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.

Guidelines

Each APEC economy will:

a.                   take into account, in the process of achieving the above objective, intra-APEC trade trends, economic interests and 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;

c.                    consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements; and

d.                    implement and maintain standards consistent with the APEC Leaders’ Transparency Standards.

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

Japan’s Approach to Tariffs in 2007

Japan supports the successful conclusion 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
rket/index.html

Case Study of a Tariff Liberalisation Initiative

Bound Tariffs

Tariff Reductions in accordance with the Uruguay Round Agreements.

In 2007, import-weighted average bound rates are 2.8 percent for all goods, which is very low rate by international comparison, 15.3 percent for agricultural products, 4.5 percent for fish and fish products, 2.1 percent for wood, pulp, paper, and furniture.

Japan will consider progressively reducing tariffs.

Applied Tariffs

In April 2007 Japan voluntarily eliminate or reduced tariffs on 2 items (HS 9-digit)    from the industrial sector :  Ethyl alcohol for manufacturing ethyl acetate or ethylamine ,Sodium dichromate.

In 2007, import-weighted average applied rates are 1.8 percent for all goods, which is a very low rate by international comparison, 10.1 percent for the agricultural products, 4.6 percent for fish and fish products and 1.7 percent for wood, pulp, paper, and furniture.

Tariffs on industrial alcohol and petroleum products will be progressively reduced   from 2006 to 2011.

Tariff Quotas

No further action taken.

Tariff Quotas are applied to 29 groups, 25 groups from agricultural sector, and 4 groups from industrial products.

-

Tariff Preferences

In FY 2007, Japan implemented enhanced duty-free and quota-free (DFQF) market access to the LDCs on 1 April 2007 by expanding the coverage of products under the GSP for LDCs.

In January 2007, Bulgaria and Romania were excluded from beneficiaries of Japan’s  GSP, as a result of their accession to the EU, and Montenegro was designated as beneficiary.

In April 2007, French Polynesia graduated from that of the GSP.

Japan’s Generalized System of Preference (GSP)  is designed to support the economic development of developing economies.  Japan grants preferential treatment to 141 developing countries and 14 territories andDFQF treatment to all LDCs (There are 50 countries designated as LDC amongst the 155 beneficiaries of the GSP as of April 2007).

Under the GSP,  tariff cuts on agricultural and fisheries products  vary, but include duty-free treatment, and GSP tariff rates on industrial  products are in principle free except for some items.

The number of agricultural and fishery products (HS chapters 1-24) under the GSP amounts to 1523 items, 1183 items are granted DFQF treatment.

 The number of industrial products (HS chapters 25-97) under the GSP amounts to 4243 items, 1,028 items are granted DFQF treatment.

In 2005, Japan expressed its commitment to provide duty-free and quota-free market access for essentially all products originating from all LDCs. Based on the commitment, Japan has implemented duty-free and quota-free market access for essentially all products from all LDCs since FY 2007.

For further information, http://www.mofa.go.jp/policy/e
conomy/gsp/index.html

-

Transparency of Tariff

Regime, including

Implementation of

APEC Leaders’

Transparency

Standards on Market

Access*

No further action taken.

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
nzei/kanzei.htm#5

The tariff rates are determined through Diet deliberations; and, as appropriate, the tariff rates would be discussed in the Council on Customs, Tariff, Foreign Exchange and other Transactions in advance.

The customs counselors’ officesprovide proper knowledge, advice and any other suggestions on the customs procedures including tariff schedules and other tariff related measures to the consulters. Inquiries could also be made by telephone and e-mail.

None

Bound Tariffs

As a result of the Uruguay Round, average bound rates were 7.4 percent for all goods, 30.3 percent for agricultural products and  3.6 percent for industrial products, whereas average bound rates were 3.7 percent for wood, pulp, paper, and furniture and 5.5 percent for fish and fish products, one of the lowest rates by international comparison.

