Trade &Customs
Contributing editor
Gary N Horlick2019© Law Business Research 2018

Trade & Customs 2019
Contributing editor
Gary N Horlick
Law Offices of Gary N Horlick

Reproduced with permission from Law Business Research Ltd
This article was first published in August 2018
For further information please contact editorial@gettingthedealthrough.com

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CONTENTS
Overview5

European Union

Gary N Horlick
Law Offices of Gary N Horlick

Laurent Ruessmann and Jochen Beck
Fieldfisher

Brexit7

India57

Gary N Horlick
Law Offices of Gary N Horlick

Gunjan Mishra, Ashish Chandra, Saurabh Tiwari, Tarun Bhati
and Tanvi Praveen
Luthra & Luthra Law Offices(CP)Trans-Pacific Partnership

9

Gary N Horlick
Law Offices of Gary N Horlick

50

Japan64
Yuko Nihonmatsu, Fumiko Oikawa and Mariko Sanno
Atsumi & Sakai

Trade restrictions and WTO disputes in Ukraine–Russia
trade relations

12

Jordan69

Nataliia Isakhanova and Olesia Kryvetska
Sergii Koziakov & Partners

Baha’a Armouti
Armouti AdvocatesBrazil17

Korea73Renê Guilherme Medrado andLuiz Fernando Dalle Luche Machado
Pinheiro Neto Advogados

Sung Baek Jin, Young Gee Park, Hyun Soo Joo and Steve H Oh
Lee & Ko

Chile24
Ignacio García and Andrés Sotomayor
Porzio Rios Garcia
China28
Steven Yu
Hiways Law Firm
Colombia33
Olga Lucía Salamanca, Luis Ricardo López, Yenny Palacios
and Julián Serrano
Araújo Ibarra International Trade Consultants

Francisco A Gottifredi and Fabian T Pozo
Gottifredi Pozo Law Firm

Edward Borovikov, Bogdan Evtimov, Igor Danilov
and Taras Povorozniuk
Dentons

Lim Koon Huan and Nicholas Lai
Skrine, Advocates & Solicitors
Mexico84
Alexis Michel
SMPS Legal
Turkey89
M Fevzi Toksoy, Bahadır Balkı and Ertuğrul C Canbolat
ACTECON
Ukraine94

Ecuador37

Eurasian Economic Union

Malaysia79

Nataliia Isakhanova, Olesia Kryvetska and Andrii Pylypenko
Sergii Koziakov & Partners
United Arab Emirates

42

104

Jonathan Brown and Raymond Kisswany
Charles Russell Speechlys LLP
United States

107

Yohai Baisburd
Cassidy Levy Kent (USA) LLP

2

Getting the Deal Through – Trade & Customs 2019
© Law Business Research 2018

PREFACE

Preface
Trade & Customs 2019
Seventh edition
Getting the Deal Through is delighted to publish the seventh editionof Trade & Customs, which is available in print, as an e-book, and onlineat www.gettingthedealthrough.com.
Getting the Deal Through provides international expert analysis in
key areas of law, practice and regulation for corporate counsel, crossborder legal practitioners, and company directors and officers.
Throughout this edition, and following the unique Getting the Deal
Through format, the same key questions are answered by leading
practitioners in each of the jurisdictions featured. Our coverage thisyear includes a new chapter on Colombia and a new article on theWorld Trade Organization dispute against Russia.
Getting the Deal Through titles are published annually in print.
Please ensure you are referring to the latest edition or to the online
version at www.gettingthedealthrough.com.
Every effort has been made to cover all matters of concern toreaders. However, specific legal advice should always be sought fromexperienced local advisers.
Getting the Deal Through gratefully acknowledges the efforts of all
the contributors to this volume, who were chosen for their recognised
expertise. We also extend special thanks to the contributing editor,
Gary N Horlick of Law Offices of Gary N Horlick, for his continued
assistance with this volume.

LondonJuly 2018www.gettingthedealthrough.com 3© Law Business Research 2018

JAPAN

Atsumi & Sakai

Japan
Yuko Nihonmatsu, Fumiko Oikawa and Mariko Sanno
Atsumi & Sakai

Overview
1

What is the main domestic legislation as regards trade
remedies?

