Trade Remedy System
Overview
Trade remedy system collectively refers to measures to impose additional customs duties on ordinary customs duties, with respect to designated products, suppliers, and supplying countries, etc., under special circumstances such as unfair trade practices or a sudden increase in imports. Trade remedy measures include retaliatory duties, countervailing duties, anti-dumping duties, and safeguard duties. These measures are intended to protect and provide remedies to domestic industries and are introduced in many countries, including Japan. International agreements, including the World Trade Organization (WTO) Agreements, set out the main requirements for them so that they are applied in a manner not to distort trade. Japan’s trade remedy system is provided for in the Customs Tariff Act, etc., in a manner consistent with the international agreements.
Depending on the types of these measures, their requirements and procedures differ as follows.
Retaliatory duties constitute a form of countermeasure under the WTO dispute settlement procedures and are imposed with the authorization of the WTO, in principle.
Countervailing duties, anti-dumping duties, and safeguard duties (safeguard measures) are imposed where sufficient evidence exists, and they are determined to be necessary, following investigations conducted in cooperation among the Ministry of Finance, the Ministry of Economy, Trade and Industry, and the competent ministries for the products concerned, provided that the relevant requirements are met. In addition, for countervailing duties or anti-dumping duties, where injury to a domestic industry exists, a person representing the domestic industry may request the government to impose such duties.
- Retaliatory Duty
Retaliatory duties are additional customs duties imposed on products imported from a country that applies discriminatory and disadvantageous treatment to goods exported, etc., from Japan.
They are provided for in Article 6 of the Customs Tariff Act and are imposed:
- on designated products from a designated supplying country;
- in an amount not exceeding the customs value of the products; and
- with the authorization of the WTO, in principle.
Further details are available on the Japanese page.
- Countervailing Duty
Countervailing duties are additional customs duties imposed on imported products that have benefited from subsidies granted by the exporting country.
They are provided for in Article 7 of the Customs Tariff Act and are imposed:
- on designated products, suppliers or supplying countries;
- for a designated period; and
- in an amount not exceeding the amount of the subsidy.
Further details are available on the Japanese page.
- Anti-Dumping Duty
Anti-dumping duties are additional customs duties imposed on imported products sold at an export price (dumping price) lower than the domestic sales price in the exporting country, etc. (normal value).
They are provided for in Articles 8 and 8-2 of the Customs Tariff Act and are imposed:
- on designated products, suppliers or supplying countries;
- for a designated period; and
- in an amount not exceeding the dumping margin (the difference between the normal value and the dumping price).
Further details are available on the Japanese page.
- Safeguard Duty (Safeguard Measure)
Safeguard duties are additional customs duties imposed on products imported from all countries in cases where imports of such products have increased due to unforeseen developments.
They are provided for in Article 9 of the Customs Tariff Act and are imposed:
- on designated products;
- for a designated period; and
- in an amount not exceeding the difference between the appropriate price of domestic products and the domestic price of the imported products.
In addition, where a measure is taken by another country under the WTO Agreement on Safeguards, rebalancing measures are permitted. Such measures may take the form of the suspension of concessions or the imposition of additional customs duties, in an amount not exceeding the customs value (i.e., not exceeding 100% ad valorem) of the goods concerned, with the designation of the country, the goods, and the period.
Further details are available on the Japanese page.
Relevant laws and regulations
Products under investigations