EU-Japan Economic Partnership Agreement

The EU and Japan's Economic Partnership Agreement entered into force on 1 February 2019. EU firms already export over €58bn in goods and €28bn in services to Japan every year. The EU-Japan Economic Partnership Agreement reduces trade barriers that European firms face when exporting to Japan and helps them to better compete in this market.

The agreement at a glance

The EU-Japan Economic Partnership agreement entered into force on 1 February 2019.

What are the benefits for your business?

The trade agreement with Japan

Japan is already the EU's fourth biggest market for agricultural exports. Market access will be improved for many European products, notably

Tariffs

The agreement removes the vast majority of duties paid by European and Japanese companies.

On entry into force, the agreement eliminated 99% of EU tariff lines and 97% of Japan’s tariff lines. On not yet eliminated tariffs, tariff rate quotas or tariff reductions were agreed.

To check the tariffs for your product, you must know the product code, which is based on Harmonised System (HS) HS2017 code, for both European and Japanese codes.


You can find your product code using My Trade Assistant

The agreement opens the Japanese market to EU agricultural exports, for example

Tariff dismantling schedules

Tariffs for a vast majority of products are either immediately eliminated upon entry into force of the agreement or gradually following a tariff dismantling schedule.

The starting point of elimination or reduction of custom duties is a “base rate” and reductions occur on this base rate. By means of the customs tariff code of the product you will be able to find the reduction that applies to the base rate of your product.

Importing from Japan
Exporting to Japan

Tariff rate quotas (TRQs)

TRQs are also applicable on certain products. These are specific volumes of goods, which will be entitled to preferential tariff treatment in a given timeframe

For dairy products, the allocation of TRQs and collection of levies are done by the Agriculture & Livestock Industries Cooperation (ALIC).

Importation of designated dairy products (e.g., butter and whey) within the tariff quota are subject to a state trading system.

Information sheets by the EU-Japan Centre for Industrial Cooperation (EU Business in Japan)

Some marine products are subject to import quotas and the importers are obliged to apply.

More information on the application and allocation of TRQ in Japan.

Japanese Law Translation Database System provided by Ministry of Justice, Japan.

Safeguard measures

The EU-Japan trade agreement also provides for bilateral safeguard measures. The aim of a “safeguard” action (i.e. restrict imports of a product temporarily) is to protect a specific domestic industry from an increase in imports of any product which is causing, or threatening to cause, serious injury to the industry. In this agreement, agricultural safeguard measures are used to protect specific products from such surges in imports.

The EU products subject to these measures are

Additional information on safeguard measures concerning race horses

My Trade Assistant provides you with detailed information about the tariffs, the measures applicable to your product and market, and displays the tariff dismantling schedules for the relevant tariff lines.

Rules of origin

In order to qualify for preferential treatment, your product will need to satisfy the rules of origin under the agreement. Please check the interactive “Rules of Origin Self Assessment tool (ROSA)” in My Trade Assistant to assess whether your product fulfils the rules of origin and find out how to prepare the correct documents.

General information about the rules of origin and the origin procedures can be found in this section.

Origin is the 'economic nationality' of traded goods. If you are new to the topic, you can find an introduction to the main concepts in the goods section.

Rules of origin

Where can I find the rules of origin?

The rules of origin are set out in Chapter 3 on rules of origin of the EU-Japan Economic Partnership Agreement (OJ L330, 27.12.2018, p. 21).

Does my product originate in the EU or Japan?

For your product to qualify for the lower or zero preferential tariff under the EU-Japan Economic Partnership Agreement, it must originate in the EU or Japan.

A product 'originates' in the EU or in Japan, if it is

The product also needs to fulfil all other applicable requirements specified in the Chapter (for example insufficient working or processing, the non-alteration rule). There are also some additional flexibilities to help you comply with product specific rules (for example tolerance or cumulation).

Examples of the main types of product specific rules in EU trade agreements

Tips to help you comply with the product specific rules

The agreement provides additional flexibility to help you comply with the product specific rules such as tolerance or cumulation.

Tolerance
Cumulation

The EU-Japan Economic Partnership Agreement provides for two ways of cumulating origin

Other requirements

Your product also needs to fulfil all other applicable requirements specified in the Chapter on rules of origin, such as insufficient working or processing, or the non-alteration rule.

Non-alteration rule

Originating products must be transported from the EU to Japan (and vice-versa) without being further processed in a third country.

Some operations can be conducted in a third country if the products remain under customs supervision, such as

The customs authorities may request evidence of compliance with the rule, such as

Duty drawback

Under the EU-Japan EPA, it is possible to get a refund on duties previously paid on non-originating materials used to produce a product that is exported under a preferential tariff.

Origin procedures

Exporters and importers have to follow the origin procedures. The procedures are set out in Section B of Chapter 3 on Rules of Origin of the agreement. They clarify, for example, how to declare the origin of a product, how to claim preferences or how the customs authorities can verify the origin of a product.

How to claim a preferential tariff

Importers can claim preferential tariff treatment based on

For details please consult

Statement on origin

Self-declaration by the exporter

Exporters can self-declare that their product originates in the EU or Japan by providing a statement on origin.

In the EU it can be made by

In Japan it can be made by

What should the statement on origin contain?

