RESTRICTED
WORLD TRADE G/SG/N/1/JPN/2
17July1995
ORGANIZATION(95-2029)
Original: English Committee onSafeguards
NOTIFICATIONS OFLAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TOSAFEGUARD MEASURES
JAPAN
Thefollowingcommunication,dated7June1995,hasbeenreceivedfromthePermanentMission
ofJapan.
_______________
Inregard totheSafeguards Agreement 12.6, Iamsending youattached thefollowing laws
andregulations:
Laws andregulations relating totariff measures
- Customs Tariff Law[Article 9]*
- Cabinet Order concerning Emergency Duties
Laws andregulations relating toquantitative restrictions
- Foreign Exchange andForeign Trade Control Law[Article 52]*
- Import Trade Control Order [Article 3]*
- Regulations toGovern Emergency Measures tobetaken inResponse toanIncrease
intheImportation ofGoods
(*refers tothose Articles directly related totheSafeguard measures)
Thecompetent authorities inJapan toinitiate andconduct investigations relating tosafeguards
aretheMinistry ofFinance, theMinistry ofInternational Trade andIndustry andthoseMinistries having
jurisdiction overtheproduct(s) concerned withthesafeguards.G/SG/N/1/JPN/2
Page2
(Provisional Translation)
FOREIGN EXCHANGE AND FOREIGN TRADE CONTROL LAW
(Law No.228,1December 1949)
Final Amendment (Law No.89,12November 1993)
Contents:
Chapter I General Provisions (Articles 1-9)
Chapter II Authorized Foreign Exchange Banks andMoney Exchangers (Articles 10-15)
Chapter III Payments andReceipt ofPayments (Articles 16-19)
Chapter IV Capital Transactions, etc.(Articles 20-25-2)
Chapter V Direct Domestic Investments, etc.(Articles 26-46)
Chapter VI Foreign Trade (Articles 47-55)
Chapter VI(bis) Committee onForeign Exchange andOther Transactions
(Articles 55-2and55-3)
Chapter VII Relation toAdministrative Procedure Law(Article 55-4)
Chapter VII(bis) Demurral (Articles 56-64)
Chapter VIII Miscellaneous Provisions (Articles 65-69-5)
Chapter IX Penal Provisions (Articles 69-6-73)G/SG/N/1/JPN/2
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CHAPTER I
General Provisions
(Objective)
Article 1.Theobjective ofthisLawshallbe,onthebasisofthefreedom offoreign exchange,
foreign trade, andother external transactions, withnecessary butminimum control oradjustment, to
enable proper expansion ofourexternal transactions, andthereby tofacilitate theequilibrium ofour
balance ofinternational payments andthestability ofourcurrency, aswellastocontribute towards
thesound development ofournational economy.
Article 2.Through Article 4Deleted.
(Scope ofApplication)
Article 5.ThisLawshall alsobeapplicable toanyactperformed outside Japan byany
representative, agent, employee, orother operator ofanyjuridical person having itsmain office in
Japan inregard totheproperty orbusiness ofsuchajuridical person. Itshallsimilarly beapplicable
toanactperformed outside Japan byanynatural person having hisplace ofdomicile inJapan, orhis
agent, employee, orother operator inregard totheproperty orbusiness ofsuchanatural person.
(Definition)
Article 6.Fortheuniformity oftheapplication ofthisLaworanyOrder enacted thereunder,
eachofthefollowing terms shallhavethedefinition given toitbelow:
(1) "Japan" shallmean Honshu, Kokkaido, Shikoku, Kyushu, andother dependent islands
thereof designated byanOrder;
(2) "Foreign countries" shallmean areas outside Japan;
(3) "Our currency" shallmean thecurrency denominated inJapanese Yen;
(4) "Foreign currencies" shallmean those other thanourcurrency;
(5) A"resident" shallmean anynatural person having hisplace ofdomicile orresidence
inJapan, oranyjuridical person having itsmainoffice inJapan. Anybranch, agency,
orother office inJapan ofnon-resident, irrespective ofwhether itislegally authorized
torepresent itsprincipal ornot,shallbedeemed tobearesident, evenwhen itsmain
office isinaforeign country;
(6) A"non-resident" shallmean anynatural orjuridical person other thanaresident;
(7) "Means ofpayment "shallmean anyoneofthose instruments ofpayment designated
byaCabinet Order suchasbanknotes, treasury notes, notes ofsmall denomination,
coins, cheques, billsofexchange, postal money orders, letters ofcredit, orother
instruments ofpayment;G/SG/N/1/JPN/2
Page4
(8) "Foreign means ofpayment" shallmean anyforeign currency, oranyother means
ofpayment, irrespective oftheunitofcurrency, which isdenominated inaforeign
currency orcanbeusedasameans ofpayment inaforeign country;
(9) Deleted;
(10) "Precious metal" shallmean gold, goldalloy, goldcoins notincirculation, orother
articles principally made ofgold;
(11) "Securities" shallmean, irrespective whether theyareregistered ornotpublic bonds,
corporate debentures, stock, shares, instruments embodying rights topublic bonds or
stock, bonds, treasury bills,mortgage debentures, profit certificates, coupons, dividend
certificates, talons; orother securities orinstruments designated byaCabinet Order
assimilar totheabove;
(12) "Foreign securities" shallmean securities payable inaforeign country, ordenominated
inaforeign currency;
(13) "Claimablerights"shallmeantimedeposits,demanddeposits,savingsaccounts,deposits
atnotice, insurance policies, current account balances, oranyother monetary claims
arising outofthelending andborrowing ofmoney, bids,orother transactions, which
arenotmentioned inanyofthepreceding items;
(14) The"futures contract onfinancial indicators, etc."shallmean acontract orcontracts
relatingtofuturestradinginsecuritiesindices,etc.asdefinedinparagraph14,Article2,
oftheSecurities andExchange Law(Law No.25of1948), securities option trading
asdefined inparagraph 15ofthesaidArticle (butlimited, among those relating to
thetrading stipulated inItem2ofthesaidparagraph, totheonestipulated inCabinet
Order; hereinafter thesame inthisItem), andfutures trading inforeign-market
securities asdefined inparagraph 16ofthesaidArticle (butlimited tothetrading
comparable tothefutures trading insecurities indices, etc.defined inparagraph 14
ofthesaidArticle andtothesecurities option trading defined inparagraph 15ofthe
saidArticle), andalsofinancial futures trading asdefined inparagraph 4,Article 2
oftheFinancial Futures Trade Act(Law No.77of1988) (butlimited tothose relating
tothetrading mentioned inItem2ofthesaidparagraph orItem3ofthesaidparagraph
(limited, among those relating tothetrading mentioned inBofthesaidItem, tothe
onespecified byCabinet Order); hereinafter thesame inthisItem), andtransactions
inaforeign financial futures market asstipulated inparagraph 7ofthesaidArticle
comparable tofinancial futures trading defined inparagraph 4ofthesaidArticle;
(15) "Goods" shallmean chattels other thanprecious metal, means ofpayment, securities,
orother instruments embodying aclaimable right; and
(16) "Properties" shallbeconstrued asincluding those items designated inthepreceding
Items (7),(10), (11), (13)and(15).
2. When itisunclear whether agiven entity fallsunder thecategory ofresident ornon-resident,
theMinister ofFinance shalldecide it.G/SG/N/1/JPN/2
Page5
(Foreign exchange rates)
Article 7.TheMinister ofFinance shalldetermine abasicforeign exchange rateofourcurrency
under approval oftheCabinet, which shallbeapplicable toalltransactions uniformly.
2. TheMinister ofFinance shalldetermine appropriate crossexchange ratesforforeign currencies.
3. TheMinister ofFinance maydetermine selling andbuying ratesofforeign currencies applicable
toauthorized foreign exchange transactions, aswellashandling commissions thereof.
4. When theMinister ofFinance hasdetermined thebasic foreign exchange rate,cross foreign
exchange rates, selling andbuying ratesofforeign currencies, orhandling commissions inaccordance
withtheprovisions ofthepreceding three paragraphs, nobody maycarry outtransactions notin
accordance therewith.
(Designation ofcurrencies)
Article 8.Alltransactions authorized under thisLawshallbecarried outinthose currencies
designated bytheMinister ofFinance.
(Suspension oftransactions incaseofemergency)
Article 9.When adrastic change emerges intheinternational economic situation, andthe
competent Minister deems iturgently necessary, hemaysuspend anytransaction governed bythisLaw,
asaCabinet Order provides for,within aperiod designated bytheCabinet Order.
2. Asuspensionundertheprovisionsoftheprecedingparagraphshallmakenopaymentsimpossible
which areauthorized uptillsuchsuspension, andthedelay ofpayment caused bysuchsuspension shall
belimited totheperiod designated bytheCabinet Order.
CHAPTER II
Authorized Foreign Exchange Banks andMoney Exchangers
(Authorization,etc., fordealing inforeign exchange business)
Article 10.Anybankwhich intends todealinforeign exchange business shalldetermine its
offices which dealtherein (including those inforeign countries ofthebanks which arejuridical persons
incorporated inJapan, andthesame shallapply hereinafter), andthescope ofsuchbusiness, andshall
obtain anauthorization therefor from theMinister ofFinance.
2. TheMinister ofFinance shallnotgiveanauthorization under theprovisions ofthepreceding
paragraph when hedeems thattheapplicant bankwillhavedifficulty insecuring sufficient international
credence, orthatitlacks staffmembers capable tocarry outforeign exchange transactions.
3. When anybankwhich obtained alicence mentioned inparagraph 1intends toestablish anew
office wherein foreign exchange business isconducted, ortochange thesubstance offoreign exchange
business, thebankconcerned shallobtain alicence from theMinister ofFinance.G/SG/N/1/JPN/2
Page6
4. When anybank which obtained thelicence mentioned inparagraph 1intends tochange the
name orlocation ofitsoffice wherein foreign exchange business isconducted, ortoabolish foreign
exchange business inthewhole orapartofitsoffice wherein foreign exchange business isconducted,
thebankshallsubmit anotification inadvance totheMinister ofFinance.
(Correspondent arrangements)
Article 11.Anybankhaving obtained anauthorization under thepreceding Article, paragraph 1
oranyforeign exchange bank defined bytheForeign Exchange Bank Law(Law No.67of1954)
(hereinafter collectively referred toas"authorized foreign exchange banks") shallobtain approval of
theMinister ofFinance before concluding anycorrespondent arrangement withbanks orother financial
institutions operating inforeign countries forthepurpose ofcarrying outtransactions governed by
thisLaw.
(Foreign exchange position, etc.,oftheauthorized foreign exchange banks)
Article 11-2. TheMinister ofFinance may, when hedeems itnecessary fortheprevention
ofdrastic exchange ratefluctuation ofourcurrency, orforthemaintenance ofourauthorized foreign
exchange banks 'international credence, impose thefollowing restrictions ontheauthorized foreign
exchange banks, asaCabinet Order provides for:
(1) Toprescribealimitoftheirforeignexchangeposition(whichmeansthebalancebetween
theforeign currency assets andliabilities computed byamethod defined byaCabinet
Order), ortorequire themtosatisfy certain requisites prescribed byaCabinet Order
fortheirforeign exchange business; and
(2) Toprohibit them frompaying interests oncertain accounts, designated byaCabinet
Order, which areinourcurrency andopened inthename ofanon-resident.
(Duty oftheauthorized foreign exchange banks toascertain thelawfulness oftransactions)
Article 12.Theauthorized foreign exchange banks shallnotconduct withacustomer any
businessgovernedbythisLawunlesstheyhaveascertainedthateitherthecustomerpossessestherequired
approval, etc.,fortheproposed transaction, orthetransaction doesnotrequire suchapproval, etc.
(Sanction)
Article 13.Incaseanauthorized foreign exchange bank hascontravened orattempted to
contravene thisLaw, anyOrder enacted thereunder, oranydisposition made thereunder, theMinister
ofFinance mayrevoke theauthorization given toitunder Article 10,paragraph 1,orsuspend itsoffice
which committed suchcontravention from carrying outallorpartofthebusiness governed bythis
Laworrestrict thescope ofsuchbusiness, foraperiod notexceeding one(1)year.
(Money exchangers)
Article 14.Anyperson whointends todealinmoney exchange business shalldetermine its
office which deals therein andthescope ofsuchbusiness, andshallobtain anauthorization therefor
from theMinister ofFinance.
2. Provisions ofArticle 10,paragraph 3andparagraph 4,Article 12;andthepreceding Article
shallapply mutatis mutandis toamoney exchanger (onewhohasobtained anauthorization under the
preceding paragraph, which shallapply hereinafter).G/SG/N/1/JPN/2
Page7
(Obligation tosubmit reports)
Article 15.Theauthorized foreign exchange banks andmoney exchangers shallsubmit reports
tothecompetent Minister, asaCabinet Order provides for,inregard totheirbusiness governed by
thisLaw.
CHAPTER III
Payments andReceipt ofPayments
(Payments andreceipt ofpayments)
Article 16.When thecompetent Minister deems itspecifically necessary forthemaintenance
oftheequilibrium ofourcountry 'sbalance ofinternational payments, orwhen hedeems itnecessary
fortheeffective enforcement ...theprovisions ofthisLaworanyOrder enacted thereunder, hemay
obligate, asaCabinet Order provides for,anyresident ornon-resident which istomake apayment
from Japan toabroad, oranyresident whoistomake apayment to,orreceive apayment from
non-resident (referred toas"payment, etc." inthepresent andthenextArticles), toobtain alicence
therefor, except forsuchpayments, etc.,asresulting from those transactions oractsonwhich heis
empowered toimpose anobligation toobtain alicence orapproval therefor, ortogiveanotice thereof
under theprovision ofArticle 18,paragraph 2,orChapters IVthrough VI.
2. Besides those casesmentioned inthepreceding paragraph, when thecompetent Minister deems
itnecessary forthefaithful performance treaties orother international agreements concluded byour
country, hemayobligate, asaCabinet Order provides for,anyresident whoistomake apayment,
etc.toorfrom anon-resident whoistomake apayment from Japan toabroad, oranyresident who
istomake apayment, etc.toorfrom anon-resident, toobtain alicence therefor except forsuch
payments, etc.,asresulting fromthose transactions oractsonwhich heisempowered, fromthesame
standpoint mentioned above, toimpose anobligation toobtain alicence orapproval therefor, orto
give..notice thereof.
3. When theprovisions ofthisLaworanyOrder enacted thereunder impose anobligation toobtain
alicence orapproval for,ortogiveanotice ofacertain transaction oract,nopayments, etc.,shall
bemade concerning suchatransaction oractwithout obtaining suchalicence orapproval, orwithout
giving suchanotice.
(Methods ofpayments forexternal transactions)
Article 17.Anyresident whoistomake apayment, etc.,forthesettlement ofanyclaim or
debtinregard toanytransaction oractbetween aresident andnon-resident through anyoneofthose
special ways designated byaCabinet Order, suchascredit ordebit toanaccount andothers, shall
obtain alicence therefor from thecompetent Minister asaCabinet Order provides for.
(Export andimport ofmeans ofpayment, etc.)
Article 18.When theMinister ofFinance deems itnecessary fortheeffective enforcement
oftheprovisions ofthisLaworanyOrder enacted thereunder, hemayobligate, asaCabinet Order
provides for,anyresident ornon-resident whoistoexport orimport anymeans ofpayment, orsecurities
toobtain alicence therefor.G/SG/N/1/JPN/2
Page8
2. When theMinister ofFinance deems itnecessary fortheeffective enforcement oftheprovisions
ofthisLaworanyOrder enacted thereunder, orwhen hedeems itspecifically necessary forthe
maintenance oftheequilibrium ofourcountry 'sbalance ofinternational payments, orthestability of
ourcurrency, hemayobligate, asaCabinet Order provides for,anyresident ornon-resident whois
toexport orimport anyprecious metal toobtain alicence therefor.
(Waiver, etc.,ofclaimable rights)
Article 19.When thecompetent Minister deems itspecifically necessary forthemaintenance
oftheequilibrium ofourcountry 'sbalance ofinternational payments, hemayobligate, asaCabinet
Order provides for,anyresident obligee toanon-resident obligor toobtain alicence forthewaiver
orabandonment ofhisrightinwhole orpart.
CHAPTER IV
Capital Transactions, etc.
(Capital transactions)
Article 20.A"capital transaction" shallmean anyoneofthebelow-mentioned transactions
oracts(except fortheactsfalling under thedirect domestic investments, etc.,asdefined byArticle 26,
paragraph 2performed byanyoneofthose mentioned ineachitemofparagraph 1ofthesameArticle).
(1) Transactions concerned withcreation, alteration orextinction ofclaimable rightbased
onadeposit contract oratrustcontract concluded between resident andnon-resident
(astoadeposit contract, itincludes instalment savings contract, instalment deposit
contract, deposit contract andothers designated byaCabinet Order astobesimilar
tothose mentioned above. Itshall bethesame intheItem 4andArticle 22,
paragraph 2)(hereinafter referred toas"transactions concerned withcreation, etc.,
ofclaimable right" inthisArticle, Article 22andArticle 23);
(2) atransaction involving aclaimable right creation, etc.,under amoney lending or
borrowing contract, oraguarantee contract foranobligation, bothofwhich are
concluded between aresident andanon-resident;
(3) atransaction involving aclaimable right creation, etc.,under asales andpurchase
contract between aresident andnon-resident ofaforeign means ofpayment ora
claimable right;
(4) atransaction involving aclaimable rightcreation, etc.,payable inforeign currency,
under adeposit contract, trust contract, money lending andborrowing contract,
guarantee contract foranobligation, orsalesandpurchase contract ofaforeign means
ofpayment, claimable right, andothers, between aresident andanother resident;
(5) acquisition offoreign securities byaresident fromanon-resident (including acquisition
byoneofthemofarighttoenable aresident upondemand toacquire foreign securities
from anon-resident; thesame applying alsotoparagraph 1,Article 22hereof), or
acquisition ofsecurities bynon-resident fromaresident (including acquisition byone
ofthem ofaright toenable anon-resident ondemand toacquire securities from a
resident thesame applying alsotothesaidparagraph);G/SG/N/1/JPN/2
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(6) issuance oroffer forsubscription abroad ofsecurities, orissuance ofoffer for
subscription inJapan offoreign securities byaresident, orissuance oroffer for
subscription ofsecurities inJapan byanon-resident;
(7) issuance oroffer forsubscription inaforeign country ofsecurities denominated or
payable inourcurrency byanon-resident;
(8) atransaction involving creation, etc.ofclaimable right under afuture contract on
financial indicators, etc.between aresident andanon-resident;
(9) atransaction involving creation, etc.ofclaimable right payment ofwhich canbe
received inaforeign currency under afutures contract onfinancial indicators, etc.
between aresident andanother resident, oratransaction involving creation, etc.of
claimable right payment ofwhich canbereceived intheJapanese currency under a
futures contract onfinancial indictors, etc.(limited tothoserelating toforeign currency-
relatedfinancialindicators(referringtothefinancialindicatorsasdefinedinparagraph3,
Article 2oftheFinancial Futures Trading Act; thesame applying alsotoItem1,
paragraph 1ofthenextArticle, andtoItem7,paragraph 1,Article 22hereof);
(10) acquisition ofimmoveables orrights related thereto existing inaforeign country by
aresident, oracquisition ofthesame existing inJapan byanon-resident;
(11) Besides those mentioned inItems (1)and(2),transfer offunds between offices inJapan
andinaforeign country ofoneandthesame juridical person (except forthose
designated byaCabinet Order asbeing thetransfer offunds forthecurrent expenses
necessary fortheoperations ofsuchoffices andforthecurrent transactions thereof);
or
(12) anyother transaction oractdesignated byaCabinet Order asbeing similar toanyone
ofthose mentioned ineachofthepreceding items.
(Capital transactions requiring licence from theMinister ofFinance)
Article 21.Unless aCabinet Order otherwise provides for,when anyresident ornon-resident
istobecome aparty toanycapital transaction given ineither itembelow, either theresident or
non-resident designated intheitemshallobtain alicence therefor from theMinister ofFinance, as
aCabinet Order provides for:
(1) Anycapital transaction falling within thepurview ofItems (1),(3),(4),(8)or(9)of
thepreceding Article (limited, inthecaseofcapital transactions mentioned inItem(8),
tothose relating tothefutures contract concerning financial indicators, etc.relating
tocurrency-related financial indicators; hereinafter thesame inthisItem) other than
those performed byanauthorized foreign exchange bankinthecourse ofitsbusiness
operations andthose inwhich anauthorized foreign exchange bankinJapan acts,in
thecourse ofitsbusiness, asanintermediary, broker oragent (limited, inthecase
ofcapital transactions relating tocontract ofbuying orselling ofmeans ofexternal
payment orofclaimable rightamong thecapital transactions mentioned inItems (3)
and(4)ofthesaidArticle, andofcapital transactions mentioned inItems (8)and(9)
ofthesaidArticle, tothosemeeting theconditions required bytheMinister ofFinance) -
bytheresident; or
(2) thecapital transaction given inItem(7)ofthepreceding Article -bythenon-resident.G/SG/N/1/JPN/2
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2. Only insuchanevent aswhen theMinister ofFinance deems thatifanycapital transaction,
other thanthose forwhich alicence isrequired under theprovisions ofthepreceding paragraph (except
forthose falling under theprovisions ofArticle 24,paragraph 1),wereallowed without anyrestriction
itmight result inanyoneofthebelow-mentioned consequences, andtheachievement oftheobjective
ofthisLawmight become difficult, hemayobligate, asaCabinet Order provides for,anyresident
ornon-resident whoistocarry outsuchacapital transaction toobtain alicence therefor:
(1) Itmight make themaintenance oftheequilibrium ofourcountry 'sbalance of
international payments difficult;
(2) itmight result inadrastic fluctuation ofourcurrency 'sforeign exchange rates; or
(3) itmight result intransfers offunds between Japan andforeign countries inalarge
volume, andthereby adversely affect ourmoney orcapital market.
3. When imposing anobligation toobtain alicence under theprovisions ofthepreceding paragraph
upon thecapital transactions defined byArticle 23,paragraph 1(except forthose forwhich anotice
hasalready beengiven under theprovisions ofparagraph 1ofthenextArticle), theMinister ofFinance
shall doso,alsoconsidering whether, ifsuchcapital transactions were executed, anyoneofthe
consequences mentioned ineachitemofArticle 23,paragraph 2might ensue therefrom, inaddition
tothose mentioned ineachitemofthepreceding paragraph, thusresulting inadifficulty forachieving
theobjective ofthisLaw.
(Notice, etc.,ofcapital transactions)
Article 22.Unless aCabinet Order provides forotherwise, when anyresident ornon-resident
intends tobecome aparty tocapital transactions mentioned below (among thecapital transactions
mentioned intheItem(1),those areexcluded, which aretransactions concerned withtheoccurrence,
etc.,ofcredit based onmonetary loancontract between authorized foreign exchange bankinJapan
andnon-resident, andfurthermore, whose accounting concerned withtheoperation orraising offund
related tothetransactions concerned inthesaidauthorized foreign exchange bankaretobeadjusted
intheaccount ofSpecial International Finance Transactions, andwhich fallunder theprovisions of
Article 24,paragraph 1),either theresident ornon-resident designated intheitemshallgiveaprior
notice, asaCabinet Order provides for,totheMinister ofFinance ofthose matters asdesignated by
theCabinet Order suchascontents ofthecapital transaction, timeofexecution thereof, andothers.
However, thisrequirement shallnotapply toaperson whoistobecome apartytoanycapital transaction
mentioned inItem(2),(3)and(7),ofwhich another party isoneofthesecurities companies designated
bytheMinister ofFinance (thesecurities companies defined byArticle 2,paragraph 9oftheSecurities
Company Law, ortheforeign securities dealers defined byArticle 2,Item2oftheLawconcerning
Foreign Securities Dealers -LawNo.5of1971-bothofwhich arereferred toas"designated securities
companies" inthisparagraph), orforwhich oneofthedesignated securities companies actsasan
intermediary, broker, oragent:
(1) Among thecapital transaction mentioned inArticle 20,Item(2),those transactions
involvingaclaimablerightcreation,etc.,underamoneylendingandborrowingcontract
(except forthose falling under Item(4)),orthose transactions involving aclaimable
rightcreation, etc.,under aguarantee contract covering liabilities ofthose juridical
persons established under foreign legislation asdesignated byaCabinet Order (referred
toas"foreigncorporation"inthisItem)arisingoutofthatforeigncorporation'sissuance
oroffer forsubscription ofsecurities inaforeign country --bytheresident;G/SG/N/1/JPN/2
Page11
(2) among thecapital transactions mentioned inArticle 20,Item(5),acquisition ofany
foreign securities byaresident from anon-resident (excepting those falling under
Item(4))--bytheresident;
(3) among thecapital transactions mentioned inArticle 20,Items (5),acquisition ofany
securities byanon-resident -bythenon-resident;
(4) among thecapital transactions mentioned inArticle 20,Items (2),(5)and(11),those
concerning adirect foreign investment byaresident -bytheresident;
(5) among thecapital transactions mentioned inArticle 20,Item(6),issuance orofferfor
subscription ofanysecurities inaforeign country, orissuance orofferforsubscription
ofanyforeign securities inJapan, byaresident -bytheresident;
(6) among thecapital transactions mentioned inArticle 20,Item(6),issuance orofferfor
subscription ofanysecurities inJapan byanon-resident -bythenon-resident;
(7) thecapital transactions mentioned inItem(8)ofArticle 20hereof (butexcluding those
relating tothefutures contract onfinancial indicators, etc.relating tothe
currency-related financial indicators) -bytheresident; or
(8) among thecapital transactions mentioned inArticle 20,Item(10),acquisition ofany
immoveables orrights related thereto existing inJapan byanon-resident -bythe
non-resident.
2. "SpecialInternationalFinanceTransactionAccount"mentionedintheperviousparagraphmeans
accounting tobelaiddown byauthorized foreign exchange bankinJapan under theapproval ofthe
Minister ofFinance inorder todiscriminate accounting related tooperation orrasing offunds concerned
withtransactions oractions mentioned ineachofthefollowing items which areeffected inorder to
apply deposit received fromexchange non-resident (limited tojuridical person established under foreign
lawsandorders orparties which areestablished byaCabinet Order. Hereinafter thesameinthisArticle)
andother funds raised fromnon-resident tomoney lending tonon-resident andother operation offunds
tonon-resident,fromaccountingrelatedtooperationorraisingoffundsconcernedwithothertransactions
oractions.
(1) Among capital transactions mentioned inArticle 20,Item(1),transactions related to
theoccurrence, etc.,ofcredit, based ondeposit contract withexchange non-resident,
andfurther, which areprescribed byaCabinet Order.
(2) Among capital transactions mentioned inArticle 20,Item(2),transactions related to
theoccurrence, etc., ofcredit, which arebased onmonetary loancontract with
non-resident.
(3) Inaddition, transactions oractions prescribed byaCabinet Order.
3. The"direct foreign investment" mentioned inparagraph 1,Item(4)shallmean acquisition
ofanysecurities issued byajuridical person established under foreign legislation, oranymoney lending
tosuchajuridical person, designated byaCabinet Order asanactpurporting toestablish along-term
economic relationship therewith, oranypayment offunds forestablishment orexpansion ofabranch,
factory, orother place ofbusiness (hereinafter referred toas"branch", etc.)inaforeign country, by
aresident.G/SG/N/1/JPN/2
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4. With regard totransfer offunds between Special International Finance Transaction Account
prescribed inparagraph 2(hereinafter referred toas"Special International Finance Transaction Account"
inthisparagraph) andother account, other accounting ofSpecial International Finance Transaction
Account andtransactions oractions which areaccounted inSpecial International Finance Transaction
Account; confirmation thatthecounter party ofthetransactions oractions concerned isanon-resident
andother necessary matters, shallbeprovided byaCabinet Order.
5. Thenecessary matters concerning thedesignation bytheMinister ofFinance mentioned in
theproviso ofparagraph 1shallbeprovided byaCabinet Order.
6. When anobligation toobtain alicence from theMinister ofFinance isimposed under the
provisions ofparagraph 2ofthepreceding Article, theprovisions ofparagraph 1andthenextArticle
shallnotapply, irrespective oftheprovisions ofparagraph 1,toanycapital transaction mentioned in
eachitemofthesame paragraph upon which theabove-mentioned obligation isimposed.
(Screening oftheconditions ofcapital transactions, andrecommendation ofalteration thereof, etc.)
Article 23.Anyresident ornon-resident whohasgiven anotice under theprovisions of
paragraph 1ofthepreceding Article, concerning thecapital transactions mentioned inItem(1)thereof
(excluding thetransactions involving aclaimable rightcreation, etc.,under amoney borrowing contract
byaresident from anon-resident), orthose mentioned inItems (4)through (6)and(8)thereof (with
regard tocapital transaction mentioned inthesaiditem, itislimited tothose, which areprescribed
byMinister ofFinance among acquisitions oflandinJapan orrightconcerned withit,which obtained
byexchange non-resident), shallnotexecute thatcapital transaction under notice untilaperiod of
twenty (20)dayshaselapsed, counting fromthedayofreceipt ofthenotice bytheMinister ofFinance.
However, theMinister ofFinance mayshorten thisperiod when hedeems itnotspecifically harmful,
judging from theparticulars, etc.,ofthecapital transaction under notice.
2. Only insuchanevent aswhen theMinister ofFinance deems thatifanycapital transaction
covered bythenotice given inthepreceding paragraph were executed itmight result inoneofthe
below-mentioned consequences andtheachievement oftheobjective ofthisLawmight become difficult,
hemayrecommend, asaCabinet Order provides for,theperson whogavethenotice either toalter
theparticulars ofthatcapital transaction ortosuspend theexecution thereof, provided thatsuch
recommendation isgiven within aperiod oftwenty (20)days, counting from thedayofhisreceipt
ofthenotice:
(1) Itmight adversely affect theinternational money market orderogate from the
international reputation ofourcountry;
(2) itmight adversely affect ourmoney orcapital market;
(3) itmight adversely affect thebusiness activities ofacertain sector ofourindustries
orthesmooth performance ofournational economy; or
(4) itmight disturb thefaithful performance oftreaties orother international agreements
concluded byourcountry, orimperil theinternational peace andsecurity, ordisturb
themaintenance ofpublic order.
3. Theperson whoisgiven recommendation under theprovisions ofthepreceding paragraph
shallnot,irrespective oftheprovisions ofparagraph 1execute thecapital transaction covered bythe
notice given inthesame paragraph untilaperiod oftwenty (20)dayshaselapsed, counting from the
dayofhisreceipt oftherecommendation.G/SG/N/1/JPN/2
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4. Theperson whoisgiven recommendation under theprovisions ofparagraph 2shallinform
theMinister ofFinance whether heaccedes toitornotwithin aperiod often(10)days, counting from
thedayofhisreceipt oftherecommendation.
5. Theperson whohasinformed hisaccession torecommendation under theprovisions ofthe
preceding paragraph shallexecute thecapital transaction concerning therecommendation inaccordance
therewith.
6. Theperson whohasinformed hisaccession torecommendation under theprovisions of
paragraph 4mayexecute thecapital transaction concerning therecommendation, before aperiod of
twenty (20)dayshaselapsed, counting fromthedayofhisreceipt oftherecommendation, irrespective
oftheprovisions ofparagraph 1orparagraph 3.
7. When theperson whohasbeengiven recommendation under theprovisions ofparagraph 2
either failstoinform orinforms hisnon-accession thereto, under theprovisions ofparagraph 4,the
Minister ofFinance maydirect himtoaltertheconditions oftherelevant capital transaction ortosuspend
theexecution thereof, provided thatsuchadirective isserved within aperiod oftwenty (20)days,
counting from thedayofhisgiving therecommendation under theprovisions ofparagraph 2.
8. Inaddition tothose provided ineachofthepreceding paragraphs, aCabinet Order shallprovide
fortheprocedures oftherecommendation toaltertheconditions ofthecapital transaction ortosuspend
theexecution thereof, andother necessary matters concerning therecommendation.
