G/STR/N/16/JPN  
 
5 July 2016  
(16-3600)  Page: 1/18  
Working Party on State Trading Enterprises  Original: English  
 
 STATE TRADING 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII 
JAPAN 
The following communication, dated 28 June 2016, is being circulated at the request of the 
Delegation of Japan. 
 
_______________ 
 
 
1  LEAF TOBACCO 
I. ENUMERATION OF STATE TRADING ENTERPRISES 
A. Identification of State Trading Enterprises 
Japan Tobacco Inc. (JT). 
 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description) 
 Leaf tobacco (HS No. 2401.10, 2401.20, 2401.30, 2403.91). 
 
II. REASON AND PURPOSE 
A. Reason of Purpose for Establishing and/or Maintaining State Trading Enterprise 
The tobacco production is monopolized by JT for promoting sound development of the tobacco 
industry under the provisions of the Tobacco Bu siness Law. Although private traders can import 
leaf tobacco, this monopoly in effect renders all the importation of leaf tobacco for the 
manufacture of tobacco in Japan dependent upon subsequent purchase by JT. 
 
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
Including Legal Provisions and Summary of Statutory or Constitutional Powers 
The monopoly of production of manufactured toba cco is stipulated in Article 8 of the Tobacco 
Business Law.   
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise 
JT is engaged predominantly in the manufacture and sales of tobacco products. JT is also 
diversifying its business activities into pharmaceuticals, food and real estate.  
 G/STR/N/16/JPN 
 
- 2 - 
 
  B. Specification of Exclusive or Special Righ ts or Privileges Enjoyed by the State Trading 
Enterprise 
The importation of leaf tobacco and manufactured tobacco has been liberalized since 1 April 1985. 
However, as a consequence of the continuing monopoly of manufacturing tobacco by the Japan 
Tobacco Inc. (JT), the importation of leaf tobacco for the manufacture of tobacco in Japan is in 
effect dependent upon the purchase by JT. 
C. Type of Entities other than the State Trad ing Enterprise that are Allowed to Engage in 
Importation/Exportation and Conditions for Participation 
Any entity can engage in importation without any allowance.  D. How Import/Export Levels are Established by the State Trading Enterprise JT imports leaf tobacco on the basis of commercial consideration taking into account supply and 
demand situations of manufactured tobacco, as well as quality, market price and other relevant 
characteristics of leaf tobacco. 
E. How Export Prices are Determined 
JT exports leaf tobacco on the basis of commercial consideration. 
F. How the Resale Prices of Imported Products are Determined JT does not resell imported leaf tobacco. 
G. Whether Long-Term Contracts are Negotiated by the State Trading Enterprise. Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered Into by the Government 
No long-term contracts are negotiated by JT. 
H. Brief Description of Market Structure 
JT is obligated to acquire all the leaf tobacco produced by domestic tobacco cultivators who enter 
into contracted purchase agreements with JT.  
 
IV. STATISTICAL INFORMATION  
(See attached Tables I – III on Tobacco).  
  G/STR/N/16/JPN  
 
- 3 - TABLE I 
STATE TRADING: JAPAN TOBACCO INC. 
STATISTICAL INFORMATION, IMPORTS 
Description of product 
(including HS numbers)  Fiscal year Total quantity 
imported 
(tons) Quantity imported 
by state trading 
enterprise 
(tons) Average import 
price 
(¥/kg.) Average 
representative 
domestic sales 
price (¥/kg.) Mark-up 
(¥/kg.) National production 
(tons) 
Leaf tobacco HS No. 2401.10, 2401.20, 2401.30, 2403.91 2013 64,861 64,861 647 - - 19,844 
2014 58,639 58,639 713 - - 19,980 
2015 59,118 59,118 821 - - 18,687 
Source : Ministry of Finance "Japan's Trade Statistics" – JT Data.  
TABLE II 
STATE TRADING: JAPAN TOBACCO INC. 
STATISTICAL INFORMATION, EXPORTS 
Description of product 
(including HS numbers)  Fiscal year Total quantity 
exported 
(tons) Quantity exported by 
state trading 
enterprise 
(tons) Average 
procurement 
price 
(¥/kg.) Average 
representative 
domestic sales 
price (¥/kg.) Average export 
price 
(¥/kg.) National production 
(tons) 
Leaf tobacco HS No. 2401.10, 2401.20, 2401.30, 2403.91 2013 6,753 6,753 - - 91 19,844 
2014 6,829 6,829 - - 22 19,980 
2015 6,135 6,135 - - 37 18,687 
Source : Ministry of Finance "Japan's  Trade Statistics" – JT Data.  
  G/STR/N/16/JPN  
 
