WT/TPR/S/310/Rev.1
6 May 2015
(15-2407)  Page: 1/128
Trade Policy Review Body  
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
JAPAN 
Revision 
This report, prepared for the twelfth Trade Policy Review of Japan, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Japan on its trade policies and practices.  
Any technical questions arising from this report  may be addressed to Ricardo Barba Viniegra 
(tel.: 022 739 5088) and John Finn (tel.: 022 739 5081).  
Document WT/TPR/G/310 contains the policy statement submitted by Japan. 
 
 
Note: This report was drafted in English. WT/TPR/S/310/Rev.1 • Japan 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
1   ECONOMIC ENVIRONMENT ........................................................................................ 10  
1.1   Recent Econ omic Developments.................................................................................. 10 
1.2   Trade Performance and FDI ........................................................................................ 13 
1.2.1   Trade in g oods and se rvices .................................................................................... 13 
1.2.2   Foreign di rect inve stment........................................................................................ 15 
1.3   Outlook ................................................................................................................... 16 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 18  
2.1   Genera l Framework .................................................................................................. 18 
2.2   Trade Poli cy Objectives ............................................................................................. 20 
2.3   Trade Agreements and Arrangements .......................................................................... 20 
2.3.1   WTO ................................................................................................................... . 20 
2.3.2   Regional and pr eferential agreements ....................................................................... 20 
2.3.3   Other agreements and arrangements ........................................................................ 21 
2.4   Investme nt Regime .................................................................................................. 22 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 25  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 25 
3.1.1   Customs procedur es and requirements ..................................................................... 25 
3.1.2   Custom s valuation ................................................................................................. 25 
3.1.3   Rules of origin .......................................................................................................  26 
3.1.4   Tariffs ............................................................................................................... ... 26 
3.1.4.1   MFN applied tariff ................................................................................................ 26 
3.1.4.2   Bound tariff ........................................................................................................ 30 
3.1.4.3   Preferential tariff ................................................................................................. 30 
3.1.5   Import prohibitions, rest rictions, licensin g, and quotas ................................................ 31 
3.1.6   Contingenc y trade me asures ................................................................................... 32 
3.1.7   Standards and othe r technical requirements .............................................................. 32 
3.1.8   Sanitary and ph ytosanitary measures ....................................................................... 37 
3.1.9   Labelling and pa ckaging requ irements ...................................................................... 39 
3.1.10   Governme nt procurement ..................................................................................... 40 
3.2   Measures Directly Affecting Exports ............................................................................. 42 
3.2.1   Export procedur es and requirements ........................................................................ 42 
3.2.2   Export taxes, charges, an d levies ............................................................................. 43 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 43 
3.2.4   Export suppo rt and pr omotion ................................................................................. 45 
3.3   Measures Affectin g Production and Trade ..................................................................... 46 
3.3.1   Taxes ................................................................................................................... 46 
3.3.1.1   In come tax ........................................................................................................ 47 
3.3.1.2   Corporation tax ................................................................................................... 48 WT/TPR/S/310/Rev.1 • Japan 
 
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  3.3.1.3   Corporation tax-based incentives ........................................................................... 48 
3.3.1.4   Consumption tax ................................................................................................. 49 
3.3.1.5   Local taxes ......................................................................................................... 49 
3.3.1.6   Excise duties ...................................................................................................... 50 
3.3.1.7   Tax treaties ........................................................................................................ 51 
3.3.2   Subsidies and support ............................................................................................ 51 
3.3.3   State-ow ned enterprises ......................................................................................... 52 
3.3.4   Competition policy ................................................................................................. 55 
3.3.4.1   Recent  developments .......................................................................................... 55 
3.3.4.2   Exemptions from  prohibition of cartels ................................................................... 55 
3.3.4.3   Holding companies, and mergers and acquisitions .................................................... 56 
3.3.4.4   Internatio nal arrangements .................................................................................. 56 
3.3.4.5   Enforcement ....................................................................................................... 56 
3.3.5   Intellectual prop erty rights  (IPRs) ............................................................................ 57 
3.3.5.1   Overview ........................................................................................................... 57 
3.3.5.2   Patents .............................................................................................................. 59 
3.3.5.3   Utility models (UMs) ............................................................................................ 62 
3.3.5.4   Designs .............................................................................................................  62 
3.3.5.5   Trademarks ........................................................................................................ 63 
3.3.5.6   Geographical  indication s (GIs ) .............................................................................. 64 
3.3.5.7   Copyright ........................................................................................................... 64 
3.3.5.8   Enforcement ....................................................................................................... 64 
4   TRADE POLICIES IN  SELECTED SECTOR S .................................................................. 67  
4.1   Agriculture ............................................................................................................. . 67 
4.1.1   Trade ................................................................................................................. .. 69 
4.1.2   Agricultural policies ................................................................................................ 70 
4.1.2.1   Legal and in stitutional framework .......................................................................... 70 
4.1.2.2   Trade policies ..................................................................................................... 72 
4.1.2.3   Dome stic support ................................................................................................ 73 
4.1.2.3.1   General support prog rammes ............................................................................. 73 
4.1.2.3.2   Rice .............................................................................................................. . 74 
4.1.2.3.3   Other cereals, suga r beet and star ch potatoes ...................................................... 75 
4.1.2.3.4   Fruits and vegetables ........................................................................................ 75 
4.1.2.3.5   Tobacco .......................................................................................................... 75 
4.1.2.3.6   Livestock products ............................................................................................ 76 
4.1.2.3.7   Dairy ............................................................................................................. . 76 
4.1.2.4   Support levels .................................................................................................... 77 
4.1.2.4.1   WTO notifications ............................................................................................. 77 
4.1.2.4.2   OECD indicators ............................................................................................... 78 
4.2   Fisheries ............................................................................................................... .. 81 WT/TPR/S/310/Rev.1 • Japan 
 
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  4.2.1   Features ............................................................................................................... 81 
4.2.2   Trade ................................................................................................................. .. 83 
4.2.3   Policy ................................................................................................................ ... 84 
4.2.3.1   Reconstruction .................................................................................................... 86 
4.2.3.2   Stoc k management ............................................................................................. 86 
4.2.3.3   Internat ional agreements ..................................................................................... 87 
4.2.3.4   Suppor t for fisheries ............................................................................................ 87 
4.3   Energy .................................................................................................................. .. 88 
4.3.1   Features ............................................................................................................... 88 
4.3.2   El ectricity ........................................................................................................... .. 89 
4.3.2.1   Featur es ............................................................................................................  89 
4.3.2.2   Policy and legislation ........................................................................................... 90 
4.4   Finance ................................................................................................................. .. 92 
4.4.1   Features ............................................................................................................... 92 
4.4.2   Banking ................................................................................................................ 94 
4.4.3   In surance .............................................................................................................  95 
4.4.4   Securities ............................................................................................................ . 96 
4.4.5   Pension an d mutual funds ....................................................................................... 98 
4.5   Teleco mmunicati ons ................................................................................................. 99 
4.5.1   Features ............................................................................................................... 99 
4.5.2   Policy an d legislation ............................................................................................ 100  
4.6   Tr anspor t .............................................................................................................. 102 
4.6.1   Maritime  transport ............................................................................................... 102  
4.6.2   Air transpor t ....................................................................................................... 1 05 
4.6.3   Rail transpor t ...................................................................................................... 1 08 
REFERENC ES ................................................................................................................ 111  
5   APPENDIX TABLES .................................................................................................. 115  
 
CHARTS 
 Chart 1.1 Product composition of merchandise trad e, 2011 an d 2013 ...................................... 14
 
Chart 1.2 Direction of merchandise trade, 2011 and 2013 ...................................................... 15 
Chart 3.1 Tariff distribution  by type of duty, FY 2014 ............................................................. 28 
Chart 3.2 Share of non- ad valorem  duties, by HS section, FY2014  .......................................... 28 
Chart 3.3 Simple average applied MFN tariff rates, by HS sectio n, FY2012 and FY2014 .............. 29 
Chart 3.4 Flowchart of JIS developing process ...................................................................... 36 
Chart 3.5 Flowchart of JA S developing bodies ...................................................................... 36 
Chart 3.6 Structure of IPR admi nistration and enforcement .................................................... 58 
Chart 3.7 Flowchart for patent app lications .......................................................................... 60 
Chart 3.8 Procedure for re gistering a tradem ark ................................................................... 63 
Chart 4.1 Trade in agricultur e, 2004- 13 .............................................................................. 69 WT/TPR/S/310/Rev.1 • Japan 
 
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  Chart 4.2 Support notified to the WT O Committee on Agricu lture, FY 2003-12  ........................... 77 
Chart 4.3 Green Box support, FY2003-12  ............................................................................ 78 
Chart 4.4 Amber Box support, FY2003-12  ........................................................................... 79 
Chart 4.5 Value of production and support to agriculture, 2001-13 .......................................... 80 
Chart 4.6 Electricity regions, peak demand and interconnections, 2012 .................................... 90 
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2009- 13 ......................................................... 11 
Table 1.2 Balance of payments, 2009-13 ............................................................................. 12 
Table 1.3 Foreign direct  investment, 2009-13 ...................................................................... 16 
Table 2.1 Major trade-related laws and regulations, October 2014 .......................................... 18 
Table 2.2 Trade agreements concluded by, not yet in force and under negotiation ..................... 21 
Table 2.3 Bilateral investme nt treaties in force ..................................................................... 23 
Table 2.4 Tax conventions ................................................................................................. 23 
Table 3.1 Structure of MFN tari ffs, FY2010, FY2012 and FY20 14 ............................................. 27 
Table 3.2 Summary analysis of Japa n's preferential tariffs, FY2014 ......................................... 30 
Table 3.3 Main laws on standa rds and technica l regulations ................................................... 33 
Table 3.4 JIS established, revised, and withdrawn, April 2013-March 2014 ............................... 35 
Table 3.5 Principal laws on SPS measures ........................................................................... 38 
Table 3.6 Procurement by produc t and by origin , 2011 and 2012 ............................................ 42 
Table 3.7 Principal legislation affecting exports ..................................................................... 43 
Table 3.8 NEXI insura nce activity , FY2009- 13 ...................................................................... 45 
Table 3.9 JBIC lending an d investments,  FY2009- 13 ............................................................. 46 
Table 3.10 JBIC funding sources, FY2009-12 ........................................................................ 46 
Table 3.11 Tax re venue, FY2009-13 ................................................................................... 47 
Table 3.12 Maximum rates of enterpri se taxes ..................................................................... 50 
Table 3.13 Excise duties ................................................................................................... 50 
Table 3.14 State trading enterprises notified to the WTO under Article XVII .............................. 52 
Table 3.15 Aggregate data on State-owned enterprises in Japan ............................................. 53 
Table 3.16 Large state enterprises,  FY2013  ......................................................................... 54 
Table 3.17 Exemptions under the Anti-M onopoly Act and individual laws .................................. 55 
Table 3.18 Enforcement of co mpetition polic y, 2009- 13 ......................................................... 57 
Table 3.19 Principal legislation relating to IPRs ..................................................................... 58 
Table 3.20 Patent applications and patents gran ted, 2005- 13 ................................................. 61 
Table 3.21 Utility models applicat ions and regist rations,  2005- 13............................................ 62 
Table 3.22 Design applications  and registra tions, 2005-13 ..................................................... 62 
Table 3.23 Trademark applications  and registrati ons, 2005- 13 ............................................... 64 
Table 3.24 Seizure of  imports,  2009-13  .............................................................................. 65 
Table 4.1 Agriculture in  the econom y, 2004 -12 .................................................................... 67 
Table 4.2 Farm households an d average farm size, 2010 -13 .................................................. 68 WT/TPR/S/310/Rev.1 • Japan 
 
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  Table 4.3 Total agricultural production and production of selected  products, 2003-12 ................ 68 
Table 4.4 Imports of agricultural products, 2006-13 .............................................................. 69 
Table 4.5 Exports of agricu ltural produc ts, 2006- 13 .............................................................. 70 
Table 4.6 Imports under the SBS system, FY2009-11 ............................................................ 73 
Table 4.7 Payment rates for other cereals, sugar beet, and starch potatoes .............................. 75 
Table 4.8 Administered prices for calves, beef, and pig meat, FY2014 ...................................... 76 
Table 4.9 Total producer support estimate and single commodity transfer values for 
selected commodities, 2004-13 .......................................................................................... 80 
Table 4.10 Fish in th e economy,  2005-13  ............................................................................ 81 
Table 4.11 Fisheries production , 2004-12  ............................................................................ 82 
Table 4.12 Fisheries landin gs in Japa n, 2005- 12 ................................................................... 83 
Table 4.13 Aquatic mammals ta ken by Japan, 2005-12 ......................................................... 83 
Table 4.14 Structure of fisheries, 2004-12 ........................................................................... 83 
Table 4.15 Imports of fish products, 2006-13 ....................................................................... 84 
Table 4.16 Exports of fi sh products , 2006-13 ....................................................................... 84 
Table 4.17 Government transf ers to fishin g, 2005- 11 ............................................................ 87 
Table 4.18 Total primary energy supp ly, 2005- 12 ................................................................. 88 
Table 4.19 Production and consum ption of electr icity, 2005-12 ............................................... 89 
Table 4.20 Power production in Japan in FY1994 and FY2012 ................................................. 90 
Table 4.21 Maritime transport, main economic indicators, June 2012 ..................................... 102  
Table 4.22 Trade-related maritime transport policies ........................................................... 104  
Table 4.23 Bilateral air transport agreements, 2014 ............................................................ 108  
Table 4.24 Railway transport in Japan, FY2011 ................................................................... 108  
Table 4.25 JR Group, FY2013 ........................................................................................... 109  
 
BOXES 
 
Box 3.1 Agencies in ch arge of TB T issues ............................................................................ 34 
Box 3.2 Key agencies respon sible for SPS measures ............................................................. 38 
Box 4.1 Market and regulatory regime for financial services, general overview .......................... 93 
Box 4.2 Market and regulatory regime for banking ................................................................ 94 
Box 4.3 Market and regulato ry regime fo r insurance ............................................................. 96 
Box 4.4 Market and regulatory regime for securities .............................................................. 97 
Box 4.5 Market and regulatory regime for pension funds an d mutual funds .............................. 99 
Box 4.6 Market structure and regulatory regime for telecommunications sector, 2013 .............. 100  
Box 4.7 Japan's market and regulatory re gime for air transport subsectors, 2014 .................... 106  
Box 4.8 Regulatory framework for railw ay transport in Japan, 2012 ...................................... 110  
 
APPENDIX TABLES 
 Table A1. 1 Merchandise export s by product gr oups, 2009- 13 .............................................. 115
 WT/TPR/S/310/Rev.1 • Japan 
 
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  Table A1. 2 Merchandise import s by product gr oups, 2009- 13 .............................................. 116  
Table A1. 3 Merchandise export s by destinatio n, 2009-13  .................................................... 117  
Table A1. 4 Merchandise impo rts by origin , 2009-13  ........................................................... 118  
 
 
Table A2. 1 WTO dispute settlement cases ac tive 1 January 2011–31 December 2014 ............. 119  
Table A2. 2 Selected notifications under WTO Agreements (1 January 2012-
7 October 2014) ............................................................................................................ 12 2 
 
 Table A3. 1 Japan's tariff summary, FY2014 ....................................................................... 124
 
Table A3. 2 Incorporated administrative  agencies by gove rnment of fice ................................. 125  
 
 
Table A4. 1 Special safeguard, FY2011-2013 ...................................................................... 127  
 WT/TPR/S/310/Rev.1 • Japan 
 
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  SUMMARY 
1. Since December 2012, Japan has been implementing an ambitious reform programme to 
overcome deflation and revitalize its economy after more than a decade of sluggish performance. The programme consists of a "three arrows strategy": monetary easing (2% inflation target to be 
achieved at the earliest possible time mainly th rough the expansion of the monetary base); fiscal 
stimulus (about US$100 billion in January 2013 and an extra US$53 billion in December 2013 in an attempt to boost growth); and structural reforms in areas such as agriculture, energy and 
healthcare which will take longer to be impl emented, not least because the reforms require 
legislative and administrative changes that take time to prepare. 
2. The expansionary monetary and fiscal policy me asures adopted since the last review have 
supported Japan's economy but have been insufficient to achieve strong economic growth. Indeed, 
Japan's real GDP growth is estimated at -0.1% for 2014 (against 1.8% in 2013). The authorities 
recognize that far-reaching structural reforms are necessary to address long-standing structural problems and achieve sustainable growth in the future. While some steps have been taken in this 
regard, more is needed including further trade and investment liberalization measures so as to 
encourage private investment, increase productivity, and enhance competitiveness. 
3. Since 2011, Japan has had a persistent trade deficit, the longest since comparable records 
began. In 2013, Japan had its biggest annual trade deficit (US$118 billion), although exports 
increased in U.S. dollar terms while imports grew to  their highest-ever level. Increased imports of 
fossil fuels were a major factor in the rise in imports as they replaced energy from nuclear power following the accident at the Fukushima nuclear plant in 2011 and the subsequent shut-down of 
other nuclear power plants. 
4. Japan's FDI inflows continue to be lower than in other major developed economies and the 
Japan Revitalization Strategy sets a target of doubling FDI by 2020. To achieve this, Japan is to 
expand the use of public-private partnerships, while private finance initiatives in infrastructure 
projects are envisaged over the next ten years. Japan is the second-largest outward direct investor in the world, particularly in certain ASEAN countries where subsidiaries of Japanese companies 
often play a leading role in sectors such as autos and electronics. 
5. Japan's current network of 13 regional trade agreements (RTAs) in force is the same as at 
the time of its previous review. Under these agreements, Japan has excluded some sensitive agricultural and related products, notably certain tariff lines for meat and meat products, fish and 
fish products, dairy products, rice, products of the milling industry, plywood, leather and products 
thereof, and footwear. Some of these products ar e also excluded from Japan's Generalized System 
of Preferences (GSP) scheme.  
6. During the review period, an RTA with Aust ralia was signed, and another was reached in 
principle with Mongolia. In addition, Japan is in negotiations with: Canada; Colombia; China; the European Union; the Gulf Cooperation Council (GCC); the Republic of Korea; and Turkey. 
Moreover, Japan is part of the Trans-Pacific Partnership (TPP) negotiations and the Comprehensive 
Regional Economic Partnership Agreement. Japan aims to increase its trade under RTAs from around 19% in 2013 to 70% by 2018. 
7. In general, Japan's trade policies during the review period have remained relatively stable 
while it has been actively negotiating RTAs, pursuing domestic reforms to improve its 
competitiveness, and participating in work in the WTO.  
8. Japan's overall simple average applied MFN tariff rate declined from 6.3% in FY2012 
to 5.8% in FY2014 due to higher unit prices for many agricultural products which reduced the 
ad valorem  equivalents (AVEs). Thus, the simple average for agriculture (WTO definition) is 14.9% 
(down from 17.5% in FY2012), and 3.7% for non-agricultural products (the same as in FY2012).  
9. Japan has bound 98.3% of its tariff (159 lines are unbound). The difference between the 
average bound MFN tariff (5.9%) and the av erage applied MFN tariff (5.8%) in FY2014 was 
negligible, which reflects a high degree of predicta bility in the tariff. However, the average bound 
rate remains considerably higher for agricultural products (15.2%) than for non-agricultural 
products (3.7%). WT/TPR/S/310/Rev.1 • Japan 
 
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  10. Japan makes relatively little use of contingency trade remedies. It applied neither 
countervailing or safeguard measures during the review period and has only one anti-dumping duty in force on electrolytic manganese dioxide originating from China, South Africa, and Spain. The period of imposition was extended by five years and will expire on 5 March 2019. In 2014, 
Japan initiated an anti-dumping investigation on toluenediisocyanate from China.  
11. For a variety of reasons, Japan's SPS and TBT requirements are often more strict than 
international standards and the cost of meeting its quality and safety standards can be high. As at 
31 March 2014, there were 10,525 Japanese Industrial Standards (JIS), 5,823 of which correspond 
with international standards, and 97% of JIS had been harmonized with identical or modified international standards. Japan currently imposes import prohibitions on beef and poultry from various countries to prevent the spread of some animal diseases, including BSE and avian flu. 
12. Japan made some changes to its government procurement framework, basically to preclude 
from participation in open tendering parties who, inter alia , intentionally execute construction 
works or services with poor workmanship, or over charge by false reporting contracts. Japan also 
recently lowered some of its thresholds  for goods and services under the GPA. 
13. The Anti-Monopoly Act was amended in December 2013, inter alia,  to abolish the hearing 
procedure of the Japan Fair Trade Commission (JFTC) for administrative appeals. Once the Act 
comes into force, any appeal regarding decisions of the JFTC will be subject to the exclusive 
jurisdiction of the Tokyo District Court with a vi ew to ensuring expertise and enhancing procedural 
fairness. 
14. The main developments regarding Japan's Intelle ctual Property Rights (IPR) framework were 
the strengthening of copyright protection in the digital environment, introducing trademark 
protection for non-traditional marks, improving the efficiency of the patent system, and an 
important judicial decision on the protection of standard essential patents. Japan remains an active 
participant in multilateral fora regarding harmonization of regimes protecting IPRs. 
15. Despite changes in agricultural programmes over the past few years, support and protection 
given to agriculture in Japan remains high compared to other countries and is provided by a 
comprehensive set of policies. While the Government has continued to move toward income 
support, market price support is the main component and it, along with other transfers based on output and inputs, is potentially one of the most production and trade-distorting forms of support. 
16. As one of the biggest consumers of fish and se afood in the world, Japan provides a range of 
support measures to fisheries. The budget support to the sector increased after the extensive 
damage caused by the 2011 tsunami with the aim of completing the recovery of fishing port facilities by end-FY2015. Although the average applied MFN tariff on fish and fish products was 
6.2% in FY2014 (same as in FY2012), import quotas apply to several species of fish. 
17. The shutdown of nuclear power plants following the accident in Fukushima in 2011 has 
provoked a major reconstruction programme. Although the electricity sector has been gradually 
reformed over the past twenty years, the regional utilities are still the main producers, 
transmitters, distributors, and retailers, while interchange between some of the regions remains limited. Recent amendments to the Electricity Business Act aim to secure a stable supply of electricity, suppressing electricity rates to the maximum extent possible, and expanding consumer 
choice and business opportunities. 
18. In the financial services sector, the Financial Services Agency (FSA) of Japan has amended 
rules on large exposures in line with international standards, with effect from December 2014. 
Through supervisory guidelines and related me asures, the FSA revised the minimum capital 
requirements for internationally active banks and intends to introduce other capital buffers and liquidity measures in accordance with Basel III. On telecommunications and transport sectors, 
Japan's legislation and policies have remained largely unchanged. 
19. Overall, despite a long period of relatively  weak economic performance and some severe 
shocks to the economy over the past few years, Japan remains an open transparent economy – although support and protection in some areas, particularly agriculture, remain high. Japan has 
many unique characteristics, some of which have helped it become the third richest country in the WT/TPR/S/310/Rev.1 • Japan 
 
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  world, but others add to the cost of importin g, exporting, investing, and doing business. 
Addressing many of these impediments to growth is the target of the third arrow of the current 
reform programme and necessary if growth is to accelerate to a higher and sustainable level. 
 
1  ECONOMIC ENVIRONMENT 
1.1  Recent Economic Developments 1.1.  At the time of its 11
th TPR in 2013, Japan was recovering from the earthquake and tsunami 
of 2011 which resulted in sharp declines in private consumption and stock-building, and 
widespread supply chain disruptions affecting production across the country, particularly in export-led sectors such as automobiles and electron ics. Production had also been affected by the 
shutdown of nuclear power plants following the accident in Fukushima in 2011. Moreover, Japan 
confronted other key challenges, notably very high public debt, rapidly aging population, and 
nearly two decades of deflation and low growth.
1 
1.2.  Since then, Japan has been implementing an ambitious reform programme to overcome 
deflation and revitalize the economy. The programme consists of a "three arrows strategy"2: 
monetary easing, flexible fiscal policy, and structural reforms (section 1.3).  
1.3.  Regarding monetary policy, on 22 January  2013 the Government and the Bank of Japan 
(BOJ) released a joint-statement, where BOJ set a 2% price-stability target to be achieved at the 
earliest possible time.3 On 4 April 2013, BOJ introduced "Quantitative and Qualitative Monetary 
Easing" which included increasing the monetary base by some ¥60-70 trillion per year mainly 
through the purchase of Japanese government bonds.4 As a result, BOJ has now become the single 
biggest holder of Japanese government bonds (JGBs) underscoring the scale of its monetary 
easing programme.5 On 31 October 2014, BOJ announced it will expand the monetary base each 
year by some ¥80 trillion (from ¥60-70 trillion) in a further effort to achieve the 2% inflation 
target.6  
1.4.  On the fiscal side, the strategy has involved short-term economic stimulus combined with 
medium-term measures aimed at achieving fiscal consolidation. In early 2013, a fiscal package 
of ¥10.3 trillion (some US$100 billion or about 2% of GDP) was adopted.7 In December 2013, an 
extra fiscal stimulant of ¥5.5 trillion (US$53.4 billion or about 1% of GDP)  was approved to 
mitigate the downside risks to the economy of the consumption tax rate increase from 5% to 8% applied as of 1 April 2014.
8 This was the first increase in the consumption tax in 17 years and the 
first step in a two-stage boost that is set to take the tax rate to 10% in April 2017.9 The 
consumption tax, levied on goods and services transactions, is the largest component of indirect taxes, contributing 20.7% to total tax revenue in FY2013. The 8% consumption tax rate consists 
of the national consumption tax (6.3%) and a local consumption tax (1.7%).  
1.5.  Japan also aims to halve by FY2015 the primary deficit to GDP ratio of central and local 
governments as compared to that of FY2010, and to achieve a primary surplus by FY2020. 
                                               
1 WTO (2013). 
2 The programme is commonly known as "Abenomics"  because it is advocated by Prime Minister Shinzo 
Abe following the December 2012 general election. 
3 Joint Statement of the Government and the BOJ. Viewed at: 
http://www5.cao.go.jp/keizai1/2013/130122_joint_stateme nt_of_the_government_and_the_bank_of_japan.pd
f. The idea is to dispel the deflation mind-set entrenched among businesses and households.  
4 BOJ online information. Viewed at: 
http://www.boj.or.jp/en/announcements/release2013/k130404a.pdf. 
5 In March 2014, the BOJ had ¥201 trillion in JGBs, 20.1% of the total. IMF News Report, 18 June 2014. 
6 BOJ Press Release, "Expansion of the Quantitative  and Qualitative Monetary Easing", 31 October 2014. 
7 On 11 January 2013, the Government formulated its "Emergency Economic Measures for the 
Revitalization of the Japanese Economy". In order to implement the measures, a supplementary budget of FY2012 was passed through the Diet on 26 February 2013. The budget for FY2013 was passed on 15 May 2013. Viewed at: http://www5.cao.go.jp/kei zai1/2013/130111_emergency_economic_measures.pdf . 
8 Decision taken on 1 October 2013 based on the "Act for the Fundamental Reform of the Tax System".  
9 Originally, the consumption tax rate was scheduled to increase to 10% in October 2015. However, this 
has been delayed until April 2017 in light of data suggest ing that the increase in the sales tax rate from 5% to 
8% affected Japan's real GDP gr owth rate more than expected. WT/TPR/S/310/Rev.1 • Japan 
 
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  Thereafter Japan will seek to reduce the public  debt-to-GDP ratio (estimated at about 240% of 
GDP in 2013). According to the IMF, the fiscal measures adopted by Japan are a welcome step but a concrete medium-term fiscal consolidation strategy beyond 2015 is needed otherwise the public debt-to-GDP ratio would again begin to rise after 2019.
10  
1.6.  Regarding the exchange rate of the yen, a nominal depreciation against the U.S. dollar of 
about 22% took place in 2013 (Table 1.1), reflecting several factors such as the new monetary framework, a reversal of the yen's safe haven status, and a structural weakening of Japan's trade 
balance given higher energy imports (section  1.2.1). Between January-November 2014, the 
nominal exchange rate of the yen also depreciated against the U.S. dollar.
11  
Table 1.1 Selected macroeconomic indicators, 2009-13 
  2009 2010 2011 2012 2013
 (% change, unless otherwise indicated) 
National accounts      
Real GDP -5.5 4.7 -0.5 1.8 1.6 
 Final domestic demand -4.0 2.9 0.4 2.3 1.8 
 Private consumption -0.7 2.8 0.3 2.0 2.0 
 Government consumption 2.3 1.9 1.2 1.7 2.0 
 Gross fixed capital formation -10.6 -0.2 1.4 3.4 2.6 
 Exports of goods and services -24.2 24.4 -0.4 -0.2 1.6 
 Imports of goods and services -15.7 11.1 5.9 5.3 3.4 
Exports of goods and services (% of GDP)a 12.7 15.2 15.1 14.7 16.2 
Imports of goods and services (% of GDP)a 12.3 14.0 16.0 16.7 19.1 
Employment -1.5 -0.3 -0.1 -0.3 0.7 
Unemployment rate (annual av erage) 5.1 5. 0 4.6 4.3 4.0 
Household disposable income (% change) -1.1 0.5 -0.1 -0.1 .. 
Prices and interest rates       
Consumer prices (CPI)  (average; % change) -1.3 -0.7 -0.3 0.0 0.4 
GDP deflator (% change) -0.5 -2.2 -1.9 -0.9 -0.6 
Basic discount rate and basic loan rate (%) 0.3 0.3 0.3 0.3 0.3 
Exchange rate (annual average, ¥ per US$) 93.5 87.8 79.8 79.8 97.6 
 (% of GDP) 
Fiscal balance      
Revenue  29.6 29.6 30.8 31.2 31.7 
Expenditure  40.0 38.9 40.6 39.9 40.0 
Balance -10.4 -9.3 -9.8 -8.7 -8.3 
Primary balance -9.9 -8.6 -9.0 -7.8 -7.6 
 Excluding social security -9.3 -8.2 -9.0 -8.0 -7.6 
Government debt, gross 210.2 216.0 229.8 237.3 243.4 
Saving and investment      
National saving (gross) 22.2 22.3 22.4 21.9 .. 
Domestic investment (gross) 19.7 19.8 20.2 20.8 21.0 
Current account 2.9 4.0 2.2 1.0 0.7 
 Goods 1.1 2.0 -0.1 -0.9 -1.8 
 Exports 10.9 13.3 13.4 13.1 14.2 
 Imports 9.7 11.4 13.4 14.0 16.0 
 Services -0.7 -0.6 -0.6 -0.9 -0.7 
 Primary income 2.7 2.8 3.1 3.0 3.4 
 Secondary income -0.2 -0.2 -0.2 -0.2 -0.2 
Capital account -0.1 -0.1 0.0 0.0 -0.2 
Financial account 3.4 4.6 2.8 1.0 -0.3 
Direct investment 1.2 1.3 2.0 2.0 2.7 
Portfolio investment 4.4 2.7 -2.7 0.7 -5.3 
Financial derivatives (other than reserves) -0.2 -0.2 -0.3 0.1 1.2 
Reserve assets 0.5 0.8 2.9 -0.6 0.8 
.. Not available. 
a Percentage distribution  in annual nominal GDP. 
Source: IMF (2014), Japan – 2014 Article IV Consultation – Staff Report, Country Report No. 14/236. Viewed 
at: https://www.imf.org/external/pubs/ft/scr/2014/cr14236.pdf ; and information provided by the 
Japanese authorities. 
                                               
10 IMF (2014a). 
11 The authorities indicated that Japan's recent fiscal  and monetary policy actions are intended to stop 
deflation and support domestic  demand and do not target  foreign exchange rates. WT/TPR/S/310/Rev.1 • Japan 
 
- 12 - 
 
  1.7.  In 2013, the Japanese economy grew by 1.8%  (1.6% in 2012) supported by strong industrial 
production, retail sales, and consumer spending. Expenditure on rebuilding the physical infrastructure also helped.
12 For 2014 and 2015, the IMF expects Japan's real GDP growth to be    
-0.1% and 1%, respectively, as fiscal stimulus winds down. On 31 October 2014, BOJ halved its 
forecast for economic growth for FY2014 to 0.5%.13 The consumption tax increase had a negative 
effect on domestic demand which together with weak capital spending and big cuts in inventories caused the economy to shrink by 7.3% and 1. 9% in the second and third quarters of 2014, 
respectively. 
1.8.  In 2013, Japan had an annual average infl ation rate of 0.4% (zero in 2012) supported by 
BOJ's accommodative monetary policy stance. For 2014, the IMF expects an average inflation rate of 2.7%, i.e. somewhat above the 2% target, mainly as a result of the consumption tax increase. 
Nonetheless, underlying inflation (excluding the consumption tax increase) is expected to be 1.1% 
in 2014. For 2015, the IMF expects inflation of 2%.
14 Following additional monetary easing, BOJ 
expects to meet its 2% inflation target in or around FY2015.15 
1.9.  Japan's current account surplus decreased during the review period from US$127.1 billion 
in 2011 to US$33.2 billion in 2013 (Table 1.2), reflecting a narrowing of the gap between gross national savings and gross domestic investment (Table 1.1). This decline is mainly the 
consequence of the trade deficits recorded since 2011, the longest period since comparable 
records began in the 1970s (section 1.2.1). For 2014 and 2015, respectively, the IMF expects current account surpluses of 1% and 1.1% of GDP.
16 
Table 1.2 Balance of payments, 2009-13 
(US$ billion) 
  2009 2010 2011 2012 2013
Current account 145.4 217.9 127.1 58.7 33.2 
 Goods 57.6 108.6 -4.1 -53.6 -90.0 
 Exports 547.0 735.0 789.7 776.9 696.0 
 Imports 489.4 626.4 793.8 830.5 786.0 
 Services -34.9 -33.7 -38.2 -50.6 -35.7 
 Credit 121.0 131.3 137.6 134.2 135.4 
 Transport 31.6 39.0 38.4 40.2 39.6 
 Travel 10.3 13.2 11.0 14.6 15.2 
 Other 79.1 79.1 88.3 79.5 80.7 
 Debit 155.9 165.0 175.8 184.8 171.1 
 Transport 40.6 46.5 49.5 55.4 47.0 
 Travel 25.2 27.9 27.2 27.9 21.9 
 Other 90.2 90.6 99.1 101.5 102.3 
 Primary income 135.2 155.4 183.4 177.2 169.1 
 Secondary income -12.4 -12.5 -13.9 -14.4 -10.2 
Capital account -5.0 -5.0 0.4 -1.0 -7.6 
 Credit 1.1 0.9 7.5 6.0 1.2 
 Debit 6.1 5.8 7.1 7.0 8.8 
Financial account  173.2 254.1 165.9 61.6 -16.7 
 Direct investment 61.3 71.4 116.8 119.1 133.6 
 Portfolio investment 219.4 151.2 -162.1 40.4 -261.5 
 Financial derivatives -10.2 -11.7 -16.9 7.4 57.0 
 Other investment -124.4 -0.1 55.2 -67.0 14.6 
 Reserve assets 27.0 43.3 172.9 -38.3 39.5 
Net errors and omissions 32.7 41.1 38.5 3.9 -42.3 
Source: Information provided by the Japanese authorities. 
                                               
12 Based on the estimation of reconstruction spen ding in the aftermath of the 2011 earthquake and 
tsunami, ¥25 trillion of fiscal resources have been allocated until March 2016. 
13 BOJ press release, "Outlook for Economic Activity and Prices", 31 October 2014. 
14 IMF (2014b). 
15 BOJ press release, "Outlook for Economic Activity and Prices", 31 October 2014. 
16 IMF (2014b). WT/TPR/S/310/Rev.1 • Japan 
 
- 13 - 
 
  1.2  Trade Performance and FDI  
1.2.1  Trade in goods and services 1.10.  During 2011-13, Japan's ratio of merchandise trade (exports and imports) to GDP averaged 
28%. In 2013, the share of exports of goods and services in GDP was 16.9% (15.7% in 2011), 
while the share of imports was 19.5% (16.4% in  2011). These shares have increased since 2009, 
with imports rising faster (mainly due to higher fuel imports). Japan continues to be the world's fourth largest exporter and importer of goods (c onsidering the countries of the European Union 
together and excluding intra-EU trade). In servic es trade, Japan ranked fifth and fourth among 
world exporters and importers, respectively.
17 
1.11.  The appreciation in the exchange rate of the yen against major currencies up to 2012 
eroded somewhat the international competitiveness of Japanese exports.18 In 2013, exports rose 
by 9.5% to ¥69.77 trillion, their first increase in three years, but in U.S. dollar terms that 
represented a decline of 10.5% (US$715.1 billion) given the significant depreciation of the yen 
against the U.S. dollar (Table 1.1). Imports reached their highest-ever level of ¥81.24 trillion 
(US$833.2 billion) in 2013. Consequently, Japan had its largest trade deficit (¥11.47 trillion or 
US$118.1 billion) in 2013. 
1.12.  Manufactures continue to dominate Ja pan's exports accounting for 87.6% of total 
merchandise exports in 2013, slightly down from 88.1% in 2011 (Chart 1.1). During 2011-13, 
machinery and transport equipment, led by automotive products, remained Japan's most important merchandise export, representing 57.9%  of the total in 2013, followed by chemical 
products with a 10.6% share (Table A1.1).  
1.13.  Imports of fossil fuels have increased to fill an energy gap since the 2011 Fukushima crisis 
forced the shutdown of nuclear reactors that once supplied a third of Japan's power (section 4.3.2.1 and Table 4.19). Despite this, the share of primary products in total merchandise 
imports decreased from 51.4% in 2011 to 50.5% in 2013 mainly due to a reduction in agricultural 
imports during the period. On the other hand, the share of manufactures went up from 47.1% 
in 2011 to 48% in 2013, with machinery and transport equipment increasing from 20.8% of total 
imports in 2011 to 22.6% in 2013 (Table A1.2). 
1.14.  In 2013, the United States became Japan's largest export market, attracting 18.8% of total 
exports (up from 15.5% in 2011), followed by China with 18.1% (Chart 1.2). The share of Asia as 
a whole as an export destination also decrease d slightly, but APEC's share increased to 78.4% 
(from 76.1%). The share of the European Unio n declined to 10% in 2013 from 11.7% in 2011, 
owing mainly to the global economic crisis (Table A1.3). 
1.15.  China's share in Japan's merchandise imports remained relatively stable at around 21-22% 
over 2011-13, and it remains Japan's largest trading partner. The share of goods imported by 
Japan from Asia decreased slightly to 50.9% in 2013, while the share of imports from the Middle 
East continued to rise mainly due to larger fuel imports. On the other hand, the share of imports 
from the United States decreased from 14.3% to 13.9% during 2011-13, and that of the 
European Union was stable at 9.4% (Table A1.4). 
1.16.  Balance of payments data indicate that Japan is a net importer of services with a deficit that 
averaged US$41.5 billion during 2011-13 (Table 1.2). Net outflows occurred in the form of 
payments for foreign travel and trade-related transport. 
                                               
17 WTO Statistics Database, "Trade  Profiles: Japan". Viewed at:  
http://stat.wto.org/CountryProfiles/JP_E.htm  . 
18 Japanese companies have also shifted a large pa rt of their production to foreign countries. WT/TPR/S/310/Rev.1 • Japan 
 
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  Chart 1.1 Product composition of merchandise trade, 2011 and 2013 
2011 2013
(a)    Exports (f.o.b.)
Automotive products
18.3%
Mining
4.6%
Total:   US$823.2 billion Total:  US$715.1 billion
(b)    Imports (f.o.b.)
Chemicals
8.8%Transport 
equipment
3.0%
Manufactures
47.1%Electrical machines  
13.6%
Non-electrical machinery
4.2%Electrical machines
14.5%Other semi-manufactures
4.9%
Other semi-manuf.  
4.5%
Chemicals
7.9%Manufactures
48.0%
Total:   US$8 55.4 billion T otal:  US $833.2 b illionManufactures
87.6%Other consumer goods
8.7%
Non-electrical machinery
17.1%
Other consumer 
goods  7.9%
Other
1.6%Other semi-manufactures
4.8%Other electrical 
machines
6.2%Other transport equipment
5.3%
Mining
5.1%Other electrical 
machines
6.3%
Office machines & 
telecommunication 
equipment
10.6%
Other consumer goods
7.6%Other 
5.8%Automotive products
21.2%
Other semi-manuf.
4.9%Other 
6.0%
Agriculture
10.3%Agriculture
11.2%Transport 
equipment
3.9%Chemicals
10.3% Chemicals
10.6%Agriculture
1.3% Agriculture  
1.5%Other transport equipment
6.2%
Fuels
33.8%Textiles & clothing
4.9%
Other 
1.4.%Non-electrical 
machinery  4.2%Iron & steel
5.7%Other consumer goods
9.0%
Manufactures
88.1%
Iron & steel
5.4%
Non-electrical machinery
15.3%Office machines & 
telecommunication 
equipment
9.8%
Fuels
32.1%Other mining
6.4%Textiles & clothing
5.1%
Other mining
8.0%
 
Source: UNSD, Comtrade database (SITC Rev.3). 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 15 - 
 
  Chart 1.2 Direction of merchandise trade, 2011 and 2013 
 
2011 2013
(a)    Exports (f.o.b.)
Asia
58.7%
Total:   US$823. 2 billion Total:  US$715.1 billion
(b)    Imports (f.o.b.)
EU28
9.4%
Australia
6.6%United States
8.9%Other
5.6%
EU28
9.4%Other
6.4%
Other 
Middle East
4.4%United States
8.6%
Total:   US $855.4 billion Total:   US$833.2 billionOther America
6.2%
Qatar  4.4%Korea, Rep. of
4.3% Korea, Rep. of  
4.7%United States
15.5% United States
18.8%
Hong Kong, 
China  5.2%
Other 
Middle East
3.8%China
21.5%Other Asia
15.0%
EU28
10.0%Hong Kong,
China  5.2%Other
4.4%
Qatar  3.5%Other Asia
11.7%China
18.1%EU28
11.7%Thailand
4.6%
Chinese Taipei
6.2%Thailand
5.0%
China
19.7%Middle East
3.6%
Indonesia 
3.5%Other Asia
15.1%
Malaysia
3.6%Other Asia   
11.5%Korea, Rep. of
8.0%Other
4.9%
Chinese Taipei
5.8%
Indonesia
4.0%
Asia
50.9%Asia
51.8%Asia
57.2%
Australia
6.1%
Malaysia  3.6%Korea, Rep. of
7.9%
China
21.7%Middle East
3.0%Other America
6.0%
Other America
5.4%Other America
5.3%
United Arab
Emirates  5.0%United Arab
Emirates  5.1%Saudi Arabia, 
Kingdom of 
6.0%Saudi Arabia, 
Kingdom of
5.9%
 
 
Source: UNSD, Comtrade database. 
1.2.2  Foreign direct investment 
1.17.  Until recently, the Government did not consid er attracting FDI a high priority, while the local 
business community in general considered investment by large foreign companies as a threat. WT/TPR/S/310/Rev.1 • Japan 
 
- 16 - 
 
  Consequently, Japan's inward FDI is far below that of other major developed economies.19 The 
continued low level of FDI may also be attributed to factors such as the relatively high cost of doing business in Japan
20; strict and complicated domestic sector regulations; limited availability 
of risk capital; regulatory barriers; the difficulty involved in hiring qualified employees; and 
impediments to mergers and acquisitions.  
1.18.  Japan aims to double the outstanding am ount of FDI by foreign companies to ¥35 trillion 
by 2020. To achieve this, tax incentives to stim ulate investment and private-demand-led growth 
are also being discussed. A cut in corporate tax (currently 30%) is considered as the initial major 
step (section 3.3.1.5).21 
1.19.  Japan is the second-largest outward direct investor in the world, with US$136 billion 
in 2013, up from US$56 billion in 2010 (Table 1.3), presumably due to low returns in the domestic 
economy. In particular, Japan has been strengthening its position as a major direct investor in 
some ASEAN countries where subsidiaries of Japanese companies often play a leading role in sectors such as autos and electronics.
22 
Table 1.3 Foreign direct investment, 2009-13 
(US$ million) 
 2009 2010 2011 2012 2013 
FDI inflows 11,938 -1,252 -1,758 1,732 2,304 
FDI inward stock 200,144 214,880 225,787 205,361 170,929 
FDI inward stock (% of GDP) 3.6 3.9 3.8 3.4 3.5 
FDI outflows 74,699 56,263 107,599 122,549 135,749 
FDI outward stock 740,927 831,076 962,790 1,054,928 992,901 
FDI outward stock (% of GDP) 13.5 15.1 16.3 17.7 20.3 
Source: UNCTAD (2014), World Investment Report 2014 , Geneva. 
1.20.  The United States is now the largest investor in Japan, accounting for 58.9% of inward FDI 
in 2013, followed by the European Union. The larg est recipient of FDI was the electric machinery 
industry, followed by glass and ceramics, and financ e and insurance. FDI is highly concentrated in 
the metropolitan areas of Greater Tokyo and Kansai ; elsewhere the presence of foreign-affiliated 
companies remains negligible.23 
1.21.  The United States, the European Union, and Thailand were the major recipients of outward 
foreign direct investment by Japan in 2013. The main industries/sectors invested in were finance and insurance, communications, mining, and wholesale and retail. 
1.22.  Since December 2011, Japan has been implementing the "Program for Promoting Japan as 
an Asian Business Centre and Direct Investment into Japan". Location subsidies, tax incentives, 
and reduced patent fees for R&D sites are being offered in the context of this programme. According to the authorities, from FY2010 to FY2014 the total subsidy under this programme 
amounted to ¥4 billion. 
1.3  Outlook 1.23.  Japan aims to achieve strong and sustaina ble growth in the future by encouraging private 
investment, increasing productivity, and enhancing competitiveness. Structural reforms are thus 
                                               
19 Japan's annual inflows of FDI peaked in 2007-08, but were negative in 2010-11 meaning that the 
funds repatriated by foreign investors exceeded the new investments they made. In 2013, FDI inflows reached US$2.3 in 2013 (Table 1.3). By comparison, in 2013, the United States and China recorded inflows of US$188 billion and US$124 billion, respectively. UNCTAD (2014). 
20 Japan ranks 27th out of 189 countries in the World Bank's Doing Business 2014  index (compared with 
20th in 2012); it ranks 140th with regard to paying taxes, 120th with respect to starting a business, and 91st on 
dealing with construction permits. Worl d Bank online information. Viewed at: 
http://doingbusiness.org/rankings . 
21 The Government has expanded tax incentives to encourage firms to raise wages. In December 2013, 
the Government reached an agreement with representatives of employers and labour unions on the need to 
increase wages. As a result, many major firms have agreed to increase base wages and bonuses in 2014. 
22 For example, Japan's implemented overseas direct investment into  Indonesia reached US$2.5 billion 
in 2012. Oxford Analytical Daily Brief, 25 June 2014. 
23 Oxford Analytical Daily Brief, 21 July 2014. WT/TPR/S/310/Rev.1 • Japan 
 
- 17 - 
 
  envisaged in areas such as agriculture, energy, and healthcare.24 Regarding the latter, Japan aims 
to expand: the market size of health care, disease prevention and other life-related industries from ¥4 trillion currently to ¥10 trillion in 2020; the market size of pharmaceutical products, medical equipment, regenerative medicine and other medical-care-related industries from ¥12 trillion to 
¥16 trillion.  
1.24.  Some of the principles of the structural reforms being undertaken include: expanding the 
utilization of public-private partnerships and private finance initiatives (PPP/PFI) in infrastructure 
projects from ¥4.1 trillion to ¥12 trillion over the next ten years; and promoting corporate 
investment. The aim is to enhance the ratio of business start-ups to exceed the ratio of business closures from the current rate of around 5% to  above 10%, and increase the return of capital 
investment from ¥63 trillion in FY2012 to ¥70 trillion per year. Moreover, Japan is taking steps to: 
increase its trade under RTAs to 70% by 2018 (up from 19% in 2013) (section 2.3.2); attract 
30 million international tourists by 2030 (up from some 10.4 million people in 2013); and accelerate reconstruction in the northeast of the country in anticipation to the 2020 Olympics. 
1.25.  As part of the third arrow of structural  reforms and in light of demographic challenges, 
on 24 June 2014 the Government released its "Revised Japan Revitalization Strategy" aimed at becoming a world-class business centre by attracting global companies. The strategy includes 
increasing the use of foreign workers and enhancing workforce participation of women, youth and 
the elderly.
25 To improve corporate productivity, the Government is considering allowing a "high 
level professional working system" based not on wo rking hours but on performance. The plan also 
includes a corporate governance code for listed companies, and a revision of the portfolio of the 
US$1.26 trillion Government Pension Investment Fund (GPIF) was completed on 31 October 2014. 
1.26.  Another key demographic challenge facing the economy of Japan is to fund its social 
security system, mainly related to pensions and health care. Given present trends, Japan's 
population is expected to decrease from 127 million today to 87 million in 2060 when about 40% 
of the population will be 65 (currently the retire ment age) or older. For this reason, a cabinet 
decision was recently taken to ensure a population of 100 million by 2060 which is based, inter 
alia, on the assumption that the fertility rate in 2030 would be 2.07%.  
1.27.  The Government also intends to press ahead with regulatory reforms, including by utilizing 
the newly designated six National Strategic Special Zones (NSSZ): Tokyo and Kansai areas designated as "the international business and innovation hubs"; Niigata and Yabu cities, and 
Fukuoka city as "the reform centres for agricult ure and employment system", respectively; and the 
Okinawa prefecture as the international tourism centre. 
                                               
