G/STR/N/17/JPN  
 
11 October 2018  
(18-6266) Page: 1/18 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE  
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
JAPAN 
The following communication, dated 5 October 2018, is being circulated at the request  of the 
Delegation of Japan.  
 
_______________  
 
 
1. LEAF TOBACCO  
 
I. Enumeration of State Trading Enterprises  
 
A. Identification of State Trading Enterprises  
 
Japan Tobacco Inc. (JT).   
 
B. Description of Products Affected (Including Tariff Item Number(s) En compassed in Product 
Description)  
 
Leaf tobacco (HS No. 2401.10, 2401.20, 2401.30, 2403.91).   
 
II. Reason and Purpose  
 
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
 
The tobacco production is monopolized by JT for promoting sound development of the tobacco 
industry under the provisions of the Tobacco Business Law.  Although private traders can import leaf 
tobacco, this monopoly in effect renders all the importation of leaf tobacco for the manufacture of 
tobacco in Ja pan dependent upon subsequent purchase by JT.   
 
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
Including Legal Provisions and Summary of Statutory or Constitutional Powers  
 
The monopoly of production of manufactured tobacco is stipulated in Article 8 of the Tobacco 
Business Law.   
 
III. Description of the Functioning of the State Trading Enterprise  
 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise  
 
JT is engaged predomi nantly in the manufacture and sales of tobacco products.  JT is also diversifying 
its business activities into pharmaceuticals, food  and real estate.   
 
B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  G/STR/N/17/JPN  
 
- 2 - 
 
  The importation of leaf tobacco and manufactured tobacco has been liberalized since 1  April 1985.  
However, as a consequence of the continuing monopoly of manufacturing tobacco by the Japan 
Tobacco Inc. (JT), the importation of leaf tobacco for the manufacture  of tobacco in Japan is in effect 
depende nt upon the purchase by JT.  
 
C. Type of Entities other than the State Trading Enterprise that are Allowed to Engage in 
Importation/Exportation and Conditions for Participation  
 
Any entity can engage in importation w ithout any allowance.   
 
D. How Import/Export Levels are Established by the State Trading Enterprise  
 
JT imports leaf tobacco on the basis of commercial consideration , taking into account supply and 
demand situations of manufactured tobacco, as well as quality, market price and other relevant 
characteristics of leaf tobacco.   
 
E. How Export Prices are Determined  
 
JT exports leaf tobacco on the basis of commercial consid eration.   
 
F. How the Resale Prices of Imported Products are Determined  
 
JT does not res ell imported leaf tobacco.   
 
G. Whether Long -Term Contracts are Negotiated by the State Trading Enterprise.  Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered Into by the Government  
 
No long -term contracts are negotiated by JT.   
 
H. Brief Description of Market Structure  
 
JT is obligated to acquire all the leaf tobacco produced by domestic tobacco cultivators who enter 
into contrac ted purchase agreements with JT.   
 
IV. Statistical Information  
 
(See attached Tables I – III on Tobacco).  
 
 
  
  G/STR/N/17/JPN  
 
- 3 - TABLE I  
STATE TRADING: JAPAN TOBACCO INC.  
STATISTICAL INFORMAT ION, IMPORTS  
Description of product 
(including HS numbers)  Fiscal year  Total quantity 
imported  
(tons)  Quantity imported 
by state trading 
enterprise  
(tons)  Average import 
price  
(¥/kg.)  Average 
representative 
domestic sales 
price (¥/kg.)  Mark -up 
(¥/kg.)  National production  
(tons)  
Leaf tobacco  
HS No. 2401.10, 2401.20, 
2401.30, 2403.91  2015 59,118  59,118  821 - - 18,687  
2016 50,117 50,117  671 - - 17,945  
2017 43,185  43,185  731 - - 19,023  
Source:  Ministry of Finance "Japan's Trade Statistics" – JT Data.   
TABLE II  
STATE TRADING: JAPAN TOBACCO INC.  
STATISTICAL INFORMAT ION, EXPORTS  
Description of product 
(including HS numbers)  Fiscal year  Total quantity 
exported  
(tons)  Quantity exported by 
state trading 
enterprise  
(tons)  Average 
procurement 
price  
(¥/kg.)  Average 
representative 
domestic sales 
price (¥/kg.)  Average export 
price  
(¥/kg.)  National production  
(tons)  
Leaf tobacco  
HS No. 2401.10, 2401.20, 
2401.30, 2403.91  2015 6,135  6,135  - - 37 18,687  
2016 5,686  5,686  - - 179 17,945  
2017 5,203  5,203  - - 35 19,023  
Source:  Ministry of Finance "Japan's Trade Statistics" – JT Data.   
  G/STR/N/17/JPN  
 
