decreased on the basis of the declaration or written special declaration after time limit (hereinafter referred to as “decrease reassessment” in this paragraph), notwithstanding the provisions of the preceding paragraph, paragraph (1) applies to customs duty payable on the basis of the amended declaration or increase reassessment (limited to customs duty, as prescribed by Cabinet Order, up to the amount of duty under that declaration or written special declaration after time limit) after deducting the number of days set forth in the following (in the case of customs duty payable on the basis of a specific amended declaration or specific reassessment or other customs duty prescribed by Cabinet Order, limited to the number of days set forth in item (i)) from the number of days provided for in paragraph (1):

(i)the number of days from the day following the date on which the amount of duty payable (if the date comes before the statutory time limit for payment of the customs duty, then the statutory time limit for payment) is paid by filing of the declaration or written special declaration after time limit until the day on which a written notice of reassessment for the decrease reassessment is issued;

(ii)the number of days from the day following the date on which a written notice of reassessment for the decrease reassessment is issued (when the decrease reassessment is the reassessment based on the request for reassessment, the date on which one year elapses from the day following the date on which the notice of reassessment is issued) until the day on which the amended declaration is made or a written notice of reassessment for the increase reassessment is issued.

(Additional duty for deficient declaration)

Article 12-2.When a declaration prescribed in paragraph (1) of Article 7 (Declaration) (hereinafter referred to as “initial declaration”) has been made (when a written special declaration after time limit has been filed, limited to the case where the proviso to paragraph (1) or paragraph (7), of the next Article applies), if an amended declaration or reassessment is made, there shall be imposed on the person liable to pay customs duty an additional duty for deficient declaration in an amount equivalent to the amount obtained by multiplying the amount of duty that the person is required to pay pursuant to the provisions of paragraph (1) or (2) of Article 9 (Payment of customs duty, etc. under the self-assessment system) on the basis of the amended declaration or reassessment, by a rate of 10/100 (or, if an amended declaration is not made in anticipation of reassessment being likely made for customs duty under that declaration for the reason that an investigation has been conducted with respect to that customs duty, a rate of 5/100).

(2)In the case falling under the preceding paragraph (excluding when paragraph (5) is applicable), if the amount of duty payable as provided for in the preceding paragraph (if, prior to the amended declaration or reassessment referred to in the preceding paragraph, an amended declaration or reassessment has been made with respect to the customs duty under the amended declaration or reassessment referred to in that paragraph, then the amount obtained by adding the cumulative additional amount of duty associated with that customs duty) exceeds the amount equivalent to the amount of duty under the initial declaration or five hundred thousand yen, whichever is larger, the amount of additional duty for deficient declaration referred to in that paragraph, notwithstanding the provisions of that paragraph, is the amount obtained by adding to the amount calculated pursuant to the provisions of that paragraph an amount obtained by multiplying the amount of duty equivalent to that excess amount (if the amount of duty payable provided for in that paragraph is less than the amount of duty equivalent to that excess amount, then the amount of duty payable) by a rate of 5/100.

(3)If an amended declaration or reassessment has been made with respect to the matters recorded in electronic or magnetic records or computer-output microfilms when keeping and preservation of such electronic or magnetic records covering books relating to customs duty (i.e., books that are required to be kept and preserved pursuant to the provisions of paragraph (1) of Article 94 (Keeping of books, etc.); hereinafter the same applies) or books relating to special imports and customs duty, as set forth in the following items or keeping of such electronic or magnetic records and preservation of such computer-output microfilms of these electronic or magnetic records (i.e., microfilms produced by outputting electronic or magnetic records by computer; hereinafter the same applies), performed by a person responsible for preservation (i.e., a person who, in the course of trade, imports goods subject to the self-assessment system; hereinafter the same applies in this paragraph and paragraph (3) of Article 12-4) meet the requirements prescribed by the Ministry of Finance Order as those contributing to the proper performance of the obligation of duty-payment (limited to electronic or magnetic records or computer-output microfilms that have been kept and preserved in conformity with the requirements specified by the Ministry of Finance Order from the day on which import permission of these goods was given; hereinafter the same applies in this paragraph), the amount of additional duty for deficient declaration referred to in paragraph (1), if paragraph (1) is applicable, notwithstanding the provisions of the preceding two paragraphs, is the amount obtained by deducting from the amount calculated pursuant to the provisions of the preceding two paragraphs the amount calculated by multiplying the amount of duty that is to be taken as a basis for calculation of the amount of the additional duty for deficient declaration (if there is any fact other than the fact that is to be taken as a basis for calculation of the amount of additional duty for deficient declaration and covers the matters that are recorded in the electronic or magnetic records or computer-output microfilms and that causes the amended declaration or reassessment to be made (hereinafter in this paragraph referred to as “fact other than the fact pertaining to matters recorded in electronic or magnetic records, etc.”), the amount of duty obtained by deducting the amount calculated, pursuant to the provisions of Cabinet Order, as the amount of duty based on the fact other than the fact pertaining to matters recorded in electronic or magnetic records, etc.) by a rate of 5/100; provided, however, that this does not apply if any fact to be taken as a basis for calculation of the amount of duty is concealed or disguised:

(i)the books relating to customs duty or the books relating to special imports and customs duty, of a person responsible for preservation if that person keeps and preserves electronic or magnetic records covering the books relating to customs duty and the books relating to special imports and customs duty in lieu of keeping and preserving the books relating to customs duty or the books relating to special imports and customs duty pursuant to the provisions of paragraph (1) of Article 94-2 (Preservation, etc. of books and documents relating to customs duty by means of electronic or magnetic records) (including the cases where applied mutatis mutandis by replacing certain terms pursuant to paragraph (2) of Article 7-9);

(ii)the books relating to customs duty or the books relating to special imports and customs duty, of a person responsible for preservation if that person keeps electronic or magnetic records covering the books relating to customs duty or the books relating to special imports and customs duty and preserves the computer-output microfilms of that electronic or magnetic records in lieu of keeping and preserving the books relating to customs duty or the books relating to special imports and customs duty pursuant to the provisions of paragraph (1) or (3) of Article 94-3 (Preservation, etc. of books and documents relating to customs duty by means of computer-output microfilms) (including the cases where applied mutatis mutandis by replacing certain terms pursuant to paragraph (2) of Article 7-9).

(4)In the case set forth in the following items, the preceding three paragraphs apply by deducting from the amount of duty payable as provided for in paragraph (1) or (2) the amount calculated pursuant to the provisions of Cabinet Order as the amount of duty specified in these items:

(i)if there is, among the facts that have been taken as a basis for calculation of the amount of duty payable as provided for in paragraph (1) or (2), any fact that is found to have legitimate grounds for not having been taken as a basis for calculation of the amount of duty before the amended declaration or reassessment was made: the amount of duty based on the fact as found legitimate;

(ii)if, with respect to customs duty under the amended declaration or reassessment referred to in paragraph (1), reassessment that decreases the amount of duty payable based on the initial declaration was made (excluding reassessment based on a request for reassessment) before the amended declaration or reassessment referred to in paragraph (1) is made: the amount of duty up to the amount of duty under the initial declaration.

(5)If an amended declaration is not made in anticipation of reassessment being likely made with respect to the customs duty under that declaration for the reason that an investigation has been conducted with respect to that customs duty and if the amended declaration has been made before a notification is issued with respect to the matters set forth in items (iv) and (v) of paragraph (1) of Article 74-9 (Advance notice of investigation to taxpayers, etc.) of the Act on General Rules for National Taxes, as applied mutatis mutandis pursuant to Article 105-2 (Advance notice of investigation to importers, etc.) and related to an investigation on the customs duty under that declaration and other matters prescribed by Cabinet Order (the notification is referred to as “notice of investigation” in item (ii) of paragraph (4) and paragraph (6) of the next Article), then paragraph (1) does not apply.

(6)Paragraphs (3) and (4) of the preceding Article (Delinquent duty) apply mutatis mutandis to an additional duty for deficient declaration. In this case, the terms “amount of customs duty” and “paragraph (1)” in paragraph (3) of the preceding Article are deemed to be replaced with “amount of duty” and “paragraph (1) of the next Article”, respectively, and the term “1,000 yen” in paragraph (4) of the preceding Article is deemed to be replaced with “5,000 yen”.

(7)The “cumulative additional amount of duty” provided for in paragraph (2) means the total amount of duty to be paid, pursuant to the provisions of paragraph (1) or (2) of Article 9, on the basis of an amended declaration (excluding an amended declaration to which paragraph (5) applies) or reassessment for the customs duty, made prior to the amended declaration or reassessment referred to in paragraph (1) (if, with respect to that customs duty, any reassessment to decrease the amount of duty payable was made or any changes in the original disposition was made on the basis of the determination, administrative determination or judgment given on an objection or action pertaining to reassessment, then the amount equivalent to the amount of duty so decreased is deducted from the total amount of duty and if paragraph (4) was applied, then the amount that should have been deducted pursuant to the provisions of that paragraph is deducted from the total amount of duty).

(Additional duty for non-declaration)

Article 12-3.If the situation falls under any of the following items, there shall be imposed on a person liable to pay customs duty an additional duty for non-declaration in an amount equivalent to the amount calculated by multiplying the amount of customs duty to be paid, pursuant to the provisions of paragraph (2) of Article 9 (Payment of customs duty, etc. under the self-assessment system), on the basis of the declaration, determination or reassessment as provided for in the following items by a rate of 15/100 (if filing of a written special declaration after time limit or an amended declaration referred to in item (ii) is not made in anticipation of reassessment or determination prescribed in paragraph (2) of Article 7-16 (Reassessment and determination) (hereinafter referred to as “reassessment or determination” in this Section) being likely made with respect to the customs duty under the relevant declaration for the reason that an investigation has been conducted with respect to that customs duty, then by a rate of 10/100); provided, however, that this does not apply if it is found that there are legitimate grounds for not having made the initial declaration by the time of importation of goods for which that declaration is required (in the case of a special declaration, within the time limit for filing of a written special declaration):

(i)when filing of a written special declaration after time limit or a determination prescribed in paragraph (2) of Article 7-16 is made;

(ii)when an amended declaration or reassessment is made after filing of a written special declaration after time limit or a determination prescribed in paragraph (2) of Article 7-16 was made.

(2)In the case falling under the preceding paragraph (excluding when the proviso to the preceding paragraph or paragraph (7) is applicable; the same applies in the next paragraph and paragraph (4)), if the amount of duty payable, as provided for in the preceding paragraph (if an amended declaration or reassessment as referred to in item (ii) of that paragraph is made, the amount of duty obtained by adding the cumulative amount of duty payable associated with the customs duty; referred to as “cumulative amount of duty payable after addition” in the next paragraph) exceeds five hundred thousand yen, the amount of the additional duty for non-declaration referred to in the preceding paragraph, notwithstanding the provisions of that paragraph, is the amount obtained by adding to the amount calculated pursuant to the provisions of that paragraph an amount obtained by multiplying the amount of duty equivalent to the excess amount (if the amount of duty payable, as provided for in that paragraph is less than the amount of duty equivalent to the excess amount, then the amount of duty payable) by a rate of 5/100.

(3)In the case falling under paragraph (1), if the cumulative amount of duty payable after addition (if there are, among the facts that were taken as a basis for calculation of that cumulative amount of duty payable after addition, any facts found not to be based on the grounds attributable to the person liable to pay customs duty for not having taken as a basis for calculation of the amount of duty before the declaration, determination or reassessment as provided for in each of the items of that paragraph was made, then the amount of duty obtained by deducting the amount calculated pursuant to the provisions of Cabinet Order as the amount of duty based on such facts) exceeds three million yen, the amount of additional duty for non-declaration referred to in that paragraph, notwithstanding the provisions of the preceding two paragraphs, is the amount obtained by deducting from the total amount of the amounts calculated by multiplying each of the amounts of duty specified for the category of the amount of duty of the cumulative amount of duty payable after addition as set forth respectively in each of the following items by the rate (if the special declaration after time limit or the amended declaration referred to in item (ii) of paragraph (1) are not made in anticipation of reassessment or determination being likely made with respect to the customs duty under the declaration for the reason that an investigation has been conducted with respect to that customs duty, the rate reduced from that rate by 5/100; hereinafter the same applies in this paragraph) as specified in each of these items, the total amount of the amounts calculated by multiplying each of the amounts of duty specified for the category of the amount of duty of the cumulative amount of duty payable after addition as set forth in each of these items by the rate as specified in each of these items:

(i)(i) amount of duty equivalent to the part of five hundred thousand yen or less: a rate of 15/100;

(ii)amount of duty equivalent to the part exceeding five hundred thousand yen, but equal to or less than three million yen: a rate of 20/100;

(iii)(iii) amount of duty equivalent to the part exceeding three million yen: a rate of 30/100.

(4)In the case falling under paragraph (1), if the situation falls under any of the following items, the amount of additional duty for non-declaration referred to in that paragraph, notwithstanding the provisions of the preceding three paragraphs, is the amount obtained by adding to the amount calculated pursuant to the provisions of the preceding three paragraphs, the amount calculated by multiplying the amount of duty payable provided for in paragraph (1) by a rate of 10/100:

(i)if any additional duty for non-declaration (excluding additional duty for non-declaration imposed when the special declaration after time limit or the amended declaration referred to in that item has not been made in anticipation of reassessment or determination being likely made as the result of an investigation conducted with respect to the customs duty under the declaration) or heavy additional duty (in item (i) of paragraph (4) of the next Article referred to as “additional duty for non-declaration, etc.”), associated with customs duty has been imposed during five years preceding the day following the date on which the special declaration after time limit was filed or the amended declaration referred to in item (ii) of paragraph (1) (limited to amended declaration made in anticipation of reassessment or determination being likely made with respect to the customs duty for the reason that an investigation has been conducted with respect to the customs duty related to that amended declaration) or the reassessment or determination was made;

(ii)With respect to customs duty associated with goods (in the case of specially declared goods, goods the importation of which is permitted) imported during two years preceding the year that includes the day of importation of goods (in the case of specially declared goods, the day of import permission) related to the customs duty associated with filing of the special declaration after time limit, the amended declaration referred to in item (ii) of paragraph (1) (if the amended declaration has not been made in anticipation of reassessment or determination being likely made as the result of investigation conducted with respect to the customs duty under the declaration, then the amended declaration made before a notice of investigation concerning that customs duty was issued is excluded) or reassessment or determination, if any additional duty for non-declaration (excluding the additional duty for non-declaration to which paragraph (6) applies) or the heavy additional duty referred to in paragraph (2) of the next Article (hereinafter referred to as “specific additional duty for non-declaration, etc.” in this item and item (ii) of paragraph (4) of the next Article) has been imposed or if it is considered that official assessment determination related to the specific additional duty for non-declaration, etc. should be made.

(5)Paragraph (4) of the preceding Article (limited to the provisions related to item (i)) applies mutatis mutandis to the case referred to in item (ii) of paragraph (1).

(6)When filing of a written special declaration after time limit or the amended declaration referred to in item (ii) of paragraph (1) is not made in anticipation of reassessment or determination being likely made with respect to the customs duty under the declaration for the reason that an investigation has been conducted with respect to that customs duty, if filing of the written special declaration after time limit or the amended declaration is made before a notice of investigation with respect to the customs duty under the declaration is issued, the amount of additional duty for non-declaration referred to in paragraph (1), associated with the amount of duty to be paid on the basis of the declaration pursuant to the provisions of paragraph (2) of Article 9, notwithstanding the provisions of paragraphs (1) to (3), is the amount obtained by multiplying the amount of duty payable by a rate of 5/100.

(7)When filing of a written special declaration after time limit is not made in anticipation of determination prescribed in paragraph (2) of Article 7-16 being likely made with respect to the customs duty under that declaration for the reason that an investigation has been conducted with respect to that customs duty, if the written special declaration after time limit is filed in the situation falling under the case prescribed by Cabinet Order as the case in which it is found that a written special declaration meeting time limit was intended to be filed and the written special declaration after time limit is filed on or before the day on which one month elapses from the time limit for filing, then paragraph (1) does not apply.

(8)Paragraphs (3) and (4) of Article 12 (Delinquent duty) apply mutatis mutandis to an additional duty for non-declaration. In this case, the terms “amount of customs duty” and “paragraph (1)” in paragraph (3) of that Article are deemed to be replaced with “amount of duty” and “the main clause of paragraph (1) of Article 12-3”, respectively, and the term “1,000 yen” in paragraph (4) of that Article is deemed to be replaced with “5,000 yen”.

(9)The “cumulative amount of duty payable” provided for in paragraphs (2) and (3) means the total amount of duty payable, as set forth in the following with respect to customs duty before the amended declaration or reassessment as referred to in item (ii) of paragraph (1) is made (when, with respect to that customs duty, any reassessment to decrease the amount of duty payable was made or any changes in the original disposition were made on the basis of the determination, administrative determination or judgment given on an objection or action concerning reassessment, then the amount equivalent to the amount of duty so decreased is to be deducted from the total amount of duty payable and when paragraph (4) of the preceding Article, as applied mutatis mutandis pursuant to paragraph (5) applies, then the amount obtained after deducting an amount that should have been deducted pursuant to the provisions of that paragraph is to be deducted from the total amount of duty payable):

(i)the amount of duty to be paid on the basis of filing of a written special declaration after time limit or the determination prescribed in paragraph (2) of Article 7-16, pursuant to the provisions of paragraph (2) of Article 9;

(ii)the amount of duty to be paid on the basis of an amended declaration or reassessment, pursuant to the provisions of paragraph (2) of Article 9.

(Heavy additional duty)

Article 12-4.When the situation falls under paragraph (1) of Article 12-2 (Additional duty for deficient declaration) (excluding when an amended declaration has not been made in anticipation of reassessment being likely made with respect to the customs duty under the relevant declaration for the reason that an investigation has been conducted with respect to that customs duty), if a person liable to pay customs duty conceals or disguises either wholly or partly the basis for duty assessment, etc. of that customs duty (i.e., matters to be stated in a written import declaration provided for in paragraph (2) of Article 7 (Declaration) or those to be stated in a written special declaration provided for in paragraph (1) of Article 7-2 (Special provisions for declaration); hereinafter the same applies in this Article) or the facts that are to be taken as a basis for calculation of the amount of duty payable and files a declaration for duty payment on the basis of those so concealed or disguised, there shall, pursuant to the provisions of Cabinet Order, be imposed on that person a heavy additional duty in an amount equivalent to the amount obtained by multiplying the amount of duty that is to be taken as a basis for calculation of the amount of additional duty for deficient declaration by a rate of 35/100, in lieu of the additional duty for deficient declaration associated with the amount of duty that is to be taken as a basis for calculation of the amount of the additional duty for deficient declaration (if it is evident that there is any amount of duty that is calculated on the basis of facts that are to be taken as a basis for calculation of that amount of duty and that are not concealed or disguised, then the amount of duty obtained by deducting the amount calculated, pursuant to the provisions of Cabinet Order as the amount of duty based on the facts not so concealed or disguised).

(2)When the situation falls under paragraph (1) of the preceding Article (excluding when the proviso to that paragraph or paragraph (7) of the preceding Article applies or when filing of a written special declaration after time limit or an amended declaration referred to in item (ii) of paragraph (1) of the preceding Article has not been made in anticipation of reassessment or determination being likely made with respect to the customs duty under the relevant declaration for the reason that an investigation has been conducted with respect to the customs duty), if a person liable to pay customs duty conceals or disguises either wholly or partly the basis for duty assessment, etc. of that customs duty or the facts that are to be taken as a basis for calculation of the amount of duty payable and if the situation falls under any of the items of paragraph (1) of the preceding Article as a result of such concealment or disguise, there shall, pursuant to the provisions of Cabinet Order, be imposed on that person a heavy additional duty in an amount equivalent to the amount calculated by multiplying the amount of duty that is to be taken as a basis for calculation of the amount of additional duty for non-declaration by a rate of 40/100, in lieu of the additional duty for non-declaration associated with the amount of duty that is to be taken as a basis for calculation of the amount of the additional duty for non-declaration (if it is evident that there is any amount of duty calculated on the basis of the facts that are to be taken as a basis for calculation of that amount of duty and that are not concealed or disguised, then the amount of duty obtained by deducting the amount calculated, pursuant to the provisions of Cabinet Order, as the amount of duty based on the facts not so concealed or disguised).

(3)When filing of a special declaration after time limit, an amended declaration or reassessment or determination has been made with respect to the electronic or magnetic records of the documents relating to customs duty (i.e., documents required to be preserved pursuant to the provisions of the main clause of paragraph (1) of Article 94 (Keeping of books, etc.); hereinafter the same applies in this paragraph) or of the documents relating to special imports and customs duty, provided for in paragraph (3) of Article 94-2 (Preservation, etc. of books and documents relating to customs duty by means of electronic or magnetic records) (including the cases where applied mutatis mutandis pursuant to paragraph (2) of Article 7-9; hereinafter the same applies in this paragraph), preserved by a person responsible for preservation in lieu of preserving these documents relating customs duty or these documents relating to special imports and customs duty pursuant to the provisions of the first sentence of paragraph (3) of Article 94-2 or preserved by that person pursuant to the provisions of the second sentence of that paragraph or with respect to matters recorded in the electronic or magnetic records of information on electronic transaction conducted by a person responsible for preservation, as referred to in Article 94-5 (Preservation of electronic or magnetic records of information on electronic transaction) (including the cases where applied mutatis mutandis pursuant to paragraph (2) of Article 7-9), if the situation falls under the preceding two paragraphs, the amount of heavy additional duty referred to in the preceding two paragraphs, notwithstanding the provisions of the preceding two paragraphs, is the amount obtained by adding to the amount calculated pursuant to the provisions of the preceding two paragraphs the amount calculated by multiplying the amount of duty that is to be taken as a basis, as provided for in the preceding two paragraphs (if there are any facts that are to be taken as a basis for calculation of the amount of duty other than the facts relating to the matters that are recorded in the electronic or magnetic records and cause the filing of the special declaration after time limit, the amended declaration or the reassessment or determination (limited to matters relating to the facts concealed or disguised) (hereinafter in this paragraph referred to as “facts other than those relating to the matters recorded in the electronic or magnetic records”), the amount of duty obtained by deducting the amount calculated, pursuant to the provisions of Cabinet Order, as the amount of duty based on the facts other than those relating to the matters recorded in the electronic or magnetic records), by a rate of 10/100.

(4)In the case falling under paragraph (1) or (2), if the situation falls under any of the following items (if the situation falls under paragraph (1), then item (i)), the amount of heavy additional duty referred to in paragraph (1) or (2), notwithstanding the provisions of the preceding three paragraphs, is the amount obtained by adding to the amount calculated pursuant to the provisions of the preceding three paragraphs, the amount calculated by multiplying the amount of duty that is to be taken as a basis as provided for in paragraph (1) or (2) by a rate of 10/100:

(i)if any additional duty for non-declaration, etc. for customs duty was imposed during five years until the day preceding the date on which filing of a written special declaration after time limit, an amended declaration or reassessment or determination was made, based on the facts that are to be taken as the basis of calculation of the amount of duty provided for in paragraph (1) or (2) and are concealed or disguised;

(ii)if specific additional duty for non-declaration, etc. has been imposed with respect to the customs duty on goods imported during two years preceding the year that includes the day on which goods subject to the customs duty associated with filing of the written special declaration after time limit, amended declaration referred to in item (ii) of paragraph (1) of the preceding Article or reassessment or determination were imported (or, in the case of specially declared goods, the day of import permission) (or, import-permitted goods in the case of special declaration), or if it is considered that official assessment determination related to the specific additional duty for non-declaration, etc. should be made.

(5)Paragraphs (3) and (4) of Article 12 (Delinquent duty) apply mutatis mutandis to heavy additional duty. In this case, the terms “amount of customs duty” and “paragraph (1)” in paragraph (3) of that Article are deemed to be replaced with “amount of duty” and “paragraphs (1) and (2) of Article 12-4”, respectively and the term “1,000 yen” in paragraph (4) of that Article is deemed to be replaced with “5,000 yen”.

Section 5 Other Provisions

(Refund and allocation)

Article 13.If there is any amount of customs duty paid in excess or in error (including charges incurred for collection of delinquent customs duty; hereinafter the same applies in this Article), the Director General of Customs shall refund that amount in money without delay.

(2)When the amount paid in excess or in error as referred to in the preceding paragraph is refunded or the amount to be refunded is allocated pursuant to the provisions of paragraph (7), there shall be added to the amount to be refunded or allocated the amount calculated by multiplying the amount to be so refunded or allocated by the annual rate of 7.3 percent according to the number of days during the period from the day following the date as specified in each of the following items for the category of payment in excess or in error as set forth respectively therein until the day on which the decision for refund is made or until the day on which the allocation is made (hereinafter in this Article and paragraphs (5) and (6) of the Supplementary Provisions, the amount so calculated is referred to as “interest on refund”):

(i)the amount paid in excess, of customs duty (including its delinquent duty) for which amount of duty payable has become final and binding by reassessment, determination prescribed in paragraph (2) of Article 7-16 (Reassessment and determination) or official assessment determination (excluding the amount paid in excess as set forth in the next item): the day on which customs duty associated with the amount paid in excess was paid (if the day comes before the statutory time limit for payment of the customs duty (in the case of additional duty for deficient declaration or heavy additional duty referred to in paragraph (1), (3) or (4) of the preceding Article (with respect to paragraph (4), limited to the provisions concerning heavy additional duty referred to in paragraph (1) of the preceding Article), customs duty that has caused the additional duty to be paid) as provided for in paragraph (9) of Article 12 (Delinquent duty), then the statutory time limit for payment);

(ii)the amount paid in excess, associated with customs duty (including its delinquent duty) for which the amount of duty payable has decreased as a result of the reassessment made in response to the request for reassessment (including the determination, administrative determination or judgment given on an objection or action in relation to the disposition made in response to the request): the day on which a period of three months elapses from the day following the date on which the request for the reassessment is made or the day on which a period of one month elapses from the day following the date on which that reassessment is made, whichever comes earlier;

(iii)the amount paid in excess or in error, associated with customs duty, other than the amount paid in excess as set forth in the preceding two items: the day on which a period of one month elapses from the day following the date to be prescribed by Cabinet Order as the date of the payment in excess or in error.

(3)In the case referred to in the preceding paragraph, if the situation falls under any of the following items, the period specified therein shall be deducted from the period provided for in that paragraph:

(i)if any order of seizure or disposition of seizure, as prescribed in the provisions of the Civil Execution Act (Act No. 4 of 1979) is issued with respect to the right of restitution of the amount paid in excess or in error: the period until the day on which seven days elapse from the day following the date on which the order or disposition is delivered;

(ii)if provisional seizure is made with respect to the right of restitution of the amount paid in excess or in error: the period during which the provisional seizure is enforced.

(4)If the amount paid in excess or in error that is taken as a basis for calculation of interest on refund is less than 10,000 yen, paragraph (2) does not apply, and the amount paid in excess or in error is rounded down to the nearest 10,000 yen.

(5)If the amount of interest on refund calculated pursuant to the provisions of the preceding three paragraphs is less than 1,000 yen, the interest on refund is not added, and the amount of interest on refund is rounded down to the nearest 100 yen.

(6)For the purpose of application of paragraph (2) when payment in excess or in error occurs with respect to the customs duty paid in two or more installments, the amount of customs duty equivalent to the amount paid in excess or in error is deemed to have been paid on the day of the most recent payment and when the amount paid in excess or in error exceeds the amount paid on that day, the amount of customs duty equivalent to the excess amount is deemed to have been paid on the day of earlier payment on which the amount of customs duty paid in installments reaches the amount paid in excess or in error.

(7)When the amount paid in excess or in error as referred to in paragraph (1) is to be refunded, if there is any customs duty to be paid by a person entitled to receive the refund, the Director General of Customs, pursuant to the provisions of Cabinet Order, allocates the amount to be refunded to the customs duty.

(Collection of over-refunded customs duty, etc.)

Article 13-2.When repayment or refund of customs duty as prescribed in paragraph (2) of Article 10 (Refund of customs duty due to deterioration, damage, etc.) of the Customs Tariff Act or other laws concerning customs duty prescribed by Cabinet Order has been made in excess of the amount to be repaid or refunded on the basis of an application of a person who receives the repayment or refund, the Director General of Customs shall collect the amount of customs duty equivalent to the excess amount from a person who has received the repayment or refund, using the same rule as collection of national taxes.

(Complementary liability to pay customs duty in the case of shortfall in payment)

Article 13-3.When there is any shortfall in the amount of customs duty that has been paid for goods withdrawn with import permission or with the approval of the Director General of Customs as prescribed in paragraph (1) of Article 73 (Withdrawal of goods prior to import permission), if the domicile or residence of a person who was held to be an importer of these goods at the time of that permission or approval is unknown, or if that person claims that the person is not the importer of these goods and a customs broker (i.e., a customs broker provided for in item (iii) of Article 2 (Definitions) of the Customs Brokerage Act; hereinafter the same applies) who provided customs clearance services at the time of importation of the goods cannot identify a person who entrusted that broker with the services, then that customs broker and the importer of the goods are jointly and severally liable to pay the customs duty.

(Numerical rounding)

Article 13-4.Paragraphs (1) and (2) of Article 118 (Numerical rounding of the basis for assessment of national taxes) of the Act on General Rules for National Taxes apply mutatis mutandis to the numerical rounding of the basis for duty assessment; paragraphs (1) and (3) of Article 119 (Numerical rounding of the determined amount of national tax) of that Act apply mutatis mutandis to the numerical rounding of the amount of customs duty; paragraphs (1) and (2) of Article 120 (Numerical rounding of refund money, etc.) of that Act apply mutatis mutandis to numerical rounding of the amount of repayment or refund of customs duty.

(Restriction on period for reassessment, determination, etc.)

Article 14.Reassessment, determination or official assessment determination for customs duty may not be made on or after the date on which a period of five years has elapsed from the statutory time limit for payment, etc. of the customs duty concerned (or, with respect to official assessment determination associated with customs duty provided for in item (ii)(a) or (ii)(e) of paragraph (1) of Article 6-2 (Systems for determining amount of duty), for which declaration for the basis for duty assessment is made, a period of three years).

(2)Notwithstanding the provisions of the preceding paragraph, reassessment associated with the request for reassessment made within six months preceding the day on which the reassessment is no longer to be made pursuant to the provisions of the preceding paragraph or official assessment determination for additional duty for deficient declaration, additional duty for non-declaration or heavy additional duty to be made as a consequence of that reassessment may be made on or before the date on which a period of six months elapses from the day on which the request for reassessment is made.

(3)Notwithstanding the provisions of paragraph (1), filing of a written special declaration after time limit that is made within three months preceding the day on which official assessment determination is no longer to be made pursuant to the provisions of paragraph (1) or official assessment determination for additional duty for non-declaration (limited to additional duty for non-declaration to which paragraph (6) of Article 12-3 (Additional duty for non-declaration) applies) to be made as a consequence of the amended declaration referred to in item (ii) of paragraph (1) of Article 12-3 may be made on or before the day on which a period of three months elapses from the date of filing of the written special declaration after time limit or from the date on which the amended declaration referred to in that item is made.

(4)Notwithstanding the provisions of the preceding three paragraphs, if goods are imported in evasion of customs duty by deception or other wrongful acts or without paying customs duty payable, the reassessment, determination or official assessment determination for customs duty on these goods may be made on or before the date on which a period of seven years elapses from the statutory time limit for payment, etc.

(5)Notwithstanding the provisions of the preceding paragraphs, if the situation set forth in item (i) occurs, the reassessment, determination or official assessment determination to be made for customs duty on the basis of the grounds set forth in item (ii) may be made on or before the day on which a period of three years elapses from the date on which documents associated with the request referred to in item (ii) are issued to the competent authorities, etc. of the beneficiaries of preferences, etc. referred to in that item:

(i)when a customs official requests an importer of goods to present or submit documents provided for in Article 68 (Documents to be submitted at the time of export or import declaration) (including the electronic or magnetic records if such records are prepared or preserved in lieu of the documents), if the importer fails to present or submit these documents on or before the day to be specified, within the period not exceeding sixty days from the day on which the customs official requests the presentation or submission, by the customs official in consideration of the number of days usually required for preparing the documents (excluding if there are no grounds attributable to the importer for that failure);

(ii)when a customs official requests, based on the provisions of Article 8-4 (Verification of originating goods of beneficiaries of preferences, etc.) of the Temporary Customs Tariff Measures Act or on the provisions of the Economic Partnership Agreements (i.e., the Economic Partnership Agreements provided for in the proviso to paragraph (1) of Article 7-3 (Special emergency customs duty when import quantity exceeds threshold import quantity) of that Act) and other international engagements (hereinafter in this item referred to as “Economic Partnership Agreement, etc.”), the competent authorities of the beneficiaries of preferences, etc. (i.e., the beneficiaries of preferences, etc. as provided for in paragraph (1) of Article 8-2 (Preferential tariff, etc.) of that Act; hereinafter the same applies in this item) or of the parties to the Economic Partnership Agreements, etc. (i.e., the authorities competent to issue documents that certify that goods exported from the beneficiaries of preferences, etc. or the parties to the Economic Partnership Agreements, etc. are originating goods of the beneficiaries of preferences, etc. (i.e., originating goods of the beneficiaries of preferences, etc. provided for in paragraph (1) of Article 8-4 of that Act) or originating goods of the parties to the Economic Partnership Agreements (i.e., originating goods of the parties provided for in paragraph (1) of Article 12-4 (Verification of originating goods of the party under the Economic Partnership Agreement) of that Act) or competent to authorize a person who is qualified to prepare these documents), the customs authorities of the parties to the Economic Partnership Agreements, etc. (i.e., the authorities that enforce laws and regulations of the parties, equivalent to this Act, the Customs Tariff Act or other laws concerning customs duty (these laws are referred to as “laws and regulations concerning customs duty” in paragraph (1) of Article 108-2 and paragraph (1) of 108-3)) or the exporters or producers, of goods for which import declaration has been made (hereinafter referred to as “competent authorities, etc. of beneficiaries of preferences, etc.” in this item), to provide information associated with these goods (excluding when the request for provision of information is made after the day on which six months have elapsed from the day on which the reassessment, determination or official assessment determination with respect to customs duty is no longer to be made pursuant to the provisions of the preceding paragraphs, and limited when the notification of the request to the importer referred to in the preceding item is issued within three months from the day on which the request is made), if any violation is found in the determination of the amount of customs duty levied on these goods in consideration of the information provided by the competent authorities, etc. of the beneficiaries of preferences, etc.

(6)Notwithstanding the provisions of paragraph (1) or (2) or the preceding two paragraphs, if paragraph (2) of Article 10 (Special provisions for computation of period and for time limit) of the Act on General Rules for National Taxes, as applied mutatis mutandis pursuant to Article 2-2 or Article 2-3 (Extension of time limit due to a disaster, etc.) applies with respect to time limit for the request for reassessment, the reassessment under the request for reassessment that has been made within a period during which the request is permitted to be made pursuant to these provisions or the official assessment determination to be made for the additional duty for deficient declaration, additional duty for non-declaration or heavy additional duty that is to be made as a consequence of that reassessment may be made on or before the day on which a period of six months elapses from the date on which the request for that reassessment is made.

(7)The “statutory time limit for payment, etc.” as used in this Article and paragraph (1) of the next Article means the day of importation of goods (or, with respect to goods for which import permission is given, the day of the permission) on which the customs duty (in the case of additional duty for deficient declaration, additional duty for non-declaration or heavy additional duty, customs duty that causes the additional duty to be paid) is levied; provided, however, that the statutory time limit for payment, etc. for customs duty as set forth in the following items means the day or time limit as specified respectively in these items:

(i)(i) customs duty payable for specially declared goods: the time limit for filing of a written special declaration;

(ii)customs duty payable for 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): the day of the approval;

(iii)customs duty payable for postal items, received with the approval of the Director General of Customs pursuant to the provisions of paragraph (6) of Article 77 (Payment, etc. of customs duty on postal items): the day of the approval;

(iv)customs duty to be imposed pursuant to the provisions of paragraph (3) of Article 7 (Countervailing duty) or paragraph (2) of Article 8 (Anti-dumping duty), of the Customs Tariff Act or customs duty to be levied pursuant to the provisions of paragraph (1) of that Article, which is altered or maintained pursuant to the provisions of paragraph (16) of that Article: the day on which imposition or levying of the customs duty becomes due;

(v)customs duty to be immediately collected pursuant to the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty if a certain event occurs: the day on which the event occurs.

(Extinctive prescription of right to collect customs duty)

Article 14-2.The right of the Government to collect customs duty (hereinafter in this Article referred to as “right to collect customs duty”) is extinguished by prescription if the right is not exercised for a period of five years from the statutory time limit for payment of the customs duty, etc. (with respect to customs duty to be paid as a result of reassessment or official assessment determination, prescribed in paragraph (2) of the preceding Article, official assessment determination prescribed in paragraph (3) of that Article, reassessment, determination or official assessment determination, prescribed in paragraph (5) of that Article or reassessment or official assessment determination, prescribed in paragraph (6) of that Article, the day on which reassessment provided for in paragraph (2) of that Article, official assessment determination provided for in paragraph (3) of that Article, reassessment, determination or official assessment determination, provided for in paragraph (5) of that Article or reassessment provided for in paragraph (6) of that Article is made, instead of the statutory time limit for payment of the customs duty, etc.).

(2)Paragraph (2) of Article 72 (Extinctive prescription of right to collect national tax) and Article 73 (excluding item (iv) of paragraph (3)) (Postponement of completion and renewal of prescription), of the Act on General Rules for National Taxes apply mutatis mutandis to the prescription of right to collect customs duty. In this case, the term “the national tax of the part” in paragraph (1) of Article 73 of that Act is deemed to be replaced with “the customs duty of the part”; in item (i) of the same paragraph, the term “the national tax prescribed in item (ii) of paragraph (2) of Article 35 (Payment of national tax, etc. under the self-assessment system)” is deemed to be replaced with “the customs duty prescribed in paragraph (2) of Article 9 (Payment of customs duty, etc. under the self-assessment system) of the Customs Act”; in item (ii) of the same paragraph, the terms “heavy additional tax (limited to the heavy additional tax referred to in paragraph (1), (2) or (4) of Article 68 (Heavy additional tax) (with respect to paragraph (4), limited to the provisions concerning the heavy additional tax referred to in paragraph (1) or (2) of that Article))”, “these national taxes” and “paragraph (3) of Article 35” are deemed to be replaced with “heavy additional duty”, “these customs duties” and “paragraph (3) or (4) of Article 9 of the Customs Act”, respectively; in the main clause of paragraph (3) of the same Article, the terms “national tax”, “or refunded the whole or part of the amount of tax”, “relating to income tax when the special provisions for moving out to overseas, etc. apply” and “statutory time limit for payment” are deemed to be replaced with “customs duty”, “or relating to the goods for which customs duty is to be paid when they are imported without paying customs duty payable”, “relating to” and “statutory time limit for payment, etc., as provided for in paragraph (7) of Article 14 (Restriction on period for reassessment, determination, etc.) of the Customs Act (with respect to the statutory time limit for payment as a result of reassessment or official assessment determination, prescribed in paragraph (2) of that Article, official assessment determination prescribed in paragraph (3) of that Article, reassessment, determination or official assessment determination, prescribed in paragraph (5) of that Article or reassessment or official assessment determination, prescribed in paragraph (6) of that Article, the day on which reassessment provided for in paragraph (2) of that Article, official assessment determination provided for in paragraph (3) of that Article, reassessment, determination or official assessment determination, provided for in paragraph (5) of that Article or reassessment provided for in paragraph (6) of that Article is made; hereinafter referred to as “statutory time limit for payment” in this paragraph)”, respectively; in the proviso to the same paragraph, the term “national tax” is deemed to be replaced with “customs duty”; in item (i) of the same paragraph, the terms “declaration form for tax payment” and “that declaration form” are deemed to be replaced with “a document associated with declaration for duty payment (i.e., declaration for duty payment provided for in item (i) of paragraph (1) of Article 7-14 (Amended declaration) of the Customs Act)” and “a document associated with that declaration for duty payment”, respectively; in item (ii) of the same paragraph, the term “reassessment, determination, etc. (excluding official assessment determination associated with additional tax)” is deemed to be replaced with “reassessment or determination prescribed in paragraph (2) of Article 7-16 (Reassessment and determination) of the Customs Act, or official assessment determination (excluding official assessment determination associated with additional duty for deficient declaration, additional duty for non-declaration or heavy additional duty; hereinafter in this item referred to as “reassessment, determination, etc.)”; in item (iii) of the same paragraph, the term “national tax” is deemed to be replaced with “customs duty”; in paragraph (4) of the same Article, the terms “deferment or postponement of tax payment”, “national tax of the part” and “delinquent tax and interest tax” are deemed to be replaced with “deferment of duty payment”, “customs duty of the part” and “delinquent duty”, respectively; and in paragraphs (5) and (6) of the same Article, the terms “national taxes (incidental tax, delinquent tax and national tax” and “national tax related to the delinquent tax or interest tax associated with national tax” are deemed to be replaced with “customs duty (incidental duty and customs duty” and “customs duty related to the delinquent duty associated with customs duty”, respectively.

(3)Except as otherwise provided for in this Article, the provisions of the Civil Code (Act No. 89 of 1896) apply mutatis mutandis to the prescription of right to collect customs duty.

(Prescription of claim for refund)

Article 14-3.The claim against the Government for repayment or refund of customs duty due to payment in excess or in error, or under the provisions of laws concerning customs duty extinguishes by prescription if the claim is not exercised for a period of five years from the date on which the claim may initially be made.

(2)Paragraph (2) of Article 72 (Extinctive prescription of right to collect national tax) of the Act on General Rules for National Taxes and paragraph (3) of the preceding Article apply mutatis mutandis to the case referred to in the preceding paragraph.

Article 14-4.Deleted.

(Special provisions for allocation or collection from realized proceeds)

Article 14-5.With respect to goods provided for in paragraph (1) of Article 85 (Allocation of proceeds from public auction, etc.) (including when applied mutatis mutandis pursuant to Article 88 (Retained goods); hereinafter the same applies in this Article) or paragraph (5) or (6) of Article 134 (Allocation or collection from realized proceeds of retained objects, etc.), the amount of customs duty to be allocated or collected pursuant to these provisions and, when any shortfall in the amount of customs duty so allocated or collected is found, the amount of customs duty to be allocated or collected pursuant to the provisions of paragraph (1) of Article 85 or Article 11 (Collection using the same rule as collection of national taxes) are limited to the amount of proceeds from public auction or sale of the goods (when there are expenses incurred for public auction or sales and any other expenses to be collected prior to customs duty, the amount of the proceeds after these expenses are deducted).

Chapter 3 Vessels and Aircraft

(Procedures for entry into a port)

Article 15.Except in cases of fault in telecommunication facility or in other cases prescribed by Cabinet Order, a master of a vessel engaged in foreign trade that seeks to enter an open port shall, pursuant to the provisions of Cabinet Order, report in advance to the customs having jurisdiction over the location of the open port where the vessel seeks to enter, the name and country of registry of the vessel as well as matters specified by Cabinet Order concerning cargoes, passengers (only when passengers are on board the vessel) and crew members, of the vessel.

(2)When a vessel engaged in foreign trade enters an open port without reporting as referred to in the preceding paragraph, a master of the vessel shall, immediately after its entry into the port, submit to the customs a document stating matters required to be reported pursuant to the provisions of that paragraph.

(3)When a vessel engaged in foreign trade enters an open port, a master of the vessel shall, within twenty-four hours from the time of its entry into the port (if the period of time overlaps with any of the holidays of administrative organs (i.e., the days set forth in the items of paragraph (1) of Article 1 (Holidays of Administrative Organs) of the Act on Holidays of Administrative Organs (Act No. 91 of 1988); hereinafter the same applies), the time overlapped is excluded from the time count; the same applies in paragraph (1) of Article 18 (Simplified procedures for entry into, or departure from a port)), submit to the customs an entrance notice and a vessel’s stores manifest stating matters specified by Cabinet Order, and shall also present to customs officials a certificate of the country of registry of the vessel or other document issued in lieu thereof.

