WORLD TRADE
ORGANIZATIONGPA/37
20 June 2000
(00-2482)
Committee on Government Procurement Original:  English
NOTIFICATION OF NATIONAL IMPLEMENTING LEGISLATION
Communication from Japan
The attached communication has been received from the Permanent Mission of Japan in
accordance with the Committee Decision of 4 June 1996 relating to procedures for the Notification of
National Implementing Legi slation (GPA/1/Add.1).GPA/37
Page 2
1. SUMMARY OF LEGISLATION
Government Procurement in Japan has placed no restrictions on place of origin or nationality
of supplier, and has been carried out on the principle of non-discrimination, and in principle on a basis
of open tendering.  As a Party to the WTO Agreement on Government Procurement (hereinafter "theAgreement"), Japan is implementing government procurement through fair, open and transparent
procedures.
Central government entities which procure in accordance with the provisions of the
Agreement are 32 state organs, all their internal sub-divisions, independent organs, attached
organizations and other organizations and local branch offices provided for in the National
Government Organization Law.  All these entities  are covered by the Accounts Law and relevant
regulations.  Sub-central government entities listed in Annex 2 of the Agreement comprise47 prefectures and 12 cities designated by the Cabinet Order.  These entities are governed by the
Local Autonomy Law and relevant regulations.  All of these laws and regulations are consistent with
the provisions of the Agreement.
With regard to Annex 3 entities which include 70 public corporations, procedures of
procurement contracts covered by the Agreement ar e introduced into their accounting or internal
statutes.  Consistency of their procurement procedures with the Agreement is secured through
responsible ministers' control over the corporations.
The following is an outline of the major relevant laws and regulations.
A. CENTRAL GOVERNMENT
(a) "The Accounts Law" (Law No.35, March 31, 1947)
This Law stipulates the basic contents of the nation's accounting duties pertaining to
contractual duties, contractual methods, tendering methods, contractual forms and
other matters.
(b) "Cabinet Order Concerning the Budget , Auditing and Accounting" (Imperial
Ordinance 165, April 30, 1947)
"Special Provisions for the Cabinet Order Concerning the Budget, Auditing and
Accounting" (Imperial Ordinance 558, November 22, 1946)
"Regulations on the Management of Contract Administration" (Ministry of Finance
Ordinance No.52, August 20, 1962)
This Cabinet Order stipulates the detail of the rules and procedures provided for in
the Accounts Law, including the conditions for the use of selective tendering andsingle tendering.
(c) "Cabinet Order Stipulating Special Procedures for Government Procurement of
Products or Specified Services" (Cabinet Order No.300, November 18, 1980)
This Cabinet Order provides for special rules and procedures necessary to implement
the Agreement in addition to the laws and regulations mentioned in (1) and (2) above.
(d) "Ministerial Ordinance Stipulating Special Procedures for Government Procurement
of Products or Specified Services" (Ministry of Finance Ordinance No.45,
November 18, 1980)GPA/37
Page 3
This Ministerial Ordinance is applied to the procurement contracts subject to the
provisions of the Cabinet Order referred to in (3) above. The Ordinance stipulates
such specifics as information to be pub lished in "Kanpo" in the qualification
procedures, matters to be described in tender documentation and matters regarding
the notification of the determination of successful tenderers.
(e) "On the establishment of the Office of Government Procurement Review (Cabinet
Decision of 1 December 1995)
The Office of Government Procurement Review (hereinafter the "OGPR") was
established within the Prime Minister's Office to implement the provisions of the
Agreement on Government Procurement regarding challenge procedures. The
Government Procurement Review Board (the "GPRB") held under the OGPR
processes and considers complaints in a fair and neutral manner with regard to theprocurement by the entities other than sub-central government entities. The GPRB
reviews complaints in accordance with the specific procedures set out by the OGPR
by applying the provisions of the Agreement and the measures otherwise designated
by the head of the OGPR.
