Guidebook for Export to Japan 2011 <Apparel Products and Materials> Japan External Trade Organization (JETRO) Development Cooperation Division Trade and Economic Cooperation Department March, 2011 Guidebook for Export to Japan 2011 Published in March 2011 Written and Published by: Japan External Trade Organization (JETRO) Development Coopelation Division Trade And Economic Coopelation Department Ark Mori Building 6F, 12-32 Akasaka 1-CHOME, Minato-Ku, TOKYO 107-6006 JAPAN TEL:+81-3-3582-5770 FAX:+81-3-3585-1630 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- Apparアelー Pトr, o工d芸u品c, tイs ンaテnリdア M雑貨at erials The major scope of this document includes apparel products such as articles of apparel, articles of leather, bags, and footwear & shoes. The document may also discuss yarns, textiles, and other apparel materials. Scope of coverage Item Definition HS Code Articles of apparel Knitted articles 6101-6117 (excluding 6117.90) Clothing of textile materials 6201-6217 (excluding 6217.90) Articles of leather Articles of leather or composition leather 4203.10, 29, 30, 40 (excluding raw hides, Articles of furskin tanned leather, etc.) 4303 Bags Bags 4202.11, 12, 19, 91, 92, 99 (excluding small articles) Handbags 4202.21, 22, 29 Footwear & shoes Leather shoes 6403.20 6403.51–022, 029 6403.59–044, 045, 104, 105 6403.91–012, 019 6403.99–012, 013, 015, 016, 022, 029 Sports shoes, campus shoes 6403.19–010, 090 6403.51–021 6403.59–020 6403.91–011, 021 6403.99–011, 021 6404.11–000, 6404.19–220 Apparel materials Leather 4101–4113 (raw hides, tanned leather, etc.) Silk yarns/textiles 5001–5007 Wool yarns/textiles 5101–5113 Cotton yarns/textiles 5201–5212 Linen yarns/textiles 5301–5311 Note: Articles of apparel do not include parts of garments, etc. containing embroidery or lace (HS code: 6117.90, 6217.90). 1. Points To Note in Exports to and Sales in Japan (1) Import Regulation and Procedures Importation of apparel products and materials may be subject to the regulations under the Customs Tariff Act, Customs Act, Foreign Exchange and Foreign Trade Act, Wildlife Protection and Proper Hunting Act, and the Act on Domestic Animal Infectious Diseases Control. ・Customs Tariff Act (tariff quota system) The tariff quota system of the Act is partially applicable to leather shoes, articles of leather, etc. Low (primary) tariff rates are applicable within the quantitative restriction on imports, while high (secondary) tariff rates are applied to other imports. A tariff quota application must be submitted to the Minister of Economy, Trade and Industry to obtain the tariff quota application certificate before enjoying primary tariff rates. No quantitative restriction is imposed on imports to which secondary tariff rates are applicable. ・Customs Tariff Act / Customs Act The Customs Tariff Act prohibits the importation of knock-off brands and other counterfeit goods, which are confiscated or disposed by the customs according to the Customs Act. Penalties such as fines and imprisonment may be imposed on offending importers. Following the revision of the Customs Tariff Act in April 2003, patent, design, and utility model rights were included in the scope of the import injunction request system. Effective from April 2004, information on manufacturers, exporters, and importers of counterfeit goods is allowed to be disclosed to the right - 1 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- holders, who can look into the responsibilities of importers, for instance, by filing a suit. From March 2006, confusingly similar articles and knock-off brands regulated by the Unfair Competition Prevention Act are controlled by the customs unless they are not registered as a trademark or design right, suggesting enhanced anti-counterfeit goods measures. ・Foreign Exchange and Foreign Trade Act Under the terms of the Washington Convention (CITES), the Import Trade Control Order of the Foreign Exchange and Foreign Trade Act regulates importing of species of wild fauna and flora listed in the Appendices to the Convention, which may include leather shoes and other leather articles. The Washington Convention applies to the three categories of species, as discussed below. Products made of animals raised for commercial purposes or those that were obtained prior to the conclusion of the Convention are permitted so long as a certificate by the management authority of the exporting country to that effect has been granted. For more information on the specific content and applicability of these classifications, you can contact the Trade Licensing Division, Trade and Control Department, Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry. A: Appendix I (All species threatened with extinction) International commercial traffic of these species or products made from these species is prohibited. Trade is allowed in special cases such as for academic purposes, although an export permit issued by the exporting government and an import approval by the Minister of Economy, Trade and Industry are required. B: Appendix II (All species requiring strict international regulation to prevent danger of extinction) The importer of any such species or product made from a member of such species must present