WORLD TRADE
ORGANIZATIONS/WPDR/W/6
19 May 2000
(00-2063)
Working Party on Domestic Regulation Original:  English
COMMUNICATION FROM JAPAN
Report of the Results of Research on Professional Services
The following communication has been received from the delegation Japan with the request
that it be circulated to the Members of the Working Party on Domestic Regulation.
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1. Japan has conducted a national research on the basis of the papers submitted by the
Delegation of Hong Kong, China (Job Nos. 2784, dated 12 May 1999, and 3547, dated 21 June 1999),
on which a consensus was reached at the Second Formal Meeting of the Working Party on DomesticRegulation of 14 July 1999, with regard to a voluntary consultation process for potentially applying
the accountancy sector disciplines ( cf. doc. S/L/64, adopted by the Council for Trade in Services on
14 December 1998) to all domestic professional associ ations across the professional services sector as
a whole.
A. E
LEMENTS OF THE RESEARCH INCLUDED
− A list of the qualified professionals in Japan, other than the certified public accountants
(konin-kaikeishi ), was drawn up as per Annex 1 attached.
− A questionnaire was distributed to both the supervising and other related ministries and
agencies within the government, as well as to the professional associations through theirintermediary.  There were, however, cases where no appropriate associations could be found.
− The ministries, agencies and professional associations having submitted comments are
contained in Annex 2 attached.  The result of the research is reported hereafter as a simple
compilation of the individual comments from such ministries, agencies and professionalassociations, with no attempt being made at establishing an integrated common view within
the government.  Since the comments, spelt out ei ther in general or in specific terms, do not
come from one particular ministry, agency or professional association, these may lack
consistency.
B. G
ENERAL COMMENTS  (CF. DOCUMENT S/L/64)
2. Opinion 1: In the case where sub-federal governments, such as in provinces or states,
have the ability to establish regulations containing different criteria, certain disciplines should
be established to encourage Members to harmonise, as far as possible, the regulations of all
the sub-federal governments by applying the most liberal regulation of those existing.S/WPDR/W/6
Page 2
3. Opinion 2 The term "license" should be modified to read "license or registration" in
order to reflect the systems or practices of each Member.
4. [Reason]  In Japan, lawyers ( bengoshi ) and foreign legal consultants ( gaikokuho-jimu-
bengoshi ) are not subject to licensing procedures, but just to the registration system once the
qualification requirement has been cleared. The processes required to enable a qualification tobe provided entail a bar examination for lawyers ( bengoshi ) and a simple screening of foreign
legal consultants ( gaikokuho-jimu-bengoshi ) in view of approval by the Ministry of Justice.
As this does not lead to the obtaining of a licence, it is not right, as far as Japan is concerned,
to use the term "license" when referring to those legal services.
5. Opinion 3 Architectural and design services need their proper sectoral disciplines.
6. [Reason]  Like every other sector in the professional services area, which have their
own unique features and background, architectural and design services also havefundamentally different features from those of accountancy services.
7. Opinion 4 It is not appropriate to apply the accountancy disciplines (nor the revised
version thereon) to veterinary services.
8. [Reason]  Veterinary services are directly related to human life and health through
assuring the safety of animal products and by addressing issues on infectious diseases that arecommon to both humans and animals.  Moreover, it is presumed that the results of rendering
such services may affect the general public as a whole, even beyond the consumers
themselves.  It is, therefore, necessary to establish sectoral disciplines separately from those
already established for accountancy.
C. P
ARAGRAPH 2 (CF. DOCUMENT S/L/64)
9. Opinion 1  The phrase "(independence of professionals)" should be added after "integrity
of profession" in order to give the term a clearer meaning.