The main domestic legislation regarding trade remedies is:• the Customs Tariff Act: http://law.e-gov.go.jp/htmldata/M43/
M43HO054.html (Japanese only); and• the Cabinet Order on Anti-Dumping Duties: http://law.e-gov.go.jp/
htmldata/H06/H06SE416.html (Japanese only).
2

In general terms what is your country’s attitude tointernational trade?

Japan became a signatory to the General Agreement on Tariffs andTrade (GATT) in September 1955. Under GATT, Japan gradually liberalised trade and reaped many benefits as a nation from trade liberalisation
generally. This helped Japan achieve the transition from post-Second
World War recovery to industrial development.
Since the 1990s, the network of free trade agreements (FTAs)
around the world has grown significantly. Even in Japan, a nation thathas been a staunch supporter of multilateral trade arrangements under
GATT and WTO, calls for FTAs have increased, and in January 2001,
Japan began negotiating an economic partnership agreement (EPA)
with Singapore, which was concluded in November 2002, becoming
Japan’s first EPA. By June 2016, Japan had EPAs in place with 15 othercountries.
Japan’s EPAs tend to extend beyond customs duties and liberalisation of services to cover investment, government procurement, intellectual property rights, migration and the business environment, and are
aimed at expanding both trade and investment between the countries,
with the more comprehensive EPAs extending to topics not covered
under WTO rules.
As of June 2016, Japan is negotiating EPA/FTAs with eight counterparties, including ASEAN, EU, South Korea and Canada, in addition
to negotiating the TPP and RCEP multilateral agreements. As of June
2015, trade with countries with which Japan has a trade agreement inforce or signed up made up 22.3 per cent of Japan’s total trade; this rises
to 84.6 per cent when including those countries with which Japan is currently negotiating EPAs.

anti-dumping duties upon submission of the necessary documents withadequate evidence to establish the following facts:• name and address or residence of the applicant;• name, brand, product type and characteristics of the goods thathave been dumped;• name of the supplier of the dumped goods and the country of origin;• background to the complainant’s interests in industry in Japan;• outline of the facts regarding the import of the dumped goods,
and the effective damage, etc, that the imports have caused to theindustry in Japan;• if requesting that any of the matters provided in the documents submitted, or all or part of the evidence submitted, be handled in confidence, a statement to this effect, and the reasons for requesting thesame;• the state of support for duties from related producers, etc, or related
labour unions; and• other relevant matters.
The authority responsible for investigating the request will confirm thatthe necessary documents have been submitted that adequately evidence the above matters; once they are satisfied of this, they will begin
investigating whether or not to act on the request. The confirmation
usually takes around two months, and once an investigation starts it will
generally be completed within one year after commencing investigations (and no more than 18 months).
In May 2016, the MoF and METI published guidelines for preparing the documents required when requesting anti-dumping duties:
www.meti.go.jp/policy/external_economy/trade_control/boekikanri/download/trade-remedy/adgl_tebiki2.pdf(Japaneseonly),
as well as examples of the way in which to prepare the documents:
www.customs.go.jp/kaisei/sonota/adgl_annex1.pdf (Japanese only).
5

What is the procedure for foreign exporters to defend a trade
remedies case in your jurisdiction?

The Ministry of Finance (MoF) (www.mof.go.jp/english/index.
htm) and the Ministry of Economy, Trade and Industry (METI)(www.meti.go.jp/english/index.html) are the authorities that conduct
trade defence investigations and enforce the Customs Tariff Act inJapan.

Once a decision has been made to commence an investigation, theMinister of Finance will promptly notify directly interested parties (theimporters, etc, of the goods under investigation) and the party or parties
that requested the investigation in writing, providing the name of thegoods to be investigated and the estimated term of the investigation etc,
and will also announce this publicly in the Official Gazette. For a period
specified by the MoF after the investigation starts, interested parties
may make written representations to the Minister of Finance giving
their opinions regarding the investigation.
The Minister of Finance will also notify directly interested parties
in writing of important facts that form the basis of a final decision onwhether to impose duties or the tariff rate to apply etc (reasons for a
duty, dumping margin etc). In response, directly interested parties may
make counter-arguments in writing within a designated period.

