FTA (Free Trade Agreement)
An agreement between countries to cut or remove tariffs
Definition of an FTA
A Free Trade Agreement (FTA) is a pact between countries to reduce or remove tariffs and trade barriers. Between member countries, duties on specific goods are cut or eliminated, which directly affects export price competitiveness.
Why it matters for exporters
Qualifying for FTA preferential tariffs lets you export the same product at a lower duty, giving a price edge over competitors from non-member countries. It is not automatic, however — it requires meeting and proving origin criteria.
Rules of origin and proof
To claim FTA benefits, a product must meet the agreement's rules of origin (regional value content, tariff-heading change, etc.) and be evidenced by a certificate of origin. Rules differ by agreement and item, so verify by HS code in advance.
Relationship with EPAs
An EPA (Economic Partnership Agreement) adds broader cooperation — investment, services, movement of people — on top of tariff cuts. Japan has many EPAs plus regional pacts like RCEP and CPTPP, so in practice FTAs and EPAs are reviewed together.
What to confirm when using one
Confirm whether an FTA/EPA exists between Japan and the target market, the preferential rate for your item, the rules of origin and proof procedure, and how to apply. Eligibility ties directly into your pricing.
Terms to know alongside
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