Document Retention and Customs Verification When Using EPA
Interlink編集部Document Retention and Customs Verification When Using EPAs
Document retention and customs verification when using EPAs refers to the practice of maintaining original documentation supporting the proof of origin even after applying EPA tariff rates, to remain prepared for any post-import customs verification.
Utilizing an EPA is not simply a matter of submitting a Certificate of Origin under a third-party certification system or an Origin Declaration under a self-declaration system at import. Customs authorities in the importing country may conduct post-import checks to verify whether the cargo genuinely qualifies as an originating product under the agreement.
If the required documents cannot be presented, preferential tariff rates may be denied even if the goods actually qualify as originating products.
Therefore, companies using EPAs must organize and preserve origin determination materials, commercial documents, manufacturing records, transport documents, supplier data, and internal correspondence not only at the time of declaration but also with an eye toward potential customs verification after import.
Scope Covered in This Article
| Item | Contents Covered in This Article | Contents Covered in Other Articles |
|---|---|---|
| Document Retention after Using EPA | Covers which documents should be retained after applying EPA tariff rates. | Detailed rules of origin for each agreement are covered in individual articles on CPTPP, RCEP, Japan-EU EPA, and other EPAs. |
| Customs Post-Verification | Addresses basic responses when customs conducts origin verification after Import Permit issuance. | Details on customs audits, amended declarations, correction requests, and additional taxes are covered elsewhere. |
| Retention Period | Discusses how to determine retention periods from the perspectives of importers, exporters, and producers. | Latest retention obligations per agreement, domestic laws, and implementation rules should be confirmed from official sources. |
| Origin Documentation | Covers retention of PSR, CTC, RVC, manufacturing process documents, raw material evidence, and supplier records. | Detailed determination methods for PSR, CTC, and RVC are addressed in specialized articles. |
| Transshipment Criteria | Covers retention of transport documents needed for third-country transit, transshipment, and temporary storage. | Details on B/L, Sea Waybill, through Bills of Lading, and Air Waybills are covered in documents-specific articles. |
| Scope of Freight Forwarder Involvement | Organizes which areas freight forwarders can assist with and which matters should not be definitively judged. | Legal responsibility of customs brokers, customs clearance delegation, and individual declaration decisions are discussed separately. |
| Verification Response | Covers customs inquiries, exporter/producer inquiries, submission of response documents, and effects on past shipments. | Details on verification procedures by agreement are covered in each EPA’s origin procedure articles. |
| Internal Management | Discusses impacts of personnel changes, transaction termination, past shipments, and cases involving the same supplier. | Design of internal rules, contract clauses, and document management systems are treated in separate internal management articles. |
Why Document Retention Becomes Important When Using EPAs
EPA preferential tariff rates are applied on the assumption that the cargo qualifies as an originating product under the agreement. Customs authorities may verify the cargo’s origin not only at the time of import declaration but also retrospectively after the Import Permit is granted.
In such verification, merely stating that the cargo is indeed originating is insufficient. Customs will assess origin based on the submitted documents and retained supporting materials.
Therefore, even if the actual origin criteria are met, lacking proper evidence documentation could result in the denial of preferential tariff treatment.
This is especially critical when using the self-declaration system, where the person preparing the Origin Declaration must retain materials that can explain why the cargo was determined to be originating.
Basic Structure of EPA Document Retention
For EPA document retention, it is essential to clarify who determines origin, who prepares the declaration, and who holds the supporting documentation.
| Role | Main Responsibilities | Documents to Retain / Verify | Notes |
|---|---|---|---|
| Importer | Submits the import declaration applying EPA tariff rates. | Import declaration documents, Certificate of Origin under third-party certification systems, Origin Declaration under self-declaration systems, origin verification materials, customs clearance documents | Even when using declarations prepared by exporters or producers, a communication system for customs verification should be established. |
| Exporter | May prepare and provide the Origin Declaration to the importer. | Copy of the Origin Declaration, transaction documents, supplier documents, information from producers | If the exporter is a trading company, they may not possess manufacturing information. |
| Producer | Holds actual manufacturing process and raw material information. | Manufacturing process charts, parts lists, material lists, cost data, RVC calculation data, production records | Often holds the most comprehensive supporting documentation for origin. |
| Supplier | Provides origin information for raw materials or components. | Supplier certificates, material certifications, proof of origin, supporting materials | Not only certificates but also the underlying supporting documentation may be required. |
| Freight Forwarder / Customs Broker | Assists with transport documents, customs paperwork, and verification of transshipment standards. | B/L, Sea Waybill, Air Waybill, transshipment records, customs documents | They are not responsible for determining origin. |
If the importer self-declares, they must verify the basis for origin determination including HS codes, product-specific rules of origin, manufacturing process, raw materials, and cost calculations.
