This Generalized System of Preferences (SGP – Sistema Generalizado de Preferencias) contributes to the economic enhancement of developing countries, allowing products complying with corresponding standards, to enter markets of the countries granting preferences as reduced tariffs or in customs franchise.

Coverage

Japan guarantees preferential treatment to 149 countries and 15 territories, granting preferences to agricultural fishery products (chapters of Harmonized System 1-24). Industrial products (chapters of Harmonized System 25-97) also obtain preferences, including forest and mining industry production, excluding some specified products.

Application

Authorized by the Law of Temporary Tariff Standards, SGP - Japan is applicable since August 1, 1971. It’s been renewed in three opportunities; in 1981 for 10 years, in 1991 until March 31, 2001, and this year was renewed until March 31, 2011.

Origin Requirements

In order for products to benefit from preferential tariff treatment, they must be recognized as original from a specific preference-granted country, according origin criteria of SGP and be transported to Japan in compliance with their transport standards in order to guarantee that products maintain their conditions and they are not being manipulated or transformed again during transportation.

Goods are considered original from a preference-granted country if they have been completely produced in that country. In case of goods total or partially produced with material or inputs imported from other countries or unknown origin, the resulting goods are considered like original if that material or inputs have enough process in that country.

SGP Japan establishes the "content standard from preference-granting country” in compliance with the origin criteria. This standard allows material imported from Japan and its use in final production that will be exported to Japan afterwards, granting products a special treatment.