EU – JAPAN EPA
VEHICLES&PARTS
This presentation has been prepared with the sole purpose of simplifying the understanding ofsome parts of the EU-Japan EPA and bears no legal standing.

1

EPA Process
INCREASE
MARKET SHAREEU PRODUCTSPROMOTION &INFORMATION
July 2018
Signature
1/2/2019
Entry into ForceManaged bywww.eu-japan.eu/epa-helpdesk

Under the supervision of2

Market Access
Product Coverage
HS-Chapter
ex-CH38
ex-CH40
ex-CH70
ex-CH73
ex-CH76
ex-CH83
ex-CH84
ex-CH85
ex-CH87
ex-CH90
ex-CH91
ex-CH94

Managed byDescription
Hydraulic brakes fluids – Anti-freezing preparations
Transmission belts – Tyres – Inner tubes – Articles of vulcanised rubber
Safety glass
Nuts of iron or steel – Springs
Solid profiles of aluminium alloys
Locks used for motor vehicles – Hinges – Base metal mountings, fittings for motorvehicles
Piston engines and parts thereofElectrical machinery and equipment & parts thereof
Vehicles other than railway or tramway rolling stock and parts and accessories thereofInstrument panel meters, parts and accessories thereofInstrument panel clocks
Seats for motor vehicles

www.eu-japan.eu/epa-helpdesk

Under the supervision of3

Market Access
Types of EPA Concessions

TypeEPA CodeDescription

Immediate Liberalisation

AJapan’s base rate is eliminated at the entry into force ofthe Agreement

Duty elimination spread over a period

B

Gradual elimination of Japan’s base rate over a period oftime. the zero duty will be applied in subsequent years.

Duty reduction spread over a period

RTariff rate quotas

TRQ

Gradual reduction of Japan’s base rate to a certain level.
The final reduced level will be applied in subsequentyears.
TRQs allow for one of the above preferences within thelimits of an annual import quantity.

Exclusion

X

Managed bywww.eu-japan.eu/epa-helpdesk

Tariff lines excluded from any preference

Under the supervision of4

Market Access

In General:-All EU Vehicles & Parts imported in Japan:-

were already liberalised at MFN level, or-have been liberalised at the entry into force of the EPA, or-

will be gradually liberalised under the EPA (seats used in motorvehicles).

-Tariff lines liberalised at the EIF are not listed in the EPA Schedule.

-All tariff lines can be found at website of Japan’s Customs:
http://www.customs.go.jp/english/tariff/2019_4/data/e_50.htm

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of5

EPA Annex 2-C
Special provisions for Vehicles & Parts-Applies to all vehicles, parts & equipment regulated by 1958 and 1998 Agreements,
except for vehicles, parts & equipment used in agriculture and forestry.

-Objectives:- promotion of safety, environmental protection and energy efficiency,- trade facilitation between the EU and Japan,- convergeImproving international harmonisation of requirements,- nce of regulatory requirements via application of UN Regulations and GTRs-

As a result: EU and Japan align themselves to the same international standards.

-

Accelerated dispute settlement procedure on domestic regulatory procedures-A safeguard clause reserves each Party the right to suspend equivalent concessions
if other Party does not apply a UN Regulation specified in EPA Annex 2-C-1.

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of6

Rules Of Origin
GENERALITIES-to benefit from an EPA preference: product must be originating in the EU orJapan.

-to be originating the product must comply with:Managed by•

the provisions “Rules of Origin” of the EPA text (Chapter 3), including:conditions to be originating•

the Product Specific Rules (PSR) for each product (Annexes 3A/3B andAppendix 3-B-1): further requirements in order to be originating.