Even when the exporter or producer prepares the Origin Declaration, the importer, as the party applying for EPA tariff rates, should maintain a communication system to respond to customs verification requests.
Considerations for the Retention Period
The retention period for EPA-related documents varies depending on the agreement, domestic laws, and the declaring party.
When applying EPA tariff rates for imports into Japan, importers are generally required to retain documentation related to the import declaration and origin for a specified period starting from the day after the Import Permit date.
In standard import procedures, it is customary to retain import-related documents for five years from the day after the Import Permit date. However, under the EPA self-declaration system, the retention period on the exporter’s or producer’s side may vary depending on each agreement.
Therefore, rather than simply memorizing “EPA documents must be kept for five years,” it is necessary to verify the retention period according to the applicable agreement, importing country, declaring party, and certification method.
Retention Periods by Agreement and Party
| Agreement / System | Retention by Importer | Retention by Exporter / Producer | Practical Notes |
|---|---|---|---|
| CPTPP | When importing into Japan, it is standard to retain import declarations and origin-related documents for five years from the day after the date of the Import Permit. | For exporter or producer self-declarations, retaining Origin Declarations and related documents for five years from their creation date is typically required. | Confirm which party—importer, exporter, or producer—prepared the Origin Declaration. |
| RCEP | In Japan, the importer’s retention obligation is organized as five years from the day after the Import Permit date. | Depending on the method—exporter/producer self-declaration, third-party certification, or authorized exporter system—retention for three years from the creation or issuance date is relevant. | The point of confirmation varies depending on whether it is third-party certification, authorized exporter, or self-declaration. |
| Japan-EU EPA | The importer must retain documents related to the originating status of goods for five years from the day after the Import Permit. | The exporter is required to retain copies of origin-related statements and records concerning originating status for at least four years. | Exporter self-declarations may require confirmation through the exporting country’s customs authorities in some cases. |
| Japan-UK EPA | For the importer, retention obligations begin after the Import Permit along with managing supporting materials for origin explanations. | For exporter or producer self-declarations, retention for four years from the creation date is usually required. | The structure is similar to the Japan-EU EPA, but exact wording and implementation materials specific to the agreement should be reviewed. |
| EPAs adopting third-party certification systems | The importer retains the Certificate of Origin, import declaration materials, and transactional documents. | The issuing authority in the exporting country, exporter, and producer may be required to keep documentation supporting the issuance. | Even when a certificate exists, verifying supporting documentation for issuance may be necessary. |
| Other EPAs | Retention periods and required document types vary by agreement. | Exporter, producer, and issuing authority retention obligations differ per agreement. | Confirm applicable domestic laws, agreement texts, and customs materials for each EPA applied. |
Retention periods may change due to system revisions or agreement operation updates. When applying preferential EPA tariff rates in practice, it is essential to verify the latest customs documents, official agreement texts, and customs clearance requirements for each relevant agreement.
Practical Workflow When Using EPA
When utilizing an EPA, the first step is to identify which EPA applies to the cargo. Even when dealing with the same country, multiple agreements may be available.
Next, confirm the HS code. Since EPA rules of origin vary by product, an incorrect HS code could lead to errors in verifying the product-specific rules of origin.
Then, check the product-specific rules of origin (PSR). These include criteria such as Change in Tariff Classification (CTC), Regional Value Content (RVC), and processing requirements. It is important to confirm which criteria must be fulfilled.
After confirming origin, prepare the necessary documents according to the applicable agreement and certification system, such as Certificates of Origin under third-party certification systems, Origin Declarations under self-declaration systems, and Origin Declaration Details.
At the same time, organize the supporting documents that form the basis of the declarations, including manufacturing process charts, raw material lists, cost calculation data, supplier certificates, and transport documents.
