G/STR/N/18/JPN  
 
15 September 2020  
(20-6196) Page: 1/18 
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 PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII  
JAPAN 
The following communication, dated 28 August 2020, is being circulated at the request of the 
delegation of Japan , in response to the call for notifications set forth in document G/STR/N/18 . 
 
_______________  
 
 
1  LEAF TOBACCO  
I. Enumeration of State Trading En terprises  
A. Identification of State Trading Enterprises  
Japan Tobacco Inc. (JT).  
B. Description of Products Affected ( Including  Tariff Item Number(s) Encompassed in 
Product Description)  
Leaf tobacco (HS No. 2401.10, 2401.20, 2401.30, 2403.91).  
II. Reason and Purpose  
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
The tobacco production is monopolized by JT for promoting sound development of the tobacco 
industry under the provisions of the Tobacco 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 JT.  
B. Summary of Legal Basis for Granting the Relevant Exclusiv e 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.  
III. Description of the Functioning o f the State Trading Enterprise  
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise  
JT is engaged predominantly in the manufacture and sale of tobacco products.  JT is also diversifying 
its business activities into pharmaceu ticals, food  and real estate.  G/STR/N/18/JPN  
 
- 2 - 
 
  B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
The importation of leaf tobacco and manufactured tobacco has been liberalized since 1  April 1985.  
However, as a consequence of the continuing monopoly of manufacturing tobacco by the 
Japan  Tobacco  Inc. (JT), the importation of leaf tobacco for the manufacture of tobacco in Japan is 
in effect depende nt upon the purchase by JT.  
C. Type of Entities Other than  the State Trading Ent erprise 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  
JT imports leaf tobacco on the basis of commercial consideration , taking into account supply and 
demand situations of manufactured tobacco, as well as quality, market price and other relevant 
characteristics of leaf tobacco.  
E. How Export Prices Are Determined  
JT exports leaf tobacco on the basis of commercial consideration.  
F. How the Resale Prices of Imported Products Are Determined  
JT does not res ell imported leaf tobacco.  
G. Whether Long -Term Contracts Are Negotiated by the State Trading Enterprise.  Whether 
the State Trading Enterprise Is Used to Fulfil Contractual Obligations Entered into by 
the Government  
No long -term contracts are negotiated by JT.  
H. Brief Description of Market Structure  
JT is obligated  to acquire all the leaf tobacco produced by domestic tobacco cultivators who enter 
into contracted purchase agreements with JT.  
IV. Statistical Information  
See attached Tables I – III on Tobacco.   
  G/STR/N/18/JPN  
 
- 3 - TABLE 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 
representa tive 
domestic sales 
price  Mark -up National 
production  
(tons)  
Leaf tobacco  
(HS No. 2401.10, 2401.20, 
2401.30, 2403.91 ) 2017 43,185  43,185  731 - - 19,023  
2018 39,050  39,050  707 - - 16,998  
2019 35,208  35,208  732 - - 16,798  
Source: Ministry of Finance "Japan's Trade Statistics" – JT 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  Average 
representative 
domestic sales 
price  Average export 
price  
(¥/kg .) National 
production  
(tons)  
Leaf tobacco  
(HS No. 2401.10, 2401.20, 
2401.30, 2403.91 ) 2017 5,203  5,203  - - 35 19,023  
2018 3,185  3,185  - - 49 16,998  
2019 2,262  2,262  - - 122 16,798  
Source:  Ministry of Finance "Japan's Trade Statistics" – JT Data.  
   
