Latest Revision: Act No. 9 of March 31, 2020
Temporary Tariff Measures Act
(Purpose)
Article 1.This Act is to provide for temporary exceptions to the Customs Tariff Act (Act No. 54 of 1910) and the Customs Act (Act No. 61 of 1954) by making necessary adjustment to the rates of customs duty applicable to goods for the purpose of contributing to the sound development of the national economy.
(Temporary rates of customs duty)
Article 2.The rates of customs duty to be levied on goods set forth in Appended Table 1 and imported on or before March 31, 2021 shall be as prescribed in that Table.
(2)The rates of customs duty to be levied on goods set forth in Appended Table 1-3 and imported on or before March 31, 2021, shall be as prescribed in that Table for the category of goods imported within the period as specified respectively in that Table.
Article 3.(Deleted)
(Exemption from customs duty on aircraft parts, etc.)
Article 4.Goods set forth in the following, if they are recognized, as may be prescribed by Cabinet Order, as those difficult to be manufactured in Japan, shall, pursuant to the provision of Cabinet Order, be exempted from customs duty, provided that they are imported on or before March 31, 2023:
(i)parts used for aircraft;
(ii)materials used for manufacture of aircraft and parts thereof at a manufacturing factory approved by the Director General of Customs;
(iii)artificial satellites, rockets for launching artificial satellites, appliances and instruments used for launching and tracking such satellites or rockets and other goods used for space development;
(iv)materials used for manufacture of goods set forth in the preceding item at a manufacturing factory approved by the Director General of Customs.
(Special emergency customs duty where import quantity exceeds threshold import quantity)
Article 7-3.In cases where, in each of fiscal years from 1995 to 2020, the aggregate import quantity of goods set forth in Appended Table 1-6, obtained by adding up, under each of the items of that Table, the import quantities of these goods in the fiscal year concerned exceeds the quantity publicly notified in advance by the Minister of Finance in the official gazette or by other appropriate means including the method using internet (hereinafter referred to as “public notice, etc.” or “publicly notified, etc.”, as the case may be)(hereinafter the quantity so notified is referred to as “threshold import quantity” in this Article and in that Table), the rate of customs duty to be levied on the goods set forth in each of these items, imported during the period from the first day of the second month following the month in which the import quantity exceeds the threshold import quantity (the first day herein is referred to as “trigger day” in item (vi) and (viii) of the next paragraph) to the last day of that fiscal year shall, notwithstanding the provision of Article 3 (Basis for duty assessment and rates of customs duty) of the Customs Tariff Act, Article 2 or paragraph (1) or (3) of Article 8-2, be the rate of duty obtained by adding to the rate of duty prescribed in the Appended Table of that Act (in the case of goods set forth in Appended Table 1-3, the rate of duty prescribed in that Table; hereinafter the same applies in this paragraph) or to the rate of duty prescribed in Schedule XXXVIII Japan annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 in Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization (in Articles 7-7 and 8-2 referred to as “WTO rate of duty”), whichever is lower (with regard to goods imported from the countries (including their territories) to which the benefit prescribed in the special provisions of a treaty concerning customs duty or Article 5 (Beneficial duty) of the Customs Tariff Act is not extended, the rate of duty prescribed in the Appended Table of that Act; referred to as “ordinary rate of customs duty” in paragraph (1) of the next Article), the rate of duty as prescribed in Appended Table 1-6 for the category of goods imported during the period as set forth respectively in that Table; provided, however, that, in fiscal year 2020, this applies only to the case where the import quantity obtained by deducting from the aggregate import quantity calculated by adding up, under each of the items of that Table, the import quantities of goods set forth in the same Table during the fiscal year concerned, the aggregate quantity of imports calculated by adding up, under each of these items, the import quantities in that fiscal year, pertaining to goods set forth in each of these items and recognized, pursuant to the provision of Cabinet Order, by the Director General of Customs as originating goods of the Economic Partnership Agreement in accordance with the provision of the Agreement (hereinafter referred to as “originating goods of the Economic Partnership Agreement” in this paragraph and paragraph (5)) and the import quantity pertaining to goods set forth in the items of that Table and originating in the Party to the Agreement (other than Japan) (excluding originating goods of the Economic Partnership Agreement; in paragraph (8) referred to as “goods produced in the Party”) (limited to import quantity pertaining to the period preceding the day to be specified by Cabinet Order; the same applies in paragraph (8)) exceeds the quantity publicly notified, etc. in advance by the Minister of Finance (the quantity so notified, etc. is referred to as “threshold import quantity not covered by the Agreement” in paragraph (6)). “The Economic Partnership Agreements” as used herein means treaties or other international engagements which strengthen the economic partnership between Japan and other Party (including territories having their own tariff and trade systems: hereinafter the same applies) by taking comprehensively measures for establishing a free trade area provided for in Article 24-8 (b) of the General Agreement on Tariffs and Trade 1994-Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization (in item (v) of the next paragraph and item (ii) of paragraph (2) of Article 7-6 referred to as “the General Agreement) or other measures including liberalization of trade and facilitation of investment and which are prescribed by Cabinet Order as those requiring certain measures under this Act for ensuring their proper implementation (hereinafter the same applies).
(2)The preceding paragraph shall not apply to the case where goods set forth in Appended Table 1-6 fall under any of the following items:
(i)goods to be prescribed by Cabinet Order pursuant to the provision of paragraph (2) of Article 8-5, if they are imported within the quantity limit to be prescribed by Cabinet Order, as provided for in the descriptions columns of Appended Table 1;
(ii)milk and cream set forth in subheadings 0402.10-1 and -2-(2), subheadings 0402.21-1 and -2-(2), subheading 0402.29 and subheadings 0402.99-1-(2) and -2 of the Appended Table of the Customs Tariff Act, curdled milk, cream, etc. set forth in subheading 0403.90-1 of that Table, whey and modified whey set forth in subheading 0404.10-1 of that Table, and butter and other oils and fats derived from milk and dairy spreads set forth in subheadings 0405.10, 0405.20 and 0405.90 of that Table, if they are imported by the Agriculture and Livestock Industries Corporation within the quantity limit provided for in paragraph (1) of Article 17 of the Act Concerning Stabilization of Business in the Livestock Industry (Act No. 183 of 1961) or if they are imported with the approval of the Minister of Agriculture, Forestry and Fisheries as provided for in paragraph (2) of that Article;
(iii)wheat and meslin set forth in subheadings 1001.11, 1001.19, 1001.91 and 1001.99 of the Appended Table of the Customs Tariff Act, barley set forth in subheadings 1003.10 and 1003.90 of that Table, triticale set forth in subheading 1008.60-2 of that Table, wheat flour and meslin flour set forth in subheading 1101.00 of that Table, barley flour and triticale flour set forth in subheadings 1102.90-1 and -2, of that Table, cereal groats, etc. set forth in subheading 1103.11, subheadings 1103.19-1 and -2, and subheadings 1103.20-1, -4 and -5 of that Table, worked cereal grains set forth in subheadings 1104.19-1 and -3 and subheadings 1104.29-1 and -3 of that Table, wheat starch set forth in subheading 1108.11 of that Table, food preparations of cereal flour, etc. set forth in subheadings 1901.20-1-(2)-B, -C, and -D-(a) and subheadings 1901.90-1-(2)-B, -C, and -D-(a) of that Table, food preparations of cereals, etc. set forth in subheadings 1904.10-2-(2) and -(3), subheadings 1904.20-2-(2) and -(3), subheading 1904.30 and subheadings 1904.90-2 and -3 of that Table, and food preparations set forth in subheading 2106.90-2-(1)-B of that Table, if they are imported by the Government pursuant to the provision of Article 42 of the Act for Stabilization of Supply, Demand and Prices of Staple Food (Act No. 113 of 1994), barley, wheat, etc., imported as those pertaining to the purchase and sale of the Government conducted in response to the application made in joint names as prescribed in Article 43 of that Act, and barley, wheat, etc. to be prescribed by Cabinet Order as provided for in item (iii) of paragraph (1) of Article 45 of that Act, if they are imported with the certification of the Minister of Agriculture, Forestry and Fisheries pursuant to the provision of Cabinet Order;
(iv)rice set forth in subheadings 1006.10, 1006.20, 1006.30 and 1006.40 of the Appended Table of the Customs Tariff Act, rice flour set forth in subheading 1102.90-3 of that Table, cereal groats, etc. set forth in subheadings 1103.19-4 and 1103.20-3-(2) of that Table, worked cereal grains set forth in subheadings 1104.19-2-(2) and 1104.29-2 of that Table, food preparations of flour, etc. set forth in subheadings 1901.20-1-(2)-A and -(3) and subheadings 1901.90-1-(2)-A and -(3) of that Table, food preparations of cereals, etc. set forth in subheadings 1904.10-2-(1), 1904.20-2-(1) and 1904.90-1 of that Table and food preparations set forth in subheading 2106.90-2-(1)-A of that Table, if they are imported by the Government pursuant to the provision of Article 30 of the Act for Stabilization of Supply, Demand and Prices of Staple Food, rice, etc. imported as those pertaining to the purchase and sale of the Government conducted in response to the application made in joint names as prescribed in Article 31 of that Act, rice, etc. prescribed by Cabinet Order as provided for in item (iii) of paragraph (1) of Article 34 of that Act if they are imported with the certification of the Minister of Agriculture, Forestry and Fisheries pursuant to the provision of Cabinet Order, and rice, etc. pertaining to return of rice (including goods prescribed by Cabinet Order as those equivalent to such rice) provided as a loan by the Government pursuant to the provision of paragraph (1) of Article 49 of that Act;
(v)goods subject to the measure prescribed in item (ii) of paragraph (1) of Article 9 (Emergency duty, etc.) of the Customs Tariff Act or other measures prescribed in Article XIX:1 (Emergency action on imports of particular products) of the General Agreement and in the Agreement on Safeguards in Annex 1A to the Marrakesh Agreement Establishing the World Trade Organization (referred to as “Safeguard Agreement” in item (ii) of paragraph (2) of Article 7-6);
(vi)goods confirmed, pursuant to the provision of Cabinet Order, by the Director General of Customs as those having been shipped to Japan before the trigger day.
