January 14, 2020 – The Japan Free Trade Agreement (FTA) provides for reduced-free treatment to certain agricultural and industrial goods, improving market access between the U.S. and Japan.
Although the FTA took effect on January 1, 2020, Customs and Border Protection (CBP) programing was not completed until January 14, 2020.
- Originating goods released or withdrawn from warehouse on January 14, 2020, or thereafter, may be filed with CBP.
- Post Summary Corrections (PSCs) are available for qualified goods entered between January 1 – 13, 2020, with duties paid.
To receive preferential treatment, the importer must certify that the goods are originating and meet Japan FTA requirements.
Duty was reduced or eliminated on 241 eight-digit Harmonized Tariff Schedule (HTS).
- Affected agricultural products include perennial plants and cut flowers, persimmons, green tea, chewing gum, and soy sauce.
- Affected industrial products include such items as certain machine tools, fasteners, steam turbines, bicycles, bicycle parts, and musical instruments.
Duty reductions are staged over a ten-year period, but not all products are reduced to a zero duty rate.
Things to Note:
- General Note 36 was added to the U.S. Tariff containing the rules of origin.
- A Special Program Indicator (SPI) of ‘JP’ will be used.
- Both the country of origin and the country of export must be Japan.
- There is a 10 percent de minimis provision for most products.
- Merchandise Processing Fee (MPF) is not exempt.
- HTS 8414.90.80 receives a reduced duty rate only when not for automotive air conditioners.
Certain products (particularly food and agricultural products) exported to Japan will benefit from duty reductions, and gain preferential market access through country specific (U.S.) quotas.
If you have any questions regarding the U.S. – Japan Free Trade Agreement, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs group at usregaffairs@livingstonintl.com