Import Quota in Japan
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Firstly, I would like to briefly explain the general information of import quota and import quota in Japan.
Import quotas are limitations on the quantity of goods that can be imported into the country during a specified period of time. An import quota is typically set below the free trade level of imports. There are two basic types of quotas: absolute quotas and tariff-rate quotas. Absolute quotas limit the quantity of imports to a specified level during a specified period of time. Sometimes these quotas are set globally and thus affect all imports while sometimes they are set only against specified countries. Absolute quotas are generally administered on a first-come first-served basis. For this reason, many quotas are filled shortly after the opening of the quota period. Tariff-rate quotas allow a specified quantity of goods to be imported at a reduced tariff rater during the specified quota period.
Japan began the postwar period with heavy import barriers. Practically all products were subject to government quotas, many faced high tariffs, and Ministry of International Trade and Industry (MITI) had authority over the allocation of the foreign exchange that companies needed to pay for any import. Japan's Foreign Exchange and Foreign Trade Control Law requires importers to obtain import licenses where the Government has so provided by Cabinet Order. The Import Trade Control Order implements this authority and establishes administrative responsibilities. They provide that, for products on the import quota list, the importer must apply to the MITI for allocation of the import quota. MITI carries out this allocation in consultation with the Minister with jurisdiction over the product and issues a certificate of import quota allocation. Within four months thereafter, the importer must forward the certificate of quota allocation to an authorized foreign exchange bank which...