46Trade defence investigations
3

Which authority or authorities conduct trade defence
investigations and impose trade remedies in your jurisdiction?

What is the procedure for domestic industry to start a trade
remedies case in your jurisdiction? Can the regulator start aninvestigation ex officio?

Those with interests in Japanese industry (a domestic producer of foreign goods in the same category as the goods under investigation, or a
producer that produces at least 25 per cent of the total domestic production of those goods) can make a complaint to the Minister of Finance for

Are the WTO rules on trade remedies applied in national law?

Japan is a member of the WTO.
The Customs Tariff Act incorporates into Japanese laws the provisions of article 6 of the General Agreement on Tariffs and Trade (GATT)
Agreement on Implementation of article VI of the General Agreement
on Tariffs and Trade 1994 (the Anti-dumping Agreement).

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What is the appeal procedure for an unfavourable trade
remedies decision? Is appeal available for all decisions? How
likely is an appeal to succeed?

A party subject to a dumping duty (ie, the importer) may appeal to the
Minister of Finance within three months from the day after becoming
aware of the unfavourable trade remedies. If the Minister’s decisionon the appeal is also unfavourable, the party may then take the matterto court to seek to have the trade remedies annulled etc, which must
be done within six months from the day after becoming aware of the
Minister’s decision. If there are valid reasons for doing so, the processof appeal to the Minister may be bypassed, instead going straight to an
appeal to the court. However, generally speaking, it is highly unlikelythat a trade remedy decision could be overturned by such appeal or
court litigation process.
8

How and when can an affected party seek a review of the dutyor quota? What is the procedure and time frame for obtaininga refund of overcharged duties? Can interest be claimed?

Extension of the duty period
Anti-dumping duties can be imposed for a maximum of five years, but
this may be extended if an interested party can submit evidence to the
Minister of Finance (no later than one year before the end of the duty
period) that adequately shows that actual damage would continue to be
incurred, or would be incurred again, as a result of the importation of
the designated goods to which the dumping duty applies or to Japaneseindustry as a result; the Minister of Finance will then investigate theclaim and may extend the dumping duty period for a further period of
up to five years.
Revision, etc, of the duty as a result of changed circumstancesInterested parties may make a request for the revision or abolition of
a dumping duty not less than one year from the start of the designatedperiod of duties with regard to designated goods, if it is accepted, upon
submitting adequate evidence, that the circumstances have changed
regarding (i) dumping of the designated goods, or (ii) the facts of theactual damages, etc, caused to the Japanese industry as a result of theimportation of the designated goods. A determination of whether or
not to revise or abolish the dumping duty generally takes no more than
one year.
Refund of anti-dumping duties
If the amount of the anti-dumping duty paid by the importer of designated goods can be shown to be more than the actual amount of difference that arose through dumping of the designated goods, then theimporter may request a refund of the dumping duty from the Japanese
government upon presenting adequate evidence to support the request.
Instigation of the request may result in either refunding the dumping
duty up to the amount requested, or a rejection if there is insufficientreason for doing so.
9What are the practical strategies for complying with an antidumping/countervailing/safeguard duty or quota?

To date, the Japanese government has only conducted seven antidumping investigations, six of which led to anti-dumping duties being
imposed. This includes two that are currently under provisional measures and those for which the duty period has already been completed.
In the past, Japan had been reticent about using anti-dumping duty
measures, which might have placed Japanese businesses in a difficult
position.
In recent years, there has been an increase in concern over export
dumping conduct globally, as economic growth in developing countries has slowed and industries find themselves with overcapacity, andJapanese companies have begun to take measures to fight dumping.
The Japanese government has streamlined the process for companies
to petition for an anti-dumping investigation, simplified the way inwhich the investigations themselves are conducted, and taken othermeasures to improve the domestic anti-dumping system.