(3)In cases where goods set forth in Appended Table 1-6 fall under the case provided for in paragraph (1), if it is considered that, in light of import trends of such goods or other circumstances, importation of such goods is not likely to cause injury to domestic industry producing the same kind of goods or other goods directly competing with such imported goods in their use, application of that paragraph may, pursuant to the provision of Cabinet Order, be suspended, by specifying goods and period, for such specified goods imported within such specified period.
(4)The threshold import quantity provided for in paragraph (1) shall be the quantity obtained by calculating, using the method as specified in each of the following items for the category of the cases as set forth respectively therein, as the aggregate quantity obtained by adding up, under each of the items of Appended Table 1-6, import quantities of goods set forth in that Table; provided, however, that if the quantity thus obtained is less than 105/100 of the quantity equivalent to one-third of the aggregate quantity of the import quantities of each year (in the case of goods set forth in items 15 to 19 of that Table, the period from October 1 of each year to September 30 of the following year; the same applies in item (i)) of the past three consecutive years inclusive of the year preceding the year which includes the first day of the fiscal year concerned (in the case of goods set forth in items 15 to 19 of that Table, “the year preceding the year” means the period from October 1 of the year prior to the preceding year which includes the first day of the fiscal year concerned to September 30 of the following year; hereinafter simply referred to as “preceding year” in this and next paragraph) (hereinafter referred to as “average import quantity” in this and next paragraph), then the threshold import quantity shall be the quantity obtained by multiplying the average import quantity by 105/100:
(i)where the average import quantity is equal to or less than the quantity obtained by multiplying the quantity equivalent to one-third of the aggregate quantity of domestic consumption of each year of the last three consecutive years inclusive of the preceding year (referred to as “average quantity of domestic consumption” in the next item and item (iii)) by 10/100: the quantity obtained by adding to the quantity obtained by multiplying the average import quantity by 125/100, the quantity of domestic consumption in the preceding year minus the quantity of domestic consumption in the year prior to the preceding year (in the case of goods set forth in items 15 to 19 of Appended Table 1-6, the period from October 1 of the year three years preceding the year which includes the first day of the fiscal year concerned until September 30 of the next year; hereinafter simply referred to as “the year prior to the preceding year” in this paragraph) (in the case where there remains any non-deductible quantity after having deducted the quantity of domestic consumption in the year prior to the preceding year from the quantity of domestic consumption in the preceding year, such quantity shall be the quantity obtained by deducting such non-deductible quantity from the quantity obtained by multiplying the average import quantity by 125/100.);
(ii)where the average import quantity exceeds the quantity obtained by multiplying the average quantity of domestic consumption by 10/100, and is equal to or less than the quantity obtained by multiplying such average quantity by 30/100: the quantity obtained by adding to the quantity obtained by multiplying the average import quantity by 110/100, the quantity of domestic consumption in the preceding year minus the quantity of domestic consumption in the year prior to the preceding year (in the case where there remains any non-deductible quantity after having deducted the quantity of domestic consumption in the year prior to the preceding year from the quantity of domestic consumption in the preceding year, such quantity shall be the quantity obtained by deducting such non-deductible quantity from the quantity obtained by multiplying the average import quantity by 110/100);
(iii)where the average import quantity exceeds the quantity obtained by multiplying the average quantity of domestic consumption by 30/100: the quantity obtained by adding to the quantity obtained by multiplying the average import quantity by 105/100, the quantity obtained by deducting from the quantity of domestic consumption in the preceding year, the quantity of domestic consumption in the year prior to the preceding year (in the case where there remains any non-deductible quantity after having deducted from the quantity of domestic consumption in the preceding year, the quantity of domestic consumption in the year prior to the preceding year, such quantity shall be the quantity obtained by deducting from the quantity obtained by multiplying the average import quantity by 105/100, such non-deductible quantity).
(5)In cases where, in calculating the threshold import quantity provided for in paragraph (1) pursuant to the provision of the preceding paragraph, any of the items of Appended Table 1-6 contains goods the domestic consumption of which, during the past three consecutive years inclusive of the preceding year, is unknown, the threshold import quantity pertaining to the item containing such goods shall be the quantity obtained by multiplying the average import quantity of that item by 125/100.
(6)The preceding two paragraphs apply mutatis mutandis to the case where the threshold import quantity not covered by the Agreement as provided for in the proviso to paragraph (1) is calculated. In this case, the term “the import quantities of goods set forth in that Table” in paragraph (4) shall be read as “the import quantities of goods set forth in that Table (excluding the import quantity pertaining to goods recognized, pursuant to the provision of Cabinet Order, by the Director General of Customs as originating goods of the Economic Partnership Agreement pursuant to the provision of that Agreement (the originating goods herein are referred to as “originating goods of the Economic Partnership Agreement” in item (i)) and the import quantity pertaining goods originating in the Party to the Economic Partnership Agreement (other than Japan) (the goods herein are referred to as “goods produced in the Party” in the said item) (limited to import quantity pertaining to the period preceding the date to be specified by Cabinet Order); the same applies in the said item)” and the term “the aggregate quantity of domestic consumption of each year” in item (i) of paragraph (4) shall be read as “the aggregate quantity of domestic consumption (excluding the quantity equivalent to the aggregate quantity of import quantity pertaining to originating goods of the Economic Partnership Agreement and import quantity pertaining to goods produced in the Party; hereinafter the same applies in this paragraph and the next paragraph) of each year”.
(7)The import quantity provided for in paragraphs (1) and (4) (including the case where applied mutatis mutandis pursuant to the preceding paragraph; hereinafter the same applies in this paragraph) shall, pursuant to the provision of Cabinet Order, be calculated on the basis of the statistical quantities or by the method used for preparation of such statistics, as referred to in item (i) of paragraph (1) of Article 102 (Issuance of certificates and inspection of statistics, etc.) of the Customs Act, and the quantity of domestic consumption provided for in paragraph (4) shall, pursuant to the provision of Cabinet Order, be calculated on the basis of the statistical quantities or by the method used for preparation of such statistics, as prescribed by Cabinet Order.
(8)The Minister of Finance shall, with regard to goods set forth in Appended Table 1-6, make a public notice, etc. of import quantity of these goods, obtained by adding up, under each of the items of that Table, the import quantities of such goods from the first day of the fiscal year concerned until the end of each month (in fiscal year 2020, the import quantity of such goods shall be the aggregate import quantity obtained by adding up, under each of the items of that Table, the quantities of goods set forth in that Table imported during the period from the first day of that fiscal year until the last day of each month and the import quantity obtained by deducting from such aggregate import quantity, the aggregate import quantity obtained by adding up, under each of the items of that Table, the quantities pertaining to the originating goods of the Economic Partnership Agreement and the quantities pertaining to goods produced in the Party, as referred to in each of the items, imported from the first day of that fiscal year until the last day of each month) on or before the last day of the month following each month, and if the aggregate import quantity of goods set forth in that Table obtained by adding up, under each of the items of that Table, the import quantities during the fiscal year concerned, exceeds the threshold import quantity for that fiscal year (in fiscal year 2020, limited to the case falling under the cases provided for in the proviso to paragraph (1)), the Minister of Finance shall make a public notice, etc. of the trigger day for the goods pertaining to each of the items in which such excess occurs, on or before the last day of the month following the month in which such excess occurs.
