According to The Nikkei news paper on July 26, 2010, the Ministry of Finance (“MOF”) is considering to reduce the ceiling amount of GSP preferential tariff of one country. The ceiling for each product group is open for utilization by all preference-receiving countries equally, however there is maximum ceiling percentage per one country as 20% of total ceiling amount per year in order to avoid inequality among GSP countries. MOF try to reduce this ceiling percentage per one country to 10 – 15%. In these years, Chinese origin items fulfill this ceiling percentage for most of items, therefore MOF aim to equalize the GSP preferential opportunity to many other developing countries.
In Japan, GSP preferential tariff is applicable to approx. 3,500 items which are originated in 154 developing countries or regions. Among GSP eligible items, approx. 1,180 items can be allowed until they exceed the ceilings of either limited amount or quantity.
For example, Chapter 76 (Aluminum and articles thereof) have GSP preferential tariff as 0%, while MFN tariff for Chapter 76 is from 2% - 7.6% depending on items. The annual ceiling amount of Aluminum item is JPY11.7 billions for fiscal year April 01, 2010 to March 31, 2011. As for GSP utilization of Aluminum item from China, it reached the maximum amount per country or 20% of total ceiling amount in May 2010, therefore MOF suspended the GSP preferential for Aluminum item originated in China on May 18, 2010. After this suspension date until the end of the fiscal year, Chinese origin Aluminum items are to be imposed in MFN rate. Other same examples of suspension of GSP privilege to Chinese origin items are; Fireworks (HS 36.04) on May 18, Article of leather (HS 43.02 - 43.03) on May 18, and certain carpets and other textile floor coverings (HS 57.02) on June 16, and garments and clothing accessories of cotton (HS 62.09) on May 18 etc. Most of GSP ceiling amount of textile items in apparel industry are used up by Chinese origin items in early stage of fiscal year.
The background of this amendment plan is rapid increase of the import from China. The import amount from China to Japan exceed JPY10 trillions, this makes China as top trade partner country for Japan. Chinese origin products are generally accepted as competitive in international market, questions come arise why Chinese origin products occupy the most of GSP preferential treatment which is a trade measure for contributing to developing countries.
MOF plan to implement this GSP ceiling limitation amendment starting from next fiscal year, April 2011. This will correct the disproportion among GSP eligible countries, and the developing countries other than China will be able to enjoy more GSP preferential opportunity, but the cost of import from China is expected to increase due to less GSP utilization allowance to China. Especially for small medium companies who import apparel items and daily necessities will be negatively affected because most of such items are imported from Chinese manufacturing sites and supply source is not diversified enough to other countries or regions.
Traders who import from China and utilize GSP preferential tariff are encouraged to carefully plan the sourcing strategy for next fiscal year.
2010年7月30日金曜日
2010年7月20日火曜日
Singapore Summit on Export Controls Compliance
As this blog readers are fully aware, multinational companies who have international operation cannot disregard the importance of export control in Asia region.
In October 20 & 21, 2010, American Conference Institute ("ACI") will have Singapore Summit on Export Controls Compliance in Marriott Hotel in Singapore.
This seminar is really useful for executives and managers who are in charge of trade compliance in global companies.
Details are in this URL: http://www.americanconference.com/Singapore.htm
I will be a one of the speakers on Oct 21 afternoon session, "Japan Export Controls: Preventing Product Classification Pitfalls", together with Mr. Riko in Mitsubishi Corp, General Manager - Security Trade Control Office. It would be really exciting opportunity for me.
Sub-topics of our presentation are as follows.
• How to verify whether your products are controlled under basic Japan controls.
• Discussing the uniqueness of classification numbering scheme.
• Preventing common mistakes in language translation.
• Overcoming operational challenges in “parameter sheet”for enough evidence of classification.
As a speaker, my colleagues and friends are entitled to $200 off the price. Before Aug 17 (early bird expiration date), you will have $500 off compared to the standard price.
My blog reader can be regarded as my friend and enjoy registration fee discount. If you want to have discount, please contact to Bryan Cave International Trade via Useful Link in the right corner of this blog.
In October 20 & 21, 2010, American Conference Institute ("ACI") will have Singapore Summit on Export Controls Compliance in Marriott Hotel in Singapore.
This seminar is really useful for executives and managers who are in charge of trade compliance in global companies.
Details are in this URL: http://www.americanconference.com/Singapore.htm
I will be a one of the speakers on Oct 21 afternoon session, "Japan Export Controls: Preventing Product Classification Pitfalls", together with Mr. Riko in Mitsubishi Corp, General Manager - Security Trade Control Office. It would be really exciting opportunity for me.
