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1506 Graduation /Exclusion from the GSP scheme (FAQ)

Aiming to ensure a wider uptake of GSP preferences, Japan prepares the system of “graduation” to a country having achieved economic development at developed country level, and “product-by-exclusion” to a product with high level of global competitiveness.

1. Partial Graduation

Considering its global competitiveness, the products originating from the beneficiary of a) which satisfy b) shall be excluded from application of the preferential treatment.

a) Criterion for countries/territories
The beneficiary is classified as a high income economy in the “World Bank Statistics” of the previous year.

b) Criterion for products
The value of Japan’s imports of the product originating from the beneficiary exceeds one billion yen and 25% of the total value of Japan’s imports of the product from all over the world in the trade statistics of two years ago (For example, in case of FY2011, the CY2009 statistics should be considered.).

After annual review at the beginning of each fiscal year, preferential tariff treatment shall be granted again when any of the above criteria is not satisfied.

2. Entire Graduation

A country or territory shall be excluded from the beneficiaries of Japan’s GSP scheme, when the country or territory has been classified in the “World Bank Statistics” as a high income country for three consecutive years.

In a case where the country or territory which had been once excluded from the beneficiaries has not been classified as a high income country for three consecutive years, the country or territory shall be designated to be a beneficiary again if the country or territory requests so.

(Article 8-2-2 of the Temporary Tariff Measures Law, Article 25-2-1 and 25-2-2 of the Cabinet Order for Enforcement of the Temporary Tariff Measures Law)

3. Product-by-Exclusion

A product originating from a beneficiary is excluded from the product coverage of the preferential treatment for three years. Conditions for this exclusion are as follows;

1) The average value of Japan’s import of a product originating from a beneficiary for the past three years exceeds 1.5 billion yen and 50% of the total value of Japan’s imports of the product from all over the world (For example, in the case of FY2011, statistics of the CY2007,CY2008 and CY2009 should be considered.).

However, either essential export products for a beneficiary that account for more than 25% of total imports granted under preferential treatment from that beneficiary or products for which Japan agreed to provide tariff concession at the rate more favourable than that of GSP in virtually concluded EPAs are not excluded.

Products under the special preferential treatment for LDCs are not subject to this exclusion.

By this condition, the following items originating from the respective country are currently excluded from the preferential tariff treatment.

(1)Agricultural and fishery products (HS1-24)
Tariff heading
Major items
Country
0706.90ex Burdock（fresh or chilled） China
0709.59ex Matsutake（fresh or chilled） China
0712.90-2ex Dried bamboo shoots China
0910.10-2-(2)ex Ginger ( not put up in containers for retail sale, other than those provisionally preserved in brine, in sulphur water or in other preservative solutions) (fresh) China
0910.10-2-(2)ex Ginger (not put up in containers for retail sale, other than those provisionally preserved in brine, in sulphur water or in other preservative solutions) (other than fresh) China
1211.90-4ex Others of other plants and parts of plants, of a kind used primarily in perfumery, in pharmacy or for in insecticidal, fungicidal or similar purposes (fresh or dried) (other than sandal woods and job's tears) China
1604.11ex Salmon (prepared or preserved) (other than in airtight containers) China
1604.15 Mackerel (prepared or preserved) China
1604.19ex Eel (prepared or preserved) China
1604.19ex Other fish (prepared or preserved) China
1605.10-2ex Crab (prepared or preserved) (other than in airtight containers) (other than those containing rice) China
1605.90-2-(3)ex Scallops (prepared or preserved) (other than those smoked) China
1605.90-2-(3)ex Other molluscs (prepared or preserved) (other than those smoked) (other than in airtight containers) China
2001.90-2-(5)ex Ginger (prepared or preserved by vinegar or acetic acid) (not containing added sugar) China
2101.11-2-(2) Extracts, essences and concentrates of coffee (not containing added sugar) (other than instant coffee) Brazil
2206.00-2-(2)-B-(b) Other fermented beverages (other) China

