Japan, 2003
Chapter 1 : Tariffs[1] |
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Objective
APEC economies will achieve free and open trade in the Asia-Pacific region by:
a. progressive reduction of tariffs until the Bogor goals are fully achieved; and
b. ensuring the transparency of APEC economies’ respective tariff regimes.
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Guidelines
Each APEC economy will:
a. take into account, in the process of achieving the above objectives, intra-APEC trade trends, economic interests, sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region and developments in the new economy;
b. ensure that the achievement of the above objective is not undermined by the application of unjustifiable measures; and
c. consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements.
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Collective Actions
APEC economies will:
a. participate and ensure the expeditious supply and updates of the WTO Integrated Database and any other APEC databases;
b. arrange for seminars and/or workshops on industrial tariffs negotiations in consultation with international organisations, where appropriate, including WTO Secretariat on WTO Integrated Tariff Database;
c. study lessons from modalities for tariff reduction and elimination in regional arrangements; and
d. encourage the accession of all economies to the WTO Information Technology Agreement, including the adoption of ITA provisions by non-members of the WTO.
The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan |
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Japan’s Approach to Tariffs in 2003
Japan supports the launch of comprehensive multilateral trade negotiations.
Market information is on
the following webstite of JETRO(Japan External Trade Organization): http://www.jetro.go.jp/ec/e/ma
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Case Study of a Tariff Liberalization Initiative
Based on results of the second review on the Tariff Elimination Initiative on pharmaceuticals, Japan eliminated 576 extra products starting July 2000 |
Japan’s Approach to Tariffs in 2003 |
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Section |
Improvements Implemented Since Last IAP |
Current Tariff Arrangements |
Further Improvements Planned |
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Bound Tariffs
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Tariff Reductions in accordance with the Uruguay Round agreements.
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In 2003, average bound rates are2.5percent for all goods, which is very low rate by international comparison , 9.8percent for agricultural procucts, 4.5percent for fish and fish products, 1.5percent for wood, pulp, paper, and furniture.
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Japan will consider progressively reducing tariffs.
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Applied Tariffs
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In April 2002, Japan voluntarily reduced or eliminated tariffs on 5 items (HS 9- digit) from the industrial sector and abolished a tariff quota for vodka. Following liberalization of the import of salt, non-tariff border measures on salt were replaced by tariffs on refined salt. It should also be noted that tariffs on crude oil and 11types of petroleum products were reduced and that tariffs on 17 types of alcoholic beverages were eliminated (HS 9-digit). |
In 2003, average applied rates are 3.5 percent for all goods, which is a very low rate by international comparison, 15.3percent for the agricultural products, 4.4percent for fish and fish products, 2.0percent for wood, pulp, paper, and furniture. |
Tariffs on crude oil will be eliminated in FY2006. Tariffs on refined salt will be reduced progressively from FY 2003 to FY 2005.
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Tariff Quotas
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Tariff Quotas for alcohol intended for use in distilling alcohol for making alcoholic beverages, through a continuous still were abolished. |
Tariff Quotas are applied to 29 groups for all goods, 24 groups for agricultural sector, and 5 groups for industrial products.
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Tariff Preferences
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The number of LDC’s agricultural and fishery products under duty-free and quota-free treatment increased from 298 items to 496 items.
The number of products under the GSP, which benefits not only LDCs but also other developing countries, were increased by 119 items For further information, http://www.mofa.go.jp/policy/e
In January 2002, Japan signed an agreement with Singapore (The Japan-Singapore Economic Agreement for a New Age Partnership) to set up a bilateral free trade area in accordance with the WTO Agreement. This agreement came into force in November 2002.
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Japan’s Generalized System of Preference (GSP) is designed to support the economic development of developing economies. Japan grants preferential treatment to 148 developing countries and 15 territories and special treatment for LDCs（tariff-and quota-free access）to 47 countries.
Under the GSP, tariff cuts on agricultural and fisheries products vary, but include duty-free treatment, and GSP tariff rates on industrial and forestry products are in principle free except for some items.
For further information,
http://www.mofa.go.jp/policy/e
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We are determined to continue to work towards the objective of duty-free and quota-free market access for all LDCs' products.
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Japan is working to ensure transparency by immediately announcing any changes in tariff rates and the tariff system in the “Kanpo” (government gazette) and on the Internet, and by annually publishing “Customs Tariff Schedules of Japan”.
http://www.mof.go.jp/jouhou/ka
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Improvements in Japan’s Approach to Tariff Measures since 1996 |
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Section |
Position at Base Year (1996) |
Cumulative Improvements Implemented to Date |
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Bound Tariffs
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As a result of the Uruguay Round, average bound rates were 7.4 percent for all goods, 30.3 percent for agricultural products, 3.6 percent for industrial products, where 3.7 percent for wood, pulp, paper, and furniture 5.5 percent for fish and fish products, one of the lowest rates by international comparison.
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In 2003, average bound rates are 2.5percent for all goods, which is a very low rate by international comparison, 9.8percent for the agricultural procucts, 4.5 percent for fish and fish products, 1.5 percent for wood, pulp, paper, and furniture. Japan also agreed to the mutual elimination of tariffs on such products as pharmaceuticals, construction equipment, medical equipment, steel, furniture, agricultural machinery, paper, and pulp. Japan voluntarily offered to eliminate these tariffs on electronics.
Japan has steadily implemented the Information Technology Agreement (ITA).
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Applied Tariffs
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In 1996, average applied rates were 5.0 percent for all goods, which was very low rate in the world, 23.2 percent for agricultural products, 2.5 percent for industrial products, where 1.7 percent for wood, pulp, paper and furniture, 5.1 percent for fish and fish products.
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In 2003, average applied rates are 3.5percent for all goods, which is a very low rate by international comparison, 15.3percent for the agricultural procucts, 4.4percent for fish and fish products, 2.0percent for wood, pulp, paper, and furniture. Japan has voluntarily reduced/eliminated tariffs on 46 items from the industrial sector and 45 items from the agricultural sector (total of 91 items, based on HS9-digit classification) since 1996.
In April 1997, Japan implemented a voluntary tariff elimination on 4 items (HS9-digit), a voluntary tariff reduction on 14 items (HS9-digit) from the industrial sector, and a voluntary tariff reduction on 11 items (HS9-digit) from the agricultural sector.
In April 1998, Japan implemented a voluntary tariff elimination on 8 items (HS 9-digit), a voluntary tariff reduction on 3 items (HS 9-digit) from the industrial sector, and a tariff reduction on 22 items (HS 9-digit) from the agricultural sector.
In April 1999, Japan implemented a voluntary tariff elimination on 6 items (HS9-digit) and a voluntary tariff reduction on 2 items (HS9-digit) from the industrial sector.
In April 2000, Japan implemented a voluntary tariff elimination on 3 items (HS 9-digit) from the industrial sector, and a voluntary tariff reduction on 10 items (HS 9-digit) from the agricultural sector. In April 2001, Japan also voluntarily eliminated the tariff on 1 item (HS 9-digit) from the industrial sector and reduced the tariff on 1 item (HS 9-digit) from the agricultural sector.
In April 2002, Japan also voluntarily reduced tariff on 4 items(HS 9-digit) and eliminated tariff on 1 item(HS 9-digit)from the industrial sector and eliminated tariff on 1 item(HS 9-digit) from the agricultural sector.
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Tariff Quotas
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Tariff Quotas were applied to 31groups for all goods, 26 groups for agricultural sector and 5 groups for industrial products.
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In FY 1999, Tariff Quota for steam-flake corn was abolished. In FY 2002, Tariff Quota for vodka was abolished. In FY 2003, Tariff Quotas for alcohol intended for use in distilling alcohol for making alcoholic beverages, through a continuous still vodka were abolished. |
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Tariff Preferences
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Japan had a Generalized System of Preferences designed to support the economic development of developing economies. Under the scheme, GSP tariff rates on agricultural and fisheries products were 10-100 percent less than MFN rates, and those for industrial and forestry products were in principle free except for some items.
