2012年1月31日火曜日

METI overhaul export license system of Japan

On Jan 28, 2012, METI announced the draft of massive overhaul in export license application procedures for seeking public comment.  These are range of notifications and information with license application and supporting documents forms.  The due date of public comment is by Feb 26, 2012.  Because the change is in notification level by METI, not change of law or ministerial ordinance, it is expected to be officially announced and enforce around March or April 2012.

The draft of notifications are available in below government web site.  (Please be noted these are in Japanese only, no English translation is available.)

http://search.e-gov.go.jp/servlet/Public?CLASSNAME=PCMMSTDETAIL&id=595112007&Mode=0

I don't yet look through all documents, but there is significant impact to traders, especially in bulk license system.  METI introduce a new type of General Bulk License (or split into two types of General Bulk License).  First, in order to get existing type of General Bulk License, as a new application requirement, on-site audit by METI officer will be introduced.  Currently, the main requirement is to implement ICP and fill in designated "Check List" form, but from perhaps next fiscal year, ICP implementation will be verified by METI officer by visiting a company before granting bulk license.  On the other hand, METI introduce a new type of "simplified" General Bulk License, which is only for export to White Countries, where low risk countries in export compliance such as North America, EU, Australia, New Zealand, and Korea etc.  This "simplified" General Bulk License is NOT required to ICP implementation in export operation, and just registration of responsible person is enough by application through online.

This change is considered as relax of control to low risk countries, but at the same time, tighten the control of bulk license to the other countries by introducing on-site audit beforehand.

2012年1月24日火曜日

Japan-Peru EPA enter into force on March 1, 2012

On Jan 24, Ministry of Foreign Affairs of Japan ("MOFA") announced EPA between Peru and Japan will enter into force on March 1, 2012.

http://www.mofa.go.jp/announce/announce/2012/1/0124_01.html

The EPA was signed on May 31, 2011 after seven negotiating sessions since 2009. For Japan, the EPA with Peru is the 13th EPA that Japan has concluded, and the third with the Latin American economies, following Mexico and Chile. In fiscal year 2010, Japan exported US$ 1.1 billion worth of goods to Peru, while importing US$ 2.5 billion worth of goods from Peru. Tariffs on about 99 percent of total trade will be abolished between the two countries within 10 years after implementation of the EPA.


Peru’s import duty on certain industrial items, currently at nine percent for most of items, such as cars, automotive parts, steel products, machinery, and electrical items, will be reduced either progressively or immediately to zero percent in the 10th year.

Japan’s import duties on almost all industrial items will immediately be duty free upon implementation of the EPA. Import duties on some agricultural products will be reduced through a tariff quota system or progressively reduced within 10 years, such as pork, chicken, asparagus, and corn. However, some of Japan’s sensitive agricultural products are excluded from the tariff reduction, such as rice, wheat, and beef.

The noteworthy point of the EPA with Peru is the origin of goods certification system. A self-declared Certificate of Origin (“CO”) method is adopted in Japan-Peru EPA and can be issued by approved exporter, while an ordinary preferential CO issued by designated government authority (in Japan, issued by Japan Chamber of Commerce & Industry) is also available which is the common method in other EPAs Japan have concluded. An exporter who make use of Japan-Peru EPA can choose either method. The self-declaration CO system is expected to help exporters to minimize administrative costs and lead-time in export transactions. 

So far, self-declaration CO systems is available only for Japan-Swiss EPA, and will be available in Japan-Mexico EPA shortly by amending existing agreement.

2012年1月17日火曜日

Japan Customs Posts Rules of Origin Outline for EPA

Japan Customs web site provide English information, but notoriously it is far less than original information in Japanese.  Recently, Japan Customs posts EPA Rule of Origin guidance in power point style pdf in web site as below.

http://www.customs.go.jp/english/origin/rules_of_origin_epa.pdf

This material is sufficient enough basic level for beginner and mostly exact translation of original material in Japanese.

Advance level guidance material is actually available in Japan Customs web site as below, but again, the material is not available in English.

http://www.customs.go.jp/kyotsu/kokusai/seido_tetsuduki/gensanchi.htm

2012年1月16日月曜日

Singapore adopt Advanced Export Declaration (AED) from 1 April 2013

Singapore Customs announced on Jan 12, 2011 that they will implement Advance Export Declaration (AED) for all exports from 1 Apr 2013.

Currently, Singapore Customs requires advance customs export declarations only for controlled items (such as Strategic controlled goods under Tier 1 individual license) or exports by land.  Export customs declaration of non-controlled items by sea and air are actually allowed to be made within three days of the goods leaving Singapore under existing administrative exemption (IE Notice No. 2/76).  This exemption rule will be rescinded with effect from 1 Apr 2013.

In order to allow the industry sufficient lead time to complete the necessary changes to their work processes, Singapore Customs has announced the implementation date of 1 Apr 2013 in advance. In addition, there will be an 18-month adjustment period starting from 1 Apr 2013 to 31 Sep 2014. During the adjustment period, traders will generally not be penalised by Singapore Customs for non-compliance with AED requirements. However, all other customs offences and penalties will still be applicable during the AED adjustment period.

