ORIGIN EXAMINATION

IN JAPAN
Training Course on Rules of Origin
for Malaysia

January 29, 2016

Mariko HAGA
ROO Center, Japan Customs
1
Topics

1.Circumstance of Japan
2.Verification
3.Advance Ruling

2
1. Circumstance of Japan

14 EPAs in effect
Competent authority certification
(All EPAs)
Approved exporter certification
(Mexico, Peru, Swiss)
Self-Certification by importer, exporter or producer
(Australia)

3
1. Circumstance of Japan: Two Types of Origin Certification System

Exporter or producer obtains certificate of origin from issuing authority.

Competent authority certification

Issuing authority examines the origin status based on the document submitted by exporter or
producer before exportation.
Importer needs to submit CO to importing countrys Customs at the import declaration.
Exporting Importing
country Producer Exporter Importer country
Export

Issuing Import declaration

request Claim for Preferential tariff

treatment

Certificate
Certificate
Issuing Authority of Origin
of Origin
Customs
examination Importing country

Exporter, producer or importer can make origin certification document (OCD).

Importer submits OCD and other documentary evidence of origin, if necessary.
The Importing Party ensures the proper application of ROO through examination of Customs
clearance and verification, based on risk management.
Self-certification

Exporting Importing
country Producer Exporter Export Importer OCD country

OCD OCD Import declaration

Claim for Preferential tariff Documentary
treatment evidence of
origin
Origin
No examination on origin Customs Certification
Document
status in exporting party. Importing country
examination and verification 4
1. Circumstance of Japan: Basic flow of General Cargo (importation)

Departing from
Open Port/
Customs Airport Customs area

Completion of procedures

Payment of duties*2
Carrying cargo into

required by other import

Carrying cargo out

Import declaration

domestic circulation
Entry formalities

Unloading cargo

of customs area
customs area

(Inspection)
Examination

Permission

Release into
related laws*1

Import clearance procedures

(narrowly defined clearance procedures)

Various customs formalities (broadly

defined clearance procedures)
*1Certain goods to be imported require *2 Customs also collect payable consumption
permission or approval according to relevant tax and other excise taxes, such as liquor
tax, at the time of import clearance. 5
laws and regulations other than Customs Law.
1. Circumstance of Japan: Flow of Origin Examination

Japan Customs
Pre-Clearance Import Clearance Post-Clearance
-Advance Ruling
-Advance Ruling ROO -Domestic -International
Section Verification to Verification to
Importer Exporter & Producer
ROO ROO PCA ROO Section
Section Clearance Section Section
Section ROO
Center

Request for Information/Visit

Verification
Response

Risk Management

Permission
Customs and
Inquiry

Declaration

Import
Tariff Bureau
Import

Response
Importer/Customs Broker

Exporting Country
Exporter/ Producer Issuing Authority 6
Topics

1.Circumstance of Japan
2.Verification
3.Advance Ruling

7
2. Verification: What is verification in general?

A course of administrative action carried out

by the competent authorities to check the
authenticity and/or accuracy of the proof
of origin or the originating status of the
goods applicable for the claim of preferential
tariff treatment;

Ref. World Customs Organization. (JULY 2015) GUIDELINES ON PREFERENTIAL ORIGIN VERIFICATION
8
2. Verification: Background

Proliferation of free trade agreements

Increasing number of FTAs
Customs play the key role for implementation of FTAs
Each FTA has different rules of origin
A balanced origin control programme at pre-entry,
clearance and post clearance

9
2. Verification : Verification Process

Stipulated in FTA :e.g. Japan-Malaysia EPA

Article 43 Request for Checking of Certificate of Origin
Article 44 Verification Visit

Process in general:
(1) Identification of possible verification targets
(2) Selection of goods for verification
(3) Carrying out the verification
(4) Feedback of the result of verification

At import clearance or
through post clearance audits

Ref. World Customs Organization. (JULY 2015) GUIDELINES ON PREFERENTIAL ORIGIN VERIFICATION
10
2. Verification : Four types of Verification method

(1) Administrative cooperation

the Customs authority of the importing country requests the competent
authority of the partner country to provide administrative assistance. Upon
request from the importing side, the competent authority of the exporting
country would take the appropriate measures to confirm the authenticity of
the proofs of origin or the originating status of the goods in question.

(2) Direct inquiry

the Customs authority of the importing country directly requests information
from the exporter or producer in the exporting country.