In 2007,  import-weighted average bound rates are 2.8 percent for all goods, which is a very low rate by international comparison, 15.3 percent for the agricultural procucts, 4.5  percent for fish and fish products, and 2.1 percent for wood, pulp, paper, and furniture. Japan also agreed to the reciprocal elimination of tariffs on such products as pharmaceuticals, construction equipment, medical equipment, steel, furniture, agricultural machinery, paper, and pulp. Japan voluntarily offered to eliminate tariffs on electronics.

Japan has steadily implemented the Information Technology Agreement (ITA).

Applied Tariffs

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 and , 2.5 percent for industrial products, whereas average applied rates were 1.7 percent for wood, pulp, paper and furniture, and  5.1 percent for fish and fish products.

In 2007,  import-weighted average applied rates are 1.8 percent for all goods, which is a very low rate by international comparison, 10.1percent for the agricultural procucts, 4.6 percent for fish and fish products, and 1.7 percent for wood, pulp, paper, and furniture.

Japan has voluntarily reduced/eliminated tariffs on 85 items from the industrial sector and 45 items from the agricultural sector (total of 130 items, based on HS9-digit classification) since 1996.

In April 1997, Japan implemented a voluntary tariff elimination on 4 items (HS9-digit) and 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) and 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 a tariff on 1 item (HS 9-digit) from the industrial sector and reduced a tariff on 1 item (HS 9-digit) from the agricultural sector.

In April 2002, Japan also voluntarily reduced tariffs on 4 items(HS 9-digit) and eliminated a tariff on 1 item(HS 9-digit)from the industrial sector and eliminated tariff on 1 item(HS 9-digit) from the agricultural sector. 

In April 2004, Japan implemented a voluntary tariff reduction on 4 items (HS 9-digit) from the industrial sector.

In April 2005, Japan implemented a voluntary tariff reduction on 1 item (HS 9-digit) from the industrial sector.

In April 2006, Japan implemented a voluntarily tariff elimination or reduction on 32 items (HS 9-digit) from the industrial sector.

In April 2007, Japan implemented a voluntarily tariff elimination on 2 items (HS9-digit) from the industrial sector.

Tariff Quotas

Tariff quotas were applied to 31groups : 26 groups fromthe agricultural sector and 5 groups fromthe industrial sector.

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 distilled alcohol beverages were abolished.

Tariff Preferences

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.

In January 1996, Japan expanded, as one of its Osaka Initial Actions, the range of items for which importers are exempted from submitting a certificate of origin (Form A)that are generally required when  applying preferential tariffs to the importing goods from developing coutries under Japan’s GSP .

The application of preferential treatment to advanced beneficiaries is reviewed periodically.

1) Since 1998, partial graduation has started to mitigate the impact of graduating economies.

2) In 2000, advanced beneficiaries of 9 countries and 10 territories were excluded from the GSP.

3) In 2003, Slovenia was graduated from the GSP.

4) In 2004, 8 countries were excluded from the GSP, as a result of their accession to the EU.

5) In 2006, Bahrain graduated from the GSP.

6) In 2007, Bulgaria and Romania were excluded from the GSP, as a result of their accession to the EU, and French Polynesia graduated from the GSP.

In FY 2001, 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 duty-free and quota-free access for the exports of LDCs.

In FY 2003, the number of LDC’s agricultural and fishery products under duty-free and quota-free preferential 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, increased by 119 items.

In FY 2006, 3 LDCs ,i.e. Comoros, Djibouti, and Timor-Leste, were newly designated as beneficiaries. Consequently, Japan has granted special treatment for all LDCs under the GSP.

Montenegro was newly designated as beneficiary.

In FY 2007, Japan implemented enhanced  duty-free and quota-free (DFQF) market access to the LDCs by expanding the coverage of products under the GSP for LDCs, whose number increased by 1,101 items.

Transparency of Tariff Regime

including Implementation of

APEC Leaders’ Transparency

Standards on Market Access, *

To ensure transparency, Japan immediately announced any changes in tariff rates and the tariff system in the “Kanpo” (government gazette), and  annually published “Customs Tariff Schedules of Japan”. 

The tariff rates are determined through Diet deliberations; and, as appropriate, the tariff rates would be discussed in the Customs Tariff Council in advance.

