WT/TPR/M/310/Add.1  
17 June 2015  
(15-3146)  Page: 1/308  
Trade Policy Review Body 
9 and 11 March 2015 Original: English/Spanish  
anglais/espagnol  
inglés/español  
  
 
 
  TRADE POLICY REVIEW 
JAPAN 
MINUTES OF THE MEETING 
Addendum 
Chairperson: H.E. Mrs. Mariam MD Salleh (Malaysia) 
This document contains the advance writte n questions and additional questions by 
WTO Members, and replies provided by Japan.1 
 
 
Organe d'examen des politiques commerciales 
9 et 11 mars 2015 
EXAMEN DES POLITIQUES COMMERCIALES 
JAPON 
COMPTE RENDU DE LA RÉUNION 
Addendum 
Présidente: S.E. Mme. Mariam MD Salleh (Malaisie) 
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par le Japan.1 
 
 
Órgano de Examen de las Políticas Comerciales 
9 y 11 de marzo de 2015 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
JAPÓN 
ACTA DE LA REUNIÓN 
Addendum 
Presidenta: Excma. Sra. Mariam MD Salleh (Malasia) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por el 
Japón.1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/310/Add.1 
 
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 1. AUSTRALIA 
Report by the Secretariat - WT/TPR/S/310 
 
Trade and Investment Regime 
1.2.1 Trade in goods and services  
Page 17, 1.22  
Australia notes the 'Program for Promoting Japan as an Asian Business Centre and Direct 
Investment into Japan'.  Question 
 Can Japan provide further details of the types of tax incentives being offered under this programme? 
 
RESPONSE  
The Government of Japan is offering the fo llowing tax incentives under the "Act for 
Promotion of Japan as an Asian Business Center ", in order to attract global enterprises' 
R&D and Regional Headquarters.  
1. Corporate tax breaks  
 20% income deduction for 5 years (This tax incentive will end on 31 March 2015)  
2. Income tax breaks  
Deferral of taxation upon exercising st ock options granted by overseas parent 
companies to the time of selling the shares 
 
1.3 Outlook Page 18, 1.27  
Australia notes the regulatory reforms to be pursued by utilizing the newly designated six National 
Strategic Special Zones (NSSZ).  
Question 
 
Can Japan identify examples of possible regulatory  reforms (in addition to the clarification of 
employment rules/practices) that may be implemented in the Tokyo and Kansai areas, to foster 
greater levels of innovation activity?   RESPONSE 
 
As of February 2015, approved zone plan s for Tokyo and Kansai Areas include the 
following regulatory reforms: i) accele rated assessment procedures for advanced 
medical treatment of medicines approved in  six Western countries including Australia, 
which have not yet been approved in Japan, in specific hospitals or medical centers, 
ii) exceptional measures on regulations on numbers of bed for providing high-standard 
medical care services, and iii) establishing  Employment Consultation Center which 
provides individual consultation servic e based on the "Employment Guidelines" 
(published in April 2014), in order to support  foreign companies and ventures business 
through clarifying the conditions of employ ment and work. So far, three centers were 
established at Fukuoka in November 2014, Kansai and Tokyo Areas in January 2015. 
 2.1 Major trade-related laws and regulations 
Page 19, Table 2.1 
 Australia notes the 2014 amendment to the Act on Special Measures Concerning the Handling of 
Legal Services by Foreign Lawyers (1986 Law No. 6). 
 WT/TPR/M/310/Add.1 
 
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Question 
 
Could Japan expand on the effects of this amendment for foreign lawyers?  
RESPONSE 
 The effect of this amendment is that a fo reign lawyer registered under the laws and 
regulations of Japan is allowed to esta blish a legal professional corporation 
("Gaikokuho-jimu-Bengosi-hojin")  to provide legal services. 
 2.3.2 Regional and preferential agreements  
Page 21, Table 2.2 
 Australia notes that the Secretariat's report was published before the entry into force of the Japan 
Australia Economic Partnership Agreement (JAEPA) on 15 January 2015. 
 Question 
 We would welcome an update by Japan on how JAEPA affects the TPR's assessments of Japan's overall simple average applied MFN tariff rate.  
RESPONSE 
 It is too early to give an update, as there is not sufficient trade data necessary for the 
proper reassessment of the overall simple aver age, due to the short period of time since 
JAEPA's entering into force.  
3.1.1 Customs procedures and requirements 
Page 26, paragraph 3.3   Australia notes the reduction in release time for Authorized Economic Operator import cargoes and 
the time release study results for AEO vs non-AEO participants.  
 Question 
 Could Japan provide further information on what  the key drivers were to achieving the time 
savings for AEO participants? 
 
RESPONSE  Japan considers the less frequent documentar y examination and physical inspection of 
AEO imported cargos reflecting the compliance of  AEO to be a crucial factor for reducing 
time for customs clearance. Japan has a vi ew that this would be a major benefit 
for AEOs. 
 
3.1.6 Contingency trade measures Page 33, 3.30 
 
Question 
 What steps has Japan taken to ensure the multi-ministry makeup of the anti-dumping and 
countervailing investigation teams are well-coordinated?  
 RESPONSE 
 
The Minister of Finance, the Minister in char ge of the relevant industry in Japan and the 
Minister of Economy, Trade and Industry shall keep in close contact with each other with 
respect to the investigation and price undertaking. Any determination on important 
matters involved shall be made af ter consulting with each other. 
 WT/TPR/M/310/Add.1 
 
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 [Reference] （Provisional translation ) 
* Cabinet Order on Anti-Dumping Duty 
 
Article 18. The Minister of Fi nance, the Minister in charge  of the relevant industry 
provided for in paragraph (1) of Article 8 of the Act (hereinafter in this Article referred 
t o  a s  " t h e  M i n i s t e r  i n  c h a r g e  o f  t h e  r e l e v a nt industry") and the Minister of Economy, 
Trade and Industry, where it is found necessary to initiate an investigation, shall notify 
each other of that fact. The Mi nister of Finance, the Minister  in charge of the relevant 
industry and the Minister of Economy, Trad e and Industry shall keep in close contact 
with each other (including forwarding from the Minister of Financ e to the Minister in 
charge of the relevant industry and the Mini ster of Economy, Trade and industry copies 
of documents submitted pursuant to paragrap h (1) to (5) of Article 7 and paragraph (1) 
of Article 14) with respect to the investigatio n (including the handling of the results of 
the investigation) and the undertaking offe red in accordance with paragraph (7) of 
Article 8 of the Act, and any determination on  important matters involved shall be made 
after consulting with each other. 
 
