G/C/W/700  
 
18 June 2014  
(14-3561)  Page: 1/5  
Council for Trade in Goods 
 Original: English  
 
 REPLIES FROM JAPAN TO ADDITIONAL QUESTIONS FROM CANADA 
REGARDING JAPAN'S WOOD USE POINTS PROGRAM1 
The following submission, dated 18 June 2014, is be ing circulated at the request of the Delegation 
of Japan. 
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Question: 
 
Canada would like to thank Japan for its responses received 7 April 2014 to questions circulated at the 18 October 2013 Council for Trade in Goods (CTG). 
 
Canada continues to closely monitor the im plementation of Japan's Wood Use Points 
Program, which Canada understands has b een prolonged beyond the one year time 
frame initially noted by Japan. Canada remains concerned that the program could 
discriminate against non-Japanese produc ts. Canada would also like to take the 
opportunity to raise some additional questi ons concerning the registration process: 
 
Answer: 
 
Before getting into answers to the additional qu estions submitted by Canada on 16 April 2014, we 
would like to explain the future treatment of the Wood Use Points Program. 
 As decided when the FY 2013 supplementary budget was approved, the construction works of wooden houses and interior or exterior works using wood, which will have commenced by the end 
of September 2014, were planned to be eligible for wood use points. 
 We would like to confirm again that the wood use points under this program will not be granted for 
the works which will commence after October 2014. In other words, this program will end 
substantially by the end of September 2014.  
(a) Now that the program has been extended: 
 
(i) When will Japan formally notify the program to the WTO? 
 
Answer: 
 
Japan will notify the program as appropriate. 
 
(ii) What is the timeline for th e completion of the program? 
 
Answer: 
 
The construction works of wooden houses and interior or exterior works using wood, which will have commenced by the end of September 2014, can be eligible for wood use points. The 
application for wood use points will be accepted  until the end of January 2015, but this deadline 
may be extended for a couple of months depending on the number of applications.  
                                               
1 See document G/C/W/696. G/C/W/700 
 
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  (iii) Do you expect that the full amo unt allocated to the program will be 
exhausted by the official end date of the program? If funding remains, how 
will it be used? 
 
Answer: 
 
Considering the amount of points applied and necessary expenses spent so far, the budget 
allocated to this program has been used as expected. The deadline for the application for wood use 
points, which is the end of January 2015, may be extended depending on the number of applications. If the budget is not used up, the rema inder will be returned to the National Treasury. 
 
(b) Canadian Industry has submitted an application to have Canadian species 
recognized under the program, and it is our understanding that some applications 
from outside Japan have been accepted. We would like to know how many foreign 
applications Japan has received and what is the acceptance rate. We would also 
like to know this information for Japanese applications. 
 
Answer: 
 
The total of ten applications, six from foreign indust ry groups, four from domestic firms, have been 
submitted up to now. Among them, three applications from the former applicants and 
one application from the latter applicant demonstrated that the submitted data was sufficient and 
met the requirements. Douglas Fir (US), European Spruce (Austria), European Pine and European 
Spruce (Sweden) and Radiata Pine (New Zealand) we re designated as tree species of eligible wood 
by the Committee on Fund Mana gement and Administration. 
 Some applications from domestic firms, which include two applications for Japanese tree species, 
were not successful as data and explanation was not sufficient and will be examined again if 
additional data is provided to the Committee.  A Canadian industry group submitted on 24 October 2013, applications for 24 tree species, such as 
White Spruce (Canada). The Committee pointed out that the submitted data showing increase in 
resource volume was not for each applied tree species but for the entire forest, and the data and explanation were not sufficient. The Committee communicated the result to the Canadian group in 
detail, but the Canadian group has not yet submitted additional data to the Committee. 
 (c) Canada would also be interested in kn owing more about the timelines associated 
with the application process: 
 
(i) How long does it take between su bmitting an application and receiving 
approval? 
 
Answer: 
 
The Committee on Fund Management and Administration is held every two to three months. If an 
application that appropriately proves the fulfilment of the criteria is submitted, it takes from a few weeks to three months between submitting an application and receiving approval, depending on 
the timing of submission. 
 
(ii) How long does it take, once accept ed, to be added to the list of eligible 
products? 
 
Answer: 
 
An approved tree species will be added to the list of tree species of eligible woods and made public 
in about a week.  
(d) In Japan’s responses submitted 7 April 2014, information is provided on the 
Committee on the Fund Management and Administration and on the Experts 
Committee. Canada would seek clarification on the following: 
 G/C/W/700 
 
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  (i) Can you confirm that it is th e Committee on Fund Management and 
Administration that is the only entity  responsible for "approving" species of 
eligible wood? 
 
Answer: 
 
The Committee on Fund Management and Administration is the only entity responsible for approval 
and designation of tree species of eligible wood. 
 
(ii) What are the criteria used by th e Experts Committee to approve or reject 
materials from designated species? 
 
Answer: 
 
As explained in the answers to the questions pr eviously submitted by Canada (G/C/W/693), the 
"Registered Construction Materials" are the only ma terials required to be approved by the Expert 
Committee in order to be eligible for wood use points under this program. For criteria for approval 
of the "Registered Construction Materials", please refer to the following websites of the 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_jisshi1406.pdf , http://mokuzai-
oints.jp/common/file/newsrelease/mokuzai_point_jisshi1406.pdf). 
 
(e) It is Canada's understanding that on ce a species has been accepted by the 
National Fund Management Committee, the materials thereof have to be submitted 
to and accepted by the Experts Committee at  the national level and they also have 
to be accepted at the prefectural level in order to be fully eligible under the 
program. 
 