The customs counselors’ officesprovide to the concerned parties proper knowledge, advice and any other suggestions on the customs procedures including tariff schedules and other tariff related measures.  Inquiries could also be made by telephone.

Japan announces  changes in tariff rates and the tariff system not only in the “Kanpo” but also on the website. In addition, the Japanese government started to  release annually the outline of the Law to Amend the Customs Tariff Law on the website.

APEC INDIVIDUAL ACTION PLAN:  TARIFF SUMMARY REPORT FOR 2007

(PLEASE COMPLETE BOXES)

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

ITEM

Bound tariff lines as a percentage of all lines

98.8%

99.9%

88.7%

34.7%

92.8%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

99.4%

100.0%

Duty-free tariff lines as a percentage of all lines

40.9%

24.2%

8.9%

32.7%

67.0%

2.5%

34.6%

73.2%

31.8%

99.3%

100.0%

96.0%

75.2%

68.3%

Preferential tariff lines as a percentage of all lines

Generalized System of Preference (GSP)

39.3%

18.1%

14.9%

10.2%

46.7%

56.2%

24.1%

65.7%

76.2%

0.7%

0.0%

4.6%

23.4%

33.2%

Ratio of tariff lines with quotas to all lines

1.8%

5.9%

0.0%

0.0%

0.0%

0.0%

13.7%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Simple average bound tariff rate

7.3%

21.6%

4.9%

3.3%

1.9%

6.6%

16.2%

0.9%

2.5%

0.1%

0.0%

0.2%

0.9%

1.5%

Simple average applied tariff rate

6.9%

19.7%

5.9%

1.8%

1.7%

6.6%

16.2%

0.8%

2.5%

0.1%

0.0%

0.2%

0.9%

1.4%

Simple average applied preferential tariff rate - indicate for

each preferential arrangement

Generalized System of Preference (GSP)

1.6%

3.7%

5.8%

0.0%

0.9%

3.2%

3.6%

0.1%

0.1%

0.0%

-

0.0%

0.2%

0.2%

Average applied tariff rate for all lines subject to duty

11.7%

26.3%

6.5%

2.8%

5.3%

6.8%

24.8%

3.3%

3.6%

8.4%

-

4.3%

3.6%

4.5%

Import-weighted average applied tariff rate - specify FOB

or CIF

1.8%

10.1%

4.6%

0.1%

1.7%

8.5%

9.6%

0.4%

1.9%

0.0%

0.0%

0.1%

0.2%

0.5%

Import-weighted average bound tariff rate - specify FOB

or CIF

2.8%

15.3%

4.5%

3.6%

2.1%

8.5%

9.6%

0.5%

2.0%

0.0%

0.0%

0.1%

0.2%

0.5%

                                Notes

APEC INDIVIDUAL ACTION PLAN:  TARIFF DISPERSION TABLE FOR 2007

(PLEASE COMPLETE BOXES)

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

NUMBER OF TARIFFS AT OR BETWEEN

0%

3,693

439

30

16

317

49

139

653

372

145

576

332

251

374

0%<X<=5%

1,905

187

163

14

70

306

24

186

760

0

0

14

66

115

5%<X<=10%

1,810

248

108

1

86

1,179

62

17

37

1

0

0

15

56

10%<X<=15%

407

171

27

0

0

176

33

0

0

0

0

0

0

0

15%<X<=20%

143

103

1

0

0

0

38

0

0

0

0

0

0

1

>20%

448

361

4

0

0

0

81

0

0

0

0

0

0

0

Specific

638

302

3

18

0

248

25

36

2

0

0

0

2

2

TOTAL

9,042

1,811

336

49

473

1,958

402

892

1,171

146

576

346

334

548

                                 Note

Chapter 2 : Non-Tariff Measures[1]

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 with WTO commitments; and

c.             ensuring the transparency of APEC economies’ respective non-tariff measures.

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;

d.                   ensure that measures to promote the new economy and strengthening the functioning of markets are consistent with the objectives above; and

e.                   implement and maintain standards consistent with the APEC Leaders’ Transparency Standards.

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.