- 4 - TABLE III  
STATE TRADING:  JAPAN TOBACCO INC.  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES 
Description of product 
(including HS numbers)  Fiscal Year  Domestic purchases by 
state trading enterprise  
(tons)  National production  
(tons)  Domestic sales by state 
trading enterprise  
(tons)  National consumption  
(tons)  
Leaf tobacco  
HS No. 2401.10, 2401.20, 
2401.30, 2403.91  2015 18,687  18,687  - 67,359  
2016 17,945  17,945  - 61,772  
2017 19,023  19,023  - 55,105  
Source:  JT Data.  G/STR/N/17/JPN  
 
- 5 - 
 
  2. OPIUM  
 
I. Enumeration of State Trading Enterprises  
 
A. Identification of State Trading Enterprises  
 
The Government of Japan (The Ministry of Health, Labour and Welfare).   
 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description)  
 
Opium (HS No. 13.02.11).   
 
II. Reason and Purpose  
 
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
 
The purpose for maintaining the state trading enterprise is to achieve the rational 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.   
 
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
including  Legal Provisions and Summary of Statutory or Constitutional Powers  
 
Under the provisions of the Opium Law, only the Ministry of Health, Labour and Welfare is authorized 
as a state trading entity, which can conduct import and export of opium, purchase opiu m from the 
opium poppy cultivators and from research cultivators, and sell opium to narcotics manufacturers 
and narcotics research institution.   
 
The monopoly of import and export opium is stipulated in Article 2 of the Opium Law, but the Ministry 
of Healt h, Labour and Welfare does not export opium.   
 
The above mentioned regulations are based on the provision of the Single Convention of Narcotic 
Drugs, 1961.   
 
III. Description of the Functioning of the State Trading Enterprise  
 
A. Summary Statement Providin g Overview of Operations of the State Trading Enterprise  
 
The Ministry of Health, Labour and Welfare, as a state trading ent ity, imports opium from India.  
 
The Ministry of Health, Labour and Welfare determines the quantity of opium which is to be imported 
to Japan, on the basis of factors such as demand for opium in Japan and supply of opium in exporting 
country.  
 
B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
 
The rights to import and to export opium belong exclusively to the Ministry of Health, Labour and 
Welfare.  
 
The Ministry of Health, Labour and Welfare purchases all the opium which opium poppy cultivators 
or research cultivators have gathered.   
 
The Ministry of Health, Labour and Welfare determin es the price for purchase of the opium from 
opium poppy cultivators, after consulting with the Ministry of Finance, on the basis of factors such 
as the condition of production by opium poppy cultivators, import price of opium and other economic 
conditions.   
 
C. Type of Entities other than the State Trading Enterprise that are allowed to engage in 
Importation/Exportation and Conditions for Participation  G/STR/N/17/JPN  
 
- 6 - 
 
  There are no entities allowed to engage in import and export other than the Ministry of Hea lth, 
Labour and  Welfare.  
 
D. How Import/Export Levels are established by the State Trading Enterprise  
 
The Ministry of Health, Labour and Welfare determines the quantity of opium which is to be imported 
to Japan on the basis of factors such as demand for opium in Japan and supply of opium in exporting 
country.   
 
E. How Export Prices are determined  
 
The Ministry of Health, Labour and Welfare does not export opium.  
 