- 4 - TABLE III 
STATE TRADING: JAPAN TOBACCO INC. 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
Description of product 
(including HS numbers) Fiscal Year Domestic purchases by 
state trading enterprise 
(tons) National production 
(tons) Domestic sales by state 
trading enterprise 
(tons) National consumption 
(tons) 
Leaf tobacco HS No. 2401.10, 2401.20, 2401.30, 2403.91 2013 19,844 19,844 - 73,432 
2014 19,980 19,980 - 66,578 
2015 18,687 18,687 - 67,531 
Source : JT Data. G/STR/N/16/JPN 
 
- 5 - 
 
  2  OPIUM 
I. ENUMERATION OF STATE TRADING ENTERPRISES A. Identification of State Trading Enterprises The Government of Japan (Ministry of Health, Labour and Welfare). 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description) 
Opium (HS No. 13.02.11).  
II. REASON AND PURPOSE 
A. Reason of Purpose for Establishing and/or Maintaining State Trading Enterprise The purpose for maintaining the state trading enterpri se is to achieve the rational supply of opium 
for medical and scientific purposes, as well as to conduct necessary control over the cultivation of 
opium poppy, and the transfer, receipt and possession and other relevant activities concerning 
opium and poppy straw.  
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
including Legal Provisions and Summary of Statutory or Constitutional Powers 
Under the provisions of the Opium Law, only the Ministry of Health, Labour and Welfare is 
authorized as a state trading entity, which can conduct import and export of opium, purchase 
opium from the opium poppy cultivators and from research cultivators, and sell opium to narcotics 
manufacturers and narcotics research institution.  
The monopoly of import and export opium is stipulated in Article 2 of the Opium Law, but the 
Ministry of Health, Labour and Welfare does not export opium.  
The above mentioned regulations are based on the provision of the Single Convention of Narcotic 
Drugs, 1961.  
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise 
The Ministry of Health, Labour and Welfare, as a state trading entity, imports opium from India.  
The Ministry of Health, Labour and Welfare dete rmines the quantity of opium which is to be 
imported to Japan, on the basis of factors such as demand for opium in Japan and supply of opium 
in exporting country.  
B. Specification of Exclusive or Special Righ ts or Privileges Enjoyed by the State Trading 
Enterprise 
The rights to import and to export opium belong exclusively to the Ministry of Health, Labour and 
Welfare.  
The Ministry of Health, Labour and Welfare purc hases all the opium which opium poppy cultivators 
or research cultivators have gathered.  
The Ministry of Health, Labour and Welfare determ ines the price for purchase of the opium from 
opium poppy cultivators, after consulting with the Mi nistry of Finance, on the basis of factors such 
as the condition of production by opium poppy cultivators, import price of opium and other 
economic conditions.  G/STR/N/16/JPN 
 
- 6 - 
 
  C. Type of Entities other than the State Trad ing Enterprise that are allowed to Engage in 
Importation/Exportation and Conditions for Participation 
There are no entities allowed to engage in import  and export other than the Ministry of Health, 
Labour and Welfare.  
D. How Import/Export Levels are established by the State Trading Enterprise 
The Ministry of Health, Labour and Welfare dete rmines the quantity of opium which is to be 
imported to Japan on the basis of factors such as demand for opium in Japan and supply of opium 
in exporting country.  
E. How Export Prices are determined The Ministry of Health, Labour and Welfare does not export opium. F. How the Resale Prices of Imported Products are determined 
The Ministry of Health, Labour and Welfare determin es the resale price on the basis of factors such 
as import price and other expenses.  
G. Whether Long-Term Contracts are negotiated by the State Trading Enterprise. Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered into by the 
Government 
No long-term contracts are negotiated by the Ministry of Health, Labour and Welfare.  
H. Brief Description of Market Structure 
The Ministry of Health, Labour and Welfare impo rts opium and purchases all the opium gathered 
by opium poppy cultivators or research cultivators. The Ministry of Health, Labour and Welfare sells opium to narcotics manufacturers and proprietors of narcotics research institution.  
IV. STATISTICAL INFORMATION  
(See attached Tables I – II on Opium).  V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE (AS APPROPRIATE) 
All imported opium is used for medical and scientific purposes.  
All of the amount is for domestic consumption, not for export.  
  G/STR/N/16/JPN  
 
