| TOP |
| Report of the OTO Advisory Council (April 12, 1993) |
1. Complainant: Keidanren
2. Ministry concerned: Ministry of International Trade and Industry, Ministry of Finance
3. Complaint:
Automobile parts (parts and accessories) which are classified under Chapter 87 in the tariff schedules are treated as customs-duty-free but some parts, for example fabric used for upholstering automobile seats, or fanbelts, are currently dutiable.
Japan has made an international commitment to boost import of automobile parts, and the complainant believes that imposing duties on some auto parts lacks uniformity and that specially processed parts, parts cut to fit specific models and other parts obviously intended to be used in automobile which are currently dutiable should be treated as duty-free by classifying them in Chapter 87 of tariff schedules.
4. Results of deliberation:
Since customs classifications are based on the provisions of the HS Convention (the International Convention on a Harmonized Commodity Description and Coding System), it is inappropriate to attempt to solve this problem by changing customs classifications and their interpretation.
The ministry or agency concerned states that each customs office has an advance ruling system for posting information on applicable Customs tariff number, and that this can in some cases resolve the issue brought up by the complainant.