10. [Reason]  This paragraph is based on the existence of accounting principles, auditing
standards and bookkeeping principles as being the global standards.  However, taxation
systems vary from country to country according to the respective indigenous legal systemsbased on the different historical and cultural backgrounds, and no universal standard has yet
been established in the matter.  Independence, i.e. being free from interference by others, is
required by the taxation consultants ( zeirishi ) in order to be genuinely guided through the
system and the tax law in force in the country where the service is provided.
11. Opinion 2 The phrase "(which includes that of addressing natural matters which are
unique to a Member)" should be added after "professional competence".
12. [Reason]  It is necessary to make clear that the term "competence" includes that of
addressing natural disasters, including earthquakes and typhoons.
D. PARAGRAPH 5 (CF. DOCUMENT S/L/64)
13. Opinion This paragraph should be deleted.
14. [Reason]  It is not necessary to establish a system "to inform another Member, upon
request, of the rationale behind domestic measures" for that regarding legal services, seeing asa system to secure the transparency of the domestic regulations in each Member and toS/WPDR/W/6
Page 3
promote an understanding among them, has already been established.  Adding other
obligations will only increase the unnecessary administrative burden.
E. PARAGRAPH 6 (CF. DOCUMENT S/L/64)
15. Opinion 1 This paragraph should be deleted.
16. [Reason]  Since it is the Japan Federation of Bar Associations (hereinafter referred to as
"Nichibenren ") that administrates the registration system on lawyers ( bengoshi ) and foreign
legal consultants ( gaikokuho-jimu-bengoshi ), the Government of Japan is not in a position to
oblige Nichibenren  "to provide opportunity for comment" regarding regulatory measures
upon registration, nor to make a commitment on such matters on behalf of Nichibenren .
17. Opinion 2 The phrase "and give consideration to such comments" should be deleted.
18. [Reason]  It is not appropriate for Members to be obliged to give consideration to any
comments.
F. PARAGRAPH 10 (CF. DOCUMENT S/L/64)
19. Opinion The phrase,  "Where membership of a professional organization is required as
a prior condition for application for a license (i.e. an authorization to practice), …" should be
modified to read, "Membership of a profe ssional organization shall not be a licensing
requirement.  Where membership of a professional organization is required in applying for anauthorization to practice, …".
20. [Reason]  It is sheer nonsense that license holders, who do not have a business activity,
are obliged to be a member of a professional organization.
G. P
ARAGRAPH 12 (CF. DOCUMENT S/L/64)
21. Opinion Requirements for professional indemnity insurance should be limited to the
domestic regulatory requirements of each Member's jurisdiction.
22. [Reason]  Matters regarding "indemnity" vary from country to country, as the scope of
the responsibility for a tax accountant ( zeirishi ) differs.
H. PARAGRAPH 13 (CF. DOCUMENT S/L/64)
23. Opinion The last sentence, "A concessional fee for applicants from developing
countries may be considered.", should be deleted.
24. [Reason] The current legal system in Japan makes it difficult to give preferential
treatment to applicants from developing countries regarding the registration license fee as the
registration process passes through Nichibenren .  Furthermore, the Government of Japan is
not in a position to make a commitment on the amount of the entry fee levied by
Nichibenren .
I. PARAGRAPH 16 (CF. DOCUMENT S/L/64)
25. Opinion The phrase "in principle within six months" should be modified to read, "in
principle within two months".S/WPDR/W/6
Page 4
26. [Reason]  Regarding lawyers ( bengoshi ) and foreign legal consultants ( gaikokuho-jimu-
bengoshi ), the decision period is normally only two months.  In today's information
technology society, six months is considered to be unreasonably long and could provide an
obstacle for developing trade in services.
