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							B-5. Cutlery



5      Cutlery

1. Market Conditions in Japan
(1) Definition of Category
  This section limits itself to consideration of the following items.
           HS Numbers                                                  Commodity
          8211.10           Set of assorted knives
          8211.91 - 94      Other knives
          8213              Scissors, tailors’ shears and similar shears, and blades therefor
                            Other articles of cutlery (hair clippers, butchers’ or kitchen cleavers, choppers and mincing
          8214
                            knives, paper knives, manicure or pedicure sets and instruments)
          8215              Spoon, forks, ladies, skimmers, cake-servers, fish-knives and similar kitchen or tableware

(2) Market Conditions
  Japan is one of the world’s leading producers of cutlery, trailing only the United States and Germany. At one
time cutlery was a prototypical export-oriented industry, with some 60% of total production being exported.
But in recent years Japan has lost competitiveness in the world market, and exports have been declining. Do-
mestic market of kitchen and table cutlery tends to decrease due to a slump of consumption and drop in the
prices caused by inflow of low-priced imports. Domestic cutlery production declined from ¥58.36 billion in
1999 to ¥41.37 billion in 2003, shrinking to 70% scale in the last five years. (see Fig. 7)
  The demands of kitchen knives are at least 70% for household use and the remaining 30% are for commer-
cial use. Younger generations are using kitchen knives less and less often at home, and the growth in processed
foods and pre-cooked menus sold at department stores and supermarkets means that even housewives use
kitchen knives less frequently. Commercial users such as hotels, restaurants, beverage establishments etc. are
holding-off buying for replacement of cutleries and such move leads a market to a slump. Resistance to the
spike in cost has been strong, and even the price of steel to be used as raw material goes up, it is very difficult
to absorb the cost run-up.
  Even so, consumer concern about food safety and reliability remains very high, and consumers’ needs to en-
joy foods are being diversified. Housewives who stick to hand-made dish or men who have interest in cooking
tend to choose high quality, handy “tools” in spite of its high price. Kitchen knives, kitchen scissors and peel-
ers introduced in cooking and information TV programs are popular among young generations. Over the past
several years a number of new materials have come into use, and recently powdered steel knives have at-
tracted considerable interest because of their precision, their rust resistance and their cutting consistency. Re-
cent times have seen the emergence of kitchen knives made from antiseptic materials, as well as products in-
corporating universal design principles, such as kitchen knives with altered handle angles to account for
counter height and to reduce stress on the wrist, and nail clippers that require less pressure to use.
  The existence of brand names is never too light as many professional cooks and chefs call cutlery used by
brand names carved in products, not by product names. Specialized manufacturers are proud of the brand
names carved in their own products and provide the high functional and performance products. Nevertheless,
general consumers’ interest in cutlery brands is still low compared with ceramic, porcelain and glass tableware.
The market for expensive products, as a whole, has shrunk and it has become difficult to develop new,
long-term hit products.
 [Kitchen knives]
   There are few differences between imports and Japanese products in terms of materials or external appear-
 ance, but there are marked differences in the finer points. Most imported kitchen knives are stainless steel
 knives or forged knives. Since forged knives are forged just from steel and then heated in oil, the blades are
 sticky and have excellent elasticity. There are some 17 different kinds of kitchen knives for various purposes,
 but the most common type of imported kitchen knife is meat cleavers. Since Western foods are based on
 soups and stews, kitchen knives made in the West tend to place more emphasis on efficiency rather than pre-
 cision, and cooks often use skinners and cutters in addition to kitchen knives. To make a broad generalization,
 Japanese kitchen knives are pulling knives while Western kitchen knives are pushing knives. Most imported
 kitchen knives are double-edged except for special knives used to cut through bone. In addition, imported
 kitchen knives have comparatively thin blades, and they stand out in the areas of feel and durability rather
 than precision. In contrast, Japanese products consist mainly of traditional Japanese-style kitchen knives

Marketing Guide for ASEAN Exporters to Japan
90
                                                                                                                  B-5. Cutlery

