According to the announcement by Japanese METI on April 8th, Vietnam have limitation of issuance of back-to-back C/O (Country of Origin) in AJCEP, which was implemented in Dec 01, 2008.
Same manner as ordinary C/O, Vietnam's Ministry of Industry and Trade （商工省） have authority to issue AJCEP C/O.
In issuing back-to-back C/O by Vietnam, trader need to understand the commodities must be under control of Vietnam customs. For example, the commodities under bonded area or EPA (Export Processing Zone) are OK to issue back-to-back C/O, but if they are after import customs declaration, Vietnam authority will NOT issue back-to-back C/O, according to the announcement.
This could be operational limitation of making use of back-to-back C/O. For Japan, back-to-back C/O system is first time to handle in AJCEP, the operational guidance or information of back-to-back C/O is not enough so far.
(Source: METI web site http://www.meti.go.jp/policy/trade_policy/090408AJCEPannouncement.pdf - Japanese only)
2009年4月9日木曜日
2009年4月8日水曜日
Japan customs valuation criteria update - assist in manufacturing
Japan customs issued notification on March 31, 2009 to update customs valuation criteria, under Finance Customs notice #368, and effective on April 01, 2009.
One of them is criteria change in customs valuation rule traders need to know.
Here is summarize of important one, which is "assist element" in manufacturing.
Customs Tariff Law Basic Notification 4-2-3, Guidance of inspection cost for imported goods
In customs valuation rule, Customs Tariff Law Basic Notification 4-2-3 describe as "the cost for inspection of goods which buyer go to seller's site and inspect the goods in seller's manufacturing process is NOT included in transaction value".
However, if the buyer is involved in "work of manufacturing" other than inspection work, such cost relating to manufacturing must be added into transaction value.
As major manufacturers' supply chain is getting global, it happens quite often that engineers in headquarter visit overseas manufacturing site and provide technical support.
It has been challenging issues how to treat such cost of technical support, whether to include in customs transaction value or not.
Update in basic notification this time provide much clearer criteria in such a case.
Former notification provided the definition of "manufacturing work" to be added to customs transaction value as below four criteria.
One of them is criteria change in customs valuation rule traders need to know.
Here is summarize of important one, which is "assist element" in manufacturing.
Customs Tariff Law Basic Notification 4-2-3, Guidance of inspection cost for imported goods
In customs valuation rule, Customs Tariff Law Basic Notification 4-2-3 describe as "the cost for inspection of goods which buyer go to seller's site and inspect the goods in seller's manufacturing process is NOT included in transaction value".
However, if the buyer is involved in "work of manufacturing" other than inspection work, such cost relating to manufacturing must be added into transaction value.
As major manufacturers' supply chain is getting global, it happens quite often that engineers in headquarter visit overseas manufacturing site and provide technical support.
It has been challenging issues how to treat such cost of technical support, whether to include in customs transaction value or not.
Update in basic notification this time provide much clearer criteria in such a case.
Former notification provided the definition of "manufacturing work" to be added to customs transaction value as below four criteria.
- Work for processing or manufacturing
- Production control
- Operaiton progress control
- Transportation for processing or manufacturing
Apparently, 1 and 4 are understandable as manufacturing work, but 2 and 3 have vague meaning, including management work, and difficult to judge in real operation. Update of notification this time deleted both 2 and 3, then only 1 and 4 remain. This update would give much clearer definition!
In addition, as expenses to be added to customs transaction value for person who engages in manufacturing work, the former notification provided following five elements.
- Voyage expense (including preparation expense)
- Expense during the stay
- Labour cost (including wage and bonus in home country)
- Expense for taking care of absent home during the trip
- Other expenses related to above.
It looks former notification covered all kinds of related expenses broadly! Update this time focus more specifically and prescribe only as below expenses.
- Voyage expense (including preparation expense)
- Expense during the stay
- Wage (expense equivalent to direct labor cost)
In the new notification, it is not required to include bonus or welfare program expense into customs transaction value. This criteria change could be positive news for global manufacturing players who have been worried about definition of customs valuation assist elements.
(Source: http://www.customs.go.jp/kaisei/tsutatsu/H21tsutatsu/H21tsutatsu0368/H21t0368_annex02.pdf - Japanese only)
2009年3月27日金曜日
China in bid to lure overseas experts
Chinese government published a new program to hire 1,000 overseas specialists, the central government will offer each 1 million yuan ($146,000) in subsidies.
If employed, they will also be able to enjoy fundamental social security policies including medical care and pensions.
The official said the general principles of the program were as follows:
An eligible candidate, regardless of his or her nationality, should be aged 55 or younger, should stay in China for six months or longer every year, have an academic title equivalent to professor, or currently work as a senior managing staff with a well-known international company or banking institution.