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In FY2001, the 10-year application of the GSP was renewed and the GSP was revised to simplify its procedures, and to strengthen support for the economic development of developing economies. Through this revision, Japan significantly expanded tariff- and quota-free access for the exports of LDCs.
Graduation of advanced beneficiaries was implemented in order to enhance the benefits for less developed countries: 1) Since 1998, at first, partial graduation has started to mitigate the impact of graduating economies. 2) In 2000, graduation was put into force and advanced beneficiaries of 9 countries and 10 territories were excluded from GSP treatment.
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The number of LDC’s agricultural and fishery products under duty-free and quota-free treatment was increased from 298 items to 496 items. The number of products under the GSP, which benefits not only LDCs but also other developing countries, increased by 119 items.
In January 1996, Japan expanded, as one of its Osaka Initial Actions, the range of items exempt from the requirement of submitting a certificate of origin (Form A) when importing goods from developing countries with regard to applying preferential tariffs under Japan’s GSP . |
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Transparency of Tariff Regime
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Japan worked to ensure transparency by immediately announcing any changes in tariff rates and the tariff system in the “Kanpo” (government gazette), and by annually publishing “Customs Tariff Schedules of Japan”.
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Japan announces changes in tariff rates and the tariff system not only in the “Kanpo” but also on the Internet. In addition, the Japanese government started to releaseannually the outline of the Law to Amend the Customs Tariff Law on the Internet. |
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(PLEASE COMPLETE BOXES) |
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All Goods |
Agriculture excluding Fish |
Fish and Fish Products |
Petroleum Oils |
Wood, Pulp, Paper and Furniture |
Textiles and Clothing |
Leather, Rubber, Footwear and Travel Goods |
Metals |
Chemical & Photographic Supplies |
Transport Equipment |
Non-Electric Machinery |
Electric Machinery |
Mineral Products, Precious Stones & Metals |
Manufactured Articles, n.e.s |
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ITEM |
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Bound tariff lines as a percentage of all lines |
98.9% |
99.9% |
88.1% |
40.4% |
93.3% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
99.4% |
100.0% |
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Duty-free tariff lines as a percentage of all lines |
36.1% |
24.5% |
8.6% |
10.6% |
49.0% |
2.3% |
32.9% |
35.1% |
32.9% |
99.3% |
100.0% |
96.4% |
76.2% |
67.2% |
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Preferential tariff lines as a percentage of all lines |
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Generalized System of Preference (GSP) |
39.0% |
17.9% |
15.6% |
14.9% |
47.1% |
56.5% |
24.1% |
64.9% |
74.8% |
0.7% |
0.0% |
4.4% |
22.4% |
32.0% |
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Japan-Singapore Economic Partnership Agreement (JSEPA) |
76.2% |
21.9% |
8.6% |
61.7% |
71.2% |
99.9% |
34.9% |
100.0% |
96.9% |
100.0% |
00.0% |
100.0% |
99.4% |
96.0% |
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Ratio of tariff lines with quotas to all lines |
1.8% |
5.9% |
0.0% |
0.0% |
0.0% |
0.0% |
13.8% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
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Simple average bound tariff rate |
8.0% |
23.8% |
5.0% |
3.4% |
1.9% |
7.1% |
20.5% |
1.1% |
2.5% |
0.1% |
0.0% |
0.2% |
0.8% |
1.4% |
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Simple average applied tariff rate |
7.5% |
21.5% |
6.0% |
3.5% |
1.7% |
7.0% |
20.5% |
1.0% |
2.5% |
0.1% |
0.0% |
0.2% |
0.9% |
1.3% |
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Simple average applied preferential tariff rate - indicate for each preferential arrangement |
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Generalized System of Preference (GSP) |
1.8% |
3.8% |
5.8% |
0.0% |
0.9% |
3.6% |
3.6% |
0.1% |
0.1% |
0.0% |
- |
0.0% |
0.2% |
0.2% |
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Japan-Singapore Economic Partnership Agreement (JSEPA) |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
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Average applied tariff rate for all lines subject to duty |
11.8% |
28.7% |
6.5% |
4.0% |
3.4% |
7.2% |
30.6% |
1.6% |
3.7% |
8.4% |
- |
4.3% |
3.7% |
4.1% |
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Import-weighted average applied tariff rate - specify FOB or CIF |
2.5% |
9.8% |
4.5% |
0.9% |
1.5% |
8.8% |
11.3% |
0.6% |
2.0% |
0.0% |
0.0% |
0.1% |
0.3% |
0.7% |
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Import-weighted average bound tariff rate - specify FOB or CIF |
3.5% |
15.3% |
4.4% |
3.6% |
2.0% |
8.9% |
11.3% |
0.6% |
2.0% |
0.0% |
0.0% |
0.1% |
0.3% |
0.7% |
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Notes
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1. Data used
For the purpose of calculating tariff indicators, fiscal year 2003 tariff rates as of 1st of April (hereinafter in this Section referred to as the same) based on the HS-based FY 2003 statistical codes (9-digits) and the import values and quantities of calendar year 2002 were used.
(Note) The term "tariff" includes levies or markups, as appropriate.
2. Product coverage
In order to make consistency with the product coverage agreed at the Uruguay Round, necessary adjustments were made i.e. those adjustments specified in Annex 2 were made to the IAP Format Guidelines coverage in Annex 1.
3. The calculation method of tariff rate other than ad valorem duty rates:
(1) Specific duty items : (specific duty x import quantity) ÷ import value x 100
(2) Selective duty items : the ad valorem equivalent was calculated for the specific duty portion as (1) above; the appropriate tariff rate was applied after comparing the ad valorem equivalent with the ad valorem duty.
(3) Compound duty items : the ad valorem equivalent was calculated for the specific duty portion as (1) above; the sum of the ad valorem equivalent and the ad valorem duty was applied.
(4) Price differential duty items : firstly, unit customs value was calculated based on import quantities and values; then, the ad valorem equivalent was calculated for the difference between the unit customs value and the reference import price.
(5) Special selective duty items (which compare the ad valorem level with the compound duty level) : firstly, the compound duty level was calculated; then, the appropriate rate was applied after comparing the ad valorem duty level with the compound duty level.
(6) As for import data, while the FY 2002 data (i.e. April 2002 to March 2003) should have been used, the calendar year 2002 data were used, due to technical reasons.
4. Treatment in case where ad valorem equivalent cannot be calculated because no imports were recorded or the unit for duty does not correspond to that for trade statistics.
(1) Specific duty items : "0" per cent was applied.
(2) Selective duty items : only ad valorem duty portion was applied.
(3) Compound duty items : only ad valorem duty portion was applied.
(4) Price differential duty items : "0" per cent was applied.
(5) Special selective duty items (which compare the ad valorem duty level with the compound duty level) : after calculating the ad valorem equivalent, the appropriate rate was applied.
(Note 1) Cases where "0" per cent was drawn as a result of the treatment mentioned in the Section 4 above, were excluded from calculations of simple average rate.
(Note 2) As for the out of tariff quota rates, even if there were no imports recorded under such tariff line, the ad valorem equivalent was calculated by using data of their corresponding in-quota imports.