  G/STR/N/18/JPN  
 
- 4 - 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  National consumption  
(tons)  
Leaf tobacco  
(HS No. 2401.10, 2401.20, 
2401.30, 2403.91 ) 2017 19,023  19,023  - 55,105  
2018 16,998  16,998  - 48,641  
2019 16,798  16,798  - 48,446  
Source: JT Data.  G/STR/N/18/JPN  
 
- 5 - 
 
  2  OPIUM  
I. Enumeration of State Trading Enterprises  
A. Identification of State Trading Enterprises  
The government of Japan (The Ministry 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).  
II. Reason and Purpose  
A. Reason and Purpose  for Establishing and/or Maintaining State Trading Enterprise  
The purpose of maintaining the state trading enterprise is to achieve the rational supply of opium 
for medical and scientific purposes, as well as to conduct the necessary control over the culti vation 
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 the Ministry of Health, Labour and Welfare is authorized 
as a state trading entity  that can conduct import and export of opium, purchase opium from the 
opium poppy cultivators and from research cultivators, and sell opium to narcotics manufacturers 
and narcotics research institution.  
The monopoly o f import and export of opium is stipulated in Article 2 of the Opium Law.  
The above mentioned regulations are based on the provision of the Single Convention of Narcotic 
Drugs, 1961.  
III. 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 determines the quantity of opium which is to be imported 
to Japan, on the basis of factors such as demand for opium in Japan and sup ply of opium in exporting 
countries . 
The Ministry of Health, Labour and Welfare  has not imported opium since 2018.  
B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
The rights to import and to export opiu m belong exclusively to the Ministry of Health, Labour and 
Welfare.  
The Ministry of Health, Labour and Welfare purchases all the opium which opium poppy cultivators 
or research cultivators have gathered.  
The Ministry of Health, Labour and Welfare determine s the price for purchase of the opium from 
opium poppy cultivators, after consulting with the Ministry of Finance, on the basis of factors such 
as the condition of production by opium poppy cultivators and other economic conditions.  G/STR/N/18/JPN  
 
- 6 - 
 
  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 import and export other than the Ministry of Health, 
Labour and Welfare.  
D. How Import/Ex port Levels Are Established by the State Trading Enterprise  
The Ministry of Health, Labour and Welfare determines 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 
countries . 
E. How Export Prices Are Determined  
The Minis try 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 expenses.  
G. Whether Long -Term Contracts Are Negotiated by the State Trading Enterprise. Whether 
the State Trading Enterprise Is Used to Fulfil Contractual Obligations Entered into by 
the Government  
No long -term contracts are negotiated by the Ministry of Health, Labo ur and Welfare.  
H. Brief Description of Market Structure  
The Ministry of Health, Labour and Welfare purchases all the opium gathered by opium poppy 
cultivators or research cultivators. The Ministry of Health, Labour and Welfare sells opium to 
narcotics man ufacturers.  
IV. Statistical Information  
See attached Tables I – III on Opium.  
V. Reason Why No Foreign Trade Has Taken Place (as appropriate)  
All opium imported by 2017 has been used for medical and scientific purposes.  
All of the amount is for domestic consumption, not for export. 
  G/STR/N/18/JPN  
 
- 7 - TABLE I  
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE)  
STATISTICAL INFORMATION, IMPORTS  
Description of 
product  Fiscal Year Total quantity 
imported  
(kg.)  Quantity 
imported by state 
trading 
enterprise  
(kg.)  Average import 
price  
(¥/kg.)  Average 
representative 
domestic price 
(¥/kg.)  Mark -up National 
production  
(kg.)  
Opium  
(HS No. 13.02.11 ) 2017 36,000  
(J.F.Y. 2017) 36,000  
(J.F.Y. 2017) 9,912  23,812  - 1.1 
(J.F.Y. 2017) 
2018 0 
(J.F.Y. 2018) - - - - 0.6 
(J.F.Y. 2018) 
2019 0 
(J.F.Y. 2019) - - - - 1.1 
(J.F.Y. 2019) 
Japan Fiscal Year (J.F.Y.) is from April to March.  
TABLE II  
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE)  
STATISTICAL INFORMATION, EXPORTS  
Description of 
product  Fiscal Year  Total quantity 
exported  
(kg.)  Quantity 
exported by 
state trading 
enterprise  Average 
procurement price  Average 
representative 
domestic 
sales price  Average 
export 
price  National production  
Opium  
(HS No. 13.02.11 ) 2017 0 
(J.F.Y. 2017) - - - - 1.1 
(J.F.Y. 2017) 
2018 0 
(J.F.Y. 2018) - - - - 0.6 
(J.F.Y. 2018) 
2019 0 
(J.F.Y. 2019) - - - - 1.1 
(J.F.Y. 2019) 
Japan Fiscal Year (J.F.Y.) is from April to March.  G/STR/N/18/JPN  
 