B. SUB-CENTRAL ENTITIES COVERED BY THE AGREEMENT
(a) "Local Autonomy Law" (Law No.67, April 17, 1947)
This Law stipulates an overview of the matters concerning the organization and
operation of local government bodies (including the rules on procurement contracts)
and the basic relations between the central government and the local governments.
(b) "Ordinance for Enforcement of the Loca l Autonomy Law" (Cabinet Order No.16,
May 3, 1947)
This Ordinance provides for the detailed  rules and procedures to implement the
provisions of the Local Autonomy Law, including matters on procurement contracts.
(c) "Cabinet Order Stipulating Special Procedures for Government Procurement of
Products or Specified Services in Local Government Entities" (Cabinet OrderNo.372, November 1, 1995)
This Cabinet Order establishes special rules and procedures necessary to implement
the Agreement on Government Procurement in addition to the laws and regulations
mentioned in (1) and (2) above.
(d) To implement the provisions of the Agreement with respect to challenge procedures,
prefectural governments and designated cities have established their respective
procedures to process complaints regarding the procurement subject to theAgreement.
2. CONTACT POINT
Requests from another Party concerning Japan's national legislation shall be addressed to:
First International Organizations Division
Economic Affairs Bureau
Ministry of Foreign AffairsGPA/37
Page 4
3. RESPONSES TO THE CHECKLIST OF ISSUES
A. GENERAL ELEMENTS
1. Has the Agreement been transposed into national law and/or does it apply directly?
The Agreement has been transposed into relevant  national laws and regulations with regard to
central and sub-central government entities.  All of those laws and regulations are consistent with the
provisions of the Agreement.  With regard to Annex 3 entities, the Agreement also has been
transposed into their respective accounting or inte rnal statutes whose consistency with the Agreement
is secured through responsible ministers' control over the corporations.
2. In the case that entities below the federal or central state level are covered:  are these
categories of entities autonomous from fede ral or central state level government in the
implementation of the Agreement?
In Japan, government procurement is conducted based on procurement contracts entered into
by each procuring entity in a decentralized manner.  Sub-central government entities as  specified in
Annex 2 of the Agreement are, therefore, autonomous from central government in the implementation
of the Agreement.
3. In the case that Annex 3 entities are covered:  are these categories of entities autonomous in
the implementation of the Agreement or do they apply the legislation provided by the federal/central
or sub-central level?
Public corporations or government-related corporations covered by the Agreement are listed
in Annex 3 of the Agreement.  Annex 3 entiti es are autonomous in the implementation of the
Agreement.  They include 70 corporations, as of October 1, 1999.  These entities are established byrelevant laws following an inspection by the Management and Co-ordination Agency, and are
endowed with proper legal personality.  Laws establishing these corporations provide for ministerial
general control over the entities.  Consistency of the procedures for procurement contracts with the
Agreement is therefore secured through the ministerial general  control over them.
4. Which main differences  (if any) exist between the implementing laws at the federal or central
level, the sub-central level and for Annex 3 entities?
The central level, the sub-central level and Annex 3 entities have their respective procurement
procedures.  However, there are no significant differences in their procurement procedures which are
fully consistent with the provisions of the Agreement.
5. To what extent is information technology us ed in the process of government procurement?
With a view to facilitating access to information on government procurement, an electronic
data base containing the information published in accordance with paragraphs 1 and 9 of Article IX,paragraph 1 of Article XVIII and paragraph 1 of Article XIX, is available, either at such places as
local branch offices and Business Support Center of Japan External Trade Organization (JETRO)
Information Service Division or through on-line information and data base retrieval services
(http://www.jetro.go.jp/).
B. SPECIFIC ELEMENTS
6. Identify the specific provisions in your legislation which reflect the national treatment and
non-discrimination commitments of Article III of the Agreement.GPA/37
Page 5
The procedures regarding government procurement under the Accounts Law do not provide
for the restriction of the qualification for participation in tendering procedures on the basis of the
nationality of the suppliers, or the country of production of the good or provision of service.
