Required Report - public distribution

**Date:** 7/26/2004

**GAIN Report Number:** JA4061

JA4061

**Japan**

**Planting Seeds**

**Annual Report**

**2004**

**Approved by:**

![](media/image1.wmf)Kevin Latner

U.S. Embassy

**Prepared by:**

Masaoki Nagahama

**Report Highlights:**

Japanese planting seed imports in 2003 increased slightly from the
previous year to total \$122 million. The U.S. share, as a leading
supplier to Japan, was almost \$41 million or 33.3% of the Japanese
total imports, growing a surprising 12.8% from the previous year in the
dollar value. Japanese seed exports, on the other hand, totaled almost
\$92 million, up 10.8% from the previous year, with export shipments to
the U.S. market accounting for almost \$16 million or 17.3% of the total
export dollar value.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Tokyo \[JA1\]

\[JA\]

Table of Contents

[**I. Executive Summary: 3**](#__RefHeading___Toc77071326)

[II. Production: 3](#production)

[III. Trade: 3](#trade)

[1) Imports: 3](#imports)

[2) Exports: 3](#exports)

[IV. Harmonized System -- Tariff Codes for Planting Seeds in Japan.
5](#iv.-harmonized-system-tariff-codes-for-planting-seeds-in-japan.)

[V. Tariff: 5](#v.-tariff)

[VI.New Seed and Plant Protection Policy:
6](#new-seed-and-plant-protection-policy)

[(Japanese Seeds and Seedlings Act, as revised)
6](#japanese-seeds-and-seedlings-act-as-revised)

[VII. Variety Registrations: 6](#vii.-variety-registrations)

[VIII.International Seed Industry & Market Developments:
8](#international-seed-industry-market-developments)

[]{#__RefHeading___Toc77071326 .anchor}Executive Summary

Japanese planting seed imports in 2003 totaled \$122,347,000 on the
Japanese customs clearance basis, up slightly from \$121,905,000 in the
previous year. The U.S. share as a leading seed exporter to Japan was
33.3% of the total dollar volume, supplying \$40,693,000 worth of seeds
to Japan. In contrast to the slight growth of Japanese imports from the
world, the U.S. share of imports in 2003 was up 12.8% from the previous
year in the dollar value. Japanese seed exports, on the other hand, grew
10.8% from the previous year to \$91,774,000 in 2003, of which the share
of U.S. as Japan's export market was 17.3% or \$15,944,000 in the dollar
value.

Japanese phytosanitary regulations on seed imports do not constitute a
significant impediment to the seed trade with Japan. Japan subscribes to
the International Convention on the Protection of New Plant Varieties
and newly registered seed varieties are protected under Japan's Seeds &
Seedlings Act, revised most recently in June 2003 to make enforcement of
the Act more stringent and effective.

The number of new seed variety applications for legal protection,
accepted for formal review by the Ministry of Agriculture, Forestry and
Fisheries during the Japanese fiscal year 2003 (Apr. 2003 -- Mar. 2004),
increased 27.7% from the previous year to 1,280 cases in total. The
number of seed varieties newly registered for protection during the same
period, however, declined 37.5% from the previous year to 1,119 cases.
The cumulative number of officially registered seed varieties, planted
and grown overseas (i.e. outside Japan) to date, through the most recent
fiscal year (Apr. 2003 -- Mar. 2004 ), was reported as 5,036 cases, up a
surprising 66% from 3,027 in the previous year.

# Production

With Japan's domestic farm sector showing continuing signs of stagnation
in farm production, the focus of Japanese seed business trade continues
to be placed on export marketing and international operations.
Statistical information for domestic production of seeds is not
available.

# Trade

## Imports

Japanese planting seed imports totaled \$122,347,000 in 2003, slightly
up from \$121,905,000 in the previous year. In quantity, however, the
imports dropped 30.6% from 98,166 metric tons in 2002 to 68,113 tons in
2003. Except for the sweet corn seeds, where Japanese import volume grew
19% in 2003, imports of all other seed categories, from vegetable seeds,
forage crop seeds and herbaceous plant seeds to pea / bean seeds,
dropped across the board.

In the most interesting contrast to an all-out decline in imports from
the world at large, Japanese imports from the U.S. in 2003 increased
12.8% in dollar value and rose almost 10% in quantity from the previous
year. Specifically, sweet corn seed imports grew a surprising 32.4% from
the previous year, albeit from a low base, vegetable seed imports 28.3%,
forage crop seed imports 8.2% and herbaceous plant seed imports 18% from
the previous year.