When filing the import declaration, submit the required documents and declare the application of the EPA preferential rates. Even after the Import Permit is issued, customs may conduct post-clearance audits. Therefore, it is important to retain all related documents and maintain communication with exporters, producers, suppliers, and customs brokers.
Key Documents to Be Retained
The documents that must be retained when using an EPA vary depending on the agreement, certification system, declarant, and cargo details. In practice, organizing the document types and responsible parties as shown below helps facilitate customs verification.
| Document Category | Main Documents | Primary Retaining Parties | Purpose of Verification |
|---|---|---|---|
| Documents Related to Declaration and Certification | Certificate of Origin under third-party certification systems, Origin Declaration under self-declaration systems, Origin Declaration Details, origin statements | Importer, exporter, producer | Demonstrate the basis for applying EPA tariff rates. |
| Documents Related to Transactions and Customs Clearance | Commercial Invoice, Packing List, Import Permit Notice, customs declaration supporting documents, contracts, purchase orders, delivery notes | Importer, customs broker, exporter | Verify transaction details, cargo description, declaration content, and pricing. |
| HS Code and PSR Verification Documents | HS code confirmation documents, product-specific rules of origin confirmation, classification basis documents | Importer, exporter, producer | Confirm the applicable origin rules. |
| Documents Supporting Origin | Manufacturing process sheets, raw material lists, parts lists, material lists, input records, manufacturing records, shipment records | Producer, exporter, importer | Explain where, with what materials, and how the products were made. |
| RVC Calculation Documents | Cost calculation documents, material cost data, non-originating material prices, FOB values, calculation worksheets | Producer, exporter, importer | Demonstrate compliance with value-added criteria. |
| Supplier-Related Documents | Supplier certificates, material certifications, origin evidence for raw materials and components, supporting documents for certificates | Producer, exporter, supplier | Explain the origin of raw materials and components. |
| Documents Regarding Transport and Transshipment Criteria | B/L, Sea Waybill, Air Waybill, through Bill of Lading, transshipment records, bonded storage documents in third countries, transport requirement certificates | Importer, exporter, freight forwarder, customs broker | Confirm compliance with direct shipment requirements or transshipment standards. |
| Records for Responding to Customs Verification | Customs inquiry letters, reply letters, records of submitted additional documents, communication records with exporters, producers, and suppliers | Importer, exporter, producer | Document the circumstances and content of post-verification responses. |
While Origin Declarations and supplier certificates are important, they may not be sufficient on their own. During customs verification, manufacturing documents, raw material data, calculation records, and transport documents supporting these declarations or certificates may also be requested.
Scope of Freight Forwarder Involvement
Freight forwarders may assist in verifying the consistency of customs and transport documents when utilizing EPA benefits. However, they are generally not positioned to determine the origin status of cargo themselves.
Determining origin requires information such as HS codes, product-specific rules of origin, raw materials, manufacturing processes, cost calculations, and supply chain data. These are details that importers, exporters, and producers should know, and cannot be judged by the freight forwarder alone.
| Category | What Can Be Supported | What Should Not Be Concluded | Practical Response |
|---|---|---|---|
| Transport Documents | Assistance with verifying B/L, Sea Waybill, Air Waybill, and through Bill of Lading is possible. | It should not be concluded solely based on transport documents that the cargo qualifies as an EPA originating product. | The origin determination should be confirmed by the importer, exporter, producer, customs broker, or experts. |
| Shipment Criteria | Support can be provided for obtaining documents related to transshipment through third countries, transfer, temporary storage, and bonded control. | Concluding that shipment criteria are met without clear knowledge of whether processing or alteration occurred at transshipment points is not advisable. | At the time of transport arrangement, confirm whether through B/L, transshipment records, and bonded storage documentation can be obtained. |
| Customs Documents | Assistance with verifying consistency among invoices, packing lists, and import declaration documents is possible. | Having properly formatted documents should not be taken as definitive proof of origin. | Separate format verification from origin determination, and have the importer manage the location of origin-related documents. |
| Certificate of Origin / Origin Declaration | Confirming whether a Certificate of Origin under a third-party certification system or an Origin Declaration under a self-declaration system is included in the full set of customs documents is possible. | It should not be concluded that the certificate or declaration contents are correct or that the product satisfies the PSR. | Confirm which certification system is being used, who prepared the declaration or certificate, and who holds the supporting documentation. |
| HS Codes | Sharing HS code information received from the importer, exporter, and customs broker is possible. | Specialized classification judgments or conclusions on PSR compliance based solely on HS code are not appropriate. | If there is any doubt about the HS code, the importer or customs broker should verify the classification basis. |
| Customs Inquiry Response | Support can be provided by submitting transport records, document transmission history, in-gate/out-gate records, and communication logs. | Explaining manufacturing processes, raw materials, RVC calculations, or supplier certifications on behalf of the parties involved is not recommended. | The freight forwarder should focus on supporting logistics documentation and pass responsibility for origin explanations to those who hold the relevant documents. |
Regarding the applicability of EPA use and determination of origin, it is practically safer for importers, exporters, and producers to take primary responsibility, consulting customs brokers, experts, or customs authorities as needed.