- 7 - TABLE I 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
STATISTICAL INFORMATION, IMPORTS 
Description of 
product Total quantity 
imported 
(kg.) Quantity imported 
by state trading 
enterprise 
(kg.) Average import price  
(¥/kg.) Average 
representative domestic price 
(¥/kg.) Mark-up National production 
(kg.) 
Opium (HS 13.02.11) 95,340 
(J.F.Y. 2013) 95,340 
(J.F.Y. 2013) 9,310 25,437 - 1.1 
(J.F.Y. 2013) 
77,940 
(J.F.Y. 2014) 77,940 
(J.F.Y. 2014) 11,469 25,574 - 0.6 
(J.F.Y. 2014) 
78,600 
(J.F.Y. 2015) 78,600 
(J.F.Y. 2015) 11,008 25,376 - 1.1 
(J.F.Y. 2015) 
Japan Fiscal Year (J.F.Y.) is from April to March. 
TABLE II 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
STATISTICAL INFORMATION, EXPORTS 
Description of product Total quantity 
exported 
(kg.) Quantity exported by 
state trading 
enterprise Average 
procurement 
price Average 
representative 
domestic sales price Average 
export price National production 
Opium 
(HS 13.02.11) 0 
(J.F.Y. 2013) - - - - 1.1 
(J.F.Y. 2013) 
0 
(J.F.Y. 2014) - - - - 0.6 
(J.F.Y. 2014) 
0 
(J.F.Y. 2015) - - - - 1.1 
(J.F.Y. 2015) 
Japan Fiscal Year (J.F.Y.) is from April to March. G/STR/N/16/JPN 
 
- 8 - 
 
  3  RICE, WHEAT AND BARLEY 
I. ENUMERATION OF STATE TRADING ENTERPRISES A. Identification of State Trading Enterprises The Government of Japan. The Ministry of Agricult ure, Forestry & Fisheries (hereinafter referred to 
as "MAFF"). 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description) 
Rice and its worked and/or prepared products (hereinafter referred to as "rice"). 
Wheat, meslin, triticale and their processed products (hereinafter referred to as "wheat"). Barley and its processed products (hereinafter referred to as "barley"). (As for the tariff item 
numbers of specific products, see attached).  
II. REASON AND PURPOSE 
A. Reason of Purpose for Establishing and/or Maintaining State Trading Enterprise  
MAFF is authorized to take measures to stabilize supply and demand situations as well as prices for 
such staple foods as rice, wheat and barley, for promoting stability of national life and economy, 
according to the Law for Stabilization of Supply-Demand and Price of Staple Food.  
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
Including Legal Provisions and Summary of Statutory or Constitutional Powers 
MAFF can import rice, wheat and barley, and can export rice when particular necessity exist, based 
on the Law for Stabilization of Supply-Demand and Price of Staple Food.  
Legal provisions – Articles 30, 31, 32, 42, 43 and 44 of the Law for Stabilization of Supply-Demand 
and Price of Staple Food.  
This law does not restrict the exportation of rice, wheat and barley by the private sectors. 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise 
MAFF mainly conducts the import of rice under the minimum access opportunities and wheat and 
barley under the current access opportunities, based on the Schedule XXXVIII-JAPAN in the WTO Agreement. 
MAFF is not involved, in the marketing or distribution of over-quota imports of rice, wheat and 
barley, except for the collection of a part of over-quota tariffs of such imports.  
B. Specification of Exclusive or Special Righ ts or Privileges Enjoyed by the State Trading 
Enterprise 
MAFF can import rice, wheat and barley, and can export rice when particular necessity exists, 
based on the Law for Stabilization of Supply-Demand and Price of Staple Food.  
MAFF collects mark-ups on imported rice, wheat and barley which are bound in the 
Schedule XXXVIII-JAPAN in the WTO Agreement. 
This law does not restrict the exportation of rice, wheat and barley by the private sectors. G/STR/N/16/JPN 
 
