Nagashima Ohno & Tsunematsu | View firm profile
Introduction
Nagashima provides a wide range of legal services concerning trade transactions, including security export control, economic sanctions compliance, and related matters for Japan, the United States, China, Europe, and other jurisdictions. In addition to inquiries in relation to the Foreign Exchange and Foreign Trade Act (the “FEFTA”), the United States Export Administration Regulations, economic sanctions lists in Japan, the United States, Europe, and the United Kingdom, as well as China’s Export Control Law, and Anti-Foreign Sanctions Law, we have recently seen a marked increase in inquiries regarding customs matters, including import and export clearance procedures, the treatment of price changes after export authorizations, the Authorized Economic Operator (“AEO”) program, and in particular, errors in cases involving misstatements on invoices. In the past, Japanese companies typically addressed these matters through direct consultation with customs authorities and rarely sought advice from law firms. However, more recently, enforcement actions and regulatory scrutiny have intensified not only under the FEFTA, but also under other import- and export-related laws, including the Customs Act and the Export and Import Transactions Act. Accordingly, particularly for cases involving errors, an increasing number of Japanese companies wish to avoid enforcement measures that may be disproportionately severe relative to the nature and circumstances of the case. Therefore, we are seeing more companies seek ongoing advice from law firms serving as their advisors to safeguard their interests and to handle these matters more cautiously than in the past.
In this newsletter, we will discuss typical customs-related errors cases in respect of which we are frequently consulted, with a particular focus on the legal risks to exporters when there are errors in the price or country of origin on invoices at the time of cargo export.
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[Author]
Oki Osawa, Partner