to Japanese customs authorities an export certificate or re-export certificate from the management authority of the exporting country. Some species need prior confirmation by the Minister of Economy, Trade and Industry. C: Appendix III (All species that any party identifies as being subject to regulation and requiring the cooperation of other parties in the control of trade) The importer of any such species or product made from a member of such species for commercial purposes must present to Japanese customs an export certificate and a certificate of origin issued by the management authority of the exporting country, or a certificate granted by the management authority of the country of re-export that the specimen was processed in that country. Some species need prior confirmation by the Minister of Economy, Trade and Industry. If products made of animal skins are imported, the scientific name of the animals is recommended to be specified in the invoices, because only a general name of imported goods is not enough to determine if the animal used as the material of the product is included in the CITES list or commercially bred. ・Wildlife Protection and Proper Hunting Act An export certificate or legal capture certificate issued by the government of exporting countries must be attached to imported articles partially made of furskin or feathers of animals regulated by the Act. ・Act on Domestic Animal Infectious Diseases Control Identifying as the “designated quarantine items” the bones, flesh, furskin, and hair of animals, particularly those suspected of spreading bioagents of infectious diseases, the Act requires the export inspection certificate issued by the government of exporting countries to allow such products to be accepted by Japan. Only seaports and airports with a sufficient capability of animal quarantine are accepted as the ports of importation. On arrival of goods, the import inspection application together with the attached export inspection certificate issued by the government of exporting countries must be submitted to the animal quarantine station, which will issue the certificates of import quarantine following document review and the inspection of actual goods. In case of failing to - 2 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- pass the inspection, incineration of reshipment will be directed. For more information, you can contact the Animal Health Division, Food Safety and Consumer Affairs Bureau, Ministry of Agriculture, Forestry and Fisheries. (2) Regulations and Procedural Requirements at the Time of Sale The sale of apparel products and materials may be subject to the regulations of the Act Against Unjustifiable Premiums and Misleading Representations, Act on Conservation of Endangered Species of Wild Fauna and Flora (Species Conservation Act), Household Goods Quality Labeling Act, Act for the Control of Household Products Containing Harmful Substances, and the Act on Specified Commercial Transactions. Furthermore, containers and packaging materials may also be subject to labeling provisions of the Act on the Promotion of Effective Utilization of Resources, and the Law for Promotion of Sorted Collection and Recycling of Containers and Packaging. Note that the right holder may file a suit against improper acts such as the use of counterfeits and confusingly similar names and unauthorized use of characters for advertisement according to the Trademark Act, Design Act, and the Unfair Competition Prevention Act. ・Act Against Unjustifiable Premiums and Misleading Representations The Act prohibits a form of improper labeling that exaggerates or falsifies labeling and misleads consumers about the nature or quality of products. Importers or resellers are required to submit reasonable grounds to prove that the labeling is not “improper.” If they are unable to do so, those claims are considered as a form of improper labeling. Vague or confusing labeling that makes it difficult to discern the actual country of origin is also prohibited as a form of improper labeling. The country of origin is defined as “a country in which a treatment or process effecting substantial change to the substance of the goods made.” The country of origin refers to the nation where the weaving was performed in the case of apparels. The most important thing is for the labeling to be readily comprehensible to consumers, so if the manufacturing process encompasses multiple nations, then the labeling should state so. ・Act on Conservation of Endangered Species of Wild Fauna and Flora The Act established a legal framework for the protection of species considered to be in danger of extinction. Organs such as furskin and hides, and their finished goods of animals may not be sold or transferred in Japan if such animals are designated as species specially identified for protection,. However, species that are being raised for commercial purposes may be distributed in Japan, provided that proper registration procedures with the Minister of the Environment are completed. Registration procedures take place with the Japan Wildlife Research Center, a registration organization officially designated by the Ministry of the Environment. ・Household Goods