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

3-(7) Relaxing the requirement for a letter of proxy for duty-free import under the Temporary Tariff Measures Law

1. Complainant: Keidanren

2. Ministry concerned: Ministry of Finance

3. Complaint:

When importing an item duty-free under the Temporary Tariff Measures Law, the import declaration is usually made under the name of the user of the item in question. But because in many cases the user is in fact importing, with delivery left to a trading company, the customs authorities require that the import declaration show the names of both the user and the trading company under "importer" and verify the relationship between the parties by checking contracts or other documents.

According to the complainant, in the case of such imports, the customs authorities require a letter of proxy from the importer in addition to the contract. In cases where the relationship can be verified easily through a contract, the complainant believes that clearance should be allowed without requiring a letter of proxy.

4. Results of deliberation:

The ministry or agency concerned has replied that, in cases where the delegate relationship between the importer and the actual user can be verified easily through contracts, no letter of proxy will be required. This answer was found satisfactory by the complainant.

Government decision (May 27, 1993)

With regard duty-free imports under the Temporary Tariff Measures Law, in the case where the relationship between the importer and the actual user can be verified easily, no letter of proxy will be required.