  ----------------------- ------------ ----------- ----------- -----------
  Japanese Seed Imports                                        
  from the World                                               

  Seed Group              Quantity                 Value (US   
                          (Metric                  \$ 000 ) 1/ 
                          Tons)                                

                          2002         2003        2002        2003

  Vegetable Seeds         5,543        5,354       55,863      57,696

  Forage Crop Seeds       89,344       59,678      34,491      33,414

  Herbaceous Plant Seeds  467          316         18,651      17,730

  Pea/Bean Seeds          834          753         2,891       2,376

  Sweet Corn Seeds        191          227         2,417       3,248

  Other Planting Seeds    1,787        1,785       7,592       7,883

  Total :                 98,166       68,113      121,905     122,347
  ----------------------- ------------ ----------- ----------- -----------

  ----------------------- ------------ ------------ ----------- -----------
  Japanese Seed Imports                                         
  from the U.S.                                                 

  Seed Group              Quantity                  Value (US   
                          (Metric                   \$ 000 ) 1/ 
                          Tons)                                 

                          2002         2003         2002        2003

  Vegetable Seeds         1,357        1,742        13,457      17,297

  Forage Crop Seeds       12,781       13,829       15,151      14,793

  Herbaceous Plant Seeds  61           72           1,321       1,600

  Pea / Bean Seeds        551          543          1,775       1,610

  Sweet Corn Seeds        148          196          1,956       2,711

  Other Planting Seeds    470          469          2,403       2,682

  Total:                  15,368       16,851       36,063      40,693
  ----------------------- ------------ ------------ ----------- -----------

(Source: Ministry of Finance Customs Data)

Note: 1/ Based on Japanese customs dollar value, CIF/ Japanese ports of
entry.

[Leading Seed Exporters to Japan]{.underline}

(By Value: \$000 / CIF-Japan)

+-----------------+-------------+-----------+-------------+-----------+
| Vegetable Seeds |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
| Japanese        | 2002        |           | 2003        |           |
| Imports         |             |           |             |           |
|                 |             |           |             |           |
| From :          |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
|                 | Value       | \% Share  | Value       | \% Share  |
|                 | (\$000)     |           | (\$000)     |           |
+-----------------+-------------+-----------+-------------+-----------+
| The World       | 55,863      | 100%      | 57,696      | 100%      |
+-----------------+-------------+-----------+-------------+-----------+
| 1\) U.S.A.      | 13,457      | 24.1%     | 17,297      | 30.0%     |
+-----------------+-------------+-----------+-------------+-----------+
| 2\) Italy       | 9,024       | 16.2%     | 9,008       | 15.6%     |
+-----------------+-------------+-----------+-------------+-----------+
| 3\) Chile       | 5,701       | 10.2%     | 5,093       | 8.8%      |
+-----------------+-------------+-----------+-------------+-----------+
| 4\) China       | 3,189       | 5.7%      | 3,977       | 6.9%      |
+-----------------+-------------+-----------+-------------+-----------+
| 5\) Korea,      | 4,957       | 8.9%      | 3,701       | 6.4%      |
| South           |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+

+-----------------+-------------+-----------+-------------+-----------+
| Sweet Corn      |             |           |             |           |
| Seeds           |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
| Japanese        | 2002        |           | 2003        |           |
| Imports         |             |           |             |           |
|                 |             |           |             |           |
| From :          |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
|                 | Value       | \% Share  | Value       | \% Share  |
|                 | (\$000)     |           | (\$000)     |           |
+-----------------+-------------+-----------+-------------+-----------+
| The World       | 2,417       | 100%      | 3,248       | 100%      |
+-----------------+-------------+-----------+-------------+-----------+
| 1\) U.S.A.      | 1,956       | 80.9%     | 2,711       | 83.5%     |
+-----------------+-------------+-----------+-------------+-----------+
| 2\) Chile       | 459         | 19.0%     | 518         | 16.0%     |
+-----------------+-------------+-----------+-------------+-----------+
| 3\) France      | 0           | 0%        | 12          | 0.4%      |
+-----------------+-------------+-----------+-------------+-----------+