- 9 - 
 
  C. Type of Entities other than the State Trad ing Enterprise that are allowed to Engage in 
Importation/Exportation and Conditions for Participation 
Private traders can freely import rice, wheat and barley subject to over-quota tariffs established in 
the Schedule XXXVIII-JAPAN in the WTO Agreement. 
Private traders can freely export rice, wheat and barley. 
D. How Import/Export Levels are established by the State Trading Enterprise MAFF imports rice under the minimum access opportunities and wheat and barley under the 
current access opportunities, both of which are established in the Schedule XXXVIII-JAPAN in the 
WTO Agreement.  MAFF sells rice destined for food aid pursuant to the Government's decision. The quantity for food 
aid is determined, taking account of requests from recipient countries, relevant international rules 
on food aid etc. 
E. How Export Prices are determined 
MAFF conducts no commercial export of rice, wheat and barley.  
F. How the Resale Prices of Imported Products are determined The sales prices for imported rice, wheat and barley are determined on the basis of such factors as 
import prices, management costs and other economic conditions. 
 The sales prices for imported rice, wheat and barley  are not to be above the sum of the respective 
purchase prices and the respective mark-ups bound in the WTO Agreement. 
 
Mark-ups on imported rice, wheat and barley are used for their management costs such as storage, buying and selling costs and so on.  
G. Whether Long-Term Contracts are negotiated by the State Trading Enterprise. Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered into by the Government 
MAFF has no long-term contracts on the import and export of rice, wheat and barley. 
H. Brief Description of Market Structure  
Private marketing whose prices are freely decided is predominant in the Japanese rice market, and 
the government purchase from domestic market is  limited only to the minimum amount necessary 
for official stockpile under the Law for Stabilization of Supply-Demand and Price of Staple Food.  
 Most of wheat and barley consumed in Japan are imported.  
IV. STATISTICAL INFORMATION  
(See attached Tables I – III). V. REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE  
None.  
VI. ADDITIONAL INFORMATION None. 
  G/STR/N/16/JPN  
 
- 10 - TABLE I 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES 
STATISTICAL INFORMATION, IMPORTS 
(Unit: 1,000 tons (Mark-up: Yen/kg)) 
Description of 
product(s) 
(including 
HS number(s)) Total quantity 
imported Quantity imported by 
state trading 
enterprise Average import 
price Average 
representative 
domestic sales price  Mark-up National production 
1 2 3 4 5 6 7 
Rice 2013FY 644 2013FY 642 - - - - 2013FY 193 2013FY 8,718 
2014FY 659 2014FY 658 - - - - 2014FY 95 2014FY 8,628*1 
2015FY 668 2015FY 667 - - - - 2015FY n.a. 2015FY n.a. 
Wheat 2013FY 5,637 2013FY 5,631 - - - - 2013FY 17 2013FY 812 
2014FY 5,860 2014FY 5,854 - - - - 2014FY 17 2014FY 852 
2015FY 5,483 2015FY 5,478 - - - - 2015FY n.a. 2015FY 1,004 
Barley 2013FY 1,303 2013FY 1,302 - - - - 2013FY 8 2013FY 183 
2014FY 1,192 2014FY 1,190 - - - - 2014FY 8 2014FY 170 
2015FY 1,122 2015FY 975 - - - - 2015FY n.a. 2015FY 177 
Note: 1. As for the HS numbers, see attached. 
 2. The figures of columns 6 and 7 of rice in 2013FY are not yet available.  3. The figure with *1 in column 7 is tentative data.  4. Data source: Ministry of Finance "Japan's Trade Statistics".   Ministry of Agriculture, Forestry and Fi sheries "Food Balance Sheet" and related data. 
  
  G/STR/N/16/JPN  
 
- 11 - TABLE II 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES 
STATISTICAL INFORMATION, EXPORTS 
(Unit: 1,000 tons, Yen/ton) 
Description of 
product(s) 
(including 
HS number(s)) Total quantity 
exported Quantity exported 
by state trading 
enterprise Average 
procurement price Average 
representative 
domestic sales price Average export 
price National production 
1 2 3 4 5 6 7 
Rice 2013FY 87 2013FY 84 2013FY 96,903 2013FY 270,102 -  - 2013FY 8,718 
2014FY 84 2014FY 79 2014FY 119,407 2014FY 188,652 -  - 2014FY 8,628*1 
2015FY 98 2015FY 90 2015FY 114,407 2015FY  n.a. - - 2015FY n.a. 
Note:  1.  As for the HS numbers, see attached.  
 2.  The quantity in columns 3 is for food aid.   3.  The figures of columns 5 and 7 in 2013FY are not yet available.   4. The figures with *1 in column 7 is tentative data. 
 5.  Data source: Ministry of Ag riculture, Forestry and Fisheries "F ood Balance Sheet" and related data. 
   
