RESTRICTED  
  
WT/TPR/S/438  
4 January 2023 
(23-0003) Page: 1/146 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
JAPAN 
This report, prepared for the fifteenth  Trade Policy Review of Japan, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing 
the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World 
Trade Organization), sought clarification from Japan on its trade policies and practices.  
 
Any technical questions arising from this report may be addressed to Mr Masahiro Hayafuji (tel: 022 
739 5873), Mr Arne Klau (tel: 022 739 5706) and Mr Mukela Luanga ( tel: 022 739 6328).  
 
Document WT/TPR/G/438 contains the policy statement submitted by Japan.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Japan. This report was drafted in English.  WT/TPR/S/ 438 • Japan  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Recent Economic Developments  ................................ ................................ ................... 15 
1.2.1    Growth and employment  ................................ ................................ .......................... 15 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 16 
1.2.3    Monetary policy, prices, and the exchange rate  ................................ ........................... 17 
1.2.4    Structural reforms and privatization  ................................ ................................ ........... 17 
1.2.5    Balance of payments  ................................ ................................ ................................ 17 
1.2.6    Outlook  ................................ ................................ ................................ .................. 18 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 18 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 18 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 22 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  25 
2.1   General Framework  ................................ ................................ ................................ ....25 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 25 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 27 
2.3.1    WTO ................................ ................................ ................................ ...................... 27 
2.3.2    Regional trade agreements  ................................ ................................ ....................... 31 
2.3.3    Unilateral preferences  ................................ ................................ .............................. 32 
2.3.4    Other arrangements  ................................ ................................ ................................ .33 
2.4   Investment Regime  ................................ ................................ ................................ ....33 
2.4.1    Investment framework  ................................ ................................ ............................. 33 
2.4.2    Business environment  ................................ ................................ .............................. 35 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  37 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 37 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 37 
3.1.2    Customs valuation  ................................ ................................ ................................ ...39 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 39 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 40 
3.1.4.1    MFN applied tariff  ................................ ................................ ................................ ..40 
3.1.4.2    Bound tariff  ................................ ................................ ................................ .......... 45 
3.1.4.3    Tariff reduction s and exemptions  ................................ ................................ ............ 45 
3.1.4.4    Preferential tariff  ................................ ................................ ................................ ...46 
3.1.4.5    Retaliatory tariff system ................................ ................................ ......................... 48 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 48 
3.1.6    Import prohibitions, licensing, and quotas  ................................ ................................ ...48 
3.1.6.1    Import prohibitions  ................................ ................................ ............................... 48 
3.1.6.2    Import licensing (approvals) and quotas  ................................ ................................ ..49 WT/TPR/S/ 438 • Japan  
 
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  3.1.7    Anti-dumping, countervailing, and safe guard measures  ................................ ................ 51 
3.1.7.1    Anti-dumping measures  ................................ ................................ ......................... 51 
3.1.7.2    Countervailing measures  ................................ ................................ ........................ 51 
3.1.7.3    Safeguards  ................................ ................................ ................................ ........... 52 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 52 
3.2.1    Customs procedures and requirements  ................................ ................................ .......52 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 52 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 53 
3.2.3.1    Export prohibitions  ................................ ................................ ................................ 53 
3.2.3.2    Export restrictions and licensing  ................................ ................................ ............. 53 
3.2.3.2.1    Export Trade Control Order  ................................ ................................ ................. 54 
3.2.3.2.2    Foreign Exchange Order  ................................ ................................ ...................... 54 
3.2.3.2.3    Export quotas  ................................ ................................ ................................ ....54 
3.2.4   Export support and promotion  ................................ ................................ ................... 55 
3.2.4.1    Export subsidies  ................................ ................................ ................................ ...55 
3.2.4.2    Taxation and special customs procedures  ................................ ................................ .55 
3.2.4.3    Free zones and free ports  ................................ ................................ ...................... 55 
3.2.4.4    Export promotion  ................................ ................................ ................................ ..56 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..56 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......58 
3.3.1    Incentives  ................................ ................................ ................................ ............... 58 
3.3.1.1    Taxation and tax incentives  ................................ ................................ .................... 58 
3.3.1.2    Tax incentives  ................................ ................................ ................................ ......59 
3.3.1.3    Subsidies and other assistance programmes  ................................ ............................. 60 
3.3.2    Standards and other technical requirements  ................................ ............................... 60 
3.3.2.1    Legal and institutional framework  ................................ ................................ ........... 60 
3.3.2.2    Standards  ................................ ................................ ................................ ............ 62 
3.3.2.3    Technical regulations  ................................ ................................ ............................. 63 
3.3.2.4    Conformity assessment and inspection  ................................ ................................ ....63 
3.3.2.5    Labelling requirements  ................................ ................................ .......................... 63 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....65 
3.3.3.1    Sanitary and phytosanitary measures  ................................ ................................ ......65 
3.3.3.2    Legislative framework  ................................ ................................ ............................ 66 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 68 
3.3.4.1    Competition policy  ................................ ................................ ................................ 68 
3.3.4.2    Price controls ................................ ................................ ................................ ........ 71 
3.3.4.3    Corporate governance  ................................ ................................ ........................... 72 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 73 
3.3.6    Government procurement  ................................ ................................ ......................... 74 
3.3.7    Intellectual property rights  ................................ ................................ ........................ 79 WT/TPR/S/ 438 • Japan  
 
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  3.3.7.1    Features and IP strategy  ................................ ................................ ........................ 79 
3.3.7.2    Policies on promotion and commercialization of innovation  ................................ ......... 80 
3.3.7.3    International cooperation and harmonization  ................................ ............................ 83 
3.3.7.4    General regulatory framework  ................................ ................................ ................ 85 
3.3.7.5    Patents  ................................ ................................ ................................ ................ 85 
3.3.7.6    Utility mode ls (UMs)  ................................ ................................ .............................. 88 
3.3.7.7    Plant v ariety rights and genetic resources  ................................ ................................ 89 
3.3.7.8    Designs  ................................ ................................ ................................ ............... 90 
3.3.7.9    Trademarks  ................................ ................................ ................................ .......... 91 
3.3.7.10    Geographical indications  ................................ ................................ ...................... 93 
3.3.7.11    Undisclosed information and trade secrets  ................................ .............................. 93 
3.3.7.12    Copyright  ................................ ................................ ................................ ........... 93 
3.3.7.13    Enforcement  ................................ ................................ ................................ .......95 
3.3.7.14    COVID -19 measures  ................................ ................................ ............................ 98 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ...................  100  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  100 
4.1.1    Agriculture  ................................ ................................ ................................ ............  100 
4.1.1.1    Agricultural policy  ................................ ................................ ...............................  100 
4.1.1.2    Institutional and legal framework  ................................ ................................ ..........  101 
4.1.1.3    Trade policies and border measures  ................................ ................................ ...... 101 
4.1.1.4    Domestic support  ................................ ................................ ................................  102 
4.1.1.4.1    General support programmes  ................................ ................................ ............  102 
4.1.1.4.2    Support level  ................................ ................................ ................................ ... 105 
4.1.1.4.2.1    WTO notifications  ................................ ................................ ..........................  105 
4.1.1.4.3    OECD indicators  ................................ ................................ ...............................  105 
4.1.1.4.4    Specific products  ................................ ................................ ..............................  105 
4.1.1.4.4.1    Rice ................................ ................................ ................................ .............  105 
4.1.1.4.4.2    Other cereals, sugar beet, starch potatoes, buckwheat, and rapeseed  ..................  106 
4.1.1.4.4.3    Fruits and vegetables  ................................ ................................ .....................  106 
4.1.1.4.4.4    Livestock and livestock products  ................................ ................................ ..... 106 
4.1.1.4.4.5    Dairy  ................................ ................................ ................................ ...........  107 
4.1.1.4.4.6    Tobacco  ................................ ................................ ................................ ....... 107 
4.1.2    Fisheries  ................................ ................................ ................................ ...............  107 
4.1.2.1    Policy and institutional issues  ................................ ................................ ...............  107 
4.1.2.2    Regulatory developments  ................................ ................................ .....................  108 
4.1.2.3    International agreements  ................................ ................................ .....................  108 
4.1.2.4    Border and domestic support measures  ................................ ................................ . 109 
4.2   Mining and Energy  ................................ ................................ ................................ .... 109 
4.2.1    Mining  ................................ ................................ ................................ ..................  109 
4.2.2    Energy ................................ ................................ ................................ .................  109 WT/TPR/S/ 438 • Japan  
 
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  4.2.2.1    Hydrocarbons  ................................ ................................ ................................ ..... 110 
4.2.2.1.1    Coal ................................ ................................ ................................ ...............  110 
4.2.2.1.2    Oil and gas  ................................ ................................ ................................ ...... 111 
4.2.2.2    Electricity  ................................ ................................ ................................ ...........  112 
4.3   Manufacturing  ................................ ................................ ................................ ..........  113 
4.3.1    General  ................................ ................................ ................................ ................  113 
4.3.2    Policy developments  ................................ ................................ ...............................  113 
4.3.3    Border measures  ................................ ................................ ................................ ... 114 
4.4   Services  ................................ ................................ ................................ ..................  114 
4.4.1    Financial services  ................................ ................................ ................................ ... 114 
4.4.1.1    General background  ................................ ................................ ............................  114 
4.4.1.2    Regulatory developments in banking  ................................ ................................ ..... 117 
4.4.1.3    Regulatory developments in insurance  ................................ ................................ ... 119 
4.4.2    Telecommunication services  ................................ ................................ ....................  119 
4.4.3    Transport services  ................................ ................................ ................................ . 121 
4.4.3.1    Maritime transport  ................................ ................................ ..............................  121 
4.4.3.2    Air transport  ................................ ................................ ................................ ....... 122 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 124  
 
CHARTS  
 
Chart 1.1 Product composition of merchandise trade by main HS section, 2019 and 2021  ........... 20 
Chart 1.2 Direction of merchandise trade by main partners, 2019 and 2021  .............................. 21 
Chart  3.1 Tariff distribution by type of duty, FY2022  ................................ .............................. 41 
Chart  3.2 Share of non -ad valorem  duties, by HS section, FY2022  ................................ ........... 43 
Chart  3.3 Tariff escalation by 2 -digit ISIC industry, FY2022  ................................ ..................... 45 
Chart  3.4 Simple average applied MFN tariff rates, by HS section, FY2019 and FY202 2 ............... 46 
Chart  3.5 IP revenue, 2000 -21 ................................ ................................ ............................ 79 
Chart 3.6 Charges for the use of IP, n.i.e., 2000 -21 ................................ ............................... 80 
Chart 3.7 Import seizures, 2014 -21 ................................ ................................ ..................... 97 
Chart 3.8 IP cases handled by courts, and individuals arrested for IP infringement, 2009 -21 .......98 
 
TABLES  
 
Table 1.1 Basic economic indicators, 2017 -21 ................................ ................................ ........ 13 
Table 1.2 Selected macroeconomic indicators, 2017 -21 ................................ .......................... 14 
Table 1.3 Balance of payments, 2017 -21 ................................ ................................ .............. 18 
Table 1.4 Merchandise trade by main SITC Rev.3 classification category, 2017 -21 ..................... 19 
Table 1.5 Trade in services, 2017 -21 ................................ ................................ .................... 22 
Table 1.6 Inbound and outbound stock of direct investment, by main origin and destination,  
2017-21 ................................ ................................ ................................ ........................... 23 WT/TPR/S/ 438 • Japan  
 
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  Table 1.7 Foreign direct investment, 2017 -21 ................................ ................................ ........ 23 
Table  2.1 Major trade -related laws and regulations, October 2022  ................................ ........... 26 
Table  2.2 Noti fications by Japan under WTO  Agreements, September 2022  ............................... 28 
Table  2.3 Key features of Japan's RTAs  ................................ ................................ ................. 31 
Table  2.4 Main beneficiaries of GSP scheme, 2020 -21 ................................ ............................ 32 
Table  2.5 Sectoral FDI restrictions, 2022  ................................ ................................ .............. 34 
Table  3.1 Structure of MFN tariffs FY2019 and FY2022  ................................ ............................ 41 
Table  3.2 Japan's tariff summary, FY2022  ................................ ................................ ............. 43 
Table  3.3 Summary analysis of the Japanese preferential tariffs, FY2022  ................................ ..47 
Table  3.4 Goods subject to import licensing under the Import Trade Control Order, 2022  ........... 49 
Table  3.5 Hozei  areas and features  ................................ ................................ ...................... 55 
Table  3.6 NEXI trade insurance pro ducts, 2021 ................................ ................................ ......57 
Table  3.7 Tax revenue, FY2017 -FY2021  ................................ ................................ ................ 58 
Table  3.8 Selected tax incentives, grants, and loan schemes available to both local and 
foreign -affiliated companies, 2021  ................................ ................................ ....................... 59 
Table  3.9 Main laws on standards and technical regulations, September 2022  ........................... 61 
Table  3.10 JISs established, revised, and withdrawn, April 2019 -March 2022  ............................ 63 
Table  3.11 Main SPS legislation, 2022  ................................ ................................ .................. 66 
Table  3.12 Competition enforcement statistics, 2019 -21a ................................ ........................ 70 
Table 3.13 Large state -owned enterprises, FY2021 ................................ ................................ .73 
Table  3.14 Value of government procurement in Japan, 2019 -20 ................................ ............. 75 
Table  3.15 For eign participation in central government and IAA procurement, 2019 -20 .............. 76 
Table  3.16 Awards to foreign suppliers by origin, 2019-20 ................................ ...................... 77 
Table  3.17 Average patent application pendency periods, in months, FY2017 -FY2020  ................. 86 
Table  3.18 Patent applications and patents granted, 2012 -21 ................................ .................. 87 
Table  3.19 UM applications and registrations, 2012 -21 ................................ ........................... 89 
Table  3.20 Design applications and registrations, 2012 -21 ................................ ...................... 91 
Table  3.21 Trademark applications and registrations, 2012 -21 ................................ ................ 92 
Table 4.1 Other funds concerning agriculture, forestry, and fisheries  ................................ ...... 103 
 
BOXES  
 
Box 3.1 Key agencies responsible for SPS measures  ................................ ............................... 65 
Box 3.2 Selected SPS measures notified to the WTO, 2020 -22 ................................ ................. 67 
Box 4.1 Main economic indicators of the financial services sector, 2017 -22 .............................  115 
Box 4.2 Main indicat ors of the banking sector, 2018 and 2021  ................................ ...............  115 
Box 4.3 Main indicators of the insurance sector, 2018 -2021 ................................ ..................  116 
Box 4.4 Main indicators of the pension fund and stock exchange, FY2017/18 and FY2020/21  .... 116 
Box 4.5 Main economic indicators and regulatory features of the telecommunications sector  ..... 119 
 WT/TPR/S/ 438 • Japan  
 
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  APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS section and major HS chapter/subheading, 2017 -21 ..... 124 
Table A1.2 Merchandise imports by HS section and major HS chapter/subheading, 2017 -21 ..... 125 
Table A1.3 Merchandise exports by destination, 2017 -21 ................................ ......................  127 
Table A1.4 M erchandise imports by origin, 2017 -21 ................................ .............................  128 
 
 
Table A3.1 Taxation rates, April 2022  ................................ ................................ .................  129 
Table A3.2 Central government and IAA procurement, by good and by origin, 2019 -20 ............  131 
Table A3.3 Central government and IAA procurement, by service and by origin, 2019 -20 .........  133 
Table A3.4 Summary of laws protecting IPRs, 2022  ................................ ..............................  135 
 
 
Table  A4.1 Special safeguards, FY2019 -FY2021  ................................ ................................ ... 137 
Table  A4.2 Tariff quota fill ratio, FY2020  ................................ ................................ .............  140 
Table  A4.3 Other products for which tariff quotas are applied, 2022  ................................ ....... 141 
Table  A4.4 Imports under the SBS system, FY2017 -FY2021  ................................ ..................  142 
Table  A4.5 Food assistance FY2017 -FY2020  ................................ ................................ ........  143 
Table  A4.6 Payment rates for other cereals, sugar beet, starch potatoes, buckwheat, and 
rapeseed,  2019 and 2021  ................................ ................................ ................................ . 144 
Table  A4.7 Administered prices for calves, FY2022  ................................ ...............................  145 
Table  A4.8 Fisheries subsidies notified in J une 2021 for FY2018 and FY2019  ...........................  146 
 
  WT/TPR/S/ 438 • Japan  
 
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  SUMMARY  
1. Japan's economy is characterized by high development, diversification, and income levels as 
well as by strong mar ket orientation. During the period under review (January 2020 to October 
2022), i ts macro -economic policies continue d to be guided by a bold monetary policy based on 
quantitative and qualitative easing, a flexible fiscal policy, and structural reforms. Rea l GDP growth 
rates remained moderate in most years; in 2021, the growth rate stood at 1.7%.  
2. Against the background of the COVID -19 pandemic, the Government adopted several large 
supplementary budgets in 2020 and 2021, leading to a jump in the overall fiscal deficit to 9.0% of 
GDP in 2020 and 7.6% of GDP in 2021. Japan has the highest ratio of public debt to GDP among 
developed countries, at some 263% of GDP. In addition to the pandemic, population ageing has a 
major impact on Japan's fiscal situation. Japan's population stood at 125.7 million in 2021. Its 
economy faces considerable challenges posed by an ageing and declining population; 28% of the 
population is older than 65 years, compared with an OECD average of 17%.  
3. Inflation rates did not exceed 1%  during the period under review and were negative in 2021. 
However, since then inflation rates picked up, following rising international energy prices and the 
depreciation of the yen, to reach 2.6% in July 2022. Interest rates remained at very low levels d uring 
the review period, reflecting ongoing accommodative financing conditions, and confidence in Japan's 
ability to meet its debt obligations, as it holds a significant stock of external assets.  The Government 
acknowledges that rising global interest rate s could put mounting pressure on the budget and 
deteriorate the credibility of Japan's fiscal management.   
4. Japan maintains a free -floating exchange rate regime. The Bank of Japan may only intervene 
as an agent of the Ministry of Finance in the foreign exch ange market. Japan's real effective 
exchange rate continuously appreciated between 2017 and 2020, but has been depreciating since 
2021. As at 20 October 2022, the yen stood at nearly 150 to the US dollar, its weakest level since 
1998. The principal reason for the yen's recent depreciation is the increasing divergence in monetary 
policies of Japan and the United States, along with the growing expectation that the spread in 
interest rates between the two countries is about to widen. In September 2022, the Ban k of Japan 
intervened for the first time since 2011 with a view to reducing the speed of the depreciation.   
5. With a view to addressing its demographic challenges, Japan has undertaken various reforms 
to increase labour supply, productivity, and wages over the recent years. These labour market 
reforms have successfully raised employment, more than offsetting ageing's impact on the size of 
the labour force.  A pension system reform undertaken in 2021 expanded the coverage of the system 
by including more part -time workers. Other structural reforms aim at increasing Japan's productivity, 
notably by accelerating digitalization, expanding investment, and increasing R&D expenditure.  
6. Japan's balance of payments featured a current account surplus during the period under 
review, although with a declining trend; expressed as a share of GDP, the surplus fell from 4.1% in 
2017 to 2.9% in 2021. The strong surplus in Japan's primary income ba lance was a major contributor 
to this surplus. The surplus in merchandise trade narrowed during the review period, whereas the 
deficit in the services balance widened. Total reserves, excluding gold, stood at around USD 1.36 
trillion in 2021.  
7. Both merchan dise exports and imports grew robustly in 2017 and 2018, but fell in 2019 and 
2020, due to the pandemic, before strongly recovering in 2021 and exceeding pre -pandemic levels. 
The combined value of merchandise exports and imports exceeded the equivalent of 30% of GDP in 
2021, for the first time since 2014. Japan's merchandise trade continues to be dominated by 
manufactures, which make up over 85% of exports and some 60% of imports. Agricultural goods 
make up between 11% and 12% of imports and less than 2% of  exports. Mining products make up 
less than 5% of exports, but up to 30% of imports, largely due to the importance of oil imports. 
Japan's service exports and imports grew continuously between 2017 and 2019, but sharply fell in 
2020 due to the global pande mic, before slightly recovering in 2021. The deficit in Japan's services 
trade widened, from 0.1% of GDP in 2017 to 0.8% of GDP in 2021.  
8. China has retained its position as the largest destination for Japan's merchandise exports since 
2018, with a share of nearly 22% of exports in 2021, followed in importance by the United States WT/TPR/S/ 438 • Japan  
 
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  and the European Union. China suppl ies nearly one quarter of imported goods in most years, followed 
by the European Union and the United States, respectively.  
9. Japan remains one of t he major global sources of foreign investment. The stock of Japanese 
investment abroad grew considerably between 2017 and 2021, when it reached close to USD 2 
trillion. Between 2017 and 2020, the inward stock of FDI grew from USD 257 billion to just under 
USD 389 billion but fell to USD 352 billion in 2021. The United States remains the most important 
source country for foreign investment in Japan, and the most important destination for Japanese 
investment abroad.  
10. Japan's overall economic policy agenda is c entred on sustainable and inclusive growth; under 
the current administration, a stronger emphasis is placed on income distribution. Japan's policy 
objectives also place great emphasis on national and economic security issues. The new Act for the 
Promotion of Ensuring National Security through Integrated Implementation of Economic Measures, 
adopted in May 2022, provides a framework for ensuring a stable supply of key products and 
essential infrastructure services, enhancing development of advanced critical t echnologies, and 
preventing disclosure or divulgence of inventions that might be detrimental to national security 
through patent procedures.  
11. In October 2020, Japan announced its plans to achieve net zero greenhouse gas emissions by 
2050. Moreover, in April  2021, it announced the goal of reducing emissions by 2030 to 46% from 
its 2013 levels. To this end, a long -term strategy under the Paris Agreement was elaborated in 2019 
and revised in 2021 to promote green innovations and finance, and an Environment Inno vation 
Strategy in 2020, with action plans for each technology area. Also in 2020, a new Green Growth 
Strategy was published.  
12. Japan grants at least MFN treatment to all WTO Members with exception to the Russian 
Federation and a few other countries and terr itories. MFN treatment to the Russian Federation was 
suspended on 21 April 2022 following the start of the war in Ukraine. Japan is a signatory to the 
1979 Agreement on Trade in Civil Aircraft, and a party to the plurilateral Agreement on Government 
Procur ement. It is also a signatory to the Information Technology Agreement (ITA), and participated 
in the ITA expansion negotiations. The authorities indicate that the WTO Agreement on Fisheries 
Subsidies is in the ratification process. Japan is a participant i n the Joint Statement Initiatives on e -
commerce, investment facilitation for development, the establishment of a WTO informal working 
group for MSMEs, and services domestic regulation. Japan also supported the Buenos Aires Joint 
Declaration on Trade and Wo men's Economic Empowerment. Since January 2020, Japan has been 
involved in two new WTO dispute settlement cases as a complainant, and in one case as respondent.  
Japan has regularly submitted its notifications to the WTO.  
13. Expanding trade and growth through economic partnerships remains central to Japan's overall 
economic strategy. In particular, Japan considers that tapping into the Asia -Pacific region's growth 
and large markets by creating a global web of economic partnerships is essential to the country's 
economic growth. The major new development over the review period was the entry into force of 
the agreement with the United Kingdom and the Regional Comprehensive Economic Partnership 
Agreement.  Japan has 19 FTAs involving 23 trading partners (counting the  EU as one).   
14. Japan offers preferential tariff treatment to 131 developing economies under its GSP scheme. 
The GSP scheme is revised every 10 years; the last revision took place in March 2021, when the 
scheme was extended until 2031. Imports under Japan's GSP scheme have sharply fallen during the 
past years, most notably due to the graduation of important former beneficiaries. In 2020 and 2021, 
Bangladesh, Cambodia, and Myanmar were the main beneficiaries.  
15. The Foreign Exchange and Foreign Trade Act (FEFTA) and its implementing regulations remain 
the main legal instrument that governs foreign investment in Japan. The FDI framework is liberal, 
with only few sectoral restrictions (e.g. broadcasting, radio, and telecommunications), but a 
screening requirement fo r foreign investment is in place. Prior notification is required for industrial 
sectors in national security, public order, or other specifically designated industries. An amendment 
to the FEFTA , which entered into force in 2020, lowered the screening thre shold from 10% in 
company shares to 1%. The amendment also introduced various exemptions from the prior 
notification required for stock purchases. An exemption from the prior notification filings is available 
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  16. During the review period, there were no changes to the authorities responsible for all customs 
matters including policy formulation and the administration and enforcement of customs legislation; 
there  were no changes in registration requirements for importers, or documents needed for customs 
clearance. In June 2020, a Smart Customs Plan 2020 was issued with a view to promoting 
digitalization of customs procedures  and automation of customs inspection. I n 2021, the Customs 
Act was amended to simplify the procedures and ease the requirements of preserving books and 
documents relating to customs duty by electromagnetic records, and enable importers to pay 
customs duty by credit card.  
17. Japan's MFN applied tar iff structure remains complex. With a total of 272 tariff rates, there 
are 136 different ad valorem rates, 75 different specific rates, 29 different alternate rates, and 24 
different compound rates, as well as some other types of duties (4 differential dut ies and 4 sliding 
duties). In FY2022, Japan's overall simple average MFN applied tariff rate is 6.3% (the same as in 
FY2019); the simple average MFN applied tariff rate for agriculture (WTO definition) is 18.0% (17.9% 
in FY2019), compared with 3.4% for non -agricultural products (3.5% in FY2019). Of all tariff lines, 
92.7% involve ad valorem rates (including duty -free lines, which represent 40.9% of all lines). The 
remaining 7.3% (i.e. 689 lines) are non -ad valorem rates. All the 100 highest tariffs have non -ad 
valorem rates. Japan has bound 98.0% of lines; the overall gap between the simple averages of 
MFN applied and bound rates is around 0.1 percentage point. The percentage of duty -free rates 
under RTAs was around twice as much as that of the MFN tariff. C ustoms duties amounted to 1.2% 
of central government tax revenue in FY2021.  
18. In 2022, Japan imposed an import ban on certain goods from the Russian Federation (e.g. 
machines, alcoholic beverages, and wood). During the review period, no issues were raised a bout 
Japan's import licensing regime by Members in the WTO's Committee on Import Licensing.  
19. Japan is not a frequent user of trade remedies.  It maintain s eight  anti-dumping measures, 
applying to two trading partners. Japan did not apply any safeguard or c ountervailing measures 
during the review period, nor did it initiate any investigations in these areas.   
20. Japan does not levy any export taxes, nor does it maintain any export quotas or operate 
export subsidy programmes. In April 2021, Japan extended a pro hibition, until 2023, on all exports 
to (and imports from) the Democratic People's Republic of Korea. In 2022, Japan imposed export  
prohibitions measures against the Russian Federation and Belarus  in the context of the war in 
Ukraine . 
21. Domestic support to p roduction and trade is offered to foreign and domestic companies 
through grants, tax incentives, and loan schemes. The objective of the support is to encourage wage 
hikes, capital investments, and research and development, as well as to support SMEs and th e 
agriculture and fisheries sectors. In June 2021, Japan notified a list of 53 specific subsidy 
programmes to the WTO's Committee on Subsidies and Countervailing Measures; the list includes 
both old and new schemes with different objectives mainly to suppo rt industry, finance, and 
agriculture, and to strengthen and stimulate the domestic economy.  
22. During the review period, Japan took measures regarding regulations on vehicle safety and 
environmental protection; a few amendments were also made to some of laws  and regulations 
governing labelling requirements concerning, inter alia , food, genetically modified products, 
household goods, and tobacco.  The Food Sanitation Act, amended in 2018, partially entered into 
force in June 2020 and fully entered into force in  June 2021 to, inter alia , increase hygiene control. 
During the review period, some  elements of the Agricultural Chemicals Control Act, amended in 2018 
to enhance the safe use of pesticides, entered into force.  Japan submitted regular TBT and SPS 
notificat ions (including few addendum notifications); In either the TBT Committee or the SPS 
committee, no specific trade concerns were raised by Members regarding TBT or SPS measures 
maintained or planned by Japan.   
23. During the review period, amendments to the Act on Prohibition of Private Monopolization and 
Maintenance of Fair Trade (AMA), which introduced a new leniency system, entered into force in 
several stages. In response to the COVID -19 pandemic, the JFTC took a number of actions related 
to competition polic y; for example, in 2020, it issued a press release stating that necessary and 
temporary coordination between competitors to ensure supply and distribution of related goods and 
services would not violate the AMA. In June 2021, the revised Corporate Governan ce Code, WT/TPR/S/ 438 • Japan  
 
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  implemented by the Tokyo Stock Exchange, entered into force; the Code requires certain listed 
companies to provide an explanation for non -compliance with any principle of the Code.  
24. During the review period, Japan notified a list of four state trad ing enterprises remaining 
operational . State participation continues to be spread over few activities including leaf tobacco, 
rice, wheat, barley, energy, financial services, telecommunications, international airports, and 
railways .  
25. Japan is a party to th e WTO Agreement on Government Procurement. During the review 
period, the basic rules on government procurement remained unchanged. Japan promotes green 
procurement and participation of SMEs in the market. Despite the principle of non -discrimination in 
all procurement activities, foreign companies continue to retain a low share in the public procurement 
market. In response to the COVID -19 outbreak, Japan adopted several policies relating to 
government procurement  to provide flexibility concerning the governm ent procurement process, 
including modification of delivery times and contract amounts, the quick disbursement to 
contractors, and a revision of the reference price for upcoming tenders.   
26. Intellectual Property continues to be of vital importance to the Japanese economy. The Japan 
Patent Office found a strong correlation between patent possession and operating profits on sales 
for SMEs, which account for 99.7% of all businesses in Japan. Alt hough IP revenue, as shown in the 
balance of payments statistics, dropped with the emergence of the COVID -19 pandemic in 2020, it 
recovered in 2021, where it stood at over JPY 5.2 trillion. During the review period, Japan amended 
the Science, Technology, a nd Innovation Basic Law to add "innovation" as a key pillar. The 6th Basic 
Plan, promulgated under the Act, aims for, inter alia , government R&D investments of approximately 
JPY 30 trillion and public and private R&D investment of JPY 120 trillion.  
27. Japan h as a substantial trade deficit in agricultural goods, with imports of USD 74.8 billion 
and exports of USD 9.2 billion in 2021. The main policy developments during the review period 
included revision to the Food, Agriculture and Rural Basic Plan in 2020; th e adoption of the Strategy 
to Realize Export Expansion of Agricultural, Forestry and Fishery and Food Products in 2020, and its 
revision in 2022; and the entry into force of the Act on Facilitating the Export of Agricultural, Forestry 
and Fishery Products and Food in 2020 and its revision in 2022. According to the OECD, Japan 
gradually reduced its support to agriculture during the past 10 years; however, the level of support 
plateaued more recently. The simple average MFN tariff on agricultural products (18 .0%) is higher 
than that on non -agricultural products (3.4%). Japan applies 20 tariff quotas covering 112 tariff 
lines at the HS six -digit level. Fill rates ranged from 6.4% to 100%. During the review period, Japan 
applied either the volume - or price -based  agricultural special safeguards (SSGs) several times to 
out-of-quota imports of a variety of products.  
28. Japan's latest overall strategy on fisheries is defined by the revised Basic Plan for Fisheries, 
which was issued on 25 March 2022; the revised plan al so aims to achieve a set of self -sufficiency 
targets by 2032. In FY2022, the average applied MFN tariff rate on the 546 lines (528 in FY2019) 
(at HS nine -digit level) covering fish and fish products was 6.2% (6.1% in FY2019) and the range 
was between zero and 15% ( same in FY2019). The structure of Japan's subsidy schemes for fisheries 
has remained largely unchanged. On 4  June 2021, Japan adopted a Protocol to Amend the 
International Convention for the Conservation of Atlantic Tuna. Japan withdrew from the G eneral 
Fisheries Commission for the Mediterranean on 31 October 2020.  
29. Mining accounts for a very small share of Japan's economy: 0.1 % of GDP in 2020 and 0.03% 
of employment in 2020. The main policy development in the energy sector during the review period  
included the adoption, in October 2021, of the sixth Strategic Energy Plan (SEP), replacing the 2018 
SEP. The main objectives of the 2021 SEP include to show the path of energy policy towards the 
realization of "2050 Carbon Neutral" announced in October 2 020 and the new greenhouse gas 
emission reduction targets announced in April 2021 (to cut greenhouse gas emissions by 46%). In 
January 2022, the Government introduced an emergency subsidy to mitigate the impact of a sharp 
increase of oil price . In April 20 22, the Act on Special Measures Concerning Promotion of Use of 
Renewable Energy Electricity , which introduced a feed -in premium system,  entered into force.  
30. In 2021, manufactured products accounted for about 85.6% of Japan's total merchandise 
exports and 5 7.9% of imports in value. Although the import content of exports varies across 
manufacturing industries, it remains higher for some top exports, illustrating the role that imports WT/TPR/S/ 438 • Japan  
 
- 12 - 
 
  have been playing for exports in Japan and underpinning the degree of Global  Value Chain 
integration of these industries. The average MFN applied tariff for manufacturing products (HS 25 -
97) remained unchanged at 3.3% in FY2022. Tariff quotas continued to apply to 62 manufactured 
items (at HS nine -digit level), including raw hides  and skins, and leather , silk, and footwear. In 
FY2020, the METI launched a subsidy programme that aimed at helping manufacturing firms to 
invest domestically in building production bases for critical products and materials . In order to secure 
the stable d omestic production of semiconductors in Japan and incentivize such investments, on 1 
March 2022, the Government implemented a new legal instrument that provided grants to advanced 
chip manufacturers under certain conditions.  
31. Japan's financial service sect or is relatively open and has withstood the pandemic shock 
relatively well. No banking services are reserved for domestic suppliers. No regulatory changes have 
taken place during the review period with regard to licensing procedures and requirements for ba nks. 
New regulations for virtual currencies came into effect in May 2020.  In an amendment to the 
Insurance Business Act adopted in March 2022 , the Government announced that it would extend its 
financial support to the Life Insurance Policyholders Protectio n Corporation of Japan by five years, 
until end -2027.  
32. The regulatory regime regarding telecommunications did not undergo any significant changes 
during the review period. A newly established Digital Agency is empowered to develop a priority 
programme on th e formation of a digital society. In relation to telecommunications, the Agency aims 
at advancing developments in IT infrastructure, supporting research and development of 
technologies that are necessary for a digital society, and improving the education o f digital human 
resources. The Act on the Protection of Personal Information was amended in June 2020 and entered 
into force in April 2022.  
33. Regarding maritime services, i n 2020, Japan extended the "roll -over relief system" until the 
end of FY2022: it defer s taxation of capital gains resulting from the sales of old vessels replaced by 
new and environmentally friendly ones. Japan also extended the application of deduced rate of 
registration and licence tax until the end of FY2023, with a view to increasing Ja panese -flagged 
overseas vessels.  
34. The 2020 amendments to the Civil Aeronautics Act established a new registration system for 
unmanned aircraft (drones) with a view to ensuring the safety of drone flights. The 2022 amendment 
to the Airport Act requires that airport managers make airport decarbonatization promotion plans 
and have them authorized by the Minister of Land, Infrastructure, Transport, and Tourism.  During 
the review period, Japan implemented several measures to support the aviation ind ustry, especially 
considering the impact of the COVID 19 pandemic. Japan has bilateral air transport agreements with 
60 trading partners; it currently has "open sky" agreements with 36 trading partners .  
  WT/TPR/S/ 438 • Japan  
 
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 1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Japan's economy is the third largest in the world by nominal GDP in US dollar terms. It is 
characterized by high development, diversification, and income levels as well as by strong market 
orientation. Per capita GD P stood at USD  39,300 in 2021.1 The agricultural sector accounts for only 
about 1.0% of GDP in 2020 (the latest year for which sectoral data were available), while Japan's 
manufacturing sector is highly developed and diversified, with a share of around 20% in GDP 
(Table  1.1). The servic es sector constitutes the backbone of the economy, contributing nearly 70% 
to GDP.  
Table 1.1 Basic economic indicators, 2017 -21 
    2017  2018  2019  2020  2021  
Real GDP (JPY trillion, 2015 price 
(chain -linked))  551.2  554.8  552.8  527.3  536.0  
Current GDP (JPY trillion)  553.1  556.6  558.2  537.2  541.4  
Current GDP (USD billion)  4,930.8  5,040.9  5,120.3  5,031.6  4,932.6  
GDP per capita at current market price (USD)  38,903.3  39,850.5  40,566.2  39,981.4  39,301.1  
GDP by economic activities (2015 real price, chain -linked, % change)  
Agriculture, forestry, and fishing  0.7 -6.5 1.4 .. .. 
Mining  7.9 -1.7 -4.4 .. .. 
Manufacturing  4.1 3.7 -0.9 .. .. 
Construction  2.1 -1.2 -1.8 .. .. 
Electricity, gas and water supply  8.2 2.1 -2.6 .. .. 
Services  .. .. .. .. ..  
Wholesale and retail trade  3.1 -2.4 -1.5 .. ..  
Transport and postal services  3.2 -1.4 -0.7 .. ..  
Accommodation and food service activities  3.0 -1.4 -6.5 .. ..  
Information and communications  0.6 2.4 1.2 .. ..  
Finance and insurance  2.0 0.4 -1.1 .. ..  
Real estate  0.7 0.3 0.8 .. ..  
Professional, scientific and technical 
activities  -0.8 0.6 -0.2 .. .. 
 
Public administration  0.6 0.5 0.7 .. ..  
Education  0.2 0.1 0.3 .. ..  
Human health and social work activities  -0.4 2.7 2.9 .. ..  
Other service activities  0.3 -0.9 0.2 .. .. 
Share of nominal gross value added by economic activities (%)  
Agriculture, forestry, and fishing  1.1 1.1 1.0 1.0 .. 
Mining  0.1 0.1 0.1 0.1 .. 
Manufacturing  20.5 20.7 20.2 19.8 .. 
Construction  5.5 5.4 5.5 5.9 .. 
Electricity, gas and water supply; waste 
management services  2.9 2.9 3.1 3.3 .. 
Services  69.9 69.8 70.1 69.9 ..  
Wholesale and retail trade  13.1 12.8 12.5 12.7 ..  
Transport and postal services  5.3 5.3 5.4 4.4 ..  
Accommodation and food service activities  2.6 2.6 2.5 1.8 ..  
Information and communications  4.9 4.9 4.9 5.1 ..  
Finance and insurance  4.1 4.1 4.1 4.3 ..  
Real estate  11.9 11.8 11.9 12.3 ..  
Professional, scientific and technical 
activities  8.0 8.1 8.4 8.4 .. 
 
Public administration  4.9 5.0 5.0 5.2 ..  
Education  3.5 3.5 3.5 3.6 ..  
Human health and social work activities  7.6 7.7 7.9 8.3 ..  
Other service activities  4.1 4.0 4.1 3.8 .. 
Share of employment by economic activities (%)  
Agriculture, forestry, and fishing  3.4 3.4 3.3 3.2 .. 
Mining  0.05 0.05 0.03 0.03 .. 
Manufacturing  16.1 15.9 15.8 15.7 .. 
Construction  7.6 7.5 7.4 7.4 .. 
Electricity, gas and water supply  0.4 0.4 0.4 0.5 .. 
 
1 Using the Atlas method, per capita GNI is estimated at USD  42,620 in 2021 (World Bank national 
accounts data).  WT/TPR/S/ 438 • Japan  
 
- 14 - 
     2017  2018  2019  2020  2021  
Services  72.4 72.7 73.0 73.7 ..  
Wholesale and retail trade  16.5 16.1 15.7 15.8 ..  
Transport and postal services  5.2 5.1 5.2 5.2 ..  
Accommodation and food service activities  6.0 6.2 6.2 5.9 ..  
Information and communications  3.3 3.3 3.4 3.6 ..  
Finance and insurance  2.6 2.4 2.5 2.5 ..  
Real estate  1.9 2.0 1.9 2.1 ..  
Professional, scientific and technical 
activities  .. .. .. .. .. 
 
Public administration  .. .. .. .. ..  
Education  .. .. .. .. ..  
Human health and social work activities  .. .. .. .. ..  
Other service activities  37.0 37.5 38.1 38.6 .. 
.. Not available.  
Source:  Cabinet Office; and Asian Development Bank (ADB) key indicators.  
1.2.  Since 2013, Japan's policies have been guided by a three -pillar strategy, with a view to 
revitalizing a sluggish economy. This strategy uses a bold monetary policy based on quantitative 
and qualitative easing, a flexible fiscal policy, and structural refor ms. The combined effects of fiscal 
and monetary policy expansion and structural reform were intended to strengthen business 
investment and private consumption, with a view to overcoming the prolonged deflation and 
revitalizing the Japanese economy. However , real GDP growth rates remained moderate in most 
years; in 2021, the growth rate stood at 1.7% (Table  1.2). Japan has the highest ratio of public debt 
to GDP among developed countries, at some 263% of GDP.  
1.3.  Japan's population stood at 125.7  million in 2021 . Its economy faces considerable challenges 
posed by an ageing and declining population; 28% of the population is older than 65 years, compared 
with an OECD average of 17%. At current birth and death rates, the population is shrinking at an 
average of 0.2%  per year. Japan's life expectancy is the highest in the world, at 84.8 years 
(81.8  years for men and 87.7 years for women).2 Historically , Japan also scores well in other 
development and quality of life indicators; it ranks 19th in the United Nations Hum an Development 
Indices.3 
Table 1.2 Selected macroeconomic indicators, 2017 -21 
  2017  2018  2019  2020  2021  
National accounts (% change, unless otherwise indicated)  
GDP real growth rate  1.7 0.6 -0.4 -4.6 1.7 
  Consumption  0.8 0.4 0.1 -3.2 1.5 
  Private consumption  1.1 0.2 -0.5 -5.2 1.3 
  Government consumption  0.1 1.0 1.9 2.3 2.1 
  Gross fixed capital formation  1.6 0.6 0.5 -4.9 -1.4 
  Exports of goods and services  6.6 3.8 -1.5 -11.6 11.8 
  Imports of goods and services  3.3 3.8 1.0 -6.7 5.1 
XGS/GDP (%) (at current market price)  17.6 18.3 17.5 15.6 18.5 
MGS/GDP (%) (at current market price)  16.8 18.3 17.7 15.9 19.0 
Unemployment rate (%)  2.8 2.4 2.4 2.8 2.8 
Prices and interest rates (%, unless otherwise indicated)  
Consumer price (CPI) (average, % change)  0.5 1.0 0.5 -0.02 -0.2 
GDP deflator (% change)  -0.1 0.0 0.6 0.9 -0.9 
Discount rate  0.30 .. .. .. .. 
Six-month London interbank offered rate, 
LIBOR  0.015  0.015  -0.015  -0.028  -0.05 
Deposit rate  0.321  .. .. .. .. 
Lending rate  0.994  .. .. .. .. 
 
2 United Nations , World Population Prospects 2022 . 
3 United Nations Development Programme, Human Development Report 2021/2022 . Viewed at: 
https://hdr.undp.org/system/files/documents/global -report -document/hdr2021 -22pdf_1.pdf . WT/TPR/S/ 438 • Japan  
 
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   2017  2018  2019  2020  2021  
Exchange rates  
JPY/USD (annual average)  112.17  110.42  109.01  106.77  109.75  
NEER based on Unit Labour Costs, Index 
(2010=100)  82.19  81.99  85.60  86.68  82.00  
NEER, Index (2010=100)  84.43  84.67  88.44  90.61  85.17  
REER based on Consumer Price Index, Index 
(2010=100)  75.04  74.39  76.54  77.26  70.63  
REER based on Unit Labour Costs, Index 
(2010=100)  76.51  74.57  75.35  74.44  71.05  
Money and credit (% change)  
Broad money  3.5 2.3 2.1 7.4 2.9 
  Currency in circulation  4.7 3.6 1.3 5.1 3.4 
  Current deposits  7.7 6.2 5.5 15.4 6.3 
  Other deposits  -1.1 -2.2 -2.0 -2.8 -2.5 
Domestic credit to private sector from 
depository corporations  4.0 0.7 3.2 6.1 1.7 
Domestic credit to private sector from all 
financial institutions  5.0 0.4 5.1 6.8 2.5 
General government (% of current GDP)  
Revenue  33.6 34.3 34.2 35.6 35.6 
Expenditure  36.7 36.7 37.3 44.6 43.2 
Overall balance  -3.1 -2.5 -3.0 -9.0 -7.6 
Primary balance  -2.2 -1.7 -2.4 -8.3 -7.1 
Government debt, gross  231.4  232.3  236.3  259.4  263.4  
Saving and investment (% of current GDP)  
National savings (gross)  29.3 29.1 29.3 28.4 28.1 
National investment  25.2 25.6 25.8 25.4 25.2 
External data (% of current GDP, unless otherwise indicated)  
Current account  4.1 3.5 3.4 2.9 2.9 
  Merchandise trade balance  0.9 0.2 0.0 0.5 0.3 
  Merchandise exports  14.0 14.6 13.6 12.5 15.2 
  Merchandise imports  13.1 14.4 13.6 12.0 14.9 
  Services balance  -0.1 -0.2 -0.2 -0.7 -0.8 
Capital account  3.8 3.9 4.1 3.3 3.4 
Financial account  3.9 4.0 4.3 3.9 4.2 
  Direct investment  -0.1 0.0 -0.1 0.0 -0.1 
Merchandise exports (% change in USD)  8.3 6.8 -5.5 -9.3 18.8 
Merchandise imports (% change in USD)  10.3 12.4 -4.3 -13.0 21.4 
Service exports (% change in USD)  6.3 4.0 7.8 -21.8 3.8 
Service imports (% change in USD)  3.6 5.4 7.9 -9.8 5.2 
Terms of trade  116.8  116.2  116.7  118.6  .. 
Total reserves, excluding gold (USD billion)  1,232.2  1,238.9  1,285.0  1,344.3  1,356.2  
  % of GDP  25.0 24.6 25.1 26.7 27.5 
in months of imports of goods and services  16.3 14.7 15.4 18.6 .. 
Gross external debt (JPY trillion, end -period)  406.4  444.7  463.1  499.9  529.8  
  Short -term 292.2  321.4  323.1  354.8  360.9  
  Long-term 108.3  116.6  131.8  131.3  157.0  
  Direct investment: intercompany lending  5.9 6.8 8.2 13.7 11.9 
.. Not available.  
Note:  Annual percentage changes under the national account are based on chain -linked 2015 real figures.  
Source:  Cabinet Office (Japan); Ministry of Finance (Japan); IMF; and World Bank.  
1.2  Recent Economic Developments  
1.2.1   Growth and employment  
1.4.  Growth rates during the review period were marked by the direct impact of the COVI D-19 
pandemic, subsequent supply -chain disruptions, and the resulting global economic slowdown, 
culminating in a negative growth rate of nearly 5% in 2020. In 2019 and 2020, most GDP WT/TPR/S/ 438 • Japan  
 
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 components except for government consumption featured negative growth rat es. At nearly 12%, 
the drop of exports of goods and services in 2020 was particularly marked, but private consumption 
and investment also experienced a strong decline over the previous year, at around 5%. The fall in 
GDP affected all sectors of the economy ; it was stronger in transportation and hospitality -related 
activities.  
1.5.  Since 2021, Japan's economy has been recovering amid continued strong policy support. 
However, this recovery has been hampered and delayed by several renewed pandemic -related states 
of emergency4, other state of emergency -like policy measures to contain the spreading of the virus, 
the appearance of new virus variants, sluggish international growth, and additional market 
turbulence caused by the war in Ukraine, all of which restrained c onsumption and investment in 
different manners. Exports have played a pivotal role in the recovery of Japan's economy.  
1.6.  Unemployment has remained at low levels, reflecting demographic developments and an 
increasingly tight labour market. Despite the labour market disruptions caused by the pandemic, 
average annual unemployment rates never exceeded 2.8% during the review period (with a monthly 
peak of 3.1% in October 2021), partly thanks to government -funded employment retention 
schemes.5 The long -term unempl oyment rate remained particularly low and stood at 0.8% in 
August  2022. Furthermore, despite the headwinds created by an ageing and shrinking population, 
the level of employment had been rising as elderly individuals remained in work longer and more 
women participated in the labour force, both developments resulting from earlier labour market 
reforms.  
1.2.2   Fiscal policy  
1.7.  Between 2017 and 2019, the fiscal deficit of the general government (central government, 
local government, and social expenditure) fluctuated be tween 2.5% and 3.1% of GDP (Table  1.2). 
Against the background of the pandemic, the Government adopted several large supplementary 
budgets in 2020 and 2021, leading to a jump in the overall deficit to 9.0% of GDP in 2020 and 7.6% 
of GDP in 2021. The most r ecent fiscal package, adopted in November 2021, aims at containing the 
COVID -19 pandemic, reinvigorating social and economic activities, creating a virtuous cycle between 
growth and income distribution, and enhancing resilience and security.  
1.8.  In addition to  the pandemic, population ageing has a major impact on Japan's fiscal situation. 
Public social spending more than doubled, from 11% of GDP in 1991 to 25% in 2020. Around 80% 
of this is for pensions, health, and long -term care, one of the highest shares in the OECD. The impact 
of population ageing and mounting pressure from social security spending without corrective action 
are likely to threaten sustainability. Current official projections suggest that health and long -term 
care spending, largely driven by a geing, is on course to rise by 3  percentage points of GDP by 2040 
and social security spending by 2.5  percentage points.6 An additional source of pressure on public 
finance is to meet the targets of reducing greenhouse gas emissions to net zero by 2050.  
1.9.  With major expenditure consisting of social welfare, public works, and defence, the fiscal deficit 
continues to be mainly financed by tax revenue and the issuance of government bonds. As a result 
of large and increasing public deficits, gross debt of the g eneral government climbed from 231% of 
GDP in 2017 to 263% of GDP in 2021. While the short -term threat to fiscal sustainability is limited 
by the current low interest rate environment, it is a crucial task for Japan's policy to secure fiscal 
sustainability  in the longer run, according to the IMF.7 
1.10.   The Government is aware of the challenges  related to fiscal policies. It wants to reinforce  
ongoing efforts to reform government expenditure and revenue and remains committed to achieving 
a primary budget surplus  by 2025.  
 
4 Japan had substantially lower rates of C OVID -19-related infections and deaths than most advanced 
economies , while avoiding strict lockdowns.  
5 OECD (2021), Economic Surveys: Japan 2021 . 
6 OECD (2021),  Economic Surveys: Japan 2021 . 
7 IMF (2022), Japan: Staff Report for the 2022 Article  IV Consultation , IMF Count ry Report  No. 22/99; 
and OECD (2021), Economic Surveys: Japan 2021 . WT/TPR/S/ 438 • Japan  
 
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 1.2.3   Monetary policy, prices, and the exchange rate  
1.11.   During the review period, the Bank of Japan continued its policy of quantitative and qualitative 
monetary easing with yield curve control to achieve the price stability target of 2% in terms of the 
year-on-year rate of change in the consumer price index. Under its yield curve control, the Bank has 
been targeting a short -term interest rate of -0.1% and a long -term interest rate of around 0%.8 
Inflation pressures remained contained during most of the r eview period, and well below the Bank 
of Japan's 2% target. Measured by the CPI, inflation rates did not exceed 1% during the period 
under review and were negative in 2021. However, since then inflation rates picked up, following 
rising international energ y prices and the depreciation of the yen, to achieve 2.6% in July 2022.  
1.12.   Japan maintains a free -floating exchange rate regime. The Bank of Japan may only intervene 
as an agent of the Ministry of Finance in the foreign exchange market.9 On 22  September  2022, the 
Ministry of Finance announced that it intervened with a view to reducing the speed of the 
depreciation10; isolated interventions occurred last in 2011. Between 2017 and 2020, the yen 
continuously appreciated against the US dollar (Table  1.1). After trading at JPY  104 to USD  1 at the 
start of 2021, the yen began to weaken, a trend that accelerated in 2022. As at 20  October  2022, 
the yen stood at nearly 150 to the US dollar , its weakest position since 1998. The principal reason 
for the yen's strong recent depreciation is the increasing divergence in monetary policies of Japan 
and the United  States, along with the growing expectation that the spread in interest rates between 
the two countries is about to widen. Japan's real effective e xchange rate continuously appreciated 
between 2017 and 2020, but has been depreciating since 2021.  
1.13.   Interest rates remained at very low levels during the review period, reflecting ongoing 
accommodative financing conditions, and confidence in Japan's ability  to meet its debt obligations, 
as it holds a significant stock of external assets. As a result, net interest payments on public debt 
were very limited during the review period and never exceeded 1% of GDP. The Government 
acknowledges that rising global int erest rates could put mounting pressure on the budget and 
deteriorate the credibility of Japan's fiscal management.  Foreign reserves stood at around 
USD 1.3 trillion in June 2022.  
1.2.4   Structural reforms and privatization  
1.14.   Since 2013, key structural reforms have  included (i)  stabilizing the size of the labour force by 
boosting the participation of women and older people; (ii)  enhancing Japan's integration into the 
world economy through trade agreements; and (iii)  improving the business climate by upgrading 
corpor ate governance, enhancing labour flexibility and mobility, promoting venture capital 
investment, and improving policies for small and medium -sized enterprises.  
1.15.   With a view to addressing its demographic challenges, Japan has undertaken various reforms 
to increase labour supply, productivity, and wages over the recent years. These labour market 
reforms have successfully raised employment, more than offsetting ageing's impact on the size of 
the labour force.11 A pension system reform undertaken in 2021 expande d the coverage of the 
system by including more part -time workers. Other structural reforms aim at increasing Japan's 
productivity, notably by accelerating digitalization , expanding investment , and increasing R&D 
expenditure. It has been noted, however, tha t productivity growth in the business sector remains 
sluggish, particularly in business services and smaller firms.12 
1.2.5   Balance of payments  
1.16.   Japan's balance of payments featured a current account surplus during the period under 
review, although with a declini ng trend (Tables 1. 2 and 1.3). Expressed as the share of GDP, the 
surplus fell from 4.1% in 2017 to 2.9% in 2021. The strong surplus in Japan's primary income 
balance, fluctuating between USD  185 billion and USD  198 billion during this period, was a major 
 
8 Bank of Japan, Annual Review 2022 . 
9 Bank of Japan. Viewed at: https://www.boj.or.jp/announcements/edu cation/oshiete/intl/g19.htm/ . 
10 Ministry of Finance. Viewed at: 
https://www.mof.go.jp/public_relations/conference/my20220922kyodo.html ; and 
https://www.mof.go.jp/policy/international_policy/reference/feio/data/mo nthly/20220930.html . 
11 OECD (2021) , Economic Surveys: Japan 2021 . 
12 OECD (2021), Economic Surveys: Japan 2021 . WT/TPR/S/ 438 • Japan  
 
- 18 - 
 contributor to this surplus. The surplus in merchandise trade narrowed during the review period, 
whereas the deficit in the services balance widened; both trends contributed to the decrease of the 
current account surplus. The capital account featured a sma ll deficit between 2017 and 2021, while 
the financial account featured a strong surplus, between USD  99.6 billion and USD  227 billion.  
Table 1.3 Balance of payments, 2017 -21 
(USD billion)  
  2017  2018  2019  2020  2021  
Current account  203.2  177.3  176.6  147.0  142.5  
Goods and services balance  37.6  1.4  -8.6  -7.6  -22.5  
  Goods balance  43.8  10.6  1.4  26.6  15.9  
  Exports  688.7  735.6  695.2  630.5  749.1  
  Imports  644.8  725.0  693.8  603.9  733.3  
  Services balance  -6.2  -9.2  -10.0  -34.2  -38.4  
  Receipts  186.8  194.2  209.5  163.8  170.0  
  Payments  193.0  203.4  219.4  198.0  208.4  
  Primary income  184.5  194.1  197.8  178.8  187.2  
  Credit  278.8  303.5  313.5  277.1  285.5  
  Compensation of employees  0.2  0.2  0.2  0.2  0.2  
  Investment income  278.5  303.3  313.2  276.8  285.1  
  Debit  94.3  109.5  115.7  98.3  98.3  
  Compensation of employees  0.3  0.3  0.4  0.4  0.4  
  Investment income  93.4  108.4  114.6  97.2  97.1  
  Secondary income  -18.9  -18.2  -12.6  -24.1  -22.2  
  Credit  20.1  21.8  32.4  31.2  27.5  
  Debit  39.0  40.0  45.0  55.4  49.7  
Capital account  -2.5  -1.9  -3.8  -1.9  -3.8  
Balance on current and capital account  200.7  175.3  172.8  145.1  138.7  
Financial account  167.7  183.0  227.1  126.9  99.6  
  Direct investment  154.9  134.9  218.3  84.5  122.5  
  Net acquisition of financial assets  173.8  160.2  258.3  146.1  149.9  
  Net incurrence of liabilities  18.8  25.3  40.0  61.5  27.3  
  Portfolio investment  -49.2  92.9  86.6  35.9  -196.6  
  Financial derivatives  30.6  1.1  3.4  7.9  22.2  
  Other investment  7.9  -69.8  -106.0  -10.1  88.7  
  Reserve assets  23.6  23.9  24.7  8.6  62.8  
Net errors and omissions  -32.9  7.7  54.3  -18.2  -39.1  
Source:  IMF e -library data.  
1.2.6   Outlook  
1.17.   The recovery of Japan's economy is expected to continue in 2022 and 2023. For 2022, 
GDP growth is projected by the IMF at 1.7% amid continued strong policy support and easing global 
supply constraints.13 The current account surplus is projected to narrow further to 2.4% of GDP 
driven by higher commodity import bills, while headline inflation is projected at 1.9%.14 However, 
uncertainty around the pandemic and the war in Ukraine pose significant downside r isks to the 
Japanese economy through commodity prices, supply -chain disruptions, and financial and trade 
spill-overs. Medium -term risks include labour market rigidities, the delayed exit of unviable firms, 
and debt sustainability concerns. Against the back ground of an ageing and declining population, 
Japan's medium - and long -term real GDP growth potential is estimated at around 0.5% annually.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.18.   Both merchandise exports and imports grew robustly in 2017 and 2018, but fell in 2019 and 
2020, due to the pandemic, before strongly recovering in 2021 and exceeding pre -pandemic levels 
(Tables 1. 2, 1.3, and 1.4). The combined value of merchandise exports and imports exceeded 30% 
 
13 The forecast was revised in the IMF's July 2022 World Economic Outlook, down from 2.4% in 
April 2022. IMF (2022), IMF Country Report No.  22/99.  
14 IMF (2022), IMF Country Report No.  22/99.  WT/TPR/S/ 438 • Japan  
 
- 19 - 
 of GDP in 2021, for the first time since 2014, which demonstrates the importance of international 
trade  to Japan's economy, its degree of openness, the resilience of its external sector, and its 
integration into the world economy and global value chains.  
Table 1.4 Merchandise trade by main SITC Rev.3 classification category, 2017 -21 
    2017  2018  2019  2020  2021  
Exports (USD billion)  698.1  738.2  705.7  641.3  757.1    
(% of total exports)   
Agriculture  1.6 1.6 1.6 1.8 1.9  
Mining (incl. oil)  4.1 4.3 4.4 4.3 4.9  
Manufacturing  86.6 86.8 86.6 86.1 85.6  
Other  7.8 7.2 7.4 7.8 7.7 
Imports (USD billion)   671.9  748.5  721.1  635.4  772.3    
(% of total imports)   
Agriculture  11.8 11.1 11.5 12.1 11.1  
Mining (incl. oil)  27.4 29.8 28.0 23.9 29.4  
Manufacturing  59.1 57.5 58.9 62.2 57.9  
Other  1.7 1.7 1.7 1.8 1.7 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.19.   The overall broad structure of Japan's merchandise trade remained unchanged during the 
period under review: Its merchandise trade continues to be dominated by manufactures, which make 
up over 85% of exports and some 60% of imports (Table  1.4 and Chart  1.1). Using the SITC 
classification, agricu ltural goods make up between 11% and 12% of imports and less than 2% of 
exports. Mining products make up less than 5% of exports, but up to 30% of imports, largely due 
to the importance of oil imports.  
1.20.   At the more disaggregated level, however, trade statis tics by HS section display several trends 
in the product composition of Japan's merchandise trade (Tables A1.1 and A1.2). The share of 
transport equipment in exports has fallen during past years, from 24% in 2017 to less than 20% in 
2021, mainly caused by a relative drop of exports in small motor vehicles. Product categories that 
have experienced an increase in importance include chemicals and products thereof (increasing their 
share from less than 8% in 2017 to nearly 10% in 2021), integrated circuits, pla stics, and machinery 
related to semi -conductors.  
1.21.   On the import side, the shares of most product categories remained relatively stable 
(Table  A1.2 and Chart  1.1). Pharmaceutical products increased their share, whereas the part of 
textiles and transport equi pment fell slightly. Mineral products make up between 20% and 25% of 
merchandise imports; their exact share in total imports fluctuated with international petrol prices.  WT/TPR/S/ 438 • Japan  
 
- 20 - 
 Chart 1.1 Product composition of merchandise trade by main HS section, 2019 and 2021  
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.22.   With regard to the geographical composition of trade, China has confirmed its position as the 
largest destina tion for Japan's merchandise exports since 2018, with a share of nearly 22% of 
exports in 2021 (Table  A1.3 and Chart  1.2). It is followed in importance by the United  States and 
the European  Union. Asian countries other than China absorb roughly 39% of Japa n's exports.  
1.23.   On the import side, China remains by far the largest trading partner for Japan, supplying 
nearly one quarter of imported goods in most years (Table  A1.4 and Chart  1.2). Around 11% of 
merchandise imports originate in the European  Union and the United  States. Asian countries other 
than China are the origin of 31% to 32% of Japan's imports. The share of African countries increased 
during the review period, whereas the importance of the Russian  Federation as import source 
declined.  
Chart 1.[JPN]  Product composition of merchandise trade by main HS section, 2019 and 2021
2019 2021
Total:   USD 705.7 billion Total:  USD 757.1 billion  
Base metals & 
articles thereof
4.8%Live animals & 
products thereof
3.5% Base metals &
articles thereof
5.0% 
Total:   USD 671.9 billionTotal:   USD 772.3 billion Other
15.1%
Source:  WTO Secretariat calculations, based on UN Comtrade database.Other 
20.1%Transport equipment
23.8%
Other
20.8%Transport
equipment
3.9%
Textiles & 
textile articles
5.2%Other
15.1%
Chemicals 
10.1%Transport
equipment
4.6%Transport equipment
19.8%
Plastics & rubber
5.0%
Machinery;
electrical equipment
23.5% Machinery; 
electrical equipment
23.9%
Petroleum & 
mineral products
24.9%Live animals & 
products thereof
3.2%Precision
equipment
4.5%
Textiles &
textile articles
4.3%Exports (f.o.b.)
Imports (c.i.f.)Plastics & rubber
5.4%
Petroleum & 
mineral products
24.7%Chemicals
8.7%Chemicals
9.7%
Chemicals 
9.0%Base metals &
articles thereof
8.9%Base metals & 
articles thereof
7.6%
Precision
equipment
4.1%Precision equipment
5.9%Precision equipment
5.8%
Machinery; 
electrical equipment
34.0% Machinery; 
electrical equipment
35.2% WT/TPR/S/ 438 • Japan  
 
- 21 - 
 Chart 1.2 Direction of merchandise trade by main partners, 2019 and 2021  
 