Candidates also include those who have developed technologies or patents and those who have set up their own businesses abroad and are familiar with international rules in a certain industry.
Please find articles below:
http://www.chinadaily.com.cn/bizchina/2009-03/20/content_7602641.htm
This may be good news from China technology development point of view, however this can be potential issue in export control technology transfer, from a point of view in country which offer human expert. If a person has sensitive technology regulated by export control regulation, the review will be required. Don't forget about it.
If employed, they will also be able to enjoy fundamental social security policies including medical care and pensions.
The official said the general principles of the program were as follows:
An eligible candidate, regardless of his or her nationality, should be aged 55 or younger, should stay in China for six months or longer every year, have an academic title equivalent to professor, or currently work as a senior managing staff with a well-known international company or banking institution.
Candidates also include those who have developed technologies or patents and those who have set up their own businesses abroad and are familiar with international rules in a certain industry.
Please find articles below:
http://www.chinadaily.com.cn/bizchina/2009-03/20/content_7602641.htm
This may be good news from China technology development point of view, however this can be potential issue in export control technology transfer, from a point of view in country which offer human expert. If a person has sensitive technology regulated by export control regulation, the review will be required. Don't forget about it.
2009年3月21日土曜日
Japan, Peru to start EPA negotiation
According to the web site of Ministry of Foreign Affairs of Japan, officials from Japan and Peru will meet in Tokyo in the week of March 23 to discuss a free trade agreement that would eliminate tariffs on most products traded between the two countries.
This meeting is a preparatory meeting to start EPA negotiation between two countries.
The main objective of this meeting is to exchange opinions to recognize mutual status and position in trade.
Bilateral trade between Japan and Peru totaled $2.785 billion in 2007, with Japan's main exports items consisting of automobiles, tires, and steel products, while copper, silver, zinc, and fish flour were the top imports.
Already, Japan has enforced free trade agreements with Singapore, Mexico, Malaysia, Chile, Thailand, Indonesia, Brunei, ASEAN and the Philippines. Completed the signature with Swiss and Vietnam.
This meeting is a preparatory meeting to start EPA negotiation between two countries.
The main objective of this meeting is to exchange opinions to recognize mutual status and position in trade.
Bilateral trade between Japan and Peru totaled $2.785 billion in 2007, with Japan's main exports items consisting of automobiles, tires, and steel products, while copper, silver, zinc, and fish flour were the top imports.
Already, Japan has enforced free trade agreements with Singapore, Mexico, Malaysia, Chile, Thailand, Indonesia, Brunei, ASEAN and the Philippines. Completed the signature with Swiss and Vietnam.
2009年3月16日月曜日
Self-declared C/O Law draft published
As announced in Feb 19, Japan signed EPA with Switzerland. Self-declared Certificate of Origin (C/O) by approved exporter will be introduced first time in Japan with this EPA.
In Japan side, METI take responsibility of process of this C/O by approved exporter.
On March 10, METI announced the law relating to this self-declared C/O.
The main points are as follows.
In Japan side, METI take responsibility of process of this C/O by approved exporter.
On March 10, METI announced the law relating to this self-declared C/O.
The main points are as follows.
- Definition and classification of C/O
Currently, C/O is only issued by Chamber of Commerce in Japan. This existing scheme still remain for majority of EPA and GSP C/O. This type of C/O will be called "Type 1".
The C/O issued by approved exporter will be called "Type 2" C/O. - Authorization by METI
Approved exporter must be authorized by METI before issuing self-declared C/O. The detailed process of this authorization will be announced later. - Registration Tax
In order to have this authorization by METI, the exporter need to pay registration tax, and it costs JPY90,000 (approx. US$900). - Renewal of approved exporter authorization
This approval need to be renewed by designated period. The period will be decided later by Ministerial Order, and the renewal fee will be needed. The amount of the fee will be also decided by METI later on.
(Source: METI web site http://www.meti.go.jp/press/20090310003/20090310003.html )
2009年3月5日木曜日
Horkos employees arrested FEFTL violation
On March 4, 2009, METI accused Machine Tool manufacture, Horkos, of violation of FEFTL, as they exported high precision machine tool without export license to South Korea and China. This incident was reported on July 31 last year, and have been investigated by police. It was reported yesterday, 4 employees were arrested by violation of FEFTL. All of these employees are not top management, but manager or assistant manager level who were involved in false classification of their machine tool. (Overseas sales manager, manufactuirng manager, quality control manager etc.) They intentionally declared their machine tool's specification "lower" than it is, because the license application to METI is very complicated, stressful, troublesome and wanted to minimize the lead time of business. The actual technical specification was not disclosed to METI or Customs, but they internally kept "real specification" in the company and advised to clients as sales point!
