Japan Commercial Arbitration Association (JCAA) and Arbitration & ATA Carnet Practices
Interlink編集部Japan Commercial Arbitration Association (JCAA) and Arbitration / ATA Carnet Practice
The Japan Commercial Arbitration Association (JCAA) is an organization that handles arbitration and mediation for commercial disputes and also serves as the issuing and guaranteeing body for ATA Carnets and SCC Carnets in Japan.
However, although both arbitration/mediation and Carnet services are managed by JCAA, their purposes, legal nature, usage conditions, contact points, and required documentation differ.
Arbitration and mediation are dispute resolution procedures for commercial conflicts arising between contracting parties. In contrast, ATA Carnets and SCC Carnets pertain to customs procedures for temporarily exporting items such as exhibition goods, commercial samples, and professional equipment abroad.
In international logistics and trade practice, misunderstandings sometimes occur, such as assuming that "arbitration and Carnet services can be handled through the same JCAA contact point" or that "since JCAA issues ATA Carnets, JCAA determines local customs decisions."
This article organizes the role division of the JCAA organization as a whole, focusing on arbitration and mediation, ATA Carnet, SCC Carnet, and their relationship to international logistics practice.
Scope Covered in This Article
| Item | Content Covered in This Article | Content Covered in Other Articles |
|---|---|---|
| Overview of JCAA | The position of JCAA as an organization that concurrently handles arbitration, mediation services, and carnet operations | Corporate history, organizational regulations, and internal personnel matters of JCAA are not covered |
| Arbitration Services | JCAA as the institution managing commercial arbitration procedures | Details such as arbitration venue, governing law, arbitration agreement, and limitation periods are covered in Arbitration Procedures: Frequently Asked Questions |
| Mediation Services | The role of commercial mediation in supporting consensus building between parties | Case-specific mediation strategies and drafting of settlement terms should be confirmed with specialists |
| ATA Carnet | JCAA’s role as the issuing and guaranteeing body in Japan | Application, security, goods list, vouchers, customs clearance, re-export, and return procedures are covered in the ATA Carnet article |
| SCC Carnet | Positioning of the carnet used for temporary import/export with Taiwan | Specific issuance applications, customs procedures in Taiwan, and return methods should be confirmed with the latest JCAA guidance |
| Security and Guarantee | Basic reasons why security or security measures are required at carnet issuance | Latest security rates, security handling fees, and issuance charges are confirmed via JCAA official announcements |
| Freight Forwarder Practice | Extent of freight forwarder involvement in transportation, customs clearance, and document coordination | Individual customs declarations, dangerous goods transport, quarantine, and other regulatory procedures are covered in specialized articles |
| Inquiry Contact Points | Need to distinguish inquiry categories between arbitration/mediation and carnet matters | Names of contacts, phone numbers, reception hours, etc., should be confirmed with the latest official JCAA information |
| Export/Import Regulations | Requirement for confirmation of other laws and regulations even when using carnets | Export controls, Pharmaceuticals and Medical Devices Act (PMD Act), food regulations, quarantine, CITES, and others are covered in respective system articles |
| Customs Determinations | JCAA’s issuance and customs clearance decisions by individual countries are separate matters | Import/export clearance eligibility of individual cargo should be confirmed with the customs authorities of exporting/importing countries, customs brokers, and experts |
Purpose of JCAA and Its Role in International Transactions
In international commercial transactions, the parties involved often differ in location, language, legal systems, and commercial customs. Therefore, when disputes arise, it is crucial to determine which country’s courts or arbitration institutions will resolve them.
The JCAA is positioned as an organization that provides the system, rules, and procedural management for using arbitration and mediation in commercial disputes related to Japan.
Meanwhile, in international logistics, product samples, professional equipment, and similar items may be temporarily exported abroad for purposes such as exhibitions, business negotiations, filming, performances, construction, or technical support, and then returned to Japan after use.
For such temporary exports and imports, ATA Carnets or SCC Carnets may be used if certain conditions are met. The JCAA is involved in the issuance and guarantee of Carnets on the Japanese side.
Arbitration and mediation are dispute resolution mechanisms, while Carnets relate to customs clearance for temporary export and import. There is no direct procedural connection between the two.