(Capital transactions, etc.,requiring licence from theMinister ofInternational Trade andIndustry)
Article 24.Only insuchanevent aswhen theMinister ofInternational Trade andIndustry
deems that,among thecapital transactions mentioned inArticle 20,Item(2)(including those designated
byaCabinet Order under theprovisions ofItem(12)ofthesame Article asbeing similar tothose
transactions defined byItem(2)thereof), ifanytransaction oractofanexporter orimporter ofgoods
which isdesignated byaCabinet Order asbeing directly related toexport orimport, oranytransaction
oractdesignated byaCabinet Order asbeing thatfortransfer ofarightofmining, industrial property
rights, orother similar rights, orforcreation ofaright tousesuchrights (except forthose capital
transactions designated byaCabinet Order asintending tosettle short-term international commercial
transactions) wereallowed without anyrestriction itmight result inoneoftheconsequences mentioned
ineachItemofArticle 21,paragraph 2,andtheachievement oftheobjective ofthisLawmight become
difficult, hemayobligate, asaCabinet Order provides for,anyresident whoistocarry outsucha
capital transaction toobtain alicence therefor.
2. Unless aCabinet Order otherwise provides for,anyresident whoistobecome aparty toany
capital transaction mentioned inthepreceding paragraph shallgiveaprior notice, asaCabinet Order
provides for,totheMinister ofInternational Trade andIndustry ofthose matters asdesignated bythe
Cabinet Order suchasparticulars ofthecapital transaction, timeofexecution thereof, andother.
3. Anyresident whohasgiven anotice under theprovisions ofthepreceding paragraph concerning
thecapital transactions mentioned inparagraph 1(excluding those designated byaCabinet Order as
being related toamoney borrowing contract byaresident fromanon-resident) shallnotexecute that
capital transaction under notice untilaperiod oftwenty (20)dayshaselapsed, counting fromtheday
ofreceipt ofthenotice bytheMinister ofInternational Trade andIndustry. However, theMinister
ofInternational Trade andIndustry mayshorten thisperiod when hedeems itnotspecifically harmful,
judging from theparticulars, etc.,ofthecapital transaction under notice.G/SG/N/1/JPN/2
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4. Theprovisions ofItems (2)through (8)ofthepreceding Article shallapply mutatis mutandis
tothecapital transactions mentioned inthepreceding paragraph, andaCabinet Order shallprovide
forthetechnicalities ofsuchmutatis mutandis application.
5. When imposing anobligation toobtain alicence under theprovisions ofparagraph 1upon
thecapital transactions defined byparagraph 3(except forthose forwhich anotice hasalready been
given under theprovisions ofparagraph 2),theMinister ofInternational Trade andIndustry shalldo
so,alsoconsidering whether, ifsuchcapital transactions wereexecuted, anyoneoftheconsequences
mentioned ineachItemofparagraph 2ofthepreceding Article, ofwhich mutatis mutandis application
isprovided bythepreceding paragraph, might ensue therefrom, inaddition tothose mentioned ineach
ItemofArticle 21,paragraph 2,thusresulting inadifficulty forachieving theobjective ofthisLaw.
6. When anobligation toobtain alicence fromtheMinister ofInternational Trade andIndustry
isimposed under theprovisions ofparagraph 1,theprovisions ofparagraph 2through paragraph 4
shallnotapply, irrespective oftheprovisions ofparagraph 2,toanycapital transaction mentioned in
paragraph 1upon which theabove-mentioned obligation isimposed.
(Service transactions, etc.)
Article 25.Anyresident whoistomake anytransaction falling under thefollowing items
withanon-resident shallobtain alicence therefor fromtheMinister ofInternational Trade andIndustry,
asaCabinet Order provides for:
(1) Transactions ofwhich theobjective istooffer technology concerned withdesign,
manufacture, orutilization ofspecific kinds ofgoods designated byaCabinet Order
asthose considered tobeobstructive tothemaintenance ofinternational peace and
security (hereinafter referred toas"specific technology") inaspecified area;
(2) transactions concerning sales andpurchase ofgoods involving movement ofgoods
between foreign countries designated byaCabinet Order asthose considered tobe
obstructive tothemaintenance ofinternational peace andsecurity.
2. When theMinister ofInternational Trade andIndustry deems itnecessary fortheeffective
enforcement oftheprovisions ofthepreceding paragraph, hemayobligate, asaCabinet Order provides
for,anyresident whoistocarry outtransactions ofwhich theobjective istoofferspecific technology
intheareaother thanthespecified areaofItem(1)ofthesame paragraph withanon-resident toobtain
alicence therefor.
3. Anyresident whoistomake anytransaction designated byaCabinet Order asfalling under
anyoneofthefollowing items (except forthose falling under theconclusion, etc.,ofagreement for
importation oftechnology asdefined byArticle 29,paragraph 1)withanon-resident shallobtain a
licence therefor from thecompetent Minister, asaCabinet Order provides for:
(1) Service transactions (thatmean transactions ofwhich theobjective istorender labour
orservice, andthesameshallapply tothenextitem) forprocessing ofmineral products,
transfer ofmining right, orsimilar ones; or
(2) service transactions, ortransactions concerning salesandpurchase involving movement
ofgoods between foreign countries, which areconsidered toobstructive tothefaithful
performance oftreaties orother international agreements concluded byourcountry.G/SG/N/1/JPN/2
Page15
(Sanctions)
Article 25-2. TheMinister ofInternational Trade andIndustry mayprohibit anyperson who
hascarried outtransactions mentioned inItem(1)ofparagraph 1ofthepreceding Article without
obtaining alicence under theprovisions ofthesame paragraph inregard tocarrying outtransactions
ofwhich theobjective istooffer technology concerned withdesign, manufacture, orutilization of
goods withanon-resident, orexporting specific kinds ofgoods concerning specific technology, for
aperiod notexceeding three years.
2. TheMinister ofInternational Trade andIndustry mayprohibit anyperson whohascarried
outtransactions mentioned inItem(2)ofparagraph 1ofthepreceding Article without obtaining alicence
under theprovisions ofthesame paragraph inregard tocarrying outtransactions concerning sales
andpurchase ofgoods involving movement ofgoods between foreign countries withanon-resident,
orexporting ofgoods, foraperiod notexceeding three years.
3. TheMinister ofInternational Trade andIndustry mayprohibit anyperson, when anobligation
toobtain alicence from theMinister ofInternational Trade andIndustry under theprovisions of
paragraph 2ofthepreceding Article isimposed, whohascarried outtransactions mentioned inthe
sameparagraph without obtaining thelicence concerned inregard tocarrying outtransactions ofwhich
theobjective istooffertechnology concerned withdesign, manufacture, orutilization ofgoods with
anon-resident, orexporting specific kinds ofgoods concerning specific technology, foraperiod not
exceeding oneyear.
CHAPTER V
Direct Domestic Investments, etc.
(Report ondirect domestic investments, etc.)
Article 26.A"foreign investor" shallmean anyoneofthose mentioned below, which performs
anyoneofthedirect domestic investments, etc.,mentioned ineachItemofthenextparagraph:
(1) Anatural person whoisanon-resident;
(2) ajuridical person oranother organization established under foreign legislation, ora
juridical person orother organization having itsmain office inaforeign country;
(3) acompany ofwhich thenumber ofstock ortheamount ofcapital subscription directly
owned byoneormoreofthose mentioned inItem(1)and/or thepreceding item, and/or
thenumber ofstock ortheamount ofcapital subscription designated byaCabinet Order
asbeing indirectly owned bytheabove-mentioned through another company orother
companies equal(s) orexceed(s) intheaggregate one-half (½)ofthatcompany 'stotal
stock issue ortotalsubscribed capital; or
(4) other thanthose mentioned inthepreceding twoitems, ajuridical person orother
organization ofwhich amajority number ofboard members (which mean directors
andother similar posts, which shall apply inthisItem) orboard members having
representing power isoccupied bypersons mentioned inItem(1).
2. A"direct domestic investment, etc."shallmean anactwhich fallsunder anyitembelow:G/SG/N/1/JPN/2
Page16
(1) Acquisition ofanycompany 'sstock orshare (except fortheacquisition bytransfer
fromanyonementioned ineachitemofthepreceding paragraph andtheacquisition
ofthestock ofcompanies which islisted onthestock exchange defined byArticle 2,
paragraph 11oftheSecurities andExchange Law, orthestock ofcompanies which
isdesignated byaCabinet Order asbeing similar totheaforementioned listed one-
collectively referred toas"listed companies, etc."inthenextItemandItem(3)-);
(2) transfer ofstock orshare(s) ofanycompany otherthanthelisted companies, etc.,which
was/were acquired bythetransferrer priortohisacquisition ofnon-resident status and
has/have beencontinuously heldbyhimuptillthetimeofthetransfer (limited toonly
suchtransfer asmade byanon-resident natural person toanyonementioned ineach
itemofthepreceding paragraph);
(3) acquisition ofstock ofanyoneofthelisted companies, etc.(limited tothecase,where
theratioofnumber ofacquired stock against thetotalnumber ofstock issued bythe
concerned company, etc.orthecasewhere theratioofnumber ofacquired stock, plus
other number ofthestock which became tobeacquired additionally lateronbyhim
andfurthermore plusadditional stock owned byanyindividual, whoisanexchange
non-resident, juridical person orother body (limited tothose correspond toanyone
mentioned inItems (2)through (4)), whoareinlasting economical relation in
proprietary right, etc.ofstocks, inrelative relation andinother special relation
corresponding tothose withtheperson, whomade theacquisition concerned as
prescribed byCabinet Order, incomparison withthetotalnumber ofissued stocks
oftheconcerned listed company, etc.equals orexceeds aratioprovided byCabinet
Order, which shallnotbelessthan10percent);
(4) consent given toasubstantial alteration oftheobjective ofacompany 'sbusiness (limited
toonlysuchconsent asgiven byoneormore stockholder(s) orshareholder(s) who
own(s) intotalone-third ()ormore ofthatcompany 'stotalstock issue ortotal
subscribed capital);
(5) establishment ofabranch, etc.,inJapan, orsubstantial alteration ofthetypeorthe
business objective ofabranch, etc.,existing inJapan (limited toonlysuchestablishment
andalteration asdesignated byaCabinet Order, which istobemade byanyoneof
those mentioned inItem(1)or(2)ofthepreceding paragraph);
(6) money lending toajuridical person having itsmain office inJapan inexcess ofan
amount determined byaCabinet Order (except forthose lendings made asabusiness
byabankorother financial institution designated byaCabinet Order, andlendings
inourcurrency made byanyoneofthose mentioned inItem(3)or(4)ofthepreceding
paragraph), ofwhich thetermexceeds oneyear; or
(7) anyother actdesignated byaCabinet Order asbeing similar toanyoneofthose
mentioned ineachofthepreceding items.
3. Anyforeign investor whohasmade adirect domestic investment, etc.,mentioned ineachitem
ofthepreceding paragraph (except forthose cases determined byaCabinet Order, inconsideration
ofsuchinstances asinheritance, legacy, amalgamation ofjuridical persons, etc.thisexception shall
apply tothisArticle through Article 27-2) shallsubmit areport, asaCabinet Order provides for,to
theMinister ofFinance andtheMinister(s) incharge oftheindustry involved concerning thatdirect
domesticinvestment,etc.However,thisrequirementshallnotapplytothosedirectdomesticinvestments,G/SG/N/1/JPN/2
Page17
etc.,concerning which anotice shallbegiven under theprovisions ofparagraph 1ofthefollowing
Article.
(Notice ofdirect domestic investments, etc.,andrecommendation ofalteration thereof, etc.)
Article 27.Anyforeign investor whoistomake adirect domestic investment, etc.,mentioned
ineachitemofparagraph 2ofthepreceding Article, which isoneofthose designated byaCabinet
Order ascausing apprehensions tofallunder adirect domestic investment, etc.,concerning which an
inquiry isnecessary under theprovisions ofparagraph 3,shallgiveaprior notice, asaCabinet Order
provides for,totheMinister ofFinance andtheMinister(s) incharge oftheindustry involved ofthose
matters asdesignated bytheCabinet Order suchastheobjective ofbusiness, amount, timeofexecution,
andothers concerning thatdirect domestic investment, etc.
2. Anyforeign investor whohasgiven anotice under theprovisions ofpreceding paragraph
concerning adirect domestic investment, etc.shallnotexecute thatdirect domestic investment, etc.,
untilaperiod ofthirty (30)dayshaselapsed, counting from thedayofreceipt ofthenotice tothe
Minister ofFinance andtheMinister(s) incharge oftheindustry involved. However, theMinisters
mayshorten thisperiod when theydetermine, before thisperiod expires andjudging fromitsobjectives,
thatdirect domestic investment, etc.,under notice doesnotfallunder suchdirect domestic investments,
etc.,concerning which aninquiry isnecessary under theprovisions ofthefollowing paragraph.
3. When anotice isgiven totheMinister ofFinance andtheMinister(s) incharge oftheindustry
involved under theprovisions ofparagraph 1,andtheMinisters deem itnecessary tomake aninquiry
whether thedirect domestic investment, etc.under notice fallsunder anyoneofthefollowing direct
domestic investment, etc.,(collectively referred toasa"direct domestic investment, etc.related to
thenational security, etc.," inthenextparagraph, paragraph 5andparagraph 11),theymayextend
theperiod during which theexecution ofthatdirect domestic investment, etc.,under notice isprohibited
uptofour(4)months, counting from thedayoftheirreceipt ofthenotice:
(1) Direct domestic investment, etc.,which causes apprehensions astheoccurrence of
consequences mentioned ineither (a)or(b)below (limited tothose direct domestic
investments, etc.,executed byforeign investor whose country isparticipating in
multilateral treaties orother international agreements ondirect domestic investments,
etc.,thataredesignated byaCabinet Order andinwhich ourcountry isparticipating
(hereinafter referred toas"treaties, etc.,intheitem) andelimination ofrestriction
onwhich isnotundertaken andthetreaties, etc., andtothose direct domestic
investments, etc.,executed byaforeign investor whose country isnotparticipating
inthetreaties, etc.,and,ifthecountry wereaparticipant inthetreaties, etc.,elimination
ofrestriction onwhich would notbeundertaken under thetreaties, etc.);
(a) Itmight imperil thenational security, disturb themaintenance ofpublic order,
orhamper theprotection ofthegeneral public;
(b) itmight adversely andseriously affect activities ofoureconomy.
(2) direct domestic investment, etc.,whose particulars arerequired tobealtered orwhose
execution isrequired tobesuspended, soastomake itsconditions substantially equal
tothose allowed toournational 'sdirect investment activities (which mean those
tantamount todirect domestic investment, etc.,mentioned ineachitemofparagraph
2ofthepreceding article) inthatcountry, because thedirect domestic investment, etc.,
isexecuted byaforeign investor withwhose country notreaties orother international
agreements ondirect domestic investment, etc.,areconcluded byourcountry; orG/SG/N/1/JPN/2
Page18
(3) direct domestic investment, etc.,whose particulars arerequired tobealtered orwhose
execution isrequired tobesuspended, because, judging from theuseoffunds and
others, itfallsunder, inwhole orinpart, thecapital transactions upon which an
obligationtoobtainalicenceisimposedundertheprovisionsofArticle21,paragraph2.
4. When theMinister ofFinance andtheMinister(s) incharge oftheindustry involved have,
under theprovisions ofthepreceding paragraph, extended theperiod during which theexecution of
adirectdomesticinvestment,etc.,isprohibited,and,beforetheextendedperiodexpires,theydetermine,
onmaking aninquiry under theprovisions ofthesame paragraph, thatthedirect domestic investment,
etc.,under notice under theprovisions ofparagraph 1doesnotfallunder adirect domestic investment,
etc.,related tothenational security, etc.,theymayshorten theextended period.
5. When theMinister ofFinance andtheMinister(s) incharge oftheindustry involved have,
under theprovisions ofparagraph 3,extended theperiod during which theexecution ofadirect domestic
investment, etc.,isprohibited, andtheydetermine, onmaking aninquiry under theprovisions ofthe
same paragraph, thatthedirect domestic investment, etc.,under notice under theprovisions of
paragraph 1fallsunder adirect domestic investment, etc.,related tothenational security, etc.,they
may, upon hearing theopinion oftheCommittee onForeign Exchange andOther Transactions,
recommend theparty which gave thatnotice asaCabinet Order provides for,either toalterthe
particulars ofthatdirect domestic investment, etc.,ortosuspend theexecution thereof provided,
however, thatsuchrecommendation istobegiven withtheextended period provided byparagraph 3
orthenextparagraph, continues from thedayoftheirreceipt ofthenotice.
6. When theCommittee onForeign Exchange andOther Transactions isasked foritsopinion
under theprovisions ofthepreceding paragraph, andtheCommittee tenders itsintimation thattoform
itsopinion within theperiod offour(4)months asprovided inparagraph 3isdifficult duetothenature
ofthesubject matter, theperiod provided inthesame paragraph during which theexecution ofthe
directdomesticinvestment,etc.,isprohibitedshallbecomefive(5)months,irrespectiveoftheprovisions
ofthesame paragraph.
7. Theparty whoisgiven recommendation under theprovisions ofparagraph 5shallinform the
Minister ofFinance andtheMinister(s) incharge oftheindustry involved whether itaccedes tothe
recommendation ornotwithin aperiod often(10)days, counting from thedayofitsreceipt ofthe
recommendation.
8. Theparty which hasinformed itsaccession totherecommendation under theprovisions of
thepreceding paragraph shall execute thedirect domestic investment, etc., concerning the
recommendation inaccordance therewith.
9. Theparty which hasinformed itsaccession totherecommendation under theprovisions of
paragraph 7mayexecute thedirect domestic investment, etc.,concerning therecommendation, before
aperiod offour(4)months (orfive(5)months when theperiod isextended under theprovisions of
paragraph 6)haselapsed, counting from thedaywhen hegavethenotice thereof, irrespective ofthe
provisions ofparagraph 3orparagraph 6.
10. When theparty which hasbeengiven recommendation under theprovisions ofparagraph 5
either failstoinform orinforms itsnon-accession thereto under theprovisions ofparagraph 7,the
Minister ofFinance andtheMinister(s) incharge oftheindustry involved maydirect ittoalterthe
particulars oftherelevant direct domestic investment, etc.,ortosuspend theexecution thereof, provided
thatsuchadirective isserved within theperiod provided inparagraph 3ortheextended period provided
inparagraph 6,counting from thedayoftheirreceipt ofthenotice thereof.G/SG/N/1/JPN/2
Page19
11. When theMinister ofFinance andtheMinister(s) incharge oftheindustry involved deem
that,duetothechange ofeconomic situations oranyother reason, thedirect domestic investment,
etc.,notified under theprovisions ofparagraph 1ceases tobeconsidered asfalling under adirect
domestic investment, etc.,related tothenational security, etc.,theymaywithdraw, inwhole orin
part,theirrecommendation toaltertheparticulars ofthesaiddirect domestic investment, etc.,given
tothepartywhohasinformed itsaccession thereto under theprovisions ofparagraph 7,ortheirdirective
toaltersuchparticulars served under theprovisions ofthepreceding paragraph.
12. Inaddition tothose provided inparagraph 5through thepreceding paragraph, aCabinet Order
shallprovide fortheprocedures oftherecommendation toaltertheparticulars ofthedirect domestic
investment, etc.,ortosuspend theexecution thereof, andother necessary matters concerning the
recommendation.
(Aperson whoshallbedeemed asaforeign investor)
Article 27-2. Anyperson other thanaforeign investor (including ajuridical person orother
organization, which shallalsoapply tothisArticle) whoperforms anytransaction oracttantamount
toadirect domestic investment, etc.,onbehalf ofaforeign investor butnotinthelatter'sname shall
bedeemed asaforeign investor, andtheprovisions ofthepreceding twoArticles shallapply tosuch
aperson.
(Transfer ofpre-emptive rights)
Article 28.Anyoneofthose mentioned inArticle 26,paragraph 1,Item(1)or(2),which
isastockholder ofacompany andacquires apre-emptive rightaccruing from itsstockholding may
transfer sucharighttoanother party.
2. Unless option warrants areissued, anyonewhich makes thetransfer mentioned inthepreceding
paragraph cannot contest against thecompany orotherthirdpartywithout thecompany 'swritten consent
thereto.
(Report onconclusion, etc.,ofagreements forimportation oftechnology)
Article 29.Anyresident whohasentered intoanagreement withanon-resident (including
anybranch, etc.,inJapan ofthenon-resident, which shallapply tothisArticle andthefollowing Article)
fortransfer ofthenon-resident 'sindustrial property rights orother rights concerning technology, or
forestablishment ofarighttotheuseofthesame, orforrendering technical guidance inmanagerial
know-how bythenon-resident, including renewal oramendment ofsuchanagreement (hereinafter
referred toas"conclusion, etc.,ofagreement forimportation oftechnology") shallsubmit areport,
asaCabinet Order provides for,totheMinister ofFinance andtheMinister(s) incharge oftheindustry
involved concerning thatconclusion, etc.,ofagreement forimportation oftechnology. However, this
requirement shallnotapply tothose conclusions, etc.,ofagreement forimportation oftechnology
concerning which anotice shallbegiven under theprovisions ofparagraph 1ofthefollowing Article.
(Noticeofconclusion,etc.,ofagreementforimportationoftechnologyandrecommendationofalteration
thereof, etc.)
Article 30.Anyresident whoistoenterintoaconclusion, etc.,ofagreements forimportation
oftechnology withanon-resident, which isoneofthose designated byaCabinet Order ascausing
apprehensions tofallunder conclusion, etc.,ofagreements forimportation oftechnology concerning
which aninquiry isnecessary under theprovisions ofparagraph 3,shallgiveapriornotice, asaCabinet
Order provides for,totheMinister ofFinance andtheMinister(s) incharge oftheindustry involvedG/SG/N/1/JPN/2
Page20
ofthose matters asdesignated bytheCabinet Order suchastheprovisions oftheagreement concerning
theconclusion, etc.,ofagreement forimportation oftechnology.
2. Anyresident whohasgiven anotice under theprovisions ofthepreceding paragraph concerning
conclusion, etc.,ofagreement forimportation oftechnology shallnotenterintothatconclusion, etc.,
ofagreement forimportation oftechnology untilaperiod ofthirty (30)dayshaselapsed, counting
from thedayofreceipt ofthenotice bytheMinister ofFinance andtheMinister(s) incharge ofthe
industry involved. However, theMinisters mayshorten thisperiod when theydetermine, before this
period expires andjudging fromthetypeoftechnology andother conditions, thattheconclusion, etc.,
ofagreement forimportation oftechnology under notice doesnotfallunder suchconclusion, etc.,
ofagreementforimportationoftechnologyconcerningwhichaninquiryisnecessaryundertheprovisions
ofthefollowing paragraph.
3. When anotice isgiven totheMinister ofFinance andtheMinister(s) incharge oftheindustry
involved under theprovisions ofparagraph 1,andtheMinisters deem itnecessary tomake aninquiry
whether theconclusion, etc.,ofagreement forimportation oftechnology under notice fallsunder the
conclusion, etc.ofagreement forimportation oftechnology which causes apprehensions astothe
occurrenceofanyoneofconsequencesmentionedbelow(limitedtothoseconclusions,etc.,ofagreement
forimportation oftechnology entered intowithanon-resident whose country isparticipating in
multilateral treaties orother international agreements onconclusion, etc.,ofagreement forimportation
oftechnology thataredesignated byaCabinet Order andinwhich ourcountry isparticipating
(hereinafter referred toas"treaties, etc.," inthisparagraph) andelimination ofrestriction onwhich
isnotundertaken under thetreaties, etc.,andtothose conclusions, etc.,ofagreement forimportation
oftechnology entered intowithanon-resident whose country isnotparticipating inthetreaties, etc.,
and,ifthecountry wereaparticipant inthetreaties, etc.,elimination ofrestriction onwhich would
notbeundertaken under thetreaties, etc.Collectively referred toas"conclusion, etc.,ofagreement
forimportation oftechnology related tothenational security, etc." inthenextparagraph and
paragraph5,)theymayextendtheperiodduringwhichtheconclusion,etc.,ofagreementforimportation
oftechnology under notice isprohibited uptofour(4)months, counting fromthedayoftheirreceipt
ofthenotice:
(1) Itmightimperilthenationalsecurity,disturbthemaintenanceofpublicorder,orhamper
theprotection ofthegeneral public;
(2) itmight adversely andseriously affect activities ofoureconomy.
4. When theMinister ofFinance andtheMinister(s) incharge oftheindustry involved have,
under theprovisions ofthepreceding paragraph, extended theperiod during which theconclusion,
etc.,ofagreement forimportation oftechnology isprohibited, and,before theextended period expires,
theydetermine, onmaking aninquiry under theprovisions ofthesameparagraph, thattheconclusion,
etc.,ofagreement forimportation oftechnology under notice under theprovision ofparagraph 1does
notfallunderconclusion,etc.,ofagreementforimportationoftechnologyrelatedtothenationalsecurity,
etc.,theymayshorten theextended period.
5. When theMinister ofFinance andtheMinister(s) incharge oftheindustry involved have,
under theprovisions ofparagraph 3,extended theperiod during which theconclusion, etc.,ofagreement
forimportation oftechnology isprohibited, andtheydetermine, onmaking aninquiry under the
provisions ofthesameparagraph, thattheconclusion, etc.,ofagreement forimportation oftechnology
under notice under theprovisions ofparagraph 1fallsunder conclusion, etc.,ofagreement for
importation oftechnology related tothenational security, etc.,theymay, upon hearing theopinion
oftheCommittee onForeign Exchange andOther Transactions, recommend theperson whogavethat
notice, asaCabinet Order provides for,either toaltertheparticulars oftheconclusion, etc.,onG/SG/N/1/JPN/2
Page21
agreement forimportation oftechnology, inwhole orinpart,ortosuspend theexecution thereof,
provided, however, thatsuchrecommendation istobegiven within theextended period provided by
paragraph ..orthenextparagraph, counting from thedayoftheirreceipt ofthenotice.
6. When theCommittee onForeign Exchange andOther Transactions isasked foritsopinion
under theprovisions ofthepreceding paragraph, andtheCommittee tenders itsintimation thattoform
itsopinion within theperiod offour(4)months asprovided byparagraph 3isdifficult duetothenature
ofthesubject matter, theperiod provided inthesame paragraph during which theconclusion, etc.,
ofagreement forimportation oftechnology isprohibited shallbecome five(5)months, irrespective
oftheprovisions ofthesame paragraph.
7. Whenrecommendationisgivenundertheprovisionsofparagraph5,theprovisionsofArticle27,
paragraph 7through paragraph 12shallbeapplicable thereto mutatis mutandis ,andaCabinet Order
shallprovide forthetechnicalities ofsuchmutatis mutandis application.
(Exempted application from thepreceding twoArticles)
Article 31.Theprovisions ofthepreceding twoArticles shallnotapply totheconclusion,
etc.,ofagreement forimportation oftechnology which isdeveloped independently byabranch, etc.,
inJapan ofanon-resident, ortoother conclusion, etc.,ofagreement forimportation oftechnology
determined byaCabinet Order.
Article 32through Article 46.Deleted.
CHAPTER VI
Foreign Trade
(Principle forexport)
Article 47.Export ofgoods shallbepermitted withaminimum ofrestrictions, insofar asit
isconsistent withtheobjective ofthisLaw.
(Licence forexport, etc.)
Article 48.Aperson whoistoexport specific kinds ofgoods toaspecified destination
designated byaCabinet Order asthose considered tobeobstructive tothemaintenance ofinternational
peace andsecurity shallobtain alicence from theMinister ofInternational Trade andIndustry, asa
Cabinet Order provides for.
2. When theMinister ofInternational Trade andIndustry deems itnecessary fortheeffective
enforcement oftheprovisions ofthepreceding paragraph, hemayobligate, asaCabinet Order provides
for,anyperson whoistoexport specific kinds ofgoods ofthesame paragraph toadestination other
thanthespecified destination ofthesame paragraph toobtain alicence therefor.
3. Inaddition tothose provided ineach ofthepreceding twoparagraphs, theMinister of
International Trade andIndustry mayobligate, asaCabinet Order provides for,anyperson whois
toexport specific kinds ofgoods ortoaspecified destination, orunder aspecific wayoftransaction
orsettlement toobtain anapproval, within thelimits ofnecessity forthemaintenance ofthebalanced
balance ofpayments andforthesound development offoreign trade andnational economy.G/SG/N/1/JPN/2
Page22
(Attestation forsettlement ofexport proceeds)
Article 49.TheMinister ofInternational Trade andIndustry maydemand, asanOrder provides
for,anyperson whoistoexport goods toproduce sufficient attestation thattheproceeds thereof are
tobesettled bymethods designated byaCabinet Order.
Article 50.Deleted.
(Embargo incaseofemergency)
Article 51.When theMinister ofInternational Trade andIndustry deems urgently necessary,
hemay, asanOrder provides for,place anembargo specifying thetypeordestination ofgoods for
aperiod notexceeding one(1)month.
(Approval forimport)
Article 52.Forthepurpose ofsound development offoreign tradeandthenational economy,
aperson whoistoimport goods might beobligated, asCabinet Order provides for,toobtain approval
therefor.
(Sanction)
Article 53.TheMinister ofInternational Trade andIndustry mayprohibit aperson whohas
exported goods mentioned inparagraph 1ofArticle ..without obtaining alicence under theprovisions
ofthesame paragraph withregard toexporting orcarrying outtransactions whose objective istooffer
specific technology withanon-resident, foraperiod notexceeding three years.
2. TheMinister ofInternational Trade andIndustry mayprohibit anyperson (excluding those
prescribed inthepreceding paragraph) whohascontravened thisLaw, anyOrder enacted thereunder,
oranydisposition made thereunder inregard toexporting orimporting goods fromcarrying outexport
orimport transactions foraperiod notexceeding one(1)year.
(Supervision overthesuperintendents ofcustomhouses)
Article 54.TheMinister ofInternational Trade andIndustry shall, asaCabinet Order provides
for,control andsupervise thesuperintendents ofcustomhouses inregard totheexport andimport of
those goods which fallunder thisjurisdiction.
2. TheMinister ofInternational Trade andIndustry may,asaCabinet Order provides for,delegate
tothesuperintendents ofcustomhouses apartofhispower conferred bythisLaw.
(Warranty forexecution ofimport transactions)
Article 55.Aperson whoistoimport goods might beobligated, asaCabinet Order provides
for,tosubmit awarranty intheform ofcash, securities, etc.,fortheexpansion ofhisimportation.
2. Ifaperson whohasobtained approval forimport failstocarry outtheimportation, thewarranty
submittedbyhimundertheprecedingparagraphmaybeforeclosedanddevolvedonthenationaltreasury,
asaCabinet Order provides for.G/SG/N/1/JPN/2
Page23
CHAPTER VI(bis)
Committee onForeign Exchange andOther Transactions
(Establishment)
Article 55-2. Acommittee forforeign exchange, etc.(referred toas"Committee" inthenext
Article) shall beestablished asanorgan attached totheMinistry ofFinance under thepurpose to
investigate anddeliberate important matters concerning foreign exchange, domestic direct investment,
etc.,orforintroduction oftechnology inresponse toinquiry oftheMinister ofFinance, theMinister
ofInternational Trade andIndustry orcompetent Minister forbusiness concerned.
(Organization andfunction)
Article 55-3. TheCommittee shallbeconstituted ofmembers ofwhich thenumber shallnot
bemore thanfifteen (15)persons.
2. Themembers shallbeappointed bytheMinister ofFinance fromamong persons whoareof
learning andexperience. Thetermofoffice ofthemembers shallbetwo(2)years. However, inthe
casewhere avacancy inthenumbers hasoccurred, thetermofoffice ofthemember whofilled the
vacancy shallbetheunexpired period ofthetermofhispredecessor.
3. Aperson whoisselected andappointed through cooptation byitsmembers asitschairman
shallpreside overtheaffairs oftheCommittee.
4. Members oftheCommittee maybereappointed.
5. Members oftheCommittee shallbeofpart-time service.
6. Inaddition tothose provided ineachofthepreceding paragraphs, aCabinet Order shallprovide
fornecessary matters concerning theorganization andfunction oftheCommittee.
CHAPTER VII
Relation toAdministrative Procedure Law
(Exempted application from Administrative Procedure Law)
Article 55-4. Theprovisions ofChapter IIandIIIoftheAdministrative Procedure Law
(Law No.88,1993) shallnotapply tolicence orcancel thereof under theprovisions ofparagraph 1
or2ofArticle 25orparagraph 1or2ofArticle 48.
CHAPTER VII(bis)
Demurral
(Public hearing ofopinion ondemurral)
Article 56.When ademurral isfiledagainst orarequest forreinvestigation issubmitted to
acompetent Minister inregard tohisdisposition made under theprovisions ofthisLaworanyOrderG/SG/N/1/JPN/2
Page24
enactedthereunder,theMinistershallgrantsuchapersontheopportunityforapublichearingofopinion,
byserving himwithanotice areasonable timeinadvance.