Japan’s Approach to Non-Tariff Measures in 2007

The import/export prohibitions and restrictions that Japan implements are not only in accordance with relevant provisions of the WTO agreements but also necessary to fulfil obligations under other international agreements, such as the Montreal Protocol.

Quantitative Import Restrictions/

Prohibitions

No further action taken

All the import/export prohibitions and restrictions that Japan implements are in accordance with the special exception provisions and other relevant provisions of the WTO agreements.Some measures are implemented to fulfill obligations under other international agreements, such as the Montreal Protocol.

No further action planned

Quantitative Export Restrictions/

Prohibitions

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; and

2) Export prohibitions, quantitative restrictions and licensing measures based on international agreements (e.g. the Montreal Protocol, the Basel Convention and the CITES)

No further action planned

Import Levies

No further action taken

None

No further action planned

Export Levies

No further action taken

None

No further action planned

Discretionary Import Licensing

No further action taken

None

No further action planned

Automatic Import Licensing

No further action taken

None

No further action planned

Discretionary Export Licensing

No further action taken

None

No further action planned

Voluntary Export Restraints

No further action taken

All abolished

No further action planned

Export Subsidies

No further action taken

None

No further action planned

Minimum Import Prices

No further action taken

None

No further action planned

Implementation of APEC Leaders’ Transparency Standards on Market Access*

None

None

None

Other Non-Tariff

Measures Maintained

No further action taken

None

No further action planned

General Policy

Position

All the import/export prohibitions and restrictions that Japan implemented were in accordance with the special exception provisions and other relevant provisions of the WTO agreements.  Some measures are implemented to fulfil obligations under other international agreements, such as the Montreal Protocol.

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

Quantitative Import Restrictions/

Prohibitions

As a result of the Uruguay Round negotiations, Japan abolished quantitative import 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 distilling industrial alcohol with free of tariff.

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; and

(2) Export prohibitions, quantitative restrictions and licensing measures based on international agreements(e.g. the Montreal Protocol, the Basel Convention and the CITES).

No further action taken

Import Levies

None

No further action required

Export Levies

None

No further action required

Discretionary Import Licensing

None

No further action required

Automatic Import Licensing

None

No further action required

Discretionary Export Licensing

None

No further action required

Voluntary Export Restraints

All abolished

Japan abolished the monitoring of automobile exports to the European Communities at the end of 1999.

Export Subsidies

None

No further action required

Minimum Import Prices

None

No further action required

Implementation of APEC Leaders’ Transparency Standards on

Market Access*

None

None

Other Non-Tariff

Measures Maintained

None

No further action required

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.

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;

e.                   support APEC capacity building efforts to supply services by, inter-alia, strengthening infrastructure, promoting the use of advanced technologies and developing human resources; and

f.                     implement and maintain standards  consistent with the APEC Leaders’ Transparency Standards.

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
In accordance with the Cancun Declaration, APEC economies will:

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 
APEC economies will:

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

 Japan’s Approach to Trade in Services in2007

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 of the 155 sectors stipulated in w/120 during the Uruguay Round.

No further action planned

Temporary Entry and Stay of Service Providers and Intra-Corporate Transferees

Expansion of preferential measures given to the researchers and data processing specialists

Japanese government decided that the following preferential measures given in accordance with the Law on the Special Zones for Structural Reform should be expanded to nationwide within FY 2005.

These measures were enforced on November 24, 2006.

(i)Foreign researchers who intend to engage in both research activities and business activities using research outcome in research facilities in the special zones are granted the appropriate status of residence and they can engage in both activities without changing their status of residence or without obtaining permission for engaging in activities other than those relating to the status of residence previously granted.

 The duration of stay of these researchers are extended from three years to five years without renewing their period of stay.

(ii) The foreign researchers described in (i) and those who only engage in research activities at universities or other research facilities in the special zones are granted the maximum period of stay five years without renewing their period of stay.

(iii)The maximum period of stay applicable to data processing specialists who are expected to be employed over three years in the

data processing industry has been extended from three years to five years.

Foreign people who fall in one of the categories such as “Intra-corporate Transferee”, “Business Visitors”, “Independent Professionals” and “Contractual Service Suppliers” can enter and reside in Japan in accordance with the Immigration Control and Refugee Recognition Act, the details of which are as follows.

