Report of the OTO Advisory Council (April 12, 1993)

1-(2) Shortening time required for assigning a customs tariff number to imported foods, and clarifying classification standards

1. Complainant: Japan Trade Council (Nihon Boekikai)

2. Ministry concerned: Ministry of Finance

3. Complaint:

When a product is being imported for the first time and it is difficult to assign it a customs tariff number, importers usually receive advance ruling from customs authorities and verify the number of the applicable customs tariff schedules, the applicable tariff rate, and whether the item is subject to import quotas.

According to the complainant, in some cases it takes up to one month to receive an answer from customs authorities. The complainant feels that the classification standards, on which assignment of a customs tariff number is based, should be clarified to enable importers to determine customs classification beforehand.

4. Results of deliberation:

Since application of customs classifications affects importers' business plans, the government believes it is important to make classification standards as clear as possible. Accordingly, the ministry or agency concerned should take positive action to release more classification examples.

The ministry or agency is currently reviewing steps to increase the number of classification examples made available, and it is hoped that importers will also render active cooperation.

Government decision (May 27, 1993)

The assignment of customs tariff numbers is based on the imported food classification standards. In order to clarify these standards, more classification examples need to be released.