24 The Government has set up an Industrial Compet itiveness Council and a Regulatory Reform Council. 
On 14 June 2013, "Japan's Revitalization Strategy" wa s launched, which was followed by the "Agenda for the 
Evolution of the Growth Strategy" on 20 January 2014. The Industrial Competitiveness Enhancement Act was 
also enacted in January 2014. On 24 June 2014, "Japan's Revitalization Strategy" was revised. By June 2014, the Diet had passed 38 bills out of 40.  
25 Improve female (25 to 44 years of age) participat ion in the workforce from the current rate of 68% 
to 73% by 2020; reduce by 20% the number of long-term unemployed (more than 6 months) over the next five years, as well as increase the rate of employment change and new hiring from 7.4% in 2011 to 9%; and 
double the number of international students by 2020. To spur more women to enter the workforce, the plan 
aims to establish after-school programmes for an additional 10,000 school-age children. It will also consider modifying tax and pension rules that currently fa vour stay-at-home wives over working women. WT/TPR/S/310/Rev.1 • Japan 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  General Framework 2.1.  Several government ministries are responsible for general trade policy in Japan including the 
Ministry of Foreign Affairs (MOFA), and the Ministry of Economy, Trade and Industry (METI), while 
several other ministries are responsible for specific issues or sectors such as: the Cabinet Office; 
the Ministry of Finance; the Ministry of Agricu lture, Forestry and Fisheries; the Ministry of 
Education, Culture, Sports, Science and Technolo gy; the Ministry of the Environment; and the 
Ministry of Land, Infrastructure, Transport and Tourism. In addition, several government agencies 
also have an input into certain aspects of trade policy such as the Bank of Japan, and the Japan 
External Trade Organization, while the Customs and Tariff Bureau is part of the Ministry of Finance. 
2.2.  In the Diet, there are several committees responsible for various aspects of trade including 
the committees on: Economy, Trade and Industry; Financial Affairs; Forestry and Fisheries; and Fundamental National Policies. Overall coordination of trade policies rests with the Cabinet and 
responsibility for trade-related legislation with the Cabinet and Diet. In planning and implementing 
a trade policy, the relevant ministry or government agency prepares a proposal and consults with other relevant governmental bodies. They submit their views and comments concerning the 
proposal. After obtaining approval from all the relevant ministries/agencies, the proposal becomes 
government policy. Regarding drafting of laws and governmental regulations, the relevant ministry 
or agency consults with all government bodies on the contents of a draft, and reflects their comments before the ministry in charge prepares a draft bill or regulation to be approved by the 
Cabinet and, where required, sent to the Diet for debate. There are many laws and regulations 
relating to trade with the principle laws in Table 2.1. 
Table 2.1 Major trade-related laws  and regulations, October 2014 
Legislation Most recent 
amendment
Foreign trade and exchange restrictions  
Foreign Exchange and Foreign Trade Act (1949 Law No. 228)  2009 
Export and Import Transaction Act (1952 Law No. 299)  2013 
Foreign Exchange Order (1980 Order No. 260)  2014 
Export Trade Control Order (1949 Order No. 378)  2013 
Import Trade Control Order (1949 Order No. 414)  2009 
Customs- and tariff-related regulations  
Customs Law (1954 Law No. 61)  2013 
Customs Tariff Law (1910 Law No. 54)  2014 
Temporary Tariff Measures Law (1960 Law No. 36)  2014 
Cabinet Order Relating to Countervailing Duties (1994 Order No. 415)  2009 
Cabinet Order Relating to Anti-Dumping Duties (1994 Order No. 416)  2009 
Cabinet Order Relating to Emergency Duties (1994 Order No. 417)  2009 
Cabinet Order Relating to Retaliatory Duties (1994 Order No. 418)  2000 
Cabinet Order on Tariff Quotas (1961 Order No. 153)  2014 
Trade promotion  
Trade and Investment Insurance Act (1950 Law No. 67)  2014 
Services and energy   
Construction Business Act (1949 Law No. 100) 2014 
Banking Law (1981 Law No. 59)  2011 
Insurance Business Law (1995 Law No. 105)  2011 
Financial Instruments and Exchange Law (1948 Law No. 25)  2011 
Telecommunications Business Act (1984 Law No. 86)  2014 
Law Concerning the Measures by Large-Scale Retail  Stores for Preservation of Living Environment 
(1998 Law No. 91)  2000 
Employee's Pension Insurance Law (1954 Law No. 115) 2011 
Civil Aeronautics Act (1952 Law No. 231)  2014 
Marine Transportation Law (1949 Law No. 187)  2012 
Act on Special Measures Concerning the Handling of Legal Services by Foreign Lawyers (1986 
Law No. 66)  2014 
Certified Public Accountants Act (1948 Law No. 103)  2011 
Certified Tax Accountant Law (1951 Law No. 237)  2007 
Law for Improvement of International Tourist Hotels (1949 Law No. 279)  2011 
Travel Agency Law (1952 Law No. 239)  2011 WT/TPR/S/310/Rev.1 • Japan 
 
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  Legislation Most recent 
amendment
Electricity Business Act (1964 Law No. 170)  2014 
Gas Utility Industry Law (1954 Law No. 51)  2012 
Petroleum Stockpiling Act (1975 Law No. 96) 2012 
Act on the Quality Control of Gasoline and Other Fuels (1976 Law No. 88)  2008 
Standards and technical regulations  
Industrial Standardization Act (1949 Law No. 185)  2013 
Law Concerning Standardization and Proper Labelling of Agricultural and Forestry Products (JAS Law) 
(1950 Law No. 175)  2013 
The Act on Securing Quality, Efficacy and Safety of Pharmaceuticals, Medical Devices, Regenerative 
and Cellular Therapy Products, Gene Therapy Products, and Cosmetics (1960 Law No. 145)  2013 
Food Sanitation Law (1947 Law No. 233)  2014 
Quarantine Law (1951 Law No. 201)  2008 
Plant Protection Act (1950 Law No. 151)  2012 
Act on Domestic Animal Infectious Diseases Control (1951 Law No. 166)  2013 
Building Standard Law (1950 Law No. 201)  2011 
Electrical Appliance and Material Safety Law (1961 Law No. 234)  2011 
Consumer Product Safety Law (1973 Law No. 31)  2013 
High Pressure Gas Safety Act (1951 Law No. 204)  2011 
Road Vehicle Law (1951 Law No. 185)  2014 
Act on the Rational Use of Energy (1979 Law No. 49)  2014 
Fire Service Law (1948 Law No.186) 2009 
Intellectual property rights  
Patent Act (1959 Law No. 121)  2014 
Customs Law (1954 Law No. 61)  2013 
Act Against Unjustifiable Premiums and Misleading Representations (1962 Law No. 134)  2014 
Unfair Competition Prevention Act (1993 Law No. 47)  2012 
Utility Model Act (1959 Law No. 123) 2014 
Design Act (1959 Law No. 125)  2014 
Trademark Act (1959 Law No. 127)  2014 
Copyright Law (1970 Law No. 48)  2014 
Civil Code (1896 Law No. 89)  2013 
Agriculture  
Basic Law on Food, Agriculture and Rural Areas (1999 Law No. 106) 2009 
Temporary Law for Compensation Price for Producers of Milk for Manufacturing Use (1965 Law 
No. 112)  2008 
Others  
Administrative Procedure Law (1993 Law No. 88)  2006 
Act Concerning Prohibition of Private Monopolizati on and Maintenance of Fair Trade (Anti-Monopoly 
Act) (1947 Law No. 54) 2013 
Source: Information provided by the Japanese authorities. 
2.3.  In addition to the relevant ministries, several Incorporated administrative agencies (IAA) or 
other types of official agencies are responsible for, or involved in, trade-related activities, including: 
• Japan External Trade Organization (JETRO), which is responsible for trade promotion 
while the Japan Bank for International Cooperation (JBIC) and the Nippon Export and Investment Insurance (NEXI) are the official export credits agencies of Japan; 
• In addition to government ministries, the development and implementation of 
standards are the responsibility a number of agencies including; the Japanese Industrial Standards Committee; the Pharmaceuticals and Medical Devices Agency; the National Public Safety Commission; the Consumer Affairs Agency; and the Government 
Regulatory Unit; 
• Japan Oil, Gas and Metals National Corporation provides technical and financial support 
for exploration and development of minerals both in Japan and abroad; and 
• Japan National Tourism Organization which promotes tourism and tourism-related 
services in Japan. WT/TPR/S/310/Rev.1 • Japan 
 
- 20 - 
 
  2.2  Trade Policy Objectives 
2.4.  Under the third arrow of Abenomics, on stru ctural reform, there have been several significant 
developments in Japan's economic policy, including global economic integration which includes trade policy. The diminishing surplus on the curre nt account and persistent trade deficits have 
increased emphasis on improving competitiveness through a favourable business environment, 
both within and outside Japan. Therefore, the focus of Japan's trade policy under Abenomics includes: 
• extending its network of economic partnership agreements (see below);  
• strategic approaches to emerging economies to support expansion by Japanese 
enterprises, export infrastructure and system s, and to secure supplies of resources; and 
• promoting foreign direct investment into Japan (see below).
1  
2.3  Trade Agreements and Arrangements 
2.3.1  WTO 2.5.  Japan grants MFN or preferential treatment to a country or territory that meets one or more 
of the following criteria: it is a Member of the WTO; it is covered by a provision of the Cabinet 
Order under Article 5 of the Customs Tariff Law; or with whom Japan has a bilateral treaty of commerce and navigation. At present that includes all countries and territories except Andorra, 
Equatorial Guinea, the State of Eritrea, Lebanon, the Democratic People's Republic of Korea, 
South Sudan, and the Democratic Republic of Timor-Leste.  
2.6.  According to the authorities, maintaining and strengthening the multilateral trading system 
under the WTO has been a main pillar of Japan's external economic policy. As one of the major 
Members of the WTO, Japan is committed to supporting the system. At the same time, Japan is 
also promoting bilateral and regional negotiations on economic partnership agreements as a means of complementing the multilateral trading system.  
2.7.  Japan actively participates in the WTO in both regular work and in negotiations. In recent 
years it has focused on the Trade Facilitation Agreement and is a party to the plurilateral 
negotiations on expanding the Information Technology Agreement, trade in services, and 
Environmental Goods Agreement. 
2.8.  In dispute settlement, Japan has been a complainant in 19 cases, a respondent in 15, and a 
third party in 146 cases (Table A2.1). Japan has submitted numerous notifications under the different WTO agreemen ts (Table A2.2). 
2.3.2  Regional and preferential agreements 
2.9.  Current policy for negotiating Economic Part nership Agreements (EPAs) is based on the Japan 
Revitalization Strategy, decided by Cabinet in 2013 and, before that, the Basic Policy on 
Comprehensive Economic Partnerships of 2010. Un der the Strategy, "the Government will raise 
FTA ratio from current 19% to 70% by 2018, by promoting economic partnership as a basis of 
global economic activities". The FTA ratio is defi ned as the percentage of the volume of trade to 
which FTAs (signed or in force) are applied in total trade volume of Japan. The Strategy confirms 
that work on several EPAs will proceed concurrent ly (including the Trans-Pacific Partnership (TPP), 
the Regional Comprehensive Economic Partnership (RCEP), the Japan-China-Republic of Korea FTA, and the Japan-EU EPA). 
2.10.  As at November 2014, the network of 13 regional trade agreements or EPAs in force is the 
same as that reported in the last Trade Policy Review.
2 Under these agreements, Japan has tended 
to exclude a variety of agricultural and related products – particularly certain tariff lines for meat 
                                               
1 METI (2014b), p. 20. 
2 WTO document WT/TPR/S/276/Rev.1, 18 June 2013, Table AII.3. WT/TPR/S/310/Rev.1 • Japan 
 
- 21 - 
 
  and meat products, fish and fish products, dairy products, rice, products of the milling industry, 
plywood, leather and products thereof, and footwear. 
2.11.  During the period under review, the Japan-Australia EPA (JAEPA) was signed (July 2014) 
and agreement in principle was reached on the Japan-Mongolia EPA in the same month.  
2.12.  In 2013 Japan began negotiations with China and the Republic of Korea on a China-Japan-
Republic of Korea free trade agreement in March, with the European Union in April, started negotiations on the Regional Comprehensive Economic Partnership in May, entered the 
negotiations on the Trans-Pacific Partnership in July, and Japan and Turkey held a scoping meeting 
on a possible EPA in June. EPA/FTAs with Canada, Colombia, the Gulf Cooperation Council, and the Republic of Korea are under negotiation (Table 2.2). 
Table 2.2 Trade agreements concluded by, not yet in force and under negotiation 
Title Launched Status Note
Australia April 2007 Signed, July 2014
Mongolia June 2012 Agreement in 
principle, July 2014 
China-Japan-Republic of Korea March 2013 Under negotiation
Regional Comprehensive 
Economic Partnership  May 2013 Under negotiation ASEAN (Brunei Darussalam, Cambodia, Indonesia, 
Laos, Malaysia, Myanmar, the Philippines, 
Singapore, Thailand, Viet Nam), Australia, China, 
India, Japan, Republic of Korea, and New Zealand 
Trans-Pacific Partnership July 2013 
(Japan joined) Under negotiation Australia, Brunei Darussalam, Canada, Chile, 
Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Viet Nam 
European Union April 2013 Under negotiation
Canada November 2012 Under negotiation
Colombia December 2012 Under negotiation
Gulf Cooperation Council September 2006 Under negotiation Kingdom of Bahrain, State of Kuwait, Oman, 
Qatar, Kingdom of Saudi Arabia, United Arab Emirates 
Republic of Korea December 2003 Under negotiation
Source: Various. 
2.3.3  Other agreements and arrangements 
2.13.  Japan provides preferential access und er the Generalized System of Preferences 
to 144 countries or territories. Since the last review of Japan, Samoa was taken off the list in April 2014 because it was no longer classified as a least-developed country, and Croatia 
graduated from the list because it had been classified as a high-income economy in the previous 
three years' World Bank statistics. 
2.14.  Under the GSP scheme, preferential tariff rates apply to 409 tariff lines out of 2,320 (at the 
9-digit level) in Chapters 1 to 24 (agriculture and fisheries) and 3,153 out of 7,029  in Chapters 25 
to 97.
3 The preferential margin varies from one product to another and the main exclusions are 
rice and rice products, meat and meat products, fish, dairy products, pineapples, cereal products, textiles and clothing, leather and leather products, and footwear. 
2.15.  Forty-seven of the countries and territories that receive GSP treatment are least-developed 
countries and qualify for more extensive product coverage under Japan's duty-free and quota-free treatment for LDCs. Currently, about 98% of tariff lines are covered.  
2.16.  Product coverage under the duty-free quota-free scheme for least developed countries and 
the GSP scheme is reviewed each year as part of  the annual tariff revision. The GSP scheme itself 
is revised every ten years with the next revision due in 2021. 
2.17.  Japan has been a Member of APEC since its foundation in 1989 and a member of the Asia-
Europe Meeting (ASEM). 
                                               
3 Japanese authorities. WT/TPR/S/310/Rev.1 • Japan 
 
- 22 - 
 
  2.4  Investment Regime  
2.18.  As noted in section 1, Japan's inward FDI remains significantly lower than outward FDI and 
low compared with other developed economies (section 1.2.2). Japan is ranked 27th out 
of 189 economies in the World Bank's Doing Business report for 2014 and its ranking varies 
considerably from one heading to another: while Japan is ranked first for resolving insolvency; it is 
ranked 140th for paying taxes; and 120th for starting a business.4  
2.19.  According to the authorities the only provisions that affect FDI directly are in the Act for 
Promotion of Japan as an Asian Business Center of 2012 which provides incentives to encourage 
investment in establishing Research and Development and Regional Headquarters, primarily through tax breaks, including corporate and income  tax breaks. However, ma ny other laws affect 
investment, including the Foreign Exchange and Foreign Trade Act, the Order on Inward Foreign 
Direct Investment, and the Foreign Exchange Order.
5  
2.20.  The Act on National Strategic Special Zones of 2013 allows for the designation of zones 
where regulatory reform is expected to lead to increased investment. According to the authorities, 
precise details for each zone are to be decide d by consensus between the national government, 
local authorities, and the private sector. 
2.21.  In March 2014, six National Strategic Special Zones were identified with three objectives: 
• the Tokyo zone and the Kansai zone for comprehensive regulatory reform with the aim 
of establishing them as bases for international business and innovation; 
• the Niigata City zone, the Yabu City zone, and the Fukuoka City zone with the aim of 
regulatory reform for agriculture and employment; and 
• the Okinawa Prefecture zone for tourism-focused business.6 
2.22.  Under the revised Japan Revitalization Strategy of 2014, the objective of strengthening the 
competitiveness of Japan and promoting investment requires "accelerating the TPP and other 
economic partnership negotiations to remove obstacles to the cross-border movement of goods, 
services and investment; fundamentally reforming energy policy to prevent energy costs, including electricity rates, from rising; carrying out a pro-growth corporate tax reform and "so on" and sets 
a target of doubling investment by foreign companies in Japan to ¥35 trillion by end-FY2020. 
These objectives are to be achieved through several initiatives including: regulatory reform to improve the business climate; support measures for investment; enhancing National Strategic Special Economic Zones; and improving the system for the resolution of labour disputes.
7 
2.23.  The Council for Promotion of Foreign Direct Investment was established by the Government 
in April 2014 following a recommendation by the Expert Group Meeting on Foreign Direct Investment in Japan. The Expert Group noted the low level of FDI in Japan and identified several 
contributory factors:  
• an inflexible labour market and low participation by women in the labour force as well 
as language skills; 
• corporate governance, particularly the low focus on improving shareholders' returns; 
• relatively high energy and distribution costs, the costs of meeting Japan's quality and 
safety standards and, particularly for agricultural raw materials, high costs of inputs; 
• high nominal and effective rates of corporation tax and costs of complying with the tax 
system as well as other administration costs such as setting up businesses.  
                                               
4 World Bank (2013), p. 200. 
5 WTO document WT/TPR/S/276/Rev.1, 18 June 2013, section II(3). 
6 Kantei (2014), p. 88. 
7 Kantei (2014). WT/TPR/S/310/Rev.1 • Japan 
 
- 23 - 
 
  2.24.  The Expert Group made a number of re commendations including reducing the tax and 
administrative costs, improving human resources, harmonization and simplification of licensing and 
approval systems, and promotion of EPAs, tax ag reements, and other bilateral investment-related 
treaties.8 
2.25.  The FY2014 Subsidy Program for Projects  Promoting Foreign Direct Investment, Site 
Location and Regional Development in Japan (Project of site location for global companies) provides subsidies of up to ¥500 million for the costs of survey design, purchasing or leasing 
facilities and equipment for global companies establishing regional headquarters or research and 
development sites in Japan. Seven projects were selected in FY2014. Four projects were selected in each year under the equivalent FY2012 and 2013 programmes.
9 
2.26.  Japan has bilateral investment treaties with 31 countries/territories, including ten bilateral 
trade agreements which include investment provisions (Table 2.3) (an agreement with Colombia 
was signed in 2011 but is not yet in force). 
Table 2.3 Bilateral investment treaties in force 
(country and year they were signed) 
Investment treaties 
Egypt (1977) 
Sri Lanka (1982) China (1988)  Turkey (1992) Hong Kong, China (1997) Bangladesh (1998) Pakistan (1998) Russian Federation (1998) Mongolia (2001) 
Korea, Republic of (2002) Viet Nam (2003) Cambodia (2007) Lao People's Democratic Republic (2008) Peru (2008)  Uzbekistan (2008)  Papua New Guinea (2011) 
Iraq (2012) Kuwait, the State of (2012) Japan; China; and Korea, Republic of (2012) Mozambique (2013) Myanmar (2013) 
Regional trade agreements with investment provisions 
Singapore Chile Brunei India Mexico 
Thailand Philippines Malaysia Indonesia 
Switzerland 
Source: Japanese authorities. 
2.27.  In addition, Japan has, or is a party to, 62 tax conventions applicable to 85 jurisdictions, 
including other signatories to the Convention on Mutual Administrative Assistance in Tax Matters (Table 2.4). 
Table 2.4 Tax conventions 
Country/ 
territory Avoidance 
of double 
taxation 
and 
prevention 
of fiscal 
evasion 
Tax information 
exchange Convention on 
mutual 
administrative 
assistance in 
tax matters Country/ 
Territory Avoidance 
of double 
taxation 
and 
prevention 
of fiscal 
evasion 
Tax information 
exchange Convention on 
mutual 
administrative 
assistance in 
tax matters 
Albania   * Korea, Republic of *  *
Argentina   * Kuwait, the State of *  
Armenia *  Kyrgyz Republic *  
Australia *  * Liechtenstein * 
Austria *  Lithuania  *
Azerbaijan *  * Luxembourg *  *
Bahamas  * Macao, China * 
Bangladesh *  Malaysia *  
Belarus *  Malta  *
Belgium *  * Mexico *  *
Belize   * Moldova, Republic of *  *
Bermuda  * Netherlands *  *
Brazil *  New Zealand *  *
Brunei Darussalam *  Norway *  *
                                               
8 Cabinet Office (2014). 
9 METI online information. Viewed at: 
http://www.meti.go.jp/english/ policy/external_economy/investment/index_FDI_into_Japan.html  
[October 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
- 24 - 
 
  Country/ 
territory Avoidance 
of double 
taxation 
and 
prevention 
of fiscal 
evasion 
Tax information 
exchange Convention on 
mutual 
administrative 
assistance in 
tax matters Country/ 
Territory Avoidance 
of double 
taxation 
and 
prevention 
of fiscal 
evasion 
Tax information 
exchange Convention on 
mutual 
administrative 
assistance in 
tax matters 
Bulgaria *  Oman *  
Canada *  * Pakistan *  
Cayman Islands  * Philippines *  
China *  Poland *  *
Colombia   * Portugal *  
Costa Rica   * Romania *  
Croatia   * Russian Federation *  
Czech Republic *  * Samoa * 
Denmar k *  * Saudi Arabia, Kingdom of *  
Egypt *  Singapore *  
Fiji *  Slovakia *  *
Finland *  * Slovenia  *
France *  * South Africa *  *
Georgia *  * Spain *  *
Germany *  Sri Lanka *  
Ghana   * Sweden *  *
Greece   * Switzerland *  
Guernsey  * * Tajikistan *  
Hong Kong, China *  Thailand *  
Hungary *  Tunisia  *
Iceland   * Turkey *  
India *  * Turkmenistan *  
Indonesia *  Ukraine *  *
Ireland *  * United Kingdom *  *
Isle of Man  * United States *  *
Israel *  Uzbekistan *  
Italy *  * Vietnam *  
Jersey  * Zambia *  
Kazakhstan *   
Source: MOF online information. Viewed at: 
http://www.mof.go.jp/english/tax_policy/tax_conventions/international_182.htm  [October 2014]. 
 
 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 25 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Customs procedures and requirements 3.1.  Since Japan's last review in 2013, there has been little change to customs clearance 
procedures and requirements. Japan Customs, under the Ministry of Finance, continues to 
administer and enforce customs legislation. Ther e are no special registration requirements for 
importers and the use of a customs broker is optional.
1 A customs import declaration is needed for 
importation, in addition to other documents wh ich may be required through risk management, 
such as bill of lading, commercial invoice, and packing list. Electronic application formalities between various agencies have been unified through the completion of the common portal for the next generation single window. Currently seven customs offices are permanently open. 
3.2.  Japan Customs introduced the Authorized Economic Operator (AEO) programme 
in March 2006 and subsequently developed it to simplify customs procedures and facilitate legitimate trade.
2 Importers, exporters, manufacturers, warehouse operators, customs brokers, 
and logistics operators are eligible to become AEOs in Japan. Importers with cargo security 
management and a good compliance record may file import and customs duty declarations separately; this allows goods to be released before filing the customs duty declaration; import 
declarations may be filed in advance of cargo arrivals.  
3.3.  As at 1 April 2014, the total number of AEOs was 523 (compared with 501 on 1 April 2013). 
Following progressive improvements in Japan's AEO scheme, the release time for AEO import cargoes has been reduced significantly. Accordin g to the latest time-release study conducted 
in March 2012 on maritime cargoes, the release time was 0.1 hours (6 minutes) for AEO import 
cargoes as against 2.6 hours (156 minutes) for non-AEO import cargoes. On air cargoes, less than one minute was needed for AEO import cargoes compared to 0.3 hours (18 minutes) for non-AEO 
import cargoes.
3 
3.4.  Japan has mutual recognition arrangements (MRAs) on AEO programmes with Canada, the 
European Union, the Republic of Korea, Malaysia , New Zealand, Singapore, and the United States. 
Under these MRAs, Japan Customs takes into account the status of the members of the other AEO 
programme when conducting its own risk assessmen t. Japan is in consultations with Switzerland 
on the possibility of having MRAs on AEOs. 
3.5.  Japan ranks 20th (out of 189 economies) in the Wo rld Bank's Trading Across-Borders 2015 
Index; import procedures take 11 days and cost US$1,107 per container (compared with 11 days 
and US$970 per container in 2013).4 The Japanese authorities indicate that this data refers to 
import procedures other than customs. Customs fees and charges are described in the website 
of Japan Customs.5 
3.1.2  Customs valuation 3.6.  During the review period, Japan amended so me provisions concerning the determination of 
customs value of imported goods in customs-related laws and regulations with the aim of 
improving their clarity particularly for complicated transactions (e.g. conditions of buyer and buying commission have been simplified). 
                                               
1 According to Article 3 of the Law of Customs Brokerag e, to operate as a customs broker an approval is 
required from the Director of Customs. 
2 In 2005, the World Customs Organization adopted th e SAFE Framework of Standards which includes 
the Authorized Economic Operator (AEO) programme. AEOs  must prove to have high quality internal processes 
that will prevent goods in international transport being tampered with. This facilitates trade for low-risk operators and ensures Customs can focus inspection resources on more high-risk parties.  
3 Japan Customs (2012). 
4 World Bank Group online information. Viewed at: 
http://doingbusiness.org/data/exploreeconomies/Japan .  
5 Japan Customs online information. Viewed at: http://www.customs.go.jp/english/exp-
imp/customsfee.htm . WT/TPR/S/310/Rev.1 • Japan 
 
- 26 - 
 
  3.7.  All importers must file a customs declaration basically after goods have entered into a 
bonded (hozei) area; this may now be done without entry of goods into the bonded area under certain conditions, such as an authorized importer presenting an import declaration with the Electronic Data Processing System. The customs va lue of imported goods is determined according 
to their c.i.f. price (in principle based on the transaction value of the imported goods). 
3.8.  Importers may pay the assessed customs du ty through the multi-payment network system. 
The network connects teller institutions (government authorities) with financial institutions. The 
Government does not charge any fee for the use of the system; however, the financial institutions 
involved may collect fees. An advance ruling, which is issued in writing by Customs upon written request of an applicant, is binding on such Custom s in respect of the applicant that sought it. An 
applicant includes not only importers but also other relevant parties. Information in writing on 
advance rulings are made available through the internet on the website of Japan Customs.
6 
3.9.  Complaints against Customs' decisions may be made to the Director-General of Customs 
within two months of the decision. Further appeals may be lodged with the Minister of Finance 
within one month of the decision by the Direct or-General of Customs. A lawsuit may be filed 
against the Minister's decision within six months of such decision. According to the authorities, 
in 2013 there were 43 complaints (as in 2012), 18 appeals (as compared to eight in 2012), and 
five law suits were filed (compared to three in 2012). 
3.1.3  Rules of origin 3.10.  Japan has notified the WTO that it has non-preferential rules of origin.
7 
3.11.  Japan provides preferential rules of orig in under the Generalized System of Preferences 
(GSP) and its various RTAs/EPAs (section 2). To benefit from preferential duties, certificates of 
origin need to be provided, issued by authorized institutions in the exporting country8, in order to 
prove that the product being imported is basically "wholly obtained" or "substantially transformed" 
(e.g. change of tariff classification at the HS 4-digit or 40% of value added) in the exporting 
country. For goods "not wholly obtained", specific criteria based on change of tariff classification rules, processing rules, and value added rules are applied on a product-by-product basis. Rules of 
origin under EPAs and the GSP apply these specific criteria for various products. 
3.12.  Japan's MFN rules of origin to determine, inter alia,  whether to apply MFN rates (as opposed 
to general rates) are detailed in Article 4-2 of  the Cabinet Order for Enforcement of the Customs 
Law, and Articles 1-5 and 1-6 of the Ordinance for Enforcement of the Customs Law.
9 MFN tariff 
rates are applicable to imports from eligible countries, where the country of origin is defined as the 
country in which the goods concerned have been wholly obtained or have undergone substantial 
transformation (change of tariff classification at the HS 4-digit level). 
3.1.4  Tariffs 
3.1.4.1  MFN applied tariff 3.13.  Goods imported into Japan may be subject to customs tariffs, consumption tax (VAT), and 
excise duties on products such as liquor, tobacco, gasoline, LPG, and automobiles (section 3.3.1).  
3.14.  The structure of Japan's MFN applied tariff has remained largely unchanged over the last 
few years. In FY2014, Japan's tariff schedule comprised 9,151 lines (down from 9,168 in FY2012) at the HS nine-digit level (Table 3.1).
10 Of all tariff lines, 93.3% involve ad valorem  rates 
                                               
6 Japan Customs online information. Viewed at: http://www.customs.go.jp/english/ . 
7 WTO documents G/RO/N/1, 9 May 1995 and G/RO/N/1/Add.1, 22 June 1995. 
8 In EPAs with Mexico, Peru, and Sw itzerland certificates may also be  issued by approved exporters. 
9 The MFN rules of origin are also used to determ ine the country of origin for some trade remedy 
measures and import trade statistics.  
10 Excluding in-quota lines (in-quota lines subject to state trading are included in the calculations). The 
Japanese tariff schedule has three dist inct sets of rates: statutory rates (include both general and temporary 
rates); WTO bound rates; and prefer ential rates (under the GSP, and RTAs/EPAs with Brunei Darussalam, 
Chile, India, Indonesia, Malaysia, Mexico, Peru, Philippine s, Singapore, Switzerland, Thailand and Viet Nam). In 
the case of statutory rates, the "tem porary" rate, which is reviewed annual ly, is normally used instead of the WT/TPR/S/310/Rev.1 • Japan 
 
- 27 - 
 
  (including duty free lines which are 40.4% of all lines). The remaining 6.7% (i.e. 613 lines) are 
non-ad valorem : specific rates are applied to 2.6% of the lines; 3.1% have alternate specific duty 
or ad valorem ; 0.6% have compound rates; and other types of tariff (differential duties and sliding 
duties) apply to 0.3% of tariff lines (Chart 3.1).11  
Table 3.1 Structure of MFN ta riffs, FY2010, FY2012 and FY2014 
(%, unless otherwise indicated) 
 MFN applied Final 
bounda   FY2010 FY2012 FY2014 
Bound tariff lines (% of all tariff lines) 98.8 98.3 98.3 98.3 
Simple average rate 5.8 6.3 5.8 5.9 
 WTO agricultural products 15.7 17.5 14.9 15.2 
 WTO non-agricultural products 3.5 3.7 3.7 3.7 
Duty free tariff lines (% of all tariff lines) 41.4 40.5 40.4 38.7 
Simple average rate of dutiable lines only 10.0 10.7 9.9 9.8 
Domestic tariff "peaks" (% of all tariff lines)b 6.6 6.6 6.6 6.7 
International tariff "peaks" (% of all tariff lines)c 7.4 7.6 7.4 7.5 
Overall standard deviation of tariff rates 16.0 20.5 14.3 14.5 
Coefficient of variation of tariff rates 2.7 3.2 2.4 2.4 
Tariff quotas (% of all tariff lines) 1.8 1.8 1.8 1.8 
Non-ad valorem  tariffs (% of all tari ff lines) 6.6 6.7 6.7 6.3 
Non-ad valorem  tariffs with no AVEs (% of all tariff lines) 2.0 1.5 1.8 1.5 
Nuisance applied rates (% of all tariff lines)d 1.3 1.5 1.5 1.4 
Number of lines 8,826 9,168 9,151 8,992 
Ad valorem  rates 4,590 4,839 4,840 4,875 
Duty free lines 3,652 3,714 3,698 3,542 
Non-ad valorem  rates 584 615 613 734 
Specific 207 236 236 228 
Compound 56 57 57 58 
Alternate 289 290 288 289 
Other 32 32 32 0 
a Final bound rates are based on the FY2014 tariff schedule in HS12 nomenclature. Calculations are 
based on bound rates only. 
b Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: All tariff calculations exclude in-quota lines and include AVEs, as available, provided by the Japanese 
authorities. In case of unavailability, the ad valorem  part is used for compound and alternate rates. 
FY2010 tariff schedule is based on HS07 nomenclature and FY2012 and FY2014 are based on HS12. 
Source: WTO calculations, based on da ta from Japan Customs. Viewed at: 
http://www.customs.go.jp/english/tariff/2014_4/index.htm . 
3.15.  The non- ad valorem  rates apply mainly to fats and oils, followed by footwear, prepared 
foods, mineral products, vegetables, live animals and animal products, and textiles and clothing 
(Chart 3.2).  
                                                                                                                                               
higher general rate; the lower of the statutory and WT O bound rates are applied to WTO Members on an MFN 
basis, except when preferential rates are applied. Where the temporary, general, or preferential rate is above 
the WTO bound rate, the latter rate applies to WTO Members.  
11 An alternate duty involves either an ad valorem  or specific rate; usually the higher of the two is 
applied (except in the case of HS2204.21-2 and HS2204.29-1). A compound duty involves a combination of ad valorem  and specific rates. A differential duty involves a specific rate ch arged per kg of imports with the 
rate varying directly with the differe nce between the standard import price, set by the authorities, and actual 
import price. A sliding duty involves a specific tariff rate  for imports valued up to a certain threshold; the rate 
declines as the value exceeds the threshold and becomes zero at a certain point. WT/TPR/S/310/Rev.1 • Japan 
 
- 28 - 
 
  Chart 3.1 Tariff distribution by type of duty, FY2014 
Ad valorem duty
52.9%
Duty free
40.4%Non-ad valorem duty
6.7%
Alternate duty  3.1%Specific duty  2.6%
Other  0.3%Compound duty  0.6%
 
Source: WTO Secretariat calculations, based on data from Japan Customs. Viewed at: 
http://www.customs.go.jp/english/tariff/2014_4/index.htm.  
Chart 3.2 Share of non- ad valorem  duties, by HS section, FY2014 
(77)(66)(37)
(126)
(35)
(4)(0)(0)(0)(0)(213)(25)
(0)(0)(28)
(0)(0)(0)(0)(2)(0)(613)
0%5%10%15%20%25%30%35%40%45%
Live animals & prod.
Vegetable products
Fats and oils
Prepared food, etc.
Mineral prod.
Chemicals & prod.
Plastic & rubber
Hides & skins
Wood & articles
Pulp, paper, etc.
Textiles & articles
Footwear
Articles of stone
Precious stones, etc.
Base metals & prod.
Machinery
Transport equipment
Precision instruments
Arms & ammunition
Misc. manufactures
Works of art, etc.
Total
 
Note: Each bar depicts the percentage of tariff lines within each HS section that carry non- ad valorem  
duties; the figures in parenthese s show the corresponding number of  lines. In-quota rates are not 
included (lines subject to state trading are included). 
Source: WTO Secretariat estimates, based on ba sed on data from Japan Customs. Viewed at: 
http://www.customs.go.jp/english/tariff/2014_4/index.htm . 
3.16.  In FY2014, Japan's overall simple average applied MFN tariff rate was 5.8% (down from 
6.3% in FY2012) (Table A3.1). This reduction is due to lower average ad valorem  equivalents 
(AVEs) of non- ad valorem  duties. The authorities provided for 450 out of 613 AVEs based on WT/TPR/S/310/Rev.1 • Japan 
 
- 29 - 
 
  import data for 2012.12 Consequently, the tariff analysis is based on 98.8% of the 9,151 tariff 
lines. The simple average rate for all the AVEs supplied is 29.7%13; however, the highest rate is 
298.6%, for certain semi-milled or wholly m illed rice. Of the 104 highest tariffs, 96 had 
non-ad valorem  rates. 
3.17.  Import duties on agricultural products are higher than duties on non-agricultural products: 
the simple average for agriculture (WTO definiti on) is 14.9% (17.5% in FY2012), compared with 
3.7% for non-agricultural products (same as in FY2012). Simple average applied MFN tariffs are 
also relatively high for footwear and headgear, prepared foods, vegetables, live animals, hides and 
skins, arms and ammunition, and textiles and clothing (Chart 3.3). 
Chart 3.3 Simple average applied MFN tariff rates, by HS section, FY2012 and FY2014 
0%5%10%15%20%25%30%35%
Live animals & prod.
Vegetable products
Fats and oils
Prepared food, etc.
Mineral prod.
Chemicals & prod.
Plastic & rubber
Hides & skins
Wood & articles
Pulp, paper, etc.
Textiles & articles
Footwear, headgear
Articles of stone
Precious stones, etc.
Base metals & prod.
Machinery
Transport equipment
Precision instruments
Arms & ammunition
Misc. manufactures
Works of art, etc.
TotalFY2012
FY2014
 
Note: Excluding in-quota rates (lines subjec t to state trading are included). Including ad valorem  equivalents 
(AVEs) provided by the Japanese authorities, as available. The ad valorem  part of compound and 
alternate rates are used where AVEs are not available.  
Source: WTO Secretariat calculations, based on data from Japan Customs. Viewed at: 
http://www.customs.go.jp/english/tariff/2014_4/index.htm . 
3.18.  There are 173 tariff lines (1.8%) subject to MFN tariff quotas: 150 out-of-quota tariffs and 
11 out-of-quota tariffs of state trading (in-quota lines are excluded). The out-of-quota rates for 
35 tariff lines are ad valorem . The average rates differ considerably: in-quota rates average 
18.1%, while out-of-quota rates average 67.1%.  The quota allocation method and process 
remains somewhat intricate (section 4.1).14 
                                               
12 For 29 out of 288 alternate rates no AVE was provided (the ad valorem  part was used in the tariff 
analysis). For 25 out of 57 compound rates no AVE was provided (the ad valorem  part was used). For 89 out 
of 236 specific rates and 20 out of 32 "other duties" rates no AVE was provided.  
13 In comparison, the simple average of the AVEs at  the time of Japan's last review was 37.7%, which 
was based on 2010 imports. 
14 For details of the quota allocation method, see WTO (2001).  WT/TPR/S/310/Rev.1 • Japan 
 
- 30 - 
 
  3.1.4.2  Bound tariff 
3.19.  Japan has bound 98.3% of lines (159 lines  are unbound) (Table 3.1); unbound lines relate 
mainly to fisheries (fish, crustaceans, seaweed),  petroleum oils, and wood and articles thereof. 
Ad valorem rates account for 8,417 bound lines (93.6%), of which 3,542 lines are duty free. The 
difference between the average bound MFN tariff (5.9%) and the average applied MFN tariff 
(5.8%) in FY2014 was neglig ible, which reflects a high degree  of predictability in the tariff.15 Japan 
has not used this gap to raise tariffs during the last few years. However, the average bound rate 
(WTO definition) is considerably higher for agricultural products (15.2%) than for non-agricultural 
products (3.7%).  
3.1.4.3  Preferential tariff 3.20.  Japan offers preferential tariff rates to 137 developing countries and 7 territories under the 
GSP; least developed countries (47 in 2014) receive additional preferences. China remains the 
largest beneficiary of preferential access to the Japanese market; it accounts for over three quarters of all preferential imports under the GSP scheme.
16 Japan also grants preferential access 
under its RTAs/EPAs for imports from ASEAN, Ch ile, Brunei Darussalam, India, Indonesia, 
Malaysia, Mexico, Peru, Philippines, Singapore, Switzerland, Thailand, and Viet Nam (section 2.3.2). 
3.21.  Simple average tariff rates under all preferential arrangements (GSP, LDC, and EPAs) are 
lower than the simple average applied MFN rate s. However, the rates vary widely from one 
product group to another. The overall simple aver age preferential rates range from 0.5% to 4.8%, 
while agriculture is subject to rates from 1.5% to 13.9% (Table 3.2). Tariffs under these 
arrangements are also high for certain processed and industrial goods, such as leather, rubber, 
footwear and travel goods, and textiles and clot hing imports (under GSP); items such as dairy 
products, some footwear, and textiles and clothing are not included in the GSP scheme for 
developing countries and are therefore subject to applied MFN rates of duty. 
Table 3.2 Summary analysis of Japa n's preferential tariffs, FY2014 
 Number of 
preferential 
linesa Total WTO agriculture WTO non-agriculture 
Average 
(%) Duty-free 
rates (%) Average 
(%) Duty-free 
rates (%) Average 
(%) Duty-free 
rates (%) 
MFN  5.8 40.4 14.9 25.9 3.7 44.0 
GSP 2,987 4.8 58.1 13.9 34.6 2.6 63.9 
LDC 5,264 0.5 97.9 1.5 96.7 0.2 98.2 
Economic Partnership Agreements       
Singapore 4,225 3.1 83.4 11.9 49.1 1.1 91.9 
Mexico 4,149 3.1 84.9 13.0 40.4 0.8 95.9 
Malaysia 4,419 2.6 84.7 11.5 49.5 0.5 93.4 
Chile 4,317 2.8 83.1 12.1 49.0 0.6 91.5 
Thailand 4,487 2.6 85.1 11.6 49.6 0.5 93.8 
Indonesia 4,333 2.8 81.4 12.3 43.4 0.6 90.7 
Brunei Darussalam 4,162 3.3 80.9 12.5 42.0 1.1 90.4 
ASEAN 4,500 2.8 80.9 12.3 41.5 0.6 90.6 
Philippines 4,574 2.6 83.1 11.5 46.2 0.5 92.2 
Switzerland 4,339 3.0 80.5 12.5 41.8 0.7 90.0 
Viet Nam 4,468 2.8 82.0 12.4 42.6 0.6 91.7 
India 4,314 3.2 78.8 13.0 40.6 0.8 88.3 
Peru 4,479 3.0 80.4 12.8 41.6 0.6 89.9 
Memorandumb        
Singapore 4,519 2.7 83.9 11.8 49.3 0.6 92.5 
Malaysia 4,523 2.6 85.2 11.5 49.5 0.5 94.0 
Thailand 4,567 2.6 85.1 11.5 49.6 0.5 93.8 
                                               
15 Whereas bound and applied MFN rates coincide for most lines, bound rates exceed applied MFN rates 
for, inter alia,  live animals and animal produc ts (HS Section 1); vegetables (Section 2); prepared foods, 
beverages, and tobacco (Section 4 ); chemicals and products (Section 6); plastics and rubber (Section 7); 
textiles and clothing (Section 11); and base metals (Section 15). The gap between bound and applied rates 
ranges from 0.3 percentage poin ts to 40 percentage points. 
16 Other major beneficiaries of Japan's GSP scheme  include: Myanmar (4.1% of total imports under 
preferential treatment), Bangladesh (3.9%), and South Africa (3.5%). WT/TPR/S/310/Rev.1 • Japan 
 
- 31 - 
 
   Number of 
preferential 
linesa Total WTO agriculture WTO non-agriculture 
Average 
(%) Duty-free 
rates (%) Average 
(%) Duty-free 
rates (%) Average 
(%) Duty-free 
rates (%) 
Indonesia 4,510 2.7 82.3 12.0 43.4 0.5 91.9 
Brunei Darussalam 4,506 2.8 81.5 12.1 42.0 0.6 91.2 
Philippines 4,639 2.6 83.7 11.5 46.2 0.5 92.9 
Viet Nam 4,568 2.7 82.1 12.0 42.6 0.5 91.9 
a The number of preferential lines includes only lines on which the rates are lower than the 
corresponding MFN applied rate. The 2014 MFN tari ff consists of 9,151 tariff lines out of which 
3,698 lines bear a duty-free rate. 
b Based on lowest rate applied fro m country's EPA and the ASEAN EPA. 
Source: WTO Secretariat calculations, based on data from Japan Customs. Viewed at: 
http://www.customs.go.jp/english/tariff/2014_4/index.htm . 
3.1.5  Import prohibitions, restrictions, licensing, and quotas 
3.22.  Imports of certain goods are prohibited under Article 69-11 of Japan's Customs Law. For 
reasons of national security, safeguarding consum er health and well-being, preserving domestic 
plant and animal life and the environment, import s of narcotics, certain weapons, and animals or 
plants listed in the appendices of the Convention  on International Trade in Endangered Species of 
Wild Fauna and Flora (CITES), may be prohibited or subject to import licensing. Japan's Foreign 
Exchange and Foreign Trade Law governs import licensing procedures.17 In addition, some 
commodities, including certain fish, are subject to import quotas. 
3.23.  Items requiring import approval include weapons and other items from the Libyan Arab 
Jamahiriya as per United Nations Security Council Resolution. At present, products that require import approval or are prohibited include: certain marine products, chemical products, propellant 
powders, nuclear goods, weapons, animals and plants, substances that deplete the ozone layer, 
specified hazardous wastes, waste chemical weapons goods, alcohol, rough diamonds, cultural property illegally removed from Iraq, all goods from the Democratic People's Republic of Korea, weapons and other items related to nuclear programmes or ballistic missile programmes from 
Iran, and weapons and other items from the State of Eritrea. Licences to import are issued free of 
cost. 
3.24.  Japan uses quantitative restrictions on imports (import quotas); according to the 
authorities, the quotas adhere to the WTO Agreements. Products subject to import quotas 
(unchanged since 2007) include: certain fish products and controlled substances listed in the Montreal Protocol on Substances that Deplete the Ozone Layer. 
3.25.  The METI is responsible for administering the import quota system. Eligible importers are 
issued with an import quota allocation certificate normally valid for four or six months. The method for allocating quotas, specified in METI notices, has not changed since 2007 and remains somewhat complex. Quota allocations are decided on an annual basis. Fish-related quotas are 
allocated based on domestic supply and demand, e.g.  the amount of imports, domestic production, 
consumption, and prices in the previous year, as well as projections for the coming year. These quotas are issued by the METI with the consent of the Ministry of Agriculture, Forestry and 
Fisheries (MAFF). Applicants for quota allocations must meet various criteria. Some quotas are 
allocated on a first-come first-served basis. When the amount applied for exceeds remaining unallocated quota, quotas are allocated by lottery. 
3.26.  Unused quota entitlements are non-transferable and cannot be carried over to the next 
period. Additionally, the Government does not reallocate any unused quotas. 
3.27.  Japan has in place a system of prior confir mation to collect data on certain imports. The 
system is intended to ensure that these imports are for specific uses, and to verify documentation 
and origin requirements. Prior confirmation is required from the Minister of Economy, Trade and 
Industry, or other relevant minister. The system is used, inter alia , for goods where fraudulent 
declarations have been found in the past or are deemed of high risk. These include: vaccine of 
microbial origin for experimental use; specified foreign cultural property; tuna; marlin; whales; 
                                               
17 This is described in Chart III.3 in WTO (2013). WT/TPR/S/310/Rev.1 • Japan 
 
- 32 - 
 
  poppy and hemp seeds; certain substances listed in the Montreal Protocol; radioisotopes; 
diamonds; and various other chemicals. 
3.1.6  Contingency trade measures 3.28.  Japan has only one anti-dumping duty in  force: 14%-46.5% on electrolytic manganese 
dioxide originating from China, South Africa, and Spain. The period of validity for such 
anti-dumping duties was extended by five years and will expire on 5 March 2019 (it has been in force since September 2008). On 14 February 2014, Japan initiated an anti-dumping investigation 
into toluenediisocyanate from China.  
3.29.  Japan's legislative and institutional framework regarding contingency trade measures 
remain unchanged since its previous review. The Customs Tariff Law and the relevant Cabinet Orders and Guidelines define Japan's legal framework regarding the use of anti-dumping, 
countervailing, and safeguard measures. 
3.30.  Contingency trade remedies investigations are carried out by teams established on a case-
by-case basis and composed of relevant official s from the Ministry of Finance, METI and the 
Ministry in charge of the relevant industry.
18 The Ministry of Finance is involved in an investigation 
as the agency responsible for tariff policy and cu stoms administration (Article 40 of the Cabinet 
Order for Organization of the Ministry of Finance), and the METI carries out an investigation as the 
agency responsible for increase, improvement and adjustment of import and export (Article 6(2) of 
the Cabinet Order for Organization of METI). 
3.31.  Japan applied neither countervailing nor safeguard measures during the review period. 3.1.7  Standards and other technical requirements 
3.32.  The legal framework on standards and technical regulations in Japan has remained largely 
unchanged since its last review. The main laws for implementing the TBT Agreement in Japan, together with the agency responsible, are described in Table 3.3.  
3.33.  Other laws related to standards and technical requirements include (Ministries in charge in 
parentheses): Road Vehicles Act of 1951, last amended in 2014 (MLITT); Act on the Rational Use of Energy of 1979, last amended in 2008, applies to motor vehicles and other products designated 
by Ministerial Order (MLIT)
19; Act Concerning the Safety Assurance and Quality Improvement of 
Feed of 1953, last amended in 2007, applies to animal feeds (MAFF); Act on the Evaluation of 
Chemical Substances and Regula tion of their Manufacture of 1973, last amended in 2014 (MHLW); 
Industrial Safety and Health Act of 1972, last amended in 2014 (MHLW); Telecommunications 
Business Act of 1984, last amended in 2014 (Ministry of Internal Affairs and Communications, 
(MIC)); Radio Act of 1950, last amended in 2014, includes provisions relating to technical 
regulations, conformity assessment, and certific ation of radio equipment (MIC); Fertilizer Control 
Act of 1950, last amended in 2014 (MAFF). 
3.34.  For WTO matters, the TBT notification authority is the Ministry of Foreign Affairs and the 
TBT enquiry points are: (i) the Standards Information Service in MOFA which handles enquiries in 
the fields of drugs, cosmetics, medical devices,  foodstuffs, food additives, telecommunication 
facilities, motor vehicles, ships, aircraft and railway equipment (excluding enquiries concerning JIS which are handled by JETRO); and (ii) the Standards Information Service in JETRO which mainly handles enquiries in the fields of electric equipment, gas appliances, measurement scales, 
foodstuffs, food additives, etc. Those enquiries co ncerning JIS on medical devices, motor vehicles, 
ships, aircraft and railway equipment are handled by JETRO.
20  
                                               
18 Articles 8(5) of the Customs Tari ff Law and 6(4) of the AD Guideline; Articles 7(6) of the Customs 
Tariff Law and 5(4) of the CVD Guidel ine; and Articles 9(6) of the Cust oms Tariff Law, and 6(2) of the SG 
Guideline. 
19 Enforcement Ordinance for the Act on the Rati onal Use of Energy of 1979, and Enforcement 
Regulations for the Act on the Rational Use of Energy of 1979. 
20 WTO document G/TBT/2/Add.10, 11 June 1996. WT/TPR/S/310/Rev.1 • Japan 
 
- 33 - 
 
  Table 3.3 Main laws on standards and technical regulations 
Legislation/Agency First 
passed Last 
amended Purpose 
Industrial Standardization 
Act  METI 1949 2013 Applies to all products except medicines, agriculture 
and fertilizer chemicals,  silk yarn, foodstuffs, 
agricultural and forestry products.  The Law establishes the Japanese Industrial Standards (JIS) Committee and the JIS Mark Scheme and provides the legal basis for standards, certification, accreditation of certification bodies and laboratories. 
Consumer Product Safety 
Act 
 
METI 1973 2011 Sets out requirements for: (1) a narrow range of 
specified products which must comply with technical 
requirements; and (2) specif ied maintenance products 
(some types of domestic water heaters and electric 
appliances) which must be provided with information on 
maintenance. It also provides the legal basis for 
reporting product accident information for consumer 
products. 
The Act on Securing 
Quality, Efficacy and Safety of Pharmaceuticals, Medical Devices, Regenerative and Cellular Therapy Products, Gene Therapy Products, and Cosmetics  Ministry of Health, Labour and Welfare (MHLW) 1960 2013 Regulating the manufacture, import, and sale of 
pharmaceuticals, and medical devices, rege nerative and 
cellular therapy products, gene therapy products, and cosmetics. 
Act on Standardization and 
Proper Labelling of 
Agricultural and Forestry 
Products 
 
MAFF and Consumer Affairs 
Agency 1950 2013 Applies to foods, drinks, oils , and fats as well as other 
agricultural, forestry, livest ock and fishery products and 
products made from them ex cept liquors, drugs, and 
cosmetics. 
The Law provides the legal basis for the Japanese 
Agricultural Standards (JAS) and criteria for adopting 
standards, quality grading, labelling, registration of 
certifying bo dies, etc. 
Building Standard Law 
 Ministry of Land, Infrastructure, Transport and Tourism (MLIT) 1950 2014 Applies to construction of buildings and buildings. 
The Law provides for the esta blishment of standards for 
construction of buildings,  including fireproofing and 
procedures for inspection and certification of buildings, 
and type approval.  
Electrical Appliance and 
Material Safety Act 
 
METI 1961 2011 Applies to electrical ap pliances and materials. 
The Law regulates the manufacture and sale of 
electrical appliances and requires manufacturers and 
importers of these appliances to register with the METI 
and ensure conformity with technical requirements. 
Measurement Act 
 METI 1992 2011 Establishes the units of the SI as the measurement 
units in Japan and provides the legal basis to apply and verify them and certify devi ces for their measurement. 
Source: WTO Secretariat on the basis of information provided by the Japanese authorities. 
3.35.  Japan's main agencies responsible for st andards, technical requirements, and conformity 
assessment are listed in Box 3.1. 
3.36.  Up to October 2014, Japan had made a total of 735 notifications, 119 of which being made 
since 1 January 2011 (including corrigenda and revisions) to the TBT Committee under Article 10.6 
of the TBT Agreement. One notification was made of an agreement with another country (Singapore) on issues related to technical re gulations, standards or conformity assessment 
procedures. No WTO Member has used the TBT Committee to raise any concerns about TBT-
related issues in Japan since March 2008 when the United States and Australia raised concerns 
about labelling guidelines on Waygu beef. Japan has used the TBT Committee to raise several concerns with TBT-related measures taken by other Members.
21 
                                               
