G/SCM/Q2/JPN/75  
 
31 March 2016  
(16-1806)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
REPLY FROM JAPAN TO THE QUESTI ON POSED BY THE UNITED STATES1 
REGARDING THE NEW AND FULL NOTIFICATION OF JAPAN2 
The following communication, dated 25 March 2016, is being circulated at the request of the 
Delegation of Japan.  
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  Local Government Programs  
 
Question 
Based upon a review of the notification of local government programs, it appears that 
Japan only notified one program related to  the industrial/manufacturing sector, the 
"Subsidy for Research and Developmen t of Next Generation Technology".
3 However, a 
search of the JETRO (Japan Extern al Trade Organization) website, 
https://www.jetro.go.jp/en/invest/region , reveals that there may be other local 
government programs providing potent ial subsidies and incentives to the 
industrial/manufacturing sector that should be reported as th ey appear to fall within the 
definition of a subsidy and specific under the Agreement on Subsidies and 
Countervailing Measures (SCM). Therefore, plea se consider notifying these programs or 
discuss why they may not be subject to the notification obligation. 
Aichi Prefecture 
1. Tax Reduction Fund to Countermeasure Deindustrialization 
2. Subsidy Program to Promote Investme nts in the Cutting-Edge Sectors of 
the 21st Century 
(See https://www.jetro.go.jp/en /invest/region/aichi/html) 
Chiba Prefecture 
1. Subsidies for Companies Intendin g to Locate in Chiba Prefecture 
(See http://www.businesssupport-chib a.jp/eng/incentive/subsidies ) 
                                               
1 G/SCM/Q2/JPN/74. 
2 G/SCM/N/284/JPN. 
3 Of the 11 Local Government programs that we re notified only one program related to the 
industrial/manufacturing sector; the ot her 10 programs were for agricultural  products and the traditional craft 
products industry. G/SCM/Q2/JPN/75 
 
- 2 - 
 
  Fukui Prefecture 
1. Business Location Promotion Subsidy 
2. Incentive to Assist in Accepting Companies 3. Tax Exemption under the Business Location Promotion Act 
(See https://www.jetro.go.jp/en /invest/region/fukui/html) 
Fukuoka Prefecture 
1. Subsidies for Promoting Investment for Foreign Companies 
(See https://www.jetro.go.jp/en /invest/region/fukuoka/html) 
Gifu Prefecture 
1. Subsidy to Attract Businesses to  Gifu Large-sized Vacant Factory 
2. Preferential Treatment Based on  Business Location Promotion Act 
(See https://www.jetro.go.jp/ en/invest/region/gifu/html) 
Hiroshima Prefecture 
1. Location Subsidy for Industrial Parks 
2. Enhancement Promotion Subsidy for Key Industries 
(See https://www.jetro.go.jp/en /invest/region/hiroshima/html) 
Iwate Prefecture 
1. Subsidy for Operation Costs to Promote Companies to Locate in Iwate Prefecture 
2. Support System Based on the Ordinance to  the Activation of the Industry in the 
Designated Area 
(See https://www.jetro.go.jp/en /invest/region/iwate/html) 
Kagoshima Prefecture 
1. Capital Investment Promotion Subsidy for Production in Kagoshima  
(See https://www.jetro.go.jp/en /invest/region/kagoshima/html) 
Kanagawa Prefecture 
1. Financial Grant to Promote Ne w Locations if Foreign Businesses 
(See https://www.jetro.go.jp/en /invest/region/kanagawa/html) 
Mie Prefecture 
1. Subsidy for Growing Industry Location 
2. Subsidy to Mother Factories Location 3. Location Subsidy for Asia Base of Foreign-Affiliated Companies 
4. Location Subsidy for Utilizing Regional Resources 
(See https://www.jetro.go.jp/ en/invest/region/mie/html) G/SCM/Q2/JPN/75 
 
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  Niigata Prefecture 
1. Support for Location of Prefectural Industrial Parks 
2. Business Location Promotion Subs idy for Foreign-Affiliated Companies 
(See https://www.jetro.go.jp/en /invest/region/niigata/html) 
Oita Prefecture 
1. Large-Scale Investment Promotion Subsidy 
(See https://www.jetro.go.jp/en /invest/region/oita/html)  
Okayama Prefecture 
1. Location Promotion Subsidy for Large Factories 
2. New Business Location Promotion Subsidy 3. Subsidy for the Investment in Setting up Mother Plant 
(See https://www.jetro.go.jp/en /invest/region/okayama/html) 
Osaka Prefecture 
1. Subsidy for Business Start-Up of Foreign-Capital Enterprise 
2. Subsidy for Promotion of Investment 
3. Kansai Innovation Comprehensive Global Special Zone 4. Taxation System for Indust rial Accumulation Promotion 
(See https://www.jetro.go.jp/en /invest/region/osaka/html) 
Shizuoka Prefecture 
1. Subsidies for New Facility Establishment 
2. Subsidies for Land Acquisition and New Employment 
(See https://www.jetro.go.jp/en /invest/region/s hizuoka/html) 
Tochigi Prefecture 
1. Tochigi Prefecture Industry Locati on and Accumulation Promotion Subsidy 
2. Tochigi Prefecture Industry Establis hment and Integration Promotion Support 
Subsidy 3. Industry Location Promotion Fund (Tochigi Prefecture  Financing System) 
4. Support System for the Act on the Pr omotion of Establishment of Enterprises 
(See https://www.jetro.go.jp/en /invest/region/tochigi/html) 
Reply 
The subsidies referred to were not included in the Japan's 2015 notification as specificity does not 
exist: those subsidies were in practice provided to a wide range of manufacturers and not confined 
to specific sectors.  
Meanwhile, please note that " Subsidy for the Investment in Setting up Mother Plant " by Okayama 
Prefecture was implemented as of 1 April 2014 and thus was not included in the Japan's 2015 
notification which covers the period up to FY2013 (April 2013-March 2014). 
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