- 8 - 
 
  3  RICE, WHEAT AND BARLEY  
I. 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 
Product 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 referred to as "barley").  For the tariff item numbers 
of specific products, see attached.  
II. Reason and Purpose  
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
MAFF is authorized to take measures to stabilize supply and demand situations as well as prices for 
such staple foods as rice, wheat and barley, for promoting stability of people 's lives  and national  
economy, according to the Law for Stabilization of Suppl y-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 is authorized to import  rice, wheat and barl ey, and is authorized to  export rice when particular 
necessity exist s, based on the Law for Stabilization of Supply -Demand and Price of Staple Food.  
Legal provisions – Articles 30, 31, 32, 42 , 43 and 44 of the Law for Stabilization of Supply -Demand 
and Pri ce of Staple Food.  
This law does not restrict the exportation of rice, wheat and barley by the private sectors.  
III. Description of the Functioning of the State Trading Enterprise  
A. Summary Statement Providing Overview of Operations of the State Trading E nterprise  
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 distrib ution of over -quota imports of rice, wheat and barley, 
except for the collection of  a part of over -quota tariffs of such imports.  
B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
MAFF is authorized to import rice, wheat and barley, and is authorized to 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, wheat and barley which are bound in the 
Schedule  XXXVIII -JAPAN in the WTO Agreement.  
This law does not restrict the exportation of rice, wheat and barley by the private sectors.  G/STR/N/18/JPN  
 
- 9 - 
 
  C. Type of Entities Other than the State Trading Enterprise that Are Allowed to Engage in 
Importation/Exportation and Conditions for Participation . 
Private traders are allowed to  freely import  rice, wheat and barley subject to over -quota tariffs 
established in the Schedule XXXVIII -JAPAN in the WTO Agreement.  
Private traders are allowed to freely export rice, wheat and barley.  
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 established  in the Schedule XXXVIII -JAPAN in the WTO 
Agreement.  
Taking into account the requests from recipient countries, the Government of Japan provides 
assistance which recipient countries use for purchasing food, based on the Food Assistance 
Convention. Using th e aforementioned assistance, the recipient countries may purchase rice from 
MAFF.  
E. How Export Pric es AAre 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 above the sum of the respective 
purchase p rices 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 Tr ading Enterprise.  Whether 
the State Trading 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 decided 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 Stabilization of Supply -Demand and Price of Staple Food.  
Most of wheat and barley consumed in Ja pan are imported.  
IV. Statistical Information  
See attached Tables I – III. 
V. Reason Why No Foreign Trade Has Taken Place 
None.  
VI. Additional Information  
None.   
  G/STR/N/18/JPN  
 
- 10 - TABLE I  
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES  
STATISTICAL INFORMATION, IMPORTS  
(Unit: 1,000 tons (Mark -up: Yen/kg))  
Description of 
products  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 
Rice FY2017 711 FY2017 709 - - - - FY201 7 91 FY201 7 8,324 
FY201 8 609 FY2018 608 - - - - FY201 8 121 FY201 8 8,208*1 
FY201 9 686 FY2019 685 - - - - FY201 9 n.a. FY201 9 n.a. 
Wheat  FY201 7 5,887 FY2017 5,762 - - - - FY201 7 17 FY201 7 907 
FY201 8 5,496 FY2018 5,479 - - - - FY201 8 17 FY201 8 765*1 
FY201 9 5,323  FY2019 5,172  - - - - FY201 9 n.a. FY201 9 n.a. 
Barley  FY201 7 1,200 FY2017 349 - - - - FY201 7 8 FY201 7 185 
FY201 8 1,231 FY2018 539 - - - - FY201 8 8 FY201 8 175*1 
FY201 9 1,165  FY2019 258 - - - - FY201 9 n.a. FY201 9 n.a. 
Note:  1. The figures with *1 in column 7 are tentative data.   
 2. For the HS numbers, see attached . 
 3. The figures of columns  6 and 7  in FY2019 are not yet available . 
 4. Data source: Ministry of Finance "Japan's Trade Statistics".  
  Ministry of Agriculture, Forestry and Fisheries "Food Balance Sheet" and related data.  
   
