RCEP Market

Japan’s additional rules of origin under the RCEP

In addition to the Schedule of Tariff Commitments, Japan’s Annex I of RCEP Full Text also has a Appendix stipulating a list of goods which are subject to tariff differentials and must comply with additional rules of origin (in addition to the general rules of origin).

This means that imported goods in The List of Appendix not only have to meet the rules of origin prescribed for those goods (stated in Annex 3A - Product-specific rules of Chapter 3 on Rules of Origin) but also need to satisfy the "Additional Rules of Origin" stated in this Appendix.

Additional rules of origin of Japan

The “Additional rules of origin” are regulated similarly among countries with different preferential tariff commitments (including Japan) in RCEP. Specifically, this rule requires the value content of the exporting country (value of raw materials, labor, profits, etc.) to account for 20% or more of the total value of goods. Japan’s “Additional rules of origin” are applied from the first year (2022) onwards.

Preferential Tariff Rate

  • If the goods meet both condition (i) and (ii):

(i) The goods are significantly processed in the exporting country where the goods are produced entirely from materials originating from RCEP members (only minimal processing steps – as specified in the Agreement – are carried out in other member countries, if any); and

(ii) The goods meet the "Additional rules of origin" as specified in the Appendix of Japan’s Tariff Schedule.

In this case, the applicable preferential tariff rate is the tariff rate that Japan grants to the RCEP exporting member.

  • If the goods DO NOT MEET either of condition (i) and (ii):

In this case, preferential tariff rate will be the tariff rate imposed by Japan on the RCEP country contributing the highest value of originating materials used in the production of goods.

Source: Center for WTO and International Trade

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