6th Report of Market Access Ombudsman Council (March 16, 2000)

4-(2) Improvement of customs clearance procedures such as NACCS using the Internet

1. Complainant: Tokyo Chamber of Commerce and Industry

2. Ministry concerned: Ministry of Finance

3. Background:

(1) Method of connecting to NACCS

NACCS (Nippon Automated Customs Clearance information processing System, which includes Sea-NACCS and Air-NACCS) is a computer system using dedicated lines and terminals which connect the NACCS Operations Organization, the system's operating entity, with customs offices, customs brokers, steamship companies, airlines, banks and others, to carry out import and export customs clearance procedures for air and sea cargo speedily and reliably.
To use NACCS, users are required to sign a contract with the NACCS Operations Organization and pay user and connection fees. Changes made to the Sea-NACCS system in October 1999 now make it possible to use personal computers available on the market or company intranets as access terminals, but connections are still made only over dedicated lines.

(2) Prior instruction system

The prior instruction system allows importers to verify tariff codes and tariff rates for the cargo to be imported with customs and to receive a reply beforehand. Information is currently supplied in three ways: written reply, verbal reply or by e-mail.
In the case of a written reply, attaching this reply to the import declaration basically ensures that this tariff code and tariff rate will be used during customs inspection. But in the case of e-mail and verbal replies, they are considered as reference information and they lack the same authority as written replies.

(3) Search system for classification information

The search system for classification information consists of a database based on prior instruction examples, but dedicated terminals are located only in the main customs offices throughout the country and may only be used there.

4. Complaint:

(1) Customs procedures using NACCS may currently be carried out only by connecting between dedicated lines and the NACCS Operations Organization host computer. However, NACCS should be modified so that, like MITI's Foreign Exchange and Trade Control Law-related procedures, the system can be accessed over the Internet.

(2) Prior instruction of tariff codes and tariff rates is done frequently, but since inquiries and replies by e-mail are not considered to have the same authority as written replies, users are forced to make inquiries and receive replies in writing, which is inefficient. E-mail inquiries and replies should be accorded the same authority as written inquiries and replies. In the private sector, even transactions involving funds transfers, like banking or stock transactions, are done over the Internet safely and on an extensive scale. Given today's technological standards, the issues of security of replies by e-mail and volume of electronic information are technologically feasible.

(3) Under the current search system for classification information, when users attempt to check past cases of prior instruction, they cannot use the system unless they go to a customs office. Since this is impractical, the information should be put into a database which can be accessed through the Internet, to allow users to check past inquiries and replies.

5. Results of deliberation:

NACCS was first introduced in 1978 for air cargo and was hailed as a pioneer in the electronic government administration. The ministry concerned indicates that it will consider providing access to the system through the Internet if the technological issues involving safety can be solved and if there is strong demand from private sector users for Internet access.
Regarding prior instruction by e-mail, the ministry concerned is making efforts to reply with information which can be used for reference as much as possible, within the scope of the limited information which can be obtained by e-mail, and intends to take an active stance regarding the use of e-mail.
Regarding the search system for classification information, the ministry concerned indicates that it will take steps to allow access through the Internet, if the issues of capacity and so on can be resolved.

Based on the above, the ministry concerned should take the measures below concerning improving NACCS customs procedures using the Internet.

(1) Regarding NACCS, in conjunction with revision of to Air-NACCS in autumn 2001, active efforts should be made to allow use of the system from the Internet. Measures should also be taken as soon as possible to allow Sea-NACCS, of which revision was made in October 1999, to be accessed from the Internet without waiting for the next modifications to the system, which are scheduled for 2008.

(2) Regarding prior instruction by e-mail, rather than not granting authority equivalent to that of written replies to all e-mail replies, the ministry should study giving e-mail replies the same authority as written replies, when classification is simple and sufficient information is provided, and should reach a conclusion regarding realistic ways of accomplishing this, during 2000.

(3) Regarding the search system for classification information, the ministry should complete a study during 2000 aimed at establishing a new system, in addition to utilizing search system on dedicated terminals located at customs offices, allowing users to view and search for classification information over the Internet.

Government decision (March 21, 2000)

4-(2) Improvement of customs clearance procedures such as NACCS using the Internet

The following measures will be taken to improve customs procedures such as NACCS using the Internet.

(1) Regarding NACCS (Nippon Automated Cargo Clearance System), in conjunction with modification to be made to Air-NACCS in autumn 2001, active efforts will be made to allow the system to be used from the Internet. Measures will also be taken as soon as possible to allow Sea-NACCS, to which changes were made in October 1999, to be accessed from the Internet without waiting for the next modifications to the system scheduled for 2007.

(2) Regarding prior verification by e-mail, rather than granting authority equivalent to that of written replies to all e-mail replies, the ministry will study giving e-mail replies the same authority as written replies, when classification is simple and sufficient information is provided, and reach a conclusion on how to accomplish this, during 2000.

(3) Regarding the search system for classification information, a study will be completed during 2000 concerning establishing a new system, in addition to the viewing and search system on dedicated terminals located at customs offices, allowing users to view and search for classification information over the Internet.