(a)Intra-corporate transferees

A natural person who has been employed by a juridical person 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 or three years, which may be extended,  to a branch office, representative office or a juridical person constituted or registered in Japan owned or controlled by  or affiliated with the aforementioned juridical person of a Member other than Japan, under the following status:

i) Executives;

ii) Senior managers;

iii) Specialist.

(b) Independent professionals

A natural person who is a qualified person listed below, not necessarily obtaining a contract to provide services, for a period of one or three years, which may be extended, provided that the natural person will be engaged in, for example, one of the following activities of professional services during its temporary stay in Japan:

i) Legal services supplied by a lawyer;

ii) Legal advisory services;

iii) Legal services supplied by a judicial scrivener;

iv) Legal services supplied by an administrative scrivener;

v) Legal services supplied by a certified social insurance and labour consultant;

vi) Legal services supplied by a patent attorney;

vii) Legal services supplied by a maritime procedure agent

viii) Accounting, auditing and bookkeeping services supplied by an accountant;

ix) Taxation services supplied by a tax accountant;

X) Legal services supplied by a land and house surveyor.

(c) Business Visitors

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.

The period of stay may be extended.

(d) Contractual Service Suppliers (natural person)

 A natural person who is engaged in one of the following activities during its temporary stay in Japan for a period of one or three years, which may be extended, on the basis of a personal contract with a public or private organization in the territory of Japan:

i) Activities which require technology and/or knowledge at an advanced level pertinent to physical sciences, engineering or other natural sciences;

ii) Activities which require knowledge at an advanced level pertinent to jurisprudence, economics, business management, accounting or other human sciences;

iii) Activities which require specific ways of thought or sensitivity based on experience with foreign culture.

No further action planned

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 by the DietinMay ’97. The necessary revisions to  the relevant ordinances were made. A new Foreign Exchange and Foreign Trade Law and relevant 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 an 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 have a mechanism to enable us to flexibly and effectively conduct economic sanctions and others at the requirements of the international community.

No further action planned.

Implement APEC Leaders’

Transparency Standards on

Services*

-

-

-

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.

Section

Position at Base Year (1996)

Cumulative Improvements Made to Date

General Policy Position

Japan is one of the few countries that made commitments during the Uruguay Round to liberalize trade in services in more than 100 of the 155 sectors stipulated in w/120.

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  of the 155 sectors stipulated in w/120 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-corporate Transferee”  under the Immigration Control and Refugee Recognition Act, the details of which are 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 3 years(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 3 years(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-corporate Transferee” was abolished.

Formulation of the Basic Plan for Immigration Control(3^rd Edition)

In respond to various changes related to the immigration control administration, the Ministry of Justice formulated the Basic Plan for Immigration Control (3^rd Edition).

In the Basic Plan, it is stated that Japan intends to accommodate foreign workers in professional or technical fields who do not fall in the current statuses of residence or do not meet the criteria for landing permission by developing new statuses of residence or criteria for landing permission in line with socioeconomic change including population-declining in the Japan’s society, while also giving consideration to factors such as the effects on Japan’s industry and public welfare.

It is also stated that the maximum period of stay for highly-skilled foreign nationals would be extended provided that a system should be developed to ensure such extension does not cause a problem of illegal employment, and that consideration would also be given to extending the maximum period of stay for foreign nationals with the statuses of residence in professional or technical fields.

Expansion of the acceptance of IT engineersWith a view to responding to the need for IT engineers in Japan, the Ministerial Ordinance to Provide for Criteria pursuant to the status of residence of “Engineer” was partially amended in 2001. With this amendment, IT engineers who have passed foreign examinations or have obtained foreign qualifications on information processing skills, which are certified by Japan and designated by the Minister of Justice in the Official Gazette, may enter Japan irrespective of whether or not they satisfy the criteria for the status of residence “Engineer”, i.e. ‘having graduated from or completed a course at a college or acquired equivalent education, or having at least 10 years work experience.

The list of examinations and qualifications which are certified in Japan and designated in the Official Gazette will be expanded in the future.