Quality Labeling Act The Act stipulates the format and content of quality labeling for products designed for everyday household use. The purpose is to protect consumer benefits by providing information that helps them choose products and informs them about how to use the products correctly. Most products of this category such as articles of apparel, bags, and footwear must display in their labeling specific items of information stipulated by the Act. This is not always applicable, however, to all apparel products. Importers or resellers must confirm if the items to be imported are included in the list of regulated commodities. For more information, contact Product Safety Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry. ・Act for the Control of Household Products Containing Harmful Substances The Act prohibits the content of harmful substances (e.g., formalin, dieldrin) from being detected higher than at the upper limits in household products such as articles of apparel and bags. Designated textile products with formaldehyde content of 75 ppm or greater may not be sold in Japan. Furthermore, formaldehyde must not be detected in any measurable concentration when used in garments for infants aged two years or less. This requirement also applies to imported products. - 3 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- ・Act on Specified Commercial Transactions Selling “specified products, rights, or services” to general consumers through “specified commercial transactions” such as mail order sales or door-to-door sales are subject to provisions of the Act on Specified Commercial Transactions. Specified commercial transactions applicable include 1) door-to-door sales; 2) mail order sales; 3) telemarketing sales, 4) multilevel marketing transactions [network marketing by word of mouth/referral]; 5) specified continuous service offers; and 6) business opportunity related sales transactions. Mail order sales include internet sales and advertisements through e-mail. In order to provide consumers with accurate information, in mail order sales, operators are required to list the following information in their advertisements: (1) sales price, (2) payment period and method, (3) delivery date, (4) clauses related to the return system, (5) name, address and telephone number of operator. The Act also prohibits advertising containing false or exaggerated statements. (3) Contacts of Competent Authorities Fig. 1 Contacts of competent authorities Related regulations and control Competent agencies Contact/Website Compensation and Operation Division, Customs TEL: +81-3-3581-4111 Customs Tariff Act / Customs Act and Tariff Bureau, Ministry of Finance http://www.mof.co.jp Trade Licensing Division, Trade Control Foreign Exchange and Foreign TEL: +81-3-3501-1511 Department, Trade and Economic Cooperation Trade Act http://www.meti.go.jp Bureau, Ministry of Economy, Trade and Industry Wildlife Protection and Proper Nature Conservation Bureau, Ministry of the TEL:+81-3-3581-3351 Hunting Act Environment http://www.env.go.jp Animal Health Division, Food Safety and Consumer Act on Domestic Animal TEL:+81-3-3502-8111 Affairs Bureau, Ministry of Agriculture, Forestry and Infectious Diseases Control http://www.maff.go.jp Fisheries Act against Unjustifiable TEL:+81-3-3507-8800 Premiums and Misleading Representation Division, Consumer Affairs Agency http://www.caa.go.jp Representations Act on Conservation of Wildlife Division, Nature Conservation Bureau, TEL:+81-3-3581-3351 Endangered Species of Wild Ministry of the Environment http://www.env.go.jp Fauna and Flora Office responsible for household goods quality TEL:+81-3-3507-8800 Household Goods Quality labeling, Consumer Related Trade Division, Trade http://www.caa.go.jp Labeling Act Practices Department, Fair Trade Commission of Japan Act for the Control of Household Chemical Hazards Control Office, Evaluation and TEL:+81-3-5253-1111 Products Containing Harmful Licensing Division, Pharmaceutical and Food Safety http://www.mhlw.go.jp Substances Bureau, Ministry of Health, Labour and Welfare Consumer Economic Policy Division, Commerce Act on Specified Commercial TEL:+81-3-3501-1511 and Information Policy Bureau, Ministry of Transactions http://www.meti.go.jp Economy, Trade and Industry Recycling Promotion Division, Industrial Science TEL: +81-3-3501-1511 Act on the Promotion of Effective and Technology Policy and Environment Bureau, http://www.meti.go.jp Utilization of Resources /Law for Ministry of Economy, Trade and Industry Promotion of Sorted Collection Office of Recycling Promotion, Policy Planning and Recycling of Containers and Division, Waste Management and Recycling TEL:+81-3-3581-3351 Packaging Department, http://www.env.go.jp Ministry of the Environment - 4 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- 2. Labeling (1) Labeling under Legal Regulations Household Goods Quality Labeling Act The labeling requirements for the sale of apparel products and materials are specified, as listed in Figure 2, according to the provisions of textile product labeling and miscellaneous manufactured goods labeling of the Household Goods Quality Labeling Act. Fig. 2 Required labeling items under Household Goods