Provisional Translation
| OTO No. | 535 | Classification | MOF-96 |
|---|---|---|---|
| Date of Acceptance | September 21, 1995 | Ministry/Agency Receiving Complaint | Ministry of International Trade and Industry |
| Responsible Ministries | Ministry of Finance | Related Laws | Customs Tariff Law |
| Complainant | Domestic firm | Exporting Countries | China |
| Subject | Review of tariff price under Clause 4 of the Customs Tariff Law, when bamboo products are imported | ||
| Details of Measures | The complainant was advised as follows, regarding the obligation to add in the cost of machinery provided free of charge to produce bamboo skewers and split bamboo chopsticks in China, when declaring the dutiable cost of bamboo products made with the said machinery. 1. Regarding adding in the cost of production machinery provided abroad free of charge to the dutiable cost: (1) Taxation standards for imported goods are set out in the Customs Tariff Law, in order to ensure fairness and balance in the duty evaluation system and avoid subjective interpretations, and are implemented in accordance with GATT Article 7, which is the international rule for evaluation of customs duties. (2) According to Article 4 of the Customs Tariff Law, the dutiable cost is defined as "the total amount for imported goods which the buyer pays or should pay to the seller, " plus additional costs for transportation, etc., which can be paid either directly or indirectly. (3) When the buyer provides production machinery free of charge, this constitutes an indirect payment from the buyer to the seller, and the cost of the production facilities must be added in to the dutiable cost set out in Article 4 of the Customs Tariff Law. (4) As described in (1) above, the Customs Tariff Law follows international rules, and adding the cost of production facilities to the dutiable cost is the uniform international practice. (5) Regarding customs duties, the ministry has made efforts to promote knowledge of the current rules pertaining to customs duty evaluation since the Customs Tariff Law's revision in 1980 and will continue to do so. 2. Regarding tariff classification for bamboo products: (1) The goods imported should be clearly described to ensure that appropriate customs duties are applied, and for this purpose it is important for all countries to cooperate in devising appropriate classifications for categories. The Appendix - Harmonized System for Product Naming and Classification-to the HS Treaty, which is the international treaty on uniform goods classification, was developed based on this concept. As of April 1995, a total of 82 bodies, including the United States, the EU and Japan, had concluded the treaty. (2) Japan's Annexed Tariff of the Customs Tariff Law conforms to the HS, and Class 44, Note 6 states, "wood products include bamboo and other wood materials." The complainant was requested to understand that as a country which has signed the HS Treaty, Japan is obligated to abide by the treaty and thus cannot classify bamboo products as other than wood products. |
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| Classification of Processing | D | Directions | I-a |
| Remarks | |||