(3) On-site visit

verification is conducted by visiting the premises of the exporter or producer
in the exporting country. This may be conducted by the competent authority
of the exporting country or importing country, or jointly.

(4) Importer based inquiry

the Customs authority of the importing country directs the inquiry for
verification only to the importer.
Ref. World Customs Organization. (JULY 2015) GUIDELINES ON PREFERENTIAL ORIGIN VERIFICATION 11
2. Verification : Selection of Potential Verification Targets

Basic flow of selection

Time: Every three months (approximately)

Source: Records of Importation

Inquiries from traders
Information from related section
(ROO section, clearance section, etc.)

Risk Indicators: (1) Combination of goods from certain partner countries,

(not exhaustive) based on past cases of noncompliance;
(2) The capability of the country to produce the goods;
(3) Traders history;
(4) The amount of duty involved;
(5) Country through which the goods were
transshipped;
(6) The length of time the shipment has been kept
in a third country;
(7) Unusual increase or decrease in the import volume
Ref. World Customs Organization. (JUNE 2015) GUIDELINES ON PREFERENTIAL ORIGIN VERIFICATION 12
2. Verification : Verification Process

As a first step, Japan Customs requests information from importer.

In case of self certification by exporter or producer, Japan customs conduct
verification to the exporter or producer after the request to importer, if necessary.
Importing party may deny preferential tariff treatment when a certifier fails to comply
with any of the relevant requirements including the verification request.

Exporting Party Importing Party

producer exporter importer

Request for
information
Request for Request for
information information
or checking Verification or checking
validity visit validity

Issuing authority Request for

information Japan Customs
Australia Customs
13
2. Verification : Verification Process (Japan side)

Exporting Country Japan

9 Regional Customs
Exporter/ Clearance Section
Producer
Trader/
Post Clearance Audit Importer
Section

ROO Section

ROO Center
Diplomatic Identification of potential verification targets
Channel (based on risk indicators)

Issuing CTB
Final administrative decision
Authority

14
2. Verification : Role of ROO Center

Coordination for verification under EPAs

To ensure appropriate origin determination
Request for information / verification visit

Cooperation with Post Clearance Audit (PCA)

section and clearance section
Dealing with inquiries on ROO
Sharing information on refused cases, doubtful transaction, etc.
Analyzing information and supporting implementation of PCA

15
2. Verification : Request for Information of the Origin (sample)

Sample

16
Topics

1.Circumstance of Japan
2.Verification
3.Advance Ruling

17
3. Advance Ruling: WTO agreement on Rules of Origin
[Reference]

Article 2 (h) (for non-preferential ROO)

(h) upon the request of an exporter, importer or any person with a

justifiable cause, assessments of the origin they would accord to a
good are issued as soon as possible but no later than 150 days after
a request for such an assessment provided that all necessary
elements have been submitted. Requests for such assessments
shall be accepted before trade in the good concerned begins and
may be accepted at any later point in time. Such assessments shall
remain valid for three years provided that the facts and conditions,
including the rules of origin, under which they have been made
remain comparable. Provided that the parties concerned are
informed in advance, such assessments will no longer be valid when
a decision contrary to the assessment is made in a review as
referred to in subparagraph (j). Such assessments shall be made
publicly available subject to the provisions of subparagraph (k);

18
3. Advance Ruling: WTO Agreement on Trade Facilitation
[Reference]

Article 3 (Advance Ruling)

1. Each Member shall issue an AR
2. A Member may decline to issue under some conditions
3. AR shall be valid for a reasonable period of time
4. The Member shall provide written notice to the applicant in case of
revocation, modification or invalidation of the AR
5. AR issued by a Member shall be binding on that Member
The Member may provide that the AR be binding on the applicant
6. Each Member shall publish the requirements for the application,
the time period of issuance, and the length of time
7. Each Member shall provide a review of the AR
8. Each Member shall endeavour to make publicly available

19
3. Advance Ruling: Revised Kyoto Convention
[Reference]

General Annex 9.9 (Standard)

The Customs shall issue binding rulings at the request of
the interested person, provided that the Customs have all
the information they deem necessary.

Guidelines
--------, many administrations have instituted a programme
of binding rulings, as prescribed in Standard 9.9. --------
In some administrations they may be legally binding and
provided for in national legislation,
whereas in others there may simply be a commitment by
the Customs to honour the ruling.

