Automobile Customs Tariffs, EPAs-FTAsAfter repeated reductions in tariff rates, import tariffs in Japan on finished motor vehicles and auto parts were abolished in 1978. Many other countries continue to impose tariffs on imported vehicles: for example, the United States imposes a 25% tariff on imported trucks and China levies a 15% tariff on finished vehicles. Aiming to abolish customs tariffs and thereby to liberalize and facilitate trade and investment, the Japanese government promotes the establishment of economic partnership agreements (EPAs) and free trade agreements (FTAs). In recent years, Japan has signed several multilateral trade accords including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with ten countries and the Japan-European Union EPA, thereby significantly expanding the scope of its international trade agreements.Source: Japan Automobile Manufacturers Association● AUTOMOBILE CUSTOMS TARIFFS, JAPAN/U.S.A./CHINAAs of May 2020● STATUS OF JAPAN’S ENGAGEMENT IN EPAs/FTAsAs of February 2020Auto Parts, Etc.(including vehicle bodies)BusesTrucksPassenger CarsAuto Parts, Etc.(including vehicle bodies)BusesTrucksPassenger CarsNone2.5%6%None2%15%None25%Cab chassis, from 5t up to 20t in GVW: 4%15%None2.5%15%JapanU.S.A.ChinaSource: Japan Automobile Manufacturers Association● AUTOMOBILE CUSTOMS TARIFFS under the Japan-EU EPA and CPTPP[3-4.5%]Immediately abolished for more than 90% (in value terms).[6.0%]Immediately abolished for 87.5% (in value terms).[3-30%]Immediately abolished, or to be abolished within 11 years depending on the product, for tires, vehicle bodies, parts, and accessories.Gasoline buses≥2800cc, Diesel buses≥2500cc: [16%]Gasoline buses<2800cc, Diesel buses<2500cc: [10%] To be abolished in 13 years.[6.1%]To be abolished in 11 years.[5%]To be abolished in 13 years.Gasoline trucks≥2800cc, Diesel trucks≥2500cc: [22%] Gasoline trucks<2800cc, Diesel trucks<2500cc: [10%] To be abolished in 8 years.[6.1%]Large-sized gasoline trucks: To be abolished in 6 years.Other trucks:To be abolished in 11 years.[20-70%]To be abolished in 12-13 years.[10%]To be abolished in 8 years.[6.1%]To be abolished in 5 years.[77%]Over 3000cc:To be abolished in 10 years.3000cc or under:To be abolished in 13 years.Japan-EU EPA(in effect as of Feb. 2019)CPTPP (in effect as of Dec. 2018)Motor Vehicles WorldwideCustoms Tariffs, EPAs-FTAsNote: Figures in brackets represent tariff rates imposed prior to reduction/abolition.SwitzerlandIndiaMyanmarLaosChinaKoreaThailandCambodiaVietnamJapanMexicoPeruColombiaChileCanadaRCEPCPTPPASEANJapan-China-KoreaEUGCCMalaysiaBruneiSingaporeAustraliaNew ZealandIndonesiaPhilippinesMongoliaTurkeyEPA/FTA in forceEPA/FTA under negotiation/otherNotes: 1. Japan-ASEAN EPA investment services negotiations have been substantively concluded. 2. Negotiations are postponed/suspended with GCC, Korea, and Canada.Source: Ministry of Foreign Affairs Example: CanadaExample: Vietnam60
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