G/C/W/686  
 
7 October 2013  
(13-5401)  Page: 1/3  
Council for Trade in Goods  Original: English  
 
ANSWERS TO THE QUESTIONS FROM CANADA ON THE  
JAPANESE WOOD USE POINTS PROGRAM 
The following submission, dated 1 October 2013, is being circulated at the request of the 
Delegation of Japan. 
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1. Before getting into responses to the questions, we would like to make factual clarifications 
on the background provided in Canada's questionnaire (G/C/W/681). 
1.1 As announced on the website of Forestry Ag ency of Japan and the secretariat of the Wood 
Use Points Program, wooden houses which are started to be built during the period between 
1 April 2013 and 31 March 2014 are eligible under the program. 
1.2 Applications for the Wood Use Points will be accepted from 1 July 2013, until 31 July 2014.  
The future course of the program after the abov e mentioned period has not been decided yet. 
1.3 Canada mentioned in its questionnaire (1.2) that, with the initial budget allocation of 
¥41 billion, this program could potentially impact construction of more than 135,000 new houses.  Japan, however, considers that the number of houses eligible under this program is likely to be 
much smaller, as the budget includes the administrative costs of the program. 
Question a:  What is the objective of the Wood Use Points Program? Answer: 
The objective of this program is, through promoting wood use, to contribute to proper 
management and conservation of forest, prevention of global warming and promotion of a 
recycling-oriented society, as well as to serve for the development of rural areas.  Wood eligible under the program includes foreign wood. 
Question b:  What impact does Japan envisa ge that there might be on imported wood 
products as a result of Wood Use Points Program? 
Answer: 
Through this program, constructions and sales of  wooden houses are expected to be promoted, 
and public awareness on the value of wood woul d be enhanced.  Consequently, the demands for 
both domestic and imported wood would be expanded. 
Question c:  How will the Wood Use Points Program be consistent with Japan's WTO 
commitments, specifically the commitment to accord "… treatment no less favourable 
than that accorded to like products of national  origin in respect of all laws, … or use" as 
provided for by Article 3.4 of the GATT?  G/C/W/686 
 
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  Answer: 
The program does not make any distinction based on the origin of wood.  The same criteria and 
procedures are applied to both domestic and foreign wood, and therefore the program ensures that foreign wood and domestic wood are given equal opportunities.  The criteria, as such, are 
objective ones, and whether or not the criteria are met will be assessed based on objective, 
available data inside and/or outside Japan for both  domestic and foreign wood.   Japan, therefore, 
believes that the program would not prejudice the conditions of competition in the market place 
concerning the treatment of imported products.  
Question d:  There is a lack of transparency associated with the eligibility criteria related 
to construction methods related to wood ma terials.  The examples provided on the 
Japan Forestry Agency web site only iden tify Japanese tree species and specific 
construction products.  Does Japan intend to publish clearer eligibility criteria and 
include examples of potentially eligible no n-Japanese tree species and examples of a 
variety of potentially eligible construction products, such as oriented strand board? 
Answer: 
The eligibility criteria related to construction methods are provided in the information sheet 
entitled "on Implementation of the Wood Use Points Program" (29 March 2013) which is made 
public on the website of Forestry Agency of Japan 
(http://www.rinya.maff.go.jp/j/ press/riyou/pdf/130329-03.pdf ).  Construction methods will be 
designated as eligible if they are recognized to meet the criteria, based on the examination by the 
Committee on Fund Management and Administration as well as the recommendation from the 
Prefecture Council.  A clearer guidance on the criteria  and procedures will be published in October.   
At present, certain tree species and construction methods are illustrated as examples in the 
information sheet and the website, as these tree species and construction methods have already 
been confirmed to meet the criteria, based on objective data.  Other tree species and/or 
construction methods that fulfil the criteria and the procedures, regardless of foreign or domestic origin, will be designated as eligible. 
It is difficult to identify in advance all the potential tree species and construction materials that 
could be designated as eligible since there are varieties of species and materials, and each application will be examined under the same criteria and procedures but only on an individual basis.  Several applications for tree species have already been submitted from both Japan and 
foreign countries and are currently under examination by the Committee.  The approved tree 
species will be published without delay.  
Question e:  Why does the Wood Use Points Program require that wood products 
originate specifically from "growing forest resources", instead of accepting wood from 
all sustainably managed forests, in cluding stable forest resources? 
Answer: 
In order for wood to be eligible under the program,  the wood has to be, certified sustainable wood.  
In addition, the wood must be of tree species fulfilling the criteria that their resources are increasing in volume on a country basis.  These conditions are required to effectively and efficiently achieve the objective of the program, which is, to contribute to proper management and 
conservation of forest, prevention of global warming and promotion of a recycling-oriented society. 
Question f:  What is the scope of products /services that can be purchased through the 
redemption of points acquired through this program?  Will the list of eligible 
products/services vary from prefecture to prefecture?  Can points be redeemed for 
imported products?  Is the redemption of poin ts limited to private citizens or can other 
entities also redeem points?  G/C/W/686 
 
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  Answer: 
Wood Use Points can be redeemed for goods and services, including agricultural, forestry and 
fishery products, excursion and gift certificates, which are selected nationwide through public application process.  The Points can also be used for donation to forestation and wood use 
activities and to the areas affected by the Gr eat East Japan Earthquake, and for payment of 
additional wooden construction.  There is only one list used nationwide, and no prefecture-specific lists exist.  Imported goods can also be eligible for redemption, if they are selected as a result of 
the public application process.  Anyone who orders construction work of a house that meets the 
criteria under the program can apply for the Points, and in most cases the applicants are expected to be private citizens. 
Question g:  Can Japan please confirm th at the Wood Use Points Program requires 
exporters to provide an economic impact assessment of their wood products in the 
Japanese marketplace?  If yes, can Japan explain what information is being sought? 
Is this requirement also imp osed on Japanese producers?  
Answer: 
An applicant for designation of a tree species is required to provide:  (i) data regarding its 
resource in volume; and (ii) information indicating that the use of the species will have certain 
positive effects on the economy of rural areas in Ja pan.  This is because one of the objectives of 
the program is to contribute to the development of rural areas through promoting wood use, and in order to achieve the objective effectively and ef ficiently, assessment of the effect on the rural 
economy is necessary.  This requirement is imposed on all applicants regardless of their 
nationalities.  There can be various ways to prove the fulfilment of the requirement and various 
types of information to support them.  
For example, applicants can submit the information which indicates contribution of the wood to the 
economy of rural areas in any form, such as growth in employment or in sales in related industries 
through procurement or processing of the wood or construction of wooden houses. 
Question h:  We understand that, in order for wood products to be accepted to the 
program, it must be demonstrated, by spec ies, that the wood products come from a 
"growing resource".  Please clarify, if th e terminology "growing resource" is with 
respect to the specific region in which the sp ecies grows, or if it is to be considered 
across all forest regions, even if the specie s does not exist in other forest regions. 
Answer: 
As tree species whose volumes are increasing on a country basis are eligible under this program, 
forest data at a national level is required.  In a case where a certain species does not exist in other 
forest area in a country, and it is possible to demonstrate that the species does not grow in other 
areas and the data of resource in volume of the area concerned represents the whole country, 
such data can be regarded as one explaining the increase in resource volume of the whole country. 
In a case where it is difficult to prove the increase in resource volume of a certain tree species by 
a single data, applicants are allowed to submit a combination of several existing data to prove it. 
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