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APEC INDIVIDUAL ACTION PLAN: TARIFF DISPERSION TABLE FOR 2003 |
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(PLEASE COMPLETE BOXES) |
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All Goods |
Agriculture excluding Fish |
Fish and Fish Products |
Petroleum Oils |
Wood, Pulp, Paper and Furniture |
Textiles and Clothing |
Leather, Rubber, Footwear and Travel Goods |
Metals |
Chemical & Photographic Supplies |
Transport Equipment |
Non-Electric Machinery |
Electric Machinery |
Mineral Products, Precious Stones & Metals |
Manufactured Articles, n.e.s |
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NUMBER OF TARIFFS AT OR BETWEEN |
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0% |
3,359 |
444 |
28 |
5 |
228 |
49 |
143 |
310 |
386 |
150 |
592 |
373 |
262 |
389 |
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0%<X<=5% |
2,292 |
185 |
153 |
16 |
159 |
269 |
27 |
523 |
749 |
0 |
0 |
14 |
65 |
132 |
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5%<X<=10% |
1,850 |
247 |
112 |
1 |
78 |
1,221 |
72 |
17 |
31 |
1 |
0 |
0 |
15 |
55 |
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10%<X<=15% |
542 |
169 |
27 |
0 |
0 |
309 |
37 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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15%<X<=20% |
144 |
103 |
1 |
0 |
0 |
0 |
39 |
0 |
0 |
0 |
0 |
0 |
0 |
1 |
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>20% |
455 |
363 |
3 |
0 |
0 |
0 |
89 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
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Specific |
661 |
302 |
3 |
25 |
0 |
258 |
28 |
33 |
8 |
0 |
0 |
0 |
2 |
2 |
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TOTAL |
9,303 |
1,813 |
327 |
47 |
465 |
2,106 |
435 |
883 |
1,174 |
151 |
592 |
387 |
344 |
579 |
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Note |
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Annex 1
Explanatory Notes of the IAP Format Guidelines
SECTOR HARMONIZED SYSTEM CODES
All Goods Chapters 1-97
Agriculture excluding FishChapters 1-2; 4; 5(except 0509.00); 6-14; 15(except 1504); 16-22; 23(except 2301); 24; 2905.43-2905.45; 3301; 3302.10; 3501-3505; 3809.10; 3823; 3824.60; 4101-4103; 4301; 5001-5003; 5101-5103; 5201-5203; 5301-5302
Fish and Fish Products Chapter 3; 0509.00; 1504; 2301
Petroleum Oils 2709-2710
Wood， Pulp， Paper and Furniture Chapters 44-45; 47-49; 94
Textiles and Clothing Chapters 50(except 5001-5003); 51(except 5101-5103); 52(except 5201-5203); 53(except 5301-5302); 54-63
Leather， Rubber， Footwear and Travel Goods Chapters 40; 41(except 4101-4103); 42; 43(except 4301); 64
Metals Chapters 26; 72-83
Chemical & Photographic SuppliesChapters 28; 29(except 2905.43-2905.45); 30; 32; 33(except 3301，3302.10); 34; 35(except 3501-3505); 36-37; 38(except 3809.10，3823，3824.60); 39
Transport Equipment Chapters 86-89
Non-Electric Machinery Chapter 84
Elecetric Machinery Chapter 85
Mineral Products， Precious Stones & Metals Chapters 25; 27(except 2709-2710); 31; 69-71
Manufactured Articles， n.e.s Chapters 46; 65-68; 90-97
Annex 2
List of adjustments made to the IAP Format Guidelines coverage
１．From “agricultural products” to “fishery products”
0106.12; 0208.20; 0208.40; 0210.92; 0507.90-090; 0508; 0511.91; 1212.20; 1302.31; 1521.90-091; 1603.00-090; 1604; 1605; 2106.90-273; 2106.90-297; 2106.90-298; 2309.90-294
２．From “agricultural products” to “leather, rubber, footwear and travel goods”
4101.20-113; 4101.20-211; 4101.20-212; 4101.50-113; 4101.50-211; 4101.50-212; 4101.90-113; 4101.90-211; 4101.90-212; 4102.21-090; 4102.29-090; 4103.10-090; 4103.20-019; 4103.20-029; 4103.20-039; 4103.20-049; 4103.20-099; 4103.30-200; 4103.90-019; 4103.90-029; 4103.90-099
３．From “agricultural products” to “chemical & photographic supplies”
3302.10
４．From “fishery products” to “agricultural products”
2301.10-090
５．From “petroleum oils” to “chemical & photographic supplies”
2710.91; 2710.99
６．From “non-electric machinery” to “electric machinery”
8414.80-092; 8414.90-099; 8419.39; 8419.89; 8419.90; 8422.30; 8422.40; 8422.90; 8424.30; 8424.90-090; 8467.21; 8467.22; 8467.29
７．Chapter 94 is not included in “manufactured articles, n.e.s.” but “wood, pulp, paper and furniture”
[1] “Tariffs” here refers to import/export tariffs as well as tariff quotas.
Chapter 2 : Non-Tariff Measures[1] |
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Objective
APEC economies will achieve free and open trade in the Asia-Pacific region by:
a. progressively reducing NTMs to the maximum extent possible to minimize possible distortion to trade;
b. in respect to WTO members: · Elimination of any measures inconsistent with WTO agreements · Full compliance with WTO agreements in accordance to WTO commitments; and
c. ensuring the transparency of APEC economies’ respective non-tariff measures.
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Guidelines
Each APEC economy will:
a. take into account, in the process of progressive reduction of non-tariff measures, intra-APEC trade trends, economic interests, sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region and developments in the new economy;
b. ensure that the progressive reduction of non-tariff measures is not undermined by the application of unjustifiable measures;
c. consider extending, on a voluntary basis, to all APEC economies the benefits of reductions and eliminations of non-tariff measures derived from sub-regional arrangements; and
d. ensure that measures to promote the new economy and strengthening the functioning of markets are consistent with the objectives above.
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Collective Actions
APEC economies will:
a. pursue incorporation of information on non-tariff measures into a future version of the APEC tariff database and compile a list of measures recognized as non-tariff impediments and a list of products affected by these impediments;
b. identify industries in which the progressive reduction of non-tariff measures may have positive impact on trade and on economic growth in the Asia-Pacific region or for which there is regional industry support for early liberalization;
c. progressively reduce export subsidies with a view to abolishing them;
d. abolish unjustifiable export prohibitions and restrictions and endeavor to refrain from taking any such new measures;
e. pursue a series of seminars/policy discussions on non-tariff measures (NTMs); and
f. undertake research to develop best practices to enhance transparency and progressively reduce NTMs
The current CAP relating to non-tariff measures can be found in the Tariffs and Non-Tariff Measures Collective Action Plan.
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Japan’s Approach to Non-Tariff Measures in 2003
The import/export prohibitions and restrictions that Japan implements are in accordance with relevant provisions of the WTO agreements or in order to fulfil obligations under other international agreements, such as the Montreal Protocol.
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Japan had applied a special treatment on rice imports under the WTO Agreement on Agriculture since 1995. But it has been replaced by a tariff scheme since April 1999, in accordance with Annex 5 of the Agreement on Agriculture.
Japan’s Approach to Non-Tariff Measures in 2003 |
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Section |
Improvements Implemented Since Last IAP |
Current Non-Tariff Measures Applied |
Further Improvements Planned |
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Quantitative Import Restrictions/ Prohibitions
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No further action taken
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The import/export prohibitions and restrictions that Japan implements are in accordance with the special exemption provisions and other relevant provisions of the WTO agreements and/or necessary to fulfill obligations under other international agreements, such as the Montreal Protocol. |
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Quantitative Export Restrictions/ Prohibitions
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No further action taken |
Japan's export restrictions are limited to those stipulated under international agreements or those necessary to protect the public safety and national security.Such restrictions include: 1) Export licensing measures taken for reasons of international security 2) Export prohibitions, quantitative restrictions and licensing measures based on international agreements (e.g. the Montreal Protocol, the Basel Convention and the CITES) |
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Import Levies
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No further action taken |
None |
No further action planned |
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Export Levies
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No further action taken |
None |
No further action planned |
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Discretionary Import Licensing
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No further action taken |
None |
No further action planned |
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Automatic Import Licensing
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No further action taken |
None |
No further action planned |
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Discretionary Export Licensing
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No further action taken |
None |
No further action planned |
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Voluntary Export Restraints
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No further action taken |
All abolished, except the measure indicated in the Annex to the Agreement on Safeguards. |
No further action planned |
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Export Subsidies
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No further action taken |
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Minimum Import Prices
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Measures Maintained
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Improvements in Japan’s Approach to Non-Tariff Measures since 1996 |
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Section |
Position at Base Year (1996) |
Cumulative Improvements Implemented to Date |
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Position
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The import/export prohibitions and restrictions that Japan implements were in accordance with the special exemption provisions and other relevant provisions of the WTO agreements or in order to fulfil obligations under other international agreements, such as the Montreal Protocol.
