On May 20th, BIS published amendments to the CCL corresponding to the changes multilaterally agreed by the Wassenaar Arrangement December 2010.
We can already see the amended CCL in web site.
As posted in blog, Japan also updated the control items list to accomodate Wassenaar 2010 list and will implement it on July 02, 2011. This quick change of the list both US and Japan will positively affect both US and Japan exporters. Operational concern for traders are the disparities with other EU list following countries such as Singapore, Malaysia, and Taiwan.
2011年5月19日木曜日
AEO mutual recognition between Japan - Korea
According to Nikkei Newspaper on May 19, 2011, government of Japan and Korea is likely to announce mutual recognition of AEO shortly. At this point of time, I find no official announcement on Japan Customs web site, but perhaps will be available soon.
As for AEO operators, 370 companies are registered in Japan such as Toyota or Nippon Express, while Korea has 141 companies. Ministry of Finance expect the trade between Japan and Korea increase in area of steel industry or semiconductor industry.
Japan have had AEO mutual recognition with New Zealand, US. Signed with EU and Canada. On progress with Singapore, China and Malaysia.
(Additional Update)
This news was officially annoucned on May 20 by MOF press release.
http://www.mof.go.jp/customs_tariff/trade/facilitation/ka230520.htm
As for AEO operators, 370 companies are registered in Japan such as Toyota or Nippon Express, while Korea has 141 companies. Ministry of Finance expect the trade between Japan and Korea increase in area of steel industry or semiconductor industry.
Japan have had AEO mutual recognition with New Zealand, US. Signed with EU and Canada. On progress with Singapore, China and Malaysia.
(Additional Update)
This news was officially annoucned on May 20 by MOF press release.
http://www.mof.go.jp/customs_tariff/trade/facilitation/ka230520.htm
2011年5月14日土曜日
Japan reflect WA Dec 2010 list update on July 1st, 2011
As of March 05, 2011, Japanese METI published new export control list update in its public comment web site. The list update is to reflect the list change of international regimes, such as Wassenaar Arrangement ("WA") December 2010 list update.
On May 13, 2011, METI announced the list update will be officially issued on May 18, and be forced in place on July 1, 2011. I will analyze the list change after May 18.
(Reference: http://www.meti.go.jp/press/2011/05/20110513001/20110513001.html )
On May 13, 2011, METI announced the list update will be officially issued on May 18, and be forced in place on July 1, 2011. I will analyze the list change after May 18.
(Reference: http://www.meti.go.jp/press/2011/05/20110513001/20110513001.html )
2011年5月10日火曜日
Japan-EU AEO mutual recongnition implement on May 24, 2011
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.
Now, Japanese MOF and Customs jointly announced that Japan-EU AEO mutual recognition will be implemented on May 24, 2011.
AEO trader in Japan will be treated as good compliance trader in EU by informing JPN-EU mutual recognition code to their trade counter part in EU. The benefits would be their goods will go through a so called "green lane" in customs clearance.
Likewise, in order to have mutual recognition benefits in Japan in trade with EU porters, Japanese trader request their JPN-EU mutual recognition code to EU partners, and input the code into NACCS system in customs declaration, will be treated accordingly. The code is 12 digits number like A1B34567NL00.
(Reference: http://www.customs.go.jp/zeikan/seido/aeo/leaflet_23-05.pdf )
Now, Japanese MOF and Customs jointly announced that Japan-EU AEO mutual recognition will be implemented on May 24, 2011.
AEO trader in Japan will be treated as good compliance trader in EU by informing JPN-EU mutual recognition code to their trade counter part in EU. The benefits would be their goods will go through a so called "green lane" in customs clearance.
Likewise, in order to have mutual recognition benefits in Japan in trade with EU porters, Japanese trader request their JPN-EU mutual recognition code to EU partners, and input the code into NACCS system in customs declaration, will be treated accordingly. The code is 12 digits number like A1B34567NL00.
(Reference: http://www.customs.go.jp/zeikan/seido/aeo/leaflet_23-05.pdf )
2011年5月5日木曜日
Navigating Japan's Export Control Regime
I wrote an export control article, with contribution of my colleagues, for professional export control magazine, WorldECR issue 2, April 2011.
