Under its GSP (Generalized System of Preferences) scheme, Japan applies reduced tariffs to designated import products originating from developing countries and territories, with the aim to help them increase export income, advance industrialization and promote economic development.

  Japan’s GSP scheme, which started in August 1971, designates beneficiary countries/territories , beneficiary products, and their respective rates of tariffs under the Temporary Tariff Measures Law and the Cabinet Order for Enforcement of the Temporary Tariff Measures Law.

  Those products on GSP are divided into agricultural/fishery products and industrial products, and the rules on suspension of preferential tariff treatment are provided for each category.

  As for agricultural/fishery products, specific items and respective preferential rates of tariffs have been designated in the Temporary Tariff Measures Law.  The Escape Clause is prepared for suspension of preferential tariff treatment for these products.
  By this Clause, application of the preferential tariff may be suspended temporarily when increased preferential imports of a product  damage or threaten Japan’s domestic industry.

  As for industrial products, in principle all products except some products (leather clothing, footwear, some of ceiling system-applied products, etc) are given duty-free treatment. The ceiling system is prepared for suspension of preferential treatment for certain industrial products. Under the system, ceilings of preferential imports are set at the beginning of each fiscal year for each designated product, excess beyond the ceiling detected from the monthly performance surveillance for designated products shall result in the suspension of preferential treatment for the rest of the fiscal year.
  Suspension of preferential treatment on industrial products is also subject to the Escape Clause, but ceiling-applied products are excluded from the coverage of the clause.

  As for products originating from least developed countries (LDCs) which are designated by the Temporary Tariff Measures Law to be eligible for special preferential treatment, they are basically given the duty-free, quota-free (DFQF) market access. The prepared rule on suspension of preferential treatment for agricultural/fishery products and industrial products, is only the Escape Clause.

  Advanced beneficiaries which are reviewed and judged to have attained certain economic development equivalent to that of developed countries are supposed to be excluded from application of the preferential treatment. (Please see code# 1506 “Exclusion or Graduation from the GSP scheme.”)

 In order for any products to be eligible for the preferential tariff treatment, in principle a “Combined Declaration and Certificate of Origin (Form A)” issued by the beneficiary should be needed. (See code# 1502 “Certificate of origin for preferential tariff treatment.”)

   For information on beneficiaries for GSP treatment and those for special preferential tariff to LDCs, please see the list of beneficiaries (code No.1504 "List of GSP beneficiary countries and territories").