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PRODUCTS This presentation has been prepared with the sole purpose - - PowerPoint PPT Presentation

EU JAPAN EPA DAIRY PRODUCTS This presentation has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA and bears no legal standing. EPA PROCESS INCREASE MARKET SHARE EU PRODUCTS


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EU – JAPAN EPA DAIRY PRODUCTS

This presentation has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA and bears no legal standing.

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EPA PROCESS

July 2018 Signature 1/2/2019 Entry into Force

Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

PROMOTION & INFORMATION

INCREASE MARKET SHARE EU PRODUCTS

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  • What the EPA is offering.
  • Some trade data …
  • Market Access
  • Cheeses
  • Butter and SMP
  • Whey products
  • Other dairy products
  • Geographical Indications
  • Rules of Origin
  • Information sources

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

OVERVIEW

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

A FEW HILIGHTS OF WHAT’S THE EPA IS OFFERING Main Products Before EPA EPA Tariff EPA TRQ Transition

Hard cheeses 29.8% Free trade 15 years Other cheeses 22.4%-40% 0% within TRQ TRQ: 20000t to 31000t 15 years Butter, SMP & condensed milk 21.3% + 396 Yen/kg - 29.8% + 1159 Yen/kg Phasing-out specific duties TRQ: 12857t to 15000t 10 years SMP for feeding 396 – 425 Yen/kg Duties reduced by 95% 5 years Whey products 29.8% + (425 - 1023 Yen/kg) 0% within TRQ TRQ: 6200t to 9400t 5 years

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

pork, 1264 alcoholic bev., 1106 tobacco prod., 703 cheese, 385

  • prep. of fruit &

veg, 258

  • live oil, 249

chocolates, 198 casein, 194 pasta, 187

  • ther, 1856

EU AGRI-FOOD 2017 EXPORTS TO JAPAN (MIO €)

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

50 100 150 200 250 300 350 400

2013 2014 2015 2016 2017 215 225 265 283 385 38 53 54 31 58 Cheese Milk powder and whey

MAIN EU DAIRY EXPORTS TO JAPAN (mio €)

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

MARKET ACCESS: CHEESES

  • Hard cheeses: the bulk of EU quality cheeses
  • base rate duties (up to 29.8%) gradually

eliminated.

  • duty free as from 1/4/2033

Examples: leading EU cheeses: cheddar, gouda, and GI cheeses: Parmigiano Reggiano, Edam Holland

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

CHEESES

TRQ for fresh, soft and processed cheeses with base rates duties (up to 40%) to become zero by 1/4/2033

Continued growth based on cheese consumption growth in Japan Including: mozzarella, blue veined cheeses, brie, Feta …

1/4/2019: 20.600 t 1/4/2033: 31.000 t

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

WHEY PRODUCTS

  • Various types of preferences in function of the product in function of

protein, mineral and sugar content; etc.

  • Mineral

concentrated whey, whey infant formula and whey permeate: TRQ

Gradual in-quota duty reduction Duty free as from 1/4/2023

  • Other whey products: duty free between 1/4/2023 and 1/4/2028, or gradual

duty reduction by 50 to 70% of the base rate in 5 to 10 years.

6520t 1/4/2019 9400t 1/4/2028

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

Safeguard Measure for whey protein concentrate and whey powder

  • WPC
  • trigger: 2000t to 7438t on 1/4/2037; to increase indefinitely by

573t/yr.

  • Whey powder
  • trigger: 2300t to 5190t on 1/4/2032; to increase indefinitely by

458t/yr.

  • SG measure to be definitely abolished is not applied for a number
  • f years after a given period.

WHEY PRODUCTS

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

OTHER DAIRY

  • Skimmed milk powder (SMP) & Butter:
  • Important TRQ together with butter

TRQ SMP & Butter

  • To note: SMP for feeding: 95% tariff reduction in 6 yrs.
  • Lactose, some ice cream and food preparation based on dairy: tariff

elimination

13.286t 1/4/2019 15.000t as from 1/4/2023

mark-ups eliminated as from 1/4/2028 ad valorem duties remain

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

GEOGRAPHICAL INDICATIONS

Full protection for 210 EU GIs, among which more than 25 cheeses.

 Direct protection of GIs under the EPA.  Relation between GIs and Trade Marks (TMs):  no registration in Japan of subsequent TMs;  coexistence with pre-existing TMs is addressed.  Listed prior uses to expire within 5 or 7 years  Possibility to add new GIs in the future.

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

RULES OF ORIGIN

  • Specified by product in the Product Specific Rules of Origin (PSR) –

Annex 3-B

  • PSR dairy products manufacturing:
  • Chapter 4 products: wholly obtained
  • Non-chapter 4 products: can be of non-EU origin.
  • More RoO details in the relevant Factsheet published on the website
  • f the EU-Japan Centre.

Example EU yoghurt imported in Japan under EPA preference: the milk (CH4) used in the production must be of EU origin; the sugar (CH17) can be of non-EU origin.

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

INFORMATION SOURCES

 EPA text and Annexes:

http://trade.ec.europa.eu/doclib/press/index.cf m?id=1684 Of which:

Annex 2-A: Schedule and Notes (TRQ, etc); Annex 2-E: Facilitation of wine export; Annex 3-B: Product specific rules of origin; Annex 14-B: GIs.

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

 EPA Helpdesk: https://www.eu-japan.eu/epa-

helpdesk

 Fiches per sectors and

webinars on EPA outcome

9 April

Wines and Spirits

7 May

Geographical Indications

21 May Dairy Products 11 June Meat Products 18 June Processed Agricultural Products

INFORMATION SOURCES

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

 Overall import conditions in Japan:  European Commission DG TRADE “Market Access Database”:

http://madb.europa.eu/madb/indexPubli.htm

 European Commission DG AGRI “Food and Beverage

Handbook – Japan”: https://ec.europa.eu/chafea/agri/content/food-and- beverage-market-entry-handbook-japan

 Japan’s Customs:

http://www.customs.go.jp/english/c-answer_e/imtsukan/1524_e.htm

INFORMATION SOURCES

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Managed by Under the supervision of

www.eu-japan.eu/epa-helpdesk

 European Commission (DG TAXUD) – Rules of Origin:

 https://ec.europa.eu/taxation_customs/business/calculation-customs-

duties/rules-origin_en

 https://ec.europa.eu/taxation_customs/business/international-

affairs/international-customs-cooperation-mutual-administrative- assistance-agreements/japan_en

 https://ec.europa.eu/taxation_customs/sites/taxation/files/eu_japan_

epa_guidance_claim_verification_denial_en.pdf

 European Commission: Geographical Indications

 https://ec.europa.eu/info/food-farming-fisheries/food-safety-

and-quality/certification/quality-labels

INFORMATION SOURCES

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Thank you for your attention

Yvan VAN EESBEEK

Consultant at the EU-Japan Centre for Industrial Cooperation

QUESTIONS ?

This presentation has been prepared with the sole purpose of simplifying the understanding of some parts of the EU-Japan EPA and bears no legal standing.