RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/137
2 May 2001
(01-2249)
Committee on Government Procurement Original:  English
JAPAN'S RESPONSES TO QUESTIONS FROM THE UNITED STATES (GPA/W/132),
CANADA (GPA/W/134) AND HONG KONG, CHINA (GPA/W/135) REGARDING THE
NOTIFICATION FROM JAPAN UNDER ARTICLE XXIV:6(a) (GPA/W/129)
I. QUESTIONS FROM THE UNITED STATES
1. What is the reason for seeking to move the IAIs from Annex 1 to Annex 3?  Please explain
why the new IAIs cannot simply be added to Annex 1, rather than creating a complex two-tier list of
entities in Annex 3.
Until the end of last March, undertakings conducted by the 57 IAIs (Independent
Administrative Institutions) which we propose to add to Annex 3, used to perform part of the
responsibilities of certain central government entities in Annex 1.  Starting form 1 April this year,
those undertakings fall – in the context of the organizational reform of the central government - under
the responsibilities of the 57 IAIs each of which forms an independent legal entity from the centralgovernment.  The National Accounts Law and Na tional Government Organization Law do not apply
to those IAIs, which were established as entities to be governed by the general law on IAIs and
respective laws establishing IAIs (i.e., 57 laws that stipulate the name, purpose, functions, executives
and the Ministers in charge of the IAIs, etc.).  Accordingly, the 57 IAIs, under domestic legislation,
are not classified as central government entities mentioned in Annex 1;  and we have therefore
decided to add those IAIs to Annex 3.
2. For each IAI that Japan proposes to add to Annex 3, what was the central government entity
that was previously responsible for the procurement that the IAI will now conduct?  Please provide a
concordance table similar to the one provided by Switzerland in GPA/W/114.
Please see Attachment 1 to this document.
3. Do any of the IAIs have internal sub-divisions, independent organs, attached organizations,
other organizations or local branch offices, as those terms are used in Note 1 to Japan's Annex 1?  If
so, how does Japan intend to maintain the coverage of such entities?
All of the 57 IAIs have internal sub-divisions;  and the National Youth Houses, National
Children's Centres, National Agricultural Research  Organization, and Fisheries Research Agency,
etc., have local branch offices.  Although Japan has not included in its Annex 3 such a note as Note 1
to Annex 1 since the Agreement on Government Procurement took effect, we have honestly
implemented the Agreement with respect to Annex 3, by interpreting that the Agreement applies to all
of the organizations related to the existing Annex 3 entities - i.e., headquarters as well as internal
sub-divisions, local branch offices and others.  Also, we undertake the fact that we will implement the
Agreement in the same manner with respect to thos e IAIs to be listed in Annex 3.  Thus, it is the
official view of the Government of Japan that all of the relevant organizations of those IAIs are to be
subject to the disciplines of the Agreement on Government Procurement, even if we would not use in
Annex 3 a similar language to Note 1 to Annex 1.GPA/W/137
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4. What specific authority does the central government have over the conduct of procurements
by IAIs?  Does the central government have the same degree of authority over Annex 3 entities as
over Annex 1 entities?
5. Will a central government entity listed on Annex 1 be responsible for overseeing the
procurement of each IAI?  If so, please provid e a list of the entities responsible for each IAI.
Answer to Questions 4 and 5:  As IAIs are legally independent from the central government,
IAIs autonomously engage in internal decision-making and actual conduct of government
procurement.  The ministries responsible for each IAI, therefore, do not instruct nor oversee
individual procurements of the IAI every time t hose are conducted.  On the other hand, the ministries
requests from the relevant IAIs the preparation of necessary accounting rules to implement the
Agreement on Government Procurement, and receive, based on legislation, the report on the prepared
rules (see attached the relevant provisions of the general law on IAIs).  As for the list of the ministries
responsible for each IAI, please refer to the attached table.
6. What is the legal authority that would require the new IAIs to comply with the Agreement on
Government Procurement?
As IAIs are not subject to national legislation such as the Accounts Law, based on which
central government entities implement the GPA, the consistency with the Agreement is ensured
through each IAI setting accounting rules that provide for relevant thresholds and procedures as
specified in the Agreement.
II. QUESTIONS FROM CANADA
1. What is the reason for seeking to move the newly formed IAIs from Annex 1 to Annex 3?
Please explain why the new IAIs would not be added to Annex 1 since they are successor entities for
entities covered in Annex 1.
Please refer to the answer given to the US Question 1 above.
2. Does the Accounts Law referred to in Note 1 in the Notes to Japan's Annex 1 apply to any of
the covered central government organizations that were previously performing the functions of theIAIs?
The Accounts Law does apply to all of the central government entities listed in Annex 1.  The
IAIs performing - as from 1 April this year - the part of undertakings previously conducted by certain
central government entities, however, are not subjected to the law.
