The implementation of the WCO Framework of Standards on

Cross-Border E-Commerce

Nov.2019

1. Back ground

Customs Workload and its Personnel

Note1: Figures for Year 2000 taken as a baseline (100)Note2: No. of inbound airplane passengers are based on Ministry of Justice statistics.

Customs personnel

Inbound passengers

No of exports

No of imports

Ye

ar

20

00

: In

dic

es

100

3

80

100

120

140

160

180

200

220

240

260

280

300

320

340

2000 2011 2012 2013 2014 2015 2016 2017 2018

5000

10000

15000

20000

25000

30000

35000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Growth of E-commerce in Japan

Import declarations for express cargo are increasing

（Scale:1000 times）

（Year）

Seizure of Drugs in 2018

Post is the biggest means of transport for drugs(Total 886 Cases)

Post564 cases

(64%)

Air passenger248 cases

(28%)

Methamphetamine Seizures thru post

0

10

20

30

40

50

60

0

10

20

30

40

50

60

70

80

90

100

2013 2014 2015 2016 2017 2018

Weight(KG) CASE

(Kg) (Cases)

IPR infringing items in 2018

Post22,563 cases

(87%)

Post is the biggest means of transport for IPR items(Total 26,005 Cases)

2-1 Advance Electronic data

2-2 Utilization of technology

2. Measures and efforts to implement the E-Commerce FoS

Foreign Country

Japan

More effective and efficient risk analysis

Earlier formation establishment

Place of departure, destination, marks, number, quantities, description, name and address of consignor and of consignee, and MAWB number

MAWB Information

Enhancement measures in red color with underbars

NACCS in principle

Filing Method

Customs

Take Off Arrival Hozei Area

Forwarders（Customs Brokers）

Import declaration proceduresafter carrying in Hozei Area,in principle

3 hours before arrival in principleDeadline of filing

Summary of the Enhancement of Advance Filing Rules on Air Cargo(Implementation in March 2019)

The obligation measure of electronic filing to Customs, for strengthen counter terrorism, by 3 hoursbefore arrival, in principle, on the information of cargoes carried by the international aircraft intending toentry an airport in Japan.

Cargos to be filed, and Party obliged to make the report

Cargoes carried by international aircraft, and the Captain in principle （An agent, such as airline, may report on behalf of the captain）

Deadline of filing3 hours before arrival in principle （*Exception based on the flight time (flight time)* 1 hour before arrival in case the flight time is longer than 3 hours and shorter than 5 hours* before arrival in case the flight time is shorter than 3 hours

Filing methods In principle, mandatory online filing in electronic form through NACCS

Data elements of

filing of NACCS

MＡＷＢ number, Flight number, Estimate arrival date and time, Cargo description, Number, Gross weight, Total number, Total wright, Place of departure, Destination, Name and address of consignor and consignee, Code of consignor and consignee, Telephone number of consignor and consignee, etc.

MＡＷＢ number, HAWB number, arrival airport. Estimate arrival date and time, Cargo description, Total number,Total wright, Place of departure, Destination, Name and address of consignor and consignee, Code of consignor and consignee, Telephone number of consignor and consignee, etc.

March 2019

Advance Cargo Information Registration: ADM01

Note: Any person who submits no (or false) cargo information until the deadline and enter a airport in Japan will be liable to imprisonment with labor for up to a maximum period of one yearor a fine not exceeding five hundred thousand yen.

Place of departure, destination, marks, number, quantities, description, name and address of consignor and of consignee, and HAWB/MAWB number

House Manifest Information

Risk assessment based on advance cargo information 3 hours before arrival in principle *Some exceptions for shorter routes

Advance Cargo Information (House Manifest) Registration

: HDM01

（２－１）

Screeningwith EAD

JP POST Japan Customs

ReceivesEAD

Sends EADto Japan Customs

Foreign

po

stal op

erator

Notice forinspection

UnderUPU

channel

Utilizing EAD of postal items for Customs Control

（２－１）

Pre-arrival Filling

Basic X-ray

Better risk management

Current

Future A I Automated X-ray

Pre-arrival Filling

Facilitation of E-commerce

Automated X-ray

Collaborationwith E-platform

Inspection toolsInformation

Cooperation

（２－２）

Utilization of Technologies device

Utilization of Technologies device

Targeted Outcome：Utilizing AI (Artificial Intelligence) for effective and efficient inspection on small parcels

