WORLD TRADE  
ORGANIZATION  G/STR/N/10/JPN 
7 September 2004 
 (04-3714) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a)  
of the GATT 1994 and Paragra ph 1 of the Understanding on  
the Interpretation of Article XVII  
 
JAPAN 
  
 The following communication, dated 3 September 2004, is being circulated at the request of 
the Delegation of Japan.  
_______________ 
 
 I. LEAF TOBACCO 
1. Enumeration of State Trading Enterprises 
A. 
IDENTIFICATION OF STATE TRADING ENTERPRISES  
 Japan Tobacco Inc. (JTI) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Leaf tobacco (HS No. 2401.10,  2401.20,  2401.30, 2403.91) 
 2. Reason and Purpose 
 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
  
 The tobacco production is monopolized by the JTI for promoting sound development of the tobacco industry under the provisions of the Tob acco Business Law.  Although private traders can 
import leaf tobacco, this monopoly in effect renders all the importation of leaf tobacco for the manufacture of tobacco in Japan dependent  upon subsequent purchase by the JTI. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 The monopoly of production of manufactured tobacco is stipulated in Article 8 of the 
Tobacco Business Law. 
 G/STR/N/10/JPN 
Page 2  
 
 3. Description of the Functioning of the State Trading Enterprise 
 
A. SUMMARY STATEMENT PROVIDING OVER VIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 The JTI is engaged predominantly in the manuf acture and sales of tobacco products.  The JTI 
is also diversifying its business activities into phar maceuticals, food, real estate and engineering. 
 
B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 The importation of leaf tobacco and manufact ured tobacco has been liberalized since 
1 April 1985.  However, as a c onsequence of the continuing monopoly of manufacturing tobacco by 
the Japan Tobacco Inc. (JTI), the importation of l eaf tobacco for the manufact ure of tobacco in Japan 
is in effect dependent upon the purchase by the JTI. 
 
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 Any entity can engage in importation without any allowance. 
 
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 The JTI imports leaf tobacco on the basis of commercial consideration taking into account 
supply and demand situations of manufactured t obacco, as well as quality, market price and other 
relevant characteristics of leaf tobacco.  
E. HOW EXPORT PRICES ARE DETERMINED 
  The JTI exports leaf tobacco on the basis of commercial consideration.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 The JTI does not resale imported leaf tobacco. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NE GOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 No long-term contracts are negotiated by the JTI.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  The JTI is obligated to acquire all the leaf tobacco produced by domestic tobacco cultivators 
who enter into contracted purchase agreements with the JTI. 
 
4. Statistical Information  
 (See attached Tables I – III on Tobacco). 
  G/STR/N/10/JPN 
 Page 3 
 
 
 II. OPIUM 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES. 
 
 The Government of Japan (Ministr y of Health, Labour and Welfare) 
 
B. DESCRIPTION  OF PRODUCTS  AFFECTED  (INCLUDING  TARIFF  ITEM  NUMBER(S)  
ENCOMPASSED  IN PRODUCT  DESCRIPTION). 
 Opium (HS No. 13.02.11) 
 
1. Reason and Purpose 
A. REASON  OF PURPOSE  FOR  ESTABLISHING  AND/OR  MAINTAINING  STATE  TRADING  
ENTERPRISE 
 The purpose for maintaining the state trading en terprise is to achieve the rational supply of 
opium for medical and scientific purposes, as well as to conduct necessary contro l over the cultivation 
of opium poppy, and the transfer, receipt and possession and other relevant activities concerning 
opium and poppy straw. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 Under the provisions of the Opium Law, only th e Ministry of Health, Labour and Welfare is 
authorized as a state trading en terprise, which can conduct impor tation and exportation of opium, 
purchase opium from the opium poppy cultivators a nd from A class research cultivators and sell 
opium to narcotics manufacturers a nd narcotics research institution. 
  The monopoly of import and export opium is s tipulated in Article 2 of the Opium Law. 
 
 The above mentioned regulations are based on the provision of the Single Convention of 
Narcotic Drugs, 1961.  
2. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY  STATEMENT  PROVIDING  OVERVIEW  OF OPERATIONS  OF THE  STATE  
TRADING  ENTERPRISE 
 The Ministry of Health, Labour and Welfare, as  a state trading enterprise, imports opium from 
India through entrusted person by the Mi nistry of Health, Labour and Welfare. 
 