 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
1.24.   Japan's service exports and imports grew continuously between 2017 and 2019, but sharply  
fell in 2020, before slightly recovering in 2021 (Tables 1.2 and 1.5). In 2021, the main exports in 
services were charges for the use of intellectual property and tran sport; travel dropped significantly 
in 2020. In the same year, main services imports were also charges for the use of intellectual 
property and transport (Tables  1.3 and 1.5). However, the deficit in Japan's services trade widened, 
from 0.1% of GDP in 2017  to 0.8% of GDP in 2021.  
EU-27
11.2%
Australia 
6.3%United States
11.3% Other
20.8%Chart 1.[JPN]  Direction of merchandise traden by main partners, 2019 and 2021
2019 2021
Exports (f.o.b.)
Total:   USD 705.7 billion Total:  USD 757.1 billion
Imports (c.i.f.)
EU-27
11.1%Other
20.3%
Thailand 3.5%United States
10.7%
Total:   USD 671.9 billion Total:   USD 772.3 billionMalaysia 2.5%Saudi Arabia,
Kingdom of 
3.6%
Korea, Rep. of
4.2%Korea, Rep. of  
4.1%United States
19.9% United States
18.0%
Hong Kong, China  
4.7%
Source:  WTO Secretariat calculations, based on UN Comtrade database.China
23.5%Singapore 2.9%EU-27
9.2%
Hong Kong, China  
4.8%Other
22.8%
Thailand 3.4%China
21.6%EU-27
9.7%
Thailand 4.3%
Chinese Taipei
6.1%Thailand 4.4%
China
19.1%Viet Nam 2.3%
Chinese Taipei 
4.3%Singapore 2.6%
Viet Nam 3.1%Korea, Rep. of
6.6%Other
24.4%
Chinese Taipei
7.2%
Chinese Taipei  
3.7%Viet Nam 3.0%Saudi Arabia,
Kingdom of
3.8%
Australia
6.8%Korea, Rep. of
6.9%
China
24.0%Viet Nam 2.5%
Indonesia 2.5%Indonesia 2.5%
Malaysia 2.6%
United Arab
Emirates  3.8%United Arab 
Emirates  
3.7%WT/TPR/S/ 438 • Japan  
 
- 22 - 
 Table 1.5 Trade in services, 2017 -21 
(USD billions and %)  
  2017  2018  2019  2020  2021  
Credit   186.8  194.2   209.5   163.8   170.0   
 (%) 
Manufacturing services on physical inputs 
owned by others, credit  0.4 0.4 0.5 0.9 1.0 
Maintenance and repair services n.i.e., 
credit  0.5 0.5 0.5 0.8 0.7 
Transport, credit  18.3 14.9 12.5 12.7 14.9 
Passenger  1.6 1.6 1.5 0.5 0.3 
Freight  14.5 11.0 8.7 10.0 12.5 
Other (including postal and courier)  2.2 2.2 2.2 2.1 1.9 
Travel, credit  18.2 21.7 22.0 6.5 2.8 
Business travel, credit  1.4 1.8 2.0 0.6 0.1 
Personal travel, credit  16.8 19.9 20.0 5.9 2.7 
Other services, credit  62.6 62.5 64.5 79.1 80.6 
Construction services  5.6 4.7 5.1 4.6 4.9 
Insurance and pension services  1.2 1.2 1.1 1.3 1.3 
Financial services  5.6 5.8 6.8 9.6 8.0 
Charges for the use of intellectual 
property n.i.e.  22.3 23.5 22.5 26.4 28.3 
Telecommunication, computer, and 
information services  2.7 2.5 3.6 6.2 6.1 
Other business services  22.1 21.9 22.3 27.7 28.6 
Personal, cultural, and recreational 
services  0.6 0.3 1.0 0.9 1.1 
Government goods and services n.i.e.  2.6 2.4 2.2 2.4 2.3 
Debit   193.0   203.4   219.4   198.0   208.4  
 (%) 
Manufacturing services on physical inputs 
owned by others, debit  2.8 2.5 1.9 2.7 2.8 
Maintenance and repair services n.i.e., 
debit 2.6 2.7 3.8 3.6 2.7 
Transport, debit  20.8 19.0 15.6 13.9 15.3 
Passenger  3.9 3.9 3.6 0.7 0.2 
Freight  10.7 11.5 10.1 11.3 13.2 
Other (including postal and courier)  6.0 3.5 1.8 1.8 1.8 
Travel, debit  9.4 9.9 9.7 2.8 1.4 
Business travel, debit  1.4 1.7 1.5 0.3 0.0 
Personal travel, debit  8.0 8.2 8.2 2.5 1.3 
Other Services, debit  64.4 65.8 69.0 77.0 77.8 
Construction services  4.3 4.1 3.4 2.8 2.6 
Insurance and pension services  3.3 3.4 3.7 5.3 5.6 
Financial services  4.0 4.0 3.9 5.4 4.8 
Charges for the use of intellectual 
property n.i.e.  11.1 10.8 12.2 14.4 14.2 
Telecommunication, computer, and 
information services  7.4 8.5 10.1 11.4 12.4 
Other business services  32.7 33.7 34.0 36.4 36.2 
Personal, cultural, and recreational 
services  0.6 0.3 0.8 0.5 1.0 
Government goods and services n.i.e.  1.0 1.0 0.9 0.9 1.0 
Source:  Bank of Japan.  
1.3.2   Trends and patterns in FDI  
1.25.   Japan remains one of the major global sources of foreign investment. The stock of Japanese 
investment abroad grew considerably between 2017 and 2021, when it grew to close to USD  2 trillion 
(Tables 1.6 and 1.7). The United  States accounts, by far, for the largest share of Japan's outward 
FDI classified by destinations, representing about one third of Japan's FDI outward stock. The 
United  States is followed by the United  Kingdom, China, and the Netherlands. The share of 
Latin America and Africa in Japan's ou tward investment remains very limited.  
1.26.   Between 2017 and 2020, the inward stock of FDI grew from USD  257 billion to just under 
USD 389 billion, equivalent to some 7.7% of GDP, but fell to USD  352 billion in 2021. The 
United  States remains the most important  source country for foreign investment in Japan, with a WT/TPR/S/ 438 • Japan  
 
- 23 - 
 share of some 23% of all FDI, followed by the United  Kingdom, the Netherlands, and Singapore. The 
vast majority of FDI in Japan originates in North America, Europe, and Asia, whereas Latin America 
and Africa remain of limited importance as an FDI source.  
1.27.   With regard to the sectoral distribution of Japan's investment abroad, financial services are 
the most important sector, followed by manufacturing, and wholesale and retail. Foreign investment 
in Japan  concentrates on manufacturing, financial services, and communications.  
Table 1.6 Inbound and outbound stock of direct investment, by main origin and 
destination, 2017 -21 
  2017  2018  2019  2020  2021  
Inbound stock (USD billion)  256.8  277.9  314.5  388.9  351.8  
  % of GDP  5.2 5.5 6.1 7.7 7.1  
(% of total inbound stock)  
United  States  23.2 20.8 23.3 23.3 22.8 
United  Kingdom  6.2 8.4 7.3 14.5 14.0 
Netherlands  16.6 15.1 11.5 10.6 9.7 
Singapore  8.6 8.4 10.6 10.5 9.2 
France  12.1 12.3 11.5 8.2 7.8 
Hong Kong, China  3.3 3.3 3.6 3.9 6.8 
Switzerland  4.4 5.2 4.6 5.9 4.8 
Cayman Islands  4.7 5.5 4.9 3.5 4.3 
Germany  3.2 3.6 2.8 2.5 3.0 
Korea, Republic of  2.0 2.4 2.3 2.3 2.3 
Chinese  Taipei  2.3 2.4 2.4 2.3 2.2 
China  1.0 1.2 1.7 1.8 2.1 
Luxembourg  3.0 2.7 3.0 2.1 2.0 
Australia  1.2 1.5 1.5 1.0 1.8 
Thailand  0.8 0.8 1.0 1.1 0.9 
Canada  0.6 0.6 0.5 0.5 0.6 
Outbound stock (USD billion)  1,554.7  1,647.5  1,870.5  1,980.4  1,987.2  
  % of GDP  31.5 32.7 36.5 39.4 40.3  
(% of total outbound stock)  
United  States  31.6 30.4 28.6 31.1 33.3 
United  Kingdom  9.9 10.0 9.3 9.1 9.3 
China  7.7 7.5 7.0 7.3 7.4 
Netherlands  8.4 8.2 7.3 7.9 6.9 
Singapore  4.1 4.8 4.7 5.0 5.5 
Australia  4.4 4.1 3.9 4.5 4.2 
Thailand  4.1 4.2 4.2 4.0 3.6 
Switzerland  0.8 0.9 2.8 3.2 2.7 
Germany  1.7 1.7 2.1 2.3 2.5 
Hong Kong, China  2.0 2.0 1.9 1.9 2.1 
Korea, Republic of  2.4 2.4 2.1 2.2 2.0 
Indonesia  2.0 1.9 2.1 1.9 1.8 
India 1.4 1.5 1.5 1.5 1.6 
Luxembourg  1.0 0.8 0.9 1.0 1.5 
Belgium  1.3 1.3 1.4 1.5 1.3 
Viet Nam 1.0 1.0 1.0 1.1 1.2 
Canada  1.1 1.1 1.1 1.2 1.1 
Note:  End-period figures. Figures are based on International Investment Position, net.  
Source:  Japan External Trade Organization (JETRO).  
Table 1.7 Foreign direct investment, 2017 -21 
  2017  2018  2019  2020  2021  
UNCTAD, World Investment Report      
FDI inflows (USD million)  9,355.6  9,962.7  13,755.4  10,702.6  24,652.0  
FDI inward stock (USD million)  202,441.1  204,523.6  223,809.7  232,313.5  256,965.5  
FDI inward stock (% of GDP)  4.1 4.1 4.4 4.6 5.2 
FDI outflows (USD million)  164,587.9  144,982.1  232,627.2  95,666.4  146,782.4  
FDI outward stock (USD million)  1,497,525.0  1,568,765.7  1,780,245.8  1,837,075.4  1,983,857.8  
FDI outward stock (% of GDP)  30.4 31.1 34.8 36.5 40.2 
JETRO       
FDI inflows (USD million)  18,804.7  25,297.1  39,957.9  61,508.9  27,315.4  
FDI inward stock (USD million)  256,780.0  277,924.2  314,522.5  388,929.2  351,845.1  WT/TPR/S/ 438 • Japan  
 
- 24 - 
   2017  2018  2019  2020  2021  
FDI inward stock (% of GDP)  5.2 5.5 6.1 7.7 7.1 
FDI outflows (USD million)  173,768.0  160,266.6  258,275.5  146,040.9  149,814.0  
FDI outward stock (USD million)  1,554,738.0  1,647,480.0  1,870,530.9  1,980,423.3  1,987,168.6  
FDI outward stock (% of GDP)  31.5 32.7 36.5 39.4 40.3 
Source:  UNCTAD, World Investment Report ; and JETRO.WT/TPR/S/ 438 • Japan  
 
- 25 - 
 2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  The Japanese Constitution, which has remained unchanged for over 75 years, sets out the roles 
and responsibilities of the legislature (the Diet1), the executive branch (the Cabinet) , and the 
Judiciary. Bills can be submitted either by Diet Members or by the C abinet, but only the Cabinet can 
submit the national budget or treaties. Bills usually become law on passage by both Houses  of the 
Diet. The Cabinet is responsible for enacting cabinet orders to execute the provisions of the 
Constitution and the law.  
2.2.  Japan 's overall economic policy agenda is centred on sustainable and inclusive growth. Policy 
objectives remain in line with the overall strategy of combined fiscal expansion, monetary easing, 
and structural reforms, but with a stronger emphasis on income distr ibution under the current 
administration.  To this end, an expert panel – the Council for New Form of Capitalism Realization – 
was established to develop specific policy proposals. The broader policies to raise economic growth 
include the promotion of digit al transformation and green investment, support for start -ups, regional 
revitalization through digitalization, and enhancement of economic security.  
2.3.  Japan's policy objectives place great emphasis on national and economic security issues. The 
new Act for th e Promotion of Ensuring National Security through Integrated Implementation of 
Economic Measures (Economic Security Promotion Act), adopted in May 2022, provides for a 
framework for ensuring a stable supply of "key products" and "essential infrastructure s ervices", 
enhancing development of "advanced critical technologies"  (Article 2.2) , and preventing disclosure 
or divulgence of inventions that might be detrimental to national security through patent procedures. 
As at October  2022, implementing regulations were under preparation.2 
2.4.  In October 2020, Japan announced its plans to achieve net zero greenhouse gas emissions by 
2050. Moreover, in April 2021, it announced the goal of reducing emissions by 2030 to 46% from 
its 2013 levels. To this end, a long-term strategy under the Paris Agreement was elaborated in 2019 
and revised in 2021 to promote green innovations and finance, and an Environment Innovation 
Strategy in 2020, with action plans for each technology area. Also in 2020, a new Green Growth 
Strategy was published .  
2.2  Trade Policy Formulation and Objectives  
2.5.  The institutional framework for trade policy -making has remained unchanged since the last 
Review. Overall coordination of trade policies rests with the Cabinet. The Ministry of Economy , Trade 
and Industry (METI) and the Ministry of Foreign Affairs (MOFA) continue to formulate and implement 
trade policy. Several other ministries and government agencies also have responsibilities related to 
trade policy. The mandates of the legislature's various committees include trade (i.e.  committees on 
economy, trade , and industry; financial affairs; forestry and fisheries; and fundamental national 
policies). Ministries and agencies receive inputs from the private sector concerning matters related 
to trade pol icies, through exchanging opinions with private entities and receiving petitions from 
them. Specific trade policy discussions take place at  the Trade Committee, a subordinate body of 
the Industrial Structure Council.  
2.6.  Japan's trade policy objectives and pro gress on their realization are laid out in the METI's 
annual White Papers on International Economy and Trade, which are submitted to Cabinet. Their 
objective is to contribute to the formulation of trade strategies through the analysis of trade -related 
international trends and policies, and to provide the public with the ideas that lay out the basis for 
trade policy and its directions. More detailed trade -related objectives were last laid out in the 2018 
White Paper, but still guide Japan's current policy.  This Paper underlines the importance of 
developing "free, fair and high -level trade rules", with key trading partners and in international fora 
 
1 The Diet consists of two houses : a House of Representatives (Lower House) and a House of Councillors 
(Upper House) . Both sets of parliamentarians are directly elected.  
2 E-GOV. Viewed at: https://elaws.e -
gov.go.jp/document?lawid=504AC0000000043_20230517_000000000000000.  WT/TPR/S/ 438 • Japan  
 
- 26 - 
 (including the WTO), as well as progress in reinforcing economic ties and cooperation with emerging 
economies.3 
2.7.  Against the background of the C OVID -19 pandemic, the 2020 White Paper4 advocates  for a 
coordinated global response to the consequences of the pandemic, the building of more resilient 
supply chains, the acceleration of digitalization and evolution of commu nication in economy and 
society, and the achievement of the Sustainable Development Goals. The 2021 White Paper5 
presents four international trends that trade policies in the C OVID -19 era should be based on, 
namely: (i)  a larger economic role for governme nts; (ii)  strengthened economic security in each 
country; (iii)  increased interest in common values such as the environment and human rights in 
international economic activities; and (iv)  the digitalization of business. The 2022 White Paper6 deals 
with th e impact of the war in Ukraine on the global economy, specifically in terms of food and energy 
supply constraints and soaring prices. It also identifies various other trends and risks, such as a 
slow-down in China's economic growth rates, an increase in gl obal public debts, and rising inflation 
rates.  
2.8.  All laws and regulations are published in the Government Gazette and are made available 
online.7 The main laws and regulations relating to trade, and amendments since January 2020, are 
presented in Table  2.1. Nonetheless, it would appear that not all the decisions by the Cabinet are 
published.  
Table  2.1 Major trade -related laws and regulations, October 2022  
Legislation  Latest 
amendment(s)  
Foreign Exchange and Foreign Trade Act (Law No.  228 of 1949)  2020, 2021, 2022  
Export and Import Transaction Act (Law No.  299 of 1952)  2019, 2021, 2022  
Foreign Exchange Order ( Order No. 260 of 1980)  2018 
Order on Inward Direct Investment ( Order No. 261 of 1980)  2019, 2020, 2022  
Export Trade Control Order (Order No.  378 of 1949)  2020, 2021, 2022  
Import Trade Control Order (Order No.  414 of 1949)  2003 
Economic Security Promotion Act (2022)  2022 
Customs - and tariff -related regulations  
Customs Law (Law No.  61 of 1954)  2022 
Customs Tariff Law (Law No.  54 of 1910)  2022 
Temporary Tariff Measures Law (Law No.  36 of 1960)  2022 
Cabinet Order on Countervailing Duties (Order No.  415 of 1994)  2017 
Cabinet Order on Anti -Dumping Duties (Order No.  416 of 1994)  2017 
Cabinet Order on Emergency Duties (Order No.  417 of 1994)  2009 
Cabinet Order on Retaliatory Duties (Order No.  418 of 1994)  2000 
Cabinet Order on Tariff Quotas (Order No.  153 of 1961)  2022 
Act on the Provision of Information Regarding Origina ting Goods Declared under Economic 
Partnership Agreements (Law No.  112 of 2014)  2016 
Trade promotion  
Trade and Investment Insurance Act (Law No.  67 of 1950)  2022 
Services and energy  
Banking Act (Law No.  59 of 1981)  2021 
Insurance Business Act (Law No. 105 of 1995)  2020, 2022  
Financial Instruments and Exchange Act (Law No.  25 of 1948)  2021 
Telecommunications Business Act (Law No.  86 of 1984)  2020, 2022  
Law Concerning the Measures by Large -Scale Retail Stores for Preservation of the Living 
Environment (Law No.  91 of 1998)  2000 
Civil Aeronautics Act (Law No.  231 of 1952)  2022 
Marine Transportation Act (Law No.  187 of 1949)  2021 
Act on Special Measures Concerning the Handling of Legal Services by Foreign Lawyers 
(Law No. 66 of 1986)  2020 
Certified Public Accountants Act (Law No.  103 of 1948)  2022 
 
3 METI (2018), White Paper on International Economy and Trade 2018 , Part III, Chapter 1. Viewed at: 
https://www.meti.go.jp/english/report/data/wp2018/pdf/3 -1-1.pdf.  
4 METI ( 2020), White Paper on International Economy and Trade 2020 . Viewed at: 
https://www.meti.go.jp/english/report/data/gIT2020maine.html . The original Paper was published on 
7 July 2020 and updated on 8  January  2021.  
5 METI (2021), "Release of the White Paper on International Economy and Trade 2021", 29  June. 
Viewed at: https://www.meti.go.jp/english/press/2021/0629_001.html .  
6 METI, White Paper on International Economy and Trade 2022 (Outline) . Viewed at: 
https://www.meti.go.jp/english/press/2022/pdf/0628_001a.pdf . 
7 Government Gazette. Viewed at: https://kanpou.npb.go.jp/ . Some laws have been unofficially 
translated into English on a s eparate site: http://www.japaneselawtranslation.go.jp/ . WT/TPR/S/ 438 • Japan  
 
- 27 - 
 Legislation  Latest 
amendment(s)  
Certified Tax Accountant Law (Law No.  237 of 1951)  2022 
Electricity Business Act (Law No.  170 of 1964)  2022 
Gas Business Act (Law No.  51 of 1954)  2017 
Oil Stockpiling Act (Law No.  96 of 1975)  2012 
Act on the Quality Control of Gasoline and Other Fuels (Law No.  88 of 1976)  2014 
Standards and technical regulations, SPS  
Industrial Standardization Act (Law No.  185 of 1949)  2018 
Act on Japanese Agricultural Standards (Law No.  175 of 1950)  2022 
Act on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and 
Medical Devices (Law No.  145 of 1960)  2022 
Food Sanitation Act (Law No.  233 of 1947)  2018 
Food Labelling Act (Law No.  70 of 2013)  2022 
Quarantine Act (Law No.  201 of 1951)  2014 
Plant Protection Act (Law No.  151 of 1950)  2022 
Act on Domestic Animal Infectious Diseases Control (Law No.  166 of 1951)  2022 
Building Standard s Act (Law No.  201 of 1950 ) 2018 
Electrical Appliances and Materials Safety Act (Law No.  234 of 1961)  2014 
Consumer Product Safety Act (Law No.  31 of 1973)  2014 
High Pressure Gas Safety Act (Law No.  204 of 1951)  2019 
Act on the Rational Use of Energy (Law No.  49 of 1979)  2018 
Fire Service Law (Law No.  186 of 1948)  2021 
Intellectual property rights  
Patent Act (Law No.  121 of 1959)  2022 
Unfair Competition Prevention Act (Law No.  47 of 1993)  2018 
Utility Model Act (Law No.  123 of 1959)  2022 
Design Act (Law No.  125 of 1959)  2022 
Trademark Act (Law No.  127 of 1959)  2022 
Copyright Act (Law No.  48 of 1970)  2022 
Civil Code (Law No.  89 of 1896)  2022 
Others  
Administrative Procedure Act (Law No.  88 of 1993)  2017 
Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Anti-Monopoly 
Act) (Law No.  54 of 1947)  2019 
Act Against Unjustifiable Premiums and Misleading Representations (Law No.  134 of 1962)  2022 
Source:  Compiled by the WTO Secretariat based on information from the Government Gazette . 
2.9.  The Cabinet Office and ministries are required to evaluate policies before and after 
implementation, and to publish the results of these evaluations. Evaluation reports are published on 
each ministry's website and can also be accessed through the Policy Evaluation Portal Site.8 While 
public comment procedures are not a requirement, the administrative organs do have discretion to 
ask for the opinions of stakeholders and the public.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.10.   Japan grants at least MFN treatment to all WTO Members with e xception to the 
Russian  Federation and a few other countries and territories. MFN treatment to the 
Russian  Federation  was suspended on 21  April 2022 following the start of the war in Ukraine.9 At 
present, other countries or territories to which treatment less favourable than MFN treatment is 
applied are Equatorial Guinea, Eritrea, Lebanon, the Democratic People's Republic of Korea, 
South  Sudan, and Timor -Leste. The withdrawal of MFN treatment to the Russian  Federation  was 
accompanied by various sanctions, both related to exports and imports (Section s 3.1.6 and 3.2.3 ). 
2.11.   Japan is a signatory to the 1979 Agreement on Trade in Civil Aircraft, and a party to the 
plurilateral Agreement on Government Procurement (GPA). It is also a signatory to the Information 
Technology Agreement (ITA), and participated in the ITA expansion negotiations. Japan accepted 
the 2005 Protocol Amending the TRIPS  Agreement  and the Agreement on Trade Facilitation. Japan 
 
8 Ministry of Internal Affairs and Communications. Viewed at: 
https://www.soumu.go.jp/main_sosiki/hyouka/seisaku_n/portal/ . 
9 The legal instrument is "Revocation of Tariff Concessions on Goods Originating in the 
Russian  Federation ". WT/TPR/S/ 438 • Japan  
 
- 28 - 
 is an important donor to various WTO technical assistan ce activities. The authorities indicate that 
the WTO  Agreement  on Fisheries Subsidies is in the ratification process.  
2.12.   Japan is a participant in the Joint Statement Initiatives on e -commerce , investment facilitation 
for development , the establishment of a W TO informal working group for MSMEs , and services 
domestic regulation. Japan also supported the Buenos Aires Joint Declaration on Trade and Women's 
Economic Empowerment.  
2.13.   At the 12th Ministerial Conference in Geneva, Japan underlined that the WTO, in a rapi dly 
changing environment, must respond to the need for rule -making, by launching and conducting 
negotiations in a flexible manner among like -minded Members. Furthermore, it noted that against 
the background of the war in Ukraine, WTO Members should address  the issues of food security and 
supply chains.10 Japan also called upon Members to demonstrate willingness to reach a meaningful 
and effective agreement on fisheries subsidies.  
2.14.   Since January 2020, Japan has been involved in two new dispute settlement case s as a 
complainant, against the Republic of Korea (DS594 : Korea – Measures Affecting Trade in Commercial 
Vessels (second complaint) ) and against China (DS601 : China – Anti-Dumping Measures on 
Stainless Steel Products from Japan ). It has been involved in on e case as respondent over this period 
(DS590 : Japan – Measures Related to the Exportation of Products and Technology to Korea ), and in 
eight cases as a third party.11 
2.15.   Over the review period, Japan submitted numerous notifications under different 
WTO agreements (Table  2.2). 
Table  2.2 Notifications by Japan under WTO  Agreement s, September 2022a 
WTO  Agreement  Description of requirement  Document symbol and date of most 
recent notification  
Agreement on Agricu lture  
Article  18.2 Domestic support (DS:1)  G/AG/N/JPN/254, 07/08/20  
G/AG/N/JPN/259, 13/04/21  
G/AG/N/JPN/276 -277, 12/05/22  
Article  18.3 Domestic support (DS:2)  G/AG/N/JPN/255, 07/08/20  
Article  5.7 Price-based special safeguards (MA:3 and MA:4)  G/AG/N/JPN/244 -246, 08/11/19  
G/AG/N/JPN/248 -249, 09/01/20  
G/AG/N/JPN/250, 10/02/20  
G/AG/N/JPN/256, 21/01/20  
G/AG/N/JPN/257, 02/02/21  
G/AG/N/JPN/258, 09/03/21  
G/AG/N/JPN/265, 01/10/21  
Article  18.2 Tariff quotas (MA:1)  G/AG/N/JPN/247, 08/01/20  
G/AG/N/JPN/262, 27/04/21  
Article  18.2 Tariff quotas (MA:2)  G/AG/N/JPN/253/Rev.1 -263/Rev.1 -
264/Rev.1 -278, 14/06/22  
Articles 5.7 and 18.2  Special safeguard (MA:5)  G/AG/N/JPN/251+Corr.1, 10/06/20; 
23/07/20  
G/AG/N/JPN/260, 26/04/21  
G/AG/N/JPN/74, 28/04/22  
Articles 10 and 18.2  Export subsidies (outlays and quantities) (ES:1)  G/AG/N/JPN/252, 10/06/20  
G/AG/N/JPN/261, 26/04/21  
G/AG/N/JPN/275, 28/04/22  
Articles  10 and 18.2  Volume of food aid in the context of export 
subsidy commitments (ES:3)  G/AG/N/JPN/270 -273, 13/04/22  
Article  16.2 Measures concerning the possible negative 
effects of the reform programme on 
least-developed and net -food-importing 
developing countries (NF:1)  G/AG/N/JPN/266 -269, 13/04/22  
Agreement on Implementation of Article  VI of the GATT  1994 (Anti -Dumping Agreement)  
Article  16.4 – ad hoc Reports under Article  16.4 of the Agreement  G/ADP/N/334, 15/11/19  
G/ADP/N/344, 15/07/20  
G/ADP/N/347, 15/10/20  
G/ADP/N/354, 13/04/21  
G/ADP/N/358, 15/07/21  
G/ADP/N/360, 15/09/21  
G/ADP/N/367, 15/03/22  
 
10 WTO documents WT/MIN(22)/ST/89, 12  June 2022; and WT/MIN(22)/ST/89/Add.1, 22  June 2022.  
11 These new cases are DS595, DS597 -DS598, DS600, and DS602 -605.  WT/TPR/S/ 438 • Japan  
 
- 29 - 
 WTO  Agreement  Description of requirement  Document symbol and date of most 
recent notification  
Article  16.4 – semi Semi-annual report under Article  16.4 of the 
Agreement  G/ADP/N/335/JPN, 10/02/20  
G/ADP/N/342/JPN, 07/09/20  
G/ADP/N/350/JPN , 10/03/21  
G/ADP/N/357/JPN, 07/10/21  
G/ADP/N/364/JPN, 09/03/22  
G/ADP/N/370/JPN, 24/08/22  
State trading  
GATT  1994 Article  XVII:4(a) Understanding on the Interpretation of Article  XVII  
 Notification of products traded by state 
enterprises, state trading activities  G/STR/N/18/JPN, 15/09/20  
G/STR/N/19/JPN, 01/07/22  
Regional trading arrangements  
GATT  1994 Article  XXIV:7(a) Free -Trade Areas  
 Notification of regional trade agreements  S/C/N/1036; WT/REG441/N/1, 
07/01/21  
Agreement on Government Procurement (GPA)  
Article  XVI:4 -5 Statistics for 2016 reported under Article  XVI:4 
of the revised GPA  GPA/STAT(18)/JPN/1, 15/04/20  
GPA/STAT(19)/JPN/1, 07/04/21  
GPA/STAT(20)/JPN/1, 28/04/22  
Annexes 1, 2, and 3 
of Appendix  1 Thresholds  GPA/THR/JPN/2/+Add.1, 12/02/20  
GPA/THR/JPN/3/, 01/02/22  
Article  XIX:1  Proposed modifications  GPA/MOD/JPN/102, 22/11/19  
GPA/MOD/JPN/104, 17/06/21  
Article  XXII:5  Domestic legislation  GPA/LEGIS/JPN/3, 25/01/21  
GPA/LEGIS/JPN/4, 15/04/21  
GPA/LEGIS/JPN/5 -6, 25/08/22  
Agreement on Import Licensing Procedures  
Articles 5.1 to 5.4  Agreement on Import Licensing Procedures – 
Notification under Articles 5.1 to 5.4 of the 
Agreement  G/LIC/N/2/JPN/5, 01/07/22  
Article  7.3 Replies to questionnaire on import licensing 
procedures – Notification under Article 7.3 of the 
Agreement on Import Licensing Procedures  G/LIC/N/3/JPN/19, 14/02/22  
G/LIC/N/3/JPN/20, 06/10/20  
Article  1.4(a)  Publications  G/LIC/N/2/JPN/5, 01/07/22  
Article  8.2(b)  Legal text  G/LIC/N/2/JPN/5, 01/07/22  
Market access  
Article  XXVIII:5  Invocation of paragraph 5 of Article  XXVIII  G/MA/370, 07/07/20  
QR (G/L/59) – 
biennial  Quantitative restrictions  G/MA/QR/N/JPN/5, 05/10/20  
Agreement on Trade Facilitation (TFA)  
Article  22 Notification under Articles  22.1 and 22.2  G/TFA/ N/JPN/5, 27/03/20  
G/TFA/N/JPN/6, 05/05/21  
G/TFA/N/JPN/7, 20/05/22  
 Notification under Articles  1.4, 10.4.3, 10.6.2, 
and 12.2.2  G/TFA/N/JPN/2/Rev.1, 02/06/21  
Agreement on Subsidies and Countervailing Measures (SCM  Agreement)  
Article  32.6 Laws and regulations under Articles 18.5 and 
32.6 of the Agreements  1995 
Article  25.11 – semi Countervailing duty actions taken  G/SCM/N/349/Add.1, 15/11/19  
G/SCM/N/356, 04/05/20  
G/SCM/N/363, 14/10/20  
G/SCM/N/371, 15/04/21  
G/SCM/N/379, 14/10/21  
G/SCM/N/386, 11/04/22  
Article  25.1 – 
Article  XVI:1 of the 
GATT 1994  Subsidies programmes  G/SCM/N/372/JPN, 30/06/21  
Agreement on Rules of Origin  
Bali/Nairobi 
Ministerial Decisions  
Annex  II, para.  4 Notification of preferential rules of origin for 
LDCs G/RO/LDC/N/JPN/1/Rev.1+Corr.1, 
12/07/22, 14/07/22  
Agreement on Safeguards  
Articles  12.5 and 8.2  
 Laws and regulations  G/L/1240/Suppl.2; 
G/SG/N/12/JPN/4/Suppl.2, 07/04/20  
Article  12.5 Results of consultations  G/L/1429; G/SG/268, 28/03/22  
Agreement on the Application of Sanitary and Phytosanitary Measures (SPS  Agreement)  
Article  7, Annex  B Notification of sanitary and phytosanitary 
measures  2019 – 48 notifications  
2020 – 174 notifications  
2021 – 142 notifications  
2022 – 302 notifications  
Agreement on Technical Barriers to Trade (TBT  Agreement)  
Article  15.2 Laws and regulations on the implementation 
and administration of the TBT  Agreement  G/TBT/2, 08/11/1995  
Article  2.10 Urgent technical regulations  G/TBT/N/JPN/ 641, 18/1 1/19 WT/TPR/S/ 438 • Japan  
 
- 30 - 
 WTO  Agreement  Description of requirement  Document symbol and date of most 
recent notification  
G/TBT/N/JPN/ 644, 19/12/19  
G/TBT/N/JPN/ 656, 06/0 3/20 
G/TBT/N/JPN/ 669, 31/0 8/20 
G/TBT/N/JPN/ 679, 20/11/20  
G/TBT/N/JPN/ 686, 26/01/21  
G/TBT/N/JPN/ 693, 13/0 3/21 
G/TBT/N/JPN/ 701, 18/0 6/21 
G/TBT/N/JPN/ 707, 02/0 9/21 
G/TBT/N/JPN/ 717, 10/11/21  
G/TBT/N/JPN/ 725, 20/01/22  
G/TBT/N/JPN/ 730, 08/0 3/22 
G/TBT/N/JPN/741, 28/06/22  
G/TBT/N/JPN/741/Add.1, 04/07/22  
G/TBT/N/JPN/746, 30/08/222  
Article  2.9 Technical regulations  2019 – 5 notifications  
2020 – 50 notifications  
2021 – 46 notifications  
2022 – 30 notifications  
Articles 2.9 and 5.6  Notification with Article  10.6 G/TBT/N/JPN/640, 12/11/19  
G/TBT/N/JPN/646, 06/01/20  
G/TBT/N/JPN/692, 05/03/21  
G/TBT/N/JPN/703, 30/06/21  
G/TBT/N/JPN/744+Rev.1, 27 and 
28/07/22  
Unspecified  Notification with Article  10.6 G/TBT/N/JPN/706+Add.1 -Add.2, 
29/07/21; 01/12/21; 13/12/21  
Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS  Agreement)  
TRIPS, Article  63.2 Laws and regulations  IP/N/1/JPN/45; IP/N/1/JPN/D/10, 
21/02/20  
IP/N/1/JPN/46; IP/N/1/JPN/D/11, 
02/06/20; IP/N/1/JPN/47; 
IP/N/1/JPN/P/18, 02/06/20  
IP/N/1/JPN/48; IP/N/1/JPN/T/12, 
02/06/20  
IP/N/1/JPN/49; IP/N/1/JPN/C/7, 
01/07/20  
IP/N/1/JPN/50+Rev .1; 
IP/N/1/JPN/U/4+Rev.1, 01/10/20; 
31/05/21  
IP/N/1/JPN/51; IP/N/1/JPN/P/19, 
10/12/20  
IP/N/1/JPN/52; IP/N/1/JPN/D/12, 
11/12/20  
IP/N/1/JPN/53; IP/N/1/JPN/T/13, 
17/12/20  
IP/N/1/JPN/54; IP/N/1/JPN/C/8, 
25/02/21  
IP/N/1/JPN/55; IP/N/1/JPN/D/13, 
31/05/21  
IP/N/1/ JPN/56; IP/N/1/JPN/P/20, 
15/07/21  
IP/N/1/JPN/57; IP/N/1/JPN/T/14, 
15/07/21  
IP/N/1/JPN/58; IP/N/1/JPN/D/14, 
06/12/21  
IP/N/1/JPN/59; IP/N/1/JPN/P/21, 
06/12/21  
IP/N/1/JPN/60; IP/N/1/JPN/T/15, 
06/12/21  
IP/N/1/JPN/61; IP/N/1/JPN/C/9, 
03/03/22  
IP/N/1/JPN/62; IP/ N/1/JPN/P/22, 
16/06/22  
IP/N/1/JPN/63; IP/N/1/JPN/T/16, 
16/06/22  
IP/N/1/JPN/64; IP/N/1/JPN/D/15, 
16/06/22  
General Agreement on Trade in Services (GATS)   
 Notification pursuant to Article III:3 of the 
General Agreement on Trade in Services  S/C/N/1046, 22/02/21  WT/TPR/S/ 438 • Japan  
 
- 31 - 
 WTO  Agreement  Description of requirement  Document symbol and date of most 
recent notification  
Regional Trade Agreements  
Article  V:7(a)  Notification of regional trade agreement  S/C/N/1036; WT/REG441/N/1, 
07/01/21  
Enabling Cause  Generalized System of Preferences  WT/COMTD/N/2/Add.17 -Add.18,  
11/06/21; 29/06/22  
a November 2019 -August 2022, or last notification if applicable.  
Source:  Compiled by WTO Secretariat , based on notification documents.  
2.3.2   Regional trade agreements  
2.16.   Expanding trade and growth through economic partnerships remains central to Japan's overall 
econo mic strategy. In particular, Japan considers tapping into the Asia -Pacific region's growth and 
large markets by creating a global web of economic partnerships is essential to the country's 
economic growth. However, no specific goals relating to the conclus ion of regional trade agreements 
were set during the period under review; this was last done in the 2018 White Paper.  
2.17.   Japan participates in several regional trade agreements (Table  2.3). It has RTAs in force with 
Australia , Brunei  Darussalam,  Chile, the E uropean  Union, India, Indonesia , Malaysia , Mexico , 
Mongolia , Peru, the Philippines , Singapore , Switzerland , Thailand , the United  Kingdom,  Viet Nam,  
ASEAN member economies , and participants in the Comprehensive and Progressive Agreement for 
Trans -Pacific Partnership (CPTPP). The transition or implementation period under most RTAs is 
15 years; however, under the agreement s with the E uropean  Union, the U nited Kingdom,  and the 
CPTPP , it is 21 years . 
2.18.   The major new development over the review period was the entry into force of the agreement 
with the U nited Kingdom  and the Regional Comprehensive Economic Partnership Agreement (RCEP). 
All of Japan's RTAs have been notified to the WT O. Its agreements have been considered in the 
WTO Committee on Regional Trade Agreements (CRTA) based upon factual presentations prepared 
by the WTO Secretariat , with the exception s of the agreement with the U nited Kingdom , for which 
the factual presentati on is currently being prepared, and the RCEP.  
Table  2.3 Key features of Japan's RTAs  
Title 
(Entry into force)  Goods liberalization  Selected 
coveragea Share in Japan's 
merchandise trade 
(2021)  
RCEP 
(01/01/2022 ) End transition period 2036  S, GP, CP, 
e-com 50.0% total imports  
46.0% total exports  
UK-Japan EPA  
(01/01/2021 ) End transition period 2038 ; 343 tariff lines 
will remain dutiable (3.7% of total)  S, GP, CP, E, 
L, e-com 0.9% total imports  
1.4% total exports  
EU-Japan EPA  
(01/02/2019 ) End transition period 2038 ; 532 tariff lines 
will remain dutiable (6% of total)  S, GP, CP, E, 
L, e-com 11.1% total imports  
9.2% total exports  
CPTPP 
(30/12/2018 ) End transition period 2038 ; 459 tariff lines 
will remain dutiable (5% of total)  S, GP, CP, E, 
L, e-com 18.0% total imports  
12.5% total exports  
Mongolia -Japan EPA  
(07/06/2016 ) End transition period 2031 ; 1,115 tariff 
lines will remain dutiable (12.3% of total)  S, GP, CP, 
e-com 0.005% total imports  
0.1% total exports  
Australia -Japan EPA  
(15/01/2015 ) End transition period 2029; 868 tariff lines 
will remain dutiable (9.5% of total)  S, GP, CP, 
e-com 6.8% total imports  
2.0% total exports  
Peru-Japan EPA  
(01/03/2012 ) End transition period 2027; 892 tariff lines 
will remain dutiable (10.1% of total)  S, GP, CP  0.4% total imports  
0.1% total exports  
India-Japan EPA  
(01/08/2011 ) End transition period 2026; 986 tariff lines 
will remain dutiable (11.1% of total)  S, GP, CP  0.8% total imports  
1.7% total exports  
Viet Nam-Japan EPA  
(01/10/2009 ) End transition period 2024; 946 tariff lines 
will remain dutiable (10.7% of total)  S, GP, CP  3.0% total imports  
2.5% total exports  
Switzerland -Japan EPA  
(01/09/2009 ) End transition period 2024; 987 tariff lines 
will remain dutiable (11.2% of total)  S, GP, CP, 
e-com 1.1% total imports  
0.6% total exports  
Philippines -Japan EPA  
(11/12/2008 ) End transition period 2023; 814 tariff lines 
will remain dutiable (9.1% of total)  S, GP, CP  1.4% total imports  
1.5% total exports  
ASEAN -Japan EPA  
(01/12/2008 ) End transition period 2023 ; 1,225 tariff 
lines will remain dutiable (13.5% of total)   S 14.7% total imports  
15.0% tota l exports  
Brunei  Darussalam -
Japan EPA  
(31/07/2008 ) End transition period 2023; 1,125 tariff 
lines will remain dutiable (12.6% of total)  S, GP, E  0.3% total imports  
0.03% total exports  WT/TPR/S/ 438 • Japan  
 
- 32 - 
 Title 
(Entry into force)  Goods liberalization  Selected 
coveragea Share in Japan's 
merchandise trade 
(2021)  
Indonesia -Japan EPA  
(01/07/2008 ) End transition period 2023; 962 tariff lines 
will remain dutiable (10.8% of total)  S, GP, CP  2.5% total imports  
1.8% total exports  
Thailand -Japan EPA  
(01/11/2007 ) End transition period 2022; 870 tariff lines 
will remain dutiable (9.8% of total)  S, GP, CP  3.4% total imports  
4.4% total exports  
Chile-Japan EPA  
(03/09/2007 ) End transition period 2022; 981 tariff lines 
will remain dutiable (11% of total)  S, GP, CPb 1.0% total imports  
0.2% total exports  
Malaysia -Japan EPA  
(13/07/2006 ) End transition period 2021; 882 tariff lines 
will remain dutiable (9.9% of total)  S, CP,  2.6% total imports  
2.1% total exports  
Mexico -Japan EPA  
(01/04/2005 ) End transition period 2015 ; 1,180 tariff 
lines will remain dutiable (13% of total)  S, GP, CP  0.7% total imports  
1.4% total exports  
Singapore -Japan EPA  
(30/11/2002 ) End transition period 2022 ; 1,281 tariff 
lines will remain dutiable (14% of total)  S, GP, CP  1.1% total imports  
2.6% total exports  
a Services (S); government procurement (GP); competition policy (CP); environment (E); labour (L) ; 
e-commerce (e -com).  
b Under the Chile -Japan EPA, a joint statement issued upon signature of the Agreement includes 
attachments on environment and labour.  
Source:  Compiled by the WTO Secretariat based on UN Comtrade data . 
2.3.3   Unilat eral preferences  
2.19.   Japan offers preferential tariff treatment to 131 developing economies under its GSP scheme. 
Under Japan's regulations, 45 economies receive special treatment as least-developed countries 
(LDCs). The GSP scheme itself is revised every 10 years; the last revision took place in March 2021, 
when the scheme was extended until 2031. In June 2021 , Japan notified the WTO that it had decided 
to extend its GSP scheme until March 2031.12 
2.20.   Under the GSP scheme, preferential tariff rates apply to 424 ta riff lines at the nine -digit level 
in Chapters 1 to 24 (agriculture and fisheries) (excluding in -quota rates), and to 3,291 tariff lines in 
Chapters 25 to 97 (industrial products). The main exclusions are rice and rice products, meat and 
meat products, fis h, dairy products, pineapples, cereal products, textiles and clothing, leather and 
leather products, and footwear. Preferential margins vary from one product to another. LDCs qualify 
for more extensive product coverage (98% of tariff lines) and duty -free a nd quota -free treatment. 
Product coverage under the general GSP and LDC schemes can be reviewed annually as part of the 
annual tariff revision.  
2.21.   GSP graduation rules were last revised in 2017.13 Graduation criteria include income 
classification by the World  Bank, the beneficiary's total exports, and the value of Japan's imports 
from the beneficiary country. Since the last Review , Palau and Panama graduated in April 2021 and 
April 2022 , respectively.  
2.22.   Imports under Japan's GSP scheme have sharply fallen during  the past years, most notably 
due to the graduation of important former beneficiaries such as Brazil, China, Malaysia, Mexico, and 
Thailand in 2019. Around 0.6% of total imports in 2021 entered under GSP benefits from developing 
countries and LDCs. In 2020  and 2021, Bangladesh, Cambodia, and Myanmar  were the main 
beneficiaries of the Scheme (Table  2.4). 
Table  2.4 Main beneficiaries of GSP scheme, 2020 -21 
Country/territory  Imports under GSP 2020  Country/territory  Imports under GSP 
2021  
 JPY million  Share (%)   JPY million  Share (%)  
Total  459,401  100.0  Total  468,336  100.0  
Cambodia  127,850  27.8 Bangladesh  138,766  29.6 
Bangladesh  122,247  26.6 Cambodia  136,464  29.1 
Myanmar  110,909  24.1 Myanmar  82,180  17.5 
Ecuador  12,983  2.8 South Africa  15,948  3.4 
South  Africa  12,337  2.7 Madagascar  14,574  3.1 
Mauritania  11,581  2.5 Ecuador  12,999  2.8 
 
12 WTO document WT/COMTD/N/2/Add.17, 11  June 2021.  
13 WTO document WT/TPR/S/397 /Rev.1 , 6 November  2020.  WT/TPR/S/ 438 • Japan  
 
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 Country/territory  Imports under GSP 2020  Country/territory  Imports under GSP 
2021  
Madagascar  8,699  1.9 Mauritania  9,829  2.1 
Türkiye  7,692  1.7 Türkiye  8,188  1.7 
Morocco  6,899  1.5 Colombia  6,823  1.5 
Colombia  5,830  1.3 Sri Lanka  6,331  1.4 
Lao PDR  5,574  1.2 Morocco  5,054  1.1 
Sri Lanka  5,127  1.1 Lao PDR  4,506  1.0 
Iran, Islamic Rep. of  2,199  0.5 Iran, Islamic Rep. of  3,001  0.6 
Source:  Information provided by the authorities ; and  Japan Customs. Viewed at: 
http://www.customs.go.jp/kyotsu/import/tokkei/index.htm . 
2.3.4   Other arrangements  
2.23.   Japan is member of the Asia -Pacific Economic Cooperation ( APEC), which accounted for 75.3% 
of its merchandise trade (imports and exports) in 2021. One of APEC's objectives was to achieve 
free and open trade and investment by 2020. APEC's Aotearoa Plan of Action adopted in 2021 sets 
out collective and  country -specific objectives for an open, dynamic, resilient , and peaceful 
Asia-Pacific community by 2040, around three main drivers, namely : (i) trade and investment ; 
(ii) innovation and digitali zation; and (iii)  strong, balanced, secure, sustainable , and inclusive 
growth. With regard to trade, the Plan provides for the objective of a free, open, fair, 
non-discriminatory, transparent , and predictable trade and investment environment, and support 
for agreed -upon rules of the WTO.  
2.4  Investment Regime  
2.4.1   Investment framework  
2.24.   Various legal instruments govern investment in Japan: the Foreign Exchange and Foreign 
Trade Act (FEFTA) and its implementing regulations (the Cabinet Order on Inward Direct Investment , 
the Order on Inward Direct Investment , and the Fo reign Exchange Order) , and the Act for Promotion 
of Japan as an Asian Business Center.  
2.25.   The Office of Invest Japan, under the Cabinet Office, is responsible for providing information 
on investment and related matters, and dealing with any investment -related  complaints. It has four 
committees: the Council for Promotion of Foreign Direct Investment, the Task Force for Promotion 
of Foreign Direct Investment in Japan, the Working Group for Revising Regulations and 
Administrative Procedures, and the Working Group  for Examining Medium and Long -term Strategy 
for Promoting Foreign Direct Investment. Since the previous Review, the Council for Promotion of 
Foreign Direct Investment adopted the Strategy for Promoting Foreign Direct Investment in Japan 
in June 2021.  
2.26.   Under the FEFTA, foreign investment can be subject to prior notification or post -closing 
reporting requirements to the Government. Prior notification is required for industrial sectors in 
national security, public order, or other specifically designated indust ries. These industries include 
weapons, aircrafts, nuclear facilities, space technology, dual -use technologies, and parts of the 
cybersecurity, electricity, gas, telecommunications, water supply, railway, and oil  sectors . Direct 
investment not subject to p rior notification is subject to post -closing report requirements, which are 
subject to a simplified procedure under which investors are required to submit a report to the Bank 
of Japan  within 45 days.  
2.27.   The FEFTA was amended in November 2019; the amendment e ntered into force in June 2020. 
These amendments mostly relate to addressing growing concerns about national security, the 
leakage of critical technology, and security of supply in goods considered critical.  
2.28.   Under the amendment, a foreign investor seeking a 1% share in businesses with importance 
to national security, public safety, infrastructure, or Japan's economy is required to undergo a prior 
notification and approval  process. The previous version of the FEFTA required such prior notification 
and approv al only if foreign investors sought a 10% share in a company.14 Implementing regulations 
 
14 Ministry of Finance, Amendment Bill of the Foreign Exchange and Foreign Trade Act . Viewed at: 
https://www.mof.go.jp/english/policy/international_policy/fdi/20191021.html . WT/TPR/S/ 438 • Japan  
 
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 on this amendment were adopted in May 2020; they entered into force in June 2020. The authorities 
indicate that 2,171 requests were submitted in 2020 and 2,859 in 2021 , and that none were denied.  
2.29.   The amendment also introduced various exemptions from the prior notification required for 
stock purchases. An exemption from the prior notification filings is available for foreign financial 
institutions and accredited general investors, including sovereign wealth funds. Exemptions are 
subject to three conditions: (i)  the foreign investor and its closely related persons will not serve on 
the board of the target company as directors or audit and supervisory board members; (ii)  the 
foreign investor will not make proposals at shareholders' meetings, whether directly or through third 
parties, to dispose of material businesses in designated industries; and (iii)  the foreign investor will 
not access sensitive confidential technologies that are related to the target company's designated 
business.  
2.30.   Other related policy changes include the addition of some business sectors to the list of 
designated business sectors subject to approval: cybersecurity -related businesses in May 2019 (fully 
entered into force in August  2019), pharmaceuticals for specific infectious diseases and of specially 
controlled medical devices in June 2020, and mining activities related to 34 rare -earth metals 
(including lithium and cobalt) to secure a stable supply of cr itical minerals in October 2021.  
2.31.   FDI is generally restricted in sectors such as broadcasting, radio, and telecommunication s 
(Table  2.5). In broadcasting and radio, investment is reserved for Japanese nationals.  
Table  2.5 Sectoral FDI restrictions, 2022  
Sector  Description of restriction  Legislative 
basis  
Broadcasting  Basic broadcasting operations may not be provided by, inter alia, a 
person who does not have Japanese nationality, a foreign government 
or its representative, or a foreign corporation or organization.  Broadcasting Act  
Radio Act  
Radio  Radio station licences may not be granted to: (i) a person who does 
not have Japanese nationality; (ii) a foreign government or its 
repres entative; (iii) a foreign corporation or organization; or (iv) a 
corporation or organization that is represented by (a) any person listed 
in the preceding items, or (b) one third or more officers who are those 
persons, or (c) one third or more voting right s of which are made up of 
the aggregate of voting rights held by those persons. These FDI 
restrictions do not apply to: experimental radio stations; amateur radio 
stations; radio stations on board ships and aircraft; radio stations 
transmitting radio commu nications between specific fixed points for 
embassies/consulates etc.; radio stations established for the purpose 
of communicating with mobile radio stations or receiving equipment for 
portable use; radio stations established to conduct telecommunications 
services; and radio stations established for the purpose of controlling 
the position, etc. of an artificial satellite equipped with radio equipment 
of a radio station for the purpose of conducting telecommunications 
services.  Radio Act  
Telecommunications  Less than aggregate one third of the shares in Nippon Telegraph and 
Telephone Corporation may be directly held by the aggregate of 
(i) persons without Japanese nationality; (ii)  a foreign government or 
its representatives; (iii)  foreign juridical persons o r entities; and 
(iv) juridical persons/entities whose voting rights are directly held by 
those persons/entities listed in (i)  to (iii)  and which exceed the 
prescribed ratio.  Act on Nippon 
Telegraph and 
Telephone 
Corporation  
Source:  Information provided by  the authorities.  
2.32.   On 8 April 2022, the Government announced the prohibition of new Japanese investment in 
the Russian  Federation , in line with measures taken by other G7 nations.15 
2.33.   Japan has bilateral investment treaties with 34 countries and territories.16 In addition, 
virtually all regional trade agreements concluded by Japan contain certain provisions on 
 
15 Foreign Exchange and Foreign Trade Act, Article  21; and Fore ign Exchange Act, Article  11. 
16 Armenia; Bangladesh; Cambodia; China; Colombia; C ôte d'Ivoire; Egypt; Georgia; Hong Kong, China; 
Iran, Islamic Rep. of; Iraq; Israel; Jordan; Kazakhstan; Kenya; Korea, Rep. of; Kuwait, State of; Lao People's 
Democratic Repub lic; Morocco; Mozambique; Myanmar; Oman; Pakistan; Papua New Guinea; Peru; 
Russian  Federation ; Saudi Arabia, Kingdom of; Sri  Lanka ; Türkiye; Ukraine; United Arab Emirates; Uruguay; 
Uzbekistan; and Viet  Nam. WT/TPR/S/ 438 • Japan  
 
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 investment.17 Japan has also concluded a Trilateral Investment Agreement with China and the 
Republic of Korea. Japan is party to several investment -related international agreements.18 
2.34.   As at October 2022, Japan had concluded 84 tax conventions applicable to 150 jurisdic tions, 
including those participating in the Convention on Mutual Administrative Assistance in Tax Matters. 
Since the previous Review, Japan has signed eight tax conventions  (with Argentina, Uruguay, Peru, 
Jamaica, Uzbekistan, Morocco, Serbia, and Georgia ) and one amending protocol to the existing 
convention with Switzerland.19 
2.4.2   Business environment  
2.35.   Maintaining an attractive business environment for both foreign and domestic investment is 
an important objective in Japan's economic policy. In 2021, the Council  for Promotion of Foreign 
Direct Investment adopted the Strategy for Promoting Foreign Direct Investment in Japan. Using 
Japan's FDI stock as a key performance indicator, the Council set the target to double the inward 
FDI stock to JPY  80 trillion  by 2030 and reach 12% of GDP, with a 2025 interim target of 
JPY 60 trillion  with its ratio to GDP at 10%.20 The Strategy has three basic pillars: ( i) creation of a 
new digital green market and building an innovation ecosystem; ( ii) acceleration of the development 
of business environment s in response to global environment changes; and ( iii) development of 
investment environment through public-private partnerships utilizing regional strengths.  
2.36.   In addition, the Strategy sets out three fu rther indicators. The first is value added created by 
foreign -affiliated companies, which it targets to double from JPY  17 trillion  in 2018 to JPY  34 trillion  
by 2030. The second indicator is the number of foreign -affiliated companies by prefecture. With a  
view to expanding outside metropolitan areas, a target for the number of foreign -affiliated 
companies in prefectures other than Tokyo has been set at 10,000 by 2026. In 2016, about 43% of 
foreign -affiliated companies were concentrated in Tokyo. The number  of highly skilled foreigners 
entering Japan is the third indicator. The objective is to achieve the entry of 200,000 foreign business 
management personnel by 2030.  
2.37.   Since the previous Review, the following new investment -related promotion policies and 
strategies have been adopted: the Strategy for Promoting Foreign Direct Investment in Japan 
(2 June 2021), and the Main Policy Agenda for Promoting Foreign Direct Investment in Japan 
(20 April 2022).  
2.38.   The 2012 Act for Promotion of Japan as an Asian Business Center remained unchanged during 
the review period. Under this Act, various incentives are provided to encourage investment in 
establishing R&D and regional headquarters. This Act provides the following incentives to enterprises 
that acquired certification fr om the competent minister and newly engage in research and 
development or supervisory business in Japan: accelerated procedures under the F EFTA, shortened 
examination of patent and residency applications, and assistance for fund raising. Other investment 
incentives are (i) assistance for fundraising by the Small and Medium Business Investment and 
Consultation Co. Ltd., applicable to SMEs (this also covers small and medium -sized stock companies 
with capital not less than JPY  300 million ); (ii) acceleration o f patent examinations; (iii) shortened 
investment procedures; and (iv) acceleration of the status of residency examinations.  
2.39.   In the World Economic Forum's 2019 Global Competitiveness report, Japan ranked 6th, a slight 
decline from the previous year, when i t was ranked 5th.21 Its strongest performances are in the areas 
of digital infrastructure, health , and physical infrastructure, whereas it scores less well in areas such 
 
17 These are EU -Japan EPA (investment liberalizati on provisions only); CPTPP; Japan -Mongolia EPA; 
Australia -Japan EPA; Japan -Peru EPA; India -Japan EPA; Japan -Switzerland EPA; Japan -Philippines EPA; 
Indonesia -Japan EPA; Brunei  Darussalam -Japan EPA; Japan -Thailand EPA; Chile -Japan EPA; Japan -Malaysia 
EPA; J apan-Mexico EPA; and Japan -Singapore EPA.  
18 These are Multilateral Investment Guarantee Agency Convention; International Centre for Settlement 
of Investment Disputes Convention; New York Convention; OECD Invisible Operations; OECD Capital 
Movements; and t he Energy Charter Treaty.  
19 The conventions with Uzbekistan and Georgia are new agreements, replacing the existing 
conventions.  
20 JETRO, JETRO Invest Japan Report 2021 . Viewed at: 
https://www.jetro.go.jp/en/invest/investment_environment/ijre/report2021/ch2/sec1.html . 
21 World Economic Forum (2019), The Global Competitiveness Report 2019 . Viewed at: 
https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf . WT/TPR/S/ 438 • Japan  
 
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 as institutions , corporate governance , and skills. In Transparency International's Cor ruption 
Perception Index, Japan ranked 18th of 180 countries and territories in 2021.22 
2.40.   As reported in the 2017 TPR of Japan, various regulatory reform pilot schemes were launched 
under the National Strategic Special Zone initiative, established in 2013.23 Under this initiative, 
regulatory reforms proposed by the private sector, and agreed with local and central governments, 
are tested within a "sandbox" environment, before being implemented country -wide. Ten zones, 
located in different regions of Ja pan, were designated, each of which is focused on encouraging 
specific activities in certain spheres, through regulatory reform. Sectors covered by this initiative 
include medical care, big data, tourism, and agricultural reform. In May 2020, the Act was a mended 
with a view to realizing the "Super City" initiative, where artificial intelligence, big data, and other 
advanced technologies are utilized to improve city development in areas such as autonomous 
driving, cashless payments,  and telemedicine. As at 2 022, 10 national strategic special zones were 
in place, with more than 400 individual projects.  
2.41.   Japan has adopted further key measures and structural reforms to improve the business 
environment since its last Review . In 2020, pension laws were revised to e xpand the eligibility for 
employee insurance for part -time workers, starting from 2022.  Also in 2020,  legislation was revised 
to promote prolonging or abolishing compulsory retirement ages in firms. A work -style reform was 
enacted in 2018 to introduce a ca p on overtime hours, establish rules on equal pay to address wage 
disparities between regular and non -regular workers in the same company, and introduce 
exemptions from work -hours restrictions for high -level professionals . 
 