Quality Labeling Act Item Labeling requirements 1) Composition of fabric, 2) Instructions on the use of home clothes washers, etc. 3) Repellency, 4) Type of leather (limited to products partially made of Articles of apparel leather material), 5) Name of the labeler and information contact (address or telephone number) 1) Type of material, 2) Dimensions (gloves), 3) Precautions on handing, 3) Articles of leather Name of the labeler and information contact (address or telephone number) 1) Type of material, 2) Method of care and storing, 3) Name of the labeler and Bag information contact (address or telephone number) 1) Material of uppers (synthetic leather), 2) Material of sole (rubber, synthetic Footwear & shoes material, etc.), 3) precautions on handing, 4) Name of the labeler and information contact (address or telephone number) Apparel materials 1) Composition of fabric, 2) Name of the labeler and information contact (yarns, textiles, etc.) (address or telephone number) Act on the Promotion of Effective Utilization of Resources Under the Act, specific containers and packaging are subject to [Representation example] identifier labeling provisions, in order to promote sorted collection. When paper or plastic is used as a packaging material for wrapping individual product items, or for labels, external packaging or elsewhere, a material identifier mark must be displayed in at least External Individual one spot on the side of the container with information where the packaging packaging material is used. Labeling under Industrial Standardization Act (JIS Mark) The dimensions of articles of apparel, footwear & shoes, and other related items are optional but the standards for dimensions and labeling method are stipulated according to the Industrial Standardization Act. Of all industrial products included in the Japanese Industrial Standards (JIS) list of applicable products, those certified by a private third party authorized by the Japanese government (registered certification body) are allowed to carry the JIS Mark on them. The mark can be labeled on products and/or packages, demonstrating that the products meet the strict quality requirements provided by the Act or JIS. To be allowed to carry the labeling, certification must be granted by a body authorized by the competent minister. - 5 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- Fig. 3 Process to obtain JIS Mark certification Selection of a registered certification body Application for certification [Examples] Inspection of quality management system JIS Mark (new) JIS Mark (previous) and product testing Certification decision by the registered certification body 認証の可否の判定 Conclusion of agreement (on JIS Mark use) between the body and applicant Labeling of JIS Mark on products Review of the sustention of certification Contact: Conformity Assessment Division, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry TEL: +81-3-3501-1511 (2) Labeling under Industry-level Voluntary Restraint The voluntary labeling programs (Fig. 4) are available for articles of apparel, articles of leather, bags, footwear & shoes, and other apparel products, as well as apparel materials. “Woolmark” is a quality assurance mark which certifies quality standards are met for wool products. “Silk Mark” and “Japanese Silk Mark” certify that quality standards are met for silk products (“Japanese Silk Mark” is limited to silk produced in Japan). “JES labeling” is a label validating that chemicals such as formaldehyde included in articles of leather fall within the guidelines displayed to ensure safety. Voluntary JFA (Japan Fur Association) labeling aims to ensure quality of articles of furskin by obligating the labeling of 1) product name (including place of origin); 2) processing treatment; 3) part used. If there are any violations, JFA will supervise guidance to manufacturers/distributors. The Japan Luggage Association prepares labeling for luggage of which 60% or more of its surface area uses leather from bulls, horses, swine, sheep, or goats, according to the Household Goods Quality Labeling Act. The front side of the label shows a standardized leather mark for articles of leather, and the back shows type of leather with care instructions. The same can be stated for the Japan Handbag Association, where labels are applied displaying the type of leather, care instructions, and country of origin on handbags and fashion bags. The Association of Japan Sporting Goods Industries (JASPO) makes it a rule that information such as the name of the manufacturer, material used, and the country of origin be displayed voluntarily on sporting goods being sold. This is based on the Act against Unjustifiable Premiums and Misleading Representations. The Japan Organic Cotton Association (JOCA) has established its own authentication mark to ensure quality of organic cotton products. - 6 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- Fig. 4 Industry’s voluntary labeling programs for apparel products and materials Labeling Organizer Contact Items Australian Wool Innovation Ltd. TEL: +81-3-3238-7151 Articles of apparel, Woolmark (AWI) Tokyo office http://www.wool.co.jp apparel materials TEL: +81-3-3214-1691 Articles of