•for vehicles & parts, these requirements can include:• a change in tariff classification• a maximum value of non-originating materials• a minimum regional value content

www.eu-japan.eu/epa-helpdesk

Under the supervision of7

Rules Of OriginBASICSThe following definitions apply:

Chapter: the first 2 digits
Heading: the first 4 digits
Sub-Heading: the first 6 digits

in the HS tariff classification code

Wholly Obtained: EU/Japan origin is required
CC (Change of Chapter): Non-EU/Japan originating materials may be used in the productionof the goods if these materials are classified under another Chapter
CTH (Change of Tariff Heading): Non-EU/Japan originating materials may be used in theproduction of the goods if these materials are classified under another Heading
CTSH (Change of Tariff Sub-Heading): Non-EU/Japan originating materials may be used inthe production of the goods if these materials are classified under another Sub-Heading

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of8

Rules Of Origin
SPECIFIC PRODUCT RULES (PSR)-Important: EPA RoO provisions only apply on imports enjoying EPA
preferences, and do not apply on:- non-preferential imports, or- imports with preferences other than EPA (e.g. MFN duty free).

-EPA Appendix 3-B-1, listing the PSR, only concerns EU products exported toJapan with an EPA preference, such as:
ProductPSR

HS3819.00 – Hydraulic brakefluids- CTSH, meaning that non-(EU-Jap.) originating materials can be used in the
production of these goods if these materials are classified under another tariff
sub-heading, or- a chemical reaction, purification, production of standard materials, isomer
separation or biotechnical processing is undergone, or- MaxNOM 50%, or- RVC 55% (FOB)

HS7318.16 – Nuts of iron or steel

CTH, meaning that non-(EU-Jap.) originating materials can be used in the
production of these goods if these materials are classified under another tariffheading

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of9

Rules Of Origin
SPECIFIC PRODUCT RULES (PSR)
ProductPSR

HS7604.29 – Solid profiles of aluminium alloys- CTH, meaning that non-(EU-Jap.) originating materials
can be used in the production of these goods if thesematerials are classified under another tariff heading, or- MaxNOM 50% (EXW), or- RVC 55% (FOB)

HS8302.10 – Hinges of all kind, of base metal- CTH, meaning that non-(EU-Jap.) originating materials
can be used in the production of these goods if thesematerials are classified under another tariff heading, or- MaxNOM 50% (EXW), or- RVC 55% (FOB)

HS9401.90 – Parts of seats

CC, meaning that non-(EU-Jap.) originating materials
can be used in the production of these goods if thesematerials are classified under another tariff chapter

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of10

INFORMATION SOURCES EPA text and Annexes:

http://trade.ec.europa.eu/doclib/press/index.cf
m?id=1684
Of which:Annex 2-A: Schedule and Notes;
Annex 3-B: Product specific rules of origin;

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of11

INFORMATION SOURCES EPA Helpdesk: https://www.eu-japan.eu/epa-helpdesk

 Fiches per sectors andwebinars on EPA outcome
9 April 19
7 May 1921 May 19
11 June 19
18 June 19
28 Jan 20

Managed bywww.eu-japan.eu/epa-helpdesk

Wines and Spirits
Geographical Indications
Dairy Products
Meat Products
Processed Agricultural
Products
Fruit & Vegetables

Under the supervision of12

INFORMATION SOURCESOverall import conditions in Japan:
 European Commission DG TRADE “Market Access Database”:

http://madb.europa.eu/madb/indexPubli.htm

Japan’s Customs:

http://www.customs.go.jp/english/c-answer_e/imtsukan/1524_e.htm

Managed bywww.eu-japan.eu/epa-helpdesk

Under the supervision of13

INFORMATION SOURCES European Commission (DG TAXUD) – Rulesof Origin: https://ec.europa.eu/taxation_customs/business/calculat

ion-customs-duties/rules-origin_en https://ec.europa.eu/taxation_customs/business/internati
onal-affairs/international-customs-cooperation-mutualadministrative-assistance-agreements/japan_en https://ec.europa.eu/taxation_customs/sites/taxation/files/eu_japan_epa_guidance_claim_verification_denial_en.
pdfManaged bywww.eu-japan.eu/epa-helpdesk

Under the supervision of14

Thank you for your attention
Yvan VAN EESBEEK
Consultant at the EU-Japan Centre for Industrial Cooperation

QUESTIONS ?
This presentation has been prepared with the sole purpose of simplifying the understanding ofsome parts of the EU-Japan EPA and bears no legal standing.
15