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Japan: Export controls for certain goods destined for South Korea

Japan: Export controls for certain goods

Japan’s Ministry of Economy Trade and Industry (METI) in early July 2019 issued a notice advising the trade community of more stringent procedures with regard to certain controlled items and their relevant technologies destined for South Korea.

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Read a release (English) on the METI website.

Under the new procedures, effective 4 July 2019, exporters may no longer apply for bulk export licenses for the export of fluorinated polyimide, resist, and hydrogen fluoride to South Korea. Instead, exports of these products will require individual export licenses.

“White list” and possible change concerning South Korea

METI also in early July 2019 initiated a public comment period with respect to a proposed amendment to Japan’s export laws and regulations to remove South Korea from the “white list” of trusted export destinations. METI currently is reviewing the comments and will be expected to reach a decision on this proposal, though a deadline has not been set.

Currently, there are 27 jurisdictions on Japan’s “white list” of trusted export countries: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, South Korea, Luxemburg, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, UK, and United States.

Removal from the “white list” would mean that Japanese exporters would lose access to general bulk export licenses for exporting goods—that is, a license that provides approval for multiple exports of controlled but less sensitive items to “white list” countries. Exporters would still be able to apply for other bulk export licenses instead of applying for individual approvals. However as a pre-requisite for all other bulk export licenses, it would be necessary for exporters to undergo a pre-audit by METI and for the export company to establish an internal control program.

 

For more information, contact a professional with KPMG’s Trade & Customs practice in Japan:

Kozu Takayuki | +81 3 6229 8205 | takayuki.kozu@jp.kpmg.com

Masaharu Umetsuji | +81 3 6229 8070 | masaharu.umetsuji@jp.kpmg.com

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