20
3. Advance Ruling: WCO Technical Guidelines on Binding Origin Information
[Reference]

1. Definition and Scope

2. Application for Binding Origin Information
3. Issuance of Binding Origin Information
4. Declining and Postponing of Issuance of Binding Origin
Information
5. Effect of Binding Origin Information
6. Annulment of Binding Origin Information
7. Modification and Revocation of Binding Origin Information
8. Effect of Modification and Revocation
9. Retroactive or Postponed Application and Modification and
Revocation
10. Review and Appeal
11. Publication and Confidentiality

21
3. Advance Ruling: Benefits and effects of Advance Ruling on ROO

Benefits
- More proper declaration under Self-assessment system
- Trade Facilitation
- Transparency
- Predictability (Inquires are able to have more accurate cost
accounting as well as easier planning for selling and marketing
before importation)

Additional effects
-Recover errors on CO
-Evidence of origin certification documents under self-certification

22
3. Advance Ruling: Procedure of AR (Overview)

Japan
Customs
Necessary documents for Request
CTB Requests for Advance Ruling on Origin (C-1000-2)
Additional supporting documents such as material
(if necessary) lists, photos and samples. (if necessary)
consultation response

Goods out of the scope of AR

ROO Center
Hypothetical goods
The goods under import declaration
(if necessary) The goods related conflicts such as judicial action
consultation response

Flow to issue (Issued within 30 days)

1. ROO officer make a draft of response.
ROO officers 2. In easy case, ROO officer issue the rulings.
in 9 Regional Customs 3. In other cases, ROO officer consult the draft with
ROO center.
4. ROO center consult it with CTB when necessary.
Response Request Review process
Request base (within 2 months of receipt)
Traders Response by Customs (within 30 days of the 23
request)
3. Advance Ruling: Customs Intelligence Database System

All the requests and answers nationwide are stored

in Customs Intelligence database System (CIS).

Japan Customs

CTB Access

ROO Center Access CIS

[Information on
requests and
answers]
Access
ROO Sections
in 9 district Customs
Input

24
3. Advance Ruling: The request form of Advance Ruling Provisional Translation
File NO. Registered NO.

Request for Advance RulingOrigin

Customs Form C 10002
Date of Inquiry Name, Address, and signature of an Inquirer Registered Code
Year/Month/Day of Importer

TO
Director-General of
TOKYO CUSTOMS
Name, Address, and signature of a Proxy Person in charge
Telephone number

I hereby make a request for ruling on the origin with respect to the following commodity concerning to
apply of tariff rate of WTO EPA GSP Others.

General or Customs office

Manufacture
commercial where import
site
name of the declaration will
Manufacturer
commodity be filed

Arrived Reference Materials

Status of Samples, Drawings, Catalogues , documents,
NOT yet Return/ NOT
merchandise Explanatory Notes, or Others ( )
arrived return)

Possible date of Contract;

Whether there are
Possible date of importation;
former example of
Time of planning for import
advance ruling of
Quantity, Value, special request,
same or similar
Investment, whether there is a
goods in question
plan for long term contract

Explanation of the merchandise (manufacturing process in relevant countries, or other specific matters
concerning to manufacturing, etc.)

The request form of Advance Ruling (C-1000-2)

I have an opinion on the origin of goods as below.YES NO

Disclosure OK/ NO The reason for

No disclosure

Period to be ( ) days (within 180 days) Additional Request/ Submit 25

disclosed material
3. Advance Ruling: The form of Advance Ruling for Response
Provisional Translation

Registered No.

Advance Ruling or Notification of ModificationOrigin

Customs Form C1000
In response to the request attached( File No. , we reply as follows:
Please be aware of the notes given below.

Answer The products are Vietnam preferential origin under AJCEP

The outline of Goods inquired

The reason for Origin

The form of Advance Ruling for Response (C-1000-3)

Date of issuance Year/Month/Date

Customs, ROO officer, Officer in charge (stamp) 26
3. Advance Ruling: Use of Written Advance Ruling

Advance Ruling binds on Customs at the

time of import declaration.
Valid for 3 years
Binding on Customs

Annulments or Invalidation
More than 3 years since the issuances
Differences of descriptions from actually
declared goods
Revisions of the related laws or regulations
Mistaken application of laws and regulations

27
3. Advance Ruling: Review of the Issued Advance Ruling

The Trader can request for the review of the Advance

Ruling issued, if he/she is dissatisfied with it.

