Agricultural products
- Document symbol
- G/LIC/N/3/JPN/22
- Original language
- English
- Published on
- 04/09/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The system of tariff rate quota is stipulated in the Customs Tariff Law, the Temporary Tariff Measures Law, the Cabinet Order on Tariff Rate Quota (hereinafter referred to as "TRQ") System and other related regulations. Specific procedures below are stipulated in the above Cabinet Order.
(1) A list of products and their quantity under the TRQ system are determined and publicized.
(2) Applicants that intend to obtain allocations of quota for certain agricultural products need to apply to the MAFF.
(3) The MAFF allocates the quota to applicants by issuing certificates of quota.
(4) Importers need to submit their certificates to the Directors-General of Customs when they import those products under the TRQ system.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Agricultural products that are subject to the TRQ system are listed below.
| Tariff item number | Description of products |
|---|---|
| ex04.01, ex04.03, ex04.04, ex18.06, ex19.01, ex21.01, ex21.06 | Other dairy products for general use |
| ex04.02 | Skimmed milk powder (For other purposes) |
| ex04.02 | Skimmed milk powder (For school lunch) |
| ex04.02 | Evaporated milk |
| ex04.04 | Mineral concentrated whey |
| ex04.04 | Whey and modified whey (For feeding purposes) |
| ex04.04 | Prepared whey (For infant formula) |
| ex04.05 | Butter and butteroil |
| ex07.13 | Dried leguminous vegetables |
| ex11.08, ex19.01 | Starches, inulin, and their preparations |
| ex12.02 | Ground-nuts |
| ex12.12 | Tubers of konnyaku |
| ex21.06 | Prepared edible fat |
| ex50.01, ex50.02 | Silk-worm cocoons and Raw silk |
Q3. The system applies to goods originating in and coming from which countries?
The TRQ system applies to products originating in and coming from any country, except for prepared edible fat which has country specific quota for New Zealand.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The TRQ system was established as a result of the Uruguay Round Agreements and is not intended to restrict the quantity or value of imports. The TRQ system charges a lower duty rate on imports of certain products with certificates up to a certain quantity and allows imports without certificates of TRQ by applying the out-of-quota duty rate.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The TRQ system is a statutory requirement based on the following law and regulation.
- The Customs Tariff Law (Article 9.2).
- The Temporary Tariff Measures Law (Article 8.5).
- The Cabinet Order on Tariff Rate Quota System.
- The Decree-law by the MAFF on TRQ Administration on Various Products such as Maize Products that are subject to the TRQ system are designated by the Cabinet Order. It is not possible for the government to abolish the system without a legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
In principle, the approval system applies to the products originating or shipped in all countries.
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
The information concerning allocation of quotas and formalities of filling application for TRQ is stipulated in the Decree-law and published on the website of the Ministry of Agriculture, Forestry and Fisheries, the Official Bulletin of Economy, Trade and Industry and the International Trade Bulletin. The amount of quotas and the names of importers to which quotas are allocated are published. There are no exceptions or derogations from the requirement.
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
The size of quotas is determined on a yearly basis. There are some cases where the size of quota is determined on a yearly basis but licenses are issued for importers a few times a year. Most of the issued licences are valid until the end of the fiscal year.
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Certificates of quota are not only issued to domestic producers, but also to importers and others. If importers do not actually use allocated quotas, quotas allocated to those importers in the succeeding period can be affected. Unused quotas are not added to quotas for a succeeding period. The names of importers to whom certificates of quota are issued are published on the website of the Ministry of Agriculture, Forestry and Fisheries, the Official Bulletin of Economy, Trade and Industry and the International Trade Bulletin.
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Publication of the information concerning procedures shall take place at least 90 days prior to the first day of accepting applications.
Q6.V. What are the minimum and maximum lengths of time for processing applications?
An application for TRQ will be processed as quickly as possible, within a maximum of 60 days after a receipt of the application.
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Importers can declare an import subject to TRQ anytime on and after the date of the issuance of certificates of quota as long as the licenses are valid.
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of the applications for TRQ is carried out by a single administration organ, the MAFF.
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
The allocation of quotas is determined so that the necessary amounts of products are imported. However, in the case where the total amount applied exceeds the in-quota amount as a whole, certain elements could be taken into account to determine the allocation of quotas, such as a plan for usage of products concerned, the actual import and usage in the previous period. Several applications for quotas are examined simultaneously.
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Certificates for quotas are also required in the case of prepared edible fat, where the country specific quota is established. Certificates are not issued automatically and the same procedures will apply with other products.
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
At the out-of-quota duty rate, certificate of TRQ is not required and there are no limitations regarding quantity.
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
No application is refused so long as that application meets the ordinary criteria.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Only qualified importers are able to apply for TRQs. The information regarding the eligibility of importers to whom certificates of quota are issued is published on the website of the Ministry of Agriculture, Forestry and Fisheries, the Official Bulletin of Economy, Trade and Industry and the International Trade Bulletin. There is no system of registration of persons or firms permitted to engage in importation under TRQ.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Information concerning application for TRQs has been published on the website of the Ministry of Agriculture, Forestry and Fisheries.
Q11. What documents are required upon actual importation?
Certificates are required upon actual importation.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There is no licensing fee or administrative charge for applying for TRQ.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No deposit or advance payment is required regarding the issuance of certificates of TRQ.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
In principle, the period of the validity of a certificate is one year or six months, or until the end of the fiscal year, and is stipulated in the Cabinet Order on TRQ System, etc.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
If importers do not utilize all or a part of allocated quotas, quotas allocated to those importers for the succeeding period can be affected.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
A certificate of TRQ may not be transferred
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
There is no other condition attached to the issuance of a certificate of TRQ.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There is no administrative procedure required prior to importation other than the issuance of a certificate of quota.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
There is no requirement regarding foreign exchange.