I believe many of trade practitioner face language barrier in looking into Japanese trade related laws and regulations. Yes, in reality, English translation is not always available and difficult to find it.
For those who need English translation of Japanese law, here's some useful information.
1) Government Web site http://www.cas.go.jp/jp/seisaku/hourei/data2.html
This site is very useful. Although the translation is unofficial one, it is permitted to cite, reproduce or reprint as needed. This site doesn't cover all Japanese law, e.g. 薬事法Pharmaceutical Affairs Law is not available, but they continue to add new translation regularly.
Please be noted, the export control related laws are available, but not reflecting the latest one.
For example, FEFTL (Foreign Exchange and Foreign Trade Act) translation is in 2005, and Export Trade Control Order is in 2006. Both of them were slightly modified in 2007 and 2008.
2) Book published by Japan Tariff Association http://www.kanzei.or.jp/book/publish03.htm
Customs related law is not available in above government web site.
Instead, Japan Tariff Association sell English translation book of Customs related law.
4-88895-255-8 英文関税法規集 B5/546 Price: JPY18,900.-
The contents:
Customs Law http://www.kanzei.or.jp/book/pdf/tariff_law_english.pdf
3) Eibun-Horei-Sha, Inc. http://www.ehs.or.jp/index_en.html
They sell English translation of law books for many fields. However in trade related law, the content is too old for some books. For example, Export Trade Control Order with Concomitant Notification is in 1991 edition! They sell Export Inspection Law, 1990 edition but this law was abolished in 1997.
2008年10月30日木曜日
2008年10月29日水曜日
Validated End-User Program in China
Validated End-User Program is well known among export control expert.
But according to GAO ("Government Accountability Office") report, they recognize this program doesn't work as intended and advise to suspend.
What is Validated End-User (VEU) Program?
The program allows U.S. companies to ship eligible products to VEU companies without an individual validated license. This program was first made available to China as part of a larger “China rule” that included expanded controls related to military end-use. The U.S. government has since extended the VEU program to India and may consider other countries in the future. Five companies have been approved for VEU status so far. This program is still in an early phase and the U.S. and Chinese governments are discussing issues and implementation.
Now, what companies are approved as VEU?
The five approved VEU companies are: Applied Materials China; Boeing Hexcel AVIC I Joint Venture; National Semiconductor Corp; Semiconductor Manufacturing International Corp; and Shanghai Hua Hong NEC Corp. They are authorized to import certain controlled items without individual export licenses.
What is the problem in the program GAO point out?
The Government Accountability Office has called on the Department of Commerce to suspend a program designed to facilitate high technology exports to China. The GAO expressed concern that the DOC is unable to ensure that goods shipped under the validated end-user program, especially semiconductor equipment and materials, are being used as intended.
The VEU program allows select “trusted” Chinese companies to receive controlled items without a DOC export license. Instead of requiring a post-shipment verification check to ensure that the equipment is being used in accordance with the terms of the authorization, VEUs must agree to periodic records reviews and discretionary on-site reviews by U.S. government personnel. This program covers a wide range of items, may be used by foreign re-exporters and does not have an expiration date.
The GAO states that the introduction of the VEU program has yet to produce the anticipated advantages and that challenges with program implementation may hinder the DOC’s ability to ensure that items exported to VEUs are being used as intended. For example, although negotiations are ongoing, the department has not reached a VEU specific agreement with the Chinese government for conducting on-site reviews of VEUs, a mechanism cited by Commerce as critical for ensuring program compliance. Instead, as a stopgap measure, the DOC is attempting to conduct on-site reviews under a 2004 end-use visit understanding with China. The department also continues to lack specific procedures for selecting and conducting on-site reviews more than a year after the program was introduced.