21 WTO TBT Information Management Syst em online information. Viewed at: http://tbtims.wto.org/ . WT/TPR/S/310/Rev.1 • Japan 
 
- 34 - 
 
  Box 3.1 Agencies in charge of TBT issues 
Ministry of Economy, Trade and Industry (METI) 
Japanese Industrial Standards Committee (JISC) 
Its functions include deliberations on the developmen t/revision of JIS and making recommendations and 
reports on consultation responses to the relevant mi nisters with respect to the promotion of industrial 
standardization, such as JIS, JIS Mark Certific ation Scheme, and Laboratory Accreditation System  
Japan Accreditation System for Product Certification Bodies of JIS Mark (JASC) 
National Institute of Advanced Industrial Science and Technology (AIST) 
National Metrology Institute of Japan (NMIJ) 
National Institute of Techno logy and Evaluation (NITE) 
International Accreditat ion Japan (IA Japan) 
Specified Measurement Laboratory Accreditation Program (MLAP)  
Accreditation of laboratories for micr o-existent substances (e.g. dioxins)  
Japan Calibration Service System (JCSS) 
Japan National Laboratory A ccreditation System (JNLA) 
Japan External Trade Organization (JETRO) 
Ministry of Internal Affairs and Communication (MIC) 
Telecommunication Techno logy Committee (TTC) 
Japan Cable Television Engi neering Association (JCTEA) 
Ministry of Agriculture, Fo restry and Fisheries (MAFF) 
Responsible for adopting standards for foodstuffs, agricu ltural and forestry produc ts and labelling under the 
Quality Labelling Standard System  and the accompanying JAS system  
Ministry of Foreign Affairs (MOFA) 
Notification authority for the TBT Agreement  
Ministry of Health, Labour and Welfare (MHLW) 
Pharmaceuticals and Medical Devices Agency (PMDA)   
Reviews and related services, e.g. scientific re view of applications for market authorization 
Post-marketing safety measures, e.g. on the quality,  efficacy and safety of drugs and medical devices 
Promotion of regulatory science 
Relief services for adverse health effects 
Source: WTO Secretariat on the basis of information provided by the Japanese authorities. 
3.37.  As at 31 March 2014, there were 10,525 Japanese Industrial Standards (JIS), and the 
number of JIS with corresponding international st andards was 5,823. To ensure compliance with 
the TBT Agreement, Japan has been aligning JIS to international standards if corresponding 
international standards exist. As at 31 March 2014, the proportion of those JIS which are 
harmonized with (identical (IDT) or modified (MDF) according to the definition of ISO/IEC Guide 21-1) international standards (ISO and IEC standards) was 97%.  
3.38.  Between April 2013 and March 2014, 338 JIS items were revised, 83 were withdrawn, 
and 209 were newly established (Table 3.4).  
3.39.  Between April 2013 and March 2014, 103 JAS were revised, 14 were withdrawn, and 
1 was newly established. As at 31 March 2014, there were 201 JAS in force (the same as in 2011) , 
and the number of JAS with corresponding international standards was 77 as at the end of 
March 2014. The proportion of those JAS which ar e harmonized with international standards is 
77%.  
3.40.  The authorities indicate that when intern ational standards do not meet requirements in 
Japan, domestic standards or technical regulations are needed. For example, tatami  (traditional 
floor coverings), futon (Japanese mattresses), Japanese rice cookers, Japanese electric fans, 
pocket warmers, and Japanese low tables with heat source, require domestic standards. WT/TPR/S/310/Rev.1 • Japan 
 
- 35 - 
 
  Table 3.4 JIS established, revised, and withdrawn, April 2013-March 2014 
JIS 
Divisions  Number of 
JIS newly 
established Number of 
JIS 
revised Number of 
JIS 
withdrawn JIS in force 
at the end of 
March 2014 
A Civil engineering and architecture 6 27 1 576 
B Mechanical engineering 37 67 16 1,672 
C Electronic and electrical engineering 50 51 12 1,639 
D Automotive engineering 1 6 5 368 
E Railway engineering 0 2 0 148 
F Shipbuilding 0 0 0 395 
G Ferrous materials and metallurgy 38 22 23 455 
H Nonferrous materials and metallurgy 5 21 4 411 
K Chemical engineering 14 64 2 1,752 
L Textile engineering 0 0 0 218 
M Mining 4 4 0 166 
P Pulp and paper 0 0 0 77 
Q Management system 7 6 1 86 
R Ceramics 2 7 0 373 
S Domestic wares 0 6 0 190 
T Medical equipment and safety appliances 18 28 7 536 
W Aircraft and aviation 0 0 0 97 
X Information processing 7 6 0 522 
Z Miscellaneous 20 21 12 844 
 Packing     
 Welding     
 Radioactivity, etc.     
Total  209 338 83 10,525 
Source: Information provided by the Japanese authorities. 
3.41.  The process for developing JIS is described in Chart 3.4, while the process used with respect 
to JAS is in Chart 3.5. 
3.42.  Approximately 7,873 domestic and 859 foreign factories in 21 countries and economies are 
certified to affix JIS marks (JIS Mark scheme). The JIS Mark scheme is voluntary unless relevant 
regulations require JIS for domestic sales. The authorities state that domestic and foreign factories 
are treated in the same manner with regard to certification of the JIS marks, and the JIS Mark scheme is internationally harmonized, base d on ISO/IEC 17065. As at October 2014, 
24 organizations were accredited as JIS mark certification bodies.  
3.43.  Compliance with the JAS is not necessary for imports into Japan except organic plants and 
organic processed foods of plant origin. The JAS Law allows third-party organizations to certify 
operators (e.g. manufacturers ) to affix JAS marks. The  Minister of Agriculture, Forestry and 
Fisheries as well as Registered Certifying Bodies (RCBs) and Registered Overseas Certifying Bodies (ROCBs) are responsible for monitoring and managing JAS marks.
22 Foreign producers or 
manufacturers that are certified by RCBs and ROCBs may conduct their own grading and affix the 
JAS marks to their products. At present, there are 28 ROCBs, 18 for organic products, and 10 for 
forestry products. Under the JAS Law, foreign en terprises certifying operators that produce, 
process, and/or distribute agricultural or forest ry products in conformity with the JAS may be 
accredited as ROCBs. 
                                               
22 For further details see WTO document WT/TPR/S/243/Rev.1, 2 May 2011. WT/TPR/S/310/Rev.1 • Japan 
 
- 36 - 
 
  Chart 3.4 Flowchart of JIS developing process 
Any interested Parties Relevant Ministries
Publicized at least 3 weeks 
before drafting startsJIS DraftsIndustrial Association
(Drafting Committee)
Notification in Official Gazette AnnouncementEstablished or revised 
as JIS StandardsEntrusted
Propose a draft for 
deliberation of JISC
Publicized at least 3 months 
before deliberation starts
Publicized at least 60 days 
before deadlineJISC
Boards
Technical CommitteeInquiry
ReportSubmit
 
Source: JISC online information. Viewed at: https://www.jisc.go.jp/eng /jis-act/flow-dev.html  . 
Chart 3.5 Flowchart of JAS developing bodies 
Prepare and announce "plans concerning 
establishment of JAS"
Direction of Investigation 
Direction of Original Proposals Preparation 
Inviting Public Comments 
Consultation with the Council for the Standards for 
Agricultural and Forestry Products (JAS council ) 
Notice through Official GazettesInvestigation 
(Investigation Institution)
Original Proposal Preparation
(Original Proposal Preparation bodies) 
Preparation Bodies shall:
• discuss the original proposal with  stakeholders.
• open the discussion.
• review based on scientific knowledge.ReportMinistry of Agriculture, Forestry and Fisheries Preparation Body
Report
 
Note: JAS Council consists of consumers, producers and academic experts. 
Source: Information provided by the authorities. 
3.44.  Overseas manufacturers of electrical and consumer products may undergo conformity 
assessment and certification conducted in foreign countries by foreign registered conformity 
assessment bodies, in accordance with relevant la ws (e.g. the Electrical Appliance and Material 
Safety Act and the Consumer Product Safety Act). Additionally, under the provisions of the High WT/TPR/S/310/Rev.1 • Japan 
 
- 37 - 
 
  Pressure Gas Safety Law, some cylinders and designated equipment for high pressure gas made 
by foreign manufacturers are allowed to omit some  inspections if the manufacturers are registered 
with the Government. Japan accepts test data on chemical products developed in other countries based on OECD Test Guidelines and OECD GLP pr inciples and the Decision of the OECD Council 
concerning the Mutual Acceptance of Data in the Assessment of Chemicals.
23 
3.45.  The METI has designated 23 inspection bodi es (as in 2013), of which seven are foreign. The 
designated inspection bodies include: eight bodies under the Consumer Product Safety Act, 
11 under the Electrical Appliance and Material Safety Act, 2 under the Law Concerning the 
Securing of Safety and Optimization of Transact ion of Liquefied Petroleum Gas, and two under the 
Gas Utility Industry Law. 
3.46.  Japan is a member of the ISO, ITU, the International Electrotechnical Commission, the 
International Accreditation Forum, the Bureau international des poids et mesures, the Organisation 
internationale de métrologie légale, and the International Laboratory Accreditation Cooperation as well as several regional standards and accreditation bodies. 
3.1.8  Sanitary and phytosanitary measures 
3.47.  The main changes introduced since 2013 to the legal framework on SPS measures in Japan 
include the following:  
• Regulations under the Plant Protection Act amended in 2013. Changes included: 
updating the quarantine pest list, the non-quarantine pest list, the table of pest/plant/area combinations subject to: (a) inspection at growing site in exporting 
countries, (b) import prohibition, and (c) special phytosanitary measures to be carried 
out in exporting countries.
24 
• The provisional maximum residue limits (MRLs) for pesticides in feeds, established 
in 2006 under the Enforcement Ordinance of th e Standards of Feed and Feed Additives, 
were recently revised by the MAFF.25 
3.48.  The main laws for implementing the SPS Agreement in Japan, together with the agencies 
responsible, are listed in Table 3.5. 
3.49.  The MAFF, the MHLW, and the Food Safety  Commission continue to be responsible for 
Japan's SPS measures (Box 3.2). Japan's enquiry point and national notification authority under the SPS Agreement remains the Standards Information Service within the International Trade Division of the MOFA's Economic Affairs Bureau.
26 The procedure for establishing SPS measures 
also remained unchanged during the review period. 
3.50.  Up to October 2014, Japan had made some 386 notifications, 108 since 1 January 2011 
(including corrigenda and revisions) being made to the SPS Committee. Japan has raised its 
concerns about measures maintained by several Members on import restrictions related to 
radionuclides, while several other Members have raised or supported concerns about measures 
maintained by Japan on import restrictions related to foot-and-mouth disease.27 
3.51.  According to the authorities, SPS measur es applied by Japan are based on the relevant 
international standards. Where such relevant international standards do not exist, SPS measures are based on scientific risk assessment, in accord ance with the WTO SPS Agreement. Additionally, 
the authorities state that, regarding food safety issues, the Japanese Food Safety Commission 
publishes the result of the risk assessments.  
                                               
23 Based on the Chemical Substances Control Law. 
24 MAFF; and WTO documents G/SPS/N/JPN/316, 28 June 2013; G/SPS/N/JPN/316/Corr.1, 
23 July 2013; and G/SPS/N/JPN/316/Add.1, 11 March 2014. 
25 WTO documents G/SPS/N/JPN/321, 16 August 2013; and G/SPS/N/JPN/330, 20 January 2014. 
26 WTO document G/SPS/ENQ/26, 11 March 2011. 
27 WTO SPS Information Management System. Viewed at: http://spsims.wto.org  . WT/TPR/S/310/Rev.1 • Japan 
 
- 38 - 
 
  Table 3.5 Principal la ws on SPS measures 
Legislation/Agency First 
passed Last 
amendedPurpose 
Food Sanitation Act 
 MHLW, Consumer Affairs Agency 1947 2014 Applies to food and additives, and containers and packaging. 
 The Act provides for the settin g and application of standards 
on food and food additives as  well as inspections by the 
Minister of Health, Labour and Welfare of establishments. 
Food Safety Basic Law 
 
Consumer Affairs 
Agency, Food Safety 
Commission 2003 2013 Aims to promote policies to ensure food safety by: 
establishing basic poli cy principles; clarifying responsibilities 
of national and local governme nts, and food-related business 
operators and the roles of consumers; and establishing basic 
direction for policy formulation.  
Act on Standardization 
and Proper Labelling of Agricultural and Forestry Products  MAFF, Consumer Affairs Agency 1950 2013 Applies to foods, drinks, oils, and fats as well as other 
agricultural, forestry, livest ock and fishery products and 
products made from them ex cept liquors, drugs, and 
cosmetics.  The Act provides the legal basis for the Japanese Agricultural Standard (JAS) and criteria for adopting standards, quality grading, labelling, registration  of certifying bodies, etc. 
Act Concerning Safety 
Assurance and Quality 
Improvement of Feed 
 
MAFF 1953 2007 Aims to contribute to public safety and stable production of 
livestock products by regulating  the production of feeds and 
feed additives, setting offici al specifications for feeds, 
conducting tests of feeds in  conformity with official 
specifications. 
Plant Protection Act 
 MAFF 1950 2012 Provides the legal basis for regulations on plant protection 
including quarantine for local,  import and export plants. 
Act on Domestic 
Animal Infectious 
Diseases Control 
 
MAFF 1951 2013 Aims to protect and promote the livestock industry by 
preventing the outbreak and spre ad of infectious  diseases in 
domestic animals. 
Source: WTO Secretariat on the basis of information provided by the Japanese authorities. 
Box 3.2 Key agencies responsible for SPS measures 
Ministry of Agriculture,  Forestry and Fisheries 
Food Safety and Consumer Affairs Bureau 
 Responsible for SPS measures relating to animal  feed, animals, plants, veterinary drugs, etc.  
Ministry of Health, Labour and Welfare 
Department of Food Safety, Pharmaceutical and Food Safety Bureau 
 Responsible for administration of food safety includin g specifications and standards for food, food additives, 
pesticide residues, animal drug residues, genetically modified foods and food containers, inspection and 
safety measures for food.  
Cabinet Office - Food Safety Commission 
 Conducting risk assessment on food and ma king recommendations to  relevant ministries 
 Implementing risk communication among stakeholders, e.g. consumers and business operators 
 Responding to food-borne  accidents and emergencies.  
Ministry of the Environment 
Responsible for managing risks to the environment from imports, including from invasive alien species.  
Ministry of Foreign Affairs 
Enquiry point and notification authority.  
Source: WTO Secretariat on the basis of information provided by the Japanese authorities. 
3.52.  Regarding food safety measures, in Japan more than 800 pesticides have residues 
standards and at least 800 food additives are approv ed for use. According to the authorities, it is 
very difficult to confirm whether all these substances comply with international standards. While 
Codex standards are considered in MHLW's risk management, only additives that have been r e v i e w e d  b y  t h e  F o o d  S a f e t y  C o m m i s s i o n  a n d  a p p r o v e d  b y  M H L W  m a y  b e  u s e d  i n  f o o d  a n d  
beverages sold in Japan. This approach is commonly applied not only for food additives but in the 
setting of all types of food standards. WT/TPR/S/310/Rev.1 • Japan 
 
- 39 - 
 
  3.53.  Japan currently imposes import prohibitions  on beef and poultry from various countries to 
prevent the spread of BSE and avian flu.28 The authorities maintain that the process of lifting the 
import ban includes technical consultations, consideration of import requirements, and the implementation of risk assessment that takes due account of the World Organization for Animal 
Health (OIE) code,
29 and involves consultation with relevant domestic industries, consumers, and 
requesting countries. Japan has allowed beef imports from the United States, Canada, France, the Netherlands, Ireland and Poland under certain conditions based on scientific review by FSC. 
3.54.  Under the provisions of the Food Sanitation Act, imported food may be exempted from 
inspection upon importation into Japan if a cargo is inspected by an official inspection organization in the exporting country and bears the result of the inspection. However, items such as bacteria 
and mycotoxins, whose characteristics may change during transportation, are not exempted. The 
inspection bodies must be registered with the Government of Japan, through the government of 
the exporting country.
30 As at October 2014, 3,891 such laboratories were registered. In the areas 
of animal health and plant health, Japan has not accredited any laboratory abroad. 
3.55.  Japan is a member of the Codex Alimentarius Commission and the OIE, and a contracting 
party to the International Plant Protection Conventi on (IPPC). Its contact points are: Director of 
Plant Quarantine Office, Plant Protection Division, Food Safety and Consumer Affairs Bureau, the 
MAFF (in relation to IPPC); Director of Animal Health Division, Food Safety and Consumer Affairs 
Bureau, the MAFF (in relation to OIE); and Director of Office for Resources, Policy Division, Science and Technology Policy Bureau, the Ministry of Education, Culture, Sports, Science and Technology (in relation to Codex).  
3.1.9  Labelling and packaging requirements 
3.56.  Food labelling in Japan continues to be governed by the JAS Law and the Food Sanitation 
Act. Under the provisions of the JAS law, mandatory labelling standards for food are currently in 
force. These include: cross-category quality labe lling standards for processed foods, fresh foods, 
and genetically modified foods
31, and individual quality labelling standards.32 Food that contains 
additives must also be labelled with the additives included. Imported processed food does not 
require labelling of place of origin of the ingredients, which is mandatory for domestically-produced 
processed food. All organic plants and organic processed foods to be sold in Japan must comply with the JAS organic standards and carry the JAS organic mark.
33 
3.57.  The Food Sanitation Act requires that any allergenic substances contained in processed 
foods must be indicated on the labels. At present, it is mandatory to include eggs, milk, wheat, 
buckwheat, peanuts, crab, and shrimps in the descr iption of ingredients, while it is recommended 
to include abalone, squid, salmon roe, oranges,  kiwi fruit, beef, walnuts, mackerel, salmon, 
gelatine, soybeans, chicken, pork, matsutake-mushroom, peaches, yams, apples, and bananas.  
3.58.  Under both the Food Sanitation Act and th e JAS Law, genetically modified (GM) foods must 
be labelled as such. Presently, the list of GM products that need to be labelled comprises eight 
crops (soybeans, corn, rapeseed, potatoes, cottonseed, alfalfa, papaya, and sugar beet) and 
33 kinds of designated processed food, mainly made of soybeans or corn; it also includes the 
                                               
28 At the end of October 2014, imports of beef were prohibited from Austria, Belgium, Brazil, the Czech 
Republic, Denmark, Finland, Germany, Greece, Israel, Italy, Liechtenstein, Luxe mbourg, Portugal, Romania, 
Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom. Imports of poultry were prohibited 
from 57 countries/regions. 
29 WTO document WT/TPR/M/211/Add.1, 22 May 2009. 
30 Results of examinations based on the AOAC (Association of Analytical Communities) method, which 
are either endorsed or established by the exporting country, are accepted. 
31 Cross-category quality labelling standards are provided for all proc essed foods and beverages (except 
alcohol and medical drugs). Fresh foods must be labelled with their name and place of origin. Processed foods 
must be labelled with the name, the list of ingredients, the net content, the date of minimum durability or use-
by date, instructions for storage, the name and addres s of the manufacturer, and the country of origin (only 
for imported products). 
32 Specific labelling requirements are provided as quality labelling standards for individual products 
depending on their characteristics. 
33 To label food as "organic", certification that the food meets certain JAS requirements is needed from a 
registered certifying body or a regi stered overseas certifying body. Only certified food is allowed to be 
distributed with a JAS organic mark. WT/TPR/S/310/Rev.1 • Japan 
 
- 40 - 
 
  newly added papaya and processed foods containing papaya as a main ingredient. The MHLW does 
not permit imports of GM foods that do not meet its safety requirements. 
3.59.  During the period under review, changes to the food labelling system under the Food 
Sanitation Act included a standard for infant foods labelling34, while under the JAS Law the quality 
labelling standards for chilled meatballs, and chilled hamburger steaks was changed in 2012.35 
3.1.10  Government procurement 3.60.  Japan is a party to the WTO Agreement on Government Procurement (GPA). During the 
review period, some changes were made to Japan' s legal framework basically to preclude certain 
parties from participating in open tendering: (i) a party who is prescribed in Article 32, item 1 of the Act to Prevent Unjust Acts by Organized Crime Group Members
36; (ii) parties who intentionally 
executed construction work, production or other services with poor workmanship, and/or 
intentionally overcharge by a false report for contracts where the amount to be paid was decided 
after the contract.37 
3.61.   To implement the Protocol Amending the WTO Agreement on Government Procurement 
adopted in March 2012, the relevant Cabinet orde rs were modified and entered into force on 
16 April 2014, the same day as the Protocol came into force in Japan.38 
3.62.  The Government of Japan does not have official data on government procurement spending 
as a percentage of GDP. However, according to an OECD study, in 2011 Japan spent 15.4% of its 
GDP on government procurement.39 
3.63.  The Account Law and relevant ordinances specify the procurement procedures for central 
government entities, while the Local Autonomy Law and relevant ordinances stipulate the 
procedures for local governments. Japan's GPA coverage encompasses all central government 
entities, all 47 prefectures, 19 designated cities (shitei toshi)40, and more than 100 public 
corporations.  
3.64.  Regarding its central government entities, Japan recently lowered its thresholds for goods 
and services under the GPA (excluding constructi on services and architectural, engineering and 
other technical services) from 130,000 Special Drawing Rights (SDRs) to 100,000 SDRs.41 The 
coverage of services for GPA procurement was also recently expanded. In terms of local 
government procurement procedures, the authorities stated that local government procurement procedures are basically the same as those of the central government, except for Japan's voluntary measures.
42 
                                               
34 WTO document G/SPS/N/JPN/290, 30 January 2012. 
35 WTO document G/TBT/N/JPN/335, 17 June 2010. 
36 With this purpose, Article 70 of the Budget, Settlement of Account and Accounting Regulations 
(Imperial Ordinance No. 165 of 1947) was revised on 1 April 2013. 
37 Article 71 of Imperial Ordinance No. 165 of 1947 was revised on 1 April 2013. 
38 These included the modification of the Cabinet Order Stipulating Special Procedures for Government 
Procurement of Products or Specifie d Services (Cabinet Ordinance No. 300 of 1980), and the Cabinet Order 
Stipulating Special Procedures for Government Procurement of Products or Specified Services in Local Government Entities (Cabinet Order No. 372 of 1995). 
39 OECD online information. Viewed at: http://statlinks.oecdcode.org/422013201P1G108.XLS.  
40 19 cities are covered under the revised GPA, while 12 are under the GPA 1994. 20 cities have 
populations over 500,000. 
41 WTO document GPA/W/328, 22 April 2014. 
42 Japan's voluntary measures include improved market access and the Operational Guideline on 
Procedures for Government Pr ocurement. In addition, there are volunt ary measures pertaining to individual 
sectors, such as super-computers, non-R&D satellites , computer products and services, telecommunication, 
and medical technology . Except for these voluntary measures, ce rtain local authorities (prefectures and 
designated cities) must comply with the GPA. WT/TPR/S/310/Rev.1 • Japan 
 
- 41 - 
 
  3.65.  In addition to its commitments under the GPA, Japan has chapters on government 
procurement in nine of its EPAs43; the Japan-ASEAN, Japan–Malaysia, Japan-Viet Nam, and 
Japan-Brunei EPAs do not have such a chapter.  
3.66.  With regard to the procedures of central government entities, a specific contractor may be 
selected under the single tendering contract method if, inter alia,  the nature or objectives of the 
procurement does not allow competition, or competition is not possible or disadvantageous to the Government because of the urgent nature of the contract, or the contract value is small, in 
accordance with clause 4 or 5 of Article 29.3 of the Accounts Law. The authorities state that single 
tendering corresponds to "limited tendering" in the GPA. 
3.67.  The Act for the Promotion of Use of Wood in Public Buildings, issued in 2010, stipulated 
promotion of the use of wood in the construction of public buildings; the authorities maintain that 
the law is operated without distinction between do mestic and imported goods. In June 2013, Japan 
eliminated its goal of covering 50% of domestic demand for wood with domestic supply. It currently does not have a wood self-sufficiency rate as a policy objective. 
3.68.  In accordance with the Basic Policy for Public Procurement of Information Systems adopted 
in March 2007, in the event that the amount of th e contract affecting a design or development is 
estimated to be not less than ¥500 million, it must be divided in principle. Government 
organizations are also required to formulate procurement plans. 
3.69.  The total value of procurement above the threshold level of 100,000 SDRs specified under 
Japan's voluntary measures on government procurement was approximately ¥1.83 trillion in 2012 (up by 30.0% from 2011).
44 In 2012, open tendering accounted for 68.6% of the total (67.9% in 
2011). During the same period, the share of selective tendering in terms of value decreased from 
1.5% to 1.2%, and that of single tendering from  30.5% to 30.2%. Procurement of overseas goods 
and services, supplied by either domestic or fore ign suppliers decreased from 7.9% to 6.0% in 
terms of value. Procurement of foreign goods amounted to 10.3% of the total in 2012, compared 
with 13.7% in 2011 (Table 3.6).45 Procurement from foreign suppliers increased from 3.1% in 
2011 to 3.2% in 2012 in contract terms, but decreased from 3.1% to 3.0% in value terms during 
the same period. The shares of foreign suppliers in contracts resulting from open and single 
tenders, respectively, were 1.5% and 4.4% in 2012 (1.4% and 4.8% in 2011). As at 10 May 2014, 66,895 firms (of which 267 were either wholly or partially owned by foreigners) have central-government-wide unified qualification for participating in tendering contracts for, inter alia , 
manufacturing, sales of products, and offers of service. 
3.70.  Open tendering is the norm in Japan's government procurement. However, for procurement 
contracts between the Government and a Cooperative Association or Federation of Cooperative 
Associations of small and medium enterprises (S MEs), the Government may use limited tendering 
procedures, in line with the Cabinet Order Stipulating Special Procedures for Government Procurement of Products or Specified Serv ices (Government Ordinance No. 300 of 1980). 
Procurement from SMEs is "encouraged" under the Law on Ensuring the Receipt of Orders from the 
Government and Other Public Agencies by Small and Medium Enterprises (enacted in 1966); under 
the Law, the Government, local authorities, and other public agencies must endeavour to expand procurement opportunities for SMEs, by way of, inter alia , providing information on procurement 
plans. Nonetheless, no tendering is reserved exclusively for SMEs. These laws and regulations 
apply equally to domestic and foreign SMEs. 
                                               
43 Japan's EPAs with Chile, India,  Indonesia, Mexico, Peru, Philippine s, Singapore, Switzerland, and 
Thailand have chapters on  government procurement. 
44 For details of Japan's voluntary measures on go vernment procurement, see the Prime Minister of 
Japan and his Cabinet online information. Viewed at: http://japan.kantei.go.jp/procurement/2013/ch/1-0FY2013ch1-0.pdf. Procurement for public works (including architectural, engineering and other technical 
services) is excluded from the measures. Procurement by  sub-central government entities is also excluded. 
45 Foreign suppliers are defined under the Japan's vo luntary measures on government procurement as a 
"corporation in which approximatel y more than 50% of shares are ow ned by foreign investors/capital". WT/TPR/S/310/Rev.1 • Japan 
 
- 42 - 
 
  Table 3.6 Procurement by product and by origin, 2011 and 2012 
(¥100 million and %) 
 
Products 2011 2012
Total 
value Foreign 
share Total 
value Foreign 
share 
1 Products from agriculture, and from agricu ltural and food processing 44.8 0.0 21.5 0.5
2 Mineral products 293.2 30.7 518.8 11.0
3 Products of the chemical and allied industries 30.7 7.8 41.1 0.0
4 Medicinal and pharmaceutical products 555.6 14.2 385.3 18.8
5 Artificial resins; rubber, raw hides and skins; leather; and articles thereof 16.4 0.0 16.1 4.9
6 Wood and articles of wood; pape r-making material; paper and paperboard 
and articles thereof 147.3 0.0 188.5 0.0
7 Textiles and textile articles; thread for spinning and weaving; and articles 
thereof 80.9 1.4 68.7 2.5
8 Articles of stone, of cement and similar materials; ceramic products; glass 
and glassware; and articles thereof  4.0 0.0 0.4 0.0
9 Iron and steel and articles thereof 177.8 1.3 170.5 0.1
10 Non-ferrous metals and articles thereof 53.8 13.8 41.3 5.3
11 Powe r-generating machinery and equipment 22.9 7.7 60.0 5.0
12 Machinery specialized for particular industries 171.2 1.3 84.3 2.2
13 General industrial machinery and equipment 74.5 1.7 112.8 0.8
14 Office machines and automatic data-processing equipment 1,669.1 4.7 2,382.7 3.9
15 Telecommunications and sound-recording and reproducing apparatus 
and equipment 468.1 3.0 576.2 2.9
16 Electrical machinery, apparatus and appliances, and electrical parts thereof 193.7 6.5 284.6 5.2
17 Road vehicles 299.6 0.6 421.1 1.7
18 Railway vehicles and associated equipment 90.1 56.7 57.9 0.0
19 Aircraft and associated equipment 101.4 54.6 157.6 74.2
20 Ships, boats and floating structures 36.5 0.0 136.3 0.0
21 Sanitary, plumbing, and heating equipment 7.2 0.0 3.5 0.0
22 Medical, dental, surgical and veterinary equipment 613.5 44.3 776.0 25.8
23 Furniture and parts thereof 49.4 0.0 54.5 0.0
24 Scientific and controlling instruments and apparatus 874.3 28.8 1,384.2 20.1
25 Photographic apparatus and equipment, optical goods, and clocks 17.6 9.5 22.7 3.5
26 Miscellaneous articles 1,117.9 5.3 1,059.8 5.9
  Total 7,211.4 13.7 9,026.5 10.3
Source: Information provided by the Japanese authorities. 
3.71.  Most cases of proven infringement of Japan's Antimonopoly Act (AMA) continue to involve 
bid-rigging related to public works. During 2012-13 , one case of bid-rigging involving government 
officials was made known to the public. In addition, seven cases of disturbance of biddings by procurement officials were criminally charged in 2012 under Article 8 of the "Act on Elimination 
and Prevention of Involvement in Bid-Rigging et c. and Punishments for Acts by Employees That 
Harm Fairness of Bidding etc." The Act for Promoting Proper Tendering and Contracting for Public Works defines major policy instruments for preventi ng bid-rigging and other improper actions. As 
regards Japan's bid-challenge procedures, complaints about procurement procedures by the 
central government and public corporations are processed by the Office for Government 
Procurement Challenge System (CHANS) and consid ered by the Government Procurement Review 
Board (GPRB). The Council on Government Procurement Review has decided that in principle the 
procuring entity should follow the recommendations of the GPRB. Five complaints have been filed 
since 2011.
46 Each local government covered by the GPA has its own review body and its own 
regulation on the structure and administration of its review body. The authorities state that 
members of the body are selected in line with Article XVIII:4 of the GPA. 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures and requirements 3.72.  According to the World Bank's Doing Business report, in 2014, Japan ranked 20
th out of 
189 countries and territories for ease of trading across borders at a total time of 11 days and a 
cost of US$915 for exporting a container (compared to 11 days and US$880 in 2013), of which 
                                               
46 Of these five complaints, one was dismissed and fo ur were upheld. For deta ils, see Cabinet Office 
online information (in Japanese). Viewed at: http://www5.cao.go.jp/acc ess/japan/shori-j.html  
[14 October 2014] . WT/TPR/S/310/Rev.1 • Japan 
 
- 43 - 
 
  US$145 and five days is for documents' preparation and two days and US$75 for customs' 
clearance and technical control.47 
3.73.  There have been no major changes to the procedures and requirements for exports since 
the last review of Japan and most requirements  are based on international agreements and/or 
security as well as gathering statistics. The do cuments required include the export declaration 
form (Customs form C-5010), invoices, and other papers as required by specific laws and regulations.
48 
3.74.  The principal legislation affecting exports are set out in Table 3.7. In addition, there are 
several laws applicable to specific groups of products such as the Narcotics and Psychotropics Control Act, the Cannabis Control Act, and the Stimulant Drug Control Act. 
Table 3.7 Principal legislation affecting exports 
Legislation First 
passed Last 
amendedPurpose 
Customs Act 1954 2013 Is the principal legislation covering customs procedures and 
documentation. 
Foreign Exchange and Foreign 
Trade Control Act 1949 2009 Sets out the legal basis for registration of exporters and the 
application of export controls in specified circumstances. 
Act on Conservation of Endangered Species of Wild 
Fauna and Flora 1992 2005 Provides legal basis for the Minister of the Environment to 
draft guidelines on conservation of endangered species, the 
requirement to have approval for international trade, and 
other measures for their protection. 
Act on Controls on the Illicit 
Export and Import and Other 
Matters of Cultural Property 2002 2004 Legal basis for measures in connection with the import, 
export, and recovery of stolen cultural property in order to 
ensure proper implementation of the Convention on the 
Means of Prohibiting and Preventing the Illicit Import, 
Export and Transfer of Ownership of Cultural Property. 
Export Trade Control Order  1949 2013 Sets out the products to which export controls apply. 
Foreign Exchange Order   Sets out the technologies (including software) to which 
export controls apply. 
Source: Japanese authorities. 
3.75.  Under the 2011 amendments to the Customs Act, goods manufactured by an AEO can be 
exported through another business entity without the goods being placed in a customs area. In the 
two-year period up to April 2014, the number of AEOs increased by 54 to 523 but there are no 
data on the value or type of goods exported by AEOs.  
3.2.2  Export taxes, charges, and levies 
3.76.  There are no export taxes, charges, or levies applied by the Government or other public 
authorities in Japan. 
3.2.3  Export prohibitions, restrictions, and licensing 3.77.  Under the Customs Act, export prohibitions  apply to a limited range of products: narcotics 
and certain other drugs; child pornography; articles which infringe intellectual property rights; and 
certain articles that constitute unfair competition under the Unfair Competition Prevention Act (essentially related to intellectual property rights as well). 
3.78.  In addition, the Foreign Exchange and Fore ign Trade Control Act provides the legal basis for 
applying export controls while product lists and detailed operational guidelines are found in secondary legislation, including Cabinet orders, Ministerial orders, etc. The main Orders under the 
Act are the Export Trade Control Order of 1949 (l ast amended in 2014) which sets out the goods 
and their destinations where the permission or a pproval of METI is required for export, and the 
Foreign Exchange Order of 1980 (last amended in 2013) which sets out the technologies and 
                                               
47 World Bank (2014). 
48 Japan Customs online information. Viewed at: 
http://www.customs.go.jp/english/summary/export.htm  [September 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
- 44 - 
 
  destinations where permission from METI is requ ired for transfer outside Japan. These lists of 
goods and technologies are updated regularly, as are destinations and end-user lists.49  
3.79.  Japan maintains export controls for security, conservation, and humanitarian reasons, 
including international commitments such as CITES and Chemical Weapons Convention (CWC) as 
well as Japan's participation in non-binding arrangements such as; the Wassenaar Arrangement on 
transfers of conventional arms and dual-use goods and technologies; the Missile Technology 
Control Regime; the Treaty on the Non-Proliferat ion of Nuclear Weapons; the Nuclear Suppliers 
Group; and the Australia Group. For example, METI permission is required for the export of goods 
and technologies regulated under the International Export Control Conference with the objective of preventing the proliferation of weapons of mass destruction. 
3.80.  The Trade and Economic Cooperation Bureau in METI is responsible for export control policy 
and legislation and participation in international export control discussions and negotiations. It is 
also responsible for issuing export licences and enforcement. 
3.81.  Most of the products in the lists of goods appended to the Export Trade Control Order and 
the lists of technologies appended to the Foreign Exchange Order are related to Japan's 
international commitments or its participation in non-binding arrangements and include a "catch-all" category for products or technologies that could be used in weapons of mass destruction.
50 The 
Export Trade Control Order also includes exports of several agricultural, fishing, and forestry-
related products to all regions where METI approval is required.51 In these cases, METI is obliged 
to obtain the consent of the MAFF before granting a licence.  
3.82.  To obtain an export licence, the exporter must apply to METI with an application form and 
supporting documents, including an end-use certificate from the end-user. In practice, licences are 
refused for military weapons and certain materials which can be used in developing weapons of mass destruction. In December 2011, the Govern ment announced that it would permit arms 
exports to partner countries for joint development provided the government of the country-of-
destination obtained consent from Japan before an y item exported from Japan was transferred to a 
third country. For dual-use items, licence approval depends on METI's assessment of the risk 
which is based on the destination and the end-us er although, for the "catch-all" category of 
products a licence is not required for exports to 27 countries.
52 
3.83.  For technologies, including software, a licence is required for the transfer of a listed 
technology from Japan to another country, or for transfer within Japan to a non-resident. 
3.84.  Normally, each consignment of goods for export under the Export Trade Control Order or 
technology for transfer abroad under the Foreign Exchange Order requires an individual export 
licence but there are five different kinds of bulk export licences: for regular exports of 
less-sensitive goods to some locations; for established trading relationships; for re-exports of 
certain goods for repair or replacement to some locations; and for repeated exports to an overseas subsidiary.
53 
                                               
49 METI online information. Viewed at: 
http://www.meti.go.jp/engl ish/policy/external_economy/trade_control/index.html  [December 2014]. 
50 CISTEC (2012), p. 14. 
51 Articles 2, 4, and 11 of the Ex port Trade Control Order and Append ed Table 2; rows 28 (wheat bran, 
rice bran, barley bran); 29 (feed mixtures for cattle, pi gs, sheep, goats, deer, chic kens, and quail) ; 30 (mycelia 
of lentinus edodes); 32 (logs of kalopanax pictus, an d quercus); and 33 (eels fry) to all regions; and row 
34 (frozen baby clams, hard clams and sea mussels) to the United States (under the Shellfish Sanitation 
Agreement between Japan and the United States). 
52 Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Ireland, It aly, Republic of Korea, Luxemburg, Netherlands, New Zealand, Norway, 
Poland, Portugal, Spain, Sweden, Switzerland, United Kingdom, and United States. 
53 CISTEC (2012), pp. 25-26. WT/TPR/S/310/Rev.1 • Japan 
 
- 45 - 
 
  3.2.4  Export support and promotion 
3.85.  Japan notified the Committee on Agriculture that it had not provided any export subsidies 
for FY1995-2013.54  
3.86.  The Japan Bank for International Cooperation (JBIC) and the Nippon Export and Investment 
Insurance (NEXI) are the official export credits agencies of Japan.55 According to the authorities, 
provision of these credits is based on the term s and conditions of the OECD Arrangement on 
Officially Supported Export Credits.56 
3.87.  NEXI was established in 2001 and took over  the export insurance programmes then run by 
METI. It was established as an incorporated admi nistrative agency under the Act on General Rules 
for Incorporated Administrative Agencies, and the Trade and Investment Insurance Act. In conducting its business, NEXI provides trade and investment insurance with the objective of 
breaking-even financially. It offers several insura nce products covering different aspects of trade 
risks as well as investment insurance for Japanese companies. However, export credit insurance represents over 80% of the total underwritten amount which has been relatively stable for the 
past few years at ¥8.2 to ¥8.6 trillion (Table 3.8). 
Table 3.8 NEXI insurance activity, FY2009-13 
(¥ million) 
 2009 2010 2011 2012 2013
Premium income 40,203 39,757 33,378 38,797 31,994 
of which      
 Export credit insurance      
  One year or less 3,866 5,754 5,462 5,025 5,612 
  More than one year 9,730 9,403 8,611 6,918 7,703 
 Overseas investment insurance 2,956 2,595 3,177 3,718 4,471 
 Overseas untied loan insurance  21,425 13,477 10,065 17,924 6,078 
 Reinsurance 597 1,064 1,528 3,207 3,771 
      
Claims paid 10,441 8,574 8,359 4,416 12,234 
of which       
 Export credit insurance 9,591 7,346 7,157 3,079 9,675 
  One year or less .. .. .. .. .. 
  More than one year .. .. .. .. .. 
 Overseas investment insurance 0 0 0 0 0 
 Overseas untied loan insurance  0 0 0 0 0 
 Reinsurance 137 0 0 0 436 
      
Underwritten amount 8,199,062 8,582,951 8,537,772 8,300,064 8,517,171 
of which       
 Export credit insurance      
  One year or less 2,747,597 3,498,241 3,321,146 3,451,195 3,855,361 
  More than one year 3,483,858 3,810,662 3,789,341 2,700,699 2,993,984 
 Overseas investment insurance 213,193 219,229 440,367 530,106 611,679 
 Overseas untied loan insurance  1,606,754 741,082 549,068 1,369,370 706,030 
 Reinsurance 25,885 39,998 51,834 83,311 108,365 
.. Not available. 
Source: NEXI Annual Report 2013. 
3.88.  In its current form, JBIC was established in April 2012 under the Japan Bank for 
International Cooperation Act of 2011. It had previously been part of the Japan Finance 
Corporation although its origins go back to the Export-Import Bank of Japan created in 1950.  
3.89.  Most of JBIC's lending activities are fo r overseas investment loans – which represented 
about three-quarters of the total operations of ¥2,206.1 billion in FY2013. These investments 
include projects that will deliver raw materials to Japan, projects involving Japanese companies, as 
                                               
54 WTO document G/AG/N/JPN/174, 24 February 2012; 185, 25 April 2013; 176, 1 May 2012; 156,  
28 May 2010; etc. 
55 OECD online information. Viewed at: http://www.oecd.org/ tad/xcred/eca.htm  [September 2014]. 
56 WTO document WT/TPR/S/276/Rev.1, Chapter 3, para. 94, 18 June 2013. WT/TPR/S/310/Rev.1 • Japan 
 
- 46 - 
 
  well as projects abroad using exports from Japan.  JBIC also continues to provide direct loans for 
exports (Table 3.9).57 
Table 3.9 JBIC lending and investments, FY2009-13 
(¥ billion) 
 2009 2010 2011 2012 2013
Export loans 97.8 151.2 207.9 126.6 126.2 
Import loans 8.2 69.5 172.6 304.3 56.2 
Investments 2,193.7 710.3 962.0 3,138.5 1,671.0 
Untied loans 344.3 75.8 23.2 293.7 46.0 
Equity participation 13.0 19.8 1.5 74.3 97.4 
Guarantees 707.9 638.1 228.5 303.2 209.1 
Total 3,365.1 1,765.9 1,595.9 4,240.91 2,206.1 
Source: JBIC Report on FY2013 JBIC Operations ( http://www.jbic.go.jp/en/information/press/press-
2014/0515-21176  [September 2014]). 
3.90.  JBIC's funding comes from different source s, but are mostly from government accounts or 
with government guarantees including Government-Guaranteed Foreign Bonds, borrowing from the Fiscal Investment and Loan Program (FILP) and the Foreign Exchange Fund Special Account (FEFSA) (Table 3.10).
58 
Table 3.10 JBIC funding sources, FY2009-12 
(¥ billion) 
 2009 2010 2011 2012
Capital contribution from FILP industrial investment 20.0 35.5 200.0 69.0 
Borrowing from FILP fiscal loan 906.6 690.9 201.0 400.0 
Borrowing from FEFSA 987.4 323.5 230.4 1,744.9 
Government-guaranteed foreign bonds 626.3 463.3 423.2 205.3 
FILP agency bonds 70.0 50.0 50.0 0.0 
Other (including  repayments) 16.7 (244.4) (6.9) 180.6 
Source: JBIC Report on FY2013 JBIC Operations ( http://www.jbic.go.jp/en/information/press/press-
2014/0515-21176  [September 2014]). 
3.91.  JETRO is the official agency responsible for promoting exports through information, 
research, support for, and participation in, international trade fairs, and other activities to promote 
exports from, and investment in, Japan. JETRO was originally established in 1958 but now 
operates as an incorporated administrative agen cy under the Japan External Trade Organization 
Incorporated Administrative Agency Act of 2002. JETRO currently has 74 offices around the world.  
3.3  Measures Affecting Production and Trade 
3.3.1  Taxes  3.92.  Total tax revenue in Japan in FY2013 was ¥46,953 billion with the biggest contributions 
from income tax (33% of the total), consum ption tax (23%), and corporation tax (22%) 
suggesting that the tax base is quite narrow although the total for income tax includes capital gains tax (Table 3.11). 
3.93.  For FY2013 and 2014, the Ministry of Fina nce has made or proposed a number of changes 
to the taxes: 
• Introducing a new 45% (plus an additional 10% for local taxes) marginal rate for 
individual income tax for incomes over ¥40 million;  
• Introducing a tax exemption for small investments (new investment of up to ¥1 million 
per year) in special accounts for 10 years; 
                                               
57 JBIC (2013) .  
58 MOF online information. Viewed at: 
http://www.mof.go.jp/english/filp/filp_report/zaito2013/index.html  [November 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
- 47 - 
 
  • Extending and improving tax incentives for housing; 
• Increasing inheritance tax by reducing deductions and raising the highest marginal rate 
to 55% while encouraging earlier transfers and business succession; 
• Encouraging investments by corporations through relaxed capital allowances and tax 
credits for production facilities, energy-relat ed facilities, and research and development 
spending; and 
• Abolishing the special corporate tax of 10% one year ahead of schedule. The special 
corporate tax was introduced at the start of FY2012 for reconstruction after the Great 
East Japan Earthquake and was abolished end-FY2013.59 
Table 3.11 Tax revenue, FY2009-13 
(¥ billion) 
 
2009 2010 2011 2012 2013
Revised 
estimate 
Income tax 12,913,887 12,984,351 13,476,192 13,992,487 15,530,813
Corporation tax 6,356,407 8,967,688 9,351,426 9,758,311 10,493,718
Inheritance tax 1,349,778 1,250,439 1,474,381 1,503,946 1,574,336
Consumption tax 9,807,541 10,033,311 10,194,597 10,350,429 10,829,301
Liquor tax 1,416,756 1,389,290 1,369,318 1,349,638 1,347,000
Tobacco tax 822,383 907,671 1,031,547 1,017,942 1,037,548
Gasoline tax 2,715,189 2,750,101 2,648,399 2,621,915 2,574,263
Liquefied petroleum gas tax 12,324 11,888 11,301 10,713 10,265
Aviation fuel tax 79,266 74,931 46,247 49,360 52,188
Petroleum and coal tax 486,791 501,932 519,103 566,946 599,473
Promotion of power resources development tax 329,277 349,166 331,379 328,049 328,292
Motor vehicle tonnage tax 635,112 446,541 447,754 396,894 381,356
Customs duty 731,880 785,881 874,227 897,230 1,034,379
Tonnage tax 8,851 9,512 9,681 9,829 9,972
Other 63 70 177 42 122
Stamp revenue 1,067,572 1,024,021 1,046,873 1,077,676 1,126,069
Total for general account 38,733,076 41,486,794 42,832,602 43,931,407 46,952,947
Source: FY2011 and FY2012 Survey of the Settled Am ount of Tax and Stamp Revenues. Viewed at: 
http://www.mof.go.jp/tax_pol icy/reference/ account/h21.pdf  , 
http://www.mof.go.jp/tax_pol icy/reference/ account/h22.pdf  , 
http://www.mof.go.jp/english/tax_policy/account/h2011e.pdf  , 
http://www.mof.go.jp/english/tax_policy/account/h2012e.pdf  , and 
http://www.mof.go.jp/english/tax_policy/account/h2013e.pdf . 
3.3.1.1  Income tax 
3.94.  There are six brackets for income tax with a top rate (including inhabitants tax) of 40% on 
taxable income over ¥18 million. A new bracket of 45% for taxable income of more than ¥40 million is to be introduced for 2015. However, about 80% of taxpayers are in lower tax bands 
and pay a marginal rate of 10% or less.
60 
3.95.  Income tax covers ten different categories  of income: interest; dividends; real estate; 
business; employment; retirement; timber; capital gains; occasional; and miscellaneous. However, income from capital gains, interest, and dividends are taxed at 20% while retirement 
income and income from timber are also treated differently. Income from all ten categories is 
included under income tax. 
                                               
59 MOF (2013b); and MOF (2013a). 
60 MOF (2013c) , p. 13. WT/TPR/S/310/Rev.1 • Japan 
 
- 48 - 
 
  3.3.1.2  Corporation tax 
3.96.  Corporation tax is charged on worldwide income for domestic corporations (defined as those 
whose head office is located in Japan – which, under the Commercial Code, means all companies incorporated in Japan). Foreign companies are subject to corporation tax or withholding tax on 
income from within Japan.  
3.97.  The corporation tax rate on corporate incomes was reduced from 30% to 25.5% in FY2012, 
although it has been reported that when other taxes (see local taxes below) are added the total 
effective tax rate on corporations is about 34.62% . However, only about 30% of corporations have 
taxable profits.
61 
3.98.  An enterprise that undertakes to maintain specified bookkeeping records and documentation 
and gains approval from the Director of the District Tax Office can file a blue return that entitles it 
to several concessions including: 
• The right to carry forward tax losses for nine years (increased from seven years 
in April 2012) or carried back to the previous year; 
• The authorities may correct the corporation's estimate of income only when errors are 
found when the accounts are examined. In making corrections to a tax return, the authorities must provide detailed reasons in writing; and 
• Special taxation measures such as special depreciation and tax credits as set out in the 
Special Taxation Measures Law.  
3.3.1.3  Corporation tax-based incentives 3.99.  Tax incentives are used in Japan to encourage investment in specific areas and in specific 
activities (research and development). In general th e tax credit of 8-10% of spending on specified 
R&D can be counted against corporation tax up to a limit of 20% of corporation tax payable (30% for FY2013-2014) with higher credits available if R&D spending has increased compared to the 
previous three years. There are also tax incentives to encourage global enterprises to establish 
R&D subsidiaries or regional headquarters in Ja pan by reducing taxable income from approved 
activities by 20%. 
3.100.  In addition, for FY2011-2015 incentives are available for creating employment, for 
FY2013-2017 for increasing wages and, for FY2013-2016, for purchases of machinery and equipment under certain circumstances.  
3.101.  In addition, where qualified companies im plement the relevant projects in designated 
Comprehensive Special Zones for International Competitiveness
62, they may qualify for 
preferential treatment of either:  
• specially recognized capital allowances (50% of acquisition price of equipment (25% for 
buildings)) or tax credits (15% of acquisition price of equipment (8% for buildings)) 
calculated based on the price of assets/buildings acquired between 1 August 2011 and 31 March 2016; or  
• a 20% deduction for five years in taxable income from certain business activities 
conducted based on plans approved by the Prime Minister between 1 August 2011 and 
31 March 2016; while 
• other incentives exist for Comprehensive Special Zones for Local Revitalization.
63  
                                               
61 MOF (2013c) , p. 15. 
62 Hokkaido, Ibaraki, Tokyo, Kanagawa, Aichi/Gifu /Mie/Nagano/Shizuoka, Kyoto/Osaka/Hyogo, and 
Fukuoka. 
63 Cabinet Secretariat online  information. Viewed at: http://www.kantei.go.jp/jp/singi/tiiki/sogotoc/  
[September 204]. WT/TPR/S/310/Rev.1 • Japan 
 