Post-Import Verification by Customs
Post-import verification by customs is a procedure conducted after import to confirm whether cargo imported under an EPA preferential tariff rate truly qualifies as originating goods under the agreement. This procedure is referred to as "Verification" in English.
During post-import verification, customs may request the importer to submit documentation or provide explanations to verify the origin of the goods.
Under the self-declaration system, the person who prepared the Origin Declaration or who holds the supporting documents for origin will typically be the main contact for responding to verification.
If it is not possible to respond to the verification or if the submitted documents fail to confirm the origin, application of the preferential tariff rate may be denied. This could result in issues such as payment of the tariff difference at the standard rate, additional penalty tax for underreporting, and interest on delayed payment.
Verification Methods by Agreement
The verification method varies depending on the agreement or certification system.
| Agreement / System | Main Verification Point | Additional Verification | Practical Notes |
|---|---|---|---|
| CPTPP | Importing country customs may verify with the importer. | When necessary, information may be requested from the exporter or producer. | Confirm who—importer, exporter, or producer—prepared the Origin Declaration. |
| RCEP | Verification points differ depending on the certification method used. | Verification is conducted based on third-party certification, authorized exporters, or self-declaration by exporter/producer as applicable. | Clearly identify which certification method was applied in the retained documents. |
| Japan-EU EPA | Importing country customs may initially verify with the importer. | If additional information is needed, verification may be conducted with the exporter or producer via the exporting country’s customs. | Indirect verification through the exporting country’s customs is crucial when using exporter self-declaration. |
| EPA Using Third-Party Certification System | Importing country customs verifies with the importer and submitted documents. | Verification may be conducted via the issuing body or customs in the exporting country. | Verification can involve not only the Certificate of Origin but also the supporting documentation for issuance. |
Verification is not simply a procedure where customs requests documents. The response procedure varies depending on which agreement is used, who prepared the declaration, and where the supporting documents are held.
General Procedures for Verification
In post-clearance verification, customs may first send the importer a questionnaire or a request for document submission.
| Stage | Main Actions | Documents to Verify | Key Points |
|---|---|---|---|
| 1. Inquiry from Customs | The importer receives a questionnaire or request for documents. | Relevant import declaration, applicable items, applicable period, response deadline | First, clarify what is being asked. |
| 2. Review of Retained Documents | Verify the Certificate of Origin under third-party certification systems, Origin Declaration under self-declaration systems, customs clearance documents, and evidence supporting origin. | PSR, CTC, RVC, manufacturing process, raw materials, shipment criteria documents | Check not only the certificate or declaration but also the presence of supporting documentation. |
| 3. Inquiry to Exporter or Producer | If necessary, obtain manufacturing and raw material documents from trade partners. | Parts lists, materials lists, cost data, supplier certificates, process charts | When dealing via a trading company, confirming that information reaches the producer is important. |
| 4. Response to Customs | Submit the response letter and documents, and explain the origin. | Response letter, attached documents, translations, supplementary explanations | Ensure consistency between explanations and submitted documents. |
| 5. Additional Verification | Customs may request additional documents or further explanations. | Additional documents, responses from trade partners, supplementary materials | Keep records of communication with exporters, producers, and suppliers. |
| 6. Confirmation of Results | If origin is confirmed, preferential tariff rates are maintained. | Communications from customs, confirmation results, internal records | If confirmation is not possible, preferential tariff rates may be denied or additional duties required. |
| 7. Recurrence Prevention | Review missing documents, contract clauses, and internal management systems. | Past declarations, identical items, cases involving the same suppliers | This may affect past cases involving the same or similar items and the same suppliers. |
When the Exporter Is a Trading Company and the Producer Is a Separate Entity
In EPA verification, when the exporter is a trading company and the producer is a separate entity, the flow of information can become complex.