F. How the Resale Prices of Imported Products are determined  
 
The Ministry of Health, Labour and Welfare determines the resale price on the basis of factors such 
as import price and other expenses.   
 
G. Whether Long -Term Contracts are negotiated by the State Trading Enterprise.  Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Ent ered into by the Government  
 
No long -term contracts are negotiated by the Ministry of Health, Labour and Welfare.   
 
H. Brief Description of Market Structure  
 
The Ministry of Health, Labour and Welfare imports opium and purchases all the opium gathered by 
opium poppy cultivators or research cultivators.  The Ministry of Health, Labour and Welfare sells 
opium to narcotics manufacturers and proprietors of narcotics research institution.   
 
IV. Statistical Information  
 
(See attached Tables I – III on Opium).  
 
V. Reason why no foreign trade has taken place (as appropriate)  
 
All imported opium is used for medical and scientific purposes.  
 
All of the amount is for domestic consumption, not for export.   
  G/STR/N/17/JPN  
 
- 7 - TABLE I  
THE GOVERNMENT OF JA PAN (THE MINISTRY OF  HEALTH, LABOUR AND WELFARE)  
STATISTICAL INFORMAT ION, IMPORTS  
Description of 
product  Fiscal Year  Total quantity 
imported  
(kg.)  Quantity 
imported by state 
trading 
enterprise  
(kg.)  Average import 
price  
(¥/kg.)  Average 
representative 
domestic price 
(¥/kg.)  Mark -up National 
production  
(kg.)  
Opium  
(HS 13.02.11)  2015 78,600  
(J.F.Y. 2015) 78,600  
(J.F.Y. 2015) 11,008  25,376  - 1.1 
(J.F.Y. 2015) 
2016 90,000  
(J.F.Y. 2016) 90,000  
(J.F.Y. 2016) 9,444  24,956   1.1 
(J.F.Y. 2016) 
2017 36,000  
(J.F.Y. 2017) 36,000  
(J.F.Y. 2017) 9,912  23,812   1.1 
(J.F.Y. 2017) 
Japan Fiscal Year (J.F.Y.) is from April to March.  
TABLE II  
THE GOVERNMENT OF JA PAN (THE MINISTRY OF  HEALTH, LABOUR AND WELFARE)  
STATISTICAL INFORMATION, EXPORTS  
Description of 
product  Fiscal Year  Total quantity 
exported  
(kg.)  Quantity 
exported by 
state trading 
enterprise  Average 
procurement price  Average 
representative 
domestic 
sales price  Average 
export 
price  National production  
Opium  
(HS 13.02.11)  2015 0 
(J.F.Y. 2015) - - - - 1.1 
(J.F.Y. 2015) 
2016 0 
(J.F.Y. 2016) - - - - 1.1 
(J.F.Y. 2016) 
2017 0 
(J.F.Y. 2017) - - - - 1.1 
(J.F.Y. 2017) 
Japan Fiscal Year (J.F.Y.) is from April to March.  G/STR/N/17/JPN  
 
- 8 - 
 
  3. RICE, WHEAT AND BARLEY  
 
I. Enumeration of State Trading Enterprises  
 
A. Identification of State Trading Enterprises  
 
The Government of Japan. (The Ministry of Agriculture, Forestry & Fisheries (hereinafter referred to  
as "MAFF") ).  
 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description)  
 
Rice and its worked and/or prepared products (hereinafter referred to as "rice").   
 
Wheat, meslin, triticale and their processed produ cts (hereinafter referred to as "wheat").   
 
Barley and its processed products (hereinafter referred to as "barley").  (As for the tariff item 
numbers of specific products, see attached).   
 
II. Reason and Purpose  
 
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
 
MAFF is authorized to take measures to stabilize supply and demand situations as well as prices for 
such staple foods as rice, wheat and barley, for promoting stability of people’s live s and national  
economy, according to the Law for Stabilization of Supply -Demand and Price of Staple Food.   
 