22 Transparency International, Corruption Perceptions Index . Viewed at: 
https://www.transparency.org/en/cpi/2021 . 
23 WTO document WT/TPR/S/351/Rev.1, 20  June 2017.  WT/TPR/S/ 438 • Japan  
 
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 3  TRADE POLICIES  AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  During the review period, there were no changes to the authorities responsible for all customs 
matters including policy formulation and the admini stration and enforcement of customs legislation.1 
3.2.  The main legislation covering customs procedures and documentation remains the Customs 
Act and its implementing regulations and orders.2 While there were some amendments to the Act 
during the review period, the system of customs procedures, trade facilitation, and customs 
valuation remained largely unchanged (including institutional changes, legislative, and regulatory 
evolution). In June 2020, the Customs  and Tariff Bureau of the Ministry of Finance (MOF) issued a 
Smart Customs Plan 2020 with a view to promoting digitalization of customs procedures, supports 
for regional trade agreement (RTA) users to enhance their convenience , and automat ion of customs 
inspection.3 Furthermore, in 2021, the Act was amended to simplify the procedures and ease the 
requirements  of preserving books and documents relating to customs duty by electromagnetic 
records, and enable importers to pay customs duty by c redit card.  
3.3.  Concerning measures related to the Agreement on Trade Facilitation (TFA), which Japan 
accepted in 2015, the Liaison Conference on Trade Facilitation remains as a forum for information 
sharing, and various enquiry points as stipulated in Article  1.3 of the TFA.4 Since the previous 
Review, there have been no updates of Japan Customs' time release study.5 
3.4.  During the review period, there were no changes in registration requirements for importers, or 
documents needed for customs clearance.6 There are no fees required by Japan Customs for an 
import declaration; Customs charges fees for certain services such as issuing certificates or magnetic 
tapes and granting permits for goods examination outside of designated areas for both domestically 
produced and imported goods (Customs Act, Articles 69 and 100(iii)).7 
3.5.  The Nippon Automated Cargo and Port Consolidated System (NACCS), Japan's single electronic 
window, continues to provide online processing of procedures with Japan Customs and other related 
agenc ies. Although submission of customs declarations through the NACCS is not compulsory, in 
2021, around 99.9% of the value of import/export cargo was processed through it. Importers may 
pay the assessed customs duty through a multi -payment network (MPN).8 The NACCS connects 
 
1 Japan Customs, under the MOF, is responsible for all customs matters including the administration and 
the enforcement of customs l egislation. Japan has nine regional Customs offices (Hakodate, Kobe, Moji, 
Nagasaki, Nagoya, Okinawa, Osaka, Tokyo, and Yokohama). Customs and tariff policies are formulated by the 
Customs and Tariff Bureau of the Ministry.  
2 Customs Act. Viewed at: http://www.kanzei.or.jp/kanzei_law/329AC0000000061.en.html#c1  and in 
Japanese at: https://elaws.e -gov.go.j p/document?lawid=329AC0000000061 . 
3 Japan Customs (2020), "SMART Customs Initiative 2020", June. Viewed at: 
https://www.customs.go.jp/english/smart_e/index_e.htm  and 
https://www.customs.go.jp/zeikan/seido/smart/index.htm . 
4 These enquiry points are listed in WTO document WT/TPR/S/351/Rev.1, 20  June 2017.  
5 Japan Customs' last time release study was issued in March 2018 ; it indicates that customs clearance 
times (measured from the time when traders submit their declarations to Customs to when Customs permits 
the importation) were 2.1 hours for sea cargo and 0.3 hours for air cargo.  
6 There are no registration requirement s for importers. A customs declaration is needed for importation, 
and must be accompanied by an invoice, bill of lading, insurance certificate, freight account, and packing list. 
Additional documents may be necessary, depending on the type of goods. These additional documents may 
include certificates of origin; a statement on reduction of, or exemption from, customs duty and excise tax 
(when such reduction or exemption is applicable to the goods); and documents required under Japan's 
generalized system of p references.  
7 According to the authorities, in accordance with the provisions of laws and regulations, documents 
submitted to Customs for obtaining permits, approvals, or notifications that are kept by Customs and those 
that can be confirmed as the scope of customs aff airs are subject to the issuance of documentary certificates 
stipulated in Article  102 of the Customs Law. Japan Customs' rates for the fees and permits were viewed at: 
http://www.cust oms.go.jp/english/exp -imp/customsfee.htm . 
8 The MPN is a system that connects tax receiving agencies with financial institutions online. Under the 
MPN, taxpayers may complete the payment to a certain financial institution in an electronic manner 
(e.g. online banking) and notify the tax authority of  their payment immediately. Importers may request this WT/TPR/S/ 438 • Japan  
 
- 38 - 
 teller institutions (government authorities) with financial institutions. The Government does not 
charge for the use of the system; however, the financial institutions involved may collect fees. The 
NACCS finances itself by the usage fee from private and public users. It also provides various online 
logistics services to the private sector.9 The use of customs brokers is not mandatory.  
3.6.  Under the pre -arrival examination system, importers may be notified in advance as to whether 
a customs inspection of the cargo will be required only if they submit documents to Japan Customs 
before their cargo's arrival in Japan. A pre -arrival declaration form must be submitted to the customs 
office that controls the customs bonded ( hozei)  area whe re the cargo is expected to be brought in. 
In principle, inspection of a shipment under the pre -arrival examination system is conducted in a 
hozei  area.10 All importers including authorized economic operators (AEOs) may submit pre -arrival 
declarations befo re the cargo  is brought into a hozei  area. The authorities state that pre -arrival 
declaration is not compulsory; it is an optional measure to facilitate import clearance.  
3.7.  An AEO scheme remains in place to, inter alia, simplify customs procedures for AEOs.11 There 
have been no changes to the AEO scheme since the previous Review.12 As at August 2022, there 
were 735  AEOs. According to the authorities, AEOs accounted for 8% of merchandise imports and 
42% of merchandise exports on a trade value basis in 2021. Un der various mutual recognition 
agreements (MRAs) signed by Japan, Japan Customs considers the status of the members of the 
other AEO programmes when conducting its own risk assessment. During the review period, Japan 
signed MRAs with Thailand on 5  April 2022 and the United  Kingdom on 8  December  2020.  
3.8.  The authorities state that Japan does not publish data on imported merchandise subject to 
various types of inspection: e.g. none, documentary inspection, and physical inspection. They 
indicate that the specific  purpose of the customs inspection is to make sure that the declaration 
matches with the actual goods and all the requirements for import are met . Japan also uses 
post-clearance audit (PCA); between 1  July 2019 to 30  June 2022, Japan Customs conducted PCAs  
for 5,560 importers.13 
3.9.  Importers or other interested parties may request advance rulings on tariff classification, 
customs valuation, the origin of goods, and duty relief/exemption for goods due for import; no 
changes have taken place in the system of adv ance rulings since the previous Review.14 
3.10.   Unchanged since the previous Review, complaints against Japan Customs' decisions may be 
made to the Director -General of Customs within three months of the decision.15 Further appeals may 
be lodged with the Minister of Finance within one month of the decision by the Director -General of 
 
payment method on the NACCS. Japan Customs, Outline of the Multi Payment Network (FAQ) . Viewed at: 
https://www.customs.g o.jp/english/c -answer_e/imtsukan/1310_e.htm . 
9 The NACCS is managed by an independent agency under a public -private partnership agreement. It 
undertakes (i)  online processing of procedures with Customs and other relevant authorities; and 
(ii) private -sector services for arriving/departing ships and aircraft or import/export cargo. Since 2010, it has 
integrated procedures for air and sea cargos with the Port EDI System and the METI's Japan Electronic Open 
Network Trade Control System (JETRAS). The NACCS' mai n features are a system to complete administrative 
procedures, a database system for cargo and transport management, and a communication system among 
users. NACCS. Viewed at: https://www.naccs.jp ; and UNESCAP (2011), Towards a Single Window Trading 
Environment . Viewed at: https://www.unescap.org/sites/default/files/brief6.pdf . 
10 Imports are held at Customs -designated hozei area at the ports of entry. Once the necessary 
inspection takes place and customs duties and taxes are paid, an electronic Notice of Import Permit is issued 
by Customs. Japan Customs. Viewed at: https://www.customs.go.jp/tetsuzuki/c -answer/imtsukan/1108 -
2_jr.htm . 
11 Importers, exporters, manufacturers, warehouse operators, customs brokers, and logistics operators 
are eligible to be AEOs.  
12 AEO importers and customs brokers may submit import and duty/ta x payment declarations 
separately, allowing them to have goods released before submitting the duty/tax payment declaration. 
Importers, exporters, and customs brokers that hold AEO status are eligible to submit import/export 
declarations to any regional Cus toms office. Import declarations may be submitted in advance of cargo 
arrivals. A full description of the AEO scheme (including legal and institutional framework, eligibility criteria, 
and MRAs with trading partners) is contained in WTO document WT/TPR/S/3 51/Rev.1, 20  June 2017. AEOs 
continue to be granted the flexibility to lodge their import/export declarations with any Customs office, not just 
the one where imported goods are stored.  
13 Based on the authorities' flash estimate.  
14 In principle, advance rul ings are issued within 90 days of request for customs valuation, and within 
30 days for other requests. Advance rulings issued in written forms are binding on Customs.  
15 Japan Customs. Viewed at: https://www.customs.go.jp/tetsuzuki/c -answer/sonota/9401_jr.htm . WT/TPR/S/ 438 • Japan  
 
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 Customs. A lawsuit may be filed against the Minister's decision within six months of such decisions. 
Data provided by the authorities in dicate that between 1  January  2022 and 30  September  2022, 
85 complaints and 4 appeals against Customs' decisions were filed but no lawsuits were filed;  
42 complaints were decided in favour of the complainant.  During the review period, there were no 
changes  to penalties imposed against breaches of the Customs Act.16 
3.11.   Japan has signed agreements and arrangements regarding the exchange of customs 
information with 39 countries and regions.17 These include Customs Mutual Assistance Agreements 
between governments,  Customs Procedures Chapters and Implementing Agreements in economic 
partnership agreements (EPAs), and Memoranda of Cooperation between customs authorities.  Japan 
is a member of the World Customs Organization (WCO) ; it signed the WCO's Revised Kyoto 
Conve ntion in 2001 .18 Japan has acceded to flagship instruments in the context of customs, such as 
the International Convention on the Harmonized Commodity  Description and Coding System.  
3.1.2   Customs valuation  
3.12.   Japan's legislation on customs valuation has not changed since the previous Review. It is 
based on rules contained in the Customs Tariff Act.19 Customs value is primarily assessed based on 
the transaction value of the goods (c.i.f. value), which must also reflect costs incurred by the buyer. 
Should it no t be possible to use this method, other methods used (in order) are transaction value of 
identical or similar goods, computed value based on the domestic selling prices or the production 
costs of those goods, and values determined by other methods.20 Accor ding to the authorities, Japan 
does not keep data on different means of determining customs value.  
3.13.   Japan does not require pre -shipment inspection of imports.  
3.1.3   Rules of origin  
3.14.   Japan has notified the WTO that it has non -preferential rules of origin ( ROOs).21 
Non-preferential ROOs are detailed in Article  4-2 of the Cabinet Order for Enforcement of the 
Customs Act, and Articles 1 -6 and 1 -7 of the Ordinance for Enforcement of the Customs Act.  
3.15.   Japan also applies preferential ROOs  under the Generalized System of Pr eferences (GSP) and 
various RTAs it is party to (Section s 2 and 3.1.4). Japan's GSP scheme, which was to expire in 
FY2020, has been extended for 10 years (Section  2.3.3).  
3.16.   Japan applies MFN tariff rates to imports from eligible countries and regions, wherea s the 
origin is defined as the country or region in which the goods concerned have been wholly obtained 
or have undergone substantial transformation, which is defined as having a change in the four -digit 
heading in the Harmonized System, or (in some cases)  subject to specific origin -conferring 
processing or working. Operations such as packing, applying labels or brands, and simple mixing are 
insufficient working or processing for conferring origin.  
3.17.   Japan Customs has a webpage in English on its ROO framework  (both preferential and 
non-preferential), which includes legal texts, a facility for searching for product -specific ROOs, and 
contact points.22 
 
16 WTO document G/RO/N/1, 9  May 1995.  
17 Australia; Austria; Belgium; Brazil; Brunei  Darussalam; Canada; Chile; China; Chinese  Taipei; the 
European  Union; France; Germany; Hong Kong, China; India; Indonesia; the Islamic Republic of Iran; Italy; 
the Republic of Korea; Macao, China; Malaysia; Mexico; the Republic of Moldova; Mongolia; the Netherlands; 
New Zealand; Norway; Peru; the Philippines; the Russian  Federation; Singapor e; South  Africa; Spain; 
Switzerland; Thailand; the United  Kingdom; the United  States; Uruguay; Uzbekistan; and Viet  Nam.  
18 WCO, List of the Contracting Parties to the Revised Kyoto Convention . Viewed at: 
http://www.wcoomd.org/en/Topics/Facilitation/Instrument%20and%20Tools/Conventions/pf_revised_kyoto_co
nv/Instruments . 
19 Customs Tariff Act. Viewed at: https://www.kanzei.or.jp/kanzei_law/143AC0000000054.en.html . 
20 Japan Customs, Rules of Origin . Viewed at: http://www.customs.go.jp/roo/english/index.htm . 
21 WTO documents G/RO/N/1, 9  May 1995; and G/RO/N/1/Add.1, 22  June 1995.  
22 Japan Customs, Rules of Origin . Viewed at: https://www.customs.go.jp/r oo/english/index.htm . WT/TPR/S/ 438 • Japan  
 
- 40 - 
 3.1.4   Tariffs  
3.18.   Two main laws continue to govern the setting of tariffs in Japan: (i) the Customs Tariff Act23, 
which provides for, inter alia, customs duty rates through the appended Tariff Schedule, customs 
duty reductions and exemptions, and the application of tariff quotas; and (ii)  the Temporary Tariff 
Measures Act24, which  provides for temporary exemptions to the Customs Act and the Customs Tariff 
Act to allow for customs duty adjustments if needed for the purposes of the sound development of 
the national economy. During the review period, the Temporary Tariff Measures Act was amended 
several times to, inter alia, extend the effective periods of temporary rates of customs duty and the 
related exemption system; review customs duties on individual items; extend special tariff measures 
in the Okinawa prefecture; apply duty -free rates to certain products; and expand  the prior reporting 
system. Regarding the special tariff measures in the Okinawa, the Temporary Tariff Measures Act 
was amended in 2022 to extend the application period of the Selective Taxation system and the 
Specified Duty -Free Shop system for three and  two years, respectively.  
3.19.   The authorities state that customs duties in Japan amounted to JPY  0.9 trillion  (or 1.2% of 
central government tax revenue) in FY2021.  
3.1.4.1   MFN applied tariff  
3.20.   Calculations are based on FY2022 tariff schedule (as at 1  April 2022).25 The tariff schedule 
based on HS22 continues to have three distinct sets of rates: statutory rates (including both general 
and temporary rates), WTO bound rates, and preferential rates (under the GSP and RTAs). In the 
case of statutory rates, the "temporary" r ate, which is reviewed annually, is normally used instead 
of the higher general rate; the lower of the statutory and WTO bound rates is applied to 
WTO Members on an MFN basis, except when preferential rates are applied. Where the temporary, 
general, or pre ferential rate is higher than the corresponding WTO bound rate, the latter applies to 
WTO Members.26 
3.21.   The FY2022 MFN applied tariff structure and rates have changed little compared with those 
of FY2019. Changes of numbers are mainly due to change of nomencl ature from HS17 to HS22 and 
different/higher ad valorem  equivalents ( AVEs) used for non -ad valorem  rates.27 
3.22.   Japan's MFN applied tariff structure remains complex. With a total of 27 2 tariff rates, there 
are 136 different ad valorem  rates, 75 different specific rates, 29 different alternate rates, and 
24 different compound rates, as well as some other types of duties ( 4 differential duties and 4  sliding 
duties). The FY2022 tariff sched ule comprised 9,467 lines, excluding in -quota rates (compared to 
9,181 in FY2019) at the HS 9 -digit level of the HS22 nomenclature (Table  3.1).28 Of all tariff lines, 
92.7% involve ad valorem  rates (including duty -free lines, which represent 40.9% of all l ines). The 
remaining 7.3% (i.e. 689 lines) are non -ad valorem  rates (Chart  3.1); they apply mainly to fats and 
oils, footwear, prepared foods, mineral products, live animals and animal products, vegetables, and 
textiles and clothing (Chart  3.2). 
 
23 Customs Tariff Act (Act No.  54 of 1910), as amended. Viewed at: 
http://www.kanzei.or.jp/kanzei_law/143AC0000000054.en.html . 
24 Temporary Tariff Measures Act. Viewed at: 
https://www.kanzei.or.jp/kanzei_law/335AC0000000036.en.html . 
25 Japan Customs, Japan's Tariff Schedule as of January  1, 2022 . Viewed at: 
https://www.customs.go.jp/english/tariff/2022_1_1/index.htm. 
26 Since the general rates are set with a long -term viewpoint based upon conditions of domestic 
industries and other things, the temporary rates are appl icable only for a certain period of time in order to 
modify general rates to meet policy needs or for other reasons.  
27 The estimated AVEs have some limits. First, if there are no imports, the estimates of AVEs are not 
calculated. A lack of imports does not  necessarily imply that the tariff is high; it may be that there is no 
domestic demand for a particular product. For the 2022 tariff analysis, it was not possible to estimate AVEs for 
approximately 2.4% of all tariff lines. Second, the estimates of AVEs ar e affected by variations in import prices 
through fluctuations in world market prices and/or exchange rates even though the tariff rates remain the 
same. Third, the unit values used may vary depending on the source of imports and whether they qualify for a  
tariff concession or exemption, resulting in a wide variation in AVEs without any change in customs duties.  
28 Excluding in -quota lines.  WT/TPR/S/ 438 • Japan  
 
- 41 - 
 Table  3.1 Structure of MFN tariffs FY2019 and FY2022  
(%, unless otherwise indicated)   
MFN applied  Final  
  FY2019  FY2022  bounda 
Bound tariff lines (% of all tariff lines)  98.1 98.0 98.0 
Simple average rate  6.3 6.3 6.4 
 WTO agricultural products  17.9 18.0 18.4 
 WTO non -agricultural products  3.5 3.4 3.5 
 HS 01 -24 15.7 15.8 16.3 
 HS 25 -97 3.3 3.3 3.4 
Duty-free tariff lines (% of all tariff lines)  40.5 40.9 38.3 
Simple average rate of dutiable lines only  10.6 10.7 10.6 
Tariff quotas (% of all tariff lines)  2.0 2.0 2.0 
Non-ad valorem  tariffs (% of all tariff lines)  7.1 7.3 6.7 
Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  1.7 2.4 2.1 
Domestic tariff "peaks" (% of all tariff lines)b 6.9 7.0 6.9 
International tariff "peaks" (% of all tariff lines)c 7.9 7.9 8.0 
Standard deviation  18.0 18.1 18.3 
Nuisance applied rates (% of all tariff lines)d 1.6 1.6 1.6 
Number of lines  9,181  9,467  9,282  
Duty-free lines  3,717  3,876  3,627  
Ad valorem  rates (>0%)  4,816  4,902  5,017  
Non-ad valorem  rates 648 689 638 
Specific  247 243 242 
Compound  75 94 101 
Alternate  295 321 295 
Other  31 31 0 
a Final bound rates are based on the FY2022 tariff schedule. Calculations are based on 9,282 bound 
rates, including 19 partially bound rates  and e xcluding 185 unbound rates.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those ex ceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  All tariff calculations exclude in -quota lines  and includ e AVEs, as available, provided by the 
authorities.  
 In case of unavailability, the ad valorem  part is us ed for compound and alternate rates.  
 Including an amount collected by the Government or its agent, where applicable.  
 FY2019 and FY2022 are based on HS17 and HS22 nomenclature, respectively.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and Japan Customs.  
Chart  3.1 Tariff distribution by type of duty, FY2022  
 
Source:  WTO Secretariat calculations, based on Japan Customs.  
Chart 3.1   MFN applied: tariff distribution by type of duty, FY2022
Source:  WTO Secretariat calculations, based on Japan Customs online information.Ad valorem duty
51.8%
Duty free
40.9%Non-ad valorem duty
7.3%
Alternate duty  3.4%Specific duty  2.6%
Other  0.3%Compound duty  1.0%WT/TPR/S/ 438 • Japan  
 
- 42 - 
 3.23.   In FY2022, Japan's overall simple average MFN applied tariff rate is 6.3% (the same as in 
FY2019); the simple average MFN applied tariff rate for agriculture (WTO definition) is 18.0% (17.9% 
in FY2019), compared with 3.4% for non -agricultural products (3.5% in FY2019) (Table  3.2). The 
authorities have provided AVEs for 464 out of 689 non -ad valorem  lines based on import data as at 
19 Ju ly 2022 .29 Consequently, the tariff analysis is based on 99.0% of the 9,467 tariff lines.30 The 
simple average for all AVEs supplied is 39.7 % (the same as th e average used in the previous 
report31). The highest tariff rate is 428.8% (AVE of JPY  354/kg) for certain beans (HS 0713.39.227) 
followed by 414.4% (AVE of 29.8% + JPY  687/kg) for certain whey and modified whey 
(HS 0404.10.187), and 337.7% (AVE of 341 ye n/kg) for rolled or flaked grains of rice 
(HS 1104.19.290). The first - and second -highest AVEs are out -of-quota rates. All the 100 highest 
tariffs have non -ad valorem  rates (66 tariff lines). Sugar centrifugal (HS 1702.90.110) has the 
highest ad valorem  rate of 61.9%, ranking 102nd in the list of highest tariff rates.  
3.24.   Overall, tariff escalation in FY2022 is highest for the first stage of processing and lowest for 
semi-processed products. However, this trend is not always reflected at the product level; for 
example, for food, beverages, and tobacco, the semi -processed stage attracts the highest average 
tariffs (Chart  3.3). 
3.25.   In FY2022, simple average MFN applied tariff rates are relatively high for footwear and 
headgear, prepared foods, vegetables, live animals , hides and skins, arms and ammunition, and 
textiles and clothing (Chart  3.4). 
3.26.   For FY2022, 186 tariff lines, 132 agricultural tariff lines (WTO definition), and 
54 non-agriculture tariff lines (WTO definition) are subject to MFN tariff quotas, of which 11 are 
under state trading. In FY2019, there were 181 tariff lines with (out of) quota tariff rates. The 
increase is explained by the nomenclature change from HS17 to HS22, resulting in splitting of the 
new tariff line under HS subheading 0403.20 (yogurt). O ut-of-quota rates for 38 tariff lines are 
ad valorem, while out -of-quota rates for 148 tariff lines are non -ad valorem . Their average rates 
differ considerably: in -quota rates average 18.3%, while out -of-quota rates average 80.3%. Japan's 
tariff quota regim e is further described in Section  4.1. 
 
29 For 76 of 321 alternate rates, no AVEs were provided (the ad valorem  part is used). For 55 of 94 
compound rates, no AVEs were provided (the ad valorem  part is used). For 78 of 243 specific rates, no AVEs 
were provided. For 15 of 31 "other" rates, no AVEs were provided.  
30 (((9,467 -78-15)/9,467 )*100). 
31 WTO document WT/TPR/S /397/Rev.1, 6  November  2020.  WT/TPR/S/ 438 • Japan  
 
- 43 - 
 Chart  3.2 Share of non -ad valorem  duties, by HS section, FY2022  
 
Note:  Each bar depicts the percentage of tariff lines within each HS section that carries non -ad valorem  
duties; the figures in parentheses show the corresponding number of lines. In -quota rates are not 
included.  
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
Table  3.2 Japan 's tariff summary, FY2022  
  Number of 
lines  Average 
(%) Range 
(%) Standard 
deviatio
n Duty 
free 
(%) Non-ad 
valorem  
rates (%)  
Total  9,467  6.3 0-428.8  18.1 40.9 7.3 
HS 01 -24 2,312  16.0 0-428.8  32.5 17.3 15.9 
HS 25 -97 7,155  3.3 0-320.8  7.7 48.6 4.5 
By WTO category  
WTO agricultural products  1,886  18.0 0-428.8  31 24.0 19.9 
Animals and products thereof  241 12.0 0-134.4  18.8 31.5 20.7 
Dairy products  104 63.1 6.3-
414.4  69.4 0.0 78.8 
Fruit, vegetables, and plants  514 13.3 0-428.8  33.2 15.0 2.9 
Coffee and tea  69 18.9 0-76.5 12.0 10.1 8.7 
Cereals and preparations  344 29.3 0-428.8  43.2 9.9 29.1 
Oils seeds, fats, oil and their 
products  136 4.8 0-269.4  23.6 41.9 30.9 
Sugars and confectionery  49 37.6 0-184.7  35.8 6.1 59.2 
Beverages, spirits and tobacco  152 17.1 0-65.5 12.0 17.1 24.3 
Cotton  5 0.0 0-0 0.0 100.0  0.0 
Other agricultural products, 
n.e.s.  272 5.4 0-284 22.1 61.8 5.1 
WTO non -agricultural products  7,581  3.4 0-320.8  7.2 45.2 4.1 
Fish and fishery products  546 6.2 0-15 3.6 4.6 0.2 
Minerals and metals  1,269  0.9 0-11.7 1.6 72.3 3.1 
Chemicals and photographic 
supplies  1,316  2.5 0-6.5 1.8 31.1 0.6 
Wood, pulp, paper and furniture  548 2.0 0-10 2.7 61.9 0.0 
Textiles  1,473  5.5 0-25 2.5 4.8 13.8 
Clothing  376 8.9 0-13.4 2.1 1.3 0.0 
Leather, rubber, footwear and 
travel goods  313 14.9 0-320.8  29.2 38.3 8.0 
(122)
(71)(39)
(136)(38)
(5)(6)
(0) (0) (0)(208)(25)
(0) (0)(37)
(0) (0) (0) (0)(2)(0)(689)
0%5%10%15%20%25%30%35%40%45%
Live animals & prod.
Vegetable products
Fats and oils
Prepared food, etc.
Mineral prod.
Chemicals & prod.
Plastic & rubber
Hides & skins
Wood & articles
Pulp, paper, etc.
Textiles & articles
Footwear
Articles of stone
Precious stones, etc.
Base metals & prod.
Machinery
Transport equipment
Precision instruments
Arms & ammunition
Misc. manufactures
Works of art, etc.
TotalChart 3.2    MFN applied:  share of non -ad valorem duties, by HS section, FY2022
Note:
Source:Each bar depicts the percentage of tariff lines within each HS section that carry non -ad valorem duties;  
the figures in parentheses show the corresponding number of lines.  In -quota rates are not included.
WTO Secretariat estimates, based on Japan Customs.WT/TPR/S/ 438 • Japan  
 
- 44 - 
   Number of 
lines  Average 
(%) Range 
(%) Standard 
deviatio
n Duty 
free 
(%) Non-ad 
valorem  
rates (%)  
Non-electric machinery  628 0.0 0-0 0.0 100.0  0.0 
Electric machinery  343 0.1 0-4.8 0.5 98.0 0.0 
Transport equipment  180 0.0 0-0 0.0 100.0  0.0 
Non-agricultural products, n.e.s.  499 1.2 0-8.4 2.3 73.7 0.4 
Petroleum  90 1.7 0-7.9 1.9 28.9 40.0 
By ISIC sector  
ISIC 1 - Agriculture, hunting and 
fishing  694 5.2 0-284 17.3 45.4 4.9 
ISIC 2 - Mining  108 0.1 0-4.1 0.5 96.3 0.9 
ISIC 3 - Manufacturing  8,665  6.4 0-428.8  18.3 39.9 7.5 
Manufacturing excluding food 
processing  6,951  3.3 0-320.8  7.8 47.1 4.6 
By stage of processing  
First stage of processing  1,212  6.7 0-728.8  28.5 49.9 4.7 
Semi-processed products  3,592  4.8 0-337.7  9.7 27.3 8.3 
Fully processed products  4,663  7.3 0-414.4  19.5 49.2 7.2 
By HS section  
01 Live animals and products  783 14.4 0-414.4  33.4 15.1 15.6 
02 Vegetable products  602 16.1 0-428.8  45.8 30.7 11.8 
03 Fats and oils  95 3.7 0-29.8 4.3 26.3 41.1 
04 Prepared food, beverages and 
tobacco  832 18.1 0-266.6  19.0 8.8 16.3 
05 Mineral products  248 0.7 0-7.9 1.5 66.1 15.3 
06 Chemicals and products 
thereof  1,194  2.3 0-21.3 2.2 35.5 0.4 
07 Plastics, rubber, and articles 
thereof  309 2.4 0-6.5 2.0 37.2 1.9 
08 Raw hides and skins, leather, 
and its products  193 10.5 0-30 10.8 33.7 0.0 
09 Wood and articles of wood  358 3.2 0-10 2.9 36.9 0.0 
10 Pulp of wood, paper and 
paperboard  166 0.0 0-0 0.0 100.0  0.0 
11 Textiles and textile articles  1,830  6.4 0-109.1  5.6 4.8 11.4 
12 Footwear, headgear, etc.  104 28.5 0-320.8  45.2 4.8 24.0 
13 Articles of stone, plaster, 
cement  172 1.1 0-8 1.6 62.8 0.0 
14 Precious stones and metals, 
pearls  77 1.4 0-10 2.3 71.4 0.0 
15 Base metals and articles 
thereof  855 0.9 0-11.7 1.6 71.7 4.3 
16 Machinery, electrical 
equipment, etc.  974 0.0 0-4.8 0.3 99.3 0.0 
17 Transport equipment  191 0.0 0-8.4 0.6 99.5 0.0 
18 Precision equipment  255 0.3 0-16 1.5 96.5 0.0 
19 Arms and ammunition  22 6.9 5.4-8.4 1.5 0.0 0.0 
20 Miscellaneous manufactured 
articles  188 1.5 0-6.6 2.1 62.8 1.1 
21 Works of art, etc.  19 0.0 0-0 0.0 100.0  0.0 
Note:  Calculations exclude in -quota rates and include AVEs, as available, provided by the authorities . In 
case of unavailability, the ad valorem  part is used for compound and alternate rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities and Japan Customs.  
3.27.   During the review period, some changes were made to MFN applied tariff rates, i.e. applying 
a temporary duty-free rate on gloves of polymers of vinyl chloride  (HS 3926.20 .011) in 2021 and a 
reduction of import tariff on certain apparel (HS 6106.10) in 2022.  Furthermore, the authorities 
state that Japan revoked the tariff concessions on goods originating in the Ru ssian Federation under 
the General Agreement on Tariffs and Trade 1994 on 21  April 2022 (to be implemented until 
31 March 2023).  WT/TPR/S/ 438 • Japan  
 
- 45 - 
 Chart  3.3 Tariff escalation by 2 -digit ISIC industry, FY2022  
 
n.a. Not applicable.  
Note:  Calculations exclude in -quota rates and include AVEs, as available, provided by the authorities . In 
case of unavailability, the ad valorem  part is used for compound and alternate rates.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and Japan Customs.  
3.28.   Seasonal tariffs, with different MFN rates in season, apply to six tariff lines, relating to 
plantains, bananas, oranges, and grapes.32 
3.1.4.2   Bound tariff  
3.29.   Japan has bound 98.0% of lines (185 are unbound)33; unbound lines relate mainly to fisheries 
(fish, crustaceans, and seaweed), petroleum oils, and wood and articles thereof. There are no 
instances where MFN applied rates exceed their corresponding bound rates. The overall gap between 
the simple averages of MF N applied and bound rates is around 0.1  percentage point (Table  3.1). The 
highest gap (40  percentage points) concerns beef jerky.  
3.1.4.3   Tariff reductions and exemptions  
3.30.   Customs duty reduction s and exemptions are in place to, inter alia, develop and protect 
domes tic industries, promote trade and science, meet requirements associated with social welfare, 
and eliminate double taxation. Two types of customs duty exemptions remain in place: (i)  a 
permanent system as set out in the Customs Tariff Act; and (ii)  a tempor ary system as set out in 
the Temporary Tariff Measures Act, unchanged since the previous Review.  
3.31.   Article  12 of the Customs Tariff Act provides for duty reductions/exemptions in cases where 
the prices of imported daily necessities have increased (to prevent  price increases of daily necessities 
such as food and clothing) with a view to maintaining stability in people's daily lives. The 
merchandise goods currently subject to such duty reductions/exemptions include imported rice, 
hulled or un -hulled; barley; wh eat; foodstuffs; apparel; and other goods that are deemed closely 
related to people's daily lives.  
 
32 The specific tariff lines for which seasonal tariffs are applied are plantains, fresh (HS 0803.10.100); 
bananas, fresh (HS 0803.90.100); oranges, fresh or dried (HS 0805.10.000); grapes, fresh (HS 0806.10.000); 
bananas, provi sionally preserved (HS 0812.90.100); and oranges, provisionally preserved (HS 0812.90.200). 
There are two tariff lines on grapefruit for which seasonal tariffs are applied (grapefruit including pomelos, 
fresh or dried (HS 0805.40.000) and grapefruit includ ing pomelos, provisionally preserved (HS 0812.90.300)); 
however, the MFN applied tariff and the seasonal tariff are the same (at 10%).  
33 The increase in unbound tariff rates as compared with the situation in FY2019 (175 tariff lines) is due 
to a nomenclatu re change.  
n.a.n.a.
0%5%10%15%20%
31 32 33 34 35 36 37 38 39 Total
manuf.Chart 3.3   MFN applied: tariff escalation by 2 -digit ISIC industry, FY2022
Average applied rate
in manufacturing
(6.4%)First stage of processing
Semi-processed
Fully processed
n.a.       Not applicable.31   Food , beverages and tobacco      
32   Textiles and leather  
33   Wood and furniture      37   Basic metals
38   Fabricated metal products and machinery
39   Other manufacturing34   Paper, printing and publishing
35   Chemicals
36   Non -metallic mineral products
Note:  Calculations exclude in -quota rates and include AVEs, as available.  In case of unavailability, the ad valorem part is used for
compound and alternate rates.   
Source:  WTO Secretariat calculations, based on data provided by the authorities;  and Japan Customs online information.WT/TPR/S/ 438 • Japan  
 
- 46 - 
 Chart  3.4 Simple average applied MFN tariff rates, by HS section, FY2019 and FY2022  
 
Note:  Calculations exclu de in-quota rates and include AVEs, as available, provided by the authorities . The 
ad valorem  part of compound and alternate rates are used where AVEs are not available.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and Japan Customs.  
3.32.   Under Article  13 of the Customs Tariff Act, customs duties may be reduced or exempted on 
imported raw materials to develop domestic industries manufacturing specific products or to 
maintain stability in people's everyday liv es. The merchandise goods currently subject to such duty 
reductions/exemptions are (i) mixed feeds (e.g. kaoliang and other grain sorghums, maize (corn), 
rye, powdered banana, sugar (its sucrose content, by weight in dry state, corresponds to a 
polarimeter  reading of 98.5  degree s or more), molasses, and manioc or sliced and half -dried sweet 
potatoes (including powder or pellets of manioc and sliced and half -dried sweet potatoes)); 
(ii) unmixed feeds (e.g. kaoliang and other grain sorghums, maize (corn)); an d (iii)  groundnut oil 
and groundnuts. Generally, tax rates are 0% on these products. According to the authorities, the 
list of the goods subject to duty reductions/exemptions under Article  13 does not fall in the category 
of "end -use tariff concessions".34 
3.33.   In FY2021, forgone tax revenue relating to customs duty reductions and exemptions 
amounted to around JPY  232 billion (around 26% of tariffs collected).  
3.1.4.4   Preferential tariff  
3.34.   Japan offers preferential tariff rates to 126  developing countries and 5  territorie s under the 
GSP; least -developed countries (45 in 2021) receive additional preferences. Japan also grants 
preferential access under its RTAs with Association of Southeast Asian Nations ( ASEAN ) members, 
Australia, Brunei  Darussalam, Chile, members of the Co mprehensive and Progressive Agreement for 
Trans -Pacific Partnership, the European  Union, India, Indonesia, Malaysia, Mongolia, Peru, the 
Philippines, parties to the Regional Comprehensive Economic Partnership (RCEP) Agreement, 
Singapore, Switzerland, Thail and, the United  Kingdom, the United  States, and Viet  Nam (Section  2). 
 
34 WTO document WT/TPR/S/32, 5  January  1998, p.  43, para.  12. 
0%5%10%15%20%25%30%
Live animals & prod.
Vegetable products
Fats and oils
Prepared food, etc.
Mineral prod.
Chemicals & prod.
Plastic & rubber
Hides & skins
Wood & articles
Pulp, paper, etc.
Textiles & articles
Footwear, headgear
Articles of stone
Precious stones, etc.
Base metals & prod.
Machinery
Transport equipment
Precision instruments
Arms & ammunition
Misc. manufactures
Works of art, etc.
TotalChart 3.4   Simple average applied MFN tariff rates, by HS section, FY2019 and FY2022
Excluding in -quota rates .  Including AVEs provided by the authorities, as available.   The ad valorem part 
of compound and alternate rates are used where AVEs are not available.  
WTO Secretariat calculations, based on data provided by the authorities; and Japan Customs online 
information.Note:
Source:FY2019 FY2022WT/TPR/S/ 438 • Japan  
 
- 47 - 
 3.35.   The percentage of duty -free rates under RTAs was around twice as much as that of the MFN 
tariff (40.9% in FY2022) (Table  3.3). 
Table  3.3 Summary analysis of the Japanese preferential tariffs, FY2022  
 
  Total  WTO agriculture  WTO non -agriculture  
Average  Duty -free Average  Duty -free Average  Duty -free 
(%) rates (%)  (%) rates (%)  (%) rates 
(%) 
MFN 6.3 40.9 18.3 24.0 3.4 45.2 
GSP 5.2 58.9 17.0 32.7 2.4 65.5 
LDC 0.7 97.8 2.4 96.6 0.2 98.1 
Economic partnership agreements   
Singapore  3.5 85.6 14.0 61.0 1.0 91.7  
Mexico  3.4 85.2 16.0 41.4 0.4 96.1  
Malaysia  3.1 87.8 13.9 61.5 0.5 94.3  
Chile 3.3 86.6 14.7 58.2 0.6 93.7  
Thailand  3.1 88.2 13.8 62.1 0.5 94.8  
Indonesia  3.3 85.5 14.8 52.9 0.5 93.6  
Brunei  Darussalam  3.5 84.8 14.8 53.7 0.7 92.5  
ASEAN  3.3 85.6 14.5 53.8 0.5 93.5  
Philippines  3.0 88.6 13.6 59.7 0.4 95.8  
Switzerland  3.3 84.6 14.3 54.4 0.6 92.2  
Viet Nam 3.2 86.3 14.3 54.5 0.5 94.2  
India 3.4 86.2 14.8 55.6 0.6 93.8  
Peru 3.2 87.4 14.5 55.7 0.4 95.3  
Australia  3.1 86.3 14.0 54.4 0.4 94.2  
Mongolia  3.7 79.2 15.2 41.3 0.9 88.6  
TPP11  2.0 84.6 8.8 49.3 0.4 93.4  
EU 2.3 85.1 10.4 49.9 0.4 93.8  
United  Kingdom  2.4 85.0 11.1 49.7 0.4 93.8  
RCEP (excl. China and 
Korea, Rep. of)  4.1 74.0 16.8 35.0 1.1 83.7 
 
RCEP (China)  5.0 57.2 16.9 35.5 2.1 62.6  
RCEP (Korea, Rep. of)  4.9 65.7 17.1 35.4 1.9 73.2  
United  States  5.5 43.3 14.4 35.7 3.4 45.2 
Memorandum        
 
Singaporea 1.9 89.1 8.6 63.5 0.3 95.5  
Mexicob 1.8 88.2 8.6 98.5 0.2 96.5  
Malaysiaa 1.8 89.7 8.1 63.7 0.2 96.2  
Chileb 1.8 89.0 8.4 60.4 2.0 96.1  
Thailandc 3.0 88.3 13.7 62.2 0.5 94.8  
Indonesiac 3.1 86.2 14.2 54.1 0.5 94.2  
Brunei  Darussalama 1.8 88.1 8.4 57.0 0.2 95.9  
Philippinesc 3.0 88.6 13.6 59.7 0.4 95.8  
Viet Nama 1.8 88.1 8.4 57.3 0.2 95.8  
Perub 1.8 88.6 8.5 58.2 0.2 96.1  
Australiad 1.9 86.8 8.4 56.2 0.3 94.5 
a Based on lowest rate applied from country's EPA, ASEAN EPA, TPP11, and RCEP.  
b Based on lowest rate applied from country's EPA and TPP11.  
c Based on lowest rate applied from country's EPA, ASEAN EPA, and RCEP.  
d Based on lowest rate applied from country's EPA, TPP11, and RCEP.  
Note:  Calculations exclude in -quota rates and include AVEs, as available, provided by the authorities.  
 In case of unavailability, the ad valorem  part is used for compound and alternate rates.   
Source:  WTO Secretariat calculations, based on information provided by the authorities; and Japan Customs.  WT/TPR/S/ 438 • Japan  
 
- 48 - 
 3.1.4.5   Retaliatory tariff system  
3.36.   Under Article  6 of the Customs Tariff Act35, Japan maintains a retaliatory tariff system, under 
which additional tariffs may be imposed under either of the following situ ations: (i)  when there is a 
need for taxation to defend Japan's interests and accomplish the aim of the WTO  Agreement; or 
(ii) when a certain party or parties treat vessels, airplanes, and cargos from or via Japan with 
discrimination and inexpedience. The authorities state that Japan currently does not impose these 
tariffs.36 
3.37.   On 1 April 2022, t he Cabinet Order Relating to Retaliatory Duties Based on EPAs entered into 
force. It mainly provides that (i)  the matters that should be published in order to ensure the 
transparency in the procedures when the retaliatory duties based on EPAs have been decided to be 
imposed, modified, or removed; and (ii)  the Council on Customs, Tariff, Foreign Exchange and Other 
Transactions, which is an organization to review and dis cuss important matters concerning tariffs, 
shall be consulted when taking some measures of the retaliatory duties based on EPAs are considered 
to be necessary.37 
3.1.5   Other charges affecting imports  
3.38.   Japan levies a consumption tax (value added tax) of 10% on goo ds imported into or 
manufactured in Japan and a reduced rate (8%) on a list of goods. The reduced tax rate is applied 
to food, beverages (excluding alcoholic beverages and eating -out services), and certain newspapers 
under subscription. There are transacti ons not considered taxable such as the transfer or lease of 
land and the transfer of postage stamps. In addition, there are non -taxable transactions based on 
social policy considerations such as social insurance, medical fees, and social welfare services. With 
respect to imports, the consumption tax is paid on customs value of the goods, plus the customs 
duty and any other excise taxes payable (Section  3.3.1).38 
3.1.6   Import prohibitions, licensing, and quotas  
3.1.6.1   Import prohibitions  
3.39.   Import prohibitions are contained  in Article  69-11 of the Customs Act.39 These include certain 
drugs; arms; explosives; chemicals; pathogens; forged/altered money, bank notes, revenue 
stamps, and postal stamps; books, drawings, carvings etc. detrimental to public security or 
corrupting of  public morals; child pornography; intellectual property (IP) infringing goods; and goods 
produced using unlawfully obtained trade secrets (as stipulated in the Unfair Competition Prevention 
Act). Exceptions to some of these import prohibitions apply to pe rsons authorized to import such 
items under domestic laws/regulations or international treaties. During the review period , Japan 
expanded the scope of IP infringing goods that are subject to import prohibitions (Section 3.3.7.13 ). 
3.40.   Import prohibitions are s tipulated in several laws and regulations: (i)  the Industrial Safety 
and Health Act mentions that it is prohibited to import substances that cause significant impairments 
to workers' health, and that are specified by Cabinet Order; (ii)  under the Act on th e Prevention of 
Infectious Diseases and Medical Care for Patients with Infectious Diseases (the Infectious Diseases 
Control Law), Japan prohibits importing designated animals, such as raccoon dogs and bats, except 
when permission is obtained from the Minis ter of Health, Labour and Welfare and the Minister of 
Agriculture, Forestry and Fisheries (Article  54). It also prohibits importing Class 1 Pathogens, such 
as Ebola virus, except for imports designated by the Minister of Health, Labour and Welfare as items  
that need to be procured from foreign countries (Article  56(4)); (iii)  the Narcotics and Psychotropics 
Control Act prohibits importations of narcotics, psychotropics, and their raw materials; 
 
35 Customs Tariff Act. Viewed at: http://www.kanzei.or.jp/kanzei_law/143AC0000000054.en.html#a6 . 
36 According to the authorities, the most recent occasion when Japan applied a retaliatory tariff was with 
respect to certain goods originating in the United  States, from September 2005 until August 2014. This was in 
relation to the Byrd Amendment. The autho rities also indicate that Japan has notified the WTO that it retains 
the right to impose this tariff.  
37 Japan Customs. Viewed at: http://www.customs.go.jp/kaisei/seirei.htm . 
38 Japan Customs, Outline of Tariff and Duty Rates System . Viewed at: 
http://www.customs.go.jp/english/summary/tariff.htm . 
39 Customs Act. Viewed at: 
http://www.kanzei.or.jp/kanzei_law/329AC0000000061.en.html#c6s4ss2a69_11 . WT/TPR/S/ 438 • Japan  
 
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 (iv) stimulants' raw materials are prohibited under the Stimula nts Control Act; and (v)  the 
importation of cannabis and opium is prohibited by the Cannabis Control Act and the Opium Control 
Act, respectively. Furthermore, no one may import any stimulants or other related drugs, except the 
persons who have licences and  permits.  
3.41.   In 2022, Japan imposed an import ban on certain goods from the Russian  Federation 
(e.g. machines, alcoholic beverages, and wood).40 
3.1.6.2   Import licensing (approvals) and quotas  
3.42.   Imposition of import approvals through Cabinet Order is prescribed in Article  52 of the Foreign 
Exchange and Foreign Trade Act.41 The implementing regulation in this regard is the Import Trade 
Control Order (last amended in 2003), under which the Minister of Economy, Trade and Industry 
(METI) has the authority to (i)  designate goods subject to import approval based on places of orig in 
or places of shipment of goods as well as to approve imports of these goods; and (ii)  designate 
goods subject to import quotas and approve imports of these goods.42 The Foreign Exchange and 
Foreign Trade Control Act continues to, inter alia, impose pena lties (both fines and administrative 
penalties) for violations of import and export control regulations.  
3.43.   Japan maintains "prior confirmation" and "customs clearance confirmation" systems, 
unchanged since the previous Review.  
3.44.   Japan has notified its replies to the WTO questionnaire on import licensing procedures for 
2018 and 2017.43 Japan has also notified a new import licensing requirement for certain mercury 
and mercury -added products; this is to implement the Minamata Convention on Mercury (adopted 
in Octo ber 2013), which aims to protect human health and the environment from anthropogenic 
emissions and releases of mercury and mercury compounds.44 During the review period, no issues 
were raised about Japan's import licensing regime by Members in the WTO's Co mmittee on Import 
Licensing.  
3.45.   Goods subject to import approvals under the Import Trade Control Order are set out in 
Table  3.4. When there are changes to the items on this list, they are published as an "import notice" 
in the Official Gazette. Import approva ls are generally valid for six months.45 
Table  3.4 Goods subject to import licensing under the Import Trade Control Order, 2022  
Items  HS nos.  Application  Rationalea 
Marine animals and their 
preparations; fish, crustaceans, 
other aquatics and their 
preparations; products of animal 
origin (marine animals, fish, 
crustaceans and molluscs); 
seaweeds and their preparations  01.06; 02.08; 02.10; 
03.01 -03.07; 03.09; 05.04; 
05.06 -05.08; 05.11; 12.12; 
15.04; 15.06; 15.21; 16.01; 
16.02; 16.04; 16.05; 20.01; 
21.03; 21.06; 21.08; 23.01; 
23.09  Products shipped 
from outside 
Japanese waters  Prevent adverse effects to 
fishing activities of Japanese 
fishers  
Salmon and (salmon) trout and their 
preparations  03.01; 03.02; 03.03; 03.04; 
03.05; 03.09; 16.04  China, 
Democratic 
People's 
Republic of 
Korea, 
Chinese  Taipei  Compliance with UNCLOS 
provisions  
Fresh and chilled Bluefin tuna 
farmed in the Atlantic Ocean and the 
Mediterranean  03.02; 03.04  Non-members of 
ICCAT  Compliance with ICCAT 
resolution  
Fresh and chilled Southern Bluefin 
tuna 03.02; 03.04  Products from 
non-members of 
CCSBT  Compliance with CCSBT 
resolution  
Foot-and-mouth disease vaccine  Ex. 3002.42  All trading 
partners  Protection of animal life/ 
health  
 
40 The notification was issued on 12  April 2022 and entered into force on 19  April 2022. METI. Viewed 
at: https://www.meti.go.jp/press/2022/04/20220412002/20220412002.html . 
41 Foreign Exchange and Foreign Trade Act. Viewed at: 
https://www.japaneselawtranslation.go.jp/en/laws/view/3700/en .  
42 Import Trade Control Order , Cabinet Order No.  414 of 29/12/1949, as amended. Viewed at: 
https://www.japaneselawtranslation.go.jp/en/laws/view/3827 . 
43 WTO documents G/LIC/N/3/JPN/17, 9  October  2018; and G/LIC /N/3/JPN/16, 2  October  2017.  
44 WTO document G/LIC/N/2/JPN/4, 17  April 2018.  
45 Import approval for salmon and trout is valid for four months.  WT/TPR/S/ 438 • Japan  
 
- 50 - 
 Items  HS nos.  Application  Rationalea 
Propellant powders  36.01; 36.02; ex 36.03  All trading 
partners  Security  
Nuclear goods  26.12; ex 28.44; ex 81.09; 
84.01; ex 90.30  All trading 
partners  Security  
Weapons, ammunition, etc.  ex 84.11; ex 84.12; 87.10; ex 
88.02; ex 89.06; 93.01 -93.04; 
ex 93.05; 93.06; 93.07  All trading 
partners  Security  
Wild animals and plants in 
Appendix  I of the CITES Not provided  All trading 
partners  Compliance with CITES  
Wild animals and plants in CITES 
Appendices II and III  Not prov ided CITES 
non-members  Compliance with CITES  
Substances that deplete the ozone 
layer, specified hazardous wastes, 
and waste chemical weapons goods  Not provided  All trading 
partners, with 
certain 
exceptions Compliance with various 
national laws and 
international 
conventions/protocols  
Foreign cultural property  Not provided  All trading 
partners  Compliance with the Hague 
Convention for the 
Protection of Cultural 
Property in the Event of 
Armed Conflict  
Alcohol (of 90% volume or over)  2207.10  All tradin g 
partners  Compliance with Ethanol 
Business Act 
Rough diamonds  71.02  All trading 
partners  Compliance with Kimberly 
Process Certification 
Scheme and UN Security 
Council Resolution 1343  
Cultural property illegally acquired in 
Iraq 97.01 - 97.06  Iraq Compliance with 
UN Security Council 
Resolution 1483  
All goods from the Democratic 
People's Republic of Korea  All Democratic 
People's 
Republic of 
Korea  To take the measures 
decided by the Government  
Weapons and other items from 
Eritrea  Not provided  Eritrea  Compliance with 
UN Security Council 
Resolution 1907  
Weapons and other items from 
Libyan Arab Jamahiriya  Not provided  Libyan Arab 
Jamahiriya  Compliance with 
UN Security Council 
Resolution 1970  
Charcoal  44.02  Somalia  Compliance with 
UN Security Council 
Resolution 2036  
Chemical weapons and other items 
related to chemical weapons 
programme and cultural property 
illegally move from the Syrian Arab 
Republic  Includes 97.01 -97.06  Syrian Arab 
Republic  Compliance with 
UN Security Council 
Resolutions 2118 and 2199  
Mercury  HS 2805.40  Non-parties to 
the Minamata 
Convention  Compliance with Minamata 
Convention on Mercury  
Mercury -added products  Not provided  All trading 
partners  Compliance with Minamata 
Convention on Mercury  
a Abbreviations used in this column are the International Whaling Commission (IWC); the United 
Nations Convention on the Law of the SEA (UNCLOS); International Commission for the 
Conservation of Atlantic Tunas (ICCAT); Commission for the Conservation of Sout hern Bluefin Tuna 
(CCSBT); and the Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES).  
b The approval requirements do not apply to members of the Montreal Protocol and to the Chemical 
Weapons Convention for the goods th at they cover, respectively.  
c The Ethanol Business Act allows the importation of alcohol (with a 90% or higher alcoholic content) 
for testing, research or analysis (the Act was viewed at: 
https://www.japaneselawtranslation.go.jp/en/laws/view/2563 ). 
Source:  Import Trade Control Order. Viewed at: 
https://www.japaneselawtranslation.go.jp/en/laws/view/3827 ; and W TO document 
G/LIC/N/3/JPN/17, 9  October  2018.  
3.46.   Goods subject to import quotas are set out in Public Notice No.  170, 1966, of the METI, as 
last amended by Public Notice No.  101 of 2022.46 Products subject to import quotas are (i)  certain 
marine products (see  below); and (ii)  controlled substances listed in Group I and II of Annex  F 
 
46 METI Public Notice No.  170 of 1966 on Import Trade Control as amended by Public Notice No.  101 of 
2022. Viewed at : https://www.japaneselawtranslation.go.jp/en/laws/view/3827 . WT/TPR/S/ 438 • Japan  
 
- 51 - 
 (HFCs) of the Montreal Protocol on Substances that Deplete the Ozone Layer.47 With respect to the 
latter, the list of these controlled substances was adopted at the Montreal Protoc ol 28th Party Meeting 
held in October 2016. HFCs for which import restrictions came into effect on 1  January  2019 were 
added as controlled substances. According to the authorities, Japan uses import quotas that adhere 
to the WTO  Agreements.  
3.47.   Import quotas f or marine products are determined on an annual basis taking into 
consideration the balance of domestic supply and demand.48 The METI is responsible for determining 
quota volumes, based on consent from the Ministry of Agriculture, Forestry and Fisheries (MA FF), 
and for administering the import quota system. Announcements published in the Official Bulletin of 
Economy, Trade and Industry and the International Trade Bulletin specify quota volumes and 
application procedures.  
3.1.7   Anti-dumping, countervailing, and saf eguard measures  
3.1.7.1   Anti-dumping measures  
3.48.   Japan's legislative framework for anti -dumping duties consists of the Customs Tariff Act49, the 
Cabinet Order Relating to Anti -Dumping Duties, and the Guidelines for Procedures Relating to 
Anti-Dumping Duties.50 
3.49.   Anti-dumping investigations may be initiated when the Government considers it necessary, 
when an application for investigation has been submitted by a domestic industry to the Minister of 
Finance, or when there is enough evidence.51 The decision is publish ed as a public notice in the 
Official Gazette by the Minister of Finance. Investigations are carried out by a team composed of 
officials from the MOF's Office of Trade Remedy Affairs, the METI's Office for Trade Remedy 
Investigations, and the ministry in c harge of the relevant industry. The final decision to impose an 
anti-dumping duty is issued as a Cabinet Order. Provisional measures may be applied no earlier than 
60 days from the initiation of the investigation if affirmative preliminary determinations a re made. 
Provisional measures are in principle applied for up to four months, although a longer timeframe 
may apply upon requests of exporters representing a significant percentage of the trade involved. 
Exporters may offer an undertaking to revise prices or cease exports so that the injurious effect of 
the dumping on the domestic industry is eliminated. Anti -dumping duties can be imposed for a period 
not exceeding five years and may be extended thereafter following a review. Each extension of the 
measure m ay not be longer than five years.52 
3.50.   According to the authorities, as at July 2022, Japan imposed anti -dumping duties on 
electrolytic manganese dioxide originating in China, potassium hydroxide originating in the Republic 
of Korea and in China, polyethylene  terephthalate with a high degree of polymerization originating 
in China, carbon steel butt welding fittings originating in the Republic of Korea and in China, tris 
(chloropropyl) phosphate originating in China, and dipotassium carbonate originating in the  Republic 
of Korea.53 
3.1.7.2   Countervailing measures  
3.51.   The Customs Tariff Act, the Cabinet Order Relating to Countervailing Duties, and the 
Guidelines for Procedures Relating to Countervailing Duties form the legal and regulatory framework 
 
47 METI. Viewed at: 
https://www.meti.go.jp/policy/external_economy/trade_control/02_exandim/04_ozon/ozon_im_hfc.html . 
48 Imports, domestic production, consumption, and prices in the previous year, as well as projections for 
the coming year, are taken into account.  
49 Customs Tariff Act. Viewed at: 
http://www.kanzei.or.jp/kanzei_law/143AC0000000054.en.html#a9_2 . 
50 The Cabinet Order Relating to Anti -Dumping Duties. Viewed at: https://elaws.e -
gov.go.jp/search/elawsSearch/elaws_search/lsg0500/detail?lawId=406CO0000000416&openerCode=1 . 
51 Customs Tariff Act, Article  8(5).  
52 MOF, Guidelines for Procedures Relating to Anti -Dumping Duties . Viewed at:  
http://www.customs.go.jp/tokusyu/ad_gl.htm . A more detailed description of Japan's anti -dumping procedures 
and timeframes is contained in WTO document WT/TPR/S/351/Rev.1, 27  April 2017.  
53 WTO document G/ADP/N/357/JPN, 7 October 2021 . WT/TPR/S/ 438 • Japan  
 
- 52 - 
 for the application of co untervailing duties in Japan.54 
3.52.   Unchanged since the previous Review, under the Customs Tariff Act, investigations may be 
initiated when the Government considers it necessary, when an application has been submitted by 
domestic industry or when there is enou gh evidence with regard to, inter alia, the importation of the 
subsidized product and the material injury to the domestic industry caused by such importation. The 
decision to initiate an investigation is published as a public notice in the Official Gazette  by the MOF. 
The final decision to impose a countervailing duty must be made within approximately one year. 
Countervailing duties can be imposed for a period not exceeding five years, and each extension may 
not exceed five years.55 
3.53.   Japan did not apply any countervailing measures during the review period, nor did it initiate 
any countervailing investigations.  
3.1.7.3   Safeguards  
3.54.   The Customs Tariff Act, the Cabinet Order Relating to Emergency Duties, the Import Trade 
Control Order, and the Regulations to Govern Emerge ncy Measures comprise the legal framework 
for the application of safeguard measures in Japan. There were no changes to these laws and 
regulations during the review period, nor to safeguard investigation procedures and timeframes.56 
Japan has not applied an y safeguard measures during the review period, nor has it initiated any 
safeguard investigations.57 
3.55.   Japan reserved the right to use the special agricultural safeguard on 121 tariff lines 
(Section  4.1). All the RTAs to which Japan is signatory contain provi sions on bilateral safeguards. 
During the review period, bilateral safeguard investigations were not undertaken, and no safeguard 
measures were imposed under any of Japan's RTAs.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.56.   The C ustoms Act remains the principal piece of legislation covering customs procedures and 
documentation for exports (and imports).  Japan Customs remains responsible for implementing 
export procedures. Documentary requirements remained unchanged during the revi ew period and 
include the export declaration form (Customs form C -5010), invoices, and other documents as 
required by specific laws and regulations.  
3.57.   Japan Customs does not have any data concerning clearance times for exports. Japan 
Customs has digitalized a part of the procedures for payment of consumption tax and liquor tax on 
the departure of non -residents from Japan.  
3.2.2   Taxes, charges, and levies  
3.58.   There are no export taxes, charges, or levies applied by the Government or other public 
authorities in Japan.  
 
54 MOF, Cabinet Order Relating to Countervailing Duties. Viewed at ：https://elaws.e -
gov.go.jp/search/elawsSearch/elaws_search/lsg0500/detail?lawId=406CO0000000415&openerCode=1 . 
55 MOF, Guidelines for Procedures Relating to Countervailing Duty. Viewed at: 
http://www.customs.go.jp/tokusyu/cvd_gl.htm . The Minister of Finance, the Minister in charge of the relevant 
industry, and the Minister of Economy, Trade and Industry must jointly make a decision to initiate a n 
investigation. A more detailed description of Japan's countervailing procedures and timeframes is contained in 
WTO document WT/TPR/S/351/Rev.1, 20  June 2017.  
56 WTO document WT/TPR/S/351/Rev.1, 20  June 2017.  
57 MOF, Cabinet Order Relating to Emergency Duti es and the Regulations to Govern Emergency 
Measures. Viewed at: https://elaws.e -
gov.go.jp/search/elawsSearch/elaws_search/lsg0500/de tail?lawId=406CO0000000417&openerCode=1 .  
There is also a guideline regarding emergency duties. Japan Customs. Viewed at: 
http://www.customs.go.jp/kaisei/sonota/sggl_honbun.pdf . WT/TPR/S/ 438 • Japan  
 
- 53 - 
 3.59.   Japan does not levy fees for export declarations, and t here are no minimum export prices for 
any product in Japan.  
3.2.3   Export prohibitions, restrictions, and licensing  
3.2.3.1   Export prohibitions  
3.60.   During the review period, there were no changes to the list of  goods subject to export 
prohibitions. Under the Customs Act, export prohibitions apply to a limited range of products 
including narcotics and certain other drugs; child pornography; articles that infringe intellectual 
property rights (IPRs); and certain a rticles that constitute unfair competition under the Unfair 
Competition Prevention Act (essentially related to IPRs as well).58 
3.61.   In January 2020, the following changes were made to the (list of) goods/technologies subject 
to export control, in accordance with agreements of international export control regimes. Detonation 
engine, masks, and reticles specially designed for manufacturi ng optical sensors were added, while 
the specially designed components, controls, and accessories for "Numerically controlled" or manual 
machine tools specially designed for manufacturing gears were deleted from the list. "Fluorocarbon 
electronic cooling f luids" were changed to "Fluorocarbon fluids designed for electronic cooling", and 
electrically triggered shutters were removed from the list.  
3.62.   In April 2021, Japan extended a prohibition, until 2023, on all exports to (and imports from) 
the Democratic Peopl e's Republic of Korea; this was implemented under Article  48(3) of the Foreign 
Exchange and Foreign Trade Act59, which requires that exporters must obtain export approval from 
the Minister of Economy, Trade and Industry.60 
3.63.   Reflecting on the war in Ukraine,  Japan imposed export measures against the 
Russian  Federation and Belarus.61 
3.2.3.2   Export restrictions and licensing  
3.64.   Unchanged since the previous Review, the Trade and Economic Cooperation Bureau in the 
METI is responsible for export control policy and legislati on as well as participation in international 
export control discussions and negotiations.  
3.65.   The legal bases for applying export licensing requirements are found in, inter alia, the Foreign 
Exchange and Foreign Trade Act.  
3.66.   In Japan, a  bulk export licence syste m, which consists of several types of licences including 
General Bulk Licences, Special Bulk Licences, Specific Bulk Licen ces, Specific Bulk Licences for 
Returns, etc., and Specific Bulk Licences for Subsidiaries, simplifies the licensing procedures by 
allowing licensees to make multiple exports of controlled items under certain conditions related to 
 
58 Expor t restrictions are set out in Article  69-2 of the Customs Act. Viewed at: 
http://www.kanzei.or.jp/kanzei_law/329AC0000000061.en.html#c1 . The most recently amended version of  
the Customs Act is available at:  https://elaws.e -gov.go.jp/document?lawid=329AC0000000061 . 
59 Foreign Exchange and Foreign Trade Act (Last Version: Act No.  60 of 2019). Viewed at:  
https://www.japaneselawtranslation.go.jp/en/laws/view/3700 .  
60 According to the authorities, t he decision to extend the ban was taken at the Cabinet meeting on 
6 April 2021. METI (2021), "Extension of Ban on Imports from and Exports to North Korea , Pursuant to the 
Foreign Exchange and Foreign Trade Act", 6  April. Viewed at: 
https://www.meti.go.jp/english/press/2021/0406_001.html . 
61 Items and technologies covered by such export prohibition measures include (i)  listing items in the 
multilateral export control regimes (the Russian  Federation and Belarus) (entered into force on 
18 March  2022); (ii)  un-listing dual -use items that could b e considered for the development of military capacity 
(the Russian  Federation and Belarus) (18  March  2022); (iii)  export prohibition to military -related entities (the 
Russian  Federation and Belarus) (18  March  2022); entities added on 1  April, 17  May, 5  July, and 
26 September  2022); (iv)  items related to the development of advanced technology (the Russian  Federation) 
(20 May 2022); (v)  items related to oil refinery (the Russian  Federation) (18  March  2022; items added on 
20 May 2022); (vi) luxury goods (the R ussian  Federation) (5  April 2022), (vii) items that could contribute to 
the enhancement of Russian industrial capacities (the Russian  Federation) (17  June 2022); and (viii) items 
related to chemical weapons (the Russian  Federation) (7  October  2022). METI. Viewed at: 
https://www.meti.go.jp/policy/external_economy/trade_control/01_seido/04_seisai/crimea.html . WT/TPR/S/ 438 • Japan  
 
- 54 - 
 classification, destinations, and end -use.62 A bulk export licence may not be used, however, for 
exports to or via the countries that are subject to UN arms em bargoes. The validity of a licence is 
three years from the date of issue; it can be extended for another three years when applied for and 
approved by the METI.63 
3.2.3.2.1   Export Trade Control Order  
3.67.   Under the Export Trade Control Order, approval from the METI may be required to export 
certain goods and exports of certain goods to certain destinations.64 The prior approval of the MAFF 
is also required, or permission must be obtained under other laws/regulations, in a few cases.65 
Several controlled products/destinations may reflect Japan's international commitments or 
non-binding arrangements.66 Others may relate to export restrictions contained in other domestic 
laws/regulations.67 Specific goods subject to import licensing requi rements are listed in several 
tables appended to the Order.68 
3.68.   Conditions for obtaining an export licence have remained unchanged since the previous 
Review.69 Time required for issuing the licence is specified depending on each regulation.  
3.2.3.2.2   Foreign Exchange Order  
3.69.   In accordance with the Foreign Exchange Order, the METI may require permission to transfer 
outside Japan certain technologies (to certain destinations).70 In response to the war in Ukraine, 
Japan has banned transferring technologies related to the ex port measures (Section  3.2.3.1).  
3.2.3.2.3   Export quotas  
3.70.   Japan does not maintain any export quotas.  
 
