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Comprehensive Economic Partnership Agreement Between India And Japan (CEPA)

 


Comprehensive Economic Partnership Agreement Between India And Japan (CEPA)

Answer: Tariff liberalization/reduction pattern under the JICEPA for agricultural and manufacturing products are classified in to the following five categories: Category A: Custom duties on products under this category is currently '0', as they have been eliminated on the date of entry into force of the JICEPA, which is i.e. 1 August 2011 B10 Category: Duties on the products under this category shall be eliminated in 11 equal annual instalments from the Base Rate to '0'. Duty reduction began on the date the JICEPA entered into force (i.e. 1 August 2011). Such goods shall be duty free, effective January 1 of year eleven (i.e. 1 January 2021). B15 Category: Custom duties on the products in this category shall be eliminated in 16 equal annual instalments from the Base Rate to '0'. Duty reduction began on the date the JICEPA entered into force (i.e. 1 August 2011). Such goods shall be duty free, effective January 1 of year 16 (i.e. 1 January 2026). B7 Category: Duties on products in this category will be eliminated in eight equal annual instalments from the Base Rate to free, beginning on the date this Agreement enters into force i.e. August 2011 and such goods shall be duty free, effective January 1 of year eight i.e. 1 January 2018. X Category: Duties on products in this category is excluded from any commitments of reduction or elimination of customs duties.
Answer: The key categories in which products figure in India’s negative list under the IJCEPA are: • Marine products • Dairy products • Fruits, vegetables, spices and nuts • Cereals • Vegetable oils • Processed agricultural products • Liquor and tobacco • Organic chemicals • Plastics, rubber and paper • Leather • Mechanical and electrical machinery • Automotives and auto components
Answer: Japan has undertaken immediate tariff liberalisation on a number of products of India’s export interest. These are seafood (prawns, shrimps, lobsters), textiles, chemicals, vegetables, fruits, meat and meat products, mineral stones and products of the cottage industry. These are potential areas of benefit for India.
Answer: The goods which are wholly obtained or produced entirely in the party country or if the product is not wholly or partly produced in the country then it has to satisfy certain conditions. They are as follows: The good has a qualifying value content of not less than 35 per cent All the non-originating materials used for production have undergone a change in tariff classification at the six-digit level.
Answer: Non-originating materials used in the production of a good that do not satisfy an applicable rule for the good shall be disregarded, provided that the totality of such materials does not exceed specific percentages in value or weight of the good. Such percentages shall be: in the case of a good classified under Chapters 15 through 24 (except 1604.20, 1605.20, 1605.90, 2101.11, 2101.20, 2106.10, 2106.90, 2207.10 and 2207.20), 2501.00, 2906.11, 2918.14, 2918.15, 2940.00, 3505.10, 3505.20, 3809.10 and 3824.60 of the Harmonized System, 7 percent in value of the good; in the case of a good classified under Chapters 28 through 49 (except 2905.44, 2906.11, 2918.14, 2918.15, 2940.00, 3502.11, 3502.19, 3505.10, 3505.20, 3809.10, 3824.60, 4601.29, 4601.94 and 4602.19) and 64 through 97 of the Harmonized System, 10 percent in value of the good; and in the case of a good classified under Chapters 50 through 63 (except 5001.00, 5003.00, heading 51.02, 51.03, 52.01 through 52.03, 53.01 and 53.02) of the Harmonized System, 7 percent in weight of the good.
Answer: Any goods would qualifying for preferential tariff under the JICEPA if value content not less than 35 percent; and all non-originating materials used in the production of the good have undergone in the Party a change in tariff classification at the six-digit level (i.e. a change in tariff subheading) of the Harmonized System. Further, there are some deviations in the case of the product mentioned for the specific rules.
Answer: Article 31(Accumulation) of the Agreement clearly specifies the existence of Regional Cumulation. For the purposes of determining whether a good qualifies as an originating good of a Party, an originating good of the other Party which is used as a material in the production of the good in the former Party may be considered as an originating material of the former Party, provided that such good has undergone its last production process in the former Party which goes beyond the operations provided for in Article 33.
Answer: At present there are no restrictions or prohibitions on any imported or exported products.
Answer: The general exceptions mentioned in GATT 1994 are applicable to the parties concerned. The measures are: a) Necessary to protect public morals b) Necessary to protect human, animal or plant life or health c) With regard to importation or exportation of gold or silver d) Necessary to secular compliance with laws or regulations which are not inconsistent with the provisions of the agreement e) Relating to products of prison labour f) Measures which are imposed for the protection o national treasures of artistic historic or archaeological value g) Conservation of exhaustible natural resources which are kept for domestic production or consumption. h) Obligation taken under any intergovernmental commodity agreements i) Restrictions which are necessary to ensure essential quantities of such materials to a domestic processing industry during periods when the domestic price of such materials is below the world price. j) Essential acquisition or distribution of products in general or local short supply. Along with this the agreement also spells out certain restrictions. They include the following: a) Measures for the protection of its essential security interests to protect critical public infrastructure including communications, power and water infrastructure from deliberate attempts to disable or degrade such infrastructure b) Protections of essential security interests with respect to a non-party or goods or service suppliers of a non-party or investors. c) In a situation where the enterprise or a juridical person is owned or controlled by an investor or persons of a non-party and the denying party does not maintain diplomatic relations with the non-party. d) If the service provider is not a natural person under this agreement.
Answer: Chapter 4 of the JICEPA deals with the customs procedures. There are many positive rules on transparency for exporters which are laid down in Article 44 of the JICEPA. All relevant information related to export and import should be made readily available to the interested parties. The revised custom laws should be made available in advance. The information related to specific customs matters should be available to the interested parties quickly and accurately.