(Special emergency customs duty where customs value falls below trigger threshold price)
Article 7-4.Th amount of customs duty to be levied on goods set forth in Appended Table 1-7 in each of the fiscal years from 1995 to 2020, if the customs value of these goods (in the case of goods on which customs duty is levied on the basis of their quantity, customs value calculated in accordance with Articles 4 to 4-9 of the Customs Tariff Act; hereinafter the same applies) falls below the trigger threshold price (i.e., the weighted average of customs value of such goods during the period from 1986 to 1988 or, if this cannot practically be applied, the value publicly notified, etc. by the Minister of Finance as the value calculated pursuant to the provision of Cabinet Order; hereinafter the same applies in this paragraph and in that Table), shall, notwithstanding the provisions of Article 3 (Basis for duty assessment and rates of customs duty) of that Act or Article 2 or paragraph (1) or (3) of Article 8-2, be the amount obtained by adding the amount calculated, using the method as specified in each of the following items for the category of the cases as set forth respectively therein, to the amount equivalent to the amount of customs duty calculated on the basis of the ordinary rate of customs duty:
(i)where the difference between the trigger threshold price and the customs value exceeds the amount obtained by multiplying the trigger threshold price by 10/100 and is not more than the amount obtained by multiplying the trigger threshold price by 40/100: the amount of duty to be added = (trigger threshold price × 0.9 - customs value) × 0.3;
(ii)where the difference between the trigger threshold price and the customs value exceeds the amount obtained by multiplying the trigger threshold price by 40/100 and is not more than the amount obtained by multiplying the trigger threshold price by 60/100: the amount of duty to be added = (trigger threshold price × 0.6 - customs value) × 0.5 + trigger threshold price × 0.09;
(iii)where the difference between the trigger threshold price and the customs value exceeds the amount obtained by multiplying the trigger threshold price by 60/100 and is not more than the amount obtained by multiplying the trigger threshold price by 75/100: the amount of duty to be added = (trigger threshold price × 0.4 - customs value) × 0.7 + trigger threshold price × 0.19;
(iv)where the difference between the trigger threshold price and the customs value exceeds the amount obtained by multiplying the trigger threshold price by 75/100: the amount of duty to be added = (trigger threshold price × 0.25 - customs value) × 0.9 + trigger threshold price × 0.295.
(2)The preceding paragraph shall not apply in the case where goods set forth in Appended Table 1-7 fall under any of items (i) to (v) of paragraph (2) of the preceding Article or are those on which additional customs duty is levied pursuant to the provision of that Article.
(3)In cases where importation of any of the goods set forth in Appended Table 1-7 is not likely to cause, in light of the import trends of such goods or other circumstances, injury to the domestic industry producing the same kind of goods or other goods directly competing with such imported goods in their use, application of paragraph (1) may, pursuant to the provision of Cabinet Order, be suspended, by specifying goods and period, for such specified goods imported within such specified period.
Article 7-5.(Deleted)
(Special emergency customs duty pertaining to pork, etc.)
Article 7-6.In each of fiscal years from 1995 to 2020, in cases where, the import quantity during the fiscal year concerned, of live swine set forth in subheading 0103.92 of the Appended Table of the Customs Tariff Act, meat of swine set forth in subheadings 0203.11-2, 0203.12-2, 0203.19-2, 0203.21-2, 0203.22-2 and 0203.29-2 of that Table, offal of swine set forth in subheadings 0206.30-2-(2) and 0206.49-2- (2) of that Table, offal of swine, etc. set forth in subheadings 0210.11, 0210.12, 0210.19 and 0210.99-1 of that Table and ham, bacon, etc. set forth in subheadings 1602.41-1, 1602.42-1 and 1602.49-2-(1) of that Table (hereinafter referred to as “pork, etc.” in this Article and in Appended Tables 1-3-2 and 1-8) exceeds the quantity publicly notified, etc. in advance by the Minister of Finance (in paragraphs (3) and (5) referred to as “threshold import quantity”), the rates of customs duty to be levied on port, etc. imported within the period from the first day of the second month following the month in which the excess occurs (the first day herein referred to as “trigger day” in item (i) of the next paragraph and paragraph (5)) shall, notwithstanding the provision of Article 2 or paragraph (1) or (3) of Article 8-2, be the rates of customs duty as prescribed in Appended Table 1-8; provided, however, that, for fiscal year 2020, this applies only to the case where the import quantity obtained by deducting from the import quantity of pork, etc. during that fiscal year, the aggregate quantity of the import quantity pertaining to pork, etc. to which the benefit of tariff concession is extended under the Economic Partnership Agreement during that fiscal year (hereinafter in this paragraph and Article 7-9 referred to as “goods covered by tariff concession”) and the import quantity pertaining to pork, etc. originating in the Party to the Economic Partnership Agreement, other than Japan (excluding those goods covered by tariff concession) (limited to those goods pertaining to the period preceding the day to be specified by Cabinet Order) (the import quantity thus obtained is referred to as “import quantity not covered by the Agreement” in paragraph (5)) exceeds the quantity publicly notified, etc. in advance by the Minister of Finance (the quantity so notified is referred to as “threshold import quantity not covered by the Agreement” in paragraph (3)).
(2)The preceding paragraph, in cases where the situation falls under any of the following items, shall not apply:
(i)where it is, pursuant to the provision of Cabinet Order, confirmed by the Director General of Customs that pork, etc. pertaining to importation was shipped to Japan before the trigger day;
(ii)where pork, etc., is subject to the measure prescribed in item (ii) of paragraph (1) of Article 9 (Emergency duty, etc.) of the Customs Tariff Act or other measures prescribed in Article XIX:1 (Emergency action on imports of particular goods) of the General Agreement and the Safeguard Agreement.
(3)Paragraph (4) of Article 7-3 applies mutatis mutandis to the case where the threshold import quantity or the threshold import quantity not covered by the Agreement is to be calculated. In this case, when paragraph (4) of that Article applies mutatis mutandis to the calculation of the threshold import quantity not covered by the Agreement, the term “the import quantities of goods set forth in that Table” in that paragraph shall be read as “the import quantities of pork, etc. provided for in paragraph (1) of Article 7-6 (excluding the aggregate quantity of the import quantity pertaining to pork, etc. to which the benefit of tariff concession is extended under the Economic Partnership Agreement (hereinafter in this paragraph referred to as “goods covered by tariff concession”) and the import quantity pertaining to pork, etc. originating in the Party to the Economic Partnership Agreement, other than Japan (excluding those goods covered by tariff concession; in item (i) referred to as “goods produced in the Party”) (limited to import quantity pertaining to the period preceding the day to be specified by Cabinet Order; the same applies in that item); hereinafter the same applies in this paragraph)” and the term “the aggregate quantity of domestic consumption of each year” in item (i) of that paragraph shall be read as “the aggregate quantity of domestic consumption of each year (excluding quantity equivalent to the aggregate quantity of import quantity pertaining to goods covered by tariff concession and import quantity pertaining to goods produced in the Party; hereinafter the same applies in this paragraph)”.
(4)Paragraph (7) of Article 7-3 applies mutatis mutandis to the case where the import quantity provided for in paragraph (1) or the quantity of domestic consumption provided for in paragraph (4) of that Article, as applied mutatis mutandis pursuant to the preceding paragraph is calculated.
(5)The Minister of Finance shall, in each of fiscal years from 1995 to 2020, make a public notice, etc. of import quantity of pork, etc. (in fiscal year 2020, such import quantity and import quantity not covered by the Agreement) during the period from the first day of the fiscal year concerned to the last day of each month, on or before the last day of the month following such each month, and if import quantity of pork, etc. during the fiscal year concerned exceeds the threshold import quantity (in fiscal year 2020, limited to the case where the situation falls under the case provided for in the proviso to paragraph (1)), he shall make a public notice, etc. of the trigger day on or before the last day of the month following the month in which such excess occurs.
(Emergency measures of customs duty under the Economic Partnership Agreement)
Article 7-7.In cases where there is the fact of increase in imports of a specific kind of goods as a result of tariff concession under the Economic Partnership Agreement (hereinafter simply referred to as “tariff concession” in this Article) (a specific kind of goods herein is limited to those to which benefit of tariff concession is extended under the Agreement) (in paragraphs (6) and (7) referred to as “the fact of increase in imports of a specific kind of goods”) and there is the fact that increase in imports of such goods causes or threatens to cause serious injury to the domestic industries producing the same kind of goods or other goods directly competing with such imported goods in their use (in paragraphs (6) and (7) referred to as “the fact of serious injury, etc. to domestic industries”), if it is found urgently necessary for the national economy, the following measures may, pursuant to the provision of Cabinet Order, by specifying a country (including a territory having its own tariff and trade system; hereinafter the same applies in this Article, item (ii) of Article 7-9, Article 7-10 and paragraph (1) of Article 8-2), goods and period, be taken in accordance with the provision of the Agreement:
(i)to make no further reduction of the rate of customs duty chargeable on all of the specified goods to be imported within the specified period or on excess part of such specified goods over a certain quantity or value, in the case where such further reduction is required for such specified goods under the Economic Partnership Agreement;
(ii)to raise the rate of customs duty chargeable on all of the specified goods to be imported within the specified period or on the excess part of such specified goods over a certain quantity or value, to the level not exceeding the rate of duty as prescribed in the Appended Table of the Customs Tariff Act (in cases where the rate of duty referred to in Article 2 is applicable, such applicable rate of duty) or to the level not exceeding the WTO rate of duty, whichever is lower (hereinafter referred to as “effective rate of duty”).