 The Ministry of Health, Labour and Welfare de termines the quantity of opium which is to be 
imported to Japan, on the basis of factors such as demand for opium in Japan and supply of opium in 
exporting country.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 The rights to import and to export opium belong ex clusively to the Ministry of Health, Labour 
and Welfare or persons entrusted by the Ministry of Health, Labour and Welfare. G/STR/N/10/JPN 
Page 4  
 
  
 The Ministry of Health, Labour and Welf are purchases all the opium which opium poppy 
cultivators or A class research  cultivators have gathered. 
  The Ministry of Health, Labour and Welfare determines the price for purchase of the opium 
from opium poppy cultivators, after consulting with th e Ministry of Finance, on the basis of factors 
such as the condition of production by opium poppy cultivators, import price of opium and other economic conditions.  
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 There are no entities allowed to engage in impor tation and exportation other than the Ministry 
of Health, Labour and Welfare.  
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 The Ministry of Health, Labour and Welfare de termines the quantity of opium which is to be 
imported to Japan on the basis of factors such as demand for opium in Japan and supply of opium in 
exporting country. 
 
E. HOW EXPORT PRICES ARE DETERMINED 
 
 The Ministry of Health, Labour and Welfare does not export opium. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 The Ministry of Health, Labour and Welfare determines the resale price on the basis of 
factors such as import price and other expense. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE  GOVERNMENT  
 
 No long-term contracts are negotiated by th e Ministry of Health, Labour and Welfare. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
 
 The Ministry of Health, Labour and Welfare imports opium through en trusted person by the 
Ministry and purchases all the opium gathered by  opium poppy cultivators or A class research 
cultivators.  The Ministry of Health, Labour and Welfare sells opium to narcotics manufacturers and 
proprietors of narcotics research institution. 
 
4. Statistical Information  
 (See attached Tables I – III on Opium). 
 5. Reason why no foreign trade has taken place (as appropriate) 
 
 All imported opium is used for medical and scientific purposes.   Japan does not produce opium for export.  G/STR/N/10/JPN 
 Page 5 
 
 
  
III. ALCOHOL 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 New Energy and Industrial Technolog y Development Organization (NEDO) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PR ODUCT DESCRIPTION)  
 
 Alcohol of an alcoholic strength by volume of 90 per cent vol. or higher    
2. Reason and Purpose 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 The monopoly of a certain type of alcohol (defined above) which had lasted for more than 
60 years was abolished on 31 March 2001.  There is a fear that a sudden liberalization of the alcohol 
market by the abolishment of the monopoly system may result in unfavourable influences in distribution and price mainly for users in remote locations and small users due to undeveloped private 
distribution networks.  In order to alleviate such  drastic change the market, NEDO undertakes, as a 
temporary step, all purchases/sales of alcohol for about five years from 1 April 2001. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 All purchases/sales of alcohol by NEDO is s tipulated in Appendix Article 2 and 6 of the 
Alcohol Business Law.  3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVER VIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 NEDO undertakes all purchases/sales of alcohol which is imported by permitted importers 
and produced by permitted producers for about five years from 1 April 2001.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 NEDO is granted the function of monopoly to purchase and sell all alcohol which is imported 
by permitted importers and produced by permitted producers for about five years from 1 April 2001. 
 
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION 
 
 If permission is granted, anybody can import.  G/STR/N/10/JPN 
Page 6  
 
 D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 Import levels by permitted importers are not restricted under the Alcohol Business Law. 
 
E. HOW EXPORT PRICES ARE DETERMINED 
 
 Export prices are not restricted under the Alcohol Business Law. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
  Under Appendix Article 4 of the Alcohol Busi ness Law, NEDO must sell the alcohol in the 
prices approved by Minister of Economy, Trade and Industry. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT. 
 
 NEDO does not negotiate long-term contracts.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  NEDO undertakes all purchases of alcohol which is imported by permitted importers and produced by permitted producers. NEDO sells the alc ohol to permitted distributors or permitted users. 
However, this function of monopoly by NEDO is only for about 5 years from 1 April 2001. 
 
4. Statistical Information  
 (See attached Tables I – III on Alcohol). 
 
IV. RICE, WHEAT AND BARLEY 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 The Government of Japan  
                The Ministry of Agriculture, Forestry & Fisheries (hereinafter referred to as “MAFF”) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Rice and its worked and/or prepared products (hereinafter referred to as “rice”).  
  Wheat, meslin, triticale and their processed products (hereinafter referred to as “wheat”). 
 
 Barley and its processed products (hereinafter re ferred to as “barley”).  (As for the tariff item 
numbers of specific products, see attached).   G/STR/N/10/JPN 
 Page 7 
 
 
 2. Reason and Purpose 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 MAFF is authorized to take measures to stab ilize supply and demand situations as well as 
prices for such staple foods as rice, wheat and barley, for promoting stability of national life and economy, according to the Law for Stabilization of Supply-Demand and Price of Staple Food. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR CONSTITUTIONAL POWERS 
   
 MAFF can import rice, wheat and barley, and can export rice when particular necessity exist, 
based on the Law for Stabilization of Supply-Demand and Price of Staple Food. 
 