2. Theadvance notice under thepreceding paragraph shallmention thedate,place, andsubject
matter.
3. Atthepublic hearing ofopinion under paragraph 1,thedemurrant, ortheperson requesting
thereinvestigation, andother interested parties shallbegiven anopportunity toadduce evidence and
express opinions inregard tothesubject matter.
4. Inaddition tothose provided ineachofthepreceding three paragraphs, aCabinet Order shall
provide forthenecessary matters concerning theprocedures ofthepublic hearing ofopinion under
paragraph 1.
(Precedence ofdemurral procedures forlawsuit)
Article 57.Nolegal action maybecommenced seeking forthereversal ofthedisposition
mentioned inparagraph 1ofthepreceding Article, untilaruling onthedemurral oradecision onthe
request forreinvestigation concerning thatdisposition hasbeenmade.
2. Theprovisions ofparagraph 2ofArticle 27oftheAdministrative Procedure Lawshallnot
apply tothedisposition mentioned inparagraph 1ofthepreceding Article.
Article 58through Article 64.Deleted.
CHAPTER VIII
Miscellaneous Provisions
(Power ofFairTrade Commission)
Article 65.Nothing intheprovisions ofthisLawshallbeconstrued torepeal, modify oraffect
inanywaytheapplication ofthe"Law relating toProhibition ofPrivate Monopoly andMethod of
Preserving FairTrade" (Law No.54of1947), orthepower exercised bytheFairTrade Commission
under thesaidLawinwhatever circumstances.
(ActofGovernment agency)
Article 66.Those provisions ofthisLaworanyOrder enacted thereunder which obligate parties
tocertain actstoobtain licence, approval, orother disposition fromthecompetent Minister, Bank of
Japan, orauthorized foreign exchange bank, shallnotapply, asaCabinet Order provides for,forsuch
actsperformed byGovernment agencies.
(Obligation tosubmit report)
Article67.InadditiontothoserequiredundertheprovisionsofthisLaw,thecompetentMinister
maydemand submission ofareport, asaCabinet Order provides forandwithin thelimitnecessary
fortheenforcement ofthisLaw, fromanyperson whocarries outthose transactions governed bythis
Laworfrom anyother party concerned therewith.G/SG/N/1/JPN/2
Page25
(On-the-spot inspection)
Article 68.Thecompetent Minister can,within thelimitnecessary fortheenforcement of
thisLaw, haveacompetent Government official enter theplaces ofbusiness, offices, orfactories of
anyauthorized foreign exchange bank, money exchanger, orother party which performs anyoneof
those transactions governed bythisLawasabusiness, within theirbusiness hours, forinspection of
books, records, orother, orforinterrogation ofthepersons concerned.
2. When acompetent Government official enters suchaplace ofbusiness oroffice under the
provisions ofthepreceding paragraph, heshallcarry withhimadocument identifying hisstatus and
show ittothepersons concerned.
3. Theauthority foranon-the-spot inspection orinterrogation under theprovisions ofparagraph 1
shallnotbeconstrued asbeing conferred forthepurpose ofinvestigation ofacriminal offence.
(Delegation ofadministrative powers)
Article 68-2. Thecompetent Minister may,inaccordance withtheprovisions ofCabinet Order,
cause adirector oflocal bureaus orbranches oftheMinistry toperform apartofduties relating to
theenforcement oftheLaw.
(Partial delegation ofadministrative procedures)
Article 69.Thecompetent Minister may, asaCabinet Order provides entrust theBank of
Japan and/or authorized foreign exchange banks withpartoftheadministrative procedures concerning
theenforcement ofLaw.
2. When suchadministrative procedures arepartially entrusted totheBank ofJapan under the
provisions ofthepreceding paragraph, expenses incurred thereby maybeborne bytheBank ofJapan.
3. Inthecasementioned inparagraph 1,thestaffmembers oftheBank ofJapan and/or authorized
foreign exchange banks whohandle suchadministrative procedures shallbedeemed asofficial lawfully
engaging inpublic service inregard totheapplication ofthepenal provisions oftheCrime Law
(Law No.45of1907) andothers.
(Statistics onexternal claims anddebts, andthebalance ofinternational payments)
Article 69-2. TheMinister ofFinance shall, asaCabinet Order provides prepare statistics
onexternal claims anddebts, andthebalance ofinternational payments, andreport themtotheCabinet
periodically.
2. When theMinister ofFinance deems itnecessary forthepreparation ofstatistics referred to
inthepreceding paragraph, hemayrequire, asCabinet Order provides for,therelevant administrative
organs andothers present thenecessary material.
(Competent Minister, etc.)
Article 69-3. "Thecompetent Minister" referred tointhisLawshallbedetermined byaCabinet
Order.
2. "The Minister(s) incharge oftheindustry involved" referred tointheLawshallbe,unless
otherwise provided, determined byaCabinet Order theMinister under whose jurisdiction theindustryG/SG/N/1/JPN/2
Page26
involvedintherelevantdirectdomesticinvestment,etc.,orconclusion,etc.,ofagreementofimportation
oftechnology falls.
Article 69-4. TheMinister ofInternational Trade andIndustry may, when deems itespecially
necessary, asktheMinister forForeign Affairs foropinions, concerning theoperation oftheprovisions
ofArticle 25,paragraph 1orparagraph 2,orArticle 48,paragraph 1orparagraph 2.
2. TheMinisterforForeignAffairsmay,whenhedeemsitespeciallynecessaryforthemaintenance
ofinternational peace andsecurity, express hisopinions totheMinister ofInternational Trade and
Industry, concerning theoperation oftheprovisions ofArticle 25,paragraph 1orparagraph 2,or
Article 48,paragraph 1orparagraph 2.
(Transitional measures)
Article 69-5. When enacting, amending, orabolishing anyOrder under theprovisions ofthis
Law, suchanOrder mayprovide forcertain transitional measures (including those concerning thepenal
provisions) within thelimit reasonably considered asnecessary forthepurpose ofsuchenactment,
amendment, orabolishment.
CHAPTER IX
Penal Provisions
Article 69-6. Anyperson whocomes under anyoneofthefollowing items shallbeliable to
penal servitude notexceeding five(5)years, orafinenotexceeding twomillion (2,000,000) yen,or
both. However, when five-times theamount ofthesubject matter ofcontravention exceeds twomillion
(2,000,000) yen,afineuptothatfive-times amount shallbeapplicable:
(1) Aperson whocarried outanytransaction designated byanOrder provided by
Article 25,paragraph 1,without obtaining alicence asrequired bythesameparagraph;
(2) aperson whocarried outanyexportation ofgoods designated byanOrder provided
byArticle 48,paragraph 1,without obtaining alicence asrequired bythesame
paragraph.
2. Anattempted crime ofItem(2)ofthepreceding paragraph shallbeliable topunishment.
Article 70.Anyperson whocomes under anyoneofthefollowing Items shallbeliable to
penal servitude notexceeding three (3)years, orafinenotexceeding onemillion (1,000,000) yen,
orboth. However, when three-times theamount ofthesubject matter ofcontravention exceeds
onemillion (1,000,000) yen,afineuptothatthree-times amount shallbeapplicable:
(1) Aperson whocarried outanytransaction incontravention ofArticle 7,paragraph 4;
(2) aperson whocarried outanytransaction incontravention ofArticle 8;
(3) aperson whocarried outanytransaction incontravention ofanOrder provided by
Article 9,paragraph 1;
(4) aperson whodealt inforeign exchange business without obtaining anauthorization
asrequired byArticle 10,paragraph 1;G/SG/N/1/JPN/2
Page27
(5) aperson whoignored thesuspension orrestriction imposed under Article 13(including
themutatis mutandis application thereof asprovided byArticle 14,paragraph 2);
(6) aperson whodealt inmoney exchange business without obtaining anauthorization
asrequired byArticle 14,paragraph 1(except forauthorized foreign exchange banks);
(7) aperson whomade anypayment orreceived anypayment without obtaining alicence
asrequired byanOrder provided byArticle 1,paragraph 1or2,orincontravention
ofparagraph 3thereof;
(8) aperson whomade anypayment orreceived anypayment through orofthespecial
ways designated byanOrder provided byArticle 17,without obtaining alicence as
required bythesame Article;
(9) aperson whoexported orimported anymeans ofpayment, securities, precious metal
without obtaining alicence asrequired byanOrder provided byArticle 18,paragraph 1
or2;
(10) aperson whowaived orabandoned, either wholly orpartly, anyofhisclaimable right
against anon-resident without obtaining alicence asrequired byanOrder provided
byArticle 19;
(11) aperson whocarried outanycapital transaction without obtaining alicence asrequired
byArticle 21,paragraph 1;
(12) aperson whocarried outanycapital transaction without obtaining alicence asrequired
byanOrder provided byArticle 21,paragraph 2;
(13) aperson whocarried outanycapital transaction which issubject toArticle 23,
paragraph 1,bygiving nonotice orafalsenotice ofcontravention ofArticle 22,
paragraph 1;
(14) aperson whocarried outcapital transaction during theperiod provided by,andin
contravention of,Article 23,paragraph 1or3(excluding aperson whofallsunder
Item(19));
(15) aperson whocarried outanycapital transaction incontravention ofArticle 23,
paragraph 5(including mutatis mutandis application thereof provided byArticle 24,
paragraph 4);
(16) aperson whocarried outanycapital transaction incontravention ofdirective or
alteration orsuspension served under Article 23,paragraph ..(including
mutatis mutandis application thereof asprovided byArticle 2.,paragraph 4);
(17) aperson whocarried outanycapital transaction without obtaining alicence asrequired
byanOrder provided byArticle 24,paragraph 1;
(18) aperson whocarried outanycapital transaction which issubject toArticle 24,
paragraph 3,bygiving nonotice orafalsenotice incontravention ofparagraph 2
thereof;G/SG/N/1/JPN/2
Page28
(19) aperson whocarried outanycapital transaction during theperiod provided by,and
incontravention of,Article 24,paragraph 3,orArticle 23,paragraph 3,ofwhich the
latter'smutatis mutandis application isprovided byArticle 24,paragraph 4;
(19-2) aperson whocarried outanytransaction whose objective istoofferspecific technology
withoutobtainingalicenceasrequiredbyanOrderprovidedbyArticle25,paragraph2;
(20) aperson whocarried outanytransaction designated byanOrder provided byArticle 25,
paragraph 3,without obtaining alicence asrequired bythesame paragraph;
(20-2) aperson whocarried outanytransaction orexportation incontravention ofthe
prohibition oftransactions whose objective istooffer technology orexportation of
goods served under Article 25-2, paragraph 1orparagraph 3;
(20-3) aperson whocarried outanytransaction orexportation incontravention ofthe
prohibition oftransactions concerning salesandpurchase ofgoods orexportation of
goods served under Article 25-2, paragraph 2;
(21) aperson whocarried outanydirect domestic investment, etc.,bygiving nonotice
orafalsenotice incontravention ofArticle 27,paragraph 1(including aperson who
isdeemed asaforeign investor under theprovisions ofArticle 27-2);
(22) aperson whocarried outanydirect domestic investment, etc.,incontravention of,
andduring theperiod provided by,Article 27,paragraph 2(including theextended
orshortened period intheevent theperiod isextended under theparagraph 3or6of
thesameArticle orisshortened under theparagraph 4oftheArticle) (including aperson
whoisdeemed asaforeign investor under theprovisions ofArticle 27-2);
(23) aperson whocarried outanydirect domestic investment, etc.,incontravention of
Article 27,paragraph 8(including aperson whoisdeemed asaforeign investor under
theprovisions ofArticle 27-2);
(24) aperson whocarried outanydirect domestic investment, etc.,incontravention ofa
directive ofalteration orsuspension served under Article 27,paragraph 10(including
aperson whoisdeemed asaforeign investor under theprovisions ofArticle 27-2);
(25) aperson whocarried outanyconclusion, etc., ofagreement forimportation of
technology bygiving nonotice orafalse notice incontravention ofArticle 30,
paragraph 1;
(26) aperson whocarried outanyconclusion, etc., ofagreement forimportation of
technology incontravention of,andduring theperiod provided by,Article 30,
paragraph 2(including theextended orshortened period intheevent theperiod is
extended under theparagraph 3or6ofthesame Article orisshortened under the
paragraph 4oftheArticle);
(27) aperson whocarried outanyconclusion, etc., ofagreement forimportation of
technology incontravention ofArticle 27,paragraph 8,ofwhich mutatis mutandis
application isprovided byArticle 30,paragraph 7;
(28) aperson whocarried outanyconclusion, etc., ofagreement forimportation of
technology incontravention ofadirective ofalteration orsuspension served underG/SG/N/1/JPN/2
Page29
Article 27,paragraph 10,ofwhich mutatis mutandis application isprovided by
Article 30,paragraph 7;
(28-2) aperson whocarried outanyexportation ofgoods without obtaining alicence as
required byanOrder provided byArticle 48,paragraph 2;
(29) aperson whocarried outanyexportation ofgoods without obtaining approval as
required byanOrder provided byArticle 48,paragraph 3;
(30) aperson whomade anyshipment ofgoods incontravention ofanOrder provided by
Article 51;
(31) aperson whomade anyimportation ofgoods without obtaining approval asrequired
byanOrder provided byArticle 52;
(31-2) aperson whocarried outanyexportation ortransaction incontravention ofthe
prohibition ofexportation ofgoods ortransactions whose objective istoofferspecific
technology served under Article 53,paragraph 1;and
(32) aperson whomade anyexportation orimportation ofgoods incontravention ofthe
prohibition imposed under Article 53,paragraph 2.
Article 71.Anyone whoestablished anoffice newly inorder tocarry onforeign exchange
businessormoneyexchangebusiness,orwhochangedthesubstanceofthesebusinesseswithoutobtaining
alicence under theregulations ofArticle 10,paragraph 3(including thecasewhere itisapplied
mutatis mutandis inArticle 14,paragraph 2),shallbecondemned bypenal servitude notexceeding
oneyearorafinenotexceeding fivehundred thousand (500,000) yen,orbybothservitude andfine
mentioned above.
Article 72.Anyperson whocomes under anyoneofthefollowing Items shallbeliable to
penal servitude notexceeding six(6)months orafinenotexceeding twohundred thousand
(200,000) yen:
(1) Who didnotsubmit notification under theprovision ofArticle 10,paragraph 4
(including casesapplied mutatis mutandis inArticle 14,paragraph 2),orwhosubmitted
afalse notification andaltered thename orlocation ofitsoffice wherein foreign
exchange business ormoney exchange business isconducted, orwhodiscontinued these
businesses;
(2) aperson whoconcluded anyarrangement defined byArticle 11without obtaining
approval thereunder;
(3) aperson whocarried outanytransaction incontravention ofArticle 12(including
mutatis mutandis application thereof asprovided byArticle 14,paragraph 2);
(4) aperson whofailed tosubmit areport orsubmitted afalsereport incontravention of
Article 15;
(5) aperson whocarried outanycapital transaction bygiving nonotice orafalsenotice
incontravention ofArticle 22,paragraph 1(excluding aperson whofallsunder
Article 70,Item(13));G/SG/N/1/JPN/2
Page30
(6) aperson whocarried outanycapital transaction bygiving nonotice orafalsenotice
incontravention ofArticle 24,paragraph 2(excluding aperson whofallsunder
Article 70Item(18));
(7) aperson whofailed tosubmit areport orsubmitted afalsereport incontravention of
Article 26,paragraph 3(including aperson whoisdeemed asaforeign investor under
theprovisions ofArticle 27-2);
(8) aperson whofailed tosubmit areport orsubmitted afalsereport incontravention of
Article 29;
(9) aperson whofailed toproduce sufficient attestation orproduced falseattestation in
contravention ofanOrder provided byArticle 49;
(10) aperson whosubmitted noreport orafalsereport incontravention ofanOrder provided
byArticle 67;
(11) aperson whorefused, obstructed, orevaded theinspection provided byArticle 68,
paragraph 1;and
(12) aperson whomade noresponse orfalseresponse totheinterrogation provided by
Article 68,paragraph 1.
Article 73.When arepresentative ofajuridical person (including anyorganization defined
byArticle 26,paragraph 1,Item(2)or(4),orArticle 27-2, which shallapply hereinunder inthis
paragraph), oranagent, employee, orotheroperator engaged byajuridical ornatural person committed
anyoffence mentioned inArticle 69-6through thepreceding Article inregard tothebusiness orproperty
ofsuchajuridical ornatural principal, thejuridical ornatural principal shallbeliable tothefinespecified
ineachArticle, inaddition tothepunishment oftheoffender himself.
2. Forthepunishment ofanyorganization defined byArticle 26,paragraph 1,Item(2)or(4),
orArticle 27-2thereof, itsrepresentative oradministrator shallrepresent suchanorganization forthe
purpose oflegalproceedings, andtheprovisions ofthelawsgoverning thecriminal action against a
juridical person shallapply mutatis mutandis .G/SG/N/1/JPN/2
Page31
(Provisional translation)
IMPORT TRADE CONTROL ORDER
(Cabinet Order No.414,December 1949)
Final Amendment: (Cabinet Order No.373,5November 1987)
TheCabinet hereby establishes thisCabinet Order forthepurpose ofenforcement andonthe
basis ofArticle 26,Article 27,paragraph 1,Item1,Article 52,Article 54,Article 55,Article 66,
Article 67,Article 69andparagraph 4oftheSupplementary Provisions oftheForeign Exchange and
Foreign Trade Control Law(Law No.228of1949).
(Purpose)
Article 1.Thepurpose ofthisCabinet Order istoprovide forthenecessary control withregard
toimport trade.
Article 2.Deleted.
(Publication ofmatters relating toimport)
Article 3.1.TheMinister ofInternational Trade andIndustry shalldesignate andpublish
items ofgoods forwhich allocation ofimport quotas mustbeobtained, places oforigin orshipment
areas ofgoods forwhich approval ofimport must beobtained andother necessary matters relating
toimport ofgoods. However, where, withregard tocertain matters, theMinister deems thatitis
notappropriate topublish them, heshallnotberequired todoso.
2. When theMinister ofInternational Trade andIndustry designates, pursuant totheprovision
ofthepreceding paragraph, anitemofgoods forwhich theobtaining ofimport quota allocation is
required, heshallfirstobtain theconsent oftheMinister withjurisdiction forthatitemofgoods.
(Approval ofimport)
Article 4.1.Aperson desiring toimport goods shall, when theimport comes under any
oneofthefollowing items, obtain approval ofimport bysubmitting theapplication totheMinister
ofInternational Trade andIndustry inaccordance withtheprocedure established byanOrdinance of
theMinistry ofInternational Trade andIndustry:
(1) Where itisrequired toobtain allocation ofimport quota provided forinparagraph 1,
Article 9forimport ofthegoods;
(2) where specific place(s) oforigin orspecific shipment area(s) has(have) beenpublished
forthegoods pursuant totheprovision ofparagraph 1ofthepreceding Article, when
thegoods areimported fromthedesignated place(s) oforigin orfromthedesignated
shipment area(s);
(3) when thegoods areimported byeither ofthefollowing methods ofpayment:
(i)method ofpayment under item(1)or(2),paragraph 1,Article 7oftheForeign
Exchange Control Order (Cabinet Order No.260of1980);G/SG/N/1/JPN/2
Page32
(ii)method ofpayment designated asspecial bytheMinister ofFinance.
(4) besides thecases mentioned intheforegoing three items, where necessary matters
relating toimport ofthegoods have been published pursuant totheprovision of
paragraph 1ofthepreceding Article.
2. Incases excepting those mentioned initems (2)and(3)ofthepreceding paragraph, when a
person desiring toimport goods hasobtained approval ofimport asaresult oftheapplication made
toanAuthorized Foreign Exchange Bank (hereinafter referred toas"theBank") inaccordance with
theprocedure established byanOrdinance oftheMinistry ofInternational Trade andIndustry, heshall
notberequired, notwithstanding theprovision ofthatparagraph, toobtain ineffecting theimport by
virtue ofsuchapproval granted approval ofimport provided forinthatparagraph.
3. TheBank, when ithasreceived theapplication mentioned inthepreceding paragraph, ifthe
import under theapplication comes under eachofthefollowing items, shallapprove theapplication
andissue totheapplicant certificate ofimport approval:
(1) Where theimport iseffected within thescope ofthepublication made inregard to
matters relating tothegoods asprovided forinparagraph 1ofthepreceding Article;
(2) inthecasewhere forimport ofthegoods itisrequired toobtain allocation ofimport
quota provided forinparagraph 1,Article ..when theallocation hasbeengranted to
theperson desiring toimport thegoods, orwhen, inthecasewhere theimport is
effected bytheperson entrusted todosobytheperson granted theallocation, comes
underacaseasstipulatedbytheMinisterofInternationalTradeandIndustryasprovided
forintheproviso ofthatparagraph fortheimport theconfirmation under thesame
proviso hasbeenobtained.
4. Aperson desiring toimport goods fromaparty abroad inacontinuous traderelationship with
himorwithanarrangement under which thepayment iseffected through thatparty, when thegoods
aretobeimported foracertain period, using amethod ofpayment which comes under theprovision
of(i)or(ii)ofitem(3),paragraph 1andwhich istobespecified bytheMinister ofFinance andthe
Minister ofInternational Trade andIndustry inspecial consideration ofsuchatraderelationship, may
obtainfromtheMinisterofInternationalTradeandIndustry,inaccordancewiththeprocedureestablished
byanOrdinance oftheMinistry ofInternational Trade andIndustry, confirmation thattheimport
intended isinconformity withspecific requirements laiddown bytheMinister ofFinance andthe
Minister ofInternational Trade andIndustry inconnection withtheparty aborad, thespecified method
ofpayment, scope oftheimport tobeeffected bythemethod andother matters relating tothepayment
forthegoods tobeimported forthepurpose ofensuring thecomplete enforcing oftheprovision of
theaforesaid paragraph.
5. When theperson mentioned inthepreceding paragraph hasobtained theconfirmation mentioned
inthesameparagraph, heshallnotberequired notwithstanding theprovision ofitem(3),paragraph 1,
toobtain approval ofimport provided fortherein when heimports thegoods withthatconfirmation
inaperiod fromthedatewhen itwasgiven untilthedatedesignated bytheMinister ofInternational
Trade andIndustry atthetimewhen hegaveit.However, thisprovision shallnotapply when the
import comes under anyoftheitems (1),(2)and(4)ofthelatter paragraph.
6. Inaddition tothecaseasstipulated inparagraph 2,when, inacasecoming under item(4),
paragraph 1,publication made asanecessary matter inrespect ofagiven itemofgoods inaccordance
withtheprovision ofparagraph 1ofthepreceding Article provides foracertain procedure which must
befollowed when importing thatitemofgoods, andlaysdown that,when suchprocedure hasbeenG/SG/N/1/JPN/2
Page33
gonethrough,itisnotnecessarytoobtainapprovalofimportprovidedforinparagraph1whenimporting
thegoods,suchapprovalofimportshallnotberequired,notwithstandingtheprovisionofthatparagraph,
when theimport iseffected bygoing through thatformality.
7. Besides thecasesprovided forinparagraph 2andthepreceding twoparagraphs, when aperson,
whoexported goods, asmaterials tobeprocessed, withtheapproval granted himunder item(2),
paragraph 1,Article 2oftheExport Trade Control Order (Cabinet Order No.378of1949) authorizing
theexport ofgoods which istobemade onacontract forprocessing dealconcluded withaparty abroad
forprocessing abroad oncommission, imports, subject totheprovisions ofanOrdinance oftheMinistry
ofInternational Trade andIndustry, thegoods thusprocessed, approval ofimport provided forin
paragraph 1shallnotberequired, notwithstanding oftheprovision ofthatparagraph.
Article 5.1.Thevalidity termofapproval ofimport provided forinparagraph 1or2of
thepreceding Article shallbesix(6)months from thedatewhen suchapproval wasgranted.
2. TheMinister ofInternational Trade andIndustry, when hedeems itnecessary todosoin
consideration ofspecial circumstances, maydesignate avalidity termdifferent from thatmentioned
inthepreceding paragraph orextend thevalidity termoftheapproval ofimport.
3. Notwithstandingtheprovisionsoftheprecedingtwoparagraphs,theBankmay,withauthorization
oftheMinister ofInternational Trade andIndustry, giveapproval ofimport withavalidity termdifferent
from thatstipulated under paragraph 1orthatdesignated inaccordance withtheprovision ofthe
preceding paragraph, orextend thevalidity termoftheapproval ofimport.
From Article 6toArticle 8.Deleted.
(Allocation ofimport quota)
Article 9.1.Aperson desiring toimport goods ofanitempublished asortobesubject to
import quota allocation asprovided forinparagraph ...Article 3maynotbegranted approval ofimport
provided forinparagraph 1or2,Article 4,unless hefirstobtains allocation ofanimport quota for
thegoods asaresult oftheapplication made totheMinister ofInternational Trade andIndustry.
However, thisprovision shallnotapply when inthecasewhere theimport iseffected byaperson
entrusted todosototheperson granted theimport quota allocation, itcomes under acasestipulated
bytheMinister ofInternational Trade andIndustry orfortheimport theconfirmation oftheMinister
hasbeenobtained.
2. Allocation ofimport quota pursuant totheprovision ofthepreceding paragraph shallbemade
interms ofquantity. However, when itisdifficult ornotappropriate tomake theallocation interms
ofquantity, itmaybemade interms ofvalue.
3. When theMinister ofInternational Trade andIndustry allocates animport quota inaccordance
withtheprovision ofparagraph 1,heshalldosowithin thescope hedecides withtheprior consent
oftheMinister withjurisdiction fortheitemofgoods, andshallhaveconsultation withthatMinister.
4. TheMinister ofInternational Trade andIndustry, when hehasmade allocation asprovided
forinparagraph 1,shallissueacertificate ofimport quota allocation totheperson granted theallocation.
5. Theprocedure relating totheallocating ofimport quotas shallbeprescribed byanOrdinance
oftheMinistry ofInternational Trade andIndustry.
Article 10.Deleted.G/SG/N/1/JPN/2
Page34
(Conditions forapproval ofimport, etc.)
Article 11.1.TheMinister ofInternational Trade andIndustry, when hedeems itnecessary
todosoforthesound development offoreign tradeandthenational economy, may,inmaking approval
ofimport under paragraph 1,Article 4,orconfirmation under paragraph 4ofthatArticle, orimport
quota. Where aperson mentioned inArticle 9,attach conditions inregard toperiod inwhich theimport
istoeffected, place oforigin, shipment areaandother matters relating totheimport.
2. Ingiving approval ofimport provided forinparagraph 2,Article 4,theBank shall, subject
toinstruction oftheMinister ofInternational Trade andIndustry, attach conditions inregard tomatters
relating totheimport.
3. Apersononwhom,pursuanttotheprovisionsoftheprecedingtwoparagraphs,certainconditions
havebeenimposed withregard totheimport heintends tomake shallobserve suchconditions.
(Consultation andconcurrence between theMinisters)
Article 12.1.TheMinister ofFinance, when hespecifies amethod ofpayment applicable
under theprovision of(ii),item(3),paragraph 1,Article 4,shallfirstconsult withtheMinister of
International Trade andIndustry.
2. TheMinister ofInternational Trade andIndustry, when hegrants approval ofimport provided
forinitem(3),paragraph 1,Article 4,orgives confirmation provided forinparagraph 4ofthatArticle,
shallfirstobtain theconsent oftheMinister ofFinance.
Article 13.Deleted.
(Exceptions)
Article 14.Theprovisions ofArticle 4andArticle 9shallnotapply inthecases enumerated
below:
(1) Where thegoods given inANNEX Iareimported;
(2) where aperson mentioned inaleft-side column ofANNEX IIimports thegoods listed
inthecorresponding right-side column, carrying themwithhimonhisentering Japan,
or,when thegoods aresentinaseparate shipment, imports them, making fortheimport
acustoms declaration onhisentering Japan;
(3) where goods aretemporarily landed.
(Verification bycustoms)
Article 15.Thecustoms, inclearing goods, shallconfirm, under instruction oftheMinister
ofInternational Trade andIndustry, thattheperson importing thegoods hasobtained theapproval
ofimport orthatherequired toobtain theapproval.
(Reports)
Article 16.TheMinister ofInternational Trade andIndustry mayc..onlytotheextent required
toenforce theprovisions ofthisCabinet Order, necessary reports from person intending toimport
goods orwhohaveimported goods.G/SG/N/1/JPN/2
Page35
(Post examination ofimport)
Article 17.TheMinister ofInternational Trade andIndustry shallco-examination astowhether
theimport ofgoods hasbeeneffected inconformity withtherelevant provisions oflawandregulation
byinitiation ofthedocuments submitted pursuant totheprovision ofthepreceding Article orthe
provision ofparagraph 2,Article 5oftheForeign Exchange Control Order.
(Delegation ofpowers)
Article 18.Thefollowing powers oftheMinister ofInternational Trade andIndustry shall
bedelegated totheDirector-General ofCustoms:
(1) Among thepowers provided forinparagraph 1,Article 4,thep..pertaining toimport
ofthegoods which arewithin thescope prescribed byanOrdinance oftheMinistry
ofInternational Trade andIndustry;
(2) under theprovision ofparagraph 2,Article 5,thepower todesignate within thelimit
indicatedbytheMinisterofInternationalTradeandIndustry,avaliditytermofapproval
ofimport different from thatprescribed inparagraph 1ofthatArticle, ortoextend
thevalidity termoftheapproval ofimport foraperiod notexceeding onemonth;
(3) ofthepowers ofapproval under paragraph 3,Article 5,thepowers authorize theBank
toextend, onthebasis oftheprovision ofthesame paragraph, thevalidity termof
approval ofimport foraperiod notexceeding onemonth;
(4) under theprovision ofparagraph 1,Article 11,thepower toat..conditions in
connection withthegranting ofapproval ofimport thegoods asspecified initem(1).
(Delegation ofbusiness)
Article 19.Business mentioned ineachitemhereunder shallbeentrusted totheBankofJapan:
(1) Business relating toconfirmation provided forinparagraph 4,Article 4(including
theobtaining oftheconsent provided forinparagraph ..,Article 12asrequired
thereunder inconnection withsuchconfirmation) andofaffairs suchasaredesignated
byanOrdinance oftheMinistry ofInternational Trade andIndustry;
(2) business relating tothecollecting ofreports asprovided forinArticle 16andofaffairs
suchasaredesignated byanOrdinance oftheMinistry ofInternational Trade and
Industry;
(3) business relating toexamination provided forinArticle 17andofaffairs suchasare
designated byanOrdinance oftheMinistry ofInternational Trade andIndustry.
(Import bygovernment agencies)
Article 20.1.When government agencies import goods tobedesignated bytheMinister of
InternationalTradeandIndustry,theprovisionsofthisCabinetOrdershallnotapply.Whengovernment
agencies other thantheMinister ofInternational Trade andIndustry intend toimport goods, theyshall
firstconsult withtheMinister ofInternational Trade andIndustry.G/SG/N/1/JPN/2
Page36
2. Theprovision ofArticle 15shallapply, mutatis mutandis ,incases oftheimport under the
preceding paragraph.G/SG/N/1/JPN/2
Page37
(Provisional Translation) Rev.4/Apr.13/95
Ministry ofInternational Trade andIndustry Notification No.715
Notice ishereby given that,pursuant toparagraph 1ofArticle 3oftheImport Trade
ControlOrder(CabinetOrderNo.414of1949),theundersignedhasestablishedthefollowingregulations
togovern emergency measures tobetaken inresponse toanincrease intheimportation ofgoods, which
regulations shall become effective from andincluding thedaywhen theMarrakesh Agreement
Establishing theWorld Trade Organization becomes effective andbinding onJapan [1January 1995].
Dated this28thdayofDecember 1994.
Ryutaro Hashimoto
Minister ofInternational Trade andIndustry
-----------------------------------------------------------------------------
Regulations toGovern Emergency Measures toBeTaken
inResponse toanIncrease intheimportation ofGoods
Article 1. (Purpose)
Thepurpose ofthese Regulations shallbetoprovide forthose matters thatmaybenecessary
fortheimportation ofgoods toimplement theprovisions ofArticle XIXoftheGeneral Agreement
onTariffs andTrade 1994 (hereinafter referred toasthe"General Agreement") inAnnex 1Atothe
Marrakesh Agreement Establishing theWorld Trade Organization, andtheprovisions setforthinthe
Agreement onSafeguards (hereinafter referred toasthe"Safeguards Agreement"), which constitutes
apartofsuchAnnex 1A.