  G/STR/N/18/JPN  
 
- 11 - TABLE II  
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES  
STATISTICAL INFORMATION, EXPORTS  
(Unit: 1,000 tons, Yen/ton)  
Description of 
product  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 
Rice FY2017 85 FY201 7 73 FY201 7 151,234  FY201 7 180 ,111 - - FY201 7 8,324 
FY201 8 99 FY201 8 85 FY201 8 151,957  FY201 8 208,104  - - FY201 8 8,208*1 
FY201 9 99 FY201 9 81 FY201 9 145,156  FY201 9  n.a. - - FY201 9 n.a. 
Note:  1. The figures with *1 in column 7 are tentative data . 
 2. For the HS numbers, see attached.  
 3. The quantity in column 3 is for food aid. 
 4. The figures for columns 5 and 7 in FY2019 are not yet available . 
 5. Data source: Ministry of Agriculture, Forestry and Fisheries "Food Balance Sheet" and related data.  
   
  G/STR/N/18/JPN  
 
- 12 - TABLE III  
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(Unit: 1,000 tons)  
Description of product  Domestic purchases by 
state trading enterprise  National production  Domestic sales by state  
trading enterprise  National consumption  
1 2 3 4 5 
Rice FY2017  198 FY2017  8,324  FY2017  859 FY2017  8,616  
FY2018  123 FY2018  8,208*1 FY2018  627 FY2018  8,446*1 
FY2019  185 FY2019  n.a. FY2019  n.a. FY2019  n.a. 
Wheat  FY2017  0 FY2017  907 FY2017  5,519  FY2017  6,577  
FY2018  0 FY2018  765*1 FY2018  5,223  FY2018  6,510*1 
FY2019  0 FY2019  n.a. FY2019  n.a. FY2019  n.a. 
Barley  FY2017  0 FY2017  185 FY2017  353 FY2017  1,985  
FY2018  0 FY2018  175*1 FY2018  539 FY2018  1,979*1 
FY2019  0 FY2019  n.a. FY2019  n.a. FY2019  n.a. 
Note:  1. The figures with *1 in columns 3 and 5 are tentative data.  
 2. For the HS numbers, see attached.  
 3. The figures for columns 3, 4 and 5 in FY2019 are not yet available . 
 4. The figures for columns 2 of rice are the quantity of rice of successful bids in tenders which MAFF conducted to purchase from the respective year's crop.  
 5. Data source: Ministry of Agriculture, Forestry and Fisheries "Food Balance Sheet" and related data.  
 G/STR/N/18/JPN  
 
- 13 - 
 
  HS numbers  
1. Rice and its worked and/or prepared products  
 
1006.10.010  
1006.20.010  
1006.30.010  
1006.40.010  
1102.90.310  
1103.19.510  
1103.20.350  
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  
 
1001.11.010  
1001.19.010  
1001.91.011  
1001.91.019  
1001.99.011  
1001.99.016  
1001.99.019  
1008.60.210  
1101.00.011  
1101.00.091  
1102.90.210  
1103.11.010  
1103.19.210  
1103.20.110  
1103.20.510  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  
1904.30.010  
1904.90.210  
2106.90.214  
3. Barley and its processed products  
 
1003.10.010  
1003.90.011  
1003.90.019  
1102.90.110  
1103.19.110  
1103.20.410  
1104.19.410  
1104.29.410  
1901.20.141  
1901.90.161  
1904.10.231  
1904.20.231  
1904.90.310  
2106.90.216  
  G/STR/N/18/JPN  
 