  G/STR/N/16/JPN  
 
- 12 - TABLE III 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
(Unit: 1,000 tons) 
Description of product(s) 
(including HS number(s)) Domestic purchases by 
state trading enterprise National production Domestic sales by state 
trading enterprise National consumption 
1 2 3 4 5 
Rice 2013FY3 183  2013FY 8,718  2013FY 731  2013FY 8,697  
2014FY3 250  2014FY 8,628*1  2014FY 957  2014FY 8,792*1  
2015FY3  250 2015FY  n.a. 2015FY n.a. 2015FY  n.a. 
Wheat 2013FY 0  2013FY 812 2013FY 5,315 2013FY 6,992 
2014FY 0  2014FY 852 2014FY 5,613 2014FY 6,579*1 
2015FY 0 2015FY 1,004 2015FY n.a. 2015FY  n.a. 
Barley 2013FY 0  2013FY 183 2013FY 1,272 2013FY 2,080 
2014FY 0  2014FY 170 2014FY 1,197 2014FY 1,953*1 
2015FY 0 2015FY 176 2015FY n.a. 2015FY  n.a. 
 
Note: 1. As for the HS numbers, see attached.  
 2. The figures of columns 3 of rice, 4 and 5 in 2013FY are not yet available.   3. The figures with *1 in columns 3 and 5 are tentative data.   4. The figures of columns 2 of rice are th e quantity of rice of successful bids in  tenders which MAFF conducted to purchase fr om the respective year's crop.  
 5. Data source: Ministry of Agri culture, Forestry and Fisheries "Food  Balance Sheet" and related data. 
 G/STR/N/16/JPN 
 
- 13 - 
 
  1. Rice and its worked and/or prepared products 
 
1006.10.010 1006.20.010 
1006.30.010 
1006.40.010 1102.90.310 
1103.19.510 
1103.20.350 1104.19.250 1104.29.250 
1901.20.122 1901.20.162 
1901.90.142 
1901.90.587 
1904.10.211 1904.20.211 
1904.90.120 
2106.90.517  
 
2. Wheat, meslin, triticale and their processed products 
 
1001.11.010 
1001.19.010 
1001.91.011 1001.91.019 
1001.99.011 
1001.99.016 1001.99.019 1008.60.210 
1101.00.011 
1101.00.091 1102.90.210 
1103.11.010 
1103.19.210 1103.20.110 
1103.20.510 
1104.19.111 1104.19.121 
1104.29.111 
1104.29.121 1108.11.010 
1901.20.131 
1901.20.151 1901.90.151 1901.90.171 
1904.10.221 
1904.20.221 1904.30.010 
1904.90.210 
2106.90.214 
 
3. Barley and its processed products 
 
1003.10.010 1003.90.011 
1003.90.019 
1102.90.110 1103.19.110 
1103.20.410 
1104.19.410 1104.29.410 1901.20.141 
1901.90.161 
1904.10.231 
1904.20.231 1904.90.310 
2106.90.216 
 G/STR/N/16/JPN 
 