(4)The Director General of Customs, if it is found necessary in order to ensure the implementation of this Act, may request a master of a vessel to report the matters to be stated in the vessel’s stores manifest referred to in the preceding paragraph before its entry into the port. In this case, the master shall, except in cases of fault in telecommunication facility or in other cases prescribed by Cabinet Order, report before its entry into the port.

(5)When the request referred to in the preceding paragraph has been made, if a master of a vessel fails to report under that paragraph before its entry into the port, the master shall, immediately after its entry into the port, submit to the customs the vessel's stores manifest referred to in paragraph (3).

(6)Notwithstanding the provisions of paragraph (3), a master of a vessel who has reported under paragraph (4) is not required to submit the vessel’s stores manifest referred to in that paragraph.

(7)An operator, etc. of a vessel engaged in foreign trade who seeks to bring the vessel into an open port (i.e., an owner, lessee or charterer of the vessel who is the party to the transportation contract of cargoes provided for in this paragraph) shall, pursuant to the provisions of Cabinet Order, report to the customs having jurisdiction over the location of the open port where the vessel seeks to enter, the name and country of registry of the vessel as well as matters specified by Cabinet Order concerning cargoes, before the vessel departs from the port of shipment of the cargoes loaded on board the vessel at the time of its entry into the open port (the cargoes herein are limited to those packed in containers), unless it is found that a disaster or other special circumstances as specified by Cabinet Order exist.

(8)A consignor of cargoes referred to in the preceding paragraph, as specified by Cabinet Order (hereinafter simply referred to as “consignor” in this paragraph) shall, pursuant to the provisions of Cabinet Order, report to the customs having jurisdiction over the location of the open port where a vessel engaged in foreign trade seeks to enter, the name and country of registry of the vessel as well as matters specified by Cabinet Order concerning its cargoes before the vessel departs from the port of shipment of the cargoes of that consignor, unless it is found that a disaster or other special circumstances as specified by Cabinet Order exist.

(9)Except in cases of fault in telecommunication facility or in other cases prescribed by Cabinet Order, a captain of an aircraft engaged in foreign trade who seeks to bring the aircraft into a customs airport shall, pursuant to the provisions of Cabinet Order, report in advance to the customs having jurisdiction over the location of the customs airport where the aircraft seeks to enter, the registered mark and nationality of the aircraft as well as matters specified by Cabinet Order concerning cargoes, passengers (only when passengers are on board the aircraft) and crew members, of the aircraft.

(10)If an aircraft engaged in foreign trade enters a customs airport without having reported under the preceding paragraph, a captain of the aircraft shall, immediately after its entry into the airport, submit to the customs a document stating matters required to be reported pursuant to the provisions of that paragraph.

(11)If an aircraft engaged in foreign trade enters a customs airport, a captain of the aircraft shall immediately submit to the customs an entrance notice stating matters specified by Cabinet Order.

(12)The Director General of Customs, if it is found necessary in order to ensure the implementation of Article 69-11 (Goods the importation of which is prohibited) or other provisions of this Act, may request an operator or other person specified by the Ministry of Finance Order, of an aircraft engaged in foreign trade that seeks to enter a customs airport with passengers on board (limited to an aircraft operated by a person who has been given the permission referred to in paragraph (1) of Article 100 (Permission), paragraph (1) of Article 129 (International air transport services by foreign nationals) or Article 130-2 (Transport of passenger, etc. departing from, or arriving in Japan), of the Civil Aeronautics Act (Act No. 231 of 1952) (hereinafter referred to as “air carrier”)) to report, before its entry into the airport, matters specified by Cabinet Order concerning persons who have booked its flight (i.e., persons who have booked airline tickets; hereinafter the same applies), details of their bookings, their personal effects and the procedures for boarding the aircraft.

(13)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report as prescribed by Cabinet Order.

(14)Reporting prescribed in paragraph (1) (excluding reporting on matters concerning cargoes), submission of a document prescribed in paragraph (2) (excluding submission of a document stating matters concerning cargoes), reporting prescribed in paragraphs (7) to (9) or the preceding paragraph or submission of a document prescribed in paragraph (10) shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which such reporting or submission of the document cannot be done by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Reporting on matters concerning cargoes)

Article 15-2.When matters concerning cargoes have been reported pursuant to the provisions of paragraph (1), (7), (8) or (9) of the preceding Article, if the Director General of Customs finds it necessary to clarify the details thereof in order to ensure the implementation of this Act, the Director General of Customs may, pursuant to the provisions of Cabinet Order, request a report from a consignee of the cargoes or other person specified by Cabinet Order before a vessel or aircraft enters a port or airport.

(2)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report without delay.

(Procedures for entry into a port of special vessels, etc.)

Article 15-3.Except in cases of fault in telecommunication facility or in other cases prescribed by Cabinet Order, a master or captain of a special vessel, etc. (i.e., a vessel or aircraft coming and/or going between Japan and a foreign country other than a vessel or aircraft engaged in foreign trade (excluding public vessels or aircraft, or other vessels or aircraft specified by Cabinet Order); hereinafter the same applies) that seeks to enter an open port or customs airport shall, pursuant to the provisions of Cabinet Order, report in advance to the customs having jurisdiction over the location of the open port or customs airport where the vessel or aircraft seeks to enter the name or registered mark and the name of country of registry or the nationality, of the special vessel, etc. as well as matters specified by Cabinet Order concerning its passengers (only when passengers are on board the special vessel, etc.) and crew members.

(2)When a special vessel, etc. enters an open port or customs airport without having reported under the preceding paragraph, its master or captain shall, immediately after its entry into the port or airport, submit to the customs a document stating matters required to be reported pursuant to the provisions of the preceding paragraph.

(3)If a special vessel, etc. enters an open port or customs airport, its master or captain shall immediately submit to the customs an entrance notice stating matters specified by Cabinet Order.

(4)The Director General of Customs, if it is found necessary in order to ensure the implementation of Article 69-11 (Goods the importation of which is prohibited) or other provisions of this Act, may request an operator of a special aircraft (i.e., an aircraft falling under the category of special vessels, etc.; hereinafter the same applies) that seeks to enter a customs airport with passengers on board (limited to an aircraft operated by an air carrier) or other persons specified by the Ministry of Finance Order, to report, before its entry into the airport, matters specified by Cabinet Order, concerning persons who have booked its flight, details of their bookings, their personal effects and the procedures for boarding the aircraft.

(5)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report as prescribed by Cabinet Order.

(6)Reporting prescribed in paragraph (1) or the preceding paragraph or submission of a document prescribed in paragraph (2) shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which such reporting or submission of a document cannot be done by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Loading or unloading of goods)

Article 16.Loading of goods onto, or unloading of goods from a vessel or aircraft engaged in foreign trade (hereinafter referred to as “vessel, etc. engaged in foreign trade”) shall not be carried out if reporting on matters concerning cargoes as prescribed in paragraph (1) of Article 15 (Procedures for entry into a port) has not been done (excluding when a document stating matters concerning cargoes as prescribed in paragraph (2) of that Article has been submitted) or reporting on matters concerning cargoes as prescribed in paragraph (9) of that Article has not been done (excluding when a document stating matters concerning cargoes as prescribed in paragraph (10) of that Article or paragraph (4) of Article 18 (Simplified procedures for entry into, or departure from a port) has been submitted); provided, however, that this does not apply to personal effects of passengers and crew members, postal items (including correspondence not falling under postal items; the same applies in Articles 18, 19, paragraph (2) of Article 24 and paragraph (1) of Article 63) and vessel’s and aircraft’s stores.

(2)A person who seeks to load foreign goods onto or unload foreign goods from a vessel or aircraft shall, pursuant to the provisions of Cabinet Order, present to customs officials a document concerning loading or unloading of the goods. The same applies to a person who seeks to load domestic goods onto, or unloads domestic goods from a vessel, etc. engaged in foreign trade.

(3)In addition to what is provided for in paragraph (1), unloading from a vessel of cargoes provided for in paragraph (7) of Article 15 shall not be carried out if reporting on these cargoes has not been done as prescribed in paragraphs (7) and (8) of that Article; provided, however, that this does not apply if any reporting that, as may be prescribed by Cabinet Order, has been done in lieu of such reporting and permission of the Director General of Customs has been given pursuant to the provisions of Cabinet Order.

(Procedures for departure from a port)

Article 17.When a vessel, etc. engaged in foreign trade seeks to depart from an open port or customs airport, its master or captain shall submit to the customs a clearance notice stating matters specified by Cabinet Order and shall obtain permission of the Director General of Customs. In this case, the Director General of Customs, if it is found necessary in order to ensure the implementation of this Act, may request the master or the captain to submit a document stating matters specified by Cabinet Order, concerning cargoes, passengers (only when passengers are on board the vessel, etc. engaged in foreign trade) and crew members.

(2)In the case referred to in the preceding paragraph, if tonnage dues and special tonnage dues are payable for the vessel engaged in foreign trade pursuant to the provisions of the Tonnage Dues Act (Act No. 37 of 1957) and the Special Tonnage Dues Act (Act No. 38 of 1957), the permission referred to in the preceding paragraph is not given unless these dues have been paid; provided, however, that this does not apply if security prescribed in paragraph (1) of Article 9 (Security) of the Tonnage Dues Act and paragraph (1) of Article 7 (Security) of the Special Tonnage Dues Act has been provided.

(3)The Director General of Customs, if it is found necessary in order to ensure the implementation of Article 69-2 (Goods the exportation of which is prohibited) or other provisions of this Act, may request an operator of an aircraft engaged in foreign trade that seeks to depart from a customs airport with passengers on board (limited to an aircraft operated by an air carrier) or other person specified by the Ministry of Finance Order to report, before its departure from the airport, matters specified by Cabinet Order concerning persons who have booked its flight, details of their bookings, their personal effects and the procedures for boarding the aircraft.

(4)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report as provided for by Cabinet Order.

(5)Submission of a document prescribed in the second sentence of paragraph (1) (excluding a document associated with the matters concerning cargoes) or reporting prescribed in the preceding paragraph shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which submission of the document or the reporting cannot be done by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Procedures for departure from a port of special vessels, etc.)

Article 17-2.When a special vessel, etc. seeks to depart from an open port or a customs airport, its master or captain shall submit to the customs a clearance notice stating matters as specified by Cabinet Order. In this case, the Director General of Customs, if it is found necessary in order to ensure the implementation of this Act, may request the master or the captain to submit a document stating matters specified by Cabinet Order concerning passengers (only when passengers are on board the special vessel, etc.) and crew members.

(2)The Director General of Customs, if it is found necessary in order to ensure the implementation of Article 69-2 (Goods the exportation of which is prohibited) or other provisions of this Act, may request an operator of a special aircraft that seeks to depart from a customs airport with passengers on board (limited to an aircraft operated by an air carrier) or other persons specified by the Ministry of Finance Order to report, before its departure from the airport, matters specified by Cabinet Order concerning persons who have booked its flight, details of their bookings, their personal effects and the procedures for boarding the aircraft.

(3)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report in accordance with the provisions of Cabinet Order.

(4)Submission of a document prescribed in the second sentence of paragraph (1) or reporting prescribed in the preceding paragraph shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which submission of the document or the reporting cannot be done by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Simplified procedures for entry into, or departure from a port)

Article 18.When a vessel engaged in foreign trade enters an open port, if it departs from the port within twenty-four hours after its entry without loading or unloading goods other than personal effects of crew members, postal items and vessel’s stores or in such other cases as prescribed by Cabinet Order, paragraphs (3) to (5) of Article 15 (Procedures for entry into a port) do not apply.

(2)In the case referred to in the preceding paragraph, a master of a vessel engaged in foreign trade referred to in that paragraph shall, no later than its departure, submit to the customs an entrance notice stating matters specified by Cabinet Order.

(3)When an aircraft engaged in foreign trade enters a customs airport, if it departs therefrom without loading or unloading goods other than personal effects of crew members, postal items and aircraft’s stores or in such other cases as prescribed by Cabinet Order (referred to as “case of short stay, etc.” in the next paragraph), paragraphs (9) to (11) of Article 15 and paragraph (1) of Article 17 (Procedures for departure from a port) do not apply; provided, however, that with respect to matters concerning crew members, a captain of the aircraft shall, except when specified by Cabinet Order, report as prescribed in paragraph (9) of Article 15 or submit a document prescribed in paragraph (10) of that Article.

(4)In the case referred to in the preceding paragraph, a captain of an aircraft engaged in foreign trade referred to in that paragraph shall, no later than its departure, notify the customs that its stay falls under the case of short stay, etc., and if, after its entry into an airport, its stay ceases to fall under the case of short stay, etc., the captain shall, pursuant to the provisions of Cabinet Order, submit in advance to the customs a document stating matters required to be reported pursuant to the provisions of paragraph (9) of Article 15 (excluding matters reported or submitted in writing pursuant to the provisions of the proviso to the preceding paragraph).

(5)Submission of a document prescribed in the preceding paragraph shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which the document cannot be submitted by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Simplified procedures for entry into, or departure from a port of special vessels, etc.)

Article 18-2.When a vessel falling under the category of a special vessel, etc. (referred to as “special vessel” in the next paragraph) enters an open port, if it departs therefrom within twenty-four hours after its entry without loading or unloading any personal effects of passengers or in such other cases as prescribed by Cabinet Order (referred to as “case of short stay, etc.” in the next paragraph), Article 15-3 (Procedures for entry into a port of special vessels, etc.) and paragraph (1) of Article 17-2 (Procedures for departure from a port of special vessels, etc.) do not apply; provided, however, that with respect to matters concerning crew members, the master of the vessel shall, except when specified by Cabinet Order, report under paragraph (1) of Article 15-3 or submit a document prescribed in paragraph (2) of that Article.

(2)In the case referred to in the preceding paragraph, a master of a special vessel referred to in that paragraph shall, no later than its departure, submit to the customs an entrance notice stating matters specified by Cabinet Order, and if, after its entry, its stay ceases to fall under the case of short stay, etc., the master shall, pursuant to the provisions of Cabinet Order, submit to the customs in advance a document stating matters required to be reported pursuant to the provisions of paragraph (1) of Article 15-3 (excluding matters reported or submitted in writing pursuant to the provisions of the proviso to the preceding paragraph).

(3)When a special aircraft enters a customs airport, if it departs therefrom without loading or unloading any personal effects of passengers or in such other cases as prescribed by Cabinet Order (referred to as “case of short stay, etc.” in the next paragraph), paragraphs (1) to (3) of Article 15-3 and paragraph (1) of Article 17-2 do not apply; provided, however, that with respect to matters concerning crew members, the captain shall, except when specified by Cabinet Order, report under paragraph (1) of Article 15-3 or submit a document prescribed in paragraph (2) of that Article.

(4)In the case referred to in the preceding paragraph, a captain of a special aircraft referred to in that paragraph shall, no later than its departure, notify the customs that its stay falls under the case of short stay, etc., and if, after its entry, its stay ceases to fall under the case of short stay, etc., the captain shall, pursuant to the provisions of Cabinet Order, submit to the customs in advance a document stating matters required to be reported pursuant to the provisions of paragraph (1) of Article 15-3 (excluding matters reported or submitted in writing pursuant to the provisions of the proviso to the preceding paragraph).

(5)Submission of a document prescribed in paragraph (2) or the preceding paragraph shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which the document cannot be submitted by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Loading or unloading of goods outside office hours)

Article 19.When a person seeks to load or unload goods onto or from a vessel, etc. engaged in foreign trade or other vessels or aircraft loaded with foreign goods or to load foreign goods onto a vessel or aircraft, outside office hours of customs offices (i.e., the hours determined by the Director General of Customs, taking into account of the types of services provided at the customs offices or other circumstances, and publicly notified; the same applies in paragraph (1) of Article 98), the person shall notify the Director General of Customs of such loading or unloading in advance; provided, however, that this does not apply with respect to personal effects of passengers and crew members, postal items and vessel’s or aircraft’s stores.

(Entry into, or departure from a closed port)

Article 20.A master or captain of a vessel, etc. engaged in foreign trade shall not bring the vessel, etc. into or out of a closed port unless permission of the Director General of Customs is given; provided, however, that this does not apply if the vessel, etc. enters or leaves a quarantine area exclusively for the purpose of quarantine inspection or if shipwreck or other unavoidable accident occurs.

(2)When a vessel, etc. engaged in foreign trade enters a closed port due to any accident referred to in the proviso to the preceding paragraph, its master or captain shall immediately notify the accident, together with the cause therefor, to a customs official (or, to a police official if no customs official is available).

(3)The Director General of Customs, if it is found necessary in order to ensure the implementation of Article 69-2 (Goods the exportation of which is prohibited), Article 69-11 (Goods the importation of which is prohibited) or other provisions of this Act, may request an operator of an aircraft engaged in foreign trade that enters or departs from a closed airport with passengers on board (limited to an aircraft operated by an air carrier) or other persons specified by the Ministry of Finance Order to report, before its entry into or departure from the airport, matters specified by Cabinet Order concerning persons who have booked its flight, the details of their bookings, their personal effects and the procedures for boarding the aircraft.

(4)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report in accordance with the provisions of Cabinet Order.

(5)Reporting prescribed in the preceding paragraph shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which such reporting cannot be done by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Entry into, or departure from a closed port of special vessels, etc.)

Article 20-2.Except in cases of fault in telecommunication facility or in other cases prescribed by Cabinet Order, a master or captain of a special vessel, etc. who seeks to bring a special vessel, etc. into a closed port shall, pursuant to the provisions of Cabinet Order, report in advance to the customs having jurisdiction over the location of the closed port where the special vessel, etc. seeks to enter, its name or registered mark and the country of registry or nationality as well as matters specified by Cabinet Order concerning its passengers (only when passengers are on board the special vessel, etc.) and crew members.

(2)If a special vessel, etc. enters a closed port without having reported as referred to in the preceding paragraph, its master or captain shall, immediately after its entry, submit to the customs a document stating matters required to be reported pursuant to the provisions of the preceding paragraph.

(3)If a special vessel, etc. enters a closed port, its master or captain shall immediately submit to the customs an entrance notice stating matters specified by Cabinet Order.

(4)Before a special vessel, etc. departs from a closed port, its master or captain shall submit to the customs a clearance notice stating matters specified by Cabinet Order. In this case, the Director General of Customs, if it is found necessary in order to ensure the implementation of this Act, may request the master or the captain to submit a document stating matters specified by Cabinet Order concerning passengers (only when passengers are on board the special vessel, etc.) and crew members.

(5)The Director General of Customs, if it is found necessary in order to ensure the implementation of Article 69-2 (Goods the exportation of which is prohibited), Article 69-11 (Goods the importation of which is prohibited) or other provisions of this Act, may request an operator of a special aircraft that seeks to enter or to depart from a closed airport with passengers on board (limited to an aircraft operated by an air carrier) or other persons specified by the Ministry of Finance Order to report, before its entry or departure, matters specified by Cabinet Order concerning passengers who have booked its flight, the details of their bookings, their personal effects and the procedures for boarding the special aircraft.

(6)A person who is requested to report pursuant to the provisions of the preceding paragraph shall report in accordance with the provisions of Cabinet Order.

(7)Reporting prescribed in paragraph (1) or the preceding paragraph or submission of a document prescribed in paragraph (2) or the second sentence of paragraph (4) shall be done by means of electronic data processing system; provided, however, that this does not apply in the case prescribed by the Ministry of Finance Order as the case in which such reporting or submission of a document cannot be done by means of electronic data processing system due to failure in telecommunication lines or for other cause.

(Temporary landing of foreign goods)

Article 21.If a master of a vessel or a captain of an aircraft seeks to temporarily land foreign goods (including unloading; hereinafter the same applies), the master or the captain shall notify this to the customs in advance (or, a customs official in an area where no customs office is established, or a police official if no customs official is available); provided, however, that when the master or the captain cannot notify in advance due to shipwreck or other unavoidable accident, the master or the captain shall notify that fact immediately after having landed foreign goods.

(Notification, etc. of call at a foreign port of coastal vessels, etc.)

Article 22.If a coastal vessel or domestic aircraft (hereinafter referred to as “coastal vessel, etc.”) returns to Japan after having called at a foreign port due to shipwreck or other unavoidable accident, its master or captain shall immediately notify this to the customs and shall, if vessel’s or aircraft’s stores were loaded in a foreign country, submit their manifest to the customs.

(Loading, etc. of vessel’s or aircraft’s stores)

Article 23.Vessel’s or aircraft’s stores that are foreign goods arrived in Japan from abroad, may be loaded on board a vessel or aircraft as foreign goods, provided that they are, pursuant to the provisions of Cabinet Order, declared to the Director General of Customs and loaded, with the approval of the Director General of Customs, from a customs area onto a vessel or aircraft coming and/or going between Japan and a foreign country (including similar deep-sea fishing vessels or other vessels prescribed by Cabinet Order). In this case, if the vessel’s or aircraft’s stores are prescribed by Cabinet Order as those that do not cause any trouble in customs control, the Director General of Customs may give blanket approval for loading the stores for a period specified by the Director General of Customs within a period prescribed by Cabinet Order.

(2)A person who seeks to load vessel’s or aircraft’s stores that are domestic goods, onto a vessel or an aircraft coming and/or going between Japan and a foreign country shall, pursuant to the provisions of Cabinet Order, make a declaration to the Director General of Customs and obtain approval from the Director General of Customs; provided, however, that when the vessel or aircraft enters a closed port due to shipwreck or other unavoidable accident and it is urgently necessary to load the vessel’s or aircraft’s stores, the person shall notify this to a police official in advance if no customs official is available.

(3)The approval referred to in the preceding two paragraphs shall be given if the types and quantities of vessel’s or aircraft’s stores subject to the approval are deemed to be appropriate in consideration of the type, the tonnage or empty weight, the number of days of voyage or flight and the number of passengers and crew members, etc., of the vessel or aircraft.

(4)The Director General of Customs, when giving the approval referred to in paragraph (1), shall specify a period for loading, deemed to be reasonable. In this case, if the Director General of Customs finds it necessary due to a disaster occurred after the period has been specified or for other unavoidable reason, the period so specified may be extended.

(5)A person who has obtained the approval referred to in paragraph (1) shall, when loading of vessel’s or aircraft’s stores subject to the approval has been completed, submit immediately to the customs a document certifying that fact pursuant to the provisions of Cabinet Order; provided, however, that when blanket approval has been given pursuant to the provisions of the second sentence of that paragraph, the person may, for each of the shorter periods designated by the Director General of Customs who has given the approval by subdividing the whole period of the approval pursuant to the provisions of Cabinet Order, collectively submit documents that certify the fact concerning the vessel’s or aircraft’s stores loaded within that shorter period.

(6)If vessel’s or aircraft’s stores for which approval has been given under paragraph (1) are not loaded on board a vessel or aircraft that is concerned with the approval within the period designated pursuant to the provisions of paragraph (4), customs duty shall immediately be collected from a person who has obtained the approval; provided, however, that this does not apply if the vessel’s or aircraft’s stores have been brought into a customs area, if they were lost due to a disaster or for other unavoidable cause or if they were destroyed with prior approval of the Director General of Customs.

(Traffic, etc. between vessels or aircraft and land)

Article 24.Traffic between a vessel or aircraft coming and/or going between Japan and a foreign country and land (excluding the traffic falling under the next paragraph), or loading or unloading of goods, except when permission is given by the Director General of Customs, shall be carried out through the designated place.

(2)The traffic to a vessel or aircraft coming and/or going between Japan and a foreign country, if its purpose is to deliver and/or receive goods (excluding goods for which delivery and receipt have been approved or permitted pursuant to the provisions of this Act and postal items), shall be carried out, pursuant to the provisions of Cabinet Order, with permission of the Director General of Customs and through the designated place.

(3)The Director General of Customs may elect not to give the permission referred to in the preceding paragraph if a person who seeks the permission falls under any of the following items:

(i)if the person was sentenced to a penalty or was subject to a disposition of administrative notification in violation of the provisions of this Act, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed or from the day on which the matters indicated in the notification were performed;

(ii)if the person was sentenced to imprisonment without work or a heavier punishment in violation of the provisions of the laws and regulations other than this Act, and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(iii)if the person is an agent, employee or worker of a juridical person whose officer falls under any of the preceding two items.

(4)The traffic between a vessel or aircraft coming and/or going between Japan and a foreign country and a coastal vessel, etc. is not permitted unless permission is given by the Director General of Customs.

(Change in status of a vessel or aircraft)

Article 25.When a master of a vessel or a captain of an aircraft seeks to use a vessel or aircraft other than a vessel, etc. engaged in foreign trade as a vessel, etc. engaged in foreign trade, its master or captain shall notify this to the customs in advance. The same applies when seeking to use a vessel, etc. engaged in foreign trade as a vessel or aircraft other than a vessel, etc. engaged in foreign trade.

(2)When a master of a vessel or a captain of an aircraft seeks to use a coastal vessel, etc. as a special vessel, etc., its master or captain shall notify this to the customs in advance. The same applies when seeking to use a special vessel, etc. as a coastal vessel, etc.

(Acting for a master or captain)

Article 26.Any acts to be carried out by a master of a vessel or a captain of an aircraft pursuant to the provisions of any of paragraphs (1) to (5) and (9) to (11) of Article 15 (Procedures for entry into a port), paragraphs (1) to (3) of Article 15-3 (Procedures for entry into a port of special vessels, etc.), paragraph (1) of Article 17 (Procedures for departure from a port), paragraph (1) of Article 17-2 (Procedures for departure from a port of special vessels, etc.), paragraphs (2) to (4) of Article 18 (Simplified procedures for entry into, or departure from a port), paragraphs (1) to (4) of Article 18-2 (Simplified procedures for entry into, or departure from a port of special vessels, etc.), paragraph (1) or (2) of Article 20 (Entry into, or departure from a closed port), paragraphs (1) to (4) of Article 20-2 (Entry into, or departure from a closed port of special vessels, etc.), Article 21 (Temporary landing of foreign goods) or the preceding Article may also be carried out by an owner, etc. of the vessel or aircraft as provided for in these provisions (i.e., an owner or administrator, or an agent of the owner, administrator, master of a vessel or captain of an aircraft).

(Acting agent for a master or captain)

Article 27.The provisions of this Chapter applicable to a master of a vessel or a captain of an aircraft, if the master or captain cannot perform duties, apply to a person who acts for the master or captain to perform the duties.

(Provision of facilities for customs officials)

Article 28.When customs officials board a vessel or an aircraft for performing duties, its master or captain shall provide customs officials with space and other facilities necessary for the performance of their duties.

Chapter 4 Customs Areas

Section 1 General Provisions

(Types of customs areas)

Article 29.Customs areas include five types, which are designated customs areas, customs warehouses, customs factories, customs exhibition sites and integrated customs areas.

(Restriction on places for storage of foreign goods)

Article 30.No foreign goods may be stored at places other than customs areas; provided, however, that this does not apply to foreign goods set forth in the following:

(i)wreckage;

(ii)goods that are found by the Director General of Customs to be difficult or significantly inappropriate to be stored in customs areas and hence are permitted to be stored at a place and for a period, designated by the Director General of Customs;

(iii)specific postal items (i.e., postal items (only those imported) notified under paragraph (5) of Article 76 (Simplified export or import procedures for postal items) and postal items containing correspondence only; the same applies in paragraph (1) of Article 63-9), objects seized pursuant to the provisions of the Code of Criminal Procedure (Act No. 131 of 1948) and other goods prescribed by Cabinet Order;

(iv)postal correspondence (i.e., postal correspondence provided for in paragraph (3) of Article 2 (Definitions) of the Act on Service of Correspondence by Private Business Operator; the same applies in Article 74, Article 78-3 and paragraphs (1) and (2) of Article 122) if the Director General of Customs finds that no trouble occurs in customs control;

(v)goods for which an export declaration under specific entrustment as provided for in the second sentence of paragraph (1) of Article 67-3 (Special provisions for export declaration), an export declaration of specific manufactured goods as provided for in paragraph (2) of that Article or a specific export declaration as provided for in paragraph (3) of that Article has been filed and for which export permission has been given by the Director General of Customs (hereinafter referred to as “special export goods”).

(2)Notwithstanding the provisions of the preceding paragraph, goods set forth in any of items (i) to (iv), (v)-2, (vi) and (viii) to (x) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) (limited to those arrived in Japan for purposes other than for importation; in the case of goods set forth in item (ix) of that paragraph, those that infringe a layout-design exploitation right only are excluded) may not be stored in customs areas.

Article 31.Deleted.

(Temporary taking out of samples)

Article 32.A person who seeks to temporarily take out foreign goods stored in a customs area from that area as samples shall obtain permission of the Director General of Customs.

Article 33.Deleted.

(Disposal of foreign goods)

Article 34.A person who seeks to dispose of foreign goods stored in a customs area shall notify this to the customs in advance; provided, however, that this does not apply if approval for destruction has been given pursuant to the provisions of the proviso to paragraph (1) of Article 45 (Liability for payment of customs duty, etc. of a person who has obtained permission) (including the cases as applied mutatis mutandis pursuant to Articles 36, 41-3, 61-4, 62-7 and 62-15).

(Obligation of record keeping)

Article 34-2.A person who administers goods in a customs area (excluding a customs factory and customs exhibition site) shall maintain books for foreign goods that the person administers (excluding correspondence; the same applies in paragraph (1) of Article 43-2, paragraph (1) of Article 43-3, Article 61-3 (including the cases as applied mutatis mutandis pursuant to Article 62-7), paragraph (1) of Article 62-3, Article 62-9, Article 62-10 and paragraph (1) of Article 80) or for goods that the person seeks to export (excluding correspondence), and shall state in these books matters prescribed by Cabinet Order.

(Dispatch of customs officials)

Article 35.The Director General of Customs may dispatch customs officials to a customs area and have them handle part of the customs services therein.

(Mutatis mutandis application of provisions on customs areas, etc.)

Article 36.Article 32 (Temporary taking out of samples), Article 34 (Disposal of foreign goods) and Article 45 (Liability for payment of customs duty of a person who has obtained permission of a customs warehouse) apply mutatis mutandis to goods for which permission is given by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Foreign goods stored with permission at a place other than customs areas). In this case, the term “a customs area” in Articles 32 and 34 and the term “a customs warehouse” in Article 45 are deemed to be replaced with “a place designated by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30”; the term “that area” in Article 32 is deemed to be replaced with “that place”; and the term “the customs warehouse” in paragraphs (1) and (3) of Article 45 is deemed to be replaced with “that place”.

(2)If a person seeks to inspect, repack, sort or carry out other normal handling operations with respect to goods for which permission has been given by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Foreign goods stored with permission at a place other than customs areas), the person shall notify this to the customs in advance.

Section 2 Designated Customs Areas

(Designation or revocation of a designated customs area)

Article 37.A designated customs area means the land, buildings or other facilities owned or administered by the Government, by local public entities or by a juridical person that constructs or administers port or airport facilities and is prescribed by Cabinet Order, which are designated by the Minister of Finance as a place where foreign goods may be loaded, unloaded, transported or temporarily stored for the purpose of ensuring simplified and prompt handling of customs procedures in open ports or customs airports.

(2)If the Minister of Finance finds that the whole or part of a designated customs area is not necessary to be maintained due to decrease in foreign trade conducted through the customs area or on other grounds, the Minister of Finance may revoke the designation referred to in the preceding paragraph.

(3)When the Minister of Finance seeks to designate a place as a designated customs area, the Minister of Finance shall, in advance, consult with the owner or administrator of the land, buildings or other facilities that the Minister of Finance seeks to designate, hold public hearings and provide exporters, importers and other parties interested in the designation with an opportunity to state their opinions. The same applies when the Minister of Finance seeks to revoke the designation of a designated customs area.

(4)When the Minister of Finance designates a place as a designated customs area or revokes the designation, the Minister of Finance shall immediately give a public notice thereof.

(5)The Minister of Finance may, pursuant to the provisions of Cabinet Order, delegate part of the authority to make the designation or revocation prescribed in paragraph (1) or (2) to the Director General of Customs.

(Disposition, etc. of a designated customs area)

Article 38.The owner or administrator of land, buildings or other facilities that have been designated as a designated customs area shall, before performing any acts set forth in the following items, consult with the Director General of Customs; provided, however, that if the owner or administrator is not the Government or local public entity, the owner or administrator shall obtain approval of the Director General of Customs:

(i)transfer, exchange, lease or other disposition of the land, buildings or other facilities, or change in use;

(ii)construction work in the land or construction of new buildings or other facilities on the land;

(iii)reconstruction, relocation, removal or other construction work on the buildings or facilities.

(2)In the case referred to in the preceding paragraph, if the Director General of Customs finds that the acts involved in the consultation or application for approval as referred to in the preceding paragraph does not interfere with proper use of the designated customs area and does not cause any trouble in ensuring the implementation of this Act, the Director General of Customs shall give consent to, or approve these acts.

(3)If the Director General of Customs finds it necessary for efficient execution of customs services in a designated customs area, the Director General of Customs may, with the consent of the owner or administrator of that area, install partitions or other similar structures in that area in order to separate the designated customs area from other area.

(4)The owner or administrator of the land, buildings or other facilities that have been designated as a designated customs area (including a person who leases port facilities from the person prescribed by Cabinet Order as referred to in paragraph (1) of the preceding Article (Designation of a designated customs area)) may not refuse loading, unloading, transport or storage of foreign goods or goods that a person seeks to export, without legitimate grounds.

(Goods that may be brought in)

Article 39.The Director General of Customs, if it is found necessary in order to achieve the intended use of a designated customs area, may specify the types of goods that may be brought into the area.

(Handling of goods)

Article 40.In a designated customs area, foreign goods or goods that a person seeks to export may undergo, in addition to the acts provided for in paragraph (1) of Article 37 (Designation of a designated customs area), inspection, repacking, sorting or other normal handling operations of these goods.

(2)In a designated customs area, foreign goods or goods that a person seeks to export may undergo, in addition to the acts provided for in the preceding paragraph, the acts permitted by the Director General of Customs, including display of samples, simple processing or other similar acts.

(3)The Director General of Customs, if the acts referred to in the preceding paragraph are deemed not to interfere with proper use of a designated customs area and not to cause any trouble in ensuring the implementation of this Act, shall give the permission referred to in the preceding paragraph.

(Foreign goods stored after revocation of designation)

Article 41.When designation of a designated customs area has been revoked, if there remain any foreign goods (other than special export goods; the same applies in paragraph (3) of Article 47 (including the cases as applied mutatis mutandis pursuant to Articles 61-4, 62-7 and 62-15) and paragraph (1) of Article 62-6) in that area at the time of the revocation, the place the designation of which has been revoked is deemed to be a designated customs area for these goods for a period to be designated by the Director General of Customs.

(Suspension, etc. of bringing foreign goods into a designated customs area)

Article 41-2.The Director General of Customs, if a person who administers goods in a designated customs area (in the case of a juridical person, its officers are included; hereinafter referred to as “administrator of goods” in this Article) or the agent, manager or other employee violates the provisions of this Act in connection with the business in the designated customs area, may have the act of bringing into the designated customs area foreign goods or goods sought to be exported that are administered by that administrator of goods suspended, for a specified period.

(2)The Director General of Customs, when seeking to have the act of bringing goods into a designated customs area suspended pursuant to the provisions of the preceding paragraph, shall in advance give a notice thereof to the administrator of goods and the owner or administrator of the land, buildings or other facilities of the designated customs area and shall request attendance of these persons or their agents for hearing their opinions or otherwise provide them with an opportunity to produce evidence for explanation.

(Mutatis mutandis application of provisions on customs warehouses)

Article 41-3.Article 45 (Liability for payment of customs duty of a person who obtains permission of a customs warehouse) applies mutatis mutandis to foreign goods stored in a designated customs area. In this case, the term “person who has obtained permission of the customs warehouse” in paragraphs (1) and (3) of that Article is deemed to be replaced with “person who administers the foreign goods”.

Section 3 Customs Warehouses

(Permission of a customs warehouse)

Article 42.A customs warehouse means a place that, pursuant to the provisions of Cabinet Order, is permitted by the Director General of Customs as a place where foreign goods may be loaded, unloaded, transported or stored.

(2)The period of permission referred to in the preceding paragraph may not exceed ten years; provided, however, that permission may, pursuant to the provisions of Cabinet Order, be renewed for a specified period of up to ten years.

(3)The Director General of Customs, if the permission referred to in paragraph (1) is given or the permission referred to in the proviso to the preceding paragraph is renewed, shall immediately give a public notice thereof.

(Requirements for permission)

Article 43.The Director General of Customs, in the case falling under any of the following items, may elect not to give the permission referred to in paragraph (1) of the preceding Article:

(i)if a person who seeks the permission referred to in paragraph (1) of the preceding Article (hereinafter referred to as “applicant” in this Article) has had the permission of a customs area revoked and a period of three years has not elapsed from the day on which the permission was revoked;

(ii)if an applicant was sentenced to a penalty in violation of the provisions of this Act or was subject to a disposition of administrative notification, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed or on which the matters indicated in the notification were performed;

(iii)if an applicant was sentenced to imprisonment without work or heavier punishment in violation of the provisions of the laws and regulations other than this Act, and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(iv)if an applicant was sentenced to a fine in violation of the provisions of the Act on Prevention of Unjust Acts by Organized Crime Group Members or for having committed the offense of Article 204 (Injury), Article 206 (Incitement of injury), Article 208 (Assault), paragraph (1) of Article 208-2 (Unlawful assembly with weapons), Article 222 (Intimidation) or Article 247 (Breach of trust) of the Penal Code or the offense of the Act on Punishment of Physical Violence and Other Acts, and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(v)if an applicant is a member of an organized crime group, etc.;

(vi)if an applicant is a juridical person whose officer falls under any of the preceding items or if an applicant employs any person who falls under any of the preceding items as an agent, manager or other principal employee;

(vii)if business activities of an applicant are controlled by a member of an organized crime group, etc.;

(viii)if the financial resources of an applicant are found to be insufficient to bear the burden imposed under this Act or otherwise if an applicant does not have sufficient ability to conduct customs warehousing business;

(ix)if the location of, or the facilities installed in the place for which the permission referred to in paragraph (1) of the preceding Article is sought are found unsuitable for a customs warehouse;

(x)if it is found that there is little prospect for the place for which the permission referred to in paragraph (1) of the preceding Article is sought to be used as a customs warehouse or that there is little value in that place to be used as a customs warehouse.

(Period for which foreign goods may be stored)

Article 43-2.The period for which foreign goods may be stored in a customs warehouse is two years from the day on which approval for storage of such goods in the customs warehouse is initially given.

(2)If the Director General of Customs finds that there are special circumstances, the period referred to in the preceding paragraph may, upon application, be extended, specifying the additional period deemed to be necessary.

(Approval for storage of foreign goods)

Article 43-3.If a person who brings foreign goods into a customs warehouse seeks to store these goods in that warehouse for a period exceeding three months from the day on which they are brought into the warehouse (or, if it is found necessary for any unavoidable circumstances, for a period as designated by the Director General of Customs upon application), the person shall, pursuant to the provisions of Cabinet Order, obtain approval of the Director General of Customs by filing an application with the Director General of Customs before the day on which the period expires.

(2)The approval referred to in the preceding paragraph shall be given unless foreign goods may not be stored in a customs warehouse for a period exceeding the period referred to in that paragraph pursuant to the provisions of other laws and regulations or unless proper use of a customs warehouse is hindered.

(3)Article 67-2 (Procedure for export or import declaration), the first sentence of paragraph (1) of Article 67-3 (Special provisions for export declaration) and Article 67-19 (Special provisions for import declaration) apply mutatis mutandis when application for approval referred to in paragraph (1) is made.

(Inspection at the time of approval, etc. for storage of foreign goods)

Article 43-4.When the Director General of Customs gives the approval or designates the period, as referred to in paragraph (1) of the preceding Article, the Director General of Customs shall have customs officials conduct necessary inspection of foreign goods referred to in that paragraph.

(2)Article 68-2 (Delegation of authority for inspection of goods) applies mutatis mutandis to the inspection referred to in the preceding paragraph.

(Increase, decrease, etc. in storage capacity of goods)

Article 44.If a person who has obtained permission of a customs warehouse seeks to increase or decrease its storage capacity or to perform its rebuilding, relocation or other construction work, the person shall notify this to the customs in advance.

(2)When the notification referred to in the preceding paragraph has been made, if it is found that the increase or decrease in storage capacity or the construction work that a person seeks to implement would cause difficulty in ensuring the implementation of this Act on the grounds that, after completion of the increase, decrease or the work, there would be no clear demarcation between the customs warehouse and other places or the storage facilities of foreign goods would be insufficient after the completion, the Director General of Customs may request the person who has made the notification to take necessary measures at the time of implementing the matters covered by the notification.

(Liability for payment of customs duty, etc. of a person who has obtained permission)

Article 45.When any foreign goods stored in a customs warehouse (other than goods the exportation of which has been permitted; hereinafter the same applies in this paragraph and the next paragraph) were lost or destroyed, customs duty chargeable thereon shall immediately be collected from a person who has obtained permission of the customs warehouse; provided, however, that this does not apply if foreign goods were lost due to a disaster or other unavoidable circumstances or were destroyed with prior approval of the Director General of Customs.

(2)If the Director General of Customs finds that destruction of foreign goods stored in a customs warehouse is unavoidable on the grounds that they are likely to be spoiled, deteriorate or cause damage to other foreign goods, the Director General of Customs shall give the approval referred to in the proviso to the preceding paragraph.

(3)When foreign goods stored in a customs warehouse were lost, a person who has obtained permission of the customs warehouse shall immediately notify this to the Director General of Customs.

(Notification of suspension or discontinuance of business)

Article 46.If a person who has obtained permission of a customs warehouse seeks to suspend or discontinue customs warehousing business before expiry of the period of permission, the person shall notify this to the Director General of Customs in advance.

(Invalidation of permission)

Article 47.Permission of a customs warehouse ceases to be effective if any of the situations as set forth in the following items occurs:

(i)when a person who has obtained permission discontinues customs warehousing business;

(ii)when, after a person who has obtained permission has died, application prescribed in paragraph (2) of Article 48-2 (Succession of permission) is not made within the period provided for in that paragraph or a disposition not to give the approval referred to in that paragraph is made;

(iii)when a person who has obtained permission is dissolved;

(iv)when a person who has obtained permission receives a ruling for commencement of bankruptcy proceedings;

(v)when the period of permission expires;

(vi)when the Director General of Customs revokes permission.

(2)If permission of a customs warehouse ceases to be effective, the Director General of Customs shall immediately give a public notice thereof.

(3)When permission of a customs warehouse ceases to be effective, if any foreign goods are stored in that warehouse at the time of its invalidation, the place for which permission has ceased to be effective is deemed to be a customs warehouse for the goods for a period designated by the Director General of Customs. In this case, a person who has obtained the permission or the heir (if a person who has obtained permission is a juridical person that has ceased to exist as a result of merger, then the juridical person that survives the merger or the juridical person that is established as a result of the merger; if a person who has obtained permission is a juridical person that has been split up (only when the customs warehousing business is taken over), then the juridical person that has taken over the business; if a person who has obtained permission has transferred the business, then a person who has been transferred the business) may not be exempted from the obligation associated with the customs warehouse until all of the foreign goods are removed therefrom.

(Revocation of permission, etc.)

Article 48.The Director General of Customs, if any of the situations as set forth in the following items occurs, may have bringing foreign goods or goods that a person seeks to export into a customs warehouse suspended for a specified period or may revoke permission of a customs warehouse:

(i)if a person who has obtained permission (in the case of a juridical person, including its officer) or the agent, manager, or other employee violates the provisions of this Act in connection with customs warehousing business;

(ii)if a person who has obtained permission falls under any of items (ii) to (x) of Article 43 (Requirements for permission).

