WT/TPR/M/351/Add.1  
27 April 2017  
(17-2322) Page: 1/356 
Trade Policy Review Body  
8 and 10 March 2017  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  TRADE POLICY REVIEW  
JAPAN 
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Ms. Irene Young (Hong Kong, China)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Japan .1 
 
 
Organe d'examen d es politiques commerciales  
8 et 10 mars 2017  
EXAMEN DES POLITIQUE S COMMERCIALES  
JAPON 
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Présidente : S.E.  Mme. Irene Young (Hong Kong, Chine)  
Le présent document contient les questions écrites communiquées à l'avance par le s 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Japon .1 
 
 
Órgano de Examen de las Políticas Comerciales  
8 y 10 de marzo de 2017  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
JAPÓN 
ACTA DE LA REUNIÓN  
Addendum  
Presidenta: Excma.  Sra. I rene Young (Hong Kong, China)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Japón .1 
                                                
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/351/Add.1  
 
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  Content s 
1. AUSTRALIA  ................................ ................................ ................................ ..................  4 
REVISED ANSWER FROM JAPAN - AUSTRALIA  ................................ ...............................  22 
2. SWITZERLAND  ................................ ................................ ................................ ...........  23 
REVISED ANSWER - SWITZERLAND  ................................ ................................ ...............  25 
3. HONG KONG, CHINA  ................................ ................................ ................................ ... 26 
4. CANADA  ................................ ................................ ................................ .....................  30 
REVISED ANSWERS - CANADA  ................................ ................................ .......................  44 
ADDITIONAL REPLIES - CANADA  ................................ ................................ ...................  45 
5. MOLDOVA, REPUBLIC  OF ................................ ................................ ............................  45 
6. KOREA, RE PUBLIC OF  ................................ ................................ ................................ . 47 
7. UNITED STATES  ................................ ................................ ................................ .........  49 
ADDITIONAL QUESTIONS  – UNITED STATES  ................................ ................................ .. 62 
REVISED ANSWER - UNITED STATES  ................................ ................................ ..............  63 
ADDITIONAL REPLIES - UNITED S TATES  ................................ ................................ ........  63 
8. EUROPEAN UNION  ................................ ................................ ................................ ..... 64 
ADDITIONAL QUESTIONS  –EUROPEAN UNION  ................................ ...............................  79 
9. MALAYSIA  ................................ ................................ ................................ ..................  80 
ADDITIONAL REPLIES - MALAYSIA  ................................ ................................ ................  82 
10. UKRAINE  ................................ ................................ ................................ ..................  86 
11. SINGAPORE  ................................ ................................ ................................ ..............  94 
12. BRAZIL  ................................ ................................ ................................ .....................  95 
13. INDONESIA  ................................ ................................ ................................ ............  102  
ADDITIONAL QUESTIONS  - INDONESIA  ................................ ................................ ....... 109  
ADDITIONAL ANSWERS - INDONESIA  ................................ ................................ ..........  117  
14. CHINA, PEOPLE'S REPUBLIC OF  ................................ ................................ .............  118  
ADDITIONAL REPLIES - CHINA  ................................ ................................ ....................  125  
15. RUSSIAN FEDERATI ON ................................ ................................ ...........................  146  
ADDITIONAL REPLIES - RUSSIAN FEDERATION  ................................ ...........................  158  
16. NORWAY  ................................ ................................ ................................ ................  163  
17. THE SEPARATE CUS TOMS TERRITORY OF TA IWAN, PENGHU, KINMEN  AND 
MATSU  ................................ ................................ ................................ .........................  166  
18. NEW ZEALAND  ................................ ................................ ................................ ....... 172  
19. INDIA  ................................ ................................ ................................ .....................  178  
20. THAILAND  ................................ ................................ ................................ ..............  198  
21. PERU  ................................ ................................ ................................ ......................  202  
22. MEXICO  ................................ ................................ ................................ ..................  205  
23. COLOMBIA  ................................ ................................ ................................ .............  212  
24. COSTA RI CA ................................ ................................ ................................ ...........  213  
25. CHILE  ................................ ................................ ................................ .....................  214  
26. GUATEMALA  ................................ ................................ ................................ ...........  219  WT/TPR/M/351/Add.1  
 
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  27. ECUADOR  ................................ ................................ ................................ ...............  220  
PREGUNTAS ADICIONALE S DE ECUADOR  ................................ ................................ ..... 223  
28. PARAGUAY  ................................ ................................ ................................ .............  228  
29. ARGENTINA  ................................ ................................ ................................ ............  229  
ADDITIONAL ANSWERS - ARGENTINA  ................................ ................................ .........  231  
30. KENYA  ................................ ................................ ................................ ....................  238  
ADDITIONAL RESPONSES  - KENYA  ................................ ................................ ...............  239  
31. MONGOLIA  ................................ ................................ ................................ .............  239  
32. TURKEY  ................................ ................................ ................................ ..................  240  
ADDITIONAL REPLIES T O TURKEY  ................................ ................................ ...............  247  
33. EL SALVADOR  ................................ ................................ ................................ .........  259  
34. SAUDI ARABIA, KI NGDOM OF  ................................ ................................ ................  260  
35. OMAN  ................................ ................................ ................................ .....................  260  
ANNEX  ................................ ................................ ................................ .........................  261  
 WT/TPR/M/351/Add.1  
 
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  1. AUSTRALIA  
Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Impor ts 
3.1.1 Customs procedures and requirements  
3.1.1.1 Transparency and legal framework  
The report states that complaints against Japan Customs' decisi ons may be made to the 
Director -General of Customs within three months of the decision. Further appeals may  be lodged 
with the Minister of Finance within one month of the decision by the Director -General of Customs. 
The number of complaints and appeals against Customs totalled 54 in 2014 and 36 in 2015. The 
Administrative Appeal Act was revised in 2014 and the appeal process was changed in April 2016.4 
The Director -General of Customs and the Minister of Finance review administrative appea ls against 
customs authorities.  
 
Question 1  
Can Japan please provide additional information on how many appeals in 2014 and 20 15 were 
found in favour of the complainant?  
 
RESPONSE  
Among the complaints and appeals that were lodged against Customs in 2014 and in 2015, the 
number of cases that were found in favor of complainants were 16 and 8, respectively.  
 
Report by the Secretaria t (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
3.1.1.3 Release and clearance of goods  
Page 30, Paragraph 3.13  
The report states that Japan has several systems in place to expedite the release and clearance of 
goods.  
 
Question 2  
Can Japan please provide additional information on the uptake of electronic systems in lieu of the 
current paper and fax based systems? Can Japan please provide additional information on its move 
towards electronic certification?  
 
RESPONSE  
In 1978, Japan introduced Air -NACCS as an electronic system covering air cargo import 
declarations and other related procedures. The coverage of Air -NACCS was expanded later to 
include export procedures,  and extended to other major airpo rts throughout Japan. Then, 
Sea-NACCS was introduced in 1991 and the coverage of Air -NACCS and Sea NACCS was expanded 
to all the seaports and airports in Japan in 1999. Now, Air -NACCS and Sea -NACCS are integrated 
into one single NACCS. In 2015, about 99% of all import/export declarations were electronically 
processed through NACCS. NACCS has significantly reduced the overall time for customs clearance 
and other related procedures, compared to manual processing without using  the system.  
Importers/exporters are notified electronically of the permit of their import/export through NACCS, 
when they decla re using NACCS.  
 
For details about NACCS, pl ease see the following web page: 
http://www.naccs.jp/e/aboutnaccs/aboutnaccs.html . 
 WT/TPR/M/351/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.3 Rules of origin  
Page 32, para 3.20  
The Secretariat report states Japan also applies preferential rules of origin under the G eneralized 
System of Preferences (GSP) […] to benefit from preferential duties, certificates of origin, issued 
by authorized institu tions in the exporting country.  
 
Question 3  
Could Japan provide an update on any progress to implement the Ministerial Decis ion on 
Preferential Rules of Origin for LDCs from Nairobi, and include an explanation of any aspects of the 
Ministerial Decision that Japan does not intend to implement.  
 
RESPONSE   
In accordance with paragraph 4.2 of the Nairobi Ministerial Decision on pre ferential rules of origin 
for least developed countries, Japan has submitted the communication regarding its 
implementation of the provisions of the Decision to the Committee on Rules of Origin on December 
2016.  
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.1 MFN applied tariff  
Page 34, Paragraph 3.25  
The report states that, Japan 's import tariffs on agricultural products, with an average of 16.3%, 
are higher  than tariffs on non -agricultural products, with an average of 3.6%. Furthermore, the 
standard deviation of 33.4 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 about 390%. In addition, 17.5% of ag ricultural tariff lines are 
non-ad valorem . 
The report also notes that the quota allocation method for agricultural lines remains complex. 
Australia agrees with these comments.  
 
Question 4  
Does Japan have any plans to simplify the presently complicated system of tariffs and levies 
applied to sugar imports and dairy imports, which represent a barrier and discourage efficient 
commercial arrangements between importers and overseas s uppliers of food and agricultural 
goods including ingredients used in the Japanese food -processing sector?  
 
RESPONSE  
The Government of Japan administrates the current system of tariffs and levies applied to sugar 
and dairy imports, in a manner consistent w ith the WTO Agreement. The Government of Japan 
continues to encourage efficient commercial arrangements by providing relevant information 
regarding our import system to stakeholders, including importers and overseas suppliers.  
 
Report by the Secretariat (W T/TPR/S/351)  
 
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.6 Standards and other technical requirements  
Page 61, para 3.126  
The report lists the main agencies responsible for standards, technical requireme nts, and 
conformity assessment.  
 
Question 5  
Could Japan outline the consultation process involved in the development of a mandatory standard 
or technical regulation in Japan?  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
In general, the agency responsible hears opinions from stakeholders and prep ares the draft of a 
mandatory standard or technical regulation. The agency submits the draft to relevant advisory 
council of the agency, which is composed of members from industries, academics, representatives 
of consumers and so on, for deliberation. The council deliberates the draft and prepares its 
proposal. Then, public comments for the proposal are invited. After that the council deliberates on 
the proposal, at which time the submitted comments are taken into consideration, and reports the 
result of th e deliberation to the competent Minister. Finally, public announcement of the 
mandatory standard or technical regulation is carried out by publication in the Official Gazette.  
 
Question 6  
How could a foreign business participate in the standards developmen t process for technical 
regulations?  
 
RESPONSE  
Japan has been implementing a transparent process as follows, in order to give opportunities for 
stakeholders, including foreign parties, to participate in the process.  
a) Any stakeholders can submit their com ments at the opportunities of public comments 
mentioned in the answer for Q5. Relevant information is uploaded on the relevant website.  
b) Based on the WTO/TBT Agreement, Japan announces publicly to allow stakeholders to have 
comment submission period (at least 60 days) before establishment or revision of technical 
regulations.  
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.6 Standards and other technical requirements  
Page 61, para 3.127   
The Secretariat report states that as at 31 March 2016, there were 10,542 Japan ese Industrial 
Standards (JIS).  
 
Question 7  
What percentage of these are mandatory standards versus voluntary standards?  
 
RESPONSE  
All the JIS are voluntary st andards, while some acts refer to JIS in their technical regulations.  
 
Question 8  
What percentage of JIS mandatory standards are aligned to international standards?  
 
RESPONSE  
All the JIS are voluntary standards. See the answer for Q7.  
97 % of all JIS that  have corresponding international standards are harmonized with the 
international standards.  
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 Trade Policies and Practices by Measure  
3.3 Measure Affecting Production and Trade  
3.3.7 Sanitary and phytosanitary m easures  
Page 63, Paragraph 3.142  
The report states that, according to Japanese authorities, SPS measures applied by Japan are 
based on the relevant international standard and that when corresponding international standards 
do not exist, domestic standards or technical regulations are needed.  
 
Question 9  
Does Japan have plans to facilitate agricultural trade further by increasing the harmonisation of its 
food safety requirements and phytosanitary treatment requirements with international standards 
and/or by accepting equivalence of other countries ' systems and testing? In particular, would 
Japan re -consider its view on the International Plant Protection Convention 's assessment that the WT/TPR/M/351/Add.1  
 
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  efficacy of phytosanitary treatments can be considered commodity -wide rath er than specific to 
particular varieties or cultivars?  
 
RESPONSE  
SPS measures of Japan are in general based on relevant international standards or, where its 
measures do not conform to relevant international standards, they are based on scientific risk 
assessment, in accordance with the SPS Agreement. Furthermore, with a view to harmonizing with 
relevant international standards, Japan reviews its measures where necessary.  
In addition, Japan would accept other countries ' systems and testing as equivalent upo n request, if 
Japan determines the measures are equivalent as Japan 's, based upon information by exporting 
countries.  
Regarding food safety on imported foods, Japan accepts the results of inspections by inspection 
agencies that foreign governments recogniz e that they have certain control by foreign government 
agencies and that they have internationally valid inspection accuracy.  
For the detailed procedures of registration to the Japan 's list of Foreign Official Laboratories and 
the Japan 's list of Foreign O fficial Laboratories, please refer to the following  URLs. 
http://www.mhlw.go.jp/english/topics/importedfoods/dl/1 -10.pdf  
http://www.mhlw.go.jp/english/topics/importedfoods/1 -10.html  
 
Regarding the International Plant Protection Convention (IPPC), Japan has  already established 
some phytosanitary treatment requirements on a commodity basis, instead of variety or cultivar 
basis, pursuant to the relevant provisions included in Article VII of the IPPC.  
 
Question 10  
Would Japan consider aligning its Maximum Resid ue Limits (MRLs) and additives standards with 
international CODEX standards? (For example, hydrogen peroxide on sultanas and fludioxinil for 
mangoes.)  
 
RESPONSE  
Japan takes into account the Codex standards whenever reviewing Maximum Residue Limits 
(MRLs) f or agricultural chemicals and food additive standards, in accordance with Article 3.1 of the 
WTO SPS Agreement. Japan, when necessary, sets food standards different from Codex standards 
based on scientific evidence. For example, more restrictive MRLs of pe sticide in some commodities 
can be established to protect consumers ' health if dietary exposure estimated from national 
consumption data is above health -based guidance value (e.g. ADI, ARfD). This measure is 
consistent with Article 3.3 of the SPS Agreement . 
Japan recognizes that there are no international standards on hydrogen peroxide on sultanas, and 
that the Codex MRL for fludioxinil in mangoes was established in terms of post -harvest use. Japan 
may review or set food standards if requests are made and s upporting data are provided.  
Japan continues to make an effort to establish food standards on the basis of sound science and in 
harmony with international standards.  
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 M easures Affecting Production and Trade  
3.3.8 Labelling and Packaging Requirements  
Page 66, Paragraph 3.153  
The report states that, with regard to food labelling, some food labelling provisions, which had 
previously been scattered across three separate laws , have been gathered into a single new Food 
Labelling Act promulgated on 28 June 2013. To implement the Act, a Food Labelling Standard 
establishing specific labelling requirements was defined. The Act and Standard entered into force 
on 1 April 2015.  
Austr alia understands that Japan mandates country of origin labelling for a range of processed 
foods under its Food Labelling Law, and is considering expanding the scope of its country of  origin 
labelling requirements.  
 
Question 11  
Could you please outline the current requirements for country of origin labelling, and the changes 
that are being considered?  
 
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
Under the current rules, with regard to part of the processed food domestically produced and sold, 
Japan imposes the obligation to indicate the orig in of ingredients for processed food products, 
composing more than 50% of the weight by a single agricultural /livestock /fishery ingredient. 
Imported processed foods are not required to contain labelling of place of origin of their 
ingredients, but it is required to label country of origin.  
Japan intends to revise the Food Labeling Standards (Ordinance of the Cabinet Office No.10 of 
2015) in order that all processed foods domestically produced will be required to label place of 
origin for the largest ingre dients, by weight in the final products. But the rules remain completely 
unchanged for imported processed food.  
Question 12  
When does Japan intend on notifying its proposed changes to the WTO committee on technical 
barriers to trade?  
 
RESPONSE  
Japan is pla nning to submit the relevant notification to the WTO Secretariat, in accordance with 
the TBT Agreement in 2017, before the publication of the relevant amendment of the Food 
Labeling Standards.  
 
Question 13  
Can Japan please provide additional information re garding the labelling of imported Wagyu beef ?  
 
RESPONSE  
The origin labeling requirements, which are considered for revision, cover all processed foods 
manufactured or processed in Japan. But non -prepackaged foods* are excluded.  
The labeling requirements f or perishable foods remain unchanged.  
* Non -prepackaged foods: When one eats or buy processed foods, one can know the ingredients of 
foods at the establishment where they are sold. (e.g. foods at restaurants or sold by measure.)  
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.10 Intellectual property rights  
Page 77, Table 3.31 Summary of protection of intellectual property rights, 2016  
Australia notes that Japan publishes details of Geographical Indicators (GIs) that have been 
applied for and those that are registered on the MAFF website. The information on those that are 
protected is very brief and does not contain the rules that a product mu st meet in order to use the 
GI. 
 
Question 14  
Could Japan please advise as to whether information on the rules for registered GIs are publicly 
available, and if so, prov ide a link to this information?  
 
RESPONSE  
The information regarding GI is made available to the general public. The req uested information is 
available on the website of the Ministry of Agriculture Fisheries and Food ("MAFF") as follows  
(Japanese): http://www.maff.go.jp/j/shokusan/gi_act/outline/index.html . 
 
For English translation of GI Act, please see the below 
website:ht tp://www.japaneselawtranslation.go.jp/law/detail/?ft=1&re=01&dn=1&co=01&ia=03&x
=0&y=0&ky=%E7%89%B9%E5%AE%9A%E8%BE%B2%E6%9E%97&page=1 . 
(The amended GI Act translated in English will be posted on the database shortly.)  
 
Question 15  
Australia notes that Kobe beef has been protected as a GI. Could Japan clarify whether Kobe beef 
is required to be born and raised in Kobe? For how long would the animal need to be raised in 
Kobe if not born there?  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
The registered GI producer group (Kobe Beef Marketing and  Distribution Promotion Association) 
established criteria for Kobe Beef in 1983 and has distributed the certified beef to the market. The 
same criteria was adopted for the GI Kobe Beef.   
To be precise, Kobe beef must be the bullock or virgin Tajima cow bor n in Hyogo Prefecture from a 
Tajima cow having a pure lineage, and such bullock or virgin cow has been necessarily bred and 
raised by designated farmers in Hyogo prefecture (the period is during the age of 28 months to 60 
months) and slaughtered at one of the designated slaughterhouses in Hyogo prefecture. It must 
also pass strict grading for BMS (Beef Marbling Standard), weight limitations and other criteria. For 
the reason, the whole production process must be taken place in Hyogo prefecture.  
For your re ference, "Kobe" is the capital city of Hyogo prefecture, and "Tajima" is the region of 
northern Hyogo Prefecture.  
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures affecting production and trade  
3.3.10 Intel lectual property rights  
3.3.10.1 Intellectual property rights Overview  
Page 76, Table 3.31 – Copyright and related rights  
 
Question 16  
Have the copyright infringement exceptions in Japan 's Copyright Law relating to personal or family 
use, and educational p urposes, been tested in the Japanese court system? Is further guidance on 
this prescribed in regulation, or other material?  
 
RESPONSE  
The followings are examples of judicial judgements on exceptions of copyright for personal or 
family use. The Government o f Japan has no official regulation or guideline concerning these 
exceptions.  
- Sho 48 (wa) No.2198  
http://www.courts.go.jp/app/files/hanrei_jp/373/014373_hanrei.pdf  (Japanese only)  
- Hei 17 (ne) No.3258  
http://www.courts.go.jp/app/files/hanrei_jp/816/034816_h anrei.pdf  (Japanese only)  
- Hei 25 (ne) No.10089  
http://www.courts.go.jp/app/files/hanrei_jp/579/084579_hanrei.pdf  (Japanese only)  
As far as we know, there is no specific judicial judgement on exceptions of copyright for 
educational use. However, the Governm ent of Japan published the explanatory material for these 
exceptions.  
http://www.bunka.go.jp/seisaku/chosakuken/seidokaisetsu/pdf/gakko_chosakuken.pdf  (Japanese 
only) 
 
Report by the Secretariat (WT/TPR/S/351)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures affecting production and trade  
3.3.10 Intellectual property rights  
3.3.10.6 Geographical Indications  
Page 81, Paragraph 3.191  
The report refers to Japan 's Act on Protection of the Names of Specific Agricultural, Forestry and 
Fishery Products and Foodstuffs.  
 
Question 17  
Could Japan provide an update on the provision of objection procedures for geographical 
indications, including any objection procedures available to third parties in relation to geographical 
indications proposed to be registered an d/or protected in Japan pursuant to an international 
agreement to which Japan is a party?  
 
RESPONSE  
Any person may submit a written opposition for both GI products proposed to be registered under 
the domestic law and GI products proposed to be designated t hrough international agreements for 
three months from the date of the publication. The opposition procedures for the GI products to be WT/TPR/M/351/Add.1  
 
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  designated  pursuant to an international agreement is the same as those for the GI products to be 
registered.   
For your re ference, information is availabl e for the below link (Japanese): 
http://www.maff.go.jp/j/shokusan/gi_act/outline/index.html . 
 
Report by the Secretariat (WT/TPR/S/351)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.10 Intellectual property rights  
Page 81, Paragraph 3.193  
The report states that, the GI name must be linked with the location where the product is 
produced and a given quality, reputation or other characteristic of the product must be essentially 
attrib utable to its geographical origin. It also requires that a product be continuously produced 
throughout a certain period of time in a particular region.  
 
Question 18  
What does Japan mean by "that a product be continuously produced throughout a certain perio d of 
time in a particular region"? What are the certain "periods of time"? Do they differ by product/GI?  
 
RESPONSE  
A geographical indication is a protection system for products that have a specific geographical 
origin and possess qualities, reputation or o ther characteristics that are due to that origin. The 
qualities, characteristics or reputation of the product should be essentially attributed to the place 
of origin. Since the qualities, characteristics or reputation arise from the geographical place of 
production, there must be a clear link between the product and its original place of production.  
We recognize that in order to identify the link between the characteristics of the product and the 
production area, this link must be maintained for a certain p eriod of time. Thus, approximately 
25 years of production record is suggested as necessary element to show that the product has a 
causal link to the geographical area.  
 
Report by the Secretariat (WT/TPR/S/351)  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.10 Intellectual property rights  
3.3.10.8 Enforcement  
Page 83, Paragraph 3.203.  
The report notes "the number of IPR infringement cases handled by domestic courts has remained 
on an upward trend since 2009. Over 6 00 cases were dealt with by enforcement institutions in 
2015."  
 
Question 19  
Could Japan provide a breakdown of the 600 cases into broad IP categories?  
 
RESPONSE  
The breakdown of cleared cases in 2015 is as follows:  
- a violation of the Trademark Act: 316 c ases 
 (Accessories and purses account for approximately half of confiscated goods.)  
- a violation of the Copyright Act: 239 cases  
 (CDs and DVDs account for about 90% of confiscated goods.)  
- others: 51 cases  
 "others" includes violations of the Unfair Com petition Prevention Act and other violations.  
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.1 Legal and institutional framework  
Page 91, Paragraph 4.9  
The report states tha t, Japan's agricultural policy is set out in the Food, Agriculture and Rural 
Areas Basic Plan, which is reviewed roughly every five years. The current Plan, adopted in March 
2015, sets out the objectives of doubling incomes in agriculture and rural areas o ver the next ten 
years by increasing domestic and export demand, improving value chains, reducing costs, WT/TPR/M/351/Add.1  
 
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  promoting structural reform, and improving productivity. Agricultural pol icy continues to 
emphasize self -sufficiency, and the new Basic Plan sets self -sufficiency targets for FY2025 of 45% 
on a calorie basis and 73% on a production value basis, as well as a self -sufficiency target for 
feeds of 40% for FY2025.  
 
Question 20  
How successful have the reforms aimed at lessening the influence of the Central Org anisation of 
Japan Agriculture Cooperatives (JA -Zenchu) been in allowing local farming cooperatives to make 
more market -oriented decisions in response to increased exposure to international markets and 
pricing, and in making Japanese agriculture less depen dent on direct subsidies?  
 
RESPONSE  
The main purpose of the recent reform of agricultural cooperatives in Japan is to encourage them 
to devote themselves to enhancing competence to sell agricultural products, and increasing 
member farmers ' income, which ar e the essential roles of agricultural cooperatives. This reform 
process is ongoing, and the Government of Japan will monitor the state of progress.  
 
Question 21  
Noting the aim to increase self -sufficiency rates, would Japan consider exposing agriculture 
industries/commodities to market forces to provide incentives for innovation and production 
efficiencies?  
 
RESPONSE  
The Food, Agriculture and Rural Areas Basic Plan, adopted in March 2015, sets food self -sufficiency 
ratio targets for FY2025 at 45% for a calo rie supply basis and 73% on a production value basis. To 
achieve these targets, it is important for farmers to expand production in response to various 
demands towards diversifying dietary patterns. In this context, the Plan encourages innovation, 
with a v iew to enabling farmers and related industries to be more responsive to consumer needs. 
The Plan also promotes efficient and stable farm management, through farmland consolidation to 
core farmers, and other related measures.  
 
Report by the Secretariat (WT/ TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.3 Domestic support  
4.1.2.3.1 General support programmes  
Page 91, Paragraph 4.10  
The report states that, Japan has many laws affecting farming generally and s pecific types of 
farming. Some of the principal laws include: (3) the Agricultural Land Act (last amended in 2015), 
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.  
 
Question 22  
What impact has the local agricultural committee approval process had on Japan 's efforts to 
consolidate farmland? Who is on the local agricultural committee?  
 
RESPONSE  
The Farmland Act re gulates farmland trading, that farmland cannot be sold or lea sed without an 
approval of the agricultural committee. Farmers have to meet requirements such as making full 
use of farmland, and minimum farmland acres. This secures farmland use by famers, whil e 
promoting consolidation of farmland.  
The agricultural committee is an administrative committee organized in each municipality.  
Mayors appoint a member of the agricultural committee, and the majority should be farmers 
certified by prefectural governor  
 WT/TPR/M/351/Add.1  
 
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  Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.1 Legal and institutional framework  
Page 91, Paragraph 4.11  
The report states that agricultural policy in Japan uses a comprehens ive set of policy measures 
which result in a relatively high level of protection and support to producers for most products.  
 
Question 23  
Can Japan provide more detail on how its rice policy has been changed under this revision of the 
Basic Law for Food, A griculture and Rural Areas in 2015, and to what extent is support for rice 
producers lessened, in order to reduce direct subsidies which harm imports from other WTO 
member countries?  
 
RESPONSE  
The Basic Law for Food, Agriculture and Rural Areas was not rev ised in 2015. However, the 
Document WT/TPR/G/351, paragraph 4.30, refers to a plan set out in December 2013, to phase 
out production quotas for rice by 2018, by way of providing detailed information, inter alia, on rice 
supply and demand, so that farmers c an adjust rice production without relying on government 
quota allocation, with the objective of giving farmers greater production flexibility. This is also 
mentioned in the Basic Plan for Food, Agriculture and Rural Areas revised in 2015.  
The direct paymen t for rice was reduced by half from JPY 15 000 per 0.1 ha to JPY 7 500 per 
0.1 ha in 2014, and will eventually be abolished from production in 2018 (see paragraph 4.30) . 
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Ag riculture  
4.1.2 Agricultural policies  
4.1.2.2 Trade Policies  
Page 92, Paragraph 4.15  
The report states that Japan applied Special Safeguards to out -of-quota imports on a number of 
occasions over 2014 -15 – mainly grains and dairy products.  
 
Question 24  
Given Japan 's WTO commitments have now been in force for over 20 years and Japanese industry 
has had considerable time to adjust to these tariff arrangements, is Japan considering to 
discontinue its use of Special Safeguards?  
 
RESPONSE  
Special Safeguard was in troduced as compensation for tariffication as a result of  the 
UR negotiation, and Japan apply and will apply it in accordance with the Agreement on Agriculture . 
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.3 Domestic support  
4.1.2.3.1 General support programmes  
Page 93, Paragraph 4.24  
The report states that, legislation to establish a regional government -supported institution in each 
prefecture to promote farmland consolida tion was promulgated in December 2013 and entered 
into force in March 2014. Under the legislation, the prefectural institutions rent farmland, improve 
infrastructure (if necessary), and lease the land to core farmers.  
 
Question 25  
To what extent has the l and consolidation bank policy succeeded, and has the average farm size 
increased since the policy began? Have Japanese farms become more efficient and productive and 
will subsidies to farmers be reduced as a result?  
 WT/TPR/M/351/Add.1  
 
- 13 - 
 
  RESPONSE  
With regard to the target of 8 0% of farmland consolidation to business farmers, the share 
increased from 50.2% (2015) to 52.3% (2016) since the Public Corporations for Farmland 
Consolidation to Core Farmers through renting and subleasing was organized. Additionally, the 
average farmlan d size also increased from 2.54ha (2015) to 2.74ha (2016). As a result, farmers in 
Japan become more efficient and productive.  
As agricultural subsidies are provided in response to each year 's necessity, it is not possible to 
predict whether the amount wou ld be reduced or not . 
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.3 Domestic support  
4.1.2.3.2 Rice  
Page 94, Paragraph 4.30  
The report states that, Japan adopted a plan s et out in December 2013 to phase out production 
quotas for rice by 2018 by way of providing detailed information, inter alia, on rice supply and 
demand so that farmers can adjust rice production without relying on government quota 
allocation, with the obje ctive of giving farmers greater production flexibility. As part of reform, the 
direct payments for rice programme was halved (from JPY 15,000 per 0.1 ha to JPY 7,500 per 
0.1 ha) on 1 April 2014 and is to be abolished in the 2018 crop year. Australia suppor ts Japan 's 
effort to remove direct payment to encourage independent decision -making by farmers on 
production.  
 
Question 26  
Is the abolition of direct payments to rice farmers in the 2018 crop year still on track? Is there a 
plan to abolish direct payments to farmers of other agricultural commodities over time, if so, can 
you elaborate on the details?  
 
RESPONSE  
The direct payment for rice will eventually be abolished from in 2018.  (see paragraph 4.30)  At the 
moment, the Government of Japan does not plan to a bolish direct payments regarding other 
commodities.  
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.1 Financial services  
Page 109, Paragraph 4.87  
The report states that the licensing standards have been clar ified and complemented by the 
amendment so as to require that: (1) the amount of assets be at least the equivalent to the stated 
capital of the foreign bank branch (¥2 billion) and sufficient for the sound and efficient 
performance of the business proposed  in the licence application; (2) the foreign bank records a 
profit in at least one of the three years following the commencement of its business; (3) its officers 
and employees have sufficient knowledge and experience; and (4) the methods of business of th e 
foreign bank branch are appropriate for the protection of depositors and the maintenance of the 
stability of the financial system. Furthermore, the supervisory guidelines of the FSA have been 
complemented with new rules regarding fund transfers within th e foreign bank group, including 
transfers to and from its head offices and branch accounts, the foreign branches' assets in Japan, 
the deposit types provided by foreign bank branches and the way for the foreign bank branches to 
treat deposits in Japan.  
 
Question 27  
Could Japan explain how these revised licencing standards for foreign banks compare to those for 
Japanese banks?  
 
RESPONSE  
(1)(2)(3) The licensing standards for domestic banks are prescribed in the Banking Act (Article 
4(2)(ii)) and the Ordinance  for Enforcement of the Banking Act (Article 1 -8(3)), that are equivalent 
to the ones for foreign banks. Moreover, the shareholders of domestic banks are subject to strict WT/TPR/M/351/Add.1  
 
- 14 - 
 
  screening procedures prescribed in the Comprehensive Guidelines for Supervision of M ajor Banks, 
etc. 
(4) FSA reviews a bank 's application for a license from prudential viewpoints concerning accepting 
of retail deposits through a branch, and fund management, including fund transfer to head office. 
FSA also requires an explanation to deposi tors that the deposits held by foreign bank branches are 
not protected under the deposit insurance system in Japan . 
 
Question 28  
Revised licencing standards are more stringent for foreign banks than for domestic banks. Could 
Japan explain the rationale for  this? 
 
RESPONSE  
A foreign bank is permitted to accept retail and wholesale deposits in the Japanese market through 
both subsidiaries and branches. The scope of approved business does not depend on whether the 
entities used are branches or subsidiaries. Ho wever, foreign bank branches were not subject to the 
regulations related to the stated capital, and they were not subject to application of the Act on 
Special Measures Concerning Proceedings of Financial Institutions, etc. (Act on Special Measures 
for Reor ganization) before the licensing standards were revised.  
In order to protect depositors in Japan, and to ensure the stability of the financial system, the 
above status needed to be reviewed, and the standards have been revised. In reviewing the 
regulations , consideration was given to the need for international cooperation in any cross -border 
recovery and resolution planning of financial institutions, and to not excessively impede the 
business models of foreign bank branches.  
 
Report by the Secretariat (WT/T PR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.1 Financial services  
Page 109, Paragraph 4.89  
The report states that the amendments have also imposed new information obligations on foreign 
banks towards their Japanese clients. Foreign bank  branches must indicate to depositors that the 
deposit insurance system in Japan does not cover their deposits. In addition, they must explain to 
their customers that a foreign bank branch's solvency means the solvency of the entire foreign 
bank entity, th at the relevant supervisory authorities of the foreign bank branch shall bear primary 
responsibility for supervision of the solvency and that, even if a refund may be paid through the 
insolvency procedure in the home country in case of failure of the forei gn bank, the possibility 
exists that the deposits may not be refunded quickly. Finally the foreign bank branch must indicate 
the details of the coverage by the deposit insurance system of the home country if deposits in 
Japan are covered by this system.  
 
Question 29  
Could Japan explain why its deposit insurance system does not cover the deposits taken by 
branches of foreign banks?  
 
RESPONSE  
The deposit insurance system does not cover deposits taken by branches of foreign banks. 
Whether or not foreign financ ial institutions fails, in which branches established in Japan are 
included, basically rest upon the conditions of their headquarters located abroad where the 
Japanese authorities are out of their jurisdiction. The deposit insurance system is designed to o nly 
cover financial institutions with their headquarters located in Japan.  
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.2 Telecommunications  
Para 4.94 Box 4.2  
Page 110 -11 
The report includes economic da ta such as penetration rates, main actors and establishment of 
new companies/mergers but not more granular indicators of competition.  
 WT/TPR/M/351/Add.1  
 
- 15 - 
 
  Question 30  
What evidence is there that consumers are benefitting from a competitive telecommunications 
industry, e.g. in  terms of lower prices, new services etc.?  
 
RESPONSE  
Lower prices for the same services, and wider varieties of services for consumers could be clear 
evidences  
The report includes the names and market shares of the leading companies for fixed telecom 
services. NTT East and NTT West are stated as having a combined market share for fixed telecom 
services (53.8%).  
 
Question 31  
Why are NTT East and NTT West market shares combined? Are they supposed to be competitors or 
not? 
 
RESPONSE  
Both NTT East and NTT West belong to the same group company, whose parent is NTT Holding 
Company.  
The report states NTT (East and West) hold 53.8% of the fixed lines and 43.3% of the mobile 
market.  
 
Question 32  
What is Japan's view on the high enduring market shares of NTT in both t he fixed and mobile 
markets? Is NTT able to leverage its power in either market through bundling, or is it prohibited 
from doing so?  
 
RESPONSE  
To promote fair competition in the telecommunication market, the Government of Japan not only 
introduces asymmetr ic regulation but imposes special regulations on NTT East, NTT West and NTT 
DOCOMO. As a result, any discount service, that combines fixed communication services by NTT 
East and NTT West, and mobile communication services by NTT DOCOMO, is prohibited.  
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.2 Telecommunications  
Para 4.94 Box 4.2  
Page 111  
The report states that state ownership of NTT is 33.3%.  
 
Question 33  
Are there plans to sell down this Government  holding?  
 
RESPONSE  
Selling any excess amount of government ownership is decided on a case -by-case basis, during 
the process of compiling the national government 's budgets every fiscal year. There are no current 
plans to sell down government holding, beca use there is no excess amount of government 
ownership as of now  
 
Question 34  
How does the Japanese Government ensure NTT is not favoured in regulation?  
The report suggests a restriction on foreign ownership in NTT.  
 
RESPONSE  
Although there is a state -owned  share in NTT, there is no regulation favoring NTT.  
 
Question 35  
Are there foreign ownership restrictions on NTT and, if so, is any change proposed? Are there 
plans to reduce foreign ownership control on NTT?  
 WT/TPR/M/351/Add.1  
 
- 16 - 
 
  RESPONSE  
In the Law on NTT, the NTT holding c ompany is regulated to restrict foreign ownership to less than 
one-third of all voting shares. At present, there is no plan to reduce the ratio of voting rights over 
NTT. 
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.2 Telecommunications  
Para 4.94 Box 4.2  
Page 111  
The report states that the number of complaints filed or resolutions effected of interconnection 
disputes among operators is zero since 2015.  
 
Question 36  
To what does Japan attribute the low nu mber (zero) of complaints?  
 
RESPONSE  
About complaints, in December 2016, Telecommunication Dispute Resolution Committee received 
a consultation from the Minister of MIC to reopen the order of consultation on the interconnection 
between telecommunication fa cilities. The Committee submitted a report in January 2017, and the 
dispute was resolved. It indicates that the system works effectively  
The report describes Japan 's existing services universal service arrangements with an apparent 
focus on legacy telephon y services.  
 
Question 37  
What is Japan's position on universal access to high -speed broadband? Has it offered ass istance to 
deliver such access?  
 
RESPONSE  
The Government of Japan does not regard high -speed broadband services as universal services. 
Based on  policy objectives, such as the "Declaration on the Creation of the World 's Most Advanced 
IT Nation", the Government of Japan supports, by state subsidy for local governments, 
disadvantaged areas in which basic high -speed broadband services have not been d eveloped by 
private enterprises  
The report does not discuss Japan 's strategic view of developments in the broadband space.  
 
Question 38  
What does Japan see as the relative long -term roles between fixed and mobile broadband and how 
they will be provided int o the longer term?  
 
RESPONSE  
Between fixed and mobile broadband, there was once a major difference with respect to portability 
and line speed. In Japan, however, because of the emergence of high -speed mobile 
communication and familiar rate plans, an enviro nment is developing where consumers can freely 
choose fixed and/or mobile broad services, depending on their needs . 
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.2 Telecommunications  
Page 112, para 4.96  
The report states that the Telecom Business Act was amended in May 2015. The report also states 
that under the new regime, MIC Ordinance No. 31 of 29 March 2016 defines the interconnection 
obligations and the method and procedures for interconnection fees t o be paid by MVNOs.  
 
Question 39  
What results have the reforms to the interconnection regime delivered?  
 
RESPONSE  
MIC created rules for interconnection fees and conditions of mobile telecommunication operators, 
and made the interconnection between mobile t elecom operators and MVNOs fair and transparent . WT/TPR/M/351/Add.1  
 
- 17 - 
 
  Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.2 Telecommunications  
Page 112, para 4.98  
The report outlines SIM locking and the agreement by all major operat ors to implement free SIM 
unlocking after six months for all mobile handsets bought after 1 May 2015.  
 
Question 40  
Have SIM unlocking requirements affected consumer access to handsets on preferential terms 
(e.g. as part of a subsidized lock -in contract)?  
 
RESPONSE  
The Government of Japan is not aware of whether SIM unlocking requirements have affected 
consumer access to handsets on preferential terms. The total number of SIM unlocking was 
246,796 in 2016 (through the year), and it is on the increase . 
 
Repor t by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.2 Telecommunications  
Page 112, para 4.99  
The report states that there is ongoing discussions with the industry to shorten the standard 
duration of mobile contracts (two years).  
 
Question 41  
How do Japanese carriers justify the two -year contracts?  
 
RESPONSE  
Though the Government of Japan does not regulate the terms and conditions of contracts, 
generally, two -year contracts oblige consumers to pay a penalty for cancel lation of contract in the 
middle of the duration, on the one hand, and provide a benefit by discounting rates on the other . 
 
Question 42  
What is the main reason for Japan wanting to reduce the contract period and will it be seen as 
reducing the scope for c ompetition or consumer choice?  
 
RESPONSE  
Regarding the duration of mobile contracts, in addition to traditional type of contracts, mobile 
telecom operators started to provide  new types of contracts that are not binding for a long period 
of time. It has res ulted in broadening the scope of consumer choice.  
 
Report by the Secretariat (WT/TPR/S/351)  
4 TRADE POLICIES IN SELECTED SECTORS  
4.6 Services  
4.6.3 Broadcasting Services  
4.6.3.3 Radio Services  
Page 120, Paragraph 4.127  
The report states that, in response to worsening business conditions for radio broadcasters, the 
MIC amended its regulation in 2011 in order to relax cross -ownership restrictions on radio 
broadcasting approval holders. As a consequence, one entity can now control up to four license 
holders.  
 
Question 43  
Has this relaxation in cross -ownership restrictions extended to foreign -based entities holding 
radio-broadcasting licenses?  
 
RESPONSE  
While the relaxation in ownership restrictions on radio broadcasters (terrestrial basic broadcasters) 
in 2011  shall apply all the radio broadcasters (terrestrial basic broadcasters), there is no 
amendment of the foreign ownership restrictions, or the restrictions on the ratio of foreign 
nationals as board members for a terrestrial basic broadcaster  WT/TPR/M/351/Add.1  
 
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  REPORT BY JAPA N (WT/TPR/G/351)  
 
Report by Japan (WT/TRP/G/351)  
2 TRADE AND INVESTMENT REGIME  
2.4 Other Regional/Bilateral Arrangements  
2.4.1 Asia -Pacific Economic Cooperation (APEC)  
Page 8, Paragraph 2.18  
The report states that Japan adopted the APEC Services Competitiv eness Roadmap (ACSR) in 2016 
to help accelerate regional economic integration, as well as leading a number of studies and 
initiatives aimed at economic integration in APEC.  
 
Question 44  
How does Japan foresee the studies listed as resulting in closer econ omic cooperation in the APEC 
region?  
 
RESPONSE  
As the APEC Services Competitiveness Roadmap (ASCR), which question 44 refers to, was adopted 
by the 2016 APEC Leaders ' Meeting. It was not a document formulated by Japan. In this light, 
"studies" that the que stion 44 mentions do not have immediate relation to implementation of the 
ASCR.  
Studies had been conducted to identify economic and technical challenges against promotion of 
regional economic integration, mainly from the view point of connectivity, and mad e policy 
recommendations toward a way forward, and the result of the studies would contribute not only to 
policy making but also to academic researches.  
 
Report by Japan (WT/TRP/G/351)  
2 TRADE AND INVESTMENT REGIME  
2.4 Other Regional/Bilateral Arrangements  
2.4.3 Japan's Bilateral Activities outside of FTAs: The United States  
Page 9, Paragraph 2.22  
The report outlines the range of important topics discussed during the Seventh Director General -
Level Meeting of the US -Japan Policy Cooperation Dialogue on the I nternet Economy. Such topics 
discussed at a policy -level include: Internet and Information and Communication Technologies 
(ICT), Internet of Things and Smart Cities, International Coordination and the Free Flow of 
Information, Addressing Global Challenges through ICT, Use of Personal Data and Protection of 
Privacy, Cybersecurity and 5G.  
 
Question 45  
How, if at all, does Japan see these policy discussions as helping shape domestic and trade policy 
approaches to E -Commerce and new services?  
 
RESPONSE  
These po licy discussions, by sharing the latest trends in technologies and policies in the digital 
economy between Japan and the U.S., affect the formulation of Japanese domestic and trade 
policy approaches for sharing the benefit of the Digital Economy, not only domestically but also 
globally. Specifically, through these policy discussions, we intend to ensure international 
cooperation and the free flow of information, as well as to formulate domestic policies or global 
policy frameworks for promoting new informat ion and communications technologies and services, 
such as e -commerce, Internet of Things (IoT), and 5G mobile telecommunications. Therefore, 
there policy discussions contribute to formulation of policy approaches in Japan.  
 
Report by Japan (WT/TRP/G/351)  
2 TRADE AND INVESTMENT REGIME  
2.5 Investment Policy  
2.5.2 Investment Agreements  
Page 11, Paragraph 2.38  
The report states that, "Japan has actively promoted the conclusion of investment agreements as 
they create stable, equitable, favourable and transparen t conditions for greater investment 
through the removal of barriers to investment and provision of investor protections."  
 WT/TPR/M/351/Add.1  
 
- 19 - 
 
  Question 46  
What are Japan 's 'Made with Japan public –private partnerships ' global ambitions in terms of 
developing special economic  zones such as the Thilawa special economic zone in Myanmar which 
49% is owned by the Japan International Cooperation Agency (JICA) and Mitsubishi Corporation 
and houses approximately 33 Japanese companies including Yakult?  
 
RESPONSE  
The Special Economic Zone (SEZ)  is a comprehensive development project, which includes 
lifecycle infrastructure, industrial infrastructure, and transportation infrastructure, so that the 
consistency with the development plan, environmental considerations, and the development o f 
human resources are crucial. From the viewpoint of promoting quality infrastructure investment, a 
widely shared concept which Japan strongly supports, satisfying these requirements at a high 
standard, by cooperating with public and the private sector, is  important.  
For example, Thilawa Special Economic Zone in Myanmar has been developed by public and 
private sectors from both countries, including JICA. The Government of Japan supported the 
development of peripheral infrastructure as well, such as electri city and roads. Through Japan 's 
technical cooperation, experts supported the formulation of the development master plan, the 
development of the legal system related to the SEZ and capacity building for the steering 
committee, etc. The Government of Japan h as been contributing to the development of a quality 
SEZ and its investment environment; therefore, 79 companies from 15 countries have signed their 
tenancy agreements in Zone A, which has already been developed. The development of Zone B 
started in Februa ry 2017.  
SEZ projects contribute to the improvement of living standards, job creation, and economic growth 
of partner countries. The Government of Japan is willing to strengthen this support . 
 
Question 47  
In terms of food and agriculture, are there any sp ecific raw materials and technical expertise that 
Japan foresees an increased demand for to meet food processing; manufacturing; vertical 
integration requirements?  
 
RESPONSE  
Regarding the matter of inquiries, private enterprises make judgments based on th eir 
management policy, and the Government of Japan is not in a position to comment.  
 
Report by Japan (WT/TRP/G/351)  
3 TRADE AND DEVELOPMENT  
3.1 Aid for Trade  
Tokyo International Conference on African Development  
Page 12, Paragraph 3.5  
The report states th at following the Sixth Tokyo International Conference on African Development, 
"Japan will launch the "Japan -Africa Public -Private Economic For um" in order to support 
private -sector companies in establishing businesses in Africa."  
 
Question 48  
What will be Japans ' agricultural focus in Africa and which commodities will have their production 
systems prioritised?  
 
RESPONSE  
Japan 's agricultural focus in Africa is to enhance profitability and productivity, by promoting 
market -oriented agriculture and developing  the Food Value Chain, through such measures as 
formulating vision, developing human resources, and strengthening public -private partnership.  
 
Question 49  
If rice is the commodity to be prioritised, will rice be cultivated for animal feed or food purposes?  
Will production be primarily to supply Japan 's requirements and/or Africa 's requirements or to 
supply the global market?  
 
RESPONSE  
Rice is one of the prioritized commodities in the context of food security. Japan announced that it 
would transfer techniqu es of rice cultivation to 60 thousand farmers and 2.5 thousand extension 
workers, under the Coalition for African Rice Development (CARD) initiative. This measure is 
intended to support the food cultivation, in order to help Africa 's self-sufficiency.  WT/TPR/M/351/Add.1  
 
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  Repo rt by Japan (WT/TRP/G/351)  
4. JAPAN'S DOMESTIC POLITICS  
4.1 Abenomics  
Page 14, Paragraph 4.1  
The report states that, under the 'three arrows ' Japan is working towards building "a society in 
which all citizens participate, including women and men, older per sons and the young."  
 
Question 50  
To what extent has Prime Minister Abe 's third arrow of Abenomics priority to facilitate gender 
equality in the workforce and improve Japanese women 's active role in Japanese employment 
contributed overall to Japan 's report ed improvements in employment?  
 
RESPONSE  
Overall, the third arrow by Prime Minister Abe facilitates gender equality in the labor market and 
improves by female employment. The number of female work ers has increased more than 
1.5 million, and the number of f emale board members at listed companies has doubled in four 
years. In addition, the employment rate of women in the child raising period (aged 25 to 49) has 
increased from 67.8% in 2012 to 72.7% in 2016, and the proportion of women in managerial 
positions (private companies with over 100 employees) has increased from 6.9% in 2012 to 8.7% 
in 2015. Furthermore, the rate of women continuing to work after having their first babies has 
increased from 38.0% in 2011 to 53.1% in 2016.  
Question 51  
Does Japan have po licies in place to encourage young Japanese to acquire the new wave of 
transformative and digital technological skills that will be necessary to participate in agricultural 
and food production practices in the future (including the 4th industrial revolutio n)?  
 
RESPONSE  
The Government of Japan has policies of the R&D and on -site demonstration to promote the 
application of leading -edge technologies such as ICT and robot technology by farmers  
 
Report by Japan (WT/TPR/G/351)  
4. JAPAN'S DOMESTIC POLITICS  
4.2 In tellectual Property Rights  
Page 14, Para 4.6  
In the report, there is a reference in para 4.6 to the 'Intellectual Property Strategic Program 2016 ' 
(see: http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf ).  
We understand that progr am included initiatives and proposals to:  
 undertake a 'detailed study of the effects and influences of flexible rights limitations '; 
 'promote discussion about introducing an extended collective licensing system '; and  
 discuss improvement of the Compulsory Licensing System for orphaned works.  
 
Question 52  
Can Japan please provide an update on the progress of these initiatives and proposals?  
 
RESPONSE  
Since 2015, the Government of Japan has been intensively examining the effects and influences of 
flexible rig hts limitations in the working team established in the Copyright Subcommittee of the 
Council for Cultural Affairs. The Subcommittee plans to compile the report of the working team by 
the end of FY2017.  
Regarding an extended collective licensing system, the  Government of Japan conducted a survey 
on the legal systems and pra ctices in other countries in FY 2015. Based on this survey, the 
Government of Japan has been examining issues in introducing this system to our country.  
As for the Compulsory Licensing Syst em for orphaned works, from October 2016, a committee 
composed of right holders is conducting a pilot project, in which the committee, upon the request 
from users, searches for rights holders and applies for permission to use works to the Agency for 
Cultur al Affairs. With a view to facilitate the use of the System, it is planned that the payment 
method of compensation for the right holder will be revised on the occasion of the next 
amendment of the Copyright Law.  
 WT/TPR/M/351/Add.1  
 
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  Report by Japan (WT/TRP/G/351)  
4. JAPAN'S D OMESTIC POLITICS  
4.3 Financial Reform  
Page 15, Paragraph 4.10  
The report states that, with regard to venture funds, investment is possible by persons with 
practical experience, such as officers of listed companies and persons who have launched a new 
busine ss. 
 
Question 53  
What assessment procedures are used to determine the applicability of an individual 's practical 
experience and is this method applied to other forms of investment?  
 
RESPONSE  
(Individuals ') practical experiences are assessed in light of th e following criteria, which is only 
applicable to Specially Permitted Businesses for Qualified Institutional Investors, as of private 
placement or becoming a counterparty of such.  
Individuals with practical experiences are:  
1. A corporate officer and a forme r corporate officer of listed companies or corporations (with net 
assets or capitalization totaling 50 million yen or more) that submit securities reports;  
 
2. A corporate officer or a former corporate officer of corporations that serves as an operating 
partn ers, silent partners, limited liability partnerships or foreign partnerships;  
 
3. A former operating partner (with investment -oriented financial assets totaling 100 million yen 
or more) of partnerships, silent partnerships, limited liability partnerships, or foreign 
partnerships, etc.;  
4. A person with a firsthand experience in the establishment of companies, capital increases, 
issuance of share options, launch of new businesses, development of management strategies, 
corporate finances, investment services, manag ement of general shareholders meetings or 
board of directors meetings, business acquisitions, share listings, etc., for a specified length of 
time as a corporate officer, employee, consultant, etc., and thus have specialized knowledge 
and skills in relevan tfield; An individual, a corporation, etc., included in the list of top 10 or 50 
shareholders of listed companies that submit securities registration statements or securities 
reports; and  
 
5. An accredited organization and expert that support business innovat ion and other 
efforts(chambers of commerce, chambers of commerce and industry, and national federation 
of small business associations, financial institutes, and professionals  )  
 
A company whose shares are held by the investors specified above as those per mitted to invest.  
 
Report by Japan (WT/TRP/G/351)  
4. JAPAN'S DOMESTIC POLITICS  
4.4 Agricultural Reform  
Page 16, Paragraph 4.14  
The report states that the Japanese government established "the Plan for Empowering Export on 
Agriculture, Forestry and Fisheries " in May 2016, in order to promote Japanese agricultural, 
forestry and fishery products, and food in the global market.  
 
Question 54  
In terms of climate change and Japan's capacity to continue producing and promoting the export 
of Japanese foods, forestry and fisheries products, does Japan predict some commodities will be 
affected by climate change in terms of determining where a commodity can be grown in Japan? If 
so which key commodities and is yield and/or quality to be the dominant risk factor?  
 
RESPONS E 
The Central Environment Council released Assessment Report on Climate Change Impact in Japan.  
Main assessments are as follows:  
-Paddy Field Rice: Declining quality, such as decrease in the rate of first -class rice nation -wide.  
-Fruit trees: Declining ap ples quality, such as poor coloring.  
-Plant Pests: Damage will increase due to the increasing occurrence of pests and diseases.  WT/TPR/M/351/Add.1  
 
- 22 - 
 
  Based on the assessments, the MAFF promotes the measures including, but not limited to, the 
following:  
-Paddy Field Rice:  Develo pment of high -temperature resistance varieties.  
-Fruit trees:  Replanting for introducing superior -colored varieties of apples.  
-Plant Pests: Promotes pests and diseases forecasting program in order to observe the situation of 
expansion of pests and diseas e appropriately.  
 
Question 55  
Could Japan please provide additional information regarding 'the Plan for Empowering Export on 
Agriculture, Forestry and Fisheries '?  
 
RESPONSE  
The new plan was established to support agricultural, forestry, fishery and food b usinesses by way 
of several measures, for example;  
-consolidating overseas market information and deliver through JETRO (the Japan External Trade 
Organization)  
-enhance the consulting and advice systems of JETRO and MAFF  
-implement effective promotion even ts in collaboration with chefs and overseas Japanese 
restaurants  
-improve the domestic export -related procedures, such as the issuance procedures for various 
certificates  
-establish a system to guarantee the quality and special features of Japanese product s to overseas 
consumers and businesses.  
In addition to the plan, country/region -specific and products specific export strategies were 
provided for private businesses to support their exports.  
 
Question 56  
Could Japan please provide data on the Japanese agr icultural products and food that has been 
promoted in the global market under this programme?  
 
RESPONSE  
The total value of exports of Agricultural, Forestry and Fishery Products and Foods in 2016 was 
750.3 billion yen, which increased by 0.7% compared to t he value in 2015 (745.1 billion yen).  
 
Report by Japan (WT/TPR/G/351)  
4. JAPAN'S DOMESTIC POLITICS  
4.4 Agricultural Reform  
Page 16, paragraph 4.15  
Question 57  
Could Japan provide more information on what further reform(s) it is committed to undertaking to 
enhance the competitiveness of agriculture?  
 
RESPONSE  
The Government of Japan revised "the Basic Plan for Food, Agriculture and Rural Areas" in March 
2015 and "Japan Revitalization Strategy" in June 2016. Please see the links below for more 
information.  
(1) the Basic Plan for Food, Agriculture and Rural Areas  
http://www.maff.go.jp/e/policies/law_plan/attach/pdf/index -2.pdf. 
(2) Abenomics is progressing  
http://www.japan.go.jp/abenomics/index.html . 
 
REVISED ANSWER FROM JAPAN  - AUSTRALIA  
Q36. To what does Jap an attribute the low number (zero) of complaints?  
 
RESPONSE  
About complaints, in December 2016, Telecommunication Dispute Resolution Committee received 
a consultation from the Minister of MIC to reopen the order of consultation on the interconnection 
betwe en telecommunication facilities. The Committee submitted a report in January 2017, and the 
dispute was resolved. It indicates that the system works effectively.  
 
 WT/TPR/M/351/Add.1  
 
- 23 - 
 
  2. SWITZERLAND  
Report by the Secretariat (WT/TPR/S/351)  
 
2.1 General Framework  
 
Para 2.2:  It is mentioned in 2.2 that overall coordination of trade policies rests with the Cabinet 
while responsibility for trade -related legislation rests with the Cabinet and Diet. Does the National 
Diet as legislative body keep decisional power in all areas of trad e-related legislation or is the 
power delegated to the Cabinet in certain circumstances?  
 
RESPONSE  
Article 41 of the Constitution of Japan stipulates  "[t]he Diet shall be the highest organ of state 
power, and shall be the sole law -making organ of the stat e." Article 73 enumerates the function of 
the Cabinet, which includes "[e]nact cabinet orders in order to execute the provisions of this 
Constitution and of the law." Thus, while the Diet, as legislation body, has the authority of 
legislation, the Cabinet,  as administrative body, has the power to enact and execute administrative 
orders to the extent that relevant laws permit  
 
2.4 Investment Regime  
 
Para 2.21:  In paragraph 2.21 of the report, regarding the Act on National Strategic Special Zones 
of 2013, it is stated that "precise details for each zone are to be decided by consensus between 
the national government, local authorities, and the private sector". What would be the general 
procedure to be followed by a foreign investor in order to be able to invest  under the Act on 
National Strategic Special Zones of 2013? Is it a one -stop shopping procedure ?  
 
RESPONSE  
Although there are no investment procedures unique to the National Strategic Special Zones, some 
support services are provided for foreign investors . Firstly, the Tokyo One -Stop Business 
Establishment Center was established to promote foreign -owned and domestic venture 
corporations; the Center offers comprehensive support for procedures related to corporate 
foundation. Secondly, the current requiremen ts for the Investor/Business Manager visa category 
(namely, the need to either employ at least two full -time employees, or invest a minimum amount 
of five million yen) can be relaxed in the Zones, provided that an agreement has been reached 
between the nat ional government, local authorities and the private sector.  
3.1.1 Customs procedures and requirements  
 
Box 3.1  
 
a. Does the Japanese AEO system differentiate between AEO Security and AEO Customs as the 
EU does or are both components evaluated in one single st atus?  
 
RESPONSE  
Japanese AEOs are required to ensure both components, i.e. cargo security and compliance, in one 
single status.  
 
b. The number of 600 certified AEO seems quite low. Are rather big companies certified? Have 
importing or exporting SMEs also been  certified as AEO?  
 
RESPONSE  
SMEs account for over 40% of all certified AEOs.  
 
c. Do figures show the percentage of the total imports respectively exports made by Japanese 
AEOs?  
 
RESPONSE  
In the year 2015, importation by AEOs, in value terms, accounted for approximately 15%  of the 
total imports, and that of exportation accounted for over 50% of the total exports.  
 WT/TPR/M/351/Add.1  
 
- 24 - 
 
  d. The release time for border clearance by AEOs has been significantly reduced. Could the 
control rate of imports and exports by AEOs also be reduce d following the certification 
process? Do figures exit?  
 
RESPONSE  
Japan does not disclose such figures.  
 
e. What is approximatively the physical control rate of imports and exports in Japan?  
 
RESPONSE  
Such figure is not available.  
 
f. In para 2 of box 3.1 it is  mentioned that "…. customs brokers are allowed to submit 
import/export declarations to any regional customs office ". Is there a differentiation between 
the AEO status or its implementation for an importing and exporting company and the one for 
customs bro kers, taking into consideration their fundamentally different particularities?  
 
RESPONSE  
Under the new scheme as referred to in the second bullet of Box 3.1, only importers/exporters and 
customs brokers that hold AEO status are eligible to submit import/ex port declarations to any 
regional custom office. There is no differentiation in treatment between them under this scheme.  
 
3.3 Measures Affecting Production and Trade  
3.3.3 Competition Policy and Price Controls  
 
Para 3.92:  As stated in 3.92, the Anti -Mono poly Act will be amended in order to align its 
enforcement with common rules under the TPP competition chapter. Is this also the case now that 
the TPP will not be in force? Are the competition provision in the TPP being considered as the new 
standard of mu lti- and bilateral competition policy which will be commonly used by Japan as a 
model for future Free Trade Agreements?  
 
RESPONSE  
Japan considers that the Competition Policy chapter of the TPP introduces new rules, such as 
detailed and concrete provisions regarding procedural fairness and transparency in the area of 
competition law enforcement, which were not provided for in Japan 's previous FTAs/EPAs. The 
rules to be introduced in the future FTAs/EPAs may vary depending on the partner country or the 
negoti ation, however, the Government of Japan continues to aim to establish high -level rules on 
competition policy and enforcement in future FTAs/EPAs  
 
Chapter 3.3.3  does not mention State -Owned Enterprises (SOEs). Are such SOEs also governed by 
the Anti -monopol y Act or are they regulated separately?  
 
RESPONSE  
Japan does not have specific legislation to govern SOEs comprehensively. SOEs with economic 
activities fall under "entrepreneur(s)" under the Anti -monopoly Act (AMA), with regard to their 
economic activitie s. Therefore, all the economic activities of SOEs are subject to the AMA.  
 
Table 3.13:  Japan continues to be involved in bilateral cooperation with overseas competition 
authorities (Table 3.13). Is it foreseen to conclude other cooperation agreements in sh ort or 
middle term and if yes with which countries? Do the current bilateral agreements (respectively the 
future ones) include the possibility to exchange confidential information?  
 
RESPONSE  
There is no additional cooperation agreement whose conclusion is foreseeable in short or middle 
term.  
It is possible to exchange confidential information under the current bilateral agreements in cases 
including the one where the parties consent to exchange by way of a waiver.  
 WT/TPR/M/351/Add.1  
 
- 25 - 
 
  4.1 Agriculture  
4.1.2 Agricultural policie s 
4.1.2.1 Legal and institutional framework  
Para 4.9:  As stated in the Secretariat 's report, the current agric ultural policy adopted in 
March  2015 aims to double incomes in agriculture and rural areas over the next ten years. Are 
there already first result s on whether the policy is effective?  
 
RESPONSE  
Agricultural income produced in 2015 is the largest (3,289 billion yen) for the past decade because 
of our agricultural policy reform.  Regarding relevant income in rural areas, there is an upward 
trend as a r esult of promotion of exports and higher added value of agriculture, forestry and 
fishery products and foods.  
 
 
4.4 Mining and Energy  
4.4.2 Primary energy  
 
Para. 4.62  states that Japans dependency on imports for all its fossil fuels has a bearing on its 
long-term strategy on energy mix. Furthermore, the Long -Term Energy Supply and Demand 
Outlook foresees a decline of coal and other fossil fuels in Japans energy mix while the part of 
renewable energies will increase. What are the policies foreseen to attain this goal and, how do 
these policies relate to Japans G7 commitment to end fossil fuel subsidies by 2025?  
 
RESPONSE  
To realize the energy mix, the government of Japan will progress related policies and measures: 
energy efficiency and conservation, introduc ing renewable energy as much as possible, improving 
the efficiency of thermal power generation and the restart of the nuclear power plants in case that 
the Nuclear Regulation Authority confirms the conformity of them with the new regulatory 
requirements.  
The government of Japan  remains committed to the elimination of inefficient fossil fuel subsidies 
and encourage all countries to do so by 2025.  
 
Report by Japan (WT/TPR/S/351)  
 
 
4. Japan 's Domestic Policies  
4.4 Agricultural Reform  
Para 4.13:  In its report, the government of Japan indicates that it took measures in order to 
address the challenges of an aging society and declining population. Can Japan please explain 
what kind of measures it is referring to and whether there are other measures planned to deal with 
the change of generations in the agricultural sector?  
 
RESPONSE  
In the agricultural sector of Japan, the age distribution of farmers is quite unbalanced; among 
those who mainly engage in farming, 65 or older persons account for about 60%, while those 
under 40 account for only about 10%.  
In order to achieve an inter -generationally balanced agricultural structure, the Government of 
Japan takes measures for those who are younger than 45 years old in principle such as; (1) a fixed 
rate of payment to those who want to be a farmer, to take training of farming methods and 
management know -how, as well as to those who just started faming; and (2) aid for agricultural 
corporations that employ young farmers as trainees.  
 
 
REVISED ANSWER - SWITZERLAND  
Q9-1. As stat ed in 3.92, the Anti -Monopoly Act will be amended in order to align its enforcement 
with common rules under the TPP competition chapter. Is this also the case now that the TPP will 
not be in force?  
 WT/TPR/M/351/Add.1  
 
- 26 - 
 
  RESPONSE  
The Diet passed the TPP related bills (the Bill on the Development of Related Legislation Following 
the Conclusion of the Trans -Pacific Partnership Agreement), including the partial amendment of 
the AMA to introduce a commitment procedure, in December, 2016. However, the effective date of 
the bill is th e date of entry into force of the TPP Agreement for Japan, and thus the partial 
amendment of the AMA will not enter into force until the TPP enters into force.  
 
 
3. HONG KONG, CHINA  
A. Trade and Investment Development and Related Policies  
The Trans -Pacific Pa rtnership (TPP)  
(WT/TPR/S/351 : Page 50, para 3.92; Page 79, para 3.180)  
(WT/TPR/G/351 : Page 17, para 4.18)  
 
1. According to the authorities, a bill was submitted on  8 March 2016 to amend the 
Anti-Monopoly Act in order to align its enforcement procedures wit h common rules under the TPP 
competition chapter. Japan has also been considering other measures necessary to implement the 
TPP Agreement, such as those in relation to patents.  
 
Question:  
Will the uncertainty associated with the TPP have any impact on the enactment, implementation or 
operation of this bill or other measures that are being considered?  
 
RESPONSE  
The Government of Japan has already completed necessary legislation and administrative orders 
toward the entry into force of the TPP Agreement. Most of those laws and administrative orders 
will come into force on the effective date of the TPP Agreement.  
 
B. Trade Policies and Practices by Measure  
Intellectual Property Rights  
(WT/TPR/S/351 : Page 80, para 3.190, Table 3.35)  
 
2. The number of trademark applica tions increased from 124,442 in 2014 to 147,283 in 2015.  
 
Question:  
We are interested to know whether Japan has conducted any analysis with respect to the notable 
increase in trademark applications in 2015. Was it because motion marks, hologram marks, colo ur 
per se marks, sound marks and position marks had been made registerable? Or was there a 
decrease in application fee, or did Japan 's Trade Marks Office introduce some incentives?  
Japan is a contracting party to the Protocol Relating to the Madrid Agreeme nt Concerning the 
International Registration of Marks. Among the trade marks applications made to Japan 's Trade 
Marks Office in 2014, 2015 and 2016, can Japan provide a yearly breakdown on how many of 
them were made directly to its Trade Marks Office, and how many through the Madrid System?  
 
RESPONSE  
The Japan Patent Office (JPO) has not analyzed the reasons for the increase of the number of 
trademark applications in 2015.  
The total number of trademark applications filed for non -traditional trademarks (moti on marks, 
hologram marks, colour per se marks, sound marks and position marks) in 2015 was 1,150. The 
JPO has not implemented any particular initiatives that greatly affect the increase of applications 
such as lowering of application fees.  
The total number  of trademark applications filed in 2014 was 124,442. Regarding breakdown of it, 
the number of applications directly filed with the JPO was 111,770 and those that used the Madrid 
System was 12,672.  
The total number of trademark applications filed in 2015 w as 147,283. Regarding breakdown of it, 
the number of applications directly filed with the JPO was 131,299 and those that used the Madrid 
System was 15,984.  
The total number of trademark applications filed in 2016 cannot be provided, as the JPO has not 
have the final numbers yet.  
 WT/TPR/M/351/Add.1  
 
- 27 - 
 
  (WT/TPR/S/351 : Page 82, para 3.197)  
3. The 2012 amendment of the Copyright Law, which imposes criminal penalties for illegally 
downloading copyrighted materials, entered into force in 2013.  
 
Question:  
We note that illegal downloading  could constitute a criminal act in Japan. What is the number of 
convicted cases? Does the Copyright Office consider the Law effective in combating copyright 
infringement?  
While registration is not required for copyright protection in Japan, is there a vol untary copyright 
registration system in Japan? If yes, what are the operational details?  
Is there any copyright licensing mechanism or body in Japan that regulates or oversees the 
licensing of copyright works (e.g. manga, movies, music, photos) or collecti on of royalties? If yes, 
what are the operational details?  
 
RESPONSE  
The Government of Japan does not have statistics of convicted cases on illegal downloading. Since 
the Copyright Law has provisions on criminal penalties for the person illegally downloadi ng 
copyrighted materials, the Government of Japan considers these provisions are effective for 
deterring such acts.  
In order to make public the facts concerning copyright and ensure fair transaction of copyright, 
Copyright Law provides voluntary registrat ion systems, such as registration of the true name for 
an anonymous or pseudonymous works , date of creation, and the transfer of copyright.  
For details, please refer to the websites of the Agency for Cultural Affairs.  
http://www.bunka.go.jp/seisaku/chosak uken/seidokaisetsu/toroku_seido/ . (Japanese only)  
In Japan, Law on Management Business of Copyright and Neighboring Rights regulates collective 
management organizations (CMOs) that decide royalty rates of consigned copyright works. These 
CMOs are obliged t o be registered by the Commissioner for Cultural Affairs, and when stipulating 
the management consignment contract and specifying royalty rules, making a notification to the 
Commissioner for Agency for Cultural Affairs is required. Currently, 29 CMOs are r egistered.  
 
(WT/TPR/S/351 : Page 76, Table 3.31; Page 82, para 3.198)  
4. Various amendments were made to the Copyright Law in 2014. Selected exclusions and 
limitations are listed in Table 3.31.  
 
Question:  
We would like to know if Japan 's Copyright Law provide s for copyright exceptions for (i) parody, 
satire, caricature or pastiche; and (ii) criticism, review, quotation or commenting on current 
events. If yes, do the exceptions fall under fair use or fair dealing type? We should be grateful if 
more details coul d be provided on the exceptions.  
 
RESPONSE  
There are no copyright limitations directly targeting the use of copyrighted works for the purpose 
of (i) in Q4.  
Regarding (ii) in Q4, Article 32 paragraph 1 of the Copyright Law is a related provision on 
excepti on. The said Article stipulates that "it is permissible to quote from and thereby exploit a 
work that has been made public. In such a case, the work must be quoted consistent with fair 
practices and within a scope that is justified by the aim of news repor t, critique, study, or other 
place in which the work is quoted".  
The Government of Japan considers that there are similarities in terms of requirements and effects 
among fair dealing rules in the UK, fair use provisions in the US and the Copyright Law Arti cle 32 
paragraph 1 stated above.  
 
(WT/TPR/S/351 : Page 86, paras 213 -214) 
5. The 2015 Strategic Programme has identified three pillars to develop high technology in 
Japan and promote the IP culture among businesses. The three pillars include (i) promotion of 
local utilisation of IP; (ii) activation of the IP dispute resolution system; and (iii) overseas 
expansion of content (such as manga, animation, and dramas) and their peripheral industries.  
Despite the significance of SMEs in Japan 's economy, they only mad e up a relatively small 
proportion of patent applications in 2014. The authorities have thus put in place a number of 
mechanisms to promote SMEs ' use of intellectual property and support their collaboration with 
large enterprises / universities. Specific c ounters have also been set up throughout the country to 
respond to SMEs ' management issues.  WT/TPR/M/351/Add.1  
 
- 28 - 
 
  Question:  
We would like to know more about the mechanisms to promote SMEs ' use of intellectual property 
and enhance their collaboration with large enterprises/unive rsities, and how they have contributed 
to achieving the intended purposes.  
We would also like to know if there are any IP -related tax initiatives for SMEs.  
For the specific counters established to respond to SMEs ' management issues, could Japan share 
with us what main issues/concerns are raised by SMEs, and how they are being dealt with?  
 
RESPONSE  
The Government of Japan provides supports according to the needs at each stage of IP activities of 
SMEs, from the time they create ideas up to when they establish  their business operations, in 
collaboration with related support organizations including IP Comprehensive Support Counters 
established in each prefecture, chamber of commerce, commerce and industry association, 
research institutes and local governments.  
There is no IP -related tax initiatives for SMEs.  
The main issues raised by SMEs are applications concerned such as application procedures and 
prior art search, which account for more than half of the issues dealt with by the IP 
Comprehensive Support Counter s. Specialist staff of the Counters, who have experienced in IP 
practice, provide advice or solution, in coordination with patent attorneys, lawyers and other IP 
specialists.  
 
(WT/TPR/S/351 : Page 86, para 3.215)  
6. Some significant changes would be made to t he IP dispute resolution system under the 2015 
strategic plan, including enhancing the validity of rights from the time they are granted through 
dispute settlement; improving evidence collection procedures to reduce the burden of proof on 
right holders; re forming the compensation for damages to reflect the actual status of business. 
Specific measures are also being taken to improve SMEs ' access to a fairer dispute settlement 
system.  
 
Question:  
Can Japan provide more details about the changes that would be m ade to the IP dispute resolution 
system? Do they cover arbitration, mediation or other means of alternative dispute resolution 
(ADR)?  
 
RESPONSE  
Please refer to the link below, P66 -72 of "IP Strategy Program 2016," which states the current 
situation and ch allenges as well as the measures for the future regarding the IP dispute resolution 
system. Concrete measures about the system are now under review at the related government 
ministries and agencies including Cabinet Office, Ministry of Justice and Ministry  of Economy, Trade 
and Industry based on this Plan.  
 
C. Trade Policies by Sector  
Financial Services  
(WT/TPR/S/351: Pages 108 -109, paras 4.81, 4.86 -4.87) 
7. We note that the amendments to the 1947 Banking Act which entered into force in April 2014 
involve stricte r rules on licensing standards, information obligations, maintenance of assets in 
Japan and supervisory powers in case of bankruptcy or reorganisation proceedings. In order to 
obtain a licence under the amended act, foreign bank branches are required to (i ) reserve assets 
at least the equivalent to the stated capital of US$2 billion within Japan; (ii) record a profit in at 
least one of the three years following the commencement of its business; (iii) have officers and 
employees with sufficient knowledge and  experience; and (iv) use business methods which are 
appropriate for the protection of depositors and the maintenance of the stability of the financial 
system.  
 
Question:  
Please advise if the licensing requirement of "recording a profit in at least one of the three years 
following the commencement of its business" also applies to the local banks. If not, please share 
with us the rationale of imposing different profitability requirements on local banks and foreign 
bank branches established in Japan with a vi ew to protecting depositors.  
 WT/TPR/M/351/Add.1  
 
- 29 - 
 
  RESPONSE  
The licensing requirement applies to Japanese banks as well, which is prescribed in the Ordinance 
for Enforcement of the Banking Act  (Article 1 -8(3)(ii)).  
 
Audiovisual Services  
(WT/TPR/S/351: Page 115, paras 4.103 -4.104) 
8. For motion picture and video tape production and distribution services, it  is noted that Japan 
has undertaken full GATS commitments for modes 1, 2 and 3 under market access, full 
commitments for mode 1 and 2 under national treatment, and "none except a s indicated in the 
horizontal commitments" for mode 3 under national treatment. According to the Secretariat 
Report, Japan has a co -production agreement with Canada and another co -production agreement 
signed between Japan 's designated body Unijapan and the  French Centre National du Cinéma . No 
GATS MFN exemptions were listed for those two agreements.  
 
Question:  
Please provide more details on the "co -production agreements" that Japan has signed with Canada 
and France, and clarify if those agreements accord mo re favourable treatment to Canada and 
France than to other WTO Members with regard to motion picture and video tape production and 
distribution services (CPC 9611) covered in Japan 's GATS commitments.  
 
RESPONSE  
1. Japan has no "co -production agreement" so far. With regard to the "statement" at issue with 
Canada, it does not affect the rights and obligations of Japan. Hence, this does not bring any 
inconsistency of Japan with its commitment under the GATS.  
2. With regard to the memorandum at issue between UN IJAPAN and the French organization, since 
UNIJAPAN is a non -governmental organization, the Government of Japan is not in a position to 
provide any detailed information.  
 
Television Services  
(WT/TPR/S/351: Page 118, para 4.117 ) 
9. It is noted that the radio wa ves for broadcasting and telecommunications are allocated by the 
Japanese authorities in accordance with the provisions of the Radio Act of 1950 which was last 
amended in November 2010. The Japanese authorities have explored the possibility of introducing 
the auctioning of radio waves but have yet to adopt this alternative policy.  
 
Question:  
We are interested to know whether there is any plan for the Japanese authorities to introduce the 
auctioning of radio waves for broadcasting and telecommunications.  
 
RESPONSE  
At present there is no plan to introduce the auctioning of radio waves for broadcasting and 
telecommunications.  
 
Medical Services  
(WT/TPR/S/351: Pages 128 -129, para 4.150 ) 
10. Both local and foreign owned and managed private clinics are allowed to be es tablished in 
Japan, provided that technical terms and conditions for opening clinics are fulfilled. However, 
permission of the prefectural governor, the city mayor or the ward mayor is mandatory if a person 
who wishes to open a medical institution is not g raduated from a clinical traineeship in Japan.  
 
Question:  
What are the criteria being taken into consideration by prefectural governors, city mayors or ward 
mayors in assessing whether permissions could be granted to persons who are not graduated from 
clinical traineeships in Japan?  
 
RESPONSE  
The criteria required for doctors who have graduated from clinical traineeships in Japan and the 
others are the same, but the procedures of them are different; the former requires only 
notification but the latter needs  by permission.  
 
 
 WT/TPR/M/351/Add.1  
 
- 30 - 
 
  4. CANADA  
Government Report - Japan  (G315)  
 
Part II. Trade and Investment Regime: FTA/EPAs, paragraph 2.15, page 6 . 
It is noted that Table 2.1 shows that eight Economic Partnership Agreements (EPAs) are 
currently under negotiation, four of which made headway in 2016.  
 
1. Can Japan provide any indication of progress and outstanding issues on the EPAs?  
 
RESPONSE  
In the past two years, the Agreement between Japan and Australia for an Economic Partnership 
entered into force on January 15, 20 15, and  the Agreement between Japan and Mongolia for an 
Economic Partnership entered into force on June 7 in 2016.  In add ition, with regard to the 
Trans -Pacific Partnership, Japan notified New Zealand, which is designated as the Depositary of 
the Agreement , of the completion of Japan 's domestic procedures for the TPP in January 2017 and 
became the first signatory to notify the Depository . 
 
2. Is Japan contemplating including environment provisions in any of its ongoing EPA 
negotiations?  If so, what types of  environment provisions does Japan expect these EPAs to 
include?  
 
RESPONSE  
Whether ongoing EPA negotiations include environment provisions depends on each negotiation. 
Among the EPAs which Japan has signed or concluded so far, the TPP agreement contains a n 
environment chapter  
 
Part II. Trade and Investment Policy: Japan 's Bilateral Activities outside of FTAs, the United States, 
paragraph 2.22, page 9 . 
It is noted that policy -level dialogues are aimed at deepening bilateral policy 
coordination and laying th e groundwork for greater Japan -U.S. coopera tion in the 
international fora.  
 
3. Can Japan please provide updated information on any new ministerial -level dialogues with the 
United States, particularly the structure and mandates of dialogues pertaining to tr ade and 
economic matters?  
 
RESPONSE  
At the Japan - United States Summit meeting, held on February 10, 2017, it was decided that an 
economic dialogue would be established under Deputy Prime Minister Aso and Vice President 
Pence. Issues planned to be discus sed at the economic dialogue are follows: (i) macroeconomic 
policies, such as monetary and fiscal policies; (ii) cooperation in the field of infrastructure, energy, 
cyber and space; (iii) rules for trade and investment, etc.  
For more information, please re fer to the following URL;  
http://www.mofa.go.jp/na/na1/us/page3e_000647.html . 
 
Part IV. Japan 's Domestic Policies: Intellectual Property Rights: paragraph 4.2, page 14 . 
It is noted that Japan has an IP Strategy Headquarters chaired by the Prime Minister.   
 
4. What are some of the trade and/or economic benefits that Japan has seen as a result of the 
Prime Minister 's close prioritization and oversight of IP?  
 
RESPONSE  
It is assumed that it has made the coordination and cooperation of IP related policies amon g 
different ministries easier, and the budget distribution and policy implementation more effective. 
For example, discussions of IP system addressing the 4th industrialization has been led by 
Intellectual Property Strategy Headquarters, Cabinet Office. It has had a certain effect on private 
sectors to realize the importance of IP strategies.  
 
It is assumed that it has made the coordination and cooperation of IP related policies among 
different ministries easier, and the budget distribution and policy implem entation more effective. 
For example, discussions of IP system addressing the 4th industrialization has been led by WT/TPR/M/351/Add.1  
 
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  Intellectual Property Strategy Headquarters, Cabinet Office. It has had a certain effect on private 
sectors to realize the importance of IP strategies.  
 
Part IV. Japan 's Domestic Policies: Intellectual Property Rights: paragraph 4.4, page 14:  
It is noted that two of Japan 's four pillars of the Intellectual Property Policy Vision ("the 
Vision") focus on enhancing industrial competitiveness and supporting intellectual 
property management by SMEs/venture companies.  
 
5. Could Japan explain how its use of sovereign patent funds, like IP Bridge, help support its policy 
stance for enhancing competitiveness?  
 
RESPONSE  
There is no sovereign patent fund  in Japan. IP Bridge is a private enterprise and is not subject to 
the government policy.  
 
6. How are patents generally chosen by IP Bridge to enhance the competitiveness of national 
entities (e.g. specific fields of technology, sp ecific types of patentee etc.)?  
 
RESPONSE  
As stated in the previous answer to Q5, the Government of Japan is not in the position to answer 
this question, because IP Bridge is a private enterprise.  
 
7. What patent defensive strategies have been used by IP Bridge (e.g. subscription -based 
defensive pools), and what is their effectiveness?  
 
RESPONSE  
As stated in the previous answer to Q5, the Government of Japan is not in the position to answer 
this question because IP Bridge is a private enterprise.  
 
8. In using a Sovereign Patent Fun d, how does Japan seek to balance the purpose of national 
competitiveness with the fears of seeming protectionist or anti -competitive to foreign 
investors/companies?  
 
RESPONSE  
As stated in the previous answer to Q5, there is no sovereign patent fund in Jap an. IP Bridge is a 
private enterprise and is not subject to government policy.  
 
9. How does IP Bridge valorize patents, ensuring that it is not accumulating a large number of 
valueless patents?  
 
RESPONSE  
As stated in the previous answer to Q5, the Governm ent of Japan is not in the position to answer 
this question, because IP Bridge is a private enterprise.  
 
Part IV. Japan 's Domestic Policies: Intellectual Property Rights: paragraph 4.6, page 14  
It is noted that on 9 May 2016, the Intellectual Property Stra tegy Headquarters decided 
on the Intellectual Property Strategic Program 2016. In this Program, 145 concrete 
actions were formulated under the following four goals.  
 
10. Can Japan list the actions taken under each of the 4 goals listed?  
 
RESPONSE  
Please r efer to the items described in the part of "Measures for the Future" in each chapter of "IP 
Strategic Program 2016." (The link is as follows)  
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf . 
 
Part IV. Japan 's Domestic Policies: Competition Policy: paragraph 4.18, page 17  
It is noted that on 8 March 2016, a bill for relevant law amendments associated with 
conclusion of the Trans -Pacific Partnership Agreement was submitted to the 190th 
ordinary Diet session and carried over to the 192nd extraordinary Diet session.  
 WT/TPR/M/351/Add.1  
 
- 32 - 
 
  11. Can Japan identify all the amendments included in this bill relevant to the intellectual property 
chapter of the Trans -Pacific Partnership Agreement?  
 
RESPONSE  
The following amendments are included in the TPP Amendme nt Law in regard to the intellectu al 
property chapter of the TPP.  
 
Relevant 
Articles in 
TPP Amendments  Main Provisions in the Amendment 
Law 
18.36  Introduction of procedures for GI protection 
pursuant to international agreements  Chapter 4 of the Geographi cal Indication 
Act 
18.38  Extension of grace period for patent application 
(6 months to 12 months)  Article 30 of the Patent Act  
18.46  Introduction of patent term extension for 
granting authority's delay  Article 67.2, 67.3, 67 -2, 67-3, and 67 -4 of 
the Pate nt Act  
18.62.3(a)  Grant of remuneration right to secondary use 
fees of online music distribution  Article 95.1 of the Copyright Act  
18.63  Extension of the duration of protection for 
copyrighted works (50 years to 70 years)  Article 51, 52, 53, 57, and 101  of the 
Copyright Act  
18.68  Improvement of a system of effective 
technological measures for managing use of 
copyrighted works, etc (access control)  Art 2.1.21, 113.3, and 120 -2 of the 
Copyright Act  
18.74.6  
18.74.7  Introduction of statutory damage system for 
copyright and trademark infringement  Article 38.4 of the Trademark Act  
Article 114.4 of the Copyright Act  
18.77.6(g)  Certain crimes of copyright infringement to be 
made prosecutable without the need for a formal 
complaint  Article 123.2 and 123.3 of th e Copyright 
Act 
 
Secretariat Report – Japan (S351)  
Part I. Economic Environment: Fiscal Policy, paragraph 1.15, page 16  
It is noted that the December 2015 "Economic and Fiscal Revitalization Action Program" 
indicates 80 main reform items in each expenditu re category.  
 
12. What are the priorities in each expenditure category under the Economic and Fiscal 
Revitalization Action Plan?  
 
RESPONSE  
The Government of Japan will advance expenditure reforms without exception, and The priorities 
are the 80 major ite ms stated in the "Economic and Fiscal Revitalization Action Program."  
Part II. Trade and Investment Regime: Investment Regime, paragraph 2.23, page 26  
It is noted that Japan "aims to double investment by for eign companies in Japan (to 
¥35 trillion) by end -FY2020 under the revised Japan Revitalization Strategy of 2014, 
through several initiatives including: regulatory reform to improve the business 
climate."  
 
13. What regulatory reforms does Japan intend to launch by end of 2020 in order to achieve the 
objec tive of improving the business environment under the Revitalization Strategy of 2014?   
 
RESPONSE  
The Government of Japan is implementing regulatory reforms in fields such as energy, healthcare, 
and agriculture, and also simplification of administrative pro cedures for incorporation and status of 
residence, etc., which is related to foreign companies.  
 
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Imports; Import 
prohibitions, restrictions, licensing, and quotas; paragraph 3.3 0, page 37  
It is noted that some commodities, including certain fish, are subject to import quotas, 
unchanged since Japan's previous review.  
 
14. Could Japan provide a list, or website in English or French, of fish and seafood products that 
are subject to  import quotas and the associated volumes?   WT/TPR/M/351/Add.1  
 
- 33 - 
 
  RESPONSE  
Import Announcements specify standards and procedures for the import quota application, which 
Japanese marine product importers are required to follow.  
Import Announcements are made only in Japanese. The  English or French translations are not 
available. However, fish and seafood products subject to import quotas are described in English in 
WTO document G/LIC/3/JPN/15, dated on 5 October 2016.  
 
Part III. Trade Policies and Practices by Measure: Import proh ibitions, restrictions, licensing, and 
quotas: paragraphs 3.34 to 3.37, page 38  
It is noted that Japan uses quantitative restrictions on imports of certain products such 
as certain fish products and controlled substances listed in the Montreal Protocol on 
Substances that Deplete the Ozone Layer.  
 
15. Can Japan clarify whether quantitative restrictions are used on other products, in particular, 
leather products?  
 
RESPONSE  
Japan has no quantitative restrictions on other products, including leather products.  
 
16. If so, can Japan clarify how import quotas on leather products and/or other products are 
allocated?  
 
RESPONSE  
Japan has no quantitative restrictions on other products, including leather products.  
 
Part III. Trade Policies and Practices by Measure: Sta ndards and other technical requirements: 
(3.3.6) paragraph 3.122, table 3.18, page 59 . 
It is noted that the Building Standard Law managed by the Ministry of Land, 
Infrastructure, Transport and Tourism (MLIT) applies to the construction of buildings, 
includ ing fireproofing and procedures for inspection and certification of buildings and 
type approval.  
 
17. Canada understands that the Building Standard Law requires each layer of laminate in a CLT 
panel to originate from a single species. Can Japan clarify the  purpose of this requirement and 
indicate whether it would accept species groupings if it met the same technical requirements as 
single species?  
 
RESPONSE  
The Building Standard Law requires CLT panels to meet the Japanese Agricultural Standard (JAS) 
when t hey are used as building materials, same as other wood -based materials. Regarding this, 
the Building Standard Law does not specify details such as the composition of materials.  
As for JAS, multiple species can be used on the condition that it complies with  the JAS  
 
Part III. Trade Policies and Practices by Measure: Standards and other technical requirements: 
paragraph 3.124, page 60  
It is noted that Japan has provided notification of a number of new technical regulations 
and conformity assessments procedure s including under the Legal Wood Use Promotion 
Law.  
 
18. Can Japan clarify how it will implement this law so as not to create un necessary burdens on 
exporters?  
 
RESPONSE  
The Act on the Promotion of Use and Distribution of Legally -Harvested Wood and Wood Pr oducts 
(unofficial translation of the title of the original Japanese law) aims to contribute to the 
preservation of natural environment by promoting the use of legally -harvested wood products in 
the domestic market, through encouraging related entities inc luding importers and exporters in 
Japan to confirm the legality of harvesting. Related ordinances of the Act are currently being 
formulated and Japan will implement the Act in such a way that it does not create unnecessary 
burdens on related entities.  
 WT/TPR/M/351/Add.1  
 
- 34 - 
 
  Part III. Trade Policies and Practices by Measure: 3.3.9 Government Procurement: paragraph 
3.164, page 68 . 
It is noted that " In addition, following a series of bilateral negotiations with the United 
States in the eighties and in the nineties, Japan has establ ished various (general and 
sector –specific) so -called 'voluntary measures ' implying commitments going beyond the 
WTO Government Procurement Agreement in terms of thresholds, entities and sectors 
covered and procedural obligations. " 
 
19. Can Japan please in dicate whether these voluntary measures apply to US suppliers only or to 
suppliers from other countries as well (e.g. GPA parties, Japan 's EPA partners)?   
 
RESPONSE  
The voluntary measures apply not only to the US but also to all Parties of the Agreement on  
Government Procurement and the revised Agreement on Government Procurement  
 
Part III. Trade Policies and Practices by Measure: 3.3.9 Government Procurement: paragraph 
3.167, page 70 . 
It is noted that "With regard to the procedures of central government en tities, a specific 
contractor may be selected under the single tendering contract method if, inter alia, the 
nature or objectives of the procurement do not allow competition, or competition is not 
possible or is 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."  
 
20. Are domestic -based su ppliers and foreign -based suppliers treated equally under the single 
tendering contract method?  
 
RESPONSE  
Domestic -based suppliers and foreign -based suppliers are treated equally under the single 
tendering contract method in accordance with relevant laws a nd regulations including the Accounts 
Law. 
 
Part III. Trade Policies and Practices by Measure: Government Procurement: paragraph 3.168, 
Table 3.25, page 71 . 
It is noted that foreign participation in Japan 's government procurement remained 
around 3% in valu e in 2014.  
 
21. Japan would benefit by having greater competition in its procurement tenders including higher 
quality products at better prices. Can Japan clarify the steps that it is taking to facilitate greater 
foreig n participation in its tenders?  
 
RESPONSE  
Japan has taken various initiatives which stimulate foreign participation to procurement tenders, 
one of which is organizing Government Procurement Seminar. This Seminar is open to domestic 
and foreign suppliers and the members of foreign missions / representative offices interested in 
the Japanese Government Procurements . 
 
22. What does Japan do to ensure that sub -national governments follow uniform practices when 
attributing contracts in government procurement?  
 
RESPONSE  
Japan enacts a cabinet orde r in accordance with procedures stipulated in the WTO -GPA, as rules 
which sub -central government entities listed in Annex 2 of the GPA should follow.  
 
 
Part III. Trade Policies and Practices by Measure: 3.3.9 Government Procurement: paragraph 
3.172, page 7 3. 
It is noted that "Most cases of proven infringement of Japan's Anti -Monopoly Act (AMA) 
continue to involve bid -rigging related to public works (Section 3.3.3). The Act for 
Promoting Proper Tendering and Contracting for Public Works defines major policy 
instruments for preventing bid -rigging and other improper actions."  WT/TPR/M/351/Add.1  
 
- 35 - 
 
  23. Are the results of Japan 's monitoring procedures accessible to the public? If so, can Japan 
please share relevant web addresses where  this information is available?  
 
RESPONSE  
The Gover nment of Japan does not collect information on and make public of the result of 
monitoring of each procuring authorities  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property: paragraph 3.175, page 74  
It is noted that Japan amended its law to provide for criminal penalties in relation to 
trade secrets.  
 
24. Could Japan confirm if these new criminal provisions have been used and if so what were the 
circumstances, i.e. the details of the violation and the remedy imposed, and if the provisi ons can 
apply in circumstances where the violation occurs outside Japan?  
 
 
RESPONSE  
Under the amended Unfair Competition Prevention Act, the scope of acts subject to criminal 
penalties has been expanded to include following acts:  
(1) the transfer, import o r export of products manufactured with the wrongful use of trade 
secrets  (§21(1)( ix)); and  
(2) the use or disclosure of trade secrets acquired with the knowledge that there has been an 
intervening improper disclosure with regard to the relevant trade secre t by 3rd and 
subsequent acquirer, for the purpose of wrongful gain, or causing damage to the company 
that owns them (§21(1)( viii)). 
 
The Government of Japan has not yet confirmed the case that these new criminal provisions  had 
been applied . (This amended A ct came into effect on January 1st, 2016.)  
 
The above provision (2) applies to a person who commits the offence outside Japan in connection 
with trade secrets of companies conducting business within Japan, but the above provision (1) 
does not. (§21(6))  
 
Further information is available at the below WIPO online information.  
http://www.wipo.int/wipolex/en/text.jsp?file_id=401411 . 
 
Part III. Trade Policies and Practices by Measure: 3.3.10.2 Patents: paragraph 3.179, page 78  
It is noted that in many circumstanc es the employer retains the patent unless the 
contract specifically states otherwise to the benefit of the employee and that the 
employee has the right to receive "reasonable remuneration or other economic profits" . 
It is further noted that METI has creat ed guidelines for making such determinations.  
 
25. What is the percentage of filed patents that are held by the employer vs individual 
inventor/employee?  
 
RESPONSE  
In 2015, 97.3% of the patent applications to JPO was filed by juridical person or government al 
agencies office,  while the rest of those (2.7%) was filed by individual. It cannot be statistically 
identified whether the filed patent application is classified as "employee invention", that means 
whether it was originally assigned from an employee to an employer.  
 
26. Can Japan provide a copy of the guidelines METI has developed for determining reasonable 
remuneration or other economic profits?  
 
RESPONSE  
Copy of the guideline in Japanese is available. English version is now in the process of translatio n 
(its publication date is not yet decided).  
 
Part III: Trade Policies and Practices by Measure: Intellectual Property: paragraphs 3.191 -3.194, 
page 81:  
It is noted that Japan introduced a new system for GIs for agricultural, forestry and 
fishery, and food stuffs.  WT/TPR/M/351/Add.1  
 
- 36 - 
 
  27. What is an example of a "forestry product" GI?  
 
RESPONSE  
There is no forestry product registered as GI at this point. Wood or bamboo materials, and edible 
sap could be eligible for the protection as GI products, for instance.  
 
28. Are producer  groups limited to domestic producer groups?  
 
RESPONSE  
Producer groups of GIs are not limited to domestic producer groups  
 
Part III.  Trade Policies and Practices by Measure: Intellectual Property Rights: paragraph  3.3.10.6, 
page 81 
It is noted that Japan h as enacted a new law for protecting geographical indications of 
foods, beverages, and agricultural and marine products.  
 
29. Could Japan confirm whether or not these new types of geographical indications may be 
subjected to opposition or cancellation proc eedings? If yes, can Japan please provide details 
regarding the scope of opposition and cancellations available including specific details regarding 
the legal process involved?  
 
RESPONSE  
The geographical indication system provides procedures that allow int erested persons to object to 
the protection of a GI. In particular, any person may submit a written opinion for GI products 
proposed to be registered within three months from the date of the publication for opposition.  
 
Additionally, the Minister of Agric ulture, Forestry and Fisheries may cancel the protection of 
registered GI products if they do not meet the criteria for the GI i.e. in case, including but nt 
limited to, that  
(1) a registered producer group no longer meets financial and organizational requ irements of the 
law; 
(2) a registered producer group does not properly manage the quality control and fail to show 
improvement;  
(3) given quality, reputation or other characteristics of the product are no longer attributed to the 
origin of the product;  
(4) the geographical indication becomes identical with the term customary in common language as 
the common name for the product; or  
(5) the consent of GI registration is withdrawn from the prior existing trademark right holder 
and/or the holder of exclusive r ight to use in case the name of the registered trademark is the 
same as or similar to the registered trademark.  
 
The information of GI is available for the provided link below (Japanese).  
http://www.maff.go.jp/j/shokusan/gi_act/outline/index.html . 
 
Part II I: Trade Policies and Practices by Measure: Intellectual Property: paragraphs 3.196, page 82  
It is noted that Japan protects GIs for alcoholic beverages through registration with the 
Commissioner of the National Tax Agency.  
 
30. How do foreign GIs for alco holic beverages get protected in Japan?  
 
RESPONSE  
GIs for foreign alcoholic beverages are protected after:  
(i) designation by the commissioner of National Tax Agency (NTA), or  
(ii) confirmation through negotiation with the Members of the WTO.  
In order to b e designated as GIs by the commissioner of NTA, precise information about respective 
GIs in Japanese should be submitted for the NTA 's consideration  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights: paragraph 3.197, 
page 82  
It is noted that the 2012 amendment of the Copyright Law, which imposes criminal 
penalties for illegally downloading copyrighted materials, entered into force in 2013.  
 WT/TPR/M/351/Add.1  
 
- 37 - 
 
  31. Could Japan provide specific details regarding the range of penalties enacted?  
 
RESPONSE  
A person who has been convicted of a crime stipulated in paragraph 3 of Article 119 of Copyright 
Act regarding illegal downloading of copyright materials is subject to imprisonment for a term of 
up to two years, a fine of up to two million yen, or bo th 
 
32. Could Japan provide specific details regarding the threshold for criminal penalties including 
elements of the offence(s) that may be imposed?  
 
RESPONSE  
Paragraph 3 of Article 119 of the Copyright Act stipulates that a person who infringes copyright  or 
related right by knowingly  making a digital sound or visual recording, for the purpose of a private 
use, upon reception of an interactive transmission which infringes copyright or related right of an 
onerous work etc.  shall be criminally punished.  
An"onerous work etc."means a recorded work, performance, broadcasting or cablecasting which is 
onerously offered to or made available to the public (only in case where such offering to or making 
available to the public does not infringe copyright or related r ights).  
"Knowingly"means knowing the fact that the work is onerous, and the interactive transmission 
infringes copyright or related right. Therefore, a person shall not be punishable if the person does 
not know these facts.  
Since paragraph 3 of the Articl e 119 is not subject to an ex-officio  action, criminal accusation by 
copyright owner is required to institute prosecution  
 
Part III. Trade Policies and Practices by Measure: 3.3.10.7 Copyright: paragraph 3.199, page 83  
It is noted that Japan has a separate  office for the registration of copyright for computer 
programs.  
 
33. What are some of the benefits of having a separate entity responsible for the registration of 
copyright related to computer programs?  
 
RESPONSE  
As for right related to computer programs,  various elements need to be considered depending on 
the specific nature of the computer programs, such as the criteria for registration, procedure of 
registration and the manner of public notices. To carry out such specific registration precisely and 
prom ptly, the registrations for the copyright related to computer programs are conducted by the 
Software Information Center (SOFTIC) which is a designated registration organization by the 
Commissioner for Cultural Affairs . 
 
Part III. Trade Policies and Practic es by Measure: Intellectual Property Rights: paragraph 3.203, 
page 83  
It is noted that according to the National Police Agency online information the number 
of confiscated goods decreased dramatically from 429,934 in 2014 to 175,488 in 2015.  
 
34. Could Jap an provide an explanation regarding the reason for the dramatic decrease in 
confiscated goods from 2014 to 2015? Did this trend continue in 2016?  
 
RESPONSE  
The number of cleared cases that led to the confiscation of infringement goods in large amounts 
decreased compared to the previous year.  
The Government of Japan is currently in the process of totalizing the numbers thereof for 2016.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights: paragraph 3.207, 
page 84  
It is noted that  in general, customs authorities confiscate goods identified as infringing 
IPRs and that the number of enforcement cases in relation to imports remained on an 
upward trend from 2011 to 2014, when the number of cases hit a record of 32,060, 
before dropping to 29,274 in 2015.  
 
35. Could Japan provide a break -down of the 2014 and 2015 enforcement cases by IPR category?  
 WT/TPR/M/351/Add.1  
 
- 38 - 
 
  RESPONSE  
The number of enforcement cases by IPR category in 2014 and 2015 is as follows:  
 
 2014  2015  
Patent  1 5 
Design  40 36 
Trademark  31816 28982  
Copyright  527 323 
Unfair Competition  86 50 
 
Note: In cases where one enforcement case infringes multiple categories of IPRs, it is counted in 
their respective categories of IPRs. Therefore, the sum of the enforcement cases by IPR categories  
does not necessarily match the number of enforcement cases as mentioned in paragraph 3.207 of 
the Secretariat 's Report.  
 
36. Could Japan also provide a break -down by percentage of which authorities determined specific 
goods as infringing different categories o f IPRs? (For example, XX% of trademark infringement 
determinations were made by custom authorities, XX% of trademark infringement determinations 
were made by judges etc. same for other categories of IP i.e. copyright and related rights, 
patents, industrial  designs, utility models and plant breeders' rights, as well as on the grounds of 
violation of unfair competition law by Japanese border measures).  
 
RESPONSE  
Japan Customs determines the infringement of IPRs against all the goods suspended at the border 
as it is authorized to do so, regardless of the categories of IPRs  
 
37. What are the top 5 source countries of IP infringing products entering Japan?  
 
RESPONSE  
The top five countries/customs territories from where IP infringing goods suspended at the border 
were shipped in 2015 is as follows.  
 
 (Number of Cases)  
China  26670  
Hong Kong, China  1227 
Republic of Korea  494 
The Philippines  392 
Thailand  123 
 
Part III. Trade Policies and Practices by Measure: Intellectual Property: paragraphs 3.210 – 3.211, 
page 85 
It is noted that Japan is a signatory to several bilateral and multilateral frameworks on 
IP issues, including some of the international treaties administered by the World 
Intellectual Property Organization (WIPO), and that during the review period Jap an 
continued to expand its participation in international IP frameworks.  
 
38. Does Japan intend to implement and accede to the WIPO Marrakesh Treaty to Facilitate Access 
to Published Works for Persons Who Are Blind, Visually Impaired, or Otherwise Print Di sabled?  
 
RESPONSE  
The Government of Japan considers that the WIPO Marrakesh VIP Treaty (hereinafter referred to 
as the "Treaty") is very important as a tool to facilitate access to and use of works by persons with 
visual impairments or with other print dis abilities. The Government of Japan has been conducting 
deliberations with a view to acceding to the Treaty in coordination with related groups and 
institutions.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights: paragraph 3.2 12, 
page 85  
It is noted that improvements to Japan 's IP infrastructure and institutions includes, the 
establishment of technology licence offices at universities.  
 
39. Could Japan explain the government 's policy in establishing these offices as well as it s role in 
their administration?  WT/TPR/M/351/Add.1  
 
- 39 - 
 
  RESPONSE  
Technology License Offices (TLOs) at universities, which are certified by Ministry of Economy, 
Trade and Industry (METI) and Ministry of Education, Culture, Sports, Science and Technology 
(MEXT) are eligible for fin ancing from national university corporations and discount for patent fees 
etc. 
The TLO system aims to new business development, improvement of industrial technology and 
vitalization of researches at universities by promoting efficient technology transfer f rom 
universities and national research institutes to private enterprises, which leads to facilitate 
changes in industry structure, sustainable development of national economy and progress of 
science and technology  
 
40. Does Japan provide special exceptions  in its law for IP developed by universities? For example, 
limiting damages against universities involved in patent infringement disputes, or providing 
incentives for the private sector to collaborate with universities to develop and commercialise IP?  
 
RESPONSE  
Regarding the legal exceptions for IP developed by universities, the Patent Act provides as follows. 
Please note that this article is also applied mutatis mutandis  in cases under the Utility Model Act 
and the Design Act.  
 