Role Allocation within JCAA
| Business Area | Main Purpose | Main Users | Main Points to Confirm | Issues if Responsibilities Are Confused |
|---|---|---|---|---|
| Commercial Arbitration | Submit commercial disputes to the arbitration tribunal based on an arbitration agreement | Parties to sales contracts, agency agreements, logistics contracts, etc. | Arbitration agreement, arbitration rules, arbitration venue, language, arbitrators, costs | There may be a risk of misunderstanding the designated arbitration forum or applicable rules |
| Commercial Mediation | Aim for consensual dispute resolution between parties with neutral third-party assistance | Parties aiming to resolve conflicts while maintaining business relationships | Mediation agreement, mediators, costs, settlement terms | There is a risk of misunderstanding that simply filing for mediation results in binding decisions |
| ATA Carnet | Support temporary export/import customs clearance of goods to treaty member countries/regions | Exhibitors, manufacturers, trading companies, personnel involved in shooting, performing, construction, etc. | Destination country, purpose, goods, value, security, validity period, re-export and return | Inquiries about customs clearance methods directed to the arbitration division may not yield appropriate responses |
| SCC Carnet | Support temporary export/import customs clearance of goods between Japan and Taiwan | Businesses bringing exhibition items, product samples, professional equipment, etc., to Taiwan | Confirmed to be for Taiwan, purpose, goods, security, round-trip route, and return | Handling Taiwan as an ATA Carnet destination may lead to incorrect application procedures |
| Information Provision | Provide official guidance on arbitration/mediation, contract clauses, carnet usage, etc. | Corporate legal affairs, trade personnel, freight forwarders, customs brokers, lawyers, etc. | Department corresponding to inquiry content and latest regulations | Potential confusion between general information provision and legal or customs rulings for individual cases |
In JCAA's official inquiry classification, inquiries related to arbitration/mediation and those related to ATA Carnet are handled separately.
Therefore, before making an inquiry, it is necessary to clearly identify whether you are asking about contractual dispute resolution or about issuing a temporary export/import carnet.
Basic Classification for Determining the Appropriate Contact
| Inquiry Topic | Main Contact Point | Scope of Guidance Provided by JCAA | Matters Requiring Separate Confirmation |
|---|---|---|---|
| Want to include a JCAA arbitration clause in the contract | JCAA Arbitration and Mediation Office, Contract Attorney | Model clauses, arbitration rules, general filing procedures | Legal determinations such as applicable law for the contract, liability clauses, arbitration venue, etc. |
| A dispute has already arisen | JCAA Arbitration and Mediation Office, Attorney | Procedures and rules for filing arbitration or mediation claims | Legal basis of claims, statute of limitations, evidence, preservation, and recoverability |
| Want to use an ATA Carnet for exhibition goods | JCAA Carnet Office, freight forwarder, customs broker | Issuance requirements, application procedures, security deposit, eligible countries, and basic usage | Local customs practices, export/import regulations, venue delivery conditions, transportation schedule |
| Want to bring product samples into Taiwan | JCAA Carnet Office, customs broker | Issuance requirements for SCC Carnet and basic usage | Import regulations in Taiwan, applicable goods, local customs clearance, and delivery conditions |
| Carnet goods were sold locally | JCAA Carnet Office, local customs broker, customs authorities, specialists | Guidance on necessary documents for return, certification, and guarantee claims | Payment of import duties, Import Permit, legal responses under local law |
| Want to export hazardous materials, food, medical devices, etc. | Relevant government agencies, customs, customs broker, specialists | General guidance on whether issuance of a carnet is applicable | Hazardous materials regulations, quarantine, Pharmaceuticals and Medical Devices Act (PMD Act), export controls, and other permits |
Positioning of Arbitration and Mediation Services
Arbitration is a procedure in which disputes are resolved by arbitrators or an arbitration panel instead of courts, based on an arbitration agreement between the parties.
When using JCAA arbitration, it is necessary not only to designate JCAA as the arbitration institution in the contract but also to confirm the applicable arbitration rules, the place of arbitration, the language used, the number of arbitrators, and the governing law.
Mediation is a procedure where a neutral mediator assists the parties in discussions aimed at reaching a mutually agreed resolution. Unlike arbitration, the mediation process does not involve an arbitration panel making a final binding decision.
Details on arbitration agreements, place of arbitration, governing law, arbitration institutions, time limits for filing claims, differences in arbitration clauses between House B/L and Master B/L, and recourse claims by cargo insurance companies are covered in Arbitration Procedures: Frequently Asked Questions.
Comparison of Arbitration, Mediation, and Litigation
| Category | Basis of Procedure | Decision Maker | Nature of Outcome | Relationship with JCAA |
|---|---|---|---|---|
| Arbitration | Principally, arbitration agreement between the parties | Arbitrator or Arbitral Tribunal | The arbitral award is generally binding on the parties | JCAA manages arbitration procedures based on its rules |
| Mediation | The parties’ willingness to use mediation for resolution | Final agreement by the parties themselves | Typically, it does not become the final resolution unless parties agree | JCAA manages the mediation process |
| Litigation | Statutory jurisdiction or agreed jurisdiction, etc. | Court | Resolved by judgment, with possible appellate procedures | JCAA does not manage litigation procedures |
| Negotiation Between Parties | Voluntary discussions between the parties | The parties | Binding if a settlement or similar agreement is reached | Usually does not use JCAA procedures |
Positioning of ATA Carnet Operations
The ATA Carnet is a customs document used for temporarily taking exhibition goods, commercial samples, professional equipment, etc., abroad and re-exporting or re-importing them after use.
