G/VAL/N/1/JPN/2  
 
20 September 2013  
(13-5001)  Page: 1/9  
Committee on Customs Valuation  Original: English  
 
NOTIFICATIONS UNDER ARTICLE 22.2 OF THE AGREEMENT 
ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
JAPAN 
 
The following submission, dated 6 September 2013,  is being circulated at the request of the 
Delegation of Japan. 
   
_______________ 
  
 
Pursuant to the paragraph 2 of Article 22 of the Ag reement on Implementation  of Article VII of the 
General Agreement on Tariffs and Trade 1994, the Government of Japan is pleased to notify the 
amendments to Customs Tariff La w and Cabinet Order for Enforcement of Customs Tariff Law of 
Japan in part where it concerns customs valuation.  
The amendments are attached in English and should be considered as an unofficial translation of 
the original document. The amendments took effect on 1 April 2013.  
For the sake of clarity, the track changes from Ja pan's previous provisions which were circulated 
on 4 November 1981 (VAL/2/Rev.1/Add.8) and on 22 November 1995 (G/VAL/N/1/JPN/1) respectively are shown in the attached documents.  
 
 
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JAPAN 
I. Customs Tariff Law 
(Provisional Translation) 
(Principle for Determining the Customs Value) 
Article 4 1. The value for customs purposes of imported goods (hereinafter referred to as "customs 
value") shall, except where the first sentence of paragraph 2 applies, be the price actually paid or 
payable by the buyer to or for the benefit of the seller for the imported goods in the import transaction (excluding the buyer who does not have  its domicile, residence, principal 
office, branch office, other offices, place of business or other equivalent places; the 
same to apply hereinafter)  relating to the goods (excluding the amounts of customs duty or any 
other charges reduced or refunded in the country of  exportation at the time of their exportation), 
plus the cost of transport, etc., as enumerated below, to the extent that they are not included in G/VAL/N/1/JPN/2 
 
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  the price actually paid or payable for the goods (hereinafter referred to as the "transaction 
value"): 
(1)    (No change) 
(2)   (No change) 
(a) brokerage and commissions, except commissions for the services of the 
purchase of the imported goods paid to a person who acts as an agent on behalf of the buyer  buying commissions; 
(b)    (No change) 
(c)    (No change) 
(3)    (No change) 
(4)    the value of the use of patent, design or trade mark right and such similar rights as may be 
prescribed by a Cabinet Order (excluding the right to reproduce the imported goods in 
Japan), related to the imported goods, that the buyer must pay, directly or indirectly, for as 
a condition of the import transaction relating to the imported goods in the light of a 
condition of such a transaction an d other circumstances surrounding it ; and 
(5)    (No change) 
2.   (No change) 
(1)    (No change) 
(2)    (No change) (3)    (No change) (4)    when the buyer and seller are related (i.e. when they are officers or directors of one 
another's businesses or when there is such relationship between them  the buyer and seller 
as may be prescribed by a Cabinet Order; the same to apply hereinafter in this sub-
paragraph and in paragraph 1 of Article 4-3) and the relationship is considered to have 
influenced the transaction value of the imported goods. 
Provided, however, that the first sentence of this paragraph shall not apply to cases which come 
under sub-paragraph (4) above but in which the importer of the imported goods demonstrates, in 
accordance with the provisions of a Cabinet Orde r, that the transaction value of the imported 
goods is the same as, or closely approximates to, the customs value of identical or similar goods (exported to Japan on or about the same date as the imported goods and produced in the country of production of the imported goods; the same to apply hereinafter in this paragraph), calculated 
in accordance with the provisions of the preceding paragraph or Article 4-3 ( Determination of 
Customs Value on the Basis of Domestic  Selling Price or Cost of Production),  with 
appropriate adjustment made, in accordance with the provisions of a Cabinet Order), to take 
account of price difference between the imported goods and the identical or similar goods arising from differences in commercial level, quantity or cost of transport, etc., as enumerated in any of the sub-paragraphs of the said paragraph, and su ch other costs and charges as may be prescribed 
by a Cabinet Order. Where the customs value is calculated under the provisions of the said 
paragraph, there shall be used the customs value of goods identical or similar to the imported goods in an import transaction between a buyer and seller who are not related in terms of the provision of sub-paragraph (4). 
3.  When a person entrusted (hereinafter in this paragraph referred to as "entrustee") 
by a person in Japan (hereinafter in this pa ragraph referred to as "entruster") processes 
or assembles (hereinafter in this paragraph referred to as "processing, etc.") raw 
materials or other materials prov ided, directly or indirectly, by the entruster, and, based 
on the transaction between the entruster and the entrustee, in which the entruster will 
acquire the products produced through the proc essing, etc., when the products arrive in 
Japan, the two preceding sub-paragraphs sha ll be applied, under which the transaction 
shall be deemed as the import transaction, the entruster shall be deemed as the buyer, the entrustee shall be deemed as the seller, and the price actually paid or payable for 
the processing, etc. shall be deemed as th e price actually paid or payable for the 
imported goods.  In this case, "brokerage and commissions, except commissions for the 
services of the purchase of th e imported goods paid to a per son who acts as an agent on G/VAL/N/1/JPN/2 
 