62 METI (2022), Security Export Guidance: Int roduction , 2nd ed. Viewed at: 
https://www.meti.go.jp/policy/anpo/seminer/shiryo/guidance_english.pdf . 
63 METI. Viewed at: 
https://www.meti.go.jp/policy/anpo/law_document/tutatu/tutatu24fy/houkatu_toriatukaiyouryou.pdf . 
64 The Export Trade Control Order , containing the latest amendments from the Extra Cabinet Order  
No.19 of 2018, was  viewed at: 
https://www.meti.go.jp/english/policy/external_economy/trade_control/index.html . 
65 Export Trade Control Order, Article  2. 
66 These  international commitments and non -binding arrangements are the CITES Convention; the Basel 
Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal; the 
Convention on the Prohibition of the Development, Manufacture, Stoc kpiling and Use of Chemical Weapons and 
on their Destruction; the Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and 
Transfer of Ownership of Cultural Property; the Convention on the Safety of the Management of Spent Fuels  
and Radioactive Wastes; the Rotterdam Convention on the Prior Informed Consent Procedure for Certain 
Hazardous Chemicals and Pesticides in International Trade; the Minamata Convention on Mercury; the 
Wassenaar Arrangement on Export Controls for Convention al Arms and Dual -Use Goods and Technologies; the 
Missile Technology Control Regime; the Treaty on the Non -Proliferation of Nuclear Weapons; the Nuclear 
Suppliers Group; the Australia Group; the United Nations Convention Against Illicit Traffic in Narcotic Drugs 
and Psychotropic Substances; the Montreal Protocol on Substances that Deplete the Ozone Layer; and the 
Kimberley Process Certification Scheme.  
67 Poisonous and Deleterious Substances Control Act, Japanese Law Translation. Viewed at: 
https://www.japaneselawtranslation.go.jp/en/laws/view/3387 .  
68 Cabinet Order on Export Trade Control, Appended Table  1, Appended Table  2, Japanese Law 
Translation. Viewed at: https://www.japaneselawtranslation.go.jp/ja/laws/view/4072#je_apxt1  and 
https:// www.japaneselawtranslation.go.jp/ja/laws/view/4072#je_apxt2 . 
69 To obtain an export licence, the exporter must apply to the METI using the relevant application form 
and supporting documents, including an end -use certificate for the end  user. In practice, li cences are refused 
for military weapons and certain materials that can be used in developing weapons of mass destruction. Japan 
permits arms exports to partner countries for joint development , provided the government of the 
country -of-destination obtained consent from Japan before any item exported from Japan was transferred to a 
third country. For dual -use items, licence approval depends on the M ETI's risk assessment, which is based on 
the destination and the end -user. 
70 The latest Order was published on 1 0 May 2022.  WT/TPR/S/ 438 • Japan  
 
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 3.2.4   Export support and promotion  
3.2.4.1   Export subsidies  
3.71.   According to the authorities, Japan has no export subsidy programmes in place.  
3.2.4.2   Taxation and special customs procedures  
3.72.   According to the authorities, Japan does not provide fiscal support measures for exports in 
areas such as National Strategic Special Zones or hozei  areas.  
3.73.   The hozei  area system  (Table  3.5) allows for the storage, processing, manufacturing, or 
display of foreign goods (i.e. goods that have arrived in Japan from overseas but that have not 
received an import permit from the Director -General of Customs, hence duties and taxes would not 
have been  paid).  
Table  3.5 Hozei  areas and features  
Types  Principal features  
 Length of storage  Number 
(2022)  
Designated 
bonded areas  Loading/unloading, transport, and temporary 
storage of foreign goods  1 month  89 
Customs 
warehouses  Loading/unloading, transport, and long -term 
storage of foreign goods  2 years (may be 
extended)  4,636  
Customs 
factories  Processing and manufacturing using foreign goods 
as material  2 years (may be 
extended)  205 
Customs display 
areas  Display and use of foreign goods  Decided by the Director -
General of Customs  .. 
Integrated 
bonded areas  Loading/unloading, transport long -term storage, 
processing and manufacturing, and display of 
foreign goods  2 years (may be 
extended)  4 
.. Not available.  
Source:  Japan Customs, Outline of the Customs Bonded System . Viewed at:  
https://www.customs.go.jp/english/c -answer_e/sonota/9203_e.htm . 
3.74.   Japan's Customs Transportation  System allows for foreign goods to be transported between 
hozei  areas, ports, and airports. The approval of the Director -General of Customs is required.71 
3.75.   Japan's system for the reduction, exemption, refund, and repayment of customs duty under 
the Customs  Tariff Act has remained unchanged since the previous Review.72 
3.2.4.3   Free zones and free ports  
3.76.   The only free trade zones (FTZs) in Japan exist in Naha/Okinawa District and Uruma/Okinawa 
District in accordance with the Act on Special Measures for the Promotion a nd Development of 
Okinawa.  Some changes were made to the Act and entered into force on 1  April 2022.73 The 
amendment stipulates, inter alia, a new application system for tax incentives in the FTZs. Japan 
views that this new application system helps implement development policies in Okinawa in more 
organized and effective manners. Incentives offered to domestic and foreign companies have 
remained unchanged since the previous Review.  
3.77.   The authorities state that Japan has no plans to establish new FTZs.  
 
71 Japan Customs, Outline of the Customs Bonded System . Viewed at: 
http://www.customs.go.jp/english/c -answer_e/sonota/9203_e.htm . 
72 Japan Customs, Systems for Reducti on, Exemption, Refund and Repayment of Customs Duty . Viewed 
at: https://www.customs.go.jp/english/c -answer_e/imtsukan/1603_e.htm . 
73 Cabinet Office. Viewed at: https://www8.cao.go.jp/okinawa/etc/houritsu/houritsu_gaiyou.pdf . WT/TPR/S/ 438 • Japan  
 
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 3.2.4.4   Export promotion  
3.78.   The Japan External Trade Organization (JETRO) remains the official agency responsible for 
promoting exports through information, research, support for and participation in international trade 
fairs, and other activities to promote exports from, and investment in, Japan.74 Its annual budget in 
FY2021 was JPY  54,002  million; it has a staff of around 1,860, and has regional offices in 
55 countries.75 JETRO provides an Internet matching services for Japanese agricultural and food 
products throu gh the Japan Agricultural and Foodstuff Exports in e -Venue.76 The Japan Food Product 
Overseas Promotion Center, established in 2017, has a mandate to brand, raise awareness of, and 
boost the exports of Japanese agricultural, forestry, fishery, and food pro ducts and to create a 
stronger platform for overseas business -to-consumer promotions.  
3.79.   During the review period, JETRO continued to work on digitalization, such as building new 
online negotiation systems and utilizing e -commerce, and provided new services, such as online 
business meetings and overseas showrooms displaying samples of Japanese food products, in 
response to the COVID -19 pandemic .77 
3.80.   Under the Consortium for the New Export Nation, JETRO's experts continue to provide advice 
to Japanese SMEs on their exports and overseas investment in terms of, inter alia, regulations of 
foreign countries and contract drafting in English.78 
3.2.5   Export financ e, insurance, and guarantees  
3.81.   The Nippon Export and Investment Insurance (NEXI) and the Japan Bank for International 
Cooperation (JBIC) remain the official export credit agencies of Japan.  
3.82.   NEXI is a special stock company wholly owned by the Government. In D ecember 2020, NEXI 
announced some initiatives to actively promote projects, with a focus on contributing to global 
carbon neutrality, solving social issues, and achieving the Sustainable Development Goals . In June 
2022, the Trade and Investment Insurance A ct was revised to, inter alia, reflect changes in the 
environment surrounding overseas transactions by Japanese companies  and to establish new 
insurance products; the revision entered into force in July 2022.79 According to the authorities, the 
revised Act  allows NEXI to provide a better environment that would enable its customers to expand 
their global business in a more stable manner.  
3.83.   In conducting its business, NEXI provides trade and investment insurance with the objective 
of breaking even financially. If NEXI faces funding difficulties, the Government may step in to ensure 
insurance claims are paid80; during the review period, no such Governmental countermeasures were 
required. NEXI offers several insurance products and covers both political and commercial risks 
(Table  3.6).81 Foreign -owned companies, irrespective of shares of foreign ownership, are eligible.  
 
74 JETRO is an incorporated administrative agency under the Japan External Trade Organization 
Incorporated Administrative Agency  Act of 2002.  
75 JETRO. Viewed at: https://www.jetro.go.jp/jetro/profile . 
76 JETRO (2017), "Establishment of Japan Agricultural & Foodstuff Exports (JAFEX)", 3  February . Viewed 
at: https://www.jetro.go.jp/en/news/releases/2017/a3e08559704012dd.html . 
77 JETRO, Annual Business Report (FY2021) . Viewed at: 
https://www.jetro.go.jp/ext_images/jetro/profile/annual_report/jigyou2021.pdf . 
78 JETRO, Consortium for the New Export Nation . Viewed at: https://www.jetro.go.jp/consortium/ . 
79 METI. Viewed at: https://www.meti.go.jp/press/2022/06/20220614001/20220614001.html . 
80 These governmental count ermeasures are prescribed in the Trade and Investment Insurance Act.  
81 Both trade and investment insurance products are described in more detail in NEXI's 2021 annual 
report. Viewed at: https://www.nexi.go.jp/corporate/booklet/pdf/annual2021 -e.pdf. WT/TPR/S/ 438 • Japan  
 
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 Table  3.6 NEXI trade insurance products, 2021  
(JPY million)  
Insurance 
type Description  Premium income 
2021  Claims paid 
2021  Underwritten  
amount  
Export credit 
insurance  Insurance for export, 
intermediary trade and 
technical cooperation:  coverage 
of risks such as pre -shipment 
risks or non -payment risks 
pertaining to export, 
interm ediary trade and 
technical cooperation 
conducted by Japanese 
exporters  
Insurance for licence export: 
coverage of the non -payment 
risks that affect Japanese 
companies related to licence 
fees (i.e. royalties on patents, 
know -how, copyright, etc.)  13,230  1,217  5,661,939  
Trade 
insurance for 
standing 
orders from 
specific buyers  Coverage of risks such as 
pre-shipment risks or 
non-payment risks that affect 
Japanese companies that 
continually export or conduct 
intermediary trade with specific 
buyers  705 32 21,726  
Comprehensive 
export 
insurance with 
simplified 
procedure  Coverage of risks such as 
pre-shipment risks or 
non-payment risks that affect 
Japanese companies that 
continually and repeatedly 
export or conduct intermediary 
trade with numerous buyers  253 0 105,888  
Export credit 
insurance for 
SMEs and 
agriculture, 
forestry, and 
fisheries 
sector s Coverage of non -payment risks 
pertaining to exports conducted 
by Japanese SMEs and 
organizations related to the 
agriculture, forestry, and 
fishery sector s 149 6 16,029  
Export bill 
insurance  Coverage of non -payment of 
documentary bill or exchange 
purchased by Japanese 
commercial banks  100 22 8,787  
Prepayment 
import 
insurance  Coverage of risks that affect 
Japanese importers that are 
unable to receive the refund of 
their payment made on 
advanced payment terms in the 
event the shipment does not 
arrive  1 149 671 
Source:  NEXI, Annual Report FY2021 . Viewed at: https://www.nexi.go.jp/en/publications.html ; and 
information provided by the authorities.  
3.84.   The JBIC, established under the Japan Bank for International Cooperation Act of 2011, is 
wholly Government -owned. It has a main mandate to provide loans and guarantees and to engage 
in equity participation, with a view to promoting overseas development and  securing resources that 
are important for Japan, maintaining and improving the international competitiveness of Japanese 
industries, promoting overseas business es whose objectives are to preserv e the global environment, 
and preventing disruptions to the i nternational financial order or taking appropriate measures with 
respect to damages caused by such disruptions. The mandate has not changed since the previous 
Review.  
3.85.   A small share of the JBIC's total lending and investments is geared towards providing exp ort 
loans, largely bank -to-bank loans and buyer's credits (some JPY  60.9 billion in FY2021, representing 
3% of all lending , investments, and guarantees committed in that year).  According to the authorities, WT/TPR/S/ 438 • Japan  
 
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 export loans are provided based on the conditions  of the Organisation for Economic Co -operation 
and Development (OECD ) Arrangement on Officially Supported Export Credits; export loans are also 
available from the private sector. Most of the JBIC's lending/investment activity is not trade -related: 
overseas  investment loans accounted for 77% of lending and other commitments in FY2021; untied 
loans, 2%; guarantees, 4%; and equity participations, 2%.  
3.86.   The JBIC's funding comes from different sources , mostly government accounts or with 
government guarantees inclu ding Government -Guaranteed Foreign Bonds and borrowing from the 
Fiscal Investment and Loan Program (FILP) and the Foreign Exchange Fund Special Account.82 
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.3.1.1   Taxation and tax incentives  
3.87.   In Japan, direct taxes, which include corporate tax and individual income tax, accounted for 
58.4% of the national government tax revenue in FY2021 (Table  3.7). Indirect taxes include 
consumption tax (10% or 8%) and excise taxes at variable rates (e.g. on automobiles, gasoline, 
tobacco, and liquor), and accounted for the rest of total government revenue in the same year.  
3.88.   Japan's taxes are classified into national, prefectural, and municipal taxes (Table  A3.1).  
3.89.   All income earned in Japan is taxable, both for  residents and non -residents, and the 
corporation tax rate is the same for foreign and domestic corporations. All internal indirect taxes 
apply at the same rate for domestic and imported goods. Foreign and domestic investors have the 
same access to tax inc entives , including at the municipal level.  
Table  3.7 Tax revenue, FY2017 -FY2021  
(JPY million)  
    FY2017  FY2018  FY2019  FY2020  FY2021  
Total for general account  58,787,489  60,356,385  58,441,533  60,821,604  67,037,885    
(% of total)  
Direct tax  57.8 58.8 56.8 55.8 58.4 
Income tax  30.3 31.0 30.8 29.6 29.7 
Corporation tax  19.2 19.2 17.4 17.3 19.0 
Inheritance tax  3.7 3.6 3.7 3.6 3.9 
Indirect tax  42.2  41.2 43.2 44.2 41.6 
Consumption tax  28.1 27.5 29.5 32.3 30.5 
Gasoline tax  3.8 3.7 3.7 3.2 2.9 
Liquor tax  2.1 2.0 2.0 1.7 1.6 
Stamp revenue  1.7 1.7 1.6 1.4 1.3 
Customs duty  1.6 1.7 1.5 1.3 1.2 
Tobacco tax  1.4 1.3 1.4 1.3 1.3 
Petroleum and coal tax  1.1 1.1 1.0 0.9 0.9 
Motor vehicle tonnage tax  0.6 0.6 0.6 0.6 0.5 
Promotion of power resources 
development tax  0.5 0.5 0.5 0.5 0.4 
Aviation fuel tax  0.08 0.08 0.08 0.01 0.04 
International tourist taxa n.a. 0.01  0.07  0.00 0.00 
Tonnage tax  0.02  0.02  0.02  0.01 0.01 
Liquefied petroleum gas tax  0.01  0.01  0.01  0.01 0.01 
n.a. Not applicable.  
a Imposed on travellers departing Japan as of 7  January  2019.  
Note:  FY2017 -FY2021 settled amount.  
Source:  MOF, Survey of the Settled Amount of Tax and Stamp Revenues . Viewed at: 
https://www.mof.go.jp/english/policy/tax_policy/account/index.htm . 
 
82 For more information on the Government's Fiscal Investment and Loan Program, see JBIC , Annual 
Report 2021 , p. 24. Viewed at: https://www.jbic.go.jp/en/information/annual -report/pdf/2021E_m01.pdf . WT/TPR/S/ 438 • Japan  
 
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 3.3.1.2   Tax incentives  
3.90.   Domestic support to production and trade is offered to foreign and domestic com panies 
through grants, tax incentives, and loan schemes (Table  3.8). The objective of the support is to 
encourage wage hikes, capital investments, and research and development, as well as to support 
SMEs and the agriculture and fisheries sectors.  
3.91.   The OECD framework83, agreed on in 2021, plans the reallocation of taxing rights to market 
jurisdictions and a minimum tax rate of 15% for corporations. Under the current corporation tax 
regime in Japan, corporation tax, the statutory rate of which is 23.2%, and ot her taxes, including 
prefectural and municipal taxes, are applied. Japan participates in the agreement to address the tax 
challenges arising from the digitalization of the economy. The authorities state that Japan  is 
contributing to ongoing international d iscussions on the two -pillar solution, while considering 
domestic legislation regarding Pillar Two.  
Table  3.8 Selected tax incentives, grants, and loan schemes available to both local and 
foreign -affiliated co mpanies, 2021  
Title Overview  
Employment promotion 
taxation  Establishment/expansion of headquarters functions within regional revitalization 
areas (including FDI in Japan): Tax credit of up to JPY  300,000 per new employee.  
Relocation of headquarters functions within regional revitalization areas from the 
23 wards of Tokyo: Tax credit of up to JPY  900,000 per new employee.  
Capital investment tax cut 
(tax cut for offices)   Establishment/expansion of headquarters functions within regional revitalization 
areas (including FDI in Japan): Tax measures: 15% special depreciation or 4% tax 
deduction on the acquisition value of specified business facilities.  
Relocation of headquarter s functions within regional revitalization areas from the 
23 wards of Tokyo:  Tax measures: 25% special depreciation or 7% tax deduction on 
the acquisition value of specified business facilities.  
National Strategic Special 
Zone Special regulatory measures, tax treatment (for corporate income tax), and 
financial/monetary support are available for companies with business plans in 
National Strategic Special Zones.  
Comprehensive Special Zone 
(CSZ)  Special regulatory measures, tax credits (for corporat e income tax), and 
fiscal/financial support are available for companies with business plans in designated 
CSZs. The objective of the CSZs is to provide tailored, integrated support for 
comprehensive and strategic challenges in selected regions.  
Special Zo nes for 
Reconstruction  Special measures, such as deregulation and tax incentives, are available for 
companies with business plans in disaster -affected areas.  
Tax exemption or unequal 
taxation of local taxes  Confirmed companies may be able to receive exemp tions or reductions on property 
acquisition taxes and property taxes by local authorities.  
Tax deduction system for 
wage and productivity 
improvement  Tax incentives allowing part of an increase in pay and allowance by large companies 
to be deducted from t heir corporate tax (national tax) of the relevant fiscal year.  
Applies to the fiscal years that start from 1  April 2018 to 31  March  2021.  
Special taxation measure 
regarding capital investment  Taxation measures: (i) machinery: 40% -50% special depreciation, 4% -5% tax 
deduction; (ii) appliance, fixtures: 40% -50% special depreciation, 4% -5% tax 
deduction; and (iii) buildings, attached facilities, and structures of specific business 
facilities: 20% special depreciation, 2% tax deduction. Total acqu isition cost subject 
to support: JPY 8 billion. Maximum amount of tax deduction: 20% of the amount of 
corporate or income tax in the period concerned.  
Applies to the fiscal years that start from 1  April 2021 to 31  March  2023.  
Research and Development 
(R&D) Tax Credit System  Tax incentives through which a certain rate of R&D expenses conducted by a private 
company as part of its business can be deducted for its corporate tax (national tax) 
of the relevant fiscal year.  
Total expenditure -based tax credit syst em (the current tax credit rate): 6% -14% in 
principle; 12% -17% for SMEs.  
Promotion of Open 
Innovation  Tax credit for the total amount of expenses for joint or contract research with 
universities, national research institutes, R&D venture corporations, and  others 
including large corporations.  
Tax credit = total amount of special R&D expenses  multiplied by 0.2, 0.25, or 0.3 . 
Special zone for promoting 
investment in reconstruction 
of industry in Fukushima  Companies that contribute to maintaining employment o pportunities in 
reconstruction industry accumulation areas are eligible to apply for a special tax 
measure when they make capital investments or employ disaster victims.  
 
83 OECD (2021), Statement on a Two -Pillar Solution to Address the Tax Challenges Arising from the 
Digitalisation of the Economy , 1 July. Viewed at: https://www.oecd.org/tax/beps/statement -on-a-two-pillar-
solution -to-address -the-tax-challenge s-arising -from-the-digitalisation -of-the-economy -july-2021.htm .  WT/TPR/S/ 438 • Japan  
 
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 Title Overview  
Green Innovation Fund  
 Towards the goal of achieving Carbon Neutrality by 2050, the Government has 
established a JPY  2 trillion Green Innovation Fund under the FY2020 Tertiary 
Supplementary Budget and decided to assign the New Energy and Industrial 
Technology Development Organization (NEDO) to its operation. Among the priority 
fields for which implementation plans have been formulated within the Green Growth 
Strategy, where policy effects are significant and long -term continuous support is 
required to realize social implementation, the Government will provide continuous 
support to comp anies and other organizations committed to take on challenges 
towards achieving specific goals from R&D through demonstration to social 
implementation for the next 10 years.  
Investment Incentives for 
Promoting Carbon Neutrality  Special depreciation of 50 % or a tax credit of (5% or 10%) of the cost of purchase 
of certain assets. Such assets must either (i)  realize both decarbonization and 
improved added value of production process; or (ii)  be used in production equipment 
of products with high decarbonizati on effects. To qualify for this incentive, applicants 
must submit business adaption plans and have them certified by the respective 
authorities. The maximum value of the asset eligible for this incentive is 
JPY 50 billion.  
Investment Incentives for 
Promot ing Digital 
Transformation  Special depreciation of 30% or a tax credit (3% or 5%) of the cost of certain assets 
(e.g. software, machinery, equipment) newly invested to accelerate the digitalization 
of operations. To qualify for this incentive, applicants must submit business plans to 
describe their digital transformation based on the newly installed equipment and 
have them certified by the METI. The maximum value of the asset eligible for this 
incentive is JPY  30 billion. As at September 2022, t his measure applied until 
31 March  2023.  
Source:  Information provided by the authorities; and JETRO, Incentive Programs . Viewed at: 
https://www.jetro.go.jp/en/invest/support_pro grams/incentive/ . 
3.3.1.3   Subsidies and other assistance programmes  
3.92.   In June 2021, Japan notified a list of 53 specific subsidy programmes to the WTO's Committee 
on Subsidies and Countervailing Measures under Article  XVI:1 of GATT  1994 and Article  25 of the 
Agreeme nt on Subsidies and Countervailing Measures. The list includes both old and new schemes 
with different objectives mainly to support industry, finance, and agriculture, and to strengthen and 
stimulate the domestic economy.84 
3.93.   During the review period, the METI took several measures for mitigating the impacts on 
companies of the COVID -19 pandemic and for supporting such companies.85 
3.3.2   Standards and other technical requirements  
3.3.2.1   Legal and institutional framework  
3.94.   Standards and technical regulations (including con formity assessment procedures) are 
governed by several laws and regulations including the Industrial Standardization Act (Table  3.9). 
Japan's Notification Authority under the Agreement on Technical Barriers to Trade (TBT) remains 
the International Trade Di vision of the Ministry of Foreign Affairs (MOFA).  
3.95.   In many sectors, the Japanese authorities have the exclusive power for formulating and 
adopting technical regulation. Several ministries oversee these regulations in their respective areas 
of competence. Th e METI and its subordinate entities include the Japanese Industrial Standards 
Committee; the Ministry of Internal Affairs and Communications (MIC) (for telecommunications 
 
84 Full details of the different subsidy schemes as notified by Japan are provided in WTO document 
G/SCM/N/372/JPN, 30  June 2021.  
85 The following measures were taken by the METI: Subsidy Program for Sustaining Businesses  
(terminated on 15  February  2021); subsidies for Monozukuri  (special quota for coronavirus measures 
terminated on 8  February  2022); subsidies for sustainability (special quota for coronavirus measures 
terminated on 9  March 2022); financing supports (loans and guarantees) to compagnies; subsidy program to 
promote teleworking of workers; support program for companies taking countermeasures against the novel 
coronavirus disease; deregulatory measures in import and export pr ocedures as a response to the novel 
coronavirus disease; support measures for individual business operators and freelancers affected by the novel 
coronavirus disease; support program of website for online class services provided by Ed Tech companies for 
students during school closure, Subsidy program for Projects on Navigation of Information on Private Support 
Services, and t echnical support provided by ICT companies to organizations which intend to introduce telework 
options. METI, Outline of METI's Suppor t Measures . Viewed at: https://www.meti.go.jp/english/covid -
19/index.html#:~:text=METI%20has%20been,introduce%20telework%20opti ons. WT/TPR/S/ 438 • Japan  
 
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 terminal devices and radio equipment); the MAFF (for foodstuffs, and agricultural and  forestry 
products); the Ministry of Health, Labour and Welfare (MHLW) (for drugs and medical devices); and 
the Consumer Affairs Agency (CAA) (for labelling).86 
3.96.   Japan has regularly notified its draft technical regulations, ordinances, and conformity 
assess ment procedures to the WTO TBT Committee.87 In the TBT Committee, no specific trade 
concerns were raised by Members regarding TBT measures maintained or planned by Japan.  
3.97.   Japan is a member of the International Organization for Standardization (ISO), the 
International Telecommunication Union, the International Electrotechnical Commission, the 
International Accreditation Forum, the Bureau international des poids et mesures , the Organi sation 
internationale de métrologie légale , and the International Laboratory Accreditation Cooperation, as 
well as several regional standards and accreditation bodies.  
3.98.   The authorities indicate that Japan has concluded MRAs with the European  Union, the 
Philippines, Thailand, the United  Kingdom, and the Unite d States. Under an MRA, the importing 
country will recognize the conformity assessment carried out in the exporting country, thus 
concerned products will benefit from facilitated placing of goods on the market.  
Table  3.9 Main laws on standards and technical regulations, September 2022  
Legislation/Agency  Purpose  
Industrial Standardization Act 1949 
/METI  Applies to all products except medicines, agriculture and fertilizer 
chemicals, silk yarn, foodstuffs, agricultural and forestry products,  
data, services, and management systems.  
The law establishes the Japanese Industrial Standards (JIS) Committee and 
the JIS Mark Scheme and provides the legal basis for standards, 
certification, and accreditati on of certification bodies and laboratories.  
Consumer Product Safety Act 1973 
/METI Stipulates that: (i) a narrow range of specified products must comply with 
technical requirements; and (ii) importers and manufacturers of certain 
products must adhere to maintenance -related requirements. It also 
provides the legal basis for reporting product accident information for 
consumer products.  
Act on Securing Quality, Efficacy and 
Safety of Products including 
Pharmaceuticals and Medical Devices 
1960/MHLW  Regulate s the manufacture, import, and sale of pharmaceuticals; and 
medical devices; regenerative and cellular therapy products; gene therapy 
products; and cosmetics.  
Act on Japanese Agricultural 
Standards 1950 /MAFF  Applies to foods, drinks, oils, and fats, as we ll as other agricultural, 
forestry, livestock, and fishery products and products made from them 
except drugs, cosmetics, and regenerative medical products . It provides 
the legal basis for the Japanese Agricultural Standards (JAS) and criteria 
for adopting standards, quality grading, certification, and accreditation of 
certifying bodies, laboratories, and inspectors.  
Building Standard Law/Ministry of 
Land, Infrastructure, Transport and 
Tourism 1950/MLIT  Applies to buildings and their construction. It provides for the 
establishment of standards for construction of buildings, including 
fireproofing and procedures for ins pection and certification of buildings, and 
type approval.  
Electrical Appliances and  Materials 
Safety Act 1961/METI  Applies to electrical appliances and materials. The Act regulates the 
manufacture and sale of electrical appliances and requires manufacturers 
and importers of these appliances to register with METI and ensure 
conformity with technical requirements.  
Measurement Act 1992 /METI Establishes the units of the International System Unit as the measurement 
units in Japan and provides the legal basis to apply and verify them and 
certify devices for their measurement.  
Food Labelling Act 2013/CAA  Ensures proper food  labelling by establishing standards and specifying 
other necessary information regarding the labelling of food intended for 
sale. 
Source:  Information provided by the authorities; and METI. Viewed at: 
https://www.meti.go.jp/policy/economy/hyojun -kijun/jisho/jis.html . 
 
86 A fuller description of the subentities responsible for TBT issues is contained in WTO document 
WT/TPR/S/351/Rev.1, 20  June 2017, Box 3.2.  
87 Between January 2017 and early September 2022, Japan submitted more than 120 regular 
notifications to the W TO TBT Committee; the 60 -day period for comments was observed for 77 regular 
notifications. The types of measures notified to the WTO included 69 technical regulations (Article  2.9) and 
1 conformity assessment procedure (Article  5.6). Japan notified 13 urg ent technical regulations (Article  2.10); 
the notified measures were mainly related to consumer and human health protection. WTO documents 
G/TBT/N/JPN/543 -746.  WT/TPR/S/ 438 • Japan  
 
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 3.99.   The overall structure of Japan's institutional framework on standards and technical regulations 
has remained largely unchanged since its previous Review. During the review period, a few 
amendments were made to some of these regulations, and relevant notifi cations have been 
submitted to the TBT Committee.88 Between January 2020 to April 2022, 28 TBT notifications 
(including 15 addendum notifications) were submitted regarding amendment of the technical 
regulations, based on the relevant laws and regulations o f, inter alia, the Radio Act, the Broadcasting 
Act, and the Telecommunications Business Act.89 
3.100.   An amendment to the ordinance to the Act on Securing Quality, Efficacy and Safety of 
Products Including Pharmaceuticals and Medical Devices was adopted in Januar y 2021. The 
amendment introduced a system where marketing authorization holders basically use electronic 
methods such as barcodes when providing information on pharmaceuticals and medical devices.90 
3.101.   According to the authorities, during the review period, J apan took measures regarding 
regulations on vehicle safety and environmental protection, such as the introduction of the 
international regulations into its national regulations regarding International Whole Vehicle Type 
Approval, under the United Nations E conomic Commission for Europe (UNECE) World Forum for 
Harmonization of Vehicle Regulations.  
3.3.2.2   Standards  
3.102.   In Japan, there are two types of standards: the Japanese Industrial Standard (JIS) and the 
Japanese Agricultural Standard (JAS). The elaboration and draft ing process of standards did not 
change during the review period.91 
3.103.   As at 31  March  2022, there were 10,918 JISs (Table  3.10). According to the authorities, the 
number of JIS s with corresponding international standards was 6,341 . The percentage of those JISs 
that were harmonized with international standards was 97%.  
3.104.   According to the authorities, the reason why there is a remaining gap of 3% in the 
harmonization of JIS with international standards is because of (i)  protection of human health, 
safety, or the e nvironment; (ii)  fundamental climatic or other geographical factors; (iii)  fundamental 
technological or infrastructural problems; or (iv)  the corresponding ISO or IEC international 
standards are inappropriate.  
3.105.   Between April 2019 and March 2022, 13 new JASs  were established, 28 were revised, and 
none were abolished. The authorities indicate that 77% of JASs are harmonized with international 
standards.  
 
88 WTO documents, G/TBT/N/JPN/722 -746. 
89 The Ordinance for Enforcement of the Radio Act will be amended to introduce Ku -band 
non-geostationary satellite communications systems by satellite constellation around 1,200  km altitude. The 
basic law is the Radio Act (1950 Law No.  131). Viewed at:  
http://www.japaneselawtranslation.go.jp/law/detail/?id=3205&vm=04&re=01&new=1 . The amendment will be 
published in Kanpo, the Official Gazette , when adopted. WTO documents G/TBT/N/JPN/722 -746. 
90 WTO document G/TBT/N/JPN/683, 6  January  2021.  
91 JISs are drafted by interested parties or by industrial associations entrusted by the relevant ministry, 
while JASs are proposed either by the MAFF or by interested parties and are drafted by the MAFF. The d raft is 
sent to the appropriate minister and thereafter the Japan ese Industrial Standards Committee (JISC) 
undertakes its deliberation/consultation work, which includes a 60 -day period for public comment. Once 
completed, the draft is reported to the releva nt minister to be established or revised as a JIS and notified in 
the Official Gazette. To speed up the development of a JIS, amendments to the Industrial Standards Act in 
2019 (see above) have enabled JIS drafts to be proposed by private associations that  are accredited by the 
relevant minister as having expertise in developing JISs, thus skipping the Japan Standard Industrial 
Classification ( JSIC) deliberation phase (the 60 -day public comment period remains a requirement).91 JISs are 
reviewed annually, whi ch can result in withdrawal of outdated standards. For details, see WTO document 
WT/TPR/S/310/Rev.1, 6  May 2015, pp.  34-40. WT/TPR/S/ 438 • Japan  
 
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 Table  3.10 JISs established, revised, and withdrawn, April 2019 -March 2022  
 
Number of 
JISs newly 
established  Number of 
JISs revised  Number of 
JISs 
withdrawn  JISs in force 
at the end of 
March 2022  
Civil engineering and architecture  8 22 0 622 
Mechanical engineering  23 42 27 1,814  
Electronic and electrical engineering  20 55 14 1,790  
Automotive engineering  1 8 3 357 
Railway engineering  2 3 0 158 
Shipbuilding  2 6 0 394 
Ferrous materials and metallurgy  7 37 7 469 
Non-ferrous materials and metallurgy  0 5 2 391 
Chemical engineering  11 43 10 1,786  
Textile engineering  1 6 0 243 
Mining  0 8 1 170 
Pulp and paper  0 1 0 81 
Management system  2 2 1 105 
Ceramics  3 8 3 389 
Domestic wares  3 8 1 212 
Medical equipment and safety 
appliances  3 16 21 565 
Aircraft and aviation  1 0 0 10 
Information processing  5 8 8 454 
Service  7 0 0 12 
Miscellaneous packing,  welding,  
radioactivity, etc.  10 40 5 896 
Total 109 318 103 10,918  
Source:  Information provided by the authorities.  
3.3.2.3   Technical regulations  
3.106.   The authorities state that the drafting of technical regulations in Japan follows international 
requirements and recommendations.92 For instance, concerning vehicle safety and environmental 
protection, Japan has harmonize d its national regulations with the International Whole Vehicle Type 
Approval under the UNECE World Forum for Harmonization of Vehicle Regulations.  
3.107.   The authorities indicate that no data are available on the number of technical regulations in 
force.  
3.3.2.4   Conform ity assessment and inspection  
3.108.   The authorities indicate that there were no new developments regarding conformity 
assessments procedures in Japan during the review period.  
3.109.   Manufacturers of electrical and consumer products overseas may undergo conformity 
assessment and certification conducted in foreign countries by foreign -registered conformity 
assessment bodies, in accordance with relevant laws.93 According to the authorities, under the 
Consumer Product Safety Act, the Electrical Appliances and Materials Saf ety Act, the Act on the 
Securing of Safety and the Optimization of Transaction of Liquefied Petroleum Gas, and the Gas 
Business Act, a foreign conformity assessment body needs to apply for registration with the Japanese 
Government in order to be registered  as a foreign -registered conformity assessment body under the 
Act. Upon receipt of the application, the Government shall register the foreign conformity 
assessment body as a foreign -registered conformity assessment body when the Government 
confirms that th e foreign conformity assessment body satisfies all the provisions of the Act, including 
conformity with international standards for product certification bodies.  
3.3.2.5   Labelling requirements  
3.110.   Different laws organize labelling requirements in Japan, including the Consumer Product 
Safety Law; the Fertilizer Regulation Act; the Food Labelling Act;  the Electrical Appliances and 
 
92 WTO document WT/TPR/M/351/Add.1, 27  April 2017.  
93 These include the Electrical Appliances and Materials Safety Act and the Consum er Product Safety Act.  WT/TPR/S/ 438 • Japan  
 
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 Materials Safety Act; the Household Goods Quality Labelling Act; the Industrial Safety and Health 
Act; and the Act Concerning Business Associations and Measures for Securing Revenue from the 
Liquor Tax.  
3.111.   During the review period, a few amendments were made to some of laws and regulations 
governing labelling requirements. The Food Labelling Standards, as stipulated by the Food Labelling 
Act, was amended several times through different pieces of legislation. Pursuant to Article  8 of the 
amended Food Sanitation Act (Act No.  233 of 1947), which entered into force on 1  June 2020, the 
Standards were amended to require that foods containing design ated ingredients or substances that 
require specific cautions are to be labelled with such ingredients, with a view to ensuring the safety 
and autonomous choice of consumers. The Standards were amended and entered into force on 
1 June 2020 to add raw buffa lo milk to the category "milk", reflecting the amendment of the 
Ministerial Ordinance concerning the Ingredient Standards of Milk and Dairy Products, and to make 
it possible for nutrient content claims to state "low" when they are not only "less" but also "equal" 
to the standard values. In addition, the Standards were amended and entered into force on 
27 March  2020 (with a transition period until 31  March  2022) so that the timing of cleaning/polishing 
displayed on labels for rice can contain only month and year (without information on date). 
Moreover, the amended Standards that entered into force on 16  July 2020 (with a transition period 
until 31  March  2022) stipulate that labelling of food additives remove the terms "synthetic" and 
"artificial".  
3.112.   The Food La belling Standards were also amended and entered into force on 16  July 2020 to 
reflect the revision to the Enforcement Order of the Act on Japanese Agricultural Standards to add 
organic livestock products in designated agricultural and forestry products. Th e Standards were also 
amended in March 2021 to enable production place, variety, and production year for unpolished rice 
or polished rice to be labelled without certification by the Agricultural Products Inspection Act (Act 
No. 144 of 1951) and to obligate  persons engaged in food -related business to store document bases 
for labelling; this entered into force on 1  July 2021.  
3.113.   Another series of amendments entered into force on 30  March  2022 to make the nature of 
high oleic acid content in soybeans not subject to the "Specific Genetically Modified (GM) products" 
label and to make GM mustards subject to mandatory labelling for GM products.94 Also, two methods 
of analysis were added: (i) "inductively coupled plasma - mass spectrometry" for analysing 
chromium, selenium, and iodine in terms of nutritional labelling; and (ii) "gravimetric solvent -
extraction method" for analysing lipids . Additionally, as JASs for soy sauce and edible plant fat and 
oil are to be revised corresponding to international stand ards, the provisions quoted from the JASs 
were partially amended.95 
3.114.   With respect to the Household Goods Quality Labelling Act, revisions of the description of 
the following areas were introduced: (i)  "water purifiers", involving revision to the Quality Lab elling 
Rules for Miscellaneous Manufactured Goods (entered into force on 1  October  2020); (ii)  "fibers 
names of textile goods", involving a revision to the Quality Labelling Rules for Textile Goods 
(1 January  2022); and (iii)  "television receivers", involv ing a revision to the Quality Labelling Rules 
for Electrical Appliances (1  January  2022).  
3.115.   The Ministerial Order for Tobacco Business Act was amended in relation to health warnings 
on tobacco packages. The Order was amended in June 2019 and fully entered in to force in July 2020. 
The content and labelling method of health warnings on tobacco package were amended. Health 
warnings of heated tobacco were newly added , requiring them to display  the amount of tar and 
nicotine . Furthermore, t he display areas of heal th warnings were expanded from 30% to 50% of the 
principal display area . 
3.116.   During the review period, there were no changes concerning labelling requirements in the 
Consumer Product Safety Act and the Electrical Appliances and Materials Safety Act.  
 
94 Cabinet Office. Viewed at: 
https://www.caa.go.jp/policies/policy/food_labeling/food_labeling_act/assets /food_labeling_cms201_220330_
07.pdf . 
95 Cabinet Office. Viewed at: https://www.caa.go.jp/notice/entry/026384/ . WT/TPR/S/ 438 • Japan  
 
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 3.3.3   Sanitary a nd phytosanitary requirements  
3.3.3.1   Sanitary and phytosanitary measures  
3.117.   According to the authorities, Japan's sanitary and phytosanitary (SPS) regime aims to 
enhance and strengthen Japan's ability to satisfy its obligations under the SPS  Agreement; provid e 
adequ ate protection against risks threatening human, animal, and plant life and health; and improv e 
its competitiveness to fully benefit access opportunities.  
3.118.   SPS measures in Japan are in general based on relevant international standards or, where 
its measures do not conform to relevant international standards, on scientific risk assessment.96 Risk 
assessments undertaken by the Food Safety Commission under the Cabinet Office are available on 
its website.97 Risk analyses for phytosanitary measures undertaken by t he MAFF are also available 
on the Ministry's website.98 
3.119.   The Standards Information Service within the International Trade Division of MOFA's 
Economic Affairs Bureau is the enquiry point and the national notification authority under the 
SPS Agreement.  
3.120.   Main i nstitutions responsible for SPS measures in Japan are provided in Box 3.1.  
3.121.   Regarding food safety of imported foods, the MHLW accepts test results issued by Foreign 
Official Laboratories. The aim is to streamline and accelerate import procedures for volunta ry 
inspection that is conducted by an importer. Importers can use the testing results issued by Foreign 
Official Laboratories if the Laborator y is listed by the MHLW.99 Items for which the sanitary conditions 
are liable to change during transport by ship or air (for example, bacteria and mycotoxin) are 
excluded.100 
3.122.   Japan is a member of the Codex Alimentarius Commission and the World Organisation for 
Animal Health, and a c ontracting party to the International Plant Protection Convention.  
Box 3.1 Key agencies responsible for SPS measures  
MAFF  
Food Safety and Consumer Affairs Bureau  
 Responsible for SPS measures relating to animal feed, animals, plants, and veterinary drugs.  
MHLW  
Pharmaceutical Safety and Environmental Health Bureau  
 Responsible for administration of food safety including specifications and standards for food, food additives, 
pesticide residues, animal drug residues, genetically modified foods and their containers, and inspection 
and safety measures for food as well as for fish and fishery products (including the establishment of criteria 
or standards for food monitoring, and guidance of food distributed in J apan, including imported food).  
Cabinet Office  
 Food Safety Commission  
Responsible for conducting risk assessment on food and making recommendations to relevant ministries; 
implementing risk communication among stakeholders, e.g. consumers and business operators; and 
responding to food -borne accidents and emergencies.  
 
96 WTO document WT/TPR/M/351/Add.1, 27  April 2017.  
97 MHLW, Risk Assessment Reports . View ed at: http://www.fsc.go.jp/english/evaluationreports/ . 
98 MAFF. Viewed at: https://www.maff.go.jp/j/syouan/keneki/kikaku/pra_kaisei.html ; and MAFF, Risk 
Analyses for Animal Health . Viewed  at: https://www.maff.go.jp/j/syouan/douei/eisei/sop/index.html . 
99 When the government of an exporting country recognizes a laboratory's capacity to carry out relevant 
inspections, the MHLW may place it on the list of Foreign Official Laboratories, if requested by the government 
of the exporting country. The Laboratory can be either a public or private entity. MHLW. Viewed at: 
https://www.mhlw.go.jp/stf/seisakunitsuite/b unya/0000144562.html ; and 
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin/yunyu_kanshi/index_00019.html . 
100 MHLW, Foreign Official Laboratories . Viewed at:  
https://www.mhlw.go.jp/english/topics/importedfoods/dl/1 -10.pdf ; and 
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin/yunyu_kanshi/index_00019.html . WT/TPR/S/ 438 • Japan  
 
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 Ministry of the Environment  
 Nature Conservation Bureau  
Responsible for managing risks to the environment from imports, including from invasive alien species.  
Source:  Information provided by the authorities.  
3.3.3.2   Legislative framework  
3.123.   Several laws and acts form the basis of legislative framework of SPS measures and practices 
in Japan (Table  3.11).  
Table  3.11 Main SPS legislation , 2022  
Legislation  Authority  Objectives  
Food Safety Basic Act  Cabinet Office (Food Safety 
Commission of Japan), MIC, 
MHLW, MAFF, Ministry of the 
Environment, CAA   The Act aims to comprehensively 
promote policies to ensure food safety 
by establishing basic policy principles; 
clarifying the  responsibilities of 
national and local governments and 
food-related business operators and 
the roles of consumers; and 
establishing a basic direction for 
policy formulation.  
Food Sanitation Act   MHLW  The Act a ims to prevent eating and 
drinking -related sanitation hazards 
through measures to ensure food 
safety. The Act applies to food and 
drink.  
Plant Protection Act  
 MAFF  The Act provides the legal basis for 
regulations on plant protection 
including quarantine for local, 
imported, and exported plants.  
Act on Domestic Animals Infectious 
Diseases Control   MAFF  The Act aims to protect and promote 
the livestock industry by preventing 
the outbreak and spread of infectious 
diseases in domestic animals.  
Agricultural Chemicals Control Act  MAFF  The Act was amended in 2018 (Act 
No. 53 of 2018) in order to improve 
pesticide safety and contribute to 
more efficient agriculture.  
Source:  Information provided by the authorities.  
3.124.   During the review period, Japan submitted regular notifications to the WTO Committee on 
Sanitary and Phytosanitary Measures (Box 3.2).  In the SPS committee, no specific trade concerns 
were raised by Members regarding SPS measures maintained or planned by Japan.  
3.125.   A few amendments to relevant legislation occurred during the review period. The Food 
Sanitation Act, amended in 2018, partially entered into force in June 2020 and fully entered into 
force in June 2021.101 The amendment was to, inter alia, reflect changing dietary patterns and the 
environment surrounding food in Japan as well as to increase hygiene control, such as requiring 
hazard analysis and critical control points (HACCP) -based hygiene controls on meat and edible meat 
offal to be imported and hygiene cer tificates to import dairy products and marine products.102 
3.126.   To enhance the safe use of pesticides, Japan amended the Agricultural Chemicals Control 
Act in 2018. The amended Act introduced, inter alia, a re -evaluation system for pesticides.103 The 
 
101 MHLW, Implementation of the Amendment to the Food Sanitisation Act . Viewed at: 
https://www.mhlw.go.jp/content/11135000/000968271.pdf . 
102 MHLW. Viewed at: 
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin/yunyu_kanshi/index_00013.html ; 
https://www.mhlw.go.jp/stf/seisakunit suite/bunya/kenkou_iryou/shokuhin/yunyu_kanshi/index_00014.html ; 
and 
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin /yunyu_kanshi/index_00011.html . 
103 Proposed revision of the regulations under the Agricultural Chemicals Regulation Act was notified in 
WTO documents G/SPS/N/JPN/593, 1  August  2018; and G/SPS/N/JPN/624, 20  March  2019. The revision of WT/TPR/S/ 438 • Japan  
 
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 MAFF started  the procedure for re -evaluation of the first batch of agricultural chemicals in 
October  2021.104 Moreover, the amended Act introduced a risk assessment for pesticides to their 
users and to honeybee s; the amendment entered into force April 2020.  
Box 3.2 Selected SPS measures notified to the WTO, 2020 -22 
1. Notification of import (papaya seeds and seedlings for cultivation from Thailand)  
The designation of living organisms that need notification prior to their importation based on the Cartagena 
Act (Japanese national law to implement the Cartagena Protocol on the Biosafety to Convention on Biological 
Diversity) was notified by WTO document G/SPS/N/JPN/874, 1  November  2021. The measure notified entered 
into force on 1  April 2022.  
The outline of the measure is to prevent adverse effects on biological diversity. A person who imports papaya 
seeds and seedlings for cultivation from Thailand shall submit a notification to the MAFF prior to their 
importation.  
2. Feed safety  
(i) Feeds and feed additives for horses (WTO document G/SPS/N/JPN/732, 31  March  2020)  
(ii) L-methionine (WTO document G/SPS/N/JPN/750, 2  April 2020)  
(iii) Heptachlor (WTO document G/SPS/N/JPN/763, 1  July 2020)  
(iv) Fipronil  (WTO document G/SPS/N/JPN/764, 2  July 2020)  
(v) Salinomycin sodium (WTO document G/SPS/N/JPN/777, 2  September  2020)  
(vi) Phytase (WTO document G/SPS/N/JPN/778, 16  September  2020)  
(vii) Alkaline protease (WTO document G/SPS/N/JPN/826, 19  January  2021)  
(viii) Muramidase (WTO document G/SPS/N/JPN/875, 16  November  2021)  
3. Plant quarantine  
The following notifications on phytosanitary measures have been made.  
(i) Proposed revision of the Ordinance for Enforcement of the Plant Protection Act, relevant notifications and 
Detailed Rules for Import Plant Quarantine Enforcement Concerning Plants Subject to Specific Phytosanitary 
Measures to be Carried Out in Exporting Countries (WTO document G/SPS/N/JPN/712, 9  January  2020)  
(ii) Proposed revision o f the Ordinance for Enforcement of the Plant Protection Act, relevant notifications and 
Detailed Rules for Import Plant Quarantine Enforcement Concerning Plants Subject to Specific Phytosanitary 
Measures to be Carried Out in Exporting Countries; Correction  (WTO document G/SPS/N/JPN/712/Corr.1, 
15 January  2020)  
(iii) The Government accepts temporarily scanned or hard copies of export certificates for animals, plants, 
and their products to be exported to Japan in order to facilitate trade in face of COVID -19 outbreak. (Entry 
into force on 21  April 2020, WTO document G/SPS/N/JPN/755, 23  April 2020)  
(iv) Notifications of revisions of the Ordinance for Enforcement of the Plant Protection Act and relevant 
requirements (WTO document G/SPS/N/JPN/712/Add.1 on 12  May 2020)  
(v) Proposed revision of the Ordinance for Enforcement of the Plant Protection Act about Phytosanitary 
Certificate (WTO document G/SPS/N/JPN/684/Add.1, 6  August  2020)  
(vi) Proposed revision of the Ordinance for Enforcement of the Plant Protection  Act, relevant notifications and 
detailed rules for import plant quarantine enforcement concerning plants subject to specific phytosanitary 
measures to be carried out in exporting countries (WTO document G/SPS/N/JPN/827, 1  February  2021)  
(vii) Emergency m easures to prevent tomato brown rugose fruit virus (ToBRFV) from entering Japan through 
the importation of host seeds and plants of ToBRFV (WTO document G/SPS/N/JPN/828, 4  February  2021)  
(viii) Revisions of the Ordinance for Enforcement of the Plant Prote ction Act and relevant requirements 
(WTO  document G/SPS/N/JPN/827/Add.1, 14  April 2021)  
(ix) Emergency measures to prevent potato spindle tuber viroid (PSTVd) from entering Japan through the 
importation of seeds and plants of host plants of PSTVd (WTO doc ument G/SPS/N/JPN/864, 30  August  2021)  
 
WTO document G/SPS/N/JA P/593 entered into force on 1  December  2018. The revision of WTO document 
G/SPS/N/JAP/624 entered into force on 1  April 2020.  
104 MAFF. Viewed at: https://www.maff.go.jp/j/nouyaku/ saihyoka/taisyounouyaku.html . WT/TPR/S/ 438 • Japan  
 
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 (x) Proposed revision of the Ordinance for Enforcement of the Plant Protection Act, relevant notifications and 
detailed rules for import plant quarantine enforcement concerning plants subject to specific phytosanitar y 
measures to be carried out in exporting countries (WTO document G/SPS/N/JPN/905, 17  December  2021)  
(xi) Revisions of the Ordinance for Enforcement of the Plant Protection Act and relevant requirements 
(WTO  document G/SPS/N/JPN/905/Add.1, 11  April 2022)  
(xii) The amendment of the Plant Protection Act (WTO document G/SPS/N/JPN/1017, 9  May 2022)  
(xiii) Emergency measures to prevent pepino mosaic virus (PepMV) from entering Japan through the 
importation of seeds and pl ants of host plants of PepMV (WTO document G/SPS/N/JPN/1021, 16  May 2022)  
(xiv) Emergency measure to prevent ToBRFV from entering Japan through importation of host seeds of 
ToBRFV (WTO document G/SPS/N/JPN/1056, 27  June 2022)  
(xv) Emergency measure to pr event Xylella fastidiosa from entering Japan through importation of host plants 
of X. fastidiosa (WTO document G/SPS/N/JPN/1060, 7  July 2022)  
4. Animal quarantine  
Regarding animal health measures, Japan provided the following documents.  
(i) The Governme nt accepts temporarily scanned or hard copies of export certificates for animals, plants, and 
their products to be exported to Japan in order to facilitate trade in face of COVID -19 outbreak. (Entry into 
force on 21  April 2020, WTO document G/SPS/N/JPN/755 , 23 April 2020)  
(ii) The amendment of the Act on Domestic Animal Infectious Diseases Control, which strengthens legal 
authority of animal quarantine officers and raises the penalty for violation against the provisions of import 
and export quarantine. (En try into force on 1  July 2020, WTO document G/SPS/N/JPN/754, 20  April 2020)  
(iii) Abolition of the "ORIGINAL" stamp for the official Export Quarantine Certificate issued by Japanese Animal 
Quarantine Service (AQS) in order to simplify the issuance procedu re. (Entry into force on 1  March  2022, WTO 
document G/SPS/N/JPN/927, 25  January 2022)  
5. Food Sanitation Act  
There have been no major changes since 2020 concerning Japan's SPS requirements under the Food 
Sanitation Act.  
Source:  WTO SPS Information Management System. Viewed at: http://spsims.wto.org/ . 
3.127.   Regarding hormone -fed animals (not products), there are no import restrictions. However, 
imports of "hormones" such as Zeranol, r -BST, or Racto pamine for growth promotion for domestic 
usage, are not allowed, because they are not permitted to be used for animals in Japan.105 According 
to the authorities, from a food safety perspective, there are no hormone -specific regulations in 
Japan, and hormone s are subject to the same regulations as other veterinary drugs; the MHLW 
ensures safety of GM foods through a comprehensive assessment (safety assessment) based on 
scientific data by the Food Safety Commission. Without passing the safety assessment, GM fo ods 
and foods using those as raw materials, cannot be produced, imported, or marketed in Japan.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.128.   Competition policy continues to be governed by the Act on Prohibition of Private 
Monopolization and Mai ntenance of Fair Trade of 1947 (Anti -Monopoly Act (AMA)) (last amended in 
2019)106, which covers unreasonable restraint of trade (i.e. cartels and bid -riggings), private 
monopolization107, unfair trade practices (e.g. abuse of superior bargaining position, u njust low price 
 
105 They are not currently approved as veterinary drugs or designated as feed additives.  
106 JFTC, The Antimonopoly Act (AMA). Viewed at: 
https://w ww.jftc.go.jp/en/legislation_gls/amended_ama09/index.html . 
107 Private monopolization includes two types of conduct: "exclusionary conduct" and "controlling 
conduct". The former refers to conduct that creates, maintains, or strengthens one's market power and  thus 
causes significant difficulty for other enterprises to compete or enter the market. Controlling conduct means 
conduct that restrains other enterprises' decision -making ability concerning their business activities. 
Y. Kashiwagi (2022), " The Dominance and Monopolies Review: Japan ", The Law Reviews , 21 June. Viewed at: 
https://thelawreviews.co.uk/title/the -dominance -and-monopolies -review/japan . Four typical exclus ionary 
conducts include "below -cost pricing", "exclusive dealing", "tying", and "refusal to supply and discriminatory 
treatment". JFTC, The Guidelines for Exclusionary Private Monopolization under the Antimonopoly Act. Viewed 
at: https://www.jftc.go.jp/en/legislation_gls/imonopoly_guidelines_files/20122501.pdf . WT/TPR/S/ 438 • Japan  
 
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 sales), and mergers and acquisitions.108 The Japan F air Trade Commission (JFTC) is the agency 
responsible for implementing the AMA.  
3.129.   The JFTC issued guidelines on various monopoly or unfair trade issues under the AMA, as 
well as published det ailed rules on investigation. The rule -of-reason approach is generally used by 
the JFTC in investigations. The JFTC also maintains guidelines regarding mergers and acquisitions 
(issued on 31  May 2004 and last updated on 17  December  2019). According to the authorities, the 
update concerned business combinations in the digital market, including the definition of markets 
for digital services (product range and geographical range) and clarifications relating to substantial 
restraint of trade in the case of hori zontal, vertical, and conglomerate business combinations in the 
digital market.109 All relevant legislation and implementing rules are published on the JFTC's official 
website.110 
3.130.   During the review period, amendments to the AMA adopted on 19  June 2019 (Act N o. 45 of 
2019) entered into force.111 The amended AMA introduced a new leniency system that allows the 
JFTC to reduce the amount of surcharges (administrative fines) according to the degree of 
enterprises' cooperation during an investigation and abolishes t he limitation on the number of 
enterprises that can benefit from the leniency programme in a case.112 In addition, the calculation 
period for surcharges was extended from a maximum of 3 years to up to 10 years before the start 
of the investigation. A provision was introduced to allow the JFTC to estimate the basis of calculation 
when the sales volume is n ot available. To make the application of the new leniency programme 
more effective, the JFTC introduced new "privilege -like" rules for attorney -client communications 
under its Rules on Investigations.113 In line with the newly amended AMA, guidelines on the  leniency 
system for cooperation in investigation were adopted.114  
3.131.   In response to the COVID -19 pandemic, the JFTC took a number of actions related to 
competition policy. In 2020, the JFTC issued a press release stating that necessary and temporary 
coordination between competitors to ensure supply and distribution of related goods and services 
would not violate the AMA.115 The statement in the press release does not limit the applicable 
timeframe or the range of targeted products and services. However , these flexibilities apply only in 
emergency situations, such as COVID -19. In the same year, the JFTC published three cases of 
coordination of business activities related to COVID -19 that were considered to be helpful for other 
enterprises.116 One of the c ases permitted under the AMA concerned a medical device manufacturers 
association that conducted a survey on the supply bottlenecks affecting medical devices and provided 
the anonymous survey results to the association's disaster response office.  
3.132.   Several  activities  and business practices remain exempt from the scope of the AMA.117 
Competition in these areas may be covered by other legislation and different institutions. No other  
exemptions were introduced during the review period. The exemptions provided in the Act 
 
108 The definitions of these four types of conduct can be found in Chapter I (General Provisions), 
Article 2(5), (6), and (9) and Chapter IV (Shareholdings, Interlocking Officers, Mergers, Splits, Share Transfers 
and Acceptance of Assignment of Business) of the AMA.  
109 JFTC, Amendments to the "Guidelines to Application of the Anti -Monopoly Act Concerning Rev iew of 
Business Combination" and the "Policies Concerning Procedures of Review of Business Conduct". Viewed at:  
https://www.jftc.go.jp/en/pressreleases/yearly -2019/December/191217.html . 
110 The relevant instruments can be viewed at: 
https://www.jftc.go.jp/en/legislation_gls/imonopoly_g uidelines.html . 
111 The amended AMA came into force in three stages, on 26  July 2019, 1  January  2020, and 
25 December 2020.  
112 JFTC, Special Feature on the New System under the Amended Antimonopoly Act. Viewed at: 
https://www.jftc.go.jp/en/policy_enforcement/210413.html . 
113 New procedures regarding the treatment of objects recording confidential communications between 
an enterprise and its attorney were also established. JFTC, Amendments o f the Rules/Guidelines with the 
Amendment of the Antimonopoly Act (Determination Procedure etc.) . Viewed at: 
https://www.jftc.go.jp/en/pressreleases/yearly -2020/June/20062 5.html . 
114 JFTC, Guidelines to Reduction System for Cooperation in Investigation . Viewed at: 
https://www.jftc.go.jp/en/policy_enforcement/21041304.pdf . The Rules on Reporting the Fact s and Submitting 
the Materials Regarding Immunity from or Reduction of Surcharges were also adopted.  
115 JFTC (2020),  Response of the JFTC to Initiatives by Business Operators, etc. Related to the Novel 
Coronavirus Infection. Viewed at: https://www.jftc.go.jp/houdou/pressrelease/2020/apr/200428.html . 
116 JFTC (2021),  Case Studies on Antimonopoly Law.  Viewed at: 
https://www.jftc.go.jp/houdou/pressrelease/2021/jun/210609.html . 
117 WTO document WT/TPR/S/397/Rev.1, 6  November  2020, Table  3.16.  WT/TPR/S/ 438 • Japan  
 
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 Concerning Special Measures for Correcting Practices Impeding Consumption Tax Pass -on, etc. with 
the Aim to Ensure Smooth and Proper Pass -on of Consumption Tax expired on 31  March  2021.  
Enforcement  
3.133.   Japan maintains both a criminal enforcement system  and a civil administrative route to 
enforce competition -related rules. The JFTC has the exclusive authority to impose administrative 
orders (including cease -and-desist orders and surcharge payment orders) and to approve 
commitment plans proposed by enterp rises under investigation. The civil administrative process is 
the main option used for enforcement. With respect to criminal sanctions, the JFTC has only the 
authority to file criminal accusations with the Public Prosecutor's Office. An investigation on p ossible 
violations of the AMA may be initiated as a result of (i)  a report from the general public; (ii)  detection 
by the JFTC itself; (iii)  notification by the Small and Medium Enterprise Agency; or (iv)  a report by 
leniency applicants. In addition, priva te damage actions may be brought before civil courts by those 
affected by specific violations. For statistical information about JFTC's investigations, see Table  3.12. 
Table  3.12 Competition enforcement statis tics, 2019 -21a 
 2019  2020  2021  
Initiation of case investigations (number)     
Cases concerning anti -competitive agreements  .. .. .. 
Cases concerning abuse of dominance  .. .. .. 
Leniency applications  73 33 52 
Notifications of mergers and acquisitions  310 266 337 
Completed cases (number)     
Anti-competitive agreements  9 8 3 
Abuse of dominance  1 1 0 
Settlements  2 6 2 
Mergers and acquisitions (number of decisions and 
number of mergers and acquisitions that were not 
approved)  0 0 0 
Infringement penalties  
(number and value in JPY)  37 companies;  
69.27  billion  4 companies;  
4.32 billion  31 companies;  
2.18 billion  
Appeals (number of completed judicial review 
decisions)  11 4 3 
.. Not available.  
a The JFTC reviews not only all transactions with a notification, which correspond to 1.d), but also 
transactions without a notification if needed. As a result of a business combination review, it issues a 
cease -and-desist order if the JFTC concludes that a transaction would substantially restrain 
competition in the relevant markets. Otherwise, the JFTC sends a notification that it would not issue 
a cease -and-desist order. The JFTC also sends a notification when it concludes that there is no 
concern on the pr emise of remedies. Since "completed cases" are defined as transactions with a 
legal action, the numbers in 2 .d) count only the numbers of cease -and-desist orders. When defining 
"completed cases" as transactions with a legal action, the number corresponds  to the cases in which 
cease -and-desist orders were issued . Thus, the numbers in 2 .d) reflect only the numbers of  
decisions and number of mergers and acquisitions that were not approved . 
Source:  OECD (2021), Annual Report on Competition Policy Developments i n Japan: 2020 . Viewed at: 
https://www.jftc.go.jp/en/about_jftc/annual_reports/oecd_files/japan2020.pdf ; JFTC (2021), 
Enforcement of the Antimonopoly Act in FY2020 (Summary) . Viewed at: 
https://www.jftc.go.jp/en/pressreleases/yearly -2021/May/210526.pdf ; JFTC (2020), State of 
Notifications Related to Business Combinations in Fiscal Year  2019. Viewed at: 
https://www.jftc.go.jp/en/policy_enforcement/mergers/index_files/Stateofnotificationsrelatedtob usin
esscombinationsinFY2019.pdf . WT/TPR/S/ 438 • Japan  
 
- 71 - 
 Market studies  
3.134.   The JFTC continued to conduct market studies and publish reports on various aspects of 
digital markets in 2021, including digital advertising118, algorithms and artificial intelligence (AI)119, 
mobile networks120, and data markets.121 The reports examined the state of competition among 
operators in the digital sector while highlighting a number of activities that could raise concerns 
under the AMA.  
3.135.   Given the results of market studies, the JFTC published g uidelines to clarify its views on 
competition policy and the AMA. In 2021, following the market survey on a transaction between 
convenience store headquarters and its member stores, the JFTC revised the Guidelines Concerning 
the Franchise System under the AMA to flag competitive concerns that had been identified through 
the survey.122 The JFTC and the METI also jointly developed the Guidelines on Business Partnership 
Contracts with Start -ups to present best practices for contracts concluded between start -ups and 
collaborating enterprises.123 
International cooperation  
3.136.   The JFTC remains actively involved in competition policy activities at the multilateral level 
with organizations such as the International Competition Network (ICN), the OECD, the Asia -Pacific 
Economic Cooperation (APEC), and the United Nations Conference on Trade and Development 
(UNCTAD).124 It also cooperates closely with foreign competition authorities through different types 
of agreements, including interagency memoranda of understanding (MoU) a nd administrative 
agreements to conduct joint enforcement activities.125 During the review period, the JFTC concluded 
a Memorandum on Cooperation with the Competition Commission of India.126 
3.137.   Most RTAs concluded by Japan contain a competition -related  chapter.127 In general, the 
focus is usually on general principles that should be followed in competition enforcement and the 
necessity to enhance enforcement cooperation and technical assistance. During the review period, 
Japan concluded the Japan -UK Comprehensive  Economic Partnership Agreement (Japan -UK CEPA)128 
and the RCEP.129 
3.3.4.2   Price controls  
3.138.   According to the authorities, there is no control over the prices that suppliers can charge for 
goods and services in Japan. In 2020, the JFTC posted its view on business init iatives related to the 
COVID -19 pandemic. It noted that while an unjustifiable imposition of a minimum resale price is a 
violation of the AMA, instructing retailers to sell products such as face masks below a price ceiling 
 
118 JFTC (2021), " Final Report Regarding Digital Advertising ", 17 February.  Viewed at: 
https://www.jftc.go.jp/en/pressreleases/yearly -2021/February/210217.html . 
119 JFTC (2021), " The Study Group on Competition Policy in Digital Markets Released the Report on  
Algorithms/AI and Competition Policy ", 31 March. Viewed at: https://www.jftc.go.jp/en/pressreleases/yearly -
2021/March/210331.html . 
120 JFTC ( 2021), "Competition Policy Issues in the Mobile Phone Market", 10 June. Viewed at: 
https://www.jftc.go.jp/houdou/pressrelease/2021/jun/210610.html . 
121 JFTC (2021), " Report of the Study Group on Competition P olicy for Data Markets ", 25 June. Viewed 
at: https://www.jftc.go.jp/en/pressreleases/yearly -2021/June/210625.html . 
122 OECD (2021), Annual Report on Competition Policy Devel opments in Japan: 2020.  Viewed at: 
https://www.jftc.go.jp/en/about_jftc/annual_reports/oecd_files/japan2020.pdf . 
123 OECD (2021), Annual Report on Competition Policy  Developments in Japan: 2020. Viewed at: 
https://www.jftc.go.jp/en/about_jftc/annual_reports/oecd_files/japan2020.pdf . 
124 JFTC, International Relations: International Agreements. Viewed at: 
https://www.jftc.go.jp/en/int_relations/agreements.html . 
125 WTO documents WT/TPR/S/351/Rev.1, 20  June 2017, Table  3.13; and  WT/TPR/S/397/Rev.1, 
6 November 2020, Table  3.13. 
126 JFTC, The Japan Fair Trade Commission Concluded Memorandum on Cooperation with the 
Competition Commission of India. Viewed at: https://www.jftc.go.jp/en/pressreleases/yearly -
2021/August/210806.html . 
127 WTO document WT/TPR/S/351/Rev.1, 20  June 2017, Table  3.14. 
128 Japan -UK CEPA, Chapter 11 (Competition Policy). Viewed at: 
https://www.jftc.go.jp/en/int_relations/agreements_files/nichieiepaen.pdf .  
129 RCEP Agreement, Chapter 13 (Competition). Viewed at: 
https://www.jftc.go.jp/en/int_relations/agreements_files/rcep_comp_en.pdf . WT/TPR/S/ 438 • Japan  
 
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 during the COVID -19 pandemic in o rder to prevent retailers from setting unreasonably high prices 
is usually in the interest of consumers and is justifiable under the AMA.130 
3.139.   Japan maintains a price survey scheme on certain pharmaceutical products, based on a drug 
reimbursement price standa rd. The standard  is defined by the MHLW.  The actual purchase prices 
paid by medical institutions and pharmacies are surveyed, and the reimbursement prices specified 
in the standard are revised periodically based on the results of the survey.131 All medicines covered 
by the National Health Insurance (approximately 20,000) are subject to the price survey.  To control 
healthcare costs, the Government had been revising the reimbursement prices biennially, leading to 
price cuts of 5% to 7% every other year .132 In 2021, Japan started implementing an annual (or 
"off-year") reimbursement price revision system and reduced prices on some 12,180 drugs, or 69% 
of all prescription drugs.133 The total price cuts were worth roughly JPY  430 billion.134 In April 2022, 
Japan announced that the latest price cuts averaged about 6.6%, accounting for more than 
JPY 600 billion.135 
3.3.4.3   Corporate governance  
3.140.   Japan has several legally non -binding instruments regarding cooperate governance. During 
the review period, some went through majo r revisions.  
3.141.   In June 2021, the revised Corporate Governance Code (2021CGC) was released and came 
into effect immediately.136 The 2021CGC, a governance code implemented by the Tokyo Stock 
Exchange (TSE), applies to companies listed with the Prime or Standard  Market of the TSE, requiring 
them to provide an explanation for non -compliance with any principle of the Code. The 2021CGC 
also requires Growth Market -listed companies to provide an explanation for non -compliance with 
any General Principles of the Code.137 The 2021CGC encourages listed companies to enhance 
governance for their sustainable growth and mid - to long -term corporate value improvement . The 
2021CGC stresses, inter alia, (i) enhancing board independence; (ii)  promoting diversity; and 
(iii) paying attention to sustainability and the Environmental, Social and Governance ( ESG) aspect 
of investment . 
3.142.   To implement the Corporate Governance Code, the METI publishes several guidelines. In 
July 2022, the Ministry published the revised Corporate Governance Syst em Guideline (2022CGS 
Guideline).138 This revised Guideline, designed for all listed companies, particularly aims at 
strengthening both executive functions and monitoring functions, and improving medium - to 
long-term co rporate value through governance refor ms. To this end, the 2022CGS Guideline 
encourages (i)  improvement of the roles and functions of board of directors; (ii)  enhancement of the 
quality and evaluation of outside directors; and (iii)  development of an environment for 
strengthening management le adership.  
 