(2)In the case where any measure prescribed in the preceding paragraph is taken, if it is considered necessary due to any particular reason, the period specified under that paragraph may, pursuant to the provision of Cabinet Order, be extended in accordance with the provision of the Economic Partnership Agreement.
(3)In cases where any measure prescribed in paragraph (1) is to be taken or has been taken with respect to specific goods, the tariff concessions applied to goods other than such specified goods may, pursuant to the provision of Cabinet Order, be modified or tariff concessions may newly be granted to goods not subject to tariff concessions, in accordance with the provision of the Economic Partnership Agreement, and the rate of duty so modified or newly granted may be applied.
(4)In cases where any emergency measure of customs duty is taken by any Party to the Economic Partnership Agreement other than Japan (referred to as “Party to the Agreement” in Article 12-4) in accordance with the provision of the Agreement (referred to as “emergency measure taken by a Party other than Japan” in the next paragraph), tariff concession may, pursuant to the provision of Cabinet Order, by specifying a country and goods subject to tariff concession, wholly or partly be suspended with respect to the specified goods and customs duty may be levied on such specified goods at a rate not exceeding the effective rate of duty.
(5)The measures prescribed in the preceding two paragraphs shall be taken with due consideration so that their effects may not exceed the extent necessary to compensate for the measures prescribed in paragraph (1) or to serve as countermeasures against the emergency measure taken by a party other than Japan and their effects on the national economy may be minimized to the extent possible.
(6)The Government shall, in cases where there is sufficient evidence to substantiate the fact of increase in imports of a specific kind of goods and the fact of serious injury, etc. to the Japanese industry caused by such increase, investigate whether these facts actually exist, if it is considered necessary.
(7)In the case where investigation referred to in the preceding paragraph has been initiated, if the fact of increase in imports of a specific kind of goods and the fact of the serious injury, etc. to the Japanese industry caused by such increase are presumed from sufficient evidence even before completion of the investigation and if it is found particularly urgently necessary for the national economy, the following measures may, pursuant to the provision of Cabinet Order, by specifying a country, goods and period, be taken in accordance with the provision of the Economic Partnership Agreement:
(i)to make no further reduction of the rate of customs duty chargeable on all of the specified goods to be imported within the specified period or on excess part of such specified goods over a certain quantity or value, in cases where such further reduction is required for such specified goods under the Economic Partnership Agreement;
(ii)to raise the rate of customs duty chargeable on all of the specified goods imported within the specified period or on excess part of such specified goods over a certain quantity or value, to the level not exceeding the effective rate of duty.
(8)The Government shall, when investigation referred to in paragraph (6) is completed, except in the case where a measure prescribed in paragraph (1) is taken, refund customs duty levied pursuant to the provision of the preceding paragraph without delay. Where the amount of customs duty levied pursuant to the provision of the preceding paragraph exceeds the amount of customs duty which would be levied had customs duty been levied under paragraph (1) on the goods specified under the preceding paragraph, imported during the period in which the measure prescribed in the preceding paragraph was taken, such excess amount of customs duty shall also be refunded.
(9)The Minister of Finance may, if it is considered necessary in order to suspend the tariff concession pursuant to the provision of paragraph (4) and levy customs duty at a rate not exceeding the effective rate of duty, seek from the Minister of Foreign Affairs, the Minister of Agriculture, Forestry and Fisheries, the Minister of Economy, Trade and Industry and other Heads of relevant Administrative Organs their opinions with respect to the country and goods to which application of tariff concession is to be suspended and the rate of customs duty to be levied.
(10)The Minister of Foreign Affairs, the Minister of Agriculture, Forestry and Fisheries, the Minister of Economy, Trade and Industry and other Heads of relevant Administrative Organs shall, when their opinions are sought from the Minister of Finance pursuant to the provision of the preceding paragraph, state, except in the case where there are any justifiable grounds, their opinions in writing within thirty days from the date on which their opinions are sought.
(11)In addition to what is provided for in the preceding paragraphs, necessary matters concerning application of these provisions shall be prescribed by Cabinet Order.
(Modification of tariff concession pertaining to specific goods under the Economic Partnership Agreement)
Article 7-8.In cases where, with respect to goods subject to modification (i.e., goods to be prescribed by Cabinet Order, to which the benefit of tariff concession is extended under the Economic Partnership Agreement subject to suspension or modification in the case where import quantity of such goods pertaining to a period specified by the Agreement exceeds a certain quantity provided for by the Agreement; hereinafter the same applies in this Article), import quantity of goods subject to modification pertaining to a period specified by the Agreement (in cases where import quantity is otherwise provided for by the Agreement, the quantity specified by Cabinet Order pursuant to the provision of the Agreement; the same applies in paragraphs (3) and (4)) exceeds, pursuant to the provision of the Economic Partnership Agreement, the quantity publicly notified, etc. in advance by the Minister of Finance as a certain quantity pertaining to such goods provided for by the Agreement (the quantity so notified, etc. is referred to as “threshold import quantity” in paragraph (4)), the rate of customs duty to be levied on such goods which are imported within a period from the first day of the second month following the month in which such excess occurs until the last day of fiscal year which includes the month in which such excess occurs (in cases where the period is otherwise provided for by the Agreement, the period specified by Cabinet Order pursuant to the provision of the Agreement; referred to as “trigger period” in item (i) and paragraph (4)) shall be the rate of duty pertaining to such goods as set forth in the following, whichever is the lowest:
(i)the effective rate of duty applicable on the day on which the trigger period commences;
(ii)the effective rate of duty applicable on the day preceding the day on which the Economic Partnership Agreement enters into force for Japan (or, in the case where the Agreement otherwise provides, the day to be specified by Cabinet Order pursuant to the provision of the Agreement);
(iii)the rate of duty to be specified by Cabinet Order as the rate of duty provided for by the Economic Partnership Agreement.
(2)The preceding paragraph shall not apply to goods subject to modification to be specified by Cabinet Order pursuant to the provision of the Economic Partnership Agreement.
(3)Paragraph (7) of Article 7-3 applies mutatis mutandis to the case where import quantity of goods subject to modification is calculated.
(4)The Minister of Finance shall make a public notice, etc. of import quantity of goods subject to modification during the period from the first day of the fiscal year concerned (the first day herein shall, in the case of goods subject to modification prescribed by Cabinet Order, be the day specified by Cabinet Order and, in the case of goods subject to modification to which the benefit of tariff concession is granted pursuant to the provision of the Economic Partnership Agreement in the fiscal year which includes the day on which the Agreement enters into force for Japan (excluding goods specified by Cabinet Order), the day on which the Agreement enters into force for Japan) to the last day of each month of that fiscal year, on or before the last day of the month following such each month and, in the case where such import quantity during the fiscal year concerned exceeds the threshold import quantity of the goods subject to modification, he shall make a public notice, etc. of the trigger period for the goods subject to modification the importation of which exceeds the threshold import quantity, on or before the day preceding the day on which the trigger period commences.
(5)Technical replacement of terms necessary for applying the preceding paragraph pertaining to the goods subject to modification specified by Cabinet Order shall be prescribed by Cabinet Order.
(Modification of tariff concession under the Economic Partnership Agreement where customs value pertaining to specific goods falls below trigger threshold price)
Article 7-9.The rate of customs duty to be levied on goods subject to tariff concession, set forth in subheading 0101.29-2-(2) of the Appended Table of the Customs Tariff Act, if customs value per each of the goods falls below the trigger threshold price (i.e., the price obtained by multiplying the trigger price of such goods prescribed by the Economic Partnership Agreement by 90/100) (goods the customs value of which falls below the trigger threshold price are referred to as “goods subject to modification of concession” in item (ii)) shall be the rate of duty as set forth in the following, whichever is the lowest:
(i)the effective rate of duty applicable on the day on which the tariff concession is modified pursuant to the provision of this Article;
(ii)the effective rate of duty applicable on the day preceding the day on which the Economic Partnership Agreement enters into force for the originating country of goods subject to modification of concession;
(iii)the rate of duty to be prescribed by Cabinet Order as the rate of duty prescribed by the Economic Partnership Agreement.
(Retaliatory duty under the Economic Partnership Agreement)
Article 7-10.When it is found necessary to protect the interest accruing directly or indirectly to Japan under the Economic Partnership Agreement, tariff concession may be suspended and customs duty may be levied at the rate within the effective rate of duty, by specifying the country and goods subject to tariff concession pursuant to the provision of Cabinet Order, for the whole or part of such specified goods, in accordance with the Economic Partnership Agreement.
(2)The Minister of Finance may, if it is considered necessary for suspension of tariff concession and levying of customs duty at a rate within the effective rate of duty in accordance with the provision of the preceding paragraph, seek opinions from the Minister of Foreign Affairs, the Minister of Agriculture, Forestry and Fisheries, the Minister of Economy, Trade and Industry and other Heads of relevant Administrative Organs with respect to the country and goods for which tariff concession is to be suspended and the rate of customs duty to be applied.
(3)The Minister of Foreign Affairs, the Minister of Agriculture, Forestry and Fisheries, the Minister of Economy, Trade and Industry and other Heads of relevant Administrative Organs shall, when opinions are sought from the Minister of Finance pursuant to the provision of the preceding paragraph, except in the case where there are any justifiable grounds, state their opinions in writing within thirty days from the date on which their opinions are sought.
(4)In addition to what is provided for in the preceding three paragraphs, necessary matters concerning application of these provisions shall be prescribed by Cabinet Order.
(Reduction of duty on products manufactured from goods exported for processing or assembly)
Article 8.With regard to products set forth in the following items, manufactured using, as their raw materials or components, goods exported from Japan on or before March 31, 2023 for processing or assembly (excluding products for which the rate of duty prescribed in the Appended Table of the Customs Tariff Act is free) and imported within one year from the date of their export permission (or, in cases where there is unavoidable reason for a period longer than one year, if approval is given by the Director General of Customs pursuant to the provision of Cabinet Order, within such longer period than one year as may be specified by the Director General of Customs), the customs duty chargeable on such products may, pursuant to the provision of Cabinet Order, be reduced within the amount calculated by multiplying the amount of customs duty to be levied on such products by the ratio of the value prescribed by Cabinet Order as the value equivalent to customs value which would be obtained had such exported goods been imported in the nature and shape in which they were exported to the customs value of such products:
(i)products falling under heading 42.02 of the Appended Table of the Customs Tariff Act, the outer surface of which is made of leather or composition leather, and products falling under heading 42.03 of that Table other than baseball gloves and mitts (limited to products manufactured, as their raw materials or components, from such goods exported from Japan as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order);
(ii)products falling under Chapter 57 and Chapters 61 to 63 of the Appended Table of the Customs Tariff Act (limited to products manufactured, as their raw materials or components, from such goods exported from Japan as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order);
(iii)uppers of footwear falling under products of subheading 6406.10-1 of the Appended Table of the Customs Tariff Act (limited to products manufactured, as their raw materials or components, from such goods exported from Japan as may be prescribed by Cabinet Order, but excluding products undergone such processing or assembly as may be prescribed by Cabinet Order).
(2)The preceding paragraph shall not apply to goods to which paragraph (1) or (3) of the next Article applies.
(Preferential tariff, etc.)
Article 8-2.The rates of customs duty to be levied on goods set forth in the following items, originating in countries the economies of which are developing and which desire extension of a special benefit concerning customs duty, if they are designated by Cabinet Order as countries for which such special benefit is appropriate to be extended (hereinafter referred to as “beneficiaries of preferences, etc.”), shall, notwithstanding the provision of Article 2, be as prescribed in these items, provided that such goods are imported on or before March 31, 2021:
(i)goods set forth in Appended Table 2, falling under Chapters 1 to 24 of the Appended Table of the Customs Tariff Act: the rates of duty as prescribed in Appended Table 2;
(ii)goods set forth in Appended Table 3 (excluding goods for which the rates of duty prescribed in the Appended Table of the Customs Tariff Act (or, in Appended Table 1 for goods set forth therein) are free), falling under Chapters 25 to 76 and 78 to 97 of the Appended Table of that Act: the rates of duty obtained by multiplying the rates of duty prescribed in the Appended Table of that Act (or, the rates of duty prescribed in Appended Table 1 for goods set forth therein) or the WTO rates of duty, whichever is lower, by the factors prescribed in Appended Table 3;
(iii)goods falling under Chapters 25 to 76 and 78 to 97 of the Appended Table of the Customs Tariff Act, other than those set forth in Appended Tables 3, 4 and 5 (excluding goods for which the rates of duty prescribed in the Appended Table of that Act (or, in Annexed Table 1 for goods set forth therein) are free): free.
(2)Notwithstanding the provision of the preceding paragraph, if any goods set forth in the items of that paragraph, originating in one of the beneficiaries of preferences, etc. are imported on or before the day as specified in that paragraph, and are found that the benefit concerning customs duty prescribed in the same paragraph is not appropriate to be extended, taking into account the degree of international competitiveness of goods originating in that beneficiary of preferences, etc. or other circumstances, such benefit may, by specifying a beneficiary of preferences, etc. (i.e., the place of origin of such goods) and goods pursuant to the provision of Cabinet Order, not be extended to the goods so specified.
(3)The rate of customs duty to be levied on goods other than those set forth in Appended Table 5, originating in beneficiaries of preferences, etc. designated as the least developed countries by the Resolution of the General Assembly of the United Nations and prescribed by Cabinet Order as the countries to which extension of the special benefit concerning preferential tariff (i.e., customs duty to be levied pursuant to the provision of paragraph (1)) is appropriate (such beneficiaries are referred to as “special beneficiaries of preferences” in the next Article) (excluding goods for which the rates of duty prescribed in the Appended Table of the Customs Tariff Act (or, in Appended Table 1, for goods set forth in that Table) and in item (i) of that paragraph are free and goods set forth in item (iii) of that paragraph) shall, notwithstanding the provision of Article 2 or item (i) or (ii) of that paragraph, be free, provided that they are imported on or before the day specified in that paragraph.
(4)Necessary matters concerning verification of origin of goods to which paragraph (1) or the preceding paragraph applies or other necessary matters concerning application of these provisions shall be prescribed by Cabinet Order.
(Suspension of application of preferential tariff, etc.)
Article 8-3.In cases where, as a result of application of the rates of duty prescribed in the items of paragraph (1) of the preceding Article, goods set forth in these items, originating in the beneficiaries of preferences, etc. (excluding special beneficiaries of preferences) are imported in such increased quantities as to cause or threaten to cause injury to the Japanese industry manufacturing the same kind of goods or other goods directly competing with such imported goods in their use, if it is found urgently necessary to protect such industry, application of that paragraph may be suspended by specifying, pursuant to the provision of Cabinet Order, goods, a period and, if necessary, a country or territory.
(2)The preceding paragraph applies mutatis mutandis to goods other than those set forth in Appended Table 5, originating in the special beneficiaries of preferences (excluding goods for which rates of customs duty prescribed in the Appended Table of the Customs Tariff Act (or, in Appended Table 1 for goods set forth in that Table) are free). In this case, the terms “the rates of customs duty prescribed in the items of paragraph (1) of the preceding Article” and “that paragraph” in the preceding paragraph shall be read as “the rates of customs duty prescribed in paragraph (1) or (3) of the preceding Article” and “paragraph (1) or (3) of that Article” respectively, and when application of paragraph (3) of the preceding Article is suspended with respect to goods to which that paragraph applies, paragraph (1) of that Article shall not apply to such goods.
(Verification of originating goods of beneficiaries of preferences, etc.)
Article 8-4.The Director General of Customs may, in the case where the benefit concerning customs duty prescribed in paragraph (1) or (3) of Article 8-2 (Preferential tariff, etc.) is extended to goods for which import declaration is made, if it is necessary to conduct verification for determining whether they are those originating in the beneficiaries of preferences, etc. (hereinafter in this paragraph referred to as “goods originating in beneficiaries of preferences, etc.”), conduct verification in the following way:
(i)by requesting an importer of such goods to provide materials which clarify that they are those originating in the beneficiary of preference, etc.;
(ii)by asking questions on such goods to a competent authority of the beneficiary of preferences, etc. (i.e., an organization competent to issue a document certifying that goods exported from a beneficiary of preferences, etc. are those originating in such beneficiary; hereinafter the same applies in this Article), exporter or producer of such goods, or by requesting such authority, exporter or producer to provide materials which clarify that they are those originating in the beneficiary of preferences, etc.;
(iii)by having customs officials conduct, with the consent of an exporter or producer of such goods, on-site examination of documents or other articles at the office of such exporter or producer or at any other necessary place;
(iv)by requesting a competent authority of a beneficiary of preferences, etc. for attendance of customs officials of Japan, with the consent of an exporter or producer of the goods concerned, on the occasion of inspection conducted by that competent authority at the office of such exporter or producer or at any other necessary place, or by requesting the competent authority to provide materials collected during such inspection.
(2)The question or request referred to in item (ii) of the preceding paragraph shall be made in writing, specifying reasonable period during which a person so questioned or requested may respond to questions or provide materials pertaining to such request.
(3)The Director General of Customs shall, when he has customs officials conduct examination referred to in item (iii) of paragraph (1), notify a beneficiary of preferences, etc. of such examination in writing, specifying reasonable period for the beneficiary of preferences, etc. to respond as to whether it consents to such examination.
(4)A request referred to in item (iv) of paragraph (1) shall be made in writing, specifying reasonable period for a competent authority of a beneficiary of preferences, etc. to respond as to whether it consents to such request.
