notification of preferential rules of origin for
least developed countries

Japan

Addendum

The following communication, dated 28 February 2025, is being circulated at the request of the delegation of Japan.

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The information below complements the information notified under item III.2 of _G/RO/LDC/N/JPN/1/Rev.1. All information is a provisional translation; please refer to it for reference.

"Consignment Criteria" for the Application of Preferential Tariff Rates

·_              "Consignment Criteria" refers to the criteria used to determine whether or not products eligible for preferential tariff rates retain their origin status throughout transport and until the products arrive in the importing country.

·_              When importing products into Japan via a third country and claiming preferential tariff rates to be applied for the products, documents demonstrating compliance with the "Consignment Criteria" must be submitted at the time of import declaration unless the total amount of the customs value of the product is not more than JPY 200,000.

1  Conditions to Fulfill the "Consignment Criteria"

In order to benefit from preferential tariff rates under the Generalized System of Preferences (GSP), one of the following conditions must be fulfilled:

(a)_            The products are transported directly to Japan from a country of origin, without passing through a third country.

(b)_            If the products pass through a third country (*1), no handling other than transshipment and temporary storage is carried out (*2).

*1: Regarding the GSP, if the products pass through a third country, such passing through a third country is generally limited to cases where it is necessitated by transport reasons. Specifically, "transport reasons" refers to, but is not limited to, cases where the country of origin is landlocked, making direct transport to Japan impractical, and the products have no choice but to pass through a third country.

*2: Regarding the GSP, such transshipment and temporary storage must be carried out under the control of the customs administration of the third country concerned.

2  Documents to Demonstrate Compliance with the "Consignment Criteria"

As regards the documents required to demonstrate compliance with the "Consignment Criteria", one of the following documents must be submitted to customs at the time of import declaration (unless the total amount of the customs value of the product is not more than JPY 200,000):

(1)_          A copy of a through bill of lading for the transportation of such products from the country of origin to the port of importation in Japan.

(2)_          A certificate issued by the customs or any other competent governmental authority in a third country where the products have been transhipped, temporarily stored or displayed at exhibitions, etc.

(3)_          If neither (1) nor (2) is available for justifiable reasons, alternative documents demonstrating that no operation other than transshipment and temporary storage has been carried out in the third country under the control of the customs administration of the relevant third country.

FAQs on the "Consignment Criteria"

Q1: Regarding the documents demonstrating compliance with the "Consignment Criteria", no through bill of lading is issued due to the transport contract, and the customs administration in the transit country does not issue a certificate of non-manipulation. If it is confirmed that no handling other than transshipment was carried out, what kind of documents can be submitted to demonstrate compliance with the "Consignment Criteria"?

A1: In such cases where a copy of through bill of lading or a certificate of non-manipulation cannot be submitted, the following documents may be considered as a set of alternative documents:

(1)_          A document relating to transport arrangements (e.g., bills of lading) showing the flow of products from the country of origin, through the third country to Japan and verifying the identity of the products

(2)_          A certificate of non-manipulation from the warehouse manager or other responsible party in the third country demonstrating that no handling other than transshipment and temporary storage was carried out

(3)_          Records of entry into and exit from bonded areas under the control of the customs administration of the third country concerned

The specific necessary documents required may vary on a case-by-case basis. Consultation with the Origin Administration Division of the Regional Customs is recommended. The Advance Ruling is also available.

Where the submission of the above documents is deemed impractical, a certificate of origin issued by a competent authority stating the transshipment point, etc. may also be acceptable if no operations other than transshipment and temporary storage have taken place under the control of the customs authorities of the third country. However, if it is found that the operation went beyond transshipment and temporary storage under the control of the customs administration of the third country (*3), the application of preferential tariff rates may be denied.

*3: please refer to *2.

Q2: What constitutes the case where "the submission of the documents is deemed impractical" as mentioned in A1?

A2: This refers to situations where the documents to demonstrate compliance with the "Consignment Criteria" is not readily available under normal trade transactions.

※Original Website (Japanese Only):

https://www.customs.go.jp/roo/2_leaflet_tokukei_sekisou.pdf

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