130 JFTC, Q&A Concerning Activities Addressing COVID -19 under the Antimonopoly Act. Viewed at: 
https://www.jftc.go.jp/ oshirase/coronaqa.html . 
131 MHLW (2018), Update of Drug Pricing System in Japan. Viewed at: 
https://www.mhlw.go.jp/content/11123000/000335166.pdf . 
132 McKinsey & Company (2018), " Change in t he Japanese Pharmaceutical Market: Cradle of Innovation 
or Grave of Corporate Profits? " Viewed at: https://www.mckinsey.com/industries/life -sciences/our -
insights/change -in-the-japane se-pharmaceutical -market -cradle -of-innovation -or-grave -of-corporate -profits . 
133 T. Komatani (2022), " The Life Sciences Law Review: Japan ", The Law Reviews . Viewed at: 
https://thelawreviews.co.uk/title/the -life-sciences -law-review/japan . 
134 Nippon (2020), " Japan to Lower Drug Prices to Reduce Medical Costs ", 17 December . Viewed at: 
https://www.nippon.com/en/news/ yjj2020121700128/ . 
135 T. Sami (2022), " Japan's Annual Drug Price Reforms Result in Less Predictability for Pharma Market", 
BioWorld , 18 April. Viewed at: https://www.bioworld.com/articles/517978 -japans -annual -drug-price-reforms -
result -in-less-predictability -for-pharma -market?v=preview . Companies expressed concern that frequent price 
adjustments have made the mark et unpredictable. International Trade Administration, Country Commercial 
Guide: Japan – Pharmaceuticals.  Viewed at: https://www.trade.gov/country -commercial -guides/japan -
pharmaceuticals . 
136 Japan Exchange Group (2021), " Publication of Revised Japan's Corporate Governance Code ", 
11 June. Viewed at: https://www.jpx.co.jp/english/news/1020/20210611 -01.html . 
137 Japan Exchange Group, Enhancing Corporate  Governance . Viewed at: 
https://www.jpx.co.jp/english/equities/listing/cg/index .html.  
138 METI, Executive Summary: About the Revised CGS Guidelines . Viewed at: 
https://www.meti.go.jp/policy/economy/keiei_innovation/keizaihous ei/pdf/cgs/summary2022_en.pdf .  WT/TPR/S/ 438 • Japan  
 
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 3.143.   In July 2020, the METI published two new guidelines relating to corporate governance. The 
first one, Practical Guideline for Business Transformations, illustrates how to secure effective 
cooperate governance to promote business transformations fo r sustainable growth, consistent with 
the Corporate Governance Code.139 This Guideline specifically focuses on three key players 
(management, board of directors, and investors) and explains their respective roles in undertaking 
business transformations. The  second guideline, Practical Guideline s for Independent Directors , 
clarifies the expected role of outside directors in leading more substantial corporate governance 
reforms.140 
3.144.   Japan's Voluntary Stewardship Code for Institutional Investors was revised in Ma rch 2020 
(Section  4.4.1).  
3.3.5   State trading, state -owned enterprises, and privatization  
3.145.   Japan keeps stakes in a few companies in telecommunications, financial services, railways, 
and airports, as well as in energy and leaf tobacco (Table  3.13).  
3.146.   During the review period, Japan notified a list of four state trading enterprises remaining 
operational according to the provisions of Article  XVII:4(a) of the GATT  1994 and paragraph 1 of the 
understanding on the interpretation of Article  XVII related to State Tradi ng Enterprises.141 
Table 3.13 Large state -owned enterprises, FY2021  
.. Not available.  
a Although not listed as "large" entities, companies such as Tokyo Metro Co. Ltd, Japan Petroleum 
Exploration Co. Ltd (JAPEX), INPEX Corporation (oil and gas exploration),  and Japan Railway 
Construction, Transport and Technology Agency (JRTT) have operating revenues exceeding 
JPY 100 billion.  
Source : Information provided by the authorities.  
 
139 METI, Practical Guideline for Business Reconstruction . Viewed at: 
https://www.meti.go.jp/press/2020/07/20200731003/20200731003 -1.pdf.  
140 METI, Practical Guideline Concerning the Role of Outside Directors . Viewed at: 
https://www.meti.go.jp/press/2020/07/20200731004/20200731004 -1.pdf.  
141 Full details of the state  trading enterprises that Japan notified to the WTO under Article  XVII are 
provided in WTO document G/STR/N/18/JPN, 15  September  2020.  Name/operation  Total asset 
value  
(JPY  billion)  Total 
operating 
revenue  
(JPY  billion)  Total operating 
profit 
before/after tax  
(JPY  billion)  State/public 
authority 
shareholding  
New Kansai International Airport Company Ltd  
Established in 2012 for the operation of Kansai 
International Airport and Itami Airport  2,141  54 7/0 100%  
Narita International Airport Corporation Ltd  
Established in 2004 for the operation of Narita 
International Airport  1,225  82   -52/-52 100%  
Nippon Telegraph and Telephone Corporation  
Owns all the shares issued by NTT East and 
NTT West. Required to ensure proper and 
stable provision of telecommunications services 
by these companies throughout Japan, 
including in remote rural areas, as well as to 
conduct research relating to 
telecommunic ations technologies  11,664  650 468/470  36.0%  
Japan Post Holdings Co. Ltd  
Owns all the shares issued by Japan Post Co. 
Ltd  303,846  .. 841/618  33.3%  
Japan Finance Corporation  40,266  437 -387 100%  
Japan Tobacco Inc.  
JT is mainly engaged in the manufacture and 
sale of tobacco products, prescription drugs and 
processed foods  2,488  94 236 33.4%  
Tokyo Metro Co. Ltd.  
Established in 2004 for operating and managing 
railway business in Tokyo area  1,813 307 -23/-13 53.4% 
Government of 
Japan and 
46.6% Tokyo 
Metropolitan 
Government  WT/TPR/S/ 438 • Japan  
 
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 3.3.6   Government procurement  
3.147.   Japan's government procurement market has been estimated at more than JPY  95 trillion in 
2020.142 According to the OECD, it represented 16.3% of GDP in 2019 (an increase of 0.2% 
compared to 2017), well above the OECD average (12.6%).143 In 2019 procurement spending was 
mainly allocated to healthcare (44. 4%), economic affairs (14.4%), and social protection (13.9%).144 
3.148.   During the review period, the basic rules on government procurement remained unchanged. 
Central government entities, sub -central government entities, and public corporations follow their 
respe ctive procedures, which are established by different laws and regulations due to their 
autonomous status. For the central government, the main laws and regulations include the Accounts 
Law of 1947 (last amended in 2019); the Cabinet Order Concerning the Bu dget, Auditing and 
Accounting of 1947 (amended once in 2020, and twice in 2021)145; the Special Provisions for the 
Cabinet Order concerning the Budget, Auditing and Accounting of 1946; and the Regulations on the 
Management of Contract Administration (MOF Or dinance No.  52 of 1962).  
3.149.   The legal framework for sub -central government entities includes the Local Autonomy Law 
of 1947 (last amended in 2022)146 and the Ordinance for Enforcement of the Local Autonomy Law 
of 1947 (last amended in 2022).147 Procurement procedures followed by public corporations are set 
out in their accounting or internal statutes. Ministers who oversee public corporations are responsible 
for ensuring the consistency of their procurement activities with the internal rules. According to the 
authorities, t here are no differences among the procedures applying to different categories of 
entities.  
3.150.   Japan maintains special procurement procedures for individual sectors, such as 
supercomputers (since 16  July 1987), non -R&D satellites (since 14  June 1990), computer products 
and services (since 20  January  1992), telecommunications products and services, and medical 
technology products and services (since 28  March  1994).148 These procedures govern the 
procurement by central government entities and public co rporations.  
3.151.   As a party to the WTO  Agreement on Government Procurement (GPA 2012), Japan 
implements the GPA 2012 rules and other international agreements through (i)  the Cabinet Order 
Stipulating Procedures for Government Procurement of Products or Specifie d Services (last amended 
on 9 February  2022 to remove provisions on accepting tenders by mail); (ii)  the Cabinet Order 
Stipulating Procedures for Government Procurement of Products or Specified Services in Local 
Governments Entities (last amended on 23 -24 December  2020 in response to the conclusion of the 
Japan -UK CEPA and the entry into force of the GPA 2012 in Switzerland); and (iii)  the Ministerial 
Ordinance Stipulating Special Procedures for Government Procurement of Products or Specified 
Services. In 2 021, Japan enhanced its coverage of central government entities by adding the newly 
established Digital Agency to its GPA 2012 schedule.149 
3.152.   In addition  to the market access commitments undertaken under the GPA 2012, Japan 
maintains various "voluntary measur es", which are the outcome of bilateral negotiations with the 
United  States in the past, to facilitate foreign suppliers' opportunities to access Japan's government 
procurement markets . These measures are applied at the multilateral level.150 
 
142 The size of the government procurement market is based on data from the OECD National Accounts 
Statistics database. Vie wed at: https://doi.org/10.1787/na -data-en. According to the OECD, the value of the 
government procurement market is estimated using the sum of intermediate consumption, gross fixed capital 
formation, and social transfers in kind via market producers. Public corporations were excluded in this 
estimation. OECD (2021), Government at a Glance 2021 . Viewed at: https://www.oecd.org/gov/government -
at-a-glance -22214399.htm . 
143 OECD (2021), Government at a Glance 2021 . Viewed at: https://www.oecd.org/gov/government -at-
a-glance -22214399.htm .  
144 OECD (2021), Government at a Glance 2021 . Viewed at: https://www.oecd.org/gov/government -at-
a-glance -22214399.htm . 
145 According to the authorities, these amendments do not concern government procurement.  
146 According to the authorities, this amendment does not concern government procurement.  
147 According to the authorities, this amendment does not concern government procu rement.  
148 WTO document WT/TPR/S/397/Rev.1, 6  November  2020.  
149 WTO document GPA/MOD/JPN/104, 17  June 2021.  
150 WTO document WT/TPR/S/351/Rev.1, 20  June 2017, Tables 3.23 and 3.24.  WT/TPR/S/ 438 • Japan  
 
- 75 - 
 3.153.   Open tendering , selective tendering, and limited (single) tendering remain the main 
procurement methods. Among the different procurement methods, open tendering is the basic 
procedure, and is used for most GPA -covered procurement by the central government entities 
(Table 3.14). Limited tendering constitutes the second -most-used procurement method in terms of 
number of contracts and procurement value (Table  3.8).151 The conditions and thresholds for 
selective tendering and limited tendering by the central government entiti es are stipulated in the 
Cabinet Order on Budgets, the Settlement of Accounts, and Accounting.152 For sub -central 
government entities, the conditions and thresholds for selective tendering and limited tendering  are 
stipulated in the Ordinance for Enforcemen t of the Local Autonomy Law of 1947.153 
3.154.   In response to the COVID -19 outbreak, Japan adopted several policies relating to 
government procurement. In the Emergency Response Package announced in 2020, flexible 
measures concerning the government procurement process have been adopted, including 
modification of delivery times and contract amounts, the quick disbursement to contractors, and a 
revision of the reference price for upcoming tenders.154 In the same year, the Government declared 
a state of emergency in a number of prefectures, leading to the temporary suspension of regular 
procurement activities in several government entities such as the Japan Sports Council, Tokyo's 
Metropolitan Government, and the Tokyo Organising Committee of the Olympic and Paralympic 
Games.155 
Table  3.14 Value of government procurement in Japan, 2019 -20 
(JPY billion)  
Year Level  Total value of 
procurement 
(GPA -
covered and 
non-covered)  GPA-covered procurement  
   Total value  Awarded under open 
and selective 
tendering  Awarded under 
limited tendering  
    Total 
value  Ratio  Total 
value  Ratio  
2019 Central 
government  n.a. 1,837.17  
 1,335.82  
 72.7%  501.35  
 27.3%  
Sub-central 
government  n.a. 1,537.17  n.a. n.a. n.a. n.a. 
Other  n.a. n.a. n.a. n.a. n.a. n.a. 
Total  n.a. n.a. n.a. n.a. n.a. n.a. 
 
151 In 2020, 1,364 GPA -covered contracts, representing a value of SDR 2.69  billion, were awarded 
through single tendering, accounting for about one fifth of the contracts, or 23% of the total procurement 
value awarded by the central government entities.  
152 During the review period, the threshold values for each method remained unchange d. See 
Chapter  VII (Contracts), Section  3 (Contracts Under Selective Tender), Article  94 and Chapter VII (Contracts), 
Section  4 (Discretionary Contracts), Article  99 of the Cabinet Order on Budgets, the Settlement of Accounts, 
and Accounting (unofficial tr anslation). Viewed at: 
https://www.japaneselawtranslation.go.jp/en/laws/view/2970#je_ch1sc3at1 . 
153 According to Chapter V (Finance), Section  6 (Contracts), Article  167-2 (Discretionary Contracts) of 
the Ordinance for Enforcement of the Local Autonomy Law of 1947, limited tendering can only be used under 
certain circumstances. For example, a sub -central government entity can use limited tendering when the value 
of the  contract does not exceed the following levels: For contracts for construction or manufacturing, either 
(i) JPY 2.5 million or (ii)  JPY 1.3 million; for purchases of assets, either (i)  JPY 1.6 million or (ii)  JPY 800,000; 
for the borrowing of an object, ei ther (i)  JPY 800,000 or (ii)  JPY 400,000; for selling off of assets, either 
(i) JPY 500,000 or (ii)  JPY 300,000; for lending out an object, JPY  300,000; and for other contracts, either 
(i) JPY 1 million or (ii)  JPY 500,000. The aforementioned values under (i) refer all prefectural governments 
entitled "To", "Do", "Fu", and "Ken", and all designated cities entitled "Shiteitoshi", while the values under 
(ii) refer to cities other than those under (i). Viewed at: https://elaws.e -
gov.go.jp/document?lawid=322CO0000000016_20220224_504CO0000000046&keyword=%E5%9C%B0%E6%
96%B9%E8%87%AA%E6%B2%BB%E6%B3%95 . 
154 OECD, Stockt aking Report on Immediate Public Procurement and Infrastructure Responses to 
COVID -19: Country Factsheet: Japan . Viewed at: https://www.oecd.org/coronavirus/policy -
responses/stocktaking -report -on-immediate -public -procurement -and-infrastructure -responses -to-covid-19-
248d0646/#section -d1e4071 . 
155 EU-Japan Centre for Industrial Cooperation, Japanese Government Entities Suspended Procurement 
Due to COVID -19 State of Emergency , 13 April 2020. Viewed at: https://www.eu -japan.eu/news/japanese -
government -entities -suspend -procurement -due-covid-19-state-emergency . WT/TPR/S/ 438 • Japan  
 
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 Year Level  Total value of 
procurement 
(GPA -
covered and 
non-covered)  GPA-covered procurement  
   Total value  Awarded under open 
and selective 
tendering  Awarded under 
limited tendering  
    Total 
value  Ratio  Total 
value  Ratio  
2020 Central 
government  n.a. 1,796.43  
 1,383.24  
 77.0%  413.19  
 23.0%  
Sub-central 
government  n.a. 4,321.83  n.a. n.a. n.a. n.a. 
Other  n.a. n.a. n.a. n.a. n.a. n.a. 
Total  n.a. n.a. n.a. n.a. n.a. n.a. 
n.a. Not applicable.  
Note:  The value of central government procurement in 2019 is converted from JPY  to SDR at the exchange 
rate of SDR 1 = JPY  153.295 as reported in WTO document GPA/THR/JPN/1, 7  February  2018.  The 
value of central government procurement in 2020 is converted from JPY  to SDR at the exchange rate 
of SDR 1 = JPY  153.430 as reported in WTO document GPA/THR/JPN/2, 12  February 2020. Japan 
does not collect statistics on contracts by its Annex  3 procuring en tities ("other entities" under the 
GPA 2012). The statistics of Japan for 2021 will be reported to the Committee on Government 
Procurement in April 2023.  
Source:  Japan's notifications of statistics under Article  XVI:4 of the GPA 2012 (WTO documents 
GPA/STA T(20)/JPN/1, 28  April 2022; and GPA/STAT(19)/JPN/1, 7  April 2021).  
Foreign participation  
3.155.   The principle of non -discrimination is pursued in all procurement activities except for 
preferences granted under RTAs to which Japan is a party. There are currently no RTAs in force that 
grant suppliers from non -GPA parties treatment more favourable than suppliers from GPA parties.  
Suppliers from non -GPA parties are not excluded from participating in GPA -covered procurement. 
However, there has been concern o ver the apparently low share of foreign companies in government 
procurement; it seems that this is partly due to non -regulatory barriers, the geographical distance 
from certain overseas markets, and a lack of knowledge of the local market.156 Foreign partic ipation 
in central government entities' and incorporated administrative agencies' (IAAs, some of which are 
listed as Annex  3 entities under Japan's GPA 2012 commitments) procurement is described in 
Tables  3.15 and 3.16.  
Table  3.15 Foreign participation in central government and IAA procurement, 2019 -20 
Year Relative foreign share of  
procurement value  Relative foreign share of  
number of contracts awarded   
2019 2.4%  2.4%  
2020 3.6%  3.7%  
Note:  The survey covered procurement of goods and services above the threshold of SDR 100,000 and 
excluded procurement of construction services and procurement by sub -central government entities.  
Source:  2019 and 2020 Government Procurement Results . Viewed at: 
https://www.kantei.go.jp/jp/kanbou/02tyoutatu/dai2/dai2honbun.pdf  and 
https://www.cas.go.jp/jp/seisaku/chotatsu /dai8/siryou2.pdf . 
 
156 EU-Japan Centre for Industrial Cooperation, Public Procurement in Japan: An Outline . Viewed at: 
https://www.eu -japan.eu/government -procurement/public -procurement -japan -outline . WT/TPR/S/ 438 • Japan  
 
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 Table  3.16 Awards to foreign suppliers by origin, 2019 -20 
Year  Number of contracts  Value  (JPY 100 million ) 
2019 United  States  169 252.7  
European  Union  179 310.4  
Others  33 55.0 
Total  381 618.2  
2020 United  States  284 480.1  
European  Union  256 407.8  
Others  54 88.7 
Total  594 976.6  
Note:  The survey covered procurement of goods and services above the threshold of SDR 100,000 and 
excluded procurement of construction services and procurement by sub -central government entities.  
Source:  2019 and 2020 Government Procurement Results . Viewed at:  
https://www.kantei.go.jp/jp/kanbou/ 02tyoutatu/dai2/dai2honbun.pdf  and 
https://www.cas.go.jp/jp/seisaku/chotatsu/dai8/siryou2.pdf . 
3.156.   Tables A3.2 and A3.3 detail foreign participation in Japan's government procurement, i n 
value terms, by type of product and service,  in 2019 and 2020 . Foreign participation shares were 
relatively high in certain categories of goods, including aircraft and associated equipment; medical, 
dental, surgical, and veterinary equipment; products fr om agriculture, and from agricultural and 
food processing; railway vehicles and associated equipment; and scientific and controlling 
instruments and apparatus.  
Sustainable procurement  
3.157.   Japan maintains a government procurement policy to promote environmental protection. 
During the review period, two revisions of the Basic Policy on Promoting Green Procurement (the 
implementation rules concerning the Green Procurement Act157) were notified to the WTO Committee 
on Government Procurement.158 The imple mentation rules concerning the Green Contract Act159, 
namely the Basic Policy for the Promotion of Contracts considering Reduction of Emissions of 
Greenhouse Gases and Others by Government Entities and Independent Administrative Agencies, 
etc., were also revised in February 2022.160 Major changes include adding the 2050 Carbon Neutrality 
Declaration and the 2030 Greenhouse Gas Emission Reduction Target (reduced by 46% from its 
2013 level), updating the status of climate change and global warming issues , and revising the 
government action plan.  
Small and medium -sized enterprises  
3.158.   Japan also maintains policies to promote the participation of SMEs in government 
procurement. The relevant guiding legislation is the Act on Ensuring the Receipt of Orders from t he 
Government and Other Public Agencies by Small and Medium Sized Enterprise Operators (Act No.  97 
of 1966), which remained unchanged during the review period.161 According to this Act, the central 
government and public corporations set their own procuremen t target values for the procurement 
from SMEs every fiscal year. In 2021, the target amount for the procurement from micro, small , and 
medium -sized enterprises (MSMEs) by the Government was set at JPY  4.8 trillion, or 61% of the 
total budget of public proc urement spending and the target amount for new MSMEs that are less 
 
157 Green Procurement Act. Viewed at: https://www.japaneselawtranslation.go.jp/en/laws/view/2719 . 
158 WTO documents GPA/LEGIS/JPN/3, 25  January  2021; and GPA/LEGIS/JPN/4, 15  April 2021. The last 
revision as of February 2022 strengthened the standards for recycled plastics and biomass plas tics and added 
three new items: cassette for tape printer, tape for tape printer, and faucets. Ministry of the Environment, 
Basic Policy on Promoting Green Procurement (Provisional Translation) . Viewed at: 
http://www.env.go.jp/policy/hozen/green/g -law/archive/bp/r3bp_en.pdf . 
159 Green Contract Act. Viewed at: https://www.japaneselawtranslation.go.jp/en /laws/view/2726 . 
160 Basic Policy on Green Contracts (February 2022). Viewed at: 
http://www.env.go.jp/policy/ga/kihonhoushin.html . 
161 Act on Ensuring the Receipt of Orders from the Government an d Other Public Agencies by Small and 
Medium Sized Enterprise Operators. Viewed at: https://elaws.e -
gov.go.jp/document?lawid=341AC0000000097 . WT/TPR/S/ 438 • Japan  
 
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 than 10 years old was set at 3%.162 Sub-central government entities follow the policies set up for 
the central government entities on an "endeavour basis".163 
Domestic review procedures  
3.159.   Complaints filed by suppliers are reviewed by the Government Procurement Review Board 
(GPRB).164 During the review period , a single complaint was brought against the tendering process 
conducted by the National Institute of Information and Communications Technology and was 
subsequently rejected by the GPRB on 24  August  2021.165 Sub-central government entities maintain 
their own procurement review mechanisms. According to the State Redress Act (Act No.  125 of 
1947), a supplier can file a lawsu it against the Government to seek compensation for loss that a 
public officer in charge of a tendering procedure has, in the course of their duties, unlawfully caused 
to the supplier intentionally or negligently.166 
Transparency  
3.160.   Japan publishes procurement notices in the Official Gazette, Kanpo  (available on both paper 
and electronic media), and its equivalents at the sub -central level.167 While there is no single web 
portal covering all procurement notices168, notices covered by the GPA 2012 can be found in t he 
electronic database of JETRO.169 This database covers information on procurement by central 
government entities, sub -central government entities, government -designated cities, and IAAs. Its 
English version contains only certain types of summary notices, such as notices of intended 
procurement, notices on the use of limited (single) tendering procedures, and notices of future 
procurement plans. In 2018, Japan launched the Chotatsu Portal to replace the Government 
Electronic Procurement System (GEPS).170 This new portal includes a search function for tender 
notices and allows suppliers to apply for the Unified Supplier Qualification, consult tender notices, 
and participate in electronic tendering procedures for central government entities. Sub -central 
governm ent entities have developed their own tendering platforms.171 
International cooperation  
3.161.   Many of the RTAs signed between Japan and its trade partners contain chapters on 
government procurement.172 During the review period, two more agreements with government 
procurement chapters were signed and subsequently came into force: the Japan -UK CEPA173 and 
the RCEP.174 Notably, while Japan's schedules under the Japan -UK CEPA are built on its GPA 2012 
commitm ents, the coverage of procurement under the former is further expanded to include more 
local government and other entities (including Kumamoto -shi and local independent administrative 
agencies), broader scope of applicable goods and services (such as goods  and services related to 
the operational safety of transportation, and telecommunications -related services), and lower 
procurement thresholds. In addition, a number of GPA -plus provisions, including mandatory 
 
162 In 2020, the target amount for the procurement from MSMEs was set at 60% (JPY  4.7 trillion) and 
the actual result was 55.5% (5.2  trillion). Viewed at: 
https://www.meti.go.jp /press/2021/09/20210924004/20210924004.html . 
163 Act No.  97 of 1966,  Article  8. 
164 WTO document WT/TPR/S/397/Rev.1, 6  November  2020. More information on the Government 
Procurement Challenge System (CHANS) can be viewed at: 
https://www5.cao.go.jp/access/english/chans_main_e.html . 
165 Cabinet Office, Public Release of Status of Receipt and Review of Complaints.  Viewed at: 
https://www5.cao.go.jp/access/english/shori -e.html . 
166 ICLG, Public Procurement Laws and Regulations: Japan 2022. Viewed at: https://iclg.com/practice -
areas/public -procurement -laws-and-regulations/japan . 
167 Kanpo  can be accessed at: https://kanpou.npb.go.jp . Notices of GPA Annex  3 entities are published 
on their respective websites. Viewed at: http://www.mofa.go.jp/mofaj/ecm/it/page24_000219.html . 
168 The list of procurement notice portals with brief descriptions can be viewed at: https://www.eu -
japan.eu/government -procurement/tender -monitoring -informations/tender -notice -portals#top -j. 
169 JETRO procurement database. Viewed at: https://www.jetro.go.jp/en/database/procurement/ . 
170 Chotatsu Portal. Viewed at: https://www.p -portal.go.jp . 
171 For public works at the sub -central leve l, the CALS/EC platform is widely used for electronic bidding 
procedures. MLIT, Reform of Public Works by IT: CALS/EC . Viewed at: 
https://www.mlit.go.jp/tec/it/cals/panf/CALS_E.pdf . 
172 WTO d ocument WT/TPR/S/351/Rev.1, 20  June 2017.  
173 MOFA, Japan -UK CEPA.  Viewed at: https://www.mofa.go.jp/files/100111408.pdf . The additional 
scope of coverage (Part 2 of Annex  10) is available at: https://www.mofa.go.jp/files/100111412.pdf . 
174 MOFA, Chapter 16: Government Procurement. Viewed at: 
https://www.mofa.go.jp/files/100129122.pdf . WT/TPR/S/ 438 • Japan  
 
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 publication of procurement notices by electroni c means and requirements regarding the application 
of environmentally friendly technical specifications and environmental conditions for contract 
performance, are included in the Japan -UK CEPA.  
3.3.7   Intellectual property rights  
3.3.7.1   Features and IP strategy  
3.162.   IP continues to be of vital importance to the Japanese economy. The Japan Patent Office 
(JPO) under the METI found a correlation between patent possession and operating profits on sales 
for SMEs, which account for 99.7% of all businesses in Japan.175 Although IP revenue, as shown in 
the balance of payments statistics, dropped with the emergence of the COVID -19 pandemic in 2020, 
it recovered in 2021, where it stood at over JPY  5.2 trillion (Chart  3.5). 
Chart  3.5 IP revenue, 2000 -21 
(JPY billion)  
 
Source:  Bank of Japan. Viewed at: http://www.stat -search.boj.or.jp/index_en.html . 
3.163.   According to OECD analysis of WTO international trade statistics, charges for the use of IP 
not included elsewhere (i.e. royalties and licensing revenue) constituted 23% of Japan's services 
exports in 2019, significantly higher than the OECD average of 9%.176 Japan's balance of payments 
surplus in charges for the use of IP declined f rom JPY  2.6 trillion in 2018 to JPY  2.0 trillion in 2021 
(Chart  3.6), influenced by increasing outflows for the use of copyright works and the negative impact 
of the COVID -19 pandemic on technology exports. World Bank data show that in 2021 Japan ran 
the fifth-highest surplus in the world.177 
 
175 JPO (2020), IP Support for SMEs in Japan . Viewed at: 
https://www.wipo.i nt/edocs/mdocs/mdocs/en/wipo_ip_tyo_20/wipo_ip_tyo_20_t_2 -related1.pdf . Intervention 
by Japan, Meeting of the Council for TRIPS of 19  October  2017.  
176 OECD (2021), OECD Economic Surveys: Japan 2021 , Figure 2.10, p. 16. Viewed at: 
https://www.oecd -ilibrary.org/economics/oecd -economic -surveys -japan -2021_24b2cbe6 -en.  
177 World Bank, World Development Indicators , 20 July 2022. Viewed at: 
https://data.worldbank.org/indicator/BM.GSR.ROYL.CD .  
01,0002,0003,0004,0005,0006,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Chart 3.6   IP revenue, 2000 -2021
Source:  Bank of Japan.  Viewed at:  http://www.stat -search.boj.or.jp/index_en.html.(JPY billion)WT/TPR/S/ 438 • Japan  
 
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 Chart 3.6 Charges for the use of IP, n.i.e., 2000 -21 
(JPY billion)  
 
Source:  Bank of Japan. Viewed at: http://www.stat -search.boj.or.jp/index_en.html . 
3.164.   Developing earnings from intangible IP assets is a key element of the Government's 
long-term growth strategy. The Intellectual Property Strategy He adquarters' 2018 IP Strategy 
Vision178 continues to offer medium - to long -term guidance on Japan's annual IP strategic 
programmes and the MAFF's five -year Intellectual Property Strategy 2025.179 Japan's Intellectual 
Property Strategic Program 2021 identified  an "imminent need to radically strengthen Japan's IP 
strategy activities" to boost competitiveness and address a variety of social issues.180 According to 
the Government, these priorities were set with the intention of positioning Japan to leverage and 
demonstrate its innovation capacity amid a global race for economic and social transformation based 
on digitalization and green policies.181 It would appear that there is a clear link between the 2018 IP 
Strategy Vision, the annual IP strategic programmes of 2 019-2021, various agency initiatives 
described below, and the modifications made to Japan's IP laws during the review period.  
3.3.7.2   Policies on promotion and commercialization of innovation  
3.165.   Japan's ranking in the World Intellectual Property Organization's ( WIPO ) Global Innovation 
Index fluctuated between 13th and 16th from 2017 to 2022.182 Japan scored highly in business 
sophistication, market sophistication, and knowledge and technology outputs , among the seven 
pillars of WIPO's 2022 assessme nt. Scores in institutions, creative outputs, and human capital and 
research lowered its overall rank. Its strengths included patent -related measurements and 
IP receipts and payments as a percentage of total trade; relative weaknesses included labour 
produ ctivity growth, FDI inflows as a percentage of GDP, and education expenditures as a percentage 
of GDP.183 
 
178 Prime Minister's Office of Japan (2018), Intellectual Property Strategy Vision: Towards a "Value 
Design Society" , 12 June. Viewed at: https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizai_vision_e.pdf . 
179 MAFF, IP Strategy of the MAFF. Viewed at: https://www.maff.go.jp/j/kanbo/tizai/brand/b_senryaku/ ; 
and Cabinet Office, Intellectual Property Strategy Headquarters . Viewed at: https://www -kantei -go-
jp.translate.goog/jp/singi/titeki2/index.html?_x_tr_sl=ja&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc . 
180 It prioritized (i)  strengthening capital and financial markets to encourage investment in and use 
of IP; (ii)  promo ting the strategic use of standards to expand markets where Japan has an advantage; 
(iii) improving the environment for data usage; (iv)  a digital content strategy, including integrated rights 
management; (v)  bolstering the use of IP among start -ups and SM Es and in agriculture; and (vi) restructuring 
the "Cool Japan" strategy to reinvigorate food service, tourism, culture and the arts, and events and 
entertainment sectors.  Prime Minister's Office of Japan (2021), Intellectual Property Strategic Program 2021 , p. 
14. Viewed at: https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20210713_e.pdf . 
181 Prime Minister's Office of Japan (2021), Intellectual Property Strategic Program 2021 . Viewed at: 
https://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20210713_e.pdf . 
182 WIPO, Global Innovation Index 2021 , Figure 8. Vi ewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_2000 -section3.pdf .  
183 WIPO, Global Innovation Index 2022: Japan . Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_2000_2022/jp.pdf . 
WT/TPR/S/ 438 • Japan  
 
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 3.166.   Japan has attributed sluggish R&D investment, corporate focus on tangible assets, and 
inadequate financing for innovation as factors that have led to i ts lower level of innovative activity 
relative to comparable economies. Japan's gross annual expenditure on R&D peaked in FY2019 at 
JPY 19.58  trillion, before declining to JPY  19.24  trillion in FY2020. As a percentage of GDP, its R&D 
expenditure has increa sed since 2016, and stood at 3.59% in FY2020.184 A lower percentage of 
Japan's total R&D is government -financed, compared with comparable economies. Japan hopes that 
2021 revisions to the Corporate Governance Code will motivate companies to proactively inve st in 
and leverage their IP, free from conventional business models.185 
3.167.   The Government has noted decreases in Japan's basic research capacity.186 Japan's national 
scheme for scientific research and technology development is governed by five -year Science, 
Technology, and Innovation Basic Plans, which are based upon the Science, Technology, and 
Innovation Basic Law. The Basic Law was amended during the review period to add "innovation" as 
a key pillar. Accordingly, the 6th Basic Plan, promulgated in 2021, did t he same. The 6th Basic Plan 
aims for, inter alia, government R&D investments of approximately JPY  30 trillion and public and 
private R&D investment of JPY  120 trillion; strategic use of IP and standards, domestically and 
internationally, to resolve social issues and capture international markets; an innovation ecosystem 
that is the foundation of new value -sharing industries; and strengthening research capabilities 
through new research systems that promote university reform and open science and data -driven 
research. It also calls for the promotion of public -private partnerships in fields where the Government 
has existing sectoral strategies: AI, biotechnology, quantum technology, and materials, to be applied 
in the fields of environment and energy, safety and  security, health and medical care, space, ocean, 
food, agriculture, forestry, and fisheries.187 The Integrated Innovation Strategy 2021 set forth the 
first annual action plan for the 6th Basic Plan, followed by the Integrated Innovation Strategy 2022.188 
3.168.   In May 2022, the Diet passed the Act for the Promotion of Ensuring National Security through 
Integrated Implementation of Economic Measures. The Act, to be fully implemented within two 
years, calls for a system to support the development of advanced critic al technologies, which may 
include quantum and AI technologies for domain s such as maritime and aerospace, as well as a 
system for  "non-disclosure of selected patent applications" akin to those in most other G20 
economies.189 Patent applications covering in ventions that, if made public, would likely impair 
national security and public safety due to external action will be initially reviewed by the JPO and 
then by the Cabinet Office. If the invention is designated, the publication of the application and the 
examiner's decision will be suspended, and designated inventions will be subject to restrictions on 
working and disclosure. After the designation is terminated, normal patent procedures will resume. 
Applicants are to be compensated by the Government for "no rmally occurring" losses. Those who 
leak undisclosed information of designated inventions will be subject to a maximum of two years in 
prison or a JPY  1 million fine.190 
3.169.   The JPO, in collaboration with other agencies and the National Center for Industrial Pr operty 
Information and Training (INPIT), continues to offer the resources, programmes, fee reductions, 
exemptions, and subsidies designed to support the registration and commercialization of 
 
184 Statistics Bureau of Japan, Summary of Results (2021): Results of the Survey of Research and 
Development . Viewed at: 
https://www.stat.go.jp/english/data/kagaku/1548.html#:~:text=Japan's%20total%20expenditure%20on%20
R%26D,from%20the%20previous%20 fiscal%20year .  
185 Prime Minister's Office of Japan (2021), Intellectual Property Strategic Program 2021 , p. 15. Viewed 
at: https://www.kantei.go.jp/jp/singi/titeki 2/kettei/chizaikeikaku20210713_e.pdf . 
186 Government of Japan (2021), Science, Technology, and Innovation Basic Plan , pp. 9 -10, and 53. 
Viewed at: https://www8.cao.go.jp/cstp/english/sti_basic_plan.pdf . 
187 Government of Japan (2021), Science, Technology, and Innovation Basic Plan . Viewed at: 
https://www8.cao.go.jp/cstp/english/sti_basic_plan.pdf .  
188 Government of Japan, Integrated Innovation Strategy 2021 . Viewed at: 
https://www8.cao.go.jp/cstp/e nglish/strategy_2021.pdf ; and Japan Cabinet Office, Council for Science, 
Technology and Innovation. Viewed at: https://www8.cao.go.jp/cstp/english/index.html .  
189 Cabinet Office, Working Group o n Non -disclosure of Selected Patent Applications (in Japanese). 
Viewed at: https://www.cas.go.jp/jp/seisaku/keizai_anzen_hosyohousei/dai2/siryou10.pdf . 
190 Japan Time s (2022) , "Japan P asses Economic Security Bill to Guard Sensitive Technology ", 11 May. 
Viewed at: https://www.japantimes .co.jp/news/2022/05/11/business/japan -passes -economic -security -bill-
protect -sensitive -technology/ ; and Global Compliance News  (2022), "Japan: New Act on the Promotion of 
Japan's Economic Security Enacted", 10  July. Viewed at: 
https://www.globalcompliancenews.com/2022/07/10/new -act-on-the-promotion -of-japans -economic -security -
enacted240622/ .  WT/TPR/S/ 438 • Japan  
 
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 technologies developed by universities, SMEs, and start -ups discu ssed in the previous Review.191 
JETRO also continues to offer support abroad through its Innovation Program and Global Acceleration 
Hubs.192 In an effort to promote the registration and use of trademarks among SMEs, the JPO 
published a guide to trademark rig hts for a non -expert audience based upon SME case examples.193 
As part of its IP finance promotion project194, the JPO engages affiliate research firms to evaluate 
and prepare valuation and business proposal reports for IP -based SMEs for submission to financ ial 
institutions to help them understand the business and growth potential of IP assets.  
3.170.   In late 2021, the JPO launched the Action Plan for Utilization of Intellectual Property by Small 
and Medium Enterprises and Startups195 with the Small and Medium Enterp rise Agency (SMEA), and 
the Action Plan for Utilization of Intellectual Property by Universities196 with the Industrial Science 
and Technology Policy and Environment Bureau of the METI. In addition to reinforcing interagency 
cooperation and collaboration am ong SME support institutions, the plan s call to enhance INPIT's 
prefecture -based Comprehensive IP Support Service Counters; expand the IP Acceleration Program 
for Startups and the IP Strategy Designer Dispatch Project (DDP)197; and establish a new 
Industry -University Collaboration/Startup Advisor project as well as subsidies for overseas patent 
filings for university start -ups.198 
3.171.   Since 2019, the JPO has dispatched "IP strategy designers" through the DDP to collaborate 
with researchers, industry, and universi ty administrators to discover dormant research results ripe 
for implementation and to develop IP commercialization strategies for nascent research projects. In 
2021, the knowledge gained over the prior three years was collected and published as the Manual 
for Social Implementation of University Research Results. The Manual offers guidance on 
(i) invention discovery; (ii)  formulation of patent application strategy; and (iii)  commercializing IP 
through an industry partnership or a university start -up. 
3.172.   In 2021 , patent applications filed in Japan by smaller entities made up approximately 17.5% 
of total applications, compared with 0.3% in 2016.199 The number of applications filed by universities 
and technology licensing organizations (TLOs) gradually trended upwar d in the past decade, peaking 
in 2019 at 7,608 before decreasing in 2020 and partially recovering in 2021.200 The University 
Network for Innovation and Technology Transfer's most recent annual survey revealed that 
university, TLO, and public research instit ute licensing revenues continued to grow during the review 
period, from JPY  3 billion in FY2016 to JPY  4.2 billion in FY2019. However, the percentage of 
surveyed institutions that launched a start -up – 36.6% in FY2019 – remains well below the 87.7% 
rate am ong analogous institutions in the United  States, where universities drive the innovation 
economy.201 
3.173.   The JPO is continuing to adapt to the Fourth Industrial Revolution and the impact of Big  Data, 
AI technologies, and the Internet of Things (IoT).202 In 2020, it reported on the status of patent 
 
191 JPO, Status Report 2022 , pp. 108 -110. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf ; and WTO document 
WT/TPR/S/397/Re v.1, 9  November  2020, paras.  3.187 -3.189.  
192 JETRO, Innovation Program . Viewed at: https://www.jetro.go.jp/services/innovation.html ; and  
JETRO, Global Acceleration Hub. Viewed at: https://www.jetro.go.jp/theme/innovation/gahub/ .  
193 WTO document IP/C/M/94/Add.1, 16  April 2020, para.  288. 
194 See also IP Finance Portal. https://chizai -kinyu.g o.jp/.  
195 METI, Formulation of an Action Plan to Promote the Utilization of Intellectual Property by SMEs and 
Start-ups. Viewed at: https://www.meti.go.jp/press/2021/12/20211 227002/20211227002.html .  
196 METI, Action Plan for Utilizing University Intellectual Property . Viewed at: 
https://www.meti.go.jp/policy/innovation_corp/daig aku_chizaikatsuyou_actionplan.html .  
197 IP Strategy Designer Dispatch. Viewed at: https://ip -designer.jp/ .  
198 JPO, New Year Greetings 2022 – MORI Kiyoshi, JPO Commissioner. Viewed at: 
https://www.jpo.go.jp/e/introduction/message/2022newyear.html ; and Mondaq, Sononda & Kobayashi IP Law 
(2022), Worldwide: IP News Bulletin for Japan and China – May 2022 . Viewed at: 
https://www.mondaq.com/patent/1202488/ip -news-bulletin -for-japan -and-china -may-2022.  
199 H. Lee, et al. (2022), "Life Sciences IP Trends from Japan, Korea and China", Managing IP , 29 March.  
200 JPO, JPO Status Report 2022 , p. 17. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/0101.pdf .  
201 UNITT, Summary of University Technology Transfer Survey  2020 Edition . Viewed at: 
https://unitt.jp/survey/patent/ . See also AUTM Licensing Activity Surveys. Viewed at: 
https://autm.net/surveys -and-tools/surveys/licensing -survey/2020 -licensing -survey . 
202 JPO, Status Report 2022 , p. 56. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf .  WT/TPR/S/ 438 • Japan  
 
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 applications for AI -related inventions both in Japan and overseas.203 In 2021, the JPO launched a 
new Team for Supporting AI Examinations, following the 2017 establishment of an IoT Examination 
Team.204 Also in 2 021, the JPO published AI/IoT examination guidelines in manga  format, with some 
chapters available in video format, in an effort to appeal to non -patent specialists205, and updated a 
comparative study with the European Patent Office on examination practices for software -related 
inventions, including AI -related inventions.206 The JPO also seeks to harness AI technology for its 
own purposes: in 2022 it adopted a second six -year Action Plan for the Utilization of AI Technology 
to improve the  efficiency and quality of its work.  
3.174.   With standard essential patents (SEPs) playing an increasing and ever complex role in IoT 
innovation, the JPO developed and compiled relevant resources on a dedicated SEP portal.207 In 
2022, it launched a revised second edition of its non -binding Guide to Licensing Negotiations 
Involving SEPs, incorporating information learned from various studies it undertook of domestic and 
overseas SEP developments.208 The METI has also developed SEP -related guidance. In 2020, the 
METI released a Guide to Fair Value Calculation of SEPs for Multi -Component Products, and in 2022, 
Good Faith Negotiation Guidelines for SEP Licenses.209 Reportedly, only a few stakeholders have filed 
petitions seeking an advisory opinion on the essentiality of a patent under the JPO's Hantei  for 
essentiality check , and the JPO has yet to issue any opinions.210 Relatedly, Japan has not been a 
major destination for global SEP litigation, although this could change as car makers increasingly 
employ mobile technology .211 
3.3.7.3   International cooperation and harmonization  
3.175.   Japan pursues enhanced standards of IP protection with its trading partners in various 
multilateral fora, including WIPO, UPOV212, the G7 and G20, APEC, and the OECD, in addition to the 
WTO.213 At WIPO, Japan f inances and supports IP development activities in developing and 
least-developed countries through annual voluntary contributions exceeding CHF 5.8  million to 
Funds -in-Trust Japan IP Global.214 It also supports the development of WIPO -CASE global dossier 
information sharing system and became a partner of WIPO GREEN in 2020. Japan also facilitates the 
establishment and implementation of plant variety protection systems in Asia through the East Asia 
Plant Variety Protection Forum.215 At the WTO, Japan is a dyna mic participant in the TRIPS Council, 
where it actively engages in topics including IP and innovation, IP and the public interest, and 
 
203 JPO, Status Report 2021 , pp. 60 -61. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2021/document/index/all.pdf .  
204 METI (2021), Development of Examination Environment for AI -related Inventions Starts . Viewed at: 
https://www.meti.go.jp/english/press/2021/0120_002.html .  
205 JPO, Examination Guidelines in Manga: AI/IoT Edition . Viewed at: 
https://www.jpo.go.jp/e/system/l aws/rule/guideline/patent/comic_ai_iot_e.html .  
206 EPO and JPO (2021), Comparative Study on Computer Implemented Inventions/Software Related 
Inventions . Viewed at: https://www.jpo.go.jp/news/kokusai/epo/document/software_201903/01_en.pdf .  
207 JPO, Standard Essential Patents  Portal  Site. Viewed at: 
https://www.jpo.go.jp/e/support/general/sep_portal/ . SEPs cover technologies that are essential to implement 
standards in fields such as wireless communications.  
208 JPO (2022), Guide to Licen sing Negotiations involving Standard Essential Patents . Viewed at: 
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/document/rev -seps-tebiki/guide -seps-en.pdf .  
209 METI (2020), Guide to Fair Value Calculation of Standard Essential Patents for Multi -Component 
Products . Viewed at: 
https://www.meti.go.jp/policy/mono_info_service/mono/smart_mono/sep/200421sep_fairvalue_hp_eng.pdf ; 
and METI (2022), "'Good Faith Negotiation Guidelines for Standard Essential Patent Licences' Established", 
31 March. Viewed at: https://www.meti.go.jp/english/press/2022/0331_001.html . 
210 S. Sarkar (2022), " JPO Must Stay Neutral in Its SEP Policy Review, Urge Sources ", Managing IP , 
27 January. Viewed at: https://www.managingip.com/article/2a5d0ozy2bahhhktnda80/jpo -must-stay-neutral -
in-its-sep-policy -review -urge-sources .  
211 T. Abe (2021), " The Strategic  Acquisition and Utilisation of SEPs : Reviewing Japan's IP Promotion 
Plan 2021", Managing IP , 26 July. Viewed at: 
https://www.managingip.com/article/2a5czh91g6c8zwx9ino5c/the -strategic -acquisition -and-utilisat ion-of-
seps-reviewing -japans -ip-promotion -plan-2021. 
212 International Union for the Protection of New Varieties of Plants.  
213 MOFA IP Affairs Division, MOFA's Initiatives to Promote Protection of Intellectual Property Rights . 
Viewed at: https://www.mofa.go.jp/files/000228532.pdf . 
214 WIPO, Funds -in-Trust Japan Industrial Property Global . Viewed at: 
https://w ww.wipo.int/cooperation/en/funds_in_trust/japan_fitip_global/index.html .  
215 WTO document IP/C/R/TC/JPN/2, 23  September  2021; and EAPVP Forum, About Forum . Viewed at: 
http://eapvp.org/about/ .  WT/TPR/S/ 438 • Japan  
 
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 proposals related to the COVID -19 pandemic. It also supports transparency in its domestic system 
of IP protection and the  review function of the TRIPS Council by routinely notifying legislative 
changes and reporting on its implementation of Article  66.2 and technical and financial cooperation 
activities. Japan has yet, however, to update its 1997 responses to the Checklist o f Issues on 
Enforcement.216 
3.176.   Japan pursues higher levels of IP protection among its trading partners through a range of 
regional and bilateral agreements, including the UK -Japan CEPA and the RCEP. It is also negotiating 
a Japan -China -Republic of Korea FTA, a s well as an EPA with Türkiye that may address IP. Japan 
also promotes IP harmonization and efforts to facilitate the establishment and protection of rights 
through MoUs, high -level dialogues, partnerships, and consultations at various levels.217 
3.177.   The JPO se eks to harmonize IP systems and their operation through various collaborative 
efforts with like -minded foreign counterparts, including Group B+218; the IP5219 and its sister fora, 
the ID5 (designs) and TM5 (trademarks); the Patent Prosecution Highway (PPH) a nd Global PPH220; 
a US -Japan Collaborative Search Pilot Programme wherein examiners of each office share 
independently conducted prior art searches when a patent has been applied for in both countries221; 
and a comparative study with the European Patent Offi ce on examination practices for 
software -related inventions, including IoT, AI, and 3D printing technologies.222 
3.178.   The JPO also supports the development of IP systems in emerging and developing countries 
by collaborating with ASEAN, the African Regional Intellectual Property Organization, African 
Intellectual Property Organization (OAPI)223, the Gulf Cooperation Council, and IP offices of Japan's 
trading partners. Recent initiatives include PPH Plus and Cooperation for Facilitating Patent Grant 
(CPG).224 The JPO also regularly provides training courses to IP office personnel; dispatches on -site 
experts, including international training instructors in patent examination; and conducts or 
participates in online information -sharing sessions, particularl y on examination practices for 
emerging technologies and AI -related inventions, the significance of IP to SMEs and start -ups, and 
anti-counterfeiting measures.  
3.179.   Similarly, the Copyright Division of the Agency for Cultural Affairs (ACA) supports overseas 
copyright systems and anti -piracy efforts through bilateral consultations, training programmes for 
government officials, copyright awareness campaigns, and seminars and symposia.225 Japan also 
undertakes IP training initiatives in cooperation with WIPO and the  Japan International Cooperation 
 
216 WTO document IP/N/6/JP N/1, 18  February  1997.  
217 JPO, Status Report 2022 , pp. 84 -85. 
218 Group B+ is a framework of the IP offices of 46 countries and 2 organizations created to promote 
and facilitate progress on key issues under consideration at WIPO and substantive patent law har monization. 
JPO, Status Report 2022 , p. 78. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf .  
219 The IP5 is a foru m of the five largest IP offices in the world, and is composed of the European Patent 
Office, the JPO, the Korean Intellectual Property Office, the National Intellectual Property Administration of the 
People's Republic of China, and the U.S. Patent and Tra demark Office (USPTO).  
220 The PPH allows an application that is determined to be patentable by the office of first filing to 
undergo accelerated examination and simplified procedures with the office of second filing. The JPO had 
established PPH relationship s with 45 fellow IP offices as of April 2022. Since 2019, new arrangements have 
been put in place with India, Morocco, France, and the Kingdom of Saudi Arabia. A pilot programme was 
launched with Brazil in 2022. The Global PPH is a multinational framework PPH, for which the JPO serves as the 
secretariat. JPO, Annual Patent Report 2022 , pp. 60 -61. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf . 
221 JPO, Status Report 2022 , p. 98. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf . 
222 EPO and JPO (2021), Comparative Study on Computer Implemented Inventions/Software Related 
Inventions . Viewed at: https://www.jpo.go.jp/news/kokusai/epo/document/software_201903/01_en.pdf .  
223 The OAPI is an intergovernmental organization that facilitates cooperation in IP matters among i ts 
17 mostly French -speaking member States.  
224 PPH Plus, exclusively in place with the Brunei IP office, allows requesting applicants to acquire 
accelerated patent rights in Brunei by using JPO examination results. The CPG is a framework for accelerating 
patent grants in Cambodia and the Lao People's Democratic Republic without examination for an invention that 
has already been granted a patent in Japan. JPO, Status Report 2022 , p. 97. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf . 
225 ACA, Anti-Piracy Initiatives . Viewed at: https://www.bunka.go. jp/english/policy/copyright/piracy/ . WT/TPR/S/ 438 • Japan  
 
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 Agency, and in partnership with the Content Overseas Distribution Association and International 
Intellectual Property Protection Forum.226 
3.180.   Companies and other entities experiencing infringement abroad may request assistance from 
the JPO's General Counterfeit and Piracy Countermeasures Counter227, JETRO overseas offices228, 
and/or MOFA's IP Officers.229 Investigations and consultations with foreign counterparts follow as 
needed.  
3.3.7.4   General regulatory framework  
3.181.   Japan participates in international conventions and treaties relating to IP, including 
21 treaties administered by WIPO.230 The Beijing Treaty on Audi ovisual Performances entered into 
force for Japan on 28  April 2020.231 Japan has also entered into a range of bilateral, regional, and 
multilateral instruments, including RTAs, investment treaties, framework agreements, MoUs, and 
memoranda of cooperation th at address IP. Nearly all of Japan's RTAs in force contain IP provisions, 
and the majority, including the recent UK -Japan CEPA and the RCEP, contain high levels of 
IP standards.232 
3.182.   The institutional framework of Japan's IP regime did not change during the r eview period.233 
Table  A3.4 summarizes the substantive laws addressing each main type of IPR, several of which 
were modified during the review period, as discussed in the relevant sections below.  
3.3.7.5   Patents  
3.183.   Several amendments were made to the Patent Act during  the review period. In an effort to 
address the increasing complexity of licensing schemes and digital technologies, as of April 2022 
right holders no longer need to obtain the consent of non -exclusive licensees prior to abandoning or 
correcting a patent.234 As of April 2023, rights that have been forfeited due to unintentionally missed 
deadlines may be more readily restored with the submission of a short statement and payment of a 
fee.235 Before this amendment, a "valid reason", strictly interpreted by the J PO, had been required 
to revive expired rights. The new standard is similar to that applied in the United  States.236 
3.184.   The Patent Attorney Act was also updated during the review period. Consultation and support 
for filing foreign applications for IP rights re lated to agriculture, forestry, and fisheries (i.e. new plant 
varieties and geographical indications) were added as business that can be undertaken by patent 
attorneys. They may also undertake consultation services in conjunction with the preparation of 
opinions under the system for seeking comments from third parties in patent infringement litigation 
(Section  3.3.7.13). The Japanese name of corporations to which patent attorneys belong was 
changed from tokkyo gyōmu hōjin  to benrishi hōjin , and the number o f patent attorney members 
 
226 WTO document IP/C/R/TC/JPN/2, 23  September  2021.  
227 JPO, Consultation Petition System . Viewed at: https://www.jpo.go.jp/support/ipr/kyogi.html . The 
Counter provides annual reports on its services and the petitions received. See JPO, Annual Report of the 
Government's General Counterfeit and Piracy Countermeasure Desk . Viewed at: 
https://www.jpo.go.jp/resources/report/mohohin/nenji.html . 
228 JPO, Status Report 2022 , p. 139. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/9900.pdf .  
229 MOFA, Japanese Company Support – Intellectual Property Protection Support . Viewed at: 
https://www.mofa.go.jp/mofaj/annai/zaigai/chiteki/index.html . 
230 WIPO, WIPO -Administered Treaties : Contracting Parties – Japan . Viewed at: 
https://www.wipo.int/treaties/en/ShowResults.jsp?country_id=87C .  
231 WIPO , WIPO -Administered Treaties : Contracting Parties – Marrakesh VIP Treaty . Viewed at: 
https://www.wipo.int/treaties/en/ShowResults.jsp?lang=en&treaty_id=843 . 
232 See JPO Annual Report 2021, pp. 89 -90, for highlights of the IP chapters of the UK -Japan CEPA and 
the RCEP. Viewed at: https://www.jpo.go.jp/e/resources/report/statusreport/2021/document/index/all.pdf .  
233 WTO documents WT/TPR/S/397/Rev.1, 9  November  2020, para.  3.206; and WT/TPR/S/351/Rev.1, 
20 June 2017, Chart 3. 4. 
234 Patent Act (Act No.  121 of 1959); and WTO document IP/N/1/JPN/62, 16  June 2022.  
235 JPO, Cabinet Order to Set the Date of Enforcement of Part of the Act for Partial Revision of the Patent 
Act. Viewed at: https://www.jpo.go.jp/system/laws/rule/seireikaisei/tokkyo/tokkyo_kaisei_20220721.html . 
236 See 35 USC §27.  WT/TPR/S/ 438 • Japan  
 
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 required for incorporation and survival of a corporation to which patent attorneys belong was 
changed from "two or more" to "one or more".237 
3.185.   The Ordinance for Enforcement of the Patent Act was also amended during the review period . 
Multiple dependent claims depending on other multiple dependent claims are no longer allowed in 
applications from April 2022 onwards, in order to harmonize with international standards and reduce 
excessive examination and monitoring by third parties.238 
3.186.   The process of obtaining a patent remains unchanged since the previous Review.239 The 
Examination Guidelines for Patent and Utility Models were updated to provide enhanced guidance to 
applicants.240 Fees for patent registrations and annuity payments increased in April 2022 in order to 
address deficits attributed to increasing examinatio n burdens, digitization efforts, and renovation of 
government buildings.241 
3.187.   The JPO aims to provide the "world's fastest and utmost quality patent examinations".242 
Pendency periods increased during the review period, with most of the increase occurring in F Y2020 
following the arrival of the COVID -19 pandemic (Table  3.17). As of 2020, Japan had the shortest 
pendency times among major IP offices, and the fourth fastest in the world.243 
Table  3.17 Average patent app lication pendency periods, in months, FY2017 -FY2020  
 First action (FA) pendency  Total pendency  
Normal  Accelerated  Super -
accelerated  
FY2018  9.3 2.3 0.7 14.1 
FY2019  9.5 2.5 0.6 14.3 
FY2020  10.2 2.7 0.9 15.0 
FY2021  10.1 2.7 0.8 15.2 
Source:  JPO Annual Patent Report 2022 , p. 3. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf ; JPO Status Report 
2022, pp. 47 -48. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf ; JPO Status 
Report 2021 , pp. 51 -52. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2021/document/index/0201.pdf ; JPO Status 
Report 2020 , pp. 51 -52. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2020/document/index/0201.pdf ; and JPO 
Status Report 2019 , pp. 56 and 58. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2019/document/index/0201.pdf . 
3.188.   Accelerated and super -accelerated examination programmes reduced average FA pendency 
for qualifying applications. Accelerated examination is availabl e upon request for applications that, 
inter alia, are (i)  made by SMEs, individuals, universities, or public research institutes, or approved 
or authorized TLOs; (ii)  filed in more than one IP office, including the Receiving Office under the 
Patent Coopera tion Treaty ; (iii) for inventions that have already been commercialized or plan to be 
commercialized within two years; or (iv)  for environmental -related technologies that save energy 
 
237 JPO, JPO Status Report 2022 , p. 118. Viewed at:  
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/0203.pdf .  
238 JPO, JPO Status Report 2022 , p. 52. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf .  
239 For a visual depiction of the examination, appeals, trials, and opposition process for patents , see 
JPO, JPO Status Report 2022 , p. 132. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf .  
240 JPO, Revision Hist ory of Examination Guidelines for Patent and Utility Model in Japan . Viewed at: 
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/kaitei/index.html ; and Examination Handbook for 
Patent and Utility Model in Japan . Viewed at: 
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/handbook_shinsa/ .  
241 Patent Act (Act No . 121 of 1959); and WTO document IP/N/1/JPN/62, 16  June 2022. See also JPO, 
JPO Status Report 2022 , p. 119. Viewed at: 
https://www.jpo.go.jp/e/resources/repo rt/statusreport/2022/document/index/0203.pdf . 
242 JPO, JPO Status Report 2022 , p. 46. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/docu ment/index/all.pdf .  
243 WIPO, World Intellectual Property Indicators 2021 , p. 52. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf . Japan ranked behind Iceland , the 
Russian  Federation, and Spain.  WT/TPR/S/ 438 • Japan  
 
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 and contribute to CO 2 reduction.244 Super -accelerated examination may be r equested for "highly 
important" applications, including inventions already put into practice by either a start -up or an 
applicant who has filed for patent protection abroad.245 Requests for accelerated examination were 
fairly stable during the review period , while requests for super -accelerated examination more than 
doubled.246 
3.189.   During the review period, the number of patent applications filed annually worldwide 
continued to grow. Japan, with 8.8% of global filings in 2020, remains the third most popular filin g 
destination in the world.247 The annual number of patent applications received by the JPO has 
continued a pattern of either negligible growth or decline since 2005. Filings dropped by over 6% in 
2020 compared to 2019 and remained nearly flat in 2021, due mostly to declines in domestic filings. 
Compared with most other top global IP offices, the proportion of domestic filings is high in Japan248, 
but the percentage of foreign filings has continued to increase, with 23.1% of applications originating 
from abro ad in 2021, compared to 16.3% in 2012 (Table  3.18). A substantial number of foreign 
applicants originate from the United  States, the European  Union, China, and the Republic of 
Korea.249 
Table  3.18 Patent applications and patents granted, 2012 -21 
 
2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Patent applications to JPO by origin  
Japan  287,013  271,731  265,959  258,839  260,244  260,292  253,630  245,372  227,348  222,452  
Other  55,783  56,705  60,030  59,882  58,137  58,189  59,937  62,597  61,124  66,748  
Total 342,796  328,436  325,989  318,721  318,381  318,481  313,567  307,969  288,472  289,200  
% Other  16.3%  17.3%  18.4%  18.8%  18.3%  18.3%  19.1%  20.3%  21.2%  23.1%  
Patents granted by JPO by origin  
Japan  224,917  225,571  177,750  146,749  160,643  156,844  152,440  140,865  140,322  141,853  
Other  49,874  51,508  49,392  42,609  42,444  42,733  42,085  39,045  39,061  42,519  
Total 274,791  277,079  227,142  189,358  203,087  199,577  194,525  179,910  179,383  184,372  
% Other  18.2%  18.6%  21.7%  22.5%  20.9%  21.4%  21.6%  21.7%  21.8%  23.1%  
Patent applications originating from Japan to all patent offices  
Total 
applications 
of Japanese 
origin  487,360  470,615  464,274  456,305  454,973  459,406  458,927  450,627  423,254  .. 
.. Not available.  
Source:  Information provided by the authorities.  
3.190.   The top five fields of technology for patents granted in 2020 fell into the broad categories of 
electronical machinery, apparatus, energy; furniture, games250; computer technology; transport; 
and medical technology. The fields of control251, IT methods for management, other consumer 
goods, and biotechnology grew in 2020; optics; semiconductors; engines, pumps, turbines; and 
digital communications declined steadily during the review period.252 
 
244 JPO, Outline of Accelerated Examination and Accelerated Appeal Examination . Viewed at: 
https://www.jpo.go.jp/e/system/patent/shinsa/jp -
soki/#:~:text=The%20accelerated %20examination%20system%2Faccelerated,applicants'%20or%20appellant
s'%20request . 
245 JPO, Outline of Super Accelerated Examination . Viewed at: 
https://www.jpo.go.jp/e/system /patent/shinsa/jp -super_soki/index.html .  
246 JPO, JPO Annual Patent Report 2022 , p. 58. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/010 0.pdf. 
247 WIPO, World Intellectual Property Indicators 2021 , p. 7. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf .  
248 WIPO, World Intellectual Property Indic ators 2021 , p. 13. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf .  
249 JPO, JPO Status Report 2019 , pp. 18 -19; and JPO Status Report 2016 , pp. 11 and 13.  
250 Games includes computer games.  
251 Covers elements for controlling and regulating electrical and non -electrical systems and referring test 
arrangements, traffic control, or signalling systems.  
252 WIPO IP Statistics Data Center, September 2021. Viewed at: https://www3.wipo.int/ipstats .  WT/TPR/S/ 438 • Japan  
 
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 3.191.   Japan's grant rate stabilized during the review period; it is on the higher side among top 
global IP offices.253 The JPO attributes this to applicants' shift from quantity to quality.254 As shown 
in Table  3.18, the proportion of patents granted to applicants of foreign origin seemingly peaked in 
2015 at 22.5%, before falling in 2016 and climbing to 23.1% in 2021. Most patents granted to 
non-residents in 2021 fell into the fields of medical or veteri nary science, hygiene; electronic 
communication technique; computing, calculating, or counting; basic electric elements; and organic 
chemistry.255 
3.192.   Japan ranks second in the number of applications filed abroad, by origin. Of patent 
applications originating i n Japan, around 45% are filed abroad, a figure that increased only slightly 
during the review period. Applicants from Japan account for the largest non -resident share at 
IP offices in Germany (36.5%), Indonesia (33.8%), and China (31.4%).256 
3.3.7.6   Utility models (UMs)  
3.193.   The Utility Model Act was amended, effective April 2022, to no longer require right holders 
to obtain the consent of non -exclusive licensees prior to abandoning or correcting a utility model. 
Transmittal and search fees increased for internati onal applications, from JPY  80,000 to JPY  160,000 
for Japanese -language applications, and from JPY  166,000 to JPY  186,000 for English -language 
applications, also effective as of April 2022. As of April 2023, rights that have been forfeited due to 
unintenti onally missed deadlines may be more readily restored with the submission of a short 
statement and payment of a fee.  
3.194.   The Ordinance for Enforcement of the Utility Model Act was also amended on 
25 February  2022 and came into effect on 1  April 2022.  Multiple d ependent claims depending on 
other multiple dependent claims are no longer allowed in applications from April 2022 onwards, to 
reduce excessive examination and monitoring by third parties. The Examination Guidelines for Patent 
and Utility Models were updat ed accordingly.257 
3.195.   The examination, appeal, trial, grant, and opposition processes for a UM did not change 
during the review period.258 Applications and registrations of UMs in Japan have been declining in 
recent years  (Table  3.19).259 However, 2020 applicati ons grew 15% over 2019 due to innovations 
triggered by the COVID -19 pandemic in products such as masks. Applications returned to 2019 
levels in 2021.260 
 
253 WIPO, World Intellectual Property Indicators 2021 , p. 21. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf  and JPO, JPO Status Report 2022 , p. 14. 
Viewed at: https://www.jpo.go.jp/e/resources/report/status report/2022/document/index/all.pdf .  
254 JPO Annual Patent Report 2022 , p. 4. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf . 
255 Information provided by the authorities.  
256 WIPO, World Intellectual Property Indicators 2021 , pp. 14 -16. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf . 
257 JPO, Revision History of Examination Guidelines for Patent and Utility Model in Japan . Viewed at: 
https://www.jpo.go.jp/e/system/laws/rule/guideline/patent/kaitei/ index.html .  
258 For a visual depiction of the examination, appeals, trials, and opposition process for UMs, see JPO,  
JPO Status Report 2022 , p. 133. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/9900.pdf .  
259 WIPO, World Intellectual Property Indicators 2021 , p. 22. Viewed at: 
https://www.wipo.int/e docs/pubdocs/en/wipo_pub_941_2021.pdf .  
260 JPO, JPO Status Report 2022 , pp. 19 -20. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/docume nt/index/all.pdf ; and JPO Annual Patent 
Report 2022 , p. 3. Viewed at: https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf . WT/TPR/S/ 438 • Japan  
 
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 Table  3.19 UM applications and registrations, 2012 -21 
 
2012 2013  2014  2015  2016  2017  2018  2019  2020  2021  
UM applications to JPO, by origin  
Japan  6,292  5,965  5,429  5,213  4,928  4,578  3,810  3,693  4,377  3,762  
Other  1,820  1,657  1,666  1,647  1,552  1,528  1,578  1,548  1,641  1,477  
Total 8,112  7,622  7,095  6,860  6,480  6,106  5,388  5,241  6,018  5,239  
UM registrations granted by JPO, by origin  
Japan  6,221  5,738  5,322  5,098  4,756  4,526  3,796  3,535  3,921  3,911  
Other  1,833  1,625  1,695  1,597  1,541  1,498  1,507  1,498  1,597  1,588  
Total 8,054  7,363  7,017  6,695  6,297  6,024  5,303  5,033  5,518  5,499  
Source:  Information provided by the authorities.  
3.3.7.7   Plant v ariety rights and genetic resources  
3.196.   As discussed in the MAFF's Intellectual Property Strategy 2025, amendments to the Plant 
Variety Protection and Seed Act (PVP Act) and  a new Act on Prevention of Unfair Competition on 
Genetic Resources of Livestock (Livestock GR Act) were adopted by the Diet in 2020. These 
regulations  followed a series of high -profile exports of registered plants without right holder 
consent261, and infringement of IP by fraudulent distribution of Wagyu genetic resources in Japan.262 
3.197.   The Livestock GR Act creates an IP right in genetic resources of improved livestock breeds, 
such as Wagyu embryos and semen. Civil injunctions, damages, and credit recover y measures are 
available against parties that unfairly acquire, use, or transfer protected genetic resources, or 
unfairly use livestock produced with livestock genetic resources to produce further livestock or 
livestock genetic resources. Malicious miscond uct, including export in violation of contract terms, 
may subject individuals to criminal penalties of up to JPY  10 million and/or a 10 -year prison term, 
and companies to a fine of up to JPY  300 million.263 
3.198.   The revisions to the PVP Act empower plant breeders' right holders to extend their rights to 
cover exportation of propagating materials and harvested materials that have been put on the 
market with their permission. Any propagating materials of protected varieties that are offered for 
sale or trans ferred to a third party must be labelled as a protected variety subject to export 
restrictions. Right holder authorization is also now required for any acts in respect of propagating 
material, including farm -saved seed. The amendments also introduced a sta tutory presumption that 
the characteristics of allegedly infringing varieties and those of the protected variety are identical 
based upon a comparison of the characteristics of the allegedly infringing varieties with the 
description of the protected variet y at the time of grant.264 
3.199.   The Plant Variety Protection Office of the MAFF administers the plant variety registration and 
protection system.265 Examination, application, and registration fees were revised during the review 
period to cover the actual cost of growing trials and on -site inspections and to reduce the total cost 
of maintaining protection over time.266 As of 31  March  2020, 7,750 plant breeder titles were in force. 
Almost 65%  of protected plant varieties were flowers, and 56% were held by seed compan ies. 
 
