WT/DS590/1, G/L/1325  
G/TFA/D3/1, G/TRIMS/D/45  
S/L/431, IP/D/42  
 
16 September 2019  
(19-5900) Page: 1/5 
  Original: English  
 
JAPAN – MEASURES RELATED TO THE EXPORTATION OF  
PRODUCTS AND TECHNOL OGY TO KOREA  
REQUEST FOR CONSULTA TIONS BY THE REPUBLIC OF KORE A 
The following communication, dated  11 September 2019 , from the delegation of the Republic of 
Korea  to the delegation of Japan , is circulated to the Dispute Settlement Body in accordance with 
Article 4.4 of the DSU.  
 
_______________  
 
 
1. Upon instructions from my authorities, and on behalf of the Government of the Republic of 
Korea ( "Korea "), I hereby request consultations with the Government of Japan ( "Japan ") pursuant 
to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994  ("GATT 1994 "), 
Article 24 of the Agreement on Trade Facilitation  ("TFA"), Article 8 of the Agreement on 
Trade -Related Investment Measures  ("TRIMs Agreement "), Article XXIII of the General Agreement 
on Trade in Services  ("GATS "), and Article 64.1 of the Agree ment on Trade -Related Aspects of 
Intellectual Property Rights  ("TRIPS Agreement ") regarding certain  measure of Japan restricting 
exports of fluorinated polyimide, resist polymers and hydrogen fluoride , and their related 
technologies destined for Korea.   
2. Korea considers  that this  measure is inconsistent with Japan 's obligations under various  
provisions  of the covered agreements.  
3. Korea 's request also concerns any amendments, reviews, or extensions of this measure, as 
well as any laws, regulations or administrative decisions closely related to the challenged measure  
identified in more detail below.  Korea 's request also concerns any and al l individual export licenses 
granted or denied by Japan in connection with the measure identified herein.  
4. Below , Korea  identifies the measure at issue and indicates the legal basis for its complaint.  
I. IDENTIFICATION OF TH E MEASURE  
5. On 1 July 2019, the Min istry of Economy, Trade and Industry of Japan ( "METI") announced1 
that it would  apply different  licensing policies and procedures on the export and transfer of certain 
controlled products  and their relevant technologies destined for Korea based on Article 25(1) and 
Article 48(1) of the Foreign Exchange and Foreign Trade Act of Japan.2 
6. In accordance  with the announcement, with effect from 4 July 2019, Japan began subjecting 
three specific p roducts and their related technologies to unduly  stringent export licensing policies 
and procedures whenever export of such products and technologies are destined for  Korea (the 
"Amended Export Licensing Policies and Procedures ").  These specific products are (i) fluorinated 
                                                
1 "Update of METI 's licensing policies and procedures on exports of controlled items to the Republic of 
Korea " (1 July 2019, Ministry of Economy, Trade and Industry) < 
https://www.meti.go.jp/english/press/2019/0701_001.html  >. 
2 Kanpou (Official Gazette) Gougai No. 135 (1 December 1949).  WT/DS590/1 • G/L/1325 • G/TFA /D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42  
 
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  polyimide;3 (ii) resist polymers;4 and (iii) hydrogen fluoride.5  These products are used primarily in 
the production of smartphone and TV displays and of semiconductors.   
7. Japan  alleged that it had "recently found that certain sensitiv e items have been exported to 
Korea with inadequate management by companies "6 and that it was thus necessary to apply more 
stringent export licensing procedures in relation to these products and their relevant technologies.7  
However, Korea considers that the changes to Japan 's export control treatments  vis-à-vis Korea 
have been based instead on political considerations unrelated to any legitimate export control 
considerations with respect to Korea or to the three identified  products.8  In Korea 's view, the 
implementation  of the Amended Export Licensing Policies and Procedur es constitute s politically -
motivated, disguised restrictions on trade.  
8. Japan 's Amended Export Licensing Policies and Procedures have been implemented by certain 
amendments to the following four notifications:9  
                                                