* Cabinet Order on Countervailing Duty  
Article 14. The Minister of Fi nance, the Minister in charge  of the relevant industry 
provided for in paragraph (1) of Article 7 of the Act (hereinafter in this Article referred 
t o  a s  " t h e  M i n i s t e r  i n  c h a r g e  o f  t h e  r e l e v a nt industry") and the Minister of Economy, 
Trade and Industry, where it is found necessary to initiate an investigation, shall notify 
each other of that fact. The Mi nister of Finance, the Minister  in charge of the relevant 
industry and the Minister of Economy, Trad e and Industry shall keep in close contact 
with each other (including forwarding from the Minister of Financ e to the Minister in 
charge of the relevant industry and the Mini ster of Economy, Trade and industry copies 
of documents submitted pursuant to paragrap h (1) to (5) of Article 4 and paragraph (1) 
of Article 11) with respect to the investigatio n (including the handling of the results of 
the investigation) and the undertaking offe red in accordance with paragraph (8) of 
Article 7 of the Act, and any determination on  important matters involved shall be made 
after consulting with each other.  
Question 
 
Who is the final decision maker in an anti-dumping investigation? Is it a Minister, and if so, of 
which Ministry?  
 
RESPONSE  
Any determination on important matters involv ed shall be made after all the Ministers 
concerned consult with each other.   [Reference] （Provisional translation) 
* Cabinet Order on Anti-Dumping Duty 
 
Article 18. The Minister of Fi nance, the Minister in charge  of the relevant industry 
provided for in paragraph (1) of Article 8 of the Act (hereinafter in this Article referred 
t o  a s  " t h e  M i n i s t e r  i n  c h a r g e  o f  t h e  r e l e v a nt industry") and the Minister of Economy, 
Trade and Industry, where it is found necessary to initiate an investigation, shall notify 
each other of that fact. The Mi nister of Finance, the Minister  in charge of the relevant 
industry and the Minister of Economy, Trad e and Industry shall keep in close contact 
with each other (including forwarding from the Minister of Financ e to the Minister in 
charge of the relevant industry and the Mini ster of Economy, Trade and industry copies 
of documents submitted pursuant to paragrap h (1) to (5) of Article 7 and paragraph (1) 
of Article 14) with respect to the investigatio n (including the handling of the results of 
the investigation) and the undertaking offe red in accordance with paragraph (7) of 
Article 8 of the Act, and any determination on  important matters involved shall be made 
after consulting with each other. 
 WT/TPR/M/310/Add.1 
 
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3.1.7 Standards and other technical requirements 
Page 35, 3.40   Question 
 What 'requirements in Japan' necessitate individual standards for Japanese electric fans, rice cookers, etc., that are different from international standards?  
 
RESPONSE  Regarding Japanese electric fans and Japanese  rice cookers, there are no corresponding 
international standards for performance, therefore Japan have established JIS for 
performance.  
You could see details in following JIS standards: 
Japanese electric fans: JIS C 9601 Japanese rice cookers: JIS C 9212 
 
3.1.8 Labelling and packaging requirements Page 40, paragraph 3.56   
Australia notes that there are different origin labelling requirements for imported and domestically 
produced food.  
Question 
 
Could Japan confirm that imported processed foods do  not require labelling of place of origin of the 
ingredients, and if so: 
 
- are there plans to revise this policy in the near future? 
 
RESPONSE 
 Among the processed food domestically prod uced and sold, Japan requires labelling of 
place of origin of the ingredients for the ma in ingredients (50% and more) of processed 
food that undergoes relatively minimum proc essing and not substantially changed from 
their raw or unprocessed form. As for now, there is no plan to revise this policy to 
require the same labelling fo r imported processed food. 
 Question 
 
What purposes are intended to be served by the requirement for labelling the place of origin of 
ingredients in domestically produced food, and  
- what sorts of processes must be carried out (and their associated costs) to keep track of 
the origin of ingredients and to make changes to labels? 
- do these processes and costs deter producers from switching the source of ingredients? 
 
RESPONSE  The purpose of the labelling of place of origin  of the processed food  ingredients is to 
properly  provide the information on product quality and not to mislead consumers 
regarding the place of origin of the proc essed food ingredients in order to help 
consumers make an appropriate food choice. 
 
If producers label the place of origin of the ingredients, they must know the origin of 
ingredients. When the origin of ingredients changes, the labelling needs to be changed. 
 
The item of food subject to this standard  have been decided in consideration of 
feasibility of producers. We be lieve that this standard do es not deter producers from 
switching the source of ingredients. WT/TPR/M/310/Add.1 
 
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 3.1.10 Government procurement 
Page 41, 3.1.10  Question 
 Can Japan outline what procurement policies are in place to specifically promote and engender innovation activities? 
 
RESPONSE  The Government of Japan founded the Cross-mi nisterial Strategic Innovation Promotion 
and Impulsing Paradigm Change through the Disruptive Technologies Program to 
promote innovation activities, especially in the field of science and technology. However, 
specific procurement policy for the promotion of innovation activities is not stipulated in 
these programs. 
 3.3.2 Subsidies and support 
Page 53, 3.112 
 Question 
 
Can Japan please specify what is meant by 'further support in some prefectures for local 
purchases'?  
RESPONSE 
 With regard to fuel cell vehicles, the Go vernment of Japan recognizes that some 
prefectures will plan to introduce a subs idy to consumers who purchase vehicles 
powered by fuel cells.  3.3.3 State-owned enterprises 
Page 53, Paragraph 3.117 
 Question 
 Could Japan please provide information on th e reasons for a number of "emergency" butter 
imports by the Agriculture and Livestock Industries Corporation (ALIC) in 2014? 
 
- How are these emergency butter imports calculated into Japan's Current Access quota? - Has ALIC's role as an importer of dairy products been declining in 2013-2014, as 
suggested in Table 3.14 (p. 54)?  
 
RESPONSE  
- The quantity of emergency butter imports is not included in Japan's Current Access 
quota import. (Japanese government uses the word 'additional import' instead of 'emergency import.') 
- ALIC's role as an importer of dairy products  has not been changed. The quantity of dairy 
products import by ALIC in 2014 Japanese Fiscal Year increased compared to 2013 JFY. 
 3.3.5.2 Patents 
Page 62, 3.140  
 The Government of Japan provides support for SMEs on acquisition of IPR through two initiatives 
(i) consultation services on expansion into foreign markets; and (ii) subsidising fees and costs on 
filing foreign directed applications (e.g. subsidising PCT application costs when filed in Japanese (as distinct from actually being Japanese based SMEs)). 
 WT/TPR/M/310/Add.1 
 
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Question 
 
Based on Japan's experiences in seeking to assist and support SMEs acquire IPR and expand into foreign markets, could they please inform if these initiatives: 
 
- have been widely adopted and utilised by SMEs; and - if there have been measured increases in SMEs expanding into foreign markets based on 
these initiatives. 
 RESPONSE  
The number which utilized support measures is as follows: 
 
- IP comprehensive support counters: about 150,000 (FY2013) (About 4% of the 
total consultation numbers is related to overseas expansions) 
- Subsidy for Filing Foreign Applications: about 380 (FY2013) - Reduction for search fee under the PCT: about 330 (Apr. 2014-Dec. 2014). 
 
