Set appropriate tariff rates and improve the customs system, taking into account domestic and international economic conditions.

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Policy Goal 5-1: Set appropriate tariff rates and improve the customs system, taking into account domestic and international economic conditions. General outline of the goal When setting tariff rates and improving the tariff system, it is necessary to ensure that policy is tied to the sound development of both the national and global economy, comprehensively considering such matters as the contribution made to international economic and trade development, the actual status of domestic industry, and the impact on consumers, while bearing in mind the function of tariffs in protection of domestic industry, development, the actual situation faced by domestic industry, and the impact on consumers, while bearing in mind the function of tariffs in protecting domestic industry. (Measures for achieving the goal) Policy 5-1-1: Implement appropriate tariff reforms, taking into account the current situation faced by producers, consumers, and users, as well as the results of policy evaluations Policy 5-1-2: Appropriately operate the special tariff measure Results of Evaluation of Policy Goal 5-1 of Policy Goal S: Goal achieved As both measures were rated "s: Goal achieved," s in this area were rated "S: Goal achieved."

Measures Policy 5-1-1: Implement appropriate tariff reforms, taking into account the current situation faced by producers, consumers, and users, as well as the results of policy evaluations Policy 5-1-1-B-1: Implement appropriate tariff reforms Goals The MOF will set appropriate tariff rates and improve the customs system, taking into account domestic and international economic conditions. The MOF implemented appropriate reforms of tariffs in the 2016 tariff reforms. (qualitative ) When setting tariff rates and improving the tariff system, it is necessary to ensure that policy is tied to the sound development of both the national and global economy, comprehensively considering such matters as the contribution made to international economic and trade development, the actual situation faced by domestic industry, and the impact on consumers, while bearing in mind the function of tariffs in protecting domestic industry. Accordingly, the MOF has set the implementation of appropriate tariff reforms as the target. ( the level of rating) In the 2016 tariff reform, the MOF implemented appropriate tariff reforms that took into account domestic and international economic conditions. These reforms included the following: - Extended the application period of the temporary tariff rates, which was to expire on March 31, 2016; - Added goods infringing trade secrets as prescribed in the Unfair Competition Prevention Law to the scope of "articles prohibited from import and export" under the Customs Law; - While maintaining the principle that import/export declaration shall be made to the customs office where the goods are stored, newly allowed importers, exporters and customs brokers out of Authorized Economic Operators to make import/export declaration at any customs office; and - Abolished the provisions to restrict business of a customs broker to areas under jurisdiction of the relevant customs office, and reviewed the overall system for customs brokers in order to respond to recent changes in the environment relating to customs clearance procedures. Accordingly, the level of was rated "." of Measures s: Goal achieved (Implement appropriate tariff reforms) When relevant ministries and agencies requested tariff reforms, they were required to detail the policy objectives; the necessity, appropriateness, and effects of the requested measures; and the results of policy evaluation. In addition, when scrutinizing the requests for tariff reforms that they had submitted, the MOF conducted interviews with these ministries and agencies to ascertain the situation in the industries that they oversee and the impact of individual requests on the national economy as a whole. Starting in October 2015, the Council on Customs, Tariff, Foreign Exchange and other Transactions met five times to examine these requests and submitted a report on its findings concerning 2016 reforms of tariff rates and the tariff system on December 16, 2015. The key elements of the draft tariff reforms prepared on the basis of this report were incorporated into the 2016 Tax Reform Outline. The MOF drafted the Bill to Partially Amend the Customs Tariff Law based on these developments and submitted the bill on February 9, 2016, to the Diet. The bill was enacted on March 29, and promulgated on March 31, with most provisions entering into force on April 1 the same year. Thus, the measurement indicator was rated "," so this measure was rated "s: Goal achieved."