The GAO therefore recommends that the DOC suspend the VEU program with respect to China until it (a) negotiates a VEU-specific agreement with China or the EUVU is amended to include the VEU program and (b) develops operating procedures for selecting and conducting on-site reviews that are applicable to all VEUs. The DOC disagreed with this recommendation, stating that the EUVU provides a framework for all inspections related to export controls in China and that procedures for conducting end-use checks exist and will be used for on-site reviews as applicable. The GAO noted, however, that the EUVU requirement to obtain end-user statements for shipments imposes an additional burden on VEUs and runs counter to the trade facilitating objectives of the program. The GAO also pointed out that end-use checks focus on ensuring that an item is being used for the purposes stated on the license, whereas on-site reviews are more comprehensive.
(Source: World Trade/Interactive - 10/28/08)
But according to GAO ("Government Accountability Office") report, they recognize this program doesn't work as intended and advise to suspend.
What is Validated End-User (VEU) Program?
The program allows U.S. companies to ship eligible products to VEU companies without an individual validated license. This program was first made available to China as part of a larger “China rule” that included expanded controls related to military end-use. The U.S. government has since extended the VEU program to India and may consider other countries in the future. Five companies have been approved for VEU status so far. This program is still in an early phase and the U.S. and Chinese governments are discussing issues and implementation.
Now, what companies are approved as VEU?
The five approved VEU companies are: Applied Materials China; Boeing Hexcel AVIC I Joint Venture; National Semiconductor Corp; Semiconductor Manufacturing International Corp; and Shanghai Hua Hong NEC Corp. They are authorized to import certain controlled items without individual export licenses.
What is the problem in the program GAO point out?
The Government Accountability Office has called on the Department of Commerce to suspend a program designed to facilitate high technology exports to China. The GAO expressed concern that the DOC is unable to ensure that goods shipped under the validated end-user program, especially semiconductor equipment and materials, are being used as intended.
The VEU program allows select “trusted” Chinese companies to receive controlled items without a DOC export license. Instead of requiring a post-shipment verification check to ensure that the equipment is being used in accordance with the terms of the authorization, VEUs must agree to periodic records reviews and discretionary on-site reviews by U.S. government personnel. This program covers a wide range of items, may be used by foreign re-exporters and does not have an expiration date.
The GAO states that the introduction of the VEU program has yet to produce the anticipated advantages and that challenges with program implementation may hinder the DOC’s ability to ensure that items exported to VEUs are being used as intended. For example, although negotiations are ongoing, the department has not reached a VEU specific agreement with the Chinese government for conducting on-site reviews of VEUs, a mechanism cited by Commerce as critical for ensuring program compliance. Instead, as a stopgap measure, the DOC is attempting to conduct on-site reviews under a 2004 end-use visit understanding with China. The department also continues to lack specific procedures for selecting and conducting on-site reviews more than a year after the program was introduced.
The GAO therefore recommends that the DOC suspend the VEU program with respect to China until it (a) negotiates a VEU-specific agreement with China or the EUVU is amended to include the VEU program and (b) develops operating procedures for selecting and conducting on-site reviews that are applicable to all VEUs. The DOC disagreed with this recommendation, stating that the EUVU provides a framework for all inspections related to export controls in China and that procedures for conducting end-use checks exist and will be used for on-site reviews as applicable. The GAO noted, however, that the EUVU requirement to obtain end-user statements for shipments imposes an additional burden on VEUs and runs counter to the trade facilitating objectives of the program. The GAO also pointed out that end-use checks focus on ensuring that an item is being used for the purposes stated on the license, whereas on-site reviews are more comprehensive.
(Source: World Trade/Interactive - 10/28/08)
2008年10月22日水曜日
ASEAN-Japan EPA will be implemented on Dec 01, 2008
As reported in this blog on June 2 this year, AJCEP (Agreement on Comprehensive Economic Partnership among Japan and Member States of the Association of Southeast Asian Nations) was signed in April this year with 11 countries in ASEAN.
