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

3-(4) Waiving requirement to present original import permit when re-importing items after free repairs

1. Complainant: Keidanren

2. Ministry concerned: Ministry of Finance

3. Complaint:

Tariffs on imported cargoes are based on the assessed value noted on the import (tariff payment) declaration. Ascertaining whether the value shown is appropriate, however, is usually determined by the price shown on the invoice attached to the import (tariff payment) declaration.

Since no import transaction (buying/selling) actually takes place in the case of items re-imported after free repairs, the price shown on the invoice when re-importing is "0," but in many cases the invoice shows a separate nominal price for the item, for the purpose of customs procedures.

The complainant states that the customs authorities, in some re-import cases, require importers to produce the import permit and invoice used when the item was first cleared through customs. In cases where the invoice attached for re-import shows a nominal value, the complainant believes that assessed value can be determined on the basis of this price, and that the documents submitted when the item was originally imported should not be required.

4. Results of deliberation:

Customs authorities sometimes require importers to produce documents in order to appropriately assess customs valuation. The necessary documents vary according to the contents of each application, and therefore it is inappropriate to declare that import permits and other documents issued when the item was first imported are uniformly unnecessary, as the complainant contends.

Considering the burden of applicants, however in the case described above when nominal price is shown on the invoice at re-import, as far as possible, the customs authorities should not require importers to present the import permit and other documents issued when the item was originally imported.

The ministry or agency concerned, bearing in mind that this complaint was submitted, should reconfirm that the applicant should be required to present only essential documents.

Government decision (May 27, 1993)

In the case of items being re-imported after free repairs, the ministry or agency concerned should reconfirm that the applicant should be required to present only essential documents.