Patent Act  
Article 69 (1) A patent right shall not be effective against the working of the patented invention for 
experimental or research purposes.  
 
Industrial Technology Enhancement Act provides universities with the academic discount for the 
fees for patent application and request  for examination.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights: paragraph 3.213, 
page 85  
The Report identified Japan 's 2015 Strategic Programme, which included a goal of 
activating the intellectual property dispute resol ution system.  
 
41. Does Japan have a publically available English version of this plan?  
 
RESPONSE  
Please refer to the 2015/2016 version of documents in the links below at the official website of 
Intellectual Property Strategy Headquarters.  
 
<The full versi on (English)>  
2015: http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku2015_e.pdf . 
2016: http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf . 
 
<The Overview of the Plan (English) >  
http://www.kantei.go.jp/jp/singi/titeki2/ kettei/chizaikeikaku_2015gaiyou_e.pdf . 
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku2016_gaiyou_e.pdf . 
 
42. How does Japan 's specialized IP dispute resolution system support the innovation system?  
 
RESPONSE  
"IP Strategic Program 2015" state s as below regarding the question  42. 
"It is important to settle disputes concerning intellectual property in a prompt and appropriate 
manner in order to increase credibility for the intellectual property system which is fundamental to 
innovation, and supp ort economic growth. As the system for settlement of intellectual property 
disputes per se is facing international competition due to the globalization of economy and 
industry, Japan should aim to realize a highly effective system for intellectual property  dispute 
settlement attractive to users in and outside Japan and make sure that the use of the system 
becomes a domestic and international business standard. To this end, the country needs to 
constantly revise the system for intellectual property dispute s ettlement.  
Japan 's system for settlement of intellectual property disputes has so far been praised and has 
reached a certain level of reputation in terms of its swiftness, predictability, and economic 
efficiency etc., thanks to successive improvement effor ts including establishment of the Intellectual WT/TPR/M/351/Add.1  
 
- 40 - 
 
  Property High Court, concentration of jurisdiction, and repeated reforms of the Patent Act and 
other laws."  
 
Part III.  Trade Policies and Practices by Measure:  Intellectual Property Rights: paragraph  3.214, 
page 86 
The Report notes that authorities have put various mechanisms in place to promote 
SMEs' use of intellectual property, and enhance their collaboration with large 
enterprises/universities.  
 
43. Would Japan please elaborate on what mechanisms it has put  in place to promote SMEs ' use of 
IP and collaborate with larger industry and university?  
 
RESPONSE  
The Government of Japan provides supports for SMEs according to the needs at each stage of its 
IP activities, from the time they create ideas up to when the y establish their business operations, 
in collaboration with related support organizations including IP Comprehensive Support Counters 
established in each prefecture, chamber of commerce, commerce and industry association, 
research institutes and local gov ernments.  
 
44. Are Japanese SMEs adopting these mechanisms and how is Japan measuring their success 
(e.g. increased participation/collaboration)?  
 
RESPONSE  
Due to various support measures provided by the Government of Japan, SMEs made up 14% of all 
patent  applications in 2015 ( 13% in 2014). It is aimed at achieving 15% in 2019.  
 
Part III. Trade Policies and Practices by Measure: Intellectual Property Rights: paragraph 3.215, 
page 85  
It is noted that the IP dispute resolution system is set to undergo some s ignificant 
changes under the 2015 strategic plan, including enhancing the validity of rights from 
the time they are granted through dispute settlement; improving evidence collection 
procedures to reduce the burden of proof on right holders; reforming the c ompensation 
for damages to reflect the actual status of business, and improving SMEs full access to a 
fairer dispute settlement system.  
 
45. Can Japan explain more thoroughly the problems these issues are presently causing for right 
holders and defendants in Japan 's IP system and how the proposed reforms will address them?  
 
RESPONSE  
Please refer to the link below, P64 -72 of "IP Strategic Program 2016," which states the current 
situation and challenges as well as the measures for the future regarding the IP  dispute resolution 
system.  
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf  
 
46. What are the specific measures that will be taken to improve SMEs ' full access to a fairer 
dispute resolution system?  
 
RESPONSE  
"IP Strategic Prog ram 2016" states as below regarding the question:  
 
No. 2. Spread/Penetration of Intellectual Property Awareness/Activity  
2. Promotion of Intellectual Property Strategy Creation in Regional, SME, Agriculture, Forestry and 
Fishery, etc.  
(2) Measures for the Future  
 
(Intellectual Property Dispute -related Support)  
・In order to address IP dispute resolution cost -related challenges for SMEs, discuss concrete ways 
of publicizing and supporting public -private initiatives aimed at further developing intellectual 
property-inclusive litigation expense insurance which is available to SMEs. (Short -term) 
(Ministry of Economy, Trade and Industry)  
・In order to address IP dispute resolution human resource -related challenges for SMEs, establish 
a backup system for counselors  handling IP dispute resolutions at Yorozu Support Centers, such WT/TPR/M/351/Add.1  
 
- 41 - 
 
  as by including a lawyer on the support team at the national head office to advise local 
counselors. (Short -term, Medium -term) (Ministry of Economy, Trade and Industry)  
In order to support r egional access to IP specialists, work with relevant bodies to create a 
more robust system whereby those in more regional areas can request the help of a 
specialist in IP dispute resolution. (Short -term, Medium -term) (Ministry of Justice; Ministry 
of Econo my, Trade and Industry)  
 
47. Have other measures taken under the 2015 Strategic Plan with regard to the IP dispute 
resolution system been successful?  
 
RESPONSE  
It was reported to the Committee for Verification, Evaluation and Planning under Intellectual 
Property Strategy Headquarters in October 2015 that the policy items which had been described in 
"measures to be taken in the future" regarding the IP dispute resolution system have shown 
steady progress. For example, the support system for consulting at ea ch Yorozu Support Centre 
has been reinforced, and a support team with experts experienced in disputes and litigations has 
been set up at the headquarter of such Centers. Also, concrete measures about comprehensive IP 
dispute resolution system are now under  review in the Japan Patent Office based on "IP Strategic 
Program 2015" and that of 2016.  
 
Part IV. Trade Policies in Selected Sectors: Agriculture: 4.1.2 Agricultural Policies: 4.1.2.1 Legal 
and Institutional Framework: paragraph 4.9, page 91  
It is noted that the updated Food, Agriculture and Rural Affairs Basic Plan sets out the 
objective of doubling incomes in agriculture over the coming 10 years by increasing 
domestic and export demand, improving value chains, reducing costs, promoting 
structural reform , and improving productivity. The plan also sets revised self -sufficiency 
targets for FY2025 (45% on a calorie basis and 73% on a production value basis).  
 
48. As these self -sufficiency targets have been revised from those outlined in Japan 's 2013 Basic 
Plan (50% on a calorie basis and 70% on a production value basis by FY2020), could Japan 
indicate what progress towards self -sufficiency has been made to date?  
 
RESPONSE  
The Food, Agriculture and Rural Areas Basic Plan, adopted in March 2015, sets food sel f-sufficiency 
ratio targets for FY2025 at 45% for a calorie supply basis, and 73% on a production value basis. 
The self -sufficiency ratio is 39% for FY2013, FY2014 and FY2015 (latest) on a calorie supply basis, 
and 65%, 64% and 66% for FY2013, FY2014 and F Y2015 (latest) on a production value basis. The 
Japanese government continues to implement various related policy measures based on the Basic 
Plan, in order to achieve the self -sufficiency ratio targets for FY2025. The related policy measures 
include promo ting consumption of domestic agricultural products, encouraging farmers ' 
responsiveness to consumer needs, and supporting core farmers.  
 
49. Could Japan explain how its existing policies and its renewed emphasis on self -sufficiency are 
compatible with its strategy to boost export demand and industry competitiveness?  
 
RESPONSE  
The food self -sufficiency ratio is defined as the ratio of domestic production to supply for domestic 
consumption, calculated in terms of calorie supply basis, or production value basi s. Expanded 
export demand and improved competitiveness prompt farmers to increase production, leading to 
higher domestic production, and thereby contributing to an increase in the self -sufficiency ratio. 
The government of Japan continues to implement vario us related policy measures, based on the 
Basic Plan, in order to achieve the self -sufficiency ratio targets for FY2025 . 
 
Part IV. Trade Policies in Selected Sectors: Agriculture: 4.1.2 Agricultural: Policies: 4.1.2.1 Legal 
and Institutional Framework: Para graph 4.12, page 91  
It is noted that Japan is currently operating a diversion programme to encourage 
farmers to convert land from rice production to the production of other crops.  
 
50. Could Japan provide more information on how this diversion program ope rates?  
 WT/TPR/M/351/Add.1  
 
- 42 - 
 
  RESPONSE  
In Japan, as a result of the continuous decrease in demand for rice, need for proper preservation 
of paddy fields has been increasing. The objective of this program is to maintain favorable 
environment of paddy fields, and thus to prevent  floods or soil erosion, to cultivate water 
resources, and to preserve natural environment.  
When farmers switch their paddy field use from table rice to wheat, soybean and feed rice etc, 
while conserving favorable environment of paddy fields in accordance with the government 
program, they receive payments.  
 
51. Are rice producers required to switch production to any specific crops in order to receive 
payments or to participate in the program? If so, which crops?  
 
RESPONSE  
When farmers switch their paddy fi eld use from table rice to wheat, soybean and feed rice etc., 
while conserving favorable environment of paddy fields in accordance with the government 
program,  they receive payments.  
 
52. Does the support provided differ depending on what alternate crop pr oducers decide to plant 
instead of rice?  
 
RESPONSE  
The exact payment amounts vary, depending on the local conditions and management practices, 
but the amount of any payment is limited to the loss of income, taking into account activities such 
as preservat ion of paddy ribbing, drainage improvement, planting of ornamental plants, etc.  
Part IV. Trade Policies in Selected Sectors: Agriculture: 4.1.2 Agricultural Policies: 4.1.2.3 
Domestic Support: 4.1.2.3.1 General Support Programmes: paragraph 4.24, page 93  
It is noted that farmers that increase farm size continue to be eligible to receive 
payments of up to ¥10,000 for each additional 0.1 ha of farm size.  
 
53. Are payments contingent on the production of certain crops?  
 
 
RESPONSE  
Payments are not contingent o n the production of certain crops.  
 
54. Do payments under the program vary depending on the type of production taking place on the 
farms in question?  
 
RESPONSE  
Payments do not vary depending on the type of production taking place on farms.  
 
Part IV. Trade Policies in Selected Sectors: Agriculture: 4.1.2 Agricultural Policies: 4.1.2.3 
Domestic Support: 4.1.2.3.1 General Support Programmes: paragraph 4.26, page 93  
The Secretariat report notes that the Act on Multi -Functionality of Agriculture, which 
came into  force in April 2015, established three programs aimed to " 1) promote 
environmentally friendly farming practices and activities; 2) provide assistance to 
farmers in hilly and mountainous regions; and 3) maintain and enhance multi -
functionality".  
 
55. Could Japan elaborate as to the types of farming practices and activities that would be 
considered to be environmentally friendly and thus, would be eligible for support?  
 
RESPONSE  
Direct payment for environmentally friendly agriculture is paid to farmers ' groups that implement 
cover crop planting, compost application, organic farming and so on, combined with the reduced 
use of chemical fertilizers and synthetic pesticides by 50% or more.  
The government of Japan considers these practices eligible for support be cause these contribute to 
mitigating climate change and conserving biodiversity.  
 
56. Could Japan provide more information on its programme aimed at maintaining and enhancing 
multi-functionality? Specifically, how does the promotion of multi -functionality  co-exist with WT/TPR/M/351/Add.1  
 
- 43 - 
 
  Japan 's objectives of raising agricultural incomes, increasing competitiveness and promoting 
structural reform in the agri -food sector as noted in paragraph 4.9 on page 91?  
 
RESPONSE  
Agricultural policy reform consists of industrial policy a nd regional policy. The industrial policy, 
such as farmland consolidation and food export, which focuses on leading farmers, is making 
agriculture, forestry and fisheries competitive. On the other hand, the regional policy, which 
targets on the whole farme rs in each region, is securing the benefits of multi -functionality of 
agriculture, such as national land conservation. As for regional policy, in Japan, farming is closely 
related to the local community, because paddy fields have inseparable linkage with l ocal 
agricultural land and water. Thus, multi -functional roles of agriculture and rural areas have been 
maintained through the maintenance of irrigation channels, farm roads and agricultural land by 
regional joint activities.  However, regional joint activi ties have declined because of the aging and 
falling population.  If this trend continues, the burdens for leading farmers to maintain water 
channels and farm roads will be increased. As a result, it is concerning that the structural reform of 
farmland conso lidation to leading farmers may be blocked.  Based on these circumstances, Japan 
use direct payments to maintain and demonstrate the multi -functional roles of agriculture and 
rural areas, by supporting regional joint activities. In addition, these direct pa yments support 
structural reform of farmland consolidation to leading farmers by reducing leading farmers ' 
burdens.  
 
Part IV. Trade Policies in Selected Sectors: Agriculture: 4.1.2 Agricultural Policies: 4.1.2.3 
Domestic Support: 4.1.2.3.1 General Support Programmes: paragraph 4.30, page 94  
It is noted that the direct payments for rice programme was halved on April 1, 2014 and 
is to be abolished in the 2018 crop year. It goes on to note that in FY2014, "support for 
the introduction of high yielding rice var ieties was introduced to the direct payment 
programme".   
 
57. Is Japan currently providing both direct payments for ri ce producers under a 
production -limiting programme and direct payments tied to the production of high yielding rice 
varieties?  
 
RESPONSE  
The direct payment for table rice is paid under the rice production allotted by administration. In 
this context, the direct payment for table rice will eventually be abolished from production in 2018. 
On the other hand, support for production of high yieldi ng rice is targeted for feed rice and flour 
rice. 
58. Would any single rice producer be eligible for both a dire ct payment under the 
production -limiting programme (to be phased out in 2018) and for producing high yielding rice 
varieties?  
 
RESPONSE  
Single rice producers can receive both direct payment for table rice and support for production of 
high yielding feed rice and flour rice, when they produce (1) table rice under the rice production 
allotted by administration and (2) high yielding feed rice or flo ur rice . 
 
59. What kind of direct payments are being provided (seed purchase/logistical support/other input 
subsidies/direct payment based on farm size/etc.) to boost the adoption of high yielding rice 
varieties, and how are those payments being delivered?  
 
RESPONSE  
The Government pays farmers directly within the loss of income when farmers switch the paddy 
field use from table rice to high yielding feed rice and flour rice, while conserving a favorable 
environment of paddy fields in accordance with the Gov ernment program.  
 
60. How is the level of direct payment for the high yielding rice varieties calculated?  
 
RESPONSE  
The Government of Japan pays farmers directly within the loss of income when farmers switch the 
paddy field use from table rice to high yiel ding feed rice and flour rice, while conserving a 
favorable environment of paddy fields in accordance with the government program.  
 WT/TPR/M/351/Add.1  
 
- 44 - 
 
  Part IV. Trade Policies in Selected Sectors: Agriculture: 4.1.2 Agricultural Policies: 4.1.2.3 
Domestic Support: 4.1.2.3.1 G eneral Support Programmes: paragraph 4.31, page 94 . 
It is noted that Japan has expanded the number of products for which payments can be 
made based on area planted and the quantity and quality of annual output. These 
payments are now available for wheat, b arley, soya beans, sugar beet, starch potatoes, 
buckwheat and rapeseed.  
 
61. As these payments can distort resource allocation and promote the production of certain 
products at the expense of others, can Japan explain how these programs complement Japan 's 
objectives of increased competitiveness and structural reform in the agriculture sector?  
 
RESPONSE  
As, since 2015, the farmers qualified for receiving the direct payment have been limited to core 
farmers, namely certified farmers, certified new farmers or  community -based farm cooperatives 
who are expected to perform farming in an efficient and stable manner, it is promoting farming 
managed by core -farmers, and consequently contributing to the structural reform in the 
agriculture sector . 
 
Part IV. Trade Pol icies in Selected Sectors: 4.2 Fisheries, Stock M anagement, paragraph 4.57, 
page 100. 
It is noted that "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."  
 
62. Could Japan elaborate further on the bilateral cooperation and information sharing efforts it 
has taken to prevent and deter IUU fishing?  
 
RESPONSE  
Japan signed joint bilatera l statements with the EU and the United States in 2012 and 2015 
respectively, which include bilateral cooperation on efforts to combat IUU fishing, and have been 
cooperating with each other, including the sharing of information.  
Additionally, in the case w here alleged IUU fisheries are observed, Japan takes necessary actions 
bilaterally, for example, providing related information to the flag states, having bilateral meetings, 
and requesting related information, such as results of investigation and punishmen t to ensure the 
vessels have received appropriate treatment, including through diplomatic channels in addition to 
efforts through multilateral fora such as RFMOs  
 
Part IV. Trade Policies in Selected Sectors: Primary Energy: paragraph 4.63, page 102  
It is n oted that Japan 's number of filling stations and refineries is declining over time.  
 
63. Can Japan please explain why these numbers are declining?  
 
RESPONSE  
The number of filling stations in Japan is 32,333 in FY2015, decl ining from 60,421 at peak in 
FY1994. That of refineries is 23, decl ining from 49 at peak in FY 1983 as well.  
One Part of the reasons of these declining is decreasing demand of oil products in Japanese 
market, which is mainly caused by the peak out of population, and fuel -effective automobi le. In 
addition, highly -competitive filling stations market and reorganization of refineries accelerates the 
trend . 
 
 
REVISED ANSWERS - CANADA  
Part III. Trade Policies and Practices by Measure: 3.3.9 Government Procurement: paragraph 
3.164, page 68  
It is n oted that " In addition, following a series of bilateral negotiations with the United 
States in the eighties and in the nineties, Japan has established various (general and 
sector –specific) so -called 'voluntary measures ' implying commitments going beyond th e 
WTO Government Procurement Agreement in terms of thresholds, entities and sectors 
covered and procedural obligations. " WT/TPR/M/351/Add.1  
 
- 45 - 
 
  19. Can Japan please indicate whether these voluntary measures apply to US suppliers 
only or to suppliers from other countries as well (e.g. GPA parties, Japan 's EPA 
partners)?  
 
RESPONSE  
As long as the conditions for participation are satisfied, not only the business operators of the 
Parties of the GPA including the U.S. but also those of non -Parties of the GPA are eligible to 
participate  as suppliers in tendering for Japan's government procurement based on the voluntary 
measures.  
 
 
ADDITIONAL REPLIES  - CANADA  
Q1. In response to Indonesia 's question #2 (page 95 -96), Japan has confirmed that a tariff -rate 
quota (TRQ) exists for "footwear of  leather ". Can Japan explain how this TRQ is applied, namely 
what are the in -quota and out -of-quota tariff rates?  What is the volume of the quotas? And how 
are the quotas distributed among importers?  
 
A. Regarding in -quota and out -of-quota tariff rates  and the volume of the quotas on Leather  
foowear, p lease find a table below.  
 
Item  Tariff rates  Quantity  
 In-quota  Out-of-quota   
Leather footwear  17.3～24% 30% or \4,300/pair, whichever is the 
greater;  
30% or \2,400/pair, whichever is the 
greater  12,019,000 p airs 
 
At the beginning of each fiscal year (early April), the Ministry of Economy, Trade and Industry 
(METI) accepts applications for tariff quota (TQ) on leather footwear and allocates quotas.  
The method of quota allocation and its administration is  publicly announced through 
WTO notifications and Government 's website (in Japanese) and is conducted in a fair and 
transparent manner.  
http://www.meti.go.jp/policy/external_economy/trade_control/03_import/01_kanwari/kanwari.ht
ml 
Q2. Does Japan use mechanisms t o ensure applications of cabinet orders by sub -national 
governments? Also, does Japan have the means to intervene to impose uniform practices among 
sub-national government in attributing contracts?  
 
A. Sub -national governments in Japan abide by relevant la ws and regulations. The cabinet order 
was enacted under one of the relevant laws, to which sub -central government entities in Annex 2 
are subject.  
 
 
5. MOLDOVA, REPUBLIC OF  
QUESTIONS REGARDING THE SECRETARIAT REPORT ON THE TRADE POLICY REVIEW OF 
JAPAN  
(WT/ TPR/S/351 from 18 January 2017)  
 
Para 3.31  with regards to: "At present, products that require import approval or are prohibited 
include: certain marine products, certain medicines and chemical products, propellant powders, 
nuclear goods, weapons, wild ani mals and plants, substances that deplete the ozone layer, 
specified hazardous wastes, certain chemical weapons production materials, alcohol, rough 
diamonds, cultural property illegally removed from Iraq, all goods from the Democratic People's 
Republic of Korea, and weapons and other items from the Libyan Arab Jamahiriya and Eritrea, and 
Charcoal from Somalia, and chemical weapons and other items related to chemical weapons 
programme and cultural property illegally moved from Syrian Arab Republic, as per Un ited Nations 
Security Council Resolution.26 Licences to import are issued free of cost. Japan amended the 
Customs Law in March 2015; the amendment added the products designated under Article 2, 
paragraph 15 of the Law on Securing Quality, Efficacy and Safe ty of Products including 
Pharmaceuticals and Medical Devices to the list of items subject to import prohibition. In a WT/TPR/M/351/Add.1  
 
- 46 - 
 
  2016 amendment of the Customs Law, Japan added goods produced through the use of unlawfully 
obtained trade secrets (as stipulated by the U nfair Competition Prevention Act) to the list of items 
subject to import prohibition."  
 
Question 1  
Can you please specify in more detail what rules apply to the importation of alcohol?  
 
RESPONSE  
Japan Customs permits import of alcohol after confirming that  the necessary procedures have 
been performed in accordance with the Ethanol Business Act and Food Sanitation Act. Respective 
procedures are as follows.  
 
(i) Ethanol Business Act  
 
In principle, those who wish to import alcohol (under this Act, the term "a lcohol" (or "ethanol") 
means alcohol  with a 90 percent or higher alcoholic content) for a business purpose are required 
to obtain permission for its importation in accordance with the Article 16.  
Those who wish to import alcohol for the purposes of testing , research or analysis are required to 
obtain approval for each import in accordance with  Article 17.  
For details of this Act, please refer to the following URL;  
http://www.japaneselawtranslation.go.jp/law/detail/?id=2563&vm=04&re=01 . 
 
(ii) Food Sanitation  Act 
Those who wish to import food, including alcohol for sale or for use in their business, are required 
to submit import notification in accordance with Article 27 of Food Sanitation Act.  
 
For details of the procedure for importation, please refer to th e following URL;  
http://www.mhlw.go.jp/english/topics/importedfoods/1.html . 
 
Question 2  
Can you please list the pharma and medical devices which are currently subject to import 
prohibition?  
 
RESPONSE  
The attached document is a list of products designated u nder Article 2, paragraph 15 of the Law on 
Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices 
(as of  December 31. 2016 ). These products are currently subject to import prohibition under the 
Customs Law.  
 
Questio n 3 
Can you please describe the procedure used by your government to establish that imported goods 
had been produced through the use of unlawfully obtained trade secrets and how does that 
procedure complies with the TRIPS Agreement?  
 
RESPONSE  
Japan Custom s is authorized to suspend at the border the goods that were produced through the 
use of unlawfully obtained trade secrets, either based on an application for suspension submitted 
by a rights holder or on ex officio action by customs. In either case, when Japan Customs finds a 
good suspected of infringing IPR, Japan Customs initiates a procedure to determine whether the 
good infringes IPR. Upon initiation, Japan Customs notifies the rights holder and the importer of 
the good of the initiation of the procedu re. During the process, the rights holder and the importer 
are given opportunities to submit their opinion and/or evidence on the case. Based on the opinion 
and/or evidence, Japan Customs determines whether the good for importation infringes IPR. (This 
procedure is called "identification procedure" and the similar procedure is applicable to the 
exportation of goods.) (For more details on this procedures, please refer to the following website:  
http://www.customs.go.jp/mizugiwa/chiteki/pages/c_001_e.htm) . 
 
In the case of an application for suspension, first, a rights holder has to receive certification by the 
Minister of Economy, Trade and Industry that the good in question was produced through the use 
of unlawfully obtained trade secrets. Then the rights hold er submits to Japan Customs an 
application for suspension, accompanying a document containing the details of the certification. 
Based on the application and document, Japan Customs, through the identification procedure, WT/TPR/M/351/Add.1  
 
- 47 - 
 
  determines whether the good in quest ion constitutes an infringement. This procedure is compliant 
with Article 52 of TRIPS Agreement.  
In the case of ex officio, Japan Customs also determines whether the good in question constitutes 
an infringement  through the identification procedure. This pr ocedure is compliant with Article 58 of 
TRIPS Agreement.  
 
Para 3.60 with regards to: "Under the Customs Law, export prohibitions apply to a limited range 
of products including: 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)".  
 
Question 1  
Can you please describe the procedure used to deter mine that goods infringe intellectual property 
rights upon exportation in the context of the para 3.30 above?  
 
RESPONSE  
Japan Customs determines whether a good for exportation constitutes an infringement through the 
identification procedure, as referred to  in our answer to Q3.  
 
Question  2 
Can you please describe the procedure to determine that exported goods will constitute unfair 
competition?  
 
RESPONSE  
Japan Customs determines whether a good for exportation constitutes an unfair competition 
through the ide ntification procedure, as referred to in our answer to Q3.  
 
 
6. KOREA, REPUBLIC O F 
PART I: Questions Regarding the Secretariat Report   
 
 
Page 70~71 (Para 3.167 and 3.168)  
 
3.167 There have been no modifications to the 
open tendering rules or their exceptio ns since 
2014. 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 do not allow competition, or 
competiti on is not possible or is 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 corre sponds to "limited tendering" in the 
GPA.  
 
3.168. Foreign participation in Japan's government 
procurement is described in Tables 3.25 and 3.26.  
  
Question 1  
 
As foreign enterprises have to register for a business 
license to get information on the Japanes e tendering 
system, and the registration process and qualification 
requirements for foreign enterprises are complicated, 
foreign enterprises are at a great disadvantage when 
entering the government procurement market. 
Therefore, Korea requests Japan to mak e efforts to 
enhance the accessibility of the government procurement 
market.  
 
RESPONSE  
Regardless of the location of establishment, in 
accordance with the guideline 
(https://www.chotatujoho.go.jp/va/com/pdf/guide_intern
et2.zip) set out after page 10, an en terprise is required 
to submit documents such as a certificate of registered 
matters, a historical record of the company's business, a 
financial statement, a certificate of tax payment and a 
letter of commitment.  
 
 
Page 119 (Table 4. 15)  
 
Table 4.15 Restr ictions on foreign ownership 
applying to TV broadcasting companies  
  
Restrictions on foreign ownership of 
broadcasting companies  
 Basic  General   
Question 2  
 
Regarding the restrictions on foreign ownership applying 
to TV broadcasting companies set forth in Table 4.15, 
there is no description of transmission by system 
operators (SO). Does this mean that there are no 
restrictions on foreign ownership by system operators 
under  the Japanese broadcasting law?  
 
 WT/TPR/M/351/Add.1  
 
- 48 - 
 
  Terrestrial  Radio wave 
transmission 
activities:   
Under 20% 
(Radio Act 
Art.5, Para. 
4, items 2 
and 3)  
e.g. NHK 
and the five 
commercial 
terrestrial 
broadcasters  
 
Production 
activities:   
Under 20% 
(Broadcastin
g Act Art. 
93, Para. 1, 
item 
6(4)(5))  
e.g. NHK 
and the five 
commercial 
terrestrial 
broadcasters  Radio wave 
transmission 
activities:  
Under one 
third (Radi o 
Act Art. 5, 
Para. 1, item 
4)  
e.g. area 
broadcasting 
operators 
(local 
governments 
etc.)  
 
 
Production 
activities:  
No restrictions 
(Broadcasting 
Act Art. 133)  
e.g. area 
broadcasting 
operators 
(local 
governments 
etc.)  
Satellite  (BS/ 
CS110)63  
 
Radio wav e 
transmission 
activities   
Under 33% 
(Radio Act 
Art. 5, Para. 
1, item 4)  
i.e. 
Broadcasting 
Satellite 
System 
Corporation, 
Sky Perfect 
JSAT  
 
Production 
activities   
Under 20% 
(Broadcastin
g Act Art. 
93, Para. 1, 
item 6(4))  
e.g. BS 
Asahi, 
WOWOW  (CS124/CS128
) 
 
Radio wave 
transmission 
activities   
No restrictions  
(Radio Act Art. 
5, Para. 1, 
item 2)  
i.e. Sky 
Perfect JSAT  
 
Production 
activities   
No restrictions 
(Broadcasting 
Act Art. 126)  
e.g. Sky 
Perfect 
Broadcasting, 
USEN  
   
Cable  Irrelevant  Production  
activitiesa  
No restrictions 
(Broadcasting 
Act Art. 126 
and 133)  
e.g. J:COM  
   
   
 RESPONSE  
In case "system operators" means operators who operate 
the broadcasting equipment, refer to "radio  wave 
transmission activities" in Table 4.15.  
 
Question 3  
 
Korea requests a more concrete description of what kind 
of business the term "area broadcasting operators" 
specifically indicates.  
 
 
RESPONSE  
"Area broadcasting operators" provide broadcasting 
services within a specific small area in a part of a district 
in a municipality, aiming to meet the needs of that 
specific area. For instance, they would broadcast regional 
information to those areas, such as information about 
sightseeing, disaster prevention or local events in a 
stadium, university campuses or shopping streets, etc. 
The area broadcasting operators shall use "White 
Spaces" in the UHF band (470MHz to 710MHz), which are 
mainly allocated for terrestrial digital television 
broadcasting.  
 WT/TPR/M/351/Add.1  
 
- 49 - 
 
  Page 120( Paragraph 4.123)  
 
4.123. Video -on-demand OTT services are not 
considered as "broadcasting" services, and are not 
subject to foreign ownership restrictions. Examples 
include the U.S. IPTV provider Hulu, which offered 
its services as of 2011, on a 100% US o wned basis 
until its takeover by Nippon National Television 
Networks in 2014, or Netflix which launched a 
similar multi -device streaming service without a 
local shareholding partner in September 2015.  
 Question 4  
 
How are Video -On-demand OTT services cate gorized and 
what regulations are they subject to?  
 
RESPONSE  
Although what "Video -On-demand OTT services" means 
is not clear, when conducting business which provides 
telecommunication services prescribed in Article 2(4) of 
Telecommunications Business Law, t he registration 
prescribed in Article 9 or the notification prescribed in 
Article 16(1) is required. In case the operators do not 
mediate other communications, it may be an exemption 
from the application of the Telecommunications Business 
Law. 
 
 
PART II: Questions Regarding the Government Report   
 
Page 14 (Paragraph 4.4)  
 
4.4. Towards these goals, the following four pillars 
of the Vision, including policy challenges and 
efforts in the field of intellectual property were 
organized, looking at medium - and lo ng-term goals 
as approximately ten years into the future.  
− Building up a global intellectual property system 
for enhancing industrial competitiveness  
− Supporting the enhancement of intellectual 
property management by SMEs and venture 
companies  
− Improvin g the environment for adjusting to a 
digital network society  
− Strengthening soft power focusing on the 
content industry.  
 Question 5  
Does the fourth pillar, "strengthening soft power 
focusing on the content industry," include support for 
production in the  form of granting tax benefits, which is 
a major incentive provided under the joint production 
agreement?  
 
RESPONSE  
The fourth pillar does not include tax benefits for 
production  
 
 
7. UNITED STATES  
PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/351 ) 
1 ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
Page 13, paragraph 1.2 : Please confirm the Government 's ongoing commitment to pursuing 
ambitious structural (Third Arrow) reforms to reform and improve the business environment. Also, 
please describ e the concrete reform plans that have been identified for the coming year.  
 
RESPONSE  
The Abe Administration has tried to improve the business environment, for example,  
・Reform of so -called "bed -rock" regulations, such as electricity, agriculture and health care. 
・Reduction to less than 30% the corporation effective tax rate  , etc.  
We will continue to review r egulatory and administrative procedures so that the business 
environment becomes more business -friendly.  
Specifically, the Government of Japan is progr essing now with regulation reforms, the 
simplification of administration procedures and the use of IT for government operation in the 
Council for Promotion of Foreign Direct Investment in Japan, the Council on Investments for the 
Future and The Council for  Regulatory Reform from the perspective of, promoting foreign direct 
investment, updating administrative procedures in accordance with the technological innovation, 
and so on.  
 
Page 13, paragraph 1.3 : In view of the key reforms set out in this paragraph, p lease provide 
further details under (i) stabilizing the size of the labor force by boosting the participation of 
women and older people, and (iii) improving policies for small and medium -sized enterprises. 
Please identify the types of policies envisaged in  this respect.  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
The Government of Japan implemented following policy measures:  
① Measures for Promoting active participation by women and elderly  
The Government of Japan will strengthen support by utilizing subsidy system and tax measures for 
companies, proceed with initiatives through public procurement, improve the system that 
recognizes good practices, run campaigns, etc. to increase the number of women who serve as 
executive officers and who are in a managerial positions (encourage a listing company to appoint 
at least one women to be an executive officer), promote disclosure of i nformation on the 
appointment of women, create a database of women resources, etc.  
The Government of Japan will make public employees take the lead in employment/promotion of 
women, support a balance between work and child rearing, etc. by men and women.  
The Government of Japan will enhance support for enterprises, etc. where the elderly who are 
willing to work, regardless of age, seek to realize a society in which they can actively work in their 
life, by taking advantage of their capability and experience,  and continue employment until the 
age of 65 and older, and extend the mandatory retirement age to the age of 65. In addition, the 
Government will develop a mechanism nationwide to secure various employment and working 
opportunities, using local councils, while supporting re -employment of elderly people and ensure a 
dramatic enhancement of opportunities where the elderly can actively participate in society 
through the use of the "Lifetime working support desk" of the Hello Work and the "Career human 
resourc es bank for prospective elderly retirees" that is a platform of matching for prospective 
elderly retirees.  
 
② Measures for SMEs and microenterprises  
- Support for local SMEs ' expansion overseas  
- Support for improvement of productivity of mid -ranking companies, SMEs and microenterprises  
- Promotion of provision of growth funds that do not need collateral or a s urety by using a "local 
benchmark," etc., enhancement of financing functions, and acceleration of business 
revitalization/succession.  
 
 
1.2 Recent Economic Developments  
1.2.2 Fiscal Policy  
Page 16, paragraph 1.16 : Regarding the economic measures in August 2016, please provide 
additional detail on the specific measures to support small and medium -sized businesses, and 
owners of small businesses.  
 
RESPONSE  
The Government of Japan implements following policy measures for SMEs and microenterprises.  
- Financing support for SMEs and microenterprises such as loans of public financial institutions  
- Measures for realization of wage increase including improvement of terms and condition  
- Productivity improvement support for SMEs and microenterprises  
 
2 TRADE AND INVE STMENT REGIME  
2.2 WTO  
Page 5, paragraph 2.7 : What is the timeline for Japan to complete its domestic procedural 
requirements to implement its commitments pursuant to the Expansion of the Information 
Technology Agreement?  
 
RESPONSE  
The Government of Japan h as submitted the Expansion of the Information Technology Agreement 
to the Diet on 24th February, and now waits for its conclusion to be approved by the Diet . 
 
2.4 Investment Regime  
Page 26, paragraph 2.23 : With respect to the objective to double investment  by foreign companies 
in Japan through initiatives that include, among others, improving the system for the resolution of 
labor disputes, please provide further details concerning the steps taken or envisaged. For 
example, please clarify whether labor disp utes will be reviewed by a separate administrative body.  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
The Government of Japan is implementing regulatory reforms in fields, such as energy, healthcare, 
and agriculture. It is also implementing further enhancement initiatives to provide a more friendly 
business and living environment for foreign companies and foreign nationals.  
For example, in Japan, in order to make it easier for global companies and others to accurately 
understand employment rules in Japan, and to expand business without givin g rise to labor -related 
disputes, the Government of Japan has set up Employment and Labor Advisory Centers in National 
Strategic Special Zones,  and is carrying out advanced consultation with Employment Guidelines 
etc. that are based on analyses and categor ization of judicial precedents concerning labor relations  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.1 MFN Applied Tariff  
Page 35, paragraph 3.26 : The Secretariat 's Report states "There are 158 ta riff lines (1.7%) 
subject to MFN out -of-quota tariffs, of which 11 are under state trading. The out -of-quota rates for 
38 tariff lines are ad valorem . The average rates differ considerably: in -quota rates average 
18.4%, while out -of-quota rates average 76. 3%. The quota allocation method and process 
remains somewhat intricate." Please clarify how Japan determines the quota allocation method for 
the agricultural sector. Please identify the rationale behind the method and explain in detail how 
quotas are admin istered.  
 
RESPONSE  
Although the tariff lines stated in the report are not clear, the administrating method is determined 
based on the characteristics of each product. The method of quota allocation and its administration 
is publicly announced through WTO n otifications and the Government 's website, and is conducted 
in a fair and transparent manner  
 
3.1.4.2 Bound Tariff  
Page 35, paragraph 3.27 : The Secretariat 's Report states th at "The average bound rate 
(WTO  definition) is considerably higher for agricultura l products (16.7%) than for non -agricultural 
products (3.6%)." Please identify if Japan will further reduce the tariff peaks for agricultural 
products in the future.  
 
RESPONSE  
The current level of agricultural tariffs was a result of the UR negotiations. T he Government of 
Japan cannot prejudge the future development of the negotiations.  
 
3.1.5 Import Prohibitions, Restrictions, Licensing, and Quotas  
Page 38, paragraph 3.36 : The Secretariat 's Report states that un used quota entitlements are 
non-transferable and cannot be carried over to the next period, and that the government does not 
reallocate any unused quotas. The actual completion percentage of import quotas may be affected 
by the fact that the government does not reallocate any unused quotas. Please cl arify if Japan is 
planning to adjust the practice.  
 
RESPONSE  
If any amount of the quota remains unallocated, METI will re -allocate the unallocated portion to 
any applicant requesting additional import quotas.  
METI has imposed penalties on importers in orde r to promote the full use of import quotas 
allocated to importers.  
Concretely speaking, METI decides to allocate an adequate amount of import quotas for applicants 
(importers) after carefully examining their past achievement in relation to food product im ports. 
METI does not allocate the import quota of marine products to an importer who fails to import 
more than 80% of its amount of import quotas allocated to the importer in the previous year, 
without rational reason.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
3.1.6.4 Safeguard measures  
Page 41, paragraph 3.51 : The Secretariat 's Report states that Japan has no provision on the 
private sector 's submission of a request as one of the prerequisites to initiate a safeguard 
investigation. In rev iewing Japan 's WTO -notified laws and regulations, it appears that interested 
parties can request to consult with the Minister of Finance and the Minister of Economy, Trade and WT/TPR/M/351/Add.1  
 
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  Industry about the potential initiation of an investigation. Please clarify how interested parties 
would become aware of any pre -initiation discussions such that they would be able to request a 
timely consultation with the aforementioned ministries.  
 
RESPONSE  
Instead of the provisions for domestic industries to make a request to the government to impose 
anti-dumping duty or countervailing duty in the Cabinet Order Relating to Anti -dumping Duty 
(Cabinet Order No.416) or the Cabinet Order Relating to Countervailing Duty (Cabinet Order 
No.415), there is a similar provision in the Cabinet  Order Relating to Emergency Duties (Cabinet 
Order No.417), which enables domestic industries to make requests to the Minister having 
jurisdiction over that industry. As provided for in paragraph 1 of Article 11 of Cabinet Order 
Relating to Emergency Dutie s, when the Minister having jurisdiction over a particular industry 
receives such request, the Minister communicates to the Minister of Finance and the Minister of 
Economy, Trade and Industry to hold consultations with regard to the initiation of the 
investigation. Thus domestic industries are able to request a timely consultation to initiate an 
investigation.  
 
In addition, even though Japan indicates that a private sector submission is not a prerequisite for 
the initiation of a safeguard investigation, ple ase clarify whether Japan would entertain su ch a 
request from its industry.  
 
RESPONSE  
Please refer to the answer to Q9  
 
Finally, absent a request from its domestic industry for a safeguard investigation, please clarify 
how Japan determines that a safeguar d investigation is warranted.  
 
RESPONSE  
Please refer to the answer to Q9  
 
3.2 Measures Directly Affecting Exports  
3.2.4 Export Support and Promotion  
Page 45, paragraph 3.72 : The Secretariat 's Report states that the Japan Bank for International 
Cooperation (JBIC) provides buyers credit and export loans. Please clarify whether any of these 
programs support agricultural commodity exports.  If so, please identify how much support is given 
and for what commodities, and what are the destinations of the exports and  the repayment terms.  
 
RESPONSE  
JBIC does not provide any type of export financing support for agricultural commodity exports.  
 
3.3 Measures Affecting Production and Trade  
3.3.3 Competition Policy and Price Controls  
3.3.3.1 Recent Development  
Page 50, para graphs 3.89 -3.93: The Secretariat 's Report discusses Anti -Monopoly Act 
enforcement. Please identify what steps Japan has taken in government procurement to prevent 
bid-rigging and to provide for greater transparency and participation in the bidding process . 
 
RESPONSE  
Japan has sought for rigorous elimination of impropriety. To accurately carry out the duty to report 
to the Fair Trade Commission based on Article 10 of the Act for Promoting Proper Tendering and 
Contracting for Public Works, a manual was made public to facilitate the implementation by 
drafting the essential points for handling cases where information about bid -rigging is obtained, by 
making quick public announcements, and at the same time, by setting up internal 
information/report systems to ha ndle bid -rigging information.  
 
3.3.4 Corporate Governance  
Page 56, paragraphs 3.110 -3.111 : The Secretariat 's Report discusses the stewardship and 
corporate governance codes. The corporate governance code requires at least two independent 
directors and enco urages firms to implement a roadmap to ensure that at least one -third of the 
board is comprised of independent directors.  Please state what percentage of Japanese companies 
now have at least two independent directors on their board. Also, please discuss (1 ) the plan to 
review the effectiveness of the stewardship and corporate governance codes, and (2) whether the WT/TPR/M/351/Add.1  
 
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  Government is considering establishing by law a minimum number of outside independent 
directors for publicly -listed firms.   
 
RESPONSE  
According to  Tokyo Stock Exchange Inc. 's report of "Appointment of Independent Directors by 
TSE-Listed Companies", published on July 27, 2016, 79.7% of the Japanese companies listed on 
the 1st Section appoint two or more independent directors (increased by 653 compani es (31.3%) 
from the previous year). Regarding (1) in the question 14, for the purpose of further improving 
corporate governance of all listed companies, the Government of Japan established the "Council of 
Experts Concerning the Follow -up of Japan 's Steward ship Code and Japan 's Corporate Governance 
Code"  (hereinafter referred to as the Council), which is composed of experts; including members 
from corporate executives , local and foreign investors, and academics. The "Council" follows  up 
with the prevalence a nd adoption of Japan 's Stewardship Code and Japan 's Corporate Governance 
Code, and has published the opinion statements "Corporate Boards Seeking Sustainable Corporate 
Growth and Increased Corporate Value over the Mid - to Long -Term" and "Effective Stewards hip 
Activities of Institutional Investors."  
Regarding (2) in the question 14, the Government of Japan is considering whether or not it is 
necessary to establish within the Companies Act a mandatory requirement for listed companies to 
include at least one outside director.  
 
3.3.6 Standards and Other Technical Requirements  
Page 60, paragraph 3.123 : The Secretariat 's Report discusses standards and other technical 
requirements and recent changes to technical regulations. Is Japan committed to eliminating its 
unique standards and testing methodologies (e.g., safety and environmental) in its automotive 
sector in favor of adopting standards and methodologies more widely used around the globe? If so, 
please explain Japan 's plans, including timetable, to carry throu gh with this approach.  
 
RESPONSE  
The Government of Japan is promoting international harmonization activities of technical 
regulations on automobiles, under the UN/ECE World Forum for Harmonization of Vehicle 
Regulations (WP.29), which is a unique worldwi de forum to establish and review the technical 
regulations on automobiles. While Japan has already adopted 15 global technical regulations 
(GTRs), out of the existing 18 GTRs, the Government of Japan plans to adopt more GTRs to 
promote international regula tory harmonization.   
 
3.3.7 Sanitary and Phytosanitary Measures  
Page 63, paragraph 3.143 : The Secretariat 's Report states that food producers must provide 
detailed information regarding product ingredients.  More specifically, the Food Labeling Act 
requires  that all plant products containing chemical substances applied post -harvest, which Japan 
defines as food additives, be labeled on the retail signage. However, such a label is not required 
for chemical substances applied pre -harvest. Please explain Japan 's rationale for requiring a label 
for chemical substances that is only applied post -harvest.  
 
RESPONSE  
The chemical substance relevant to the question 16 appears to be a fungicide. Under the Food 
Sanitation Act (Act No. 233, 1947), post -harvest fungicide ad ded for the purpose of preserving is 
treated as a food additive.  
Regarding the labelling system for food additives, it is required for fungicide to label the name of 
the substance and its purpose as specified by the Food Labelling Standards (Ordinance of t he 
Cabinet Office No.10 of 2015) which is based on the Food Labelling Act, (Act No. 70, 2013)  
 
Page 65, paragraph 3.147 : The Secretariat 's Report notes that more than 800 pesticides have 
residue standards and at least 800 food additives, which include post -harvest fungicides, are 
approved for use.  Japan 's approval process requires a separate application and review process for 
pesticides and food additives.  We understand Japan has taken steps to streamline its review 
process.  Please provide an update on the progress on these efforts.  
 
RESPONSE  
The Ministry of Health, Labour and Welfare (MHLW) is considering implementing a streamlined 
approval process for fungicides that may be applied both pre -harvest and post -harvest, by utilizing 
a unified application and d eliberation process for approval of pesticides and food additives as 
follows:  WT/TPR/M/351/Add.1  
 
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  ・In the application process, one set of documents will be required in order to obtain approval for 
pre-harvest and post -harvest use of a fungicide; and  
・In the deliberation process of the Pharmaceutical Affairs and Food Sanitation Council, the 
Committee on  Pesticides and Veterinary Drugs and the Committee on Food Additives will jointly 
deliberate  
 
In addition, the Secretariat 's Report states that "According to the authorities, it is very difficult to 
confirm whether all of these substances comply with inter national standards." Given that Codex 
standards are available online, please explain why is it difficult to confirm whether national 
standards differ from international standards.  
RESPONSE  
Japan takes into account the Codex standards whenever reviewing Max imum Residue Limits 
(MRLs) for agricultural chemicals and food additive standards, in accordance with the Article 3.1 of 
the WTO SPS Agreement. However, it is practically very difficult to confirm whether as many as 
more than 800 food additives permitted f or use are aligned with Codex standards. This is because 
various standards are set for individual substances, including use standards and compositional 
specifications.  
The Government of Japan reviews its standards where necessary, and will continue to harm onize 
with relevant international standards, in collaboration with the risk management and risk 
assessment bodies  
 
Page 65, paragraph 3.148 : Regarding Japan 's import restrictions on beef to prevent the spread of 
BSE, please clarify when Japan will revisit its risk assessments for countries with negligible risk for 
BSE, as determined by the World Organization for Animal Health (OIE), to fully open its market to 
beef and beef products from animals of all ages, and to align with OIE guidelines for BSE.  
 
RESPON SE 
The SPS Agreement requires that the sanitary or phytosan itary measures conducted by 
WTO Members are based on scientific principles. As for BSE regulations, the MHLW requests risk 
assessment to FSCJ, taking into account the OIE evaluation.  
For raising f urther age restrictions, based on the international standards regarding the beef from 
13 countries including the U.S., Canada, France and the Netherlands etc., the MHLW has already 
requested risk assessment from FSCJ. After consultation with FSCJ, the MHLW  will call target 
countries for data necessary for risk assessment, and submit the collected data to FSCJ. After FSCJ 
notifies the MHLW of the risk assessment result, the MHLW will consider reviewing the beef import 
requirement based on the result of risk assessment.  
Since FSCJ conducts a risk assessment on the basis of the latest scientific findings of the time, the 
MHLW cannot prejudge a schedule and result of the risk assessments.  
 
3.3.8 Labeling and Packaging Requirements  
Page 66, paragraph 3.155 : The United States has heard that the Government of Japan (GOJ) may 
be considering expanding the target food items subject to mandatory GMO labeling. Is the GOJ 
planning to tighten GMO labeling requirements? If so, please identify the impetus for expanding 
the labeling requirements.  
 
RESPONSE  
The consideration for a GMO labelling system is based on the "Basic Plan for Consumers", decided 
by the Cabinet, which states that this system shall be individually discussed.  
The Government of Japan is currently carrying o ut three surveys on the scope of targeted items 
for mandatory labelling, and threshold for unintended presence of GMO, and furthermore the 
questionnaire survey for consumers is being carried out to identify their understanding, recognition 
or interest in a  GMO labelling system.  
The results of the surveys will be obtained by March, 2017 and an expert panel for discussion on 
GMO labelling system will be established from April, 2017 in light of the survey results. Therefore, 
nothing has been consolidated so f ar. 
 
 Is Japan concerned that Japanese consumers might perceive this change as addressing a non -
existing food safety concern?  
 
RESPONSE  
There exists a tendency that consumers avoid GM foods in certain degrees even if it is confirmed 
as safe. Considering th e above, the questionnaire survey for consumers is carried out to identify WT/TPR/M/351/Add.1  
 
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  their understanding, recognition or interest in a GMO labelling system. The labelling system will be 
considered in accordance with the result of the survey. It is planned to establi sh an expert panel 
for discussion from April, 2017 on, therefore nothing has been decided so far.  
 
 How would the new requirements be enforced? Please explain the impact for Japanese importers 
and exporters, as well for Japan 's domestic agriculture sector,  as plant breeders are looking to use 
innovative breeding techniques to develop new varieties for cultivation in Japan.  
 
RESPONSE  
Although an expert panel for discussion on GMO labelling system is supposed to be established 
from April, 2017 on, nothing ha s been determined so far. In such an expert panel, discussion in a 
comprehensive manner, including the impact on food businesses, is expected.  
 
3.3.9 Government procurement  
Page 67, paragraph 3.161 : The Secretariat 's Report states that, in May 2016, Japan introduced the 
"multiple bidding system," where two or more companies can bid on a project if one company 
cannot supply the full amount of the order alone. Could Japan please answer:  
 
 How is the "multiple bidding system" implemented in practice? Is "multip le bidding" allowed 
only after a tender is released in which no company bids (or where interested suppliers 
remark that they are unable to supply the full amount of the order)?  
 
RESPONSE  
In May 2016, "multiple -award tendering" became applicable to the pro curement by the local 
governments listed in Annex 2 of the WTO -GPA. A procuring entity which is a local government, 
when it awards a contract through general competitive bidding or selective bidding, may apply the 
"multiple -award tendering" in case it proc ures excessive quantity of delivery of goods or supply of 
services, in accordance with Article 10 of the  Cabinet Order Stipulating the Special Procedures for 
Government Procurement of Products or Specified Services by a Local Public Entity (Cabinet Order 
No.372 of November 1, 1995).  
For reference, the "multiple -award tendering" has already been introduced for the procurement by 
the central government, in accordance with Article 11 of the Cabinet Order Stipulating the Special 
Procedures for Government Procu rement of Products or Specified Services by the Central Public 
Entity (Cabinet Order No.300 of November 18, 1980)  
 
 Is the "multiple bidder system" used for goods, services, and construction (or works), or just 
for goods?  
 
RESPONSE  
It is applicable to procu rement of goods, services and construction services by both the local 
governments and the central government under the GPA.  
 
 Does the "multiple bidding system" require there to be any legal connection between the 
two or more companies, such as a joint vent ure arrangement?  
 
RESPONSE  
There is no such requirement under the system.  
 
 If there are two or more bidders competing for a contract under the "multiple bidding 
system," how are winning bidders determined? Does the procuring entity decide or are the 
suppli ers responsible for deciding how much work will be done (or how many products will 
be supplied) under the contract award?  
 
RESPONSE  
Under the "multiple -award tendering", which is applicable procurements by both the central and 
local governments, contracts are awarded to participants on price -base until the intended 
procuring quantity is fulfilled.  
 
Page 71, paragraph 3.168 : The Secretariat 's Report identifies the number, value, and the relative 
share of procurement awarded to foreign suppliers in Table 3.25  and Table 3.26. Could Japan 
please explain:  
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   How is the country of origin information collected in the contracting process?  
 
RESPONSE  
Under the voluntary measures, Japan 's methodology on the determination and estimation of the 
country of origin is the fol lowing.  
The country of origin of goods is determined based on the information provided by the suppliers. 
Such information includes countries of origin as indicated on the label attached to the procured 
goods and those described in the contract notes or oth er documents such as import invoices, 
producer's invoices and B/Ls. The country of origin of services is determined based on the 
nationality of winning tenderers. A company whose foreign ownership is over 50% is regarded as a 
foreign business operator, and  the nationality of the company determines the country of origin of 
services  
 
 How does Japan, for the purposes of reporting government procurement awards to foreign 
suppliers, determine the country of origin for goods and services?  
 
RESPONSE  
Under the volu ntary measures, Japan 's methodology on the determination and estimation of the 
country of origin is the following.  
The country of origin of goods is determined based on the information provided by the suppliers. 
Such information includes countries of origi n as indicated on the label attached to the procured 
goods and those described in the contract notes or other documents such as import invoices, 
producer's invoices and B/Ls. The country of origin of services is determined based on the 
nationality of winni ng tenderers. A company whose foreign ownership is over 50% is regarded as a 
foreign business operator, and the nationality of the company determines the country of origin of 
services  
 
3.3.10 Intellectual Property Rights  
3.3.10.6 Geographical Indications  
Pages 81 -82, paragraphs 3.191 -3.195 : The Secretariat's Report notes that Japan has a new law 
for protecting geographical indications (Act on Protection of the Names of Specific Agricultural, 
Forestry and Fishery Products and Foodstuffs) which came into forc e in June 2015, establishing a 
GI registration system under the Ministry of Agriculture, Forestry and Fisheries (MAFF). Please 
confirm that the exclusive rights trademark owners enjoy which are established under Article 16.1 
of the TRIPs Agreement will be considered in the determination as to whether a proposed sign will 
be protected and registered as a GI under the new law.  
 
RESPONSE  
The application for registration of a GI which is identical or similar to a registered trademark shall 
be refused, unless t he application is filed with a consent of the trademark right holder.  
 
The same section also notes that Japan has a regional collective trademark system under the 
Japan Patent Office (JPO) which grants protection to a combined mark composed of a place name  
and product name. Please elaborate on how the regional collective trademark system under JPO 
interacts with the new GI system under MAFF. Will registration of a sign in one system prevent the 
registration in the other system?  
 
RESPONSE  
The regional collec tive trademark system permits the registration of a trademark which consists of 
a name of a place and a name of a good or a service that gained a certain level of recognition 
when filed by an organization satisfies the requirements of the Trademark Law.  
On the other hand, the GI system provides protection of the GI under the TRIPs Agreement. Each 
system provides different advantages, and allows a sign to be registered under the both systems if 
it qualifies both requirements.  
Please note that in order to r egister a GI which is identical or similar to a registered regional 
collective trademark, a consent of the regional collective trademark right holder is required.  
 
3.3.10.7 Copyright  
Page 82, paragraph 3.198 : The Secretariat 's Report indicates the 2014 ame ndments to the 
Copyright Law included provisions to implement the Beijing Treaty on Audiovisual Performances, to 
which Japan acceded in June 2014. Please provide further details on the scope of amendments 
made specifically to implement this treaty.  WT/TPR/M/351/Add.1  
 
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  RESPONS E 
To accede to the Beijing Treaty on Audiovisual Performances, the scope of the protected 
performances was extended to include those by nationals of the Contracting Party to the Treaty. 
(Article 7 (8) of the Copyright Law)  
 
3.3.10.10 The 2015 IP Strategic Programmes  
Page 86, paragraph 3.215 : The Secretariat 's Report indicates that the "IP dispute resolution 
system is set to undergo some significant changes under the 2015 strategic plan." Please provide 
further details regarding the proposal that involves "r eforming the compensation for damages to 
reflect the actual status of business."  
 
RESPONSE  
Please refer to the link below, Pages 6 6－72 of the "IP Strategic Program 2016," which states the 
current situation and challenges as well as the measures for the future regarding the IP dispute 
resolution system, following "IP Strategic Program 2015."  
Concrete measures about comprehensive IP di spute resolution system, including the compensation 
for damages, are now under review in the Japan Patent Office based on this Plan.  
IP strategic Program 2016:  
 
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
Page 90, table 4.4 : The Secretariat 's Repo rt provides data for quantity of wine (2204) imports in 
units of 1,000 tonnes. There appears to be some discrepancy in the data when compared to 
Japan 's trade statistics. Please confirm that this data should be reported as follows for the quantity 
of wine imports:  
 
Table 4.4: Wine imports (2204)  
Million liters  
2011 215 
2012 265 
2013 273 
2014 279 
2015 289 
 
RESPONSE  
The above figures are consistent with the figures from the trade statistics published by the 
government of Japan. Please note that the government  of Japan uses "liter" as the statistical unit 
for wine (2204).  
 
Page 90, table 4.5 : The Secretariat 's Report provides quantity export data on Waters with added 
sugar (2202), which includes non -alcoholic beverages, and Other fermented beverages (2206) in 
units of 1,000 tonnes. Once again, there appears to be some discrepancy in the data when 
compared to Japan 's trade statistics. Please confirm that this data should be reported as follows 
for the quantity of exports for each category:  
 
Table 4.5  
Waters with added sugar (2202)  
Million liters  
2011 43 
2012 48 
2013 51 
2014 72 
2015 81 
 
Other fermented beverages (2206)  
Million liters  
2011 16 
2012 16  
2013 18 
2014 18 
2015 20 
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
The above figures are consistent with the figures from trade statistics published b y Japan. Please 
note that Japan uses "liter" as the statistical unit for sugar (2202) and other fermented beverages 
(2206) . 
 
4.1.2 Agricultural Policies  
4.1.2.1 Legal and Institutional Framework  
 
Page 91, paragraph 4.9 : The Secretariat 's Report states that  Japan 's agricultural policy under the 
new Basic Plan sets a self -sufficiency target for feeds of 40% for FY2025. Please identify what 
crops will be used and what subsidies will be involved.  
 
RESPONSE  
In order to achieve 40% of a feed self -sufficiency targ et for FY2025, Japan is aiming at  100% for 
self-sufficiency in roughage feeds, such as pasture plants, and 20% for concentrate feeds, such as 
grains.  To raise the self -sufficiency ratio of  feeds, Japan provides some support for technology 
demonstration of grassland improvements and for conversion of food residues to feeds.  
 
 
The new Basic Plan also sets self -sufficiency targets for FY2025 of 45% on a calorie basis and 73% 
on a production value basis. Please clarify how such a target achieves the desired goa l of an 
economically viable, productive and diverse agricultural sector, and what specific policy measures 
will be used to obtain these goals.  
 
RESPONSE  
The Food, Agriculture and Rural Areas Basic Plan, adopted in March 2015, sets self -sufficiency ratio 
targets for FY2025 of 45% for a calorie supply basis, and 73% on a production value basis. To 
achieve these targets, the Japanese government implements: (1) promoting consumption of 
domestic agricultural products both in the domestic and foreign markets, (2)  encouraging 
agricultural production that is more responsive to consumers ' needs, and (3) supporting core 
farmers, and other related measures based on the Basic Plan. Through these policy measures, 
demand for Japanese agricultural products is expected to e xpand, and the Japanese agricultural 
sector is expected to be able to meet the diverse demand by agricultural production that is more 
responsive to consumers ' needs.  
 
Page 91, paragraph 4.10 and page 93, paragraph 4.24 : The Secretariat 's Report states "the  
Agricultural Land Act (last amended in 2015 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 Secretariat 's Report also states that "Legislation 
to establish a regional government -supported institution in each prefecture to promote farmland 
consolidation was promulgated in December 2013 and entered into force in March 2014." Please 
explain how these measures relat e to one another and provide further detail as to the overall 
objective.  
 
RESPONSE  
The Farmland Act, a general law on farmland, regulates farmland trading, in order to promote 
effective use of farmland.  
 The legislation ,which establishes a regional gover nment -supported institution in each prefecture 
(Public Corporations for Farmland Consolidation to Core Farmers through Renting and Subleasing, 
also known as "farmland banks"), aims at promoting farmland consolidation for business farmers 
and enhancing agri cultural productivities. The legislation stipulates the following activities of 
farmland banks:  
1) renting and managing farmland:  
2) developing farmland conditions if necessary: and  
subleasing farmland to business farmers in a consolidated form.  
 
Pages 91 -92, pa ragraph 4.12 and page 96, paragraph 4.41 : The Secretariat 's Report states "The 
Japan Dairy Council also administers voluntary production restriction programmes for milk. 
Farmers are not obliged to participate in the se programmes, but most do so. " The Repor t goes on 
to state "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 compensa tes producers of milk for processing whenever WT/TPR/M/351/Add.1  
 
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  prices fall below the average for the previous three years." Based on this, please reply to the 
following:  
 
1. Describe how the production restriction program (also referred to as the voluntary supply 
control syst em for milk) operates and is funded, including whether there is any Government 
involvement directly or indirectly.  
 
 
RESPONSE  
The voluntary planned production is operated by JDC, based on supply and demand estimations 
without the involvement of the Japane se government. Under this operation, milk producers 
produce raw milk on the basis of the target quantity, which is indicated by JDC.  
Regarding the fund, please refer to the answer to the next question.  
 
2. Provide further details as the Government of Japan 's role in the Japan Dairy Council with 
regards to the price stabilization fund, including any stipulations set by the Government as to how 
the money may be used.  
 
RESPONSE  
The fund is contributed to by both milk producers and the Government of Japan, and whe n the 
prices for milk for processing fall below the average for the previous three years, it is executed.  
 
3. In reviewing Japan 's most recent domestic support notific ation (G/AG/N/JPN/191) for 
2010-2012, please indicate if and where the price stabilization f und outlays are notified.  
 
RESPONSE  
The price stabilization fund outlays are notified as an aggregate measurement in support of milk.  
 
4.1.2.2 Trade Policies  
Page 92, paragraph 4.16 : The Secretariat 's Report states that from FY2007 to FY2014, tariff quota 
fill rates for "skimmed milk", "prepared whey (for infant formulas)", and "butter and butter oil" 
were consistently below 40%. Please clarify whether Japan has any plans to address and rectify 
the under fill rates. Please also provide the fill rate for "sk immed milk", "prepared whey (for infant 
formulas)", and "butter and butter oil" for FY2015.  
 
RESPONSE  
Some quotas, such as "skimmed milk  powder for other purposes", "prepared whey (for infant 
formulas)", and "butter and butter oil", have been unfulfilled a s the domestic needs related to 
these quotas have not been increasing.  
Concerning unused quotas, a scheme for reallocation has already been implemented.  
The notification (MA: 2) to the Committee on Agriculture for FY2015 is now in progress.  
 
Page 93, para graph 4.20 : The Secretariat 's Report states that Japan makes an annual 
commitment of food assistance and provides funds for purc hasing products such as 
162,546  tonnes of rice and 99,612 tonnes of other products in FY2013. Please clarify whether the 
rice an d other products purchased using Japanese f ood aid were produced in Japan. Also, please 
identify what portion of the rice was originally imported under the tariff quota.  
 
RESPONSE  
The rice and other products purchased using Japanese food aid were produced in both Japan and 
other countries. The portion of the rice originally imported under the tariff quota of the food aid in 
FY2013 was 99,790 tonnes.  
 
4.1.2.3 Domestic Support  
4.1.2.3.2 Rice  
Page 94, paragraph 4.30 : The Secretariat 's Report states that Japan plans to eliminate the 
production quotas by 2018 and that the Government began providing farmers with rice production 
targets within a certain range to encourage independent decision -making on production in the 
2015 crop year. Based on this information, pl ease reply to the following:  
 WT/TPR/M/351/Add.1  
 
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  1. Please explain how the phase out will occur.  For example, is it correct to understand that 
starting in 2015 producers will be given a production quota range that they must produce within 
that will be phased to completely free decision making in 2018?  
 
RESPONSE  
Your understanding is correct.  
 
2. With the elimination of quotas and production -limiting subsidies, please clarify whether 
Japan expects an expansion or contraction in production.  
 
 
RESPONSE  
Japan expects that rice farmers will be able to produce in response to demand with the rice policy 
reform.  
 
3. Please confirm what measures will remain in place or modified in 2018 and later, such as the 
direct payments program and the 2014 introduction of a high yielding rice variety subsi dy. Also, 
please confirm whether any new measures are intended to be introduced or phased in.  
 
RESPONSE  
Japan confirms that the direct payment for table rice will eventually be abolished from production 
in 2018  
 
4.1.2.3.6 Livestock Products  
Page 95 -96, pa ragraph 4.37 : The Secretariat 's Report states that a scheme similar to that of beef 
is used for pig meat when it comes to administering prices when prices fall below the standard 
stabilization price. Based on this, please reply to the following:  
 
1. The Unite d States understands that the stabilization program pays 80% of the loss on cattle 
and hog sales, for participating farmers.  Is this understanding correct, if not please provide 
additional details?  
 
RESPONSE  
The program stated in the secretariat 's report is the "Price stabilization system" for pig and beef, 
which is different from the stabilization program indicated by the U.S.  
 
2. Please elaborate on the program for pig meat.   
 
RESPONSE  
It seems that the stabilization program indicated by the U.S. is the "In come stabilization program 
for the cattle and pig sector" (MARUKIN program). The MARUKIN program covers up to 80% of the 
gap between the average production cost and the average carcass price, through the fund 
mutually contributed to by producers and govern ment. Cattle producer 's contribution accounts for 
25% of the fund for the cattle sector; and Pig producer 's contribution accounts for 50% of the fund 
for the pig sector.  
 
3. Please indicate whether any changes have been made to the program since Japan 's last 
domestic support notification for 2010 -2012 (G/AG/N/JPN/191) and, if so, how.  
 
RESPONSE  
The legal framework of the "Price stabilization system", stated in the secretariat 's report, will be 
abolished when TPP enters into force.  
 
4. When is Japan next scheduled  to consider changes or reforms to the measure and are any 
changes envisioned?  
 
RESPONSE  
For the MARUKIN program ("Income stabilization program for the cattle and pig sector"), the rate 
of support will be changed from 80% to 90% for both sectors, and the s hare of the producer 's 
contribution to the fund will be changed from 50% to 25% for the pig sector. These amendments 
will be implemented when the TPP agreement enters into force.  
 WT/TPR/M/351/Add.1  
 
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  4.1.2.3.7 Dairy  
Page 96, paragraph 4.41 : The Secretariat 's Report states tha t the Japan Dairy Council continues to 
operate a voluntary supply control system for liquid milk and a separated quota system for milk for 
processing. Please explain the role of the Agriculture and Livestock Industries Corporation (ALIC) 
in the administrat ion of the program to support manufacturing milk.   
 
RESPONSE  
ALIC is independent from the program of JDC. ALIC grants subsidies to milk producers according 
to the amount of milk for manufacturing use.  
 
Pages 96 -97, paragraph 4.42:  The Secretariat 's Report states that there was a shortage of butter 
supply in the Japanese market in 2014 and the Government decided to import butter in addition to 
the butter under Japan 's Current Access commitment. Did the Government import additional 
butter in 2015 and 2016?  
 
RESPONSE  
Japan decided to import 10,000 tonnes of butter, in addition to the butter under Japan 's Current 
Access commitment each in 2015 and 2016.  
 
4.6 Services  
4.6.1 Financial Services  
Page 107, box 4.1 : The Secretariat 's Report refers to Japan Post Bank a nd Japan Post Insurance in 
the Japan Post Group as "significant players in the financial services sector." In November 2015, 
Japan began the final phase of the privatization process with the sale of a first tranche of shares in 
JP Holdings and its two fina ncial subsidiaries, Japan Post Bank and Japan Post Insurance, with an 
initial public offering (IPO). What is the schedule for the next IPO? What are the plans to for 
ensuring a transparent process?  
 
RESPONSE  
The next PO (public offering) schedule for Japan  Post Bank and Japan Post Insurance is undecided 
at this time. (The sale of shares of Japan Post Bank and Japan Post Insurance is determined by the 
Group 's management policy of the Japan Post Group.)  
The sale of the shares of the Japan Post Bank and Japan Post Insurance will be conducted lawfully 
and fairly in accordance with relevant laws, such as the Financial Instruments and Exchange Act, 
and the rules of the Tokyo Stock Exchange.  
 
PART II: QUESTIONS ON THE GOVERNMENT REPORT (WT/TPR/G/351)  
 
2 TRADE AND I NVESTMENT POLICY  
2.3 FTA/EPAs  
Pages 6 -7, table 2.1 : Regarding the Thailand economic partnership agreement identified in the 
table, please provide additional detail on the activities or topics covered under the Sub -Committee 
on Small and Medium Enterprises.  
 
RESPONSE  
The meeting of the Sub -Committee on Small and Medium Enterprises (SMEs), under the 
Agreement between the Kingdom of Thailand and Japan for an EconomicPartnership, was held on 
May 2008.  
The meeting agenda covered cooperation frameworks, such as the strengthening of SME 
management, competitiveness and technological capability, exchanging information on SME 
policies on best practices, promotion of business collaboration and marketing development, and 
capacity building for SMEs  
 
2.4 Other Regional/B ilateral Arrangements  
2.4.3 Japan 's Bilateral Activities Outside of FTAs  
Page 10, paragraph 2.26 : Regarding the Japan -the Russian Federation  eight-point cooperation 
plan, please provide additional detail on the plans and mechanisms for (3) Fundamental expa nsion 
of medium -sized and small companies' exchange and cooperation, including which Japanese 
agencies are involved in this initiative. Are there particular sectors that are the focus of small and 
medium companies' exchange and cooperation?  
 WT/TPR/M/351/Add.1  
 
- 62 - 
 
  RESPONSE  
In Se ptember 2016, the Ministry of Economy, Trade and Industry of Japan and the Ministry of 
Economic Development of the Russian Federation concluded the Memorandum concerning the 
Creation of Platforms for Cooperation in the Field of Mid -ranking Companies and Sm all and Medium 
Enterprises.  
The platforms in Japan and the Russia n Federation  will establish working groups, when needed, 
concerning venture business financing, innovative business, food -related issues and other 
subjects, and hold seminars, business meeti ngs or other events, dispatch business missions, and 
support companies in providing financial services, information and knowhow, aiming to encourage 
SMEs in Japan and the Russia n Federation  to invest in and export to the partner country. In 
addition, the p latforms will strive to solve conflicts for SMEs that intend to  develop business in 
Japan and the R ussian Federation . 
The platform in Japan includes the Ministry of Economy, Trade and Industry, the Ministry of 
Foreign Affairs, the Ministry of Agriculture, Forestry and Fisheries, the Financial Services Agency, 
the Japan External Trade Organization, the Japan Association for Trade with the 
Russia n Federation  & NIS, the Organization for Small & Medium Enterprises and Regional 
Innovation, Japan Centers, local g overnments, and financial institutions etc.  
 
4 JAPAN 'S DOMESTIC POLICIES  
4.5 Competition Policy  
Page 17, paragraph 4.18 : The Government 's Report discusses the recent legislation to amend the 
Anti-Monopoly Act to provide for a commitment procedure to resol ve cases. Please identify when 
this provision will take effect.  
 
RESPONSE  
The Diet passed the TPP Amendment Bills (the Bill on the Development of Related Legislation 
Following the Conclusion of the Trans -Pacific Partnership Agreement), including the parti al 
amendment of the AMA to introduce a commitment procedure, in December, 2016. However, 
effective date of the bill is the date of entry into force of the TPP Agreement for Japan, and thus 
the partial amendment of the AMA will not enter into force until th e TPP enters into force.  
 
 
ADDITIONAL QUESTIONS  – UNITED STATES  
Question 1  
In 2002, Japan created a list of 46 food additives that would be subject to an expedited approval 
process. All have been approved with the exception of four, which the United States  understands 
Japan to be currently reviewing. Please identify what progress has been made to complete this 
review.  
 
RESPONSE  
The remaining four additives (Sodium Aluminium Phoshate, Acidic, Sodium Aluminium Silicate, 
Calcium Aluminium Silicate, and Carmin es) all contain aluminum. The Government of Japan is 
currently considering ways to reduce aluminum exposure from food additives, including those that 
have been designated in Japan, because high exposure level (especially infants aged one to six) in 
Japan m ay exceed JECFA PTWI (2 mg/kgbw/week). The Ministry of Health, Labour and Welfare 
(MHLW) will request risk assessments about these additives to the Food Safety Commission (FSC), 
as soon as the required information, such as standard of use and estimate expo sure, are ready, 
taking into account the recent international trend of Aluminum containing food additives.  
 
Question 2  
The Plywood and Lumber Stepped -Up Production Fund was established as part of a Japan 's FY2015 
supplemental budget, making approximately 2 9 billion yen available to improve the productivity of 
mills and to support up to 50 percent of the expense of projects to enhance forestry production 
and logistics systems. Please provide information regarding h ow much of the approximately 
29 billion yen has already been spent for this program.  
 
RESPONSE  
28.8 billion yen has already been spent for this program.  
 WT/TPR/M/351/Add.1  
 
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  Question 3  
Some insurance businesses run by cooperatives (kyosai) are regulated by their respective 
agencies of jurisdiction ( e.g., the Ministry of Agriculture, Forestry, and Fisheries (MAFF) or the 
Ministry of Health, Labor and Welfare (MHLW)) instead of by the Financial Services Agency (FSA). 
Please describe any steps taken to review this regulatory scheme and bring kyosai under the 
jurisdiction of the FSA.  
 
RESPONSE  
The kyosai activities conducted by cooperatives are based on a system of mutual aid associations, 
composed of members circumscribed by region or job category, which shall contribute premiums 
and utilize businesses between each other.  The kyosai activities are conducted as a part of wide 
range of reciprocal help activities (joint project, loan, welfare service) of broad members. 
Therefore, these activities are of a different nature from the profit -making insurance businesses 
that targe t the general public. Thus, it is not appropriate to apply the Insurance Business Law to 
kyosai providers as in the case with private insurers. These kyosai activities are subject to 
regulatory supervision by the competent authorities, within the confines of the relevant laws.  
 
 
REVISED ANSWER - UNITED STATES  
3.3.10.10 The 2015 IP Strategic Programmes  
Page 86, paragraph 3.215: The Secretariat's Report indicates that the "IP dispute resolution 
system is set to undergo some significant changes under the 2015 strategic plan." Please provide 
further details regarding the proposal that involves "reforming the compensation for damages to 
reflect the actual status of business."  
 
RESPONSE  
Please refer to the link below, Pages 66 －72 of the "IP Strategic Program 2016," which states the 
current situation and challenges as well as the measures for the future regarding the IP dispute 
resolution system, following "IP Strategic Program 2015."  
Concrete measures about comprehensive IP dis pute resolution system, including the compensation 
for damages, are now under review in the Japan Patent Office based on this Plan.  
IP strategic Program 2016: 
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf . 
 
 
ADDITIONAL REPLIES  - UNITED STATES  
Page 71, paragraph 3.168:  The Secretariat 's Report identifies the number, value, and the relative 
share of procurement awarded to foreign suppliers in Table 3.25 and Table 3.26.  Could Japan 
please explain:  
• How is the country of origin in formation collected in the contracting process?  
• How does Japan, for the purposes of reporting government procurement awards to foreign 
suppliers, determine the country of origin for goods and services?  
 
RESPONSE:  Under the voluntary measures, Japan's met hodology on the determination and 
estimation of the country of origin is the following.   
 
The country of origin of goods is determined based on the information provided by the suppliers. 
Such information includes countries of origin as indicated on the lab el attached to the procured 
goods and those described in the contract notes or other documents such as import invoices, 
producer's invoices and B/Ls.  The country of origin of services is determined based on the 
nationality of winning tenderers.  A company w hose foreign ownership is over 50% is regarded as a 
foreign business operator, and the nationality of the company determines the country of origin of 
services  
 
U.S. FOLLOW -UP 
In its response, Japan notes that the country of origin of services is determined  based on the 
nationality of the company, wherein foreign ownership over 50% is regarded as a foreign business.  
Please clarify how Japan would classify the country of origin of a locally -established subsidiary of a 
foreign company.  Would that be considered  as a Japanese -origin service or a foreign service?  
 WT/TPR/M/351/Add.1  
 
- 64 - 
 
  RESPONSE  
A locally -established subsidiary of a foreign company whose foreign ownership is over 50% is 
regarded as a foreign business operator, and the nationality of the company determines the 
country of  origin of services.  
 
 
8. EUROPEAN UNION  
Japan TPR  
EU Questions  
 
WT/TPR/S/351 – WTO Secretariat's Report  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
Box 3.1, page 31  
 
EU ques tion No 1  
Could Japan provide updated statistics on the participation by companies in the Authorised 
Economic Operator (AEO)/trusted trader system in Japan? In particular, the EU would be 
interested in information about SME participation in the programme.  
 
RESPONSE  
As of Feb 1st, 2017, the number of AEOs is as below. The number of SMEs accounts for over: 40% 
of certified AEOs . 
AEO exporters: 240  
AEO importers: 92  
AEO customs brokers: 128  
AEO warehouse operators: 142  
AEO logistics operators: 7  
Total: 609  
 
3.2.3 Export prohibitions, restrictions, and licensing  
Paragraph 3.64, page 43  
 
EU questions No 2 -3 
What are the criteria used and points examined by METI for approval of licences of agricultural, 
fishing and forestry related products? On what basis does MA FF give its consent for METI to grant 
a license and how do the roles of METI and MAFF differ in the licence granting process?  
 
RESPONSE  
METI examines the consistency between the contract regarding the export and the application, and 
it grants export licens es based on the Article 2 of the Export Trade Control Order, only after MAFF 
recognizes that the exports will not have a negative impact on the adjustment of domestic supply 
and demand, preservation of exhaustible natural resources etc.  
 
3.2.4 Export suppo rt and promotion  
Paragraph 3.74, p. 45 -46  
 
On 25th July 2016, JETRO announced that it has concluded a Memorandum of Understanding with 
'Sopexa Japon' on cooperation for export promotion of Japanese agricultural products.  
 
EU question No 4  
Could Japan  elaborate on the specific plans under this MoU?  
 
RESPONSE  
JETRO has not decided on any specific plan at this point.  
 WT/TPR/M/351/Add.1  
 
- 65 - 
 
  3.3 Measures affecting Production and Trade  
3.3.1 Taxation and tax incentives  
Table 3.8 Tax revenue, FY2011/15, page 46  
 
Besides being subject  to motor vehicle tonnage tax, passenger cars are also subject to the 
automobile tax, an annual tax which is commensurate to the volume of the engine size of the 
vehicle. A passenger car with a cylinder volume comprised between 660 and 1,000 cc is currentl y 
subject to a tax of Y 29,500 per year. Mini vehicles with an engine capacity below 660cc are 
currently subject to a kei -car tax of Y 10,800.  
 
EU question No 5  
Does Japan intend to further adapt its tax system and reduce such tax differential in the comi ng 
years?  
 
RESPONSE  
A Kei -car tax (including passenger kei -cars) was decided decided upon during the annual tax 
reform in fiscal year 2014. The decision was taken from the viewpoint of striking a balance 
between the tax burden of kei -cars and small cars un der 1,000 cc displacement, with a 
background of increasing in size and advancing functionalities of kei -cars. 
The Government of Japan considers that tax rates of (normal) cars and kei -cars should be 
examined, taking into consideration all the relevant fact ors, including performance, usage situation 
in local areas, tax burdens of tax payers, and environmental policies  
 
3.3.2 Subsidies and other assistance programmes  
Paragraph 3.85, page 49  
 
EU question No 6  
Could J apan provide the latest information on the tax incentives scheme for the next generation 
vehicles such as fuel cell vehicles, clarifying whether there has been any changes in the eligibility 
criteria during the period under review? The total budget of the scheme for 2017 is also of 
particular inter est.  
 
RESPONSE  
From the viewpoint of promoting automobiles with economical fuel consumption, tax reductions for 
eco-friendly cars, which reduce or exempt motor vehicle tonnage tax and automobile acquisition 
tax, will be extended until March (automobile ac quisition tax) and April (motor vehicle tonnage 
tax) 2019 respectively while revising the scope of eligible automobiles, as the current measures 
will expire in March and April 2017 respectively. There have been no changes in the eligibility of 
fuel-cell ve hicles and electric vehicles to be exempted from both taxes. The estimated revenue 
decrease for motor vehicle tonnage tax in FY2016 budget will be 73 billion yen and the actual 
revenue decrease for a utomobile acquisition tax in FY 2015 budget was162.2 billi on yen. (Those of 
FY2017 are under calculation)  
 Furthermore, a special tax incentive with respect to automobile tax and Kei -car tax given to the 
acquisition of a new vehicle with economical fuel consumption (this tax incentive is called "Green 
tax system (light taxation)") will be extended until March 2019 Fuel -cell vehicles and electric 
vehicles remain within the scope of reduced tax rate under "Green tax system (light taxation)". 
The actual revenue decrease in FY 2015 was 46.9 billion yen. (That of 2017 i s under calculation.)  
 
 
3.3.3 Competition policy and price controls  
3.3.3.3 Exemptions  
Paragraph 3.99, page 51  
 
According to the report, certain industries or business practices are exempted from the scope of 
the AMA, under certain conditions.  
 
EU questio n No 7  
Does Japan plan to eliminate exemptions from the Anti -Monopoly Act provided by the Insurance 
Business Act?  
 WT/TPR/M/351/Add.1  
 
- 66 - 
 
  RESPONSE  
At present, Japan has no specific plan to eliminate an antitrust exemption under Insurance 
Business Act.  
It has been clarified that exemptions from the Antimonopoly Act should, in principle, be abolished 
according to successive Cabinet Decisions, from the view point of promoting fair and free 
competition further in the national economy since 1994. In light of this, the Anti -Monopoly Ac t was 
amended three times (in 1997, 1999 and 2000) to disestablish exemptions and streamline 
procedures. As a result, the number of exemptions were reduced from 30 laws and 89 practices at 
the end of March 1996, to 17 laws and 24 practices at the end of Ja nuary 2017.  
 
Table 3.12, page 51  
Due to the on -going reform of Japanese Agricultural Cooperatives, some organisational and 
functional changes are expected to take place within the Cooperatives . 
 
EU question No 8  
Will there be any modifications or amendmen ts made to the Anti -Monopoly Act, reflecting the 
content of the reform in the future?  
 
RESPONSE  
 
As mentioned in the answer of Q7, at present, Japan has no specific plan to eliminate antitrust 
exemptions under the Agricultural Cooperative Act at present.  
 
3.3.4 Corporate governance  
Paragraph 3.110, page 56  
 
EU questions No 9 -10 
Could Japan provide the latest statistics on the number and share in total number of non -financial 
corporate pension funds which signed up to Japan 's Stewardship Code?  Are there any  measures 
planned to increase the Code 's acceptance by corporate pension funds?  
 
RESPONSE Q9  
As of December 27, 2016, there are 214 institutional investors who announced their acceptance of 
the Code , classified as follows;  
•Trust banks (Shintaku Ginko) : 7  
•Investment managers (Toshishintaku/Toshikomon Gaisha) : 152  
•Pension funds : 26  
•Insurance companies : 22  
•Others (service providers, etc.) : 7  
The number of corporate pension funds is 7 (including one non -financial corporate pension fund), 
and their sha re in total is 3%.  
 
RESPONSE Q10  
The Pension Fund Association and the Government of Japan  intend to hold meetings of the Council 
of Experts on the Stewardship Code. They currently discuss concrete measures to support the 
Code's acceptance of corporate pens ion funds.  
 
3.3.6 Standards and other technical requirements  
Paragraph 3.123, page 60 and 3.130, page 62  
 
According to the report, current the JAS act only covers Organic plants and Organic processed 
foods of organic plants.  
 
EU question No 11  
Could Japa n indicate its possible plan to extend the JAS to cover organic dairy and livestock and 
other categories of organic products ? 
 
RESPONSE  
Current JAS covers not only organic plants and organic processed foods  of plant origin, but also 
organic livestock produ cts, organic feeds and organic processed foods  of animal origin, such as 
dairy products.  
 WT/TPR/M/351/Add.1  
 
- 67 - 
 
  Paragraph 3.135, page 63  
 
According to the report, overseas manufacturers of electrical and consumer products may undergo 
conformity assessment and certification con ducted in foreign countries by foreign registered 
conformity assessment bodies. The government of Japan introduced in 2004 the Self -Verification 
of Conformity (SVC) which is only applicable to wired telecommunications terminals thus excluding 
for example r adio base stations for mobile networks.  
 
EU question No 12  
Could Japan indicate if it intends to expend the application of SVC to all equipment in the category 
of "Specified Radio Equipment"?  
 
RESPONSE  
The target devices for self -confirmation of technical regulations conformity, which is equal to 
"SVC", are limited only to a part of specified radio equipment that have few possibilities to cause 
harmful interference with other radio stations. Considering the current operating status of the 
technical regulati ons conformity certification, and construction type certification of specified radio 
equipment, MIC, the Government of Japan will conduct a study of characteristics and usage of 
specified radio equipment, and think properly whether it is possible to add so me devices to target 
devices for self -confirmation of technical regulations conformity.  
 
3.3.7 Sanitary and phytosanitary measures  
Paragraph 3.141, page 63  
 
Japan's SPS notifications sometimes lack relevant details of the intended legislative changes such  
as actual final wording of a new standard or exact testing methods may be missing.  
 
EU question No 13  
Could Japan explain how it intends to ensure full compliance with the notification requirements?  
 
RESPONSE  
Japan has notified its SPS measures in accord ance with the SPS Agreement and related decisions 
and recommendations. Furthermore, Japan has answered reasonable questions on the notifications 
from interested Members, through the SPS Enquiry Point. Japan will continue to proceed with its 
efforts for mor e explicit notifications.  
 
Paragraph 3.142, page 63  
 
The report states that, according to the a uthorities, SPS measures applied by Japan are based on 
the relevant international standards. However, according to the experience of EU exporters the 
Japanese f ood safety system is extremely stringent and EU exporters are often confronted with 
long and cumbersome approval procedures and excessive quarantine testing.  
 
EU question No 14  
What are Japan's plans to facilitate SPS import measures, notably as regards t he sometimes long 
and cumbersome approval procedures and the sometimes excessive quarantine testing required?  
 
RESPONSE  
SPS measures of Japan are in general based on relevant international standards or, where its 
measures do not conform to relevant interna tional standards, they are based on a scientific risk 
assessment, in accordance with the SPS Agreement, and Japan has appropriately carried out 
necessary domestic procedures for these SPS measures. Furthermore, with a view to harmonizing 
with relevant inte rnational standards, Japan reviews its measures where necessary and will 
continue to proceed with its efforts  
 
Paragraph 3.147, page 65  
 
According to the report, more than 800 pesticides and at least 800 food additives are approved for 
use. It is also repo rted that for the authorities it is very difficult to confirm whether all these 
substances comply with international standards.  
 WT/TPR/M/351/Add.1  
 
- 68 - 
 
  EU questions No 15 -16 
Does Japan plan to align more its food additive and pesticide standards with international 
standards? Wil l Japan accelerate the approval procedures in place for pesticides and food additives 
which are widely used around the world and considered safe?  
 
RESPONSE Q 15  
The Government of Japan takes into account the Codex standards whenever reviewing Maximum 
Resid ue Limits (MRLs) for agricultural chemicals and food additive standards, in accordance with 
Article 3.1 of the WTO SPS Agreement. Japan, when necessary, sets food standards different from 
Codex standards based on scientific evidence. For example, more rest rictive MRLs of pesticide in 
some commodities can be established to protect consumers ' health, if dietary exposure estimated 
from national consumption data is above health -based guidance value (e.g. ADI, ARfD). This 
measure is consistent with Article 3.3 o f the SPS Agreement.  
 
RESPONSE Q 16  
Japan takes several measures to accelerate the procedures for setting standards of pesticide 
residues and food additives, taking into account the Codex Standards.  
 
Regarding pesticide residues, the Ministry of Health, La bour and Welfare (MHLW) has made an 
effort to align with the Codex standards as much as possible whenever reviewing maximum 
residue limits (MRLs) in foods. MHLW can also consider setting import tolerances, if requests are 
made and the supporting data are p rovided (e.g. residue trials, GAP information). For your 
reference, MHLW is now considering setting a standard processing period for setting MRLs of 
pesticide residues for transparency.  
 
Regarding food additives, MHLW has set the standard processing period  as one year regarding the 
designation process of food additives, after receiving a notification on a result of risk assessment 
from the Food Safety Commission, and published it on 10 June 2016. In addition MHLW is 
considering strengthening the function of  the Food Additive Designation Consultation Center 
(FADCC) established in June 2014, which would include consultation by e -mail or telephone call in 
English.  
 
EU question No 17  
Does Japan intend to further align its definitions for "food additives" and for  "processing aids" with 
the definitions of the international standard setting body Codex Alimentarius?  
 
RESPONSE  
Basically, the Government of Japan understands its definition for "food additives" in Japan aligns 
with the definitions of the international st andard setting body Codex Alimentarius.  
As in Japan, "processing aids" falls under the category of food additives, the Government of Japan 
understands its definition for "processing aids" basically aligns with the definitions of the 
international standard  setting body Codex Alimentarius.  
 
Paragraph 3.148, page 65  
 
According to the report, Japan currently imposes import prohibitions on beef and poultry from 
various countries to prevent the spread of BSE and avian flu. It is also reported that Japan has 
allowed beef imports under certain conditions based on scientific review by the Food Safety 
Commission.  
 
EU question No 18  
When will Japan fully align it import requirements for beef and other bovine products with the OIE 
guidelines?  
 
RESPONSE  
The SPS Agreemen t requires that the sanitary or phytosanitary measures conducted by WTO 
Members are based on scientific principles. As for BSE regulations, the MHLW requests risk 
assessment to FSCJ taking into account the OIE evaluation.  
For raising further age restricti ons, based on the international standards regarding the beef from 
13 countries including the U.S., Canada, France and the Netherlands etc., the MHLW has already 
requested risk assessment from FSCJ. After consultation with FSCJ, the MHLW will call target 
countries for data necessary for risk assessment, and submit the collected data to FSCJ. After FSCJ WT/TPR/M/351/Add.1  
 
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  notifies the MHLW of the risk assessment result, the MHLW will consider reviewing the beef import 
requirement, based on the result of risk assessment.  
Since FSCJ conducts a risk assessment on the basis of the latest scientific findings of the time, the 
MHLW cannot prejudge a schedule and result of the risk assessments.  
 
EU question No 19  
How is Japan going to accelerate the lifting of the ban for poultry and o ther animal products from 
disease -free areas and to apply regionalisation in an effective manner so that trade can take place 
under the rules set down by the OIE and in such a way that the procedure to recognise 
regionalisation is applied without undue del ays (even years)?  
 
RESPONSE  
The Government of Japan conducts a risk assessment on the application of regionalization in case 
of the occurrence of avian influenza, based on " Standard Procedure for Approval for Import of 
Designated Items into Japan to be Qua rantined"  and "Standard Operating Procedures for Approval 
for Import of Designated Items into Japan to be quarantined (SOP) ", which was established in line 
with the OIE code.  
http://www.maff.go.jp/j/syouan/douei/eisei/sop/pdf/080401sop_eng.pdf . 
http://www. maff.go.jp/j/syouan/douei/eisei/sop/pdf/2010sop_en.pdf . 
Risk assessments can be conducted without undue delay, with necessary information provided by 
requesting countries  
 
3.3.8 Labelling and packaging requirements  
Paragraph 3.157, page 67  
 
There is no leg al definition of wine in Japan and the manufacturing processes stipulated in the new 
labelling standards differ starkly from oenological practices and standards set out in other 
countries' wine laws.  
 
EU question No 20  
Does Japan intend to stipulate sui g eneris wine legislation in the future?  
 
RESPONSE  
The new labeling standard regarding wine, based on the Act concerning Business Associations and 
Measures for Securing Revenue from the Liquor Tax, shall come into effect on 30, October 2018.  
Therefore, the G overnment of Japan is of the view that smooth implementation and sufficient 
establishment of the new labeling standards should come first, and then consideration on other 
measures should follow, taking into account all relevant issues at that time, includi ng the 
environment surrounding wine and wine industry.  
 
3.3.9 Government procurement  
Paragraph 3.161, page 67  
 
EU question No 21  
Could Japan provide further information on the amendment of the "operational procedures for 
government procurement" introduced  in May 2016 by explaining the rationale, the detailed 
description and expected result of the amendment as well as the web link to relevant revised 
Cabinet Order?  
 
RESPONSE  
In May 2016, the Cabinet Order Stipulating the Special Procedures for Government Pr ocurement of 
Products or Specified Services by a Local Public Entity (Cabinet Order  
No.372 of November 1, 1995) was revised  
(http://www.soumu.go.jp/main_content/000406466.pdf ). 
 
In accordance with Article 10 of the revised Cabinet Order, a procuring enti ty which is a local 
government listed in Annex 2 of GPA, when it awards a contract through general competitive 
bidding or selective bidding, may apply the "multiple bidding system" (in this TPR, referred to as 
the "multiple -award tendering", which is tenta tive translation) in case it procures excessive 
quantity of delivery of goods or supply of services. Under the multiple -award tendering, 
participants to the bidding are regarded as winners until desired quantities are met, provided that WT/TPR/M/351/Add.1  
 
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  respective bidding price is below original estimate. The entities listed in Annex 1 of GPA already 
adopted the multiple -award tendering.  
 
Paragraph 3.168 and table 3.25, page 71  
 
EU question No 22  
Could the Government of Japan provide figures on foreign participation in Japa n's government 
procurement by entities covered in the Japan's Annex II to the revised GPA?  
 
RESPONSE  
In accordance with Article XVI 4 of the revised GPA, Japan collects and reports to the GPA 
Committee statistics on the contracts covered by the revised GP A. The most updated statistics 
which cover contracts of 2014 does not include figures on foreign participation.  
 
Paragraph 3.169 and table 3.27, page 71  
 
EU question No 23  
Could Japan list the brief description of the ten largest awarded contracts covered  in the 45.9% 
share shown in Table 3.27 for "Railway vehicles and associated equipment", indicating which 
products were procured by which operators and from which suppliers?  
 
RESPONSE  
There is no data which publicly identifies the awarded contracts with th e bidding price.  
 
Paragraph 3.170 and table 3.29, page 72  
 
Table 3.29 indicates that the percentage of foreign suppliers ' tenders in open tendering procedures 
fell by 30% comparing to the previous year.  
 
EU question No 24  
Could Japan provide an explanati on for this drop?  
 
RESPONSE  
These figures reflect the results of tenders which were conducted in a transparent and impartial 
manner.  
 
3.3.10 Intellectual property rights  
3.3.10.1 Overview  
Table 3.31, page 74  
EU question No 25  
Could Japan elaborate on the definition of "agricultural chemical products" which will be covered 
under the Patent Act as amended in 2016 and in relation to an invention?  
 
RESPONSE  
"Agricultural chemicals" provided in Table 3.31 is related to Article 67 (2) of Patent Act, which 
provid es cases when duration of the patent right may be extended as follows.  
Patent Act  
Article 67 (2)  
Where there is a period during which the patented invention is unable to be worked because 
approvals prescribed by relevant Acts that are intended to ensure t he safely, etc. or any other 
disposition designated by Cabinet Order as requiring considerable time for the proper execution of 
the disposition in light of the purpose, procedures, etc., of such a disposition is necessary to obtain 
for the working of the p atented invention, the duration of the patent right may be extended, upon 
the filing of a request for the registration of extension of the duration, by a period not exceeding 5 
years.  
The dispositions designated by Cabinet Order under Article 67(2) of the Patent Act includes 
registration of agricultural chemicals. The definition of "Agricultural Chemicals" is provided in 
"Agricultural Chemicals Control Act" as follows.  
Agricultural Chemicals Control Act   
Article 1 -2 
1. For the purpose of this Act, the term "Agricultural chemicals" shall mean fungicides, 
insecticides, and other substances used to control fungi, nematodes, mites, insects, and rodents or WT/TPR/M/351/Add.1  
 
- 71 - 
 
  other plants and animals, or viruses (hereinafter generically called "diseases and insect pests") 
that may d amage crops (including trees and agricultural and forestry products, and hereinafter 
called "Crops, etc."), and also refers to other substances (including those, specified by government 
ordinances, that are used as raw materials or materials to control the  diseases and insects pests) 
and agents such as growth accelerators and germination suppressors, etc. used to promote or 
suppress the physiological functions of crops, etc.  
2. Under this Act, natural enemies used as a means of the biological pest control r eferred to in the 
previous Paragraph shall also be regarded as "agricultural chemicals."  
 
3.3.10.5 Trademarks  
Page 80  
 
EU question No 26  
Could Japan provide a breakdown of approved trademarks by item and by country, following the 
entry into force in 2015 of the amendment, which allows the expansion of the scope of protection, 
by adding non -traditional trademarks such as "colour" and "sound"?  
 
RESPONSE  
The number of approved non -traditional trademarks in Japan by item of trademark is as follows 
(as of the end of January 2017) .  
(1) Number of the decisions of registration on applications for non -traditional trademarks by item 
of trademark  
 
Hologram  Position  Sound  Color  Motion  Total  
9 23 120 0 69 221 
 
(2) The number of approved non -traditional trademarks in  Japan by country of origin of the 
applicants and by item of trademark is indicated on the table in the accompanying sheet (as of the 
end of January 2017).  
 
3.3.10.6 Geographical indications  
Paragraphs 3.191 and 3.196 pages 81 -82 
 
According to point 3.191 "The new law for protecting geographical indications (Act on Protection of 
the Names of Specific Agricultural, Forestry and Fishery Products and Foodstuffs) came into force 
in June 2015 and it applies only to GIs of foods, beverages, and agricultural and m arine products. 
In addition, Point 3.196 states that "Registration of GIs for alcoholic beverages is under the 
responsibility of the Commissioner of the National Tax Agency which designates GIs in accordance 
with the Indicating Standards Concerning Geograp hical Indications for Liquor under the Act 
Concerning Liquor Business Associations and Measures for Securing Revenue from Liquor Tax".  
 
EU question No 27  
Concerning geographical indications, could Japan provide information on any differences (in 
applicati on procedure, opposition, cancellation, etc.) between the legal instruments referred to in 
paragraphs 3.191 and 3.196 covering foods, beverages and marine products and wines and 
spirits?  
 
RESPONSE  
In order to be protected as  GI of agricultural, forestry an d fishery products and foodstuffs, a group 
of producers needs to submit an application for GI registration to Ministry of Agriculture, Forestry 
and Fisheries of Japan (MAFF). MAFF will examine the application, and will register the product if it 
meets the requirements as GI.  Interested persons may submit a written opinion for GI products 
proposed to be registered within three months from the date of the publication for opposition. 
Additionally, MAFF may cancel the protection of registered GI products if the y do not meet the 
criteria for the GI. For more information, please refer to the link below.  
http://www.maff.go.jp/e/policies/intel/gi_act/index.html  
In order to be protected as GI of alcoholic beverages, it is necessary to be designated by the 
commission er of National Tax Agency (NTA). For that designation, precise information about 
respective GIs in Japanese should be submitted for the NTA 's consideration. NTA will examine that 
information whether if it meets all the requirements as GI,  and then have a p eriod for public 
comment before the final decision. The commissioner of NTA may cancel the protections of 
designated GIs of alcoholic beverages if they do not meet the criteria for the GI.  WT/TPR/M/351/Add.1  
 
- 72 - 
 
  In 2015, Japan notified to the WTO TBT its draft notice on establis hing standards concerning 
protection of GI of alcoholic beverages (G/TBT/N/JPN/495 refers).  
 
EU question No 28  
Could Japan confirm that its domestic scheme allows direct registration for foreign GIs? The EU is 
interested to know, in particular, whether th e procedure for getting the protection in Japan may 
differ according to the origin of the GIs.  
 
RESPONSE  
Foreign GIs (same as Japan 's domestic GIs) for alcoholic beverages are eligible for designation by 
the commissioner of the National Tax Agency (NTA). There is no difference between domestic and 
foreign GIs in terms of this designation procedure.  
 
3.3.10.8 Enforcement  
Paragraphs 3.208 and 3.209, page 84  
 
According to the report, Japan Customs is responsible for border enforcement on importation, 
exportat ion and transit of infringing goods and right holders may lodge an application with 
customs to suspend the release of goods suspected of infringing IPRs. However, the draft does not 
refer to GI enforcement by the national customs.  
 
EU question No 29  
Could Japan explain the way it enforces GI rights at the borders and on the domestic market, of 
both national and foreign GI rights?  
 
RESPONSE  
In order to enforce protection of both national and foreign GI rights, National Tax Agency (NTA) for 
GI on alcoholic b everages and Ministry of Agriculture, Forestry and Fisheries (MAFF) for GI on 
agricultural, forestry and fishery products and foodstuffs (hereinafter "foodstuffs GI")  take 
appropriate administrative measures in accordance with respective domestic legislati on.  
For example, NTA enforces  the protection of GIs for alcoholic beverages based on the Act 
concerning Business Associations and Measures for Securing Revenue from the Liquor Tax, 
including the enforcement at the border in close cooperation with Japan cu stoms. Upon violation of 
the important criteria, each violator will be instructed to comply with the law, and if such 
instruction is not followed, orders follow and then penalties will be imposed if such orders are not 
complied with.  
MAFF may issue an orde r to remove the unlawful indication of foodstuffs GI, and when they do not 
comply with such order, penalties will be imposed. MAFF  also may take appropriate measures by 
preventing importers from release of  unlawful use of foodstuffs GI into domestic market . 
 
EU question No 30  
Could Japan clarify whether ex officio protection mentioned in paragraph 3.208 extends to GIs as 
well? 
 
RESPONSE  
Apart from ex officio  protection mentioned in paragraph 3.208, NTA, in close cooperation with 
Japan Customs, enforces  the protection of GIs for alcoholic beverages at the border  based on the 
Act concerning Business Associations and Measures for Securing Revenue from the Liquor Tax.  
 
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2.2 Trade policies  
Paragraphs 4.13 an d 4.16, page 92  
 
Despite the low production and as stated in the report, Japan continues to maintain high import 
barriers and increasing its domestic production at high price levels; furthermore, the fill rates for 
certain import quota remained quite low.  
 
EU question No 31  
Could Japan set out the reasons for the low import quota fill rate (below 40%) for "skimmed milk", 
"prepared whey (for infant formula)" and "butter and butter oil", as referred to under point 4.16? 
How does Japan intend to address this l ow level of imports of dairy products?  WT/TPR/M/351/Add.1  
 
- 73 - 
 
  RESPONSE  
For some quotas, such as "skimmed milk  powder for other purposes", "prepared whey (for infant 
formulas)", and "butter and butter oil", these quotas have been unfulfilled as domestic needs 
related to these quo tas have not been increasing.  
Concerning unused quotas, a scheme of reallocation has already been implemented  
 
4.2 Fisheries  
4.2.2 Policy  
Paragraph 4.52, page 99  
 
EU question No 32  
Could Japan provide the latest available information regarding imports und er the fisheries quotas it 
operates? In particular, the EU would like to ask Japan to provide the in -quota imports for species 
covered, announced quota amounts, total amounts imported under the quota and major countries 
of origin.  
 
RESPONSE  
Please refer t o the following chart  
 
quota  unit amount of import 
quota announced 
in 2015  amount of 
import in 2015  major countries / areas  
of origin  
Cod MT 72,700  24,909  U.S.A., the Russian Federation  
Walleye 
pollack  MT 1,027,000  124,854  U.S.A., the Russian Federatio n 
Roes of cod  MT 98,326  41,906  the Russian Federation, U.S.A.  
Horsemackere
l MT 125,000  23,766  Norway, Netherland  
Mackerel  MT 227,000  72,419  Norway, U.K.  
Pacific / 
Atlantic  
herring  MT 92,000 / 65,000  29,241  U.S.A., the Russian Federation/ 
Norway, Icelan d 
Sardine  MT 50,800  350 U.S.A., Viet Nam  
Cuttle -fish 
and squid  
(excluding 
"Mongo ika")  MT 74,950  78,278  China, Thailand  
Dried squid  MT 4,500  70 Thailand, China  
Scallops  MT 5,720  329 China  
Dried green 
laver / 
Monostroma 
nitidum  MT 130 130 Korea, Rep. of; China  
Kelp and its 
food 
preparations  MT 3,560  2,002  China;  Korea, Rep. of  
Yellow tail / 
Saury / 
Adductors of 
shell-fish / 
Niboshi (small 
boiled and 
dried fish for 
seasoning), 
etc. US$ 
thousand  71,400  46,843  Korea,  Rep. of;  China;  the Separate 
Customs  Territory of Taiwan, Penghu, 
Kinmen and Matsu  
Laver and its 
food 
preparations  million 
sheet  1,985  969 Korea,  Rep. of;  China;  Thailand  
Notes: Amount of import may exceed the amount of the import quota because import quota allocated to 
importe rs can be carried over to and used in the succeeding years with rational reasons.  
 
