CO-OPERATIVE ARRANGEMENTBETWEENTHE CUSTOMS ADMINISTRATION OF JAPANAND THE CUSTOMS AND EXCISE DEPARTMENT OF
HONG KONG, CHINAREGARDING CO-OPERATION AND MUTUAL ADMINISTRATIVEASSISTANCEIN CUSTOMS MATTERS

The Customs Administration of Japan and the Customs and Excise Departmentof Hong Kong, China (hereinafter referred to as “the Customs
Administrations”):
CONSIDERING that offences against Customs laws are prejudicial to theireconomic, commercial, fiscal, social, cultural and security interests;
CONSIDERING the importance of ensuring the accurate assessment ofCustoms duties and other taxes collected at importation or exportationand of ensuring proper enforcement of measures of prohibition,
restriction and control;
HAVING REGARD TO the Note Verbale of Japan issued on 8 January 2008
and the Note Verbale of Hong Kong, China issued on 8 January 2008,
concerning the use of information exchanged between the Customs
Administrations (the Notes Verbales);RECOGNIZING that Customs Administrations play an important role ineconomic development through facilitating the flow of goods and inprotecting society from the threat of transnational organized crime andterrorism;
RECOGNIZING the need for international co-operation in matters related tothe application and enforcement of their Customs laws;
CONVINCED that action against Customs offences can be made more
effective by close co-operation between their Customs Administrations;
HAVING REGARD TO the relevant instruments of the Customs
Co-operation Council, in particular the Recommendation of the Customs
Co-operation Council regarding Mutual Administrative Assistance of 5
December 1953;

HAVING REGARD TO international Conventions containing prohibitions,restrictions and special measures of control in respect of specific goods;Have reached common recognition on that the Customs Administrations will
co-operate as follows:

CHAPTER IDefinitions
Paragraph 1
1.

For the purposes of this Arrangement:

1.1. the term “Customs Administration” means, for Japan, the Ministry ofFinance, and for Hong Kong, China the Customs and Excise Department;
1.2. the term “Customs laws” means the legal and regulatory provisions
concerning the importation, exportation, transshipment, transit, storageand movement of goods, the administration and enforcement of which arespecifically charged to the Customs Administrations, and any regulations
made by the Customs Administrations under their statutory powers;

1.3. the term “Customs offence” means any violation of the Customs laws(including trafficking in illicit drugs, and unlawful importation of firearms
or goods infringing intellectual property rights), and any attempt tocommit any violation of such laws;

1.4. the term “Customs territory” means, in relation to Japan, the territory inwhich the Customs laws of Japan apply, and in relation to Hong Kong,
China, the area in which the Customs laws of Hong Kong, China apply;21.5. the term “person” means any natural persons, legal persons, or otherentities without a legal personality;

1.6. the term “information” means any data, documents, reports or othercommunications including information that has been processed and/or
analysed to provide an indication relevant to a Customs offence;

1.7. the term “requesting Administration” means the Customs Administration
which requests assistance;

1.8. the term “requested Administration” means the Customs Administrationfrom which assistance is requested;

1.9. the term “international trade supply chain” means all processes involvedin the cross-border movement of goods from the place of origin to theplace of final destination.

3CHAPTER II
Scope of the Arrangement
Paragraph 2

2.1. The Customs Administrations will afford each other administrative
assistance under the terms set out in this Arrangement, for the proper
application of Customs laws and for the prevention, investigation andcombating of Customs offences and to ensure the security of theinternational trade supply chain.

2.2. The Customs Administrations will make co-operative efforts for
simplification and harmonization of their Customs procedures.

2.3. All assistance under this Arrangement by either Customs Administration
will be performed subject to its domestic laws and regulations and within
the limits of its competence and available resources.

2.4. The provisions of this Arrangement will:(a) not be construed as creating any legal rights or obligations of either
Customs Administration; and(b) not affect the rights and obligations of Japan or Hong Kong, China
under any other international agreement or convention.
2.5. This Arrangement is intended solely for the mutual administrative
assistance between the Customs Administrations; the provisions of thisArrangement will not give rise to a right on the part of any private person
to obtain, suppress or exclude any evidence or to impede the execution ofa request.
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CHAPTER III
Scope of AssistanceParagraph 3

3.1. The Customs Administrations will provide each other, either on request oron their own initiative, with information which helps to ensure proper
application of Customs laws and the prevention, investigation andcombating of Customs offences.