- 49 - 
 
  3.102.  Following the 2011 Great East Japan Earthquake, a variety of measures were introduced in 
severely damaged areas to encourage reconstruction which included tax credits of 10% of salaries plus employee expenses, special capital allowanc es or tax credits on acquired assets, and a 
five-year exemption from corporation tax for new enterprises.
64 
3.103.  The Act on Special Measures Concerning Taxation of 1957 (last amended in 2014) also 
includes a variety of tax incentives which include accelerated capital allowances, tax credits, and reduction in taxable income for enterprises in international strategic comprehensive special zones, 
reduced taxation for income from research and development for approved enterprises and other 
measures to reduce tax for enterprises in specified areas.  
3.3.1.4  Consumption tax 3.104.  Consumption tax is charged on the value added principal for asset transfers (defined as 
sale or lease of assets or services), that is, tax paid on purchases is deduct ed from tax received for 
sales and the balance paid to the State. In April 2014, the tax was increased from 5% to 8% and the Government intends to increase it again to 10% in April 2017. The tax is charged at the point 
of transferring goods and providing services or, for imports, when cargo is retrieved from a bonded 
area. For domestic transactions, an enterprise is required to make an annual transfer to the State of the balance between consumption tax paid on inputs and charged on sales. There are relatively 
few non-taxable transactions – mainly medical, nursing, and educational services as well as 
financial transactions – and there are provisions for exemptions for small enterprises (taxable sales of ¥10 million or less). In addition, there ar e several types of transactions that are exempt 
from consumption tax including exports, international aviation, and international transport 
services.
65 
3.3.1.5  Local taxes 3.105.  Local taxes payable by enterprises include: 
• Inhabitant taxes, which are prefectural and municipal taxes comprised of a per capita 
rate and a corporate tax rate, where; 
o The per capita rate is computed and levied without regard for income of the 
enterprise; and 
o The corporate tax rate is assessed based on the corporation tax paid by the 
enterprise in the current fiscal year (from 1 October 2014) at 3.2-4.2% for a prefecture, and 9.7-12.1% for a municipality; 
• Enterprise tax which may be charged by prefectures based on taxable income, paid in 
capital and value added up to the rates set out in Table 3.12; 
• Business office tax for companies with premises larger than 1,000 m
2 and/or more than 
100 employees in certain cities at ¥600 per m2 and 0.25% of total employee 
remuneration; and 
• Fixed assets tax of 1.4% of the value of fixed assets.  
                                               
64 Reconstruction Agency onli ne information. Viewed at: 
https://www.reconstruction.go.jp /english/topics/2013/03/special-zo nes-for-reconstruction.html  
[September 2014]. 
65 For non-taxable transactions, consumption tax paid on inputs is not deductible, whereas for exempt 
transactions, consumption tax paid on inputs is de ductible from the regular settlement for the tax. WT/TPR/S/310/Rev.1 • Japan 
 
- 50 - 
 
  Table 3.12 Maximum rates of enterprise taxes 
 Tax base Rate (%) Rate (%) 
From 1 Oct. 2014 
Capital less than ¥100 million Net income 5.30  6.70 
Capital greater than ¥100 million Net income 2.90  4.30 
 Value added 0.48 0.48 
 Paid in capital 0.20 0.20 
Electricity, gas supply, and insurance companies Gross receipts 1.27 1.29 
Source: Authorities. 
3.3.1.6  Excise duties 
3.106.  Total revenue from all excise duties (Table 3.13) contributed approximately 12% to total 
tax revenue in FY2013 where gasoline and liquor taxes contributed more than other excise duties 
combined (Table 3.11). In general, excise duties are charged at point of shipment from the place 
of manufacture or from the bonded area, although there are provisions for payment at the end of the month following shipment/withdrawal or even later if the tax-payer provides a security. 
Exports are exempt from excise duties. 
Table 3.13 Excise duties 
Duty ¥ 
Liquor tax (¥/kl)  
 Sparkling alcohol drinks 220,000  
  Low malt beer (25-50% malt) 178,125  
  Low malt beer (less than 25% malt) 134,250  
  Othe r 80,000  
 Fermented liquo r 140,000  
  Refined sake 120,000  
  Wine 80,000  
 Shochu, etc. 200,000 plus 10,000 per 1% alcohol over 20%
  Whisky, brandy, spirits 370,000 plus 10,000 per 1% alcohol over 37%
 Blended liquo r 220,000 plus 11,000 per 1% alcohol over 20%
  Sake compound 100,000  
  Mirin 20,000  
  Sweet wine or liqueu r 120,000 plus 10,000 per 1% alcohol over 12%
  Powdered liquo r 390,000  
Tobacco taxes  
 General rate  
  Tobacco tax 5,302 per 1,000 cigarettes 
  Special tobacco tax 820 per 1,000 cigarettes 
 Reduced rate (for 3rd grade tobacco)a  
  Tobacco tax 2,517 per 1,000 cigarettes 
  Special tobacco tax 389 per 1,000 cigarettes 
Gasoline tax 48,600 per kl 
Liquefied petroleum gas tax 17.5 per kg 
Aviation fuel tax 18,000 per kl 
Petroleum and coal tax  
 Crude petroleum  2,540 per kl 
 Natural gas 1,600 per tonne 
 Coal 1,140 per tonne 
Local gasoline tax 5,200 per kl 
Motor vehicle tonnage taxb  
 3 year inspection certificate  
  Passenger vehicles Private 12,300 per 0.5 tonne or part thereof
  Light motor vehicles Private 9,900 
  Motorcycles Private 5,700 
 Business 4,500 
 2 year inspection certificate  
  Passenger vehicles Private 8,200 per 0.5 tonne or part thereof
  Trucks over 2.5 tonnes Private 8,200 per tonne or part thereof
 Business 5,200 per tonne or part thereof
  Trucks under 2.5 tonnes Private 6,660 per tonne or part thereof
 Business 5,200 per tonne or part thereof
  Light motor vehicles Private 6,600 
 Business 5,200 
1 year inspection certificate
 Passenger vehicles Private 4,100 per 0.5 tonne or part thereof
  Business 2,600 per tonne or part thereof
 Trucks over 2.5 tonnes and buses Private 4,100 per tonne or part thereof
 Business 2,600 per tonne o r part thereof
 Trucks under 2.5 tonnes Private 3,300 per tonne or part thereof
 Business 2,600 per tonne or part thereof
 Light motor vehicles Private 3,300 WT/TPR/S/310/Rev.1 • Japan 
 
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  Duty ¥ 
 Business 2,600 
    Motorcycles Private 1,900 
 Business 1,500 
  Vehicles not needing inspection certificate  
    Two wheeled Private 4,900 
 Business 4,100 
    Othe r Private 9,900 
 Business 7,800 
  Promotion of power-resources development tax 375 per 1,000 kW/h 
a The reduced rate of tobacco tax applie s to a limited number of brands of 3rd grade cigarettes (MOF 
online information. Viewed at: http://www.mof.go.jp/tax_policy/summary/consumption/127.htm  
[November 2014]), all of which are owned by Japan Tobacco. 
b Motor vehicle tonnage tax is payable at each inspection. 
 Personal cars and motorcycles: the first inspection at 3 years an d at 2 year intervals thereafter. 
 Personal light trucks: inspection every 2 years.  Personal trucks: the first inspection at 2 years with an inspection each year thereafter.  Business cars: an in spection every year. 
 Special vehicles: an inspection every 2 years. 
Source: Ministry of Finance, Tax Bureau (2014). 
3.3.1.7  Tax treaties 
3.107.  Japan has, or is a party to, 62 tax conventions applicable with 85 jurisdictions, including 
other signatories to the Convention on Mutual Administrative Assistance in Tax Matters (Table 2.4). 
3.3.2  Subsidies and support 
3.108.  Support given to agriculture (section 4.1.2.3), fisheries (section 4.2.3.4), maritime 
services (section 4.6.1) is detailed in other sections of this report. Support for exports and 
provided through taxation measures is detailed above. 
3.109.  The last notification to the Committee on Subsidies and Countervailing Measures under 
Article XVI:1 of GATT 1994 and Article 25 of th e Agreement on Subsidies and Countervailing 
Measures includes a list of 55 different schemes wi th another two (for fisheries) in a supplemental 
notification.
66 The schemes covered by the notification are primarily for small crafts, minerals and 
fuels, and agriculture and fisheries for the period FY2009-11. For non-agricultural and non-fisheries subsidies, subsidies for loans for purchasing petroleum and LPG for stockpiling by 
private companies accounted for ¥556 billion out of  a total of ¥708 billion while minerals-related 
subsidies accounted for most of the remainder. 
3.110.  The FY2014 Subsidy Program for Projects Promoting FDI, Site Location and Regional 
Development in Japan provides for subsidies for survey design for buildings, facility costs, 
equipment costs, and facility lease fees. The subsidies rates are up to one-half for SMEs and one-third for other enterprises up to a limit of ¥500 million.
67  
3.111.  Several other programmes also exist to support small and medium enterprises. These 
programmes were expanded in FY2013 to include, inter alia,  projects to support manufacturing 
(FY2013 budget of ¥11.9 billion), and support for business creation (¥4.8 billion). However, most support in FY2013 was focused on reconstruction after the Great East Japan Earthquake. In 
addition to direct support, SMEs also qualify for loans from public financial institutions and loan 
guarantees: at end FY2012, out of a total value of outstanding loans of ¥236 trillion, 9.5% was 
from public financial institutions and another 13.6% was guaranteed.
68 
3.112.  In March 2014, it was reported that METI would start providing subsidies for energy 
storage systems (lithium-ion batteries). The subs idies would be available for households (up to 
¥1 million) and commercial enterprises (up to ¥100 million) with a total budget of ¥10 billion.69 
Another report also stated that the Government intended to introduce a subsidy for vehicles 
                                               
66 WTO document G/SCM/N/253/JPN, 8 July 2013, Suppl. 1 of 17 March 2014. 
67 JETRO (2014). 
68 METI (2013b), pp. 10 and 12. 
69 Colthorpe A. (2014). WT/TPR/S/310/Rev.1 • Japan 
 
- 52 - 
 
  powered by fuel cells at ¥2 million per vehicle with further support in some prefectures for local 
purchases. 
3.3.3  State-owned enterprises70 
3.113.  As in other countries, in Japan there are some enterprises which the State or a public 
authority wholly or partly owns or controls which provide services or goods to businesses or the 
public. In some cases, these goods or services could be provided by the private sector, but for a variety of reasons, including market failure, the private sector may not offer adequate coverage or 
may not be involved at all.  
3.114.  At the State level, many of these agencies are incorporated administrative agencies. These 
are agencies established: "for the purpose of efficiently and effectively conducting affairs and businesses that need to be securely implemented fr om a public viewpoint, such as the stability of 
the lives of citizens, society and the economy, and that are, among those that do not need to be 
directly implemented by the State itself, those th at may not necessarily be implemented properly 
if entrusted to private entities or those that need to be conducted monopolistically by a single 
entity."
71 The system of incorporated administrative agencies was introduced in 2001 as part of 
the Central Government Reform of Japan to separate the functions of policy and legislation on one side and implementation on the other. Most incorporated administrative agencies were established 
under the Act on General Rules for Incorporated Administrative Agencies of 1999 plus a law 
specific to the agency in question (e.g. NEXI) was established under the Act on General Rules for Incorporated Administrative Agencies of 1999 and the Trade Insurance and Investment Act of 1950). In some cases entities equivalent to incorporated administrative agencies have been 
established under specific laws (e.g. the National University Corporation established under the 
National University Corporation Act of 2003).  
3.115.  As at November 2014, there were 98 incorporated administrative agencies in Japan. Many 
are engaged in research, and some carry out official functions usually reserved for the State, such 
as national archives and national statistics. Ho wever, some of them appear to be engaged in 
delivery of goods and services which the authorities believe would not be adequately provided by 
the private sector. These include some of the func tions of NEXI (section 3.2.4), the Agriculture 
Livestock Industries Corporation (ALIC) (section 4.1.2.3, which has been notified to the WTO as a state trading enterprise), and the Japan Housing Finance Agency (JHF). A full list of incorporated administrative agencies is in Table A3.2. 
3.116.  In addition, there are other state-owned agencies which are not classed as incorporated 
administrative agencies, such as Japan Post Holdings Co. Ltd, and some offices in certain ministries are involved in commercial activities, such as the MAFF which imports rice, wheat, and 
barley. 
3.117.  Japan has notified four entities as state trading enterprises under Article XVII of GATT 
1994 and the Understanding on the Interpretation of Article XVII (Table 3.14).
72 
Table 3.14 State trading enterprises no tified to the WTO under Article XVII 
Agency Role Trade-related activities 
Japan Tobacco Inc. JT is main ly engaged in the manufacture 
and sale of tobacco products, prescription drugs, beverages and processed foods. It has a monopoly on tobacco production in Japan. JT purchases all the leaf tobacco produced by 
domestic tobacco cultivators who enter into contracted purchase agreement with JT. 
Ministry of Health, 
Labour and Welfare 
(MHLW) Supply of opium for medical and 
scientific purposes, as well as to conduct 
necessary control over the cultivation of 
opium poppy, and the transfer, receipt 
and possession and other relevant 
activities concerning opium and poppy 
straw. MHLW carries out all imports and purchases 
all domestic production of opium and poppy 
straw. There are no exports. 
                                               
70 State-owned enterprises are not necessarily state-trading enterprises in the sense of Article XVII of 
GATT 1994 or the Understanding on the Interpretation of Article XVII.  
71 Article 2, Section 1, Act on General Rules for Incorporated Administrative Agencies of 1999. 
72 WTO document G/STR/N/15/JPN, 11 July 2014. WT/TPR/S/310/Rev.1 • Japan 
 
- 53 - 
 
  Agency Role Trade-related activities 
Ministry of 
Agriculture, Forestry and Fisheries (MAFF) MAFF can import rice, wheat and barley, 
and can export rice when particular necessity exists, based on the Law for Stabilization of Supply-Demand and Price of Staple Food.  Almost all imports of rice, wheat, and barley 
are carried out by MAFF. In FY2011-13, MAFF purchased limited quantiti es of domestic rice 
production as a publ ic stock against a 
possible supply shortage and did not purchase domestic production of wheat and barley. 
Agriculture and 
Livestock 
Industries 
Corporation (ALIC) ALIC, as a state trading enterprise, 
imports designated dairy products to 
ensure proper and smooth operation of 
the system to stabilize supply/demand 
and price of the designated milk 
products.  ALIC's role as an impo rter of dairy products 
declined in the period  2011-13, although it 
still imported over 25% of whey and butter in 
2013 and recommenced imports of SMP. It 
exported nothing nor bought any domestic 
production. 
Source: WTO document G/STR/N/15/JPN, 11 July 2014. 
3.118.  A 2014 report by the OECD defined a state owned enterprise as an autonomous public 
entity involved in commercial activities and controlled, directly or indirectly, by central government. Based on this definition, the Japanese authorities identified: 
• two minority-owned listed entities (Japan Tobacco and Nippon Telegraph and Telephone 
Corporation) with a combined market value of ¥10,884 billion,  
• eight majority-owned non-listed enterp rises with a combined market value 
of ¥14,794 billion, and  
• 16 statutory corporations or quasi-corporations with a combined value 
of ¥12,286 billion.  
3.119.  Most of these entities are primarily engaged in transportation although the largest, in value 
terms, was a majority-owned non-listed enterprise in the "other activities" category which was valued at ¥12,448 billion (presumably this is Japan Post Holdings) (Table 3.15).
73 
Table 3.15 Aggregate data on St ate-owned enterprises in Japan 
 Minority-owned listed 
entities Majority-owned non-
listed entities Statutory corporations and 
quasi-corporations 
 No. Market value (¥ billion) No. Value (¥ billion) No. Value (¥ billion) 
Total 2 10,884 8 14,794 16 12,286 
Primary sectors     1 27 
Finance     6 10,293 
Telecoms 1 5,432     
Transport   5 2,298 9 1,966 
Other utilities   1 12,448   
Other activities 1 5,452 2 49   
Source: OECD (2014), The Size and Sectoral Distribution of  SOEs in OECD and Partner Countries,  OECD 
Publishing, p. 40. Viewed at: http://dx.doi.org/10.1787/9789264215610-en  [September 2014]. 
3.120.  In the context of this trade policy revi ew, the authorities indicated that there are six 
enterprises in Japan that meet the criteria in Table 3.16 for large (i.e. operating revenue greater than ¥100 billion) commercial entities wholly- or partially-owned or controlled by the State or 
other public authorities. Some of these entities may have been included in the aggregate data on 
State-owned enterprises in Table 3.15. 
                                               
73 OECD (2014b), p. 10. WT/TPR/S/310/Rev.1 • Japan 
 
- 54 - 
 
  Table 3.16 Large state enterprises, FY2013 
(¥ billion) 
Name/operation 
Total asset value 
Total operating 
revenue 
Total operating profit  
before/after tax 
Government 
contribution to 
revenue and/or equity 
State/public authority 
holding 
New Kansai International Airport Company Ltd   
Established in 2012 for the operation of Kansai International Airport 
and Itami Airport 1,985 127 32/24 4  100% shares
Narita International Airport Corporation Ltd   
Established in 2004 for the operation of Narita International Airport 859 199 33/20 0 100% shares
Nippon Telegraph and Telephone Corporation   
Owns all the shares issued by NTT East, NTT West. Required to 
ensure proper and stable provision of telecommunications services by 
these companies throughout Japan, including remote rural areas, as 
well to conduct research relating to telecommunications technologies. 7,302 431 277/279 0 35.65% 
shares
(36.56% 
voting) 
Japan Post Holdings Co. Ltd   
Owns all the shares issued by Japan Post Co. Ltd 9,711 265 122/145 0 100% shares
Japan Finance Corporation   
Finance 24,653 788 -36 
(excluded 
from tax) 402 100% shares
Japan Tobacco Inc.   
JT is mainly engaged in the manufacture and sale of tobacco 
products, prescription drugs, beverages and processed foods 4,611 2,400 648 0 33.35% 
shares 
Note: 
Enterprises which have commercial operations operate in areas in competition with other privately-owned enterprises, or in areas which could be in competition with privately owned enterprises; and the State or other public authority may exert some degree of control over these enterprises: 
- through the terms of the law establishing the enterprise; - by owning all or part of the voting shares; or - by having the right to assign all or part of the voti ng shares to particular groups or individuals; or  
- have a special right or privilege granted by the State, such as exemptions from competition policy, 
credit or debit guarantees, or direct or indirect subsidies from the State; and 
- have an operating revenue greater than ¥100 billion. 
Source: Japanese authorities. 
3.121.  In addition, there are several other agencies which are involved in commercial activities 
which are not included in the above list and have operating revenues of over ¥100 billion. These 
include: 
• Tokyo Metro Co. Ltd, which is owned 53.4% by the Government and 46.6% by the 
Tokyo Metropolitan Government, and, in FY2014, had an operating revenue 
of ¥394 billion and an operating profit of ¥100 billion74; 
• Japan Petroleum Exploration Co. Ltd (JAPEX) in which METI has 34% of voting rights, 
had, in FY2014, net sales of ¥277 billion and a net income of ¥29 billion75;  
• INPEX, in which METI has 18.94% of shares, had, in FY2014, net sales of ¥1,335 billion 
and an operating income of ¥734 billion.76 INPEX also has 4.99% of voting rights shares 
in JAPEX; and 
• Japan Railway Construction, Transport and Technology Agency (JRTT) which is wholly-
owned by MLIT. In addition to research and promotion of technology relating to transport, JRTT owns JR Hokkaido, JR Shikok u, JR Kyushu, and JR Freight, provides 
subsidies to some railway and shipping companies, constructs and leases railway lines, 
                                               
74 Tokyo Metro online information. Viewed at: 
http://www.tokyometro.jp/corporate/ir/accounting/index.html  (Japanese) [September 2014]. 
75 JAPEX (2014) , p. 29. 
76 INPEX (2014),  pp. 96 and 135. WT/TPR/S/310/Rev.1 • Japan 
 
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  and wholly and partly owns shipping vessels. In FY2013 JRTT had gross income 
of ¥902 billion and net income of ¥19 billion (section 4.6.3).77 
3.3.4  Competition policy 3.3.4.1  Recent developments 
3.122.  The AMA was amended in December 2013, inter alia , to abolish the hearing procedure of 
the Japan Fair Trade Commission (JFTC) for administrative appeals.
78 Once the Act comes into 
force, any appeal regarding decisions of the JFTC wi ll be subject to the exclusive jurisdiction of the 
Tokyo District Court, with a panel of three or five judges hearing cases with a view to ensuring 
expertise and enhancing procedural fairness. The changes made to the AMA also seek to further improve hearing procedures within the JFTC prior to  issuing final orders, such as cease and desist 
orders.  
3.123.  The independence of the JFTC is main tained under the amended AMA. The JFTC is 
administratively attached to the Cabinet Office but its chairman and commissioners perform their functions independently and cannot be dismissed agai nst their will during their terms of office. The 
budget of the JFTC increased from ¥8.8 billion  in FY2013 to ¥11.3 billion in FY2014; it had 
830 officials in FY2014 (823 officials in FY2013). 
3.3.4.2  Exemptions from prohibition of cartels 
3.124.  Table 3.17 summarizes the exemptions for the prohibition of certain activities contained 
under the AMA and individual laws; 22 practices under 16 laws are now exempt under these provisions. 
Table 3.17 Exemptions under the Anti -Monopoly Act and individual laws 
Relevant ministries and 
agencies Legislation System 
1. Exemptions under the AMA (1 law, 3 systems)   
Japan Fair Trade Commission Section 21 Acts under intellectual property rights 
 Section 22 Acts of cooperatives 
 Section 23 Resale price maintenance contracts 
concerning published works 
2. Exemptions under various individual laws (15 laws, 19 systems)  
Financial Services Agency Insurance Business Act Insurance cartels 
 Act on Non-Life Insurance Rating 
Organization of Japan Exemptions concerning compulsory 
automobile insurance and earthquake insurance 
Ministry of Justice Corporate Reorganization Act Reorganization company's acquisition 
of its shares 
Ministry of Finance Act on Se curing of Liquor Tax and on 
Liquor Business Associations Rationalization cartels 
Ministry of Education, Culture, 
Sports, Science and Technology Copyright Act Cartels on fees for secondary use of 
commercial phonograms 
Ministry of Health, Labour, 
Welfare Act on Coordination and Improvement of 
Environmental Health Industry Cartels to prevent excessive 
competition 
Ministry of Agriculture, Forestry 
and Fisheries Agricultural Cooperatives Act Federations of agricultural 
cooperatives; Agricultural Association 
Corporation 
Ministry of Economy, Trade and Industry Export and Import Transaction Act Cartels on export 
 Act on the Organization of Small and 
Medium-Sized Enterprise Association Joint economic undertakings 
 Small and Medium-Sized Enterprise 
Cooperatives Act Federations of small business 
associations 
Ministry of Land, Infrastructure, 
Transport and Tourism Marine Transportation Act Maritime transportation cartels 
(international); maritime 
transportation cartels (coastal service) 
 Road Transportation Act Transportation cartels 
 Civil Aeronautics Act Aviation cartels (international); 
                                               
77 JRTT (2014). 
78 On 7 December 2013, the AMA Amendment Bill was approved in the 185th extraordinary session of 
the Diet, and the Enacted Act was promulgated on 13 De cember 2013. The Enacted Act is expected to come 
into force in 2015. WT/TPR/S/310/Rev.1 • Japan 
 
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  Relevant ministries and 
agencies Legislation System 
aviation cartels (domestic) 
 Coastal Shipping Associations Act Maritime transportation cartels 
(coastal service); joint shipping 
businesses 
 Special Measures Act on the Proper 
Management and Revitalization of the 
Taxi Business in Specified and Semi-
Specified Regions Cartels on reduction in the number of 
vehicles 
Source: Information provided by the Japanese authorities. 
3.3.4.3  Holding companies, and mergers and acquisitions 
3.125.  Chapter 4 of the AMA prohibits mergers and acquisitions if they would cause a substantial 
restraint of competition.79 A company must submit a business report to the JFTC, within 
three months of the end of each business year , if the total assets of the company and its 
subsidiaries exceed specified thresholds: ¥600 billion for a holding company, ¥8 trillion for a 
financial company, and ¥2 trillion for other companies.80 In FY2013, 100 business reports (the 
same as in FY2011) were submitted under Section 9 of the AMA (33 holding companies). There were no notifications of establishment of new holding companies under Section 9 in FY2013 (none 
in FY2011). 
3.3.4.4  International arrangements 3.126.  Most of Japan's EPAs provide for each party to take appropriate measures against 
anti-competitive activities in accordance with its laws and regulations, and to cooperate in 
controlling anti-competitive activities, e.g. by no tifying the other party of enforcement activities, 
cooperation, coordination, requests for enforcement activities, and consideration of the other 
party's interests.
81 Japan has three other bilateral cooperation agreements on anti-competitive 
activities, with Canada, the European Union, and the United States. Furthermore, during the review period the JFTC concluded three memoranda on cooperation with the competition authorities of Viet Nam (28 August 2013), th e Philippines (28 August 2013), and Brazil 
(24 April 2014).  
3.3.4.5  Enforcement 3.127.  Investigations into possible violations of the AMA may be initiated as a result of reports 
from the general public, detection by the JFTC itself, notifications by the Small- and Medium-
Enterprise Agency, or reports by leniency applic ants. The AMA provides two types of measures to 
impose sanctions and thereby deter violations of the Act: administrative measures, such as 
surcharges and orders to take "elimination measures" (cease and desist orders) and criminal 
penalties.
82 In addition, to these measures, the AMA allows  those affected by specific violations of 
the AMA to bring private damages actions (Table 3.18). 
                                               
79 "Substantial restraint of competition" means a situ ation where a market structure changes as a result 
of a merger, and specific companies can control the market  by influencing variables su ch as price, quality, and 
quantity. 
80 A newly-established company that corresponds to an y of these thresholds must submit a notification 
to the JFTC, within 30 days of establishment. 
81 EPAs with: Chile, Chapter 14; India, Chapter 11; Indonesia, Ch apter 11; Malaysia, Chapter 10; 
Mexico, Chapter 12; Peru, Chapter 12;  the Philippines, Chapter 12; Sing apore, Chapter 12; Switzerland, 
Chapter 10; Thailand, Chapter 12; and Viet Nam, Chapter 10. There is no chapter on competition in the EPAs 
with ASEAN or Brunei Darussalam. 
82 Criminal penalties include imprisonment of up to fi ve years or a fine of up to ¥5 million for private 
monopolies and unreasonable restraint of trade, and imprisonment of up to two years or a fine of up to 
¥3 million for international agreements  constituting unreasonable restraint of trade and unfair trade practices, 
restrictions of the number of members of trade associatio ns, and violations of final and binding decisions by the 
JFTC. These criminal proceedings may be initiated only afte r an accusation is filed by  the JFTC with the Public 
Prosecutor General. Appeals are available in the high courts an d eventually the Supreme Court. WT/TPR/S/310/Rev.1 • Japan 
 
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  Table 3.18 Enforcement of competition policy, 2009-13 
Details Fiscal year 
2009 2010 2011 2012 2013  
(A) Cease and desist orders       
Number of cases 26 12 22 20 18 
Private monopolization 0 0 0 0 0 
Cartels 22 10 17 20 17 
Price-fixing cartels 5 6 5 1 8 
Bid-rigging 17 4 12 19 9 
Unfair trade practices 4 2 5 0 1 
Commenced hearings  12 8 40 22 12 
(B) Surcharge payment orders      
Number of addresses 85 152 280 108 176 
Surcharge amount (in ¥ billion) 36.07 72.08 44.25 25.07 30.24 
Commenced hearings 13 22 45 25 13 
(C) Recently processed investigation  cases      
Cases investigated      
Carry-overs from the previous fiscal year 19 22 23 9 13 
New cases begun during the current fiscal year 133 143 157 266 137 
Total 152 165 180 275 150 
Cases processed      
Legal measures      
Cease and desist orders 26 12 22 20 18 
Surcharge payment ordersa 0 0 0 0 0 
Sub-total 26 12 22 20 18 
Others      
Warnings 9 3 2 6 1 
Cautions 69 95 138 208 114 
Discontinued casesb 26 32 9 28 7 
Sub-total 104 130 149 242 122 
Total 130 142 171 262 140 
Carry-overs to the next fiscal year 22 23 9 13 10
Criminal accusations 0 0 0 1 1 
a Surcharge payment orders were made without a recommendation or ce ase and desist order. 
b Discontinued due to lack of  evidence of wrong-doing. 
Source: Information provided by the Japanese authorities. 
3.3.5  Intellectual property rights (IPRs) 
3.3.5.1  Overview 
3.128.  The legal framework on IPRs in Japan has remained largely unchanged since its last review 
although some legislation was amended in 2014. The principal legislation relating to IPRs in Japan 
is listed in Table 3.19. 
3.129.  The Intellectual Property Strategy Headquarters (the Headquarters) was established in the 
Cabinet Secretariat in March 2003 with the purpose of  developing measures to fulfil the mandates 
and to coordinate the work of various governmental authorities responsible for administration and 
enforcement of IPRs (Chart 3.6).83  
                                               
83 The Headquarters comprises political and expert members. Political members include the Prime 
Minister, as Director-General of the Headquarters, al l Cabinet Ministers, and ten expert members. The ten 
expert members are generally drawn fro m industry, law firms, and academia. WT/TPR/S/310/Rev.1 • Japan 
 
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  Table 3.19 Principal legislation relating to IPRs 
Legislation First passed Last 
amended 
Patent Act 1959 2014 
Utility Model Act 1959 2014 
Designs Act 1959 2014 
Trademark Act 1959 2014 
Copyright Act 1970 2014 
Law on the Circuit Layout of Semiconductor Integrated Circuits 1985 2014 
Plant Variety Protection and Seed Act 1998 2007 
Unfair Competition Prevention Act 1993 2012 
Law on Exceptional Provisions for the Registration of Program Works 1986 2009 
Law on Management Business of Copyright and Neighbouring Rights 2000 2008 
Act on Special Provisions for Procedures Related to Industrial Property Right 1990 2014 
Patent Attorney Act 2000 2007 
Intellectual Property Basic Act 2002 2003 
Act on International Applications under the Patent Cooperation Treaty  1978 2014 
Law Concerning the Exceptional Provisions to the Copyright Act, required as 
a consequence of the Enforcement of the Universal Copyright Convention 1956 2000 
Note: There are also enforcement laws for several of these acts. 
Source: Information provided by the Japanese authorities. 
Chart 3.6 Structure of IPR administration and enforcement 
Cabinet Secretariat 
Intellectual Property Strategy Headquarters
Ministry of Economy, 
Trade and Industry 
(METI) 
Agency for Cultural 
Affairs Food Industry Affairs BureauMinistry of Education, 
Culture, Sports, 
Science and Technology 
(MEXT) Ministry of Agriculture, 
Forestry and Fisheries
(MAFF)Ministry 
of Finance
(MOF) 
New Business and 
Intellectual Property Division •P o l i c y  P l a n n i n g a n d  
Coordination Department
•T r a d e m a r k ,  a n d  
Administrative Affairs 
Department
• Patent and Design 
Examination Department (Physics, Optics, Social
Infrastructure and Design)
• Patent Examination
Department (Mechanical  Technology)
• Patent Examination
Department (Chemistry,  Life Science and Material Science)
• Patent Examination 
Department (ElectronicTechnology)
• Trial and Appeal DepartmentCustoms and 
Tariff  Bureau
Plant Variety Protection Office 
(PVP Office )Japan Patent Office (JPO)
Japan Copyright Office Customs Clearance 
Division
Office of IPR
 
Source: WTO Secretariat on the basis of information provided by the Japanese authorities. WT/TPR/S/310/Rev.1 • Japan 
 
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  3.130.  On 7 June 2013, the IP Strategy Headquarters issued the Intellectual Property Policy Vision 
to address shortcomings within the current climate for development of intellectual property by improving registration of intellectual property  both in Japan and abroad, the rights from 
registration, and the protection of those rights. The Vision notes progress made since the 
Intellectual Property Basic Act was passed in 2003 and outlines the measures that should be taken 
to continue improvements over the next twenty years around four pillars:  
• building up a global intellectual property system for enhancing industrial 
competitiveness through continuing cooperative relationships with advanced countries 
and countries with emerging markets so that the Japanese IP system can become a standard. In addition enhancing assistance to Japanese companies to expand into these markets and attract human capital into Japan; 
• provide support for enhancing intellectual property management by SMEs and venture 
companies by raising awareness of the importance of IP within SMEs and providing government support for IP activities and acquisition of rights for their use overseas; 
• improving the environment for adjusting to the digital network society by developing 
platforms for content circulation for data and entertainment: "In order to stimulate the creation of new industries and to continue the development of culture, it is necessary to 
create a cycle of content reproduction and us e by overcoming the conflicting interests of 
rights-holders and users, and by designing a flexible system that would promote new 
business creation"; 
• strengthening soft power focusing on the IP content industry through initiatives such as 
"cool Japan", improving consumption abroad of Japan cultural and entertainment 
products through an outbound approach (promotion and information abroad), an inbound approach (establish a cultural centre to draw human capital and technology 
into Japan), and protection from internal and external counterfeits, and pirated 
products.
84 
3.131.  The IP Strategic Program 2013 identifies specific plans of action and provides concrete 
proposals for future work, including on standa rdization and cutting edge digital network.  
3.132.  Since it joined WIPO in 1975, Japan has acceded to 17 international intellectual property 
treaties administered by the WIPO; it is currently a member of seven committees.85 Japan also has 
an extensive network of bilateral treaties affecting intellectual property.86  
3.3.5.2  Patents 
3.133.  The process to follow for patent applications is described in Chart 3.7. According to the 
authorities, the average time from "Requesting for Examination" to "Substantive Examination" 
(first action pendency) was approximately 11 mont hs at the end of FY2013. The average time from 
"Requesting for Examination" to "Decision to Grant a Patent or Decision of Refusal" (total pendency) was approximately 30 months in FY2012. The designated period for applicants to 
submit "Written argument/Amendment" is 60 days (for domestic applicants) or three months (for 
foreign applicants) after "Notification of Reasons for Refusal". The average period between "Appeal against Decision of Refusal" and "Appeal Decision to Grant a Patent (or of Refusal)" is approximately 14 months. The average period between "Appeal for invalidation" and "Appeal 
decision of invalidation (or to maintain the Registration)" is approximately 9 months. 
                                               
84 Intellectual Property Strategy Headquarters (2013). 
85 See Table III.10 in WTO (2013). 
86 See WIPO, http://www.wipo.int/wipolex/en/profile.jsp?code=JP . WT/TPR/S/310/Rev.1 • Japan 
 
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  Chart 3.7 Flowchart for patent applications 
Application
Publication of 
Unexamined ApplicationProcedures for obtaining a Patent Right
Formality 
Examination
(Patent Fee Payment)
RegistrationDecision to 
Grant a PatentSubstantive  
ExaminationRequest for
Examination
Appeal 
ExaminationAppeal for 
InvalidationPublication of 
Patent GazetteNo Request for
Examination
Supreme CourtIntellectual Property High CourtAppeal Decision of 
InvalidationAppeal 
Decision to
Grant a
PatentWritten Argument
/Amendment
Decision of RefusalNotification of Reasons 
for RefusalDeemed
Withdrawal
Appeal ExaminationAppeal against Decision 
of Refusal
Appeal 
Decision of
Refusal
Appeal Decision 
to Maintain the
RegistrationWithin
three years(18 months after filing)
 
Source: JPO online information. Viewed at: http://www.jpo.go.jp/tetuzuki_e/t_gaiyo_e/pa_right.htm  . 
3.134.  Under the Industrial Competitiveness Enhanc ement Act of 2013, the cost of filing patent 
applications by an individual, a small- or medium-sized enterprise that has commenced business or been established less than ten years or a micro-enterprise, has been reduced, including 
examination requests, patent annuities (for the first to tenth year) for domestic applications as 
well as search fee, transmittal fee, and pr eliminary examination fee for PCT international 
applications in Japanese. Those companies filing PCT international applications in Japanese will 
have two-thirds of the international filing fee and handling fee reimbursed by the Japan Patent 
Office (JPO).
87 The JPO list of fees for IP applications indicates a specific fee for a patent 
application in a foreign language.88 
3.135.  In 2014, the Patent Act was revised to provide relief measures so that applicants are 
entitled to extend certain periods required for f iling, examination, and other procedures when they 
have compelling reasons, e.g. following disasters. These measures will also be applied to the same cases covered by the Utility Model Act, Design Act, Trademark Act, and Act on International 
                                               
87 Uehara A. (2014). 
88 JPO online information. Viewed at: http://www.jpo.go.jp/tetuzuki_e/ryoukin_e/ryokine.htm . WT/TPR/S/310/Rev.1 • Japan 
 
- 61 - 
 
  Applications under the Patent Cooperation Treaty. In addition, the Act was revised to create a new 
system for submitting an opposition to a granted patent, so in order to achieve the stability of patent rights earlier. 
3.136.  Reducing pendency to around 14 months by FY2023 from 29.6 in 2012 remains an 
objective.
89 In April 2014, the JPO released the Quality Policy on Patent Examination which 
outlines the fundamental principles of quality management in patent examination in order to grant high-quality patents.
90 Based on this Quality Policy, the JPO is dedicated to achieving the fastest 
and highest quality examination in the world.  
3.137.  In order to reduce pendency and reinforce examination capacity, the JPO has increased the 
number of fixed-term patent examiners and estab lished a more efficient and effective examination 
system by outsourcing preliminary prior art searches. According to the authorities, the JPO 
achieved its goal of 11-months for the first action pendency (the average pendency from 
requesting examination to the substantive examination) at the end of FY2013. 
3.138.  The number of applications for patents made to the JPO was 328,436 in 2013, compared 
with 342,796  in 2012 (Table 3.20). In 2013, applications originating from Japan represented the 
vast majority, but a significant proportion came mainly from the United States, Germany and the Republic of Korea. The number of patents grante d has increased steadily reflecting work by the 
JPO to reduce patent pendency.  
Table 3.20 Patent applications  and patents granted, 2005-13 
 2005 2006 2007 2008 2009 2010 2011 2012 2013
Patent applications to JPO by origin  
Japan  367,960  347,060 333,498 330,110 295,315 290,081 287,580  287,013 271,731
Other 59,118  61,614 62,793 60,892 53,281 54,517 55,030  55,783 56,705
     
Patent applications originating fr om Japan to all patent offices
Total applications origin 
Japan 530,005 517,486 508,263 509,990 463,601 468,417 475,051  490,444 ..
Patents granted by JPO by origin    
Japan 111,088 126,804 145,040 151,765 164,459 187,237 197,594  224,917 225,571
Other 11,856  14,595 19,914 25,185 28,890 35,456 40,729  49,874 51,508
.. Not available. 
Source: Information provided by the Japanese authorities. 
3.139.  Japan participates in the Patent Prosecution Highway (PPH), whereby applicants may 
request that their applications determined to be patentable in the Office of Earlier Examination 
(OEE) undergo accelerated examination in the Office of Later Examination (OLE) based on 
simplified procedures. There is no fee for using this service.91  
3.140.  The Government of Japan also supports SMEs on acquisition of IPRs through the following 
two initiatives: (i) support through consultations to SMEs about their overseas expansion at a 
support centre (e.g. IP comprehensive support counters); and (ii) support in terms of fees, subsidizing half the costs SMEs incur in filing foreign applications when they are planning to 
expand their business overseas, and reducing search  fees by two-thirds where the PCT application 
is filed in Japanese by an individual, a small- or medium-sized enterprise that has commenced business or been established less than ten years or a micro-enterprise. 
                                               
89 The examination period excludes cases where the JPO requests an applicant to respond to the second 
notification of reasons for refusal an d other actions by submitting an am endment and other documents within a 
period stipulated under the law. 
90 JPO Press Release (25 April 2014), JPO Releases "Quality Policy" on Patent Examination.  Viewed at: 
http://www.jpo.go.jp/seido_e/s_gaiyou_e/patent_policy.htm  . 
91 The purpose of the PPH is to facilitate an appl icant's acquisition of a patent at an early stage 
worldwide and to enhance the utilization of search and ex amination results between IP offices so as to reduce 
the burden of examination and enhance the quality of examination worldwide. The JPO proposed the PPH and 
enacted it with the United States in 2006 for the first time in the world. Since 2013, Japan has implemented 
PPH with countries such as Australia, Colombia, Indonesia, Malaysia, Poland and Thailand. As at 1 October 2014, 33 offices participate in the PPH. WT/TPR/S/310/Rev.1 • Japan 
 
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  3.141.  In 2014, the Japan IP High Court made the first decision on the standard essential patent 
case (Apple vs. Samsung). The Court used a new approach to address this issue after the United States made its decisions.
92 
3.3.5.3  Utility models (UMs) 
3.142.  Under the Utility Model Act, the process for re gistration of a utility model is similar to that 
of a patent but without the substantial examination of novelty and inventive step. A utility model application can be converted into a patent application within three years of filing the application. 
Applications for utility models, designs and trademarks must be made in Japanese. 
3.143.  In December 2013, the JPO changed the oper ation related to the description of the report 
of the utility model technical opinion. Now, when examiners do not cite a specific prior art, they explain in the report either that they could or could not conduct effective search because of clarity 
of claims. In 2014, under the revision of the Patent Act, and in line with the legal systems 
overseas, the Utility Model Act was to be revised to take relief measures so that applicants are entitled to extend certain periods required for filing and other procedures when they have 
compelling reasons, e.g. following disasters. 
3.144.  Nearly all applications for registration of utility models are accepted (Table 3.21). This is 
because for all the applications which have passed the formality check, as well as the check of the 
basic requirements, the registration of the utility model right is instituted without going through a 
substantive examination of novelty, inventive step, etc. 
Table 3.21 Utility models applications and registrations, 2005-13 
 2005 2006 2007 2008 2009 2010 2011 2012 2013
UM applications to JPO by origin  
Japan  9,421  8,922  8,399  7,717  7,799  6,889  6,305   6,292  5,965 
Other 1,966  2,043  1,916  1,735  1,708  1,790  1,679   1,820  1,657 
UM registrations granted by JPO by origin 
Japan 8,462 8,523  8,160  7,187  7,361  6,756  5,998   6,221  5,738 
Other  2,111  2,070  1,920  1,730  1,658  1,816  1,597   1,833  1,625 
Source: Information provided by the Japanese authorities. 
3.3.5.4  Designs 
3.145.  The JPO also deals with the examination an d registration of design applications under the 
Designs Act. Japan is now preparing for accedi ng to the Geneva Act of the Hague Agreement 
Concerning the International Registration of Industrial Designs. In 2014, Japan's Design Act was 
revised to improve the provisions for simultaneously filing a design application with multiple offices 
overseas in one procedure based on the Geneva Act, so as to reduce the cost imposed on applicants. 
3.146.  Because of the recent difficult economic conditions, design applications have decreased but 
the level of registrations granted by JPO has increased (Table 3.22). Applicants are becoming more selective in filing applications, and more likely to file applications with high "registrability" in Japan, 
which causes the high level of acceptance. 
Table 3.22 Design applications  and registrations, 2005-13 
 2005 2006 2007 2008 2009 2010 2011 2012 2013
Design applications to JPO by origin  
Japan  35,746  33,094  32,202 29,621 27,674 28,083 26,658  27,934  26,407 
Other 3,508  3,630  4,342 3,948 3,201 3,673 4,147  4,457  4,718 
Design registrations granted by JPO by origin 
Japan 29,971  27,034  25,228 25,986 25,819 24,458 23,042  24,610  24,272 
Other 2,662  2,655  3,061 3,396 2,993 2,980 3,232  3,739  4,016 
Source: Information provided by the Japanese authorities. 
                                               
92 Japan IP Court online information. Viewed at: 
http://www.ip.courts.go.jp/eng/vcms_if/25ne10043yosi.pdf. WT/TPR/S/310/Rev.1 • Japan 
 
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  3.3.5.5  Trademarks 
3.147.  Protection under the Trademark Act is only  available for registered trademarks, although 
some protection under the Unfair Competition Prevention Act is available for unregistered trademarks. In 2014, Japan's Trademark Act was revised in two respects. First, it was revised to 
expand the scope of protection by adding non-trad itional trademarks such as "colour" and "sound" 
that are already being protected in some foreign countries. Secondly, the Act is revised to expand the scope of eligible entities that can register the regional collective trademarks by adding 
associations of commerce and industry, chambers of commerce and industry, and specified 
non-profit corporations. 
3.148.  In May 2014, the Trademark Act was revised to protect non-traditional marks (i.e. sound, 
motion, hologram, color per se, and position) already protected in Europe and the United States. 
This aims to support companies' diverse brand strategies. The revised Act is expected to come into 
effect in Spring 2015.  
3.149.  Chart 3.8 describes the procedure for registration of a trademark.  
Chart 3.8 Procedure for registering a trademark 
Certificate of trademark registrationTrademark
1. A trademark right becomes 
effective upon registration of itsestablishment and the term is 10years from the date of registration
of establishment.  However, the 
term may be renewed by making an application for registration of renewal.
Trademark
registration
registerApplication for
trademark registration
Decision to grant a trademark registration or
trial decision to grant a trademark registration
Registration fee
payment form for
registration of the 
establishment of a 
trademark right2. The payment of registration fee for registration
of the establishment of a trademark right must bemade within 30 days from the date on which acopy of the decision or the trial decision to grant
a trademark registration.
If the registration fee is not paid during the period,the trademark application will be dismissed.
3. The trademark right is registered on the trademark registration register and a "certificationof trademark registration" is issued to the owner oftrademark right.
Application for
registration of 
renewal
Transfer /
changeTrademark
Gazette
5. In order to renew the term of the trademark right,
an application for registration of renewal withpayment of registration fee must be made for 6months before the expiration of the term.
If an application for registration of renewal is not be
filed by the date of expiration of the term, anapplication is allowed to be filed within 6 monthsfrom the date of expiration of the term.  However,
in addition to the payment of the registration fee,
surcharge must be paid in this case.
6. If the trademark right is transferred or the indication of theowner is changed after theestablishment has been registered,
an application for registration of the
transfer or change must be filed inorder to register new information onthe trademark registration register.4. When the establishment oftrademark right is registered, Trademark Gazette is issued.
Trademark 
registration 
register
 
Source: JPO online information. Viewed at: 
http://www.jpo.go.jp/seido_e/s_gaiyou_e/registration_trademark.htm . 
3.150.  When a trademark application is filed, it takes approximately 4.3 months to send first 
notification including reasons for refusal. The pe riod from the payment of registration fee to 
establishment of a trademark right to the registration of it on the Trademark Register is WT/TPR/S/310/Rev.1 • Japan 
 
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  approximately two weeks when the payment proc edure is made via internet and around one 
month when it is made in paper form. The period from the establishment of a trademark right to the publication of the Trademark Gazette is around  one month. The period from an application for 
registration of renewal of a trademark right to the registration of the renewal on the Trademark 
Register is about two weeks when the application is made via internet and about one month when 
it is made in paper form. It takes 10 days to register a transfer of a trademark right from a former holder to a new holder or a change of the name  or the address of a holder on the Trademark 
Register. 
3.151.  In 2013, the number of trademark applications and registrations reached 117,674 and 
103,399, respectively (Table 3.23). 
Table 3.23 Trademark applicatio ns and registrations, 2005-13 
 2005 2006 2007 2008 2009 2010 2011 2012 2013
Trademark applications by origin  
Japan  114,015  111,754  118,155 95,674 90,474 92,163 84,673  95,548  92,495 
Other 21,761  24,023  25,066 23,511 20,367 21,356 23,387  23,462  25,179 
Trademark registrations by origin 
Japan 80,962  88,411  79,836 82,469 88,449 79,338 70,800  77,129  82,736 
Other 13,477  15,024  16,695 17,774 20,268 18,442 18,479  19,231  20,663 
Source: Information provided by the Japanese authorities. 
3.3.5.6  Geographical indications (GIs) 
3.152.  GIs are protected under the Trademarks Act and the Unfair Competition Prevention Act. 
Additional protection for GIs for wines and spirits,  pursuant to Article 23 of the TRIPS Agreement, 
and for sake, is administered by the National Tax Agency and available under the Law Concerning 
Liquor Business Association and Measures for Se curing Revenue from Liquor Tax through its 
Labelling Standard Concerning Geographical Indications. 
3.153.  Japan has no GI registration system. The Commissioner of the National Tax Agency 
designates places where wines, spirits, and sake are produced if the GI fulfils the fundamental principle, i.e. that the wines and spirits possess specific characteristics in quality or good 
reputation and place. So far, six GIs have been designated for Japanese liquors, including Iki, 
Kuma, Ryukyu, Satsuma (spirits), Hakusan (sake) and Yamanashi (wine). The abuse of GIs is dealt with in court, based on the Unfair Compet ition Prevention Act, on a case-by-case basis. 
3.154.  In June 2014, the Act for Protection of Names of Designated Agricultural, Forestry and 
Fishery Products and Foodstuffs was promulgated. The aim is to protect GIs of agricultural 
products, secure the interest of producers of such products and thereby contribute to the 
development of the sector, and ensure the interest of consumers. This Act is to enter into force 
by June 2015.  
3.3.5.7  Copyright 3.155.  In 2012, the Copyright Act was amended on  the incidental use of copyright works to 
strengthen the protection against illegally downloading music or film files, including criminal 
penalties.
93 In 2012, the Beijing Treaty on Audiovisual Performances was adopted to reinforce the 
protection of the performers' rights. To accede to  the Beijing Treaty and to clarify that not only 
books published in paper but also electronic book s are covered by the right of publication, the 
Copyright Act was amended in 2014. This am endment will enter into force in 2015.94  
3.3.5.8  Enforcement 3.156.  The annual Survey Report on Losses Caused by Counterfeiting for FY2013, continued to 
show substantial, though declining, losses am ong the 8,081 enterprises covered in the survey: 
                                               
93 Copyright Research and Information Ce ntre online information. Viewed at: 
http://www.cric.or.jp/english/index.html . 
94 With the progress of digitization and networking, th e number of electronic b ooks and of pirated copies 
of published works which are illegally reproduced and up loaded on the internet has been increasing rapidly. WT/TPR/S/310/Rev.1 • Japan 
 
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  down from ¥125.5 billion in FY2011 to ¥100.1 billion in FY2012 affecting 21.8% of those 
surveyed.95 About two-thirds of those surveyed indicated that they had suffered losses in China 
with a fifth losing in Chinese Taipei. 
3.157.  The Intellectual Property High Court (IP High Court), a special branch within the Tokyo 
High Court, inter alia,  hears suits against appeal/trial decisions made by the JPO, as the court of 
first instance, and civil cases relating to intellectual property as the court of second instance.96 
3.158.  In 2013, 353 suits against appeal/trial decisions made by the JPO were commenced 
(413 in 2010) and 429 were terminated (444 in 2010). In the same year, 114 intellectual property 
appeal cases were commenced (104 in 2010) and 99 were terminated (101 in 2010). 
3.159.  An individual or enterprise may seek to have imports and exports suspended on the 
grounds of infringement of the following IPRs: tr ademarks, copyright and related rights, patents, 
designs, utility models and PBRs, as well as on the grounds of violation of unfair competition law. 
The process toward such suspension is initiated upon request for suspension of imports and exports to the customs office or on ex-officio . In such cases, the customs official is responsible for 
determining whether there is such an infringement. For goods already imported or produced in 
Japan, a lawsuit through the courts of first instance is required or, if the parties agree, arbitration under the Arbitration Centre for Industrial Proper ty. Appeals to decisions by the court of first 
instance shall be made to the IP High Court regarding cases on a patent right, utility model right, 
right of layout-designs of integrated circuits or an author's right over a computer programme throughout Japan, as well as other IP cases within the Tokyo High Court jurisdiction. 
3.160.  Border enforcement plays a pivotal role in  preventing IPR-infringing goods from entering 
and exiting Japan. In FY2013, there were 28,135 case s of seizure/denial of entry at the border due 
to IPR infringement (against 23,280 in 2011), while the number of items seized or denied entry went from 728,000 in 2011 to 1.1 million in 2012 and 628,000  in 2013 (Table 3.24).  
Table 3.24 Seizure of imports, 2009-13 
Category Main items 2009 2010 2011 2012 2013
Products concerned ('000 units) 
Shoes Sports shoes 26 166 137 37 23
Accessories Necklaces, rings, charms 80 84 85 27 20
Clothing T-shirts, sweatshirts, jeans 112 45 77 94 82
Bags Handbags, purses 72 46 54 84 85
Medicine Medicine 85 40 53 390 43
Household utensils Thermos bottles, mirrors 28 22 40 3 8
Hats Hats, caps 23 37 29 11 14
Mobile phones and 
equipment Mobile phones, and its coverage 15 11 28 63 90
Clothing equipment Zippers 65 48 17 13 7
Computer accessories Computers 14 18 14 30 13
Other Accessories of bags, CDs, watches, key 
cases, electronic appliances, etc. 524 114 194 367 243
Total  1,044 631 728 1,118 628
    
Types of violation (cases) 
Patent rights  15 9 8 3 2
Utility model rights  0 0 0 0 0
Design rights  88 56 88 79 43
Trade mark rights  21,415 22,994 22,843 26,304 27,975
Copyright (related rights)  423 273 484 322 383
Plant breeders' rights  0 0 1 0 0
Unfair competition  19 1 3 2 19
Total  21,893 23,233 23,280 26,607 28,135
Source: Information provided by the Japanese authorities. 
3.161.  Japan Customs does not distinguish between seizures made following complaints and on 
an ex-officio  basis in statistics. The same procedure is applied after determining whether IP rights 
are infringed or not. 
                                               
95 METI (2014). 
96 WTO (2013). WT/TPR/S/310/Rev.1 • Japan 
 
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  3.162.  Since 2002, Japan has concluded 13 economic partnership agreements (EPA) with its 
trading partners, mainly in Asia. Most of these EPAs have an IP section, the main purpose of which is to secure adequate, effective, non-discrim inatory, and transparent IP protection and 
enforcement in trade. Moreover, Japan attaches great importance to IP enforcement in various 
multilateral cooperation fora, such as the WTO TRIPS Council, WIPO, APEC, and OECD. 
 