+-----------------+-------------+-----------+-------------+-----------+
| Forage Crop     |             |           |             |           |
| Seeds           |             |           |             |           |
+=================+=============+===========+=============+===========+
| Japanese        | 2002        |           | 2003        |           |
| Imports         |             |           |             |           |
|                 |             |           |             |           |
| From :          |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
|                 | Value       | \% Share  | Value       | \% Share  |
|                 | (\$000)     |           | (\$000)     |           |
+-----------------+-------------+-----------+-------------+-----------+
| The World       | 34,491      | 100%      | 33,414      | 100%      |
+-----------------+-------------+-----------+-------------+-----------+
| 1\) U.S.A.      | 15,151      | 43.9%     | 14,793      | 44.3%     |
+-----------------+-------------+-----------+-------------+-----------+
| 2\) Australia   | 12,830      | 37.2%     | 9,060       | 27.1%     |
+-----------------+-------------+-----------+-------------+-----------+
| 3\) France      | 1,169       | 3.4%      | 2,078       | 6.2%      |
+-----------------+-------------+-----------+-------------+-----------+
| 4\) Austria     | 1,080       | 3.1%      | 1,821       | 5.4%      |
+-----------------+-------------+-----------+-------------+-----------+
| 5\) Canada      | 686         | 2.0%      | 1,217       | 3.6%      |
+-----------------+-------------+-----------+-------------+-----------+

+-----------------+-------------+-----------+-------------+-----------+
| Herbaceous      |             |           |             |           |
| Plant Seeds     |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
| Japanese        | 2002        |           | 2003        |           |
| Imports         |             |           |             |           |
|                 |             |           |             |           |
| From :          |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
|                 | Value       | \% Share  | Value       | \% Share  |
|                 | (\$000)     |           | (\$000)     |           |
+-----------------+-------------+-----------+-------------+-----------+
| The World       | 18,651      | 100%      | 17,730      | 100%      |
+-----------------+-------------+-----------+-------------+-----------+
| 1\) Chile       | 6,528       | 35.0%     | 7,176       | 40.5%     |
+-----------------+-------------+-----------+-------------+-----------+
| 2\) Netherlands | 3,108       | 16.7%     | 3,328       | 18.8%     |
+-----------------+-------------+-----------+-------------+-----------+
| 3\) China       | 4,151       | 22.3%     | 1,735       | 9.8%      |
+-----------------+-------------+-----------+-------------+-----------+
| 4\) U.S.A.      | 1,321       | 7.1%      | 1,600       | 9.0%      |
+-----------------+-------------+-----------+-------------+-----------+
| 5\) France      | 244         | 1.3%      | 826         | 4.7%      |
+-----------------+-------------+-----------+-------------+-----------+

+-----------------+-------------+-----------+-------------+-----------+
| Pea / Bean      |             |           |             |           |
| Seeds           |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
| Japanese        | 2002        |           | 2003        |           |
| Imports         |             |           |             |           |
|                 |             |           |             |           |
| From :          |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
|                 | Value       | \% Share  | Value       | \% Share  |
|                 | (\$000)     |           | (\$000)     |           |
+-----------------+-------------+-----------+-------------+-----------+
| The World       | 2,891       | 100%      | 2,376       | 100%      |
+-----------------+-------------+-----------+-------------+-----------+
| 1\) U.S.A.      | 1,775       | 61.4%     | 1,610       | 67.8%     |
+-----------------+-------------+-----------+-------------+-----------+
| 2\) Netherlands | 123         | 4.3%      | 166         | 7.0%      |
+-----------------+-------------+-----------+-------------+-----------+
| 3\) Chile       | 100         | 3.5%      | 156         | 6.6%      |
+-----------------+-------------+-----------+-------------+-----------+

+-----------------+-------------+-----------+-------------+-----------+
| Other           |             |           |             |           |
| Miscellaneous   |             |           |             |           |
| Plant Seeds     |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
| Japanese        | 2002        |           | 2003        |           |
| Imports         |             |           |             |           |
|                 |             |           |             |           |
| From :          |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
|                 | Value       | \% Share  | Value       | \% Share  |
|                 | (\$000)     |           | (\$000)     |           |
+-----------------+-------------+-----------+-------------+-----------+
| The World       | 7,592       | 100%      | 7,883       | 100%      |
+-----------------+-------------+-----------+-------------+-----------+
| 1\) U.S.A.      | 2,403       | 31.6%     | 2,682       | 34.0%     |
+-----------------+-------------+-----------+-------------+-----------+
| 2\) China       | 2,042       | 26.9%     | 2,349       | 29.8%     |
+-----------------+-------------+-----------+-------------+-----------+
| 3\) Korea       | 652         | 8.6%      | 673         | 8.5%      |
| (South)         |             |           |             |           |
+-----------------+-------------+-----------+-------------+-----------+
| 4\) Thailand    | 709         | 9.3%      | 643         | 8.2%      |
+-----------------+-------------+-----------+-------------+-----------+
| 5\) Taiwan      | 413         | 5.4%      | 398         | 5.0%      |
+-----------------+-------------+-----------+-------------+-----------+

## 2) Exports:

-   Japanese seed exports in 2003 totaled \$91,774,000 in value, up
    10.8% from the previous year, with the export value well in excess
    of the previous year in all of the key seed categories. Japanese
    total export quantity in 2003 was up 5.9% from the previous year to
    1,855 metric tons.