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The Government of Japan has brought a new electronic system (JETRAS-Japan Electronic Open Network Trade Control System) to full operation in April 2000 to expedite import/export processing of goods into/from Japan. This system allows filing for import-export permits and approvals under provisions of the Foreign Exchange and Foreign Trade Law.
Trade Control Policy Division Ministry of Economy, Trade and IndustryTel: +81-3-3501-0538Fax: +81-3-3501-5896 |
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Quantitative Import Restrictions/ Prohibitions
|
As a result of the Uruguay Round negotiations, Japan abolished quantitative restrictions on all agricultural products and converted them into customs duties. |
Special treatment on rice imports has been replaced by a tariff scheme since April 1999.
Ethyl alcohol of an alcoholic strength by volume of 90% vol or higher has been imported under state monopoly, exempt from tariff. This state monopoly was abolished in April 2001, and any person who is permitted to import alcohol under the Alcohol Business Law is now able to import ethyl alcohol of an alcoholic strength by volume of 90% vol or higher intended for use in distiling industrial alcohol free of tariff. |
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Quantitative Export Restrictions/ Prohibitions
|
Japan's export restrictions were limited to those stipulated under international agreements or those necessary to protect the public safety and national security. Such restrictions include; (1) Export licensing measures taken for reasons of international security (2) Export prohibitions, quantitative restrictions and licensing measures based on international agreements(e.g. the Montreal Protocol, the Basel Convention and the CITES) |
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Discretionary Import Licensing
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Discretionary Export Licensing
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Japan abolished the monitoring of automobile exports to the European Communities at the end of 1999. |
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Measures Maintained
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[1] These non-tariff measures include but are not restricted to quantitative import/export restrictions/prohibitions, import/export levies, minimum import prices, discretionary import/export licensing, voluntary export restraints and export subsidies.
Chapter 3 : Services |
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Objective
APEC economies, in accordance with the APEC Policy Framework for Work on Services, will achieve free and open trade and investment in the Asia-Pacific region by:
a. progressively reducing restrictions on market access for trade in services;
b. progressively providing for inter-alia most favored nation (MFN) treatment and national treatment for trade in services;
c. providing, in regulated sectors, for the fair and transparent development, adoption and application of regulations and regulatory procedures for trade in services; and
d. recognising the role that e-commerce plays in the supply and consumption of services.
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Guidelines
Each APEC economy will:
a. contribute positively and actively to the WTO negotiations on trade in services;
b. expand commitments under the General Agreement on Trade in Services (GATS) on market access and national treatment and eliminate MFN exemptions where appropriate;
c. undertake further actions, where appropriate, to implement the APEC Menu of Options for Voluntary Liberalization, Facilitation and Promotion of Economic and Technical Cooperation in Services Trade and Investment;
d. make efforts to provide for the participation of concerned parties in regulations and regulatory processes, the fair and transparent application of regulations, and the prompt consideration of applications; and
e. support APEC capacity building efforts to supply services by, inter-alia, strengthening infrastructure, promoting the use of advanced technologies and developing human resources.
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Collective Actions
APEC economies will take the following Collective Actions with regard to services in the telecommunications, transportation, energy and tourism sectors[1], and continue to seek Collective Actions in other sectors
TELECOMMUNICATIONS
a. work to bridge the digital divide at the domestic, regional and global levels, and to cooperate and collaborate with the business/private sector in this effort;
b. foster discussion between business/private sector and governments on appropriate means to assess and reward the value of products and services exchanged in the provision of converged Internet services among APEC economies, consistent with the APEC Principles on International Charging Arrangements for Internet Services;
c. foster the development of effective policies that support competitive markets in the domestic and international telecommunications and information industries;
d. accelerate the pace of implementation of the Mutual Recognition Arrangement on Conformity Assessment for Telecommunications Equipment (MRA);
e. work to ensure that policy and regulatory environments better foster the uptake of e-commerce;
f. implement within voluntary time frames the APEC Interconnection Principles and consult on the need for further discussions on interconnection; and
g. give attention to user requirements for open standards and systems to support interoperability
In addition, APEC economies are encouraged to conform, where appropriate, to:
1. The WTO Telecommunications Regulatory Principles Reference Paper;
2. The Information Technology Agreement (ITA); and
3. The Guidelines for Trade in International Value-Added Network Services (IVANS).
TRANSPORTATION
a. respond to the Leaders ‘Auckland Challenge’ of 1999, by implementing the eight steps for more competitive air services on a voluntary basis and by identifying further steps to liberalize air services in accordance with the Bogor Goals, and provide annual progress reports to Leaders through SOM (Note: some components of this project may fall under Part II Ecotech, subject to further developments);
b. develop by 2005 an efficient, safe and competitive operating environment for maritime transport, including ports, in the region through improved transparency of maritime and port policies (Note: some components of this project may fall under Part II Ecotech, subject to further developments);
c. complete the Road Transport Harmonization Project and encourage the development of mutual recognition arrangements for certification of automotive product and harmonization of economies’ vehicle regulations through cooperation within United Nations Economic Commission for Europe; and
d. seek to eliminate the requirement for paper documents (both regulatory and institutional) for the key messages relevant to international transport and trade as soon as practicable by 2005.
ENERGY
APEC Economies, by developing and building on the 14 non-binding policy principles endorsed by APEC Energy Ministers at their Sydney meeting in 1996 which are consistent with the vision, objectives and strategic themes of the recently endorsed Future Directions Strategic Plan that will guide their work over the next five years:
a. will facilitate trade and investment in the energy sector by
i. responding to the outcomes of a current study on "Strengthening the Operational Aspects of APEC Energy Micro -Economic Reform" that will, inter-alia, inform on barriers to investment in the energy sector and how to remove the barriers.
ii. analysing the broad economic impacts of micro-economic reform policies to deregulate energy markets.
iii. responding as appropriate to the identification of the barriers (policy, technical, regulatory and legal) to the interconnection of power grids in APEC member economies.
iv. actively pursuing the Implementation Strategy and considering the use of Implementation Facilitation Assistance Teams (IFAT) to assist in further reform of the energy markets.
v. strengthening policy dialogue among member economies on important issues affecting energy markets.
vi. supporting the APEC 21st Century Renewable Energy Development Initiative which seeks to advance the use of renewable energy for sustainable economic development and growth in member economies.
vii. encouraging in the longer term a greater strategic input from business through the Energy Working Group Business Network (EBN).
b. will seek to reduce barriers to trade created by differing energy performance test methods and energy performance requirements by supporting the establishment of an APEC Energy Efficiency Test Procedures Coordinator.
