eu-j apan epa factsheet · 2-a-3. these notes explain inter alia the various types of concessions,...

Under thesupervision of

EU-Japan Centrefor Industrial Cooperation

EU-Japan EPAFACTSHEET

This document has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA and bears no legal standing.© Copyright EU-Japan Centre 2019

www.eu-japan.eu/epa-helpdesk

TARIFF RATE QUOTAS (TRQs)

PRELIMINARY REMARKS• The aim of this Factsheet is to explain to EU exporters the preferential market access opportunities

under TRQs offered by the EU-Japan Agreement for an Economic Partnership (EPA).• As regards product specification, only the Harmonised System (HS) code system at six-digit level,

or the Japanese nomenclature at nine-digit level have been used. For detailed description of the Japanese nomenclature, reference is made to the Japanese Schedule in the Agreement.

• All quantities are expressed in metric tonnes (t), unless stated otherwise.• The complete text of the EPA, and annexes, incorporating the Schedule of Japan, can be found on

the following website of the European Commission: https://trade.ec.europa.eu/doclib/press/index.cfm?id=1684. Japan’s tariff Schedule and “Notes for the Schedule of Japan” can be found in Annex 2-A-3. These Notes explain inter alia the various types of concessions, including details on TRQs.

http://EU-Japan.eu/

http://EU-Japan.eu/EPA-Helpdesk




https://trade.ec.europa.eu/doclib/press/index.cfm?id=1684


This document has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA and bears no legal standing.


EU-Japan EPA FACTSHEET

Tarrif Rate Quotas (TRQs)

TARRIF RATE QUOTAS (TRQs)1. GENERAL OBSERVATIONS

• The EPA provides 25 TRQs for a number of EU products to be imported in Japan on a preferential basis.

• These TRQs allow during a fiscal year, and for a limited volume (the aggregate quantity), a partial or total import duty suspension for the product concerned.

• If during that fiscal year imports of that product exceed the TRQ limit, Japan will apply the relevant base rate duty[1] to the quantity above the limit.

• In the EPA Agreement, details of each of these 25 TRQs can be found in Section B of Annex 2-A-3. Each TRQ is has a number (TRQ-n) and is labelled as such in Japan’s EPA tariff schedule in column ‘Note’; this schedule is listed in Annex 2-A-4[2].

• In the Japanese Schedule, a fiscal year means the period between 1 April of one year and 31 March of the next year. As the Agreement has entered into force on 1 February 2019, the first year was the period between that date and 31 March 2019. As the first year is less than 12 months, the TRQ quantities listed in the Agreement for that year were reduced on a pro rata basis, i.e. divided by 6. This Report will, however, concentrate on complete – 12 months - fiscal year periods, i.e. as from Year 2.

• Most of the TRQs are administered by Japan through a TRQ volume allocation procedure by lottery or by proportional distribution. A limited TRQs are managed by Japan using a ‘simultaneous buy-sell’ (SBS) mechanism. The competent Japanese authority for TRQ management is the Ministry of Agriculture and Forestry (MAFF). A detailed overview of the different management systems per TRQ is illustrated below.

[1] “Base rate” Japan’s Most Favoured Nation (MFN) rate as scheduled in the WTO. It is applied on imports from non-preferential WTO Members. [2] Annexes 2-A-3 and 2-A-4: https://trade.ec.europa.eu/doclib/press/index.cfm?id=1684










2. TRQ SUMMARY TABLETRQ NR. /

NR. OF ANNOUN-CEMENT[3]

PRODUCT DESCRIPTION

TRQ QUANTITIES& IN-QUOTA

TARIFFS

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 (****)

MAX. ALLO-CATION

QUANTITY (T)(FY2019)

QUOTA MANAGEMENT

SYSTEM

TRQ1 Wheat productsQuantity (t) 120 140 160 180 200 200 200 200 200 200 Simultaneous

Sell-Buy (*)Tariff Duty free

TRQ2/1Mixes and doughs and cake mixes

Quantity (t) 11160 11920 12680 13440 14200 14200 14200 14200 14200 142001100

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionLottery system (*******)Tariff Duty free