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
Including Legal Provisions and Summary of Statutory o r Constitutional Powers  
 
MAFF is authorized to import  rice, wheat and barley, and is authorized to  export rice when particular 
necessity exist, based on the Law for Stabilization of Supply -Demand and Price of Staple Food.   
 
Legal provisions – Articles 30, 31, 32, 42 , 43 and 44 of the Law for Stabilization of Supply -Demand 
and Price of Staple Food.   
 
This law does not restrict the exportation  of rice, wheat and barley by the private sectors . 
 
III. Description of the Functioning of the State Trading Enterprise  
 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise  
 
MAFF mainly conducts the import of rice under the minimum access opportunities and wheat and 
barley under the current access opportunities, based on the Sche dule XXXVIII -JAPAN in the WTO 
Agreement.   
 
MAFF is not involved, in the marketing or distribution of over -quota imports of rice, wheat and barley, 
except for the collection of  a part of over -quota tariffs of such imports.   
 
B. Specification of Exclusive or  Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
 
MAFF is authorized to import rice, wheat and barley, and is authorized to export rice when particular 
necessity exists, based on the Law for Stabilization of Supply -Demand and Price of Staple Food.   
 
MAFF collects mark -ups on imported rice, wheat and barley which are bound in the 
Schedule  XXXVIII -JAPAN in the WTO Agreement.    
 
C. This law does not restrict the exportation of rice, wheat and barley by the private sectors.  
 
Type of Entities other than the State Trading Enterprise that are allowed to Engage in 
Importation/Exportation and Conditions for Participation  G/STR/N/17/JPN  
 
- 9 - 
 
  Private traders are allowed to  freely import  rice, wheat and barley subject to over -quota tariffs 
established in the Sch edule XXXVIII -JAPAN in the WTO Agreement.  
 
Private traders are allowed to freely export rice, wheat and barley.  
 
D. How Import/Export Levels are established by the State Trading Enterprise  
 
MAFF imports rice under the minimum access opportunities and wheat  and barley under the current 
access opportunities, both of which are established in the Schedule XXXVIII -JAPAN in the WTO 
Agreement.   
 
Taking into account of the requests from recipient countries, the Government of Japan provides 
assistance which recipien t countries use for purchasing food , based on the Food Assistance 
Convention. Using  the aforementioned assistance, the recipient countries may purchase rice from 
MAFF.  
 
E. How Export Pric es determined  
 
MAFF conducts no commercial export of rice, wheat and barley.   
 
F. How the Resale Prices of Imported Products are determined  
 
The sales prices for imported rice, wheat and barley are determined on the basis of such factors as 
import prices, management costs and other economic conditions.   
 
The sales prices fo r imported rice, wheat and barley are not above the sum of the respective 
purchase prices and the respective mark -ups bound in the WTO Agreement.   
 
Mark-ups on imported rice, wheat and barley are used for their management costs such as storage, 
buying and selling costs and so on.   
 
G. Whether Long -Term Contracts are negotiated by the State Trading Enterprise.  Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered into by the Government  
 
MAFF has no long -term contracts on the import and export of rice, wheat and barley.   
 
H. Brief Description of Market Structure  
 
Private marketing whose prices are freely decided is predominant in the Japanese rice market, and 
the government purchase from domestic market is limited only to the minimum amount necessary 
for official stockpile under the Law for Stabilization of Supply -Demand and Price of Staple Food.   
 
Most of wheat and barley consumed in Japan are imported.   
 
IV. Statistical Information  
 
(See attached Tables I – III).  
 
V. Reason  why no foreign trade has taken place  
 
None.  
 