(5)The Director General of Customs may, in the case where the situation falls under any of the following items, elect not to extend the benefit of customs duty prescribed in paragraph (1) or (3) of Article 8-2 to those goods for which such benefit is sought:
(i)where such goods do not meet the requirements for receiving such benefit;
(ii)where a person who imports such goods fails to perform the necessary procedures for receiving such benefit;
(iii)in the case where questions are asked or requests are made under item (ii) of paragraph (1), if a person so questioned or requested fails to respond to the questions or to provide materials pertaining to the requests within a period specified pursuant to the provision of paragraph (2) or if the responses to the questions or the materials provided in response to the requests are not satisfactory;
(iv)in the case where a notification referred to in paragraph (3) is issued, if a beneficiary of preferences, etc., or an exporter or producer of goods pertaining to the notification refuses the examination referred to in item (iii) of paragraph (1) or fails to respond to the notification within a period specified pursuant to the provision of paragraph (3);
(v)in the case where the request referred to in item (iv) of paragraph (1) is made, if a competent authority of the beneficiary of preferences, etc. refuses the request, fails to respond to the request within a period specified pursuant to the provision of the preceding paragraph, fails to provide materials pertaining to the request or the materials provided in response to the request are not satisfactory.
(6)The Director General of Customs shall, when the verification prescribed in paragraph (1) has been made, notify a person who imports goods pertaining to such verification of the details of his findings (including the reason therefor).
(Application of special tariff system to goods to which temporary rate of duty is applicable)
Article 8-5.For the purpose of application of paragraph (1) or (2) of Article 6, paragraph (1) or (3) of Article 7, paragraph (1) or (2) of Article 8 or paragraph (1), (4) or (8) of Article 9, of the Customs Tariff Act to those goods provided for in Articles 2 and 8-2, the term “at the rates set out in the Appended Table of this Act” in these provisions shall be read as “at the rates set out in the Appended Table of this Act (or, in cases where the rate of duty specified in Article 2, paragraph (1) of Article 7-3, paragraph (1) of Article 7-4, paragraph (1) of Article 7-6 or paragraph (1) or (3) of Article 8-2 of the Temporary Tariff Measures Act applies, such applicable rates of duty)”.
(2)Article 9-2 of the Customs Tariff Act applies mutatis mutandis to goods to be prescribed by Cabinet Order, to which rates of duty applicable within a certain limit of quantity as set out in Appended Table 1 apply.
(Tariff rate quota system under the Economic Partnership Agreement)
Article 8-6.With regard to goods to be prescribed by Cabinet Order, to which tariff concession is granted, under the Economic Partnership Agreement, within a certain limit of quantity (excluding goods provided for in the next paragraph), the benefit of tariff concession shall, within such limit, be granted to those goods imported by a person within the quantity of quota allocated to him by the Government on the basis of past records of such goods used, the anticipated quantity of such goods to be used and other necessary consideration to the national economy.
(2)With regard to goods to be prescribed by Cabinet Order, to which tariff concession is, under the Economic Partnership Agreement, granted within a certain limit of quantity, if such quantity is to be allocated by an importing country on the basis of a certificate issued by an exporting country (including territories having their own customs and trade systems) under the Agreement, the benefit of tariff concession shall be granted to those goods imported by a person within the quantity of quota allocated to that person by the Government on the basis of a certificate issued by a Party to the Agreement other than Japan.
(3)The details of method of allocation referred to in the preceding two paragraphs, procedures for receiving quota or other necessary matters concerning application of the preceding two paragraphs shall be prescribed by Cabinet Order.
(Exemption from customs duty on goods exported for processing or repair under the Economic Partnership Agreement)
Article 8-7.With regard to goods exported from Japan for processing or repair (excluding processing or repair to be prescribed by Cabinet Order) to a Party to the Economic Partnership Agreement other than Japan and subsequently imported into Japan within one year from the date of their export permission (or, in the case where there is unavoidable reason for longer period than one year, if it is approved by the Director General of Customs pursuant to the provision of Cabinet Order, then within such longer period than one year as may be specified by the Director General of Customs), customs duty to be levied on such goods shall, pursuant to the provision of Cabinet Order, be exempted in accordance with the provision of the Agreement.
(Procedures for application of reduced rate of duty, etc.)
Article 9.With regard to such goods as set forth in Appended Table 1 and prescribed by Cabinet Order, for which the rate of duty which is conditional upon such goods being used for specific purposes and is lower than the rate of duty not being conditional upon such specific purposes is prescribed in that Table (hereinafter referred to as “reduced rate of duty”), a person who seeks application of the reduced rate of duty shall follow such procedures as may be prescribed by Cabinet Order.
(2)A person who seeks the benefit of tariff concession for goods prescribed by Cabinet Order, the tariff concession of which is, under the Economic Partnership Agreement, granted on condition that they are used for specific purposes shall follow such procedures as may be prescribed by Cabinet Order.
(Application of benefit of tariff concession pertaining to raw materials for manufacture under the Economic Partnership Agreement)
Article 9-2.With regard to goods to which the tariff concession under the Economic Partnership Agreement is extended on condition that they are used as raw materials for manufacture of feeds under the customs supervision, if such goods are those imported as raw materials set forth in the following items and if the manufacture provided for in these items is completed at a manufacturing factory approved by the Director General of Customs within one year from the date of import permission of such goods, the benefit of tariff concession shall, pursuant to the provision of Cabinet Order, be extended to such goods:
(i)goods set forth in subheading 1001.99 of the Appended Table of the Customs Tariff Act, for use in the manufacture of feeds prescribed by Cabinet Order;
(ii)goods set forth in subheading 1003.90 of the Appended Table of the Customs Tariff Act, for use in the manufacture of feeds prescribed by Cabinet Order.
(2)The Director General of Customs shall, if it is considered that there will be no difficulty in ensuring the implementation of the Economic Partnership Agreement referred to in the preceding paragraph, this Act or the Customs Act, give approval referred to in the preceding paragraph.
(3)The Director General of Customs may, in the case where application of benefit of tariff concession is sought pursuant to the provision of paragraph (1), require security to be provided in an amount equivalent to the difference between the amount of customs duty calculated at the rate of duty not subject to the condition that they are used as raw materials for manufacture of feeds under the customs supervision and the amount of customs duty calculated at the rate of duty applicable under the benefit of tariff concession.
(4)When the manufacture provided for in the items of paragraph (1) is conducted, except in the case where the Director General of Customs recognizes that there will be no difficulty in verifying the manufacture from raw materials to which the benefit of tariff concession is extended pursuant to the provision of that paragraph (hereinafter referred to as “raw materials for manufacture” in this Article) and hence approves their mixed use, no raw materials for manufacture shall be used in combination with any other raw materials of the same kind.
(5)When the manufacture from raw materials for manufacture has been completed, the manufacturer concerned shall, pursuant to the provision of Cabinet Order, notify the customs of the quantities of such raw materials used and the quantities of products manufactured therefrom, and shall have such products inspected by the customs each time such notification is made or whenever necessary.
(6)The raw materials for manufacture set forth in the items of paragraph (1) shall not be used for purposes other than those of manufacture provided for in these items nor be transferred for purposes other than those of manufacture provided for in these items, within one year from the date of their import permission; provided, however, that this does not apply to the case where approval is, pursuant to the provision of Cabinet Order, given by the Director General of Customs for any unavoidable reason.
(7)In the case where the situation falls under any of the cases referred to in the following items, customs duty in an amount equivalent to the difference between the amount of customs duty calculated at the rate of duty not subject to the condition that they are used as raw materials for manufacture of feeds under the customs supervision and the amount of customs duty calculated at the rate of duty applicable under the benefit of tariff concession shall immediately be collected from a person involved in such situation; provided, however, that where raw materials for manufacture or products manufactured therefrom were lost due to a disaster or for other unavoidable reason or were destroyed with the approval of the Director General of Customs, the customs duty shall not be collected, and where the raw materials for manufacture for which approval referred to in the proviso to the preceding paragraph was given have depreciated in value due to deterioration or damage or for other unavoidable reason, the customs duty may be reduced in accordance with in paragraph (1) of Article 10 (Reduction or refund of customs duty in the case of deterioration, damage, etc.) of the Customs Tariff Act:
(i)where approval referred to in the proviso to the preceding paragraph has been given with respect to the raw materials for manufacture set forth in the items of paragraph (1), where raw materials for manufacture have been used, without such approval, for purposes other than those of manufacture provided for in these items or have been transferred for purposes other than those of manufacture provided for in these items, or where, within one year from the date of their import permission, a notification prescribed in paragraph (5) has not been made or the manufacture has not been completed;
(ii)where the raw materials for manufacture have been used for manufacture at a place other than a manufacturing factory approved by the Director General of Customs pursuant to the provision of paragraph (1) or where they have been used in violation of paragraph (4).
(8)A person who has obtained approval of a manufacturing factory under paragraph (1) shall, pursuant to the provision of Cabinet Order, pay service fee to the customs in an amount fixed by Cabinet Order on the basis of the total floor space of the manufacturing factory, the validity period of such approval and the types of customs services pertaining to such factory.
