JAPON

JAPAN

Dayana JaramilloSergio Vargas

Karolaine PereaCarlos Vega

TARIFFS

TARIFF PEAKS

Footware, headgear 32%

Agricultural products 17.8%

Fats and oils 40%

Prepared food 16%

Dairy products 65.2%

TARIFF ESCALATION

Simple rate average

First stage of processing 8%

Semi processed products 4.8%

Fully processed products 7%

TARIFF QUOTAS

Rice and its worked or prepared products

tariff quota quantity : 682,200 tones

Wheat, meslin, triticale and their processed products (wheat basis)

Tariff quota quantity : 5,740,000 tones

Evaporated milk

Tariff quota quantity : 1,585 tones

SAFEGUARDS Milk and cream, not concentrated nor containing added sugar or other

sweetening matter, of a fat content, by weight, exceeding 6%; sterilized,frozen or preserved; other cream of a fat content, by weight, of 13% ormore (other than sterilized, frozen or preserved)

Volume-based

Buttermilk, curdled milk and cream, kephir and other fermented oracidified milk and cream, sterilized, frozen, preserved, concentrated orcontaining added sugar or other sweetening matter, flavouring, fruits ornuts

Volume-based

Cereals, other than maize (corn), in grain form, pre-cooked orotherwise prepared, of wheat or triticale, n.e.s.

Price-based

Cereals other than maize (corn, in grain form pre-cooked orotherwise prepared, of rice, containing more than 30% byweight of rice, n.e.s.

Price-based

ANTIDUMPINGJapan Canada 1 case(s):

DS10

European Union (formerly EC) 6 case(s):

DS8, DS15, DS42, DS66, DS73, DS147

Korea, Republic of 2 case(s):

DS323, DS336

United States 6 case(s):

DS11, DS28, DS44, DS45, DS76, DS245

Short title: Japan — Apples

Complainant: United States

Respondent: Japan

Third Parties: Australia; Brazil; China; Chinese Taipei; European Communities; New Zealand

Agreements cited:(as cited in request for consultations)

Agriculture: Art. 4.2, 14GATT 1994: Art. XISanitary and Phytosanitary Measures (SPS): Art. 2.2, 2.3, 5.1, 5.2, 5.3, 5.5, 5.6, 6.1,6.2, 7, Annex B

Request for Consultationsreceived: 1 March 2002

Panel Reportcirculated: 15 July 2003

Appellate Body Reportcirculated: 26 November 2003

Article 21.5 Panel Reportcirculated: 23 June 2005

Mutually Agreed Solutionnotified: 2 September 2005

COUNTERVAILING DUTIES Japan did initiate an investigation into imports of cotton thread

from Pakistan in April 1983 but did not impose a countervailingduty because Pakistan eliminated the subsidy in February 1984.

Japan stablished first countervailing meassure on DynamicRandom Access Memories (DRAM chips) from Korea inDecember 17th, 2007.

SUBSIDIESRice:

To ensure stable supply-demand and prices of rice so as to stabilize national life and economy.

FY 2010 ¥ 337,100 million. (¥ 21,760 million)

Dairy and milk products:

To promote sound development of dairy farming and relatedindustries and to contribute to improvement of nation's dietary life,through stabilizing prices of milk and dairy products.

FY 2010: ¥22,759 million (¥26,278 million).

Bovine meat and Pig meat:

To ensure stable supply of bovine meat and pig meat, and stable development of cattle and pig farm management.

FY 2010: ¥ 133,523 million (¥ 105,792 million).

LICENCES

Import Licensing:

Most goods do not require an import license and can beimported freely. Japanese import licenses are required forcertain goods, including hazardous materials, animals,plants, perishables, and in some cases articles of high value.

FOREIGN RELATIONAL FTABilateral/regional free-trade agreements adopted by Japan

Japan has ten bilateral FTAs (EPAs) in force: Singapore, Mexico, Malaysia,Chile, Thailand, Indonesia, Brunei, the Philippines, Switzerland, and VietNam and one regional FTA with the ASEAN.

These FTAs include the application of preferential rates of duty, tradefacilitation, investment, movement of natural persons, competition policy,and improvement of the business environment.

The Agreement on ASEAN-Japan Comprehensive Economic Partnership(AJCEP) entered into force. Certain agricultural and industrial products,such as alcoholic beverages, tobacco, and steel products are excluded.