c. will strengthen energy security in the region by developing and implementing an energy security initiative with the aim of improving the functioning of energy markets; energy efficiency and conservation; diversification of energy resources; renewable energy development and deployment; and enhance short term preparedness such as oil stocks and surge production of oil; and explore the potential for alternative transport fuels
TOURISM
APEC economies will:
a. Remove impediments to tourism business and investment by: (i) promoting and facilitating the mobility of skills, training and labor; (ii) promoting and facilitating productive investment in tourism and associated sectors; (iii) removing regulatory impediments to tourism business and investment; and (iv) encouraging liberalization of services trade related to tourism under General Agreement on Trade in Services (GATS)
b. Increase mobility of visitors and demand for tourism goods and services in the APEC region by: (i) facilitating seamless travel for visitors; (ii) enhancing visitor experiences; (iii) promoting inter- and intra-regional marketing opportunities and cooperation; (iv) facilitating and promoting e-commerce for tourism business; (v) enhancing safety and security of visitors; and (vi) fostering a non-discriminatory approach to the provision of visitor facilities and services.
c. Sustainably manage tourism outcomes and impacts by: (i) demonstrate an appreciation and understanding of natural environment and seek to protect the environment (ii) foster ecologically sustainable development opportunities across the tourism sector, particularly for small and medium sized enterprises, employment and providing for open and sustainable tourism markets (iii) protect the social integrity of host communities with particular attention to the implications of gender in the management and development of tourism (iv) recognize, respect and preserve local and indigenous cultures together with our natural and national cultural heritage (v) enhance capability building in the management and development of tourism.
d. Enhance recognition and understanding of tourism as a vehicle for economic and social development by: (i) harmonizing methodologies for key tourism statistical collections, consistent with activities of other international tourism organizations (ii) facilitating the exchange of information on tourism between economies (iii) promoting comprehensive analysis of the role of tourism in member economies in promoting sustainable growth (iv) expanding our collective knowledge base on tourism issues in order to identify emerging issues and assist in the implementation of the Seoul Declaration on an APEC Tourism Charter.
The current CAP relating to services can be found in the Services Collective Action Plan
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Japan’s Approach to Trade in Services in 2003
Japan is one of the few countries that made commitments during the Uruguay Round to liberalize trade in services in more than 100 areas.
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Chapter 3: Japan’s General Approach to Trade in Services in 2003*Competition Policy will be dealt with in the Competition Policy Chapter (link) |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
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Foreign Investment or Right of Establishment (including Joint Venture Requirements)
|
No further action taken
|
Japan made commitments to liberalize trade in services through commercial presence in more than 100 areas during the Uruguay Round. |
No further action planned. |
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Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees
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No further action taken |
Foreign people who engage in providing services can enter and reside in Japan with the status of residence such as “Intra-company Transferee” under the Immigration Control and Refugee Recognition Act.
Concerning the entry and temporary stay of a natural person, Japan liberalized the restrictions on mode 4 in the GATS as follows.
(a) A natural person who has been employed by a juridical person of a Member other than Japan for a period of not less than one year immediately preceding the date of his application for the entry and temporary stay in Japan, and who is being transferred to a branch office or a juridical person constituted or registered in Japan owned or controlled by the aforementioned juridical person of a Member other than Japan, provided that he will be engaged in certain activities.
(b)A natural person who has been employed by a juridical person of a Member other than Japan or has been a partner in it for a period not less than one year immediately preceding the date of his application for the entry and temporary stay in Japan, and who is being transferred to Japan, provided that he will be engaged in certain activities of professional services which may be engaged only as a natural person and not as an employee.
(c)A natural person who stays in Japan for a time period not exceeding 90 days without acquiring remuneration from within Japan and without engaging in making direct sales to the general public or in supplying services himself, for the purposes of participating in business contacts including negotiations for the sale of services and/or other similar activities including those to prepare for establishing commercial presence in Japan.
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No further action planned. |
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Foreign Exchange Control/ Movement of Capital
|
No further action taken |
Bill to revise a part of Foreign Exchange and Foreign Trade Control Law was approved and established in the diet session of May ’97. The necessary revisions of the relevant ordinances were gone through. A new Foreign Exchange and Foreign Trade Law and such ordinances came into force on the first of April ’98. There are 4 major points involved in the amended law. First point is liberalization of cross-border capital transactions. In other words, license or prior notification requirements has been abolished in principle pertaining to the settlement and the capital transactions with foreign individuals and companies. Second point is the complete liberalization of the foreign exchange business. This involves the abolition of the authorized foreign exchange bank system, the designated securities firm system and the money exchange business system. Regulations related to foreign exchange business are removed, and free entry and exit into and from foreign exchange business has been guaranteed. Third point is development of ex-post reporting system. This is to prepare a ex-post reporting system in a comprehensive and reinforced way under which the balance of payments related statistics are to be compiled and also to have efficient and effective information in reporting system pertaining to the cross-border capital transactions for the sake of gaining appropriate and precise developments in the market trends. The last point involves responses to the international requirements for the economic sanction and such. We had assured for ourselves a mechanism to enable us to flexibly and effectively conduct economic sanctions and others at the requirements of the international community.
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No further action planned. |
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Other Generic Requirements Applied to Trade in Services
|
No further action taken |
Japan does not have generic restrictions applied to trade in services. |
No further action planned. |
Chapter 3: Improvements in Japan’s Approach to Trade in Services since 1996 |
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|
Section |
Position at Base Year (1996) |
Cumulative Improvements Made to Date |
|
General PolicyPosition
|
Japan is one of the few countries that made commitments during the Uruguay Round to liberalize trade in services in more than 100 areas.
|
No further action taken |
|
Foreign Investment or Right of Establishment (including Joint Venture Requirements)
|
Japan made commitments to liberalize trade in services through commercial presence in more than 100 areas during the Uruguay Round. |
No further action taken |
|
Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees
|
Foreign people who engage in providing services can enter and reside in Japan with the status of residence such as “Intra-company Transferee” under the Immigration Control and Refugee Recognition Act.
Concerning the entry and temporary stay of a natural person, Japan liberalized the restriction on mode 4 in the GATS as follows.
(a) A natural person who has been employed by a juridical person of a Member other than Japan for a period of not less than one year immediately preceding the date of his application for the entry and temporary stay in Japan, and who is being transferred, for a period of one year or 3years(may be extended) , to a branch office or a juridical person constituted or registered in Japan owned or controlled by the aforementioned juridical person of a Member other than Japan, provided that he will be engaged in certain activities.
(b)A natural person who has been employed by a juridical person of a Member other than Japan or has been a partner in it for a period not less than one year immediately preceding the date of his application for the entry and temporary stay in Japan, and who is being transferred to Japan, for a period of one year or 3years(may be extend) and who will return to the aforementioned juridical person of a Member other than Japan upon the expiration of the said period, provided that he will be engaged in certain activities of professional services which may be engaged only as a natural person and not as an employee.
(c)A natural person who stays in Japan for a period not exceeding 90 days without acquiring remuneration from within Japan and without engaging in making direct sales to the general public or in supplying services himself, for the purposes of participating in business contacts including negotiations for the sale of services and/or other similar activities including those to prepare for establishing commercial presence in Japan. |
By the revision of the Ministerial Ordinance to Provide for Criteria pursuant to Article 7, Paragraph 1, Item 2 of the Immigration –Control and Refugee-Recognition Act, the maximum period (5 years) of stay with regard to the status of residence “Intra-company Transferee” was abolished. |
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Foreign Exchange Control/ Movement of Capital
|
According to the revision of Foreign Exchange and foreign Trade Control Law, the sum of overseas deposits and trust contracts denominated in foreign currencies subject to approval was increased from over 100 million yen value to over 200 million yen value. |
Rebuilting to revise a part of Foreign Exchange and Foreign Trade Control Law was approved and established in the Ｄiet session of May ’97. And going through the necessary revisions on the relevant Ministry. Ordinances and such, a new Foreign Exchange and Foreign Trade Law came into force on the first of April ’98. There are 4 major points involved in the amended law.
First point is liberalization of cross-border capital transactions. In other words, license or prior notification requirements have been abolished in principle pertaining to the settlement and the capital transactions with foreign individuals and companies.
