G/C/W/693  
 
8 April 2014  
(14-2205)  Page: 1/5  
Council for Trade in Goods 
 Original: English  
 
REPLIES FROM JAPAN TO CANADA'S FOLLOW-UP QUESTIONS 
REGARDING JAPAN'S WOOD USE POINTS PROGRAM1 
The following submission, dated 7 April 2014, is bein g circulated at the request of the Delegation 
of Japan. 
_______________ 
Question: 
 
a. Japan advised that foreign wood is eligib le and that an updated list of eligible 
products would be published. Canada would like to know if such list was published, 
and if so, are any foreign products listed? 
 
(i) If no foreign products are listed, could Japan explain why? 
Answer: 
 
With regard to publication, Japan provides answer s based on the two different criteria as follows. 
 
(1) Designation of tree species 
 
As explained in the "Answers to the Questions from Canada on the Japanese Wood Use 
Points Program" (G/C/W/686), tree species which fulfil the criteria, regardless of foreign or 
domestic origin, can be designated by the Committee on Fund Management and Administration. 
 
The designated tree species are published without delay. As a result of the Committee 
meetings held in the end of December 2013 and in the beginning of March 2014, additional tree species, including foreign tree species, were designated. They were announced on the 
websites of Forestry Agency of Japan and the Secretariat of the Wood Use Points Program. 
 (2) Wood products using the designated tree species 
 
The requirements for construction materials to be used for eligible construction works under this Program are made public on the websit es of Forestry Agency of Japan and the 
Secretariat of the Wood Use Points Program 
(http://www.rinya.maff.go.jp/j/riyou/po int/pdf/mokuzai_point_jisshi1403.pdf, 
http://mokuzai-points.jp/common/file/new srelease/mokuzai_point_jisshi1403.pdf). 
 
The summaries of such requirements are explained below: 
 
(a) Major requirements for the construction of wooden houses are as follows: 
 
(i) More than the predetermined volume of main structural members, such as 
posts, beams, cross beams and sills is made of eligible solid wood or certain laminated lumber. The volume is predetermined as the amount equivalent to 
more than half of the entire volume of the main structural members and more 
than half of each laminated lumber must be made of eligible wood; 
                                               
1 See document G/C/W/690. G/C/W/693 
 
- 2 - 
 
   
(ii) the houses are built by eligible construction methods. 
 
It is not necessary to register in advance these products such as eligible solid wood or 
laminated lumber, as it is easy to determine that 100% or more than half of the 
volume of such products is made of eligible wood. Therefore, these products are not listed. 
 
(b) One of the requirements for interior or  exterior works using wood is to use the 
Registered Construction Materials or boards made of eligible solid wood. 
 
(i) Registered Construction Materials 
 
Some construction materials are made up of both eligible and non-eligible 
wood. To be registered as "the Register ed Construction Materials", the ratio of 
eligible wood needs to be more than half of the entire volume of the materials. 
 
The construction materials approved by the Expert Committee as the 
"Registered Construction Materials" are registered by the Secretariat of Wood 
Use Points Program. While the Committee on Fund Management and Administration designates tree species of eligible wood, the Expert Committee 
deals with operational matters such as approving construction materials based 
on the tree species of eligible wood. These Registered Construction Materials are listed and made public on the webs ite of the Secretariat (http://mokuzai-
points.jp/cgibin/search/material/). 
 
Public applications for the Registered Construction Materials have been accepted 
three times so far. Since there have been no applications of foreign-made 
construction materials, they are not listed at present. On the list, however, there are many Japanese-made construction materials which consist of both foreign and domestic wood. 
 
As mentioned above, additional tree species were designated as tree species of eligible wood as a result of the examination by the Committee on Fund 
Management and Administration in the end of December 2013. In order to 
provide the construction materials made of newly designated tree species with an opportunity for registration, public applications for the Registered 
Construction Materials were called. The list of the Registered Construction 
Materials was updated and published in March after the process of approval and registration of such materials. 
 
(ii) Boards made of eligible solid wood 
 
It is not necessary to register in advance boards made of eligible solid wood, as 
it is easy to determine that 100% of their volume is made of eligible wood. 
Therefore, they are not listed. 
 