 Legal provisions – Articles 30, 31, 32, 42 a nd 44 of the Law for Stabilization of Supply-
Demand and Price of Staple Food.   (Due to the amendment of the law as of 4
th July 2003, the articles numbers have shifted 
respectively.)    
 
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVER VIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
  MAFF mainly conducts the import of rice under the minimum access opportunities and 
wheat and barley under the current access opportunities, based on the Schedule XXXVIII-JAPAN in 
the WTO Agreement. 
   MAFF is not involved, in the marketing or distribution of over-quota imports of rice, wheat 
and barley, except for the collection of part of over-quota tariffs of such imports.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 MAFF can import rice, wheat and barley, and can  export rice when particular necessity exists, 
based on the Law for Stabilization of Supply-Demand and Price of Staple Food. 
  MAFF collects mark-ups on imported rice, whea t and barley which are bound in the Schedule 
XXXVIII-JAPAN in the WTO Agreement.   
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 Private traders can freely import wheat and barley subject to over-quota tariffs established in 
the Schedule XXXVIII-JAPAN in the WTO Agreement.   As for rice, after following the tariffication on  rice in April 1999, private traders can freely 
import rice subject to over-quota tariffs establishe d in the Schedule XXXVIII-JAPAN in the WTO 
Agreement. 
 G/STR/N/10/JPN 
Page 8  
 
 D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 MAFF imports rice under the minimum access opportunities and wheat and barley under the 
current access opportunities, both of which are est ablished in the Schedule XXXVIII-JAPAN in the 
WTO Agreement.   MAFF sells rice destined for food aid pursuant  to the Government’s decision.  The quantity 
for food aid is determined, taking account of request s from recipient countries, relevant international 
rules on food aid etc.  
E. HOW EXPORT PRICES ARE DETERMINED 
 
 MAFF conducts no commercial export of rice, wheat and barley. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 The sales prices for imported rice, wheat and barley are determined on the basis of such 
factors as import prices, management costs and other economic conditions.   The sales prices for imported rice, wheat and barley are not to be above the sum of the respective purchase prices and the respective mark-ups bound in the WTO Agreement.  
 Mark-ups on imported rice, wheat and barley are used for their management costs such as 
storage, buying and selling costs and so on.  
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 MAFF has no long-term contracts on the import and export of rice, wheat and barley. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
 
 Private marketing whose prices are freely deci ded is predominant in the Japanese rice market, 
and the government purchase from domestic market is limited only to the minimum amount necessary 
for official stockpile under the Law for Stabiliza tion of Supply-Demand and Price of Staple Food. 
  Most of wheat and barley c onsumed in Japan is imported. 
 
4. Statistical Information  
 (See attached Tables I – III). 
 
5. Reason why no foreign trade has taken place  
 None. 
 6. Additional Information 
 The Food Agency, formerly affiliated to MAFF, had been dismantled.  Its functions as a state 
trading enterprise for rice, wheat and barley have been taken over by the MAFF as of 1 July 2003.   G/STR/N/10/JPN 
 Page 9 
 
 
 V. MILK PRODUCTS 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 Agriculture and Livestock Industries Corpor ation (hereinafter referred to as “ALIC”) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Designated dairy products for general use (s kimmed milk powder, sk immed milk solids, 
whole milk powder and solids, condensed milk, butter milk powder and other solids, whey and 
modified whey, butter and butter oil), hereinafter re ferred to as “designated dairy products”.  As for 
the tariff item numbers of the specific products, see the notification on the administration of tariff 
quotas (G/AG/N/JPN/1).  
2. Reason and Purpose 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 ALIC is authorized to take measures to stab ilize supply and demand situations of and prices 
for milk products, to promote sound development of  dairy and related industries and to improve 
national diet under the Manufacturing Milk Pr oducer Compensation Temporary Law and the 
Agriculture and Livestock Industries Corporation Law.   As a part of such measures, ALIC, as a state trading enterprise, imports designated dairy 
products to ensure proper and smoot h operation of the system to stabilize supply/demand and price of 
the designated milk products.  
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
  
 Article 13 of the Manufacturing Milk Producer Compensation Temporary Law.  
 Article 28 of the Agriculture and Li vestock Industries Corporation Law. 
 
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVER VIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 ALIC deals with in-quota imports of designated dairy products established in 
Schedule XXXVIII-Japan in the WTO Agreement.  
 ALIC is not involved, in the marketing or distribution of over-quota imports of designated 
dairy products, except for the collection of a part of over-quota tariffs of such imports. 
 G/STR/N/10/JPN 
Page 10  
 
 B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
  
 ALIC collects mark-ups on imported desi gnated dairy products which are bound in 
Schedule XXXVIII-Japan in the WTO Agreement.  
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 Private traders can freely import designated dairy products subject to over-quota tariffs 
established in Schedule XXXVIII-Japan in the WTO Agreement. 
 