Sub-topics of our presentation are as follows.
• How to verify whether your products are controlled under basic Japan controls.
• Discussing the uniqueness of classification numbering scheme.
• Preventing common mistakes in language translation.
• Overcoming operational challenges in “parameter sheet”for enough evidence of classification.
As a speaker, my colleagues and friends are entitled to $200 off the price. Before Aug 17 (early bird expiration date), you will have $500 off compared to the standard price.
My blog reader can be regarded as my friend and enjoy registration fee discount. If you want to have discount, please contact to Bryan Cave International Trade via Useful Link in the right corner of this blog.
2010年7月1日木曜日
Progress Made on Trans-Pacific Trade Deal
The second round of negotiations for a comprehensive Trans-Pacific Partnership Agreement between the U.S. and seven other countries concluded in California in June. Progress on the agreement is moving forward with trade officials hopeful that the text of all chapters of the agreement will be tabled in the third negotiation round set for Brunei in October.
The partnership would bring the U.S. together with four countries that already have free trade deals with the U.S. - Singapore, Chile, Australia and Peru - as well as New Zealand, Brunei, and Vietnam. Canada and Malaysia have also expressed interest in joining the pact.
The second round aimed to settle a key issue of how the proposed Trans-Pacific Partnership would overlap with existing free trade deals between its members. Trade officials reportedly stated there was also consensus on other issues, such as exploring additional measures related to job creation and the environment. Yet, sorting out details related to market opening timelines and other issues will take more time.
(Sources: Office of the U.S. Trade Representative; The Wall Street Journal )
The partnership would bring the U.S. together with four countries that already have free trade deals with the U.S. - Singapore, Chile, Australia and Peru - as well as New Zealand, Brunei, and Vietnam. Canada and Malaysia have also expressed interest in joining the pact.
The second round aimed to settle a key issue of how the proposed Trans-Pacific Partnership would overlap with existing free trade deals between its members. Trade officials reportedly stated there was also consensus on other issues, such as exploring additional measures related to job creation and the environment. Yet, sorting out details related to market opening timelines and other issues will take more time.
(Sources: Office of the U.S. Trade Representative; The Wall Street Journal )
2010年6月28日月曜日
Decontrol of “Ancillary Cryptography” Items
Perhaps many of you know US EAR implements the decontrol of Ancillary Cryptography items on June 25 by adding Note 4 (following the mass market Note 3) to Category 5, part 2, of the Commerce Control List. http://www.bis.doc.gov/news/2010/encryption_rule_summary.pdf
Items incorporating or using “cryptography” will no longer be classified under Category 5, part 2 if their primary function is not communications, networking, computing or “information security” and the cryptographic functionality is limited to supporting the primary function.
Examples of such items include robotics, household appliances, fire alarm systems, inventory management software, CAD software, and transportation systems.
Such items may be self-classified under another category of the Commerce Control List, or as EAR99.
My interest is then, what other countries implement (or schedule of implementation) this Ancillary Cryptography exemption Wassenaar Note 4 into their own domestic export control regulation.
Already Implemented country: US (June 25, 2010), Japan (April 01, 2010), and Hong Kong (June 14, 2010)
Not yet implementing (as of June 27, 2010): EU, Singapore, Korea, and Taiwan. etc.
Different approach: Canada will not incorporate provisions into law until end of 2010 or early 2011. Instead, have Broadbase permit implementation.
http://www.mccarthy.ca/article_detail.aspx?id=5028
Please bear in mind, even if the item is totally same, the classification of cryptography item may be different from country by country, and therefore need export license (or need to seek license exception).
Items incorporating or using “cryptography” will no longer be classified under Category 5, part 2 if their primary function is not communications, networking, computing or “information security” and the cryptographic functionality is limited to supporting the primary function.
Examples of such items include robotics, household appliances, fire alarm systems, inventory management software, CAD software, and transportation systems.
Such items may be self-classified under another category of the Commerce Control List, or as EAR99.
My interest is then, what other countries implement (or schedule of implementation) this Ancillary Cryptography exemption Wassenaar Note 4 into their own domestic export control regulation.
Already Implemented country: US (June 25, 2010), Japan (April 01, 2010), and Hong Kong (June 14, 2010)
Not yet implementing (as of June 27, 2010): EU, Singapore, Korea, and Taiwan. etc.
Different approach: Canada will not incorporate provisions into law until end of 2010 or early 2011. Instead, have Broadbase permit implementation.
http://www.mccarthy.ca/article_detail.aspx?id=5028
Please bear in mind, even if the item is totally same, the classification of cryptography item may be different from country by country, and therefore need export license (or need to seek license exception).