 (used for cutting raw fish or vegetables) or chopping knives (made from stainless steel, steel or stainless steel
 sandwich materials). In addition, since Japanese kitchen knives tend to emphasize precision, they are usually
 made from comparatively hard materials and are generally single-edged.
   Currently, the most widely used one is an almighty-type kitchen knife made of stainless steel (it can cut all
 meat, fish and vegetable and it is called “Santoku” (three virtues) kitchen knife in the industry) and the size
 of mainstream products is 16 to 18 cm long. In old days, each home has its own steel kitchen knife and used
 it for a long time by whetting it at home or having it whet by store. But in recent, the light, handy and rea-
 sonable priced kitchen knives made of stainless steel, ceramic or compound material etc. are popular and
 people buy a new one in a short time once the sharpness of the knife is getting worse. Nonetheless, some
 people stick to the cooking utensils and get a set of variety kitchen knives depending on uses, and people
 who pursue a kitchen knife customized for professional use are also increasing.
 [Scissors]
   Scissors consist of two blades that perform a cut by pivoting toward one another. What differentiate Japa-
 nese from imported scissors are the final adjustments. Japanese scissors emphasize cleanness and precision
 of the cut, which is important in Japanese culture. Tailor’s scissors represent a development of a uniquely
 Japanese type of scissors that has won worldwide acclaim. The most commonly imported and highly ad-
 mired types of scissors from the West are cooking scissors and personal care scissors, items which reflect the
 rationalistic mentality of European and American people.
                   Germany turned the traditional forging techniques used to make swords and saddler to making knives and
                   scissors. Many cutlery makers have close ties to local communities across the country. Cutlery made in
                   Solingen area is especially well known for its consistently high quality. Solingen and its environs is the
       Germany     world’s leading cutlery producing area, with more than 500 cutlery makers employing some 10,000 people
                   in and near the city. Every piece of cutlery is made from a single block of forged metal. The edge between
                   the handle and the blade is thick, and the design permits the user to apply consistent pressure at the tip of
                   the knife. Genuine Solingen area products display the mark of quality.
                   The city of Sheffield in U.K. ranks with Solingen and the Japanese city of Seki in Gifu Prefecture as one of
       U.K.        the three leading cutlery-producing areas of the world. Sheffield cutlery is known for its distinctive notch-
                   ing, its durability and its overall high quality standards.
                   Main imports from the United States are razors and knives. Simple American-style knives without any ex-
       U.S.A.
                   cess functions are widely being used from beginners to professional hunters.
                   Swiss army knives are extremely popular for outdoors and leisure use, and they command a large share of
       Others      the market in that category. Cooking scissors and other kitchen cutleries are imported from Switzerland,
                   Germany and Finland.

 [Table cutlery]
   In addition to general table knives and forks, table cutlery consists of a wide variety of kinds including fish
 knives and forks, dessert knives and forks, butter knives and cheese knives etc., and even for spoon, there are
 coffee spoons, tea spoons and soup spoons, and total number of kinds of table cutlery is said to be about 70.
 Stainless steel is general material used for table cutlery. At the same time, pure silver cutlery (purity of more
 than 80%) and nickel-silver cutlery (silver-plated nickel-silver alloy made of nickel and zinc, which is some-
 times called western white, or western white silver ware or German silver in the industry) are used in
 high-class hotels and restaurants. European brand name products imported from France, the United Kingdom,
 Belgium and Germany are widely adopted.
(3) Distribution System and Business Practices in Japan
  Seki city in Gifu Prefecture and Tsubame city in Niigata Prefecture are two leading cutlery-producing areas
in Japan. About 90% of table cutlery production is concentrated in Tsubame city. The most common distribu-
tion pattern for domestically produced cutlery is from maker through wholesalers to retailers or commercial
users. There are two types of wholesalers; one is wholesalers in producing district who collects each maker’s
products within the districts and deliver them to all over the nation, and the other is wholesalers in consump-
tion district who opens the store at big cities like Tokyo and Osaka. Many consumption district wholesalers
broadly deal with not only cutlery, but also ceramic or porcelain tableware, glass tableware and lacquer ware.
Also, the wholesalers for commercial users purchase products from the consumption district wholesaler and
deliver them to hotels and restaurants.
  Imported cutlery is sold both from importers through consumption district wholesalers (primary wholesalers)
and direct to retail outlets (such as department stores, mass merchandisers and specialty stores). Many foreign
cutlery makers have their own Japanese subsidiaries to sell to wholesalers in Japan. Recently, the sales through
the Internet direct to individuals or commercial users have been increasing. On the other hand, low-priced
products imported from China and other countries are mainly sold at supermarkets (general merchandise

                                                                               Marketing Guide for ASEAN Exporters to Japan
                                                                                                                             91
B-5. Cutlery

stores) and home centers as standard articles. There are many more discount stores and ¥100 shops to carry
low-priced imported cutleries than ever before.
                                  Fig. 1    Distribution channels for imported cutlery