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  behalf of the buyer" in (a) of sub-paragrap h (2) of paragraph 1 shall be deemed to be 
replaced with "commissions." 
Article 4-2 (No Change) 
(Determination of Customs Value on the Basis of  
Domestic Selling Price or Cost of Production) 
Article 4-3 
1.    When the customs value of the imported goods cannot be calculated under the provisions of 
the preceding two Articles and if there is available a domestic selling price of the imported goods (including the domestic selling price of the impo rted goods where they have been delivered from 
the Customs with the approval of the Director -General of Customs under the provisions of 
paragraph 1 of Article 73 (Delivery of goods prior to import permit) of the Customs Law; the same 
to apply hereinafter in this paragraph) or a domestic selling price of goods identical or similar to the imported goods (produced in  the country of production of the imported goods; the same to 
apply hereinafter in this paragraph), the customs va lue of the imported goods shall be the price as 
prescribed in any of the following sub-paragraphs.  (Provided, however, that sub-paragraph (2) shall apply only when sub-paragraph (1) canno t be applied and the importer of the imported 
goods requests application of the provision of sub-paragraph (2)) to the Director-General of 
Customs:  
(1)    if there is available the domestic selling price of the imported goods or of identical or similar 
goods, sold domestically to persons who are not related to the persons from whom they buy 
such goods, the same in nature and condition as those goods at the time of the import 
declaration (or at the time as prescribed in any of the sub-paragraphs of Article 4 ( Date 
Exceptional date of determination of object fo r duty assessment) of the Customs Law, in the 
case of the goods as enumerated in any of those sub-paragraphs; hereinafter in this sub-
paragraph and in the next sub-paragraph referred to as "the date of determination of object for duty assessment") on or about the date of determination of object for duty assessment 
with regard to the imported goods, the custom s value shall be such domestic selling price, 
subject to deductions for the following commissions, etc.: 
(a) (No change) 
(b) (No change) 
(c) the customs duties and other charges paid  in Japan on the imported goods or the 
identical or similar goods sold in the domestic market; 
(2)    (No change) 
2.    When the customs value of the imported goods cannot be calculated under the provisions of 
the preceding paragraph and if the cost of prod uction of the imported goods can be confirmed 
(provided that the imported goods arrive in Japan based on the transaction of the 
imported goods between the person who inte nds to import the imported goods and the 
producer of the imported goods; the same to apply hereinafter in the next paragraph) , , 
the customs value of the imported goods shall cons ist of the cost of production of the imported 
goods, usual profit and general expenses in connection with sales for export to Japan of imported 
goods of the same class or kind produced in the country of production of the imported goods, and 
cost of transport, etc., of the imported goods to the port of importation. 
3.   When the cost of production of the imported goods can be confirmed and if the importer of 
the imported goods so requests to the  Director-General of Customs , the customs value of the 
imported goods shall be calculated under the prov isions of the preceding paragraph, prior to the 
application of paragraph 1 above. 
Article 4-4 
(No Change) G/VAL/N/1/JPN/2 
 
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  (Determination of Customs Value of Imported  
Goods Deteriorated or Damaged) 
Article 4-5 When the customs value is to be calculated under the provisions of Articles 4 to 4-4 and if it is 
found that the imported goods have deteriorated or are damaged, in the light of the terms and 
conditions of the import transaction a condition of the transaction of the imported goods and 
other circumstances surrounding it , by the time of import declaration (or, by the time as 
prescribed in sub-paragraphs (2) to (8) of Article 4 (Exceptional date of determination of object for 
duty assessment) of the Customs Law, in the case  of the goods as enumerated in any of those 
sub-paragraphs; hereinafter in the proviso to paragraph 1 of Article 10 referred to as "the time of import declaration, etc."), the customs value of  the imported goods shall be the customs value 
calculated as if such deterioration or damage had not occurred, subject to deductions for an 
amount equivalent to the depreciation caused by such deterioration or damage. 
Articles 4-6 and 4-7 
(No Change) 
(Documents, etc. for the Calc ulation of Customs Value) 
Article 4-8 
When the customs value is to be calculated und er the provisions of Articles 4 to 4-7, the 
value and other matters to be used as the ba sis for the calculation shall be verified by 
documents providing reasonable grounds an d be calculated in accordance with 
accounting practices that are generally accepted as fair and appropriate. 
(Mandate to Cabinet Order) 
Article 4- 98 
(No change) G/VAL/N/1/JPN/2 
 