3.2. The Customs Administrations will take all reasonable measures to executethe request for assistance made under this Arrangement.

3.3. On request, the requested Administration will provide the requesting
Administration with all information about the Customs laws andprocedures, applicable in that Customs Administration and relevant toinquiries relating to a Customs offence.

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CHAPTER IV
Special Instances of AssistanceParagraph 4

4.

On request, the requested Administration will in particular provide therequesting Administration with the following information:(a) whether goods which are imported into the Customs territory of therequesting Administration have been lawfully exported from theCustoms territory of the requested Administration;(b) whether goods which are exported from the Customs territory of therequesting Administration have been lawfully imported into theCustoms territory of the requested Administration and about theCustoms procedure, if any, under which the goods have been placed.

Paragraph 55.

On request, the requested Administration will provide information on, andmaintain special surveillance over:(a) persons known or suspected of having contravened Customs laws of
the requesting Administration, including known or suspectedoccasional or habitual contraveners of Customs laws of therequesting Administration, particularly those moving into and out of
the Customs territory of the requested Administration;

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(b) goods either in transport or in storage notified by the requesting
Administration as giving rise to known or suspected illicit traffic
towards the Customs territory of the requesting Administration;(c) means of transport known or suspected by the requesting
Administration of being used to commit Customs offences in theCustoms territory of the requesting Administration;(d) premises, in the Customs territory of the requested Administration,known or suspected by the requesting Administration of being used
to commit Customs offences in the Customs territory of therequesting Administration.

Paragraph 6

6.1. The Customs Administrations will provide each other, either on request oron their own initiative, with information on transactions, completed orplanned, which constitute or appear to constitute a Customs offence in theCustoms territory of the other Customs Administration.

6.2. In serious cases that could involve substantial damage to the economy,
public health, public security or any other essential interests of theCustoms territory of a Customs Administration, the other Customs
Administration will, wherever possible, supply information on its own
initiative.

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CHAPTER VInformation

Paragraph 7

7.1. The information exchanged under this Arrangement may be replaced bycomputerised information produced in any form for the same purpose,
where applicable.

7.2. Any information to be exchanged under this Arrangement will beaccompanied by all relevant information for interpreting or utilizing it.

8CHAPTER VI
Communication of Requests

Paragraph 88.1. Assistance under this Arrangement will be exchanged directly between
the Customs Administrations.

8.2. Requests for assistance under this Arrangement will be made in writing in
English and will be accompanied by any documents deemed useful.
When the circumstances so require, requests may also be made verbally.
Such requests will be promptly confirmed in writing.

8.3. A request will include the following information:(a) the identity of the authority making the request;(b) the nature of the proceedings in respect of which the request ismade;(c) the subject of and the reason for the request;(d) the names and addresses of the person to whom the request relates, ifknown; and(e) a brief description of the matter and the legal issues involved.

8.4. A request by either Customs Administration that a certain procedure befollowed will be complied with, subject to the domestic laws andregulations of the requested Administration.
98.5. Communication between Customs Administrations referred to in thisArrangement will be made to officials who are specially designated forthis purpose by each Customs Administration and specified in the Annex.
Any changes to the contact details in the Annex may be notified by one
Customs Administration to the other in writing from time to time.

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CHAPTER VII
Execution of Requests

Paragraph 99.

If the requested Administration does not have the information requested, it
will in accordance with its domestic laws and regulations either:(a) initiate inquiries to obtain that information; or(b) promptly transmit the request to the appropriate agency; or(c) indicate which relevant authorities are concerned.

11CHAPTER VIII
Use and Confidentiality of Information

Paragraph 10

10.1. Any information received under this Arrangement will be used solely forthe purposes of this Arrangement and by the Customs Administrations,
except in cases in which the Customs Administration furnishing suchinformation has approved in writing its use for other purposes or by otherauthorities.