TRQ3/2Food prepara-tions made primarily of wheat

Quantity (t) 2200 2400 2600 2800 3000 3000 3000 3000 3000 3000220

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionLottery systemTariff Duty free

TRQ 4Wheat flour, pelets, rolled and food preparations

Quantity (t) 3800 3900 4000 4100 4200 4200 4200 4200 4200 4200SimultaneousSell-Buy (*)Tariff Duty free

TRQ 5 Wheat

Quantity (t) 212 223 235 247 258 270 270 270 270 270SimultaneousSell-Buy (*)Tariff (**)

15.3 yen/kg

14.5 yen/kg

13.6 yen/kg

12.8 yen/kg

11.9 yen/kg

11.1 yen/kg

10.2 yen/kg

9.4 yen/kg

9.4 yen/kg

9.4 yen/kg

TRQ6/3 Udon

Quantity (t) 10 10 10 10 10 10 10 10 10 10

4

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionProportional distribu-tion (*******)

Tariff Duty free

TRQ7Barley flour, groats and pellets

Quantity (t) 120 140 160 180 200 200 200 200 200 200 SimultaneousSell-Buy (*)Tariff Duty free

TRQ8 Food prepara-tions of barley

Quantity (t) 120 140 160 180 200 200 200 200 200 200 SimultaneousSell-Buy (*)Tariff Duty free

TRQ9 Barley

Quantity (t) 30 30 30 30 30 30 30 30 30 30SimultaneousSell-Buy (*)Tariff (**)

7.2 yen/kg

6.8 yen/kg

6.4 yen/kg

6.0 yen/kg

5.6 yen/kg

5.2 yen/kg

4.8 yen/ kg

4.4 yen/kg

4.4 yen/kg

4.4 yen/ kg

TRQ10/4

Malt (other than not roasted and not fumigated with peat, roasted)

Quantity (t) 185700 185700 185700 185700 185700 185700 185700 185700 185700 185700

46425

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionProportional distribution

Tariff Duty free

TRQ11/5Coffee, tea mixes, food preparations and doughs

Quantity (t) 1321 1372 1423 1474 1525 1576 1627 1678 1729 1780

100

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionProportional distribution

Tariff Duty free

TRQ12/6 Food preparations

Quantity (t) 157.5 165 172.5 180 187.5 195 202.5 210 217.5 22515

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionTariff Duty free

TRQ13/7 Glucose and fructose

Quantity (t) 2136 2492 2848 3204 3560 3916 4272 4628 4984 5340500

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionLottery system Tariff Duty free or 21.5 yen/kg (***)

TRQ14/8 Food preparations

Quantity (t) 3850 4200 4550 4900 5250 5600 5950 6300 6650 7000350

TRQ volume alloca-tion procedure by lottery / by propor-tional distributionProportional distribution Tariff 14.0%

[3] The TRQ number as indicated in the EPA (see footnote 2), followed by the number of the so-called “Announcement” (published by Japan’s Ministry of Agriculture for the TRQs managed by an Import Licensing Procedure - see point 4.1 below).









TRQ NR./ NR. OF

ANNOUN-CEMENT

PRODUCT DESCRIPTION


TARIFFS

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 (****)

MAX. ALLO-

CATION QUANTITY

(T)(FY2019)

QUOTA MANAGEMENT

SYSTEM

TRQ15/9

Food preparations containing more than 50 per cent of sucrose, and cocoa powder:

Quantity (t) 103 106 109 112 115 118 121 124 127 130

10

TRQ volume allocation procedure by lottery/ by proportional distributionProportional distribution

Cane sugar[4] Tariff Duty free

Other cane sugar and other than centrifugal sugar[5]

Tariff Duty free

Prepared vegetables and other prepared vegetables n.e.s.[6]

Tariff Duty free

Sugar added cocoa powder[7] Tariff 27.0% 25.7% 24.3% 23.0% 21.6% 20.3% 18.9% 17.6% 16.2% 14.9%

Dairy product prepara-tion (under 30% milk content, under 50% sucrose etc.)[8]