While the trading company may hold invoices and transaction information, it may not possess details on manufacturing processes, parts lists, raw material origins, or cost calculation data.
| Information Flow | Information Generally Held | Risks | Practical Measures |
|---|---|---|---|
| Producer | Manufacturing process, raw materials, parts lists, costs, RVC calculation data | Might be reluctant to share information directly with the importer. | Confirm arrangements for direct submission to customs and handling of confidential information. |
| Exporter / Trading Company | Sales contracts, invoices, shipping documents, communication with suppliers | May not be able to fully explain manufacturing details. | Predefine points of contact and scope of document provision with the producer. |
| Importer | Import declaration documents, EPA application records, customs contact point | Difficulty in collecting documents if direct contact with producer is unavailable. | Confirm cooperation obligations and contact information at contracting and ordering stages. |
| Customs | Verifies origin based on submitted documents. | May determine origin cannot be confirmed if documents are insufficient. | Organize and respond regarding document consistency and any missing information. |
In such a three-tier structure, it is important before using the EPA to clarify the extent of documentation that can be provided by the producer, who will respond during customs inquiries, and how confidential information will be handled.
If necessary, establish a mechanism for the producer to submit information directly to customs or for the exporter to provide the required information through the proper channels.
Impact on Past Transactions
Post-import verification is not limited to immediately after import. Customs authorities may request origin verification for past transactions within the document retention period.
If the same error is found across multiple years of imports, it could affect past entries involving the same product, the same supplier, the same HS code, and the same product-specific rules of origin assessment.
If preferential tariff treatment is denied, issues such as the difference from the regular tariff rate, underpayment penalties, and interest on overdue taxes could arise.
In particular, errors in HS codes are not merely classification mistakes. Since a change in HS code alters the applicable PSR, it may be determined that the origin determination itself was incorrect.
Therefore, when using an EPA, it is essential to manage not only individual imports but also ongoing imports of similar cargo and potential impacts on past transactions.
Responsibilities of the Importer
As the party applying for import with EPA tariff rates, the importer must manage the Certificate of Origin under third-party certification systems, Origin Declaration under self-declaration systems, and supporting documentation that substantiate the origin of the goods.
If the importer submits a self-declaration, they need to retain the underlying documentation that supports their origin determination.
Even when relying on declarations prepared by the exporter or producer, it is important to establish a communication system with these partners to promptly provide required documents if customs requests verification.
In cases where the importer does not hold the documentation, it may be necessary for the exporter or producer to submit the documents directly to customs. Therefore, before using EPA benefits, it is advisable to confirm with business partners the cooperative framework for responding to any subsequent customs verifications.
Exporter and Producer Responsibilities
Under EPA verification, responsibilities may be required not only from importers but also from exporters and producers.
Especially in the self-declaration system, it is important that exporters and producers who prepare the Origin Declaration possess documents explaining the product’s origin.
When the exporter is a trading company but the actual manufacturing information is held by the producer, the trading company alone may not be able to provide sufficient explanations.
In such cases, producers may need to submit documents directly to customs or provide necessary information through the exporter.
Additionally, merely retaining supplier certificates may not be sufficient. During customs verification, presentation of underlying material documents, manufacturing process details, and origin determination evidence supporting the supplier certificate may be requested.
Common Misunderstandings
When retaining documents related to EPA utilization, it is common to feel secure once the EPA tariff rate has been applied at import.