(2)The Director General of Customs, before making the disposition referred to in the preceding paragraph, shall give notice of the disposition to a person who has obtained permission of a customs warehouse subject to the disposition and shall request attendance of that person or the agent for hearing opinions or otherwise provide them with an opportunity to produce evidence for explanation.

(Succession of permission)

Article 48-2.If a succession occurs with respect to a person who has obtained permission of a customs warehouse, the heir (when there are two or more heirs, if one of them, with the consent of all of the heirs, is selected as an heir to take over the position based on that permission, then the heir so selected) takes over the position based on the permission of the decedent.

(2)A person who has taken over the position based on the permission of a customs warehouse pursuant to the provisions of the preceding paragraph (referred to as “successor” in the next paragraph) may, pursuant to the provisions of Cabinet Order, file an application for approval of succession with the Director General of Customs within sixty days after the death of the decedent.

(3)If a successor falls under any of the items of Article 43 (Requirements for permission), the Director General of Customs may elect not to give the approval referred to in the preceding paragraph.

(4)When a person who has obtained permission of a customs warehouse has been merged or has been split up (only when the customs warehousing business is to be taken over) or when a person who has obtained permission of a customs warehouse has transferred customs warehousing business, if the person has in advance been given approval of the Director General of Customs pursuant to the provisions of Cabinet Order, a juridical person that survives the merger or is established as a result of the merger, a juridical person that has taken over the business as a result of the split-up or a person who has been transferred the business (referred to as “juridical person after merger, etc.” in the next paragraph), notwithstanding the provisions of item (i) or (iii) of paragraph (1) of Article 47 (Invalidation of permission), may take over the position based on the permission of the juridical person that has ceased to exist as a result of the merger or has been split up, or based on the permission of the person who has transferred the business.

(5)If a juridical person after merger, etc. falls under any of the items of Article 43, the Director General of Customs may elect not to give the approval referred to in the preceding paragraph.

(6)When the approval referred to in paragraph (2) or (4) has been given, the Director General of Customs shall immediately give a public notice thereof.

(Mutatis mutandis application of provisions on designated customs areas)

Article 49.Article 40 (Handling of goods in a designated customs area) applies mutatis mutandis to a customs warehouse.

(Special provisions for permission of a customs warehouse)

Article 50.If a person who has obtained the permission referred to in paragraph (1) of Article 42 (Permission of a customs warehouse) and has obtained in advance approval of the Director General of Customs (hereinafter referred to as “holder of approval” in this Section) seeks to perform the acts provided for in that paragraph (hereinafter referred to as “storage, etc. of foreign goods”) at a place that meets, with respect to its location or facilities, the criteria prescribed by the Ministry of Finance Order, the person may notify this to the Director General of Customs having jurisdiction over that place.

(2)For the purpose of application of the provisions of this Act, the place under the notification referred to in the preceding paragraph is deemed to be a place that has been given the permission referred to in paragraph (1) of Article 42 at the time when the notification is accepted. In this case, the period of permission for the place deemed to have been given permission, notwithstanding the provisions of paragraph (2) of that Article, is the same as the period during which the approval referred to in the preceding paragraph is effective.

(3)A person who seeks the approval referred to in paragraph (1) shall file a written application, stating the person’s domicile or residence, name and other necessary matters with the Director General of Customs having jurisdiction over the location of the domicile or residence.

(4)The approval referred to in paragraph (1) ceases to be effective after expiry of its period unless renewal is approved every eight years.

(5)Necessary matters concerning procedures for the notification referred to in paragraph (1) and other necessary matters concerning application of the preceding paragraphs are prescribed by Cabinet Order.

(Requirements for approval)

Article 51.The Director General of Customs, before giving the approval referred to in paragraph (1) of the preceding Article, shall examine whether the criteria set forth in the following are met:

(i)that a person who seeks the approval does not fall under any of the following items:

(a)that a period of three years has not elapsed from the day on which the approval referred to in paragraph (1) of the preceding Article was revoked pursuant to the provisions of paragraph (1) of Article 54 (Revocation of approval, etc.);

(b)that, with respect to the permission already given under paragraph (1) of Article 42 (Permission of a customs warehouse), a period of three years has not elapsed from the day of the permission (if permission has been given two or more times, the day on which the first permission was given);

(c)that the person falls under the cases set forth in items (ii) to (vii) of Article 43 (Requirements for permission);

(ii)that a person who seeks the approval has the ability to conduct business relating to storage, etc. of foreign goods by means of electronic data processing system or otherwise to properly and surely conduct the business;

(iii)that a person who seeks the approval has established, with respect to business relating to storage, etc. of foreign goods, a rule covering the matters prescribed by the Ministry of Finance Order as those for ensuring that the person (in the case of a juridical person, including its officers) or the agent, manager or other employee complies with the provisions of this Act or other laws and regulations.

(Improvement measures relating to a rule, etc.)

Article 52.If the Director General of Customs finds it necessary in order to ensure the implementation of this Act for the reason that a holder of approval fails to conduct business relating to storage, etc. of foreign goods in accordance with the provisions of this Act or on other grounds, the Director General of Customs may request the holder of approval to take necessary measures for improving the rule provided for in item (iii) of the preceding Article or the performance of business activities in connection with the matters specified by that rule or to newly establish a rule provided for in that item.

(Notification of discontinuance of application of special provisions for permission of a customs warehouse)

Article 52-2.A holder of approval, if application of paragraph (1) of Article 50 (Special provisions for permission of a customs warehouse) is no longer necessary, may notify, pursuant to the provisions of Cabinet Order, the Director General of Customs who has given the approval referred to in that paragraph thereof.

(Invalidation of approval)

Article 53.The approval referred to in paragraph (1) of Article 50 (Special provisions for permission of a customs warehouse) ceases to be effective if any of the situations as set forth in the following items occurs:

(i)when notification prescribed in the preceding Article is submitted;

(ii)when the permission referred to in paragraph (1) of Article 42 (Permission of a customs warehouse) ceases to be effective with respect to a customs warehouse of a holder of approval as a whole;

(iii)when, after a holder of approval has died, application prescribed in paragraph (2) of Article 48-2 (Succession of permission), as applied mutatis mutandis pursuant to Article 55 is not made within the period provided for in that paragraph or when disposition not to give the approval referred to in that paragraph is made;

(iv)when the period of approval expires;

(v)when the Director General of Customs revokes the approval.

(Revocation of approval, etc.)

Article 54.The Director General of Customs, if a holder of approval falls under any of the following items, may revoke the approval referred to in paragraph (1) of Article 50 (Special provisions for permission of a customs warehouse):

(i)when the holder falls under item (i)(c) of Article 51 (Requirements for approval) or when the holder ceases to meet the requirements of item (ii) of that Article;

(ii)when the holder fails to respond to the request made by the Director General of Customs under Article 52 (Improvement measures relating to a rule, etc.).

(2)The Director General of Customs, before revoking approval pursuant to the provisions of the preceding paragraph, shall give a notice thereof to a holder of approval subject to the disposition in advance and shall request attendance of the holder or the agent for hearing their opinions or otherwise provide them with an opportunity to produce evidence for explanation.

(3)Necessary matters concerning the procedures for revocation of approval as prescribed in paragraph (1) or other necessary matters concerning application of the preceding two paragraphs are prescribed by Cabinet Order.

(Mutatis mutandis application of provisions on succession of permission)

Article 55.Paragraphs (1) to (5) of Article 48-2 (Succession of permission) apply mutatis mutandis to a holder of approval. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

Section 4 Customs Factories

(Permission of a customs factory)

Article 56.A customs factory means a factory that, pursuant to the provisions of Cabinet Order, is permitted by the Director General of Customs as a place where processing of foreign goods, manufacturing using foreign goods as raw materials (including blending) or repacking, sorting or other normal handling operations of foreign goods may be conducted (hereinafter referred to as “operations under customs procedures”).

(2)A person who has obtained permission of a customs factory is deemed to have also been given for that factory the permission referred to in paragraph (1) of Article 42 (Permission of a customs warehouse) for imported goods used in that factory, but only for a period of up to three months from the day on which the imported goods are brought into the factory.

(3)A person who has obtained permission of a customs factory may also be given the permission referred to in paragraph (1) of Article 42 for a part of the site of the customs factory.

(Period for which foreign goods may be stored)

Article 57.The period for which foreign goods used for the operations under customs procedures (including products obtained through these operations using the foreign goods) may be stored in a customs factory is for a period of up to two years from the day on which the approval for storage of the foreign goods in that factory for these operations or the approval for use of the foreign goods for these operations in that factory is given.

(Notification of operations under customs procedures)

Article 58.A person who seeks to conduct operations under customs procedures in a customs factory shall notify the commencement and completion of these operations to the customs at the time of their commencement and completion; provided, however, that this does not apply to the commencement of the operations if the Director General of Customs finds that there will be no trouble in customs control and hence notifies to that effect.

(Special provisions for declaration for duty payment, etc. for products manufactured through operations under customs procedures)

Article 58-2.A person who has obtained permission of a customs factory where operations for oil refinery or other operations prescribed by Cabinet Order as the operations in which two or more kinds of products are manufactured in a single manufacturing process are conducted under customs procedures shall, when the operations are completed, notwithstanding the provisions of paragraph (1) of Article 7 (Declaration) and Article 67 (Export or import permission), file a declaration for duty payment with the Director General of Customs without delay after completion of the operations and obtain import permission prescribed in that Article with respect to the foreign goods manufactured through the operations, other than foreign goods to be reshipped to any foreign country and other goods specified by Cabinet Order as those to be manufactured through the operations (hereinafter referred to as “manufactured foreign goods” in this Article). In this case, if the person is an authorized importer or a special entrusting importer, that person is not precluded from filing a special declaration with respect to the manufactured foreign goods (excluding goods provided for in paragraph (4) of Article 7-2 (Special provisions for declaration)).

(Use of domestic goods, etc.)

Article 59.When foreign goods and domestic goods are used for operations under customs procedures (except repacking, sorting or other normal handling operations) in a customs factory, products manufactured therefrom are deemed to be foreign goods that have arrived in Japan from abroad.

(2)When foreign goods are used in combination with domestic goods with the approval of the Director General of Customs pursuant to the provisions of Cabinet Order, products manufactured therefrom, corresponding to the quantity of the foreign goods used are, notwithstanding the provisions of the preceding paragraph, deemed to be foreign goods that have arrived in Japan from abroad.

Article 60.Deleted.

(Operations under customs procedures performed outside a customs factory)

Article 61.If the Director General of Customs finds that it will contribute to the promotion of trade and does not cause any difficulty in ensuring the implementation of this Act, the Director General of Customs may, pursuant to the provisions of Cabinet Order, designate a period and place and give permission for removing foreign goods stored in a customs factory from that factory to the place so designated in order to conduct the operations under customs procedures for these goods.

(2)When the Director General of Customs gives the permission referred to in the preceding paragraph, the Director General of Customs may, if it is found necessary to do so, require security to be provided in an amount equivalent to that of customs duty chargeable on foreign goods subject to the permission.

(3)When foreign goods are removed from a customs factory with the permission referred to in paragraph (1), the Director General of Customs shall have customs officials conduct necessary inspection of the foreign goods at the time of their removal.

(4)Foreign goods that, with the permission referred to in paragraph (1), have been removed to a place designated pursuant to the provisions of that paragraph are deemed to be stored in the customs factory from which they were removed until the period designated under that paragraph expires.

(5)When the period designated pursuant to the provisions of paragraph (1) has expired, if foreign goods for which permission has been given under that paragraph or products manufactured therefrom are stored in the designated place, customs duty chargeable thereon is immediately collected from a person who has obtained the permission of the customs factory from which the foreign goods were removed.

(Simplified procedures for a designated customs factory)

Article 61-2.Notwithstanding the provisions of Article 58 (Notification of operations under customs procedures), the notification required to be made at the time of commencement and completion of the operations under customs procedures for manufacturing the products is not required for a customs factory that is found by the Director General of Customs to be a factory that does not cause any difficulty in customs control in consideration of the stable state in the production yield of raw materials used, the nature of the operations under customs procedures or other circumstances and hence is designated by the Director General of Customs by specifying products to be manufactured under the operations and foreign goods to be used as raw materials.

(2)A person who has obtained the designation referred to in the preceding paragraph shall, pursuant to the provisions of Cabinet Order, submit to the customs a written report, stating the quantities of raw materials that are foreign goods, used each month, the quantities of products manufactured therefrom each month, as specified by the Director General of Customs under the preceding paragraph (or, if the Director General of Customs specifies a period longer than one month for such cases as seasonal operations under customs procedures, etc., then within the longer period so specified) and other matters prescribed by Cabinet Order, on or before the tenth day of the month following the month in which they are used or manufactured (if a special period is designated by the Director General of Customs, the day on which ten days elapse from the day on which the special period expires) (if the operations for these products is suspended, it shall be submitted after the suspension, without delay).

(Obligation of record keeping)

Article 61-3.A person who has obtained permission of a customs factory shall keep books for foreign goods stored therein and state in the books matters prescribed by Cabinet Order.

(Mutatis mutandis application of provisions on customs warehouses)

Article 61-4.The provisions of paragraphs (2) and (3) of Article 42 (Permission of a customs warehouse), Article 43 (Requirements for permission), paragraph (2) of Article 43-2 (Period for which foreign goods may be stored) and Articles 43-3 to 48-2 (Approval for storage of foreign goods; Inspection at the time of approval, etc. for storage of foreign goods; Increase, decrease, etc. in storage capacity of goods; Liability for payment of customs duty, etc. of a person who has obtained permission; Notification of suspension or discontinuance of business; Invalidation of permission; Revocation of permission, etc.; Succession of permission) apply mutatis mutandis to customs factories. In this case, the terms “in that warehouse for a period”, “into the warehouse (or, if it is found necessary for any unavoidable circumstances, for a period as designated by the Director General of Customs upon application)” and “the period expires” in paragraph (1) of Article 43-3 are deemed to be replaced with “in that warehouse for operations under customs procedures for a period”, “into the warehouse or seeks to use these goods for operations under customs procedures within three months from the day on which these goods are brought into the customs factory” and “the period expires or before the day on which these goods are used for operations under customs procedures” respectively, and the term “into a customs warehouse” in paragraph (1) of Article 48 is deemed to be replaced with “into a customs factory or conducting operations under customs procedures at a customs factory”.

(Special provisions for permission of a customs factory)

Article 61-5.A person who has obtained the permission referred to in paragraph (1) of Article 56 (Permission of a customs factory) and has in advance been given approval of the Director General of Customs, if the person seeks to conduct the operations under customs procedures at a place that meets, with respect to the location and facilities, the criteria prescribed by the Ministry of Finance Order, may notify that fact to the Director General of Customs having jurisdiction over the place.

(2)For the purpose of application of provisions of this Act and the Customs Tariff Act, the place notified under the preceding paragraph is deemed to be given the permission referred to in paragraph (1) of Article 56 at the time when the notification is accepted. In this case, the period of the permission of the place deemed to be given the permission, notwithstanding the provisions of paragraph (2) of Article 42 (Permission of a customs warehouse), as applied mutatis mutandis pursuant to the preceding Article, is the same period as the period during which the approval referred to in the preceding paragraph is effective.

(3)A person who seeks the approval referred to in paragraph (1) shall file a written application, stating the domicile or residence, name and other necessary matters, with the Director General of Customs having jurisdiction over the location of the domicile or residence.

(4)The approval referred to in paragraph (1) ceases to be effective after expiry of its effective period unless the approval is renewed every eight years.

(Mutatis mutandis application of provisions on special provisions for permission of a customs warehouse)

Article 62.Articles 51 to 55 (Requirements for approval; Improvement measures relating to a rule, etc.; Notification of discontinuance of application of special provisions for a customs warehouse; Invalidation of approval; Revocation of approval, etc.; Mutatis mutandis application of provisions on succession of permission) apply mutatis mutandis to the approval prescribed in paragraph (1) of the preceding Article. In this case, the term “Article 42 (Permission of a customs warehouse)” in item (i)(b) of Article 51 is deemed to be replaced with “Article 56 (Permission of a customs factory)”, the term “storage, etc. of foreign goods” in items (ii) and (iii) of Article 51 and in Article 52 is deemed to be replaced with “operations under customs procedures” and the term “with respect to a customs warehouse” in item (ii) of Article 53 is deemed to be replaced with “with respect to a customs factory”, and necessary technical replacement of terms is prescribed by Cabinet Order.

Section 5 Customs Exhibition Sites

(Permission of a customs exhibition site)

Article 62-2.A customs exhibition site means an area permitted, pursuant to the provisions of Cabinet Order, by the Director General of Customs to be used as a place for displaying foreign goods at such exhibition, fair or other similar events as specified by Cabinet Order (hereinafter referred to as “exhibition, etc.”).

(2)The period of permission referred to in the preceding paragraph is the period that the Director General of Customs finds to be necessary in consideration of the duration of exhibition, etc.

(3)For the purpose of construction, maintenance or removal of facilities for exhibition, etc. or for the purpose of administration of exhibition, etc., the acts set forth in the following items and prescribed by Cabinet Order may be performed in a customs exhibition site for the foreign goods to be specified by Cabinet Order:

(i)loading, unloading, transport or storage;

(ii)inspection of contents, repacking, sorting or other normal handling operations;

(iii)display or use;

(iv)acts similar to those set forth in the preceding three items.

(Procedures for bringing foreign goods into a customs exhibition site)

Article 62-3.A person who brings foreign goods into a customs exhibition site shall, pursuant to the provisions of Cabinet Order, file a declaration with the Director General of Customs and obtain approval for performing the acts referred to in paragraph (3) of the preceding Article.

(2)When the Director General of Customs gives the approval referred to in the preceding paragraph, the Director General of Customs shall have customs officials conduct necessary inspection of foreign goods referred to in that paragraph.

(3)When the declaration referred to in paragraph (1) has been filed, if the foreign goods so declared do not fall under those set forth in paragraph (3) of the preceding Article, the Director General of Customs does not give the approval referred to in paragraph (1). In this case, the Director General of Customs notifies a person who has filed the declaration of that disapproval and requests that person to remove the foreign goods from the customs exhibition site or to take other measures within a specified period.

(4)In a customs exhibition site, the acts set forth in item (i) or (ii) of paragraph (3) of the preceding Article (limited to those prescribed by Cabinet Order, as provided for in that paragraph) may be performed on foreign goods brought into that area until the approval referred to in paragraph (1) is given (or, with respect to goods subject to the notification referred to in the preceding paragraph, until the period specified in that paragraph elapses).

(Restriction, etc. on places for storage of goods for sale, etc.)

Article 62-4.The Director General of Customs, if it is found necessary in order to ensure the implementation of this Act with respect to foreign goods that have been brought into a customs exhibition site and are or are likely to be sold, used or consumed, may restrict, pursuant to the provisions of Cabinet Order, the place where these goods may be stored within the customs exhibition site or may request reporting on the details of use of foreign goods that have been brought into the customs exhibition site and are to undergo any changes in their nature or shape.

(2)If foreign goods brought into a customs exhibition site are sold within that area (excluding the cases prescribed by Cabinet Order), the sale is deemed to be importation for the purpose of application of this Act. In this case, the Director General of Customs, if it is found necessary to do so, may require security to be provided in advance within the amount equivalent to that of customs duty chargeable on the goods that are likely to be sold.

(Permission for use outside a customs exhibition site)

Article 62-5.With respect to foreign goods that have been brought into a customs exhibition site, but that need to be used outside the customs exhibition site (excluding goods falling under Article 32 (Temporary taking out of samples)), the Director General of Customs may, if it is found that no difficulty will occur in ensuring the implementation of this Act, permit, pursuant to the provisions of Cabinet Order, use of these foreign goods outside the customs exhibition site, designating the period and place for the use.

(Collection of customs duty on foreign goods that remain in a customs exhibition site after expiry of period of permission)

Article 62-6.With respect to foreign goods brought into a customs exhibition site and remained in that site at the time when the period of permission of that area expires or at the time when the permission ceases to be effective, the Director General of Customs may request a person who has obtained permission of the site to remove these foreign goods or to take other measures within a specified period, and if the person fails to take any of these measures within the specified period, the Director General of Customs shall immediately collect customs duty chargeable from that person.

(2)If the Director General of Customs finds that import of the foreign goods referred to in the preceding paragraph is not permitted under other laws and regulations or that there are other unavoidable circumstances, the provisions concerning collection of customs duty referred to in the preceding paragraph do not apply while these circumstances last.

(Mutatis mutandis application of provisions on a customs warehouse and customs factory)

Article 62-7.Paragraph (3) of Article 42 (Permission of a customs warehouse), Article 43 (Requirements for permission), paragraph (3) of Article 43-3 (Approval for storage of foreign goods), paragraph (2) of Article 43-4 (Inspection at the time of approval, etc. for storage of foreign goods), Articles 44 to 48-2 (Increase, decrease, etc. in storage capacity of goods; Liability for payment of customs duty of a person who obtains permission; Notification of suspension or discontinuance of business; Invalidation of permission; Revocation of permission, etc.; Succession of permission), paragraph (1) of Article 59 (Use of domestic goods, etc.), paragraphs (3) to (5) of Article 61 (Operations under customs procedures performed outside a customs factory) and Article 61-3 (Obligation of record keeping) apply mutatis mutandis to a customs exhibition site. In this case, the terms “Article 67-2” and “in paragraph (1)” in paragraph (3) of Article 43-3 are deemed to be replaced with “paragraph (1) of Article 67-2” and “in paragraph (1) of Article 62-3 (Procedures for bringing foreign goods into a customs exhibition site)”, respectively, and the term “the preceding paragraph” in paragraph (2) of Article 43-4 is deemed to be replaced with “paragraph (2) of Article 62-3 (Procedures for bringing foreign goods into a customs exhibition site)”.

Section 6 Integrated Customs Areas

(Permission of an integrated customs area)

Article 62-8.An integrated customs area means a unit of land, buildings and other facilities located on that land (referred to as “unit of land, etc.” in the next paragraph), that are permitted, pursuant to the provisions of Cabinet Order, by the Director General of Customs as a place where acts set forth in the following may be performed:

(i)loading, unloading, transportation, storage, inspection of contents, repacking, sorting or other normal handling operations of foreign goods;

(ii)processing of foreign goods or manufacture (including blending) using foreign goods as raw materials;

(iii)display of foreign goods or use associated therewith (limited to acts prescribed by Cabinet Order).

(2)The Director General of Customs, before giving the permission referred to in the preceding paragraph, shall examine whether the criteria set forth in the following are met:

(i)that the unit of land, etc. is owned or administered by a juridical person that meets the requirements prescribed by Cabinet Order, taking into account the details of its business or other matters;

(ii)that the trade-related facilities established in the unit of land, etc. are highly integrated;

(iii)that the acts set forth in the items of the preceding paragraph are anticipated to be performed in the unit of land, etc. in an integrated manner and that it is considered that these acts will substantially contribute to facilitating imports or promoting trade;

(iv)that it is found, in light of the location, facilities and other circumstances of the unit of land, etc., that there is no difficulty in ensuring the implementation of this Act;

(v)that a juridical person that owns or administers the unit of land, etc. (including a person, other than the juridical person, who administers goods in the unit of land, etc. if any; the same applies in the next item) does not fall under any of the cases set forth in items (i) to (vii) of Article 43 (Requirements for permission);

(vi)that a juridical person that owns or administers the unit of land, etc. is found to have sufficient ability to conduct the business of an integrated customs area in consideration of the financial resources and other circumstances of that juridical person.

(Period for which foreign goods may be stored)

Article 62-9.Foreign goods may be stored in an integrated customs area for two years from the day on which approval is given for storing these goods in that area or for performing in that area the acts set forth in item (ii) or (iii) of paragraph (1) of Article 62-8 (Permission of an integrated customs area) on these goods.

(Approval for storage, etc. of foreign goods)

Article 62-10.If a person who brings foreign goods into an integrated customs area seeks to store these goods in that area for a period exceeding three months from the day on which they are brought into that area or seeks to perform the acts set forth in item (ii) or (iii) of paragraph (1) of Article 62-8 (Permission of an integrated customs area) on these goods in that area within three months from the day on which they are brought into that area, the person shall, pursuant to the provisions of Cabinet Order, obtain approval of the Director General of Customs by filing an application with the Director General of Customs prior to the day on which the period expires or on which the acts are performed.

(Notification of bringing goods for sale, etc.)

Article 62-11.A person who seeks to bring into an integrated customs area foreign goods to be sold or consumed in that area or other similar goods prescribed by Cabinet Order shall notify the customs in advance.

Article 62-12.Deleted.

(Joint and several liability for payment of customs duty of an administrator of goods)

Article 62-13.When a juridical person that has obtained permission of an integrated customs area becomes liable to pay customs duty on foreign goods pursuant to the provisions of the main clause of paragraph (1) of Article 45 (Liability for payment of customs duty of a person who has obtained permission of a customs warehouse) or paragraph (5) of Article 61 (Liability for payment of customs duty of a person who has obtained permission of a customs factory), as applied mutatis mutandis pursuant to Article 62-15 (An integrated customs area), if the person who administers these goods in the integrated customs area at the time when they were lost or destroyed or at the time when they were brought out of the integrated customs area is a person other than the juridical person, the person who administers these goods and the juridical person are jointly and severally liable to pay that customs duty.

(Revocation of permission, etc.)

Article 62-14.If any of the situations as set forth in the following items occurs, the Director General of Customs may designate a person who administers goods and a period, and have the person suspend the acts of bringing foreign goods or goods that the person seeks to export into an integrated customs area or the acts of performing those acts as set forth in item (ii) or (iii) of paragraph (1) of Article 62-8 (Permission of an integrated customs area) in that area, or may revoke permission of the integrated customs area:

(i)if the juridical person that has obtained permission of an integrated customs area (including a person other than the juridical person, who administers goods in the integrated customs area, if any) or any officer, agent, manager or other employee, of the juridical person violates the provisions of this Act in connection with the business of the integrated customs area;

(ii)if any of the criteria set forth in the items of paragraph (2) of Article 62-8 (Criteria for permission of an integrated customs area) with respect to an integrated customs area ceases to be met.

(2)The Director General of Customs, before taking the disposition referred to in the preceding paragraph, shall give a notice thereof to a person who administers goods subject to the disposition or a juridical person that has obtained permission of the integrated customs area, and shall request attendance of that person or the agent for hearing the opinions or otherwise provide that person or agent with an opportunity to produce evidence for explanation.

(Mutatis mutandis application of provisions on a customs warehouse, customs factory and customs exhibition site)

Article 62-15.The following provisions apply mutatis mutandis to an integrated customs area: paragraphs (2) and (3) of Article 42 (Permission of a customs warehouse), paragraph (2) of Article 43-2 (Period for which foreign goods may be stored), paragraphs (2) and (3) of Article 43-3 (Approval for storage of foreign goods), Articles 43-4 to 47 (Inspection at the time of approval, etc. for storage of foreign goods; Increase, decrease, etc. in storage capacity of goods; Liability for payment of customs duty of a person who has obtained permission; Notification of suspension or discontinuance of business; Invalidation of permission), paragraphs (4) to (6) of Article 48-2 (Succession of permission), Article 58-2 (Special provisions for declaration for duty payment, etc. for products manufactured through operations under customs procedures), Article 59 (Use of domestic goods, etc.), Article 61 (Operations under customs procedures performed outside a customs factory), paragraph (2) of Article 61-2 (Simplified procedures for a designated customs factory), Article 62-4 (Restriction, etc. on places for storage of goods for sale, etc.) and Article 62-5 (Permission for use outside a customs exhibition site). In this case, in paragraph (2) of Article 42, the term “the preceding paragraph” is deemed to be replaced with “paragraph (1) of Article 62-8 (Permission of an integrated customs area)”; in paragraph (3) of the same Article, the terms “paragraph (1)” and “the proviso to the preceding paragraph” are deemed to be replaced with “paragraph (1) of Article 62-8” and “the proviso to the preceding paragraph, as applied mutatis mutandis pursuant to Article 62-15 (Mutatis mutandis application of provisions on a customs warehouse, customs factory and customs exhibition site)”, respectively; in paragraph (2) of Article 43-2, the term “the preceding paragraph” is deemed to be replaced with “Article 62-9 (Period for which foreign goods may be stored”; in paragraph (2) of Article 43-3, the terms “the preceding paragraph” and “that paragraph” are deemed to be replaced with “Article 62-10 (Approval for storage, etc. of foreign goods)” and “that Article”, respectively; in paragraph (3) of the same Article, the term “in paragraph (1)” is deemed to be replaced with “in Article 62-10”; in paragraph (1) of Article 43-4, the terms “paragraph (1) of the preceding Article” and “that paragraph” are deemed to be replaced with “Article 62-10 (Approval for storage, etc. of foreign goods” and “that Article”, respectively; in paragraph (1) of Article 47, the term “the following items” is deemed to be replaced with “item (i) or items (iii) to (vi)”; in paragraph (3) of the same Article, the term “person who has obtained the permission” is deemed to be replaced with “person who has obtained the permission (including any other person who administers goods in the integrated customs area, if any; hereinafter the same applies in this paragraph)”; in paragraph (4) of Article 48-2, the term “permission)” is deemed to be replaced with “permission), as applied mutatis mutandis pursuant to Article 62-15 (Mutatis mutandis application of provisions on a customs warehouse, customs factory and customs exhibition site)”; in paragraph (5) of the same Article, the term “falls under any of the items of Article 43” is deemed to be replaced with “does not meet the criteria set forth in the items of paragraph (2) of Article 62-8 (Permission of an integrated customs area)”; in paragraph (6) of the same Article, the term “paragraph (2) or (4)” is deemed to be replaced with “paragraph (4)”; in Article 58-2, the term “A person who has obtained permission of a customs factory” is deemed to be replaced with “A person who conducts in an integrated customs area”; in paragraph (3) of Article 61, the term “paragraph (1)” is deemed to be replaced with “paragraph (1) or Article 62-5 (Permission for use outside a customs exhibition site), as applied mutatis mutandis pursuant to Article 62-15 (Mutatis mutandis application of provisions on a customs warehouse, customs factory and customs exhibition site)”; in paragraphs (4) and (5) of the same Article, the terms “paragraph (1)” and “that paragraph” are deemed to be replaced with “paragraph (1) or Article 62-5, as applied mutatis mutandis pursuant to Article 62-15” and “these provisions”, respectively; in paragraph (2) of Article 61-2, the terms “person who has obtained the designation referred to in the preceding paragraph” and “month, as specified by the Director General of Customs under the preceding paragraph” are deemed to be replaced with “person who conducts the operations under customs procedures in an integrated customs area (excluding repacking, sorting and other normal handling operations; hereinafter the same applies in this paragraph)” and “month” respectively; in paragraph (1) of Article 62-4, the term “site or may request a report on the details of use of the foreign goods that have been brought into the customs exhibition site and are to undergo any changes in their nature or shape” is deemed to be replaced with “site”.

Chapter 5 Transportation

(Customs transit)

Article 63.Foreign goods (excluding postal items, special export goods and other goods prescribed by Cabinet Order; hereinafter the same applies in this Chapter (excluding paragraph (1) of Article 63-9 and Article 65-3)) may be transported as such, subject to declaration to, and approval of the Director General of Customs, provided that they are transported between open ports, customs airports, customs areas, customs offices and those places designated by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Restriction on places for storage of foreign goods) (referred to as “specific section” in paragraph (1) of the next Article and paragraph (1) of Article 63-9). In this case, if the Director General of Customs finds that no difficulty occurs in customs control in consideration of transportation conditions or other circumstances, the Director General of Customs may give blanket approval for transportation of foreign goods to be shipped within the period to be designated by the Director General of Customs within the limit of period prescribed by Cabinet Order.

(2)The Director General of Customs, if it is found necessary at the time of giving the approval referred to in the preceding paragraph, may have customs officials inspect the goods referred to in the preceding paragraph or may require security to be provided in an amount equivalent to that of customs duty chargeable.

(3)When transporting goods under paragraph (1), a transportation manifest shall, pursuant to the provisions of Cabinet Order, be presented to the customs and shall have it confirmed by the customs; provided, however, that if blanket approval has been given pursuant to the provisions of the second sentence of that paragraph, blanket confirmation may be sought for the transportation manifest for foreign goods shipped within each of such periods as may be specified by the Director General of Customs who has given the approval by subdividing the period of approval pursuant to the provisions of Cabinet Order.

(4)When the Director General of Customs gives the approval referred to in paragraph (1), the Director General of Customs shall designate the transportation period deemed to be reasonable. In this case, the Director General of Customs, if it is found necessary to extend the period due to a disaster or on other unavoidable grounds that occur after the designation of the period, may extend the designated period.

(5)When foreign goods that have been approved pursuant to the provisions of paragraph (1) arrive at their destination, a person who has obtained the approval shall immediately present the transportation manifest that has been confirmed pursuant to the provisions of paragraph (3) to the customs located at the destination and have it confirmed by the customs; provided, however, that if blanket approval has been given pursuant to the provisions of the second sentence of paragraph (1), blanket confirmation may be sought for the transportation manifest for foreign goods that have arrived within each of the periods designated by the Director General of Customs who has given the approval on the basis of the periods designated under paragraph (3) and the preceding paragraph.

(6)A person who has obtained the approval under paragraph (1) shall, pursuant to the provisions of Cabinet Order, submit a transportation manifest that has been confirmed under the preceding paragraph to the Director General of Customs who has given the approval.

(Special provisions for customs transit)

Article 63-2.The approval prescribed in paragraph (1) of the preceding Article is not required for the transportation of foreign goods carried out, within a specific section prescribed by Cabinet Order, by an authorized customs broker or an international freight forwarder (i.e., a person who has obtained the approval referred to in paragraph (1) of Article 50 (Special provisions for permission of a customs warehouse) or paragraph (1) of Article 61-5 (Special provisions for permission of a customs factory) or other person who meets the requirements prescribed by Cabinet Order as a person engaged in the business involving the transportation or administration of international freight; the same applies in item (i)(b) of Article 63-4 and item (iii)(b) of paragraph (1) of Article 63-7) who has received approval of any of the Directors General of Customs in advance (hereinafter referred to as “carrier engaged in specific customs transit”) (hereinafter the transportation herein is referred to as “specific customs transit”).

(2)When carrying out specific customs transit, a transportation manifest shall be presented to and be confirmed by the customs.

(3)If foreign goods subject to specific customs transit arrive at their destination, a carrier engaged in specific customs transit shall present without delay the transportation manifest that has been confirmed under the preceding paragraph to the customs located at the destination and have it confirmed by the customs.

(4)A carrier engaged in specific customs transit shall submit the transportation manifest that has been confirmed under the preceding paragraph to the Director General of Customs having jurisdiction over the customs office that has made the confirmation under paragraph (2).

(5)Necessary matters concerning presentation of the transportation manifest referred to in paragraph (2) or other necessary matters concerning application of the preceding paragraphs are prescribed by Cabinet Order.

(Procedures for approval, etc.)

Article 63-3.A person who seeks the approval referred to in paragraph (1) of the preceding Article shall file with the Director General of Customs a written application stating the person’s domicile or residence, name and other necessary matters.

(2)When a written application prescribed in the preceding paragraph has been filed, if the Director General of Customs has given the approval referred to in paragraph (1) of the preceding Article, the Director General of Customs shall immediately give a public notice thereof.

(3)Necessary matters for filing of a written application referred to in paragraph (1) and other necessary matters concerning application of the preceding two paragraphs are prescribed by Cabinet Order.

(Requirements for approval)

Article 63-4.The Director General of Customs, before giving the approval referred to in paragraph (1) of Article 63-2 (Special provisions for customs transit), shall examine whether the following criteria are met:

(i)that a person who seeks the approval does not fall under any of the following items:

(a)that the person was sentenced to punishment or was subject to a disposition of administrative notification in violation of the provisions of this Act, the Customs Tariff Act, other laws concerning customs duty or orders based on these laws, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed or from the day on which the matters indicated in the notification were performed;

(b)that the person was sentenced to punishment in violation of the provisions of the laws provided for by Cabinet Order for the types of international freight forwarders prescribed by Cabinet Order or the provisions of orders based on these laws, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(c)that the person was sentenced to imprisonment without work or heavier punishment in violation of the laws and regulations other than those provided for in items (a) and (b), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(d)that the person was sentenced to a fine in violation of provisions of the Act on Prevention of Unjust Acts by Organized Crime Group Members or for having committed the offense of Article 204 (Injury), Article 206 (Incitement of injury), Article 208 (Assault), paragraph (1) of Article 208-2 (Unlawful assembly with weapons), Article 222 (Intimidation) or Article 247 (Breach of trust) of the Penal Code or the offense of the Act on Punishment of Physical Violence and Other Acts, and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(e)that the person is a member of an organized crime group, etc.;

(f)that the person is a juridical person whose officer falls under any of items (a) to (e) with respect to the business or the person uses that officer as an agent, an employee or other worker;

(g)that the business activities of the person are controlled by a member of organized crime group, etc.;

(h)that a period of three years has not elapsed from the day on which the approval referred to in paragraph (1) of Article 63-2 was revoked pursuant to the provisions of item (i)(b) or (ii) of paragraph (1) of Article 63-8 (Revocation of approval);

(ii)that a person who seeks the approval has the ability to perform business involved in the specific customs transit by means of electronic data processing system or otherwise to perform the business properly and surely;

(iii)that a person who seeks the approval has established, with respect to the business involved in the specific customs transit, a rule covering the matters prescribed by the Ministry of Finance Order as those for ensuring that the person (in the case of a juridical person, including its officers) or the agent, manager or other employee complies with the provisions of this Act or other laws and regulations.

(Improvement measures relating to a rule, etc.)

Article 63-5.If the Director General of Customs finds it necessary in order to ensure the implementation of this Act for the reason that a carrier engaged in specific customs transit fails to conduct the transit in accordance with the provisions of this Act or on other grounds, the Director General of Customs may request that carrier to take necessary measures for improving the rule provided for in item (iii) of the preceding Article or the performance of business activities in connection with the matters specified in that rule or to newly establish a rule provided for in that item.

(Notification of discontinuance of application of special provisions for customs transit)

Article 63-6.A carrier engaged in specific customs transit, if the application of paragraph (1) of Article 63-2 (Special provisions for customs transit) is no longer necessary, may, pursuant to the provisions of Cabinet Order, notify this to the Director General of Customs who has given the approval referred to in that paragraph.

(Invalidation of approval)

Article 63-7.The approval referred to in paragraph (1) of Article 63-2 (Special provisions for customs transit) ceases to be effective if any of the situations set forth in the following items occurs:

(i)when the notification prescribed in the preceding Article is submitted;

(ii)when, after a carrier engaged in specific customs transit has died, application prescribed in paragraph (2) of Article 48-2 (Succession of permission), as applied mutatis mutandis pursuant to Article 63-8-2 (Mutatis mutandis application of provisions on succession of permission) is not made within the period provided for in that paragraph or disposition not to give the approval referred to in that paragraph is made;

(iii)when a person set forth in the following falls under any of the cases as specified for the category of the person as set forth respectively therein:

(a)an authorized customs broker (excluding a person set forth in item (b)): when the authorization referred to in paragraph (1) of Article 79 (Authorization of customs brokers) ceases to be effective;

(b)(b) an international freight forwarder: when the requirements provided for in paragraph (1) of Article 63-2 cease to be met;

(iv)when the Director General of Customs revokes approval.

(2)When the approval referred to in paragraph (1) of Article 63-2 ceases to be effective, the Director General of Customs shall immediately make a public notice thereof.

(3)When the approval referred to in paragraph (1) of Article 63-2 has ceased to be effective, a person who has obtained the approval or the heir (or, when a juridical person that has been given the approval has ceased to exist as a result of merger, the juridical person that survives the merger or the juridical person that has been established as a result of the merger) may not be exempted from the obligation imposed under the provisions of this Act or other laws concerning customs duty with respect to foreign goods shipped before the approval ceased to be effective.

(Revocation of approval)

Article 63-8.If any of the situations set forth in the following items occurs, the Director General of Customs may revoke the approval referred to in paragraph (1) of Article 63-2 (Special provisions for customs transit):

(i)when a carrier engaged in specific customs transit falls under any of the following:

(a)when the carrier falls under any of items (i)(a) to (i)(g) of Article 63-4 (Requirements for approval) or does not meet the criteria referred to in item (ii) of that Article;

(b)when the carrier fails to respond to the request of the Director General of Customs prescribed in Article 63-5 (Improvement measures relating to a rule, etc.);

(ii)when, at the time of carrying out specific customs transit, the carrier fails to present a transportation manifest prescribed in paragraph (2) or (3) of Article 63-2, fails to have it confirmed under these paragraphs or fails to submit a transportation manifest prescribed in paragraph (4) of that Article.

(2)Necessary matters concerning procedures for revocation of approval prescribed in the preceding paragraph and any other necessary matters concerning application of the preceding paragraph are prescribed by Cabinet Order.

(Mutatis mutandis application of provisions on succession of permission)

Article 63-8-2.Article 48-2 (Succession of permission) applies mutatis mutandis to a carrier engaged in specific customs transit. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

(Customs transit of postal items)

Article 63-9.Postal items (excluding specific postal items) may, subject to notification to the Director General of Customs, be transported as foreign goods, provided that the transportation is carried out only within the specific section.

(2)When carrying out the transportation referred to in the preceding paragraph, a transportation manifest shall be presented to, and be confirmed by the customs.

(3)When a postal item subject to the notification prescribed in paragraph (1) arrives at its destination, a person who has made the notification shall present without delay the transportation manifest that has been confirmed under the preceding paragraph to the customs located at its destination and shall have it confirmed by the customs.

(4)A person who has made the notification prescribed in paragraph (1) shall submit the transportation manifest that has been confirmed under the preceding paragraph to the Director General of Customs to whom the notification was made.

(Transportation of wreckage, etc.)

Article 64.Notwithstanding the provisions of the first sentence of paragraph (1) of Article 63 (Customs transit), foreign goods set forth in the following may be transported as such from the place where they are stored to an open port, customs airport, customs area or customs office. In this case, a person who transports the goods shall obtain approval of the Director General of Customs (or, approval of a customs official at a place where no customs office is established); provided, however, that when there is urgent need to transport goods from the place where any customs office is not established, if no customs official is available, notification thereof shall be made to a police official in advance:

(i)wreckage;

(ii)goods loaded on board a disabled vessel or aircraft;

(iii)goods temporarily landed.

(2)Paragraph (4) of Article 63 applies mutatis mutandis to the approval referred to in the preceding paragraph.

(3)When foreign goods that have been approved or notified under paragraph (1) arrive at their destination, a person who has obtained the approval or has made the notification shall immediately submit a document that certifies the approval or notification to the customs located at their destination.

(Collection of customs duty due to expiry of transportation period)

Article 65.If foreign goods (excluding goods the exportation of which has been permitted; the same applies in the next paragraph) transported with approval of transportation pursuant to the provisions of paragraph (1) of Article 63 (Customs transit) or paragraph (1) of the preceding Article do not arrive at their destination within the specified period for transportation, customs duty chargeable thereon is immediately collected from a person who has obtained the approval of transportation; provided, however, that this does not apply if the goods were lost due to a disaster or other unavoidable circumstances or were destroyed with prior approval of the Director General of Customs.

(2)If foreign goods subject to specific customs transit do not arrive at their destination within seven days from the day following the date on which they were shipped, customs duty chargeable thereon is immediately collected from a carrier engaged in specific customs transit. In this case, the proviso to the preceding paragraph applies mutatis mutandis.

(3)Paragraph (2) of Article 45 (Liability for payment of customs duty, etc. of a person who has obtained permission) applies mutatis mutandis to the approval referred to in the proviso to paragraph (1) (including the cases where applied mutatis mutandis pursuant to the preceding paragraph).

