| TOP |
| 7th Report of Market Access Ombudsman Council (March 18, 2002) |
1. Complainant: Tokyo Chamber of Commerce and Industry
2. Ministry concerned: Ministry of Agriculture, Forestry and Fisheries
3. Complaint:
Due to the government policy of tying in corn-starch corn with domestic potato starch, we are compelled to use relatively expensive corn starch.
This system is difficult to understand for importers and consumers. Its legal grounds, framework and specific employment policy are uncertain and vague.
Therefore, the Ministry of Agriculture, Forestry and Fisheries should explain the legal grounds and specific employment policy of the system to importers. To be more specific, the ministry should tie in domestic potato starch not only with corn-starch corn but also with all imported corn, including corn for feed and industrial use.
4. Corresponding Policy of the Ministries concerned:
The system of tying in corn-starch corn and domestic potato starch is designed to provide low-priced imports users on one hand and to secure demand for domestic potato starch and stabilize income of domestic potato starch producers by stabilizing starch supply and demand on the other. It allots duty-free corn-starch corn to users on condition that they take delivery of domestic potato starch. (If a user pays a certain amount of duty (50% or 12 yen per kilogram, whichever is higher), he is not obliged to take delivery of domestic potato starch and can import corn-starch corn freely.)
The tariff allocations for corn-starch corn are set based on the Customs Tariff Law (Article 9-2), the Temporary Tariff Measures Law (Article 8-6), and the Cabinet Ordinance concerning Tariff Allocation System, and the purchase amounts of domestic potato starch are based on the Ministerial Ordinance concerning Tariff Allocation System for Corn, etc. (Article 6). They are published in the gazette of the Ministry of Economy, Trade and Industry, JETROdaily, and the website of the Ministry of Agriculture, Forestry and Fisheries.
Under this system, the ministry is striving to lower the production cost of domestic potato starch through integration and rationalization of domestic potato starch plants, while giving due consideration to users and consumers who bear the costs of supporting domestic corn starch prices. The ministry will continue to strive for proper operation of the system, while keeping a close watch on the trend of starch supply-demand on the domestic market.
The ministry believes that it is not appropriate to include imported corn for feed or industrial use (corn grits, corn flour, etc.) in the tie-in system because they are not used for starch.
5. Remarks
The complainant accepted this policy.