Japanese Traders Disagree With Countries Sharing Preferential Frameworks.

Japanese officials are preparing to revise the preferential tariff system for importing products from developing countries, which is interpreted as correcting the "exclusive" status of China in the preferential framework shared by various countries. However, this practice may cause dissatisfaction among Japanese traders.

Japan began in 1971.

By April 2009, a total of 140 countries and 14 regions were enjoying preferential duties in Japan, including China.

Among them, there are 340 kinds of preferential tariff for agricultural products. About 3200 kinds of preferential tariff are enjoyed by mineral products, and 3540 are combined.

However, if some imported products cause damage to the related industries in Japan, the Japanese government may issue a decree to stop preferential duties.

In addition, if any country or region loses more than 20% of the preferential tariff paid to Japanese products, the excess part will no longer be enjoyed.

According to official statistics in Japan, in fiscal year 2009, there are 3500 kinds of preferential tariff applicable to imported products, accounting for 60% of imported products, 1180 of which are considered to have a certain impact on domestic industry.

Under the current preferential framework in Japan, the maximum utilization limit of a country is 20%.

Japan's Ministry of finance's adjustment plan is to reduce it to 10% to 15%.

The adjustment plan is scheduled to be sent to the relevant deliberations and government tax investigation committee this autumn. In 2011, the amendment to tariff provisional measures was submitted to the Congress.

The adjusted preferential tariff will be implemented in the next fiscal year.

It is learnt that the preferential tariff system has been revised once in 2001, and a country's use of the ceiling has dropped from the previous 25% to 20% now.

Japan intends to reduce this.

There is also a view that the international competitiveness of Chinese commodities is strong and no longer suitable for enjoying preferential tariff rates.

Japanese economic news takes silk ties as an example. Japan imports 10 billion yen annually. If the general tax rate is 13.4%, the tariff rate will be zero after enjoying preferential tariff.

However, reducing the upper limit of preferential tariff is a double-edged sword.

On the one hand, the increase of tariffs may hurt Chinese related export enterprises, especially the textile and garment industry with a slight profit.

On the other hand, it also increased some of the Japanese imports from China.

Japan's trade promotion agency, head of Northeast Asia Division, believes that many small and medium traders in Japan basically import clothing and daily necessities from specific Chinese producers and lower the preferential tariff ceiling, which may result in a sharp decline in the profits of these traders.

In addition, many Japanese enterprises have moved their production lines to China, and other Japanese companies are preparing to do so. The reduction of preferential tariff ceiling will have an adverse impact on these enterprises.

In short, the Japanese economy is me and I have you. If you act rashly, you will hurt yourself in turn.