Steps for research and development1. Collecting the X-ray images2. Learning process for recognizing characteristics of X-ray images and automatic identification3. Obtaining function for recognizing X-ray image with suspicious characteristics as inspection targets

AI Analysis on X-ray Images

（２－２）

Expectation, current challenge and future plan

Current challenge：I. Improvement of accuracy of image identificationII. Study of risk assessment functionIII. Study from the point of view of operational convenience

Future plan：2019～ Continuing to study such matters as mentioned in “Current challenges”After 2020 Deploying the X-ray equipment with AI to the frontline Customs offices

Our expectation： More customs officer will be able to focus on the inspection of cargo by more efficient risk assessment with AI

（２－２）

3. Performance Measurement－Time Release study －

Result of the 12th TRS

1. Aggregated Data on sea2. Aggregated Data on air3. Study Method

29.6

26.7

27

26.3

26.8

26

31.1

35.1

35.4

39.4

45.2

47.6

30.2

30.4

31.2

33

33.7

36.8

37.8

46

49.5

63.7

84.9

94.5

2.1

2.4

2.6

3.1

3.3

4.3

4.9

5.6

10.2

13.1

19.8

26.1

(12)2018

(11)2015

(10)2012

(9)2009

(8)2006

(7)2004

(6)2001

(5)1998

(4)1996

(3)1993

(2)1992

(1)1991

CHANGES IN THE MEANTIME REQUIRED FOR A TIME PERIOD FROM ARRIVAL TO RELEASE ON SEA CARGO

Arrival～Warehousing Warehousing～DeclarationDeclaration～Release

b. -33.7hrs

a. -18.3hrs

c. -21.1hrs

・Introduction of “Pre-arrival examination” and Customs

clearance system on sea cargo, and “Sea-NACCS”, in 1991

Policy Evaluation through TRS (1)

・Introduction of “Simplified duty rates on the cargo of small value which is under

200,000JPY of the dutiable value” in 1993.

Policy Evaluation through TRS (2)

8.2

7.4

7

5.5

1.2

2.6

3.5

3.5

6.7

7.5

8.6

8.7

3.7

5.1

6

10.1

12.8

14

21.6

27.3

37.9

34.6

42.7

41.6

0.3

0.3

0.3

0.4

0.4

0.4

0.6

0.7

1.8

1.6

1.6

2.3

(12)2018

(11)2015

(10)2012

(9)2009

(8)2006

(7)2004

(6)2001

(5)1998

(4)1996

(3)1993

(2)1992

(1)1991

CHANGES IN THE MEANTIME REQUIRED FOR A TIME PERIOD FROM ARRIVAL TO RELEASE ON AIR CARGO

Arrival～Warehousing Warehousing～Declaration

Declaration～Release

c. -8.7hrs

a. -9.2hrs

・Introduction of “Simplified duty rates on cargo of small

value” in 1993・Introduction of “Release

upon arrival” in 1996

・Introduction of “Pre-arrival examination” in1991

・24 hours operation started in 2003

b. -14.9hrs

Comparison between AEO and non-AEO

8.2

3.9

3.7

23.5

0.3

0

non-AEO

AEO

MEANTIOME REQUIRED FOR A TIME PERIOD OF THE PROCEDURES FROM ARRIVAL TO RELEASE OF AEOs

Arrival～Warehousing Warehousing～Declaration

Declaration～Permission

* Approximately 80% of the non-AEO consists of SP cargo, while that of AEO is only 1%, which is considered to cause the longer mean time for AEOs compared to non-AEO.

What is TRS for ?

TRS to monitor and evaluate Customs policies－As an indicator in “MOF Policy Evaluation”

TRS to create political/administrative incentive

TRS to be more transparent, accountability

TRS to raise awareness of new policies