          
          
          
                          CUSTOMS CLEARANCE
          
          Customs Documentation:  While customs procedures have been 
          simplified in recent years, a number of documents are still 
          required for clearance through customs.  These include:  
          (1) for import quota items, an import license, usually 
          valid for four months from date of issuance; (2) an Import 
          Declaration Form (Customs Form C 5030); (3) shipping 
          documents such as a commercial invoice, packing list, and 
          an original and signed bill of lading, or, if shipped by 
          air, an air waybill; (4) a certificate of origin if the 
          goods are entitled to favorable duty treatment  
          (preferential or GATT rates; in practice, shipments from 
          the United States are routinely assessed the GATT or 
          "temporary" rates without a certificate or origin); (5) any 
          additional documents necessary as proof of compliance with 
          relevant Japanese laws and standards regulations.  To be 
          certain that all required documentation is provided at the 
          time your shipment arrives in Japan, consult with your 
          agent/importer.
          
              Commercial Invoice:  All shipments regardless of value 
              require at least two copies of the commercial invoice.  
              The invoice must be on shipper's letterhead and signed 
              by the shipper or an approved representative.  This 
              document is used to determine the value of goods being 
              imported and should include:  the complete name and 
              address of the shipper, full description of goods and 
              tariff classification, number of units shipped, unit 
              price, total price, and country or origin of goods.
          
              Packing List:  A packing list is recommended and should 
              provide the following information: exact description of 
              all items in the shipment, the gross and net weight of 
              each package, the exterior measurements of each 
              package, the total number of shipping containers, and 
              gross weight and gross measurement.  Units of measure 
              must be in metric on both documents and goods.
          
              Bill of Lading:  Three signed original bills of lading 
              should be sent through banking channels, and at least 
              two unsigned copies should be forwarded to the 
              consignee.  For goods sent by air, a standard set of 
              ten (one original and nine copies) should be made 
              available.
          
              Certificate of Origin:  A certificate of origin is 
              required only when the goods are to be granted duty 
              concessions under GATT or the Generalized System of 
              Preferences.  Such documents are often authenticated by 
              a local chamber of commerce or by a Japanese consular 
              or diplomatic official.
          
              Import License:  Most goods now qualify as "freely 
              importable" and do not require an import license.  The 
              only exception is for those commodities falling under 
              import quotas in which case the Japanese importer would 
              obtain the license (see section on quotas).
          
          Packing, Marking, and Labeling:  Straw packing materials 
          are prohibited.  The Japanese Measurement Law requires that 
          all imported products and shipping documents show metric 
          weights and measures.  There is no law requiring display of 
          the identity of the place of origin.  However, if labels 
          indicating origin are determined to be false or misleading, 
          the labels must be removed or corrected.  Otherwise the 
          goods will be returned to country of origin.  False or 
          misleading labels which display the names of countries, 
          regions, or flags other than the country of origin, and/or 
          names of manufacturers or designers outside the country of 
          origin are not permissible.
          
          There are no generic regulations for the marking of 
          packages, but certain goods such as food, drugs, cosmetics, 
          clothing, and electrical appliances are covered by specific 
          regulations outlined, respectively, in the Food Sanitation 
          Law, the Pharmaceutical Affairs Law, ordinances of the 
          Ministry of Health and Welfare, and the Electrical 
          Appliance Control Law.  As such regulations apply to 
          specific products, it is important to work with a 
          prospective agent/importer to ensure your product meets 
          requirements.
          
          In general, most labeling laws are not required at the 
          customs clearance stage, but at the point of sale.  
          Consequently, it is most common for Japanese importers to 
          affix a label before or after clearing customs.
          
          Health and Sanitary Requirements -- Inspection 
          Certificates:  Japanese health and sanitary regulations are 
          strictly enforced.  All imported plants and soils, animals, 
          meat, and viscera of animals must be accompanied by a 
          phytosanitary inspection certificate issued by the 
          government of the exporting country attesting that such 
          shipments are free from infectious materials or diseases. 
          Additional information is available from the Animal and 
          Plant Health Inspection Service, U.S. Department of 
          Agriculture, Hyattsville, MD 20782, (301) 436-8590 
          (Veterinary Services) and (301) 436-8537 (Plant Protection 
          and Quarantine).
          
          Japan's Food Sanitation Law requires that an Import 
          Notification Form must be submitted for all food products 
          at the time of import to ensure all standards governing 
          foodstuffs have been met.  The use of chemicals and other 
          additives in foods is severely restricted in Japan.  The 
          additive regulations follow a "positive list" approach 
          which indicates only those additives which are permitted, 
          their maximum tolerable amount, and the foods in which the 
          additives may be used.  Cosmetics are governed by similar 
          restrictions covering permissible ingredients.  Additional 
          information on specific regulations is available through 
          the U.S. Department of Agriculture, Office of Food Safety 
          and Technical Services at (202) 720-9408, or the U.S. 
          Department of Commerce, Japan Export Information Center at 
          (202) 377-2425.
          