Answer: All the rules regarding the customs procedures should be predictable, consistent, transparent and fair manner. According to the agreement all the measures with regard to customs clearance will be simplified. The help of information and communications technology will be used for simplifying the customs procedures. The countries will be using international standards and recommended practices to harmonise the customs procedures. The chances of administrative and judicial review are also provided for affected parties.
Answer: Facilities with regard to temporary admission of goods are provided according to terms and conditions provide in Revised Kyoto Convention.
Answer: All the technical regulations, standards and conformity assessment procedures will be defined according to Annex 1A of the WTO Agreement on Technical Barriers to Trade.
Answer: The sanitary and phytosanitary measures mentioned in Annex 1A in the Agreement on Sanitary and Phytosanitary Measures of WTO will be applicable for food products. (Article 50)
Answer: Yes, Article 54 of the Agreement covers “Cooperation on Generic Medicine”. Some of the key features of this Article are: • Exchange of information on regulatory measures on generic medicine • Non discriminatory treatment of applications by Indian exporters for registration of generic medicines in Japan.
Answer: The Mutual Recognition Agreements (MRAs) in sectors like electrical products, telecommunications terminal equipment and radio equipment will be mutually agreed by the countries through sub-committees on Technical Regulations, Standards and Conformity Assessment Procedures. The sub-committees on the Sanitary Phytosanitary (SPS) measures undertaking science-based consultations to identify and address specific issues that may arise from the application of SPS measures and It would be consulting cooperative efforts between the Parties in international fora in relation to technical regulations, standards and conformity assessment procedures, and SPS measures.
Answer: The Agreement on Anti-dumping and the Agreement on Subsidies and Countervailing Measures is applicable in anti-dumping issues and for countervailing duties respectively.
Answer: Broadly 12 sectors and more than 100 sub- sectors have been included in the agreement. The sectoral commitments of the agreement covers Business Services, Communication, Construction, Distribution, Education, Environment, Health Related, Tourism and Travel-Related Services, Recreational, Transportation Services and Other Services.
Answer: As per the World Development Indicators of World Bank (2012), Services account for 57% of GDP in India and 73% of GDP in Japan. The share of trade in services in GDP for India and Japan was 14.9% and 5.4% respectively.
Answer: The Salient features of Japan’s commitments • Japans' offer to India is WTO plus. • In fact, Japan’s offer to India is significantly superior to Japan’s Revised Offers in the WTO and also compares favourably with its commitments under other FTAs including its Agreements with various ASEAN countries. • There is a separate chapter on Mode 4 (Trade through movement of natural persons). • Japan has agreed for GATS plus disciplines in Domestic regulations. • Japan is committed to encourage conclusion of MRAs in any regulated service sectors within a 12 months from the date of entry into force of this Agreement after a request is made in writing by either Party.
Answer: The agreements covers Business Visitors (BV), Intra-Corporate Transferees (ICT), Investor, Certified professionals of India, Contractual Service Suppliers (CSS), Independent Professionals (IP) and Instructors.
Answer: The sectoral commitments are: (i.) Business Visitors (BV) & Intra Corporate Transferees (ICT)- all sectors covered under the Schedule (unless otherwise specified) (ii.) Certified professionals: Legal, Accounting, taxation (iii.) Contractual Service Suppliers (CSS) & Independent Professionals (IP)- 24 professions as given in the list as a answer to next question. (iv.) Instructors included for the following areas: • activities to teach Indian Yoga; • activities to teach Indian cuisine; • activities to teach Indian classical music and dance; or • activities to teach English language.
Answer: The professions covered in the categories of CSS and IPP are computer and related services; research and experimental development services on natural sciences and engineering ; interdisciplinary research and experimental development services; architectural services; engineering services; technical testing and analysis services; tourism; accounting and auditing services; bookkeeping services(except tax returns); market research and public opinion polling services; management consulting services; services related to management consulting; sale or leasing services of advertising space or time; planning, creating and placement services of advertising; specialty design services; and trade fair & exhibition organisation services.
Answer: The maximum duration of stay for categories of Indian service suppliers are: (i.) Business Visitors (BV)- 90 days (extendable) (ii.) Intra Corporate Transferees (ICT) 1-3 years(extendable) (iii.) Investors: 1-3 years (extendable) (iv.) Certified Professionals: 1 -3 years (extendable) (v.) Contractual Short Term Service Suppliers (CSS)- 1 -3 years (extendable) (vi.) Independent Professionals (IP)- 1 -3 years (extendable)
Answer: Japan has offered Modes 1 and 2 as ‘None' across the board (except for very few sub sectors such as Architecture Services).
Answer: Japan has taken significant commitments in CRS – offered full commitments at 2 digit level across the board in all modes of supply. This means that there are no restrictions/limitations on market access for Indian service suppliers in Japan. This is a significant gain for India in view of our strength and technological capability in the IT and ITES industry.
Answer: Japan has offered commitments in cross border services in ‘Other Business Services’ such as Management Consulting Services, packaging, printing and publishing, Speciality Design, Technical Testing Services etc. These ‘Other Business Services’ are emerging as significant contributor to India’s foreign exchange.
Answer: The sectoral commitments of Japan on potential areas of interest for India are: • R&D Services: Full Sectoral Coverage with full commitments in all modes 1, 2 and 3. • Communication Services- Full Sectoral Coverage including extensive commitments in telecom sector, good coverage in audio visual sector. • Construction: Full sectoral coverage with good commitments. • Distribution, Education and Environment: Full sectoral coverage in with good commitments. • Financial Services: Commitments as per the Understanding on Financial Services with substantive commitments. • Tourism and Recreation and Sporting Services: Good sectoral coverage and commitments. • Transportation: Extensive commitments for maritime, air,(including computer reservation system and selling and marketing of Air Transport services), railways , roads and pipeline.

 


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