Therefore, there are no provisions in our legislation which restrict the participants on the basis of the
nationality or the country of production. Our legislation observes the national treatment and non-discrimination commitments of the Agreement.
The Local Autonomy Law and relevant regulations regarding sub-central government entities,
from a viewpoint of ensuring fairness and strict neutrality, equal opportunity and economic advantage,
basically provide for such procurement procedures in line with the national treatment and non-
discrimination commitments of the Agreement. Furt hermore, the Cabinet Order Stipulating Special
Procedures for Government Procurement of Products or Specified Services in Local Government
Entities prohibits sub-central government entities from restricting the participants in tenderingprocedures on the basis of the place of their business offices.
7. Article IX:2 of the Agreement foresees that the invitation to participate may take the form of a
notice of proposed procurement.  If your implemen ting legislation provides for this opportunity, give
details.
According to the implementing legislation with respect to central government entities, the
invitation to participate shall take the form of a notice of proposed procurement.  Where specified
procurement contract shall be subject to open tendering procedures, Article 74 of the Budget
Settlement of Account and Accounting Regulations as read in accordance with Article 5 of the
Cabinet Order Stipulating Special Procedures for Government Procurement of Products or Specified
Services, which provides that the information of the procurement shall be notified by Kanpo not laterthan forty days from the day before the deadline for submission of tenders.
Where selective tendering procedures are to be adopted for a specified procurement contract,
Article 7 of the Cabinet Order provides that a notice of the proposed procurement shall be published
as in cases covered by Article 74 of the Regulations as read in accordance with Article 5 of the
Cabinet Order.
Article 167-6 of the Ordinance for Enforcement of the Local Autonomy Law, as well as
Articles 6 and 7 of the Cabinet Order Stipulating Special Procedures for Government Procurement of
Products or Specified Services in Local Government Entities, provide for the qualification for the
participation in tendering procedures, those items to be noticed regarding the tendering procedures,
and others.
These provisions premise that the invitation to participate in tendering procedures takes the
form of a notice of proposed procurement.
8. Article IX:3 of the Agreement foresees that entities at the sub-central level as well as Annex 3
entities  may use a notice of planned procurement or a notice regarding a qualification system as an
invitation to participate.  If your  implementing legislation provides for this opportunity, give details.
Our implementing legislation does not provide for such opportunity for sub-central
government entities as well as central government entities.
Annex 3 entities follow the same guidance in  noticing procurement procedures, including
such items as a notice of planned procurement, as the central government entities do.
9. In the case of selective tendering procedures:  to what extent are entities allowed to use
permanent lists of suppliers or is there a requirement for lists of suppliers to be selected on a
contract-by-contract basis?GPA/37
Page 6
Article 4 of the Cabinet Order and Article 95 of the Regulations provide that the contracting
officer, etc., must draw up a list of parties who m eet the qualifications for participation in selective
tendering procedures when the conclusion of a specific procurement contract by selective tendering
procedures is foreseen.  Thus permanent lists of suppliers are used in the case of selective tendering
procedures.
Sub-central government entities are not prohibit ed from using permanent lists of suppliers in
the case of selective tendering procedures.
10. Article XIV of the Agreement allows for negotiation under certain conditions.  Are entities
allowed to proceed to negotiations?  If so, which categories and what are the conditions imposed?
The negotiation mentioned in Article XIV of the Agreement is not allowed in the procedures
regarding government procurement under the Accounts Law and the Local Autonomy Law.
11. Article XI contains the time-limits for tendering and delivery.  Time-limits shall normally be
"not less that X days".  Does the domestic legislat ion reflect the various minimum time-limits as set
out in the Agreement?  If not, give information on any longer time limits which have been established.
Cabinet Order Stipulating Special Procedures for the Government Procurement of Products or
Specified Services requires all central governme nt entities to comply with the time-limits for
tendering set out in Article XI.
