RESTRICTED
WORLD TRADE G/SG/W/105
11December 1995
ORGANIZATION(95-4021)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYJAPAN1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFAGREEMENT
Thefollowing communication, dated 7December 1995, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
1. Thefirst36pages oflawsandregulations notified byJapan include lawsandregulations relating
toforeign exchange andforeign tradecontrols andcertain customs laws. Withtheexception ofarticle 9
oftheCustoms Tariff Lawandcertain other minor exceptions, whyhavethese lawsandregulations
beennotified?
2. Certain provisions within theForeign Exchange andForeign Trade Control Lawappear to
authorize safeguard-type actions, suchasaprohibition ontheimportation ofcertain technology for
upto4months when suchimportation "might imperil thenational security, disturb themaintenance
ofpublic order, orhamper theprotection ofthegeneral public; ...might adversely andseriously affect
activities ofoureconomy". Para. 3,page20.Also, article 52onpage22provides "Forthepurpose
ofsound development offoreign trade andthenational economy, aperson whoistoimport goods
might beobligated, asCabinet Order provides for,toobtain approval therefor"; andarticle 55,also
onpage22,which provides authority torequire "awarranty intheformofcash, securities, etc.,for
theexpansion of...importation". What istherelationship ofthese measures withJapan’sobligations
under theAgreement onSafeguards?
3. (a) Why doesJapan maintain twodifferent setsofregulations forsafeguard measures,
oneforwhen themeasure isintheform ofaquota, andasecond forwhen itisin
theform ofaduty?
(b) Unless thenature ofthesafeguard measure tobetaken hasbeenpredetermined, how
isitdetermined, attheoutset, whether theinvestigation istobeconducted bythe
Minister ofInternational Trade andIndustry orbytheMinister ofFinance?
(c) There appear tobesubstantive andprocedural differences between thetwosetsof
regulations. Forexample, under article 2oftheregulations relating toimport quotas,
thedomestic industry appears tobedefined interms ofproducers oflike"and" directly
competitive products, butunder article 1oftheregulations relating toemergency duties
andarticle 9oftheCustoms Tariff Lawitisdefined interms oftheproducers oflike
"or"directly competitive products. Notification requirements isarticles 10(quotas)
and2(duties) oftherespective regulations alsodiffer. Forexample, unlike article 10,
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article 2oftheregulations relating toemergency import quotas requires amoredetailed
productdescription;appearstoallowfornotificationofaninvestigationalreadyinitiated,
asopposed toonethatwill("shall") beinitiated; andappears toindicate theperiod
oftimeduring theinvestigation willbeconducted, asopposed totheperiod timethat
theinvestigation willcover (e.g., import andindustry trends overthepast3-5years).
Arethere realdifferences and,ifso,why?
4. (a) Isthereanyprocedure under Japanese laworregulation thatallows producers, atrade
association ofproducers, oralabour union orgroup ofworkers topetition theMinister
ofInternational Trade andIndustry and/or theMinister ofFinance foraninvestigation
and,ifthatpetition isingoodorder, requires theMinister(s) toconduct aninvestigation
andmake afinding?
(b)Ifyes,whatarethepetitioning andother requirements?
(c) Ifthereisnoprovision forthefiling ofapetition, areanywritten submissions seeking
aninvestigation filedbyindustry representatives withaminister made available for
review byinterested parties during thecourse ofaninvestigation?
5. IfJapan, under article 5:5ofitsregulations governing thesizeofimport quotas, allocates shares
ofaquota inamanner other thanthatprovided forinarticle 5:2(a) oftheAgreement onSafeguards,
doesJapan firstintend toengage inconsultations under theauspices oftheCommittee onSafeguards
andclearly demonstrate totheCommittee thatimports from certain WTO members haveincreased
disproportionately inrelation tototalimports?
6. Under article 13ofitsregulations relating toimport quotas, doesJapan make available tothe
public thenon-confidential evidence relating totheinvestigation, ordoesitlimitinspection ofsuch
evidence onlytothose whohave been abletodemonstrate thattheyareinterested parties inthe
investigation, assuggested inarticle 13:2? How isinterested party defined, andhowareinterested
parties notified oftheinvestigation andoftheirrights toobtain suchevidence?
7. Does Japan provide interested parties withthe"opportunity torespond tothepresentations
ofothers", asrequired byarticle 3:1oftheAgreement onSafeguards?
8. Inmaking determinations under either setofregulations, whatdefinitions oftheterms "serious
injury" and"threat ofserious injury" doestheminister apply, andwhateconomic factors doeshetake
intoaccount?
9. Article 9oftheCustoms Tariff Lawdoesnotcontain alimitation onsafeguard actions similar
tothatinarticle 5:1oftheAgreement onSafeguards ("AMember shallapply safeguard measures only
totheextent necessary toprevent orremedy serious injury andtofacilitate adjustment"), butinstead
authorizes "adutyinanamount equal toorlessthantheamount corresponding tothedifference between
thecustoms value ofthesaidproduct andthewholesale price inJapan oflikeorsimilar product ...".
HowdoesJapan intend toinsure thatanymeasures taken willbeonlytotheextent necessary toprevent
orremedy serious injury andfacilitate adjustment?
10. Article 9:6oftheCustoms Tariff Lawandfollowing paragraphs appear toauthorize thetaking
ofaprovisional safeguard measure forupto200days.
(a) Ifthisisthecase, aside from "sufficient evidence" ofincreased imports andserious
injury, whatisthestandard thatmustbeapplied indetermining whether thereisabasis
fortaking suchaction?G/SG/W/105
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(b) Does Japan intend, through these paragraphs, toauthorize thetaking ofprovisional
safeguard measures thatconform withthose authorized byarticle 6oftheAgreement
onSafeguards? Ifso,whyisthere noreference totheterm"critical circumstances"
ortothedefinition ofthatterminarticle 6oftheAgreement, ortothe"clear evidence"
testrequired byarticle 6?
(c)Who intheJapanese Government makes thedetermination concerning whether the
standard fortaking suchanaction issatisfied?
11. Thebasisforextending theperiod ofasafeguard measure under Japanese regulations appears
todiffer fromthatunder article 7:2oftheAgreement onSafeguards--under article 7:2there mustbe
afinding thatthesafeguard measure "continues tobenecessary toprevent orremedy serious injury
andthatthereisevidence thattheindustry isadjusting". Forexample, under article 18oftheJapanese
regulations relating toimport quotas, ameasure maybeextended bytheMinister ofInternational Trade
andIndustry "because oftheimportation intoJapan ofsuchparticular product inincreased quantities
andthattheDomestic Industry Concerned isthenintheprocess ofstructural adjustment." Howdoes
Japan'stestforextending asafeguard measure conform totherequirement inarticle 7:2ofthe
Agreement? Whydoesthestandard forextending ameasure inarticle 18differ fromthatinarticle 9:10
oftheCustoms Tariff Lawforextending ameasure intheform ofaduty?