 Expansion of preferential measures given to the researchers and data processing specialists

Japanese government decided that the following preferential measures given in accordance with the Law on the Special Zones for Structural Reform shall be expanded to nationwide within FY 2005. These measures were enforced on November 24, 2006.

(i)Foreign researchers who intend to engage in both research activities and business activities using research outcome in research facilities in the special zones are granted the appropriate status of residence and they can engage in both activities without changing their status of residence or without obtaining permission for engaging in activities other than those relating to the status of residence previously granted. The duration of stay of these researchers are extended from three years to five years without renewing their period of stay.

(ii)The foreign researchers described in (i) and those who only engage in research activities at universities or other research facilities in the special zones are granted the maximum period of stay five years without renewing their period of stay.

(iii)The maximum period of stay applicable to data processing specialists who are expected to be employed over three years in the data processing industry has been extended from three years to five years.

Expanding and simplifying the procedure for an application submitted by a company of good performance

In March 2004, measures for facilitation has been taken for expediting and simplifying the procedure with regard to the application for the certificate of eligibility for a status of residence submitted by foreign nationals underemployment contracts with companies which are regarded as being in "good performance" and reliable not to cause the illegal problem such as overstay. Those facilitating measures are including an issue of the certificate of eligibility for the status of residence within two weeks approximately from the date of receipt of applications and elimination of a requirement to submit additional proof on their companies, if they have already submitted such proof in the past one year and no special change has been made.

 Facilitation for the APEC business travel card(ABTC) holders

In order to achieve smooth examination for landing of ABTC holders, special lanes for ABTC holders havebeen established in two more Airports in Feb. 2005 in Japan. The authority is making efforts to establish ABTC special lane in other airports as much as possible.

Revision of the status of residence of  “Medical Services”

On 30 March 2006, the Ministerial Ordinance to Provide for Criteria pursuant to the status of residence of “Medical Services”, which relaxes the restrictions on foreign doctors, nurses etc. having Japanese medical licenses to engage in medical services in Japan, was revised and came into force on the same day.

The outline of the revisions of the Ministerial Ordinance providing criteria for the status of residence and landing permit are as follows.

(i)Revision of the criteria for the status ofresidence concerning a person who is to practice as a medical doctor abolition of criteria requiring graduation from a college in Japan after completing a course in medical science, restricting practice of medical activities only at a hospital or a medical office in an area where it is difficult to secure a medical doctor, and limiting the practice as a trainee including its period which is not exceeding 6 years from the date of graduation

(ii)Revision of the criteria for the status of residence concerning a person who is to practice as a dentist

a)abolition of criteria requiring graduation from a college after completing a course in dentistry

b)changing the starting point of counting of the length of the term permitted to practice as a trainee, which is not exceeding 6 years, from the date of graduation  to the licensed date as a dentist in Japan

(iii)Revision of the criteria for the status of residence concerning a person who is to practice as a public health nurse, midwife or assistant nurse

a)abolition of the criteria requiring graduation from and/or completion of the school or training institution for the public health nurse, midwife or assistant nurse designated in the regulation

b)changing the starting point of counting of the length of the term permitted to practice as a trainee, which is not exceeding 4 years, from the date of graduation  to the licensed date as those in Japan

(iv)Revision of the criteria for the status of residence concerning a person who is to practice as a registered nurse

a)abolition of the criteria requiring graduation from and/or completion of the school or training institution for the registered nurse designated in the regulation

b)changing the starting point of counting and the length of the term permitted to practice as a trainee from 4 years from the date of graduation to 7 years from the licensed date as a registered nurse in Japan.

Foreign Exchange Control/

Movement of Capital

According to the amendment 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.

Amendment bill to revise a part of Foreign Exchange and Foreign Trade Control Law was approved in the Diet session of May ’97, and the necessary revisions to the relevant Ministerial Ordinances were made. The 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 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 from foreign exchange business has been guaranteed. 

Third point is development of ex-post reporting system. This is to prepare an 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.

Implement APEC Leaders’

Transparency Standards on

Services*

-

-

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.