                                                                   Overseas manufacturers




                                       Importers               Japanese subsidiary of overseas makers



                                                                  Primary wholesalers



                                                                      Retailers
                                                Department stores, mass merchandisers, specialty stores




                                                                            Consumers



2. Trade Trends
(1) Import Trends in Japan
  Total import value of cutlery in 2004 fell by 1.3% from the year before to ¥8.87 billion, and experienced two
consecutive years of negative growth from the peak year of 2002 (¥9.59 billion). The most common type of
cutlery import is knives (single item and set of assorted articles) with ¥2.58 billion (import share 29.1%), fol-
lowed by cutlery for kitchen or tableware (single item and set of assorted articles) with ¥2.36 billion (26.6%),
scissors with ¥2.22 billion (25.0%), and other cutleries with ¥1.72 billion (19.4%). All of these product cate-
gories have seen steady growth until 2002, but all finished the year down in recent one or two years.
                                       Fig. 2      Trends in Japan’s cutlery imports
                 [Total import value]                                                [Import value by category]
 (¥ million)                                                          (¥ million)
   12,000                                                               4,000
     10,000                                                                                                  Knives
                                                                       3,000
      8,000                                                                                   Kitchen or tableware

      6,000                                                            2,000                                                      Scissors

      4,000                                                                                         Others
                                                                       1,000
      2,000
         0                                                                  0
               2000    2001     2002     2003       2004    (Year)                  2000     2001       2002     2003     2004     (Year)

                                                   Value                                                  Volume
                              2000     2001        2002      2003       2004        2000      2001         2002       2003     2004
Sets of assorted knives          106      569         515       556        329         776     5,589        2,897      2,744    1,459
Knives (single item)           2,150    2,377       2,596     2,225      2,249       1,954     2,176        2,435      2,288    2,317
Scissors                       1,804    1,984       2,326     2,062      2,217       2,304     1,997        2,488      2,333    2,691
Other cutlery                  1,295    1,276       1,695     1,783      1,718         908       932        1,418      1,577    1,484
Kitchen or tableware
                               1,584      1,660     1,920     2,023    1,986         1,312     1,371        1,829      2,239     2,207
(single item)
Sets of kitchen or tableware     183        370       535       334      369           201       492        796       457        564
           TOTAL               7,122      8,237     9,587     8,983    8,868         6,679     6,968     8,966      8,894      9,263
Units: value=¥ million, volume= tons (set of assorted knives=1,000 sets)             Source: Trade Statistics (Ministry of Finance)
(Note) Volume total does not include sets of assorted knives.




Marketing Guide for ASEAN Exporters to Japan
92
                                                                                                                                            B-5. Cutlery

                                     Fig. 3     Trends in cutlery imports by category in 2004
                                                       Value                               Volume                   Average unit price
                                                              Yearly                               Yearly
                                          Value        Share          Volume               Share                     2003          2004
                                                              change                               change
Sets of assorted knives                         329      3.7%    59.2   1,459                    *     53.2                203            226
Knives (single item)                          2,249        25.4%       101.1      2,317     25.0%       101.3              973            971
Scissors                                      2,217        25.0%       107.5      2,691     29.1%       115.4              884            824
Other cutlery                                 1,718        19.4%        96.3      1,484     16.0%        94.1          1,131         1,158
Kitchen or tableware (single item)            1,986        22.4%        98.2      2,207      6.1%        98.6              903            900
Sets of kitchen or tableware                    369        4.2%        110.4        564
                                                                                23.8%                   123.4         653  731
              TOTAL                    8,868 100.0%            98.7    10,722 100.0%          92.1         772        827
Units: tons (sets of assorted knives=1,000 sets), ¥ million, yearly change=%, average unit price=¥ per kilogram (set)
(Note) Volume total and share do not include set of assorted knives.      Source: Trade Statistics (Ministry of Finance)