Measures Policy 5-1-2: Appropriately operate the special tariff measure of Measures s: Goal achieved (Appropriately operate the special tariff measure) In accordance with the WTO agreements and relevant domestic legislation, the MOF has striven to ensure the transparent, fair, and appropriate operation of the special tariff measure, working in close partnership with other relevant ministries in imposition of anti-dumping duties on Toluenediisocyanate originating in the People's Republic of China (excluding the regions of Hong Kong and Macao) and anti-dumping duty investigation on Potassium hydroxide originating in the Republic of Korea and the People's Republic of China (excluding the regions of Hong Kong and Macao). Thus, as the measurement indicator was rated "," the level of regarding the appropriate operation of the special tariff measure was rated "s: Goal achieved." Departments responsible Customs and Tariff Bureau (Tariff Policy and Legal Division) Timing of policy evaluation June 2016

Policy Goal 5-2: Maintain and strengthen the multilateral trading system, and promote economic partnerships and trade facilitation in customs-related fields (Partially revised in November 2015) General outline of the goal Promoting free trade is a key pillar of Japan's external trade policy and the basic stance of the government as a whole is that strengthening free-trade frameworks and integrating the vitality of other countries are essential to Japan's own growth, as a means of achieving powerful economic growth. Moreover, promoting economic partnerships, which was positioned as an important element in the growth strategy set out in the Japan Revitalization Strategy (approved by the Cabinet on June 14, 2013), remains to be one of the major policies to be promoted even after the revision to said strategy. In particular, the TPP (Trans-Pacific Partnership) was highlighted in the policy speech by the Prime Minister to the 189th Session of the Diet (on February 12, 2015) and trade facilitation in customs-related fields will support the overseas expansion of Japanese companies. As such, this target has been positioned as a major target. The MOF will continue to maintain and strengthen the Multilateral Trading system with the centrality of the WTO (World Trade Organization), and will also work with relevant ministries and agencies to strategically promote economic partnerships with such regions as the Asia-Pacific region, East Asia, and Europe. Additionally, with the aim of strengthening the growth power of the Japanese economy by enhancing Japanese companies' international competitiveness through the improvement of the trade and business environment, the MOF will proactively promote facilitation of trade of respective countries in collaboration with the World Customs Organization (WCO), Japan International Cooperation Agency (JICA) and Multilateral Development Banks (MDBs), thereby seeking concrete s. Furthermore, the MOF is currently undertaking initiatives within the context of cooperative frameworks with international organizations such as the WCO, as well as regional cooperative frameworks such as APEC (Asia- Pacific Economic Cooperation), and frameworks focused on EPAs (Economic Partnership Agreements) and cooperation with customs authorities in other countries. These include initiatives aimed at promoting international harmonization and streamlining of customs procedures, and initiatives focused on ensuring the security of international trade in customs-related fields. Pursuing the international standardization of customs procedures through these and other initiatives should help to facilitate international trade, thereby assisting in efforts to improve the user-friendliness of customs procedures and thwart the smuggling of socially undesirable items. In light of the importance of such initiatives to Japan as a major trading nation, the MOF will actively promote the international harmonization of procedures in customs-related fields within the aforementioned frameworks of international organizations, regional cooperation frameworks, and EPAs. (Measures for achieving the goal) Policy 5-2-1: Promote the maintenance and strengthening of multifaceted free trade and economic partnerships Policy 5-2-2: Promote smoother trade in customs-related fields Results of Evaluation of Policy Goal 5-2 of Policy Goal S: Goal achieved As all of the measures were rated "s: Goal achieved," this policy goal was rated "S: Goal achieved."

Measures (qualitative ) Policy 5-2-1: Maintain and strengthen the multilateral trading system and promote economic partnerships [Key indicator] Policy 5-2-1-B-1: Maintain and strengthen the multilateral trading system and promote economic partnerships Goals In order to secure the national interests of Japan in the WTO and EPA negotiations, the MOF will engage in negotiations concerning tariffs on the goods and items under its responsibility, and will also contribute to negotiations relating to laws and regulations concerning tariffs and other systems that fall under its responsibility. The MOF contributed to the progress in the WTO and EPA negotiations, leading to the acceptance of the Trade Facilitation Agreement, the agreement in principle on the TPP negotiations and the signing of the TPP Agreement. The contribution made by the MOF has been set as the target because maintaining and strengthening multifaceted free trade systems and promoting economic partnerships can only be accomplished through the endeavors of the government as a whole. ( the level of rating) With regard to maintaining and strengthening the Multilateral Trading System, the MOF contributed to the acceptance of the Trade Facilitation Agreement in the domestic process, which was adopted at the WTO. In terms of promoting economic partnerships, the MOF sought to coordinate the interests and further strengthen economic relationships between Japan and partner countries upon reaching the agreement in principle on the TPP negotiations in October 2015 and signing the TPP Agreement in February 2016. Accordingly, the level of was rated "." of Measures s: Goal achieved With regard to maintaining and strengthening the Multilateral Trading System, the MOF contributed to the acceptance of the Trade Facilitation Agreement in the domestic process, which was adopted at the WTO. In terms of promoting economic partnerships, with the whole government engaged in multiple concurrent EPA negotiations, such as the TPP (Trans-Pacific Partnership), RCEP (Regional Comprehensive Economic Partnership for East Asia), and the Japan-EU EPA, the MOF made its contribution in negotiations concerning tariffs on items under its jurisdiction and in discussions concerning tariff-related systems and other systems that it oversees. As a result of such efforts, the agreement in principle on the TPP negotiations was reached in October 2015 and the TPP Agreement was signed in February 2016. Thus, as the measurement indicator was rated "," this measure was rated "s: Goal achieved."

