PwC, USFIA's Premier Partner for 2015, has provided updates on recent news from China and Japan.
China to Open Its Import Tariff & Importation Policies for Consumer Products
China has been gradually opening up its import tariff and importation policies for commodities in recent years. A number of pilot policies have achieved remarkable results, bringing uprecedented opportunities to the retail and consumer industry. PwC has summarized the new policies and measures to provide their observations on the impacts and recommendations to industry players.
Relaxation of the Rules of Origin on Japan GSP for Knitted Apparel Products
From 1 April 2015, the Ordinance of Customs Temporary Act in Japan has been revised to relax the Rules of Origin for applying the General Systems of Preferences (“GSP”) rate on knitted apparel products upon import into Japan.
The GSP system allow products qualifying as originating in certain Developing Countries/Least Developing Countries (“GSP countries”) to benefit from a preferential duty rate (lower than the original import duty rate) in Japan. Prior to the amendment, apparel products classified under HS Chapter 61 had to be made from yarn in a qualifying country in order to qualify for GSP origin. This required the processing of the yarn to make textile fabrics, as well as the processing of the final product from such textile fabrics to be performed in the same GSP country.
With the relaxed revision, products may be deemed as originating in a GSP country if the product is purely manufactured from textile fabrics. As such, products that are manufactured in a specific GSP country by using imported textile fabrics may now be able to benefit from GSP rates upon import into Japan.
P.S. Don't forget to register for our upcoming webinar with PwC on FTZs on June 18th! This webinar is free for USFIA members in good standing.