-   Japanese export shipments to the U.S in 2003 totaled \$15,944,000,
    up 7% in value from the previous year and accounted for 17.3% of the
    Japanese total seed exports. Vegetable seeds and herbaceous plant
    seeds led Japanese exports to the U.S. as an export market, as shown
    in the 2-year comparison tables below.

  ----------------------- -------------- ----------- ----------- -----------
  Japanese Seed Exports                                          
  to the World                                                   

  Seed Group              Quantity                   Value (US   
                          (Metric Tons)              \$000 ) 1/  

                          2002           2003        2002        2003

  Vegetable Seeds         1,249          1,366       56,044      62,605

  Forage Crop Seeds       141            34          151         176

  Herbaceous Plant Seeds  36             13          23,549      25,259

  Other Planting Seeds    326            442         3,073       3,734

  Total:                  1,752          1,855       82,817      91,774
  ----------------------- -------------- ----------- ----------- -----------

(Source: Ministry of Finance Customs Data.)

Note: 1/ Based on Japanese customs dollar value, FOB/Japanese ports of
export.

  ------------------------ ------------- ----------- ----------- -----------
  TO THE U.S. - BY SEED                                          
  GROUP                                                          

  Seed Group               Quantity                  Value (US   
                           (Metric Tons)             \$000 ) 1/  

                           2002          2003        2002        2003

  Vegetable Seeds          43            45          4,041       4,152

  Forage Crop Seeds        67            17          132         91

  Herbaceous Seeds         6             4           10,451      11,152

  Other Planting Seeds     8             14          274         549

  Total:                   124           80          14,898      15,944
  ------------------------ ------------- ----------- ----------- -----------

(Source: Ministry of Finance Customs Data.)

Note: 1/ Based on Japanese customs dollar value, FOB/Japanese ports of
export.

# IV. Harmonized System -- Tariff Codes for Planting Seeds in Japan.

+----------------+-------------------------------+--------------------+
| Reference: HS  |                               |                    |
| (Harmonized    |                               |                    |
| System) tariff |                               |                    |
| codes, used in |                               |                    |
| statistical    |                               |                    |
| tabulation for |                               |                    |
| each seed      |                               |                    |
| grouping       |                               |                    |
+----------------+-------------------------------+--------------------+
| Seed Group     | Imports                       | Exports            |
+----------------+-------------------------------+--------------------+
| Vegetable      | 1209.91-010; 1209.91-090      | 1209.91-000        |
| Seeds          |                               |                    |
+----------------+-------------------------------+--------------------+
| Sugar Beet     | 1209.11-000; 1209.19-000      | None               |
| Seeds          |                               |                    |
+----------------+-------------------------------+--------------------+
| Forage Crop    | 1209.21-000; 1209.22-000;     | 1209.21-000;       |
| Seeds          | 1209.23-000; 1209.24-000;     | 1209.22-000;       |
|                | 1209.25-000; 1209.26-000;     | 1209.23-000;       |
|                | 1209.29-000; 1002.00-010;     | 1209.24-000;       |
|                | 1004.00--010;1005.10-010;     | 1209.25-000;       |
|                | 1007.00-010; 1008.10-010;     | 1209.26-000;       |
|                | 1008.90-010;                  |                    |
|                |                               | 1209.29-000;       |
+----------------+-------------------------------+--------------------+
| Herbaceous     | 1209.30-000                   | 1209.30-000        |
| Seeds          |                               |                    |
+----------------+-------------------------------+--------------------+
| Pea / bean     | 0713.10-010; 0713.10-211;     | None               |
| Seeds          | 0713.20-010; 0713.33-010;     |                    |
|                | 0713.33-210; 0713.39-010;     |                    |
|                | 0713.39-210; 0713.40-010;     |                    |
|                |                               |                    |
|                | 0713.50-010; 0713.50-210;     |                    |
|                | 0713.90-010; 0713.90-210      |                    |
+----------------+-------------------------------+--------------------+
| Sweet Corn     | 0712.90-031                   | None               |
| Seeds          |                               |                    |
+----------------+-------------------------------+--------------------+
| Other Planting | 1209.99-000                   | 1209.99-000        |
| Seeds          |                               |                    |
+----------------+-------------------------------+--------------------+

# V. Tariff:

With the exception of seeds included in the in the table below, there is
no import duty levied on the planting seeds.