Article 2. (Measures concerning emergency import quotas)
TheMinister ofInternational Trade andIndustry shallcomply withtheprovisions setforth
inArticle 3through 20hereof when heorshe,based onthefactthataparticular product isbeing
imported intoJapan inincreased quantities (orinanincreased ratiorelative tothetotaldomestic
production) duetoadecrease inthemarket price ofsuchparticular product inanyforeign market or
ofanyother unforeseen change inthecircumstances -suchfactbeing hereinafter referred toasthe
"Fact ofIncreased Importation" -andthattheimportation intoJapan ofsuchparticular product insuch
increased quantities iscausing orthreatening tocause serious injury tothe"Domestic Industry
Concerned" (which termasusedherein inconnection withanyparticular product shallmean those
domestic producers whose collective output oflikeproducts andthose other products which directly
compete withsuchparticular product interms oftheiruse(those products being hereinafter collectively
referredtoas"LikeProductsetc.")constitutesatleastamajorproportionofthetotaldomesticproduction
ofLikeProducts etc.)-suchfactbeing hereinafter referred toasthe"Fact ofSerious Injury tothe
Domestic Industry Concerned" -findsthatitisurgently necessary forhimorhertodosoforthenational
economy, and,pursuant toparagraph 1ofArticle 3oftheImport Trade Control Order, makes such
particular product subject toanimport quota hereunder anddetermines suchother conditions asmay
benecessary fortheimportation ofsuchparticular product including butnotlimited totheperiod during
which suchparticular product shallremain subject toanimport quota hereunder andthecollective
sizeofsuchimport quota, andgives public notification ofsuchdetermination.G/SG/N/1/JPN/2
Page38
Article 3. (Products ineligible forimport quotas)
Notextile products etc.listed intheSchedule attached totheRegulations toGovern Emergency
Measures tobeTaken inResponse totheImportation ofTextile Products etc.inIncreased Quantities
(Ministry ofInternational Trade andIndustry Notification No.667of1994) shallbeeligible tobemade
subject toanyimport quota under Article 2hereof.
Article 4. (Duration ofimport quotas)
Noparticular product shallremain subject toanyimport quota under Article 2hereof fora
period inexcess offouryears; provided thatwhen calculating theduration ofanyimport quota
introduced thereunder withrespect toanyparticular product forthepurpose ofthisArticle oranyof
thefollowing articles hereof, theperiod, ifany,during which suchparticular product wassubject to
anyprovisional measure under Article 6oftheSafeguards Agreement shallbeincluded.
Article 5. (Collective sizeofimport quotas)
1. Thecollective sizeofanyimport quota introduced withrespect toanyparticular product under
Article 2hereof shallbeatleastequal totheaverage quantity levelofimport intoJapan ofsuchparticular
product during theappropriate 3-year period immediately preceding theintroduction ofsuchimport
quota, unless adifferent sizeisparticularly required forthepurposes ofsustaining thenational economy.
2. TheMinister ofInternational Trade andIndustry mayallocate shares inanyimport quota, as
referred toinparagraph 1ofthisArticle, introduced withrespect toanyparticular product among
supplying countries andterritories.
3. Allocationinaccordancewithparagraph2ofthisArticleshall,whenanyinternationalagreement
onhowtoallocate shares insuchquota hasbeenreached between Japan andother countries and
territories which haveasubstantial interest insupplying theparticular product toJapan, begoverned
bysuchinternational agreement.
4. Forthepurposes ofanyallocation inaccordance withparagraph 2ofthisArticle, incases
where aninternational agreement referred toinparagraph 3ofthisArticle hasnotbeenreached, the
share ofanyimport quota introduced hereunder withrespect toanyparticular product tobeallocated
among thosecountries andterritories which haveasubstantial interest insupplying theparticular product
toJapan shallbedetermined based ontheratiothatthequantity orvalue ofimportation intoJapan
ofthatparticular product ofthatcountry orterritory 'sorigin during anappropriate period immediately
preceding theintroduction ofthequota maybeartoJapan'stotalimport inquantity orvalue, asthe
casemaybe,ofsuchparticular product from allsources during thatperiod.
5. Notwithstanding anything tothecontrary setforthinparagraph 4ofthisArticle, ifandtothe
extent thattheMinister ofinternational Trade andIndustry finds thattheimport intoJapan fromany
particular country orterritory oforigin ofanyparticular product which issubject toanimport quota
hereunder isincreasing sosubstantially andmore rapidly thantheimport ofsuchparticular product
fromallthecountries andterritories oforigin asagroup, thatitiscausing serious injury totheDomestic
Industry Concerned andthatheorshehasjustreason todoso,heorshemayconduct theallocations
ofshares oftheimport quota pursuant totheprovisions ofparagraph 2ofthisArticle inanymanner
other thansetforth inparagraph 4ofthisArticle.G/SG/N/1/JPN/2
Page39
Article 6. (Products originating insmall supplier developing countries)
Incaseswhere thereisincluded among thoseparticular products which aresubject toanyimport
quota introduced pursuant toArticle 2hereof anyproduct originating inanydeveloping country or
countries whose respective shares ofimports oftheproduct concerned inJapan issmall (such product
being hereinafter referred toas"Product Originating inSmall Supplier Developing Countries"), all
thecountries andterritories except forsuchdeveloping countries shallbedesignated asthecountries
orterritories oforigin ofsuchproduct subject totheimport quota.
Article 7. (Progressive liberalization ofmeasures taken hereunder)
Iftheduration ofanyimport quota introduced under Article 2hereof isoveroneyear,measures
takeninordertoimplementsuchimportquotaundersaidArticle2(hereinafterreferredtoas"Emergency
Import Quota") shallbeprogressively liberalized atregular internals during itsduration.
Article 8. (Investigations)
TheMinister ofinternational Trade andIndustry shall, ifheorshefindsthatthereissufficient
evidence toshow thataFactofIncreased Importation isinexistence withrespect toanyparticular
product andthataFactofSerious Injury totheDomestic Industry concerned isresulting therefrom
(including thecasewhere heorshereceives fromanyoftheStateMinisters having jurisdiction over
such particular product arequest toinitiate aninvestigation hereunder, which request shall be
accompanied bysufficient evidence thereof) andbased onsuchfinding orrequest further finds that
itisnecessary todoso,conduct aninvestigation toverify whether suchFacts areinfactinexistence.
Article 9. (Notice toother State Ministers concerned)
TheMinister ofinternational Trade andIndustry shall, when heorsheinitiates aninvestigation
with respect toanyparticular product pursuant toArticle 8hereof (hereinafter referred toas
"Investigation"), sonotify theStateMinisters having jurisdiction oversuchparticular product andthe
Minister ofFinance inadvance.
Article 10. (Notification oftheinitiation ofanInvestigation)
TheMinister ofInternational Trade andIndustry shall, when heorshedecides toinitiate an
Investigation withrespect toanyparticular product, promptly giveintheKampo (Official Gazette)
public notification ofsuchdecision andof:
(i) thedescription ofsuchparticular product;
(ii) thedatewhen theInvestigation shallbeinitiated;
(iii) theperiod covered bytheInvestigation;
(iv) thegeneral aspects oftheInvestigation;
(v) theduedateforthepresentation ofevidence andtestimony under thefirstsentence
ofparagraph 1ofArticle 12hereof, theperiod during which theinspection ofevidence
under paragraph 1ofArticle 13hereof shallbeallowed, theduedateforthepresentation
ofviews under paragraph 1ofArticle 14hereof andtheduedateforthefurnishing
ofinformation under paragraph 1ofArticle 15hereof; andG/SG/N/1/JPN/2
Page40
(vi) suchadditional matters asmayberelevant totheInvestigation.
Article 11. (Period inwhich tocomplete anInvestigation)
1. Every Investigation initiated hereunder shallbecompleted within oneyearfollowing thedate
ofitsinitiation; provided, however, thatsuchperiod maybeextended ifandtotheextent considered
necessary foranyspecial reason orreasons.
2. TheMinister ofInternational Trade andIndustry shall, when heorshedecides toextend the
period inwhich tocomplete andInvestigation hereunder pursuant totheproviso toparagraph 1of
thisArticle, promptly giveintheKampo (Official Gazette) public notification ofsuchdecision aswell
asoftheperiod inwhich tocomplete theInvestigation asextended andthereason orreasons forthe
extension.
Article 12. (Submission ofevidence)
1. Incases where anInvestigation isinitiated hereunder withrespect toanyparticular product,
Interested Parties -which termasusedherein andhereinafter withrespect toanyparticular product
shallmean andinclude exporters andproducers ofsuchparticular product andtheirassociations (a
majorityofwhosedirectandindirectmembershipconsistsofsuchexportersand/orproducers),importers
ofsuchparticular product andtheirassociations (amajority ofwhose direct andindirect membership
consists ofsuchimporters), (domestic producers oflikeproducts etc.andtheirassociations (amajority
ofwhose direct andindirect membership consists ofsuchdomestic producers) andlabour unions
representing either directly orindirectly those workers whoareengaged inthedomestic production
ofanyofLikeProducts etc.(amajority ofwhose direct orindirect membership consists ofsuchworkers)
-may, onorbefore theduedatewhich isreferred toinitem(v)ofArticle 10hereof andofwhich
notification isdulygiven pursuant toArticle 10hereof, submit orgivetotheMinister ofInternational
Trade andIndustry evidence and/or testimony withrespect totherelevant Facts mentioned inArticle
8hereof oranyofthem. Aperson whosubmits orgives anyevidence and/or testimony pursuant to
theforegoing shall, ifheorsherequests thatanyoftheevidence and/or testimony which heorshe
isgoing tosubmit and/or anyofthefactstobesubstantiated thereby bekeptconfidential, make awritten
request tothateffect setting forth thereason orreasons forsuchrequest.
2. TheMinister ofInternational Trade andIndustry may, ifheorshefinds itnecessary todo
soatanytimeduring thecontinuance ofanyinvestigation hereunder, request anyInterested Party or
Parties tosubmit orgiveevidence and/or his,herortheirtestimony withrespect toalloranyofthe
relevant factsmentioned inArticle 8hereof. Aperson whosubmits anyevidence and/or testimony
tocomply withsuchrequest shall, ifheorsherequests thatanyoftheevidence and/or testimony which
heorsheisgoing tosubmit bekeptconfidential, make awritten request tothateffect setting forth
thereason orreasons forsuchrequest.
3. TheMinister ofInternational Trade andIndustry shall, ifheorsheifnotified byanyInterested
Party thatsuchInterested Party isgoing togivetestimony pursuant tothefirstsentence ofparagraph 1
ofthisArticle orifheorsherequests andInterested Party togivetestimony givesuchInterested Party
written notice setting forth theparticulars ofthehearing ofhearings atwhich suchInterested Party
maytestify including butnotlimited tothedate, place andtimeofsuchhearing orhearings.
4. TheMinister ofInternational Trade andIndustry shall, ifheorshefinds thattheevidence
submitted tohimorherpursuant toparagraph 1or2ofthisArticle includes anypiece ofevidence
which needs tobetreated confidential (such piece ofevidence being hereinafter referred toas
"Confidential Evidence"), request theparty providing suchConfidential Evidence tofurnish awritten
non-confidential summary thereof.G/SG/N/1/JPN/2
Page41
5. Anyparty whoisrequested tofurnish anon-confidential written summary ofanyConfidential
Evidence pursuant toparagraph 4ofthisArticle shall, ifheorshebelieves thatsuchConfidential
Evidence cannot besummarized, furnish theMinister ofInternational Trade andIndustry withawritten
statement setting forth suchbelief andthereasons therefor.
6. Incases where theparty concerned whoisrequested tofurnish awritten non-confidential
summary ofanyConfidential Evidence pursuant toparagraph 4ofthisArticle furnishes neither the
written non-confidential summary thereof called forunder saidparagraph 4northewritten statement
called forunder paragraph 5ofthisArticle orincases where theMinister ofInternational Trade and
Industry findsthatanywritten non-confidential summary furnished bysuchparty withrespect toany
Confidential Evidence pursuant tosaidparagraph 4orthewritten statement furnished bysuchparty
withrespect thereto pursuant tosaidparagraph 5isimproper, theMinister ofInternational Trade and
Industry maydisregard suchConfidential Evidence.
7. Incases where anyInterested Party requests thatanyevidence submitted byhimorherpursuant
tothefirstsentence ofparagraph 1or2ofthisArticle 12bekeptconfidential buttheMinister of
International Trade andIndustry determines thatsuchevidence neednotbekeptconfidential, heor
sheshallpromptly notify suchInterested Party ofsuchdetermination andthereasons therefor. If,
inthiscase, suchInterested Party neither revokes hisorherrequest forconfidential treatment ofany
evidence submitted byhimorhernorcomplies withtheministerial request forawritten non-confidential
summaryofsuchevidence,theMinisterofInternationalTradeandindustrymaydisregardsuchevidence.
8. Incases where theMinister ofInternational Trade andIndustry decides, pursuant toeither
ofthepreceding twoparagraphs ofthisArticle, todisregard anyevidence submitted byanyInterested
Party pursuant tothefirstsentence ofparagraph 1or2ofthisArticle, heorsheshallpromptly notify
suchInterested Party ofsuchdecision andthereasons therefor inwriting.
9. Theprovisions setforthinparagraphs 4through 8ofthisArticle shallapply mutatis mutandis
toanyandalltestimony given pursuant tothefirstsentence ofparagraph 1or2ofthisArticle.
Article 13. (Inspection ofevidence)
1. Incases where anInvestigation isinitiated hereunder withrespect toanyparticular product,
theMinister ofInternational Trade andIndustry shallmake available forinspection byInterested Parties
copies ofallevidence anddeposition statements containing thetestimony given orsubmitted withrespect
tosuchparticular product pursuant tothefirstsentence ofparagraph 1or2ofArticle 12hereof on
orbefore therelevant duedatewhich isreferred toinitem(v)ofArticle 10hereof andofwhich
notification isdulygiven pursuant toArticle 10hereof andallother available evidence (excluding,
however, evidence anddeposition statements containing testimony which isbynature confidential and/or
which areprovided byInterested Parties asconfidential information) andcopies ofallwritten
non-confidential summaries andwritten statements submitted tohisorherpursuant toparagraph 4
or5ofArticle 12hereof orthesecond sentence ofparagraph 7ofArticle 12hereof (such available
evidence andwritten materials being hereinafter inparagraph 2ofthisArticle collectively referred
toas"Available Evidence").
2. AnyInterested Party whowishes toinspect anyAvailable Evidence pursuant toparagraph 1
ofthisArticle 13shallfurnish theMinister ofInternational Trade andIndustry withawritten statement
setting forththetitleoftheparticular itemoritems oftheAvailable Evidence which heorshewishes
toinspect andthereasons whyheorsheisanInterested Party.G/SG/N/1/JPN/2
Page42
Article 14. (Expression ofviews)
1. Incases where anInvestigation isinitiated hereunder withrespect toanyparticular product,
Interested Parties, aswellasindustrial users anddistributors ofsuchparticular product andtheir
associations (hereinafter referred toas"Industrial Users etc.") andmajor consumer associations which
represent theinterests ofconsumers ofsuchparticular product may, onorbefore theduedatewhich
isreferred toinitem(v)ofArticle 10hereof andofwhich notification isdulygiven pursuant to
Article 10hereof, express totheMinister ofInternational Trade andIndustry theirviews onsuch
Investigation inwriting; provided, however, thatnosuchmajor consumer associations mayexpress
theirviews thereon unless thatparticular product isdistributed onaretail level.
2. TheMinister ofInternational Trade andIndustry may, ifheorshefinds itnecessary todo
soatanytimeduring thecontinuance ofanyInvestigation hereunder, request anyInterested Party or
Parties, anyoneormoreofIndustrial Users etc.and/or anymajor consumer association orassociations
representing theinterests ofconsumers ofsuchparticular product toexpress their views onsuch
Investigation inwriting.
Article 15. (Submission byIndustrial Users etc.andconsumer associations ofinformation)
1. Incases where anInvestigation isinitiated hereunder withrespect toanyparticular product,
Industrial Users etc.andmajor consumer associations which represent theinterests ofconsumers of
suchparticular products may, onorbefore theduedatewhich isreferred toinitem(v)ofArticle 10
hereof andofwhich notification isdulygiven pursuant toArticle 10hereof, provide theMinister of
InternationalTradeandIndustrywithanyinformationrelevanttoanyofthesubjectsofsuchInvestigation
inwriting; provided, however, thatnosuchmajor consumer associations mayprovide anysuch
information unless thatparticular product isdistributed onaretail level.
2. TheMinister ofInternational Trade andIndustry may, ifheorshefinds itnecessary todo
soatanytimeduring thecontinuance ofanyInvestigation hereunder, request anyoneormore of
Industrial Users etc.and/or anymajor consumer association orassociations representing theinterests
ofconsumers ofsuchparticular product toprovide anyinformation relevant toanyofthesubjects of
suchInvestigation inwriting.
Article 16. (Seeking advice oftheExport andImport Transaction Council)
TheMinister ofInternational Trade andIndustry shall, when heorshefindsthatitisnecessary
tonewly introduce anyEmergency Import Quota hereunder orwithdraw orliberalize anyoftheexisting
Emergency Import Quotas, promptly referthematter totheExport andImport Transaction Council
fortheiradvice.
Article 17. (Notification ofEmergency Import Quotas)
1. TheMinister ofInternational Trade andIndustry shall, when heorshehasdecided tonewly
introduce anyEmergency Import Quota hereunder orwithdraw orliberalize anyoftheexisting
Emergency Import Quotas withrespect toanyparticular product, promptly giveintheKampo (Official
Gazette) public notification ofsuchdecision andof:
(i) thedescription ofsuchparticular product;
(ii) theduration ofsuchnewEmergency Import Quota (and, incaseofwithdrawal or
liberalization ofanyexisting Emergency Import Quota, thedatewhen suchwithdrawal
orliberalization shallbecome effective);G/SG/N/1/JPN/2
Page43
(iii) incases where there isincluded among those particular products which aresubject
toanyEmergencyImportQuotaorquotasintroducedhereunderanyProductOriginating
inaSmall Supplier Developing Country orCountries, thenames ofallthecountries
andterritories oforigin ofthatparticular product;
(iv) thefactsfound asaresult oftheInvestigation made hereunder withrespect tosuch
particular product andtheconclusions, ifany,drawn therefrom. (This item(iv)shall
notbeapplicable incaseofwithdrawal orliberalization ofanyexisting Emergency
Import Quota);
(v) thenature ofliberalization ofsuchexisting Emergency Import Quota, ifapplicable;
and
(vi) suchadditional matters asmaybeconsidered relevant.
2. TheMinister ofInternational Trade andIndustry shall, when heorshehasdecided, based
ontheresultsofanyInvestigationmadehereunderwithrespecttoanyparticularproduct,nottointroduce
anyEmergency Import Quota forsuchparticular product, promptly giveintheKampo (Official Gazette)
public notification ofsuchdecision andof:
(i) thedescription ofsuchparticular product;
(ii) thefactsfound asaresult ofsuchInvestigation andtheconclusions, ifany,drawn
therefrom; and
(iii) suchadditional matters asmaybeconsidered relevant.
Article 18. (Extension ofemergency import quotas)
1. Incases where theMinister ofInternational Trade andIndustry finds, atanytimewhile an
Emergency Import Quota remains effective withrespect toanyparticular product, thataFactofSerious
Injury totheDomestic Industry Concerned willremain evenaftertheexpiry oftheperiod during which
suchparticular product istoremain subject tosuchEmergency Import Quota under Article 2hereof
because oftheimportation intoJapan ofsuchparticular product inincreased quantities andthatthe
Domestic Industry Concerned isthenintheprocess ofstructural adjustment, thenheorshemayextend
theperiod during which suchparticular product shallremain subject tosuchEmergency Import Quota
butsothatsuchparticular product shallnotremain subject tosuchEmergency Import Quota fora
period inexcess ofeightyears intotal, theprovisions ofArticle 4hereof notwithstanding; provided,
however, thatnosuchextension shallbemade, ifshares ofsuchEmergency Import Quota havetherefore
beenallocated inthemanner specified inparagraph 5ofArticle 5hereof.
2. Incaseswhere theduration ofanyEmergency Import Quota isextended pursuant toparagraph 1
ofthisArticle, suchEmergency Import Quota which remains effective during suchextended duration
shallbelessimport-restrictive thanthatwhich waseffective immediately before suchextension.
3. Theprovisions setforthinArticle 8through 17hereof shallapply mutatis mutandis toallactions
andfindings referred toinparagraph 1ofthisArticle; provided thatallreferences inparagraphs 1
and2ofArticle 12hereof to"relevant Facts mentioned inArticle 8hereof" shallbedeemed tobe
references to"relevant circumstances mentioned inparagraph 1ofArticle 18hereof".G/SG/N/1/JPN/2
Page44
Article 19. (Review ofEmergency Import Quotas)
Incases where theduration ofanyEmergency Import Quota introduced under Article 2hereof
exceeds threeyears, theMinister ofInternational Trade andIndustry shall, inthemiddle ofsuchperiod,
review thesituation withtheviewtowithdrawal of,orincrease inthepaceofliberalization of,such
Emergency Import Quota.
Article 20. (Period during which noEmergency Import Quotas areallowed)
Nofurther oradditional Emergency Import Quota shallbeintroduced hereunder withrespect
toanyparticular product withrespect towhich anyEmergency Import Quota hereunder orother action
under Article XIX(Emergency Action onImports ofParticular Products) oftheGeneral Agreement
orunder theSafeguards Agreement (such quota orother action being hereinafter collectively referred
toas"Emergency Measure") haseverbeenintroduced before, unless aperiod equal totheduration
ofsuchEmergency Measure ortwoyears, whichever islonger, shallhavepassed aftertheexpiry of
suchduration orunless theduration ofsuchfurther oradditional Emergency Import Quota doesnot
exceed 180days(such short-lived Emergency Import Quota being hereinafter referred toas"Short-lived
Emergency Measure"); provided thatnothing herein contained shallbedeemed topreclude anyShort-
lived Emergency Measure from being taken hereunder, aslongas:
(i) suchShort-lived Emergency Measure istaken withrespect tosuchparticular product
atanytimeatleastoneyearafterthedaywhen theimmediately preceding Emergency
Measure taken withrespect tosuchparticular product firstbecame effective; and
(ii) suchparticular product hasnotbeen made subject toanyEmergency Measure or
Measures hereunder more thantwice during the5-year period immediately preceding
theintroduction ofsuchShort-lived Emergency Measure.
Article 21. (Compensatory measures andcountermeasures)
TheMinister ofInternational Trade andIndustry shallcomply withtheprovisions setforth
inArticles 22through 24hereof incases where heorshe,pursuant toparagraph 1ofArticle 3of
theImport Control Order:
(i) decides, inconjunction withanyEmergency Measures which heorshetookorisabout
totakewithrespect toanyparticular product, theconditions tobeapplied tothe
importation ofanyother goods other thansuchparticular product tocomply withthe
provisions ofparagraph 2(Procedures forEmergency Actions) ofArticle XIXofthe
General Agreement andtheresult ofanyconsultation made under theSafeguards
Agreement andgives public notification ofsuchdetermination; or
(ii) determines, inconjunction withanyaction taken byanyforeign country tosuspend
anyoftheconcessions and/or other obligations granted orundertaken bysuchforeign
country withrespect toanyparticular product pursuant totheprovisions ofparagraph 1
ofArticle XIXoftheGeneral Agreement andthose setforth intheSafeguards
Agreement (such action being hereinafter referred toas"Foreign Safeguard Action"),
andbased onhisorherfinding thatanyofthesituations referred toinparagraph 3(a)
(Measures against Emergency Actions) ofArticle XIXoftheGeneral Agreement and
theSafeguards Agreement ofparagraph 3(b)(Measures against Emergency Actions
inUrgent Situations) ofArticle XIXoftheGeneral Agreement isinexistence, tomake
anyparticular product orproducts subject toanimport quota hereunder anddetermines
theconditions tobeapplied totheimportation ofanyparticular product orproductsG/SG/N/1/JPN/2
Page45
hereunder (including butnotlimited tothedesignation ofthecountries orterritories
oforigin ofsuchparticular product orproducts tobeaffected thereby, ifheorshe
takes anymeasure under paragraph 3(a)ofArticle XIXoftheGeneral Agreement and
theSafeguards Agreement) andgives public notification ofsuch decision and
determination.
Article 22. (Ibid.)
Incases where anyForeign Safeguard Action istaken byanyforeign country withrespect
toanyparticular product, theMinister ofInternational Trade andIndustry shallnotnevertheless take,
among othermeasures mentioned inparagraph 2ofArticle 21hereof, anymeasure under paragraph 3(a)
ofArticle XIXoftheGeneral Agreement andtheSafeguards Agreement, unless anduntilthree years
shallhavepassed since thedateofentry intoeffect ofsuchForeign Safeguard Action aslongassuch
Foreign Safeguard Action istaken based onthefactofanabsolute increase inquantities ofthe
importation intosuchforeign country ofsuchparticular product.
Article 23. (Ibid.)
Whenever anymeasure mentioned ineither paragraph 1or2ofArticle 21hereof istaken
hereunder asacompensatory measure orcountermeasure against anyForeign Safeguard Action, due
careshallbeexercised sothatisshallnotexceed thelimits which itshould naturally haveassuch
compensatory measure orcountermeasure andthatitshallcause theleastpossible effect onthenational
economy.
Article 24. (Ibid.)
Theprovisions setforthinArticle 16hereof shallapply mutatis mutandis whenever anymeasure
referred toineither paragraph 1or2ofArticle 21hereof istaken hereunder.G/SG/N/1/JPN/2
Page46
[Provisional Translation]
Cabinet Order Relating toEmergency Duties
(Cabinet Order No.417,December 1994)
(Domestic industry)
Article 1. Theterm"domestic industry" asprovided forinparagraph 1ofArticle 9oftheCustoms
Tariff Law(hereinafter referred toas"theLaw") shallbeinterpreted asreferring tothedomestic
producers whose collective output ofthelikeordirectly competitive product (hereinafter referred to
as"thelikeproduct etc.") constitutes amajor proportion ofthetotaldomestic production ofthose
products.
(Notification oftheinitiation ofinvestigation)
Article 2. TheMinister ofFinance shall, when theinvestigation referred toinparagraph 6of
Article 9oftheLaw(including thecasewhere theprovisions ofthesaidparagraph isapplied mutatis
mutandis toparagraph 11ofthesaidArticle) (hereinafter referred toasthe"Investigation") isinitiated,
promptly notify thateffect together withthefollowing information intheOfficial Gazette:
(1) Thedescriptions, name, type, model andfeatures oftheproduct subject tothe
investigation,
(2) thedateofinitiation oftheinvestigation,
(3) theperiod oftimefortheinvestigation,
(4) thesummary ofthematters subject totheinvestigation,
(5) thetime-limits forpresenting theevidence ortestimony under theprovisions offirst
sentence ofparagraph 1ofArticle 4,forseeing theevidence etc.under theprovisions
ofparagraph1ofArticle5,forpresentingtheviewsundertheprovisionsofparagraph1
ofArticle 6andforpresenting theinformation under theprovisions ofparagraph 1
ofArticle 7,
(6) anyother relevant matters.
(Extension oftheperiod ofinvestigation)
Article 3. TheMinister ofFinance shall, when theperiod ofinvestigation istobeextended in
accordance withtheprovisions oftheproviso toparagraph 7ofArticle 9oftheLaw(including the
casewhere those provisions areapplied mutatis mutandis toparagraph 11ofthesaidArticle), promptly
notify tothateffect, theextended period oftheinvestigation andreasons forsuchextension intheOfficial
Gazette.
(Presentation ofevidence)
Article 4. Where theinvestigation isinitiated, theinterested parties (hereinafter interpreted as
referring toanexporter oraproducer ofsuchimported product oranassociation thereof amajority
ofthedirect orindirect members ofwhich areexporters orproducers ofsuchimported product, an
importer ofsuchimported product ortheassociation thereof amajority ofthedirect orindirect members
ofwhich areimporters ofsuchimported product, adomestic producer ofthelikeproduct etc.oranG/SG/N/1/JPN/2
Page47
association thereof amajority ofthedirect orindirect members ofwhich areproducer ofthelikeproduct
etc.andalabour union amajority ofthedirect orindirect members ofwhich areengaged inproduction
ofthelikeproduct, etc.inJapan) mayuntilthetime-limit referred toinsubparagraph (5)ofArticle 2
andnotified under theprovisions ofthesaidArticle, present theevidence toortestify before theMinister
ofFinance onthefactreferred toinparagraph 6Article 9oftheLaworonthecircumstances referred
toinparagraph 10ofthesaidArticle. Inthiscase, anyperson whoistopresent anyevidence orto
testify shallpresent adocument stating thefacttobeidentified bysuchevidence ortestimony anda
request forconfidential treatment, ifnecessary, ofsuchevidence ortestimony withthereason forthat
request.
2. TheMinister ofFinance may, ifdeemed tobenecessary inthecourse oftheinvestigation,
request theinterested parties topresent anyevidence ortotestify onthefactreferred toinparagraph 6
ofArticle 9oftheLaworonthecircumstances referred toinparagraph 10ofthesaidArticle. In
thiscase, anyperson whoistopresent theevidence ortotestify shallpresent adocument stating a
request forconfidential treatment, ifnecessary, ofsuchevidences withthereason forthatrequest.
3. TheMinister ofFinance shall, when anyrequest totestify ismade bytheinterested parties
inaccordance withtheprovisions ofthefirstsentence ofparagraph 1orwhen herequests theinterested
parties totestify inaccordance withtheprovisions ofthefirstsentence ofthepreceding paragraph,
notify inwriting suchinterested parties ofthedateandtime, placeandothernecessary matters totestify.
4. TheMinister ofFinance, when hefindsthatconfidentiality iswarranted regarding theevidence
presented under theprovisions ofthefirstsentence orparagraph 1orthefirstsentence ofparagraph 2
(hereinafter inthisArticle referred toasthe"Confidential Evidence") shallrequire theperson who
provided thatevidence, etc.tosubmit non-confidential summaries thereof inwriting.
5. Theperson whoisrequired tosubmit thesummaries inwriting under theprovisions ofthe
preceding paragraph, ifheconsiders thatheisnotabletomake suchsummaries oftheconfidential
evidence under theprovisions ofthepreceding paragraph, shallsubmit adocument stating tothateffect
andthereasons forthat.
6. TheMinister ofFinance maynotinvestigate suchconfidential evidence when theperson who
isrequired tosubmit asummary oftheconfidential evidence under theprovisions ofparagraph 4does
notsubmit thedocument under theprovisions ofparagraph 2orwhen thecontents ofthedocument
which hasbeensubmitted bysuchperson under theprovisions ofparagraphs 4and5isnotwarranted.
7. TheMinister ofFinance shall, when itisnotwarranted totreatasconfidential theevidences
which arerequested tobetreated assuchbytheperson whohassubmitted evidences under theprovisions
ofthefirstsentence ofparagraph 1orthefirstsentence ofparagraph 2,promptly notify tothateffect
andreason forthattotheperson. Inthatevent, theMinister ofFinance maynotinvestigate those
evidences unless theperson whohassubmitted suchevidences withdraws therequest forconfidential
treatment norsubmits appropriate summary inwriting.
8. TheMinister ofFinance shall, when hedecides under theprovisions ofparagraphs 6and7
nottoinvestigate theevidences submitted inaccordance withtheprovisions ofthefirstsentence of
paragraph 1orthefirstsentence ofparagraph 2,notify tothateffect andreasons forthatinwriting
totheperson whosubmitted theconfidential evidence.
9. Theprovisions ofparagraph 4through thepreceding paragraph shallapply mutatis mutandis
tothetestimony given under theprovisions ofthefirstsentence ofparagraph 1orthefirstsentence
ofparagraph 2.G/SG/N/1/JPN/2
Page48
(Evidence, etc.tobeseen)
Article 5. Where theinvestigation isinitiated, theMinister ofFinance shall, untilthetime-limit
referred toinsubparagraph (5)ofArticle 2andnotified inaccordance withtheprovisions ofthesaid
Article, provide opportunities fortheinterested parties toseeevidences submitted under theprovisions
ofthefirstsentence ofparagraph 1orthefirstsentence ofparagraph 2ofthepreceding Article or
thedocument which records thetestimony submitted under thesaidprovisions andother evidences
(excluding evidences anddocuments which havebeenbynature warranted tobetreated asconfidential,
evidences which havebeenpresented asconfidential aswellasdocuments which record testimony
submitted asconfidential byinterested parties) orsummaries tobepresented under theprovisions of
paragraphs 4or5orthesecond sentence ofparagraph 7ofthepreceding Article (hereinafter inthe
following paragraph referred toas"evidences, etc.").