Tariff 27.6% 26.5% 25.5% 24.3% 23.3% 22.2% 21.1% 20.0% 18.9% 17.9%

Other preparation (more than 50% of sucrose and including milk fat etc.)[9]

Tariff 27.6% 26.5% 25.5% 24.3% 23.3% 22.2% 21.1% 20.0% 18.9% 17.9%

TRQ16/10 SugarQuantity (t) 500 500 500 500 500 500 500 500 500 500

(******)TRQ volume alloca-tion procedure by lottery/ by propor-tional distributionTariff Duty free

TRQ17/11

Starch: Quantity (t) 6550 6700 6850 7000 7150 7150 7150 7150 7150 7150

1000 (******)

TRQ volume allocation procedure by lottery / by proportional distributionLottery system

Selection of starches: maize (corn), potato starch, manioc (cas-sava) starch and other starches[10]

TariffDuty free

(subject to levy up to 25% and only if those originating goods are imported for manufacturing starch sugar, dextrin, dextrin glue, dissolve starch, roasted starch of starch glue)

Maize (corn) starch - other[11] Tariff 12.5%

(imported for purposes other than those mentioned above)

Starch preparation (not containing sugar)[12]

Tariff 16.0%

Manioc (cassava) starch, other and other starches[13]

Tariff 25%

Other starch prepara-tions (containing sugar)[14]

Tariff Duty free or 25%

TRQ18/12 Prepared edible fats and oils

Quantity (t) 380 400 420 440 460 480 500 520 540 560

76


Tariff 19.4% 18.4% 17.4% 16.5% 15.5% 14.5% 13.6% 12.6% 11.6% 10.7%

[4] Product concerned: 170113.000[5] Product concerned: 1701113.000, 170114.190[6] Products concerned: 200540.190, 200551.190, 200599.119, 210690.282, 210690.510[7] Product concerned: 180610.100[8] Product concerned: 210690.284[9] Product concerned: 190190.219[10] Products concerned: 110812.090, 110813.090, 110814.090, 110819.019, 110819.099[11] Product concerned: 110812.090[12] Products concerned: 190120.159, 190190.179[13] Products concerned: 110814.090, 110819.019, 110819.099[14] Products concerned: 190120.159 (in-quota rate duty free), 190190.179 (in-quota rate 25%)









TRQ NR./ NR. OF

ANNOUN-CEMENT

PRODUCT DESCRIPTION


TARIFFS

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 (****)

MAX. ALLO-

CATION QUANTITY

(T)(FY2019)

QUOTA MANAGEMENT

SYSTEM

TRQ19/13 Food preparations containing cocoa

Quantity (t) 580 580 580 580 580 580 580 580 580 580

58


Tariff 19.4% 18.4% 17.4% 16.5% 15.5% 14.5% 13.6% 12.6% 11.6% 10.7%

TRQ20/14Food preparations containing cocoa (for the preparation of chocolate)

Quantity (t) 526 612 698 784 870 956 1042 1128 1214 1300

(******)

TRQ volume allocation procedure by lottery / by proportional distributionProportional distribution

Tariff Duty free

TRQ21/15 Evaporated milk

Quantity (t) 1124 1468 1812 2156 2500 2500 2500 2500 2500 2500

75 (******)


Tariff Duty free

TRQ22/16

Whey: Quantity (t) 6520 6840 7160 7480 7800 8120 8440 8760 9080 9400

218 (******)


Mineral concentrated whey (sugar added)[15] Tariff 28.6% 25.5% 22.3% 19.1% Duty free

Mineral concentrated whey (no sugar added)[16] Tariff 20.5% 18.2% 15.9% 13.6 Duty free

Whey other than mineral concentrated (including prepared whey for infant formula and whey permeate)[17]

Tariff Duty free

TRQ23/17

Butter, skimmed milk powder, milk powder, butter milk powder and condensed milk:

Conversion factor Quantity (t) 13286 13714 14143 14571 15000 15000 15000 15000 15000 15000

886

TRQ volume allocation procedure by lottery/ by proportional distributionLottery system