+--------------------------+---------------------------+---------------+
| # Crop                   | HS Code                   | Tariff Rates  |
|                          |                           |               |
|                          | (Harmonized System)       | ( WTO )       |
+--------------------------+---------------------------+---------------+
| Pea Seeds                | 0713.10.211               | 6.0 %         |
+--------------------------+---------------------------+---------------+
| Kidney Bean Seeds        | 0713.33.210               | 6.0 %         |
+--------------------------+---------------------------+---------------+
| Broad Bean Seeds         | 0713.50.210               | 6.0 %         |
+--------------------------+---------------------------+---------------+
| Other Seeds              | 0713.39.210               | 6.0 %         |
+--------------------------+---------------------------+---------------+
| Other Seeds              | 0713.90.210               | 6.0 %         |
+--------------------------+---------------------------+---------------+

( Source: Customs Tariff Schedule of Japan -- 2002 )

# New Seed and Plant Protection Policy: 

# (Japanese Seeds and Seedlings Act, as revised)

The planting seed business in Japan is regulated primarily under the
Seeds and Seedlings Act. As a result of a 1991 revision in the
International Convention for Protection of New Plant Varieties (UPOV) to
which Japan is a signatory, the Japanese Seed and Seedlings Act was
revised in 1998 for enforcement, starting December 24, 1998, and most
recently in June, 2003.

Over the years, numerous cases and incidents of piracy and infringement
of the new seed variety growers' lawful rights to legal protection have
been reported in Japan, resulting frequently in the loss of their lawful
claims for financial compensation. In one case, a rural farmer had sold
off a strawberry seed to farmers in Korea and China without obtaining an
explicit approval from the original breeder and, in another case, a new
vegetable variety was being traded between corporate entities in similar
transactions, only to discover the background of such criminal piracy in
the form of final crops, imported eventually into the Japanese market
from these countries. As a result, Japan's Seeds and Seedlings Act was
revised in June, 2003 to provide lawful new variety growers with an
added protection against illegal production, sale and trade of the
registered varieties and also to enforce criminal provisions of the Act
against piracy in trade of not only seed varieties but also crops,
sourced from those varieties, duly registered under the Act.

Revisions of the Act can be outlined as follows.

1)  Expand the scope of penal regulations against violations of the Act.
    (Article #6)

> -Before revision...Transaction was confined strictly to planting
> seeds.
>
> -After revision... ..Scope of transactions expanded to cover not only
> "seeds" but "crops" .

2)  Raise maximum amount of penal fine for corporate violators (Article
    #60)

> -Before revision....3 million Yen
>
> -After revision.....100 million Yen.

In line with revisions of the Seeds and Seedlings Act, Japanese Customs
Law was amended also on March 28, 2003 for taking effect on April 1,2003
to authorize Japanese customs officials to order confiscation,
disposition or destruction, during the customs clearance inspection
process, of imported planting seeds and/or crops in violation of
provisions of the Act.

# VII. Variety Registrations:

-   The number of seed variety applications for legal protection under
    the Seeds and Seedlings Act, accepted by the Ministry of
    Agriculture, Forestry and Fisheries from private individuals, seed
    companies, food makers, agricultural co-operatives and institutional
    entities n farm research, totaled, 1280 in 2003, up 27.7% from 1,002
    in the previous year.(i.e. April-March). However, the number of new
    variety registrations, officially authorized, totaled 698 cases,
    down 37.5% from 1,118 in the previous fiscal year, as shown in the
    table below.