| Common Misunderstanding | Practical Consideration | Points of Caution |
|---|---|---|
| Once the Import Permit is granted, confirmation of origin is complete. | Customs may conduct post-import origin verification after the Import Permit is issued. | Documents must be retained throughout the required storage period even after import. |
| The freight forwarder is responsible for document retention. | The freight forwarder acts as a supporter and may not be the main party responsible for origin determination or document retention. | Clarify the roles of importer, exporter, and producer. |
| Having a supplier’s certificate means no other documents are needed. | The supporting documentation behind the certificate may be requested. | Verify material data, process documentation, and origin determination records. |
| Verification only occurs immediately after import. | Verification may be requested for past transactions within the document retention period. | Retain documents and contact information even after personnel changes or transaction completion. |
| If the exporter is a trading company, the trading company can explain everything. | Manufacturing information may be held by the producer. | Establish information sharing protocols between trading company, producer, and importer in advance. |
| Because an Origin Declaration exists, RVC calculation documentation is unnecessary. | When relying on RVC as the basis, calculation methods and cost data may be required. | Retain formulas, raw material prices, FOB values, and related materials. |
| If items were verified previously, re-verification is unnecessary. | Changes in material composition, manufacturing location, suppliers, or HS codes can alter the origin determination. | Regularly review origin documentation even for ongoing transactions. |
4-Column Checklist
Document retention and customs verification when using EPA are easier to manage in practice if organized according to the stages of EPA tariff rate determination, import declaration, post-import storage management, receipt of Verification notices, and response or document submission.
| Verification Stage | Counterpart to Confirm With | Items to Check | Actions if Issues Arise |
|---|---|---|---|
| At EPA Tariff Rate Determination | Importer, purchasing department, customs tariff section | Applicable agreement, HS code, PSR, certification method, document availability | Confirm not only tariff benefits but also whether post-verification follow-up is feasible. |
| At Contract and Order Placement | Importer, exporter, producer | Who will prepare the declaration, who will retain supporting documents | Consider including cooperation obligations in the basic transaction contract or order conditions. |
| At Import Declaration | Importer, customs broker | Certificate of Origin under third-party certification systems, Origin Declaration under self-declaration systems, Origin Declaration Details, import declaration documents | Confirm the location of not only required documents for customs clearance but also supporting evidence. |
| During Post-Import Storage Management | Importer, customs tariff section, accounting, legal | Retention period, storage location, electronic storage, contact information of trading partners, person in charge changes | Ensure documents remain accessible even several years later. |
| Upon Receipt of Verification Notice | Importer, customs broker, customs tariff section | Relevant declarations, relevant items, relevant period, response deadline, required documents | First, clarify what is being questioned. |
| When Contacting Exporters or Producers | Importer, exporter, producer | Manufacturing process, raw materials, RVC calculations, supplier documents, handling of confidential information | When using trading companies, ensure communication channels reach the producer. |
| At Response and Document Submission | Importer, customs broker, customs response staff | Response letter, supporting documents, translations, explanatory materials, additional submissions | Check for inconsistencies among submitted documents. |
| After Verification Results | Importer, legal, accounting, purchasing department | Maintenance of preferential treatment, denial, additional taxes, impact on past transactions, recurrence prevention | Review past and future transactions involving the same item and supplier. |
Common Practical Challenges
| Case | Common Issues | Documents to Check | Practical Notes |
|---|---|---|---|
| Unable to Explain RVC | There is an Origin Declaration, but cost calculation data and non-originating material pricing cannot be provided. | RVC calculation sheet, raw material prices, FOB value, manufacturing costs, non-originating material documents | Preserve calculation data and supporting evidence together at the time of declaration preparation. |
| Supplier Certificate Alone Is Insufficient | Material data or manufacturing records supporting the supplier certificate cannot be presented. | Supplier certificate, bill of materials, manufacturing process documents, proof of origin | Do not stop at obtaining the certificate; verify the location of supporting documents. |
| Unable to Explain Transshipment Criteria for Third-Country Cargo | Transshipment or temporary storage in a third country is known, but it cannot be shown that cargo was under customs control. | Through Bill of Lading, transshipment records, bonded storage documentation, transport route information | Confirm transit points and required transport documents at the time of shipping arrangements. |
| Importer Cannot Contact Trading Partner | When checking past transactions, the exporter or producer has ended business relations. | Contracts, purchase orders, contact details, person-in-charge records, cooperation clauses | Confirm contact points and cooperation obligations for post-clearance verification during EPA application. |
| PSR Changes Due to HS Code Revision | The import customs classification changes the HS code, leading to different applicable PSRs. | HS classification basis, catalogs, specifications, component lists, PSR confirmation documents | Avoid relying solely on the exporter’s HS code; the importer should verify classification as well. |
| Exporter Is a Trading Company Without Manufacturing Information | The trading company provides the Origin Declaration, but actual manufacturing data is held by the producer. | Producer information, parts lists, process sheets, raw material documents, communication records with trading company | Establish a system to consult producers or submit documents directly to customs in advance. |
| Responsible Person Retires and Document Location Becomes Unknown | Documents become untraceable during the retention period due to personnel changes. | Retention ledger, electronic storage locations, case numbers, Import Permit numbers, handover records | Create a searchable company-wide retention system rather than relying on individual management. |
| Errors Affect Past Records of the Same Supplier | A single error impacts past imports of the same item and supplier. | Past declaration lists, cases with the same HS code, cases with the same PSR, supplier-specific documents | Upon denial, conduct comprehensive checks covering past and future records rather than isolated corrections. |
Specific Examples
Case Where RVC Could Not Be Explained
When the importer applied the EPA tariff rate for imported cargo, customs may request verification of origin.
