35+

years exclusive focus on customs & trade compliance software solutions

55+

countries on 6 continents in productive usage for customs filing

150+

countries covered with Global Trade Content Services

250+

free trade agreements in productive usage for automated origin calculation

A guide to the new EU-Japan Economic Partnership Agreement

Legislation | | MIC Customs Solutions |

Businesses should begin making preparations for the new Economic Partnership Agreement between the EU and Japan, which represents one of the largest FTAs of its kind.


New free trade agreements (FTAs) create numerous benefits for businesses engaged in international trade, but also a number of challenges as they adjust to the new legal status quo and rethink their services to take maximum advantage of liberalized regulations.

In December 2017, the European Union and Japan confirmed the finalization of one of the most significant FTAs of its kind after signing off on the Economic Partnership Agreement (EPA), a multifaceted trade pact that is set to create a broad array of opportunities for importers and exporters in several key areas.

With the legal changes brought about by the EPA likely to come into effect in 2019, now could be the ideal time for companies that might be affected by the agreement to familiarize themselves with its key principles, as this will allow them to be ready to embrace and capitalize upon the changes as soon as they enter into force.

Key measures

The EPA has been described by the EU as the biggest bilateral trade agreement it has ever negotiated, and aims to strengthen cooperation between Europe and Japan in a range of areas, reaffirming their shared commitment to sustainable development and combating climate change, while also generating new market opportunities for businesses in both regions.

Specifically, it will do away with €1 billion of duties paid annually by EU companies exporting to Japan, as well as eliminating a number of longstanding regulatory barriers. This also means the Japanese market of 127 million consumers will be opened up for key sectors in ways that have never previously been achieved.

Agricultural exports are one of the key focus areas of the EPA, with the partners having agreed to scrap duties on wine exports and many cheeses - such as Gouda and Cheddar - while also allowing the EU to increase its beef and pork exports to Japan substantially. Additionally, the export of hundreds of high-quality agricultural products from Europe and Japan will receive new protections.

Other objectives of the EPA include the opening-up of services markets - in particular financial services, e-commerce, telecommunications and transport - and providing EU companies with access to large procurement markets of 48 Japanese cities. Specific sensitive sectors - such as the European automotive industry - will adopt a more cautious approach, with transition periods in place before markets are opened.

Potential legacy

It is expected that the deal will deliver considerable benefits for business, workers and consumers in both the EU and Japan, while reaffirming both regions' ongoing commitment to the principles of fair trade at a time when protectionist sentiments are on the rise in many other parts of the world.

European Commission president Jean-Claude Juncker said: "This is the EU at its best, delivering both on form and on substance.

"The EU and Japan have sent a powerful message in defence of open, fair and rules-based trade; this agreement enshrines common values and principles, and brings tangible benefits to both sides while safeguarding each other's sensitivities."

EU commissioner for trade Cecilia Malmstrom added: "The EU and Japan share a common vision for an open and rules-based world economy that guarantees the highest standards. Today, we are sending a message to other countries about the importance of free and fair trade, and of shaping globalization."

Next steps

Now that the details of the deal have been formally approved, the EU and Japan have commenced the legal verification of the text, which will then be submitted for the approval of the European Parliament and member states, with the aim of bringing it into force before the end of the current mandate of the European Commission in 2019.

Negotiations remain ongoing on a number of outstanding issues, including investment protection standards and investment protection dispute resolution, but convergence on these last few points is expected to be achieved soon. This should allow the EPA to be signed and fully ratified later this year, allowing businesses around the world to begin preparing in earnest for the new possibilities and trade opportunities it will bring.


Software Solutions
MIC - Customs and Trade Compliance Software Solutions worldwide

Multinational companies are facing greater compliance challenges when addressing the continuously evolving international legal requirements. Customs and trade compliance management has a significant impact on production location and purchasing decisions, delivery times, cost savings and competitive advantages. Thus, it is crucial to establish processes that are accurately, effectively, and efficiently managed utilizing proven global IT solutions.

The international requirements for companies regarding customs and trade compliance management are complex and subject to ongoing legal changes covering a multitude of topics, such as: Correct product classification, compliance with export control regulations, numerous sanction list screenings, calculation of origin based on ratified free trade agreements, supply chain security initiatives, and management of special customs regimes as part of the import and export clearance processes. In addition, country-specific legal requirements that include legislative and technical changes make it increasingly difficult to completely fulfill the requirements of international customs and trade compliance.

A partnership with MIC strengthens a company’s ability to deal with the daily operational challenges of international customs and trade compliance management. MIC has a trendsetting Global Trade Management (GTM) software solution that allows companies to standardize and automate their customs and trade compliance processes. MIC’s software solution is available on 6 continents and can be configured according to the company’s specific needs to significantly improve legal compliance, thus saving time, money, and eliminating future business disruptions.

Read more

Setup option

Software as a Service (SaaS) / Cloud

MIC provides the software via its data center infrastructure. On request, a MIC partner can take over the daily operational handling (managed services).

Low investment expenses and “pay per use” cost savings, as well as reduced time to value.

Customs Filing

Automated electronic export and import customs clearance processes, including special customs regimes and inventory management: Import, Export, Transit, Inward & Outward Processing Relief, Bonded Warehouse, Foreign Trade Zones, Intrastat, Central Clearance – SASP, EMCS and more. “We do the last mile!”

Read more
Central Classification

Global part master data management with increased degree of automation in customs tariff & export control classification of products based on regularly updated national customs tariffs and export control commodity lists.

Read more
FTA Management

Automated preferential and non-preferential origin calculation for 250+ free trade agreements as well as electronic exchange of customer supplier declarations. Management of supplier declarations via supplier web portal.

Read more
Export Controls

Central export control check of business transactions, including sanctioning list check, embargo check, end-user / end-use check, determination of approval requirements and management of approvals.

Read more
Global Implementations

There are various customs regulations and requirements programs throughout the world. Examples include ACE, FTZ and Duty Drawback in the USA, IMMEX in Mexico, the Union Customs Code (UCC) in the EU (and its various national characteristics), the Free Zone in Thailand, and the China Single Window. All of these have the objective of making customs procedures simpler, more modern and more efficient.

MIC Global Trade Management (GTM) software helps companies maintain international visibility and to take advantage of these program changes in legislation. We know the intricacies of national and regional customs and export control requirements. Our software takes account of the respective regulations and uses similarities in global customs and export control law. This is done in 55+ countries on 6 continents with regularly updated trade content for 150+ countries. In addition, our data analytics & visualization tool enables improved decision making by identifying optimization potentials and supply chain trends across global customs and trade compliance processes. As a result, global business processes can be designed and automated more efficiently. This not only increases compliance, but also saves time, money and increases global competitiveness.

Read more
Career

Interested in working in our fastly growing, awesome company? Check out our open job position.

26 March 2024
IT Jobs with Analytical Focus
25 March 2024
14 March 2024
IT Project Management
13 March 2024

Contact us