+----------------------+-----------+-----------+-----------+-----------+
| Number of Seed       |           |           |           |           |
| Variety Applications |           |           |           |           |
| & Registrations      |           |           |           |           |
|                      |           |           |           |           |
| 2 Yr. Comparison     |           |           |           |           |
| (Japan Fiscal Year:  |           |           |           |           |
| March through April  |           |           |           |           |
| )                    |           |           |           |           |
+----------------------+-----------+-----------+-----------+-----------+
| Crops                | App       |           | New       |           |
|                      | lications |           | Variety   |           |
|                      |           |           | Regi      |           |
|                      |           |           | strations |           |
+----------------------+-----------+-----------+-----------+-----------+
|                      | 2002      | 2003      | 2002      | 2003      |
+----------------------+-----------+-----------+-----------+-----------+
| Edible Crops         | 42        | 56        | 63        | 27        |
+----------------------+-----------+-----------+-----------+-----------+
| Vegetables           | 46        | 55        | 62        | 25        |
+----------------------+-----------+-----------+-----------+-----------+
| Fruits               | 39        | 43        | 39        | 28        |
+----------------------+-----------+-----------+-----------+-----------+
| Forage Crops         | 10        | 8         | 15        | 10        |
+----------------------+-----------+-----------+-----------+-----------+
| Herbaceous Plants    | 644       | 844       | 718       | 436       |
+----------------------+-----------+-----------+-----------+-----------+
| Ornamental Plants    | 190       | 243       | 176       | 154       |
+----------------------+-----------+-----------+-----------+-----------+
| Forest Trees         | 1         | 1         | 1         | 1         |
+----------------------+-----------+-----------+-----------+-----------+
| Others               | 30        | 30        | 44        | 17        |
+----------------------+-----------+-----------+-----------+-----------+
| Total:               | 1,002     | 1,280     | 1,118     | 698       |
+----------------------+-----------+-----------+-----------+-----------+

> (Source: Ministry of Agriculture, Forestry and Fisheries)

-   The role of foreign countries as a provider of soil and other
    resources for cultivation and

> growing of the new seed varieties continues to be important . As of
> the end of March, 2004, the number of applications fort new
> registration for seed varieties, grown outside Japan, was officially
> reported as 3,261 cases, up 234 cases or 7.7% from the previous year,
> and the number of newly authorized registrations for variety
> protection under the Seed Act, accepted by the Japanese Ministry of
> Agriculture, Forestry and Fisheries, was 5,036 cases, up 10%
> respectively from the previous year, as indicated in the table below
> by country.