Measures Policy 5-2-2: Promoting trade facilitation in customs-related fields ) Policy 5-2-2-A-1: Number of Customs Mutual Assistance Agreements, etc. concluded (Unit: Countries and Regions) figure 2011 from the previous year 2012 from the previous year 2013 from the previous year 22 24 26 2014 from the previous year 2015 from the previous year 28 30 This target has been set because increasing the number of Customs Mutual Assistance Agreements, etc. concluded facilitates more effective enforcement at the border in relation to illicit drugs and the like. ( the level of rating) As the target was exceeded, the level of was rated "." Policy 5-2-2-B-1: Promoting trade facilitation in customs-related fields Goals The MOF will contribute to the promotion of trade facilitation via technical cooperation in customs-related fields, the initiatives at the WCO and other international organizations, and customsrelated cooperation and the conclusion of Customs Mutual Assistance Agreements within the context of EPAs. (qualitative ) In the course of its technical cooperation in customs-related fields, the MOF hosted 325 people from 62 countries and dispatched 184 people to 27 countries. In the area of support for the introduction of customs clearance systems, the nationwide roll-out of Vietnam's customs clearance system was completed at the end of June 2014 and the MOF is now providing support for ensuring its effective utilization. Furthermore, the MOF continues to provide support in this area in Myanmar as well. At the WCO, the MOF attended both working group meetings concerning the WTO Trade Facilitation Agreement, contributing to discussions by sharing Japan's experiences. Additionally, the MOF held the Customs and Tariff Bureau Director-General-level meeting among Japan, China and South Korea for the first time in almost four years to further strengthen mutual cooperation in this field, incorporated provisions relating to the customs-related fields in the newly signed TPP Agreement, and concluded a Customs Mutual Assistance Agreement with Spain. In this manner, the MOF contributed to promoting trade facilitation.

Contributing to technical assistance and these other initiatives by Japan will help to promote trade facilitation in customs-related fields. ( the level of rating) The MOF steadily implemented the various initiatives specified in the targets, with the aim of promoting trade facilitation in customs-related fields. Therefore, the level of was rated "." of Measures s: Goal achieved The MOF's s in regard to the measurement indicator "Number of Customs Mutual Assistance Agreements, etc. concluded" exceeded those during the previous fiscal year. Taking into account the support needs of other countries, with a primary focus on ASEAN members, the MOF provided technical assistance in modernizing customs administration. In particular, it offered support for the introduction of customs clearance systems based on Japan's NACCS system, completing the nationwide roll-out of Vietnam's system at the end of June 2014, and is now providing support for ensuring its effective utilization. The MOF is also continuing to provide support to Myanmar in this area, completing the building of the system by October 2015 and aiming to start operation within 2016. Through such efforts, the MOF has made a substantial contribution to trade facilitation in Asia. In addition, it contributed to promoting trade facilitation within frameworks at the WCO and other international organizations and within frameworks of regional cooperation such as through the Customs and Tariff Bureau Director- General-level meeting among Japan, China and South Korea. Thus, as all measurement were rated "," this measure was rated "s: Goal achieved." Departments responsible Customs and Tariff Bureau (International Negotiations Division, International Cooperation Division, Office of Economic Partnership) Timing of policy evaluation June 2016