The government of Japan has not grasped th e number of SMEs expanding into foreign 
markets based on these initiatives.  
Trade Policies by Sector 
4.1.2.1 Legal and institutional framework Page 72, Paragraph 4.13 
 
Question 
 
Could Japan please provide additional information on its agricultural policy of food self-sufficiency 
and whether this policy measure has led to increased productivity and a more efficient allocation of resources?   
- Is Japan planning to revise its food self-sufficiency targets and can it provide an update 
regarding its consideration of establishing an index for food self-sufficiency capability. 
 
RESPONSE 
 The Japanese government has promoted producti on of the crops in demand such as rice 
for feed, wheat, soybeans as well as expand ing consumption of domestic agricultural, 
forestry, and fishery products in order to improve Japan's food se lf-sufficiency ratio 
under the 3rd Basic Plan for Food, Agricult ure and Rural Areas decided by the Cabinet 
in 2010 based on the Food, Agriculture, Rural Areas Basic Act. However, the amount of 
production of these crops has not increased considerably, while the consumption of rice 
has fallen steadily. Therefore, the Japanese  government evaluated the present target 
last year, and will revise the target of food self-sufficiency ratio in the 4th Basic Plan 
which will be updated this March, taking the result of evaluation into account. 
 Japan will also indicate food self-sufficiency  potential indices as "the potential of 
domestic agriculture, forestry, and fishery to  produce food" in the 4th Basic plan which 
will be decided this March.  WT/TPR/M/310/Add.1 
 
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 4.1.2.2 Trade policies 
Page 74, Paragraph 4.22   Question 
 Can Japan please provide a list and brief description of all programs currently provided by the Nippon Export and Investment Insurance agency (NEXI) to assist agricultural exporters; and for 
each of the programs under NEXI, could Japan confirm the following: 
 
- the current maximum tenor length available;  - the current average tenor length;  
- whether any tenors are less than 180 days. 
 RESPONSE 
 
The maximum usance period:   
- Export Credit Insurance - 2 years (We do offer an insurance product for 
transactions with the usance period of  2 years or more, but in practice we 
have had no such case.)  
- Export Bill Insurance - 720 days 
- Export Credit Insurance for SMEs - 180 days. 
 The average tenor length for FY 2012: 
 
- Export Credit Insurance - 43 days - Export Bill Insurance - 62 days 
- Export Credit Insurance for SMEs - 54 days. 
 Australia understands that in 2012, NEXI provided official export financial support for JPY 11,145,639,530 worth of agricultural exports. 
 
Question 
 
Could Japan please provide the following information: 
 
- advise the percentage of total Japanese agricultural exports (in 2013 and 2014) that 
were exported with NEXI-provided financial support (excluding fish products) in 2013 
and 2014; 
- a breakdown by product and by program against the total JPY 11,145,639,500 exports 
provided with NEXI financial support in 2012; and 
- the top 10 export destinations for agricultural products supported by NEXI in 2012. 
RESPONSE 
 
The percentage of total Japanese agricult ural exports in 2013 and 2014 that were 
exported with NEXI-provided financial support:   
- FY 2013 - 2.9% 
Total agricultural exports - JPY 313,058 millio n (source: Ministry of Agriculture, 
Forestry and Fisheries of Japan) 
 NEXI-provided financia l support: JPY 9,121million 
 
- FY 2014 - No data available.  
A breakdown by product and by program: please see Attachment 1. 
 The top 10 export destinations for agricultur al products supported by NEXI: please see 
Attachment 2. WT/TPR/M/310/Add.1 
 
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Attachment 1 
Products （HS code ） Underwritten amont by export of 
agricultural products （Japanese yen ） 
21 Misc. edible preparations 4,228,126,802  
19 Preps. of cereals, fl our, starch or milk 2,264,919,087  
22 Beverages, spirits & vinegar 1,872,546,282  
50 Silk, inc. yarns & woven fabrics thereof 444,656,816  
13 Lac, gums, resins, etc. 385,783,792  
9 Coffee, tea, mate & spices 334,917,727  
12 Milling industry products 282,315,772  
11 Milling industry products 242,190,894  
16 Ed. prep. of meat, fish, crustaceans, etc. 208,172,781  
20 Preps of vegs, fruits, nuts, etc. 193,379,571  
17 Sugars & sugar confectionery 146,678,470  
15 Animal or vegetable fats, oils & waxes 138,230,834  
35 Albuminoidal sub, starches, glues, enzymes 123,638,951  
52 Cotton, inc. yarns & woven fabrics thereof 87,715,457  
8 Ed. fruits & nuts, peel of citrus/melons 63,874,840  
7 Edible vegetables 50,150,644  
10 Cereals 23,371,818  
23 Residues from food industries, animal feed 21,302,443  
4 Dairy, eggs, honey, & ed. products 13,998,560  
18 Cocoa & cocoa preparations 13,282,779  
2 Meat & edible meat offal 5,969,591  
5 Dairy, eggs, honey, & ed. products 415,619  
Total 11,145,639,530  
 
Type of Insurance Underwritten amount by export of 
agricultural products （Japanese  yen） 
Export Credit Insurance 9,815,051,676  
Export Bill Insurance 1,249,134,341  
Export Credit Insurance for SMEs 81,453,513  
Total 11,145,639,530  
 
Attachment 2 
Country Underwritten amont by export of  
agricultural products （Japanese  Yen） 
Hong Kong, China 2,029,074,600 
Australia 1,292,213,417 
Malaysia 1,180,510,447 
Singapore 865,932,010 
Chinese Taipei 764,243,916 
China 737,046,634 
UK 623,221,073 
USA 516,203,736 
Thailand 420,541,154 
Netherlands 368,921,336 
 
Page 74, Paragraph 4.23 
 Question 
 
Can Japan confirm it has a policy of providing food assistance on an untied and cash-basis only? 
 
- If this is the case, how does Japan operate its 'Counterpart Funds' system, whereby 
recipient countries are permitted to monetise in-kind food aid originating from Japan? 
 RESPONSE 
 
In accordance with Article 5 of the Food Assistance Convention, Japan makes an annual 
commitment of food assistance and provides funds for purchasing products. Japan does 
not provide food assistance in-kind.  
 WT/TPR/M/310/Add.1 
 
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 Question 
 
Could Japan advise what percentage of its overseas food assistance was sourced from imports, including Minimum Access rice, in 2014? 
 
RESPONSE  
The ratio of imports sourced from Japan's food assistance, including Minimum Access 
rice in 2013 (Data for 2014 is being compiled) was 2.9%.  4.1.2.3.1 General support programmes 
Page 75, Paragraph 4.30 
 Question 
 Could Japan provide additional information on a ne w direct payment for 'multifunctionality', or a 
'Japanese-style direct payment', due to be introduced from April 2015? 
 
