The tariff concession schedule is available in METI web site as “Annex 1: Schedules in relation to Article 19” which shows preferential tariff rate of applicable item agreed in this EPA. Traders are encouraged to examine whether the HS code of trading goods are covered in this EPA. We would like to give caution some operational aspects in making use of this Japan-India EPA in following points.
Rule of Origin (“ROO”) requirement in General Rule
In verification of eligibility of origin of goods, the Japan-India EPA ROO have General Rule and Product Specific Rules (“PSR”). The goods except those in the PSR list must satisfy the General Rule in order to qualify for the Japan-India EPA preferential tariffs. Under the general rule, the qualification of origin is described as "CTSH (change in HS code at the 6-digit level) and local content of not less than 35%”. The “and” indicates that both criteria must be satisfied for the goods to qualify for preferential tariff. This ROO may be operational challenge for traders, as all other EPAs Japan have implemented have rule of “either” HS code change or local value content percentage.
GSP tariff is no longer available in importing Indian items into Japan
Under the Generalized System of Preferences (“GSP”), GSP preferential tariff has been available to use to Indian origin items in importing into Japan. Upon implementation of Japan-India EPA, basically GSP tariff is not applied to Indian origin items except the case GAP tariff is lower than EPA tariff. Traders who have made use of GSP tariff in trade with India need to take care of the lose of validity of GAP scheme with India upon August 1, 2011. In addition, type of Certificate of Origin (“CO”) is different, GSP require form A, but the Japan-India EPA require the designated CO format called “IJCEPA”. In import declaration in Japan, CO type form A cannot be used for claiming the preferential tariff of EPA.
Other technical notes in Japan-India EPA.
- HS code: HS2007 version
- Third Country Invoice: Available to use. Need to fill in Field 7 and 8 on CO form IJCEPA.
- For the import of the goods which value are under JPY200,000 into Japan, the CO submission to Customs can be exempted in claiming EPA preferential tariff.