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 ALIC imports designated dairy products under the current access opportunities established in 
Schedule XXXVIII-Japan in the WTO Agreement.  
E. HOW EXPORT PRICES ARE DETERMINED 
  This item is not applicable for ALIC.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
  The resale prices are determined by a tender.   The prices, however, are not to be above the sum of the ALIC purchase prices and the mark-
ups bound in Schedule XXXVIII-Japan in the WTO Agreement. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 ALIC has no long term contracts on th e import of designated dairy products. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  Total national demand for milk and milk produc ts in FY 2002 was  13.08 million tons milk 
equivalent.   8.38 million tons of raw milk were produced in FY 2002 of which  3.25 million tons were 
processed for milk products.  Annual production of butter, skimmed milk powder and cheese in FY 
2002 were 80 thousand tons,  179 thousand to ns and 125 thousand tons, respectively. 
  3.78 million tons milk equivalent of milk pr oducts were imported to meet the demand in FY 
2002.  Annual imports of butter, skimmed milk pow der and cheese in FY2000 were  7 thousand tons,  
3 thousand tons (excluding skimmed milk powde r for animal feed) and  196 thousand tons, 
respectively.  
4. Statistical Information  
 (See attached Tables I – III). 
  G/STR/N/10/JPN 
 Page 11 
 
 
 5. Reason why no foreign trade has taken place  
 None. 
 
6. Additional Information 
 None. 
 
VI. RAW SILK 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 Agriculture and Livestock Industries Corporation (ALIC)  
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Raw silk (including doupion silk).  As for the tariff item number of the specific products, see the notification on the administration of tariff quotas (G/AG/N/JPN/1).  2. Reason and Purpose 
A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 ALIC as a state trading enterprise, is authorized to import raw silk as part of measures to 
coordinate raw silk import, for promoting stable  management of the industry concerning cocoon and 
raw silk and increasing raw silk demand, under the provisions of the Raw Silk Import Coordination 
Law.  
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR CONSTITUTIONAL POWERS 
 
 Legal provisions – Article 2 of th e Raw Silk Import Coordination Law. 
 
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVER VIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 ALIC deals with in-quota imports of ra w silk established in Schedule XXXVIII-JAPAN in 
the WTO Agreement. 
 
 ALIC is not involved, in the marketing or distribution of over-quota imports of raw silk, 
except for the collection of a part of over-quota tariff of such imports.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIA L RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE. 
 
 ALIC deals with in-quota imports of raw silk. G/STR/N/10/JPN 
Page 12  
 
 C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION AND CONDITIONS FOR PARTICIPATION 
 
 Private traders can freely import raw silk subject to out-quota tariffs established in 
Schedule XXXVIII-JAPAN in the WTO Agreement.    
D. HOW IMPORT LEVELS ARE ESTABLISHE D BY THE STATE TRADING ENTERPRISE 
 
 ALIC imports raw silk under the current access opportunities established in Schedule XXXVIII-JAPAN in the WTO Agreement.  
E. HOW THE STATE TRADING ENTERPRISE DETER MINES ITS EXPORT PRICE – E.G., (I) IN 
RELATION TO PRICES IN OTHER MARKETS,  (II) THROUGH TENDERING.  INCLUDE 
INFORMATION ON THE USE OF REVENUE GENERATED 
 
 ALIC does not export raw silk. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 Domestic sales prices for imported raw silk are determined on the basis of such factors as its 
import prices, management costs, domestic pri ces of raw silk and other economic conditions. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 ALIC has no long term contracts on the import of raw silk.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  Domestic raw silk demands are filled with  domestic production and imports of raw silk. 
  The declining demand for silk products causes decrease in both the domestic demand and the 
domestic production of raw silk every year. 
 
4. Statistical Information  
 (See attached Tables I-III). 
 5. Reason why no foreign trade has taken place 
 Over-quota imports of raw silk by private tr aders fill the gap between  domestic demands and 
domestic production of raw silk.  
  G/STR/N/10/JPN
 Page 13TABLE I  
 
STATE TRADING:  JAPAN TOBACCO INC. 
 
Statistical Information, Imports  
 
Description of product 
(including HS numbers) Fiscal  year Total quantity 
imported  
(tons) Quantity imported 
by state trading 
enterprise 
(tons) Average import 
price  
(¥/kg.) Average 
representative 
domestic sales 
price (¥/kg.) Mark-up 
(¥/kg.) National 
production  
(tons) 
2001 100,713 100,713 688 - - 60,596 
2002 87,483 87,483 705 - - 58,219 Leaf tobacco 
HS No. 2401.10, 2401.20,    
             2401.30, 2403.91 2003 89,218 89,218 661   50,687 
 
 
Source :  Ministry of Finance "Japan's Trade Statistics" – JTI Data. 
  
