26 September 2014, BITEC Bangkok, Thailand

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1 APTFF Capacity Building Workshop on Implementing Trade Facilitation Measures: Perishable Goods & Single Window 26 September 2014, BITEC Bangkok, Thailand

2 Japan s Effort on Trade Facilitation concerning Perishable Products Tokio YAMAOKA

3 Contradictory Demands Trade Facilitation vs. Human Health Trade Facilitation vs. Prevention of Illicit drugs, Guns, Control on OGA compliance, etc. 1

4 Main topics I. Brief Introduction of NACCS 1. Features of NACCS 2. Global initiative II. TFA provision on Perishable Products 1. Implementation of the provision 2. Immediate Release upon Arrival III. Further Trade Facilitation Measures 1. Development of Single Window in Japan 2. Procedures on Foods at Ministry of Health, Labour and Welfare 3. Paperless Certification IV. Further Challenges for Developing Countries 2

5 I. Brief Introduction of NACCS 1.Features of NACCS 3

I.1 Features of NACCS Air-cargo Air cargo agents Flight caterers & suppliers

companies Submitting arrival/departture report, Manifest and Passenger List CI CI CI

Information related business Settlement Banks Submitting arrival/departture report,

Information related business Settlement Banks Sea-cargo NVOCC Shipping brokers

6 I.1 Features of NACCS Air-cargo Air cargo agents Flight caterers & suppliers Consolidators Warehouse operators Customhouse brokers Importers /Exporters Airline companies Submitting arrival/departture report, Manifest and Passenger List CI CI CI and Notice of permission Import/Export Declaration And Notice of permission Information related business Settlement Banks Submitting arrival/departture report, Manifest and Passenger List NACCS Declaration/Reporting MOF(Customs),MAFF, MHLW, MLIT, MOJ, METI,etc. 4 Shipping companies CI CI Shipping agents CI and Notice of permission CI and Notice of permission Import/Export Declaration And Notice of permission Information related business Settlement Banks Sea-cargo NVOCC Shipping brokers Container yard operators Warehouse operators Customhouse brokers Importers /Exporters *CI(Cargo Information)

platform to the public and private operations - Indispensable

7 I.1. Features of NACCS -The core system in Japanese import/export providing comprehensive logistics information platform to the public and private operations - Indispensable infrastructure for Japanese economy providing standardized and unified procedures 5

8 I. 1 Features of NACCS -Stable Operation -Expedited and Efficient Service Reliable Service: -24h-365days -Operating ratio of more than 99.99% -Duplex Server System -Backup Center for Natural Disaster -Customer Service: 24h 365 days Help Desk Excellent Services: -Fast Response: Less than one second -Cargo Tracking -Utilization of input data from other users -Automatic calculation of exchange rates and duties -Real Time Tax Payment System from Bank Account - Immediate release upon arrival -Single Window System 6

I.2 Global Initiative - VNACCS - From 1 April 2014, VNACCS (Viet Nam Automated Cargo and Port Consolidated System) was launched together with VCIS (Viet Nam Customs Information System) assisted by

9 I.2 Global Initiative - VNACCS - From 1 April 2014, VNACCS (Viet Nam Automated Cargo and Port Consolidated System) was launched together with VCIS (Viet Nam Customs Information System) assisted by Japan Customs and JCIA (Japan International Cooperation Agency). *March 2012: Conclusion of E/N (Exchange of Note) between Japan and Viet Nam Government : Conclusion of G/A (Grant Agreement) between JICA and Viet Nam Government Facilitation of flow of goods in Viet Nam - With high stability and quick response GDVC:General Department of Viet Nam Customs Promotion of Paperless Clearance - Adoption of electronic signature

-Auto calculation of Customs value Facilitation of duty payment method - Auto debit function from banks Realization of

10 I.2 Global Initiative - VNACCS - Introduction of declaration preparation assistance function -Auto calculation of Customs duties by inputting HS number etc. -Auto calculation of Customs value Facilitation of duty payment method - Auto debit function from banks Realization of Single Window - Provide function of connecting with other government agencies MACCS April 2014: Conclusion of E/N between Japan and Viet Nam Government : Conclusion of G/A between JICA and Viet Nam Government

11 II. TFA provision on Perishable Products 1. Implementation of the provision *not official TFA Provision a Release within the shortest possible time b Provide for the release outside the business hours Priority in scheduling any examination Measures by Japan Customs* Priority is given to Customs clearance of perishable products in documentary and physical examination. (In general) Customs clearance is available outside the business hours. Priority is given to the examination of live animals and perishable goods 9

12 II. 1. Implementation of the provision *not official TFA Provision Priority in scheduling any examination Arrangement of proper storage pending their release -Release at storage facilities Communication on the reasons for the delay in the release 10 Measures by Japan Customs* Priority is given to the examination of live animals and perishable goods -During Customs clearance procedure, foreign goods should be stored in bonded (Hozei) area. However, upon approval, goods could be stored in other than bonded area. -It is possible to lodge import declaration and get permission for release. Oral communication is done.