Submission and validity

Importer’s knowledge

Verification of origin

The customs authorities may verify whether a product imported is indeed originating or fulfils other origin requirements. Verification is based on

Product requirements

Technical rules include technical regulations, standards and conformity assessment procedures. These rules define the specific technical characteristics that your product should have, such as design, labelling, packaging, functionality or performance and are important because they ensure that important public policy objectives, such as the protection of human health or the safety of the environment, are achieved.

These requirements can be related to such issues as

You need to follow these rules so your products can be evaluated to see whether they conform to the necessary technical standards.

To find out about the rules and requirements applicable to your product go to My Trade Assistant and enter your product name or code.

You can check the product categories below for more specific product requirement details and relevant links

Sanitary and phytosanitary (SPS) measures (e.g. laws, regulations, standards) are measures to protect humans, animals, and plants from diseases, pests, or contaminants.

They ensure that food products placed on the market, including imports from outside the EU, are safe for consumers.

You can find more information on SPS measures between the EU and Japan here.

Like the EU, Japan has some of the highest food safety standards in the world. For example, Japan does not allow the use of growth hormones in its beef production, and regulations controlling GMOs are of great importance to Japanese consumers.

All products imported from Japan need to comply with EU standards. This includes the EU's ban on hormone-treated beef and its rules on the use of antibiotics.

Furthermore, all imports of animal products to the EU from Japan must be accompanied by a veterinary certificate.

Only a competent authority in Japan, which the Commission has formally recognised as being able to certify compliance with the EU's import requirements, can issue such a certificate.

The trade agreement helps ensuring that your products are not hindered from entering the Japanese market by unjustified SPS trade barriers and helps streamlining and expediting the procedures for approving your food exports into Japan.

If you are importing from Japan into the EU find out more about SPS requirements here.

Find the specific rules and requirements for your product in My Trade Assistant.

Technical barriers to trade

Although technical rules are important, they can at times act as a barrier to international trade and can thus be a considerable burden for you as an exporter.

Customs clearance documents and procedures

Customs clearance typically include controls on

The EU-Japan agreement ensures more efficient customs procedures to facilitate trade and reduce costs for businesses.

Documents

You can consult detailed step-by-step guides that describe the different types of documents you should prepare for the customs clearance of your products.

Depending on your product, the customs authorities may require all or some of the elements below

For more certainty, you may wish to apply for Binding Tariff Information, and/or Binding Origin Information in advance.

For detailed information about the documents you need to present for customs clearance for your product, go to My Trade Assistant.

Japan Customs provides information about Japanese customs procedures, including required documents

Japan is also home to nine different customs jurisdictions, and it may be worth contacting the ones relevant to you to make the customs process smoother for your product.

Procedures

For a description of how to prove the origin of your products to claim a preferential tariff and of the rules relating to the verification of origin by customs authorities, please refer to the section on rules of origin above.

For general information on customs procedures for import and export, visit the website of DG Taxation and Customs Union.

Intellectual property and geographical indications

The EU-Japan EPA provides for an enhanced intellectual property rights protection for European companies exporting innovative, artistic, distinct and high-quality products to Japan. The commitments are reinforced and include provisions on protection of trade secrets, trademarks, copyright protection, patents, minimum common rules for regulatory test data protection for pharmaceuticals, and civil enforcement provisions.

The agreement recognises the special status and offers protection on the Japanese market of more than 200 European agricultural products from a specific European geographical origin, known as Geographical Indications (GIs). Owners of bilaterally agreed Geographical Indications in the agricultural, food and beverage sectors benefit from protection against counterfeiting. A list of protected Geographical Indications in the EU and Japan, can be found in Annex 14-B of the EPA.

Patents

The EU-Japan EPA affirms that the two parties will work together to maintain strengthen patent protection.

Under the agreement, both the EU and Japan have committed to grant an extension of the duration of the patent protection of pharmaceutical products and agricultural chemical products. To learn more about the patents in Japan, including on the filing and examination processes, please refer to the Japan Patent Office.

Other intellectual property issues

The Japanese Patent Office provides overviews on utility models, designs, trademarks and copyrights.

The Ministry of Economy also explains further about the enforcement of your intellectual property rights.

Services

The agreement makes it easier for EU and Japanese companies to provide services and offers greater mobility for company employees to perform their work on the spot.

Temporary movement of company personnel

Annex 8-C: Understanding on Movement of Natural Persons for Business Purposes

The schedule of the European Union and that of Japan in Annex III to Annex 8-B prescribe certain reservations and further provisions as to business visitors for establishment purposes, intra-corporate transferees, investors and short-term business visitors. Annex III to Annex 8-B is available at the following links

Certain reservations, limitations and further provisions as to contractual service suppliers and independent professionals are prescribed in the schedule of the European Union and that of Japan in Annex IV to Annex 8-B. Annex IV to Annex 8-B is available at the following links

The EPA contains a number of provisions that apply horizontally to all trade in services, such as a provision to reaffirm the Parties’ right to regulate services. The EPA affirms the right of authorities to keep public services public and will not force governments to privatise or deregulate public services, such us in the sectors of healthcare, education and water.

Specific commitments were agreed in sectors, such as

Regarding the commitments for cross-border trade in services, please see Section C of Chapter 8 of the Agreement.

Movement of qualified personnel

General information about visas