The Ministry of Home Affairs, with official notice (November 1, 1995), requests sub-central
government entities covered by the Agreement to comply with the time-limits for tendering set out in
the Article.
As a voluntary measure to increase access opportunities for foreign suppliers to the Japanese
market with regard to the procurement of products and services by the central government and Annex
3 entities, the Government of Japan extends, in principle, the period for the receipt of tenders from the
date of a public notice for invitation to tender to 50 days (except construction services and design and
consulting services).
12. To what extent does the implementing legislation allow entities, in pursuance of Article XII:1,
to permit  tenders to be submitted in several languages (one of which has to be a language of the
WTO)?  To what extent do entities use this flexibility?
In Japan, Japanese is the only official language.  In tendering procedures, therefore, tenderers
are required to submit tenders in Japanese, while there is no explicit reference to the language of
tender submission in the implementing legislation.
C. CHALLENGE PROCEDURES - ARTICLE XX
13. Paragraph 3 of Article XX requires each Party to provide its challenge procedures in writing
and make them generally available.  Please provide this information.
The Japanese Government established the Office of Government Procurement Review
(OGPR) by the Cabinet Decision on December 1, 1995.  The  head of the OGPR is the Chief Cabinet
Secretary and other members are the vice-ministers of ministries and agencies.
The OGPR decided “the Review Procedures for Complaints concerning Government
Procurement” on December 14, 1995.  These procedures were published on the Official Gazette.Also, the procedures were communicated to all parties through the WTO Secretariat.  The most recentGPA/37
Page 7
version of such communication is “Review Procedures for Complaints concerning Government
Procurement in Japan (GPA/W/90).”  This document is available through internet homepage of WTO.
In addition, all relevant information including the Procedures is generally available through
the Economic Planning Agency's internet homepage: http:/www.epa.go.jp/access/english/
chance_main_e.html/
14. To the extent that this information does not fully respond to the following points, please
provide the supplementary information necessary to do so.
As explained above, all information is already generally available.  However, we provide
specific answers to all the questions for the Parties' convenience.
(i) The time-limit to launch a complaint contained in the Agreement is "not less than
10 days".  What are the limits in domestic legislation?
The time limit to launch a complaint is no t less than 10 days from when the basis of
the complaint is known or should reasona bly have been known to the supplier.
(Review Procedures for Complaints Concerning Government Procurement 4. (1))
(ii) What body is responsible for the challenge procedures?  Is this a "court" or an
"impartial and independent review body"?   If the latter:
- How are its members selected?
- Are its decisions subject to judicial review?
- If not, how are the requirements of paragraph 6 of Article XX taken into 
account?
The Government Procurement Review Board is established and it is an impartial and
independent review body with no interests in the outcome of the procurement.
The Chief Cabinet Secretary who is the head of OGPR designates the members of the
Board.  The Board is composed of scientists, scholars, and other members with
experience in government procurement.
The decisions are not subject to judicial review.
However, the Board has the procedures listed in (a) to (g) of paragraph 6 of
Article XX.
(iii) What is the applicable law by reference to which the challenge body will examine
complaints?
The Board examines complaints whether the procurement is made in accordance with
the Agreement.
In addition to its obligations under the Agreement, Japan has established voluntary
measures incorporating more positive steps in the areas of government procurementof supercomputers, computer products a nd services, non-research & development
satellites, telecommunications products and services, medical technology products
and services and construction services.  The Board makes reference to all theseGPA/37
Page 8
voluntary measures (Please see attachment 1).  These measures are available through
the internet homepage introduced above.
(iv) Which rapid interim measures are provided to correct breaches of the Agreement and
to preserve commercial opportunities?
- Do these measures include the possibility to suspend the procurement
process?  On what conditions?
In the case of a complaint prior to contract  execution, the Board shall, in principle,
promptly issue a written request to the procuring entity within 10 days of the filing
that contract execution should be suspended pending resolution of the complaint.