- 14 - 
 
  4  MILK PRODUCTS  
I. Enumeration of State Trading Enterprises  
A. Identification of State Trading Enterprises  
Agriculture and Livestock Industries Corporation (hereinafter referred to as "ALIC").  
B. Description of Products Affected ( Including Tariff Item Number(s) Encompassed in 
Product Description)  
Designated dairy products for general use (skimmed milk powder, skimmed milk solids, whole milk 
powder and solids, condensed milk, butter milk powder and other solids, whey and modified whey, 
butter and butter oil), hereinafter referred to as "designated dairy products". As for the tariff item 
numbers of the specific products, see the notification on the admini stration of tariff quotas 
(G/AG/N/JPN/1).  
II. Reason and Purpose  
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
ALIC is authorized to take measures to stabilize supply/demand situations and price for milk 
products, to pr omote sound development of dairy and related industries and to improve national 
diet under Act on Stabilization of Livestock Management and the Agriculture and Livestock Industries 
Corporation Law.  
As part of such measures, ALIC, as a state trading enterpr ise, imports designated dairy products to 
ensure proper and smooth 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 17 of Act on Stabilization of Livestock Management.  
Article 10 of the Agriculture and Livestock Industries Corporation Law.  
III. Description of the Functioning of the Stat e Trading Enterprise  
A. Summary Statement Providing Overview 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.  
B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
ALIC collects mark -ups on imported designated 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 fo r Participation  
Private traders can freely import designated dairy products subject to over -quota tariffs established 
in Schedule  XXXVIII -Japan in the WTO Agreement.  G/STR/N/18/JPN  
 
- 15 - 
 
  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 t he State Trading Enterprise. Whether 
the State Trading Enterprise Is Used to Fulfil Contractual Obligations Entered into by 
the Government  
ALIC has no long term contracts on the import of designated dairy products.  
H. Brief Description of Market Structure  
Total national demand for milk and milk products in FY  2018 was 12.43  million  tons milk equivalent.  
7.28 million  tons of raw milk were produced in FY  2018 of which 3.23  million  tons were processed 
for milk products. Annual production of butter, skimmed milk powder and cheese in FY  2018 were 
60 thousand  tons, 120  thousand  tons and 45  thousand  tons, respectively.  
5.16 million  tons milk equivalent of milk products were imported to meet the demand in FY  2018. 
Annual imports of butter, skimmed milk po wder and cheese in FY  2018 were 19 thousand  tons, 
18 thousand  tons (excluding skimmed milk powder for animal feed) and 289  thousand  tons, 
respectively.  
IV. Statistical Information  
See attached Tables I – III. 
V. Reason Why No Foreign Trade Has Taken Place 
None.  
VI. Additional Information  
None.   
  G/STR/N/18/JPN  
 
- 16 - TABLE 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  
(HS No. 0402.10, 
0402.21,0402.29)  35,405 ( FY2017)  
17,555 ( FY2018)  
9,362 ( FY2019)*1 33,306  
15,300  
7,300*1 247 
225 
287*1 663 
665 
656 - 
- 
- 121,581  
120,065  
130,497*1 
Whole milk powder and other 
solids  
(HS No. 0402.21, 0402.29)  79 (FY2017)  
458 (FY2018)  
1,641 (FY2019)*1 0 
0 
0 - 
- 
- 907 
911 
898 - 
- 
- 9,866  
9,623  
10,297*1 
Condensed milk  
(HS No. 0402.99)  22 (FY2017)  
179 (FY2018)  
 271 (FY2019)*1 0 
0 
0 - 
- 
- 397 
395 
391 - 
- 
- 35,339  
32,217  
33,265*1 
Buttermilk powder and other 
solids  
(HS No. 0403.90)  371 (FY2017)  
70 (FY2018)  
13 (FY2019)*1 0 
0 
0 - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 
Whey and modified whey  
(HS No. 0404.10)  19,949 (FY2017)  
17,926 (FY2018)  
10,413 (FY2019)*1 6,520  
4,909  
2,765*1 177 
157 
177*1 n.a.*2 
n.a.*2 
n.a.*2 - 
- 
- 19,615  
18,965  
19,190*1 
Butter and butter oil  
(HS No. 0405.10, 0405.20, 
0405.90)  10,259 (FY2017)  
19,612 (FY2018)  
24,057 (FY2019)*1 9,731  
18,330  
21,876*1 631 
620 
566*1 1,272  
1,286  
1,271  - 
- 
- 59,996  
59,828  
65,495*1 
Note: (*1) The figures with *1 in column 2, 3, 4 and 7 are tentative data.  
 (*2) No official data available.  
   