RESPONSE  'Japanese-style direct payment' will be give n a legislative basis by the 'Act on the 
Promotion of Multiple Functions of Agricultur e', which comes into force on April 1 2015. 
Multifunctional Payment, Direct Payment to Farmers in the Hilly and Mountainous Areas 
and Direct Payment for Environmentally Friendly Farming are defined by the Act. 
 
The Multifunctional Payment is a new scheme  introduced in 2014, which replaced the 
Measures to Conserve and Improve Land, Water, and the Environment which had been in 
place since 2007. The new scheme extends suppo rt to basic activities of farmers to 
maintain farmland, irrigation facilities and farm roads.   Question 
 Could Japan provide additional information on the programme, 'Direct Payment for Environmentally Friendly Farming', and explain ho w these direct payments are used to mitigate 
global warming and increase biodiversity?  
 
- Can Japan please provide the definition of 'biodiversity' in the context of this particular 
programme? 
- Is the 'Direct Payment for Environmentally Friendly Farming' programme considered to 
be part of the multi-functionality approach to agricultural assistance in Japan? 
 
RESPONSE 
 'Japanese-style direct payment' will be give n a legislative basis by the 'Act on the 
Promotion of Multiple Functions of Agricultur e', which comes into force on April 1 2015. 
Multifunctional Payment, Direct Payment to Farmers in the Hilly and Mountainous Areas 
and Direct Payment for Environmentally Friendly Farming are defined by the Act. 
 
The Multifunctional Payment is a new scheme  introduced in 2014, which replaced the 
Measures to Conserve and Improve Land, Water, and the Environment which had been in place since 2007. The new scheme extends suppo rt to basic activities of farmers to 
maintain farmland, irrigation facilities and farm roads.  
 4.1.2.3.2 Rice 
Page 75, paragraph 4.35 
 Question 
 Could Japan provide additional information on the 31.3% increase in subsidies paid to farmers for rice for animal feed, effective from April 2014?  WT/TPR/M/310/Add.1 
 
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- How does a subsidy which guarantees incomes for part-time and small-scale rice 
producers promote the consolidation of farmland? 
- How does Japan reconcile this subsidy with efforts to abolish the rice production 
adjustment program?  
 
RESPONSE  
Since April 2014, Japan has introduced the new payment system under which the 
payment per area to farmers increases in prop ortion to the yield per area they achieved. 
That means the payment is not equally increa sed by 31.3% for all farmers. Since large 
scale farmers are generally more motivated to attain high yield per area, the payment is 
considered to benefit such farmers rather  than part-time farmers and small scale 
farmers, and this is expected to le ads to the consolidation of farmland. 
 
The main objective of this subsidy is to en courage famers to shift from production of 
table rice the consumption of which has been  decreasing, to other crops in demand and 
then fully utilizes their paddy fields for the purpose of preserving their 
multifunctionality. In this way, this subs idy reconcile with Japan's policy reform to 
phase out the administrative alloca tion of rice production quota. 
 4.1.2.3.4 Fruits and vegetables 
Page 76, Paragraph 4.37 and Paragraph 4.38 
 Question 
 Could Japan please explain how the insurance scheme under the 'Basic Policy for Fruit Industry Promotion' works to ensure increases in domestic production, consumption and processing of 
domestically produced fruits?  
 Could Japan also please provide information on how the 'market price' for fruit is determined, and at what price market price support payments are triggered for fruit under the 'Basic Policy for Fruit 
Industry Promotion' programme?  
 RESPONSE 
 
Agricultural Insurance Scheme that covers  fruits production under the Basic Policy 
doesn't aim to ensure the increase of pr oduction, consumption and processing of 
domestically produced fruits. It only ai ms to compensate for the loss caused by 
disasters.  The wholesale price of Satsumas and apples ar e used as the market price in this scheme. 
The market price support payments is paid wh en the wholesale price falls below that of 
average year.  
Question 
 
Under the 'Fruits Production Restructuring Plan', could Japan please indicate what type of fruit 
production was shifted to 'profitable fruits or highly valued varieties', what these 'profitable fruits 
or highly valued varieties' were comprised of, and whether the shift away from lower value fruit 
production had any impact on imports to fill the gap caused by loss of production of those particular fruit types? 
 
RESPONSE  
Farmers have been converting their products  from traditional varieties to new one in 
order to respond to the needs of consumers and suppliers. The new varieties include the ones that have good taste, can be traded at  high price, or the ones that suited for 
processing. There is no impact by the conversion  on imports of particular types of fruits.  
 WT/TPR/M/310/Add.1 
 
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 4.2.3.4 Support for fisheries  
Page 88, Table 4.17 Government transfers to fishing, 2005-11  Table 4.17 indicates government transfers to fi shing over the period 2005-11. This includes 
transfers for decommissioning of vessels and licences.  
 Question 
 Could Japan please clarify whether decommissioning of vessels includes scrapping the vessel (that is, permanent removal of the vessel). 
RESPONSE 
 
The financial transfer for decommissioning of  vessels is for the permanent removal of 
vessels. 
 
Question 
 
Is the decommissioned vessel decommissioned from all fishing or is the decommissioning related 
to a particular fishery or fishing licence? 
 
RESPONSE 
 
The fishing covered by the financial transfer  for decommissioning of vessels is the one 
targeting species which need the recovery of  resources by reducing fishing capacity. 
 
4.3.2 Electricity Pages 90-93, 4.88, 4.92, 4.95  
 
Japan has amended its Electricity Business Act to allow for full retail competition which is planned for introduction in 2016.  
Question 
 
Given Japan's electricity sector is dominated by regional electricity utilities, will the amendment 
aim to encourage and increase competition including from small and medium enterprises, and 
foreign companies in the electricity sector?  
RESPONSE 
 The government of Japan aims to promote th e competition in the wholesale and retail 
market through expanding business opportuniti es of new entrants including small and 
medium companies and foreign companie s in the Electricity System Reform. 
 4.4.2 Banking 
Page 95, Box 4.2 Market and regulatory regime for banking 
 Australia notes under the Banking Act that equivalent treatment for foreign banks is subject to 
Prime Ministerial discretion.  
 Question 
 
Could Japan elaborate on the factors that are considered in the Prime Ministerial decision making 
process?  
 
