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

7-(2) Introduction of Pre-Filing System

1. Complainant: Tokyo Chamber of Commerce and Industry

2. Ministry concerned: Ministry of Finance

3. Background Information:

In Japan, in principle, one receives his cargo after the following procedure: it is placed in the bonded area; import declaration is made; examination and inspection are performed; and import is permitted. In 1988, the pre-arrival examination system was introduced to expedite the receipt of imported cargo. The system is the following:

* It allows the importer to submit to the customs import-related documents (referred to as pre-declaration) before the cargo arrives (up to 11 days before the planned import declaration date). By completing the examination before the cargo arrives,
* The customs can notify the importer whether an inspection is necessary. If no inspection is necessary, the cargo, after arriving in Japan (i.e. after confirmation is made that it has been placed in the bonded area), instantly is permitted to be imported by a computer system (NACCS).

The United States, on the other hand, employs a pre-filing (permit) system. Filing for receipt can be made up to five days before the planned arrival date in case of sea cargo and after departure of the flight in case of air cargo. By making the pre-filing, the importer can undertake receipt preparations in advance. In addition, customs provides pick-up permission before the cargo's arrival. Therefore, if the cargo does not require any inspections, it may be picked up immediately after its arrival.

The United States is the only industrialized country to have the pre-filing (permit) system. In other countries, import permission is granted after the cargo's arrival.

4. Complaint:

As import customs clearance procedure for imported cargo is performed after the cargo is carried into the bonded storage area, it takes at least two days after the cargo arrives until it can be delivered. The pre-arrival examination system is applied to customs clearance procedure for urgent cargo, but it is "a tentative declaration" that is made in the system. The import permission is granted only after the cargo arrives, notice of its transfer into bonded area is submitted, and the declaration is switched to "a formal declaration".

In case of urgent cargo, one or two hours may be crucial. By utilizing the formal declaration before the cargo is carried into the bonded area, as with the pre-filing (permit) system in the United States, the ministry concerned should allow the importer to receive and pick up the cargo immediately after it arrives.

5. Results of Deliberation:

The tasks pertaining to import customs clearance procedures, which serve as the interface for international and domestic distribution, must meet the users' needs for prompt customs clearance.

The ministry concerned has, based on the Deregulation Action Program (March 1995), decided to implement early in fiscal year 1996 "immediate release system of air cargo at the time of arrival report" to further expedite the customs clearance procedure for air cargo. Under this system, out of the cargoes that the customs has determined require no inspection, urgent cargoes that importers wish to pick up immediately are promptly permitted to be imported as soon as their arrival is confirmed, without waiting for confirmation of their transfer into the bonded area. The introduction of this system, the ministry concerned claims, will considerably reduce the time required between cargo arrival and import permit, and will have comparable effects as the system in the United States in terms of expedient customs clearance.

To make the system truly effective, the ministry concerned should pay much attention to the operational aspects including the scope of its application and the procedures in order to fully respond to the users' needs for prompt customs clearance. For example, the ministry concerned should consider the specifics of confirmation of cargo's arrival and make it as convenient as possible for the user. In essence, the ministry concerned should manage the system so that it deserves the name of "immediate release system". At the same time, it is necessary to inform all those concerned of the creation of this system.

Furthermore, observing how the system is utilized in air cargo, it is necessary to consider applying the system to sea cargo in order to expedite customs clearance.

Government decision (March 26, 1996)

7-(2) Introduction of Pre-Filing System

Much attention will be paid to the operational aspects of "immediate release system of air cargo at the time of arrival report", which will be introduced for air cargo in April 1996, including the scope of its application and the procedures, in order to fully respond to users' needs for prompt customs clearance. For example, the specifics of confirmation of cargo's arrival will be examined and made as convenient as possible for the users. In essence, the system will be managed so that it deserves the name of "immediate release system". At the same time, it is necessary to inform all those concerned of the creation of this system.

Furthermore, observing how the system is utilized in air cargo, it is necessary to consider applying the system to sea cargo in order to expedite customs clearance.

Follow-up (May 12, 1997)

7-(2) Introduction of Pre-Filing System

The "immediate release system for air cargo at the time of arrival" will be operated so that import permits are truly issued immediately, by using NACCS to confirm the arrival of air cargo for which pre-filing has been used, to ensure users' convenience. In addition to notification of these changes in the Official Gazette, the head of the Customs Bureau issued a notification (April 17, 1996) informing the heads of customs houses and customs officers of this.

Importers, customs brokers and other concerned parties were also informed via weekly customs bulletins, and each customs house also held a briefing to inform importer, customs brokers and other parties of the system.