(2) Principal Exporters to Japan and ASEAN’s Position
  Top-ranked China remained nearly the same as the previous year at ¥5.82 billion, leaving the rest of coun-
tries far behind one with a share of 65.6%. Next leading exporters were the Republic of Korea (¥888 million,
share 10.0%) and Germany (¥665 million, 7.5%), both saw sluggish growth. Taiwan (¥349 million, 3.9%) and
France (¥274 million, 3.1%) both have seen their imports decline to the lowest levels in the last five years. By
product category, China enjoys greater dominance in knives, scissors, and general cutlery for kitchen and table
ware, while France enjoys a commanding lead in high-class table cutlery plated with precious metal, and the
Republic of Korea holds the lead in other cutlery. High-class knives come mostly from Switzerland and Ger-
many.(see Figs. 4, 5)
                                       Fig. 4         Principal exporters of cutleries to Japan
       [Trends in import value by leading exporters]                           [Shares of cutlery imports in 2004 (value basis)]
     (¥ million)
        8,000
                                                                                                    Others     ASEAN              EU
                                                      China
        6,000                                                                                       20.4%       0.7%             13.3%

        4,000

        2,000                                   R. Korea
                                                                      Germany
               0                                                                                                           China
                    2000      2001     2002         2003     2004       (Year)                                             65.6%

                                       2000           2001           2002        2003                    2004
                                       Value          Value          Value       Value      Value      Share  Yearly change
                   China                 3,815          5,001          6,224       5,789      5,818     65.6%          100.5
                   R. Korea                   996          794          801         876         888      10.0%                   101.4
                   Germany                    588          663          703         716        665           7.5%                  92.9
                   Taiwan                     397          392          442         359        349           3.9%                  97.4
                   France                     302          293          287         277         274          3.1%                  99.1
                   Others                 1,024         1,093          1,131        966         872          9.8%                  90.3
                         TOTAL            7,122         8,237          9,587       8,983      8,868     100.0%                     98.7
                         (E U)            1,134         1,254          1,270       1,252      1,175      13.3%                     93.8
                    (ASEAN)                  90     195                 102          99         63        0.7%              63.5
                   Unit: ¥ million, yearly change=%                               Source: Trade Statistics (Ministry of Finance)

                                 Fig. 5       Principal exporters of cutleries by category in 2004
                                  Knives (single item)                                           Sets of assorted knives
                                                     Yearly Average                                                   Yearly   Average
                   Country       Value    Share                        Country                   Value     Share
                                                    change unit price                                                 change unit price
           1    China             1,470 65.4%          106.4     690 China                           302     91.7%        59.0      211
           2    Switzerland          248       11.0%          88.8      10,789 Germany                 12           3.6%           53.7         2,909
           3    Germany              235       10.4%          95.5       7,518 U.K.                     6           1.8%           62.2          687
           4    U.S.A.                 93       4.2%        132.8        5,159 Thailand                 4           1.3%         621.6           491
           5    France                 74       3.3%        117.1       20,972 Finland                  1           0.3%         136.0           428
        (ASEAN TOTAL)                     4     1.3%        621.6          491                          6           0.2%           16.8         2,362

                                                                                               Marketing Guide for ASEAN Exporters to Japan
                                                                                                                                                        93
B-5. Cutlery

                                       Scissors                                               Other cutlery
                                            Yearly Average                                                      Yearly   Average
               Country/area    Value  Share                   Country/area                Value      Share
                                            change unit price                                                   change unit price
        1    China              1,545 69.7%   110.0      633 China                           820          47.7%     91.1      783
        2    R. Korea             239       10.8%     118.8       1,782 R. Korea             414          24.1%       108.5    1,354
        3    Taiwan               212        9.5%     109.5       2,464 Germany              196          11.4%       107.2    5,429
        4    Germany              162        7.3%      86.9     10,590 U.S.A.                 77           4.5%        86.8    5,398
        5    U.S.A.                19        0.9%      58.5       5,654 Taiwan                63           3.7%        82.7    1,133
        (ASEAN TOTAL)                  6     0.3%      40.5       5,932                       10           0.6%       110.1    2,015
                      Kitchen or tableware (single item)                  Kitchen or tableware (single item)
                         (plated with precious metal)                      (not plated with precious metal)
                                               Yearly Average                                        Yearly   Average
             Country/area Value       Share                       Country      Value      Share
                                               change unit price                                    change unit price
        1    France             140 78.0%         111.5  25,156 China            1,409      78.0%       104.1      721
        2    Hong Kong                 8     4.6%      33.2       2,105 R. Korea             166           9.2%        75.3    2,706
        3    R. Korea                  8     4.4%     132.0       2,978 Germany               49           2.7%        71.5    4,318
        (ASEAN TOTAL)                  -          -       -           -                       17           0.9%        72.3    1,618
                    Kitchen or tableware (assorted sets)                Kitchen or tableware (assorted sets)
                        (plated with precious metal)                       (not plated with precious metal)
                                              Yearly Average                                         Yearly  Average
               Country     Value     Share                       Country      Value       Share
                                              change unit price                                     change unit price
        1    China              16 54.1%         289.8     987 China               253      74.5%      110.5      505
        2    France                10       33.4%      90.3     25,381 Italy                  25           7.3%       139.9    3,768
        3    U.K.                      2     5.9%      62.9     21,641 Vietnam                14           4.0%       429.3      844
      (ASEAN TOTAL)                  -      -         -          -                        21      6.1%       107.1        931
     Units: value=¥ million, yearly change=%, average unit price=¥ per kilogram (set for knives sets)
                                                                              Source: Trade Statistics (Ministry of Finance)