+---------+---------+------+-------+------+-----+---------+---------+
| -Number |         |      |       |      |     |         |         |
| of      |         |      |       |      |     |         |         |
| Regist  |         |      |       |      |     |         |         |
| rations |         |      |       |      |     |         |         |
| of Seed |         |      |       |      |     |         |         |
| Va      |         |      |       |      |     |         |         |
| rieties |         |      |       |      |     |         |         |
| By Crop |         |      |       |      |     |         |         |
| &       |         |      |       |      |     |         |         |
| C       |         |      |       |      |     |         |         |
| ountry, |         |      |       |      |     |         |         |
| grown   |         |      |       |      |     |         |         |
| outside |         |      |       |      |     |         |         |
| Japan   |         |      |       |      |     |         |         |
| --      |         |      |       |      |     |         |         |
|         |         |      |       |      |     |         |         |
| As of   |         |      |       |      |     |         |         |
| the end |         |      |       |      |     |         |         |
| of      |         |      |       |      |     |         |         |
| March,  |         |      |       |      |     |         |         |
| 2004    |         |      |       |      |     |         |         |
| (In     |         |      |       |      |     |         |         |
| pare    |         |      |       |      |     |         |         |
| nthesis |         |      |       |      |     |         |         |
| -       |         |      |       |      |     |         |         |
| -Number |         |      |       |      |     |         |         |
| of      |         |      |       |      |     |         |         |
| Reg     |         |      |       |      |     |         |         |
| istered |         |      |       |      |     |         |         |
| Seed    |         |      |       |      |     |         |         |
| Var     |         |      |       |      |     |         |         |
| ieties) |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Country | Applied | Ed   | Vege  | F    | For | Her     | Orn     |
|         |         | ible | table | ruit | age | baceous | amental |
|         | (Regi   |      |       |      |     |         |         |
|         | stered) | C    |       | T    | Cr  | Plants  | Plants  |
|         |         | rops |       | rees | ops |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Israel  | 291     | \-   | 1 (1) | \-   | \-  | 290     | \-      |
|         | (186)   |      |       |      |     | (185)   |         |
+---------+---------+------+-------+------+-----+---------+---------+
| T       | 22 (14) | \-   | 1 (1) | \-   | \-  | 21 (13) | \-      |
| hailand |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| China   | 10 (6)  | 5    | \-    | 2    | \-  | 3 (1)   | \-      |
|         |         | (5)  |       | (0)  |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Korea   | 3 (0)   | \-   | \-    | \-   | \-  | 3 (0)   | \-      |
| ,So.    |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Taiwan  | 10 (2)  | 1    | 2 (2) | \-   | \-  | 7 (0)   | \-      |
|         |         | (0)  |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| In      | 2 (0)   | \-   | \-    | \-   | 2   | \-      | \-      |
| donesia |         |      |       |      | (0) |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Neth    | 1,858   | \-   | 11    | \-   | \-  | 1,431   | 416     |
| erlands | (1,230) |      | (10)  |      |     | (957)   | (263)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Germany | 838     | \-   | \-    | 1    | \-  | 493     | 344     |
|         | (583)   |      |       | (0)  |     | (300)   | (283)   |
+---------+---------+------+-------+------+-----+---------+---------+
| France  | 345     | 8    | 2 (1) | 8    | \-  | 150     | 177     |
|         | (250)   | (2)  |       | (5)  |     | (105)   | (137)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Italy   | 223     | \-   | \-    | \-   | \-  | 182     | 41 (29) |
|         | (140)   |      |       |      |     | (111)   |         |
+---------+---------+------+-------+------+-----+---------+---------+
| U. K.   | 303     | \-   | 2 (2) | 7    | \-  | 181     | 113     |
|         | (197)   |      |       | (7)  |     | (96)    | (92)    |
+---------+---------+------+-------+------+-----+---------+---------+
| Denmark | 262     | \-   | \-    | \-   | \-  | 147     | 115     |
|         | (136)   |      |       |      |     | (85)    | (51)    |
+---------+---------+------+-------+------+-----+---------+---------+
| Ireland | 8 (0)   | \-   | \-    | \-   | \-  | 6 (0)   | 2 (0)   |
+---------+---------+------+-------+------+-----+---------+---------+
|         |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Belgium | 11 (3)  | \-   | \-    | 1    | \-  | 7 (1)   | 3 (2)   |
|         |         |      |       | (0)  |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Swit    | 7 (1)   | \-   | \-    | 2    | \-  | 5 (1)   | \-      |
| zerland |         |      |       | (0)  |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Spain   | 4 (3)   | \-   | \-    | \-   | \-  | 3 (2)   | 1 (1)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Austria | 1 (0)   | \-   | \-    | \-   | \-  | 1 (0)   | \-      |
+---------+---------+------+-------+------+-----+---------+---------+
| Sweden  | 1 (1)   | \-   | \-    | \-   | \-  | \-      | 1 (1)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Norway  | 1 (1)   | \-   | \-    | \-   | \-  | \-      | 1 (1)   |
+---------+---------+------+-------+------+-----+---------+---------+
| S       | 2 (1)   | \-   | \-    | \-   | \-  | 2 (1)   | \-      |
| lovakia |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Czech   | 1 (0)   | \-   | \-    | \-   | \-  | 1 (0)   | \-      |
+---------+---------+------+-------+------+-----+---------+---------+
| Poland  | 4 (4)   | \-   | \-    | \-   | \-  | 4 (4)   | \-      |
+---------+---------+------+-------+------+-----+---------+---------+
| P       | 2 (2)   | \-   | \-    | \-   | \-  | \-      | 2 (2)   |
| ortugal |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| **U     | **588   | **1  | **22  | **6  | *   | **388   | **161   |
| .S.A.** | (371)** | (    | (     | (    | *10 | (220)** | (122)** |
|         |         | 1)** | 16)** | 4)** | (8  |         |         |
|         |         |      |       |      | )** |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Ar      | 1 (0)   | \-   | \-    | \-   | \-  | 1 (0)   | \-      |
| gentina |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Ecuador | 1 (0)   | \-   | \-    | \-   | \-  | \-      | 1 (0)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Costa   | 21 (6)  | \-   | \-    | \-   | \-  | 21 (6)  | \-      |
| Rica    |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Canada  | 4 (2)   | \-   | \-    | \-   | \-  | 2 (0)   | 2 (2)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Mexico  | 1 (0)   | \-   | \-    | \-   | \-  | \-      | 1 (0)   |
+---------+---------+------+-------+------+-----+---------+---------+
| Brazil  | 7 (60   | \-   | \-    | 1    | \-  | 6 (5)   | \-      |
|         |         |      |       | (1)  |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Au      | 108     | \-   | \-    | 2    | \-  | 101     | 5 (0)   |
| stralia | (66)    |      |       | (0)  |     | (66)    |         |
+---------+---------+------+-------+------+-----+---------+---------+
| New     | 86 (49) | \-   | \-    | 15   | \-  | 19 (15) | 52 (32) |
| Zealand |         |      |       | (2)  |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| South   | 10 (1)  | \-   | \-    | \-   | \-  | 9 (1)   | 1 (0)   |
| Africa  |         |      |       |      |     |         |         |
+---------+---------+------+-------+------+-----+---------+---------+
| Total   | 5,036   | 15   | 41    | 45   | 12  | 3,484   | 1,439   |
|         | (3,261) | (8)  | (33)  | (19) | (8) | (2,175) | (1,018) |
+---------+---------+------+-------+------+-----+---------+---------+