According to the media release by Singapore Customs, "this regulation development aims to strengthen Singapore's supply chain security and align its export declaration practices with international norm."
Yes, from AEO mutual recognition perspective, and also from Security Trade Control (international regimes as as Wassenaar Arrangement) perspective, this practice is norm for other countries, Japan, US, China, Australia as well as EU. 

I'm accustomed to Japan's strict customs declaration procedure, so "the export declaration practice after leaving the goods" in Singapore has been something incredible, personally for me.  This regulatory development in Singapore makes sense and is thought as "back to normal".


(Reference:  Singapore Customs web site)
Circular:  http://www.customs.gov.sg/NR/rdonlyres/6CEA916D-F762-46EE-9090-2D25FB3E3BDE/28740/Circular012012AEDImplementation1.pdf
Media Release:  http://www.customs.gov.sg/NR/rdonlyres/6185D945-DC37-4EA6-B5B7-3EC35CC8C60E/28738/PressReleaseonAEDImplementation_FinalWeb.pdf

2012年1月9日月曜日

Singapore Customs Updates STS Handbook

On December 1, 2011, Singapore Customs updated STS Hand book on their web site.
This is to reflect the update of TradeNet to Version 4.1 on January 1, 2012.  So, no significant change of legal framework by itself.  There are some changes in export declaration procedures and processing time in Tier 2/3 permit.  The STS Hand book is available in Singapore Customs web site as below.

http://www.customs.gov.sg/stgc/topNav/res/Publications.htm

However, for traders, it is inconvenient that there is no indication what parts in the STS Hand book were updated.  So, my colleagues in Singapore kindly made comparison chart of what part of STS Hand book were update in Trade Alert as blow.

http://www.bryancaveconsulting.com/sitebranches/publications/docs/BCIC%20Export%20Control%20Alert%20(STS)-Jan%202012.pdf

(Note:  I find typing error in middle of page 2 of above Trade Alert. 
4.2 - "How to declare a Tier 2 permit in TradeNet 4.1?" should be 4.6.
In same manner in the left column, 4.2.1 should be as 4.6.1.)

2012年1月4日水曜日

Malaysia STA update

I find Malaysia MITI web site for Strategic Trade Act ("STA") 2010 is now beautifully streamlined.  Until last month, the information was like "just pasted without order".

I was so busy in December for project relating to FTA, so I missed writing the article of Malaysia export control update, which was announced early December.
The significant (and welcomed) change for trader is transshipment permit is no longer required for 5A2 and 5B2 (encryption items) as long as it meets the requirement of Regulation 25.

See the English version of this notification as below:

http://www.miti.gov.my/cms/documentstorage/com.tms.cms.document.Document_21ed49c8-c0a81573-4c6f4c6f-caa55209/Circular%20on%20the%20Amendments%20to%20the%20Strategic%20Trade%20Regulations%202010.pdf

2012年1月1日日曜日

Singapore slightly update export control list Jan 01, 2012

I come to know via Singapore Customs news letter on Dec 29, 2011, Singapore will update its export control list on 1st Jan 2012 in order to reflect latest amendment of international regimes such as NSG, AG, MTCR and WA.  The news source is as follows.

http://www.customs.gov.sg/stgc/leftNav/str/Updates.htm

I quickly looked through the list and find the update is only limited to Category 1C351, 2A001, Category 3, Category 4, Category 5 - part I, and small number of deletion in Category 6, 7, and 8.
It is basically deletion and relaxation of items with some major changes in recent a few years.
The summary can be found in http://www.customs.gov.sg/NR/rdonlyres/F855FE58-01E3-4D86-B4CD-761306C37630/28694/StrategicGoodsControlAmendmentOrder2011.pdf

Singapore's policy in amendment of export control list is basically to follow EU dual-use items list.
As EU list is slow to reflect the update of international regimes, the latest EU list is still Regulation 428/2009.
http://trade.ec.europa.eu/doclib/docs/2009/june/tradoc_143390.pdf

While US and Japan have already reflected the Wassenaar list of December 2010 (e.g. US EAR on May 2011 and Japan list on July 2011), there has been discrepancy of list (items addition/deletion, and difference of technical parameter etc) between Singapore list between other nation's list.  I hope Singapore's decision is welcomed for global traders.  As soon as EU revise its list, Singapore will also update entirely its export control list upon release of the revised EU’s control list.

The inconvenient point for global traders are the existing export control list, or "Strategic Goods (Control) Order 2010" is not amended on Singapore Customs web site, therefore traders need to refer to both new list - the "Strategic Goods (Control) (Amendment) Order 2011", and the existing list "Strategic Goods (Control) Order 2010" when referring to the export control list.  In other words, for certain period until whole list is revised, traders need to carefully refer two lists.