 Cutlery imports from ASEAN in 2004 totaled just ¥63 million, with a tiny share of 0.7%. Once in 2001,
more than ¥100 million of cutleries was exported to Japan from Vietnam, but ASEAN’s import value has been
decreasing thereafter.
                              Fig. 6       Trends in imports from ASEAN by country/category
                                                          2000        2001         2002      2003           2004      Yearly change
             Sets of assorted knives                              -           -         -             1           4           621.6
             Knives (single item)                                27          39        19            33           6             16.8
             Scissors                                            14        108         27            14           6             40.5
       ASEAN
       TOTAL Other cutlery                                        9           4         4             9          10            110.1
             Kitchen or tableware (single item)                   7           2        24            19          21           107.1
             Sets of kitchen or tableware                        32          41        29            23          17             72.3
                           TOTAL                                 90        195       102             99          63             63.5
                         Share of total                       1.3%        2.4%      1.1%          1.1%        0.7%
                Knives (single item)                             -           1         1             -              -             -
                Scissors                                        12         108        26            12              3          27.4
                Other cutlery                                    3           -         1             5              8         157.1
       Vietnam
                Kitchen or tableware (single item)               -           0         5             3            14          429.3
                Sets of kitchen or tableware                     -           -         -             1              2         364.5
                              TOTAL                             14         109        33            20            27          131.1
                Knives (single item)                            17          13         5            10              3         338.6
                Scissors                                         3           -         0             -              -             -
                Other cutlery                                    0           -         -             -              -             -
      Indonesia
                Kitchen or tableware (single item)               4           -        18            16              5          29.3
                Sets of kitchen or tableware                    11          20        22            16              8          52.8
                              TOTAL                             35          33        45            42            17           39.2
                Sets of assorted knives                          -           -         -             1              4         621.6
                Knives (single item)                             3          20         6             4              1          38.4
                Scissors                                         -           -         -             2              2         103.2
       Thailand Other cutlery                                    1           0         1             2              -             -
                Kitchen or tableware (single item)               2           1         1             -              3             -
                Sets of kitchen or tableware                    13          17         7             6              6          93.2
                              TOTAL                             19          38        15            14            16          112.6
                                                                                                                  (To be continued)
Marketing Guide for ASEAN Exporters to Japan
94
                                                                                                                         B-5. Cutlery

                                                       2000         2001         2002      2003       2004       Yearly change
                         Singapore                            6            5         3         12            2              15.3
                          Malaysia                           12            7         6         10            2              17.3
                         Philippines                          3            3         0          1            0              63.2
                          Myanmar                             -            -          -          -           -                 -
                            Laos                              -            -          -          -           -                 -
                         Cambodia                             -            -          -          -           -                 -
                           Brunei                             -            -          -          -           -                 -
      Unit: ¥ million, yearly change=%                                            Source: Trade Statistics (Ministry of Finance)

(3) Imports’ Market Share in Japan
  Unfortunately, it is difficult to measure accurately how large a share imports collectively have of the Japa-
nese market. In point of reference, Fig. 7 presents trends in domestic production of cutlery. Domestic produc-
tion (not including cutlery for hairdressing) declined from ¥58.36 billion to ¥41.37 billion in recent five years.
Especially, table cutlery, which was once the main product, fell significantly, almost to half. Imports of
low-priced cutlery should continue rising in the future, because Japanese manufacturers will be increasing
their own offshore production and consigning production to China and other countries.
                                  Fig. 7 Trends in domestic production of cutlery
                                         1999      2000           2001         2002      2003      Share     Vs. 2002 Vs. 1999
   Scissors                              17,816     16,752        15,581       15,550     14,653     35.4%        94.2       82.2
   Kitchen knives                        15,826     14,844        12,405       11,411     11,205     27.1%        98.2       70.8
   Knives                                 6,808      6,133         5,479        5,294      5,352     12.9%       101.1       78.6
   Table knives, forks & spoons          17,909     14,665        13,604       11,766     10,160     24.6%        86.4       56.7
               TOTAL                     58,359     52,394        47,069       44,021     41,370    100.0%        94.0       70.9
    <Ref.> Cutlery for hairdressing      19,659     20,599    21,425    18,780     18,976               101.0     96.5
   Unit: ¥ million, %                             Source: Census of Manufactures (for those with 4 or more employees)