  G/STR/N/18/JPN  
 
- 17 - TABLE II  
STATE TRADING: AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION  
STATISTICAL INFORMATION, EXPORTS  
(Unit: Metric tons, 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  
(HS No. 0402.10)  36 (FY2017)  
15 (FY2018)  
6 (FY2019)*1 - 
- 
- - 
- 
- 663 
665 
656 - 
- 
- 121,581  
9,623  
10,297*1 
Whole milk powder and 
other solids  
(HS No. 0402.21, 0402.29)  215 (FY2017)  
137 (FY2018)  
38 (FY2019)*1 - 
- 
- - 
- 
- 907 
911 
898 - 
- 
- 9,866  
9,623  
10,297*1 
Condensed milk  
(HS No. 0402.99)  87 (FY2017)  
104 (FY2018)  
96 (FY2019)*1 - 
- 
- - 
- 
- 397 
395 
391 - 
- 
- 35,339  
32,217  
33,265*1 
Buttermilk powder and 
other solids  
(HS No. 0403.90)  45 (FY2017)  
17 (FY2018)  
15 (FY2019)*1 - 
- 
- - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 
Whey and modified whey 
(HS No. 0404.10)  1 (FY2017)  
1 (FY2018)  
600 (FY2019)* - 
- 
- - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 - 
- 
- 19,615  
18,965  
19,190*1 
Butter and butter oil  
(HS No. 0405.10, 0405.20, 
0405.90)  5 (FY2017)  
6 (FY2018)  
3 (FY2019)*1 - 
- 
- - 
- 
- 1,272  
1,286  
1,271  - 
- 
- 59,996  
59,828  
65,495*1 
Note: (*1) The figures with *1 in column 2 and 7 are tentative data.  
 (*2) No official data available.  
   
  G/STR/N/18/JPN  
 
- 18 - TABLE III 
STATE TRADING: AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION  
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
(Unit: Metric tons, 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  
(HS No. 0402.10, 0402.21 ,0402.29 ) (FY2017)  
(FY2018)  
(FY2019)  121,581  
120,065  
130,497*1 - 
- 
- 139,000  
139,000*1 
n.a.*3 
Whole milk powder and other solids  
(HS No. 0402.21, 0402.29)  (FY2017)  
(FY2018)  
(FY2019)  9,866  
9,623  
10,297*1 - 
- 
- 10,000  
10,000*1 
n.a.*3 
Condensed milk  
(HS No. 0402.99)  (FY2017)  
(FY2018)  
(FY2019)  35,339  
32,217  
33,265*1 - 
- 
- 34,000  
36,000*1 
n.a.*3 
Buttermilk powder and other solids  
(HS No. 0403.90)  (FY2017)  
(FY2018)  
(FY2019)  n.a.*2 
n.a.*2 
n.a.*2 - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 
Whey and modified whey  
(HS No. 0404.10)  (FY2017)  
(FY2018)  
(FY2019)  19,615  
18,965  
19,190*1 - 
- 
- n.a.*2 
n.a.*2 
n.a.*2 
Butter and butter oil  
(HS No. 0405.10, 0405.20, 0405.90)  (FY2017)  
(FY2018)  
(FY2019)  59,996  
59,828  
65,495*1 - 
- 
- 71,000  
79,000*1 
n.a.*3 
Note: (*1) The figures with *1 in column 3 and 5 are tentative data.  
 (*2) No official data available.  
(*3) The figures with *3 in columns 5 in FY2019 are not yet available . 
 
__________