Policy Goal 5-3: Ensure proper imposition and collection of customs duties, prevent smuggling of illegal drugs, firearms, and other anti-social contraband, and improve convenience in customs procedures (Partially revised in November 2015) General outline of the goal Amid the rapid progression of economic globalization and given the increasingly networked nature of society, it is vital for the government to take the initiative and respond actively to the demands of changing times as it seeks to maintain order in trade and achieve sound development. Efforts to promote trade facilitation are required in order to tap into rapidly-growing demand in Asia and use this to revitalize the Japanese economy. At the same time, the increased scale and complexity of global logistics is giving rise to more sophisticated smuggling techniques. Accordingly, more stringent enforcement at the border is required in relation to the smuggling (both into and out of Japan) of items that threaten the safety and security of society, including illicit drugs, guns and other items linked to terrorism, and items that infringe intellectual property rights. To address these needs, in its management of customs administration, the MOF will aim to achieve a higher level of compatibility between efforts to promote trade facilitation and enforcement at the border, by such means as improving customs procedures and using more advanced risk management techniques. (Measures for achieving the goal) Policy 5-3-1: Ensure proper imposition and collection of customs duties, etc. Policy 5-3-2: Prevent smuggling of socially undesirable items Policy 5-3-3: Improve the user-friendliness of customs procedures Policy 5-3-4: Enhance the functions of customs procedure systems and improve their user-friendliness Policy 5-3-5: Provide information to facilitate effective customs administration Results of Evaluation of Policy Goal 5-3 of Policy Goal A: Considerable progress toward accomplishment As some measures were rated "a: Considerable progress toward accomplishment" and others were rated "s: Goal achieved," this goal was rated "A: Considerable progress toward accomplishment."

Measures Policy 5-3-1: Ensure proper imposition and collection of customs duties, etc. [Key indicator] Policy5-3-1-A-1: Number of illegal acts discovered through examinations and inspections 2011 (2007-2011 2012 (2008-2012 203 (2009-2013 2014 (201-2014 2015 (2011-2015 Figures in brackets are averages for the preceding five years (Incidents) above the average for the last 5 years (67,612) above the average for the last 5 years (80,623) above the average for the last 5 years (88,221) above the average for the last 5 years (100,560) above the average for the last 5 years (104,660) figure 80,623 88,221 100,560 104,660 105,267 In order to ensure proper imposition and collection of customs duties, etc., it is necessary to rectify improper declarations, such as those in which there are errors in the declaration of the quantity or the price at the time of making the import (tax payment) declaration. With this aim, achieving an increase above the average for the last 5 years has been set as the target. ( the level of rating) In an increased number of cases, importers and exporters or customs brokers voluntarily corrected errors in import/export declarations without being pointed out by customs officials. Also, Japan Customs strove to discover illegal acts through examinations and inspections. As a result, the target was exceeded, therefore the level of was rated "." ) Policy 5-3-1-A-2: Operating status of the advance ruling system (proportion of responses provided within a specified period) (Unit: %, days) Written response (%) figure 2011 99.9 99.8 2012 2013 2014 99.9 99.9 99.9 99.9 99.9 99.9 2015 99.9 99.9 Average handling time (days) figure 15.0 14.0 14.0 14.0 14.0 13.2 13.2 13.0 13.3 13.1 Verbal response figure 99.8 99.9 99.9 99.9 99.6 99.7 99.8 99.9 99.9 99.9