J. PARAGRAPH 19 (CF. DOCUMENT S/L/64)
27. Opinion 1 This paragraph should be deleted.
28. [Reason]  Legal services on domestic law (host country law) supplied by lawyers
(bengoshi ) should be treated separately from the same services provided by foreign legal
consultants ( gaikokuho-jimu-bengoshi ).  Regarding such legal services rendered by lawyers
(bengoshi ) on the domestic law, even foreign qualified lawyers must pass the same bar
examination as Japanese nationals (in Japanese) and should terminate the required legal
training to become qualified lawyers in Japan ( bengoshi ).  This is because a foreign lawyer's
individual qualification cannot be taken into consideration when granting an equivalent
qualification in Japan, as the domestic legal system of each country differs with no
comparability of education, experience and examination requirements existing.  Furthermore,
the rules indicating that an examination is a precondition for entrance by foreign legal
consultants into a host country are not appropriate, as no examination is required for obtaininga qualification as a foreign legal consultant in Japan.
29. Opinion 2 It is not appropriate to apply this paragraph to judicial scriveners ( shiho-
shoshi ), nor to land and house surveyors ( tochikaoku-chosashi ).
30. [Reason]  Both judicial scriveners ( shiho-shoshi ) and land and house surveyors
(tochikaoku-chosashi ) are qualified professionals whose main business is to carry out the
registration procedures requested by others with registries which are a part of the
administrative body in Japan.  In order to conduct such business, they must possess the
necessary expertise and knowledge on the laws and regulations of both civil affairs and
registration in Japan.  Japanese nationals are required to pass the respective examinations for
each profession, as conducted by the Ministry of Justice, in order to confirm a sufficient levelof such knowledge.  For the same reason, applicants from other Members also need to pass
the above examinations.  It is not appropriate to take into consideration those qualifications
achieved in the territory of another Member, based on an equivalence of education,
experience and examination requirements, since the registration and other legal systems of
each Member are not comparable.  It is, therefore, not relevant to verify the qualifications
acquired by each applicant in his own territory or that of another Member.
31. Opinion 3 It is not appropriate to apply this paragraph to judicial scriveners ( shiho-
shoshi ).
32. [Reason] The principle  activity of a judicial scrivener ( shiho-shoshi ) is to represent a
person who is in the process of applying for registration with registries which are a part of the
administrative body in Japan.  Persons wishing to run a business as a judicial scrivener
(shiho-shoshi ) in Japan need to pass the examination conducted by the Ministry of Justice to
confirm his/her expertise and knowledge of the laws and regulations concerning civil affairs
and the registration of real estates.  It is thus not appropriate to take into consideration the
qualifications acquired in the territory of another Member based on the equivalence of
education, experience and examination requirements, since the register and other legal
systems on civil affairs differ from country to country.  For the same reason, it is notnecessary to verify such external qualifications.S/WPDR/W/6
Page 5
33. Opinion 4 It is not appropriate to apply this paragraph to land and house surveyors
(tochikaoku-chosashi )
34. [Reason] The main task of land and house surveyors ( tochikaoku-chosashi ) is to carry
out the registration procedures with registries which are a part of the administrative body in
Japan.  Those who wish to run a business as a land and house surveyor ( tochikaoku-chosashi )
are required, without exception, to have adequate expertise, knowledge and capacity in the
laws and regulations on civil affairs and surveying, as well as on the registration of real
estates.  Persons from other Members wishing to run a business as a land and house surveyor
(tochikaoku-chosashi ) are, therefore, required to pass the examination conducted by the
Ministry of Justice to confirm such knowledge and capacity.  It is thus not appropriate to take
into consideration the qualifications achieved in the territory of another Member based on the
equivalence of education, experience and examination requirements.  It is also not necessaryto verify such external qualifications.
35. Opinion 5 It is not appropriate to apply these disciplines for obtaining a qualification as
an administrative scrivener ( gyosei-shoshi ).
36. [Reason] An administrative scrivener ( gyosei-shoshi ) is a qualified professional whose
main business is to draft documents concerning rights and obligations, or the certification offacts, to be submitted to the Japanese authorities.  It is thus necessary to possess adequate
knowledge on a variety of laws and regulations in Japan.  Furthermore, it would not be
appropriate to take into consideration a qualification achieved in the territory of another
Member, based on the equivalence of such requirements as education, experience and
examination, since the legal system of each Member differs. It is necessary, therefore, to passa Japanese examination before being able to qualify as an administrative scrivener ( gyosei-
shoshi ) in order to confirm possession of such knowledge on the laws and regulations of
Japan.
