[ Import Regulations under FEFTA – Import Quota (IQ) ]
■ Outline
○ Significance
Import Quota (IQ) system based on FEFTA*, limiting the amount of import in order to protect natural resources, domestic industry, trc. and prohibiting further import, is the most powerful regulatoy measure among non-tariff barriers following import prohibition.
* Foreign Exchange and Foreign Trade Act, known as FEFTA
○ Target Items
Since the Import Quota is the most restrictive measure to import quantity after import prohibition among non-tariff barriers, items subject to IQ include (1) non-liberalized items such as some specific fishery products with a great need for domestic industry protection and (2) substances under regulation of Annex of Montreal Protocol on Substances that Delete the Ozone Layer.
○ Procedures
As it is needed to obtain approval by the Ministry of Economy, Trade and Industry to import items subject to IQ, importers shall pay attention to the qualification and time for the application and meet requirements for approval in advance.
○ Note
Tariff-Rate Quota(TRQ) based on the Customs Act is easily confused with Import Quota. TRQ refers to the measures imposing a low tariff on a certain amount of imported goods, and a high tariff if the quantity is exceeded for protection of the domestic industry, etc. It is different from Import Quota in that it does not prohibit the import itself even if the limit is exceeded.
■ The Items subject to IQ
1) Outline
ㅇ Import Quota (IQ) is designated by Item i of the Import Announcement notified by the Ministry of Economy, Trade and Industry, and its target items are divided into two main categories.
* Foreign Exchange and Foreign Trade Act, known as FEFTA
ㅇ Item i-1 of Import Quota specifies 10 non-liberalized items such as specific fishery products.
ㅇ Item i-2 of Import Quota specifies 6 items of regulated substances under regulation of Annex of Montreal Protocol on Substances that Delete the Ozone Layer.
2) Non-liberalized marine products
(HS Code) | Items |
0301.99-2 | Live herring(Clupea), cod(Gadus, Theragra, or Merlusccius), Japanese amberjack(Seriola), mackerel(Scomber), sardine(Etrumeus, Sardinops, or Engraulis), Japanese jack mackerel(Trachurus or Decapterus) and saury(Cololabis) |
0302 | Fresh or chilled herring(Clupea), cod(Gadus, Theragra, or Merlusccius) and eggs thereof, Japanese amberjack(Seriola), mackerel(Scomber), sardine(Etrumeus, Sardinops, or Engraulis), Japanese jack mackerel(Trachurus or Decapterus) and saury(Cololabis) |
0303 | Frozen herring(Clupea), frozen cod (Gadus, Theragra, or Merlusccius) and eggs thereof, Japanese amberjack(Seriola), mackerel(Scomber), sardine(Etrumeus, Sardinops, or Engraulis), Japanese jack mackerel(Trachurus or Decapterus) and saury(Cololabis) |
0304 | Fish fillets of herring(Clupea), cod(Gadus, Theragra, or Merlusccius), Japanese amberjack(Seriola), mackerel(Scomber), sardine(Etrumeus, Sardinops, or Engraulis), Japanese jack mackerel(Trachurus or Decapterus) and saury(Cololabis) and other fish meat (fresh, chilled or frozen) |
0305 | Dried, salted or brined herring(Clupea), cod(Gadus, Theragra, or Merlusccius), Japanese amberjack(Seriola), mackerel(Scomber), sardine(Etrumeus, Sardinops, or Engraulis), Japanese jack mackerel(Trachurus or Decapterus) and saury(Cololabis), and fish meals of these spices, fish eggs of cod(Gadus, Theragra, or Merlusccius) and ones steamed and then dried. |
0307 | Scallops, adductor muscle of scallops, and squid (except cuttlefish) (Live, fresh, chilled, frozen, dried, salted or brined) |
1212.21-1 | Edible seaweeds made in the shape of a thin rectangular (including square) sheet of paper, 1 sheet size not exceeding 430 square centimeters |
1212.21-2 | Makuraeamanori, Akanegumonori, Porphyra, Amanori, or other edible seaweads, and mixed edible seaweads thereof (except ones specified in 1212-21-1 of this table) |
