JAPAN CUSTOMS LAW

(1) PURPOSE OF THE LAW AND SYSTEM

The objective of this law is to provide for the proper enforcement of customs procedures regarding the determination, payment, collection and refund of customs duty, as well as the exportation and importation of goods.

 

(2) OUTLINE OF THE LAW AND SYSTEM

 

Any person intending to import the relevant cargo shall file with the Director-General of Customs a declaration pertaining to the basis for duty assessment, the name, the quantity and value of the goods to be taken as the tax base for customs duty, and any other necessary matters relating to the goods. He must also obtain an import permit after the necessary inspection of the goods (Article 67).

Any person intending to import the cargo to which a self-assessed taxation system is applied shall also file a declaration pertaining to the payment of customs duty on the relevant cargo (Article 7).

 

(3) CABINET ORDER AND MINISTERIAL ORDINANCES

• Cabinet Order for Enforcement of the Customs Law
• Customs Law Enforcement Regulations
• Cabinet Order on Customs Fees

(4) OUTLINE OF THE CONTROL

1) Items Covered

Imported goods

2) Outline of Specifications, Standards and Inspections, etc.

i.Outline of the Control

(a) Any person who is to import any goods shall declare to the Director-General of Customs the name as well as quantity and price of the goods and any other necessary matters to the goods and obtain an import permit after necessary examination (Article 67).

(b) Importers shall be obliged to choose either to import after obliteration or correction of false or misleading indication of place of origin, or reship the goods, if the goods imported have, directly on the goods or indirectly on the container or package, etc., an indication that the place of production is different from the true place of origin (false indications), or an indication which does not necessarily falsify in an evident way the place of origin but may lead to misconception of origin of the said goods (indication which may lead to misconception) (Article 71). Furthermore, according to the Madrid Agreement, migratory states must take measures either to seize or prohibit the importation of any goods showing a false indication of place of origin or an indication which may lead to misconception.

(c) In cases where security equivalent to the total or a part of the amount of customs duty stated on the said import declaration is deposited, a time limit of payment of such customs duty may be deferred for a period not exceeding three months (Article 9-2).

ii. Procedure for Application

(a) Any person intending to declare for import or duty payment shall file a written declaration for import or duty payment describing the necessary matters with the Director-General of Customs (Article 7).

(b) Any person intending to deferred the time limit for duty payment (including for consumption tax payment) shall file a written request and necessary security with Customs to which he intends to make an import declaration (and duty payment declaration) (Article 9-2).

(c) Any person applying for permission regarding Hozei area (or bonded warehouse) shall file a written request for permission with the Director-General of the Customs having jurisdiction over the location of the place of the relevant warehouse (Article 35 of the Enforcement Law).

< Prior Instruction System >

In order to encourage proper declaration of importers in a self-assessed taxation system and to promote the smooth operations of its system, if importers requests instruction concerning tariff schedule table number necessary for declaration (such as tax rate, piece and quantity: hereinafter referred to as the "import system, etc.") and various matters of other procedures, an prior instruction system is designed to endeavor to provide appropriate instructions. Instructions are carried out by the custom counselors, chief examiners (in charge of clearance and exchanges, etc.), custom inspectors and other responsible departments.

• Instructions by custom counselors

When an inquiry concerning matters related to clearance is made by an importer, etc., if a custom counselor is able to directly answer, he/she should answer promptly.

• Instructions by chief examiners in charge of clearance division

When cargo has already arrived in Japan,instructions are made for the tariff schedule table number of the cargo, tax rate, price, tax rates of internal tax on consumption and local consumption tax, statistical item number and an import system.

• Instructions by custom inspectors or chief examiners in charge of special inspection department

When cargo has not yet arrived in Japan, instructions are made for a tariff schedule table number of the cargo, item number and an import system, etc. at the customs office where it is scheduled to be imported.

< Hozei Area System >

(a) Significance of Hozei areas

Hozei areas shall be land, buildings or other facilities designated by the Minister of Finance or permitted by the Director-General of the Customs as the places to store foreign cargo or cargo to be exported, or process, manufacture and exhibit foreign cargo (Articles 37, 42, 56, 62-2 and 62-8).

(Reference): In principle, foreign cargo shall not be stored in places other than Hozei areas. Furthermore, import and export procedures shall be implemented after the cargo to be exported or imported is delivered to Hozei areas (Articles 30 and 67-2 ).

(b) Types and function of Hozei areas

There are five types of Hozei areas: designated Hozei areas, Hozei warehouses, Hozei manufacturing warehouse, Hozei display area and Integrated Hozei area -the major functions of each are shown in the following table (Article 29, etc.).

Type	Major functions	Storage period	Permission, etc.
Designated Hozei area	Temporary storing of foreign cargo	One month	Land or facilities owned and managed by local governments are designated by the Minister of Finance
Hozei warehouse	Temporary or long-term storing of foreign cargo	Two years (provisions for its extension exist)	Facilities of the private sector are permitted by the Director-General of Customs
Hozei manufacturing warehouse	Processing and manufacturing foreign cargo as raw materials	Two years (provisions for its extension exist)	Facilities of the private sector are permitted by the Director-General of Customs
Hozei display area	Exhibition and utilization of foreign cargo	Period designated by the Director-General of Customs	Places such as international exhibition centers are permitted by the Director-General of Customs
Integrated Hozei area	Storing, processing, manufacturing and exhibiting of foreign cargo	Two years (provisions for its extension exist)	A parcel of land or facilities owned and managed by the third sector are permitted by the Director-General of Customs

Although examination of cargo is conducted at the place designated by the Director-General of Customs in principle, examination may be obtained at a location other than those designated (examination outside the designated place) by obtaining permission from the Director-General of Customs (Article 69). In such a case, the prescribed fee shall be paid to Customs (Article 100).

(5) HIGHLIHGTS OF THE RECENT AMENDMENT

Introduction of an additional tax system (October 1997: Article 12-2 and 12-3):As well as income tax and corporation tax, an additional tax for deficient declaration or no declaration is imposed on customs duty and internal consumption tax is to be imposed on an imported cargo.

(6) REFERENCE INFORMATION

(Liaison Office for Further Information)

Customs Clearance Division, Customs and Tariff Bureau, Ministry of Finance

Tel:03-3581-3041

http://www.mof.go.jp

(Reference Materials)

"Collected Basic Notices Related to Customs" Japan Tariff Association

"Annual Report on Customs" Japan Tariff Association

"Valuation 303" Japan Tariff Association

"Practical Business on Trade" Japan External Trade Organization

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