          Import Quotas:  Japan has in effect two quota systems:  a 
          quantity allocated quota and a tariff quota.  The quantity 
          allocated quota is applied to imports of some dairy 
          products, fish, grain staples, and coal.  Import of these 
          items requires an Import Quota Certificate issued by the 
          Ministry of International Trade and Industry through an 
          import notice system granting allocation twice a year. The 
          quota certificate is valid for four months.  Once the 
          certificate is obtained, an application for approval is 
          then made to an authorized foreign exchange bank which 
          issues the import license.
          
          A tariff quota is in effect for cheese, maize, oats, malt, 
          preparations of cocoa without sugar, some tomato products, 
          pineapples, some alcohol materials used as base of 
          alcoholic beverages, leather, and leather footwear.  For 
          items subject to an import tariff quota, a lower primary 
          duty rate is applied until the quantity exceeds the quota 
          threshold at which time a higher duty is assessed.  To 
          apply for the primary duty rate an importer must obtain a 
          quota allocation in advance from the Ministry of 
          International Trade and Industry.  Current quota volumes 
          and duty rates are listed in the yearly publication of the 
          Japanese tariff schedule.
          
          Tariffs:  According to the Japanese Government, the average 
          tariff is now one of the world's lowest at 3.4 percent.  
          However, import duties on some agricultural items and 
          certain manufactured goods remain relatively high.  As part 
          of their import incentive program, the Japanese expanded 
          the list of duty-free manufactured products in April 1990 
          by 1,004 items and reduced the tariff on four more. 
          Consequently, almost all machinery imports are now tariff 
          free.
          
          Tariffs are administered by the Customs Bureau of the 
          Ministry of Finance.  Japan is a member of the Harmonized 
          System Convention and therefore shares the same 
          classification system as the United States up to 
          six-digits.  Duties are assessed on the c.i.f. value (cost, 
          insurance, and freight) at ad valorem or specific rates, 
          and in a few instances are charged a combination of both.
          
          Japan's tariff schedule has four columns:  general, GATT, 
          preferential, and temporary.  Goods from the United States 
          are charged GATT rates unless a lesser temporary rate has 
          been instituted. Japan's preferential system of tariffs 
          grants lower or duty-free rates to products imported from 
          developing countries.
          
          In addition to the customs duty, a 3 percent consumption 
          tax (general excise tax) (6 percent on autos) is levied on 
          all goods sold in Japan and payment is required at the time 
          of import declaration. The consumption tax is assessed on 
          the c.i.f. value of the product plus the import duty.  
          Refer to the section on taxation for more information.
          
          Duties and consumption tax are payable when making an 
          import declaration at the time of customs clearance by the 
          importer.  The Import Declaration Form (Customs Form C 
          5030) is filled out by the importing company and is used as 
          an import declaration as well as a tax payment declaration 
          form.
          
          Sample and Advertising Materials:  Japan is a member of the 
          International Convention to Facilitate the Importation of 
          Commercial Samples and Advertising Materials under the ATA 
          Carnet System.  Use of a carnet allows goods such as 
          commercial and exhibition samples, professional equipment, 
          musical instruments, and TV cameras to be carried or sent 
          temporarily into a foreign country without paying duties or 
          posting bonds.  A carnet should be arranged for in advance 
          by contacting a local office of the United States Council 
          for International Business or the New York office at (212) 
          354-4480.  Fees are based on the value of goods to be 
          shipped.  Processing time takes generally five business 
          days.
          
          Advertising materials, including brochures, films, and 
          photographs, may enter Japan duty free.  A commercial 
          invoice for brochures and literature for free distribution 
          must have either the actual or estimated value of the cost 
          of production.  Do not use the term "no charge."
          
          Articles intended for display at trade fairs and similar 
          events are also permitted to enter duty free but are 
          required to be reexported within one year.  A commercial 
          invoice for these goods should be marked "no commercial 
          value, customs purposes only" and "these goods are for 
          exhibition and are to be returned after conclusion of the 
          exhibition."
          
          Free Trade Zones and Bonded Areas:  Japan has one free 
          trade zone at Naha on Okinawa.  In addition, there are five 
          kinds of bonded areas:  designated bonded areas, bonded 
          sheds, bonded warehouses, bonded factories, and bonded 
          exhibition sites.  Goods may be stored in bonded areas for 
          up to two years; however, storage fees are high.  Duties 
          are payable only when the goods are cleared through 
          customs.
          
          