Now it was announced by Japanese government that this AJCEP will be effective from December 01, 2008. After this date, AJCEP will be implemented with the countries who made notification. With regards to the ASEAN countries which will make the notification later, the Agreement will enter into force subsequently in accordance with the stipulations of the Agreement.
(Source: Ministry of Foreign Affairs of Japan http://www.mofa.go.jp/announce/announce/2008/10/1184016_1060.html)
Now it was announced by Japanese government that this AJCEP will be effective from December 01, 2008. After this date, AJCEP will be implemented with the countries who made notification. With regards to the ASEAN countries which will make the notification later, the Agreement will enter into force subsequently in accordance with the stipulations of the Agreement.
(Source: Ministry of Foreign Affairs of Japan http://www.mofa.go.jp/announce/announce/2008/10/1184016_1060.html)
2008年10月18日土曜日
Export Violation by Japanese Machine Tool Company Sugino Machine Ltd.
According to the announcement by METI on Oct. 17, a medium size Japanese machinery tool manufacturer, Sugino Machine Ltd. (number of employee 719) illegally exported their machine, which had needed export license by METI due to its high technical specification. The violation had been from 2000 to 2006, and exported hundreds of machines to Germany, China, Thailand, USA etc. It is not reported their machines were found in concerned countries such as North Korea.
Their machines have high specification which is required to get export license in exporting to basically all countries.
According to Nikkei newspaper, they neglected this license application by intentionally lowered technical specification because they wanted to make the delivery earlier by skipping license application to METI.
According to Sugino's company website, this violation was found in their internal investigation in December 2007 and voluntary disclosed this violation to METI in March 2008.
METI gave penalty to Sugino, however it is warning only, and required them to improve their internal compliance. Based on Foreign Exchange and Foreign Trade Law ("FEFTL"), it would be possible for METI to give penalty of export prohibition less than 3 years. This time, METI just gave warning rather than giving severe penalty because :
- Their products were not exported to Iran or North Korea and not used for development of weapons for mass destruction.
- The end-users were not denied party or concerned parties which may threat the national security.
- They voluntarily reported their violation to METI and committed to improve their export compliance operation.
Above facts are important factors to decide the magnitude of penalty by METI.
Companies who export such high technical specification must understand their importance of keeping this export regulation.
(Source: METI web site http://www.meti.go.jp/press/20081017006/20081017006.pdf )
(Source: Sugino Machine Ltd http://www.sugino.com/sitemap/1017.html)
(Source: Nikkei Newspaper http://www.nikkei.co.jp/news/shakai/20081018AT1G1703217102008.html )
Their machines have high specification which is required to get export license in exporting to basically all countries.
According to Nikkei newspaper, they neglected this license application by intentionally lowered technical specification because they wanted to make the delivery earlier by skipping license application to METI.
According to Sugino's company website, this violation was found in their internal investigation in December 2007 and voluntary disclosed this violation to METI in March 2008.
METI gave penalty to Sugino, however it is warning only, and required them to improve their internal compliance. Based on Foreign Exchange and Foreign Trade Law ("FEFTL"), it would be possible for METI to give penalty of export prohibition less than 3 years. This time, METI just gave warning rather than giving severe penalty because :
- Their products were not exported to Iran or North Korea and not used for development of weapons for mass destruction.
- The end-users were not denied party or concerned parties which may threat the national security.
- They voluntarily reported their violation to METI and committed to improve their export compliance operation.
Above facts are important factors to decide the magnitude of penalty by METI.
Companies who export such high technical specification must understand their importance of keeping this export regulation.
(Source: METI web site http://www.meti.go.jp/press/20081017006/20081017006.pdf )
(Source: Sugino Machine Ltd http://www.sugino.com/sitemap/1017.html)
(Source: Nikkei Newspaper http://www.nikkei.co.jp/news/shakai/20081018AT1G1703217102008.html )
2008年10月17日金曜日
MOF start re-investigation of CVD to Hynix Korea DRAM
As reported in this blog on end of August, Japan lowered CVD (Counter Vailing Duty) rate from 27.2% to 9.1% based on the advice from WTO. The lowered rate was effective on Sept. 01.
