3rd Report of the Market Access Ombudsman Council (March 18, 1996)

3-(1) Simplification of Prior Confirmation Procedure for Fabrics of Silk and Other Fiber

1. Complainant: The Tokyo Chamber of Commerce and Industry

2. Ministry concerned: Ministry of International Trade and Industry

3. Background Information:

Since fiscal year 1976 Japan has held bilateral consultations to make quantitative arrangements for imports of silk fabrics (except for fabrics of silk and other fiber) in bilateral agreements from major suppliers, namely People's Republic of China and the Republic of Korea. The Prior Confirmation System has been implemented to ensure effectiveness of these arrangements and to prevent the falsification of place of origin makings and illegitimate imports (i.e. after the importation the silk made-up goods will be restored to and used as raw silk, silk yarn, or silk fabrics).

The Ministry of International Trade and Industry's headquarters and its regional bureaus handle procedures of the prior confirmation system for silk fabrics and specially woven silk fabrics. Since most of the applicants for silk products for Japanese "kimono" are concentrated in certain regions such as Kinki, regional bureaus confirm places of origin for these silk products. Applications for fabrics of silk and other fiber, silk bed linens, etc., have been accepted and examined by those officials with advanced specialized knowledge at the Ministry's headquarters. Such knowledge is required to undertake detailed verification because a series of illegitimate imports occurred in the past where importers made false declarations to make silk fabrics appear as if they were silk made-up products.

In addition, detailed information is required in the application form for silk products for Japanese "kimono", fabrics of silk and other fiber, silk bed linens, etc., because such information is necessary to prevent illegitimate imports where the importer falsifies what is actually a silk fabric as a silk made-up product.

4. Complaint:

(1) Whereas silk fabrics are handled by both the headquarters and regional bureaus of the Ministry of International Trade and Industry, fabrics of silk and other fiber are handled only by the headquarters of the Ministry. This is extremely inconvenient and should be remedied.

(2) The information required in the application form for prior confirmation is extremely detailed and some of the information is believed to be unnecessary. Therefore, the application form should be simplified.

5. Results of Deliberation:

(1) Having received the complaint, the ministry concerned plans to start accepting applications for fabrics of silk and other fiber, silk bed linens, etc., via its regional bureaus in April 1996, whereas they are accepted only at the headquarters now. Such a response is believed to reduce the burden on the applicant.

(2) As for the information required in the application form for prior confirmation of silk products for Japanese "kimono", fabrics of silk and other fiber, silk bed linens, etc., are kept the minimums required to identify the products in order to prevent illegitimate imports. Consequently, it is difficult to simplify the application form. In some cases, however, it may be possible to determine whether the cargo is as described in the application, for example, with photographs submitted by the applicant. Therefore, the ministry concerned is attempting to carry out the procedure flexibly on a case-by-case basis.

The flexible processing using photographs, etc., submitted by the applicant is commendable in that it reduces the burden on the applicant. It should be notified to relevant parties, as it is necessary to ensure transparency of the procedure. Considering the complaint, continual review should be conducted to simplify other application procedures in the interest of reducing the burden on the applicant.

Government decision (March 26, 1996)

3-(1) Simplification of Prior Confirmation Procedure for Fabrics of Silk and Other Fiber

Applications for prior confirmation of fabrics of silk and other fiber, silk bed linens, etc., which have been accepted only at the headquarters of the ministry concerned will also be accepted via its regional bureaus in April 1996. As for simplification of the information required in the application form for prior confirmation, the procedure will be carried out flexibly on a case-by-case basis and this will be notified to relevant parties. Continual review will also be conducted to simplify other application procedures.

Follow-up (May 12, 1997)

3-(1) Simplification of Prior Confirmation Procedure for Fabrics of Silk and Other Fiber

(1) Import Notice 55 No. 26 (directive from the head of the International Trade Administration Bureau) was amended on March 25, 1996, enabling MITI's regional bureaus to accept applications under the prior confirmation system for fabrics of silk and other fibers, silk bed linens, etc.

(2) From March 25, 1996, the information required on applications for prior confirmation has been simplified. Officers handling applications have been notified verbally that some flexibility will be introduced on a case-by-case basis, with applicants exempted from providing some particulars if photographs presented make it possible to ascertain whether the product is in fact that mentioned in the application.