37. Opinion 6 The wording, "A Member shall ensure that", should be read as an
"endeavour" clause.
38. [Reason]  It is not right to make this provision obligatory since the situation in each
country differs.
39. Opinion 7 Regarding tax accountants ( zeirishi ), the qualifications achieved in another
Member cannot be deemed sufficient for meeting the qualification requirements for a tax
accountant in Japan.
40. [Reason]  National tax accounting systems greatly affect nationals, taxpayers and the
national finances as a whole.  Since the tax and tax accountant systems of each country differ,
it is not appropriate to consider a qualification achieved in another Member to be deemed
sufficient for meeting the qualification requirements for becoming a tax accountant ( zeirishi )
in Japan.
41. Opinion 8 All qualification requirements should, in principle, be the same as those of a
tax accountant ( zeirishi ) [in Japan].
42. [Reason]  Tax laws are unique to each country.S/WPDR/W/6
Page 6
K. PARAGRAPH 20 ( CF. DOCUMENT S/L/64)
43. Opinion 1 It is not appropriate to introduce any expression which regards the necessity
of an examination as a precondition.
44. [Reason]  In Japan, an examination is not imposed on foreign legal consultants
(gaiko,uho-jimu-bengoshi ) as a qualification requirement.
45. Opinion 2 The qualification requirements for a tax accountant should in principle be the
same as those required for a tax accountant ( zeirishi ) in Japan.
46. [Reason]  Tax laws are unique to each country.
47. Opinion 3 The wording, "language skills" should be deleted.
48. [Reason]  There are cases where conducting a business is feasible without necessitating
the possession of "language skills".
L. PARAGRAPH 21 ( CF. DOCUMENT S/L/64)
49. Opinion 1 This paragraph should be deleted.
50. [Reason]  When referring to the legal system  and to the practice regarding the
qualifications of lawyers ( bengoshi ) in Japan, it is by far impossible to realize how any
mutual recognition of qualifications shall be perceived in the near future.  This provision may
thus incur some misunderstanding.
51. Opinion 2 It is difficult to be able to establish mutual recognition in advance.
52. [Reason]  Tax laws are unique to each country.
M. PARAGRAPH 22 ( CF. DOCUMENT S/L/64)
53. Opinion 1 The phrase, "in principle within six months", should be modified to read, "in
principle within two months".
54. [Reason]  Regarding lawyers ( bengoshi ) and foreign legal consultants ( gaikokuho-jimu-
bengoshi ), such duration is normally limited to two months.  In today's information
technology society, six months is considered to be unreasonably long and could deter the
development of trade in services.
55. Opinion 2 It is inappropriate to apply this paragraph to judicial scriveners ( shiho-shoshi )
and land and house surveyors ( tochikaoku-chosashi ).
56. [Reason]  Judicial scriveners ( shiho-shoshi ) and land and house surveyors ( tochikaoku-
chosashi ) are qualified professionals whose main business is to carry out the registration
procedures requested by others with registries which are a part of the administrative body in
Japan.  In order to conduct such business, they must possess the necessary expertise and
knowledge on the laws and regulations of both civil affairs and registration in Japan. Japanese
nationals are required to pass the examination for land and house surveyors ( tochikaoku-
chosashi ) conducted by the Ministry of Justice to determine possession of such knowledge.
For the same reason, applicants from other Members also need to pass the above examination.
It is not appropriate to take into consideration those qualifications achieved in the territory ofS/WPDR/W/6
Page 7
another Member based on the equivalence of education, experience and examination
requirements, since both the registration system and the civil law system of each Member
differs.  It is not necessary, therefore, to verify the qualifications of individual applicants
achieved in the territory of another Member.