2. Theperson, whowishes toseeevidences, etc.,under theprovisions ofthepreceding paragraph,
shallsubmit totheMinister ofFinance adocument which contains alistofevidences, etc.thewishes
toseeandthegrounds onwhich heisentitled tobeoneoftheinterested parties.
(Presentation ofviews)
Article 6. When theinvestigation isinitiated, anyinterested party, industrial userorseller of
theproduct under theinvestigation oranyassociation there of(hereinafter inthisArticle andthe
following Article referred toas"industrial users etc.") oranyrepresentative consumer organization
ofsuchproduct may, untilthetime-limit referred toinsubparagraph (5)ofArticle 2andnotified in
accordance withtheprovisions ofthesaidArticle, present totheMinister ofFinance inwriting its
views which arerelevant totheinvestigation. However representative consumer organizations may
present theirviews onlyinthecasewhere theproduct iscommonly soldattheretail level.
2. TheMinister ofFinance may,ifnecessary inthecourse oftheinvestigation, request interested
parties, industrial users etc.,orrepresentative consumer organizations ofsuchproduct topresent their
views which arerelevant totheinvestigation.
(Presentation ofinformation byindustrial users etc.andconsumer organization)
Article 7. Whentheinvestigationisinitiated,anyindustrialusersetc.ortherepresentativeconsumer
organization oftheproduct under theinvestigation may, until thetime-limit referred toin
subparagraph (5)ofArticle 2andnotified inaccordance withtheprovisions ofthesaidArticle, present
totheMinister ofFinance withinformation inwriting which isrelevant totheinvestigation. However
representative consumer organizations mayprovide suchinformation onlyinthecasewhere theproduct
iscommonly soldattheretail level.
2. TheMinister ofFinance may, ifnecessary inthecourse oftheinvestigation, request industrial
users etc.orrepresentative consumer organizations oftheproducts under theinvestigation toprovide
information inwriting which isrelevant totheinvestigation.
(Notification ofemergency duty, etc.)
Article 8. TheMinister ofFinance shall, when decided totakethemeasure under theprovisions
ofparagraph 1or8ofArticle 9oftheLaw, toextend ameasure referred toinparagraph 1ofsaid
Article inaccordance withtheprovisions ofparagraph 10ofsaidArticle ortowithdraw orliberalize
ameasure referred toinparagraph 1ofthesaidArticle, promptly notify tothateffect andthefollowing
information intheOfficial Gazette:G/SG/N/1/JPN/2
Page49
(1) Thedescription, name, type, model, andfeatures ofspecified product under the
provisions ofparagraphs 1or8ofArticle 9oftheLaw,
(2) Specified period oftimeunder theprovisions of1or8ofArticle 9oftheLawordate
ofwithdrawal orliberalization when themeasure under theprovisions ofparagraph 1
ofthesaidArticle istobewithdrawn orliberalized,
(3) Theorigin oftheproduct ofdeveloping country withsmall share ifsuchproduct of
developing country withsmall share isnottobespecified under theprovisions ofthe
proviso toparagraph 1ortheproviso toparagraph 8ofArticle 9oftheLaw,
(4) Thefactsidentified byinvestigations andconclusions obtained therefrom except the
casewhere themeasure under theprovisions ofparagraph 1ofArticle 9iswithdrawn
orliberalized,
(5) Thedetail ofliberalization when themeasure under theprovisions ofparagraph 1is
tobeliberalized,
(6) Anyother relevant matters.
2. TheMinister ofFinance shall, when decided, asaresult oftheinvestigation, nottotakethe
measure under theprovisions ofparagraph 1ofArticle 9oftheLawornottoextend themeasure under
thesaidprovisions inaccordance withtheprovisions ofparagraph 10ofthesaidArticle, promptly
notify tothateffect andthefollowing information intheOfficial Gazette.
- Thedescription, name, type, model andfeatures ofproduct under suchinvestigation,
- Thefactsidentified byinvestigations andconclusions obtained therefrom,
- Anyother relevant matters.
(Consultation relating totheinvestigation)
Article 9. TheMinister ofFinance, anyMinister whohasjurisdiction overtheindustry inJapan
asprovided forinparagraph 1ofArticle 9oftheLaw(hereinafter referred toas"theMinister having
jurisdiction overtheindustry") andtheMinister ofInternational Trade andIndustry shall, when they
deem itnecessary toinitiate aninvestigation, communicate toeachother tothateffect. Inthiscase,
theMinister ofFinance, theMinister having jurisdiction over theindustry andtheMinister of
International Trade andIndustry always keep aclose contact witheachother withregard tothe
investigation (including ways todealwiththeresult ofinvestigation) andmake adetermination, upon
consultation among them regarding anyimportant aspects ofthose matters referred toabove.
(Referral, etc.totheCustoms Tariff Council)
Article 10. TheMinister ofFinance shall, ifdeemed tobenecessary totakeameasure under the
provisions ofparagraphs 1,3,4or8ofArticle 9oftheLaw, toextend themeasure referred toin
paragraph 1ofthesaidArticle inaccordance withtheprovisions ofparagraph 10ofthesaidArticle
ortowithdraw orliberalize ameasure referred toinparagraphs 1,3or4ofthesaidArticle, promptly
referthematter totheCustoms Tariff Council. However, theprovisions above shallnotapply tothe
casewhere itisdeemed necessary totakepromptly ameasure under theprovisions ofparagraph 8
ofthesaidArticle.G/SG/N/1/JPN/2
Page50
2. TheMinisterofFinanceshall,whenthemeasureundertheprovisionsofparagraph8ofArticle9
oftheLawistaken under theproviso tothepreceding paragraph, promptly report totheCustoms Tariff
Council thedetails ofsuchmeasure.
Supplementary provisions
Thiscabinet order shallenterintoforce asofthedayonwhich theLawamending theCustoms
Tariff Law, etc.enters intoforce.G/SG/N/1/JPN/2
Page51
CUSTOMS TARIFF LAW
(Provisional Translation)
(Law No.54of1910)
Final Amendment (Law No.118of1994)
(Purpose)
Article 1.ThisLawshallprovide theratesofcustoms duty, thebasisforcustoms valuation,
thereduction ofandexemption fromcustoms dutyandother matters relating tothecustoms systems.
(Definition)
Article 2.InthisLaworinanyCabinet Order issued thereunder, theterm"importation" shall
besubject tothedefinition asprovided forinArticle 2(Definition) oftheCustoms Law(Law No.61
of1954)andtheterm"exportation"shallmeantheactasprovidedforinsubparagraph(2)ofparagraph1
ofthesaidArticle andalsotheshipment ofgoods fromaspecific country (with regard tomarine products
caught orgathered intheopensea,aspecific country includes vessels ofthecountry which hascaught
orgathered them) toanyother country.
(Basis forcustoms valuation andratesofcustoms duty)
Article3.Customsdutyshallbeimposedonimportedgoodsonthebasisofthevalueorquantity
thereof taken asthebasis forcustoms valuation, andtheratesofcustoms dutyshallbeasdescribed
intheAnnexed Tariff ofthisLaw.
(Simplified dutyratesonpersonal effects)
Article 3-2.Forthepurpose ofapplication ofthepreceding Article, theratesofcustoms duty
chargeable onpersonal effects which arebrought intoJapan byanyperson atthetimeofhisentry
intoJapan orareimported separately byhimasunaccompanied goods, asmaybeprescribed byaCabinet
Order, shall, notwithstanding theprovisions ofanyotherlawsrelating tocustoms duty, beasprescribed
inthelistofsimplified dutyrates, attached totheAnnexed Tariff, which havebeencomputed onthe
basisoftheconsolidated ratesofcustoms dutyandinternal excise taxes (i.e.theinternal excise taxes
asprovided forinsubparagraph (1)ofArticle 2(Definition) oftheLawConcerning Collection, etc.
ofInternal Excise Taxes onImported Goods (Law No.37of1995)), chargeable onimported goods.
However, theforegoing provisions shall notapply tothecasewhere thesaidperson notifies the
customhouse concerned totheeffect thathedoesnotwishtohaveanyofthegoods, which hehasbrought
intoJapan withhimatthetimeofhisentry, orimported intoJapan asunaccompanied goods, charged
inaccordance withthelistofthesimplified dutyrates.
2. Theprovisions ofthepreceding paragraph shallnotapply tothefollowing goods:
(1) Goods designated asduty-free andgoods exempted fromcustoms duty, inaccordance
withtheprovisions ofthisLaworanyother lawrelating tocustoms duty;
(2) Goods involved inanyoftheoffenses asspecified inChapter 10(Penal provisions)
oftheCustoms Law;
(3) Goods incommercial quantities, goods ofhighunitvalue andother goods, asmay
beprescribed byaCabinet Order, asbeing inappropriate tobesubject toapplicationG/SG/N/1/JPN/2
Page52
oftheratesofdutyasenumerated inthelistofsimplified dutyratesasprovided for
inthepreceding paragraph, taking intoaccount theeffect ondomestic industries, etc.
[This Article hasbeenamended andthetranslation oftheamended Article isyettobedone.]
(Principle fordetermining thecustoms value)
Article 4.Thevalue forcustoms purpose ofimported goods (hereinafter referred toas"customs
value") shall, except where thefirstsentence ofparagraph 2applies, bethepriceactually paidorpayable
byabuyer toorforthebenefit ofaseller forthesaidimported goods inimport transaction relating
tothesaidimported goods (excluding theamount ofcustoms dutyoranyother charges reduced or
refunded inthecountry ofexportation atthetimeoftheirexportation), plusthecostoftransport, etc.,
asenumerated below, totheextent thatitisnotincluded intheprice actually paidorpayable forthe
goods (hereinafter referred toasthe"transaction value"):
(1) Costoftransport, costofinsurance andother expenses incurred fortransport ofthe
saidimported goods totheportofimportation (referred toas"cost oftransport, etc.,
totheportofimportation" inthenextArticle andinparagraph 2ofArticle 4-3);
(2) Thefollowing commissions orexpenses, totheextent thattheyareincurred bythe
buyer intheimport transaction relating tothesaidimported goods:
(a)Brokerage andcommissions, except buying commissions;
(b)Thecostofcontainers, provided thattheyshallbeofthesame kindandvalue as
thecontainers usually usedforthesaidimported goods;
(c)Thecostofpacking thesaidimported goods;
(3) Thecostofthefollowing goods orservices outofthose supplied directly orindirectly
bythebuyer freeofcharge oratreduced costforuseinconnection withtheproduction
ofthesaidimported goods andtheimport transaction:
(a)Materials, parts orsimilar items incorporated inthesaidimported goods;
(b)Tools, molds orsimilar items usedintheproduction ofthesaidimported goods;
(c)Materials consumed intheproduction ofthesaidimported goods;
(d)Engineering, plans andsketches andother services relating totheproduction of
thesaidimported goods asmaybeprescribed byaCabinet Order;
(4) Thecostoftheuseofpatent, design ortrademark rightandsuchsimilar rights asmay
beprescribed byaCabinet Order (excluding therighttoreproduce theimported goods
inJapan), relating tothesaidimported goods, which thebuyer mustpay,directly or
indirectly, asacondition oftheimport transaction ofthesaidimported goods; and
(5) Theproceeds ofanysubsequent disposition oruseofthesaidimported goods bythe
buyer thataccrue directly orindirectly totheseller.G/SG/N/1/JPN/2
Page53
2. Where there exists anyofthecircumstances described inthefollowing subparagraphs in
connection withtheimport transaction relating totheimported goods, thecustoms value ofthesaid
imported goods shallbedetermined inaccordance withtheprovision ofArticle 4-2through Article 4-4:
(1) When there arerestrictions astothedisposition oruseofthesaidimported goods by
thebuyer (excluding restrictions astothegeographical areainwhich theimported
goods maybesoldbythebuyer andsuchother restrictions asmaybeprescribed by
aCabinet Order);
(2) When theimport transaction relating tothesaidimported goods issubject toacondition
thatthetransaction value ofthesaidimported goods isdetermined onthebasisofthe
quantity orpriceofgoods other thanthesaidimported goods, transacted between the
seller andthebuyer ofthesaidimported goods ortoanyother condition which makes
itdifficult todetermine thecustoms value ofthesaidimported goods;
(3) When thevalue oftheproceeds ofanysubsequent disposition oruseofthesaidimported
goods bythebuyer thataccrue directly orindirectly totheseller isunknown;
(4) When there exists specific relationship between abuyer andaseller (i.e.when there
aremutually appointed officers ordirectors inthebusiness conducted bythebuyer
andtheseller orwhen there issuchrelationship between thebuyer andseller asmay
beprescribed byaCabinet Order; thesame toapply hereinafter inthissubparagraph
andinparagraph 1ofArticle 4-3)andsuchspecific relationship isconsidered tohave
influenced thetransaction value ofthesaidimported goods.
However, thefirstsentence ofthisparagraph shall notapply tocases which come under
subparagraph (4)above where theimporter ofthesaidimported goods demonstrates, inaccordance
withtheprovisions ofaCabinet Order, thatthetransaction value ofthesaidimported goods isequivalent
ornearly approximate tothecustoms value ofidentical orsimilar goods (those exported toJapan on
orabout thesame dateasthesaidimported goods andproduced inthecountry ofproduction ofthe
saidimported goods; thesame toapply hereinafter inthisparagraph) tothesaidimported goods,
calculated inaccordance withtheprovisions ofthepreceding paragraph orArticle 4-3. Theabove
customs value oftheidentical orsimilar goods shallbethepriceafterappropriate adjustment hasbeen
made, inaccordance withtheprovisions ofaCabinet Order, astoanyprice difference between the
saidimported goods andtheidentical orsimilar goods arising fromdifferences intransaction stages,
transaction quantity orcostoftransport, etc.,asenumerated inanyofthesubparagraphs ofthesaid
paragraph, andinsuchother costsandcharges asmaybeprescribed byaCabinet Order. Withregard
tothecustoms value calculated under theprovisions ofthesaidparagraph, thereshallbeusedtocustoms
value ofthegoods identical orsimilar tothesaidimported goods inimport transaction between abuyer
andaseller whohavenospecific relationship asdescribed insubparagraph (4).
(Determination ofcustoms value onthebasis oftransaction value ofidentical orsimilar goods)
Article 4-2. When thecustoms value oftheimported goods cannot becalculated under the
provisions ofparagraph 1ofthepreceding Article orwhen thefirstsentence ofparagraph 2ofthe
saidArticle applies andifthere isavailable thetransaction value (i.e.thecustoms value which has
already beenaccepted under theprovisions ofparagraph 1ofthepreceding Article; thesame toapply
hereinafter inthisArticle) ofgoods identical orsimilar tothesaidimported goods (those exported
toJapan onorabout thesamedateasthesaidimported goods andproduced inthecountry ofproduction
ofthesaidimported goods; hereinafter inthisArticle referred toas"identical orsimilar goods"),
thecustoms value ofthesaidimported goods shallbethetransaction value oftheidentical orsimilar
goods (ifthetransaction values ofbothidentical andsimilar goods areavailable, thecustoms valueG/SG/N/1/JPN/2
Page54
ofthesaidimported goods shallbethetransaction value oftheformer). Inapplying theprovisions
ofthisArticle, thetransaction value oftheidentical orsimilar goods shallbethetransaction value
oftheidentical orsimilar goods inimport transaction atthesame transaction stage andsubstantially
inthesame quantity asinthecaseofthesaidimported goods (hereinafter inthisArticle referred to
as"identical orsimilar goods atthesame transaction stage andinthesame quantity"). Where there
isasignificant difference incostoftransport, etc.,totheportofimportation between thesaidimported
goods andtheidentical orsimilar goods inquestion atthesametransaction stageandinthesamequantity
arising fromdifferences indistances andmodes oftransport, thetransaction value oftheidentical or
similar goods inquestion shallbethetransaction value afternecessary adjustment ismade, asmay
beprescribed byaCabinet Order astoanypricedifference attributable tosuchsignificant differences.
2. Where there isnotransaction value oftheidentical orsimilar goods atthesame transaction
stage andinthesame quantity asprovided forinthepreceding paragraph, thetransaction value of
theidentical orsimilar goods asprovided forinthesaidparagraph shallbethetransaction value of
identical orsimilar goods afternecessary adjustment ismade, asmaybeprescribed byaCabinet Order,
astoanypricedifference between thesaidimported goods andtheidentical orsimilar goods inquestion
attributabletodifferencesintransactionstagesortransactionquantityanddifferencesincostsoftransport,
etc.,totheportofimportation.
(Determination ofcustoms value onthebasis ofdomestic selling price orcostofproduction)
Article 4-3. When thecustoms value oftheimported goods cannot becalculated under the
provisions ofthepreceding twoArticles andifthere isavailable adomestic selling price ofthesaid
imported goods (including thedomestic selling price ofthesaidimported goods received from the
customs withtheapproval oftheDirector-General ofCustoms under theprovisions ofparagraph 1
ofArticle 73(Receipt ofgoods prior toimport permit) oftheCustoms Law; thesame toapply
hereinafter inthisparagraph) oradomestic selling priceofgoods identical orsimilar tothesaidimported
goods (produced inthecountry ofproduction ofthesaidimported goods; thesametoapply hereinafter
inthisparagraph), thecustoms value ofthesaidimported goods shallbetheprice asdescribed inany
ofthefollowing subparagraphs inaccordance withtheclassification ofthedomestic selling prices
enumerated inthefollowing subparagraphs. (However, subparagraph (2)shall apply onlywhen
subparagraph (1)cannot beapplied andthattheimporter ofthesaidimported goods requests application
oftheprovisions ofsubparagraph (2)):
(1) Thedomestic selling priceofthesaidimported goods orofidentical orsimilar goods,
solddomestically toabuyer whohasnospecific relationship withaseller ofsuchgoods
inthesame nature andcondition asthose atthetimeofimport declaration (oratthe
timeasdescribed inanyofthesubparagraphs ofArticle 4(Exceptional dateof
determination ofobject fordutyassessment) oftheCustoms Law, inthecaseofthe
goods asenumerated inanyofthose subparagraphs; hereinafter inthissubparagraph
andinthenextsubparagraph referred toas"thedateofdetermination ofobject for
dutyassessment") onorabout thedateofdetermination ofobject fordutyassessment
withregard tothesaidimported goods. Price calculated afterdeducting thefollowing
commissions, etc.from thesaiddomestic selling price:
(a) Theusualcommissionsorprofits,andgeneralexpenses(excludingtheexpenses
asenumerated in(b)below) inconnection withthedomestic saleofimported
goods ofthesame classorkind(i.e.goods which fallwithin agroup orrange
ofgoods produced bythesame industry orindustry sector andwhich belong
tothesame classorkindastheimported goods; thesame toapply inthenext
paragraph) asthesaidimported goods;G/SG/N/1/JPN/2
Page55
(b) Theusual costsoftransport andinsurance andother associated costsincurred
forthetransport oftheimported goods oroftheidentical orsimilar goods
soldinthedomestic market from thetimeoftheir arrival attheportof
importation tothatofthedomestic sale;
(c) Thecustoms duties andother charges paidinJapan ontheimported goods
ortheimported goods ortheidentical orsimilar goods soldinthedomestic
market.
(2) Thedomestic selling price ofthesaidimported goods, solddomestically toabuyer
whohasnospecific relationship withaseller ofsuchgoods, afterfurther processing
afterthedateofdetermination ofobject fordutyassessment. Price calculated after
deducting fromthesaiddomestic selling pricethevalue added bysuchprocessing and
theamount ofcommissions, etc.,asenumerated in(a),(b)and(c)ofthepreceding
subparagraph.
2. When thecustoms value ofthesaidimported goods cannot becalculated under theprovisions
ofthepreceding paragraph andiftheproduction costofthesaidimported goods canbeconfirmed,
thecustoms value ofthesaidimported goods shallbetheprice ofthecostofproduction ofthesaid
imported goods, usual profit andgeneral expenses inconnection withsales forexport toJapan of
imported goods ofthesame classorkindproduced inthecountry ofproduction ofthesaidimported
goods, andcostoftransport, etc.,ofthesaidimported goods totheportofimportation.
3. When thecostofproduction ofthesaidimported goods canbeconfirmed andiftheimporter
ofthesaidimported goods sorequests, thecustoms value ofthesaidimported goods shallbecalculated
under theprovisions ofthepreceding paragraph, prior totheapplication ofparagraph 1above.
(Determination ofcustoms value ofspecial imported goods)
Article 4-4.When thecustoms value ofthesaidimported goods cannot becalculated under
theprovisions ofthepreceding three Articles, thecustoms value ofthesaidimported goods shallbe
thevalue calculated under theprovisions ofaCabinet Order ascorresponding tothecustoms value
calculated under theprovisions ofthese Articles.
(Determination ofcustoms value ofimported goods deteriorated ordamaged)
Article 4-5.When thecustoms value istobecalculated under theprovisions ofArticle 4to4-4
andifitisfound thatthesaidimported goods havedeteriorated orhavebeendamaged, inthelight
oftheterms andconditions oftheimport transaction, bythetimeofimport declaration (orbythetime
asdescribed insubparagraphs (2)to(8)ofArticle 4(Exceptional dateofdetermination ofobject for
dutyassessment) oftheCustoms Law, inthecaseofthegoods asenumerated inanyofthose
subparagraphs; hereinafter intheproviso toparagraph 1ofArticle 10referred toas"thetimeofimport
declaration, etc."), thecustoms value ofthesaidimported goods shallbethevalue calculated, after
deducting anamount equivalent tothedepreciation caused bysuchdeterioration ordamage from the
customs value calculated asifsuchdeterioration ordamage hadnotoccurred.
(Special rulefordetermination ofcustoms value ofaircargo, etc.)
Article 4-6.Incalculating thecustoms value under theprovisions ofArticle 4to4-4,ifthe
saidimported goods arethose transported byair,thecostoftransport andcostofinsurance incurred
fortransport totheportofimportation offreesamples (provided thecustoms value ofthesamples
doesnotexceed suchanamount asmaybeprescribed byaCabinet Order asasmall value, ifthecustomsG/SG/N/1/JPN/2
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value iscalculated onthebasis ofairfreight andinsurance) orofgoods theimportation ofwhich is
deemed tobeurgently necessary fordisaster relief, theprotection ofpublic hygiene oranyother similar
purposes andofsuchother similar goods asmaybeprescribed byaCabinet Order shallbecalculated
onthebasis ofcostoftransport andcostofinsurance fortheusual mode oftransport other thanby
air.
2. Incalculating thecustoms value under theprovisions ofArticles 4to4-4,ifthesaidimported
goods arethose brought intoJapan asaccompanied luggage byaperson entering Japan oranyother
goods theimport transaction ofwhich isconsidered tobeatthestage ofretail transaction, andifthey
aredeemed tobeforthepersonal useoftheimporter ofthesaidimported goods, thecustoms value
ofthesaidimported goods shallbethevalue atwhich theywould havebeenimported atthestage
ofusual wholesale transaction. Thefirstsentence ofthisparagraph shallapply mutatis mutandis to
thecasewhere thesaidimported goods areagifttoaperson whoisaresident inJapan andaredeemed
tobeforthepersonal useoftherecipient ofthegift.
(Foreign exchange rateusedforconversion ofcurrency)
Article 4-7. Incalculating thecustoms value under theprovisions ofArticles 4to4-6,the
conversion intoJapanese currency ofavalue expressed inforeign currency shallbemade onthebasis
oftheforeign exchange rateofthedateofimport declaration ofthesaidimported goods (oronthe
relevant dateasprescribed insubparagraph (1)ofArticle 5(Exceptions toapplicable laws and
regulations) oftheCustoms Law, ifthecustoms value istobecalculated forthegoods asenumerated
inthesaidsubparagraph).
2. Theforeign exchange rateasprescribed inparagraph (1)above shallbeestablished byaMinistry
ofFinance Ordinance.
(Mandate toCabinet Order)
Article 4-8. Matters other thanthose prescribed inArticle 4to4-7which arenecessary for
thecalculation ofthecustoms value oftheimported goods shallbeprescribed byaCabinet Order.
(Beneficial duty)
Article 5.With regard toanyimported products, which aretheproducts ofanycountry
(including anyterritory forming partofsuchcountry. Thisshallapply toArticle 5,paragraphs 1and
2ofthefollowing Article andparagraph 4ofArticle 9)andarenotentitled tothebenefit asprovided
forinspecial provisions ofanytreaty relating tocustoms duty, abenefit relating tocustoms duty, not
exceeding thebenefit asprovided forinsuchspecial provisions, maybeextended tosuchproducts,
asmaybeprescribed byaCabinet Order, specifying thecountry andproducts.
(Retaliatory duty, etc.)
Article 6.Inthecasewhere itisconsidered necessary toprotect benefit accrued toJapan directly
orindirectly under theMarrakesh Agreement Establishing theWorld Trade Organization (hereinafter
inthisArticle, thefollowing Article andArticle 9referred toas"theWTO Agreement") orattain the
objective oftheWTO Agreement, anyimported product which isexported from orpassing through
anycountry referred inthefollowing paragraph maybeimposed dutywithin thescope ofapproval
prescribed inthefollowing subparagraph, prescribed byaCabinet Order, inaddition tocustoms duty
chargeable atanapplicable rateintheAnnexed Tariff, inanamount equal toorlessthanthecustoms
value ofthesaidimported product, specifying thecountry andproduct. (1)Country oftheMember
oftheWorld Trade Organization, where there arecircumstances tobeconsidered tonullify orimpairG/SG/N/1/JPN/2
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thebenefit accruing toJapan directly orindirectly under theWTO Agreement ortoimpede anyobjective
oftheWTO Agreement; Approval bytheDispute Settlement Body tosuspend theapplication tosuch
country ofconcessions orother obligations prescribed under theprovision ofArticle 2ofthe
Understanding onRules andProcedures Governing theSettlement ofDisputes, (2)Country ofthe
Member oftheWorld Trade Organization, whohassubsidy programme prescribed under paragraph 2
ofArticle 8oftheAgreement onSubsidies andCountervailing Measures inAnnex 1AtotheWTO
Agreement (hereinafter inthisArticle andfollowing Article referred toas"theSubsidies and
Countervailing Measures Agreement") cause serious adverse effects tothedomestic industry; Approval
bytheCommittee onSubsidies andCountervailing Measures prescribed inArticle 24oftheSubsidies
andCountervailing Measures Agreement, regarding countermeasures against thesaidcountry in
accordance withtheprovisions ofArticle 9oftheSubsidies andCountervailing Measures Agreement.
2.With regard toanyimported products which areexported from orpassing through anyforeign
country, which treats anyvessel orarticle ofJapan oranyproducts exported fromorpassing through
theJapan lessfavourable thananyvessel orarticle ofanyother country oranyproducts exported from
orpassing through suchanother country, there maybeimposed uponsuchimported products aduty,
inaddition tocustoms dutychargeable atanapplicable rateintheAnnexed Tariff, inanamount equal
toorlessthanthecustoms value ofthesaidimported products, asmaybeprescribed byaCabinet
Order, specifying thecountry andproducts. However, itisnotapplicable forthecasewhere itshall
beentrusted toprocedures under theDispute Settlement Body inaccordance withparagraph 1ofthe
preceding Article. 3.Inaddition tomatters asprovided forthepreceding twoparagraphs, anynecessary
matters relating totheapplication ofthese provisions shallbeprescribed byaCabinet Order.
(Countervailing duty)
Article 7.Where thereisafactthattheimportation ofproducts towhich subsidies aregranted,
directly orindirectly, toproduction orexport inanyforeign country causes orthreatens tocause material
injury todomestic industry (hereinafter inthisArticle interpreted asreferring toanindustry which
produces likeproducts ofsuchimported product towhich thesaidsubsidies aregranted) ormaterially
retards theestablishment ofdomestic industry (hereinafter inthisArticle referred toas"thefactof
material injury, etc.todomestic industry"), ifitisfound necessary toprotect suchdomestic industry,
asmaybeprescribed byaCabinet Order, specifying theproduct, exporters orproducers (hereinafter
inthisArticle andnextArticle referred toas"suppliers") ofsuchproduct, orexporting country or
thecountry oforigin (including anyterritory forming partofsuchcountry, hereinafter inthisArticle
andfollowing Article referred toas"supplying country") andtheperiod oftime(notexceeding
fiveyears), adutymaybeimposed inaddition tocustoms dutychargeable atanapplicable rateinthe
Annexed Tariff, inanamount equal toorlessthantheamount ofthesubsidies (hereinafter inthisArticle
referred toas"countervailing duty") totheproduct which isimported within thespecified period
regarding thespecified supplier orsupplying country (hereinafter inthisArticle referred toas"specified
product) andwhich isimported during thespecific period. However, itisnotthecasewhen themeasure
under paragraph 1ofthepreceding Article (limited tomeasures under subparagraph (1))istaken on
theground ofmaterial injury, etc.toanyindustry inJapan byimportation oftheproduct towhich
subsidies aregranted orwhen themeasure under theprovision ofthesaidsubparagraph which is
approved bytheDispute Settlement Body istaken.
2. InthisArticle, "subsidies" means subsidies asprovided forinArticle 1oftheAgreement on
Subsidies andCountervailing Measures except subsidies which arenotsubject tothecountervailing
dutyinaccordance withtheprovisions ofArticle 13oftheAgreement onAgriculture andtheprovisions
of8.1and8.2ofArticle 8oftheAgreement onSubsidies andCountervailing Measures Agreement.
3. Inaddition totheprovisions ofparagraph 1,inthecases where specified product towhich
subsidies weregranted, directly orindirectly, toproduction orexport inanyforeign country, inthe
caseoftheproduct asenumerated insubparagraph (3),towhich subsidies weregranted, directly orG/SG/N/1/JPN/2
Page58
indirectly, toexport incontradiction totheprovisions oftheAgreement, towhich ameasure asprovided
forinparagraph 10(hereinafter inthisparagraph referred toas"provisional measure") wasapplied,
andhavebeenimported within theperiod asenumerated inanyofthefollowing subparagraphs in
accordance withtheclassification oftheproduct, theGovernment mayimpose, asmaybeprescribed
byaCabinet Order, countervailing dutyinaddition tocustoms dutychargeable atanapplicable rate
intheAnnexed Tariff, uponsuchproduct. Inthiscase,theamount ofcountervailing dutywhich may
beimposed uponsuchproduct imported during theperiod forwhich theprovisional measure hasbeen
applied, shallnotexceed theamount ofsecurity which wasordered tobedeposited inaccordance with
theprovisions ofparagraph 10.
(1) Aproduct inrespect ofwhich itisfound thattheimportation thereof hascaused material
injury todomestic industry (including those products inrespect ofwhich itisfound
thattheimportation thereof would havecaused material injury todomestic industry
unless theprovisional measure wastaken, hereinafter inthefollowing subparagraph
referred toasthesame andexcluding theproduct falling within subparagraphs (2)
and(3)); theperiod forwhich theprovisional measure hasbeentaken;
(2) Aproduct upon which aprovisional measure hasbeentaken byreasons ofviolation
ofundertakings accepted inaccordance withparagraph 9(including thecasewhere
theprovision ofthesaidparagraph shallapply mutatis mutandis inparagraphs 21and
25,andwhere paragraph 21shallapply mutatis mutandis inparagraph 28.Thisshall
apply inparagraphs 10and28)andinrespect ofwhich itistoandthattheimportation
thereof hascaused material injury todomestic industry; theperiod commencing on
thedatewhich is90daysprior tothedateofapplication oftheprovisional measure
orthedateofviolation ofundertakings offered, whichever islater, andending onthe
dateimmediately preceding thedateofthespecification wasmade inaccordance with
theprovisions ofparagraph 1;
(3) Aproduct inrespect ofwhich itisfound thatthemassive imports thereof inashort
period havecaused injury todomestic industry which itwould bedifficult torepair
andthatisnecessary toimpose acountervailing dutyinorder topreclude suchinjury
fromrecurring; theperiod commencing onthedatewhich is90dayspriortothedate
ofapplication oftheprovisional measure andending onthedateimmediately preceding
thedayonwhich specification wasmade inaccordance with theprovisions of
paragraph 1.
