Glossary

Updated: July 2024, 12

EPA

EPA stands for Economic Partnership Agreement, which is an agreement that promotes liberalization and facilitation of trade, including the elimination and reduction of tariffs, with the aim of strengthening the economy. The country of origin certification system utilizes this agreement to receive tax reductions or tax exemptions.

Certificate of origin with third party certification

Certificate of origin under EPASpecific origin certificateis. Using this certificate, you can receive a lower customs duty rate when exporting.

Certificate of origin based on self-declaration system

A certificate of origin certified by a third party indicates the origin with a certificate of origin issued by the Japan Chamber of Commerce and Industry, but in the self-declaration system, the exporter, etc. must submit a declaration that the exported product is of origin. How to create and submit.

Click "About the self-reporting system" below to check the details of self-reporting accuracy.

rules of origin

Rules of origin are rules for determining the country of origin of goods (=the "nationality" of goods). There are cases where the application or non-application of tariff policies such as EPA (Economic Partnership Agreement) preferential tariffs depends on the country of origin of the goods, so in such cases, the country of origin is determined using rules of origin. That will be necessary.

　
The EPA stipulates rules of origin regarding standards for certifying products as originating products, procedures for certification and declaration to customs, etc., with the aim of preventing detour imports and appropriately applying EPA tax rates. . In order to obtain a specific certificate of origin, the product must meet the rules of origin stipulated by the EPA.

The examination to determine whether a product is recognized as an originating product is carried out by requesting an originating product determination from the Japan Chamber of Commerce and Industry. Different countries have different rules, and different rules apply depending on the product. Origin is determined by code changes and the percentage amount of origin for the product. Rules of origin are determined for each agreement and HS code of exported products.

HS code

This is a code given to each item based on the "International Convention on the Unified System for the Name and Classification of Goods," and the code varies depending on the material and form of the product.

Up to 6 digits are universal,
It consists of "class (=first 2 digits)", "section (=first 4 digits)", and "item (=first 6 digits)".

In addition to exporting products, when applying CTC rules, it is also necessary to check the HS code of raw materials.

CTC rules (customs classification change standards)

CTC rules refer to tariff classification change standards, which compare the HS code of raw materials with the HS code of exported products (finished products), and recognize origin when a prescribed HS code change has been made. It's a rule.

CTC rules have three levels of modification.

①CC (Change of Chapter): Change of category (2 digits) level

②CTH (Change of Tariff Heading): Change of term (4 digits) level

③CTSH (Change of Tariff Subheading): Change of issue (6 digits) level

For example, in the case of the CC rule, if there is a change in the first two digits of the HS code between the raw material HS code and the export product HS code, origin can be indicated. When checking the origin using CTC rules, it will be smoother if you follow the flow below.

① Check the applicable rules and check how many digits need to be changed between the raw material HS code and the export product HS code.

② Confirmation of primary materials (raw materials)

③ Confirmation of raw material HS code

④ Check if applicable rules are met

VA rules (value-added standards)

The VA rule is a rule that recognizes origin when manufacturing by combining non-originating and originating materials, if the value added in Japan exceeds the standard value. The difference from the CTC rules is that added value is the standard, so the judgment is based on the breakdown amount of exported products.

For example, in the case of item-specific rules for added value of 40% or more,Non-material costs (production costs, export costs, expenses)+The rule is that origin can be proven if the total amount of original materials is 40% or more of the total price (FOB or ex-factory price). When checking origin, first check the applicable regulations, and then check whether the specified added value is met.

Place of origin

Raw materials are materials (primary materials) that are purchased directly by the producers of export products.

In principle, only primary materials are listed as raw materials in the origin certificate procedure.

Materials that make up primary materials (secondary materials) do not need to be counted as raw materials.

For example, if you are purchasing tires and engines to produce cars, these are primary materials.

The screws and valves that make up the engine are secondary materials purchased by the engine manufacturer.

Also, if you have five screws of the same material and purpose but of different sizes, combine them into one.

It may be possible to declare it as one type of raw material.

Machines with many component parts are often combined into fewer parts than the number of parts used in manufacturing.

supplier certificate

This is a common name for documents provided by suppliers that are used to clarify that materials and parts are original products.
　

Contents that need to be entered include the date of creation of the document, the name of the supplier of the manufactured goods, the name of the manufacturer, address, the name of the person in charge, the name of the department, contact information, the name of the agreement used, and the manufacturing A statement to prove that the manufactured goods are originating goods, the name of the manufactured goods (in English), information that can identify the goods (serial number, model number, etc.), HS code, judgment criteria, place of production (factory name) ), and the format is optional.

Company registration (third party certification system)

Third-party certified certificates of origin are issued by the designated organization, the Japan Chamber of Commerce and Industry. In order to issue the certificate, it is necessary to register the company with the Japan Chamber of Commerce and Industry. Once you register your company, you will be able to apply online using the Japan Chamber of Commerce and Industry's Class 2 Specified Origin Certificate Issuance System. Company registration is free, but it is valid for two years, so you need to check that it has not expired before proceeding with the procedure.　

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For applications for a Certificate of Origin, please contact Support Administrative Scriveners Corporation.