# International Seed Industry & Market Developments:

> In the light of a number of isolated cases of suspected violation of
> the Japanese Seed & Seedlings Act involving illegal uses of seed
> varieties, registered in Japan for legal protection by original
> growers but culminating in the form of "crops", grown and harvested
> overseas, such as Korea and China, for export to the Japanese market
> at the expense of original growers' rights, 2 case studies, involving
> strawberries and rush for Japanese *Tatami* matting are worthy of a
> brief review. Also, another move by the Government of Japan, as
> reported by mass media, to sign an international treaty on the sharing
> of genetic research data and resources for plants among the treaty
> member countries, is as indicative as the previous 2 case studies of
> Japan's increasing sensitivity and commitment to legal protection of
> the intellectual property rights.
>
> [Case of Strawberries:]{.underline}
>
> During the last few years, there have been sporadic reports that a
> good number of the seeds of commercially popular strawberry varieties,
> developed and properly registered in Japan by the original growers,
> were illegally used in Korea without prior approval from and financial
> compensation for the rightful variety growers and that they were being
> transformed eventually into crops for export to Japan. There is a
> report that, in approximately 70% of the planting area for
> strawberries in Korea, these illegally used seeds are responsible for
> the Korean strawberry production.
>
> In early 2004, the Korean legislature enacted a bill to include
> strawberries in the target crops for legal protection under its "Seed
> Industry Act" and the news is that the Japanese growers with lawful
> rights to the strawberry seed varieties in question are preparing to
> file separate variety registrations with the authorities in Korea with
> the expectation that , by so doing, they could either bar Korean
> violators of their rights to export strawberries to the Japanese
> market or seek legitimate financial compensation from them.
>
> [Case of Rush for Japanese *Tatami* matting (ie. Straw
> mats)]{.underline}
>
> Kumamoto Prefecture in Kyushu is Japan's largest producer of rush for
> Japanese Tatami mats and went public in September last year with a
> news release that their rush varieties, protected under the Japanese
> Seeds and Seedlings Act, were illegally abused in China for commercial
> export shipments to Japan. Samples of rush, pulled out of a Chinese
> Japan-bound export shipment at one of the Japanese customs districts
> for sampling tests by use of a DNA inspection technology, had
> reportedly proven that the crop was one of Kumamoto Prefecture's own
> protected variety.
>
> In the absence of a credible evidence or confirmed information on the
> specific Chinese violator of Kumamoto's lawful rights, the prefecture
> filed an administrative request with all the 9 customs districts of
> Japan, providing them with full details on the specific
> characteristics of the variety, that any Japan-bound rush shipment
> from China, suspected of violation, be closely inspected, based on
> samples, and tested further with active support of a government-funded
> "Seeds and Seedlings Inspection Service Center" with DNA research
> capabilities to identify the nature of such an imported product. If,
> after such a comprehensive test inspection, the cargo is proven to be
> in violation, the Japanese customs office has been authorized to
> either abandon or confiscate the cargo as a result of a revision, made
> last year, in the Japanese Customs Act, empowering the customs
> officials to either abandon or confiscate an imported shipment of
> crops in violation of the Japanese Seeds and Seedlings Act.
>
> [International Treaty on the Sharing of Genetic Research Data and
> Resources:]{.underline}
>
> In all likelihood, Japanese legislature next year will cast an
> affirmative vote for this international treaty, ratified already by 40
> countries for enforcement out of 54 countries and EU, listed as
> signatory members. Confined in scope to 35 edible crops, including
> rice and wheat, and 29 forage crops, with the expiry dates of variety
> registration fully matured, this treaty is intended to make the
> genetic research and resource information on these crops available for
> the member countries by means of a simplified access procedure to help
> facilitate further development of new genetic technology in the
> planting seeds and seedlings sector. If and when a commercial profit
> results from such a new technology, part of the profit is required to
> be donated, as a matter of treaty obligation, to developing countries
> through the Food and Agricultural Organization (FAO) of the United
> Nations.
>
> On the grounds that the extent to which the lawful rights and benefits
> of potential intellectual property owners can be assured and protected
> was not clear enough, Japan, along with the U.S, has maintained strong
> reservations about the value of such a treaty to member countries. As
> a result of Germany, U.K and Italy signing the treaty recently as new
> members, however, Japan and the U.S. reportedly changed their policy
> in favor of the treaty.