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1 For Official Use AGR/FI(2000)16/ADD1/REV1 AGR/FI(2000)16/ADD1/REV1 For Official Use Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 21-Sep-2001 English - Or. English DIRECTORATE FOR FOOD, AGRICULTURE AND FISHERIES FISHERIES COMMITTEE FISHERIES MARKET LIBERALISATION - INVENTORY OF TARIFF AND NON-TARIFF MEASURES, ASSISTANCE MEASURES AND RESTRICTIONS ON INVESTMENTS AND SERVICES JAPAN This document is submitted for INFORMATION ONLY to the 88th Session of the Committee for Fisheries, October It contains a number of minor updates compared to the previous version of the same document. Contact for further information : Carl-Christian SCHMIDT ( carl-christian.schmidt@oecd.org) English - Or. English JT Document complet disponible sur OLIS dans son format d origine Complete document available on OLIS in its original format

2 FISHERIES MARKET LIBERALISATION - INVENTORY OF TARIFF AND NON-TARIFF MEASURES, ASSISTANCE MEASURES AND RESTRICTIONS ON INVESTMENTS AND SERVICES JAPAN Inventory of tariff and non-tariff measures Tariff measures 1. The tariff schedule of Japan is provided in the document Tariff schedules. Non-tariff measures Import quotas 2. With a view to avoiding adverse effects of disorderly trade on the domestic supply and demand as well as stock status of the principal fish species that are targeted by Japanese coastal and offshore fishermen, certain fish are subject to the Import Quota System. The quotas in the system (as of August 2001) are: Horse mackerel 117,000 tonnes Mackerel 216,000 tonnes Sardine 25,000 tonnes Herring 131,000 tonnes Scallop 5,300 tonnes Alaska pollock 1,027,000 tonnes Cod 69,000 tonnes Squid and Cuttlefish 58,450 tonnes Dried Squid 4,500 tonnes Egg of cod and pollock 78,000 tonnes Yellow tail, Pacific sauries, adductors, dried 25 million dollars Quota for marine products from Korea 40 million dollars Nori 150 million sheets Green laver 130 tonnes Konbu 2,260 tonnes Konbu products 500 tonnes 2

3 Trade Information System 3. In implementing a number of international arrangements Japan has introduced the following trade information requirements. Following the recommendation by ICCAT, Japan has, since 1994, implemented the statistical document scheme that obligates the attachment of a certificate to imported Atlantic bluefin tuna. Following the decision by the CCSBT, Japan has implemented the trade information scheme that obligates the attachment of a certificate to imported Southern bluefin tuna from Following the decision by CCAMLR, Japan has implemented the catch documentation system that obligates the attachment of a catch certificate to imported Patagonian toothfish from Japan has, from 2000, implemented a certificate of eligibility scheme that obligates the attachment of a certificate to imported Atlantic swordfish to ensure that the products have not originated in Honduras or Belize. This scheme is necessary to implement the ICCAT recommendation that Atlantic swordfish from these countries be prohibited. Law regulating Fishing Operations by Foreigners 4. This law aims to ensure the order of Japanese fisheries. The law prohibits fisheries by foreigners in territorial waters and regulates the use of Japanese ports and territorial waters by foreign fishing vessels. 5. There is no regulation for foreign fishing vessels calling at Japanese ports if the objective of their port-call is to land fish products shipped from foreign ports since this activity is deemed to be trade. However, foreign fishing vessels calling at Japanese ports for other purposes are obliged to seek permission from the Minister of Agriculture, Forestry and Fisheries since such purposes are considered to be conducting a fishing activity. 6. Furthermore, as transhipments are considered to be a fishing activity, landings of fish products from foreign carrier vessels are prohibited if the products are those transhipped from foreign fishing vessels. Quality display system based on the revised JAS Law 7. In July 2000, an obligatory labelling scheme was introduced for all fresh fish products. The scheme informs the consumer of the fish name, its origin, whether it was thawed and if the origin is aquaculture. Moreover in April 2001 an obligatory labelling scheme was introduced for processed fish products. This scheme informs consumers of the product s name, contents/ingredients, quantity, edible terms, method of preserving and the name of the processor (in the case of imported products, importer and country of origin). In addition, an obligatory labelling requirement on the origin of ingredients will be extended to dried mackerel and horse mackerel preserved in salt, processed eel products and dried wakame and wakame preserved in salt from February 2002 and to shavings of dried bonito from June 2002 respectively. 3

4 Import Quarantine System (Living Aquatic Resources Protection Law) 8. Based on the standards set by the OIE, fry of carp, fry and eye egg of salmon (Salmonids) and fry of prawn (Panaeus sp.) are subject to an Import Quarantine System with a view to preventing incoming epidemics from infecting Japan s aquaculture. 9. In order to export such products to Japan, a certificate must be issued by the exporting country certifying that they are not infected by disease and permission for importation must be obtained from the Ministry of Agriculture, Forestry and Fisheries. Background to the system 10. A number of reasons have led the Japanese authorities to introduce the import quarantine system, including: As a consequence of an increase in imports of aquatic animal seedlings, new pathogens are introduced to Japan and cause damage to Japan s aquaculture. Taking into account the obligation stipulated by Article 196 of the UNCLOS (dealing with the introduction and utilisation of technology, introduced species and new species), it was decided that the introduction of microbes which damage aquatic living animals should be prevented, as a domestic measure. The OIE recommended in May 1995 that certificates showing non-contamination by specific microbes should be attached for the importation of aquatic animals prone to important diseases, and notified to the OIE. Outline of the system (the importation permission system for seedling) 11. In the case of the importation of aquatic animal seedlings specified by the Ministerial Ordinance and based on the Living Aquatic Resource Protection Law, importers have to prepare a set of documents. The authorities of the exporting countries certify that no diseases are present and issue a document to that effect. Subsequently the importer applies to the Minister of Agriculture, Forestry and Fisheries for import permission. The Minister permits importation only if it is judged that the seedlings will not introduce disease. Food hygiene 12. Based on the Food Hygiene Law, the monitoring of the number of microbes, residual antibacterial and pollution substances, and appropriate utilisation of food additives is conducted corporations at all levels of distribution (wholesale markets, storehouses and retailers) by food inspectors appointed by municipal. Fish products failing to meet the set standards are suspended for shipment. This inspection applies to all fish products, whether of domestic or imported origin. 13. Furthermore, in case of damage caused by a defect product, including processed fish products (except for fresh fish products), the processor is liable under the Product Liability Law. 14. Recently an increasing number of major processors have adopted the HACCP system for quality and sanitation control. However, it is necessary to appoint quality and sanitation specialists to ensure the 4

