THE MOTOR INDUSTRY OF JAPAN 2019

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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). According to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into force in December 2018 for the countries that had ratified it by that date, automobile customs tariffs in the 11 signatory countries will be progressively reduced, with the goal being, depending on the country, eventual abolition. In line with the economic partnership agreement between Japan and the European Union that took effect on February 1, 2019, tariff rates on Japanese passenger cars imported into the EU will be lowered annually until their abolition in 2026. Also, with the enforcement of that agreement, more than 90% of the tariffs (in value terms) on imported Japanese auto parts were immediately abolished.Source: Japan Automobile Manufacturers Association● AUTOMOBILE CUSTOMS TARIFFS, JAPAN/U.S.A./CHINAAs of March 2019● STATUS OF JAPAN’S ENGAGEMENT IN EPAs/FTAsAs of March 2019Auto 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