3. Key Considerations related to Exporting to Japan
(1) Regulations and Procedural Requirements at the Time of Importation in Japan
  The importation of cutleries is subject to provisions of the Food Sanitation Law and the Firearms and
Swords Possessive Control Law. Some cutleries containing some species (such as coral) at least in part are re-
stricted and in some cases prohibited under terms of the Washington Convention (Convention on International
Trade in Endangered Species of Wild Fauna and Flora, so-called CITES). For more information on the specific
content and applicability of these classifications, please contact the Trade Licensing Division, Trade and Con-
trol Department, Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry.
  The Customs Tariff Law prohibits the importation of fake name brand products and knock-off copies, and
such items are subject to confiscation or destruction at customs based on provisions of the Customs Law. Im-
porters can even be subject to criminal penalties, including fines and imprisonment. April 2003 revisions of
the Customs Tariff Law added patents, design rights and utility model rights to the import suspension system.
From April 2004, information about manufacturers, exporters and importers of fake name brand products shall
be disclosed to rights holders so they can take legal action or otherwise pursue the importers, etc. It has been
decided that, starting from March 2006, the items which are subject to the Unfair Competition Prevention Law
such as misleading products, fake name brand products and knock-off copies will be checked at the customs
even if those products are not registered for trademarks, design rights etc., in order to strengthen the counter-
measures against copy products.
 1) Food Sanitation Law
   Kitchen knives and table knives are subject to the following prohibitions under terms of the Food Sanita-
 tion Law. Importers are required to confirm that their products are compliant with these standards, and sub-
 mit the completed “Notification Form for Importation of Foods, etc.” to the Quarantine Station at the port of
 entry. A determination is made based on the document examination whether or not an inspection at the
 bonded area is required.
      a) To metal parts those come in direct contact with food
          1. The structure of the knife must not permit copper, lead or alloys of these substances to shear off
             from the knife.
          2. The plating must not have a lead content of 5% or greater.
          3. Knives must not be manufactured or repaired with instruments with 10% or higher lead content or
             5% or higher antimony content.
                                                                                      Marketing Guide for ASEAN Exporters to Japan
                                                                                                                                    95
B-5. Cutlery

          4. Solder used to manufacture or repair knives must not have a lead content of 20% or greater.
          5. All copper or copper alloy knives must have the portion of the knife that comes in contact with
             food covered with tin plating, silver plating or other plating designed to keep the food safe.
             However, substances that have a distinctive shine and are not rusted need not meet this require-
             ment.
       b) Plastic portion of knives that come into direct contact with food must be tested for lead and cad-
          mium content.
                      Fig. 8    Import inspection procedures under the Food Sanitation Law
                                                        Advance consultation service
                            Advance information acquisition (regarding production methods, content of ingredients, etc.)
                               Advance inspection (by the competent government agency of the exporting country,
                                or the official laboratory registered with the Minister of Health, Labour and Welfare)



                                                   Submission to the Quarantine Station
                                  (“Notification Form for Importation of Foods, etc.” and other related documents)


                                                              Examination of documents



                                  Cargo required inspection                          Cargo not required inspection



                                 Failure              Pass                        Certificate of notification processing, or
                                                                                     certificate of passing inspection


                                  Reshipment, destruction,
                                conversion to other purposes                              Customs declaration