Butter and other dairy spreads[18] Tariff

35%+261yen

/kg

35%+232yen

/kg

35%+203yen

/kg

35%+174yen

/kg

35%+145yen

/kg

35%+116yen

/kg

35%+87yen

/kg

35%+58yen

/kg

35%+29yen

/kg35%

Skimmed milk powder (sugar added)[19] Tariff

35%+117yen

/kg

35%+104yen

/kg

35%+91yen

/kg

35%+78yen

/kg

35%+65yen

/kg

35%+52yen

/kg

35%+39yen

/kg

35%+26yen

/kg

35%+13yen

/kg35%

Skimmed milk powder (no sugar added)[20] Tariff

25%+117yen

/kg

25%+104yen

/kg

25%+91yen

/kg

25%+78yen

/kg

25%+65yen

/kg

25%+52yen

/kg

25%+39yen

/kg

25%+26yen

/kg

25%+13yen

/kg25%

Milk powder Tariff30%

+189yen/kg

30%+168yen

/kg

30%+147yen

/kg

30%+126yen

/kg

30%+105yen

/kg

30%+84yen

/kg

30%+63yen

/kg

30%+42yen

/kg

30%+21yen

/kg30%

Butter milk powder (sugar added) Tariff

35%+180yen

/kg

35%+160yen

/kg

35%+140yen

/kg

35%+120yen

/kg

35%+100yen

/kg

35%+80yen

/kg

35%+60yen

/kg

35%+40yen

/kg

35%+20yen

/kg35%

Buttermilk powder (no sugar added) Tariff

25%+180yen

/kg

25%+160yen

/kg

25%+140yen

/kg

25%+120yen

/kg

25%+100yen

/kg

25%+80yen

/kg

25%+60yen

/kg

25%+40yen

/kg

25%+20yen

/kg25%

Sugar added condensed milk[21] Tariff Duty free

TRQ24/18

Milk pow-der (for the prepara-tion of chocolate)

Conversion factor

Quantity (t) 6312 7382 8451 9521 10591 11661 12731 13800 14870 15940

(******)

TRQ volume allocation procedure by lottery/ by proportional distributionProportional distribution

Tariff Duty free

[15] Products concerned: 040410.129, 040410.169 (further product sub-divisions per 9-digit code)[16] Products concerned: 040410.129, 040410.169 (further product sub-divisions per 9-digit code)[17] Products concerned: 040410.139, 040410.149, 040410.189, 040490.118, 040490.128, 040490.138[18] Products concerned: 040510.129, 040510.229, 040520.090, 040590.190, 040590.229[19] Products concerned: 040210.129, 040229.291[20] Products concerned: 040210.212, 040210.229, 040221.212, 040221.229[21] Products concerned: 040299.129, 040299.290









TRQ NR./ NR. OF

ANNOUN-CEMENT

PRODUCT DESCRIPTION

TRQ QUANTI-

TIES & IN-QUOTA TARIFFS

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 (****) 2029 2030 2031 2032 2033

MAX. ALLO-

CATION QUANTITY

(T)(FY2019)

QUOTA MANAGE-

MENT SYSTEM

TRQ25/19

Cheeses: Quantity (t) 20600 21200 21800 22500 23200 23900 24600 25300 26100 26900 27700 28500 29300 30200 31000 (*****)

824

TRQ volume allocation procedure by lottery/ by oportional distributionLottery system

Shredded cheese[22] Tariff 19.6% 18.2% 16.8% 15.4% 14.0% 12.6% 11.2% 9.8% 8.4% 7.0% 5.6% 4.2% 2.8% 1.4% 0.0%

Fresh, soft, cream and blue-veined cheeses[23]

Tariff 26.1% 24.2% 22.4% 20.5% 18.6% 16.8% 14.9% 13.0% 11.2% 9.3% 7.5% 5.6% 3.7% 1.9% 0.0%

Grated or powdered cheese,and processed cheese except for grated or powdered cheese[24]

Tariff 35.0% 32.5% 30.0% 27.5% 25.0% 22.5% 20.0% 17.5% 15.0% 12.5% 10% 7.5% 5.0% 2.5% 0.0%

