Export to Japan Using IJEPA

When this posting I created, Japan was becoming the major destination of our export. Formerly , our buyer in France is the biggest amount of our export. But after the economic crisis happened in Europe Union, their orders was being dropped to the lowest that have ever happened. Moreover some buyers had been gone away and putted their order to some companies in another countries with the lower price given to them. I hope Japan will be better in amount and the price.

Fortunately, our government and Japan have an agreement to make both parties getting the benefits in trade international from each other. This agreement form is EPA or Economic Partnership Agreement between Japan and Indonesia. For import from Indonesia importer has to provide a document with the name is IJEPA ( Indonesia - Japan Economic Partnership ) and for Import from from Japan the document should be provide is JIEPA ( Japan - Indonesia Economic Partnership Agreement). This agreement will gives the reduction to any duties. To get those opportunities or facility both parties have to comply to some rules of origin as agreed. But not all goods will be covered by this agreement.   

Using this facility both importers Japan and Indonesia will get the reduction for duty till zero. Of course this will makes both parties to get this opportunity for their exports and imports. This will naturally push importer to increase their orders, because the price that will be offered to their customer will be lower and lower. For exporter will get more orders from their buyer and of course with the better in price offer.

In getting this facility the rule of origin has to be followed. The rule of origin involves origin criterion, direct consignment, and documentary evidence.

Origin criterion has product specific rules, those are change in HS code which has three change segmentation , value added in 40 percent or more, specific process, and basic principle or 40 percent value added.  

Change in HS code consists change in chapter ( CC ) , this change in the first two number from the raw material. The second is change in tariff heading ( CTH ), this change is in the first four number of the raw material. And the last is change in tariff sub heading ( CTSH ) or in the first six number from the row material. For instance as follow :

Change in chapter ( CC ) : 
Material : 2603 is HS code for Copper ores.
Goods : 7401 Cooper mattes.

Change in tariff heading ( CTH ) :  
Material : 7402 is HS code for Unrefined copper.
Goods : 7403 Refined copper.

Change in tariff sub heading ( CTSH ) :  
Material : 7403.11. is HS code for Cathodes and section of cathodes .
Goods : 7403.12 Wire - bars.

The requirement for getting IJEPA preference:

• The goods is under cover IJEPA agreement.
• Comply to preference criterion.
• Comply to transport criterion.

Criterion preference of IJEPA:

1. The goods has not an import contents. The letter "A" is written on IJEPA form.
2. The goods is produced by one of the two parties which the materials are got from one of Indonesia or Japan. The letter "B" will be given to the IJEPA form.
3. The goods can fulfill the requirements of PSR or product specific rule. The letter "C" will be stated on IJEPA form.