TABLE II  
 
STATE TRADING:  JAPAN TOBACCO INC. 
 
Statistical Information, Exports
 
 
Description of product 
(including HS numbers) Fiscal  year Total quantity 
exported 
(tons) Quantity exported 
by state trading 
enterprise 
(tons) Average 
procurement price  
(¥/kg.) Average 
representative 
domestic sales 
price (¥/kg.) Average export 
price 
(¥/kg.) National 
production  
(tons) 
2001 808 808 - - - 60,596 
2002 801 801 - - - 58,219 Leaf tobacco 
HS No. 2401.10, 2401.20,    
             2401.30, 2403.91 2003 5,706 5,706    50,687 
 
 Source
:  Ministry of Finance "Japan's Trade Statistics" – JTI Data. 
  
 G/STR/N/10/JPN 
Page 14  
 
 
 
TABLE III 
 
STATE TRADING:  JAPAN TOBACCO INC. 
 
Statistical Information, Domestic Activities  
  
Description of product 
(including HS numbers) Fiscal Year Domestic purchases by 
state trading enterprise 
(tons) National production 
(tons) Domestic sales by state 
trading enterprise 
(tons) National consumption 
(tons) 
2001 60,596 60,596 - 160,320 
2002 58,219 58,219 - 155,691 Leaf tobacco 
HS No. 2401.10, 2401.20,     
             2401.30, 2403.91 2003 50,687 50,687 - 148,695 
 
Source :  JTI Data. 
   
 
     
 
    
 
    
  
  G/STR/N/10/JPN
 Page 15 
TABLE I  
 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
 
Statistical Information, Imports  
 
Description of product  Total quantity 
imported 
(kg.) Quantity imported 
by state trading 
enterprise 
(kg.) Average import 
price  
(US$/kg.) Average 
representative 
domestic price 
(¥/kg.) Mark-up 
 National 
production  
(kg.) 
108,000 
(J.F.Y.2001) 108,000 
(J.F.Y.2001) 77.5 202,500 - 2.1 
(J.F.Y. 2001) 
118,000 
(J.F.Y. 2002) 118,000 
(J.F.Y. 2002) 72.5 202,500 - 2.4 
(J.F.Y. 2002) Opium (HS 13.02.11) 
100,000 
(J.F.Y. 2003) 100,000 
(J.F.Y. 2003) 72.5 202,500 - 3.0 
(J.F.Y. 2003) 
 
The rate is about ¥109 to the US$.  Japan Fiscal Year (J.F.Y.) is from April to March.  (Opium includes 11 per cent of Morphine ). 
  
TABLE II  
 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
 
Statistical Information, Exports
 
 
Description of product  Total quantity 
exported 
(kg.) Quantity exported 
by state trading 
enterprise 
 Average 
procurement price Average 
representative 
domestic sales 
price Average export 
price 
 National 
production  
 
0 
(J.F.Y. 2001) - - - - 2.1 
(J.F.Y. 2001) 
0 
(J.F.Y. 2002) - - - - 2.4 
(J.F.Y. 2002) Opium 
(HS 13.02.11) 
0 
(J.F.Y. 2003) - - - - 3.0 
(J.F.Y. 2003) 
 
Japan Fiscal Year (J.F.Y.) is from April to March.  
 G/STR/N/10/JPN 
Page 16  
 
 
TABLE III  
 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
 
Statistical Information, Domestic Activities  
 
 
Description of product  Domestic purchases by state 
trading enterprise 
 (kg.) National production 
 (kg.) Domestic sales by state 
trading enterprise 
(kg.) National consumption 
(kg.) * 
2.1 
(J.F.Y. 2001) 2.1 
(J.F.Y. 2001) 106,269 
(J.F.Y. 2001) 62  
 (Calendar year 2001) 
2.4 
(J.F.Y. 2002) 2.4 
(J.F.Y. 2002) 107,800 
(J.F.Y. 2002) 61 
(Calendar year 2002) Opium 
(HS 13.02.11) 
3.0 
(J.F.Y. 2003) 3.0 
(J.F.Y. 2003) 99,860 
(J.F.Y. 2003) Not calculated yet 
(Calendar year 2003) 
 
The rate is about ¥109 to the US$.  Japan Fiscal Year (J.F.Y.) is from April to March.  
* The figures indicate the national consumption in the form of opium products ( ahen seizai )  
  G/STR/N/10/JPN
 Page 17 
TABLE I 
STATE TRADING:  New Energy and Industrial Technology Development Organization (NEDO) 
STATISTICAL INFORMATION, IMPORTS 
 