apparel, Silk Mark, Japanese Silk Mark Japan Silk Center http://www.silk-center.or.jp apparel materials JES labeling (Japan Eco Japan Leather and Leather TEL: +81-3-3847-1451 Articles of apparel, Leather standards Goods Industries Association http://www.jlia.or.jp articles of leather, bags, certification) (JLIA) footwear & shoes TEL: +81-3-3663-1120 Articles of apparel, Voluntary JFA labeling Japan Fur Association (JFA) http://www.fur.or.jp articles of leather Japan Luggage Association TEL: +81-3-3862-3516 Bags Voluntary JLA labeling (JLA) http://www.kaban.or.jp Japan Handbag Association TEL: +81-3-3851-5278 Bags Voluntary JHA labeling (JHA) http://www.handbag.or.jp Voluntary labeling of sporting Association of Japan Sporting TEL: +81-3-3219-2531 Articles of apparel, goods Goods Industries (JASPO) footwear & shoes Japan Organic Cotton TEL: +81-3-3341-7200 Articles of apparel, Voluntary JOCA labeling Association (JOCA) http://www.joca.gr.jp apparel materials [Representation example] Woolmark Silk Mark Ja panese Silk Mark JES label O rganic cotton certification mark 3. Taxation System (1) Tariff Duties Tariff rates for apparel products such as articles of apparel, articles of leather, bags, and footwear & shoes, as well as apparel materials such as yarns and textiles are omitted herein since there are numerous HS codes (refer to “Customs Tariff Schedules of Apparel Products” and “Customs Tariff Schedules of Apparel Materials” at the end of this document). In order to be eligible for benefits of preferential tariffs from one of the countries with which Japan has a preferential trading agreement, one is required to submit a Generalized System of Preferences Form A issued by the customs or other competent authorities from the country involved (except where the total value of imports is 200,000 yen or lower). Details may be checked with the Customs and Tariff Bureau of the Ministry of Finance. If one wishes to check the tariff classifications or tariff rates in advance, it may be convenient to use the prior instruction system in which one can make inquiries and receive replies in person, in writing, or via e-mail. (Japan Customs:http://www.customs.go.jp/english/index.htm) If textiles or articles of leather made or finished abroad out of apparel materials such as cloth imported from Japan are imported within one year from the permission date of such material exports, the duties equivalent to such exports will be reduced (the tariff reduction program for re-import of the processed goods) under the provisions of the Act on Temporary Measures concerning Customs. The reduction is calculated as the price of exported materials multiplied by the tariff rate on the product. To obtain approval of the preferential treatment, a notification for the confirmation of finished/assembled products importation must be submitted to the customs to obtain the authorities confirmation. The preferential tariff program is effective for a limited period of three years, which has been repeatedly extended. The current term will be terminated in March 2011. (2) Consumption Tax (CIF + Tariff duties)  5% - 7 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved. -Apparel Products and Materials- 4. Trade Trends (1) Changes in Imports <Import trends of apparel products> Imports of articles of apparel, bags, and footwear & shoes excluding articles of leather increased in value until 2007, but started to decrease from 2008. One major influence is the decline in consumer spending due to the recession brought on by the Lehman‟s fall in 2008. Despite the decline in imports for articles of apparel by value, decreases by volume have been small, or have stayed flat. This may be attributed to the fact that there have been no major changes in the number of clothing items bought by a consumer amidst decreasing consumer budgets for fashion goods, owing to the increasing popularity of “fast fashion” as represented by Uniqlo and Forever 21, SPA specialty stores (vertical sales method which integrates all processes from manufacturing to retail) applying overseas production cases in China, etc., which has led to a sharp drop in product prices. Into 2010, even though the economy has not fully recovered, there are hopeful signs of future improvement, and imports of these items should start increasing in terms of both volume and value (except imports of articles of apparel). Fig. 5 Changes in apparel imports [Articles of apparel] [Articles of leather] （￥million） （volume）（value） （1,000articles ） （￥million） （tons） （volume） 3,000,000 7,000,000 100,000 20,000 2,500,000 6,000,000 80,000 （value） 5,000,000 15,000 2,000,000 4,000,000 60,000 1,500,000 10,000 3,000,000 40,000 1,000,000 2,000,000 20,000 5,000 500,000 1,000,000 0 0 0 0 2006 2007 2008 2009 2010 （year） 2006 2007 2008 2009 2010 （year） [Bags] [Footwear & shoes] （￥million） （tons） （￥million） （1,000pairs） （volume） （volume） （value） 500,000 （value） 200,000 200,000 70,000 60,000 400,000 150,000 150,000 50,000 300,000 40,000 100,000 100,000 200,000 30,000 50,000 50,000 20,000 100,000 10,000 0 0 0 0 2006 2007 2008 2009 2010 （year） 2006 2007 2008 2009 2010 （year） - 8 - Guidebook for Export to Japan 2011 Copyright (C) 2011 JETRO. All rights reserved.