(Restriction on use for purposes other than those intended, etc.)
Article 10.Goods for which customs duty is exempted pursuant to the provision of Article 4 or goods to which reduced rate of duty set forth in paragraph (1) of Article 9 or the benefit of tariff concession set forth in paragraph (2) of that Article is applied shall, within two years from the date of their import permission, not be used or be transferred for use for the purposes other than those for which customs duty is so exempted or the reduced rate of duty or the benefit of tariff concession is so applied; provided, however, that this does not apply to the case where approval is, pursuant to the provision of Cabinet Order, given by the Director General of Customs for any unavoidable reason.
(Collection of customs duty where approval of use, etc. for purposes other than those intended is given)
Article 11.In cases where approval referred to in the proviso to the preceding Article is given or where goods referred to in that Article are, without such approval, used or transferred for use for the purposes other than those provided for in the same Article, customs duty in an amount as specified in each of the following items for the category of goods as set forth respectively therein shall immediately be collected from a person involved in such situations. In this case, if the value of such goods has decreased due to loss or deterioration caused as a result of their use or for other unavoidable reason, customs duty may be reduced in accordance with paragraph (1) of Article 10 (Reduction of customs duty due to deterioration or damage) of the Customs Tariff Act:
(i)goods for which customs duty is exempted pursuant to the provision of Article 4: the amount so exempted;
(ii)goods to which the reduced rate of duty referred to in paragraph (1) of Article 9 or the benefit of tariff concession referred to in paragraph (2) of that Article is extended: the difference between the amount of customs duty calculated at the rate of duty applicable to goods not subject to the condition of using for specific purposes and the amount of customs duty calculated at the reduced rate of duty or at the rate of duty under the benefit of tariff concession.
(Uses of duty-exempt goods, etc., for purposes other than those intended)
Article 12.Article 20-3 (Uses of duty-reduced or duty-exempt goods for purposes other than those intended) of the Customs Tariff Act applies mutatis mutandis to the case where goods for which customs duty is exempted pursuant to the provision of Article 4 or to which the reduced rate of duty referred to in paragraph (1) of Article 9 or the benefit of tariff concession referred to in paragraph (2) of that Article or paragraph (1) of Article 9-2 is applied, are used or are transferred for use for purposes other than those for which customs duty is so exempted or the reduced rate of duty or the benefit of tariff concession is so applied.
(Special provision for request for reassessment)
Article 12-2.When, in the situation where the benefit of tariff concession is not applied to goods pertaining to a declaration for payment (i.e., declaration prescribed in paragraph (1) of Article 7 (Declaration) of the Customs Act or amended declaration prescribed in paragraph (1) Article 7-14 (Amended declaration) of that Act; hereinafter the same applies in this Article) (limited to goods regarded as originating goods under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as “Trans-Pacific Comprehensive and Progressive Agreement”)), the amount of duty payable on such goods (or, in cases where reassessment prescribed in paragraph (1) or (3) of Article 7-16 of that Act (hereinafter in this Article referred to as “reassessment”) is made for such amount of duty, then the amount of duty after such reassessment) would be excessive had the benefit of tariff concession been applied, a person who has filed the declaration for payment may, pursuant to the provision of Cabinet Order, request the Director General of Customs to make the reassessment prescribed in paragraph (1) of Article 7-15 (Request for reassessment) of that Act with respect to the amount of duty pertaining to the declaration for payment (if reassessment is made for the amount of duty, the amount of duty after such reassessment), provided that such request is made within one year from the day on which import permission is given to such goods.
(Request for determination for official assessment)
Article 12-3.In the case where the Director General of Customs has determined, pursuant to the provision of paragraph (1) of Article 8 (Determination for official assessment) of the Customs Act, the amount of duty payable pertaining to customs duty of goods to which the official assessment system provided for in item (ii) of paragraph (1) of Article 6-2 (Systems for determining amount of duty) of that Act applies (limited to those goods regarded as originating goods of the Trans-Pacific Comprehensive and Progressive Agreement pursuant to the provision thereof) without applying the benefit of tariff concession to such goods under the Agreement, if the amount of duty payable pertaining to such determination (or, in the case where determination prescribed in paragraph (3) of Article 8 of that Act has been made, the amount of duty after such determination) would be excessive had such benefit of tariff concession been applied to such goods, a person who has imported such goods may, pursuant to the provision of Cabinet Order, request the Director General of Customs to make determination prescribed in paragraph (3) of that Article with respect to correction of the amount of duty pertaining to such determination, provided that such request is made within one year from the day on which import permission of such goods is given (in the case of postal items provided for in item (ii)(b) of paragraph (1) of Article 6-2 of that Act, the day on which they are presented from Japan Post Co., Ltd.).
(2)The Director General of Customs shall, in cases where a request for determination prescribed in the preceding paragraph is made, examine whether the goods pertaining to such request are originating goods of the Trans-Pacific Comprehensive and Progressive Agreement pursuant to the provision thereof and any other necessary matters.
(3)The Director General of Customs shall, when he does not make a determination prescribed in paragraph (3) of Article 8 of the Customs Act after examination referred to in the preceding paragraph, notify a person who has so requested that there are no grounds for making such determination.
(4)For the purpose of application of paragraph (2) of Article 13 (Refund and allocation) of the Customs Act in the case where the interest on refund provided for in that paragraph is calculated with respect to payment in excess pertaining to the amount of customs duty payable the amount of which has decreased (including delinquent duty pertaining to such customs duty) as a result of determination made under paragraph (3) of Article 8 of that Act in response to the request referred to in paragraph (1), the terms “the reassessment made in response to the request for reassessment”, “the request for such reassessment” and “such reassessment” in item (ii) of paragraph (2) of Article 13 of that Act shall be read as “the determination for official assessment made in response to the request referred to in paragraph (1) of Article 12-3 (Request for determination for official assessment) of the Temporary Tariff Measures Act”, “the request” and “such determination”, respectively.
(Verification of originating goods of a Party under the Economic Partnership Agreement)
Article 12-4.The Director General of Customs may, in the case where the benefit of tariff concession is applied, under the Economic Partnership Agreement, to goods for which import declaration is made, if it is necessary to verify for ascertaining whether they are those originating in the Party to the Agreement pursuant to the provision thereof (hereinafter in this paragraph referred to as “originating goods of the Party”), verify, pursuant to the provision of the Agreement, in the following way:
(i)by requesting an importer of such goods to provide materials which clarify that they are those originating in the Party;
(ii)by asking questions on such goods to a competent authority of the Party to the Agreement (i.e., an organization competent to issue a document certifying that goods exported from a Party to the Agreement are those originating in the Party or competent to authorize a person who is entitled to prepare such document; hereinafter the same applies in item (iv)), the customs authority of the Party to the Agreement (i.e., the authority which enforces the laws and regulations of the Party, equivalent to the Customs Act, the Customs Tariff Act and other Acts relating to customs duty) or an exporter or producer of such goods, or by requesting such authorities, exporter or producer to provide materials which clarify that they are those originating in the Party;
(iii)by having customs officials conduct, with the consent of an exporter or producer of such goods, on-site examination of documents or other articles at the office of such exporter or producer or at any other necessary place;
(iv)by requesting the competent authority of the Party to the Agreement, etc. for attendance of customs officials of Japan, with the consent of an exporter or producer of such goods, on the occasion of inspection conducted by that competent authority at the office of such exporter or producer or at any other necessary place, or by requesting the competent authority to provide materials collected during such inspection;
(v)by using other methods provided for in the Economic Partnership Agreement.
(2)The questions or request referred to in item (ii) of the preceding paragraph shall be made in writing, specifying reasonable period during which a person so questioned or requested may respond to questions or provide materials pertaining to such request.
(3)The Director General of Customs shall, when he has customs officials conduct examination referred to in item (iii) of paragraph (1), notify an exporter or producer referred to in that item, or the Party to the Agreement where such exporter or producer has domicile of such examination in writing, specifying reasonable period for the exporter, producer or the Party to respond as to whether it consents to such examination.
(4)The Director General of Customs, in the case where he has customs officials conduct investigation referred to in item (iii) of paragraph (1) with respect to goods falling under those set forth in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin) to Chapter 4 (Textile and Apparel Goods) of the Trans-Pacific Comprehensive and Progressive Agreement, if he, in consideration of the details of a declaration pertaining to goods covered by the investigation or other information held by the customs, considers that the notification prescribed in that paragraph is likely to facilitate any illegal or wrongful act and to make it difficult to determine whether such goods are originating goods of that Agreement pursuant to the provision thereof, such notification, notwithstanding the provision of the preceding paragraph, is not required to be issued.
(5)The request referred to in item (iv) of paragraph (1) shall be made in writing, specifying reasonable period for the Party to the Agreement to respond as to whether it consents to such request.