4. Countervailing duties under thepreceding paragraph shallbepaidbytheimporter oftheproduct
onwhich thecountervailing duties aretobeimposed.
5. Anyperson whohasaninterest indomestic industry under paragraph 1may, asmaybe
prescribed byaCabinet Order, request theGovernment toimpose countervailing duties ontheproduct
submittingtotheGovernmentsufficientevidenceconcerningthefactofimportationofsubsidizedproduct
andthefactofmaterial injury, etc.todomestic industry, caused bysuchimportation.
6. TheGovernment shall, upon arequest made under theprovisions ofthepreceding paragraph
orwhen there issufficient evidence concerning thefactofimportation ofthesubsidized product and
thefactofmaterial injury, etc.todomestic industry, caused bysuchimportation, initiate, ifitisfound
tobenecessary, aninvestigation astowhether those factsexist.
7. Theinvestigation under thepreceding paragraph shallbeconcluded within oneyearafterthe
dateofitsinitiation. However, theperiod maybeextended atmostsixmonths ifdeemed necessary
forspecial reasons.G/SG/N/1/JPN/2
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8. Inthecasewhere aninvestigation hasbeeninitiated under paragraph 6,theauthorities of
supplying country ortheexporter oftheproduct covered bytheinvestigation mayoffer tothe
Government suchundertakings asdescribed inanyofthefollowing subparagraphs inaccordance with
theclassification enumerated inthefollowing subparagraphs (inthecaseofanundertaking tobeoffered
inaccordance withsubparagraph (2),itmust beaccompanied bytheagreement oftheauthorities of
exporting country oftheproduct concerned:
(1) Authorities ofsupplying country ofproduct covered bythesaidinvestigation;
undertakings toeliminate orlimitthesubsidies withregard totheproduct concerned
ortotakemeasures which aredeemed appropriate toeliminate theeffect ofthesubsidies
ondomestic industry;
(2) exporter oftheproduct covered bythesaidinvestigation; undertakings torevise prices
oftheproduct sothatitmaybedeemed thattheinjurious effect ofthesubsidies with
regard totheproduct concerned ondomestic industry iseliminated.
9. Where undertakings asprovided forinanyofsubparagraphs ofthepreceding paragraph are
offered anditispossible topresume thefactsofimportation ofthesubsidized product andofmaterial
injury todomestic industry caused bythesaidimportation, theGovernment mayaccept them (valid
period should belimited within fiveyears). Incases where theundertakings offered aresoaccepted,
theGovernment mayterminate theinvestigation under paragraph 5,except where theauthorities of
exporting country oftheproduct covered bysuchundertakings wishtocomplete theinvestigation under
theprovision ofparagraph 6.
10. TheGovernment may,nosooner than60daysfromthedateoftheinitiation oftheinvestigation,
if,onthebasisofsufficient evidence (orbestinformation available inthecaseofviolation ofundertaking
accepted under theprovision ofthepreceding paragraph), itcanbepresumed thatthere arethefact
oftheimportation ofthesubsidized product andthefactofthematerial injury, etc.tothedomestic
industry caused bysuchimportation andifitisfound necessary toprotect suchdomestic industry,
asmaybeprescribed inCabinet Order, giveanorder totheperson whoistoimport theproduct, to
deposit asecurity deemed tobeequivalent totheamount ofsubsidies toensure thecollection of
countervailing duties tobeimposed inaccordance withtheprovision ofparagraph 3,evenbefore the
completion oftheinvestigation, specifying theproduct, supplier orsupplying country ofsuchproduct
andperiod (notexceeding 4months), impose aduty, withregard tothespecified supplier orsupplying
country imported during thespecified period.
11. TheGovernment shall, ifitaccepts theundertakings inaccordance withtheprovision of
paragraph 9withregard totheproduct forwhich themeasure under theprovision ofthepreceding
paragraph wastaken, withdraw themeasure, asmaybeprescribed byaCabinet Order.
12. When aninvestigation under paragraph 6hasbeencompleted, theGovernment shallpromptly
release thesecurity deposited inaccordance withtheprovisions ofparagraph 10,except where a
countervailing dutyshallbeimposed inaccordance withtheprovisions ofparagraph 3.Theamount
ofthesecurity exceeding theamount ofthecountervailing dutytobeimposed under theprovisions
ofparagraph 3shalllikewise bereleased.
13. Where acountervailing dutyhasbeenimposed specifying thesupplying country inaccordance
withtheparagraph 1,other thanthesupplier ofthespecified product whoarenotsubject tothe
investigation under paragraphs 6and19(hereinafter inthisArticle referred toas"supplier notsubject
toaninvestigation") may,asmaybeprescribed inCabinet Order, submit totheGovernment sufficient
evidence withregard tothefactthattheamount ofthecountervailing dutyimposed under theprovision
ofparagraph 1ontheproduct ofsuchnewsupplier isdifferent fromtheamount oftheactual amountG/SG/N/1/JPN/2
Page60
ofsubsidy ofsuchproduct, andrequest theGovernment tomodify orabolish thecountervailing duty
imposed upon theproduct regarding thenewsupplier.
14. TheGovernment shall, upon arequest made under theprovision ofthepreceding paragraph
orwhen there issufficient evidence withregard tothefactthattheamount ofthecountervailing duty
imposed under theprovision ofparagraph 1ontheproduct regarding thenewsupplier isdifferent from
theactual amount ofthesubsidies withregard totheproduct anditisfound tobenecessary, initiate
aninvestigation astowhether suchfactexists.
15. Theprovisionofparagraphs7,8(excludingsubparagraph(1))and9shallapplymutatis mutandis
inthecases where theinvestigation under thepreceding paragraph isinitiated. Inthese cases, the
reference to"within oneyear" inthefirstsentence ofparagraph 7shallbedeemed toberead"within
oneyearonaccelerated basis".
16. Where itisfound thatthereisadifference between theamount ofcountervailing dutyimposed
uponsuchproduct inaccordance withtheprovision ofparagraph 1andtheactual amount ofsubsidies
withregard totheproduct ofthesupplier notsubject toaninvestigation under paragraph 14,the
Governmentmay,asmaybeprescribedinCabinetOrder,modifyorabolishtoimposethecountervailing
dutyimposed under theprovision ofthesaidparagraph, upon theproduct regarding thesupplier not
subject toaninvestigation.
17. Where there aresome changes incircumstances withregard tothespecified product as
enumerated below, theGovernment may,ifitisfound tobenecessary, asmaybeprescribed inCabinet
Order, modify orabolish thecountervailing dutyimposed under theprovision ofparagraph 1.(To
modify, inthiscase, include modifying thespecified period under theprovision ofparagraph 1.This
shall apply inthisparagraph andthefollowing paragraph.) Where theGovernment modifies the
countervailing dutyimposed under theprovision ofparagraph 1,itmayextend thespecified period
under theprovision ofthesaidparagraph, ifitisfound tobenecessary, inconsideration ofbothchanges
incircumstances asenumerated inthefollowing subparagraphs:
(1) Changes incircumstances withregard tothesubsidy regarding thespecified product;
(2) Changes incircumstances withregard tothefactofmaterial injury, etc.tothedomestic
industry caused bytheimportation ofthespecified product.
18. Asupplier ofthespecified product oritsassociation, animporter ofthespecified product or
itsassociation, oraperson whohasaninterest inthedomestic industry under theprovision of
paragraph 1,provided thatoneyearhaselapsed since thefirstdateofthespecified period under the
provision ofthesaidparagraph, may,asmaybeprescribed inCabinet Order, submit totheGovernment
sufficient evidence withregard totheexistence ofchanges incircumstances onthespecified product
asenumerated insubparagraph (1)or(2)ofthepreceding paragraph, andrequest theGovernment
tomodify orabolish thecountervailing dutyimposed under theprovision ofparagraph 1.
19. TheGovernment shall, upon arequest made under theprovision ofthepreceding paragraph
orwhen there issufficient evidence with regard tochanges incircumstances asenumerated in
subparagraphs (1)or(2)ofparagraph 17,initiate, ifitisfound tobenecessary, aninvestigation as
towhether these changes incircumstances exist.
20. Theinvestigation under thepreceding paragraph shallbeconcluded within oneyearafterthe
dateofitsinitiation. However, theperiod maybeextended tosuchanextent asdeemed necessary
forspecial reasons.G/SG/N/1/JPN/2
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21. Theprovisions ofparagraphs 8and9shall apply mutatis mutandis tothecases where the
investigation under paragraph 19isinitiated.
22. Where thecountervailing dutyisimposed inaccordance withparagraph 1,ifitisfound that
theimportation ofthespecified product towhich subsidy isgranted andthefactofthematerial injury,
etc.tothedomestic industry caused bysuchimportation threatens tocontinue orrecur aftertheexpiry
oftheperiod specified under theprovision ofthesaidparagraph, theGovernment may, asmaybe
prescribed inCabinet Order, extend thespecified period.
23. Aperson whohasaninterest inthedomestic industry under theprovision ofparagraph 1,
maynotlaterthanthedateoneyearprior tothelastdateoftheperiod specified under theprovision
ofthesaidparagraph, asmaybeprescribed inCabinet Order, submit totheGovernment sufficient
evidence withregard tothethreat thattheimportation ofthespecified product towhich subsidies are
granted andthefactofthematerial injury, etc.tothedomestic industry caused bysuchimportation
would belikely tocontinue orrecur aftertheexpiry oftheperiod specified under theprovision of
thesaidparagraph, andrequest theGovernment toextend suchspecified period.
24. TheGovernment shall, upon arequest made under theprovision ofthepreceding paragraph
orwhen thereissufficient evidence withregard tothethreat thattheimportation ofthespecified product
towhich subsidies aregranted andthefactofthematerial injury, etc.tothedomestic industry caused
bysuchimportation would belikely tocontinue orrecur aftertheexpiry oftheperiod specified under
theprovision ofparagraph 1,initiate, ifitisfound tobenecessary, aninvestigation astowhether the
threat exists.
25. Theprovisions ofparagraphs 8,9and20shallapply mutatis mutandis tothecases where the
investigation under thepreceding paragraph isinitiated.
26. Thespecified product tobeimported during theperiod from thedateoftheinitiation tothe
dateoftheconclusion oftheinvestigation under paragraph 24shallberegarded asaproduct imported
during theperiod specified under theprovision ofparagraph 1andtheprovision ofparagraph 1shall
apply tosuchspecified product.
27. Where theperiod specified under theprovision ofparagraph 1isextended inaccordance with
theprovisions ofparagraphs 17or22,suchextension oftheperiod shallbelimited tofiveyears from
thedateasenumerated ineachofthefollowing subparagraphs inaccordance withtheclassification
ofthecases. Thisshallapply tothecasewhere theGovernment extends theextended period, the
extended period shalllikewise betreated:
(1) Where theGovernment extends theperiod inaccordance with theprovision of
paragraph 17;thedateofthecompletion oftheinvestigation under paragraph 19;
(2) where theGovernment extends theperiod inaccordance with theprovision of
paragraph 22;thedateofthecompletion oftheinvestigation under paragraph 24.
28. Theprovisions ofparagraphs 17to21andthepreceding paragraph (excluding subparagraph (2))
shallapplymutatismutandistothecaseswheretheundertakingacceptedinaccordancewiththeprovision
ofparagraph 9ismodified (including themodification ofthevalid period).
29. Where there isafactthattheamount ofthecountervailing dutypaidbytheimporter ofthe
specified product exceeds theamount oftheactual subsidies ofthespecified product, theimporter may,
asmaybeprescribed inCabinet Order, submit totheGovernment sufficient evidence withregard toG/SG/N/1/JPN/2
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suchfact,andrequest theGovernment toreimburse thecountervailing dutyequivalent tosuchanexcess
amount (hereinafter referred toas"reimbursable amount").
30. TheGovernment shall, uponrequest under theprovision ofthepreceding paragraph, investigate
astowhether thereimburseable amount exists andother necessary matters, andonthebasis ofthe
investigation, without delay, reimburse thecountervailing dutywithin thelimitoftheamount requested,
ornotify theperson whorequested thatthere isnoground ofrequest to.
31. Theinvestigation under thepreceding paragraph shallbeconcluded within oneyearfromthe
dateoftherequest under theparagraph 29.However, theperiod maybeextended atmostsixmonths
ifdeemed necessary forspecial reasons.
32. Theprovision ofparagraphs 2to7Article 13oftheCustoms Law(reimbursement and
appropriation) shall apply mutatis mutandis tothecases where theGovernment reimburses the
countervailing dutyinaccordance withtheprovisions ofparagraphs 29tothepreceding paragraph.
Inthese cases, theperiod under theprovision ofparagraph 2ofArticle 13oftheCustoms Lawthat
provides forthebasis forthecalculation ofadditional refund money under theprovision ofthesaid
paragraph, shallbecalculated from thefollowing dateoftherequest forreimbursement under the
provision ofparagraph 29.
33. Inaddition tothematters asprovided forineachpreceding paragraph, anynecessary matters
ontheapplication ofcountervailing dutyshallbeprescribed byaCabinet Order.
(Anti-dumping duty)
Article 8.Inthecasewhere there isthefactthatimportation ofdumped product (dumping
means, inthisArticle, asaleofproduct forexport ataprice lessthantheprice ofthelikeproduct
intheordinary course oftrade destined forconsumption intheexporting country oranyother similar
priceprescribed byaCabinet Order (hereinafter inthisArticle referred toas"normal price")), causes
orthreatens tocause material injury toadomestic industry (thatproduces thelikeproducts ofthedumped
product, hereinafter inthisArticle referred toasthesame) ormaterially retards theestablishment of
ordomestic industry (hereinafter inthisArticle referred toasthe"factofmaterial injury, etc.tothe
domestic industry"), ifitisfound necessary toprotect suchdomestic industry, asmaybeprescribed
byaCabinet Order, specifying theproduct, supplier orsupplying country ofsuchproduct andaperiod
oftime(notexceeding fiveyears), aduty(hereinafter inthisArticle referred toas"anti-dumping duty"),
inaddition tocustoms dutychargeable atanapplicable rateintheAnnexed Tariff maybeimposed
upon thespecified product which isconcerned withthespecified supplier orsupplying country
(hereinafter inthisArticle referred toas"specified product") tobeimported during thespecified period,
inanamount equivalent toorlessthanthedifference between thenormal price andthedumped price
(hereinafter inthisArticle referred toas"dumping margin") ofsuchproduct.
2. Inaddition tothepreceding paragraph, inthecasewhere thereisaspecified product onwhich
ameasure under theprovisions ofparagraph 9(hereinafter inthisparagraph referred toas"provisional
measure") hasbeentaken, andwhich hasbeenimported during theperiod asenumerated inanyof
thefollowing subparagraphs inaccordance withtheclassification oftheproduct, asmaybeprescribed
byaCabinet Order, ananti-dumping dutyinaddition tocustoms dutychargeable atanapplicable rate
intheAnnexed Tariff maybeimposed uponsuchproduct. Inthiscase,theamount ofsuchanti-dumping
dutywhich maybeimposed upon suchspecified product imported during theperiod forwhich the
provisional measure hasbeentaken, shallnotexceed theamount oftheprovisional dutythathasbeen
imposed under theprovisions ofsubparagraph (1)ofthesaidparagraph ortheamount ofsecurity that
hasbeenordered tobedeposited under theprovisions ofsubparagraph (2)ofthesaidparagraph:G/SG/N/1/JPN/2
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(1) Aproduct inrespect ofwhich itwasfound thattheimportation thereof caused material
injury tothedomestic industry (including those products inrespect ofwhich itwas
found thattheimportation thereof would cause material injury tothedomestic industry
unless theprovisional measure wastaken, hereinafter inthefollowing subparagraph
referred toasthesame) (excluding theproduct falling within subparagraphs (2)or(3));
theperiod forwhich theprovisional measure hasbeentaken;
(2) aproduct uponwhich aprovisional measure hasbeentaken byreason ofviolation of
undertakings accepted inaccordance withparagraph 8(including thecases where the
provisions ofthesaidparagraph isapplied mutatis mutandis toparagraphs 14,24and
28,andwhere theprovisions ofparagraph 24isapplied mutatis mutandis toparagraph
31.Thisshallapply inparagraphs 9and31)andinrespect ofwhich itisfound that
theimportation thereof hascaused material injury todomestic industry; theperiod
commencing onthedate90daysprior tothedateoftheinitiation oftheprovisional
measure orthedateofviolation ofundertakings whichever islater, andending onthe
dateimmediately preceding thedateofthespecification under theprovisions ofthe
preceding paragraph;
(3) Aproduct inrespect ofwhich itisfound thatthemassive imports thereof inashort
period havecaused thefactofmaterial injury, etc.tothedomestic industry, andwhich
fallswithin anyofthecategories ofproduct asenumerated inanyofthefollowing
subparagraphs andinrespect ofwhich itisfound difficult topreclude thefactofmaterial
injury, etc.tothedomestic industry fromrecurring onlybeimposing theanti-dumping
dutyprescribed intheprovisions ofthepreceding paragraph, inthelightofthetiming
oftheimportation andthequantity oftheproduct imported andtheothercircumstances;
theperiod commencing onthedate90daysprior tothedateoftheinitiation ofthe
provisional measure orthedateoftheinitiation oftheinvestigation whichever isthe
later, andending onthedateimmediately preceding thedayofthespecification under
theprovision ofthepreceding paragraph:
(a) Aproduct which hasinthepastcaused thefactofmaterial injury, etc.tothe
domestic industry bythereason ofdumping;
(b) aproduct inrespect ofwhich itisfound thattheimporter was,orshould have
been, aware thattheproduct wasdumped andthatthefactofmaterial injury,
etc.tothedomestic industry would becaused bytheimportation thereof.
3. Theanti-dumping dutyunder theprovisions ofthepreceding paragraph shallbepaidbythe
importer oftheproduct upon which theanti-dumping dutyistobeimposed. Inthiscase, the
anti-dumping dutyshallbeconsidered tohavebeenpaid, iftheprovisional dutyimposed upon the
product under theprovisions ofsubparagraph (1)ofparagraph 9waspaid.
4. Aperson whohasaninterest inthedomestic industry under theprovisions ofparagraph 1
may,asmaybeprescribed inCabinet Order, submit totheGovernment sufficient evidence withregard
tothefactoftheimportation ofthedumped product andthefactofthematerial injury, etc.tothe
domestic industry caused bysuchimportation, andrequest theGovernment toimpose ananti-dumping
dutyupon suchproduct.
5. TheGovernment shall, uponarequest made under theprovisions ofthepreceding paragraph
orwhen there issufficient evidence withregard tothefactoftheimportation ofthedumped product
andthefactofthematerial injury, etc.tothedomestic industry caused bysuchimportation, initiate,
ifitisfound tobenecessary, aninvestigation astowhether those factsexist.G/SG/N/1/JPN/2
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6. Theinvestigation under thepreceding paragraph shallbeconcluded within oneyearafterthe
dateofitsinitiation. However, theperiod maybeextended atmostsixmonths ifitisfound necessary
forspecial reasons.
7. When aninvestigation under paragraph 5hasbeeninitiated, theexporter oftheproduct under
theinvestigation mayoffertotheGovernment anundertaking torevise prices ofsuchproduct sothat
itmaybefound thattheinjurious effect ofthedumping ofsuchproduct onthedomestic industry is
eliminated ortocease exports ofsuchproduct.
8. When anundertaking under theprovisions ofthepreceding paragraph isoffered, andonthe
basisofsufficient evidence, itcanbepresumed thatthere isthefactoftheimportation ofthedumped
product andthefactofthematerial injury, etc.tothedomestic industry caused bysuchimportation,
theGovernment mayaccept suchanundertaking (aslongasthetermofvalidity ofwhich islessthan
fiveyears). Where theGovernment hasaccepted theundertakings, theGovernment maysuspend the
investigation under paragraph 5,unless theexporter oftheproduct regarding theundertaking wishes
tocomplete theinvestigation under thesaidparagraph.
9. TheGovernment may,nosooner than60daysfromthedateoftheinitiation oftheinvestigation,
if,onthebasisofsufficient evidence (orbestinformation available inthecaseofviolation ofundertaking
accepted under theprovisions ofthepreceding paragraph), itcanbepresumed thatthere isthefact
oftheimportation ofthedumped product andthefactofthematerial injury, etc.tothedomestic industry
caused bysuchimportation andifitisfound necessary toprotect suchdomestic industry, asmaybe
prescribed inCabinet Order, takeanymeasure ofthefollowing against theperson whoistoimport
theproduct,evenbeforethecompletionoftheinvestigation,specifyingtheproduct,supplierorsupplying
country ofsuchproduct andperiod (notexceeding 9months asprescribed inCabinet Order), with
regard tothespecified product relating tothespecified supplier orsupplying country which istobe
imported during thespecified period:
(1) Toimpose aprovisional dutytheamount ofwhich isequivalent toorlessthanthe
difference between suchaprice aspresumed tobethenormal price andsuchaprice
aspresumed tobethedumped price; or
(2) toorder todeposit asecurity theamount ofwhich isequivalent totheamount ofthe
provisional dutyunder thepreceding subparagraph, inorder toensure thecollection
ofanti-dumping dutyimposed under theprovisions ofparagraph 2.
10. TheGovernment shall, ifitaccepts theundertakings inaccordance withtheprovisions of
paragraph 8withregard totheproduct forwhich themeasure under theprovisions ofthepreceding
paragraph wastaken, withdraw themeasure, asmaybeprescribed byaCabinet Order.
11. When theinvestigation under paragraph 5hasbeenconcluded, theGovernment shallpromptly
reimbursetheprovisionaldutypaidorreleasethesecuritydepositedundertheprovisionsofparagraph9,
unless itimposes anti-dumping dutyinaccordance withtheprovisions ofparagraph 2.Theamount
oftheprovisional dutypaidorthesecurity deposited under theprovisions ofthepreceding paragraph
exceeding theamount ofanti-dumping dutyimposed under theprovisions ofparagraph 2shalllikewise
bereimbursed orreleased.
12. Anewsupplier (hereinafter inthisArticle interpreted asasupplier, when ananti-dumping
dutyhasbeenimposed specifying thesupplying country inaccordance withparagraph 1,other than
thesupplier ofthespecified product imported inJapan during theperiod subject totheinvestigation
under paragraphs 5and22andother thantheperson related tosuchsupplier asprescribed inCabinet
Order) may, asmaybeprescribed inCabinet Order, submit totheGovernment sufficient evidenceG/SG/N/1/JPN/2
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withregard tothefactthattheamount oftheanti-dumping dutyimposed under theprovisions of
paragraph 1ontheproduct ofsuchnewsupplier isdifferent from theamount oftheactual dumping
margin ofsuchproduct, andrequest theGovernment tomodify orabolish theanti-dumping dutyto
beimposed upon theproduct regarding thenewsupplier.
13. TheGovernment shall, upon arequest made under theprovisions ofthepreceding paragraph
orwhen there issufficient evidence withregard tothefactthattheamount oftheanti-dumping duty
imposed under theprovisions ofparagraph 1ontheproduct regarding thenewsupplier isdifferent
fromtheamount oftheactual dumping margin oftheproduct anditisfound tobenecessary, initiate
aninvestigation astowhether suchfactexists.
14. Theprovisions ofparagraphs 6to8shallapply mutatis mutandis tointhecases where the
investigation under thepreceding paragraph isinitiated. Inthese cases, thereference to"within one
year" inthefirstsentence ofparagraph 6shallbedeemed toberead"within oneyearonaccelerated
basis".
15. When theinvestigation under paragraph 12isinitiated, notwithstanding theprovisions of
paragraph 1,theanti-dumping dutyunder theprovisions ofsaidparagraph 1shallnotbeimposed on
theproduct which isexported orproduced bythenewsupplier regarding suchinvestigation andimported
from thedateoftheinitiation tothedateoftheconclusion ofsuchinvestigation (hereinafter in
paragraphs 17and18referred toas"during theinvestigation period"), andunless theanti-dumping
dutyshall, imposed under theprovision ofparagraph 1ismodified orcontinued toimpose inaccordance
withtheprovisions ofthefollowing paragraph, theanti-dumping dutyimposed under theprovision
ofparagraph 1onproduct which isexported orproduced bythenewsupplier regarding such
investigation, asmaybeprescribed byaCabinet Order, shallbeabolished fromthedateoftheinitiation
ofsuchinvestigation.
16. When adumping margin withregard totheproduct relating tothenewsupplier subject tothe
investigation under paragraph 13isfound, theanti-dumping dutyimposed under theprovision of
paragraph 1may, asmaybeprescribed inCabinet Order, specifying theperiod (notexceeding the
period fromthedateofinitiation oftheinvestigation tothelastdateoftheperiod specified inaccordance
withtheprovisions ofparagraph 1withregard totheanti-dumping dutyimposed under theprovisions
ofthesaidparagraph), bemodified orcontinued toimpose theanti-dumping dutyimposed under the
provision ofparagraph 1,ontheproduct regarding thenewsupplier which isimported during the
specified period.
17. Inthecases ofthepreceding paragraph, theanti-dumping dutytobeimposed upon product
thatareimported during theinvestigation period shallbepaidbytheimporter ofsuchproduct upon
which theanti-dumping dutyistobeimposed. Theamount ofsuchanti-dumping dutyshallbelimited
totheamount equivalent tothatofanti-dumping dutyunder theprovision orparagraph 1which shall
notbeimposed inaccordance withtheprovision ofparagraph 15.
18. WhentheGovernment,inaccordancewiththeprovisionsofparagraph16,modifiesorcontinues
toimpose theanti-dumping dutyimposed under theprovisions ofparagraph 1inaccordance withthe
provision ofparagraph 16,inorder toensure thecollection ofsuchanti-dumping dutyunder the
provisions ofparagraph 1which ismodified orcontinued, theGovernment may, asmaybeprescribed
byaCabinet Order, order theperson whoistoimport product which isexported orproduced bythe
newsupplier relating totheinvestigation under paragraph 13during theinvestigation period todeposit
security theamount ofwhich isequivalent toorlessthantheamount oftheanti-dumping dutyimposed
under theprovisions ofparagraph 1which shallnotbeimposed upon theproduct inaccordance with
theprovisions ofparagraph 15.G/SG/N/1/JPN/2
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19. When theinvestigation under paragraph 13hasbeenconcluded, andtheGovernment abolishes
theanti-dumping dutyimposed under theprovisions ofparagraph 1inaccordance withtheprovisions
ofparagraph 15,itshallpromptly release thesecurity deposited under theprovisions ofthepreceding
paragraph. Inthecasewhere theamount ofthesecurity deposited under theprovisions ofthepreceding
paragraph exceeds theamount ofanti-dumping dutyimposed under theprovisions ofparagraph 1and
modified inaccordance withtheprovisions ofparagraph 15,suchanexcess amount ofthesecurity
shalllikewise bereleased.
20. Whentherearesomechangesincircumstanceswithregardtothespecifiedproductasenumerated
below, theGovernment may, ifitisfound tobenecessary, asmaybeprescribed byaCabinet Order,
modify orabolish theanti-dumping dutyimposed under theprovisions ofparagraph 1(tomodify, in
thiscase,include modifying thespecified period under theprovisions ofparagraph 1.Thisshallapply
inthisparagraph andthefollowing paragraph). When theGovernment modifies theanti-dumping
dutyimposedundertheprovisionsofparagraph1,itmayextendthespecifiedperiodundertheprovisions
ofthesaidparagraph, ifitisfound tobenecessary inconsideration ofbothchanges incircumstances
asenumerated inthefollowing subparagraphs:
(1) Changes incircumstances withregard tothedumping regarding thespecified product;
(2) changes incircumstances withregard tothefactofmaterial injury, etc.tothedomestic
industry caused bytheimportation ofthespecified product.
21. Asupplier ofthespecified product orassociation thereof, animporter ofthespecified product
orassociation thereof, oraperson whohasaninterest inthedomestic industry under theprovisions
ofparagraph 1,provided thatoneyearhaselapsed since thefirstdateofthespecified period under
theprovisions ofthesaidparagraph, asmaybeprescribed byaCabinet Order, maysubmit tothe
Government sufficient evidence withregard totheexistence ofchanges incircumstances onthespecified
product asenumerated insubparagraphs (1)or(2)ofthepreceding paragraph, andrequest the
Government tomodify orabolish theanti-dumping dutyimposed under theprovision ofparagraph 1.
22. TheGovernment shall, upon arequest made under theprovisions ofthepreceding paragraph
orwhen there issufficient evidence with regard tochanges incircumstances asenumerated in
subparagraphs (1)or(2)ofparagraph 20,initiate, ifitisfound tobenecessary, aninvestigation as
towhether those changes incircumstances exist.
23. Theinvestigation under thepreceding paragraph shallbeconcluded within oneyearafterthe
dateofitsinitiation. However, theperiod maybeextended ifdeemed tobenecessary forspecial reasons.
24. Theprovisions ofparagraphs 7and8shallapply mutatis mutandis tothecases where the
investigation under paragraph 22isinitiated.
25. When theanti-dumping dutyisimposed inaccordance withparagraph 1,ifitisfound that
theimportation ofthespecified dumped product andthefactofthematerial injury, etc.tothedomestic
industry caused bysuchimportation threat tocontinue orrecur aftertheexpiry oftheperiod specified
under theprovisions ofthesaidparagraph, theGovernment may, asmaybeprescribed byaCabinet
Order, extend thespecified period.
26. Aperson whohasaninterest inthedomestic industry under theprovision ofparagraph 1may,
nolaterthanthedateoneyearprior tothelastdateoftheperiod specified under theprovision of
thesaidparagraph, asmaybeprescribed inCabinet Order, submit totheGovernment sufficient evidence
withregard tothethreat thattheimportation ofthespecified dumped product andthefactofthematerial
injury, etc.tothedomestic industry caused bysuchimportation would belikely tocontinue orrecurG/SG/N/1/JPN/2
Page67
aftertheexpiry oftheperiod specified under theprovisions ofthesaidparagraph, andrequest the
Government toextend suchspecified period.
27. TheGovernment shall, uponarequest made under theprovisions ofthepreceding paragraph
orwhen thereissufficient evidence withregard tothethreat thattheimportation ofthespecified dumped
product andthefactofthematerial injury, etc.tothedomestic industry caused bysuchimportation
would belikely tocontinue orrecur aftertheexpiry oftheperiod specified under theprovisions of
paragraph 1,initiate, ifitisfound tobenecessary, aninvestigation astowhether thethreat exists.
28. Theprovisions ofparagraphs 7,8and23shallapply mutatis mutandis tothecases where the
investigation under thepreceding paragraph isinitiated.
29. Thespecified product shall, imported during theperiod from thedateoftheinitiation tothe
dateoftheconclusion oftheinvestigation under paragraph 27,beconsidered asaproduct imported
during theperiod specified under theprovision ofparagraph 1andtheprovisions ofparagraph 1shall
apply tosuchspecified product.
30. When theperiod specified under theprovisions ofparagraph 1isextended inaccordance with
theprovisions ofparagraphs 20or25,suchextension oftheperiod shallbelimited tofiveyears from
thedateasenumerated ineachofthefollowing subparagraphs inaccordance withtheclassification
ofthecases. Thisshallalsoapply tothecasewhere suchextended period isextended:
(1) Where theGovernment extends theperiod inaccordance withtheprovisions of
paragraph 20;thedateofthecompletion oftheinvestigation under paragraph 22;
(2) where theGovernment extends theperiod inaccordance with theprovisions of
paragraph 25;thedateofthecompletion oftheinvestigation under paragraph 27.
31. Theprovisions ofparagraphs 20to24andthepreceding paragraph (excluding subparagraph (2))
shallapplymutatismutandistothecaseswheretheundertakingacceptedinaccordancewiththeprovision
ofparagraph 8ismodified (including themodification ofthevalid period).
32. When there isafactthattheamount oftheanti-dumping dutypaidbytheimporter ofthe
specified product exceeds theamount oftheactual dumping margin ofthespecified product, theimporter
may, asmaybeprescribed byaCabinet Order, submit totheGovernment sufficient evidence with
regard tosuchfact,andrequest theGovernment toreimburse theanti-dumping dutyequivalent tosuch
anexcess amount (hereinafter referred toas"reimbursable amount").
33. TheGovernmentshall,uponrequestundertheprovisionsoftheprecedingparagraph,investigate
astowhether thereimbursable amount exists andother necessary matters, andonthebasis ofthe
investigation, without delay, reimburse theanti-dumping dutywithin thelimitoftheamount requested,
ornotify theperson whorequested thatthere isnoground fortherequest.