4.2.2.1 Stock management  
Page 100  
 
EU question No 33  
Does Japan operate an obligatory catch documentation system for all catches?  
 WT/TPR/M/351/Add.1  
 
- 74 - 
 
  RESPONSE  
Submission of a catch report to  each authority is an obligation for operators of all  fisheries 
managed by the Minister of Agriculture, Forestry and Fisheries and major fisheries managed by the 
prefectural governors. While submission of a catch report is not necessarily an obligation for  
operators of small scale fisheries, almost all of their catches are landed at local markets operated 
by fisheries cooperatives and information on catches is collected.  
 
EU questions No 34 -35 
How does Japan assure that its prefectures do not exceed their a nnual allocated amounts? Japan is 
using voluntary resource management as part of its stock management methods. Is voluntary 
restraint used in case that allocated amounts are exceeded and is it deemed efficient?  
 
RESPONSE  
Legislation stipulates that the pr efectural governors manage their own allocation. More specifically, 
the prefectural governors receive periodical reports on catch amount from fishery operators. When 
the total amount of catches approaches the allocated TAC, the prefectural governors order fishery 
operators to stop fishing.  
Regarding voluntary resource management, fisheries cooperatives, or groups of fishers, develop a 
total management plan, including input controls (e.g. regulations on fishing season or fishing 
areas) and technical regulat ions, for sustainable use of fisheries resources. Official management 
(including the management of TAC) and voluntary management complement each other, and 
proper resource management is implemented.  
 
4.4. Mining and Energy  
4.4.2 Primary energy  
Paragraph 4. 64, page 102  
 
on the occasion of the Japan TPR 2015, Japan informed Members that on 1 January 2014 a 
subcommittee established by METI completed a report indicating the direction of reforms, including 
steps for full liberalisation of the gas market.  
 
EU question No 36  
Could Japan describe what actions have taken place so far and what is in the pipeline for the 
reform of the gas sector?  
 
RESPONSE  
The Government of Japan formulated a mechanism under which it may order negotiations and 
determine the disputes  on connecting pipelines. And, in order to enhance neutrality and 
transparency, distribution sector, conducting business lager than a certain scale, has to be 
unbundled from other sectors in 2022.  
Japan is highly dependent on imports for all its fossil fue ls; this has a bearing on its long -term 
energy mix strategy. This strategy is detailed in the 4th Strategic Energy Plan of Japan, published 
in April 2014 under the framework of the Basic Law on Energy Policy of 2002 (Act No. 71).  
 
EU question No 37  
In the  context of a high dependence on imported fossil fuels and of the need for high investments 
to increase the safety of nuclear power, in what manner does Japan intend in the future to ensure 
the highest degree of energy self -sufficiency?  
 
RESPONSE  
In July 2 015, the government of Japan approved the Long -term Energy Supply and Demand 
Outlook. In the outlook, the goal is to improve the self -sufficiency rate to a level higher than 
before the Great East Japan Earthquake (approx. 25%) through energy efficiency and  
conservation, introducing renewable energy as much as possible, improving the efficiency of 
thermal power generation, and the restart of the nuclear power plants, in the case that the Nuclear 
Regulation Authority confirms the conformity of them with the n ew regulatory requirements.  
 WT/TPR/M/351/Add.1  
 
- 75 - 
 
  4.4.3 Electricity  
Paragraph 4.75, page 106  
 
EU question No 38  
Could Japan provide information on the recent developments of the Feed -in-tariff scheme including 
the change in tariff rates?  
 
RESPONSE  
The Government of Japan alw ays provides information on recents development in the Japanese 
Feed-in-tariff scheme, and the change of its tariff all over the world. The Ministry of Economy 
Trade, and Industry publishes English news releases every time when the Feed -in-tariff system of  
Japan is revised. Moreover, the tariff has been revised and published every year in the news 
release in English since 2012, the beginning of the FIT system.  
 
EU question No 39  
Could Japan provide information on the state of play of the restart of nuclear power plants, and 
clarify the decision making system on the restart of nuclear power plants in Japan?  
 
RESPONSE  
The Federation of Electric Power Companies of Japan (FEPC) provides information about status of 
nuclear power plants at the following website:  
http://www.fepc.or.jp/english/nuclear/power_generation/plants/index.html  
Before the restart of nuclear power plants,  the electric companies apply for a review of compliance 
with the new regulatory requirements, and the Nuclear Regulation Authority (NRA) jud ges whether 
nuclear power plants meet the requirements.  
In the case that the NRA confirms the conformity of nuclear power plants with the new regulatory 
requirements, the Government of Japan follows NRA 's judgment and proceeds with the restart of 
the nucle ar power plants. In that case, the Government of Japan makes best efforts to obtain the 
understanding and cooperation of the host municipalities and other relevant parties.  
 
4.6 Services  
4.6.1 Financial services  
Paragraph 4.79, page 106  
 
EU question No 4 0 
Could Japan provide the cumulative market share of the four largest mutual cooperatives of Japan 
in life and non -life insurance?  
 
RESPONSE  
The government of Japan does not have such informa tion. For your reference, in FY 2015, total 
Assets of life and no n-life insurance companies, and "kyosai kumiai", are as follows:  
Life insurance: ¥367.1 trillion.  
Non-life insurance: ¥31.4 trillion  
"kyosai kumiai": ¥63.9 trillion (amount of major 6,464 associations, source: JapanCooperative 
Insurance Association Incorpo rated (JCIA))  
Paragraph 4.87, page 109  
 
The report describes the amendments of the 1947 Banking Act and, in particular, it describes how 
the licensing standards have been clarified and complemented by the amendment.  
 
EU questions No 41 -42 
Could Japan exp lain whether the licensing standards applicable to foreign bank branches described 
in this paragraph - such as the requirement for officers and employees of foreign bank branches to 
have sufficient knowledge and experience or the need for appropriate metho ds of business  to 
protect depositors and the maintenance of the stability of the financial system - are identical or 
equivalent to those applicable  to domestic banks in Japan? If not the case, could Japan explain in 
which way they are different?  
 
RESPONSE  
The Licensing standards for domestic banks are prescribed in the Banking Act (Article 4(2)(ii)), 
and the Ordinance for Enforcement of the Banking Act (Article 1 -8(3)), that are equivalent to the 
ones for foreign banks. Moreover, the shareholders of domesti c banks are subject to strict WT/TPR/M/351/Add.1  
 
- 76 - 
 
  screening procedures prescribed in the Comprehensive Guidelines for Supervision of Major Banks, 
etc. 
 
Paragraph 4.89, page 109  
 
EU question No 43  
Could Japan provide information on the amount of deposits at foreign bank branc hes and the top 
10 foreign bank branches in terms of the amount of deposits held?  
 
RESPONSE  
The amount of deposits at foreign bank branches as of September 2016 is 8.7 trillion yen. The top 
10 branches are as follows:  
 
 Branches  The amount of deposits  
(million yen)  
１ Crédit Agricole Corporate and Investment Bank  1,107,920  
２ BNP PARIBAS  1,101,439  
３ INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED  968,059  
４ Australia and New Zealand Banking Group Limited  930,529  
５ Standard Chartered Bank  568,907  
６ The Ho ngkong and Shanghai Banking Corporation Limited  463,544  
７ UBS AG  407,525  
８ Société Générale  402,782  
９ CREDIT SUISSE AG  394,656  
10 BANK OF CHINA LIMITED  365,860  
 
4.6.2 Telecommunications   
Paragraph 4.94 and box 4.2, pages 110 -111  
 
The Ministry of In ternal Affairs and Communications (MIC) is the government agency primarily 
responsible for telecommunications policy and legislation, and for regulating the sector. In 
occasion of the previous review (2015 TPR), Japan replied to EU questions that MIC is th e "legally 
and structurally independent regulatory body". The EU and its industry in Japan consider that it 
would be good practice to have an independent regulator reporting directly to the Japanese 
Parliament. This would ensure a decision -making process t hat is objective, transparent and 
accountable. Consequently the EU would like to reiterate its question.  
 
EU questions No 44 -45 
Could Japan explain the measures it has taken to ensure independence of the regulatory function 
of MIC from the policy setting f unctions of MIC? How can this independence be ensured knowing 
that the Japanese government has a 33.3% stake in NTT as showed in box 4.2 of the report?  
 
RESPONSE  
What "the Ministry of Internal Affairs and Communications (MIC) is the legally and structural ly 
independent regulatory body" intends to refer to is that "the regulatory body is separate from, and 
not accountable to, any supplier of basic telecommunications services.", as stipulated in Article 5 
of the Telecommunications Reference Paper of the Four th Protocol to the GATS, and not the 
separation of regulatory functions from policy setting functions.  
With regard to ensuring the independence of regulatory functions from policy setting functions, 
the Constitution of Japan authorizes the Cabinet as the b ody of administrative power, provides for 
a parliamentary cabinet system and regulates each minister being responsible for administrative 
executive of their areas. In the field of telecommunication, because of the rapid technological 
innovation, the Govern ment of Japan is needed to carry out administration based on the state 's 
strategy for maintaining international competitiveness. Hence, the Government of Japan thinks the 
system is appropriate that ministers take responsibility and execute administration r apidly through 
the ultimately single -person mechanism in which the ministry can realize flexible, united and 
comprehensive administration.  
The regulations in the field of telecommunication are implemented with transparency and 
predictability based on the s tipulated rules of related regulations (such as the Telecommunication 
Business Law and the Radio Law). Regarding NTT, the minister executing administration of 
telecommunication is different from the one having the stock.  
 WT/TPR/M/351/Add.1  
 
- 77 - 
 
  Paragraph 4.96, page 112  
 
Accordi ng to the report, the Telecom Business Act was amended in May 2015 so as to promote fair 
competition and encourage the entry of new mobile virtual network operators (MVNO).  
 
EU question No 46  
Could Japan indicate how MVNO's uptake is going on in Japan? How  many of these MVNOs in 
Japan are foreign enterprises or have foreign investments?  
 
RESPONSE  
The number of subscribers of MVNOs was 14.27 million at the end of September 2016 (up by 
33.0% from the year -earlier month), and there are a total of 611 MVNOs. Th ough we do not 
compile statistics on the number of foreign MVNOs, by the Telecommunication Business Law, there 
is no regulation on the entry of foreign companies, including MVNOs, into the Japanese 
telecommunication market, and the same regulations as on J apanese companies are applied to 
their entry. The amendment of the Telecommunication Business Law in May 2015 developed rules 
on interconnection with the mobile telecom networks between major suppliers in order to enable 
MVNOs to rapidly develop their busi ness and promote competition in the mobile telecom market.  
 
4.6.4 Health -related services  
4.6.4.2 Services provided by midwives, nurses, physiotherapists and paramedical 
personnel  
Paragraph 4.144, page 126  
 
EU question No 47  
Could Japan explain the recen t changes to the Technical Intern Training Program and their 
implication for foreign nurses and/or care workers?  
 
RESPONSE  
1) The "Act on Proper Technical Intern Training and Protection of Technical Intern Trainees" passed 
by the Diet on November 18th , 20 16, and was promulgated on November 28th, 2016. The Act will 
come into effect on the day specified by Cabinet Order, within a period not exceeding one year 
from the date of promulgation.  
The contents of this Act include introduction of a system to accredi t technical intern training plans, 
which must be made for each technical intern trainees, and to license supervising organizations, 
provision of counseling and supporting for technical intern trainees, conduction of On -Site 
Inspection against supervising o rganizations and implementing organizations, establishment of the 
Organization for Technical Intern Training which will conduct above mentioned tasks, etc.  
2) The "Long -term care 'Kaigo '" will be added to the job categories under the Technical Intern 
Training Program  (TITP), simultaneously with the enforcement of the New system for the TITP.  
As Japan is the country rapidly aging much more than other countries, and has coped with the 
diversification and advancement of needs in long -term care, for example, t he increase in the 
number of elderly persons with dementia, some countries attempt to incorporate correspondingly 
such long -term care skills, matured in the unique Japanese environment. Under such 
circumstances, transferring long -term care skills to develo ping countries is in line with the 
objectives of the program and internationally meaningful . 
 
WT/TPR/G/351 – Japan's Report  
1 TRADE AND ECONOMIC ENVIRONMENT  
1.3 Trends in Foreign Direct Investment  
Page 4  
 
In 2015, Outward FDI to Europe decreased by 43.2% t o ¥4,195.1 billion and the inward FDI 
decreased from all regions.  
 
EU question No 48  
The EU would like to know what are, according to Japan, the main reasons for the decrease of 
Outward FDI to the EU, and whether Japan is planning to adopt any measures in  order to reverse 
the current trend.  
 WT/TPR/M/351/Add.1  
 
- 78 - 
 
  RESPONSE  
According to Japan 's BoP statistics (please see the table below), outward FDI from Japan to Europe 
demonstrated an upward trend over the past 2 years, since 2014C.Y. The data indicates that the 
amount of FDI to Europe increased by 43.2% in 2015C.Y.  
 
 (NOTE) ①(P) shows preliminary figures.Totals may not add due to rounding.
② Certain figures from January 2014 up to September 2015 are revised as of April 8, 2016.
対外直接投資
Direct Investment Assets
欧州
Europe
実行 回収 ネット
Execution Withdrawal Net ％
（暦年）
(Annual figures)
2005 9,015
2006 21,423 137.6
2007 24,882 16.1
2008 23,551 -5.3 
2009 16,680 -29.2 
2010 12,781 -23.4 
2011 31,437 146.0
2012 24,748 -21.3 
2013 31,596 27.7
平成26年 2014C.Y. 387,570 358,277 29,293 -7.3 
平成27年 2015C.Y. 269,749 227,798 41,951 43.2
平成28年（P） 2016C.Y.(P) 366,305 288,527 77,778 85.4
 
 
EU question No 49  
As the FDI flow to Japan drastically decreased, does Japan plan to adopt any measures to attract 
foreign investors?  
 
RESPONSE  
The Government of Japan is implementing regulatory reforms in fie lds such as energy, healthcare 
and agriculture, and also simplification of administrative procedures for incorporation and status of 
residence, etc., which is related to foreign companies.  
 
2 TRADE AND INVESTMENT POLICY  
2.4.3 Japan's Bilateral activities o utside of FTAs  
Paragraph 2.21, page 9  
 
EU question No 50  
Should the TPP not enter into force in the immediate future, will Japan nevertheless implement the 
outcome of the parallel negotiations conducted with the US on non -tariff measures and on motor 
vehicle trade?  
 
RESPONSE  
Noting that the measures listed in the letters exchanged as an outcome of Japan -U.S. parallel 
negotiations are what were confirmed as efforts taken or to be taken voluntarily by Japan in the 
first place, the Government of Japan intends to continue to proceed with the preparation of the 
measures as appropriate  
 
 WT/TPR/M/351/Add.1  
 
- 79 - 
 
  4 JAPAN'S DOMESTIC POLICIES  
4.1 Abenomics  
Paragraph 4.1, page 13  
Reference is made to the third arrow of Abenomics.  
 
EU question No 51  
In the context of the third pillar of Aben omics and of the declining labour in productive age related 
to problems arising from the aging population (provision of family members with nursing care), 
what concrete steps will Japan take in the short and long term?  
 
RESPONSE  
In 2015, Prime Minister Abe  launched the nation 's efforts to tackle the issue of the declining birth 
rate and aging population with the targets of "the largest nominal GDP in post -war history of 600 
trillion yen," "a desirable birth rate of 1.8," and "no one forced to leave their jo bs for nursing care 
of elderlies." In June, 2016, "The Japan 's Plan for Dynamic Engagement of All Citizens," which 
includes specific measures to achieve these targets, was compiled. In order to promote related 
measures, deciding when to take what kind of s pecific measures, with respect to each topic with 
concrete deadlines and consistently reviewing them, the Government of Japan drafted the 
roadmaps for these measures. The detailed roadmaps are provided in the following websites.  
http://www.kantei.go.jp/jp /singi/ichiokusoukatsuyaku/pdf/plan2.pdf  
 
4.4 Agricultural Reform,  
Paragraph 4.15, page 16  
The Japanese authorities state that the government is committed to implement further reform with 
a view to enhancing the competitiveness of agriculture.  
 
EU questi on No 52  
What specific systematic and structural steps will be adopted by Japan in order to increase the 
efficiency and productivity of agriculture within the frame of the Agricultural Reform?  
 
RESPONSE  
A. The government revised "the Basic Plan for Food, Agr iculture and Rural Areas" in March 2015 
and "Japan Revitalization Strategy" in June 2016. Please see the links below for more 
information:  
(1) the Basic Plan for Food, Agriculture and Rural Areas  
http://www.maff.go.jp/e/policies/law_plan/attach/pdf/index -2.pdf 
(2) Abenomics is progressing  
http://www.japan.go.jp/abenomics/index.html . 
 
 
ADDITIONAL QUESTIONS  –EUROPEAN UNION  
- Ratification of ILO Conventions  
 
EU questions No 53  
Could Japan inform about its effort to pursue ratification of fundamental ILO Convent ions No 105 
on forced labour and No 111 on non -discrimination?  
 
RESPONSE  
The Government of Japan holds discussions on C.105 and C.111 at tripartite consultation meetings 
(members: the most representative employers ' organizations " KEIDANREN" and the most 
representative workers ' organizations " JTUC-RENGO"), and exchanges views with other social 
partners requesting conclusion of C.105 and C.111. Further study is needed, however, concerning 
the consistency between these two conventions and national laws.  
 
- Regul atory regime for licensing:  
 
EU question No 54  
Does Japan envisage simplifying the current licensing regime for insurance companies?  
 WT/TPR/M/351/Add.1  
 
- 80 - 
 
  RESPONSE  
The Financial Services Agency does not have any plan to simplify the current licensing regime 
prescribed in the I nsurance Business Act.  
 
Additional replies  
 
European Union  
 
Q1. Is the number of certifying organizations increasing and are efforts being made to increase 
their number? If so, what efforts are taken in order to increase the number?  
 
A. Under JIS Marking S ystem, any certification bodies including foreign certification bodies are able 
to be accredited as a conformity assessment body. Accredited conformity assessment body for JIS 
Mark must be compliant with ISO/IEC 17065. In order to raise awareness of JIS Ma rking System, 
relevant information is provided on the JISC website. The Government of Japan also participated in 
activities of International Accreditation Forum (IAF) and Pacific Accreditation Cooperation (PAC).  
 
Q2. Does Japan consider that the new labell ing standard could lead Japan to eventually join the 
OIV, thus recognising the scientific and technical expertise of the organisation?  
 
A. The Government of Japan established the new labelling standard regarding wine from the 
perspective of facilitating co nsumer choice in domestic market and raising international brand 
awareness for "Japan Wine ". With regard to joining the OIV, The Government of Japan is of the 
view that all relevant issues such as the actual merit and obligation brought by OIV should be 
taken into account.  
 
Q3. Could Japan explain the articulation/coexistence of the GI system with that of the "done in 
Japan / made by Japan / made of Japan"? In particular, why Japan did not consider promoting a 
GI system in defence of Japanese products which  guarantees not only the origin of the products 
but also the know -how that is linked to them?  
A. The Japanese GI system protects names of products when a given quality, reputation or other 
characteristics of the product is essentially attributable to its geographical origin, and also the 
names indicate the linkage between quality, reputation and other characteristics and the 
production place. Moreover, the Japan's GI Act requires GI producer groups to submit product 
specification and also "quality control plan" so as to assure the characteristics and maintain the 
quality of the products. Therefore, our GI system guarantees not only the origin of products but 
also the production process that complies with the specifications.   
 
Q4. Do you intend to set up a s ystem which can enhance transparency on awarded contracts?  
 
A. At this moment, there is no such plan as Japan considers that the current system provides 
sufficient transparency.  
 
 
9. MALAYSIA  
SECRETARIAT REPORT  
Page 11  
2.5 Investment Policy  
2.5.1 Outlook  
2.35. In the Japan Revitalization Strategy 2016 (decided by the Cabinet in June 2016), the 
Japanese Government stated that it "will also aim to increase the amount of inward FDI to ¥35 
trillion by 2020 (¥24.4 trillion at the end of 2015)".  
 
Question  
1. Malaysia seeks further deliberation on Japan Revitalization Strategy 2016 and specific areas 
including those of services that may be of interest for market opening.  
 
RESPONSE  
In addition to reforms to regulations in individual fields such as energy, healthcare  and agriculture, 
the Government of Japan aims to realize "the most business -friendly county in the world", and 
introduces a new methodology for regulatory and institutional reforms to promote regulatory WT/TPR/M/351/Add.1  
 
- 81 - 
 
  reforms, simplification of administrative procedures , and evolution of information technology in an 
integrated and unified manner from the entrepreneur 's perspective.  
 
Page 16  
4.4 Agricultural Reform  
 
4.13. In order to address challenges such as aging society and declining population, in March 2015 
the gov ernment revised "the Basic Plan for Food, Agriculture and Rural Areas", which consists of 
industrial policy and regional policy.  
4.14. Furthermore, the government established "the Plan for Empowering Export on Agriculture, 
Forestry and Fisheries" in May 2 016, in order to promote Japanese agricultural, forestry and 
fishery products, and food in the global market.  
 
Question  
2. Appreciate if Japan could further deliberate the plan, particularly to enhance participation on 
the global market.  
 
RESPONSE  
The new pl an was established to support agricultural, forestry, fishery and food businesses 
through several measures, for example:  
-consolidation of overseas market information and provision through JETRO (the Japan External 
Trade Organization);  
-enhance the consult ing and advice systems of JETRO and MAFF;  
-implement effective promotion events in collaboration with chefs and overseas Japanese 
restaurants;  
-improve domestic export -related procedures, such as the issuance procedures for various 
certificates; and  
-estab lish a system to guarantee the quality and special features of Japanese products to overseas 
consumers and businesses.  
In addition to the plan, country/region -specific and products specific export strategies were 
provided for private businesses, to proceed  their exports.  
 
Page 24  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
2.6. Japan actively participates in both the WTO's regular work and negotiations. According to the 
authorities, maintaining and strengthening the multilateral trading system under t he WTO has 
been one of the main pillars of Japan's external economic policy. As one of the major Members of 
the WTO, Japan is committed to supporting the system.  
2.7. Japan is a party to the Plurilateral Agreement on Government Procurement; in March 2014,  it 
accepted the Protocol Amending the WTO Agreement on Government Procurement adopted in 
March 2012 (Section 3.3.9). Japan is also a party to the Information Technology Agreement (ITA) 
and has actively participated in the ITA product expansion negotiation s (ITA II). Japan deposited 
an instrument of acceptan ce with the WTO on 1 June 2015.  
 
Question  
1. Are there any intention or forward looking for Japan to consider the other on -going 
plurilateral initiatives under the WTO?  
 
RESPONSE  
Japan intends to play a lea ding role to further promote free trade under the current situation of 
global economy, and thus thinks it is important to achieve a substantial result in the MC11, with 
the view to secure the credibility of the WTO. In this context, it is essential to resu me as early as 
possible the negotiation of TiSA, which Japan has strongly committed towards an agreement in 
principle by the end of 2016.  Similarly, Japan is strongly committed to conclude the negotiation of 
EGA as soon as possible. Japan would like Malays ia to positively consider participating in the EGA 
negotiation. We are ready to cooperate with Malaysia on this matter.  
 
 WT/TPR/M/351/Add.1  
 
- 82 - 
 
  ADDITIONAL REPLIES  - MALAYSIA  
Q1. With reference to the 2016 amendment of the Customs Law, could Japan explain in detail 
what the rati onale behind this measure is ?  
 
RESPONSE  
The risk of the leakage of Japanese companies ' technology is becoming serious, with the 
development of various factors, such as the advancement of information technology. Recently, 
large-scale leakages of technical information were revealed, which are perceived as symbolic 
incidents of the leakage of trade secrets. The type of leaked information includes: a major steel 
manufacturer 's manufacturing technology of high -functional steel plates and a leading electronics 
company 's technology of NAND -type flash memory.  
Against this background, the Unfair Competition Prevention Act was amended in July 2015 to 
regulate importation and exportation of goods infringing trade secrets.  
The Customs Law was amended in 2016 in accorda nce with the amendment of the Unfair 
Competition Prevention Act.  
Q2. How effective is the leniency system in the cartel detection in Japan and how many price -fixing 
cartels cases were charged under this leniency system?  
 
RESPONSE  
The leniency system facili tates detection and fact -finding of cartel cases during investigation of the 
JFTC, making it a powerful tool for collecting evidence. For example, from FY2011 to FY2015, the 
JFTC took legal measures against 68 cartel cases, and out of them, the leniency wa s applied to 51 
cases, which account for 75%. Also, from FY2011 to FY2015, there were 21 price -fixing cartel 
cases, and the leniency was applied to 16 cases, which constitutes 75%.  
 
Questions 3: Could Japan further explain under the new revision in 2014, w hat are the type of 
"other services " that being covered in the Government Procurement Agreement?  
 
RESPONSE  
The new revision to the GPA in 2014 added the types of "services " in the following table into the 
list of "services " covered under the GPA.  
 
CPC   
633 Repair services of personal and household goods  
642 Food serving services  
643 Beverage serving services  
83106～83108  Leasing or rental services concerning  agricultural machinery  and equipment without 
operator  
83203  Leasing or rental services concerning furniture and other household appliances  
83204  Leasing or rental services concerning pleasure and leisure equip ment 
83209  Leasing or rental services concerning other personal or  
household goods  
865 Management consulting services  
866 Services related to management consulting (except 86602 Arbitration and conciliation 
services)  
876 Packaging services  
8814 Services incidental to forestry and logging, including  forest management  
921 Primary education services  
922 Secondary education services  
923 Higher education services  
924 Adult education services  
9611 Motion picture and video tape production and distributi on  
services (except 96112 Motion picture or video tape production services)  
 
Q4. Can Japan please explain how the new energy efficiency standards that have been established 
meet the requirements in the WTO TBT agreement related to the use of internationa l standards?  
 
RESPONSE  
The Government of Japan has adapted the test methods for the energy efficiency on international 
standard (e.g. ISO, IEC etc.) to the Top Runner Program under the Act on the Rational Use of 
Energy. For example, in FY2015, IEC test met hod/procedure for electric refrigerators and electric 
freezers was adapted to the program and the international fuel efficiency test 
methods/procedures, called WLTP (Worldwide harmonized Light vehicles Test Procedure), have WT/TPR/M/351/Add.1  
 
- 83 - 
 
  been introduced into the test me thods for the energy efficiency for passenger vehicles and small 
freight vehicles since October 31, 2016.  
 
Q5. (First Part)  
Could Japan indicate whether there is any possibility of Japan 's authorities postponing the -
scheduled tax increase even further if t he economic impact continues to be less favourable than 
expected?  
 
RESPONSE  
In order to fulfill its responsibility to pass the social security system on to the next generation and 
secure the confidence in Japan from the market and from the international co mmunity, it is 
essential to raise the consumption tax rate to 10% in October 2019.  
At the same time, Japan has maintained the goal of fiscal consolidation target by FY2020, and 
needs to raise the consumption tax rate to achieve the target.  
The government will make every possible effort to ensure appropriate economic and fiscal 
management to securely implement the consumption tax rate hike to 10% in October 2019.  
 
Q6. Malaysia would appreciate if Japan could share what are the other companies that have 
potential to be notified in the future?  
 
RESPONSE  
At this juncture, the Government of Japan has no specific plan to notify additional state trading 
enterprises.  
 
Q7 Considering that Japan Tobacco Inc is the only company that manufactures tobacco in Japan, 
does the company receive any assistance from the Government of Japan in order to ensure 
sustainability of the company?  
 
RESPONSE  
Japan Tobacco Inc does not receive any assistance from the Government of Japan.  
 
Q8. Can the Government of Japan share with is of there are any future plans to divest its 
investment in Tokyo Metro Co. Ltd?  
 
RESPONSE  
The Government of Japan is not aware of the plan.  
 
Question 9. Can Japan provide an explanation on the implementation of the "multiple bidding 
system "? 
 
RESPONSE  
In May 2016, "multiple -award tendering" became applicable to the procurement by the local 
governments listed in Annex 2 of the WTO -GPA. A procuring entity which is a local government, 
when it awards a contract through general competitive bidding or selective bidd ing, may apply the 
"multiple -award tendering " in cases where it procures excessive quantity of delivery of goods or 
supply of services, in accordance with Article 10 of the Cabinet Order Stipulating the Special 
Procedures for Government Procurement of Prod ucts or Specified Services by a Local Public Entity 
(Cabinet Order No.372 of November 1, 1995). For reference, the "multiple -award tendering " has 
already been introduced for procurement by the central government, in accordance with Article 11 
of the Cabine t Order Stipulating the Special Procedures for Government Procurement of Products 
or Specified Services by the Central Public Entity (Cabinet Order No.300 of November 18, 1980).  
 
Question 10. Can Japan provide further explanation on the implementation of "general voluntary 
measures " including under "sector -specific voluntary measures " in government procurement?  
 
RESPONSE  
The "general voluntary measures " as described in Table 3.23 are applied to all procurements 
except for the government procurements under t he "sector -specific voluntary measures " as 
described in Table 3.24  
 
Q11. Malaysia would like to request for Japan to provide further explanation on Japan 's bid 
challenge mechanism?  WT/TPR/M/351/Add.1  
 
- 84 - 
 
  RESPONSE  
Please see below for the details.  
http://www5.cao.go.jp/access/en glish/chans_main_e.html  
 
Q.12 In May 2016, Japan adopted a new legal timber law called "Law Concerning the promotion of 
Distribution and Use of Legally - Harvested Timber ". Could Japan further elaborate on the new 
implementation of the new legislation?  
 
RESPONSE  
The Act on the Promotion of Use and Distribution of Legally -Harvested Wood and Wood Products 
(unofficial translation of the title of the original Japanese law) aims to contribute to the 
preservation of natural environment by promoting the use of lega lly-harvested wood products in 
the domestic market through encouraging related entities including importers and exporters in 
Japan to confirm the legality of harvesting. Related ordinances of the Act are currently being 
formulated and the Government of Jap an will implement the Act in such a way that it does not 
create unnecessary burdens on related entities.  
 
Q.13 Appreciate if Japan could share a report on timber sector including the furniture sector.  
 
RESPONSE  
Please refer to the following web site: "Annual Report on Forest and Forestry in Japan " 
http://www.rinya.maff.go.jp/j/kikaku/hakusyo/27hakusyo/attach/pdf/index -1.pdf 
 
Q14. Malaysia would appreciate if Japan could indicate what are the other selected sectors in the 
services that are still closed to fo reign investment and are there specific reasons for the protection. 
Japan to also share if the there are any plans to liberalize those areas and also share the 
challenges faced in liberalizing the other areas.  
 
RESPONSE  
Regarding the other sectors that are  closed to foreign services suppliers, notarization services and 
pilotage services could be raised as examples. Regarding health related services described in 
paragraph 20 of the report, restrictions for foreign investment do not exist on the basis of 
dome stic laws. However, some differences between domestic laws and international commitments 
exist due to the political decisions the GOJ made through negotiations with other countries 
according to the sensitivity of each sector.  
 
Q15. Based on Japan 's experie nces in assisting and improving policies for SMEs, could Japan 
provide further details on the strategy and policies being implemented for the development of 
SMEs? This could also be accompanied by the indication of the percentage of SMEs in the services 
sector? 
 
RESPONSE  
The Government of Japan implements following policy measures for SMEs and microenterprises.  
- Support for local SMEs ' expansion to overseas  
- Support for improvement of productivity of mid -ranking companies, SMEs and microenterprises  
- Promotion of provision of growth funds which do not need collateral or a surety by using a "local 
benchmark, " etc., enhancement of financing functions, and acceleration of business 
revitalization/succession.  
 
Q16. Malaysia would appreciate if Japan could expl ain further on the implementation of Aid for 
Trade (AfT) in Japan and what are the countries that have benefited the most from this initiativ e?  
 
RESPONSE  
The Government of Japan does not define the priority countries for Aid for Trade, but during five 
years from 2011 to 2015, the most benefited country of total amount of grants, technical 
assistance and loans is Vietnam, second is India.  
 
Q .17  Malaysia seeks information of the outward investment policy of Japan. Could Japan also 
explain moving forward, wh at are the areas or sectors that Japan will be looking into.  
 WT/TPR/M/351/Add.1  
 
- 85 - 
 
  RESPONSE  
The Government of Japan has promoted overseas presence of Japanese enterprises 
comprehensively through such measures as;  
1) Holding bilateral economic dialogues  
2) Improving investmen t environment through ODA  
3) Concluding economic treaties including Bilateral Investment Treaties, Economic Partnership 
Agreements, Tax Treaties, Social Security Agreements etc.  
4) Utilizing domestic agencies such as NEXI, JBIC, JETRO, JICA.  
 
Q .18 In addi tion, in recent years, are there any particular initiatives taken by Japan to increase 
investment in the East Asia region?  
 
RESPONSE  
It is important to establish "high quality " trade and investment rules in East Asia whose economy 
is expected to continue t o grow. The Government of Japan has been actively promoting economic 
partnership negotiations such as Regional Comprehensive Econom ic Partnership (RCEP) and 
China -Japan -Korea FTA.  
 
Question 19: Recently, President -elect Donald Trump 's withdrew USA from the  Trans -Pacific 
Partnership agreement. Can Japan share with us the how this decision would impact Japan 's 
economy?  
 
RESPONSE  
The TPP Agreement is intended to establish new common rules for the 21st century in the Asia -
Pacific region and form a huge free and  fair economic zone. It also seeks to deepen and broaden 
economic ties among countries and regions that share fundamental values such as freedom, 
democracy, basic human rights, and the rule of law, and is hence strategically significant in terms 
of pursuin g further regional stability. In light of the significance of the TPP, the Government of 
Japan notified the Depositary of the completion of Japan 's domestic procedures for the TPP. The 
Government of Japan intends to continue to closely consult with other o riginal signatories on the 
future of the TPP and tenaciously encourage them to promptly complete their domestic procedures 
toward the entry into force of the TPP Agreement.  
 
Q 20. Trump trade protectionist policy:  How does it impact to inward investment in  Japan?  
 
RESPONSE  
The amount of direct investment from the United States to Japan as of the end of 2015 exceeds 
6 trillion yen (56 billion dollars), accounting for about 30% of inward direct investment in Japan. In 
order to further increase this inward dir ect investment, Japan has set the goal of doubling the 
inward foreign direct investment to 35 trillion yen by 2020, and is working on improving the open 
investment environment. It is important to deepen the investment relation between Japan and the 
United States by proactively promoting cooperation in individual fields through, for example, the 
Japan -U.S. Economic dialogue.  
 
Question 21. The MRA with the Customs Administration of Japan is the first MRA on AEO signed by 
Malaysia. Since signing the MRA in Jun e 2014, what are the common challenges that the 
Japanese 's companies facing in participating this AEO programme in Malaysia?  
 
RESPONSE  
Japan Customs is not aware of any issues related to this AEO programme in Malaysia.  
 
Q22. Malaysia welcomes information o n the current progress of this strategy. Could Japan also 
elaborate whether this has contribute to the positive signal on the trend of foreign investment in 
Japan.  
 
RESPONSE  
The Government of Japan, aiming to realize "the most business -friendly county in t he world ", has 
implemented regulatory reforms in such fields as energy, healthcare and agriculture, and will 
introduce a new methodology for regulatory reforms from the business perspective.  
In addition, the Government of Japan has been improving Japan's b usiness and living environment 
to attract foreign investment into Japan, in accordance with "Five Promises for Attracting Foreign WT/TPR/M/351/Add.1  
 
- 86 - 
 
  Businesses to Japan" and "Policy Package for Promoting Foreign Direct Investment into Japan to 
Make Japan a Global Hub", under  Council for Promotion of Foreign Direct Investment in Japan.  
The amount of inward FDI has been steadily increasing and the valuation on Japan as a business 
location by foreign enterprises has been improving.  
 
Q23. Can Japan its view on how the China's 'On e Belt One Road' (OBOR) would reflect the inward 
FDI in Japan.  
 
RESPONSE  
The Government of Japan is not in a position to explain how China 's policy affects its investment to 
Japan.  
 
 
10. UKRAINE  
TRADE POLICY REVIEW  
JAPAN  
QUESTIONS FROM UKRAINE  
Report by th e Secretariat (WT/TPR/S/351)  
 
2 TRADE AND INVESTMENT REGIME  
2.4 Investment Regime  
Paragraphs 2.21, 2.22, pages 25 - 26 
The Report notes that "The Act on National Strategic Special Zones of 2013 provides for the 
designation of zones based on the expectation  that regulatory reform will lead to increased 
investment. According to the authorities, precise details for each zone are to be decided by 
consensus between the national government, local authorities, and the private sector." Paragraph 
2.22 informs about ten national strategic special zones.  
 
Question  
Could Japan kindly provide examples of possible benefits for investors that may be offered in 
national strategic special zones according to Japanese legislation?  
 
RESPONSE  
The National Strategic Special Zones  grants special provisions in a variety of fields (78 total 
reforms have ever been realized by the NSSZs as of February 15, 2017, including the nationwide 
measures), with the aim of developing the easiest environment for doing business in the world, to 
enable private sector to fully show their abilities that link to economic growth. In addition to 
regulatory reforms, tax reliefs and interest subsidies are also introduced in the NSSZs.  
The examples are as follows: Firstly, the Tokyo One -Stop Business Establi shment Center was 
established to promote foreign -owned and domestic venture corporations; the Center offers 
comprehensive support for procedures related to corporate foundation. Secondly, the current 
requirements for the Investor/Business Manager visa cate gory (namely, the need to either employ 
at least two full -time employees or invest a minimum amount of five million yen) can be relaxed in 
the NSSZs, provided that an agreement has been reached between the national government, local 
authorities and the pri vate sector.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
3.1.1.1 Transparency and legal framework  
Paragraph 3.6, pages 28 - 29 
According to the Report "Japan deposited its ins trument of acceptance of the Trade Facilitation 
Agreement (TFA) with the WTO on 1 June 2015. On 6 April 2015, Japan set up a national 
committee on trade facilitation, known as the Liaison Conference on Trade Facilitation (LCTF), as a 
forum for information -sharing among relevant ministries and agencies, represented at director -
general level."  
 
Question  
Could Japan kindly provide some more details about the Liaison Conference on Trade Facilitation 
(LCTF), including general procedure of its operation, main fun ctions, related legal policy 
framework, and inform of concrete results of its activity?  WT/TPR/M/351/Add.1  
 
- 87 - 
 
  RESPONSE  
"Liaison Conference on Trade Facilitation (LCTF)" consists of the following members:  
- Director -General, Economic Affairs Bureau, Ministry of Foreign Affairs  
- Director -General, Customs and Tariff Bureau, Ministry of Finance  
- Assistant Minister for International Affairs, Ministry of Health Labour and Welfare  
- Director -General for International Affairs, Minister's Secretariat, Ministry of Agriculture, Forestry 
and Fisheries  
- Director -General, Trade Policy Bureau, Ministry of Economy, Trade and Industry.  
A director -level secretariat was established under the liaison conference for assisting the LCTF, and 
coordinating the works of the parties concerned as necessa ry. 
The function of the LCTF is to facilitate both domestic coordination and implementation of the 
provisions of the TFA.  
The LCTF was set up in April 2015 by arrangements among the ministries concerned (which is not 
a law or regulation), but its meeting h as not been held so far.  
 
3.1.1.2 Fees and formalities  
Paragraph 3.11, Page 30  
The Report notes that "Japan's Single Window is managed by an independent agency under a 
private -public partnership (PPP) arrangement."  
 
Question  
Could Japan please shortly desc ribe main terms of concluded private -public partnership (PPP) 
arrangement, including its benefits for the State, and provide some more information on 
mentioned independent agency?  
 
RESPONSE  
NACCS (Nippon Automated Cargo and Port Consolidated System)  is not  only a joint public -private 
system but also a core system for Japan 's international trade. Therefore, on every occasion of a 
major system upgrade, or an annual system adjustment, the specification of such upgrades or 
adjustments is determined on a consens us basis, through coordination of opinions among relevant 
stakeholders, i.e. government, business sector and NACCS Center (see below). In this way, NACCS 
is enhancing its convenience, and also contributing to the facilitation of international trade.  
The NACCS Center manages the operation of NACCS and engages in program development and 
modification, and other services related to the running of NACCS.  
For details about the NACCS Center , please see the following web page.  
http://www.naccs.jp/e/aboutcenter/sum mary.html  
 
3.1.1.3 Release and clearance of goods  
Paragraph 3.13, Page 30  
It is mentioned in the Report that "Japan has several systems in place to expedite the release and 
clearance of goods. An Authorized Economic Operator (AEO) programme has been devel oped in 
close cooperation with the business sector, with the aim of ensuring security while facilitating 
legitimate trade".  
In responses to previous review Japan answered that "As for the companies exporting goods to 
Japan from other countries, they are ou t of the scope of AEO programs in Japan."  
 
Question  
Could Japan kindly address whether it plans to expand the scope of its AEO programs, in particular 
for the companies exporting goods to Japan from other countries?  
 
RESPONSE  
An AEO program established in one country/customs territory is only applicable to companies 
operating in that country/customs territory. Companies exporting goods to Japan from other 
countries will remain out of the scope of AEO programs in Japan.  
 
3.1.4 Tariffs  
3.1.4.1 MFN applied tar iff  
Paragraph 3.25, Page 34  
The Report states that "Import duties on agricultural products are higher than duties on non -
agricultural products: the simple average for agriculture (WTO definition) is 16.3% (14.9% in 
FY2014), compared with 3.6% for non -agricultural products (3.7% in FY2014). Simple average WT/TPR/M/351/Add.1  
 
- 88 - 
 
  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)."  
 
Questions  
Could Japan kindly inform of its plans concerning possible changes in tariff policy? Does Japan 
intend to reduce any tariffs on agricultural goods and other mentioned products? Based on what 
factors may such possible reduction be decided by Japan?  
 
RESPONSE  
In Japan, the necessary adjustment to the rates of customs duty on goods is determined with a 
view to contributing to the sound development of the national economy. As for the products 
referred to in the Secretariat Report, it is not intended to reduce tho se tariffs in this moment.  
 
3.1.5 Import prohibitions, restrictions, licensing, and quotas  
Paragraph 3.31, Page 37  
The Report mentions that "Japan amended the Customs Law in March 2015; the amendment 
added the products designated under Article 2, paragrap h 15 of the Law on Securing Quality, 
Efficacy and Safety of Products including Pharmaceuticals and Medical Devices to the list of items 
subject to import prohibition."  
 
Question  
Could Japan kindly clarify what products were added to the list of items subje ct to import 
prohibition with mentioned amendment (in March 2015) and provide rationale behind establishing 
such measure?  
 
RESPONSE  
Those chemical substances designated as having high probability of stimulating, suppressing or 
hallucinating effects on the central nerve system (hereinafter referred to as "designated 
substances") under the Law on Securing Quality, Efficacy and Safety of Products Including 
Pharmaceuticals and Medical devices (hereinafter referred to as "the Law"), were added to "the 
List of Go ods Subject to Import Prohibition" by the amendment of the Customs Law in March 2015.  
Before this amendment, Japan Customs did not have legal authority to confiscate and destroy 
"designated substances", even with prima facie  evidence that substances found  at the border were 
not furnishing necessary approval for their importation in accordance with the Law. Having seen 
the upsurge of crimes and serious accidents caused by the abuse of "designated substances", with 
a view to strengthening border enforcement against them, Japan amended its Customs Law to add 
"designated substances" to "the List of Goods Subject to Import Prohibition". This amendment 
enabled Japan Customs to confiscate and destroy designated substances at the time of importation  
 
Paragraph 3.35 , Page 38  
The Report states that "The Ministry of Economy, Trade and Industry (METI) is responsible for 
administering the import quota system. Eligible importers are issued with an import quota 
allocation certificate. The method for allocating quotas, spec ified 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, consum ption, 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 the remaining unallocated quota, quotas are allocated by lottery."  
 
Question  
Could Japan kindly clarify the procedure of quotas allocation by lottery, us ed when the amount 
applied for exceeds the remaining unallocated quota?  
 
RESPONSE  
METI makes allocations of import quotas after deciding the order of receipt of application, through 
open drawing only when the total quantity requested by applicants exceeds the remaining 
unallocated quota on the application day.  
Detailed information about the drawing process can be found on the following METI website (in 
Japanese only);  WT/TPR/M/351/Add.1  
 
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  http://www.meti.go.jp/policy/external_economy/trade_control/boekikanri/download/import/20 05/
20050218_079_im.pdf.  
 
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
Paragraph 3.70, Page 44  
According to the Report "In order to promote exports of agricultural, forestry, and fishery 
products, the Ministry of Agriculture, F orestry and Fisheries has taken the following measures 
mainly for small and medium -sized enterprises: overseas promotion of Japanese foods and 
agricultural products; overseas market research; support for presentations given at exhibitions 
overseas; provisi on of business meeting opportunities in Japan and overseas; and offering training 
seminars in Japan and overseas."  
 
Question  
Would Japan please clarify in which way the Ministry of Agriculture, Forestry and Fisheries takes 
mentioned measures and at what ex penses?  
 
RESPONSE  
The Japan External Trade Organization (JETRO), the official agency responsible for promoting 
exports, is the main implementation body of the mentioned measures in paragraph 3.70, such as 
overseas market research, holding Japan booths at m ajor international trade exhibitions, providing 
business meeting opportunities with overseas buyers, and offering training seminars according to 
the level of trade experience. And MAFF has made financial support for JETRO 's promotion 
activities as well as coordinated its promotion plans.  
 
3.3 Measures Affecting Production and Trade  
3.3.6 Standards and other technical requirements  
Paragraph 3.122, pages 58 - 59 
The Report mentions about changes in basic laws on standards and technical regulations in Japan 
since the last review. Paragraph 3.122 notes that "The main changes also include the amendment 
in 2015 of the 1960 Law on Securing Quality, Efficacy and Safety of Products including 
Pharmaceuticals and Medical Devices, which transferred the authority to issu e licences to specially 
controlled medical device sellers from prefectures to designated cities and specified districts."  
 
Question  
Could Japan kindly clarify the procedure of obtaining licences and explain rationale behind such 
changes?  
 
RESPONSE  
The spec ially controlled medical device seller 's license (hereinafter referred to as "the license") is 
regulated under Article 39 of the Law on Securing Quality, Efficacy and Safety of Products 
Including Pharmaceuticals and Medical devices (hereinafter referred to  as "the Law"). When a 
seller submit an application for the license to a local governmental office of prefecture, designated 
city, or specified district where the seller is located, officers check whether the applicant meets the 
criteria for specially cont rolled medical device seller, and if it does the local government issue the 
license in accordance with Article 39 paragraph 2 of the Law.  
This amendment is intended to be a part of promotion of reform to boost regional autonomy and 
independence. As designa ted cities and specified districts have already had authority of license 
permission of pharmacy, they were thought to be competent enough to have authority of license 
permission for specially controlled medical device seller.  
 
3.3.10 Intellectual property rights  
3.3.10.2 Patents  
Paragraph 3.184, Page 79  
According to the Report "Parallel imports are allowed in Japan in accordance with the principle of 
"international exhaustion". Compulsory licences may be granted after at least three consecutive 
years if a patent is not worked, if it is thought to be necessary for the public welfare, or if the 
patent is needed to be worked for another patent and its owner is unwilling to allow its use. 
However, as of August 2016, Japan has never granted any compulsory licenc es." 
 WT/TPR/M/351/Add.1  
 
- 90 - 
 
  Question  
In view of the Protocol Amending the TRIPS Agreement entering into force, could Japan kindly 
clarify how the provisions of mentioned Protocol are implemented in the Japanese legislation? 
Please, provide information and links on the relevant legislative provisions.  
 
RESPONSE  
The government of Japan will implement the compulsory license system provided in the Protocol 
Amending the TRIPS Agreement by utilizing the award system granting non -exclusive license 
which is regulated by Articles 83 to 9 3 of the Japan Patent Act. Please refer to following WIPO LEX 
homepage.  
<WIPO -LEX: the Japan Patent Act>  
http://www.wipo.int/wipolex/en/details.jsp?id=16061 . 
 
3.3.10.6 Geographical indications  
Paragraphs 3.191, 3.196, pages 81 - 82 
The Report states that "The new law for protecting geographical indications (Act on Protection of 
the Names of Specific Agricultural, Forestry and Fishery Products and Foodstuffs) was prepared by 
the Ministry of Agriculture, Forestry and Fisheries, and came into force in June 20 15. It applies 
only to geographical indications of foods, beverages, and agricultural and marine products."  
According to Paragraph 3.196 "Registration of GIs for alcoholic beverages is under the 
responsibility of the Commissioner of the National Tax Agency . The Agency designates GIs in 
accordance with the Indicating Standards Concerning Geographical Indications for Liquor under the 
Act Concerning Liquor Business Associations and Measures for Securing Revenue from Liquor Tax."  
 
Question  
Could Japan kindly in form whether Japanese legislation stipulates any requirements concerning 
quality before registration of GIs for alcoholic beverages and, if so, what entities are responsible 
for quality control and for enforcing geographical indications of alcoholic bevera ges? 
 
RESPONSE  
The requirements to be designated as GIs for alcoholic beverages in Japan are in accordance with 
TRIPS agreements, where a given quality, reputation or other characteristic of liquor should be 
essentially attributable to its geographical ori gin. In addition, a continuous management to 
maintain such characteristics of liquor should be carried out by an organization established by 
relevant GI liquor producers.  
 National Tax Agency enforces the protection of GIs  for alcoholic beverages  based on the Act 
concerning Business Associations and Measures for Securing Revenue from the Liquor Tax,  
including the enforcement at the border in close cooperation with Japan customs.  
 
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural polici es 
4.1.2.1 Legal and institutional framework  
Paragraph 4.12, pages 91 - 92 
The Report notes that "Programmes to encourage production limitation apply to rice. These 
programmes 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."  
 
4.1.2.3 Domestic support  
4.1.2.3.2 Rice  
Paragraph 4.29, Page 94  
According to Paragraph 4.29 "Under the production adj ustment programme, 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, since some la nd may be diverted to other uses or taken out of production entirely. A 
direct payment scheme has been available under the direct payments for rice programme since 
2011 for farmers that participated in the production adjustment programme."  
 WT/TPR/M/351/Add.1  
 
- 91 - 
 
  4.1.2.3.3 Other  cereals, sugar beet, starch potatoes, buckwheat, and rapeseed  
Paragraph 4.31, Page 94  
Paragraph 4.31 states that "Under the Act on Farming Income Stabilization, core farmers 
producing wheat, barley, soya beans, sugar beet, and starch potatoes as well as b uckwheat and 
rapeseed (since the 2015 crop year) are eligible for payments based on area planted in the current 
year and payments based on the quantity and quality of annual output."  
 
Questions  
Could Japan kindly describe direct payment schemes which are a vailable for farmers participating 
in the production adjustment programme for rice and for farmers producing other cereals, sugar 
beet, starch potatoes and so on? How does Japan evaluate effect of these support programmes on 
trade?  
 
RESPONSE  
The direct pay ment for table rice is payed to the farmers and community -based farm cooperatives 
who produce table rice for the purpose of sale, under the rice production allotted by 
administration. This payment will eventually be abolished in 2018.  
The direct payment fo r field crops (wheat, soybean, sugar beet, starch potato, buckwheat, and 
rapeseed) is a measure intended to compensate for the disadvantages arising from the gaps of 
production conditions between Japan and other countries. It is implemented from the viewpo int of 
ensuring the stability of farm management by business farmers  
 
4.1.2.2 Trade policies  
Paragraph 4.18, Page 92  
The Report notes that "Under the simultaneous buy and sell (SBS) systems for rice and wheat, an 
importer and a domestic user make a joint b id to MAFF specifying the government purchase price 
from the importer and government sale price on the domestic Japanese market. MAFF collects the 
difference in the prices."  
 
Questions  
Ukraine would appreciate if Japan could provide information on main imp orters of rice and wheat 
under the simultaneous buy and sell systems during the period under review. Are there any 
particular requirements for importers, participated in such systems, according to Japanese 
legislation?  
 
RESPONSE  
There are eligibility crite ria, such as total equity capital and import and export experience for rice 
and/or wheat.  
Currently, there are 25 trading companies that are registered eligible to participate in SBS tender 
for rice and/or wheat  
 
4.1.2.3 Domestic support  
4.1.2.3.5 Tobacco  
Paragraph 4.35, Page 95  
According to the Report "Importers, wholesalers, and retailers of cigarettes are required to register 
with the Minister of Finance who must approve final retail prices. Although tobacco products are 
subject to excise duties, some br ands, all owned by Japan Tobacco, are subject to lower rates."  
In responses to previous review Japan noted that "The cabinet has decided to propose to phase 
out the preferential tax treatment for tobacco as part of "FY2015 Tax Reform" adopted in January 
2015. Now the government of Japan is preparing a relevant bill to submit to the Diet."  
 
Question  
Could Japan kindly inform on results of "FY2015 Tax Reform" implementation and clarify whether it 
plans to phase out the preferential tax treatment for tobacco?  
 
RESPONSE  
The preferential tax treatment for former third class cigarettes will be phased out from April 2016. 
The detail of the phasing out is as follows.  WT/TPR/M/351/Add.1  
 
- 92 - 
 
  
　（Note）The above rate is a total tax rate of tobacco tax, supecial tobacco tax, prefectural tobacco tax and municipal tobacco tax.6,812yen/1,000pcs7,812yen/1,000pcs9,312yen/1,000pcs12,244yen /1,000pcs
4,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,000
27 28 29 30 31 32Difference
6,432yen/1,000pcs
（128.64yen/pack ）Other cigarettes
Former third class cigarettes（Yen/1,000pcs ）
Phasing out the Preferential Tax Treatment for Former Third Class Cigarettes
+1,000yen/1,000pcs （20yen/pack ）12,244yen/1,000pcs
（244.88yen/pack ）
5,812yen/1,000pcs
（116.24yen/pack ）
2015.4.1 2016.4.1 2017.4.1 2018.4.1 2019.4.1+1,500yen/1,000pcs （30yen/pack ）+2,932yen/1,000pcs
（58.64yen/pack ）
+1,000yen/1,000pcs （20yen/pack ） 
 
4.1.2.4 Support levels  
4.1.2.4.2 OECD indicators  
Paragraph 4.47, pages 97 - 98 
The Report states that "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 
it is provided by a comprehensive set of policies ranging from tariffs and other for ms 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 research, and extension services. Market 
price support is the main component and it, alon g with other transfers based on output and inputs, 
is categorized by the OECD as one of the potentially most production - and trade -distorting forms 
of support."  
 
Question  
Could Japan elaborate on the products which have mainly benefited from these measure s for last 
three years and whether Japan plans to gradually introduce agricultural policy switching from 
trade -distorting forms of support to Green Box measures?  
 
RESPONSE  
Regarding the products and related support, please refer to the notification of dome stic support 
(G/AG/N/JPN/191) for FY2010 to FY2012. The notification for FY2013 is under preparation.  
Taking into account the result of the Uruguay Round negotiations, the Government of Japan has 
reviewed its market price support policies and introduced a nd expanded direct payments. The 
Japanese -style direct payment was introduced in 2015, as one of such direct payments. The 
Government of JapanJapan will continue to pursue structural reform that fits the agricultural 
situation in Japan, in accordance with the WTO Agreement on Agriculture.  
 
Report by JAPAN (WT/TPR/G/351)  
 
2 TRADE AND INVESTMENT POLICY  
2.5 Investment Policy  
2.5.1 Outlook  
Paragraph 2.35, Page 11  
The Report notes that "In the Japan Revitalization Strategy 2016 (decided by the Cabinet in June 
2016), the Japanese Government stated that it "will also aim to increase the amount of inward FDI 
to ¥35 trillion by 2020 (¥24.4 trillion at the end of 2015)"."  WT/TPR/M/351/Add.1  
 
- 93 - 
 
  Question  
Could Japan kindly clarify measures stipulated in the Japan Revitalization Strategy 201 6 for 
improving investment climate?  
 
RESPONSE  
In addition to reforms to regulations in individual fields such as energy, healthcare and agriculture, 
the Government of Japan aims to realize "the most business -friendly county in the world", and 
introduces a new methodology for regulatory and institutional reforms to promote regulatory 
reforms, simplification of administrative procedures, and evolution of information technology, in an 
integrated and unified manner from the entrepreneur 's perspective.  
 
Paragrap h 2.36, Page 11  
According to the Report "In March 2015, under the leadership of the Prime Minister, the Council for 
Promotion of Foreign Direct Investment in Japan adopted the "Five Promises for Attracting Foreign 
Businesses to Japan" as important items to  be addressed going forward. In addition, in May 2016, 
this council adopted the "Policy Package for Promoting Foreign Direct Investment into Japan to 
Make Japan a Global Hub" to promote more FDI to make Japan an international trade and 
investment hub."  
 
Question  
Could Japan kindly provide information on the Council for Promotion of Foreign Direct Investment 
in Japan, in particular its competencies and legal framework of activity?  
 
RESPONSE  
The Council for Promotion of Foreign Direct Investment in Japan, as the headquarters, determines 
that it will cooperate with bodies so as to continuously implement additional measures, such as 
regulatory system reforms that contribute to the improvement of the investment environment, and 
support measures effective in expan ding investment.  
Minister of State for Economic and Fiscal Policy chair this Ministerial Council  
 
Paragraph 2.37, Page 11  
The Report states that "Currently, in accordance with the "Five Promises for Attracting Foreign 
Businesses to Japan" and the "Policy P ackage for Promoting Foreign Direct Investment into Japan 
to Make Japan a Global Hub", through a steady driving growth strategy including discussion and 
drawing conclusions so as to simplify regulations and administrative procedures relevant to foreign 
companies, the Government of Japan will actively improve Japan's business and living 
environment, and actively attract foreign investment.  
 
Question  
Ukraine would appreciate if Japan could kindly describe what initiatives, aimed to attract foreign 
investments  into Japan, are implemented by Japanese Government (so as to simplify regulations 
and administrative procedures) . 
 
RESPONSE  
The Government of Japan introduced a new methodology for regulatory and institutional reforms 
to promote regulatory reforms, simpli fication of administrative procedures, and evolution of 
information technology, in an integrated and unified manner from the entrepreneur 's perspective.  
Also, issues related the "Five Promises for Attracting Foreign Businesses to Japan" and the "Policy 
Package for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub" have 
been pointed out by foreign companies, and through implementing measures for these issues, 
business and living environment will be improved for foreign companies in Ja pan.  
In particular, the Government of Japan is discussing simplification of regulations and 
administrative procedures associated with Foreign Direct Investment in Japan, through the 
Working Group for Revising Regulations and Administrative Procedures, The  working group decided 
on "Immediate Report" (December 22, 2016) last December, and will draw a conclusion around 
this spring.  
These actions will attract foreign investments into Japan.  
 
2.5.2 Investment Agreements  
Paragraph 2.38, Page 11  
The Report notes  that "Japan has actively promoted the conclusion of investment agreements as 
they create stable, equitable, favourable and transparent conditions for greater investment WT/TPR/M/351/Add.1  
 
- 94 - 
 
  through the removal of barriers to investment and provision of investor protections. I n the Japan 
Revitalization Strategy (decided by the Cabinet in June 2016), the Japanese Government set the 
goal of signing and/or achieving entry into force of investment -related agreements (investment 
agreements and economic partnership agreements with in vestment chapters) covering 100 
countries/regions by 2020. As of September 2016, Japan has concluded bilateral investment 
agreements, and a trilateral investment agreement, with 35 countries and regions as well as EPAs 
that contain investment chapters with  12 countries."  
 
Question  
Ukraine would appreciate if Japan could inform on countries, with which Japan is going to conclude 
investment agreements in the near future.  
 
RESPONSE  
Currently 10 bilateral investment treaties (Republic of Angola, People 's Democ ratic Republic of 
Algeria, State of Qatar, United Arab Emirates, Republic of Ghana, Kingdom of Morocco, United 
Republic of Tanzania, Argentine Republic, Republic of Cote d'Ivoire, Kingdom of Bahrain) and six 
bilateral/regional free trade agreements contain ing investment provisions (AJCEP*, Canada, 
Japan -China -ROK, EU, RCEP**, Republic of Turkey) are under negotiation. In addition, five 
bilateral investment treaties (Saudi Arabia, Uruguay, Oman, Kenya and Israel) have been signed.  
* AJCEP: ASEAN -JAPAN Compre hensive Economic Partnership  
** RCEP: Regional Comprehensive Economic Partnership  
 
Other questions  
 
Questions  
According to Table 1.2 of the Report by the Secretariat (Page 17) receipts from travel services 
increased significantly in Japan (from US$ 11 billi on in 2011 to US$25 billion in 2015). In view of 
this could Japan kindly provide information on its approaches to development of tourism, in 
particular on establishing and functioning of tourist information centers in Japan? Are there any 
technical assista nce programmes, provided by Japan for developing countries, aimed to share 
practical experiences and information on such matters?  
 
RESPONSE  
Receipts from travel services in Japan steadily increased along with the increase of foreign visitors 
to Japan. Basi cally, each local government establishes and operates T ourist Information Centers 
(TICs) in Japan. The list of the main TICs is available in the following URL.  
http://www.jnto.go.jp/eng/arrange/travel/guide/voffice.php . 
Although there are not any support  programs for establishing and operating tourist information 
centers in developing countries, Japan shares its best practices through the Japan International 
Cooperation Agency (JICA) program lectures on Japanese tourism policy.  
 
 
11. SINGAPORE  
QUESTIONS  
 
3 Trade Policies and Practices by Measure  
 
Page 30 (Para 3.11)  
 
1. We note that there are nine regional customs offices in Japan, and currently seven 
customs offices are linked to Japan 's Single Window, NACCS.  
 
 Could Japan share which are the two customs off ices not linked to NACCS, and if there are 
plans for them to come on board?  
 
RESPONSE  
As NACCS is linked to all customs offices, the description in Para 3.11 of the Secretariat Report 
appears to be incorrect.  
 
 If the two customs offices are currently not linked to NACCS, how do they accept import 
declaration and documents? Is it via paper submission?  WT/TPR/M/351/Add.1  
 
- 95 - 
 
  RESPONSE  
As NACCS is linked to all customs offices , the description in Para 3.11 of the Secretariat Report 
appears to be incorrect.  
 
 How are Authorized Econo mic Operators from countries which Japan had signed MRAs with, 
identified in ports that are not linked to NACCS?  
 
RESPONSE  
As NACCS is linked to all customs offices, the description in Para 3.11 of the Secretariat Report 
appears to be incorrect.  
 
 Are there  any new reforms or developments that Japan Cu stoms aims to achieve regarding 
its single window?  
 
RESPONSE  
Different systems that were developed by different government agencies have been integrated 
into NACCS, and thereby the convenience and efficiency of  the system have been enhanced. Japan 
is going to further expand the coverage of relevant documents, including certificates, that can be 
processed by NACCS.  
 
 
12. BRAZIL  
WT/TPR/S/351 - Paragraph 2.3.3 Other agreements and arrangements  
1. Are there administ rative procedures/formal steps within the current Japanese General System 
of Preferences (GSP) for the analysis of formal requests by interested importers/exporters or 
Governments to add/reintroduce or exclude covered products?  
 
RESPONSE  
To cope with the c urrent domestic and international economic climate, tariff measures including 
GSP have been reviewed every year through due procedures. Please check the following URL for 
more detailed information on the tariff revision procedures (which include how foreig n 
governments request tariff -revision).  
http://www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
 
2. For items that were excluded from the Japanese GSP program in the past, is there a formal 
process to petition for redesignation of the product?  
 
RESP ONSE  
Japan does not have such a procedure in place.  
3. Are there provisions for administrative appeal in the case of graduation of a specific country or 
product?  
 
RESPONSE  
Japan does not have such an administrative appeal procedure in place.  
4. The Brazili an extracts, essences and concentrates of coffee were graduated by Japanese 
government in 2014. In 2017, the Brazilian government verified that this product did not achieve 
the graduation criteria applied by Japanese government. Concerning this subject, ar e there 
measures that Brazilian government, or private sector, needs to adopt in order for this product to 
be reintroduced to the GSP program and receive tariff benefits?  
 
RESPONSE  
The Brazilian extracts, essences and concentrates of coffee  will again rec eive preferential tariff 
treatment as of 1 April, 2017. No request or application from Brazilian government or private 
sector is required for this reintroduction . 
 
WT/TPR/S/351 - Paragraph 3.3.6 Standards and other technical requirements  
5. Japan Customs i mpose a sucrose content limit of 98.5° polarization to raw sugar imports to 
receive a zero duty treatment. A tariff of about US$215/t is levied upon any raw sugar with a 
polarization above this limit. This limit of 98.5° polarization neither matches WCO HS  definition nor 
the Codex standard concerning raw sugar. Subheading Note 1 to Chapter 17 of WCO's HS 
Nomenclature 2017 edition, for the purposes of subheadings 1701.12, 1701.13 and 1701.14, WT/TPR/M/351/Add.1  
 
- 96 - 
 
  defines "raw sugar" as "sugar whose content of sucrose by weight, in the dry state, corresponds to 
a polarimeter reading of less than 99.5°", whereas the CODEX STAN 212 -1999 states that the 
specification of a polarization limit for "plantation or mill white sugar" are of "not less than 99.5°" , 
which strengthens WCO's no tion that sugar with a polarization under 99.5° is considered raw. 
Japan is, therefore, using a restriction (a technical barrier) that does not comply with international 
standards in CODEX and WCO HS definitions, and that excludes Brazilian raw sugar expor ts (with a 
polarization varying from 99.00 to 99.49°) from its market. What is the Japanese justification for 
disregarding CODEX and WCO definitions?2 
 
RESPONSE  
The Government of Japan administrates the current system of tariffs and levies applied to raw 
sugar imports, in a manner consistent with the WTO Agreement and WCO HS definitions.  
The custom tariff schedule of Japan, in accordance with WCO definitions, stipulates that "for the 
purposes of subheadings 1701.12, 1701.13, and 1701.14, "raw sugar" means s ugar whose content 
of sucrose by weight, in the dry state, corresponds to a polarimeter reading of less than 99.5°". In 
Japan 's WTO tariff schedule, Japan binds the final rates of raw sugar 71.8 yen/kg for "content of 
sucrose by weight, in the dry state, c orresponds to a polarimeter reading of less than 98.5°" and 
103.1 yen/kg for "other", whose content of sucrose is not less than 98.5° and less than 99.5°. The 
Government of Japan collects the tariff and levy within the WTO bound rates and zero tariff for 
"less than 98.5°" and 21.5 yen/kg for "not less than 98.5° and less than 99.5 °".  
The Government of Japan respects the CODEX standards set mainly for food safety purposes 
including CODEX STAN 212 -1999 which applies to sugars intended for human consumption. We 
understand that CODEX STAN 212 -1999 also stipulates the definition of raw cane sugar but there 
is no specific description regarding sucrose content.  
Japan is one of the major raw sugar importing countries, and imports around 1.2 million MT from 
WTO mem bers every year, under a sugar import system that is administrated in a manner 
consistent with international agreements including WTO.  
 
WT/TPR/S/351 - Paragraph 3.3.7 Sanitary and phytosanitary measures (SPS)  
6. Paragraph 3.148 states that Japan has allowe d beef imports from Brazil under certain conditions 
based on scientific review by the Food Safety Commission. However, there are still restrictions on 
the export of beef extract from Brazil, specifically regarding the age criterion of cattle, which must 
have 48 months or less. In light of that, Brazil would like to receive the scientific basis for such 
requirement, taking into account the OIE recommendations.  
 
RESPONSE  
The scientific basis for import requirements of beef and beef offal from Brazil is as fol lows:  
http://www.fsc.go.jp/fsciis/evaluationDocument/show/kya20130412096  
For reference, the English translation of the risk assessment report (abstract only) is available at:  
http://www.fsc.go.jp/fsciis/attachedFile/download?retrievalId=kya20130412096&file Id=202  
7. The World Organization for Animal Health (OIE) defends that the use of vaccination against Foot 
and Mouth Disease (FMD) "remains an option as part of an effective control strategy for FMD". 
According to OIE 's Strategy for the Control and Eradicat ion of Foot and Mouth Disease at Regional 
and Global Levels, "vaccination is an essential tool in the control of FMD". Similarly, OIE and 
several WTO members (e.g. the European Union and New Zealand) point out that the main 
reasons for not using this metho d of disease control are related to the financial and technical 
difficulties of their application. Therefore, the consumption of meats that have been subjected to 
this vaccine does not present risks to human or animal health (OIE). Why does Japan disagree 
with OIE 's recommendations in this regard? What are the criteria used by the Japanese 
Government for such decision?  
 
RESPONSE  
The Government of Japan takes SPS measures based on recommendations by the OIE.  
In response to a request from the competent author ity of a foreign country, to lift a ban on beef or 
pork import, the Government of Japan conducts a risk assessment on entry of the FMD into Japan 
in accordance with the designated procedure. Based on the result of the risk assessment, the 
                                                
2 Polarisation (pol): An approximate measure of the suc rose content of the sugar. Polarisation is 
measured by preparing a standard solution from the sugar and measuring the optical rotation of polarised light 
passing through a cell containing the solution. Sugar of 98 degrees pol would contain about 98% sucros e. 
Polarimeter and Saccharimeter: Instruments used in sugar analysis to measure the amount of rotation of 
polarised light when passed through a sugar solution. The amount of rotation provides an estimate of the 
amount of sucrose in the solution.  WT/TPR/M/351/Add.1  
 
- 97 - 
 
  Government of Jap an is to establish import requirements and then lift the ban on the import. 
Please be noted that Japan 's risk assessment procedure conforms to Chapter 2.1. of the OIE 
Terrestrial Code.  
Currently, the Government of Japan is conducting a risk assessment on t he import of fresh meat 
from an FMD free country where vaccination is practiced, namely Uruguay, while the Government 
of Japan does not allow the import of beef or pork from such countries or zones where vaccination 
is practiced at the moment.  
 
8. Accordin g to Resolution 20 of March 2016 of the World Organization for Animal Health (OIE), 
Brazil has negligible risk for bovine spongiform encephalopathy. What is the scientific rationale 
adopted by Japan to disagree with OIE 's resolution?  
 
RESPONSE  
The scientif ic basis for import requirements of beef and beef offal from Brazil is as follows:  
http://www.fsc.go.jp/fsciis/evaluationDocument/show/kya20130412096  
For reference, the English translation of the risk assessment report (abstract only) is available at:  
http://www.fsc.go.jp/fsciis/attachedFile/download?retrievalId=kya20130412096&fileId=202  
 
9. The Food Sanitation Act of Japan, notified under G/SPS/N/JPN/483 prohibits the use and sale of 
food additives, except a few items according to Article 11 of the Act and  under certain standards. 
In the case of Tertiary Butylhydroquinone (TBHQ), Japan does not list it at all, which means that 
there is a 100% ban on the use of this substance, used in the food industry as an antioxidant. 
According to CODEX STAN 192 -1995, TBH Q is classified as an Antioxidant that could be used in 23 
food categories at 400mg/kg to 100mg/kg. Japan is therefore, using a higher restriction (a ban) 
than necessary to protect human health. What was the Japanese risk assessment performed to 
justify th is ban under Article 5.7 of SPS?  
 
RESPONSE  
Japan takes into account the Codex standards whenever designating food additives and 
establishing food additive standards. The designation process of a food additive  is based on an 
application by applicant. Once a n application is submitted, Japan is ready to process it without 
undue delay, and will consider Codex standards for establishing food additive standards.  
 
WT/TPR/S/351 - Paragraph 4.1.2.3.1 General support programs  
10. Japan applies a series of domestic s upport programs for various cereals, meats, vegetables 
and dairy products. Likewise, the country exports some of these products, such as rice and beef. 
Does the Japanese Government control the amount of products benefitting from these programs 
that are des tined to export? What is the export quantity of each of the benefited products in the 
past decade on a yearly basis?  
 
RESPONSE  
The domestic support programs for the said products in Japan are not implemented contingent 
upon export performance. Therefore, t he Government of Japan does not have the statistics on the 
quantity of the exported products that have benefited from the programs.  
11. It is described, in the Dispute Settlement DS76, information that Japan required US quarantine 
treatment for each variet y of a product. On 7 April 1997, the US requested consultations with 
Japan in respect of the prohibition, under quarantine measures, of imports of certain agricultural 
products. The US alleged that Japan prohibits the importation of each variety of a produ ct 
requiring quarantine treatment until the quarantine treatment has been tested for that variety, 
even if the treatment has proved to be effective for other varieties of the same product. The US 
alleged violations of Articles 2, 5 and 8 of the SPS Agreeme nt, Article XI of GATT 1994, and Article 
4 of the Agreement on Agriculture. After US complains and the negotiation in the Dispute 
Settlement Body (DSB) Japan changed this requirement. The DSB established a panel at its 
meeting on 18 November 1997 related t o this matter. The European Communities, Hungary and 
Brazil reserved their third -party rights. The Panel found that Japan acted inconsistently with 
Articles 2.2 and 5.6 of the SPS Agreement, and Annex B and, consequently, Article 7 of the SPS 
Agreement. Th e Appellate Body upheld the basic finding that Japan 's varietal testing of apples, 
cherries, nectarines and walnuts is inconsistent with the requirements of the SPS Agreement. On 
31 December 1999, Japan abolished the varietal testing requirement as well as  the "Experimental 
Guide" in accordance with the DSB 's rulings. In spite of this DSB ruling, Japan requires further 
studies to allow imports of each mango variety from Brazil, rather than considering the Mangifera 
indica species. Only Japan has this proced ure, which is not in line with the IPPC ' standards, nor WT/TPR/M/351/Add.1  
 
- 98 - 
 
  does it have technical and scientific justification. As a result, access to the Japanese market is 
limited to a few Brazilian mango varieties. In this regard, Brazil asks why Japan is not following 
the provisions of the WTO? In addition, why is Japan treating Brazil in a seemingly discriminatory 
manner in comparison to other members?  
 
RESPONSE  
The Government of Japan considers requirements in relation to imports pursuant to relevant 
provisions, includi ng Article 2 of the SPS Agreement, and applies the phytosanitary measures 
which do not arbitrarily or unjustifiably discriminate between Members where identical or similar 
conditions prevail to all countries and regions.  
The Government of Japan considers t hat the effectiveness of treatment against target pests may 
vary depending on the characteristics of the infested fruit of each variety. Therefore, the 
Government of Japan considers the effectiveness of treatment on variety basis according to 
relevant prov isions including Article VII of the IPPC. However, this does not apply to cases where it 
is recognized unnecessary to consider the difference of effectiveness of treatment on variety basis.  
Moreover, even in the cases where Japan 's current requirements for  phytosanitary treatment vary 
on variety basis, the Government of Japan has the intension to harmonize those requirements with 
international standards, if any relevant international standards exist, which indicates that it is not 
necessary to consider the difference of effectiveness of treatment between varieties, is adopted.  
 
WT/TPR/S/351 - 4.1.2.3.4 Fruits and vegetables  
12. Japan tariff classification for orange juice (HS 2009) does not seem to follow the World 
Customs Organization (WCO) standards: "Frui t juices (including grape must) and vegetable juices, 
unfermented and not containing added spirit, whether or not containing added sugar or other 
sweetening matter." More specifically, WCO uses "Brix value exceeding 20" or "Brix value not 
exceeding 20" to differentiate the percentage of sugar/sucrose in the orange juice and thus define 
the duty to be applied. Japan is applying a totally different standard that was not identified in any 
other WTO Member schedule. Japan´s sucrose threshold is 10% of sucrose, instead of the 20% 
Brix value established by the WCO.  
Japan' s Schedule:  
HS 2009.11 -210: Orange juice, frozen, not containing added sugar, not more than 10% by weight 
of sucrose: AVD 21.3% on CIF  
HS 2009.11 -290: Orange juice, frozen, not containing added su gar, n.e.s.: AVD 25.5% on CIF  
As Brazil´s natural orange juice contains sucrose above 10% (although lower than 20%), it pays a 
higher tax (25.5%); whereas orange juices with artificial contents/processes to reach less than 
10% sucrose pay a lower tariff ra te (21.3%).  
Natural Orange juice does not contain sucrose below 10%. A report performed by a Japanese Port 
Authority ("Verification of Fruit Juice Authenticity in the European Union and Japan, By Takahiro 
IWAMURA and Mikio FURUNO -NIPPON JUICE TERMINAL K.K. ") concluded that: "In Japan, as shown 
in these authenticity evaluations, the fact that in recent years there has been an increase in the 
supply of concentrated orange of less than 10% sucrose is a consequence of different import tariff 
rates for items con cerning sugar that do not exist in Europe or the United States. Concentrated 
orange juice that is stored at low temperatures does not invert easily, but the intentional, unique 
handling at the import source can cause a change relatively easily, resulting i n a sucrose rate of 
less than 10% from normal values of 20 to 25%. This type of processing camouflages food 
adulterations and can invite a loss of fruit authenticity and degradation of quality. In order to 
prevent such food adulteration, it is necessary to  eliminate differentiations in sucrose volume."  
Therefore, Brazil would like to know why Japan chose the 10% sucrose threshold instead of the 
standard 20% Brix for the tariff -duty difference and what is the  scientific basis for this.  
 
RESPONSE  
The Governm ent of Japan has applied the tariff schedules for orange juice with the boundary of 
10% sucrose content based on the schedule as a result of the UR negotiations . 
 
WT/TPR/S/351 4.1.2.3.6 Livestock products  
13. Brazil would like to receive further informatio n about the animal fat sector in Japan. As a 
competitive exporter of animal fat, Brazil is aware that Japan imports a reasonable quantity of 
animal fat and would like to know which regulations should be fulfilled to allow exports from Brazil 
of Animal Fat.  
 
RESPONSE  
1. Animal health  WT/TPR/M/351/Add.1  
 
- 99 - 
 
  In general, animal fat is allowed to be imported to Japan from countries between which 
Animal Health Requirements (AHRs) for fresh meat to be exported to Japan is established, if 
the fat satisfied the AHRs.  
In the case of Brazil, t he Animal Health Requirements for fresh pork to be exported from the 
Santa Catalina, Brazil to Japan (AHRs) is established. Therefore, animal fat derived from pigs 
can be imported to Japan if it fulfills the above AHRs.  
 
If the fat is purified and turned t o processed products such as lard, it could be classified as out 
of the scope of Animal Quarantine, as a result of inspection by Animal Quarantine Service of 
Japan. In that case, no requirements are imposed on the product from an animal health point 
of vie w. 
 
Food Safety  
Those who wish to import food, including Animal Fat  for human consumption for sale, or for 
use in their business, are required to meet the Food Sanitation Law. For details of the 
procedure for importation, please refer to the following URL;  
http://www.mhlw.go.jp/english/topics/importedfoods/1.html . 
 
From the view of BSE countermeasures, fat from cattle are required to fulfill certain conditions, 
such as age restrictions on cattle that are derived from 48 months of age or younger, and removal  
of SRMs. Therefore, individual bilateral consultations are necessary for the import.  
 
III TRADE POLICY AND PRA CTICES BY MEASURE  
Page 39 (Para 3.40) and page 40 (Para 3.42)  
 
The Secretariat Report, quoting the authorities, states that the Ministry of Fina nce establishes an 
investigating team composed of officials from the offices of MOF and METI and from the Ministry in 
charge of the relevant industry, but the Japanese Investigation Authority (JIA) consists of the 
MOF's Office of Trade Remedy Affairs and t he METI's Office for Trade Remedy Investigations only. 
Later on, it is mentioned that the Minister of Finance, the Minister in charge of the relevant 
industry and the Minister of Economy, Trade and Industry must jointly make a decision to initiate 
an inves tigation, but no reference is made to the decision -making process related to the final 
determinations.  
 
Questions : 
 
1. Is there a fixed number of officials of each Ministry for each investigation or the MOF has 
discretion to determine the size of the team and  who will take part of it?  
 
 
RESPONSE  
The size of an investigating team is decided for each investigation through consultation among 
MOF, METI, and the Ministry having jurisdiction over the relevant industry in Japan. Members of 
the team are also decided u pon by each Ministry for each investigation.  
 
2. What is the role each member performs in an investigation? Is there any sort of 
specialization according to the Ministry?  
 
RESPONSE  
In general, MOF is involved in an investigation from the perspective of the M inistry in charge of 
customs and tariff policy, METI is involved from the perspective of the Ministry in charge of trade 
policy, and the Ministry having jurisdiction over the relevant industry is involved from such 
perspective as impact on its responsible industry  
 
3. What is the implication  for the Ministry in charge of the relevant industry  of not being 
officially part of the JIA?  
 
RESPONSE  
Officials from the Ministry having jurisdiction over the relevant industry in Japan also make up an 
investigating team  
 
 WT/TPR/M/351/Add.1  
 
- 100 - 
 
   
4. What is the decision -making process for a final determination? Is it necessary a consensus 
among the Ministers?  
 
RESPONSE  
In accordance with the Article 18 in of the Cabinet Order relating to Anti -Dumping Duty, the 
Minister of Finance, the Minister having jurisdiction over the relevant industry and the Minister of 
Economy, Trade and Industry always maintain a close contact with each other with regard to the 
investigation and make a determination, after consultations among them. The final determinatio n 
to impose an anti -dumping duty is issued as a Cabinet Order.  
 
III TRADE policy AND PRACTICES BY MEASURE  
Page 40 (Para 3.42)  
 
According to the Article 8(5) of the Law, there would be three scenarios that would justify the 
initiation of an investigation:  i) when the Government considers it necessary; ii) when an 
application for investigation has been submitted; or iii) when there is sufficient evidence.  
 
Questions:  
 
5. Does that mean that, if the Government considers it necessary, an investigation could be 
initiated even if there is no sufficient evidence?  
 
RESPONSE  
No. As is prescribed in paragraphs 4 and 5 of Article 8 of the Customs Tariff Law, sufficient 
evidence is required for the initiation of an investigation  
 
6. Has this situation already happened?  
 
RESPONSE   
As is mentioned in the answer to Q18, sufficient evidence is required for the initiation of an 
investigation. Japan has never initiated an investigation under the situation where there is no 
sufficient evidence.  
 
 
III TRADE policy AND PRACTICES B Y MEASURE  
Page 40 (Para 3.46)  
 
A domestic industry may file an application for a review no later than one year prior to the expiry 
date. The Government initiates an investigation upon the filing of an application or with sufficient 
evidence of continuatio n or recurrence of dumping and injury after the expiry of the measure.  
7. What is the deadline for the initiation of a review after the filing of an application?  
 
RESPONSE  
The decision on whether to initiate the investigation of a review should be made within  
approximately two months from the date of the filing of an application.  
(AD Guideline 6.(1))  
 
8. What is the deadline for the termination of a review?  
 
RESPONSE  
The investigation of a review shall be concluded within one year after the date of its initiati on. 
However, the period for a review may be extended if deemed necessary due to special reasons.  
(Article 8 (23) of the Customs Tariff Law that is applied mutatis mutandis  pursuant to Article 8 
(28) of the same law.)  
 
III TRADE policy AND PRACTICES BY MEA SURE  
Page 41 (Para 3.51)  
The Report states that "if imports of a particular product increase and cause (or threaten to cause) 
serious injury on the domestic industry that produces the like (or directly competing) products as a 
result of a decline in the p rice in a foreign country (or of unforeseen developments of  
 WT/TPR/M/351/Add.1  
 
- 101 - 
 
   
circumstances), the Government may impose an emergency duty upon all specified products to be 
imported during the specified period, or upon such a product to be imported exceeding a certain 
level of quantity or value in addition to ordinary customs duty".  
 
Questions:  
9. Does the expression "decline in the price in a foreign country" mean that Japan may apply 
general safeguards based on GATT Article XIX due to prices practiced by a single origin?  
 
RESPONSE  
The Government of Japan may apply safeguard measures if imports of a particular product 
increase as a result of a decline in the price abroad and cause (or threaten to cause) serious injury 
on the domestic industry  
 
10. Does Japan consider that, in o rder to justify the application of a safeguard measure, it is 
sufficient to occur either a decline in the price in a foreign country or an unforeseen development 
of the circumstances? Would it be possible to apply a safeguard measure if only the decline in  the 
price in a foreign country took place, but not the unforeseen development of the circumstances?  
 
RESPONSE  
The Government of Japan Japan considers that unforeseen developments of circumstances must 
occur in order to apply safeguard measures. It would n ot be possible to apply safeguard measures 
if no unforeseen development of the circumstances were observed  
 
11. According to Japan's legislative framework, is it possible to apply a definitive safeguard 
measure in the form of an exclusively quantitative restri ction?  
 
RESPONSE  
Under Japan's legislative framework, it is possible to apply a definitive safeguard measure, in the 
form of an exclusively quantitative restriction.  
 
12. What are the periods considered for analyzing serious injury and increase in imports?  
 
RESPONSE  
Our past investigation covered five years. However, there is no fixed time -period for analyzing 
serious injury and increase in imports in Japan's legislation.  
 
13. In order to comply with Article 9.1 of the Agreement on Safeguard, which WTO Members are 
considered by Japan as developing countries?  
 WT/TPR/M/351/Add.1  
 
- 102 - 
 
  RESPONSE  
The Government of Japan considers that, as in the Notification G/SG/N/11/JPN/1, developing 
countries are those Members of the WTO to which preferential tariff treatment is provided by 
Japan or those Members of the WTO which are designated as least -developed countries by the 
United Nations  
 
14. In order to comply with Article 9.1 of the Agreement on Safeguard, what is the period 
analyzed by Japan to verify which share of imports developing countries accoun t for, individually 
and collectively?  
 
RESPONSE  
The period for analyzing the developing countries' share of imports is decided on a case -by-case 
basis, in accordance with WTO agreements.  
 
15. According to Japan's legislation, is it possible to exclude from the  scope of the safeguard 
measure certain Members of the WTO (especially those who are part of a free trade area or a 
custom union with Japan)?  
 
RESPONSE  
In Japan's legislation, there is no provision to exclude certain Members of the WTO, except for 
developi ng countries whose share of import is very small, from the scope of general safeguard 
measures.  
 
 
13. INDONESIA  
SECRETARIAT REPORT  
 
Summary  
 
Page 10 Para 9  
"Japan's overall simple average applied MFN tariff rate increased from 5.8% in FY2014 to  6.1% in 
FY2016 due to higher average ad valorem  equivalents of non -ad valorem  duties. Of the 
101 highest tariffs, 95 had non ad valorem  rates. The simple average applied rate is 16.3% (up 
from 14.9% in FY2014) for agriculture (WTO definition), and 3.6% for non -agricultural products 
(down from 3.7% in FY2014). Japan has bound 98.2% of its tariff (159 lines are unbound). The 
difference between the average bound MFN tariff (6.2%) and the average applied MFN tariff 
(6.1%) continues to be negligible in FY2016; this refle cts a high degree of predictability in the 
tariff. However, the average bound rate remains considerably higher for agricultural products 
(16.7%) than for non -agricultural products (3.6%). Japan makes use of tariff quotas; there are 
158 tariff lines (1.7%) subject to MFN out -of-quota tariffs, of which 11 are under state trading. 
The quota allocation method and process remains somewhat intricate; procedures for the 
allocation of tariff quotas have remained unchanged since 2014."  
 
Question:  
1. Would the Governmen t of Japan please inform us the reason for increasing non -ad valorem  
duties?  
 
RESPONSE  
Although it is not clear how "non -ad valorem  duties" mentioned in the secretariat report were 
calculated, the Government of Japan had not changed specifi c duty rates fr om FY2014 to FY 2016. 
Decreases in import unit values may have led to increase the valorem equivalent rates.  
 
2. Japan imposes tariff quotas for 158 products. Please inform us the list of the said products.  
 
RESPONSE  
Although 158 products mentioned in the secr etariat report are not clear to us, in Japan tariff 
quotas are imposed on some of the products that belong to the following product groups: malt, 
natural cheese, corn, food preparations containing cocoa, tomato puree and tomato paste, 
pineapples (in airtig ht containers), hides, skins and leather, footwear of leather, skimmed milk 
powder, evaporated milk, whey, butter and butter oil, prepared edible fats and oils, other dairy WT/TPR/M/351/Add.1  
 
- 103 - 
 
  products, dried leguminous vegetables, starches, inulin and food preparations mostl y containing 
starch, ground -nuts, tubers of Konnyaku and silk -worm cocoons and raw silk.  
 
Page 9 Para 9  
"In January 2016, the Bank of Japan (BOJ) decided to introduce a framework of quantitative and 
qualitative monetary easing (QQE) with a negative interes t rate. This framework extends the QQE 
that was introduced in April 2013, with a view to achieving the price stability target of 2%."  
 
Question:  
3. Please share Japan 's experience with negative interest rate policy and its impact on Japan 's 
trade performance?  
 
RESPONSE  
In April 2013, the Bank introduced an unprecedented large -scale monetary easing, quantitative 
and qualitative monetary easing (QQE), in order to achieve a price stability target of 2 per cent at 
the earliest possible time. The main transmission mechanism of QQE is lowering the real interest 
rates by: (1) exerting downward pressure on the interest rates across the entire yield curve, 
through massive purchases of Japanese government bonds (JGBs), and (2) raising people's 
inflation expectations thro ugh the Bank's strong and clear commitment. Thereafter, the Bank has 
pursued further monetary easing as appropriate; it expanded QQE in October 2014, followed by 
the introduction of a negative interest rate policy in January 2016. Thanks to a series of pow erful 
monetary stimulus measures, Japan's economy has improved significantly during a period of more 
than three and a half years. The excessive appreciation of the yen has been corrected and stock 
prices have increased substantially. Corporate profits have  marked historical high levels, and 
business fixed investment has recovered. With regard to the employment and income situation, 
the unemployment rate has declined to as low as 3 per cent, which is virtually full employment, 
and wages have continued to ris e moderately. On the price front, Japan's economy is no longer in 
deflation, which is commonly defined as a sustained decline in general prices, although there 
remain some effects on inflation, due to a significant fall in crude oil prices.  
That being said , in the first half of 2016, private consumption showed relatively weak 
developments according to some indicators, mainly reflecting the negative wealth effects 
stemming from the decline in stock prices and the deterioration of consumer sentiment. As for 
business activity, exports and industrial production remained sluggish, reflecting the effects of the 
slowdown in emerging economies and the yen's appreciation, as well as supply -side constraints 
that were mainly due to the Kumamoto Earthquake. Against this  backdrop, the momentum of price 
increases slowed moderately. However, recent economic indicators suggest that the economy has 
been improving. An increasing number of indicators suggest a pick -up in private consumption. For 
example, the consumption activit y index (CAI) -- which is calculated by compiling various sales 
and supply -side statistics -- has been increasing steadily in recent months, after showing 
weakness in the first half of 2016. Various surveys on consumer confidence, including the 
Economy Wat chers Survey, have been improving. Looking ahead, private consumption is likely to 
increase moderately, as the employment and income situation continues to improve steadily. 
Regarding employee income, the labor share in the aggregate output has been on a d eclining 
trend in recent years, being below the long -term average, with corporate profits staying at high 
levels. Meanwhile, a variety of indicators for the labor market -- such as the unemployment rate, 
the active job openings -to-applicants ratio, and the  diffusion index (DI) for employment conditions 
in the Tankan (Short -Term Economic Survey of Enterprises in Japan) -- suggest that the labor 
market conditions have tightened. Thus, the conditions for wage increases largely have been met. 
Wages are labor co sts for individual firms. From the macroeconomic viewpoint, however, they are 
employee income, which is the source of households' purchasing power. As wages and employee 
income rises on a sustainable basis, private consumption will be firmer. With regard t o business 
activity, Japan's exports and production have increased recently, on the back of recovery in 
demand from emerging economies that I've mentioned.  
 
References: A New Phase of the Global Economy and Challenges Facing Japan's Economy, Speech 
at the Meeting of Councillors of Nippon Keidanren (Japan Business Federation) in Tokyo (December 
26, 2016)  
http://www.boj.or.jp/en/announcements/press/koen_2016/data/ko161226a1.pdf . 
 WT/TPR/M/351/Add.1  
 
- 104 - 
 
  3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Import s 
3.1.5 Import Prohibitions, Restrictions, Licensing, and Quotas  
 
Page 38 Para 3.34  
"Japan uses quantitative restrictions on import (import quotas); according to the authorities, the 
quotas adhere to the WTO Agreements. Products subject to import quotas (u nchanged since 2007) 
include: certain fish products and controlled substances listed in the Montreal Protocol on 
Substances that Deplete the Ozone Layer."  
 
Question:  
4. Could Japan please further explain that the restriction does not violate any WTO provisio ns? 
 
RESPONSE  
Japan 's import quota administration system is consistent with the 1994 GATT (Articles XI 2(c) and 
XX (g)), and was notified to the WTO . 
 
5. Would Japan please elaborate more about the quota arrange ments for the last three years?  
 
RESPONSE  
The im port quota system is fully described, in Japanese, in the Official Bulletin of Economy, Trade 
and Industry, METI website etc. Outlines of the system are described, in English, in the WTO 
document G/LIC/N/3/JPN/15. The Government of Japan will continue to i mplement this system in 
an appropriate manner.  
 
6. Is there any country -specific import quotas?  
 
RESPONSE  
Most of import quotas are applied globally and are not country -specific. With regard to some 
products, such as laver, in which interests are limited to s pecific exporting countries, 
country -specific quotas are applied in addition to global quotas.  
 
3.3 Measures Affecting Production and Trade  
3.3.6 Standards and Other Technical Requirements  
 
Page 58 Para 3.122  
"The main laws on standards and technical regul ations in  Japan, together with the agency 
responsible, are described in Table 3.18. The main changes in these basic laws since the last 
review include the entry into force of the Food Labelling Act, which merged some food labelling 
provisions that had prev iously been scattered across three separate laws ( the Food Sanitation Act, 
the Law Concerning  Standardization and Proper Labeling of Agricultural and Forestry Products 
(JAS Act), and the Health Promotion Act ) into one single act.  The Act entered into force  on 
1 April 2015. As a consequence, the JAS law, deprived of its food labelling provisions, has been 
renamed the Law concerning Standardization of Agricultural and Forestry Products by an 
amendment. The main changes also include the amendment in 2015 of th e 1960 Law on Securing 
Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices, which 
transferred the authority to issue licences to specially controlled medical device sellers from 
prefectures to designated cities and specif ied districts. The Building Standard Law was amended in 
2014, including the revision of standards concerning wooden buildings, and a review of the 
conformity assessment system for structural calculation and the system for smooth introduction of 
new technol ogies."  
 
Question:  
7. Please give us more information concerning the Food Labelling Act, including provision on 
food and feed additives as well as the kind of information that should be stated on the label.  
 
RESPONSE  
The rule of food labelling is provided by the Food Labelling Standards (Ordinance of the Cabinet 
Office No.10 of 2015), which is based on the Food Labelling Act (Act No. 70, 2013). Feed additives 
are not covered by the Food Labelling Act.  
* Food Labelling Standards(only Japanese)  
http://www.caa.go.jp/foods/pdf/150320_kijyun.pdf . WT/TPR/M/351/Add.1  
 
- 105 - 
 
  Page 64 Table 3.20  
 
Legislation/Agency  First 
passed  Last 
amended  Purpose  
Food Sanitation Act  
MHLW, Consumer 
Affairs Agency  1947 2015 Applies to food  and additives, and containers and packaging.  
The Act provides for the setting and application of standards 
on food and food additives as well as inspections of 
establishments by the Ministry of Health, Labour and 
Welfare.  
 
Question:  
8. Please give us more i nformation concerning the inspections of establishment. Is it 
mandatory? Will the inspections be conducted before or after certain imported food products enter 
Japan 's market?  
 
RESPONSE  
Inspection of establishments, implemented by the Ministry of Health, Labour and Welfare (MHLW), 
is not required by the Food Sanitation Act, but there are the following on -site inspections of 
establishment conducted by the MHLW in the exporting country. These are carried out as 
necessary, and as the result of consultation an d agreement between two countries.  
2. Confirmation of Export Verification (EV) program related to BSE of beef destined for Japan.  
2. On -site investigation of abattoirs of meat and poultry, to confirm that the processing process is 
carried out in a sanitary m anner, based on the standards in the exporting country equal to or 
better than those in Japan.  
3. On -site audit after a food safety incident occurs,  
4. A system survey to prevent the occurrence of food safety problems in advance.  
 
3.3.9 Government Procure ment  
 
Page 70 Para 3.167  
"There have been no modifications to the open tendering rules or their exceptions since 2014. 
With regard to the procedures of central government entities, a specific contractor may be selected 
under the single tendering contract m ethod if, inter alia, the nature or objectives of the 
procurement do not allow competition, or competition is not possible or is disadvantageous to the 
government because of the urgent nature of the contract, or the contract value is small, in 
accordance w ith clause 4 or 5 Article 29.3 of the Accounts Law. The authorities state that single 
tendering corresponds to limited tendering in the GPA."  
 
Question:  
9. Please provide further information how to determine the specific contractor that subject to 
single tend ering contract?  
 
RESPONSE  
Single tendering is operated within the scope of the provision of Article X Ⅲ(Limited Tendering) of 
the GPA, and in accordance with clauses 4 and 5 of Article 29.3 of the Accounting Law, Articles 99, 
99.2 and 99.3 of the Cabinet Order on Budget, the Settlement of Account and Accounting, and 
Articles 12 and 13 of the Cabinet Order Stipulating the Special Procedures for Government 
Procurement of Products or Specified Services by the Central Public Entity.  
 
10. Is there any specific threshold to determine contract value? If yes, how much value which 
considered as small?  
 
RESPONSE  
In the c ase of a purchase contract made by single tendering, as long as the price offered by a 
contractor is within "expected price" as stipulated in Articles 80 and 99.3 of Cabinet Order on 
Budget, there is no lower limit for buyout price  
 WT/TPR/M/351/Add.1  
 
- 106 - 
 
  4 Trade Policies in Sel ected Sectors  
4.1 Agriculture  
4.1.2 Agricultural Policies  
4.1.2.3 Domestic Support  
4.1.2.3.5 Tobacco  
 
Page 95 Para 4.35  
"Importers, wholesalers, and retailers of cigarettes are required to register with the Minister of 
Finance who must approve final retail  prices. Although tobacco products are subject to excise 
duties, some brands, all owned by Japan Tobacco, are subject to lower rates."  
 
Question:  
11. Please inform us the reason for imposing lower excise duties only for some brands owned by 
Japan Tobacco ? 
 
RESPONSE  
A preferential tax rate for tobacco has been applied to six brands owned by Japan Tobacco. These 
brands had been sold at lower price as "third class cigarette" under the fiscal monopoly on 
tobacco, abolished in 1985, and low-income earners, especiall y elderly persons, were more likely 
to smoke  these cigarettes . Considering this situation , the tax rate for former these third class 
cigarettes was set lower than the rate for other cigarettes as a temporary measure, when tobacco 
tax was introduced instead  of monopoly profits .  
In order to ensure compliance with the provisions concerning "national treatment" , the preferential 
tax treatment for former third class cigarettes will be phased out from April 2016, as part of the 
"FY2015 Tax Reform". The details o f implementation is as below.  
　（Note）The above rate is a total tax rate of tobacco tax, supecial tobacco tax, prefectural tobacco tax and municipal tobacco tax.6,812yen/1,000pcs7,812yen/1,000pcs9,312yen/1,000pcs12,244yen /1,000pcs
4,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,000
27 28 29 30 31 32Difference
6,432yen/1,000pcs
（128.64yen/pack ）Other cigarettes
Former third class cigarettes（Yen/1,000pcs ）
Phasing out the Preferential Tax Treatment for Former Third Class Cigarettes
+1,000yen/1,000pcs （20yen/pack ）12,244yen/1,000pcs
（244.88yen/pack ）
5,812yen/1,000pcs
（116.24yen/pack ）
2015.4.1 2016.4.1 2017.4.1 2018.4.1 2019.4.1+1,500yen/1,000pcs （30yen/pack ）+2,932yen/1,000pcs
（58.64yen/pack ）
+1,000yen/1,000pcs （20yen/pack ）
 
 
 
4.2 Fisheries  
 
Page 99 Para 4.52  
"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 total allowable catches (TACs) which apply to some of these species. " 
 WT/TPR/M/351/Add.1  
 
- 107 - 
 
  Question  
12. Please elaborate more on the reason for imposing import quotas for the said species, 
including the relation between the import quotas with management of coastal fisheries resources?  
 
RESPONSE  
Quantitative import restrictions (import quotas) play an important role in the conservation and 
management of fishery resources in waters adjacent to Japan. The import quotas complement 
fisheries management measure s such as total allowable catch (TAC) system, which manages catch 
of each fish species.  
 
13. Could Japan further explain the allocation arrangement for the import quota on those species?  
 
RESPONSE  
The allocation arrangement is fully described, in Japanese, in the Official Bulletin of Economy, 
Trade and Industry (Keizai Sangyo Koho) and the JETRO News (Tsusho Koho), as well as the METI 
website. Outline of the allocation arrangement is described in English in the WTO document 
G/LIC/N/3/JPN/15 . 
 
14. Please explain the  end-use restrictions which apply to the quota allocations?  
 
RESPONSE  
Supposing that the "end -use restrictions" means restrictions on usage of the imported products by 
food companies. For example, direct selling to consumers or supply to food processors, t here is no 
end-use restriction that applie to quota allocations for fishery products.  
 
 
GOVERNMENT REPORT  
 
2 Trade and Environment Policy  
 
Page 2 Para 2.2  
"While committed to the multilateral trade negotiations, Japan is also pursuing the conclusion  of 
Economic Partnership Agreements (EPAs) , both bilateral and regional,  and plurilateral trade 
agreements. The negotiations of EPAs and plurilateral agreements will enhance the transparency 
of the respective member country's economic policy and reinforce the com petitiveness of its 
industr ies, which will bring about positive impacts on the multilateral trade negotiations. Japan 
also has in mind that we should assess the possibility of reflecting the outcomes of the bilateral 
and plurilateral initiatives in the mul tilateral trading system."  
 
Question:  
15. Would Japan please share the reason and possible future of Japan 's participation in Trans -
Pacific Partnership (TPP)?  
 
RESPONSE  
The TPP Agreement is intended to establish new common rules for the 21st century in the Asi a-
Pacific region, and to form a huge free and fair economic zone. It also seeks to deepen and 
broaden economic ties among countries and regions that share fundamental values such as 
freedom, democracy, basic human rights, and the rule of law, and is hence strategically significant 
in terms of pursuing further regional stability.  In light of the significance of the TPP, the 
Government of Japan notified the depositary of the completion of Japan 's domestic procedures for 
the TPP. The Government of Japan intend s to continue to tenaciously encourage other original 
signatories to promptly complete their domestic procedures toward the entry into force of the TPP 
Agreement.  
 
16. Would Japan please share its view on the on -going Indonesia – Japan Economic Partnership 
Agreement?  
 
RESPONSE  
As confirmed by Prime Minister Abe and President Joko under the "Japan -Indonesia Joint 
Statement on Strengthening Strategic Partnership", dated January 15, 2017, the Government of 
Japan believes that the Japan -Indonesia Economic Partnersh ip Agreement (JIEPA) plays an 
important role in promoting trade and investment relations between both countries.  WT/TPR/M/351/Add.1  
 
- 108 - 
 
  17. Would Japan consider to conduct a joint review of Indonesia – Japan Economic Partnership 
Agreement, including on market access of certain agric ultural and fishery products, plywood, as 
well as certain food and beverages products?  
 
RESPONSE  
Japan and Indonesia are currently discussing the way forward regarding the General Review of the 
Japan Indonesia Economic Partnership Agreement (JIEPA), includ ing market access of products 
that are subject to renegotiation under JIEPA  
 
Page 4 Para 2.3  
"Japan is currently a party to sixteen  EPAs. Through the "Japan Revitalization Strategy" issued  by 
the Government in June 201 3, Japan is committed to increasing th e FTA coverage ratio to 70% by 
2018 from the current figure of 39.5 %. Regional trade agreements and multilateral trading system 
under the WTO should complement one another and Japan believes that these regional 
agreements will serve as building blocks to a chieve higher trade liberalization at the multilateral 
level."  
 
Question:  
18. Please elaborate more on the reason to increase Japan 's participation in FTAs.  
 