261 See, e.g. S.  Kaneko (2022), "Shine Muscat Grape Smuggling to China Costs Japan $70m a Year", 
Nikkei Asia , 6 July. Viewed at: https://asia.nikkei.com/Business/Agriculture/Shine -Muscat -grape -smuggling -to-
China -costs-Japan -70m-a-year; The Sankei Shimbun (2021), "Japan's Top Quality Fruits Finally Get Legal 
Protecti on from Illicit Overseas Growers", JapanForward , 16 July. Viewed at: https://japan -
forward.com/japans -top-quality -fruits-finally -get-legal-protection -from-illicit-overseas -
growers/#:~:text=Economy%20%26%20Tech -
,Japan's%20Top%20Quality%20Fruits%20Finally%20Get%20Legal%20Protection%20from%20Illicit,South%2
0Korea%2C%20damaging%20Japanese%20agriculture .  
262 MAFF, Intellectual Property Strategy 2025 . Viewed at: 
https://www.maff.go.jp/j/kanbo/tizai/brand/b_senryaku/attach/pdf/index -25.pdf .  
263 Atsumi & Sakai (2021), Agricultural Forestry and Fisheries Law Practice Team Newsletter , April. 
Viewed at: https://www.aplawjapan.com/archives/pdf/en_newsletter -affl-006.pdf .  
264 Information provided by the authorities. T.  Miyamoto  (2021) , The Plant Variety Protection System in 
Japan and Japan's PVP Cooperati on, 20 October. Viewed at: 
https://www.upov.int/edocs/mdocs/upov/en/upov_sem_ge_2_21/upov_sem_ge_2_21_ppt_4.pdf .  
265 PVP Office at the MAFF: http://www.hinshu2.maff.go.jp/en/about/outline.html .  
266 Information provide d by the authorities. T . Miyamoto (2021), The Plant Variety Protection System in 
Japan and Japan's PVP Cooperation , 20 October. Viewed at: 
https://www.upov .int/edocs/mdocs/upov/en/upov_sem_ge_2_21/upov_sem_ge_2_21_ppt_4.pdf .  WT/TPR/S/ 438 • Japan  
 
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 Annual plant breeder applications and grants have continued to decline since their 2007 peaks267, 
with 2020 applications down 13% from 2019. In 2020, Japan was the eighth most popular global 
destination for applications, and the sixth largest originato r. Thirty -six percent of filings received by 
Japan's PVP Office originated abroad.268 
3.3.7.8   Designs  
3.200.   Significant revisions to the Designs Act promulgated in 2019 and discussed during the 
previous Review269 entered into force in 2020 and 2021. Additional amendments were promulgated 
during the current review period. Application procedures were simplified by allowing a single 
collective application for multiple designs and abolishing a granular article classification table. 
Applicants who miss designated deadlines or g race periods may also now avail themselves of new 
remedial measures.270 An additional amendment removed the requirement that the right holder 
obtain the consent of non -exclusive licensees prior to abandoning a design.271 Documentation to 
demonstrate priority  submitted with an international application through WIPO is now also deemed 
to have been simultaneously submitted to the JPO Commissioner.272 And as of April 2023, rights 
that have been forfeited due to unintentionally missed deadlines may be more readily restored with 
the submission of a short statement and payment of a fee.273 
3.201.   The Examination Guidelines for Design were accordingly revised twice in 2020 and again in 
2021 to clarify procedures for applicants. The examination, appeal, trial, grant, and opposi tion 
processes did not, however, change during the review period.274 First action (FA) pendency periods 
increased from 6.2 to 6.4 months and total pendency from 7.0  to 7.4 months from FY2018 to 
FY2021.275 Average FA pendency for accelerated examination, avai lable on request in certain 
situations, was 2.3 months in 2021, and only 0.6 months when counterfeit products were already 
on the market.276 
3.202.   Although the annual number of global design applications originating from Japan declined 
during the review period277, in 2020 Japan was the eighth -largest global originator as well as the 
eighth most popular destination for design filings.278 The total number of annual design applications 
to and registrations by JPO remained fairly stable during the review period  (Table  3.20), with 
 
267 T. Miyamoto (2021), The Plant Variety Protection System in Japan and Japan's PVP Cooperation , 
20 October. Viewed at: 
https://www.upov.int/edocs/mdocs/upov/en/upov_sem_ge_2_21/upov_sem_ge_2_21_ppt_4.pdf . 
268 WIPO, World Intellectual Property Indicators 2021 , pp. 179 and 181. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf .  
269 WTO document WT/TPR/S/397/Rev.1, 6  November  2020, Section 3.3.7.7.  
270 Design Act (Act No.  125 of 1959); and WTO document IP/N/1/JPN/55 (31  May 2021). See also JPO 
(2021), Revision of the Design Act in Japan: Contributing to Innovation and Branding , April. Viewed at: 
https://www.jpo.go.jp/e/resources/report/sonota -info/d ocument/pamphlet/isho_kaisei_en.pdf ; and JPO, JPO 
Status Report 2020 , pp. 114 -116. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2020/docum ent/index/all.pdf . 
271 Design Act (Act No.  125 of 1959); and WTO document IP/N/1/JPN/64, 16  June 2022.  
272 Design Act (Act No.  125 of 1959); and WTO document IP/N/1/JPN/45, 21  February  2020. See also 
JPO, JPO Status Report 2021 , p. 122. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2021/document/index/0203.pdf . 
273 JPO, Cabinet Order to Set the Date of Enforcement of Part of the Act for Partial R evision of the Patent 
Act. Viewed at: https://www.jpo.go.jp/system/laws/rule/seireikaisei/tokkyo/tokkyo_kaisei_20220721.html .  
274 For a visual depiction o f the examination, appeals, trials, and opposition process for industrial 
designs, see JPO,  JPO Status Report 2022 , p. 133. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf .  
275 JPO Annual Patent Report 2022 , p. 20. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf .  
276 JPO, JPO Status Report 2022 , p. 58. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf . 
277 JPO Annual Patent Report 2022 , p. 25. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf . 
278 WIPO, World Intellectual Property Indicators 2021 , pp. 131 and 147. Viewed at: 
https://www.wipo.int/edo cs/pubdocs/en/wipo_pub_941_2021.pdf . WT/TPR/S/ 438 • Japan  
 
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 applications from abroad accounting for an increasing share, reaching 32% in 2021.279 Most foreign 
applicants originated from China, the United  States, or the Republic of Korea.280 
Table  3.20 Design applications and registrations, 2012 -21 
 
2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Design applications to JPO, by origin  
Japan  27,934  26,407  24,868  24,804  24,543  24,432  23,453  22,867  22,458  22,078  
Other  4,457  4,718  4,870  5,099  6,336  7,529  7,953  8,622  9,340  10,447  
Total 32,391  31,125  29,738  29,903  30,879  31,961  31,406  31,489  31,798  32,525  
Design registrations granted by JPO, by origin  
Japan  24,610  24,272  23,092  21,950  21,206  21,480  21,339  20,854  18,782  19,395  
Other  3,739  4,016  4,214  4,347  4,138  5,855  6,279  6,702  7,635  8,095  
Total 28,349  28,288  27,306  26,297  25,344  27,335  27,618  27,556  26,417  27,490  
Source:  Information provided by the authorities.  
3.203.   Among the top 10 global originators, Japan was unusual in that neither textiles and 
accessories nor furniture and household goods were among the top three sectors in which its 
applications were filed in 2020. Rather, the top three sectors were transport, information and 
communications technology ( ICT) and audiovisual, and tools and machines.281 
3.3.7.9   Trademarks  
3.204.    Amendments were made to the Trademark Act during the review period. As of April  2023, 
certain unintentionally forfeited rights due to missed deadlines may  be restored with the submission 
of a short statement and payment of a fee.282 For international applications, the time -frame during 
which goods amendments may be submitted by a representative in Japan was extended from three 
months after the notice of reas ons of refusal was sent to as long as the case is pending before the 
JPO.283 Trademark fees were also modified; registration and renewal fees increased by 12% -16% in 
April 2022. From April 2023 the method of paying fees for an individual international appli cation 
under the Madrid System will align with most other contracting parties and change from a two -part 
payment to a single lump sum amount due at filing.284 
3.205.   The April 2020 revision of the Examination Guidelines for Trademarks clarified, inter alia, 
that exterior and interior building designs may be protected as three -dimensional trademarks.285 
This coincided with the entry into force of 2019 amendments to the Design Act, which newly protects 
spatial designs, including interior and exterior building designs.286 
3.206.   The examination, appeal, trial, grant, and opposition processes did not change during the 
review period.287 The annual number of trademark applications submitted to the JPO has seemingly 
stabilized since its 2017 peak (Table  3.21), although global trademark filings have continued to 
grow. From 2019 to 2020, Japan dropped from the third most popular global filing destination to the 
sixth.288 The proportion of foreign applications received by JPO increased, from 18.9% in 2017 to 
27.9% in 2021, as residential filings declined. In 2018, China surpassed the United  States as the 
 
279 JPO Annual Patent Report 2022 , p. 22. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf . 
280 JPO, JPO Status Report 2022 , p. 22. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/0101.pdf .  
281 WIPO, World Intellectual  Property Indicators 2021 , p. 152. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf .  
282 JPO, Cabinet Order to Set the Date of Enforcement of Part of the Act f or Partial Revision of the Patent 
Act. Viewed at: https://www.jpo.go.jp/system/laws/rule/seireikaisei/tokkyo/tokkyo_kaisei_20220721.html . 
283 JPO, JPO Stat us Report 2020 , p. 117. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2020/document/index/0203.pdf .  
284 JPO, JPO Status Report 2022 , pp. 118 -119. Viewed at: 
https://www.jpo.g o.jp/e/resources/report/statusreport/2022/document/index/0203.pdf .  
285 JPO, Examination Guidelines for Trademarks . Viewed at: 
https://www.jpo.go.jp/e/system/laws/rule/guideline/trademark/kijun/index.html .  
286 Design Act (Act No.  125 of 1959); and WTO document IP/N/1/JPN/46, 2  June 2020.  
287 For a visual depiction of the examination, appeals, trials, and opposition process for trademarks, see 
JPO, JPO Status Report 2022 , p. 134. Viewed at: 
https:/ /www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/9900.pdf .  
288 WIPO, World Intellectual Trademark Indicators 2021 , pp. 76 -79. Viewed at: 
https://www.wipo.int/edocs /pubdocs/en/wipo_pub_941_2021.pdf .  WT/TPR/S/ 438 • Japan  
 
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 top foreign originat or, a position it has continued to hold.289 In 2021, 11% of trademark applications 
originated from China, followed by the United  States with 5.6%.290 The research and technology 
sector garnered the biggest proportion of JPO filings in 2020, followed by leisu re and education and 
business services. With respect to global trademark applications originating from Japan, the top 
three sectors were research and technology, leisure and education, and health. 291 
Table  3.21 Trademark applications and registrations, 2012 -21 
  2012  2013  2014  2015  2016  2017  2018  2019  2020  2021  
Trademark applications, by origin  
Japan  95,548  92,496  100,053  117,960  133,337  154,780  145,274  148,913  135,375  133,009  
Other  23,462  25,179  24,389  29,323  28,522  36,159  39,209  41,860  45,697  51,662  
Total 119,010  117,675  124,442  147,283  161,859  190,939  184,483  190,773  181,072  184,631  
Trademark registrations, by origin  
Japan  77,129  82,736  79,562  75,965  81,838  84,960  89,108  84,221  103,117  125,277  
Other  19,231  20,663  20,334  22,120  23,369  26,220  27,439  25,638  32,196  48,821  
Total 96,360  103,399  99,896  98,085  105,207  111,180  116,547  109,859  135,313  174,098  
Source:  Information provided by the authorities.  
3.207.   Examination pendency periods grew during the review period to 10 months (FA pendency) 
and 11.2  months (total pendency) in FY2020, before declining in FY2021 to 8 months (FA pendency) 
and 9.6  months (total pendency) in FY2021.292 The JPO continued to offer " Fast Track" and 
"accelerated" examination under certain conditions.293 Applications eligible for Fast Track 
examination automatically received a shortened FA pendency of about 6 months294, whereas 
accelerated examination, available on request for those with certain urgent needs, provided an 
average  FA pendency of 2.1 months in 2021 (compared to 1.7 months in 2018).295 The number of 
requests for accelerated examination grew significantly during the review period, from 8,110 in 2019 
to over 11,000 in 2020 and 20 21, as innovators rapidly developed new products and brands with 
urgent need for protection in response to the COVID -19 pandemic. Relatedly, JPO registered 
unusually high numbers of trademarks in both 2020 and 2021, although the total number of 
application s remained relatively stable.296 
3.208.   Japan's Regional Collective Trademark System, introduced in 2006 and managed by JPO297, 
co-exists with the sui generis system of geographical indication ( GI) protection under the authority 
of the MAFF298 (Section  3.3.7.10). A Regional Collective Trademark Guidebook was published in 2022 
to promote awareness of the System and the registered marks.299 Use of the System continued to 
grow during the review period, w ith 730 trademarks registered at the end of March 2022, compared 
 
289 JPO, JPO Status Report 2019,  p. 32. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2019/document/inde x/0101.pdf .  
290 JPO, JPO Status Report 2022, p. 27. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf . 
291 WIPO, World  Intellectual Trademark Indicators 2021 , pp. 104 -105. Viewed at: 
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_941_2021.pdf . 
292 JPO Annual Patent Report 2022 , p. 29. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/index/0100.pdf . 
293 JPO, Fast Track Examination . Viewed at: 
https://www.jpo.go.jp/e/system/trademark/shinsa/shohyo_fast_e.html ; and JPO, Outline of Accelerated 
Examinations and Accelerated Appeal Examinations for Trademarks . Viewed at:  
https://www.jpo.go.jp/e/system/trademark/shinsa/outline_accelerated_trademark.html .  
294 JPO, JPO Status Report 2022 , p. 64. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/0201.pdf .  
295 JPO, JPO Status Report 2019 , pp. 68 -70; and JPO Status Report 2022 , p. 62. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/0201.pdf . 
296 JPO, JPO Status Report 2022, p. 26. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf . 
297 Additional details regarding the system, including an outline, examination guidelines, and an 
examinati on manual are available on JPO's website: 
https://www.jpo.go.jp/e/system/trademark/gaiyo/chidan/index.html .  
298 WTO document WT/TPR/S/351/Rev.1, 20  June 2017, Table  3.37.   
299 JPO (2022), Regional Collective Trademark Guide Book . Viewed at: 
https://www.jpo.go.jp/system/trademark/gaiyo/chidan/document/tiikibrand/guidebook -catalog.pdf .  WT/TPR/S/ 438 • Japan  
 
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 to 645 at the end of 2018.300 As of 5  August  2022, three overseas trademarks had been registered: 
Zhenjiang Vinegar, Prosciutto di Parma, and Ceylon Tea.301 
3.3.7.10   Geographical indications  
3.209.   The 2014 Ac t on Protection of the Names of Specific Agricultural, Forestry and Fishery 
Products and Foodstuffs (GI Act) continues to provide the framework for Japan's sui generis system 
of protection for GIs of foods, beverages, and agricultural and marine products. No amendments 
were undertaken during the review period.  
3.210.   The procedures and agencies responsible for GI registration have not changed. As of 
July 2022, Japan had registered 117 domestic GIs for agricultural products302 and 23 domestic GIs 
for liquor.303 As of  February 2022,  Japan also directly protects 262 European GIs (106 GIs for 
agricultural, forestry, and fishery products and foodstuffs and 156 GIs for liquor) through the 
EU-Japan EPA.304 Under the UK -Japan CEPA, Japan protects 6 UK GIs  (3 GIs for agricultu ral, forestry, 
and fishery products and foodstuffs and 3 GIs for liquor)  as of January 2021.  Japan also protects 
GIs from Chile, Mexico, and Peru under its EPAs, which stipulate mutual protection of GIs.305 
3.3.7.11   Undisclosed information and trade secrets  
3.211.   The Unfair Competition Prevention Act (UCPA) protects trade secrets and well -known 
trademarks and prohibits unfair competition.306 No amendments to the UCPA have been 
implemented since 2018. A METI subcommittee has been tasked with evaluating the effectiveness 
of the 2018 amendments and preparing future revisions to the UCPA, which may include 
(i) expanding existing presumptions to ease the burden of proof on the plaintiff and allow courts to 
award higher damages; (ii)  establishing a regime to extend protection under the UCPA to licensees 
of technical know -how and data; and (iii)  introducing statutory clauses extending the jurisdiction of 
Japanese courts and application of the UCPA to cross -border trade secret misappropriation.307 
3.212.   The METI has continued to publish  and update influential but non -binding commentaries and 
guidelines on the UCPA, including an article -by-article commentary308, Management Guidelines for 
Trade Secrets309, Handbook for the Protection of Confidential Information310, and Guidelines on 
Shared Da ta with Limited Access .311 
3.3.7.12   Copyright  
3.213.   Several amendments to the Copyright Act were promulgated or came into force during the 
review period. Amendments in 2014 expanded protection to performers in their performances and 
they entered into force in 2020 in tand em with the entry into force of the Beijing Treaty on 
Audiovisual Performances. An amendment in 2018 regarding the use of copyrighted materials by 
 
300 JPO, JPO Status Report 2019 , p. 72; and JPO Annual Patent Report 2022 , p. 64. Viewed at: 
https://www.jpo.go.jp/resources/report/nenji/2022/document/in dex/0100.pdf . 
301 JPO, List of Regional Collective Trademark Registrations . Viewed at: 
https://www.jpo.go.jp/system/trademark/gaiyo/chidan/shoukai/ichiran/index.html .  
302 MAFF, Information on Registered GIs . Viewed at: 
http://www.maff.go.jp/e/policies/intel/gi_act/reg ister.html . 
303 Information from the authorities. See also National Tax Agency, Information on GIs Protected in 
Japan . Viewed at: https://www.nta.go.jp/english/taxe s/liquor_administration/geographical/02.htm .  
304 Information from the authorities. See also European Commission, EU-Japan EPA , Annex  14-B. 
Viewed at: http://trade.ec.europa.eu/doclib/p ress/index.cfm?id=1684 . 
305 Information from the authorities.  
306 The METI offers a graphical overview of the UCPA online. METI, Overview of the Unfair Competition 
Prevention Act . Viewed at: https://www.meti.go.jp/english/policy/economy/chizai/chiteki/overview_ucpa.html .  
307 Chambers and Partners (2022), Trade Secrets 2022: Japan , 28 April. Viewed at: 
https://practiceguides.chambers.com/practice -guides/trade -secrets -2022/japan/trends -and-
developments/O10527 .  
308 METI. Viewed at: https://www.meti.go.jp/policy/economy/chizai/chiteki/pdf/20190701Chikujyou.pdf . 
309 METI. Viewed at: https://www.meti.go.jp/english/policy/ economy/chizai/chiteki/pdf/0813mgtc.pdf .  
310 METI. Viewed at: https://www.meti.go.jp/policy/economy/chizai/chiteki/pdf/handbook/full.pdf ; and 
https://www.meti.go.jp/english/policy/economy/chizai/chiteki/pdf/21_0127a.pdf .  
311 METI. Viewed at: 
https://www.meti.go.jp/english/policy/economy/chizai/chiteki/pdf/guidelines_on_shared_data_with_limited_ac
cess.pdf .  WT/TPR/S/ 438 • Japan  
 
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 non-profit schools in online lessons was also implemented in 2020, a year earlier than initially 
planned cons idering the COVID -19 pandemic. The amendment established a system permitting 
teachers to use copyrighted works in online lessons without right holder consent. Right holder 
compensation is coordinated by the newly established Society for the Administration of 
Remuneration for Public Transmission for School Lessons (SARTRAS). The obligation to compensate 
right holders was waived for the first year, April 2020 -March 2021.312 
3.214.   Additional amendments to the Copyright Act were promulgated in 2020. One amendment 
permits a licensee to continue to exploit a copyrighted work even after the copyright is transferred. 
Previously, such licences were governed solely by contract law and were not effective against 
transferees. Other amendments expanded enumerated rights restric tions with respect to 
(i) unintended appearances in photographic works; and (ii) agency copying of documents needed to 
accurately and timely examine the registration of a GI under the GI Act and a plant variety under 
the PVP Act. A mechanism was also estab lished to facilitate providing proof of registration for 
computer software programs that are the subject of litigation.313 
3.215.   Other 2020 amendments were designed to strengthen copyright protection and included 
measures to counter online piracy. The definition of protectable technical access controls, designed 
to prevent unauthorized use or copying, was expanded to include new technologies, such as licence 
authentication. Providing codes and services that interfere with such restrictions now constitutes 
infringe ment and is subject to civil and criminal penalties.314 These amendments correspond to 2018 
amendments to the UCPA.315 
3.216.   Japan does not pursue site blocking as an anti -piracy tool to the same degree as other 
developed jurisdictions, largely due to concerns regarding consistency with Article  21(2) of 
Constitution and Article  4 of the Telecommunications Business Act, relating to privacy and 
censorship.316 In 2018, the Government asked Internet service providers to voluntarily block three 
notorious mang a pirate sites317 as an emergency measure while a panel was convened to review 
potential site -blocking legislation. No such legislation has been presented to the Diet to date.318 
3.217.   The Government has attempted to reduce the accessibility of pirate sites by cou ntering 
"leech", also known as "index" sites, which provide links to infringing content but do not host it 
themselves. Amendments in 2020 to the Copyright Act criminalized the operation of index sites, as 
well as the provision of computer programs/apps wit h similar functions. Violations are punishable 
by up to five years in prison and/or a fine of JPY  5 million, upon the complaint of a right holder. 
Posting URLs or links to pirated content on an index site or app is also now considered copyright 
infringemen t, punishable by up to three years in prison and/or a fine of JPY  3 million, upon the 
complaint of a right holder.319 The Government has indicated that these amended provisions of the 
 
312 Copyrigh t Act (Act No.  48 of 1970); WTO document IP/N/1/JPN/49, 1  July 2020; and ACA, Regarding 
the Early Enforcement of the Public Transmission Compensation System for Class Purposes. Viewed at: 
https://www.bunka.go.jp/seisaku/chosakuken/92169601.html . Operational guidelines for the compensation 
scheme and associated regulations are available at: https://sartras.or.jp/seido/ . 
313 Computer programs may be registered in Japan with the Software Information Center (SOFTIC). 
Viewed at: https://www.softic.or.jp/ .  
314 ACA, Amendment to the Copyright Act Approved by the Ordinary Session of the Diet  in 2020 . Viewed 
at: https://www.bunka.go.jp/english/policy/copyright/amendments_2020/ . 
315 WTO document WT/TPR/S/397/Rev.1, 20  November  2020, para.  3.236.  
316 N. Cory (2018), "T he Normalization of Website Blocking Around the World in the Fight Against Piracy 
Online", Information Technology & Innovation Foundation, 12  June. Viewed at: 
https://itif.org/publications/2018/06/12/normalization -website -blocking -around -world -fight-against -piracy -
online/ .  
317 The administrator of one of the pirate manga websites, Mangamura, was found guilty of copyright 
infringem ent in 2021 and sentenced to three years in prison, a fine of JPY  10 million, and an additional fine of 
JPY 62 million (equivalent to revenue earned and deposited in a foreign bank account). R.A.  Pineda (2021), 
"Fukuoka Court Hands Guilty Sentence to Manga mura Piracy Site Administrator", Anime News Network , 2 June. 
Viewed at: https://www.animenewsnetwork.com/new s/2021 -06-02/fukuoka -court-hands -guilty -sentence -to-
mangamura -piracy -site-administrator/.173502 . Civil suits brought by anime publishers against Mangamura are 
ongoing.  
318 Freedom House, Freedom on the Net 2020: Japan . Viewed at: 
https://freedomhouse.org/country/japan/freedom -net/2020 .  
319 ACA, Amendment to the Copyright Act Approved by the Ordinary Session of the Diet in 2020 . Viewed 
at: https://www.bunka.go.jp/english/policy/copyright/amendments_2020/ .  WT/TPR/S/ 438 • Japan  
 
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 Copyright Act could be used to combat illicit streaming devices.320 Platfo rm service providers, such 
as YouTube or Google, are not liable except in malicious circumstances where requests to remove 
infringing links have been unjustifiably ignored for an extended period of time.  
3.218.   Other 2020 amendments to the Copyright Act that came  into effect in 2021 address the 
demand side of online piracy. Downloading a copyrighted work with the knowledge that it had been 
illegally uploaded is now subject to injunctions and civil compensatory damages. Criminal penalties 
are available, upon the co mplaint of a right holder, for continuous or repeated downloads of 
copyrighted works whose authentic versions had been made available for a fee. Penalties may 
include two years in prison and/or a fine of up to JPY  2 million. The amendments expanded liabili ty 
and remedies that have been available since 2012 for unlicensed downloads of music and movies to 
other copyrighted works, including manga, books, newspaper articles, academic journals, and 
computer software. Exceptions are available for  (i) unintended a ppearances in photography at the 
time of recording a screenshot; (ii)  "minor cases" such as one to several frames of a manga; 
(iii) secondary production/parody; and (iv)  cases in which there are special circumstances where the 
rights of copyright holders a re not unjustifiably harmed. Streaming of pirated works is not addressed 
by the amendments.321 
3.219.   Further amendments to the Copyright Act were promulgated in 2021. Existing limitations to 
copyright that allowed broadcasting companies to use certain works in br oadcasts without 
permission were expanded to include simultaneous distribution online. Copyright holders who grant 
a licence for broadcasting are now also presumed to have granted a licence for simultaneous online 
distribution unless the person manifests a n intention to the contrary upon granting the authorization . 
Broadcasters also no longer need to obtain prior consent to use sound recordings or to use 
performances in reruns when such works are simultaneously distributed online , excluding 
(i) performances for which a copyright management service provider manages the right; and 
(ii) cases in which information on the right holder has been disclosed by a method specified by the 
Commissioner of the ACA.322 
3.220.   Other 2021 amendments improve public ac cess to information. The National Diet Library 
(NDL) collects and stores copies of all media published in Japan. Previously, the NDL could only send 
digitized versions of out -of-print materials from its collection to public and university libraries. The 
amendments permit the NDL to send such materials directly to preregistered general users, who can 
also copy them for personal use. When the amendments take effect, the NDL and public and 
university libraries will also be able to provide digital copies – not just physical copies – of materials 
for investigation and research purposes directly to preregistered general users by email, as long as 
measures are taken to (i)  prevent competition with legitimate e -book markets; (ii)  avoid the spread 
of unauthorized dig ital data; and (iii)  ensure compliance with legal requirements. The copyright 
holder must also be compensated for these transmissions.323 
3.221.   In 2020 the Supreme Court issued a significant judgment, finding that a retweeted photo, 
which appeared on the user's t imeline with the author's name cropped out, violated the author's 
moral right of attribution. The photo's cropped timeline display had been a function of Twitter's 
system and could not be adjusted by the user. The full image, including the author's name, w ould 
display when the thumbnail image was clicked. The Court concluded that the retweeter bore the 
burden of confirming an image's source, the author's attribution, and the author's consent prior to 
retweeting. One of the five justices who heard the case d issented.324 
3.3.7.13   Enforcement  
3.222.   Counterfeiting and piracy continue to cause meaningful losses to the Japanese economy. A 
2021 report commissioned by JPO estimates JPY  30.9 billion in lost profits by Japanese industrial 
 
320 APEC/USPTO (2021), Report on Results of Survey Questionnaire on Domestic Treatment of Illicit 
Streaming Devices by APEC Economies , pp. 7 and 76 -82. Viewed at: 
https://www.uspto.gov/sites/default/files/documents/APEC -DomesticTreatmentofISDs.pdf .  
321 ACA, Amendment to the Copyright Act Approved by the Ordinary Session of the Diet in 2020 . Viewed 
at: https://www.bunka.go.jp/english/policy/copyright/amendments_2020/ .  
322 Copyright Act (Act No.  48 of 1970); and WTO document IP /N/1/JPN/61, 3  March  2022.  
323 Copyright Act (Act No.  48 of 1970); and WTO document IP/N/1/JPN/61, 3  March  2022.  
324 Case 2018 (Ju) 1412, Minshu Vol. 74, No.  4 (21  July 2020). Viewed at: 
https://www.courts.go.jp/app/hanrei_en/detail?id=1776 .  WT/TPR/S/ 438 • Japan  
 
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 property right holders to counterfeiting, an increase of nearly 30% over JPO's 2019 estimate.325 By 
one estimate, there were over 600  million monthly visits to piracy sites in Japan as of July 2021.326 
The Content Overseas Distribution Association estimates that pirated movies, publications, music, 
and games cost Japanese publishers JPY  330 billion -JPY 430 billion per year. Annual damages from 
online Japanese pirate manga sites have been estimated at JPY  1 trillion for 2021, an increase of 
over 450% from 2020, and 150% of estimated legitimate sales of m anga works. Losses from 
unauthorized copies of retro games and business software are also of concern.327 
3.223.   The Government offers various consultation desks through which counterfeiting and piracy 
can be reported and addressed. Various Government agencies and entities are engaged in anti -piracy 
and counterfeiting efforts, including the JPO, MOFA, JETRO, the National Police Agency, Japan 
Customs, the ACA, and attorney associations.328 The Comprehensive Measures and Work Schedule 
to Combat Online Piracy, first pub lished in October 2019 and updated in April 2021, sets forth a 
"whole of government" approach to tackling online piracy.329 On 1 June 2022, the ACA launched a 
new portal dedicated to online piracy countermeasures for right holders, and it opened a consultat ion 
desk on 30  August  2022.330 In addition to enforcing recent Copyright Act amendments 
(Section  3.3.7.12), the Government aims to strengthen international cooperation and law 
enforcement to improve detection of foreign organizers/managers of pirate website s and will 
promote security software capable of deterring access to pirate websites.331 
3.224.   Japan Customs is responsible for enforcing IPRs at the border and seizes infringing goods. 
There were no changes to the Customs Act during the review period from 2018 to 2021 that 
materially impact the process, availability, or protections associated with IPR enforcement at the 
border. The estimated value of IPR -infringing goods seized by Japan Customs grew from 
JPY 13.5 billion in 2018 to JPY  16.4 billion in 2021. The number of total annual cases and articles 
seized has fluctuated in recent years (Chart  3.7). The overwhelming majority of cases (96%) and 
articles (76%) seized from 2017 -21 relate to trademark infringement, although seizures related to 
copyright grew steadily during the same period. Bags and apparel accounted for more than half of 
import seizu re cases, but nearly as many electric appliances were seized as articles of apparel. 
Significant numbers of computer products, housewares, and textiles were also seized. Almost 80% 
 
325 Estimated total loss of profits was based upon responses to an annual JPO survey of Japanese 
companies registered with JPO as industrial property right holders. Viewed at: 
https://www.jpo.go.jp/resources/statistics/mohou_higai/document/index/0000.pdf  (2019) and 
https://www .jpo.go.jp/resources/statistics/chizai_katudo/2021/index.html , Table  1-17 (2021).  
326 Copyright Subdivision of the Cultural Council (2022), Interim Summary: Responses to Cross -Border 
Acts of Content Piracy  (tentative translation), p. 2. Viewed at: 
https://www.bunka.go.jp/english/policy/copyright/pdf/93705201_01.pdf . This estimate was based on data 
from a SimilarWeb survey that targeted copyright infringement sites handling mo vies, TV shows, animation, 
and manga (excluding music). Although the analysis was conducted with multiple access analytical tools for 
estimating the number of visits to piracy sites, it should be understood that there are limitations to accurately 
assessin g the situation with currently available technology.  
327 Copyright Subdivision of the Cultural Council (2022), Interim Summary: Responses to Cross -Border 
Acts of Content Piracy  (tentative translation). Viewed at: 
https://www.bunka.go.jp/english/policy/copyright/pdf/93705201_01.pdf ; and Association of Copyright for 
Computer Software (2022), Software Right Infringement and ACCS Countermeasures . Viewed at: 
https://www.bunka.go.jp/english/policy/copyright/the_5th_meeting.html . 
328 JPO, If You Are a Victim – Consultation Desk . Viewed at: 
https://www.jpo.go.jp/support/ipr/soudan.html .  
329 Various agencies, Comprehensive Measures and Work Schedule to Combat Online Piracy . Viewed at: 
https://www.kantei.go.jp/jp/singi/titeki2/chitekizaisan2020/pdf/kaizoku_taisaku.pdf .  
330 ACA, Launched Internet Portal Site for Countermeasures against Copyright Infringement by Piracy . 
Viewed at: https://www.bunka.go.jp/seisaku/chosakuken/93713502.html ; Copyright Subdivision of the 
Cultural Council (2022), Interim Summary: Responses to Cross -Border Acts of Content Piracy  (tentative 
translation). Viewed at: https://www.bunka.go.jp/english/policy/copyright/pdf/93705201_01.pdf ; and ACA, 
Opened a Consultation Desk for Pirated Copyright Infringement . Viewed at : 
https://www.bunka.go.jp/seisaku/chosakuken/93757002.html .  
331 Information by the authorities.  WT/TPR/S/ 438 • Japan  
 
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 of seized articles were traced to China332 and a growing proportion during t he review period were 
traced to Viet  Nam333 (10.7%) and the Philippines (3.9%).334 
Chart 3.7 Import seizures, 2014 -21  
 
Source:  Japan Customs, 2021 Seizure Statistics of IPR Border Enforcement . Viewed at: 
https://www.customs.go.jp/mizugiwa/chiteki/pages/statistics/statistics2021.pdf . 
3.225.   Amendments in 2021 to t he Design Act and Trademark Act, and in 2022 to the Customs Act, 
which entered into force on 1  October 2022, were implemented in response to increasing imports of 
counterfeit goods for personal use via e -commerce platforms. Importing counterfeit goods for 
personal use does not constitute infringement in Japan. The amendments clarify that foreign 
businesses that use a person in Japan to bring in counterfeit products by mail and other means 
commit infringement, and Japan Customs may accordingly seize the good s.335 Questions have been 
raised about the effectiveness of these amendments and whether they could be circumvented by 
designating an individual, rather than a business, as the sender.336 
3.226.   Seizures of exports remained marginal during the review period, althou gh over 10,000 
articles of apparel destined for the United  States were seized in a single case in 2020.337 Low rates 
of seizure at the border of infringing goods destined for export have been attributed to strong 
domestic enforcement. The number of individu als arrested annually for IP infringement and cases 
handled in the courts continued their downward trend since 2015, although small increases were 
observed in 2021 (Chart  3.8) due to increases in copyright infringement cases and arrests. 
Eighty -five percen t of 2021 trademark infringement cases and 89% of 2021 copyright infringement 
cases involved the use of the Internet. Although overshadowed by trademark and copyright 
 
332 The proliferation of counterfeit goods and pirated content on the Internet were among the topics 
discussed at the 8th meeting of the Japan -China Joint IP Working Group in 2021. JPO, JPO Status Report 2022 , 
p. 103. Viewed at: https://www.jpo.go. jp/e/resources/report/statusreport/2022/document/index/all.pdf . 
333 Japan and Viet  Nam signed a Memorandum of Cooperation in Protection and Enforcement of 
Intellectual Property Rights on 1  April 2021 in order to further enhance future cooperation on 
anti-counterfeiting measures. METI (2021), "Japan and Vietnam Sign MOC on Cooperation Measures against 
Counterfeit Goods", 2  April. Viewed at: https://www.meti.go.jp/english/press/2021/0402_00 1.html .  
334 Japan Customs, 2021 Seizure Statistics of IPR Border Enforcement . Viewed at: 
https://www.customs.go.jp/mizugiwa/chiteki/pages/statistics/statistics2021.pdf . 
335 JPO, JPO Status Report 2022 , p. 117.  
336 Chambers and Partners (2022), Trade Marks  2022: Japan , 1 March. Viewed at: 
https://practiceguides.chambers.com/practice -guides/trade -marks -2022/japan .  
337 Japan Customs, 2021 Seizure Statistics of IPR Border  Enforcement . Viewed at: 
https://www.customs.go.jp/mizugiwa/chiteki/pages/statistics/statistics2021.pdf . 
WT/TPR/S/ 438 • Japan  
 
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 violations, arrests and cases involving trade secret misappropriation have grown steadily  over the 
past five years and accounted for 9% of IP infringement arrests and 5% of cases in 2021.338 
Chart 3.8 IP cases handled by courts, and individuals arrested for IP infringement, 
2009 -21  
(Number)  
 
Source: National Policy Agency (in Japanese). Viewed at: 
http://www.npa.go.jp/bureau/safetylife/keizai/niseburanndohinkaizokubannnokonnzetu.pdf . 
3.227.   The legal framework surrounding the judicial enforcement of IPRs did not change during the 
review period. Japan has historically been a comparatively challenging litiga tion venue for enforcing 
IP rights, but that is changing.339 Patent right holders were markedly more successful at the trial 
level in 2018 -20 than in 2014 -17.340 During the review period, the Government continued to 
implement various recommendations of a Feb ruary 2019 joint JPO/METI Industrial Structure Council 
report, which proposed improved evidence collection procedures, damages calculations, court 
procedures, and litigation costs.341 A bill pending before the Diet in 2019 and discussed in the 
previous Revi ew342 was adopted, and associated amendments have entered into force. Courts 
handling patent infringement disputes may now engage neutral technological experts to conduct and 
report upon on -site inspections of suspected infringement sites, and patent, UM, d esign, and 
trademark right holders may claim higher damages.343 Additionally, in response to the increasing 
complexity of disputes in the age of AI and IoT technologies, as of April 2022 courts hearing patent 
and UM infringement cases may solicit third -party opinions upon the motion of a party.344 
Amendments in 2020 to  the Copyright Act also improved evidence collection procedures in copyright 
infringement litigation.345 
3.3.7.14   COVID -19 measures  
3.228.   JPO implemented a variety of measures regarding oral proceedings, deadlines, documentary 
evidence, and in -person proceedings in respon se to the COVID -19 pandemic.346 Some of these 
 
338 National Policy Agency. Viewed at: 
https://www.npa.go.jp/safetylife/seikeikan/R03_seikatsukeizaijihan.pdf . 
339 T. Abe (2020), "How Was Japanese Patent Litigation Reformed?" Managing IP , 9 December.  
340 H. Tada (2021), "Patent Law Development in Japan", Asia Business Law Journal , 7 October. Viewed 
at: https://law.asia/japan -patent -law-development/ .  
341 METI, Industrial Structure Council, Paten t System Subcommittee, Designing an Intellectual Property 
Dispute Settlement System for Effective Rights Protection , February 2019, p. 5. Viewed at: 
https://www.jpo.go.jp/e/resources/shingikai/document/190215_tokkyo_houkoku/english.pdf . 
342 WTO document WT/TPR/S/397/Rev.1, 6  November  2020, para.  3.250.  
343 Patent Act (Act No.  121 of 1959); WTO document IP/N/1/JPN/47, 2  June 2020; Trademark Act (Act 
No. 127 of 13 April 1959); WTO document IP/N/1/JPN/57, 15  July 2021; Trademark Act (Act No.  127 of 
13 April 1959); and WTO document IP/N/1/JPN/60, 6  December  2021.  
344 Patent Act (Act No.  121 of 1959); and WTO document IP/N/1/JPN/62, 16  June 2022.  
345 ACA, Amendment to the Copyright Act Approved by the Ordinary Session of the Diet in 2020 . Viewed 
at: https://www.bunka.go.jp/english/policy/copyright/amendments_2020/ .  
346 JPO, Comparative Table  of COVID -19 Countermeasures in Trial and Appeal Taken by Japan, China 
and Korea . Viewed at: https://www.jpo.go.jp/e/system/trial_appeal/covid19_jck.html .  
01002003004005006007008009001,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of IP infringement cases
Number of persons arrested for IP infringementChart 3.8   IP cases handled by courts and individuals arrested for IP infringement , 2009 -21
Source:  National Policy Agency (in Japanese).  Viewed at:  
http://www.npa.go.jp/bureau/safetylife/keizai/niseburanndohinkaizokubannnokonnzetu.pdf.
.(Number)WT/TPR/S/ 438 • Japan  
 
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 procedural flexibilities have been formalized via amendments to the Patent Act, Utility Model Act, 
Design Act, and Trademark Act. Interested parties have new options to attend oral hearings relating 
to rights vi a video conference. Additionally, exemptions from surcharges will be available for right 
holders who miss fee deadlines during predetermined periods due to the COVID -19 pandemic, a 
natural disaster, or other similar reason.347 
3.229.   Measures were also taken to st reamline communications and fee payments. JPO may now 
send notifications of decisions on international trademark or design applications electronically via 
the International Bureau of WIPO, rather than via the postal service. Amendments to the Act on 
Specia l Provisions of Procedures, etc. Concerning Industrial Property Rights now permit advance 
payment of patent and other fees via bank transfer, credit card, and other payment methods and 
abolished advance payment by patent revenue stamps.  
3.230.   JPO has also sought to streamline its procedures. It reviewed approximately 800 application 
procedures with seal affixation requirements and eliminated the requirement for all but 33, which 
were considered susceptible to forgery. JPO also launched a digitiz ation plan in 2021, which aims to 
allow all procedures to be undertaken online by March 2024.348
  
 
347 JPO, JPO Status Report 2022 , p. 116. Viewed at: 
https://www.jpo.go.jp/e/resou rces/report/statusreport/2022/document/index/all.pdf . 
348 JPO, JPO Status Report 2022 , pp. 117 -18, 124 -26. Viewed at: 
https://www.jpo.go.jp/e/resources/report/statusreport/2022/document/index/all.pdf .  WT/TPR/S/ 438 • Japan  
 
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 4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Agriculture  
4.1.  In 2020 (latest year for which data were available), agriculture, forestry, and fish ing contributed 
around 1.0% to GDP, and 3.2% to total employment. In terms of output, livestock, vegetables, and 
rice remain the most important items.  
4.2.  Japan has a deficit in trade in agricultural goods, with imports of USD  74.8 billion and exports 
of USD  9.2 billion in 2021. In the same year, the main imported agricultural products included maize 
(corn) (HS 1005); meat of swine, fresh, chilled or frozen (HS 0203); and prepared or preserved 
meat, meat offal or blood, other than of sausages (HS 1602), while t he main agricultural exports 
were food preparations n.e.s. (HS 2106); ethyl alcohol, undenatured, of an alcoholic strength by 
volume of less than 805 volume; spirits, liqueurs and other spirituous beverages (HS 2208); and 
sauces and preparations therefore;  mixed condiments and seasonings (HS 2103).  
4.1.1.1   Agricultural policy  
4.3.  The main policy developments during the review period included revision to the Food, 
Agriculture and Rural Basic Plan in 2020; the adoption of the Strategy to Realize Export Expansion 
of Agric ultural, Forestry and Fishery and Food Products in 2020, and its revision in 2022; and the 
entry into force of the Act on Facilitating the Export of Agricultural, Forestry and Fishery Products 
and Food in 2020 and its revision in 2022.  
4.4.  The Food, Agricultur e and Rural Areas Basic Plan sets out Japan's agricultural policy in 
accordance with the Basic Law on Food, Agriculture and Rural Areas. The current Plan, adopted in 
March 2020, stipulates the objectives of promoting industrial and regional policies to inc rease 
self-sufficiency and establish food security. The Plan sets self -sufficiency targets for FY2030 of 45% 
on a calorie basis and 75% on a production value basis, as well as of 34% for feed, and a food 
domestic production ratio of 53% on a calorie basis and 79% on a production value basis in FY2030.1 
In FY2021, self -sufficiency on a calorie basis was 38%.2 The Plan also sets an export target of 
JPY 5 trillion by 2030. Agricultural policies are reviewed annually in the Annual Report/White Papers 
on Food,  Agriculture and Rural Areas in Japan, issued by the Ministry of Agriculture, Forestry and 
Fisheries (MAFF); the latest Report was issued in May 2022.3 
4.5.  On 1  April 2020, the Act on Facilitating the Export of Agricultural, Forestry, and Fishery 
Products and Food  entered into force .4 The Act stipulates that the Basic Policy on Facilitating the 
Export of Agricultural, Forestry, and Fishery Products and Food must be set out.5 The authorities 
state that the Basic Policy provides fundamental policy directions to promote exports of agricultural, 
forestry, and fishery products and food. On 15  December  2020, the Strategy to Realize Export 
Expansion of Agricultural, Forestry, and Fi shery Products and Food was adopted; it was revised in 
December 2021 and June 2022 . The authorities indicate that the Strategy was decided based on the 
 
1 The food domestic production ratio accounts for the share of domestically produced food in the 
domestic food supp ly. The ratio excludes feed.  
2 Self-sufficiency data on a product -by-product basis may be viewed at: 
https://www.maff.go.jp/j/zyukyu/fbs/index.html .  
3 MAFF. Viewed at: http://www.maff.go.jp/j/wpaper/index.html . 
4 E-GOV. Viewed at: https://elaws.e -gov.go.jp/document?lawid=501AC0000000057 . 
5 The Plan is to specify (i)  a basic direction to facilitate the export of agricultural, forestry, and fishery 
products and food; (ii)  basic particulars regarding the deliberations with the governmental organizations of a 
country of destination that are needed t o facilitate the export of agricultural, forestry, and fishery products and 
food; (iii)  basic particulars regarding the issuance of certificates and the development of other such procedures 
that are needed in order to streamline the export of agricultural,  forestry, and fishery products and food that 
conform to conditions of importers; (iv)  basic particulars regarding support for businesses that are working to 
export agricultural, forestry, and fishery products and food; and (v)  the particulars of measures that are 
needed in order to facilitate the export of agricultural, forestry, and fishery products and food, beyond what is 
provided in the preceding items.  WT/TPR/S/ 438 • Japan  
 
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 Act; the Strategy sets the directions of specific measures. Under the latest Strategy, the Government 
adopted an additional product, which is treated as the Priority Export Product.6 
4.6.  The revision of the Act, promulgated in May 2022, has provisions regarding certain financial 
support to authorized export -promotion organizations. According to the authorities,  budgetary 
programmes based on the Strategy are targeted for export promotion and advisory services.  
4.7.  The Policy Package for Enhancing the Competitiveness of Japan's Agriculture, issued in 
November 2016, has remained unchanged.  
4.8.  The Food Industry Strategy, a dopted in April 2018, has remained unchanged.  
4.1.1.2   Institutional and legal framework  
4.9.  The main general law governing the agricultural sector is the Basic Law on Food, Agriculture 
and Rural Areas (last amended in 2018). The MAFF is responsible for agricultural po licy. There were 
no changes to its responsibilities over the review period.  
4.10.   The Act on the Support for Strengthening Agricultural Competitiveness, which entered into 
force in 2017, has remained unchanged. The Agricultural Management Framework Reinforcement  
Act and the Urban Farmland Lease Facilitation Act remain unchanged.  
4.1.1.3   Trade policies and border measures  
4.11.   The simple average tariff on agricultural products (WTO definition) increased slightly to 18.0% 
in FY2022 from 17.9% in FY2019, due to changes in the un it prices leading to increases in ad valorem  
equivalents (AVEs) of non -ad valorem  tariffs. The simple average MFN tariff on agricultural products 
(18.0%) is higher than that on non -agricultural products (3.4%). The maximum tariff (AVE, 
out-of-quota) is 428 .8% on certain beans (HS 0713.39.227). Almost 20% (19.9%) of agricultural 
tariff lines are non -ad valorem . 
4.12.   During FY2019, FY2020, and FY2021, Japan applied either the volume - or price -based 
agricultural special safeguards (SSGs) several times to out -of-quota imports of a variety of products 
(Table  A4.1).  
4.13.   The authorities indicate that no measures concerning agriculture, forestry, and fisheries in 
response to the signing/entering into force of regional trade agreements were introduced during the 
review period . 
4.14.   According to its most recent notification on imports under tariff quotas (for FY2020/21) to the 
WTO Committee on Agriculture, Japan applies 20 tariff quotas (TQs) covering 112 tariff lines at the 
HS six -digit level. Fill rates varied considerably from on e quota to another, ranging from 6.4% to 
100% (Table  A4.2). The authorities indicate that low fill rates for some TQ products were mainly 
because domestic demand for some products under quota has not been increasing (e.g. skimmed 
milk powder; dried legumin ous vegetables and ground -nuts; Konnyaku tubers; and silk -worm 
cocoons and raw silk), partly reflecting situations arising from the outbreak of the COVID -19 
pandemic . The main reason for the low fill rate for barley and its processed products is that the 
quantity of barley for feed imported under the Economic Partnership Agreements is not included in 
the amount of "in -tariff quota" imports. TQs are also applied for various other products (Table  A4.3).  
4.15.   The method of administering TQs has remained unchanged s ince the previous Review.  
4.16.   Since the previous Review, there have been no changes in the simultaneous buy and sell 
(SBS) system, under which an importer and a domestic user make a joint bid to the MAFF, submitting 
the government purchase price from the impor ter and the government sale price on the domestic 
Japanese market (Table  A4.4).  
 