Dissatisfaction with the advance ruling

issued by Customs
within 2 months
Requesting the review in writing (C-1001)
against the issued ruling
within 30 days, basically
Response from Customs to the request
28
3. Advance Ruling: Publication

For improving the transparency of the determination of the

origin of the goods, Issued advance rulings are publicly
available on the Customs website after the reply in
principle.
In case that the inquirer or related stakeholders may
suffer from a loss because of its publication, inquirers
can request the ROO Officer not to publish the
contents of advance rulings for up to 180 days.
Inquirers can request not
to open first 180 days.

issuance 180 days Accessible invalid

3 years
29
3. Advance Ruling : Sample of Published AR Provisional Translation

The date
when the
Registration
1110253 Customs Tokyo final August/22/2011
Number
decision is
made.

General
Description
Frozen Surimi(Minced Fish) HS code 03.04

The Frozen Surimi is not Type of

Determination(R
esponse) originating goods of India preferential Japan-India EPA
under the Japan-India EPA. tariff
Originating materials of India: Fish meat(03.03), Sugar(17.01)
Non-originating material of India: Phosphates(28.35)(Thai origin)
Outline of the
Manufacturing process: Frozen Surimi(Minced Fish) is produced from the above
product
materials in India.

The product which is classified under the heading of 03.04 and is produced in India
with the non-originating materials must satisfy the PSR of 03.04, Manufacture in
Reason for the which all the materials used are wholly obtained, in the Annex 2 of the Japan-India
determination EPA.
In this case, because the Phosphates are not wholly obtained and they do not satisfy
the said PSR, the product is not originating goods of India under the Japan-India EPA.

Relevant laws Article 27(b) of Japan-India EPA

and regulations Annex 2(PSR) of Japan-India EPA

30
3. Advance Ruling: Basic Concept on Documentary Examination

A Formality B Identity C Origin Criteria

Incorrect CO format
Different description of Different HS code
Registered signatures
commodity between between CO and
and stamps
CO and declaration declaration
Inappropriate
Lack of Indication of Incorrect indication of
modification made by
items about non-party origin criteria, etc.
unauthorized person,
invoice, etc.
etc.

In case identity of Basically unacceptable

except where the
goods is confirmed,
Unacceptable importer certifies goods
these minor errors are originating.
are disregarded. (e.g. Advance Ruling)

31
3. Advance Ruling : Documents required at Customs Clearance
Competent authority certification

Basic requirements
Declar Basically, no evidence is required.
ation
docum / + CO In the case there are some doubts on origin status
ent of goods, importer is required to provide additional
information or explanation for customs.

General rule
Declar
documentary
ation
docum / + OCD evidence of
origin
ent
Self-certification

Exception 1: Advance Ruling is issued

Declar No more evidence is required
ation
docum / + OCD Registration number of advance ruing has to be
ent indicated on the import declaration
Exception 2: Wholly obtained goods
Declar
ation
No more evidence is required when it is reasonably
docum / + OCD indicated on invoice or other clearance documents
ent that the goods are originating. 32
3. Advance Ruling: Challenges of Implementation

Consistent and transparent application

Customs to Customs
Official to Official
Awareness of private sector
Dissemination

More user-friendly
Internet?
Export?
More benefits?

Responsibility of importers

33
3. Advance Ruling: Promotion

Customs Website s information Leaflet for Advance Ruling

Customs Answer
1522 Advance Ruling on Rules of Origin
Under this system, importers are able to inquire of the customs
office about the rules of origin for the cargo scheduled to be
imported, and receive its ruling. The system offers the advantages
of enhancing the accuracy of cost calculation through advance
identification of the customs duty rate and also facilitating customs
clearance, due to the identification of the country of origin for the
cargo at the point of import declaration. In principle, advance
ruling requires an inquiry to be submitted in writing form and a
ruling is issued also in writing.
If an advance ruling is issued in writing, the said document
describing the reply from the customs office will be handed to the
importer.
The advance ruling is effective for three years. The content of the
ruling will not be respected at import declaration inspection if the
cargo content differs from that described in the inquiry and ruling,
if the effective period has expired, if customs handling has been
revised with revision of laws and regulations, etc., and in case of
error in application of laws and regulations. Additionally, if the
importer has an opinion on the advance ruling and requests a
review, such a request may be submitted within two months from
the day following the date of issue or delivery of the advance
ruling.
It must also be noted also that the details of the inquiry and
advance ruling issued in writing will be disclosed as a general
rule in order to guarantee transparency in handling at the
customs office.

34
Thank you for your kind attention!

35