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GENERAL AGREEMENT on 15 June 1968 TARIFFS and TRADE Special Distribution

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GENERAL AGREEMENT on 15 June 1968 TARIFFS and TRADE Special Distribution RESTRICTED COM.AG/W/20/Add.7 GENERAL AGREEMENT ON 15 June 1968 TARIFFS AND TRADE Special Distribution Agriculture Committee Original: English JAPAN Information Supplied in Respect of UNMANUFACTUREDTOBACCO Page A. Production: Production measures and policies 2 B. Protection and support measures and policies 4 C. Consumption and internal prices 6 D. International trade and prices 9 COM.AG/W/20/Add.7 Page 2 UNMANUFACTURED TOBACCO A. PRODUCTION: PRODUCTION MEASURES AND POLICIES A.1. Statistical data on total volume of production; total acreage and average yield LEAF TOBACCO (APRIL/MARCH YEARS) Unit 1964 1965 1966 19671/ Acreage hectare 82,424 86,032 86,999 87,450 Production '000 kgs. 212,168 192,418 197,471 207,002 Average yield per unit of production kg./10 a 257 224 227 237 The figures for 1967 are provisional. A.2. Trends in production and estimate for 1970 Owing to the declining growth rate of sales of manufactured tobacco, the carry-over stocks in the Japan Monopoly Corporation (hereinafter referred to as the "Corporation") has been on the increase. With the view to adjusting the surplus stocks the Corporation plans to control production for the time being. A.3. Statistical data on carry-over stocks '000KGSFOR UNMANUFACTURED TOBACCO (APRIL/MARCH. YEARS) COM.AG/W/20/Add.7 Page 3 A.4. Factors which affect production Production of leaf tobacco is controlled by the Corporation through acreage allotment for the planned production and assurance of production costs to producers. Considerable decrease in agricultural population has been witnessed in recent years with the result that the tobacco, one of the most labour intensive crops: has been replaced by more productive crops such as fruit and rice. To meet these circumstances, the Corporation has been making efforts to promote the mechanization of tobacco cultivation and to expand the cultivative area per producer, with a view to securing stabilized production and reduction of costs. A..5. Policies and measures of governments or other bodies likely to influence production, other than those under B (1) Formation of concentrated production areas The Corporation has been taking the measures for an appropriate variety in an appropriate area in order to supply better leaf at low costs. (2) Technical assistance Technical assistances of the Corporation have been orientated to the following objectives: (a) to promote production of mild and good flavoured leaf; (b) to normalize yield per unit; (c) to promote labour saving methods of production. Page 4 B. PROTECTION AND SUPPORT MEASURES AND POLICIES B.I. Internalsupportmeasures and policies B.I.1 Inventoryof the instruments of support The Corporationalthe sole producer of manufactured tobacco in Japan, makes purchase of all domestic manufactured tobacco at fixed prices. The purchase price of the Corporation is annually determined on the advice of the Tobacco Cultivation Council, which is an advisory body to the Corporation and is composed of six experts as well as five representatives of producers. In determining the purchase price, considerations are given to the factors such as production costs of unmanufactured tobacco, supply- demand situations, adequate profits to producers and reasonable production of unmanufactured tobacco leaf. B.I.2. Levels of guaranteedprices and support prices US dollars per kg. (April/March years) 1964 1965 11966 1967 Purchase price 1.20 1.27 1.27 1.44 B.I3. Amount of producer subsidies (1) Disaster compensation subsidies The Corporation grants compensation subsidies to producers of unmanufactured tobacco within the limit of 50 per cent of their usual earnings in case more than 30 per cent of their estimated yield should be lost by dint of a disaster. (2) Advanced payment of producers earnings About 20 per cent of producers' usual earnings is prepaid, if necessary, prior to their cultivation at the request of producers. (3) Assistance to build the curing barn for leaf tobacco In cases where producers build a curing barn for leaf tobacco a part of the ouilding costs is subsidized by the Corporation at the request of producers. COM.AG/W/20/Add.7 Page 5 B.I.4. Average returns to producers (US dollars) 1964 1965 1966 1967 Average return (per kg.) 1.09 1.23 1.37 1.41 Average return per producer . 