Customs duties
10 Where are normal customs duty rates for your jurisdiction
listed? Is there an exemption for low-value shipments? If so,
at what level? Is there a binding tariff information system orsimilar in place? Are there prior notification requirements forimports?
Based on the principle of no taxation without law, there are specific laws
or treaties that stipulate six main different customs duty rates:• general rate (Customs Tariff Act): a rate that is set from a long-term
perspective based on the state of domestic industry, etc;
• temporary rate (Act on Temporary Measures concerning Customs):
a provisional, flexible rate applied in special circumstances;• generalised system of preferences (GSP) rate (Act on Temporary
Measures concerning Customs): a rate that is applied to imported
goods for which the country of origin is a developing country thathas requested preferential tariffs and Japan has accepted thisrequest (generalised system of preferences beneficiary);• LDC preferences rate (Act on Temporary Measures concerning
Customs): this is a rate that applies specifically to imported goods
for which the country of origin is a preferential beneficiary and thatis also an LDC, in which case the tax rate is zero. The LDC preferences rate (zero tax) will also apply in the case of the importation ofgeneral preferential goods originating from an LDC;
• WTO treaty tariff rate: this is a rate that is agreed (binding rate) as
the maximum duty applicable to imported goods originating froma WTO member country. It also applies to countries with beneficial
customs duty treatment, or countries with most-favoured nation
status under bilateral treaties; and• EPA tariff rate: this is a rate that is set out in specific EPAs between
Japan and certain other countries. Certain duties are reduced oreliminated for goods originating from such countries according toa schedule in the relevant EPA.
The rates described in the list above are set out in the Customs Tariff Act
or other related laws and treaties based on the International Convention
on the Harmonised Commodity Description and Coding System (HSTreaty), and the customs tariff schedule can be found on the Customs
website: www.customs.go.jp/english/tariff/index.htm.
Goods with a total customs value of ¥10,000 or less per parcel orcustoms declaration are exempted from customs duty and consumption
tax, save that:• alcoholic beverages and tobacco (of whatever value) are subject
both to consumption tax and to liquor tax and tobacco tax, respectively; and• the exemptions do not apply to goods such as leather bags, leather
shoes and knitted apparel, as they are considered inappropriate
from the viewpoint of their impact on domestic industries or othercircumstances.
General import freight and international parcels with a total customs
value of not more than ¥200,000 are subject to simplified tariffs, whichsometimes leads to the application of customs rates lower than thegeneral customs rates. For example, cheese subject to simplified tariffs
has a customs rate of 5 per cent, although the general customs rates forcheese are in the range of 22.4–40 per cent.
An importer may make an enquiry with Customs about the tariffclassification (tariff code) and the tariff rate which would be applied
to products that the importer is planning to import, and obtain a written ruling in response, before commencing the importation (AdvanceClassification Ruling System). The tariff classification, tariff rate andstatistical code listed on this Advance Classification Ruling System arethen applied to the import declaration.
11 Where are special tariff rates, such as under free trade
agreements or preferential tariffs, and countries that are given
preference listed?
All tariff rates are set forth in the customs tariff schedule on the website
listed above.
Countries that are given preference under EPAs are listed at:www.customs.go.jp/tokyo/zei/origin/flow/step01.htm.
GSP beneficiaries (countries and territories) are listed at:www.customs.go.jp/english/c-answer_e/imtsukan/1504_e.htm.