(4)If foreign goods transported with approval of transportation pursuant to the provisions of paragraph (1) of Article 63 or paragraph (1) of the preceding Article or foreign goods subject to specific customs transit were lost before arriving at their destination, a person who has obtained the approval or a carrier engaged in specific customs transit shall immediately notify this fact to the Director General of Customs who has given that approval or the approval referred to in paragraph (1) of Article 63-2 (Special provisions for customs transit).

(Collection of customs duty on postal items not arriving at their destination)

Article 65-2.If postal items (excluding those to be exported) transported upon notification pursuant to the provisions of paragraph (1) of Article 63-9 (Customs transit of postal items) do not arrive at their destination within seven days from the day following the date on which they are shipped, customs duty chargeable thereon is immediately collected from a person who has made the notification prescribed in that paragraph; provided, however, that this does not apply if the postal items have been lost due to a disaster or other unavoidable circumstances or have been destroyed with advance approval of the Director General of Customs.

(2)Paragraph (2) of Article 45 (Liability for payment of customs duty of a person who has obtained permission, etc.) applies mutatis mutandis to the approval referred to in the proviso to the preceding paragraph.

(3)If postal items transported upon notification pursuant to the provisions of paragraph (1) of Article 63-9 were lost before arriving at their destination, a person who has filed a notification prescribed in that paragraph shall immediately notify this fact to the Director General of Customs with whom the notification prescribed in that paragraph was filed.

(Goods the transportation of which is not permitted under customs transit)

Article 65-3.Notwithstanding the provisions of paragraph (1) of Article 24 (Traffic, etc. between vessels or aircraft and land), paragraph (1) of Article 63 (Customs transit), paragraph (1) of Article 63-2 (Special provisions for customs transit), paragraph (1) of Article 63-9 (Customs transit of postal items) or paragraph (1) of Article 64 (Transportation of wreckage, etc.), goods set forth in items (i) to (iv), (v)-2, (vi) and (viii) to (x) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) (limited to those arrived in Japan for the purpose other than for importation; in the case of goods set forth in item (ix) of that paragraph, goods that infringe a layout-design exploitation right only are excluded) may not be transported (including loading and unloading; the same applies in paragraphs (1) and (2) of Article 109-2) as foreign goods.

(Transportation of domestic goods)

Article 66.A person who transports domestic goods on board a vessel, etc. engaged in foreign trade from one place to another in Japan shall obtain approval of the Director General of Customs by making a declaration for the transportation.

(2)When goods that have been approved under the preceding paragraph have arrived at their destination, a person who has obtained the approval shall immediately submit a document certifying that approval to the customs located at the destination.

Chapter 6 Clearance of Goods

Section 1 General Provisions

(Export or import permission)

Article 67.A person who seeks to export or import goods shall, pursuant to the provisions of Cabinet Order, declare to the Director General of Customs the descriptions, quantities and prices of these goods (with respect to import goods (excluding specially declared goods), their quantities and values that are to be taken as a basis for duty assessment) and other necessary matters, and shall obtain permission from the Director General of Customs after undergoing necessary inspection for the goods.

(Procedures for export or import declaration)

Article 67-2.An export or import declaration shall be made to the Director General of Customs having jurisdiction over the location of a customs area, etc. (i.e., a customs area, or a place designated by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Restriction on places for storage of foreign goods); hereinafter the same applies) where goods subject to the declaration have been brought for the purpose of obtaining export or import permission.

(2)Notwithstanding the provisions of the preceding paragraph, a person　who seeks to export or import goods that require to make an export or import declaration in the state in which they are loaded on board a vessel engaged in foreign trade (including a vessel specified by Cabinet Order as a vessel equivalent to a vessel engaged in foreign trade; hereinafter the same applies in this paragraph) may file, subject to approval given by the Director General of Customs pursuant to the provisions of Cabinet Order, an export or import declaration with the Director General of Customs having jurisdiction over the place where the vessel is moored.

(3)An import declaration shall be filed after goods subject to the declaration have been brought into a customs area, etc.; provided, however, that this does not apply if the situation falls under any of the following items:

(i)if the approval prescribed in the preceding paragraph has been given;

(ii)if approval has been given, pursuant to the provisions of Cabinet Order, by the Director General of Customs for making a declaration without bringing the goods into a customs area, etc.;

(iii)if an authorized importer or a special entrusting importer makes, pursuant to the provisions of Cabinet Order, an import declaration for the goods.

(4)In the case falling under any of the items of the preceding paragraph, an import declaration shall be made after matters concerning cargoes as prescribed in paragraph (1) or (9) of Article 15 (Procedures for entry into a port) are reported to the customs for the goods or after a document stating matters concerning cargoes as prescribed in paragraph (2) or (10) of that Article or paragraph (4) of Article 18 (Simplified procedures for entry into, or departure from a port) is submitted to the customs.

Section 2 Special Provisions for Export Declaration

(Special provisions for export declaration)

Article 67-3.Notwithstanding the provisions of paragraph (1) or (2) of the preceding Article, a person set forth in the following items may, pursuant to the provisions of Cabinet Order, file an export declaration (excluding an export declaration related to goods prescribed by Cabinet Order) with any of the Directors General of Customs. In this case, if the person set forth in item (ii) files an export declaration under specific entrustment (i.e., an export declaration made by that person for goods for which that person seeks to obtain export permission without bringing the goods into a customs area, etc.; the same applies in paragraph (4) and paragraph (3) of Article 79-4 (Invalidation of authorization)), the person shall entrust a carrier engaged in specific customs transit with transportation of goods subject to the declaration from the place where they are stored to an open port, customs airport or closed port where the person seeks to load these goods onto a vessel, etc. engaged in foreign trade:

(i)a person who seeks to export goods and has, in advance, been given approval of any of the Directors General of Customs (hereinafter referred to as “authorized exporter”);

(ii)a person who seeks to export goods and has entrusted an authorized customs broker (referred to as “specific entrusting exporter” in paragraph (1) of the next Article and Article 67-5) with customs clearance procedures related to exportation of the goods;

(iii)an exporter of specific manufactured goods (i.e., an exporter of such goods as provided for in paragraph (2) of Article 67-13 (Authorization of manufacturers); the same applies in the next paragraph, paragraph (1) of the next Article and Article 67-5) who acquires from an authorized manufacturer (i.e., an authorized manufacturer provided for in Article 67-14 (Improvement measures relating to a rule, etc.); hereinafter the same applies in this item and the next paragraph) goods manufactured by that authorized manufacturer and seeks to export these goods.

(2)An exporter of specific manufactured goods shall, at the time of export declaration for specific manufactured goods (i.e., export declaration made by an exporter of specific manufactured goods pursuant to the provisions of the preceding paragraph for goods for which an exporter seeks to obtain export permission without bringing the goods into a customs area, etc.; hereinafter the same applies in this Section), submit to the Director General of Customs a document prepared by an authorized manufacturer, stating the descriptions, quantities and other matters prescribed by Cabinet Order, of the goods subject to the export declaration for specific manufactured goods (referred to as “written confirmation of goods” in item (ii)(a) of paragraph (3) of Article 67-13 and item (iii) of paragraph (1) of Article 67-17).

(3)A person who seeks to obtain the approval referred to in item (i) of paragraph (1) shall file with the Director General of Customs a written application stating the descriptions and other necessary matters of the goods for which the person seeks to make a specific export declaration (i.e., an export declaration made by an authorized exporter pursuant to the provisions of that paragraph for the goods for which the exporter seeks to obtain export permission without bringing the goods into a customs area, etc.; hereinafter the same applies in this Section).

(4)Matters to be stated in an export declaration under specific entrustment, an export declaration for specific manufactured goods and a specific export declaration, and other necessary matters concerning application of the preceding three paragraphs are prescribed by Cabinet Order.

(Revocation of export permission)

Article 67-4.An authorized exporter, a specific entrusting exporter or an exporter of specific manufactured goods, if export permission of special export goods is no longer necessary for the reason that they cease to be exported or on other grounds, may file an application for revocation of the permission with the Director General of Customs who has given the permission.

(2)If an application prescribed in the preceding paragraph is filed or otherwise if it is found necessary in order to ensure the implementation of this Act, the Director General of Customs may revoke export permission for the special export goods before they are loaded onto a vessel, etc. engaged in foreign trade.

(3)The Director General of Customs, if it is found necessary when revoking export permission pursuant to the provisions of the preceding paragraph, may have customs officials inspect the special export goods.

(Notification of loss, etc. of special export goods)

Article 67-5.The main clause of Article 34 (Disposal of foreign goods) applies mutatis mutandis when special export goods stored in a place outside a customs area are disposed of, and paragraph (3) of Article 45 (Liability for payment of customs duty, etc. of a person who has obtained permission) applies mutatis mutandis when special export goods stored in a place outside a customs area have been lost. In this case, the term “the customs” in the main clause of Article 34 is deemed to be replaced with “the Director General of Customs who has given export permission” and the terms “a person who has obtained permission of the customs warehouse” and “the Director General of Customs” in paragraph (3) of Article 45 are deemed to be replaced with “an authorized exporter, a specific entrusting exporter or an exporter of specific manufactured goods, related to the special export goods” and “the Director General of Customs who has given export permission”, respectively.

(Requirements for approval)

Article 67-6.The Director General of Customs, before giving the approval referred to in item (i) of paragraph (1) of Article 67-3 (Special provisions for export declaration), shall examine whether the criteria set forth in the following are met:

(i)that a person who seeks to obtain approval does not fall under any of the following items:

(a)that the person was sentenced to a penalty in violation of the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty or the orders based on these laws or was subject to a disposition of administrative notification, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed or from the day on which the matters indicated in the notification were performed;

(b)that the person was sentenced to a penalty in violation of the provisions concerning exportation, of other laws and regulations as provided for in paragraph (1) or (2) of Article 70 (Certification or confirmation), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed (excluding the person provided for in item (a));

(c)that the person was sentenced to imprisonment without work or heavier punishment in violation of the laws and regulations other than those provided for in item (a) or (b), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(d)that the person was sentenced to a fine in violation of the provisions of the Act on Prevention of Unjust Acts by Organized Crime Group Members or for having committed the offense of Article 204 (Injury), Article 206 (Incitement of injury), Article 208 (Assault), paragraph (1) of Article 208-2 (Unlawful assembly with weapons), Article 222 (Intimidation) or Article 247 (Breach of trust) of the Penal Code or the offense of the Act on Punishment of Physical Violence and Other Acts, and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(e)that the person is a member of an organized crime group, etc.;

(f)that the person is a juridical person whose officer falls under any of items (a) to (e) with respect to the business or the person uses that officer as an agent, employee or other worker;

(g)that the business activities of the person are controlled by a member of organized crime group, etc.;

(h)that a period of three years has not elapsed from the day on which the approval referred to in item (i) of paragraph (1) of Article 67-3 was revoked pursuant to the provisions of item (i) or (ii)(b) of Article 67-11 (Revocation of approval);

(ii)that a person who seeks to obtain approval has the ability to make specific export declaration by means of electronic data processing system or otherwise to properly and surely perform the business activities involved in exportation of goods subject to specific export declaration (including the business activities involved in administration of the goods until they are loaded onto a vessel, etc. engaged in foreign trade for exportation; the same applies in the next item and paragraphs (1) and (2) of Article 67-13);

(iii)that a person who seeks to obtain approval has established, with respect to the business activities involved in exportation of goods subject to specific export declaration, a rule covering matters prescribed by the Ministry of Finance Order as those for ensuring that the person (if the person is a juridical person, including its officers) or the agent, manager or other employee complies with the provisions of this Act and other laws and regulations.

(Improvement measures relating to a rule, etc.)

Article 67-7.The Director General of Customs, if it is found necessary in order to ensure the implementation of this Act for the reason that an authorized exporter fails to make a specific export declaration in accordance with the provisions of this Act or on other grounds, may request the exporter to take necessary measures for improving the rule provided for in item (iii) of the preceding Article or the performance of business activities in connection with the matters specified in the rule, or to newly establish a rule provided for in that item.

(Keeping of books, etc. by an authorized exporter)

Article 67-8.An authorized exporter shall, pursuant to the provisions of Cabinet Order, keep books, stating the descriptions, quantities, prices and other necessary matters of specific export goods (i.e., goods for which a specific export declaration is made and export permission is given by the Director General of Customs; the same applies in paragraph (2) of Article 67-10 and paragraph (2) of Article 94) (hereinafter the books are referred to as “books relating to specific exports and customs duty”) and preserve the books relating to specific exports and customs duty and the documents prepared or received in connection with transaction of specific export goods and other documents prescribed by Cabinet Order (hereinafter these documents are referred to as “documents relating to specific exports and customs duty”).

(Notification of discontinuance of application of special provisions for export declaration)

Article 67-9.An authorized exporter, if application of paragraph (1) of Article 67-3 (Special provisions for export declaration) is no longer necessary, may, pursuant to the provisions of Cabinet Order, notify this to the Director General of Customs who has given the approval referred to in item (i) of that paragraph.

(Invalidation of approval)

Article 67-10.The approval referred to in item (i) of paragraph (1) of Article 67-3 (Special provisions for export declaration) ceases to be effective if any of the situations as set forth in the following items occurs:

(i)when the notification prescribed in the preceding Article is submitted;

(ii)when, after an authorized exporter has died, application prescribed in paragraph (2) of Article 48-2 (Succession of permission), as applied mutatis mutandis pursuant to Article 67-12 (Mutatis mutandis application of provisions on succession of permission) is not made within the period specified in that paragraph, or if disposition not to give the approval referred to in that paragraph is made;

(iii)when an authorized exporter is dissolved;

(iv)when an authorized exporter receives a ruling for commencement of bankruptcy proceedings;

(v)when the Director General of Customs revokes approval.

(2)When the approval referred to in item (i) of paragraph (1) of Article 67-3 ceases to be effective, a person who has obtained the approval or the heir (or, when a juridical person that has been given the approval ceases to exist as a result of merger, the juridical person that survives the merger or is established as a result of the merger) may not be exempted, with respect to specific export goods for which export permission has been given before the approval ceases to be effective, from the obligation of keeping of, and stating in books relating to specific exports and customs duty and preservation of books and documents relating to specific exports and customs duty as prescribed in paragraph (1) of Article 67-8 (Keeping of books, etc. by an authorized exporter) and other obligations associated with the special export goods imposed pursuant to the provisions of this Act and other laws concerning customs duty.

(Revocation of approval)

Article 67-11.The Director General of Customs, if any of the situations as set forth in the following items occurs, may revoke the approval referred to in item (i) of paragraph (1) of Article 67-3 (Special provisions for export declaration):

(i)when keeping of, or entry into books relating to specific exports and customs duty or preservation of books relating to specific exports and customs duty and documents relating to specific exports and customs duty as prescribed in paragraph (1) of Article 67-8 (Keeping of books, etc. by an authorized exporter) is not made in the manner prescribed by Cabinet Order as provided for in that paragraph or when any false statement is entered into these books or documents;

(ii)when an authorized exporter falls under any of the following:

(a)when the exporter does not meet the criteria provided for in item (i) or (ii) of Article 67-6 (Requirements for approval);

(b)when the exporter fails to respond to the request of the Director General of Customs as prescribed in Article 67-7 (Improvement measures relating to a rule, etc.).

(Mutatis mutandis application of provisions on succession of permission)

Article 67-12.Paragraphs (1) to (5) of Article 48-2 (Succession of permission) apply mutatis mutandis to an authorized exporter. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

(Authorization of manufacturers)

Article 67-13.A person who manufactures products may, upon application, be authorized by the Director General of Customs as a person who is found to be capable of properly managing the performance of the business activities relating to exportation of products manufactured by that person in such a way that the business activities are properly and surely carried out by that person, the exporter or other person.

(2)A person who seeks to obtain the authorization referred to in the preceding paragraph (hereinafter in this Article referred to as “applicant”) shall file a written application stating the domiciles or residences and names, of the applicant and an exporter of specific manufactured products (i.e., a person who seeks to export products manufactured by the applicant and performs the business activities relating to export of the products under the management of the applicant; hereinafter the same applies in this Section) and other necessary matters, with the Director General of Customs having jurisdiction over the location of the domicile or residence of the applicant.

(3)If the Director General of Customs finds that the application for authorization prescribed in paragraph (1) meets the following criteria, the Director General of Customs shall give the authorization:

(i)that an applicant does not fall under any of the following:

(a)that the applicant was sentenced to punishment in violation of the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty or the provisions of the orders based on these laws, or was subject to a disposition of administrative notification, and a period of three years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed or from the day on which the matters indicated in the notification were performed;

(b)that the applicant was sentenced to punishment in violation of the provisions on exportation under other laws and regulations as provided for in paragraph (1) or (2) of Article 70 (Certification or confirmation), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed (excluding the person provided for in item (a));

(c)that the applicant was sentenced to imprisonment without work or heavier punishment in violation of the provisions of the laws and regulations other than those provided for in items (a) and (b), and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(d)that the applicant was sentenced to a fine in violation of the provisions of the Act on Prevention of Unjust Acts by Organized Crime Group Members or for having committed the offense of Article 204 (Injury), Article 206 (Incitement of injury), Article 208 (Assault), paragraph (1) of Article 208-2 (Unlawful assembly with weapons), Article 222 (Intimidation) or Article 247 (Breach of trust) of the Penal Code or the offense of the Act on Punishment of Physical Violence and Other Acts, and a period of two years has not elapsed from the day on which the execution of the sentence was completed or the sentence ceased to be executed;

(e)that the applicant is a member of an organized crime group, etc.;

(f)that the applicant is a juridical person whose officer falls under any of items (a) to (e) with respect to the business activities or the applicant uses such an officer as an agent, employee or other worker;

(g)that the applicant’s business activities are controlled by a member of organized crime group, etc.;

(h)that a period of three years has not elapsed from the day on which authorization given under paragraph (1) was revoked pursuant to the provisions of paragraph (1) of Article 67-17 (Revocation of authorization);

(ii)that an applicant falls under all of the following:

(a)that the applicant has the ability to prepare a proper written confirmation of goods for specific manufactured goods (i.e., goods manufactured by the applicant; hereinafter the same applies in this item) that an exporter of specific manufactured goods acquires from the applicant, to deliver the written confirmation of goods to the exporter of specific manufactured goods and otherwise to carry out the business activities necessary for ensuring that export declaration for specific manufactured goods is properly made;

(b)that the applicant has an understanding of the whole process relating to the management of the specific manufactured goods until they are loaded onto a vessel, etc. engaged in foreign trade for export and has the ability to carry out the business activities necessary for ensuring that the management is properly performed in accordance with the details of export declaration for the specific manufactured goods;

(c)that the applicant establishes a rule covering the matters prescribed by the Ministry of Finance Order as those required to be performed in order to properly and surely carry out the business activities as provided for in items (a) and (b);

(iii)that an exporter of specific manufactured goods falls under both of the following:

(a)that the exporter does not fall under any of items (i)(a) to (i)(h) of Article 67-6 (Requirements for approval);

(b)that the exporter has the ability to make an export declaration by means of electronic data processing system.

(4)Necessary matters for filing of a written application referred to in paragraph (2) and other necessary matters concerning application of the preceding three paragraphs are prescribed by Cabinet Order.

(Improvement measures relating to a rule, etc.)

Article 67-14.If the Director General of Customs finds it necessary in order to ensure the implementation of this Act for the reason that an export declaration of specific manufactured goods related to products manufactured by a person authorized under paragraph (1) of the preceding Article (hereinafter referred to as “authorized manufacturer” in this Section) has not been made in accordance with the provisions of this Act or on other grounds, the Director General of Customs may request the authorized manufacturer to take necessary measures for improving the rule provided for in item (ii)(c) of paragraph (3) of that Article or the performance of business activities in connection with the matters specified in that rule or to newly establish a rule provided for in that item.

(Notification of discontinuance of authorization of an authorized manufacturer)

Article 67-15.If an authorized manufacturer no longer needs the authorization referred to in paragraph (1) of Article 67-13 (Authorization of manufacturers), the authorized manufacturer may, pursuant to the provisions of Cabinet Order, notify this to the Director General of Customs who has given the authorization referred to in that paragraph.

(Invalidation of authorization)

Article 67-16.The authorization referred to in paragraph (1) of Article 67-13 (Authorization of manufacturers) ceases to be effective if any of the situations as set forth in the following items occurs:

(i)when the notification prescribed in the preceding Article is submitted;

(ii)when, after an authorized manufacturer has died, application prescribed in paragraph (2) of Article 48-2 (Succession of permission), as applied mutatis mutandis pursuant to Article 67-18 is not made within the period specified in that paragraph or when a disposition not to give the approval referred to in that paragraph is made;

(iii)when an authorized manufacturer is dissolved;

(iv)when an authorized manufacturer receives a ruling for commencement of bankruptcy proceedings;

(v)when the Director General of Customs revokes the authorization.

(2)When the authorization referred to in paragraph (1) of Article 67-13 ceases to be effective, if there remain goods subject to an export declaration for specific manufactured goods (limited to goods the exportation of which has not been permitted), a person who has been given the authorization or the heir (or, when an authorized juridical person has ceased to exist as a result of merger, the juridical person that survives the merger or the juridical person that has been established as a result of the merger) is deemed to be granted the authorization until the customs clearance procedures for the goods are completed.

(Revocation of authorization)

Article 67-17.If the Director General of Customs finds that an authorized manufacturer falls under any of the situations provided for in the following items, the Director General of Customs may revoke the authorization referred to in paragraph (1) of Article 67-13 (Authorization of manufacturers):

(i)that the authorized manufacturer falls under any of items (i)(a) to (i)(g) of paragraph (3) of Article 67-13 or ceases to fall under item (ii)(a) or (ii)(b) of that paragraph;

(ii)that the authorized manufacturer fails to respond to the request of the Director General of Customs prescribed in Article 67-14 (Improvement measures relating to a rule, etc.);

(iii)that the authorized manufacturer delivers a false written confirmation of goods to an exporter of specific manufactured goods;

(iv)that the exporter of specific manufactured goods ceases to fall under item (iii)(a) or (iii)(b) of paragraph (3) of Article 67-13.

(2)Necessary matters concerning procedures for revocation of authorization prescribed in the preceding paragraph and other necessary matters concerning application of that paragraph are prescribed by Cabinet Order.

(Mutatis mutandis application of provisions on succession of permission)

Article 67-18.Paragraphs (1) to (5) of Article 48-2 (Succession of permission) apply mutatis mutandis to an authorized manufacturer. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

Section 2-2 Special Provisions for Import Declaration

(Special provisions for import declaration)

Article 67-19.Notwithstanding the provisions of paragraph (1) or (2) of Article 67-2 (Procedures for export or import declaration), an authorized importer or specific entrusting importer may, pursuant to the provisions of Cabinet Order, file an import declaration (excluding an import declaration for goods prescribed by Cabinet Order) with any of the Directors General of Customs.

Section 3 Documents to Be Submitted and Procedures for Inspection

(Documents to be submitted at the time of export or import declaration)

Article 68.When a declaration prescribed in Article 67 (Export or import permission) has been made, if it is necessary for determining whether export or import permission is to be given or for determining whether the benefits accruing from the special provisions of any convention concerning customs duty (including the equivalent benefits prescribed by Cabinet Order) is to be granted, the Director General of Customs may require submission of a written contract, invoice or other documents necessary for confirming the details of the declaration or other documents prescribed by Cabinet Order as those necessary for granting the benefits.

(Delegation of authority for inspection of goods)

Article 68-2.The Director General of Customs, when goods subject to a declaration prescribed in Article 67 (Export or import permission) are located in the area of the customs under the jurisdiction of another Director General of Customs, if it is found necessary to conduct the inspection prescribed in that Article for these goods, may delegate the authority to inspect the goods to that another Director General of Customs.

(Place for inspection of goods)

Article 69.The inspection referred to in Article 67 (Export or import permission) shall be conducted at a place designated by the Director General of Customs.

(2)A person who seeks to have the inspection referred to in Article 67 conducted at a place other than the place designated pursuant to the provisions of the preceding paragraph shall obtain permission of the Director General of Customs having jurisdiction over the place where goods subject to the inspection are stored.

(3)The Director General of Customs shall give the permission referred to in the preceding paragraph if it is found that, due to the nature or quantity of the goods concerned, it is inappropriate to inspect the goods at the place designated by the Director General of Customs and that no difficulty will occur in conducting the inspection efficiently.

Section 4 Goods the Exportation or Importation of Which Is Prohibited

Subsection 1 Goods the Exportation of Which Is Prohibited

(Goods the exportation of which is prohibited)

Article 69-2.Goods set forth in the following shall not be exported:

(i)narcotic drugs, psychotropic substances, cannabis, opium, opium poppies, and stimulants (including raw materials thereof as referred to in the Stimulant Drugs Control Act (Act No. 252 of 1951)); provided, however, that those exported by the Government or by a person authorized, under other laws and regulations, to export pursuant to the provisions thereof are excluded;

(ii)child pornography (i.e., child pornography provided for in paragraph (3) of Article 2 (Definitions) of the Act on Regulation and Punishment of Activities Relating to Child Prostitution and Child Pornography, and the Protection of Children (Act No. 52 of 1999));

(iii)goods that infringe patent rights, utility model rights, design rights, trademark rights, copyrights, copyright neighboring rights or breeder’s rights;

(iv)goods that compose the acts set forth in items (i) to (iii), (x), (xvii) or (xviii) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act (Act No. 47 of 1993) (excluding those acts as specified in items (i) to (vi), (viii) or (x) of paragraph (1) of Article 19 (Exclusion from application, etc.) of that Act for the category of unfair competition as set forth respectively in these items).

(2)The Director General of Customs may confiscate and dispose of goods that are set forth in item (i), (iii) or (iv) of the preceding paragraph and are sought to be exported.

(3)If the Director General of Customs has reasonable grounds to believe that there are, among those goods that a person seeks to export in accordance with the provisions of this Chapter, goods that are found to fall under those as set forth in item (ii) of paragraph (1), the Director General of Customs shall notify that finding to the person who seeks to export these goods.

(Verification procedures pertaining to goods the exportation of which is prohibited)

Article 69-3.If the Director General of Customs considers that there are, among those goods that a person seeks to export in accordance with the provisions of this Chapter, goods that fall under those set forth in item (iii) or (iv) of paragraph (1) of the preceding Article, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, initiate procedures for verifying whether these goods fall under those set forth in these items (hereinafter the procedures identified in this paragraph are referred to as “verification procedures” in this Subsection). In this case, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, notify a patentholder or other right holder associated with these goods (i.e., a holder of a patent right, utility model right, design right, trademark right, copyright, copyright neighboring right, breeder’s right or right to seek an injunction against unfair competition (i.e., a person who may, pursuant to the provisions of paragraph (1) of Article 3 (Right to seek an injunction) of the Unfair Competition Prevention Act, seek the suspension or prevention of infringement of business interests the infringement of which has been caused by the acts specified in item (iv) of paragraph (1) of the preceding Article with respect to the goods set forth in that item; hereinafter the same applies in this Subsection); hereinafter in this Article and the next Article the same applies) and a person who seeks to export the goods of the fact that verification procedures are to be initiated for the goods and that the patentholder or other right holder and the exporter may produce evidence and state their opinions as to whether they do or do not fall under those set forth in item (iii) or (iv) of paragraph (1) of the preceding Article and other matters specified by Cabinet Order.

(2)When the Director General of Customs issues a notification prescribed in the preceding paragraph, the Director General of Customs shall also notify the patentholder or other right holder associated with the goods at issue of the names and addresses of the person who seeks to export these goods and their consignee and also notify the person who seeks to export these goods of the name and address of the patentholder or other right holder concerned.

(3)If the Director General of Customs finds that the name or address of a manufacturer of goods subject to verification procedures is evident from a written export declaration filed with, or other documents submitted to the Director General of Customs in connection with export of these goods under Article 67 (Export or import permission), from other documents submitted to the Director General of Customs in the verification procedures or from indications affixed to the goods, the Director General of Customs shall notify the patentholder or other right holder concerned of the name or address of the manufacturer, simultaneously with the notification referred to in paragraph (1) or thereafter while the verification procedures are carried out.

(4)The measures referred to in paragraph (2) of the preceding Article may not be taken by the Director General of Customs with respect to goods that a person seeks to export in accordance with the provisions of this Chapter unless these goods have undergone verification procedures.

(5)If the Director General of Customs has verified that the goods subject to verification procedures (in the next paragraph referred to as “suspect goods”) either fall or do not fall under those set forth in item (iii) or (iv) of paragraph (1) of the preceding Article, the Director General of Customs shall notify the patentholder or other right holder associated with the goods and the person who seeks to export the goods of the findings and the reasons therefor; provided, however, that this does not apply if the Director General of Customs has issued a notification prescribed in the next paragraph.

(6)If, before the notification of verification related to suspect goods as prescribed in the main clause of the preceding paragraph is issued, the suspect goods have ceased to be exported, the Director General of Customs shall notify this to the patentholder or other right holder associated with the suspect goods and shall discontinue the verification procedures. In this case, a person who seeks to cease exportation of the suspect goods shall notify this to the Director General of Customs in advance.

(7)Any person who has been notified under paragraph (2) or (3) shall not divulge any matters to have been notified to any other person without reason, nor shall use them for any unjust purposes.

(Procedures, etc. for filing of an application related to goods the exportation of which is prohibited)

Article 69-4.A patentholder or other right holder may, pursuant to the provisions of Cabinet Order, produce to any of the Directors General of Customs evidence necessary to demonstrate prima facie infringement with respect to goods that are found to infringe the patent right, utility model right, design right, trademark right, copyright, copyright neighboring right, breeder’s right or business interests of that patentholder or other right holder, and may file with any of the Directors General of Customs an application for initiating verification procedures by any of the Directors General of Customs if these goods are likely to be exported in accordance with the provisions of this Chapter (hereinafter in this Article and in the next Article, the Director General of Customs with whom an application is filed is referred to as “the Director General of Customs with whom application is filed”). In this case, a holder of right to seek an injunction against unfair competition shall, pursuant to the provisions of the Ministry of Economy, Trade and Industry Order, seek from the Minister of that Ministry, if the goods are those set forth in item (iv) of paragraph (1) of Article 69-2 (Goods the exportation of which is prohibited) (excluding those related to item (x) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act), the opinion with respect to the matters specified by that Order, which may stipulate, among other things, that the indication of goods, etc. provided for in item (i) of paragraph (1) of Article 2 of that Act and related to that person be well known among consumers, or if the goods are those set forth in item (iv) of paragraph (1) of Article 69-2 (limited to those related to item (x) of paragraph (1) of Article 2 of that Act), the certification with respect to the fact that the goods at issue are those generated by the acts of unauthorized use as provided for in item (x) of paragraph (1) of Article 2 of that Act and that a person who is likely to export the goods is not the person who was not aware, at the time when they were transferred to that person, that they were generated by such acts and was not grossly negligent in failing to know that they were so generated, and shall submit the details of the opinion or certification in writing to the Director General of Customs with whom application is filed.

(2)When an application prescribed in the preceding paragraph has been filed, if it is found that the evidence is not sufficient to demonstrate the fact of prima facie infringement related to that application, the Director General of Customs with whom application is filed may elect not to accept that application.

(3)When the application prescribed in paragraph (1) has been filed, if the Director General of Customs with whom application is filed has accepted the application, the Director General of Customs shall notify the person who has filed the application of that fact and the effective period of that application (i.e., the period during which the Director General of Customs is to carry out, based on that application, verification procedures each time the Director General of Customs finds that there are, among goods likely to be exported during that period in accordance with the provisions of this Chapter, goods related to the application) and if the Director General of Customs has not accepted the application pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify that person of that fact and the reason therefor.

(4)When the Director General of Customs has accepted the application prescribed in paragraph (1) or such an application has been accepted by any other Director General of Customs, if verification procedures for goods that relate to the application has been initiated, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, provide the person who has filed that application or the person who seeks to export the goods with an opportunity to inspect the goods, upon application of the person concerned; provided, however, that this does not apply if verification procedures have been discontinued pursuant to the provisions of paragraph (6) of the preceding Article.

(Seeking opinions of technical advisers when an application for export suspension is filed)

Article 69-5.When an application prescribed in paragraph (1) of the preceding Article has been filed, the Director General of Customs with whom application is filed may, if it is found necessary to do so, designate persons with academic background and experience in intellectual property rights (i.e., intellectual property rights as defined in paragraph (2) of Article 2 (Definitions) of the Intellectual Property Basic Act (Act No. 122 of 2002); hereinafter the same applies), having no special interests with the parties involved in the case associated with the application, to serve as technical advisers and may, pursuant to the provisions of Cabinet Order, seek opinions of the technical advisers as to whether the evidence produced pursuant to the provisions of paragraph (1) of the preceding Article is sufficient to demonstrate the fact of prima facie infringement related to that application; provided, however, that this does not apply to the matters with respect to which the opinion or certification of the Minister of Economy, Trade and Industry is to be sought pursuant to the provisions of the second sentence of paragraph (1) of the preceding Article.

(Deposit, etc. pertaining to application for export suspension)

Article 69-6.When the Director General of Customs has accepted the application prescribed in paragraph (1) of Article 69-4 (Procedures, etc. for filing of an application related to goods the exportation of which is prohibited) or such an application has been accepted by any other Director General of Customs, if it is found necessary in order to ensure compensation for damages that a person who seeks to export goods related to that application is likely to incur from being unable to export until completion of the verification procedures for these goods, the Director General of Customs may order a person who has filed the application (hereinafter in this Article referred to as “applicant”) to deposit, within a specified period, an amount of money deemed to be sufficient to cover the damages with the deposit office designated by the Director General of Customs.

(2)If the amount of monetary deposit provided pursuant to the provisions of the preceding paragraph is found insufficient to compensate for the damages provided for in that paragraph, the Director General of Customs may order an applicant to deposit, within a specified period, an amount of money deemed to be equivalent to the shortfall.

(3)The monetary deposit to be provided pursuant to the provisions of the preceding two paragraphs may be replaced by National Government Bonds, Local Government Bonds or other securities that the Director General of Customs finds to be secure (other securities include book-entry transfer bonds as provided for in paragraph (1) of Article 278 (Deposit of transferred bonds) of the Act on Book-Entry Transfer of Corporate Bonds, Shares, etc. (Act No. 75 of 2001); the same applies in this Article and Article 69-10 (Request for discontinuance of verification procedures pertaining to goods the exportation of which is prohibited, etc.)).

(4)Necessary matters concerning procedures required by the Director General of Customs in connection with the deposit provided pursuant to the order prescribed in paragraph (1) or (2) are specified by Cabinet Order.

(5)If, pursuant to the provisions of Cabinet Order, an applicant has entered into a contract providing that the amount of money necessary to compensate for the damages provided for in paragraph (1) shall be paid on the applicant’s behalf and has notified the Director General of Customs of this fact within the period specified in paragraph (1) or (2), the applicant may not deposit the whole or part of the amount referred to in paragraph (1) or (2) while the contract is effective.

(6)An exporter of the goods referred to in paragraph (1) has the right, with respect to the claim for compensation for damages against an applicant as provided for in that paragraph, to be paid, in advance of any other creditors, from the monetary deposit provided pursuant to the provisions of paragraphs (1) and (2) (the monetary deposit includes securities prescribed in paragraph (3); the same applies in paragraphs (8) to (10)).

(7)Necessary matters concerning the exercise of right referred to in the preceding paragraph are prescribed by Cabinet Order.

(8)An applicant who has provided the monetary deposit pursuant to the provisions of paragraph (1) or (2) may recover the deposit if any of the situations as set forth in the following items occurs:

(i)if the applicant has received a notification prescribed in the main clause of paragraph (5) of Article 69-3 (Verification procedures pertaining to goods the exportation of which is prohibited), stating that the goods that have caused the deposit to be provided fall under those set forth in item (iii) or (iv) of paragraph (1) of Article 69-2 (Goods the exportation of which is prohibited);

(ii)if the applicant has received a notification prescribed in paragraph (6) of Article 69-3 with respect to goods that have caused the deposit to be provided;

(iii)if it has been proved to, and confirmed by the Director General of Customs that the exporter of the goods referred to in paragraph (1) has consented to the recovery of the monetary deposit, that the right to claim for compensation for damages as provided for in that paragraph has been extinguished by prescription or otherwise that the deposit for compensation for damages as provided for in that paragraph is no longer necessary;

(iv)if the applicant has entered into a contract referred to in paragraph (5) and the contract has been approved by the Director General of Customs pursuant to the provisions of Cabinet Order;

(v)if, pursuant to the provisions of Cabinet Order, it has been approved by the Director General of Customs to provide another deposit in lieu of the deposit actually provided, on the grounds of redemption of the deposited securities or on other grounds.

(9)Necessary matters concerning recovery of monetary deposit prescribed in the preceding paragraph are specified by the Ministry of Justice Order and the Ministry of Finance Order.

(10)If a person who has been ordered to deposit pursuant to the provisions of paragraph (1) or (2) fails to deposit, within the period specified pursuant to the provisions of these paragraphs, the whole amount of money ordered to be deposited and also fails to issue a notification of entering into a contract prescribed in paragraph (5), the Director General of Customs may discontinue verification procedures with respect to goods that have caused the deposit to be provided.

(11)If the verification procedures have been discontinued pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify this to a person who has made an application related to the verification procedures and a person who seeks to export the goods subject to the verification procedures.

(Request for hearing opinions pertaining to goods the exportation of which is prohibited, etc.)

Article 69-7.If verification procedures have been initiated to determine whether goods do or do not fall under those that infringe a patent right, utility model right or design right or those that compose the acts set forth in item (x) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act (excluding the acts provided for in item (viii) of paragraph (1) of Article 19 (Exclusion from application, etc.) of that Act; hereinafter the same applies in this paragraph and paragraph (9)), a patentholder or other right holder related to these goods (i.e., a holder of patent right, utility model right, design right or right to seek an injunction against unfair competition (limited to a person related to goods that compose the acts set forth in item (x) of paragraph (1) of Article 2 of that Act; hereinafter the same applies in this paragraph, paragraph (9) and paragraph (1) of Article 69-10 (Request for discontinuance of verification procedures pertaining to goods the exportation of which is prohibited, etc.); hereinafter the same applies in this Article) or an exporter related to the goods (i.e., a person who seeks to export goods subject to the verification procedures; hereinafter the same applies in this Article) may, pursuant to the provisions of Cabinet Order, request the Director General of Customs to hear, when the verification procedures have been initiated to determine whether the goods subject to the verification procedures do or do not fall under those that infringe the patent right, utility model right or design right of the patentholder or other right holder (excluding a holder of right to seek an injunction against unfair competition), the opinion of the Commissioner of the Patent Office with respect to the technical scope, etc. (i.e., technical scope provided for in paragraph (1) of Article 70 (Technical scope of patented invention) of the Patent Act (Act No. 121 of 1959) (including the cases where applied mutatis mutandis pursuant to Article 26 (Mutatis mutandis application of the Patent Act) of the Utility Model Act (Act No. 123 of 1959)), or the scope provided for in paragraph (1) of Article 25 (Scope of registered design, etc.) of the Design Act (Act No. 125 of 1959); the same applies in paragraph (9) and Article 69-9 (Seeking opinions of technical advisers in verification procedures pertaining to goods the exportation of which is prohibited)) or when the verification procedures have been initiated to determine whether the goods subject to the verification procedures do or do not fall under those that compose the acts set forth in item (x) of paragraph (1) of Article 2 of the Unfair Competition Prevention Act and related to the patentholder or other right holder (limited to a holder of right to seek an injunction against unfair competition), the opinion of the Minister of Economy, Trade and Industry as to whether the goods subject to the verification procedures do or do not fall under those that compose the acts set forth in that item, provided that the request is made within the period during which the verification procedures are carried out, but before the day on which ten days (public holidays of the administrative organs are not included) elapse from the day on which the patentholder or other right holder receives the notification prescribed in paragraph (1) of Article 69-3 (Verification procedures pertaining to goods the exportation of which is prohibited) (hereinafter in this paragraph and paragraph (2) of Article 69-10 referred to as “the date of notification”) (in paragraphs (1) and (2) of Article 69-10, the day on which ten days elapse is referred to as “the day on which ten days elapse”) (if the Director General of Customs, before expiry of the period of ten days, finds it necessary to extend the period in consideration of the progress made with respect to verification procedures or other circumstances and notifies the patentholder or other right holder and the exporter of that finding, the period may be extended until the day on which twenty days (public holidays of the administrative organs are not included) elapse from the date of notification (in paragraph (1) of Article 69-10, the day on which twenty days elapse from the date of notification is referred to as “the day on which twenty days elapse”))

(2)If a request prescribed in the preceding paragraph has been made, the Director General of Customs, pursuant to the provisions of Cabinet Order, shall seek the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office; provided, however, that this does not apply if the Director General of Customs finds it evident that goods subject to the request as prescribed in that paragraph do or do not fall under those set forth in item (iii) or (iv) of paragraph (1) of Article 69-2 (Goods the exportation of which is prohibited) or otherwise if the Director General of Customs finds it unnecessary to seek the opinion of the Minister or the Commissioner.

(3)When a request prescribed in paragraph (1) has been made, if the Director General of Customs has not sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the proviso to the preceding paragraph, the Director General of Customs shall notify this and the reason therefor to the patentholder or other right holder or the exporter, who has made the request prescribed in paragraph (1).

(4)If the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office has been sought an opinion by the Director General of Customs pursuant to the provisions of the main clause of paragraph (2), the Minister or the Commissioner shall provide the opinion in writing within thirty days from the day on which the opinion is sought.

(5)If the Director General of Customs, pursuant to the provisions of the main clause of paragraph (2), has sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office, the Director General of Customs shall notify this to the patentholder or other right holder and the exporter concerned.

(6)If the opinion prescribed in paragraph (4) has been provided, the Director General of Customs shall notify this fact and the details of the opinion to the patentholder or other right holder and the exporter concerned.

(7)When the Director General of Customs has sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the main clause of paragraph (2), the Director General of Customs, before the opinion prescribed in paragraph (4) is provided, shall not determine that, if a person who requests the Director General of Customs to seek the opinion under paragraph (1) is a patentholder or other right holder, the goods at issue do not fall under those set forth in item (iii) or (iv) of paragraph (1) of Article 69-2 or that, if a person who requests the Director General of Customs to seek the opinion under paragraph (1) is an exporter, the goods at issue fall under those set forth in item (iii) or (iv) of paragraph (1) of that Article.

(8)When the Director General of Customs has sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the main clause of paragraph (2), if, before the opinion prescribed in paragraph (4) is provided, the Director General of Customs has determined that, when a person who requests the opinion under paragraph (1) is a patentholder or other right holder, the goods at issue fall under those set forth in item (iii) or (iv) of paragraph (1) of Article 69-2 or that, when a person who requests the opinion under paragraph (1) is an exporter, the goods at issue do not fall under those set forth in item (iii) or (iv) of paragraph (1) of that Article, or when the Director General of Customs has discontinued the verification procedures for the goods at issue pursuant to the provisions of paragraph (6) of Article 69-3 or paragraph (10) of the preceding Article, the Director General of Customs shall notify the Minister or the Commissioner of that fact. In this case, the Minister or the Commissioner is not required to provide the opinion prescribed in paragraph (4).

(9)In verification procedures for determining whether goods do or do not fall under those that infringe a patent right, utility model right or design right or those that compose the acts as set forth in item (x) of paragraph (1) of Article 2 of the Unfair Competition Prevention Act, if it is found necessary for the purpose of verification prescribed in paragraph (1) of Article 69-3, the Director General of Customs may seek, pursuant to the provisions of Cabinet Order, when the verification procedures have been initiated to determine whether goods do or do not fall under those that infringe a patent right, utility model right or design right, the opinion of the Commissioner of the Patent Office with respect to the technical scope, etc. as to whether the goods subject to the verification procedures do or do not fall under those that infringe the patent right, utility model right or design right of the patentholder or other right holder concerned (excluding a holder of right to seek an injunction against unfair competition), or when the verification procedures have been initiated to determine whether goods do or do not fall under those that compose the acts set forth in that item, the opinion of the Minister of Economy, Trade and Industry as to whether the goods subject to the verification procedures do or do not fall under those that compose the acts set forth in that item and related to the patentholder or other right holder concerned (limited to a holder of right to seek an injunction against unfair competition).