708 733 875 1,016 B.II. Measures at the frontier (1) Import duties1/ BTN Description General Tempor- GATT ary Pre-KR. KR 24.01 Unmanufactured . 55% - - - tobacco, tobacco refuse. 24.02-1-(1) Cigars and cheroots 200% - - 24.02-1-(2) Other (cigarettes, 355% - - - pipe tobacco, etc.) 24.02-2 Tobacco extracts and 20% - - - essences (2) Import system1/ All products are subject to import quota. Importation of unmanufactured and manufactured tobacco is all conducted by the Corporation and is exempted from import duties. In cases, however, where manufactured tobacco is indispensable for reasons of health or customs, individuals can import, manufactured tobacco subject to permission by the Corporation and against payment of import duties. COM.AG/W/20/Add. 7 Page 6 C. CONSUMPTION AND INTERNAL PRICES C.1. Statistical data on consumption (1) Unmanufactured tobacco at in-factory basis ('000 kg., April/March years) 1964 1965 1966 19671/ Domestic 143,476 149,083 144,064 147,889 Imported 21,452 22,477 24,179 29,948 Total 164,928 171,560 168,243 177,837 1 /The figures for 1967 are provisional. (2) Manufactured tobacco Unit 1964 1965 1966 1967 Domestic ) 159,071 170,713 180,583 190,717 Cigarettes Imported ) million 620 517 489 586 Total ) pieces 159,691 171,240 181,072 191,303 Domestic ) 1,752 1,931 2,753 7,678 Cigars Imported ) '000 pieces 701 2,321 4,462 6,054 Total 2,453 4,252 7,215 13,232 Pipe Domestic ) 1,625 1,393 1,155 1,069 tobacco Imported ) '000 kgs, 428 358 333 268 including ) fine cut Total ) 2,053 1,751 1,488 1,337 tobacco ) Note: Calendar year. C.2. Trends in consumption and estimates for 1970 During the period between 1961 and 1966, the annual average rate of increase in consumption was 6.5 per cent, as compared with 4.7 per cent during the period between 1953 to 1960. Among other factors the increase offilter-tipped cigarettes contributed to the general upward trend of consumption. The growth rate of filter-tipped cigarettes has, however, been declining. The annual average rate of growth of total consumption of manufactured tobacco is expected to be about 5 per cent. COM .AG/W/20/Add.7 Page 7 C.3.Retail prices and wholesale prices ..-.; (1) Retail prices Varieties Pieces Retail prices (U$¢) Filter-tipped Kohaku 20 28 cigarettes Yamato 20 28 Hope (regular size) 10 11 Hope (long size) 20 22 Peace (long size) 20 22 hi-lite (Deluxe) 20 22 hi-lite 20 19 Luna 20 22 Mf 20 19 Izumi 12 14 Hibiki 20 17 Wakaba 20 14 Other cigarettes Fuji 10 14 Peace 50 56 Peace 10 11 Taiyo 20 19 AAA 20 17 Ikoi 20 14 Shinsei 20 11 Golden bat 20 8 Cigarette with Asahi 20 8 mouthpiece Cigar Pan d'or 25 1,250 Gloria 5 69 Paloma 5 56 Pipe tobacco Momoyama 50 g 42 Fine cutting Kikyo 30 g 17 tobacco (2) Wholesale prices All manufactured tobacco sold by the Corporation to retailers. Retailers margin ranges from 6 to 10 per cent of his turnover. COM .AG/W/20/Add .7 Page 8 C.4. Factors which condition the evolution of internal consumption C.5. Policies and measures affecting consumption COM .AG/W/20/Add 7 Page 9 D. INTERNATIONALTRADE AND PRICES D.1. Statistical data on the volume .nd value of imports and exports by source and destination (1) Import (a) Unmanufactured tobacco (Volume/ 1000 kgs. value/US$ '000) 1964 - 1965 1966 1967 Volume Value Volume1965iValue Volume16 Value Volume196 Value United 15,012 31,378 12,477 26,450 21,525 147,103 18,372 40,625 States Rhodesia 5,319 7,103 7,927 11,106 878 1,156 Thailand 2,197 2,508 1,359 1,858 1,476 2,069 1,500 2,089 India 3,590 2, 689 773 8&47 1, 384 1,789 2,672 3,333 Greece 1,629 3,372 2,961 5,733 1,526 2,902 2,391 4,289 Turkey 951 1,706 406 692 2,482 3,581 2,215 3,352 Bulgaria 30 47 50 72 300 450 499 844 Yugoslavia 45 69 150 242 295 478 361 625 Other 667 1,022 63 67 83 131 248 183 162 49,892 26,167 47,069 1~~~2,425,949 59,661___ 28,25727 ___55,344 Notes: 1. Calendar year. 2. Value and volumebased on the inspection by the Corporation. COM.AG/W/20/Add.7 Page 10 (b) Manufactured tobacco (volume/million pieces, value/US$ '000) 1964 1965 1966 1967 Volume Value Volume Value Volume Value Volume Value (i) Cigarettes United 510 2,597 225 1,147 380 1, 964 452 2.,375 States United . 110 578 103 550 74 400 111 586 Kingdom F.R. 22 108 .25 125 27 144 55 311 Germany Ryukyu 662 2 922.5 118 392 89O 2,631 760 2,211 Other 1 3 3 11 2 8 Total 1,304 5,508 472 2,217 1,374 5,153 1, 380 5,489 (ii) Çigars United 1.0 43 1.0 43 2.3 6.7 232 Other 0.2 34 0.4 57 O .6 49 0.3 .3 40 Total 1.2 77 1.4 99 2.9 131 7.0 .0 272 (iii) Pipe tobacco and-fine cutting tobacco ('000 kgs.
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