Description 
of product(s) Year Total quantity 
imported 
(kl) Quantity imported by 
state trading enterprise
(kl) Average 
import price 
(US$/kl) Average representative
domestic sales price 
(Yen/kl) Mark-up National 
production 
(kl) 
2001 471,532 182,081 369 104,164 ($1=120.95yen) - 298,609 
2002 432,580 157,079 347 96,476 ($1=125.61yen) - 298,056 Ethyl alcohol 
(HS No, 2207.10) 2003 403,882 153,661 336 87,706 ($1=116.41yen) - 305,599 
 
 
TABLE II 
STATE TRADING:  New Energy and Industrial Technology Development Organization (NEDO) 
STATISTICAL INFORMATION, EXPORTS 
 
Description 
of product(s) Year Total quantity 
exported 
(kl) Quantity exported by 
state trading enterprise
(kl) Average 
Procurement price Average representative
domestic sales price 
(Yen/kl) Average 
export price National 
production 
(kl) 
2001 215 0 - 104,164 ($1=120.95yen) - 298,609 
2002 1,149 0 - 96,476 ($1=125.61yen) - 298,056 Ethyl alcohol 
(HS No, 2207.10) 2003 116 0 - 87,706 ($1=116.41yen) - 305,599 
 
 
TABLE III 
STATE TRADING:  New Energy and Industrial Technology Development Organization (NEDO) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description 
of product(s) Year Domestic purchases 
by state trading enterprise 
(kl) National production 
 
(kl) Domestic sales 
by state trading enterprise 
(kl) National consumption 
 
(kl) 
2001 23,000 298,609 296,151 296,151 
2002 26,000 298,056 298,919 298,919 Ethyl alcohol 
(HS No, 2207.10) 2003 26,000 305,599 308,232 308,232 
  
 G/STR/N/10/JPN 
Page 18 TABLE I 
 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES   
                                                                                                                               
Statistical Information, Imports  
  
(Unit: 1,000 tons (Mark-up:  Yen/kg.)) 
Description of 
product(s) 
(including HS 
number(s)) Total quantity imported Quantity imported by 
state trading enterprise Average import price Average representative 
domestic sales price Mark-up National production 
1 2 3 4 5 6 7 
 
2001FY  
600  
2001FY  
600      
2001FY  
167  
2000FY  
9,490 
 
2002FY  
664  
2002FY  
663      
2002FY  
160  
2001FY   
9,057  
Rice 
 
2003FY  
n.a.  
2003FY  
n.a.      
2003FY  n.a. 
  
2002FY   
8,889 
 
2001FY  
5,737  
2001FY  
5,722      
2001FY  
21  
2000FY  
688 
 
2002FY  
5,033  
2002FY  
5,031      
2002FY  
19  
2001FY  
700  
Wheat 
 
2003FY  
n.a.  
2003FY  
n.a.      
2003FY n.a.  
2002FY  
829 
 
2001FY  
1,368  
2001FY  
1,368      
2001FY  
3  
2000FY  
214 
 
2002FY  
1,450  
2002FY  
1,450      
2002FY  
1  
2001FY  
207  
Barley 
 
2003FY  
n.a.  
2003FY  
n.a.      
2003FY n.a.  
2002FY  
217 
 
 Note
:   1.  As for the HS numbers, see attached. 
  2.   The figures of columns 2, 3, and 6 in 2003FY has not been decided.   3.   Data source:  Ministry of  Finance "Japan's Trade Statistics" 
   Ministry of Agriculture, Forestry and Fi sheries "Food Balance Sheet" and related data.  
      
  G/STR/N/10/JPN
 Page 19 
 
TABLE II 
 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES 
                                                                                                                               
Statistical Information, Exports  
 
 
(Unit: 1,000 tons, Yen/ton) 
Description of 
product(s) 
(including HS 
number(s)) Total quantity exported Quantity exported by 
state trading enterprise Average procurement 
price Average representative 
domestic sales price Average export price National production 
1 2 3 4 5 6 7 
 
2001FY  
206  
2001FY  
206  
2001FY  
47,994  
2001FY  
234,991  
2001FY n.a.  
2000FY  
9,490  
 
2002FY  
182  
2002FY  
182  
2002FY  
43,822  
2002FY  
226,081  
2002FY n.a.  
2001FY   
9,057   
Rice 
 
2003FY   n.a.  
2003FY   n.a.  
2003FY n.a.  
2003FY n.a.  
2003FY n.a.  
2002FY   
8,889  
 
 
Note :   1.  As for the HS numbers, see attached. 
  2.   All the quantity exported was for food aid.   3.   The figures of columns 2, 3, 4 and 5 in 2003FY have not been decided.   4. Data source:  Ministry of Agriculture, Forest ry and Fisheries "Food Balance Sheet" and related data. 
    