(2)Industrial products(HS25-97)
Tariff heading
Major items
Country
2704 Coke and semi-coke of coal, etc. China
2809 Diphosphorus pentaoxide; phosphoric acid; polyphosphoric acids China
2825 Hydrazine, metal oxides, etc. China
2827 Chlorides, bromides, iodides, etc. China
2834 Nitrites; nitrates China
2835 Phosphinates, phosphonates, polyphosphates, etc. China
2839 Silicates, etc. China
2841 Salts of oxometallic or peroxometallic acids China
2843 Inorganic or organic compounds of precious metals, etc. China
2849 Carbides China
2904 Sulphonated derivatives of hydrocarbons, etc. China
2938 Glycosides and derivatives China
3505 Dextrins, other modified starches, etc. Thailand
3604 Fireworks, signalling flares and other pyrotechnic articles China
3801 Artificial graphite, preparations based on carbon, etc. China
3802 Activated carbon, etc. China
3806 Rosin, resin acids, run gums, etc. China
3814 Organic composite solvents, prepared paint or varnish removers, etc. China
3816 Refractory cements, etc. China
3923 Articles of plastics for the conveyance or packing of goods, etc. China
3924 Household articles and toilet articles (of plastics) China
3926 Other articles of plastics China
4412 Plywood, vaneered panels and similar laminated wood China
4419 Tableware and kitchenware, of wood China
4420 Wood marquetry and inlaid wood, etc. China
4421 Other articles of wood China
4601 Plaits and similar products of plaiting materials, etc. China
4602 Basketwork, etc. China
5107 Yarn of combed wool, not put up for retail sale China
5513 Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170 g/㎡ China
5607 Twine, cordage, ropes and cables China
5608 Knotted netting, fishing nets and other made up nets, of textile materials China
5702 Carpets and other textile floor coverings, woven China
5703 Carpets and other textile floor coverings, tufted China
5705 Carpets and other textile floor coverings ( not specified or included elsewhere) China
5806 Narrow woven fabrics, etc. China
6213 Handkerchiefs (not knitted or crocheted) China
6214 Shawls, scarves, mufflers, etc. (not knitted or crocheted) China
6216 Gloves, mittens and mitts (not knitted or crocheted) China
6217 Other made up clothing accessories (not knitted or crocheted) China
6301 Blankets and travelling rugs China
6302 Bedlinens, etc. China
6303 Curtains, etc. China
6304 Other furnishing articles China
6305 Sacks and bags, of a kind used for the packing of goods China
6306 Tarpaulins, tents, sails for boats, etc. China
6307 Other made up articles of textile materials China
6505 Hats (knitted or crocheted) and hair-nets China
6506 Other headgear China
6601 Umbrellas China
6702 Artificial flowers, foliage, fruit, etc. China
6902 Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods China
6907 Unglazed ceramic flags and paving, hearth or wall tiles; unglazed ceramic mosaic cubes and the like China
6908 Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes and the like China
6911 Household articles and toilet articles, of porcelain or china: China
6912 Ceramic household articles and toilet articles, other than of porcelain or china China
7116 Articles of pearls, precious stones, etc. China
7406 Copper powders and flakes China
7411 Copper tubes and pipes China
7607 Aluminium foil not exceeding 0.2mm China
7907 Other articles of zinc China
8104 Magnesium and articles thereof China
8110 Antimony and articles thereof China
8111 Manganese and articles thereof China
8211 Knives with cutting blades, other than knives of heading 82.08, and blades therefor China
8213 Scissors and blades therefor China
8215 Kitchen or tableware, e.g., spoons, of base metal China
8301 Padlocks, locks, etc. of base metal China
8302 Base metal mountings, fittings, etc. China
8306 Bells, statuettes, frames, mirrors, etc. of base metal China
8544 Insulated wire, cable and other insulated electric conductors China
9003 Frames for spectacles and parts thereof China
9404 Mattress supports, articles of bedding , etc. China
9405 Lamps, lighting fittings, etc. and parts thereof China
9503 Dolls, toys, models, etc. China
9505 Festive, carnival or other entertainment articles China
9506 Articles and equipment for general physical exercise, etc. China
9507 Line fishing tackle, etc. China
9603 Brooms, brushes, paint pads and rollers, etc. China
9608 Pens, e.g., ball point pens, sliding pencils, etc. China
9613 Cigarette lighters and other lighters and parts thereof China
9617 Vacuum flasks and other vacuum vessels and parts thereof China

2) When a country or territory is judged to be against the conservation of certain species of fish by a Regional Fisheries Management Organization (RFMO), the products of the species originating from the beneficiary are excluded from the preferential treatment.

When the product which had been excluded due to 1) has not satisfied these criteria after three-years-exclusion and when the abovementioned judgement regarding 2) on the beneficiary be changed, preferential tariff treatment shall be granted again to the excluded products.

For consultations on customs procedures, please contact the nearest Customs Counselor.
Please see No. 9301 for inquiries.

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