In the case of a post-execution complaint filed within 10 days of the contract
execution, the Board shall, in principle, promptly issue a written request to the
procuring entity that contract performance should be suspended pending resolution ofthe complaint.
However, when the Board determines that urgent and compelling circumstances do
not allow it to issue such request to the pr ocuring entity, the Board shall immediately
provide written notification of its decision with reasons to the complainant and the
OGPR.
In addition, the procuring entity shall suspend the execution or performance of the
contract immediately upon receiving the Board' s request.  If, however, the head of the
procuring entity determines that he or she cannot obey the request due to urgent and
compelling circumstances, the procuring entity may fail to suspend but shall
immediately provide written notification of its decision with reasons to the Board.
(v) How do challenge procedures provide for correction of the Agreement?  What types
of compensation for loss or damages suffered can the challenge body order?
Where the Board finds that any provision of the Agreement or other measures were
not followed, the Board shall accompany the report with written recommendations
concerning appropriate remedies, which may include one or more of the following:
- that new procurement procedures be conducted;
- that re-procurement be conducted without changing conditions for procurement;
- that the procurement be re-evaluated;
- that the contract be executed with a different supplier;
- that the contract be terminated.
There is no financial compensation for loss or damages suffered.
(vi) Give any available information on the time periods for the stages of the challenge
process, including to obtain interim measures and a final decision.
Persons or bodies wishing to file a complaint may do so with the Board within ten
(10) days after the basis of the complaint is known.  The Board will examine
complaints received within seven (7) working days of filing and determine whetherGPA/37
Page 9
they will be accepted for review.  If a complaint is accepted for review, the Board will
immediately notify the complainant, OGPR, and the procuring entity of this in
writing and publicly announce its decision through the Official Gazette, the Internet,
and other means, soliciting the attendance of participants with interests in the
complaint.  The procuring entity is required  to present a report to the Board; if the
complainant or the participants disagree with this report, they may present statements
to the Board or request a review by the Board, which the Board will subsequently
undertake.  Finally, a report by the Board on findings will be drawn up within ninety
(90) days in case of standard review.  This period can be shortened if the complainant
or the procuring entity desire.  This time limit may also vary according to the type of
procurement.  If the Board finds that procurement has been carried out in a manner
inconsistent with any provision of the Agreement on Government Procurement orother applicable measures, it will draw up recommendations with the report.  The
procuring entity is required, as a rule, to follow the recommendations of the Board.
(Please see the attachment 2.)
(vii) What are the usual costs to conduct a challenge procedure? Are there possibilities
foreseen to do so free of charge?
The board requires no charge.GPA/37
Page 10
ATTACHMENT 1
Designation of Applicable Measures Government Procurement
(Provisional Translation)
14 December 1995
Amended:  1 April 1997
Decision of te Head of the OGPR
Under the provisions of 2.(1) of "Establishment of the Office of Government Procurement
Review (Cabinet decision, 1 December 1995), I hereby  designate the following measures to apply in
relation to government procurement, in addition to the Agreement on Government Procurement.