 WT/TPR/S/310/Rev.1 • Japan 
 
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  4  TRADE POLICIES IN SELECTED SECTORS 
4.1  Agriculture 4.1.  In 2012, agriculture contributed around 1.02% to GDP, which is about the same as in 2004 
(Table 4.1), and 3.6% of total employment in 2013. Although agriculture is a relatively small part 
of the economy and employment it is important for historical and cultural reasons and, according 
to the authorities, for food security. 
Table 4.1 Agriculture in the economy, 2004-12 
 2004 2005 2006 2007 2008 2009 2010 2011 2012
GDP total 
(¥ billion) 503,725 503,903 506,687 512,975 501,209 471,139 482,384 471,311 473,784
GDP agriculture 
(¥ billion) 5,600 5,134 4,991 4,834 4,743 4,522 4,769 4,544 4,835
Employment total 
(million persons) 63.29 63.56 63.89 64.27 64.09 63.14 62.98 62.89 62.70
Employment agriculture 
(million persons) 2.64 2.54 2.50 2.52 2.47 2.44 2.37 2.31 2.24
Source: Statistical Year Books and authorities. 
4.2.  As a mountainous island nation, relatively little land in Japan is suitable for agriculture: out of 
a total land area of approximately 377,900 km2, 12% is cultivated and a further 0.9% is 
grassland.1 The area under cultivation has been declining for some years as land has been 
withdrawn from production, principally through "dilapidation artificially"2 which the authorities 
defined as "the land use transformation that cultivated land has been converted to other uses 
including construction work and abandonment." 
4.3.  There have been several changes to the legislation on land ownership since the major 
reforms of the late 1940s and the provisions of th e Land Act of 1952 limiting land holdings to 3 ha 
were removed in 1970. However, farms remain sm all and holdings are often fragmented: in 2010 
there were 2.5 million farm households with an av erage size of 1.3 ha often in several different 
parcels. Of the 2.5 million farm households, 1.6 million were classified as commercial farm 
households (defined as farms of at least 0.3 ha or annual sales of at least ¥500,000). Commercial 
farms may then be classified as: part-time and full-time; or as business, semi-business, or side-business. Even commercial farmers farms are usually small in size, although in Hokkaido the 
majority of the commercial farms are over 10 ha (Table 4.2).
3  
4.4.  Several factors account for the small fragmented structure of farms and the relatively low 
degree of consolidation. The land reforms of the 1940s and the irrigation patterns and labour-
intensive nature of rice farming meant that farms were quite productive during that period. 
However, mechanisation has greatly reduced labour requirements allowing part-time farming while many farmers are reluctant to rent or sell land for farming for social and cultural reasons as well as the opportunity to make large capital gains should the land be rezoned for construction. A high 
degree of government support and protection for farming has also meant that small-scale farming 
remains profitable, particularly when supplemented by non-farm incomes. However, the result has been a steadily aging farming population and an inefficient agricultural sector.
4, 5 
4.5.  Gross output of agricultural products has been quite stable over the past ten years as, in 
general, domestic prices and national production have changed very little. Rice remains the most 
important single product but its production value is less than that of vegetables or livestock 
(Table 4.3). Rice accounts for about a quarter of gr oss output, with nearly half of commercial farm 
households specialized in rice production and well over half of cultivated land under rice production.  
                                               
1 MIC (2014), Table 1-6. 
2 MIC (2014), Table 7-8. 
3 MAFF (2014). 
4 Jones RS, Kimura S. (2013). 
5 Godo Y., Takahashi D. (2012). WT/TPR/S/310/Rev.1 • Japan 
 
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  Table 4.2 Farm households and average farm size, 2010-13 
  2010 2011 2012 2013
Farm households '000 2,538 .. .. .. 
Of which      
 Commercial farm households '000 1,631 1,561 1,504 1,455 
 Of which      
  Full-time '000 451 439 423 415 
  Part-time '000 1,180 1,122 1,081 1,040 
 Commercial farm households '000 1,631 1,561 1,504 1,455 
 Of which      
  Business farms '000 360 .. .. .. 
  Semi-business '000 389 .. .. .. 
  Side-business '000 883 .. .. .. 
Ha cultivated land/household      
Commercial farm households Ha 1.96 2.02 2.07 2.12 
Business farm household Ha 4.88 5.05 5.18 5.38 
.. Not available. 
Note: Definitions: 
Farm household: operates farming with 10 ares or mo re of cultivated land or sales of agricultural 
products of ¥150,000 and over in the previous year. 
 Commercial farm household: cultivated land under  management of 30 ares and over or with annual 
sales of agricultural products amounting to ¥500,000 and over in the previous year. 
 Business farm household: commerci al farm household where the percen tage of agricultural income is 
more than 50% of the household income, with one and more family members engaged in own farming 
for 60 days and longer, and under 65 years old. 
 Semi-business farm household: commercial farm hous ehold non-agricultural income is the majority of 
the household's income, one or more family member s engaged in own farming for 60 days and longer, 
and under 65 years old. 
 Side-business farm household: farm household with no member engaged in own farming for more 
than 60 days and under 65 years old. 
 Full-time farm household: no  household member engaged in  jobs other than farming. 
Source: MAFF (2014), The 88th Statistical Yearbook of Ministry of Ag riculture, Forestry and Fisheries (2012-
2013).  Viewed at: http://www.maff.go.jp/e/tokei/kikaku/nenji_e/88nenji/index.html#nse001  
[December 2014]. 
Table 4.3 Total agricultural production an d production of selected products, 2003-12 
 Gross 
output Crops Rice Vegetables Wheat Soya beans 
 (¥ bn) (¥ bn) ('000 
tonnes) (¥ bn) ('000 
tonnes) (¥ bn) ('000 
tonnes) (¥ bn) ('000 
tonnes) 
2003 8,857 6,460 2,342  7,792 2,097 15.169 .. 856 .. 232
2004 8,714 6,183 1,991  8,730 2,143 14,540 .. 860 .. 163
2005 8,512 5,940 1,947  9,074 2,033 14,547 .. 875 .. 225
2006 8,332 5,818 1,815  8,556 2,051 14,324 .. 837 .. 229
2007 8,259 5,720 1,790  8,714 2,089 14,746 .. 910 .. 227
2008 8,466 5,820 1,901  8,823 2,111 14,622 .. 881 .. 262
2009 8,190 5,590 1,795  8,474 2,085 14,072 .. 674 .. 230
2010 8,121 5,513 1,552  8,483 2,249 13,365 .. 571 .. 223
2011 8,246 5,639 1,850  8,402 2,134 13,513 .. 746 .. 219
2012 8,525 5,879 2,029  8,523 2,190 13,799 .. .. .. ..
  Livestock Beef 
cattle Beef Milk Pigs Pig 
meat Hen eggs 
  (¥ bn) (¥ bn) ('000
tonnes) (¥ bn) ('000 
tonnes) (¥ bn) ('000 
tonnes) (¥ bn) ('000
tonnes) 
2003  2,329 400  495 694 8,400 467 1,260 345 2,529
2004  2,458 446  512 688 8,329 519 1,272 387 2,491
2005  2,506 473  498 676 8,285 499 1,245 435 2,481
2006  2,453 478  496 649 8,138 498 1,247 401 2,488
2007  2,479 485  503 636 8,007 523 1,251 402 2,583
2008  2,585 459  519 660 7,982 579 1,249 450 2,554
2009  2,547 482  516 703 7,910 512 1,310 421 2,508
2010  2,553 464  514 675 7,720 529 1,292 442 2,515
2011  2,551 463  500 658 7,474 536 1,267 451 2,483
2012  2,588 503  518 687 7,630 537 1,297 420 2,507
.. Not available. 
Source: Statistical Year Books and authorities. WT/TPR/S/310/Rev.1 • Japan 
 
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  4.1.1  Trade 
4.6.  Japan has a deficit in trade in agricultural goods with imports of over US$61.4 billion and 
exports of US$3.4 billion in 2013.6 In current U.S. dollar value terms, both imports and exports 
have increased over the past ten years, but are down compared to their 2011 and 2012 peaks 
(Chart 4.1).  
Chart 4.1 Trade in agriculture, 2004-13 
(US$ billion and %) 
0%1%2%3%4%5%6%7%8%9%10%
0102030405060708090100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Exports of agricultural products (US$ billion) Imports of agricultural products (US$ billion)
Exports of agricultural products as a % of total exports Imports of agricultural products as a % of total imports
 
Source: UNSD Comtrade database. 
4.7.  Imports of agricultural products are widely spread across many different tariff lines with the 
top ten products representing less than 50% of total agricultural imports. Although imports 
in 2013 were lower than the previous two years th ey were still about 50% higher than in 2006 (in 
current U.S. dollar terms). Several of the main imported tariff lines are cereals and oilseeds, a 
significant proportion of which is for processing  into food and animal feedstuffs (Table 4.4). 
4.8.  Exports of agricultural products from Japa n tend to be of processed products. Although the 
overall value of exports has grown over the past few years, performance has been mixed among 
different tariff lines; for example exports of cigars and cigarettes have been stable in value while 
declining in volume while exports of bakers' wares and other fermented beverages have increased in both volume and value (Table 4.5).  
Table 4.4 Imports of agri cultural products, 2006-13 
HS2002 – Products  2006 2007 2008 2009 2010 2011 2012 2013
 Total US$ million 41,798 45,852 55,757 48,098 53,203  66,746  66,164 61,383 
1005 - Maize '000 tonnes 16,883 16,628 16,460 16,294 16,188  15,285  14,895 14,401 
US$ million  2,586 3,843 5,578 3,770 3,956  5,355  5,127 4,750 
2402 - Cigars, … and cigarettes '000 tonnes 99 92 86 85 78  90  83 80 
US$ million 3,190 2,989 3,169 3,503 3,511  5,777  5,367 4,103 
0203 - Meat of swine, fresh, chilled 
or frozen '000 tonnes 725 761 818 703 753  793  779 738 
US$ million 3,299 3,435 4,164 3,949 4,511  5,225  5,122 3,996 
1602 - Other prepared or 
preserved meat, meat offal or 
blood '000 tonnes 534 535 482 503 554  612  656 654 
US$ million  1,753 1,804 1,930 2,024 2,291  2,855  3,126 2,960 
1001 - Wheat and meslin '000 tonnes 5,337 5,275 5,781 4,703 5,476  6,214  5,970 6,200 
US$ million 1,280 1,635 3,277 1,448 1,668  2,710  2,156 2,278 
                                               
6 For the purposes of this section of the Trade Policy Report, the definition of ag ricultural product used is 
that set out in Annex 1 of the Agreement on Agriculture where fish and fish products are taken to include HS2002 Headings 020840, 03, 051191, 1504, 1603, 1604, 1605, and 230120. WT/TPR/S/310/Rev.1 • Japan 
 
- 70 - 
 
  HS2002 – Products  2006 2007 2008 2009 2010 2011 2012 2013
1201 - Soya beans '000 tonnes 4,042 4,161 3,711 3,390 3,456  2,831  2,727 2,762 
US$ million  1,282 1,663 2,364 1,750 1,834  1,812  1,811 1,883 
1205 - Rape or colza seeds '000 tonnes 2,293 2,154 2,313 2,072 2,344  2,319  2,408 2,461 
US$ million 717 957 1,570 946 1,164  1,541  1,658 1,682 
0901 – Coffee '000 tonnes 428 396 394 397 417  423  387 464 
US$ million 1,022 1,067 1,267 1,153 1,406  2,059  1,700 1,586 
2204 - Wine of fresh grapes  '000 tonnes 173 174 180 188 201  215  .. 463 
US$ million  1,173 1,253 1,331 1,079 1,173  1,331  1,575 1,582 
0201 - Meat of bovine animals, 
fresh or chilled '000 tonnes 223 216 199 213 211  213  212 212 
US$ million  1,267 1,281 1,248 1,157 1,285  1,454  1,515 1,455 
0202 - Meat of bovine animals, 
frozen '000 tonnes 237 258 259 268 288  304  302 322 
US$ million  675 767 895 839 1,004  1,190  1,245 1,275 
Source: UNSD Comtrade. 
Table 4.5 Exports of agri cultural products, 2006-13 
HS2002 - Products  2006 2007 2008 2009 2010 2011 2012 2013
       Total US$ million  2,226 2,480 2,929 2,999 3,480 3,552 3,512 3,355
2106 - Food preparations 
n.e.s. '000 tonnes 21 24 25 23 23 22 22 22
US$ million  234 258 303 333 365 376 363 336
2103 - Sauces and 
preparations '000 tonnes 69 72 70 69 72 70 69 74
US$ million  205 214 239 273 313 326 317 289
2402 - Cigars, … and 
cigarettes '000 tonnes 17 17 18 16 16 16 14 13
US$ million  227 249 260 274 297 323 300 228
1905 - Bread, pastry, … 
other bakers' wares '000 tonnes 17 20 20 16 18 16 18 22
US$ million  114 133 161 153 183 180 208 218
2202 - Waters with added 
sugar '000 tonnes 29 34 43 42 48 43 .. 132
US$ million  59 70 105 108 136 128 151 127
4103 - Other raw hides and 
skins '000 tonnes 64 65 67 71 69 69 70 71
US$ million  65 66 103 65 69 113 122 125
1209 - Seeds, fruit, spores, 
for sowing '000 tonnes 2 2 2 1 2 1 1 1
US$ million  98 99 104 108 123 137 117 119
2206 - Other fermented 
beverages '000 tonnes 11 12 13 13 15 16 .. 77
US$ million  55 63 77 81 101 116 117 112
602 - Other live plants, 
cuttings, and slips '000 tonnes 9 21 .. 13 .. .. .. ..
US$ million  23 46 54 51 74 87 105 100
2208 - Alcohol of strength 
less than 80% vol. '000 tonnes 8 8 7 9 9 8 .. ..
US$ million  39 45 53 53 62 72 84 88
.. Not available. 
Source: UNSD Comtrade. 
4.1.2  Agricultural policies 
4.1.2.1  Legal and institutional framework 4.9.  The Ministry of Agriculture, Forestry and Fisheries (MAFF) is responsible for agricultural 
policy. The Ministry includes several divisions which deal with all aspects of agriculture (as well as 
forestry and fishing), including trade policy and trade negotiations relating to agricultural products, administering tariff quotas, statistics, domestic market supervision, agricultural insurance, and 
SPS and TBT measures relating to agriculture, and overseeing and promoting research and 
development undertaken under the Agriculture, Forestry and Fisheries Research Council.
7  
4.10.  In 2013, the Government established the Headquarters on Creating Dynamism through 
Agriculture, Forestry and Fishery Industries and Local Communities which is chaired by the Prime 
Minister and includes government Ministers. In December 2013, the Headquarters approved the Plan to Create Dynamism through Agriculture, Forestry and Fisheries and Local Communities. 
4.11.  Agricultural policy is set out in the Food, Agriculture and Rural Areas Basic Plan which is 
reviewed roughly every five years. The review of the current Plan started in December 2013 and 
sets out the objectives of doubling incomes in agriculture and rural areas over the next ten years 
                                               
7 MAFF online information. Viewed at: http://www.maff.go.jp/ j/policy/index.html  [December 2014] 
(Japanese). WT/TPR/S/310/Rev.1 • Japan 
 
- 71 - 
 
  by increasing demand (both domestic and in export markets), improving value chains, reducing 
costs, promoting structural reform and improving productivity.8 
4.12.  Current policy is based on the current Basic Plan for Food, Agriculture, and Rural Areas 
of March 2010 and set out in detail in the Plan to  Create Dynamism through Agriculture, Forestry 
and Fishery Industries and Local Communities. On e of the main features of the plans is the 
concept of "Sixth Industrialization" which aims to improve vertical integration of agriculture from production and processing to retail, including related services.
9 
4.13.  Agricultural policy continues to emphasise self-sufficiency, and the Basic Plan sets 
self-sufficiency targets for FY2020 of 50% on a calo rie basis and 70% on a production value basis. 
The Action Plan also emphasises the importance of protecting infrastructure from natural disasters and nuclear accidents, and sets out several objectives to improve the viability of the agricultural 
sector and productivity including: 
• Using increased farmer retirement due to the large proportion of farmers over 65 as an 
opportunity to increase the size of farms by encouraging land transfers to younger core 
farmers, promoting community-based farming co-operatives, and taking measures to 
reduce fragmentation; 
• Enhancing the role of agricultural co-operatives in supplying inputs at lower prices and 
increasing purchases from farms and agricultural committees to resolve issues related 
to unused farmland;  
• Attracting younger people into agriculture through support, encouragement to set up 
farm businesses, and education and training; 
• Improving value added through higher quality production, and closer links to processers 
and consumers; 
• Rebuilding exports after the 2011 earthquake, tsunami, and nuclear power plant 
accident as well as promotion abroad and introducing a system for protecting 
geographical indications; and 
• Providing a social safety-net for agricultural producers. 
4.14.  There are many laws affecting farming generally and specific types of farming. Some of the 
principal laws include: 
• The Food, Agriculture and Rural Areas Basic Act of 1999, last amended in 2009, which 
obliges the Government to establish a basic plan for food, agriculture, and rural areas 
setting out national policies and objectives; 
• The Agricultural Co-operatives Act of 1947, last amended in 2004, which provides 
exemptions from competition laws for agricultural co-operatives and sets out the 
services they may provide to their members. These services include supplying farm 
inputs, purchasing outputs, insurance, welfare, lending and savings, educational facilities, and a range of other activities; 
• The Agricultural Land Act of 1951, last amended in 2009, which states that farm land 
cannot be sold or leased unless the local agricultural committee approves, nor can it be diverted to other uses without the approval of the governor of the prefecture. The 2009 amendment aims to facilitate the efficient use of land by allowing companies to lease 
                                               
8 Statement by the Minister of Agriculture, Forestry and Food of 10 December 2013, MAFF online 
information. Viewed at: http://www.maff.go.jp/j/keikak u/k_aratana/pdf/daijindanwa.pdf  [December 2014] 
(Japanese). 
9 The term "sixth industry" is deri ved by multiplying the industrial se ctors as follows. First (primary) × 
second (secondary) × third (tertiary) to come up with th e "sixth industry". The sixt h industry is expected to 
synergistically create new added-value through effective use of agricultural, forestry  and fishery products, as 
well as land, water and other resources in farming, mo untain and fishing villages, by integrating production, 
processing and distribution activities (MAFF (2011b)). WT/TPR/S/310/Rev.1 • Japan 
 
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  farmland. In the first five years following the amendment, 1,576 firms entered 
agriculture; and 
• The Act on Dairy and Beef Cattle Production  Promotion of 1954, last amended in 2011, 
which obliges the Government to establish as basic policy the modernization of dairy 
and beef cattle production. 
4.15.  Agricultural policy in Japan uses a comprehensive set of policy measures which result in a 
relatively high level of protection and support to producers for most products, with the exception 
of export subsidies which Japan does not have the right to use under its WTO commitments.  
4.16.  Programmes to encourage production limitation applies to rice which provide support 
through direct payments based on the amount produced within quotas and include a diversion programme for rice which is intended to encourage farmers to switch land from rice production to 
other crops. The Japan Dairy Council also administers voluntary production restriction programmes 
for milk. Farmers are not obliged to participate in these programmes, but most do so. Producer-price stabilization policies apply to beef  calves, pork, fruits, vegetables and some other 
products which partially or fully compensate for differences between sales and target prices or 
historical average prices. In addition, the gove rnment subsidizes the Agricultural Insurance 
Scheme and provides reinsurance to local insurance funds. 
4.1.2.2  Trade policies 
4.17.  In general, tariffs on agricultural products  (WTO definition), with an average of 14.9%, are 
higher than tariffs on other products, with an average of 3.7%. Furthermore, the standard deviation of 26.5 for tariffs on agricultural products indicates that tariffs vary considerably among 
agricultural products with over one-quarter duty free and a maximum tariff ( ad valorem  
equivalent) of nearly 300%. In addition, 17. 4% of agricultural tariff lines are non- ad valorem 
(section 3.1.4.1). 
4.18.  Japan reserved the right to use the special agricultural safeguard (SSG) on 121 tariff lines. 
During the three years FY2011 to FY2013, Japan has applied either the volume or price-based SSG a number of times to out-of-quota imports of a vari ety of products (Table A4.1). These tariff lines 
include food preparations the prices of which woul d be expected to vary from one consignment to 
another more than prices for basic commodities. Therefore, it is not surprising to see the price-based SSG used several times a year  on some of these tariff lines.  
4.19.  In its most recent notification on imports under tariff quotas (for FY2012) to the WTO 
Committee on Agriculture, Japan has 18 tariff quotas covering 186 tariff lines at the 9 digit level.
10 
Fill rates for each quota have been fairly consistent over the past few years but vary considerably from one quota to another. For example, the fill rates for "Other dairy products for general use", 
"barley and its processed products", "wheat … and its processed products", "evaporated milk" and 
some others were over 90% for each year from FY2007 to FY2012 but fill rates for other quotas, such as "skimmed milk", "prepared whey (for infa nt formula)", "butter and butter oil", and some 
others were consistently below 40%. 
4.20.  The method of administering the quotas va ries from one quota to another, although the 
competent authority for all but one quota is MAFF (the exception being "designated dairy products for general use" where the competent authority is the Agriculture Livestock Industries Corporation, 
a state-trading enterprise). One quota ("prepared edible fat") is partially allocated to a supplying 
country. Under all methods, the applicant for an allocation must meet criteria such as end-use requirements, a record as an importer, planned usage, etc.
11  
4.21.  Under the simultaneous buy and sell (SBS) systems for rice and wheat, an importer and a 
domestic user make a joint bid to MAFF specifying the government purchase price from the 
                                               
10 WTO document G/AG/N/JPN/196, 1 October 2014. 
11 WTO documents G/AG/N/JPN/1, 22 May 1995; JPN/1/ADD.1, 27 June 2001; JPN/8, 28 June 1996; 
JPN/8/CORR.1, 17 October 1997; JPN/8/ADD.1, 27 June 2001; JPN/23, 17 October 1997; JPN/23/ADD.1, 14 
September 2000; JPN/23/ADD.2, 27 June 2001; JPN/42, 22 September 1999; JPN/57, 14 September 2000; 
JPN/57/ADD.1, 27 June 2001; JPN/81, 6 June 2003; JPN/91, 10 March 2004; JPN/100, 13 September 2004; JPN/133, 31 March 2008; and JPN/143, 26 February 2009. WT/TPR/S/310/Rev.1 • Japan 
 
- 73 - 
 
  importer and government sale price on the domestic Japanese market. MAFF collects the 
difference in the prices (Table 4.6).  
Table 4.6 Imports under the SBS system, FY2009-11 
('000 tonnes) 
 2009 2010 2011
Rice 100 40 100 
Wheat 480 430 830 
Source: Japanese authorities. 
4.22.  Japan did not reserve the right to use export subsidies and has notified the WTO Committee 
on Agriculture that it has not used any.12 Export insurance from NEXI are available for agricultural 
products in the same way as exports of other goods. 
4.23.  According to the authorities, Japan make s an annual commitment of food assistance and 
provides funds for purchasing products. Recipien t countries purchased 168,296 tonnes of rice and 
231,443 tonnes of other products using these funds in 2009. 
4.24.  In August 2013, MAFF developed the Strategy  to Promote Agriculture, Forestry, Fisheries 
Products and Foods. The Strategy sets the export target of major products and countries of 
¥1 trillion. In June 2014, the Cabinet adopted the Japan Revitalization Strategy, which includes this export promotion strategy.
13 
4.1.2.3  Domestic support 
4.25.  Domestic support policies for agriculture in Japan have been evolving for some time 
although there has been little change in market access measures (tariffs, the special safeguard, 
and tariff quotas) since the implementation of the results of the Uruguay Round. The relatively 
high tariffs have helped to maintain domestic prices higher than world prices. Most other forms of market price support have been removed and administered prices now apply to a limited number of products (pig meat, beef, and calves). Participation in other programmes intended to contain 
production of rice and milk is not obligatory, but little production in excess of limits takes place 
(sections 4.1.2.3.2 and 4.1.2.3.7).  
4.1.2.3.1  General support programmes 
4.26.  Domestic support programmes within Japan apply at both the general and product levels. At 
the general level support is provided for infrastructure, through extension services, and for insurance/disaster relief programmes as well as payments for conversion from rice production. 
4.27.  Several new programmes have been introduc ed to encourage structural reform, including: 
• Municipalities are required to prepare master plans for agriculture to identify core 
farmers and an optimal pattern of la nd use for the municipal district; 
• Legislation has been passed to establish a regional government-supported institution to 
promote farmland consolidation in each prefecture with a total budget of ¥70.5 billion. 
The prefectural institutions rent farmland, improve infrastructure if necessary, and lease the land to core farmers; 
• Setting-up of Young Farmers Payments provid e income support of ¥1.5 million per year 
and up to two years training. The income support payments may be for up to five years from the start of operating as a farmer. An eligible farmer must be identified in the 
municipality's plan, be under 45, have an a nnual income of less than ¥2.5 million, and 
                                               
12 For examples see WTO documents G/AG/N/JPN/194, 25 April 2014; JPN/185, 25 April 2013; JPN/176, 
1 May 2012; and JPN/164, 3 May 2011. 
13 Online information. Viewed at: http://www.kantei.go.jp/jp/singi/keizaisaisei/pdf/honbunEN.pdf 
[October 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
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  have a viable production plan. The production plan is reviewed for viability by the 
prefecture or municipality. 
4.28.  In addition, farmers that increase farm si ze are eligible to receive payments of ¥20,000 for 
each additional 0.1 ha, and payments of up to  ¥700,000 per household are available for leasing 
land to farmers.14 
4.29.  The Agricultural Disaster Compensation Act provides the legal basis for the Agricultural 
Disaster Compensation Programme to provide compensation from losses caused by disasters, 
diseases, and other events. The current Agricultural Insurance Scheme is supported by the 
Government and usually operated by the Agricultural Mutual Relief Associations run by farmers. As a general rule, the Government contributes about 50% of the premiums. Insurance is mandatory for rice, wheat, and barley, and optional for livestoc k, fruit production, field crops, silk worms, and 
greenhouses.
15 
4.30.  Starting in 2011, a new scheme, Direct Payment for Environmentally Friendly Farming, was 
implemented which replaced an earlier scheme of the same name which had operated since 2007. 
The new scheme extended the objectives and requ irements for qualifying for the payments to 
address global warming and biodiversity. In FY2013 , a total area of 51,114 ha received an average 
payment of ¥60,295 per ha. In FY2012, 216,000 farmers were certified as eco-farmers and 
qualified for Direct Payments for Environmentally Friendly Farming.16 
4.31.  In FY2000, a direct payment programme for farmers in hilly and mountainous areas was 
introduced to encourage farmers to continue production, and address environmental concerns relating to abandonment such as flooding, erosion, and stability of hillsides. Payment rates depend 
on the slope of the land and the type of produc tion from ¥21,000 per 0.1 ha for paddy fields in 
high inclination areas to ¥1,500 per 0.1 ha for pasture. In FY2008, the scheme covered 665,000 ha and 641,751 participants.
17, 18 
4.32.  In FY2011, the scheme for direct payments to farmers in hilly and mountainous areas was 
extended to cover flat farming areas on isolated islands and other disadvantaged areas.  
4.1.2.3.2  Rice  
4.33.  Under the production adjustment progra mme, production quotas are assigned to each 
prefecture and each individual farmer based on MAFF estimates of supply and demand. The 
production quotas can be met with less land than had been used for rice cultivation in the past, that is, some land may be diverted to other uses or taken out of production entirely. Although 
subsidies are available for land diverted to othe r crops, around 39% of land taken out of rice 
production is left idle.
19  
4.34.  Following a 2010 pilot programme for rice, in 2011 the Direct Payments for Rice programme 
was implemented for farmers that participated in the production adjustment programme. There 
are two components to the programme: the first is fixed at ¥15,000 per 0.1 ha planted with rice; the second is triggered whenever the producer price falls below the average for the three years 
2006 to 2008.  
4.35.  In December 2013, the Government determined a plan to phase out production quotas for 
rice by 2018 with the objective of giving farmers greater production flexibility. As part of the 
reform, the first component of the Direct Payments for Rice programme (¥15,000 per 0.1 ha) 
would be halved in 2014 and abolished in the 2018 crop year while the second component was 
abolished in the 2014 crop year. 
                                               
14 OECD (2014a), p. 132. 
15 MAFF online information. Viewed at: http://www.maff.go.jp/j/ke iei/hoken/saigai_hosyo/  [June 2014] 
(Japanese). 
16 MAFF (2013a). 
17 Sakuyama T. (2006), Vol. 3, No. 1, pp. 27-57. 
18 Saika Y. (2010). 
19 OECD (2013b). WT/TPR/S/310/Rev.1 • Japan 
 
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  4.1.2.3.3  Other cereals, suga r beet and starch potatoes 
4.36.  Under the Act on Farm Income Stabilization, core farmers producing wheat, barley, and 
soya beans, sugar beet, and starch potatoes are eligible for payments based on area planted in the previous year and payments based on the quantity  and quality of annual output (Table 4.7). They 
are also eligible for payments which compensate for up to 90% of any loss of income compared 
with the average annual income for the preceding five years, excluding the highest and lowest years. The income-related payments are provided from a fund to which the Government 
contributes 75% and participating producers 25%. 
Table 4.7 Payment rates for other cereal s, sugar beet, and starch potatoes 
(¥ per unit) 
Product Payment rate Per unit 
Payments based on outputa   
Wheat   6,320  60 kg 
Two-row barley   5,130  50 kg 
Six-row barley   5,490  50 kg 
Naked barley   7,380  60 kg 
Soy beans   11,660  60 kg 
Sugar beet   7,260  tonne 
Starch potatoes   12,840  tonne 
Payments based on area 20,000 10 are 
a Actual allowances for payments based on output are determined by deducting payments based on 
area from payments based on output. 
Source: Japanese authorities. 
4.1.2.3.4  Fruits and vegetables 
4.37.  Under the Basic Policy for Fruit Industry Promotion of 2010, which replaced the 2005 policy, 
a new insurance programme for production losses was introduced. The objectives of the Basic Policy include the emphasis on increasing domestic production, consumption, and processing of 
domestically produced fruits. Under the Basic Policy, payments are made to support the planned 
fruits production programme, and processing of fresh fruits when the market price has declined or is foreseen to decline. For vegetables, farmer  price support payments are made based on the 
quantity of production of specific vegetables under contract, calculated as the difference between 
90% of the average of past six years and the av erage of annual market prices. The share of 
national and sub-national payments depend on the vegetable or fruit.
20 
4.38.  Targeted farmers are listed in a Fruits Production Restructuring Plan for each production 
area, based on the Plan of Fruit Industry Promot ion of each prefecture. These farmers are also 
eligible for assistance to convert production to more valuable fruits (defined as profitable fruits or highly valued varieties), for on-farm improvements, and for a four-year period after replanting 
when incomes decline while the new fruit plants mature. Between 2009 and 2012, 3,083 ha under 
fruit production were converted to more valuable varieties with the objective being to increase this to 7,641 ha in 2014. 
4.1.2.3.5  Tobacco 
4.39.  The state trading enterprise, Japan Tobacco, which is part-owned by the Government 
(section 3.3.3), is required, under the Tobacco Business Act to enter into purchase contracts with tobacco growers. These contracts specify the area to be planted, the specific varieties of leaf 
tobacco and the prices by variety and grade. In deciding the total area and price for these 
contracts, Japan Tobacco is required to respec t the opinions of the Leaf Tobacco Deliberative 
Council which includes representatives of tobacco growers and academics. Japan Tobacco has 
noted that: "production costs for domestically-grown leaf tobacco is higher than those of 
foreign-grown leaf tobacco to the extent that the purchasing price for the former (before re-
drying) is approximately four times that of the latter (after re-drying)".
21 It was reported that, for 
2015, the total area would be set at 8,662 ha (down 2.7% on 2014) and grower prices set at 
                                               
20 OECD (2013a), p. 3. 
21 Japan Tobacco Inc. (2014) , p. 151. WT/TPR/S/310/Rev.1 • Japan 
 
- 76 - 
 
  ¥1,920.1 per kg.22 In 2013, the unit import price for unmanufactured tobacco (HS2002 
heading 2401) was US$6.77 per kg23 (about ¥661 per kg). 
4.40.  Government policy also affects sales of the processed products. Although tobacco products 
are subject to excise duties, some brands, all ow ned by Japan Tobacco, are subject to lower rates 
(section 3.3.1.6). Furthermore, importers, wholesalers, and retailers of cigarettes are required to 
register with the Minister of Finance who must approve final retail prices.24 
4.1.2.3.6  Livestock products 
4.41.  Most livestock in Japan, apart from in Hokkaido, are reared on feed. Grains imported as raw 
material for feedstuffs qualify for a reduced tariff subject to measures to ensure they are not diverted for human consumption. These measures include approval by the Government for import by the processing plants, penalties for misuse of  feed grains, and specified processing methods. 
4.42.  Administered prices apply to pig meat, beef, and calves (Table 4.8). For calves, ALIC 
implements a deficiency payment system which pays calf producers the difference between the 
guaranteed price and the actual average price. Shou ld prices fall below the target rationalization 
price the difference between the local price and th e target rationalization price is paid by a 
combination of ALIC, prefectural governments, and contributions from producers. 
Table 4.8 Administered prices for calves, beef, and pig meat, FY2014 
(¥) 
Product Guaranteed price Target rationalization price 
Japanese black calves 329,000 per calf 275,000 
Japanese brown calves 300,000 per calf 253,000 
Dairy breeds 128,000 per calf 87,000 
Cross breeds 195,000 per calf 143,000 
 Upper stabilization price Standard stabilization price 
Beef 1,105,000 per tonne 850,000 
Pig meat 570,000 per tonne 425,000 
Source: Japanese authorities. 
4.43.  For beef producers, when prices fall below the standard stabilization price ALIC or other 
beef-related organizations may purchase and store beef which may be released whenever prices 
rise above the upper stabilization price. A similar scheme is used for pig meat. 
4.44.  Under the Price Stabilization Fund for Eggs payments are made to egg producers under 
contract, calculated as 90% of the difference between the baseline price (¥187/kg in FY2014) and 
the average trading price, multiplied  by the quantity of eggs sold.25 
4.45.  The Feed Price Stabilization Programme operates to help to even out fluctuations in feed 
prices. Farmers pay ¥500 per tonne of concentrated  feed into the fund operated by the milling 
industry. The fund is supplemented by the Government and millers.26 When feed prices surge the 
millers can receive payments from the fund to limit price increases, such as in late 2012 and into 2013.
27 
4.1.2.3.7  Dairy 
4.46.  In addition to the administered prices for dairy calves going for beef production (Table 4.8), 
dairy producers also benefit from a number of support programmes.  
                                               
22 Tobacco Reporter (2015). 
23 UNSD Comtrade online database. Viewed at: http://comtrade.un.org/data/  [December 2014]. For 
2013 imports were 55,464,244 kg and value of US$375,582,745. 
24 Japan Tobacco Inc. (2014), p. 151. 
25 OECD (2013a), p. 2. 
26 USDA (2010). 
27 USDA (2014). WT/TPR/S/310/Rev.1 • Japan 
 
- 77 - 
 
  4.47.  The Japan Dairy Council (JDC)28 operates a voluntary supply control system for liquid milk 
and a separate quota system for milk for proc essing. Compliance with the planned production 
system is voluntary, but only 5% of dairy producers operate outside the system. The annual production allowances determined by the JDC are based on its estimates of demand and are 
allocated to nine regional blocs each of which then sets production allowances for the cooperatives 
and dairy farmers within each bloc. To cushion producers against sudden price fluctuations, producers and the Government contribute to the farm business stabilization fund (at rates which 
vary from one bloc to another but at a ratio of 1:3 respectively). The fund compensates producers 
of milk for processing whenever prices fall below the average for the previous three years.
29 For 
milk going for cheese production producers are eligible for a subsidy of ¥15.1 per kg of milk (FY2013).  
4.1.2.4  Support levels 
4.1.2.4.1  WTO notifications 4.48.  The most recent notification from Japan to the WTO Committee on Agriculture covers 
FY2010 to FY2012. According to the notifications, about two-thirds of all support for agriculture 
(support notified under the Green Box, Blue Box, and Amber Box (including de minimis ) is in the 
Green Box and less than one-third under the Amber Box (including de minimis ) (Chart 4.2).  
Chart 4.2 Support notified to the WT O Committee on Agriculture, FY2003-12 
(¥ billion) 
05001,0001,5002,0002,500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012de minimis Current Total AMS Blue Box Green Box
 
Source: WTO notifications. 
Green Box 
4.49.  Total support notified under the Green Box has fluctuated considerably over the past 
few years from ¥1,522.9 billion in FY2010 to ¥2,094.2 billion in 2004, with a sharp increase in FY2011 attributed to reconstruction and rehabi litation following the earthquake. In FY2012, 
infrastructural services along with disaster rehabilitation made up nearly half of the total spending 
                                               
28 The JDC was established in August 1962 at the behest of the Ministry of Agriculture, Forestry and 
Fisheries. In 1966, with the enactment of the Deficiency Payment Law, the Japan Dairy Council became a public service corporation. It is comp osed of prefectural-level associations , and overseen by national advisory 
organizations such as the Central Unio n of Agricultural Cooperatives and five other national federations of 
agricultural associations (JDC online information. Viewed at: http://www.dairy.co.jp/eng/eng15.html  
[December 2014]). 
29 JDC online information. Viewed at: http://www.dairy.co.jp/eng/eng08.html  [December 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
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  while direct payments under various headings (rice conversion programme and others under 
environmental programmes, payments on historical bases, and regional assistance) accounted for about a sixth, while expenses of government officials and official agricultural statistics accounted for another tenth of the total (Chart 4.3).  
Chart 4.3 Green Box support, FY2003-12 
(¥ billion) 
05001,0001,5002,0002,500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Other
Extension, advisory, management
Loans, insurance
Statistics and government expenses
Direct payments (rice conversion, historical
basis, regional assistance)
Infrastructure, disaster rehabilitation
 
Source: WTO notifications. 
Blue Box 
4.50.  All spending notified under the Blue Box is for the rice income stabilisation programme. 
Changes in spending reflect changes in policy with a fall in FY2007-09 followed by sharp increase 
in FY2010 which then levelled off at over ¥150 billion for FY2011 and FY2012 (Chart 4.2). 
Amber Box 4.51.  After several years of decline, the trend for the total support in the Amber Box since 2007 
(including de minimis ) has been upwards. The lowest point in 2007 corresponded to the 
elimination of reference prices for several crops. Since then support for beef and veal, and pig 
meat plus non-product-specific support under the crop income stabilization payments have increased (Chart 4.4). 
4.1.2.4.2  OECD indicators 
4.52.  The OECD has been publishing reviews of  agricultural policies in Japan, other OECD 
countries, and some other economies for several years. In these publications, the value of 
transfers to agricultural producers is measured using the Producer Support Estimate (PSE) and 
associated indicators. The methodology for calculating these indicators is different from that used to calculate the Aggregate Measure of Support (AMS), and the two sets of data are neither 
compatible nor comparable. The total PSE is "The annual monetary value of gross transfers from 
consumers and taxpayers to agricultural producers, measured at the farm gate level, arising from 
policy measures that support agriculture, regardless of their nature, objectives or impacts on farm production or income. It includes market price support, budgetary payments and budget revenue 
foregone, i.e. gross transfers from consumers and taxpayers to agricultural producers arising from 
policy measures based on: current outp ut, input use, area planted/animal 
numbers/receipts/incomes (current, non-current), and non-commodity criteria." Thus, the PSE 
includes estimates for the value of transfers provided by market access measures, such as tariffs WT/TPR/S/310/Rev.1 • Japan 
 
- 79 - 
 
  and tariff quotas, as well as input subsidies, direct payments to producers that are coupled to 
prices or production, and direct payments decoupled from prices and production.30 
Chart 4.4 Amber Box support, FY2003-12 
(¥ billion) 
0100200300400500600700800900
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Non-product specific
Other product specific
 Wheat
 Beef and veal
Pig meat
 
Source: WTO notifications. 
4.53.  Although both PSE and the Total Support Es timate (TSE) were lower in 2013 than their peak 
level in the mid-1990s they are still high relative  to other OECD countries. Furthermore, market 
access measures, such as high tariffs, and production restraints on some products mean farm prices are more than twice border prices as measured by the Producer Nominal Protection 
Coefficient (Producer NPC). The hi gh tariffs are also the main co mponent of market price support 
which is, in turn, the main component of the PSE (Chart 4.5). 
4.54.  Single commodity transfers (SCTs) make up most of the support provided to agriculture and 
the rates of support vary considerably from on e product to another but overall represent more 
than half of gross farm receipts (which includes the value of farm production plus non-market-
price support payments). For most commodities, the SCT has increased over the past six years (Table 4.9). 
4.55.  Despite changes in agricultural programmes over the past few years, support and protection 
given to agriculture in Japan is high compared to other countries and it is provided by a comprehensive set of policies ranging from tariffs and other forms of market price support, to 
deficiency payments, payments related to production, and payments not linked to prices or 
production as well as general support such as re search, and extension services. However, market 
price support is the main component and it, along with other transfers based on output and inputs, 
is categorized as one of the potentially most production and trade-distorting forms of support.
31  
                                               
30 OECD (2014a), p. 49.  
31 OECD (2014a), p. 13. WT/TPR/S/310/Rev.1 • Japan 
 
- 80 - 
 
  Chart 4.5 Value of production and support to agriculture, 2001-13 
(¥ billion) 
01000200030004000500060007000800090001000011000
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013TSE total PSE total MPS total Value of production
 
Source: OECD Producer and Consum er Support Estimates database. 
Table 4.9 Total producer support estimate and single commodity transfer values for 
selected commodities, 2004-13 
 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 
Producer support estimate  
¥ billion  5,196   4,888   4,580  4,136  4,407  4,332  4,973  4,813   5,233   5,265 
% gross farm receipts 56    54  52 47 48 49 55 51  55  56 
           
Single commodity transfers  
Total  4,881   4,564   4,269  3,686  3,921  3,794  4,361  4,233   4,650   4,642 
           
Rice  
SCT (¥ billion)  1,701   1,625   1,420  1,293  1,248  1,138  1,389  1,439   1,595   1,589 
% of gross receipts 80  82  76 71 69 63 73 75  78  75 
Wheat  
SCT (¥ billion)  105   104   100 27 27 28 28 37  37  37 
% of gross receipts 83  83  79 43 43 42 48 52  44  48 
Soya beans  
SCT (¥ billion) 28  26  26 8 6 7 7 25  24  23 
% of gross receipts 51  50  45 15 13 16 19 47  50  46 
Milk  
SCT (¥ billion)  382   366   341  202  329  387  359  362   443   435 
% of gross receipts 56  57  54 32 49 55 54 54  65  64 
Beef  
SCT (¥ billion)  132   131   127  130  132  135  150  179   175   248 
% of gross receipts 30  29  28 28 29 29 32 36  34  43 
Pork  
SCT (¥ billion)  303   294   293  315  388  353  342  342   361   301 
% of gross receipts 61  62  62 63 70 72 67 66  68  58 
Poultry meat  
SCT (¥ billion) 20  20  21 22 23 23 28 27  28  27 
% of gross receipts 10  11  10 10 10   10 10 10  10  10 
Eggs  
SCT (¥ billion) 56  66  60  60  67  60  63  68  64  67  WT/TPR/S/310/Rev.1 • Japan 
 
- 81 - 
 
   2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 
% of gross receipts 15  15  15  15  15  15  14  15  15  15  
Selected fruits and vegetablesa  
SCT (¥ billion)  471   403   430   357   384   375   512   431   426   435  
% of gross receipts 42  37  39  32  35  35  45  40  39  39  
a Selected fruits and vegetables are apples, Chinese cabbage, cucumb er, grapes, mandarins, pears, 
spinach, strawberries , and Welsh onions. 
Source: OECD Producer and Consumer Su pport Estimates database. Viewed at: 
http://www.oecd.org/tad/agricult ural-policies/producerandconsume rsupportestimate sdatabase.htm  
[October 2014], and WTO Secretariat estimates based on OECD data for selected fruits and 
vegetables. 
4.2  Fisheries 
4.2.1  Features 
4.56.  According to the Japan Fisheries Agency in MAFF, Japan has 4.47 million km2 of territorial 
waters (12 nm) plus the Exclusive Economic Zone  (EEZ) (200 nm) which would give it the sixth 
largest EEZ in the world.32 This area includes some of the richest and most varied fishing grounds 
in the world. In 2012, Japan was the seventh bi ggest producer of capture fisheries and the 
eleventh of aquaculture in the world with a tota l catch of 4.8 million tonnes in 2011, valued at 
¥1,421 billion.33 Total production has been declining for some time for several reasons including 
declines in some stocks34 – such as the significant decline of Pacific sardine catch in Japan's EEZ – 
and reduction of the far-seas fleets and limited access to the EEZs of other countries. Furthermore, 
the 2011 earthquake and tsunami severely damaged the fisheries sector and the subsequent accident at the Fukushima nuclear power plants raised concerns about food safety of fisheries' 
products. Total fisheries-related damage was estimated at ¥1.26 trillion
35 and the prefectures 
worst affected accounted for 21% of total marine fisheries and aquaculture production in 2011.36 
4.57.  Japan is one of the biggest consumers of fish and seafood in the world with one of the 
highest consumption levels at 54 kg per capita in 2011, although this is considerably lower than 
the peak of over 70 kg per capita per year in the early 1990s.37 Despite the decline in 
consumption, production has declined further and Japan is now a major importer of fish and seafood products (Tables 4.10 and 4.11).  
4.58.  Although Japan is one of the biggest pr oducers and consumers of fishery products, the 
sector is small compared to the rest of the econ omy: in 2012 the contribution of fisheries to GDP 
was less than 0.2% and its contribution to employment was less than 0.3% (Table 4.10). 
However, it remains economically important for many coastal communities and socially and 
culturally for the whole country. 
Table 4.10 Fish in the economy, 2005-13 
 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP total (¥ billion) 503,903 506,687 512,975 501,209 471,139 482,384 471,311 473,784 478,075
GDP fisheries (¥ billion) 831 806 850 789 771 735 726 752 ..
Employment total 
(million) 63.56 63.89 64.27 64.09 63.14 62.98 62.89 62.70 53.11
Employment fisheries 
(million) 0.23 0.22 0.21 0.23 0.20 0.18 0.18 0.16 0.15
.. Not available. 
Source: Statistical Year Books and authorities. 
                                               
32 MAFF (2013b) , p. 4. 
33 MIC (2014) , Table 7-47. 
34 FAO (2011). 
35 MAFF online information, The damages cause by the Great East Japan Earthquake and actions taken 
by Ministry of Agriculture, Forestry and Fisheries.  Viewed at: 
http://www.maff.go.jp/e/quake/press_since_120605.html  [December 2014]. 
36 FAO (2012), p. 20. 
37 FAOStat, Food Balance Sheets online database. Viewed at: http://faostat3.fao.org/faostat-
gateway/go/to/download/FB/*/E  [December 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
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  Table 4.11 Fisheries production, 2004-12 
 Total Marine Inland Whaling
  Total Fisheries Culture Total Fisheries Culture 
   Total Pelagic Offshore Coastal  
 (000 tonnes) (Number)
2004 5,775 5,670 4,455 535 2,406 1,514 1,215 105 60 45 111
2005 5,765  5,669  4,457  548  2,444 1,465 1,212 96 54  42  121 
2006 5,735 5,652 4,470 518 2,500 1,451 1,183 83 42 41 87
2007 5,720 5,639 4,397 506 2,604 1,287 1,242 81 39 42 103
2008 5,592 5,520 4,373 474 2,581 1,319 1,146 73 33 40 84
2009 5,432  5,349  4,147  443  2,411 1,293 1,202 83 42  41  89 
2010 5,313 5,233 4,122 480 2,356 1,286 1,111 79 40 39 76
2011 4,766 4,693 3,824 431 2,264 1,129 869 73 34 39 61
2012 4,864 4,798 3,759 458 2,209 1,090 1,040 67 33 34 87
(¥ billion)
2004 1,603 1,500 1,066 169 396 500 434 103 51 52 0a 
2005 1,600  1,498  1,059  162 388 509 439 102 50  52  0 
2006 1,606 1,529 1,079 154 400 525 450 78 24 54 0
2007 1,653 1,576 1,127 .. .. .. 449 77 23 55 0
2008 1,628 1,543 1,125 .. .. .. 418 85 24 61 0
2009 1,470  1,381  972  .. .. .. 409 89 26  62  0 
2010 1,483  1,400  972  .. .. .. 428 83 23  60  0 
2011 1,419 1,327 940 .. .. .. 387 92 20 72 0
2012 1,418 1,329 916 .. .. .. 413 89 18 71 0
.. Not available. 
a Values for fisheries production are in billion yen but, according to the authorities, the value of whaling 
has been ¥200-400 million in recent years which rounding to the nearest billion gives zero. 
Source: Statistical Japan Yearbooks and authorities. 
4.59.  Marine fisheries account for most production in both value and volume terms. Marine 
aquaculture contributed around one-fifth of the marine production in volume terms in 2010 but 
suffered from the 2011 earthquake with total prod uction reduced by nearly 22%. Inland fisheries 
are small compared to total production and catch has declined considerably over the past decade. 
However, even though the volume of production of inland aquaculture has also declined, its value 
has increased as production has focused on higher value products (Table 4.11).  
4.60.  For a number of reasons, FAO and OECD statistics differ between each other and with 
national data, although all three sources indicate similar trends. In terms of species landed in 
domestic ports, Japan's fisheries' production includes a wide variety, with skipjack and other species of tuna, pelagics (mackerel, herring, etc.), and shellfish and molluscs representing just over 20% each in value terms.  
4.61.  According to OECD data, the decline in the catch value (2.8% annual average 
decline 2005-11) is similar to the decline in the quantity caught (2.7% annual average decline 2005-12) (Table 4.12)
38 indicating that unit prices have not changed much over the past 
few years.  
4.62.  OECD data do not include figures for whaling. According to FAO data, there has also been a 
decline in the quantity of aquatic mammals caught (Table 4.13). 
4.63.  The structure of the fishing fleet has foll owed the trend in capture, as has the number of 
people engaged in fisheries. However, the fishing fleet is still dominated by small vessels of less than 5 tonnes and the vast majority of the 89, 000 fishing entities are individual management 
entities (Table 4.14). Of these management entities, approximately half are run by full-time 
fishermen, although most of the part-time fisherme n earn most of their income from fisheries.  
                                               