By meeting certain conditions and completing proper carnet customs clearance, exemption from import duties and taxes in the importing country may be possible.
The Japan Commercial Arbitration Association (JCAA) is the organization responsible for issuing and guaranteeing ATA Carnets in Japan. However, the issuance of a carnet by JCAA does not guarantee that the customs authorities of the importing country will approve duty-free clearance.
The permitted use, eligible goods, customs clearance procedures, and required licenses or permits may vary by country or region. It is important to distinguish between carnet issuance and the specific customs clearance decisions made by each country’s customs.
Details on ATA Carnet applications, lists of goods, security deposits, vouchers, customs records, re-export, re-import, return, and post-use certification are covered in the ATA Carnet section.
Positioning of SCC Carnet Operations
The SCC Carnet is a customs document used for the temporary export and import of goods between Japan and Taiwan.
While the ATA Carnet is a system used across multiple member countries and regions based on the ATA Convention and related agreements, the SCC Carnet is organized as a system based on a private agreement specifically between Japan and Taiwan.
When temporarily bringing exhibition items, product samples, or professional equipment into Taiwan, it is necessary to confirm whether the SCC Carnet rather than the ATA Carnet can be used.
Although the ATA Carnet and SCC Carnet share similar names and intended uses, they differ in terms of applicable countries and regions, usage procedures, round-trip conditions, and additional formalities.
Comparison of ATA Carnet and SCC Carnet
| Item | ATA Carnet | SCC Carnet | Common Points | Practical Notes |
|---|---|---|---|---|
| Main Usage Regions | Member countries/regions where the ATA Carnet system can be used | Between Japan and Taiwan | Used for temporary export and import of goods | Confirm the travel destination and select the appropriate carnet type |
| System Basis | International system such as the ATA Convention | Private agreement between Japan and Taiwan | Facilitates customs procedures for temporary import | Do not treat as the same system; confirm applicable conditions separately |
| Number of Uses and Routes | Depending on the application details and issued certificate structure, use may be allowed in multiple countries, etc. | Generally limited to one round trip between Japan and Taiwan | Use within the scope of the issued carnet | Handling of adding countries after issuance differs |
| Main Uses | Exhibitions, product samples, professional equipment, etc. | Exhibitions, product samples, professional equipment, etc. | Primarily for goods not intended for sale or consumption | Confirm targeted uses by country/region and type of goods |
| Return of Goods | As a principle, goods brought out must be re-exported and re-imported | As a principle, goods must be re-exported from Taiwan and re-imported into Japan | Returning goods with maintained identity is important | If goods are sold, consumed, processed, or repaired, separate procedures may be required |
| Issuing Authority | JCAA in Japan | JCAA in Japan | Application, review, and security deposit are required | JCAA does not guarantee customs decisions at the local customs office |
Main Situations Where Carnets Can Be Used
| Usage Situation | Expected Items | Requirements to Confirm | Main Parties to Confirm With |
|---|---|---|---|
| Shipment to Overseas Trade Shows | Exhibition equipment, product samples, display fixtures, etc. | Must be re-exported after exhibition; no local sales | JCAA, trade show organizers, freight forwarder, customs broker |
| Product Samples for Business Negotiations | Prototypes, samples, demonstration units, etc. | Not for inventory or sale; must be brought back to Japan | JCAA, sales representatives, customs broker |
| Filming and Broadcasting | Cameras, lighting, sound equipment, etc. | Must be recognized as professional equipment; no consumption of the goods | JCAA, local customs broker, production company |
| Performances and Concerts | Musical instruments, sound equipment, stage props, etc. | Must be re-exported after the event; usage must be permitted in the target country | JCAA, event organizers, freight forwarder |
| Technical Work and Maintenance | Measuring instruments, tools, work equipment, etc. | Use as professional tools; no goods left in the country | JCAA, local clients, customs broker |
| Exhibitions and Business Negotiations in Taiwan | Exhibit items, product samples, professional equipment, etc. | Whether covered under SCC Carnet | JCAA, Taiwanese customs broker, freight forwarder |
Main Requirements for Using Carnets
| Verification Item | Basic Requirement | Documents for Verification | Actions When Issues Arise |
|---|---|---|---|
| Temporariness | The goods will be re-exported after use abroad and are planned to return to Japan | Exhibition schedule, travel plan, return plan | If permanent export or sale is planned, consider standard export/import procedures |
| Identity | Goods’ identity can be confirmed at the time of export and re-import | Item list, model number, serial number, photos | For goods that cannot be identified, consider additional documentation or separate procedures |
