OTO No.610

OTO No.	610	Classification	MOF-110
Date of Acceptance	September 7, 2000	Respective Office Receiving Complaint	Ministry of Economy, Trade and Industry (Ministry of International Trade and Industry) [JETRO]
Responsible Ministries	Ministry of Finance	Related Laws	Customs Law
Complainant	Domestic firm	Exporting Countries	China
Subject	Review of rules for import customs inspection costs and clarification of standards for deciding whether to subject certain imports to such inspection
Description of Complaint	The complainant imports electric devices (small motors and transformers) in parcels from China. Of the six parcels imported into Japan in the past two years, three were subjected to random inspection. The other day, even alternative products (small motors) of claimed products were inspected. Whether to subject certain imports to inspection is up to the customs authorities. But inspection costs (including transportation and packing costs) are always uncertain and cannot be added to estimates for submission to clients. If the customs authorities conduct inspection in their power, they should bear inspection costs. The authorities should also clarify the standards for deciding whether to subject certain imports to random inspection.
Details of Measures	The ministry replied as follows: (1) Those willing to import cargoes are required under the provisions of Article 67 (export or import permits) of the Customs Law to have the cargoes undergo due inspection before receiving import permits. The inspection under the article is designed for trading order maintenance purposes including adequate collection of customs and prevention of illegal imports such as narcotic drugs and handguns. Such treatments are also made in foreign countries (including the European Union, the United States and South Korea). Importers are required to accept inspection and shoulder costs for transporting imports to inspection sites. (2) The customs authorities decide whether to inspect certain imports. They base such decision on comprehensive consideration of various information collected through computer and other systems, in accordance with names, prices, exporting countries and other data as reported by importers on imported cargoes. (3) The customs authorities have given due considerations to requests for prompt customs clearance and to smooth distribution of imports. They have taken measures to shorten inspection time and improve the efficiency of inspection, including the introduction of large X-ray inspection systems that can inspect containers on trailers.
Status of Processing	Processed (September 20, 2000)	Classification of Action	D
Remarks	A written reply was made on September 19, 2000.