RESPONSE 
 When an application for a Banking license is  filed, the Prime Minister shall examine 
whether the following requirements are satisfied: 
 
1. A person who has filed an application for a Banking license (hereafter "the 
applicant") shall have financial basis to conduct the business of a Bank (a bank WT/TPR/M/310/Add.1 
 
- 13 - 
 
licensed under the Banking Act) soundly and efficiently and shall have good 
prospects for income and expendit ure pertaining to the business; 
2. In light of its personnel structure, th e applicant shall have the knowledge and 
experience to be able to carry out the bu siness of a Bank appropriately, fairly 
and efficiently and shall have sufficient social credibility; and 
3. Where a person whose entire or partia l body of shareholders is a person 
engaged in Banking in a foreign state in accordance with the laws and 
regulations of that foreign state (i ncluding a person who has a special 
relationship therewith as specified by Ca binet Order, but excluding Banks, etc.; 
hereinafter referred to as a "Foreign Bank, etc." in this paragraph) files an 
application for a Banking license, if the Foreign Bank, etc. lawfully holds a 
number of voting rights in the person filing the application for a Banking 
license exceeding the number calculated by  multiplying the voting rights of all 
of that person's shareholders by the rate  specified by Cabinet Office Ordinance, 
the Prime Minister shall examine whether it can be found that Banks are given 
substantially the same treatment as under this Act in the state where the principal business office of the Foreign Bank , etc. is located, in addition to the 
requirements prescribed in the items of the preceding paragraph; provided, 
however, that this shall not apply to the cases where that examination would preclude the faithful fulfilment of an in ternational agreement or any other case 
specified by Cabinet Order (the Ba nking Act, Article 4.2 and 4.3). 
 
In addition, in case of an application fo r a Banking license as a branch, the Prime 
Minister shall take into consid eration the following matters:  
 
1. The applicant shall hold the assets which are above 2 billion JPY and enough to 
conduct the business of the bran ch soundly and efficiently; 
2. The applicant shall be expected to achieve surplus in the branch after three 
consecutive business years af ter beginning a business; 
3. In light of business management syst em and the status of securing the 
representative person and employees in Japan who have the knowledge and 
experience of the business of the branch , the applicant shall be able to carry 
out the business appropriately, fairly an d efficiently, and shall have sufficient 
social credibility; 
4. Particulars and methods of the business of the branch shall be appropriate in 
view of protection of depositors and ma intenance of an orderly credit system 
(Ordinance for Enforcement of the Banking Act, Article 28.2). 
Question 
 
How is treatment for foreign banks affected by a negative determination?  
 
RESPONSE 
 The Banking Act does not set out any rules for the treatment affe cted by a negative 
determination. 
 4.4.4 Securities  
Page 98, Box 4.4 Market and regulatory regime for securities 
 Australia notes that conditions for foreigners buying and selling on the stock market are subject to Prime Ministerial authorization.  
 
Question 
 
Would Japan provide further details on how this authorization requirements operates in practice?  
 RESPONSE 
 
A foreigner may, without any necessity of au thorization, buy and sell on the Japanese 
stock market through Financial Instruments Business Operators. 
 WT/TPR/M/310/Add.1 
 
- 14 - 
 
  
 
 1. The system of "Authorized Transactio n-at-Exchange Operator" allows a Foreign 
Securities Broker to directly (without intermediation of Financial Instruments 
Business Operators) buy and sell on th e Japanese stock market. Relevant 
provisions concerning "Authorized Tran saction-at-Exchange Operator" are as 
follows. 
2. A Foreign Securities Broker may, with  the permission of the Prime Minister, 
engage in sales and purchase of Secu rities and Market Transactions of 
Derivatives on a Financial Instruments Exch ange (hereinafter referred to as the 
"Transaction-at-Exchange Operation") pursuant to Article 60 of the Financial Instruments and Exchange Act. 
3. The authority over the permission is delegated from the Prime Minister to the 
Commissioner of the Fina ncial Services Agency. 
4. The applicant for permission shall desi gnate a Representative Person in Japan 
and satisfy the following requirements: 
 (cf. Article 60-2 and Article 60-3 of the Financial Instruments and Exchange 
Act) 
(a) Being a juridical person of the same  type as a company with board of 
directors; 
(b) Having obtained Registration, etc. in  any state where its head office or 
Transaction-at-Exchange Offices is located; 
(c) Having continuously conducted the bu siness pertaining to the same type 
of transactions as the Transaction-at-Exchange in any of its Transaction-
at-Exchange Offices, for a peri od longer than three years; 
(d) Having been a member of an Establisher of a Foreign Financial 
Instruments Exchange Market of th e state where said Transaction-at-
Exchange Office is located; 
(e) Holding more than 50 million yen of th e stated capital and of Net Assets; 
and 
(f) Having a personnel structure suffi cient to conduct Transaction-at-
Exchange Operation in an appropriate manner, etc. 
5. In addition to the above, the following requirements (g) and (h) must be 
satisfied: 
(g) The Foreign Financial Instruments Regulatory Authority where the head 
office or Transaction-at-Exchange Offi ce of the applicant for permission 
is located has made the assurance on Cooperation in Investigation of 
Foreign Financial Instruments Regulatory Authority; and 
(h) The Establisher of a Foreign Financia l Instruments Exchange Market to 
which the Transaction-at-Exchange Offi ce of the applicant for permission 
is a member and the Financial In struments Exchange in which the 
applicant for permission becomes th e Trading Participant has concluded 
an agreement concerning provision of information. 
 
Question 
 
What percentage of trades are disall owed because authorization is denied?  
 RESPONSE 
 
As stated at Q30, a Foreign Securities Broker  may not directly (without intermediation of 
Financial Instruments Business Operators) bu y and sell on the Japanese stock market 
without the permission for "Authorize d Transaction-at-Exchange Operator". 
 
4.6.1 Maritime transport Page 105, 4.125, 4.126  
 
Japan has extended the scope of its tonnage tax system to include foreign-flagged vessels operated by Japanese shipping firms and their overseas subsidiaries.  
 
Question 
 Will there be consideration for extending this scope to foreign shipping companies or including this 
under other arrangements? WT/TPR/M/310/Add.1 
 
- 15 - 
 
RESPONSE 
 Japan does not have any idea at the moment.  
4.6.2 Air transport 
Page 107, Box 4.7  
Australia welcomes confirmation that Japan allows foreign third party handling for ground handling 
services at Narita Airport, Kansai Airport and Centrair Airport. 
Question 
 
Are there restrictions on foreign service suppliers providing ground handling services at other 
Japanese airports?  
RESPONSE 
 Japan does not have any restrictions on foreign service supplie rs providing ground 
handling services at the government owned airports. 
 Question 
 
Does Japan have commitments in any bilateral or regional trade agreement that reflect this level 
of openness?  
RESPONSE 
 As Japan considers that ground handling serv ices can overlap exercising traffic rights, 
ground handling services are supposed to be  dealt with in bilateral air agreements. 
 Report by Japan – WT/TPR/G/310 
 
4.4 Agricultural Reform 
Page 17, Paragraph 4.18.3, also Page 65 Paragraph 3.154  
Question 
 
Could Japan provide further information on the implementation of its Geographical Indication 
Protection Scheme which is due to commence in June 2015? 
 RESPONSE  
For details of the implementation of the GI Act, Japan has submitted a TBT notification 
as G/TBT/N/JPN/448/Add.1. Summary of draf t Cabinet Order and Ministerial Ordinance 
to implement the GI Act is included in such notification. 
 