1. Revised Procedures to Introduce Supercomputers (adopted by the Committee for Drawing Up
and Promoting the Action Program, on 19 April 1990);
2. Procedures for the Procurement of Non-R&D Satellites (adopted by the Committee for
Drawing Up and Promoting the Acton Program, on 14 June 1990);
3. The Common Understanding on Government Procurement (adopted by the Committee for
Drawing Up and Promoting the Action Program, on 19 November 1991);
4. The Additional Measures of the Government of Japan on Major Projects Arrangements
(approved by the Cabinet, on 26 July 1991);
5. Measures Related to Japanese Public Sector Procurement of Computer Products and Services
(adopted by the Committee for Drawing Up and Promoting the Action Program, on 20 January 1992);
6. Action Plan on Reform of Bidding and Contract Procedures for Public Works (approved by
the Cabinet, on 18 January 1994);
7. Procedures for Government Procurement on Products (Operational Guidelines) (adopted by
the Committee for Drawing Up and Promoting the Action Program, on 28 March 1994);
8. Measures on Japanese Public Sector Procurement of Telecommunications Products and
Services (adopted by the Committee for Drawing Up and Promoting the Action Program, on
28 March 1994);
9. Measures on Japanese Public Sector Procurement of Medical Technology Products and
Services (adopted by the Committee for Drawing Up and Promoting the Action Program, on28 March 1994);
10. Operational Guidelines with respect to Measures on Japanese Public Sector Procurement of
Telecommunications Products and Services (adopted by the Committee for Drawing Up and
Promoting the Action Program, on 7 October 1994);
11. Operations Guidelines with respect to Measures on Japanese Public Sector Procurement of
Medical Technology Products and Services (adopted by the Committee for Drawing Up and
Promoting the Action Program, on 7 October 1994);
12. On the Range of Application of Review Procedures to Introduce Supercomputers (adopted by
the Committee for Drawing Up and Promoting the Action Program, on 27 March 1995);GPA/37
Page 11
13. On the Introduction of the Overall Greatest Value Methodology in Japanese Public Sector
Procurement of Computer Products and Services  (adopted by the Committee for Drawing Up and
Promoting the Action Program, on 27 March 1995);
14. The Common Understanding on Government Procurement of Services (adopted by the
Committee for Drawing Up and Promoting the Action Program, on 11 December 1995);
15. Operational Guidelines with respect to the Action Plan on Reform of Bidding and Contract
Procedures for Public Works (approved by the Vice Ministers' Conference on Cabinet, on 17 June
1996).
(Note) As far as article 15 above is concerned, the complaint may be filed concerning the procurement
value over thresholds or mentioned in the article 4 and 7 in the "Operational Guidelines with respect
to the Action Plan on Reform of Bidding and Contract Procedures for Public Works."  If the
procurement is subject to the procedures in the article 4 and 7 in this Operational Guideline, theprocurement is regarded as the case of the "Public Invitation Proposal Procedures" or "Public
Invitation Competitive Bidding Procedures" when the article 2.(1)iii. in the "Review Procedures for
Complaints Concerning Government Procurement" (Decision by the OGPR, on 14 December 1995) is
applied.GPA/37
Page 12
ATTACHMENT 2
Procedures for Complaint Review (Standard Review)
Timeline
(1) Complaint indicates intention of making a complaint(2) Consultation with procuring entity (voluntary)
Day 0 (day from which countdown begins)
(3) A complaint is filed into the Board
- (4) The Procuring Entity, and OGPR are notified
Within 7 days
(5) The Board determines whether to accept the complaint
- (6) The Complainant, the Procuring Entity, and OGPR are notified
(7) Public notice that the complaint has been accepted
(Participants are invited to attend Board meeting)
Within 10 days
(8) The Board requests that the execution or performance of the contract should be
suspended (within 10 days from (3))
- (9) if the Procuring Entity does not comply, it must state its reasons to the
Board
- (10) The Board sends a copy of the reasons to the Complainant
15 days later
(11) Participants are determined (deadline for receipt of applications, within 5 days from
(7))
Within 21 days
(12) The Procuring Entity submits its report to the Board (within 14 days from (4))
- (13) The Board sends a copy of the report to the Complainant and
Participants
Within 28 days
(14) Statements from the Complainant and the Participants, or request for examination by
the Board (within 7 days from (13))
(15) Review of complaint begins
Within 90 days
(16) Report and recommendations drawn up by the Board
Within 91 daysGPA/37
Page 13
(17) Report and recommendations sent to the Complainant and the Procuring Entity
(Within one working day from (16))
Within 101 days
(18) The Procuring Entity sends the Board its reasons for non-compliance with the Board's
recommendations (Within 10 days from (17))
(Note) Different time-periods may be applied to ce rtain types of government procurement.  Therefore,
the Review Procedures for Complaints Concerning Government Procurement should be checked in
detail.
__________