- 14 - 
 
  4  MILK PRODUCTS 
I. ENUMERATION OF STATE TRADING ENTERPRISES A. Identification of State Trading Enterprises 
Agriculture and Livestock Industries Corporat ion (hereinafter referred to as "ALIC"). 
B. Description of Products Affected (Including Tariff Item Number(s) Encompassed in Product 
Description) 
Designated dairy products for general use (skimmed milk powder, skimmed milk solids, whole milk 
powder and solids, condensed milk, butter milk po wder and other solids, whey and modified whey, 
butter and butter oil), hereinafter referred to as "designated dairy products". As for the tariff item numbers of the specific products, see the notification on the administration of tariff quotas (G/AG/N/JPN/1). 
II. REASON AND PURPOSE 
A. Reason of Purpose for Establishing and/or Maintaining State Trading Enterprise 
ALIC is authorized to take measures to stabilize supply and demand situations of and prices for 
milk products, to promote sound development of dairy and related industries and to improve 
national diet under the Manufacturing Milk Producer Compensation Temporary Law and the Agriculture and Livestock Industries Corporation Law.  
As a part of such measures, ALIC, as a state trad ing enterprise, imports designated dairy products 
to ensure proper and smooth operation of the syst em to stabilize supply/demand and price of the 
designated milk products. 
B. Summary of Legal Basis for Granting the Relevant Exclusive or Special Rights or Privileges, 
Including Legal Provisions and Summary of Statutory or Constitutional Powers 
Article 13 of the Manufacturing Milk Producer Compensation Temporary Law. Article 10 of the Agriculture and Livestock Industries Corporation Law. 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE 
A. Summary Statement Providing Overview of Operations of the State Trading Enterprise 
ALIC deals with in-quota imports of designated dairy products established in 
Schedule XXXVIII-Japan in the WTO Agreement. 
ALIC is not involved, in the marketing or distribution of over-quota imports of designated dairy 
products, except for the collection of a part  of over-quota tariffs of such imports. 
B. Specification of Exclusive or Special Rights  or Privileges Enjoyed by the State Trading 
Enterprise 
ALIC collects mark-ups on imported designated dairy products which are bound in 
Schedule XXXVIII-Japan in the WTO Agreement.  
C. Type of Entities other than the State Tradin g Enterprise that are allowed to Engage in 
Importation/Exportation and Conditions for Participation 
Private traders can freely import designated dairy products subject to over-quota tariffs 
established in Schedule XXXVIII-Japan in the WTO Agreement. G/STR/N/16/JPN 
 
- 15 - 
 
  D. How Import/Export Levels are established by the State Trading Enterprise 
ALIC imports designated dairy products under the current access opportunities established in 
Schedule XXXVIII-Japan in the WTO Agreement.  
E. How Export Prices are determined 
This item is not applicable for ALIC.  
F. How the Resale Prices of Imported Products are determined 
The resale prices are determined by a tender.  
The prices, however, are not to be above the sum of the ALIC purchase prices and the mark-ups 
bound in Schedule XXXVIII-Japan in the WTO Agreement.  
G. Whether Long-Term Contracts are negotiated by the State Trading Enterprise. Whether the 
State Trading Enterprise is used to Fulfil Contractual Obligations Entered into by the 
Government 
ALIC has no long term contracts on the import of designated dairy products. H. Brief Description of Market Structure 
Total national demand for milk and milk products in FY 2014 was 11.69 million tons milk 
equivalent.  
7.33 million tons of raw milk were produced in FY 2014 of which 3.36 million tons were processed 
for milk products. Annual production of butter, sk immed milk powder and cheese in FY 2014 were 
62 thousand tons, 121 thousand tons and 47 thousand tons, respectively. 
4.43 million tons milk equivalent of milk products were imported to meet the demand in FY 2014. 
Annual imports of butter, skimmed milk powder and cheese in FY 2014 were 13 thousand tons, 
25 thousand tons (excluding skimmed milk powder for animal feed) and 236 thousand tons, 
respectively. 
IV. STATISTICAL INFORMATION  
(See attached Tables I – III). 
V. REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE 
None. 
VI. ADDITIONAL INFORMATION 
None. 
  G/STR/N/16/JPN  
 
- 16 - TABLE I 
STATE TRADING: AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
STATISTICAL INFORMATION, IMPORTS 
(Unit: Metric tons, Yen/Kg) 
Description of products 
(including HS numbers) Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price Average representative 
domestic sales price Mark-ups National 
production 
1 2 3 4 5 6 7 
Skimmed milk powder and skimmed milk solids  (0402.10, 0402.21, 0402.29) 7,145 (2013) 
24,552 (2014) 
17,357 (2015)
*1 4,970 
22,397 
15,217*1 366 
410 
303*1 600 
619 650 - 
- - 128,818 
120,922 
130,184
*1 
Whole milk powder and other solids  (0402.21, 0402.29) 173 (2013) 
73 (2014) 
87 (2015)
*1 0 
0 0 - 
- - 843 
860 891 - 
- - 11,016 
11,604 
12,526
*1 
Condensed milk (0402.99) 7 (2013) 
35 (2014) 
23 (2015)
*1 0 
0 0 - 
- - 372 
378 391 - 
- - 35,697 
33,653 
34,560
*1 
Buttermilk powder and other solids (0403.90) 1 (2013) 
1 (2014) 
18 (2015)
*1 0 
0 0 - 
- - *2 
*2 
*2 - 
- - *2 
*2 
*2 
Whey and modified whey 
(0404.10) 14,542 (2013) 
14,449 (2014) 
16,157 (2015)*1 4,225 
3,911 
5,890*1 242 
270 
219*1 *2 
*2 
*2 - 
- - *2 
*2 
*2 
Butter and butter oil 
(0405.10, 0405.20, 0405.90) 4,386 (2013) 
14,189 (2014) 
13,913 (2015)*1 3,997 
13,653 
13,173*1 442 
451 
416*1 1,178 
1,208 
1,268 - 
- 
- 64,302 
61,652 
66,295*1 
Note: (*1) The figures with *1 in column 2, 3, 4 and 7 are tentative data.   (*2) No official data available.   
  G/STR/N/16/JPN  
 