Page 17, Paragraph 4.18 4)  
Question 
 
Could Japan please provide additional informatio n on its "FBI" strategies for increasing food 
demand, including any changes to country of origin labelling requirements?  
 
RESPONSE  
Japan formulated the export strategy in 2013 in order to expand export of agriculture, 
forestry and fisheries products and food wh ich are made in Japan ("I" strategy). In 
addition to this 'direct' export strategy, Japan also pursues 'indirect' export expansion 
by 1) increasing the popularity of dish es which are made from Japanese food 
ingredients among chefs around the world (" F" strategy) and 2) promoting Japanese-
style food culture and industries in overseas  markets which are made by Japanese food 
industry ("B" strategy).  WT/TPR/M/310/Add.1 
 
- 16 - 
 
  
 
 * Japan does not intend to make any change s in labelling requirements regarding this 
FBI strategies.  4.6 Services-Related Policies 
Page 18, 4.28 
 Australia notes the removal in October 2014 of two requirements on companies using international 
accounting and disclosure standards. 
 Question 
 
Could Japan provide any further detail on the objectives and commercial benefits of this reform? 
 RESPONSE 
 
[Objectives]  
To increase the number of the companies applying IFRS voluntarily by relaxing 
requirements for voluntary application of IFRS.  [Commercial benefits] 
 
Relaxing requirements for voluntary applicat ion of IFRS is expected to increase the 
number of Japanese companies that apply IFRS on a voluntary basis, and to ensure that 
Japan has a voice in deve lopment process of IFRS. 
 In addition, since relaxing requirements fo r voluntary application of IFRS reduces the 
burden of IPO companies that intend to appl y IFRS from the stage of preparation for the 
listing, it is also useful from the viewpoin t of fostering emerging equity markets. 
 * The Present Policy on the Application of International Financial Reporting Standards 
(IFRS) (June 19, 2013) (extract) 
 4.3 Financial Reform 
Page 16, 4.16 
 Question 
 Can Japan further explain how amendments to the Financial Instruments and Exchange Act on 23 May 2014, promote the use of equity crowdfunding?   
- Can Japan describe the entry requirements of Financial Instruments Business Operators 
which handle equity crowdfunding and the natu re of regulations introduced to prevent 
fraudulent solicitation of investment via the Internet?  
 
RESPONSE  
In order to promote the use of equity crowdfunding, Japan amended the Financial 
Instruments and Exchange Act on 23 May 2014,  which relaxed the entry requirements of 
Financial Instruments Business Operators ha ndling equity crowdfunding under a certain 
amount. Specifically, regarding the Financ ial Instruments Business Operators handling 
equity under a certain amount, the amende d act relaxed the regulation of other 
business, etc. and decreased the minimum ca pital requirements for registration (from 
50 million yen to 10 million yen). To preven t fraudulent behaviour, the amended act 
requires crowdfunding platform operators to  acknowledge the feasibility of the venture 
business's project and to provide informatio n of issuers, etc. appropriately on the 
website. 
 WT/TPR/M/310/Add.1 
 
- 17 - 
 
2. MEXICO 
Preguntas adicionales de México 
 
Informe del Gobierno de Japón 
 4. Políticas Internas del Japón, 4.1 Abenomics (p. 16)  
Con respecto a los "tres vectores" que conforman las políticas Abenomics, ¿Cómo se integra el 
componente ambiental a dichas políticas?   With regard to the "three vectors" that make up  the Abenomics policies, how is the environmental 
component integrated with such policies? 
 RESPONSE 
 
Based on "Japan Revitalizatio n Strategy" which has been formulated as the "three 
vectors" of Abenomics, Japan has already implemented various measures to overcome 
constraints of environment/ energy and introduce renewable energy. 
 
4. Políticas Internas del Japón, 4.1 Abenomics (p. 16)  
¿En este contexto qué nivel del valor del yen buscaría el Gobierno japonés mantener en el corto y 
mediano plazos, y qué medidas se implementa rá para ello, a fin dar certidumbre a los 
inversionistas sobre la estabilidad del valor del yen para una mayor atracción de inversión a 
Japón? 
 In this context what level of yen value is the Japanese government seeking to maintain in the 
short and medium term, and what measures will be implemented to this end, to give certainty to 
investors regarding the stability of the value of the yen for greater investment attraction for Japan?  
RESPONSE 
 Japan has been committed to the agreements on exchange rates in G20 and G7, 
including the commitment to market-determine d exchange rates to reflect underlying 
fundamentals. Abenomics including BOJ's Quan titative and Qualitative Monetary Easing 
does not target exchange rates. 
 
4. Políticas Internas del Japón, 4.6 Nuev as reformas reglamentarias en las zonas 
especiales estratégicas de ámbito nacional (p. 17)  
¿Cómo contribuirán y en qué consistirían las medidas laborales a que refieren? 
 How and what will the labor measures referred to consist of? 
 
RESPONSE  
The approved zone plans of three zones in clude a project to establish Employment 
Consultation Center which provides indi vidual consultation service based on 
"Employment Guidelines" (published in April 2014), in order to support foreign companies and ventures business by clarifyi ng the conditions of employment and work. 
To date, three centers were established at Fukuoka in November 2014, Kansai and 
Tokyo Areas in January 2015.  
4. Políticas Internas del Japón, 4.4 Reforma del sector agrícola (p. 20) 
 Respecto al Plan para la Dinamización de la Agricultura, la Silvicultura, la Pesca y las Comunidades 
locales, ¿Se tiene considerando al Subsidio co mo un componente en dicho Plan? ¿Cuáles son las 
medidas y apoyos para dinamizar la Pesca?, ¿Cuáles son las medidas y apoyos para dinamizar la Pesca? ¿De qué manera se impulsan?  WT/TPR/M/310/Add.1 
 
- 18 - 
 
  
 
 Regarding the Plan to Stimulate Agriculture, Forestry, Fisheries and Local Communities, are 
Subsidies being considered as a component in this plan? What are the measures and supports to boost Fisheries? What are the measures and suppor ts for stimulating Fisheries? How will they be 
promoted? 
 
RESPONSE  
Japan provides various supports including subs idies of realizing the policies listed in the 
Plan to Stimulate Agriculture, Forestry, Fisheries and Local Communities.  For sustainable development of fisheries, with implementing of effective resource 
management, fishing operators make effort fo r cost reduction and profit growth from 
rising value added based on the "seashore revitalization plans" fishing communities 
have voluntary formulated. 
 