According to METI website, their machine is classified as category 2-(12) of Export Trade Control Order appendix 1. Its description is "Nuclear Weapons, Numerically controlled machine tools". Or, it is equivalent to US ECCN 2B001 and 2B201. The export of this item require export license by METI regardless of its destination, to all countries.
The penalty of export violation will be much more severe by amendment of FEFTL this year.
Apparently, this violation incident is one of the reason METI impose tighten export control.
(Source: METI web site http://www.meti.go.jp/policy/anpo/kanri/topics/kokuhatsu/main.html)
(Horkos web site: http://www.horkos.co.jp/ )
According to METI website, their machine is classified as category 2-(12) of Export Trade Control Order appendix 1. Its description is "Nuclear Weapons, Numerically controlled machine tools". Or, it is equivalent to US ECCN 2B001 and 2B201. The export of this item require export license by METI regardless of its destination, to all countries.
The penalty of export violation will be much more severe by amendment of FEFTL this year.
Apparently, this violation incident is one of the reason METI impose tighten export control.
(Source: METI web site http://www.meti.go.jp/policy/anpo/kanri/topics/kokuhatsu/main.html)
(Horkos web site: http://www.horkos.co.jp/ )
2009年3月2日月曜日
Japan FEFTL amendment
On February 27, 2009, the government of Japan published a notice that within the next 12 months it will implement specific amendments of the Japanese Foreign Exchange and Foreign Trade Law (“FEFTL”) to impose more strict export controls on technology transfers and increases penalties for export control violations. The changes will not take effect until implementing regulations are issued, which is expected to occur later this year. The amendments are as follows:
· Technology Transfer: Current export controls on technology transfers apply only to transfers from a Japanese resident to a non-resident. Under the new regulations, technology transfers of items considered a potential threat to national security will be subject to a license requirement whenever moving across the border, even if at that time they are in the possession of a Japanese resident. Taking such technology abroad and sending it to another country via the Internet will both be subject to licensing requirements. The Ministry of Economy, Trade and Industry (“METI”) indicates that this amendment is intended to conform the Japanese rules to the prevailing international standards followed in the United States and the EU.
· Increased Penalties: Current law provides for imprisonment of up to 5 years and a fine of up to 2 million yen for export control violations. The amendment increases these penalties to 10 years and 10 million yen, or five times the value of the items unlawfully exported, whichever is greater. The level of penalty imposed will depend upon the destination country, whether the export violation involved goods, software or technology controlled for WMD reasons and whether the items are considered sensitive for other reasons.
· Export Compliance Programs: The new regulations will require each exporter who deals in sensitive items to have thorough export compliance programs. Failure to do so will subject the exporter to a warning, an order requiring specific compliance steps or, in severe cases, monetary penalties.
The extent of the new regulations’ impact will clearly depend upon the how the implementing regulations define the key concepts of “transfer” and “sensitive” items.
Full details of the amendment of the FEFTL is available in following METI web site, but only in Japanese.
http://www.meti.go.jp/press/20090227002/20090227002.html
· Technology Transfer: Current export controls on technology transfers apply only to transfers from a Japanese resident to a non-resident. Under the new regulations, technology transfers of items considered a potential threat to national security will be subject to a license requirement whenever moving across the border, even if at that time they are in the possession of a Japanese resident. Taking such technology abroad and sending it to another country via the Internet will both be subject to licensing requirements. The Ministry of Economy, Trade and Industry (“METI”) indicates that this amendment is intended to conform the Japanese rules to the prevailing international standards followed in the United States and the EU.
· Increased Penalties: Current law provides for imprisonment of up to 5 years and a fine of up to 2 million yen for export control violations. The amendment increases these penalties to 10 years and 10 million yen, or five times the value of the items unlawfully exported, whichever is greater. The level of penalty imposed will depend upon the destination country, whether the export violation involved goods, software or technology controlled for WMD reasons and whether the items are considered sensitive for other reasons.
· Export Compliance Programs: The new regulations will require each exporter who deals in sensitive items to have thorough export compliance programs. Failure to do so will subject the exporter to a warning, an order requiring specific compliance steps or, in severe cases, monetary penalties.
The extent of the new regulations’ impact will clearly depend upon the how the implementing regulations define the key concepts of “transfer” and “sensitive” items.
Full details of the amendment of the FEFTL is available in following METI web site, but only in Japanese.
http://www.meti.go.jp/press/20090227002/20090227002.html
登録:
投稿 (Atom)