57. Opinion 3 It is inappropriate to apply this paragraph to judicial scriveners ( shiho-
shoshi ).
58. [Reason] The principle activity of a judicial scrivener ( shiho-shoshi ) is to represent a
person who is in the process of applying for registration with registries which are a part of the
administrative body in Japan.  Persons wishing to run a business as a judicial scrivener
(shiho-shoshi ) in Japan need to pass the examination conducted by the Ministry of Justice to
confirm his/her expertise and knowledge of the laws and regulations concerning civil affairs
and the registration of real estates.  Therefore, when granting a qualification for a judicialscrivener ( shiho-shoshi ), only the above examination needs to be passed.  It is not appropriate,
on the other hand, to take into consideration the qualifications achieved in the territory of
another Member based on  the equivalence of education, experience and examination
requirements, since the register systems and the legal systems on the civil affairs of each
Member differ.  In this context, the verification process is not necessary.
59. Opinion 4 It is not appropriate to apply this paragraph to land and house surveyors
(tochikaoku-chosashi ).
60. [Reason] The main activity of a land and house surveyor ( tochikaoku-chosashi ) is to
carry out the registration  procedures with registries which are a part of the administrative
body in Japan.  Those who wish to run a business as a land and house surveyor ( tochikaoku-
chosashi ) are required, without exception, to have adequate expertise, knowledge and
capacity in the laws and regulations on civil affairs and surveying, as well as on the legal
procedures for the registration of real estates.   It is necessary to pass the examination
conducted by Ministry of Justice to confirm such knowledge and capacity.  It is not
appropriate to take into consideration the qualifications achieved in the territory of  anotherMember based on the equivalence of education, experience and examination requirements.
The verification process is, therefore, not necessary.
61. Opinion 5 It is not appropriate to apply this paragraph for obtaining a qualification as an
administrative scriveners ( gyosei-shoshi ).
62. [Reason] An administrative scrivener ( gyosei-shoshi ) is a qualified professional whose
main activity is to prepare documents to be submitted to the Japanese authorities concerning
rights and obligations  or the certification of facts.  It is thus necessary to possess adequateknowledge on a variety of laws and regulations in Japan.  Furthermore, it would not be
appropriate to take into consideration the qualifications achieved in the territory of another
Member, based on the equivalence of such requirements as education, experience and
examination, since the legal system of each Member differs.  It is necessary, therefore, to pass
a Japanese examination before being able to qualify as an administrative scrivener ( gyosei-
shoshi ) in order to confirm a sufficiency of knowledge on the relevant laws and regulations of
Japan.
63. Opinion 6 It is not appropriate to consider that a qualification achieved in another
Member automatically meets the qualification for being a  Japanese tax accountant ( zeirishi ).
64. [Reason]  National tax accounting systems greatly affect nationals, taxpayers and  the
national finances as a whole.  Since tax and tax accountant systems of each country differ, itS/WPDR/W/6
Page 8
is not appropriate to consider that a qualification achieved in another Member will meet the
qualifications required for becoming a Japanese tax accountant ( zeirishi ).
65. Opinion 7 Due consideration is necessary when deciding which professionals in other
Members are deemed equivalent to a Japanese tax accountant ( zeirishi ).
66. [Reason]  Some Members do not distinguish the difference between a qualification for
accountancy services from that for taxation services.
N. PARAGRAPH 23 ( CF. DOCUMENT S/L/64)
67. Opinion This paragraph should be deleted.  Should deletion not be possible, at least
the following part should be removed: "This sh all not preclude the recovery of any additional
costs of verification of information, processing and examinations.  A concessional fee for
applicants from developing countries may be considered."