For information about the "seashore revitalization plans": http://www.jfa.maff.go.jp/j/ki kaku/wpaper/pdf/2013_jfa_wp.pdf  (page 37) 
 
4.2 Derechos de propieda d intelectual (p. 17-18) 
 ¿Cómo ajustará Japón su política en materia de derechos de propiedad intelectual para hacerla 
consistente con sus principales socios comerciales, en particular con las economías del TPP? 
 How will Japan adjust its policy on intellectual property rights to make it consistent with its major 
trading partners, particularly with TPP economies? 
 RESPONSE 
 
Japan attaches importance to providing for sufficient protection of intellectual 
properties and enforcement of rights thereo f, its FTA/EPA including the TPP Agreement. 
Necessity for adjustment in the domestic IP  system will be decided, upon the outcome 
of respective FTA/EPA negotiations. 
 Informe de la Secretaría 
 1.3 Perspectivas, 1.25 (p. 18-19)  
¿De qué manera se aumentaría la productividad con la no remuneración excepcional de horas 
extras a que refieren? ¿Consideran que dicha medida es compatible con los compromisos internacionales de la OIT?  
How will productivity be increased without the exceptional overtime compensation referred to? Do 
you think that this measure is consistent with ILO international commitments?  
RESPONSE 
 In order to increase labour productivity in  preparation for a population-decline society, 
it is important to improve working environment in such a way that women and the 
elderly can work comfortably and ambitious and capable youths can feel hopeful about 
their future.  
As for the consistency with ILO internationa l commitments, it is difficult to make a 
comment because it is unclear what spec ific "ILO international commitments" the 
question is referring to. 
 
2.16 Foro de Cooperación Económica de  Asia Pacífico (APEC) (Page 9) 
 
¿Qué significa la aplicación de medidas compatibles con las normas de la OMC con un "efecto 
proteccionista significativo"?  What does the implementation of measures in line with WTO rules with a "significant protectionist 
effect" mean? WT/TPR/M/310/Add.1 
 
- 19 - 
 
RESPONSE 
 Japan considers that it means the implem entation of the measures that may be 
consistent with provisions of WTO rules but in reality have a trade-restrictive effect. 
 
2.2.3 Actividades bilaterales del Japón fu era del marco de los acuerdos de libre 
comercio, República de Corea (Page 12) 
 
Respecto a las negociaciones a que refiere, ¿Se tiene prevista la integración del componente ambiental? De ser el caso, ¿De qué manera?  
Regarding the negotiations referred to, is the integration of the environmental component 
planned? If so, how?  
RESPONSE 
 Japan and the Republic of Korea have been  promoting a variety of cooperation on 
environmental issues through various effort s including discussions at the Japan-ROK 
Joint Committee on Environmental Cooperation.  2.4 Otros Acuerdos Regionales y Bilaterales,  2.4.1 Foro de Cooperación Económica de 
Asia y el Pacífico (APEC) (p. 10). 
 ¿De qué manera el Japón ha apoyado a la promoción de los objetivos de crecimiento verde y el 
Desarrollo Sostenible del APEC?  
 How has Japan supported the promotion of APEC's objectives of green growth and sustainable 
development? 
 RESPONSE  
In APEC, Japan proposed to develop a plan of action which enhances trade liberalization, 
facilitation, and cooperation of environmen tal services in 2015, and it was endorsed 
in AMM (APEC Ministerial Meeting) in 2014. 
 
2.4 Régimen de Inversión, 2.22. (p. 25)  
¿En qué consistiría el mejoramiento del sistema de solución de conflictos laborales? 
 What would improve the system of settling labor disputes?  
RESPONSE 
 In 2015 the Government of Japan will conduc t wide-ranging deliberations about what 
the system should be. See page 54 of the PDF document posted in the following URL: 
http://www.kantei.go.jp/jp/singi /keizaisaisei/pdf/honbunEN.pdf  
 
3.28 (p. 36) 
 De acuerdo al párrafo 3.28, en febrero de 2014 Japón inició una investigación antidumping sobre 
el diisocianato de tolueno procedente de Ch ina. ¿Dónde se puede consultar la referida 
investigación antidumping? 
 According to paragraph 3.28, in February 2014 Japan began an antidumping investigation on 
toluene diisocyanate from China. Where can we consult the aforementioned antidumping 
investigation?  
RESPONSE 
 You can consult at either of following offices:  
(1) Tariff Policy and Legal Division of th e Customs and Tariff Bureau, Ministry of WT/TPR/M/310/Add.1 
 
- 20 - 
 
  
 
 Finance ( http://www.mof.go.jp/customs_tari ff/trade/plan/futou/index.html ) (in 
Japanese only) 
 (2) Office for Trade Remedy Investigations  of the Trade Contro l Department of the 
Trade and Economic Cooperation Bureau, Mi nistry of Economy, Trade and Industry 
(http://www.meti.go.jp/policy/external_e conomy/trade_control/boekikanri/trad
e-remedy/izen.html ) (in Japanese only). 
 
3.32 Normas y otras prescripciones técnicas (p. 37)  Respecto a las leyes enlistadas en el cuadro 3.3.  ¿De qué manera las leyes mencionadas aplican el 
Acuerdo de Obstáculos Técnicos al Comercio? 
 Regarding the laws listed in Table 3.3., how do the aforementioned laws apply to the Agreement 
on Technical Barriers to Trade? 
 RESPONSE 
 
When establishing technical regulations, st andards or conformity assessment procedure 
under the laws listed in Table 3.3, in gene ral, Japan uses the relevant international 
standards or the relevant parts of them as a basis for them and submits the draft 
technical regulation and conformity assessmen t procedure to WTO (TBT notification) in 
accordance with TBT Agreement.  
3.33 Normas y otras prescripciones técnicas (p. 37) 
 De acuerdo a las leyes relacionadas con las normas y prescripciones técnicas mencionadas en este 
párrafo. ¿Cuáles de esas leyes están armonizadas con las normas internacionales pertinentes? 
 According to the laws related to standards and technical requirements mentioned in this paragraph, which of these laws are harmonized with the relevant international standards? 
 
RESPONSE  
Technical regulations, standards and confor mity assessment procedures under the laws 
mentioned in paragraph 3.33 are based on re levant international standards wherever 
possible in accordance with TBT Agreement. 
 
3.42 Normas industriales. (p. 40)  ¿En qué consiste el Sistema de marcas JIS? 
 
What does the JIS Mark System consist of?  
RESPONSE 
 JIS Mark system is a product certification system for industrial and mineral products 
based on the Industrial Standardization La w. Certification body accredited by the 
competent minister verifies whether the pr oduct conforms with JIS and whether the 
factory has appropriate qualit y management system. As a re sult of verification, the 
applicant is allowed to put JIS mark on the products. 
 
Please refer to http://www.jisc.go.jp/eng/ji s-mark/pdf/JISpamphlet.pdf  for more 
information. 
 