If the cargo was determined to be originating based on the Regional Value Content criterion, documentation such as cost calculation records, material costs, manufacturing expenses, and prices of non-originating materials must be provided.
If the exporter or producer has not retained these documents, they may not be able to substantiate that the RVC requirement was met, potentially resulting in denial of the preferential tariff rate.
In this case, the RVC calculation documents and supporting evidence should have been retained at the time the Origin Declaration was made.
Case Where Supplier Certificates Alone Were Insufficient
Even if the producer determined origin based on supplier certificates, customs may request the underlying documentation supporting those certificates during verification.
If the supplier certificate exists but the supplier cannot explain the origin of raw materials or the manufacturing process, verifying origin becomes difficult.
In this case, the exporter or producer should have established a system to obtain and retain not only the supplier certificates but also their supporting documentation.
Case Where Transshipment Criteria Could Not Be Explained for Cargo via a Third Country
EPA-qualified cargo is sometimes imported into Japan via a third country. In such cases, even if transloading or temporary storage occurs in the third country, it must be demonstrated that the cargo has not lost its status as originating.
If documents such as through Bills of Lading, transshipment records, or bonded storage certificates cannot be presented, it may not be possible to prove compliance with transshipment criteria, putting the preferential tariff application at risk.
In this case, the importer and freight forwarder should have verified the transit points and confirmed the necessary transport documents for the transshipment criteria before shipment or arranging transport.
Case Where the Importer Could Not Contact Business Partners
Customs may conduct origin verification for import transactions from several years prior. If at that time the trade with the exporter or producer has ended or responsible personnel have left, it may become impossible to collect necessary documents.
In this case, the importer should have confirmed cooperation clauses with business partners, the scope of storage documentation, and contact points for post-verification communication from the time of EPA application.
Case Where Changes in HS Code Altered the PSR
The importer may apply the EPA tariff rate based on the HS code provided by the exporter, but the importing country may determine a different HS code to be appropriate.
A change in HS code also changes the relevant product-specific rules of origin. As a result, previously confirmed criteria such as Change in Tariff Classification, RVC, and processing standards may no longer apply.
In this case, the importer should have verified the basis for the HS classification and reconfirmed its alignment with the PSR before using the EPA.
Case Where the Exporter Was a Trading Company Without Access to Producer Records
When the exporter is a trading company, they may hold the invoice and contract documents, but the actual manufacturing process details, raw material information, and RVC calculation data may be held by the producer.
If customs verification occurs and the trading company alone cannot explain origin, and it is not possible to contact the producer, verifying origin becomes difficult.
In this case, before using the EPA, it was necessary to confirm what documents the producer could provide, whether they could submit documents directly to customs, and how confidential information would be handled.
Summary
When using EPA benefits, it is important not only to submit the Certificate of Origin under a third-party certification system or the Origin Declaration under a self-declaration system at the time of import but also to maintain documentation in a state that can support future customs verification.
In determining origin, emphasis is placed not only on the declaration itself but also on the underlying manufacturing records, raw material documents, cost calculation data, supplier information, and transportation documents.
Retention periods vary depending on the agreement, domestic laws, and the roles of importers, exporters, and producers; therefore, it is necessary to confirm requirements for each applicable agreement.
The verification method also differs by agreement. Under CPTPP, RCEP, and Japan-EU EPA, the party preparing the declaration and the certification method used affect the verification authority and the corresponding procedures.
Freight forwarders can assist in verifying the consistency of transportation and customs documents but are not in a position to determine origin themselves.
Companies using EPA should prepare not only for the declaration at import but also for post-import verification by establishing proper document retention, internal controls, and cooperative frameworks with business partners.