VI. Additional Information  
 
None.   
  G/STR/N/17/JPN  
 
- 10 - TABLE I  
STATE TRADING: THE MINISTRY OF AGRI CULTURE, FORESTRY AND  FISHERIES  
STATISTICAL INFORMATION, IMPORTS  
(Unit:  1,000 tons (Mark -up: Yen/kg))  
Description of 
product(s) 
(including HS 
number(s))  Total quantity imported  Quantity imported by 
state trading 
enterprise  Average import 
price  Average 
representative 
domestic sales price  Mark -up National production  
1 2 3 4 5 6 7 
Rice 
  2015 668 2015FY  667 - - - - FY2015  125 FY2015  8,429  
FY2016  736 2016FY  735 - - - - FY2016  113 FY2016  8,550*1 
FY2017  711 2017FY  709 - - - - FY2017  n.a. FY2017  n.a. 
Wheat  
 FY2015  5,483  2015FY  5,478  - - - - FY2015  17 FY2015  1,004  
FY2016  5,436  2016FY  5,430  - - - - FY2016  17 FY2016  791*1 
FY2017  5,891  2017FY  5,762  - - - - FY2017  n.a. FY2017  n.a. 
Barley  FY2015  1,122  2015FY  975 - - - - FY2015  8 FY2015  177 
FY2016  1,223  2016FY  363 - - - - FY2016  8 FY2016  170*1 
FY2017  1,2001,122  2017FY  349 - - - - FY2017  n.a. FY2017  n.a. 
Note:  1. As for  the HS numbers, see attached.  
 2. The figures of columns  6, and 7  of rice in FY2017 are not yet available . 
 3. The figure with *1 in column 7 is tentative data.  
 4. Data source:  Ministry of Finan ce "Japan's Trade Statistics".  
  Ministry of Agriculture, Forestry and Fisheries "Food Bal ance Sheet" and related data.  
  
  G/STR/N/17/JPN  
 
- 11 - TABLE II  
STATE TRADING:  THE MINISTRY OF AGRI CULTURE, FORESTRY AN D FISHERIES  
STATISTICAL INFORMAT ION, EXPORTS  
(Unit: 1,000 tons, Yen/ton)  
Description of 
product(s) 
(including 
HS number(s))  Total quantity 
exported  Quantity exported 
by state trading 
enterprise  Average 
procurement price  Average 
representative 
domestic sales price  Average export 
price  National production  
1 2 3 4 5 6 7 
Rice FY2015  98 FY2015  90 FY2015  114,769  FY2015  207,126  - - FY2015  8,429  
FY2016  81 FY2016  70 FY2016  124,952  FY2016  178,361  - - FY2016  8,550*1 
FY2017  85 FY2017  73 FY2017  151,234  FY2017  n.a. - - FY2017  n.a. 
Note:   1. As for the  HS numbers, see attached.   
 2. The quantity in columns 3 is  for food aid.   
 3. The figures of columns 5  and 7 in FY2017 are not yet available .  
 4. The figures with *1 in column 7 is tentative data.  
 5. Data source:  Ministry of Agriculture, Forestry and Fisheries "Food Balance Sheet" and related data.  
 
  
  G/STR/N/17/JPN  
 
- 12 - TABLE III  
STATE TRADING:  THE MINISTRY OF AGRI CULTURE, FORESTRY AN D FISHERIES  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES 
(Unit:  1,000 tons)  
Description of product(s) 
(including HS number(s))  Domestic purchases by 
state trading enterprise  National production  Domestic sales by state  
trading enterprise  National consumption  
1 2 3 4 5 
Rice FY2015 250 FY2015 8,429  FY2015 996 FY2015 8,600  
FY2016 225 FY2016 8,550*1 FY2016 989 FY2016 8,644*1 
FY2017 198 FY2017 n.a. FY2017 n.a. FY2017 n.a. 
Wheat  FY2015 0 FY2015 1,004  FY2015 5,269  FY2015 6,583  
FY2016 0 FY2016 791*1 FY2016 5,209  FY2016 6,621*1 
FY2017 0 FY2017 n.a. FY2017 n.a. FY2017 n.a. 
Barley  FY2015 0 FY2015 177 FY2015 1,000  FY2015 1,944  
FY2016 0 FY2016 170*1 FY2016 358 FY2016 1,989*1 
FY2017 0 FY2017 n.a. FY2017 n.a. FY2017 n.a. 
 