Question: 
 b. Japan explained that the same criteria wo uld be used to assess the eligibility of all 
wood products, whether local or fore ign. Canada would like to know: 
(i) If all the products that are currentl y on the list of eligible products were 
submitted by individual co mpanies or industry associations in Japan with all 
the required documentation (i.e. grow ing forest data, economic impact 
assessment, etc.)? 
 Answer: 
 Concerning all the products that are currently on the list as the Registered Construction Materials for interior or exterior works, all the required documentation (e.g. application form, document on G/C/W/693 
 
- 3 - 
 
  product specification) were submitted by applican ts, and the Expert Committee approved that they 
had fulfilled the requirements.  "Growing forest data" and "economic impact assessment" referred to in Canada's questions are 
required when the Committee on Fund Management  and Administration examines designation of 
tree species of eligible wood. However, they are not necessary for the application for the Registered Construction Materials for interior or exterior works. The approval of the Registered 
Construction Materials and the designation of tree species of eligible wood are different exercises 
by the two separate committees, and are not decided at the same time.  
(ii) Why the Forestry Agency create d a separate Funding Management and 
Administration Committee to decide on eligibility of imported species under 
the Wood Use Points program. 
 
Answer: 
 
The Committee on Fund Management and Administration, which consists of independent experts 
who are not parties concerned, was established in order to make a fair and technical judgement in 
the process of designation of tree species of eligib le wood, irrespective of imported or domestic 
tree species.  
(iii) What are the mechanisms that ensu re the uniformity of application of the 
criteria by the various local Co mmittees on Fund Management and 
Administration and the Prefecture councils? 
 
Answer: 
 
The Prefecture Councils are not involved in the designation of tree species of eligible wood. 
Applications for the designation of tree species of  eligible wood are submitted to the Committee on 
Fund Management and Administration, and the Co mmittee examines and designates tree species. 
The applications are properly examined at the Committee according to the eligibility criteria 
provided in the information sheet entitled "on Im plementation of the Wood Use Points Program" 
published on 29 March 2013 and the "Guidelines for Application Procedures for Tree Species of Eligible Wood and Eligible Construction Methods under the Wood Use Points Program" published on 
17 October 2013. 
 
(iv) With regards to local Committees on Fund Management, will Japan publish a 
list of the members of these local en tities and the organization they 
represent? 
Answer: 
 
The Committee on Fund Management and Administration does not exist at the local level. The 
Committee consists of members with expertise in forest, wood, housing, construction and fund management, etc. The information about the members is not disclosed in order to maintain their 
neutrality in the decision-making process. 
 Question: 
 
c. In its responses to Canada, Japan refers  to a "clearer guidan ce" on criteria and 
procedures to be issued in October. 
(i) Canada would like Japan to indicate the main differences with the previous 
guidance. 
 Answer: 
 This guideline provides a clearer guidance on the application procedures for the designation of tree species of eligible wood and eligible construction methods, which have been explained in the 
published documents such as "on Implementation of the Wood Use Points Program". 
 G/C/W/693 
 
- 4 - 
 
  (ii) Canada would like to understand wh y this new guidance has yet to be 
published. 
Answer: 
 
At the meeting of the Council for Trade in Goods held in October 2013, Japan explained that the 
guideline was published on the websites of Forest ry Agency of Japan and the Secretariat of the 
Wood Use Points Program respectively on 17 October 2013 
(http://www.rinya.maff.go.jp/j/riyou/point/guideline.html, http://mokuzai-
points.jp/common/file/about/guideline.pdf).  Question: 
 
d. One of the stated objectives of this  program is to contribute to proper 
management and sustainability of forest as  well as development of rural areas. It 
is Canada's view that the criteria around the growth of a forest applies mostly to 
planted forest and do not translate well to  natural, mature and bio-diverse forest. 
(i) Can Japan expand on the rationale fo r using "growing forest" as a criterion 
for this program instead of using in ternationally agreed criteria and 
indicators for sustainable forest mana gement such as the framework of the 
Montreal Process and the Santiago Declaration, to which Japan is a 
signatory? 
 