3. Would Japan please confirm that the revision to the General Note 3 would, if the IAIs were
moved to Annex 3, result in the maintenance of the current concessions provided by Japan to
Canada?
We can confirm that this revision is to en sure the maintenance of the existing level of
concessions provided by Japan to Canada, if the IAIs were listed in Annex 3.GPA/W/137
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III. QUESTIONS FROM HONG KONG, CHINA
1. Hong Kong, China would like to request Japan to  provide to the Committee more information
relating to the organizational changes as well as further clarification from Japan on the obligations
of those entities proposed to be added to Annex 3 vis-à-vis the obligations of the 90 undertakings
originally operated by central government entities.
Please refer to the answers given to the US questions, in particular those to Questions 1 and 2.
2. In particular, we would welcome clarification of the obligations of those affected entities
under various Articles of the Agreement on Go vernment Procurement, including for example
Articles IX, XI and XIX.
As IAIs are not subject to national legislation such as the Accounts Law, based on which
central government entities implement the Agreement on Government Procurement, the consistency
with the Agreement is ensured through each IAI setting accounting rules that provide for relevant
thresholds and procedures as specified in the Agr eement.  This arrangement applies to all of the
obligations under the Agreement, including those related to Article IX, XI and XIX.
IV. CONCLUDING REMARKS
As explained above, the inclusion of the 57 IAIs in Annex 3 is based on the changes in
relevant domestic legislation, which is made in the context of the organizational reform of the central
government in Japan.  Furthermore, we have made in our notification necessary modifications withregard to Annexes 3 and 5 and the General Notes, so that the thresholds and conditions set for central
government entities in Annex 1 may be applied to the IAIs to be added to Annex 3.  This rectification
shall, thus, not in any way alter the existing leve l of mutually agreed coverage provided in the
Agreement on Government Procurement.  Also, all the 57 IAIs are supposed to put in place the
necessary accounting rules to implement the modified thresholds and procedures that we proposeunder the Agreement;  and needless to say, the challenge procedures as provided for in Article 20
applies to the procurement to be conducted by the IAIs.
Japan hopes that all the above clarifications will be of help for the United States, Canada and
Hong Kong, China to deepen their understanding about the recent notification regarding the proposed
rectification to Japan's Appendix I in relation to the treatment of the IAIs, leading to those countries'
early withdrawal of their objections to the rectification.GPA/W/137
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ATTACHMENT 1
THE LIST OF THE INDEPENDENT ADMINISTRATIVE INSTITUTIONS (IAIs) AND THE
CENTRAL GOVERNMENT ENTITIES IN CHARGE OF IAIs (AS OF 1 APRIL 2001)
Note:
(1) The underlined entities (1.-9. below) are the central government entities which previously
performed the procurement that those IAIs as listed under their names are performing from
1 April 2001.  These entities are in charge of those IAIs as listed under their names based on the
respective laws establishing the respective IAIs.
(2) The information in parenthesis after the name of each IAI indicates:  (a) the name(s) of the
central government unit(s) which previously performed the functions of that IAI;  and (b) the kind of
the unit(s) under the National Government Organization Law.
(3) do.(ditto) means that the above-mentioned central government unit(s) had the same name as
the corresponding IAI has now.
(4) (a), (b), (c) and (d) indicate the kind of the above-mentioned central government unit(s)
according to the National Government Organization Law:  (a) internal sub-divisions;  (b) independent
organs;  (c) attached organizations and other organizations;  and (d) local branch offices.