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  II. Cabinet Order for Enforcement of Customs Tariff Law 
(Provisional Translation) 
(Price Actually Paid or Payable for the Imported Goods) 
Article 1-4 
(No change) 
(1) charges for services for construction, erection, assembly, maintenance or technical 
assistance, undertaken on the imported goods after the date of the import declaration for the 
imported goods (or, in the case of the goods as enumerated in any of the sub-paragraphs of 
Article 4 (Exceptional date of determination of object for duty assessment) of the Customs Law, 
such time as provided for in any of those sub-paragraphs; in paragraph 1 of Article 1- 1110 
referred to as "the date of determinat ion of object for duty assessment"); 
(2) (No change) 
(3) customs duties and any other charges levied on the imported goods in Japan; (4) interest for deferred payment for the imported goods, where the import transaction (as 
provided for in paragraph 1 of Article 4 (imp ort transaction) of the Law; the same to 
apply hereinafter)  is subject to deferred payment. 
(Cost of Transport, etc., to be Included in the Customs Value) 
Article 1-5 
1. The "cost of transport, etc., to the port of importation" as provided for in sub-paragraph (1) 
(Cost of transport, etc., to the port of importation) of paragraph 1  of Article 4 ( Principle for 
Determining the Customs Value)  of the Law, shall, when actual cost of transport, etc., for the 
imported goods to the port of importation considerably exceeds the cost of transport, etc., for the 
imported goods to the port of importation usually required to be paid , owing to the fact that the 
imported goods (excluding goods coming under the goods as provided for in paragraph 1 of 
Article 4-6 (Special rule for determination of customs value of air cargo, etc.) of the Law) are 
transported under unusual circumstances, be the cost of transport, etc., to the port of importation 
usually required to be paid. 
2. The value of the goods enumerated in (a), (b) and (c) of sub-paragraph (3) of 
paragraph 1 of Article 4 of the Law shall be the value determined by the categories of 
goods respectively enumerated therein, and be  obtained by adding expenses specified in 
the following sub-paragraphs and the cost of transport, the cost of insurance and other 
expenses incurred by the buyer for the provis ion of the said goods (in case where the 
said goods are also incorporated in the goods other than the imported goods, used in the production of the goods other than the impo rted goods or consumed in the process of 
the production of the goods other than the im ported goods, the value shall be prorated 
in proportion to the degree of the use of the said goods incorpor ated in the imported 
goods, used for the production of the import ed goods or consumed in the process of the 
production of the imported goods).   
In this case, if there is either an incr ease in value as a result of processing, 
improvement or any other act ai med at adding value, or a decrease in value because of 
depletion by use, or transformation or for any other unavoidable reason (in case of the 
goods enumerated in sub-paragraph (1) it shall be limited to the increase in value or the 
decrease in value incurred be fore the provision by the buyer in connection with the 
production of the imported goods and import transaction after the production of the said 
goods, and in case of the goods enumerated in  sub-paragraph (2), it shall be limited to 
the increase in value or the decrease in value incurred befo re the provision by the buyer 
in connection with the production of the im ported goods and import transaction after 
the acquisition of the said goods by the buyer), the amount corresponding to the G/VAL/N/1/JPN/2 
 
