Japan METI Streamlines Procedures for Export License

On 1 April 2012, the Ministry of Economy, Trade and Industry of Japan (“METI”) issued a notification introducing changes in application procedures for individual and general bulk export license for dual-use goods. The notification includes changes to:


i) Single-use License

The notification introduces a new format for End-User Certificate (“EUC”). The EUC is a document signed by the foreign importer or ultimate end-user which is required for application of single-use export license. The notification requires applicants to submit the revised EUC as supporting documents when applying for single-use license. The new EUC format takes effect on 1 April 2012 and the previous EUC format will be valid until 1 July 2012 .An English version of the new EUC format is available on the METI web site.

ii) General Bulk License

The notification splits the existing general bulk license (locally called “Ippan Houkatsu” export license) into two categories:

a. White Country Bulk License

Traders looking to export certain non-sensitive dual-use items to white countries can apply for white country bulk licenses. Requirements for this license are less stringent – only registration of responsible executives and staff involved in classification are required; an Internal Compliance Program (“ICP”) is not required. Application for the license can only be done through the NACCS online system.

b. Special General Bulk License (locally called “Tokuichi Houkatsu”):

This license allows export of certain non-sensitive dual-use items to various countries except high risk countries such as Iran, North Korea, Iraq, and United Nations (“UN”) embargoed countries. The details of eligible items and destination is included in a matrix chart included in the notification. Existing holders of general bulk license will have their licenses automatically converted to special general bulk license automatically. New applicants for the special general bulk license are required to undergo an on-site pre-audit by METI in addition to the existing requirement to implement ICP and registration with METI. Existing general bulk license holders will not be required to undergo on-site audits by METI for license renewal.

The above mentioned new bulk license scheme takes effect on 1 July 2012.

What is US ECCN 0Y521?

US ECCN 0Y521 is new number which is used for items not elsewhere classified on the CCL, functioning as a temporarily "holding" category, such as emerging technology.
The BIS has issued a final rule effective April 13, amends the EAR by establishing new ECCN 0Y521.

Japan - Canada start EPA negotiation

On March 25, 2012, METI announced in their press release that Japan and Canada launch bilateral EPA negotiation after joint-study by both countries.

http://www.meti.go.jp/press/2011/03/20120325001/20120325001.html

The schedule will be discussed later between two countries.

Japan start EPA negotiation with Mongolia

On March 12, 2012, METI and MOFA jointly announced Japan and Mongolia will enter into EPA negotiation.

http://www.meti.go.jp/press/2011/03/20120312010/20120312010.pdf

Mongolia have never had FTA with other country, it is their first FTA for Mongolia.
For Japan, considering small trade volume with Mongolia, it would be no significant impact to Japanese economy, however, the benefit would be "access to rich natural resources" in Mongolia.
No time frame is indicated in the press release, just stated the negotiation will start "as soon as possible".

Amending PSR in Japan-Mexico EPA

With amending protocol of Japan-Mexico EPA effective on April 1st, 2012, certain Product Specific Rule ("PSR") in Annex IV are amended accordingly in order to reflect actual industry practice and convenience of traders.  One of the examples are as follows.

For HS code, 8415.90, 8512.90, and 9032.90 (They are mostly automotive parts)

• Existing PSR (before amending):  CTH only (Change of Tariff Heading or 4 digits change in HS code)
• New PSR (after April 1, 2012):  CTH or VA40% (Value Addition more than 40%)

This change means trader has option to choose CTH or VA40%.
Oh, please take care.  HS code in PSR of Japan-Mexico EPA is HS 2002 version.

(Source:  http://www.meti.go.jp/policy/trade_policy/epa/pdf/japan%20mexico-PSR120305.pdf )

Amended EPA between Japan and Mexico implemented on April 1, 2012

METI and MOFA announced in its press release on March 3 that amending protocol of Japan - Mexico EPA will enter into force on April 1 this year.

This amending protocol provides for further improvement of market access conditions related to trade in goods, revision of the procedures for certification of origin through introduction of a system for declaration of origin by approved exporters and so on.

At the same time, in order to improve convenience, the rules of origin by goods for some products, including automobile components and iron & steel (Annex IV), will be amended corresponding to the actual situation of the industry.



(Source:  http://www.meti.go.jp/english/press/2012/0303_01.html )

Approved exporter system of Japan-Mexico EPA effective April 2012

Approved exporter system in EPA with Mexico, which is self-declaration of goods origin by exporter, will be available to use on April 1st, 2012, according to the material issued by METI.

http://www.meti.go.jp/policy/trade_policy/epa/file/approved_exporter_procedure.pdf

So far, approved exporter system is available only to EPA with Switzerland and Peru.  Japan-Mexico EPA have been implemented since 2005.  By updating the agreement, exporter can make use of this self-declaration system by approved exporter in Japan-Mexico EPA.
There are certain criteria and requirements to be an approved exporter, please see the comprehensive guidance in above URL.