My part is page 17 to 21, total 5 pages of article, outlining key elements of Japan's export control summary, such as Legal structure, Reasons for control, Framework of control, License management, ICP, Recent update, and FAQ for traders.
The article can be found here: http://www.bryancavetrade.com/sitebranches/publications/docs/Japan%20-%20Bryan%20Cave.pdf
(reference: www.worldecr.com )
My part is page 17 to 21, total 5 pages of article, outlining key elements of Japan's export control summary, such as Legal structure, Reasons for control, Framework of control, License management, ICP, Recent update, and FAQ for traders.
The article can be found here: http://www.bryancavetrade.com/sitebranches/publications/docs/Japan%20-%20Bryan%20Cave.pdf
(reference: www.worldecr.com )
2011年5月2日月曜日
What's the most popluar FTA for Japanese exporter?
Japan currently implement total 11 FTAs, with Singapore, Malaysia, Mexico, Chile, Thai, Indonesia, Brunei, Asean, Philippines, Switzerland, and Vietnam. What FTA is the most popular for Japanese exporter?
METI announced one interesting statistics to answer this question. It is the number of Certificate of Origin ("CO") in Japan. Please be noted this number shows the FTA utilization in export from Japan, so import into Japan is different.
In March 2011, total 10,305 COs for FTA were issued in Japan. Among them, the top is for Thailand (4,785 issued), and the second is for Indonesia (2,504 issued). The combination of Thailand and Indonesia consists of 71% of FTA COs. Then, following countries are:
3rd: Malaysia (788)
4th: Chile (523)
5th: Mexico (462)
6th: Asean (429)
Although this is the result of the latest one month record, but representing comprehensive picture what FTAs are popularly used for Japanese exporters.
(Reference: http://www.meti.go.jp/policy/trade_policy/epa/file/co_issuance.pdf )
METI announced one interesting statistics to answer this question. It is the number of Certificate of Origin ("CO") in Japan. Please be noted this number shows the FTA utilization in export from Japan, so import into Japan is different.
In March 2011, total 10,305 COs for FTA were issued in Japan. Among them, the top is for Thailand (4,785 issued), and the second is for Indonesia (2,504 issued). The combination of Thailand and Indonesia consists of 71% of FTA COs. Then, following countries are:
3rd: Malaysia (788)
4th: Chile (523)
5th: Mexico (462)
6th: Asean (429)
Although this is the result of the latest one month record, but representing comprehensive picture what FTAs are popularly used for Japanese exporters.
(Reference: http://www.meti.go.jp/policy/trade_policy/epa/file/co_issuance.pdf )
2011年4月30日土曜日
Additional obligation in General Bulk License and new benefit as return exemption in export of dual-use items
As of April 01, 2011, additional new obligations and one exemption benefit in General Bulk License (“GBL”) came into effect in Japan based on the amendment of Notification of Bulk License （包括許可取扱要領）which was issued by Ministry of Economy, Trade and Industry (“METI”) on December 6, 2010. This amendment imposes additional end-user screening requirements when GBL holder export eligible items to non-white countries in using this bulk license. The new benefit is that the GBL now covers, as one of its options, an foreign origin dual-use item can be returned for repair or replacement to originating country without individual export license. For convenience of exporter, the GBL holder does not necessarily conduct accurate classification of the item if he/she is not able to do so, as long as it is identified as non-military items.
The additional obligations are following two points, and only applicable to the export transaction to non-white country only. In other words, if the export transaction under GBL is to white country, there is no new obligations at all.
1. To make sure the possible end-user and final destination is compliant in “stock sales”.
If an export transaction is for “stock sales” which is defined as “no end-user is specified at the time of export” or “movement of goods for inventory accumulation”, the GBL holder needs to make sure the possible end-user name, and to confirm an item will not be re-exported to third country where the GBL does not cover as eligible destination. For example, the exporter under GBL needs to keep in record like, “This item is for that industry, possible end-user would be ABC company in XYZ country”. This is the a kind of diversion risk management so that the item is not re-exported to Iran, North Korea, or Iraq etc., which are non-eligible countries of GBL under stock sales operation. In addition, METI impose to GBL holder that this stock sales screening “should be conducted by designated internal procedure”, therefore GBL holder may need to amend Internal Compliance Program (“ICP”) and relevant operational procedures accordingly. There is no requirement to report this stock sales screening each time of the transaction to government authority, but should be kept in record for anticipated audit by METI
2. If the end-user is military entity or relevant to army, police, or intelligence organization, the report to METI is required in advance to the export transaction.