RESPONSE  
In face of rising protectionism, and inward -looking mindsets in the world, Japan believes tha t a 
free and open economy can be the cornerstone of peace and prosperity, and that free and fair 
trade can bring about "inclusive growth" to all nations and people. In order to maintain and 
enhance the free trade system in the Asia Trans -Pacific region and  in the entire world, Japan will 
strive to maintain and strengthen the rule -based multilateral trading system, with the WTO as its 
core. At the same time, Japan will continue to make efforts to promote high -level FTAs, including 
the TPP, the Japan -EU EPA, and the RCEP.  
 
19. Please kindly inform us the possible future of Japan 's participation in Regional 
Comprehensive Economic Partnership (RCEP).  
 
RESPONSE  
It has become even more important to develop common rules for free and fair trade and 
investment amid growi ng protectionism worldwide. The Government of Japan continues to 
promote negotiations of the RCEP vigorously towards the early conclusion of a high -quality 
agreement  
 
 
Japan Domestic Policies  
4.4 Agricultural Reform  
 
Page 16 Para 4.14  
"Furthermore, the gov ernment established "the Plan for Empowering Export on Agriculture, 
Forestry, and Fisheries" in May 2016, in order to promote Japanese agricultural, forestry, and 
fishery products, and food in global market.  
 
Question:  
20. Would Japan please provide further de tails regarding the Plan (its objectives, process, effect, 
and future arrangements), particularly related to agriculture and fisheries products?  
 
RESPONSE  
The new plan was established to support agricultural, forestry, fishery and food businesses in 
severa l measures, for examples:  
- to consolidate overseas market information and provide them through the Japan External Trade 
Organization (JETRO)  
- to enhance the consulting and advice systems of JETRO and MAFF  
- to implement effective promotion events in coll aboration with chefs and overseas Japanese 
restaurants  
- to improve the domestic export -related procedures, such as the issuance procedures for various 
certificates  WT/TPR/M/351/Add.1  
 
- 109 - 
 
  - to establish a system to guarantee the quality and special features of Japanese products to 
overseas consumers and businesses.  
Through implementing each measure included in the plan, the Government of Japan aims to 
accomplish its national goal of export value which is target to 1 trillion yen for 2019.  
 
21. Would Japan please explain how much supp ort will be provided to agriculture and fisheries 
sectors in regard to enhance its competitiveness?  
 
RESPONSE  
The Ministry of Agriculture, Forestry and Fisheries (MAFF) has made financial support for JETRO 
which is the official agency responsible for promo ting export and the main implementation body of 
promotion measures included in the plan. The total value of support for JETRO is 1.2 billion yen in 
FY2016 . 
 
 
ADDITIONAL QUESTIONS  - INDONESIA  
SECRETARIAT REPORT  
Summary  
 
Page 10 Para 9  
"Japan's overall simpl e average applied MFN tariff rate increased from 5.8% in FY2014 to  6.1% in 
FY2016 due to higher average ad valorem  equivalents of non -ad valorem  duties. Of the 101 
highest tariffs, 95 had non ad valorem  rates. The simple average applied rate is 16.3% (up f rom 
14.9% in FY2014) for agriculture (WTO definition), and 3.6% for non -agricultural products (down 
from 3.7% in FY2014). Japan has bound 98.2% of its tariff (159 lines are unbound). The difference 
between the average bound MFN tariff (6.2%) and the averag e applied MFN tariff (6.1%) 
continues to be negligible in FY2016; this reflects a high degree of predictability in the tariff. 
However, the average bound rate remains considerably higher for agricultural products (16.7%) 
than for non -agricultural products (3.6%). Japan makes use of tariff quotas; there are 158  tariff 
lines (1.7%) subject to MFN out -of-quota tariffs, of which 11 are under state trading. The quota 
allocation method and process remains somewhat intricate; procedures for the allocation of tarif f 
quotas have remained unchanged since 2014."  
 
Question:  
1. Would the increase of MFN tariff rate  affect  the GSP beneficiaries?  
 
RESPONSE  
 
2. Regarding the application of tariff quotas, please provide further explanation how the quota 
applied or its scheme.  
 
RESPONSE  
The administrating method is determined based on the characteristics of each product. The 
method of quota allocation and its administration are pub licly announced through the 
WTO notifications and the Government 's website, and are fair and transparen t.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
3.1.1.1 Transparency and legal framework  
 
Page 28 Para 3.1  
Japan customs, under the Ministry of Finance, continues to admini ster and enforce customs 
legislation. Custom and tarif policies are formulated by the customs and tariff Bureau of te 
Ministry. Japan has nine regional Customs Offices. The main laws and regulations governing 
customs procedures for imports and exports are the custom law No. 61 of 1954, as last amended 
on 31 MArch 2016; The Cabinet order No 150 of 1954 (order for enforcement of the customs law), 
as last amended on 31 March 2016; and the Ordinance of the Ministry of Finance (Ordinance for 
Enforcement of the c ustoms law) No. 31 of 1996, as last amended on march 2016. Japan's applied 
rates of duties and taxes imposed on or connection with importation are published in the WT/TPR/M/351/Add.1  
 
- 110 - 
 
  Goverment Gazette, in 2015, customs duties amounted to ¥1.05 trilion, around 2% of the centr al 
goverment revenue (general account).  
 
Question:  
3. Please  provide the details of amendement of custom laws and regulations.  
 
RESPONSE  
A. The main contents of the amendment of the Customs Law, the Order for Enforcement of the 
Customs Law, and Ordinance for Enforcement of the Customs Law in March 2016 are as follows.  
<Customs Law>  
(i) Strengthening customs enforcement （Addition of articles which infringe trade secret to the 
scope of "articles prohibited from importation and exportation " under the Customs Act ） 
(ii) Liberalization of customs offices to which import/export declarations can be submitted  
(1) Liberalization of customs offices to which import/export declarations can be submitted (only 
applicable to AEOs (Authorized Economic Operators))  
 (2) Eliminati on of territorial restriction on the business operation of customs brokers  
 
< The Order for Enforcement of the Customs Law, and Ordinance for Enforcement of the Customs 
Law >  
Japan Customs amended the Order for Enforcement of the Customs Law, and Ordinance  for 
Enforcement of the Customs Law in order to implement the revisions of the Customs Law as 
mentioned above.  
 
Page 29 Para 3.7  
"The Environmental Policy Division in METI for issues related to the Basel Convention; and The 
Waste Management and Recycling Department in the Ministry of the Environment and Local 
Environment Offices in each prefecture for environmental issues."  
 
Question:  
4. Does Japan have the green industry standard policy? If so, whether it is possible to do 
mutual recognition agreement (MRA) with Indonesia?  
 
RESPONSE  
In Japan, there is no green industry standard for the Basel convention  and the field of waste 
management and recycling.  
 
3.1.1.2 Fees and Formalities  
 
Page 29 Para 3.8  
A customs import declaration is needed for importation and mus t be accompanied by an invoice, 
bill of lading, insurance certificate, freight account and packing list. Additional documents may be 
necessary depending on the type of goods. Imports into Japan are held at customs designated 
bonded areas (known as hozei areas) at the ports of entry. Once the necessary inspection takes 
place and customs duties and taxes are paid, a Notice of Import Permit, an electronic document, is 
issued by Customs.  
 
Question:  
5. How long would it take to obtain the permit? Please also infor m us the requirements to 
obtain the permit as well as list of products which are required to have an import permit.  
 
RESPONSE  
According to the time release study conducted by the Government of Japan in March 2015, the 
average time taken to finish import p rocedures, from declaration to permission for maritime cargo 
was 2.4 hours, and that of air cargo was 0.5 hours. In principle, all imported products are subject 
to obtaining import permits by customs. To obtain an import permit, an importer must lodge an 
import declaration to customs that includes the following information on the products: their name, 
quantity, price, country of origin and port of loading, name and address of the sender of the 
products, name or registration number of the ship or aircraft th at transported the products, and 
location where the products are stored. Upon declaration, customs carries out documentary 
inspection and the necessary physical examination of the products before giving a permit.  
 WT/TPR/M/351/Add.1  
 
- 111 - 
 
  Page 29 Para 3.9  
There are no fees or char ges required by customs for an import declaration. Japan customs change 
fees for services rendered such as issuing certificates; granting permits for customs Manufacturing 
Warehouse there are no special registration requirements for importers and the use o f a customs 
broker is optional. the authorities indicate that, with the exception of some documents, 
photocopies are accepted.  
 
Question:  
6. Does the certificate similar to the import permit?  
 
RESPONSE  
The certificates as mentioned in the secretariat report, para 3.9 of page 29, are different from an 
import permit. Japan Customs issues such certificates as proof of certain activities of customs only 
upon the request of a requester who uses it for the requester 's own particular purpose. This 
certificate is not a prerequisite for obtaining an import permit. For example, a certificate is issued 
to prove that the requester obtained import permission from Japan Customs for certain goods in 
the past.  
 
7. What kind of certificates are being charged for services rendered by Japan Customs?  
 
RESPONSE  
Japan customs charges fees for issuing all kinds of certificates as mentioned in the answer to Q6  
 
8. Please provide further information regarding the certificates, including the list of products 
required and the time to process th e said certificate?  
 
RESPONSE  
There is no list of products that require the certificate, for the reasons as mentioned in our answer 
to Q6. As such, there is no data available for the time to process the certificate.  
Page 30 Para 3.10  
In the case of export s, an export declarations must be companied by supporting documents such 
as invoices, permits, approvals or lisences. Upon the arrival of the goods to the hozel area, 
exporters receive an export permit after the necessary physical examinitation of the good s are 
brought into the hozel area.  
 
Question:  
9. Is there any charges or fees for the exporters to conduct physical examination of the goods?  
 
 
RESPONSE  
There are no charges or fees paid to customs for physical examination of the goods conducted by 
customs.  
 
10. Which products need permit, approval, and license of export?  
 
RESPONSE  
The following products are the examples of those which need permission, approval or license by a 
government agency, other than customs, for their exportation: chemicals and other weapon s, 
drugs, CITES -listed items, certain hazardous waste.  
Please refer to the following website for more details;  
http://www.customs.go.jp/english/c -answer_e/extsukan/5501_e.htm . 
 
11. How long would it take to conduct physical examination of goods, to issue perm it, approval, 
and license?  
 
RESPONSE  
There is no such data available. In general, the time required for physical examination and 
issuance of a permit, approval or license may vary depending on various factors, such as the 
nature of the goods . 
 
 WT/TPR/M/351/Add.1  
 
- 112 - 
 
  3.1.1.3 Rel ease and clearance of goods  
Page 31 Box 3.1 Point 6  
"Japan has mutual recognition arrangements (MRAs) on AEO programmes with: Canada; the 
European Union; Hong Kong, China; the Republic of Korea; Malaysia; New Zealand; Singapore; 
and the United States. Unde r the MRAs, Japan Customs takes into account the status of the 
members of the other AEO programmes when conducting its own risk assessment. Japan is in 
consultations with China, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Ta ipei), and Switzerland on the possibility of having MRAs on AEOs."  
 
Question:  
12. Would Japan please inform us the procedures and requirements to set up a mutual 
recognition cooperation on authorized economic operator (AEO) programme?  
 
RESPONSE  
Before launchin g an MRA consultation, the Government of Japan takes into account various 
elements, such as economic relations with potential partners, and implementation record of AEO 
program by the partners, in a comprehensive manner.  
 
13. Please share Japan 's experience wi th the  implement ation of  AEO with partner countries , 
especially in industrial sector?  
 
RESPONSE  
The Government of Japan produced a leaflet to explain how to utilize AEO mutual recognition, and 
is distributing it to AEO companies.  
 
3.1.4.3 Preferential tari ff 
Page 36 Para 3.28  
Japan offers preferential tariff rates to 138 developing countries and 5 territories under the GSP; 
least developed countries (47 in 2016) receive additional preferences. China remains the largest 
beneficiary of preferential access to the Japanese market; it accounts for over two thirds of all 
preferential imports under the GSP scheme. Japan also grants preferential access under its 
RTAs/EPAs for imports from ASEAN, Australia, Brunei Darussalam, Chile, India, Indonesia, 
Malaysia, Mexico , Mongolia, Peru, Philippines, Singapore, Switzerland, Thailand, and Viet Nam as 
at 1 December 2016 (Section 2.3.2).  
 
Question : 
14. Please give us more explanation the consideration of Japan to give different GSP program for 
every countr y? What kind of product s and why Japan chooses those products?  
 
RESPONSE  
 
3.1.5 Import Prohibitions, Restrictions, Licensing, and Quotas  
Page 37 Para 3.30  
"Imports of certain goods are prohibited uder Article 69 -11 of Japan's customs law. Imports of 
narotics, certain weapons and  animals or plants listed in the appendices of the convention on 
International Trade in Endagered species of Wild Fauna and Flora (CITES) may be prohibited or 
subject into import licensing requirements for reason of national security, safeguard, customers 
health and well being, and preventing domestic plant are animal life and the environment. Japan's 
Foreign Exchange and Foreign Trade Act governs Import licensing procedures. In additional some 
commodities, Including certain fish, are subject to import quot as, underchanged since Japan's 
previous review."  
 
Question:  
15. Which products  are subject to import quotas?  
 
RESPONSE  
Products which are subject to import quotas are clearly described in the WTO document 
G/LIC/N/3/JPN/15. For your quick reference, the import quotas are applied to t he following 
products  
("ex" indicates that only a part of the heading is covered).  
 
 HS No .  Description of Goods  WT/TPR/M/351/Add.1  
 
- 113 - 
 
   ex 03.01  Herring, Cod, Yellow tail, Mackerel, Sardine, Horsemackerel,  
 ex 03.02  Saury, Roes of Cod and Niboshi (small  boiled and dried fish  
 ex 03.03  for seasoning), live, fresh, chilled, frozen, dried, salted or in brine  
 ex 03.04   
 ex 03.05   
 ex 03.07  Scallops, Adductors of shell -fish, Cuttle -fish and Squid  
(excluding "Mongo ika")  
ex 12.12  Edible Seaweeds and its food  preparations  
 ex 21.06   
 
 
16. Please explain the arrangement of how Japan determines the quota.  
 
RESPONSE  
The size of quota shall be determined, taking into account the balance of domestic supply and 
demand on a one -year basis  
 
17. What are the requirements to o btain import permit for products that subject to quota?  
 
RESPONSE  
In principle, importers need to meet any of the following three conditions to be qualified for 
application:  
(1) an importer who has experience of obtaining certificate of import quota and of  importing the 
items based on the certificate of import quota;  
(2) an importer who imports materials for food processing with orders from seafood processors ' 
associations which are admitted by Fisheries Agency; or  
(3) an importer who has experience of impo rting foods and imports items subject to import quota 
with a planned manner.  
Each quota has its own criteria and requirements on the application, and the quantity of each 
quota allocation is determined fairly according to the applicant 's import experience  basically.  
Please refer to the import quota announcements of marine products which explain in detail the 
standards and procedures to obtain the import quotas, published on the following METI Website.  
http://www.meti.go.jp/policy/external_economy/trade_co ntrol/03_import/04_suisan/importquota.
html. (Japanese only)  
 
Page 38 Para 3.34 to Para 3.36  
"Japan uses quantitative restrictions on import (import quotas); according to the authorities, the 
quotas adhere to the WTO Agreements. Products subject to import q uotas (unchanged since 2007) 
include: certain fish products and controlled substances listed in the Montreal Protocol on 
Substances that Deplete the Ozone Layer."  
 
"The ministry of Economy, Trade and Insudtry (METI) is rensponsible for administering the im port 
quota system. Eligible importers are issued with an import quota allocation certificate. 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 b asis. Fish -related quotas are 
alocated 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 
Finisheris (MAFF). Applicants for quota allocations must meet various criteria. Some quotas are 
allocated on a first -come first -reserved basis. When the amount applied for exceeds the remaning 
unallo cated quota, quotas are allocated by lottery."  
 
"Unused import quota allocation entitlements are non -transferable and cannot be carried over to 
the next period. Additionally, the Goverment does not ressiue certificates for unused quotas."  
 
Question:  
18. Would Japan please give us further information  regarding the lottery  system to arrange the 
unallocated quota.  
 WT/TPR/M/351/Add.1  
 
- 114 - 
 
  RESPONSE  
The METI makes allocations of import quotas after deciding the order of receipt of application 
through open drawing only when total quantity r equested by applicants exceeds remaining 
unallocated quota on application day.  
Detailed information about the drawing process is available on the following the METI website (in 
Japanese only);  
http://www.meti.go.jp/policy/external_economy/trade_control/bo ekikanri/download/import/2005/
20050218_079_im.pdf . 
 
3.2 Measures Directly Affecting Exports  
3.2.4 Export support and promotion  
 
Page 45 Para 3.72  
"JBIC is established under the Japan Bank for International Cooperation Act of 2011. Most of 
JBIC's lending ac tivities are for overseas investment loans – which represented more than three 
quarters of the total operations of ¥2,397.4 billion in FY2015 (Table 3.6). Standard forms of export 
credit extended by JBIC include buyer's credits and bank -to-bank loans. In F Y2014, the total 
commitments for export loans stood at about ¥406.4 billion and, in FY2015, at about ¥141.0 
billion. JBIC's lending activities concern, inter alia, projects that will deliver raw materials to Japan, 
projects involving Japanese companies, as  well as projects abroad using exports from Japan."  
 
Question : 
19. Would Japan please describe the loan mechanisms for companies from partner countries?  
 
RESPONSE  
JBIC provides buyer 's credits (loans) for companies from other countries that import products fro m 
Japan  
 
20. Would the companies which produces intermediate goods be able to obtain the investment 
loans? Does it also include goods other than raw materials?  
 
RESPONSE  
JBIC provides investment loans for Japanese companies (investors) and overseas Japanese 
affiliates including joint ventures. These companies include those which produce goods other than 
raw materials including intermediate goods . 
 
3.3 Measures Affecting Production and Trade  
3.3.6 Standards and other technical requirements  
Page 60 Para 3.123 Poi nt 2 
"The amendment on 31 March 2015 of the Textile Goods Quality Labeling Regulations based on 
the Household Goods Quality Labeling Act to adopt a new technical regulation on textile labelling 
regarding care instructions for home washing, etc. in line wit h the relevant ISO standard. These 
Regulations are to enter into force on 1 December 2016;"  
 
Question:  
21. Please inform us the objectives of the textile goods labeling regulations? What will be 
changed on textile  labelling? Is it related to standard informati on? 
 
RESPONSE  
The textile goods quality labeling regulations is a public notice based on the Household Goods 
Quality Labeling Act. The purpose of this Act is to ensure proper labeling of the quality of 
household goods, and to protect the interests of gener al consumers. Before the regulation was 
amended, the mark of care instructions for home washing, etc. had complied with  the Japanese 
Industrial Standard (JIS) L 0217, which is Japan 's own standard. After the regulation was 
amended, the mark was changed to the new mark specified by the Japanese Industrial Standard 
(JIS) L 0001, which is harmonized with the International Standard (ISO) 3758.  
 
3.3.7 Sanitary and phytosanitary measures  
Page 65 Para 3.148  
"Since its last review, there has been no change to Japa n's food import bans. It currently imposes 
import prohibitions on beef and poultry to prevent the spread of BSE and avian flu. Japan has 
allowed beef imports from Brazil, Canada, Denmark, France, Ireland, Italy, Lichtenstein, the WT/TPR/M/351/Add.1  
 
- 115 - 
 
  Netherlands, Norway, Polan d, Sweden, Switzerland, and the United States under certain conditions 
based on scientific review by the Food Safety Commission."  
 
Question : 
22. Does Japan refer international standard to review / verify all kind of meat products? We 
hope that Japan would revi ew the implementation of the said policy.  
 
RESPONSE  
The Government of Japan conducts risk assessments and establishes requirements for meat 
products to be imported to Japan (Animal Health Requirements) by taking into account the 
relevant international stan dards, such as the OIE code  
 
3.3.10 Intellectual property rights  
3.3.10.1 Overview  
 
Page 75 Table 3.31 Summary of the protection of intellectual property rights, 2016  
 
 
 
Question : 
23. Please explain the detail of the implementation of Trade -Related Aspects o f Intellectual 
Property Rights (TRIPs) in Japan, especially related to trademark?  
 
RESPONSE  
The IPR system of Japan conforms to the TRIPS Agreement. For your information, we have 
reprinted as follows "Section 2: Trademarks" from the document titled "Cross -Reference Table 
Regarding Japan 's Legislation on Trademarks, Geographical Indications, Industrial Designs and 
Patents" that was submitted to the WTO when Japan acceded to the TRIPS Agreement.  
 
PROVISIONS OF THE TRIPS AGREEMENT  PROVISIONS OF RELEVANT LAWS A ND/OR 
REGULATIONS  
SECTION 2: TRADEMARKS  
Article 15: Protectable Subject Matter  
Para.1 - Constitution of a trademark  
- Eligibility for registration  
- Distinctiveness acquired through use  
Para.2 - Denial of registration on other grounds  
Para.3 - Registrabil ity dependent on use  
Para.4 - Nature of the goods or services  
 
 
Para.5 - Publication of a trademark  
- Opportunity for petitions to cancel the  
registration  
- Opportunity for opposition to the  
registration  
  
 
Trademark Law, Article 2, para.1  
Trademark Law, Article 3, para.1  
Trademark Law, Article 3, para.2  
Trademark Law, Article 4  
 
* No use required for registration  
* No provision to form an obstacle to registration based 
on the nature of the goods or services  
Trademark Law, Article 16  
Trademar k Law, Article 46  
 
Trademark Law, Article 16 quater  
 
 WT/TPR/M/351/Add.1  
 
- 116 - 
 
  PROVISIONS OF THE TRIPS AGREEMENT  PROVISIONS OF RELEVANT LAWS A ND/OR 
REGULATIONS  
Article 16: Rights Conferred  
Para.1 - Exclusive r ight 
- Presumption of a likelihood of  
confusion  
- Protection of existing prior rights  
Para.2 - Application of the provision of Article 6 bis of the 
Paris Convention (1967) to services  
 
 
 
 
 
 
Para.3 - Application of the provision of Article 6 bis of the 
Paris Convention (1967) to dissimilar goods or services  
 
 
 
 
 
 
Article 17: Exceptions  
 
 
 
 
Article 18: Term of Protection  
 
Article 19: Requirement of Use  
Para.1 - Cancellation by non -use 
- Valid reasons for non -use 
Para.2 - Use by another person  
 
Article 20: Othe r Requirements  
 
Article 21: Licensing and Assignment  
- Conditions on the licensing and  
assignment  
 
- Prohibition of compulsory licensing  
- The right to assign the trademark with  
or without the transfer of the business   
Trademark Law, Article 25  
Trademark Law, Article 37, para.1  
 
Trademark Law, Article 32  
Trademark Law, Article 4, para.1, subpara.10  
Trademark Law, Article 15  
Trademark Law, Article 46  
Unfair Competition  Prevention Law,  
Article 2, para.1, subpara.1  
Unfair Competition Prevention Law,  
Article 2, para.1, subpara.2  
Unfair Competition Prevention Law,  
Article 3  
Trademark Law, Article 4, para.1, subpara.15  
Trademark Law, Article 15  
Trademark Law, Article 46  
Unfair Competition Prevention Law, Article 2, para.1, 
subpara.1  
Unfair Competition Prevention Law, Article 2, para.1, 
subpara.2  
Unfair Competition Prevention Law, Article 3  
 
Trademark Law, Article 26  
Trademark Law, Article 29  
Trademark Law, Article 32  
Trademar k Law, Article 33  
 
Trademark Law, Article 19  
 
 
Trademark Law, Article 50, para. 1  
Trademark Law, Article 50, para. 2  
Trademark Law, Article 50  
 
* No other requirements  
 
 
Trademark Law, Article 24  
Trademark Law, Article 30  
Trademark Law, Article 31  
* No pro vision to permit compulsory licensing  
Trademark Law, Article 24  
 
24. Does Japan have specific national IPR rules? What are the differences between the 
international rules with national rules, especially related to trademark?  
 
RESPONSE  
In Japan, intellectual p roperty rights (IPRs) are protected by the Patent Act, the Design Act and 
the Trademark Act, etc. Especially, as to trademark Japanese national rules are harmonized with 
international treaties including the TRIPS Agreement, the Singapore Treaty on the Law of 
Trademarks (STLT) and the like  
 
 
4 TRADE POLICIES IN SELECTED SECTORS  
4.2 Fisheries  
4.2.2 Policy  
 
Page 99 Para 4.52  
"The average applied MFN tariff 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, unchanged since Japan's previous review. In addition, other market access measures apply 
to several species:  
 For some tuna and tuna -like species, such as bluefin tuna, southern bluefin tuna a nd 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 management org anizations WT/TPR/M/351/Add.1  
 
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  (RFMOs) such as the International Commission for the Conservation of Atlantic Tunas 
(ICCAT) and the Commission for the Conservation of Southern Bluefin Tuna (CCSBT).  
 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 total allowable catches (TACs) which apply to some of 
these species. "  
 
Question : 
25. Please inform us are there any plan fro m Japan to increase the trade especially for fish 
product through the reduction of tariff and non -tariff measures?  
 
 
RESPONSE  
Japan, where weighted average MFN tariff rate on fish and fishery products is as low as 4.5%, is 
one of the largest fish and fishe ry products importing countries in the world, and will continue to 
import the products necessary to meet its demand, while ensuring conservation and management 
of fishery resources  
 
26. The requirements are beyond FAO standard. Please inform us on whether ther e is any 
flexibility for developing and LDCs countries regarding the implementation of NTMs on fish 
product, especially on standard of pesticide and bacterial residue limitation?  
 
RESPONSE  
Ministry of Health, Labour and Welfare (MHLW) sets food safety sta ndards including pesticide and  
microbial standard for fish products  under the Food Sanitation Act. They are applied only to the 
extent necessary to protect human, animal or plant life or health, are based on scientific principles 
and applied non -discrimina tely among imported foods and domestic products in accordance with 
SPS Agreement. MHLW also notifies the WTO Member of proposed measures for comments in 
accordance with SPS Agreement . 
 
 
ADDITIONAL ANSWERS  - INDONESIA  
SECRETARIAT REPORT  
Summary  
 
Page 10 Par a 9 
"Japan's overall simple average applied MFN tariff rate increased from 5.8% in FY2014 to  6.1% in 
FY2016 due to higher average ad valorem  equivalents of non -ad valorem  duties. Of the 
101 highest tariffs, 95 had non ad valorem  rates. The simple average a pplied rate is 16.3% (up 
from 14.9% in FY2014) for agriculture (WTO definition), and 3.6% for non -agricultural products 
(down from 3.7% in FY2014). Japan has bound 98.2% of its tariff (159 lines are unbound). The 
difference between the average bound MFN ta riff (6.2%) and the average applied MFN tariff 
(6.1%) continues to be negligible in FY2016; this reflects a high degree of predictability in the 
tariff. However, the average bound rate remains considerably higher for agricultural products 
(16.7%) than for non-agricultural products (3.6%). Japan makes use of tariff quotas; there are 
158 tariff lines (1.7%) subject to MFN out -of-quota tariffs, of which 11 are under state trading. 
The quota allocation method and process remains somewhat intricate; procedures f or the 
allocation of tariff quotas have remained unchanged since 2014. " 
 
Question:  
27. Would the increase of MFN tariff rate  affect  the GSP beneficiaries?  
 
RESPONSE  
As no significant increase or decrease has been observed in import from GSP beneficiaries from 
FY2014 to FY2016, there appears to be little or no impact of the increase of MFN tariff rate on the 
GSP beneficiaries.  
 
Question:  
14. Please give us more explanation the consideration of Japan to give different GSP program for 
every countr y? What kind of p roducts and why Japan chooses those products?  WT/TPR/M/351/Add.1  
 
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  RESPONSE  
Due to their sensitivity to Japan's economy, some products are not subject to GSP. Taking 
differences in the respective industrial structures into account, products subject to GSP are divided 
into agri cultural/fishery products and non -agricultural products. As for agricultural/fishery 
products, respective preferential duty rates are set for certain products. As for non -agricultural 
products, all but some products are given duty -free treatment. In order to support least developed 
countries (LDCs) more effectively, products originating from LDCs are given special preferential 
treatment. They are basically given duty -free, quota -free (DFQF) market access.  
 
The lists of products under GSP treatment and speci al preferential treatment for the LDCs are as 
below,  
 
List of products under the GSP treatment  
http://www.mofa.go.jp/policy/economy/gsp/product.pdf . 
 
List of products for which duty -free, quota -free market access is granted to LDCs  
http://www.mofa.go.jp/po licy/economy/gsp/dfqf.pdf . 
 
 
14. CHINA, PEOPLE'S REPUBLIC OF  
Questions based on Report by the Secretariat (WT/TPR/S/351)  
Page 1(para. 4)  
Japan is the world's fourth -largest exporter and importer of goods and services. Both merchandise 
imports and exports d eclined between 2014 and 2015, reflecting, inter alia, a weak global demand 
and falling commodity prices; as the decline was substantially larger in imports than exports, 
Japan's merchandise trade deficit sharply contracted.  
Question:  
1. Japan maintains st rong technical advantages on materials and equipment and has large export 
of those products. How does Japan support the development of those industries? Sources said that 
foreign buyers are requested to sign the contract first before bargaining price when purchasing 
equipment, would Japan please explain this scenario?  
 
RESPONSE  
In order to maintain Japan's strong technical advantages  in fields such as materials and 
equipment, the Government of Japan implements diversified support measures such as research 
and development of innovative technology and human resource development as promotion of 
manufacturing industry  
 
Page 16(para 1.12)  
"At its meeting in September 2016, the BOJ decided to introduce a new policy framework 
consisting of two major components."  
 
Question： 
2. Please kindly describe the implementation and results of this policy framework.  
 
RESPONSE  
Implementation of Yield curve control  
The short -term policy interest rate:  
The Bank of Japan will apply a negative interest rate of minus 0.1 percent to t he Policy -Rate 
Balances in current accounts held by financial institutions at the Bank.  
The long -term interest rate:  
The Bank will purchase Japanese government bonds (JGBs) so that 10 -year JGB yields will remain 
at around zero percent. With regard to the a mount of JGBs to be purchased, the Bank will conduct 
purchases at more or less the current pace -- an annual rate of increase in the amount 
outstanding of its JGB holdings of about 80 trillion yen -- aiming to achieve the target level of the 
long-term inte rest rate specified by the guideline.  
 
Implementation of Inflation -overshooting commitment  
The Bank will continue with the "QQE with Yield Curve Control," aiming to achieve a price stability 
target of 2 percent, as long as it is necessary for maintaining t hat target in a stable manner.  WT/TPR/M/351/Add.1  
 
- 119 - 
 
  The Bank will continue expanding the monetary base until the year -on-year rate of increase in the 
observed CPI (all items less fresh food) exceeds the price stability target of 2 percent, and stays 
above the target in a stabl e manner. Meanwhile, the rate of increase in the monetary base may 
fluctuate in the short run under market operations that aim at controlling the yield curve.  
 
Views on results of this policy framework  
In April 2013, the Bank introduced an unprecedentedly large-scale monetary easing, quantitative 
and qualitative monetary easing (QQE), in order to achieve a price stability target of 2 per cent at 
the earliest possible time. The main transmission mechanism of QQE is lowering the real interest 
rates by (1) exe rting downward pressure on the interest rates across the entire yield curve 
through massive purchases of Japanese government bonds (JGBs) and (2) raising people's 
inflation expectations through the Bank's strong and clear commitment. Thereafter, the Bank h as 
pursued further monetary easing as appropriate; it expanded QQE in October 2014, followed by 
the introduction of the negative interest rate policy in January 2016. Thanks to a series of powerful 
monetary stimulus measures, Japan's economy has improved s ignificantly during a period of more 
than three and a half years. The excessive appreciation of the yen has been corrected, and stock 
prices have increased substantially. Corporate profits have marked historical high levels, and 
business fixed investment h as recovered. With regard to the employment and income situation, 
the unemployment rate has declined to as low as 3 per cent, which is virtually full employment, 
and wages have continued to rise moderately. On the price front, Japan's economy is no longer in 
deflation, which is commonly defined as a sustained decline in general prices, although there 
remain effects on inflation due to the significant fall in crude oil prices.  
 
References:  
Statement on Monetary Policy (January 31, 2017)  
New Framework for Str engthening Monetary Easing: "Quantitative and Qualitative Monetary Easing 
with Yield Curve Control" (September 21, 2016)  
A New Phase of the Global Economy and Challenges Facing Japan's Economy, Speech at the 
Meeting of Councillors of Nippon Keidanren (Japa n Business Federation) in Tokyo (December 26, 
2016)  
http://www.boj.or.jp/en/announcements/release_2017/k170131a.pdf ,  
http://www.boj.or.jp/en/announcements/release_2016/k160921a.pdf ,  
http://www.boj.or.jp/en/announcements/press/koen_2016/data/ko161226a1.pd f.¨ 
 
Page 24 (para. 2.7)  
"Japan is also a party to the Information Technology Agreement (ITA) and has actively participated 
in the ITA product expansion negotiations (ITA II). Japan deposited an instrument of acceptance 
with the WTO on 1 June 2015."  
 
Quest ion: 
3. Has Japan completed its domestic procedures regarding the expansion of ITA? When will it be 
implemented?  
 
RESPONSE  
The Government of Japan has submitted the Expansion of the Information Technology Agreement 
to the Diet on 24th February, and now wai ts for its approval by the Diet.  
 
Page 24 (Paragraph 2.12)  
"Japan is an active participant in the APEC and ASEM fora which held their respective summits 
(Leaders' Meetings) in November 2015 and in July 2016…"  
 
Question  
4. According to our knowledge, Japan has drafted a plan for environmental services under the 
framework of APEC. Please kindly indicate Japan 's further plan to promote liberalization of trade in 
environmental services in APEC in the future.  
 
Page 25(para. 2.21)  
"The Act on National Strategic S pecial Zones of 2013 provides for the designation of zones based 
on the expectation that regulatory reform will lead to increased investment. According to the 
authorities, precise details for each zone are to be decided by consensus between the national 
government, local authorities, and the private sector."…  
 WT/TPR/M/351/Add.1  
 
- 120 - 
 
  Question : 
5. Is the Act on National Strategic Special Zones available on any official website? Is there a copy 
in English? How to obtain information on the policies and regulations of each National St rategic 
Special Zone?  
 
RESPONSE  
Information on National Strategic Special Zones (NSSZ), including the law establishing them, and 
the policies and plans of each individual zone, can be viewed on their websites. While no English 
translations of the laws are available, there is an English -language website which provides an 
overview of NSSZs.  
・ Act on National Strategic Special Zones (Japanese)  
http://law.e -gov.go.jp/htmldata/H25/H25HO107.html  
・ National Strategic Special Zones (Japanese)  
http://www.kantei.go.j p/jp/singi/tiiki/  
・ The overview of NSSZs, the projects of each zone (English)  
 http://www.kantei.go.jp/jp/singi/tiiki/kokusentoc/pdf/jigyou_all_e.pdf . 
Page 72 (Table 3.28)  
Table3.28 ： Procurement by type of service, 2013 and 2014  
 
Type of service  2013  2014  
Total value  
(¥100 million)  Foreign 
share 
(%) Total value 
(¥100 million)  Foreign 
share 
(%) 
Total 9,625.3  1.4 9,540.2  1.4 
…… ……    
Sewage and refuse disposal, sanitation 
and other environmental protection  92.2 0.0 289.6  0.0 
Other  671.0  0.2 165.6  0.0 
n.a. Not applicable.  
Source:  Prime Minister's Office online information (in Japanese). Viewed at: 
http://www.kantei.go.jp/jp/kanbou/26tyoutatu/dai2/dai2honbun.pdf  and 
http://www.kantei.go.jp/jp/kanbou/27tyoutatu/dai2/dai2honbun.pdf . 
Question:  
6. In 2013 an d 2014, foreign share in the procurement of Sewage and refuse disposal, sanitation 
and other environmental protection  services reads zero according to table 3.28, please kindly 
clarify if Japan applies any restriction or threshold to access in government p rocure ment of 
environmental services.  
 
RESPONSE  
In the area of sewage and refuse disposal, sanitation and other environmental protection, there is 
no other restriction or threshold of access vis -à-vis foreign suppliers than those set out in Annexes 
of Japa n to the GPA.  
 
Page 82(para. 3.198)  
"Various amendments were made to the Copyright Law in 201 4. These include the amendment to 
implement the Beijing Treaty on Audiovisual Performances. In addition, revisions were made to the 
Act to clarify that not only bo oks published on paper but also electronic books are covered by the 
right of publication. These amendments entered into force in 2015."  
 
Question  
7. According to our knowledge, for TPP to enter into force, Japan planned to make further 
amendments to its Co pyright Law in 2016, including extending the term of protection, the 
classification of some infringement of copyright as crimes  handled even without complaint, adding 
access control technical measures and penalty provisions, etc. Please specify Japan 's progress on 
and latest direction of amendments to its Copyright Law.  
 
RESPONSE  
The bill to implement the Trans -Pacific Partnership including partial revisions of the Copyright Act 
was submitted to and passed the National Diet on 9th December 2016.  
Specificall y, the Copyright Act was revised concerning the extension of the term of protection for 
copyrighted works, etc., certain crimes of copyright infringement to be made prosecutable without WT/TPR/M/351/Add.1  
 
- 121 - 
 
  the need for a formal complaint, improvement of a system for pre -estab lished damages, and 
improvement of a system of effective technological measures for managing use of copyrighted 
works, etc.  
 
Page 93(para 4.11)  
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.  
 
Question  
8. Could Japan please introduce this comprehensive set of policy measures and  the implementing 
effect?  
Does Japan have any plan to reduce the level of protection and support for domestic producers?  
 
RESPONSE  
Agriculture plays an important role in stabilizing the food supply, developing regional economies, 
and maintaining local soci eties in every country. In light of these objectives, the Government of 
Japan has implemented necessary agricultural policies, such as budgetary and legislative measures 
in accordance with the WTO Agreement. Specific measures are explained in the reports b y the 
Government and by the Secretariat.  
The current level of agricultural tariffs and the commitment on domestic support were a result of 
the UR negotiations. We cannot prejudge the future development of those negotiations.  
 
Page 110(para. 4.88)  
Existing foreign bank branches that were active in Japan before the entry into force of the 
amended law were not evaluated by the new licensing standards, and no re -licensing scheme 
exist. However, the new licensing standards have been incorporated into supervision  criteria; thus, 
"existing" foreign bank branches are evaluated and supervised by the new licensing standards.  
 
Question  
9. Does Japan acquiesce the "current" foreign bank branches meeting the new standards 
automatically?  
 
RESPONSE  
There is no re -licensing  scheme, but the Financial Services Agency supervises foreign bank 
branches by the Comprehensive Guidelines for Supervision of Major Banks in which the new 
licensing standards have been incorporated.  
 
Question  
10. How will Japan react if the  "existing "for eign bank branches  do not meet the new standards?  
 
RESPONSE  
If the Financial Services Agency (FSA) finds in daily supervision that a foreign bank branch fails to 
meet the standards, the FSA will require correction of such branch  
 
Page 112(para. 4.95)  
The r egulatory framework of telecommunication services in Japan has been described in detail in 
previous TPR reports 3; since Japan's previous review, it has undergone a few changes concerning: 
the mobile interconnection regime, consumer information and protect ion, SIM card unlocking and 
the duration of mobile contracts.  
 
Question  
11. If foreign enterprises intend to set up a company to provide telecom services in Japan, what 
are the required documents for the foreign enterprises to submit to the MIC? And how sh all they 
be submitted? How long will the examination take? Are there any cases that foreign enterprises 
did not get permits or succeed in filing for the record? If yes, please explain the reasons.  
 
RESPONSE  
When telecommunication businesses prescribed in P aragraph 4 of Article 2 of the 
Telecommunication Business Act intend to start running their business, they are required to be 
                                                
3 WTO docu ments WT/TPR/S/276, 15 January 2013 and WT/TPR/S310/Rev.1, 6  May 2015.  WT/TPR/M/351/Add.1  
 
- 122 - 
 
  registered according to Article 9 of the Act, or to notify as prescribed in the Section 1 of Article 16 
of the Act. In this case t hey have to submit the documents prescribed in Article 4 or 9 of the 
Telecommunication Enforcement Regulation, to the Minister for Internal Affairs and 
Communications. About the review period, in accordance with the Article 6 of the Administrative 
Procedur e Act, the registration prescribed in Article 9 of the Telecommunication Business Act is 
accorded a standard period of one month. No foreign businesses have been denied until now their 
requests for registration prescribed in the Article 9 of Telecommunicat ion Business Act.  
 
Page 113(para. 2)  
…"the Telecom Business Act was amended in May 2015 (with entry into force of the amendments 
in May 2016) so as to promote fair competition and encourage the entry of new mobile virtual 
network operators (MVNO).... Under  the new regime, MIC Ordinance  No. 31 of 29 March 2016  
precisely defines the interconnection obligations as well as the calculation method and procedures 
for interconnection fees to be paid by MVNOs, which are based on reasonable costs under efficient 
mana gement plus reasonable profit."  
 
Question  
12. Please introduce the detailed amendments to the Telecom Business Act and the purpose for 
such amendments.  
 
RESPONSE  
Please refer to answers to questions 13 and 14.  
 
Question  
13. Please introduce the rules and r egulations on the interconnection of MVNOs, as well as the 
calculation method for interconnection fees paid by MVNOs. Please provide the full text of MIC 
Ordinance No. 31.  
 
RESPONSE  
Under the Telecommunications Business Act (Article 34), facilities of MNOs  that have more than 
10% share of terminals are designated as "Category 2 Designated Facilities" (Cat.2 facilities). 
MNOs which have Cat.2 facilities (NTT DOCOMO, KDDI, Okinawa Cellular Telephone Company (a 
local subsidiary company of KDDI) and SoftBank) a re obliged to file with MIC and publish their 
interconnection charges, terms and conditions. In May 2015, the Act was amended to add several 
obligations regarding interconnection with telecommunication carriers, including MVNOs, such as 
an obligation to sp ecify interconnection charges for functions specified by an MIC ordinance. The 
interconnection charge caps consist of "reasonable costs" and "reasonable profits". The detailed 
calculation method is specified in MIC Ordinance No. 31 from 2016. Additionally,  there are general 
rules for interconnection, such as an obligation to accept requests for interconnection (Article 32 of 
Telecommunications Business Act), and schemes for dispute settlement between operators (Article 
35 and 39, etc.).  For the full text of  MIC Ordinance No. 31 which was promulgated on March 31, 
2016, please refer to the following URL:  
http://www.soumu.go.jp/menu_hourei/s_shourei.html . 
 
Page 112(para. 4.96)  
The Telecom Business Act was amended in May 2015 (with entry into force of the amendm ents in 
May 2016) so as to promote fair competition and encourage the entry of new mobile virtual 
network operators (MVNO).  
 
Question  
14. Could Japan please introduce the market access policy of MVNO and the current development 
of MVNO?  
 
RESPONSE  
By the am endment of the Telecommunication Business Act in May 2015 (enforced in May 2016), 
the rules and regulations concerning interconnection between MVNOs are as answered to Q13. The 
number of subscribers of MVNOs is 14.27 million at the end of September 2016 (u p by 33.0% 
from the year -earlier month), and there are 611 MVNOs.  
 
Questions based on Report by Japan (WT/TPR/G/351)  
Page 11(para. 2.35)  WT/TPR/M/351/Add.1  
 
- 123 - 
 
  In the Japan Revitalization Strategy 2016 (decided by the Cabinet in June 2016), the Japanese 
Government stated that it  "will also aim to increase the amount of inward FDI to ¥35  trillion by 
2020 (¥24.4 trillion at the end of 2015)".  
 
Question  
15. What measures does Japan intend to adopt to achieve this goal?  
 
RESPONSE  
In addition to reforms to regulations in individual fi elds such as energy, healthcare and agriculture, 
the Government of Japan aims to realize "the most business -friendly county in the world", and 
introduces a new methodology for regulatory and institutional reforms to promote regulatory 
reforms, simplificati on of administrative procedures, and evolution of information technology in an 
integrated and unified manner from the entrepreneur 's perspective  
 
Page 18(para. 4.26)  
 "As for the telecommunications sector, in keeping with the spread of the smart phone and 
diversification of public wireless LAN, the definition of a public wireless LAN access service was 
widened in order to impose obligations on Telecommunications Carriers to explain conditions of 
offering services when concluding a contract. "  
 
Questio n 
16. Please further explain the definition of a public wireless LAN access service and introduce the 
context under which it has been revised and its implementation situation.  
 
RESPONSE  
Under Article 26 of Telecommunication Business Act, telecommunication busine ss etc. are required 
to explain the offer conditions that users should understand when they conclude contracts. The 
Telecommunication Enforcement Regulation is amended to stretch the target of public wireless LAN 
of telecommunication services to services f or mobile telecom terminals, such as wireless LAN 
enabled smart phones, and services that access facilities of non -telecommunication business. The 
amendment has been enforced since March 2015. Now the contents for regulation of specified 
telecommunication services are specified in each paragraph of Section 1 of Article 26 of the 
Telecommunication Business Act.  
 
Other Questions  
17. According to Annex14 to the Convention on International Civil Aviation, Contracting states 
shall certify aerodromes used for int ernational operations and as a recommendation that states 
should certify aerodromes open to public. Please kindly indicate the policies and practices through 
which Japanese government, as a member of ICAO, performs this obligation. Please also indicate 
how Japan manages aerodromes not open to public, especially General Aviation Airports, including 
management during construction and operation, as well as requirements on reports of a record 
nature, if any.  
Note: "aerodromes" include all kinds of facilities c overed by Annex14, including any airport, 
heliport, seaplane base, manned balloon launching facility, or other aircraft landing or takeoff area.  
 
RESPONSE  
The Government of Japan applies aerodrome certification to all aerodromes open to the public.  
The ins pection is conducted on aerodromes not open to the public, to ensure they are managed 
adequately. The record of necessary information in the business log is required for those 
aerodromes  
 
18. Are there any restrictions on foreign investment in air services  such as airports, General 
Aviation / Specialty Air Services , aviation fuel, Ground Handling Services , Aircraft repair and 
maintenance services , air transport services and CRS, in terms of investment, cross -border 
services, etc.? If so, please specify the measures, e.g. requirements on foreign ownership ratio or 
commercial presence. Is there any plan or schedule on further liberalization?  
 
RESPONSE  
There are no restrictions on foreign investment in airports, aviation fuels, ground handling services 
and CRS.  
1. Regarding aerial work business prescribed in the Civil Aeronautics Act which corresponds to 
Specialty Air Services, there are the following restrictions on foreign investment.  WT/TPR/M/351/Add.1  
 
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  First, the prior notification requirement under the Foreign Exchange and For eign Trade Act applies 
to foreign investors who intend to make investments, such as acquiring stocks amounting to at 
least 10% ownership of shares in listed companies, or shares in unlisted companies, in aerial work 
business in Japan.  
Second, the permissio n of the Minister of Land, Infrastructure, Transport and Tourism for 
conducting aerial work business will not be granted to the following natural persons or entities 
applying for the permission:  
(a) a natural person who does not have Japanese nationality;  
(b) a foreign country, or a foreign public entity or its equivalent;  
(c) a legal person or other entity constituted under the laws and regulations of any foreign 
country; and  
(d) a legal person represented by the natural persons or entities referred to in  subparagraph 1(a), 
(b) or (c); a legal person of which more than one -third of the members of the board of directors 
are composed of the natural persons or entities referred to in subparagraph 1(a), (b) or (c); or a 
legal person of which more than one -third of the voting rights are held by the natural persons or 
entities referred to in subparagraph 1(a), (b) or (c).  
In the event a person conducting aerial work business falls under a natural person or an entity 
referred to in subparagraphs 1(a) through (d), the permission will lose its effect. The conditions for 
the permission also apply to companies, such as holding companies, which have substantial control 
over the person conducting aerial work business.  
Last, a foreign aircraft may not be used for a flight  between points within Japan.  
Incidentally, there is no plan on further liberalization of aerial work business.  
 
2. Regarding air transport services, there are the following restrictions on foreign investment.  
First, the prior notification requirement unde r the Foreign Exchange and Foreign Trade Act applies 
to foreign investors who intend to make investments, such as acquiring stocks amounting to at 
least 10% ownership of shares in listed companies, or shares in unlisted companies, in air 
transport business es in Japan.  
Second, the permission of the Minister of Land, Infrastructure, Transport and Tourism for 
conducting air transport businesses as a Japanese air carrier will not be granted to the following 
natural persons or entities applying for the permissio n: 
(a) a natural person who does not have Japanese nationality;  
(b) a foreign country, or a foreign public entity or its equivalent;  
(c) a legal person or other entity constituted under the laws and regulations of any foreign 
country; and  
(d) a legal pers on represented by the natural persons or entities referred to in subparagraph 
2(a), (b) or (c); a legal person of which more than one -third of the members of the board of 
directors are composed of the natural persons or entities referred to in subparagraph  2(a), (b) 
or (c); or a legal person of which more than one -third of the voting rights are held by the 
natural persons or entities referred to in subparagraph 2(a), (b) or (c).  
In the event an air carrier  falls under a natural person or an entity referred to in subparagraphs 
2(a) through (d), the permission will lose its effect. The conditions for the permission also apply to 
companies, such as holding companies, which have substantial control over the air carriers.  
Third, a Japanese air carrier or a compan y having substantial control over such an air carrier, such 
as a holding company, may reject the request from a natural person or an entity set forth in 
subparagraphs 2(a) through (c), who owns equity investments in such an air carrier or company, 
to enter  its name and address in the register of shareholders, in the event such an air carrier or 
company falls under a legal person referred to in subparagraph 2(d) by accepting such request.  
Fourth, foreign air carriers are required to obtain the permission of the Minister of Land, 
Infrastructure, Transport and Tourism to conduct international air transport businesses.  
Fifth, the permission of the Minister of Land, Infrastructure, Transport and Tourism is required for 
the use of foreign aircraft for air transpor tation of passengers or cargoes to and from Japan for 
profit.  
Last, a foreign aircraft may not be used for a flight between points within Japan.  
Incidentally, there is no plan on further liberalization of air transport services.  
 
3. Regarding ownership of  aircraft, there are the following restrictions on foreign investment.  
First, an aircraft owned by any of the following natural persons or entities may not be registered in 
the national register:  
(a) a natural person who does not have Japanese nationality;  
(b) a foreign country, or a foreign public entity or its equivalent;  
(c) a legal person or other entity constituted under the laws of any foreign country; and  WT/TPR/M/351/Add.1  
 
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  (d) a legal person represented by the natural persons or entities referred to in subparagraph 
3(a), (b) or (c); a legal person of which more than one -third of the members of the board of 
directors are composed of the natural persons or entities referred to in subparagraphs 3(a), (b) or 
(c); or a legal person of which more than one -third of the voting  rights are held by the natural 
persons or entities referred to in subparagraph 3(a), (b) or (c).  
Second, a foreign aircraft may not be registered in the national register.  
Incidentally, there is no plan on further liberalization of aircraft owners.  
 
4. As  for aircraft repair and maintenance services, based on the Foreign Exchange and Foreign 
Trade Act, prior notifications to the authorities are required for inward foreign investment.  
If foreign investors are making investments such as acquiring stocks amou nting to at least 10% 
ownership of shares in listed companies, or shares in unlisted companies, in certain designated 
sectors, the Act requires them to make prior notification.  
The Government of Japan is making constant efforts to review the restriction fr amework on inward 
foreign investments.  
 
Question  
19. We have noticed in the negative lists of trade agreements between Japan and other countries 
and regions (e.g. TPP and FTA with Switzerland) that Japan maintains the right to review foreign 
investment in telecommunication and internet -based services.  
Could Japan please introduce how they conduct the review of foreign investors in 
telecommunication and internet services, including the subject, the scope and the procedures of 
the review ? 
 
RESPONSE  
Under the provisions of the Foreign Exchange and Foreign Trade Act, for telecommunication and 
Internet services, inward FDI for registered operators, stipulated in Article 9 of the 
Telecommunications Business Act, is subject to a prior notification (for the Listed c ompanies 
limited to acquisition of more than 10% of shares), and the notification is to be screened in 
accordance with the Act and its relevant regulations. The examination is made on a case -by-case 
basis in view of certain criteria, such as national secur ity, public order and public safety.  
 
 
ADDITIONAL REPLIES  - CHINA  
Q1. How many Category I and II operators invested by foreign investors are there in Japan at the 
moment and which countries are they mainly from and how is their operation?  
 
RESPONSE  
Accordi ng to public information, there are shareholders without Japanese nationality who own 
shares in telecommunication carriers (including their parent companies) that install Category I and 
Category II designated telecommunications facilities. However, MIC doe s not have all the 
information on the detailed numbers and the nationality of such shareholders.  
 
Q2. What taxation preferential policies is Japan adopting in telecommunication sector for foreign 
enterprises?  
 
RESPONSE  
In the telecommunication sector, ther e is no preferential policy applied only to foreign enterprises.  
 
Q3. What are the calculation method and procedures of the interconnection fees provided by the 
Japanese Government and to be paid by mobile virtual network operator?  
 
RESPONSE  
As we stated i n the previous answer, the detailed calculation method and procedure of the 
interconnection fees are specified in MIC Ordinance No.31 in 2016. Please refer to the following 
URL: http://www.soumu.go.jp/menu_hourei/s_shourei.html . As for the outline, please refer to the 
following PPT.  
 WT/TPR/M/351/Add.1  
 
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 WT/TPR/M/351/Add.1  
 
- 127 - 
 
  
 
 
 
Q4. Is there any case in Japan that mobile virtual network operators are unable to continue 
operation or go bankrupt. If any, how do Category I operators and virtual operators share their 
responsibilities and how do th ey deal with the problems arising from such running discontinuation 
or bankruptcy?  WT/TPR/M/351/Add.1  
 
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  RESPONSE  
When telecommunication carriers suspend or abolish all or part of their business, they are required 
to report that to the Minister of Internal Affairs and Communica tions in accordance with the 
Telecommunication Business Act ( "Act"). This requirement applies to mobile virtual network 
operators as well, but the reason for the suspension or abolition is not required to be reported. In 
addition, telecommunication carrier s including mobile virtual network operators are obliged, in 
advance, to disseminate information on the suspension or abolition to users in accordance with the 
Act. 
 
Question 5.  The voluntary measures (Procedures for Government Procurement of Products) 
encourage the adoption of the overall -greatest -value evaluation method (OGV) where the lowest -
price-award method is deemed inadequate. In addition, in the areas of computer products and 
services, telecommunication products and services, and medical technology  products and services, 
when large procurement is conducted, it is obligatory under the voluntary measures to apply the 
OGV. How is OGV provided and implemented?  
 
RESPONSE  
The application of OGV is obligated under the voluntary measures for the specific go vernment 
procurements as below:  
・Computer products and services -----------------  Over 800 thousand SDR  
・Telecommunication products and services ---- Over 385 thousand SDR  
or special order item  
・Medical technology products and services -----Over 385 thousand SDR  
or special order item  
OGV c an also be applied to government procurement that is considered by a procuring entity as 
suitable for the application of OGV, in accordance with the decision made through consultation 
between the procuring entity and the Minister of Finance.  
 
Q6. What is the development of the FY2015 Subsidy Program? Which innovation programs have 
been approved? Among these subsidy programs, are there any programs invested by enterprises 
from other countries?  
 
RESPONSE  
This Subsidy Program will end on 31 March 2017 (end of  FY2016). The contents of the selected 17 
projects are not made public because they are confidential information. Nationalities of the 
selected companies or their parent companies are as follows.  
Australia, Canada, China, Germany, India, the Netherlands, Sweden, the UK and U.S.  
 
Q7. Can Japan provide information about the new energy efficiency standards and labelling status 
for refrigerators, freezers and commercial vehicles? Are these standards mandatory?  
 
RESPONSE  
Please see the next page to check the ne w energy efficiency standards and labelling status of 
electric refrigerators, electric freezers and commercial vehicles (small freight vehicles). These 
standards are mandatory for manufactors and importers in Japan.  
 
Q8. Does Japan have any plan to amend t he energy efficiency standards for such industrial 
products such as electric machines and transformers? If any, can Japan introduce the plan and 
expected timetable?  
 
RESPONSE  
The Government of Japan does not have any plan to amend the energy efficiency sta ndards for 
such industrial products now.  
 
Q9. Can Japan introduce the listed technology in software?  
 
RESPONSE  
Based on the agreement of the international export control regimes, we define software at one of 
the typed of the technology in Japanese Foreign Exchange and Foreign Trade Act. We introduce 
the listed technology in the table below.  
http://www.meti.go.jp/policy/anpo/matrix_intro.html  
Please understand that we do not have the table in English.  WT/TPR/M/351/Add.1  
 
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  In addition, CISTEC, non -profit organization in Japan gi ves support to industry 's export control 
implementation.  
CISTEC has published a spreadsheet comparing Japan 's list with the EU list on its homepage. 
Please refer the spreadsheet below for your reference.  
http://www.cistec.or.jp/service/eu_taihi.html  
 
Q10. Can Japan introduce the formulation and amendment procedures of the listed technology in 
software?  
 
RESPONSE  
The list is revised based on the agreement of the international export control regimes every year.  
 
Q11. Can Japan introduce the specific contents and implementation effect of the Action Program?  
 
RESPONSE  
It is as below that the major reform efforts in key areas.  
<Social Security Area>  
●After proceeding to thorough "visualization " of the facts of healthcare and long -term care 
benefits, the Governmen t of Japan will analyze inputs and regional disparities and advance 
measures to correct them.  
- Activate incentive/disincentive system  
- Estimate "healthcare plus long -term care " cost per person by prefecture/basic -municipality, 
visualize it in various asp ects 
●For the promotion of clinical specialization and collaboration, the Government of Japan will move 
up formulation of the regional healthcare vision by the end of FY2016 and take actions for 
improvement of delivery systems of healthcare. By formulating a me dical cost optimization plan, 
the Government of Japan will take the initiative in the moderation.  
●In order to promote disease prevention, prevention of aggravation, long -term care prevention, 
use of generic drugs and proper receiving of treatment, the Gov ernment of Japan will establish a 
framework with incentives to encourage both individuals and insurers to make efforts (insurer 
support system in National Health Insurance, a rule for increasing or reducing the amount of late -
stage elderly support coverage , healthcare points, etc.).  
●The Government of Japan will clearly define the planning and execution schedule and the reform 
direction, regarding fairness in insurance contributions based on ability to pay and optimization of 
benefits.  
●Regarding reforms related to remuneration for me dical treatment in terms of drug prices and 
dispensing and reforms related to pharmaceuticals, the Government of Japan will clarify actions 
needed for the FY2016 revision of remunerations for medical treatment, etc.  
<Social infrastructure improvement>  
●Conversion of sustainable city structures and stock optimization  
- The Government of Japan will realize compact and sustainable city structures and optimize public 
stock by "visualization " of information regarding maintenance cost and assets in each city. In 
addition, PPP/PFI scheme will be widely used by establishing nationwide platforms.  
●Strategy for Social infrastructure improvement  
- The Government of Japan will prioritize social infrastructure investment areas to maximize their 
stock effects. Long -life infrastructure system and infrastructure maintenance related industry will 
be develo ped. Construction industry reform will be facilitated to secure labor resources. In 
addition, productivity of construction will be increased.  
<Local -government administrative and fiscal reform>  
●To encourage local governments ' efforts for regional revitali zation and administrative and fiscal 
reform, the Government of Japan will advance incentive reforms by reflecting achievements in 
calculation of Vitalizing Local Economies project and introducing the Top Runner method (the 
reflection of the cost levels att ained by expenditure efficient entities in calculations of a basic 
amount of fiscal demand for local allocation tax for the purpose of enforcing efficient expenditures)  
●Monitoring wage increase rate and capital investment growth rate as evaluation points for the 
economic effects derived from local governments ' efforts  
●"Visualization " of administrative cost per resident by nature and objectives in local government 
and "visualization " of stock information through improvement of the fixed asset ledger  
●To monitor changes of administrative cost per person by prefecture and the breakdown of their  
revenue source (e.g. local tax, local allocation tax and national treasury disbu rsement), by 
conducting "visualization " and generating a comparable situation Building a framework to check an 
outcome as a result of inputs (cost -effectiveness)  WT/TPR/M/351/Add.1  
 
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  ●With model projects of operational reforms and creation of standard outsourcing specification s, 
accelerating proper outsourcing to the private sector, which leads to innovation in public services 
and industrialization of public -related services  
●Further promotion of innovation in local governments ' public services by transition to cloud - 
computing  technology and enforcing operational reforms, support for training persons who can 
promote IT strategy and securing human resources who can play a CIO role in local governments  
<Education, science and technology, diplomacy, national security and defense>  
●The Government of Japan will emphasize evidence of educational effects and promote 
experimental studies on education policy. Based on the progress, the Government of Japan will 
present a midterm vision regarding quotas for teaching staff based on the decl ining birthrate and 
school issues.  
●The Government of Japan will introduce private -sector funding to national universities and applied 
research, and define indexes of quality improvement of education and research.  
 
It is the implementation effect of the A ction Program that  this program was applied to FY 2016 
budgeting to steadily promote reforming expenditure measures, and the Government of Japan 
succeed to reduce the growth in general expenditure according to the benchmark defined by 
chapter 3 of "Basic Po licy on Economic and Fiscal Management and Reform 2015 " (decided by the 
Cabinet on June 30, 2015).  
 
Q12. Can Japan provide information on the implementation and effect of the guideline?  
 
RESPONSE  
Based on the contents and schedule in "Five Promises for Att racting Foreign Businesses to Japan ", 
The Government of Japan has been implementing measures to overcome language barriers, 
facilitate better internet connectivity, accommodate business jets at local airports, enhance 
educational environment for expatriate  children, and strengthen services to support foreign 
enterprises. Relevant information is available at:  
http://www.invest -japan.go.jp/promotion/promise_en.pdf  
The amount of inward FDI has been steadily increasing and the valuation on Japan as a business 
location by foreign enterprises has been improving.  
 
Q13: Does Japan have any plan to streamline and optimize procedures for the allocation of tariff 
quotas?  
Q14: If so, can Japan introduce the plan and the expected timetable?  
 
RESPONSE  
The method of quota  allocation and its administration is  publicly announced through 
WTO notifications and Government 's website and is conducted in a fair and transparent manner. 
The Government of Japan has no plan to change procedures for the allocation of tariff quotas.  
Q15: Why is the average bound rate (WTO definition) higher than that in the last review (the 
average bound rate mentioned in the report by the Secretariat in the last review was 15.2)?  
 
RESPONSE  
Although the method of calculation for the average bound rate st ated in the report is not clear, the 
Government of Japan has not changed the bound rates since the last review.  
 
Q.16.Does Japan have the intention in the future to further reduce the tariff peak in the area of 
agricultural products?  
 
RESPONSE  
The current level of agricultural tariffs was a result of the Uruguay Round (UR) negotiations. The 
Government of Japan cannot prejudge the future development of the negotiations.  
 
Q.17 No certificate reissuance for unused quotas will affect the actual completion rate of import 
quotas. Does Japan have any plan to adjust this practice?  
 
RESPONSE  
If any amount of the quota remains unallocated, METI will re -allocate the unallocated portion to 
any applicant requesting additional import quotas.  
METI has imposed penalties on importers in order to promote the full use of import quotas 
allocated to importers.  WT/TPR/M/351/Add.1  
 
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  Concretely speaking, METI decides to allocate an adequate amount of import quotas for applicants 
(importers) after carefully examining their past achievement in relation t o food product imports. 
METI does not allocate the import quota of marine products to an importer who fails to import 
more than 80% of its amount of import quotas allocated to the importer in the previous year, 
without rational reason.  
 
Q18. Can Japan intr oduce how Japan relaxes the requirements for associations to file an 
application for an anti -dumping or countervailing action? What is the reason for relaxation? Will 
the relaxation cause the abuse of trade remedy measures?  
 
RESPONSE  
While WTO Agreements h ave no provisions regarding requirements on industry associations to file 
an application on behalf of the domestic industry, Japan had requirements on industry associations 
in order to file an application. Japan amended Article 5 of the Cabinet Order Relat ing to Anti -
Dumping Duties and Article 3 of the Cabinet Order Relating to Countervailing Duties so that an 
industry association which has at least two domestic producers of the like products as its members 
can file an application. However, even after this amendment, Japan still has requirements that are 
not stipulated in WTO Agreements. Therefore, regarding China 's concerns, it is very unlikely that 
this amendment will lead to the abusive use of trade remedy measures in Japan.  
 
Q19. Can Japan introduce the implementation and effect of such tax reform agenda?  
 
RESPONSE  
You can see the snapshots of the tax reforms during the reviewed period in the websites below.  
http://www.mof.go.jp/english/tax_policy/tax_reform/fy2016/tax2016a.pdf  
http://www.mof.go.jp/englis h/tax_policy/tax_reform/fy2015/tax2015a.pdf  
Furthermore, the estimated revenue impacts of these tax reforms are as tables below.  
 
 WT/TPR/M/351/Add.1  
 
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Q 20: Can Japan introduce the situation and effect of operating STEs in Japan?  
 
RESPONSE  
Please refer to Japan 's notifica tion on STEs (G/STR/N/16/JPN).  
 
Q21. As indicated in the report, as at late March, 2016, the proportion of JIS with corresponding 
international standards was 54.6%, which is lower than 55.3% in Japan 's reply in the last review. 
What is the reason for the d ecrease?  
 
RESPONSE  
JIS standards are reviewed every year, and some outdated JIS standards are withdrawn. The 
numbers in the report are the result of such reviews.  
 
Q22. What specific measures has Japan taken to improve the educational environment for forei gn 
children?  
 
RESPONSE  
In "promise 4 " of "Five Promises for Attracting Foreign Businesses to Japan ", the Government of 
Japan will enrich educational environment for children from overseas, and ensure people receiving 
an education in Japan to be able to com municate smoothly in English. Please refer to specific 
measures about "promise 4 " at: 
http://www.invest -japan.go.jp/promotion/promise_en.pdf  
 
Q23. Please introduce in detail the purpose and background of this procedure and the specific 
procedural design.  
 WT/TPR/M/351/Add.1  
 
- 133 - 
 
  RESPONSE  
The JFTC gives information about the purpose and background of this procedure and the specific 
procedural design on its website. Please refer to the following URL.  
http://www.jftc.go.jp/en/pressreleases/yearly -2013/Dec/individual131209.files/Attac hment2.pdf . 
 
Question 24: Please introduce in detail the specific contents of the new hearing procedure and the 
procedural design.  
 
RESPONSE  
In the new hearing procedure, a designated hearing officer will make the investigators for the case 
explain to the concerned parties the contents of the draft orders, including the facts found by the 
JFTC and the main evidence supporting them. The concerned parties may, following the 
investigators ' explanations, raise questions to the investigators (if any), present th eir arguments, 
and submit relevant evidence.  
The designated hearing officer will prepare a report describing the issues raised at the hearing and 
submit it to the JFTC. The JFTC is to give due consideration to this report in making its final 
decision.  
 
Q25. Japan raised the consumption tax rate in 2014, but another tax hike formerly planned in 
2017 was postponed to 2019. Has Japan conducted any specific effect evaluation on the 
adjustment of the consumption tax rate (in terms of domestic consumption, fiscal  revenue, 
inflation rate, etc.)? If any, according to the evaluation result, which aspects will be affected by 
such increase of the rate?  
 
RESPONSE  
The increase of the consumption tax rate is thought to have various effects on the economy, such 
as a surge  in last -minute demand and the ensuing reverse effect, and the effect from decrease in 
real income due to inflation. The consumption tax hike in April 2014 is thought to have had an 
effect on domestic consumption, fiscal revenue and inflation rate.  
 
Q26. A re the tax incentives for companies that relocate their headquarters or enhance and expand 
the operations of their headquarters applicable to the newly established headquarters? Are there 
any preferential policies for site selection or incentives for the i ndustry, products, etc. available to 
the branches newly established in Japan by overseas companies?  
 
RESPONSE  
As stated in paragraph 3.82 of the Report, Japan has the tax systems to strengthen regional bases 
for supporting tax measure for the purpose of re mediation of concentration in Tokyo and revitalize 
regional economy. This system can be applied in cases where a corporation which has been 
certified under Local Revitalization Act. (Act No. 24 of 2005) relocates its headquarter function 
from the 23 wards to the building newly expanded in other regions, or expands its headquarter 
function in other regions. Therefore, it is not envisaged that the system is applied at the timing of 
the establishment of a corporation.  
 
Q27. As for tax incentives for companies that relocate their headquarters from Tokyo's 23 wards to 
other regions, would Japan please further explain the specific contents of policies, the scale of tax 
incentive and tax reduction, the number of actually relocated enterprises and others?  
 
RESPONSE  
Regarding the specific contents of policies and the tax incentive, it is as shown in table3.9 on page 
47-48 of the report.  
No data is available for the number of actually relocated enterprises and the actual tax reductions 
for relocated enterprises. For yo ur information 13 enterprises ' plans for relocation were approved 
by the end of February2017.  
 
Q28. Will there be any new incentives to replace the above -mentioned incentives that will be 
abolished in March 2017, and what are the specific provisions?  
 
RESPONSE  
There is no substitute for the incentives.  
 WT/TPR/M/351/Add.1  
 
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  Q29. Would Japan please specify the tax incentives applicable to the innovative basic research, the 
scale of such incentives, as well as the scope, applicable conditions and the scale of R&D expenses 
qualif ied for such incentives?  
 
RESPONSE  
All of the categories listed on "Table 3.11 " are applicable to innovative basic researches. Please 
refer to the below  "Tax Incentives for Technological Innovation ", which shows the summary of the 
tax incentives.  
 
<Permanent measures>Volume of tax Credit  = incremental R&D expenditures ×
5-30% (＊)
↓
The amount of the R&D expenditures in current year exceeding the average 
amount of R&D expenditures for the 3 preceding years.  
In addition, the amount of the R&D expenditures in current year must exceed 
the amount of the R&D expenditures of the both 2 preceding years. 
＊The higher the rate of incremental R&D expenditures is, the 
higher the tax credit rate will be.SelectiveVolume of tax Credit  = excess of  R&D 
expenditures over 10% of the average sales  
× special formula (% )
for SMEs : across -the-board  12%Volume 
of tax credit ×8＋ ％ ×0.2SalesTotal R&D expenditure
《Ｕｐｔｏ１０％》Special formula  = (current R&D expenses / 
average sales -10%) x 0.2.
Total R&D 
expenditureCeiling of Incentives; Up to 25% of corporate tax dueCeiling of Incentives; Up to 10% of corporate tax due <Temporary measures> (until 2016FY) 
Incremental Base High level base
Volume Base
＝Volume 
of tax credit ×30％or 20%(＊)Special R&D 
expenditureCeiling of Incentives; Up to 5% of corporate tax dueOpen -Innovation Base
＝<Permanent measures>
＊Collaborative research with universities or governmental research institutes : 30%
Collaborative research with other companies : 20%Tax Incentives for Technological Innovation
％
 
 
Q30. In addition to the tax incentives specially offered for the innovative basic research, what tax 
incentive policies are released by Japan for the promotion of scientific innovation during the review 
period?  
 
RESPONSE  
The subjec t of tax credit system for R&D is not limited to basic researches but also applied 
researches and experimental developments.  
 
Q31. As for the tax incentives for R&D, in addition to special R&D cost based credit for the 
universities or public research insti tutions, which enterprises are entitled to such tax incentives? 
Are there any special requirements, identification standards or approval procedures?  
 
RESPONSE  
Special R&D cost based credit applies to joint R&D with other non -public corporations, as well as  
universities and public research institutions. For the application, enterprises are required to 
conclude qualified contracts for joint R&D with their partners. In addition, the expenses incurred 
for joint R&D need to be audited by outside experts and conf irmed by their partners.  
 
Q32. Through which channels can enterprises be informed of above -mentioned incentive policies? 
Would Japan please explain how to guarantee that enterprises can be informed and entitled to 
such tax incentives in time?  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
Detailed information for private enterprises about the tax credit for R&D is available the website of 
the Ministry of Economy, Trade and Industry.  
 
Q33. Are the "guidelines for procedures to determine the details of 'reasonable remuneration or 
other economic profits '" mentioned in the Report only instructional guidelines or those that must 
be followed faithfully by employers and employees? In addition to procedures, do the guidelines 
include provisions on the standard or calculation method of remuneration? Is there a Chinese or 
English version of the guidelines?  
 
RESPONSE  
Yes, the guidelines are instructional guidelines drafted from the perspective of due process 
between employer and employees.  They do not include any specific calculation method.  Their 
English translation will be available (its publication date is not yet decided.).  
 
Q34. Having directly attributed an invention made by an employee to the employer, how does the 
Act ensure that the employee may receive the "reasonable remuneration or other economi c 
profits " as prescribed? How to prevent employers from unreasonably depriving employees ' right to 
receive remuneration?  
 
RESPONSE  
If an employer does not provide relevant employees with reasonable remuneration or other 
economic profits, or they deprive em ployees ' right thereto, such employees may claim for 
reasonable remuneration etc. against the employer through civil lawsuits.  
 
Q35. How many patent applications take advantage of the period of exception to lack of novelty 
each year in Japan? Has research been conducted on the demands of applicants to extend the 
periods of exception to lack of novelty? If so, can Japan provide the main conclusion?  
 
RESPONSE  
In Japan, the number of patent applications with an application for exceptions to lack of novelty of 
invention was about 3200 in 2015. In February 2011, the Intellectual Property Policy Committee of 
the Industrial Structure Council reported that the period of exception should be determined taking 
into account the trend of international discussion due to t he existence of the opinion that the 
period should be internationally harmonized etc.  
Accordingly, JPO had gathered user 's view in this regard. Finally, it is decided to extend the period 
to one year.  
 
Q36. Which department has taken the lead in forming th e committee on trade facilitation? Is there 
a communication and contact mechanism with the business community? What are the specific 
contents of the work done by the committee, and what results have been achieved?  
 
RESPONSE  
"Liaison Conference on Trade Fac ilitation (LCTF) " was set up, in accordance with the provision of 
Agreement on Trade Facilitation, by the coordination of the Ministry of Foreign Affairs with other 
ministries concerned. At this point, there is no communication and contact mechanism with t he 
business community. The LCTF was set up in April 2015, but the meeting has not been held so far.  
 
Q37. How to effectively implement safe access before the arrival of goods and realize trade safety 
and facilitation through risk management?  
 
RESPONSE  
Japan Customs realizes trade safety and facilitation through assessing risks from importers ' 
declarations and carrying out a physical examination after the arrival of goods only when deemed 
necessary.  
 
Q38. How to realize the connection and coordination betwee n risk management and PCA? Please 
introduce relevant working procedures and mechanisms.  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
Japan Customs selects importers for post -clearance audit in a risk -based manner, according to 
selectivity criteria, including their import volume and relevan t information contained in their import 
declaration.  
 
Q39. Please introduce the progress of implementation of the objectives of the plan so far.  
 
RESPONSE  
The target of halving the ratio of the primary deficit to GDP from the FY2010 by FY2015 ( -3.2% of 
GDP in FY2015) has been achieved (the actual value is approximately -3.0%).(i)  
To achieve a primary surplus by FY2020 and to steadily reduce the debt to GDP ratio thereafter, 
the Government of Japan has established a concrete medium -term plan in 2015. In acco rdance the 
plan, the government is undertaking the measures intended to achieve economic revitalization and 
fiscal consolidation from both expenditure and revenue sides. (ii and iii)  
(Note) As written in report paragraph 2.5, the Government has delayed the  planned second tax 
rate hike to 10% until October 2019.  
 
Q40. As the second consumption tax hike has been postponed to 2019, what impact will it have on 
the realization of the policy objectives of the plan, especially the objective in debt reduction? Have  
Japanese governmental departments conducted evaluation on the extent of the impact in 
advance? If so, what are the evaluation results?  
 
RESPONSE  
The consumption tax hike to 10% was postponed to October 2019, but the hike will be reflected to 
the national tax revenue almost completely by FY2020, therefore the postponement will not affect 
the goal of fiscal consolidation target to achieve a primary surplus by FY2020.  
 
Q41. According to some enterprises, a number of Japanese technical standards in the food fi eld 
are much stricter than international standards, constituting trade barriers. Would Japan explain 
how to minimize the negative impact of such measures on trade and prevent the discrimination 
against or disguised restriction on international trade in the  risk evaluation of such measures as 
non-conforming to relevant international standards according to SPS Agreement?  
 
RESPONSE  
The Government of Japan takes into account the Codex standards whenever reviewing Maximum 
Residue Limits (MRLs) for agricultural c hemicals and food additive standards, in accordance with 
Article 3.1 of the WTO SPS Agreement. The Government of Japan, when necessary, sets food 
standards different from Codex standards based on scientific evidence. For example, more 
restrictive MRLs of p esticide in some commodities can be established to protect consumers' health 
if dietary exposure estimated from national consumption data is above health -based guidance 
value (e.g. ADI, ARfD). This measure is consistent with Article 3.3 of the SPS Agreemen t. 
The Government of Japan continues to make an effort to establish food standards on the basis of 
sound science and in harmony with international standards.  
 
Q42. Please explain why the planned self -sufficiency target for FY2025 is different from that for  
2020, especially why the target calculated on calories basis is made lower while the target on a 
production value basis is made higher.  
 
RESPONSE  
The Basic Plan in March 2010 set the self -suffici ency ratio target of 50% for FY 2020 as a high 
target that ca n be achieved when all available resources are fully utilized. On the other hand, the 
actual caloric self -suffici ency ratio remains 39% since FY 2010. Focusin g more on the feasibility in 
FY2025, the Basic Plan in March 2015 set the self -suffici ency ratio ta rget of 45% for FY 2025.  
The two Plans assume different production patterns across agricultural products. Shift in 
production from one product to another can contribute to a lower caloric basis ratio and a higher 
value basis ratio, for example, when it is f rom one high caloric but low priced product to another.  
 
Q43. Please explain why the Agricultural Land Act 2015 amendment relaxes conditions for a 
company to use agricultural land. Please explain what specific activities the companies leasing 
agricultural land are engaged in, whether the purpose of improving land use efficiency set in the 
Agricultural Land Act 2009 amendment has been fulfilled and whether such relaxation will cause 
the land to be diverted to other uses? Please introduce the "agricultural pr omotion region -based WT/TPR/M/351/Add.1  
 
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  system and agricultural land diversion licensing system mentioned in Japan 's reply to China 's 
questions (Question No.43 and 44) regarding agricultural land act in the last review on Japan 's 
policy.  
 
Q 43-1. Why the Agricultural Land ac t 2015 amendment relaxed conditions for a company to use 
agricultural land?  
 
RESPONSE  
The purpose is to promote business diversification such as processing and selling by corporate 
farmers permitted for farmland ownership.  
Q 43-2. What specific activities  the companies leasing agricultural land are engaged in?  
 
RESPONSE  
Leased corporate farmers shall cancel their contract and return their tenanted farmland in original 
condition if they use farmland inappropriately under the Act of Agricultural Land.  
 
Q 43-3. About whether the purpose of improving land use efficiency set in the Agricultural Land 
Act 2009 amendment has been fulfilled?  
 
RESPONSE  
The amendment in 2009 enabled corporate farmers which are not permitted for farmland 
ownership to enter in agricultu re by leasing farmland. As a result, entries of corporate farmers by 
leasing increased from 175 in 2010 to 2,222 in 2016. They have used farmland effectively.  
 
Q 43-4. About whether such relaxation will cause the land to be diverted to other use?  
 
RESPONS E 
No, we never heard of such events.  
 
Q43-5. About "agricultural promotion region -based system " and "agricultural land diversion 
licensing system " 
 
RESPONSE  
The "Agricultural Promotion Area System " and the "Farmland Conversion Permission System " are 
based o n the Act on Establishment of Agricultural Promotion Regions (Act No. 58 of 1969) and the 
Agricultural Land Act (Act No. 229 of 1952). Based on these two systems, the government 
maintains superior farmland.  
 
Question 44:  In this paragraph, signing trade ag reement mentioned in the part of the second 
arrow of Abeconomics is seen as an important booster to integrate Japan into the world economy. 
What impacts will America 's withdrawal from TPP have on Japan 's advancing the progress of the 
second arrow? Currentl y, does Japan have an alternative trade negotiation plan or arrangement?   
 
RESPONSE  
The TPP Agreement is intended to establish new common rules for the 21st century in the Asia -
Pacific region and form a huge free and fair economic zone. It also seeks to de epen and broaden 
economic ties among countries and regions that share fundamental values such as freedom, 
democracy, basic human rights, and the rule of law, and is hence strategically significant in terms 
of pursuing further regional stability.   In light of the significance of the TPP, the Government of 
Japan notified the Depositary of the completion of Japan 's domestic procedures for the TPP. The 
Government of Japan intends to continue to closely consult with other original signatories on the 
future of th e TPP and tenaciously encourage them to promptly complete their domestic procedures 
toward the entry into force of the TPP Agreement. In any case, the Government of Japan will 
execute the Growth Strategy and keep advancing an economic virtuous circle.  Japan will also 
strive on the progress of other negotiations, such as the Japan -EU Economic Partnership 
Agreement, RCEP, and Japan -China -Republic of Korea FTA.  
 
Q .45  Apart from the agencies introduced above, are there any other export trade promotion 
agencies ? How does each agency work together to promote export?  
 
RESPONSE  
Regarding export, many agencies are involved in various ways, it is difficult to enumerate.  WT/TPR/M/351/Add.1  
 
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  Q46. Please list export insurance products provided by Japanese commercial export and credit 
insurance organizations.  
 
RESPONSE  
There are some commercial insurance companies in Japan which provide export credit insurance, 
however we do not have detailed information.  
 
Q47. Generally, what is the longest payment term for the loans released by Japanese ex port and 
credit organizations to the borrowers engaged in trade business?  
RESPONSE  
Maximum repayment term for export credit insurance shall be consistent with OECD arrangement. 
(Please see the arrangement: 
http://www.oecd.org/officialdocuments/publicdispla ydocumentpdf/?doclanguage=en&cote=tad/pg(
2017)1 )  
 
Q48. It is indicated in the above two paragraphs that, in FY2016, Japan 's average applied MFN 
tariff rate was higher than that in FY2014 mainly because the ta rrif rate is higher when 
non-ad valorem tarrif is converted to ad valorem equivalent. Given that non -ad valorem tarrif is 
applied to the large -quantity textile and apparel products that China exports to Japan, does Japan 
have, in the future, any arragement for tarrif concession arrangement for products  (such as textile 
and apparel products) subject to non -ad valorem tarrif. If any, please describe in detail.  
 
RESPONSE  
In regards to textile and apparel goods, non -ad valorem  tariffs including selective duty are 
applicable to a large number of cotton yarns  and cotton fabrics in HS 52, as well as two other 
products, namely 5604.90 -910 and 5811.00 -023. Certain volume of them is imported from China 
to Japan. Currently, the Government of Japan is not considering tariff concession arrangements for 
these products  in the future.  
 
Q49. It is mentioned above that Japan offers preferential tariff rates to 138 developing countries 
and 5 territories under the GSP. China remains the largest beneficiary of Japan 's GSP scheme. 
Does Japan have any arrangement to revise the application principle (such as the countries to 
which the preferential tarrif rates are applicable) of the preferential tariff rates? If any, please 
specify the revision contents and what impacts will the new scheme bring to the export of Chinese 
products to Japan 's market.  
 
RESPONSE  
With a view to optimizing the allocation of benefit of the GSP to beneficiary countries/territories, 
the Government of Japan has reviewed the criteria of the system of graduation from GSP, in which 
countries/territories having achieved certain economic development are graduated from the GSP 
treatment. More specifically, in addition to the existing graduation criterion, i.e. 
countries/territories being categorized as "high income economy " for three consecutive years 
based on Worl d Bank Analytical Classifications, a new criterion will be added as those being 
categorized as "upper middle income economy " or higher and whose export volume (in value 
terms) is estimated by the WTO as constituting 1% or more of total volume of global exp ort. As a 
result of the review, several countries, including China will be likely to be graduated from the list 
of beneficiary countries. As GSP application rate against total import volume from China remains 
low, new criterion has little impact on the exp ort of Chinese products to Japan 's market. The 
measure will be implemented from April 2018 in a phased manner.  
 
Q50. For small and medium sized enterprises (SMEs), do Japanese official export credit agencies 
such as JBIC and NEXI offer export supporting an d guaranteeing measures? If yes, please explain 
in detail.  
 
RESPONSE  
Yes. JBIC and NEXI provide Japanese companies including SMEs with export loans and export 
credit insurance. JBIC provides export loans to overseas importers and financial institutions to  
support finance exports of Japanese companies including SMEs mainly to developing countries. For 
the further information, please see the brochure http://www.jbic.go.jp/wp -
content/uploads/page/2016/12/53107/jbic -brochure -english.pdf (Page 18)  
NEXI has an e xport credit insurance product which is dedicated to support SMEs. The product 
covers risk of export contracts with payment period (usance) of 180 days or less, and cover ratio WT/TPR/M/351/Add.1  
 
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  is 95%. For the further information, please see the brochure 
http://www.nexi.go .jp/corporate/booklet/pdf/nexi -2015_e.pdf (Page 9).  
 
Q51. For the export of agricultural, forestry, animal husbandry, and subsidiary products, does the 
Ministry of Agriculture, Forestry and Fisheries of Japan, apart from playing its own functions, work 
together with official export credit insurance agencies to introduce export supporting measures? If 
there are any measures, please explain and describe the impacts.  
 
RESPONSE  
Nippon Export and Investment Insurance (NEXI), the official export credit agency of Japan, 
supplies export credit insurance which also covers organizations related to agriculture, forestry and 
fisheries. MAFF provides information on the insurance by NEXI to related organizations. The 
program is described at the website below.  
Export Bill Insurance http://nexi.go.jp/en/products/types/bill.html  
Export Credit Insurance for SMEs and AFF Sector http://nexi.go.jp/en/products/types/smes.html  
Export Credit Insurance http://nexi.go.jp/en/products/types/export.html  
 
Q52. For the export of products o ther than agricultural, forestry, animal husbandry, and subsidiary 
products, what major supporting measures do Japan 's export and credit agencies have? Please 
give some examples.  
 
RESPONSE  
Regardless of types of products, major supporting measures of Japan 's export and credit agencies 
are JBIC's export loans and NEXI's export credit insurance.  
 
Q53. The claims paid in the Table rose from 3,102(¥ million) in 2014 to 22,395(¥ million), 
registering a peak value since 2011. Please explain the reason for the ris e of claims paid.  
 
RESPONSE  
Most of claims paid under Export Credit Insurance in the year 2015 were related to the political 
risk event of Venezuela. Please refer to FY2015 Annual Report: 
http://nexi.go.jp/en/publications.html （page10） 
 
Question 54. Please introduce in detail the main amended contents of the Banking Act and the 
main contents of a series of new and stricter rules regarding licensing standards, information 
obligations, maintenance of assets in Japan, and supervisory powers in case of bankruptc y or 
reorganization proceedings.  
 
RESPONSE  
Please refer to paragraph 4.85 -4.91 in the report WT/TPR/S/351.  
 
Question 55. Please introduce the implementation results of a series of new and stricter rules 
regarding licensing standards, information obligation s, maintenance of assets in Japan, and 
supervisory powers in case of bankruptcy or reorganization proceedings.  
 
RESPONSE  
The amendments of the Banking Act as well as the Comprehensive Guidelines for Supervision of 
Major Banks have enabled the Financial Ser vices Agency to monitor banks ' operation in a more 
proper manner.  
 
Question 56. Please evaluate the impacts of the revision to this legal provision on fair competition 
in the financial sector.  
 
RESPONSE  
The revision is to allow banks to flexibly provide ca pital in cases where it is anticipated the capital 
can contribute to business reconstruction and revitalization of the regional economy. This is not to 
affect fair competition in the financial sector.  
 
Question 57. Please introduce the specific measures ta ken by Japanese financial regulatory 
departments after the revision to the legal provision.  
 WT/TPR/M/351/Add.1  
 
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  RESPONSE  
The Financial Services Agency monitors banks ' operation in accordance with the revised 
Comprehensive Guidelines for Supervision of Major Banks.  
 
Q58. Wha t caused the dramatic decline in the share of financial services in Japan 's GDP in 2014?  
 
RESPONSE  
We could not find any specific factors that explain the decline of the share of financial services in 
the Japanese GDP. Please note that we do not consider i t to be a "dramatic " decline in 2014.  
Question 59. What caused the reduction in the number of branches of foreign banks in Japan in 
2015? Which policies have been adopted in Japan in recent years that may affect the operation of 
foreign banks?  
 
RESPONSE  
While the decision to withdraw operation from Japan depends on each banks ' own management 
judgment, the macroeconomic environment at that time (e.g. sovereign debt crisis in Europe) may 
be considered as a factor choosing withdrawal from Japan.  
 
Q.60 In 2015,  did the services exports and imports decline include that in medical service, 
especially the Traditional Chinese Medicine service? If so, what 's the amount of TCM service 
decline?  
Q.61 In services trade with China for Japan, what 's the percentage of the T raditional Chinese 
Medicine service trade?  
 
RESPONSE  
The Government of Japan has no available statistical data regarding trade in medical services 
(including Traditional Chinese Medicine) to answer these questions.  
 
RESPONSE  
Please provide the related deta iled measures which have been or will be taken to attract the 
investments.  
 
RESPONSE  
Firstly, the Tokyo One -Stop Business Establishment Center was established in the National 
Strategic Special Zones to promote foreign -owned and domestic venture corporation s; the Center 
offers comprehensive support for procedures related to corporate foundation. Secondly, the 
current requirements for the Investory/Business Manager visa category (namely, the need to 
either employ at least two full -time employees or invest a m inimum amount of five million yen) 
can be relaxed in the NSSZs provided that an agreement has been reached between the national 
government, local authorities and the private sector.  
 
Q63. Please provide the detailed policies or regulations related to the n ational strategic special 
zones.  
 
RESPONSE  
The National Strategic Special Zones(NSSZs) grants special provisions in a variety of fields (78 
total reforms have ever been realized by the NSSZs as of March 23, 2017, including the 
nationwide measures) with the  aim of developing the easiest environment for doing business in 
the world to enable private sector to fully show their abilities which link to economic growth. In 
addition to regulatory reforms, tax reliefs and interest subsidies are also introduced in th e NSSZs.  
 
Q64. Please provide the detailed measures regarding the aforementioned factors.  
 
RESPONSE  
The Government of japan, aiming to realize "the most business -friendly country in the world ", has 
implemented regulatory reforms in such fields as energy, h ealthcare and agriculture, and will 
introduce a new methodology for regulatory reforms from the business perspective.  
In addition, the Government of Japan is progressing a comprehensive economic policy package to 
sustainably revive the Japanese economy, wh ich includes measures changing work style and 
diversifying the labor force, enhancing corporate governance and reforming corporate tax. This 
program is "Japan Revitalization Strategy ". You can view the details at:  
http://www.kantei.go.jp/jp/singi/keizaisai sei/pdf/2016_zentaihombun_en.pdf  WT/TPR/M/351/Add.1  
 
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  Q65. Please clarify the detailed enforcement policy or condition for the local company to get the 
incentives as per Industrial Competitiveness Enhancement Act and whether there is National 
treatment for the foreign -invested  company.  
 
RESPONSE  
If a company acquires and places into service in Japan, between the effective date of the Act and 
31 March 2017, any machinery, tools, appliances, buildings, facilities pertaining to a building 
structures, or software, which is used as equipment for production and qualifies as productivity -
enhancing equipment, and which has a unit cost above a set threshold, the company can apply the 
tax relief measure. A foreign -invested company which acquired and placed into service equipment 
in Japan is equally eligible for the incentives as long as it fulfills the necessary conditions.  
 
Q66. Please introduce the taxation system of aviation fuel (consumption) tax, including objects of 
taxation, tax rates and tax payment procedures, etc.    
 
RESPONSE  
The Aviation Fuel Tax is imposed on aviation fuel loaded on an aircraft in the territory of Japan 
(Aviation fuel for international airlines is exempted). Taxpayers of the Aviation Fuel Tax are 
generally the owners of an aircraft. The Aviation Fuel Tax is levi ed based on the quantity of 
aviation fuel loaded on an aircraft. The reduced tax rate 18,000 yen per kiloliter is applied to the 
aviation fuel loaded from 01/04/2011 to 31/3/2017, which will be extended until 31/3/2020. 
Taxpayers are required to file a ret urn and pay the tax by the end of the month following the 
loading of fuel on their aircraft. [cf. tax revenue (FY2017 budget): 66.9 billion yen]  
 
Q67. Please introduce the concrete use of incomes from aviation fuel (consumption) tax.  
For example, whether the funds are used as ear -marked, and whether the funds are especially 
used to support civil aviation construction and development.  
 
RESPONSE  
Incomes from aviation fuel tax are transferred to a special account for airport construction and 
used as financial  resources to construct and/or upgrade airports. A part of such incomes is 
disposed to local public authorities to prevent obstacles such as aircraft noise.  
 
Q68. Please introduce in detail the management system of airports in Japan, including airport 
construction examination and approval, the operation and management mode, etc. In the case of 
solely state -owned and state -owned majority shareholding airports, are there special assistance or 
subsidy policies in terms of investment, construction, operation an d charging? Which civil transport 
airports should stay solely state -owned or state -owned majority shareholding airports?  
 
RESPONSE  
Regarding examination and approval for airport construction, it is required to obtain an approval in 
accordance with the stan dards stipulated in Article 39 of the Civil Aeronautics Act and Article 79 of 
the Ordinance for Enforcement of the Civil Aeronautics Act prior to such construction. Also, it is 
required to undergo an inspection in accordance with Article 42 of the Civil Ae ronautics Act when 
construction work of the approved facilities is completed.  
As state -owned airports are airports constructed by the national government, such construction 
and management (operation and maintenance) are all conducted by the national govern ment.  
Regardless of state -owned or company -owned airport, airport operators are required to manage 
their airports according to the specific standards defined in the Civil Aeronautics Law. These 
standards are compliant with Annex14.  
And, JCAB requires each airport operator to develop the detail management procedures in the 
Airport Safety Management Manual(for Safety) and submit the m anual to JCAB.  
Narita International Airport Corporation, New Kansai International Airport Co., Ltd., and Central 
Japan Interna tional Airport Co., Ltd. are entitled to be granted preferential tax measures such as 
deferred tax, tax exemption, and tax base relief measure.  
Civil transport airports that should stay solely state -owned or state -owned majority shareholding 
airports are m ainly "airports to be hub for international air transport network or domestic air 
transport network ". 
 
Q69. It is stated in the report that, as for the telecommunications sector, in keeping with the 
spread of the smart phone and diversification of public w ireless LAN, the definition of a public 
wireless LAN access service was widened in order to impose obligations on Telecommunications WT/TPR/M/351/Add.1  
 
- 142 - 
 
  Carriers to explain conditions of offering services. what is the definition of a public wireless LAN 
access service current ly provided by Japan? How is the definition imposing obligations on 
Telecommunications Carriers to explain conditions of offering services?  
 
RESPONSE  
In accordance with the Rules for Reporting on Telecommunications Business (Ministerial Ordinance 
of MPT No . 46 of 1988), a public wireless LAN access service is defined as "a telecommunication 
service (excluding those listed in items 5 and 11 to the previous item) that mediates 
communications to Internet connection points using terminal system transmission lin e facilities 
whose terminal, connected to the user 's telecommunications facilities, is connected by wireless, or 
using terminal facilities which are provided for telecommunication services (limited to terminal 
facilities which communicate with mobile termi nal facilities) ". When concluding contracts, Article 
26 of the Telecommunication Business Act sets a regulation that obliges telecommunication 
carriers, etc. to explain to the contractor the conditions of offering services that should be 
understood to a m inimum. Thus, the public notice that designates the scope of the service under 
the obligation of explanation sets the same regulation, and thereby, obliges telecommunication 
carriers providing a public wireless LAN access service to explain the conditions of offering 
services.  
 
Q70. Please introduce the details of relevant policies for promotion (For too much content, list 
specific names of relevant policies and links to detailed contents).  
 
RESPONSE  
"Five Promises for Attracting Foreign Businesses to Japan " includes measures to overcome 
language barriers, facilitate better internet connectivity, accommodate business jets at local 
airports, enhance educational environment for expatriate children, and strengthen services to 
support foreign enterprises. The re levant information is available at: http://www.invest -
japan.go.jp/promotion/promise_en.pdf  
"Policy Package for Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub " 
includes measures to attract foreign companies through promotional act ivities and resolve issues 
hindering foreign companies ' entry into Japan. The relevant information is available at at: 
http://www.invest -japan.go.jp/promotion/policy_package_en.pdf  
 
Q71. Please introduce the basic Japanese investment policies including the  foreign investment 
system (Japanese investment management and promotion authority, relevant investment laws, 
etc.), limitations on investment industry (industrial protection, limitations and prohibiting 
conditions; franchising and license; limitations on regulation of financial market, etc.); relevant 
investment provisions (provisions on investment mode, minimum registered capital, minimum 
employment proportion of local employees, approval procedures for foreign investment, etc.).  
 
RESPONSE  
The government of Japan welcomes FDI, aiming to increase the amount of inward FDI to ¥35 
trillion by 2020 (¥24.4 trillion at the end of 2015).  One of typical relevant investment laws is the 
"Foreign Exchange and Foreign Trade Act ", which requires reporting of entities to  do FDI. In the 
other, the Government of  Japan does not regulate FDI except to only a few businesses. You can 
view the "Foreign Exchange and Foreign Trade Act " at: 
http://www.japaneselawtranslation.go.jp/law/detail/?id=2076&vm=04&re=01&new=1  
In the context  of promotion activities, the Government of Japan has been improving Japan's 
business and living environment to attract foreign investment into Japan, under Council for 
Promotion of Foreign Direct Investment in Japan. Japan External Trade Organization (JET RO) also 
promotes FDI into Japan as the investment promotion agency.  
 
Q72. Please introduce the main measures of the "Policy Package for Promoting Foreign Direct 
Investment into Japan to Make Japan a Global Hub " and the key sectors that will benefit from i t. 
 
RESPONSE  
Hub" includes measures to attract foreign companies through promotional activities and resolve 
issues hindering foreign companies ' entry into Japan.  
In particular, the Government of Japan is discussing simplification of regulations and 
adminis trative procedures associated with FDI into Japan on the Working Group for Revising 
Regulations and Administrative Procedures. The working group adopted the "Immediate Report " in WT/TPR/M/351/Add.1  
 
- 143 - 
 
  last December and will draw a conclusion around this spring. You can view the  "Policy Package for 
Promoting Foreign Direct Investment into Japan to Make Japan a Global Hub " at: 
http://www.invest -japan.go.jp/promotion/policy_package_en.pdf  
You can view the "Immediate Report " at: 
http://www.invest -japan.go.jp/promotion/immediate_repo rt_en.pdf  
These measures do not target any specific sectors.  
 
Question 73. What is the specific implementation status of the measures taken by Japanese 
governmental departments?  
 
RESPONSE  
In December 2016, the Financial Services Agency invited public comme nt for the draft of related 
orders and ordinances, and is in the process of assessing the comments submitted. The amended 
Acts, related orders and ordinances will be effective in this April.  
 
Q74. It can be seen from the Report by the Secretariat (tables 3 .32, 3.33 and 3.34) that the 
numbers of patent, utility model and design applications submitted by Japanese applicants within 
their country have all gradually decreased. Has Japan analyzed its main reason?  
 
RESPONSE  
For patent and design applications, the main reason for the decrease is that applicants have 
become more strictly selective in filing applications while IP strategies of companies, etc. have 
been shifting from quantity to quality.  
For utility model, the main reason for the decrease is that we ad opted non -substantive 
examination principle.  
 
Q75. Why is it stipulated that invalidation requests may only be submitted by interested parties? 
How to identify interested parties?  
 
RESPONSE  
The Patent Act revised in 2014 stipulates that only interested per son can request for invalidation 
trial, taking into account the different characteristics of the systems between the "invalidation 
trial" and the "opposition to the granted patent ", the latter of which was introduced in the revision. 
The former aims to res olve disputes between the parties concerned, and the latter aims to review 
a patent right at an early stage after granting.  
If a demandee contests the claimed interest and when the interest of the demandant is not clear, 
a panel asks the demandant to clari fy the proprietary interest. Subsequently, the panel proceeds 
with the ex officio investigation on the interest through inquiry, etc.  
In addition, if the panel determines that a demandant for invalidation trial is not an interested 
person, the request for invalidation trial will be dismissed.  
 
Q76. In the past two years, how many cases of patent invalidation and how many cases of patent 
opposition have been respectively submitted by the public each year?  
 
RESPONSE  
The number of requests for patent invalidat ion trial is 227 in 2015 and 140 in 2016 respectively.  
The number of requests for opposition to the patent is 364 in 2015 and 1,214 in 2016 respectively.  
 
Q77. It is understood that in order to establish a patent firm in Japan, one has to first undergo 
industrial and commercial registration with the local legal department and then put it on records 
with the Patent Attorneys Association. In practice, is it the legal department or the Patent 
Attorneys Association that is responsible for examining whether the patent firm meets the 
provisions of articles 32, 33, 39, 45, 52 and 54 of the Patent Attorney Law? Besides, in the day -to-
day supervision of the agencies, how should local legal departments cooperate and coordinate with 
the Patent Attorneys Association?  
 
RESPONSE  
<Establishment of patent firm>  
A personal patent office can be established by registering a patent attorney at the Japan Patent 
Attorneys Association (JPAA) which is in charge of the registration (Article 17(2), Patent Attorney 
Act). WT/TPR/M/351/Add.1  
 
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  A patent firm  (i.e. patent professional corporation) shall be incorporated by registering the firm at 
the Local Legal Affairs Bureau (Article 44, Patent Attorney Act). Afterwards, the patent firm shall 
notify the Minister of Economy, Trade and Industry of such registra tion together with a certificate 
of registered matters and articles of incorporation within two weeks from the date of incorporation 
(Articles 45, Patent Attorney Act).  
Accordingly, the patent firm shall automatically be admitted to be a member of the JPAA  (Articles 
60, Patent Attorney Act). Please note that, only patent attorney(s) can apply for the registration of 
the above patent firm (Articles 37(1), Patent Attorney Act).  
 
<Responsibility to implement the Patent Attorney Act (Articles 32, 33, 39, 45, 52  and 54 )>  
The Minister of the Economy, Trade and Industry (the Japan Patent Office (JPO)) shall conduct 
disciplinary actions (Articles 32, 33, 39, and 54, Patent Attorney Act).  
The dissolution of patent firms shall be subject to the supervision of a cour t (Articles 52 and 52bis, 
Patent Attorney Act).  
When a patent firm has been incorporated / dissolved, the firm shall notify the Minister of 
Economy, Trade and Industry of the fact within two weeks from the date of its incorporation 
/dissolution (Article 45  and 52(3), Patent Attorney Act).  
 
＜Cooperation between the JPO and the JPAA ＞ 
The JPAA has a role to supervise its members by Patent Attorney Act (Article 56(2)).  
Under the supervision of the Minister of Economy, Trade and Industry, the JPAA supervises its  
members (patent attorneys). As part of that, the JPAA receives complaints and requests for 
disposition to patent attorneys.  
In addition to the supervision by the JPAA, the Minister of Economy, Trade and Industry also 
supervises patent attorneys through th e JPO and has the authority to make disciplinary actions to 
patent attorneys (Article 32, Patent Attorney Act). Dispositions by the JPAA and the disciplinary 
action by the Minister of Economy, Trade and Industry are made when, for example, patent 
attorneys  give disadvantage to their clients.  
 
Q. 78  It's reported that Japan had amended its domestic anti -dumping legislation on December 8, 
2016 which maintains the practice of "Surrogate Country " in their anti -dumping investigations 
against China. Please introd uce the specific amendments in details. Please explain whether the 
amendment complies with the WTO rules, in particular whether it fulfills the obligations set forth in 
Article 15 of the Protocol on the Accession of the People 's Republic of China?  
 
RESPONS E 
The Government of Japan amended the Guidelines for Procedures Relating to Countervailing and 
Anti-Dumping Duties to modify certain provision (7(6)2) in December 2016 
(http://www.customs.go.jp/kaisei/sonota/adgl_honbun.pdf).  
Japan 's domestic AD -related s ystem is formulated in accordance with the WTO Agreements, 
including the Protocol on the Accession of the People 's Republic of China, therefore, Japan is of the 
view that its domestic system is fully in line with the WTO Agreements.  
 
Q79. As for domestic a irlines, please introduce in detail the supervisory measures, means and 
results of JCAB and the principles on the allocation of its international air traffic rights.  
 
