Basic information
Outline of the system
The system of tariff rate quota is stipulated in the Customs Tariff Law, the Temporary Tariff Measures Law, the Cabinet Order on Tariff Rate Quota (hereinafter referred to as "TRQ") System and other related regulations. Specific procedures below are stipulated in the above Cabinet Order.
(1) A list of products and their quantity under the TRQ system are determined and publicized.
(2) Applicants that intend to obtain allocations of quota for certain agricultural products need to apply to the MAFF.
(3) The MAFF allocates the quota to applicants by issuing certificates of quota.
(4) Importers need to submit their certificates to the Directors-General of Customs when they import those products under the TRQ system.
Product coverage
Agricultural products that are subject to the TRQ system are listed below.
ex04.01, ex04.03, ex04.04, ex18.06, ex19.01, ex21.01, ex21.06 Other dairy products for general use;
ex04.02 Skimmed milk powder (For other purposes), Skimmed milk powder (For school lunch), Evaporated milk;
ex04.04 Mineral concentrated whey, Whey and modified whey (For feeding purposes), Prepared whey (For infant formula);
ex04.05 Butter and butteroil;
ex07.13 Dried leguminous vegetables;
ex11.08, ex19.01 Starches, inulin, and their preparations;
ex12.02 Ground-nuts;
ex12.12 Tubers of konnyaku;
ex21.06 Prepared edible fat;
ex50.01, ex50.02 Silk-worm cocoons and Raw silk
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The TRQ system was established as a result of the Uruguay Round Agreements and is not intended to restrict the quantity or value of imports. The TRQ system charges a lower duty rate on imports of certain products with certificates up to a certain quantity and allows imports without certificates of TRQ by applying the out-of-quota duty rate.
Questions for products under restriction as to the quantity or value of imports
Please see Answers 6.1-6.11.
The system applies to products originating from which country?
The TRQ system applies to products originating in and coming from any country, except for prepared edible fat which has country specific quota for New Zealand.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The TRQ system is a statutory requirement based on the following law and regulation.
- The Customs Tariff Law (Article 9.2).
- The Temporary Tariff Measures Law (Article 8.5).
- The Cabinet Order on Tariff Rate Quota System.
- The Decree-law by the MAFF on TRQ Administration on Various Products such as Maize Products that are subject to the TRQ system are designated by the Cabinet Order. It is not possible for the government to abolish the system without a legislative approval.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
It is not possible for the government to abolish the system without a legislative approval.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
There is no system of registration of persons or firms permitted to engage in importation under TRQ.
What persons or firms are eligible to apply for a licence?
Only qualified importers are able to apply for TRQs. The information regarding the eligibility of importers to whom certificates of quota are issued is published on the website of the Ministry of Agriculture, Forestry and Fisheries, the Official Bulletin of Economy, Trade and Industry and the International Trade Bulletin.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Ministry of Agriculture, Forestry and Fisheries MAFF
Documentation requirements
What information is required in applications?
Information concerning application for TRQs has been published on the website of the Ministry of Agriculture, Forestry and Fisheries.
What documents is the importer required to supply with the application?
Information concerning application for TRQs has been published on the website of the Ministry of Agriculture, Forestry and Fisheries.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Issuing the license
Can a licence be granted immediately on request?
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Which administrative body is responsible for approving application of licences?
Must the applications be passed on to other organs for visa, note or approval?
Are there any other conditions attached to the issue of a licence?
There is no other condition attached to the issuance of a certificate of TRQ.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no licensing fee or administrative charge for applying for TRQ.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
No deposit or advance payment is required regarding the issuance of certificates of TRQ.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
No application is refused so long as that application meets the ordinary criteria.
Are the reasons for any refusal given to applicants?
Have applicants a right of appeal in the event of refusal to issue a licence?
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
Certificates are required upon actual importation.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There is no administrative procedure required prior to importation other than the issuance of a certificate of quota.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
In principle, the period of the validity of a certificate is one year or six months, or until the end of the fiscal year, and is stipulated in the Cabinet Order on TRQ System, etc.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
If importers do not utilize all or a part of allocated quotas, quotas allocated to those importers for the succeeding period can be affected.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
A certificate of TRQ may not be transferred
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
There is no requirement regarding foreign exchange.
Is a licence required as a condition to obtaining foreign exchange?
Is foreign exchange always available to cover licences issued?
What formalities must be fulfilled for obtaining the foreign exchange?
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
The information concerning allocation of quotas and formalities of filling application for TRQ is stipulated in the Decree-law and published on the website of the Ministry of Agriculture, Forestry and Fisheries, the Official Bulletin of Economy, Trade and Industry and the International Trade Bulletin. The amount of quotas and the names of importers to which quotas are allocated are published. There are no exceptions or derogations from the requirement.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
The size of quotas is determined on a yearly basis. There are some cases where the size of quota is determined on a yearly basis but licenses are issued for importers a few times a year. Most of the issued licences are valid until the end of the fiscal year.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Certificates of quota are not only issued to domestic producers, but also to importers and others. If importers do not actually use allocated quotas, quotas allocated to those importers in the succeeding period can be affected. Unused quotas are not added to quotas for a succeeding period.
The names of importers to whom certificates of quota are issued are published on the website of the Ministry of Agriculture, Forestry and Fisheries, the Official Bulletin of Economy, Trade and Industry and the International Trade Bulletin.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Publication of the information concerning procedures shall take place at least 90 days prior to the first day of accepting applications.
What are the minimum and maximum lengths of time for processing applications?
An application for TRQ will be processed as quickly as possible, within a maximum of 60 days after a receipt of the application.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Importers can declare an import subject to TRQ anytime on and after the date of the issuance of certificates of quota as long as the licenses are valid.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of the applications for TRQ is carried out by a single administration organ, the MAFF.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
The allocation of quotas is determined so that the necessary amounts of products are imported. However, in the case where the total amount applied exceeds the in-quota amount as a whole, certain elements could be taken into account to determine the allocation of quotas, such as a plan for usage of products concerned, the actual import and usage in the previous period. Several applications for quotas are examined simultaneously.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Certificates for quotas are also required in the case of prepared edible fat, where the country specific quota is established. Certificates are not issued automatically and the same procedures will apply with other products.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Not applicable.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Not applicable.