U.s. Japan Agreement

U.S. President Donald Trump signed a proclamation on December 26, 2019, in which he implemented two separate trade agreements with Japan (together the agreements) 1. The U.S.-Japan trade agreement (trade agreement) will abolish or reduce tariffs on agricultural and industrial products and set preferential quotas for U.S. products. The Digital Trade Agreement between the United States and Japan is a separate agreement between the two countries, which will provide guidance for priority areas of digital trade. The agreements came into force on January 1, 2020 and are expected to serve as the basis for further negotiations for a broader U.S.-Japan free trade agreement.2 The U.S.-Japan Trade Agreement (USJTA) came into force on January 1, 2020. In that agreement, Japan committed to grant the United States significant market access by phasing in most tariffs, implementing significant tariff reductions or allowing a certain volume of imports at a lower price. Once the USJTA is fully implemented, nearly 90% of U.S. food and agricultural products imported into Japan will be duty-free or preferential tariff access. The full text of the agreement and fact sheets are available on the website of the U.S. Trade Representative (USTR).

Within four months of its implementation, President Trump and Prime Minister Abe will relocate their efforts for a broader trade deal. This broader agreement aims to cover both tariff and non-tariff barriers, including tariffs and restrictions on trade in services and investment. 2. ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/ambassador-lighthizer-lauds-japan. 6. EY Global Tax Alert, USTR grants new exclusions for lists 1, 2 and 3 for products originating in China; The United States and Japan agree on goods trade and digital trade on September 27, 2019. 12. General Note 4 (a) (k) Of Schedule II of the trade agreement. ustr.gov/sites/default/files/files/agreements/japan/Annex_II_Tariffs_and_Tariff-Related_Provisions_of_the_United_States.pdf.

Products obtained entirely in the United States generally fall within preferential tariff treatment under the USJTA. Products using materials from other countries may also be considered depending on the type of product and the classification of the customs code. For many of these products, the standard rule is a change in the tariff classification at the chapter or double-digit level (for example. B, HS 10 cereal with SH 11 flour), which occurs in the United States. Products subject to different rules are described in Appendix 1 of the treaty text. At the time of importation, Japanese law requires Japanese importers to submit a statement confirming the origin of the product. In some cases, U.S. exporters may provide additional information directly to Japan Customs, but the initial declaration must come from the importer.

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