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.
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 | email@example.com
Masaharu Umetsuji | +81 3 6229 8070 | firstname.lastname@example.org
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.