1. Cabinet Office
National Archives of Japan (do. (c) )
2. Ministry of Public Management, Home  Affairs, Posts and Telecommunications
Communications Research Laboratory (do. (c) )
National Research Institute of Fire and Disaster (do. (c) )
3. Ministry of Finance
National Research Institute of Brewing (do. (b) )4. Ministry of Education, Culture, Sports, Science and Technology
National Center For University Entrance Examinations (do. (c) )
National Institute of Special Education (do. (c) )
National Olympics Memorial Youth Center (do. (c) )
National Women's Education Center (do. (a) )
National Youth Houses (National Youth Houses in 13 prefectures: (a) )
National Children's Centers (National Children's Centers in 14 prefectures: (a) )The National Institute for Japanese Language (do. (c) )
National Science Museum (do. (c) )
National Institute for Materials Science (National Research Institute for Metals, National Institute for
Research in Inorganic Materials: (c) )GPA/W/137
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National Research Institute for Earth Science and Disaster Prevention (do. (c) )
National Aerospace Laboratory of Japan (do. (c) )
National Institute of Radiological Sciences (do. (c) )
National Museum of Art (National Museums of Modern Art (Tokyo, Kyoto), The National Museum
of Western Art, The National Museum of Art : (c) )National Museum (National Museums in Tokyo, Kyoto and Nara: (c) )
National Research Institute for Cultural Properties (National Research Institute for Cultural Properties
in Tokyo: (a), National Research Institute for Cultural Properties in Nara: (c) )
National Center for Teachers' Development (new : (a) )
5. Ministry of Health, Labour and Welfare
National Institute of Health and Nutrition (do. (c) )
National Institute of Industrial Safety (do. (c) )
National Institute of Industrial Health (do. (c) )
6. Ministry of Agriculture, Forestry and Fisheries
Center for Food Quality, Labeling and Consumer Services (do. (c) )
National Center for Seeds and Seedlings (do. (c) )
National Livestock Breeding Center (do. (c) )
Fertilizer and Feed Inspection Station (do. (c) )Agricultural Chemicals Inspection Station (do. (c) )
National Farmers Academy (do. (c) )
Forest Tree Breeding Center (do. (c) )
National Salmon Resources Center (do. (c) )
National Fisheries University (do. (c) )National Agricultural Research Organization ( cf. attachment: (c) )
National Institute of Agrobiological Sciences (do. (c) )
National Institute for Agro-Environmental Sciences (do. (c) )
National Institute for Rural Engineering (do. (c) )
National Food Research Institute (do. (c) )
Japan International Research Center for Agricultural Sciences (do. (c) )
Forestry and Forest Products Research Institute (do. (c) )Fisheries Research Agency ( cf. attachment: (c) )
7. Ministry of Economy, Trade and Industry
Research Institute of Economy, Trade and Industry (do. (c) )
National Center for Industrial Property Information (do. (b) )
Nippon Export and Investment Insurance (Trade Insurance Division, Trade and Economic
Cooperation Bureau: (a))
National Institute of Advanced Industrial Science and Technology (do. (c) )
National Institute of Technology and Evaluation (do. (c) )
8. Ministry of Land, Infrastructure and Transport
Public Works Research Institute (do. (c) )
Building Research Institute (do. (c) )National Traffic Safety and Environment Laboratory (Traffic Safety Nuisance Research Institute: (c) )
National Maritime Research Institute ( Ship Research Institute : (c) )
Port and Airport Research Institute ( Port and Harbour Research Institute : (c) )
Electronic Navigation Research Institute ( do. (c) )GPA/W/137
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Civil Engineering Research Institute of Hokkaido (Civil Engineering Research Institute: (d) )
Marine Technical College ( do. (c) )
National Institute for Sea Training ( do. (c) )
Schools for Seafarers Training ( do. (c) )
Civil Aviation College ( do. (c) )
9. Ministry of the Environment
National Institute for Environmental Studies ( do. (c) )GPA/W/137
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ATTACHMENT 2
National Agricultural Research Organization
(National Agriculture Research Center,
National Research Institute of Vegetables, Ornamental Plants and Tea,
National Institute of Fruit Tree Science,
National Institute of Animal Industry.
National Grassland Research Institute,
National Institute of Animal Health,
Hokkaido National Agricult ure Experiment Station,
Tohoku National Agriculture Experiment Station,
Hokuriku National Agricult ure Experiment Station,
Chugoku National Agriculture Experiment Station
Shikoku National Agriculture Experiment Station
Kyushu National Agriculture Experiment Station)
Fisheries Research Agency
(Hokkaido National Fisheries Research Institute,
Tohoku National Fisheries Research Institute,National Research Institute of Fisheries Science,
Japan Sea National Fisheries Research Institute,
National Research Institute of Far Seas Fisheries,
National Research Institute of Fisheries and Environment Inland Sea,
Seikai National Fisheries Research Institute,National Research Institute of Aquaculture,
National Research Institute of Fisheries Engineering)GPA/W/137
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ATTACHMENT 3
GENERAL LAW ON IAIs (EXCERPT)
Contents:
- Chapter I: General Rules
Section 1: General provisions (Article 111)
Section 2: Appraisal Committee on IAIs activities (Article 12)
Section 3: Establishment (Article 1317)
- Chapter II: Executives and Staff (Article 1826)- Chapter III: Operations
Section 1: Operations (Article 27 and 28)
Section 2: Mid-term operational target (Article 2935)
- Chapter IV: Financial Affairs and Accounts (Article 3650)
- Chapter V: Personnel Management
Section 1: Designated IAIs (Article 5160)
Section 2: Other IAIs (Article 6163)
- Chapter VI: Miscellaneous (Article 6468)
- Chapter VII: Penalties (Article 6972)- Annex
(Provision on Accounts)
Article 49:  IAIs shall, when starting their operation s, stipulate internal rules related to their accounts,
and report them to the relevant Minister responsible for each IAI.  This provision also applies when
the rules are modified.
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