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12 How can GSP treatment for a product be obtained or removed?
In order to receive preferential tariff treatment, it is necessary for an
importer to submit a certificate of origin, the GSP (Form A), at the timeof import declaration in principle. This certificate must be issued, atthe time of exportation, by customs authorities or any other officiallyauthorised body, such as a chamber of commerce and industry in the
country of origin, based on the declaration made by the exporter. The
goods must be imported directly to Japan for preferential tariff treatment in principle.
There is also a system whereby preferential tariffs are no longer
available for products that originate from preferential treatment beneficiary countries or regions once the country’s or region’s economy has
developed or achieved a high level of global competitiveness.
Entire graduation
A country or region is excluded from the list of beneficiaries of Japan’s
GSP scheme for all items when the country or region has been continuously classified as a ‘high-income country’ in the World Bank
Statistics, published by the International Bank for Reconstruction andDevelopment, for three years up to the previous year.
Due to an amendment of the Act on Temporary Measures concerning Customs in 2017, the standards of exclusion from the preferential
treatment above require the country or region to fulfil both (i) beingclassified continuously in the World Bank Statistics as an ‘upper-middle-income country’ for three years; and (ii) that the value of exportsof the country is no less than 1 per cent of the total value of worldwide
exports. The new standards will be implemented from April 2019.
Partial graduation
Products originating from a beneficiary country or region are excluded
from preferential treatment when (i) the beneficiary is classified as a‘high-income economy’ in the World Bank Statistics of the previous
year, and (ii) the value of Japan’s imports of the product originatingfrom the beneficiary exceeds ¥1 billion and 25 per cent of the total valueof Japan’s worldwide imports of the product in the trade statistics of
two years ago. The standards of a subject country to (i) above require
the country to be classified as an ‘upper-middle-income country’ in theWorld Bank Statistics, as well as the value of exports being no less than 1
per cent of the total value of worldwide exports, due to the amendmentof the Act in 2017 in accordance with the standards of entire graduation.
The new standards for subject countries have been implemented from
April 2018.
There are also certain countries or certain products originatingfrom the beneficiary countries or regions that are excluded from preferential treatment when certain conditions are met.
13 Is there a duty suspension regime in place? How can duty
suspension be obtained?
Currently, there is no formal duty suspension regime in Japan.
Japan does have a tariff quota system under which a specified quota
of certain products may be imported without tariffs or with low tariffs(primary tariff rate) to meet domestic demand for low-priced imported
products, but once this quota is met, a relatively high tariff (secondary
tariff rate) is applied to further imports in order to protect domestic producers. This tariff quota system differs from the duty suspension regime
in that there is a limit to the number of imported goods.
14 Where can customs decisions be challenged in yourjurisdiction? What are the procedures?
Any person who is not satisfied with a disposition taken by the DirectorGeneral of Customs under the Customs Act or other related laws andregulations may file a protest within three months from the day following the day of the receipt by the petitioner of the notification of a disposition (request for reinvestigation). For a request for reinvestigation,
the Director-General of Customs reviews the validity of the dispositionand notifies the petitioner of the result with a copy of the decision letter.
If the petitioner is still not satisfied with the decision in response toa request for reinvestigation, it may file an appeal with the Minister ofFinance within one month from the day following the day of the delivery of the decision letter. In addition, instead of requesting an investigation, any person who is not satisfied with a disposition taken by the
Director-General of Customs may also directly file an appeal to the

