General Standards
Japanese market is considered to be the most standardized among the other Asian countries. Keeping and respecting the international trade standards landscape is essential for doing export and import business in Japan.
A large number of domestic and imported products alike have to be tested and are not allowed to be sold without certification of compliance with prescribed standards. In order to access the market and become a leading manufacturer or seller, it is important to be aware of International standards, established by Japanese Government due to rich export and import experience.
Product requirements in Japan are divided into two divisions :
1) Technical Regulations (or mandatory standards);
2) Non-mandatory Voluntary Standards.
Major international laws stipulating standards that apply to products in Japan include the following:
1) Electrical Appliance and Material Safety Law;
2) Consumer Product Safety Law;
3) Gas Utility Industry Law;
4) Food Sanitation Law;
5) Pharmaceutical Affairs Law;
6) Road Vehicles Law;
7) Building Standard Law.
All regulations and standards are governed by a certification system in which inspection results determine if quality approval (certification/quality mark) is granted.
This approval is required before a product can be sold in the market as the main goal of the country is to keep strong B2B relations without any loses in proper economy. The certificate should be displayed at the trade show for customers to see what they are going to purchase. For example, unapproved medical equipment may be displayed at a trade show if accompanied by a sign indicating that the product is not yet approved for sale. To affix a mandatory quality mark or a voluntary quality mark requires prior product type approval and possibly factory inspections for quality control assessment.
Regulated and tested products must have the appropriate mandatory mark when imported to Japan in order to clear Japanese Customs. International standards should be applied not only to the product itself, but also to packaging, marking or labeling requirements, testing, transportation, storage, and installation. All the imported products with such standard marks of approval can greatly enhance a product's sales potential and help win Japanese consumer acceptance.
There are two main directions in the country regarding international standards. One is a move toward local standards reform and the other towards harmonizing Japanese standards with prevailing international ones. Despite the fact, that Japanese market tends to internalization, numerous laws still require compliance with Japan-specific mandatory local standards, most of which have not been translated into English.
The Japan External Trade Organization (JETRO https://www.jetro.go.jp/en/reports/regulations/ ) this one who takes care of respecting the International standards.
Product Liability Insurance
Japanese export and import businesses are subjects to various laws and international product safety standards. All these standards vary depending on the industry or product segment. Japanese importers and distributors of foreign products cover product liability risk through the product liability clause in their own liability insurance. The covered items and exemptions may vary from underwriter to underwriter and among industry segments.
Organization of Standards
The Japan Industrial Standards Committee (JISC) has the central role in international standards organization in Japan. Their estimate goal includes four essential elements:
1) establishment and maintenance of Japan Industrial Standards (JIS);
2) administration of accreditation and certification;
3) participation in international standards activities;
4) development of measurement standards and technical infrastructure for standardization.
Existing JISC standards are revised every five years. In cases, when a new international standard has been approved, JISC informs all manufacturers, sellers and customers, posting these draft standards for a sixty-day public comment period. During this time, people have to revise the products they are working with and prepare new standard certificates.
Accreditation
The Japan Accreditation System for International Product Certification Bodies of JIS Mark (JASC) is an accreditation program governed by the Japanese Industrial Standards (JIS) Law, and operated by the JASC office in the Ministry of Economy, Trade and Industry (METI). JASC verify, tests and accredits product certification bodies in the private sector. In the same time, the organization allows these bodies to certify companies so that the companies may place the JIS Mark on their products.
The two biggest non-governmental accreditation bodies in Japan are:
1) The Incorporated Administrative Agency (IAJapan – within the quasi-governmental National Institute of Technology and Evaluation). This agency operates several accreditation programs including the Japan National Laboratory Accreditation System (JNLA) and the Japan Calibration Service System (JCSS).
2) The Japan Accreditation Board for Conformity Assessment (JAB). Its main mission is to contribute to health, safety, environmental conservation and fair economic activity in Japan, and to facilitate trade, by formally recognizing and promoting the use of conformity assessment systems that comply with international standards.
Import and Export Licensing
Most exported and imported goods do not require a licence and can be shipped freely. Japanese trade licences are required for certain goods, including hazardous materials, animals, plants, perishables, and in some cases articles of high value.
International Requirements and Documents
Any manufacturer, sellers and customer has to prepare a number f documents before the affair is completed. An import/export (Customs duty payment) declaration form must be submitted to Japan Customs with the following documents:
1) Invoice;
2) Bill of lading or Air Waybill;
3) The certificate of origin (where a WTO rate is applicable);
4) Generalised system of preferences, certificates of origin (Form A) (where a preferential rate is applicable);
5) Packing lists, freight accounts, insurance certificates, etc. (where deemed necessary);
6) Licenses, certificates, etc. required by laws and regulations other than the Customs Law (when the import of certain goods is restricted under such laws and regulations);
7) Detailed statement on reductions of, or exemption from customs duty and excise tax (when such reduction or exemption is applicable to the goods);
8) Customs duty payment slips (where the concerned goods are dutiable).
Labelling and Marking Requirements
The Japanese Measurement Law designates that all imported or exported products and shipping documents have to show metric weights and measures. The law requires valid labels for textiles, electrical appliances and apparatus, plastic products, miscellaneous household and consumer goods. For other products, original labelling is not required, except some beverages and foods which do require labelling and marking of true information. False or misleading labels displaying names of countries or flags other than the country of origin, and / or names of manufacturers or designers outside the country of origin are not permissible.
Trade Agreements
Japan has established Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs) with a number of countries including Singapore, Malaysia, the Philippines, Thailand, Brunei, Indonesia, Vietnam, India, Mongolia, Mexico, Chile, Australia and Switzerland.
The country is also negotiating FTA-EPAs with Canada, Colombia and Turkey, and regional FTA-EPAs with China-Korea, ASEAN, the Gulf Cooperation Council (GCC are namely Bahrain, Oman, Qatar, Saudi Arabia, the UAE and Kuwait) and the EU.