   Prior to importing, the importer may take a sample of forthcoming imports to laboratories registered with
 the Minister of Health, Labour and Welfare or the competent government agency of the exporting countries.
 Those test results may be substituted for the corresponding inspection at the port of entry, which expedites
 the quarantine clearance process.
 2) Firearms and Swords Possessive Control Law
   There are no special regulations on importation of knives or swords covered by the provisions of the Fire-
 arms and Swords Possessive Control Law, but possession in Japan is not possible without approval of the
 Prefectural Public Safety Commission or registration with the Prefectural Education Board, so it is necessary
 to apply for approval or registration in advance. When recognized as a knife or sword, in principle it is nec-
 essary to obtain approval, while when deemed a knife or sword worthy as an object of art, registration is re-
 quired or else possession in Japan is not allowed. Article 22 prohibits carrying any cutlery that meets certain
 criteria (blade length of over 6 cm), even if it is not a knife. However, since the determination is difficult,
 advice should be sought from the nearest police agency office.
      Note “Swords” in this Law shall mean a sword, a blade, a spear and a halbert as well as a dagger with a blade 15 or
           more centimeters long and a knife having a mechanism to automatically open a blade at 45 or more degree (ex-
           cluding a knife with a blade 5.5 or less centimeters long and without having a mechanism to have an opened blade
           fixed in a straight line with a case, and whose edge of a blade is straight and whose point of a back is tinged, with
           round and a line connecting a point of 1 cm by straight line from the edged point on the back of a blade with the
           edged point is intercrossed by an angle of 60 or more degrees against the line of the edge of a blade).
   For application for approval, it is necessary to submit an application for approval together with documents
 set down in a Prime Minister’s Office Order to the Prefectural Public Safety Commission having jurisdiction
 over the domicile or place of business of the applicant. If a permit is issued after examination, a sword own-
 ership permit is issued. For application for registration, it is necessary to submit an application to the Prefec-
 tural Education Board having jurisdiction over the domicile of the applicant. If registration as a knife or
 sword worthy of an object of art is approved, a registration certificate is issued.

(2) Regulations and Procedural Requirements at the Time of Sale
  At the time of sale, cutleries sometimes are subject to provisions of the Firearms and Swords Possessive
Control Law. Products that infringe intellectual property rights are regulated by the various intellectual prop-
erty laws (Trademark Law, Patent Law, Unfair Competition Prevention Law, etc.). Prospective importers must
be aware of these considerations, as rights holders may initiate legal action.

Marketing Guide for ASEAN Exporters to Japan
96
                                                                                                                B-5. Cutlery

 1) Firearms and Swords Possessive Control Law
   The sale of knives and swords defined in Article 2, Section 2 of the Firearms and Swords Possessive Con-
 trol Law to a person not obtaining a sword ownership permit are restricted.
(3) Labeling Regulations at the Time of Sale in Japan
 1) Legally Required Labeling
   There is no legally required labeling for cutlery.
 2) Voluntary Labeling based on Provisions of Law
   There is no voluntary labeling based on provisions of law for cutlery.
 3) Voluntary Industry Labeling
   There is no voluntary industry labeling for cutlery.
(4) Key Considerations for entering the Japanese Market
  Demands for kitchen knife and table cutlery consist primarily of commercial use, wedding gift and house-
hold user replacement. Industry observers believe that efforts to promote knife replacements, to develop new
products and explore the gift market in earnest could expand the market. Industry observers also say that
kitchen knife makers need to broaden their target market by making knives smaller and more colorful. There
are still rooms for market entry in the fields of kitchen scissors and other convenience items with features not
widely found in Japanese products, as well as for products with added value features such as more elegant
handles and other personal accessory type elements.
  Some importers simply replace any defective merchandise. They also perform any maintenance steps that
may be required, including polishing or parts replacement. In Japan, the Product Liability (PL) Law has been
enacted in order to stipulate the liability for compensation of manufacturers etc. and to protect the victim in
case that it is verified that the damages to human life, body or properties have been caused due to defects in
manufactured goods. For the imported products, since the importers shall be liable to compensation for dam-
ages, the importers need to be careful about the handling manuals and warning indications, not to mention the
quality control.
(5) Considerations for Related Products
  Cutters, eyeleteers and sculptors’ chisels for handicraft are all subject to provisions of the Firearms and
Swords Possessive Control Law. Mechanical cutting tools used in construction or home repair work, including
saws, planes, chisels and drills, are not subject to any legal restrictions. Electric power tools are subject to pro-
visions of the Electrical Appliance and Material Safety Law.
  There are no regulations on importation of razors and razor blades. But the Customs Tariff Law prohibits the
importation of fake name brand products and knock-off copies, and such items are subject to confiscation or
destruction at customs based on provisions of the Customs Law. Importers can even be subject to criminal
penalties, including fines and imprisonment.
(6) Regulatory Agency Contact
  • Food Sanitation Law
     Office of Imported Food Safety, Inspection and Safety Division, Department of Food Safety,
     Pharmaceutical and Food Safety Bureau, Ministry of Health, Labour and Welfare
           TEL: 03-5253-1111                     FAX: 03-3503-7964 (Direct)               http://www.mhlw.go.jp
 • Firearms and Swords Possessive Control Law
     Firearms Control Division, Community Safety Bureau, National Police Agency
           TEL: 03-3581-0141                                                             http://www.npa.go.jp
 • Foreign Exchange and Foreign Trade Law
     Trade Licensing Division, Trade Control Department, Trade and Economic Cooperation Bureau,
     Ministry of Economy, Trade and Industry
          TEL: 03-3501-1511                                                            http://www.meti.go.jp