34. Theinvestigation under thepreceding paragraph shallbeconcluded within oneyearfromthe
dateoftherequest under theparagraph 32.However, theperiod maybeextended atmostsixmonths
ifdeemed necessary forspecial reasons.
35. Theprovisions ofparagraphs 2to7ofArticle 13oftheCustoms Law(reimbursement and
appropriation) shallapply mutatis mutandis tothecases where theGovernment reimburses theanti-
dumping dutyinaccordance withtheprovisions ofparagraphs 32tothepreceding paragraph. Inthese
cases, theperiod under theprovisions ofparagraph 2ofArticle 13oftheCustoms Lawthatprovides
forthebasisforthecalculation ofadditional refund money under theprovisions ofthesaidparagraphG/SG/N/1/JPN/2
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shallbecalculated from thefollowing dateoftherequest forreimbursement under theprovision of
paragraph 32.
36. When adomestic saleoftheproduct imported byanimporter associated withanexporter is
made atapricelessthantheselling priceforexport oftheproduct anditsnormal price, suchadomestic
saleshallberegarded astheimportation ofadumped product andtheprovisions ofeachpreceding
paragraph shallapply thereto.
37. Inaddition tothematters asprovided forineachpreceding paragraph, anynecessary matters
ontheapplication ofanti-dumping dutyshallbeprescribed byaCabinet Order.
95.5.2
(Emergency duties)
Article 9.Inthecasewhere, asaresult ofadecline intheprice inaforeign country orof
unforeseen developments ofcircumstances, there isthefactthatanyproduct ofaparticular kindis
being imported insuchincreased quantities, absolute orrelative todomestic production (hereinafter
inthisArticle referred toas"thefactofimport increase ofparticular product") andthatimport of
suchaproduct causes orthreatens tocause serious injury tothedomestic industry which produces
thelikeordirectly competitive products (hereinafter inthisArticle referred toas"thefactofserious
injury, etc.toadomestic industry"), anyofthefollowing measures maybetaken, asmaybeprescribed
byaCabinet Order, specifying product andaperiod oftimewhich shallnotexceed fouryears including
theperiod specified under theprovisions ofparagraph 8,ifitisdeemed urgently necessary totake
suchmeasures intheinterest ofthenational economy. However, inthecasewhere theproduct to
bespecified includes theproduct originating inadeveloping country Member oftheWorld Trade
Organization,suchproductofdevelopingcountryMembershallnobespecifiedaslongasthatdeveloping
country Member hasasmall share ofimport, byquantity, ofproduct concerned inJapan (hereinafter
inthisparagraph andparagraph 8referred toas"product ofdeveloping country withsmall share"):
(1) Toimpose uponallofthespecified product tobeimported during thespecified period
orsuchaproduct tobeimported exceeding acertain level ofquantity orvalue, in
addition tocustoms dutychargeable atanapplicable rateshown intheAnnexed Tariff,
adutyinanamount equal toorlessthantheamount corresponding tothedifference
between thecustoms value ofthesaidproduct andthewholesale priceinJapan oflike
orsimilar product, which isdeemed tobeappropriate (inthecaseofsimilar product,
wholesale price inJapan towhich adjustment deemed reasonably necessary hasbeen
made, taking intoaccount anyprice difference caused bythedifference inthenature
andmode oftrade between similar product andthesaidproduct), minus theamount
ofcustoms dutychargeable atanapplicable rateintheAnnexed Tariff;
(2) towithdraw theconcession ortomodify theconcession, inthecases where Japan has
granted atariff concession onthespecified product under theMarrakesh Protocol to
theGeneral Agreement onTariffs andTrade 1994 inAnnex 1AtotheAgreement
Establishing theWorld Trade Organization (hereinafter inthisArticle referred toas
the"Marrakesh Protocol") andunder anyothertreaties concluded within theframework
oftheGeneral Agreement onTariffs andTrade 1994 inAnnex 1AtotheMarrakesh
Agreement Establishing theWorld Trade Organization (hereinafter inthisArticle
referred toasthe"General Agreement"), within thelimitoftherateofdutyinthe
Annexed Tariff (inthecasewhere themeasure asprovided forinthepreceding
subparagraph hasbeentaken, within thelimitoftherateofdutyincluding thecustoms
dutychargeable inaccordance withthesaidsubparagraph. Thisshallapply totherest
ofthissubparagraph.) Inaccordance withtheprovisions ofparagraph 1ofArticle XIXG/SG/N/1/JPN/2
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(emergency action onimports ofparticular products) oftheGeneral Agreement and
theAgreement onSafeguards inAnnex 1AtotheMarrakesh Agreement Establishing
theWorld Trade Organization (hereinafter inthisArticle referred toasthe"Agreement
onSafeguards"), andtoimpose uponsuchimported product customs dutychargeable
atanapplicable rateintheAnnexed Tariff orcustoms dutychargeable atthemodified
rate.
2. Inthecasewhere themeasure under theprovisions ofpreceding paragraph istobetaken and
theexpected period specified under thesaidprovisions isoveroneyear, suchmeasure shall be
progressively liberalized atregular intervals during theperiod ofapplication.
3. Inthecasewhere themeasure under theprovisions ofsubparagraph (2)ofparagraph 1orother
measures under theprovisions ofparagraph 1ofArticle XIXoftheGeneral Agreement ortheAgreement
onSafeguards istaken ortobetaken onanyproduct, through theconsultations based ontheprovisions
ofparagraph 2ofArticle XIXoftheGeneral Agreement (theprocedures ofemergency measure) or
theAgreement onSafeguards, asmaybeprescribed byaCabinet Order, tariff concession maybe
modified onother products thetariff rateofwhich hasbeenbound ormaybebound onother products
thetariff rateofwhich isnotbound andsuchmodified orbound tariff ratesmaybeapplied.
4. Inthecases where anyforeign country haswithdrawn ormodified tariff concession ortaken
anyothermeasure onparticular product inaccordance withtheprovisions ofparagraph 1ofArticle XIX
oftheGeneral Agreement andtheAgreement onSafeguards (hereinafter inthisparagraph andfollowing
paragraph referred toas"Emergency measures byforeign country"), ifitisfound thatthereexistthose
circumstances which areprovided forinsubparagraph (a)(measures against emergency action) of
paragraph 3ofArticle XIX oftheGeneral Agreement andtheAgreement onSafeguards or
subparagraph (b)(measures against emergency action inurgent situations) ofparagraph 3ofArticle XIX
oftheGeneral Agreement, anyofthefollowing measures maybetaken withrespect totheimported
products, asmaybeprescribed byaCabinet Order, specifying theproduct (inthecasewhere ameasure
asprovided forinsubparagraph (a)ofparagraph 3ofArticle XIXoftheGeneral Agreement andthe
Agreement onSafeguards istaken, thecountry andtheproduct). However, thisshallnotbeapplied
tothemeasures taken under theprovisions ofsubparagraph (a)ofparagraph 3ofArticle XIXofthe
GeneralAgreementandtheAgreementonSafeguards,ifsuch"Emergencymeasuresbyforeigncountry"
hasbeentaken under theprovisions oftheAgreement ofSafeguards, asaresult ofanabsolute increase
inimports ofsuchspecified product insuchforeign country andmore thanthreeyears havenotelapsed
since suchmeasure wastaken:
(1) Toimpose uponthesaidproduct, inaddition tocustoms dutychargeable atanapplicable
rateintheAnnexed Tariff, adutyinanamount equal toorlessthanthecustoms value
ofthesaidimported product;
(2) tosuspend application ofthetariff concession inthecases where Japan hasgranted
atariff concession onthesaidproducts under theMarrakesh Protocol orunder any
other treaties concluded within theframework oftheGeneral Agreement, andtoimpose
acustoms dutyatarateofdutywithin thelimitoftherateintheAnnexed Tariff (in
thecases where ameasure asprovided forinthepreceding subparagraph hasbeen
taken, within thelimitoftherateofdutyincluding thecustoms dutychargeable in
accordance withthesaidsubparagraph).
5. Themeasures under theprovisions ofparagraph 3orthepreceding paragraph shallbetaken,
withdueregard paidtotheconsiderations thattheyshould notexceed, intheireffect, thelimitnecessary
toserve asacompensation forthemeasure under theprovisions ofsubparagraph (2)ofparagraph 1
orother measures under theprovisions ofparagraph 1ofArticle XIXoftheGeneral Agreement andG/SG/N/1/JPN/2
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theAgreement onSafeguards orasacounter-measure against themeasures byforeign country and
thattheirimpact upon thenational economy should bekepttotheminimum.
6. TheGovernment shall, when thereissufficient evidence concerning thefactofimport increase
ofparticular product andthefactofserious injury, etc.toadomestic industry caused bysuch
importation, initiate, ifitisfound tobenecessary, aninvestigation astowhether these factsexist.
7. Theinvestigation asprovided forinthepreceding paragraph shallbecompleted within one
yearafterthedatewhen theinvestigation wasinitiated. However, theperiod maybeextended tosuch
anextent asdeemed necessary forspecial reasons.
8. Inthecasewhere aninvestigation referred toinparagraph 6hasbeeninitiated, theGovernment
may, ifthefactofimport increase ofparticular product andthefactofserious injury, et.toadomestic
industrycausedbysuchimportationarepresumedbasedonsufficientevidencesanditisdeemedurgently
necessary intheinterest ofthenational economy, takeanyofthefollowing measures evenprior to
completion oftheinvestigation, asmaybeprescribed byaCabinet Order, specifying product andperiod
oftimewhich shallnotexceed 200days. However, inthecasewhere product tobespecified includes
theproduct ofdeveloping country withsmall share, suchproduct ofdeveloping country withsmall
share shallnotbespecified:
(1) Toimpose uponallofthespecified product tobeimported during thespecified period
orsuchproduct tobeimported exceeding acertain levelofquantity orvalue, inaddition
tocustoms dutychargeable atanapplicable rateintheAnnexed Tariff, adutyinan
amount equal toorlessthantheamount corresponding tothedifference between the
customs value ofthesaidproduct andthewholesale price inJapan oflikeorsimilar
product, which ispresumed tobeappropriate (inthecaseofsimilar product, wholesale
priceinJapan towhich adjustment deemed reasonably necessary hasbeenmade, taking
intoaccount anyprice difference caused bythedifference inthenature andmode of
tradebetween similar product andthesaidproduct), minus theamount ofcustoms duty
chargeable atanapplicable rateintheAnnexed Tariff;
(2) towithdraw theconcession ortomodify theconcession inthecasewhere Japan has
granted atariffconcession onthespecified product under theMarrakesh Protocol and
under anyother treaties concluded within theframework oftheGeneral Agreement,
within thelimitoftherateofdutyintheAnnexed Tariff (incasewhere themeasure
asprovided forinthepreceding subparagraph hasbeentaken, within thelimitofthe
rateofduty including thecustoms duty chargeable inaccordance with thesaid
subparagraph. Thisshallapply totherestofthissubparagraph.) inaccordance with
theprovisions ofparagraph 1ofArticle XIXoftheGeneral Agreement andthe
Agreement onSafeguards andtoimpose upon suchimported product custom duty
chargeable atanapplicable rateintheAnnexed Tariff orcustoms dutychargeable at
themodified rate.
9. When theinvestigation referred toinparagraph 6hasbeencompleted, theGovernment shall,
exceptthecasewherethemeasureundertheprovisionsofparagraph1shallbetaken,promptlyreimburse
customs dutypaidunder theprovisions ofthepreceding paragraph. When theamount ofdutywhich
wasimposed inaccordance withtheprovisions ofthepreceding paragraph exceeds theamount ofduty
which would havebeenimposed inaccordance withtheprovisions ofparagraph 1uponproduct specified
under theprovisions ofpreceding paragraph andimported during theperiod when themeasure under
theprovisions ofpreceding paragraph wastaken, shalllikewise bereimbursed.G/SG/N/1/JPN/2
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10. When themeasure under theprovisions ofparagraph 1istaken, ifitisdeemed thatthefact
ofserious injury, etc.toadomestic industry caused byincreased imports ofproduct specified under
theprovisions ofsaidparagraph continues toexistafterexpiration oftheperiod specified under the
provisions ofsaidparagraph andthedomestic industry specified under theprovisions ofsaidparagraph
isadjusting, theperiod specified under theprovisions ofsaidparagraph maybeextended, asmaybe
prescribed byaCabinet Order, provided thatthetotalperiod specified including theperiod specified
under theprovisions ofparagraph 8shallnotexceed eightyears. Inthiscase,themeasure taken under
theprovisions ofparagraph 1during theextended period shallnotbemore restrictive against import
thanthemeasure taken under theprovisions ofthesaidparagraph intheperiod before theextension.
11. Theprovisions ofparagraphs 6and7shallapply mutatis mutandis tothecasewhere thespecified
period under theprovisions ofparagraph 1istobeextended inaccordance withtheprovisions ofthe
preceding paragraph.
12. Iftheperiod specified under theprovisions ofparagraph 1exceeds threeyears, theGovernment
shallreview thesituation notlaterthanthemid-term ofsuchperiod towithdraw themeasure under
theprovisions ofsaidparagraph ortoincrease thepaceofliberalization.
13. Nomeasure under theprovisions ofparagraphs 1or8shallbeapplied again totheimport
ofaproduct which hasbeensubject toameasure under theprovisions ofsubparagraph (1)or(2)of
paragraph 1orother measures under theprovisions ofparagraph 1ofArticle XIXoftheGeneral
Agreement andtheAgreement onSafeguards (hereinafter inthisparagraph referred toas"theemergency
measure"), untilthetimewhen aperiod oftimeequal totheduration forwhich suchameasure has
beenpreviously applied ortwoyears, whichever islonger, haselapsed sincethedateofthetermination
ofthemeasure. However, thisshall notapply toameasure withaduration of180daysorless
(hereinafter inthisparagraph referred toas"short-term measure"), iftheconditions asprovided for
inthefollowing subparagraphs aremet:
(1) Such short-term measure isapplied afteratleastoneyearhaselapsed since thedate
ofintroduction oftheprevious emergency measure ontheproduct subject tosucha
short-time measure;
(2) emergency measures havenotbeenapplied ontheproduct subject tosuchshort-time
measures more thantwice forthepreceding fiveyears.
14. Inthecasewhere themeasures asprovided forinparagraphs 1,3or4havebeentaken, the
Cabinet shall, without delay, report totheDietonthematter.
15. Inaddition tothematters asprovided forinthepreceding paragraphs, anynecessary matters
relating totheapplication ofthose provisions shallbeprescribed byaCabinet Order.
(Tariff quota system)
Article 9-2.With regard toanygoods, asmaybeprescribed byaCabinet Order, forwhich
arateofdutyisfixed intheAnnexed Tariff foraspecified quantity, therateofdutyshallbeapplied
tosuchgoods which areimported, within thelimitofthatquantity, byaperson whohasbeengiven
aquota allocation bytheGovernment, onthebasisofthequantities ofthesaidgoods which haveactually
been, andareestimated tobeused, andtaking intoaccount thenecessity forthenational economy.
2. Themethod oftheallocation andtheprocedure forreceiving theallocation referred tointhe
preceding paragraph andother matters necessary forapplication oftheprovisions ofthesaidparagraph
shallbeprescribed byaCabinet Order.G/SG/N/1/JPN/2
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(Reduction orrefund ofcustoms dutyfordeterioration anddamage, etc.)
Article 10.Inthecases where anyimported goods havedeteriorated orhavebeendamaged
priortotheirimportpermitpriortotheapproval,withregardtothosereceivedgoodswhichareapproved
inaccordance withtheprovisions ofparagraph 1ofArticle 73(receipt ofgoods priortoimport permit
oftheCustoms Law), thecustoms dutychargeable upon thesaidgoods maybereduced, asmaybe
prescribed byaCabinet Order, according totherateofdepreciation caused bythedeterioration or
damage ofthesaidgoods, ormaybereduced, asmaybeprescribed byaCabinet Order, byanamount
equal toorlessthanthedifference between theamount ofdutychargeable, ifthegoods havenot
deteriorated orhavenotbeendamaged, ontheonehand, andtheamount ofdutytobedetermined,
taking intoaccount thenature andquantities ofthegoods sodeteriorated ordamaged, ontheother.
However, thereduction ofcustoms dutybased ontherateofdepreciation (excluding thereduction
ofcustoms dutychargeable onthebasisofquantity) shallnotapply tothecasewhere imported goods
havedeteriorated orwere damaged bythetimeofimport declaration, etc.
2. Inthecases, where thegoods withanimport permit aredestroyed, deteriorated ordamaged
owing toadisaster oranyother unavoidable reason, while theywereplaced, aftertheimport permit
wasgiven, inaHozei areaorinanyother areadesignated bytheDirector-General ofCustoms in
accordancewiththeprovisionsofsubparagraph(2)ofArticle30(Foreigngoodsstored,withpermission,
inareas other thanHozei area)oftheCustoms Law, thecustoms dutypaidforthegoods maywholly
orpartially berefunded, asmaybeprescribed byaCabinet Order.1
(Reduction ofcustoms dutyongoods exported forprocessing orrepair)
Article 11.With regard toanygoods exported from Japan forprocessing (which isdeemed
difficult tobeundertaken inJapan), orrepair abroad andsubsequently imported intoJapan within one
yearfromthedateoftheirexport permit (orwithin alonger period, exceeding oneyear, asdesignated
bytheDirector-GeneralofCustoms,whenthereisareasontobelievethatsuchalongerperiodexceeding
oneyearisinevitably necessary andifanapproval isgiven bytheDirector-General ofCustoms under
theprovisions oftheCabinet Order) thecustoms dutymaybereduced, asmaybeprescribed byaCabinet
Order, within thelimitoftheamount ofcustoms dutychargeable onthesaidgoods, iftheywould
havebeenimported inthesame nature andform astheexport permit wasgiven.
[This Article hasbeenamended andthetranslation oftheamended Article isyettobedone.]
(Reduction oforexemption from customs dutyondaily living necessities)
Article 12.Incases where imported rice,hulled orunhulled, barley orwheat fallsunder any
ofthefollowing subparagraphs, thecustoms dutychargeable upon thesaidgoods maybereduced or
exempted, asmaybeprescribed byaCabinet Order, specifying thegoods andtheperiod:
(1) When theaggregate ofthecustoms value, asprovided forinArticles 4to4-8,ofthe
importedgoods,aswellasthecustomsdutyandordinaryexpensesincidentaltodelivery
ofthesaidgoods from theportofimportation tothedomestic wholesale market is,
generally, higher thanthewholesale price inJapan ofdomestically-produced goods
ofasimilar kind;
1"Hozei" means thesituation where thecustoms dutyandtaxarenotlevied ongoods temporarily (i.e., the
situation where goods aretreated asforeign goods which have notpassed thecustoms border). Areas where
goods canbetreated inthissituation, "Hozei", arecalled "Hozei" areas. Imported goods areunder theCustoms
control iftheyareplaced inthe"Hozei" areaandanimporter doesnothavetosubmit anybond tothecustoms.
Hereinafter inthelaw,referred toasthesame. SeeChapter 4(Hozei Area) ofthelaw.G/SG/N/1/JPN/2
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(2) when abadcrop, anatural disaster oranyother emergency circumstances warrant
suchreduction orexemption.
2. Theprovisions ofthepreceding paragraph shallapply mutatis mutandis toimported pork.
Forthispurpose, thefollowing provisions shallbeadded tothose provided forinsubparagraph (1)
ofthepreceding paragraph: "andwhen itisfound thatthedomestic wholesale price ofpork," the
standard ofwhich isprescribed byaCabinet Order, exceeds orthreatens toexceed theupper limit
ofthestabilization price range forthesaidpork, asprescribed insubparagraph (3)ofparagraph 1of
Article 3oftheLawRelating tothePrice Stabilization, etc.ofLivestock Products (Law No.183of
1961).
3. When theaverage import price ofrawsugar which isprovided forinparagraph 1(Average
import price) ofArticle 7oftheLawRelating tothePrice Stabilization, etc.ofSugar (Law No.109
of1965) exceeds theupper limit ofthestabilization price range ofrawsugar asprovided forin
paragraph 1(Upper andlower limits ofstabilization prices, etc.)ofArticle 3ofthesaidLawandwhen
itisdeemed difficult tostabilize thepriceofsugar bymeans ofpriceadjustment measures forimported
sugar which areprovided forinArticle 6to10(Price adjustment measures) ofthesaidLaw, thecustoms
dutychargeable ontheimported sugar maybereduced orexempted, asmaybeprescribed byaCabinet
Order, specifying thekinds ofsugar andtheperiod, totheextent bywhich theaverage import price,
asdefined by"A"ofsubparagraph (1)ofparagraph 1ofArticle 10ofthesaidLaw, exceeds theupper
limitofthestabilization price range, asdefined bysubparagraph (2)ofthesaidparagraph.
4. Withrespect tofoodstuffs, apparels andanyother goods which areclosely related tothedaily
living ofthepeople (excluding those goods asprovided forinthepreceding three paragraphs) and
areimported from abroad, incasetheirimport prices riseorthreaten torisesharply anditisfound
urgently necessary todosoforthestabilization ofdailyliving ofthepeople, andwhen itisfound that
theirimport would notthreaten tocause aconsiderable injury toadomestic industry inJapan which
isproducing identical goods ordirectly competing goods interms oftheiruses, thecustoms duty
chargeable onthose imported goods maybereduced orexempted, asmaybeprescribed byaCabinet
Order, specifying thegoods andthetimeperiod.
(Reduction oforexemption from customs dutyonrawmaterials formanufacture)
Article 13.With regard toimported rawmaterials asprovided forinanyofthefollowing
subparagraphs, thecustoms dutychargeable upon suchrawmaterials shallbereduced orexempted,
asmaybeprescribed byaCabinet Order, ifthemanufacture asprovided forinanyofthesaid
subparagraphs iscompleted within oneyearfromthedateofimport permit atthemanufacturing factory
approved bytheDirector-General ofCustoms:
(1) Kaoliang andother grain sorghum, Indian corn, soybean, soybean cakeandanyother
rawmaterials asmaybeprescribed byaCabinet Order, which aretobeusedforthe
manufacture ofmixed feeds asmaybeprescribed byaCabinet Order;
(2) fruitofdatepalm (dried only) foruseinmanufacturing datesyrup;
(3) peanuts foruseinmanufacturing peanut oil.
2. TheDirector-General ofCustoms shall, when hedeems thatnodifficulty willarisetoensure
implementation ofthisLawandtheCustoms Law, giveanapproval asprovided forinthepreceding
paragraph.G/SG/N/1/JPN/2
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3. When customs dutyistobereduced orexempted inaccordance withparagraph 1ofthisArticle,
theDirector-General ofCustoms mayrequire asecurity tobedeposited, which isequivalent tothe
amount ofdutysoreduced orexempted.
4. When themanufacture asprovided forinanyofthesubparagraphs ofparagraph 1istobe
carried outunless theDirector-General ofCustoms approves thatnodifficulty willarisetoconfirm
themanufacture bymeans oftherawmaterials forwhich customs dutyhasbeenreduced orexempted,
inaccordance withparagraph 1(hereinafter inthisArticle referred toas"rawmaterial formanufacture"),
norawmaterials formanufacture shallbeusedinmixture withanyother rawmaterials ofasimilar
kind.
5. When themanufacture ofrawmaterials formanufacture hasbeencompleted, themanufacturer
concerned shall, asmaybeprescribed byaCabinet Order, report tothecustomhouse thequantities
oftherawmaterials formanufacture usedandthegoods manufactured therefrom, andshallhavethe
goodsexaminedbythecustomhousewheneverareportissomadeorwheneverthecircumstanceswarrant
suchexamination.
6. Therawmaterials formanufacture asspecified inanyofthesubparagraphs ofparagraph 1
shallnot,within oneyearfrom thedateoftheirimport permit, beoffered foruseother thanthose
asspecified inanyofthesaidsubparagraphs, orbetransferred sothattheymaybeoffered foruse
other thanthose specified inanyofthesaidsubparagraphs. However, theforegoing provision shall
notapply tothecasewhere, foranunavoidable reason, anapproval isgiven bytheDirector-General
ofCustoms asmaybeprescribed byaCabinet Order.
7. Thecustoms dutyreduced orexempted inaccordance withtheprovisions ofparagraph 1shall
forthwith becollected, inthecases asspecified inanyofthefollowing subparagraphs, fromanyperson
found tocome under anyofthesaidsubparagraphs. However, incases where therawmaterials for
manufactureorthegoodsmanufacturedtherefromwerelost,owingtoadisasteroranyotherunavoidable
reason orweredestroyed withtheapproval oftheDirector-General ofCustoms, thecustoms dutyshall
notbecollected. Incases where therawmaterials formanufacture, towhich theapproval referred
tointheproviso tothepreceding paragraph wasgiven, havedepreciated owing todeterioration, damage
oranyotherunavoidable reason, thecustoms dutychargeable thereon maybereduced mutatis mutandis
inaccordance withtheprovisions ofparagraph 1ofArticle 10:
(1) When anapproval isgiven totherawmaterials formanufacture asspecified inany
ofthesubparagraphs ofparagraph 1inaccordance withtheproviso ofthepreceding
paragraph, orwhen therawmaterials formanufacture areoffered foruseother than
those asspecified inanyofthesaidsubparagraphs oraretransferred sothattheymay
beoffered foruseotherthanthose asspecified inanyofthesaidsubparagraphs, without
suchapproval, orwhen, within oneyearfromthedateoftheirimport permit, areport
isnotmade inaccordance withtheprovisions ofparagraph 5orthemanufacture thereof
isnotcompleted;
(2) when therawmaterials formanufacture areoffered formanufacture atanyplace other
thanthemanufacturing factory approved bytheDirector-General ofCustoms under
paragraph 1orwhen theyareusedincontravention oftheprovisions ofparagraph 4.
8. Anyperson whohasobtained theapproval ofthemanufacturing factory inaccordance with
theprovisions ofparagraph 1shallpaytothecustomhouse concerned, asmaybeprescribed byaCabinet
Order, afeetheamount ofwhich shallbefixed byaCabinet Order onthebasisofthetotalfloorspace
ofthesaidmanufacturing factory, thevalidity period oftheapproval andthetypeofcustoms service
extended tosuchafactory.G/SG/N/1/JPN/2
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[This Article hasbeenamended andthetranslation oftheamended Article isyettobedone.]
(Unconditional exemption from customs duty)
Article 14.Withregard toimported goods asenumerated below, thecustoms dutychargeable
upon suchgoods shallbeexempted asmaybeprescribed byaCabinet Order.
(1) Articles foruseoftheEmperor andtheImperial household.
(2) Articles belonging totheheadofanyforeign country ormembers ofhisfamily (i.e.
spouse, lineal ascendant, lineal descendant andsuchrelatives asmaybedeemed to
beofasimilar standing; hereinafter referred toasthesame.) ortheirsuites, visiting
Japan.
(3) Decorations, medals, prize-cups andanyother similar awards andbadges, presented
toanyresident inJapan byanyforeign country, anylocal public entity which is
responsibleforanyadministrativedistrictofsuchcountry,anyinternationalorganization,
orsuchorganizations, funds orothers ofsimilar standing asmaybedesignated by
theMinister ofFinance.
(3-2) Articles foreducational orpublicity purposes which arepresented bytheUnited Nations
orspecialized agencies thereof, andeducational, scientific orcultural films, slides,
sound records andother similar articles which areproduced bythesaidorganizations.
(3-3) Official catalogues, pamphlets, posters andother similar articles foranexposition,
fairoranyother similar exhibition (hereinafter referred toas"exposition, etc."inthis
subparagraph andinsubparagraph (5-2) ofparagraph 1ofArticle 15)asmaybe
prescribed byaCabinet Order, which arepublished byanycountry participating in
suchexpositions, etc.(including localpublic entity ofsuchcountry andinternational
organizations participating inexposition, etc.).
(4) Records andother documents.
(5) Articles under theStatemonopoly which areimported bytheGovernment oranyperson
entrusted bytheGovernment.
(5-2) Currencies imported forthepurpose offoreign exchange business byauthorized foreign
exchange banks which areprovided forinArticle 11(Business arrangement) ofthe
Foreign Exchange andForeign Trade Control Law(Law No.228of1949).
(6) Samples forreceiving orders. However theyshallberecognized asbeing suitable only
forsamples orbespecified byaCabinet Order asthose ofextremely small value.
(6-2) Labels which aretobeattached togoods exported from Japan bythemanufacturer
thereof inorder toindicate thatthequality ofsuchgoods conforms totheconditions
setoutbyanycompetent organization inthecountry ofdestination ofthesaidgoods;
however, suchlabels areprescribed byaCabinet Order asthosenecessary forexporting
thesaidgoods.
(7) Articles brought intoJapan byanyperson withhim,orimported separately byhim,
asmaybeprescribed byaCabinet Order, asunaccompanied goods, whoenters into
JapanforapurposeotherthanremovalorhisresidencetoJapan(excludingautomobiles,G/SG/N/1/JPN/2
Page76
vessels, aircrafts, andanyotherarticles asmaybedesignated byCabinet Order), which
areintended forhispersonal useorarenecessary forhisprofessional use.However,
theyshallbedeemed bythecustomhouse tobeappropriate, taking intoaccount the
purpose ofhisentry, theperiod ofhisstay,hisprofession andanyother circumstances.
(8) Articles brought intoJapan byanyperson withhim,orimported separately byhim,
asmaybeprescribed byaCabinet Order, asunaccompanied goods, whoenters into
JapanforapurposeofremovalofhisresidencetoJapan(excludingautomobiles,vessels,
aircrafts andanyother articles asmaybedesignated byaCabinet Order), which are
intended forpersonal andprofessional useofhisownormembers ofhisfamily.
However, thesearticles shallbelimited tothose which havealready beenusedbythem
andmaybedeemed tobenormal andreasonable, taking intoaccount thereason for
theremoval oftheirresidence, theperiod oftheirstayinanyforeign country andin
Japan, their profession, thenumber ofmembers ofhisfamily andanyother
circumstances.
(9) Articles fortheofficial usewhich arereturned toJapan fromtheJapanese diplomatic
establishments abroad.
(10) Goods exported fromandthenimported intoJapan without anychange inthenature
andform atthetimeoftheir exportation from Japan. However, dutyexemption
envisaged inthissubparagraph shallnotbeapplied togoods forwhich dutyexemption
orreduction wasgranted inaccordance withtheprovisions ofparagraph 1ofArticle 17
orparagraph 1ofArticle 18,goods manufactured fromgoods forwhich dutyreduction,
exemption orrefund wasgranted inaccordance withtheprovisions ofparagraph 1
ofArticle 19,goods shipped toanyforeign country, asenvisaged inparagraph 1of
Article 19-2 incases where dutyexemption wasgranted inaccordance withthe
provisions ofthesaidparagraph, andgoods forwhich customs dutywasrefunded in
accordance withtheprovisions ofparagraph 2ofArticle 19-2, ofArticle 19-3orof
Article 20.
(11) Containers (including those ofsimilar kind. Hereinafter insubparagraph (2)and(3)
ofparagraph 1ofArticle 17referred toasthesame) foranygoods exported fromJapan,
asmaybeprescribed byaCabinet Order andwereusedatthetimeoftheexportation
ofthesaidgoods orarebeing usedatthetimeofimportation ofanygoods. Inthis
case,theprovisionsoftheprovisototheprecedingsubparagraphshallbeappliedmutatis
mutandis .
(12) Deleted.
(13) Scraps andequipment ofanywrecked Japanese vessel oraircraft.
(14) Goods exported onboard anyvessel oraircraft which setoutfromJapan andreshipped
toJapan owing toanaccident which hasinvolved suchvessel oraircraft. Inthiscase,
theprovisions oftheproviso tosubparagraph (10)shallbeapplied mutatis mutandis .
(15) Deleted.
(16) Appliances manufactured forexclusive usebyphysically handicapped persons andany
other similar articles, which areprescribed byaCabinet Order.G/SG/N/1/JPN/2
Page77
(17) Filmfornewsreels(exposedonly)andtapefornews(useforrecordingonly).However,
inthecasewhere there areplural copies ofthesame contents, dutyexemption shall
begranted toonlytwoorlessofsuchcopies.
(18) Articles whose totalvalues forcustoms dutyareequal toorlessthan10,000 yen.
(Excluding articles designated byaCabinet Order, which arenotappropriate tobe
exempted fromcustoms dutyconsidering influence onJapanese industry oranyother
circumstances.)