Operational Requirements

No further action taken

-

No further action planned

Licensing and Qualification Requirements of Service Providers

No further action taken

An applicant applying for approval of Foreign Lawyer Registered in Japan is required to conform to the following standards:

i) He or she is qualified as a foreign 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

Foreign Entry

No further action taken

Practice of Japanese Law is permitted for a lawyer qualified as "Attorney at Law" under Japanese law. A Foreign Lawyer Registered in Japan is allowed to practice the law of the country of primary qualification and the designated laws of foreign countries.   Practice of third country law is permitted, according to written advice on each issue from competent persons.

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

Operational Requirements

No further action taken

Japan maintains a liberal regulatory regime with regard to accounting business service.

No further action planned

Licensing and Qualification Requirements of Service Providers

No further action taken

There is a qualification system for Certified Public Accountant (“CPAs”) under the Certified Public Accountant Law.

No further action planned

Foreign Entry

No further action taken

Under the CPA law, auditing services 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 mode 1 and 2 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 and MFN basis.

No further action 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).

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

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 qualification requirement obligation to provide engineering services in Japan.

No further action planned

Foreign Entry

No further action taken

There are no restrictions in terms of national treatment and market access for mode 3. But Japan has not made commitment under the GATS in terms of national treatment and market access for  mode 4(supply of services) except as indicated in the Horizontal Commitment of Japan’s schedule of specific commitment of the GATS.

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

Operational Requirements

Licensing and Qualification Requirements of Service Providers

Foreign Entry

Discriminatory Treatment/

MFN

Operational Requirements

Licensing and Qualification Requirements of Service Providers

Foreign Entry

Discriminatory Treatment/

MFN

Operational Requirements

No further action taken

None shall engage in correspondence-delivery business unless licensed by the Minister of Internal Affairs and Communications (MIAC).

The entry of private sector operators into postal services under license has been allowed since April 1, 2003.

No further action planned

Licensing and Qualification Requirements of Service Providers

No further action taken

When authorization is applied for, (MIAC) must determine whether the certain criteria are fulfilled.

The entry of private sector operators into postal services under license has been allowed since April 1, 2003.

No further action planned

Foreign Entry

No further action taken

There are no discriminatory measures affecting foreign participation in correspondence-delivery business.

The entry of private sector operators into postal services under license has been allowed since April 1, 2003.

No further action planned

Discriminatory Treatment/

MFN

No further action taken

There is no restriction which is inconsistent with the Most-Favored-Nation treatment.

The entry of private sector operators into postal services under license has been allowed since April 1, 2003.

No further action planned

Operational Requirements

No further action taken

Refer to “Manual for Market Entry into Japanese Telecommunications Business”

http://www.soumu.go.jp/joho_ts
usin/eng/Resources/Manual/Entr
y-Manual/Manual-index.html

JAPAN will continue to take measures for more pro-competitive regulatory frameworks as appropriate.

Licensing and Qualification Requirements of Service Providers

No further action taken

Refer to “Manual for Market Entry into Japanese Telecommunications Business”

http://www.soumu.go.jp/joho_ts
usin/eng/Resources/Manual/Entr
y-Manual/Manual-index.html

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

Operational Requirements

No further action taken

No further action will be taken

Licensing and Qualification Requirements of Service Providers

No further action taken

No further action will be taken

Foreign Entry

No further action taken

Japan has made no commitmentsin terms of National Treatment and Market Access under the GATS in  mode 4 except as indicated in Horizontal Commitment of Japan’s schedule of Specific Commitments of the GATS. No restrictions on MA and NT in mode 3 for motion picture and video tape production and distribution services, motion picture projection services and sound recording services.

No further action will be taken

Discriminatory Treatment/

MFN

No further action taken

There is no restriction inconsistent with Most –Favored –Nation treatment.

No further action will be taken

Operational Requirements

No further action taken

Japan maintains a liberal regulatory regime with regard to construction and related engineering services.

No further action will be 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 will be taken

Foreign Entry

No further action taken

No restrictions exist in terms of NT and MA for the supply of services in mode 3. But no commitment in terms of NT and MA for mode 4 except as indicated in the Horizontal Commitment..