Minister of Finance within three months from the day following the dayof the receipt by the petitioner of the notification of a disposition. These
procedures are called a ‘request for review’. In a request for review, theMinister of Finance reviews and examines the validity of the dispositionand notifies the petitioner of the result with a copy of the written verdict.
If the petitioner is still not satisfied with the decision made by the
Ministry of Finance it may file an appeal to the court within, in principle,
six months from the day of the receipt of the written verdict.
Trade barriers
15 What government office handles complaints from domestic
exporters against foreign trade barriers at the WTO or underother agreements?
The government offices that handle complaints from domestic exporters against foreign trade barriers at the WTO or under other agreements
are METI, the MoF and other ministries responsible for the specificindustry in Japan.
In particular, METI publishes a ‘Report on Compliance by Major
Trading Partners with Trade Agreements – WTO, FTA/EPA and IIA’and ‘METI Priorities Based on the Report’, for the purpose of improving compliance among major trading partners whose trade policies
and trade measures might not be consistent with the internationalrules of the WTO, etc. The Multilateral Trade System Department andOffice for WTO Compliance and Dispute Settlement, Trade Policy
Bureau within METI has a webpage dedicated to dealing with enquiries regarding trade policies and measures of foreign countries that are
faced by companies and business operators. This office will consider
whether the foreign government’s measures are consistent with WTO
and other international rules and provide advice, including, in somecircumstances, assisting with the launch of WTO dispute settlement
procedures.
16 What is the procedure for filing a complaint against a foreign
trade barrier?
The Japanese government takes the approach of using the WTO andother international trade rules to settle disputes regarding international
economic issues. When a company, export cooperative or other interested party is faced with a foreign trade barrier and brings the matterto the attention of the ministry responsible for that particular industry,
the ministry will interview the interested parties to ascertain the facts.
If necessary, the ministry will collaborate with METI and other relevant
ministries to handle the matter consistently from the Japanese government’s perspective, which can include requesting discussions withthe relevant foreign government, and failing a satisfactory outcome
through such negotiations, filing a complaint through dispute resolution
procedures under the WTO or the relevant EPA.
17 What will the authority consider when deciding whether tobegin an investigation?
When a company, export cooperative or other interested party is facedwith a foreign trade barrier and brings the matter to the attention of
METI, the MoF and other Japanese ministries responsible, the Japanese
government will look at the evidence provided and decide whether
to begin an investigation based on whether the foreign government’s
actions are in violation of WTO or other international rules.
18 What measures outside the WTO may the authority
unilaterally take against a foreign trade barrier?
Japan also uses international trade rules outside the WTO to resolve disputes relating to international economic matters.
If the relevant government authority determines that there is a foreign trade barrier that is against an international trade rule, the Japanese
government will conduct bilateral negotiations with the other country
and take other appropriate measures, such as investor–state arbitration(where a bilateral investment treaty or BIT exists) and other EPA/BIT
dispute settlement processes.
19 What support does the government expect from the private
sector to bring a WTO case?
If an industry wishes to bring a WTO case, it must discuss the casewith the relevant government authority in detail. As a part of this66

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consultation process, the industry would be required, at its own cost,to collect data, conduct research and provide necessary information inorder to enable the authority to determine whether or not to begin an
investigation and bring a WTO case.
20 What notable trade barriers other than retaliatory measures
does your country impose on imports?
Under the Customs Act, any person wishing to import goods must
declare them to Customs, obtain an import permit and make paymentof customs duty and excise taxes after necessary examination of goods(Import Declaration).
The Customs Act prohibits the importation of the following goods:• heroin, cocaine, MDMA, opium, cannabis, stimulants, psychotropic substances and other narcotic drugs (excluding those designated by Ministry of Health, Labour and Welfare Ordinance);• firearms (pistols, etc), ammunition (bullets) thereof and pistol
parts;• explosives (dynamite, gunpowder, etc);• precursor materials for chemical weapons;• germs that are likely to be used for bio-terrorism;• counterfeit, altered or imitation coins, paper money, banknotes or
securities, and forged credit cards;• books, drawings, carvings and any other goods which may harm
public safety or morals (obscene or immoral materials, eg,
pornography);• child pornography;• goods which infringe upon intellectual property rights; and• goods which constitute the unfair competition under the Unfair
Competition Prevention Law.
In addition, with respect to import cargos that have an adverse impact
on the economy, industries, sanitation, health, public safety or public
morals, etc, in Japan, the Foreign Exchange and Foreign Trade Act
and other laws and regulations control the import of those cargoes
by requiring permits, approvals, etc, or inspections by administrative
agencies or satisfaction of other conditions on the import of cargoes.
For example, imported plants are required to go through plant quarantine, and the importation of certain plants from specific areas, harmful plants and animals such as insects, mites or bacteria, and soil andplants to which soil is attached is banned unless permission is obtained
for use in testing and research etc (Plant Protection Act). Also, in orderto prevent invasion of domestic animal infectious diseases from overseas, imports of cloven-hoofed animals such as cattle, pigs and sheep,equine animals and fowl are banned unless a certificate of import quarantine is obtained upon inspection by the Animal Quarantine Serviceof the Ministry of Agriculture, Forestry and Fisheries or a permit isobtained from the Minister of Agriculture, Forestry and Fisheries (Acton Domestic Animal Infectious Diseases Control).
To import endangered animals and plants subject to restrictions
under the Convention of International Trade in Endangered Speciesof Wild Fauna and Flora (Convention), it is necessary to obtain an
export permit issued by the government authority as stipulated by
the Convention, as well as an import licence issued by the Ministry of
Economy, Trade and Industry.
Export controls
21 What general controls are imposed on exports?
With regard to exports from Japan, an export declaration, inspection
and permit are required under the Customs Act. An export declaration
requires submission of an export declaration in a prescribed form, an
invoice, a package list and other documents. When an exporter wishes
to export cargo (or technology; hereinafter the same) that requires apermit or approval under laws or regulations other than the Customs
Act, the exporter must be able to prove to customs that these requirements have been met.
22 Which authorities handle the controls?
The Customs and Tariff Bureau of the MoF handles export customs
clearance procedures, although permits and approvals for export ofcertain cargo are governed by other government agencies pursuant to
the laws and regulations that require such permits and approvals. The
most important of these is the Foreign Exchange and Foreign Trade Act