(*) Subject to a ‘mark-up’ that may be collected by Japan(**) Maximum import mark-up to set the minimum selling price (***) Duty free tariff lines: 170230.221, 170230.229, 170240.220, 170260.220, and 170290.529 Tariff lines at 21.5 yen/kg: 170230.210, 170240.210 and 170260.210[25] (****) TRQ quantity to remain at that level in subsequent years, except for TRQ-25 Cheeses (see below)(*****) TRQ quantity to grow indefinitely in function of Japan’s cheese consumption. More details can be found in Annex 2-A-3, p. 89(******) Specific technical and/or quantitative import conditions apply; details can be found in Annex 2-A-3 Section B of the EPA(*******) Difference between Lottery System and Proportional Distribution

Lottery System: Persons or corporations who applied during the application period shall be deemed to have applied at the same time. The application order shall be determined by lottery separately and shall be allotted beginning from the highest ranked persons or corporations. Implementation of the lottery shall be revealed in the annual Announcement (see Point 4.1).Proportional distribution: Each applicant will be allotted the allocation quantity obtained by:the application quantity × the ceiling allocable quantity for each period the aggrega te application quantity

[22] Product concerned: 040610.020[23] Products concerned: 040610.090, 040640.090, 040690.090[24] Products concerned: 040620.100, 040630.000[25] More details can be found in Annex 2-A-3 p. 54









3. TRQ OVERVIEW WITH RELATED TARIFF LINES

TRQ N° PRODUCT DESCRIPTION TARIFF LINES (JAPANESE NOMENCLATURE)[26]

1 Wheat products 190410.221, 190420.221, 190430.010, 190490.210, 210690.214.

2 Mixes and doughs and cake mixes 190120.222, 190120.232, 190120.235, 190120.243.

3 Food preparations made primarily of wheat 190190.242, 190190.247, 190190.252, 190190.267.

4 Wheat flour, pellets, rolled and food preparations

110100.011, 110100.091, 110290.210, 110311.010, 110319.210, 110320.110, 110320.510, 110419.111, 110419.121, 110429.111, 110429.121, 110811.010, 190120.131, 190120.151, 190190.151, 190190.171.

5 Wheat 100111.010, 100119.010, 100191.011, 100191.019, 100199.011, 100199.019, 100860.210.

6 Udon 190219.092.

7 Barley flour, groats and pellets 110290.110, 110319.110, 110320.410, 110419.410, 110429.410, 190410.231.

8 Food preparations of barley 190120.141, 190190.161, 190420.231, 190490.310, 210690.216.

9 Barley 100310.010, 100390.019.

10 Malt 110710.029, 110720.020.

11 Coffee, tea mixes, food preparations and doughs

170290.219, 190120.239, 190190.217, 190190.248, 190190.253, 210112.110, 210112.246, 210120.246, 210690.251, 210690.271, 210690.272, 210690.281.

12 Food preparations 210690.590.

13 Glucose and fructose 170230.221, 170230.229, 170240.220, 170260.220, 170290.529, 170230.210, 170240.210, 170260.210

14 Food preparations 190190.211.

15 Food preparations containing more than 50% of sucrose, and cocoa powder

170113.000, 170114.190, 200540.190, 200551.190, 200599.119, 210690.282, 210690.510, 190190.219, 210690.284,180610.100

16 Sugar 170112.100, 170112.200, 170114.110, 170114.200, 170191.000, 170199.100, 170199.200, 170290.110, 170290.211, 170290.521, 210690.221.