6 MAFF. Viewed at: https://www.maf f.go.jp/j/shokusan/export/progress . WT/TPR/S/ 438 • Japan  
 
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 4.17.   During the review period, Japan notified the WTO Committee on Agriculture that it did not 
use any export subsidies on agricultural products between FY2019 and FY2022.  
4.18.   Export in surance from Nippon Export and Investment Insurance is available for agricultural 
products in the same way as for exports of other goods.  
4.19.   Japan's food assistance programme has remained unchanged since its previous Review. 
During the review period, Japan no tified volumes exported for 2017 to 2020 (Table  A4.5).  
4.1.1.4   Domestic support  
4.1.1.4.1   General support programmes  
4.20.   During the review period, the Government launched a Strategy for Sustainable Food System, 
MeaDRI (Measures for Achievement of Decarbonization and Resilience with Innovation) in May 2021, 
and the Act on Sustainable Food System, MeaDRI entered into force in July 2022. Under the Act, 
Japan aims to transform its agricultural production system to respond to climate change and 
decreasing biological diversity by redu cing environmental loads including through the reduced use 
of fossil fuels and chemical pesticide/fertilizer as well as through the use of smart technology . Japan 
will also put emphasis on R&D, disseminat e smart agriculture including through the facilitati on of 
new technology introduction and infrastructure development in rural areas, and increase 
capacity -building for farmers and other stakeholders in the food supply chain. The authorities 
consider that, in order to achieve the MeaDRI's key performance ind icators, it is essential to 
introduce promising new technologies, such as an integrated pest management, soil data 
management, and resource recovery from waste.  
4.21.   The Government also implemented a comprehensive grant for strong agriculture during the 
same pe riod with a view to providing support for constructing fundamental facilities in agricultural 
rural areas and distribution centres of agricultural products, which the authorities consider necessary 
for joint delivery in production areas and consumption are as as well as for pilot programmes in 
pioneering projects. The budget for the grant was JPY  34.5 billion in FY2020 and JPY  16.2 billion in 
FY2021. The grant is first allocated to prefectural governments from the MAFF, and then prefectural 
governments provi de the allocated grants to each recipient group in the prefecture concerned. The 
general eligibility requirements of this project include that a recipient group must be composed of 
five farmers or more; expected performance indicators must meet the target levels specified in the 
operational procedure of this project; and the total area of farmland of a recipient group must be 
larger than the size of area specified in the operational procedure of this project.  
4.22.   Since Japan's previous Review, the Agricultural Insurance Act, 2018, the Income Insurance 
Program and its insurance premium rate (1.08%), the Agricultural Mutual Aid System (AMAS), and 
the Vegetable Price Stabilization Program have remained unchanged.  
4.23.   The three direct payments programmes that fall under  the Act on Multi -Functionality of 
Agriculture remain unchanged. The total area of 82,000 ha was estimated to receive direct payments 
for environmentally friendly agriculture of JPY 2.5 billion in FY2021. The direct payments for farmers 
in hilly and mounta inous areas, under which payment rates depend on the slope of the land and 
production factors, ranged from JPY  21,000 per 0.1  ha for paddy fields in high -inclination areas to 
JPY 300 per 0.1  ha for pasture on a mild slope; the scheme covered 653,000  ha, am ounting to a 
total of JPY  26.1 billion in FY2021. The direct payments for activities to enhance multi -functionality, 
under which unit prices depend on the type of land use and activity, to conserve or improve local 
resources, including mowing of farmland s lopes or simple repairing of channels, covered 2.31  million 
ha and 26,258 organizations, amounting to JPY  48.7 billion in FY2021.  
4.24.   Under the Emergency Measures to Develop New Sales Channels of Agricultural, Forestry, and 
Fishery Products, the Government pro vides financial support to compensate for part of the expenses 
for those who develop new sales channels for certain products such as e -commerce and for those 
who supply certain products for school lunches and children's cafeterias in response to excess 
inventories of agricultural, forestry, and fishery products caused by the substantial decrease in 
demand, including reduced inbound tourism consumption due to the COVID -19 pandemic. The WT/TPR/S/ 438 • Japan  
 
- 103 - 
 budget for this support amounted to JPY  19 billion in FY2021.7 During the review period, the 
Government held two selection processes of farmers and enterprises that are accorded the support; 
they started on 26  January  2022 and 16  May 2022, respectively.8 
4.25.   A Production Infrastructure Power -up Project, introduced in FY 2015 with a view to providing 
infrastructural development service to an agricultural rural area, aims to support farmers that work 
on initiatives based on the region's agricultural strategy. The budget amount was JPY  34 billion in 
FY2020 and JPY  31 billion  in FY2021. The subsidy of this project is first allocated to prefectural 
governments from the MAFF, and then prefectural governments provide the allocated subsidies to 
each recipient group in the prefecture concerned. The acceptance requirements for appli cants is to 
participate in programmes in a regional development plan prepared by the producing region and 
approved by the prefecture's governor.  
4.26.   In FY2020, a wheat, barley, and soybean profitability and productivity improvement project 
was introduced with a view to improving productivity of wheat, barley, and soybean farming. This 
project aims at facilitating information -sharing with and the provision of research outcomes to 
producers by (i)  introducing farming technologies and aggregating farmlands for , inter alia , the 
improvement of labour productivity; (ii)  introducing machines necessary for production; and 
(iii) establishing a stable supply system including through proper utilization of storage facilities. The 
budget for this purpose was JPY  6 billion in  FY2020 and JPY  3.35 billion in FY2021. The subsidy of 
this project is first allocated to prefectural governments from the MAFF, and then prefectural 
governments provide the allocated subsidies to each recipient group of farmers in the prefecture 
concerned . 
4.27.   According to the authorities, in 2022, as fertilizer prices soared, the Government supported 
farmers that introduced measures to reduce 20% of the use of chemical fertilizers  with reference to 
a similar measure implemented in 2008.  
4.28.   There exist various fu nds concerning agriculture, forestry, and fisheries (Table 4.1). In 
addition, t he MAFF has under its responsibility a public -private investment fund (Agriculture, forestry 
and fisheries Fund corporation for Innovation, Value -chain, and Expansion Japan (A -FIVE)).9  
Table 4.1 Other funds concerning agriculture, forestry, and fisheries  
Name of fund  Name of entities the fund belongs to  
Food Distribution Rationalization Measures Debt 
Guarantee Project Fund  Organization for Food -marketing Structure 
Improvement  
Fund for Food Distribution Streamlining Emergency 
Measures  Organization for Food -marketing Structure 
Improvement  
Early Establishment Fund for Regional Renewable 
Energy Models  Organization for Food-marketing Structure 
Improvement  
Medium -sized Restaurant Business Finance 
Facilitation Fund  Japan Food Service Association  
Vegetable Production and Shipment Stabilization 
Fund Agriculture and Livestock Industries Corporation  
Supplemental Compensatio n Provident Fund  Mixed Feed Supply Stabilization Organization  
Livestock Farming Management Maintenance and 
Stabilization Special Measures Fund  National Livestock Management Stabilization Fund 
Association  
Horse Producing Region Revitalization Fund  Nationa l Association of Racing  
Fund for Measures against Soaring Fuel Prices for 
Greenhouse Horticulture  Japan Greenhouse Horticulture Association  
Igusa  and Tatami Omote  Farmer Management 
Income Stabilization Fund  Kumamoto Prefecture Igusa  Industry Production and 
Sales Promotion Association  
Production Area Power -up Project Fund  Japan Special Agricultural Products Association  
Livestock and Dairy Profitability Comprehensive 
Measures Fund  Japan Livestock Industry Association  
Egg Producer Ma nagement Stabilization Fund  Japan Poultry Association  
Management Support Fund for Authorized Farmers  National Chamber of Agriculture  
Youth Farming Grant Project Fund  National Chamber of Agriculture  
 
7 Ministry of Finance (MOF). Viewed at: 
https://www.mof.go.jp/policy/budget/budger_workflow/budget/fy2021/fy2021.html . 
8 MAFF.  Viewed at: https://www.maff.go.jp/j/kanbo/hanrokaitaku/kaitaku.html . 
9 A-FIVE. Viewed at: http://www.a -five-j.co.jp/.  WT/TPR/S/ 438 • Japan  
 
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 Name of fund  Name of entities the fund belongs to  
Lending Fund to Support Farmers  National Association of Agricultural Land Holding 
Rationalization  
Business Development Support Fund for Farmers  Agriculture, Forestry and Fisheries Long -Term 
Finance Association  
Agricultural Management Income Insurance Rider 
Compensation Fund  National Federation of Agricultural Kyosai  
Associations  
Sugar Cane Production Stabilization Fund  Okinawa Prefectural Sugar Industry Development 
Association, etc.  
Innovative Research and Development Promotion 
Fund National Agriculture and Food Research Organization  
Special Fund for Strengthening the Structure of the 
Timber Industry  Japan Federation of Wood Industry Cooperatives  
Go-for-it! Regional Forestry Support Fund  Japan Federation of Wood Industry Cooperatives  
Lending Business Fund  Overseas Fishery Cooperation Foundation of Japan  
Control Project Fund  Sea and Beach Environment Beautification and Oil 
Pollution Control Organization  
Loss and Purchase Fund Lending Project Fund  Marine Products Stable Supply Promotion 
Organization (Fish Fund)  
Domestic Ma rine Product Supply and Demand 
Fluctuation Adjustment Project Fund  Marine Products Stable Supply Promotion 
Organization (Fish Fund)  
International Fisheries Restructuring Project Fund  Japan Fisheries Association  
Subsidy Fund for Lease Fees  Japan Fisherie s Association  
Fishery Management Stabilization Fund  National Federation of Fisheries Kyosai  Associations  
Fishery Industry Strengthening Comprehensive 
Measures Fund  Fisheries and Fishing Village Revitalization Promotion 
Organization  
Fund for Comprehensive Countermeasures against 
Harmful Species in Fisheries  Fisheries and Fishing Village Revitalization Promotion 
Organization  
Project Fund for Construction of Fishery 
Management Safety Net  Fisheries Management Stabilization Promotion 
Association  
Foreign ( the Republic of Korea, China, etc.) Fishing 
Vessel Operation Countermeasures Fund  Fisheries Promotion Foundation in response to 
Japan -the Republic of Korea/Japan -China 
Agreements  
Okinawa Fisheries Fund  Okinawa Prefecture Fisheries Promotion Fund  
Fisheries Competitiveness Enhancement Fund  Fisheries and Fishing Village Revitalization Promotion 
Organization  
Resource Management and Fisheries Innovation 
Promotion Fund  Fisheries and Fishing Village Revitalization Promotion 
Organization  
Producer Reserve Fund for Raw Milk for Processing  Hokuren  Federation of Agricultural Cooperatives, etc.  
Livestock Advancement Support Leasing Fund  Livestock Industry Environment Improvement 
Organization  
Funds for Acquisition of Machines  for Lending  Japan Ham and Sausage Processor Cooperative 
Association  
Producer Reserve Fund  Hokkaido Livestock Price Stabilization Fund 
Association, etc.  
Livestock Farming Management Emergency Support 
Fund Association of Livestock Producers Organization  
Adjustment Fund  Agriculture and Livestock Industries Corporation  
Livestock Industry Promotion Fund  Agriculture and Livestock Industries Corporation  
Agriculture, Forestry and Fisheries Credit Fund 
Subsidy in Response to Soaring Livestock Feed Costs  Agriculture, Forestry and Fisheries Credit 
Foundations  
Agricultural Credit Insurance Business Grant  Agriculture, Forestry and Fisheries Credit 
Foundations  
Subsidies for Agricultural Management Financial 
Support Measures  Kumamoto Agricultural Credit Fund Association, etc.  
Forestry Credit Guarantee Project Grant  Agriculture, Forestry and Fisheries Credit 
Foundations  
Fishery Emergency Guarantee Measure Proj ect Grant  Agriculture, Forestry and Fisheries Credit 
Foundations  
Fishery Emergency Guarantee Project  Japan Fisheries Credit Fund Association and other 
four Fisheries Credit Fund Associations  
Source:  MAFF. Viewed at: https://www.maff.go.jp/j/budget/review/r3/kikin/f/03kikin_f.html . WT/TPR/S/ 438 • Japan  
 
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 4.1.1.4.2   Support level  
4.1.1.4.2.1   WTO notifications  
4.29.   The most recent notification from Japan to the WTO Committee on Agriculture concerning 
domestic support covers FY2020.10 According to the notification, 78% of all support for agriculture 
(support notified under the Green Box, Blue Box, and Amber Box (including de minimis )) is under 
the Green Box, and about 22% under the Amber Box (including de minimis ). 
4.1.1.4.3   OECD  indicators  
4.30.   In OECD publications regarding reviews of agricultural policies in Japan, other OECD countries, 
and some other economies, the value of transfers to agricultural producers is measured using the 
Producer Support Estimate (PSE) and associated indi cators. The methodology for calculating these 
indicators is different from that used to calculate the Aggregate Measure of Support, and the two 
sets of data are neither compatible nor comparable.  
4.31.   According to the OECD, Japan gradually reduced its support t o agriculture during the past 
10 years; however, the level of support plateaued more recently.11 In terms of a share of gross farm 
receipts, the PSE remains more than twice the OECD average. The total support estimate to 
agriculture was about 0.9% of Japan 's GDP in 2019 -21. Due mainly to border measures, market 
price support remains the main element of producer support for rice, pork, and milk. As a result, 
average producer prices remain higher than world reference prices, by around 60%.  
4.1.1.4.4   Specific products  
4.1.1.4.4.1   Rice 
4.32.   The MAFF continues to provide direct payments to farmers who produce crops other than 
table rice in the paddy field (the Direct Payments for Rice Paddy Utilization), to optimize the use of 
paddy fields, against the background of diminishing domestic de mand for rice. According to the 
authorities, this scheme aims to maintain the favourable environment of paddy fields and prevent 
floods or soil erosion, cultivate water resources, and preserve the natural environment through 
effective use of paddy fields. The Payments are classified into (i)  direct payments to assist the 
production of strategic crops (other than table rice) ; (ii) grants for production areas ; and (iii)  direct 
payments for promoting high profitability in paddy farming. In FY 2021, with a view  to more 
positively tackling the continued decline in demand for staple rice, the fourth programme was built 
into the Payments. The new programme, in addition to prefectural governments' own financial 
supporting schemes, enables the Government to pay farme rs who produce certain products in the 
paddy field.12 The Payments are made when producers meet at least three of specific requirements 
including those for environmental protection such as direct sowing seeding and efficient fertilization, 
in order to promote cultivation of paddy field. Under the Payments, t he Government provides grants 
to Prefectural Agricultural Revitalization Councils, which are composed of farmers' organizations and 
other agricultural stakeholders, based on their grant applications and performance reports that 
summarize the farmers' pract ices in the region. The grants are paid to the Prefectural Councils and 
then distributed to the farmers. The budgets for these programmes were JPY  332.0  billion in FY2020 
and JPY  370 billion in FY2021.  
4.33.   The MAFF continues to implement the Rice Overseas Mark et Expansion Project.  
 
10 WTO document G/AG/N /JPN/277, 12  May 2022.  
11 OECD (2022), Agricultural Policy Monitoring and Evaluation 2022 . Viewed at: https://www.oecd -
ilibrary.org/agriculture -and-food/agricultur al-policy -monitoring -and-evaluation -2022_4be691e1 -
en;jsessionid=g_WT3NdSMB2j8e3ggeNTJ2cJ9c -wG06Df14nihWE.ip -10-240-5-47. 
12 Such products are rice targeted for new market development, processed rice, wheat, barley, and 
soybeans. MAFF. Viewed at: https://www.maff.go.jp/j/syouan/keikaku/soukatu/attach/pdf/220816 -6.pdf; and 
https://www.maff.go.jp/j/s youan/keikaku/soukatu/220816.html . WT/TPR/S/ 438 • Japan  
 
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 4.1.1.4.4.2   Other cereals, sugar beet, starch potatoes, buckwheat, and rapeseed  
4.34.   There has been no change to the Act on Payment of Grants to Farmers for Purpose of 
Stabilization of Farming Management (Act No.  88, 2006).13 Under the Act, core farme rs producing 
wheat, barley, soybeans, sugar beet, starch potatoes, buckwheat, and rapeseed are eligible for 
payments with a view to narrowing the gap between the prices of domestic products and imports 
(Table  A4.6).14 
4.35.   There has been no change to the Act on  Price Adjustment of Sugar and Starch (Act No.  109, 
1965). The latest amendment entered into force in December 2018.  
4.36.   The Subsidy Programme for Structural Transition of Field Crops, introduced in FY2017, ended 
in FY2020. The Programme aimed to support farme rs in large -scale non -rice-paddy areas facing 
challenges in addressing labour shortages and risk of damage caused by plant pests and diseases. 
The budget for the subsidy in FY2020 was JPY  3 billion. The subsidy was first allocated by the MAFF 
to prefectura l governments, and then prefectural governments provided the allocated subsidies to 
each recipient farmer group.  
4.1.1.4.4.3   Fruits and vegetables  
4.37.   The latest revision to the Basic Policy on the Promotion of Fruit -Growing Industry of 2015 was 
issued in April 2020.15 The previous Policy focused on curbing fruit production to address oversupply. 
The Government revised the Policy, against the background of a recent decline in the fruit supply, 
with the aim of strengthening the fundamentals of fruit production and recoverin g the capacity of 
supply. Under the revised Policy, budget allocated to this assistance was JPY  5.7 billion in FY2020 
and JPY  5.1 billion in FY2021.  
4.38.   Groups of farmers  specified in a Fruits Production Structural Reform Plan for each production 
area, based o n the Plan for Promotion of Fruit -growing Industry of each prefecture, are eligible for 
assistance for strengthening the fundamentals of fruit production through the promotion of 
replanting and land improvement of orchards.  
4.39.   Since the previous Review, there  has been no change in the price control support scheme for 
specific vegetables under contract.16 Price support payments are made based on the quantity of 
production of specific vegetables17 under contract, calculated as the difference between 90% of the 
average of wholesale market price of the past six years and the average of wholesale market prices 
for each vegetable season.18 
4.1.1.4.4.4   Livestock and livestock products  
4.40.   The Act on Dairy and Beef Cattle Production Promotion has remained unchanged since the 
previous Review. Under the Act, the Minister of Agriculture, Forestry and Fisheries is to develop a 
plan to facilitate the modernization of dairy and beef cattle production;  the current plan was adopted 
in March 2020. Administered prices continue to apply to calves (Table  A4.7).  
4.41.   Support for domestic pork producers through the Hog Growers Business Stabilization Measure 
(also known as Pig Marukin), which covers 90% of the cost gap (i.e. gap between the standard cost 
of production and the standard sales price), has remained unchanged. There was no payment of Pig 
Marukin in FY2020 and FY2021 because the standard sales price was not lower than the standard 
cost of production.  
 
13 Alternatively , the Act on Farming Income Stabilization.  
14 MAFF. Viewed at: https://www.maff.go.jp/j/supply/hozyo/nousan/220428_160 -1.html  and 
https://www.maff.go.jp/j/seisaku_tokatu/antei/r4_narashi_minaoshi.html . 
15 MAFF. Viewed at: https://www.maff.go.jp/j/seisan/ryutu/fruits/attach/pdf/index -96.pdf . 
16 ALIC. Viewed at: https://www.alic.go.jp/y -kofu/yagyomu02_000002.html . 
17 Currently, they are cabbage, cucumber, taro, radish, tomato, eggplant, carrot, green onion, Chinese 
cabbage, peppers, and lettuce.  
18 If the average of wholesale market prices is lower than the designa ted minimum base price, the latter 
will apply.  WT/TPR/S/ 438 • Japan  
 
- 107 - 
 4.42.   There  has been no change to the Price Stabilization Fund for Eggs, through which payments 
are made to egg producers under contract, calculated as 90% of the difference between the baseline 
price (JPY  181/kg in FY2022) and the average trading price, multiplied b y the quantity of eggs sold. 
The budgetary cost for this measure was JPY  5.17 billion for FY2022.  
4.43.   There has been no change to the Feed Price Stabilization Programme, which operates to help 
to ease the influence of sudden surges in compound feed prices upon  farmers.19 
4.44.   Under the annual Feed Supply and Demand Plan that aims to stabilize feed supply, demand, 
and prices, the MAFF continues to purchase and sell imported feed grains (barley and wheat) under 
the Plan. There has been no change to the Plan. The Plan for 2021 was to purchase and sell 
300,000  tonnes of feed barley and 400,000 tonnes of feed wheat. The private sector freely imports 
these products, regardless of the Plan. Nonetheless, such importers must go through special import 
procedures; they must pay  customs duties plus special import fees to a regional agricultural 
administration bureau. Once the bureau issues the receipt of such a payment, importers must submit 
the receipt to the customs as a part of import declaration.20 
4.1.1.4.4.5   Dairy  
4.45.   Under the support sys tem for milk that was modified in 2018, the MAFF  continues to set  the 
upper limit of the amount of raw milk for compensation payments; every producer of raw milk for 
processed products is eligible for this payment .21 With a view to ensuring the stable cont inuation of 
raw milk collection in disadvantaged areas, designated milk collection operators are eligible for 
adjustment payments. The compensation payment uniform unit price was JPY  8.26/kg of milk in 
FY2022 ( same in FY2021). The adjustment payment for ra w milk collection in the same year was 
JPY 2.59/kg of milk ( same in FY2021). Under this scheme, JPY  35.8 billion was paid to dairy farmers 
in FY2020. Additionally, to cushion producers against sudden price fluctuations, producers and the 
Government contrib ute to the farm business stabilization fund (at a ratio of 1:3). The fund 
compensates producers of milk for processing whenever prices fall below the average for the 
previous three years.  
4.46.   Butter is imported by the ALIC and by private businesses. Private bu sinesses can import butter 
subject to in -quota tariff rates, or by paying out -of-quota tariff rates.  
4.1.1.4.4.6   Tobacco  
4.47.   Since the previous Review, the Tobacco Business Act has undergone a few changes 
corresponding to the amendment of the Civil Code as of 1 April 2022 .  
4.1.2   Fisheries  
4.1.2.1   Policy and institutional issues  
4.48.   Japan's latest overall strategy is defined by the revised Basic Plan for Fisheries, which was 
issued on 25  March  2022.22 The aim of the strategy remains to enhance fisheries' sustainable 
resource management , make fisheries a growing industry through increased productivity, and 
maintain fisheries communities and increase their revenues. The revised plan also aims to achieve 
a set of self -sufficiency targets by 2032.23 Actions and programmes to that effect include promoting 
international cooperation regarding resource management; expansion of domestic production of fish 
and fish products that are highly dependent on imports  (e.g. salmon) and consumption of 
domestically produced fish and fish products; helping potent ial exporters through export -promotion 
initiatives for selected products; improving the environment for the acceptance of foreign workers 
in the sector; facilitating the use of eco -labelling; and utilizing measures to discourage illegal, 
unreported, and un regulated fishing.  
 
19 WTO document WT/TPR/S/397/Rev.1, 6  November  2020, para.  4.56. 
20 MAFF. Viewed at: https://www.maff.go.jp/j/seisaku_tokatu/boeki/kome_yunyuu.html#noufukin , and 
https://www.maff.go.jp/kanto/syokuryou/syouhi/todokede/yunyu2.html .  
21 MAFF. Viewed at: https://www.maff.go.jp/j/chikusan/kikaku/tikusan_sogo/attach/pdf/kakaku -2.pdf. 
22 MAFF. Viewed at: https://www.jfa.maff.go.jp/j/policy/kihon_keikaku/attach/pdf/index -9.pdf. 
23 These include 94% for fisheries for food, 76% for the total fisheries, a nd 72% for seaweed.  WT/TPR/S/ 438 • Japan  
 
- 108 - 
 4.49.   Overall responsibility for national fisheries policies lies with the Fisheries Agency in the MAFF, 
while prefectural governments are responsible for local issues, such as management of local fisheries 
resources.24 
4.1.2.2   Regulatory developments  
4.50.   The main laws concerning the fisheries sector include the Fishery Act of 1949 (last amended 
in 2022); the Basic Act on Fisheries of 2001 (last amended in 2020); the Fisheries Cooperative 
Association Act (last amended in 2022); the Act to Ensure Sustainabl e Aquaculture Production of 
1999 (last amended in 2018); the Act on the Exercise, etc. of Sovereign Rights regarding Fishery, 
etc. in the Exclusive Economic Zone of 1996 (last amended in 2018); the Act on the Protection of 
Fishery Resources of 1951 (last a mended in 2018); and the 2014 Inland Water Fishery Promotion 
Act. Under the Fishery Act, national and prefectural governments have responsibility for appropriate 
conservation and management of fisheries resources. In principle, fisheries resources shall be  
managed with a goal to achieve the Maximum Sustainable Yield through Total Allowable Catch 
management. Fishers must engage in fisheries management in order to be eligible for some 
government support programmes for the establishment of environmentally and economically 
sustainable fisheries.  
4.51.   According to the authorities, Japan is in the ratification process for the WTO  Agreement on 
Fisheries Subsidies.  
4.1.2.3   International agreements  
4.52.   Japan has bilateral agreements with Australia, Canada, China, France, Kiribati, th e Republic 
of Korea, Marshall Islands, Morocco, the Russian  Federation, Solomon  Islands, Senegal, 
Chinese  Taipei, and Tuvalu. In addition, the Trade Agreement between Japan and the United  States 
entered into force on 1  January  2020, and the Japan -United  Kingdom Comprehensive Economic 
Partnership Agreement entered into force on 1  January  2021.  
4.53.   Under the agreements with China and the Republic of Korea, the parties have not yet reached 
agreement about operational conditions for mutual fishing access.25 
4.54.   Japan remains a member of the following Regional Fisheries Management Organizations: 
Indian Ocean Tuna Commission; Western and Central Pacific Fisheries Commission; Inter -American 
Tropical Tuna Commission; International Commission for the Conservation of A tlantic Tuna; 
Commission for the Conservation of Southern Bluefin Tuna; South East Atlantic Fishery Organization; 
Convention on the Conservation and Management of Pollock Resources in the Central Bering Sea; 
North Pacific Anadromous Fish Commission; Commis sion for the Conservation of Antarctic Marine 
Living Resources; Northwest Atlantic Fisheries Organization; South Indian Ocean Fisheries 
Agreement; North Pacific Fisheries Commission; and Commission for the Conservation of Antarctic 
Marine Living Resources.  Japan withdrew from the General Fisheries Commission for the 
Mediterranean on 31  October  2020.26 
4.55.   Japan is also a member of the following fisheries and fisheries -related agreements: 
Asia-Pacific Fishery Commission, Fishery Committee for the Eastern Central  Atlantic (CECAF), 
Southeast Asian Fisheries Development Centre (SEAFDEC), and North Pacific Marine Science 
Organization.  
4.56.   Japan is a party to the Agreement on Port State Measures to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing.  
 
24 Regarding important policy decision -making, the Fisheries Policy Council (at the national level), the 
Regional Fisheries Coordination Committees (at the regional level), and the Sea Area Coordination Committees 
(at the prefectural le vel) are consulted for their opinions, depending on the nature of the issue. Other relevant 
organizations include the Fisheries Cooperative Associations and the Fisheries Research Agency.  
25 MAFF, White Paper on Fisheries (summary) . Viewed at: 
https://www.jfa.maff.go.jp/j/kikaku/wpaper/R2/attach/pdf/210604 -15.pdf . 
26 MOFA, Diplomatic Bluebook 2021 , Chapter 3. Viewed at: 
https://www.mofa.go.jp/policy/other/bluebook/2021/en_html/chapter3/c030403.html . WT/TPR/S/ 438 • Japan  
 
- 109 - 
 4.57.   On 4 June 2021, Japan adopted a Protocol to Amend the International Convention for the 
Conservation of Atlantic Tuna.27 
4.1.2.4   Border and domestic support measures  
4.58.   During the review period, tariff protection to the fisheries sector remained largely unchanged. 
In FY2022, the average MFN tariff rate on the 546 lines (528 in FY2019) (at HS nine -digit level) 
covering fish and fish products was 6.2% (6.1% in FY2019) and the range was between zero and 
15% (same in FY2019). Of these lines, 4.6% (4.7% in FY2019) are duty -free, and 0.2% (same in 
FY2019) are subject to non -ad valorem  rates (Section  3.1.4). Seventy tariff lines are fully unbound, 
and 19 partially bound. This represents around 16.3% of tariff lines for fish and fishery products 
under the WTO definition. Japan applies import licensing procedures and quotas on certain species 
(Section  3.1.6).  
4.59.   The structure of Japan's subsidy schemes for fisheries has remained largely unchanged. 
Table  A4.8 contains the support programmes for fisheries as notified by Japan to WTO i n June 2021.  
4.2  Mining and Energy  
4.2.1   Mining  
4.60.   Mining accounts for a very small share of Japan's economy: 0.1% of GDP in 2020 and 0.03% 
of employment in 2020. There were 2,161 operators and 2,691 mining sites in Japan at the end of 
2020; both figures are 1.2% lower  compared to the previous year.28 
4.61.   Legislation regarding mining has remained largely unchanged since the previous Review.  
4.62.   In order to secure a stable supply of metal mineral resources, Japan has been conducting 
maritime research on manganese nodule, seafloo r hydrothermal deposits, and cobalt rich crust.29 
4.2.2   Energy  
4.63.   The main policy development during the review period included the adoption, in October 2021, 
of the sixth Strategic Energy Plan (SEP), replacing the 2018 SEP.30 The main objectives of the 2021 
SEP in clude to show the path of energy policy towards the realization of "2050 Carbon Neutral" 
announced in October 2020 and the new greenhouse gas emission reduction targets announced in 
April 2021 (to cut greenhouse gas emissions by 50%). It also aims to secur e a stable supply and 
reduce energy costs on the premise of ensuring safety in order to overcome the challenges faced by 
Japan's energy supply and demand structure while promoting climate change countermeasures, 
confirming the basic principles of Japan's e nergy policy (energy security, economic efficiency, 
environment sustainability, and safety (3E+S)).  
4.64.  The 2021 SEP indicates that the Government will make efforts towards decarbonizing 
innovations through the Green Innovation Fund for the enhancement of comp etitiveness in Japan's 
industries. JPY  2 trillion has been entrusted to the New Energy and Industry Technology 
Development Organization (NEDO) for the use of the Government.31 The Fund targets projects 
relating to energy, transport and manufacture, and hou seholds and offices, and it supports them 
continuously from research and development to implementation stages for up to 10 years. The Fund 
also expects to support small -scale projects that encourage the participation of SMEs and start -ups. 
The 2021 SEP sta tes that, towards 2030, the Government needs to mobilize all policies in order to 
further pursue the major principles of 3E+S, which has been the major premise of energy policy 
 
27 MOFA. Viewed at: https://www.mofa.go.jp/mofaj/p_pd/dpr/page22_003568.html . 
28 Agency for Natural Resources and Energy, Number of Operators and Mining Sites . Viewed at: 
https://www.enecho.meti.go.jp/category/resources_and_fuel/mineral_resource/situation/004/ .  
29 Agency for Natural Resources and Energy, Policy on Mineral Resources . Viewed at: 
https://www.enecho.meti.go.jp/category/resources_and_fuel/mineral_resource/002/ .   
30 Agency for Natural Resources and Energy, Strategic Energy Plan , October 2021 . Viewed at: 
https://www.enecho.meti.go.jp/category/others/basic_plan/pdf/strategic_energy_plan.pdf .   
31 NEDO, Green Innovation Fund . Viewed at: https://www.nedo.go.jp/activities/green -innovation.html ; 
and METI. Viewed at: 
https://www.meti.go.jp/policy/energy_environment/global_warming/gifund/pdf/basicpolicies_211213.pdf . WT/TPR/S/ 438 • Japan  
 
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 (i.e. ensuring a stable and cost -effective energy supply and addressing the iss ue of climate change, 
on the premise of ensuring safety). The Government's support measures and initiatives to achieve 
the goals set in the SEP are being discussed in each sector . 
4.65.  Where carbon dioxide emissions are technically unavoidable, the 2021 SEP sta tes that the 
Government will utilize negative emission technologies including Direct Air Carbon Capture and 
Storage, Bio -Energy with Carbon Capture and Storage, and forest sink measures.  
4.66.   In May 2022, based on the 2021 SEP, the Diet passed an amendment to s everal pieces of 
energy -related legislation (2022 amendment).  The 2022 amendment  to the Act on Rationalizing 
Energy Use (Energy Conservation Act) , which is to be implemented in April 2023, expands the scope 
of "energy" within the meaning of the Act from fo ssil energies to all types of energy.32 This is 
intended to allow the Act and its relevant regulations to address the rational use of all types of 
energy, including renewable and non -fossil. The 2022 amendment to the Act also requires that 
businesses incre ase the proportion of non -fossil energies used in their operations. To this effect, 
certain businesses meeting the scale threshold must submit to the METI a mid - to long -term plan 
regarding their future transition from fossil to non -fossil energies and per iodical reports on the latest 
usage of non -fossil energies.  
4.67.   Moreover, the 2022 amendment clarifies that relevant legislation includes hydrogen and 
ammonia as sources of non -fossil energies. It also stipulates that the Japan Organization for Metals 
and Ener gy Security (JOGMEC)33 can provide private equity infusion and loa n guarantees for private 
projects relating to production and storage of hydrogen and ammonia.34 
4.68.   The Agency for Natural Resources and Energy and its Advisory Committee for Natural 
Resources and Energy in the METI are responsible for energy policy, planning, and legislation, as 
well as regulation of the industry. The Nuclear Regulation Authority in the  Ministry of the 
Environment is responsible for the supervision of nuclear power plants.  
4.69.  According to Japan's latest notification to the Committee on Subsidies and Countervailing 
Measures, during the review period, several schemes provided grants for demon stration project s for 
high-efficiency gas turbine technology ; projects and activities by NEDO; and promot ion of energy 
saving by homes and businesses.35 
4.70.   Under the provisions of the Foreign Exchange and Foreign Trade Act , foreign entities wishing 
to invest in the target companies engaged in energy sectors (including electricity, gas, oil, and heat 
supply) must notify their intention to the competent authorities, including the METI (Section  2.4). 
Permission may be denied o n the grounds of, inter alia, public order.  
4.2.2.1   Hydrocarbons  
4.2.2.1.1   Coal 
4.71.   The JOGMEC continues to contribute to the coal industry in various ways, including conducting 
geological surveys, developing technologies, and providing financial support and information for 
Japanese companies, in order to secure a stable coal supply chain in Japan.36 The JOGMEC also 
provides technical support for Japanese companies, and transfers coal extraction and security 
technologies to coal -producing countries to ease their constrained prod uction capacity.  
4.72.   The 2021 SEP states that while coal, among fossil fuels, emits the largest amount of 
greenhouse gases based on the current technologies and relevant institutional frameworks, it 
remains a significant energy source for its stable supply and  affordability. It explains that the 
Government will commit to decreasing the share of coal in the power generation remix, while relying 
 
32 METI, Outline of the Draft Amendment to  the Energy Conservation Act, etc . Viewed at: 
https://www.meti.go.jp/press/2021/03/20220301002/20220301002.html . 
33 JOGMEC's English title was changed from Japan Oil, Gas and Metals National Cooperation in 
May 2022.  
34 JOGMEC, An Amendment to Expand Operations and Change the Organization Name.  Viewed at:  
https://www.jogmec.go.jp/news/release/news_10_00022.h tml. 
35 WTO document G/SCM/N/372/JPN, 30  June 2021.  
36 JOGMEC, Coal. Viewed at: https://www.jogmec.go.jp/english/coal/index.html . WT/TPR/S/ 438 • Japan  
 
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 on it until Japan's shift to renewable energy sources is completed and to the extent that the reduction 
of coal does no t hinder Japan from securing a steady supply of energy .  
4.73.   To reduce the proportion of coal, the SEP states that the Government intends to implement 
various measures. For example, the Government will aim to encourage more efficient generation of 
coal-fired t hermal power by setting new targets benchmarked to generation efficiencies. With 
respect to the capacity market, starting in the FY2025 auction, the Government will steadily promote 
the fade -out of inefficient coal -fired power by reducing the amounts that inefficient coal -fired power 
generation operations receive from the capacity market. Moreover, the Government intends to 
promote the development of technologies such as Integrated Coal Gasification Combined Cycle and 
Integrated Coal Gasification Fuel Cell Combined Cycle, both of which are next -generation, 
high-efficiency coal -fired power generation technologies.  
4.74.   The State is not involved in coal mines or coal processing facilities ownership. There are no 
domestic support schemes for coal mines or social pro grammes to help the reconversion of areas 
affected by the closure of coal mines.  
4.75.   Japan's regimes of importation and distribution of coal have not changed since its previous 
Review. They are entirely in private hands and are open to foreign capital and owne rship. In practice, 
coal imports often come from mines developed abroad by Japanese companies (with mining rights), 
notably in Australia. To help ensure the coal supply, the Government is promoting the acquisition by 
Japanese companies of coal mines abroad , for example, in Indonesia.  
4.76.   There are no preferential/subsidized tariffs/prices for coal purchase and sale in Japan.  
4.2.2.1.2   Oil and gas  
4.77.   JOGMEC continues to undertake various types of activities to ensure stable supplies of oil and 
natural gas. Such activities in clude geological and geophysical surveys, research, technological 
development and assistance, and financial assistance to Japanese companies.37 During the review 
period, in June 2020, a new regulatory amendment empowered JOGMEC to provide equity infusion 
and loa n guarantees for private overseas projects relating to liquid natural gas.38 The amendment 
also enabled JOGMEC to procure fuel for power generation upon request by the Minister of Economy, 
Trade and Industry. The request is made when private companie s have difficulties in doing so due 
to emergency situations.  
4.78.   With regard to oil, the 2021 SEP states that oil still accounts for about 40% of Japan's primary 
energy supply and remains an important energy source with diverse usages as both fuel and 
feedstoc k. The 2021 SEP also recognizes its significant role in case of natural disasters: oil can be 
easily moved and stored to respond to supply disaster areas. Against this backdrop, the Government 
intends to (i)  diversity supply sources; (ii)  further cooperate  with oil producing countries; 
(iii) strengthen such risk management as stockpiling; (iv)  maintain domestic oil refineries and 
service stations (SSs); and (v)  further enhance supply networks to prepare for a disaster.  
4.79.   In January 2022, the Government introd uced an emergency subsidy to mitigate the impact 
of a sharp increase of oil price.39 The measure is to be invoked when the average retail price of 
gasoline increases beyond JPY  170 per litre. Under such circumstances, the subsidy is given to oil 
wholesaler s (oil refiners and importers) with a view to curbing the wholesale price and, eventually, 
the retail price. The maximum amount of subsidy was originally JPY  5 per litre; it rose to JPY  35 per 
litre in late April 2022. The authorities state that this tempo rary subsidy programme is to be 
implemented until the end of December 2022, and that the Government will continue to examine 
the maximum amount of the subsidy while considering the trend of crude oil prices.  
4.80.   As for gas, the SEP states that natural gas, acc ounting for around 40% of the energy sources, 
has high efficiency as a heat source as well as relatively low geopolitical risk compared with oil. It 
also states that natural gas plays a central role as a power source that supplements renewable 
 
37 JOGMEC, Oil and Natural Gas.  Viewed at: https://www.jogmec.go.jp/english/oil/index.html . 
38 JOGMEC, An Amendment to Expand Operations.  Viewed at: 
https://www.jog mec.go.jp/news/release/news_01_000157.html .  
39 METI, Subsidies Mitigating the Impact of a Sharp Increase of Fuel Price . Viewed at:  https://nenryo -
gekihenkanwa.jp/ . WT/TPR/S/ 438 • Japan  
 
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 energy, whil e emitting the least amount of greenhouse gases among fossil fuels. The SEP indicates 
that the Government will strengthen the stability of supply and the resilience through market 
expansions and diversification of supply sources. With regards to liquified petroleum gas, the 
Government shows its intension in the SEP to make retail prices more transparent and reduce costs 
through rationalization of operations.  
4.81.   In August 2020, the Cabinet adopted an order to implement the legal unbundling of the urban 
pipeline  business division from city -gas suppliers on 1  April 2022.40 Based on this order, the METI 
authorized three suppliers (Tokyo Gas Group, Daigas Group, and Toho Gas) to unbundle their urban 
pipelines businesses in March 2022.41 According to the authorities,  the measure is Japan's effort to 
make the gas retail market fairer and more effective after its full liberalization in 2015.  
4.2.2.2   Electricity  
4.82.   During the review period, Japan pursued the legal unbundling of transmission and distribution 
of vertically integrated  regional utilities. In April 2020, this legal unbundling took place as 
scheduled.42 Nine major utility companies, not including the Okinawa Electric Power Company, 
unbundled their power generation and retail functions from their transmission and distribution 
functions. The previous Review describes Japan's electricity system reform that started from 2016.43 
4.83.   The retail market of electricity has been liberalized since 2016. During the review period, the 
number of registered retailers increased from 655 (as of 14  May 2020)44 to 733 (as of 
28 September  2022).45 
4.84.   With regard to the pricing and support scheme, in April 2022, the Act on Special Measures 
Concerning Promotion of Use of Renewable Energy Electricity (a revis ion of the Act on Special 
Measures C oncerning Procurement of Renewable Energy Electricity by Electricity Utilities) entered 
into force.46 The new Act introduced a feed -in premium (FIP) system, with a view to encouraging 
renewable energy producers' independence from the feed -in tariff (FIT) s ystem while securing the 
investment incentives. Whereas the FIT system guarantees qualified producers that the generated 
renewable energy be purchased at fixed prices over the long term, the FIP system offers 
market -driven purchase prices that are composed  of a fixed premium (subsidy) and market prices. 
The Government describes the FIP system as a transition measure until the renewable energy sector 
can be placed under the same competition environment with other energy sectors. The authorities 
state that th e FIP system, which offers a market -driven purchase price composed of fixed premiums 
(subsidy) and market prices, started in April 2022.  
4.85.   In July 2022, the new Act started to oblige solar -power generation operators authorized under 
the FIT/FIP systems to de posit a decommissioning reserve, in principle, with the Organization for 
Cross -Regional Coordination of Transmission Operators (OCCTO). This external reserve system 
targets all the authorized operators with capacities of at least 10  kW and requires their d eposits for 
10 years before the systems cease to apply to respective projects. This measure was introduced to 
address public concerns that operators unlawfully d ump or abandon the used solar panels after their 
projects.  
 
40 METI, Cabinet Adopts an Order to Implement Legal Unbundling of Gas Pipeline Businesses . Viewed at: 
https://www.meti.go.jp/press/2020/08/20200807001/20200807001.html .  
41 METI, METI Authorized Legal Unbundling  of Electronic Transmission and Distribution Businesses . 
Viewed at:  https://www.meti.go.jp/press/2021/03/20220317006/20220317006.html .  
42 METI, METI Authorized Legal Unbundli ng of the Gas Pipeline Businesses . Viewed at:  
https://www.meti.go.jp/press/2019/03/20200313008/20200313008.html .  
43 WTO document WT/TPR/S/397/Rev.1, 6  November  2020, pp.  157-158.  
44 METI, METI Registered Electricity Retailers (14  May 2020) . Viewed at:  
https://www.meti.go.jp/press/2020/05/20200514001/20200514001.html .  
45 Agency for Natural Resources and Energy, List of All Registered Electricity Retailers . Viewed at: 
https://www.enecho.meti.go.jp/category/electricit y_and_gas/electric/summary/retailers_list/ .  
46 METI, Information Relating to the Act on Special Measures Concerning Promotion of Use of Renewable 
Energy Electricity . Viewed at: 
https://www.enecho.meti.go.jp/category/saving_and_new/saiene/kaitori/FIP_index.html#fip_seido .  WT/TPR/S/ 438 • Japan  
 
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 4.3  Manufacturing  
4.3.1   General  
4.86.   The share of m anufacturing in GDP was 19.7% in 2020, compared with 20.1% in 2019; the 
sector accounted for 15.7% of employment in 2020.  
4.87.   In 2021, manufactured products accounted for about 85.6% of Japan's total merchandise 
exports and 57.9% of imports in value. Looking a t the breakdown by export item , major contributors 
are general machinery (19.7%), transport equipment (19.5%), electrical equipment (18.4%), and 
chemicals (12.7%).47 Although the import content of exports varies across manufacturing industries, 
it remains higher for some top export s, illustrating the role that imports have been playing for 
exports in Japan and underpinning the degree of Global Value Chain (GVC) integration of these 
industries. Recent Japan's commodity exports show a trend that the export of  semiconductor -related 
items is growing rapidly and closing its gap with motor vehicles, which have been the most dominant 
item of Japan's export to date (Section  3.1).48 
4.3.2   Policy developments  
4.88.   During the review period, there were some major policy developmen ts for manufacturing 
sectors, including those relating to resilience of supply chains, capacity -building for manufacturing 
semiconductors, and human rights due diligence.  
4.89.   In FY2020, the METI launched a subsidy programme that aimed at helping manufacturing 
firms to invest domestically in building production bases for critical products and materials.49 The 
targeted products and materials include those deemed to be largely produced overseas and 
demonstrate risks as a result of the supply chain disruption (Cate gory A), and those considered 
essential for people's wellbeing, such as surgical masks, COVID -19 test kits, vaccination needles, 
and syringes (Category B). The METI later added two new categories. One is designed specifically 
for SMEs that plan to produce parts and materials needed to produce products susceptible to global 
supply chain disruptions ; the other one aimed to stabilize the supply of raw materials disrupted by 
the war in Ukraine.  The maximum amount of subsidy for a qualified project for the SME -specific 
category was JPY  500 million; for other categories, the maximum amount was JPY 15 billion.  The 
METI conducted three separate selections between May 2020 and May 2022 and adopted 
439 projects in total.50 In the same fiscal year, the METI also launc hed a subsidy programme that 
aimed at increasing the resilience of the supply chain between Japan and ASEAN countries.51 The 
amount of the budget allocated to this programme was JPY  35.2 billion for FY2020. The subsidy was 
intended to support companies est ablished, and operating, in Japan to invest in ASEAN countries to 
install new production facilities. The METI held five separate selection processes between May 2020 
and June 2022 and adopted 103  projects in total.  A new call for proposals (6th round) started on 
29 August  2022, and the adoption decision is scheduled for the end of December 2022.  
4.90.   In June 2021, the METI released an industrial strategy that stressed the significance of 
semiconductors as a foundation of a digital society and for nat ional security.52 In order to secure the 
stable domestic production of semiconductors in Japan and incentivize such investments, on 
 
47 JETRO database (based on the data of MOF). Viewed at: 
https://www.jetro.go.jp/world/japan/stats/trade/ . 
48 JETRO, World Trade and Investment Report 2022 . Viewed at: 
https://www.jetro.go.jp/world/gtir/2022.html .  
49 METI, Subsidy Programme for Promoting Domestic Investment to Strengthen Resilience of Supply 
Chain . Viewed at: https://www.meti.go.jp/covid -19/supplychain/index.html .  
50 METI (2020) , "Successful Applicants Selected for the Program for Promoting Investment in Japan to 
Strengthen Supply Chains ", 17 July. Viewed at: https://www.meti.go.jp/english/press/2020/0717_002.html ; 
METI (2 020), " Successful Applicants Selected for the Program for Promoting Investment in Japan to Strengthen 
Supply Chains ", 20 November. Viewed at : https://www.meti.go.jp/english/press/2020/ 1120_001.html ; METI  
(2021) , "Successful Applicants Selected for the Program for Promoting Investment in Japan to Strengthen 
Supply Chains (Second Call) ", 2 July. Viewed at: https://www .meti.go.jp/english/press/2021/0702_003.html ; 
and https://www.meti.go.jp/press/2022/07/20220701003/202200701003.html . 
51 JETRO, Supporting Programme for Diversifying Overseas Supply Chain . Viewed at: 
https://www.jetro.go.jp/services/supplychain/ .  
52 METI, Outline of the Law . Viewed at: 
https://www.meti.go.jp/policy/mono_info_service/joho/laws/semiconductor.html .  WT/TPR/S/ 438 • Japan  
 
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 1 March  2022, the Government implemented a new legal instrument that provided grants to 
advanced chip manufacturers under ce rtain conditions. To qualify for this grant, applicants must 
submit plans to manufacture certain semiconductors for more than 10 years. During the operation 
period, they are also required to increase output in case there is a pressing demand for 
semiconduc tors. The plans need to be authorized by the Minister of Economy, Trade and Industry to 
be eligible for the grants. As at end -September 2022, three projects were authorized for the grant 
scheme. The maximum amounts of the grants given to these t hree projec ts were JPY  476 billion and 
JPY 92.9 billion. The authorized operators are also eligible to obtain interest subsidies through 
financial institutions.53 
4.91.   In October 2020, Japan released a National Action Plan on Business and Human Rights 
(2020 -2025).54 The A ction Plan called for, inter alia, the promotion of corporate responsibility by 
incorporating human rights due diligence within supply chains (that is, proactively managing adverse 
impacts on human rights within supply chains and eventually taking appropri ate measures to address 
those impacts).  It also addressed supports for SMEs to increase their awareness of business and 
human rights. To elaborate these plans, Japan published a guideline for companies, including SMEs, 
concerning their responsibility to re spect human rights.55 According to the guideline, companies are 
strongly encouraged, regardless of their size and businesses, to externally express their commitment 
to respecting human rights.  
4.3.3   Border measures  
4.92.   The average MFN applied tariff for manufacturing products (HS 25 -97) remained unchanged 
at 3.3% in FY2022, just below the average bound tariff of 3.4% (Section  3.1). Tariff quotas (TQs) 
continued to apply to 62 manufactured items (at HS  nine-digit level), of which 32 were under HS  41 
(raw h ides and skins, and leather), 5  were under HS 50 (silk), and 25 were under HS 64 (footwear). 
Footwear, and raw hides and skins remain subject to TQs, and thus benefit from high tariff 
protection, with average MFN applied tariffs of 37.7% and 10.0%, respect ively, at HS  nine-digit 
level; peak rates (AVEs) were on footwear (320.8%) and silk (109.1%). On leather footwear, in 
FY2020, FY2021, and FY2022, the out -of-quota tariff rates were either 30%, or JPY  2,400 or 
JPY 4,300 per pair, whichever is higher; accord ing to the authorities, in FY2020 and FY2021, their 
TQ utilization rate was 35.9% and 30.9%, respectively. Regarding some raw hides and skins, and 
leather, in -quota rates stood at 12% (bovine, equine) or 16% (sheep, goat), and the out -of-quota 
rate at 30%;  according to the authorities, their average quota utilization rates were 9.8%  in FY2020 
and 9.7%  in FY2021. In FY 2021, the fill rate of silk -worm cocoons and raw silk, which are subject 
to a zero in -quota rate and out -of-quota rates of JPY  2,523/kg and JP Y 6,978/kg, respectively, stood 
at 27.1%.56 
4.4  Services  
4.4.1   Financial services  
4.4.1.1   General background  
4.93.   Japan is one of the main financial services markets in the world and has a fully developed and 
highly diversified financial services sector, which continued to grow during the review period 
(Boxes  4.1-4.4). Finance and insurance  accounted for 4.6% of GDP in 2021, compared with 4.1% 
in 2018; at end -2021, 2.5% of the labour force was employed in this sector.  Boxes 4.1 to 4.4 provide 
some main statistical indicators of the sector and its various subsectors.  
 
53 METI, Interest Subsidy for Certain Semiconductors . Viewed at: 
https://www.meti.go.jp/policy/mono_info_service/joho/laws/semiconductor/semiconductor_risihokyuu.html . 
54 MOFA, Business and Human Rights . Viewed at: 
https://www.mofa.go.jp/fp/hr_ha/page23e_000551.html .  
55 METI, Government Publishes a Guideline for respecting Human Rights to Build a Responsible Supply 
Chain . Viewed at: https://www.meti.go.jp/press/2022/09/20220913003/20220913003.html .  
56 WTO document G/AG/N/JPN/278, 14  June 2022.  WT/TPR/S/ 438 • Japan  
 
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 Box 4.1 Main economic indicators of the financial services sector, 2017 -22 
Share of financial services in GDP  
2017: 4.0%  
2020: 4.3%  
Share of financial services in total employment  
2018: 2.4%  
2021: 2.5%  
Financial services (except insurance and pension services) credit  
2018: JPY  1,272.6  billion  
2021: JPY  1,485.7  billion  
Insurance and pension services credit  
2018: JPY  270.6  billion  
2021: JPY  239.8 billion  
Financial services (except insurance and pension services) debit  
2018: JPY  905.6  billion  
2021: JPY  1,009.1  billion  
Insurance and pension services debit  
2018: JPY  788.6  billion  
2021: JPY  1,274  billion  
Capital stock of financial services providers abroad (2021) : 
Total amount of capital stock of foreign -controlled banks  operating in Japan : JPY 22.5 billion  
Total amount of capital stock insurance companies operating in Japan: JPY  37,857  billion  
Ratio of capital stock of foreign -controlled ba nks to t otal amount of capital stock of banks operating in 
Japan: 0 .2%a 
Ratio of capital stock of foreign -controlled insurance companies to t otal amount of capital stock of insurance 
companies operating in Japan: 8.9%  
Significance of the financial servic es arm of Japan Post  
− 2018 deposits: JPY  180.9  trillion, equivalent of 33% of GDP  
− 2021 (end -March) deposits: JPY  193.4  trillion, equivalent of 36% of GDP  
− 2018 market share in insurance services: 20.2%  
− 2021 (end -March) market share: 17%  
a This figure only takes into account the capital of foreign banks operating as subsidiaries, whereas 
the dominant form of operation of foreign banks in Japan is the use of branches, which do not have 
capital, per se, only quasi -capital, parked in Japan, of at least JPY  2 billion per branch.  
Source:  Information provided by the authorities.  
Box 4.2 Main indicators of the banking sector, 2018 and 2021  
Banking services  
Number of banks  
End-March 2018: 195 banks (of which, foreign -controlled banks : 3; branches of foreign banks : 56) 
End-March 2021: 193 banks (of which, foreign -controlled banks : 3; branches of foreign banks : 55) 
 
Recent consolidation (since 2019)  
April 2019: Kansai Mirai Ba nk, Ltd (merger of Kansai Urban Banking Corporation and Kinki Osaka Bank, Ltd)  
January 2020: Tokushima Taisho Bank, Ltd (merger of Tokushima Bank, Ltd and Taisho Bank, Ltd)  
July 2020: Custody Bank of Japan, Ltd (merger of JTC Holdings, Ltd, Japan Trustee S ervices Bank, Ltd, and 
Trust & Custody Services Bank, Ltd)  
October 2020: Juhachi -Shinwa Bank, Ltd (merger of Juhachi Bank, Ltd and Shinwa Bank, Ltd)  
January 2021: Daishi Hokuetsu Bank, Ltd (merger of Daishi Bank, Ltd and Hokuetsu Bank, Ltd)  
May 2021: San Ju San Bank, Ltd (merger of Mie Bank, Ltd and Daisan Bank, Ltd)  
Concentration/share of the various types of banks in the total balance sheet for banks  
(JPY 100 million)  
End-March 2018 : total balance sheet: 12,658,092 (foreign -controlled banks: 7,699; branches of foreign 
banks: 509,923)  
End-March 2021 : total balance sheet: 13,937,835 (foreign -controlled banks: 10,379; branches of foreign 
banks: 681,211)  
Lending activities  (credit volumes)  
End-March 2018: JPY  580,873.3  billion (foreign -controlled banks:  548 billion ; branches of foreign banks: 
8,830  billion ) 
End-March 2021: JPY  622,023.2  billion (foreign -controlled banks: 817  billion ; branches of foreign banks: 
9,685  billion ) WT/TPR/S/ 438 • Japan  
 
- 116 - 
 Securities activities : (securities holding in bank accounts)  
End-March 2018: JPY  218,304  billion (foreign -controlled banks: 22  billion ; branches of foreign banks: 
1,854  billion ) 
End-March 2021: JPY  261,230  billion (foreign -controlled banks: 3 8 billion ; branches of foreign banks: 
1,976  billion ) 
Non-performing loans as a % of total bank assets : 
End-March 2018: 0.6%  
Net operating profits per employee: JPY  10.8 million  
Net income per employee: JPY  10.2 million  
End-March 2021: 0.6%  
Net operating profits per employee: JPY  10.4 million  
Net income per employee: JPY  6.5 million  
Source:  Information provided by the authorities.  
Box 4.3 Main indicators of the insurance sector, 2018  and 20 21 
Insurance  
Number of insurance companies  
2018: 93 (life: 41 (of which branches of foreign insurance companies, 1); non -life: 52 (of which branches of 
foreign insurance companies, 22))  
2021: 95 (life: 42 (of which branches of foreign insurance companies, 1); non -life: 53 (of which branches of 
foreign insurance companies, 20))  
 
Recent consolidati on (since 2019)  
July 2019: Sompo 24 Insurance merged with Saison Automobile and Fire Insurance  
Total balance sheet of the insurance sector  
End-March 2018: JPY  414,085  billion (of which life insurance: 92.1%; non -life: 7.9%)  
End-March 2021: JPY 445,368  billion (of which life insurance: 92.6%; non -life: 7.4%)  
Concentration: (cumulative market share of the top five companies, end -March 2018)  
Life insurance (%):  
Nippon Life Insurance Company: 17.9  
JP Insurance: 17.0  
Meiji Yasuda Insurance Compa ny: 10.3  
Dai-ichi Life Insurance Company: 9.4  
Sumitomo Life Insurance Company: 8.6  
Non-life insurance (%):  
Tokio Marine & Nichido Fire Insurance Co. Ltd: 29.0  
Sompo Japan Nipponkoa Insurance Inc.: 22.4  
Mitsui Sumitomo Insurance Company Ltd: 21.6  
Aioi Nissa y Dowa Insurance Co. Ltd: 11.4  
AIG General Insurance Company, Ltd: 2.5  
Penetration (premiums as share of GDP)  
End-March 2018 : Life insurance: 5.9%; non -life insurance: 1. 9% 
End-March 2021: Life insurance: 5.5%; non -life insurance: 2.1%  
Source:  Information provided by the authorities.  
Box 4.4 Main indicators of the pension fund and stock exchange, FY2017/18 and 
FY2020/21  
Pension funds  
Number of pension funds  
2017: 19,223  
2020: 18,944  
 
Total assets  
2017: JPY  96.2 trillion  
2020: JPY  106.6  trillion  WT/TPR/S/ 438 • Japan  
 
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 Stock exchange  
Capitalization of the companies listed  
2018: JPY  582.7 trillion  (106.15% of nominal GDP; 109.06% of real GDP)  
2021: JPY  748.5 trillion  (139.76% of nominal GDP; 142.36% of real GDP)  
 
Gross value of publicly issued bonds  
2018: JPY  179.1 trillion  (issued by non -Japanese residents in the Japanese domestic market payment basis) 
(JPY 2.6 trillion ) 
2021: JPY  261.6 trillion  (issued by non -Japanese residents in the Japanese domestic market payment basis) 
(JPY 0.7 trillion ) 
Source:  Information provided by the authorities.  
4.94.   Japan's financial services sector is relatively open.57 There are no foreign equity restrictions. 
Criteria to obtain a licence are the same for foreign and domestic companies. There are no nationality 
or residency r equirements for members of the board of directors. No banking services are reserved 
for domestic suppliers. Commercial presence is required for lending and deposit -taking activities.  
4.95.   Japan's financial sector has withstood the pandemic shock relatively well . It has been 
observed that the share of non -performing loans in Japan's economy is relatively low and that capital 
adequacy of the major financial institutions appears to be in line with other major economies.58 
4.96.   The Financial Services Agency (FSA) is resp onsible for formulating policies on financial 
services and, together with the Bank of Japan, remains the supervisory body of all financial services 
in Japan. The FSA aims to (i)  stabilize and facilitate Japan's financial system; (ii)  protect investors 
and depositors and enhance their convenience; and (iii)  secure fairness and transparency of the 
financial market. Competition issues in the sector are under the responsibility of the Japan Fair Trade 
Commission. Japan has concluded 25 bilateral agreements and memoranda of understanding 
(MOUs) with its trading partners, notably concerning prudential regulation and supervision.  
4.97.   In January 2021, the FSA and Local Finance Bureaus of the Ministry of Finance (MOF) 
established the Financial Market Entry Office in orde r to expand Japan's role as an international 
financial centre. The Office, as a single window, aims at assisting newly entering asset management 
firms by handling all the regulatory process from pre -application consultation and registration to 
supervision after the registration. All the communication is available online in English. The Office 
also serves as a contact point for any inquiry on procedures under financial laws and regulations in 
connection with the establishment of a business base in Japan by a ll types of foreign financial 
business operators. The Office replaced the Financial Market Entry Consultation Desk. As at 
end-August 2022, the Office had received 264 inquiries from foreign financial business operators 
and completed 12 registrations.  
4.98.   Accor ding to the authorities, Japan has a generally proactive attitude towards regulation and 
supervision of cryptocurrencies and digital assets. As at August 2022, there were 31 crypto exchange 
service providers under the supervision of the FSA. Japan became t he first country to regulate 
virtual -currency exchanges in 2017, when the FSA introduced a registration system. The Japan 
Virtual and Crypto Assets Exchange Association (JVCEA), which has a self -regulatory status certified 
by the FSA, was formed in April 2 018. 
4.4.1.2   Regulatory developments in banking  
4.99.   Japan's legislation on foreign investment also applies to the financial services sector 
(Section  2.4). As a consequence, foreign investors in Japan's financial services sector are also 
subject to the newly tightened screening and notification requirements. However, exemptions may 
apply when foreign financial institutions satisfy certain requirements, namely: (i)  the foreign investor 
and closely related persons will not serve on the board of the target company as direc tors or audit 
and supervisory board members; (ii)  the foreign investor will not make proposals at shareholders' 
meetings, whether directly or through third parties, to dispose of material businesses in designated 
industries; and (iii)  the foreign investor will not access sensitive confidential technologies that are 
related to the target company's designated business. Also, foreign investors may benefit from a 
 
57 OECD Services Trade Restrictiveness Index Regulatory Database.  
58 OECD (2021), Economic Survey of Japan 2021 . WT/TPR/S/ 438 • Japan  
 
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 registration moratorium, of up to five years, if they are registered as investment operators with a  
foreign authority, with a proven track record in this country.  On 22  November  2021, an entry system 
with simplified procedures was established for offshore fund managers with a proven track record in 
specified foreign jurisdictions and for managers with q ualified overseas clients.59 
4.100.   No regulatory changes took place during the review period with regard to licensing 
procedures and requirements for banks.  
4.101.   In May 2021, the Government amended the Banking Act and the Financial Instruments and 
Exchange Act with a  view to strengthening and stabilizing the financial services sector.60 Most 
importantly, the amendments widened the scope of services that a parent bank may provide. The 
newly added services relate to digitalization and regional revitalization, allowing t he sale of IT 
systems, and the provision of data analysis services, marketing and advertisement services, and 
management consultation services.  
4.102.   In addition, the Government launched a fund -grant system with a total endowment of 
JPY 35 billion, which is aime d to encourage regional banks to merge and integrate their operations 
with a view to increasing their productivity.61 To qualify for a grant, applying regional banks must 
have their implementation plan authorized by the FSA. The grant aims at covering initial costs such 
as investment in the integration of IT systems; the maximum grant amount is JPY  1 billion. Until 
Septe mber 2022, funds had been granted to one bank.  
4.103.   The Government has maintained a deposit insurance system to protect depositors in failed 
financial institutions and to contribute to the smooth settlement of funds. General deposits including 
time deposits are  insured up to a value of JPY  10 million. Protection in excess of that amount depends 
on the asset status of the failing financial institution. The Deposit Insurance Corporation of Japan 
(DICJ) is responsible for operating this scheme.  
4.104.   New regulations for virtual currencies came into effect in May 2020, amending the Payment 
Services Law and the Financial Instruments and Exchange Law. The framework is designed to protect 
investors who entrust virtual -currency exchanges and custodians with their assets, and a lso to place 
derivatives, security token offerings (STOs) and initial coin offerings under the jurisdiction of the 
FSA. The amendment provides for stricter monitoring of market manipulation, with a view to 
reducing speculation. In addition, the FSA granted  self-regulatory status to the Japan STO 
Association, which was set up in 2019 by five major Japanese financial institutions. In 2021, the FSA 
requested the JVCEA to implement a framework for the notification of originator and beneficiary 
information upon crypto asset transfers, to be in line with measures on anti -money laundering.  
4.105.   In March 2020, the FSA revised Japan's voluntary Stewardship Code for Institutional 
Investors, as part of a wider corporate governance reform. By subscribing to this Code, invest ors 
commit to disclosing how they exercise their stewardship activities. Key changes reflected in the 
Revision Code include a stronger focus on sustainability by incorporating environmental, social, and 
governance factors; disclosure of reasons for votes o n agenda items; and application of the Code to 
assets other than listed shares (such as corporate pension funds). The number of signatories to the 
Code has increased to 322 institutional investors as at August 2022.  
4.106.   In May 2021, an amendment to the Payment  Services Act entered into force, removing the 
previous cap of JPY  1 million on transfer services by non -bank institutions. This amendment also set 
up multiple licence and registration levels that depend on the size and scope of operations. Overall, 
the am endment expands the scope of fund transfer services in Japan and provides new entrants 
greater flexibility and choices.  
 
59 FSA (2021), "To Operators of Specially Permitted Businesses for Foreign Investors, etc. / during 
Transition Period", 22  November . Viewed at: https://www.fsa.go.jp/en/news/2021/20211122 /index.html . 
60 Nihon Hourei Sakuin. Viewed at: https://hourei.ndl.go.jp/simple/detail?lawId=0000155159&current= -
1; and E -Gov. Viewed at: https://elaws.e -gov.go.jp/document?lawid=356AC0000000059 , and https://elaws.e -
gov.go.jp/document?lawid=323AC0000000025_20 220901_501AC0000000071 . 
61 FSA. Viewed at: https://www.fsa.go.jp/common/diet/204/01/setsumei.pdf . WT/TPR/S/ 438 • Japan  
 
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 4.107.   In April 2022, the FSA finalized the amendments to the regulatory notices to implement the 
finalized Basel III framework.62 
4.4.1.3   Regulatory d evelopments in insurance  
4.108.   The Government made several amendments to the Insurance Business Act and relevant 
regulations during the review period. In an amendment to the Act adopted in March 2022, the 
Government announced that it would extend its financial s upport to the Life Insurance Policyholders 
Protection Corporation of Japan by five years, until end -2027. The Corporation was established in 
1998 to offer compensation and support services to members of life insurance companies that had 
gone bankrupt. The amendment also stipulates that the Government could provide additional 
financial support to the Corporation in case its budget, made up from member contributions, is not 
sufficient to cover operations.  
4.4.2   Telecommunication services  
4.109.   Information and communicati on services contributed 5.1% to GDP in 2020 (Table  1.2), the 
last year for which sectoral figures were available. Traditionally, Japan is at the forefront of 
developments in the communications industry. For example, it has the highest number of mobile 
broadband subscriptions per 100 inhabitants in the OECD.63 Box 4.5 presents the main economic 
indicators of Japan's telecommunications sector.  
Box 4.5 Main economic indicators and regulatory features of the telecommunications 
sector  
Economic data  
Penetration rates (2021):  
Total telephone subscribers : 209.8 % (including fixed and mobile phone subscribers)  
Mobile phone subscribers  (% total telecom subscribers): 76.7%  
Internet users (per 100 inhabitants) : (i.e. the percentage of households in which one or more person uses 
the Internet): 88.4%  
Broadband Internet subscribers  (per 100 households that use the Internet from computers at home, tablets, 
and other devices): 98.9%  
Fixed broadband subscribers : 43,832,165 (March 2022)  
Main actors:  
Number of companies providing telecom services : 
330 carriers (owning networks and circuits) are registered with the Minister; and  22,781 carriers (w ithout 
networks) have submitted notifications (up to  1 April 2022). Some telecommunications carriers that have 
submitted notification deploy their own telecommunication facilities.  
 
Names and market shares of the leading companies for fixed telecom service s (March 2022):  
NTT East and NTT West (combined market share for fixed telecom service 16.6%), KDDI (16.9%)  
 
Name and market shares of the leading companies for mobile telephones services  (March  2022):  
NTT DoCoMo (36.3%), KDDI group (including Okinawa Cell ular, 27.1%), SoftBank group (21.1%)  
 
Name and market share of the leading providers of broadband Internet services (March 2022):  
NTT group (23.4%), KDDI group (30.8%), pure ISP providers (12.5%)  
 
Foreign ownership participation in telecom companies : Except for the Nippon Telegraph and Telephone 
Corporation (NTT), there are no restrictions for Japan's telecommunications carriers. Foreign ownership 
shares of listed telecom companies are not available, except for NTT, where it stood at 23.5% a s at June 
2022.  
State ownership : NTT 36.0%  
Establishment of new companies, mergers, or closures since the last Review: None. 
Registered telecommunications carriers increased by 13, notified telecommunications carriers increased by 
3,095 (25 newly registered, 3,519 newly notified) from 1  September  2019 to 1  April 2022.  
Source:  Information provided by the authorities.  
 