1212.21-3 | Other edible seaweeds [limited to Monostroma in green algae, brown algae(Taretsuaonori, Hira-aonori, Kinuiaonori, Bo-aonori, Usuba-aonori, Minamiaonori or Suziaonori), Kohei kelp or Saccharina(except Atsubasuzi kelp)] |
2106.90-2-(2)-E | Food preparations of seaweeds [limited to Monostroma in green algae, brown algae(Taretsuaonori, Hira-aonori, Kinuiaonori, Bo-aonori, Usuba-aonori, Minamiaonori or Suziaonori), Kohei kelp or Saccharina(except Atsubasuzi kelp), Makureamanori, Akanegumonori, Porphyra, Amanori or Benitasa] |
3) The substances included in the Montreal Protocol - Substances that Deplete the Ozone Layer
Target Items | Excluded Items |
The substances listed in Group Ⅰ of Appendix A ＣＦＣｌ３ ＣＦ２Ｃｌ２ Ｃ２Ｆ３Ｃｌ３ Ｃ２Ｆ４Ｃｌ２ Ｃ２Ｆ５Ｃｌ | Except substances imported by the person subject to import approval pursuant to Import Public Announcement Item (ii)-2, substances used as raw materials in manufacture processing of substances other than relevant substances, and substances used for testing, research or analysis |
The substances listed in Group Ⅱ of Appendix A ＣＦ２ＢｒＣｌ ＣＦ３Ｂｒ Ｃ２Ｆ４Ｂｒ２ | Except substances imported by the person subject to import approval pursuant to Import Public Announcement Item (ii)-2 and substances used as raw materials in manufacture processing of substances other than relevant substances |
The substances listed in Appendix B ＣＦ３Ｃｌ Ｃ２ＦＣｌ５ Ｃ２Ｆ２Ｃｌ４ Ｃ３ＦＣｌ７ Ｃ３Ｆ２Ｃｌ６ Ｃ３Ｆ３Ｃｌ５ Ｃ３Ｆ４Ｃｌ４ Ｃ３Ｆ５Ｃｌ３ Ｃ３Ｆ６Ｃｌ２ Ｃ３Ｆ７Ｃｌ ＣＣｌ４ Ｃ２Ｈ３Ｃｌ３ | Except substances imported by the person subject to import approval pursuant to Import Public Announcement Item (ii)-2, substances used as raw materials in manufacture processing of substances other than relevant substances, and substances used for testing, research or analysis |
The substances listed in Group Ⅰ of Appendix C <Refer to the site below> | Except substances imported by the person subject to import approval pursuant to Import Public Announcement Item (ii)-2 and substances used as raw materials in manufacture processing of substances other than relevant substances |
The substances listed in Group Ⅱ and Ⅲ of Appendix C <Refer to the site below> | Except substances imported by the person subject to import approval pursuant to Import Public Announcement Item (ii)-2, substances used as raw materials in manufacture processing of substances other than relevant substances, and substances used for testing, research or analysis |
The substances listed in Appendix E ＣＨ３Ｂｒ | Except substances 1) imported by the person subject to import approval, 2) used as raw materials in manufacture processing of substances other than relevant substances and for testing, research or analysis [Limited to measurement of the concentration of the substance in the atmosphere or the quantity of the substance incorporated or adhered to the article or plant, and correction, testing and research {only for the purpose of comparison between the utility obtained by the use of relevant substance and the utility obtained by the use of another substance to be replaced by relevant substance (conducted in the building of test and research facilities), about the usage of relevant substance as a test reagent for the synthesis of another substance (accompanied by the destruction of relevant substance) or about the toxicity of relevant substance} of the meter used in the measurement] and 3) used for quarantine for import and export of goods |
* Montreal Protocol
https://www.env.go.jp/earth/ozone/montreal_protocol.html
4) Cases that Import Quota approval is not required
ㅇ Of the items subject to the Import Quota approval mentioned above, the following items don’t require approval by authorities in their import:
- Goods with total amount of 5 million yen or less (only for items specified in the notification by the Ministry of Economy, Trade and Industry)
- Free relief supplies
- Free sample or advertise goods notified by the Ministry of Economy, Trade and Industry
- Cargo for personal use with amount not subject to sale
- Luggages, occupational equipment, moving goods, etc.