38 OECD (2013c). WTO Secretariat calculations. WT/TPR/S/310/Rev.1 • Japan 
 
- 83 - 
 
  Table 4.12 Fisheries landings in Japan, 2005-12 
('000 tonnes, ¥ billion) 
 Total landings Tuna Pellagics Shellfish, molluscs
 ('000 tonne) (¥ bn) ('000 tonne) (¥ bn) ('000 tonne) (¥ bn) ('000 tonne) (¥ bn)
2005 4,511  1,109  657 226 1,653 190 801  253 
2006 4,511  1,103  597 225 1,745 196 717  231 
2007 4,436  1,149  636 256 1,631 209 758  231 
2008 4,416  1,149  572 256 1,691 221 762  211 
2009 4,200  998  517 210 1,591 190 769  188 
2010 4,172  994  558 207 1,560 204 740  190 
2011 3,859  959  500 196 1,502 194 733  200 
2012 3,729  .. 522 .. 1,472 .. 654  ..
.. Not available. 
Source: OECD (2013), OECD Review of Fisheries: Country Statistics 2013 , OECD Publishi ng. Viewed at: 
http://dx.doi.org/10.1787/rev_fish_stat_en-2013-en . 
Table 4.13 Aquatic mammals taken by Japan, 2005-12 
Aquatic mammals  2005 2006 2007 2008 2009 2010 2011 2012
Blue-whales, fin-whales (numbe r) 943 1,348 1,020 1,006 1,114 909  569  703 
Miscellaneous aquatic mammals (tonne) 1,652 1,599 1,573 1,154 1,404 932  562  500 
Sperm-whales, pilot-whales (numbe r) 16,140 14,026 13,153 9,155 11,210 6,580  3,284  1,775 
Source: FAO Fisheries' statistics database. Viewed at: http://www.fao.org/fishery/st atistics/global-capture-
production/query/en  [December 2014]. 
Table 4.14 Structure of fisheries, 2004-12 
 Persons 
engaged 
('000) Registered fishing craft
Total tonnage 
('000 tonnes) <5 tonnes 
(number) 5-10 
tonnes 
(number) 10-30 
tonnes 
(number) 30-100 
tonnes 
(number) 100-200 
tonnes 
(number) Over 
200 tonnes 
(number) 
2004 231 282,430 18,524 10,721 729 611 855 1,304
2005 222 278,056 18,025 10,668 656 582 823 1,269
2006 212 273,593 17,802 10,512 614 559 762 1,226
2007 204 266,625 17,674 10,417 588 551 721 1,195
2008 222 259,987 17,370 10,309 558 529 703 1,168
2009 212 252,902 17,058 10,148 522 498 614 1,112
2010 203 247,629 16,811 10,063 503 477 591 1,087
2011 178 225,500 16,097 9,617 464 437 550 1,019
2012 174 226,926  15,956  9,710 463 433 564  1,017 
Source: Statistical Yearb ooks, and authorities. 
4.64.  According to the authorities, the number of  registered fishing vessels exceeds the number of 
persons engaged in fishing for several reasons: on e person may have severa l vessels for different 
fishing methods, such as one for aquaculture and another for marine capture; the definition of a 
person engaged in fishing is someone over 15 ye ars old and engaged at sea in fishery works for 
more than 30 days per year, while someone who does not meet this definition may have one or more registered vessels; and the number of persons engaged in fishing in 2011 and 2012 does not 
include the three prefectures affected by the Great East Japan Earthquake of 2011. 
4.2.2  Trade 4.65.  Japan is one of the biggest importers of fisher ies' products in the world, with imports of over 
US$15 billion, compared to exports of just under US$2 billion in 2013.
39 Since 2005, imports have 
fluctuated from a low of US$13.2 billion in 2007 to a high of US$18.1 billion in 2012 while following a downward trend for quantities imported (Table 4.15). Exports have followed an upward trend although the value declined in 2011 compar ed to 2010 before increasing to a new maximum 
level of nearly US$2 billion in 2013 (Table 4.16). 
                                               
 39 For the purposes of this section of the Trade Poli cy Report, fish and fisheries products are taken to 
include HS2002 Headings 020840, 03, 051191, 1504, 1603, 1604, 1605, and 230120. WT/TPR/S/310/Rev.1 • Japan 
 
- 84 - 
 
  Table 4.15 Imports of fish products, 2006-13 
(US$ million and '000 tonnes) 
HS2002  2006 2007 2008 2009 2010 2011 2012 2013
Total US$ million  14,030 13,258 14,512 13,355 15,030  17,470  18,096 15,407 
     
030613 - Shrimps & prawns, ... 
frozen '000 tonnes 230 207 197 198 205  205  201 187 
US$ million  1,955 1,742 1,756 1,737 1,943  2,195  2,136 2,167 
030420 - Fish fillets, frozen '000 tonnes 213 198 191 176 194  225  236 224 
US$ million  1,371 1,325 1,533 1,499 1,523  2,080  2,198 1,869 
030490 - Fish meat other than
fillets, frozen '000 tonnes 299 297 273 215 246  259  258 236 
US$ million  693 705 1,051 676 848  908  1,007 777 
160520 - Shrimps & prawns, 
prepd/presvd '000 tonnes 69 67 64 65 70  77  78 72 
US$ million  528 506 528 552 615  775  808 773 
160419 - Prepd/presvd fish ...
other '000 tonnes 119 119 92 93 104  100  96 96 
US$ million  812 784 590 603 809  912  939 737 
030379 - Fish, n.e.s., frozen  '000 tonnes 220 231 247 224 209  203  207 166 
US$ million  580 577 673 663 703  763  782 626 
030799 - Molluscs & invertebrates 
… other '000 tonnes 68 68 65 56 59  74  78 92 
US$ million  372 365 379 355 401  544  632 582 
160590 - Molluscs & 
invertebrates, prepd/presvd … 
other '000 tonnes 109 102 86 89 93  99  92 96 
US$ million  499 451 422 426 484  631  583 533 
030380 - Fish livers & roes, frozen '000 tonnes 55 50 53 46 47  50  54 46 
US$ million  488 440 644 449 401  498  708 490 
030192 - Live eels (anguilla spp.) '000 tonnes 20 21 16 12 15  10  5 5 
US$ million  266 251 336 191 410  431  387 479
Source: UNSD Comtrade. 
Table 4.16 Exports of fish products, 2006-13 
HS2002   2006 2007 2008 2009 2010 2011 2012 2013
Total US$ million 1,414 1,667 1,649 1,592 1,953 1,871 1,823 1,982
      
160590 - Molluscs & invertebrates, 
prepd./presvd … other '000 tonnes 6 7 6 7 7 7 7 8
US$ million 289 358 334 357 494 494 451 461
030799 - Molluscs & invertebrates 
… other '000 tonnes 9 13 29 26 32 40 51 64
US$ million 37 72 89 81 166 233 322 454
030379 - Fish, n.e.s., frozen '000 tonnes 126 135 116 173 160 96 100 127
US$ million 118 135 122 165 168 133 146 151
030374 - Mackerel, frozen, excl. 
fillets '000 tonnes 173 147 123 78 116 96 104 112
US$ million 101 111 132 73 109 108 113 121
030420 - Fish fillets, frozen '000 tonnes 5 6 6 5 5 6 6 7
US$ million 52 67 73 74 85 100 99 90
030319 - Pacific salmon, frozen, 
excl. fillets '000 tonnes 66 57 45 55 64 22 21 32
US$ million 149 109 97 140 202 84 75 83
030343 - Skipjack/stripe-bellied 
bonito, frozen, excl. fillets '000 tonnes 52 54 55 21 59 45 27 41
US$ million 42 68 94 23 80 68 53 79
160420 - Prepared/presvd. fish 
other than whole/in pieces '000 tonnes 10 11 11 8 8 8 8 9
US$ million 64 72 84 75 84 84 83 76
030371 - Sardines, frozen, excl. fillets '000 tonnes 2 4 1 1 2 13 23 55
US$ million 2 3 1 1 2 9 18 42
030341 - Albacore/longfinned 
tunas, frozen, excl. fillets  '000 tonnes 12 32 9 16 7 13 17 19
US$ million 28 61 23 41 17 36 55 42
Source: UNSD Comtrade. 
4.2.3  Policy 
4.66.  Overall responsibility for national fisheries'  policies lies with the Fisheries Agency in MAFF, 
while prefectural governments are responsible for local issues, such as management of local 
fisheries' resources. Regarding important polic y decision-making, the Fisheries Policy Council 
(national level), the Regional Fisheries Coordination Committees (at regional level), and the Sea Area Coordination Committees (at prefectural level) are consulted for opinions depending on the nature of the issue. 
4.67.  The Fisheries Cooperative Associations (FCA) are private cooperative organizations 
established voluntarily by fishermen. The FCAs pr ovide for sales of fish, purchases of equipment 
and inputs, credit and insurance services and give guidance to their members. MAFF or the local 
governments lead and supervise the FCAs as required by law. 
4.68.  The Fisheries Research Agency (FRA), an incorporated administrative agency, was 
established in 2001 as an independent body by incorporating nine National Fisheries Research WT/TPR/S/310/Rev.1 • Japan 
 
- 85 - 
 
  Institutes. In 2003 it took over the duties of the Japan Marine Fishery Research Centre, and the 
Japan Sea-Farming Association, and, in 2006, the National Salmon Resources Centre. The FRA is responsible for research into many aspects of capture and aquaculture as well as monitoring fishing stocks. In 2009, following a request from the Fisheries Agency, it published "The Grand 
Design of Fisheries and Resources Management in Japan".
40 
4.69.  The main laws concerning the fisheries sector are: 
• Fisheries Law of 1949 (revised in 1962 and last amended in 2007) which sets out basic 
rights to fisheries and licensing requiremen ts for individuals and management entities; 
• Basic Law on the Fisheries Policy of 2001 (last amended in 2008) which provides for 
measures to ensure sustainable exploitation , stability of supply, protection of the 
marine environment, and the basis for amendments of related legislation; 
• Fisheries Cooperative Association Law of 1948 (last amended in 2007) which sets out 
the legal framework for the Fisheries Cooperation Associations;  
• Law to Ensure Sustainable Aquaculture Production of 1999 (last amended in 2005) 
which addresses environmental concerns associated with aquaculture;  
• Act on the Exercise of the Sovereign Right for Fishery, etc. in the Exclusive Economic 
Zone of 1996 (last amended in 2001);  
• Act on Preservation and Control of Living Marine Resources of 1996 (last amended 
in 2007) which sets out the legal basis for establishing the total allowable catch (TAC) and total allowable effort (TAE);  
• Act on the Protection of Fishery Resources of 1951 (last amended in 2010) which 
provides for measures to protect marine resources, such as closure of fishing grounds, 
and catch and gear restrictions, as well as measures to address pollution.
41, 42, 43 
4.70.  Policy for the fisheries sector is set out in the Basic Plan for Fisheries which was formulated 
in 2012 following earlier plans such as the Basic Fisheries Plan of 2002 that was further developed 
in 2007. The Basic Plan sets out multiple objectives for the sector and fishing communities, based on four axes: 
• Reconstruction of damage caused by the Great East Japan Earthquake; 
• Sustainable use of resources through resource management and sustainable 
aquaculture;  
• Promotion of consumption based on foods' safety, quality, and promotion; and 
• Improved safety and livelihood of fishing communities.
44, 45 
4.71.  The average duty on imports of fish and fish products is 6.2% with a maximum rate of 15% 
and a standard deviation of 3.7 – which indicates that there is not much variation among tariffs. In 
addition, other market access measures apply to several species:  
• For some tuna and tuna-like species, such as bluefin tuna, southern bluefin tuna and 
bigeye tuna, Japan has import control systems, including import approval and 
acknowledgements for imports which, according to the authorities, are in accordance 
with the conservation and management measures of some tuna regional fisheries 
                                               
40 FRA (2009). 
41 European Parliament (2013). 
42 FAO (undated). 
43 Japanese authorities. 
44 MAFF (2013b). 
45 Mizahara M. (2012). WT/TPR/S/310/Rev.1 • Japan 
 
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  management organizations (RFMOs) such as the International Commission for the 
Conservation of Atlantic Tuna (ICCAT) and the Commission for the Conservation of Southern Bluefin Tuna (CCSBT); and  
• Import quotas apply to several other species, including herring, cod, mackerel, 
sardines, and saury. According to the authorities, these measures complement its 
management of coastal fisheries' resources, including TACs which apply to some of these species.
46 
4.2.3.1  Reconstruction 
4.72.  The Great East Japan Earthquake and tsunami caused extensive damage to the fishery 
sector in Japan causing an estimated ¥1.25 trillion in damage to 28,612 vessels, and 319 ports, and including ¥133.5 billion in damage to aquaculture facilities and products. Under the Fisheries 
Recovery Master Plan, the objective is to complete the recovery of fishing port facilities by 
end-FY2015. Over 12,000 vessels had been recove red by end-FY2013 and considerable progress 
has been made in replacing or recovering processing and distribution and seedling production 
facilities. To address concerns about food safety following the Fukushima nuclear power plant 
accident, an extensive system for monitoring radiation levels in the relevant area was introduced, backed, if necessary, by voluntary or compulsory  suspension of fishing operations, sales, and 
distribution.  
4.2.3.2  Stock management 4.73.  In 2012 the FRA assessed 52 species and 84 fishing stocks and estimated that resource 
levels were low for 35 stocks, medium for 34, and high for 15. Management of resources is based 
on several measures, including fishing rights and permits, as well as voluntary resource 
management supported by the Government. 
4.74.  Fishery rights and permits for fishing may be granted as follows:  
• Fishery rights granted by prefectural governors for coastal fishing based on the fishing 
ground plan which sets out the type of fish ery, the fishing ground and other details. The 
rights include operation of large-scale set-net fishing, aquaculture in specified areas, 
and small-scale common fishing; 
• The prefectural governors may grant permits for small- to medium-scale fishing based 
on prefectural regulations which must be approved by MAFF; and 
• MAFF may grant permits for large-scale off-shore and distant-water fishing as well as 
specified fishing methods for certain species. The permits may be: (i) for some 
designated fisheries where the total number of  vessels by tonnage class and each area 
of operation are specified in a 5-yearly (generally) notification made by the Minister; 
(ii) for some specified fisheries where the Ministers grants a permit each year; or 
(iii) for some activities and species where notification must be made to the Minister before the start of the operation period.
47 
4.75.  TAC are set for seven species by the Fish eries Agency based on estimates of allowable 
biological catch and other factors and in consultation with different stakeholders.48 It has been 
noted that, in some cases, the TAC had been gr eater than the allowable biological catch and  Japan 
has not introduced an explicit ban on discards.49 According to the authorities, efforts have been 
made to ensure that the TAC conforms to the allowable biological catch and individual quota 
systems have been introduced  for three species, including Atlantic bluefin tuna and southern 
bluefin tuna. 
                                               
46 Japanese authorities; and JETRO (2011) , pp. 1-2. 
47 MAFF (2013b), p. 27. 
48 TACs are set for saury, Alaska pollack, horse ma ckerel, sardine, mackerel, Japanese common squid, 
and snow crab. 
49 FRC (2008), p. 7 (Japanese). Translated and referred to in European Parliament (2013), p. 25. WT/TPR/S/310/Rev.1 • Japan 
 
- 87 - 
 
  4.76.  In 2011, a new resource-management framework for both capture and aquaculture was 
introduced under which the fishery organizations prepare and implement resource-management plans in line with the guidelines developed by the central government or prefectural authorities. As at end-March 2013, 1,705 resource-management plans had been prepared.  
4.77.  Several measures have been taken to prevent and deter illegal, unreported, and 
unregulated (IUU) fishing, through bilateral cooperation and information-sharing efforts, and through regional fisheries' management organizations, for example vessel-monitoring systems and 
trade-related measures such as statistical document programmes and catch documentation 
systems.  
4.2.3.3  International agreements 4.78.  Japan is a member of a number of international and regional fishery organizations
50 and has 
intergovernmental agreements with Australia, Ca nada, China, France, Kiribati, the Republic of 
Korea, Marshall Islands, Morocco, the Russian Federation, Solomon Islands, Senegal, and Tuvalu. The agreements with Australia, Canada, and France do not provide for access by Japanese fishing 
vessels and the agreements with China, the Repu blic of Korea, and the Russian Federation are 
mutual-access agreements allowing reciprocal acce ss to each country's EEZ. In addition there are 
numerous private-sector-based agreements which provide for access to the waters of other 
countries and territories (Cabo Verde, Côte d'Ivoire, Equatorial Guinea, Fiji, Gabon, Gambia, 
Guinea, Guinea-Bissau, Madagascar, Mauritania, Mauritius, Micronesia, Mozambique, Nauru, Palau, Papua New Guinea, Sao Tome and Principe, Seychelles, Sierra Leone, St. Helena, and Tanzania). 
4.2.3.4  Support for fisheries 
4.79.  According to the OECD: "General services account for nearly half of government financial 
transfers, of which construction of public infras tructure is the most significant." Cost reducing 
transfers represent only a small proportion of total support and "an interest subsidy is the major 
cost-reducing transfer in Japan" while "support fo r renewal of small fishing boats and equipment is 
provided to improve workers' safety at sea on family-owned coastal boats" (Table 4.17).
51  
Table 4.17 Government transfers to fishing, 2005-11 
(¥ billion) 
  2005 2006 2007 2008 2009 2010 2011
Marine capture fisheries 238.4 227.2 214.4 207.7 201.4  149.0  153.0 
Decommissioning of vessels and licences 1.7 1.5 1.5 1.4 1.6  1.2  0.5 
Disaster relief payments .. .. .. .. .. .. ..
Cost-reducing transfers 1.2 0.4 0.4 0.3 0.3  2.4  1.1 
General services 235.6 225.3 212.6 206.0 199.5  145.3  151.4 
Aquaculture 0.4 1.8 1.4 1.3 1.1  0.9  0.9 
Cost-reducing transfers .. .. .. .. .. 0.2  0.1 
General services 0.4 1.8 1.4 1.3 1.1  0.8  0.9 
Marketing and processing 2.2 2.0 2.0 2.2 3.0  1.6  0.6 
General services 2.2 2.0 2.0 2.2 3.0  1.6  0.6 
Total 240.9 231.0 217.9 211.3 205.5  151.5  154.6 
.. Not available. 
Source: OECD (2013), OECD Review of Fisheries: Country Statistics 2013 , OECD Publishing, p. 235. Viewed 
 at: http://dx.doi.org/10.1787/rev_fish_stat_en-2013-en  [December 2014]. 
4.80.  Supplementary budgets provided additional  assistance in response to the 2011 earthquake. 
The FY2013 budget and supplementary budget provid ed a total of ¥48.4 billion in financial support 
to fishermen and cooperatives out of a total of ¥293.3 billion.52 
                                               
50 Indian Ocean Tuna Commission (IOTC), Western and Central Pacific Fisher ies Commission (WCPFC), 
Inter-American Tropical Tuna Commission (IATTC), International Commission for the Conservation of Atlantic Tuna (ICCAT), Commission for the Conservation of Southern Bluefin Tuna (CCSBT), General Fisheries 
Commission for the Mediterranean (GFC M), South East Atlantic Fishery Organization (SEAFO), Convention on 
the Conservation and Management of Pollock Resource s in the Central Bering Sea (CCBSP), North Pacific 
Anadromous Fish Commission (NPAFC), Commission for the Conservation of Antarctic Marine Living Resources, 
and Northwest Atlantic Fisheries Organization (NAFO). 
51 OECD (2013d), p. 319. 
52 European Parliament (2013), p. 23. WT/TPR/S/310/Rev.1 • Japan 
 
- 88 - 
 
  4.81.  Supporting the resource management system  referred to above, an income stabilization 
measure was introduced in FY2011, and a cost reduction measure introduced in FY2010. The income stabilization measure is intended to partially compensate for losses in income arising from compliance with a resource-management plan while the cost-reduction measure compensates for 
any increase above the average for the past several years in the price of crude oil or feed costs. 
The cost-reduction measure is half funded by  the Government and half by the fishermen.
53 
4.82.  In addition, a tax exemption for fossil fu els is provided for some sectors, including 
agriculture and fishing, and the special-purpose tax on light oil (which is used for construction and 
maintenance of public roads) does not apply to non-road uses of light oils which includes fishing vessels.
54 The authorities stated that other industrial activities, such as aquaculture, forestry, 
ceramics, and other railways are subject to the same treatment. 
4.83.  The Fisheries Modernization Fund Interest Subsidy and the Fund for the Measure to 
Recovery Fishery Resources were notified to the WTO Committee on Subsidies and Countervailing Measures. According to the notification, the Fisheries Modernization Fund provides an interest 
subsidy to financial organizations, including fisheries' cooperatives, "to advance equipments and 
modernize management of fisheries and relate d sectors." The total amount provided was 
¥3.9 million in FY2013 and ¥4.6 million in FY2012. Under the Fund for the Measure to Recovery 
Fishery Resources, the Government provides grants for comprehensive programmes implemented 
by non-governmental organizations. The subsidies are provided for sustainable management of fishery resources, promotion of stock enhancement and aquaculture, and conservation of the coastal environment. The total amount provid ed was ¥2,706 million in FY2013 and ¥3,071 million 
in FY2012.
55  
4.3  Energy 4.3.1  Features 
4.84.  Japan imports nearly all its basic energy requ irements in the form of natural gas, crude oil, 
coal, and oil products. Domestic oil production, at 0.005 million bbl/day and reserves of about 44 million barrels are small compared to consumption of 4.7 million bbl/day.
56 One of the main 
sources of energy used to be from nuclear plan ts, which accounted for over 15% of total energy 
supply and over 30% of total electricity production  in 2005, but this declined sharply following the 
accident at the Fukushima nuclear plant in 2011 and the subsequent shut down of other nuclear power plants leading to greater imports of natural gas and a reduction in energy consumption 
(Table 4.18).
57  
4.85.  Most energy imports are in the form of crude oil which is refined in Japan. Most of the 
refined products are consumed domestically for transport, commercial and public services, and 
residential use but some are exported. In 2013, to tal refinery capacity was 4.123 million bbl/day 
and refinery throughputs were 3.453 million, down from 4.645 million and 4.118 million respectively in 2003.
58  
Table 4.18 Total primary energy supply, 2005-12 
('000 tonnes of oil equivalent (toe)) 
 2005 2006 2007 2008 2009 2010 2011 2012 
Coal 110,046 111,433 116,363 113,572 101,273 115,116 107,531 112,178 
Crude oil 215,701 207,722 211,644 202,602 185,411 185,314 181,067 183,087 
Oil products 27,467 25,818 18,038 11,243 15,415 17,009 25,802 27,107 
Natural gas 70,565 77,454 83,046 83,715 80,732 86,014 100,062 105,292 
Nuclear 79,421 79,095 68,756 67,270 72,905 75,114 25,520 4,154 
Hydro 6,576 7,527 6,365 6,575 6,613 7,070 7,155 6,492 
Geothermal, solar, etc. 3,837 3,738 3,729 3,482 3,682 3,522 3,704 3,781 
                                               
53 MAFF (2011a), p. 4 . 
54 Martini R. (2012). 
55 WTO document G/SCM/N/253/JPN/Suppl.1, 17 March 2014. 
56 U.S. Energy Informat ion Administration online data. Viewed at: 
http://www.eia.gov/countries/data.cfm  [December 2014]. 
57 International Energy Agency online data. Viewed at: http://www.iea.org/statistics/  [November 2014]. 
58 BP (2014). WT/TPR/S/310/Rev.1 • Japan 
 
- 89 - 
 
   2005 2006 2007 2008 2009 2010 2011 2012 
Biofuels and waste 6,807 6,928 7,170 6,821 6,381 9,647 10,116 10,191 
Total 520,421 519,695 515,111 495,278 472,412 498,808 461,956 452,281 
Source: International Energy Agency online database. Viewed at: http://www.iea.org/statistics/  
[November 2014]. 
4.3.2  Electricity 
4.3.2.1  Features 4.86.  From 2005 to 2012, total electricity production and consumption was quite stable at about 
1 million GWh each year. Since then production has declined, and the fuel mix has changed as 
production from gas increased while production fr om nuclear declined. Consumption has also been 
relatively stable, peaking at just over 1 million GWh, but has declined sharply since 2011: reaching 923 GWh in 2012 (Table 4.19). 
Table 4.19 Production and consum ption of electricity, 2005-12 
(GWh) 
 2005 2006 2007 2008 2009 2010 2011 2012
Production 
Gas 243,819  267,430 294,203 286,867 287,865 300,751  375,046  397,219 
Coal 300,829  292,757  307,903 292,124 281,733 299,134  281,936  303,230 
Oil 135,164  113,913  154,494 131,209 86,083 91,668  150,976  181,289 
Hydro 86,350  97,340  84,234 83,504 83,832 90,682  91,709  83,645 
Biofuels 15,340  15,339  16,095 15,448 14,346 29,095  29,150  30,241 
Nuclea r 304,755  303,426  263,832 258,128 279,750 288,230  101,761  15,939 
Waste 7,060  7,299  7,275 7,322 7,457 7,114  8,170  8,332 
Solar – pv 1,493  1,794  2,015 2,251 2,758 3,800  5,160  6,963 
Wind 1,754  2,210  2,624 2,946 3,616 4,017  4,677  4,838 
Geothermal 3,226  3,081  2,043 2,750 2,886 2,632  2,676  2,609 
Total production 1,099,790  1,104,589  1,134,718 1,082,549 1,050,326 1,117,123  1,051,261  1,034,305 
     
Losses 50,430  50,225  50,989 51,312 50,526 49,387  49,007  45,386 
     
Consumption 
Industry 341,141  343,763  349,440 309,901 289,367 328,191  286,678  275,883 
Transport 19,057  18,771  18,854 18,829 18,815 18,917  18,739  18,645
Residential 283,080  279,594  290,999 286,189 286,016 305,265  290,208  287,343 
Services 332,334  339,890  349,068 346,373 338,143 342,665  337,806  333,058 
Agriculture 969  864  925 882 876 895  858  893 
N.e.s. 1,493  1,794  2,015 2,251 2,758 3,795  5,119  6,877 
Total consumption 978,074  984,676  1,011,301 964,425 935,975 999,728  939,408  922,699 
Source: International Energy Agency online database. Viewed at: http://www.iea.org/statistics/  
 [November 2014]. 
4.87.  Up to 1995, electricity in Japan was provided by ten vertically integrated regional utilities 
companies with monopolies on generation, transmission, distribution and retail in their respective regions. All regions provide retail at 100 V, but th e three regions in the east operate at 50Hz and 
seven in the west at 60 Hz. Although the sector has been gradually reformed over the past 
twenty years, the regional utilities are still th e main producers, transmitters, distributors, and 
retailers, while interchange between some of the regions remains limited and the three frequency 
converters between the 50 and 60 Hz areas have a total capacity of only 1.2 GW (Chart 4.6). 
Okinawa is not connected to the others and operates at 60 Hz retail.  
4.88.  Each regional electricity utility has a monopoly on the retail of electricity to general 
consumers of less than 50 kW in its region. For other consumers, there are three other types of 
retailers: (i) general electric utilities; (ii) Power Producer and Suppliers (PPS) that may provide 
supply to consumers with contracts for more than 50kW; and (iii) specified electricity utilities may supply electricity to specified customers. In addition, wholesale electric utilities supply electricity to 
the general electric utilities. In most cases, the regional utilities are required to allow 
interconnections and provide a wheeling service for their networks. Since the reforms were introduced, the proportion of electricity generated by the general electric utilities has declined, 
from about 75% in 1994 to about 68% (Table 4.20). WT/TPR/S/310/Rev.1 • Japan 
 
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  Chart 4.6 Electricity regions, peak  demand and interconnections, 2012 
 
Chugoku
10.85 GW
Kyushu
16.34 GWKansai
28.16 GW
Shikoku
5.49 GWHokuriku
5.26 GW
Chubu
26.23 GWHokkaido
5.40 GW
Tohoku
13.95 GW
Tokyo
50.93 GW0.6 GW DC Tie line
12.62 GW
1.2 GW 
frequency converter0.3 GW 5.56 GW 
5.56 GW 
1.4 GW DC 
Tie line2.4 GW16.66 GW
5.56 GW 
60 Hz 100 V 50 Hz 100 V
 
Note: Font, circle and line sizes are illustrative and not proportional. 
Source: METI. 
Table 4.20 Power production in Japan in FY1994 and FY2012 
(million kWh) 
 FY1994 FY2012 
General electric utilities 727,102 742,288 
Wholesale electric utilities 122,158 68,256 
Specified electric utilities .. 1,347 
Power producers and suppliers  .. 10,063 
Private generation  115,071 271,996 
Total 964,330 1,093,950 
.. Not available. Source: The Survey of Electric  Power Statistics of Japan. 
4.3.2.2  Policy and legislation 
4.89.  The Agency for Natural Resources and Energy and its Advisory Committee for Natural 
Resources and Energy in METI are responsible for energy policy, planning, and legislation as well 
as regulation of the industry. The Nuclear Regulati on Authority in the Ministry of the Environment 
is responsible for supervision of nuclear power plants. METI has the authority to issue licences to 
electricity utilities, and to approve power sales' tariffs for the general electricity utilities and the 
specified electricity utilities. It may also issue service-related orders to electricity companies, including orders: 
• to the general electric utilities and specified electricity utilities to improve operations; WT/TPR/S/310/Rev.1 • Japan 
 
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  • to a general electric utility to supply another utility in the case of emergencies, and to 
provide a wheeling service;  
• to determine the price and contract period for electricity from renewable sources; and 
• to a utility to enter a purchase or interconnection agreement with a producer of 
electricity from renewable sources.59 
4.90.  The Electric Power System Council of Japan (ESCJ) is the neutral transmission organization. 
The Council is made up of representatives of elec tric utilities, PPS, wholesale electricity suppliers, 
"auto-producers" (private generators), and "neu tral members" (appointed based on nominations 
by the Board of Directors of the ESCJ). The ESCJ  is responsible for: developing rules for the 
development of the electricity system includin g access to power, and the operation of power 
systems; dispute resolution; coordination of load-dispatching operations; and data collection and 
dissemination.60 
4.91.  Japan Electric Power Exchange (JEPX) is a non-profit private entity which was established 
in 2003 and composed of members from the electricity companies to operate the power exchange 
system. About 10,446 GWh was traded by JEPX in 2013. 
4.92.  The principal legislation regulating the electricity sector is the Electricity Business Act 
of 1964 since when it has been amended a number of times in line with the policy of partial 
liberalization of the sector: 
• In 1995 the Act was amended: 
o  To abolish the approval system for ente ring the wholesale business and to provide 
the legal bases for the establishment of the auction system for power purchasing; 
o  To allow the establishment of Specified Electricity Utilities to use their own 
generation, distribution, and transmission systems for direct delivery to customers in some areas; and 
o  To introduce 'Optional Supply Provisions' into the tariff system; 
• In 1999, the Act was revised again:  
o  To allow partial liberalization for extra high voltage power for industrial and 
commercial users (between 20 kV and 2 MW) in the retail sector; and 
o  To provide for a transition from an approval system to a notification system for 
some cases such as decreasing the electricity price;  
• The 2003 reforms:  
o  Expanded liberalization gradually to reach customers contracted for 50 kW 
by 2008; 
o  Enhanced regulation to ensure transparency in transmission and distribution and 
introduced accounting unbundling for the general electricity utilities to separate 
accounting of generation, transmission and distribution activities; 
o  Established the Electric Power System Council of Japan; and 
o  Established the Japan Electric Power Exchange; 
• The 2008 reforms focused on further regulatory changes such as activation of JEPX, and 
reforming the competitive conditions for accessing transmission lines;  
• The 2013 amendment provided for the estab lishment of the Organization for Cross-
regional Coordination of Transmission Operators (OCCTO), which is to be established 
in 2015; and  
• In June 2014, the Act was amended again to allow for full retail competition planned for 
introduction in 2016. 
                                               
59 Sato N., Matsudaira S. (2013), p. 102. 
60 ESJ online information. Viewed at: http://www.escj.or.jp/english/  [December 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
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  4.93.  Despite the gradual reform of the electricity sector from 1995 to 2008, it was reported 
in 2012 that the regional utility companies (or general electric utilities in Chart 4.6) continued to generate over 70% of total electricity and most transactions by independent power producers were bilateral long-run contracts, with the regional utilities and JEPX transactions accounting for less 
than 1% of total electricity generated. Similarly,  PPS had a market share of only about 2% of the 
retail market.
61 
4.94.  The 2013 and 2014 amended acts to the Electricity Business Act have followed the 
government's Electricity System Reform agreed in April 2013 with the objectives of securing a 
stable supply of electricity, suppressing electricity rates to the maximum extent possible, and expanding consumer choice and business opportunities. 
4.95.  The first step of the Electricity System Reform was provided for in the 2013 amendment to 
the Electricity Business Act and the subsequent Cabinet Order of June 2014 to establish the 
OCCTO in April 2015. OCCTO is to be a government authorized organization with the authority to 
aggregate and analyse supply and demand, the grid plans of the electric power companies. It will 
also have the authority to order changes to these plans, including ordering companies to reinforce 
generation and power interchanges under tight su pply-demand situations. The second step of the 
reform, full retail competition, will begin around 2016 under the 2014 amendment and the 
Government will decide whether to abolish the re gulations for the retail tariff around 2018-20 or 
later depending on the competition status at that time. The third step will be the legal unbundling of the transmission and distribution sectors from  the generation and retail sectors, the intention 
being to secure the neutrality of the transmission and distribution sectors.
62 
4.4  Finance 
4.4.1  Features 4.96.  The finance and insurance sector contributed ¥22,854 billion, or 4.9%, to GDP in 2011. This 
represented a decline in both absolute and rela tive terms compared to 2005 when the sector 
contributed ¥30,789 billion, or 6.1% m to GDP. Just over 1.5 million  people are employed in the 
sector. However, although the contribution to em ployment and GDP may appear to be modest, the 
sector is very important to the economy as total savings continue to increase with banking and 
insurance companies' assets combined equal to 272% of GDP at end-March 2013 (Box 4.1). 
4.97.  The financial sector is relatively concentr ated: the top three banks have a market share of 
over 41%, the top three life insurance companies with nearly 52%, and the top three non-life 
insurance with 65% of their respective markets.  
4.98.  Although not listed among the top banks in Bo x 4.1, Japan Post Bank is one of the largest in 
Japan in terms of deposits (about ¥176 trillion) and Japan Post Insurance one of the largest in 
terms of non-banking assets (about ¥90 trillion). Both the Japan Post Bank and Japan Post 
Insurance are wholly-owned subsidiaries of the state-owned Japan Post Holdings Co. Ltd.
63 As 
noted in the last TPR report, the Postal Service Privatization Act of 2012 provides for the 
privatisation of Japan Post Holdings but does not set a specific deadline.64 According to the 
authorities, the Government of Japan is required to hold more than one-third of the shares of Japan Post Holdings Co. Ltd and will dispose of the shares over this threshold at the earliest 
possible time. The timing and extent of the sale of these shares has not yet been scheduled and 
will be determined taking into account various factors, such as stock market trends, opinions of 
specialists and consultations with Japan Post Holdings Co. Ltd. 
                                               
61 Ito K. (2012), p. 11. 
62 METI (2013a). 
63 Japan Post Group (2013). 
64 WTO document WT/TPR/S/276/Rev.1, 18 June 2013, Chapter 4, paragraphs 46-50. WT/TPR/S/310/Rev.1 • Japan 
 
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  Box 4.1 Market and regulatory regime fo r financial services, general overview 
Number of financial services providers (end-December 2013): banks: 196, of which 106 regional banks; 
insurance companies: 96, of which 43 life insuranc e, and 55 non-life; securities companies: 252 
Significant players (cooperatives, mutual  institutions, and the postal system): JP Bank and JP 
Insurance in the Japan Post Group and mutual instit utions (with mostly a regional and an SME focus) 
Total bank and insurance companies assets, end-March 2013: 
 - as % of the whole financial sector: bankin g companies: 51.4%, insurance companies: 21.1% 
 - as % of nominal GDP: banking companies: 193.0%; insurance companies: 79.1% 
 - as % of real GDP: banking companies: 176.2%; insurance companies: 72.2% 
Major consolidations since January 2013:  
Banks:  Merger between Mizuho Bank Ltd and Mizuho Corporate Bank Ltd (July 2013); merger between Kiyo 
Holdings Inc. and Kiyo Bank Ltd (October 2013) 
Securities:  none 
Life insurance:  none 
Non-life insurance:  none 
Market share held by the top 5 largest firms, end-March 2013: 
Banks (based on data for all banks across the country): top 3: 41.5%; top 5: 53.9% (Bank of Tokyo-
Mitsubishi UFJ Ltd – 18.6%; Sumitomo Mitsui Banking Corporation – 13.8%; Mizuho Corporate Bank Ltd – 
9.1%; Mizuho Bank Ltd – 8.5%; Sumitomo Mitsui Trust Bank Ltd – 3.9%)  
Life insurance:  top 3: 51.7%; top 5: 69.0% (JP Insurance – 26.2%; Nippon Life Insurance Company – 
15.9%; The Dai-ichi Life Insurance Company – 9.6%; Me iji Yasuda Insurance Compan y – 9.6%; Sumitomo Life 
Insurance Company – 7.7%)   
Non-life insurance:  top 3: 65.2%; top 5: 84.3% (Tokio Marine and Nichido Fire Insurance Co. Ltd – 28.6%; 
Mitsui Sumitomo Insurance Company Ltd – 20.3%; Sompo Japan Insurance Inc. – 16.3%; Aioi Nissay Dowa 
Insurance Co. Ltd – 11.1%; Nipponkoa Insurance Co. Ltd – 7.9%)  
Employees pensions funds  (by the financial statements for fiscal year 2012): top 3: 13.9%; top 5: 17.7% 
Mutual funds:  top 3: 35.1%; top 5: 47.0% (Nomura Asset Management Co. Ltd – 16.6%; Daiwa Asset 
Management Co. Ltd – 10.3%; Nikko Asset Management Co. Ltd – 8.2%; Mitsubishi  UFJ Asset Management 
Co. Ltd – 7.0%; Kokusai Asset Management Co. Ltd – 4.9%) 
Securities companies:  top 3: 33.3%; top 5: 48.2% (Mitsubishi UFJ Morgan Stanley Securities Co. Ltd – 
12.4%; Mizuho Securities Co. Ltd – 10.7%; Daiwa Se curities Capital Markets Co Ltd – 10.1%; Nomura 
Securities Co. Ltd – 9.0%; SMBC Nikko Securities Inc. – 5.9%  
Credit rating agencies  (end-December 2013 – based on number of rating analysts): top 3: 76.5%; top 5: 
93.9% (Rating and Investment Information Inc. – 34.7%; Japan Credit Rating Agency Ltd. – 27.2%; Standard 
& Poor's Ratings Japan K.K: – 14.6%; Moody's Japan K. K. – 12.7%; Standard & P oor's Japan K.K. – 4.7%) 
Ownership by type of activity: 
Banks  (excluding foreign bank branches and locally in corporated foreign banks): Fully state-owned: 0  
Government Financial Institutions: fully state-owned: 4 (Development Bank of Japan, Japan Bank for 
International Co-operation, Japan Finance Corporation and Okinawa Development Finance Corporation)  
Life insurance:  fully state-owned: none; fully domestically-owned, private: 17; foreign minority-owned: 3; 
majority foreign-owned: 15; mutual companie s: 5; branches of foreign companies: 3 
Non-life insurance:  fully state-owned: none; fully domestically-o wned, private: 24, minority foreign-owned: 
1; majority foreign-owned: 6; bran ches of foreign companies: 23; lice nsed specified juridical persons: 1 
Mutual funds:  domestic shareholders: 52; fore ign shareholders: 32 (based on business reports of each fund 
submitted in FY2013 and on the nation ality of the largest shareholder) 
Securities companies : domestic shareholders: 215; foreign shareholders: 67 (as at March 2013, based on 
the nationality of the largest shareholder) 
Credit rating agencies:  domestic shareholders: 5; foreign shareholders: 2 (end December 2013, based on 
the nationality of the largest shareholder) 
Specific taxes on financial transactions:  No financial transaction tax (FTT); incomes from financial 
transactions are subject to tax; – tax on individuals differs by type of income. 
Source: Information provided by the Japanese authorities. 
4.99.  The Financial Services Agency (FSA), which reports to the Cabinet Office, is the main 
regulator for financial institutions in Japan although it shares some prudential supervision with the 
Bank of Japan while the Japan Fair Trade Commission is responsible for competition policy issues. 
Within the FSA, the Securities Exchange Survei llance Commission (SESC) is responsible for the 
regulation of capital markets.  
4.100.  The Ministry of Finance is responsible for general financial policy while the FSA handles 
planning and policy-making for the financial system, inspection and supervision, rules and WT/TPR/S/310/Rev.1 • Japan 
 
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  regulations, accounting standards, supervision of certified public accountants and auditing firms, 
and represents Japan in international and regional discussions. 
4.4.2  Banking 4.101.  Excluding the Japan Post Bank, the total assets of banks were ¥926,375 billion and 
deposits of ¥653,856 billion at end March 2014, with foreign banks in Japan holding 
¥39,520 billion in assets and ¥8,324 billion in deposits. 
4.102.  The result of the decade -long process of mergers and allia nces among city banks, long 
term credit banks, and trust banks has been the creation of a relatively small number of "mega 
banking groups."
65 The structure of the banking and financial services sector during FY2013-14 
has been stable relative to previous years: the two mergers (Mizuho Bank and Mizuho Corporate Bank, and Kiyo Bank and Kiyo Holdings) were essentially corporate restructurings and no other 
mergers or acquisitions were reported (Box 4.2).  
4.103.  Since 2011, the FSA has amended the rules on large exposures in line with international 
standards, with effect from December 2014. Through supervisory guidelines and related measures,  
the FSA revised the minimum capital requirements for internationally-active banks and, according 
to the authorities, intends to introduce liquidity standards (Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)), and capital buffers in accordance with Basel III (Box 4.2). 
Box 4.2 Market and regulatory regime for banking 
Economic indicators 
Non-performing loans as a percentage of total bank assets: 2.3% (end-March 2013) 
Net operating profits per employee: ¥16.9million 
Net income per employee: ¥10.3 million  
Regulatory framework 
Supervisory authorities: 
Ministry/agency responsible for defining banking sector policy: Financial Services Agency (FSA) 
Sector supervisor (monitoring bank li quidity, overseeing payment and settlement systems, etc.): FSA and the 
Bank of Japan 
Responsibility for competition policy is sues: the Japan Fair Trade Commission 
Preferential and bilateral policies: 
Preferential arrangements affecting banking services: none 
Bilateral agreements and MOUs (notably concerni ng prudential regulation and supervision): 7 
Recognition of prudential measures of  other countries through internationa l agreements or unilaterally: none 
Licensing: 
General criteria: 1. The person who has filed an applicat ion for a banking licence shall have the financial basis 
to conduct the business of a bank soundly and effici ently, and shall have good  prospects for income and 
expenditure pertaining to the business. 2. In light of such matters as its personnel structure, the applicant shall 
have the knowledge and experience to be able to carry  out the business of a bank appropriately, fairly and 
efficiently, and shall have sufficient social credibility (Banking Act, Article 4.2). 
Additional criteria for foreign banks: reciprocity test  – Where a person whose entire or partial body of 
shareholders is a foreign bank, etc. files an application for a banking licence, if the foreign bank, etc. lawfully 
holds a number of voting rights in the person filing the application for a banking licence exceeding the number 
calculated by multiplying the voting rights of all of that  person's shareholders by 50 %, the Prime Minister shall 
examine whether it can be found that banks are given substantially the same treatment as under the Banking 
Act in the state where the principal business office of th e  f o r e i g n  b a n k ,  e t c .  i s  l o c a t e d ,  i n  a d d i t i o n  t o  t h e  
requirements prescribed in the preceding paragraph (Banki ng Act, Article 4.3). Where a foreign bank intends to 
receive a business licence, and where establishment of a branch office of the foreig n bank requires permission 
from a foreign government agency or must go through any other procedures, the bank must present a written 
document to prove that the permission has been obta ined (Ordinance for Enforcement of the Banking Act, 
Article 28). 
Licencing organ: the FSA 
Validity of a licence: a licence has no validity period 
Restrictions on banks selling or disposing of licences : allocated licences may not be sold; the abolition of 
banking and the dissolution of a bank shall not take ef fect without the authorization of the Prime Minister 
                                               
65 Japanese Bankers' Association online information. Viewed at: 
http://www.zenginkyo.or.jp/en/banks/changing/index.html  [December 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
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  (Banking Act, Article 37.1). 
Minimum capital requirements to obtain a li cence (domestic and foreign banks): ¥2 billion 
Recognition of home-country supervision: Where a fore ign bank intends to receive a business licence, and 
where establishment of a branch office of the foreig n bank requires permission from a foreign government 
agency or must go through any other procedures, the ba nk must present a written document to prove that the 
permission has been obtained (Ordinance for Enforcement of the Bank ing Act, Ar ticle 28). 
Other authorizations required: 
- A person who wishes to become a holder of voting rights in a single bank which amount to 20% or greater 
shall obtain authorization from the Prime Minister in advance (Banking Act, Article 52(9)). 
- When a branch office of a foreign bank wishes to establish a secondary office, it shall obtain authorization 
therefore from the Prime Minister (Banking Act, Article 47(3)). 
Prudential regulations: 
Administrative allocation of financial resources: fi nancial resources are not al located administratively 
Determination of interest rates and fees: banks may determine interest rates and fees freely. 
Measures to ensure compliance with the Basel Committee's Core Principles for Effective Banking 
Supervision: 
The FSA states in supervisory guidelines: "the FSA tries to  reflect principles and guidelines, with regard to bank 
supervision, which the Basel Committee, etc. develops on their supervision". The FSA has revised the Banking 
Act, supervisory guidelines, and insp ection manuals, based on the Basel Committee's Core Principles (BCP). 
When the BCP itself is revised, the FSA will review the parts of the guidelines that relate to the revised parts of 
the BCP, as necessary. To ensure compliance with the BCP, the FSA implements inspections and supervision 
while taking into consideration the scale and complexity of financial institutions. 
Specific provisions against money laundering: 
Specified business operators including financial institutions are working on customer identification, preparation 
and preservation of transaction records etc., and report ing of suspicious transactions, which are obligations 
under "the Act on Prevention of Transfer of Criminal  Proceeds". The FSA is encouraging efforts in financial 
institutions, through examination and supervision.  
Bank deposit insurance scheme: 
The Government introduced the deposit insurance system to protect depositors in failed financial institutions 
and to contribute to the smooth settlement of funds. No n-interest-bearing deposits, such as current deposits 
are protected in full. The status of ot her deposits, such as time  deposits and ordinary deposits: no more than 
¥10 million and interest / person / financial institution; protection, in excess of that amount: depends on the 
asset status of the failing financial institution. The Deposit Insurance Corporation of Japan (DICJ) is responsible 
for deposit insurance operation, and failure resolution, as well as the purchase of  non-performing loans, and 
capital injection programmes. 
Source:  Information provided by the Japanese authorities. 
4.4.3  Insurance 
4.104.  The insurance subsector in Japan has been characterised as having four distinct kinds of 
institutions: 
• Given its size, number of outlets, and range of insurance products, Japan Post 
Insurance could be considered as a category in itself with ¥6,481.7 billion in premiums, 
etc. in 2012; 
• The insurance cooperatives ( kyosai kumiai ), the largest of which is the agricultural 
cooperative JA Kyosai with a reported US$71 billion in premiums in 2010 while the next 
four had US$15 billion; 
• Private domestic general insurance companie s, with ¥28,957.2 billion in premiums, etc. 
in 2012 make up the largest group and are dominated by the traditional companies with the top three having over half the total life insurance market (JP Insurance, Nippon Life 
Insurance Company, and Meiji Yasuda Life Insurance Company) (Box 4.1); and 
• Foreign general insurers, which were reported  to have had about 16% of the insurance 
market in 2010.
66 There are 15 majority foreign-owned, four minority foreign-owned, 
and four branches of foreign life insurance companies, while there are 23 minority 
                                               
66 Binder S., Luc Ngai J. (2012), p. 109. WT/TPR/S/310/Rev.1 • Japan 
 
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  foreign-owned and 1 majority foreign-owned, and 4 branches of foreign non-life 
insurance companies.67 
4.105.  The 6,619 kyosai or cooperative insurance societies represent a significant part of the 
insurance market with 13.4% of total life and non-life markets. Kyosai are exempt from the 
Insurance Business Act. Some – the regulated kyosai – are regulated by various ministries 
depending on the specific legislation governing their activities. For example, JA Kyosai is regulated by the MAFF under the Agricultural Cooperative Act. Others are essentially unregulated, provided 
they target specific groups of people. A bill to amend the Insurance Business Act to allow for the 
regulation of unregulated kyosai took effect from April 2006.  
4.106.  Box 4.3 provides details on the regulatory regime for the insurance sector. 4.4.4  Securities 
4.107.  At the end of 2013, the total market capita lization of companies listed on the first section 
of the Tokyo Stock Exchange was equivalent to 365% of GDP and bond market capitalization was 939% of GDP (Box 4.4). 
4.108.  The regulatory regime (Box 4.4) for financial services has continued to evolve. The 
prohibition on naked short selling, first introduced for six months following the 2008 financial crises and renewed several times, was made permanent and revised rules on short selling in 
general were introduced with effect from 5 November 2013. Since December 2012, Japan has 
required mandatory clearing of over-the-counter derivative transactions and, since April 2013, it has also required mandatory reporting. Mandat ory trading on electronic platforms will be 
introduced by September 2015. 
Box 4.3 Market and regulatory regime for insurance 
Penetration (premiums as share of GDP): Life insurance: 7.2%; no n-life insurance: 1.7%  
Regulatory framework 
Supervisory authorities:  
Ministry/agency responsible for defini ng insurance sector policy, and for supervision of the sector: the FSA, 
ministries specified in law for regulated kyosai  
Responsibility for competition policy is sues: the Japan Fair Trade Commission 
Preferential and bilateral policies: 
Preferential arrangements affecting insurance services: none 
Bilateral agreements and MOUs: 2 
Licensing: 
Criteria for assessing applications for insurance licence:  sufficient financial and organizational base to conduct 
insurance underwriting; and whether the underw ritten insurance products are appropriate 
Incompatibility of life and/or non-life insurance licenc es: insurance companies may conduct only one of these 
businesses 
Differential treatment for foreigners in the lic ensing process: no distinction under the Act 
Prior approval of home-country supe rvisor: compatible home-country regu lation and other criteria applied 
exclusively to foreigners: a foreign insurer requires a certificate from an organization whose jurisdiction 
includes the home country, proving that the insurer is  lawfully conducting insu rance business in its home 
country that is similar to the insurance business it intends to conduct in Japan 
Limitation on number of providers: none 
Licencing authority: the FSA, which is the single administrative organ for the consideration of licence 
applications 
Maximum processing time for applications: there is no provision under the Act for a maximum but the standard 
"to be attempted" is within 120 days 
Period of validity of a licence: without special conditions, a licence has no specified period of validity 
Restrictions on selling or disposing of licences: allocated licences may not be sold; where insurance companies 
abandon their insurance business, their licences become void 
Other authorization required: approval from the Prime Mini ster is required for the ac quisition of over 20% of 
the shares of an insurance company. This measure is non-discriminatory. 
Prudential regulations: 
Differences of treatment between state-owned firms, ot her domestically owned firm s, foreign-owned branches, 
                                               
