The Ministry of Finance of Japan has decided not to grant the GSP preferential tariffs for Chinese goods exported to Japan since April 1, 2019. Since April 1, 2019, the Customs will no longer issue the GSP Certificate of Origin and related Japanese processing certificate for the goods exported to Japan.
The adjustment of Japan's policy is following the EU's 2015 graduation of the Chinese GSP, and another GSP to the benefit of the country to exclude China from the beneficiary countries. According to Japan's latest GSP policy, 35%-90% of China's traditional organic chemicals, plastic products and other traditional superior products will no longer enjoy the Japanese GSP treatment from 2019. Japan’s previous tariff concessions granted to China averaged about 3%, which means that the average tariff of China’s annual exports of about 12 billion U.S. dollars per year has risen by about 3%, and some commodities have even risen by as much as 10%. It is estimated that the Japanese move will increase the tariff cost of China's goods exported to Japan by nearly 300 million US dollars, which will weaken the competitiveness of China's goods in the Japanese market to a certain extent.