| Intended Use | Recognized as for exhibitions, trade samples, professional equipment, etc. | Purpose of use, invitation letter, exhibition materials, business explanation | If use is outside the scope, check local temporary importation systems |
| Eligible Countries/Regions | Country or region where ATA or SCC Carnet can be used | List of travel countries, transit countries, countries of use | Confirm usability including transit countries |
| Validity Period | Goods must be re-exported within the carnet validity and the term specified by local customs | Carnet, validity period, customs entry section | If timely re-export seems unlikely, consult JCAA or similar early |
| Security Deposit | Provide the security deposit or security measures prescribed by JCAA | Value of goods, destination country, security-related documents | Prepare cash deposit or equivalent according to assessment results |
| Other Laws and Regulations | Obtain required export/import permits, inspections, approvals, etc., separately from the carnet | Export classification, permits, quarantine certificates, CITES documentation, etc. | Confirm with competent authorities, customs, or specialists |
Situations Where Carnets Cannot Be Used or Are Likely to Cause Issues
| Situation | Reason for Issue | Items to Confirm | Recommended Approach |
|---|---|---|---|
| Goods for sale abroad | Because this is not temporary export/import involving return to Japan | Planned sale, transfer of ownership, receipt of payment | Confirm regular export/import declarations and import taxes |
| Consumables and food products | Consumed through use and cannot be re-exported as the same items | Usage method, planned consumption, quantities | Confirm standard import procedures, quarantine, and food regulations |
| Goods to be processed locally | Possible changes in form or nature from time of export | Details of processing, added value, condition upon return | Confirm alternative procedures such as processing trade or temporary import systems |
| Items for repair | May not be recognized under carnet’s intended use | Fault details, repair contract, replacement parts | Confirm separate temporary export/import procedures for repair items |
| Goods transferred free of charge | Remained locally without re-export | Planned donation, gift, or free provision | Confirm standard export/import procedures |
| Uses not accepted in the country of use | ATA Carnet eligible uses vary by country or region | Country of use, purpose, local customs guidance | Confirm in advance with local customs broker or customs authorities |
| Prohibited or restricted goods | Carnet does not exempt export/import restrictions | Export control, hazardous materials, quarantine, Pharmaceuticals and Medical Devices Act, CITES, etc. | Obtain necessary permits and approvals; suspend transport if carnet use is not allowed |
| Inability to verify value of goods | Affects security, item list, and customs valuation | Acquisition cost, sales price, market price, valuation documents | Prepare reasonable valuation documentation |
Basic Structure of Carnet Security and Guarantee
For ATA Carnets and SCC Carnets, a security deposit or a security measure prescribed by JCAA is required at issuance to prepare for the possibility that goods may not be properly re-exported and that foreign customs authorities may demand import duties or other taxes.
The amount of security is calculated based on the value of the goods listed in the carnet and the country or region of use. The latest security rate, minimum security amount, and security handling fee should be confirmed through JCAA's official guidance at the time of application.
| Category | Details | Return / Settlement | Practical Notes |
|---|---|---|---|
| Cash Security | A method where the specified amount is deposited as security with JCAA | Returned after carnet submission if usage details and documents are in order | Proper return of the original carnet, security-related documents, and required customs records is necessary |
| Security Measure | An alternative to cash security available if the applicant meets JCAA’s prescribed screening criteria | The security handling fee is generally non-refundable and distinct from cash security refund | Screening criteria and eligibility should be confirmed for each application |
| Additional Security | Security additionally required due to added countries of use, changes in goods values, etc. | Returned or settled after confirmation following the end of use | Confirm with JCAA before making changes after issuance |
| Security Return Hold | Occurs when customs records are lacking, carnet is not returned, or issues arise in usage | Return may be withheld until problems are resolved | Promptly confirm local customs stamps, electronic records, re-export certificates, and similar proof |
| Guarantee Claim | When foreign customs authorities impose import duties or similar claims | Costs may be deducted from the security after verification of facts | Contact JCAA immediately if sales, abandonment, expiration, or similar situations occur |
Simply returning the carnet to JCAA does not automatically result in the immediate return of all security deposits. It is necessary to verify that the carnet usage records, customs processes, re-export/re-import of goods, and submitted documents have no issues.