Update and trends
Overview
The multilateral trade agreements that Japan is currently negotiating are the Trans-Pacific Partnership Agreement (the TPP
Agreement) and a Japan–EU Economic Partnership Agreement(EPA).
TPP Agreement
The TPP Agreement is a trade agreement that was initially being
negotiated among 12 countries: Australia, Brunei, Canada, Chile,
Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UnitedStates and Vietnam. The TPP Agreement is an ambitious agreement billed as a high-level, comprehensive and balanced treaty.
Negotiations of the terms of the TPP Agreement were basicallyconcluded in October 2015, but the United States declared its withdrawal from the TPP Agreement in January 2017. In May 2017, the11 countries, excluding the United States, began negotiations on
an agreement as a legal framework to realise the contents of the
TPP Agreement, and following that, final agreement was reached.
The Comprehensive and Progressive Agreement for Trans-PacificPartnership (the CPTPP) was signed by the 11 countries on 8 March2018. The said Agreement, except for some clauses, is an agreement to realise the contents of the TPP Agreement and maintains
the high standards of the TPP Agreement. Cooperation is being
promoted in the 11 countries aiming for the early entry into force of
the CPTPP.
Japan–EU EPA
Since March 2013, Japan had been negotiating with the EU on an
EPA, and in December 2017, the parties reached agreement in eachfield except for a settlement system for investment disputes. The
Japan–EU EPA will contribute to economic growth, including thecreation of jobs and strengthening the competitiveness of companies by promoting trade and investment through the abolition oftariffs and the development of investment rules etc. Japan and theEU will finalise and sign the agreement in 2018, aiming for its entry
into force before spring of 2019.

(Foreign Exchange Act), and METI is the government agency responsible for permits and approvals for export of cargo under the Foreign
Exchange Act.
23 Are separate controls imposed on specific products? Is alicence required to export such products?
For security purposes, the Foreign Exchange Act controls the exportof certain cargo using two methods, namely list control and catch-all
control.
Specific cargo subject to export controls is designated in the Export
Trade Control Order (Export Order) and the Foreign Exchange Order.
List control requires exporters to obtain an export permit from METI if
their export cargo is on the control list and have the specifications set out
in the Ordinance of the Ministry Specifying Goods and Technologies
Pursuant to Provisions of the Appended Table 1 of the Export Control
Order and the Appended Table of the Foreign Exchange Order. Basedon international export control regimes, the said list includes arms andother dual-use equipment that may be used for the development of
weapons of mass destruction.
Catch-all control is a system whereby exporters must obtain apermit from METI for their export cargo other than those included in
the control list (excluding food and timbers etc) if notified by METI to
apply for an export permit (inform requirement) or if it is judged, basedon expected usage and the end user, that such cargo might be used forthe development of weapons of mass destruction.
24 Has your jurisdiction implemented the WCO’s SAFE
Framework of Standards? Does it have an AEO programme orsimilar?
In order to implement the WCO’s SAFE Framework of Standards,
Japan amended the Customs Tariff Act and relevant laws in 2012 to
introduce the advance filing rules, which require shipping companies
to submit information electronically to customs for maritime container
cargo to be loaded on a vessel bound for a port in Japan, in principle, atleast 24 hours before departure of the vessel from the port of loading. In
addition, the Customs and Tariff Bureau of the MoF implemented the67

