| TOP |
| 6th Report of Market Access Ombudsman Council (March 16, 2000) |
1. Complainant: Osaka Chamber of Commerce and Industry
2. Ministry concerned: Ministry of Finance
3. Complaint:
Regarding the system to exempt re-imported products from customs duties based on Article 8 of the Temporary Tariff Measures Law, it takes considerable time and effort to prepare the necessary paperwork and attach the documentation required relating to procedures from customs clearance for export to customs clearance for import.
For example, predicated on the use of this system, when fabric is exported and processed and re-imported as garments, export procedures for fabric allow declaration to be made on the basis of roughly estimated amount of fabric required, multiplied by the number of garments. Product import procedures, however, require importers to work out the amount of fabric required based on the amount of fabric needed for making each size, multiplied by the number of garments in each size. These figures are then compared with the export figures, and if the difference is substantial, customs requires a processing certificate from the overseas sewing plant.
However, obtaining such certificates from plants abroad (particularly China) takes time and effort, and meanwhile the goods remain in port-side warehouses.
Accordingly, when finished products are imported, importers should be allowed to calculate the amount of fabric used by multiplying the average amount of fabric required per garment item by the total number of garments imported, to simplify procedures.
4. Corresponding Policy of the Ministries concerned:
(1) Outline of system
Under this system, in principle, products processed or assembled from raw materials exported from Japan which are imported within one year of the date of export are exempt from paying import duty equivalent to duty paid when the raw materials were exported.
(2) Export procedures
1) When making use of this system, at the time of export of raw materials, all that is required is for customs to confirm the actual volume of the raw materials exported and it is not necessary to calculate the projected volume of raw materials used, by working out the amount of fabric required and so on.
2) Taking the burden on the importer into consideration, when the amount of fabric needed for the same style differs depending on garment size, the amount of duty reduction when finished products are imported is calculated by multiplying average amount of fabric needed by the number of items imported, and it is not necessary to calculate the amount of fabric needed per size.
5. Remarks
The complainant accepted this policy.