Differences in Roles between JCAA and Related Parties
| Party | Main Role | Decisions They Can Make | Decisions They Generally Do Not Make |
|---|---|---|---|
| JCAA Arbitration and Mediation Contact | Rules, filing procedures, and process management for arbitration and mediation | General procedures based on JCAA rules | Preliminary judgment on whether a party’s claim is legally valid |
| JCAA Carnet Contact | Issuance, security, use, and return guidance for ATA and SCC Carnets | Issuance requirements and JCAA-prescribed procedures for Carnets | Final customs clearance decisions by each country’s customs authorities |
| Exporting and Importing Country Customs | Export/import declarations, Carnet clearance, and inspection of goods | Customs procedures and duty exemption application within the country | Filing of arbitration claims with JCAA or arbitration rulings |
| Freight Forwarder | Transport reservations, document guidance, customs clearance and delivery coordination | Transportation and practical arrangements within the delegated scope | Arbitration rulings, legal advice, and customs duty exemption guarantees |
| Customs Broker | Customs declarations and clearance procedures in exporting and importing countries | Declaration methods, required documents, and correspondence with customs | Legal judgments on Carnet issuance screening and contractual disputes |
| Attorney | Contracts, arbitration, mediation, statute of limitations, and dispute handling | Legal judgment and representation in individual cases | Import Permits granted by customs authorities |
| Carnet Holder | Application content, goods management, proper use, and return | Verification of facts such as purpose of use, user, goods, and schedule | Final decision by foreign customs on duty exemption eligibility |
Scope of Freight Forwarder Involvement
The five classifications used in this article are not established by law or industry-wide consensus. They serve as an analytical framework within this series to clarify the scope of freight forwarder involvement.
| Standard Five Classifications | Main Involvement with JCAA and ATA Carnet | Scope of Capable Response | Scope Generally Not Capable of Response | Reference Documents |
|---|---|---|---|---|
| Simple Intermediary | Conveying information on JCAA guidance, application destinations, and required documents | Communication, document exchange, general procedural guidance | Arbitration decisions, guarantees on issuance of Carnet, customs rulings | Request emails, quotations, informational materials |
| Cargo Transportation Service Provider | Contracted for international transport of Carnet cargo and arranging customs brokers, etc. | Transport planning, ocean/air shipments, customs coordination, return arrangements | Unlimited responsibility for cargo management on behalf of Carnet holder | Transport contracts, B/L, AWB, operational instructions |
| NVOCC / House B/L Issuer | Issuing House B/L and undertaking sea carriage of Carnet cargo | Sea transport, transport documentation, coordination with Actual Carrier | JCAA Carnet guarantee functions or role as arbitration body | House B/L, Master B/L, transport clauses |
| Door-to-Door Single Contractor | Comprehensive arrangement from collection to exhibition venue and return | Integrated management of transport, customs clearance, venue delivery, storage, repacking, and return | Automatically assuming liability for local sales, expired deadlines, or violations of other laws | Consolidated quotations, service contracts, workflow charts |
| Agent / Coordinator for Specific Operations | Performing specific tasks such as Carnet application assistance, customs booking, return confirmation | Delegated individual assistance or coordination | Undelegated cargo management, local customs clearance, or deadline management | Powers of attorney, operational instructions, emails, quotation terms |
Contracting Carrier and Actual Carrier are legal or contractual status concepts and do not replace the standard five classifications used in this article.
Practical operations such as Carnet application, customs clearance, cargo inspection, venue delivery, storage, repacking, and return do not by themselves constitute a sixth classification.
Practical Decision-Making Flow Regarding JCAA
- Distinguish whether the inquiry concerns a contractual dispute or temporary export/import.
- For contractual disputes, verify whether the contract contains arbitration or mediation clauses.
- If arbitration clauses are present, confirm the designated arbitration institution, arbitration rules, seat of arbitration, governing law, and language to be used.
- For temporary export/import cases, check whether the destination is a country or region covered by the ATA Carnet, or if it involves an SCC Carnet for Taiwan.
- Confirm whether the goods fall under the applicable uses such as exhibition items, commercial samples, or professional equipment.
- Verify that sales, transfer, consumption, processing, or repairs will not be conducted locally.
- Organize relevant details such as item value, quantity, serial numbers, photos, and planned re-importation.
- Separately confirm export/import regulations, other applicable laws, quarantine requirements, hazardous materials regulations, and CITES compliance.
- Contact the relevant JCAA office responsible for arbitration, mediation, or Carnet matters.
- For issues that cannot be resolved solely by JCAA guidance, consult lawyers, customs officials, customs brokers, or the competent administrative authorities.