There is a system, the advance ruling system, that allows importers, etc. to submit an inquiry to and receive a reply from Japan Customs before importing a cargo, concerning the tariff schedule category etc. applicable to the cargo that they intend to import. With the aim of further promoting the utilization of the advance ruling system by importers, etc. and maintaining a high-level operation by Japan Customs, high targets were set. (Note) The proportion of responses in each case refers to the number of responses to inquiries about item classifications under the advanced ruling system that were provided within a certain period from the time of receipt of said inquiry (30 days in the case of written responses (excluding cases in which it is not possible to provide a response within 30 days due to circumstances beyond the control of Japan Customs, such as delays in the provision of the data required for a response)and the same day in the case of verbal responses (excluding cases in which it is not possible to provide a response the same day due to circumstances beyond the control of Japan Customs, such as failure by the person making the inquiry to respond when Japan Customs telephones them to provide the response or ask a question)). The average handling time shows the average number of days that it takes to process a written response. ( the level of rating) Responses were provided promptly except for difficult cases, and the targets were met or exceeded for each item, and therefore the level of was rated "" for all items. of Measures s: Goal achieved In addition to meeting the target for the major measurement indicator "Number of illegal acts discovered through examinations and inspections" by discovering a higher number of illegal acts in this way than was achieved over the preceding five years, the MOF exceeded the target for the measurement indicator "Operating status of the advance ruling system" by ensuring that both written and verbal responses were provided promptly. Thus, as all measurement were rated "," these measures were rated "s: Goal achieved." Measures Policy 5-3-2: Prevent smuggling of socially undesirable items ) Policy 5-3-2-A-1: Proportion of the total volume of illicit drugs seized at the border (Unit: %) (Note) Proportion of the total volume of all domestic seizures in which Japan Customs are involved; These are mean values for the last 5 years, including the year in question. (Notes 1 and 2) Illicit drugs Of which, stimulants figure figure 2011 (2007-2011 2012 (2008-2012 74.0 62.9 203 (2009-2013 Maintain 97.7 96.5 97.9 2014 (201-2014 2015 (2011-2015 71.3 75.4 N.A 99.8 N.A

It is difficult to set a specific numerical target, but strict enforcement at the border is required on anti-social and other items whose import and export is prohibited for the purpose of maintaining order in international trade. Therefore, the target was set as "increase." (Note 1) The proportion of all illicit drugs (stimulants, cannabis, opium, and narcotics (heroin and cocaine)) seized within Japan (based on statistics from the Ministry of Health, Labour and Welfare) within the last five years (including the year in question) that were seized by Japan Customs (quantity seized as a result of detection by Japan Customs itself or by the police or other agencies with the involvement of Japan Customs). (Note 2) The average for the last five years is used because there are substantial fluctuations due to external factors, such as performance by relevant agencies. ( the level of rating) The figures for total seizures within Japan in 2015 are to be published in October or thereabouts, so once these are available, the MOF will calculate the mean value for the period from 2011 to 2015 and publish the value in the 2016 Performance Evaluation Report. ) Policy 5-3-2-A-2: Proportion of inspections based on pre-selection (Unit: %) 2011 2012 2013 2014 2015 figure 19.4 22.1 24.8 24.3 Japan Customs conducts targeted enforcement in the inspection of maritime cargoes arriving Japan, selecting the cargo to be inspected before an import declaration is received (pre-selection). The MOF intends to refine the information used in pre-selection and make more effective use of it, so the target was set as "." ( the level of rating) In 2015, Japan Customs conducted targeted enforcement by narrowing down inspection targets through preselection. As a result, the portion of inspected maritime cargoes increased, but the target of inspections based on preselection was not achieved, so the level of was rated "." (qualitative ) [Key indicator] Policy 5-3-2-B-1: Rigorous antismuggling activities at the border figure Rigorous anti-smuggling activities at the border Japan Customs conducted rigorous anti-smuggling activities through effective utilization of enforcement/inspection devices, collaboration with relevant agencies, and collection and utilization of valid information.