17 Starch 110812.090, 110813.090, 110814.090, 110819.019, 110819.099, 110820.090, 190120.159, 190190.179

18 Prepared edible fats and oils 210690.291

19 Food preparations containing cocoa 180620.290

20 Food preparations containing cocoa (for the preparation of chocolate) 180620.290

21 Evaporated milk 040291.129, 040291.290

22 Whey 040410.129, 040410.139, 040410.149, 040410.169, 040410.189, 040490.118, 040490.128 and 040490.138

23Butter, skimmed milk powder, milk powder, butter milk powder and condensed milk

040510.129, 040510.229, 040520.090, 040590.190, 040590.229, 040210.129, 040210.212, 040210.229, 040221.212, 040221.229, 040229.291, 040221.119, 040221.129, 040229.119, 040229.129, 040390.113, 040390.123, 040390.133, 040299.129 and 040299.290

24 Milk powder (for the preparation of chocolate) 040221.119 and 040221.129

25 Cheeses 040610.020, 040610.090, 040640.090, 040620.100, 040630.000 and 040690.090

[26] Detailed product description for each tariff line can be found in the Japanese EPA Schedule (Section D in Annex 2-A-4): https://trade.ec.europa.eu/doclib/press/index.cfm?id=1684 or on the website of the Japanese customs department: www.customs.go.jp/english/tariff/2018_4/index.htm







http://www.customs.go.jp/english/tariff/2018_4/index.htm





4. TRQ MANAGEMENT SYSTEMS[27]

A majority of the 25 TRQs Japan has opened in the EPA, including the most important ones, are managed on the basis of an Allocation Procedure; only six of them (wheat related products) are managed by a simultaneous buy-sell system.

4.1. TRQ VOLUME ALLOCATION PROCEDURE BY LOTTERY OR BY PROPORTIONAL DISTRIBUTION

Under this system importers who make an application to MAFF during an earlier application period are more likely to obtain the allocation. All the required details of this Allocation Procedure - for each TRQ - can be found in the ‘Announcements’ pub-lished for each TRQ by the Japanese Ministry of Agriculture (MAFF). These announcements will be published on a Commission’s website, which will be made available shortly (hereafter “the Announcements”). Persons or corporations can apply for TRQ allocations but procedures, requirements and conditions can vary for each TRQ. Below a brief overview of this Procedure.

• TRQ Application- Japan allocates the tariff rate quotas volumes by issuing import licences which will be valid for the whole quota year. - There are several application periods set up by Japan over a quota year: January, July and November.- Applicants should introduce a request for a quota share with an import plan, and have a food related business plan. Qualifications of applicants can vary per TRQ.- Importers who make an application during the same application period will be considered as arriving at the same time.- The entire aggregate quantity provided in the EPA for each TRQ opened by Japan is subject for allocation in the first application period. If the total application quantities in the first period remain below the available aggregate quantity, a second application period will be opened where the remaining available TRQ quantity will be the subject. The same will apply to the third period. Importers can decide to return their unused licences to MAFF before the end of the fiscal year.- Where the requested quantities, in a given period, remain below or a equal to the available aggregate TRQ quantity, the applicants can obtain their requested applications. Where the requested quantities exceed the available TRQ aggregate quantity, an allocation will be conducted by means of a “lottery” among the applicants, or by “proportional distribution”, where the obtained quantity will correspond to the ratio between the requested quantity and the available TRQ quantity. In this case there will be no subsequent period, unless there are unused quantities returned by allocation holders to MAFF by the end of September.- A maximum allocation TRQ quantity or application quantity per applicant can be fixed, in order to avoid monopoly or oligopoly applications.- In concrete terms, in a given year, MAFF will set up the first application period for four weeks from January to February. The result of the allocations will be made public by MAFF in March, and the relevant TRQ certificates will be issued on 1 April[28]. Remaining TRQ quantities (if any) will be announced on the MAFF website by the end of May. The second or third application periods would be fixed for one week, in July or November.

[27] Information on TRQ management will be made available on the MAFF website: http://www.maff.go.jp/j/kokusai/boueki/triff/index.html[28] Where in a given year the announced date is on a Saturday or a Sunday, or a holiday, it will be the next business date.





http://www.maff.go.jp/j/kokusai/boueki/triff/index.html





- The standard schedule of TRQ allocation is illustrated in below table:

FIRST ALLOCATION

SECOND ALLOCATION (*)

THIRD ALLOCATION (*)

PERIODS FOR RETURNING UNUSED

QUANTITIES

December Announcement of TRQ instructions

January Application period

February

March Announcement of the allocation results

April Issuing of the TRQ certificate X

MayAnnouncement of the remaining TRQ quantities

X

June X

JulyAnnouncement of the available TRQ quantities2nd Application period (*)