RESPONSE  
Any domestic airlines shall, when intending to alter its operation plan or the l ike, obtain approval 
from the Minister of Land, Infrastructure, Transport and Tourism, or notify the Minister of Land, 
Infrastructure, Transport and Tourism.  
There were 451 cases of approval or notification of change in operation plan from April 1, 2015 to  
March 31, 2016.  
In terms of maintaining the safe operation of domestic airlines, JCAB conducts safety audits at 
head offices or relevant facilities in order to confirm the state of safety management by the airlines 
and to instruct the needed correction me asures if inappropriate contents are observed by 
inspecting relevant documents and issues.   
The number of safety audits conducted from 1st April 2016 to 30th September 2016 was 233.  
As for the principles on the allocation of international air traffic right s, JCAB appropriately allocates 
them based on requests from domestic airlines.  
 WT/TPR/M/351/Add.1  
 
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  Q80. As for foreign airlines, please introduce in detail relevant approval procedures of JCAB on 
their unscheduled chartered flights, and the supervisory measures, means and re sults of JCAB on 
their scheduled and unscheduled air routes and flights.  
 
RESPONSE  
Any foreign airlines shall, when intending to operate a charter flight, obtain permission from the 
Minister of Land, Infrastructure, Transport and Tourism.  
Any foreign airli nes shall, when intending to operate a scheduled flight, obtain permission for 
international air transport services and approval for operation plans from the Minister of Land, 
Infrastructure, Transport and Tourism.  
In the approval procedure JCAB confirms t hat the traffic rights and capacity are within the air 
service agreement.  
From April 1, 2015 to March 31, 2016, there were 452 cases of permission for charter flights, 6 
cases of permission for international air transport services and 1,956 cases of permis sion for 
operation plans.  
 As a means of maintaining the safety level of foreign airlines, JCAB also conducts ramp 
inspections to inspect the aircraft of other contracting states of the ICAO convention, and to 
inspect the certificates and other documents p rescribed by the ICAO convention. The number of 
ramp inspections conducted in Japan from April 1, 2015 to March 31, 2016 was 696 for 99 foreign 
airlines.  
 
Q81. Is the Act on National Strategic Special Zones available on any official website? Is there a 
copy in English? How to obtain information on the policies and regulations of each National 
Strategic Special Zone?  
 
RESPONSE  
The following five preferential tax measures have been introduced in the National Strategic Special 
Zones (NSSZs):  
1. There are speci al depreciation and corporate tax deductions for business operators who have 
made capital investments (such as in machinery or construction) in certain fields. [Enacted on 
April 1, 2014]  
2. There is a 20% deduction towards corporate taxable income for star t-ups devoted to innovative 
projects in the fields of medical care, international, agriculture, and IoT utilizing special regulatory 
measures. [Enacted on September 1, 2016]  
3. There are gross income deductions for individuals who invest in small and mediu m-sized 
enterprises undertaking projects that promote groundbreaking R&D in the fields of agriculture, 
medical care, and biotechnology, or entrepreneurship and employment in those fields. This 
deduction is only applicable to those years in which such inves tments are made. [Enacted on July 
15, 2015]  
4. Tax measures equivalent to those applied to private urban renaissance programs under the 
jurisdiction of the Ministry of Land, Infrastructure, Transport and Tourism (such as increased 
corporate tax depreciatio n deductions and reduced Registration and License Tax) will be applied to 
those utilizing the exceptions provided for in the Urban Renaissance Special Measure Law in the 
NSSZs. [Enacted on April 1, 2014]  
5. There are income tax reductions and corporate tax  exemptions for transferring land to private 
urban development projects involved in the improvement of public facilities. [Enacted on July 15, 
2015]  
 
Providing these preferential tax measures promotes increased private capital investment in growth 
areas, c reates innovative new businesses, strengthens the international competitiveness of 
Japanese industry, and creates a hub for international economic activity.  
There are no investment procedures unique to the NSSZs.  
 
Q82. Is there any extension to or substit ute for the above -mentioned policy upon abolishment?  
 
RESPONSE  
This tax incentive was abolished on March 31, 2015. There are no plans for alternative measures.  
 
Q83. By what percentage will the actual tax rate be reduced? Are there any additional condition s 
for the reduction of corporate tax rates, or is the tax bearing ratio of the enterprise affected by the 
adjustment of other tax categories? Can enterprises be allowed to postpone the tax payment 
according to actual situations?  WT/TPR/M/351/Add.1  
 
- 146 - 
 
  RESPONSE  
The Government of Japan reduced the effective corporate tax rate to 29.97% in its FY2016 and 
FY2017 corporate tax reforms. The Government of Japan secured the resource necessary for the 
reduction by broadening the tax base.  
 
Q84. Would Japan please specify the contents of t he above -mentioned policies?  
 
RESPONSE  
Corporations in Japan that install energy -saving facilities can apply 30% special depreciation of the 
price of those facilities. Small and medium enterprises can alternatively apply 7% tax credit for its 
purchase of s uch facilities.  
Q85. Please explain the specific methods to "encourage the use of local products in school lunches 
and the consumption of agricultural, forestry and fishing products made in Japan ". Please explain 
how Japan will ensure related measures ' compliance with the non -discriminatory principle and 
national treatment principle.  
 
RESPONSE  
In light of food education, the Government of Japan provides information to students to raise 
awareness and appreciation of quality local agricultural products.  
In ad dition, the Government of Japan holds events related to agricultural products and agricultural 
activities in various regions of Japan for urban consumers.  
 
Question 86. Please introduce the adjustment direction and objectives of the reform, the 
implementat ion situation and effects.  
 
RESPONSE  
Taking into account the result of the Uruguay Round negotiations, the Government of Japan has 
reviewed its market price support policies and introduced and expanded direct payments. The 
Japanese -style direct payment was  introduced in 2015 as one of such direct payments. The 
Government of Japan will continue to pursue structural reform which fits the agricultural situation 
in Japan, in accordance with the WTO Agreement on Agriculture.  
In this connection, please also refer  to the Day 2 statement by Japan.  
http://www.mofa.go.jp/mofaj/files/000236703.pdf . 
 
 
15. RUSSIAN FEDERATION  
REPORT BY THE SECRETARIAT  
 
2 TRADE AND INVESTMENT REGIME  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
p.24, pa ra 2.10  
Japan has signed a total of 16 regional agreements with: Australia, Brunei Darussalam, Chile, 
India, Indonesia, Malaysia, Mexico, Mongolia, Peru, the Philippines, Singapore, Switzerland, 
Thailand, and Viet Nam, the ASEAN member countries, and the T rans-Pacific Partnership (TPP) 
member countries.3 All of these agreements (except for the TPP) have entered into force. Japan 
initiated the TPP approval process by submitting the agreement to the Diet in March 2016.  
 
Question 1  
With the recent "termination " of the TPP by the US Government, could Japan please elaborate on 
its current attitude regarding TPP?  
 
RESPONSE  
The TPP Agreement is intended to establish new common rules f or the 21st century in the 
Asia-Pacific region, and form a huge free and fair econ omic zone. It also seeks to deepen and 
broaden economic ties among countries and regions that share fundamental values such as 
freedom, democracy, basic human rights, and the rule of law, and is hence strategically significant 
in terms of pursuing further regional stability.  In light of the significance of the TPP, the 
Government of Japan notified the Depositary of the completion of Japan 's domestic procedures for 
the TPP. The Government of Japan intends to continue to tenaciously encourage other original WT/TPR/M/351/Add.1  
 
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  signatories to promptly complete their domestic procedures toward the entry into force of the TPP 
Agreement, in light of the significance of the TPP.  
 
2.4 Investment regime  
 
Question 2  
Could Japan please specify which economy sectors are subject to restric tions and/or prohibitions in 
terms of foreign investors (and their investments). Please outline these restrictions and/or 
prohibitions.  
 
RESPONSE  
Investments by foreign investors into certain sectors are subject to prior notification and 
screening, in acco rdance with The Foreign Exchange and Foreign Trade Act.  
Screening is made in view of certain criteria, such as national security and any adverse effect on 
Japanese economy.  
The following sectors could be subject to the screening, but a notification is as sessed on a case -
by-case basis:  
3. aircraft, weapons, nuclear power, aerospace, and related products (including the manufacture 
of dual -use and spin -on products),  
4. electricity, gas, heat supply, communications, broadcasting, water, railroads, passenger 
transp ort,  
5. biological chemicals, guard services ; and  
agriculture, forestry and fisheries, oil, leather and leather products manufacturing, air transport, 
and maritime transport.  
 
Question 3  
Are there any quantitative restrictions in Japan for foreign investme nts (i.e. in terms of 
establishment of juridical person in Japan, acquisition of juridical person, acquisition of shares)?  
 
RESPONSE  
There are cases that the share -holding of foreigners is restricted by individual business law  
p.26, para 2.22  
There are ten  national strategic special zones:  
• the Tokyo Zone as an international business and innovation hub, and a multicultural city, and for 
the exhibition of near -future technologies;  
• the Kansai Zone for innovation in medical care, and entrepreneurial support ; 
• the Niigata City Zone for agricultural reform in large -scale farming;  
• the Yabu City Zone for agricultural reform in hilly and mountainous areas;  
• the Fukuoka City and Kitakyushu City Zone for employment system reform to promote business 
creation, an d actions to address the declining and aging population;  
• the Okinawa Prefecture Zone for international tourism;  
• the Senboku City Zone for reform in agriculture and forestry, and for international exchange in 
the medical field;  
• the Sendai City Zone to  promote active social participation of women and start -ups; 
• the Aichi Prefecture Zone for general reform of education, employment, and agriculture, and for 
fostering industry leaders; and  
• the Hiroshima Prefecture and Imabari City Zone for internationa l exchange and the utilization of 
big data.  
 
Question 4  
Is it possible for a foreign investor to invest into any of these strategic zones? If not, could Japan 
please explain the reasons why? If any MA restrictions exist could Japan please elaborate on them  
as well?  
 
RESPONSE  
Although there are no investment procedures unique to the National Strategic Special Zones, some 
support services are provided to foreign investors. Firstly, the Tokyo One -Stop Business 
Establishment Center was established to promote fo reign-owned and domestic venture 
corporations; the Center offers comprehensive support for procedures related to corporate 
foundation. Secondly, the current requirements for the Investment/Business Manager visa 
category (namely, the need to either employ a t least two full -time employees or invest a minimum WT/TPR/M/351/Add.1  
 
- 148 - 
 
  amount of five million yen) can be relaxed in the Zones, provided that an agreement has been 
reached between the national government, local authorities, and the private sector.   
 
p.26, para 2.23  
The autho rities continue to aim to double investment by for eign companies in Japan (to 
¥35 trillion) by end -FY2020 under the revised Japan Revitalization Strategy of 2014, through 
several initiatives including: regulatory reform to improve the business climate; sup port measures 
for investment; enhancing National Strategic Special Zones; and improving the system for the 
resolution of labour disputes.  
 
Question 5  
Which support measures are implemented or will be implemented by the Government of Japan for 
foreign inves tment?  
 
RESPONSE  
The Government of Japan will disseminate information through approxim ately 50 FDI seminars 
during FY 2016 and promoted large -scale hub establishments in regional areas, with supplemental 
training for regional government officials and financ ial support for industry ac ademia collaboration 
in FY2016. Also the Government of Japan relaxed improved administrative procedures as seen in 
the case of the Tokyo One -Stop Business Establishment Center and improve the living 
environment for foreign nation als, through such measures as the increase of bilingual healthcare 
professionals and educational support  
 
Question 6  
How exactly is the Government of Japan planning to improve the system for the resolution of 
labour disputes? Please outline the exact impro vements envisioned. What categories of employees 
will be able to benefit from the newly introduced system? Will non -Japan citizens (i.e. ITCs) be 
able to use this system?  
 
RESPONSE  
In order to make it easier for global companies and others to accurately un derstand the 
employment rules in Japan, and to expand business without giving rise to labor -related disputes, 
the Government of Japan has set up Employment and Labor Advisory Centers in National Strategic 
Special Zones,  and is carrying out advanced consult ation with Employment Guidelines etc. that are 
based on analyses and categorization of judicial precedents concerning labor relations  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures affecting production and trade  
3.3.5 State trading, state -owned e nterprises, and privatization  
p. 56-57 Table 3.16  
Almost all imports of rice, wheat, and barley are carried out by MAFF. MAFF does conduct 
commercial export of rice, wheat, and barley. Most of the wheat and barley consumed in Japan is 
imported.  
 
Question 7  
Does the private sector have the right to import under TRQs for wheat and barley?  
 
RESPONSE  
Under the TRQs, MAFF imports wheat and barley as a state trading enterprise. The import systems 
under state trading also has a simultaneous buy and sell (SBS) syst em, in which a private importer 
and a private domestic user make a joint bid to MAFF, and can select the imported brands in 
advance.  
 
3.3.6 Standards and other technical requirements  
p. 60, para 3.125  
In March 2015, the Russian Federation raised concerns regarding Japan's Wood Use Points 
Programme (which ended in 2014); the issue was not raised further in subsequent meetings. 
Between 1995 and 1 June 2016, a total of 12 specific trade concerns were raised against measures 
maintained by Japan. At the same ti me, Japan has used the TBT Committee to raise 72 specific 
trade concerns in areas such as food labelling, electronic appliances, cosmetics, motor vehicles and 
steel products.  
 WT/TPR/M/351/Add.1  
 
- 149 - 
 
  Question 8  
The Russian Federation welcomes the fact that in June 2015 Japan has stopped Wood use points 
program (WUPP), which was adopted on 29 March 2013, entered into force on 1 April 2013, and 
was notified to the WTO Secretariat on 4 November 2014. As a result of the WUPP Russian wood 
and soft wood exports to Japan fell by 60%. The  Russian Federation would therefore highly 
appreciate receiving information regarding Japan 's plans to implement similar programs in the 
near future.  
 
RESPONSE  
According to the Japanese trade statistics, the average annual import value of wood products fro m 
the Russia n Federation  in 2013 -2014 increased by approximately 30%, from 38.4 billion yen in 
2012, right before the start of the WUPP, to 51.9 billion yen in 2013, and 49.4 billion yen in 2014, 
during the eligible period for the Wood Use Points Program ( 2013-2014).  
Japan is not planning any new programs similar to the Wood Use Points Program.  
 
3.3.7 Sanitary and phytosanitary measures  
p.63 para 3.142  
According to the authorities, SPS measures applied by Japan are based on the relevant 
international standa rds.(101)  
(101) Where such relevant international standards do not exist, SPS measures are based on 
scientific risk assessment, in accordance with the WTO SPS Agreement. Additionally, the 
authorities state that, regarding food safety issues, the Japanese F ood Safety Commission 
publishes the result of the risk assessments.  
 
Question 9  
Could Japan please provide the web -link where the risk -assessment results are available?  
 
RESPONSE  
The Food Safety Commission of Japan, FSCJ, publishes such results as risk as sessment reports on 
their website. The reports are available at: http://www.fsc.go.jp/hyouka/index.html . 
FSCJ translates an abstract of the reports into English, and publishes it at the English Website. The 
English translations are available at: 
http://www .fsc.go.jp/english/evaluationreports/evaluationreports_index_e1.html . 
 
 
p.65 para 3.149  
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 inspec tion 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 G overnment of Japan, through the government of 
the exporting country. As at March 2016, 4,021 foreign testing laboratories were registered in 
Japan under the Food Sanitation Act.  
 
Question 10  
Please clarify which other items, except microbiological objects and mycotoxins, are to be studied 
in order to import food to the territory of Japan?  
 
RESPONSE  
When food and related products are imported from abroad to Japan, an import notification that 
includes information such as food ingredients, processing method an d food additives must be 
submitted according to the Food Sanitation Act.  
After the import notification is submitted to a quarantine station, food sanitation inspectors carry 
out document examination of the import notification, to check whether the foods co mply with the 
Food Sanitation Act. When the inspectors judge it is necessary, an inspection must be conducted.  
Regarding testing items, microbiological objects and mycotoxins are not exempted from 
inspections at their entry to Japan, because they could pro liferate during transportation. The 
Government of Japan accepts the test report of other items that do not change durin g 
transportation (e.g.  pesticides and food additives), conducted by designated foreign testing 
institutions.  
However, food and related pr oducts that are highly possible to violate the Food Safety Act are 
inspected at their entry to Japan, called an 'inspection order '. And the items that are subject to an WT/TPR/M/351/Add.1  
 
- 150 - 
 
  inspection order must pass the inspection to be imported. For details of inspection ord er, please 
refer to the following URL;  
http://www.mhlw.go.jp/english/topics/importedfoods/16/schedule01.html . 
 
Question 11  
What are the requirements for the foreign testing laboratories to be registered in Japan under the 
Food Sanitation Act?  
 
RESPONSE  
The Ministry of Health, Labor and Welfare (MHLW)  accepts the results of inspections by inspection 
agencies that foreign governments recognize that they have certain control by foreign government 
agencies and that they have internationally valid inspection acc uracy.  
For the detailed procedure of registration to the MHLW 's list of Foreign Official Laboratories and the 
MHLW 's list of Foreign Official Laboratories, please refer to the following  URL. 
http://www.mhlw.go.jp/english/topics/importedfoods/dl/1 -10.pdf , 
http://www.mhlw.go.jp/english/topics/importedfoods/1 -10.html . 
 
3.3.10 Intellectual Property Rights  
3.3.10.1 Overview  
p.75 para 3.176, Table 3.31  
The substantive IP laws continue to provide protection to the main types of IPRs (Table 3.31).  
 
Question 12  
With regards to protection of trademarks Table 3.31 mentions that the acquisition or holding of a 
right to use a domain name on the Internet that is identical or similar to another person 's specific 
indication of goods or services pertaining to a person 's busi ness (e.g. a name, trade name, 
trademark, mark) is prohibited under unfair competition law. In its turn, if a domain name 
registered in the name of a third person is used as an element of a trademark, can such use 
constitute grounds for a refusal to regist er such trademark?  
 
RESPONSE  
Under the Japanese Trademark Act , there is no provision for refusing any application for 
trademark registration only because a trademark of an application contains or consists of the 
domain name that has been registered in the name of a third person . 
 
Question 13  
With regards to protection of industrial designs Table 3.31 indicates that the applicant may request 
that the design be kept secret for a certain period of time not exceeding three years. Please clarify 
at what stage of  registration and based on what grounds the applicant may file such request.  
 
RESPONSE  
According to Article 14 of the Design Act, an applicant for design registration who files a request 
that the design be kept secret for a certain period of time not excee ding three years shall submit 
the following documents to the Commissioner of the Patent Office, at the time of filing of the 
application for design registration or payment of registration fee for the first year under Article 
42(1) of the Design Act:   
(a) the name and domicile or residence of the applicant for design registration; and  
(b) the period for which secrecy is required.  
It is not required for an applicant who files the request to have any specific ground to do so.  
 
 
3.3.10.2 Patents  
p.78 para 3.1 79 
During the review period, Japan's patent regime was revised through different provisions of the 
Act on the Partial Revision of the Patent Act and Other Acts. Under the Act, an invention by an 
employee belongs to its employer, when the right becomes effe ctive, if any provision in any 
agreement, employment regulation or any other contract stipulates in advance that the right to 
obtain a patent for any invention made by the employee will be vested in the employer. The 
employee has the right to receive "reas onable remuneration or other economic profits", and the 
METI has defined guidelines for procedures to determine the details of "reasonable remuneration 
or other economic profits".  
 WT/TPR/M/351/Add.1  
 
- 151 - 
 
  Question 14  
Please explain how, in accordance with the new patent law, the amount of "reasonable 
remuneration" is calculated or "other economic profits" are evaluated that are due to the author of 
employee invention.  
 
RESPONSE  
The Patent Act provides in its Article 35.5 as follows;  
Article 35.5  
Where an agreement, employment regu lation or any other stipulation provides for the value 
provided in the preceding paragraph, the payment of value in accordance with the said 
provision(s) shall not be considered unreasonable in light of circumstances where a negotiation 
between the employe r, etc. and the employee, etc. had taken place in order to set standards for 
the determination of the said value, the set standards had been disclosed, the opinions of the 
employee, etc. on the calculation of the amount of the value had been received and a ny other 
relevant circumstances.  
The Government of Japan issued the guidelines regarding evaluation of such due process of 
establishing the provision of criteria between employer and employee. If there is no provision 
established between employer and emplo yees regarding criteria of "reasonable remuneration" or 
"other economic profits", or the application of the established provision is "unreasonable" (i.e. 
impermissible) from the perspective of due process between employer and employees etc., the 
court will  determine its reasonable amount by taking into consideration of amount of profit to be 
received by employer from invention, employer 's burden, contribution, and treatment of employee 
and any other circumstances relating to invention.  
 
p.79 para 3.184  
Parallel imports are allowed in Japan in accordance with the principle of "international exhaustion". 
Compulsory licences may be granted after at least three consecutive years if a patent is not 
worked, if it is thought to be necessary for the public welfare, or if the patent is needed to be 
worked for another patent and its owner is unwilling to allow its use. However, as of August 2016, 
Japan has never granted any compulsory licences.  
 
Question 15  
Apart from compulsory licensing, has the Government of Japan a uthority allowed the use of an 
invention, utility model or industrial design without the consent of the patent holder, if it is in the 
interest of national defense and security (government use)?  
 
RESPONSE  
No. The Government of Japan has never allowed such use without the consent of the right holder.  
 
3.3.10.5 Trademarks  
p.80 para 3.189  
In Japan, trademarks may include characters, figures, symbols, three -dimensional shapes and a 
combination thereof. Since April 2015, motion marks, hologram marks, colour per se marks, sound 
marks, and position marks can be registered as trademarks.  
 
Question 16  
The WTO Secretariat 's Report informs that starting from April 2015 motion marks, hologram 
marks, colour per se  marks, sound marks and position marks can be registered a s trademarks in 
Japan. Are there any specific guidelines available in English containing rules for examination of 
such marks? If yes, please provide links. Are there any actual cases of successful registration of 
such marks? If yes, please provide examples . 
 
RESPONSE  
The Japan Patent Office provides "Examination Guidelines for Trademarks" which contains rules for 
examination of non -traditional trademarks ( motion marks, hologram marks, color per se marks, 
sound marks and position marks) in English. Please re fer to the below link.  
http://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/tt1302 -002.htm . 
There are some actual cases of successful registrations of non -traditional trademarks (motion 
marks etc.). For example, the trademark consisting of a bud -formed mark which gr adually unfolds 
like a flower and finally changes in two ribbon -formed mark with a flower or "W" motifs is 
registered as a motion mark in Japan (Registration No. 5804316).  
 WT/TPR/M/351/Add.1  
 
- 152 - 
 
  Such examples of non -traditional trademarks registered in Japan are found in the se arching 
Japanese trademark database named "J -PlatPat." Please refer to the link below. To select one or 
more types of trademarks for searching, users can retrieve the information of trademark 
applications and registrations by type.  
https://www3.j -platpat.i npit.go.jp/cgi -bin/ET/TM_AREA_E.cgi?1487214748745 . 
 
3.3.10.6 Geographical indicators  
p.81 para 3.192  
Under the new system, in order to protect a geographical indication, a producers group may file an 
application, which includes product specification of the  geographical indication and quality control 
plan, to the Ministry of Agriculture, Forestry and Fisheries. The Minister of Agriculture, Forestry 
and Fisheries must make a public notice of the application for three months for possible 
opposition.  
 
Question 17 
The WTO Secretariat 's Report provides that under the new law protecting geographical indications 
an application for registration of a geographical indication can be filed by a producers group that 
must establish quality standards, as well as a quality c ontrol plan. Does the new law provide for a 
possibility for producers, other than those being part of the initial group of applicants, to acquire 
the right to use the geographical indication in question provided that the quality standards are 
observed and the production is located in the respective geographical area?  
 
RESPONSE  
Producers other than those being part of the registered producers ' group, can use the GI in 
question provided that they join in the registered producers group. The registered producer s' 
group is prohibited to reject producers satisfying eligibility requirements from joining in the group. 
In addition, producers not being part of the registered producers ' group can form another 
producers ' group and can apply for registration to be anothe r registered producers group to use 
the same GI. In order to be registered, the applicant group must satisfy the original quality 
standards and other requirements of prior registered producers group.  
 
3.3.10.7 Copyright  
 
Question 18  
The respective sub -section does not mention databases as objects of copyright. Does Japanese 
copyright law extend copyright or related rights protection on databases? If yes, how are 
databases legally protected (criteria of granting legal protection, duration of legal protection )? Is it 
compulsory to register databases? If yes, which executive body is responsible for registration?  
 
RESPONSE  
Japanese Copyright Act provides protection for databases as an object for copyright provided that 
the database constitutes a creation by reas on of the selection or systematic construction of 
information contained therein (Article 12 bis (1)). The term of protection for databases is, in 
general, 50 years after the death of the author. Registrations of databases are not required to 
obtain such pr otection.  
 
p.83 para 3.199  
The Agency for Cultural Affairs, a government office, is responsible for copyright  
registration, except for computer programs, whose registration is conducted by the Software 
Information Center.  
 
Question 19  
How are computer prog rams legally protected? What are the criteria for granting legal protection 
to computer programs? What is the duration of legal protection of computer programs?  
 
RESPONSE  
Computer programs are protected by copyright, provided that they meet a general requi rement of 
creativity. However, protection does not extend to the programming language, coding conventions 
or algorithms used to create the works of computer programs. The term of protection for computer 
programs is, in general, 50 years after the death of the author. Registrations of computer 
programs are not required to obtain such protection.  
 WT/TPR/M/351/Add.1  
 
- 153 - 
 
  3.3.10.9 International cooperation and Harmonization  
p.85 para 3.210  
Japan is a signatory to several bilateral and multilateral frameworks on IP issues. It has sign ed the 
main international treaties and agreements, including some of those administered by the World 
Intellectual Property Organization (WIPO). Most of Japan's RTAs 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.  
 
Question 20  
Please provide more details on the provisions of Japan 's RTAs on IP. Do these provisions suggest a 
higher level of harmonization of IP systems and stronger standards for IP prote ction as compared 
to WTO?  
 
RESPONSE  
Japan has so far signed 16 EPA/FTAs ("EPAs") with 20 countries. All these EPAs embrace the 
provisions concerning intellectual property, except the ASEAN -Japan Comprehensive Economic 
Partnership Agreement. The IP related provisions of these EPAs deal with three major areas as 
specified below:  
 
(a) Streamlining in procedural aspect and promoting transparency  
In order to diminish the procedural burden for patent applicants and facilitate acquisition of IPRs, 
these EPAs stipu late, for instance, that notarization shall not be required for a translation of 
applications claiming priority, and/or simplify certification procedures thereof. To promote 
transparency, for instance, there are EPAs providing that information on applicati ons, grants and 
registrations of IPRs, and also information contained in dossiers thereof is to be made publicly 
available.  
 
(b) Reinforcement of IP protection  
To reinforce the protection of IPRs, Japan 's EPAs provide for, for instance, the acceleration o f 
patent examination, and a system in which an applicant obtains a patent in the other Party by 
submitting thereto the examination result of the Japan Patent Office on the corresponding patent 
application. Further, the protection of trademark well -known in  foreign countries and clear 
prohibition of copy of product appearance (dead -copy) are also stipulated.  
 
(c) Enhancement of IPR enforcement  
To enhance the enforcement of IPRs, Japan 's EPAs expand, for instance, subject IPRs for border 
measures and crimina l remedies with regard to Articles 51 and 61 of the TRIPS Agreement. Also, 
our EPAs provide for compulsory notification of relevant information acquired by the customs to 
right holders with regard to Article 57 of the TRIPS Agreement.  
 
 
3.3.10.10 The IP 2 015 Strategic Programmes  
p.86 para 3.213  
The 2015 Strategic Programme identifies, inter alia, three pillars to develop high technology in 
Japan and enrich the IP culture among businesses: (i) promotion of local utilization of intellectual 
property; (ii) ac tivation of the intellectual property dispute resolution system; and (iii) overseas 
expansion of content (such as manga, animation, and dramas) and their peripheral industries.  
 
p.86 para 3.216  
Japan has a vast content industry. It includes mainly anime/ma nga, movies, music, games, and 
broadcast programmes. However its related exports remained limited. The strategic programme 
seeks to tap the potential of the industry, through various export promotion measures.  
 
Question 21  
Please provide details on the par ticular mechanisms suggested within the IP 2015 Strategic 
Programmes with regards to the development of high technology (paragraph 3.213) and 
promotion of SMEs ' use of IP (paragraph 3.213), as well as export promotion measures (paragraph 
3.216). If the sai d mechanisms and measures suggest any preferences offered to local businesses, 
please explain how they comply with WTO requirements.  
 
 
 WT/TPR/M/351/Add.1  
 
- 154 - 
 
  RESPONSE  
Please refer to the sub -items 1)Enhancing SMEs' intellectual property strategies, and 2) 
Strengthening intellec tual property collaboration between local SMEs and large 
enterprises/universities, under the item (2) "Measures to be taken in the future" in the Part 1 of 
the "IP Strategic Program 2015" (pages 12 –17). Please see the below link of IP Strategic Program 
2015. http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku2015_e.pdf . 
These measures which are to encourage SMEs to utilize intellectual property and to improve 
technology would eventually lead to their good performance in trade. They do not violate  WTO 
agreements, for instance, by giving them tax preference or limiting import from foreign countries.  
 
4 TRADE POLICIES IN SELECTED SECTORS  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.1 Legal and institutional framework  
p.91, para 4.9  
The current P lan, adopted in March 2015, sets out the objectives of doubling incomes in 
agriculture and rural areas over the next ten years by increasing domestic and export demand, 
improving value chains, reducing costs, promoting structural reform, and improving prod uctivity.  
 
Question 22  
Could Japan describe the basic instruments of the Plan aimed at improving value chains and 
reducing costs?  
 
RESPONSE  
The Government of Japan revised "Japan Revitalization Strategy" in June 2016. Please see the 
links below. Implements  of improving value chains and reducing costs are described in pages 37 -
39 and pages 31 -37. 
Japan Revitalization Strategy in the website "Abenomics is progressing"  
http://www.japan.go.jp/abenomics/index.html . 
 
 
p.91-92 para 4.12  
Programmes to encourage pro duction limitation apply to rice. These programmes 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, fruits, veget ables and some other products which 
partially or fully compensate for differences between sales and target prices or historical average 
prices. According to the authorities, the price stabilization policy on pork is not implemented at 
present. In addition,  the Government subsidizes the Agricultural Insurance Scheme and provides 
reinsurance to local insurance funds.  
 
Question 23  
Could Japan please provide a web -link where the list of the programmes is available?  
 
RESPONSE  
The list of the agriculture policy p rograms by the Ministry of Agriculture, Forestry, and Fisheries 
are available in the following websites here:  
FY2015 : http://www.maff.go.jp/j/budget/2015/kettei.html , 
FY2016 : http://www.maff.go.jp/j/budget/2016/kettei.html . 
 
4.1.2.2 Trade policies  
p.92, pa ra 4.17  
Under all methods, the applicant for an allocation must meet criteria such as end -use 
requirements, a record as an importer, planned usage, etc.  
 
Question 24  
Could Japan please provide a web -link which contains information on importers that were al located 
a share of TRQs?  
 
 WT/TPR/M/351/Add.1  
 
- 155 - 
 
  RESPONSE  
Please refer to the following URL:  
(http://www.maff.go.jp/j/kokusai/boueki/triff/t_kanwari/04/index.html )  
(only Japanese)  
 
p.92, para 4.18  
Under the simultaneous buy and sell (SBS) systems for rice and wheat, an importe r and a 
domestic user make a joint bid to MAFF specifying the government purchase price from the 
importer and government sale price on the domestic Japanese market. MAFF collects the 
difference in the prices (Table 4.6).  
 
Question 25  
Could Japan please des cribe the procedure of importation under TRQ for wheat?  
 
RESPONSE  
Wheat import under the TRQs is operated by MAFF as a state trading enterprise, to stabilize price, 
supply and demand. MAFF imports and sells wheat based on requests from milling companies. 
Even more, the import systems under state trading also has a simultaneous buy and sell (SBS) 
system, in which an importer and a domestic user make a joint bid to MAFF, and can select the 
imported brands in advance  
 
Question 26  
According to the notification of Japan (G/STR/N/16/JPN), resale prices of imported products are 
determined on the basis of such factors as import prices, management costs and other economic 
conditions. Could Japan please explain the correlation between simultaneous buy and sell 
system/ ordinary import system for wheat and determination of resale prices for wheat?  
 
RESPONSE  
The Government's selling price of imported wheat is determined by adding a mark -up to the 
import price. The import systems under state trading also have a simultaneous  buy and sell (SBS) 
system in which an importer and a domestic user make a joint bid to MAFF, and can select the 
imported brands in advance. Please find the following URL regarding the import and selling system 
of wheat and the way of determining the sales  price:  
http://www.maff.go.jp/j/soushoku/boueki/mugi_zyukyuu/pdf/sankou.pdf  (only Japanese)  
 
4.2 Fisheries  
4.2.2 Policy  
p.99-100, para 4.52  
Import quotas apply to several other species, including herring, cod, mackerel, sardines, and 
saury. According to th e authorities, these measures complement its management of coastal 
fisheries resources, including total allowable catches (TACs) which apply to some of these species.  
 
Question 27  
Could Japan provide the reasons for introducing import quotas on certain fis h species?  
 
RESPONSE  
Quantitative import restrictions (import quotas) play an important role in the conservation and 
management of fishery resources in waters adjacent to Japan. This system is consistent with the 
1994 GATT (Articles Ⅺ2(c) and article ⅩⅩ(g)), and was notified to the WTO. The Government of 
Japan will continue to implement this system in an appropriate manner  
 
Question 28  
Could Japan provide quantities that are allowed for import under quotas?  
 
RESPONSE  
Please refer to the following table.  
 
quota unit amount of import quota 
announced in 2015  
Cod MT 72,700  
Walleye pollack  MT 1,027,000  
Roes of cod  MT 98,326  WT/TPR/M/351/Add.1  
 
- 156 - 
 
  quota unit amount of import quota 
announced in 2015  
Horsemackerel  MT 125,000  
Mackerel  MT 227,000  
Pacific / Atlantic herring  MT 92,000 / 65,000  
Sardine  MT 50,800  
Cuttle -fish and squid  
(excluding "Mongo ika")  MT 74,950  
Dried squid  MT 4,500  
Scallops  MT 5,720  
Dried green laver /  
 Monostroma nitidum  MT 130 
Kelp and its food preparations  MT 3,560  
Yellow tail / Saury / Adductors of shell -fish / Niboshi 
(small boiled and dried fish for se asoning), etc.  thousand 
US$ 71,400  
Laver and its food preparations  million 
sheet  1,985  
 
Question 29  
Could Japan please explain whether these import quotas are autonomous tariff quotas?  
 
RESPONSE  
Japan does not apply any tariff quotas on fish and fish pr oducts.  
 
Question 30  
Does the government prohibit import that exceeds quotas ' quantities?  
 
RESPONSE  
Imports that exceed quantitative annual import quotas are not approved.  
 
4.3 Support for fisheries  
p. 101, Table 4.10 Government transfers to fishing, 2007 -13 
 
Question 31  
Could Japan elaborate what kinds of subsidies are provided under "General services" and "Cost -
reducing transfers"?  
 
RESPONSE  
"Cost-reducing transfers" include such subsidies as interest subsidies and compensation for the 
increase in the fue l price above the average during the past several years. "General services" 
include other budgets for various programs, including fisheries related infrastructure, management 
of fishing resources, and research and development.  
 
4.6 Services  
4.6.1 Financial  services  
p.108, para 4.81  
Regarding banking, the 1947 Banking Act and its subordinated legislation were amended in June 
2013, with entry into force of the amendments in April 2014. Some of the amendments deal with 
the regime applicable to domestic banks o r to all banks, while others are specific to foreign banks.  
 
p.108 -109, para 4.85  
The amendment to the Banking Act concerning the regime of foreign banks includes partial 
relaxation of requirements in respect of agency services and intermediary services in  that when a 
Japanese bank conducts business as an agent or intermediary of a foreign bank only outside of 
Japan, capital ties are no longer required between the agent or intermediary bank in Japan and the 
foreign bank.  
 
Question 32  
With regards to paragra phs 4.81 and 4.85 please specify what exact amendments ("relaxations") 
to 1947 Banking Act are affecting foreign banks?  
 WT/TPR/M/351/Add.1  
 
- 157 - 
 
  RESPONSE  
Partial relaxation of the requirements described in paragraph 4.85 is envisaged by amendment of 
Article 13 -2 (Agency or Interm ediary Foreign Bank Services) of the Ordinance for Enforcement of 
the Banking Act which will be enforced, when a Japanese bank conducts business as an agent or 
intermediary of a foreign bank outside of Japan  
 
p.109, para 4.86  
The amendment also involves a series of new and stricter rules regarding licensing standards, 
information obligations, maintenance of assets in Japan and supervisory powers in case of 
bankruptcy or reorganization proceedings.  
 
Question 33  
Please elaborate on the "new and stricter rules  regarding licensing standards, information 
obligations, maintenance of assets in Japan and supervisory powers in case of bankruptcy or 
reorganization proceedings".  
 
RESPONSE  
Please refer to paragraphs 4.87 and 4.88 for licensing standards, paragraph 4.89 for information 
provision obligations, paragraph 4.90 for maintenance of assets in Japan, and paragraph 4.91 for 
supervisory powers in the case of bankruptcy or reorganization proceedings  
 
Question 34  
Please elaborate on the mentioned licensing standards. What kinds of activities are subject to 
licensing in Japan?  
 
RESPONSE  
Please refer to paragraph 4.87 and 4.88 for the licensing standards. It is prescribed in the Banking 
Act that licensing is needed to operate a banking business. Banking business means a business 
that performs any of the following acts (Article 2(2)):  
(i) Both acceptance of deposits or installment savings, and loans of funds, or discounting of bills 
and notes; or  
(ii) Conducting of exchange transactions  
 
Question 35  
Are there any differenc es in the procedures for foreign persons and Japanese nationals in terms of 
obtaining licenses for any kind of activities?  
 
RESPONSE  
The licensing standards are prescribed in the Banking Act (Article 4(2)) and the Ordinance for 
Enforcement of the Banking A ct (Article 1 -8(3)), which are applied equally to foreign persons and 
Japanese nationals. Moreover, the Comprehensive Guidelines for Supervision of Major Banks 
through which the Financial Services Agency evaluates application for banking license do not 
provide any difference with respect to nationality in the licensing process. For reference, when a 
person plans to conduct Banking Business in a foreign state, in accordance with the laws and 
regulations of the foreign statem applies for banking license in Ja pan, the provisions of the 
Banking Act (Article 4(3)) will apply in addition to the provisions above  
 
4.6.2 Telecommunications  
 
Question 36  
Could Japan please explain whether it is possible for a foreign telecom service supplier to enter 
Japanese market? What licenses such foreign provider shall obtain? Do any MA or NT restrictions 
for foreign service suppliers exist?  
 
RESPONSE  
It is possible for foreign telecom service suppliers to enter Japanese market. The service supplier 
prescribed in Section 4 of Art icle 2 of the Telecommunication Business Act is required, when it 
starts to run its business, to get the registration in accordance with Article 9 of the Act, or to 
submit the notice in accordance with Section 1 of Article 16 of the Act. For entering Japan ese 
market, there is no restriction on market access and national treatment (except NTT).  WT/TPR/M/351/Add.1  
 
- 158 - 
 
  ADDITIONAL REPLIES  - RUSSIAN FEDERATION  
Q1. Could Japan please provide additional information on NEXI trade and investment insurance 
programs?  
 
RESPONSE  
NEXI mainly has three types of programs. (i) Export Credit Insurance, (ii) Investment Insurance, 
and (iii) Loan Insurance. Detailed information of NEXI 's products is available on NEXI 's brochure.  
URL: http://www.nexi.go.jp/corporate/booklet/pdf/nexi -2015_e.pdf  
 
RESPO NSE 
The Government of Japan provides R&D -related tax system in order to support businesses for 
increasing R&D investments. （Reference: paragraph 3.84 of the Report ） 
In FY2017 Tax Reform with respect to the Revision of the R&D -related tax systems, the total 
expenditure -based tax credi t system is revised to a system under which the tax credit rate (6 -14% 
in principle; 12 -17% for SMEs) will be set in proportion to changes in R&D expenditure.  
In addition to above, The Government of Japan revises the scope of eligible expenditure items by  
adding expenses related to the development of "fourth industrial revolution "-type services.  
 
Q2. Please, provide detailed information regarding the set of economic measures that are going to 
be implemented as part of the Government's development program? How do you expect to 
facilitate the increase of exports of farm products? What are the conditions on which the export 
support is going to provided?  
 
RESPONSE  
Please check the URL below to see the set of economic measures mentioned above.  
http://www5.cao.go .jp/keizai1/keizaitaisaku/2016/20160802_economic_measures.pdf  
 
RESPONSE  
The Government of Japan aims to accomplish its national goal of export value which aims 1 trillion 
yen by 2019. To accomplish this goal, The Government of Japan established "the Plan f or 
Empowering Export on Agriculture, Forestry and Fisheries " in May 2016. In this plan, it states that 
the Japan External Trade Organization (JETRO), the official agency responsible for promoting 
exports, is the main implementation body of mentioned measur es, such as overseas market 
research, holding Japan booth at major international trade exhibitions, providing business meeting 
opportunities with overseas buyers, and offering training seminars according to the level of trade 
experiences. MAFF has made fin ancial support for JETRO 's promotion activities as well as 
coordinated its promotion plans.  
 
Q3: In December 2016 Japan ratified the Trans -Pacific Partnership Agreement, which has was also 
joined by 11 more countries, including the USA. Has the Japanese Go vernment started to 
harmonize its legislation in order to comply with the TPP agreement or has it already taken any 
specific steps to implement the provisions of this Agreement? Can we expect any bilateral trade 
agreements between Japan and the other membe rs of the TPP agreement in the short term? 
Please specify whether Japan plans to change its stance towards the TPP Agreement given Mr. 
Trump's recent decision to scrap the TPP?  
 
RESPONSE  
The TPP Agreement is intended to establish new common rules for the 2 1st century in the Asia -
Pacific region and form a huge free and fair economic zone. It also seeks to deepen and broaden 
economic ties among countries and regions that share fundamental values such as freedom, 
democracy, basic human rights, and the rule of law, and is hence strategically significant in terms 
of pursuing further regional stability.   In light of the significance of the TPP, The Government of 
Japan notified the Depositary of the completion of Japan 's domestic procedures for the TPP. The 
Governm ent of Japan has already completed its necessary legislative and administrative 
procedures and most of those measures will come into force on the date of entry into force of the 
TPP Agreement. The Government of Japan intends to continue to closely consult with other original 
signatories on the future of the TPP and tenaciously encourage them to promptly complete their 
domestic procedures toward the entry into force of the TPP Agreement.  
 WT/TPR/M/351/Add.1  
 
- 159 - 
 
  2.4 Investment Regime  
p. 26-27 para 2.25  
On 17 March 2015, the Counci l adopted the "Five Promises for Attracting Foreign Businesses to 
Japan" as a guideline for relevant ministries and agencies for the implementation of measures 
aimed at improving the investment environment in Japan.9 The authorities state that Japan 
contin ues to: conduct activities focused on identifying and attracting investment projects; carry 
out institutional reforms; and implement additional measures, such as regulatory reforms that 
contribute to the improvement of the investment environment and suppor t measures aimed to 
expand investment, taking foreign companies' needs into consideration.  
 
Q4. To what extent have the measures aimed at improving the investment environment already 
been implemented by the Government of Japan? What exact measures have alr eady been 
implemented in order to attract additional foreign capital to the economy? Are there any plans to 
change the conditions of industrial siting in Japan?  
 
RESPONSE  
Based on the contents and schedule in "Five Promises for Attracting Foreign Businesse s to Japan ", 
Japanese Government has been implementing measures to overcome language barriers, facilitate 
better internet connectivity, accommodate business jets at local airports, enhance educational 
environment for expatriate children, and strengthen ser vices to support foreign enterprises. 
Relevant information is available at:  
http://www.invest -japan.go.jp/promotion/promise_en.pdf  
Also, the Government of Japan is progressing a comprehensive economic policy package to 
sustainably revive the Japanese econo my. This program is "Japan Revitalization Strategy ". 
Relevant information is available at:  
http://www.kantei.go.jp/jp/singi/keizaisaisei/pdf/2016_zentaihombun_en.pdf  
 
Q5. Are there any declarations that need to be specifically requested from exporters (and  other 
counterparties) for the purpose of export contract's financing/insurance? If any of such exist, 
please specify what additional information do they enclose? What other measures are undertaken 
under OECD anti -bribery convention?  
 
RESPONSE  
Japan Custom s does not request a declaration from exporters or from any other entities for the 
purpose of export contract's financing/insurance. There is no customs measure taken in 
accordance with the OECD Convention on Combating Bribery of Foreign Public Officials.  
 
Q10. How does the risk assessment system work and what characteristics influence country's 
listing as exempted? Does such preferences (regarding list of countries where the export license is 
not required) comply with international regulations concerning n on-discriminatory basis of export 
activities? Does METI or relevant ECAs check the certificate of origin in terms of goods or services 
being of Japanese origin?  
 
RESPONSE  
In determining whether the issuance of an export license is approved, METI conducts t he risk 
assessment on each application for dual -use items, on a case -by-case basis, based on the four 
pillars of examination below:  
(1)Whether the items will be actually delivered to the end user;  
(2)Whether the items will be actually used by the stated en d user;  
(3)Whether the items will not be used for the purposes of impeding the maintenance of 
international peace and security; and  
(4) Whether the end user will appropriately control the items.  
 
Japan enforces two types of control.  
(1)List control  
(2)Ca tch-all control  
The former is based on export control regimes (NSG, AG, MTCR and WA). This control is not for 
particular countries but for all countries. The latter requires exporters to obtain a license 
concerning WMD or conventional arm. This control is  except for the countries which implement 
comprehensive export control systems.  
The countries which implement comprehensive export control systems are basically chose out of 
the countries which setting at least the three following conditions.  WT/TPR/M/351/Add.1  
 
- 160 - 
 
  (1)The countr y joins treaty on the non -proliferation of weapons of mass destruction (NPT, CWC 
and BWC).  
(2)The country joins all export control regimes. (NSG, AG, MTCR and WA)  
(3)The country has set catch -all control or similar one 's export control system.  
Generally, national security including security control export is exempted from the international 
regulations concerning non -discriminatory basis of export activities.  
 
METI, in charge of Export Control, or relevant ECAs does not check the certification of origin in  
terms of goods or services which originates in Japan on Security Export Control.  
 
Q7. Please specify which risks are meant by trade risks according to NEXI internal procedures? 
Which products cover those risks?  
 
RESPONSE  
There are 2 types of risks which w e consider as trade risks. Detailed information ((i) Political Risk 
and (ii) Commercial Risk) is explained in our brochure. (page 3) The products provided by NEXI 
are covering those two risks.  
URL：http://www.nexi.go.jp/corporate/booklet/pdf/nexi -2015_e.pdf   
 
Q8. Please, explain substantial growth of claims paid in 2015 and surge in reinsurance activity in 
(and corresponding slowdown in 2015)?  
 
RESPONSE  
Most of claims paid in the year 2015 were related to the political risk event of Venezuela. Please 
see FY2 015 Annual Report: http://nexi.go.jp/en/publications.html （page10）. 
In FY2014, NEXI has underwritten a large project which NEXI provided co -financing support with a 
foreign ECA, thereby the underwritten amount marked higher compare to FY2015.  
 
Q9. Please sp ecify on what terms such governmental support is provided? (Information stated in 
the Report needs to be updated, the latest report dated 2013).  
 
RESPONSE  
Government of Japan 's funding from FILP and FEFSA is provided on the market -based rate. 
Regarding gua rantee, Government of Japan offers a full guarantee on JBIC's foreign bonds.  
Q10. Since 2005 there has been a ban on imports of poultry from Russia. In 2005 it was imposed 
by Japan due to the occurrence of avian flu outbreaks in Russia; the outbreaks of av ian flu in the 
Russia n Federation  have been infrequent since then, but the poultry import ban has not been lifted 
and remains active. During this period Japan has imposed poultry import ban on other countries as 
well for identical reason as on the Russia n Federation , but eventually those bans were lifted (e.g a 
ban on imports of live poultry and poultry meat from the United States and Canada following an 
outbreak of bird flu has been suspended in 2015). Please elaborate why the ban on Russian 
poultry has no t been lifted for the periods of absence of any flu outbreaks and specify the 
procedures and conditions under which Russian poultry production can enter the Japanese market.  
 
RESPONSE  
The Government of Japan conducts a risk assessment prior to approval of poultry products import 
based on "Standard Procedure for Approval for Import of Designated Items into Japan to be 
Quarantined " and "Standard Operating Procedures for Approval for Import of Designated Items 
into Japan to be quarantined (SOP) " in compliance  with the OIE code. Upon agreement between a 
potential exporting country and Japan on "Animal health requirements for poultry products to be 
exported to Japan " which is established based on the results of a risk assessment, the country is 
eligible to expor t poultry products to Japan. (Japan imports poultry products from the United 
States and Canada with which Japan has already established animal health requirements for 
poultry products).  
Please note that "Animal health requirements for poultry meats from the Russia n Federation  to 
Japan " has not yet established and Japanese animal health authorities are currently conducting a 
risk assessment for them while continuously communicating with the Federal Service for 
Veterinary and Phytosanitary Surveillance of Rus sia. 
 
Question 11: How do the provisions of the Agricultural Co -operatives Act in part of exemptions 
from competition for individual farmers affect the country 's food market and meet Japans ' 
commitments in the WTO?  WT/TPR/M/351/Add.1  
 
- 161 - 
 
  RESPONSE  
While Article 22 of Antimonopoly  Act stipulates that cooperatives of small -scale businesses are 
generally exempted from applications of the Act, Article 8 of Agricultural Cooperative Act stipulates 
that agricultural cooperatives are regarded as organizations fulfilling the requirements o f Article 22 
(1) and (3) of Antimonopoly Act. It follows that agricultural cooperatives are also exempted from 
applications of Antimonopoly Act.  
In substance agricultural cooperatives are presumed to be cooperative organizations which aim at 
mutual aides among small -scale farmers, and accordingly Article 8 of Agricultural Cooperatives Act 
just confirms Article 22 is applicable to agricultural cooperatives. Therefore, this article, Article 8 of 
Agricultural Cooperative Act, is expected to have no influence on a food market in Japan.  
In addition, since Japan 's WTO commitments are related to international trades in agricultural 
products, there is no contradiction between Japan 's commitments and agricultural cooperatives ' 
exemption from Antimonopoly Act.  
 
Q12. Is there a connection between the program for converting production to more valuable fruits 
and vegetables and the strategy to increase exports of agricultural, forestry and fisheries products 
and food?  
 
RESPONSE  
There is no connection between the program and the strategy.  
 
Q13. Can you please explain how excise duties imposed on foreign brands of Japan Tobacco differ 
from excise duties imposed on national brands of Japan Tobacco (e.g. are the former higher than 
the latter?)? In what extent do these duties comply with the provisions of Article 3 of the 
GATT/WTO Agreement (National Treatment on Internal Taxation and Regulation)?  
Please, provide us with the information on excise duties rates imposed on alcohol production in 
Japan? Are there any differences bet ween excise duties rates imposed on imported alcohol and 
rates imposed on domestically -produced alcohol?  
 
RESPONSE  
(the answer for the question about tobacco tax)  
A preferential tax rate for tobacco has been applied only to six brands owned by Japan Tobacc o. 
These brands had been sold at lower price as "third class cigarette " under the fiscal monopoly on 
tobacco abolished in 1985, and low -income earners, especially elderly persons, were more likely to 
smoke these cigarettes. Considering such situation, tax rate for former third class cigarettes was 
set lower than the rate for other cigarettes as a temporary measure when tobacco tax was 
introduced instead of monopoly profits.  
 
In order to ensure compliance with the provisions concerning "national treatment ", the preferential 
tax treatment for former third class cigarettes is phased out from April 2016 as part of "FY2015 
Tax Reform ". The detail of implementation is as below.  WT/TPR/M/351/Add.1  
 
- 162 - 
 
  
　（Note）The above rate is a total tax rate of tobacco tax, supecial tobacco tax, prefectural tobacco tax and municipal tobacco tax.6,812yen/1,000pcs7,812yen/1,000pcs9,312yen/1,000pcs12,244yen /1,000pcs
4,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,000
27 28 29 30 31 32Difference
6,432yen/1,000pcs
（128.64yen/pack ）Other cigarettes
Former third class cigarettes（Yen/1,000pcs ）
Phasing out the Preferential Tax Treatment for Former Third Class Cigarettes
+1,000yen/1,000pcs （20yen/pack ）12,244yen/1,000pcs
（244.88yen/pack ）
5,812yen/1,000pcs
（116.24yen/pack ）
2015.4.1 2016.4.1 2017.4.1 2018.4.1 2019.4.1+1,500yen/1,000pcs （30yen/pack ）+2,932yen/1,000pcs
（58.64yen/pack ）
+1,000yen/1,000pcs （20yen/pack ） 
 
(the answer for the question about liquor tax)  
 
The Liquor Tax Act classifies alcoh olic beverages into several categories based on their basic 
ingredients (grain, fruits, etc.), manufacturing process (brewed, distilled, mixed, etc.) and 
characteristics (effervescence, alcohol percentage, etc.). It also stipulates respective tax rates for  
each of those categories, taking into account various factors, including how items in each category 
are produced or consumed. No matter whether they are domestic or imported products, the tax 
rates of Table 3.13, TRADE POLICY REVIEW 2015 Secretariat repor t are applied. (The rates are as 
of January 1 2017 ). (https://www.wto.org/english/tratop_e/tpr_e/tp410_e.htm  ) 
 
Q14. Are the measures concerning price regulations in the domestic market for cattle meat, pork, 
as well as the support system for producers aga inst price fluctuations in the market for milk and 
dairy products in compliance with Japans ' commitments in the WTO?  
 
RESPONSE  
These measures are in accordance with Japan 's commitments made under the WTO .   
 
Q15. In 2016, various sources were mentioning th at the Japanese government was planning to 
increase imports of farm products and attract foreign farmers. Therefore, we would like to receive 
additional information regarding measures that have been already taken (or planned to be 
implemented) to attract f oreign farmers, what exact conditions does the Japanese Government 
plan to provide exporters with and in which agricultural sectors farmers are going to be involved 
exactly.  
Additionally, there have been rumors that the Japanese State intends to subsidize farmers so that 
they can acquire expensive food safety certificates – this should help Japan to secure the 
necessary level of food stock on the eve of the 2020 Summer Olympic Games. Can the 
abovementioned fact affect the liberalization of Japanese agricult ural tariff quotas in the long 
term?  
 
RESPONSE  
Along with the program on National Special Strategic Zones, the Government of Japan is 
considering introducing the scheme that enables employment of foreign professionals with skills 
and experience in agricult ural sector under appropriate administration. Including the source WT/TPR/M/351/Add.1  
 
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  provided, no information of "planning to increase imports of farm products " and the relationship 
with "exporters " is available.  
The certificates mentioned in the source Russian Federation i ndicated have no relation with the 
agricultural tariff quotas.  
 
Question 16: Could Japan please clarify which requirements are applied to plywood? Are these 
requirements (especially with regards to formaldehyde content) the same for products imported to 
Japan and products of local origin? What legislation regulates such requirements? Does this 
legislation require the use of certain adhesives in the production of plywood?  
 
RESPONSE  
According to the Building Standard Law, the amount of plywood used for interi or finishing 
materials in habitable rooms is limited depending on the amount of formaldehyde emission rate 
(F☆☆☆☆ 、F☆☆☆、F☆☆ under JAS etc.) *.  
This requirement is the same for products imported to Japan and products of local origin.  
Although it is not nece ssary to use a specific adhesive for the manufacture of plywood, it will be 
restricted depending on the amount of formaldehyde emission rate from the whole plywood.  
 
*Reference ：Formaldehyde emission rate  
・F☆☆☆☆ ：Up to 0.005mg/m2h  
・F☆☆☆ ：Over 0.005mg/m2h but  not more than 0.02mg/m2h  
・F☆☆  ：Over 0.02mg/m2h but not more than 0.12mg/m2h  
 
 
16. NORWAY  
Export financing  
 
1. The Japanese export support and promotion system described in the Secretariat 's report 
WTR/TPR/S/351, chapter 3.2.4. Table 3.5 (p. 45) shows the  insurance activity of Japan 's Nippon 
Export and Investment Insurance (NEXI), including premium income, claims paid and underwritten 
amount across different product groups. Table 3.6 in the same chapter shows lending and 
investment from Japan Bank for Inte rnational Cooperation (JBIC), including guarantees. We 
recognize that NEXI is an insurance provider, whilst JBIC is a direct lender.  
 
For our understanding of the Japanese export support and promotion system, we would appreciate 
a table for JBIC similar t o NEXI's table 3.5 that shows premium income, claims paid and 
underwritten amount across different product groups.  
 
RESPONSE  
As JBIC is not an export insurance organization, it does not have a table similar to NEXI's table 3.5 
that shows premium income an d claims paid. JBIC 's underwritten amount of respective lending 
and investments are shown in table 3.6.  
 
Maritime  
 
2. Table 3.12 (p. 51) in the Secretariat's report, states that Japan maintains its maritime antitrust 
exemption under the Marine Transportati on Act.  
 With the last review conducted in 2015, are there plans for a new review in the near future?  
 What is the rationale behind the decision to uphold the exemption? It would also be 
interesting to learn more about the extent of notifications filed und er this scheme  over the past 
couple of years.  
 
RESPONSE  
A. There is no concrete plan for the next review at present.  However, as for shipping 
conferences*, when The Government of Japan considers there is no adverse effect upon the 
provision of stable internat ional shipping services to Japan, after examining the effectiveness 
of each shipping conference in place, The Government of Japan will review the current 
exemption for shipping conferences in the direction of abolition.   
As for shipping agreements other th an shipping conferences, The Government of Japan will 
review them, if necessary, having internal consultation process with the Japan Fair Trade WT/TPR/M/351/Add.1  
 
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  Commission, after studying the policy positions towards the exemptions from competition 
laws in other countries and the effect on the interests of the Japanese shippers, etc.  
*Shipping conferences: Shipping agreements that set binding common tariffs or charges for 
its member shipping companies  
B. The Government of Japan has concluded it will maintain the current exempt ion for the time 
being,  after studying the policy positions towards the exemptions from competition laws in 
other countries, the effect on the interests of Japanese shippers, and the impact on the 
Japanese economy, etc. The Government of Japan will review the exemption, as necessary, 
following the above mentioned position.  
About 500 shipping agreement notifications have been filed each year to the Maritime Bureau of 
Japan.  
 
Intellectual Property Rights  
 
3. The Secretariat 's report chapter 3.3.10.1 (p. 73) m entions the Act on the Partial Revision of the 
Patent Act and Other Acts, and states that the act, inter alia, "reviews the employee invention 
system by clarifying the elements to be considered for the 'appropriate remuneration ' of 
employees." New METI gui delines for procedures to determine the details of "reasonable 
remuneration or other economic profits" (3.3.10.2, p.78) are also mentioned.  
 
Could the Government of Japan please elaborate on what these elements and procedures are?  
 
RESPONSE  
Where an employ ment contract, employment regulation or any other criteria ("criteria") set forth 
appropriate remuneration of employee, the Article 35 of the Patent Act exemplifies three elements 
to be considered to determine if the criteria for appropriate remuneration i s not unreasonable as 
follows:  
(a) the circumstances of consultation between employer and employees had taken place in order 
to set such criteria;  
(b) the circumstances of disclosure of the criteria; and  
(c) the circumstances of hearing of opinions of empl oyees at the timing of determining and/or 
granting such remunerations or other economic profits  
 
4. The Secretariat 's report, paragraph 3.214 (p. 86) states: "Despite the vital importance of SMEs 
in Japan's economy, in 2014, they made up only 13% of patent  applications. As a consequence, 
the Japanese government has put various mechanisms in place to promote SMEs' use of 
intellectual property, and enhance their collaboration with large enterprises/universities. Specific 
counters have also been established th roughout the country to respond to SMEs' various 
management issues."  
 
We would like to ask the Government of Japan for elaboration as to what these mechanisms 
consist of, and experiences regarding their efficacy.  
 
RESPONSE  
The Government of Japan provides supports for SMEs according to the needs at each stage of its 
IP activities, from the time they create ideas up to when they establish their business operations, 
in collaboration with related support organizations including IP Comprehensive Support Counter s 
established in each prefecture, chamber of commerce, commerce and industry association, 
research institutes and local governments.  
 
5. In the WTO Secretariat's report, in para 3.215 (p. 86), it is mentioned that, "The IP dispute 
resolution system is set to undergo some significant changes under the 2015 strategic plan." It 
further states: "Specific measures are also being taken to improve SMEs full access to a fairer 
dispute settlement system."  
 
We would like to ask the Government of Japan to explain in m ore concrete terms what these 
specific measures consist of, whether they have already been put into practice and your 
assessment as to what effect they are having.  
 
RESPONSE  
Please refer to the link below, at the pages 19 -26 of "IP Strategic Program 2015 ," which states 
the current situation and challenges as well as the measures in the future regarding the IP dispute WT/TPR/M/351/Add.1  
 
- 165 - 
 
  settlement system. Furthermore, for the latest information, please also refer to the pages 66 –72 
of "IP Strategic Program 2016" available at  the link below. Concrete measures about the system 
are now under review at the related government ministries and agencies including  Cabinet Office, 
Ministry of Justice  and Ministry of Economy, Trade and Industry  based on this Strategic Program.  
Intellectu al Property Strategic Program 2015:  
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku2015_e.pdf . 
Intellectual Property Strategic Program 2016:  
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf . 
 
6. Japan's report, item  4.4 (p. 14) mentions medium - and long -term goals, including the following: 
"Supporting the enhancement of intellectual property management by SMEs and venture 
companies."  
 
Could the Government of Japan please explain this in more specific terms? Which mea sures have 
been put in place in order to enhance the IP management by SMEs in Japan?  
 
RESPONSE  
The Government of Japan provides supports for SMEs according to the needs at each stage of its 
IP activities, from the time they create ideas up to when they est ablish their business operations, 
in collaboration with related support organizations including IP Comprehensive Support Counters 
established in each prefecture, chamber of commerce, commerce and industry association, 
research institutes and local governme nts. 
 Please also refer to the link below, at the pages 38 -42 of IP Strategic Program 2016, which states 
the measures in the future regarding enhancement of the IP management by SMEs. The measures 
are listed depending on the character of the SMEs in the ta ble at the page 36 of the IP Strategic 
Program 2016.  
http://www.kantei.go.jp/jp/singi/titeki2/kettei/chizaikeikaku20160509_e.pdf . 
 
7. Japan 's report, item 4.6 (pp. 14 -15) mentions the Intellectual Property Strategic Program 2016. 
It states: "In this Progra m, 145 concrete actions were formulated under the following four goals: 
Promotion of Intellectual Property Innovation for the 4th Industrial Revolution; Spread/Penetration 
of Intellectual Property Awareness/Activity; Promotion of the Content Industry into New Areas; 
Development of Intellectual Property System Infrastructures."  
 
Could Japan please give an overview of what the most important measures directed at SMEs are? 
What kind of Intellectual Property Innovation is deemed to be important for the 4th Indu strial 
Revolution? What is meant by the "Development of Intellectual Property System Infrastructures"?  
 
RESPONSE  
In considering supports for SMEs, it seems practical to differentiate supports for SMEs developing 
their IP utilizations and for those challen ging thereof. Please refer to the "Current Situation and 
Challenges at pages 35 -38 in the "IP Strategic Program 2016".  
Please also refer to the link below, at pages 8 -17 of "IP Strategic Program 2016," which states the 
necessary IP innovation and the con struction of the next generation IP system to support 
innovation in the digital network era. Further, please refer to pages 66 -72 for the information on 
the "Development of Intellectual Property System Infrastructures".  
http://www.kantei.go.jp/jp/singi/tit eki2/kettei/chizaikeikaku20160509_e.pdf . 
 
Trade Agreements  
 
8. The Secretariat 's report, chapter 2.3.1 mentions that Japan is party to the Information 
Technology Agreement (ITA). We thank Japan for their leading role in the ITA II negotiations that 
were fi nalized at MC 10 in Nairobi.  
 
We commend Japan for undertaking accelerated liberalization commitments in the implementation 
of ITA II and that Japan foresaw to implement all the tariff cuts by July 1, 2016. However, we are 
disappointed that this commitmen t has not been met, and that no tariff liberalization under ITA II 
has taken place to date. We understand this is due to a lack of completion of internal 
parliamentary procedures. We urge Japan to complete the necessary steps to implement the tariff 
elimin ation as swiftly as possible. We would like an explanation of which procedures are necessary 
before this can be done, and which timeframe is foreseen?  
 WT/TPR/M/351/Add.1  
 
- 166 - 
 
  RESPONSE  
The Government of Japan has submitted the Expansion of the Information Technology Agreement 
to the Diet on 24th February, and now waits for its conclusion to be approved by the Diet.  
 
9. We commend Japan for the substantive TPP commitments regarding liberalization of trade in 
industrial goods, including seafood. As regards seafood, are there product s that are exempt from 
tariff liberalization under TPP and could you provide an overview of these? Do you envisage that 
the level of liberalization in seafood products under TPP will be carried forward in other FTAs under 
negotiation, such as the one with the EU?  
 
RESPONSE  
With regard to seafood, some seaweed products are exempt from tariff elimination.  Tariff lines for 
such seaweed products are as follows:  
 
121221.100, 121221.200, 121221.310, 121221.321, 121221.322, 121221.329, 121221.390, 
210690.273, 210 690.401 and 210690.298.  
 
Tariffs for the above -mentioned tariff lines shall be reduced by 15 percents of the base rate on the 
date of entry into force of the TPP Agreement for Japan and shall remain at the level thereafter.  
 
The Government of Japan does no t prejudge and comment on the possible outcome of the ongoing 
FTA/EPA negotiations . 
 
 
17. THE SEPARATE CUS TOMS TERRITORY OF TA IWAN, PENGHU, KINMEN  AND MATSU  
PART I: REGARDING TH E SECRETARIAT REPORT  (WT/TPR/S/ 351) 
 
1. ECONOMIC ENVIRONMENT  
1.2 Recent Economi c Developments  
1.2.1 Monetary policy  
Page 15 (Para 1.10) 
In January 2016, the Bank of Japan (BOJ) decided to introduce a framework of quantitative and 
qualitative monetary easing (QQE) with a negative interest rate. This framework extends the QQE 
that was introduced in April 2013, with a view to achieving the price stability target of 2%.  
 
Question(s)  
1. In 2016, the BOJ claimed repeatedly that the negative interest rate of -0.1% could be lowered 
further. Does this policy continue to apply in 2017? If so, w ill the interest rate be lowered further 
in the first or second -half of this year?  
 
 
RESPONSE  
In September 2016, with a view to achieving the price stability target of 2 per cent at the earliest 
possible time, the Bank of Japan decided to introduce the "  Quantitative and Qualitative Monetary 
Easing (QQE) with Yield Curve Control ". The Bank will cut the interest rates further if it is judged 
necessary.  
 
The Bank will continue with the "  QQE with Yield Curve Control," aiming to achieve a price stability 
target of 2 per cent, as long as it is necessary for maintaining that target in a stable manner. It 
will continue expanding the monetary base until the year -on-year rate of increase in the observed 
CPI (all items less fresh food) exceeds 2 per cent, and stays above the target in a stable manner. 
The Bank will make policy adjustments as appropriate, taking account of developments in 
economic activity and prices, as well as financial conditions, with a view to maintaining the 
momentum toward achieving the price s tability target.  
References: New Framework for Strengthening Monetary Easing: "Quantitative and Qualitative 
Monetary Easing with Yield Curve Control" (September 21, 2016)  
Outlook for Economic Activity and Prices (January 2017)  
http://www.boj.or.jp/en/annou ncements/release_2016/k160921a.pdf , 
http://www.boj.or.jp/en/mopo/outlook/gor1701b.pdf . 
 WT/TPR/M/351/Add.1  
 
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  1.2.3 Structural reforms  
Page 16 (Para 1.17) 
During the review period, a number of steps were taken to achieve structural reform. Efforts are 
under way to increase the minimum wage by 3% annually. A plan to promote the "Dynamic 
Engagement of All Citizens" was rolled out in 2015. (…) Significant progress has been made in 
corporate governance reform, as the Corporate Governance Code and the amendment of the 
Companies Act w ere implemented during the review period (Section 3.3). Furthermore, the 
Government cut the statutory income tax rate to below 30% in FY2016.  
 
Question(s)  
2. Could Japan please elaborate further on the results achieved by its current programme of 
structura l reform, and indicate the direction that future structural reform policies are likely to take?  
 
RESPONSE  
The Government of Japan gives information about the structural reform on its website. Please refer 
to the following URL.  
http://www.japan.go.jp/_user data/abenomics/pdf/170116_abenomics.pdf  
 
1.3 Trade performance  
Page 18 (Para 1.25) 
In 2015, the United States was the largest export market, with a share of 20.2%; followed by 
China with 17.5% (Chart 1.2). The share of Asia as a whole marginally decreased from 57.2% in 
2013 to 56.1% in 2015. The share of the European Union increased slightly from 10% in 2013 to 
10.6% in 2015 (Table A1.3).  
 
Question(s)  
3. Could the Japanese government please elaborate further on the reasons for the decrease in 
Japan's export  share of the Asian market in 2015, and provide details of any measures taken in 
response?  
 
RESPONSE  
The government of Japan is not aware of the figures of chart 1.2 in the Secretariat 's report, which 
are based on UNSD Comtrade Database. According to the f igures, taken from trade statistics 
published by Japan (see below), although the share of exports to Asia slightly decreased, export 
volume in value terms increased.  
 
Exports to Asia , 2013 2015 
Exports, (trillion JPY)  
37.9 40.3 
share, %  
54.3 53.3 
 
2. TRADE  AND INVESTMENT REGIM E 
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
Page 24 (Para 2.12) 
(…) Japan has pursued its bilateral dialogue with the United States within the pre -existing 
institutional framework (the Japan -US Ec onomic Partnership for Growth and the Japan –US 
Framework for a New Economic Partnership) even after the signature of the TPP although at a 
slower pace.  
 
Question(s)  
4. Since the United States has recently announced its withdrawal from the TPP, is Japan 
reconsidering its own trade policies in ways that might affect its current position in the TPP and/or 
involve the pursuit of possible alternatives (such as FTAs) instead?  
 
RESPONSE  
In the face of the rise of protectionism and inward -looking mindsets in the wo rld, Japan believes 
that a free and open economy can be the cornerstone of peace and prosperity, and that free and 
fair trade can bring about "inclusive growth" to all nations and people. In order to maintain and 
enhance the free trade system in the Asia T rans-Pacific region, and in the entire world, Japan will 
strive to maintain and strengthen the rule -based multilateral trading system, with the WTO as its WT/TPR/M/351/Add.1  
 
- 168 - 
 
  core. At the same time, Japan will continue to make efforts to promote high -level FTAs, including 
the TPP, the Japan -EU EPA and the RCEP.  
 
3. TRADE POLICIES AND PRACTICES BY MEA SURE  
3.3.10 Intellectual property rights  
3.3.10.2 Patents  
Page 79 (Para 3.182 ) 
In 2013, the JPO achieved its goal of shortening the period from filing a request for examination to 
issuing a first action (FA pendency) to 11 months or less. According to the authorities, the JPO is 
in the process of moving toward its next decade goal, which is further shortening "total pendency" 
and "FA pendency" to 14 months or less on average and 10 months or less on average, 
respectively.  
 
Question(s)  
5. What measures are the JPO adopting to achieve its next decade goals on shortening " total 
pendency " and "FA pendency " as mentioned above?  
 
RESPONSE  
The JPO makes effort to secure necessary examiners a nd outsources a part of prior art search to 
registered search organizations.  
 
6. What base of reference has the JPO used in formulating its policy for shortening the 
examination pendency? What does the JPO consider to be the ideal time -frame, and does it h ave 
an ultimate goal for the examination pendency period?  
 
RESPONSE  
As a response to the increasing needs of the applicants requesting the reduction of total pendency 
of an examination, the JPO has set the goal for shortening the total pendency to 14 month s or less 
on average. Due to this goal setting, if patent applicants request for examination shortly after its 
filing the application would be granted prior to its publication. It is expected that this will enable 
applicants to build a wide variety of busi ness strategies, including utilizing their patent rights as 
well as keep from public view, those inventions secret for which patents are not granted. The JPO 
plans to achieve the said goal until FY2023. Beyond that, the JPO will develop its plan based on t he 
global situation and needs of the applicants.  
 
3.3.10.6 Geographical indications  
Page 82 (Para 3.195 ) 
Prior to the enactment of this law (Act on Protection of the Names of Specific Agricultural, Forestry 
and Fishery Products and Foodstuffs), Japan had n o system to directly protect geographical 
indications of foodstuffs and agricultural, forestry and fishery products. Although, since 2006, the 
"Regional Collective Trademark System" has granted protection to a combined trademark 
composed of a place name an d a product or service name, as long as it meets several 
requirements under the current trademark law. There are several differences between the new 
system of GI protection and the Collective Trademark System (Table 3.37).  
 
Question(s)  
7. Under the presen t GI protection system and trademark system, one term can be registered as a 
GI as well as a (regional collective) trademark concurrently. It is also possible for the 
aforementioned GI and (regional collective) trademark to belong to different owners; "Tok achi 
Kawanishi Nagaimo" is an example in point. As such, how are consumers prevented from being 
confused or misled?  
 
RESPONSE  
Confusion does not occur even when the name are registered under the two systems, because the 
application for GI registration need s to be filed with a consent of the corresponding regional 
collective trademark right holder (if corresponding trademark exists prior to the GI application), 
and also the name will be registered as GI only when it refers to the same product of the regional  
collective trademark (the name which may cause a confusion will not be registered as GI).  
Regarding "Tokachi Kawanishi Nagaimo", for example, the agricultural cooperative which is a 
regional collective trademark holder, is one of the members of the regis tered GI group. The 
agricultural cooperative the remaining members of the registered producers group of the GI jointly 
filed the application for that GI because such remaining members are permitted to use the regional WT/TPR/M/351/Add.1  
 
- 169 - 
 
  collective trademark by the agricultur al cooperative. Therefore, the user of the regional collective 
trademark under the trademark system and the users of the GI under the GI system are the 
same, and hence it does not cause confusion.  
 
4. TRADE POLICIES IN SE LECTED SECTORS  
4.4 Mining and  Energ y  
4.4.2 Primary Energy  
Page 1 01 (Para 4.6 1) 
Chart 4.3 describes the composition of primary energy supply in Japan for 2008 and 2013 as well 
as the targets set by the new (2014 -15) Japan energy policy for 2030 (see below for a more 
detailed description of this policy). The share of nuclear energy in Japan's primary energy supply 
has crumbled from 14% to 1% from 2008 to 2013 following the closure of nuclear power plants 
after the Fukushima accident in 2011. This has been compensated by an increase of the sha re of 
oil, coal and gas. The total energy consumption declined during the same period partly due to the 
increase in energy efficiency and partly because of the post financial crisis recession.  
 
Question(s)  
8. Chart 4.3 shows that Japan expects, to a certai n extent, to increase the proportion of renewable 
energy supplies from 4% in 2013 to 14% in 2030. Could the Japanese government please provide 
details of the policy tools that have been, or will be, implemented to support the development of 
renewable energ y sectors so as to fulfil the policy goals?  
 
RESPONSE  
The Feed in Tariff (FIT) system was launched in 2012. As the business environment from the 
financial point of view improved, investment in renewable energy was stimulated. It results in 2.5 
times the g rowth of the amount of introduction of renewable energy in just 4 years.  
However, the national burden has become 1.8 trilion JPY, and the Government of Japan revised 
the FIT system. Under the revised FIT, we will try to maximize the introduction of renewa ble 
energy while minimizing national burden.  
 
9. Many other countries have applied a feed -in-tariff (FIT) system to incentivize the development 
of green energies. However, such a policy tool is considered as a form of subsidy that violates 
WTO rules. Has J apan used similar means to boost the development of off -shore wind power?  
 
RESPONSE  
The Government of Japan has applied a Feed in Tariff (FIT) system to incentivize the development 
of green energies, including off -shore wind power.  
 
Page 103 (Para 4.66.)  
Under the provisions of the Foreign Exchange and Foreign Trade Act, foreign entities wishing to 
invest in electric and gas utilities must notify their intention to the competent authorities, including 
the METI. The authorities state that permission may be denied on grounds of, inter alia , public 
order.  
 
Questions  
10. How many foreign companies have gained permission to invest in electric and gas utilities? 
What is the average rate of permission granted to foreign entities wishing to invest in electric and 
gas utilities?  
 
RESPONSE  
The number of the permissions granted is not publicly available. The nu mber of the notifications in 
FY2015 was approximately 500, of which the electricity and gas sector accounted for around 60%.  
 
11. Could Japan please also further  define the terms of "public order" under the said Act, and 
provide details of previous cases in which permission has been denied to foreign entities on the 
grounds of "public order"?  
 
RESPONSE  
The term of "public order" comprises of several factors and ne ed to be carefully examined on a 
case-by-case basis for each specific case.  
 WT/TPR/M/351/Add.1  
 
- 170 - 
 
  4.4.3. Electricity  
Page 1 05 (Para 4.7 3) 
The second phase of the reform also introduces a new licensing scheme for electricity producers. 
Pre-existing categories of producers have been reshuffled. There are now three types of business 
categories: generation only (which requires notification), transmission and distribution (which 
requires licensing), and retail (which requires registration). This will allow the producers belonging, 
for example, to the former category of power producers and suppliers (PPS) to extend their 
activities to retail, which is geared at increasing competition.  
 
Question(s)  
12. Could Japan please provide more detailed information regarding the licensing of busi nesses for 
transmission and distribution of power? What are the procedures and criteria for such licensing? 
Are there any legal or de facto  restrictions on foreign companies to acquire such a licence? Are 
there any other legal restrictions, for example, on  the nationality of the board of directors, or 
shareholding restrictions other than licensing?  
 
RESPONSE  
The power transmission and distribution business is categorized by the Electricity Business Act, 
enacted in April 2015, into three: (1) General Electr icity Transmission and Distribution Business 
(permission system), (2) Electricity Transmission Business (permission system), and (3) Specified 
Electricity Transmission and Distribution Utility Business (notification system).  
Procedures for permission to a pply for the General Electricity Transmission and Distribution 
Business, Electricity Transmission Business, or the notification procedure for Specified Electricity 
Transmission and Distribution Business, are stipulated by the Act, respectively with applica tion 
forms and attached documents.  
Standards for the General Electricity Transmission and Distribution Business license are defined by 
the Act as follows.  
(i) The commencement of the General Electricity Transmission and Distribution Business 
corresponding to demand in the service area.  
(ii) The applicant has sufficient financial basis and technical capability to perform the General 
Electricity Transmission and Distribution Business properly.  
(iii) The General Electricity Transmission and Distribution Busine ss is based on a reliable plan.  
(iv) The Electric Facilities to be used for the General Electricity Transmission and Distribution 
Business are capable of meeting the demand in the service area.  
(v) The commencement of the General Electricity Transmission a nd Distribution Business will not 
result in the existence of an excessive number of Electric Facilities to be used for General 
Electricity Transmission and Distribution Business within the whole or a part of the service area.  
(vi) In addition to what is li sted in the preceding items, the commencement of the General 
Electricity Transmission and Distribution Business is necessary and appropriate for the 
comprehensive and reasonable development of Electricity Businesses, and for the promotion of 
other public i nterests.  
Regarding the entry of foreign capital into Japan's electricity business, individual investigations will 
be conducted from the viewpoint of "maintenance of public order" based on the Foreign Exchange 
and Foreign Trade Control Law.  
 
4.6.2 T elecomm unications  
Page 1 12 (Para 4. 96) 
According to 4.96 of the Telecommunications section, MIC took an interconnection obligation to 
promote fair competition for new mobile virtual network operators (MVNO) in March 2016.  
 
Question(s)  
13. Do the interconnection o bligations include such areas as national roaming, the disclosure  of 
interconnection information, and interconnection fees controlled by the MIC?  
 
RESPONSE  
Under the Telecommunications Business Act (Article 34), facilities of MNOs that have more than 
10% s hare of terminals are designated as "Category 2 Designated Facilities" (Cat.2 facilities). 
MNOs which have Cat.2 facilities (NTT DOCOMO, KDDI, Okinawa Cellular Telephone Company (a 
local subsidiary company of KDDI) and SoftBank) are obliged to file with MI C and publish their 
charges, terms and conditions for interconnection. In May 2015, the Act was amended to add 
several obligations regarding interconnection with telecommunication carriers, including MVNOs, 
such as an obligation to follow calculation metho ds for price caps of interconnection charges, WT/TPR/M/351/Add.1  
 
- 171 - 
 
  stipulated in an MIC ordinance and an obligation to provide information necessary for 
interconnection. The interconnection charges caps consists of "reasonable costs" and "reasonable 
profits". The detailed calc ulation method was specified in MIC Ordinance No. 31 from 2016. 
Additionally, there are general rules for interconnection, such as obligation to accept requests for 
interconnection (Article 32 of Telecommunications Business Act ), and schemes for dispute 
settlement between operators (Article 35 and 39, etc.). There is no specific rule for national 
roaming in the Telecommunications Business Act.  
 
14. Are the obligations applicable to all 3 MNOs (NTT DoCoMo, KDDI group, and SoftBank  group), 
or to NTT DoCoMo o nly? 
 
RESPONSE  
Please refer to answer to Q13  
 
15. If possible, could  Japan please provide us with more details of the calculation methods and 
approved procedures for interconnection fees?  
 
RESPONSE  
Please refer to answer to Q13  
 
PART II: REGARDING T HE GOVE RNMENT REPORT (WT/TP R/G/ 351) 
 
2. TRADE AND INVESTMENT  POLICY  
2.3 FTA/EPA s 
Page 6 (Para 2.14) 
(....) ... Japan has also promoted its regional and bilateral trade policies as a means of 
complementing the multilateral trading system, particularly through Econ omic Partnership 
Agreements that include elements of Free Trade Agreements and institution -building.  
 
Question(s)  
16. According to recent news reports in Japan, in the wake of U.S. President Trump 's formal 
withdrawal of the United States from the TPP, the Japanese government is considering 
reorganizing its headquarters for the Trans -Pacific Partnership into a new body to lead trade 
negotiations with other economies. It is understood that the new body would be cross -ministerial 
and take charge of negotiation s including the ongoing talks with the European Union on an 
economic partnership agreement.  
Could the Japanese government please elaborate further on its trade policy response in light of 
above -mentioned events, as well as its likely future organizational  structure and modus operandi  
for trade negotiations?  
 
RESPONSE  
Nothing has been decided about the establishment of a new organizational structure for trade 
negotiations.  
 
2.4 O ther Regional /Bilateral  Arrangements  
2.4.2 A sia-Europe  Meeting  (ASEM)  
Page 8 (Para 2.19)  
Japan believes that the economic dialogue and cooperation between Asia and Europe through 
ASEM will promote enhanced mutual understanding between the two regions on various economic 
issues, which could lead to increased trade and investment betwe en Asia and Europe, as well as to 
the improved coordination of world economic issues of mutual concern relating to the WTO, 
RTA/FTA, IPR, etc., thereby contributing to the development of the global economy.  
 
Question(s)  
17. The UK is about to trigger Artic le 50 of the Lisbon Treaty, and there are general elections in 
the Netherlands, Germany and France in 2017. In light of the probable changes to the political and 
economic landscape, both globally and in Europe, how does Japan expect be affected?  
Could Jap an please share with us the kind of adjustments that it might be considering to its 
economic or trade policies towards the EU and its member states (including the UK)? For example, 
what are the key issues pending in FTA negotiations between Japan and the E U, and are such 
negotiations now likely to be accelerated?  
 WT/TPR/M/351/Add.1  
 
- 172 - 
 
  RESPONSE  
Japan will continue to be closely looking at related developments of the political and economic 
changes that might be caused by Brexit, and the elections in several EU member states.  
The Japan -EU Economic Partnership Agreement (EPA) is the utmost priority in the relationship 
between Japan and the EU. It is extremely important for Japan and the EU to reach an agreement 
on fundamental elements of the Japan -EU EPA negotiations as early as po ssible, so as to counter 
protectionist movements. Japan will, together with the EU, continue the negotiations with strong 
will, and maintain the momentum toward that goal.  
 
III. TRADE AND DEVELOPMEN T 
3.2 G eneralized  System  of Preferences  
Page 13 (Para 3.8) 
It has been reported that the Japanese government is preparing a system of "graduation" to a 
country having achieved economic development at the developed country level, and "product -by-
exclusion" to a product with a high l evel of global competitiveness.  
 
Question(s)  
18. Could the Japanese government please elaborate further on the above -mentioned system it is 
reported be preparing, of graduation/exclusion from the GSP scheme (e.g., the launch time, the 
countries/items to which it applies) ? 
 
RESPONSE  
Please check the following URL:  
http://www.customs.go.jp/english/c -answer_e/imtsukan/1506_e.htm . 
 
 
18. NEW ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/351)  
SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.4.1 MFN applied tariff  
WT/T PR/S/351, section 3.1.4.1, page 32, para 3.22  
The Secretariat report notes "The structure of Japan 's MFN applied tariff has remained largely 
unchanged over the last few years". While the number of tariff lines at the HS 9 -digit level has 
dropped since FY 2014, Japan 's tariff structure remains quite complicated, with many different 
types of rates.  
 
Questions  
What plans, or regular programmes, are in place to  review applied tariff levels?  
 
RESPONSE  
To cope with current domestic and international economic clim ate, tariff rates have been reviewed 
every year through due procedures.  Please check following URL for more detailed information on 
the tariff revision procedures:  
http://www.customs.go.jp/english/c -answer_e/sonota/9702_e.htm . 
 
Question  
What policies are i n place that would allow Japan to increase or lower its applied tariffs in general 
or in specific circumstances?  
 
RESPONSE  
In Japan, tariff rates are applied to respective products, taking various factors into consideration, 
such as the situation surroundi ng relevant domestic sectors.  
 
3.3.8 Labelling and packaging requirements  
WT/TPR/S/351, section 3.3.8 p. 66, para 3.156  
The Secretariat report notes "a new standard, which entered into force on 1 April 2015, has 
established a third category, that of "Foods  with Functional Claims" (FFC) alongside the two pre -
existing categories ("Foods with Nutrient Functions Claims" (FNFC) and "Food for Specified Health 
Uses"(FOSHU))."  
 
 WT/TPR/M/351/Add.1  
 
- 173 - 
 
  Questions  
Can Japan provide additional information on the foods with function claims ca tegories and the 
rationale behind the categories?  
 
RESPONSE  
It had been considered a problem with the previous system that application of Foods for Specified 
Health Uses was high cost and had a long processing term, and Foods with Nutrient Claims was 
limited in scope of targeted nutrients. The new category of Foods with Health Claims, called "Foods 
with Function Claims", was introduced in order to solve these problems.  
Food business operators can make function claims on food labels when they submit to the 
Secretary -General of the Consumer Affairs Agency necessary information, including scientific 
evidence on food safety and effectiveness in accordance with the rules prescribed by the law, up to 
60 days before marketing the product.  
Foods with Function Claim s are targeted for people not suffering from any disease (excluding 
minors, pregnant women (and those planning a pregnancy), or lactating women). All food products 
including fresh products are subject to this system.  
 
Question  
Leaflet for consumers: What a re "Foods with Function Claims"?  
(http://www.caa.go.jp/foods/pdf/151224_1.pdf ) 
Guidance for industry: The system of "Foods with Function Claims" has been launched! 
(http://www.caa.go.jp/foods/pdf/151224_2.pdf  
 
How does Japan 's food with function claims policies align with other countries policies?  
 
RESPONSE  
Japan established the Foods with Function Claims system taking into account t he labelling system 
for dietary supplements in the United States.  
It is required to submit necessary information, including scientific evidence, up to 60 days before 
marketing the product. Furthermore, this system has high transparency, by means of publish ing 
the information on the website of the Consumer Affairs Agency  
 
SECTION IV: TRADE POLICIES BY SECTOR  
4.1 Agriculture  
4.1.2 Agricultural policies  
4.1.2.1 Legal and Institutional framework  
WT/TPR/S/351, section 4.1, para 4.13, p.  92 
The Secretariat 's repo rt notes that "Since Japan's previous review, there has been little change to 
market access measures (tariffs, the special safeguard, and tariff quotas). The relatively high 
tariffs have helped to maintain higher domestic than world prices".  
 
Questions  
Given the above statement, and the fact that Japanese beef production has declined over recent 
years while consumption is increasing, can Japan explain why it maintains high tariffs on beef 
imports?  
 
RESPONSE  
Japan 's applied tariff rate for beef is set based on the international agreements.  
Japanese beef production has been decreasing in recent years due to several reasons, including 
the temporary decrease of the number of breeding cows. On the other hand, the size of beef 
households is on the way to expandin g, and the structural reform is under way. It is important to 
strengthen the basis of domestic production, without any adverse effect on the efforts of on -going 
structural reform.  
 
Question 
More generally, is Japan concerned about the affordability of food  in Japan given concerns about 
the increase in low -income, including solo -parent families in Japanese society?  
 
RESPONSE  
The Basic Law on Food, Agriculture and Rural Areas stipulates in Article 2, as one of the key policy 
objectives, "a stable supply of go od-quality food at reasonable prices shall be secured for the 
future". Based on this law, the Government of Japan secures a stable food supply to the people WT/TPR/M/351/Add.1  
 
- 174 - 
 
  with an increase in domestic agricultural production as a basis, together with an appropriate 
combi nation of imports and stockpiles.  
Additionally,  as a social security and welfare measure, the Government of Japan provides 
comprehensive support, such as financial support, for needy persons and sole -parent families, and 
so forth  
 
WT/TPR/S/351, section 4.1 .2.1 p. 91, para 4.8  
The Secretariat report outlines objective of Japan 's Basic Plan for Food, Agriculture, and Rural 
Areas. These objectives include: "In May 2016, the Headquarters approved a strategy to increase 
exports of agricultural, forestry and fish eries products and food" . 
 
Questions  
Can you explain how Japan plans to carry this strategy out?  
 
RESPONSE  
The government established "the Plan for Empowering Export on Agriculture, Forestry and 
Fisheries" in May 2016 to support agricultural, forestry, fis hery and food businesses in several 
measures, for examples:  
- to consolidate overseas market information and provide them through the Japan External Trade 
Organization (JETRO)  
- to enhance the consulting and advice systems of JETRO and MAFF  
- to implement effective promotion events in collaboration with chefs and overseas Japanese 
restaurants  
- to improve the domestic export -related procedures, such as the issuance procedures for various 
certificates  
- to establish a system to guarantee the quality and spec ial features of Japanese products to 
overseas consumers and businesses.  
In addition to the plan, country/region -specific and products specific export strategies were 
provided for private businesses to precede their exports.  
 
Question  
Can you provide an upd ate on how this strategy is progressing?  
 
RESPONSE  
Since the establishment of the plan, relevant ministries and agencies have implemented their own 
policy measures and periodically verified their progresses.  
 
WT/TPR/S/351, section 4.1.2.1 p. 91, para 4.9  
The Secretariat report notes "Japan 's agricultural policy is set out in the Food, Agriculture and 
Rural Areas Basic Plan… The current Plan, adopted in March 2015, sets out the objectives of 
doubling incomes in agriculture and rural areas over the next ten y ears by increasing domestic and 
export demand, improving value chains, reducing costs, promoting structural reform, and 
improving productivity."  
 
Questions  
What, if any, specific agricultural structural reforms is Japan planning to implement over the next 
five to ten years to overcome these barriers?  
Can Japan provide an update on how this strategy is progressing?  
 
RESPONSE  
The Go vernment of Japan published "FY 2015 the Annual Report on Food, Agriculture and Rural 
Areas in Japan", which describes trends in f ood, agriculture and rural areas. Also, the Government 
of Japan revised "Japan Revitalization Strategy" in June 2016. Please see the links below.  
FY2015 the Annual Report on Food, Agriculture and Rural Areas, p18 -p21 for structural reforms.  
http://www.maff .go.jp/e/data/publish/attach/pdf/index -38.pdf . 
Japan Revitalization Strategy in the web site "Abenomics is progressing", p31 -p37 for structural 
reforms.  
http://www.japan.go.jp/abenomics/index.html . 
 WT/TPR/M/351/Add.1  
 
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  WT/TPR/S/351, section 4.1.2. 2 p. 92, para 4. 16 
 
The Secre tariat report notes that fill rates for "Other dairy products for general use" were over 
90% for each year from FY2007 to FY2014 but fill rates for other quotas, such as "skimmed milk", 
"prepared whey (for infant formula)", "butter and butter oil", and som e others were consistently 
below 40%.  
 
Questions  
What were the reasons for the ongoing significant underfill for such quotas as skimmed milk, 
prepared whey (for infant formula) and butter and butter oil, when the over 90% fill rates for 
other dairy product s indicates a high demand for such products generally?  
2. What effect does this quota underfill have on Japan’s manufacturing sector with respect to 
sourcing ingredients?  
3. What plans does Japan have to address these significant and ongoing underfilll ra tes, and what 
suggestions, if any, has the manufacturing sector made?  
 
RESPONSE  
For some quotas, such as "skimmed milk  powder for other purposes (for specialized purposes 
including mixed feed) ", "prepared whey (for infant formulas) ", and " butter and butter  oil (for 
specialized purposes including international airline use for flights and international exhibitions) ", 
these quotas have been unfulfilled as the domestic needs related to these quotas have not been 
increasing.  
Concerning unused quotas, a scheme of  reallocation has already been implemented.  
 
 
WT/TPR/S/351, section 4.1.2. 2 p. 92, para 4.17  
 
The Secretariat report notes " The method of administering the quotas has remained unchanged 
since Japan's previous review. It varies from one quota to another, a lthough 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).” “Under all metho ds, the applicant for an allocation must meet criteria such as 
end-use requirements, a record as a n importer, planned usage, etc."  
 
4. As this statement indicates the quota system Japan administers is complex. Does Japan have 
any intention to change this?  
5. As noted in section 4.1.2.2 p.92, para 4.16 above, there is an ongoing significant underfill of 
some of these quotas, and yet there is clearly consumer demand in some areas such as milk fat 
where there have been shortages. Can Japan comment on why it m aintains such a complex 
system of tariff quota administration when underfill persists?  
 
RESPONSE  
The method of quota allocation and its administration is publicly announced through WTO 
notifications and Government’s website and is conducted in a fair and transparent manner. Japan 
has no plan to change procedures for the allocation of tariff quotas.  
Most of butter (for general use) is imported through the state trading and the fill -rate of the quota 
is high enough. In case of shortage, the government incre ases import quantity of butter for 
increasing its supply through state trading.  
 
4.1.2.3.7 Dairy  
WT/TPR/S/351, section 4.1.2.3.7, p. 96, para 4.42  
 
The Secretariat report notes " In 2014, there was a shortage of butter supply in the Japanese 
market; the Gov ernment decided to import 10,000 tonnes of butter in addition to 3,000 tonnes of 
butter under Japan's Current Access commitment, under which ALIC was to import 137,000 tonnes 
(milk equivalent basis) of d airy products including butter."  
 
6. Has Japan consid ered an increase in the size of the quota volume of its milk fat quotas to help 
cover the supply shortage of milk fat?  
 WT/TPR/M/351/Add.1  
 
- 176 - 
 
  RESPONSE  
The Government of Japan has allocated the tariff quota of milk fat, based on the schedule as the 
result of the UR negotiation.  
 
4.1.2.4 Support levels  
4.1.2.4.2 OECD indicators  
WT/TPR/S/351, section 4.1.2.4.7, p. 97, para 4.47  
Section IV, paragraph 55 of the Secretariat report states that "Despite changes in agricultural 
programme over the past few years, support and protection gi ven 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 lin ked to prices or production as well as general support such as 
research and extension services. Market price support is the main component and it, along with 
other transfers based on output and inputs, is categorized by the OECD as one of the potentially 
most production and trade -distorting forms of support."  
 
Question  
Please explain what structural reforms Japan is planning to undertake over the next 5 year 
intended to reduce the trade -distorting forms of support currently provided to Japan 's agriculture 
sector?  
 
RESPONSE  
Taking into account the result of the Uruguay Round negotiations, the Government of Japan has 
reviewed its market price support policies and introduced and expanded direct payments. The 
Japanese -style direct payment was introduced in 2015,  as one of such direct payments. The 
Government of Japan will continue to pursue structural reform that fits the agricultural situation in 
Japan, in accordance with the WTO Agreement on Agriculture  
 
4. Support for fisheries  
WT/TPR/S/351, section 4.3, p. 10 1, Table 4.10 Govern ment transfers to fishing, 
2007 -13 
Table 4.10 states that cost -reducing transfers to marine capture fisheries have increased from 0.4 
billion yen in 2007, to 3.7 billion yen in 2013.  
 
Questions  
What is covered by the category of "cost -reducing transfers"?  
 
RESPONSE  
"Cost -reducing transfers" include such subsidies as interest subsidies and compensation for 
increase in the fuel price above the average for the past several years.  
 
Question  
Why has funding to this area increased in recent y ears?  
 
RESPONSE  
The increase in "Cost -reducing transfers" from 2009 to 2013 is due to the increase in funding for 
the compensation for increase in the fuel price because the price of crude oil had increased at this 
period.  
 
4.4 Mining and Energy  
WT/TPR/S/ 351, section 4.4.2 Primary energy, page 102, paragraph 4.62  
The Secretariat 's report, at paragraph 4.62 notes that Japan is highly dependent on imports for all 
its fossil fuels; this has a bearing on its long -term strategy on energy mix. The report notes t hat 
this strategy is detailed in the 4th Strategic Energy Plan of Japan, published in April 2014 under 
the framework of the Basic Law on Energy Policy of 2002 (Act No. 71), the first such plan after the 
Fukushima accident and the Great East Japan Earthquak e in 2011. It establishes four basic 
principles, known as the 3E+S, namely stable supply (energy security), cost reduction (economic 
efficiency), environment, and safety. Its aim is to build a multi -layered and diversified flexible 
energy demand/supply str ucture.  WT/TPR/M/351/Add.1  
 
- 177 - 
 
  Question  
In light of the basic principles set out in the 4th Strategic Energy Plan of Japan , has Japan 
considered utilising the G20 peer review process for reform of fossil fuel subsidies as a mechanism 
for both reviewing its fossil fuel policies and sharing lessons learned from recent challenges?  
 
RESPONSE  
Japan supports the G20 peer review process for reform of fossil fuel subsidies and welcomes the 
outcome and the lessons learned from the past reviews. As we have no inefficient fossil fuel 
subsidies that encourages wasteful consumption (IFFS) as well as being under the budgetary and 
human resource constraints, our understanding is that Japan is not among the priority countries 
for the review but would consider participating in the peer review tea m to review the third country 
as far as resources are permitting.  
 
Section IV: TRADE POLICIES IN SELECTED SECTORS  
WT/TPR/S/351, page 106, paras 4.76.and 4.77.  
The Secretariat 's report notes that "new circumstances have added new objectives to the 
electrici ty reform, notably to secure stable supply of electricity by facilitating even more power 
interchanged between regions, to hold down tariffs as much as possible and to give due regard to 
the energy mix especially regarding nuclear and renewables. The targe ts for 2030 for the 
respective shares of nuclear and renewables in the electricity mix have already been established in 
the Long -Term Energy Supply and Demand Outlook, mentioned above. These targets are the 
following: for nuclear from 1% presently to 20 -22% and for renewables from 13% of the total 
presently to 22 -24% (of which solar 7%, biomass 3.7 -4.6%, geothermal 0.8. -1.1% and hydro 8.8 -
9.2%). In the meantime power demand is expected to increase slightly (from 966.6 billion kWh to 
980.8 billion kWh).  
In addition this electricity policy will be affected by the results of COP21 and the Paris treaty. 
Japan is currently redrafting a Green House Gas emission plan which will contain new reduction 
targets."  
 
Questions  
New Zealand welcomes Japan 's intentions to i ncrease energy consumption from renewable sources 
by 2030. In this light, and considering the sharp increase in domestic electricity prices post 
Fukushima , what specific actions is Japan taking to ensure that it meets its renewable energy 
generation goals?  
 
RESPONSE  
The Feed in Tariff (FIT) system was launched in 2012. As the business environment from the 
financial point of view improved, investment in renewable energy was stimulated. It resulted in 2.5 
times growth of the amount of introduction of renewabl e energy in just 4 years.  
However, the national burden has become 1.8 trilion JPY, and the Government of Japan revised 
the FIT system. Under the revised FIT, we will try to maximize the introduction of renewable 
energy while minimizing national burden.  
 
Question  
Regarding the above target for geothermal generation, what steps has Japan taken to facilitate the 
development of geothermal resources?  
 
RESPONSE  
The Government of Japan is steadily facilitating the development of geothermal power generation 
with a ppropriate support measures, such as subsidy for geological survey, investment for 
exploration, and loan guarantee for construction of power generation facilities.  
 
REPORT BY THE JAPANESE GOVERNMENT (WT/TPR/G/351)  
SECTION IV: Japan 's domestic policies  
4.4 Agricultural Reform  
WT/TPR/G/351, section 4.3, p. 16, para 4.14  
The Japanese government report mentions the challenges the government is facing in agricultural 
reforms, for example Japan stated "In order to address challenges such as aging society and 
declining population, in March 2015 the government revised "the Basic Plan.""  
 WT/TPR/M/351/Add.1  
 
- 178 - 
 
  Question  
Can Japan advise what measures they are putting in place to address the challenges of aging 
farmer populations?  
 
RESPONSE  
In order to address the challenges such as aging society and declining populations, it is necessary 
to enhance the competitiveness of agriculture by implementing industrial policies such as farmland 
consolidation and food export.  
The Government of Japan published "FY2015 the Annual Report on Food, Agricu lture and Rural 
Areas in Japan", which describes trends in food, agriculture and rural areas. Also, the Government 
of Japan revised "Japan Revitalization Strategy" in June 2016. Please see the links below for more 
information about policy measures and prog resses.  
・ FY2015 the Annual Report on Food, Agriculture and Rural Areas  
http://www.maff.go.jp/e/data/publish/attach/pdf/index -38.pdf . 
・Japan Revitalization Strategy in the web site "Abenomics is progressing"  
http://www.japan.go.jp/abenomics/index.html . 
 
Question:  
Can Japan update us on the outcomes of efforts to attract young people in the agriculture sector?  
 
 
19. INDIA  
Questions on Secretariat Report (WT/TPR/S/351)  
 
Question 1  
What steps are being taken by the Government of Japan to increase the participation of women in 
the labour market in Japan? (Secretariat Report, para 1.3) . 
 
RESPONSE  
The Government of Japan has strengthened the support we provide so that women can continue 
working after the birth of a child. In 2014, the Government of Japan raised the rate o f childcare 
leave benefits for the first six months, after the leave begins, from 50 percent, to 67 percent of 
wages received prior to the leave. In 2013, in order to accelerate the preparation of childcare 
arrangements, Japan set a target of securing chil dcare arrangements for an additional 400,000 
children by the end of fiscal 2017, but in 2018 we increased this, making slots for 500,000 children 
our new goal.  
Furthermore, in last April 2015, "the Act on Promotion of Women 's Participation and Advancement 
in the Workplace" fully entered into force. With this Act, large companies are obligated to identify 
and analyze women's participation, from the time of recruitment to promotion, and to devise 
action plans that includes numeric targets based on the data, a nd publish their results.  
Through these efforts, the percentage of women in their child -rearing years, who are in the 
workforce has increased at an accelerated pace.  
 
Question 2  
What specific measures have been introduced under the "Dynamic Engagement of A ll Citizens" 
Plan to boost labour force participation rate? (Secretariat Report, para 1.17) . 
 
RESPONSE  
In 2015, Prime Minister Abe launched the nation 's efforts to tackle the issue of the declining birth 
rate and aging population, with the targets of "the largest nominal GDP in post -war history of 600 
trillion yen," "a desirable birth rate of 1.8," and "no one forced to leave their jobs for nursing 
care." In June, 2016, "The Japan 's Plan for Dynamic Engagement of All Citizens," which includes 
specific measu res to achieve these targets, was compiled. In order to promote related measures, 
deciding when to take what kind of specific measures, with respect to each topic, with concrete 
deadlines, and continually reviewing them, the Government of Japan drafted the  roadmaps of 
these measures. The detailed roadmaps are provided here.  
http://www.kantei.go.jp/jp/singi/ichiokusoukatsuyaku/pdf/plan2.pdf . 
 
