Mexico-Japan EPA Quota System for Leather and Leather Shoes Representative Office in Japan of Mexico’s Ministry of Economy April, 2009

2 Legal Background in Japan ► In view of the implementation of the Mexico-Japan EPA, the Japanese government published the Decree #35 to establish the import quota system for certain Mexican products ► Applications for leather and leather shoes quotas are to be made to the Minister of Economy, Trade and Industry (METI)

3 1. When to Apply? ► Official announcements are made twice a year, in March for the first period of a fiscal year (from April to September), and in September for the second period (from October to March) ► Applications for the first period are received in March for half of the total annual amount established in the EPA; those for the second period are received in September for the other half of the total annual amount ► As long as there is available amount left for each period, additional applications are accepted every month during the same period

4 2. Where to Apply? ► Applications may be submitted at METI’s Headquarter in Tokyo and the following regional offices of METI and the Cabinet Office in Okinawa:  Hokkaido Bureau of Economy, Trade and Industry (Sapporo)  Tohoku Bureau of Economy, Trade and Industry (Sendai)  Kanto Bureau of Economy, Trade and Industry (Saitama)  Chubu Bureau of Economy, Trade and Industry (Nagoya)  Kansai Bureau of Economy, Trade and Industry (Osaka)  Chugoku Bureau of Economy, Trade and Industry (Hiroshima)  Shikoku Bureau of Economy, Trade and Industry (Takamatsu)  Kyushu Bureau of Economy, Trade and Industry (Fukuoka)  Okinawa General Bureau (Naha)

5 3. Who can apply? ► Applicants must be importers who possess contract documents under their own names for the purchase of Mexican leather or leather shoes to be shipped directly from Mexico and with the intention to sell the imported products ► Based on the Mexico-Japan EPA, Mexican products that qualify for the importation under the Quota System must carry a Certificate of Origin issued by Mexico’s Secretary of Economy (at the Headquarter in Mexico City or in State offices) ► Required contract documents include not only the import contract but also purchase order or proforma invoice that demonstrates name, quantity, and value of the merchandise, loading port, and estimated date of loading and is signed by the contractant

6 4. Required Documents ► Documents required for the initial application in a period are:  Quota Allocation Application (Ministerial Decree Form #1 ） : 2 copies  Business Confirmation Letter （ Public Notification Form #1 ） : 1 copy  Certificate of Seal Impression: 1 copy  Sales Contract Documents (original & copy): 1 copy of each  Import Plan, Translation in Japanese of Sales Contract Documents, if necessary ► Formats may be downloaded at METI’s website: trol/mexicotariff/application.htm

7 5. Important Notes ► Date of Expiration of the quota for the first period is the end of March; for the second period is the end of September ► Names and addresses of the importers to whom the quota has been allocated are published in METI’s Bulletin of Economy and Industry and JETRO Daily ► Quota Allocation Certificate must be returned to the office to which the application was submitted in any of the following cases:  When all the quantity of allocated quota has been used  When the quota certificate has expired  When the importer decides not to use the allocated quota any more ► Applicants whose actual import quantity of the products is less than 90% of the quantity of allocated quota are not allowed to participate in the initial application for the same period of the following year

8 6. Quotas for Leather (Cow and Horse) ► HS of applicable products: , , , , , , , , , , , , ► Available amount (Apr.1 to Mar.31): non-colored leathercolored leather non-colored leathercolored leather ,000 m2 15,000 m ,000 m2 18,000 m ,000 m2 22,000 m ,000 m226,000 m ,000 m226,000 m ,000 m2 31,000 m2 ► Amount of the Quota allocated: From April 1, 2007 to Mar. 31, 2008: non-colored: 76,408 m2 (75.7%) colored: 21,999 m2 (100%) From April 1, 2007 to Mar. 31, 2008: non-colored: 76,408 m2 (75.7%) colored: 21,999 m2 (100%) From April 1, 2008 to March 31, 2009 : non-colored: 33,870 m2 (28.0%) colored: 25,999 m2 (100%)

9 7. Quotas for Leather (Sheep and Goat) ► HS of applicable products: , , , ► Available amount (Apr.1 to Mar.31): ,000 m ,000 m ,000 m ,000 m ,000 m ,000 m ,000 m ,000 m ,000 m ,000 m2 ► Amount of the Quota allocated: From April 1, 2007 to March 31, 2008: none (0%) From April 1, 2007 to March 31, 2008: none (0%) From April 1, 2008 to March 31, 2009: none (0%)

10 8. Quota for Leather Shoes ► HS of applicable products: , , , , , , , , ► Available amount (Apr.1 to Mar.31): ,000 pairs ,000 pairs ,000 pairs ,000 pairs ,000 pairs ,000 pairs ► Amount of the Quota allocated: From April 1, 2007 to March 31, 2008: 109,079 pairs (30.3%) From April 1, 2007 to March 31, 2008: 109,079 pairs (30.3%) From April 1, 2008 to March 31, 2009: 137,181 pairs (31.8%)

11 For further information, please visit METI ’ s website de_control/mexicotariff/index.html or call METI at de_control/mexicotariff/index.html de_control/mexicotariff/index.html Office of Mexico-Japan Economic Partnership Agreement Tokyo, Japan Tel: