US-Japan trade agreement enters into force Bookmark has been added
US-Japan trade agreement enters into force
Japan Inbound Tax & Legal Newsletter February 2020, No. 51
The US-Japan Trade Agreement (agreement) and the US-Japan Digital Trade Agreement entered into force on 1 January 2020. This article will discuss the trade agreement.
Under the agreement, Japan is allowed to import goods from the US at lower than standard tariff rates (i.e., preferential tariff rates) if the goods meet the applicable “rules of origin” required by the agreement. Rules of origin requirements determine the “nationality” of a product. Although the preferential tariff rates may vary depending on the type of goods traded, tariffs on Japanese and US products are eliminated or gradually reduced annually as from 1 January 2020.
To receive preferential tariff treatment, importers are required to prepare and provide to the customs office a certificate of origin and supporting documentation.
This newsletter explains the following topics;
- Examples of tariff reduction under the agreement
1. US products imported into Japan
2. Japanese products imported into the US
- Rules of origin requirements to apply preferential tariff rates
>> To read this topic in Japanese, please click here
* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.