Note:  1. As for the HS numbers, see attached.   
 2. The figures of columns  3 of rice, 4 and 5 in FY2017 are not yet available .  
 3. The figures with *1  in columns 3 and 5 are tentative data.  
 4. The figures of column s 2 of rice are the quantity of rice of successful  bids in tenders which MAFF conducted to purchase from the respective year's crop.   
 5. Data source:  Ministry of Agriculture, Forestry and Fi sheries "Food Balance Sheet" and related data.  
 G/STR/N/17/JPN  
 
- 13 - 
 
  1. Rice and its worked and/or prepared products  
 
1006.10.010  
1006.20.010  
1006.30.010  
1006.40.010  
1102.90.310  
1103.19.510  
1103.20.350  
1104.19.250  
1104.29.250  1901.2 0.122  
1901.20.162  
1901.90.142  
1901.90.587  
1904.10.211  
1904.20.211  
1904.90.120  
2106.90.517  
 
 
2. Wheat, meslin, triticale and their processed products  
 
 
1001.11.010  
1001.19.010  
1001.91.011  
1001.91.019  
1001.99.011  
1001.99.016  
1001.99.019  
1008.60.210  
1101.00.011  
1101.00.091  
1102.90.210  
1103.11.010  
1103.19.210  
1103.20.110  
1103.20.510  1104.19.111  
1104.19.121  
1104.29.111  
1104.29.121  
1108.11.010  
1901.20.131  
1901.20.151  
1901.90.151  
1901.90.171  
1904.10.221  
1904.20.221  
1904.30.010  
1904.90.210  
2106.90.214  
 
3. Barley and its processed products  
 
1003.10.010  
1003.90.011  
1003.90.019  
1102.90.110  
1103.19.110  
1103.20.410  
1104.19.410  1104.29.410  
1901.20.141  
1901.90.161  
1904.10.231  
1904.20.231  
1904.90.310  
2106.90.216  
 
  G/STR/N/17/JPN  
 
- 14 - 
 
  4. MILK PRODUCTS  
 
I. Enumeration of State Trading Enterprises  
 
A. Identification of State Trading Enterprises  
 
Agriculture and Livestock Industries Corporation (hereinafter referred to as "ALIC").   
 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description)  
 
Designated dairy products for general use (skimmed milk powder, skimmed milk solids, whole milk 
powder and solids, condensed milk, butter milk powder and other solids, whey and modified whey, 
butter and butter oil), hereinafter referred to as "designated dairy produc ts". As for the tariff item 
numbers of the specific products, see the notification on the administration of tariff quotas 
(G/AG/N/JPN/1).   
 
II. Reason and Purpose  
 
A. Reason and Purpose for Establishing and/or Maintaining State Trading Enterprise  
 
ALIC is authorized to take measures to stabilize supply/demand situations and price for milk 
products, to promote sound development of dairy and related industries and to improve national 
diet under Act on Stabilization of Livestock Management and the Agriculture and Livestock Industries 
Corporation Law.   
 
As a part of such measures, 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 p roducts.   
 
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
Including Legal Provisions and Summary of Statutory or Constitutional Powers  
 
Article 24 of Act on Stabilization of Livestock Management.   
 
Article 10  of the Agriculture and Livestock Industries Corporation Law.   
 
III. Description of the Functioning of the State Trading Enterprise  
 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise  
 
ALIC deals with in -quota imports of designated dairy products established in Sc hedule XXXVIII -
Japan in the WTO  Agreement.   
 
ALIC is not involved, in the marketing or distribution of over -quota imports of designated dairy 
products, except for the collection of a part of over -quota tariffs of such imports.   
 
B. Specification of Exclusive or Special Rights or Privileges Enjoyed by the State Trading 
Enterprise  
 
ALIC collects mark -ups on imported designated dairy products which are bound in Schedule XXXVIII -
Japan in the WTO Agreement.   
 