    
 G/STR/N/10/JPN 
Page 20 TABLE III  
 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES   
 
Statistical Information, Domestic Activities  
 
(Unit:  1,000 tons) 
Description of 
product(s) (including 
HS number(s)) Domestic purchases by state 
trading enterprise National production Domestic sales by state trading 
enterprise National consumption 
1 2 3 4 5 
Rice  
2001FY 
 
2002FY 
 
2003FY  
80 
 
141 
 
     n.a. 
2000FY 
 
2001FY 
 
2002FY  
9,490 
 
9,057 
 
8,889 
2001FY 
 
2002FY 
 
2003FY  
737 
 
446 
 
   n.a. 
2000FY 
 
2001FY 
 
2002FY  
9,790 
  
9,638 
  
9,459 
Wheat  
2001FY 
 
2002FY 
 
2003FY  
1 
 
0 
 
n.a. 
2000FY 
 
2001FY 
 
2002FY  
688 
 
700 
 
829 
2001FY 
 
2002FY 
 
2003FY  
5,178 
 
5,125 
 
     n.a. 
2000FY 
 
2001FY 
 
2002FY  
6,311 
 
6,227 
 
6,203 
Barley  
2001FY 
 
2002FY 
 
2003FY  
2 
 
1 
 
n.a. 
2000FY 
 
2001FY 
 
2002FY  
214 
 
207 
 
217 
2001FY 
 
2002FY 
 
2003FY  
1,554 
 
1,520 
 
      n.a.  
2000FY 
 
2001FY 
 
2002FY  
2,627 
 
2,548 
 
2,445 
 
Note: 1. As for the HS numbers, see attached.              2.          The figures of columns 2 and 4 in 2003FY have not been decided.  3. Data source:  Ministry of Agriculture, Forest ry and Fisheries "Food Balance Sheet" and related data. 
  G/STR/N/10/JPN 
 Page 21 
 
 
 1. Rice and its worked and/or prepared products  
 
1006.10.010 
1006.20.010 1006.30.010 
1006.40.010 
1102.30.010 1103.14.010 1103.29.250 1104.19.250 
1104.29.250 
1901.20.122 1901.20.162 1901.90.142 1901.90.587 
1904.10.211 1904.20.211 
1904.90.120 
2106.90.517 
 
 
2. Wheat, meslin, triticale and their processed products
 
 
1001.10.010 
1001.90.011 1001.90.016 
1001.90.019 
1008.90.021 1101.00.011 1101.00.091 
1102.90.210 
1103.11.010 1103.19.210 1103.21.010 1103.29.410 
1104.19.111 1104.19.121 
1104.29.111 1104.29.121 
1108.11.010 
1901.20.131 1901.20.151 1901.90.151 
1901.90.171 
1904.10.221 1904.20.221 1904.90.210 2106.90.214 
 G/STR/N/10/JPN 
Page 22  
 
 3. Barley and its processed products
 
 
1003.00.011 
1003.00.019 1102.90.110 
1103.19.110 
1103.29.310 1104.11.010 1104.21.010 1901.20.141 
1901.90.161 1904.10.231 
1904.20.231 
1904.90.310 2106.90.216  
  G/STR/N/10/JPN
 Page 23TABLE I  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Imports  
 
(Unit:  Metric tons, Yen/Kg.) 
Description of products 
(including HS numbers) Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price Average 
representative 
domestic sales price Mark-ups National production 
1 2 3 4 5 6 7 
Skimmed milk powder 
and skimmed milk solids (0402.10, 0402.21)  14,394 ( 2001) 
 3,431 ( 2002)  3,385 ( 2003)  10,271 
 0  0  282 
 -  -  545 
 544  541 - 
- -  177,855 
 178,905  184,372 
Whole milk powder and other solids  (0402.21, 0402.29)       17 ( 2001) 
     21 ( 2002)      30 ( 2003) 0 
0 0 - 
- -  780 
 781  780 - 
- -  17,456 
 17,021  15,020 
Condensed milk (0402.99)      55 ( 2001) 
     19 ( 2002)      26 ( 2003) 0 
0 0 - 
- -  357 
354 
 354 - 
- -  31,899 
 31,911  33,104 
Buttermilk powder and other solids 
(0403.90)       11 ( 2001) 
     10 ( 2002) 
     0 ( 2003) 0 
0 
0 - 
- 
- -* 
-* 
-* - 
- 
- - * 
- * 
- * 
Whey and modified whey (0404.10)  16,527 ( 2001) 
 16,457 ( 2002) 
 13,581 ( 2003)  3,804 
 4,555 
 3,633  218 
 206 
 210 -* 
- * 
- * - 
- 
- - * 
- * 
- * 
Butter and butter oil (0405.10, 0405.20, 0405.90)     379 ( 2001) 
   6,648 ( 2002)  10,818 ( 2003) 0 
 6,318 
 10,453 - 
 157  205  946 
 951  960 - 
- -  83,172 
 79,598  81,508 
 