Second point is the complete liberalization of the foreign exchange business. This involves the abolition of the authorized foreign exchange bank system, the designated securities firm system and the money exchange business system. Regulations related to foreign exchange business are removed, and free entry and exit into and from foreign exchange business has been guaranteed.
Third point is development of ex-post reporting system. This is to prepare a ex-post reporting system in a comprehensive and reinforced way under which the balance of payments related statistics are to be compiled and also to have efficient and effective information in reporting system pertaining to the cross-border capital transactions for the sake of gaining appropriate and precise developments in the market trends.
The last point involves responses to the international requirements for the economic sanction and such. We had assured for ourselves a mechanism to enable us to flexibly and effectively conduct economic sanctions and others at the requirements of the international community. |
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Other Generic Requirements Applied to Trade in Services
|
Japan did not have generic restrictions applied to trade in services. |
Bills abolishing demand-supply adjustment regulations on passenger railway, chartered bus, domestic passenger ship and domestic air transport industries were implemented in 2000.
Bills abolishing demand-supply adjustment regulations on omnibus and taxi industries were enacted in 2002.
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[1] The following Collective Actions have been extracted from the annexed Action Programs of Working Groups in which substantial progress has already been made in services, in order to illustrate liberalization and facilitation related activities to be undertaken in these sectors. Activities in these sectors are also dealt with in Part Two.
Chapter 3 (a:1): Business Services: Legal |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken |
Employment of Bengoshi (a lawyer qualified by Japanese law) by Gaikokuho-Jimu-Bengoshi(a foreign lawyer qualified by Japanese law) is not permitted. |
Bill removing the restriction onjoint business Bengoshi and Gaikokuho-Jimu-Bengoshi and employment of Bengoshi by Gaikokuho-Jimu-Bengoshi were enacted in 2003. The relevant provisions of this law will be enforced within two years. |
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Licensing and Qualification Requirements of Service Providers
|
ⅰ）No further action required.ⅱ）Action taken previously-see 1999 IAP |
An applicant for approval of “Gaikokuho-Jimu-Bengoshi” is required to conform with the following standards:
ⅰ) He or she possesses the qualifications to become a lawyer in a foreign country, and, ⅱ) He or she has experience of having engaged in practice for a period of three years or more. |
No further action planned |
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Foreign Entry
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No further action taken |
Practice of Japanese Law is permitted for a lawyer qualified as "Bengoshi" under Japanese law. A Gaikokuho-Jimu-Bengoshi is allowed to practice the law of the country of primary qualification and the designated laws of specified foreign countries and so called third-country law which the lawyer is not qualified, provided that the lawyer obtains written legal advice from an attorney qualified in that jurisdiction. |
No further action planned |
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Discriminatory Treatment/ MFN
|
No further action taken |
There is no restriction inconsistent with Most Favored Nation treatment. |
No further action planned |
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Chapter 3 (a:2): Business Services: Accounting |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken |
Japan maintains a liberal regulatory regime with regard to accounting business service. |
No further action planned |
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Licensing and Qualification Requirements of Service Providers
|
No further action taken |
There is a qualification system for Certified Public Accountant (“CPAs”, “Koninkaikeishi”) under Certified Public Accountant Law. |
No further action planned |
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Foreign Entry
|
No further action taken |
Under CPA law, audit service must be supplied by CPAs or by Audit Corporation. There is no nationality, residence and specific educational career requirement to sit for CPA examination. Commercial presence is required for the 1st and the 2nd modes of supply by an Audit Cooperation. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
No further action taken |
The current legal framework already allows substantial foreign access to the accounting business services on a non-discriminatory basis. |
No further action planned |
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Chapter 3 (a:3): Business Services: Architectural |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken
|
Japan maintains a liberal regulatory regime with regard to architectural services. |
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
There is a qualification system for architects (Kenchikushi Law Article 4-3). |
No further action planned |
|
Foreign Entry
|
No further action taken
|
Some specific types of architectural services must be supplied by a service supplier qualified as " Kenchikushi" under Japanese law, or by a service supplier using "Kenchikushi". As for services supplied by "Kenchikushi" or by a service supplier using " Kenchikushi", commercial presence is required in market access listed for the 1st and 2nd modes of supply. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
No further action taken
|
There is no restriction inconsistent with Most-Favored-Nation treatment. |
No further action planned |
|
Chapter 3 (a:4): Business Services: Engineering |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken |
Japan maintains a liberal regulatory regime with regard to engineering services. |
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken |
There is no licensing or qualification obligation for providing engineering services in Japan. |
No further action planned |
|
Foreign Entry
|
No further action taken |
No restrictions exist except for the Horizontal Commitment in national treatment listed for the 3rd mode of supply. But no commitment in mode 4 except as indicated in the Horizontal Commitment in market access and national treatment listed for the 4th mode of supply. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
No further action taken |
There is no restriction inconsistent with Most-Favored-Nation treatment. |
No further action planned |
Chapter 3 (b:1) : Communication Services: Postal |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
The entry of private sector operators into postal services under license was allowed on April 1, 2003. |
None shall engage in correspondence-delivery business unless licensed by the Minister of Public Management, Home Affairs, Posts and Telecommunications. |
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
The entry of private sector operators into postal services under license was allowed on April 1, 2003. |
When authorization is applied for, the Minister of PHPT must determine whether the certain criteria are fulfilled. |
No further action planned |
|
Foreign Entry
|
The entry of private sector operators into postal services under license was allowed on April 1, 2003. |
There are no discriminatory measures affecting foreign participation in correspondence-delivery business. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
The entry of private sector operators into postal services under license was allowed on April 1, 2003. |
There is no restriction which is inconsistent with the Most-Favored-Nation treatment. |
No further action planned |
Chapter 3 (b:2) : Communication Services: Express Delivery |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
Please refer to parts of transport services.
|
Please refer to parts of transport services. |
Please refer to parts of transport services. |
|
Licensing and Qualification Requirements of Service Providers
|
Please refer to parts of transport services.
|
Please refer to parts of transport services. |
Please refer to parts of transport services. |
|
Foreign Entry
|
Please refer to parts of transport services.
|
Please refer to parts of transport services. |
Please refer to parts of transport services. |
|
Discriminatory Treatment/ MFN
|
Please refer to parts of transport services.