67 WTO document WT/TPR/S/276/Rev.1, 18 June 2013, Chapter 4, paragraph 51. WT/TPR/S/310/Rev.1 • Japan 
 
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  and foreign-owned subsidiaries: foreign-owned subsidiaries are required to hold in Japan the necessary assets 
in order to secure an insurance policy that provides  for the company's potential collapse (Insurance Business 
Act, Article 197) 
Also, foreign-owned subsidiaries are exempt fro m a consolidated solvency margin standard 
Recognition of home-country supervision of foreign insurance companies: To obtain a licence, a foreign 
insurance company must be "carrying on Insurance Business in a foreign state in accordance with the Acts and 
regulations of the foreign state": ho me-country supervision of the foreig n insurance company is recognized 
(Insurance Business Act, Article 2(6), 185(1)) 
Minimum capital requirements to obtain a licence: ¥1 billion. Foreign insurance companies are required to 
deposit ¥200 million with the deposit office in Japan (Insurance Business Act, Article 6: 190) 
Other prudential tests for licence applicants: ¥1 billion  minimum capital requirement. In processing licence 
applications, consideration is given to ensuring equity capital in accordance with the contents and scale of the 
business anticipated, and a sufficient financial base to conduct the business of an insurance company soundly 
and efficiently, as well as to having good prospects for income  and expenditures pertaining to the business 
(Insurance Business Act, Article 5(1)(i)). In addition , the solvency margin ratio of each insurance company 
must always be no less than 200% 
Administrative allocation of insu rance services: insurance services  are allocated administratively 
Approval required for life and non-life premiums and pr oducts: the contents of insurance products, premium 
rates, etc., are subject to review at the time of appl ication for a licence. Also, approval is required from the 
FSA to revise the contents of insurance products, insurance premiums, etc., (Insurance Business Act, Article 
5(1)(iii)(iv), 123(1), 187(5), (207)).  
Note: The FSA is the supervisory author ity for both activities, assisted by the Minister  for Health, Labour and 
Welfare for pension funds. For management and sales of investment trust, licen sing takes the form of 
a registration procedure. Criteria taken into accoun t are historical records of  applicants, financial and 
organizational soundness, and minimum capital (¥50 mi llion at least). Foreign companies intending to 
exercise these activities must be exercising the sa me activity in their home country under appropriate 
supervision and must have a branch or office in Ja pan. Licences have no fixed duration and are not 
transferable. There is no limitation on the number  of providers. Box 4.5 details the main economic 
indicators and the general regulatory  framework of mutual funds and pensions fund services in Japan. 
Source:  Information provided by the Japanese authorities. 
Box 4.4 Market and regulatory regime for securities 
Economic indicators 
Total market capitalization of companies listed on the first section of the Tokyo Stock Exchange 
(end of each quarter 2013):  
¥ million: 359,766,497 (March); 393,957,453 (June); 417,303,078 (September); 458,484,253 (December) 
% of nominal GDP: 307.38% (March); 332.64% (June); 355.39% (September); December 365.40% 
(December) 
% of real GDP: 275.34% (March); 307.00% (June); 318.38% (September); 338.78% (December) 
Bond market capitalization (total outstanding am ount of bond issues, end of each quarter 2013):  
including Government Bonds, Fiscal Investment an d Loan Program Bonds, Local Government Bonds, 
Government-backed Bonds, FILP Ag ency Bonds, etc. , Bank Debenture Bond, and Corporate Bonds 
¥100 million: 11,476,488 (March); 11,663,887 (June); 11,705,899 (September); 11,783,802 (December) 
% of nominal GDP: 980.54% (March); 984.86% (Jun e); 996.92% (September); 939.15% (December) 
% of real GDP: 878.33% (March); 908.94% (June); 893.11% (September); 870.72% (December) 
Regulatory framework 
Supervisory authority and licensing organ:  
The FSA 
Additional criteria for foreign firms: for sales of inve stment trusts (Type I Financial Instruments Business), 
registration requires a corporation to be an entity that is carrying out business of the same sort in its home 
country in accordance with laws and regula tions of the corresponding foreign country. 
Period of validity of a licence: none 
Transferability of licen ces: not transferable 
Limitation of the number of providers: none 
Restrictions on foreigners buying and selling on the stock market: A member of the Financial Instruments 
Exchange Market is limited to either (1) a Financial In struments Business Operator (request for registration by 
the Prime Minister), (2) Authorized Transaction-at-Excha nge Operator (request for authorization by the Prime 
Minister), or (3) Registered Financial Institutions  (request for registration  by the Prime Minister) 
Other authorization required: obligation to register  branch offices for brokers. This measure is non-
discriminatory 
Operating conditions: WT/TPR/S/310/Rev.1 • Japan 
 
- 98 - 
 
  Requirements to use international accounting and disc losure standards: In October 2013, relevant Cabinet 
Office Ordinances were amended to eliminate the two requirements: "Being a listed company in Japan" and 
"Conducting financial or business activities internationally". As a result, a company may prepare its 
consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) if: 
all of the following requirements are met:  
(1) The Annual Securities Report contains a description of the special approach taken to ensure the 
appropriateness of the consolidated financial statements  
(2) Board members and employees who have sufficient kn owledge about designated international accounting 
standards are assigned, and the system  in which the consolidated financial statements can be prepared, based 
on the designated international ac counting standard, is maintained 
On 12 December 2008, in agreement wi th the European Union, the Japa nese GAAPs (Generally Accepted 
Accounting Principles) were evaluated to be equivalent to International Financial Reporting Standards (IFRS) as 
adopted by the European Union (EU). (Since January 2009, Japanese companies that are listed on markets 
within the EU have been able to use the Japane se GAAPs when making disclosures in Europe.) 
Provisions on shareholders' rights in  companies listed on stock exchanges: 
The Financial Instruments and Exchange Act does not provide any special regulations on shareholders' rights 
for companies listed on the financial instruments exchange.  
Provisions on companies' disclosure obligations:  
- for companies listed on financial instruments exchange: disclosure of company information in accordance 
with securities listing regulations; to protecting shareholders' rights, rules are described in the "Corporate 
Code of Conduct" 
- for general companies: (a) Offering disclosure: among pu blic offerings or secondary distributions of securities 
of which the total issue price or total distribution pric e is 100 million yen or more, the issuer must submit a 
securities registration statement to the Prime Minister  before a public offering or secondary distribution 
(Financial Instruments and Exchange Act, Article 4( 1)); also, the issuer must prepare and deliver a 
prospectus to investors before (or at the same time as) delivering the securities (Article 15(2)); (b) Ongoing 
disclosure: an issuer of listed securities on the financial instruments exchange or of a public offering or 
secondary distribution of securities, is obligated to subm it its security report after the end of each business 
year (within 3 months) to the Prime Minister (Financial Instruments and Exchange Act, Article 24(1)); a 
quarterly securities report must be submitted to the Prime Minister within 45 days of the end of every fiscal 
quarter (Article24-7(1)); and when making a public offe ring or secondary distribution of securities in a 
foreign state, these issuers must submit an extraordinar y report to the Prime Minister without delay (Article 
24-5(4)).  
Source: Information provided by the Japanese authorities. 
4.109.  The 2014 amendments of the Financial In struments and Exchange Act introduced several 
changes to the legislation regulating securities to take account of new developments in securities 
offers and trades and improve the overall attractiveness of Japan's financial and capital markets. 
The amendments include the introduction of me asures to promote the use of security-based 
crowdfunding, the introduction of a new trading system for non-listed shares, removal of the 
obligation on financial instruments business operators to have business years ending 31 March, 
exempting treasury stock from large sharehol ding reporting rules, and establishment of 
procedures for confiscation of electronic share certificates.68 
4.4.5  Pension and mutual funds 
4.110.  There were changes to regulations for pension mutual funds over the past few years. The 
FSA is the supervisory authority, assisted by the Minister for Health, Labour and Welfare for pension funds. For management and sales of investment trust, licensing takes the form of a 
registration procedure. Criteria taken into account are historical records of applicants, financial and 
organizational soundness, and minimum capital (¥50 million at least). Foreign companies that want to operate pension or mutual funds in Japan must have a branch or office in Japan and 
operate the same activity in their home country  under appropriate regulation and supervision. 
Licences have no fixed duration and are not transferable. There is no limitation on the number of providers. Box 4.1 details the main economic indicators and Box 4.5 the general regulatory framework of mutual funds and pensions fund services in Japan. 
                                               
68 FSA (2014). WT/TPR/S/310/Rev.1 • Japan 
 
- 99 - 
 
  Box 4.5 Market and regulatory regime for pension funds and mutual funds 
Recent changes: 
Some revisions including revision of the consolidation procedures and improvement of investment reports are 
going to be made from the viewpoint of making the regulation flexible to suit trends in international rules and 
changes in social and economic circumstances, and ensuring the supply of appropriate products in 
consideration of ordinary investors. 
Supervisory authorities: 
FSA registration required to carry out ma nagement and sales for investment trust.  
Responsibility for pension fund regulation and supervision:   
Minister for Health Labour and Welfare.  
Licensing criteria: 
Registration with the FSA. Conditions to be considered are: historical records of violations, appropriateness, 
and sufficiency of human resources organization; a board of directors, corporate auditors or a committee must 
be established; and capital must be more than ¥50 million.  
Additional licensing conditio ns for foreign companies: 
The corporation must be handling the same sort of bu siness in its home country in accordance with law and 
regulations of that country, and must  have a branch or office in Japan.  
Period of validity of a licence : none 
Transferability of licences: licences are not transferable 
Limitation on the number of providers: none  
Source: Information provided by the Japanese authorities. 
4.5  Telecommunications 
4.5.1  Features 
4.111.  Japan has a highly-developed and technologically-advanced telecommunications sector 
characterised by high investment, rapid adoption of new technologies, and readiness to switch off legacy systems: in 2011, Japan had more fibre-to-the-home subscriptions than the European 
Union; in June 2012 the last 2G network was switched off by KDDI; and NTT intends to switch to 
optical FTTH and cease copper based telephone and ISDN networks.
69 According to the Ministry of 
Internal Affairs and Communications (MIC), the information, communication technology (ICT) 
market was worth ¥82.7 trillion in 2011, accounting for 9% of all industries, and employed 
3.897 million people, or 6.9% of total employment.70 
4.112.  The telecommunications market in Japan ha s evolved considerably from the time when it 
was dominated by NTT and KDDI (which had monopolies on national and international 
telecommunications respectively). NTT East and NTT West combined now have slightly more than half the fixed-line market, and, although NTT DoCoMo remains the biggest supplier of mobile services, its net income has been relatively static for several years while SoftBank mobile and 
KDDI have expanded. NTT Corporation owns  100% of NTT East, NTT West, and NTT 
Communications, about 63.3% of NTT DoCoMo, about 54.2% of NTT Data, and owns or has 
holdings in many other companies both within and outside Japan.
71 The NTT Corporation, which is 
the largest telecommunications company in the world, is 35.7% owned by the Government and 
other public bodies (as at March 2014). 
4.113.  NTT East and NTT West are officially desi gnated as the dominant suppliers for subscriber 
lines, and NTT DoCoMo for mobile telephony. As stated in the last review, NTT East and NTT West 
are designated as universal service providers and are required to provide wired telephone services 
in all areas (i.e. analogue or, since April 2011, optical IP telephone equivalent in addition to public telephone services and emergency calls). Contributors to the universal service fund are carriers 
with annual sales greater than ¥1 billion which are interconnected with facilities installed by NTT 
East or NTT West to provide universal service. Calculation of the amount of compensation varies with the type of service. Funds are collected by the Telecommunications Carriers Association, 
                                               
69 Fasol G. (2014) and authorities. 
70 MIC (2013), pp. 48-49 . 
71 NTT Corporation online information. Viewed at: http://www.ntt.co.jp/ir/fin_e/index.html  
[December 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
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  which has been designated as the universal service support institution.72 The amount of 
expenditure approved for this fund in 2013 was ¥6.9 billion.  
4.5.2  Policy and legislation 4.114.  The Strategic Headquarters for the Promotion of an Advanced Information and 
Telecommunications Network Society (IT Strategic Headquarters) in the Cabinet is responsible for 
general strategy on information and telecommunications technology. In June 2014 the Headquarters revised the Declaration to be the World's Most Advanced IT Nation . The Declaration 
noted: that a lot of progress had been made in installing advanced infrastructure and emphasised 
the need to use this infrastructure to its full potential; that eGovernment development could more 
efficient and better coordinated among public agen cies; and that IT was critical in disaster 
management and played an important role in areas like rural development and agriculture.
73 
4.115.  The MIC is the government agency primarily responsible for telecommunications policy and 
legislation, and for regulating the sector (Box 4.6). The Ministry publishes an annual white paper 
describing recent developments in ICT and public policy for the sector. MIC has also been the 
agency responsible for assigning spectrum for communications, including the 2012 allocations of 
spectrums for LTE mobile phones. 
Box 4.6 Market structure and regulatory regime for telecommunications sector, 2013 
Economic data 
Main actors: 
Companies providing value-added telecom services: 318 carriers are registered with the Minister; and 
16,193 carriers have submitted notifications (up to 1 September 2014).  
Market leaders for fixed telecom services: NTT East an d NTT West (combined market share for fixed telecom 
service 54.8%, (June 2014)). 
Market leaders for mobile services (cellular phones, PHS, and BWA): NTT DoCoMo (39.9%), KDDI (including 
Okinawa Cellular, 25.8%), SoftBank Mobile (22.9 %), (June 2014). 
Main internet access providers (incl. ADSL, fibre-to -home providers, and cable- based access): NTT group 
(27.9%), vendor group (26.8%), KDDI group (17.9%), (March 2014). 
Foreign ownership participation: Ex cept for the Nippon Telegraph and Telephone Corporation, there are no 
restrictions in Japan's telecommunications carriers. Fo reign ownership shares of listed telecom companies are 
not available. 
State ownership: Nippon Telegraph and Telephone Corporation – 33.3%  
Tariffs: (evolution since Japan's last TPR (2013)) 
Local services: no changes on basic monthly charges or lo cal call rate (subscriber lines) of NTT East and NTT 
West. 
Mobile services: NTT DoCoMo, Type S Value: basic monthly service rate – ¥3,000; call rate – ¥108 per 
3 minutes (excluding tax). Basic monthly service rate includes a communications allowance of ¥2,000 
(excluding tax). NTT DoCoMo, Kakehodai-plan (call-free plan): basic monthly service rate – ¥2,700; call rate – 
free (this service began in November 2014). 
Internet services: Ministry of Internal Affairs and Communications does not regulate the internet connection 
fee. No changes. 
Interconnection rates: (monthly charge per li ne) for optical fibre significantly lowered to: 
- Dry copper local loop: NTT East: ¥1,269, NTT West: 1,345 (in 2014) 
- Line sharing local loop: NTT East: ¥87, NTT West: ¥88 (in 2014) 
- Single star optical fibre: NTT East : ¥3,159, NTT West: ¥3,206 (in 2014) 
- Shared-access optical fibre: NTT East: ¥2,808, NTT West: ¥2,847 (in 2014) 
- Mobile phone interconnection rates: significantly lowered, e.g. NTT DoCoMo: ¥24.3/3 min. (in 2009), 
¥10.26/3 min. (in 2013). 
Establishment of new companies, merg ers or closures since Japan's TPR:   
Registered telecommunications carriers decreased in nu mber by 6, notified telecommunications carriers 
increased in number by 564 (8 newly registered, 1,119 newly notified) (1 Sep. 2014).  
Regulatory framework  
Interconnection: 
Recent or planned changes: none 
Complaints filed or resolutions effected for intercon nection disputes among operators: one request for the 
Minister of Internal Affairs and Communications to start negotiations since 2010. 
                                               
72 WTO document WT/TPR/S/276/Rev.1, 18 June 2013, paragraphs 4.71-72. 
73 IT Strategic Headquarters (2014). WT/TPR/S/310/Rev.1 • Japan 
 
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  Competition policy: 
Results of the "competition review in the telecom business field (2013)" : 
Fixed telephone and dedicated service markets: a single operator has strong market power and the possibility 
of using its position to exercise market power; MIC es timated that regulations in the market are sufficient and 
WAN service has strong competitive pres sures in the corporate service market. 
Toll bypass telephony, cellular phon e (including PHS and BWA, broadband , FTTH, and ADSL market, a single 
operator is in a position to exercise its market power, or multiple carriers are in a position to exercise their 
market power in an alliance under an oligopoly; MIC estimates that the existence of regulations and 
competitive pressures from the other service are sufficient.  
050-IP telephony and WAN service market: multiple operator s are in a position to exercise their market power 
in an alliance under an oligopoly; MIC estimates that the existence of regulations and competitive pressure in 
050-IP telephony and WAN service markets are sufficient. 
ISP market: MIC estimates that no operator can use market power.  
Japan Fair Trade Commission  regulations and actions: 
The JFTC establishes Guidelines Concerning the Interpretation of "Specific Business Field" as defined in the 
Provisions of "Monopolistic Situation" in the Antimonopo ly Act. The JFTC, as appropriate, monitors trends of 
production, sale, price, manufacturing costs, an d technical innovations, and profit ratios.  
As for the telecommunication sector, fixed telecom and mobile telecom have been shown in the annex since 
2004, and broadband services since 2010. 
Ministry of Internal Affairs and Communications  promotes competition in the telecom market. 
Dominant suppliers: NTT East and NTT West (subscriber lines) NTT DoCoMo (mobile phones) 
Other regulatory aspects: 
Regulatory supervision: For carriers installing Category I designated telecommunications facilities – functional 
separation of the facility department and the sales depa rtment introduced to ensure appropriate supervision of 
subsidiaries and appropriate manage ment of information obtained thro ugh the business activities of 
interconnection (Telecommunications Business Act,  Article 31; the Ordina nce for Enforcement of 
Telecommunications Business Act, Article 22). 
Facility sharing: no changes 
Local loop unbundling: no changes 
Number portability: system introduced by Article 4 of Rule of Interconnection, no changes since 2011 
Spectrum management: Licence required from the Minister  of Internal Affairs and Communications to operate 
a radio station. However, if a radio station meets a specific requirement it may be operated only by registration 
(without a licence). 
Mobile interconnection: amendment to the Telecommunications Business Act in December, 2010: rules for 
interconnection accounting introduced for the telecom ca rriers with Category II de signated telecommunications 
facilities in March 2011 (Telecommunications Act as amended, Article 34).  
Mobile roaming rates (wholesale and retail): No regulation 
Accounting rates: no changes 
Licensing: Operators of telecommunications businesses with large-scale telecommunications circuit facilities 
must be registered by the Minister of Internal A ffairs and Communications; op erators with small-scale 
telecommunications circuit facilities or without telecommunic ations circuit facili ties must submit a notification to 
the Minister.  
Universal service 
Beneficiaries:  Telecommunications carriers that provide universal services and are designated by the Ministry 
of Internal Affairs and Communications (MIC) as carriers meeting the requirements (eligible 
telecommunications carriers: NTT East and NTT West). 
Contributors:  Telecommunications carriers that have connections  to universal service facilities of NTT East 
and NTT West (limited to carriers with sales of ¥1 billion or more) 
Services covered : (1) analogue fixed telephones (access lines for analogue fixed telephones) or optical IP 
telephone equivalent with analogue fixed telephones  (included in universal services from April, 2011); 
(2) Category I public telephone service; (3) emergency calls (dial 110, 118,119).  
Expenditure  (approved in 2013): total compensation for NTT East and NTT West – ¥6.9 billion 
Method of calculation:  
- for access lines for analogue fixed telephones: benchmark method for the top 4.9% of the high-cost regions; 
when the cost per line exceeds the national average cost  + double standard deviations, part of the cost will 
be covered by the universal service fund 
- category I public telephone service: cancel-out cost-revenue calculation method 
- emergency calls: costs of emergency lines that correspon d to the top 4.9% high cost lines out of all access 
lines for analogue fixed telephones are compensated 
- optical-IP telephones equivalent to analogue fixed telephones: excluded from compensation. 
Management : Telecommunications Carriers Association (universal telecommunications service support 
institution) is responsible for collecting contributions from carriers and providing the subsidies. The institution 
must obtain permission from the MIC regarding the annual subsidies and contributions. 
Specific tax incentives regime for the telecommunication sector:  no changes. 
Source: Information provided by the Japanese authorities. WT/TPR/S/310/Rev.1 • Japan 
 
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  4.116.  The main laws setting the legal basis fo r the regulation of telecommunications include: 
• The Wire Telecommunications Act of 1953 (last amended in 2010) for wired 
transmissions, including copper and fibre transmissions, including fixed telecoms 
services, cable television and wired broadband;  
• The Radio Act of 1950 (last amended in 2014) for wireless transmissions, including 
mobile phones, terrestrial and satellite television broadcasting infrastructure, and some wifi networks; 
• The Telecommunications Business Act of 1984 (last amended in 2014) which covers 
telecommunications businesses; and 
• In addition to these laws, secondary legislation through Cabinet Orders, Ministerial 
Ordnances, etc. set out detailed rules for their application and interpretation. 
4.6  Transport 
4.6.1  Maritime transport 4.117.  Japan depends on maritime transport for its trade with 88% of imports and 71% of exports 
by value carried by sea and 967 million tonn es are transported by ocean-going vessels. 
Furthermore, reflecting the fact that Japan is made up of numerous islands, coastwise shipping accounts for a significant proportion of domestic cargo transport with 366 million tonnes of cargo 
transported by coastwise shipping in 2012.
74 According to the Japan Federation of Coastal Shipping 
Associations, coastal shipping accounted for 32% of the tonne-kilometres for domestic transport in 2009.
75  
4.118.  According to UNCTAD, the relatively high proportion of high-value vessels in the Japanese-
owned fleet means that, in value terms, it is probably the highest in the world at nearly 
US$100 million. According to UNCTAD's report, on 1 January 2013, the fleet of Japanese flagged 
vessels and beneficially-owned vessels sailing under  foreign or international flags was the second 
largest in the world in tonnage terms at 223.8 million tonnes for nearly 4,000 vessels.76 According 
to the Japanese authorities, the fleet of Ja panese-flagged and owned vessels greater than 
2,000 tonnes was 2,848 vessels for a total tonnage of 190.8 million tonnes (Table 4.21) 
Table 4.21 Maritime transport, main  economic indicators, June 2012 
Fleet Vessels (number) Tonnage (DWT) 
(million tonnes) (% of world tonnage) 
National flag 150 18.61 .. 
  Of which foreign controlled 0 0 .. 
Beneficially owned fleet under foreign flags 2,698 172.18 .. 
Merchandise trade Volume ('000 
tonnes, except for 
containers: 
'000 TEU) 
2012 Value (¥ billion) 
2012 % of Japan's 
international trade (all 
mode of transport) 
FY2009 
Imports Exports Imports 
c.i.f. Exports 
f.o.b. Imports Exports 
International maritime freight trade 988,103 280,917 70,689 63,748 88.1 71.0 
  Of which containers 8,770 8,750 24,330 29,368 39.9 43.9 
  Of which transhipped 130 135 .. .. .. .. 
  Of which dry bulk 338,687 74,583 10,469 7,545 15.3 11.3 
  Of which liquid bulk 378,805 25,358 24,582 3,100 31.6 1.7 
Domestic maritime freight trade 705,939 721,417 .. .. .. .. 
  Of which conducted under a waiv er regime .. .. .. .. .. .. 
                                               
74 MIC (2014), Table 12-16 and 12-17 and Japanese authorities. 
75 Japan Federation of Coastal Shipping Asso ciations online info rmation. Viewed at: http://www.naiko-
kaiun.or.jp/e/about/about_cargo.html  [December 2014]. 
76 UNCTAD (2013),  pp. 42-43. WT/TPR/S/310/Rev.1 • Japan 
 
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  Privately managed terminals Type of 
cargo Managing company(ies)/ 
Nationality Volume 
(TEU) Date & 
duration of 
the 
contract 
Tokyo (some) Container Tokyo Port Terminal Corporation 
/Japanese 4,510,778 
(volume 
2013) 01.04.2008 
Hakata (some) Container HAKATA PORT TERMINAL Co. Ltd 
/Japanese 772,123 
(volume 
2013) 20.02.2014 
Ibaraki Port Hitachinaka District (some) Container Ibaraki Port Authority Corporation 
/Japanese 7,605 
(volume 
2012) 06.2000 
.. Not available. 
Source: Information provided by the Japanese authorities. 
4.119.  Although the Japanese-owned fleet may be the most valuable and one of the largest in the 
world, it declined significantly from 1995-2005. To address the decline, the Government has introduced several support measures, including tax incentives and shared purchase programmes, (see below) and, since 2005, the rate of decline in the number of vessels has slowed while the 
total tonnage has increased.
77  
4.120.  Maritime shipping policy and national legislation are the responsibility of the Maritime 
Bureau in the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The Maritime Bureau 
represents Japan at the International Maritime Organization. The Bureau is responsible for setting 
standards, security, regulation, etc.  
4.121.  Under the MLIT is the Japan Transport Safety Board, which was formed in 2008 with the 
merger of the Japan Marine Accident Inquiry Agency and the Aircraft and Railway Accidents 
Investigation Commission. The National Maritime Research Institute, an incorporated administrative agency under MLIT is a re search centre for maritime technologies. 
4.122.  The Japan Maritime Center, which is described  as a public interest incorporated foundation, 
contributes to policy formation through research and consultation with different stakeholders. The 
Center was established in April 2007 with the merger of the Japan Maritime Foundation and the Japan Maritime Development Association with funding from the Japanese Shipowners' Association 
and the Japan Federation of Pilots' Associations.
78 
4.123.  The main laws covering maritime transport of goods are: the Basic Act on Maritime Policy 
of 2007, the Carriage of Goods by Sea Act of 1992; the International Carriage of Goods by Sea Act 
of 1957; the Maritime Traffic Safety Law of 1972; the Port and Harbour Act of 1950; the Port 
Regulations Act of 1948; and the Ship Safety Law.  
4.124.  In March 2012, MLIT established the Ocean Policy Panel to implement the Basic Plan on 
Ocean Policy of 2008.79 The Plan and Panel address many aspects of marine policy including 
exploration and exploitation of minerals, fisher ies, and the environment, as well as maritime 
transport. On maritime transport, the Policy recogn ises the challenges facing maritime transport in 
Japan, particularly the decline in the number of Japanese-flagged vessels, the aging of the 
maritime workforce, and the increasing competition in the region.80  
4.125.  Japan does not discriminate against foreign participation in international maritime services 
and accords national treatment (Table 4.22). However, cabotage restrictions mean only Japanese 
flag carriers may carry goods and passengers from  one Japanese port to another although, under 
treaties of friendship, commerce and navigation, Japan allows ships to access cabotage services on a reciprocal basis by obtaining permits from MLIT.  
                                               
77 MIC (2014), Table 12-15. 
78 Japan Maritime Center online information. Viewed at: 
http://jpmac.or.jp/english/introduction.htmlJapan  [December 2014]. 
79 MLIT (2012), p. 118. 
80 MLIT (2008), pp. 10, 14-15, 26. WT/TPR/S/310/Rev.1 • Japan 
 
- 104 - 
 
  4.126.  In 2008, a tonnage tax system was introduced which gave oceangoing shipping companies 
the option of switching away from tax on profit s to a tax system based on tonnage (Table 4.22). 
The scheme was to operate until end-FY2013 but it has been extended until end-FY2018 and the scope extended to included foreign-flagged vessels operating by Japanese shipping firms and their 
overseas subsidiaries, provided the flag can be  changed to Japan following a navigation order 
under maritime transport law. 
4.127.  The Japan Railway Construction, Transportation and Technical Agency (JRTT) provides 
support to coastal shipping by sharing the cost and ownership of vessels, with JRTT taking 70-90% 
of costs and ownership. The domestic shipping co mpany pays a usage fee to JRTT for the period of 
joint ownership which is 7-15 years. JRTT is an independent administrative agency which was created in 2003 by integrating the Japan Railway Construction Public Corporation (JRCC) and the 
Corporation for Advanced Transport and Technology (CATT – which had incorporated several other 
entities including the Maritime Credit Corporatio n and the Association for Structural Improvement 
of the Shipbuilding Industry). At the end of FY 2013, JRTT owned 347 ships with a joint-ownership 
value of ¥365.3 billion. JRTT also provides subsidie s to coastal shipping companies for the take up 
of new technologies, such as electric propulsion systems, as well as support for ferry services to remote islands. In FY2012 and FY2013, subsidies for Practical Application of Advanced Ship 
Technologies were ¥95.7 million and ¥45.7 million respectively.
81  
Table 4.22 Trade-related maritime transport policies 
Competition policy 
Scope of the anti-trust immunity: 
Marine Transportation Law, Article 28 item (4) Immunity "to conclude an arrangement or agreement or to conduct concerted act concerning the fares or charges and other transportation conditions, routes, alloca tion of ships as well as sharing of shipping between 
a ship operator and other ship operators on routes between ports in Japan and a territory other than Japan", i.e. conferences, agreements, discussion agreements, stabilization agreements and vessel sharing agreements and consortia in liner shipping an d tramp pools in bulk shipping. 
Filing requirements: 
Marine Transportation Law Article 29-(2) 
"Any ship operator shall, if he/she intends to engage in the act provided for in Article 28 item (4) or to alter the 
content thereof, notify  beforehand Minister of Land , Infrastructure, Transport an d Tourism to that effect". 
Marine Transportation Law Article 50 
"Any person to whom any of the following items applies shall be liable to a fine of not more than one million 
yen, item (24) Anyone who has taken action under item  4 of Article 28, or has altered the content of such 
action, without submitting notification under the provisio ns of Article 29-(2), Paragraph 1, or who has made a 
false notification under the same provisions". 
Last review concluded: FY2010, by the MLIT  in consultation with JFTC, no changes.  
Next planned review: FY2015 
Tonnage tax: Introduced in 2008 until the end-FY2013 (M arch 2014); characteristics unchanged corporate tax 
rates but net profit deemed to be:  - for vessels less than 1,000 NT, ¥120/100 NT;  
- for vessels over 1,000 and up to 10,000 NT, ¥90/100 NT;  
- for vessels over 10,000 and up to 25,000 NT, ¥60/100 NT; and - for vessels over 25,000 NT, ¥30/100 NT. The tonnage tax system has been extended to end- FY2018 (March 2019) and the scope expanded to cover 
"deemed-Japanese-flagged-vessel"* with  tax rates of one and a half times those for Japanese-flagged vessels. 
(* "deemed-Japanese-flagged-vessel" me ans a foreign-flagged-vessel operated  by Japanese shipping firm and 
owned by their overseas subsidiaries which can change its flag to Japan immediately in case of issuing order of 
navigation in accordance with maritime transport law.) 
Other support measures:  
- Additional depreciation of 18% ca n be applied to Japanese-flagged ve ssels; may opt for either declining-
 balance method or the straight-line method. 
- "roll over relief" i.e. deferred taxation of capital gains in case of sale of old vessels replaced by new vessels; 
 system extended in 2014 until the end of FY2017. 
- Coastal Shipping Tentative Measures Program:  scrapping incentives FY2013: Not applicable. 
- Coastal shipping joint ownership scheme under JRTT. 
International ship regime (ISR): 
Ship registration tax under the ISR regime and the Japanese ordinary register (for a 85,000 GT bulker) 
(1) ISR vessels – ¥38.8 million (2) non-ISR vessels – ¥44.3 million In order to receive tax relief, an ISR vessel must co rrespond (1) and (2) of the following requirements, and 
must meet at least (3) or (4) of the following: 
                                               
81 JRTT (2013),  pp. 10-15 and 26; and the authorities. WT/TPR/S/310/Rev.1 • Japan 
 
- 105 - 
 
  Competition policy 
(1) the vessel must be more than 2,000 GT; 
(2) the vessel must navigate in the ocean-going sea areas; 
(3) the vessel must board non-Japanese seafarers with  a certificate issued by the Minister of Land, 
 Infrastructure, Transport and Tourism; (4) the vessel must be LNG or RO-RO type. 
Companies may apply for the ISR scheme as long as they  are established under Japanese law, regardless of 
their shareholders. 
Passenger transport: 
Remote island sea routes are subsidised by region al public transport for management and improvement 
projects and passenger fares. 300 sea routes were in service at the end of FY2011, 120 of which are 
subsidised.a According to the authorities, the Government subsidizes the Projects for Securing and Maintaining 
Regional Public Transport for secure and maintain bus and demand-responsive transport and remote island sea 
and air routes, which are optimal means of transport that  fill regional needs are supported in those regions 
where the continued availability of networks of regional transport is endangered. The total value of subsidies is 
¥30.6 billion. 
a MLIT (2012) , p. 138. 
Source: Information provided by the Japanese authorities. 
4.128.  Entry into the port transport sector requires permission from MLIT, and port transport 
charges are subject to prior notification proced ures. However, licensing requirements and an 
economic needs test were abolished in 2006 and replaced by a permission requirement system 
based on technical and financial abilities.82 Under the Port and Harbour Act, port development, 
management and operation are entrusted to local public organizations83 although private 
management of port terminals is allowed and open to foreign investors. 
4.6.2  Air transport 4.129.  Japan has a well-developed air transport se ctor with approximately 61 million international 
passengers, 86 million domestic passengers, and 95 million tonnes of international cargo 
in FY2012. There are 97 airports in service in the country but the top five accounts for nearly all traffic and the top two for over half: Narita International Airport accounted for 62.2% of 
international passengers; and Tokyo International Airport (Haneda) for 63.8% of domestic 
passengers. After several years of declining domest ic traffic and fluctuating international traffic, 
the increase in passenger numbers in FY2012, particularly the number of international passengers which was the highest ever, was partly credited to the increased activities of low-cost airlines.
84 
4.130.  In 2008, the Airport Law of 1956 was amen ded to apply three categories of airports: 
corporate airports which are administered by airpor t companies, national airports administered by 
MLIT, including join use with the Japan Self Defence Force and U.S. forces; and municipal airports 
administered by local governments. Of the 97 airp orts in Japan, about 28 are controlled by MLIT.  
4.131.  The five international airports are: 
• Tokyo International Airport (Haneda Airport) is owned by MLIT, which also operates the 
airside of the airport while the landside is operated by various private companies; 
• Narita International Airport is owned and operated by Narita International Airport 
Corporation which is 100% government-owned; 
• Chubu Centrair International Airport is owned and operated by the Central Japan 
International Airport Company 40% of which is owned by the Government, 10% by 
local authorities, and 50% by others, including private corporations; 
• Kansai International Airport and Osaka International Airport which, since July 2012, 
have been operated by the New Kansai International Airport Corporation (NKIAC) which 
was established under the Act on the Integrated and Efficient Establishment and 
                                               
82 WTO document S/C/N/571, 5 October 2010.  
83 Ports of Singapore Authority has invested in Hibiki port. 
84 MLIT online information. Viewed at: http://www.mlit.go.jp/koku/15_hf_000030.html  [August 2014]. WT/TPR/S/310/Rev.1 • Japan 
 
- 106 - 
 
  Management of Kansai International Airport and Osaka International Airport of 2012. 
NKIAC is fully government-owned.85,86,87 
4.132.  Under the Act on Operation of National Airports Utilizing Skills of the Private Sector 
of 2013, MLIT began the process for the privatisation of the operation of Sendai Airport with 
guidelines for applications published in June 2014. The plan is to complete selection 
in August 2015, establish the operating right in November 2015, and to begin operations in March 2016.
88  
4.133.  In September 2014, NKIAC selected the Qualified Project for Airport Operation of Kansai 
International Airport and Osaka International Airport under the Act on Promotion of Private Finance Initiative and the Act for Integrated and Efficient Establishment and Administration of Kansai International Airport and Osaka Internationa l Airport. The Project outlines the process for 
selecting a private business operator for the operations at the airports with the intention of 
completing the process of selecting and granting operating rights in August 2015 and commencement of the project in January 2016.
89 
4.134.  The Civil Aviation Bureau in MLIT is responsible for air transport policy, preparing 
legislation, setting standards, providing air navigation services, security, aeronautical regulation, meteorology, etc. The Bureau also sets uniform la nding charges for airports it owns and approving 
them for others.  
4.135.  There are 26  commercial airlines based in Japan, including All Nippon Airways (ANA) and 
the flag carrier Japan Airlines (JAL) which are the seventh and eleventh biggest airlines in the world in terms of sales
90 (Box 4.7). 
Box 4.7 Japan's market and regulatory regime for air transport subsectors, 2014 
Computer reservation services  
General regulatory framework 
No specific market regulations, hence no monopoly gran ted or compulsory use of a specific system. The sector 
is subject to the generic legislation, the Antimonopoly  Act (section 3.3.4). No re cent regulatory changes. 
Economic characteristics 
All global players (Sabre, Galileo, WorldSpan, Amadeus)  present on the market, two national providers: Axess 
(JAL) and Infini (Abacus-ANA). No detailed statistical data available. 
Selling and marketing of air transport services  
General regulatory framework 
No specific regulations on the sale by foreign airlin es of their tickets, no recent regulatory changes.  
Aircraft repair and maintenance 
General regulatory framework: the Airc raft Manufacturing Industry Act does  not impose any requirements on 
repair or maintenance of domestic planes; establishment is conditional on a non-discriminatory economic 
needs test. No recent regulatory changes.  
Economic characteristics: 11 FAA-certified and 11 EASA-certified repair stations. No detailed  statistical data 
available. 
Ground handling services 
General regulatory framework: self-h andling and mutual handling are allowed (Aeronautics Law Article 102, 
104, 113-2, 15 July 1952; Civil Aeronautics Regulations Japan Article 211, 212, 214, 222, 14 August 1952); 
third-party handling allowed with no quantitative threshold or limitation to nominatively designated airports. 
Differentiated situation with some bilateral partners (e.g. with the Russian Federation and with Uzbekistan). No 
recent regulatory changes.  
Economic characteristics: foreign third-party handlers are present in Japan, e.g. at Narita Airport, Kansai 
Airport, Centrair Airport. No deta iled statistics data available. 
 
                                               
85 ICAO (2012). 
86 Japan Credit Rating Agency Ltd (2012). 
87 MLIT online information. Viewed at: http://www.mlit.go.jp/koku/15_hf_000033.html  
[December 2014]. 
88 MLIT (2014). 
89 NKIAC online information. Viewed at: http://www.nkiac.co.jp/en/concession/index.html  
[November 2014]. 
90 Forbes (2014). WT/TPR/S/310/Rev.1 • Japan 
 
- 107 - 
 
  Airport management services 
General regulatory framework: All airports are for pub lic use; there are some airports managed by private 
corporations in Japan.  
Economic characteri stics: 97 airports.  
Air freight forwarding 
General regulatory framework: Air freight forwarding in Japan reserved for Japanese  nationals; international 
air freight forwarding subject to a pproval based on reciprocity test. 
Non-transport activities/aerial work 
General regulatory framework: reserved to national oper ators within Japan, prior notification procedure for 
foreign investment.  
The Civil Aeronautics Act limits a foreign representative of an aerial work service operator, or foreign voting 
rights or officers to less than 1/ 3 of an aerial work service operator  (including their holding company). 
Commercial aviation  
General regulatory framework 
National establishment rules: the Civil Aeronautics Act limits a foreign representative of a national air carrier, 
or foreign voting rights or officers to less than 1/3 of  a national air carrier (including their holding company). 
Bilateral agreements 
See Table 4.23 
All cargo 
No specific market-access policy, th e "known shipper/regulated agent" se curity regime was introduced in 
October 2005. 
Charter 
Foreign operators of passenger charter flights requir e permission from the MLIT. MLIT generally permits 
passenger charter flights by foreign airlines , except in case of reciprocity problems. 
Domestic traffic 
Reserved to national carriers. New entrants are not restricted. Air carriers may decide freely on routes, 
capacities, and prices after notifying the MLIT, except fo r routes and capacities to/ from congested airports like 
Haneda, Narita, Itami, and Kansai. 
Slot allocation 
According to IATA rules, planned expansion of number of slots at Narita (+30,000 by FY2014 at the earliest; 
current total 270,000). 
Economic characteristics 
ANA HOLDINGS: 231 aircraft, operating revenues ¥1,601.0 billion for FY2013, no shareholder with more than 
5%; JAL: 222 aircraft, operating revenues ¥1,309.3 billion for FY2013, no shareholder with more than 5%; and 
Nippon Cargo Airlines: 12 aircraft, turnover ¥88.9 billion in FY2013, owned 100% by Nippon Yusen Kaisha.  
4 low-cost carriers: Peach Aviation (2011, ANA HOLDINGS 38.7%, first Eastern Investment group 33.3%, INCJ 
28%); Vanilla Air (2011, ANA HOLDINGS 100%); and Jetstar Japan (JAL, Qantas 33% each, Mitsubishi, 
Century Tokyo Leasing 16.7% each); Spring Airlines Japan (2013, SPRING AIRLINES 33%, others 67%). 
Source: Information provided by the Japanese authorities. 
4.136.  In January 2010, JAL filed for support from the Enterprise Turnaround Initiative 
Corporation (ETIC) and for corporate reorganization and protection from creditors.91 Following a 
restructuring, which included an investment of ¥35 0 billion by ETIC and a write-off of debt by the 
main creditors, reportedly of over ¥500 billion, ETIC disposed of its 96.5% holding in JAL through 
an initial public offering held in September 2012.92, 93  
4.137.  The increase in passenger numbers in FY2012 has been partly attributed to the entry of 
low-cost airlines94 with several low-cost carriers now operating in Japan. Official policy is to 
encourage their expansion through a review of technical regulations to allow faster turn-around times and through the construction of dedicated terminals.
95 Expansion has also been driven by 
new open skies agreements (Table 4.23) and aided by the increase in capacity at some of the 
                                               
91 JAL (2010). 
92 The Economist (2012), Japan Airlines – From bloated to floated, 15 September. 
93 ETIC, which was established in October 2009 as a wholly owned subsidiary of the Deposit Insurance 
Corporation of Japan (DICJ) was reorganized in Marc h 2013 and renamed the Regional Economy Vitalization 
Corporation of Japan (REVIC). DICJ  online information. Viewed at: 
http://www.dic.go.jp/english/e_kikotoha/e_kogaisha/index.html  [December 2014]. 
94 MLIT online information. Viewed at: http://www.mlit.go.jp/koku/15_hf_000118.html  
[December 2014]. 
95 MLIT (2012), p. 158. WT/TPR/S/310/Rev.1 • Japan 
 
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  main airports such as Narita which has increased from 200,000 slots in 2008 to 270,000 in 2013 
with the extension of one runway, and the introduction of simultaneous parallel independent departures. 
4.138.  Airports in Japan have been adapting to cater for low-cost airlines. Kansai International 
Airport has a one low-cost carrier (LCC) terminal in operation since October 2012 and a second 
under construction which is planned to open in  the second half of 2016. Narita International 
Airport has built interim LCC reception facilities with construction of a LCC terminal in progress 
with full completion scheduled for 8 April 2015; and Naha Airport's interim LCC terminal, built by 
leveraging existing facilities came into operation in October 2012. 
4.139.  Japan has negotiated and agreed open skies agreements with eleven countries in 2012, 
and three in 2013. However, the degree of liberali zation varies somewhat from one agreement to 
another and no agreement has included 7
th freedom or cabotage (Table 4.23). 
Table 4.23 Bilateral air transport agreements, 2014 
Partner Date 5th 7th Cab. Coop. Desig. With-
holdingPricing Capacity Stat.
United States  25.10.2010 Yes No No Yes Multi SOE DD/ZP FD (except HND) No
Korea, Republic of 22.12.2010 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Singapore 19.01.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Malaysia 24.02.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Hong Kong, China 18.05.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Viet Nam 09.06.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Macau, China 14.07.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Indonesia 11.08.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Canada 14.09.2011 Yes No No Yes Multi SOE DD/ZP FD (except HND) Yes
Australia 29.09.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Brunei Darussalam 28.10.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Chinese Taipei 10.11.2011 Yes No No Yes Multi SOE CoO/ZP FD (except HND) No
United Kingdom 20.01.2012 Yes No No Yes Multi CoI DD/ZP FD (except HND) Yes
New Zealand 16.02.2012 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Sri Lanka 23.03.2012 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Finland 08.06.2012 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
France 07.07.2012 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
China 08.08.2012 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Netherlands 22.08.2012 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
Sweden 11.10.2012 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
Denmar k 11.10.2012 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
Norway 11.10.2012 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
Thailand 21.11.2012 Yes No No Yes Multi SOE CoO/ZP FD (except HND) No
Switzerland 23.07.2013 Yes No No Yes Multi CoI CoO/ZP FD (except HND) Yes
Philippines 13.09.2013 Yes No No Yes Multi SOE CoO/ZP FD (except HND) Yes
Myanma r 24.10.2013 Yes No No Yes Multi SOE DA/ZP FD (except HND) Yes
Austria 20.02.2014 Yes No No Yes Multi CoI DD/ZP FD (except HND) Yes
Note: "5th" stands for fifth freedom rights; "7th" for seventh freedom rights; "Cab" for cabotage; "Coop" for 
cooperation clauses; "Desig." for designation; Mu lti" for multi-designation; "SOE" for substantial 
ownership and effective control; "C oI" for Community of Interest; "DD" for dual disapproval; "CoO" for 
country of origin; "DA" for Double Approval; "ZP" fo r zone pricing; "FD" for free determination; "HND" 
Haneda Airport; and "Stat" for statistics. 
Source: Information provided by the Japanese authorities. 
4.6.3  Rail transport 
4.140.  Japan has an extensive rail network of over 20,000 km length carrying over 8,837 million 
passengers or 246,942 million passenger kilometers in 2011 (Table 4.24) making it one of the most extensive and most intensively used railway systems in the world. 
Table 4.24 Railway transport in Japan, FY2011 
Interurban network Total length 
(km) Electrified 
(km) Double tracked 
(km) Gauge
(mm) Traffic (million) 
Total railway network  20,124 12,366 8,386 1,067
 or 1,435 Passengers: 8,837
Passenger-km: 246,942 
Freight companies 8,337 Unknown 1,067 Tonnes: 29.8 
Tonne-km: 19,879 
Source: Ministry for Land, Infrastru cture, Transport, and Tourism. WT/TPR/S/310/Rev.1 • Japan 
 
- 109 - 
 
  4.141.  There are over 100 different railway companies operating in Japan. The six passenger rail 
companies and one freight company formed from th e breakup of the Japanese National Railways 
in 1987 own most of the railway lines, locomotives, and rolling stock. The six passenger rail companies in the JR Group are vertically-integrated regionally-based companies (although 
operating inter-regional services). Three of them were fully privatized (JR East, JR West, and JR 
Central). No shareholder in any of the three ow ns more than 5% of shares and there is no 
restriction on foreign ownership. The other three (JR Hokkaido, JR Shikoku, and JR Kyushu) and JR 
Freight are owned by the Japan Railway Construc tion Transport and Technology Agency (JRTT) 
which is an incorporated administrative agency (Table 4.25). In addition to the three passenger 
rail companies and the freight rail company, JRTT  owns the Railway Technical Research Institute 
(RTRI) and the Railway Information System (JR System) which provide supporting services. In 
addition, JRTT's functions include railway construction, providing rail and shipping subsidies, 
shipbuilding, and disposing of land previous ly owned by Japanese National Railways.
96  
4.142.  Since 1997, JRTT has been responsible for the construction of high-speed railways 
(shinkansen ) which are two-thirds funded by central government, and one-third by local 
governments. JRTT owns and maintains the lines and leases them to the operators who own and 
maintain the locomotives and rolling stock.97 The lease fee is decided through negotiations 
between the operator and JRTT in association with MLIT based on predicted economic 
effectiveness, such as expected profit, where such lines are adopted. 
Table 4.25 JR Group, FY2013 
Company Operating 
revenue 
(¥ billion) Operating 
income 
(¥ billion) Revenue from 
passengers or 
freight 
(¥ billion) Network length
(km) Traffic 
(Passenger-km million) 
Shinkansen Conventional Shinkansen Conventional 
JR East 2,702.9 406.8 1,696.4 1,134.7 6,377.9 20,863 110,247
JR Central 1,652.5 494.6 1,214.9 552.6 1,418.2 46,930 51,070
JR West 1,331.0 134.6 780.6 644.0 4,371.7 17,618 38,277
JR Hokkaido 82.8 37.2 .. .. 2,457.7 .. ..
JR Shikoku 28.0 10.2 .. .. 855.2 .. ..
JR Kyushu 196.1 1.9 .. 288.9 1,984.1 .. .
JR Freighta 187.8 7.8 104.2 .. 8,197.9 .. 19,300 
tonne-km 
million 
.. Not available. 
a JR Freight online information. Viewed at: http://www.jrfreight.co.jp/englis h/corporate/financials.html  
[September 2014]. 
Note: JR Freight FY2009. Source:  Annual reports, Japanese authorities. 
4.143.  The major cities in Japan usually have an urban metro system which is usually wholly- or 
partly-owned by the municipality  although they may also include a number of companies. In the 
Tokyo area there are eleven major railways, incl uding JR East, Tobu Railway, Tokyo Metro, and 
Toei with a total network length of 2,658 km, 167,013 million passenger km, and revenue 
of ¥2,026.1 billion in FY2012.98,99 
4.144.  Many of the smaller regional railways around Japan are loss-making: out of 91 small- and 
medium-sized private railways 69 had operating deficits in FY2012. The subsidies from the 
Government are provided to projects, carried out by regional railway operators, such as 
replacement of equipment to improve safety, barrier -free measures, and improvements of facilities 
for further convenience from the standpoint of ensuring safe regional transport modes, promoting 
use of regional railway services and improving regional activities. The total amount of the subsidies 
provided to regional railway operators was approximately 7,100 million yen 
                                               
96 JRTT (2013),  p. 2. 
97 JRTT (2013), p. 4. 
98 JR East (2014), p. 66. 
99 Tobu Railway is a public company, part of the Tobu  Group of companies, no single shareholder having 
more than 5% of shares; Tokyo Metro is owned by  the Government of Japa n (53.4%) and the Tokyo 
Metropolitan Government (46.6%); an d Toei is run by the Tokyo Metropolitan Bureau of Transportation on 
behalf of the owner, the Metropolitan Government. WT/TPR/S/310/Rev.1 • Japan 
 
- 110 - 
 
  4.145.  The Railway Bureau in MLIT is responsible for policy and legislation on rail transport in 
Japan. The principal legislation affecting rail transport is included in several laws, including: 
• The Railway Business Act of 1986 (last amended in 2014) which sets out the conditions 
for MLIT to grant or refuse licenses for operators, charges and conditions for the use of 
railway tracks, passenger fares, etc.;  
• The Railway Operation Act of 1900 (last amended in 2006) which provides for the 
development and application of technical regulations for the construction railways and 
the structure and operation of rolling stock as well as regulations relating to fares, 
passengers and freight; 
• The Nationwide Shinkansen Railway Development Act of 1970 (last amended in 2011) 
which provides for the development of a railw ay network capable of carrying high-speed 
trains (greater than 200 km/h); 
• The Law Concerning Passenger Railway Companies and the Japan Freight Railway 
Company of 1986 (last amended in 2014) which provided for the creation of six 
passenger railway companies and a freight railway company after the break-up of 
Japanese National Railways; and 
• The Japanese National Railways Restructuring Law of 1998 (last amended in 1998) 
which provided the legal basis for the seven companies formed from the break-up of 
JNR to be restructured as limited liability companies and for their possible privatization as well as to the non-railway businesses of JNR (e.g. ferries). 
4.146.  In addition, to the basic acts, there are several other laws relating to their enforcement or 
providing details for their implementation. Furthermore, in addition to MLIT several other public 
agencies are involved in developing rail transport policy, particularly the local authorities that are responsible for public transport in their jurisdiction . Details on the regulatory regime are set out in 
Box 4.8 below. 
4.147.  In addition to policy and preparing legislat ion, the Railway Bureau is also responsible for 
setting standards, regulation, licensing, approving passenger fares, freight, and leasing of track. 
Although there are no regulations on access to other companies' tracks, accounting separation is 
required so that access can be priced correctly. 
Box 4.8 Regulatory framework for railway transport in Japan, 2012 
Investment regime: 
Prior notification regime for inward foreign direct inve stment: a foreign investor mu st notify in advance the 
Minister of Finance and the minister with jurisdiction ov er the business to: (1) obtain 10% or more of the stock 
of public-listed companies, or (2) obtain the stock of non-public-listed companies. 
When "national security is impaired, the maintenance of pu blic order is disturbed, or  the protection of public 
safety is hindered", the notifier may be ordered to change the content pertaini ng to the inward direct 
investment, or to discontinue the investment  (Foreign Exchange an d Foreign Trade Act). 
Right to operate: 
Railway transport operators must submit an application to  MLIT, take an examination, and obtain a licence in a 
non-discriminatory manner. 
Infrastructures ownership: 
Railway transport network owners must submit an applicat ion to the Minister of Land , Infrastructure, Transport 
and Tourism, takes an examination and obtain  a licence in a non-discriminatory manner. 
Liberalization of freight transport: 
No specific regulations, except Foreign Exchange and Foreign Trade Act. 
Liberalization of passenger transport: 
No specific regulations, except Foreign Exchange and Foreign Trade Act. 
Note: The meaning of "Railway Transport" in this context includes railway, underground railway, tramway, 
monorail, guide-rail system railway, etc. (Article 3, paragraph (3) of the Order on Inward Direct 
Investment). 
Source: Information provided by the Japanese authorities. WT/TPR/S/310/Rev.1 • Japan 
 