Common Practical Issues
| Case | Main Cause | Reference Documents | Key Points for Judgment | Initial Response |
|---|---|---|---|---|
| Consulting the Carnet desk for arbitration matters | Failure to distinguish the responsible divisions within JCAA | Contract, consultation details | Differentiate whether the inquiry concerns dispute resolution or Carnet issuance | Organize the inquiry and contact the arbitration/mediation desk |
| Asking the arbitration desk about customs clearance decisions on Carnets | Assuming all departments in the same organization make identical decisions | Carnet, list of goods, destination country, usage | Separate the roles of the Carnet desk, customs, and customs broker | Confirm with both the Carnet desk and the customs broker |
| Applying for an ATA Carnet for Taiwan | Failure to confirm the difference between ATA Carnet and SCC Carnet | Destination, purpose of use, transport route | Confirm whether SCC Carnet can be used for Taiwan | Check the Carnet type with JCAA before application |
| Selling goods locally after an exhibition | Did not clarify the sales plan at the time of application | Sales contract, inventory list, Carnet goods list | Goods not re-exported may violate Carnet conditions | Immediately consult local customs, JCAA, and customs broker |
| Product serial numbers do not match the goods list | Insufficient verification during application or shipment | Goods list, product photos, packing details | Whether identity can be proven becomes the issue | Verify all items before export, and if errors exist, confirm correction procedures |
| Insufficient re-export records at local customs | Failure to confirm Carnet processing status | Original Carnet, customs records, transport documents | Confirm whether re-export proof can be provided | Check with local customs broker and JCAA about alternative proof availability |
| Storing goods beyond the Carnet validity period | Exhibition postponement, repairs, transport delays, etc. | Carnet, validity period, storage records, customs instructions | Confirm separately the Carnet expiry and local customs re-export deadlines | Consult JCAA, local customs, and customs broker before expiry |
| Assuming import regulations do not need to be checked if a Carnet exists | Confusion between duty exemption customs clearance and Import Permit | Goods specifications, composition sheets, permit documents | Carnet does not exempt compliance with other legal regulations | Confirm with competent authorities, customs, and specialists |
Example 1: Including a JCAA Arbitration Clause in an International Logistics Contract
Suppose a Japanese company and a foreign logistics service provider enter into an international logistics contract, and the contract merely states that "disputes shall be resolved by arbitration in Japan."
This statement alone may not clearly specify whether JCAA is designated as the arbitration institution, which arbitration rules will apply, the specific arbitration venue, the language to be used, or the number of arbitrators.
If JCAA arbitration is intended to be used, it is advisable to review JCAA’s model arbitration clause when concluding the contract and explicitly include the arbitration institution, arbitration rules, venue, language, and governing law in the contract.
Regarding contractual liability, limitation of liability, damages, and the statute of limitations for claims, it is necessary to consult not only JCAA’s general procedural guidance but also an attorney experienced in international transactions.
Concrete Example 2: Using an ATA Carnet for an Overseas Trade Show
Assume a Japanese manufacturer plans to bring expensive measuring instruments to an overseas trade show and then return them to Japan after the exhibition ends.
In this case, the first step is to confirm whether the exhibition items are recognized as eligible uses for an ATA Carnet in the destination country.
Next, the item names, model numbers, serial numbers, quantities, values, and countries of origin should be organized, and the manufacturer applies to the JCAA for the issuance of the carnet. At the same time, the applicable security deposit or security arrangements, based on the item values and country of use, should be confirmed.
The freight forwarder can coordinate transportation, carnet customs clearance, on-site delivery, and return shipping. However, the carnet holder must also ensure that the exhibited items are not sold locally, that the list of goods matches the actual items, and that the original carnet is properly managed.
Specific Example 3: Bringing Product Samples into Taiwan
A Japanese company temporarily brings product samples into Taiwan for business negotiations, then takes them back to Japan after the negotiations conclude.
In this case, the availability of using an SCC Carnet, rather than an ATA Carnet, should be confirmed.
Since the SCC Carnet system is used for temporary export and import specifically between Japan and Taiwan, it generally does not allow adding countries other than Taiwan to the same carnet.
If the product samples are intended to be sold or transferred in Taiwan, instead of temporary import under the SCC Carnet, a regular import declaration, import duties, and Taiwan’s import regulations must be checked.
Specific Example 4: Leaving Carnet Goods on Site
After the exhibition ends, suppose some of the exhibited items are provided free of charge to a local agent, and only the remainder is returned to Japan.
The Carnet generally assumes that the goods listed in the goods declaration will be re-exported and returned to Japan. Even if provided free of charge, goods left on site have not been re-exported.
In this case, local customs could require switching to regular import procedures, payment of import taxes, and obtaining the necessary Import Permit may become issues.