3 Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended 
Table 1 of the Export Control Order and the Appended Table of the Foreign Exchange Order (Ordinance of the 
Ministry of International Trade and Industry No. 49 of 1991), Kanpou (Official Gazette) Gougai No. 151 
(14 October 1991), Article 4(xiv)(b).  This product  is classified within Export Control Classification Number 
("ECCN ") 1C00 9.b under the US Export Administration Regulations ( "EAR"), to which the Japane se export 
control regulation refers.  
4 Ordinance of the Ministry Specifying Goods and Technologies Pursuant to Provisions of the Appended 
Table 1 of the Export Control Order and the Appended Table of the Foreign Exchange Order (Ordinance of the 
Ministry of  International Trade and Industry No. 49 of 1991), Kanpou (Official Gazette) Gougai No. 151 
(14 October 1991), Article 6(xix).  These products  are broadly classified within ECCN 3C002 under the US EAR, 
to which the Japanese export control regulation refers . 
5 There is no additional definition of hydrogen fluoride under Japan 's export control regulation, but this 
product  (also identified under C.A.S. #7664 -39-3) is classified within ECCN 1C350.d.10 under the US EAR.  
Ordinance of the Ministry Specifying Good s and Technologies Pursuant to Provisions of the Appended Table 1 of 
the Export Control Order and the Appended Table of the Foreign Exchange Order (Ordinance of the Ministry of 
International Trade and Industry No. 49 of 1991), Kanpou (Official Gazette) Gou gai No. 151 
(14 October  1991), Article 2(1)(i)(f).  
6 "Update of METI 's licensing policies and procedures on exports of controlled items to the Republic of 
Korea " (1 July 2019, Ministry of Economy, Trade and Industry) < 
https://www.meti.go.jp/english/press/2019/0701_001.html  >; "Regarding the Notification ( tsuutatsu ) to 
amend parts of notifications including the 'Notification ( tsuutatsu ) on the implementation of the Export Trade 
Control Order '" (1 July 2019, Security Export Licensing Division, Ministry of Economy, Trade and Industry) 
<  https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_gaiyo.pdf > 
7 "Regarding the Notification ( tsuutatsu ) to amend parts of notifications including the 'Notification 
(tsuutatsu ) on the implementation of the Export Trade Control Order '" (1 July 2019, Security Export Licensing 
Division, Ministry of Economy, Trade and Industry) <  
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_gaiyo.pdf > 
8 https://www.r euters.com/article/southkorea -japan -laborers/japans -seko-says-export -curbs -for-
skorea -not-in-violation -of-wto-rules-idUSL4N2422V4  
9 "Regarding the Notification ( tsuutatsu ) to amend parts of notifications including the 'Notification 
(tsuutatsu ) on the imple mentation of the Export Trade Control Order '" (1 July 2019, Security Export Licensing 
Division, Ministry of Economy, Trade and Industry)  <  
https://www.meti.go.jp/polic y/anpo/law_document/tutatu/190701_gaiyo.pdf   >; Notification ( tsuutatsu ) to 
amend parts of notifications including the 'Notification ( tsuutatsu ) on the implementation of the Export Trade 
Control Order ' (dated 1 July 2019, Trade and Economic Cooperation Bureau Notification No. 2 of 25 June 2019 
/ Export Caution No. 28 of 2019) < 
https://www.meti.go.jp/policy/anpo/law _document/tutatu/190701_jyobun.pdf  >, which amended four 
Notifications:  Notification ( tsuutatsu ) on the implementation of the Export Trade Control Order (dated 
6 November, 1987, Trade and Economic Cooperation Bureau Notification No. 322 of 1987 / Export C aution 
No. 11 of 1987) < https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_1.pdf  >; Notification 
(tsuutatsu ) on licensed technology transfer conducted in confor mity with the provisions of Article 25(1) of the 
Foreign Exchange and Foreign Trade Act and Article 17(2) of the Foreign Exchange Order (dated 
21 December  1992, Trade and Economic Cooperation Bureau No. 492 of 1992) < 
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_2.pdf  >; Notification ( tsuutatsu ) on 
guidelines for bulk licenses (dated 25 February 2005, Trade and Economic Cooperation Bureau Notification 
No. 1 of 23 February 2005 / Export Caution No. 7 of 2005) < 
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_3.pdf  >; Notification ( tsuutatsu ) on 
documents and cauti ons for application for export license, service transaction license and export license for 
specific recorded media (dated 2 April 2012, Trade and Economic Cooperation Bureau Notification No. 1 of 
23 March 2012 / Export Caution No. 18 of 2012) < 
https://www.meti.go.jp/policy/anpo/law_document/tutatu/190701_4.pdf   >.       WT/DS590/1 • G/L/1325 • G/TFA/D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42  
 