|
Please refer to parts of transport services. |
Please refer to parts of transport services. |
Chapter 3 (b:3) : Communication Services: Telecommunications |
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Section |
Improvement Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
The amendment to Telecommunications Business Law (TBL) was approved by the Diet, which include the following:
a. Abolition of the Type I (facility-based) and Type II (others) business categories and the permission system for new entrants;
b. Abolition of tariff regulations on non-dominant carriers, enabling individualized contract-based services; and
c. Abolition of the prior notification system concerning interconnection agreements for non-dominant carriers. |
|
No further action planned
JAPAN will continue to take measures for more pro-competitive regulatory frameworks as appropriate. |
|
Licensing and Qualification Requirements of Service Providers
|
The amendment toTelecommunications Business Law (TBL) was approved by the Diet, which include the following:
a. Abolition of the Type I (facility-based) and Type II (others) business categories and the permission system for new entrants;
b. Abolition of tariff regulations on non-dominant carriers, enabling individualized contract-based services; and
c. Abolition of the prior notification system concerning interconnection agreements for non-dominant carriers |
http://www.soumu.go.jp/eng/Res |
No further action planned
JAPAN will continue to take measures for more pro-competitive regulatory frameworks as appropriate. |
|
Foreign Entry
|
No further action taken |
The limitations on foreign capital participation in all telecommunications carriers (except for NTT), including the ones for radio licenses, are eliminated. Foreign capital participation, direct and/or indirect, in NTT (which owns all NTT East and NTT West stocks) must be less than one-third |
No further action planned |
|
Discriminatory Treatment/ MFN
|
No further action taken. |
Board members and auditors in NTT, NTT East and NTT West are required to have Japanese nationality. There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action planned |
Chapter 3 (b:4) : Communication Services: Audio-visual |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken
|
|
No further action taken |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
|
No further action taken |
|
Foreign Entry
|
No further action taken
|
No commitments in mode 4 except as indicated in Horizontal Commitment in market access and national treatment listed for the 4th mode of supply. No restrictions for motion picture and video tape production and distribution services, motion picture projection services and sound recording services. |
No further action taken |
|
Discriminatory Treatment/ MFN
|
No further action taken
|
There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action taken |
Chapter 3 (c) : Construction and Related Engineering Services |
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|
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken
|
Japan maintains a liberal regulatory regime with regard to construction and related engineering services. |
No further action taken |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
Construction license is required in accordance with the Construction Business Act. |
No further action taken |
|
Foreign Entry
|
No further action taken
|
No restrictions exist except for the horizontal commitment in national treatment listed for the 3rd mode of supply. But no commitment in mode 4 except as indicated in the Ｈorizontal Ｃommitment in market access and national treatment listed for the 4th mode of supply. |
No further action taken |
|
Discriminatory Treatment/ MFN
|
No further action taken
|
There is no restriction inconsistent with Most-Favored-Nation treatment. |
No further action taken |
Chapter 3 (d) : Distribution Services |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
|
|
|
|
Licensing and Qualification Requirements of Service Providers
|
|
|
|
|
Foreign Entry
|
No further action taken |
No commitments in mode4 except as indicated in Horizontal Commitment in market access and national treatment listed for the 4th mode of supply. |
No further action taken |
|
Discriminatory Treatment/ MFN
|
No further action taken |
There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action taken |
Chapter 3 (e) : Education Services |
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|
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No action has been taken
|
In order to provide the formal education, an education service provider is required to establish a school juridical person authorized by the Minister of Education, Culture, Sports, Science and Technologyor governors of prefectures. In order to establish a school, a school juridical person needs the authorization by the Minister of Education, Culture, Sports, Science, and Technology or governors of prefectures.(e-mail; kikan@mext.go.jp / fax; +81-3581-9149)
* the formal education is supplied by the schools under Article1 School Education Law. |
No further action required. |
|
Licensing and Qualification Requirements of Service Providers
|
No action has been taken
|
In order to obtain the authorization,there are various requirements such as qualifications and the number of faculty, curriculum, facilities and equipment, and funds needed for establishment. (e-mail; kikan@mext.go.jp / fax; +81-3581-9149 |
No further action required. |
|
Foreign Entry
|
No action has been taken
|
In order to provide the formal education, an education service provider is required to establish a school juridical person authorized by the Ministry of Education, Culture, Sports, Science and Technology or governors of prefectures. In order to establish a school, a school juridical person needs the authorization by the Minister of Education, Culture, Sports, Science and Technology or governors of prefectures.
To provide the formal education in Japan there are no restrictions except for the Horizontal Commitment in national treatment listed for the 3rd mode of supply. There is no commitment in mode 4.(e-mail: kikan@mext.go.jp / fax; +81-3581-9149)
Concerning foreign language tuition services for adults excluding the schools under School Education Law, under mode 3, there are no limitations of market access and no limitations of national treatment except as indicated in Horizontal Commitments. Under mode 4, there is no commitment of the market access and national treatment except as indicated in Horizontal Commitment. |
No further action required. |
|
Discriminatory Treatment/ MFN
|
No action has been taken
|
There is no restriction inconsistent with most –favored –nation treatment.(e-mail: kikan@mext.go.jp / fax; +81-3581-9149) |
No further action required. |
Chapter 3 (f) : Environment Services |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No improvements implemented since the last IAP.
|
Environment Service operators have to get authorization from central or local government. The technical standards and absence of a dishonest act are mainly required.
|
No further improvements planned. |
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Licensing and Qualification Requirements of Service Providers
|
No improvements implemented since the last IAP.
|
Licensing and qualification requirements are regulated by the relevant laws at the central government level. |
No further improvements planned. |
|
Foreign Entry
|
No further action required. |
No restrictions exist except for the Horizontal Commitment in national treatment listed for the 3rd mode of supply. But no commitment in mode 4 except as indicated in the Horizontal Commitment in market access and national treatment listed for the 4th mode of supply |
No further improvements planned. |
|
Discriminatory Treatment/ MFN
|
No further action required. |
There is no restriction inconsistent with Most-Favored-Nation treatment. |
No further action required. |
Chapter 3 (g) : Financial Services |
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|
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken
|
Banking: None shall engage in banking unless licensed by the Prime Minister.(Banking Law, Article 4)
Securities: FSA shall, in case where an application for the registration has been filed, make an entry of necessary matters in the securities company register. (Securities and Exchange Law, Article28-3)
Insurance: None shall engage in insurance business unless licensed by the Prime Minister. (Insurance Business Law, Article 3)
|
No further action planned |
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Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
Banking: When authorization is applied for, the Prime Minister must determine whether the certain criteria are fulfilled. (Banking Law, Article 4 )
Securities: FSA shall reject registration in case where an applicant for registration falls within the purview of any item set forth in Article 28-4, Securities and Exchange Law, or an application for registration or a document attached there to contains any false statement. (Securities and Exchange Law, Article28-4)
Insurance: When authorization is applied for, the Prime Minister must determine whether the certain criteria are fulfilled. (Insurance Business Law, Article 5)
Insurance companies are prohibited to operate both life and non-life insurance businesses. (Insurance Business Law, Article 3,185,219)
|
No further action planned
|
|
Foreign Entry
|
No further action taken
|
Banking: According to the Banking Law, local subsidiaries and branches of foreign banks starting business in Japan must be licensed by the Prime Minister. (Banking Law Article 4, 47) Local subsidiaries must be corporation with its capital of two billion yen. (Banking Law, Article4)
If an applicant whose shareholders totally or partly consistent of a person or person engaging in banking in a foreign country or countries under foreign legislation, the Prime Minister shall examine whether banks in the foreign country wherein the main office of business of the foreign banks exists are entitled to a status equivalent in substance to the one given under this Law. (Banking Law, Artcicle4, Paragraph 3)
By the amended banking law enforced in April 2002, in order for a foreign bank to operate banking business in Japan, it is necessary to acquire a license only when its first branch (as its headquarters in Japan) and another license is not required in establishing other branches in Japan, although approvals are needed. Article47-2, Implemented on 1 April 2002.
Securities: Under the Law on Foreign Securities Firms, a foreign broker-dealer, who is engaging securities business in foreign jurisdiction under the legislation of that jurisdiction, can not in principle engage in securities business unless it registers a branch office(as its headquarters) in Japan. (Article 3)
A foreign broker-dealer shall, in case where it intends to engage in certain business, e.g. trade in over-the-counter derivatives contract on a security, have authorization granted from FSA. (Securities and Exchange Law, Article 29)
Insurance: According to the Insurance Business Law, local subsidiaries and branches etc. of foreign insurance companies starting business in Japan must be licensed by the Prime Minister .Insurance (Business Law, Article 185)
Local subsidiaries must be corporation or mutual company with its capital of one billion yen. In the case of a branch of a foreign insurance company etc., it must deposit two hundred million yen with the nearest deposit office. (Insurance Business Law, Article190) |
No further action planned
A foreign broker-dealer, who is engaging securities business in foreign jurisdiction under the legislation of that jurisdiction, can, by acquiring permission by theFSA, sell and purchase securities in the securities and exchange market without registering a branch office (as its headquarters) in Japan. (Article 13-2 of the Law on Foreign Securities Firms) This provision will be enforced from April 1, 2004.
|
|
Discriminatory Treatment/ MFN
|
No further action taken
|
Banking: The deposit insurance system does not cover deposits taken by foreign banks, because of jurisdiction control. Japan currently does not have any plans to relax the restriction.