(6)The Director General of Customs may, in the case where the situations fall under any of the following items, elect, pursuant to the provision of the Economic Partnership Agreement, not to extend the benefit of tariff concession to goods for which such benefit is sought under the Agreement:
(i)where such goods do not meet the requirements for receiving such benefit;
(ii)where a person who imports such goods fails to perform necessary procedures for receiving such benefit;
(iii)in the case where questions are asked or requests are made under item (ii) of paragraph (1), if a person so questioned or requested fails to respond to such questions or to provide materials pertaining to such requests within a period specified pursuant to the provision of paragraph (2) or if the response to the questions or materials provided in response to the requests are not satisfactory;
(iv)where the Party to the Agreement, or an exporter or producer referred to in item (iii) of paragraph (1) refuses the examination referred to in that item or fails to respond to the notification within a period specified pursuant to the provision of paragraph (3);
(v)in the case where the request referred to in item (iv) of paragraph (1) is made, if the Party to the Agreement refuses such request, fails to respond to such request within a period specified pursuant to the provision of the preceding paragraph, fails to provide materials pertaining to such request or the materials provided in response to such request is not satisfactory;
(vi)where the situation falls under any other matters provided for in the Economic Partnership Agreement.
(7)The Director General of Customs shall, when he has conducted the verification prescribed in paragraph (1), notify the person who is the counterparty of such verification (limited to the person specified under the Economic Partnership Agreement) of the details of his findings (including the reason therefor) in accordance with the Agreement.
(Investigation under the Trans-Pacific Comprehensive and Progressive Agreement)
Article 12-5.The Director General of Customs, in the case where there is the fact sufficient to suspect the act that violates the Customs Act, the Customs Tariff Act or other Act relating to customs duty with respect to importation of goods falling under those set forth in Annex 4-A (Textiles and Apparel Product-Specific Rules of Origin) to Chapter 4 (Textile and Apparel Goods) of the Trans-Pacific Comprehensive and Progressive Agreement, if it is necessary to conduct investigation for verification of such fact, may, in accordance with the provision of that Agreement, have customs officials conduct, with the consent of an exporter or producer of such goods, on-site investigation of documents and other articles at the office of the exporter or producer.
(2)Paragraphs (3) and (4) of the preceding Article and paragraph (7) of that Article applies mutatis mutandis to the case where the Director General of Customs intends to have customs officials conduct investigation and to the case where verification referred to in the preceding paragraph has been conducted, respectively. In this case, the term “an exporter or producer referred to in that item, or the Party to the Agreement where the importer or producer has domicile” in paragraph (3) of that Article shall be read as “an exporter or producer referred to in paragraph (1) of the next Article” and the term “such goods are originating goods of that Agreement pursuant to the provision thereof” in paragraph (4) of that Article shall be read as “such act violates the Customs Act, the Customs Tariff Act or other Act relating to customs duty”.
(Special provisions for determination of goods for duty assessment pertaining to the integrated industrial area for international logistics center)
Article 13.In the case where foreign goods obtained under work using customs manufacturing procedures provided for in paragraph (1) of Article 56 of the Customs Act in an integrated customs area the permission of which has been given pursuant to the provision of paragraph (2) of Article 45 (Designated customs areas, etc.) of the Act on Special Measures for the Promotion and Development of Okinawa (Act No. 14 of 2002) or in a customs factory the permission of which has been given pursuant to the provision of paragraph (3) of that Article, are imported on or before March 31, 2021, if it is stated in a written import declaration to be filed pursuant to the provision of paragraph (2) of Article 7 (Declaration) of the Customs Act or in a written special declaration provided for in paragraph (1) of Article 7-2 (Special provisions for declaration) of that Act that application of the provision of the main clause of paragraph (1) of Article 4 of that Act (Time of determination of goods for duty assessment) is requested for determination of customs duty pertaining to such goods, the main clause of that paragraph shall, notwithstanding the provision of the proviso to that paragraph pertaining to item (ii) of that paragraph, apply for determination of customs duty pertaining to such goods (“customs factory” as used herein includes an area which is, pursuant to the provision of paragraph (2) of Article 61-5 of the Customs Act, deemed to have been given permission referred to in paragraph (1) of Article 56 (Permission of a customs factory) of that Act upon notification prescribed in paragraph (1) of Article 61-5 (Special Provisions for permission of customs factory) of the Customs Act made by a person who has obtained authorization referred to in paragraph (1) of Article 43 (Authorization of business in the integrated industrial area for international logistics center) of the Act on Special Measures for the Promotion and Development of Okinawa (limited to authorization pertaining to business set forth in item (ii) of that paragraph) and which pertains to the land or facilities intended to be used for the business pertaining to such authorization, located or situated within the area of the integrated industrial area for international logistics center provided for in item (ii) of paragraph (2) of Article 41 (Preparation of a plan for industrial integration for international logistics center) of that Act, as prescribed in a proposed plan for industrial integration for international logistics center provided for in paragraph (1) of Article 42 (Progress report, etc. on the plan of the industrial integration for international logistics center) of that Act).
(2)The preceding paragraph shall not apply to goods designated by Cabinet Order as those to which application of that paragraph is not appropriate, taking into account the effect on Japanese industry, etc.
(Exemption from customs duty on personal effects of passengers departing from Okinawa Prefecture)
Article 14.With regard to goods purchased by passengers departing from the district of Okinawa Prefecture for an area of Japan other than the district of Okinawa, for personal use and within the amount prescribed by Cabinet Order, from retailers approved, pursuant to the provision of Cabinet Order, by the Director General of Customs, at the passenger terminal facility, etc. as provided for in Article 26 (Exemption from customs duty in the case where passengers depart from the district, bringing with them imported goods) of the Act on Special Measures for the Promotion and Development of Okinawa or with regard to goods purchased by such passengers, for personal use and within the amount prescribed by Cabinet Order, from such retailers at the specific sales facilities provided for in that Article and delivered at the passenger terminal facility, etc., and imported at the passenger terminal facility, etc. (limited to those taken out as accompanied goods at the time of departure from the district), customs duty chargeable thereon shall be exempted for the period until March 31, 2022.
(2)In cases where goods exempted from customs duty pursuant to the provision of the preceding paragraph are used for purposes other than for personal purposes or are not taken out at the time of departure from the district as provided for in that paragraph, then customs duty exempted pursuant to the provision of that paragraph shall immediately be collected.
(3)The Director General of Customs may, in cases where retailers who have obtained approval referred to in paragraph (1) violate the provisions of the Customs Act or other laws and regulations relating to customs duty, revoke such approval.
(4)Procedures for exemption from customs duty prescribed in paragraph (1) and any other necessary matters concerning application of provisions of the preceding three paragraphs shall be prescribed by Cabinet Order.
(Authority of customs officials)
Article 15.Item (v) of paragraph (1) of Article 105 (Authority of customs officials) of the Customs Act shall apply mutatis mutandis to the cases where customs duty is exempted pursuant to the provision of Article 4 or where reduced rate of duty referred to in paragraph (1) of Article 9 or the benefit of tariff concession referred to in paragraph (2) of that Article or paragraph (1) of Article 9-2 is applied. In this case, if the situation relates to paragraph (1) of Article 9, the term “goods for which customs duty is reduced or exempted” in that item shall be read as “goods for which customs duty is reduced” and if the situation relates to paragraph (2) of Article 9 or paragraph (1) of Article 9-2, the term “goods for which customs duty is reduced or exempted” in the same item shall be read as “goods to which the benefit of tariff concession is applied”.
(2)When a customs official performs his official duties pursuant to the provision of the preceding paragraph, he shall carry his certificate for identification and, if requested by any person concerned, produce the certificate to such person.
(3)The authority prescribed in paragraph (1) shall not be construed as being admitted for investigation of criminal offences.
(Penalty)
Article 16.A person who falls under any of the following items shall be punished by imprisonment with work for not more than one year or a fine not exceeding two million yen:
(i)a person who, in violation of paragraph (6) of Article 9-2, uses raw materials for manufacture referred to in that paragraph or transfers such raw materials for use, for purposes other than those intended;
(ii)a person who, in violation of Article 10, uses goods referred to in that Article or transfers such goods for use, for purposes other than those provided for in that Article.
Article 17.A person who refuses, hinders or evades inspection or examination prescribed in item (v) of paragraph (1) of Article 105 (Authority of customs official pertaining to raw materials for manufacture, etc.) of the Customs Act, as applied mutatis mutandis pursuant to paragraph (1) of Article 15 shall be punished by imprisonment with work for not more than one year or a fine not exceeding five hundred thousand yen.
Article 18.Where any representative of a juridical person or an agent, employee or other worker of a juridical person or of an individual has committed any of the offences referred to in the preceding two Articles in connection with the business activities or the property of the juridical person or individual, not only is the offender punished but also the juridical person or individual is punished by a fine prescribed in these Articles.
(Investigation and disposition of criminal cases)
Article 19.Chapter 11 (Investigation and disposition of criminal cases) of the Customs Act applies mutatis mutandis to investigation and disposition of criminal cases referred to in the preceding three Articles.