- 111 - 
 
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MAFF (2014), The 88th Statistical Yearbook of Ministry of Agriculture, Forestry and Fisheries (2012-2013).  
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Martini R. (2012), Fuel Tax Concessions in the Fisheries Sector , OECD Food, Agriculture and Fisheries Papers, 
No. 56, OECD Publishing. Viewed at: http://dx.doi.org/10.1787/5k9bdccqft30-en  [December 2014]. 
METI (2013a), Electricity Market Reform in Japan, Agency for Natural Resources and Energy, November. 
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METI (2013b), Japan's Policy on Small and Medium Enterprises (SMEs) and Micro Enterprises, presentation by 
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METI (2014a), FY2013 Survey Report on Losses Caused by Counterfeiting was Compiled, 17 March. Viewed at: 
http://www.meti.go.jp/english/press/2014/0317_02.html . 
METI (2014b), White Paper on International Economy and Trade 2014 [Outline],  June. Viewed at: 
http://www.meti.go.jp/englis h/report/index_whitepaper.ht ml#trade [November 2014]. 
MIC (2013), White Paper 2013 – Information and Communications in Japan. Viewed at: 
http://www.soumu.go.jp/menu_seisaku/hakusyo/index.html  [December 2014]. 
MIC (2014), Statistics Bureau, Japan Statistical Yearbook . 
Ministry of Finance (2013a), FY2013 Tax Reform (Main Points), 29 January. Viewed at: 
http://www.mof.go.jp/english/tax_policy/tax_reform/index.html . 
Ministry of Finance (2013b), FY2014 Tax Reform (Main Points), 24 December. 
Ministry of Finance (2013c), Let's Learn More About Taxes (July 2013) . Viewed at:  
http://www.mof.go.jp/english/tax_policy/publication/tax005/index.htm . 
Mizahara M. (2012), Basic Fisheries Policies of Japan, presentation to the Norway-Japan Marine Seminar at 
Miraikan, Tokyo, 10 May. Viewed at: http://injapan.no/marine/files/2012/03/Miyahara-FA.pdf  
[December 2014]. 
MLIT (2008), Basic Plan on Ocean Policy, March. Viewed at: 
http://www.kantei.go.jp/jp/singi/kaiyou/kihonkeikaku/080318kihonkeikaku_E.pdf [December 2014]. 
MLIT (2012), White Paper on Land, Infrastructure, Transport and Tourism in Japan, 2012 . Viewed at: 
http://www.mlit.go.jp/english/white-paper/2012.pdf  [December 2014]. 
MLIT (2014), Official Announcement of "Application Guidelines on the Qualified Project, etc., for Sendai Airport 
Operation",  Press release, 27 June. Viewed at: http://www.mlit.go.jp/common/001047735.pdf  
[December 2014]. 
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OECD (2013b), OECD Economic Surveys: Japan 2013, OECD Publishing . Viewed at: 
http://dx.doi.org/10.1787/eco_surveys-jpn-2013-en . 
OECD (2013c), OECD Review of Fisheries: Country Statistics 2013, OECD publishing. 
OECD (2013d), OECD Review of Fisheries: Policies and Summary Statistics 2013, OECD publishing. Viewed at: 
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  OECD (2014b), The Size and Sectoral Distribution of  SOEs in OECD and Partner Countries,  OECD Publishing. 
Viewed at: http://dx.doi.org/10.1787/9789264215610-en  [September 2014]. 
Saika Y. (2010), Direct Payments for Hilly and Mountainous Areas in Japan, presentation by Saika Y., Director, 
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 WT/TPR/S/310/Rev.1 • Japan 
 
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  5  APPENDIX TABLES 
Table A1. 1 Merchandise exports by product groups, 2009-13 
  2009 2010 2011 2012 2013
Total exports (US$ billion) 580.7 769.8  823.2  798.6  715.1 
 (% of total) 
Total primary products 5.8 5.6  5.9  5.8  6.6 
 Agriculture 1.4 1.3   1.3   1.4  1.5 
  Food 0.7 0.6  0.6  0.6  0.6 
  Agricultural raw material 0.7 0.7  0.8  0.8  0.9 
 Mining 4.4 4.3  4.6  4.4  5.1 
  Ores and other minerals 0.9 0.7  0.7  0.9  0.9 
  Non-ferrous metals 1.8 1.9   1.9   1.9  1.9 
  Fuels 1.8 1.7  2.0   1.7  2.3 
Manufactures  87.5  88.4  88.1   88.9   87.6 
 Iron and steel 5.4 5.5  5.7  5.5  5.4 
 Chemicals 10.6 10.2  10.3  9.9  10.6 
 5112 Cyclic hydrocarbons 0.8 0.7  0.9  0.9  1.3 
 5822 Other plastics, flat shapes, non-cellular and not reinforced, etc. 1.0 1.1   1.0   1.0  0.9 
 Othe r semi-manufactures 4.7 4.7  4.8  4.9  4.9 
 Machinery and transport equipment 58.2 59.5   58.3   59.6  57.9 
  Power generating machines 2.0 1.6   1.7   1.8  1.8 
  Other non-electrical machinery 11.5 13.8  15.4  14.6  13.5 
 7284 Machinery and appliances for particular industries, n.e.s. 2.1 3.3  3.4  2.8  2.5 
 7232 Mechanical shovels, etc., self-propelled 0.7 1.1   1.2   1.3  1.0 
 7285 Parts, n.e.s. of machines/appliances of 723.48, 727.21, 728.41 
to 728.49 0.6 0.8  0.8  0.8  0.7 
 Agricultural machinery and tractors 0.3 0.3  0.3  0.3  0.3 
  Office machines & telecommunication equipment 13.6 12.0  10.6  10.3  9.8 
 7764 Electronic integrated circuits and microassemblies 4.2 4.1  3.6  3.5  3.5 
 7763 Diodes, transistors, etc. 1.2 1.3   1.2  1.1  1.0 
 7649 Parts and accessories for apparatus of division 76 1.7 1.2   1.0  0.9  0.9 
 7638 Sound/video recording/reproducing apparatus; video 
recording/reproducing apparatus 1.6 1.3  1.1   1.2  0.8 
  Other electrical machines 6.4 6.3  6.2  6.3  6.3 
 7725 Switches, relays, fuses, etc. for a voltage not exceeding 1000 V 1.0 1.0   1.0  1.1  1.1 
  Automotive products 17.8 19.4  18.3   20.8  21.2 
 7812 Motor vehicles for the tr ansport of persons, n.e.s. 10.7 11.7  10.6  12.2  12.8 
 7843 Other motor vehicle parts and accessories of 722, 781 to 783 4.2 4.6  4.6  5.0  4.9 
 7821 Goods vehicles 1.1 1.3   1.4   1.6  1.4 
  Other transport equipment 6.8 6.2  6.2  5.8  5.3 
 7932 Ships, boats, etc. (excl. pleasure craft, tugs, etc.) 3.7 3.3   3.1  2.7  2.1 
 7139 Parts, n.e.s., for piston engines of 713.2, 713.3, 713.8 1.0 1.0  1.1  1.1  1.1 
 Textiles 1.1 0.9   1.0   1.0  1.0 
 Clothing 0.1 0.1   0.1   0.1  0.1 
 Other consumer goods 7.5 7.5  7.9  7.9  7.7 
 8719 Liquid crystal devices, n.e.s.; lasers (excl. laser diodes) 0.7 0.9   1.0   1.0  0.9 
 8841 Optical fibres and optical fibre bundles; optical fibre cables other 
than those of heading 773.1; shee ts and plates of polarising 
material; lenses, prisms, mirrors and other optical elements, 
unmounted, other than such elements of glass 0.8 0.7  0.7  0.8  0.8 
 8746 Automatic regulating and controlling instruments 0.6 0.6  0.6  0.7  0.8 
Other 6.7 6.0  6.0  5.3  5.8 
 Gold 0.8 0.8   1.2  0.9  0.7 
Source: UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/310/Rev.1 • Japan 
 
- 116 - 
 
  Table A1. 2 Merchandise imports by product groups, 2009-13 
  2009 2010 2011 2012 2013
Total imports (US$ billion) 552.0 694.1  855.4  885.8 833.2 
 (% of total) 
Total primary products 46.2 48.0  51.4  51.3 50.5 
 Agriculture 12.3 11.2   11.2  10.6 10.3 
  Food 10.5 9.2  9.2  8.9 8.6 
  Agricultural raw material 1.8 1.9  2.0  1.7 1.7 
 Mining 33.9 36.9  40.1   40.8 40.2 
  Ores and other minerals 4.4 5.6  5.4  4.7 4.6 
 2815 Iron ores and concentrates, not agglomerated 1.4 2.0  2.3  2.0 1.9 
 2831 Copper ores and concentrates 1.5 1.7  1.3  1.3 1.3 
  Non-ferrous metals 1.9 2.6  2.6  1.9 1.8 
 6841 Aluminium and aluminium alloys, unwrought 0.6 0.9  0.8  0.7 0.6 
  Fuels 27.6 28.7  32.1  34.1 33.8 
 3330 Crude oils of petroleum and bituminous minerals 14.5 15.2  16.6  17.3 17.5 
 3431 Natural gas, liquefied 5.5 5.7  7.0  8.5 8.7 
 3212 Other coal, whether or pulverized, not agglomerated 3.9 3.3  3.5  3.2 2.7 
 3421 Propane, liquefied 0.8 1.0  1.0   1.1 1.0 
Manufactures 51.7  50.0  47.1   47.2  48.0 
 Iron and steel 1.0 1.3  1.4   1.1 1.0 
 Chemicals 8.8 8.8  8.8  8.3 7.9 
 5429 Medicaments, n.e.s. 1.4 1.3  1.3  1.6 1.5 
 5157 Other heterocyclic compounds; nucleic acids 1.1 0.8  0.7  0.7 0.6 
 5416 Glycosides; glands, etc. and extracts; an tisera/vaccines, etc. 0.5 0.5  0.6  0.6 0.6 
 Other semi-manufactures 3.9 3.6  3.5  3.5 3.5 
 Machinery and transport equipment 23.0 23.3   20.8  21.5 22.7 
  Power generating machines 1.3 1.0  0.9  0.9 0.9 
  Other non-electrical machinery 3.3 3.3  3.3  3.1 3.3 
 Agricultural machinery and tractors 0.1 0.1  0.1  0.1 0.1 
  Office machines & telecommunication equipment 11.2 11.9  10.2  10.2 10.9 
 7764 Electronic integrated circuits and microassemblies 2.9 2.9  2.1  2.0 2.0 
 7643 Radio or television transmission apparatus 0.6 0.7   1.1  1.6 2.0 
 7522 Data processing machines, with at least processing, imput and output 
 units 0.8 0.9  1.0  1.0 1.0 
 7763 Diodes, transistors, etc. 0.3 0.5  0.4  0.5 0.9 
 7649 Parts and accessories for apparatus of division 76 1.4 1.3  1.0  1.0 0.9 
  Other electrical machines 3.8 3.8  3.4  3.6 3.6 
 731 Insulated wire, cable, etc.; optical fibre cables 0.7 0.8  0.7  0.7 0.8 
  Automotive products 1.8 2.0  2.0  2.3 2.5 
 7812 Motor vehicles for the tr ansport of persons, n.e.s. 0.8 0.9  1.0  1.2 1.3 
 7843 Other motor vehicle parts and accessories of 722, 781 to 783 0.7 0.8  0.7  0.8 0.9 
  Other transport equipment 1.5 1.2  1.0  1.4 1.5 
 Textiles 1.2 1.0   1.1  1.0 1.1 
 Clothing 4.6 3.9  3.9  3.8 4.0 
 8453 Jerseys, pullovers, cardigans, etc., knitted/crocheted 0.8 0.6  0.6  0.6 0.6 
 Other consumer goods 9.2 8.3  7.6  7.9 7.9 
Other 2.0 1.9  1.6  1.5 1.4 
 Gold 0.1 0.2  0.1  0.1 0.2 
Source: UNSD, Comtrade database (SITC Rev.3). 
 
 WT/TPR/S/310/Rev.1 • Japan 
 
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  Table A1. 3 Merchandise expo rts by destination, 2009-13 
  2009 2010 2011 2012 2013
Total exports (US$ billion) 580.7 769.8 823.2  798.6  715.1 
 (% of total) 
 America 23.2 22.4 21.7  24.2  24.8 
  United States 16.4 15.6 15.5   17.8  18.8 
  Other America 6.7 6.7 6.2   6.4  6.0 
   Mexico 1.2 1.2 1.2  1.3  1.4 
   Panama 2.2 2.0 1.8  1.8  1.4 
   Canada 1.3 1.2 1.1  1.3  1.2 
 Europe  14.0  12.8  13.3  11.2  11.0 
  EU(28) 12.5 11.3 11.7   10.2  10.0 
   Germany 2.9 2.6 2.9   2.6  2.7 
   The Netherlands 2.3 2.1 2.2   2.0  1.9 
   United Kingdom 2.0 1.8 2.0  1.7  1.6 
  EFTA 1.3 1.2 1.3   0.7  0.6 
  Other Europe 0.3 0.3 0.4   0.3  0.3 
 Commonwealth of Independent States 0.7 1.2 1.7  1.8  1.8 
  Russian Federation 0.6 1.0 1.4  1.6  1.5 
 Africa 1.6 1.6 1.6  1.6  1.6 
 Middle East  3.7  3.3  3.0   3.5   3.6 
  United Arab Emirates 1.1 1.0 0.9  1.1  1.2 
  Kingdom of Saudi Arabia 0.9 0.8 0.8  1.0  1.0 
 Asia 56.8 58.8 58.7  57.6  57.2 
  China 18.9 19.4 19.7  18.1  18.1 
  Six East Asian Traders 29.5 30.4 29.6  29.2  29.0 
   Republic of Korea 8.1 8.1 8.0   7.7  7.9 
   Chinese Taipei 6.3 6.8 6.2   5.8  5.8 
   Hong Kong, China 5.5 5.5 5.2  5.1  5.2 
   Thailand 3.8 4.4 4.6   5.5  5.0 
   Singapore 3.6 3.3 3.3   2.9  2.9 
   Malaysia 2.2 2.3 2.3   2.2  2.1 
 Other Asia  8.4  8.9  9.4   10.3   10.0 
   Indonesia 1.6 2.1 2.2   2.5  2.4 
   Australia 2.1 2.1 2.2   2.3  2.4 
   Viet Nam 1.1 1.1 1.2  1.3  1.5 
   Philippines 1.4 1.4 1.4  1.5  1.4 
   India 1.1 1.2 1.3  1.3  1.2 
Memorandum:      
APEC 74.8 76.4 76.1  77.6  78.4 
Source: UNSD, Comtrade database. 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 118 - 
 
  Table A1. 4 Merchandise imports by origin, 2009-13 
  2009 2010 2011 2012 2013
Total imports (US$ billion)  552.0   694.1  855.4   885.8   833.2 
 (% of total) 
 America 16.0 15.4 14.3   14.1  13.9 
  United States 11.0 10.0 8.9   8.8  8.6 
  Other America 5.1 5.4 5.4   5.2  5.3 
   Canada 1.7 1.6 1.5  1.4  1.4 
   Brazil 1.2 1.4 1.5  1.4  1.3 
   Chile 1.0 1.1 1.1   1.1  1.0 
 Europe  12.3  10.9  10.7   10.7   10.6 
  EU(28) 10.7 9.6 9.4   9.4  9.4 
   Germany 3.0 2.8 2.7   2.8  2.9 
   France 1.7 1.5 1.4  1.4  1.4 
   Italy 1.2 1.0 1.0   1.1  1.1 
  EFTA 1.5 1.3 1.2  1.2  1.1 
  Other Europe 0.1 0.1 0.1  0.1  0.1 
 Commonwealth of Independent States (CIS) 1.7  2.5  2.3   2.5   3.0 
  Russian Federation 1.6 2.3 2.2   2.3  2.8 
 Africa 1.6 1.7  2.0   2.3   2.2 
 Middle East  16.8  17.1  18.8   19.2   19.3 
  Saudi Arabia, Kingdom of 5.3 5.2 5.9   6.2  6.0 
  United Arab Emirates 4.1 4.2 5.0   5.0  5.1 
  Qata r 2.9 3.1 3.5  4.1  4.4 
  Kuwait, the State of 1.6 1.5 1.5  1.7  1.6
 Asia  51.5 52.4  51.8   51.2  50.9 
  China 22.2 22.1 21.5   21.3  21.7 
  Six East Asian Traders 14.5 15.1 15.0   14.8  14.5 
   Republic of Korea 4.0 4.1 4.7   4.6  4.3 
   Malaysia 3.0 3.3 3.6   3.7  3.6 
   Chinese Taipei 3.3 3.3 2.7   2.7  2.8 
   Thailand 2.9 3.0 2.9   2.7  2.6 
   Singapore 1.1 1.2 1.0  1.0  0.9 
  Other Asia 14.8 15.2 15.3   15.1  14.7 
   Australia 6.3 6.5 6.6   6.4  6.1 
   Indonesia 4.0 4.1 4.0   3.6  3.5 
   Viet Nam 1.3 1.2 1.4  1.7  1.7 
   Philippines 1.2 1.1 1.0   1.1  1.1 
Memorandum:      
APEC 66.5 67.0 65.2  64.5  64.3 
Source: UNSD, Comtrade database (SITC Rev.3). 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 119 - 
 
  Table A2. 1 WTO dispute settlement cases active 1 January 2011–31 December 2014 
(reverse chronological order) 
Subject Respondent/ 
complainant/ 
appellant 
Request 
received for 
consultation Status (as at 
31 Dec. 2014) 
WTO 
document 
series 
Japan as respondent  
None  
Japan as complainant  
Definitive Safeguard Measures on 
Certain Passenger Cars Ukraine 30/10/2013 Panel composed 
20/06/2014 DS468
Recycling Fee on Motor Vehicles Russian Federation 24/07/2013 Consultations DS463
Measures Imposing Anti-Dumping 
Duties on High-Performance Stainless 
Steel Seamless Tubes ("HP-SSST") from 
Japan China 20/12/2012 Panel composed 
29/07/2013 DS454
Measures Affecting the Importation of 
Goods Argentina 21/08/2012 Panel report circulated 
22/08/2014 DS445
Measures Related to the Exportation of 
Rare Earths, Tungsten and Molybdenum China 13/03/2012 Reports adopted 
29/08/2014 DS433
Certain Measures Affecting the 
Renewable Energy Generation Sector Canada 13/05/2010 Implementation 
notified 05/06/2014 DS412
Tariff Treatment of Certain Information 
Technology Products European Union 28/05/2008 Implementation 
notified 20/07/2011 DS376
Measures Relating to Zeroing and 
Sunset Reviews United States 24/11/2004 Arbitration request 
withdrawn 03/08/2012 DS322
Japan as a third party  
Measures on the Importation of Live 
Pigs, Pork and Other Pig Products from 
the European Union Russian Federation/European 
Union 08/04/2014 Panel established 
22/07/2014 DS475
Certain Methodologies and their 
Application to Anti-Dumping 
Proceedings Involving China United States/China 03/12/2013 Panel composed 
28/08/2014 DS471
Measures on Atlanto-Scandian Herring Denm ark/European Union 04/11/2013 Mutually agreed 
solution 21/08/2014 DS469
Certain Measures Concerning 
Trademarks, Geographical Indications 
and Other Plain Packaging 
Requirements Applicable to Tobacco 
Products and Packaging Australia/Indonesia 20/09/2013 Panel composed 
05/05/2014 DS467
Anti-dumping and Countervailing 
Measures on Large Residential Washers from Korea United States/Korea, Repub lic of 29/08/2013 Panel composed 
20/06/2014 DS464
Recycling Fee on Motor Vehicles Russian Federation/European 
Union 09/07/2013 Panel established 
25/12/2013 DS462
Measures Imposing Anti-Dumping 
Duties on High-Performance Stainless Steel Seamless Tubes ("HP-SSST") from 
the European Union China/European Union 13/06/2013 Panel composed 
11/09/2013 DS460
Certain Measures Concerning 
Trademarks, Geographical Indications 
and Other Plain Packaging 
Requirements Applicable to Tobacco 
Products and Packaging Australia/Cuba 03/05/2013 Panel composed 
05/05/2014 DS458
Certain Measures Relating to Solar Cells 
and Solar Modules India/United States 06/02/2013 Panel established 
23/05/2014 DS456
Importation of horticultural products, 
animals and animal products Indonesia/United States 10/01/2013 Panel established DS455
Countervailing and Anti-dumping 
Measures on Certain Products from China United States/China 17/09/2012 Reports adopted 
22/07/2014 DS449
Measures Affecting the Importation of 
Goods Argentina/United States 21/08/2012 Panel report circulated 
22/08/2014 DS444
Certain Measures Concerning 
Trademarks, Geographical Indications and Other Plain Packaging Requirements Applicable to Tobacco 
Products and Packaging Australia/Dominican Republic 18/07/2012 Panel composed 
05/05/2014 DS441
Anti-Dumping and Countervailing Duties 
on Certain Automobiles from the United 
States China/United States 05/07/2012 Report adopted 
18/06/2014 DS440
Measures Affecting the Importation of 
Goods Argentina/European Union 25/05/2012 Panel report circulated 
22/08/2014 DS438
Countervailing Duty Measures on 
Certain Products from China United States/China 25/05/2012 Panel report circulated 
14/07/2014 DS437WT/TPR/S/310/Rev.1 • Japan 
 
- 120 - 
 
  Subject Respondent/ 
complainant/ 
appellant 
Request 
received for 
consultation Status (as at 
31 Dec. 2014) 
WTO 
document 
series 
Certain Measures Concerning 
Trademarks, Geographical Indications and Other Plain Packaging 
Requirements Applicable to Tobacco 
Products and Packaging Honduras/Australia 04/ 04/2012 Panel composed 
05/05/2014 DS435
Certain Measures Concerning 
Trademarks and Other Plain Packaging 
Requirements Applicable to Tobacco 
Products and Packaging Ukraine/Australia 13/03/2012 Panel composed 
05/05/2014 DS434
Measures Related to the Exportation of 
Rare Earths, Tungsten and Molybdenum China/European Union 13/03/2012 Reports adopted 
29/08/2014 DS432
Measures Related to the Exportation of 
Rare Earths, Tungsten and Molybdenum China/United States 13/03/2012 Reports adopted 
29/08/2014 DS431
Measures Concerning the Importation of 
Certain Agricultural Products from the United States India/United States 06/03/2012 Panel composed 
18/02/2013 DS430
Anti-Dumping Measures on Certain 
Frozen Warmwater Shrimp from Viet 
Nam United States/Viet Nam 20/02/2012 Panel composed 
12/07/2013 DS429
Anti-Dumping and Countervailing Duty 
Measures on Broiler Products from the United States China/United States 20/09/2011 Implementation 
notified 22/07/2014 DS427
Measures Relating to the Feed-in Tariff 
Program Canada/European Union 11/08/2011 Implementation 
notified 05/06/2014 DS426
Definitive Anti-Dumping Duties on X-
Ray Security Inspection Equipment from the European Union China/European Union 25/07/2011 Implementation 
notified 26/02/2014 DS425
Anti-Dumping Measures on Shrimp and 
Diamond Sawblades from China United States/China 28/02/2011 Implementation 
notified 26/03/2013 DS422
Anti-dumping measures on corrosion-
resistant carbon steel flat products from 
Korea United States/Korea, Republic of 31/01/2011 Panel established DS420
Countervailing and Anti-Dumping Duties 
on Grain Oriented Flat-rolled Electrical 
Steel from the United States China/United States 15/09/2010 Compliance 
proceedings ongoing 
26/02/2014 DS414
Certain Measures Affecting Electronic 
Payment Services China/United States 15/09/2010 Implementation 
notified 23/07/2013 DS413
Anti-Dumping Measures on Certain 
Footwear from China European Union/China 04/02/2010 Implementation 
notified 17/012/2012 DS405
Anti-dumping Measures on Certain 
Shrimp from Viet Nam United States/Viet Nam 01/02/2010 Reports adopted 
02/09/2011 DS404
Use of Zeroing in Anti-Dumping 
Measures Involving Products from Korea United States/Korea, Republic of 24/11/2009 Implementation 
notified 19/12/2011 DS402
Measures Prohibiting the Importation 
and Marketing of Seal Products European Union/Norway 05/11/2009 Reports adopted 
18/06/2014 DS401
Measures Prohibiting the Importation 
and Marketing of Seal Products European Union/Canada 02/11/2009 Reports adopted 
18/06/2014 DS400
Measures Affecting Imports of Certain 
Passenger Vehicle and Light Truck Tyres from China United States/China 14/09/2009 Reports adopted 
05/10/2011 DS399
Measures Related to the Exportation of 
Various Raw Materials China/Mexico 21/08/2009 Implementation 
notified 28/01/2013 DS398
Definitive Anti-Dumping Measures on 
Certain Iron or Steel Fasteners from China European Union/China 31/07/2009 Compliance 
proceedings ongoing 18/12/2013 DS397
Measures Related to the Exportation of 
Various Raw Materials China/European Union 23/06/2009 Implementation 
notified 28/01/2013 DS395
Measures Related to the Exportation of 
Various Raw Materials China/United States 22/06/2009 Implementation 
notified 28/01/2013 DS394
Measures Affecting the Importation of 
Bovine Meat and Meat Products from 
Canada Korea, Republic of/Canada 09/04/2009 Mutually agreed 
solution 
03/07/2012 DS391
Certain Country of Origin Labelling 
Requirements United States/Mexico 17/12/2008 Compliance 
proceedings ongoing 
25/09/2013 DS386
Certain Country of Origin Labelling 
Requirements United States/Canada 01/12/2008 Compliance 
proceedings ongoing 
25/09/2013 DS384
Anti-Dumping Administrative Reviews 
and Other Measures Related to Imports 
of Certain Orange Juice from Brazil United States/Brazil 27/ 11/2008 Mutually agreed 
solution 14/02/2013 DS382WT/TPR/S/310/Rev.1 • Japan 
 
- 121 - 
 
  Subject Respondent/ 
complainant/ 
appellant 
Request 
received for 
consultation Status (as at 
31 Dec. 2014) 
WTO 
document 
series 
Measures Concerning the Importation, 
Marketing and Sale of Tuna and Tuna 
Products United States/Mexico 24/10/2008 Compliance 
proceedings ongoing 
22/01/2014 DS381
Definitive Anti-Dumping and 
Countervailing Duties on Certain Products from China United States/China 19/09/2008 Implementation 
notified 31/08/2012 DS379
Tariff Treatment of Certain Information 
Technology Products European Union/Chinese Taipei 12/06/2008 Implementation 
notified 20/07/2011 DS377
Tariff Treatment of Certain Information 
Technology Products European Union/United St ates 28/05/2008 Implementation 
notified 20/07/2011 DS375
Certain Measures Prohibiting the 
Importation and Marketing of Seal 
Products European Union/Canada 25/09/2007 Panel established 
25/03/2011 DS369
Measures Affecting the Importation of 
Apples from New Zealand Australia/New Zealand 31/08/2007 Implementation 
notified 02/09/2011 DS367
Measures Affecting Trading Rights and 
Distribution Services for Certain 
Publications and Audiovisual 
Entertainment Products China/United States 10/04/2007 Implementation 
notified 27/05/2012 DS363
Measures Affecting Trade in Large Civil 
Aircraft — Second Complaint United States/European Union 27/06/2005 Compliance 
proceedings ongoing 23/10/2012 DS353
Final Anti-Dumping Measures on 
Stainless Steel from Mexico United States/Mexico 26/05/2006 Mutually agreed 
solution 08/04/2013 DS344
Source: WTO Secretariat. 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 122 - 
 
  Table A2. 2 Selected notifications under WTO Agreements (1 January 2012-
7 October 2014) 
WTO 
Agreement Description of requirement Document symbol and date of most 
recent notification 
Agriculture  
Article 18.2 Domestic support (DS:1) G/AG/N/JPN/191, 31/03/2014 
Article 18.2 Domestic support (DS:2) G/AG/N/JPN/192, 02/04/2014 
Article 18.2 Information on tariff quotas administration (MA:1)
Article 18.2 Volume of imports under tariff quotas (MA:2) G/AG/N/JPN/196, 01/10/2014 
Article 5.7 Volume-based special safeguard (MA:3) G/AG/N/JPN/197, 06/10/2014 
Article 5.7 Price-based special safeguard (MA:4) G/AG/N/JPN/195, 28/07/2014 
Articles 5.7 and 
18.2 Special safeguard (MA:5) G/AG/N/JPN/193, 24/04/2014 
Articles 10 
and 18.2 Export subsidies (outlays and quantities) (ES:1) G/AG/N/JPN/194, 25/04/2014 
Article 10 Volume of food aid in the context of export subsidy 
commitments (ES:3) G/AG/N/JPN/188, 16/07/2013 
Article 16.2 Measures concerning the possible negative effects of the reform 
programme on least developed and net food importing developing countries (NF:1) G/AG/N/JPN/180, 20/11/2012 
Anti-dumping  
Article 16.4 Anti-dumping actions taken G/ADP/N/259/JPN, 22/07/2014
Article 16.5 Domestic procedures and authorities competent to initiate and 
conduct investigation G/ADP/N/14/Add.29 
(G/SCM/N/18/Add.29), 22/04/2010 
Article 18.5  Laws and regulations (and changes) G/ADP/N/1/JPN/2/Suppl.7 
G/SCM/N/1/JPN/2/Suppl.7, 29/08/2011 
GATT 1994 (Article VII: Customs Valuation)  
Article 22.2 Amendments  G/VAL/N/1/JPN/2, 20/09/2013 
 Checklist of issues G/VAL/N/2/JPN/2, 18/09/2013 
GATT 1994 (Article XVII:4(a) Understanding on the Interpretation of Article XVII)
 Notification of products traded by state enterprises
State trading activities G/STR/N/15/JPN, 11/07/2014 
Government Procurement 
Article XIX:5 Statistics on government procurement GPA/108/Add.4, 23/02/2012 
Article XXIV:5(b)  Notification of national implementing legislation
Laws and regulations (and changes) GPA/W/314/Add.5, 06/02/2012
GPA/117, 22/04/2013 
Article XXIV:6 Modifications to Appendix I GPA/MOD/JPN/52, 22/06/2010 
GPA/W/309/Add.5, 11/02/2010 
Article XXIV:6(a) 
 Modifications to Annex 3 of Appendix I 
Modifications to Annex 1 of Appendix I  GPA/MOD/JPN/67, 09/03/2012 
GPA/MOD/JPN/66, 14/02/2012 
Revised GPA Thresholds GPA/W/328, 22/04/2014 
Import Licensing Procedures  
Articles 1.4(a) 
and 8.2(b) Laws and regulations relevant to import licensing No notification 
Article 5.3 Notification of licensing procedures and changes No notification 
Article 7.3 Questionnaire; rules and information concerning procedures for 
the submission of applications G/LIC/N/3/JPN/13, 03/10/2014
Subsidies and Countervailing Measures  
Article 32.6 
 Laws and regulations  G/ADP/N/1/JPN/2/Suppl.7, 
(G/SCM/N/1/JPN/2/Suppl.7), 
29/08/2011 
Article 25.11 Countervailing duty actions taken G/SCM/N/235/Add.1, 24/04/2012
Article 25.1 Subsidies programmes G/SCM/N/253/JPN, 08/07/2013
G/SCM/N/253/JPN/Suppl.1, 17/03/2014 
Article 25.12 Notification of domestic procedures and authorities competent 
to initiate and conduct investigations No notification 
Safeguards  
Article 12.6 Laws and regulations G/SG/Q1/JPN/8, 22/04/2010 
Article 12.5 Notification of termination of safeguard investigation No notification 
Sanitary and Phytosanitary Measures  
Article 6, 
Annex B Notification of emergency measures (since 01/01/2012) G/SPS/N/JPN/358, 28/07/2014 
G/SPS/N/JPN/352, 25/06/2014 
Article 5, 
Annex B Notification of sanitary and phytosanitary measures 2012 – 22 notifications 
2013 – 18  
2014 – 38  
Technical Barriers to Trade
Article 15.2 Laws and regulations on the implementation and administration 
of the TBT Agreement G/TBT/2/Add.10, 11/06/1996 
Article 2.10 Urgent technical regulations G/TBT/N/JPN/468, 25/09/2014 
G/TBT/N/JPN/462, 18/08/2014 
G/TBT/N/JPN/461, 28/08/2014 
Article 2.9 Technical regulations 2012 – 33 notifications 
2013 – 38 notifications, 1 corrigendum 
2014 – 16 notifications 
Article 5.6 Conformity assessment procedures G/TBT/N/JPN/405, 01/08/2012 
Article 5.7 Urgent conformity assessment procedures None
TRIMs  
Article 5.1 Investment measures NoneWT/TPR/S/310/Rev.1 • Japan 
 
- 123 - 
 
  WTO 
Agreement Description of requirement Document symbol and date of most 
recent notification 
TRIPS  
Article 63.2 Design Act, updated text IP/N/1/JPN/D/5, 24/06/2013 
 Trademark Act, updated text IP/N/1/JPN/T/5, 24/06/2013 
 Patent Act, updated text IP/N/1/JPN/P/9, 24/06/2013 
 Laws and regulations IP/N/1/JPN/12, 12/06/2013 
 Other laws and regulations IP/N/1/JPN/11, 03/05/2012 
 Unfair Competition Prevention Act IP/N/1/JPN/U/1, 29/02/2012 
 Japanese Unfair Competition Prevention Act, updated text IP/N/1/JPN/10, 24/02/2012 
Article 69 Contact points IP/N/7/Rev.3, 17/02/2010 
General Agreement on Trade in Services (GATS)
Article III:3 Changes to laws and regulations affecting services S/C/N/659, 05/11/2012 
S/C/N/660, 05/11/2012 
Regional Trade Agreements
 Notification of regional trade agreement WT/REG309/N/1, 24/02/2012 
 Notification of changes affecting the implementation of a 
regional trade agreement 
Source: WTO documents. 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 124 - 
 
  Table A3. 1 Japan's tariff summary, FY2014 
 Number 
of lines Average 
(%) Range 
(%) Standard 
deviation Duty free 
(%) Non- ad 
valorem  
rates 
(%) 
Total 9,151 5.8 0-298.6 14.3 40.4 6.7
HS 01-24 2,183 13.3 0-298.6 23.8 18.9 14.0
HS 25-97 6,968 3.5 0-202.3 8.5 47.1 4.4
By WTO category  
WTO agricultural products 1,809 14.9 0-298.69 26.5 25.9 17.4
  Animals and products thereof 232 10.1 0-50 13.1 37.1 14.2
  Dairy products 64 55.4 9.7-225.6 50.8 0.0 70.3
  Fruit, vegetables, and plants 495 10.9 0-237.2 18.9 15.2 3.0
  Coffee and tea 62 19.1 0-92.6 15.7 11.3 9.7
  Cereals and preparations 348 25.0 0-298.6 37.3 9.8 27.3
  Oils seeds, fats, oil and their products 133 2.9 0-29.8 4.2 42.9 30.1
  Sugars and confectionary 49 34.9 0-114.2 28.7 6.1 59.2
  Beverages, spirits and tobacco 145 17.4 0-69.6 13.2 21.4 24.8
  Cotton 5 0.0 0-0 0.0 100.0 0.0
  Other agricultural products, n.e.s. 276 5.3 0-246 20.4 61.6 5.4
WTO non-agricultural products 7,342 3.7 0-202.3 7.9 44.0 4.1
  Fish and fishery products 499 6.2 0-15 3.7 4.4 0.2
  Minerals and metals 1,259 0.9 0-11.7 1.6 72.4 2.4
  Chemicals and photographic supplies 1,180 2.5 0-6.5 1.8 30.8 0.1
  Wood, pulp, paper and furniture 454 1.8 0-10 2.7 65.9 0.0
  Textiles 1,478 5.6 0-25 2.5 4.5 14.0
  Clothing 509 9.2 0-13.4 2.0 0.8 0.0
  Leather, rubber, footwear and travel goods 318 16.1 0-202.3 31.7 39.3 7.9
  Non-electric machinery 602 0.0 0-0 0.0 100.0 0.0
  Electric machinery 314 0.1 0-4.8 0.6 97.8 0.0
  Transport equipment 134 0.0 0-0 0.0 100.0 0.0
  Non-agricultural products, n.e.s. 505 1.3 0-8.4 2.3 72.5 0.4
  Petroleum 90 1.6 0-7.9 1.9 32.2 36.7
By ISIC sector  
  ISIC 1 - Agriculture, hunting and fishing 671 5.0 0-246 14.8 45.6 5.1
  ISIC 2 – Mining 113 0.1 0-4.1 0.8 96.5 0.9
  ISIC 3 – Manufacturing 8,367 6.0 0-298.6 14.3 39.2 6.9
  Manufacturing excluding food pr ocessing 6,769 3.6 0-202.3 8.5 45.7 4.5
By stage of processing  
  First stage of processing 1,168 5.4 0-298.6 20.4 51.2 5.0
  Semi-processed products 3,410 4.7 0-155 7.4 27.0 8.4
  Fully processed products 4,573 6.8 0-280.9 16.2 47.6 5.9
By HS section  
  01 Live animals and products 710 10.6 0-225.6 21.7 17.6 10.8
  02 Vegetable products 586 11.2 0-298.6 29.8 31.4 11.3
  03 Fats and oils 91 4.1 0-29.8 4.5 26.4 40.7
  04 Prepared food, beverages and tobacco 796 18.3 0-280.9 20.9 10.1 15.8
  05 Mineral products 255 0.7 0-7.9 1.4 68.2 13.7
  06 Chemicals and p roducts thereof 1,079 2.3 0-28.7 2.3 36.5 0.4
  07 Plastics, rubber, and articles thereof 296 2.5 0-6.5 1.9 34.8 0.0
  08 Raw hides and skins, leather, and its 
products 193 10.5 0-30 10.8 33.7 0.0
  09 Wood and articles of wood 265 3.4 0-10 3.0 35.8 0.0
  10 Pulp of wood, paper and paperboard 166 0.0 0-0 0.0 100.0 0.0
  11 Textiles and textile articles 1,971 6.7 0-126.4 5.5 4.4 10.8
  12 Footwear, headgear, etc. 105 32.6 0-202.3 49.0 5.7 23.8
  13 Articles of stone, plaster, cement 163 1.2 0-8 1.7 60.7 0.0
  14 Precious stones and metals, pearls 79 1.3 0-10 2.3 72.2 0.0
  15 Base metals and articles thereof 844 0.9 0-11.7 1.6 71.9 3.3
  16 Machinery, electrical equipment, etc. 918 0.0 0-4.8 0.3 99.2 0.0
  17 Transport equipment 145 0.1 0-8.4 0.7 99.3 0.0
  18 Precision equipment 271 0.2 0-16 1.5 96.7 0.0
  19 Arms and ammunition 22 6.9 5.4-8.4 1.5 0.0 0.0
  20 Miscellaneous manufactured articles 189 1.7 0-8.1 2.1 57.7 1.1
  21 Works of art, etc. 7 0.0 0-0 0.0 100.0 0.0
Note: Excluding in-quota lines and including AVEs, as available, provided by the Japanese authorities. In 
case of unavailability, the ad valorem  part is used for compound and alternate rates. 
Source: WTO Secretariat calculations, based on data from Japan Customs. Viewed at: 
http://www.customs.go.jp/english/tariff/2014 4/index.htm. 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 125 - 
 
  Table A3. 2 Incorporated administrati ve agencies by government office 
Cabinet Office (2) 
National Archives of Japan 
Northern Territories Issue Association  
Consumer Affairs Agency (1)  
National Consumer Affairs Center of Japan 
Ministry of Internal Affairs and Communications (3) 
National Institute of Information and Communications Technology  
National Statistics Center 
Management Organization for Postal Savings and Postal Life Insurance 
Ministry of Foreign Affairs (2) 
Japan International Cooperation Agency 
The Japan Foundation  
Ministry of Finance (3) 
National Research Institute of Brewing 
Japan Mint 
National Printing Bureau 
Ministry of Education, Culture, Sp orts, Science and Technology (23) 
National Institute of Special Needs Education 
National Center for University Entrance Examinations 
National Institution For Youth Education 
National Women's Education Center of Japan 
National Museum of Nature and Science 
National Institute for Materials Science  
National Research Institute for Earth Science and Disaster Prevention  
National Institute of Radiological Sciences  
National Museum of Art 
National Institutes for Cultural Heritage  
National Center for Teachers' Development  
Japan Science and Technology Agency  
Japan Society for the Promotion of Science  
RIKEN  
Japan Aerospace Exploration Agency  
Japan Sport Council 
Japan Arts Council  
Japan Student Services Organization  
Japan Agency for Marine-Earth Science and Technology, Japan  
Institute of National Colleges of Technology  
National Institution for Academic Degrees and University Evaluation  
Center for National University Finance and Management  
Japan Atomic Energy Agency 
Ministry of Health, Labour and Welfare (19) 
National Institute of Health and Nutrition  
National Institute of Occupational Safety and Health  
Organization Workers' Retirement Allowance Mutual Aid  
Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers 
Welfare and Medical Service Agency  
National Center for Persons with Severe Intellectual Disabilities, Nozominosono 
The Japan Institute for Labour Policy and Training  
Japan Labour Health and Welfare Organization  
National Hospital Organization  
Pharmaceuticals and Medical Devices Agency 
National Institute of Biomedical Innovation  
Japan Community Health Care Organization 
Government Pension Investment Fund 
National Cancer Center 
National Cerebral and Cardiovascular Center 
National Center for Neurology and Psychiatry 
National Center for Global Health and Medicine 
National Center for Child Health and Development 
National Center for Geriatrics and Gerontology 
Ministry of Agriculture, Forestry and Fisheries (13) 
Food and Agricultural Materials Inspection Center  
National Center for Seeds and Seedlings  
National Livestock Breeding Center  
Agriculture and Livestock Industries Corporation (notified to WTO as a state trading enterprise) 
National Fisheries University  
Farmers Pension Fund  WT/TPR/S/310/Rev.1 • Japan 
 
- 126 - 
 
  Agriculture, Forestry and Fisheries Credit Foundations  
National Agriculture and Food Research Organization  
National Institute of Agrobiological Sciences  
National Institute for Agro-Environmental Sciences  
Japan International Research Center for Agricultural Sciences  
Forestry and Forest Products Research Institute  
Fisheries Research Agency  
Ministry of Economy, Trade and Industry (10) 
Research Institute of Economy, Trade and Industry  
National Center for Industrial Property Information and Training  
Nippon Export and Investment Insurance  
National Institute of Advanced Industrial Science and Technology  
National Institute of Technology and Evaluation  
Japan External Trade Organization  
New Energy and Industrial Techno logy Development Organization  
Information-Technology Promotion Agency, Japan  
Japan Oil, Gas and Metals National Corporation  
Organization for Small and Medium Ente rprises and Regional Innovation, Japan 
Ministry of Land, Infrastructure, Transport and Tourism (19) 
Public Works Research Institute  
Building Research Institute 
National Traffic Safety and Environment Laboratory  
National Maritime Research Institute  
Port and Airport Research Institute 
Electronic Navigation Research Institute  
National Institute for Sea Training  
Marine Technical Education Agency  
Civil Aviation College  
National Agency of Vehicle Inspection  
Japan Railway Construction, Transport and Technology Agency  
Japan National Tourism Organization  
Japan Water Agency  
National Agency for Automotive Safety and Victims' Aid  
Organization for Environment Improvement around International Airport  
Urban Renaissance Agency  
Fund for the Promotion and Development of the Amami Islands  
Japan Expressway Holding and Debt Repayment Agency  
Japan Housing Finance Agency 
Ministry of the Environment (2) 
National Institute for Environmental Studies  
Environmental Restoration and Conservation Agency 
Ministry of Defense (1) 
Labor Management Organization for USFJ Employees  
Source: Japanese authorities; and Ministry of  Internal Affairs and Communications (2013), List of Incorporated 
Administrative Agencies (as at December 1, 2013).  Viewed at: 
http://www.soumu.go.jp/main_sosiki/gyoukan/kanri/pdf/18_iaa.pdf . 
 WT/TPR/S/310/Rev.1 • Japan 
 
- 127 - 
 
  Table A4. 1 Special safeguard, FY2011-2013 
HS Description Type of 
SSG Date or period of 
application 
FY2011   
040110190 Milk and cream, not concentrated nor containing added sugar or other 
sweetening matter, of a fat content, by weight, not exceeding 1%: 
sterilized, frozen or treated appropriate to preserve Volume 01/12/11 to 
31/03/12 
040120190 Milk and cream, not concentrated nor containing added sugar or other 
sweetening matter, of a fat content, by weight, exceeding 1% but not 
exceeding 6%: sterilized, frozen or preserved Volume 01/12/11 to 
31/03/12 
040140190 
040150119 
040150129 Milk and cream, not concentrated nor containing added sugar or other 
sweetening matter, of a fat content, by weight, exceeding 6%: Sterilized, 
frozen or preserved; other cream of a fat content, by weight, of 13% or 
more (other than sterilized, frozen or preserved) Volume 01/11/11 to 
31/03/12 
040221119 Milk powder, not containing added sugar or other sweetening matter, of a 
fat content, by weight, exceeding 5% but not exceeding 30% Price 15/04/11 
040299129 
040299290 Condensed mil k Volume 01/01/12 to 
31/03/12 
040310190 Yogurt, frozen, preserved or containing added sugar or other sweetening 
matter, flavouring, fruits or nuts (excluding frozen yogurt) Volume 01/07/11 to 
31/03/12 
040390113 
040390118 
040390123 
040390128 
040390133 
040390138 Buttermilk, curdled milk and cream, kephir and other fermented or acidified 
milk and cream, sterilized, frozen, preserved, concentrated or containing 
added sugar or other sweetening matter, flavouring, fruits or nuts Volume 01/08/11 to 
31/03/12 
110100200 Wheat or meslin flou r Price 04/04/11, 02/05/11
110290390 Rice flou r Price 29/09/11 
110819099 Other starches (excluding sago starches) Price 13/02/12 
110820090 Inulin Price 12/05/11, 
17/01/12, 15/02/12 
190120139 Mostly containing wheat and triticale preparation Price 07/10/11 
190190132 Food preparations of goods of heading 04.01 to 04.04, containing not less 
than 30% natural milk constituents, of the articles in dry weight, excluding 
whipped cream in pressurized containers, containing not more than 30% 
milk fat by weight Price 28/11/11 
190190179 Food preparations of flour, meal, or starch, containing groats, meal, pellets 
or starch of rice, wheat, triticale, barley, which total weight is more than 
85% of the articles, mostly containing starch (excluding wheat starch) Price 19/04/11, 
09/06/11, 
10/11/11, 05/01/12 
FY2012   
040390113 
040390118 
040390123 
040390128 040390133 040390138 Buttermilk, curdled milk and cream, kephir and other fermented or acidified 
milk and cream, sterilized, frozen, preserved, concentrated or containing 
added sugar or other sweetening matter, flavouring, fruits or nuts Volume 01/10/12 to 
31/03/13 
040510129 
040510229 
040520090 
040590190 
040590229 Butter and other fats and oils derived from milk; dairy spreads Volume 01/01/13 to 
31/03/13 
040510129 Butter of a fat content, by weight, not exceeding 85% Price 14/11/12 
110100200 Wheat or meslin flou r Price 13/12/12, 
20/12/12, 21/01/13 
110290390 Rice flou r Price 23/08/12, 07/01/13
110811090 Wheat starch Price 27/12/12 
110814090 Manioc (cassava) starch Price 15/11/12 
110819099 Other starches (excluding sago starches) Price 29/06/12 
110820090 Inulin Price 27/07/12 
121299190 Tubers of konnyaku (amorphophalus), whether or not cut, dried or 
powdered Volume 01/12/12 to 
31/03/13 
190120139 Mostly containing wheat and triticale preparation Price 18/07/12 
190190132 Food preparations of goods of heading 04.01 to 04.04, containing not less 
than 30% natural milk constituents, of the articles in dry weight, excluding 
whipped cream in pressurized containers, containing not more than 30% 
milk fat by weight Price 17/10/12 
190190179 Food preparations of flour, meal, or starch, containing groats, meal, pellets 
or starch of rice, wheat, triticale, barley, which total weight is more than 85% of the articles, mostly containing starch (excluding wheat starch) Price 30/07/12, 
31/08/12, 26/10/12, 06/12/12, 21/02/13, 04/03/13 
190490130 Cereals, other than maize (corn), in grain form, pre-cooked or otherwise 
prepared, of rice, containing more than 30% by weight of rice Price 16/10/12 
190490290 Cereals, other than maize (corn), in  grain form, pre-cooked or otherwise 
prepared, of wheat or triticale Price 16/10/12 
FY2013   
040221119 Milk powder, not containing added sugar or other sweetening matter of a fat 
content, by weight, exceeding 5% but not exceeding 30% Price 22/05/13 
040310190 Yogurt, frozen, preserved or containing added sugar or other sweetening Price 17/03/14 WT/TPR/S/310/Rev.1 • Japan 
 
- 128 - 
 
  HS Description Type of 
SSG Date or period of 
application 
matter, flavouring, fruits or nuts (excluding frozen yogurt)
040590190 Other fats and oils derived from milk of a fat content, by weight, not 
exceeding 85 ％ Price 26/06/13 
071310229 Peas (pisum sativum) Price 07/01/14 
110100200 Wheat or meslin flou r Price 24/10/13, 05/02/14
110429119 Other worked grains (for example, hulled, pearled, sliced or kibbled), of 
wheat Price 24/10/13 
110811090 Wheat starch Price 15/05/13 
110819099 Other starches (excluding Sago starches) Price 27/08/3013, 
30/09/13 
110820090 Inulin Volume 01/03/14 to 
31/03/14 
110820090 Inulin Price 15/04/13, 20/02/14
190190179 Food preparations of flour, meal, or starch, containing groats, meal, pellets 
or starch of rice, wheat, triticale, barley, which total weight is more than 85% of the articles mostly containing starch (excluding wheat starch) Price 27/05/13, 
31/07/13, 30/09/13, 08/10/13, 
21/11/13, 21/01/14 
210690119 Food preparations containing by weight not less than 30% natural milk 
constituents on the dry matter Price 31/05/13 
Source: WTO notifications G/AG/N/JPN/193 of 24 April 2014, JPN/186 of 26 April 2013, and JPN/175 of 
25 April 2012. 
__________