spiritsEUROPE and FEVS had the opportunity to join this mission which took place from 8-11 May in Tokyo – a very timely and important trip: Japan is a sizeable spirits market, and the recent European Partnership Agreement (EPA) which entered into force on 1 February is opening up the door for closer economic relations and export success for European spirits in the years to come.
European spirits already enjoyed a comparatively favourable access to the Japanese market (zero MFN - most favoured nation- base rate for spirits obtained by distilling grape wine, whiskies and fruit brandies). With the EPA, other spirits have also become duty free at the entry into force (including: rum, gin, Genever, vodka and liqueurs). Only a limited number of remaining ‘other spirits’, including imitation sake and white sake, will have tariffs gradually phased out in 10 years. Importantly, numerous spirits Geographical Indications (GIs) have been protected in Japan under the EPA, and this is a direct protection, i.e. without costly and burden- some application provisions to the Japanese GI system.
One focus of discussions during the Mission was therefore to achieve a full and smooth implementation of the EPA. During the past months, it has become evident that the Japanese customs clearance procedure for certain products still needs to be brought into full compliance with the EPA. While some problems persist, the good news is that both sides are working closely on addressing this issue. A joint announcement was published by Japan Customs on 14 March and is available here. It clarified that customs must not deny preferential tariffs to importters if the additional explanations asked are not available to the importer. We hope that the problems will be resolved fully soon.
The Mission tip also proved helpful in gaining new insights into the Japanese spirits drink market and provided us with a suitable opportunity to meet and exchange views with our colleagues in the Japanese associations.
Another very important point stressed during the Mission was the joint call to the EU and Japan to work closely together to defend the rules-based international trading system in light of rising protectionism and the recent tensions between China and the US.
The Japan Mission was the last in a line of 12 successful Missions led by Commissioner Hogan during the last five years. We are hugely grateful to the Commissioner and DG AGRI for the organization and preparation. European spirits exports are at an all-time high – and we feel the Missions have clearly helped to support this sustained export success of our sector in recent years!