Question 3  
What is Japan's policy stand on including labour standards/ provisions in Trade Agreements?  
 WT/TPR/M/351/Add.1  
 
- 179 - 
 
  RESPONSE  
Deterioration of labour quality could have a significant negative impact on trade and investment. 
Thus, the Government of Japan considers that protection of labour rights is important, not only 
from the perspective of protecting human rights but also from tha t of promoting trade and 
investment, and bringing economic growth through enhanced labour productivity and political and 
social stabilization. As a simple fact, the number of trade and investment agreements with labour 
provisions has risen world wide, and the Government of Japan recognizes the importance of such 
provisions.  
 
Para 3.70, Page 44  of the WTO Secretariat 's Trade Policy Review states that"… In order to promote 
exports of agricultural, forestry, and fishery products, the Ministry of Agriculture, F orestry and 
Fisheries has taken measures such as overseas promotion of Japanese foods and agricultural 
products, overseas market research, support for presentations given at exhibitions overseas, 
provision of business meeting opportunities in Japan and ove rseas, and offering training seminars 
in Japan and overseas."  
 
Question 4  
Since the statement is covered under the para dealing with JBC and NEXI, it may be clarified 
whether these promotional measures are implemented under JBIC or NEXI, and if so, the rol e of 
these institutions.  
 
RESPONSE  
JBIC and NEXI do not implement promotional measures that are being taken by Ministry of 
Agriculture, Forestry and Fisheries.  
 
Para 3.71, Page 44  of the WTO Secretariat 's Trade Policy Review state that"… NEXI provides trad e 
and investment insurance with the objective of breaking even financially…… In July 2015, the Act 
of Amendments of the Trade Investment Insurance Act was adopted by the Diet to transform NEXI 
from an independent administrative into a Special Stock Corpora tion; the Act is to enter into force 
in April 2017".  
 
Question 5  
Whether the Mission, Vision and Organization Objectives of NEXI remains the same or has it 
changed after the enactment of July 2015?  
 
RESPONSE  
With the amendment of the Trade and Investment I nsurance Act enacted on July 2015, NEXI will 
become a special stock company from an incorporated administrative agency. However, the 
mission, vision and organization objectives of NEXI will not change.  
 
Question 6  
Whether the modified organization objectiv e of NEXI is to achieve break -even, or profit motive or 
taking care of public interest?  
 
RESPONSE  
With the amendment of the Trade and Investment Insurance Act enacted on July 2015, NEXI will 
become a special stock company from an incorporated administrativ e agency. However, the basic 
idea that NEXI is operated based on the principle of financial break -even in the medium - and long -
term, founded with the premium from the insured, remains unchanged after the transformation.  
 
Table 3.5, Page 44  gives details on  premium income and claims paid under NEXI insurance 
activity. Claims paid under Export Credit Insurance, in the year 2015, has increased 9 times over 
the previous year (from Yen 2709 billion in 2014 to Yen 21,926 billion in 2015.  
 
Question 7  
What are the reason for sudden jump in claims paid under Export Credit Insurance in the year 
2015? Has this led to concomitant adjustments in premium rates?  
 
RESPONSE  
Most of claims paid under Export Credit Insurance in the year 2015 were related to political risk 
events related to Venezuela.  
Please see the FY2015 Annual Report: http://nexi.go.jp/en/publications.html (page10 ). WT/TPR/M/351/Add.1  
 
- 180 - 
 
  Premium rates adjustment has not been made, because the level of claim paid is still manageable . 
 
Question 8: Whether the claims paid are for tra nsactions in the nature of Short Term or 
Medium/Long Term? What is the proportion?  
RESPONSE  
As Table 3.5 (Page 44) shows, the claims paid are mostly for short term transactions.  
Please see FY2015 Annual Report: http://nexi.go.jp/en/publications.html  (page2 4) 
 
Question 9  
What is the share of Overseas Investment Insurance in the overall claims settled ? 
 
RESPONSE  
It is 0%.  
 Please see FY2015 Annual Report: http://nexi.go.jp/en/publications.html(page24) . 
 
Para 3.72 of the WTO Secretariat 's Trade Policy Review s tates that most of JBIC 's lending activities 
are for overseas investment loans which represented than three quarters of the total operati ons of 
Yen 2397.4 billion in FY 2015.  
 
Question 10  
What is the share of loan defaults under this portfolio? What kind of  support in recovery of such 
loans is provided by the Japanese government?  
 
RESPONSE  
There is no bankrupt loan under current portfolio. The Government of Japan does not provide 
support in recovery of such loans.  
 
Para 3.73  of the WTO Secretariat 's Trade Po licy Review states that"…..JBIC 's funding comes from 
different sources, but is mostly from government accounts or with government guarantees 
including government -guaranteed foreign bonds, borrowing from the Fiscal Investment and loan 
Programme (FILP), and the Foreign Exchange Fund Special Account (FEFSA). (Table 3.7)"  
 
Question 11  
More that 55% of the JBIC's funding sources is through borrowing from the FEFSA in 2015; What 
is the cost paid by JBIC for sourcing these funds? How does the cost compare with the  FILP agency 
bonds or overall cost of funds? How do these costs compare with market borrowings?  
 
RESPONSE  
JBIC borrows from the FEFSA at the cost of market -based interest rates, which is equivalent to the 
average cost of JBIC's borrowing from market.  
 
Page  – 63, Para – 3.136 & 3.139  
 
Question 12  
Japan is requested to provide justification for maintaining MRL standards for agricultural chemicals 
in which there is no Codex standard set at the international level.  
 
RESPONSE  
The Agreement on the Application of  Sanitary and Phytosanitary Measures stipulates that:  
-Members have the right to take sanitary and phytosanitary measures necessary for the protection 
of human, animal or plant life or health (Article 2.1).  
-Members shall ensure that their sanitary and p hytosanitary measures are based on an 
assessment, as appropriate to the circumstances, of the risk to human, animal or plant life or 
health, taking into account risk assessment techniques developed by the relevant international 
organizations (Article 5.1).  
The Ministry of Health, Labour and Welfare of Japan (MHLW) establishes maximum residue limits 
(MRLs) for agricultural chemicals, including veterinary drugs and pesticides, or takes other risk 
management measures in order to protect consumers ' health on th e basis of the scientific 
evidence (e.g. residue trial data, GAP information) and risk assessment conducted by the Food 
Safety Commission of Japan (FSCJ), the national risk assessment body.  
In general, the MHLW elaborates MRLs for agricultural chemicals i n food based on GAP 
information, residue trial data, and other scientific data, taking into account Codex MRLs and other WT/TPR/M/351/Add.1  
 
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  countries ' MRLs. The MHLW estimates dietary exposure from the national consumption data and 
residue data, and compares it with the heal th-based guidance value (e.g. ADI, ARfD), which is 
scientifically established by the risk assessment bodies.  
The MHLW also sets import tolerances for agricultural chemicals in response to requests from 
overseas countries, manufacturers or industries, to p rotect consumers ' health and ensure fair 
practices in food trade, since Japan is one of the biggest food -importing countries in the world.  
For some agricultural chemicals including substances with no Codex standards, provisional MRLs 
are established in se veral commodities. The MHLW has been reviewing these provisional MRLs 
based on the latest scientific data, taking into account Codex MRLs.  
It is important to manage risks pertaining to agricultural chemicals by appropriate management 
measures, such as sett ing usage standards or setting MRLs in food and feed. Japan continues to 
make an effort to establish MRLs on the basis of sound science and harmonization with 
international standards.  
 
Japan is further requested to provide justification if any and indicate  the notifications under which 
it has notified to the SPS committee of the WTO . 
 
Table 1 provides an illustrative list of 11 agricultural chemicals which are used to 
impose MRL standards on 100 different agricultural products imported into the Japan 
market s. 
Japan has a total non -codex MRL standards/restrictions on 161 such agricultural 
chemicals which has a products coverage ranging from a minimum of one agricultural 
product to a maximum 363 agricultural products (see table 1 first row).  
 
Japan is requeste d to give the justification of how these non -codex MRL standards on agricultural 
chemicals should not be considered as protectionism prevalent in its agricultural sector.  
 
Table 1  Usage of Non Codex MRL Standards on Agricultural Chemicals  
Agricultural Chem icals Codex  Japan MRL Standards: Product Coverage  
Carfentrazone -ethyl No MRL Standard  363 
Sethoxydim  No MRL Standard  273 
Trifluralin  No MRL Standard  206 
Flonicamid  No MRL Standard  158 
Sulfentrazone  No MRL Standard  158 
Fosetyl -Al No MRL Standard  138 
Pendimethalin  No MRL Standard  138 
Spiromesifen  No MRL Standard  129 
Halosulfuron -methyl  No MRL Standard  106 
S-metolachlor  No MRL Standard  106 
Flumioxazin  No MRL Standard  100 
Source:  Global MRL Database last accessed on 22.09.2015.  
Page – 63, Para – 3.136 & 3.139  
 
Question 13  
Japan is requested to provide justification for maintaining a more stringent standard in MRL terms 
compared to the Codex standards for the 23 agricultural products indicated below.  
 
RESPONSE  
The Government of Japan takes into accoun t the Codex standards whenever reviewing Maximum 
Residue Limits (MRLs) for agricultural chemicals, in accordance with Article 3.1 of the WTO SPS 
Agreement. The Government of Japan, when necessary, sets food standards different from Codex 
standards based on  scientific evidence. For example, more restrictive MRLs of agricultural 
chemicals in some commodities can be established to protect consumers ' health, if the estimated 
dietary exposure from national consumption data is above health -based guidance value (e .g. ADI, 
ARfD). This measure is consistent with Article 3.3 of the SPS Agreement.  
 
For some agricultural chemicals, MRLs in certain commodities set by the Government of Japan are 
different from Codex MRLs due to differences in residue definition for compli ance with the MRL or 
portion to which MRL is applied between Japan and Codex. Some agricultural chemicals are under 
review for revising their MRLs based on the latest scientific data, taking into account the latest 
Codex standards.  WT/TPR/M/351/Add.1  
 
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  The Government of Japan would like to note that some of the MRLs which India mentioned in the 
annex document are already revised, or will be revised soon, to align with Codex standards (e.g. 
difenoconazole). The latest Japan 's MRLs for agricultural chemicals in foods are availabl e at: 
http://m5.ws001.squarestart.ne.jp/foundation/search.html  
The Government of Japan continues to make an effort to establish MRLs on the basis of sound 
science and harmonization with international standards  
 
Question 14  
In respect to the MRL on agricult ural chemicals for each of agricultural product, could the Japan 
indicate whether the requisite risk assessments were undertaken or the relevant scientific evidence 
was available?  
 
RESPONSE  
The MHLW takes appropriate risk management measures, including se tting MRLs for agricultural 
chemicals for ensuring food safety on the basis of the scientific evidence (e.g. residue trial data, 
GAP information), and risk assessments performed by FSCJ.  
Reports of risk assessments by FSCJ are available at its website as f ollows:  
Pesticide: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=001  Vet drug: 
http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=002   
Feed additive: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=012  Reports of 
MRL setting are available at the following MHLW website (Japanese only):  
http://www.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin/zanryu/bukaihoukoku.ht
ml 
Some agricultural chemicals are under review for revising their MRLs based on the  latest scientific 
data, taking into account the latest Codex standards. Reports of their risk assessments and MRLs 
setting will be published at the above websites.  
 
Question 15  
Could the Japan point out the specific documents containing the risk assessmen ts/scientific 
evidences for each MRL limits set for the 23 agricultural products?  
 
RESPONSE  
The MHLW takes appropriate risk management measures, including setting MRLs for agricultural 
chemicals for ensuring food safety on the basis of the scientific evid ence (e.g. residue trial data, 
GAP information), and risk assessments performed by FSCJ.  
 
Reports of risk assessments by FSCJ are available at its website as follows:  
Pesticide: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=001  
Vet drug:  http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=002  
Feed additive: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=012  
Reports of MRL setting in food are available at the following MHLW website (Japanese only):  
http://ww w.mhlw.go.jp/stf/seisakunitsuite/bunya/kenkou_iryou/shokuhin/zanryu/bukaihoukoku.ht
ml 
Some agricultural chemicals are under review for revising their MRLs based on the latest scientific 
data, taking into account the latest Codex standards. Reports of their  risk assessments and MRLs 
setting will be published at the above websites.  
 
Question 16  
Japan is requested to indicate how the use of default MRLs standards of (0.01 ppm) are justified 
under the appropriate level of protection (ALOP) of the SPS agreement of WTO?  
 
RESPONSE  
Japan introduced the positive list system for agricultural chemical residues in food in 2005. Under 
the new system, 65 substances were designated as chemicals that do not pose adverse health 
effects, and MRLs were established for 799 sub stances, including 758 substances for which 
provisional MRLs were set.  
It is considered to be appropriate that a certain limit be applied to the chemicals without 
established MRLs, with a view to protecting public health, while minimizing negative impact o n 
food trade, as Japan could not afford to stake the health of consumers by introducing unlimitedly 
to domestic market foods containing agricultural chemicals that are not known or not in use in 
Japan, without a robust risk assessment that also takes into account the volume of food 
consumption of the Japanese population. The limit was set at 0.01 ppm based on relevant WT/TPR/M/351/Add.1  
 
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  evaluation, including the ones conducted by scientific committees associated with relevant 
international organizations.  
Japan considers that  these measures do not go against the spirit of the WTO Agreement. Japan 
continues to make an effort to establish and review MRLs on the basis of sound science and 
harmonize with international standards.  
 
PRODUCT 1: BARLEY, G RAIN  
The agricultural product o f Barley, grain out of the total 36 agricultural chemicals with MRL 
standards for eight agricultural chemicals, Japan is maintaining a  higher MRL that is more stringent 
when compared to Codex MRL levels.  
 
Table 2 Stringent MRL Standards for Barley, grain  
Agricultural Chemicals  Japan MRL  Codex MRL  
Azoxystrobin  0.50 1.50 
Deltamethrin  1.00 2.00 
Glyphosate  20.00  30.00  
Lambda Cyhalothrin  0.20 0.50 
MCPA  0.10 0.20 
Piperonyl Butoxide  24.00  30.00  
Trinexapac -ethyl 0.60 3.00 
Zeta-Cypermethrin  0.50 2.00 
Averag e 1.17  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 2: BEET, SUG AR, ROOT  
Beet, sugar, root out of total agricultural chemicals  with MRL standards  of 31, in two agricultural 
chemicals , Japan is maintaining a higher MRL which is more s tringent when compared to Codex 
MRL levels. In the case of agricultural chemical  Glyphosate, the stringency is 75 times higher than 
Codex standard.  
 
Table 3 Stringent MRL Standards on AI 's for Beet, sugar, root  
Agricultural Chemicals  Japan MRL  Codex MRL  
Glyphosate  0.20 15.00  
Imidacloprid  0.40 0.50 
Average  3.17  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 3: CATTLE, M EAT 
The agricultural product of Cattle, meat out of the total 80 agricultural chemicals with MRL 
standards, for thirty  four agricultural chemicals, Japan is maintaining a higher  MRL which is more 
stringent when compared to Codex MRL levels. The MRL standard is 150 times higher in the case 
of agricultural chemical  Lambda Cyhalothrin when compared to the Codex standard.  
Table 4 Stringent MRL Standards for Cattle, Meat  
Agricultural Chemicals  Japan MRL  Codex MRL  
Alpha -Cypermethrin  0.10 2.00 
Aminopyralid  0.02 0.10 
Beta-cyfluthrin  0.02 0.20 
Bifenazate  0.01 0.05 
Bifenthrin  0.50 3.00 
Boscalid  0.20 0.70 
Chlorpyrifos  0.50 1.00 
Chlorpyrifos -methyl  0.05 0.10 
Cyfluthrin  0.02 0.20 
Cypermethrin  0.10 2.00 
Deltamethrin  0.03 0.50 
Difenoconazole  0.05 0.20 
Diflubenzuron  0.05 0.10 
Dinotefuran  0.05 0.10 
Emamectin  0.00 0.00 
Endosulfan  0.10 0.20 
Fenpyroximate  0.01 0.20 WT/TPR/M/351/Add.1  
 
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  Agricultural Chemicals  Japan MRL  Codex MRL  
Fipronil  0.04 0.50 
Flubendiamide  1.00 2.00 
Fluopyram  0.10 0.50 
Indoxacarb  1.00 2.00 
Lambda Cyhalothrin  0.02 3.00 
MCPA  0.08 0.10 
Methoxyfenozide  0.20 0.30 
Novaluron  0.70 10.00  
Oxydemeton -methyl  0.01 0.05 
Permethrin  0.40 1.00 
Phosmet  0.20 1.00 
Piperonyl But oxide  2.00 5.00 
Spinetoram  0.01 0.20 
Spinosad  2.00 3.00 
Spirotetramat  0.02 0.05 
Thiacloprid  0.03 0.10 
Zeta-Cypermethrin  0.10 2.00 
Average  5.27  
Source:  Global MRL Database last accessed on 22.19.2015.  
PRODUCT 4: CHICKPEA  
In the case of agricultural product Chickpea out of total agricultural chemicals  with MRL standards  
of 24 however, in nine agricultural chemicals , Japan maintains a higher MRL which is more 
stringent when compared to Codex MRL levels. Japan is maintaining more higher standards than 
Codex standards on these agricultural chemicals  in the case of Chickpea i.e., Bifenazate, Spinosad, 
Alpha -Cypermethrin, Zeta -Cypermethrin.  
 
Table 5  Stringent MRL Standards for Chickpea  
Agricultural Chemicals  Japan MRL  Codex MRL  
Alpha -Cypermethrin  0.05 0.70 
Azoxystrobin  0.50 3.00 
Bifenazate  0.30 7.00 
Boscalid  0.30 3.00 
Chlorothalonil  0.20 1.00 
Flubendiamide  1.00 2.00 
Paraquat dichloride  0.05 0.50 
Spinosad  0.02 0.30 
Zeta-Cypermethrin  0.05 0.70 
Average  4.64  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 5: COCONUT  
The agricultural product of Coconut out of the total 6 agricultural chemicals with MRL standards, 
for one agricultural chemical, the MRL standards of Japan is seen to be more stringent when 
compared  to the international st andards (Codex).  
 
Table 6 Stringent MRL Standards for Coconut  
Agricultural Chemicals  Japan MRL  Codex MRL  
Spinosad  0.02 0.07 
Average  0.80  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 6: COFFEE BE AN, GREEN  
In the case of agricultural product in Coffee Bean, green out of total 3  agricultural chemicals  with 
MRL standards,  in the case of one agricultural chemical Japan maintains a higher MRL which is 
more stringent when compared to Codex MRL levels.  
Table 7  Stringent MRL Standards for Cof fee Bean, Green  
Agricultural Chemicals  Japan MRL  Codex MRL  
Imidacloprid  0.70 1.00 
Average  0.85  WT/TPR/M/351/Add.1  
 
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  Source:  Global  MRL Database last accessed on 22.09.2015.  
PRODUCT 7: CORN, GRA IN 
The agricultural product of Corn, grain out of the total 51 agricultural chem icals with MRL 
standards, in six agricultural chemicals the MRL standard of Japan is seen to be higher or more 
stringent when compared to the international standards (Codex).  
Table 8  Stringent MRL Standards for Corn, grain  
Agricultural Chemicals  Japan MRL  Codex MRL  
Alpha -Cypermethrin  0.20 0.30 
Deltamethrin  1.00 2.00 
Glyphosate  1.00 5.00 
Piperonyl Butoxide  24.00  30.00  
Pirimiphos -methyl  1.00 7.00 
Zeta-Cypermethrin  0.20 0.30 
Average  0.88  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUC T 8: CUCUMBER  
In the agricultural product of Cucumber out of the total 60 agricultural chemicals with MRL 
standards, for two agricultural chemicals the MRL standards of Japan is  seen to be higher or more 
stringent when compared to the international standar ds (Codex).  
Table 9  Stringent MRL Standards for Cucumber  
Agricultural Chemicals  Japan MRL  Codex MRL  
Indoxacarb  0.20 0.50 
Zoxamide  1.00 2.00 
Average  0.63  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 9: EGGS, CHI CKEN  
The case of agr icultural product in Eggs, chicken out of total 44 agricultural chemicals with MRL 
standards in three of the agricultural chemicals Japan maintains a higher MRL which is more 
stringent when compared to Codex MRL levels.  
Table 10  Stringent MRL Standards for  Eggs, Chicken  
Agricultural Chemicals  Japan MRL  Codex MRL  
Difenoconazole  0.01 0.03 
Indoxacarb  0.01 0.02 
Oxydemeton -methyl  0.02 0.05 
Average  0.88  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 10: GRAPE, T ABLE  
In the agricultural pro duct of Grape, table of the total 68 agricultural chemicals with MRL 
standards three agricultural chemicals the MRL standards of Japan is seen to be higher or more 
stringent when compared to the international standards (Codex). When compared to the Codex 
standard, Japan maintains five times higher standard for the agricultural chemical Captain in 
Grape, table agricultural product.  
Table 11  Stringent MRL Standards for Grape, Table  
Agricultural Chemicals  Japan MRL  Codex MRL  
Captan  5.00 25.00  
Clofentezine  1.00 2.00 
Triflumizole  2.00 3.00 
Average  0.72  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 11: GUAR  
In the case of agricultural product in Guar out of total 9  agricultural chemicals  with MRL standards  
in five agricultural chemicals  Japan maintains a higher MRL, which is more stringent when 
compared to Codex MRL levels. In the case of agricultural chemicals  Spinosad, WT/TPR/M/351/Add.1  
 
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  Alpha -Cypermethrin and Zeta -Cypermethrin, the MRL standard of Japan is much higher than 
Codex standard.  
Table 12 Stringen t MRL Standards for Guar  
Agricultural Chemicals  Japan MRL  Codex MRL  
Alpha -Cypermethrin  0.05 0.70 
Azoxystrobin  0.50 3.00 
Flubendiamide  1.00 2.00 
Spinosad  0.02 0.30 
Zeta-Cypermethrin  0.05 0.70 
Average  5.97  
Source:  Global MRL Database last accessed on  22.09.2015.  
PRODUCT 12: LENTIL  
The agricultural product Lentil out of the total of 22 agricultural chemicals having MRL standards 
analysed in the case of four agricultural chemicals with MRL standards of Japan is seen to be 
higher or more stringent when c ompared to the international standards (Codex).  
Table 13  Stringent MRL Standards for Lentil  
Agricultural Chemicals  Japan MRL  Codex MRL  
Chlorothalonil  0.20 1.00 
Glyphosate  2.00 5.00 
Paraquat dichloride  0.05 0.50 
Spinosad  0.02 0.30 
Average  2.05  
Sourc e: Global MRL Database last accessed on 22.09.2015.  
PRODUCT 13: MANGO  
The agricultural product Mango with total of 12 agricultural chemicals having MRL standards 
analysed it is found that in two agricultural chemicals the MRL standards of Japan is seen to be 
higher or more stringent when compared to the international standards (Codex). The standard for 
the agricultural chemical Zeta -Cypermethrin is twenty three times higher than the Codex MRL 
standard.  
Table 14 Stringent MRL Standards for Mango  
Agricultural  Chemicals  Japan (MRL)  Codex (MRL)  
Thiabendazole  3.00 5.00 
Zeta-Cypermethrin  0.03 0.70 
Average  2.64  
Source:  Global MRL Database last accessed on 22.09.2015.  
Product 14: Milk  
From a total of 85 agricultural chemicals in Milk, in fifteen agricultural c hemicals, Japan is 
maintaining much higher MRL levels, which are more stringent, when compared to Codex MRL 
levels.  
In case of agricultural chemical Diphenylamine Japan is maintaining 25 times more stringent MRL 
Agricultural Chemical standard than Codex MR L Standard.  
Table 15  Stringent MRL Standards for Milk  
Agricultural Chemicals  Japan MRL  Codex MRL  
Chlorothalonil  0.06 0.07 
Clofentezine  0.01 0.05 
Deltamethrin  0.03 0.05 
Difenoconazole  0.01 0.02 
Dinotefuran  0.05 0.10 
Diphenylamine  0.0004  0.01 
Emamecti n 0.0005  0.002  
Endosulfan  0.004  0.01 
Fenpyroximate  0.01 0.01 
Fluopyram  0.07 0.30 
Hexythiazox  0.02 0.05 
Lambda Cyhalothrin  0.03 0.20 
Tebufenozide  0.02 0.05 WT/TPR/M/351/Add.1  
 
- 187 - 
 
  Agricultural Chemicals  Japan MRL  Codex MRL  
Thiabendazole  0.10 0.20 
Thiacloprid  0.02 0.05 
Average  1.47  
Source:  Global MRL Database las t accessed on 22.09.2015.  
PRODUCT 15: NUT, CAS HEW  
The agricultural product Nut, cashew with total of 35 agricultural chemicals having MRL standards 
analysed it is found that in two of the agricultural chemicals with MRL standards of Japan is seen 
to be hig her or more stringent when compared to the international standards (Codex).  
Table 16  Stringent MRL Standards for Nut, Cashew  
Agricultural Chemicals  Japan MRL  Codex MRL  
Diflubenzuron  0.06 0.20 
Spinosad  0.02 0.07 
Average  0.82  
Source:  Global MRL Databas e last accessed on 22.09.2015.  
PRODUCT 16: NUT, WAL NUT, ENGLISH (PERSIA N) 
The agricultural product Nut, walnut, English (Persian) with total of 44 agricultural chemicals 
having MRL standards analysed in the case of four agricultural chemicals the MRL stand ards of 
Japan is seen to be higher or more stringent when compared to the international standards 
(Codex). In the case of agricultural chemical called as Clofentezine  the MRL standard was 25 times 
higher than the Codex measure.  
Table 17  Stringent MRL Stand ards for Nut, walnut, English (Persian)  
Agricultural Chemicals  Japan MRL  Codex MRL  
Alpha -Cypermethrin  0.03 0.05 
Clofentezine  0.02 0.50 
Diflubenzuron  0.10 0.20 
Zeta-Cypermethrin  0.03 0.05 
Average  1.34  
Source:  Global MRL Database last accessed on 22.1 1.2014.  
PRODUCT 17: ONION, B ULB 
From a total of 38  agricultural chemicals  with MRL standards analysed for Onion, bulb in 3 cases 
Japan is maintaining a higher MRL, which is more stringent when compared to the Codex levels.  
Table 18 Stringent MRL Standards  for Onion, bulb  
Agricultural Chemicals  Japan (MRL)  Codex (MRL)  
Chlorpyrifos  0.05 0.20 
Cyantraniliprole  0.04 0.05 
Imidacloprid  0.07 0.10 
Average  0.81  
Source:  Global MRL Database last accessed on 22.11.2014.  
PRODUCT 18: PEANUT  
The agricultural product  Peanut with total of 35 agricultural chemicals with MRL standards 
analysed it is found that in five agricultural chemicals the MRL standards of Japan is seen to be 
higher or more stringent when compared to the international standards (Codex).  
Table 19  Stringent MRL Standards for Peanut  
Agricultural Chemicals  Japan MRL  Codex MRL  
Chlorothalonil  0.05 0.10 
Diflubenzuron  0.05 0.10 
Fluopyram  0.02 0.03 
Imidacloprid  0.70 1.00 
Zeta-Cypermethrin  0.05 0.10 
Average  0.97  
Source:  Global MRL Database last access ed on 22.09.2015.  WT/TPR/M/351/Add.1  
 
- 188 - 
 
  PRODUCT 19: PEPPER, NON-BELL  
The agricultural product Pepper, non -bell with total of 53 agricultural chemicals with MRL 
standards analysed it is found that in six agricultural chemicals the MRL standards of Japan is seen 
to be higher or m ore stringent when compared to the international standards (Codex). In case of 
agricultural chemical Fenamidone, the MRL standard is very high which was two hundred times 
higher than the Codex MRL standard.  
Table 20  Stringent MRL Standards for Pepper, non -bell 
Agricultural Chemicals  Japan MRL  Codex MRL  
Ametoctradin  0.05 1.50 
Buprofezin  5.00 10.00  
Ethephon  2.00 5.00 
Fenamidone  0.02 4.00 
Myclobutanil  1.00 3.00 
Novaluron  0.05 0.70 
Average  4.94  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 20: RICE  
The agricultural product Rice with total of 30 agricultural chemicals having MRL standards analysed 
it was found that in fifteen agricultural chemicals the MRL standards of Japan is seen to be higher 
or more stringent when compared to the i nternational standards (Codex). Specifically, the case of 
Glyphosate agricultural chemical it is found that the MRL standard is 300 times higher than the 
Codex MRL standard.  
Table 21 Stringent MRL Standards for Rice  
Agricultural Chemicals  Japan MRL  Codex M RL 
Alpha -Cypermethrin  0.90 2.00 
Azoxystrobin  0.20 5.00 
Chlorantraniliprole  0.05 0.40 
Deltamethrin  1.00 2.00 
Dinotefuran  2.00 8.00 
Flutolanil  1.00 2.00 
Glufosinate -ammonium  0.30 0.90 
Glyphosate  0.10 30.00  
Iprodione  3.00 10.00  
Lambda Cyhalothrin  0.50 1.00 
Piperonyl Butoxide  24.00  30.00  
Spinosad  0.10 1.00 
Sulfuryl fluoride  0.04 0.05 
Trifloxystrobin  0.90 5.00 
Zeta-Cypermethrin  0.90 2.00 
Average  12.70   
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 21: SOYBEAN  
The agricultural product Soybean with total of 46 agricultural chemicals having MRL standards 
analysed it is found that in five agricultural chemicals the MRL standards of Japan is seen to be 
higher or more stringent when compared to the international standards (Codex).  
Table 22 Stringent MRL Standards for Soybean  
Agricultural Chemicals  Japan MRL  Codex MRL  
Chlorothalonil  0.20 1.00 
Cyproconazole  0.05 0.07 
Deltamethrin  0.10 1.00 
Diquat dibromide  0.20 0.30 
Paraquat dichloride  0.10 0.50 
Average  1.09  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 22: TEA, LEA VES 
The agricultural product Tea, leaves with total of 4 agricultural chemicals having MRL standards it 
is found that in two agricultural chemicals Japan is seen to be higher or more stringent MRL WT/TPR/M/351/Add.1  
 
- 189 - 
 
  standard when compared to the international standards (Codex). In the case of agricultural 
chemical called Dicofol the level is 13 times above the Codex measure.  
Table 23 Stringent MRL Standards for Tea, leaves  
Agricultural Chemicals  Japan MRL  Codex MRL  
Dicofol  3.00 40.00  
Tolfenpyrad  20.00  30.00  
Average  4.04  
Source:  Global MRL Database last accessed on 22.09.2015.  
PRODUCT 23: WHEAT, G RAIN  
The agricultural product Wheat, grain with total of 50 agricultural chemicals having MRL standards 
it is found that  in nine agricultural chemicals standards of Japan is seen to be higher or more 
stringent when compared to the international standards (Codex).   
Table 24  Stringent MRL Standards for Wheat, grain  
Agricultural Chemicals  Japan MRL  Codex MRL  
2,4-D 0.50 2.00 
Alpha -Cypermethrin  0.20 2.00 
Aminopyralid  0.04 0.10 
Deltamethrin  1.00 2.00 
Glyphosate  5.00 30.00  
MCPA  0.10 0.20 
Piperonyl Butoxide  24.00  30.00  
Trinexapac -ethyl 0.60 3.00 
Zeta-Cypermethrin  0.20 2.00 
Average  1.44  
Source:  Global MRL Database last ac cessed on 22.09.2015.  
Page – 63, Paragraphs – 3.142  
 
Question 17  
Japan is requested to provide documentary proof for restriction based on MRL standards for nearly 
44 % agricultural products for which it has stringent (higher) standards or non -codex MRL 
standards, see figure 1.  
 
RESPONSE  
Please refer to Japan 's responses to Questions 12, 13, 14 and 15.  
 
Question 18  
Japan in also requested to provide the relevant scientific risk assessment, in accordance with the 
WTO SPS Agreement.  
 
RESPONSE  
The MHLW takes appropriate risk management measures, including setting MRLs for agricultural 
chemicals for ensuring food safety on the basis of the scientific evidence (e.g. residue trial data, 
GAP information) and risk assessments conducted by the FSCJ.  
 
Reports of risk  assessments by the FSCJ are available at its website as follows:  
Pesticide: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=001  
Vet drug: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=002  
Feed additive: http://www.fsc.g o.jp/fsciis/evaluationDocument/list?itemCategory=012  
Some agricultural chemicals are under review for revising their MRLs based on the latest scientific 
data, taking into account the latest Codex standards. Reports of their risk assessments will be 
publish ed in the above websites.  
 
Question 19  
The stringency calculated based on average values of variation presented in times. Stringent 
values where observed in agricultural products like: Bean, pinto; Melon, golden pershaw; Melon, 
pineapple and Melon, Santa C laus with 90 MRL on agricultural chemicals each and followed by 
Beet, sugar, top (54); Onion, Beltsville bunching and Onion, fresh at 42; Coriander, leaf (33); Tree 
tomato (31) and Sunberry with 30 MRL standards.  WT/TPR/M/351/Add.1  
 
- 190 - 
 
  RESPONSE  
The Government of Japan takes into  account the Codex standards whenever reviewing MRLs for 
agricultural chemicals, in accordance with Article 3.1 of the WTO SPS Agreement. The Government 
of Japan, when necessary, sets food standards different from Codex standards based on scientific 
eviden ce. For example, more restrictive MRLs of pesticide in some commodities can be established 
to protect consumers ' health, if dietary exposure estimated from national consumption data is 
above health -based guidance value (e.g. ADI, ARfD). This measure is con sistent with Article 3.3 of 
the SPS Agreement.  
 
For some agricultural chemicals, MRLs in certain commodities set by the Government of Japan are 
different from Codex MRLs, due to a difference in residue definition for compliance with the MRL, 
or portion to which MRL is applied between Japan and Codex. Some agricultural chemicals are 
under review for revising their MRLs based on the latest scientific data, taking into account the 
latest Codex standards. Japan continues to make an effort to establish MRLs on t he basis of sound 
science and harmonization with international standards.  
 
Question 20  
Additionally, the authorities state that regarding food safety issues, the Japanese Food Safety 
Commission publishes the result of the risk assessments. India would requ est Japan to share the 
web link for such risk assessment carried out which are compatible with the provisions of SPS 
Agreement.  
 
RESPONSE  
The Food Safety Commission of Japan, FSCJ, publishes such results as risk assessment reports on 
their website. The re ports are available at: http://www.fsc.go.jp/hyouka/index.html . 
FSCJ translates an abstract of the reports into English, and publishes it at the English Website. The 
English translations are available at: 
http://www.fsc.go.jp/english/evaluationreports/eval uationreports_index_e1.html . 
 
Figure 1: Codex Comparison of Japanese MRLs on Agricultural Chemicals.  
 
Source:  Based on Global MRL Database.  
Page – 63, Paragraphs – 3.142  
According to the authorities, SPS measures applied by Japan are based on the relevant  
international standards . Japan provides documentary proof for nearly 790 agricultural chemicals 
in the website listed below (ww.m5.ws001.squarestart.ne.jp).  
However the analysis of agricultural chemicals listed by global MRL database suggests that out of 
the 318 agricultural chemicals 24 percent of agricultural chemical have a higher MRL standards 
and additionally 51 percent of them are not having a Codex equivalent MRL Standards (non 
Codex), see figure 2.  
 WT/TPR/M/351/Add.1  
 
- 191 - 
 
  Figure 2: Japanese MRLs on 318 Agricultural Chem ical  
 
Source:  Based on Global MRL Database.  
Question 21  
Japan is also requested to provide the relevant scientific risk assessment, in accordance with the 
WTO SPS Agreement on 75% agricultural chemicals [Non Codex Standard & Higher than Codex 
Standard].  
 
RESPONSE  
The MHLW takes appropriate risk management measures, including setting MRLs for agricultural 
chemicals in food for ensuring food safety on the basis of the scientific evidence (e.g. residue trial 
data, GAP information), and risk assessments condu cted by the FSCJ.  
Reports of risk assessments by the FSCJ are available at its website as follows:  
Pesticide: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=001  
Vet drug: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=00 2 
Feed additive: http://www.fsc.go.jp/fsciis/evaluationDocument/list?itemCategory=012 . 
Some agricultural chemicals are under review for revising their MRLs, based on the latest scientific 
data, taking into account the latest Codex standards. Reports of the ir risk assessments will be 
published in the above websites.  
 
Question 22  
Out of 238 agricultural chemicals 161 were not addressed by the Codex and it is observed that 
Japan has been using Carfentrazone -ethyl (363 agricultural products); Sethoxydim (273); 
Trifluralin (206); Flonicamid (158); Sulfentrazone (158); Fosetyl -Al (138); Pendimethalin (138); 
Spiromesifen (129); Halosulfuron -methyl (106); S -metolachlor (106) and Flumioxazin with 100 
agricultural products.  
 
RESPONSE  
The MHLW establishes MRLs for agr icultural chemicals on the basis of the scientific evidence (e.g. 
residue trial data, GAP information) and risk assessments conducted by the FSCJ, whether codex 
MRLs are established or not. The MHLW also sets import tolerances for agricultural chemicals, i n 
response to requests from overseas countries, manufacturers or industries to protect consumers ' 
health and ensure fair practices in food trade, since Japan is one of the biggest food -importing 
countries in the world.  
For some agricultural chemicals, prov isional MRLs are established in several commodities. The 
MHLW has been reviewing these provisional MRLs, based on the latest scientific data.  
With regard to the eleven agricultural chemicals, ten substances, except for Sulfentrazone which is 
used as an ag ricultural chemical in overseas countries but not in Japan, are permitted to for use as 
agricultural chemicals in Japan, in accordance with the Agricultural Chemicals Regulation Law. The 
Ministry of Agriculture, Forestry and Fisheries (MAFF) is in charge o f registration and control of 
pesticides.  
It is important to manage risks pertaining to agricultural chemicals by appropriate management 
measures, such as setting usage standards or setting MRLs in food and feed. Japan continues to WT/TPR/M/351/Add.1  
 
- 192 - 
 
  make an effort to establ ish MRLs on the basis of sound science and harmonization with 
international standards.  
 
Question 23  
Japan is requested to provide justification for maintaining such high MRL levels in the eleven 
illustrative lists of agricultural chemicals.  
 
RESPONSE  
The e leven substances are registered as pesticides in Japan or overseas countries, and used in 
accordance with the relevant national legislations.  
The MHLW establishes MRLs for agricultural chemicals in food on the basis of the scientific 
evidence (e.g. residu e trial data, GAP information) and risk assessments conducted by the FSCJ, 
whether codex MRLs are established or not. The MHLW also sets import tolerances for agricultural 
chemicals in food, in response to requests from overseas countries, manufacturers, o r industries, 
to protect consumers ' health and ensure fair practices in food trade, since Japan is one of the 
biggest food -importing countries in the world.  
For some agricultural chemicals, provisional MRLs are established in several commodities. The 
MHLW has been reviewing these provisional MRLs based on the latest scientific data.  
It is important to manage risks pertaining to agricultural chemicals by appropriate management 
measures, such as setting usage standards or setting MRLs in food and feed. Japan  continues to 
make an effort to establish MRLs on the basis of sound science and harmonize with international 
standards  
 
Question 24  
Japan is also requested to provide justification of using agricultural chemicals not harmonised by 
the Codex as internation al standard in its domestic MRL standards – 161 agricultural chemicals.  
 
RESPONSE  
Please refer to Japan 's responses to Questions 12, 13 and 22.  
 
Page – 73, Paragraph – 3.174  
With regard to geographical indications (GIs), the Act on Protection of the Names of Specific 
Agricultural, Forestry, and Fishery Products and Foodstuffs entered into force in 2015.  
 
Question 25  
What are the current measures in place for protection of handicrafts and products other than 
agricultural, forestry and fishery products and f oodstuffs, which are specific to a geographical 
region?  
Has there been any discussion on extending GI protection to products other than agricultural, 
forestry and fishery products and foodstuffs?  
 
RESPONSE  
The protection based on the Article 22.2 of the TR IPS Agreement has been provided by the Unfair 
Competition Prevention Act for all the products in Japan. Additionally, agricultural, forestry and 
fishery products and foodstuffs are given higher protection by the Act on Protection of the Names 
of Specific A gricultural, Forestry and fishery Products and Foodstuffs.  
 
Can a GI once granted protection in Japan become generic even when it continues to be 
protected as a GI in the country of origin?  
 
RESPONSE  
The protection based on the Article 22.2 of the TRIPS Ag reement has been provided by the Unfair 
Competition Prevention Act for all the products in Japan. Additionally, agricultural, forestry and 
fishery products and foodstuffs are given higher protection by the Act on Protection of the Names 
of Specific Agricul tural, Forestry and fishery Products and Foodstuffs.  
 
Page – 78, Paragraph –3.178  
 
Question 26  
In the context of Article 66 of the TRIPS Agreement, what are the incentives provided to 
enterprises and institutions in the Japan for promoting and encouraging technology transfer to 
least developed country members?  WT/TPR/M/351/Add.1  
 
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  RESPONSE  
Regarding technology transfer to LDCs, it is expected that utilizing a public fund could incentivises 
enterprises and institutions to introduce their technologies to LDCs and reduce risks and  costs of 
their business activities in those countries.  
Since there are various types of technology transfer, it is difficult to simply calculate and assess 
the extent of technology transfer based on monetary amounts.  
 
What has been the extent of technolo gy transfer in value term to the LDCs in 2014, 2015 and 
2016?  
 
Page – 79, Paragraph – 3.180  
 
Question 27  
In Japan, is the post marketing surveillance period calculated from the date of first registration 
anywhere in the world or from the date of registrati on in Japan?  
 
Is there a specific period from the date of first registration within which protection must be sought 
to enable post marketing surveillance?  
 
What is the process followed in case of agrochemical substances? What are the modalities that 
must b e completed by generic suppliers of agrochemical substance?  
 
RESPONSE  
The post marketing surveillance period, officially named in Japan as "the reexamination period", 
starts from the date of marketing approval in Japan.  
The re -examination period for a new chemical entity is eight years in principle.  
 
Agricultural chemicals are not subject to re -examination in Japan.  
In case of agricultural chemicals, data protection period is 15 years. Certain data submitted for the 
registration of the original products can  be used for the registration of generic agricultural 
chemicals after the period of 15 years from the first registration of the original product.  
 
Question 28  
What is the difference between market exclusivity and the post marketing surveillance system?  
 
RESPONSE  
We understand "market exclusivity" as the data protection period, and the Post Marketing 
Surveillance is officially named as "the re -examination" in Japan. During re -examination period, 
any applicant for the same drug as an original drug is required  to submit whole necessary data for 
new drug application, and therefore, a generic application for the same drug is not approved. As a 
result, the re -examination period functions as the market exclusivity.  
 
Question 29  
Can validity of market exclusivity ou tlast the post marketing surveillance period?  
 
RESPONSE  
As we answered in Q28, the re -examination period functions as the market exclusivity. Therefore, 
the market exclusivity cannot outlast the re -examination period.  
 
Question 30  
Can the post marketing su rveillance period outlast the patent term for a product?  
 
RESPONSE  
It can happen but it depends on each product, because the re-examination period for a product is 
independent from the patent term of the corresponding product.  
 
Question 31  
What is the unde rlying basis for market exclusivity?  
 
Can Japan provide information about databases which contain the patent expiration date and the 
post marketing surveillance expiration date for pharmaceutical and pesticide products (similar to WT/TPR/M/351/Add.1  
 
- 194 - 
 
  the US FDA's orange book  which contains patent expiration date and date of market exclusivity 
expiration of pharmaceutical products) . 
 
RESPONSE  
As the answer to Q28, the re -examination period functions as the market exclusivity. The re -
examination period is provided for the reexa mination on the safety and efficacy of new drugs.  
The Government of Japan do not have database which contains information on expiration dates of 
the re -examination periods for pharmaceuticals and pesticides. Expiration dates of patents 
registered in Japan can be found in the following link (Japanese);  
https://www.j -platpat.inpit.go.jp/web/all/top/BTmTopPage.  
 
Page – 79, Paragraph –3.181  
 
Question 32  
How does the JPO examine patent applications for inventions that utilize genetic resources (having 
a traditio nal knowledge base)? What are the criteria for assessment of novelty and inventive step 
in such inventions?  
 
RESPONSE  
In case any specific issue should arise where patents and other intellectual property rights may 
have an effect on the implementation of t he Convention on Biological Diversity, Japan 's national 
focal point of the Convention will convey such information to a relevant authority(s) within the 
government for its/their consideration in accordance with relevant national laws.  
 
Japan has access to the TKDL Database since 2011. What has been the impact of this database in 
improving the quality of patent products? Are oral submissions in respect of novelty, claims made 
by the applicant accepted from third parties?  
 
RESPONSE  
JPO does not have specific guidelines for patent applications related to genetic resources. For 
criteria for assessment of novelty and inventive step, JPO examines these patent applications 
based on the same criteria as on those of other fields.  
The JPO patent examiners can access t o the TKDL Database. However, JPO has never been 
reported that the JPO patent examiners found the prior arts from the TKDL Database. Therefore, 
JPO cannot clearly assess the TKDL Database. Third parties are able to provide information only in 
writing, not by oral, regarding novelty etc., of patent applications. Oral submissions are not being 
accepted.  
 
Japan is a signatory of the Convention on Biological Diversity, Article 16.5 of which talks about the 
need to ensure compatibility between the Convention and  the national IP laws of countries. In the 
absence of any linkage between Japan's IP laws and biodiversity laws, how does Japan comply 
with its commitment under this Article?  
 
Page – 79, Paragraph – 3.184  
 
Question 33  
What is the procedure for issue of the se compulsory/mandatory licenses? Do they apply 
irrespective of the field of technology?  
 
How many applications for compulsory licences have been filed in Japan, and in which field of 
technology?  
 
RESPONSE  
Details on the procedure are provided from the Ar ticle 83 to 93 of the Patent Act.  
A party may request the licenses when consultations with patent right holder do not result in any 
licenses.  
If a person fails to obtain a license from related patent holder through consultation which is 
required, such per son can request the Minister of Economy, Trade and Industry or the 
Commissioner of Japan Patent Office to render an award whether to grant non -exclusive license 
taking into account advices from a council.  
This process is available for all fields of techno logy. WT/TPR/M/351/Add.1  
 
- 195 - 
 
  24 requests including invention, utility model and industrial design have been filed so far, but 
there is no award in this regard. These requests vary in technical fields  
 
Page -79, Paragraph -3.185  
 
Question 34  
What is the time taken for a utility pat ent to get granted?  How many suits have been filed till date 
for infringement of utility patents?  
 
 
RESPONSE  
Patents are granted in about 15 months * on average from filing a request for examination 
(excluding utility models) . The number of lawsuit related patents which includes patent 
infringement is total about 1600 cases between 2007 and 2016.  
*Excluding some cases where the JPO requests an applicant to respond to the second notification 
of reasons for refusal and where the applicant performs procedures t hey are allowed to use, such 
as requests for extension of the period of response and for an accelerated examination  
 
 
Page – 80, Paragraph – 3.189  
 
Question 35  
Does Japan provide protection to olfactory trademarks? How many such applications were received 
in 2016?  
 
RESPONSE  
The Government of Japan does not provide protection to olfactory trademarks. Thus, Japan Patent 
Office does not receive any application for registration of olfactory trademarks.  
 
Page – 84, Paragraph –3.207  
 
Question 36  
Please indicate t he number of recordals made with the customs authorities in patents and designs 
in the last three years.  Also, indicate the number of infringement cases reported by the authorities 
as a consequence of border measures covering importation and exportation in  the last three years.  
 
 
RESPONSE  
The number of applications for import suspension accepted by Japan Customs is as follows. The 
number in each box indicates the number of valid application at the end of each year. For more 
details, please refer to the webs ite below*(page7).  
 
Year (CY)   Patent  Design  
2015     21     87 
2014     20     82 
2013     21     77 
 
The number of infringement  cases identified as a result of border measures by Japan Customs is 
as follows. For more details, please refer to the website  below* (pages 2 and 9).  
 
 
Page – 108, 109, Paragraph – 4.81, 4.85 -4.91 
 
Question 37  
Japan is requested to inform how the discriminatory amendments specific to foreign banks are 
compatible with its GATS National Treatment commitments in Financial Services.  
 
RESPONSE  
The partial relaxation of requirements with respect to agency services and intermediary services 
(paragraph 4.85) is to cover a domestic bank conducting business as an agent or intermediary of a 
foreign bank outside of Japan. The revised licensi ng standards (paragraphs 4.87 and 4.88) are 
equivalent to the standards for domestic banks. The information obligation newly imposed WT/TPR/M/351/Add.1  
 
- 196 - 
 
  (paragraph 4.89) is based on the fact that enrollment of foreign bank branches are not enrolled 
into the deposit insurance system, and it is necessary to specify information about the risks for 
depositors in the unlikely event that a foreign bank fails. The obligation to maintain assets in Japan 
(paragraph 4.90) is equivalent to the obligation for domestic banks. The Act on Sp ecial Measures 
for Reorganization (paragraph 4.91) has been applied to domestic banks, and the revision in 2013 
extended the scope of application to foreign bank branches.  
Therefore, the amendments described in paragraphs 4.85 to 4.91 are consistent with t he GATS 
National Treatment commitment  
 
Page – 112, Paragraph –4.96 
Paragraph –4.96 
 
Question 38  
Japan is requested to provide the details of the unbundling obligations. Japan is also requested to 
inform if there exists any limitations pertaining to data lo calization, server localization and access 
to source code.  
 
 
RESPONSE  
Under the Telecommunications Business Act (Article 34), facilities of MNOs that have more than 
10% share of terminals are designated as "Category 2 Designated Facilities" (Cat.2 faciliti es). 
MNOs that have Cat.2 facilities (NTT DOCOMO, KDDI, Okinawa Cellular Telephone Company (a 
local subsidiary company of KDDI) and SoftBank) are obliged to file with MIC, and publish their 
interconnection charges, terms and conditions. In May 2015, the Ac t was amended to add several 
obligations regarding interconnection with telecommunication carriers, including MVNOs, such as 
an obligation to specify interconnection charges for functions specified by an MIC ordinance. In the 
Ordinance, functions for voice  and SMS interconnection, and a function for MVNO to utilize MNO's 
facility for data communications, are listed (to be unbundled).  
 
 
Page – 116, Paragraph –4.107  
 
Question 39  
Japan is requested to provide the details of the subsidy schemes/programs availab le for the Audio -
Visual Services. Which of these schemes/programs are available only to domestic companies and 
not to foreign companies?  
 
RESPONSE  
With regard to the subsidies by local film commissions at issue, since, in many cases, they are 
administered by respective non -governmental organizations, the Government of Japan does not 
have information regarding such schemes or programs comprehensively.  
 
Page – 122, Paragraph –4.133  
 
Question 40  
Japan is requested to provide the details of the process and cond itions for recognizing foreign 
medical degrees.  
 
RESPONSE  
Advanced clinical training is a system that aims to contribute to the progress of international 
exchange in the medical industry and the improvement of medical levels of developing countries. 
This s ystem specially permits foreign medical practitioners visiting Japan for medical training to 
perform medical treatment on this training in order to completely achieve its objective.  
Foreign medical practitioners are permitted to perform medical treatment s ervices under the 
tuition and supervision of clinical instructors at hospitals or clinics designated by the Minister of 
Health, Labour and Welfare.  
*Foreign medical practitioners: Physicians, Dentists, Midwives, Nurses, Medical Radiology 
Technicians, Denta l Technicians, Clinical Laboratory Technicians, Physical Therapists, Occupational 
Therapists, Orthoptists, Clinical Engineers, Prosthetists, Speech Therapists, Emergency Life -saving 
Technicians.  
"Medical Services" is the status of residence regarding medic al occupations that must not be 
undertaken without Japanese legal qualifications. In particular, the status of residence of "Medical WT/TPR/M/351/Add.1  
 
- 197 - 
 
  Services" is granted to foreign nationals whose activities are to engage in medical treatment 
services, with the legal qual ifications as physicians, dentists, pharmacists, public health nurses, 
midwives, nurses, assistant nurses, dental technicians (shikaeiseishi), medical radiology 
technicians, physical therapists (rigakuryouhoushi), occupational therapists (sagyouryouhoushi) , 
orthoptists (shinoukunrenshi), clinical laboratory technicians (rinshoukougakugishi), or prosthetists 
(gishisougushi).  
On the other hand, advanced clinical training (rinshoushuren), in which foreign medical 
practitioners or foreign dental practitioners with foreign qualifications equivalent to Japanese 
physicians or dentists engage with permission from the Minister of Health, Labour and Welfare of 
Japan, does not fall under the category of the status of residence of "Medical Services."  
 
 
Page – 129, Para graph –4.151  
 
Question 41  
Could Japan inform the details of the standards fixed by the prefecture government for clinics?  
 
When establishing a clinic, he or she shall notify the prefectural governor of the area in which the 
clinic is located, within ten da ys of its establishment. The essential items include the name and 
address of the establisher, the name of the clinic, the location of the clinic and so on.  
 
Questions on Government Report (WT/TPR/G/351)  
Page – 11, Paragraphs – 2.31 & 2.32  
 
Question  42 
Japan is requested to provide justification for not having opened up its market by addressing the 
non-ad valorem  tariffs to ad valorem  equivalents (AVEs) in agricultural products present at the 
border and the standards and technical regulations (SPS and TBT Me asures) harmonising with the 
international standards present behind the border.  
 
RESPONSE  
Japan sets an appropriate tariff on each agricultural product, which is consistent with t he WTO 
Agreement and it is irrelevant that Japan has not opened up its market . 
SPS measures and TBT measures of Japan are, in general, based on relevant international 
standards, wherever possible, in accordance with SPS Agreement and TBT Agreement. 
Furthermore, with a view to harmonizing with relevant international standards, Japan  reviews its 
measures where necessary, and will continue to proceed with such efforts.  
Table 1 Impact of FTA on Japans trade with India  
Years  No. of Chapters Traded Bilaterally  
Gross Exports  Gross Imports  
Agri.& 
Allied  Non-
Agri.  No. of Exp. 
Chapters  Agri.& 
Allied  Non-
Agri.  No. of Imp. 
Chapters  
2011 15 68 83 22 69 91 
2012 19 70 89 22 71 93 
2013 20 66 86 23 71 94 
2014 19 71 90 22 69 91 
2015 16 70 86 21 69 90 
2016 17 70 87 22 67 89 
Post FTA increase/decrease  2 2 4 0 -2 -2 
Source:  WITS Comtrade.  
Question 43  
Table 1, highlights the bilateral trade between India and Japan. In terms of number of chapters 
bilaterally traded, Japan is seen be gaining two chapters each in agriculture and allied (agri. & 
allied) and non -agriculture (non -agri.) sectors – by exporting more than the beginning of India -
Japan CEPA in 2011. While in the case of Japan's imports, India is seen to have conceded two 
chapters in non -agricultural sector. In the agricultural and allied sector the status remained 
unchanged, thereby sugges ting Japan market have further closed for Indian exporters.  
 
RESPONSE  
Based on the Japan -India CEPA, Japan and India have liberalized trade and investment in a wide 
range of areas, through such measures as eliminating or reducing custom duties on various g oods, WT/TPR/M/351/Add.1  
 
- 198 - 
 
  and ensuring both transparency and facilitation in customs procedures. Thus, both export volume 
and import volume have marked increases compared to the period prior to the entry into force of 
the Japan -India CEPA in 2011. It is clear that trade relat ions between Japan and India have been 
improving since 2011.  
 
 
20. THAILAND  
Report by the WTO Secretariat  
 
Item/Page  Issue  Question  
23/11  Medical 
profession  Can you explain the reasons why there is only one foreign -owned clinic 
operating in Japan? Is it due to any technical barrier? If yes, does Japan 
consider adjusting or removing the barrier?  
RESPONSE  
The Government of Japan is not aware of whether "only one foreign -owned 
clinic currently operates in Japan" or not. At least, the laws and regulations 
of Japan do not set any limitation on the participation of foreign capital  
3.86/49  Subsidies and 
other 
assistance 
programmes  What factors are used to determine whether and when to initiate a new 
round of the programme? How long will this programme continue for?  
RESPONSE  
The amount of budget money remaining and the processing time to handle 
a new round of the programme are the main factors. This program will run 
until the end of March, 2021.  
3.3.6/63  
 
 
 
 Standards and 
other technical 
requirements  
 
 Where to  find the list of 1 foreign registered conformity assessment body and 7 
domestic registered conformity assessment bodies regarding the Consumer 
Product Safety Act and designated 24 inspection bodies by METI in refer to 
3.135 and 3.137 ?  
RESPONSE  
The follo wing are registered conformity assessment bodies (designated 
inspection bodies), regarding the Consumer Product Safety Act, the 
Electrical Appliances and Materials Safety Act, the Act on the Securing of 
Safety and the Optimization of Transaction of Liquefi ed Petroleum Gas, and 
the Gas Business Act.  
 
Consumer 
Product Safety 
Act Japan Recreation Miscellaneous Goods Safety 
Laboratory (MGSL)  
http://www.mgsl.or.jp/english/tabid/66/Default.aspx  
Japan Quality Assurance Organization (JQA)  
https://www.jqa.jp/english / 
UL japan,inc  
http://japan.ul.com/  
Japan Electrical Safety and Environment Technology 
Laboratories (JET)  
http://www.jet.or.jp/en/  
The Japan Gas Appliances Inspection Association (JIA)  
http://www.jia -page.or.jp/english/index.html  
Japan Heating Appliances I nspection Association (JHIA)  
http://www.jhia.or.jp/english/index -e.htm  
Bureau Veritas Japan co.ltd (BV)  
http://www.bvjc.com/  
Ningbo Joysun Testing Sevice Company (JS)  
http://www.psc -china.cn/  
Electrical 
Appliances and 
Materials 
Safety Act  Japan Electrical  Safety and Environment Technology 
Laboratories (JET)  
http://www.jet.or.jp/en/  
Japan Quality Assurance Organization (JQA)  
https://www.jqa.jp/english/  
Japan Electric Cable Technology Center (JCT)  
http://www.jectec.or.jp/english02/introducing.htm  
TÜV Rheinla nd Japan Ltd.  
http://www.tuv.com/en/japan/home.jsp  
UL Japan Inc.  WT/TPR/M/351/Add.1  
 
- 199 - 
 
  Item/Page  Issue  Question  
http://japan.ul.com/  
Intertek Japan K.K.  
http://ew.intertek -jpn.com/  
TÜV Rheinland LGA Products GmbH (TÜV LGA)  
http://www.tuv.com/de/deutschland/home.jsp  
TÜV Rheinland Taiwan Ltd. (TÜV RT)  
http://www.tuv.com/en/greater_china/home.jsp  
TÜV Rheinland Hong Kong Ltd. (TÜV RHK)  
http://www.tuv.com/en/greater_china/home.jsp  
China Quality Certification Centre (CQC)  
http://www.cqc.com.cn/www/english/  
Electronics Testing Center, Taiwan (ETC)  
http://www.e tc.org.tw/en -us/default.aspx  
UL LLC (UL -US) 
http://www.ul.com/  
Act on the 
Securing of 
Safety and the 
Optimization of 
Transaction of 
Liquefied 
Petroleum Gas  Japan Gas Appliances Inspection Association (JIA)  
http://www.jia -page.or.jp/  
Japan L.P. Gas Instrum ent Inspection Association (LIA)  
http://www.lia.or.jp/  
Gas Business 
Act The High Pressure Gas Safety Institute of Japan  
http://www.khk.or.jp/index.html  
Japan Gas Appliances Inspection Association (JIA)  
http://www.jia -page.or.jp/  
 
4.1.2/91 -92 Agricultura l 
policies  
 Pursuant to paragraph 4.12, the report referred to the price stabilization 
policy that applies to some agricultural products, it also specifically stated 
that the policy is not extended to pork. Could you elaborate on the method 
of the calculat ion with some example and also the reason why the policy 
does not apply to pork?  
Please give more details on the measure that could prevent the raw 
material for foodstuffs diverted to human consumption as specify in 
paragraph 4.36.  
RESPONSE  
i) para 4.12  
1. With regard to calves, under the producer price stabilization policy, 
the difference between the guaranteed price and the actual average price is 
paid to calf proceduces as a subsidy when the actual average prices fall 
below the guaranteed price. The guaran teed price is calculated for each 
cattle breed every year as the price ensuring the reproduction of calves, 
based on sales price of calves before the tariffication of beef import in 1991, 
taking into consideration changes in the economic situation thereaft er, to 
ease the impact of the tariffication.  
2. With regard to vegetables, when the average selling price falls below 
the reference price, the difference between the reference price and the 
average selling price is subsidized by the Government of Japan. The 
reference price is calculated for each target vegetable, based on market 
prices in the past several years, and it is revised almost every 3 years.  
3. With regard to fruits, when the wholesale price falls below the 
reference price, expenses for processing fresh  fruits to juice, and so on, are 
subsidized by the Government of Japan. The reference price is calculated 
based on the normal wholesale price, and it is revised every year.  
4. With regard to pork, the Government of Japan implements the 
income stabilization  program for the pig sector (MARUKIN program). The 
MARUKIN program covers up to 80% of the gap between average 
production cost and average carcass price, through the fund, which is 
mutually contributed to by producers and government.  
 
ii) para 4.36  
With re gard to the raw materials of the compound feeds such as maize, 
Japanese the Government of Japan makes it obligatory to mix them with 
other raw materials or to deform by heat and pressure at the approved feed 
mills. Therefore, the raw material for feedstuff s is prevented to convert to 
human consumption.  
4.83/108  Financial 
Services  According to paragraph 4.83. under the WT/TPR/S/351 report page no.108, 
the second amendment relates to the tightening of large exposure limits. 
Pursuant to the Basel core princi ples and following the Financial Sector 
Assessment Plan (FSAP) of the IMF. How does Japan classify "large WT/TPR/M/351/Add.1  
 
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  Item/Page  Issue  Question  
exposure limits" Does Japan use any definition as a reference?  
RESPONSE  
From the perspective of ensuring diversification of risks associated with 
bank assets, large exposure rules set an upper limit on the total amount of 
credit exposures to a single counterparty, or a group of connected 
counterparties. The Financial Services Agency refers to the following 
definition set out in the Core Principles for E ffective Banking Supervision:  
"twenty -five per cent of a bank's capital is the limit for an individual large 
exposure to a private sector non -bank counterparty, or a group of 
connected counterparties".  
4.160/131  Social Services  According to paragraph 4.16 0. under the WT/TPR/S/351 report page no. 
131, the Japanese government has recently taken measures to encourage 
the construction of new facilities and the renovation and extension of 
retirement homes. We would like to seek clarification about what these 
measures are.  
RESPONSE  
The Government of Japan has recently taken measures to encourage the 
construction of new facilities and the renovation and extension of existing 
ones. Retirement housing is one of those that can benefit from the Fund for 
Ensuring Regi onal Access to Medical Care and Long -Term Care, established 
in each prefecture by the "Act on Ensuring Regional Access to Medical Care 
and Long -Term Care" (25 June 2014, amending Law No. 64 of 1988). The 
Fund is financed by the central Government (two thir ds) and each 
prefectural Government (one third), using tax revenues including those 
gained by consumption tax. More concretely, projects such as (1) support 
for the building cost of retirement homes used for the community -based 
service, (2) support for the  cost of equipment needed for opening 
retirement homes, and (3) support for the expenses of renovating existing 
intensive care homes for the elderly to privacy -conscious ones can benefit 
from the Fund.  
4.1.2.3.2/94  Rice According to page 94, no. 4.1.2.3.2  Rice, sub -no. 4.29 and sub -no. 4.30, 
Thailand would like to inquire the Government of Japan whether the 
termination of production quotas for rice by 2018 will affect the allocation of 
rice import quotas annually from foreign countries or not.  
RESPONSE  
The rice policy reform regarding production quotas for rice, aimed at 
enabling farmers to produce their rice in response to demand without 
relying on government quota allocation by 2018, is a reform of domestic 
policy. Therefore, it does not affect the admini stration of rice imports.   
2.4/25  Investment 
Regime  
 
 The report stated that Japan maintains the policy to attract FDI in order to 
increase amount of inward investment. This has been seen through the 
numerous efforts essentially aim at improving the coun try's business 
environment and eradicating what hinders foreign investors' entrance.  
However, is there any adoption of investment incentives scheme of granting 
tax holidays for foreign investors as a mean to promote FDI? Also kindly 
explain in details the investment incentives / other beneficial factors for 
investing in ten national strategic special zones.  
RESPONSE  
① In Japan, there are no tax exemptions as a mean to promote FDI.  
 
② The National Strategic Special Zones grants special provisions in a 
variety of fields (78 total reforms have ever been realized by the NSSZs as 
of February 15, 2017, including the nationw ide measures) with the aim of 
developing the easiest environment for doing business in the world to 
enable private sector to fully show their abilities which link to economic 
growth. In addition to regulatory reforms, tax reliefs and interest subsidies 
are also introduced in the NSSZs.  
The examples are as follows: Firstly, the Tokyo One -Stop Business 
Establishment Center was established to promote foreign -owned and 
domestic venture corporations; the Center offers comprehensive support for 
procedures related  to corporate foundation. Secondly, the current 
requirements for the Investory and Business Manager visa category 
(namely, the need to either employ at least two full -time employees or 
invest a minimum amount of five million yen) can be relaxed in the NSSZ s 
provided that an agreement has been reached between the national 
government, local authorities and the private sector.  
4.1.2.2/92 -
93 Agricultural 
policies  Could Japan inform the applied rate in case of volume or price -based SSG in 
FY2014 and FY2015, Did  the calculation of such applied rate be in line with 
Article 5 of  Agreement on Agriculture?  WT/TPR/M/351/Add.1  
 
- 201 - 
 
  Item/Page  Issue  Question  
RESPONSE  
The applied rate on volume and price -based SSG is provided in Article 7 -3 
and Article 7 -4 of the Temporary Tariff Measures Act respectively.  
Please refer  to the following URL (only in Japanese):  
(http://law.e -gov.go.jp/htmldata/S35/S35HO036.html)  
 The calculation of the applied rate is in line with Article 5 of the Agreement 
of Agriculture.  
Could Japan provide more information about the coverage condition of 
Export insurances? Does NEXI applied credit rate and credit term for the 
exported agricultural goods in the commercial practice?  
RESPONSE  
Export credit insurance covers losses caused by political risk events 
(currency regulation, a war, terrorism in an export destination country etc) 
and commercial risk events (non -payment or bankruptcy of a buyer 
company etc).  
Please see NEXI's  website ：http://nexi.go.jp/en/products/types/index.html  
NEXI has country risk ratings and credit ratings for foreign buyer 
companies. NEXI applies these ratings to each transaction for insurance 
premium calculation purposes. There is no difference in terms  of 
underwriting procedure between agricultural export and other goods export.  
Could Japan provide more information on example of products and the 
eligible recipients in this scheme and also the determination of purchasing 
and selling price comparing with market price? Do these practices conform 
with ANNEX 2 of  Agreement on Agriculture?  
RESPONSE  
NEXI Insurance programs are not recognized as "Domestic Support" under 
the Agreement on Agriculture. NEXI insurance covers losses caused by 
nonpayment of foreign im porters of Japanese agricultural products, such as 
rice and fruits, and therefore the beneficiaries of NEXI Insurance, and the 
eligible recipients of insurance proceeds, are Japanese exporters. NEXI 
export credit insurance program is not a scheme which dec ides the 
purchasing and selling price of agricultural products.  
4.1.2.3.1/93  General 
support 
programmes  If farmers get benefit from higher market prices of the agricultural product 
in this insurance scheme, does Japan have any consideration to shift the 
responsibility of paying insurance premiums to the farmers or any other 
way to reduce the subsidy on these premiums?  
RESPONSE  
The Agricultural Disaster Compensation Program is an insurance system in 
which farmers subscribe by paying a certain premium prescr ibed for each 
type of agricultural crops, and mutual aid money is paid for a certain 
percentage of the decrease in yield, when the yield of crops decreases due 
to natural disasters.  Also, the Government of Japan supplements mutual aid 
premiums by 50%.  
 Even if farmers get benefits from higher market prices of the agricultural 
product, the Government of Japan does not shift the responsibility of paying 
mutual aid premiums to the farmers, and does not reduce subsidies.  
4.1.2.3.2/94  
 Rice Since Japan will pha se out production quotas for rice by 2018, has the 
direct payment be changed? And how?  
RESPONSE  
The direct payment for table rice will eventually be abolished in 2018.  
4.1.2.3.4/95  
 Fruits  and 
vegetables  Could you please elaborate on how to ensure that fi nancial assistance for 
converting production as in this policy for Fruit Industry Promotion does not 
lead to an overly expansion of production of valuable fruits?  
RESPONSE  
Financial assistance for converting fruits production aims to promote the 
planned pr oduction of valuable fruits, in order to respond to the 
consumption. Since the trend of domestic fruit consumption and production 
is decreasing in Japan, Japan does not consider that production of specific 
valuable items or varieties will expand excessivel y. 
4.1.2.3.6/96  
 Livestock 
products  Does the supplement paid by the fund in the Feed Price Stabilization 
Programme is calculated as the domestic support?  
RESPONSE  
The supplementary fund, which manage extreme spikes of feed price, was 
founded by the Gover nment and private compound feed companies, and 
public contribution is calculated as domestic support.  
4.1.2.3.7 /96  
 Dairy  Does the subsidy from the farm business stabilization fund which compensates 
producers of milk for processing whenever prices fall b elow the average for the 
previous three year is calculated as the domestic support?  
 WT/TPR/M/351/Add.1  
 
- 202 - 
 
  Item/Page  Issue  Question  
RESPONSE  
The fund was founded by the Government and milk producers, and public 
contribution is calculated as domestic support  
 
Report by Japan  
 
Item/Page  Issue  Question  
4.4/16  
 
 
 
 Agricultural 
Reform  
 According to paragraph 4.14 where the report citing "the Plan for Empowering 
Export on Agriculture, Forestry and Fisheries", is it possible to share the 
information of the plan and details of any subsidy that may be included ? 
RESPONSE  
The new plan was established to support agricultural, forestry, fishery and food 
businesses in several measures, for examples:  
- to consolidate overseas market information and provide them through the 
Japan External Trade Organization (JETRO)  
- to enhance the consulting and advice systems of JETRO and MAFF  
- to implement effective promotion events in collaboration with chefs and 
overseas Japanese restaurants  
- to improve the domestic export -related procedures, such as the issuance 
procedures for various certificates  
- to establish a system to guarantee the quality and special features of 
Japanese products to overseas consumers and businesses.  
In addition to the plan, country/region -specific and products specific export 
strategies were provided for  private businesses to proceed their exports.  
And MAFF has made financial support for JETRO which is the official agency 
responsible for promoting export and the main implementation body of 
promotion measures included in the new plan.  
 
4.5/17  Competition 
Policy  Thailand would like to know what kind of business sectors that violated cartel 
and bid -rigging in the Antimonopoly Act (AMA) during 2014 -2015?  
RESPONSE  
During 2014 -2015, the JFTC took legal measures in following business sectors: 
agricultural equipm ent works, electrical engineering works, public engineering 
works, paving works, voluntary flu shots service, international ocean shipping 
services for automobiles, corrugated board manufacturing, and steel ball 
manufacturing  
 
 
21. PERU  
Sobre la base de l o señalado en el documento WT/TPR/G/351 del 18 de enero de 2017, el Perú 
tiene las siguientes preguntas:  
 
 
Pregunta 1. - 
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requis itos aduaneros  
3.1.1.1 Transparencia y marco jurídico  
Párrafo 3.6. El 1º de junio de 2015 el Japón depositó en la OMC su instrumento de aceptación del 
Acuerdo sobre Facilitación del Comercio (AFC). El 6 de abril de 2015, estableció un comité nacional 
de fa cilitación del comercio, denominado Conferencia de Enlace sobre Facilitación del Comercio 
(LCTF), como un foro de intercambio de información entre los ministerios y los organismos 
pertinentes, representados a nivel de directores generales.  
 
Pregunta 1  
 ¿Qué institución preside la Conferencia de Enlace sobre Facilitación del Comercio (LCTF)? 
Asimismo, ¿está este comité representado únicamente por el sector público? Por último, ¿cuál es 
la periodicidad con la que el comité se reúne?  WT/TPR/M/351/Add.1  
 
- 203 - 
 
  RESPONSE  
"Liaison Conferen ce on Trade Facilitation (LCTF)" does not have a chair -person, but the Ministry of 
Foreign Affairs administrates LCTF, if necessary, in cooperation with other ministries concerned. 
Only representatives of the ministries concerned participate in the LCTF. T he LCTF was set up in 
April 2015, but the meeting has not been held so far.  
 
Pregunta 2. - 
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.5 Prohibiciones, restricciones, licencias y contingente s de importación  
Párrafo 3.34  El Japón aplica restricciones cuantitativas a las importaciones (contingentes de 
importación); según las autoridades, los contingentes se ajustan a los Acuerdos de la OMC. Entre 
los productos sujetos a contingentes de importac ión (sin variaciones desde 2007), figuran 
determinados productos de la pesca y las sustancias controladas que se enumeran en el Protocolo 
de Montreal relativo a las Sustancias que Agotan la Capa de Ozono.  
 
Pregunta 2  
 ¿Podría Japón explicar el sustento y l os detalles del contingente de importación a determinados 
productos pesqueros?  
 
RESPONSE  
Quantitative import restrictions (import quotas) play an important role in the conservation and 
management of fishery resources in waters adjacent to Japan. This syste m is consistent with the 
1994 GATT (Articles XI 2(c) and XX (g)), and was notified to the WTO. The Government of Japan 
will continue to implement this system appropriately.  The import quota system is fully described, 
in Japanese, in the Official Bulletin o f Economy, Trade and Industry, METI website etc. Outlines of 
the system are described, in English, in the WTO document G/LIC/N/3/JPN/15.  
 
Pregunta 3. - 
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importacione s 
3.1.6 Medidas antidumping, compensatorias y de salvaguardia  
Párrafo 3.41. El 8 de abril de 2016 se promulgaron las versiones revisadas de las órdenes del 
Consejo de Ministros relativas a los derechos antidumping y a los derechos compensatorios, que 
entra ron en vigor el 1º de mayo de 2016. Se suavizaron los requisitos que deben cumplir a las 
asociaciones para presentar una solicitud en nombre de una rama de producción nacional para la 
imposición de un derecho antidumping o compensatorio. Anteriormente, las  asociaciones solo 
tenían derecho a presentar una solicitud de ese tipo si la mayoría de sus miembros eran 
productores nacionales de productos similares. A raíz de estas revisiones, pueden presentar una 
solicitud las asociaciones que estén compuestas como mínimo por dos productores nacionales de 
productos similares.  
 
Pregunta 3  
¿Los cambios incluyen alguna modificación en el porcentaje de participación en la producción de la 
Rama de Producción Nacional?  
 
RESPONSE  
No, Japan did not change the proportion of a pplicants' output to the total domestic production.  
 
Pregunta 4. - 
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.6 Medidas antidumping, compensatorias y de salvaguardia  
Párrafo 3.46. Los derec hos antidumping pueden imponerse por un período no superior a cinco 
años. La medida puede prorrogarse posteriormente previo examen. Una rama de producción 
nacional puede presentar una solicitud de examen a más tardar un año antes de la fecha de 
expiración de la medida. El Gobierno inicia una investigación tras la presentación de una solicitud o 
cuando dispone de pruebas suficientes de la continuación o la repetición del dumping y el daño 
una vez que ha expirado la medida. Si se llega a la conclusión de que la expiración del derecho WT/TPR/M/351/Add.1  
 
- 204 - 
 
  probablemente causaría la continuación o repetición del dumping y el daño, la medida podrá ser 
prorrogada por el Gobierno. En cada caso, la prórroga no excederá de cinco años.  
 
Pregunta 4  
¿Tiene Japón casos en los que se haya exte ndido los derechos antidumping por más de un periodo 
de 5 años? En caso afirmativo, ¿cuáles son los productos y países implicados?  
 
RESPONSE  
 
Country  Product  
Republic of Korea and Chinese Taipei  Certain polyester staple fibre  
Spain, China and South Afric a Electrolytic Manganese Dioxide  
 
Pregunta 5, 6 y 7. - 
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.3 Medidas que afectan a la producción y al comercio  
3.3.3 Política de competencia y controles de precios  
3.3.3.2 Fusiones, adquisiciones y sociedades  de cartera  
Párrafo 3.97. Se aplican restricciones con respecto a las empresas que ocasionan una "excesiva" 
concentración de poder económico en el Japón. Las empresas deben remitir a la JFTC un informe 
empresarial dentro de los tres meses siguientes a la t erminación del ejercicio económico en caso 
de que los activos totales de la empresa y sus filiales superen los siguientes umbrales: 600.000 
millones de yenes en el caso de una sociedad de cartera, 8 billones de yenes en el caso de una 
sociedad financiera y  2 billones de yenes si se trata de otro tipo de sociedad.  
 
Pregunta 5  
¿Es el monto de activos totales de una empresa y sus filiales la única variable a evaluar para la 
determinación de concentración de poder económico en Japón? En caso negativo, ¿qué otra s 
variables se toman en cuenta?  
 
RESPONSE  
The total assets of a company and its subsidiaries only defines the threshold for submittal of a 
business report, pursuant to the provision in paragraph (4), Article 9 of the Antimonopoly Act, 
whereas the Act shal l prohibit establishment or transformation of a company which constitutes an 
excessive concentration of economic power. Companies that are prohibited to establish or 
transform, because they constitute an excessive concentration of economic power, are inter preted 
as ones that are applicable to any one of the following Type 1 to Type 3.  
Type 1. A company group is of large scale (the total assets of the company group exceeds 15 
trillion JPY), and has large -scale enterprises (companies whose total assets exceed  300 billion JPY 
each, on a non -consolidated basis), in each of a substantial number (five or more) of principal 
fields of business (in principle, types of industries that are included in the 3 -digit classifications of 
the Japan Standard Industrial Classif ication, and in which shipment volume exceeds 600 billion 
JPY). 
Type 2. A company that owns both a large -scale financial company (a financial company whose 
total assets exceed 15 trillion JPY, on a non -consolidated basis) and a large -scale company (a 
compa ny whose total assets exceeds 300 billion JPY each, on a non -consolidated basis), except a 
company engaged either in financial business or in a line of business closely related thereto.  
Type 3. A company that owns a substantial number (in principle, five o r more) of companies, each 
of which possesses a substantial position (companies each of which commands a sales share of not 
less than ten percent) over a principal field of business (in principle, a type of industry that is 
included in the 3 -digit classifi cations of Japan Standard Industrial Classification, and in which 
shipment volume exceeds 600 billion JPY), the said fields of business being interrelated but 
different for each company.  
Just for your information, general concentration regulations (3.97) t hat you referred to are 
different regulations from market concentrations (3.95), which prohibit business combinations that 
will substantially restrain competition in a particular field of trade.  
 
Pregunta 6  
¿Qué elementos principales contiene el informe em presarial que las empresas deben remitir a la 
Comisión de Comercio Leal del Japón (JFTC) en caso superen los niveles del umbral?  
 WT/TPR/M/351/Add.1  
 
- 205 - 
 
  RESPONSE  
The contents of the business report pursuant to the provision in paragraph (4), Article 9 of the 
Antimonop oly Act inc ludes: the total assets and the currently conducted businesses of the 
reporting company, the total assets and sales of subsidiaries and virtual subsidiaries in Japan, the 
total assets of the company group the reporting company belongs to, etc.  
 
Pregunt a 7 
¿Son estos tres umbrales los únicos valores para determinar indicios de una "excesiva" 
concentración de poder económico en los mercados de Japón? ¿El umbral de 2 billones de yenes se 
aplica a todos los otros tipos de sociedades – diferentes a las sociedade s de cartera y financieras – 
o es que existen otros sub -tipos de umbrales dentro por actividad sectorial?  
 
RESPONSE  
The threshold for general business companies (i.e. companies that are neither a holding company 
nor a company engaged in banking, insurance or Type I Financial Instruments Business), two 
trillion JPY, is applied to all general business companies.  
And then, as is already stated in the answer to Q5., the total assets of a company and its 
subsidiaries only defines the threshold for submittal of a business report pursuant to the provision 
in paragraph (4), Article 9 of the Antimonopoly Act, and is not a standard for determining whether 
the company falls under a company that constitutes an excessive concentration of economic power 
or not.  
 
 
22. MEXICO 
Informe del Gobierno de Japón ( WT/TPR/G/351 ): 
 
Pregunta 1. WT/TPR/G/351 • Japón; Informe del Gobierno; 2 POLÍTICA COMERCIAL Y 
DE INVERSIÓN; 2.2 OMC:  
 
Página 5, párrafo 2.7. El mantenimiento y fortalecimiento del sistema multilateral de comercio, 
que co nstituye la base del comercio mundial, es uno de los pilares de la política comercial del 
Japón. Desde el examen anterior, el Japón ha seguido empeñado plenamente en lograr que avance 
el sistema multilateral de comercio auspiciado por la OMC. El Japón ha p ropuesto nuevos enfoques 
e ideas para hacer avanzar las negociaciones comerciales en el marco de la OMC, sin abandonar 
los principios de transparencia e inclusión. En el período previo a la conclusión satisfactoria de la 
Décima Conferencia Ministerial de l a OMC, celebrada en Nairobi en 2015, el Japón realizó 
importantes contribuciones para zanjar las diferencias entre los Miembros y lograr el consenso. El 
principal tema de debate en la Conferencia fue el examen de la función de negociación que 
cumpliría la OMC en el futuro, en particular la cuestión de si continuarían las negociaciones sobre 
el Programa de Doha para el Desarrollo (PDD). Sin embargo, no se adoptó decisión concreta 
alguna al respecto porque los Miembros no lograron ponerse de acuerdo. El Japón  parte de la base 
de que cada una de las ocho esferas que abarca el PDD, incluida la relativa al desarrollo, sigue 
teniendo importancia. Sin embargo, también considera que hay que examinar nuevos enfoques, en 
particular cuestiones "actualizadas", a fin de revitalizar y fortalecer la función de negociación de 
la OMC.  
 
México pregunta 1  
 ¿A qué se refiere Japón con los "nuevos enfoques" y "cuestiones actualizadas, a fin de revitalizar y 
fortalecer la función de negociación de la OMC? ¿Qué temas comerciales ti ene interés Japón de 
negociar en la OMC?  
 
RESPONSE  
Looking ahead to MC11 and beyond, we must address the issues, old and new, that help to 
facilitate trade and meet the needs of the present time, aiming for incremental but tangible 
outcomes. From this poin t of view, Japan considers it necessary to strengthen the negotiation 
function of WTO, addressing outstanding and new issues through new formats of negotiations, 
with flexibility and concreteness.  Concretely, as for new issues, we should deal with the up d ated 
issues, taking into account the huge changes in economic structures, such as the development of 
digital trade and the deepening of global value chains. As for new formats of negotiations, for 
example, we should actively utilize plurilateral negotiatio ns in relevant areas as a method whereby WT/TPR/M/351/Add.1  
 
- 206 - 
 
  WTO Members can discuss with a sense of urgency. In this context, Japan places importance on 
the reopening of the negotiation of TiSA and EGA, and their conclusion.  
 
Informe de la Secretaría de la OMC ( WT/TPR/S/351 ): 
 
Pregunta 2. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3  POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.6 Medidas antidumping, compensatorias y de salvaguardia; 3.1.6.2 
Medidas antidump ing: 
 
Página 42, párrafo 3.42. Las investigaciones antidumping se inician de conformidad con la Ley 
Arancelaria4 y la Orden del Consejo de Ministros relativa a los Derechos Antidumping.5 Las ramas 
de producción japonesas pueden presentar sus solicitudes de  iniciación de una investigación al 
Ministerio de Hacienda.6 En el párrafo  5 del artículo  8 de la mencionada Ley se dispone que podrá 
iniciarse una investigación cuando el Gobierno lo considere necesario, cuando se haya presentado 
una solicitud a tal efect o o cuando haya suficientes pruebas.7 Según las autoridades, el Ministro de 
Hacienda, el Ministro con competencia sobre la rama de producción de que se trate y el Ministro de 
Economía, Comercio e Industria deben adoptar conjuntamente la decisión de iniciar  la 
investigación. El Ministro de Hacienda da a conocer la decisión mediante la publicación de un aviso 
público en la Gaceta Oficial. Según las autoridades, las investigaciones se realizan de conformidad 
con el Acuerdo Antidumping y las leyes y reglamentos  conexos. La decisión definitiva de imponer 
un derecho antidumping se dicta como orden del Consejo de Ministros.  
 
México pregunta 2  
El artículo 8.5 de la Ley Arancelaria (referido en el párrafo 3.42, nota al pie de página 31, del 
Informe de la Secretaría d e la OMC, contenido en el documento WT/TPR/S/351) indica que "el 
Gobierno, a solicitud formulada conforme a las disposiciones del párrafo precedente o cuando 
existan pruebas suficientes de la importación de productos objeto de dumping y de la existencia de  
daño importante, etc., a la rama de producción nacional causado por tal importación, iniciará si lo 
considera necesario una investigación acerca de la existencia de tales hechos".  
En relación con el artículo referido, ¿podría Japón indicar, a manera de ej emplo, en qué casos o 
por cuáles razones podría considerar innecesario iniciar una investigación, aun cuando se cumplan 
los requisitos que el mismo artículo menciona?  
 
RESPONSE   
It would not be regarded as "found to be necessary" to initiate an investigati on as referred to in 
paragraph 5 of Article 8 of the Customs Tariff Law, unless the requirements in Article 5.4 of Anti -
dumping Agreement are satisfied.  
 
Pregunta 3. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3  POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR M EDIDAS; 3.1 Medidas que afectan directamente a las 
importaciones; 3.1.6 Medidas antidumping, compensatorias y de salvaguardia; 3.1.6.2 
Medidas antidumping:  
 
Página 42, párrafo 3.43. Cuando se realiza una determinación preliminar ésta se ha de notificar a 
las partes interesadas y debe publicarse un aviso público.8 Las autoridades afirman que no es 
obligatorio realizar determinaciones preliminares.  
 
                                                
4 Documento G/ADP/N/1/JPN/2 de la OMC, de 30 de junio de  1995.  
5 Información en línea del Ministerio de Justicia (en japonés), consultada en: http://law.e -
gov.go.jp/htmldata/H06/H06SE41 6.html (en japonés).  
6 El párrafo  4 del artículo  8 de la Ley Arancelaria estipula que "una persona que tenga interés en una 
rama de producción nacional conforme al párrafo  1 del presente artículo, en la forma en que se establezca 
mediante la orden pertinen te del Consejo de Ministros," podrá presentar una solicitud de iniciación de una 
investigación antidumping al Ministerio de Hacienda.  
7 Párrafo  5 del artículo  8 de la Ley Arancelaria. El alcance de la rama de producción nacional se 
determina en el párrafo  1 del artículo  4 de la Orden del Consejo de Ministros relativa a los Derechos 
Antidumping.  
8 Párrafo  2 del artículo 13 de la Orden del Consejo de Ministros relativa a los Derechos Antidumping.  WT/TPR/M/351/Add.1  
 
- 207 - 
 
  México pregunta 3  
Al respecto, ¿podría Japón indicar si existen criterios o directrices particulares para deter minar si 
se realizarán determinaciones preliminares en un procedimiento determinado? En caso afirmativo, 
¿podría Japón señalar, en términos generales, dichos criterios?  
 
RESPONSE  
The Government of Japan may make a preliminary determination when the fact of  the importation 
of the dumped product and the fact of the material injury, etc. to the domestic industry caused by 
such importation are presumed  
 
Pregunta 4. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS;  3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Normas y otras prescripciones técnicas; Cuadro 3.18 Principales leyes 
relativas a las normas y los reglamentos técnicos; página 65:  
 
México pregunta 4  
De las leyes que se mencionan en el cuadro  3.18, ¿cuáles de ellas ya fueron notificadas al Comité 
de Obstáculos Técnicos al Comercio de la OMC?  
 
RESPONSE  
None of the laws in Table 3.18 is notified to the WTO since the last review.  
 
Preguntas 5 a 8. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Normas y otras prescripciones técnicas:  
 
Página 69, párrafo 3.133. No es obligatorio atenerse a las normas agrícolas para importar 
productos agríc olas en el Japón, con la excepción de los vegetales de cultivo ecológico y los 
productos alimenticios ecológicos elaborados de origen vegetal. La Ley sobre la Normalización y el 
Etiquetado Correcto de los Productos Agrícolas y Forestales faculta a organiza ciones de terceros a 
certificar a las empresas (por ejemplo, los fabricantes) para que puedan utilizar marcas JAS. El 
Ministro de Agricultura, Silvicultura y Pesca, los organismos de certificación registrados y los 
organismos de certificación extranjeros r egistrados se encargan de la vigilancia y la gestión de 
esas marcas.9 Los productores o fabricantes extranjeros certificados por organismos de 
certificación registrados, nacionales o extranjeros pueden aplicar su propio sistema de clasificación 
y usar en s us productos las marcas JAS. En marzo de  2016 había 23 organismos de certificación 
registrados extranjeros y  92 nacionales; además, había alrededor de 3.000 operadores certificados 
extranjeros y  7.000  operadores certificados nacionales.  
 
México pr egunta 5  
¿Existen organismos o instituciones de certificación del sistema de marcas JIS ubicados en México?  
 
RESPONSE  
There is no accredited certification body for JIS Marking System in Mexico.  
Regarding Japanese Agricultural Standard (JAS) , there is one Registere d Overseas Certifying Body 
(ROCB) in Mexico, named "CERTIMEX, Certificadora Mexicana de Productos y Procesos Ecologicos 
S.C". The Ministry of Agriculture, Forestry and Fisheries in Japan accreditates ROCBs.  
 
México pregunta 6  
¿Dónde se ubican los "organism os de certificación extranjeros registrados" "(registered overseas 
certifying bodies (ROCBs)")?  
 
RESPONSE  
ROCBs of organic products are in Mexico, EU, Australia, New Zealand, Switzerland and India. 
ROCBs of forestry products are in the United States, Canad a, Australia, Norway and Indonesia  
 
México pregunta 7  
¿Existe algún "organismos de certificación extranjeros registrados" "(registered overseas certifying 
bodies (ROCBs)") que pueda aplicar su propio sistema de clasificación y usar en sus productos las 
marcas JAS  ubicado en México?  
                                                
9 Para más información, véase el documento WT/TPR/S/243/Rev.1 d e la OMC, de 2 de mayo de  2011.  WT/TPR/M/351/Add.1  
 
- 208 - 
 
  RESPONSE  
A person who is able to grade his or her products that comply with the Japanese Agricultural 
Standard, and affixes a Grade Label, is not a Registered Certifying Body, but an overseas producer 
or manufacturer who has obt ained a certification from a Registered Certifying Body or a Registered 
Overseas Certifying Body. There are 131 certified overseas producers and manufacturers in 
Mexico.  
 
México pregunta 8  
¿Cuáles son los requisitos para convertirse en un "organismo de cer tificación extranjero 
registrado"?  
 
RESPONSE  
A person who seeks to be accredited as a Registered Overseas Certifying Body shall comply with 
the provisions of article 17 -2 of the Law Concerning Standardization, etc. of the Agricultural and 
Forestry Products  (the accreditation applicant is a juridical person who complies with the standards 
in the ISO/IEC17065, the representative of accreditation applicant is not an officer or employee of 
the certified business operator, etc.). In addition, the person shall ma ke an application for 
accredatation to the Ministry of Agriculture, Forestry and Fishries, and pay an application fee in the 
amount specified in the Cabinet Order.  
 
Pregunta 9. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCI ALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Normas y otras prescripciones técnicas:  
 
Página 70, párrafo 3.135. Los fabricantes extranjeros de productos eléctricos y productos de 
consumo pueden someterse a la evaluación d e la conformidad y la certificación por organismos de 
evaluación de la conformidad acreditados en el extranjero, con arreglo a las leyes pertinentes (por 
ejemplo, la Ley de Seguridad de los Aparatos y Material Eléctricos y la Ley de Seguridad de los 
Produc tos de Consumo). En marzo de  2016, el número de organismos de evaluación de la 
conformidad acreditados en el extranjero y en el Japón era de uno y siete, respectivamente, 
conforme a la Ley de Seguridad de los Productos de Consumo, y de seis y cinco, respec tivamente, 
con arreglo a la Ley de Seguridad de los Aparatos y Material Eléctricos.  
 
México pregunta 9  
En relación con la Ley de Seguridad de los Aparatos y Material Eléctricos y la Ley de Seguridad de 
los Productos de Consumo (" the Electrical Appliance an d Material Safety Law and the Consumer 
Product Safety Act "), ¿existen organismos de evaluación de conformidad ubicados en México?  
 
RESPONSE   
Regarding the Electrical Appliances and Materials Safety Act and the Consumer Product Safety Act, 
there is no conformity assessment body in Mexico.  
 
Pregunta 10. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Normas y otras prescripciones técnicas:  
 
Página 7 0, párrafo 3.136. El Japón acepta los datos de las pruebas sobre productos químicos 
realizadas en otros países, siempre que se ajusten a las directrices para las pruebas y los 
principios de buenas prácticas de laboratorio de la Organización de Cooperación y Desarrollo 
Económicos (OCDE) y a la Decisión del Consejo de la OCDE relativa a la aceptación mutua de 
datos para la evaluación de productos químicos.10 
 
México pregunta 10  
¿Desde cuándo Japón acepta los datos de las pruebas sobre productos químicos realiz adas en 
otros países, siempre que se ajusten a las directrices para las pruebas y los principios de buenas 
prácticas de laboratorio de la Organización de Cooperación y Desarrollo Económicos (OCDE) y a la 
Decisión del Consejo de la OCDE relativa a la acepta ción mutua de datos para la evaluación de 
productos químicos?  
 
                                                
10 De conformidad con la Ley de Control de Sustancias Químicas.  WT/TPR/M/351/Add.1  
 
- 209 - 
 
  RESPONSE  
Since 1984, Japan has accepted test data based on OECD Test Guidelines and OECD principles of 
GLP, for the evaluation stipulated by the Act on the Evaluation of Chemical Substances and  
Regulation of Their Manufacture, etc (also known as CSCL). A country that wants its data to be 
accepted under the scheme of OECD Mutual Acceptance of Data needs to become either an OECD 
member, with a recognized national compliance program, or a full adhe rent to the Council Acts 
related to the Mutual Acceptance of Data in the Assessment of Chemicals.  
 
Pregunta 11. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Normas y otras prescripciones técnicas:  
 
Página 70, párrafo 3.37. El METI ha designado 24 organismos de inspección (hasta 2016), siete de 
los cuales son extranjeros. Ocho organismos han sido designados con arreglo a la Ley de 
Seguridad de lo s Productos de Consumo, 12  en el marco de la Ley de Seguridad de los Aparatos y 
Material Eléctricos, 2 con arreglo a la Ley de Seguridad y Optimización del Manejo del Gas Licuado 
de Petróleo, y 2 con arreglo a la Ley del Sector de Servicios Públicos de Gas . 
 
México pregunta 11  
¿Existe algún organismo de inspección designado por el METI localizado en México?  
 
RESPONSE  
Regarding the Consumer Product Safety Act, the Electrical Appliances and Materials Safety Act, the 
Act on the Securing of Safety and the Optim ization of Transaction of Liquefied Petroleum Gas, and 
the Gas Business Act, the METI does not have a designated inspection body in Mexico.  
 
Pregunta 12. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.6 Normas y otras prescripciones técnicas:  
 
Página 70, párrafo 3.138. El Japón es miembro de la Organización Internacional de Normalización 
(ISO), la Unión Internacional de Telecomunicaciones (UIT), la Comisión Electrotécnica 
Internacional, el Foro Internacional de Acreditación, la Oficina Internacional de Pesos y Medidas, la 
Organización Internacional de Metrología Legal y la Cooperación Internacional de Acreditación de 
Laboratorios, así como de varios organismos regionales de normalización y acreditación.  
 
México pregunta 12  
¿Cuáles son los organismos regionales de normalización y acreditación a los que pertenece Japón 
que se mencionan en el párrafo 3.138?  
 
RESPONSE  
For example, Japan is a member of th e Pacific Area Standards Congress (PASC), Pacific 
Accreditation Cooperation (PAC) , Asia Pacific Laboratory Accreditation Cooperation (APLAC) , Asia 
Pacific Metrology Programme (APMP), and Asia -Pacific Legal Metrology Forum (APLMF)  
 
Pregunta 13. WT/TPR/S/351  • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.10 Derechos de propiedad intelectual; 3.3.10.1 Panorama general; Cuadro 
3.31 Resumen de la protección de los de rechos de propiedad intelectual, 2016; Patentes, 
página 82:  
 
México pregunta 13  
¿Cuáles son los requisitos para pedir la extensión en la duración de las patentes de productos 
químicos agrícolas y medicamentos?  
 
RESPONSE  
The requirement of "Extension of pa tent term" is provided in Article 67(2) of Patent Act as follows.  
 
Article 67(2)  
Where there is a period during which the patented invention is unable to be worked because 
approvals prescribed by relevant Acts that are intended to ensure the safely, etc. or any other 
disposition designated by Cabinet Order as requiring considerable time for the proper execution of WT/TPR/M/351/Add.1  
 
- 210 - 
 
  the disposition in light of the purpose, procedures, etc., of such a disposition is necessary to obtain 
for the working of the patented inventio n, the duration of the patent right may be extended, upon 
the filing of a request for the registration of extension of the duration, by a period not exceeding 5 
years.  
 
The definition of dispositions designated by Cabinet Order under Article 67(2) of the P atent Act 
includes a registration of agricultural chemicals and approval of drug products.  
 
More specific conditions are provided in Article 67bis of Patent Act as follows:  
 
Article 67bis  
(1) A person(s) filing an application for the registration of exten sion of the duration of a patent 
right shall submit a written application to the Commissioner of the Patent Office stating the 
following:  
(i) the name, and the domicile or residence of the applicant;  
(ii) the patent number;  
(iii) the period for which the e xtension is requested (not exceeding 5 years); and  
(iv) the description of the disposition designated by Cabinet Order as provided in Article 67(2).  
(2) The written application under the preceding paragraph shall be accompanied by materials 
specifying the reason(s) for the extension, as provided by Ordinance of the Ministry of Economy, 
Trade and Industry.  
(3) The application requesting the registration of extension of the duration of a patent right shall 
be filed within the time limit prescribed by Cabinet Order after the disposition prescribed by 
Cabinet Order under Article 67(2) is obtained; provided, however, that said written application 
may not be filed after the expiration of the duration of a patent right as provided in Article 67 (1).  
(4) Where a pat ent right is jointly owned, none of the joint owners may file an application for the 
registration of extension of the duration of a patent right unless jointly with all the other joint 
owners.  
(5) Where an application for the registration of extension of t he duration of a patent right is filed, 
the duration shall be deemed to have been extended; provided, however, that this shall not apply 
where the examiner's decision to the effect that the application is to be refused has become final 
and binding or where  the extension of the duration of a patent right has been registered.  
(6) Where an application for the registration of extension of the duration of a patent right is filed, 
matters stated in paragraph (1) and the number and the filing date of the applicati on shall be 
published in the patent gazette  
 
Preguntas 14 y 15. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.10 Derechos de propiedad intelectua l; 3.3.10.1 Panorama general; Cuadro 
3.31 Resumen de la protección de los derechos de propiedad intelectual, 2016; 
Indicaciones geográficas; página 85:  
 
México pregunta 14  
¿Cuál es el tratamiento que le dan a las indicaciones geográficas extranjeras?  
 
RESP ONSE  
Foreign GI products can be registered in Japan. Specifically, there are two ways for foreign GI 
products to be protected in Japan. One way is to file an application for GI registration directly to 
the Ministry of Agriculture, Forestry, and Fisheries. The other way is to mutually protect the GI 
products through an international agreement.  
 
México pregunta 15  
¿Existe algún criterio para la pérdida de validez de la Indicación Ge ográfica relacionada al desuso?  
 
RESPONSE  
GI is not cancelled immediately even  if it is no longer used. However, for example, if the GI will 
not be well managed and then the GI becomes common name for the relevant product in Japan, it 
will be cancelled. Additionally, if the foreign GI which has been protected through an internationa l 
agreement becomes no longer protected under the GI protection system of the country of origin, it 
will not be protected in Japan  
 WT/TPR/M/351/Add.1  
 
- 211 - 
 
  Pregunta 16. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas q ue afectan a la producción y al 
comercio; 3.3.10 Derechos de propiedad intelectual; 3.3.10.2 Patentes:  
 
Página 88, párrafo 3.180. Según las autoridades, el Japón contempla adoptar las medidas 
necesarias para aplicar el Acuerdo TPP. En particular, ha examin ado la posibilidad de i)  prorrogar 
de 6 meses a 1 año el plazo previsto para invocar una excepción a la falta de novedad de una 
invención, para toda invención que haya perdido su carácter de novedad por haberla publicado 
voluntariamente el solicitante ante s de la presentar la solicitud; ii)  introducir un sistema que 
permita prorrogar la duración de un derecho de patente en los casos en que tal derecho se haya 
registrado más de 5  años después de la fecha de presentación de la solicitud de patente, o más de 
3 años después de la fecha de presentación de la solicitud de examen, si esta opción fuera 
posterior.  
 
México pregunta 16  
De acuerdo con la actual posición de Estados Unidos respecto del Acuerdo de Cooperación 
Transpacífico (TPP), ¿cuál es la posición de Ja pón respecto a las modificaciones que se mencionan 
en este párrafo, relativas a patentes?  
 
RESPONSE  
With regard to the amendment of the Patent Act on the measures mentioned in 3.180, (the 
Government of) Japan has already finished its amendment process for Japan. The amendment will 
take effect on the date when TPP comes into force  
 
Pregunta 17. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.10 Derech os de propiedad intelectual; 3.3.10.6  
 
Página 90, párrafo 3.191. La nueva ley de protección de las indicaciones geográficas (Ley de 
Protección de determinados Artículos y Productos Alimenticios procedentes de la Agricultura, la 
Silvicultura y la Pesca) fue  elaborada por el Ministerio de Agricultura, Silvicultura y Pesca y entró 
en vigor en junio de  2015. Se aplica únicamente a las indicaciones geográficas de alimentos, 
bebidas y productos agropecuarios y marinos.  
 
México pregunta 17  
¿Cuáles son las diferenc ias entre el registro de indicaciones geográficas para alimentos, bebidas y 
productos agropecuarios y marinos, por un lado y el registro de bebidas alcohólicas, por otro? 
¿Existe alguna diferencia respecto a la protección de alimentos, bebidas y productos agropecuarios 
y marinos y el registro de bebidas alcohólicas?  
 
RESPONSE  
In order to be protected as  GI of agricultural, forestry and fishery products and foodstuffs, a group 
of producers needs to submit an application for GI registration to the Ministry of  Agriculture, 
Forestry and Fisheries of Japan (MAFF). The MAFF will examine the application, and will register 
the product as GI if it meets the requirements for GI.  For more information, please refer to the link 
below.  
http://www.maff.go.jp/e/policies/in tel/gi_act/index.html . 
 
In order to be protected as GI of alcoholic beverages, it is necessary to be designated by the 
commissioner of National Tax Agency (NTA). For that designation, precise information about 
respective GIs in Japanese should be submitted  for the NTA 's consideration. NTA will examine that 
information whether it meets all the requirements as GI of alcoholic beverages,  and then set a 
period for public comment before the final decision  
 
Informe de la Secretaría de la OMC ( WT/TPR/S/351 ): 
Pregu ntas 18 y 19. WT/TPR/S/351 • Japón; Informe de la Secretaría; 3 POLÍTICAS Y 
PRÁCTICAS COMERCIALES, POR MEDIDAS; 3.3 Medidas que afectan a la producción y al 
comercio; 3.3.3 Política de competencia y controles de precios; 3.3.3.1 Evolución 
reciente:  
 
Págin a 54, párrafo 3.90. El principal cambio reglamentario acaecido durante el período objeto de 
examen fue la entrada en vigor, con efecto a partir del 1º de abril de  2015, de la modificación de WT/TPR/M/351/Add.1  
 
- 212 - 
 
  la Ley Antimonopolio de  2013. Con ella se introdujo un nuevo proc edimiento de apelación, en 
virtud del cual el Tribunal de Distrito de Tokio se encarga de examinar las órdenes administrativas 
dictadas por la JFTC, mientras que, con arreglo al sistema anterior, la JFTC tenía la facultad de 
examinar sus propias órdenes ad ministrativas.  
 
México pregunta 18  
¿Qué beneficios ha obtenido Japón de un nuevo procedimiento de apelación?  
 