(10)Paragraphs (4) to (6) of this Article and paragraph (5) of the next Article apply mutatis mutandis when opinion is sought pursuant to the provisions of the preceding paragraph. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

(Seeking opinions of the Minister of Agriculture, Forestry and Fisheries, etc. in verification procedures pertaining to goods the exportation of which is prohibited)

Article 69-8.In verification procedures for determining whether goods do or do not fall under those that infringe a breeder’s right or those set forth in item (iv) of paragraph (1) of Article 69-2 (Goods the exportation of which is prohibited) (excluding goods related to item (x) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act: hereinafter the same applies in this paragraph and paragraph (5)), if it is found necessary for the purpose of verification prescribed in paragraph (1) of Article 69-3 (Verification procedures pertaining to goods the exportation of which is prohibited), the Director General of Customs may, pursuant to the provisions of Cabinet Order, seek, for reference purposes, the opinion of the Minister of Agriculture, Forestry and Fisheries in the case of verification procedures for verifying whether the goods at issue do or do not fall under those that infringe a breeder’s right or the opinion of the Minister of Economy, Trade and Industry in the case of verification procedures for verifying whether the goods at issue do or do not fall under those set forth in item (iv) of paragraph (1) of Article 69-2.

(2)When the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry has been sought an opinion by the Director General of Customs pursuant to the provisions of the preceding paragraph, the Minister concerned shall provide the opinion in writing within thirty days from the date on which the opinion is sought.

(3)When the Director General of Customs has sought the opinion pursuant to the provisions of paragraph (1), the Director General of Customs shall notify this to a holder of breeder’s right or a holder of right to seek an injunction against unfair competition, involved in the verification procedures, and to a person who seeks to export goods subject to the verification procedures.

(4)When the opinion prescribed in paragraph (2) has been provided, the Director General of Customs shall notify this and the details of the opinion to a holder of breeder’s right or a holder of right to seek an injunction against unfair competition, referred to in the preceding paragraph and to a person who seeks to export the goods subject to the verification procedures.

(5)When the Director General of Customs has sought the opinion of the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry pursuant to the provisions of paragraph (1), if the Director General of Customs, before the opinion prescribed in paragraph (2) is provided, has determined that the goods at issue do or do not fall under those that infringe a breeder’s right or those set forth in item (iv) of paragraph (1) of Article 69-2, or if the Director General of Customs has discontinued verification procedures for the goods at issue pursuant to the provisions of paragraph (6) of Article 69-3 or paragraph (10) of Article 69-6 (Deposit, etc. pertaining to application for export suspension), the Director General of Customs shall notify the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry of that fact. In this case, the Minister concerned is not required to provide the opinion prescribed in paragraph (2).

(Seeking opinions of technical advisers in verification procedures pertaining to goods the exportation of which is prohibited)

Article 69-9.In verification procedures for determining whether goods do or do not fall under those set forth in item (iii) of paragraph (1) of Article 69-2 (Goods the exportation of which is prohibited) (excluding goods that infringe a breeder’s right), if it is found necessary for the purpose of verification prescribed in paragraph (1) of Article 69-3 (Verification procedures pertaining to goods the exportation of which is prohibited), the Director General of Customs may designate persons with academic background and experience in intellectual property rights, having no special interests with the parties involved in the cases subject to the verification procedures, to serve as technical advisers, and may, pursuant to the provisions of Cabinet Order, seek, for reference purposes, opinions of the technical advisers for the purpose of the verification; provided, however, that this does not apply to the technical scope, etc.

(Request for discontinuance of verification procedures pertaining to goods the exportation of which is prohibited, etc.)

Article 69-10.If verification procedures have been initiated with respect to goods that relate to the application prescribed in paragraph (1) of Article 69-4 (Procedures, etc. for filing of an application related to goods the exportation of which is prohibited) that has been filed by a holder of a patent right, utility model right, design right or right to seek an injunction against unfair competition (hereinafter in this Article referred to as “applying patentholder, etc.”) and has been accepted, a person who seeks to export the goods may, pursuant to the provisions of Cabinet Order, request the Director General of Customs to discontinue the verification procedures after the day as specified in each of the following items for the category of cases as set forth respectively therein, provided that the request is made while the verification procedures are carried out:

(i)when it has been notified that the period until the day on which ten days elapse is extended pursuant to the provisions of paragraph (1) of Article 69-7 (Request for hearing opinions pertaining to goods the exportation of which is prohibited, etc.): the day on which twenty days elapse (if a notification stating that the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office has been sought pursuant to the provisions of paragraph (5) of Article 69-7 (including the cases where applied mutatis mutandis pursuant to paragraph (10) of Article 69-7; the same applies in the next item) has been received, then the day on which twenty days elapse or the day on which ten days elapse from the date of receipt of the notification prescribed in paragraph (6) of Article 69-7, related to seeking of the opinion (including the cases where applied mutatis mutandis pursuant to paragraph (10) of Article 69-7; the same applies in the next item), whichever comes later);

(ii)(ii) in the case other than the case set forth in the preceding item: the day on which ten days elapse (if a notification stating that the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office has been sought pursuant to the provisions of paragraph (5) of Article 69-7 has been received, the day on which ten days elapse or the day on which ten days elapse from the date of receipt of the notification related to seeking of the opinion, as prescribed in paragraph (6) of Article 69-7, whichever comes later).

(2)If the Director General of Customs has initiated verification procedures with respect to goods that relate to the application of the applying patentholder, etc., the Director General of Customs shall, before the day on which ten days elapse, notify the date of notification to a person who seeks to export the goods.

(3)If discontinuance of verification procedures has been requested pursuant to the provisions of paragraph (1), the Director General of Customs shall notify the applying patentholder, etc. who has filed an application related to the verification procedures of that request and shall order the person who has so requested (hereinafter in this Article referred to as “requester”) to deposit, within a specified period, the amount of money deemed sufficient to cover compensation for damages that the applying patentholder, etc. is likely to incur from export of the goods subject to the verification procedures with the designated deposit office.

(4)The monetary deposit to be provided pursuant to the provisions of the preceding paragraph may be replaced by National Government Bonds, Local Government Bonds or other securities that the Director General of Customs finds to be secure.

(5)Necessary matters concerning procedures required by the Director General of Customs with respect to the deposit provided pursuant to the order prescribed in paragraph (3) are specified by Cabinet Order.

(6)If, pursuant to the provisions of Cabinet Order, the requester has entered into a contract that provides that the amount necessary to compensate for damages as provided for in paragraph (3) shall be paid on the requester’s behalf and has notified the Director General of Customs of this fact within the period specified under that paragraph, then the requester may not deposit the whole or part of the amount referred to in that paragraph while the contract is effective.

(7)The applying patentholder, etc. referred to in paragraph (3) has the right, with respect to the right to claim for compensation for damages provided for in that paragraph against the requester, to be paid in advance of any other creditors from the monetary deposit provided pursuant to the provisions of that paragraph (the monetary deposit includes securities prescribed in paragraph (4); the same applies in paragraphs (9) to (11)).

(8)Necessary matters concerning the exercise of right referred to in the preceding paragraph are prescribed by Cabinet Order.

(9)A requester who has provided the monetary deposit pursuant to the provisions of paragraph (3) may recover the deposit if the situation falls under any of the cases as set forth in the following items:

(i)if it has been proved to, and confirmed by the Director General of Customs that the applying patentholder, etc. referred to in paragraph (12) has consented to the recovery of the deposit, that the right to claim for compensation for damages as provided for in paragraph (3) has been extinguished by prescription or otherwise that the deposit for compensation for damages as provided for in paragraph (3) is no longer necessary;

(ii)if the contract referred to in paragraph (6) has been entered into and approved by the Director General of Customs pursuant to the provisions of Cabinet Order;

(iii)if, pursuant to the provisions of Cabinet Order, the Director General of Customs has approved provision of another deposit in lieu of the deposit actually provided, on the grounds of redemption of the deposited securities or on other grounds;

(iv)in addition to what is set forth in the preceding three items, if the applying patentholder, etc. referred to in paragraph (12) fails to institute, within thirty days from the date of receipt of the notification prescribed in that paragraph, the judicial action for claiming for compensation for damage as provided for in paragraph (3).

(10)Necessary matters concerning recovery of the monetary deposit prescribed in the preceding paragraph are specified by the Ministry of Justice Order and the Ministry of Finance Order.

(11)If a person who has been ordered to deposit pursuant to the provisions of paragraph (3) deposits, within the period specified under that paragraph, the whole amount so ordered or notifies the Director General of Customs of entering into a contract prescribed in paragraph (6), the Director General of Customs shall discontinue the verification procedures with respect to the goods that have caused the deposit to be ordered.

(12)When the verification procedures have been discontinued pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify this to a person who seeks to export the goods subject to the verification procedures and the applying patentholder, etc. who has filed an application for the verification procedures.

Subsection 2 Goods the Importation of Which Is Prohibited

(Goods the importation of which is prohibited)

Article 69-11.Goods set forth in the following shall not be imported:

(i)narcotic drugs, psychotropic substances, cannabis, opium, opium poppies, stimulants (including raw materials thereof as referred to in the Stimulant Drugs Control Act) and utensils for opium smoking; provided, however, that those imported by the Government or by a person authorized, under other laws and regulations, to import pursuant to the provisions thereof, are excluded;

(i)-2the designated drugs provided for in paragraph (15) of Article 2 (Definitions) of the Act for Ensuring the Quality, Efficacy and Safety of Drugs and Medical Devices (Act No. 145 of 1960) (excluding those imported for the purpose of using for medical care, etc. as provided for in Article 76-4 (Prohibition of manufacture, etc.) of that Act);

(ii)handguns, rifles, machine guns, cannons, and bullets thereof and parts of handguns; provided, however, that those imported by a person authorized, under other laws and regulations, to import pursuant to the provisions thereof, are excluded;

(iii)explosives (i.e., explosives provided for in Article 1 of the Criminal Regulations to Control Explosives (Ordinance No. 32 of the Administrative Council of 1884); excluding those set forth in items (ii) and (iv)); provided, however, that those imported by a person authorized, under other laws and regulations, to import pursuant to the provisions thereof, are excluded;

(iv)explosive powder (i.e., explosive powder provided for in paragraph (1) of Article 2 (Definitions) of the Explosives Control Act (Act No. 149 of 1950); excluding goods that fall under item (ii)); provided, however, that explosive powder imported by a person authorized, under other laws and regulations, to import pursuant to the provisions thereof, are excluded;

(v)specific substances provided for in paragraph (3) of Article 2 (Definitions, etc.) of the Act on the Prohibition of Chemical Weapons and the Control of Specific Chemicals (Act No. 65 of 1995); provided, however, that those imported by a person authorized, under international conventions or other laws and regulations, to import pursuant to the provisions thereof, are excluded;

(v)-2pathogens, etc. of Class One and Class Two as referred to respectively in paragraph (22) and paragraph (23) of Article 6 (Definitions, etc.) of the Act on the Prevention of Infections and Medical Care for Patients with Infections (Act No. 114 of 1998); provided, however, that those imported by a person authorized, under other laws and regulations, to import pursuant to the provisions thereof, are excluded;

(vi)forged, altered or counterfeit coins, bills, bank notes, revenue stamps or postal stamps, securities and cards (including vouchers with marks representing postage, other than postal stamps (the same applies in this item)) (excluding counterfeit revenue stamps imported with the authorization of the Minister of Finance under paragraph (2) of Article 1 of the Act on the Control of Counterfeiting of Stamps, etc. (Act No. 189 of 1947) and counterfeit postal stamps imported with the authorization of the Minister of Internal Affairs and Communications under paragraph (2) of Article 1 of the Act on the Control of the Counterfeiting of Postal Stamps etc. (Act No. 50 of 1972)) and the cards (including materials used in the production of such cards) that are created unlawfully for the payment of charges or fees or for the withdrawal of depositions and that contain electronic or magnetic records;

(vii)books, drawings, carvings or other articles that are detrimental to public security or that corrupt public morals (excluding those falling under the next item);

(viii)child pornography (i.e., child pornography referred to in paragraph (3) of Article 2 (Definitions) of the Act on the Regulation and Punishment of Activities Relating to Child Prostitution and Child Pornography, and the Protection of Children);

(ix)goods that infringe patent rights, utility model rights, design rights, trademark rights, copyrights, copyright neighboring rights, layout-design exploitation rights or breeder’s rights (in the case of goods that infringe design rights or trademark rights only, goods that fall under those set forth in the following items are excluded);

(ix)-2goods that infringe design rights or trademark rights (limited to goods sent from abroad to a person in Japan (in the case of goods that infringe design rights, a person who imports such goods as its business is excluded; and in the case of goods that infringe trademark rights, a person who produces, certificates or assigns goods as its business is excluded) and related to an act of having another person bring from a foreign country into Japan (i.e., an act through which a person in a foreign country has another person bring relevant goods into Japan from a foreign country, as provided for in item (i) of paragraph (2) of Article 2 (Definitions, etc.) of the Design Act or paragraph (7) of Article 2 (Definitions, etc.) of the Trademark Act (Act No. 127 of 1959)));

(x)goods that compose the acts set forth in items (i) to (iii), (x), (xvii) or (xviii) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act (excluding those acts as specified in items (i) to (vi), (viii) or (x) of paragraph (1) of Article 19 (Exclusion from application, etc.) of that Act for the category of unfair competitions as set forth respectively in items (i) to (iii), (x), (xvii) or (xviii) of paragraph (1) of Article 2 of that Act).

(2)The Director General of Customs may confiscate and dispose of goods that are set forth in items (i) to (vi) or (ix) to (x) of the preceding paragraph and are likely to be imported, or may order a person who seeks to import these goods to reship them.

(3)If the Director General of Customs has reasonable grounds to believe that there are, among goods that a person seeks to import pursuant to the provisions of this Chapter, goods that fall under those set forth in item (vii) or (viii) of paragraph (1), the Director General of Customs shall notify that fact to the person who seeks to import these goods.

(Verification procedures pertaining to goods the importation of which is prohibited)

Article 69-12.If the Director General of Customs considers that there are, among those goods that a person seeks to import in accordance with the provisions of this Chapter, goods that fall under those set forth in items (ix) to (x) of paragraph (1) of the preceding Article, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, initiate procedures for verifying whether these goods do or do not fall under those set forth in these items (hereinafter the procedures identified in this paragraph are referred to as “verification procedures” in this Subsection). In this case, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, notify a patentholder or other right holder concerned (i.e., a holder of a patent right, utility model right, design right, trademark right, copyright, copyright neighboring right, layout-design exploitation right, breeder’s right or right to seek an injunction against unfair competition (i.e., a person who may, pursuant to the provisions of paragraph (1) of Article 3 (Right to seek an injunction) of the Unfair Competition Prevention Act, seek suspension or prevention of infringement of business interests the infringement of which has been caused by the acts specified in item (x) of paragraph (1) of the preceding Article with respect to goods set forth in that item; hereinafter the same applies in this Subsection); hereinafter in this Article the same applies) and a person who seeks to import the goods of the fact that verification procedures are to be initiated for the goods and that the patentholder or other right holder and the importer may produce evidence and state their opinions as to whether they do or do not fall under those set forth in items (ix) to (x) of paragraph (1) of the preceding Article and other matters prescribed by Cabinet Order.

(2)When the Director General of Customs issues a notification prescribed in the preceding paragraph, the Director General of Customs shall notify a patentholder or other right holder associated with the goods at issue of the names and addresses of a person who seeks to import these goods and their consignor and shall also notify the person who seeks to import the goods of the name and address of the patentholder or other right holder concerned.

(3)If the Director General of Customs finds that the name or address of a manufacturer of goods subject to verification procedures is evident from a written import declaration filed with, or other documents submitted to the Director General of Customs in connection with importation of these goods under Article 67 (Export or import permission), from other documents submitted to the Director General of Customs in the verification procedures or from indications affixed to the goods, the Director General of Customs shall notify the patentholder or other right holder concerned of the name or address of the manufacturer simultaneously with the notification referred to in paragraph (1) or thereafter while the verification procedures are carried out.

(4)If a person who has been notified under paragraph (1) as provided for in that paragraph seeks to import goods and asserts that the goods subject to verification procedures (hereinafter referred to as “suspect goods” in this Article and Article 69-16 (Inspection of samples of suspect goods by applicants)) do not fall under those set forth in items (ix) to (x) of paragraph (1) of the preceding Article, the Director General of Customs may request that person to submit documents substantiating its assertion and other documents specified by Cabinet Order.

(5)The measures referred to in paragraph (2) of the preceding Article may not be taken by the Director General of Customs with respect to goods that are sought to be imported in accordance with the provisions of this Chapter unless these goods have undergone verification procedures.

(6)If the Director General of Customs has verified that the suspect goods either fall or do not fall under the goods set forth in items (ix) to (x) of paragraph (1) of the preceding Article, the Director General of Customs shall notify the patentholder or other right holder associated with these verified goods and the person who seeks to import these verified goods of the findings and the reason therefor; provided, however, that this does not apply if a notification prescribed in the next paragraph is issued.

(7)If the situation has fallen under any of the following items before the Director General of Customs notifies the relevant persons of the verification of suspect goods under the main clause of the preceding paragraph, the Director General of Customs notifies the patentholder or other right holder associated with the suspect goods of the situation and discontinues the verification procedures:

(i)if the suspect goods have been disposed of pursuant to the provisions of Article 34 (Disposal of foreign goods);

(ii)if the suspect goods have been destroyed pursuant to the provisions of the proviso to paragraph (1) of Article 45 (Liability for payment of customs duty, etc. of a person who has obtained permission) (including the cases where applied mutatis mutandis pursuant to Articles 36, 41-3, 61-4, 62-7 and 62-15);

(iii)if the suspect goods have been reshipped pursuant to the provisions of Article 75 (Reshipment of foreign goods);

(iv)in addition to the situations set forth in the preceding three items, if the suspect goods have ceased to be imported.

(8)A person who has been notified under paragraph (2) or (3) or an applicant provided for in paragraph (2) of Article 69-16 who has obtained the approval pursuant to the provisions of that paragraph shall not divulge any matters to have been notified or any other matters to have learned during the inspection (including inspection by disassembling; the same applies in Article 69-16) or handling, of a sample related to the application to any other person without reason, nor shall use such matters for any unjust purpose.

(Procedures, etc. for filing of an application related to goods the importation of which is prohibited)

Article 69-13.A holder of a patent right, utility model right, design right, trademark right, copyright, copyright neighboring right, breeder’s right or right to seek an injunction against unfair competition may, pursuant to the provisions of Cabinet Order, produce to any of the Directors General of Customs evidence necessary to demonstrate prima facie infringement with respect to goods that are found to infringe the patent right, utility model right, design right, trademark right, copyright, copyright neighboring right, breeder’s right or business interests of that holder, and may file with any of the Directors General of Customs an application for verification procedures to be initiated by any of the Directors General of Customs if these goods are likely to be imported in accordance with the provisions of this Chapter (hereinafter in this Article and in the next Article, the Director General of Customs with whom the application is filed is referred to as “the Director General of Customs with whom application is filed”). In this case, a holder of right to seek an injunction against unfair competition shall, pursuant to the provisions of the Ministry of Economy, Trade and Industry Order, seek from the Minister of that Ministry, if the goods are those set forth in item (x) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) (excluding those related to item (x) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act), the opinion with respect to the matters specified by that Order, which may stipulate, among other things, that the indication of goods, etc. provided for in item (i) of paragraph (1) of Article 2 of that Act and associated with that person be well known among consumers, or if the goods are those set forth in item (x) of paragraph (1) of Article 69-11 (limited to those related to item (x) of paragraph (1) of Article 2 of that Act), the certification with respect to the fact that the goods at issue are those generated through the acts of unauthorized use as provided for in item (x) of paragraph (1) of Article 2 of that Act and that a person who is likely to import the goods is not the person who was not, at the time when they were transferred to that person, aware that they were generated through the acts of unauthorized use and was not grossly negligent in failing to know that they were so generated, and shall submit the details of the opinion or certification in writing to the Director General of Customs with whom application is filed.

(2)When the application prescribed in the preceding paragraph has been filed, if it is found that the evidence is not sufficient to demonstrate prima facie infringement related to that application, the Director General of Customs with whom application is filed may elect not to accept that application.

(3)When the application prescribed in paragraph (1) has been filed, if the Director General of Customs with whom application is filed has accepted the application, the Director General of Customs shall notify this fact and the effective period of the application (i.e., the period during which verification procedures is, based on that application, to be carried out each time goods related to the application are found among those goods likely to be imported during the period in accordance with the provisions of this Chapter) to a person who has filed the application and if the Director General of Customs with whom application is filed has not accepted the application pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify that person of this fact and the reason therefor.

(4)When the Director General of Customs has accepted the application prescribed in paragraph (1) or such an application has been accepted by any other Director General of Customs, if verification procedures has been initiated for goods that relate to the application, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, provide a person who has filed the application or a person who seeks to import the goods with an opportunity to inspect the goods upon application of the person concerned; provided, however, that this does not apply if the verification procedures have been discontinued pursuant to the provisions of paragraph (7) of the preceding Article.

(Seeking opinions of technical advisers when an application for import suspension is filed)

Article 69-14.When an application prescribed in paragraph (1) of the preceding Article has been filed, the Director General of Customs with whom application is filed may, if it is found necessary to do so, designate persons with academic background and experience in intellectual property rights, having no special interests with the parties involved in the case that relates to the application, to serve as technical advisers and may, pursuant to the provisions of Cabinet Order, seek the opinions of the technical advisers as to whether the evidence produced pursuant to the provisions of that paragraph is sufficient to demonstrate prima facie infringement under that application; provided, however, that this does not apply to the matters with respect to which the opinion or certification of the Minister of Economy, Trade and Industry is to be sought pursuant to the provisions of the second sentence of that paragraph.

(Deposit, etc. pertaining to application for import suspension)

Article 69-15.When the Director General of Customs has accepted the application prescribed in paragraph (1) of Article 69-13 (Procedures, etc. for filing of an application related to goods the importation of which is prohibited) or such an application has been accepted by any other Director General of Customs, if it is found necessary in order to ensure compensation for damages that a person who seeks to import goods that relate to the application is likely to incur from being unable to import until completion of the verification procedures for these goods, the Director General of Customs may order a person who has filed the application (hereinafter in this Article referred to as “applicant”) to deposit, within a specified period, an amount of money deemed to be sufficient to cover the damages with the deposit office designated by the Director General of Customs.

(2)If the amount of the monetary deposit provided pursuant to the provisions of the preceding paragraph is found insufficient to compensate for the damages provided for in that paragraph, the Director General of Customs may order an applicant to deposit, within a specified period, an amount of money deemed to be equivalent to the shortfall.

(3)The monetary deposit to be provided pursuant to the provisions of the preceding two paragraphs may be replaced by National Government Bonds, Local Government Bonds or other securities that the Director General of Customs finds to be secure (other securities include book-entry transfer bonds as provided for in paragraph (1) of Article 278 (Deposit of transferred bonds) of the Act on Book-Entry Transfer of Corporate Bonds, Shares, etc.; the same applies in this Article and in Article 69-20 (Request for discontinuance of verification procedures pertaining to goods the importation of which is prohibited, etc.)).

(5)If, pursuant to the provisions of Cabinet Order, an applicant has entered into a contract that provides that the amount of money necessary to compensate for the damages provided for in paragraph (1) is to be paid on the applicant’s behalf and has notified the Director General of Customs of that fact within the period specified in paragraph (1) or (2), the applicant may not deposit the whole or part of the amount referred to in paragraph (1) or (2) while the contract is effective.

(6)The importer of goods referred to in paragraph (1) has the right, with respect to the claim for compensation for damages against an applicant as provided for in that paragraph, to be paid, in advance of any other creditors, from the monetary deposit provided pursuant to the provisions of paragraphs (1) and (2) (the monetary deposit includes securities prescribed in paragraph (3); the same applies in paragraphs (8) to (10)).

(7)Necessary matters concerning the exercise of right referred to in the preceding paragraph are prescribed by Cabinet Order.

(8)An applicant who has provided the monetary deposit pursuant to the provisions of paragraph (1) or (2) may recover the deposit if any of the situations as set forth in the following items occurs:

(i)if the applicant has received a notification prescribed in the main clause of paragraph (6) of Article 69-12 (Verification procedures pertaining to goods the importation of which is prohibited), stating that the goods that have caused the deposit to be provided fall under those set forth in items (ix) to (x) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited);

(ii)if the applicant has received a notification prescribed in paragraph (7) of Article 69-12 with respect to goods that have caused the deposit to be provided;

(iii)if it has been proved to, and confirmed by the Director General of Customs that the importer of the goods referred to in paragraph (1) has consented to the recovery of the monetary deposit, that the right to claim for compensation for damages as provided for in that paragraph has been extinguished by prescription or otherwise that the deposit for compensation for damages as provided for in that paragraph is no longer necessary;

(iv)if the applicant has entered into a contract referred to in paragraph (5) and the contract has been approved by the Director General of Customs pursuant to the provisions of Cabinet Order;

(v)if, pursuant to the provisions of Cabinet Order, it has been approved by the Director General of Customs to provide another deposit, in lieu of the deposit actually provided, on the grounds of redemption of the deposited securities or on other grounds.

(9)Necessary matters concerning recovery of the monetary deposit provided for in the preceding paragraph are specified by the Ministry of Justice Order and the Ministry of Finance Order.

(10)If a person who has been ordered to deposit pursuant to the provisions of paragraph (1) or (2) fails to deposit, within the period specified pursuant to the provisions of these paragraphs, the whole amount of money and also fails to issue a notification of entering into a contract prescribed in paragraph (5), the Director General of Customs may discontinue verification procedures with respect to goods that have caused the deposit to be provided.

(11)If the verification procedures have been discontinued pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify this to a person who has filed an application related to the verification procedures and a person who seeks to import goods subject to the verification procedures.

(Inspection of samples of suspect goods by applicants)

Article 69-16.A holder of a patent right, utility model right, design right, trademark right, copyright, copyright neighboring right, breeder’s right or right to seek an injunction against unfair competition, who has had an application prescribed in paragraph (1) of Article 69-13 (Procedures, etc. for filing of an application related to goods the importation of which is prohibited) accepted may file with the Director General of Customs an application for approval for inspection of a sample of suspect goods that are subject to the verification procedures, provided that the application for approval is filed while the verification procedures for these goods are carried out. In this case, the Director General of Customs who has received the application shall notify this to a person who seeks to import the suspect goods.

(2)If all of the requirements set forth in the following items are met, the Director General of Customs shall give, in response to an application filed under the preceding paragraph, approval for inspection of the sample of suspect goods that are subject to the verification procedures to a person who has filed the application (including a person who has been entrusted; hereinafter in this Article (excluding paragraph (5)) referred to as “applicant”); provided, however, that this does not apply if it is evident that the goods subject to that application do or do not fall under those set forth in item (ix) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) (goods that infringe a layout-design exploitation right are excluded; the same applies in this paragraph and paragraph (5)) or item (ix)-2 or (x) of paragraph (1) of that Article, or otherwise if the Director General of Customs finds that the approval is not necessary to be given:

(i)that the inspection of sample is found necessary in order to produce evidence or state opinions to the Director General of Customs with respect to the fact that the suspect goods from which the sample has been taken fall under those as set forth in item (ix) of paragraph (1) of Article 69-11 or those set forth item (ix)-2 or (x) of that paragraph;

(ii)that it is found that the interests of a person who seeks to import suspect goods from which the sample has been taken are not likely to be unjustly infringed;

(iii)that, in addition to what is set forth in the preceding items, it is found that the sample is not likely to be used for unjust purposes;

(iv)that the applicant is found to have the ability and financial resources necessary to properly carry out transport, storage, inspection or other handling, of the sample.

(3)If the Director General of Customs approves inspection of a sample by an applicant pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify this to the applicant (excluding a person who has been entrusted) and the person who seeks to import the suspect goods from which the sample has been taken.

(4)If the approval is given by the Director General of Customs pursuant to the provisions of paragraph (2), the expenses necessary for transport, storage or inspection of the sample and other expenses shall be borne by an applicant to the extent necessary for inspection of the sample.

(5)The preceding Article (excluding paragraph (11)) applies mutatis mutandis if the Director General of Customs gives approval pursuant to the provisions of paragraph (2). In this case, the terms reproduced in the middle columns of the following table, which are used in the paragraphs of the left columns are replaced respectively with the terms shown in the right columns:

Provisions	Terms or phrases to be replaced	Terms or phrases to replace
Paragraph (1) of Article 69-15	from being unable to import until completion of the verification procedures for the goods,	when the suspect goods from which the sample has been taken have not been verified to fall under the goods set forth in item (ix) of paragraph (1) of Article 69-11 or item (ix)-2 or (x) of that paragraph,
Paragraph (1) of Article 69-15	a person who has filed the application (hereinafter in this Article referred to as “applicant”	a person who has filed an application for approval (hereinafter in this Article referred to as “applicant”
Paragraphs (2), (5), (6) and (8) of Article 69-15	applicant	applicant
Paragraph (10) of Article 69-15	discontinue verification procedures	elect not to give the approval referred to in paragraph (2) of the next Article

(6)If inspection of a sample is conducted by an applicant who has been given approval pursuant to the provisions of paragraph (2), customs officials shall attend the inspection. In this case, a person who seeks to import the suspect goods from which the sample have been taken may, upon request to the Director General of Customs, attend the inspection.

(7)In addition to what is provided for in the preceding paragraphs, necessary matters concerning procedures required for application referred to in paragraph (1), expenses to be borne under paragraph (4) and other matters concerning inspection of a sample by an applicant are specified by Cabinet Order.

(Request for hearing opinions pertaining to goods the importation of which is prohibited, etc.)

Article 69-17.If verification procedures have been initiated to determine whether goods do or do not fall under those that infringe a patent right, utility model right or design right or those that compose the acts set forth in item (x) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act (excluding the acts provided for in item (viii) of paragraph (1) of Article 19 (Exclusion from application, etc.) of that Act; hereinafter the same applies in this paragraph and paragraph (9)), a patentholder or other right holder associated with these goods (i.e., a holder of patent right, utility model right, design right or right to seek an injunction against unfair competition (limited to a person related to goods that compose the acts set forth in item (x) of paragraph (1) of Article 2 of that Act; hereinafter the same applies in this paragraph, paragraph (9) and paragraph (1) of Article 69-20 (Request for discontinuance of verification procedures pertaining to goods the importation of which is prohibited, etc.); hereinafter the same applies in this Article) or an importer (i.e., a person who seeks to import goods subject to the verification procedures; hereinafter the same applies in this Article) may, pursuant to the provisions of Cabinet Order, request the Director General of Customs to hear, when the verification procedures have been initiated to determine whether the goods subject to the verification procedures do or do not fall under those that infringe the patent right, utility model right or design right of the patentholder or other right holder (other than a holder of right to seek an injunction against unfair competition), the opinion of the Commissioner of the Patent Office with respect to the technical scope, etc. (i.e., the technical scope provided for in paragraph (1) of Article 70 (Technical scope of patented invention) of the Patent Act (including the cases where applied mutatis mutandis pursuant to Article 26 (Mutatis mutandis application of the Patent Act) of the Utility Model Act), or the scope provided for in paragraph (1) of Article 25 (Scope of registered design, etc.) of the Design Act; the same applies in paragraph (9) and Article 69-19 (Seeking opinions of technical advisers in verification procedures pertaining to goods the importation of which is prohibited)), or when the verification procedures have been initiated to determine whether the goods subject to the verification procedures do or do not fall under those that compose the acts set forth in item (x) of paragraph (1) of Article 2 of the Unfair Competition Prevention Act and related to the patentholder or other right holder (only a holder of right to seek an injunction against unfair competition), the opinion of the Minister of Economy, Trade and Industry as to whether the goods subject to the verification procedures do or do not fall under those that compose the acts set forth in that item, provided that the request is made within the period during which the verification procedures are carried out, but before the day on which ten days (public holidays of the administrative organs are not included) elapse from the day on which the patentholder or other right holder receives the notification prescribed in paragraph (1) of Article 69-12 (Verification procedures pertaining to goods the importation of which is prohibited) (hereinafter in this paragraph and paragraph (2) of Article 69-20 referred to as “the date of notification”) (in paragraphs (1) and (2) of Article 69-20, the day on which ten days elapse is referred to as “the day on which ten days elapse”) (if the Director General of Customs, before expiry of the period of ten days, finds it necessary to extend the period in consideration of the progress made with respect to the verification procedures or other circumstances and notifies the patentholder or other right holder and the importer of the finding, the period may be extended until the day on which twenty days (public holidays of the administrative organs are not included) elapse from the date of notification (in paragraph (1) of Article 69-20, the day on which twenty days elapse from the date of notification is referred to as “the day on which twenty days elapse”)).

(2)If a request prescribed in the preceding paragraph has been made, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, seek the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office; provided, however, that this does not apply if the Director General of Customs finds it evident that the goods subject to the request as prescribed in that paragraph do or do not fall under those set forth in items (ix) to (x) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) or otherwise if the Director General of Customs finds it unnecessary to seek the opinion of the Minister or the Commissioner.

(3)When a request prescribed in paragraph (1) has been made, if the Director General of Customs has not sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the proviso to the preceding paragraph, the Director General of Customs shall notify this and the reason therefor to the patentholder or other right holder or importer, who has made the request prescribed in paragraph (1).

(4)When the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office has been sought an opinion by the Director General of Customs pursuant to the provisions of the main clause of paragraph (2), the Minister or Commissioner shall provide the opinion in writing within thirty days from the day on which the opinion is sought.

(5)When the Director General of Customs has sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the main clause of paragraph (2), the Director General of Customs shall notify this to the patentholder or other right holder and the importer concerned.

(6)When the opinion prescribed in paragraph (4) has been provided, the Director General of Customs shall notify this and the details of the opinion to the patentholder or other right holder and the importer concerned.

(7)When the Director General of Customs has sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the main clause of paragraph (2), the Director General of Customs, before the opinion prescribed in paragraph (4) is provided, shall not determine that, if a person who requests the opinion under paragraph (1) is a patentholder or other right holder, the goods at issue do not fall under those set forth in items (ix) to (x) of paragraph (1) of Article 69-11, or if a person who requests the opinion under paragraph (1) is an importer, the goods at issue fall under those set forth in items (ix) to (x) of paragraph (1) of that Article.

(8)When the Director General of Customs has sought the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office pursuant to the provisions of the main clause of paragraph (2), if, before the opinion prescribed in paragraph (4) is provided, the Director General of Customs has determined that, when a person who requests the opinion under paragraph (1) is a patentholder or other right holder, the goods at issue fall under those set forth in items (ix) to (x) of paragraph (1) of Article 69-11 or that, when a person who requests the opinion under paragraph (1) is an importer, the goods at issue do not fall under those set forth in items (ix) to (x) of paragraph (1) of that Article, or if the Director General of Customs has discontinued verification procedures for the goods at issue pursuant to the provisions of paragraph (7) of Article 69-12 or paragraph (10) of Article 69-15 (Deposit, etc. pertaining to application for import suspension), the Director General of Customs shall notify the Minister or the Commissioner of that determination or discontinuance. In this case, the Minister or the Commissioner is not required to provide the opinion prescribed in paragraph (4).

(9)In the verification procedures for determining whether goods do or do not fall under those that infringe a patent right, utility model right or design right or fall under those that compose the acts set forth in item (x) of paragraph (1) of Article 2 of the Unfair Competition Prevention Act, if it is found necessary for the purpose of verification prescribed in paragraph (1) of Article 69-12, the Director General of Customs may seek, pursuant to the provisions of Cabinet Order, when the verification procedures have been initiated to determine whether the goods subject to the verification procedures do or do not fall under those that infringe a patent right, utility model right or design right, the opinion of the Commissioner of the Patent Office with respect to the technical scope, etc. as to whether the goods subject to the verification procedures do or do not fall under those that infringe the patent right, utility model right or design right of the patentholder or other right holder concerned (other than a holder of right to seek an injunction against unfair competition), or when the verification procedures have been initiated to determine whether goods subject to the verification procedures do or do not fall under those that compose the acts set forth in that item, the opinion of the Minister of Economy, Trade and Industry as to whether the goods subject to the verification procedures do or do not fall under those that compose the acts set forth in that item and related to the patentholder or other right holder (only a holder of right to seek an injunction against unfair competition).

(10)Paragraphs (4) to (6) of this Article and paragraph (5) of the next Article apply mutatis mutandis when an opinion is sought pursuant to the provisions of the preceding paragraph. In this case, necessary technical replacement of the terms is specified by Cabinet Order.

(Seeking opinions of the Minister of Agriculture, Forestry and Fisheries, etc. in verification procedures pertaining to goods the importation of which is prohibited)

Article 69-18.In verification procedures for determining whether goods do or do not fall under those that infringe a breeder’s right or those set forth in item (x) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) (excluding those related to item (x) of paragraph (1) of Article 2 (Definitions) of the Unfair Competition Prevention Act; the same applies in this paragraph and paragraph (5)), if it is found necessary for the purpose of verification prescribed in paragraph (1) of Article 69-12 (Verification procedures pertaining to goods the importation of which is prohibited), the Director General of Customs may, pursuant to the provisions of Cabinet Order, seek, for reference purposes, the opinion of the Minister of Agriculture, Forestry and Fisheries in the case of verification procedures to determine whether the goods at issue do or do not fall under those that infringe a breeder’s right or the opinion of the Minister of Economy, Trade and Industry in the case of verification procedures to determine whether the goods at issue do or do not fall under those set forth in item (x) of paragraph (1) of Article 69-11.

(3)When the Director General of Customs has sought the opinion pursuant to the provisions of paragraph (1), the Director General of Customs shall notify this to a holder of breeder’s right or a holder of right to seek an injunction against unfair competition, involved in the verification procedures and to a person who seeks to import goods subject to the verification procedures.

(4)When the opinion prescribed in paragraph (2) has been provided, the Director General of Customs shall notify this and the details of the opinion to a holder of breeder’s right or a holder of right to seek an injunction against unfair competition, referred to in the preceding paragraph and to a person who seeks to import goods subject to the verification procedures.

(5)When the Director General of Customs has sought the opinion of the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry pursuant to the provisions of paragraph (1), if the Director General of Customs, before the opinion prescribed in paragraph (2) is provided, has determined that the goods at issue do or do not fall under those that infringe a breeder’s right or those set forth in item (x) of paragraph (1) of Article 69-11 or if the Director General of Customs has discontinued verification procedures for the goods at issue pursuant to the provisions of paragraph (7) of Article 69-12 or paragraph (10) of Article 69-15 (Deposit, etc. pertaining to application for import suspension), the Director General of Customs shall notify the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry of that determination or discontinuance. In this case, the Minister concerned is not required to provide the opinion prescribed in paragraph (2).

(Seeking opinions of technical advisers in verification procedures pertaining to goods the importation of which is prohibited)

Article 69-19.In verification procedures for determining whether goods do or do not fall under those set forth in item (ix) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) (excluding goods that infringe a breeder’s right) or under those set forth in item (ix)-2 of that paragraph, if it is found necessary for the purpose of verification prescribed in paragraph (1) of Article 69-12 (Verification procedures pertaining to goods the importation of which is prohibited), the Director General of Customs may designate persons with academic background and experience in intellectual property rights, having no special interests with the parties involved in the cases subject to the verification procedures, to serve as technical advisers, and may, pursuant to the provisions of Cabinet Order, seek, for reference purposes, opinions of the technical advisers for the verification; provided, however, that this does not apply to the technical scope, etc.

(Request for discontinuance of verification procedures pertaining to goods the importation of which is prohibited, etc.)

Article 69-20.If verification procedures have been initiated for goods related to the application prescribed in paragraph (1) of Article 69-13 (Procedures, etc. for filing of an application related to goods the importation of which is prohibited) that has been filed by a holder of a patent right, utility model right, design right or right to seek an injunction against unfair competition (hereinafter in this Article referred to as “applying patentholder, etc.”) and has been accepted, a person who seeks to import the goods may, pursuant to the provisions of Cabinet Order, request the Director General of Customs to discontinue the verification procedures after the day as specified in each of the following items for the category of cases as set forth respectively therein, provided that the request is made while the verification procedures are carried out:

(i)when it is notified that the period until the day on which ten days elapse is extended pursuant to the provisions of paragraph (1) of Article 69-17 (Request for hearing opinions pertaining to goods the importation of which is prohibited, etc.): the day on which twenty days elapse (if a notification stating that the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office has been sought pursuant to the provisions of paragraph (5) of Article 69-17 (including the cases where applied mutatis mutandis pursuant to paragraph (10) of Article 69-17; the same applies in the next item) has been received, then the day on which twenty days elapse or the day on which ten days elapse from the date of receipt of the notification prescribed in paragraph (6) of Article 69-17, related to seeking of the opinion (including the cases where applied mutatis mutandis pursuant to paragraph (10) of Article 69-17; the same applies in the next item), whichever comes later);

(ii)(ii) in the case other than the case set forth in the preceding item: the day on which ten days elapse (or, if a notification stating that the opinion of the Minister of Economy, Trade and Industry or the Commissioner of the Patent Office has been sought pursuant to the provisions of paragraph (5) of Article 69-17 has been received, the day on which ten days elapse or the day on which ten days elapse from the date of receipt of the notification related to seeking of the opinion, as prescribed in paragraph (6) of Article 69-17, whichever comes later).

(2)If the Director General of Customs has initiated verification procedures with respect to goods that relate to the application of the applying patentholder, etc., the Director General of Customs shall, before the day on which ten days elapse, notify a person who seeks to import the goods of the date of notification.

(3)If discontinuance of verification procedures has been requested pursuant to the provisions of paragraph (1), the Director General of Customs shall notify this to the applying patentholder, etc. who has filed an application related to the verification procedures and shall order the person who has so requested (hereinafter in this Article referred to as “requester”) to deposit, within a specified period, an amount of money deemed to be sufficient to ensure compensation for damages that the applying patentholder, etc. is likely incur from import of the goods subject to the verification procedures with the designated deposit office.

(4)The monetary deposit that is provided pursuant to the provisions of the preceding paragraph may be replaced by National Government Bonds, Local Government Bonds or other securities that the Director General of Customs finds to be secure.

(6)If, pursuant to the provisions of Cabinet Order, the requester has entered into a contract that provides that the amount necessary to compensate for damages as provided for in paragraph (3) is paid on the requester’s behalf and has notified this to the Director General of Customs within the period specified under that paragraph, then the requester may not deposit the whole or part of the amount referred to in that paragraph while the contract is effective.

(7)The applying patentholder, etc. referred to in paragraph (3) has the right, with respect to the right to claim for compensation for damages against the requester as provided for in that paragraph, to be paid in advance of any other creditors, from the monetary deposit provided pursuant to the provisions of that paragraph (the deposit includes securities prescribed in paragraph (4); the same applies in paragraphs (9) to (11)).

(8)Necessary matters concerning the exercise of right referred to in the preceding paragraph are specified by Cabinet Order.