Japan - Canada agreed AEO Mutual Recognition
On June 25, 2010, Ministry of Finance ("MOF") in Japan announced that Japan and Canada signed the Decision establishing mutual recognition of AEO between the Canada and Japan.
This mutual recognition offers enhanced trade facilitation opportunities provided by customs to certified AEO traders in both sides who have invested in securing their supply chains.
Following the mutual recognition with EU announced on June 24, Canada is 4th country Japan signed AEO mutual recognition, New Zealand, US, and EU.
The contents of the agreement is almost similar to mutual recognition with EU.
In Canada, AEO system is called as Partners in Protection ("PIP")
(Resource: http://www.mof.go.jp/jouhou/kanzei/ka220625.htm )
This mutual recognition offers enhanced trade facilitation opportunities provided by customs to certified AEO traders in both sides who have invested in securing their supply chains.
Following the mutual recognition with EU announced on June 24, Canada is 4th country Japan signed AEO mutual recognition, New Zealand, US, and EU.
The contents of the agreement is almost similar to mutual recognition with EU.
In Canada, AEO system is called as Partners in Protection ("PIP")
(Resource: http://www.mof.go.jp/jouhou/kanzei/ka220625.htm )
2010年6月25日金曜日
Japan - EU agreed AEO Mutual Recognition
On June 24, 2010, Ministry of Finance ("MOF") in Japan announced that Japan and EU signed the Decision establishing mutual recognition of AEO between the EU and Japan.
This mutual recognition offers enhanced trade facilitation opportunities provided by customs to certified AEO traders in both sides who have invested in securing their supply chains.
This mutual recognition with EU is 3rd one for Japan, following with New Zealand (signed on May 2008) and with U.S. (signed on June 2009). EU have had mutual recognition with Switzerland and Norway only. Japan is their first AEO mutual recognition country other than Europe area.
The main contents of this agreement is as follows.
This mutual recognition offers enhanced trade facilitation opportunities provided by customs to certified AEO traders in both sides who have invested in securing their supply chains.
This mutual recognition with EU is 3rd one for Japan, following with New Zealand (signed on May 2008) and with U.S. (signed on June 2009). EU have had mutual recognition with Switzerland and Norway only. Japan is their first AEO mutual recognition country other than Europe area.
The main contents of this agreement is as follows.
- Both Japan and EU customs authority will reflect the risk analysis of the status of AEO traders in customs examination or inspection when the goods are exported or imported by AEO traders in other side.
- Both parties will respect the status of AEO traders in other side in application of variety of security operation.
- Both parties will make effort to develop common system how priorities cargoes are handled in emergency.
- Both parties will continue discussion of further benefit of mutual recognition.
(Resource Japan : http://www.mof.go.jp/jouhou/kanzei/ka220624.htm )
(Resource EU : http://ec.europa.eu/taxation_customs/resources/documents/common/legislation/proposals/customs/com(2010)055fin_en.pdf )
In addition, according to Nikkei Newspaper on June 25, AEO mutual recognition with Canada is also in progress. The good news with Canada is expected to be announced within this month.
2010年6月22日火曜日
Japan-Mongolia start EPA study
The Governments of Japan and Mongolia have agreed on starting joint public-private research on an economic partnership agreement (EPA).
The first meeting will be held over two days from June 24 (Thu) to June 25 (Fri) in Ulan-Bator, to be attended by experts from industry, government, and academia of both countries.
During the first meeting, the experts will exchange views on topics including bilateral economic relations and items to be included in the possible EPA.
Mongolia don't have any FTA with other countries, this is first FTA trial for them.
Mongolia's economy is centered on agriculture and mining. Mongolia has rich mineral resources, and copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. For Japan, these natural resource is very attractive trade interest. Among export amount from Mongolia, the mining industry consists of 80% approximately.
The first meeting will be held over two days from June 24 (Thu) to June 25 (Fri) in Ulan-Bator, to be attended by experts from industry, government, and academia of both countries.
During the first meeting, the experts will exchange views on topics including bilateral economic relations and items to be included in the possible EPA.
Mongolia don't have any FTA with other countries, this is first FTA trial for them.
Mongolia's economy is centered on agriculture and mining. Mongolia has rich mineral resources, and copper, coal, molybdenum, tin, tungsten, and gold account for a large part of industrial production. For Japan, these natural resource is very attractive trade interest. Among export amount from Mongolia, the mining industry consists of 80% approximately.
登録:
投稿 (Atom)