Conducting a strict enforcement through effective utilization of enforcement/inspection devices, collaboration with relevant agencies, and collection and utilization of valid information is the basis of the measures to be taken by Japan Customs that contribute to prevent smuggling of prohibited goods, and it is necessary to comprehensively take into account these activities in evaluating the. Therefore, to carry out rigorous anti-smuggling activities at the border is set as the target. ( the level of rating) Enforcement/inspection devices such as X-ray inspection devices, illicit drugs detectors and explosives trace detectors were put in place in response to an increase in foreigners entering Japan and for preventing smuggling of designated substances, as well as for strengthening border control ahead of the 2016 Ise-Shima Summit Meeting and 2020 Tokyo Olympic Games and Paralympic Games. In order to prevent smuggling of prohibited goods at the border, it is necessary to actively collaborate with relevant agencies in and outside Japan. In 2015, joint training drills with relevant agencies were carried out 241 times, and collaboration with domestic agencies was strengthened in such manners as actively exchanging information and conducting investigations when smuggling cases were detected. Furthermore, a Customs Mutual Assistance Agreement (CMAA) was newly signed with Spain and efforts for collecting information from overseas were thus made positively. In April 2015, it was made possible to provide a PNR electronically with the aim of selecting air passengers to inspect their baggage more effectively and efficiently. Japan Customs started to receive electronic reports from air carriers in July 2015 and strove to enhance analysis and utilization of obtained PNRs. As a result of strengthened enforcement at the border through effective utilization of enforcement/inspection devices, the total volume of seized illicit drugs was as large as 519kg. Comprehensively taking into account these efforts, the level of was rated "." of Measures a: Considerable progress toward accomplishment Regarding the key measurement indicator "Rigorous anti-smuggling activities at the border," Japan Customs strove to ensure effective and efficient control at the border through the utilization of X-ray inspection devices and other enforcement/inspection devices and prior information such a passenger name record (PNR). Japan Customs also actively collaborated with relevant agencies in and outside Japan through joint anti-smuggling activities and joint investigations into smuggling cases, and promoted information exchange with these agencies. In the meantime, the proportion of inspections based on pre-selection has slightly failed to achieve the target. Although the proportion of the total volume of illicit drugs seized at the border for 2015 has yet to be published, the data on detected smuggling cases of illicit drugs in 2015 reveal that the total volume of seized illicit drugs exceeded 500kg for five years in a row, and that the number of detected cases marked a record high at 1,896 due to the inclusion in April of designated substances into the category of the cargoes whose import is prohibited under the Customs Law. Thus, regarding already made definite, the key indicator was rated "" and the other indicator was rated "." Therefore, the level of was rated "a: Considerable progress toward accomplishment." Measures Policy 5-3-3: Improve the user-friendliness of customs procedures ) Policy5-3-3-A-1: Average time required for customs clearance of imports (Unit: hours) Maritime figure 2003 (Carried out in March 2004) Reduction 4.3 0.6 2005 (Carried out in March 2006) 3.3 2008 (Carried out in March 2009) 3.1 0.4 2011 (Carried out in March 2012) 2014 (Carried out in March 2015) 3.0 3.0 2.5 2.6 2.4 0.4 0.3 Air figure 0.4 0.4 0.4 0.3 0.3

These targets have been set in light of the results of recent surveys, as an indicator measuring to what expedited and facilitated international logistics have been realized by the initiatives to improve customs procedures. ( the level of rating) As the targets were met or exceeded, the level of was rated "." Policy 5-3-3-A-2: Usage of the AEO system by business operators (number of new AEO approvals) (Unit: operators) 2011 2012 2013 2014 30 40 30 2015 30 figure 37 47 32 33 44 ) The AEO system streamlines and expedites cargo procedures for business operators that have put in place compliance systems including cargo security management. This is an indicator aimed at achieving compatibility between improved security and facilitation throughout international logistics by maintaining and increasing the reliability of the system, while seeking to popularize it, and the target has been set with reference to actual performance in recent years. ( the level of rating) The public and private sectors made efforts for increasing the number of new AEO approvals. In particular, consultations of customs brokers seeking AEO approvals increased and Japan Customs offered guidance and advice in accordance with individual cases, ahead of the introduction of a new system to eliminate restrictions on jurisdictions of customs offices to which import/export declarations are submitted. As a result, the number of new AEO approvals increased and the target was exceeded, so the level of was rated "." [Key indicator] Policy 5-3-3-A-3: satisfaction of users in the customs clearance of imports and exports (top 4 grades) (Unit: %) Importers and exporters figure 2011 95.2 2012 96.1 2013 2014 2015 Maintain Maintain 96.2 95.8 94.0 Customs brokers figure 90.7 Maintain Maintain 93.1 97.4 97.3 97.1