The Japanese Customs applies a preferential tariff based on a bilateral FTAor the AJCEP, depending upon the certificate of origin of the itemconcerned. The AJCEP eliminates tariffs on about 93% of the total value ofJapan's imports from ASEAN countries.

FTAs entered into force with Switzerland on 1 September 2009, and withViet Nam on 1 October 2009. FTAs Japan has concluded to dateeliminate tariffs on some 91% to 99.9% of the total value of bilateraltrade, all the FTAs exclude similar products, including certain items ofagriculture.

Fish and fish products; petroleum oils (other than crude oil); leather,leather products, and footwear; and laminated wood.

In FY 2010, the overall preferential tariffrange from 2.9% to 3.4%, compared withJapan's average applied MFN tariff of5.8%. The total tariff lines that are eitherzero or lower than the correspondingapplied MFN rates ranges between86.3% and 90.3%, and the percentage ofduty-free tariff lines in total is 81.2% to82.3%.

Some tariff lines, including meat,fruit juice, leather, and leatherproducts, are subject to tariff-ratequotas created especially under theFTA between Japan and Mexico.

Other bilateral/regional arrangements

Japan–U.S. bilateral relationship

Japan–EU bilateral relationship

APEC (Asia-Pacific Economic Cooperation)

ASEM (Asia-Europe Meeting)

PREFERENCES Generalized System of Preferences and other preferential arrangements

adopted unilaterally by Japan

Under the Generalized System of Preferences (GSP) scheme, Japan grants

preferential tariff treatment unilaterally to certain developing countries.

The Government has the authority to unilaterally designate, withdraw,

suspend, and limit the beneficiaries or products that receive preferential

treatment.

A beneficiary country is removed from the scheme (graduates) when it has

been classified in the World Bank statistics as a high-income country during

the three preceding years.

In 2009, Japan considered that Saudi Arabia had graduated from the scheme

and removed it from its GSP list.

Beneficiaries

Import value of preferential treatment

Share (%)

China 1,618,208 77.9

The Philippines 120,686 5.8

Viet Nam 51,858 2.5

Indonesia 49,184 2.4

India 49,158 2.4

Myanmar 26,952 1.3

Brazil 26,458 1.3

South Africa 25,627 1.2

Bangladesh 12,775 0.6

Thailand 10,666 0.5

World2,077,592 100.0

The volume for the granting of GSP preferential tariffs are determined inaccordance with the Temporary Tariff Measures Law, as follows:

The ceiling for FY2001 was established as 103% of the imports of a product inFY1999; and since 2002, the ceilings increased each year by 3% of theprevious year's ceiling.

The simple average GSP tariff rate is 4.6%, slightly lower than the overall applied MFN average tariff of 5.8% in FY2010.

Japan grants preferential tariff treatment under its GSP scheme to 140 developing countries and 14 territories for 341 agricultural and fishery products, and 2,641 industrial products at HS 9-digit level.

Exclusion of agricultural products and industrial products (rice and riceproducts, meat and meat products, fish and fish products, dairy products,pineapples, cereal products, textiles and clothing, leather and leatherproducts, and footwear); MFN tariffs apply to these products imported fromdeveloping countries.

SANITARY AND PHYTOSANITARY MEASURES

Since 2009, there have been several revisions to Japan's foodspecifications and standards, which are established under its FoodSanitation Law.

Revisions include changes to maximum residue limits (MRLs) forpesticides and amendments on food additives.

The positive list system in 2006, Japan established provisional MRLs for758 agricultural compounds or components, based mainly on Codexstandards.

For example, the maximum residue limits forazoxystrobin were raised, and those for metalaxylwere lowered.

New food additives, such as phenethylamine andbutylamine have been allowed.

The requirements to allow the importation of fresh fruits from some ofJapan's trading partners including:

Australia (grapefruit)

Chinese Taipei (Hylocerus undatus)

Colombia (Tommy Atkins mango)

Peru (Kent mango)

South Africa (Barlinka grape)

Turkey (grapefruit)

United States (sweet cherries),

Viet Nam (Hylocerus undatus)

One food additive (sodium starch phosphate), was no longer marketed and was replaced by modified starch.

The Quarantine measures on plants and animals are implemented, respectively,by the Plant Protection Station and the Animal Quarantine Service, bothattached to the Ministry of Agriculture, Forestry and Fisheries.