10.2. Any information received under this Arrangement will be treated asconfidential by the receiving Administration and will at least be subject tothe same protection and confidentiality as the same kind of information issubject to under its domestic laws and regulations.

10.3. The requesting Administration will not use information obtained under
this Arrangement for purposes other than those stated in the request
without the prior consent of the requested Administration.
10.4. In addition to paragraphs 10.1. to 10.3. above, the two Customs
Administrations will, as regards information exchanged between the twoCustoms Administrations pursuant to this Arrangement, comply with theterms of the Notes Verbales. Each Customs Administration may limit
the information it communicates to the other Customs Administration
when the latter Customs Administration indicates that it is unable tocomply with the terms of paragraph 10 of this Arrangement, or the Notes
Verbales, or is otherwise unable to give the assurance requested by theformer Customs Administration with respect to confidentiality.

12CHAPTER IX
Exemptions

Paragraph 1111.1. In case where assistance under this Arrangement would infringe upon thesecurity, law and order or other essential interests of the Customs territoryof a Customs Administration, or would involve a violation of industrial,commercial or professional secrecy or would be inconsistent with its
domestic laws and regulations, assistance may be refused.

11.2. If the requesting Administration would be unable to comply if a similar
request were made by the requested Administration, it will draw theattention of the requested Administration to that fact in its request.
Compliance with such a request will be at the discretion of the requested
Administration.

11.3. Assistance may be postponed or withheld by the requested Administrationon the grounds that it will interfere with an ongoing investigation,
including investigation by the relevant law enforcement agencies,
prosecution or proceedings. In such a case, the requested Administration
will consult with the requesting Administration to determine if assistancecan be given subject to such terms or conditions as the requested
Administration may require.

11.4. Where assistance is denied or postponed, reasons for the denial orpostponement will be given.

13CHAPTER X
Customs Co-operation

Paragraph 1212.1. Either Customs Administration will communicate, either on request or on
its own initiative, any available information relating to:(a) new Customs law enforcement techniques having proved theireffectiveness;(b) new trends, means or methods of committing Customs offences.

12.2. In order to promote further co-operation and mutual understanding, eachCustoms Administration may provide opportunities for such officials of
the other Customs Administration as may be selected by the latter to be
attached as its trainees or experts.

The costs incurred in suchattachments will be borne by the sending Customs Administration.

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CHAPTER XI
Costs

Paragraph 13

13.1.Unless otherwise provided in this Arrangement, each Customs
Administration will bear its own costs and expenses incurred in theimplementation of this Arrangement.

13.2. If expenses of a substantial and extraordinary nature are or will berequired to execute the request, the Customs Administrations will consult
to determine the terms and conditions under which the request will beexecuted as well as the manner in which the costs will be borne.

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CHAPTER XII
Implementation of the Arrangement

Paragraph 14

14.1. The Customs Administrations will take measures so that their officials
responsible for the investigation or combating of Customs offences
maintain personal and direct relations with each other.

14.2. The Customs Administrations will endeavour to resolve by mutual accord
any problem or doubt arising from the interpretation or application of thisArrangement.

14.3. The Customs Administrations will meet as and when necessary in order todiscuss issues relating to this Arrangement.

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CHAPTER XIII
Application

Paragraph 15

15. This Arrangement will be applicable to the Customs territories of bothCustoms Administrations.

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CHAPTER XIV
Commencement, Modification and Termination

Paragraph 16

16.1. Co-operation under this Arrangement will commence upon the signatureof this Arrangement by the Customs Administrations.

16.2. This Arrangement may be modified by the mutual consent of the Customs
Administrations.

16.3. Co-operation under this Arrangement will cease three months after thereceipt of a written notice of termination by either Customs
Administration. Requests received before the time of termination will
nonetheless be completed in accordance with the provisions of thisArrangement.

Signed, in duplicate, at Hong Kong on the 8th day of January 2008, in the
English language.

FOR THE CUSTOMS AND

FOR THE CUSTOMSEXCISE DEPARTMENT OFADMINISTRATION OF JAPANHONG KONG, CHINA18