On Sept 29, Hynix Korea requested to Japanese MOF to abolish CVD completely because the subsidy in question was no longer beneficial after 2003 which is the period for the investigation.
Japanese MOF and METI started re-investigation of the circumstance Hynix pointed out from October 15.
(Source: http://www.mof.go.jp/jouhou/kanzei/ka201015.htm )
On Sept 29, Hynix Korea requested to Japanese MOF to abolish CVD completely because the subsidy in question was no longer beneficial after 2003 which is the period for the investigation.
Japanese MOF and METI started re-investigation of the circumstance Hynix pointed out from October 15.
(Source: http://www.mof.go.jp/jouhou/kanzei/ka201015.htm )
2008年10月10日金曜日
Philippines Approves FTA with Japan
The Philippine government has voted to approve the Japan-Philippines Economic Partnership Agreement (JPEPA) -- the first bilateral free trade pact for the Philippines.
Under the JPEPA, tariffs on 95 percent of Philippine exports to Japan will be eliminated while import duties on industrial goods such as electronics and cars will be phased out within a ten-year period.
Supporters of the JPEPA argued that without such a deal, the Philippines would lose out to neighbors like Thailand and Indonesia, which already have their own free trade deals with Japan.
In the meantime, Japan is close to concluding a separate free trade agreement with the Gulf Cooperation Council (GCC). The GCC economic bloc is comprised of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.
(Source: UPS Trade News [Trade_News@ups-scs.service.com] on Oct. 09, 2008)
Under the JPEPA, tariffs on 95 percent of Philippine exports to Japan will be eliminated while import duties on industrial goods such as electronics and cars will be phased out within a ten-year period.
Supporters of the JPEPA argued that without such a deal, the Philippines would lose out to neighbors like Thailand and Indonesia, which already have their own free trade deals with Japan.
In the meantime, Japan is close to concluding a separate free trade agreement with the Gulf Cooperation Council (GCC). The GCC economic bloc is comprised of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.
(Source: UPS Trade News [Trade_News@ups-scs.service.com] on Oct. 09, 2008)
2008年10月9日木曜日
New Zealand-China FTA Takes Effect
The New Zealand-China Free Trade Agreement (FTA), which became effective on October 1, will phase out tariffs on 96 percent of New Zealand's exports to China and liberalize trade in goods and service between the two countries.
New Zealand's Ministry of Foreign Affairs and Trade also stated that the pact would give additional protection to New Zealand investors in China, while at the same time offering assistance to build existing business relationships with Chinese companies.
China currently ranks as New Zealand's third-largest trading partner.
(Source: UPS Trade News [Trade_News@ups-scs.service.com] Oct. 08, 2008)
New Zealand's Ministry of Foreign Affairs and Trade also stated that the pact would give additional protection to New Zealand investors in China, while at the same time offering assistance to build existing business relationships with Chinese companies.
China currently ranks as New Zealand's third-largest trading partner.
(Source: UPS Trade News [Trade_News@ups-scs.service.com] Oct. 08, 2008)
2008年10月8日水曜日
Commerce Proposes Intra-Company Export Licensing Exception "ICT"
The U.S. Commerce Department has published for comment a proposed export license exception (“ICT”) that would authorize approved companies and their wholly owned or controlled affiliates to engage in transfers among themselves of many items that would otherwise require individual export licenses, including licenses to make so-called deemed exports to foreign nationals. Comments on the proposed rule are due by November 17th.
The parent company must be incorporated in a country listed in a new supplement to the regulations.To gain approval for use of the exception, the company would have to apply to the Departmentand obtain express approval.