C. Type of  Entities other than the State Trading Enterprise that are allowed to Engage in 
Importation/Exportation and Conditions for Participation  
 
Private traders can freely import designated dairy products subject to over -quota tariffs established 
in Schedule  XXXVIII -Japan in the WTO Agreement.   
 G/STR/N/17/JPN  
 
- 15 - 
 
  D. How Import/Export Levels are established by the State Trading Enterprise  
 
ALIC imports designated dairy products under the current access opport unities established in 
Schedule  XXXVIII -Japan in the WTO Agreement.   
 
E. How Export Prices are determined  
 
This item is not applicable for ALIC.   
 
F. How the Resale Prices of Imported Products are determined  
 
The resale prices are determined by a tender.   
 
The prices, however, are not to be above the sum of the ALIC purchase prices and the mark -ups 
bound in Schedule XXXVIII -Japan in the WTO Agreement.   
 
G. Whether Long -Term Contracts are negotiated by the State Trading Enterprise.  Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered into by th e Government  
 
ALIC has no long term contracts on the import of designated dairy products.   
 
H. Brief Description of Market Structure  
 
Total national demand for milk and milk products in FY 2014 was 11.69 million tons milk equivalent.   
 
7.34 million tons of  raw milk were produced in FY 2016 of which 3.30 million tons were processed 
for milk products.  Annual production of butter, skimmed milk powder and cheese in FY 2016 were 
64 thousand tons, 124 thousand tons and 47 thousand tons, respectively.  
 
4.55 millio n tons milk equivalent of milk products were imported to meet the demand in FY 2016.  
Annual imports of butter, skimmed milk powder and cheese in FY 2016 were  12 thousand tons, 6 
thousand tons (excluding skimmed milk powder for animal feed) and 256 thousand  tons, 
respectively.  
 
IV. Statistical Information  
 
(See attached Tables I – III).  
 
V. Reason why no foreign trade has taken place  
 
None.   
 
VI. Additional Information  
 
None.   
  G/STR/N/17/JPN  
 
- 16 - TABLE I  
STATE TRADING:  AGRICULTURE AND LIVE STOCK INDUSTRIES CORPORATION  
STATISTICAL INFORMAT ION, IMPORTS  
(Unit: Metric tons, Yen/Kg)  
Description of products 
(including HS numbers)  Total quantity 
imported  Quantity imported  
by state trading  
enterprise  Average import 
price  Average representative 
domestic sales price  Mark-ups National 
production  
1 2 3 4 5 6 7 
Skimmed milk powder and 
skimmed milk solids  
(0402.10, 0402.21,0402.29)  17,357  (2015） 
6,016（2016） 
35,405（2017）*1 15,217  
3,908  
33,306*1 303  
206 
247*1 650 
650 
663 - 
- 
- 130,184 
123,500 
121,581*1 
Whole milk powder and other 
solids  
(0402.21, 0402.29)  87（2015） 
166（2016) 
79（2017) *1 0 
0 
0 - 
- 
- 891 
891 
907 - 
- 
- 12,526 
10,382 
9,866*1 
Condensed milk  
(0402.99)  23（2015） 
259（2016） 
22（2017）*1 0 
204 
0 - 
207 
- 391 
392 
397 - 
- 
- 34,560  
34,851 
34,042*1 
Buttermilk powder and other 
solids  
(0403.90)  18（2015） 
7（2016） 
371（2017）*1 0 
0 
0 - 
- 
- *2 
*2 
*2 - 
- 
- *2 
*2 
*2 
Whey and modified whey  
(0404.10)  16,157（2015） 
17,322（2016） 
19,949（2017）*1 5,890  
4,465  
6,520*1 219  
128 
177*1 *2 
*2 
*2 - 
- 
- *2 
*2 
19,615*1 
Butter and butter oil  
(0405.10, 0405.20, 0405.90)  13,913（2015） 
12,860（2016） 
10,259（2017）*1 13,173  
12,308  
9,731*1 416  
367 
631*1 1,268 
1,254 
1,272 - 
- 
- 66,295 
63,583 
60,086*1 
Note: (*1) The figures with *1 in column  2, 3, 4 and 7 are tentative data.  
 (*2) No official data available.  
  