There has been restriction in GBL if an eligible item is likely to be used for Weapon of Massive Destruction (“WMD”) or conventional weapon purpose, the GBL lose its validity or report to METI is required depending on the destination country and the sensitivity of the situation. In addition to the current restriction, if an end-user is military entity, the report to METI is required before the export transaction as additional requirement.
The amendment of GBL obligation is “carrot and stick” to exporter. As benefit to GBL holder, return shipment in free of charge basis is added as new eligible transaction. Although there has been return export exemption in Japan based on Export Trade Control Order Article 4, but the exemption was limited to an item which was originally exported from Japan, thus could not cover the return of foreign origin item. Now for GBL holder with relevant documents stating the reason of return, the import declaration copy, and Bill of Lading in importing, it is possible to export dual-use items without individual license and without classification of items, as long as it is not arms or weapons.
The additional exemption benefit may not be relevant to all exporters, but new requirements are possibly applicable to all GBL holders, because amendment of ICP and operational procedure may be required according to each exporter’s status, regardless of the frequency of the transaction under GBL. In case an exporter amend ICP, it should be submitted to METI within one month. Also, ICP holder must submit annual compliance “check list” to METI in July every year as obligation. The reporting form of this check list is also updated to reflect this GBL obligation amendment, ICP holder is encouraged to review whether these new obligations are relevant to the export operation.
(Reference: http://www.meti.go.jp/policy/anpo/law09.html#015 )
The additional obligations are following two points, and only applicable to the export transaction to non-white country only. In other words, if the export transaction under GBL is to white country, there is no new obligations at all.
1. To make sure the possible end-user and final destination is compliant in “stock sales”.
If an export transaction is for “stock sales” which is defined as “no end-user is specified at the time of export” or “movement of goods for inventory accumulation”, the GBL holder needs to make sure the possible end-user name, and to confirm an item will not be re-exported to third country where the GBL does not cover as eligible destination. For example, the exporter under GBL needs to keep in record like, “This item is for that industry, possible end-user would be ABC company in XYZ country”. This is the a kind of diversion risk management so that the item is not re-exported to Iran, North Korea, or Iraq etc., which are non-eligible countries of GBL under stock sales operation. In addition, METI impose to GBL holder that this stock sales screening “should be conducted by designated internal procedure”, therefore GBL holder may need to amend Internal Compliance Program (“ICP”) and relevant operational procedures accordingly. There is no requirement to report this stock sales screening each time of the transaction to government authority, but should be kept in record for anticipated audit by METI
2. If the end-user is military entity or relevant to army, police, or intelligence organization, the report to METI is required in advance to the export transaction.
There has been restriction in GBL if an eligible item is likely to be used for Weapon of Massive Destruction (“WMD”) or conventional weapon purpose, the GBL lose its validity or report to METI is required depending on the destination country and the sensitivity of the situation. In addition to the current restriction, if an end-user is military entity, the report to METI is required before the export transaction as additional requirement.
The amendment of GBL obligation is “carrot and stick” to exporter. As benefit to GBL holder, return shipment in free of charge basis is added as new eligible transaction. Although there has been return export exemption in Japan based on Export Trade Control Order Article 4, but the exemption was limited to an item which was originally exported from Japan, thus could not cover the return of foreign origin item. Now for GBL holder with relevant documents stating the reason of return, the import declaration copy, and Bill of Lading in importing, it is possible to export dual-use items without individual license and without classification of items, as long as it is not arms or weapons.
The additional exemption benefit may not be relevant to all exporters, but new requirements are possibly applicable to all GBL holders, because amendment of ICP and operational procedure may be required according to each exporter’s status, regardless of the frequency of the transaction under GBL. In case an exporter amend ICP, it should be submitted to METI within one month. Also, ICP holder must submit annual compliance “check list” to METI in July every year as obligation. The reporting form of this check list is also updated to reflect this GBL obligation amendment, ICP holder is encouraged to review whether these new obligations are relevant to the export operation.
(Reference: http://www.meti.go.jp/policy/anpo/law09.html#015 )
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