68. [Reason] Japan does not impose any such regular examinations on foreign legal
consultants ( gaikokuho-jimu-bengoshi ).  The current legal system in Japan makes it difficult
to give preferential treatment on fees to applicants from developing countries, at least as far as
legal services are concerned.
O. PARAGRAPH 26 ( CF. DOCUMENT S/L/64)
69. Opinion 1 This paragraph should be deleted.
70. [Reason]  As far as the tax law is concerned, there are no international standards of
relevant international organizations.
71. Opinion 2 A new sentence should be added to this paragraph stating that consideration
shall be given to the "UIA Accord on Recommended International Standards of
Professionalism in Architectural Practice", approved by International Union of Architects.This association establishes the standards for architectural services taking into account the
relevant features.S/WPDR/W/6
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ANNEX 1
LIST OF QUALIFIED PROFESSIONALS IN JAPAN
March 2000
Profession Japanese Terminology
Lawyer bengoshi
Foreign legal consultant gaikokuho-jimu-bengoshi
Judicial scrivener shiho-shoshi
Land and house surveyor tochikaoku-chosashi
Patent attorney benrishi
Gyosei-shoshi lawyer gyosei-shoshi
Maritime procedure agent kaijidairishi
Public consultant on social and labour insurance shakaihoken-romushi
Tax accountant zeirishi
Consulting engineer gijutsushi
Architect kenchikushi
Building mechanical and electrical engineer kenchikusetsubi-shikakusha
Licensed building inspector for special buildings tokushukenchikubutsutochosa-
shikakusha
Licensed inspector of elevators shokokikensa-shikakusha
Licensed inspector of building equipment kenchikusetsubikensa-
shikakusha
Waste water treatment equipment engineer jokaso-setsubishi
Construction machine operation engineer kenchikukikai-seko-gishi
Engineering operation and management engineer doboku-sekokanri-gishi
Building operation and management engineer kenchiku-sekokanri-gishi
Electrical work operation and management engineer denkikoji-sekokanri-gishi
Plumbing work operation and management engineer kankoji-sekokanri-gishi
Landscape gardening work operation and management engineer zoen-sekokanri-gishi
Veterinarian juishi
Physician ishi
Dentist shikaishi
Nurse kangofu
Pharmacist yakuzaishi
Birthcontrol instructor jutaichoseijitti-shidouin
Psychiatric social worker seishin-hoken-fukushishi
Barber riyoshi
Beautician biyoshi
Nutritionist eiyoshi
Nutritionist supervisor kanri-eiyoshi
Certified social worker shakai-fukushishi
Certified care worker kaigo-fukushishiS/WPDR/W/6
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ANNEX 2
LIST OF MINISTRIES , AGENCIES AND PROFESSIONAL ORGANIZATIONS HAVING SUBMITTED COMMENTS
Ministry, Agency, or Professional Orga nization Qualified Related Profession Japanese Terminology
Ministry of Justice Lawyer bengoshi
   (together with the Japan Federation of Bar Associations)
Ministry of Justice Foreign lawyer gaikokuho-jimu-bengoshi
   (together with the Japan Federation of Bar Associations)
Ministry of Justice Shiho-shoshi lawyer shiho-shoshi
Japan Federation of Shiho-Shoshi  Lawyers' Shiho-shoshi lawyer shiho-shoshi
  Associations
Ministry of Justice Land and house surveyor tochikaoku-chosashi
Japan Federation of Land and House Surveyors' Land and house surveyor tochikaoku-chosashi
  AssociationsMinistry of Justice Gyosei-shoshi lawyer gyosei-shoshi
Japan Federation of Gyosei-Shoshi  Lawyers' Gyosei -shoshi lawyer gyosei-shoshi
   Associations
Ministry of Finance Tax accountant zeirishi
Japan Federation of Certified Public Tax Tax accountant zeirishi
   Accountants' Associations
Ministry of Construction Architect kenchikushi
Ministry of Agriculture, Forestry and Fisheries Veterinarian juishi
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