Answer: 
 
Japan participates in the Montreal Process, and will continue to commit itself to the process and 
the Santiago Declaration. The Wood Use Points Program requires eligible wood to be certified as sustainable wood, and in addition, to be of tree species whose resources are increasing in volume 
on a country basis. These requirements aim to more effectively and efficiently achieve the 
objective of the program, which is, to contribute to proper management and conservation of forest, prevention of global warming and promotion of a recycling-oriented society, through promoting use of tree species whose resources are increasing in volume. 
 
(ii) One of the criteria for eligibility is  the provision of information quantifying 
the economic impact of local and foreign wood species and products in rural 
Japan; could Japan provide a rational on  these domestic impact criteria, and 
to further elaborate on how this is not a de facto discriminatory criterion for 
foreign products? 
 
Answer: 
 Applicants for the designation of tree species of eligible wood need to demonstrate that the use of 
the tree species will have certain positive effects on the economy of rural areas in Japan. This is 
because one more objective of the program is to serve for the development of rural areas through 
promoting wood use. It is therefore necessary to evaluate positive effects on the economy of rural 
areas in order to effectively and efficiently achieve the objective. 
 
As the fact that foreign wood accounts for about 72% of the total wood supply in Japan (2012) 
shows, foreign wood contributes to Japan's economy through its procurement, processing and use. As explained in the "Answers to the Questions from Canada on the Japanese Wood Use Points Program" (G/C/W/686) and the guideline publishe d in October 2013, applicants only need to 
demonstrate objectively that the tree species contribute to an increase in employment in rural 
areas or sales in relevant industries through, for example, transportation, sawing, processing or use of the tree species. Therefore, this criterion is not de facto  discrimination against foreign 
wood. In fact, applications of tree species of fore ign wood have been submitted, and some of them 
were designated as tree species of eligible wood, as a result of the Committee on Fund Management and Administration meetings held in December 2013 and March 2014. This 
demonstrates that the criterion is not discriminatory against foreign wood. 
 G/C/W/693 
 
- 5 - 
 
  Question: 
 e. Japan noted in its response that all fo reign goods were eligible for redemption 
with wood points, as long as they were  selected as a result of the public 
application process. Would Japan explain how a foreign good could qualify as one 
of the eligibility criteria is th at a product must be regional? 
Answer: 
 
One of the categories of goods and services, which can be redeemed by the Wood Use Points under the program, consists of agricultural, fore stry and fishery products. Foreign goods can be 
eligible for redemption with the Points if they are selected as a result of the public application 
process. In fact, agricultural, forestry and fish ery products of foreign origin, recognized as a 
specialty of a region, were selected as eligible goods. In addition, gift certificates are one of the goods that can be redeemed, and such certificat es can be used to purchase foreign goods. 
 
Question:  
f. Canada would like to know when Japan will notify this program to the World Trade 
Organization? 
Answer: 
 
Japan will notify the program under a relevant WTO agreement as appropriate. 
 Question: 
 
g. Media articles suggest that consumer s can receive up to a total amount of 
600,000 Wood Use points, equivalent to ¥600,000. Could Japan please confirm the 
total incentive amount that a consumer  can receive for an individual house 
construction project under this program? 
Answer: 
 
As announced on the websites of Forestry Agency of Japan and the Secretariat of the Wood Use 
Points Program, 300,000 points are granted for one wooden house constructed under the program. In addition, up to 300,000 points are granted per house for either (1) floor or interior wall/ceiling 
using wood of more than 9m
2, or (2) exterior wall using wood of more than 10m2, in accordance 
with area using wood. Consumers, therefore, can receive up to 600,000 points (equivalent to ¥600,000) per house under the program. 
 
Question:  h. Lastly, Canada would like to know if Ja pan intends to extend this program beyond 
the original end date of 31 March 2014, and if so, at what incentive level. 
Answer: 
 
Under the original program, the construction works of wooden houses and interior or exterior using 
wood the works of which commenced from 1 April 2013 to 31 March 2014 were eligible for wood use points. However, as the FY 2013 supplementary budget, which aims to mitigate a last-minute 
rise in demand before the consumption tax increase on 1 April 2014 and a reactionary fall in 
demand after that, was approved, the period of  eligible works was extended to the end of 
September 2014 in order to help create demand in the first half of FY 2014. The amount of points granted remains the same. 
 
__________