The Carnet holder must promptly contact the JCAA, the local customs broker, and customs authorities to confirm how to handle the Carnet, tax payments, and any impact on the security deposit.
Decision Checklist
| Check Point | Contact Party | Items to Confirm | Action if Issues Arise |
|---|---|---|---|
| When Concluding International Contract | Contract Partner, Legal Department, Lawyer | Arbitration Institution, Rules, Arbitration Venue, Governing Law, Language Used | Revise contract clauses with reference to JCAA model clauses, etc. |
| When Commercial Dispute Occurs | JCAA Arbitration/Mediation Contact, Lawyer | Arbitration Agreement, Filing Procedure, Deadline for Litigation, Evidence | Consult a specialist before the deadline expires. |
| When Considering Use of Carnet | JCAA Carnet Contact, Freight Forwarder | Eligible Countries, Usage, Goods, Schedule, Value | If not eligible, consider usual temporary import systems, etc. |
| During Transportation to Taiwan | JCAA, Local Customs Broker in Taiwan | Availability of SCC Carnet, Round-trip Route, Eligible Goods | Confirm application procedures without confusing with ATA Carnet. |
| When Confirming Security | JCAA, Accounting Department | Security Amount, Security Method, Security Handling Fee, Conditions for Return | Confirm required funds and timing of return before transportation. |
| When Preparing Goods List | Carnet Holder, Freight Forwarder, JCAA | Item Name, Quantity, Value, Serial Number, Country of Origin | Correct before issuance if inconsistent with actual goods. |
| When Confirming Export/Import Regulations | Customs, Relevant Authorities, Customs Broker | Export Permit, Import Permit, Quarantine, Dangerous Goods, CITES, etc. | Reconsider transportation if necessary permits cannot be obtained. |
| At Local Customs Clearance | Local Customs, Local Customs Broker | Processing of Carnet Certificate, Goods Inspection, Re-export Deadline | Request correction before departure if processing omissions occur. |
| When Returning Goods | Freight Forwarder, Customs Broker, Carnet Holder | Return of All Goods, Re-export Records, Re-import Records in Japan | Immediately investigate any missing goods or record omissions. |
| At Carnet Return | JCAA Carnet Contact | Original Carnet, Customs Records, Security Return Documents | If issues arise, submit additional required supporting documents. |
Common Misunderstandings
| Misunderstanding | Actual Understanding | Practical Notes |
|---|---|---|
| The JCAA arbitration desk also makes customs clearance decisions for ATA Carnets | Arbitration/mediation and Carnet services have different purposes and inquiry categories | The appropriate desk is assigned according to the content of the inquiry |
| If JCAA issues a Carnet, foreign customs must exempt taxes | The final customs clearance decision is made by the customs authorities of each country/region | Local customs brokers and customs procedures should also be confirmed |
| ATA Carnets can be used as is in Taiwan | For Taiwan, whether SCC Carnets can be used should be confirmed | Select the type of Carnet based on the destination |
| Using a Carnet eliminates the need for export/import permits | Carnets do not exempt permits or approvals required under other laws | Export controls, quarantine, Pharmaceuticals and Medical Devices Act, CITES, etc. should be separately confirmed |
| There is no problem selling goods after the exhibition ends | Carnets assume the goods will be re-exported in principle | If selling, confirm procedures such as switching to normal import |
| If you ask a freight forwarder, the Carnet holder does not need to check anything | The freight forwarder's responsibility depends on the contract and delegation scope | The Carnet holder should also verify the goods list, purpose, deadline, and return |
| If the Carnet is returned to JCAA, the security deposit will always be immediately refunded | Confirmation that usage records and customs procedures have no issues is necessary | Prepare the original Carnet, security-related documents, and substitute proofs |
| Including JCAA in the arbitration clause means no other terms are necessary | Arbitration rules, arbitration venue, language, governing law, etc. must also be confirmed | Refer to model arbitration clauses at contract signing |
| Filing for JCAA mediation compels the other party to comply with the resolution | Mediation focuses on reaching agreement between the parties involved | Confirm arbitration or litigation clauses if no agreement is reached |
| Security fees are fully refunded upon Carnet return | Cash deposits and security handling fees have different refund handling | Confirm the security method and nature of costs at application |
Relevant Laws, Regulations, and Systems
| Law, Regulation, System | Main Scope | Relation to This Article | Points to Confirm |
|---|---|---|---|
| Arbitration Act | Arbitration procedures with Japan as the seat of arbitration | Concerns arbitration agreements, arbitral tribunals, court involvement, and arbitral awards | Confirm latest laws and expert opinions for individual cases |
| JCAA Commercial Arbitration Rules | Commercial arbitration administered by JCAA | Relates to filing claims, appointment of arbitrators, procedural progress, and costs | Check applicable rules at contract and arbitration commencement |
| JCAA Commercial Mediation Rules | Commercial mediation administered by JCAA | Concerns mediation filing, mediators, costs, and conclusion of procedures | Ensure no confusion with the arbitration rules |
| ATA Convention and Related Treaties | Temporary importation of goods via ATA Carnet | Forms the basis for the international guarantee and customs system of Carnets | Confirm participation, permitted uses, and operations by country/region |
| SCC Carnet System | Temporary export/import of goods between Japan and Taiwan | Concerns issuance and customs clearance of SCC Carnet | Confirm as a separate system from ATA Carnet |
| Customs Act and Related Customs Laws | Export/import declarations and re-imports in Japan | Relevant for Carnet customs clearance, re-import duty exemption, and customs confirmation | Confirm not only Carnet procedures but also general customs formalities |
| Export/Import Controls and Other Laws | Dangerous goods, food, medical devices, animals and plants, cultural properties, etc. | Concerns permits, approvals, and inspections separate from Carnet | Confirm competent authorities and regulations for each type of goods |
Situations to Consult Maritime Lawyers, Customs Brokers, etc.