No further action will be taken

Discriminatory Treatment/

MFN

No further action taken

There is no restriction inconsistent with Most-Favored-Nation treatment.

No further action will be taken

Operational Requirements

New entrants into petroleum distribution business are required to register to METI by Act of the Quality Control of Gasoline and Other Fuel and Petroleum Stockpiling Act

Licensing and Qualification Requirements of Service Providers

A person who intends to conduct theretail sale of manufactured tobacco must obtain thepermission of the Minister of Finance for each place ofbusiness

A person who intends to wholesale or retail alcoholic beverages must obtain a liquor wholesale or retail license, respectively, for each premise of sales

There are licensing requirements for commission agents’ services and wholesale trade services of fresh foods at national or municipal government level.

Foreign Entry

No further action taken

No commitments in terms of NT and MA in mode 4 except as indicated in Horizontal Commitment of Japan’s schedule of Specific Commitments under the GATS.

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

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 Technology or governors of prefectures. (e-mail; kikan@mext.go.jp / fax; +81-3-6734-3669)

* the formal education is supplied by the schools under Article1 School Education Law.

No further action planned.

Licensing and Qualification Requirements of Service Providers

No action has been taken

In order to obtain the authorization, there are  various requirements concerning qualifications and the number of faculty, curriculum, facilities and equipment, and funds needed for establishment. (e-mail; kikan@mext.go.jp / fax; +81-3-6734-3669)

No further action planned.

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.

 Primary and Secondary Educational Services supplied as formal education( excluding nursery services)

No restrictions exist in terms of national treatment in  mode 3. There is no commitment in terms of national treatment in mode 1,2 and 4.

Higher Educational Services supplied as formal education

There are no commitments in mode 1. There are no restrictions in mode 2. No restrictions exist in terms of national treatment in mode 3. In mode 4, there are no commitments in terms of the market access and national treatment except as indicated in the Horizontal Commitment of Japan’s Schedule of Specific commitments under the GATS.

(e-mail: kikan@mext.go.jp / fax; +81-3-6734-3669)

Adult Education Services and Other Education Services

There are no restrictions in mode 1,2 and 3. In mode 4, there are no commitments in terms of the market access and national treatment except as indicated in the Horizontal Commitment.

In the context of current WTO negotiations, Japan was asked to improve its commitment of Higher Educational Services as formal education. Japan is currently examining the feasibility of such improvement measures.

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; +81-3-6734-3669)

No further action required.

Operational Requirements

No further action required

Japan maintains no restrictions in this sector.

No further improvements planned.

Licensing and Qualification Requirements of Service Providers

No further action required

Japan maintains no restrictions in this sector.

No further improvements planned.

Foreign Entry

No further action required.

No restrictions exist in terms of NT and MA for mode 3. But no commitment in mode 4 except as indicated in the Horizontal Commitment in market access and national treatment listed for supply of services in mode 4.

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.

Operational Requirements

No further action taken

Banking: None shall engage in banking unless licensed by the Prime Minister.(Banking Law, Article 4)

Securities: The Financial Services Agency (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

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: The 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 thereto 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)

However, additional licenses are not required in establishing second or more branches in Japan, although approvals are needed. (Banking Law, Article 47-2)

Local subsidiaries must be corporation with its capital of two billion yen. (Banking Law, Article5)

If an applicant is one whose shareholders totally or partly consist of a person or persons 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 the foreign banks exists are entitled to a status equivalent in substance to the one given under this Law. (Banking Law, Article4, Paragraph 3)

Securities: Under the Law on Foreign Securities Firms, a foreign broker-dealer, who is engaging in 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. (Law on Foreign Securities Firms, Article 3)

A foreign broker-dealer, who is engaging in securities business in foreign jurisdiction under the legislation of that jurisdiction,  can, by acquiring permission by the FSA, sell and purchase securities in the securities exchange market without registering a branch office (as its headquarters ) in Japan. (Article 13-2 of the Law on Foreign Securities Firms) This provision was enforced from April 1, 2004.

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 the FSA. (Law on Foreign Securities Firms, Article 7)

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

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.