(Reduction ofcustoms dutyforreimportation)
Article 14-2. Inthecasewhere theamount ofcustoms dutychargeable upon anyimported
goods asprovided forinanyofthefollowing subparagraphs exceeds theamount ofcustoms dutyas
specified inanyofthesaidsubparagraphs, thecustoms dutyshallbereduced, asmaybeprescribed
byaCabinet Order, byanamount ofthedifference between theformer andthelatter:
(1) Goods manufactured under hozei-work andsubsequently reshipped fromJapan, which
havemettheconditions assetforthinthetextofsubparagraph (10),inthefirstsentence
ofsubparagraph (11), orinthefirstsentence ofsubparagraph (14)ofthepreceding
Article; theamount ofcustoms dutychargeable uponforeign goods which wereused
asrawmaterials formanufacture ofthesaidgoods, which wasnotactually levied for
thereason thatthemanufacture wascarried outunder hozei-work;
(2) goods (including thegoods asspecified inthepreceding subparagraph), which fallunder
thefirstsentence ofsubparagraph (10),thefirstsentence ofsubparagraph (11)orthe
firstsentence ofsubparagraph (14)ofthepreceding Article, andthecustoms dutyon
which wasreduced, exempted orrefunded because oftheirexportation inaccordance
withtheprovisions ofsubparagraph (1)ofparagraph 1ofArticle 17,paragraph 1of
Article 19orparagraph 1or2ofArticle 19-2; theamount equivalent totheamount
ofcustoms dutyreduced, exempted orrefunded (inthecaseofthegoods asspecified
intheprecedingsubparagraph,thesaidamountshallbeaddedbyanamountasdescribed
inthesaidsubparagraph).
(Reduction oforexemption fromcustoms dutyonmarine products, etc.caught orgathered inforeign
country)
Article 14-3. Withregard totheimportation ofmarine products which werecaught orgathered
inanyforeign country byanyJapanese vessel which setoutforfishing from Japan andofproducts
which wereprocessed intothesaidmarine products, ormanufactured byusing, asrawmaterials, the
saidmarine products onboard anyJapanese vessel which setoutforfishing fromJapan thecustoms
dutyonsuchimported products shallbeexempted, asmaybeprescribed byaCabinet Order.
2. With regard totheimportation ofproducts, asmaybeprescribed byaCabinet Order, which
derived fromprocessing marine products caught orgathered byanyforeign vessel orweremanufactured
byusing suchmarine products, asrawmaterials, onboard anyJapanese vessel which setoutforfishing
from Japan, thecustoms dutyonsuchimported products maybereduced, asmaybeprescribed by
aCabinet Order, within thelimitofanamount corresponding tothedifference between theamount
ofcustoms dutychargeable uponthesaidimported products andtheamount ofcustoms dutychargeable
upon themarine products iftheywould havebeenimported inthesame nature andquantity asthose
ofthesaidmarine products before suchprocessing ormanufacture.G/SG/N/1/JPN/2
Page78
(Exemption from customs dutyforspecific use)
Article 15.Imported goods asspecified inanyofthefollowing subparagraphs shallbeexempted
from customs duty, asmaybeprescribed byaCabinet Order, iftheyarenotoffered foruseother
thanthose specified inanyofthesubparagraphs within twoyears from thedateofimport permit:
(1) Specimens orarticles forreference which areexhibited atanyschool, museum, show
place, research institute, laboratory, oranyother similar facilities, runbythe
Government, oralocal public entity, orthese facilities, which areprescribed bya
Cabinet Order, runbyanyperson other thantheGovernment oralocalpublic entity,
orarticles forscientific research, (which arenewly invented orconsidered difficult
tobeproduced inJapan) orfilms (exposed only), slides, records, tapes (used for
recording only) oranyother similar articles foreducational use,which areusedat
suchfacilities;
(2) articles donated toanyfacilities asspecified inthepreceding subparagraph forthe
purpose ofscientific research oreducation;
(3) supplies donated forcharity orrelief andarticles, except supplies, donated torelief
institutes, institutes forsenior citizens oranyother facilities forpublic welfare work,
which aredeemed tobeoffered fordirect useforpublic welfare atsuchfacilities;
(3-2) articles, other thanthose asspecified inanyofthepreceding three subparagraphs,
donated forpromoting international goodwill totheGovernment oranylocalpublic
entity foritsownuse;
(4) articles, asspecified byanOrdinance oftheMinistry ofFinance, donated toany
religious organization, which areoffered fordirect useforceremony orreligious
worship;
(5) instruments andappliances donated totheJapan RedCross Society bytheInternational
RedCross Institution ortheRedCross Society ofanyforeign country, which are
deemed tobeoffered fordirect useformedical purposes bytheJapan RedCross
Society;
(5-2) thefollowing articles which areimported byparticipants inanexposition, etc.foruse
atsuchexposition, etc.However, theyshallbelimited tothose which maybedeemed
appropriate inview oftheperiod oftimeandthescale ofthesaidexposition, etc.,
thekindandvalue ofthesaidarticles andanyother circumstances:
A. Catalogues, pamphlets, posters andanyother similar articles, other thanthose
asspecified insubparagraph (3-3) ofArticle 14,which aredistributed free
ofcharge byparticipants inanexposition, etc.tovisitors onthesiteofthe
saidexposition, etc.;
B. mementoes ofanexposition, etc.andsamples ofexhibits shown therein which
aredistributed freeofcharge byparticipants inthesaidexposition, etc.to
visitors onthesiteofthesaidinternational exposition, etc.;
C. goods, asmaybeprescribed byaCabinet Order, which aretobeconsumed
onthesiteofanexposition, etc.(asmaybeprescribed byaCabinet OrderG/SG/N/1/JPN/2
Page79
only)fortheconstruction,maintenance,removalormanagementofthefacilities
ofthesaidexposition, etc.
(6) deleted;
(7) deleted;
(8) instruments, appliances andparts thereof asmaybedesignated byaCabinet Order,
usedforsafelanding andtake-off orsafenavigation oranaircraft;
(9) automobiles, vessels, aircrafts oranyother articles, asdesignated byaCabinet Order,
which arebrought byanyperson withhim,orimported separately byhim,asmay
beprescribed byaCabinet Order, asunaccompanied goods, whoenters intoJapan
forthepurpose ofremoval ofhisresidence toJapan andwhich areintended forthe
personal useofhisownormembers ofhisfamily. However, theyshallbelimited
tothose which havebeenusedbythembefore theentry intoJapan (inthecaseofvessel
andaircraft, itisnecessary thattheyhavebeenusedbythem formore thanoneyear
before entry intoJapan);
(10) goods, asmaybeprescribed byaCabinet Order, thecustoms dutyonwhich istobe
exempted onthecondition thattheyshould beoffered forspecific use,aftertheir
importation, under theprovisions ofanyinternational treaty.
2. Inthecases where anygoods which were exempted from customs dutyinaccordance with
theprovisions ofanyofthesubparagraphs ofthepreceding paragraph are,within twoyears fromthe
dateoftheirimport permit, offered foruseother thanthose specified inanyofthesaidsubparagraphs
ortransferred sothattheymaybeoffered foruseother thanthose specified inanyofthesaid
subparagraphs, thecustoms dutysoexempted under thesaidparagraph shallforthwith becollected
from anyperson whooffered suchgoods foruseother thanthose specified orwhotransferred such
goods inthemanner mentioned above. However, incases where thesaidgoods areoffered foruse
other thanthose specified inanyofthesaidsubparagraphs owing tothedeterioration, damage orany
other unavoidable reason, thecustoms dutymaybereduced mutatis mutandis inaccordance withthe
provisions ofparagraph 1ofArticle 10.
(Exemption from customs dutyongoods fordiplomats, etc.)
Article 16. With regard toanyimported goods asspecified inanyofthefollowing
subparagraphs,thecustomsdutychargeablethereonshallbeexemptedasmaybeprescribedbyaCabinet
Order:
(1) Articles forofficial useofanyforeign embassy, legation orother establishment of
similar standing inJapan. However, incases where anyforeign country maintains
restrictions upondutyexemption against articles forofficial useofanysuchJapanese
establishment inthatcountry, thedutyexemption shallbemade onareciprocal basis;
(2) imported articles forpersonal useofanyforeign Ambassador, Minister oranyother
envoy ofsimilar standing accredited toJapan andmembers ofhisfamily. However,
incases where anyforeign country maintains restrictions upondutyexemption against
articles forpersonal useofanyJapanese Ambassador, Minister andanyother envoy
ofsimilar standing accredited tothatcountry andtheir family members, theduty
exemption shallbemade onareciprocal basis;G/SG/N/1/JPN/2
Page80
(3) articles which aretobeoffered onlyforofficial useofanyforeign consulates orany
otherestablishments ofsimilar standing inJapan. However, incaseswhere anyforeign
country maintains restrictions upondutyexemption against articles forofficial useof
anysuchJapanese establishment inthatcountry, thedutyexemption shallbemade
onareciprocal basis;
(4) articles forpersonal useofanymember, asdesignated byaCabinet Order, ofany
foreign embassy, legation, consulate oranyother establishment ofsimilar standing
inJapan (excluding anyhonorary consul-general andhonorary consul) andmembers
ofhisfamily (excluding anyperson having Japanese nationality), when imported by
suchmembers. However, incases where anyforeign country maintains restrictions
upon dutyexemption against articles forpersonal useofsuchJapanese members and
hisfamily, thedutyexemption shallbemade onareciprocal basis.
2. When thegoods, asdesignated byaCabinet Order, havebeenexempted from customs duty
under thepreceding paragraph andwereoffered within twoyears fromthedateoftheirimport permit,
foruseother thanthose specified inthesaidparagraph (except when thearticles wereoffered foruse
other thanthose specified inthesaidparagraph owing toanunavoidable reason asmaybeprescribed
byaCabinet Order), thecustoms dutyexempted under thesaidparagraph shallforthwith becollected
fromanyperson whooffered thesaidarticles forsuchother purposes. However, incases where the
articles havedepreciated owing totheabrasion resulted fromtheiruseortoanyotherreason, thecustoms
dutytobesocollectedmaybereducedmutatismutandisinaccordancewiththeprovisionsofparagraph1
ofArticle 10.
(Exemption from customs dutyforre-exportation)
Article 17. With regard toanyimported goods asspecified inanyofthefollowing
subparagraphs, thecustoms dutychargeable thereon shallbeexempted, asmaybeprescribed bya
Cabinet Order, iftheyareexported within oneyear(within aperiod which isprescribed byaCabinet
Order, inthecaseofgoods asspecified insubparagraph (11); or,within aperiod asdesignated by
theDirector-General ofCustoms which islonger thanthesaidperiod, inthecaseofgoods towhich
anapproval wasgiven bytheDirector-General ofCustoms, asmaybeprescribed byaCabinet Order,
forthereason thatthere isanunavoidable cause topostpone thesaidperiod) fromthedateofimport
permit thereof:
(1) Goods tobeprocessed oroffered asmaterials forprocessing, asmaybeprescribed
byaCabinet Order;
(2) containers forimported goods asmaybeprescribed byaCabinet Order;
(3) goods tobeusedascontainers forexport goods asmaybeprescribed byaCabinet
Order;
(4) goods toberepaired;
(5) articles forscientific research;
(6) articles fortesting;
(6-2) articles tobeusedbyanyperson exporting orimporting goods, fortesting thecapacity
orperformance of,orforexamining thequality of,thegoods soexported orimported;G/SG/N/1/JPN/2
Page81
(7) samples forreceiving orders orformanufacturing, orphotographs, films, models or
anyother similar articles onlyusedassubstitutes forthose samples;
(7-2) articles tobeusedatinternational athletic meets, international conferences orthelike;
(8) articles fortheperformance oftravelling showmen entering Japan andinstruments and
implements tobeusedfortaking filmbymotion picture producers entering Japan;
(9) articles forexhibiting atanexposition, exhibition competition, etc.;
(10) automobiles, vessels, aircrafts oranyother goods, asdesignated byaCabinet Order,
which arebrought intoJapan byanyperson withhim,orimported separately byhim,
asmaybeprescribed byaCabinet Order, asunaccompanied goods, which enter into
Japan forthepurpose other thanremoval ofhisresidence toJapan andwhich are
intended forhisownpersonal use;
(11) goods, asmaybeprescribed byaCabinet Order, which are,under theprovisions of
anytreaty concerned, exempt from customs dutyoncondition thattheyshould be
exported within aspecified period oftimeaftertheirimportation.
2. Theprovisions ofparagraph 3ofArticle 13shallapply mutatis mutandis tothecasewhere
customs dutyisexempt under thepreceding paragraph.
3. Anyperson whoenjoyed thebenefit ofdutyexemption under theprovisions ofparagraph 1
shall, when heexports thegoods, thecustoms dutyonwhich wassoexempted,within theperiod referred
tointhesaidparagraph, report tothecustomhouse tothateffect, asmaybeprescribed byaCabinet
Order.
4. Incases where thegoods customs dutyonwhich wasexempted under paragraph 1havenot
beenexported within theperiod oftimeasspecified inthesaidparagraph orwereoffered foruseother
thanthose specified inanyofthesubparagraphs ofthesaidparagraph, thecustoms dutyexempted
under thesaidparagraph shallforthwith becollected.
5. Theprovisions oftheproviso toparagraph 7ofArticle 13shallapply mutatis mutandis tothe
casewhere customs dutyiscollected under theprovisions ofthepreceding paragraph. Inthiscase,
theterms "therawmaterials formanufacture orthegoods manufactured therefrom" and"theraw
materials formanufacture, towhich theapproval referred tointheproviso tothepreceding paragraph
wasgiven" intheproviso toparagraph 7ofthesaidArticle shallread"thesaidgoods".
(Reduction ofcustoms dutyforre-exportation)
Article 18.Withregard tothose goods, asmaybeprescribed byaCabinet Order, which may
beusedforalongperiod oftimeandwhich areimported tobeusedtemporarily inJapan, normally
inaccordance withalease contract orinconnection withanimplementation ofacontract, andare
exported within twoyears (or,within suchaperiod asmaybeprescribed byaCabinet Order, not
exceeding fiveyears, forthose goods, asmaybeprescribed byaCabinet Order, which maybeused
foraparticularly longperiod oftime; hereinafter inparagraph 3referred toasthesame) from the
dateoftheirimport permit, thecustoms dutychargeable thereon maybereduced, asmaybeprescribed
byaCabinet Order.G/SG/N/1/JPN/2
Page82
2. When customs dutyistobereduced inaccordance withprovisions ofthepreceding paragraph,
theDirector-General ofCustoms mayrequire asecurity tobedeposited, which shallbeequivalent
totheamount ofcustoms dutysoreduced.
3. Inthecasewhere thegoods thecustoms dutyonwhich wasreduced under paragraph 1have
notbeenexported within twoyears fromthedateoftheirimport permit, thecustoms dutysoreduced
under thesaidparagraph shallforthwith becollected. Inthiscase, theprovisions ofparagraph 5of
thepreceding Article shallapply mutatis mutandis .
4. Theprovisions ofparagraph 3ofthepreceding Article shallapply mutatis mutandis toany
person forwhom customs dutywasreduced under theprovisions ofparagraph 1.
(Reduction ofexemption from orrefund ofcustoms dutyonrawmaterials formanufacturing export
goods)
Article 19.Withregard toanyimported rawmaterials which aretobeusedformanufacturing
export goods andareprescribed byaCabinet Order, thecustoms dutychargeable thereon shallbe
reduced, exempted orrefunded wholly orpartially, asmaybeprescribed byaCabinet Order, ifthe
saidmanufacturing iscarried outatthemanufacturing factory approved bytheDirector-General of
Customs andthegoods manufactured fromthesaidrawmaterials areexported. Inthiscase,reduction
orexemption fromcustoms dutyshallonlybemade when thesaidgoods areexported within twoyears
(or,withregard toproducts manufactured inaccordance withparagraph 3,within suchaperiod of
timeasdesignated bytheDirector-General ofCustoms within thelimitofoneyear) fromthedateof
import permit ofthesaidrawmaterials.
2. Theprovisions ofparagraphs 2to6and8ofArticle 13shallapply mutatis mutandis tothe
casewhere customs dutyisreduced orexempted under thepreceding paragraph. Inthiscase,thefirst
sentence ofparagraph 6ofArticle 13shallread"Therawmaterials customs dutyonwhich wasreduced
orexempted under paragraph 1ofArticle 19orthegoods manufactured from thesaidrawmaterials
shallnot,within twoyears (or,withregard togoods manufactured inaccordance withtheprovisions
ofparagraph 3ofthesaidArticle, within suchaperiod oftimeasdesignated bytheDirector-General
ofCustoms within thelimitofoneyear) from thedateoftheimport permit oftherawmaterials, be
offered foruseother thanthose asprovided forinthesaidparagraph oroffered foruseother than
exportation ortransferred sothattheymaybeoffered foruseother thanexportation."
3. When, incases where anygoods aremanufactured, withanapproval bytheDirector-General
ofCustoms under paragraph 4ofArticle 13,which isapplied mutatis mutandis inthepreceding
paragraph, fromtherawmaterials customs dutyonwhich wasreduced orexempted under paragraph 1
(hereinafter inthisArticle referred toas"rawmaterials formanufacturing export goods"), inmixture
withanyother rawmaterials ofasimilar kind, andthegoods somanufactured havethesame quality
asthose which would havebeenmanufactured solely fromtherawmaterials formanufacturing export
goods, aquantity ofrawmaterials formanufacturing export goods which isnecessary tomanufacture
thesaidexport goods shall, within thelimitofthequantity ofthesaidrawmaterials formanufacturing
export goods, asmaybeprescribed byaCabinet Order, beregarded asusedformanufacture ofthe
saidexport goods.
4. Thecustoms dutyreduced orexempted under paragraph 1shallforthwith becollected, inany
ofthecases asenumerated inanyofthefollowing subparagraphs, from anyperson found tocome
under anyofthesaidsubparagraphs. Inthiscase, theprovisions oftheproviso toparagraph 7of
Article 13shallapply mutatis mutandis :G/SG/N/1/JPN/2
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(1) When anapproval asprovided forintheproviso toparagraph 6ofArticle 13which
isapplied mutatis mutandis inparagraph 2isgiven withregard torawmaterials for
manufacturing export goods, orwhen thematerials formanufacturing export goods
areoffered foruseother thanthose asprovided forinparagraph 1without thesaid
approval oraretransferred sothattheymight beoffered foruseother thanthose as
provided forinthesaidparagraph, orwhen anapproval asprovided forintheproviso
toparagraph 6ofArticle 13which isapplied mutatis mutandis inparagraph 2isgiven
withregard tothegoods, orwhen thegoods areoffered foruseother thanexportation
oraretransferred sothattheymight beoffered foruseother thanexportation, without
thesaidapproval;
(2) when thereport asprovided forinparagraph 5ofArticle 13,which isapplied mutatis
mutandis inparagraph 2,isnotmade orthegoods arenotexported, within twoyears
(with regard tothegoods manufactured under paragraph 3,within theperiod oftime
asdesignated bytheDirector-General ofCustoms under paragraph 1)from thedate
ofimport permit ofthematerials formanufacturing export goods;
(3) when therawmaterials formanufacturing export goods areoffered formanufacture
ataplace other thanthemanufacturing factory approved bytheDirector-General of
Customs under paragraph 1orwhen theyareusedincontravention ofparagraph 4
ofArticle 13which isapplied mutatis mutandis inparagraph 2.
5. Forthepurpose ofapplication oftheprovisions concerning therefund ofcustoms dutyunder
paragraph 1,theexportation referred tointhesaidparagraph shallmean toinclude thereshipment
toanyforeign country ofanyforeign goods which aremanufactured fromtherawmaterials referred
tointhesaidparagraph inmixture withforeign goods which aretherawmaterials forHozei-work.
(Exemption fromorrefund ofcustoms dutyinthecaseofexport ofproducts manufactured fromduty-
paidrawmaterials, etc.)
Article 19-2. When, incases where anorder isreceived from aforeign country topurchase
anyproducts being manufactured atahozei manufacturing warehouse, itisconfirmed, asmaybe
prescribed byaCabinet Order, bytheDirector-General ofCustoms thatitisdifficult tomanufacture
theproducts from rawmaterials, which areforeign goods being usedatthehozei manufacturing
warehouse, andtoshipthemtoaforeign country within theperiod ofdelivery referred tointhepurchase
order, whereas theproducts manufactured atthehozei manufacturing warehouse fromrawmaterials
which arenotforeign goods butsimilar totheabove-mentioned rawmaterials (incaseofanyofthe
products asmaybeprescribed byaCabinet Order, theproducts manufactured fromrawmaterials which
arenotforeign goods) areshipped toaforeign country, there shallbeexempted from customs duty,
asmaybeprescribed byaCabinet Order, onforeign goods similar tothesaidrawmaterials which
aretobeimported bytheperson whomanufactured thesaidproducts within sixmonths fromthedate
ofexport permit (including permit ofreshipment; hereinafter inthenextparagraph referred toasthe
same) ofthesaidproducts, within thelimitofaquantity, tobeconfirmed bytheDirector-General
ofCustoms, ofrawmaterials, other thanforeign goods, which havebeenusedformanufacturing the
saidproducts (incases where anyother goods aremanufactured simultaneously intheprocess of
manufacturing thesaidproducts, aquantity asmaybeprescribed byaCabinet Order ascorresponding
tothesaidproducts outofthequantity ofthesaidrawmaterials).
2. When, incases where itisdeemed necessary touseduty-paid imported goods asrawmaterials
formanufacturing export goods inthecourse ofhozei-work atahozei manufacturing warehouse for
thereason thatstocks offoreign goods which areintended tobeusedasrawmaterials hadbeenused
uporforanyother reason, anditisdeemed difficult tohavetheprovisions ofthepreceding paragraphG/SG/N/1/JPN/2
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applied tothesituation, thesaidimported goods areentered, with aprior approval ofthe
Director-General ofCustoms, intothehozei manufacturing warehouse without anychange innature
andform atthetimeoftheirimportation within three months aftertheirimport permit andgoods
manufactured fromthesaidimported goods areexported, thecustoms dutypaidfortheimported goods
may, asmaybeprescribed byaCabinet Order, bewholly orpartially refunded.
3. Theprovisions ofArticle 54(Obligation ofRecordkeeping) andArticle 58(Report on
Hozei-work) oftheCustoms Lawshall apply mutatis mutandis tothegoods entered intoahozei
manufacturing warehouse, towhich theprovisions ofthepreceding paragraph isapplied.
[This Article hasbeenamended andthetranslation oftheamended Article isyettobedone.]
(Refund ofcustoms dutywhen imported goods arere-exported inthesame condition asimported)
Article 19-3. When thegoods thecustoms dutyonwhich hasbeenpaidinaccordance with
aCabinet Order arere-exported fromJapan without anychange innature andformatthetimeoftheir
importation, thecustoms dutymayberefunded, asmaybeprescribed byaCabinet Order, ifthesaid
goods aretobeexported fromJapan within oneyear(within suchlonger period exceeding oneyear,
asdesignated bytheDirector-General ofCustoms, when thereisareason tobelieve thatsuchalonger
period exceeding oneyearisinevitably necessary andifanapproval isgiven bytheDirector-General
ofCustoms under theprovision oftheCabinet Order) from thedateoftheirimport permit.
(Refund ofcustoms dutywhen claimed merchandise, etc.arere-exported ordestroyed)
Article 20.When anyduty-paid imported goods, which come under anyofthefollowing
subparagraphs, areexported (or,exported forreturn, inthecaseofthegoods asenumerated in
subparagraph (1)below) from Japan without change inthenature andform atthetimeoftheir
importation, there mayberefunded customs duty, asmaybeprescribed byaCabinet Order, ifthe
saidgoods have been entered intothehozei area(including such place asdesignated bythe
Director-General ofCustoms under subparagraph (2)ofArticle 30(restriction onplaces where foreign
goods maybestored) oftheCustoms Law; hereinafter inthenextparagraph referred toasthesame)
within sixmonths (incases where itisapproved bytheDirector-General ofCustoms, asmaybe
prescribed byaCabinet Order, thatthere isanunavoidable reason tohave alonger period than
sixmonths, within suchalonger period, asmaybedesignated bytheDirector-General ofCustoms,
exceeding sixmonths butnotexceeding oneyear; hereinafter inthenextparagraph referred toas
thesame) from thedateoftheirimport permit:
(1) Goods withrespect towhere itisfound tobeunavoidable toreturn them duetothe
difference inquality orquantity, etc.between suchgoods andthecontent ofthe
contract.;
(2) goods withrespect towhere itisfound tobeunavoidable toexport themforthereason
that,afterthetimeoftheirimportation, theirsaleoruseorsaleoruseofanygoods
manufactured fromthemisprohibited under legislation (including anydisposition made
thereunder).
2. When, incases where itisdeemed unavoidable todestroy theimported goods, asprovided
forinthepreceding paragraph, rather thantoreship them, theyareentered intoahozei areawithin
sixmonths from thedateoftheir import permit anddestroyed with aprior approval ofthe
Director-General ofCustoms, thecustoms dutypaidforthegoods, asmaybeprescribed byaCabinet
Order, maybewholly orpartially refunded.G/SG/N/1/JPN/2
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(Restriction, etc.onuseother thanthose specified goods towhich reduced rateswere applied)
Article 20-2. With regard togoods, asmaybeprescribed byaCabinet Order, forwhich the
ratesofcustoms dutyarefixed oncondition thatthegoods should beoffered forparticular usesas
specified intheAnnexed Tariff, anyperson whowishes toobtain thebenefit ofapplication oftherates
ofcustoms dutychargeable onsuchcondition thatgoods should beoffered forspecified uses(aslong
asthesaidrates ofcustoms dutyarelower thantherates ofcustoms dutywhich donotmake it
conditional thatthegoods should beoffered forspecified uses; hereinafter referred toas"reduced
rates") shallgothrough formalities asmaybeprescribed byaCabinet Order.
2. Thegoods towhich thereduced ratesreferred tointhepreceding paragraph wereapplied shall
not,within twoyears from thedateoftheirimport permit, beoffered foruseother thantheusefor
which thereduced rateswereapplied orbetransferred sothattheymaybeoffered foruseother than
thesaiduse.However, theforegoing provisions shallnotapply tothecasewhere anapproval ofthe
Director-General ofCustoms isgiven forunavoidable reasons asmaybeprescribed byaCabinet Order.
3. Inthecasewhere anapproval asprovided forintheproviso tothepreceding paragraph was
given tothegoods towhich thereduced ratesasprovided forinparagraph 1were applied orinthe
casewhere thesaidgoods were offered foruseother thantheuseforwhich thereduced rateswere
applied orweretransferred sothattheymight havebeenoffered foruseother thanthesaiduse,without
thesaidapproval, acustoms dutyequivalent tothedifference between theamount ofcustoms duty
calculated onthebasisoftherateofcustoms dutychargeable ifitisnotconditional thatthesaidgoods
should beoffered forspecified use,ontheonehand, andtheamount ofcustoms dutycalculated on
thebasis ofthesaidreduced rates, ontheother, shallforthwith becollected from theperson found
tocome under anyoftheaforementioned circumstances. Theprovisions oftheproviso toparagraph 7
ofArticle 13shallapply mutatis mutandis tothiscase.
(Offer foruseother thanthose specified ofgoods towhich reduction oforexemption from customs
duty, etc.wasapplied)
Article 20-3. Inthecaseswhere anygoods, towhich dutyexemption, dutyreduction orreduced
ratesofdutywereapplied under theprovisions ofparagraph 1ofArticle 13,paragraph 1ofArticle 15,
paragraph 1ofArticle 16,paragraph 1ofArticle 17,paragraph 1ofArticle 19orparagraph 1ofthe
preceding Article, areoffered foruseother thantheuseforwhich suchreduction orexemption or
reduced ratesordutywere applied oraretransferred sothattheymaybeoffered foruseother than
thesaiduse,when anyperson, whoistooffer them foruseother thanthesaiduseoristotransfer
them sothattheymaybeoffered foruseother thanthesaiduse,isrequired toobtain anapproval,
from theDirector-General ofCustoms forsuchanofferortransfer andwhen he(or,incases where
thegoods aretransferred sothattheymaybeoffered foruseother thanthesaidsue,theperson to
whom thegoods aretransferred) receives averification, asmaybeprescribed byaCabinet Order,
fromtheDirector-General ofCustoms thattheofferofthesaidgoods foruseother thanthesaiduse
meets theconditions fordutyreduction orexemption asprovided forintheprovisions ofthelaw
concerning reduction orexemption from customs duty(hereinafter inthenextparagraph referred to
as"reduction orexemption clause") andthuscomes under anyofthecases asmaybeprescribed by
aCabinet Order, thecustoms dutytobecollected under theprovisions ofparagraph 7ofArticle 13,
paragraph 2ofArticle 15,paragraph 2ofArticle 16,paragraph 4ofArticle 17,paragraph 4ofArticle 19
orparagraph 3ofthepreceding Article shallnotbecollected, notwithstanding theprovisions ofthese
Articles.
2. When theverification, asprovided forinthepreceding paragraph, isreceived from the
Director-General ofCustoms, theprovisions ofthisLawandtheCustoms Lawaswellasanyother
lawsrelating tocustoms dutyshallapply ontheassumption thatthegoods soverified shallberegardedG/SG/N/1/JPN/2
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asthegoods towhich, atatimeofsuchverification, areduction orexemption clause wasapplied for
theusesoverified andanimport permit wasgiven, andthattheperson soverified shallberegarded
asanimporter ofthegoods whoenjoyed thebenefit ofthereduction orexemption clause.
(Import-prohibited goods)
Article 21.Anygoods specified inanyofthefollowing subparagraphs shallnotbeimported:
(1) Narcoticdrugs,marijuana,opium,poppystraw,stimulants(includingtheirrawmaterials
stipulated bytheStimulants Control Law) andutensils foropium smoking, excluding
those imported bytheGovernment oranyperson whohasobtained anapproval of
theGovernment;
(2) counterfeit, altered orimitated articles ofcoins, paper money, banknotes orsecurities;
(3) books, drawings, carvings andanyother articles, toinjure public security ormorals;
(4) articles toinfringe upon rights inpatents, utility models, designs, trademarks, or
copyright orneighbouring right.
2. TheDirector-General ofCustoms shallbeauthorized toconfiscate anddestroy thegoods as
provided forinsubparagraph (1),(2)or(4)ofthepreceding paragraph, which aretobeimported,
ortoorder anyimporter toreship suchgoods.
3. Inthecasewhere thereareanygoods, withrespect towhich therearesufficient reason tobelieve
thattheycorrespond toanyofthearticles asspecified insubparagraph (3)ofparagraph 1,among goods
which areabout tobeimported inaccordance withtheprovisions ofChapter VIoftheCustoms Law,
theDirector-General ofCustoms shallnotify theperson whoistoimport thesaidgoods.
[This Article hasbeenamended andthetranslation oftheamended Article isyettobedone.]
(Customs Tariff Council)
Article 22.Forthepurpose ofinvestigation anddeliberation ofanyamendment totheAnnexed
Tariff andanyother important matters relating totherateofcustoms duty, upon referral from the
Minister ofFinance, thereshallbeestablished theCustoms Tariff Council intheMinistry ofFinance.
2. TheCustoms Tariff Council maysubmit totheMinister ofFinance arecommendation onthe
matters relating totherateofcustoms duty.
3. TheCustoms Tariff Council shallconsist ofnomore than45members.
4. Themembers oftheCouncil shallbeappointed bytheMinister ofFinance fromamong persons
oflearning andexperience inthefields offinance, industry andtrade, etc.Thetermofoffice shall
betwoyears. However, anymember maybereappointed.
5. Themember whowaselected asChairman oftheCustoms Tariff Council bymutual voteamong
themembers shallpreside overtheaffairs oftheCouncil.
6. Themembers shallserve onapart-time basis.G/SG/N/1/JPN/2
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7. Matters necessary fortheorganization andmanagement oftheCustoms Tariff Council, other
thanthose asprovided forinthepreceding paragraphs, shallbeprescribed byaCabinet Order.
(Territory regarded asaforeign country)
Article 23.Forthepurpose ofapplication ofthisLaw, theterritory ofJapan asmaybe
prescribed byaCabinet Order shall, forthetimebeing, beregarded asaforeign country.
Supplementary Provisions (Omitted)
Annexed Tariff (See"Customs Tariff Schedules ofJapan", published byJapan Tariff Association)