13 II. 2. Immediate Release upon Arrival (Air Cargo) 11

14 III. Further Trade Facilitation Measures 1. Development of the SW in Japan [Problems] Necessary to submit similar but different documents for various government agencies Users had to manage multiple IDs, PWs Political impetus, political leadership Cabinet decision to enhance paperless environment regarding import/export and port procedures (July 2001) International logistics Reform Plan (Shiokawa Initiative) presented by Finance Minister to Cabinet members (August 2001) Coordination mechanism across agencies Liaison Council for Import/export and Port Proceduresrelated Ministries and Agencies (September 2001 July 2003) 12

15 III 1. Development of the SW in Japan [Jul to Oct.2008] PORT EDI (PORT PROCEDURES MLIT) (QUARANTINE MHLW) Shipping Company PORT EDI PORT PROCEDURES CREW LANDING SUPPORT SYSTEM (IMMIGRATION MOJ) Sea-NACCS MOF CUSTOMS PORT PROCEDURES FOOD QUARANTINE(FAINS) MHLW Shipping Company Importer Exporter Airline Company AIR PLANES ARRIVAL/DEPARTURE NOTIFICATION PROCEDURES IMPORT/EX PORT POCEDURES MANUAL ANIMAL QUARANTINE(ANIPAS) MAFF PLANT QUARANTINE (PQ-NETWORK) MAFF TRADE CONTROL(JETRAS) METI Air-NACCS MOF CUSTOMS QUARANTINE MANUAL IMMIGRATION

16 III 1. Development of the SW in Japan [Oct.2008 to Feb.2010] Shipping Company Importer Exporter IMPORT/EXPORT PROCEDURES PORT PROCEDURES Common Portal (NACCS) Sea-NACCS (CUSTOMS PROCEDURES MOF) (PORT PROCEDURES MLIT) (QUARANTINE MHLW) (IMMIGRATION MOJ) TRADE CONTROL(JETRAS) METI FOOD QUARANTINE(FAINS) MHLW ANIMAL QUARANTINE (ANIPAS) MAFF PLANT QUARANTINE (PQ-NETWORK) MAFF Airline Company AIR PLANES ARRIVAL/DEPARTURE NOTIFICATION PROCEDURES MANUAL Air-NACCS MOF CUSTOMS QUARANTINE MANUAL IMMIGRATION

17 III 1. Development of the SW in Japan [Feb.2010 to Oct.2013] NACCS (CUSTOMS PROCEDURES MOF) (PORT PROCEDURES MLIT) (QUARANTINE MHLW) (IMMIGRATION MOJ) (TRADE CONTROL METI) ALL USERS Common Portal (NACCS) IMPORT/EXPORT PROCEDURES PORT PROCEDURES FOOD QUARANTINE (FAINS) MHLW ANIMAL QUARANTINE (ANIPAS) MAFF PLANT QUARANTINE (PQ-NETWORK) MAFF

III 1. Development of the SW in Japan [Oct.2013 - ] ALL USERS In Oct.

MAFF MINISTRY OF AGRICULTURE,FORESTRY AND FISHERIES METI MINISTRY OF ECONOMY,TRADE AND INDUSTRY MLIT MINISTRY OF LAND,INFRASTRUCTURE,

18 III 1. Development of the SW in Japan [Oct ] ALL USERS In Oct.2013, ALL OGA system had been integrated in NACCS MOJ MINISTRY OF JUSTICE MOF MINISTRY OF FINANCE MHLW MINISTRY OF HEALTH,LABOUR AND WELFARE MAFF MINISTRY OF AGRICULTURE,FORESTRY AND FISHERIES METI MINISTRY OF ECONOMY,TRADE AND INDUSTRY MLIT MINISTRY OF LAND,INFRASTRUCTURE, TRANSPORT AND TOURISM NACCS (CUSTOMS PROCEDURES MOF) (PORT PROCEDURES MLIT) (QUARANTINE MHLW) (IMMIGRATION MOJ) (TRADE CONTROL METI) FOOD QUARANTINE (FAINS) MHLW ANIMAL QUARANTINE (ANIPAS) MAFF PLANT QUARANTINE (PQ-NETWORK) MAFF