- 17 - TABLE II 
STATE TRADING: AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
STATISTICAL INFORMATION, EXPORTS 
(Unit: Metric tons, Japanese Yen) 
Description of products 
(including HS numbers) Total quantity 
exported Quantity exported by 
state trading 
enterprise Average 
procurement 
price Average representative 
domestic sales price Average export 
price National production 
1 2 3 4 5 6 7 
Skimmed milk powder and 
skimmed milk solids  (0402.10) 10 (2013) 
13 (2014) 
81 (2015)
*1 0 
0 0 - 
- - 600 
619 650 - 
- - 128,818 
120,922 
130,184
*1 
Whole milk powder and other solids (0402.21, 0402.29) 132 (2013) 
193 (2014) 
120 (2015)
*1 0 
0 0 - 
- - 843 
860 891 - 
- - 11,016 
11,604 
12,526
*1 
Condensed milk (0402.99) 27 (2013) 
104 (2014) 
68 (2015)
*1 0 
0 0 - 
- - 372 
378 391 - 
- - 35,697 
33,653 
34,560
*1 
Buttermilk powder and other solids (0403.90) 18 (2013) 
80 (2014) 
70 (2015)
*1 0 
0 0 - 
- - *2 
*2 
*2 - 
- - *2 
*2 
*2 
Whey and modified whey 
(0404.10) 1 (2013) 
1 (2014) 
1 (2015)*1 0 
0 0 - 
- - *2 
*2 
*2 - 
- - *2 
*2 
*2 
Butter and butter oil 
(0405.10, 0405.20, 0405.90) 3 (2013) 
6 (2014) 
2 (2015)
*1 0 
0 0 - 
- - 1,178 
1,208 1,268 - 
- - 64,302 
61,652 
66,295
*1 
Note: (*1) The figures with *1 in column 2 and 7 are tentative data.  (*2) No official data available.   
  G/STR/N/16/JPN  
 
- 18 - TABLE III 
STATE TRADING: AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
(Unit: Metric tons, Japanese Yen/Kg.) 
Description of products 
(including HS numbers) Domestic purchases by 
state trading enterprise National production Domestic sales by state 
trading enterprise National consumption 
1 2 3 4 5 
Skimmed milk powder and skimmed milk solids 
(0402.10, 0402.21,0402.29) 0 (2013) 
0 (2014) 0 (2015) 128,818 
120,922 
130,184
*1 0 
0 0 145,000 
140,000
*1 
*2 
Whole milk powder and other solids (0402.21, 0402.29) 0 (2013) 
0 (2014) 0 (2015) 11,016 
11,604 
12,526
*1 0 
0 0 12,000 
12,000
*1 
*2 
Condensed milk  (0402.99) 0 (2013) 
0 (2014) 0 (2015) 35,697 
33,653 
34,560
*1 0 
0 0 37,000 
36,000
*1 
*2 
Buttermilk powder and other solids  (0403.90) 0 (2013) 
0 (2014) 0 (2015) *2 
*2 
*2 0 
0 0 *2 
*2 
*2 
Whey and modified whey 
(0404.10) 0 (2013) 
0 (2014) 0 (2015) *2 
*2 
*2 0 
0 0 *2 
*2 
*2 
Butter and butter oil 
(0405.10, 0405.20, 0405.90) 0 (2013) 
0 (2014) 0 (2015) 64,302 
61,652 
66,295
*1 0 
0 0 74,000 
74,000
*1 
*2 
Note: (*1) The figures with *1 in column 3 and 5 are tentative data. 
 (*2) No official data available.  
__________