(9)A requester who has provided monetary deposit pursuant to the provisions of paragraph (3) may recover the deposit if the situation falls under any of the cases as set forth in the following items:

(i)if it has been proved to, and confirmed by the Director General of Customs that the applying patentholder, etc. referred to in paragraph (12) has consented to the recovery of monetary deposit, that the right to claim for compensation for damages as provided for in paragraph (3) has been extinguished by prescription or otherwise that the deposit for compensation for damages provided for in paragraph (3) is no longer necessary;

(ii)if the contract referred to in paragraph (6) has been entered into and has been approved by the Director General of Customs pursuant to the provisions of Cabinet Order;

(iii)if, pursuant to the provisions of Cabinet Order, it has been approved by the Director General of Customs to provide another deposit, in lieu of the deposit actually provided, on the grounds of redemption of the deposited securities or on other grounds;

(iv)in addition to what is set forth in the preceding three items, if the applying patentholder, etc. referred to in paragraph (12) fails to institute, within thirty days from the date on which the applying patentholder, etc. receives the notification prescribed in that paragraph, any judicial action for claiming for compensation for damages as provided for in paragraph (3).

(10)Necessary matters concerning recovery of monetary deposit as prescribed in the preceding paragraph are specified by the Ministry of Justice Order and the Ministry of Finance Order.

(11)When a person who has been ordered to deposit pursuant to the provisions of paragraph (3) deposits, within the period specified under that paragraph, the whole amount so ordered or issues to the Director General of Customs a notification of entering into a contract prescribed in paragraph (6), the Director General of Customs shall discontinue verification procedures for the goods that have caused the deposit to be provided.

(12)When the Director General of Customs has discontinued verification procedures pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify this to a person who seeks to import goods subject to the verification procedures and the applying patentholder, etc. who has made an application related to the verification procedures.

Subsection 3 Technical Advisers

Article 69-21.Technical advisers whose opinions are sought by the Director General of Customs pursuant to the provisions of Article 69-5 (Seeking opinions of technical advisers when an application for export suspension is filed), Article 69-9 (Seeking opinions of technical advisers in verification procedures pertaining to goods the exportation of which is prohibited), Article 69-14 (Seeking opinions of technical advisers when an application for import suspension is filed) and Article 69-19 (Seeking opinions of technical advisers in verification procedures pertaining to goods the importation of which is prohibited), shall not divulge any secrets that they have learned in connection with the cases for which their opinions are sought. The same applies after their resignation.

(2)Necessary matters concerning technical advisers, including designation to technical advisers, are specified by Cabinet Order.

Section 5 Export or Import Certification, etc.

(Certification or confirmation)

Article 70.With respect to goods the exportation or importation of which, pursuant to the provisions of other laws and regulations, is subject to permission, approval or other dispositions of administrative organs, or the like (hereinafter in this paragraph referred to as “permission, approval, etc.”), it shall be certified to the customs at the time of export or import declaration that such permission, approval, etc. have been obtained.

(2)With respect to goods the exportation or importation of which, pursuant to the provisions of other laws and regulations, requires completion of inspection or fulfillment of conditions, such completion or fulfillment prescribed by these laws and regulations shall be certified to, and confirmed by the customs at the time of inspection referred to in Article 67 (Export or import permission) or otherwise at the time of customs examination of export or import declaration.

(3)Export or import permission is not given unless the certification referred to in paragraph (1) or the confirmation referred to in the preceding paragraph is made with respect to goods concerned.

(Importation of goods bearing false indication of origin, etc.)

Article 71.No import permission is given to any foreign goods if they directly or indirectly bear any false or deceptive indication of origin.

(2)With respect to foreign goods referred to in the preceding paragraph, the Director General of Customs shall immediately notify a person who has filed an import declaration that they bear false or deceptive indication for their origin and shall have that person erase or correct the indication or reship these goods, according to the person’s choice, within a specified period.

Section 6 Import Permission and Withdrawal of Imported Goods, etc.

(Payment of customs duty, etc. and import permission)

Article 72.With respect to foreign goods for which customs duty is to be paid, except when specially declared goods are imported (excluding when security is not provided in the situation where provision of security is ordered pursuant to the provisions of paragraph (1) of Article 7-8 (Provision of security)) or when time limit for payment of customs duty is extended pursuant to the provisions of paragraph (1) or (2) of Article 9-2 (Extension of time limit for payment), import permission is given only after customs duty (excluding additional duty for deficient declaration and heavy additional duty referred to in paragraphs (1), (3) and (4) of Article 12-4 (Heavy additional duty) (with respect to paragraph (4), limited to the provisions concerning heavy additional duty referred to in paragraph (1) of that Article)) is paid (or, if payment of customs duty is entrusted pursuant to the provisions of paragraph (1) of Article 9-5 (Entrustment of payment to an entrusted person), after an entrusted person accepts the entrustment; if monetary security or proceeds of public auction of security other than monetary security are allocated to customs duty pursuant the provisions of paragraph (2) of Article 10 (Allocation or collection when security has been provided), after the required procedures are completed; and if provision of security is ordered pursuant to the provisions of paragraph (10) of Article 7 (Countervailing duty) of the Customs Tariff Act or item (ii) of paragraph (9) or paragraph (18) of Article 8 (Anti-dumping duty) of that Act, after the security is provided and customs duty is paid at the rate prescribed in Appended Table of that Act). The same applies to payment of internal consumption tax and local consumption tax levied on foreign goods (excluding additional tax for deficient declaration and heavy additional tax to be imposed in lieu of the additional tax for deficient declaration), except when time limit for payment is extended or in other cases as may be prescribed by Cabinet Order.

(Withdrawal of goods prior to import permission)

Article 73.A person who seeks to withdraw foreign goods (excluding specially declared goods) after import declaration, but prior to import permission shall obtain approval of the Director General of Customs after having provided security in an amount equivalent to that of customs duty chargeable (excluding the amount equivalent to that of additional duty for deficient declaration and of heavy additional duty referred to in paragraphs (1), (3) and (4) of Article 12-4 (Heavy additional duty) (with respect to paragraph (4), limited to the provisions concerning heavy additional duty referred to in paragraph (1) of that Article)).

(2)If import permission cannot be given (excluding the case prescribed in the preceding Article), the Director General of Customs shall not give the approval referred to in the preceding paragraph.

(3)Foreign goods for which the approval referred to in paragraph (1) has been given are deemed to be domestic goods for the purpose of application of this Act, except when Article 4 (Timing of determination for duty assessment of dutiable items), Article 5 (Applicable laws and regulations), the preceding Article, Article 105 (Authority of customs officials) and Article 106 (Authority of the Director General of Customs in special cases) are applicable.

(Goods the exportation of which is deemed to be permitted)

Article 73-2.For the purpose of application of this Act, postal items the notification of which has been issued pursuant to the provisions of paragraph (5) of Article 76 (Simplified export or import procedures for postal items) (limited to those to be exported) are deemed to be goods the exportation of which is permitted.

(Goods the importation of which is deemed to be permitted)

Article 74.For the purpose of application of this Act, the following goods are deemed to be goods the importation of which is permitted: foreign postal items delivered by Japan Post Co., Ltd. (excluding those prescribed by Cabinet Order) or foreign correspondence delivered by a person who dispatches postal correspondence in the case falling under the cases set forth in the items of Article 3 (Exclusion from application of the Postal Act) of the Act on Correspondence Delivery by Private Business Operators, foreign goods for which customs duty has been collected pursuant to the provisions of paragraph (1) of Article 62-6 (Collection of customs duty on foreign goods that remain in a customs exhibition site after expiry of period of permission), foreign goods confiscated pursuant to the provisions of paragraph (2) of Article 69-2 (Goods the exportation of which is prohibited), paragraph (2) of Article 69-11 (Goods the importation of which is prohibited) or paragraph (1) of Article 118 (Confiscation), foreign goods that were offered for public auction or for sale by negotiated contract and have been purchased by a purchaser pursuant to the provisions of paragraphs (1) to (3) of Article 84 (Public auction or sale, etc. of goods kept in custody) (including the cases where applied mutatis mutandis pursuant to Article 88 (Mutatis mutandis application of provisions on custody) and paragraph (3) of Article 133 (Handling of retained items, etc.)) or paragraph (2) of Article 133, foreign goods that have vested in the national treasury pursuant to the provisions of paragraph (3) of Article 134 (Return, etc. of retained items, etc.), foreign goods offered pursuant to the provisions of paragraph (1) of Article 146 (Disposition of administrative notification, etc. by the Director General of Customs), foreign goods sold, confiscated or vested in the national treasury pursuant to the provisions of the Code of Criminal Procedure, foreign goods sold or vested in the national treasury pursuant to the provisions of the Firearms and Swords Possessive Control Act (Act No. 6 of 1958) or such other similar foreign goods as may be prescribed by Cabinet Order.

Section 7 Reshipment of Foreign Goods

Article 75.The following provisions apply mutatis mutandis to reshipment of foreign goods from Japan to a foreign country (excluding foreign goods temporarily landed (excluding those subject to permission prescribed in paragraph (1) of Article 48 (Export permission, etc.) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949); the same applies in paragraphs (1) and (2) of Article 108-4 and item (i) of paragraph (1) of Article 111)): Article 67 (Export or import permission), paragraphs (1) and (2) of Article 67-2 (Procedures for export or import declaration), paragraph (1) of Article 67-3 (excluding the second sentence of paragraph (1) and item (iii)) (Special provisions for export declaration), Articles 68 to 69-10 (Documents to be submitted at the time of export or import declaration; Delegation of authority for inspection of goods; Place for inspection of goods; Goods the exportation of which is prohibited; Verification procedures pertaining to goods the exportation of which is prohibited; Procedures, etc. for filing of an application related to goods the exportation of which is prohibited; Seeking opinions of technical advisers when application for export suspension is filed; Deposit, etc. pertaining to application for export suspension; Request for hearing opinions pertaining to goods the exportation of which is prohibited, etc.; Seeking opinions of the Minister of Agriculture, Forestry and Fisheries, etc. in verification procedures pertaining to goods the exportation of which is prohibited; Seeking opinions of technical advisers in verification procedures pertaining to goods the exportation of which is prohibited; Request for discontinuance of verification procedures pertaining to goods the exportation of which is prohibited) and Article 70 (Certification or confirmation). In this case, the term “goods” in paragraph (1) of Article 69-2 is deemed to be replaced with “goods (excluding those ordered to be reshipped pursuant to the provisions of paragraph (2) of Article 69-11)” and the term “goods” in items (iii) and (iv) of that paragraph is deemed to be replaced with “goods (excluding those reshipped pursuant to the provisions of other laws and regulations by a person who is permitted to reship pursuant to the provisions of other laws and regulations)”.

Section 8 Special Rules Concerning Postal Items, etc.

(Simplified export or import procedures for postal items)

Article 76.With respect to postal items (excluding those the value of which exceeds 200,000 yen (other than gifts and other items prescribed by Cabinet Order) (if they are imported goods, the value to be taken as a basis for duty assessment) and those pertaining to the case prescribed by Cabinet Order, as referred to in paragraph (3); hereinafter the same applies in this paragraph, Article 94 and item (xiv) of Article 114-2), the following provisions do not apply: Articles 67 to 69 (Export or import permission; Procedures for export or import declaration; Special provisions for export declaration; Revocation of export permission; Notification of loss, etc. of special export goods; Requirements for approval; Improvement measures relating to a rule, etc.; Keeping of books, etc. by an authorized exporter; Notification of discontinuance of application of special provisions for export declaration; Invalidation of approval; Revocation of approval; Mutatis mutandis application of provisions on succession of permission; Authorization of manufacturers; Improvement measures relating to a rule, etc.; Notification of discontinuance of authorization of an authorized manufacturer; Invalidation of authorization; Revocation of authorization; Mutatis mutandis application of provisions on succession of permission; Special provisions for import declaration; Documents to be submitted at the time of export or import declaration; Delegation of authority for inspection of goods; Place for inspection of goods) and Articles 70 to 73 (Certification or confirmation; Importation of goods bearing false indication of origin, etc.; Payment of customs duty, etc. and import permission; Withdrawal of goods prior to import permission), and when applying the preceding Article, the term “(excluding foreign goods temporarily landed (excluding those subject to permission prescribed in paragraph (1) of Article 48 (Export permission, etc.) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949); the same applies in paragraphs (1) and (2) of Article 108-4 and item (i) of paragraph (1) of Article 111))” in the preceding Article is deemed to be replaced with “(limited to those subject to permission prescribed in paragraph (1) of Article 48 (Export permission, etc.) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949))”; provided, however, that the Director General of Customs, pursuant to the provisions of Cabinet Order, is to have customs officials conduct necessary inspection of postal items that are exported or imported (other than correspondence contained therein).

(2)Customs officials, when conducting the inspection referred to in the proviso to the preceding paragraph, shall not violate privacy of personal correspondence.

(3)When Japan Post Co., Ltd. receives postal items that are exported or imported (excluding postal items containing correspondence only), it shall present the postal items to the Director General of Customs unless a person who seeks to export or import these postal items has notified that the person makes a declaration referred to in Article 67 for the postal items or in other cases as may be prescribed by Cabinet Order.

(4)Article 70 applies mutatis mutandis to postal items subject to inspection pursuant to the provisions of the proviso to paragraph (1). In this case, the terms “export or import declaration” in paragraph (1) of that Article and “inspection referred to in Article 67 (Export or import permission) or otherwise at the time of customs examination of export or import declaration” in paragraph (2) of Article 70 are respectively deemed to be replaced with “inspection referred to in the proviso to paragraph (1) of Article 76 or otherwise at the time of customs examination of postal items,” and the term “No export or import permission is given” in paragraph (3) of Article 70 is deemed to be replaced with “Japan Post Co., Ltd. does not dispatch those postal items nor does it deliver them to an addressee”.

(5)If the inspection referred to in the proviso to paragraph (1) is completed or if it is found that the inspection is unnecessary, the Director General of Customs shall notify this to Japan Post Co., Ltd.

(Collection of customs duty on pre-delivery postal items)

Article 76-2.If postal items that has been notified under paragraph (5) of the preceding Article (limited to those to be imported) and have not yet been delivered to an addressee (hereinafter referred to as “pre-delivery postal items” in this Article) were lost or destroyed, customs duty chargeable thereon is immediately collected from Japan Post Co., Ltd.; provided, however, that this does not apply if pre-delivery postal items were lost due to a disaster or other unavoidable circumstances or were destroyed with advance approval of the Director General of Customs.

(2)Paragraph (2) of Article 45 (Liability for payment of customs duty, etc. of a person who has obtained permission) applies mutatis mutandis to the approval referred to in the proviso to the preceding paragraph.

(3)If pre-delivery postal items were lost, Japan Post Co., Ltd. shall, pursuant to the provisions of Cabinet Order, immediately notify this to the Director General of Customs.

(Payment, etc. of customs duty on postal items)

Article 77.If postal items contain goods for which customs duty is to be paid (limited to those goods subject to the official assessment system; hereinafter the same applies in this Article through Article 77-3 and Article 78), the Director General of Customs shall, through Japan Post Co., Ltd., notify in writing the basis for duty assessment and the amount of duty for these postal items to an addressee of the postal items.

(2)Japan Post Co., Ltd. shall, before delivering the postal items referred to in the preceding paragraph, deliver to the addressee a written notification referred to in that paragraph.

(3)A person who seeks to receive the postal items referred to in the preceding paragraph, shall pay customs duty in an amount equivalent to that stated in a written notification referred to in that paragraph or entrust Japan Post Co., Ltd. with payment of customs duty pursuant to the provisions of paragraph (1) of the next Article; provided, however, that this does not apply when a person who seeks to receive the postal items has obtained the approval referred to in paragraph (1) of Article 63 (Customs transit) for these items and receives them after presenting to Japan Post Co., Ltd. a document related to that approval.

(4)A person who seeks to pay customs duty pursuant to the provisions of the preceding paragraph shall pay to the Bank of Japan (including its agencies authorized to receive national taxes) an amount of money equivalent to that of customs duty, accompanied by a written statement of payment; provided, however, that payment in securities as provided for by the Act on Payment of Revenues in Securities is not precluded.

(5)If an addressee of postal items referred to in paragraph (1) pays customs duty on the postal items pursuant to the provisions of paragraph (3) or delivers to Japan Post Co., Ltd. an amount of money equivalent to that of customs duty on the postal items pursuant to the provisions of paragraph (1) of the next Article, a written notification related to the postal items as referred to in paragraph (1) is deemed to be a written notice of official assessment determination as provided for in paragraph (4) of Article 8 (Official assessment determination).

(6)The addressee of postal items referred to in paragraph (1), if approval of the Director General of Customs is given in advance pursuant to the provisions of Cabinet Order, may receive the postal items before determination is made with respect to the basis for duty assessment and an amount of duty on the postal items. In this case, if the Director General of Customs becomes able to determine the basis for duty assessment and the amount of duty chargeable, the Director General of Customs shall make determination prescribed in paragraph (1) of Article 8 (Official assessment determination) without delay and give a notice of duty payment prescribed in paragraph (1) of Article 9-3 (Notice of duty payment).

(7)When the Director General of Customs gives the approval referred to in the preceding paragraph, if it is found necessary to do so, the Director General of Customs may require security to be provided in an amount equivalent to that of customs duty chargeable.

(8)For the purpose of application of this Act except Article 4 (Timing of determination for duty assessment of dutiable items) and Article 5 (Applicable laws and regulations), postal items received with the approval referred to in paragraph (6) are deemed to be domestic goods.

(Entrustment of payment of customs duty on postal items)

Article 77-2.A person who seeks to pay customs duty on postal items may deliver to Japan Post Co., Ltd. an amount of money equivalent to that of duty stated in the written notification referred to in paragraph (1) of the preceding Article, accompanied by a written statement of payment referred to in paragraph (4) of that Article and entrust Japan Post Co., Ltd. with the payment of customs duty.

(2)When a person who seeks to pay customs duty on postal items has delivered to Japan Post Co., Ltd. an amount of money equivalent to that of duty sought to be paid pursuant to the provisions of the preceding paragraph, the customs duty is deemed to have been paid on the day of that delivery and Article 12 (Delinquent duty) applies.

(Payment of customs duty, etc. by Japan Post Co., Ltd.)

Article 77-3.When Japan Post Co., Ltd. has been delivered an amount of money equivalent to that of customs duty on postal items under entrustment from a person who is to pay customs duty pursuant to the provisions of paragraph (1) of the preceding Article, Japan Post Co., Ltd. shall pay to the Bank of Japan (including its agencies authorized to receive national taxes) an amount of money equivalent to that of customs duty so entrusted, accompanied by a written statement of payment on or before the day as prescribed by Cabinet Order; provided, however, that payment in securities as provided for by the Act on Payment of Revenue in Securities is not precluded.

(2)When Japan Post Co., Ltd. has been delivered an amount of money equivalent to that of customs duty on postal items under entrustment from a person who is to pay customs duty pursuant to the provisions of paragraph (1) of the preceding Article, Japan Post Co., Ltd. shall, pursuant to the provisions of the Ministry of Finance Order, report that fact and the date of delivery to the Director General of Customs without delay.

(3)When Japan Post Co., Ltd. fails to pay the whole amount of customs duty referred to in paragraph (1) on or before the day prescribed by Cabinet Order as provided for in that paragraph, the Director General of Customs collects customs duty from Japan Post Co., Ltd., using the same rules as national taxes, applicable to collection relating to a guarantor of national taxes.

(4)With respect to customs duty to be paid by Japan Post Co., Ltd. pursuant to the provisions of paragraph (1), unless any balance to be collected remains even after disposition is made to Japan Post Co., Ltd. under Article 40 (Disposition of delinquency) of the Act on General Rules for National Taxes, applied as a rule pursuant to the provisions of the preceding paragraph, the Director General of Customs may not collect the amount of balance from a person who entrusts payment of customs duty under paragraph (1) of the preceding Article.

(5)The Director General of Customs, if it is found necessary when reporting prescribed in paragraph (2) has been done, may require Japan Post Co., Ltd. to provide security in an amount equivalent to that of customs duty chargeable on the postal items subject to the report.

(Keeping of books)

Article 77-4.Japan Post Co., Ltd. shall, pursuant to the provisions of Cabinet Order, keep and preserve books stating the matters concerning the services relating to payment of customs duty, entrusted pursuant to the provisions of paragraph (1) of Article 77-2 (Entrustment of payment of customs duty on postal items).

(Rectification of illegal acts, etc.)

Article 77-5.If it is found that Japan Post Co., Ltd. violates or is likely to violate paragraph (2) of Article 77-3 (Payment of customs duty, etc. by Japan Post Co., Ltd.) or the preceding Article, the Director General of Customs may request Japan Post Co., Ltd. to take necessary measures to rectify such acts.

(2)Japan Post Co., Ltd., if requested by the Director General of Customs under the preceding paragraph, shall take measures to rectify such acts or other measures found necessary without delay and shall report the details of such measures to the Director General of Customs.

(Postal items bearing false indication of origin, etc.)

Article 78.If goods other than correspondence, contained in imported postal items bear directly or indirectly any false or deceptive indication of origin, the Director General of Customs shall notify this to Japan Post Co., Ltd.

(2)Japan Post Co., Ltd., when it receives a notification referred to in the preceding paragraph, shall have an addressee erase or correct, according to the addressee’s choice, the indication referred to in that paragraph.

(3)Unless an addressee erases or corrects the indication referred to in paragraph (1), Japan Post Co., Ltd. shall not deliver the postal items.

(Revocation of export or import permission for postal items)

Article 78-2.When an addresser requests Japan Post Co., Ltd. to recover a postal item the exportation of which has been permitted, but that has not yet been exported or in other cases prescribed by Cabinet Order, Japan Post Co., Ltd. shall immediately notify the Director General of Customs of that fact and return the postal item to a customs area where it was stored at the time of export permission (or, in the case of postal items for which export permission is deemed to have been given under Article 73-2 (Goods the exportation of which is deemed to be permitted), at the time when a notification was issued pursuant to the provisions of paragraph (5) of Article 76 (Simplified export or import procedures for postal items)).

(2)When the Director General of Customs has received a notification prescribed in the preceding paragraph, if the postal items referred to in that paragraph have been brought into the customs area referred to in that paragraph, the Director General of Customs shall revoke export permission of the postal items.

(3)When the Director General of Customs has revoked export permission pursuant to the provisions of the preceding paragraph, the Director General of Customs shall notify this to the addresser referred to in paragraph (1).

(4)The preceding three paragraphs apply mutatis mutandis to postal items the importation of which has been permitted, but that have not yet been delivered to their addressees. In this case, the term “at the time of export permission (or, in the case of postal items for which export permission is deemed to have been given under Article 73-2 (Goods the exportation of which is deemed to be permitted), at the time when a notification was issued pursuant to the provisions of paragraph (5) of Article 76 (Simplified export or import procedures for postal items))” in paragraph (1) is deemed to be replaced with “at the time of import permission” and the term “the addresser referred to in paragraph (1)” in the preceding paragraph is deemed to be replaced with “the addressee of the postal items”, and necessary technical replacement of terms is prescribed by Cabinet Order.

(Mutatis mutandis application of provisions on postal items relating to correspondence, etc.)

Article 78-3.The main clause of paragraph (1) of Article 76 (Simplified export or import procedures for postal items) applies mutatis mutandis to the correspondence that does not fall under postal items, and paragraph (2) of that Article applies mutatis mutandis if inspection of postal correspondence is conducted pursuant to the provisions of this Act.

Chapter 6-2 Authorized Customs Brokers

(Authorization of customs brokers)

Article 79.A customs broker may, upon application, be authorized by the Director General of Customs to be a broker recognized as being capable of properly and surely performing customs clearance services and other export- and import-related services.

(2)A person who seeks the authorization referred to in the preceding paragraph shall file with the Director General of Customs a written application stating the domicile or residence, name and other necessary matters.

(i)that a person who seeks the authorization does not fall under any of the following:

(a)that a period of three years has not elapsed from the day on which the authorization referred to in paragraph (1) was revoked pursuant to the provisions of paragraph (1) of Article 79-5 (Revocation of authorization);

(b)that, with respect to permission already given under paragraph (1) of Article 3 (Permission for customs brokerage) of the Customs Brokerage Act, a period of three years has not elapsed from the day on which the permission was given;

(c)that the person does not meet the criteria set forth in the items of Article 5 (Criteria for permission) of the Customs Brokerage Act;

(d)that the person falls under any of items (i), (iii) to (vii), (x) and (xi) of Article 6 (Grounds for disqualification) of the Customs Brokerage Act;

(e)that the person uses, with respect to the services, any person who falls under item (vi) or (vii) of Article 6 of the Customs Brokerage Act as an agent, employee or other worker;

(ii)that a person who seeks the authorization has the ability to provide customs clearance services by means of electronic data processing system or otherwise to provide export- and import-related services in accordance with the criteria prescribed by the Ministry of Finance Order;

(iii)that a person who seeks the authorization has established, with respect to export- and import-related services, a rule covering matters prescribed by the Ministry of Finance Order as those for ensuring that the person (in the case of a juridical person, including its officer), the agent, manager and other employee comply with the provisions of this Act and other laws and regulations.

(4)When the Director General of Customs has given the authorization referred to in paragraph (1), the Director General of Customs shall immediately make a public notice thereof.

(5)Necessary matters concerning filing of a written application referred to in paragraph (2) and any other necessary matters concerning application of the preceding paragraphs are prescribed by Cabinet Order.

(Improvement measures relating to a rule, etc.)

Article 79-2.The Director General of Customs, if it is found necessary in order to ensure the implementation of this Act for the reason that a person who has obtained the authorization referred to in paragraph (1) of the preceding Article (hereinafter referred to as “authorized customs broker”) fails to conduct export- and import-related services in accordance with the provisions of this Act, may request that person to take necessary measures for improving the rule provided for in item (iii) of paragraph (3) of that Article or the performance of business activities in connection with the matters specified by that rule, or to newly establish a rule provided for in that item.

(Notification of discontinuance of authorization of an authorized customs broker)

Article 79-3.If an authorized customs broker no longer needs the authorization referred to in paragraph (1) of Article 79 (Authorization of customs brokers), the authorized customs broker may, pursuant to the provisions of Cabinet Order, notify this to the Director General of Customs who has given the authorization referred to in that paragraph.

(Invalidation of authorization)

Article 79-4.The authorization referred to in paragraph (1) of Article 79 (Authorization of customs brokers) ceases to be effective if any of the situations as set forth in the following items occurs:

(i)when a notification prescribed in the preceding Article is submitted;

(ii)when, after the death of an authorized customs broker, application prescribed in paragraph (2) of Article 48-2 (Succession of permission), as applied mutatis mutandis pursuant to Article 79-6 (Mutatis mutandis application of provisions on succession of permission) is not made within the period specified in that paragraph, or when disposition not to give the approval referred to in that paragraph is made;

(iii)when permission of custom brokerage ceases to be valid pursuant to the provisions of paragraph (1) of Article 10 (Invalidation of permission) of the Customs Brokerage Act;

(iv)when permission of customs brokerage is revoked pursuant to the provisions of paragraph (1) of Article 11 (Revocation of permission) of the Customs Brokerage Act;

(v)when the Director General of Customs revokes the authorization.

(2)When the authorization referred to in paragraph (1) of Article 79 ceases to be effective, the Director General of Customs shall immediately give a public notice thereof.

(3)When the authorization referred to in paragraph (1) of Article 79 ceases to be effective, if any customs clearance procedures (limited to those for special declaration (limited to a declaration by a special entrusting importer) or for export declaration under specific entrustment; hereinafter the same applies in this paragraph) are being processed, a person who has been given the authorization or the heir (or, when a juridical person that has been given authorization has ceased to exist as a result of merger, a juridical person that survives the merger or a juridical person that has been established as a result of the merger) is deemed to be given the authorization for the customs clearance procedures.

(Revocation of authorization)

Article 79-5.If an authorized customs broker falls under any of the following items, the Director General of Customs may revoke the authorization referred to in paragraph (1) of Article 79 (Authorization of customs brokers):

(i)when the broker falls under items (i)(c) to (i)(e) of paragraph (3) of Article 79 or fails to meet the criteria referred to in item (ii) of that paragraph;

(ii)when the broker fails to respond to the request of the Director General of Customs, as prescribed in Article 79-2 (Improvement measures relating to a rule, etc.).

(Mutatis mutandis application of provisions on succession of permission)

Article 79-6.Article 48-2 (Succession of permission) applies mutatis mutandis to an authorized customs broker. In this case, necessary technical replacement of terms is prescribed by Cabinet Order.

Chapter 7 Custody and Retention

(Custody of goods)

Article 80.The Director General of Customs may take into custody goods set forth in the following for the purpose of removing any obstacles to the use of a customs area or ensuring collection of customs duty. In this case, the Government does not bear the risk of any damage unless it is caused intentionally or by negligence:

(i)foreign goods stored in a designated customs area for a period exceeding one month from the day on which they were brought into that area;

(ii)foreign goods stored in a customs warehouse for a period exceeding a period specified in Article 43-2 (Period for which foreign goods may be stored);

(iii)foreign goods stored in a customs factory for a period exceeding a period specified in Article 57 (Period for which foreign goods may be stored);

(iii)-2foreign goods stored in an integrated customs area for a period exceeding the period specified in Article 62-9 (Period for which foreign goods may be stored);

(iii)-3foreign goods stored in a customs warehouse, customs factory or integrated customs area for a period exceeding the period specified in paragraph (1) of Article 43-3 (Approval for storage of foreign goods) (including the cases where applied mutatis mutandis pursuant to Article 61-4) or Article 62-10 (Approval for storage, etc. of foreign goods), without obtaining approval prescribed in these provisions;

(iv)foreign goods stored in a place deemed to be a designated customs area, customs warehouse, customs factory, customs exhibition site or integrated customs area pursuant to the provisions of Article 41 (Foreign goods stored after revocation of designation) or paragraph (3) of Article 47 (Invalidation of permission) (including the cases where applied mutatis mutandis pursuant to Articles 61-4, 62-7 and 62-15) for a period exceeding the period specified by the Director General of Customs pursuant to these provisions;

(v)foreign goods permitted to be stored in a place specified pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Restrictions on places for storage of foreign goods), and stored in that place for a period exceeding the period specified pursuant to the provisions of that item;

(vi)goods that are stored in a customs area and are ordered, pursuant to the provisions of item (i) of Article 106 (Authority of the Director General of Customs in special cases), to be brought out of that area where they are stored for a period exceeding the period specified by the Director General of Customs pursuant to the provisions of that item;

(vii)goods that, with the approval prescribed in paragraph (1) of Article 83 (Release from custody), are stored at a place where they were located at the time of the approval for more than three days (excluding holidays of administrative organs, if any) after the date of the approval (excluding foreign goods that are kept in custody pursuant to the provisions of the proviso to paragraph (3) of the next Article and for which the permission referred to in Article 67 (Export or import permission) or the approval referred to in paragraph (1) of Article 73 (Withdrawal of goods prior to import permission) has been given).

(2)The periods set forth in the items of the preceding paragraph may be shortened if the goods set forth in these items are live animals or plants, if the goods are spoiled or deteriorate or are likely to be spoiled or deteriorate or if the goods are likely to damage any other foreign goods.

(3)When the Director General of Customs has taken goods into custody pursuant to the provisions of paragraph (1) or the preceding paragraph, the Director General of Customs shall, pursuant to the provisions of Cabinet Order, immediately give a public notice thereof. In this case, if the period has been shortened under the preceding paragraph, the Director General of Customs shall notify that fact to an owner, administrator or other interested person of the goods, if known.

(Method of custody)

Article 80-2.Custody is to be effectuated by the customs by way of possessing goods.

(2)Notwithstanding the provisions of other laws and regulations, any pledgee or lienholder of goods that are to be taken into custody shall deliver the goods to the customs.

(3)Goods taken into custody are kept at a place administered by the customs; provided, however, that if it is found difficult or inappropriate to keep goods at that place, the customs may, with the consent of the administrator of the place where they are stored, have the administrator act as custodian of the goods. In this case, the customs shall make it clear, by putting them under seal or other means, that the goods are those taken into custody.

(Effect of custody)

Article 81.The effect of custody is to extend to natural fruit that derive from goods taken into custody.

(2)Judicial provisional seizure or provisional disposition does not preclude execution of custody.

(Custody charge)

Article 82.With respect to goods taken into custody, a custody charge is imposed in an amount to be prescribed by Cabinet Order on the basis of the type, volume or weight and the period of custody, of the goods.

(Release from custody)

Article 83.A person who seeks release of goods from custody shall, pursuant to the provisions of Cabinet Order, pay to the customs expenses incurred for custody and custody charge and obtain approval of the Director General of Customs.

(2)When the Director General of Customs finds it to be certain that the goods taken into custody will be withdrawn from custody, the Director General of Customs shall give the approval referred to in the preceding paragraph.

(Public auction or sale, etc. of goods kept in custody)

Article 84.If goods kept in custody have still been kept for a period exceeding four months from the day on which they were initially taken into custody, the Director General of Customs may, after giving a public notice, offer these goods for public auction pursuant to the provisions of Cabinet Order. In this case, if the period is shortened under the next paragraph for the goods offered for public auction, the second sentence of paragraph (3) of Article 80 (Custody of goods) applies mutatis mutandis.

(2)The period referred to in the preceding paragraph may be shortened if the goods taken into custody are live animals or plants, if the goods have been spoiled or have deteriorated or are likely to be spoiled or deteriorate or if the goods are likely to damage any other foreign goods.

(3)If goods kept in custody cannot be offered for public auction or if there is no purchaser at the public auction, the Director General of Customs may, pursuant to the provisions of Cabinet Order, sell these goods under a negotiated contract.

(4)When the goods referred to in paragraph (1) of Article 71 (Goods bearing false indication of origin, etc.) are offered for public auction or are sold under a negotiated contract pursuant to the provisions of paragraph (1), (2) or (3), the customs shall erase the false or deceptive indication of origin.

(5)The Director General of Customs may dispose of goods kept in custody if they are likely to cause an imminent danger of jeopardizing human life or damaging property or if they depreciate significantly in their value due to spoilage, deterioration or other unavoidable circumstances and if there is no purchaser of the goods.

(6)Paragraph (2) of Article 81 (Custody and provisional seizure or provisional disposition) applies mutatis mutandis to public auction or sale under a negotiated contract, as prescribed in paragraph (1), (2) or (3).

(Allocation and deposit of proceeds from public auction, etc.)

Article 85.When goods are offered for public auction or are sold under a negotiated contract pursuant to the provisions of paragraph (1), (2) or (3) of the preceding Article, customs duty and other national taxes for the goods are immediately collected. In this case, the proceeds from the sale, pursuant to the provisions of Cabinet Order, are allocated to the expenses in the order of expenses for public auction or sale under a negotiated contract, expenses for custody, custody charge, customs duty and other national taxes, and the remaining amount, if any, is delivered to a person who owned the goods at the time of public auction or sale under a negotiated contract.

(2)When there is any remaining amount referred to in the preceding paragraph, if any person had a pledge of, or lien on goods at the time when the goods offered for public auction or sold under a negotiated contract were taken into custody, an amount up to the amount of credit secured by the pledge or lien is delivered to the person who had the pledge or lien, prior to delivery of the remaining amount to the owner of the goods pursuant to the provisions of that paragraph.

(3)The amount to be delivered under the preceding two paragraphs may be deposited pursuant to the provisions of Cabinet Order.

(Retention of personal effects of passengers, etc.)

Article 86.When personal effects of a passenger or crew member are those that fall under paragraph (3) of Article 70 (Goods for which certification or confirmation cannot be made), the Director General of Customs may retain the goods in exchange for a certificate of retention.

(2)A person who seeks return of goods retained pursuant to the provisions of the preceding paragraph shall pay to the customs the expenses incurred for their retention.

(Retention of goods bearing false indication of origin, etc.)

Article 87.If a person who has made an import declaration for the goods referred to in paragraph (1) of Article 71 (Goods bearing false indication of origin, etc.) does not erase or correct a false or deceptive indication of origin nor does the person reship them, within the period designated pursuant to the provisions of paragraph (2) of that Article, the Director General of Customs retains these goods.

(2)Goods retained under the preceding paragraph are returned pursuant to the provisions of Cabinet Order only after the false or deceptive indication of origin is erased or corrected, or if it is found that they are to be reshipped.

(3)Paragraph (2) of the preceding Article applies mutatis mutandis to the return referred to in the preceding paragraph.

(Mutatis mutandis application of provisions on custody)

Article 88.The second sentence of paragraph (1) of Article 80 (Custody of goods), Article 80-2 (Method of custody), Article 81 (Effect of custody), Article 84 (Public auction or sale, etc. of goods kept in custody) and Article 85 (Allocation and deposit of proceeds from public auction, etc.) apply mutatis mutandis to retention of goods referred to in the preceding two Articles.

Chapter 7-2 Relations with Administrative Procedure Act

Article 88-2.In addition to what is provided for in paragraph (1) of Article 3 (Exclusion from application) and paragraph (1) of Article 4 (Exclusion from the application of dispositions, etc. rendered towards national government organs, etc.) of the Administrative Procedure Act (Act No. 88 of 1993), the provisions of Chapter 2 (Dispositions upon applications) (excluding Article 8 (Presentation of grounds)) and Chapter 3 (Adverse dispositions) (excluding Article 14 (Presentation of grounds for adverse dispositions)) of the Administrative Procedure Act do not apply to dispositions or other acts of the exercise of public authority based on this Act or other laws concerning customs duty (excluding those based on the provisions of paragraph (2) of Article 71 (Importation of goods bearing false indication of origin, etc.)).

(2)In addition to what is provided for in paragraph (1) of Article 3 and paragraph (4) of Article 35 (Means of administrative guidance) of the Administrative Procedure Act, paragraph (3) of Article 35 and Article 36 (Administrative guidance directed to more than one person) of the Administrative Procedure Act do not apply with respect to administrative guidance (i.e., administrative guidance as provided for in item (vi) of Article 2 (Definitions) of the Administrative Procedure Act) performed for the purpose of properly discharging the obligations to pay customs duty in accordance with the provisions of this Act or other laws concerning customs duty

Chapter 8 Appeal

(Request for re-investigation)

Article 89.Any person may request re-investigation if the person is dissatisfied with the disposition of the Director General of Customs as prescribed in the provisions of this Act or any other laws concerning customs duty.

(2)For the purpose of application of the preceding paragraph and Article 91, any disposition of customs officials as prescribed in the provisions of this Act or other laws concerning customs duty is deemed to be a disposition made by the Director General of Customs having jurisdiction over the customs office to which the customs officials belong.

Article 90.Deleted.

(Referral to Councils, etc.)

Article 91.When a request for administrative review is filed with respect to the disposition made by the Minister of Finance or the Director General of Customs under the provisions of this Act or other laws concerning customs duty, the Minister of Finance shall, except in the case falling under any of the following items, refer the matter to the Council, etc. (i.e., the organs provided for in Article 8 (Council, etc.) of the National Government Organization Act (Act No. 120 of 1948)) prescribed by Cabinet Order:

(i)if a person who requests administrative review has informed the wish not to refer the matter to the Council, etc. (excluding when any intervenor (i.e., an intervenor provided for in paragraph (4) of Article 13 (Intervenor) of the Administrative Complaint Review Act) has raised any objection to that wish);

(ii)if the request for administrative review is unlawful and thus dismissed;

(iii)if the disposition subject to administrative review (excluding the disposition and de fact acts to dismiss or reject application based on the laws and regulations) is wholly revoked pursuant to the provisions of paragraph (1) of Article 46 (Upholding of request for administrative review with respect to disposition) of the Administrative Complaint Review Act or if the de fact acts subject to the administrative review are ordered to be wholly rescinded pursuant to the provisions of item (i) or (ii) of Article 47 (Upholding of request for administrative review with respect to disposition) of that Act or are to be rescinded (excluding the cases where a written opinion stating opposition against the whole revocation of the disposition, or against the order to rescind the de fact acts as a whole or against the rescission is submitted and where opinion to that effect is stated in the oral statement of opinion);

(iv)if the measures provided for in the items of paragraph (2) of Article 46 of the Administrative Complaint Review Act (limited to the measures ordering upholding the whole application made on the basis of the laws and regulations or the measures to uphold the application) are to be taken (excluding when any written opinion opposing upholding of the whole application is submitted or any opinion is stated to that effect in the oral statement of opinion).

Article 92.Deleted.

(Relations between request for administrative review and litigation)

Article 93.Any action for revocation of administrative disposition or notification set forth in the following may not be filed until an administrative determination is made on the request for administrative review with respect to such disposition or notification:

(i)disposition concerning determination or collection of customs duty or disposition of delinquency (i.e., disposition of delinquency when customs duty is collected, using the same rules as for national taxes);

(ii)notification prescribed in paragraph (3) of Article 69-2 (Goods the exportation of which is prohibited) or paragraph (3) of Article 69-11 (Goods the importation of which is prohibited).

Chapter 9 Miscellaneous Provisions

(Keeping of books, etc.)

Article 94.A person who imports, in the course of trade, goods to which the self-assessment system applies (excluding specially declared goods of an authorized importer) shall, pursuant to the provisions of Cabinet Order, keep books stating the descriptions, quantities, prices and other necessary matters, of the goods (hereinafter referred to as “books relating to customs duty”) and preserve these books and documents prepared or received in connection with transaction associated with the goods and other documents specified by Cabinet Order (hereinafter referred to as “documents relating to customs duty”); provided, however, that this does not apply to documents submitted to the customs pursuant to the provisions of Article 68 (Documents to be submitted at the time of export or import declaration).

(2)The preceding paragraph applies mutatis mutandis to a person who exports goods in the course of trade (excluding goods exported as accompanied goods by a person upon departure from Japan, postal items and specific export goods).

(Preservation, etc. of books and documents relating to customs duty by means of electronic or magnetic records)

Article 94-2.If a person who imports goods in the course of trade as referred to in paragraph (1) of the preceding Article or a person who exports goods in the course of trade as referred to in paragraph (2) of that Article (hereinafter referred to as “a person responsible for preservation”) prepares books relating to customs duty, using, with consistency, a computer from the beginning of recording, keeping and preservation of the books relating to customs duty may, pursuant to the provisions of the Ministry of Finance Order, be replaced with keeping and preservation of the electronic or magnetic records of the books relating to customs duty.

(2)If a person responsible for preservation prepares the whole or part of documents relating to customs duty, using, with consistency, a computer, preservation of the documents relating to customs duty may, pursuant to the provisions of the Ministry of Finance Order, be replaced with preservation of electronic or magnetic records of the documents relating to customs duty.

(3)In addition to what is provided for in the preceding paragraph, if a person responsible for preservation records in electronic or magnetic records the matters stated in the documents relating to customs duty for the whole or part of these documents (excluding those specified by the Ministry of Finance Order; hereinafter in this paragraph the same applies), using the system specified by the Ministry of Finance Order, the person may, pursuant to the provisions of that Order, replace preservation of these documents with preservation of the electronic or magnetic records of these documents. In this case, if the electronic or magnetic records of the documents relating to customs duty are not preserved in accordance with the provisions of that Order (excluding when the documents relating customs duty are preserved), that person shall preserve the electronic or magnetic records in the manner consistent with the requirements specified by that Order, including the preservation period of the records.

(Preservation, etc. of books and documents relating to customs duty by means of computer-output microfilms)

Article 94-3.If a person responsible for preservation prepares, with consistency, books relating to customs duty from the beginning of recording, using a computer, keeping and preservation of these books may, pursuant to the provisions of the Ministry of Finance Order, be replaced with keeping of the electronic or magnetic records of these books and preservation of the computer-output microfilms of these electronic or magnetic records.

(2)If a person responsible for preservation prepares, with consistency, the whole or part of documents relating to customs duty, using a computer, preservation of these documents may, pursuant to the provisions of the Ministry of Finance Order, be replaced with preservation of computer-output microfilms of the electronic or magnetic records of these documents.

(3)A person responsible for preservation who replaces keeping and preservation of books relating to customs duty with keeping and preservation of electronic or magnetic records of the books pursuant to the provisions of paragraph (1) of the preceding Article or a person responsible for preservation who replaces preservation of the documents relating to customs duty with preservation of electronic or magnetic records of the documents pursuant to the provisions of paragraph (2) of that Article may, if specified by the Ministry of Finance Order, replace preservation of electronic or magnetic records of these books or documents relating to customs duty with preservation of computer-output microfilms of the electronic or magnetic records of these books or documents for the whole or part of these books or documents, pursuant to the provisions of the Ministry of Finance Order.