| Situation | Consultation Contact | Reason for Consultation | Documents to Prepare |
|---|---|---|---|
| JCAA arbitration clause is ambiguous | Lawyer familiar with international transactions | To determine validity of arbitration agreement, arbitration venue, governing law, etc. | Contract, Clause, negotiation records |
| A dispute has already arisen | Lawyer, insurance company | To confirm filing deadlines, evidence, liability, potential for recovery, etc. | Contract, invoices, accident materials, communication records |
| Carnet cargo was sold locally | Local customs broker, customs office, JCAA | To confirm switching to normal import, import duties, and impact on the JCAA guarantee | Carnet, list of goods, sales documentation, inventory records |
| Customs records are insufficient | JCAA, customs broker, customs office | Because substitute proof may be needed for re-export and re-import | Transport documents, photos, inventory records, customs communications |
| Export/import controlled goods are included | Relevant government agency, customs broker, expert | Because separate permits, inspections, or approvals besides Carnet are required | Specifications, composition list, usage, quantity, countries of transit |
| Goods do not return within the deadline | JCAA, local customs office, customs broker | Because overdue return affects taxes, guarantee claims and return of security | Carnet, validity period, customs deadlines, storage and transport records |
Summary
The Japan Commercial Arbitration Association (JCAA) serves as an institution handling arbitration and mediation for commercial disputes, and simultaneously acts as the issuing and guaranteeing body for ATA Carnets and SCC Carnets in Japan.
- Although arbitration/mediation and Carnet-related operations are both performed by the JCAA, their purposes, legal bases, procedures, and contact points differ.
- Arbitration is a dispute resolution process based on an arbitration agreement, and at the time of contract conclusion, the arbitration institution, arbitration rules, arbitration seat, governing law, and language of arbitration should be confirmed.
- Details of arbitration procedures can be found in Arbitration Procedures: Frequently Asked Questions.
- ATA Carnets are used for the temporary export and import of items such as exhibition goods, commercial samples, and professional equipment.
- For temporary export/import to Taiwan, the availability of an SCC Carnet should be verified.
- Details on Carnet application, security, lists of goods, vouchers, customs clearance, re-export, re-import, and return procedures are available under ATA Carnet.
- When issuing Carnets, security or security measures are required according to the value of goods and the countries of use.
- Even when using a Carnet, customs clearance decisions, export-import regulations, and other statutory procedures of each country are not exempted.
- When requesting services from freight forwarders or customs brokers, the Carnet holder should verify the intended use, items, validity period, customs records, and return status.
- When making inquiries, it is important to clearly distinguish whether the consultation concerns arbitration/mediation or ATA/SCC Carnets.
If legal judgments are required regarding arbitration agreements, the arbitration seat, governing law, limitation periods for filing, etc., consult a lawyer. For issuance, security, and return of ATA or SCC Carnets, refer to the JCAA Carnet-related contact points. For specific customs clearance and regulations in export/import countries, confirm with customs authorities, customs brokers, or the competent government agency.
This article explains the general functional division between JCAA's arbitration/mediation services and Carnet operations. It does not guarantee legal judgments on individual contracts, arbitration outcomes, Carnet issuance, exemptions from import duties, customs clearance at each country's customs, or return of security. Actual responses should be determined individually based on contracts, the latest JCAA rules and guidance, Carnet details, customs practices of each country, and relevant laws and regulations.