  G/STR/N/17/JPN  
 
- 17 - TABLE II  
STATE TRADING:  AGRICULTURE AND LIVE STOCK INDUSTRIES COR PORATION  
STATISTICAL INFORMAT ION, EXPORTS  
(Unit: Metric tons, Japanese Yen)  
Description of products 
(including HS numbers)  Total quantity 
exported  Quantity expor ted 
by state trading 
enterprise  Average 
procurement  
price  Average representative 
domestic sales price  Average export 
price  National production  
1 2 3 4 5 6 7 
Skimmed milk powder and 
skimmed milk solids  
(0402.10)  81（2015） 
50（2016） 
36（2017）*1 0 
0 
0 - 
- 
- 650 
650 
663 - 
- 
- 130,184 
123,500 
121,581*1 
Whole milk powder and 
other solids  
(0402.21, 0402.29)  120（2013） 
162（2014） 
215（2015）*1 0 
0 
0 - 
- 
- 891 
891 
907 - 
- 
- 12,526 
10,382 
9,866*1 
Condensed milk  
(0402.99)  68（2013） 
77（2014） 
87（2015）*1 0 
0 
0 - 
- 
- 391 
392 
397 - 
- 
- 34,560  
34,851 
34,042*1 
Buttermilk powder and 
other solids  
(0403.90)  70（2015） 
129（2016） 
45（2017）*1 0 
0 
0 - 
- 
- *2 
*2 
*2 - 
- 
- *2 
*2 
*2 
Whey and modified whey 
(0404.10)  1（2015） 
18（2016） 
1（2017）* 0 
0 
0 - 
- 
- *2 
*2 
*2 - 
- 
- *2 
*2 
*2 
Butter and butter oil  
(0405.10, 0405.20, 
0405.90)  2（2015） 
2（2016） 
5（2017）*1 0 
0 
0 - 
- 
- 1,268 
1,254 
1,272 - 
- 
- 66,295  
63,583  
60,086 *1 
Note: (*1) The figures with *1 in column 2 and 7 are tentative data.  
 (*2) No official data available.  
  
  G/STR/N/17/JPN  
 
- 18 - TABLE III  
STATE TRADING:  AGRICULTURE AND LIVE STOCK INDUSTRIES COR PORATION  
STATISTICAL INFORMAT ION, DOMESTIC ACTIVI TIES 
(Unit: Metric tons, Japanese Yen/Kg.)  
Description of products  
(including HS numbers)  Domestic purchases by 
state trading enterprise  National production  Domestic sales by state 
trading enterprise  National consumption  
1 2 3 4 5 
Skimmed milk powder and skimmed milk solids  
(0402.10, 0402.21 ,0402.29 ) 0（2015） 
0（2016） 
0（2017） 130,184 
123,500 
121,581*1 0 
0 
0 137,000 
137,000*1 
*2 
Whole milk powder and other solids  
(0402.21, 0402.29)  0（2015） 
0（2016） 
0（2017） 12,526 
10,382 
9,866*1 0 
0 
0 12,000  
11,000*1 
*2 
Condensed milk  
(0402.99)  0（2015） 
0（2016） 
0（2017） 34,560  
34,851 
34,042*1 0 
0 
0 36,000 
38,000*1 
*2 
Buttermilk powder and other solids  
(0403.90)  0（2015） 
0（2016） 
0（2017） *2 
*2 
*2 0 
0 
0 *2 
*2 
*2 
Whey and modified whey  
(0404.10)  0（2015） 
0（2016） 
0（2017） *2 
*2 
*2 0 
0 
0 *2 
*2 
*2 
Butter and butter oil  
(0405.10, 0405.20, 0405.90)  0（2015） 
0（2016） 
0（2017） 66,295  
63,583  
60,086*1 0 
0 
0 75,000 
74,000*1 
*2 
Note: (*1) The figures with *1 in column 3 and 5 are tentative data.  
 (*2) No official data available.  
 
__________