19 III. 1 Development of SW at a Glance Year Customs Procedures (Sea-NACCS) Former Sea-NACCS (until Oct.2008) Vessel Clearance (Port EDI) Former Port EDI (until Oct.2008) Upgraded Sea-NACCS (since Oct. 2008) Landing Permission (Crew Landing Permission Support System) Former System (until Oct.2008) 5th generation NACCS (since Feb.2010) Customs Procedures (Air-NACCS) Trade Control (JETRAS) Animal Quarantine (ANIPAS) Former ANIPAS (until Oct.2008) Former Air-NACCS (until Feb.2010) Former JETRAS (until Feb.2010) ANIPAS (since Oct.2008) 6th generation NACCS (since Oct.2017) Plant Quarantine (PQ-NETWORK) Former PQ-NETWORK (until Oct.2008) PQ-NETWORK (since Oct.2008) Food Quarantine (FAINS) Former FAINS (until Feb.2010) FAINS (since Feb.2010) Common Portal Common Portal (since Oct.2008)

20 III. 2. Procedures on Foods at Ministry of Health, Labour and Welfare Increasing numbers of notifications on food procedures N u m b e r s 元 Number of notification Import Volume V 45 o l 40 u m 35 e 30 m i l 25 l

Ministry (Article 27 of the Food Sanitation Law ) Contents of the Notification Name, Address of importer Name of the food,

21 III. 2. Procedures on Foods at Ministry of Health, Labour and Welfare Obligation of importers to submit Import Notification to the Ministry (Article 27 of the Food Sanitation Law ) Contents of the Notification Name, Address of importer Name of the food, quantity, weight, package Name of Addictives Law materials for prepared foods, process, etc. *Meet products: Obligation of importers to submit a certification by exporting government to prove no diseases designated by MHLW. (Article 9 ) 19

22 III. 2 Various Inspections on Foods at Import High Import Ban Possible danger Inspection rate Inspection Order Monitoring Inspection Import first, Inspect later Inspection Instruction Low 20

23 III. 2 Trade Facilitation by Utilization of IT FAINS: Food Automated Import Notification and Inspection Network System MHLW introduced FAINS in The system allow electronic submission of food notification introducing automatic selectivity system Utilized more than 90%. With FAINS, Send food notification electronically Food Quarantine Office carries out examination Officer can register the results of the inspection Inspection Management Center register the results of the trusted inspection

I.3Paperless Certification -ecert Collaboration

Quarantine certificates Internet Japan NACCS

(EXDOC) 2 Cargo arrival 43 Import Notification

staff Paperless Quarantine Certificate issued

24 I.3Paperless Certification -ecert Collaboration Australia 1 Submission the information of Quarantine certificates Internet Japan NACCS FAINS Function APS Function Certificate AQIS (EXDOC) 2 Cargo arrival 43 Import Notification 3 Pre-Examination Customs broker Quarantine staff Paperless Quarantine Certificate issued by Australian Government to Japanese Government through NACCS

25 IV. Further Challenges for Developing Countries Institutional Challenges Publication of laws, regulations, etc. (Article 1) Advance Rulings on classification and rules of origin (Article 3) Pre-arrival Processing (Article 7) Utilization of IT and further facilitation Time Release Study (Article 7.6) Authorized Operators (Article 6.7) Single Window (Article 10.4) 23

26 Thank you for your kind attention! 24 Tokio YAMAOKA For details, see

27 Supplementary information Establishment of NACCS Center - Established in May 1977 as an authorized corporation to administer Air-NACCS - Transformed into an incorporated administrative agency in Oct Privatized by the new NACCS act* in October 2008 for improved corporate management and provisions of better services to users by enlarging its business scope -Stockholder: 100% owned by Japan Government -Supervisory Ministries: Minister of Finance (Main) with other relevant Ministers (Justice, Transport, Agriculture, Health and Trade) *Law for partial revision of the Act on Processing etc. of Business Related to Import and Export by Means of Electronic Data Processing System 25

28 Outside Japan In Japan 1. Gateway connection using filers own systems Carrier, NVOCC Same corporation Carrier, Shipping Agent and NVOCC in JAPAN NACCS Custom Japan s EDI EDI 2. Connection via Service Provider(SP) Carrier, NVOCC Service Provider (SP) EDI Web Entry Web Web application provided by SP Based on Customs Law, from this March 2014, a vessel operator or a non vessel operating common carrier (NVOCC) have to electronically submit information on maritime container cargoes to be loaded on a vessel intended to entry into a port in Japan, to Japan Customs (in principle) no later than 24 hours before departure of the vessel from a port of loading.

Introduction of Japanese Single Window

2009/SCCP/SWWG/WKSP4/008 Introduction of Japanese Single Window Submitted by: Japan Single Window Working Group Capacity Building Workshop 4 Singapore 6-8 April 2009 Workshop 4 SWWG Phase 2 APEC SCCP Introduction