Securities: There is no restriction inconsistent with Most –Favored –Nation treatment.
Insurance: There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action planned
|
Chapter 3 (h) : Health Related and Social Services |
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Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken
|
Hospital and clinic services
Operating hospitals and clinics for making profits is prohibited by Medical Service Law but the establishment of hospitals and clinics is not restricted as long as they are nonprofit and comply with the standards and the procedures specified in the Medical Service Law.
Services for elderly people
The Long-term Care Insurance Law provides that corporations including joint-stock companies are able to participate as service provider of in-home care service for elderly people, if it meets the requirements for staffs and equipments and acquires a prefecture governor's approval.On the other hand, joint-stock company is not allowed to participate inthe facility services of the Long-term Care Insurance Law, and it is necessary to get approval for establishing a social welfare foundation established pursuant to the Social Welfare Service Law or medical corporations established under the Medical Service Law. For instance, the establishment of "special nursing home for the elderly" is restricted to local government and social welfare foundations. And with regard to "health care facilities for the elderly requiring long-term care" and "medical facilities for the elderly requiring long-term care", the founder is restricted to local government and medical corporations, etc.
|
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
Hospital and clinic services
Operating hospitals and clinics for making profits is prohibited by Medical Service Law but the establishment of hospitals and clinics is not restricted as long as they are nonprofit and comply with the standards and the procedures specified in the Medical Service Law.
Services for elderly people
The Long-term Care Insurance Law provides that corporations including joint-stock companies are able to participate as service provider of in-home care service for elderly people, if it meets the requirements for staffs and equipments and acquires a prefecture governor's approval.On the other hand, joint-stock company is not allowed to participate in the facility services of the Long-term Care Insurance Law, and it is necessary to get approval for establishing a social welfare foundation established pursuant to the Social Welfare Service Law or medical corporations established under the Medical Service Law. For instance, the establishment of "special nursing home for the elderly" is restricted to local government and social welfare foundations. And with regard to "health care facilities for the elderly requiring long-term care" and "medical facilities for the elderly requiring long-term care", the founder is restricted to local government and medical corporations, etc.
|
No further action planned |
|
Foreign Entry
|
|
|
|
|
Discriminatory Treatment/ MFN
|
No further action taken
|
There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action required |
Chapter 3 (i) : Tourism and Travel Related Services |
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Section |
Improvements Implemented since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken
|
No commitments exist except for the horizontal measures in market access and national treatment listed for the 4th mode of supply.No restrictions existexcept for the horizontal measures in national treatment listed for the 3rd mode of supply.
+81-5253-1561( FAX Rep.) , e-mail:murakawa-s2xp@mlit.go.jp.
|
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
No commitments exist except for the horizontal measures in market access and national treatment listed for the 4th mode of supply.No restrictions exist except for the horizontal measures in national treatment listed for the 3rd mode of supply. |
No further action planned |
|
Foreign Entry
|
No further action taken
|
No commitments exist except for the horizontal measures in market access and national treatment listed for the 4th mode of supply.No restrictions exist except for the horizontal measures in national treatment listed for the 3rd mode of supply. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
No further action taken
|
There is no restriction inconsistent with most –favored –nation treatment. |
No further action planned |
Chapter 3 (j) : Recreational Cultural and Sporting Services |
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|
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action required
|
There is no legal provisions which restrict providing the recreational, cultural and sporting services
|
No further action required |
|
Licensing and Qualification Requirements of Service Providers
|
No further action required
|
There is no license existed for services providers in the recreational, cultural and sporting services |
No further action required |
|
Foreign Entry
|
No further action required
|
Concerning the restriction of market access under the 3rd Mode of supply of the Entertainment Services, News Agency Services, Libraries and Archives Services and Sporting and other Recreational Services, no restrictions exist and no limitations of national treatment under mode 3 exist except as indicated in Horizontal Commitment.
Concerning the restriction of market access and national treatment under the 4th Mode of supply of the Entertainment Services, News Agency Services, Libraries and Archives Services and Sporting and other Recreational Services, unbound except as indicated in Horizontal Commitments of GATS |
No further action required |
|
Discriminatory Treatment/ MFN
|
No further action required
|
There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action required |
Chapter 3 (k:1) : Transport Services: Maritime |
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|
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken |
No restrictions exist in terms of demand-supply adjustment .+81-5253-1561( FAX Rep.), e-mail:murakawa-s2xp@mlit.go.jp |
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken
|
For entry into international maritime freight and passenger transport services, application for license is not required.
|
No further action planned |
|
Foreign Entry
|
No further action taken
|
There are no discriminatory measures affecting foreign participation in international maritime transport services. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
|
|
|
Chapter 3 (k:2) : Transport Services: Air |
|||
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
No further action taken.
|
No restrictions exist in terms of demand-supply adjustment . +81-5253-1561( FAX Rep.), e-mail:murakawa-s2xp@mlit.go.jp
|
No further action planned. |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken.
|
No restrictions exist in terms of national treatment and market access in the following services related to air transport: Aircraft repair and maintenance services (with a reservation that the number of licenses conferred to service suppliers may be limited)，Selling and marketing of air transport services and Computer reservation system (CRS) services. |
No further action planned. |
|
Foreign Entry
|
No further action taken.
|
No restrictions exist in terms of national treatment and market access in the following services related to air transport: Aircraft repair and maintenance services (with a reservation that the number of licenses conferred to service suppliers may be limited)，Selling and marketing of air transport services and Computer reservation system (CRS) services |
No further action planned. |
|
Discriminatory Treatment/ MFN
|
No further action taken.
|
No restrictions exist in terms of national treatment and market access in the following services related to air transport: Aircraft repair and maintenance services (with a reservation that the number of licenses conferred to service suppliers may be limited)，Selling and marketing of air transport services and Computer reservation system (CRS) services |
No further action planned. |
Chapter 3 (k:3) : Transport Services: Rail |
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|
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
Bills abolishing demand-supply adjustment regulations on cargo railway industry were enacted in June 2002
|
No restrictions exist in terms of demand-supply adjustment on passenger rail industry +81-5253-1561( FAX Rep.), e-mail:murakawa-s2xp@mlit.go.jp |
Bills abolishing demand-supply adjustment regulations on cargo railway industry will be implemented in April 2003. |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken |
No restrictions exist in terms of national treatment and market access in Rail transport services except where exceptions are registered by Japan in its liberalization commitments under GATS: Maintenance and repair services of rail transport equipment and Rental services of railway transport equipment with operators. |
No further action planned |
|
Foreign Entry
|
No further action taken |
No restrictions exist in terms of national treatment and market access in Rail transport services except where exceptions are registered by Japan in its liberalization commitments under GATS: Maintenance and repair services of rail transport equipment and Rental services of railway transport equipment with operators. |
No further action planned |
|
Discriminatory Treatment/ MFN
|
No further action taken |
There is no restriction inconsistent with Most –Favored –Nation treatment. |
No further action planned |
Chapter 3 (k:4) : Transport Services: Road |
|||
Section |
Improvements Implemented Since Last IAP |
Current Entry Requirements |
Further Improvements Planned |
|
Operational Requirements
|
Bills abolishing demand-supply adjustment regulations on omnibus and taxi industry were implemented in February 2002.
|
No restrictions exist in terms of demand-supply adjustment +81-5253-1561( FAX Rep.), e-mail:murakawa-s2xp@mlit.go.jp |
No further action planned |
|
Licensing and Qualification Requirements of Service Providers
|
No further action taken |
No restrictions exist in terms of national treatment and market access in Road transport services except where exceptions are registered by Japan in its liberalization commitments under GATS: Freight transport services and Maintenance and repair services of road transport equipment. |
No further action planned |
|
Foreign Entry
|
No further action taken | ||