RESPONSE  
By abolishing the JFTC 's hearing examination procedure for administrative appeals, the criticism 
that the JFTC plays the roles of both p rosecutor and judge in procedure has been addressed  
 
México pregunta 19  
¿El Tribunal de Distrito de Tokio se especializa en asuntos de competencia económica?  
 
RESPONSE  
The expertise in Tokyo District Court is ensured through measures such as allocating an titrust 
cases to a specific department. It is considered that the expertise in Tokyo District Court is being 
further enhanced because only the court has jurisdiction over appeal suits against cease and desist 
orders/surcharge payment orders as a court of f irst instance under a new appeal procedure . 
 
 
23. COLOMBIA  
Informe de la Secretaría WT/TPR/S/351  
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1.  Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros  
3.1.1. 2  Derechos y formalidades  
El párrafo 3.15 del informe de la Secretaría señala que… "El sistema de levante antes de la 
obtención del permiso permite el levante de las mercancías importadas antes de que se haya 
obtenido el permiso de importación, con sujeci ón al pago de una fianza equivalente a los derechos 
previstos para las mercancías. Los comerciantes pueden utilizar este sistema en distintas 
situaciones, entre las que se incluyen las siguientes: cuando sea necesario proceder rápidamente 
al levante de las  mercancías importadas porque se trate de mercancías valiosas o perecederas; 
cuando las mercancías se destinen a exposiciones, y cuando se retrase la presentación del 
certificado de origen debido a la aplicación del tipo arancelario preferencial. Todos los  
comerciantes pueden utilizar este sistema, que es especialmente ventajoso para el levante de 
mercancías perecederas."  
 
Preguntas:  
 
1. ¿En el caso de mercancías perecederas, se requiere como soporte los vistos buenos sanitarios o 
fitosanitarios en el momen to de otorgar el levante así no haya obtenido el permiso de importación?  
 
RESPONSE  
Importers or customs brokers must submit required certifications, issued in accordance with other 
related laws, when they use before permission release system.  
 
2. ¿Japón p odría explicar el tratamiento que aplica a las mercancías perecederas?  
 
RESPONSE  
Under before permission release system, same procedures and requirements are applied for 
perishables and other products. Please refer to the following website for more details  on the 
procedures and requirements:  
http://www.customs.go.jp/english/procedures/m49040/fk.htm . 
 
 WT/TPR/M/351/Add.1  
 
- 213 - 
 
  24. COSTA RICA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 72 (paragraph 3.144)  
 
3.144. Entre las MSF nuevas o revisadas que se han adoptado o pr opuesto desde el último examen 
del Japón figura la propuesta de revisión del reglamento de aplicación de la Ley de Protección 
Fitosanitaria, que comprende modificaciones a la lista de plagas de cuarentena y la lista de plagas 
no cuarentenarias, la lista de  vegetales sujetos a inspecciones sobre el terreno en los países 
exportadores, la lista de vegetales cuya importación está prohibida y la lista de vegetales sujetos a 
medidas fitosanitarias específicas en los países exportadores. El Japón puso en vigor, el  1º de julio 
de 2014, prescripciones adicionales sobre la diarrea epidémica porcina (PED) aplicables a la 
importación de animales vivos de la especie porcina y, el 11 de julio de 2014, prescripciones 
adicionales sobre la harina de sangre de porcino procede nte de países donde la PED era 
endémica.103  
 
Question:  
 
1. According to the revision of the Plant Protection Law implementing regulation, what 
modifications were made to the list of quarantine pests and the list of non -quarantine pests, the 
list of plants  subject to on -the-spot inspections in exporting countries, list of plants whose 
importation is prohibited and the list of plants subject to specific phytosanitary measures in 
exporting countries? Is there any updated list containing all the information?  
 
 
RESPONSE  
The Ordinance for Enforcement of the Plant Protection Act was amended on 24th May 2016, when 
the Government of Japan revised the 'Quarantine Pest List' and 'Non -Quarantine Pest List', 'List of 
the Plants Subject to Field Inspection in Exporting C ountries',  'List of the Import Prohibited Plants' 
and 'List of the plants subject to Specific Phytosanitary Measures to be carried out in Exporting 
Countries'.  
The above lists are available at the following URL.  
http://www.maff.go.jp/j/syouan/keneki/kikaku /pdf/438a1.pdf . 
 
 
Page 75 (paragraph 3.164)  
 
3.164. Además, después de una serie de negociaciones bilaterales con los Estados Unidos en los 
decenios de 1980 y 1990, el Japón ha establecido distintas medidas generales y sectoriales, 
denominadas "medidas vol untarias", que implican compromisos que van más allá de los contraídos 
en el marco del Acuerdo sobre Contratación Pública de la OMC por lo que respecta a umbrales, 
entidades y sectores abarcados, y obligaciones de procedimiento. Los procedimientos aplicabl es a 
las medidas voluntarias generales, contenidos inicialmente en un Entendimiento sobre 
Contratación Pública de noviembre de 1991, figuran ahora en los Procedimientos Operativos para 
la Contratación Pública de 31 de marzo de 2014.  
 
Question:  
 
2. ¿Las "m edidas voluntarias" a las que se hace referencia, aplican únicamente entre Japón y 
Estados Unidos o son aplicadas a otros países parte del Acuerdo sobre Contratación Pública de la 
OMC? ¿Cómo se definieron los sectores abarcados por las medidas?  
 
RESPONSE  
As long as the conditions for participation are satisfied, not only the business operators of the 
Parties of the GPA including the U.S. but also those of non -Parties of the GPA are eligible to 
participate as suppliers in tendering for Japan 's government pro curement based on the voluntary 
measures.  
Besides, as a result of the discussion between Japan and the United States, each sector was 
voluntarily selected by Japan.  
 
 WT/TPR/M/351/Add.1  
 
- 214 - 
 
   
Page 92 (paragraph 3.197)  
 
3.197. La modificación de la Ley del Derecho de Autor intr oducida en 2012, que prevé la 
imposición de sanciones penales por la descarga ilegal de materiales protegidos por derechos de 
autor, entró en vigor en 2013.  
 
Question:  
 
3. ¿La Ley del Derecho de Autor contempla exención de responsabilidad para los prestado res de 
servicios de internet en el caso de que a través de los servicios que ponen a disposición se 
descargue material ilegal?  
 
RESPONSE  
Although there is no such exemption from liability for internet service providers under the 
Copyright Act, there is the provision of exemption under certain conditions in the "Act on the 
Limitation of Liability for Damages of Specified Telecommunications Service Providers and the 
Right to Demand Disclosure of Identification Information of the Senders".  
 
Page 96 (paragraph 3.212)  
 
3.212. De conformidad con los objetivos y mandatos establecidos en la Ley Básica, la Oficina 
Central publica cada año un programa estratégico de propiedad intelectual. Desde que se crearon 
en 2003, los programas estratégicos de propiedad intelectua l han permitido alcanzar varios logros, 
entre los que cabe citar los nuevos instrumentos legislativos y las revisiones de la legislación 
existente (Ley de Patentes, Ley del Derecho de Autor, etc.), además de la creación de 
infraestructuras e instituciones en materia de propiedad intelectual. Entre las principales mejoras 
destaca el establecimiento del Tribunal Superior de la Propiedad Intelectual en abril de 2005, el 
establecimiento de oficinas de licencia de tecnología en las universidades, la reestructura ción de 
los sistemas educativos en lo relativo a la formación profesional en la esfera de la propiedad 
intelectual, y el aumento del número de examinadores de patentes y agentes de patentes, la 
revisión de las disposiciones relativas a las invenciones de l os empleados, y el fortalecimiento de la 
protección del secreto comercial.  
 
Question:  
 
4. ¿La política en materia de propiedad intelectual contempla disposiciones relacionadas con 
transferencia de tecnología?  
 
RESPONSE  
According to "Intellectual Property Policy Vision" (decision of the Intellectual Property Strategy 
Headquarters in June 7, 2013) and "Basic Policy Concerning Intellectual Property Policy" (decision 
of the Cabinet in June 7, 2013), they include initiatives of collaboration between university and 
enterprise and technology transfer. These initiatives are described at pages 20 -24 in "IP Strategic 
Program 2016".  
 
 
 
25. CHILE  
Informe de la Secretaría  
 
2 RÉGIMEN DE COMERCIO E INVERSIÓN  
2.4 Régimen de inversión  
 
Párrafo 2.19,  señala que con el fin de mejorar el entorno económico para la IED, el Gobierno 
Japonés sigue aplicando políticas para fortalecer la gobernanza empresarial y fomentar una mayor 
integración en la economía mundial.  
 
Pregunta 1  
Chile agradecería a Japón indicar ejemplos de este ti po de políticas y cuál ha sido el impacto en el 
entorno económico para la IED.  WT/TPR/M/351/Add.1  
 
- 215 - 
 
  RESPONSE  
① Regarding corporate governance, Japan 's Stewardship Code (the "JSC") and Japan 's Corporate 
Governance Code (the "JCGC") were published in 2014 and 2015 (see also par agraphs 
3.108 -3.111 of WT/TPR/S/351). For the purpose of further improving corporate governance of all 
listed companies, the Government of Japan established the "Council of Experts Concerning the 
Follow -up of Japan 's Stewardship Code and Japan 's Corporate Governance Code" (the "Council"), 
which is composed of experts; including members from corporate executives, local and foreign 
investors, and academics. The Council follows up with the prevalence and adoption of the JSC and 
the JCGC, and have published opi nion statements "Corporate Boards Seeking Sustainable 
Corporate Growth and Increased Corporate Value over the Mid - to Long -Term" and "Effective 
Stewardship Activities of Institutional Investors."  
As of December 27, 2016, 214 institutional investors announ ced their acceptance of the JSC, and 
according to the report of "How Listed Companies Have Addressed Japan 's Corporate Governance 
Code (Status as of December 2016)"  of Tokyo Stock Exchange Inc. (the "TSE"), 89.2% of the 
Japanese companies listed on the fir st Section comply with over 90% of the 73 principles in the 
JCGC. In addition, according to TSE 's report of "Appointment of Independent Directors by  
TSE-Listed Companies" published on July 27, 2016, 79.7% of the Japanese companies listed on 
the 1st Section  appoint two or more independent directors as prescribed in the JCGC (increased by 
653 companies (31.3%) from the previous year). Also, unwinding of cross shareholding is 
proceeding. For example, Japan 's three major banking groups announced that they would  reduce 
their stockholdings held for the purpose of keeping business relations by around 30% within three 
to five years. In some cases, unwinding of cross shareholding is combined with share buybacks.  
 
②As one of the measures to enhance Japan 's locational attractiveness and competitiveness of 
Japanese companies, the Government of Japan initiated a growth -oriented corporate tax reform, 
which aims at expanding tax base while reducing tax rate. As a result, while securing substantial 
source of revenue, the Gov ernment of Japan has reduced the effective corporate tax rate down to 
twenties, reaching an internationally -comparable level.  
 
Párrafo 2.21,  relativo a la Ley de Zonas Especiales Estratégicas Nacionales, se señala que "cabe 
esperar que la reforma a la regl amentación sirva para impulsar la inversión".  
 
Pregunta 2  
Chile agradecería a Japón precisar el contenido de la reforma y qué tipo de medidas contempla 
para impulsar la inversión.  
 
RESPONSE  
The National Strategic Special Zones grants special provisions in  a variety of fields (78 total 
reforms have ever been realized by the NSSZs as of February 15, 2017, including the nationwide 
measures), with the aim of developing the easiest environment for doing business in the world, to 
enable private sector to fully s how their abilities that link to economic growth. In addition to 
regulatory reforms, tax reliefs and interest subsidies are also introduced in the NSSZs.  
Examples are as follows: Firstly, the Tokyo One -Stop Business Establishment Center was 
established to promote foreign -owned and domestic venture corporations; the Center offers 
comprehensive support for procedures related to corporate foundation. Secondly, the current 
requirements for the Investor/Business Manager visa category (namely, the need to either employ 
at least two full -time employees or invest a minimum amount of five million yen) can be relaxed in 
the NSSZs, provided that an agreement has been reached between the national government, local 
authorities and the private sector  
 
Párrafo 2.27,  se des criben los tratados bilaterales sobre inversión y los acuerdos regionales 
suscritos por Japón, destacando que los firmados con Uruguay (2015), Omán (2015) e Irán (2015) 
aún no han entrado en vigor.  
 
Pregunta 3  
Chile agradecería a Japón indicar los plazos estimados de entrada en vigor y la razón por lo cual 
ello aún no ha ocurrido.  
 
RESPONSE  
The conclusion of these three investment treaties has already been approved by the Japanese 
Diet. Currently, the treaties are in the process of being entered into forc e. 
 WT/TPR/M/351/Add.1  
 
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  4.6 Servicios  
4.6.2 Telecomunicaciones  
Párrafo 4.96 : señala que en el marco del nuevo régimen, la orden n° 31 del MIC, de 29 de marzo 
de 2016, define con precisión las obligaciones de interconexión, así como el método y los 
procedimientos para el cálcu lo de las tarifas de interconexión que deben abonar los operadores de 
redes virtuales móviles, basadas en los costos razonables de una gestión eficiente más un 
beneficio razonable . 
 
Pregunta 4  
Chile agradecería a Japón clarificar los rangos de precios, en porcentajes, que considera 
razonables para la aplicación de la orden n° 31.  
 
RESPONSE  
The interconnection charges cap consists of "reasonable costs" and "reasonable profits". The 
detailed calculation method is specified in the 2016 MIC Ordinance No. 31  
 
Párrafo 4.99  señala que se está debatiendo reducir la duración ordinaria de los contratos de 
telefonía móvil, que actualmente es de dos años,  siguiendo directrices similares . 
 
Pregunta 5  
Chile agradecería a Japón indicar a qué tipo de directrices se refiere y cuáles son los rangos de 
tiempo que establecen.  
 
RESPONSE  
About the mobile telecom duration period, the research society held by the MIC suggested that it 
is appropriate that carriers provide the contracts that do not automatically renew the fixed 
durati on period. Mobile telecom service suppliers provide, in addition to the contracts as usual, 
new contracts that do not automatically renew the fixed duration period, after 2 years from the 
original purchase.  
 
Párrafo 4.103  señala que Japón ha contraído en e l marco del AGCS compromisos plenos en los 
modos 1,2 y 3 en materia de acceso a los mercados, compromisos plenos en los modos 1 y 2 y 
ninguna limitación en materia de trato nacional, excepto lo indicado en los compromisos 
horizontales, en el modo 3 en mate ria de trato nacional que remite a la limitación horizontal "sin 
consolidar en lo referente a las subvenciones para la investigación y el desarrollo".  
 
Pregunta 6  
Chile agradecería a Japón ejemplificar las subvenciones para la investigación y desarrollo, e n el 
modo 3, de exportación de servicios.  
 
RESPONSE  
The Government of Japan has no research and development subsidies in audiovisual services.  
 
4.6.3.2 Servicios de televisión  
4.6.3.2.2 Marco reglamentario  
 
Párrafo 4.124  señala que las empresas de teledifu sión general sujetas a registro conservan su 
licencia permanentemente , salvo en el supuesto de que el registro se deje sin efecto como 
consecuencia de una vulneración de las leyes o reglamentos . 
 
Pregunta 7  
Chile agradecería a Japón indicar ejemplos del ti po de vulneración a las leyes y reglamentos, por 
parte de las empresas de teledifusión general, que provocan la revocación de la licencia 
permanente.  
 
RESPONSE  
Based on Article 131 of the Broadcasting Act, the Minister of Internal Affairs and Communication s 
may revoke a registration of a general television broadcaster when, for instance, the broadcaster 
continuously suspended the operations of general broadcasting for one year or more without 
justifiable grounds, obtained the registration through unfair mea ns, or lost the technical capability 
to appropriately execute the operations of general broadcasting.  
 WT/TPR/M/351/Add.1  
 
- 217 - 
 
  Párrafo 4.124  señala que las empresas de televisión general sujetas a registro deben cumplir 
todas las normas relativas a la programación, mientras que l as sujetas a notificación solo deben 
atenerse a parte de las mismas . 
 
Pregunta 8  
Chile agradecería a Japón clarificar cuáles son "parte" de las normas relativas a la programación a 
las cuales deben atenerse las empresas de televisión general sujetas a noti ficación.  
 
RESPONSE  
General broadcasters subject to notification shall comply with the program standards for the 
editing of the broadcast programs prescribed by paragraph (1) of Article 4 of the Broadcasting Act, 
whereas general broadcasters subject to re gistration additionally shall stipulate their own program 
standards, and they also shall establish a deliberative organ for broadcast programs in order to 
ensure the appropriateness of the broadcast programs.  
 
Párrafo 4.128  señala que, en el contexto de lo s servicios de radio, aunque está permitida dentro 
de ciertos límites , en este sector no existe prácticamente inversión extranjera.  
 
Pregunta 9  
Chile agradecería a Japón clarificar cuáles son los límites para la inversión extranjera en los 
servicios de rad io. 
 
RESPONSE  
Under the Broadcasting Act or the Radio Act, there are foreign ownership restrictions on terrestrial 
radio broadcasters and certified broadcasting holding companies, where the firm 's voting share 
directly owned by foreign nationals or entitie s must not exceed the specified limit (20% or one 
third depending of the cases). On the other hand, there is no restriction on foreign ownership of 
cable radio broadcasters. (See Table 4.15 for more details.)  
 
3.3.10 Derechos de propiedad intelectual  
 
3.3.10.6 Indicaciones geográficas  
 
Pregunta 10  
Chile agradecería a Japón, dar información y aclarar si la nueva ley de protección de IGs, 
contempla la posibilidad de registro de IGs y Denominaciones de Origen extranjeras.  
 
RESPONSE  
Japanese GI Act allows regis tration of foreign products. Additionally, under Japanese GI Act, the 
protection of GI includes the protection of Appellation of Origin provided in Lisbon Agreement.  
There are two ways for foreign products  to be protected in Japan. One way to protect the foreign 
product is to file an application for GI registration directly to the Ministry of Agriculture, Forestry, 
and Fisheries. The other way is to mutually protect the GI products through an international 
agreement.  
 
3.3.10.7 Derecho de autor  
 
Pregunta 11  
Chile agradecería a Japón, dar mayor información acerca del sistema japonés de responsabilidad 
de Proveedores de Servicios de Internet, así como sobre la regulación de la protección para la 
retransmisión de la radiodifusión a través de internet.  
 
RESPONSE  
In accordance with the " Act on the Limitation of Liability for Damages of Specified 
Telecommunications Service Providers and the Right to Demand Disclosure of Identification 
Information of the Senders", even though Internet Service Providers are in the po sition to be able 
to take a measure to prevent transmission of information, unless either of the following case is 
applicable. They are not lia ble for damages to copyright holders :  
(a) when they knew that transmission of information violates the rights o f copyright holders; or  
(b) when they knew the transmission of information, and there is sufficient reasons for them to 
know the violation of the rights of copyright holders.  WT/TPR/M/351/Add.1  
 
- 218 - 
 
  Under the Copyright Act, both right to transmit to the public and right to make a vailable for 
transmission are given to authors and broadcasters, respectively. Therefore, they can take 
measures of injunctive relief etc. against unauthorized retransmission of broadcast through the 
Internet.  
 
3.1.6 Medidas antidumping, compensatorias y d e salvaguardia  
3.1.6.2 Medidas antidumping  
Párrafo 3.42:  Las investigaciones antidumping se inician de conformidad con la Ley Arancelaria y 
la Orden del Consejo de Ministros relativa a los Derechos Antidumping. Las ramas de producción 
japonesas pueden pre sentar sus solicitudes de iniciación de una investigación al Ministerio de 
Hacienda. En el párrafo 5 del artículo 8 de la mencionada Ley se dispone que podrá iniciarse una 
investigación cuando el Gobierno lo considere necesario, cuando se haya presentado u na solicitud 
a tal efecto o cuando haya suficientes pruebas. Según las autoridades, el Ministro de Hacienda, el 
Ministro con competencia sobre la rama de producción de que se trate y el Ministro de Economía, 
Comercio e Industria deben adoptar conjuntamente  la decisión de iniciar la investigación. El 
Ministro de Hacienda da a conocer la decisión mediante la publicación de un aviso público en la 
Gaceta Oficial. Según las autoridades, las investigaciones se realizan de conformidad con el 
Acuerdo Antidumping y las leyes y reglamentos conexos. La decisión definitiva de imponer un 
derecho antidumping se dicta como orden del Consejo de Ministros.  
 
Pregunta 12  
En el párrafo se establece que "el Ministro de Hacienda, el Ministro con competencia sobre la rama 
de prod ucción de que se trate y el Ministro de Economía, Comercio e Industria deben adoptar 
conjuntamente la decisión de iniciar la investigación". Chile agradecería a Japón dar información 
sobre si se contempla considerar la opinión de otro Ministerio que, no es tando a cargo de la rama 
de producción de que se trate el producto bajo investigación, si está ligado a un mercado bajo su 
competencia, el cual es afectado de manera importante.  
 
RESPONSE  
Article 18 of the Cabinet Order Relating to Anti -Dumping Duty provid es that the Minister of 
Finance, the Minister having jurisdiction over a domestic industry that produces the like products 
of the dumped product and the Minister of Economy, Trade and Industry shall, if they find it 
necessary to initiate an investigation, communicate with each other to that effect. Japan is not 
sure which Ministry Chile meant by "Ministries who do not have jurisdiction over the domestic 
industry but have a relation to a distribution of the like products", but there has been no case in 
Japan  where the Ministry having jurisdiction over a domestic industry that produces the like 
products of the dumped product has nothing to do with the market of the products concerned.  
 
3.1.5 Prohibiciones, restricciones, licencias y contingentes de importación  
3.3.5 Comercio de Estado, empresas públicas y privatización  
Párrafo 3.113:  Según las autoridades, las empresas comerciales del Estado se mantienen, entre 
otras cosas, para asegurar el desarrollo racional de determinados sectores y el suministro estable 
de alimentos básicos y por motivos médicos y científicos.  
 
Pregunta 13  
De acuerdo al párrafo, la mantención de Empresas comerciales del Estado se debe, entre otras 
cosas, a motivos médicos y científicos. Chile agradecería a Japón dar mayor información sobre  
dichos motivos, así como ejemplos concretos.  
 
RESPONSE  
State Trading Enterprises (hereafter " STEs") in Japan, and their trade -related activities, are listed 
in Table 3.16 in the report by the secretariat.  
The purpose for establishing and/or maintaining ea ch STE is described in the following URL;  
https://docs.wto.org/dol2fe/Pages/FE_Search/DDFDocuments/229783/q/G/STR/N16JPN.pdf . 
 
 
3.3.9 Contratación pública  
Párrafo 3.161: Los principales cambios durante el período objeto de examen incluyen la 
modificación, en mayo de 2016, de los Procedimientos Operativos para la Contratación Pública 
(Orden Nº 372 de 2006), con la que introdujo el "sistema de ofertas múltiples", mediante el cual 
dos o más empresas pueden presentar sus ofertas para un proyecto si una de ellas  no puede 
satisfacer la totalidad de la cantidad licitada por sí misma.  WT/TPR/M/351/Add.1  
 
- 219 - 
 
  Pregunta 14  
Respecto a la modificación de los Procedimientos Operativos para la Contratación Pública en Japón 
realizada en mayo 2016, la cual introduce el "sistema de ofertas múltiple s", que permite que dos o 
más empresas puedan presentar sus ofertas para un proyecto si una de ellas no puede satisfacer 
la totalidad de la cantidad licitada por sí misma.  
Chile agradecería a Japón aclarar y dar mayor información sobre el alcance práctico  de esta 
modificación, específicamente si se permite la participación de proveedores extranjeros y en dicho 
caso, si éstos pueden presentar ofertas múltiples en conjunto con nacionales o con extranjeros de 
distintos acuerdos preferenciales (por ejemplo, Ch ile y Estados Unidos), o solamente deben ser 
extranjeros de un mismo acuerdo de compras públicas.  
 
RESPONSE  
Both central and sub -central governments can apply "multiple -award tendering" to the 
procurement implemented under the GPA. Therefore, conditions fo r participation on each 
procurement project are defined under the GPA and relevant laws and regulations.  
 
 
26. GUATEMALA  
1. En el párrafo 3.175, sobre las Modificaciones a la Ley de Prevención de la Competencia Desleal, 
¿podrían indicarnos qué grado de imp ortancia tiene la figura de los secretos empresariales en el 
ámbito comercial y cuáles fueron las causas de la modificación de esta ley?  
 
RESPONSE  
Trade secrets are regarded as the source of competitiveness of companies, and the Unfair 
Competition Prevent ion Act was amended to enhance the deterrence against misappropriation of 
trade secrets  
 
2. En relación con el párrafo 3.202, sobre la Oficina de Protección de la Propiedad, ¿podrían 
proporcionarnos mayor información sobre el funcionamiento e integración d e dicha oficina, así 
como las acciones de asesoría que brinda a las industrias por infracciones de propiedad intelectual 
en el extranjero?  
 
RESPONSE  
Trade secrets are regarded as the source of competitiveness of companies, and the Unfair 
Competition Preve ntion Act was amended to enhance the deterrence against misappropriation of 
trade secrets  
 
3. En el cuadro 3.31 (Resumen de la protección de los derechos de propiedad intelectual, 2016), 
se comenta sobre la Ley de Marcas de Fábrica o de Comercio (modificad a por última vez en 2016). 
En relación con el plazo de vigencia de 10 años del registro de las marcas de fábrica o comercio, 
agradeceríamos nos indiquen si existe un plazo de renovación (en caso afirmativo por cuánto 
tiempo) y si la legislación contempla l a protección de señales de publicidad.  
 
RESPONSE  
The duration of a trademark right shall expire after ten years from the date of its registration. The 
duration of a trademark right can be renewed every ten years if the right holder applies for 
registratio n of renewal.   
In addition, the marks used for advertisement relating goods or services can be registered as 
trademarks if it meets the requirements, and can be protected under the Trademark Act in Japan  
 
4. En el cuadro 3.31 (resumen de la protección de l os derechos de propiedad intelectual, 2016), se 
comenta también sobre la Ley de Dibujos y Modelos Industriales (modificada por última vez en 
2016). En este sentido agradeceríamos nos indiquen si se contempla una protección sin 
formalidades para los dibujos  y los modelos industriales.  
 
RESPONSE  
A design (an industrial design) is the subject of protection under the Design Act, provided that it 
corresponds to the definition of the design in Article 2 of the Design Act. Since a design right shall 
become effect ive upon its registration after Japan Patent Office (JPO) examines whether the 
application of the design meets the requirements for design registration, including the requirement WT/TPR/M/351/Add.1  
 
- 220 - 
 
  for being the subject of protection, applicants requesting for a design regis tration shall file an 
application to JPO  
 
Respecto de la sección 3.3.10.7 (derecho de autor) ¿podrían indicarnos si a los programas 
informáticos se les otorga una protección sui generis?  
 
RESPONSE  
Computer programs, as well as other works, are protected un der the Copyright Act in general, 
provided that they meet a requirement of creativity.  
As for right related to computer programs, various elements need to be considered depending on 
the specific nature of the computer programs, such as the criteria for re gistration, procedure of 
registration and the manner of public notices. To carry out such specific registration precisely and 
promptly, the registrations for the copyright related to computer programs are conducted by the 
Software Information Center (SOFTI C) which is a designated registration organization by the 
Commissioner for Cultural Affairs . 
 
 
27. ECUADOR  
Informe de la Secretaría de la OMC. - 
 
1. De conformidad con la página 36, párrafo 3.24, en relación al aumento del promedio de los 
equivalentes ad va lorem  de los derechos no -ad valorem , ¿podría indicarnos Japón a qué se debió 
el aumento del equivalente del promedio de los derechos no -ad valorem  y si existió alguna 
modificación en el componente específico de esos derechos?   
 
RESPONSE  
Animal feed is not covered by the Food Labelling Standards (Ordinance of the Cabinet Office No.10 
of 2015)  
 
2. De conformidad con la página 47, párrafo 3.71, en relación a los seguros de comercio e 
inversiones y créditos a las exportaciones. Tomando en consideración que los riesgos asegurados 
varían de acuerdo al destino, tipo y actividad de la empresa, ¿podría indicarnos Japón si el pago de 
la prima es similar para cada una de las empresas beneficiarias, cómo se calcula el pago de esa 
prima y si ese cálculo se lo efectúa en virtud de la cobertura del seguro?  
 
RESPONSE  
NEXI has different insurance premium formulas for each insurance program (e.g. export credit 
insurance, investment insurance and loan insurance).  
The amount of the insurance premium for each transaction is calc ulated in accordance with an 
applicable insurance premium formula and is based on (i) the type and level of insurance risk 
coverage and (ii) the risk profile of such transactions (in case of export credit insurance, export 
amount, payment period (usance), political risk level for an export destination country, and level 
of creditworthiness of a buyer company)  
 
3. De conformidad a la página 62, cuadro 3.16, "Empresas comerciales del Estado notificadas a la 
OMC de conformidad con el artículo XVII", sobre las actividades de la empresa Japan Tobacco Inc. 
(JT) y la Corporación de los Sectores Agrícola y Ganadero (ALIC):  
 
 
a) "JT mantiene un monopolio de la manufactura de tabaco. Por lo tanto, la importación de 
tabaco en rama para la producción de tabaco manufacturad o en el Japón está supeditada a la 
adquisición de tabaco por JT. JT adquiere todo el tabaco en rama producido por los cultivadores 
nacionales de tabaco que conciertan contratos al respecto con JT. JT exporta productos de tabaco 
y desperdicios de tabaco sob re la base de consideraciones comerciales." ¿Podría informarnos Japón 
cómo las actividades de la empresa Japan Tobacco Inc. (JT) se ajustan a las disposiciones en 
materia de empresas comerciales del Estado? ¿Cómo se administra y determina la cantidad de 
tabaco en rama que se debe importar para la manufactura en virtud de los contratos suscritos con 
productores nacionales para adquirir toda su producción de tabaco en rama?  
b) "La ALIC, como empresa comercial del Estado, está autorizada a tomar medidas para 
estabilizar la oferta y la demanda y los precios de los productos lácteos. Importa los productos 
lácteos designados en el marco del comercio de Estado para evitar perturbaciones del mercado, y WT/TPR/M/351/Add.1  
 
- 221 - 
 
  aplica recargos al precio de esas importaciones." ¿Podría indicarno s Japón cómo el recargo a los 
precios de las importaciones se justifican bajo las disposiciones multilaterales y cómo, mediante 
dicho recargo, se evitan las perturbaciones del mercado de lácteos en Japón. Según lo expuesto, 
este recargo interior se aplicar ía al producto importado y no al producto nacional similar, esa 
prescripción se ajusta a las disposiciones sobre trato nacional?  
 
RESPONSE  
(a)(1) The Government of Japan notifies the import of leaf tobacco by JT as a product that is 
imported by the enterpr ise of the kind described in paragraph 1(a), Article 17 of the GATT.  
As the Government of Japan does not impose any restriction on the import of leaf tobacco, the 
non-discrimination principle as stipulated in paragraph 1(a), Article 17 of the GATT to the i mport of 
leaf tobacco is ensured.  
 
(2) The amount of the import of leaf tobacco is determined by JT on the basis of commercial 
considerations, taking into account such factors as supply and demand of manufactured tobacco, 
quality of leaf tobacco, market pr ice, and other relevant characteristics of leaf tobacco.  
 
(b)ALIC, a state trading enterprise, as an agent of the Government of Japan, collects mark -ups 
from imported designated dairy products, in accordance with Japan 's schedule of concessions in 
the WTO Agreement.  
 
4. De conformidad con la página 73, párrafo 3.149, ¿podría informarnos Japón los requisitos que 
debe cumplir una organización oficial de un país exportador para que sus inspecciones puedan ser 
reconocidas por las autoridades sanitarias - fitosa nitarias de Japón?  
 
RESPONSE  
Food Safety  
Regarding the food safety on imported foods, The Ministry of Health, Labor and Welfare (MHLW)  
accepts the results of inspections by inspection agencies that foreign governments recognize that 
they have certain contr ol by foreign government agencies and that they have internationally valid 
inspection accuracy.  
For the detailed procedure of registration to the MHLW 's list of Foreign Official Laboratories, and 
the MHLW 's list of Foreign Official Laboratories, please ref er to the following  URL. 
http://www.mhlw.go.jp/english/topics/importedfoods/dl/1 -10.pdf  
http://www.mhlw.go.jp/english/topics/importedfoods/1 -10.html  
 
Plant Health  
Regarding plant health, Japan does not consider the results of inspection by the private sect or of 
exporting country. In order to prevent entry of pests, Japan requests exporting countries to attach 
a phytosanitary certificate issued by the National Plant Protection Organization of exporting 
countries and conducts import inspection at the ports of  entry, based on the IPPC.  
 
5. De conformidad con la página 94, párrafo 3.207, en donde se menciona que "La Dirección de 
Aduanas del Japón se encarga de la observancia de los derechos de propiedad intelectual en la 
frontera en relación con la importación, la exportación y el tránsito de mercancías infractoras". 
¿Podría indicarnos Japón cómo procede su Dirección de Aduanas en el caso de las mercancías en 
tránsito infractoras, qué acciones, en el marco de la observancia, se toman respecto de esas 
mercancías? ¿Cómo esas acciones se enmarcan en las disposiciones en materia de p ropiedad 
intelectual de la OMC?  
 
RESPONSE  
When Japan Customs finds a good suspected of infringing intellectual property rights, Japan 
Customs initiates a procedure to determine whether the  good infringes intellectual property rights.  
Upon initiation, Japan Customs notifies the right holder and the importer of the good of the 
initiation of the procedure. During the process, the right holder and the importer are given 
opportunities to submit their opinion and/or evidence on the case. Based on the opinion and/or 
evidence, Japan Customs determines whether the good for importation infringes intellectual 
property rights.  This procedure is compliant with Article 51 of TRIPS Agreement (This procedur e is 
called "identification procedure" and the similar procedure is applicable to the exportation of 
goods).  
For more details on this procedures, please refer to the following website:  
http://www.customs.go.jp/mizugiwa/chiteki/pages/c_001_e.htm  WT/TPR/M/351/Add.1  
 
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  6. De conf ormidad con la página 102, párrafo 4.15, "El Japón aplicó varias veces la salvaguardia 
especial basada en el volumen o en los precios a importaciones de diversos productos fuera del 
contingente". ¿Podría informarnos Japón cómo esa salvaguardia se ajusta a las prescripciones del 
Acuerdo sobre la Agricultura, que determina que no se podrán aplicar derechos adicionales a las 
importaciones realizadas en el marco de contingentes arancelarios?  
 
RESPONSE  
The Government of Japan does not apply SSG to any goods impo rted under TRQ, in accordance 
with Article 5 of the Agreement on Agriculture  
 
7. De conformidad a la página 103, párrafo 4.18: "Con arreglo al sistema de compra y venta 
simultáneas de arroz y trigo, un importador y un usuario nacional presentan una oferta conjunta al 
MAFF, en la que especifican el precio de compra por el Gobierno al importador y el precio de venta 
por el Gobierno en el mercado interno. El Ministerio cobra la diferencia entre esos dos precios." 
Según lo expuesto, parecería que ese sistema se  trata de un mecanismo de sostenimiento de los 
precios. En ese sentido, ¿en qué casos y quienes pagan la diferencia entre los dos precios?, ¿qué 
sucede cuando el precio de las importaciones es mayor al precio que se vende en el mercado 
interno? y ¿Bajo qué  disposiciones en materia de ayuda interna Japón ha notificado esa medida?  
 
RESPONSE  
1. The difference between the buying price and selling price (mark -up) is collected by the 
government as a result of the transaction through which the government (State Tr ading 
Enterprise) purchases imported rice and wheat from an importer, and simultaneously sells it to a 
domestic user at bidding price.  
 
2. Rice and wheat is imported at a competitive bidding price, irrespective of the trading price in 
the domestic market.  
 
3. MAFF as State Trading Enterprise collects the mark -up according to the WTO Agreements and 
Japan 's tariff schedule. The government of Japan submits notifications on the state trading to the 
WTO (see G/STR/N/16/JPN).  
 
 
8. De conformidad a la página 106,  párrafo 4.35: "Los importadores, los mayoristas y los 
minoristas de cigarrillos deben registrarse en el Ministerio de Hacienda, que debe aprobar los 
precios finales al por menor. Aunque los productos del tabaco están sujetos a impuestos 
especiales, alguna s marcas, todas ellas propiedad de Japan Tobacco, están sujetas a tipos más 
bajos". ¿Podría informarnos Japón cómo esa diferencia de impuesto, más bajos para los productos 
de Japan Tobacco, empresa comercial del Estado, se ajusta a las disposiciones de no 
discriminación, cuando se tratan, por un lado, de productos importados similares y, por otra parte, 
los de producción nacional?  
 
RESPONSE  
In order to ensure compliance with the provisions concerning "national treatment" , the preferential 
tax treatment for "former third class cigarettes"  was phased out from April 2016 as part of the 
"FY2015 Tax Reform". The detail of the phasing out is as below.  WT/TPR/M/351/Add.1  
 
- 223 - 
 
  
　（Note）The above rate is a total tax rate of tobacco tax, supecial tobacco tax, prefectural tobacco tax and municipal tobacco tax.6,812yen/1,000pcs7,812yen/1,000pcs9,312yen/1,000pcs12,244yen /1,000pcs
4,0005,0006,0007,0008,0009,00010,00011,00012,00013,00014,000
27 28 29 30 31 32Difference
6,432yen/1,000pcs
（128.64yen/pack ）Other cigarettes
Former third class cigarettes（Yen/1,000pcs ）
Phasing out the Preferential Tax Treatment for Former Third Class Cigarettes
+1,000yen/1,000pcs （20yen/pack ）12,244yen/1,000pcs
（244.88yen/pack ）
5,812yen/1,000pcs
（116.24yen/pack ）
2015.4.1 2016.4.1 2017.4.1 2018.4.1 2019.4.1+1,500yen/1,000pcs （30yen/pack ）+2,932yen/1,000pcs
（58.64yen/pack ）
+1,000yen/1,000pcs （20yen/pack ） 
 
 
PREGUNTAS ADICIONALE S DE ECUADOR  
Informe de la Secretaría de la OMC. - 
 
 
1. En el numeral 3.3.8 . literal 3.153. , se menciona que "se estableció la Norma de Etiquetado de 
Productos Alimenticios,  en la que se prescriben  requisitos de etiquetado específicos".  
 
Pregunta de Ecuador:  Se solicita se especifique si dicha Norma hace referencia a productos 
alimenticios para  animales, de ser el caso, cuales son los requisitos para el etiquetado.  
 
RESPONSE  
Animal feed is not covered by the Food Labelling Standards (Ordinance of the Cabinet Office No.10 
of 2015) . 
 
2. El numeral 3.149. describe, "De conformidad con la Ley sobre Condiciones Sanitarias de los 
Alimentos, los alimentos  importados pueden quedar exentos de la inspección en el momento de su 
importación en el Japón  si ya han sido inspeccionados por una organización oficial de inspección en 
el país exportador y  van acompa ñados del resultado de la inspección. (...).  Las organizaciones de 
inspección deben inscribirse en el registro oficial del Japón por conducto del  Gobierno del país 
exportador".  
 
Pregunta de Ecuador:  Se solicita se aclare si lo descrito aplica para aliment os para animales, y 
de ser el caso, cuál es el procedimiento para el registro del organismo de inspección.  
 
RESPONSE  
The Food Sanitation Act, which is mentioned in 3.149, is not applicable to animal feed imported 
from abroad to Japan.  
 
3. El numeral 3.10 . Describe "En el caso de las exportaciones, la declaración de exportación debe 
ir acompañada de  documentos justificantes, como facturas, permisos, aprobaciones o licencias. 
Cuando las mercancías llegan a la zona hozei, se realiza el necesario examen físico y, 
posteriormente, los exportadores reciben un permiso de exportación. Los exportadores también WT/TPR/M/351/Add.1  
 
- 224 - 
 
  pueden presentar una declaración de exportación antes de que las mercancías lleguen a la zona 
hozei".  
 
Pregunta de Ecuador:  Se solicita se describa que es una zona hozei; además de describir cuáles 
son los permisos sanitarios con los que cuenta un producto para exportación.  
 
RESPONSE  
<Hozei Area>  
"Hozei area", or bonded area, is a facility designated or approved as an area to store import 
cargos pending payment of duties and taxes (hereinafter referred to as "foreign cargos"), as well 
as cargos for exportation. In principle, importers and exporters receive import/export permission 
after their cargos are brought into a hozei area. Other than storage, hozei areas h ave different 
functions according to the type of facility. Please see the table below for more details.  
 
Types  Principal functions  Length of storage  
(1) Designated customs 
area Loading/unloading, transport and temporary 
storage of foreign cargo and cargos  for 
exportation  1 month  
(2) Bonded storage location  Loading/unloading, transport and long -term 
storage of foreign cargo  2 years (may be extended)  
(3) Bonded factory  Processing and manufacturing using foreign 
cargo as material  2 years (may be extended)  
(4) Bonded exhibition area  Display and use of foreign cargo  Length of time designated by 
the Director -General of 
regional customs  
(5) Integrated customs area  Loading/unloading, transport long -term 
storage, processing & manufacturing and 
exhibition of fore ign cargo  2 years (may be extended)  
 
< Health certificates  > 
Health certificates required for submission at the time of export declaration are as follows:  
 
(i) Food safety  
Health certificates for foods of animal origin are documents issued by the Ministry  of Health, 
Labour and Welfare, and verify the safety of foods for exportation from Japan. They are issued at 
the request of the destination country/territory of such foods.  
 
(ii) Animal health and plant protection  
Health certificates for animal health and  plant protection are documents issued by the Ministry of 
Agriculture, Forestry and Fisheries, and verify that the products for exportation from Japan are 
free from certain pathogens or pests. They are issued at the request of the destination 
country/terri tory of such products.  
 
 
4. En numeral 3.60 . Se menciona "En virtud de la Ley de Aduanas, se aplican prohibiciones de 
exportación a una gama  limitada de productos: estupefacientes y otros fármacos".  
 
Pregunta de Ecuador:  Por favor, se solicita se describa cuáles son los estupefacientes y 
fármacos (principios activos) que se encuentran prohibidos para su exportación.  
 
RESPONSE  
Narcotics, and certain other drugs whose exportation is prohibited in principle under the Customs 
Law (Article 69 -2), include: psycho tropic substances, cannabis, opium, poppy straw, and 
stimulants ( including their raw materials).  
 
<Customs Law Article 69 -2 (Articles the exportation of which is prohibited) (excerpt)>  
The exportation of the following articles is prohibited:  
(i) narcotic d rugs, psychotropic substances, cannabis, opium, poppy straw, and stimulants 
(including raw materials thereof as referred to in the Stimulant Drug Control Act (Act No. 252 of 
1951)), except for those exported by the Government, or by an entity that is autho rized to export 
by other relevant laws and regulations;  
 
For details of the Control Act regarding each type of illicit drugs, please refer to the following 
URLs;  WT/TPR/M/351/Add.1  
 
- 225 - 
 
  <Narcotics and Psychotropics Control Act (Act No. 14 of 1953)>  
http://www.japaneselawtranslati on.go.jp/law/detail/?ft=1&re=01&dn=1&co=01&ia=03&x=73&y=
24&ky=%E9%BA%BB%E8%96%AC%E5%8F%8A%E3%81%B3%E5%90%91%E7%B2%BE%E7%
A5%9E%E8%96%AC%E5%8F%96%E7%B7%A0%E6%B3%95&page=12 . 
 
<Opium Control Act (Act No. 71 of 1954)>  
http://law.e -gov.go.jp/htmldata/S29/S29HO07 1.html  (Japanese only)  
 
<Cannabis Control Act (Act No. 124 of 1948)>  
http://www.japaneselawtranslation.go.jp/law/detail/?id=2594&vm=&re = 
 
<Stimulants Control Act (Act No. 252 of 1951)>  
http://www.japaneselawtranslation.go.jp/law/detail/?re=01&dn=1&x=54&y=1 7&co=1&ia=03&yo
=&gn=&sy=&ht=&no=&bu=&ta=&ky=%E8%A6%9A%E3%81%9B%E3%81%84%E5%89%A4&pa
ge=5 . 
 
5. En cuadro 3.18 sobre reglamentos técnicos: Describe la Ley sobre la Normalización, etc. de 
los Productos Agrícolas y Forestales Ministerio de Agricultura, Silvicul tura y Pesca s obre productos 
forestales.  
 
Pregunta de Ecuador:  Se quisiera conocer cuáles son las normas técnicas que Japón adopta para 
la importación de productos forestales y si existe restricción fitosanitaria para estos productos en 
Japón.  
 
RESPONSE  
Though there are some Japanese Agricultural Standards for forestry products, these standards are 
voluntary standards that are not technical criteria for import.  
 
Forestry products such as wood, wood chips and nuts are subject to an import plant quarantine. 
Phytosanitary requirements depend on the species and parts of the plant, and therefore Japan 
would like you to refer to the Database for Import Conditions for details.  
Manufactured products such as sawn wood, preservative wood and furniture and wood packag ing 
material which is treated and marked according to the provisions of ISPM 15 ( Regulation of wood 
packaging material in international trade ), are not subject to import plant quarantine.  
 
Database for Import Conditions:  
http://www.pps.go.jp/eximlist/Pages /exp/conditionE.xhtml.  
 
6. Página 11; sección Resumen; párrafo 15: El Japón prohíbe actualmente la importación de 
carne de bovino y aves de corral procedentes de diversos países para impedir la propagación de 
determinadas enfermedades animales, incluidas l a EEB y la gripe aviar.  
 
OBSERVACIÓN ECUADOR: ¿Se tiene una lista de países con restricción de importación por 
enfermedades?  
 
RESPONSE  
The lists of countries from which the Government of Japan prohibits import of live animals and 
their products, in order t o prevent the invasion of animal infectious diseases, are as follows:  
 
(Cloven -hoofed animals and their products)  
 Targeted diseases: Rinderpest, Foot and mouth disease, African swine fever:  
 http://www.maff.go.jp/aqs/english/news/im_prohibit.html . 
 
Addin g to the above, the countries* from which Japan prohibits import of cattle, sheep and goats, 
and their products, due to the occurrence of BSE, are as listed below:  
http://www.maff.go.jp/aqs/english/news/bse.html . 
 
*Note: The countries listed in the followi ng link can export beef that are treated in accordance with 
specific conditions to Japan:  
http://www.maff.go.jp/aqs/english/news/eligible -bse-country.html . 
 
(Poultry and their products)  WT/TPR/M/351/Add.1  
 
- 226 - 
 
  Targeted diseases: Highly pathogenic avian influenza, Low pathogenic avian influenza:  
http://www.maff.go.jp/aqs/english/news/hpai.html . 
 
7. Página 69; Párrafo 3.133. No es obligatorio atenerse a las normas agrícolas para importar 
productos agrícolas en el Japón, con la excepción de los vegetales de cultivo ecológico y los 
productos alimenticios ecológicos elaborados de origen vegetal.  
 
OBSERVACIÓN ECUADOR: ¿De no ser obligatorio atenerse a las normas agrícolas para la 
importación de productos, es el importador quien determina su aplicación?  
 
RESPONSE  
In order to sell organic  plants and organic processed food of plant origin with "organic" label in 
Japan, business operators need to be certified under Japanese Agricultural Standards (JAS) 
system, and to attach organic the JAS logo on organic products that are produced or proces sed in 
compliance with the JAS organic requirements. On the other hand, when business operators sell 
organic plants and organic processed food of plant origin without the "organic" label in Japan, JAS 
certification is not required, and it depends on busine ss operators (including importers) whether 
they follow the organic JAS or not.  
 
8. Página 70; Párrafo 3.140: Las MSF del Japón siguen siendo competencia del MAFF, el MHLW 
y la Comisión de Inocuidad de los Alimentos. El servicio de información y el organism o nacional 
encargado de las notificaciones con arreglo al Acuerdo MSF sigue siendo el Servicio de Información 
sobre Normas de la División de Comercio Internacional, que depende de la Oficina de Asuntos 
Económicos del Ministerio de Relaciones Exteriores. El  procedimiento para establecer MSF tampoco 
cambió durante el período objeto de examen.  
 
OBSERVACIÓN ECUADOR: ¿El desarrollo de nuevas notificaciones, específicamente al 
establecimiento de medidas sanitarias a la importación de productos agrícolas y pecuari os fue 
realizado durante el periodo objeto de examen?  
 
RESPONSE  
Japan notified 115 SPS measures from 12 Mar 2015 to 20 Feb 2017, and 110 of them were about 
agricultural and livestock products.  
 
9. Página 71; cuadro 3.20 Principales leyes relacionadas con las MSF  
 
OBSERVACIÓN ECUADOR:  
¿La Ley Básica sobre Inocuidad de los Alimentos, incluye el establecimiento de nuevos LMR para 
los productos agrícolas y pecuarios? De ser el caso, cuál sería la última modificación?  
 
RESPONSE  
The Ministry of Health, Labour an d Welfare (MHLW) sets food standards (i.e. pesticide residue, 
food additive, etc.) for ensuring food safety and public health, under the Food Sanitation Act, not 
the Food Safety Basic Act. The Government of Japan notifies WTO of its proposed SPS measures i n 
accordance with the SPS Agreement. The latest Japan 's MRLs for agricultural chemicals in foods 
are available at: http://m5.ws001.squarestart.ne.jp/foundation/search.html . 
 
10. Página 71; Párrafo 3.145. Se han establecido o revisado normas relativas a los  siguientes 
residuos de agroquímicos y aditivos para piensos: glufosinato (establecida el 8 de enero de 
2014)104, pendimetalina (11 de junio de 2014)105, nitrato de sodio y melamina (20 de agosto de 
2014)106, dicamba (27 de julio de 2015)107, monensina sód ica y avilamicina (7 de diciembre de 
2015), alacloro (18 de diciembre de 2015)108, fentión (18 de diciembre de 2015)109, aldicarb (18 
de diciembre de 2015)110, imazapic (18 de diciembre de 2015)111, imazapir (18 de diciembre de 
2015)112 y 25 -hidroxicolecal ciferol (23 de marzo de 2016).113  
 
OBSERVACIÓN ECUADOR: ¿Cuál es el método de socialización a los demás Miembros acerca del 
contenido e implementación de las normas detalladas en el párrafo 3.145?  
RESPONSE  
Japan has notified its SPS measures in accordance  with the SPS Agreement, and related decisions 
and recommendations. When adopted, the MRLs are to be published in Kampo (Official 
Government Gazette) (available in Japanese). The current MRLs list for feed is available at the 
following website (available i n English):  WT/TPR/M/351/Add.1  
 
- 227 - 
 
  http://www.famic.go.jp/ffis/feed/r_safety/r_feeds_safety.html . 
 
11. Página 71; Párrafo 3.147. En cuanto a las medidas relativas a la inocuidad de los alimentos, 
en el Japón se aplican normas sobre residuos a más de 800 plaguicidas y se ha autor izado la 
utilización de al menos 800 aditivos alimentarios. Según las autoridades, resulta muy difícil 
confirmar que todas esas sustancias cumplen las normas internacionales. Si bien el MHLW tiene en 
cuenta las normas del Codex en sus evaluaciones del ries go, en los productos alimenticios y las 
bebidas vendidos en el Japón solo pueden utilizarse los aditivos que hayan sido examinados por la 
Comisión de Inocuidad de los Alimentos y autorizados por el Ministerio mencionado. Este es el 
planteamiento aplicado h abitualmente, no solo respecto de los aditivos alimentarios sino al 
establecer todos los tipos de normas alimentarias.  
 
OBSERVACIÓN ECUADOR:  
Al considerar las normas del Codex en sus evaluaciones del riesgo. ¿Cuál es el examen científico y 
como se ejecuta el mismo, para la determinación de normas que establecen los LMR para los 
plaguicidas?  
¿Cuál es el método de aplicación de las 800 normas sobre residuos de plaguicidas a los productos 
importados desde distintos destinos? ¿Difiere por destino, difiere por producto?  
¿Estas normas están armonizadas con otras normas internacionales? ¿Todas las 800 normas se 
consideran normas agrícolas?  
 
RESPONSE  
The Ministry of Health, Labour and Welfare of Japan (MHLW) establishes maximum residue limits 
(MRLs) for agricultura l chemicals, including veterinary drugs and pesticides, and takes other risk 
management measures in order to protect consumers ' health, on the basis of the scientific 
evidence and risk assessment conducted by the Food Safety Commission of Japan (FSCJ), the  
national risk assessment body.  
The MHLW elaborates MRLs for agricultural chemicals in food based on GAP information, residue 
trial data and other scientific data, taking into account Codex MRLs and other countries ' MRLs.  
 
Any food (including imported fo od) is not permitted to be marketed in Japan unless it complies 
with the established standards, under the Food Sanitation Act.  
 
The application of veterinary drugs and pesticides to imported products is indicated below.  
At the time of importation, monitori ng inspection of residual veterinary drugs and pesticides in 
imported foods is conducted.  
Inspection items are selected for each food commodity (vegetables, fruits, grains, beans, seeds, 
tea, spices) for each fiscal year, taking into account cases where v eterinary drugs or pesticides 
were detected in foreign countries, and that violations of the Food Sanitation Act occurred at the 
time of importing in the past. In FY2016, about 370 items are inspected.  
In case of occurrence of food safety problems in forei gn countries, and violation of the Food 
Sanitation Act in monitoring inspection, inspections are carried out on inspection items, combined 
with the relevant countries and food commodities.  
 
 
12. Página 101; Sección 4.1.2.1. Párrafo 4.7  
El Ministerio de Agr icultura, Silvicultura y Pesca (MAFF) se encarga de la política agrícola. El 
Ministerio consta de varias divisiones que se ocupan de todos los aspectos de la agricultura (así 
como de la silvicultura y la pesca), incluidas la política y las negociaciones co merciales 
relacionadas con los productos agrícolas, la administración de los contingentes arancelarios, las 
estadísticas, la supervisión del mercado interno, los seguros agrícolas, las medidas sanitarias y 
fitosanitarias (MSF) y los obstáculos técnicos al comercio (OTC) relacionados con la agricultura, y 
la supervisión y promoción de las actividades de I+D realizadas en el marco del Consejo de 
Investigación Agrícola, Forestal y Pesquera.  
 
OBSERVACIÓN ECUADOR:  
En este párrafo se menciona sobre la política a grícola, sin embargo en los párrafos siguientes se 
detalla brevemente sobre el Plan Básico de Alimentación, Agricultura y Zonas Rurales. En ese 
sentido se quisiera conocer a detalle sobre las demás políticas aplicadas que están relacionadas 
con las medidas  sanitarias y fitosanitarias, obstáculos al comercio relacionados con la agricultura, 
y negociaciones comerciales. Esto con la finalidad de contribuir con la apertura de mercados hacia 
Japón.  WT/TPR/M/351/Add.1  
 
- 228 - 
 
  RESPONSE  
The SPS measures taken by the Government of Japan are in accordance with SPS Agreement. 
Please refer to 3.3.7 of the Report by the Secretariat.  
The Government of Japan is engaged in FTA/EPA and WTO negotiations from the standpoint of a 
net food -importing country, aiming to establish trade rules that enable th e mutual development of 
agriculture in each country.  
 
13. Página 100; Sección 4.1.1 Comercio  
 
OBSERVACIÓN ECUADOR:  
En toda la sección se encuentran tablas con los principales productos agropecuarios de exportación 
e importación, así una explicación sobre e l déficit del comercio de productos agrícolas, sin 
embargo solo se hace referencia a Estados Unidos, se podría otorgar más informaci ón sobre los 
demás países?  
 
RESPONSE  
Chapter 4.1.1 of the Secretariat 's Report describes Japan 's trade situation in agricult ural goods not 
just with the U.S. but with the world  
 
14. De conformidad a la página 40, párrafo 3.33, en relación a los "productos designados de 
mercurio" y "productos designados que contienen mercurio", ¿podría indicarnos Japón cuándo 
entraría en vigenci a las prescripciones en materia de licencias de importación para esos productos, 
así como cuáles son los productos de cerámica sujetos a licencia de importación?  
 
RESPONSE  
Import approval of specified mercury -added products will be enforced for each produc t from 
January 2018 or December 2020. For the enforcement date for each product, please refer to our 
website below (only Japanese):  
http://www.meti.go.jp/policy/external_economy/trade_control/02_exandim/08_minamata/downlo
ad/20151111_tsutatsu_yunyu_suiginsh iyoseihin.pdf . 
Ceramics products do not require import approval.  
 
15. De conformidad a la página 40, párrafo 3.35: "Los solicitantes de contingentes deben cumplir 
diversos criterios". ¿Podría indicarnos Japón a qué criterios se refieren, cómo se los determ ina y en 
cuánto tiempo se asigna un contingente desde su solicitud?  
 
RESPONSE  
In principle, importers need to meet any of the following three conditions to be qualified for 
application:  
(1) an importer who has experience of obtaining certificate of import quota and of importing the 
items based on the certificate of import quota;  
(2) an importer who imports materials for food processing with orders from seafood processors ' 
associations which are admitted by the Fisheries Agency; or  
(3) an importer who has ex perience of importing foods and imports items subject to import quota 
with a planned manner.  
Each quota has its own criteria and requirements on the application, and the quantity of each 
quota allocation is determined fairly according to the applicant 's import experience basically.  
A certificate of import quota is normally valid for six months.  
Please refer to the import quota announcements of marine products which explain in detail the 
standards and procedures to obtain the import quotas, published on th e following METI Website.  
http://www.meti.go.jp/policy/external_economy/trade_control/03_import/04_suisan/importquota.
html (Japanese only)  
 
 
28. PARAGUAY  
 El punto 4.90 menciona sanciones a los bancos extranjeros que no cumplen con lo exigido 
por la nueva L ey para mantener un determinado porcentaje de activo en Japón. Se 
consulta a la delegación de Japón sobre el impacto que tuvo dicha medida en el mercado 
financiero.  
 WT/TPR/M/351/Add.1  
 
- 229 - 
 
  RESPONSE  
The amendment described in paragraph 4.90 is to require a foreign bank branch to maintain 
assets in Japan equivalent to the amount of minimum capital of domestic banks (2 billion yen), 
and the raised penalty is for the violation of this requirement, which is not relevant for any of the 
capital adequacy requirements. The Financial Servi ces Agency does not consider that this revision 
has adversely affected any part of the global financial market.  
 
 Sobre el punto 4.94 nos interesaría conocer si existen algunas acciones del gobierno para 
ampliar la cuota al capital extranjero?  
 
RESPONSE  
As the Telecommunication Business Act regulating the entry of telecommunication service 
suppliers has no restrictions on foreign investment, foreign entities can enter Japanese market.  
 
 En el punto 4.106 se describe una liberalización comercial en el sector de audiovisuales. 
Agradeceríamos contar con más información sobre el impacto en el crecimiento de ese 
sector de servicios, así como sobre la necesidad (o no) de brindar apoyo a nuevos 
productos o contenidos.  
 
RESPONSE  
At present, the Government of Japan ha s no specific information on the impact brought by the 
growth of audiovisual sector.  
 
 En el punto 4.6.3.2 se describe limitaciones para las empresas extranjeras en materia de TV 
y radio. ¿Piensa Japón eliminar dichas limitaciones o cuotas de manera a incen tivar la 
entrada de empresas extranjeras en dicho sector?  
 
RESPONSE  
Such measures are not subject to consideration.  
 
 
29. ARGENTINA  
"1.- Con relación al G/SPS/N/JPN/471 presentado el 4 de agosto de 2016 que notifica sobre la 
prohibición de importación de p roductos lácteos sin un certificado emitido por autoridad sanitaria 
competente  
¿En qué principios científicos se basa la modificación de la norma que entrará en vigor en 
noviembre de 2017?  
 
RESPONSE  
Please note the chapter for FMD of OIE code (Article8. 8.  24, 25 in the 2016 version of the code, 
http://www.oie.int/fileadmin/Home/eng/Health_standards/tahc/current/chapitre_fmd.pdf ), which 
specifies that ''Veterinary Authorities should require the presentation of an international veterinary 
certificate '' on th e occasion of import of milk products, regardless of the exporting countries ' FMD 
status.  
On top of that, an independent experts group (the Animal Health Committee) conducted the risk 
assessment on the importation of milk products, and concluded that milk products should be 
added to the designated items that are subject to animal quarantine, and require the veterinary 
certificate for importation into Japan.  
2.- ¿Qué cambios se implementarán en relación con la revisión de los requerimientos para la 
graduació n en el Sistema Generalizado de Preferencias a fines del año fiscal 2017? ¿En qué se 
motiva la modificación y cómo afecta a los actuales beneficiarios del sistema?  
 
RESPONSE  
The current review concluded that some of the existing GSP beneficiaries, which ha d achieved a 
certain level of income and acquired exporting competitiveness on a global scale, as a result of 
their economic development, would be subject to the Graduation.  The purpose of the review is to 
provide GSP 's benefits to countries that are more in need.  
Under the current scheme, countries/territories that have been classified as high income 
economies for three consecutive years according to the World Bank 's income classification are 
excluded  from the list of GSP beneficiaries.  WT/TPR/M/351/Add.1  
 
- 230 - 
 
  From April 2019, t he countries/territories that have satisfied either (1) or (2) below for three 
consecutive years will be excluded from the list:  
(1) Countries/territories that are classified as high income economies according to the World Bank 
income classification.  
(2) Countries/territories that satisfy both (a) and (b) below:  
  (a) Countries/territories that are classified as upper -middle income economies according to the 
World Bank income classification.  
  (b) Countries/territories that have a 1% or greater share of wor ld exports according to the World 
Trade Organization 's statistics.  
 
3.- En el último Plan Básico para Alimentos, Agricultura y Areas Rurales (marzo, 2015) [Basic Plan 
for Food, Agriculture and Rural Areas] se menciona la posibilidad de "mejorar notablement e la 
productividad [agrícola] aplicando la tecnología de avanzada de Japón, tales como la robótica y las 
tecnologías de la información y comunicación". En tal sentido:  
¿Hay planes de implementar subsidios para los nuevos desarrollos tecnológicos para el se ctor 
agrícola? ¿Podría brindar información detallada al respecto?  
 
RESPONSE  
The Government of Japan has formulated the Basic Plan for Agriculture, Forestry and Fisheries 
Research every five years from FY2005, together with the planning and timing of the Ba sic Plan for 
Food, Agriculture and Rural Areas.  
The Government of Japan has been promoting agricultural, forestry and fisheries research in the 
following ways: For research and development that requires comprehensive and systematic 
approaches using a wide range of expertise of researchers nationwide, or research and 
development projects requiring large amounts of research resources and a long -term perspective, 
budgets are allocated using the commissioned project study category.  
 
4.- Se ha hecho pública la e xistencia de planes del Ministerio de Agricultura, Silvicultura y Pesca de 
Japón (MAFF) en conjunto con la Agencia de Consumidores (CAA) orientados a establecer un 
sistema de etiquetado que incluya la mención del país de origen de la materia prima para los  
productos alimentarios elaborados. En tal sentido:  
¿Se implementará una norma específica al respecto?  
¿En qué se fundamentaría el establecimiento del sistema de etiquetado?  
¿Cuál es su objetivo?  
¿Cuáles serán los umbrales mínimos de aplicación?  
 
RESPONSE  
With regard to the origin of ingredient labelling system of processed foods, the Advisory committee 
for origin labelling system of processed food had been held since January 2016. This advisory 
committee published their report in November 2016.  
Based on t his report, with the aim to provide consumer information, the Government of Japan 
intends to revise the Food Labelling Standards (Ordinance of the Cabinet Office No.10 of 2015), in 
order that all processed foods domestically produced are to be required for  labelling of place of 
origin for the largest ingredients by weight in the final product. But the rules remain completely 
unchanged for imported processed foods, which require labelling of country of origin . 
 
5.- ¿En qué principios científicos se basa la p rohibición de importar carne bovina de países libres 
de fiebre aftosa con vacunación reconocidos con ese carácter por la OIE?"  
 
RESPONSE  
The Government of Japan takes SPS measures based on recommendations by the OIE.  
In response to a request from the compe tent authority of a foreign country to lift a ban on beef or 
pork import, the Government of Japan conducts a risk assessment on entry of the FMD into Japan, 
in accordance with the designated procedure. Based on the result of the risk assessment, the 
Govern ment of Japan is to establish import requirements, and then lift the ban on the import. 
Please be noted that the risk assessment procedure of the Government of Japan conforms to 
Chapter 2.1. of the OIE Terrestrial Code.  
Currently, the Government of Japan i s conducting a risk assessment on the import of fresh meat 
from an FMD free country, where vaccination is practiced, namely Uruguay, while the Government 
of Japan does not allow the import of beef or pork from such countries or zones where vaccination 
is practiced at the moment . 
 WT/TPR/M/351/Add.1  
 
- 231 - 
 
  Additional questions from Argentina  
 
A.11-a: In principle, importers need to meet any of the following three conditions to be qualified 
for application:  
(1) an importer who has experience of obtaining certificate of import quota an d of importing the 
items based on the certificate of import quota;  
(2) an importer who imports materials for food processing with  orders from seafood processors'  
associations which are admitted by Fisheries Agency; or  
(3) an importer who has experience of importing foods and imports items subject to import quota 
with a planned manner.  
Each quota has its own criteria and requirements on the application, and the quantity of each 
quota allocation is determined fairly according to the applicant 's import experi ence basically.  
Please refer to the import quota announcements of marine products which explain in detail the 
standards and procedures to obtain the import quotas, published on the following METI Website.  
http://www.meti.go.jp/policy/external_economy/trad e_control/03_import/04_suisan/importquota.
html (Japanese only)  
 
RESPONSE  
A.11-b: There is no plan to revise the import quota system.  
Quantitative import restrictions (import quotas) play an important role in the conservation and 
management of fishery resou rces in waters adjacent to Japan. This system is consistent with the 
1994 GATT (Articles XI 2(c) and XX (g)), and was notified to the WTO. Japan will continue to 
implement this system in an appropriate manner.  
 
Q4. In paragraph 4.9 it is mentioned that Jap an's agricultural policy continues to emphasize self -
sufficiency. How efforts conducted towards achieving self -sufficiency can be reconciled with the 
objective of achieving "substantial progressive reductions in support and protection" to agrarian 
products  as envisaged in article 20 of the WTO Agreement on Agriculture?  
 
RESPONSE  
The Food, Agriculture and Rural Areas Basic Plan, adopted in March 2015, sets self -sufficiency ratio 
targets for FY2025 of 45% for the calorie supply basis and 73% on the production  value basis. To 
achieve these targets, the Government of Japan implements; (1) promoting consumption of 
domestic agricultural products both in the domestic and foreign markets, (2) encouraging 
agricultural production more responsive to consumers ' needs, a nd (3) supporting core farmers, 
and other related measures based on the Basic Plan. Through these policy measures, demand for 
the Japanese agricultural products is expected to expand, and Japanese agricultural sector is 
expected to be able to meet the dive rse demand by agricultural production more responsive to 
consumers ' needs.  
These measures are implemented in a manner consistent with the WTO Agr eement on Agriculture 
and Japan' s commitment on domestic support.  
 
Q6. In paragraphs 4.44 and 4.45 it is indica ted that the OECD Producer Support Estimate (PSE) 
and the Total Support Estimate have decreased in 2015. Is this a deliberate result of policy or is it 
market related?"  
RESPONSE  
It is conceivable that the declining of the OECD Producer Support Estimate (PS E) in 2015, 
mentioned in paragraphs 4.44 and 4.45 of the report by the Secretariat, is due to both deliberate 
result of policy and market related reasons including exchange rate.  
 
 
ADDITIONAL ANSWERS  - ARGENTINA  
"1.- Con relación al G/SPS/N/JPN/471 present ado el 4 de agosto de 2016 que notifica sobre la 
prohibición de importación de productos lácteos sin un certificado emitido por autoridad sanitaria 
competente  
¿En qué principios científicos se basa la modificación de la norma que entrará en vigor en 
noviem bre de 2017?  
 
2.- ¿Qué cambios se implementarán en relación con la revisión de los requerimientos para la 
graduación en el Sistema Generalizado de Preferencias a fines del año fiscal 2017? ¿En qué se 
motiva la modificación y cómo afecta a los actuales bene ficiarios del sistema?  WT/TPR/M/351/Add.1  
 
- 232 - 
 
  3.- En el último Plan Básico para Alimentos, Agricultura y Areas Rurales (marzo, 2015) [Basic Plan 
for Food, Agriculture and Rural Areas] se menciona la posibilidad de "mejorar notablemente la 
productividad [agrícola] aplicando la te cnología de avanzada de Japón, tales como la robótica y las 
tecnologías de la información y comunicación". En tal sentido:  
¿Hay planes de implementar subsidios para los nuevos desarrollos tecnológicos para el sector 
agrícola? ¿Podría brindar información de tallada al respecto?  
 
4.- Se ha hecho pública la existencia de planes del Ministerio de Agricultura, Silvicultura y Pesca de 
Japón (MAFF) en conjunto con la Agencia de Consumidores (CAA) orientados a establecer un 
sistema de etiquetado que incluya la menci ón del país de origen de la materia prima para los 
productos alimentarios elaborados. En tal sentido:  
¿Se implementará una norma específica al respecto?  
¿En qué se fundamentaría el establecimiento del sistema de etiquetado?  
¿Cuál es su objetivo?  
¿Cuáles se rán los umbrales mínimos de aplicación?  
 
5.- ¿En qué principios científicos se basa la prohibición de importar carne bovina de países libres 
de fiebre aftosa con vacunación reconocidos con ese carácter por la OIE?"  
 
Preguntas Informe WT/TPR/S/351  
 
 
RÉGIMEN  COMERCIAL Y DE INVERSIONES  
 
Acuerdos regionales y preferenciales  
 
En el párrafo 2.10 del informe se indica que Japón ha firmado, en total, 16 acuerdos regionales y 
la mayoría han entrado en vigor. P or otra parte, en el marco del diálogo bilateral con los  Estados 
Unidos se inició el proceso de aprobación del Acuerdo de Asociación Transpacífico. Sin embargo, el 
cambio de estrategia de EEUU respecto a las negociaciones comerciales, tornan difícil la puesta en 
marcha del TPP.  
 
1. Pregunta: En este contexto, ¿Cu ál será la posición del gobierno e Japón con respecto a este 
acuerdo?   
 
RESPONSE  
The TPP Agreement is intended to establish new common rules for the 21st century in the Asia -
Pacific region and form a huge free and fair economic zone. It also seeks to deepe n and broaden 
economic ties among countries and regions that share fundamental values such as freedom, 
democracy, basic human rights, and the rule of law, and is hence strategically significant in terms 
of pursuing further regional stability. In light of t he significance of the TPP, the government of 
Japan notified the Depositary of the completion of Japan's domestic procedures for the TPP. The 
government of Japan intends to continue to closely consult with other original signatories on the 
future of the TP P and tenaciously encourage them to promptly complete their domestic procedures 
toward the entry into force of the TPP Agreement.  
 
Régimen de inversión  
 
En el párrafo 2.17 se menciona que desde hace varios años s e observa una preocupación por parte 
de Jap ón por atraer Inversión Extranjera Directa (IED), poniéndose en marcha distintas medidas 
orientadas a tal fin.  
 
2. Pregunta:  ¿Podrían indicar cuáles son tales medidas así como también si tienen un objetivo 
específico respecto a sectores, regiones y/o países?  
3.  
RESPONSE  
Currently, Japanese government improves Japan's business and living environment to attract 
foreign investment into Japan, in accordance with the "Five Promises for Attracting Foreign 
Businesses to Japan" and the "Policy Package for Promoting For eign Direct Investment into Japan 
to Make Japan a Global Hub", and Japan Revitalization Strategy.  
In particular, Japanese government is discussing simplification of regulations and administrative 
procedures associated with Foreign Direct Investment in Japa n on the Working Group for Revising WT/TPR/M/351/Add.1  
 
- 233 - 
 
  Regulations and Administrative Procedures, The working group decided the "Immediate Report" in 
last December and will draw the conclusion around this spring.  
These measures don't target any specific countries or regions  
 
En el párrafo 2.24 se explica que las autoridades japonesas establecieron un Consejo de 
Promoción de la IED atendiendo a una recomendación formulada en la "Reunión del Grupo de 
Expertos en IED" en el Japón.  
 
4. Pregunta:  ¿Podrían explicar las característica s y funciones que cumple el Consejo de 
Promoción de la IED?  
 
RESPONSE  
The Council for Promotion of Foreign Direct Investment in Japan, cooperating with other bodies, 
continuously discusses and implements measures, such as regulatory reforms that contribute  to 
the improvement of the investment environment and support measures effective in expanding 
investment.  
Minister of State for Economic and Fiscal Policy chairs this Ministerial  Council  
 
En el párrafo 2.27 se menciona que el Japón mantiene tratados bilate rales sobre inversiones con 
23 países o territorios y 12 acuerdos comerciales bilaterales o regionales que contienen 
disposiciones en materia de inversiones.  
 
5. Pregunta:  ¿Cuáles son los criterios de selección de socios que está aplicando Japón para 
negociar  tales acuerdos?  
 
RESPONSE  
We consider following elements (these elements are not exhaustive) to decide a partner country or 
region of an investment treaty.  
1. Investment track record and prospect for further investment by Japanese enterprises to a 
partn er country or region,  
2. Requests from Japanese business community,  
3. Consistency with the Japanese diplomatic policies, and  
4. Needs and other circumstances of a partner country or region.  
 
6. Pregunta: Teniendo en consideración que en los denominados trata dos de inversión de 
tercera generación se han incluido determinadas disposiciones que representan un "plus" sobre las 
reglas multilaterales vigentes, sería importante que Japón explique si a través de estos acuerdos 
se busca la protección de las inversione s o si los Bit 's se convierten en una herramienta para lograr 
un balance entre la protección y el incremento de las inversiones a largo plazo en esos mercados.  
 
RESPONSE  
Although we are not aware of details of the so -called third generation of internation al investment 
agreements, we choose the optimal investment regime for the protection and the increase of 
investments, taking into account merits and demerits of bilateral and multilateral investment 
scheme  
 
POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
 
Medidas que afectan las importaciones  
 
En el párrafo 3.2, el informe menciona que las autoridades han indicado que las resoluciones 
anticipadas se expiden, en principio, dentro de los 90 días siguientes a la presentación de una 
solicitud de valoración en ad uana y dentro de los 30 días siguientes a la solicitud en los otros 
casos.  
 
7. Pregunta: ¿Podría Japón explicar en qué casos las resoluciones anticipadas pueden demorar 
más de 90 días?  
 
RESPONSE  
Under the circumstances where the form of a transaction was un clear and thus it would require fair 
amount of time to verify the facts that constitute premises for legal interpretation, the issuance of WT/TPR/M/351/Add.1  
 
- 234 - 
 
  an advance ruling would take more than 90 days as a result of thorough review and examination 
of transaction detail  
 
En el párrafo 3.15, el informe explica que el sistema de levante antes de la obtención del permiso 
permite el levante de las mercancías importadas antes de que se haya obtenido el permiso de 
importación, con sujeción al pago de una fianza equivalente a los  derechos previstos para las 
mercancías.  
 
8. Pregunta: ¿Cómo es el procedimiento que deben realizar los comerciantes para obtener el 
beneficio del "levante anticipado"?  
 
RESPONSE  
In addition to the payment of a guarantee equivalent to the expected duties on the goods, 
importers are required to obtain an approval of customs for using the before permission release 
system. In order to obtain an approval, they must lodge an application, which contains the 
following information on the goods for which they wish to apply the system: the name and 
quantity of the goods; and the date of lodging an import declaration for the goods and the reason 
for the application . 
 
En el párrafo 3.16 se menciona que en el marco de su sistema de gestión del riesgo, la 
Administración de Aduanas realiza auditorías posteriores al despacho..  
 
9. Pregunta: ¿Podrían indicar en qué casos la Administración de Aduanas realiza este tipo de 
auditorías?  
 
RESPONSE  
Japan Customs selects importers for post -clearance audit in a risk -based manner, accordi ng to 
selectivity criteria, including their import volume and relevant information contained in their import 
declaration . 
 
En el párrafo 3.17 se referencia que todos los importadores autorizados deben presentar una 
declaración de aduana en cuanto las merca ncías han entrado a la zona "hozei", ahora pueden 
hacerlo bajo determinadas condiciones, de manera electrónica , sin que hayan entrado en dicha 
zona.    
 
10. Pregunta: ¿Cuáles son esas condiciones?  
 
RESPONSE  
Importers can file a customs declaration without entr y of goods into a bonded area, where, for 
example, an importer is an AEO importer, or an importer has obtained prior approval from 
customs on his/her intention to receive an import permission from customs while their goods for 
importation remain on board a  foreign trading vessel.  
 
De acuerdo al informe de examen, Japón posee 158 líneas arancelarias sin consolidar, las cuales 
comprenden principalmente productos de la pesca (pescado, crustáceos, algas), aceites de 
petróleo, y madera y manufacturas de madera.  
 
11. Pregunta:  ¿Cuáles son los motivos por los cuales el gobierno de Japón no consolida las 
líneas arancelarias mencionadas?  
 
RESPONSE  
Since tariff -binding is a matter of trade negotiation, and not legal -binding except for agriculture 
products, Japan has cer tain number of unbound tariff lines as a result of Uruguay Round 
negotiation, just as other nations do  
 
En el párrafo 3.35 se menciona que los solicitantes de contingentes deben cumplir diversos 
criterios y que el método de asignación no ha cambiado desde 2007, siendo todavía complejo.  
 
12. Preguntas:   a- ¿Cuáles son los criterios que debe cumplir el solicitante para que el 
contingente sea asignado?  
b- Considerando la complejidad que presenta el mecanismo de asignación de acuerdo al informe 
de examen presentado  por la OMC, ¿existe en proyecto una evaluación para su reformulación?  WT/TPR/M/351/Add.1  
 
- 235 - 
 
  RESPONSE  
11-a: In principle, importers need to meet any of the following three conditions to be qualified for 
application:  
(1) an importer who has experience of obtaining certificate of  import quota and of importing the 
items based on the certificate of import quota;  
(2) an importer who imports materials for food processing with orders from seafood processors' 
associations which are admitted by Fisheries Agency; or  
(3) an importer who ha s experience of importing foods and imports items subject to import quota 
with a planned manner.  
Each quota has its own criteria and requirements on the application, and the quantity of each 
quota allocation is determined fairly according to the applicant 's import experience basically.  
Please refer to the import quota announcements of marine products which explain in detail the 
standards and procedures to obtain the import quotas, published on the following METI Website.  
http://www.meti.go.jp/policy/exter nal_economy/trade_control/03_import/04_suisan/importquota.
html (Japanese only)  
 
Q.11-b: There is no plan to revise the import quota system.  
Quantitative import restrictions (import quotas) play an important role in the conservation and 
management of fisher y resources in waters adjacent to Japan. This system is consistent with the 
1994 GATT (Articles XI 2(c) and XX (g)), and was notified to the WTO. Japan will continue to 
implement this system in an appropriate manner  
 
En el párrafo 3.35 del informe dice que  el Japón aplica un sistema de confirmación previa para 
reunir datos sobre determinadas importaciones, que tiene por objeto asegurar que esas 
importaciones estén destinadas a usos específicos y verificar la documentación y los requisitos de 
origen. Se nece sita la confirmación previa del Ministro de Economía, Comercio e Industria, o de 
otros ministros competentes.  
 
13. Pregunta : a-¿Podrían explicar en detalle el funcionamiento de este sistema? ¿Qué 
requisitos y trámites debe cumplir el importador?  
       b-¿Cuál es son los otros ministerios competentes que están facultados a realizar la 
confirmación previa? ¿En qué consiste esta confirmación?  
RESPONSE  
Prior confirmation system is the system that import of the concerned products shall be allowed 
upon submission of documents requested by the laws. This system plays important roles in 
complying with international agreements and contributing to ensure the conservation and 
management of natural resources.  
The competent ministries concerned and the procedures for prior confirmation differ product by 
product.  
Please refer to the announcements which explain in detail the procedures required for prior 
confirmation. They are posted on the following METI Website.  
http://www.meti.go.jp/policy/external_economy/trade_control/04_ kamotsu/02_import/import_sei
do.html (Japanese only)  
 
CONTRATACIÓN PÚBLICA  
 
De acuerdo al informe de examen, entre los principales cambios del año 2016, se implementó un 
"sistema de ofertas múltiples", que habilita que dos o más empresas puedan presentar of ertas en 
caso que una de ellas no pueda satisfacer la totalidad de la cantidad licitada "por si misma".  
 
14. Pregunta:  ¿Qué requisitos deben cumplir estas empresas para participar de este 
sistema? ¿Es necesario que se establezcan como una persona jurídica loc al? 
 
 
RESPONSE  
In May 2016, "multiple -award tendering" became applicable to procurement by the local 
governments listed in Annex 2 of the WTO -GPA. A procuring entity which is a local government, 
when it awards a contract through general competitive bidding  or selective bidding, may apply 
"multiple -award tendering" in cases where it procures excessive quantity of goods for delivery or 
services for supply, in accordance with Article 10 of the Cabinet Order Stipulating the Special 
Procedures for Government Pro curement of Products or Specified Services by a Local Public Entity 
(Cabinet Order No.372 of November 1, 1995).  WT/TPR/M/351/Add.1  
 
- 236 - 
 
  For reference, "multiple -award tendering" has already been introduced for procurement by the 
central government, in accordance with Article 11 of the Cabinet Order Stipulating the Special 
Procedures for Government Procurement of Products or Specified Services by the Central Public 
Entity (Cabinet Order No.300 of November 18, 1980).  
 Both central and sub -central governments can apply "multiple -award tendering" to procurement 
implemented under the GPA. Therefore, conditions for each procurement project, including 
requirements on participation, are defined under the GPA and relevant laws and regulations.  
 
La legislación local prevé que el Gobierno ce ntral seleccione contratistas mediante  contratación 
directa cuando: la naturaleza u objetivos de contratación "no permitan la competencia o esta no 
sea posible o resulte desventajosa debido a la urgencia… o el contrato sea de poca cuantía… " 
 
PROPIEDAD INTE LECTUAL  
 
El informe de examen indica que Japón ha modificado la Ley de Prevención de la Competencia 
Desleal para que los secretos comerciales cuenten con mayor protección.  
 
15. Pregunta : ¿En qué consiste tal modificación en qué medida cuantificada ha aumentad o 
la protección de los secretos comerciales?  
 
RESPONSE  
Under the amended Unfair Competition Prevention Act, the scope of acts subject to criminal 
penalties has been expanded to include following acts:  
 (1) the transfer, import or export of products manufac tured with the wrongf ul use of trade secrets 
(§21(1)ix )); and  
(2) the use or disclosure of trade secrets acquired with the knowledge that there has been an 
intervening improper disclosure with regard to the relevant trade secret by 3rd and subsequent 
acqui rer, for the purpose of wrongful gain, or causing damage to the company that owns them 
(§21(1)( viii)). 
 
The above provision (2) applies to a person who commits the offence outside Japan in connection 
with trade secrets of companies conducting business with in Japan, but the above provision (1) 
does not. (§21(6))  
 
Further information is available at th e below WIPO online information: 
http://www.wipo.int/wipolex/en/text.jsp?file_id=401411 . 
 
En 2014 realizó una reforma legislativa, vigente al año siguiente, que  amplió el ámbito de 
protección respecto de marcas no tradicionales como "color", "sonoras", "movimientos", 
"hologramas" y posición.  
 
16. Pregunta: ¿Qué impacto cuantitativo, en materia de solicitudes, tuvo la ampliación de 
protección respecto de los nuevos t ipos de marcas no tradicionales?  
 
RESPONSE  
In April 2015, Japan introduced the protection for 5 types of non -traditional trademarks into 
Trademark system. With the introduction of this new system, the JPO started requesting applicants 
to submit sound files  for sound marks, and to state detailed descriptions of trademarks for the 
other 4 types of trademarks (motion marks, hologram marks, color per se marks and position 
marks) in applications. In this manner applicants should specify trademarks for which regi stration 
are sought in the procedures for filing applications.  
 
The table below shows the total number of trademark applications and the number of non -
traditional trademark applications filed from April 1, 2015 when Japan started accepting non -
traditional trademark applications to March 31, 2016. In addition, the number of those applications 
filed in the same period of the previous fiscal year is also shown.  
 
 From April 1, 2014  
to March 31, 2015  From April 1, 2015  
to March 31, 2016  
The total number of tra demark 
applications  129,707  155,272  
The number of applications for 
non-traditional trademarks  － 1,299  WT/TPR/M/351/Add.1  
 
- 237 - 
 
  En materia de indicaciones geográficas, Japón adoptó una nueva Ley, en vigor desde junio 2015, 
que se aplica únicamente a alimentos, bebidas y productos  agropecuarios y marinos. No sólo exige 
asociación a una localidad, sino el cumplimiento de una determinada calidad, reputación u otra 
característica imputable fundamentalmente a su origen geográfico sumado a un "cierto período de 
tiempo " en una región con creta.  
 
17. Pregunta: ¿Podrían explicar en detalle en qué consisten los criterios de "calidad " y 
"reputación " u otra "característica " que deben cumplirse? ¿qué se entiende por "cierto periodo de 
tiempo " en una región concreta?  
 
RESPONSE  
Japan's geographical in dication system is in line with TRIPS Agreement. That is to say, it protects 
goods which originate in a specific geographical origin, where a given quality, reputation or other 
characteristics of the goods are essentially attribute to its geographical orig in. 
Thus, there is no qualitative standard to measure quality and social reputation. The goods are 
evaluated rather based on whether their established characteristics are essentially attributable to 
the place of origin.  
In this regard, having "a certain p roduction period" becomes useful indicator to assess strong 
linkage between production place and its established character istics. Having approximately 
25 years of production record may suggests the above mentioned linkage.  
 
Questions from Report WT/TPR/G/3 51 
 
1. In paragraph 2.3 it is stated that according to the "Japan Revitalization Strategy" Japan is 
committed to increasing the FTA coverage ratio to 70% by 2018, which represents an increase 
equivalent to 30.5% from the current coverage. In this regard, b y which means Japan intends to 
carry out this strategy? Have any countries or regio ns been selected as a priority?  
 
RESPONSE  
It is possible to reach 70 % coverage ratio by 2018 if Japan signs the ongoing EPAs (RCEP, Japan -
China -Korea FTA, Japan -EU EPA, Jap an-Colombia EPA and Japan -Turkey EPA). There is no priority 
among these agreements and the Government of Japan will make efforts to promote high -level 
EPAs.  
 
Questions from Report WT/TPR/S/351  
 
2. In paragraphs 2.23 and 2.27 it is indicated that Japan aims  to double investment by foreign 
companies by end FY2020. The government has signed bilateral investment treaties with 23 
countries/territories. What is the assessment made about these treaties? Have they been 
successful in  attracting foreign investment?  
 
RESPONSE  
Though investors make investment based on their own business judgment, considering various 
factors, in general, Japan has witnessed an increase of investment after investment treaties or 
EPAs have become effective and it could be assumed that inve stment treaties contribute to the 
creation of favorable investment environment, which is one of the elements to be considered when 
companies decide their investment destinations.  
 
3. Paragraph 3.11 mentions Japan's Single Window. Please, could you elaborat e on this matter, 
especially on the procedure itself?  
 
RESPONSE  
In July 2003, single -window service started for port and import procedures, which enables users to 
complete all requirements with a single entry form. Since October 2008, new single -window 
service ("Common Portal") that has single screen for data entry and unified user code for different 
procedures has been in operation. The Common Portal has been continuously updated through 
cooperation between the government and the private sector: procedures  under the port authority 
were added in October 2009, and notification procedures for the arrival/departure of aircraft were 
added in February 2010.  
For details about NACCS, pl ease see the following web page: 
http://www.naccs.jp/e/aboutnaccs/aboutnaccs.htm l. 
 WT/TPR/M/351/Add.1  
 
- 238 - 
 
  4. In paragraph 4.9 it is mentioned that Japan's agricultural policy continues to emphasize self -
sufficiency. How efforts conducted towards achieving self -sufficiency can be reconciled with the 
objective of achieving "substantial progressive reductions  in support and protection" to agrarian 
products as envisaged in article 20 of the WTO Agreement on Agriculture?  
 
5. In paragraph 4.15 it is stated that Japan reserved the right to use the special agricultural 
safeguard (SSG) on 121 tariff lines. To which  extent is the Special Safeguard (art. 5, WTO 
Agreement on Agriculture) a valuable policy tool for Japan?. Does Japan envisage any potential 
less trade distortive substitute for it in the future?  
 
RESPONSE  
A Given that Special Safeguards was introduced in  compensation for tariffication on the UR 
agreement and the reform process is still ongoing, Japan would like to use it properly along with 
the Agreement on Agriculture.  
 
6. In paragraphs 4.44 and 4.45 it is indicated that the OECD Producer Support Estimat e (PSE) 
and the Total Support Estimate have decreased in 2015. Is this a deliberate result of policy or is it 
market related?"  
 
 
30. KENYA  
ECONOMIC ENVIRONMENT  
 
1. We note that in 2014, real GDP contracted by 0.03%, as a result of increase of the consumpti on 
tax rate from 5% to 8% leading to a fall in private consumption and decline in business 
investment. Given these circumstances, Kenya would like to know whether the Government of 
Japan is still committed to implement the proposed second hike of the consu mption tax from 8% 
to 10 % which we understand has been delayed until 2019.  
 
RESPONSE  
The consumption tax rate hike to 10% in October 2019 is established by law.  
In order to fulfill its responsibility to pass the social security system on to the next gen eration and 
secure the confidence in Japan from the market and from the international community, the 
Government of Japan will raise the consumption tax rate to 10% in October 2019.  
 
TRADE AND INVESTMENT REGIME  
 
2. We note from the secretariat report that a lthough Japan has submitted numerous notifications 
under various WTO agreements, notifications in certain areas such as domestic support in 
agriculture, and volume of food aid were not submitted during the period under review. Kenya 
would like to know whet her Japan has now submitted all its pending notifications and if it that was 
not the case, when does Japan intents to submit outstanding notifications. What could be the 
challenges behind non -fulfilment of certain notification obligations?  
 
RESPONSE  
Regard ing the notifications of domestic support and food aid, the data up to FY  2012 has been 
notified (G/AG/N/JPN/191, G/AG/N/JPN/198, G/AG/N/JPN/199). The notifications for the following 
years are under preparation and will be submitted as soon as they are rea dy. 
 
3. We note that Japan applies non -ad valorem  rates to 6.8% of its tariff lines which makes the 
import regime complex. Kenya would like to know the kind of policy objectives pursued by Japan 
in the application non -ad valorem  rates and whether there are  plans to convert non -ad valorem  
rates to ad valorem  rates in order to simplify and enhance transparency of its import regime.  
 
RESPONSE  
Import quotas play an important role in the conservation and management of fishery resources in 
waters adjacent to Jap an. The Government of Japan will continue to implement this system in an 
appropriate manner.  
 
4. We note that Japan maintain a complex import quota administration. Kenya would like to know 
if there are plans by the Government of Japan to simplify its quota  administration regime.  WT/TPR/M/351/Add.1  
 
- 239 - 
 
  RESPONSE  
Import quotas play an important role in the conservation and management of fishery resources in 
waters adjacent to Japan. The Government of Japan will continue to implement this system in an 
appropriate manner . 
 
 
ADDITIONAL  RESPONSES - KENYA  
3. We note that Japan applies non -ad valorem  rates to 6.8% of its tariff lines which makes the 
import regime complex. Kenya would like to know the kind of policy objectives pursued by Japan 
in the application non -ad valorem  rates and whe ther there are plans to convert non -ad valorem  
rates to ad valorem  rates in order to simplify and enhance transparency of its import regime.  
 
RESPONSE  
The Government of Japan has applied a suitable type of tariff s, such as ad valorem  rates and 
specific dut ies, for each product in accordance with the product's properties, for reasons such as 
protecting the domestic industry. For example, a specific duty is applied to goods whose tax base 
is difficult to estimate or whose value is low but imposition of a cert ain amount of customs duty on 
them is considered necessary. As such, Japan has at present no plan to convert non -ad valorem  
rates to ad valorem  rates.  
 
 
31. MONGOLIA  
3.24.  In FY2016, Japan's overall simple average applied MFN tariff rate was 6.1% (up from 5.8% 
in FY2014) (Table A3.1). This increase is due to higher average ad valorem  equivalents (AVEs) of 
non-ad valorem  duties. The authorities provided data for 476 out of 619 AVEs based on import 
data for 2014.19 Consequently, the tariff analysis is based o n 99.1% of the 9,071 tariff lines. The 
simple average rate for all the AVEs supplied is 32.7%20; however, the highest rate is 389% for 
certain cow peas. Of the 101 highest tariffs, 95 had non -ad valorem  rates.  
 
Quest ions:  
 
1. Please provide the list of a ll 619 AVEs.  
 
RESPONSE  
Although 619 AVEs in the secretariat report are not clear to us, in Japan, specific duties are 
imposed on the following products, using 9 -digit statistical codes  (as of April 1 2016):  
 
010121290  010129290  010229100  010229200  01029021 0 010290290  010392011  010392012  020311020  020311030  
020312021  020312023  020319021  020319023  020321020  020321030  020322021  020322023  020329021  020329023  
020630092  020630093  020649092  020649093  021011010  021012010  021019010  021020000  021099011  021099020  
040110190  040120190  040140190  040150119  040150129  040210129  040210212  040210217  040210229  040221119  
040221129  040221212  040221217  040221229  040229119  040229129  040229291  040291129  040291290  040299129  
040299290  040310190  040390113  040390118  040390123  04039 0128 040390133  040390138  040410129  040410139  
040410149  040410169  040410179  040410189  040490112  040490118  040490122  040490128  040490132  040490138  
040510129  040510229  040520090  040590190  040590229  040819000  040899000  070310012  071290039  071310229  
07133209 0 071333229  071334299  071335299  071339222  071339227  071350229  071360299  071390229  100111090  
100119090  100191091  100191099  100199091  100199096  100199099  100310090  100390091  100390099  100510020  
100590091  100590099  100610090  100620090  100630090  100640090  100860290  110100200  110290190  110290290  
110290390  110311090  110319190  110319290  110319590  110320190  110320390  110320490  110320590  110419119  
110419129  110419290  110419490  110429119  110429129  110429290  110429490  110710019  110710029  110720020  
110811090  11081 2010 110812090  110813010  110813090  110814010  110814090  110819011  110819019  110819091  
110819099  110820090  120230091  120230099  120241099  120242099  121221100  121299190  130231000  150110200  
150120200  150420000  150710100  150710200  150790000  150810100  150810200  150890000  151211110  151211120  
151211210  151211220  151219010  151219090  151221090  151229090  151311000  151319000  151411100  151411200  
151419000  151491100  151491200  151499000  151511000  151519000  151521100  151521200  151529000  151550100  
151550200  151590410  151590420  151590510  151590520  151790290  160241011  160242011  160249210  170112100  
170112200  170113000  170114110  170114190  170114200  170191000  170199100  170199200  170220100  170220200  
170230100  170230210  170230229  170240100  170240210  170240220  170260100  170260 210 170260220  170290110  
170290211  170290219  170290290  170290300  170290510  170290521  170290529  170310090  170390090  180620319  
180690319  190110119  190110129  190120112  190120117  190120128  190120139  190120149  190120152  190120159  
190120168  190190132  190190137  190190148  190190159  190190169  190190172  190190179  190190588  190211000  
190219010  190219092  190219093  190219094  190219099  190240000  190410212  190410229  190410239  190420212  
190420229  190420239  190430090  190490130  190490290  190490390  200820119  200820219  200911190  200912190  
200919190  200921190  200929190  200931190  200939190  200941190  200949190  200961190  200969190  200971190  WT/TPR/M/351/Add.1  
 
- 240 - 
 
  200979190  200981190  200989119  200990119  210112232  210112237  210120232  210120237  210610140  210690119  
210690123  210690129  210690215  210690 219 210690221  210690229  210690246  210690282  210690518  220410000  
220421010  220421020  220429010  220429090  220430119  220430200  220510000  220590200  220600100  220600210  
220600221  220600228  220600229  220710290  220720200  220890123  220890220  220890230  220890240  230910010  
230910099  230990219  230990299  250100010  271012131  271012132  271012137  271012139  271012143  271012149  
271012159  271019143  271019149  271019159  271019165  271019166  271019167  271019169  271019173  271019174  
271019175  271019179  271020131  271020132  271020137  271020139  271020143  271020149  271020159  271020165  
271020166  271020167  271020169  271020173  271020174  271020175  271020179  271114010  283620100  350510200  
350520000  380910000  390210090  500100090  500200221  500200225  500200226  500200227  511111021  5111190 20 
511120021  511130021  511190021  511219020  511220021  511230021  511290021  520511023  520511029  520512021  
520512022  520512029  520513021  520513022  520513029  520514021  520514022  520514029  520515021  520515022  
520515029  520521023  520521029  520522021  520522022  520522029  520523021  520523022  520523029  520524021  
520524022  520524029  520526021  520526022  520526029  520527021  520527022  520527029  520528021  520528022  
520528029  520531021  520531029  520532021  520532029  520533021  520533029  520534021  520534029  520535021  
520535029  520541020  520542090  520543021  520543029  520544021  520544029  520546021  520546029  520547021  
520547029  520548021  520548029  520611020  520612020  520613020  520614020  520615020  520621020  520622020  
520623020  520624020  520625020  520631020  520632020  5206330 20 520634020  520635020  520641020  520642020  
520643020  520644020  520645020  520710099  520790099  520811010  520811091  520811092  520811093  520811099  
520812010  520812091  520812092  520812093  520812099  520813010  520813090  520819010  520819091  520819099  
520821010  520821091  520821092  520821099  520822010  520822020  520822091  520822099  520823010  520823090  
520829010  520829090  520831010  520831091  520831092  520831093  520831099  520832010  520832091  520832092  
520832099  520833010  520833090  520839010  520839091  520839099  520841010  520841091  520841092  520841099  
520842010  520842091  520842092  520842099  520843010  520843090  520849010  520849090  520851011  520851019  
520851091  520851092  520851093  520851094  520851099  520852011  520852019  520852091  520852092  520852093  
520852094  5208520 99 520859011  520859019  520859091  520859092  520859099  520911010  520911091  520911099  
520912010  520912090  520919010  520919090  520921010  520921090  520922010  520922090  520929010  520929090  
520931010  520931091  520931099  520932010  520932090  520939010  520939090  520941010  520941090  520942010  
520942090  520943010  520943090  520949010  520949090  520951011  520951019  520951091  520951092  520951099  
520952011  520952019  520952091  520952099  520959011  520959019  520959091  520959092  520959099  521011030  
521019910  521019990  521021030  521029910  521029990  521031030  521032030  521039030  521041030  521049910  
521049990  521051031  521051039  521059031  521059039  521111030  521112030  521119030  521120900  521131030  
521132030  521139030  521141030  521142030  521143030  521149030  521151031  52115103 9 521152031  521152039  
521159031  521159039  521211030  521212030  521213030  521214030  521215031  521215039  521221030  521222030  
521223030  521224030  521225031  521225039  560490910  581100023  640320012  640320022  640340012  640340022  
640351012  640351029  640359019  640359104  640359105  640359111  640359119  640391019  640391029  640399015  
640399016  640399029  640399031  640399039  640419119  640420119  640420212  640420222  640510119  640590112  
640590122  750120100  750210000  750400210  780110010  780110020  780191020  780191040  78019 9100 780199212  
780199221  780199222  790111010  790111020  790112010  790112020  790120010  790120021  811020000  811090000  
960810090  960860000          
 
2. Has there been any increase of MFN non -ad valorem  duties since the previous review in 2014? 
Mongolia and J apan have negotiated the EPA based on 2013 MFN duties. If there was any increase 
on certain MFN, please explain which of the duties would be followed in the EPA: the one of 2013 
or the increased rate? In case there is a concession on these goods, which rat e the reduction shall 
take place from?  
 
RESPONSE  
The Government of Japan had not changed specific duty rates from FY2014 to FY2016. Decrease in 
import unit values during the said period may have led to an increase in ad valorem  equivalent 
rates.  In the EPA  between Mongolia and Japan, base rate is specified in Column 3 of each Party 's 
Schedule ( Please refer to  Paragraph 4 of Part 1, Annex 1 to MJEPA).  
 
 
32. TURKEY  
THE GOVERNMENT REPORT  
 
2.1 Trade and Investment Policy – Overview, pg. 4, para. 2.3  
 
"Japan is currently a party to sixteen EPAs. Through the "Japan Revitalization Strategy" issued by 
the Government in June 2013, Japan is committed to increasing the FTA coverage ratio to 70% by 
2018 from the current figure of 39.5%. Regional trade agreements and mul tilateral trading system 
under the WTO should complement one another and Japan believes that these regional 
agreements will serve as building blocks to achieve higher trade liberalization at the multilateral 
level. " 
 WT/TPR/M/351/Add.1  
 
- 241 - 
 
  Question  
Could Japan kindly clarify whe ther the TPP was included in the current figure related to the FTA 
coverage ratio?  
 
Question  
In light of the latest developments concerning the ratification process of the TPP, is it still possible 
to reach 70% coverage ratio by 2018? If yes, which ongoin g FTA negotiation is foreseen to make 
such a contribution?  
 
2. TRADE AND INVESTM ENT POLICY 2.3 FTA/E PAS PG. 8, TABLE 2.1  
 
It is stated in the Government Report that  
 
Country  Date of the entry into force  Additional information  
Under negotiation  
EU (E uropean Union)  Under negotiation (The negotiations 
commenced in April 2013)  - Seventeen rounds of negotiations were 
held. The latest meeting was held in 
Brussels in September 2016.  
 
Question  
Could Japan provide information concerning state of play of t he negotiations with the EU? Is there 
any target date for the conclusion of the negotiations and signature of the Agreement?  
 
2. TRADE AND INVESTM ENT POLICY 2.4.3 JAP AN'S BILATERAL ACTIV ITIES OUTSIDE OF 
FTA, EUROPEAN UNION PG. 9, PARA. 2.23  
 
It is stated in the Government Report that "The trade turnover between Japan and the EU has 
steadily recovered in recent years from the temporary decline in 2009 due to the world economic 
crisis. As the Ministry of Finance reports, the volume of mutual trade amounted t o about ¥17 
trillion in 2015. Japan is the EU's seventh largest trading partner and the EU is Japan's third 
largest one. Regarding foreign direct investment in each other's economies, Japan invested about 
¥35 trillion and the EU invested about ¥10 trillion  in 2015. The EU is the largest investor and the 
second largest investee for Japan. According to a survey by the Ministry of Economy, Trade and 
Industry (METI), about 2,500 Japanese enterprises are operating businesses in the EU and 
creating about half a m illion jobs."  
 
Question  
Could Japan provide detailed information about sectoral distribution of Japanese investors 
operating in the EU?  
 
3. TRADE AND DEVELOP MENT 3.2 GENERALIZED  SYSTEM OF PREFERENCE S PG. 13, 3.8  
 
It is stated in the Government Report that "…Consequently, coverage of DFQF treatment for LDCs, 
which was previously approximately 86%, has risen to approximately 98% as defined at the tariff 
line level. On 1 April 2011, Japan extended the effective period of the GSP scheme to 31 March 
2021, abolis hed all ceiling -based schemes for certain industrial products, and revised the criteria 
for application of competitiveness -focused, product -by-exclusion measures. The revision was made 
to make the criteria more objective and transparent and to allow less c ompetitive developing 
countries to benefit more from the GSP scheme."  
 
Question  
Could Japan provide detailed information about 2% tariff lines excluded from the coverage? Could 
Japan explain in detail the changes realized in 2011? Are there any changes to relax rules of origin 
requirement for the products having export potential for developing countries?  
 
THE SECRETARIAT REPORT  
 
2.1 General Framework, pp. 22, para. 2.1  
 
It is mentioned in the report that "…Ministries involved in trade policy include the Mi nistry of 
Foreign Affairs (MOFA), the Ministry of Economy, Trade and Industry (METI), and several other 
ministries responsible for specific issues or sectors such as: the Cabinet Office; the Ministry of 
Finance; the Ministry of Agriculture, Forestry and Fi sheries; the Ministry of Education, Culture, WT/TPR/M/351/Add.1  
 
- 242 - 
 
  Sports, Science and Technology; the Ministry of the Environment; the Ministry of Health, Labour, 
and Welfare; and the Ministry of Land, Infrastructure, Transport and Tourism..."  
 
Question  
As Japan 's Economic Par tnership Agreement (EPA) negotiations are also monitored by different 
Ministries, could Japan comment on whether there are any plans in the future to bring EPA 
negotiations under the coordination of one authority?  
 