The Act on Ensuring of Safety of Pet Animals Feed, which entered into force on1 June 2009, set standards for pet foods and stipulated manufacturing andimport regulations.

The authorities in charge of Japan's SPS measures include the Ministry ofAgriculture, Forestry and Fisheries, and the Ministry of Health, Labour andWelfare, as well as the Food Safety Commission.

Japan currently imposes import prohibitions on

beef and poultry from various countries to prevent

the spread of BSE and avian flu.

In accordance with Food Sanitation Law, imported food may be exemptedfrom inspection upon importation. In 2010, 3,778 such laboratories wereregistered with the Gov.

The Food Sanitation Law, any allergenic substances contained in processedfoods must be indicated on the labels.

TECHNICAL BARRIER TO TRADEMEASURES DIRECTLY AFFECTING EXPORTS

Procedures The AEO covers warehouse operators, customs brokers, logistics

operators, and manufacturers.

The exportation documents that must be submitted to the Customs:Export declaration, invoice, and certifications, permits, or approvalsrequired by various laws and regulations.

The METI has designated the Japan Chamber of Commerce and Industry(JCCI) as an issuing body for certificates of origin.

Export taxes, charges, and levies: There are no export taxes or levies inoperation in Japan.

Border adjustment in respect of internal taxes and import duties

(relating to exports):

Consumption tax

The consumption tax is zero-rated on exported goods, international aviationand transportation services, and selling or licensing patents to foreigners.

Import duties

Import duties (tariffs) levied on raw materials used in the production ofcertain exported goods may be exempted, reduced, or refunded, asdetermined by the Gov.

Exemption and reduction of import duties

Items are fully exempted from tariffs: lead, cotton seed oil, soya bean oil cake,

certain starches and molasses, sugar, certain starches, molasses, wheat flour

and inputs approved by Customs.

Refund of import duties

Import tariffs applied to sugar are fully refundable depending on its sucrosecontent. The manufacturing factories require approval from Customs, andmust keep a manufacturing record of the products for two years.

Export cartels

Cartels has prohibition of cartels under Japan's Anti-monopoly Act, theauthorities indicate that there are no known export cartels in Japan.

Export promotion schemes: Export subsidies, finance, insurance, andguarantees. Japan has no subsidy or tax concession schemes to promoteexports.

MEASURES AFFECTING PRODUCTION AND TRADE

Taxation and tax-related assistance

Direct taxes, which include personal and corporate income taxes areexpected 53.5% of total tax revenue in FY2010 according to annual budgets.

Indirect taxes, which include consumption tax (VAT) and excise taxes (liquor,tobacco, gasoline and automobiles), account of total tax revenue in FY2010.

The highest personal income tax rate, including local taxes, is 50%, and thehighest corporate tax rate (including local taxes) is 40%.

National government tax revenue, FY2009 and FY2010(¥ billion and per cent)

Tax item

FY2009 Budget FY200 Budget

Amount Percentage Amount Percentage

Direct taxes 28,511 59.6 21,128 53.5

Personal income tax 15,572 32.6 12,614 32.0

Corporate income tax 10,544 22.1 5,953 5.

Special corporate income taxa, b 873 .8 ,290 3.3

Inheritance tax 1,522 3.2 1,271 3.2

Indirect taxes 19,305 40.4 18,334 46.5

Customs duty 846 .8 756 .9

Consumption tax 0,30 21.2 9,638 24.4

Liquor tax ,420 3.0 ,383 3.5

Tobacco tax 843 1.8 827 2.1

Gasoline tax 2,628 5.5 2,576 6.5

Liquefied petroleum gas tax 3 0.0 2 0.0

Aviation fuel tax 83 0.2 77 0.2

Petroleum and coal tax 50 . 480 .2

Promotion of power resources development tax 35 0.7 330 0.8

Motor vehicle tax 646 1.4 447 1.1

Tonnage tax 0 0.0 8 0.0

Stamp tax 985 2.1 ,024 2.6

Local Gasoline taxa, b 28 0.6 276 0.7

Liquefied petroleum gas taxa, b 3 0.0 2 0.0

Aviation fuel taxa, b 5 0.0 4 0.0

Motor vehicle taxa, b 323 0.7 307 0.8

Special tonnage taxa, b 3 0.0 0 0.0

Special tobacco surtaxb 95 0.4 58 0.4

Total 47,816 00.0 39,462 00.0

THANKS