62 FSA, FSA Weekly Review No.  499, 28 July 2022. Viewed at: 
https://www.fsa.go.jp/en/newsletter/weekly2022/499.html . 
63 OECD (2021), Economic Survey of Japan . WT/TPR/S/ 438 • Japan  
 
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 4.110.   The teleco mmunications regime, supervised by the Ministry of Internal Affairs and 
Communication (MIC), has been described in past TPR reports64; the regulatory regime did not 
undergo any significant changes during the review period. In particular, there were no chan ges 
regarding licensing procedures, the mobile interconnection regime, facility sharing, local loop 
unbundling, number portability, spectrum management, and accounting rates. However, certain 
regulatory changes and developments took place in areas such as mobile phone fees, evolution of a 
digital society, and protection of private information . 
4.111.   During the review period, Japan experienced a further major fall in mobile phone fees. The 
Government is actively pursuing a policy aimed at lowering the costs linked  to the use of mobile 
phones. In October 2020, the MIC released an action plan for fair competition in the mobile phone 
market, comprising three pillars: (i)  achievement of simple and reasonable fees and services; 
(ii) promotion of fair competition between  operators; and (iii)  facilitation of portability between 
operators. In response, major mobile phone service providers unveiled new service plans that 
sharply lowered mobile phone fees. For example, the latest survey released by the MIC in May 2022 
shows t hat the monthly mobile fee (4G network, 5  GB plan) for a smartphone in Tokyo dropped by 
47.5% from 2019 (JPY  6,250) to 2021 (JPY  2,972). The same survey also shows that various types 
of mobile phone fees in Tokyo as of 2021 are comparatively lower than oth er major cities abroad. It 
would appear that the COVID -19 pandemic, coupled with new pricing plans for broadband that 
reduced prices drastically, resulted in a strong increase in mobile data usage.65 
4.112.   With a view to advancing the formation of a digital soci ety, the Government enacted the 
Basic Act on the Formation of a Digital Society in May 2021. It entered into force on 
1 September  2021. According to the Act, the digital society is defined as " a society in which creative 
and vigorous development is enabled  in all fields by obtaining, sharing or transmitting a wide variety 
of information and knowledge globally in a free and safe manner via the internet and other advanced 
information and telecommunications networks"  (Article 2) . The Act abolished the Basic Ac t on the 
Formation of an Advanced Information and Telecommunications Network Society (Basic Act on IT) 
that was enacted in 2000 and laid the foundation for Japan's subsequent IT policies. Under the Act, 
a newly established Digital Agency is empowered to de velop a priority programme on the formation 
of a digital society.66 In its latest strategy published in June 2022, seven basic priorities are 
identified.67 In relation to telecommunications services, the Agency aims at advancing developments 
in IT infrastructure that support a digital society (e.g. optical fibre cables, 5G, and data centres), 
supporting research and development of technologies that are neces sary for a digital society (e.g.  IT, 
computing security, and supercomputers), and improving the education of digital human resources.  
4.113.   The Act on the Protection of Personal Information was amended in June 2020 and entered 
into force in April 2022. The amend ed Act establishes, inter alia, obligations borne by operators that 
handle personal information and that transfer personal data to a third party outside Japan. Under 
the Act, the operators must obtain consent from the data subjects for the transfer of data  abroad. 
They are obliged to provide information on the country to which data are transferred, the personal 
information protection system in the destination country, and details of protective measures taken 
by receiving operators. Operators are also requir ed to ensure that the receiving operators manage 
the transferred data in compliance with relevant regulations. To enforce these obligations, the 
Personal Information Protection Commission (PIPC) has the authority to issue orders to foreign and 
domestic com panies and charge criminal penalties for failures to comply with such orders. Since it 
is difficult to enforce such regulations outside Japan, the PIPC is authorized to collaborate with 
foreign regulators for the purpose of enforcing the Privacy Act. The A ct reinforces the operators' 
obligations of report and notification in case of data breaches. The PIPC has published guidelines for 
the implementation of the Act.68 
4.114.   While the backbone of Japan's past high growth has been manufacturing, the 
communications s ector becomes an increasingly important driver of productivity growth. 
Applications using 5G telecommunication networks, allowing the transmission of large data volumes 
at low cost and high speed, stretch from the smart cities initiative, e -health (particu larly for an 
ageing population), autonomous vehicles, the Internet of Things, e -government, and smart grids 
 
64 WTO documents WT/TPR/S/310/Rev.1, 6  May 2015; and WT/TPR/S/351/Rev.1, 20  June 2017.  
65 OECD (2021), Economic Survey  of Japan . 
66 Digital Agency, About Us . Viewed at: https://www.digital.go.jp/en . 
67 Digital Agency. Viewed at: https://www.digital.go.jp/policies/priority -policy -program/#document .  
68 PIPC. Viewed at: https://www.ppc.go. jp/personalinfo/legal/ . WT/TPR/S/ 438 • Japan  
 
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 and factories (Section  2.4). To this end, for example, the programme for "Strategic Information and 
Communications R&D Promotion" gives incentives f or collaboration between ICT firms, universities, 
and local government research institutes. Overall funding for this programme was JPY  1.5 billion in 
2018 and JPY  1.0 billion in 2021.  
4.115.   Under the GATS, Japan made commitments on all telecommunications subsect ors (with the 
exception of telegraph services), be they basic or value added, subscribed to the GATS disciplines 
of the reference paper. Japan listed two  restrictions, both for NTT and KDDI: a limitation on foreign 
ownership of 20%, and a nationality requi rement for the majority of the board. This situation related 
to NTT and KDDI is echoed in Japan's bilateral or regional agreements, but the foreign ownership 
limitation was scheduled at a less restrictive, status quo level of one third, which corresponds t o the 
applied regime.  
4.4.3   Transport services  
4.4.3.1   Maritime transport  
4.116.   In 2021, Japan relied on maritime transport for 70.9% of its goods imports and for 68.0% 
of its goods exports, in value.69 
4.117.   Responsibility for maritime shipping policy and national legislation rest s in the Maritime 
Bureau of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The MLIT  represents 
Japan at the International Maritime Organization, which sets the worldwide standards for safety, 
security, and environmental norms for marit ime transport.  
4.118.   The main laws covering the maritime transport of goods remain the Basic Act on Maritime 
Policy, the Carriage of Goods by Sea Act, the International Carriage of Goods by Sea Act, the 
Maritime Traffic Safety Act, the Port and Harbour Act, the Port Regulations Act, and the Ship Safety 
Act. 
4.119.   Regarding the support regime, in 2020, Japan extended the "roll -over relief system" until 
the end of FY2022: it defers taxation of capital gains resulting from the sales of old vessels replaced 
by new and envi ronmentally friendly ones.70 Japan also extended the application of deduced rate of 
registration and licence tax (from 0.4% to 0.35%) until the end of FY2023, with a view to increasing 
Japanese -flagged overseas vessels. In 2021, a special property taxation  measure for 
Japanese -flagged overseas vessels was extended until the end of FY2023.71 This measure reduces 
assessed value for property tax to 1/18 of the original value. The additional depreciation applicable 
to Japanese -flagged vessels fulfilling certain  conditions, notably of environmental and 
high-technology natures, was also extended for two years until the end of FY2022.  
4.120.   During the review period, the regime of the tonnage tax remained unchanged.72 As the 
current tonnage tax ceases to apply by the end of FY2022, the MLIT has requested that its application 
be extended for five years until the end of FY2027.73 
 
69 MLIT, Trade Value by Means of Transport . Viewed at:  
https://www.mlit.go.jp/statistics/details/content/001517680.pdf .  
70 MLIT, FY2020 Summary of the Ta x System Reform . Viewed at:  
https://www.mlit.go.jp/page/content/001320178.pdf .  The MLIT requests that this system be extended for 
another three years until the end of FY2025. MOF, Requests for the FY2023 Tax System . Viewed at:  
https://www.mof.go.jp/tax_policy/tax_reform/outline/fy2023/request/mlit/05y_mlit_k_20.pdf .  
71 MLIT, FY2021 Summary of the Tax System Reform . Viewed at:  
https://www.mlit.go.jp/page/content/001377449.pdf .  
72 The regime is described in the previous report (WTO document WT/TPR/S/397/Rev.1, para.  4.222).  
73 MOF, Requests for the FY2023 Tax System . Viewed at:  
https://www.mof.go.jp/tax_policy/tax_reform/outline/fy2023/request/mlit/05y_mlit_k_19.pd f.  WT/TPR/S/ 438 • Japan  
 
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 4.121.   The third quinquennial Basic Plan on Ocean Policy adopted by the Cabinet in May 2018 has 
remained unchanged.74 According to the authorities, the fourth Plan is to be adopted around May 
2023.75 
4.122.   The competition regime remained the same during the review period; the last review of the 
antitrust immunity provided by the Marine Transportation Act was concluded in 2015.  
4.123.   The applied market access regime remained unchanged. Japan does not discriminate against 
foreign participation in international maritime services and accords national treatment.  
4.124.   Regarding ports, in July 2022, the Cabinet decided an annua l Specific Port Facility 
Development Project Basic Plan.76 Based on the Plan, the MLIT is to facilitate financing 
JPY 83.5 billion in the form of local government bonds that are used for developing facilities in ports 
and their surrounding industrial areas .77 The Plan targets 72 ports in Japan. In June 2022, Japan 
established a SDGs Partner Registration System for ports.78 The MLIT launched this system with a 
view to encouraging port operators to notice and visualize the impact of their operation on SDGs. I n 
addition, the MLIT is considering a certification system for decarbonization of port terminals.79 
4.125.   In July 2022, the MLIT announced the Action Plan to address labour shortages in ports and 
harbour transportation businesses.80 The MLIT's recent survey shows that more than 50% of the 
port and harbour operators that answered the survey in Japan face labour shortages, and that that 
40% of them have already seen its negative impact on their operations. The Action Plan calls for, 
inter alia, the enhancement of labour condition and promotion of fair transactions and  business 
practices.  
4.4.3.2   Air transport  
4.126.   The Civil Aviation Bureau in the MLIT is responsible for air transport policy, preparing 
legislation; setting standards; and providing air  navigation services, security, aeronautical 
regulation, and meteorology. The Bureau also sets uniform landing charges for airports it owns and 
receives notifications of landing charges from other airports.  
4.127.   The main laws covering civil aviation remain the Civil Aeronautics Act and the Airport Act.  
4.128.   During the review period, the Civil Aeronautics Act was revised several times. The 2020 
amendments to the Act (promulgated on 24  June 2020) established a new registration system for 
unmanned aircraft (drones) with  the Minister of Land, Infrastructure and Transport with a view to 
ensuring the safety of drone flights. The registration system entered into force on 20  June 2022; 
flights of drones weighing 100  g or more without registration have been prohibited since th en. 
Registration can be done online. The 2021 amendments to the Act (promulgated on 11  June 2021) 
established an aircraft certification and pilot licence system for drones, allowing them to fly 
unassisted over manned zones beyond visual line of sight (Leve l 4 flight). Specifically, Level 4 flights 
are permitted and approved if the aircraft is: (i)  certified to "Type One" aircraft certification; 
(ii) operated by a person with a "First Class" pilot's licence; and (iii)  in compliance with the operating 
rules. The system is to enter into force on 5  December  2022. In its Roadmap 2022 towards the 
 
74 The Basic Plan on Ocean Policy. Viewed at: 
https://www8.cao.go.jp/ocean/english/plan/pdf/plan03_e.pdf . 
75 Prime Minister's Office, Schedule for Adopting the Fourth Quinquennial  Basic Plan on Ocean Policy . 
Viewed at: https://www.kantei.go.jp/jp/singi/kaiyou/sanyo/dai65/sankou1.pdf .   
76 MLIT,  Cabinet Adopts FY2022 Specific Port Facility Development Project Basic Plan . Viewed at: 
https://www.mlit.go.jp/report/press/port04_hh_000354.html .  
77 According to the authorities, in order for local governments and other organi zations to smoothly issue 
local bonds and procure funding, the MLIT prepares the Specific Port Facility Development Project Basic Plan 
and facilitates financing from the MIC, which is the consultant for issuing local bonds, and the MOF, which is 
the suppli er of low -interest government funding. Based on this plan, the Government is to endeavour to loan 
the Fiscal Loan Fund.  
78 MLIT,  MLIT Starts a SDGs Partner Registration System . Viewed at:  
https://www.mlit.go.jp/report/press/port05_hh_000212.html .  
79 MLIT,  MLIT Considers a Certification System for Decarbonization of Ports . Viewed at:  
https://www.mlit.go.jp/report/ press/port04_hh_000352.html .  
80 MLIT,  MLIT Sets Out an Action Plan to Deal with Labour Shortages in Ports and Harbours . Viewed at:  
https://www.mlit.go.jp/report/press/port02_hh_000164.html .  WT/TPR/S/ 438 • Japan  
 
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 Industrial Revolution in the Skies, the Government indicates a target to realize Level 4 flights in 
remote islands and mountainous areas during FY2021. The 2022 amendment s (promulgated and 
enforced on 10  June 2022) stipulate that the Minister shall formulate a basic policy for the promotion 
of aviation decarbonization and promote decarbonization initiatives by Japanese airlines with a view 
to promoting decarbonization in t he aviation sector. In addition, from the perspective of ensuring 
user-friendliness, the Policy on Infrastructural Strengthening in the Air Transportation Business 
includes measures such as reduction or exemption of airport fees in FY2022, to support Japan ese 
airlines.81 
4.129.   The Airport Act was also revised during the review period. The 2022 amendment to the Act 
(promulgated and enforced on 10  June 2022) requires that airport managers make airport 
decarbonatization promotion plans and have them authorized by th e Minister of Land, Infrastructure, 
Transport, and Tourism.82 The plan describes how to: (i)  develop solar power supplies within or 
around its own premises; and (ii)  build new runways for airplanes to move efficiently on the ground. 
Japan aims to achieve c arbon neutral at airports in their entirety by FY2050.  
4.130.   During the review period, Japan implemented several measures to support the aviation 
industry, especially considering the impact of the COVID -19 pandemic. In 2021, the aviation fuel 
tax was temporarily  lowered from JPY  18,000/kilolitre to JPY  9,000/kilolitre in FY2021.83 In FY2022, 
the tax has been brought up to 13,000/kilolitre; this remains lower than the pre -COVID 19 level.84 
Japan also reduced 45% of the landing charges applied to domestic flights u sing 
government -controlled airports between August 2020 and February 2021; it also exempted parking 
charges in these airports (from March 2021). International flights served by domestic or foreign 
airlines are not subject to these measures.85 In addition, Japan decided to extend this fee relief 
beyond February 2021 with the changes in some details (e.g. the addition of air navigation service 
charges). This measure was extended with modification until February 2023. This fee relief applies 
only to domestic f lights. Furthermore, the Civil Aviation Bureau provided interest -free loans to airport 
companies in FY2021 and FY2022.  
4.131.   Japan has bilateral air transport agreements with 60 trading partners; it currently has 
"open -sky" agreements with 36 trading partners to  mutually abolish restrictions on bilateral air 
transport services, such as caps on the number of operators and flights.  
 
81 Japanese Law Translation, The Proposed Act Partially Amending the Civil Aeronautics Act and Other 
Legislation . Viewed at: https://www.japaneselawtranslation.go.jp/outline/42/905R312.pdf . 
82 MLIT,  Summary on the Draft Amendment to the Airport Act . Viewed at:  
https://www.mlit.go.jp/policy/content/001470429.pdf .  
83 MLIT, FY2021 Summary of the Tax System Reform . Viewed at:  
https://www.mlit.go.jp/page/content/001377449.pdf . 
84 MLIT, FY2022 Summary of the Tax System Reform . Viewed at:  
https://www.mlit.go.jp/page/content/001445195.pdf . 
85 MLIT. Viewed at: https://www.mlit.go.jp/report/press/kouku04_hh_000220.html . WT/TPR/S/ 438 • Japan  
 
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 5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and major HS chapter/subheading, 
2017 -21 
HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
Total exports (USD billion)  698.1  738.2  705.7  641.3  757.1    
(% of total exports)  
01 Live animals and products  0.3 0.3 0.3 0.3 0.3 
02 Vegetable products  0.1 0.1 0.1 0.1 0.1 
03 Fats and oils  0.03 0.03 0.03 0.04 0.04 
04 Prepared food, beverages and tobacco  0.5 0.6 0.6 0.8 0.8 
05 Mineral products  1.8 1.9 2.1 1.3 1.5  
27 Mineral fuels and oils  1.6 1.8 2.0 1.2 1.4 
06 Chemicals and products thereof  7.7 8.3 8.7 9.6 9.7  
28 Inorganic chemicals  0.7 0.8 0.9 1.1 1.2  
29 Organic chemicals  2.6 2.6 2.5 2.3 2.4  
38 Miscellaneous chemical products  1.5 1.6 1.7 1.9 1.9 
07 Plastics and rubber  5.1 5.0 5.0 5.3 5.4  
39 Plastics and articles thereof  3.6 3.5 3.6 4.0 4.0  
40 Rubber and articles thereof  1.5 1.4 1.5 1.3 1.4 
08 Raw hides and skins; leather, furskins and articles thereof  0.04 0.03 0.03 0.03 0.04 
09 Wood, cork, straw  0.04 0.04 0.05 0.1 0.1 
10 Pulp of wood; paper and paperboard  0.6 0.6 0.5 0.5 0.5 
11 Textiles and textile articles  1.1 1.1 1.1 1.0 1.0 
12 Footwear, headgear, etc.  0.03 0.03 0.03 0.04 0.04 
13 Articles of stone, plaster, cement  1.0 1.0 1.0 1.0 1.0 
14 Precious stones and metals  2.2 1.6 1.6 2.1 1.9 
15 Base metals and articles thereof  7.8 8.0 7.6 7.8 8.9  
72 Iron and steel  4.0 4.1 3.7 3.6 4.6  
7208 Iron or non -alloy steel; flat -rolled products 
of a width of 600  mm or more, hot -rolled, not 
clad, plated or coated  1.1 1.1 1.0 1.0 1.4 
 
74 Articles of iron and steel  1.4 1.4 1.5 1.4 1.3  
74 Copper and articles thereof  1.1 1.2 1.1 1.5 1.7 
16 Machinery, electrical equipment  34.9 34.9 34.0 35.0 35.2  
84 Machinery and mechanical appliances, parts 
thereof  19.8 20.0 19.4 19.0 19.5 
 
8429 Bulldozers, graders, levellers, scrapers, 
self-propelled  1.3 1.4 1.4 1.2 1.5 
 
8486 Machines for the manufacture of 
semiconductor boules or wafers, semiconductor 
devices, electronic integrated circuits or flat panel 
displays  3.3 3.3 3.2 3.7 4.0 
 
85 Electrical and electronic equipment  15.1 14.8 14.6 16.0 15.7  
8541 Diodes, transistors, similar semiconductor 
devices  1.3 1.2 1.2 1.4 1.4 
 
8542 Electronic integrated circuits  3.8 3.8 3.9 4.5 4.5 
17 Transport equipment  23.5 23.4 23.8 21.4 19.8  
87 Vehicles other than railway, tramway  20.9 20.9 21.1 19.1 18.2  
8703 Motor vehicles for the transport of less than 
10 persons  13.4 13.4 13.9 12.6 11.3 
 
8704 Motor vehicles for the transport of goods  1.3 1.2 1.2 1.0 1.3  
8708 Motor vehicles, parts and accessories thereof  4.9 4.9 4.6 4.2 4.3  
89 Ships, boats and other floating structures  1.8 1.7 2.0 1.7 1.3 
18 Precision equipment  5.9 5.8 5.8 6.0 5.9  
90 Optical, photo, technical, medical, apparatus  5.7 5.6 5.5 5.8 5.7 
19 Arms and ammunition  0.02 0.03 0.02 0.02 0.03 
20 Miscellaneous manufactured articles  1.0 1.1 1.1 1.2 1.1 
21 Works of art, etc.  0.0 0.1 0.1 0.0 0.0 
Other   
6.3 6.2 6.4 6.4 6.7 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 438 • Japan  
 
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 Table A1. 2 Merchandise imports by HS section and major HS chapter/subheading, 
2017 -21 
HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
Total imports (USD billion)  671.9  748.5  721.1  635.4  772.3    
(% of total imports)  
01 Live animals and products  3.6 3.4 3.5 3.6 3.2  
02 Meat and edible meat offals  1.5 1.4 1.5 1.6 1.4  
03 Fish. Crustaceans, molluscs, aquatic invertebrates 
n.e.s.  1.7 1.6 1.6 1.6 1.4 
02 Vegetable products  2.9 2.7 2.8 3.1 3.0 
03 Fats and oils  0.2 0.2 0.2 0.2 0.2 
04 Prepared food, beverages and tobacco  3.7 3.5 3.7 4.1 3.5 
05 Mineral products  24.4 26.5 24.9 20.2 24.7  
26 Ores, slag and ash  3.1 2.9 3.1 3.4 4.5  
2601 Iron ores and concentrates; including roasted 
iron pyrites  1.4 1.2 1.5 1.5 2.3 
 
 2603 Copper ores and concentrates  1.2 1.3 1.1 1.5 1.7  
27 Mineral fuels and oils  21.0 23.4 21.6 16.6 20.0  
2701 Coal; briquettes, ovoids and similar solid fuels 
manufacture from coal  3.4 3.4 3.2 2.5 3.3 
 
2709 Petroleum oils and oils obtained from 
bituminous minerals; crude  9.5 10.8 10.1 6.8 8.2 
 
2710 Petroleum oils and oils from bituminous 
minerals, not crude  1.9 2.4 1.8 1.7 2.4 
 
2711 Petroleum gases and other gaseous 
hydrocarbons  6.0 6.6 6.2 5.4 5.9 
06 Chemicals and products thereof  8.7 8.9 9.0 10.2 10.1  
29 Organic chemicals  2.4 2.4 2.2 2.5 2.2  
30 Pharmaceutical products  3.3 3.4 3.8 4.5 4.8  
3002 Human blood, antisera, other blood fractions  0.9 1.0 1.3 1.6 2.3  
3004 Medicaments therapeutic or prophylactic use  2.2 2.2 2.3 2.7 2.3 
07 Plastics and rubber  2.9 2.9 2.9 3.0 3.0  
39 Plastics and articles thereof  2.2 2.3 2.2 2.4 2.2 
08 Raw hides and skins; leather, furskins and articles thereof  0.9 0.9 0.9 0.8 0.7 
09 Wood, cork, straw  1.6 1.5 1.5 1.4 1.5  
Wood and articles of wood  1.5 1.5 1.5 1.4 1.5 
10 Pulp of wood; paper and paperboard  0.8 0.7 0.8 0.8 0.7 
11 Textiles and textile articles  5.2 5.0 5.2 5.7 4.3  
61 Articles of apparel and clothing accessories, knitted 
or crocheted  1.9 1.8 1.9 1.9 1.6 
 
62 Articles of apparel and clothing accessories, not 
knitted or crocheted  2.0 2.0 2.0 1.9 1.5 
12 Footwear, headgear, etc.  0.9 0.9 0.9 0.8 0.7 
13 Articles of stone, plaster, cement  0.7 0.7 0.7 0.7 0.7 
14 Precious stones and metals  1.7 1.7 1.8 2.5 3.1 
15 Base metals and articles thereof  4.8 5.0 4.8 4.4 5.0  
72 Iron and steel  1.1 1.1 1.1 0.9 1.1  
76 Aluminium and articles thereof  1.2 1.2 1.1 1.0 1.2 
16 Machinery, electrical equipment  24.3 23.2 23.5 25.8 23.9  
84 Machinery and mechanical appliances, parts thereof  9.7 9.7 9.8 10.6 9.2  
8471 Automatic data processing machines and units 
thereof  2.2 2.1 2.4 3.1 2.4 
 
85 Electrical machineries and parts thereof  14.5 13.5 13.7 15.2 14.7  
8517 Telephone sets, including telephones for 
cellular networks  3.9 3.5 3.4 3.9 3.7 
 
 8542 Electronic integrated circuits  2.9 2.7 2.6 3.0 3.3 
17 Transport equipment  4.3 4.3 4.6 3.9 3.9  
87 Vehicles other than railway, tramway  3.3 3.3 3.3 3.1 3.0 
18 Precision equipment  4.3 4.2 4.5 4.6 4.1  
90 Optical, photo, technical, medical, (..) apparatus  3.8 3.7 3.9 4.1 3.7 
19 Arms and ammunition  0.01 0.02 0.02 0.0 0.0 WT/TPR/S/ 438 • Japan  
 
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 HS Section/chapters/subheadings  2017  2018  2019  2020  2021  
20 Miscellaneous manufactured articles  2.4 2.1 2.2 2.4 2.2  
94 Furniture; bedding; lamps; illuminated signs; 
prefabricated buildings  1.2 1.1 1.2 1.3 1.2 
21 Works of art, etc.  0.08 0.08 0.08 0.09 0.078  
Other   
1.68 1.57 1.65 1.72 1.55 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
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 Table A1. 3 Merchandise exports by destination, 2017 -21 
  2017  2018  2019  2020  2021  
Total exports (USD billion)  698.1  738.2  705.7  641.3  757.1   
(% of total exports)  
Americas  24.7 24.4 25.3 22.9 22.7 
 United  States  19.4 19.1 19.9 18.5 18.0 
 Other America  5.4 5.3 5.4 4.4 4.7 
  Mexico  1.6 1.6 1.5 1.3 1.4 
  Canada  1.4 1.3 1.3 1.1 1.1 
  Panama  0.8 0.8 0.9 0.7 0.6 
  Brazil  0.5 0.5 0.5 0.5 0.6 
Europe  12.5 12.5 12.8 12.4 11.8 
 EU-27 9.1 9.5 9.7 9.2 9.2 
  Germany  2.7 2.8 2.9 2.7 2.7 
  Netherlands  1.8 1.7 1.7 1.7 1.7 
  Belgium  0.8 0.9 1.1 1.0 1.0 
  France  0.9 1.0 1.0 0.9 0.9 
  Italy 0.7 0.6 0.7 0.6 0.7 
 EFTA 0.9 0.6 0.7 0.9 0.7 
  Switzerland  0.7 0.5 0.6 0.8 0.6 
 Other Europe  2.5 2.4 2.4 2.2 1.9 
  United  Kingdom  2.0 1.9 2.0 1.7 1.4 
  Russian  Federation  0.9 1.0 1.0 0.9 1.0 
Africa  1.1 1.1 1.3 1.2 1.3 
Middle East  3.0 3.0 3.1 2.6 2.5 
  United Arab Emirates  1.0 1.1 1.0 0.9 0.9 
  Saudi Arabia, Kingdom of  0.5 0.6 0.7 0.7 0.6 
Asia 57.8 57.9 56.4 59.8 60.6 
 China  19.0 19.5 19.1 22.0 21.6 
 Other Asia  38.7 38.3 37.3 37.8 39.0 
  Chinese  Taipei  5.8 5.7 6.1 6.9 7.2 
  Korea, Republic of  7.6 7.1 6.6 7.0 6.9 
  Hong Kong, China  5.1 4.7 4.8 5.0 4.7 
  Thailand  4.2 4.4 4.3 4.0 4.4 
  Singapore  3.2 3.2 2.9 2.8 2.6 
  Viet Nam 2.2 2.2 2.3 2.7 2.5 
  Malaysia  1.8 1.9 1.9 2.0 2.1 
  Australia  2.3 2.3 2.1 1.9 2.0 
  Indonesia  1.9 2.1 2.0 1.4 1.8 
  India 1.3 1.5 1.6 1.4 1.7 
  Philippines  1.6 1.5 1.5 1.4 1.5 
Memorandum:       
EU-28 11.1 11.3 11.6 10.9 10.6 
APEC 78.8 78.4 77.8 79.5 79.6 
ASEAN  15.2 15.5 15.1 14.4 15.0 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
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 Table A1. 4 Merchandise imports by origin, 2017 -21 
  2017  2018  2019  2020  2021  
Total imports (USD billion)  671.9  748.5  721.1  635.4  772.3   
(% of total imports)  
Americas  16.5 16.4 16.7 17.0 16.6 
 United  States  11.0 11.2 11.3 11.3 10.7 
 Other America  5.5 5.2 5.4 5.7 5.9 
  Canada  1.6 1.6 1.6 1.7 1.8 
  Brazil  1.1 0.9 1.1 1.2 1.3 
  Chile 1.0 1.0 0.9 1.1 1.0 
Europe  13.3 13.3 14.1 14.1 13.6 
 EU-27 10.6 10.7 11.2 11.4 11.1 
  Germany  3.5 3.5 3.5 3.3 3.1 
  France  1.5 1.5 1.7 1.5 1.5 
  Italy 1.5 1.5 1.6 1.6 1.5 
  Ireland  0.7 0.9 1.0 1.0 0.9 
  Belgium  0.4 0.4 0.4 0.5 0.8 
 EFTA 1.5 1.3 1.4 1.4 1.3 
  Switzerland  1.2 1.0 1.1 1.2 1.1 
 Other Europe  1.3 1.4 1.4 1.3 1.2 
  United  Kingdom  1.1 1.1 1.1 1.0 0.9 
  Russian  Federation  2.1 2.1 2.0 1.7 1.8 
Africa  1.2 1.2 1.2 1.4 1.8 
  South  Africa  0.7 0.7 0.7 0.9 1.3 
Middle East  10.9 12.5 11.3 8.2 10.0 
  Saudi Arabia, Kingdom of  4.1 4.5 3.8 2.9 3.6 
  United Arab Emirates  3.1 3.7 3.6 2.6 3.5 
  Qatar  1.6 2.0 1.8 1.4 1.5 
  Kuwait, State of  0.9 1.0 1.0 0.7 0.9 
Asia 55.7 54.3 54.7 57.5 56.0 
 China  24.5 23.2 23.5 25.8 24.0 
 Other Asia  31.2 31.1 31.2 31.7 32.0 
  Australia  5.8 6.1 6.3 5.6 6.8 
  Chinese  Taipei  3.8 3.6 3.7 4.2 4.3 
  Korea, Republic of  4.2 4.3 4.1 4.2 4.2 
  Thailand  3.4 3.4 3.5 3.7 3.4 
  Viet Nam 2.8 2.8 3.1 3.5 3.0 
  Malaysia  2.9 2.5 2.5 2.5 2.6 
  Indonesia  3.0 2.9 2.5 2.4 2.5 
  Philippines  1.5 1.4 1.5 1.5 1.4 
  Singapore  1.3 1.3 1.1 1.3 1.1 
Memorandum:       
EU-28 11.6 11.8 12.4 12.4 12.0 
APEC 71.0 69.7 70.1 72.9 71.0 
ASEAN  15.3 15.0 15.0 15.7 14.7 
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 438 • Japan  
 
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 Table A3. 1 Taxation rates, April 2022  
Tax  Rates (JPY)  
National taxes  
Income Tax  Progressive rates up to a maximum of 45%  
Corporation Tax  29.74%  
Inheritance Tax/Gift Tax  Applied on properties and gifts with progressive rates up to a maximum 
of 55%  
Consumption Tax  10 % (standard tax rate), 8% (reduced tax rate)   
Liquor Tax  JPY 20,000/kl -JPY 370,000/kl. In some cases, there is a JPY  10,000 
additional amount of tax per 1% o f alcohol  
Tobacco taxesa JPY 7,622/1,000 cigarettes  
Gasoline Tax and Local Gasoline 
Tax JPY 53,800/kl  
Liquefied Petroleum Gas Tax  JPY 17.50/kg  
Aviation Fuel Tax  JPY 13,000/kl  
Petroleum and Coal Tax  Crude petroleum or petroleum products JPY 2,800/kl  
Natural gas or petroleum gas JPY  1,860/tonne  
Coal: JPY  1,370/tonne  
Promotion of Power -resources 
Development Tax  JPY 375 per 1,000  kw/h of electric power sold  
Motor Vehicle Tonnage Tax  Applied to passenger cars of less than 13 years. 
JPY 2,500/year -JPY 4,100/year for every half tonne  
International Tourist Tax  JPY 1,000/departure for overseas  
Registration and Licence Tax  Sale of real property – 2% of value  
Acquisition of pledge/mortgage for real property – 0.4% of loan amount  
Incorporation of stock company – 0.7% of capital amount (applied to 
values over JPY  150,000)  
Registration of capital increase regarding stock companies – 0.7% 
(applied to values over JPY  30,000)  
New licence registration for bank businesses and financial in struments 
business operators – JPY 150,000/licence  
New licence registration for lawyers, doctors and licensed tax 
accountants – JPY 60,000/licence  
Stamp Tax  JPY 200-JPY 480,000. Applies to deeds of content concerning transfer 
of real property; deeds of co ntracts concerning contracting work; 
promissory notes and bills of exchange; and share certificates, bond 
certificates etc.  
Prefectural taxes  
Inhabitant Tax on Corporations  Per capita rate: JPY  20,000 -JPY 800,000 (according to the amount of 
capital); Corporation tax rate: 1% of the amount of Corporation tax  
Inhabitant Tax on Individuals  Per capita rate (JPY  1,500); income rate 4% of total sum of ordinary 
income in the previous calendar year; interest rate 5% on interest 
amount; stock dividend rate: 5% of specified dividends received; 
capital gain rate: 5% of amount of capital gain from special stocks  
Local Enterprise Tax  Enterprise (its capital is JPY  100 million or less): 7% of net income  
Enterprise (its capital exceeds JPY  100 million): 1% of net income; 
1.2% of value added; 0.5% of the capital amount  
Electricity, gas supply, and insurance companies: 1% of gross receipts  
Real Property Acquisition Tax  4% of assessed value of acquired real estate (3% for residence and 
land) 
Prefectur al Tobacco Tax  JPY 930 per 1,000 cigarettes  
Golf Links Tax  JPY 800 per person per day  
Automobile Acquisition Tax  2%-3% of the acquisition value of diesel - or petrol -powered cars  
Delivered Diesel Oil Tax  JPY 32,100/kl  
Automobile Tax  Buses: JPY 17,500 -JPY 49,000. Passenger cars: JPY  34,500 -JPY 11,000 
Three -wheeled small cars: JPY  6,000; trucks: JPY  25,500  
Mine Lot Tax  Mine lot with mining right not for placer mining: JPY  200-JPY 400 per 
hectare/year. Mine lot with mining right for placer min ing: Riverbed 
JPY 600 per 1,000  m of extension/year; Non -riverbed JPY  200 per 
hectare/year 
Hunting Tax  JPY 5,500 -16,500  
Water Utility and Land Profit Tax  Voluntary tax rate based on price or area of land or house  
The tax rate is determined by the ordina nce by the taxation 
organization according to the price and area of the land and house  WT/TPR/S/ 438 • Japan  
 
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 Tax  Rates (JPY)  
Municipal taxes  
Inhabitants Tax on Corporations  Per capita rate: JPY  50,000 -JPY 3,000,000 (according to the amount of 
capital and the number of employees); corporation tax rate: 1% of the 
amount of corporation tax  
Inhabitants Tax on Individuals  Per capita rate (JPY  3,500); income rate: 6% of total sum of ordinary 
income in the previous calendar year  
Fixed Property Tax  1.4% of price registered in the fixed p roperty tax ledger  
Light Motor Vehicle Tax  Rates vary according to category and cylinder volume  
Municipal Tobacco Tax  JPY 5,692/1,000 cigarettes  
Mine Production Tax  1% of mineral price  
Special Land Possession Tax  3% of land acquisition price on acquisition; 1.4% of land acquisition 
price on possession  
Bathing Tax  JPY 150 per person per day  
Establishment Tax  JPY 600/m  
City Planning Tax  0.3% of price registered in the fixed assets tax ledger  
Water Utility and Land Profit Tax  Voluntary tax rate based on price or area of land or house  
Common Facilities Tax  Voluntary tax rate the municipality establishes through regulations 
taking into consideration the profit situation of common facilities  
Residential Land Development 
Tax Voluntary tax rat e based on area of residential land  
National Health Insurance Tax  Voluntary tax rate  
a Comprises a tobacco tax and a special tobacco tax.  
Source:  Information provided by the authorities; and MOF, Learning More About Taxes . Viewed at: 
https://www.mof.go.jp/english/tax_policy/publication/tax008/index.htm . 
  WT/TPR/S/ 438 • Japan  
 
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 Table A3. 2 Central government and IAA procurement, by good and by origin, 2019 -20 
No. Products  2019  2020  
Total value  
(JPY 100 million)  Foreign 
share  
(%) Total value  
(JPY 100 million)  Foreign 
share  
(%) 
1 Products from agriculture, 
and from agricultural and 
food processing  19.4 30.8 17.2 42.9 
2 Mineral products  346.4  15.2 469.4  8.9 
3 Products of the chemical 
and allied industries  38.3 1.6 37.7 6.4 
4 Medicinal and 
pharmaceutical products  2,526.9  5.6 2,706.4  62.3 
5 Artificial resins; rubber, 
raw hides and skins; 
leather; and articles 
thereof  15.7 2.4 12.3 4.3 
6 Wood and articles of 
wood; paper -making 
material; paper and 
paperboard, and articles 
thereof  244.6  0.0 173.9  0.0 
7 Textiles and textile 
articles; thread for 
spinning and weaving; 
and articles thereof  58.0 3.7 55.2 1.1 
8 Articles of stone, of 
cement and of similar 
materials; ceramic 
products; glass and 
glassware; and articles 
thereof  31.6 0.0 26.5 0.0 
9 Iron and steel, and articles 
thereof  24.8 0.0 35.4 0.5 
10 Non-ferrous metals, and 
articles thereof  58.3 7.7 110.2  5.4 
11 Power -generating 
machinery and equipment  52.4 9.0 111.8  3.8 
12 Machinery specialized for 
particular industries  81.9 2.1 100.2  7.1 
13 General industrial 
machinery and equipment  187.5  6.6 91.3 3.2 
14 Office machines and 
automatic data processing 
equipment  3,616.7  2.8 2,917.1  3.1 
15 Telecommunications and 
sound recording and 
reproducing apparatus 
and equipment  778.8  0.9 720.8  2.0 
16 Electrical machinery, 
apparatus and appliances, 
and electrical parts thereof  444.3  4.3 345.2  2.2 
17 Road vehicles  690.3  2.7 646.8  1.6 
18 Railway vehicles and 
associated equipment  43.7 30.5 0.0 - 
19 Aircraft and associated 
equipment  113.3  64.8 211.6  63.3 
20 Ships, boats and floating 
structures  42.0 0.0 174.5  0.0 
21 Sanitary, plumbing, and 
heating equipment  12.3 0.0 20.5 2.0 
22 Medical, dental, surgical 
and veterinary equipment  782.9  34.5 777.1  28.5 
23 Furniture and parts 
thereof  51.0 0.0 65.3 0.0 
24 Scientific and controlling 
instruments and 
apparatus  591.6  21.0 733.3  26.3 WT/TPR/S/ 438 • Japan  
 
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 No. Products  2019  2020  
Total value  
(JPY 100 million)  Foreign 
share  
(%) Total value  
(JPY 100 million)  Foreign 
share  
(%) 
25 Photographic apparatus 
and equipment, optical 
goods, and clocks  38.8 2.4 44.2 8.2 
26 Miscellaneous articles  2,107.4  5.4 2,116.8  5.6 
  Total  12,998.9  7.4 12,714.8  20.1 
Note:  The survey covered procurement of goods and services above the threshold of SDR 100,000 and 
excluded procurement of construction services and procurement by sub -central government entities.  
Source:  2019 and 2020 Government Procurement Results . Viewed at:  
https://www.kantei.go.jp/jp/kanbou/02tyoutatu/dai2/dai2honbun.pdf  and 
 https://www.cas.go.jp/jp/seisa ku/chotatsu/dai8/siryou2.pdf . 
  WT/TPR/S/ 438 • Japan  
 
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 Table A3. 3 Central government and IAA procurement, by service and by origin, 2019 -20 
No. Services  2019  2020  
Total value 
(JPY 100 million)  Foreign 
share (%)  Total value 
(JPY 100 million)  Foreign  
share 
(%) 
1 Maintenance and repair of 
motor vehicles  6.7 0.0 26.8 12.2 
2 Maintenance and repair of 
motorcycles and 
snowmobiles  0.0 0.0 0.0 0.0 
3 Other land transport 
services (except mail 
transportation)  112.3  0.5 101.3  0.0 
4 Rental services of sea -
going vessels with 
operator  7.7 0.0 0.4 0.0 
5 Rental services of non -
sea-going vessels with 
operator  3.1 0.0 1.6 0.0 
6 Air transport (except mail 
transportation)  23.0 16.7 21.7 14.6 
7 Freight transport agencies  52.8 4.1 72.3 0.0 
8 Courier services  4.7 6.1 2.1 8.4 
9 Telecommunication 
services  169.8  3.9 84.7 14.8 
10 Computer and related 
services  9,460.8  3.9 11,171.9  4.9 
11 Market research and public 
opinion polling  69.6 2.3 116.7  1.2 
12 Advertising services  808.6  7.8 460.9  0.0 
13 Armoured car services  18.8 0.0 268.7  0.0 
14 Building cleaning services  444.8  0.0 930.3  0.0 
15 Publishing and printing 
services  249.2  0.1 219.2  0.1 
16 Repair services incidental 
to metal products, 
machinery and equipment  147.1  11.6 134.2  15.1 
17 Sewage and refuse 
disposal, sanitation and 
other environmental 
protection  1,236.1  0.0 766.9  0.5 
18 Repair services of personal 
and household goods  0.0 0.0 0.0 0.0 
19 Food serving services  1.8 0.0 1.3 0.0 
20 Beverage serving services  0.0 0.0 0.0 0.0 
21 Leasing or rental services 
concerning agricultural 
machinery and equipment 
without operator  0.0 - 0.4 0.0 
22 Leasing or rental services 
concerning furniture and 
other household 
appliances  1.0 0.0 2.5 0.0 
23 Leasing or rental services 
concerning pleasure and 
leisure equipment  0.7 0.0 0.0 0.0 
24 Leasing or rental services 
concerning other personal 
or household goods  65.4 0.0 0.3 0.0 
25 Management consulting 
services  0.5 0.0 0.1 0.0 
26 Services related to 
management consulting 
(except 86602 Arbitration 
and conciliation services)  0.0 0.0 0.3 0.0 
27 Packaging services  9.9 0.0 4.8 0.0 WT/TPR/S/ 438 • Japan  
 
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 No. Services  2019  2020  
Total value 
(JPY 100 million)  Foreign 
share (%)  Total value 
(JPY 100 million)  Foreign  
share 
(%) 
28 Services incidental to 
forestry and logging, 
including forest 
management, and 
publishing and printing 
services  0.0 0.0 0.0 0.0 
29 Primary education services  1.4 0.0 0.1 0.0 
30 Secondary education 
services  0.0 0.0 0.0 0.0 
31 Higher education services  0.0 0.0 0.0 0.0 
32 Adult education services  2.4 0.0 1.6 0.0 
33 Motion picture and video 
tape production and 
distribution  services  0.7 0.0 0.3 0.0 
34 Other  319.7  0.0 306.8  0.2 
 Total  13,218.5  3.5 14,698.1  4.0 
Note:  The survey covered procurement of goods and services above the threshold of SDR 100,000 and 
excluded procurement of construction services and procurement by sub -central government entities.  
Source:  2019 and 2020 Government Procurement Results . Viewed at:  
https://www.kantei.go.jp/jp/kanbou/02tyoutatu/dai2/dai2honbun.pdf  and 
 https://www.cas.go.jp/jp/seisa ku/chotatsu/dai8/siryou2.pdf . 
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 Table A3. 4 Summary of laws protecting IPRs, 2022  
Form  Main legislation  Coverage  Duration  
Patents  
 Patent Act  
(Last amended: 2021)  Any invention of a 
product/method that is 
industrially applicable, novel 
compared with the prior art 
base, and characterized by the 
highly advanced creation of 
technical ideas utilizing the laws 
of nature  20 years from the filing date 
of the patent application 
(extendable to a maximum of 
25 years upon request)  
New plant 
varieties  
 Plant Variety Protection 
and Seed Act  
(Last amended: 2021)  Any plant variety of agricultural, 
forestry or aquatic plant, 
meeting the following 
requirements:  
(i) distinctness;  
(ii) uniformity;  
(iii) stability;  
(iv) novelty; and  
(v) suitability of denomination  Duration of breeder's rights 
of plants (except perennial 
plants) is 25  years, while that 
of perennial plants is 
30 years from the date of 
variety registration  
Utility models  
 Utility Model Act  
(Last amended: 2021)  Any creation of a device that is 
related to the shape or 
structure of an article or 
combination of articles, and is 
industrially applicable  10 years from the filing date 
of the application  
Industrial 
designs  
 Design Act 
(Last amended: 2021)  Any design that is industrially 
applicable; shapes, patterns, 
colours, or any combination of 
an article or a building, or a 
graphic image design (including 
part of it), which is aesthetically 
pleasing in its visual 
presentation  25 years from the filing date 
of application  
Trademarks  
 Trademark Act  
(Last amended: 2021)  Any character, figure, sign, 
three -dimensional shape, 
colour, or any combination of 
them, or sounds; used by a 
business entity  in connection 
with its goods or services  10 years from the date of 
registration (continuous use 
can be obtained if an 
application is renewed)  
Geographical 
indications  
 Act on Protection of the 
Names of Specific 
Agricultural, Forestry 
and Fishery Products 
and Foodstuffs  
(Last amended: 2019)  Agriculture, forestry and 
fisheries products and 
foodstuffs, meeting the 
following requirements: 
(i) products produced in a 
specific place, region or 
country; and (ii)  products for 
which quality, reputation or 
other given characteristic is 
essentially attributable to the 
place of production  Indefinite (registrations of 
GIs are effective as long as 
the prescribed requirements 
are met)  
Trade secrets  
 Unfair Competition 
Prevention Act  
(Last amended: 2018)  A trade secret: a production 
method, sales method, or any 
other technical or operational 
information useful for business 
activities that is controlled as a 
secret and is not publicly 
known.  
Data for limited provision: 
technical or business 
informatio n accumulated in a 
reasonable amount, managed 
by electronic or magnetic 
means, and provided to specific 
persons on a regular basis   WT/TPR/S/ 438 • Japan  
 
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 Form  Main legislation  Coverage  Duration  
Copyright and 
related rights  
 Copyright Act 
(Last amended: 2022)  Any work: a production in the 
literary, academic, artistic or 
musical domain, in which 
thoughts or sentiments are 
creatively expressed.  
Any performance: acting 
dramatically, dancing, giving a 
musical performance, singing, 
giving a speech, giving a 
recitation, or by any other 
means for acting of a work.  
Any phonogram: the fixation of 
sounds on a material object, 
such as a phonograph disc or 
recording tape.  
Any broadcasting/cablecasting: 
the transmission to the public of 
wireless/wired communications, 
with the objective of allowing 
the public to simultaneous ly 
receive transmissions of the 
same content  A work: author's life plus 
70 years from the beginning 
of the calendar year after the 
year in which the author dies  
A performance: 70 years 
from the beginning of the 
calendar year after the year 
in which the per formance 
takes place  
A phonogram: 70 years from 
the beginning of the calendar 
year after the year in which 
the phonogram is published  
A broadcasting/cablecasting: 
70 years from the beginning 
of the calendar year after the 
year in which the 
broadcasting/cab lecasting 
takes place  
An anonymous or 
pseudonymous work: 
70 years after the work is 
made public  
A work whose authorship is 
attributed to a corporation or 
other organization: 70 years 
after the work is made public  
A cinematographic work: 
70 years after the work is 
made public  
Circuit layout 
of 
semiconductor 
integrated 
circuits  Act on the Circuit 
Layout of 
Semiconductor 
Integrated Circuits 
(Last amended:2022)  Any layout design of circuitry 
elements and the lead wires 
connecting such elements in 
semiconductor integrated 
circuits  10 years from the date of 
registration  
Source:  Information provided by the authorities.  
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 Table  A4.1 Special safeguards, FY2019 -FY2021  
HS Description  Type of 
SSG Date or period 
of application  
FY2019  
040120190  Milk and cream, not concentrated nor containing 
added sugar or other sweetening matter.  
 - Of a fat content, by weight, exceeding 1% but 
not exceeding 6%: Sterilized, frozen or 
preserved  Volume  01/11/2019 to 
31/03/2020  
040140190, 040150119,  
040150129  Milk and cream, not concentrated nor containing 
added sugar or other sweetening matter.  
- Of a fat content, by weight, exceeding 6%: 
Sterilized, frozen or preserved; other cream of a 
fat content, by weight, of 13% or more (other 
than sterilized, frozen or preserved)  Volume  01/02/2020 to 
31/03/2020  
040299129, 040299290  Condensed milk  Volume  01/11/2019 to 
31/03/2020  
040310190  Yogurt  
－Frozen, preserved or containing added sugar 
or other sweetening matter, flavoring, fruits or 
nuts (excluding frozen yogurt)  Volume  01/09/2019 to 
31/03/2020  
040510129  Butter  
- Of a fat content, by weight, not exceeding 85%  Price 01/08/2019  
040510129, 040510229,  
040520090, 040590190,  
040590229  Butter and other fats and oils derived from milk; 
dairy spreads  Volume  01/01/2020 to 
31/03/2020  
100630090  Semi-milled or wholly milled rice, whether or not 
polished or glazed  Price 01/10/2019, 
21/10/2019, 
24/12/2019  
110100200  Wheat or meslin flour  Price 19/09/2019  
110311090  Cereal groats and meal, of wheat  Price 26/07/2019, 
21/10/2019  
110812099  Maize (corn) starch  Volume  01/10/2019 to 
31/03/2020  
110819098  Other starches (excluding Sago starch)  Price 11/09/2019, 
12/09/2019  
110820090  Inulin  Volume  
 
Price 01/01/2020 to 
31/03/2020  
05/04/2019, 
16/04/2019, 
24/06/2019, 
29/08/2019, 
09/10/2019, 
16/10/2019, 
17/12/2019  
190190179  Food preparatio ns, containing more than 85% by 
weight of flour, groats, meal and pellets of rice, 
wheat, triticale or barley, starch, or any 
combination thereof, excluding cake -mixes and a 
kind used as food suitable for infants or young 
children or dietetic purpose:  
- Mostly containing starch (excluding containing 
wheat starch)  Price 01/08/2019  
190120159, 190190179  Food preparations, containing more than 85% by 
weight of flour, groats, meal and pellets of rice, 
wheat, triticale or barley, starch, or any 
combination thereof, excluding cake -mixes and a 
kind used as food suitable for infants or young 
children or dietetic purpose:  
- Mostly containing starch (excluding containing 
wheat starch)    
190410212  Prepared foods containing not less than 50% by 
weight of those obtained by merely swelling or 
roasting of rice, wheat, triticale or barley:  
- Of rice    WT/TPR/S/ 438 • Japan  
 
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 HS Description  Type of 
SSG Date or period 
of application  
210690129  Preparations containing not less than 30% of 
natural milk constituents by weight, calculated 
on the dry matter:  
 - Of a milkfat content, by weight, more than 
30%   
FY2020  
040140190, 040150119,  
040150129  Milk and cream, not concentrated nor containing 
added sugar or other sweetening matter.  
- Of a fat content, by weight, exceeding 6%: 
Sterilized, frozen or preserve d; other cream of a 
fat content, by weight, of 13% or more (other 
than sterilized, frozen or preserved)  Volume  01/03/2021 to 
31/03/2021  
040221119  Milk powder, not containing added sugar or other 
sweetening matter  
- Of a fat content, by weight, exceeding 5% but 
not exceeding 30%  Price 20/01/2021  
040221129  Milk powder, not containing added sugar or other 
sweetening matter  
- Of a fat content, by weight, exceeding 30%  Price 01/06/2020  
040291290  Evaporated milk  Price 20/01/2021  
040299129  Condensed milk  Price 09/12/2020  
100630090  Rice (semi -milled or wholly milled rice, whether 
or not polished or glazed)  Price 14/07/2020, 
20/10/2020  
110100200  Wheat or meslin flour  Price 19/11/2020  
110290390  Rice flour  Price 20/10/2020, 
19/03/2021  
110812099  Maize (corn) starch  Volume  01/11/2020 to 
31/03/2021  
110819098  Other starches (excluding Sago starch)  Price 10/07/2020, 
24/08/2020, 
20/11/2020, 
05/03/2021  
110820090  Inulin  Price 18/08/2020, 
31/03/2021  
190190179  Food preparations of flour, meal, or starch, 
which contain more than 85% by weight of flour, 
groats, meal and pellets of rice, wheat, triticale 
or barley, starch, or any combination thereof, 
excluding cake -mixes and a kind used as infant 
food or dietetic purpos e 
- Mostly containing starch (excluding wheat 
starch)  Price  29/07/2020, 
11/08/2020, 
18/09/2020  
190120159, 190190179  Food preparations of flour, meal, or starch, 
which contain more than 85% by weight of flour, 
groats, meal and pellets of rice, wheat, trit icale 
or barley, starch, or any combination thereof, 
excluding cake -mixes and a kind used as food 
suitable for infants or young children or dietetic 
purpose  
- Mostly containing starch (excluding wheat 
starch)  Volume  01/02/2021 to 
31/03/2021  
FY2021  
040140 190, 040150119,  
040150129  Milk and cream, not concentrated nor containing 
added sugar or other sweetening matter.  
- Of a fat content, by weight, exceeding 6%: 
Sterilized, frozen or preserved; other cream of a 
fat content, by weight, of 13% or more (other 
than sterilized, frozen or preserved)  Volume  21/10/2021 to 
31/03/2022  
071310229  Peas (Pisum sativum)  Price 19/04/2021  
071332090  Small red (Adzuki) beans (Phaseolus or Vigna 
angularis)  Price 19/04/2021  
071333229  Kidney beans, including white pea beans 
(Phaseolus vulgaris)  Price 11/10/2021  WT/TPR/S/ 438 • Japan  
 
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 HS Description  Type of 
SSG Date or period 
of application  
071339227  Beans (Vigna spp., Phaseolus spp.) other than 
beans of the species Vigna mungo (L.) Hepper or 
Vigna radiata (L.) Wilczek, small red (Adzuki) 
beans and kidney beans, Bambara beans (Vinga 
subterranea or Voandzeia subterranea), Cow 
peas (Vinga unguiculata)  Price 08/07/2021, 
18/08/2021, 
19/08/2021,  
19/08/2021  
071390229  Beans other than Peas (Pisum sativum), 
Chickpeas (garbanzos), beans of the species 
Vigna spp., Phaseolus spp., Lentils, Broa d beans 
(Vicia faba var. major) and horse beans (Vicia 
faba var. equina, Vicia faba var. minor), Pigeon 
peas (Cajanus cajan ） Price 19/04/2021  
100630090  Rice (semi -milled or wholly milled rice, whether 
or not polished or glazed)  Price 05/04/2021  
110100200  Wheat or meslin flour  Price 11/10/2021  
110819098  Other starches (excluding Sago starch)  Price 24/05/2021, 
07/10/2021, 
20/10/2021, 
22/12/2021, 
09/02/2022  
110820090  Inulin  Price 06/05/2021, 
25/01/2022, 
25/01/2022  
190190179  Food preparations of flour, meal, or starch, 
which contain more than 85% by weight of flour, 
groats, meal and pellets of rice, wheat, triticale 
or barley, starch, or any combination thereof, 
excluding cake -mixes and a kind used as infant 
food or dietetic purpos e 
- Mostly containing starch (excluding wheat 
starch)  Price 28/01/2022, 
23/03/2022  
210690119  Food preparations containing not less than 30% 
of natural milk constituents by weight, calculated 
on the dry matter  
 - Of a milkfat content, by weight, not exceeding 
30% Price 19/07/2021  
Source:  WTO documents G/AG/N/JPN/251, 10  June 2020; G/AG/N/JPN/251/Corr.1, 23  July 2020; 
G/AG/N/JPN/260, 26  April 2021; and G/AG/N/JPN/274, 28  April 2022.  
  WT/TPR/S/ 438 • Japan  
 
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 Table  A4.2 Tariff quota fill ratio, FY2020  
Description of products  No. of tariff lines  Tariff 
quota 
quantity 
(MT)  In-quota 
imports  Fill rate  
% 
Skimmed milk powder (for 
school lunches)  040210, 040221  7,264  467 6.4 
Skimmed milk powder (for 
other purposes)  040210, 040221, 040229  74,973  23,538  31.4 
Milk powder  040221, 040229  0.3 .. .. 
Evaporated milk  040291  1,500  1,395  93.0 
Condensed milk  040299  13 .. .. 
Whey and modified whey (for 
feeding purposes)  040410  45,000  33,635  74.7 
Prepared whey (for infant 
formula)  040410, 040490  25,000  5,027  20.1 
Butter and butteroil  040510, 040590  581 109 18.8 
Mineral concentrated whey  040410  14,000  3,924  28.0 
Prepared edible fat  210690  18,977  14,867  78.3 
Other dairy products for 
general use  040110, 040120, 040140, 
040150, 040310, 040390, 
040490, 180620, 180690, 
190110, 190120, 190190,  
210112, 210120, 210610, 210690  133,940  117,465  87.7 
Designated dairy products for 
general use  040210, 040221, 040229, 
040299, 040390, 040410, 
040510, 040520, 040590  137,202  195,478  100.0a 
Dried leguminous vegetables  071310, 071332, 071333, 
071334, 071335, 071339,  
071350, 071360, 071390  120,000  66,931  55.8 
Wheat, meslin, triticale and 
their processed products  100111, 100119, 100191, 
100199, 100860, 110100, 
110290, 110311, 110319, 
110320, 110419, 110429, 
110811, 190120, 190190, 
190410, 190420, 190430, 
190490, 2106 90  5,740,000  4,760,668  82.9 
Barley and its processed 
products  100310, 100390, 110290, 
110319, 110320, 110419, 
110429, 190120, 190190, 
190410, 190420, 190490, 210690  1,369,000  186,282  13.6 
Rice and its worked and/or 
prepared products  100610, 100620, 100630, 
100640, 110290, 110319, 
110320, 110419, 110429, 
190120, 19 0190, 190410,  
190420, 190490, 210690  682,200  677,783  99.4 
Starches, inulin, and their 
preparations  110812, 110813, 110814, 
110819, 110820, 190120, 190190  157,000  139,344  88.8 
Ground -nuts  120230, 120241, 120242  75,000  30,795  41.1 
Tubers of konnyaku  121299  267 32 12.0 
Silk-worm cocoons and raw 
silk  500100, 500200  798 103 12.9 
.. Not available.  
a In case where in -quota imports exceeded the TQ quantities, fill rates are capped at 100%.  
Source:  WTO document G/AG/N/JPN/264/Rev.1, 14  June 2022.  
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 Table  A4.3 Other products for which tariff quotas are applied, 2022  
Description  HS code  Out-of-quota rate  HS code  In-quota 
rate  
Cheese and curd for use as material 
for processed cheese  040610090  
040640090  
040690090  29.8%  040610010  
040640010  
040690010  0% 
Maize other than seed  100590099  50% or JPY  12/kg, 
whichever is the greater  100590091  0% 
 
    100590092  0%  
    100590095  0%  
    100590096  3% 
Malt 110710019  JPY 21.30/kg  110710011  0% 
Malt 110710029  JPY 21.30/kg  110710021  0% 
Malt 110720020  JPY 21.30/kg  110720010  0% 
Tomato puree  200290219  16% 200290211  0% 
Tomato puree  200290229  16% 200290221  0% 
Prepared pineapples  200820119  JPY 33/kg  200820111  0% 
Prepared pineapples  200820219  JPY 33/kg  200820211  0% 
Raw hides and skins  410120212  30% 410120211  12% 
Raw hides and skins  410150212  30% 410150211  12% 
Raw hides and skins  410190212  30% 410190211  12% 
Source:  Data based on Japanese FY2022/23 tariff schedule. Non -agricultural tariff lines subject to tariff 
quotas are found in HS Chapter 41 (prepared hides and skins, prepared leather), and in Chapter 64 
(footwear).  
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 Table  A4.4 Imports under the SBS system, FY2017 -FY2021  
('000 tonnes)   
FY2017  FY2018  FY2019  FY2020  FY2021  
Rice 100 59 77 60 21 
Wheat  649 1,066  673 768 .. 
.. Not available.  
Source:  Data provided by the authorities.  
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 Table  A4.5 Food assistance FY2017 -FY2020  
FY Rice 
(tonnes)  Other agri -food productsa (tonnes)  
2017 71,102  41,439  
2018 78,719  22,777  
2019 87,089  44,711  
2020 47,071  19,481  
a Other agri -food products include coarse grains, skim milk powder, sugar, vegetables, vegetable oils, 
wheat, and wheat flour, depending on the year.  
Source:  WTO documents G/AG/N/JPN/270 -273. 
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 Table  A4.6 Payment rates for other cereals, sugar beet, starch potatoes, buckwheat, and 
rapeseed, 2019 and 2021  
(JPY per unit)  
Product  Payment rate 2021  
(payment rate in 2019)  Per unit  
Quantity -based payment    
Wheat  6,710 (6,940)  60 kg 
Two-row barley  6,780 (5,490)  50 kg 
Six-row barley  5,660 (5,720)  50 kg 
Naked barley  9,560 (8,230)  60 kg 
Soy beans  9,930 (9,040)  60 kg 
Sugar beet  6,840 (7,390)  tonne  
Starch potatoes  13,560 (11,610)  tonne  
Buckwheat  13,170 (16,840)  45 kg 
Rapeseed  8,000 (9,920)  60 kg 
Area -based payment  20,000 (20,000)  10 aresa 
a 10 ares = 1/10 of a hectare.  
Note:  The area -based payment rate for buckwheat is JPY 13,000 per 10 ares.  
Source:  Data provided by the authorities.  
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 Table  A4.7 Administered prices for calves, FY2022  
(JPY per unit)  
Product  Guaranteed price  Target rationalization price  
Japanese black calves  541,000 per calf  429,000  
Japanese brown calves  498,000 per calf  395,000  
Other beef breed  320,000 per calf  253,000  
Dairy breeds  164,000 per calf  110,000  
Cross -breeds  274,000 per calf  216,000  
Source:  Data provided by the authorities; and MAFF. Viewed at: 
https://www.maff.go.jp/j/press/chikusan/suisin/attach/pdf/211224 -1.pdf. 
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 Table  A4.8 Fisheries subsidies notified in June 2021 for FY2018 and FY2019  
Name of the 
programme  Level and form 
of the subsidy  Policy objective pursued  Beneficiaries  Duration and 
amount  
Programmes for 
development 
and adaptation 
of new 
technologies and 
conservation of 
fishing grounds  - National  
- Grants, etc.  Support fishers and their 
organizations to conserve 
fishing grounds and 
mitigate damage by 
harmful marine species, 
using new technologies  Fishers and their 
organizations  FY2019: 
JPY 3,588  million;  
FY2018: 
JPY 3,170  million  
 
Support for 
establishment of 
environmentally 
and 
economically 
sustainable 
fisheries  - National  
- Grants, etc.  Enable fishers and their 
organizations to conduct 
sustainable fishing 
practices, thereby 
establishing 
environmentally and 
economically sustainable 
fisheries. Such supports 
include the mitigation of 
damages on fishers by 
natural and economic 
disasters, and promotion 
of structural reform of 
fisheries sectors  Fishers and their 
organizations  FY2019: 
JPY 74,552  million; 
FY2018 
JPY 54,017  million  
 
Promotion for 
regional 
development 
through 
fisheries  - National  
- Grants, etc.  Promote regional 
development by 
supporting fishers and 
their organizations to 
conduct onsite 
fisheries -related activities 
such as national  border 
surveillance, revitalization 
of fishing communities in 
remote islands, and 
recruitment and 
settlement of new fishers  Fishers and their 
organizations  FY2019: 
JPY 10,985  million; 
FY2018 
JPY 9,085  million  
Support for 
aquaculture, 
inland fisheries, 
and fish stock 
enhancement  - National  
- Grants  Support aquaculture and 
inland fisheries, and to 
promote fish stock 
enhancement  Fishers and their 
organizations  FY2019: 
JPY 108 million; 
FY2018: 
JPY 518 million  
Subsidy for 
inland water 
aquacultur e - Local (Gifu 
prefectural 
government)  
- Grants  Stabilize and promote 
inland water aquaculture  Fisheries 
association and 
aquaculture 
producers  FY2019: 
JPY 1.0 million 
(Settlement of 
Accounts);  
FY2018: 
JPY 0.0 million 
(Settlement of 
Accounts)  
Source:  WTO document G/SCM/N/372/JPN, 30  June 2021.  
__________