The purpose of this indicator is to improve import/export customs clearance system and make it user-friendly, as well as to ensure proper customs clearance procedures; the target is to maintain the figures achieved in the past. (Note) A questionnaire-based survey was conducted among importers and exporters and customs brokers, in which they were asked to rate customs clearance procedures, etc. on the basis of a seven-grade evaluation scale ("Very good," "Good," "Rather good," "Average," "Rather poor," "Poor," and "Very poor"). The performance was evaluated on the basis of the top four grades. ( the level of rating) The target was not met in either case, but the difference between the target (figure for the previous fiscal year) and the actual result achieved was small, so the level of for both measures was rated "." The reason for the abovementioned rating is as follows: (i) Japan Customs needs to maintain a stern attitude toward users for the purpose of controlling smuggling of illicit drugs and ensuring fair and proper taxation, and is not necessarily be evaluated highly from the viewpoint of satisfaction of users. In particular in 2015, strengthened counterterrorism measures were required due to serious circumstances where Japanese nationals were victimized in a terror attack in Syria and serial terror attacks occurred in Paris, France. Additionally, control of designated substances at the border was also strengthened. (ii) This questionnaire-based survey is on a voluntary basis. Importers and exporters often entrust customs clearance procedures utterly to customs brokers and such importers and exporters replied "Don't know" or provided no replies to questions, which may further decrease the number of samples and widen the fluctuation range as a result. (iii) The level of satisfaction still remains at a high level close to 95%. of Measures a: Considerable progress toward accomplishment The key indicator " satisfaction of users in the customs clearance of import and exports" maintained a high level, but the was slightly below the target. On the other hand, the target was achieved for other measurement. Thus, as the key measurement indicator was rated "," the level of was rated "a: Considerable progress toward accomplishment." Measures Policy 5-3-4: Enhance the functions of customs procedure systems and improve their user-friendliness [Key indicator] Policy 5-3-4-A-1: Operational status of the NACCS (system availability) (Unit: %) 2011 2012 2013 2014 2015 99.99 99.99 99.99 99.99 99.99 ) figure 100.00 99.99 100.00 100.00 NACCS is Japan's core system for international logistics, so the operational status of NACCS has a major impact on international logistics involving Japan. As the total length of time for which the system can be out of operation (due to system failure) without impeding smooth international logistics is believed to be around one hour over the course of a year, the target for annual system availability has been set at 99.99%. If a system failure equivalent to 0.01% of the total annual operating time occurs, the system will be down for just under an hour (24 hours (converted into minutes) 365 days 0.01% = 52.56 minutes). 99.99 ( the level of rating) As the target was exceeded, the level of was rated "." of Measures s: Goal achieved The indicator, "Operational status of the NACCS," was rated "," so this measure was rated "s: Goal achieved."

Measures Policy 5-3-5: Provide information to facilitate effective customs administration Policy5-3-5-A-1: Number of visitors accessing the Japan Customs website (Unit: people) 2011 2012 2013 2014 2015 2,170,000 1,450,000 2,500,000 2,900,000 ) figure 1,897,013 2,480,760 2,697,892 2,897,470 2,937,334 This indicator has been set because although the MOF actively strives to disseminate information about Japan Customs initiatives in a prompt and user-friendly manner, it is necessary to measure whether citizens are actually aware of this information. The target has been set with the goal of improving on recent performance. ( the level of rating) As the target was exceeded, the level of was rated "." Policy 5-3-5-A- 2: 2011 2012 2013 2014 2015 satisfaction following lectures and tours of customs facilities Maintain Maintain Maintain Maintain Maintain (the top three grades) (Unit: %) figure 98.3 97.3 93.3 92.9 92.2 ) This indicator has been set because although the MOF actively strives to explain and promote understanding of Japan Customs initiatives in a user-friendly manner via lectures and tours of customs facilities, it is necessary to measure whether the content of this information is actually helpful to citizens. The target has been set with the goal of maintaining the high level of satisfaction achieved in recent years. (Note) A questionnaire-based survey was conducted among participants in lectures and tours of customs facilities, in which they were asked to rate their experience on the basis of a seven-grade evaluation scale from "Very good" to "Very poor." ( the level of rating) The target was not met, but the difference between the target (figure for the previous fiscal year) and the actual result achieved was small, and the level of satisfaction was over 90%. Therefore, the level of was rated "."

