| TOP |
| 5th Report of Market Access Ombudsman Council (March 17, 1998) |
1. Complainant: Japan Foreign Trade Council, Tokyo Chamber of Commerce
2. Ministry concerned: Ministry of Finance
3. Complaint:
(1) Calculation of tax reduction at time of import is based on the sum indicated on the application form of confirmation on processing and assembling export cargo. Style processing details for each contract are appended to this application and applied for. It is customary for each contract to stipulate several styles for processing. As the calculation of tax reduction at time of import is made for each style, the calculations take time, delaying clearance. A simplified calculation method should thus be introduced, such as dividing by the volume of each contract.
(2) Concerning overseas consigned processing trade of outer garments and the like, at the time of exporting the relevant goods, submission of all materials leading up to the import of the relevant goods is necessary (example: marking sheets, cloth samples, documentation of calculations illustrating the process for calculating the cost price, etc.). However, the procedure should be simplified by reducing the documents that need to be submitted and the like.
(3) When sending goods back overseas once to have processing readjusted and then re-importing them, because it is difficult to prove that this is the case, the result is that tariffs are paid twice. Double collection of tariffs should be avoided by using IDs and invoices from time of import.
4. Corresponding Policy of the Ministries concerned:
(1) Under the tax reduction system for re-import of processed goods (Temporary Tariff Measures Law, Article 8), when raw materials are exported from Japan, processed or assembled overseas, and then re-imported to Japan in product form, the tariff on the portion pertaining to the exported raw materials used in the products is abated from the tariff on the product.
In applying this system, for products having the same tariff number and tariff rate, because it is necessary to calculate the reduced tax amount by comparing the tax value of the portion of exported materials used with the tax value of the products, it is necessary to calculate the tariff reduction for each product style. (Usually, not only with the tariff number and tariff rate will differ with the style, but the percentage, etc.; of exported materials used will also differ.)
However, for products with different styles that are classified under the same tariff number, if processing fees are the same and dimensions differ in keeping with size differences of the relevant products, simplified handling of goods having multiple styles is approved, in which a collective tax reduction is calculated; this fact will be put in writing to again make it common knowledge to customs offices.
(2) In calculating the reduced amount of tax in the tax reduction system for re-import of processed goods, as it is necessary to accurately determine the volume, etc., of exported raw materials used, when an export declaration on the raw materials is made, the application form of confirmation on processing and assembling export cargo must be submitted that provides details on cargo (product) processing, assembling, etc. Moreover, for outer garments and the like, to expedite the confirmation of raw materials at time of product import, the submission of cloth samples is requested before the raw materials are exported.
As the specifications on markings make it possible to expedite the confirmation of how many meters of uncut cloth are necessary to manufacture one suit of clothing, submission is requested the time the import declaration is made.
In any matter, the submission of these materials is required for prompt confirmation of the sameness of the products and the exported materials and for appropriate calculation of the tax reduction. So that the submission of materials that are not indispensable to calculating the tax reduction is not requested, this fact will be put in writing to again make it common knowledge to customs offices.
(3) Under the stipulations on tax refunds for goods in breach of contract in Article 20 of the Customs Tariff Law, when imported cargo for which tariffs have been paid must be exported and returned because the quality, quantity, etc., differ from the contents of the contract, it is possible to have the tariffs refunded within six months (extension to up to one year possible) from the day that permission was given to import the pertinent cargo by bringing the cargo to a bonded area.
In keeping, when these stipulations are applied, when imported products are exported for the purpose of repair or mending and then re-imported, although the tariff is paid again, the originally paid tariff will be refunded. In addition, because it will not be necessary to prove at time of re-import that goods were exported from Japan when the double payment of tariffs is abolished, we wish to consult with the nearest customs offices on actual cases.
5. Remarks
The complainant's opinion is as follows.
For "(1)," "(2)" and "(3)": "I understand that this is the policy as it now stands."