Portuguese Lighting Network Issue 11 | Page 28

Also in relation to import formalities and, besides the usual commercial documentation (commercial invoice, transport documents, etc.), by the official dispatcher of the companies, it is important to know all the technical requirements and the quality requirements, which you can see it on the Market Access Database - MADB website (available from the European Commission) at Procedures and Formalities.

The Japan Customs website also provides relevant information on the following pages: Import Procedures; Goods with Prohibitions, Controls and Restrictions; and Customs Answer / Import Clearance (FAQ).

As regards labeling, Japan requires the importer to comply with specific rules. The final label must be in Japanese language, but English translation is allowed as well as other details which can be found on the MADB website at Procedures and Formalities. Food labels should contain product name, list of ingredients, food additives, net weight, expiration date, storage methods, alcohol content, health warnings, prohibition of consumption by children (wines), country of origin, company name and address.

For customs taxation, the Japanese Customs Tariff follows the Harmonized Commodity Description and Coding System (HS), applying the following types of Tariffs:

* General (base tariff that considers the difference between domestic and foreign prices and the national industry protection standard);

* Most Favored Nation (MFN) rate granted to WTO partners, such as EU countries;

* Temporary (intended to deal with short-term economic and industrial changes);

* Preferential (grants reductions and exemptions to products originating in developing countries);

* Simplified (applicable to personal effects and small packages not exceeding 200.00 yen per import).

Most customs imports are calculated on an ad valorem basis on the CIF value of the goods.

In addition to customs duties, a rate of 8% (up to 10% soon) for the Consumption Tax (VAT equivalent) and which is applied to products imported or produced in the country must be paid.

Under the EU-Japan Economic Partnership Agreement whose negotiations were concluded in December 2017, the business environment is expected to improve significantly, notably by reducing customs duties, eliminating entry barriers (eg. non-tariff barriers of various kinds) and the approximation of technical product regulatory systems.

For Portugal it is noteworthy that the Principle Agreement, reached on April 18, 2018, protects the geographical indications of our agricultural productions (eg the pear rock and S.Jorge cheese). It offers good opportunities for the growth of Portuguese exports of agricultural and food products that account for about half of the value of Portuguese exports to Japan (eg wines, fruits and vegetables). Also industrial products (eg footwear; textiles and clothing) will benefit from more favorable conditions for exports to this Asian country as soon as the Agreement is in force (eg elimination of quotas and reduction of customs duties).