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  • Notification  (tsuutatsu ) on the implementati on of the Export Trade Control Order (dated 
6 November, 1987, Trade and Economic Cooperation Bureau Notification No. 322 of 
1987 / Export Caution No. 11 of 1987);  
• Notification  (tsuutatsu ) on licensed technology transfer conducted in conformity with the 
provisions of Article 25(1) of the Foreign Exchange and Foreign Trade Act and Article 17(2) 
of the Foreign Exchange Order (dated 21 December 1992, Trade and Economic 
Cooperation Bureau No. 492 of 1992);  
• Notification  (tsuutatsu ) on instructions  for bulk licenses (dated 25 February 2005, Trade 
and Economic Cooperation Bureau Notification No. 1 of 23 February 2005 / Export Caution 
No. 7 of 2005); and  
• Notification  (tsuutatsu ) on documents and instructions  for application for export license, 
service transaction license and export license for specific recorded media (dated 
2 April 2012, Trade and Economic Cooperation Bureau Notification No. 1 of 23 March 2012 
/ Export Caution No. 18 of 2012).  
9. Pursuant to the Amended Export Licensing Policies and Procedures , Japan has removed Korea 
from the category "Region I ①" and placed it alone in the newly established category "Region Ri".  
As a result, (i) "bulk licenses " are no longer applicable to the three identified products when the 
export of such products and their related technologies are destined for Korea; (ii) all previously 
granted "bulk licenses " for the three identified products and their related technologies d estined for 
Korea  were effectively terminated; (iii) exporters of the three identified products and their related 
technologies can now  apply for export licenses on individual contract basis  only (as Japan defines, 
"individual export licenses ") when such ex ports are destined for Korea; (i v) the licensing procedures 
for exports of the three identified products and their related technologies when such exports are 
destined for Korea  are now administered exclusively by  METI's Security Export Licensing Division; 
and (v) METI subjects  exporters seeking to export the three identified products and their 
technologies to Korea to unduly complex and burdensome export formalities .10   
10. In sum, no  form of "bulk license " is applicable to export of the three identified produc ts and 
their related technologies when destined for  Korea.  Applications for individual export licenses are 
placed under increased scrutiny, causing unnecessary delay and other serious restriction s to the 
exportation of these products and their related tec hnologies destined for Korea.   Moreover, the 
Amended Export Licensing Policies and Procedures  effectively restrict various other forms of 
international trade, including investments, licensing or other transfer of intellectual properties, and 
supply of cert ain services relating to the technology transfer.   
II. LEGAL BASIS  
11. Korea considers  that Japan 's implementation  of its  Amended Export Licensing Policies and 
Procedures  is inconsistent with Japan 's obligations under various provisions of the covered 
agreements . Specifically, the Amended Export Licensing Policies and Procedures  are inconsistent 
with: 
• Article I of the GATT 1994  because , with respect to all rules and formalities in connection 
with exportation, Japan fails to accord immediately and unconditionally any advantage, 
favor, privilege or immunity granted to products destined for other countries to like 
products destined for Kor ea.  In particular, Japan no longer allows "bulk licenses " when 
the exportation of the three identified products and their related technologies are destined 
for Korea while not imposing similar restrictions  on the exportation of the like products 
destined for other  WTO Members.    
• Article XI:1 of the GATT 1994  because the Amended Export Licensing Policies and 
Procedures  constitute restrictions other than a duty, tax or other charge, that is made 
                                                
10 For hydrogen fluoride, simplified export formalities applicable to exports destined for countries place d 
in the category "Region I ①" are no longer applicable to exports destined for Korea.  For fluorinated polyimide 
and resist,  simplified export formalities applicable to exports destined for countries placed in the category 
"Region To ①" are no longer applicable to exports destined for Korea for the sole reason that Korea is now 
placed in the category "Region Ri". WT/DS590/1 • G/L/1325 • G/TFA /D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42  
 