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JAPAN

Atsumi & Sakai

authorised economic operator (AEO) programme, a system conforming with international standards. Under this programme, companies
that have well-organised cargo security management and compliancesystems are given the benefit of simple and reduced customs clearance
procedures. Currently, Japan has signed mutual recognition of this
AEO programme with seven other countries.
25 Where is information on countries subject to export controls
listed?

Foreign Exchange Act• Ten years of imprisonment with labour or a fine of not more than
¥10 million, or both, provided, however, that if the price of the subject of the violation, when multiplied by five, exceeds ¥10 million,
the fine shall be not more than five times of that price;• administrative sanction for banned export of cargos for a maximum of three years; and• dual liability also applies.

The catch-all control described in question 23 only applies to exports
shipped to certain regions, and the Export Order exempts certain
countries (‘white countries’) from catch-all control. Also, some of thecatch-all controls provide for various cases where prior permits are
required for cargo exported to countries and regions subject to a UNarms embargo, as listed in the Export Order: www.meti.go.jp/policy/
anpo/securityexportcontrol3.html.
For the purpose of national security and international cooperationetc, the Foreign Exchange Act requires exporters to obtain approval
from METI for the export of cargos to certain regions. The destinations
subject to this requirement are listed in the Export Order.

Financial and other sanctions and trade embargoes

26 Does your jurisdiction have a scheme restricting or banning
exports to named persons and institutions abroad?

Currently, comprehensive economic sanctions are in force in respect ofNorth Korea, and partial economic sanctions are in force in respect ofIran, Libya, Syria, Somalia and Eritrea.
Details are at: www.meti.go.jp/policy/external_economy/trade_
control/01_seido/04_seisai/seisai_top.html (Japanese only).

METI publishes an ‘End User List’, which lists foreign companies andorganisations believed to be involved in the development of weapons ofmass destruction etc. The End User List is not an embargo list, though
export to companies and organisations on the list requires a permit
from METI unless it is clear that the export cargo is not to be used forthe development of weapons of mass destruction based on the way inwhich the cargo will be used, the way in which the cargo is traded, theterms of the transaction and other factors.
The End User List (as of 29 March 2016) can be found at:www.meti.go.jp/policy/anpo/law_document/tutatu/kaisei/20160329_3.pdf.
27 What are the possible penalties for violation of export
controls?
Customs Act• Ten years of imprisonment with labour or a fine of not more than
¥30 million, or both;• forfeiture of the embargoed goods and unpermitted export goods;
and• dual liability also applies.

28 What government offices impose sanctions and embargoes?
The MoF and METI have the authority to implement economic sanctions if (i) they are deemed necessary in order to perform international
agreements, (ii) they are deemed especially necessary for Japan to contribute to international efforts for world peace, or (iii) a cabinet decision is made to take countermeasures deemed necessary to maintainthe peace and safety of Japan.
29 What countries are currently the subject of sanctions orembargoes by your country?

30 Are individuals or specific companies subject to financial
sanctions?
Yes. See ‘List of economic sanctions and individuals/activities subject
thereto’ (as of 20 May 2016), www.mof.go.jp/international_policy/
gaitame_kawase/gaitame/economic_sanctions/list.html(Japaneseonly).
Miscellaneous
31 Describe any trade remedy measures, import or export
controls not covered above that are particular to yourjurisdiction.
Not applicable.

Yuko Nihonmatsu
Fumiko Oikawa
Mariko Sanno

yuko.nihonmatsu@aplaw.jp
fumiko.oikawa@aplaw.jp
mariko.sanno@aplaw.jp

Fukoku Seimei Building
2-2-2 Uchisaiwaicho, Chiyoda-ku
Tokyo 100-0011
Japan

Tel: +81 3 5501 2111
Fax: +81 3 5501 2211
www.aplaw.jp/en/

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