Policy 5-3-5-A-3: Awareness of import-export and customs clearance systems (Unit: %) Advance ruling system figure 2011 75.0 68.5 2012 75.0 69.4 2013 75.0 74.2 2014 75.0 78.9 2015 75.0 79.0 System for the extension of delivery deadlines figure 80.0 80.0 80.0 80.0 71.3 68.7 74.7 78.2 80.0 78.0 ) AEO system Out-ofhours customs clearance figure 90.0 90.0 90.0 80.0 81.3 79.6 87.2 86.4 90.0 90.0 90.0 90.0 90.0 figure 80.0 79.3 82.9 87.2 83.0 The purpose of this indicator is to provide information on various customs clearance systems to improve convenience of users and at the same time achieve effective customs administration. Based on the past, the target was set to maintain that of 2014. (Note) A questionnaire-based survey was conducted among importers and exporters, to ascertain whether or not they were aware of various customs clearance systems, such as the advance ruling system and the AEO system. ( the level of rating) As the target for the advance ruling system was exceeded, the level of was rated "." Regarding the other three measures, the figures achieved were below the target, so the level of was rated "."

[Key indicator] Policy 5-3-5-A-4: Awareness of anti-smuggling activities (Unit: %) 2011 2012 2013 2014 2015 80.0 80.0 80.0 80.0 80.0 figure 75.4 77.8 80.2 80.4 83.5 ) This indicator has been set because although the MOF actively strives to disseminate information in a prompt and user-friendly manner concerning Japan Customs enforcement initiatives at the border that target illicit drugs, guns, and other socially undesirable items, and weapons of mass destruction and other items linked to terrorism, as well as highlighting the importance thereof, it is necessary to measure whether citizens are actually aware of this information. In light of past performance, the target remains at the level set for 2014. (Note) A questionnaire-based survey was conducted among importers and exporters and lecture participants, to ascertain whether or not they were aware of anti-smuggling activities such as the use of drug detection dogs and X-ray inspection devices. ( the level of rating) As the target was exceeded, the level of was rated "." ) Policy 5-3-5-A-5: Operation of the 2011 2012 2013 2014 2015 Customs Counselor System (level of user satisfaction with Maintain Maintain advice from Japan Customs) (Top 4 grades) (Unit: %) figure 96.3 96.6 96.6 96.4 95.7 The purpose of this indicator is to achieve operational improvements in the Customs Counselor System and provide more efficient administrative services. The target was set to maintain the in the past. (Note) A questionnaire-based survey was conducted among importers and exporters, customs brokers, and visitors to inquiry desks, in which they were asked to rate the advice provided by Japan Customs on the basis of a seven-grade evaluation scale ("Very good," "Good," "Quite good," "Average," "Quite poor," "Poor," and "Very poor"). The performance was evaluated on the basis of the top four grades. ( the level of rating) The target was not met, but the difference between the target (figure for the previous fiscal year) and the actual result achieved was small, and the level of satisfaction was over 95%. Therefore, the level of was rated "."

Policy 5-3-5-A-6: Number of times the Customs Answer (FAQ) facility is used (Unit: times) 2011 2012 2013 2014 2015 192,000 128,000 150,000 150,000 150,000 ) figure 138,123 147,423 129,275 126,064 125,653 The purpose of this indicator is to improve user-friendliness, such as revising the content of questions and answers in a timely manner to reflect revisions of the system; the target for 2015 is to continue to maintain the figures achieved in 2014. ( the level of rating) As the target was not met, the level of was rated "." of Measures a: Considerable progress toward accomplishment In addition to exceeding the target for the key measurement indicator "Awareness of anti-smuggling activities," the MOF met the target for the measurement indicator "Number of visitors accessing the Japan Customs website." On the other hand, the MOF narrowly missed achieving the same level of performance as last year in regard to the measurement " satisfaction following lectures and tours of customs facilities" and "Operation of the Customs Counselor System." While it achieved one target relating to the measurement indicator "Awareness of importexport and customs clearance systems," the MOF failed to achieve the targets for awareness of the other systems. In addition, it failed to meet the target for the measurement indicator "Number of times the Customs Answer (FAQ) facility is used." Accordingly, as some of the non-major measurement were rated " " or "," these measures were rated "a: Considerable progress toward accomplishment." Departments responsible Customs and Tariff Bureau (Customs Clearance Division, Planning and Administration Division, Enforcement Division, Post Clearance Audit, Investigation and Intelligence Division, International Negotiation Division, Information Management Office, Customs Administration Research Office), Central Customs Laboratory Timing of policy evaluation June 2016