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  increase in value or decrease in value sha ll be added or deducted.  (1) Where the goods 
are produced by the buyer itself or the go ods are produced by a person who has the 
relationship (as provided for in sub-pa ragraph (4) of paragraph 2 of Article 4 
(relationship) of the Law: the same to apply hereinafter in sub-paragraph (1) of 
paragraph 4 and paragraph 1 of the next Arti cle) and the buyer directly acquires the 
goods from the person, the expenses for the production of the said goods.  
(2)  In case of the goods that are not enumerated in the previous sub-paragraph, the 
expenses normally required for the acquis ition of the said goods by the buyer. 
32.   "The services necessary for the production of the imported goods as may be prescribed by a 
Cabinet Order "under the provision of (d) of sub- paragraph (3) of paragraph 1 of Article 4 (Value 
of services to be included in the customs valu e) of the Law shall be engineering, plans and 
sketches, development, artwork and design wo rk, undertaken elsewhere than in Japan. 
4.   The value of the services enumerated in  (d) of sub-paragraph (3) of paragraph 1 of 
Article 4 of the Law shall be the value de termined by the categories of services 
respectively enumerated in the following su b-paragraphs and be obtained by adding 
expenses as specified therein and the cost of  transport, the cost of insurance and other 
expenses incurred by the buyer for the provisio n of the said services (in cases where the 
said services are also used in the producti on of the goods other than the imported 
goods, the value shall be prorated in propor tion to the degree of the use of the said 
services used in the imported goods).  In this case, if there is either an increase in value 
by improvement or any other act aimed at addi ng value, or a decrease in value because 
of obsolescence or any other unavoidable reason  (in case of the services enumerated in 
sub-paragraph (1), it shall be limited to the increase in value or the decrease in value 
incurred before the provision by the buyer in connection with the production of the 
imported goods after the undertaking of the said services, and in case of the goods 
enumerated in sub-paragraph (2), it shall be  limited to the increase in value or the 
decrease in value incurred be fore the provision by the buyer in connection with the 
production of the imported goods after the pr ovision of the said services to the buyer), 
the amount corresponding to the increase in va lue or decrease in value shall be added or 
deducted.  
(1)  Where the services are undertaken by  the buyer itself or the services are 
undertaken by a person who has the relati onship and directly provided to the 
buyer from the person, the expenses for the undertaking of the said services.  
(2)  In case of the services that are not e numerated in the previous sub-paragraph, the 
expenses normally required for the provisio n of the said services from the buyer.  
53.   The rights similar to patent, design and tr ade mark right as may be prescribed by a Cabinet 
Order under sub-paragraph (4) of paragraph 1 of Ar ticle 4 (The value of the use of patent right, 
etc., to, be included in the customs value) of the Law shall be the right of utility model, copyright 
and neighbouring rights and a production method based on special techniques, etc., for which 
royalties or license fees must be paid. 
(Adjustment to Take Account of Price Difference when it is to be Demonstrated that the 
Transaction Value of the Imported Goods was not Influenced by Relationship and Procedure for 
Such Demonstration) 
Article 1-6 
1. "Such other costs and charges as may be prescribed by a Cabinet Order" under the proviso 
to paragraph 2 of Article 4 ( Principle for Determining the Customs Value)  Demonstration that 
the transaction value of the imported goods was not influenced by relationship) of the Law shall be 
costs and charges, other than cost of transport, etc., as enumerated in any of the sub-paragraphs 
of paragraph 1 of the said Article , (Cost of transport, etc., to be included in the customs value), 
that are incurred by a seller in an import tran saction in which he and the buyer are not related , (in 
terms of sub-paragraph (4) of paragraph 2 of the said Article (Relationship); the same to apply G/VAL/N/1/JPN/2 
 
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  hereinafter), but that are not incurred, wholly or partially, by the seller who is related to the 
buyer. 
2. (No change)  3. (No change)  
Article 1-7 
(No Change) 
(Scope of Relationship) 
Article 1-8 
"Such relationship between them  the buyer and seller as may be prescribed by a Cabinet Order" 
under sub-paragraph (4) of paragraph 2 of Article 4 ( Principle for Determining the Customs 
Value  Relationship between the buyer and seller) of the Law shall be a relationship between one 
the buyer and the other  seller which comes under any of  the following sub-paragraphs: 
(1)    when they the buyer and seller are legally recognized partners in business; 
(2)    when either one of them  the buyer of the seller is the employer of the other; 
(3)    when either one of them  the buyer or the seller directly or indirectly owns, controls or 
holds 5 per cent or more of the outstanding voting stock or shares of the other; 
(4)    when either one of them  the buyer or the seller directly or indirectly controls the other 
(excluding a case coming under the preceding sub-paragraph); 
(5)    when any third party directly or indirectly owns, controls or holds 5 per cent or more of the 
outstanding voting stock or shares of both of them  the buyer and seller; 
(6)    when they the buyer or the seller are directly or indirectly controlled by a third person 
(excluding a case coming under the preceding sub-paragraph); 
(7)    when they together the buyer and seller directly or indirectly control a third person; 
(8)    when they the buyer and seller are members of the same family. 
(Application of Articles 1-4 to the Preced ing One in the Case as Provided for in 
Paragraph 3 of Article 4 of the Law) 
Article 1-9 
In the case provided for in paragraph 3 of Article 4 (Principle for Determining the 
Customs Value), Articles 1-4 to the preceding one shall be applied under which the transaction as provided for in the paragraph shall be deemed as the import transaction, 
the entruster as provided for in the paragraph shall be deemed as the buyer, the 
entrustee as provided for in the paragraph shall be deemed as the seller, and the price 
actually paid or payable for the processing, et c. as provided for in the paragraph shall be 
deemed as the price actually paid or payable for the imported goods. 
(Priority of the Transaction Value of Goods Produced  
by the Same Producer, etc.) 
Article 1-10 9 
(No change) 
(Domestic Selling Price of the Imported Goods, etc.) 
Article 1- 1110 
(No change) 
(Determination of Customs Value of Special Imported Goods) G/VAL/N/1/JPN/2 
 