Among the things the application must contain is an ICT internalcontrol plan for the Department to review. What is perhaps most interesting about the proposal is what the Department says the internal control plan must contain because it suggests what Commerce would look to in deciding in other circumstances, such as an enforcement action or a voluntary disclosure situation, whether a company has an effective export compliance program.
The more details are available in following bulletin in IRB# 405 dated October 7, 2008.
http://www.bryancave.com/bulletins/
The parent company must be incorporated in a country listed in a new supplement to the regulations.To gain approval for use of the exception, the company would have to apply to the Departmentand obtain express approval.
Among the things the application must contain is an ICT internalcontrol plan for the Department to review. What is perhaps most interesting about the proposal is what the Department says the internal control plan must contain because it suggests what Commerce would look to in deciding in other circumstances, such as an enforcement action or a voluntary disclosure situation, whether a company has an effective export compliance program.
The more details are available in following bulletin in IRB# 405 dated October 7, 2008.
http://www.bryancave.com/bulletins/
2008年10月3日金曜日
CBP Extends Grace Period for Automated Export System
An official with U.S. Customs and Border Protection (CBP) says the agency has extended the grace period before enforcement of rules requiring electronic filing of export documents.
Exporters were to begin using the Automated Export System (AES) on October 1, however CBP says it must first issue guidelines to field offices, which should occur within the next few weeks.
Fines for exporters filing paper forms instead of using AES range from $1,100 to $10,000 per violation.
(Source: UPS Trade News for October 2, 2008)
Exporters were to begin using the Automated Export System (AES) on October 1, however CBP says it must first issue guidelines to field offices, which should occur within the next few weeks.
Fines for exporters filing paper forms instead of using AES range from $1,100 to $10,000 per violation.
(Source: UPS Trade News for October 2, 2008)
2008年10月2日木曜日
Approved Exporter in Japan-Swiss EPA
Japan and Swiss reached agreement in principle in EPA according to Japanese government adjournment on Sept 29. The 99% of trade amount for both countries will be zero customs duty in 10 years after its implementation. It is good thing.
As a first EPA for Japan to European countries, there is one unique and new provision in it.
It is proof of origin when traders claim preferential tariff. A new framework will be provided for an origin declaration by an approved exporter. Although for Japan this framework is a new system, it is common system in European communities. An approved exporter is an exporter who has met certain conditions imposed by the customs authorities and who is allowed to make out invoice declarations. Declaration on certain commercial documents such as invoice can replace the specific country of origin. This is subject to prior authorization by the customs authorities granted to approved exporters. Just as the customs authorities can grant that status, they can also withdraw it if the exporter misuses or abuses the authorities. As for relevant authorities in each country, Swiss customs will take care in Swiss side and Ministry of Economy, Trade and Industry (“METI”) will take care of Japan side.
(Source: Page 11 in http://www.mof.go.jp/singikai/kanzegaita/siryou/kana200930/kana200930b.pdf)
(Reference for Approved Exporter in EU: http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/customs_unions/article_774_en.htm#approved_exporter)
As a first EPA for Japan to European countries, there is one unique and new provision in it.
It is proof of origin when traders claim preferential tariff. A new framework will be provided for an origin declaration by an approved exporter. Although for Japan this framework is a new system, it is common system in European communities. An approved exporter is an exporter who has met certain conditions imposed by the customs authorities and who is allowed to make out invoice declarations. Declaration on certain commercial documents such as invoice can replace the specific country of origin. This is subject to prior authorization by the customs authorities granted to approved exporters. Just as the customs authorities can grant that status, they can also withdraw it if the exporter misuses or abuses the authorities. As for relevant authorities in each country, Swiss customs will take care in Swiss side and Ministry of Economy, Trade and Industry (“METI”) will take care of Japan side.
(Source: Page 11 in http://www.mof.go.jp/singikai/kanzegaita/siryou/kana200930/kana200930b.pdf)
(Reference for Approved Exporter in EU: http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/customs_unions/article_774_en.htm#approved_exporter)
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