Representatives of the European Union and Japan in July 2018 signed a new economic partnership agreement that was expected to enter into force in the first half of 2019 after ratification by the European and Japanese parliaments.
Opportunities for EU traders arising from this trade agreement include:
In addition, there would be simplification of the certificates of origin process between the EU and Japan.
The agreement allows for a request for preferential tariff treatment based on a statement of origin by the exporter or on the importer’s knowledge that the product is an originating product. When the claim for preferential tariff treatment is based on the importer’s knowledge, the exporting party would have to provide the importer with detailed information proving that the product is an originating product. However, any disclosure of such information could harm the commercial interests of the exporter in question. Therefore, in practice, only related parties are expected to use the importer’s knowledge method.
When a claim is based on a statement of origin and the exporter shares limited information with the importer or with the importing customs authority, any additional information required must be obtained through the exchange of information between the exporting customs authorities (i.e., the EU and Japanese customs authorities).
The exporter is free to determine which, if any, information pertaining to the originating status of the products is shared with the importer. Whether this information sharing will affect the relationship between exporter and importer is uncertain at present. The information the exporter shares with the importer and/or the EU and Japanese customs authorities determines how the verification process will proceed.
Read an October 2018 report prepared by the KPMG member firm in the Netherlands.
For more information, contact a KPMG trade professional in the Netherlands:
Leon Kanters | +31 (0)88 90 93167 | email@example.com
Bart-Jan Kalshoven | +31 (0)88 90 92556 | firstname.lastname@example.org
Or contact a professional with KPMG’s Trade & Customs practice:
John L. McLoughlin
Luis (Lou) Abad
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