US-Japan Trade Agreement Update on Semiconductor Modules
The United States and Japan have finalized a bilateral agreement to enhance cooperation on the trade of semiconductor modules under HS Code provisions as defined in note 18(g). This agreement aims to streamline customs processes for these goods.
October 15, 2023
Impact: This agreement is expected to reduce tariffs and expedite the clearance of semiconductor modules, boosting trade efficiency and lowering costs for tech industries in both countries.
New Export Controls on Modules to Japan
The US Department of Commerce announced tightened export controls on certain high-tech modules to Japan, citing national security concerns, though exceptions under note 18(g) may apply.
September 20, 2023
Impact: These controls could slow down the export of specific modules, potentially increasing costs and delays for Japanese importers while encouraging domestic production in the US.
Japan Increases Demand for US-Origin Modules
Japan's tech sector reported a surge in demand for US-origin modules as defined in note 18(g), driven by supply chain diversification efforts amid global shortages.
August 5, 2023
Impact: This increased demand is likely to strengthen US-Japan trade ties, with US exporters of modules seeing higher sales and potential for long-term contracts.