X

AugustAnnouncement of the 2nd period allocation results Issuing of the TRQ certificates

X

September Announcement of the remaining TRQ quantities X

October

NovemberAnnouncement of the available TRQ quantities3rd Application period (*)

DecemberAnnouncement of the 3rd period allocation results Issuing of the TRQ certificates

January Announcement of the remaining TRQ quantities

(*) if allocations remain from the previous period









• Required documentation- Applicants will be required to attach documents to the TRQ application. These required documents vary according to the respective TRQ. Details can be found in the corresponding Announcement. Examples of required documents are:

• First of all, the TRQ Application Form• List of recorded quantity (imported quantity during the previous period)• List of planned Quantity (during the upcoming period)• Document certifying a potential purchaser’s intent to purchase the goods subject to the TRQ• Import plan, including the total requested TRQ quantity and import schedule (which quantity will be imported when during the fiscal year)• Registration certificate (for legal persons/corporations) or a certificate of residence (natural persons).

- Where there are no changes to the details of the documents for the second and subsequent applications, many of these required documents might no longer be necessary for certain TRQ applications (apart from the Application Form).

• Use of TRQ certificates- An obtained allocation will allow the applicant to import relevant goods at the in-quota tariff level into Japan by presenting its TRQ certificate to Customs. - An applicant who has obtained an allocation cannot transfer it to other applicants.- The certificate can be used at any time and at any number of times through 31 March of the next year. - Unused allocations must be returned by the end of September (of the year in which they obtained the allocation), so that MAFF can re-allocate them during the second or third application period. Unused allocations will not be carried over to the next fiscal year.- Allocation holders who do not return unused allocations (representing more than 10% of their total allocations in a given year) will be penalised. This penalty will consist of limiting future allocations in the next two years to the level of actually used quantities. In fact, volumes returned before 29 October will not be subject to penalties.









5. SIMULTANEOUS BUY AND SELL SYSTEM (SBS)

• A limited number of Japanese cereals related TRQs will be managed by the SBS system. Under this system MAFF decides among pairs of importers and the distributers, who bid on the offered TRQ shares.• The biddings with the highest differences between the selling prices asked by the importers and the buying prices offered by the distributers (the so-called “mark-ups”) will be accepted by MAFF.• The accepted importers and the distributers would then make a contract with MAFF who simultaneous buys from the importer and sells to the distributors.• The EU exporters generally make a sales contract with the importers who then start this procedure with a distributor via MAFF.

• The related TRQs are:

TRQ N° PRODUCT DESCRIPTION TARIFF LINES

1 Wheat products 190410.221, 190420.221, 190430.010, 190490.210, 210690.214.

4 Wheat flour, pellets, rolled and food preparations

110100.011, 110100.091, 110290.210, 110311.010, 110319.210, 110320.110, 110320.510, 110419.111, 110419.121, 110429.111, 110429.121, 110811.010, 190120.131, 190120.151, 190190.151, 190190.171.

5 Wheat 100111.010, 100119.010, 100191.011, 100191.019, 100199.011, 100199.019, 100860.210.

7 Barley flour, groats and pellets 110290.110, 110319.110, 110320.410, 110419.410, 110429.410, 190410.231.

8 Food preparations of barley 190120.141, 190190.161, 190420.231, 190490.310, 210690.216.

9 Barley 100310.010, 100390.019.









DISCLAIMER

The Report has been prepared with the sole purpose of clarifying and simplifying the under-standing of some parts of the EU-Japan EPA related to TRQs, and bear therefore no legal stand-ing. While utmost care was taken in the preparation of the report, the author, the EU-Japan Centre, and the European Commission cannot be held responsible for any error or omission.

This report does not constitute legal advice in terms of business development cases. As a result, only the legal text and annexes of the EU-Japan EPA, as well as relevant legislation in the EU and Japan prevail. The Report reflects the view of the author who cannot be held responsible for any use which may be made of the information contained herein.





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