(Exclusion from application of the Act on the Use of Information and Communication Technology in the Preservation of Documents by Private Business Operators, Etc.）

Article 94-4.Articles 3 (Preservation by electronic or magnetic records) and 4 (Preparation by electronic or magnetic records) of the Act on the Use of Information and Communication Technology in the Preservation of Documents by Private Business Operators, Etc. (Act No. 149 of 2016) do not apply to books relating to customs duty and documents relating to customs duty.

(Preservation of electronic or magnetic records of information on electronic transaction)

Article 94-5.If a person responsible for preservation conducts electronic transaction (i.e., transactions conducted by transferring transaction information in an electronic or magnetic form (the transaction information herein means matters usually stated in the contracts, invoices, packing lists, price lists, documents on transactions with suppliers, prepared by manufacturers or sellers and any other equivalent documents, received or delivered in connection with transactions of goods; hereinafter in this paragraph the same applies), the person shall preserve electronic or magnetic records of the information on such electronic transaction; provided, however, that this does not apply when documents prepared by outputting the electronic or magnetic records or computer-output microfilm are preserved pursuant to the provisions of the Ministry of Finance Order.

(Application of provisions of laws concerning customs duty)

Article 94-6.For the purpose of application of the laws concerning customs duty to books relating to customs duty kept and preserved or electronic or magnetic records of documents relating to customs duty or computer-output microfilms preserved, in accordance with the Ministry of Finance Order, as provided for in any of paragraphs (1), (2) or the first sentence of paragraph (3) of Article 94-2 (Preservation, etc. of books and documents relating to customs duty by means of electronic or magnetic records) or in any of the paragraphs of Article 94-3 (Preservation, etc. of books and documents relating to customs duty by means of computer-output microfilms), these electronic or magnetic records or computer-output microfilms are deemed to be the books relating to customs duty or documents relating to customs duty.

(2)For the purpose of application of the laws concerning customs duty to the electronic or magnetic records or computer-output microfilms preserved in accordance with the provisions of the Ministry of Finance Order as provided for in the preceding Article, the electronic or magnetic records or computer-output microfilms are deemed to be documents other than those relating to customs duty.

(Administrator of customs matters)

Article 95.When a declarant, etc. who is an individual (i.e., a person who is to undertake customs procedures; hereinafter the same applies in this Article) does not have or ceases to have the domicile or residence in Japan (excluding the office and place of business) or a declarant, etc. who is a juridical person having no headquarters or principal office in Japan does not have or ceases to have its office or place of business in Japan, if the customs procedures and any matters associated with the customs procedures (hereinafter in this Article referred to as “customs procedures, etc.”) need to be managed, the declarant, etc. shall, in order to have the customs procedures, etc. managed, appoint an administrator of customs matters from among those who have domicile or residence (in the case of a juridical person, the headquarters or principal office) in Japan and can provide services for managing the customs procedures, etc.

(2)When a declarant, etc. has appointed an administrator of customs matters under the preceding paragraph, the declarant, etc. shall, pursuant to the provisions of Cabinet Order, notify the Director General of Customs involved in the customs procedures that are to be managed by that administrator of the domicile or residence of that administrator (in the case of a juridical person, the address of its headquarters or principal office), the name of that administrator and other necessary matters. The same applies when the declarant, etc. has dismissed that administrator.

(3)In the case referred to in paragraph (1), if the declarant, etc. referred to in that paragraph has failed to issue a notification of an administrator of customs matters as prescribed in the preceding paragraph, the Director General of Customs involved in the customs procedures referred to in that paragraph may specifically indicate the customs procedures that are, from among customs procedures, etc., specified by the Ministry of Finance Order as those found necessary to have that administrator undertaken (referred to as “specific matters” in the next paragraph to paragraph (6)) and may request the declarant, etc. in writing, to issue a notification of an administrator of customs matters as prescribed in the preceding paragraph on or before the day to be designated within 60 days, taking into account the number of days usually required to prepare the notification (in paragraph (5) referred to as “designated day”).

(4)In the case referred to in paragraph (1), if the declarant, etc. referred to in that paragraph has failed to issue a notification of an administrator of customs matters as prescribed in paragraph (2), the Director General of Customs involved in the customs procedures referred to in that paragraph may request in writing a person having the domicile or residence in Japan (in the case of a juridical person, the headquarters or principal office) and being capable of providing services of handling of the specific matters (referred to as “domestic services provider” in the next paragraph) to act as an administrator of customs matters on behalf of that declarant, etc.

(5)The Director General of Customs referred to in paragraph (3), if the declarant, etc. referred to in that paragraph (hereinafter referred to as “specific declarant, etc.” in this paragraph and paragraph (7)) has failed to issue a notification of an administrator of customs matters as prescribed in paragraph (2) on or before the designated day, may designate, from among domestic services providers who have been requested to be an administrator of customs matters pursuant to the provisions of the preceding paragraph, a person set forth in the following as an administrator of customs matters to undertake handling of the specific matters (the administrator so designated is referred to as “specific administrator of customs matters” in the next paragraph and paragraph (7)):

(i)a person who is closely related under a contract with the specific declarant, etc. with respect to the facts that are to be taken as a basis for calculation of the amount of customs duty, etc. of the specific declarant, etc. or with respect to the customs procedures, etc. or goods associated with the specific declarant, etc.;

(ii)a business operator who provides facilities that enable the specific declarant, etc. to perform the transactions, on a continuous or repetitive basis, through the use of internet or other advanced telecommunication networks and other transactions;

(iii)a person who has a special relationship with the specific declarant, etc. in which either of the parties directly or indirectly owns, controls or holds half or more of the total number of the outstanding voting shares related to the business of the other, or a person who has other special relationship with the specific declarant, etc. as specified by Cabinet Order.

(6)When the Director General of Customs referred to in the preceding paragraph has designated a specific administrator of customs matters pursuant to the provisions of the preceding paragraph, if it is no longer necessary to have that specific administrator undertake handling of the specific matters, the Director General of Customs shall rescind the designation of the specific administrator prescribed in that paragraph.

(7)The Director General of Customs referred to in the preceding two paragraphs, when a specific administrator of customs matters has been designated pursuant to the provisions of paragraph (5) or when the designation of a specific administrator of customs matters has been rescinded pursuant to the provisions of the preceding paragraph, notifies this in writing to the specific administrator of customs matters or the person who was designated as a specific administrator of customs matters and the specific declarant, etc.

(8)An administrator of customs matters who has handled customs procedures, etc., if requested by the Director General of Customs to present books relating to special imports and customs duty and documents relating to special imports and customs duty, books relating to specific exports and customs duty and documents relating to specific exports and customs duty or books relating to customs duty and documents relating to customs duty, that are required to be preserved by the declarant, etc. involved in the customs procedures, etc. pursuant to the provisions of paragraph (1) of Article 7-9 (Keeping of books, etc. related to an authorized importer), paragraph (1) of Article 67-8 (Keeping of books, etc. related to an authorized exporter) or paragraph (1) of Article 94 (Keeping of books, etc.) (including the cases where applied mutatis mutandis pursuant to paragraph (2) of that Article), shall present these books and documents to that Director General of Customs. In this case, the declarant, etc. shall provide the administrator of customs matters necessary support for presenting the books and documents.

(9)The term “customs procedures” as used in paragraphs (1) to (4) means procedures for import declaration or any other procedures based on the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty (excluding those procedures that are performed by a person who enters or departs from Japan at the time of its entry into or departure from Japan and other procedures prescribed by Cabinet Order).

(Port area of an open port and a customs airport)

Article 96.Except as provided for by Cabinet Order, the port area of an open port is the area of a port as provided for by the Port Regulations Act (Act No. 174 of 1948), and the port area of a customs airport is as prescribed by Cabinet Order.

(Notification by police officials, etc.)

Article 97.When a police official receives a notification prescribed in paragraph (2) of Article 20 (Entry into, or departure from a closed port), Article 21 (Temporary landing of foreign goods), the proviso to paragraph (2) of Article 23 (Loading, etc. of vessel’s or aircraft’s stores) or the proviso to paragraph (1) of Article 64 (Transportation of wreckage, etc.), the police official shall immediately notify this to the customs.

(2)When a chief of municipality sells goods at public auction, approves a sale of goods or delivers goods, pursuant to the provisions of the Sea Casualties Rescue Act (Act No. 95 of 1899), when a chief of a police station returns or sells goods or allows goods to be retrieved, pursuant to the provision of the Lost Property Act (Act No. 73 of 2006) or the Firearms and Sword Possessive Control Act or when a public official other than a customs official disposes of goods, if foreign goods are found among the goods so disposed of, the person concerned shall notify this to the customs in advance.

(3)In the case referred to in the preceding paragraph, in addition to the cases where paragraph (5) of Article 118 (Collection of customs duty on goods relating to criminal offenses, etc.) or paragraph (6) of Article 134 (Collection from the proceeds of realization of retained items, etc.) applies, customs duty on foreign goods is immediately collected from a person who acquires the goods as a result of the disposition referred to in the preceding paragraph (excluding a person prescribed by Cabinet Order).

(4)In the case referred to in the preceding paragraph, customs duty on foreign goods referred to in that paragraph is collected pursuant to the provisions of that paragraph at or after the time when the foreign goods are possessed by a person who makes the disposition referred to in that paragraph, even if customs duty should have been paid for the reason that the foreign goods were imported. In this case, if procedures for determination of customs duty prescribed in paragraph (2) of Article 7-16 (Determination) or any other procedures for determination of customs duty have been performed, these procedures are deemed not to have been performed.

(Request for customs services outside office hours)

Article 98.A person who seeks to request the customs to provide, outside the office hours of customs offices, the customs services prescribed by Cabinet Order shall file a notification of the request with the Director General of Customs in advance.

(2)In the case referred to in the preceding paragraph, the Director General of Customs, if it is found that no difficulty occurs in providing the customs services, provides the services requested in the notification referred to in that paragraph.

(Criteria for approval or permission)

Article 99.If it is found that no difficulty occurs in ensuring the implementation of this Act, the approval referred to in paragraph (2) of Article 59 (Use of domestic goods, etc.) (including the cases where applied mutatis mutandis pursuant to Article 62-15), paragraph (1) of Article 63 (Customs transit), paragraph (1) of Article 64 (Transportation of wreckage, etc.) or paragraph (1) of Article 66 (Transportation of domestic goods) or the permission referred to in the proviso to paragraph (3) of Article 16 (Loading or unloading of goods), paragraph (1) of Article 20 (Entry into, or departure from a closed port), Article 24 (Traffic, etc. between vessels or aircraft and land), item (ii) of paragraph (1) of Article 30 (Restrictions on places for storage of foreign goods) or Article 32 (Temporary taking out of samples) (including the cases where applied mutatis mutandis pursuant to Article 36) shall be given.

(Fees)

Article 100.A person who obtains the permission set forth in the following items shall, pursuant to the provisions of Cabinet Order, pay the customs a fee in an amount prescribed by Cabinet Order on the basis of the matters specified in these items:

(i)(i) permission referred to in paragraph (1) of Article 20 (Entry into, or departure from a closed port): net tonnage of a vessel engaged in foreign trade or deadweight of an aircraft engaged in foreign trade;

(ii)permission referred to in paragraph (1) of Article 42 (Permission of a customs warehouse), paragraph (1) of Article 56 (Permission of a customs factory), paragraph (1) of Article 62-2 (Permission of a customs exhibition site) or paragraph (1) of Article 62-8 (Permission of an integrated customs area): the type, total floor space and validity period of permission of a customs warehouse, customs factory, customs exhibition site or integrated customs area subject to the permission, and the types of customs services to be provided in the customs warehouse, customs factory, customs exhibition site or integrated customs area;

(iii)permission referred to in paragraph (2) of Article 69 (Place for inspection of goods) (including the cases where applied mutatis mutandis pursuant to Article 75): the time required for inspection associated with the permission.

(Reduction of, or exemption from fees)

Article 101.If it is found particularly necessary for promoting use of a designated customs area or for contributing to the promotion of trade or international cultural exchange, the Director General of Customs may, pursuant to the provisions of Cabinet Order, reduce the fees to be paid pursuant to the provisions of the preceding Article by a person who has obtained the permission referred to in paragraph (1) of Article 42 (A customs warehouse), paragraph (1) of Article 56 (A customs factory), paragraph (1) of Article 62-2 (A customs exhibition site) or paragraph (1) of Article 62-8 (An integrated customs area), or the fees may be exempted.

(2)If a person who has obtained the permission referred to in paragraph (1) of Article 42, paragraph (1) of Article 56, paragraph (1) of Article 62-2 or paragraph (1) of Article 62-8 notifies suspension of the business pursuant to the provisions of Article 46 (Notification of suspension or discontinuance of business) (including the cases where applied mutatis mutandis pursuant to Articles 61-4, 62-7 and 62-15), the Director General of Customs may, pursuant to the provisions of Cabinet Order, exempt from payment of the fees that the person is required to pay pursuant to the provisions of the preceding Article.

(3)If a vessel engaged in foreign trade enters the same closed port four times or more in one year, the Director General of Customs may, pursuant to the provisions of Cabinet Order, reduce, or exempt from permission fees set forth in item (i) of the preceding Article for the fourth and subsequent entry.

(4)The period referred to in the preceding paragraph commences on the first day of January.

(Delivery of certificates and inspection of statistics, etc.)

Article 102.Pursuant to the provisions of Cabinet Order, the customs shall deliver certificates concerning customs services if any person requests such certificates to be delivered, and shall prepare statistics concerning the matters set forth in the following and make the statistics available to any person for inspection if so requested:

(i)goods exported, reshipped or imported;

(ii)vessels engaged in foreign trade, etc. that entered, or departed from ports;

(iii)in addition to what is set forth in the preceding two items, other matters concerning foreign trade, as prescribed by Cabinet Order.

(2)A person who requests delivery of certificates referred to in the preceding paragraph shall, pursuant to the provisions of Cabinet Order, pay fees in an amount specified on the basis of the number of sheets of paper used for the certificates.

(3)The Minister of Finance shall prepare the statistics referred to in paragraph (1) and shall, pursuant to the provisions of Cabinet Order, make them publicly available at regular intervals.

(4)If any person requests inspection of the statistics prepared under the preceding paragraph, the Minister of Finance shall, pursuant to the provisions of Cabinet Order, make the statistics available to that person for inspection, and if any person requests recording of the statistics on a tape by providing magnetic tape for a computer or other recording media prescribed by Cabinet Order (hereinafter in this paragraph and in the next paragraph referred to as “magnetic tape, etc.”), shall record the statistics on the magnetic tape, etc. and deliver it to that person.

(5)Paragraph (2) applies mutatis mutandis to a person who requests recording of statistics on magnetic tapes, etc. In this case, the term “the number of sheets of paper used for certificates” in that paragraph is deemed to be replaced with “the number of magnetic tapes, etc.”.

(Refund of, reduction of or exemption from fees due to disaster, etc.)

Article 102-2.With respect to fees paid pursuant to the provisions of item (iii) of Article 100 (Fees) by a person who has obtained the permission referred to in paragraph (2) of Article 69 (Place for inspection of goods) (including the cases where applied mutatis mutandis pursuant to Article 75; the same applies in the next paragraph) for goods set forth in the following, the Director General of Customs, if it is found necessary, may refund, pursuant to the provisions of Cabinet Order, the amount equivalent to that of the fees paid:

(i)goods falling under the supplies donated for relief purposes as prescribed in item (iii) of paragraph (1) of Article 15 (Exemption from customs duty for specific use) of the Customs Tariff Act, intended for supporting victims of a disaster, etc.;

(ii)goods that are stored in a customs area (including a place for goods permitted by the Director General of Customs pursuant to the provisions of item (ii) of paragraph (1) of Article 30 (Restrictions on places for storage of foreign goods); hereinafter the same applies in this item) and that need to be urgently removed from that customs area for preservation or for other reason at the time of occurrence of a disaster, etc., or any other goods found to be equivalent to such goods by the Director General of Customs.

(2)With respect to the fees to be paid, pursuant to the provisions of item (iii) of Article 100, by a person who obtains the permission referred to in paragraph (2) of Article 69 for goods set forth in the items of the preceding paragraph, the Director General of Customs, if it is found necessary when granting the permission, may exempt from the fees pursuant to the provisions of Cabinet Order.

(3)With respect to the fees paid, pursuant to the provisions of paragraph (2) of the preceding Article, by a person requesting delivery of the following certificates that fall under those provided for in paragraph (1) of that Article, the Director General of Customs, if it is found necessary, may refund, pursuant to the provisions of Cabinet Order, the amount equivalent to that of the fees:

(i)a certificate related to goods set forth in item (i) of paragraph (1);

(ii)a certificate related to damage to goods set forth in item (ii) of paragraph (1), caused by a disaster, etc. referred to in that item;

(iii)a certificate identical in substance to a certificate issued to a victim of a disaster, etc. before occurrence of the disaster, etc., but lost, burnt or significantly damaged due to the disaster, etc., that has become necessary to the victim, or a document that certifies that an administrative disposition by the Director General of Customs was issued to a victim of a disaster, etc. before occurrence of the disaster, etc., but was lost, burnt or significantly damaged due to the disaster, etc. and has become necessary to the victim.

(4)With respect to the fees to be paid, pursuant to the provisions of paragraph (2) of the preceding Article, by a person who requests delivery of the certificate set forth in the items of the preceding paragraph, the Director General of Customs, if it is found necessary when issuing the certificate, may exempt from the fees pursuant to the provisions of Cabinet Order.

(5)If it is found that the facilities set forth in the left columns of the following table cause difficulty in performing business activities due to the damage to the facilities caused by a disaster, etc., the Director General of Customs may, pursuant to the provisions of Cabinet Order and according to the extent of the damage, refund wholly or partly the amount equivalent to that of the fees paid, pursuant to the provisions shown in the right columns of that table, by a person who has received the administrative disposition shown in the middle columns of that table relating to the facilities set forth in the left columns, or reduce the fees to be paid by that person pursuant to the provisions shown in the right columns of that table or may exempt from the fees:

(i) a customs warehouse	permission based on paragraph (1) of Article 42	item (ii) of Article 100
(ii) a customs factory	permission based on paragraph (1) of Article 56	item (ii) of Article 100
(iii) a customs exhibition site	permission based on paragraph (1) of Article 62-2	item (ii) of Article 100
(iv) an integrated customs area	permission based on paragraph (1) of Article 62-8	item (ii) of Article 100
(v) the facilities based on the provisions of the laws concerning customs duty and prescribed by Cabinet Order	the administrative disposition related to the facilities, based on the provisions of the laws concerning customs duty and prescribed by Cabinet Order	the provisions of the laws concerning customs duty, ordering payment of fees associated with the disposition, as prescribed by Cabinet Order

(Limitation of purchasers)

Article 103.If collateral for customs duty, goods taken into custody, retained or confiscated, or objects detained or seized are offered for public auction or for sale under negotiated contracts by the customs, it is not permissible for customs officials or their owners to purchase any of them through any means.

(Carrying and using firearms)

Article 104.A customs official, if it is found particularly necessary, may, until otherwise provided for by law, carry small firearms for conducting, pursuant to the provisions of this Act, surveillance over exportation or importation of goods or criminal investigation.

(2)A customs official, when conducting surveillance or investigation referred to in the preceding paragraph, if there are reasonable grounds to believe that it is unavoidably necessary for protecting the official’s or any other person’s life or body or for suppressing resistance against performing the official duties, may use the firearms referred to in the preceding paragraph to the extent considered reasonably necessary under the circumstances.

(Authority of customs officials)

Article 105.Customs officials, if it is necessary for performing their official duties prescribed by Cabinet Order under the provisions of this Act (except Chapter 11 (Investigation and Disposition of Criminal Cases)), the Customs Tariff Act or other laws concerning customs duty, may perform the acts set forth in the following to the extent considered necessary:

(i)with respect to a vessel, etc. engaged in foreign trade or a vessel, aircraft or vehicle other than a vessel, etc. engaged in foreign trade, which carries on board foreign goods, goods loaded thereon, goods stored in, or brought into or removed from, a customs area, or foreign goods other than those specified above, to question the owner, possessor, administrator, master of a vessel, captain of an aircraft, carrier or any other person concerned, to inspect the vessel, aircraft, vehicle or goods, or to have, instead of taking these actions, these persons produce or submit relevant documents (including electronic or magnetic records if such records are prepared or preserved in lieu of the documents);

(ii)to examine books and documents concerning goods set forth in the preceding item (including electronic or magnetic records, if such records are prepared or preserved in lieu of preparing or preserving the books or documents; the same applies in items (iv)-2 to (vi) and Article 105-3) or to seal the goods or place where they are stored;

(iii)to take samples or to require samples to be provided, at the time of inspection prescribed in Article 43-4 (Inspection at the time of approval, etc. for storage of foreign goods) (including the cases where applied mutatis mutandis pursuant to Articles 61-4 (Mutatis mutandis application of provisions on customs warehouses) and 62-15 (Mutatis mutandis application of provisions on a customs warehouse, customs factory and customs exhibition site), paragraph (3) of Article 61 (Operations under customs procedures performed outside a customs factory) (including the cases where applied mutatis mutandis pursuant to Article 62-7 (Mutatis mutandis application of provisions on a customs warehouse and customs factory) or Article 62-15), paragraph (2) of Article 62-3 (Procedures for bringing foreign goods into a customs exhibition site), paragraph (2) of Article 63 (Customs transit), Article 67 (Export or import permission) (including the cases where applied mutatis mutandis pursuant to Article 75), paragraph (3) of Article 67-4 (Revocation of export permission), or the proviso to paragraph (1) of Article 76 (Simplified export or import procedures for postal items);

(iv)to board a vessel, etc. engaged in foreign trade or a vessel or aircraft other than a vessel, etc. engaged in foreign trade, that loads or is to load foreign goods on board, or to require any vehicle entering, or departing from a customs area to temporarily halt;

(iv)-2to question an exporter of exported goods, a customs broker who provided customs clearance services for that export, a person who entrusted that export or other persons concerned (referred to as “exporter, etc.” in the next paragraph), to examine books and documents concerning the goods and any other items, or to request to present or submit the books, documents and other materials (including their copies);

(v)to inspect goods for which customs duty is reduced or exempted pursuant to the provisions of paragraph (1) of Article 13 (Reduction of, or exemption from customs duty on raw materials for manufacture) or paragraph (1) of Article 19 (Reduction of, exemption from or refund of customs duty on raw materials for manufacture of export goods, etc.) of the Customs Tariff Act, goods subject to refund of customs duty prescribed in paragraph (1) of Article 19, goods subject to deduction of customs duty prescribed in paragraph (6) of Article 19, products manufactured from these goods, machineries and instruments used for the manufacture, or to examine books and documents relating thereto;

(vi)to question an importer of imported goods, a customs broker who provided customs clearance services for that import, a person who entrusted that import, or a person who sold in Japan goods that have been dumped in the sense as provided for in paragraph (1) of Article 8 (Anti-dumping duty) of the Customs Tariff Act (including import of goods deemed to be dumped goods pursuant to the provisions of paragraph (36) of that Article) or other persons concerned (referred to as “importers, etc.” in the next paragraph), to examine the goods, books, documents and other items concerning the goods, or to request presentation or submission of the books, documents or items (including their copies).

(2)A customs official may, when requesting exporters, etc. or importers, etc. to submit items pursuant to the provisions of item (iv)-2 or (vi) of the preceding paragraph, if it is found necessary, retain the items so submitted.

(3)A customs official, when performing the official duties pursuant to the provisions of paragraph (1), shall, pursuant to the provisions of the Ministry of Finance Order, wear a uniform, carry the certificate of identification, and, if requested by any person concerned, present the certificate to that person.

(4)The authority for questioning or inspection as prescribed in paragraphs (1) and (2) shall not be construed as being approved for criminal investigation.

(5)In addition to what is provided for in the preceding paragraph, necessary matters concerning application of paragraph (2) are prescribed by Cabinet Order.

(Advance notice of investigation to importers, etc.)

Article 105-2.Articles 74-9 (excluding paragraphs (3), (5) and (6)) to 74-11 (excluding paragraph (4)) (Advance notice of investigations to taxpayers, etc.; Cases in which advance notice is not required; Procedures for terminating investigation) of the Act on General Rules for National Taxes apply mutatis mutandis when the Director General of Customs has customs officials ask importers questions, conduct inspection or request importers to present or submit books and documents, as provided for in item (vi) of paragraph (1) of the preceding Article. In this case, the terms shown in the middle columns of the following table, that correspond to the provisions set forth in the left columns are replaced with the terms shown respectively in the right columns, and necessary matters concerning application of these provisions are prescribed by Cabinet Order:

Provisions of the Act on General Rules for National Taxes	Terms or phrases to be replaced	Terms or phrases to replace
Paragraph (1) of Article 74-9	the District Director of Tax Office, etc. (i.e., the Commissioner of National Tax Agency, the Regional Commissioner of Regional Taxation Bureau, the District Director of Tax Office or the Director General of Customs; hereinafter the same applies in this Article to Article 74-11 (Procedures at the time of completion of investigation)	the Director General of Customs
	the National Tax Agency, etc. or the customs	the customs
	(hereinafter that Article	(hereinafter Article 74-11
	to the taxpayer	to the importer
	investigation (in the case of the investigation conducted by the customs officials, limited to the investigation conducted after the articles on which consumption tax, etc. is chargeable are withdrawn from customs areas; hereinafter the same applies in this Article to that Article)	investigation
	Articles 74-2 to 74-6 (Right of questioning and inspection of the officials)	item (vi) of paragraph (1) of Article 105 of the Customs Act (Authorities of customs officials)
	taxpayer (when a tax agent acts on behalf of the taxpayer, including the tax agent)	importer
Paragraph (2) of Article 74-9	the District Director of Tax Office, etc.	the Director General of Customs
Paragraph (2) of Article 74-9	taxpayer	importer
Article 74-10	the District Director of Tax Office, etc.	the Director General of Customs
	the taxpayer set forth in item (i) of paragraph (3) of that Article	the importer
	the National Tax Agency, etc. or the customs	the customs
	national taxes	customs duty
Paragraph (1) of Article 74-10	the District Director of Tax Office, etc.	the Director General of Customs
	national taxes	customs duty
	reassessment or determination, etc. (including the notice of tax due provided for in paragraph (1) of Article 36 (Notice of tax due) (limited to the provisions of item (ii)); hereinafter the same applies in this Article)	reassessment, determination or official assessment determination (hereinafter referred to as “reassessment, determination, etc.” in this Article)
	taxpayer (i.e., taxpayer set forth in item (i) of paragraph (3) of Article 74-9 (Advance notice of investigation, etc. to a taxpayer); hereinafter the same applies in this Article)	importer
Paragraph (2) of Article 74-11	national taxes	customs duty
Paragraph (2) of Article 74-11	taxpayer	importer
Paragraph (3) of Article 74-11	taxpayer	importer
	a return form after the due date	special declaration after time limit prescribed in paragraph (1) of Article 7-4 (Special declaration after time limit) of the Customs Act
	tax return form	written declarations pertaining to such declaration
Paragraph (5) of Article 74-11	taxpayer	importer
	filing of a return form after due date or payment of withholding income tax	filing of a written special declaration after time limit as provided for in paragraph (2) of Article 7-4 of the Customs Act
	Articles 74-2 to 74-6 (Right of questioning and inspection of the officials)	item (vi) of paragraph (1) of Article 105 (Authorities of customs officials) of the Customs Act

(Request to government agencies, etc. for cooperation)

Article 105-3.Customs officials, if it is necessary for performing their official duties pursuant to the provisions of this Act, the Customs Tariff Act or other laws concerning customs duty, may request the Government agencies or Government-affiliated agencies to enable them to inspect, or to provide them with books, documents or other materials that may, for reference purposes, be used for performing their duties or to extend other forms of cooperation.

(Authority of the Director General of Customs in special cases)

Article 106.The Director General of Customs, if there are reasonable grounds to believe that it is unavoidably necessary for ensuring the implementation of this Act, may perform the acts as set forth in the following items:

(i)to temporarily suspend loading of goods onto, or unloading of goods from, a vessel, etc. engaged in foreign trade or a vessel or aircraft other than a vessel, etc. engaged in foreign trade, that carries foreign goods on board or to temporarily suspend handling of goods stored in a customs area, or to require any goods to be removed from a customs area within a period to be specified;

(ii)to temporarily postpone departure of a vessel or aircraft or to temporarily suspend its navigation.

(Delegation of authority of the Director General of Customs)

Article 107.The Director General of Customs, pursuant to the provisions of Cabinet Order, may delegate part of the authority to the chiefs of customs branches or of other customs offices.

(Territory deemed to be a foreign country)

Article 108.For the purpose of application of this Act, the territory of Japan prescribed by Cabinet Order is deemed to be a foreign country until otherwise provided for by law.

(Provision of information)

Article 108-2.The Minister of Finance may provide the authorities that enforce foreign laws and regulations (hereinafter referred to as “foreign customs authorities” in this Article and the next Article) equivalent to the customs laws and regulations with information that is found to contribute to execution of their official duties (limited to official duties equivalent to those of the customs as prescribed by the customs laws and regulations; hereinafter the same applies in this Article and the next Article); provided, however, that this does not apply if it is found that provision of such information is likely to cause difficulty in properly enforcing the customs laws and regulations or otherwise to prejudice the interests of Japan.

(2)The Minister of Finance, before providing foreign customs authorities with information provided for in the preceding paragraph, shall confirm the following matters:

(i)that the foreign customs authorities are authorized to provide the customs authorities of Japan with information equivalent to the information provided for in the preceding paragraph;

(ii)that maintenance of confidentiality is secured under the laws and regulations of the foreign countries at the level equivalent to that of Japan with respect to information provided pursuant to the provisions of the preceding paragraph as confidential information;

(iii)that information provided pursuant to the provisions of the preceding paragraph is not used by the foreign customs authorities for the purposes other than for those contributing to the execution of their official duties.

(3)With respect to information provided pursuant to the provisions of paragraph (1), appropriate measures shall be taken so that the information may not be used in criminal proceedings executed by a foreign court or judge (in the next paragraph simply referred to as “criminal proceedings”) without consent prescribed in the next paragraph.

(4)Except in the case falling under any of the following items, the Minister of Finance, if requested by any foreign customs authorities, may give consent to use the information provided pursuant to the provisions of paragraph (1) in criminal proceedings that the request concerns:

(i)if the offense that is subject to the criminal proceedings related to the request is a political crime or if the request is found to have been made for the purpose of conducting criminal proceedings for a political crime;

(ii)if the acts involved in the offense that is subject to criminal proceedings related to the request would not constitute an offense under the laws and regulations of Japan had the acts been committed in Japan;

(iii)if the foreign country that makes the request does not guarantee that it will accept a similar request from Japan.

(5)The Minister of Finance, before giving consent referred to in the preceding paragraph, shall obtain in advance confirmation of the Minister of Justice that items (i) and (ii) of that paragraph are not applicable or confirmation of the Minister of Foreign Affairs that item (iii) of that paragraph is not applicable.

(Attendance)

Article 108-3.If any foreign customs authority requests approval of attendance of its officials at the time when Japanese customs officials make inquiries based on the customs laws and regulations, on the grounds that the officials’ attendance is necessary for the execution of their official duties, the Minister of Finance, if it is found appropriate to accept the request, may approve the attendance; provided, however, that this does not apply if it is found that approval of the attendance is likely to cause trouble to proper enforcement of customs laws and regulations or otherwise to prejudice the interests of Japan or if no consent is obtained from a person to be inquired under Article 105 (Authority of customs officials) (including the cases where applied mutatis mutandis pursuant to other laws concerning customs duty).

(2)The Minister of Finance, before approving attendance of officials of foreign customs authorities as prescribed in the preceding paragraph, shall confirm the matters as set forth in the following:

(i)that the foreign customs authorities may approve the attendance of the officials of the customs authorities of Japan that corresponds to the attendance prescribed in the preceding paragraph;

(ii)that maintenance of confidentiality is secured at the same level as that of Japan under the laws and regulations of the foreign country concerned with respect to the information obtained under the attendance provided for in the preceding paragraph (excluding information already made publicly available).

Chapter 10 Penal Provisions

Article 108-4.A person who export goods set forth in item (i) of paragraph (1) of Article 69-2 (Goods the exportation of which is prohibited) (including a person who reships (excluding reshipment ordered pursuant to the provisions of paragraph (2) of Article 69-11 (Goods the importation of which is prohibited)) foreign goods (excluding goods temporarily landed) from Japan to a foreign country) is punished by imprisonment with work for not more than ten years or a fine not exceeding thirty million yen, or both.

(2)A person who exports goods set forth in items (ii) to (iv) of paragraph (1) of Article 69-2 (including a person who reships (excluding reshipment by a person who may, under other laws and regulations, reship goods set forth in items (iii) and (iv) of that paragraph pursuant to the provisions of the other laws and regulations and reshipment ordered pursuant to the provisions of paragraph (2) of Article 69-11) foreign goods (excluding goods temporarily landed) from Japan to a foreign country) is punished by imprisonment with work for not more than ten years or a fine not exceeding ten million yen, or both.

(3)The preceding two paragraphs also apply to a person who commences the offense referred to in these paragraphs, but does not accomplish it.

(4)A person who prepares with the intention of committing the offense referred to in paragraph (1) is punished by imprisonment with work for not more than five years or a fine not exceeding thirty million yen, or both.

(5)A person who prepares with the intention of committing the offense referred to in paragraph (2) is punished by imprisonment with work for not more than five years or a fine not exceeding five million yen, or both.

Article 109.A person who imports goods set forth in items (i) to (vi) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) is punished by imprisonment with work for not more than ten years or a fine not exceeding thirty million yen, or both.

(2)A person who imports goods set forth in items (vii) to (ix) and (x) of paragraph (1) of Article 69-11 is punished by imprisonment with work for not more than ten years or a fine not exceeding ten million yen, or both.

(3)The preceding two paragraphs also apply to a person who commences the offense referred to in these paragraphs, but does not accomplish it.

Article 109-2.A person who stores goods (limited to those arrived in Japan for purposes other than for importation) set forth in items (i) to (iv), (v)-2 and (vi) of paragraph (1) of Article 69-11 (Goods the importation of which is prohibited) in a customs area in violation of paragraph (2) of Article 30 (Restrictions on places for storage of foreign goods) or transports these goods as foreign goods in violation of Article 65-3 (Goods the transportation of which is not permitted under customs transit) is punished by imprisonment with work for not more than ten years or a fine not exceeding ten million yen, or both.

(2)A person who stores goods set forth in items (viii), (ix) and (x) of paragraph (1) of Article 69-11 (limited to those arrived in Japan for purposes other than for importation; in the case of goods set forth in item (ix) of that paragraph, those that infringe a layout-design exploitation right only are excluded) in a customs area in violation of paragraph (2) of Article 30 or a person who transports these goods as foreign goods in violation of Article 65-3 is punished by imprisonment with work for not more than ten years or a fine not exceeding seven million yen, or both.

(3)The preceding two paragraphs also apply to a person who commences the offense referred to in these paragraphs, but does not accomplish it.

Article 110.A person who falls under any of the following items is punished by imprisonment with work for not more than ten years or a fine not exceeding ten million yen, or both:

(i)a person who, by deception or other wrongful act, evades payment of customs duty or receives refund of customs duty;

(ii)a person who imports goods for which customs duty is to be paid without paying customs duty by deception or other wrongful act.

(2)If, through deception or other wrongful act of a customs broker, customs duty is evaded or refunded or goods for which customs duty is to be paid are imported without paying customs duty, the preceding paragraph also applies to the customs broker who has committed the act.

(3)The preceding two paragraphs also applies to a person who commences the offense referred to in these paragraphs, but does not accomplish it.

(4)If ten times the amount of customs duty or the amount of refund of customs duty, involved in the offense referred to in the preceding three paragraphs exceeds ten million yen, the fine referred to in the preceding three paragraphs may, where circumstances so warrant, be more than ten million yen, but not more than the amount equivalent to ten times the amount of the customs duty or the amount of refund of customs duty.

(5)A person who prepares with the intention of committing the offense referred to in paragraph (1) or (2) is punished by imprisonment with work for not more than five years or a fine not exceeding five million yen, or both.

(6)If ten times the amount of customs duty or the amount of refund of customs duty, involved in the offense referred to in the preceding paragraph exceeds five million yen, the fine prescribed in the preceding paragraph may, where circumstances so warrant, be more than five million yen, but not more than the amount equivalent to ten times the amount of the customs duty or the amount of refund of customs duty.

Article 111.A person who falls under any of the following items is punished by imprisonment with work for not more than five years or a fine not exceeding ten million yen, or both; provided, however, that if five times the value of goods involved in the offense exceeds ten million yen, the fine is not to be more than five times that value:

(i)a person who, without permission, exports (including reshipment of foreign goods (excluding goods temporarily landed) from Japan to a foreign country; the same applies in the next item and the next paragraph) or imports goods that require permission referred to in Article 67 (Export or import permission) (including the cases where applied mutatis mutandis pursuant to Article 75 (Reshipment of foreign goods); the same applies in the next item and the next paragraph);

(ii)a person who exports or imports goods by making a false declaration or a false certification or by submitting false documents, at the time of declaration or inspection referred to in Article 67.

(2)If goods are exported or imported, based on a false declaration or a false certification made, or false documents submitted by a customs broker at the time of declaration or inspection referred to in Article 67, the preceding paragraph also applies to the customs broker.

(3)The preceding two paragraphs also applies to a person who commences the offense referred to in these paragraphs, but does not accomplish it.

(4)A person who prepares with the intention of committing the offense referred to in paragraph (1) or (2) is punished by imprisonment with work for not more than three years or a fine not exceeding five million yen, or both; provided, however, that if five times the value of goods involved in the offense exceeds five million yen, the fine is not to be more than five times that value.

Article 112.A person who knowingly transports, retains, acquires with or without compensation, or mediates or arranges disposal of goods involved in the offense referred to in paragraph (1) or (2) of Article 108-4 (Offense of exporting goods the exportation of which is prohibited), paragraph (1) or (2) of Article 109 (Offense of importing goods the importation of which is prohibited), paragraph (1) or (2) of Article 109-2 (Offense of storing in a customs area goods the importation of which is prohibited, etc.) or paragraph (1) of Article 110 (Offense of evading customs duty, etc.) (hereinafter these acts are referred to as “transportation, etc.” in this Article) is punished by imprisonment with work for not more than five years or a fine not exceeding five million yen, or both.

(2)If five times the amount of customs duty or the amount of refund of customs duty, involved in the offense referred to in paragraph (1) of Article 110 that is connected with the goods involved in the offense referred to in the preceding paragraph exceeds five million yen, the fine referred to in the preceding paragraph may, where circumstances so warrant, be more than five million yen, but not more than the amount equivalent to five times the amount of the customs duty or amount of refund of customs duty.

(3)A person who knowingly carries out transportation, etc. of goods involved in the offense referred to in paragraph (1) of the preceding Article is punished by imprisonment with work for not more than three years or a fine not exceeding five million yen, or both; provided, however, that if three times the value of goods involved in the offense exceeds five million yen, the fine is not to be more than three times the value.

Article 112-2.A person who violates paragraph (6) of Article 13 (Uses for purposes other than for those intended, etc.) of the Customs Tariff Act (including the cases where applied mutatis mutandis pursuant to paragraph (2) of Article 19 of that Act) or paragraph (2) of Article 20-2 (Uses for purposes other than for those intended, etc.) of that Act, is punished by imprisonment with work for not more than one year or a fine not exceeding two million yen.

Article 113.A master of a vessel or a captain of an aircraft (including a person acting for a master or captain; hereinafter the same applies in paragraph (1) of Article 114 and paragraph (1) of Article 115 (Offense of failing to make a report, etc.)) who brings a vessel, etc. engaged in foreign trade into or out of a closed port in violation of paragraph (1) of Article 20 (Entry into, or departure from a closed port) is punished by imprisonment with work for not more than three years or a fine not exceeding three million yen.

Article 113-2.A person who fails to file a written special declaration within the time limit for filing without legitimate grounds is punished by imprisonment with work for not more than one year or a fine not exceeding two million yen; provided, however, that the person may be exempted from the punishment where circumstances so warrant.

Article 114.A person who falls under any of the following items is punished by imprisonment with work for not more than one year or a fine not exceeding five hundred thousand yen:

(i)a master of a vessel or a captain of an aircraft who brings a vessel or aircraft into a port without making a report prescribed in paragraph (1), (4) or (9) of Article 15 (Procedures for entry into a port) or by making a false report;

(ii)a master of a vessel or a captain of an aircraft who fails to submit documents prescribed in paragraph (2), (5) or (10) of Article 15 or submits false documents;

(iii)a master of a vessel who fails to submit an entrance notice or vessel’s stores manifest provided for in paragraph (3) of Article 15 in violation of that paragraph or submits a false entrance notice or a false vessel’s store manifest;

(iv)a master of a vessel who, in violation of paragraph (3) of Article 15, fails to present a certificate of vessel’s country of registry or a document issued in lieu thereof, as provided for in that paragraph;

(v)a captain of an aircraft who, in violation of paragraph (11) of Article 15, fails to submit an entrance notice provided for in that paragraph or submits a false entrance notice;

(vi)a master of a vessel or a captain of an aircraft who brings a vessel or aircraft out of an open port or a customs airport without permission prescribed in the first sentence of paragraph (1) of Article 17 (Procedures for departure from a port);

(vii)a master of a vessel or a captain of an aircraft who fails to respond to the request for submission of documents prescribed in the second sentence of paragraph (1) of Article 17 or submits false documents;

(viii)a master of a vessel who brings a vessel out of a port without submitting an entrance notice provided for in paragraph (2) of Article 18 (Simplified procedures for entry into, or departure from a port) in violation of that paragraph or submits a false entrance notice, or a captain of an aircraft who, in violation of paragraph (4) of that Article, brings an aircraft out of an airport without issuing a notification prescribed in that paragraph or issues a false notification;

(ix)a captain of an aircraft who brings the aircraft into an airport without making a report prescribed in the proviso to paragraph (3) of Article 18 or by making a false report;

(x)a captain of an aircraft who fails to submit documents prescribed in the proviso to paragraph (3) or paragraph (4) of Article 18 or submits false documents;

(xi)a master of a vessel or a captain of an aircraft who fails to issue a notification prescribed in paragraph (2) of Article 20 (Entry into, or departure from a closed port);

(xii)a master of a vessel or a captain of an aircraft who fails to issue a notification prescribed in Article 21 (Temporary landing of foreign goods) or issues a false notification;

(xiii)a master of a vessel or a captain of an aircraft who fails to issue a notification prescribed in Article 22 (Notification, etc. of a call at a foreign port of a coastal vessel, etc.) or fails to submit a manifest provided for in that Article;

(xiv)a master of a vessel or a captain of an aircraft who fails to issue a notification or issues a false notification in violation of paragraph (1) of Article 25 (Change in status of a vessel or aircraft) and uses a vessel or aircraft other than a vessel, etc. engaged in foreign trade as a vessel, etc. engaged in foreign trade, or uses a vessel, etc. engaged in foreign trade as a vessel or aircraft other than a vessel, etc. engaged in foreign trade.

