Provisional Translation
| OTO No. | 579 | Classification | MOF-105 |
|---|---|---|---|
| Date of Acceptance | September 1, 1998 | Ministry/Agency Receiving Complaint | Economic Planning Agency |
| Responsible Ministries | Ministry of Finance | Related Laws | Temporary Tariff Measures Law |
| Complainant | Domestic firm | Exporting Countries | China |
| Subject | Simplification of import procedures for articles processed under license | ||
| Details of Measures | Description of Complaint: 1. In order to import winter clothing and rainwear processed on consignment using fabric made in Japan under the provisions of Article 8 of the Temporary Tariff Measures Law, the paperwork required is too great and takes a considerable amount of time to prepare. 2. For example, marking sheets and cutting reports are merely clue to know the types of fabric used and cannot be used to determine the amount of fabric used; accordingly, these forms are not essential in checking conformity of finished products to raw materials. In particular, when planned imports of the same model number are repeated, it seems unnecessary to submit the same paper each time. 3. Accordingly, the complainant believes that except for documents checking conformity of products to raw materials exported, needed to calculate tariff reductions for goods on consignment others should be eliminated as much as possible. In particular, exporters should be exempted from submitting marking sheets and cutting reports for goods on consignment in the case of planned imports of the same model number. The ministry replied as follows: 1. The tariff reduction for processed re-imported goods (Article 8 of the Temporary Tariff Measures Law) is a scheme which reduces tariffs on imported products by the amount of tariffs on exported raw materials processed or assembled abroad in to those products. 2. In applying this scheme to imported products, it is necessary to submit documents verifying that the raw materials exported were used in manufacturing the products subject to reduced tariffs, and documents essential to calculating the amount of tariff reduction. 3. Since the reduced tariff is calculated by multiplying the taxable amount of the raw materials by the tariff rate on the product, it is necessary to ascertain the amount of raw materials used in manufacturing one garment of the products. Marking sheets and cutting reports are required as documents for checking that amount. However, if this amount can be confirmed, it is not always necessary to submit both marking sheets and cutting reports. 4. In the case of products imported in lots under the same contract, if documents (marking sheets, etc.) for checking the amount of fabric needed for the first lot are submitted, it is not necessary to submit them again when subsequent lots are imported. |
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| Classification of Processing | Ca | Directions | II-a |
| Remarks | |||