(i) Is our understanding correct? And if not, how so? 
 Answer: 
 Canada's understanding is not correct.  
As explained in the answers to the questions prev iously submitted by Canada (G/C/W/693), once a 
tree species is designated as tree species of eligible wood, materials used for construction of wooden houses as well as boards made of eligible solid wood and used for interior or exterior 
works using wood are eligible for wood use points without any further approval. For the 
"Registered Construction Materials" used for interi or or exterior works using wood, approval by the 
Expert Committee is needed. Only the approval  by the Expert Committee is needed, but the 
approval at the prefectural level is not. 
 
For your information, please refer to the answers to the questions previously submitted by Canada 
(G/C/W/693) and the websites of  Forestry  Agen cy of Japan and the Secretariat of the Wood Use 
Points Program ( http://www.rinya.maff.go.jp/j/riyou/point/pdf/mokuzai_point_jisshi1406.pdf , 
http://mokuzai-points.jp/common/file/newsrelease/m okuzai_point_jisshi1406.pdf) with regard to 
other requirements for construction of wooden houses and interior and exterior works using wood. 
 
(ii) What are the specific responsibilit ies of the Prefecture Councils in the 
Wood-Use Points Program? 
 
Answer: 
 
The responsibilities of the Prefecture Councils are as follows: 
 
(1) Approval of house builders who do work eligible for wood use points within one 
prefecture; 
(2) Recommendations for eligible construction methods; 
(3) Response to questions from consumers; (4) Public relations activities such as advertising the Wood Use Points Program. 
 G/C/W/700 
 
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  (iii) Is this prefectural recognition au tomatic (i.e. done with the exact same 
documentation used at the National leve l )  o r  d o  f o r e i g n  e n t i t i e s  h a v e  t o  
submit an application to each of the 47 prefectures? 
 
Answer: 
 
Since the questions from (iii) to (vii) seem to be on recommendations given by the Prefecture 
Councils, we will give answers regarding the process of recommendations for eligible construction 
method.  As explained in the answers to th e questions submitted previously by Canada 
(G/C/W/693), for construction of wooden houses, one of the requirements is that the houses are built by eligible construction methods. 
 
If someone wants to add another construction meth od as eligible one, he/she needs to apply to 
each Prefecture Council. Based on the application, each Prefecture Council decides whether to 
make a recommendation to the Committee on Fund Management and Administration, and then the 
Committee decides whether to approve the app lication. Each Prefecture Council makes a 
recommendation based on application documents su bmitted by the applicant, considering each 
Prefecture's local circumstances. 
 All the successful applicants whose construction methods were approved had prepared and submitted sufficient data for the prefecture conc erned. The recommendations were given based on 
such applications. 
 
(iv) Are the eligibility criteria at the pr efectural level the same as the national 
level? For example, do foreign enti ties have to demonstrate detailed 
economic benefits for each of th e 47 prefectures, in addition to 
demonstrating this at the national level? 
 
Answer: 
 When an application is submitted, each Prefecture Council makes a recommendation if the applied 
construction method using tree species designated as tree species of eligible wood is recognized as 
a method which has positive effects on the rural economy of the prefecture.  
All the successful applicants whose construction methods were approved had prepared and 
submitted sufficient data for the prefecture concerned that proved their methods had positive effects on the rural economy. The recommendatio ns were given based on such applications. 
 
(v) Is there a single contact point for re cognition at the prefecture level or do 
the foreign entities have to contact each of the 47 prefectures separately? 
 
Answer: 
 
The contact points of Prefecture Councils are listed in 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. Applicants  have to contact the Prefecture Councils they 
want to apply to. The Forestry Agency of Japan communicates to all the Prefecture Councils 
information about the designation of tree species so that applicants can make applications 
smoothly.  
(vi) If a foreign material does not meet the criteria for one or more prefectures, 
is it still eligible for the other pr efectures where it meets the criteria? 
 Answer: 
 It can be eligible for other prefectures where it meets the criteria.  
(vii) What are the timelines for processing the application at the prefecture level? 
Are the 47 prefectures following the same timelines? 
 G/C/W/700 
 
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  Answer: 
 
All the Prefecture Councils are requested to comple te the examination of applications and decide 
whether to make recommendations to the Committee on Fund Management and Administration, 
within about one month and a half. If the Prefecture Councils cannot meet this timeline, they can 
still make recommendations for the next meeting of the Committee on Fund Management and Administration. 
 
(f) Once a species and associated materials have been recognized under the program, 
are they approved on a permanent basis or is a re-application required after a 
prescribed period of time? 
 
Answer: 
 
Eligibility of tree species is effective as long as this program is being implemented. 
 (g) Was the Japanese wood industry requir ed to demonstrate that it meets these 
program requirements both at the nation al and prefectural levels, before being 
eligible under the program? 
 
(i) More specifically, for each of the Ja panese wood species currently approved 
under the program was the "growing forest" criteria demonstrated? 
 
(ii) Similarly, for each of the Japa nese wood species approved under the 
program, was the economic impact a ssessment conducted and its economic 
benefits demonstrated, both at th e national and prefecture level? 
 
Answer: 
 
As we explained at the last meeting, there are certain tree species and construction methods which have already been proven to meet the criteria  of resources that are increasing in volume on 
a country basis and the criteria of use of the species that have certain positive effects on the 
economy of rural areas in Japan. The Committee on Fund Management and Administration has not raised any questions in this regard. Other tree  species and construction methods can also be 
designated as eligible regardless of foreign or domestic origin, based on the same criteria. 
 
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