5 effective maintenance of the system. Moreover, enterprises may need to invest in infrastructure. In this regard, the Japanese fish processing industry, which is composed of small and medium sized enterprises, has many problems to resolve. CITES 15. The purpose of CITES is to protect endangered species through regulating international trade in certain animals and plants through co-operation between exporting and importing countries. As a member of CITES, Japan regulates the trade of species listed in CITES Appendices in accordance with CITES rules. Other import restriction measures Atlantic Bluefin Tuna import restriction 16. Since 1997, following the recommendation by the ICCAT, Japan has prohibited the importation of Atlantic bluefin tuna from Belize and Honduras. Following another ICCAT recommendation, Japan has also prohibited imports of Atlantic bluefin tuna from Equatorial Guinea from Swordfish import restriction 17. Since 2000, following the recommendation by the ICCAT, Japan has prohibited the importation of the Atlantic swordfish from Belize and Honduras. Bigeye tuna import restriction 18. Since August 2001, Japan has prohibited the importation of Bigeye tuna from Equatorial Guinea following the recommendation by the ICCAT. Whale meat import restriction 19. Following a resolution by the IWC, Japan has prohibited the importation of whale meat from non-member countries of the IWC since Furthermore, from 1985, in order to strengthen the enforcement of this resolution, approval is required for the importation of whale meat from an IWC member state. Salmon and trout import restriction 20. In accordance with the Convention for the Conservation of Anadoromous Stocks in the North Pacific Ocean Japan prohibits the importation of salmon and trout from Taiwan. Moreover, the importation of salmon and trout from China and North Korea is prohibited except for products that originate in the rivers of these countries. 5

6 Government financial transfers 21. An overview of the Japanese Government financial transfers is provided in the following table. Information is based in Government Financial Transfers and Resource Sustainability (in Transition to Responsible Fisheries Economic and Policy Implications, OECD 2000). Japan: Government Financial Transfers (JPY billion) Type of Transfer Total Direct payments Payments for fleet reduction Cost Reducing Transfers Re-insurance for damage of fishing vessels and mutual-aid insurance for fisheries disasters Support for introduction of new vessel and gear (support for improvement of the functioning of production, distribution, processing and marketing) General Services Market Intervention Reduction in interest costs for fisheries co-operatives Resource and management costs Support for fisheries facilities and infrastructure, enhancement of fishery communities 5 environment Research and development of new fishery technologies Research on deep-sea fisheries resources and the promotion of international fisheries 1 co-operation Source: OECD (2000a) and notifications under the WTO Agreement on Subsidies and Countervailing Measures. 1. Source: OECD (2000a). 2. WTO notification figure figure. 4. Source: OECD (2000a). Includes support for strengthening community-based fisheries management, surveillance and enforcement, support for the improvement of national and prefectural fish farming centres/development and release of seedlings. 5. Source: OECD (2000a). Includes support for construction of fishing ports, artificial reefs and aquaculture. Investment in Japan s fisheries industry by foreigners 22. Based on the OECD s Code of Liberalisation of Capital Movements, Japan maintains restrictions on inward foreign direct investments in the fishing industry. Foreign investors wishing to invest in fisheries in Japan are obliged to apply 1 for a permit from the Ministers of Finance and of Agriculture, Forestry and Fisheries, based on the Foreign Exchange and Foreign Trade Law. The Ministers examine the application and they can order the change or suspension of the investment if necessary Foreigners fishing activities are covered by Article 3 of the Law regulating Fishing Operations by Foreigners. Except for minor catch activity (e.g. jigging by ships of less than 3 tonnage), fishing by 1. So far, there has been no application for foreign direct investments to fisheries in Japan. 2. These include share acquisition of non-listed companies in stock exchanges, one-tenth or more of acquisition of the total share of listed companies in stock exchanges, establishment of branch office. 6

7 foreigners in territorial waters of Japan is prohibited. Similarly, fishing by foreigners in the Japanese EEZ, except for minor catching (e.g. jigging by ships of less than 3 tonnage), are subject to prior permission from the Minister of Agriculture, Forestry and Fisheries according to Article 5 of the Law Concerning the Exercise of Sovereign Rights Concerning Fisheries in Exclusive Economic Zones. 24. Based on Article 2 of the Fishing Boats Law, the possession of fishing boats is limited to: Japanese individuals. Companies where the representatives and two-thirds of the directors are Japanese. Companies with head offices in Japan and where all representatives have Japanese nationality. 25. Lending Japanese fishing vessels to foreigners is regarded as exportation. Therefore, prior approval is required from the Minister of International Trade and Industry according to the Export Trade Control Order. 7