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  effective throu gh an export license on the exportation or sale for export of the three 
identified products and their related technologies destined for Korea.    
• Articles XIII:1 and XIII:5 of the GATT 1994  because Japan no longer allows "bulk licenses " 
when the exportatio n of the three identified products and their related technologies are 
destined for Korea while the exportation of like products destined for third countries is not 
similarly restricted.   
• Article VIII of the GATT 1994 and Articles 6 and 10 of the TFA  becau se Japan 's Amended 
Export Licensing Policies and Procedures  impose unduly burdensome and complex 
administrative formalities , and excessive fees and charges.  
• Article X of the GATT 1994, as well as Article 2 of the TFA  because Japan fails to administer 
its laws, regulations, decisions, and rulings of general application relating to the 
restrictions on exports in a uniform, impartial and reasonable manner.  Furth ermore, Japan 
implemented  the Amended Export Licensing Policies and Procedures  only three days after 
they were announced on its website, without providing Korea with an adequate opportunity 
for comment and consultation.   
• Articles 7 and 8 of the TFA  becaus e by unilaterally and abruptly implementing the Amended 
Export Licensing Policies and Procedures , Japan fail s to provide for additional trade 
facilitation measures for authorized operators based on objective criteria ; create s arbitrary 
or unjustifiable dis crimination between operators where the same conditions prevail ; and 
fails to ensure that its agencies responsible for border controls and procedures relating to 
exportation cooperate with Korea and coordinate mutual activities in order to facilitate 
trade .  
• Article 2 of the TRIMs Agreement  because the Amended Export Licensing Policies and 
Procedures  constitute  an investment measure related to trade in goods, which is 
inconsistent with the provisions of Article XI of the GATT 1994.  
• Article s 3.1 and 4 of the  TRIPS Agreement , because by creating certain obstacles for 
Korean nationals concerning the transfer of the technologies related to the three identified 
products, which are not faced by Japanese nationals or nationals of certain other WTO 
Members, Japan ha s failed to accord to Korean nationals treatment no less favorable than 
that accorded to Japan 's own nationals and nationals of any other country with regard to 
the protection of the intellectual property related to the three identified products.   
• Article 28.2 of the TRIPS Agreement , because Japan fails to ensure patent owners ' rights 
to assign or o therwise transfer the patent and to conclude relevant licensing contracts in 
relation to the three  identified products.  
• Article s VI:1 and VI:5 of the GATS , because Japan fails to administer its laws, regulations, 
decisions, and rulings of general applicati on affecting trade in services in a reasonable, 
objective  and impartial manner.  Furthermore, the Amended Export Licensing Policies and 
Procedures  nullify or impair Japan 's specific commitments in a manner more burdensome 
than necessary to ensure the quali ty of the relevant service, or in a manner that 
constitutes a restriction on the supply of the relevant service.  
• Article XVI:4 of the Marrakesh Agreement Establishing the World Trade Organization  
because Japan, through the implementation  of the Amended Export Licensing Policies and 
Procedures , is not ensuring the conformity of its laws, regulations and administrative  
procedures with its obligations as provided in the covered  agreements.  
12. In addition to, and independently of, the multiple violation s of obligations under the 
GATT  1994 identified  above, Korea considers that benefits accruing to Korea directly and indirectly 
under the GATT 1994 are being nullified and impaired as a result of implementation  of the Amended 
Export Licensing Policies and P rocedures , within the meaning of Article  XXIII:1(b) of the GATT 1994.  WT/DS590/1 • G/L/1325 • G/TFA/D3/1 • G/TRIMS/D/45 • S/L/431 • IP/D/42  
 
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  III. CONCLUSION  
13. In light of the foregoing, Korea considers that Japan 's Amended Export Licensing Policies and 
Procedures  nullify or impair the benefits accruing to Korea directly or indirectly under the covered 
agreements , or impede the objectives of these agreements .   
14. Korea reserves the right to address additional measures and claims under other provisions of 
the covered agreemen ts regarding the above matters during the course of the consultations.  
15. Korea looks forward to receiving Japan 's reply to this request and to fixing a mutually 
acceptable date for consultations . 
 
 
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