ㅇ As the above items exempted from Import Quota approval are specified in the Article 14 and the Appended Table 1 and 2 of the Import Trade Control Order, detailes shall be checked separately.
ㅇ On the other hand, despite the above exemptions from approval, certain foreign cultural properties, endangered species of animal and plant, ozone layer depleting substances, nuclear materials, anti-personnel mines, and wastes are excluded from the exception and must be assigned the original quantity under Import Quota.
ㅇ Whether the handling item is subject to import approval shall be judged comprehensively, considering the HS codes in the list of items subject to import approval and exceptions, etc.
ㅇ This program informs whether the item is subject to approval based primarily on HS codes, and to be more precise, it is advisable to check the relevant laws and regulations.
■ Procedures of Application for Import Quota Approval
1) Application for approval
ㅇ In principle, the procedure of approval of the items subject to Import Quota approval consists of two steps: (1) Import Quota approval, and (2) Import approval, separately.
ㅇ Provided, That this is not the case when the person entrusted with the importation from the person who has been assigned Import Quota intends to import the goods, designated or confirmed by the Minister of Economy, Trade and Industry. (Article 9-i of the Import Trade Control Order heretofore)
ㅇ Any person who intends to apply for Import Quota shall file following documents to the Ministry of Economy, Trade and Industry and obtain approval before import of relevant items.
- Import quota application, in triplicate(only for the application for Import Quota)
* Import Quota application form
- Application for import, in duplicate(in the case of obtaining Import Quota and import approval)
- Other documents required by Import Public Announcement
ㅇ Information regarding the qualification, procedure, the due date, etc. of application for import quota is annually announced by each quota item by the Ministry of Economy, Trade and Industry, so it should be checked.
※ Information site about the detail of procedures (the Ministry of Economy, Trade and Industry/Trade Control/Import)
http://www.meti.go.jp/policy/external_economy/trade_control/index.html
2) Approval
ㅇ Types of Import Quota approval include performance quota, fishermen quota, consumer quota, FCFS(First Come First Served) quota, etc. With respect to application for initial approval for import quota, FCFS type is basically applied, which is required to pay attention to the due date of application.
ㅇ If Import Quota is approved by the Ministry of Economy, Trade and Industry, an Import Quota certificate is delivered to such applicant with 4 month of validity date. Accordingly, such applicant shall complete the procedure of import clearance within 4 months from the date of receiving the Import Quota certificate.
3) Import Clearance
ㅇ The person who intends on the import of items approved Import Quota shall declare import to customs office within 4 months from the date of receiving the Import Quota certificate, attached with such cerificate.
ㅇ The customs office shall confirm the Import Quota approval, customs import declaration and the actual goods, and if there is no problem in name, standard, quantity, etc., customs clearance will be allowed. After clearance, the importer should report the performance of import clearance to the Ministry of Economy, Trade and Industry.
ㅇ Importers of the goods subject to Import Quota can be allowed clearance only within the allocated range, and import exceeding the quota is not allowed.
■ Other Notes
ㅇ The person who obtained import quota approval may delegate the authority of import of such quota to a third party. In this case, the confirmation from the Ministry of Economy, Trade and Industry shall be obtained.
ㅇ Where the person who obtained import quota approval may not import part or whole amount of its approved quota, such importer shall return the quota amount which isn't imported to the Ministry of Economy, Trade and Industry(Importers aren't liable to import full amount of quota which was granted for sure, but in the case where import quota is falling short of quota amount, the importer may get a penalty in next quota and approval.).
ㅇ The Ministry of Economy, Trade and Industry imposes import embargoes within the range of 1 year to the importers who import goods without an approval even though approval shall be obtained for import of such goods.
ㅇ In principle, Import Quota is assigned by the amount of the goods. However, in cases that Quota by amount is difficult, it may be assigned by the price of the goods.
■ Legal Base
ㅇ Foreign Exchange and Foreign Trade Act
ㅇ Import Trade Control Order
ㅇ Import Public Announcement – Item I
※Import Public Announcement:
ㅇ Import Trade Control Ordinance
ㅇ There are many other notifications, announcements, notes on import, etc. that can be checked in the site below.
http://www.meti.go.jp/policy/external_economy/trade_control/01_seido/03_law/houreiitiran.html