                                                                            Marketing Guide for ASEAN Exporters to Japan
                                                                                                                         97
B-5. Cutlery

4. Tariff Duties and Consumption Tax in Japan
(1) Tariff Duties
  Fig. 9 presents tariff duties on cutleries. In case of confirming the tariff classification or applicable tariff rate
in advance, it is convenient to use the “advance counseling program.” By making an inquiry to the customs
orally, or through document or e-mail, the customs will reply to such inquiry.
 Contact: Customs website                                          http://www.customs.go.jp
 [Preferential Tariff System]
      In order to apply for preferential tariff rates on cutleries imported from preferential treatment countries, the
     importer should submit a certificate of preferential country of origin (Form A) issued by the customs or
     other issuing agency in the exporting country (not required if the total taxable value of the shipment is no
     greater than ¥200,000). For more details, please contact the Customs and Tariff Bureau, Ministry of Fi-
     nance. Application of tariff rates on ASEAN countries is as follows.
                             Applicable Rates                               ASEAN Countries
                         LDC Preferential Rate            Myanmar, Cambodia, Laos
                         Preferential Rate                Thailand, Indonesia, Malaysia, Philippines, Vietnam
                         JSEPA Rate                       Singapore
                         WTO Rate                         Brunei

                                                 Fig. 9      Tariff duties on cutleries
                                                                                                           Rate of Duty
       HS No.                                  Description                                                     Prefer- Tem-
                                                                                           General     WTO                    JSEPA
                                                                                                                ential porary
      8211       Knives with cutting blades, and blades therefore                                                               A
         10       1. Sets of assorted articles                                                4.4%     3.7%     Free
                  2. Other
         91        1) Table knives having fixed blades                                        4.4%       3.7%       Free
         92        2) Other knives having fixed blades                                        4.4%       3.7%       Free
         93        3) Knives having other than fixed blades                                   4.4%       3.7%       Free
         94        4) Blades                                                                  3.7%       3.1%       Free
         95        5) Handles of base metal                                                   4.4%       3.7%       Free
      8213       Scissors, tailors’ shears and similar shears, and blades therefor            4.4%       3.7%       Free            A
      8214       Other articles of cutlery, manicure or pedicure sets and instruments                                               A
         10       1. Paper knives, letter openers, erasing knives, pencil sharpeners 4.4%                3.7%       Free
                     and blades therefor
         20       2. Manicure or pedicure sets and instruments                                4.6%       3.9%       Free
         90       3. Other                                                                    4.4%       3.7%       Free
      8215       Spoons, forks, ladies, skimmers, cake-servers, fish-knives, but-                                                   A
                 ter-knives, sugar tongs and similar kitchen or tableware
         10       1. Sets of assorted articles containing at least one article plated         4.6%       3.9%       Free
                     with precious metal
         20       2. Other sets of assorted articles                                          4.6%       3.9%       Free
                  3. Other
         91        1) Plated with precious metal                                              4.6% (4.6%)           Free
         99        2) Other                                                                   4.6%       3.9%       Free
       Note 1: “A” in JSEPA rate means that based on the Japan-Singapore Economic Partnership Agreement (JSEPA), articles origi-
               nated in Singapore were approved as duty free from the effective date of Agreement (November 30, 2002).
       Note 2: Normally the order of precedence for application of tariff rates is JSEPA, Preferential, WTO, Temporary, and General, in
               that order. However, Preferential rates are only eligible when conditions stipulated by law or regulations are met. Also,
               WTO rates apply when those rates are lower than Temporary or General rates. Refer to “Customs Tariff Schedules of
               Japan” (published by Japan Tariff Association) etc. for more complete interpretation of tariff table.

(2) Consumption Tax
  (CIF + Tariff Duty) x 5%

5. Related Industry Organizations
     • Tokyo Hamono Kogyo Kyodokumiai (Leading manufacturers’ organization of cutlery)
               TEL: 03-3841-3873



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