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.

EPA Process
INCREASE
MARKET SHAREEU PRODUCTSPROMOTION &INFORMATION

July 2018
Signature
1/2/2019
Entry into ForceManaged bywww.eu-japan.eu/epa-helpdesk

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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
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Description
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 formotor vehicles
Piston engines and parts thereofElectrical machinery and equipment & parts thereof
Vehicles other than railway or tramway rolling stock and parts and accessories
thereof
Instrument panel meters, parts and accessories thereofInstrument panel clocks
Seats for motor vehicles
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Types of EPA Concessions
TypeEPA CodeDescription

Immediate Liberalisation

AJapan’s base rate is eliminated at the entry intoforce of the Agreement

Duty elimination spread over aperiod

B

Duty reduction spread over a period

RTariff rate quotas

TRQ

Gradual elimination of Japan’s base rate over a
period of time. the zero duty will be applied insubsequent years.
Gradual reduction of Japan’s base rate to a certain
level. The final reduced level will be applied insubsequent years.
TRQs allow for one of the above preferences
within the limits of an annual import quantity.

Exclusion

X

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Tariff lines excluded from any preference

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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 inmotor vehicles).

-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

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Under the supervision of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,- Improving international harmonisation of requirements,- convergence of regulatory requirements via application of UN Regulations andGTRs-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.
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Under the supervision ofRULES OF ORIGIN
GENERALITIES-to benefit from an EPA preference: product must be originating in theEU or Japan.

-

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/3Band Appendix 3-B-1): further requirements in order to beoriginating.

•for vehicles & parts, these requirements can include:• a change in tariff classification• a maximum value of non-originating materials• a minimum regional value content
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Under the supervision of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 theproduction of the goods if these materials are classified under another Chapter
CTH (Change of Tariff Heading): Non-EU/Japan originating materials may be used inthe production of the goods if these materials are classified under another Heading
CTSH (Change of Tariff Sub-Heading): Non-EU/Japan originating materials may be usedin the production of the goods if these materials are classified under another SubHeading

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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, listing the PSR, only concerns EU products exportedto Japan with an EPA preference, such as:
ProductPSR

HS3819.00 – Hydraulic brakefluids- CTSH, meaning that non-(EU-Jap.) originating materials can be used in theproduction of these goods if these materials are classified under another tariff subheading, 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 productionof these goods if these materials are classified under another tariff heading

Managed bywww.eu-japan.eu/epa-helpdeskUnder the supervision ofRULES OF ORIGIN
SPECIFIC PRODUCT RULES (PSR)
ProductPSR

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

HS8302.10 – Hinges of all kind, of base metal- CTH, meaning that non-(EU-Jap.) originating materials canbe used in the production of these goods if these materials
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 beused in the production of these goods if these materials areclassified under another tariff chapter

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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;

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

 Fiches per sectors andwebinars on EPA outcome
Wines and Spirits
Geographical Indications
SMEs
Forest products
TextilesManaged bywww.eu-japan.eu/epa-helpdesk

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INFORMATION SOURCES
Overall import conditions in Japan:➢ European Commission DG TRADE: “Access2Markets Database”:

https://trade.ec.europa.eu/access-tomarkets/en/content/welcome-access2markets-market-accessdatabase-users➢

Import procedures - Japan. Min. Health Labour & Welfare:https://www.mhlw.go.jp/english/topics/importedfoods/1.html➢ Japan’s Customs:

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

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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.
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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.