RESTRICTED
WORLD TRADE G/STR/Q1/JPN/1
1July1996
ORGANIZATION(96-2508)
Original: English Working Party onState Trading Enterprises
REPLIES TOQUESTIONS FROM THE UNITED STATES1
ONTHE ARTICLE XVII NOTIFICATION OFJAPAN2
Thefollowing communication, dated 21June1996, hasbeenreceived from thePermanent
Mission ofJapan.
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Replies toquestion 1
1. Private traders canfreely import wheat, subject toover-quota tariffs, andtheFood Agency
isnotinanywayinvolved inthemarketing ordistribution ofover-quota imports, except tocollect
apartoftheover-quota tariffs andtoinspect thequantity, quality andsafety ofsuchimports.
2. In-quota imports ofwheat consist of:
(i) imports made bytheFood Agency; and
(ii) imports ofwheat fortheoutward processing trade, andimports ofwheat flourforuse
ininternational hotels andduring cruises oninternational maritime vessels.
Thelatter imports (ii)areconducted byprivate traders. Concerning suchprivate trade, only
in-quota tariffs areimposed, andmark-ups arenotcollected.
Criteria forimporters ofwheat fortheoutward processing trade:
(i) Theprocessors should owntheapparatus forprocessing wheat intosuchfoodproducts
asnoodles, biscuits, bread, soysauce, wheat flour andwheat flour mix;
(ii) Theprocessors should haveanoutward processing trade record within thepastthree
years.
1G/STR/W/10.
2G/STR/N/1/JPN.
./.G/STR/Q1/JPN/1
Page2
Criteria forimporters ofwheat flour foruseininternational hotels:
- Importers areentrusted byregistered international hotels toimport wheat flourfortheir
use.
Criteria forimports ofwheat flourforconsumption during cruises oninternational maritime vessels:
- Wheat flour forthispurpose istreated asbonded goods andanytrader canimport it
freely. Thecriteria hasnotbeenestablished.
3. TheFoodAgencytakesproceduresinordertoissuethecertificatenecessaryforin-quotaimports
ofwheat foroutward processing trade andthatofwheat flour foruseininternational hotels.
Replies toquestion 2
According totheUnderstanding ontheInterpretation ofArticle XVIIoftheGeneral Agreement
onTariffs andTrade 1994, state-trading enterprises aredefined as:
"Governmental andnon-governmental enterprises, including marketing boards, which have
beengranted exclusive orspecial rights orprivileges, including statutory orconstitutional
powers, intheexercise ofwhich theyinfluence through theirpurchases orsalesthelevelor
direction ofimports orexports".
TheJapan RawSilkandSugar PriceStabilization Agency isnottheorganization which imports
sugar; anyprivate importer canfreely import sugar. TheAgency isonlyinvolved intheimport of
sugar tocollect thelevy(which corresponds toallother duties orcharges ofanykindimposed onor
inconnection withimportation, asspecified inGATT 1994Article II1(b)anddescribed inSection 1-A
ofJapan'sSchedule).
Therefore, bearing inmind thedefinition above, theAgency hasnotbeengranted exclusive
orspecial rights orprivileges, andsugar isnotsubject tostatetrading.