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  Article 1- 1211 
(No change) 
(1)  Where customs value cannot be calculated  by the calculation methods as provided 
for in Articles 4 to 4-3 of the Law (Pri nciple for Determinin g the Customs Value, 
Determination of Customs Value on the Basis of  Transaction Value of Identical or Similar 
Goods, and Determination of Customs Value on the Basis of Domestic Selling Price or 
Cost of Production) because certain bases fo r the calculation of the customs value do 
not meet the requirements for the calculation by the aforementioned methods, and 
where reasonable adjustments given to the base s in question would be able to meet the 
requirements, the customs value shall be th e value calculated based on such methods 
with such reasonable adjustments.  
(1) there is available the customs value, calcul ated under the provisions of paragraph 1 of 
Article 4 (Principle for determining the customs value) of the Law or the customs value calculated 
under the provisions of sub-paragraph (1) of para graph 1 of Article 4-3 (Determination of customs 
value on the basis of domestic selling price) of the Law (or, the customs value calculated under the 
provisions of paragraph 1 of Article 4 of the Law, if there are available both values referred to 
above), of goods (produced elsewhere than in Japan) which can demonstrate a price difference 
between such goods and the imported goods arising from differences in quality, function, time of 
exportation and any other circumstance, such customs value, with necessary adjustment made to 
take account of price difference between such goods and the imported goods arising from 
differences in quality, function, time of exportation and any other circumstance, by, for instance, 
multiplying the said customs value by a price-ratio corresponding to differences in quality or 
function which can be seen from the price list of such goods or to the difference in time of 
exportation: 
(2)    (No change) 
(Special Rule for Determination of Customs Value of Air Cargo) Article 1- 1312 
1. (No change) 
2. (No change) (1) (No change) (2) (No change) 
(3) (No change) 
(4)   articles (excluding automobiles, vessels and aircraft) brought into Japan as accompanied 
luggage or imported as unaccompanied luggage through the procedures as prescribed in 
Article 14 by any person entering Japan for a purpose other than removal of his residence to 
Japan which are intended for his personal or professional use (excluding those articles which can be exempted from customs duty under the pr ovisions of sub-paragraph (7) of Article 14 
(Unconditional exemption from customs duty on personal effects) of the Law), the total 
amount of the customs value of which is not more than 200,000 yen, calculated on the basis 
of airfreight and insurance; 
(5) articles (excluding automobiles, vessels and aircraft) brought into Japan as accompanied 
luggage or imported as unaccompanied luggage through the procedures as prescribed in 
Article 14 by any person entering Japan for the purpose of removing his residence to Japan which are intended for the personal or professional use of himself or members of his family 
(excluding those articles which can be exempted from customs duty under the provisions of 
sub-paragraph (8) of Article 14 (Unconditional  exemption from customs duty on household 
effects to be moved) of the Law), the total amount of the customs value of which is not 
more than 200,000 yen, calculated on the basis of airfreight and insurance; G/VAL/N/1/JPN/2 
 
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  (6) goods which, under the terms and conditions of the contract for the imported goods import 
transaction, should have been transported by a mode of transportation other than air, but 
which have actually been transported by air, wi th any expenses incidental to the change in 
the mode of transport being borne by a person other than the importer of the said goods, 
for the reason that their arrival in Japan was, or was likely to be, delayed owing to a delay in 
production of the said goods or any other cause not attributable to the importer of the said goods; 
(7)    (No change) 
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