Remarks:  (*) No official data available.  
 G/STR/N/10/JPN 
Page 24 TABLE II  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Exports  
 
(Unit:  Metric tons, Japanese Yen) 
Description of products 
(including HS numbers) Total quantity 
exported Quantity exported by 
state trading 
enterprise Average 
procurement price Average 
representative 
domestic sales price Average export 
price National 
production 
1 2 3 4 5 6 7 
Skimmed milk powder 
and skimmed milk solids  (0402.10, 0402.21)           260 ( 2001) 
          10 ( 2002) 
          9 ( 2003) 0 
0 0 - 
- -  545 
 544  541 - 
- -  177,855 
 178,905  184,372 
Whole milk powder and other solids (0402.21, 0402.29)           152 ( 2002) 
          28 ( 2002) 
        53 ( 2003) 0 
0 0 - 
- -  780 
 781  780 - 
- -  17,456 
 17,021  15,020 
Condensed milk (0402.99)           9 ( 2001) 
         14 ( 2002) 
         31 ( 2003) 0 
0 
0 - 
- 
-  357 
354 
 354 - 
- 
-  31,899 
 31,911 
 33,104 
Buttermilk powder and other solids 
(0403.90)         481 ( 2001) 
        86 ( 2002) 
        38 ( 2003) 0 
0 
0 - 
- 
- - * 
- * 
- * - 
- 
- - * 
- * 
- * 
Whey and modified whey (0404.10)          720 ( 2001) 
         1,792 ( 2002) 
      456 ( 2003) 0 
0 0 - 
- - - * 
- * - * - 
- - - * 
- * - * 
Butter and butter oil (0405.10, 0405.20, 0405.90)          6 (2001) 
        3 (2002) 
         225 (2003) 0 
0 0 - 
- -  946 
 951  960 - 
- -  83,172 
 79,598  81,508 
 Remarks:  (*) no official data available.  
  G/STR/N/10/JPN
 Page 25TABLE III  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Domestic Activities  
 
(Unit:  Metric tons, Japanese Yen/Kg.) 
Description of products 
(including HS numbers) Domestic purchases by 
state trading enterprise National production Domestic sales by state 
trading enterprise National 
consumption 
1 2 3 4 5 
Skimmed milk powder and skimmed milk solids (0402.10, 0402.21) 0 ( 2001) 
0 ( 2002) 
0 ( 2003)  177,855 
 178,905 
 184,372 0 
0 
0  170,000 
 177,000 
- * 
Whole milk powder and other solids (0402.21, 0402.29) 0 ( 2001) 
0 ( 2002) 0 ( 2003)  17456 
 17,021  15,020 0 
0 0  17,000 
 17,000 
- * 
Condensed milk  (0402.99) 0 ( 2001) 
0 ( 2002) 0 ( 2003)  31,899 
 31,911  33,104 0 
0 0  31,000 
 32,000 
- * 
Buttermilk powder and other solids  (0403.90) 0 ( 2001) 
0 ( 2002) 0 ( 2003) - * 
- * - * 0 
0 0 - * 
- * - * 
Whey and modified whey (0404.10) 0 ( 2001) 
0 ( 2002) 
0 ( 2003) - * 
- * 
- * 0 
0 
0 - * 
- * 
- * 
Butter and butter oil (0405.10, 0405.20, 0405.90) 0 ( 2001) 
0 ( 2002) 
0 ( 2003)  83,172 
 79,598 
 81,508 0 
0 
0  94,000 
 90,000 
- * 
 
Remarks:  (*) no official data available. 
  
 G/STR/N/10/JPN 
Page 26 TABLE I  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Imports  
 
Description of 
product(s) Total quantity 
imported (Unit:  t) Quantity 
imported by 
state trading 
enterprise  
(Unit:  t) Average 
import price Average 
representative 
domestic sales 
price Mark-up 
(Unit:  yen/kg.) National 
production 
(Unit:  t) JFY 
1 2 3 4 5 6 7  
Raw silk 1,775  
1,850 1,887   0 
  0   0    
    425 
  373   278 2001 
2002 2003 
  
TABLE III  
 
STATE TRADING:  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Domestic Activities
 
 
Unit: t 
Description of 
product(s) Domestic purchases by 
state trading enterprise National production Domestic sales by state 
trading enterprise National consumption JFY 
1 2 3 4 5  
Raw silk   0 
  0 
  0   425 
  373 
  278   0 
  0 
  0 2,290 
2,145 
2,014      2001 
2002 
2003 
 
 
__________