(2)When, pursuant to the provisions of Article 26 (Acting for a master or captain), the acts to be performed by a master or captain of a vessel, etc. engaged in foreign trade are performed by an owner, etc. of that vessel, etc. (i.e., an owner, etc. provided for in that Article), if the owner, etc. falls under any of the following items, the owner, etc. is punished by imprisonment with work for not more than one year or a fine not exceeding five hundred thousand yen:

(i)an owner, etc. who makes a false report with respect to the report prescribed in paragraph (1), (4) or (9) of Article 15 (only when a vessel, etc. engaged in foreign trade related to the report enters an open port or a customs airport);

(ii)an owner, etc. who submits false documents with respect to the documents prescribed in paragraph (2), (5) or (10) of Article 15;

(iii)an owner, etc. who submits a false entrance notice or a false vessel’s stores manifest with respect to the entrance notice or vessel’s stores manifest provided for in paragraph (3) of Article 15;

(iv)an owner, etc. who submits a false entrance notice with respect to the entrance notice provided for in paragraph (11) of Article 15;

(v)an owner, etc. who submits false documents with respect to the documents prescribed in the second sentence of paragraph (1) of Article 17;

(vi)an owner, etc. who submits a false entrance notice with respect to the entrance notice provided for in paragraph (2) of Article 18 or issues a false notification with respect to the notification prescribed in paragraph (4) of that Article;

(vii)an owner, etc. who makes a false report with respect to the report prescribed in the proviso to paragraph (3) of Article 18 (only when an aircraft engaged in foreign trade related to the report enters a customs airport);

(viii)an owner, etc. who submits false documents with respect to the documents prescribed in the proviso to paragraph (3) or paragraph (4) of Article 18;

(ix)an owner, etc. who issues a false notification with respect to the notification prescribed in Article 21;

(x)an owner, etc. who issues a false notification with respect to the notification prescribed in paragraph (1) of Article 25 (only when a vessel or aircraft other than a vessel, etc. engaged in foreign trade related to that notification is used as a vessel, etc. engaged in foreign trade or a vessel, etc. engaged in foreign trade, related to that notification is used as a vessel or aircraft other than a vessel, etc. engaged in foreign trade).

Article 114-2.A person who falls under any of the following items is punished by imprisonment with work for not more than one year or a fine not exceeding five hundred thousand yen:

(i)a person who fails to make a report prescribed in paragraph (7), (8) or (13) of Article 15 (Procedures for entry into a port) or makes a false report;

(ii)a person who fails to make a report prescribed in paragraph (2) of Article 15-2 (Reporting on matters concerning cargoes) or makes a false report;

(iii)a person who loads or unloads goods without making a report prescribed in paragraph (1) of Article 16 (Loading or unloading of goods) and without submitting documents, or by making a false report or submitting false documents, or a person who loads or unloads goods without submitting documents prescribed in paragraph (2) of that Article or by presenting false documents;

(iv)a person who, in violation of paragraph (3) of Article 16, unloads cargoes without permission prescribed in the proviso to that paragraph;

(v)a person who fails to make a report prescribed in paragraph (4) of Article 17 (Procedures for departure from a port) or makes a false report;

(vi)a person who fails to make a report prescribed in paragraph (4) of Article 20 (Entry into, or departure from a closed port) or makes a false report;

(vii)a person who loads vessel’s or aircraft’s stores in violation of paragraph (1) or (2) of Article 23 (Loading, etc. of vessel’s or aircraft’s stores);

(viii)a person who fails to submit documents prescribed in the main clause of paragraph (5) of Article 23 or submits false documents;

(ix)a person who traffics, or loads or unloads goods in violation of paragraph (1), (2) or (4) of Article 24 (Traffic, etc. between vessels or aircraft and land);

(x)a person who transports foreign goods in violation of paragraph (1) or (3) of Article 63 (Customs transit), paragraph (1) or (2) of Article 63-2 (Special provisions for customs transit) or paragraph (1) or (2) of Article 63-9 (Customs transit of postal items);

(xi)a person who fails to obtain confirmation prescribed in the main clause of paragraph (5) of Article 63, paragraph (3) of Article 63-2 or paragraph (3) of Article 63-9;

(xii)a person who transports, in violation of paragraph (1) of Article 64 (Transportation of wreckage, etc.), foreign goods set forth in the items of that paragraph, or a person who fails to submit documents in violation of paragraph (3) of that Article;

(xiii)a person who transports domestic goods on board a vessel, etc. engaged in foreign trade from one place to another in Japan in violation of paragraph (1) of Article 66 (Transportation of domestic goods) or who fails to submit documents in violation of paragraph (2) of that Article;

(xiv)a person who gives a false proof at the time of the inspection referred to in the proviso to paragraph (1) of Article 76 (Simplified export or import procedures for postal items) or other customs examination of postal items;

(xv)a person who fails to make a report prescribed in paragraph (2) of Article 77-5 (Rectification of illegal acts, etc.) or makes a false report;

(xvi)a person who does not respond to questioning by customs officials prescribed in paragraph (1) of Article 105 (Authority of customs officials) or makes a false statement, or refuses, interferes with or evades the execution of the official duties;

(xvii)a person who refuses, without legitimate grounds, the request to present or submit items prescribed in item (iv)-2 or (vi) of paragraph (1) of Article 105, or presents or submits books and documents or other items (including copies thereof) containing false statements or records;

(xviii)a person who refuses, interferes with or evades the execution of disposition of the Director General of Customs prescribed in Article 106 (Authority of the Director General of Customs in special cases) (including a person to whom part of the authority is delegated pursuant to the provisions of Article 107 (Delegation of authority of the Director General of Customs)).

Article 115.A person who falls under any of the following items is punished by imprisonment with work for not more than one year or a fine not exceeding three hundred thousand yen:

(i)a master of a vessel or a captain of an aircraft who brings a vessel or aircraft into a port, without making a report prescribed in paragraph (1) of Article15-3 (Procedures for entry into a port of special vessels, etc.) or by making a false report;

(ii)a master of a vessel or a captain of an aircraft who fails to submit documents prescribed in paragraph (2) of Article 15-3 or submits false documents;

(iii)a master of a vessel or a captain of an aircraft who, in violation of paragraph (3) of Article 15-3, fails to submit an entrance notice provided for in that paragraph or submits a false entrance notice;

(iv)a master of a vessel or a captain of an aircraft who, in violation of the first sentence of paragraph (1) of Article 17-2 (Procedures for departure from a port of special vessels, etc.), brings a vessel or aircraft out of a port without submitting a clearance notice provided for in that paragraph or by submitting a false clearance notice;

(v)a master of a vessel or a captain of an aircraft who fails to respond to the request for submitting a document prescribed in the second sentence of paragraph (1) of Article 17-2 or submits a false document;

(vi)a master of a vessel or a captain of an aircraft who brings a vessel or aircraft into a port, without making a report prescribed in the proviso to paragraph (1) or the proviso to paragraph (3) of Article 18-2 (Simplified procedures for entry into, or departure from a port, of special vessels, etc.) or by making a false report;

(vii)a master of a vessel or a captain of an aircraft who fails to submit documents prescribed in the proviso to paragraph (1), paragraph (2), the proviso to paragraph (3) or paragraph (4) of Article 18-2 or submits false documents;

(viii)a master of a vessel who, in violation of paragraph (2) of Article 18-2, brings a vessel out of a port without submitting an entrance notice provided for in that paragraph or submits a false entrance notice, or a captain of an aircraft who, in violation of paragraph (4) of that Article, brings an aircraft out of an airport without issuing a notification prescribed in that paragraph or by issuing a false notification;

(ix)a master of a vessel or a captain of an aircraft who brings a vessel or aircraft into a port, without making a report prescribed in paragraph (1) of Article 20-2 (Entry into, or departure from a closed port of special vessels, etc.) or by making a false report;

(x)a master of a vessel or a captain of an aircraft who fails to submit documents prescribed in paragraph (2) of Article 20-2 or submits false documents;

(xi)a master of a vessel or a captain of an aircraft who, in violation of paragraph (3) of Article 20-2, fails to submit an entrance notice provided for in that paragraph or submits a false entrance notice;

(xii)a master of a vessel or a captain of an aircraft who, in violation of the first sentence of paragraph (4) of Article 20-2, brings a vessel or aircraft out of a port without submitting a clearance notice provided for in that paragraph or by submitting a false clearance notice;

(xiii)a master of a vessel or a captain of an aircraft who fails to respond to the request for submitting a document prescribed in the second sentence of paragraph (4) of Article 20-2 or submits a false document;

(xiv)a master of a vessel or a captain of an aircraft who uses a coastal vessel, etc. as a special vessel, etc. or uses a special vessel, etc. as a coastal vessel, etc. without issuing a notification in violation of paragraph (2) of Article 25 (Change in status of a vessel or aircraft) or by issuing a false notification.

(2)When the acts required to be performed by a master or captain of a special vessel, etc. under Article 26 (Acting for a master or captain) are performed by an owner, etc. of the special vessel, etc. (i.e., an owner, etc. as provided for in that Article), if the owner, etc. falls under any of the following items, the owner, etc. is punished by imprisonment with work for not more than one year or a fine not exceeding three hundred thousand yen:

(i)an owner, etc. who makes a false report with respect to the report prescribed in paragraph (1) of Article 15-3 (only when a special vessel, etc. related to the report enters an open port or a customs airport);

(ii)an owner, etc. who submits false documents with respect to the documents prescribed in paragraph (2) of Article 15-3;

(iii)an owner, etc. who submits a false entrance notice with respect to the entrance notice provided for in paragraph (3) of Article 15-3;

(iv)an owner, etc. who submits a false clearance notice with respect to the clearance notice provided for in the first sentence of paragraph (1) of Article 17-2;

(v)an owner, etc. who submits a false document with respect to the document provided for in the second sentence of paragraph (1) of Article 17-2;

(vi)an owner, etc. who makes a false report with respect to the report prescribed in the proviso to paragraph (1) or the proviso to paragraph (3), of Article 18-2 (only when a special vessel, etc. related to that report enters an open port or a customs airport);

(vii)an owner, etc. who submits false documents with respect to the documents prescribed in the proviso to paragraph (1), paragraph (2), the proviso to paragraph (3) or paragraph (4), of Article 18-2;

(viii)an owner, etc. who submits a false entrance notice with respect to the entrance notice provided for in paragraph (2) of Article 18-2 or makes a false notification with respect to the notification prescribed in paragraph (4) of that Article;

(ix)an owner, etc. who makes a false report with respect to the report prescribed in paragraph (1) of Article 20-2 (only when a special vessel, etc. related to the report enters a closed port);

(x)an owner, etc. who submits false documents with respect to the documents prescribed in paragraph (2) of Article 20-2;

(xi)an owner, etc. who submits a false entrance notice with respect to the entrance notice provided for in paragraph (3) of Article 20-2;

(xii)an owner, etc. who submits a false clearance notice with respect to the clearance notice provided for in the first sentence of paragraph (4) of Article 20-2;

(xiii)an owner, etc. who submits false documents with respect to the documents prescribed in the second sentence of paragraph (4) of Article 20-2;

(xiv)an owner, etc. who issues a false notification with respect to the notification prescribed in paragraph (2) of Article 25 (only when a coastal vessel, etc. is used as a special vessel, etc. or a special vessel, etc. is used as a coastal vessel, etc.).

Article 115-2.A person who falls under any of the following items is punished by imprisonment with work for not more than one year or a fine not exceeding three hundred thousand yen:

(i)a person who, in violation of paragraph (1) of Article 7-9 (Keeping of books, etc. by an authorized importer), paragraph (1) of Article 67-8 (Keeping of books, etc. by an authorized exporter) or paragraph (1) of Article 94 (Keeping of books, etc.) (including the cases where applied mutatis mutandis pursuant to paragraph (2) of that Article), fails to enter in, makes a false statement in or conceals, books relating to special imports and customs duty, books relating to specific exports and customs duty or books relating to customs duty;

(ii)a person who fails to make a report prescribed in paragraph (5) of Article 15-3 (Procedures for entry into a port of special vessels, etc.) or makes a false report;

(iii)a person who fails to make a report prescribed in paragraph (3) of Article 17-2 (Procedures for departure from a port of special vessels, etc.) or makes a false report;

(iv)a person who, in violation of Article 19 (Loading or unloading of goods outside office hours), fails to issue a notification, or loads or unloads goods by issuing a false notification;

(v)a person who fails to make a report prescribed in paragraph (6) of Article 20-2 (Entry into, or departure from a closed port of special vessels, etc.) or makes a false report;

(vi)a person who, in violation of Article 32 (Temporary taking out of samples) (including the cases where applied mutatis mutandis pursuant to paragraph (1) of Article 36 (Mutatis mutandis application of the provisions concerning a customs area, etc.)), temporarily takes out foreign goods as samples without permission;

(vii)a person who, in violation of Article 34-2 or Article 61-3 (Obligation of record keeping) (including the cases where applied mutatis mutandis pursuant to Article 62-7 (Mutatis mutandis application of provisions on a customs warehouse and customs factory), fails to enter in books, makes a false statement in books or conceals books;

(viii)a person who, in violation of paragraph (2) of Article 36, performs inspection, repacking, sorting or other handling operations of goods;

(ix)a person who performs acts other than those permitted to be performed in a designated customs area or a customs warehouse pursuant to the provisions of paragraph (1) or (2) of Article 40 (Handling of goods) (including the cases where applied mutatis mutandis pursuant to Article 49 (Mutatis mutandis application of provisions on a designated customs area)) on foreign goods or goods that the person seeks to export;

(x)a person who, in violation of paragraph (1) of Article 61 (Operations under customs procedures performed outside a customs factory) (including the cases where applied mutatis mutandis pursuant to Article 62-15 (Mutatis mutandis application of provisions on a customs warehouse, customs factory and customs exhibition site)), brings, without permission, foreign goods out of a customs factory or integrated customs area for operations under customs procedures;

(xi)a person who, in violation of paragraph (1) of Article 43-3 (Approval for storage of foreign goods), as applied mutatis mutandis pursuant to Article 61-4 (Mutatis mutandis application of provisions on customs warehouses) or Article 62-10 (Approval for storage, etc. of foreign goods), uses foreign goods for operations under customs procedures or who performs the acts set forth in item (ii) or (iii) of paragraph (1) of Article 62-8 (Permission of an integrated customs area), without obtaining approval;

(xii)a person who performs acts other than those permitted to be performed in a customs exhibition site or an integrated customs area on foreign goods pursuant to the provisions of paragraph (3) of Article 62-2 (Permission of a customs exhibition site) or paragraph (1) of Article 62-8;

(xiii)a person who fails to make a declaration prescribed in paragraph (1) of Article 62-3 (Procedures for bringing foreign goods into a customs exhibition site), makes a false declaration or performs, without obtaining approval of the Director General of Customs referred to in that paragraph, the acts referred to in paragraph (3) of Article 62-2 (excluding acts deemed to be permitted pursuant to the provisions of paragraph (4) of Article 62-3);

(xiv)a person who, in violation of paragraph (1) of Article 62-4 (Restrictions, etc. on places for storage of goods for sale, etc.) (including the cases where applied mutatis mutandis pursuant to Article 62-15), stores goods referred to in that paragraph in a place other than restricted places, fails to respond to the request for reporting as prescribed in that paragraph or makes a false report;

(xv)a person who, in violation of Article 62-5 (Permission for use outside a customs exhibition site) (including the cases where applied mutatis mutandis pursuant to Article 62-15), brings foreign goods out of a customs exhibition site or an integrated customs area for use at a place other than a customs exhibition site or integrated customs area without permission;

(xvi)a person who brings foreign goods provided for in Article 62-11 (Notification of bringing goods for sale, etc.) into an integrated customs area, without issuing a notification prescribed in that Article or by issuing a false notification.

Article 115-3.A person who divulges any secrecy in violation of paragraph (1) of Article 69-21 (Technical advisers) is punished by imprisonment with work for not more than six months or a fine not exceeding five hundred thousand yen.

Article 116.A person who, due to gross negligence, commits an offense prescribed in item (ii) of paragraph (1) of Article 111 (Offense of exporting or importing goods without permission, etc.), Article 113 (Offense of entering, or departing from a closed port without permission), Article 114, Article 114-2 (excluding items (xvi) and (xvii)), Article 115 (Offense of failure to make a report, etc.) or Article 115-2 (excluding items (i), (vii) and (xvi)) (Offense of failure to enter in books, etc.) is punished by a fine as prescribed respectively in these Articles.

Article 117.If a representative of a juridical person or an agent, worker or other employee of a juridical person or of an individual has committed, with respect to business or property of the juridical person or individual, an offense falling under Articles 108-4 to 112 (Offense of exporting goods the exportation of which is prohibited; Offense of importing goods the importation of which is prohibited; Offense of storing in a customs area, etc. goods the importation of which is prohibited; Offense of evading customs duty, etc.; Offense of exporting or importing goods without permission, etc.; Offense of transporting smuggled goods, etc.), Article 112-2 (Offense of using goods for purposes other than for intended purpose), Article 113-2 (Offense of failure to file a written special declaration before time limit for filing), Article 114-2 (Offense of failure to make a report, etc.), Article 115-2 (Offense of failure to enter in books, etc.) or the preceding Article (excluding an offense under Article 113 (Offense of entering or departing from a closed port without permission), Articles 114 and 115 (Offense of failure to make a report, etc.)), not only is the offender punished, but also the juridical person or individual is punished by a fine as prescribed respectively in these Articles.

(2)The period of prescription when a fine is imposed, pursuant to the provisions of the preceding paragraph, on a juridical person or an individual for having committed the offense referred to in Articles 108-4 to 109-2, paragraph (1) to (3) or (5) of Article 110 or paragraphs (1) to (3) of Article 111 or paragraph (1) of Article 112 is the period of prescription applicable to the offenses referred to in these provisions.

(3)An association without legal personality, etc. (i.e., an association or foundation that is not a juridical person and has a provision for its representative or manager; the same applies in the next paragraph) is deemed to be a juridical person and the preceding two paragraphs apply accordingly.

(4)When paragraph (1) applies to an association without legal personality, etc., its representative or manager represents the association without legal personality, etc. for its judicial proceedings, and the provisions of laws concerning criminal procedures where a juridical person stands as the accused or suspect apply mutatis mutandis.

Article 118.Goods involved in the offenses referred to in Articles 108-4 to 111 (Offense of exporting goods the exportation of which is prohibited; Offense of importing goods the importation of which is prohibited; Offense of storing in a customs area, etc. goods the importation of which is prohibited; Offense of evading customs duty, etc.; Offense of exporting or importing goods without permission, etc.) (in the case of goods involved in the offense referred to in Article 110 or 111, limited to import-restricted goods, etc.), a vessel or aircraft used for such offenses or goods involved in the offense referred to in Article 112 (Offense of transporting smuggled goods, etc.) (limited to goods involved in the offense referred to in Article 108-4 or 109 and import-restricted goods, etc.) (hereinafter in this Article collectively referred to as “goods involved in offense, etc.”) is to be confiscated; provided, however, that this does not apply if goods involved in offense, etc. are owned by a person other than the offender and the person falls under any of the following items:

(i)when it is found that the person, without knowing in advance commitment of offense referred to in Articles 108-4 to 112, has continuously possessed the goods involved in offense, etc. since the offense was committed;

(ii)when it is found that the person unknowingly acquired goods involved in offense, etc. after the offense set forth in the preceding item was committed.

(2)If goods involved in offense, etc. (excluding a vessel or aircraft referred to in the preceding paragraph; hereinafter the same applies in this paragraph) that are to be confiscated pursuant to the provisions of the preceding paragraph cannot be confiscated or if they are not confiscated pursuant to the provisions of item (ii) of that paragraph (in both cases, if the offense is related to that referred to in Article 112 (Offense of transporting smuggled goods, etc.), limited to an offense that involves acquisition of goods referred to in paragraph (1) or (3) of Article 112), an amount equivalent to the value of goods (i.e., the value at the time when the offense was committed) that cannot be confiscated or that are not confiscated is to be collected from the offender.

(3)The term “import-restricted goods, etc.” as used in paragraph (1) means goods for import that fall under one of the following items at the time when the offense referred to in that paragraph was committed with respect to the goods:

(i)goods set forth in the following:

(a)liquors provided for in paragraph (1) of Article 2 (Definitions) of the Liquor Tax Act (Act No. 6 of 1953);

(b)manufactured tobacco provided for in item (iii) of Article 2 (Definitions) of the Tobacco Industry Act (Act No. 68 of 1984) (including substitutes for manufactured tobacco provided for in paragraph (2) of Article 38 (Substitutes for manufactured tobacco) of that Act);

(c)state monopoly goods;

(ii)goods falling under the category of non-liberalized import items, other than those falling under the preceding item (“non-liberalized import items” means those items for which an import quota is required to be allocated pursuant to the provisions of the Foreign Exchange and Foreign Trade Act and the order based on that Act) (excluding goods to which an import license referred to in Article 52 (Import license) of that Act is given, goods the importation of which is permitted without the license, goods imported as accompanied goods by a person at the time of entry into Japan or imported as unaccompanied goods pursuant to the provisions of Cabinet Order and postal items).

(4)If goods involved in offense, etc. are confiscated or additional collection is made in lieu thereof pursuant to the provisions of paragraphs (1) and (2), customs duty is not levied on these goods.

(5)When goods involved in offense, etc. are not confiscated pursuant to the provisions of item (i) of paragraph (1), if customs duty is to be collected, it is immediately collected from the owner of the goods; provided, however, that if they are brought into a customs area as foreign goods within the period specified by the Director General of Customs, they are deemed not to have been imported.

(6)When the offense referred to in Article 112 (Offense of transporting smuggled goods, etc.) is committed with respect to goods for which customs duty is to be paid (only when paragraph (3) of Article 97 (Collection of customs duty on lost goods, etc.) or paragraphs (4) to (6) of Article 134 (Collection of customs duty on retained items, etc.) are not applicable), if the goods involved in offense, etc. do not fall under paragraph (2) and a person who imported the goods is unknown, customs duty is immediately collected from the offender involved in the offense.

(7)Paragraph (4) of Article 97 (Adjustment of procedures for official assessment) applies mutatis mutandis to the case of paragraph (5). In this case, the term “possessed by a person who makes a disposition referred to in that paragraph” in paragraph (4) of Article 97 is deemed to be replaced with “retained or seized”.

Chapter 11 Investigation and Disposition of Criminal Cases

Section 1 Investigation of Criminal Cases

(Questioning, inspection, retention, etc.)

Article 119.A customs official, if it is necessary for investigating a criminal case, may request appearance of a criminal suspect or a witness (hereinafter in this paragraph and paragraph (1) of Article 121 (On-site inspection, search, seizure, etc.) referred to as “criminal suspect, etc.”), question a criminal suspect, etc., inspect any items possessed or abandoned by a criminal suspect, etc., or retain any items voluntarily submitted or abandoned by a criminal suspect, etc.

(2)A customs official may request public agencies or public or private organizations to report on necessary matters for investigating a criminal case.

(Request for disclosure)

Article 120.A customs official, if a person is found to conceal around that person any items sufficient to substantiate the fact of criminal offense, may request that person to disclose these items.

(On-site inspection, search, seizure, etc.)

Article 121.A customs official, if it is necessary for investigating a criminal case, may, under a permit issued in advance by a judge of a district court or summary court having jurisdiction over the location of the office of the customs official, conduct on-site inspection, search of the body, items, residence or other places, of a criminal suspect, etc., seizure of items of evidence or items considered to be confiscated, or seizure of records created under copying order (i.e., seizure of recording medium on which necessary electronic or magnetic records are ordered to be recorded or printed by a person who stores electronic or magnetic records or otherwise is authorized to use the records; hereinafter the same applies); provided, however, that the body, items, residence or other places, of a witness may be searched only when the situation warrants that items to be seized are reasonably supposed to be located.

(2)When an item to be seized is a computer, if a recording medium connected via telecommunication line to that computer may reasonably be supposed to have been used to store electronic or magnetic records, which have been created or altered using the computer or may be altered or erased using the computer, the computer or other recoding media, after copying the electronic or magnetic records stored on the recording medium onto that computer or other recording medium, may be seized.

(3)In the cases referred to in the preceding two paragraphs, customs officials may, in case of urgency, make a disposition referred to in these paragraphs under a permit issued in advance by a judge of a district court or summary court having jurisdiction over the items or places to be on-site inspected, the person, items or places to be searched, the items to be seized or the domicile of a person to be ordered to record or print electronic or magnetic records.

(4)If a customs official requests a permit referred to in paragraph (1) or the preceding paragraph (hereinafter referred to as “permit”, except in Article 136 (Commissioning, etc. of expert opinions)), the customs official shall submit materials deemed to substantiate a criminal case.

(5)When a request referred to in the preceding paragraph is made, a judge of a district court or summary court shall issue to a customs official a permit, signed and sealed by the judge, specifying the name of a criminal suspect (or, with respect to a juridical person, its name), charged offense, items or place to be inspected, the person, items or places to be searched, items to be seized, the electronic or magnetic record to be recorded or printed, the name of a person ordered to record or print the record and the name and official post of the requester, the valid period, the fact that the permit may not be executed after expiry of its valid period and shall be returned to the court, the date of issuance and the name of the court.

(6)In the case referred to in paragraph (2), the permit shall, in addition to the matters prescribed in the preceding paragraph, specify the scope of the electronic or magnetic records to be copied from the recording medium connected via telecommunication line to the computer to be seized.

(7)A customs official may deliver the permit to any other customs official and have the other customs official conduct on-site inspection, search, seizure or seizure of records created under copying order.

(Seizure against a person handling communication services)

Article 122.A customs official, when it is necessary for investigating a criminal case, may seize, upon receipt of a permit, postal items, postal correspondence or documents relating to telegrams, sent by or to a criminal suspect and stored or possessed by a person who handles communication services in accordance with the provisions of relevant laws and regulations.

(2)With respect to postal items, postal correspondence or documents relating to telegrams that do not fall under the preceding paragraph and are stored or possessed by a person handling communication services in accordance with the provisions of relevant laws and regulations, a customs official may, upon receipt of a permit, seize these items only when they are reasonably supposed to be related to a criminal case.

(3)If the disposition prescribed in the preceding two paragraphs has been taken, a customs official shall notify the addressor or addressee of the disposition; provided, however, that this does not apply if the notification is likely to hinder the investigation of a criminal case.

(Request for preservation of electronic or magnetic records of communication history)

Article 123.A customs official, if it is necessary for conducting seizure or seizure of records created under copying order, may request in writing a person who is engaged in the business of providing facilities for telecommunication used for communication by any other person or who has established, for the person’s own business, equipment for telecommunication for use as a means of communication among unspecified or numerous persons, not to erase the electronic or magnetic record of the transmission source, its destination, the date and time of communication or other communication history, by specifying the necessary scope of the records and the period not exceeding thirty days. In this case, if it has been found that seizure of the electronic or magnetic record or seizure of records created under copying order is no longer deemed necessary, the request shall be revoked.

(2)The period during which the request is made not to erase the records as provided for in the preceding paragraph may, if it is particularly necessary, be extended for a period not exceeding thirty days; provided, however, that the total period during which the request is made not to erase the records may not exceed sixty days.

(3)When the request prescribed in paragraph (1) is made, a customs official, if it is necessary to do so, may request any person concerned not to divulge any matters relating to the request without reason.

(On-site inspection, search or seizure at the scene of offense)

Article 124.When an offense is being committed or has just been committed, a customs official may conduct on-site inspection, search or seizure referred to in paragraph (1) of Article 121 (On-site inspection, search, seizure, etc.) at the scene of the offense if it is necessary in order to gather what is supposed to serve as evidence and if the official is unable to receive a permit due to the urgency required.

(2)When a person is found to possess items actually used in an offense or obtained in connection with an offense or when there are notable traces of an offense and a person can clearly be found to have just committed the offense, if it is necessary for a customs official to do so in order to gather what is supposed to serve as evidence and if the customs official cannot receive a permit due to the urgency required, the customs official may conduct on-site inspection, search or seizure referred to in paragraph (1) of Article 121 for the items in that person’s possession.

(Disposition taken in lieu of seizure of recording medium containing electronic or magnetic record)

Article 125.If an item to be seized is a recording medium containing electronic or magnetic record, a customs official may make any of the following dispositions in lieu of seizure of the item:

(i)after having copied, printed or transmitted electronic or magnetic record contained in the recording medium to be seized onto other recording medium, to seize the other recording medium;

(ii)after having had a person subject to seizure copy, print or transmit the electronic or magnetic record contained in the recording medium to be seized onto other recording medium, to seize the other recording medium.

(Necessary disposition at the time of on-site inspection, search, seizure, etc.)

Article 126.A customs official, if it is necessary in order to conduct on-site inspection, search, seizure or seizure of records created under copying order, may release a lock, open a seal or make other necessary dispositions.

(2)The dispositions referred to in the preceding paragraph may also be taken with respect to retained items, seized items or seized records created under copying order.

(Request for cooperation from a person subject to disposition)

Article 127.If an item to be inspected on-site or to be seized is a recording medium containing an electronic or magnetic record, a customs official may request a person subject to on-site inspection, search or seizure to operate a computer and to provide any other necessary cooperation.

(Presentation of permit)

Article 128.A permit for on-site inspection, search, seizure or seizure of records created under copying order shall be presented to a person subject to the disposition.

(Proof of identity)

Article 129.A customs official, when conducting any questioning, inspection, retention, on-site inspection, search, seizure or seizure of records created under copying order or when requesting disclosure, pursuant to the provisions of this Section, shall carry a certificate for identification and present it to any person concerned if requested.

(Assistance from police officials, etc.)

Article 130.A customs official, if it is necessary in the course of conducting on-site inspection, search, seizure or seizure of records created under copying order, may request assistance from police officials or coast guard officials.

(Attendance of owners, etc.)

Article 131.A customs official, when conducting on-site inspection, search, seizure or seizure of records created under copying order at a place including a residence of a person, premise or building guarded by another person, or on a vessel, aircraft, vehicle or in a warehouse, shall have its owner or administrator (including the representative, agent or any other person who acts on their behalf) or an employee or adult relative living together, of the owner or administrator attend the on-site inspection, search or seizure.

(2)In the case referred to in the preceding paragraph, if any person provided for in that paragraph is unable to attend, a customs official shall have a neighbor of adult age, a police official or an official of local public entity attend the on-site inspection, search or seizure.

(3)When conducting on-site inspection, search or seizure pursuant to the provisions of Article 124 (On-site inspection, search or seizure at the scene of offense), the inspection, search or seizure, in the case urgency, is not required to be conducted pursuant to the provisions of the preceding two paragraphs.

(4)A customs official, when searching the body of a woman, shall have another woman of adult age attend the search; provided, however, that this does not apply in case of urgency.

(Preparation, etc. of retention inventory, etc.)

Article 132.A customs official, when having conducted retention, seizure or seizure of records created under copying order, shall prepare an inventory and deliver a certified copy thereof to a person who owns, possesses or stores (including a person subject to the disposition prescribed in Article 125 (Disposition taken in lieu of seizure of recording medium containing electronic or magnetic record)) the retained or seized items or other person acting on their behalf.

(Handling of retained items, etc.)

Article 133.With respect to retained items, seized items or seized records created under copying order, if they are unfit for transportation or storage, a customs official may, with the consent of the owner, holder or other person found to be appropriate by the customs official, have these persons store these items or records after having received a storage certificate from these persons.

(2)If retained or seized items were spoiled or deteriorated or are likely to be spoiled or deteriorate, the Director General of Customs may, pursuant to the provisions of Cabinet Order, offer them for public auction after giving a public notice thereof and may keep the proceeds from the public auction.

(3)Paragraphs (3) and (4) of Article 84 (Public auction or sale, etc. of goods kept in custody) apply mutatis mutandis to the public auction referred to in the preceding paragraph, and paragraph (5) of that Article applies mutatis mutandis to retained or seized items.

(Return, etc. of retained items, etc.)

Article 134.If it is no longer necessary to keep in custody retained or seized items or seized records created under copying order, a customs official shall return the items or records to a person to whom they should be returned.

(2)If retained or seized items or seized records created under copying order, referred to in the preceding paragraph cannot be returned for the reason that the domicile or residence of a person who is to receive them is unknown or on other grounds, the Director General of Customs shall give a public notice thereof.

(3)If no claim is made for return of retained or seized items or seized records created under copying order subject to the public notice referred to in the preceding paragraph after expiry of six months from the date of the public notice, they vest in the national treasury.

(4)In the case referred to in paragraph (1), if customs duty has not been paid for retained or seized items referred to in that paragraph, the customs duty is immediately collected from a person who is to receive the items (excluding a person who is found to have possessed these items without knowing that customs duty has not been paid; hereinafter the same applies in this Article).

(5)When the proceeds from retained or seized items, offered for public auction pursuant to the provisions of paragraph (2) of the preceding Article or sold pursuant to the provisions of paragraph (3) of Article 84 (Public auction or sale, etc. of goods kept in custody), as applied mutatis mutandis pursuant to paragraph (3) of the preceding Article, are returned to a person who is to receive them pursuant to the provisions of paragraph (1) of this Article, customs duty and other national taxes chargeable on these items is immediately collected if the customs duty and national taxes have not been paid. In this case, the proceeds are allocated to the customs duty and other national taxes.

(6)When the proceeds from retained or seized items, offered for public auction pursuant to the provisions of paragraph (2) of the preceding Article and subsequently taken over by a public prosecutor pursuant to the provisions of Article 148 (Transfer of cases to public prosecutor) or the proceeds from foreign goods, sold pursuant to the provisions of the Code of Criminal Procedure are returned to a person who is to receive them pursuant to the provisions of that Code, the Director General of Customs immediately collects customs duty chargeable on these items or goods from the person who is to receive the proceeds if the customs duty has not been paid.

(7)Paragraph (4) of Article 97 (Notification from police officials, etc.) applies mutatis mutandis to the cases referred to in the preceding three paragraphs. In this case, the term “possessed by a person who makes a disposition referred to in that paragraph” in paragraph (4) of that Article is deemed to be replaced with “taken into custody or seized”.

(Delivery of recording medium seized after having transmitted, etc.)

Article 135.When it is no longer necessary to retain a recording medium seized after having transmitted its electronic or magnetic record or after having had other person transmit the records, pursuant to the provisions of Article 125 (Disposition taken in lieu of seizure of recording medium containing electronic or magnetic record), if a person subject to the seizure and a person who owns, possesses or stores the medium are different, a customs official shall deliver the medium to the person subject to seizure or permit the person to copy the recording medium.

(2)Paragraph (2) of the preceding Article applies mutatis mutandis to delivery or copying as prescribed in the preceding paragraph.

(3)If no claim for delivery or copying referred to in the preceding paragraph is made even after expiry of six months from the date of public notice prescribed in paragraph (2) of the preceding Article, as applied mutatis mutandis pursuant to the preceding paragraph, the delivery or copying may not be required.

(Commissioning, etc. of expert opinions)

Article 136.A customs official, if it is necessary for conducting investigation of a criminal case, may commission a person with academic background and experience to provide an expert opinion with respect to retained or seized items or seized records created under copying order, or may commission interpretation or translation.

(2)A person who has been commissioned to provide an expert opinion under the preceding paragraph (referred to as “expert” in paragraphs (4) and (5)) may, with permission of a judge of a district court or summary court having jurisdiction over the location of the office of the customs official referred to in the preceding paragraph, destroy items for which an expert opinion is to be provided.

(3)The request for permission referred to in the preceding paragraph shall be made by a customs official.

(4)When the request referred to in the preceding paragraph has been made, if the judge of court finds that the request is appropriate, the judge shall deliver to a customs official a permit with the judge’s name and seal affixed thereto, specifying the name of a criminal suspect (or, in the case of a juridical person, its name), the charged offense, items to be destroyed, the name of an expert, the official post and name of a requester, its valid period, the fact that the permit shall not be executed after expiry of its valid period and shall be returned to the court, its delivery date and the name of the court.

(5)The expert shall present the permit referred to in the preceding paragraph to a person subject to the disposition referred to in paragraph (2).

(Restrictions on on-site inspection, search, seizure, etc. at night)

Article 137.Any on-site inspection, search, seizure or seizure of records created under copying order shall not be conducted from sunset to sunrise unless a permit specifies that it may be executed at night; provided, however, that this does not apply if the disposition is made during business hours of a hotel, restaurant or any other place accessible by the public at night, or if the disposition is made pursuant to the provisions of Article 124 (On-site inspection, search or seizure at the scene of offense).

(2)On-site inspection, search, seizure or seizure of records created under copying order that starts before sunset may, if it is found necessary, continue after sunset.

(Prohibition on entering or leaving during disposition)

Article 138.A customs official, while conducting, pursuant to the provisions of this Section, questioning, inspection, retention, on-site inspection, search, seizure or seizure of records created under copying order or requests for disclosure, may prohibit any person from entering and/or leaving, without permission, the place where the disposition takes place.

(Disposition in the case of suspension of execution)

Article 139.When execution of a permit for on-site inspection, search, seizure or seizure of records created under copying order is suspended, the place subject to execution may be closed up or may be put under guard until execution is completed, if necessary.

(Delivery of search certificate)

Article 140.In the case of a search, when there is not any item of evidence or any item to be confiscated, a customs official shall, upon request from a person subject to the search, deliver a certificate stating that fact.

(Preparation of record of investigation)

Article 141.A customs official, when having conducted questioning pursuant to the provisions of this Section, shall prepare a record of investigation and have a person who has been questioned verify the record by having that person inspect or by reading the record to that person, and if that person requests for any addition, removal or alteration, the customs official shall include that person’s statement in the record and affix a signature and seal on the record, together with that person; provided, however, that if that person does not or cannot affix signature or seal on the record, it shall be sufficient to append a note to that effect.

(2)A customs official, when having conducted an inspection or retention pursuant to the provisions of this Section, shall prepare a record thereof and affix the signature and seal thereon.

(3)A customs official, when having conducted on-site inspection, search, seizure or seizure of records created under copying order pursuant to the provisions of this Section, shall prepare a record and present the record to a witness, and the customs official shall sign and seal the record, together with the witness; provided, however, that if the witness does not or cannot affix signature or seal on the record, it shall be sufficient to append a note to that effect.

(Execution of official duties outside jurisdiction area)

Article 142.A customs official, if it is necessary for conducting investigation of a criminal case, may perform its duties outside the jurisdiction area of the customs to which that official belongs.

(Notification by public officials other than customs officials)

Article 143.If a public official other than a customs official detects or investigates a case of suspected offense, the public official shall immediately notify the customs of this fact.

Section 2 Disposition of Criminal Cases

(Accusation in a criminal case involving customs duty on goods to which self-assessment system applies)

Article 144.A customs official shall immediately file an accusation with a public prosecutor if the customs official considered that there exists an offense through investigation of a criminal case involving customs duty for goods to which the self-assessment system applies (limited to the case relating to the offense referred to in paragraph (1) of Article 110 (Offense of evading customs duty, etc.) (limited to an offense involving a person who has evaded customs duty provided for in item (i) of that paragraph and including an offense by a person who commenced to commit an offense, but did not accomplish it and to whom, pursuant to the provisions of paragraph (3) of that Article, paragraph (1) applies) and including the case relating to the offense referred to in item (ii) of paragraph (1) of Article 111 (Offense of exportation, importation, etc. without permission) where deception or other wrongful acts (limited to those related to a person who has evaded customs duty prescribed in item (i) of paragraph (1) of Article 110) falls under the offense referred to in that item; referred to as “criminal case involving customs duty to which self-assessment system applies” in the next Article).

(Reporting or accusation by a customs official)

Article 145.A customs official, when having completed investigation of a criminal case (excluding a criminal case involving customs duty to which the self-assessment system applies; hereinafter the same applies), shall report the result of the investigation to the Director General of Customs; provided, however, that if the situation falls under any of the following cases, an accusation shall immediately be filed with a public prosecutor:

(i)if the residence of a criminal suspect is unknown;

(ii)if it is likely that a criminal suspect absconds;

(iii)if it is likely that any items found to be used as evidence will be concealed or destroyed.

(Disposition of administrative notification, etc. by the Director General of Customs)

Article 146.If the Director General of Customs is convinced, through investigation of a criminal case, that an offense has been committed, the Director General of Customs shall issue a notification in writing, with clear indication of the grounds, that a person concerned is required to deliver to the customs the amount equivalent to a fine, the items to be confiscated, the amount equivalent to the amount to be subsequently collected and the expenses required for services of documents, transportation and storage of seized items or seized records created under copying order. In this case, the Director General of Customs may issue a notification indicating that, with respect to items subject to confiscation, the person concerned is required only to file a request to deliver them.

(2)In the case referred to in the preceding paragraph, if the situation is found to fall under any of the following items, the Director General of Customs, notwithstanding the provisions of that paragraph, shall immediately file an accusation with a public prosecutor:

(i)if the circumstances warrant that imprisonment with work be imposed;

(ii)if an offender does not have financial resources to perform the matters indicated in the notification.

(3)If there is any miscalculation, clerical error or any other clear error similar thereto in the notification prescribed in paragraph (1), the Director General of Customs may, by its own authority, correct the notification, provided that such correction is made before the offender perform the matters indicated in the notification or an accusation is filed pursuant to the provisions of the preceding paragraph or the next Article.

(4)If a notification is issued pursuant to the provisions of paragraph (1), the statute of limitations for prosecution is suspended and resumes when twenty days elapse from the day following the date on which an offender receives the notification.

(5)If an offender performs the matters indicated in the notification referred to in paragraph (1) (if any correction prescribed in paragraph (3) is made, the notification issued after the correction; the same applies in the next paragraph and paragraph (1) of the next Article), prosecution is not instituted for the same case.

(6)When an offender performs the matters indicated in the notification referred to in the second sentence of paragraph (1), if the offender possesses items subject to confiscation, the offender has the obligation to store the items until they are offered for public auction or other necessary disposition is made; provided, however, that the expense for storage of the items may not be claimed.

(Non-performance under disposition of administrative notification and accusation)

Article 147.When an offender receives a notification referred to in paragraph (1) of the preceding Article (if correction prescribed in paragraph (3) of that Article is made, that correction; hereinafter in this Article referred to as “notification, etc.”), if the offender fails to perform the matters indicated in the notification, etc. within twenty days from the day following the date of receipt of the notification, etc., the Director General of Customs shall file an accusation with a public prosecutor; provided, however, that this does not apply if the offender, even after expiry of that period, has performed the indicated matters in the notification, etc. before filing of the accusation.

(2)The preceding paragraph also applies if the notification, etc. cannot be issued for the reason that the residence of an offender is unknown or that the offender refuses to receive any document related to the notification, etc. or on other grounds.

(Transfer of cases to public prosecutor)

Article 148.A criminal case is not to be subject to criminal proceedings until accusation is filed by a customs official pursuant to the provisions of the proviso to Article 145 (Reporting or accusation by a customs official) or by the Director General of Customs pursuant to the provisions of paragraph (2) of Article 146 (Disposition of administrative notification, etc. by the Director General of Customs) or the preceding Article.

(2)Accusation prescribed in Article 144 (Accusation in a criminal case involving customs duty on goods to which self-assessment system applies) or accusation referred to in the preceding paragraph shall be made in writing, accompanied by a record of investigation provided for in the paragraphs of Article 141 (Preparation of record of investigation), and if there are retained or seized items, or seized records created under copying order, they shall be transferred to the prosecutor, together with a retention or seizure inventory or a seizure inventory of records created under copying order.

(3)When retained or seized items or seized records created under copying order, as referred to in the preceding Article are those subject to storage under paragraph (1) of Article 133 (Handling of retained items, etc.), they shall be transferred to a prosecutor, using a storage certificate referred to in that paragraph, and the person who stores them pursuant to the provisions of that paragraph shall be so notified.

(4)When retained or seized items have been transferred pursuant to the provisions of the preceding two paragraphs, they are deemed to have been seized by a prosecutor pursuant to the provisions of the Code of Criminal Procedure.

(5)Accusation referred to in paragraph (1) may not be revoked.

(Notification, etc. if not convinced that a criminal offense has taken place)

Article 149.If the Director General of Customs is not convinced of a criminal offense through investigation of a criminal case, the Director General of Customs shall notify a criminal suspect of that fact. In this case, the Director General of Customs shall order to release any retained or seized items or seized records created under copying order, if any.