2. TRADE AND INVESTM ENT REGIME --2.3.2 R EGIONAL AND PREFEREN TIAL 
AGREEMENTS PG. 24, P ARA. 2.11  
 
It is stated in the Government Report that "Japan has begun negotiations to conclude a further 
eight agreements with: China and the Republic of Korea, Regional Comprehensive Economic 
Partnership (RCEP ) partners, the European Union, Canada, Colombia, and Turkey. Since Japan's 
last trade policy review, Turkey is the only country with which Japan has newly entered into 
negotiations (in December 2014).  
 
Question  
Could Japan explain whether it has an intent ion to initiate FTA negotiations with countries other 
than specified in the paragraph?  
 
2.3.2 REGIONAL AND P REFERENTIAL AGREEMEN TS PG. 24, PARA. 2.1 0 AND 3.3.3 
COMPETITION POLICY A ND PRICE CONTROLS 3. 3.3.1 RECENT DEVELOP MENT PG. 50, 
PARA 3.92  
 
It is state d in the Secretariat Report that "Japan has signed a total of 16 regional agreements 
with: Australia, Brunei Darussalam, Chile, India, Indonesia, Malaysia, Mexico, Mongolia, Peru, the 
Philippines, Singapore, Switzerland, Thailand, and Viet Nam, the ASEAN m ember countries, and 
the Trans -Pacific Partnership (TPP) member countries. All of these agreements (except for the 
TPP) have entered into force. Japan initiated the TPP approval process by submitting the 
agreement to the Diet in March 2016."  
 
In addition, it is also stated in the Report that "According to the authorities, a bill was submitted to 
the Diet on 8 March 2016 to amend the AMA in order to align its enforcement procedures with 
common rules under the Trans -Pacific Partnership (TPP) competition chapt er. The TPP, which has 
not yet entered into force, calls on members to allow competition authorities to resolve alleged 
violations by mutual agreement with the companies concerned. This rule is expected to reduce the 
risk of enforcement -related business de lays for companies operating within the TPP countries.  
 
Japan ratified TPP on 9th of December 2016, although the future of this Agreement is unknown. As 
well, as can be seen from para 3.92 in the Secretariat Report, Japan has started to amend some 
specific  legislation on Anti -Monopoly Act.  
 
Question  
In this respect, could Japan kindly give information whether it is planned to amend legislations in 
the context of TPP in other areas including SPS measures, technical regulations, patents, and other 
measures a ffecting imports and exports in the near future? If positive, could Japan summarize the 
details?  
 
2.3.3 Trade and Investment Regime – Trade Agreements and Arrangements – Other 
Agreements and Arrangements, pg. 25, para. 2.14  
 
"Under the GSP scheme, prefere ntial tariff rates apply to 408 tariff lines at the HS 9 -digit level in 
Chapters 1 to 24 (agriculture and fisheries) and to 3,151 tariff lines in Chapters 25 to 97 
(industrial products). The main exclusions are rice and rice products, meat and meat product s, 
fish, dairy products, pineapples, cereal products, textiles and clothing, leather and leather 
products, and footwear. The preferential margin varies from one product to another. " 
 
Question  
Could Japan kindly explain why textiles and clothing, leather an d leather products, and footwear 
are excluded from the GSP Scheme?  
 WT/TPR/M/351/Add.1  
 
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  3.2.4 Trade Policies and Practices by Measure – Measures Directly Affecting Exports – 
Export Support and Promotion, pgs. 45 -46, para. 3.74  
 
"JETRO is the official agency responsible for p romoting exports through information, research, 
support for and participation in international trade fairs, and other activities to promote exports 
from, and investment in, Japan. JETRO is an incorporated administrative agency under the Japan 
External Trad e Organization Incorporated Administrative Agency Act of 2002. JETRO currently has 
74 offices around the world. " 
 
Question  
Could Japan kindly give more detailed information about export and investment promotion 
activities of JETRO worldwide?  
 
3.3.1.2 Ince ntive schemes, pp. 47, para. 3.8.3  
 
It is mentioned in the report that "Under the Industrial Competitiveness Enhancement Act, enacted 
on 4 December 2013, incentives are provided to boost investments in highly productive 
equipment; these incentives are to b e abolished at the end of March 2017 (Table 3.10). The Act 
aims to implement the measures included in the Japan Revitalization Strategy, which was 
approved by the Cabinet on 14 June 2013 for the purpose of revitalizing the Japanese economy 
and enhancing th e industrial competitiveness of enterprises doing business in Japan."  
 
Question  
It is known that Japanese government plans to root out inefficiencies in the agricultural sector, 
encouraging realignment in areas such as animal feed to control excessive prod uction costs and 
bring down elevated prices. Could Japan explain whether the Ministry of Agriculture, Forestry and 
Fisheries may and/or will use tax incentives to encourage such an industry realignment under the 
Industrial Competitiveness Enhancement Act, which falls under the jurisdiction of the Ministry of 
Economy, Trade and Industry?  
 
3.3.2 Trade Policies and Practices by Measure – Measures Affecting Production and 
Trade – Subsidies and Other Assistance Programmes, pg. 49, para. 3.88  
 
"For the purpose of  regional development, the Government maintains other specific programmes 
under the supervision of the Japan External Trade Organization (JETRO) at the METI. " 
 
Question  
Could Japan kindly elaborate on specific programmes conducted under the supervision of JETRO 
for the purpose of regional development?  
 
 
3.3.3.1 Recent development, pp. 50, para. 3.92  
 
It is mentioned in the report that "…According to the authorities, a bill was submitted to the Diet 
on 8 March 2016 to amend the AMA in order to align its enf orcement procedures with common 
rules under the Trans -Pacific Partnership (TPP) competition chapter. The TPP, which has not yet 
entered into force, calls on members to allow competition authorities to resolve alleged violations 
by mutual agreement with the  companies concerned."  
 
Question  
Could Japan provide its comments on the future prospects of TPP taking into consideration the 
recent international developments?  
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 59, PAR A. 3.122  
 
It is stated in the Se cretariat Report that "The main changes also include the amendment in 2015 
of the 1960 Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals 
and Medical Devices, which transferred the authority to issue licences to specially co ntrolled 
medical device sellers from prefectures to designated cities and specified districts."   
 WT/TPR/M/351/Add.1  
 
- 244 - 
 
  Question  
Could Japan give detailed information whether the amendment in question is only made for 
medical devices or also covers pharmaceuticals? If so, to wh at extent does it change the role of 
Pharmaceuticals and Medical Devices Agency (PMDA) of Japan in terms of its authorization and 
certification of these products based upon its GMP, GDP, GLP, GCP inspections? What was the main 
rationale behind transferring  the authority from prefectures to designated cities and specified 
districts?  
 
RESPONSE  
The amendment in question covers only the licenses of specially controlled medical device sellers.  
As the amendment is related to only authorization of sellers and not  to certification/approval of 
products, the role of PMDA under the amendment does not change.  
This amendment was made as part of the promotion of reforms to boost regional autonomy and 
independence. As designated cities and specified districts have already  had authority to grant 
licenses for pharmacies, they were deemed competent to grant licenses to specially controlled 
medical device sellers.  
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 62, PAR A. 3.130  
 
It is stated in the Secretariat Report that  "Regarding Japan Agricultural Standards (JAS), two JAS 
(the JAS for Organic Plants and the JAS for Organic Processed Foods of Organic Plants) are 
technical regulations, whereas all other JAS are standards but not technical regulations. The JAS 
for Organic  Plants was revised in December 2015 and in February 2016, while the JAS for Organic 
Processed Foods of Organic Plants was revised in March 2015 and in February 2016. 58 other JAS 
have been revised since 2014 and three JAS have been withdrawn. At the end o f March 2016, the 
total number of JAS in force was 201 and the number of JAS corresponding with international 
standards was 80; the proportion of JAS harmonized with international standards was 78%."  
 
In Japan 's previous TPRM report (WT/TPR/S/310/Rev.1), t he harmonization level of JAS with 
international standards was 77%. Now, this level slightly increased to 78%.  
 
Question  
Could Japan kindly give information whether it has any roadmap to increase the number of JAS 
harmonized with international standards i n the near future? Could Japan give more information on 
the non -harmonized standards with international standards (22% of all standards) and in which 
areas does Japan have to use different standards?  
 
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 62, PARA. 3.132  
 
It is stated in the Secretariat Report that "Approximately 7,814 domestic and 905 foreign factories 
in 21 countries and economies are certified to affix JIS marks (JIS Mark Scheme). The JIS Mark 
scheme is voluntary, while some regulations refer to JIS as an option to fulfil relevant technical 
requirements. 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 
harmoniz ed, based on ISO/IEC 17065. As at October 2015, 24 organizations were accredited as 
JIS mark certification bodies."  
 
Question  
In this respect, could Japan kindly give information which regulations refer to JIS as an option to 
fulfill the relevant technical  requirements?  
 
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 63, PAR A. 3.134  
 
It is stated in the Secretariat Report that " Since the last review there have been no regulatory 
reforms concerning conformity assessment, acceptance of foreign test re sults and foreign 
certification, or the number of designated inspection bodies in the Consumer Product Safety Act 
and Electrical Appliance and Material Safety Law."   
 WT/TPR/M/351/Add.1  
 
- 245 - 
 
  Question  
Could Japan give detailed information on the functioning of its MRAs with the EU  currently covering 
4 sectors (electric equipment, telecommunication, pharmaceuticals and chemicals)? Could Japan 
briefly share its approach regarding the extension the scope of those MRAs in terms of adding new 
sectors such as motor vehicles, medical devi ces etc. or deepening the coverage of the existing 
ones as well as incorporating them under its Economic and Partnership Agreement (EPA) with the 
EU in the near future?  
 
3. TRADE POLICIES AN D PRACTICES IN MEASU RE 3.3.9 GOVERNMENT PROCUREMENT 
PG. 67, PARA.  3.163  
 
It is stated in the Secretariat Report that "All Economic Partnership Agreements signed by Japan, 
except those with ASEAN and with Malaysia, have government procurement provisions The TPP 
also contains a government procurement chapter. Japan's GP commitments under the TPP are 
roughly the same as its WTO GPA commitments."  
 
Question  
Could Japan explain the rationale for the absence of Government Procurement Chapter under FTAs 
with ASEAN and Malaysia?  
 
RESPONSE  
The lack of Government Procurement Chap ter under EPAs with ASEAN and Malaysia is the result of 
the negotiations of the EPAs  
 
 
3. TRADE POLICIES AN D PRACTICES IN MEASU RE 3.3.10.6 GEOGRAPH ICAL 
INDICATIONS PG. 81, PARA. 3.191  
 
It is stated in the Secretariat Report that "The new law for protecting  geographical indications (Act 
on Protection of the Names of Specific Agricultural, Forestry and Fishery Products and Foodstuffs) 
was prepared by the Ministry of Agriculture, Forestry and Fisheries, and came into force in June 
2015. It applies only to geog raphical indications of foods, beverages, and agricultural and marine 
products.  
 
Question  
Could Japan explain what kind of legal or administrative protection is provided for other product 
categories (example: handcrafts) except specified in the paragraph?  
 
3. TRADE POLICIES AN D PRACTICES IN MEASU RE 3.3.10.6 GEOGRAPH ICAL 
INDICATIONS PG. 81, TABLE 3.36 INFORMATI ON ON REGISTERED GIS  
 
It is stated in the Secretariat Report that  
 
Registration No.  Name  Category of products  Date  
9  Kumamoto Rush Mats 
Kumamo to kensan Igusa Tatami 
omote  Class 41: Tatami facings (Rush 
Tatami Facing)  2/2/2016  
 
Question  
Could Japan explain the rationale for the registration of " Kumamoto Rush Mats Kumamoto kensan 
Igusa Tatami omote " as an agricultural GI"? Is it possible to re gister rugs and mats as an 
agricultural GI under the Act?  
 
3.3.10.10 The 2015 IP strategic programmes, pp. 86, para. 3.216  
 
It is mentioned in the report that "Japan has a vast content industry. It includes mainly 
anime/manga, movies, music, games, and br oadcast programmes. However its related exports 
remained limited. The strategic programme seeks to tap the potential of the industry, through 
various export promotion measures."  
 WT/TPR/M/351/Add.1  
 
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  Question  
One of the main aims of the Cool Japan Strategy is to promote the ov erseas advancement of the 
content industry. Could Japan provide detailed information on how it measures and evaluates the 
success of the strategy?  
 
4.1.2.2 Trade policies, pp.92, para. 4.13  
 
Concerning agricultural products, it is mentioned in the report that "Since Japan's previous review, 
there has been little change to market access measures (tariffs, the special safeguard, and tariff 
quotas). The relatively high tariffs have helped to maintain higher domestic than world prices."  
 
Question  
In addition t o these market access measures, Japan has a sophisticated application system to 
import agricultural products. Could Japan explain if there are any plans to change the system?  
 
4.1 AGRICULTURE 4.1. 2.3.4 FRUITS AND VEG ETABLES PG. 95, PARA . 4.32  
 
It is state d in the Secretariat Report that "Under the revised Policy, financial assistance is to be 
increased for converting production to more valuable fruits (defined as profitable fruits or highly 
valued varieties) and for on -farm improvements."  
 
Question  
Could J apan kindly explain which fruits are named as more valuable fruits? If possible, could Japan 
provide the whole list of those products categorized as more valuable fruits benefited from 
financial assistance?  
 
4.1.2.4.2 OECD INDIC ATORS PG. 97, PARA. 4.47 
 
It is stated in the Secretariat Report that "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 it is provided by a comprehensive set of polic ies 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 research, and 
extension services. Market price supp ort is the main component and it, along with other transfers 
based on output and inputs, is categorized by the OECD as one of the potentially most production - 
and trade -distorting forms of support."  
 
Question  
Could Japan indicate whether it has any intenti on to change the structure of its agricultural 
support? In other words, in the near future is it planned to abolish or somehow reduce the share of 
the market price support system which is found by OECD as one of the most production - and 
trade - distorting f orms of support?  
 
RESPONSE  
Taking into account the result of the Uruguay Round negotiations, the Government of Japan has 
reviewed its market price support policies and introduced and expanded direct payments. The 
Japanese -style direct payment was introduc ed in 2015 as one of such direct payments. The 
Government of Japan will continue to pursue structural reform which fits the agricultural situation 
in Japan, in accordance with the WTO Agreement on Agriculture.  
 
 
4.2 Fisheries, pp. 99, para. 4.52  
 
It is men tioned in the report that "The average applied MFN tariff 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, unchanged since Japan's previ ous review…"  
 
Question  
Could Japan comment on if there has been any change in regulations regarding the import control 
system, including import approval and acknowledgements?   
 
 WT/TPR/M/351/Add.1  
 
- 247 - 
 
  Other Questions  
 
2.2 Trade Policy Objectives, pp. 23, para. 2.5  
 
It is mention ed in the report that  "Since its previous review, Japan's trade policy objectives have 
remained unchanged. It has continued to promote both the multilateral trading system and 
bilateral and regional trade agreements; Japan considers that those agreements a re 
complementary to, not a substitute for, the multilateral trading system. The authorities state that 
the WTO should continue to play a central role in promoting economic growth and development, 
whilst bilateral and regional trade agreements also play an important role."  
 
Questi on 
Concerning the liberalization in agricultural trade, does Japan agree on the theory that FTAs are a 
more effective instrument for opening Japan's agricultural market than the WTO because they 
reshape the domestic trade policy in  ways that are encouraging to further market opening by 
altering the domestic trade policymaking on the demand side as well as some aspects of the 
supply side?  
 
RESPONSE  
As referred in the report by Japan, the Government of Japan considers that FTA/EPAs ar e 
complementary to the multilateral trading system. And the Government of Japan is engaged in 
FTA/EPAs and WTO negotiations, aiming to establish trade rules that enable the mutual 
development of agriculture in each country.  
 
 
ADDITIONAL REPLIES T O TURKEY  
Trade Policy Review of Japan  
8 and 10 March 2017  
Questions by TURKEY  
 
 
THE GOVERNMENT REPORT  
 
2.1 Trade and Investment Policy – Overview, pg. 4, para. 2.3  
 
"Japan is currently a party to sixteen EPAs. Through the "Japan Revitalization Strategy " issued by 
the Government in June 2013, Japan is committed to increasing the FTA coverage ratio to 70% by 
2018 from the current figure of 39.5%. Regional trade agreements and multilateral trading system 
under the WTO should complement one another and Japan believes tha t these regional 
agreements will serve as building blocks to achieve higher trade liberalization at the multilateral 
level. " 
 
Question  
Could Japan kindly clarify whether the TPP was included in the current figure related to the FTA 
coverage ratio?  
 
RESPON SE 
FTA coverage ratio mentioned in the "Japan Revitalization Strategy" includes FTAs signed or 
entered into force. Since TPP was signed, it is included in the current figure.  
 
Question  
In light of the latest developments concerning the ratification process  of the TPP, is it still possible 
to reach 70% coverage ratio by 2018? If yes, which ongoing FTA negotiation is foreseen to make 
such a contribution?  
 
RESPONSE  
It is possible to reach 70 % coverage ratio by 2018 if the Government of Japan signs the ongoing  
EPAs (RCEP, Japan -China -Korea FTA, Japan -EU EPA, Japan -Columbia EPA and Japan -Turkey EPA).  
 
 WT/TPR/M/351/Add.1  
 
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  2. TRADE AND INVESTM ENT POLICY 2.3 FTA/E PAS PG. 8, TABLE 2.1  
 
It is stated in the Government Report that  
 
Country  Date of the entry into force  Additional infor mation  
Under negotiation  
EU (European Union)  Under negotiation (The negotiations 
commenced in April 2013)  - Seventeen rounds of negotiations were 
held. The latest meeting was held in 
Brussels in September 2016.  
 
Question  
Could Japan provide informa tion concerning state of play of the negotiations with the EU? Is there 
any target date for the conclusion of the negotiations and signature of the Agreement?  
 
RESPONSE  
The Japan -EU Economic Partnership Agreement (EPA) is the utmost priority in the relati onship 
between Japan and the EU. It is extremely important for the government of Japan and the EU to 
reach an agreement on fundamental elements of the Japan -EU EPA negotiations as early as 
possible so as to counter the protectionist movements. The governme nt of Japan will together with 
EU continue the negotiations with strong will and maintain the momentum toward that goal.  
 
2. TRADE AND INVESTM ENT POLICY 2.4.3 JAP AN'S BILATERAL ACTIV ITIES OUTSIDE OF 
FTA, EUROPEAN UNION PG. 9, PARA. 2.23  
 
It is stated in th e Government Report that "The trade turnover between Japan and the EU has 
steadily recovered in recent years from the temporary decline in 2009 due to the world economic 
crisis. As the Ministry of Finance reports, the volume of mutual trade amounted to abo ut ¥17 
trillion in 2015. Japan is the EU's seventh largest trading partner and the EU is Japan's third 
largest one. Regarding foreign direct investment in each other's economies, Japan invested about 
¥35 trillion and the EU invested about ¥10 trillion in 2 015. The EU is the largest investor and the 
second largest investee for Japan. According to a survey by the Ministry of Economy, Trade and 
Industry (METI), about 2,500 Japanese enterprises are operating businesses in the EU and 
creating about half a millio n jobs."  
 
Question  
Could Japan provide detailed information about sectoral distribution of Japanese investors 
operating in the EU?  
 
RESPONSE  
Please see the following table of stock -basis data at the end of 2015.  
(100 million yen)  Manufacturing  Food 31,428  143,140  
Textile  1,903  
Lumber and pulp  470 
Chemicals and pharmaceuticals  20,247  
Petroleum  1,414  
Rubber and leather  3,202  
Glass and ceramics  6,863  
Iron, non -ferrous, and metals  7,683  
General machinery  11,562  
Electric machinery  27,410 
Transportation equipment  24,695  
Precision machinery  4,167  WT/TPR/M/351/Add.1  
 
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  Non-Manufacturing  Farming and forestry  197 182,575  
Fishery and marine products  1,232  
Mining  31,118  
Construction  522 
Transportation  4,008  
Communications  13,339  
Wholesale a nd retail  43,666  
Finance and insurance  60,567  
Real estate  1,874  
Services  9,391  
Total 325,716  
 
Please note that the total amounts of Manufacturing and Non -manufacturing are not necessarily 
equal to the sum of the figures on the sectorial table.  They include the undisplayed miscellaneous 
items of "Other manufacturing"/"Other non -manufacturing" respectively. Moreover, figures in this 
table are compiled according to the Directional Principle -- that is, investments from an affiliated 
company in its  parent company are recorded as withdrawals from the parent company. Thus, the 
figures are different from those of direct investment in the International Investment Position of 
Japan that are compiled according to the Asset and Liability Principle on a gro ss basis.  
For the detail, please see the following URL.  
https://www.boj.or.jp/en/statistics/br/bop_06/fdinote.htm/ .  
 
3. TRADE AND DEVELOP MENT 3.2 GENERALIZED  SYSTEM OF PREFERENCE S PG. 13, 3.8  
 
It is stated in the Government Report that "…Consequently, cov erage of DFQF treatment for LDCs, 
which was previously approximately 86%, has risen to approximately 98% as defined at the tariff 
line level. On 1 April 2011, Japan extended the effective period of the GSP scheme to 31 March 
2021, abolished all ceiling -based schemes for certain industrial products, and revised the criteria 
for application of competitiveness -focused, product -by-exclusion measures. The revision was made 
to make the criteria more objective and transparent and to allow less competitive developi ng 
countries to benefit more from the GSP scheme. " 
 
Question  
Could Japan provide detailed information about 2% tariff lines excluded from the coverage? Could 
Japan explain in detail the changes realized in 2011? Are there any changes to relax rules of orig in 
requirement for the products having export pote ntial for developing countries?  
 
RESPONSE  
The items excluded from the coverage of DFQF market access are as follows; rice & processed rice 
products, certain fishery products (mackerel, etc.), starch, corn f or cornstarch, sugar, and certain 
leather products.  
In 2011, the Government of Japan revised the criteria for the application of the competitiveness -
focused, product -by-exclusion measures in order to improve its objectivity and transparency. On 
one hand, t he provision regarding influence on domestic industry was abolished and the period for 
exclusion was extended from 2 years to 3 years to make the measures more effective. On the 
other hand, "essential export products" of a beneficiary country/Customs terri tory that account for 
more than 25% of its total imports granted under the preferential treatment into Japan were 
removed from the scope of exclusion.  
In April 2011, the Government of Japan introduced the De minimis rule for textiles and textile 
goods unde r Chapters 50 through 63 of the Harmonized System, which relaxed the production 
requirement for the qualification of originating goods, that is, non -originating materials used for 
the production of the good that do not satisfy the applicable rule of the go od shall be disregarded, 
provided that the totality of such non -originating materials does not exceed 10 percent in weight 
of the good. In addition, in April 2015, Japan relaxed the preferential rules of origin for apparel 
and clothing accessories, knitted  and crocheted (HS Chapter 61), responding to the request from 
LDCs.  
 WT/TPR/M/351/Add.1  
 
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  THE SECRETARIAT REPORT  
 
2.1 General Framework, pp. 22, para. 2.1  
 
It is mentioned in the report that "…Ministries involved in trade policy include the Ministry of 
Foreign Affairs (MOFA),  the Ministry of Economy, Trade and Industry (METI), and several other 
ministries responsible for specific issues or sectors such as: the Cabinet Office; the Ministry of 
Finance; the Ministry of Agriculture, Forestry and Fisheries; the Ministry of Educatio n, Culture, 
Sports, Science and Technology; the Ministry of the Environment; the Ministry of Health, Labour, 
and Welfare; and the Ministry of Land, Infrastructure, Transport and Tourism... " 
 
Question  
As Japan 's Economic Partnership Agreement (EPA) negotiat ions are also monitored by different 
Ministries, could Japan comment on whether there are any plans in the future to bring EPA 
negotiations under the  coordination of one authority?  
 
RESPONSE  
Nothing has been decided about the establishment of new organizat ion for trade negotiations.  
 
2. TRADE AND INVESTM ENT REGIME --2.3.2 REGIONAL AND P REFERENTIAL 
AGREEMENTS PG. 24, P ARA. 2.11  
 
It is stated in the Government Report that "Japan has begun negotiations to conclude a further 
eight agreements with: China and the  Republic of Korea, Regional Comprehensive Economic 
Partnership (RCEP) partners, the European Union, Canada, Colombia, and Turkey. Since Japan's 
last trade policy review, Turkey is the only country with which Japan has newly entered into 
negotiations (in D ecember 2014).  
 
Question 
Could Japan explain whether it has an intention to initiate FTA negotiations with countries other 
than specified in the paragraph?  
 
RESPONSE  
As of today, the Government of Japan does not have a concrete plan to start a new FTA 
negotiation.  
 
2.3.2 REGIONAL AND P REFERENTIAL AGREEMEN TS PG. 24, PARA. 2.1 0 AND 3.3.3 
COMPETITION POLICY A ND PRICE CONTROLS 3. 3.3.1 RECENT DEVELOP MENT PG. 50, 
PARA 3.92  
 
It is stated in the Secretariat Report that "Japan has signed a total of 16 regional agre ements 
with: Australia, Brunei Darussalam, Chile, India, Indonesia, Malaysia, Mexico, Mongolia, Peru, the 
Philippines, Singapore, Switzerland, Thailand, and Viet Nam, the ASEAN member countries, and 
the Trans -Pacific Partnership (TPP) member countries. All  of these agreements (except for the 
TPP) have entered into force. Japan initiated the TPP approval process by submitting the 
agreement to the Diet in March 2016. " 
 
In addition, it is also stated in the Report that "According to the authorities, a bill was  submitted to 
the Diet on 8 March 2016 to amend the AMA in order to align its enforcement procedures with 
common rules under the Trans -Pacific Partnership (TPP) competition chapter. The TPP, which has 
not yet entered into force, calls on members to allow c ompetition authorities to resolve alleged 
violations by mutual agreement with the companies concerned. This rule is expected to reduce the 
risk of enforcement -related business delays for companies operating within the TPP countries.  
 
Japan ratified TPP on 9th of December 2016, although the future of this Agreement is unknown. As 
well, as can be seen from para 3.92 in the Secretariat Report, Japan has started to amend some 
specific legislation on Anti -Monopoly Act.  
 
Question  
In this respect, could Japan kin dly give information whether it is planned to amend legislations in 
the context of TPP in other areas including SPS measures, technical regulations, patents, and other WT/TPR/M/351/Add.1  
 
- 251 - 
 
  measures affecting imports and exports in the near future? If positive, could Japan summ arize the 
details?  
 
RESPONSE  
The government of Japan has already completed the following necessary legislation and 
administrative orders toward the entry into force of the TPP Agreement. Most of those measures 
will come into force on the effective date of  the TPP Agreement.  
Overview of the Act on the Development of Related Legislation Following the Conclusion of the 
Trans -Pacific Partnership Agreement  
I. Overview  
1. Provisions for rule of origin procedures and safeguards, etc. will be provided/introduced.  (The 
Act on Temporary Measures concerning Customs, and the Act on the Provision of Information 
regarding Originating Goods Declared under the Agreement between Japan and Australia for an 
Economic Partnership)  
2. The following provisions concerning intelle ctual property will be established.  
(1) Provisions for extending the duration of copyrights and the ability to prosecute without a 
complaint in cases where copyright infringements meet certain criteria. (Copyright Act)  
(2) Provisions for extending the exem ption period for the lack of novelty of inventions, and the 
system of patent term extension. (Patent Act)  
(3) Provisions on compensation for damages caused by trademark counterfeiting. (Trademark Act)  
3. Provisions will be established on the registration a nd supervision, etc. of certification bodies 
located in foreign countries, which performing conformity assessment for medical devices. (The 
Law on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical 
devices)  
4. Provision s will be established enabling voluntary resolution of alleged violations of the 
Antimonopoly Act by consent of the Japan Fair Trade Commission and the companies. (Act on 
Prohibition of Private Monopolization and Maintenance of Fair Trade)  
5. Provisions wi ll be established on the provision of beef and pork subsidies, and measures 
concerning sugar price adjustments for imported products containing added sugar. (Act Concerning 
the Stabilization of Price of Livestock Products, Act on Price Adjustment of Sugar and Starch, and 
Act on the Agriculture & Livestock Industries Corporation, Independent Administrative Agency)  
6. Provisions will be established to enable mutual protection of geographical indications (GI) 
through international agreements with foreign count ries. (Act on Protecting the Names of Specific 
Agricultural, Forestry and Fishery Products)  
 
II. Effective Date  
The date of entry into force of the TPP Agreement in Japan (unless otherwise provided for).  
 
2.3.3 Trade and Investment Regime – Trade Agreement s and Arrangements – Other Agreements 
and Arrangements, pg. 25, para. 2.14  
 
"Under the GSP scheme, preferential tariff rates apply to 408 tariff lines at the HS 9 -digit level in 
Chapters 1 to 24 (agriculture and fisheries) and to 3,151 tariff lines in Chap ters 25 to 97 
(industrial products). 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. The preferential margin varie s from one product to another. " 
 
Question  
Could Japan kindly explain why textiles and clothing, leather and leather products, and footwear 
are excluded from the GSP Scheme?  
 
RESPONSE  
Certain textiles and apparel products, as well as leather, leather produc ts, and footwear, have 
been excluded from the GSP Scheme as a result of careful consideration of the needs of relevant 
domestic manufacturers . 
 WT/TPR/M/351/Add.1  
 
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  3.2.4 Trade Policies and Practices by Measure – Measures Directly Affecting Exports – 
Export Support and Promoti on, pgs. 45 -46, para. 3.74  
 
"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. J ETRO is an incorporated administrative agency under the 
Japan External Trade Organization Incorporated Administrative Agency Act of 2002. JETRO 
currently has 74 offices around the world. " 
 
Question  
Could Japan kindly give more detailed information about ex port and investment promotion  
activities of JETRO worldwide?  
 
RESPONSE  
1. Promoting trade and business between Japan and the rest of the world  
 
(1) Promoting export of agricultural, forestry, fishery and food products  
Through the Task Force for Agricultu ral, Forestry, Fishery and Food Export Promotion established 
in January 2012, JETRO is working together with the Ministry of Agriculture, Forestry and Fisheries 
of Japan, local governments and industrial associations involved in the field in order to expan d 
these exports and meet the growing demand for Japanese cuisine overseas. At food -related 
expositions abroad JETRO set up Japanese pavilions and hold business talks to help Japanese 
companies establish international partnerships. JETRO are also expanding business matching 
programs in which buyers are invited from abroad to come to Japan. Additionally, for buyers, 
retailers and food service providers of other countries, JETRO holds seminars at various places 
across the world to allow them to experience all of the delights Japanese food has to offer while 
providing information on recipes, production methods, history and quality.  
(2)Assisting market expansion of creative industries and the service sector  
Japan is a country rich in culture and history, and al so a leading center of design, innovation and 
entertainment. From traditional crafts with a modern appeal to animation, movies and cutting -
edge textiles, the Government of Japan has created a campaign called "Cool Japan" to redefine its 
reputation as a pio neer in design, fashion and entertainment.  
JETRO plays an important role in promoting and expanding business for these creative industries 
by providing various support such as offering business opportunities by participating in major trade 
shows and invit ing potential buyers through our overseas network.  
JETRO is eager and fully committed to support unique and attractive Japanese products and 
services to be showcased all over the world.  
(3)Promoting the Japan brand  
In addition to assisting Japanese SMEs  in exhibiting at major international fairs in developed 
countries, JETRO organizes Japan -related fairs in emerging markets with low penetration of 
Japanese products and brands to raise awareness of Japanese manufactures, technology and 
services. These fai rs, having been held in Egypt, Iraq, Laos, Myanmar, Pakistan and South Africa, 
are planned to be expanded to other regions.  
In Expo Milano 2015, scheduled for six months beginning May 2015, JETRO will set up and operate 
the Japan Pavilion on behalf the Go vernment of Japan. This pavilion will introduce Japanese food 
culture as well as food related industries, including agriculture, forestry and fisheries; food 
services; and plateware, cookware and furniture such as tables to people around the world. This 
exhibition is also expected to attract tourists to Japan.  
(4)Facilitating business ties of manufacturing and environmental industries  
Focusing on three priority areas of machinery and parts (industrial machinery, aircraft parts and 
materials for manufactur ing), life science (medical machinery and pharmaceutical and biological 
products) and environment and energy (water treatment, treatment and recycling of waste and 
energy conservation), JETRO presents Japanese products and services at large exhibitions aro und 
the world and invites prospective buyers, physicians and engineers to Japan, to facilitate business 
ties between Japanese companies and potential partners from overseas.  
In the Regional Industry Tie -Up (RIT) ProgramPDF file(179KB), JETRO supports busi ness 
networking and meetings between industry clusters of Japanese SMEs and those from overseas 
regions, aiming to facilitate export, technological partnership and joint development of products in 
software, contents and processed food as well as manufactur ing and environmental areas.  
(5)Advising on a range of business issues with Japan  
With a network of nearly 40 offices in Japan and more than 70 abroad, JETRO is positioned to help 
both overseas and Japanese companies develop their business. In addition t o website, local offices WT/TPR/M/351/Add.1  
 
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  offer trade and investment consultation services for businesses, trade associations and individuals. 
The subject matter can vary greatly, from simply providing a set of trade statistics to advising on 
specific procedures or strateg ies for exporting, importing or investing. Individuals are welcome to 
make inquiries by telephone or visit any JETRO office.  
 
Though in Japanese only, JETRO's publications are useful resources for business people, including 
JETRO Daily, or "Tsusho Kouhou"  (via e -mail magazine and web news), Food and Agriculture 
Weekly, the monthly JETRO SENSOR and the annual Agro -Trade Handbook. The annual JETRO 
Global Trade and Investment Report is also available in summarized form in both English and 
Japanese while the d etail analysis part is in Japanese.  
(6)Online business matching  
JETRO's international business matching site called TTPP (Trade Tie -up Promotion Program) is an 
all-free service for finding partners for international business.  
(7)Safeguarding intellectua l property  
JETRO also provides intellectual property protection services as part of its support for Japanese 
firms expanding operations abroad. Information is given regarding intellectual property systems of 
each country via informational manuals on count erfeit products, the Internet, seminars and study 
meetings. Dedicated staff and contracted experts are allocated to its headquarters in Tokyo and 
several overseas offices for consultation services. JETRO also supports Japanese SMEs in 
investigating actual cases of infringement including identifying manufacturers of counterfeit and 
pirated goods, distribution channels and circumstances surrounding sales of these items.  
2. Promoting foreign direct investment (FDI) into Japan  
JETRO, as a core organization fo r promoting FDI into Japan, offers foreign companies investing in 
Japan a broad range of support, including one -stop services, business matching opportunities in 
conjunction with exhibitions and information concerning the investment environment in Japan an d 
government incentive programs through seminars and its website.  
(1)"Investing in Japan" website  
JERTO's Investing in Japan website is a one -stop portal providing comprehensive information 
needed for FDI into Japan. Available in six languages*, the webs ite covers everything from (1) the 
investment environment in Japan (benefits of FDI into Japan, successful cases, etc.), (2) the 
investment environment in individual prefectures, (3) systems and procedures related to 
establishment of companies, (4) incenti ves related to FDI into Japan, to (5) an introduction of the 
JETRO Invest Japan Business Support Centers (IBSCs) located in major cities in Japan.  
*All information is available in English and Japanese, with limited information in German, French, 
Chinese a nd Korean. Chinese is available in two versions, simplified and traditional characters.  
(2)Providing one -stop services  
In more than 70 overseas offices, JETRO assists companies with investing in Japan by providing 
relevant information and individual cons ultation. At the Invest Japan Business Support Centers 
(IBSCs) located in six major cities across the country (Tokyo, Yokohama, Nagoya, Osaka, Kobe 
and Fukuoka), dedicated staff with long experience provides foreign companies with a range of 
ongoing suppor t from market surveys, consultation, business matching, to information provision 
and assistance services concerning administrative procedures for establishing companies and 
residence, via an extensive network with local governments and lawyers.  
To immedia tely respond to a broad range of inquiries concerning FDI into Japan, IBSCs provide 
experts including accountants, judicial scriveners, administrative scriveners, certified social 
insurance consultants, and ICT specialists, in addition to IBSC's dedicated staff. The centers also 
provide office space and access to meeting and conference rooms for foreign companies which 
have not yet launched an official office in Japan.  
(3)Attracting R&D sites and regional HQs of foreign companies  
JETRO seeks out and suppo rts foreign companies abroad and foreign -affiliated companies in Japan 
planning to establish new research and development facilities or regional headquarters. The 
organization also cooperates in operating the "Subsidy Program for Projects Promoting Asian S ite 
Location in Japan" initiated by the Government of Japan to attract these companies.  
 
Emphasis is additionally placed on active invitation in fields that are expected to introduce new 
business models and technologies such as environment and renewable e nergy, medical care and 
tourism, and companies in the logistics and retail industries that are expected to create new 
employment. In areas of focus, JETRO has been arranging business meetings between Japanese 
and foreign companies taking the opportunities of exhibitions held in Japan.  
(4)Publicizing advantages of Japan and benefits of its investment environment  
①Disseminating information through various public relations activities  WT/TPR/M/351/Add.1  
 
- 254 - 
 
  In addition to organizing symposiums and seminars in major cities abroad, JETRO publishes 
various publicity materials such as "Why Japan? "5 reasons to invest in Japan", an introduction of 
advantages and benefits of Japan as an investment destination, "Success Stories," case studies of 
successful investment, and " Regional Infor mation," with reports on local investment 
environments, to widely disseminate information across the world on the advantages the country 
and its environment possess.  
②Disseminating information on the investment environment after the earthquake  
JETRO provides accurate information including the up -to-date status of the investment 
environment in Japan after the Great East Japan Earthquake and incentive programs offered b y 
the Government of Japan for attracting foreign companies.  
(5)Successes achieved  
JETRO has supported more than 1,000 foreign companies in establishing business locations in 
Japan since its launch of the FDI program in fiscal 2003.  
 
3.3.1.2 Incentive sche mes, pp. 47, para. 3.8.3  
 
It is mentioned in the report that "Under the Industrial Competitiveness Enhancement Act, enacted 
on 4 December 2013, incentives are provided to boost investments in highly productive 
equipment; these incentives are to be abolishe d at the end of March 2017 (Table 3.10). The Act 
aims to implement the measures included in the Japan Revitalization Strategy, which was 
approved by the Cabinet on 14 June 2013 for the purpose of revitalizing the Japanese economy 
and enhancing the industri al competitiveness of enterprises doing business in Japan. " 
 
Question  
It is known that Japanese government plans to root out inefficiencies in the agricultural sector, 
encouraging realignment in areas such as animal feed to control excessive production cos ts and 
bring down elevated prices. Could Japan explain whether the Ministry of Agriculture, Forestry and 
Fisheries may and/or will use tax incentives to encourage such an industry realignment under the 
Industrial Competitiveness Enhancement Act, which fall s under the jurisdiction of the Ministry of 
Economy, Trade and Industry?  
 
RESPONSE  
Tax incentives under the Industrial Competitiveness Enhancement Act can be applied to industries 
related to agriculture under certain conditions. However, these incentives a re to be abolished at 
the end of March 2017.  
 
 
3.3.2 Trade Policies and Practices by Measure – Measures Affecting Production and 
Trade – Subsidies and Other Assistance Programmes, pg. 49, para. 3.88  
 
"For the purpose of regional development, the Government  maintains other specific 
programmes under the supervision of the Japan External Trade Organization (JETRO) at the METI. " 
 
Question  
Could Japan kindly elaborate on specific programmes conducted under the supervision of JETRO 
for the purpose of regional dev elopment?  
 
RESPONSE  
In order to contribute to regional economic vitalization, JETRO is working together with local 
governments that are actively attracting foreign companies. For example, JETRO provides support 
for formulation of local governments' strate gies for attracting foreign companies, and cooperates 
with local governments in top -level sales, investment promotion seminars, approaches to target 
companies, and support for foreign companies establishing business bases.  
In FY2016, JETRO started a traini ng program for local officials in charge of attracting foreign 
companies, including officials of local governments and Chambers of Commerce and Industry, to 
learn skills and knowledge necessary for attracting enterprises.  
 
3.3.3.1 Recent development, pp. 5 0, para. 3.92  
 
It is mentioned in the report that "…According to the authorities, a bill was submitted to the Diet 
on 8 March 2016 to amend the AMA in order to align its enforcement procedures with common 
rules under the Trans -Pacific Partnership (TPP) com petition chapter. The TPP, which has not yet WT/TPR/M/351/Add.1  
 
- 255 - 
 
  entered into force, calls on members to allow competition authorities to resolve alleged violations 
by mutual agreement with the companies concerned. " 
 
Question  
Could Japan provide its comments on the future pro spects of TPP taking into consideration the 
recent international developments?  
 
RESPONSE  
The TPP Agreement is intended to establish new common rules for the 21st century in the Asia -
Pacific region and form a huge free and fair economic zone. It also seeks to deepen and broaden 
economic ties among countries and regions that share fundamental values such as freedom, 
democracy, basic human rights, and the rule of law, and is hence strategically significant in terms 
of pursuing further regional stability.   In light of the significance of the TPP, the Government of 
Japan notified the Depositary of the completion of Japan's domestic procedures for the TPP. The 
Government of Japan intends to continue to closely consult with other original signatories on the 
future of the TPP and tenaciously encourage them to promptly complete their domestic procedures 
toward the entry into force of the TPP Agreement.  
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 59, PAR A. 3.122  
 
It is stated in the Secretariat Report that "The main changes also include the amendment in 2015 
of the 1960 Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals 
and Medical Devices, which transferred the authority to issue licences to specially controlled 
medical device sellers from prefectures to designated cities and specified districts. "  
 
Question  
Could Japan give detailed information whether the amendment in question is only made for 
medical devices or also covers pharmaceuticals? If so, to what extent does it change  the role of 
Pharmaceuticals and Medical Devices Agency (PMDA) of Japan in terms of its authorization and 
certification of these products based upon its GMP, GDP, GLP, GCP inspections? What was the main 
rationale behind transferring the authority from pref ectures to designated cities and specified 
districts?  
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 62, PAR A. 3.130  
 
It is stated in the Secretariat Report that "Regarding Japan Agricultural Standards (JAS), two JAS 
(the JAS for Organic Plants and  the JAS for Organic Processed Foods of Organic Plants) are 
technical regulations, whereas all other JAS are standards but not technical regulations. The JAS 
for Organic Plants was revised in December 2015 and in February 2016, while the JAS for Organic 
Processed Foods of Organic Plants was revised in March 2015 and in February 2016. 58 other JAS 
have been revised since 2014 and three JAS have been withdrawn. At the end of March 2016, the 
total number of JAS in force was 201 and the number of JAS correspond ing with international 
standards was 80; the proportion of JAS harmonized with international standards was 78%. " 
 
In Japan 's previous TPRM report (WT/TPR/S/310/Rev.1), the harmonization level of JAS with 
international standards was 77%. Now, this level sli ghtly increased to 78%.  
 
Question  
Could Japan kindly give information whether it has any roadmap to increase the number of JAS 
harmonized with international standards in the near future? Could Japan give more information on 
the non -harmonized standards wi th international standards (22% of all standards) and in which 
areas does Japan h ave to use different standards?  
 
RESPONSE  
There is no specific roadmap to increase the number of JAS harmonized with international 
standards.  
JAS not in harmony with related i nternational standards, which accounts for 22% of JAS where 
there are related international standards, includes canned asparagus, fruits juices, etc.  
 WT/TPR/M/351/Add.1  
 
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  3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 62, PAR A. 3.132  
 
It is stated in the Secretariat Rep ort that "Approximately 7,814 domestic and 905 foreign factories 
in 21 countries and economies are certified to affix JIS marks (JIS Mark Scheme). The JIS Mark 
scheme is voluntary, while some regulations refer to JIS as an option to fulfil relevant technic al 
requirements. 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, based on ISO/IEC 17065. As at October 2015, 24 o rganizations were accredited as 
JIS mark certification bodies. " 
 
Question  
In this respect, could Japan kindly give information which regulations refer to JIS as an option to 
fulfill the r elevant technical requirements?  
 
RESPONSE  
Major laws referring JIS ar e Act on Securing Quality, Efficacy and Safety of Products including 
Pharmaceuticals and Medical Devices, Fire Service Act, Building Standards Act, Industrial Safety 
and Health Act, Measurement Act, and Act on Safety Assurance and Quality Improvement of 
Feeds. 
 
3.3.6 STANDARDS AND OTHER TECHNICAL REQU IREMENTS PG. 63, PAR A. 3.134  
 
It is stated in the Secretariat Report that "Since the last review there have been no regulatory 
reforms concerning conformity assessment, acceptance of foreign test results and fo reign 
certification, or the number of designated inspection bodies in the Consumer Product Safety Act 
and Electrical Appliance and Material Safety Law. "  
 
Question  
Could Japan give detailed information on the functioning of its MRAs with the EU currently c overing 
4 sectors (electric equipment, telecommunication, pharmaceuticals and chemicals)? Could Japan 
briefly share its approach regarding the extension the scope of those MRAs in terms of adding new 
sectors such as motor vehicles, medical devices etc. or deepening the coverage of the existing 
ones as well as incorporating them under its Economic and Partnership Agreement (EPA) with the 
EU in the near future?  
 
RESPONSE  
The Mutual Recognition Agreement with the EU (the Agreement), which came into force on 1 
January 2002, aims to facilitate market access and promote trade between Japan and the EU by 
reducing the cost for companies engaging in trade in the areas of telecommunications equipment, 
electrical products, chemicals and medicinal products.  
 
In the sect ors of telecommunications terminal equipment and radio equipment as well as electrical 
products, Japan and the EU accept the result of conformity assessment procedures conducted by 
the registered conformity assessment bodies of the other Party, in accordan ce with the 
Agreement.  
 
In the sector of chemicals, Japan and the EU accept the data generated by test facilities in the 
other Party which are confirmed to be in compliance with the principles of good laboratory practice 
(GLP) for the testing of chemicals of the other Party, in accordance with the Agreement.  
 
In the sector of pharmaceuticals, Japan and the EU accept certificates issued per each batch by 
confirmed manufacturing facilities which comply with good manufacturing practice (GMP) 
requirements, and accordingly both Japan and the EU exempt the importers of medicinal products 
from the testing of each batch, in accordance with the Agreement.  
    
The Government of Japan has no plan, at this moment, to add new sectors such as motor vehicles 
and medical de vices and to expand the scope of the Agreement or to deepen existing sectors. Any 
discussion on expansion or deepening of the scope of the Agreement will be conducted through the 
Joint Committee established by the Agreement.  
 
 WT/TPR/M/351/Add.1  
 
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  3. TRADE POLICIES AN D PRACTIC ES IN MEASURE 3.3.9 GOVERNMENT PROCUREME NT 
PG. 67, PARA. 3.163  
 
It is stated in the Secretariat Report that "All Economic Partnership Agreements signed by Japan, 
except those with ASEAN and with Malaysia, have government procurement provisions The TPP 
also contains a government procurement chapter. Japan's GP commitments under the TPP are 
roughly the same as its WTO GPA commitments. " 
 
Question  
Could Japan explain the rationale for the absence of Government Procurement Chapter under FTAs 
with ASEAN and Mala ysia?  
 
3. TRADE POLICIES AN D PRACTICES IN MEASU RE 3.3.10.6 GEOGRAPH ICAL 
INDICATIONS PG. 81, PARA. 3.191  
 
It is stated in the Secretariat Report that "The new law for protecting geographical indications (Act 
on Protection of the Names of Specific Agricultu ral, Forestry and Fishery Products and Foodstuffs) 
was prepared by the Ministry of Agriculture, Forestry and Fisheries, and came into force in June 
2015. It applies only to geographical indications of foods, beverages, and agricultural and marine 
products.  
 
Question  
Could Japan explain what kind of legal or administrative protection is provided for other product 
categories (example: handcrafts) exc ept specified in the paragraph?  
 
RESPONSE  
The protection based on the Article 22.2 of the TRIPS Agreement has b een provided by the Unfair 
Competition Prevention Act for all the products in Japan. Additionally, agricultural, forestry and 
fishery products and foodstuffs are given higher protection by the Act on Protection of the Names 
of Specific Agricultural, Forest ry and fishery Products and Foodstuffs.  
 
3. TRADE POLICIES AN D PRACTICES IN MEASU RE 3.3.10.6 GEOGRAPH ICAL 
INDICATIONS PG. 81, TABLE 3.36 INFORMATI ON ON REGISTERED GIS  
 
It is stated in the Secretariat Report that  
 
Registration No.  Name  Category of produc ts  Date  
9  Kumamoto Rush Mats 
Kumamoto kensan Igusa Tatami 
omote  Class 41: Tatami facings (Rush 
Tatami Facing)  2/2/2016  
 
Question  
Could Japan explain the rationale for the registration of "Kumamoto Rush Mats Kumamoto kensan 
Igusa Tatami omote "as an  agricultural GI "? Is it possible to register rugs and mats as an 
agricultural GI under the Act?  
 
RESPONSE  
The GI Act protects agricultural, forestry and fishery products and foodstuffs, and also processed 
products using agricultural, forestry and fishery  materials.  
Regarding the non -food products using agricultural, forestry and fishery materials, items to be 
protected as GI are decided by Cabinet Ordinance considering the necessity of protection in Japan .  
Rugs and mats are not subject to be protected a s GI at this point.  
 
 
3.3.10.10 The 2015 IP strategic programmes, pp. 86, para. 3.216  
 
It is mentioned in the report that "Japan has a vast content industry. It includes mainly 
anime/manga, movies, music, games, and broadcast programmes. However its relate d exports 
remained limited. The strategic programme seeks to tap the potential of the industry, through 
various export promotion measures. " 
 WT/TPR/M/351/Add.1  
 
- 258 - 
 
  Question  
One of the main aims of the Cool Japan Strategy is to promote the overseas advancement of the 
content indu stry. Could Japan provide detailed information on how it measures and evaluat es the 
success of the strategy?  
 
RESPONSE  
Currently, no key performance indicator (KPI) has been set about the "Cool Japan Strategy" as a 
whole.  
The development of the content in dustry is one of the principal objectives of the "Cool Japan 
Strategy", and KPI for this industry has been set to increase broadcasting content -related sales 
value in foreign market by three times  compared to the value in FY2010  by the end of FY2018.  
 
4.1.2.2 Trade policies, pp.92, para. 4.13  
 
Concerning agricultural products, it is mentioned in the report that "Since Japan's previous review, 
there has been little change to market access measures (tariffs, the special safeguard, and tariff 
quotas). The rela tively high tariffs have helped to maintain higher domestic than world prices. " 
 
Question  
In addition to these market access measures, Japan has a sophisticated application system to 
import agricultural products. Could Japan explain if there are any plans to change the system?  
 
RESPONSE  
Japan have electronic application system for all kind of import items and there are not any plan to 
change.  
 
4.1 AGRICULTURE 4.1. 2.3.4 FRUITS AND VEG ETABLES PG. 95, PARA . 4.32  
 
It is stated in the Secretariat Report that "Under the revised Policy, financial assistance is to be 
increased for converting production to more valuable fruits (defined as profitable fruits or highly 
valued varieties) and for on -farm improvements. " 
 
Question  
Could Japan kindly explain which fruits are  named as more valuable fruits? If possible, could Japan 
provide the whole list of those products categorized as more valuable fruits benefited from 
financial assistance?  
 
RESPONSE  
Farmers are supposed to select fruits and/or varieties to be promoted for revenue improvement 
when they make "Fruits Production Restructuring Plans" based on "the Basic Policy for Fruit 
Industry Promotion".  
Therefore, the categorized list does not exist.  
 
4.1.2.4.2 OECD INDIC ATORS PG. 97, PARA. 4.47 
 
It is stated in the Secreta riat Report that "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 it is provided by a comprehensive set of policies ranging from tariffs a nd 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 research, and 
extension services. Market price support is the main component and it, along with other transfers 
based on output and inputs, is categorized by the OECD as one of the potentially most production - 
and trade -distorting forms of support. " 
 
Question  
Could Japan indicate whether it has any intention to change the structure  of its agricultural 
support? In other words, in the near future is it planned to abolish or somehow reduce the share of 
the market price support system which is found by OECD as one of the most production - and 
trade - distorting forms of support?  
 WT/TPR/M/351/Add.1  
 
- 259 - 
 
  4.2 Fis heries,  pp. 99, para. 4.52  
 
It is mentioned in the report that "The average applied MFN tariff 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 t ariffs, unchanged since Japan's previous review… " 
 
Question  
Could Japan comment on if there has been any change in regulations regarding the import control 
system, including import approval and acknowledgements?  
 
RESPONSE  
Farmers are supposed to select fru its and/or varieties to be promoted for revenue improvement 
when they make "Fruits Production Restructuring Plans" based on "the Basic Policy for Fruit 
Industry Promotion".  
Therefore, the categorized list does not exist.  
 
Other Questions  
 
2.2 Trade Policy  Objectives, pp. 23, para. 2.5  
 
It is mentioned in the report that  "Since its previous review, Japan's trade policy objectives have 
remained unchanged. It has continued to promote both the multilateral trading system and 
bilateral and regional trade agreem ents; Japan considers that those agreements are 
complementary to, not a substitute for, the multilateral trading system. The authorities state that 
the WTO should continue to play a central role in promoting economic growth and development, 
whilst bilatera l and regional trade agreements also play an important role. "  
 
Question  
Concerning the liberalization in agricultural trade, does Japan agree on the theory that FTAs are a 
more effective instrument for opening Japan's agricultural market than the WTO beca use they 
reshape the domestic trade policy in ways that are encouraging to further market opening by 
altering the domestic trade policymaking on the demand side as well as some aspects of the 
supply side?  
 
 
33. EL SALVADOR  
Q.1 During the previous review of  Japan's trade policies in 2015, a number of members expressed 
concern about the non -consolidation of a certain percentage of tariff lines as well as the 
maintenance of tariff peaks for agricultural products. In this regard, Japan responded that these 
aspects will depend on the outcome of the completion of the Doha round. Under the current status 
of the Doha Round, does Japan plan to consolidate its tariff lines and reduce tariff peaks 
unilaterally? What perspectives does Japan have on the development and f inalization of the Doha 
Round negotiations?  
 
RESPONSE  The current level of tariffs was a result of the UR negotiations. We cannot prejudge the 
future development of the negotiations.  
 
Pregunta 2: ¿Podría explicarnos la delegación de Japón cuales eran los resultados esperados al 
adoptar un nuevo sistema para la tramitación de los modelos de utilidad para hacer más atractivo 
el régimen? ¿Era la tendencia hacia la baja de las solicitudes el efecto esperado de la medida? En 
caso contrario, ¿puede indicar si se  están tomando o se tomarán medidas y, en tal caso, qué tipo 
de medidas se estarían adoptando para aumentar la demanda? ¿Cómo están incluidos los modelos 
de utilidad en la Visión?  
 
A. No policy regarding utility model is mentioned in the "Intellectual Prop erty Policy Vision. " The 
main reason for the decrease of the number of applications is that we adopted non -substantive 
examination principle. We have not taken any new measures to increase the number of 
applications.  
 
 WT/TPR/M/351/Add.1  
 
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  34. SAUDI ARABIA, KI NGDOM OF  
Q1. The Kingdom of Saudi Arabia welcomes the protection of consumers ' measure in the field of 
telecommunication and would appreciate to have more information from Japan about this 
measure.  
 
A. Please see attached.  
 
 
 
35. OMAN  
Question:1  
From Japan's perspective,  what impact will it entail now that the USA has decided to exit the TPP? 
" 
 
RESPONSE  
The TPP Agreement is intended to establish new common rules f or the 21st century in the 
Asia-Pacific region and form a huge free and fair economic zone. It also seeks to deepen and 
broaden economic ties among countries and regions that share fundamental values such as 
freedom, democracy, basic human rights, and the rule of law, and is hence strategically significant 
in terms of pursuing further regional stability. In light  of the significance of the TPP, the 
Government of Japan notified the Depositary of the completion of Japan 's domestic procedures for 
the TPP. The Government of Japan intends to continue to closely consult with other original 
signatories on the future of t he TPP and tenaciously encourage them to promptly complete their 
domestic procedures toward the entry into force of the TPP Agreement.  
 
  
  WT/TPR/M/351/Add.1  
 
- 261 - ANNEX  
List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
No. Name  Other Name  Chemical Structure  Date of Enforcement  
1 Isobutyl nitrite     
April 1, 2007  
2 Isopropyl nitrite     
April 1, 2007  
3 Isopentyl nitrite  Isoamyl nitrite   
April 1, 2007  
4 tert-Butyl nitrite     
April 1, 2007  
5 Cyclohexyl nitrite     
April 1, 2007  
6 Butyl nitrite     
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 262 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
7 4-Acetoxy -N-isopropyl -N-metyltryptamine  4-AcO-MIPT  
April 4, 2015  
8 4-Acetoxy -N-ethyl-N-methyltryptamine  4-AcO-MET  
August 8, 2015  
9 4-Acetoxy -N,N-diallyltryptamine  4-AcO-DALT  
August 8, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 263 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
10 4-Acetoxy -N,N-diisopropyltryptamine  4-AcO-DIPT  
April 1, 2007  
11 4-Acetoxy -N,N-diethyltryptamine  4-AcO-DET  
August 8, 2015  
12 4-Acetoxy -N,N-dimethyltryptamine  4-AcO-DMT  
August 8, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 264 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
13 N-(1-Adamantyl) -1-(5-chloropentyl) -1H-
indazole -3-carboxamide  APINACA N-(5-chloropentyl) analog   
April 18, 2016  
14 N-(1-Adamantyl) -1-(4-fluorobenzyl) -1H-
indazole -3-carboxamide  FUB-APINACA   
January 5, 2015 
 
  WT/TPR/M/351/Add.1  
 
- 265 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
15 N-(1-Adamantyl) -1-(5-fluoropentyl) -1H-
indazole -3-carboxamide  5F-APINACA 5F-AKB48 APINACA N -(5-
fluoropentyl) derivative   
May 30, 2013  
16 N-(1-Adamantyl) -1-(5-fluoropentyl) -1H-
indole -3-carboxamide  APICA N -(5-fluoropentyl) derivative  
STS-135  
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 266 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
17 N-(1-Adamantyl) -1-pentyl -1H-indazole -3-
carboxamide  APINACA  
AKB48   
July 1, 2012  
18 1-Adamantyl(1 -pentyl -1H-indol-3-
yl)methanone  AB-001  
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 267 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
19 N-(1-Adamantyl) -1-pentyl -1H-indole -3-
carboxamide  APICA  
2NE1   
July 1, 2012  
20 1-Adamant yl{1-[(1-methylpiperidin -2-
yl)methyl] -1H-indol-3-yl｝methanone  AM1248   
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 268 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
21 N-(1-Amino -1-oxo-3-phenylpropan -2-yl)-1-
(cyclohexylmethyl) -1H-indazole -3-
carboxamide  APP-CHMINACA  
PX-3  
September 3, 2016  
22 N-(1-Amino -1-oxo-3-phenylpropan -2-yl)-1-
(4-fluorobenzyl) -1H-indazole -3-carboxamide  FU-PX-2  
August 29, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 269 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
23 N-(1-Amino -1-oxo-3-phenylpropan -2-yl)-1-
(5-fluoropentyl) -1H-indazole -3-carboxamide  PX-2  
November 28, 2014  
24 N-(1-Amino -1-oxo-3-phenylpropan -2-yl)-1-
(5-fluoropentyl) -1H-indole -3-carboxamide  PX-1  
November 28, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 270 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
25 N-(1-Amino -3,3-dimethyl -1-oxobutan -2-yl)-
1-(cyclohexylmethyl) -1H-indazole -3-
carboxamide  ADB-CHMINACA   
September 29, 2014  
26 N-(1-Amino -3,3-dimethyl -1-oxobutan -2-yl)-
1-(4-fluorobenzyl) -1H-indazole -3-
carboxamide  ADB-FUBINACA   
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 271 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
27 N-(1-Amino -3,3-dimethyl -1-oxobutan -2-yl)-
1-(5-fluoropentyl) -1H-indazole -3-
carboxamide  5F-ADB-PINACA   
November 28, 2014  
28 N-(1-Amino -3,3-dimethyl -1-oxobutan -2-yl)-
1-(5-fluoropentyl) -1H-indole -3-carboxamide  5-fluoro -ADBICA   
February 9, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 272 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
29 N-(1-Amino -3,3-dimethyl -1-oxobutan -2-yl)-
1-pentyl -1H-indazole -3-carboxamide  ADB-PINACA   
July 11, 2014  
30 N-(1-Amino -3,3-dimethyl -1-oxobutan -2-yl)-
1-pentyl -1H-indole -3-carboxamide  ADBICA   
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 273 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
31 2-Amino -1-(4-bromo -2,5-
dimethoxy phenyl)ethanone  bk-2C-B  
April 4, 2015  
32 N-(1-amino -3-methyl -1-oxobutan -2-yl)-1-(5-
chloropentyl) -1H-indazole -3-carboxamide  5Cl-AB-PINACA   
November 8, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 274 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
33 N-(1-Amino -3-methyl -1-oxobutan -2-yl)-1-
(cyclohexylmethyl) -1H-indazole -3-
carboxamide  AB-CHMINA CA  
July 25, 2014  
34 N-(1-Amino -3-methyl -1-oxobutan -2-yl)-1-(2-
fluorobenzyl) -1H-indazole -3-carboxamide  AB-FUBINACA 2 -fluorobenzyl isomer   
December 5, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 275 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
35 N-(1-Amino -3-methyl -1-oxobutan -2-yl)-1-(4-
fluorobenzyl) -1H-indazole -3-carboxamide  AB-FUBINACA   
January 16, 2013  
36 N-(1-Amino -3-methyl -1-oxobutan -2-yl)-1-(5-
fluoropentyl) -1H-indazole -3-carboxamide  5‐Fluoro‐AB‐PINACA   
July 11, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 276 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
37 N-(1-Amino -3-methyl -1-oxobutan -2-yl)-1-(5-
fluoropentyl) -1H-indole -3-carboxamide  5-Fluoro -ABICA   
August 25, 2014  
38 N-(1-Amino -3-methyl -1-oxobutan -2-yl)-1-
pentyl -1H-indazole -3-carboxamide  AB-PINACA   
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 277 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
39 2-(4-Allyloxy -3,5-
dimethoxyphenyl)ethanamine  Allylescaline   
April 4, 2015  
40 1-(4-Isopropylsulfanyl - 2,5-
dimethoxyphenyl)propan -2-amine  ALEPH -4  
May 14, 2011  
41 N-Isopropyl -N-methyltryptamine  MIPT  
April 1, 2007  
42 Ｎ-Isopropyl -5-methoxy -N-methyltryptamine  5-MeO-MIPT  
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 278 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
43 Nitrous oxide  SIVAGUS  N2O February 28, 2016  
44 Indan -2-amine  2-AI  
January 11, 2008  
45 1-(Indan -5-yl)-2-(pyrrolidin -1-yl)butan -1-
one α-PBP indane analog  
5-PPDI  
February 9, 2015  
46 1-(Indan -5-yl)-2-(pyrrolidin -1-yl)hexan -1-
one α-PHP indane analog  
5-BPDI  
February 27, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 279 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
47 (1H-Indol-3-yl)(2,2,3,3 -
tetramethylcycropropan -1-yl)methanone  DP-UR-144  
September 29, 2014  
48 1-(1H-Indol-5-yl)propan -2-amine  5-API5-IT  
January 16, 201 3 
49 2-(Ethylamino) -1-(indan -5-yl)butan -1-one bk-IBP  
February 9, 2015  
50 2-(Ethylamino) -1-(indan -5-yl)pentan -1-one bk-IVP  
February 9, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 280 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
51 N-Ethyl-N-isopropyl -5-methoxytryptamine  5-MeO-EIPT  
January 16, 2009  
52 N-Ethyl-1,2-diphenylethylamine  Ephenidine  
EPE 
NEDPA   
November 11, 2016  
53 2-(4-Ethyl-2,5-dimethoxyphenyl)ethanamine  2C-E  
April 1, 2007  
54 2-(4-Ethyl-2,5-dimethoxyphenyl) -N-(2-
methoxybenzyl)ethanamine  25E-NBOMe   
June 1, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 281 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
55 1-(4-Ethylsulfanyl -2,5-
dimethoxyphenyl)propan -2-amine  ALEPH -2  
January 16, 2009  
56 N-Ethyl-4-hydroxy -N-methyltryptamine  4-OH-MET  
April 4, 2015  
57 Ethyl 2 -[1-(4-fluorobenzyl) -1H-indazole -3-
carboxamido] -3-methylbutanoate  EMB-FUBINACA  
FUB-AEB  
September 3, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 282 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
58 Ethyl 2 -[1-(5-fluoropentyl) -1H-indazole -3-
carboxamido] -3-methylbutanoate  5F-AEB  
July 2, 2016  
59 N-Ethyl-N-[2-(5-methoxy -1H-indol-3-
yl)ethyl]propan -1-amine  5-MeO-EPT  
May 14, 2011  
60 N-Ethyl-1-(4-methoxyphenyl)propan -2-amine  PMEA   
September 29, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 283 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
61 2-(4-Ethoxy -3,5-
dimethoxyphenyl)ethana mine Escaline   
December 31, 2016  
62 1-(4-Ethoxy -3,5-dimethoxyphenyl)propan -2-
amine  3C-E  
April 4, 2015  
63 2-(1-Oxo-1-phenylpropan -2-yl)isoindoline -
1,3-dione  Phthalimidopropiophenone   
September 29, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 284 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
64 Quinolin -8-yl 1 -(cyclohexylmethyl) -1H-
indole -3-carboxylate  QUCHIC  
BB-22  
November 20, 2013  
65 Quinolin -8-yl 1-（4-fluorobenzyl) -1H-indazole -
3-carboxylate  FUB-NPB-22  
February 27, 2015  
66 Quinolin -8-yl 1-（4-fluorobenzyl) -1H-indole -3-
carboxylate  FUB-PB-22  
July 11, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 285 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
67 Quinoline -8-yl 1 -(5-fluoropentyl) -1H-
indazole -3-carboxylate  5-Fluoro -NPB-22  
August 25, 2014  
68 Quinolin -8-yl 1 -pentyl(1 H-indole) -3-
carboxylate  QUPIC  
PB-22  
May 30, 2013  
69 5-Chloro -3-ethyl-N-[4-(piperidin -1-
yl)phenethyl] -1H-indole -2-carboxamide  Org27569   
April 4, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 286 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
70 2-(4-Chloro -2,5-
dimethoxylphenyl)ethanamine  2C-C  
April 1, 2007  
71 2-(4-Chloro -2,5-dimethoxyphenyl) -N-(3,4,5-
trimethoxybenzyl)ethanamine  30C-NBOMe  
C30-NBOMe   
June 1, 2015  
72 2-(4-Chloro -2,5-dimethoxyphenyl) -N-(2-
fluorobenzyl)ethanamine  25C-NBF  
September 29, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 287 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
73 1-(4-Chloro -2,5-dimethoxyphenyl)propan -2-
amine DOC  
January 16, 2009  
74 2-[(4-Chloro -2,5-
dimethoxyphenethylamino)methyl]phenol  25C-NBOH   
July 4, 2015  
75 1-(4-Chlorophenyl)propan -2-amine  4Cl-AMP  
August 25, 2014  
NH2 O
Cl O
 
  WT/TPR/M/351/Add.1  
 
- 288 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
76 2-(2-Chlorophenyl) -1-(1-penty -1H-indol-3-
yl)ethanone  JWH-203  
October 20, 2011  
77 Salvinorine A  
(including Salvia Divinorum )    
April 1, 2007  
78 N,N-Diisopropyltryptamine  DIPT  
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 289 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
79 3-Diethylamino -2,2-dimethylpropyl 4 -
aminobenzoate  Dimethocaine   
June 1, 2015  
80 N,N-Diethyl -4-hydroxytryptamine  4-OH DET   
May 30, 2013  
81 N,N-Diethyl -7-methyl -4-propionyl -
4,6,6a,7 ,8,9-hexahydroindolo[4,3 -
fg]quinoline -9-carboxamide  1P-LSD  
April 18, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 290 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
82 N,N-Diethyl -5-methoxytryptamine  5-MeO-DET  
April 1, 2007  
83 2-[1-(Cyclohexylmethyl) -1H-indazole -3-
carboxamido] -3-methylbutanoic acid  CHMINACA -BA  
September 29, 2014  
84 3,4-Dichloro -N-[2-
(dimethylamino)cyclohexyl] -N-
methylbenzamide  Ｕ-47700   
December 31, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 291 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
85 1-(2,3-Dichlorophenyl)piperazine  2,3-DCPP   
May 30, 2013  
86 2-(3,4-Dichlorophenyl) -2-(piperidin -2-
yl)acetate  3,4-Dichloromethylphenidate   
April 5, 2014  
87 4-(3,4-Dichlorophenyl) -7-methoxy -2-methyl -
1,2,3,4 -tetrahydroisoqui noline  Diclofensine   
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 292 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
88  1-(2,3-Dihydrobenzofuran -5-yl)-2-
(pyrrolidin -1-yl)pentan -1-one 5-DBFPV   
November 28, 2014  
89 1-(2,3-Dihydrobenzofuran -5-yl)propan -2-
amine  5-APDB   
April 5, 2014  
90 1-(2,3-Dihydrobenzofuran -6-yl)propan -2-
amine  6-APDB   
September 26, 2015  
91 1-(2,3-Dihydrobenzofuran -5-yl)-N-
methylpropan -2-amine  5-MAPDB   
December 5, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 293 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
92 1-(1,2-Diphenylethyl)piperidine  Diphenidine   
August 25, 2014  
93 Diphenyl(pyrrolidin -2-yl)methanol  Diphenylprolinol  
D2PM   
November 20, 200 9 
94 2-(Diphenylmethyl)piperidine  2-DPMP  
Desoxypipradrol   
April 18, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 294 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
95 2-(Diphenylmethyl)pyrrolidine  Desoxy -D2PM   
May 30, 2013  
96 1-[(2,2-Difluorobenzo[ d][1,3]dioxol -5-
yl)methyl]piperazine  DF-MDBP   
December 25, 2015  
97 N,N-Dipropyltryptamine  DPT  
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 295 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
98 2-[(Dimethylamino)methyl] -1-(3-
hydroxyphenyl)cyclohexanol  O-Desmethyltramadol  
O-DSMT   
November 11, 2016  
99 1-(3,4-Dimethylphenyl) -2-
(ethylamino)butan -1-one 3,4-Dimethyl -NEB 
3,4-Dimethyl -α-
ethylaminobutiophenone   
February 9, 2015  
100 1-(3,4-Dimethylphenyl) -2-
(ethylamino)pentan -1-one 3,4-Dimethyl -α-
ethylaminopentiophenone   
February 9, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 296 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
101 1-(3,4-Dimethylphenyl) -2-(pyrrolidin -1-
yl)pentan -1-one 3,4-Dimethyl -α-PVP  
April 4, 2015  
102 2-(2,5-Dimethoxy -4-nitrophenyl)ethanamine  2C-N  
July 11, 2014  
103 1-(2,5-Dimethoxy -4-nitrophenyl)propan -2-
amine  DON  
September 24, 2010  
 
  WT/TPR/M/351/Add.1  
 
- 297 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
104 2-(2,5-Dimethoxyphenyl)ethanamine  2C-H  
September 29, 2014  
105 1-(3,4-Dimethoxyphenyl) -2-
(ethylamino)pentan -1-one DL-4662  
August 25, 2014  
106 1-(3,4-Dimethoxyphenyl) -2-(pyrrolidin -1-
yl)hexan -1-one 3,4-Dimethoxy -α-PHP  
November 28, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 298 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
107 1-(3,4-Dimethoxyphenyl) -2-(pyrrolidin -1-
yl)pentan -1-one 3,4-Dimethoxy -α-PVP  
April 5, 2014  
108 1-(3,4-Dimethoxyphenyl) -2-
(methylamino)propan -1-one 3,4-Dimethoxymethcathinone   
July 2, 2016  
109 2-(2,5-Dimethoxyphenyl) -N-(2-
methoxybenzyl)ethanamine  25H-NBOMe   
April 5, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 299 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
110 2-(2,5-Dimethoxy -4-
propylphenyl)ethanamine  2C-P  
April 4, 2015  
111 2-(2,5-Dimethoxy -4-
methylp henyl)ethanamine  2C-D  
January 31, 2016  
112 {1-[(Tetrahydropyran -4-yl)methyl] -1H-indol-
3-yl}(2,2,3,3 -tetramethylcyclopropan -1-
yl)methanone  A-834735   
July 28, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 300 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
113 （2,2,3,3 -Tetramethylcyclopropan -1-yl)[1-
(4,4,4 -trifluorobutyl) -1H-indol-3-
yl]methanon e XLR-12  
July 11, 2014  
114 (2,2,3,3 -Tetramethylcyclopropan -1-yl)(1-
pentyl -1H-indol-3-yl) methanone  UR-144  
November 16, 2012  
115 2-(2,4,5 -Trichloro -3,6-
dimethoxyphenyl)ethanamine  2C-C-3  
September 24, 2010  
 
  WT/TPR/M/351/Add.1  
 
- 301 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
116 1-(2,4,6 -Trimethoxyphenyl)propan -2-amine TMA-6  
April 1, 2007  
117 Ethyl 2 -(naphthalen -2-yl)-2-(piperidin -2-
yl)acetate  Ethylnaphthidate, HDEP -28  
July 2, 2016  
118 Methyl 2 -(naphthalen -2-yl)-2-(piperidin -2-
yl)acetate  Methylnaphthidate  
HDMP -28  
December 5, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 302 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
119 1-(Naphthalen -2-yl)-2-(pyrrolidin -1-
yl)pentan -1-one Naphyrone   
October 20, 2011  
120 Naphthalen -1-yl 1 -(4-fluorobenzyl) -1H-
indole -3-carboxylate  FDU-PB-22  
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 303 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
121 Naphthalen -1-yl 1 -(5-fluoropentyl) -1H-
indazole -3-carboxylate  5-Fluoro -SDB-005  
August 25, 2014  
122 N-(Naphthalen -1-yl)-1-(5-fluoropentyl) -1H-
indole -3-carboxamide  5F-NNE1   
November 20, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 304 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
123 Naphthalen -1-yl 1 -(5-fluoropentyl) -1H-
indole -3-carboxylate  NM2201   
November 8, 2014  
124 Naphthalen -1-yl(1-pentyl -1H-indazol -3-
yl)methanone  THJ-018 
JWH-018 indazo le analog   
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 305 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
125 N-(Naphthalen -1-yl)-1-pentyl -1H-indazole -3-
carboxamide  NNE1 indazole analog             MN-18   
April 5, 2014  
126 Naphthalen -1-yl 1 -pentyl -1H-indazole -3-
carboxylate  SDB-005  
November 8, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 306 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
127 N-(Naphthalen -1-yl)-1-pentyl-1H-indole -3-
carboxamide  NNE1  
MN-24  
November 20, 2013  
128 Naphthalen -1-yl[4-(pentyloxy)naphthalen -1-
yl]methanone  CB-13 
CRA13   
July 1, 2012  
 
  WT/TPR/M/351/Add.1  
 
- 307 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
129 Naphthalen -1-yl(9-pentyl -9H-carbazol -3-
yl)methanone  EG-018  
November 8, 2014  
130 Naphthalen -1-yl(1-pentyl-1H-pyrrol -3-
yl)methanone  JWH-030  
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 308 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
131 Naphthalen -1-yl(1-pentyl -5-phenyl -1H-
pyrrol -3-yl)methanone  JWH-145  
April 4, 2015  
132 N-（Naphthalen -1-yl)-1-pentyl -N-(1-pentyl -
1H-indole -3-carbonyl) -1H-indole -3-
carboxamide  BｉPＩCANA   
August 25, 201 4 
 
  WT/TPR/M/351/Add.1  
 
- 309 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
133 2-｛[Bis(4-
fluorophenyl)methyl]sulfinyl ｝acetamide  Bisfluoromodafinil   
March 19, 2016  
134 2-{[Bis(4-fluorophenyl)methyl]sulfinyl} -N-
methylacetamide  Modafiendz  
N-Methyl -4,4-difluoro -modafinil   
January 31, 2016  
135 4-Hydroxy -N-isopropyl -N-metyltrypt amine  4-OH-MIPT  
April 4, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 310 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
136 4-Hydroxy -N,N-diisopropyltryptamine  4-OH-DIPT   
April 1, 2007  
137 (1RS,3SR)-3-[2-Hydroxy -4-(2-methyloctan -
2-yl)phenyl]cyclohexan -1-ol CP-47,497   
November 20, 2009  
138 2-(Pｙrrolidin -1-yl)-1-(thiophen -2-yl)butan -1-
one α-PBT  
September 29, 2014  
NHNOH
 
  WT/TPR/M/351/Add.1  
 
- 311 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
139 2-(Pyrrolidin -1-yl)-1-(thiophen -2-yl)pentan -
1-one α-PVT  
May 30, 2013  
140 2-(Pyrrolidine -1-yl)-1-(5,6,7,8 -
tetrahydronaphtalen -2-yl)pentan -1-one TH-PVP  
December 25, 2015  
141 Isopropyl 2 -phenyl -2-(piperidin -2-yl)acetate  Isopropylphenidate   
December 5, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 312 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
142 Ethyl 2 -phenyl -2-(piperidin -2-yl)acetate  Ethylphenidate  
EP 
EPH  
January 16, 2013  
143 1-Phenyl -2-(piperidin -1-yl)butan -1-one α-PBP piperidine analog   
April 5, 2014  
144 N-(2-Phenylpropan -2-yl)-1-[(tetrahydro -2H-
pyran -4-yl)methyl] -1H-indazole -3-
carboxamide  CUMYL -THPINACA   
March 19, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 313 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
145 1-(1-Ｐhenylpentan -2-yl)pyrrolidine  Prolintane   
February 27, 2015  
146 N-（1-Phenethylpiperidin -4-yl）-N-phenylfuran -
2-carboxamide  Furanylfentanyl   
December 31, 2016  
147 1-Butyl-N-(2-phenylpropan -2-yl)-1H-indole -
3-carboxamide  CUMYL -BICA  
February 20, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 314 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
148 1-(4-Fluorophenyl) -2-
(isopropylamino)pentan -1-one 4F-IPV4-Fluoro -NPP  
January 5, 2015  
149 1-(4-Fluorophenyl)piperazine  4FPP  
November 20, 2009  
150 1-(4-Fluorop henyl) -2-(piperidin -1-yl)pentan -
1-one 4-Fluoro -α-PVP piperidine analog   
February 9, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 315 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
151 N-(4-Fluorophenyl) -N-[1-(2-
phenethyl)piperidin -4-yl]butanamide  4-FBF 
p-Fluorobutyrylfentanyl   
December 5, 2015  
152  1-(2-Fluorophenyl)propan -2-amine  2FMP  
2-Fluoroamphetamine  
2F-AMP  
January 5, 2015  
153 1-(3-Fluorophenyl)propan -2-amine  3FMP  
3-Fluoroamphetamine  
3F-AMP  
February 9, 2015  
154 1-(4-Fluorophenyl)propan -2-amine  4FMP  
p-Fluoroamphetamine   
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 316 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
155 [5-(2-Fluorophenyl) -1-pentyl -1H-pyrrol -3-
yl](naphthalen -1-yl)methanone  JWH-307  
May 30, 2013  
156 [5-(3-Fluorophenyl) -1-pentyl -1H-pyrrol -3-
yl](naphthalen -1-yl)methanone  JWH-368  
April 4, 2015  
157 1-(2-Fluorophenyl) -N-methylpropan -2-amine  N-Methyl -2-FMP 
2-FMA  
September 24, 2010  
 
  WT/TPR/M/351/Add.1  
 
- 317 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
158 1-(3-Fluorophenyl) -N-methylpropan -2-amine  3-Fluoromethamphetamine  
3-FMA  
July 28, 2013  
159 1-(4-Fluorophenyl) -N-methylpropan -2-amine  N-Methyl -4-FMP 
4-Fluoromethamphetamine   
January 16, 2009  
160 2-(3-Fluorophenyl) -3-methylmorpholine  3-Fluorophenmetrazine  
3-FPM  
December 5, 2015  
161 2-(4-Fluorophenyl) -3-methylmorpholine  4-Fluorophenmetrazine  
4-FPM  
March 19, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 318 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
162 N-(2-Fluorophenyl) -2-methoxy -N-(1-
phenethylpiperidin -4-yl)acetamide  Ocfentanil A-3217  
November 11, 2016  
163 ［1-(4-Fluorobenzyl) -1H-indol-3-yl］(2,2,3,3 -
tetramethylcyclopropyl)methanone  FUB-144  
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 319 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
164 [1-(4-Fluorobenzyl) -1H-indol-3-
yl](naphthalen -1-yl)methanone  FUB-JWH-018  
December 5, 2015  
165 1-(4-Fluorobenzyl) -N-(naphthalen -1-yl)-1H-
indole -3-carboxamide  FDU-NNE1   
July 4, 2 015 
166 N-(2-Fluorobenzyl) -2-(4-iodo-2,5-
dimethoxyphenyl)ethanamine  25I-NBF  
June 1, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 320 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
167 ［1-(5-Ｆluoropentyl) -1H-indazol -3-
yl］(naphthalen -1-yl)methanone  THJ-2201  
August 25, 2014  
168 [1-(5-Fluoropentyl) -1H-indol-3-yl](pyridin -3-
yl)methanone  5-Fluoropentyl -3-pyridinoylindole   
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 321 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
169  [1-(5-Fluoropentyl) -1H-indol-3-yl](2-
iodophenyl)methanone  AM694   
October 20, 2011  
170 1-(5-Fluoropentyl) -N-（naphthalen -1-yl）-1H-
indazole -3-carboxamide  5-Fluoro -MN-18 
5-Fluoro -NNE1indazole analog   
July 11, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 322 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
171 1-(5-Fluoropentyl) -N-(2-phenylpropan -2-yl)-
1H-indazole -3-carboxamide  CUMYL -5F-PINACA   
August 29, 2015  
172 1-(5-Fluoropentyl) -N-(2-phenylpropan -2-yl)-
1H-indole -3-carboxamide  CUMYL -5F-PICA  
August 29, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 323 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
173 1-(5-Fluoropentyl) -N-(2-pheny lpropan -2-yl)-
1H-pyrrolo[2,3 -b]pyridine -3-carboxamide  CUMYL -5F-P7AICA   
February 20, 2016  
174 ［1-(5-Ｆluoropentyl) -1H-benzo[d]imidazol -2-
yl］(naphthalen -1-yl)methanone  FUBIMINA  
AM2201 benzimidazole analog   
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 324 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
175 2-(4-Bromo -2,5-dimethoxypheny l)-N-(2-
fluorobenzyl)ethanamine  25B-NBF  
September 29, 2014  
176 2-(8-Bromo -2,3,6,7 -tetrahydrobenzo[1,2 -
b:4,5-b']difuran -4-yl)ethanamine  2C-B-FLY  
February 20, 2016  
177 1-(8-Bromobenzo[1,2 -b:4,5-b']difuran -4-
yl)propan -2-amine  Bromo -DragonFLY   
August 29 , 2015  
 
  WT/TPR/M/351/Add.1  
 
- 325 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
178 2-Benzylamino -1-(3,4-
methylenedioxyphenyl)propan -1-one BMDP   
November 16, 2012  
179 4-Benzylpiperidine     
February 27, 2015  
180 N-Benzyl -1-(5-fluoropentyl) -1H-indole -3-
carboxamide  5F-SDB-006  
April 4, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 326 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
181 N-Benzyl -1-pentyl -1H-indole -3-carboxamide  SDB-006  
September 29, 2014  
182 1-Benzyl -4-methylpiperazine  MBZP   
April 1, 2007  
183 1-(Benzofuran -2-yl)-N-ethylpropan -2-amine  2-EAPB  
February 9, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 327 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
184 1-(Benzofuran -5-yl)-N-ethylpropan -2-amine  5-EAPB  
January 5, 2015  
185 1-(Benzof uran-2-ly)propan -2-amine  2-APB  
February 27, 2015  
186 1-(Benzofuran -5-yl)propan -2-amine  5-APB  
September 26, 2015  
187 1-(Benzofuran -6-yl)propan -2-amine  6-APB  
January 16, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 328 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
188  1-(Benzofuran -2-yl)-N-methylpropan -2-
amine  2-MAPB   
August 25, 2014  
189 1-(Benzofuran -5-yl)-N-methylpropan -2-
amine  5-MAPB   
August 25, 2014  
190 1-Pentyl -N-(quinolin -8-yl)-1H-indazole -3-
carboxamide  THJ  
July 2, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 329 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
191 1-Pentyl -N-(2-phenylpropan -2-yl)-1H-
indazole -3-carboxamide  CUMYL -PINACA   
August 29, 2015  
192 1-Penty l-N-(2-phenylpropan -2-yl)-1H-indole -
3-carboxamide  CUMYL -PICA  
August 29, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 330 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
193 ［1-(1-Methylazepan -3-yl)-1H-indol-3-
yl］(naphthalen -1-yl)methanone  AM1220  azepan isomer   
August 25, 2014  
194 2-(Methylamino) -1-(3,4-
dimethylphenyl)propan -1-one 3,4-Dimethy lmethcathinone   
July 1, 2012  
195 2-Methylamino -1-(thiophen -2-yl)propane  MPA 
Methiopropamine  
Methylthienylpropamine  
N-Methyl -1-(thiophen -2-yl)propan -2-
amine   
May 30, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 331 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
196 2-[(Methylamino)methyl] -3,4-
dihydronaphthalen -1(2H)-one Mephtetramine   
Septem ber 26, 2015  
197 N-Methylindane -2-amine  N-methyl -2-AI  
April 5, 2014  
198 (E)-Methyl 2 -[(2S,3S,7aS,12bS)-3-ethyl-7a-
hydroxy -8-methoxy -1,2,3,4,6,7,7a,12b -
octahydroindolo[2,3 -a]quinolizin -2-yl]-3-
methoxyacrylate (including Mitragina Speciosa  
(Kratom))  7-Hydroxymitragynine 7a-Hydroxy -7H-
mitragynine   
March 19, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 332 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
199 (E)-Methyl 2 -[(2S,3S,12bS)-3-ethyl-8-
methoxy -1,2,3,4,6,7,12,12b -
octahydroindolo[2,3 -a]quinolizin -2-yl]-3-
methoxyacrylate  
(including Mitragina Speciosa  (Kratom))  Mitragynine   
March 19, 2016  
200 Methyl 2 -[1-(cyclohexylmethyl) -1H-indazole -
3-carboxamide] -3,3-dimethylbutanoate  MDMB -CHMINACA   
January 5, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 333 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
201 Methyl 2 -[1-(cyclohexylmethyl) -1H-indazole -
3-carboxamide] -3-methylbutanoate  MA-CHMINACA   
January 5, 2015  
202 Methyl 2 -[1-(cyclohexylm ethyl) -1H-indole -3-
carboxamide] -3,3-dimethylbutanoate  MDMB -CHMICA  
MMB-CHMINACA   
February 9, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 334 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
203 Methyl  2-[1-(cyclohexylmethyl) -1H-indole -3-
carboxamido] -3-methylbutanoate  AMB-CHMICA   
December 31, 2016  
204 N-Methyl -1-(naphthalen -2-yl)propan -2-amine  Methamnetamine   
September 26, 2015  
205 (4-Methylpiperazin -1-yl)(1-pentyl -1H-indol-
3-yl)methanone  MEPIRAPIM   
November 8, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 335 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
206 {1-[(1-Methylpiperidin -2-yl)methyl] -1H-
indol-3-yl} (naphthalen -1-yl)methanone  AM1220   
July 1, 2012  
207 Methyl 2 -(4-methy lphenyl) -2-(piperidin -2-
yl)acetate  4-Methylmethylphenidate   
July 2, 2016  
208 1-(4-Methylphenyl)propan -2-amine  4-Methylamphetamine   
November 16, 2012  
 
  WT/TPR/M/351/Add.1  
 
- 336 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
209 2-(2-Methylphenyl) -1-(1-pentyl -1H-indol-3-
yl)ethan -1-one JWH-251  
May 14, 2011  
210 1-［（3-Methylp henyl）methyｌ］piperazine  1-（3-Methylbenzyl)piperazine   
July 11, 2014  
211 Methyl  1-phenethyl -4-（N-
phenylpropanamido)piperidin -4-carboxylate  Carfentanil  
Carfentanyl  
4-Carbomethoxyfentanyl   
December 31, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 337 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
212 Methyl 2 -[1-(4-fluorobenzyl) -1H-indazole -3-
carboxamido] -3,3-dimethylbutanoate  MDMB -FUBINACA  
FUB-ADB  
February 27, 2015  
213 Methyl 2 -[1-(4-fluorobenzyl) -1H-indazole -3-
carboxamido] -3-methylbutanoate  FUB-AMB 
AMB-FUBINACA  
MMB-FUBINACA   
November 8, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 338 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
214 Methyl 2 -[1-(4-fluorobenzyl) -1H-indole -3-
carboxamido] -3.3-dimethylbutanoate  MDMB -FUBICA   
July 2, 2016  
215 Methyl 2 -［1-(5-fluoropentyl) -1H-indazole -3-
carboxamide ］-3,3-dimethylbutanoate  5F-ADB 
5F-MDMB -PINACA  
MDMB2201 indazole analog   
November 8, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 339 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
216 Methyl 2 -[1-(5-fluoropentyl) -1H-indazole -3-
carboxamide] -3-methylbutanoate  5F-AMB  
July 25, 2014  
217 Methyl 2 -［1-(5-fluoropentyl) -1H-indole -3-
carboxamido ］-3-methylbutanoate  MMB2201  
5-Fluoro -AMB indole analog   
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 340 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
218 3-Methyl -2-(4-methylphenyl)morpholine  Mephenmetrazine   
December 5, 2015  
219 Methyl 3 -methyl -2-(1-pentyl -1H-indazole -3-
carboxamido)butanoate  AMB  
November 8, 2014  
220 N-Methyl -4-(3,4-
methylenedioxyphenyl)butan -2-amine  HMDMA   
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 341 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
221 5,6-Methylendioxyindan -2-amine  MDAI   
May 30, 2013  
222 1-(3,4-Methylenedioxyphenyl)butan -2-amine  BDB  
April 1, 2007  
223 1-(3,4-Methylenedioxybenzyl)piperazine  MDBP   
January 11, 2008  
224 1-(5-Methoxy -1H-indol-3-yl)propan -2-amine  5-MeO-AMT  
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 342 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
225 (Z)-N-[3-(2-methoxyethyl) -4,5-
dimethylthiazol -2(3H)-ylidene]-2,2,3,3 -
tetramethylcyclopropanecarboxamide  A-836339   
April 5, 2014  
226 5-Methoxy -N,N-dipropyltryptamine  5-MeO-DPT  
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 343 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
227 1-Methoxy -3,3-dimethyl -1-oxobutan -2-yl 1 -
(cyclohexylmethyl) -1H-indazole -3-
carboxylate  MO-CHMINACA   
January 31, 201 6 
228 5-Methoxy -N,N-dimethyltryptamine  5-MeO-DMT  
April 1, 2007  
229 1-[1-(3-Methoxyphenyl)cyclohexyl]piperidine  3-MeO-PCP  
August 25, 2014  
 
  WT/TPR/M/351/Add.1  
 
- 344 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
230 1-[1-(4-Methoxyphenyl)cyclohexyl]piperidine  4-MeO-PCP  
September 29, 2014  
231 4-[1-(3-
Methoxyphenyl)cycloh exyl]morpholine  3-MeO-PCMo   
December 25, 2015  
232 1-(4-Methoxyphenyl)piperazine  4MPP  
4-MeOPP   
April 1, 2007  
 
  WT/TPR/M/351/Add.1  
 
- 345 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
233 1-［1-(2-Methoxｙphenyl) -2-
phenylethyl ］piperidine  2-MeO-diphenidine Methoxphenidine     
September 29, 2014  
234 2-(2-Methoxyphenyl) -1-(1-penty l-1H-indol-3-
yl)ethanone  JWH-250  
September 24, 2010  
235 (2-Methoxyphenyl)(1 -pentyl -1H-indol-3-
yl)methanone  RCS-4 ortho isomer   
November 16, 2012  
 
  WT/TPR/M/351/Add.1  
 
- 346 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
236 (4-Methoxyphenyl)(1 -pentyl -1H-indol-3-
yl)methanone  RCS-4  
October 20, 2011  
237 2-(3-Methoxyphenyl) -2-
(methylamino)cyclohexanone  Methoxmetamine  
MMXE   
February 20, 2016  
 
  WT/TPR/M/351/Add.1  
 
- 347 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
238 2-(2-Methoxyphenyl) -1-｛1-［(1-
methylpiperidin -2-yl)methyl ］-1H- indol-3-
yl｝ethanone  Cannabipiperidiethanone   
July 1, 2012  
239 3-[2-(2-
Methoxybenzylamino)ethyl]quinazoline -
2,4(1 H,3H)-dione RH-34  
June 1, 2015  
240 N-(2-Methoxybenzyl) -2-(2,5-dimethoxy -4-
metylphenyl)ethanamine  25D-NBOMe   
April 4, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 348 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
241 3-Methoxy -2-(methylamino) -1-(4-
methylphenyl)propan -1-one Mexedrone   
September 3, 2016  
242 5-Methoxy -2-methyl -N,N-dimethyltryptamin e 5-MeO-2-TMT  
June 1, 2015  
243 1-(2-Methoxy -4,5-
methylenedioxyphenyl)propan -2-amine  MMDA -2  
April 1, 2007  
244 1-(2-Methoxy -4,5-methylenedioxyphenyl) -2-
(methylamino)propan -1-one 2-Methoxy -4,5-methylenedioxy 
methcathinone   
April 4, 2015  
 
  WT/TPR/M/351/Add.1  
 
- 349 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
245 [1-(2-Morpholinoethyl) -1H-indol-3-
yl](naphthalen -1-yl)methanone  JWH-200  
May 14, 2011  
246 5-Iodoindan -2-amine  5-IAI  
January 16, 2013  
247 1-(4-Iodo-2,5-dimethoxyphenyl)propan -2-
amine  DOI  
January 11, 2008  
 
  WT/TPR/M/351/Add.1  
 
- 350 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
248 2-(4-Iodo-2,5-dimethoxyphenyl) -N-(3,4-
methylendioxy benzyl)ethanamine  25I-NB34MD   
July 4, 2015  
249 (2-Iodo-5-nitrophenyl){1 -[(1-
methylpiperidin -2-yl)methyl] -1H-indol-3-
yl}methanone  AM1241   
May 30, 2013  
250 (2-Iodophenyl)(1 -pentyl -1H-indol-3-
yl)methanone  AM679   
November 16, 2012  
 
  WT/TPR/M/351/Add.1  
 
- 351 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
251 （2-Iodophenyl) ［1-(1-methylazepan -3-yl)-1H-
indol-3-yl］methanone  AM2233  azepan isomer   
August 25, 2014  
252 (2-Iodophenyl){1 -[(1-methylpiperidin -2-
yl)methyl] -1H-indol-3-yl}methanone  AM2233   
July 1, 2012  
 
  WT/TPR/M/351/Add.1  
 
- 352 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
253  
 
 
 
 
Synthetic cannabinoid derivatives  
（Total 393 substances ） 
 
 
※For details, please refer to the attached 
sheet.  JWH-019 
JWH-022 
JWH-072 
JWH-081 
JWH-120 
JWH-182 
JWH-210 
JWH-398 
AM2232  
etc.  
 
 
 
 
 March 22, 2013  
254  
 
Synthetic cannabinoid derivatives  
(Total 377 substances)  
 
 
※For details, please refer to the attach ed 
sheet.  JWH-007 
JWH-015 
JWH-213 
etc.  
 
 
 
 
 
 March 22, 2013  
 
  WT/TPR/M/351/Add.1  
 
- 353 - List of "Designated Substances" in Japan (as of December 31. 2016)  
Drug category, "Designated Substances (*)" wa s newly established in 2007 to control new psychoactive substances (NPS).  
Their manufacture, import, sale, display, possession, use etc. are generally prohibited except for scietific purposes.  
A total 2356 substances including 2 plants ( Salvia Divinorum  and Mitragina Speciosa  (Kratom)) are currently controlled as "Designated Substances". 
(Substances basis 252, Generic scheduling: 2104.)  
26 substances, such as JWH -018, mephedrone, MDPV etc. have been already reclassified to be "Narcotics".  
(*)They are contr olled by "The Law on Securing Quality, Efficacy and Safety of Products including Pharmaceuticals and Medical Devices".  
255  
 
 
Synthetic cathinone derivatives  
(Total 1334 substances)  
 
 
※For details, please refer to the attached 
sheet.  N-Ethylbuphedrone  
4-Methylethcathinone(4 -MEC) 
bk-MDDMA  
α-PBP 
3-MMC 
3-FMC 
4-FMC 
α-POP 
α-PNP 
α-PHP 
α-PHPP 
4-Fluolo -α-POP 
4-F-PV8 
4F-Octedrone  
MPHP  
MDPH  
4-MeO-α-POP 
4-MeO-PV8 
NEB 
etc.  
 
 
 
 
  January 12, 2014  
 and 
May 11, 2015  
 
Any substance which contains any of the substances listed above. However, plants other than  Salvia Di vinorum  and Mitragina Speciosa  (Only the form can be used for 
human body immediately.) are excluded.  
 
  WT/TPR/M/351/Add.1  
 
- 354 -  Details of Generic Scheduling        
No. Basic Structure  Displaceable 
Substituents  Examples of 
Substances  Note  Date of 
Enforcement  
253  
 
 
 
 
 
 
 
 
 
 
 
 
 
（1H-indol-3-yl）（naphthalen -1-yl）methanone 
 
 
【Synthetic cannabinoid derivatives. Total 393 substances are controlled by 
this definition. 】 
 
 (１)１ n-C3H7, n-
C4H9, n-C5H11,n-
C6H13, n-C7H15, n-
C8H17 
 
２ -
CH=CHCH 2CH2CH3
, 
-
CH2CH=CHCH 2C
H3,  
-
CH2CH2CH=CHC
H3, 
  -
CH2CH2CH2CH=CH
2 
 
３ -(n-C3H6)X, -(n-
C4H8)X,-(n-
C5H10)X 
  [ X = F, Cl, Br, I, 
CN, OH, OCOCH 3 ] 
 
(２)１ -CH3, -
C2H5, n -C3H7, n -
C4H9,  
    n-C5H11, n -
C6H13  
  ２ -OCH3, -
OC2H5  
  ３ -F 
  ４ -Cl 
  ５ -Br 
  ６ -I 
  ７ -H JWH-019 
JWH-022 
JWH-072 
JWH-081 
JWH-120 
JWH-182 
JWH-210 
JWH-398 
AM2232  
etc. Following substances are 
Narcotics.  
1-Naphthalenyl （1-pentyl -1H-
indol-3-yl)methanone  
  
（1-Butyl-1H-indol-3-
yl)(naphthalen -1-ｙｌ)methanone  
 
（4-Methylnaphthalen -1-yl）（1-
pentyl -1H-indol-3-
yl）methanone  
 
［1-(5-Fluoropentyl ）-1H-indol-3-
yl］（naphthalen -1-yl)methanone  
 
［1-(5-Fluoropentyl ）-1H-indol-3-
yl］（4-methylnaphthalen -1-
yl）methanone  
 
Following substances are 
excluded from Designated 
Substances.  
（4-Ethoxynaphthalen -1-yl）（1-
octyl-1Ｈ-indol-3-yl）methanone  
 
（1-Octyl-1Ｈ-indol-3-yl）（4-
pentylnaphth alen-1-
yl）methanone  
 
（4-Hexylnaphthalen -1-yl）（1-
octyl-1Ｈ-indol-3-yl）methanone  
 
（1-Heptyl -1Ｈ-indol-3-yl）（4-
hexylnaphthalen -1-
yl）methanone  
 
（4-Methoxynaphthalen -1-yl）（1-
octyl-1Ｈ-indol-3-yl）methanone  March 22, 2013  
(２) (１
) 
 
  WT/TPR/M/351/Add.1  
 
- 355 -  Details of Generic Scheduling        
No. Basic Structure  Displaceable 
Substituents  Examples of 
Substances  Note  Date of 
Enforcement  
254  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
（2-Methyl -1H-indol-3-yl）（naphthalen -1-yl）methanone 
 
 
 
 
 
(Synthetic cannabinoid derivatives. Total 377 
substances are controlled by this definition. ) 
 (１)１ n-C3H7, n-
C4H9, n-C5H11, n-
C6H13, n-C7H15 
(The substituents 
on (１) is limited to 
n-C3H7 or n-C4H9 
in case where the  
substituents on 
(２) is n-C6H13.） 
 
 ２ n-C8H17 
（Limited to case 
the substituents 
on (２) is -C2H5 or 
n-C3H7） 
 
  ３ -
CH=CHCH 2CH2CH3
,  
 -
CH2CH=CHCH 2CH3
, 
    -
CH2CH2CH=CHCH 3
, 
    -
CH2CH2CH2CH=CH
2 
（Limited to case 
the substituents 
on (２) is hydrogen 
or the substu ents 
except n-C6H13. ） 
 
  ４-(n-C3H6)X, -
(n-C4H8)X, -(n-
C5H10)X 
  [ X = F, Cl, Br, I, 
CN, OH, OCOCH 3 ] 
（The substituents 
on (１) is limited to 
(n-C3H6)X or ( n-
C4H8)X in case 
where the 
substituents on 
(２) is n-C6H13. ） 
 
(２)１ -CH3, -
C2H5, n -C3H7, n -
C4H9,  
 n-C5H11, n -
C6H13  
 ２ -OCH3, -
OC2H5  JWH-007 
JWH-015 
JWH-213 
etc. Following substance is 
excluded from Designated 
Substances.  
 
(2-Methyl -1-heptyl -1Ｈ-indol-3-
yl) (4-pentylnaphthalen -1-yl) 
methanone  March 22, 2013  
(２) (１) 
 
  WT/TPR/M/351/Add.1  
 
- 356 -  Details of Generic Scheduling        
No. Basic Structure  Displaceable 
Substituents  Examples of 
Substances  Note  Date of 
Enforcement  
255  
 
 
 
 
 
 
 
 
 
 
2-Amino -1-phenyl -propan -1-one 
 
 
 
【Synthetic cathinone derivatives. Total 1334 
substances are controlled by this definition. 】 
  
(１)１ -NHCH３ 
 ２ -NHC２H５ 
 ３ -N（CH３）２ 
 ４ -N（CH３）（C２H５） 
 ５ -N（C２H５）２ 
 ６ 1-pyrrolidinyl  
 ７ -NH２ 
 
(２)１ -CH３ 
  ２ -C２H５ 
 ３ -H  
４ -n-C３H７ 
 ５ -n-C４H９ 
 ６ -n-C５H１１ 
７ -n-C６H１３ 
 ８ -n-C７H１５ 
 
 
(３)１ -CH３ 
 ２ -C２H５ 
 ３ -OCH３ 
 ４ Methylenedioxy  
 ５ -F 
 ６ -Cl 
 ７ -Br 
 ８ -I 
 ９ -H 
 N-
Ethylbuphedron
e 
4-
Methylethcathin
one(4 -MEC) 
bk-MDDMA  
α-PBP 
3-MMC 
3-FMC 
4-FMC 
4-CMC 
α-POP 
α-PNP 
α-PHP 
α-PHPP 
4-Fluolo -α-POP 
4-F-PV8 
4F-Octedrone  
MPHP  
MDPH  
4-MeO-α-POP 
4-MeO-PV8 
NEB 
etc. Following substances are 
Narcotics.  
2-Aminopropiophenone  
 
2-Ethylamino -1-phenylpropan -
1-one 
 
1-Phenyl -2-(pyrrolidin -1-
yl)pentan -1-one 
 
2-Methylamino -1-
phenylpropan -1-one 
 
2-(Methylamino) -1-(4-
methylphenyl)propan -1-one 
 
2-Methylamino -1-(3,4-
methylendioxyphenyl)propan -
1-one 
 
1-(3,4-Methylendioxyphenyl) -
2-(pyrrolidin -1-yl)pentan -1-one 
 
2-Ethylamino -1-(3,4-
methylendioxyphenyl)propan -
1-one 
 
Following substances are 
Psychotropics.  
2-(Diethylamino)pr opiophenone  
 
1-(4-Tolyl) -2-(1-pyrrolidinyl) -1-
pentanone  
  January 12. 
2014 
 and 
May 11. 2015  
__________  (１
) 
(２) (3)