3.43 Normas industriales (p. 40)  
¿Cuáles son los beneficios de poder utilizar marcas JAS? ¿Cuál es la diferencia entre la marca JAS 
y el sistema de marcas JIS? 
What are the benefits of being able to use JA S marks? What is the difference between the JAS 
brand and the JIS mark system? WT/TPR/M/310/Add.1 
 
- 21 - 
 
RESPONSE 
 The JAS marks indicate the conformity to JAS Standard for quality, production methods, 
etc., which help consumers' or users' choices. 
 
JAS (Japanese Agricultural Standard) is fo r Agricultural Products such as foods, 
beverages other than alcohols, and forestry products, etc. 
 
JIS (Japanese Industrial Standard) is for industrial and mineral products such as 
machinery, electronic and electrical products and chemical products, etc. 
 
3.4 Gráfico de flujo del proceso de elab oración de normas industriales (p. 41) 
 ¿Cuál es el plazo entre la notificación en la Gaceta Oficial y la entrada en vigor de las normas 
industriales? 
 What is the period between notification in the Official Gazette and entry into force of industrial 
standards? 
 RESPONSE  
JIS enters into force concurrently with its notification in the Official Gazette. 
 3.5 Diagrama de flujo de los organismos de elaboración de las normas agrícolas (p. 41) 
 
¿Cuál es el plazo entre la notificación en la Gaceta Oficial y la entrada en vigor de las normas agrícolas? 
 
What is the period between notification in the Official Gazette and entry into force of agricultural standards?  
RESPONSE 
 According to the JAS Law, the enactmen t, amendment or removal of Japanese 
Agricultural Standards shall be carried out by  public notice in the Official Gazette at 
least thirty days in advance to the enforcement date.  
3.51 (p. 43) 
 Se menciona que la Comisión de la Inocuidad de los Alimentos del Japón publica los resultados de las evaluaciones de riesgo para la aplicación de MSF. ¿Dónde se pueden consultar dichos 
resultados? 
 It is mentioned that the Food Safety Commission Japan publishes the results of risk assessments 
for the implementation of SPS. Where can these results be consulted? 
 RESPONSE 
 
Food Safety Commission of Japan, FSCJ, pu blishes such results as risk assessment 
reports on the website. The reports are available at: http://www.fsc.go.jp/hyouka/index.html 
 3.52 (p. 44)  
Se menciona que Japón utiliza solamente aditivos que fueron examinados por la Comisión de 
Inocuidad de los Alimentos. ¿Dónde se pueden consultar los aditivos autorizados?  
It is mentioned that Japan only uses additives examined by the Food Safety Commission. Where 
can the authorized additives be consulted? WT/TPR/M/310/Add.1 
 
- 22 - 
 
  
 
 RESPONSE 
 Basically, Mexico's understanding of authoriz ed food additives is correct. However, there 
are substances that are exempted from th e designation system, including those called 
"existing food additives" and natural flavouri ng agents. Existing food additives refer to 
substances that were already distributed or used on the date of the amendment of the 
Food Sanitation Act of Japan ( 1995) and appear in the List of Existing Food Additives. 
 
Lists of designated additives and exis ting food additives are accessible at: 
http://www.ffcr.or.jp/zaidan/FFCRH OME.nsf/pages/list-desin.add-x  
http://www.ffcr.or.jp/zaidan/FFC RHOME.nsf/pages/list-exst.add  
 
3.54 (p. 44)  
El párrafo 3.54 explica que los alimentos importados  pueden quedar exentos de inspección si ya 
han sido inspeccionados por un organismo inscrito en el registro oficial de Japón por parte del gobierno del país exportador. ¿Dónde se pueden consultar los organismos inspectores registrados? 
 
Paragraph 3.54 explains that imported food may be exempted from inspection if it has already been inspected by an agency registered in the offi cial register of Japan by the government of the 
exporting country. Where can the registered inspection agencies be consulted? 
 
RESPONSE  
The list of Foreign Official Laboratories is published on the website of the Ministry of 
Health, Labour and Welfare. Please refer to the following URL: http://www.mhlw.go.jp/english/ topics/importedfoods/1-10.html  
 
3.89 (p. 52)  El párrafo 3.89 menciona que en 2013 el JCIC otorgó créditos por un monto total de 
2,2061 billones de yenes. ¿Podrían aclarar la cifra? 
 Paragraph 3.89 states that in 2013 the JCIC gr anted loans totaling 2.2061 trillion yen. Can you 
please clarify the figure? 
 RESPONSE 
 
Please see the table below.  
FY2013 Commitments by Purpose of Financing 
Purpose of financing Amount (million yen) 
Export loans 126,293 
Import loans 56,251 
Overseas investment loans 1,671,029 
Untied loans 46,044 
Equity participation 97,400 
Guarantees 209,156 
Total 2,206,174 
3.111 (p. 59) 
 El párrafo 3.111 menciona que en Japón existen diversos programas de apoyo a PYMES. ¿Podrían 
dar algunos ejemplos de las formas de apoyo que se brindan así como el procedimiento que los 
beneficiarios deben seguir para obtenerlo?  
Paragraph 3.111 mentions that there are several programs to support SMEs in Japan. Can you 
give some examples of the methods of support provided as well as the procedure that beneficiaries must follow to receive this? WT/TPR/M/310/Add.1 
 
- 23 - 
 
RESPONSE 
 We explain the details of various subsidies for SMEs in the 2014 White Paper on Small 
and Medium Enterprises in Japan. Specifically , please refer to pp. 596-629 in the Paper. 
(http://www.chusho.meti.go.jp/sme_en glish/whitepaper/whitepaper.html ). 
 
The general scheme for the proc edure is as described below: 
 
                  Application ( ※1)  
 
                  Selection  
 
        Report,      Request for payment （※2） 
                 
                  Review, Payment 
 
 
  
※1 The beneficiaries must submit documents detailing their business plans and an application. 
※2 After completing the project, the beneficiaries must submit a report to the government 
explaining its accounting methodology and economic effectiveness. 
 
3.112 (p. 59)  El párrafo 3.113 menciona que en 2014 Japón comunicó dos subvenciones que tenía intención de 
conceder; una para los sistemas de almacenamiento de energía y otra para los vehículos de pila de 
combustible. ¿Dónde se puede encontrar más información sobre esas subvenciones? ¿Se encuentran actualmente en vigor? 
 
Paragraph 3.113 states that in 2014 Japan reported two subsidies that it intended to grant; one for energy storage systems and one for fuel cell vehicles. Where can we find more information 
about these subsidies? Are they currently in effect? 
 RESPONSE 
The Sustainable Open Innovation Initiative which is a general incorporated association 
is responsible for the "stationary lithium io n storage batteries promotion subsidy." The 
subsidy is currently in effect. URL: https://sii.or.jp/ (Japanese only) 
 
The Next Generation Vehicle Promotion Ce nter which is a general incorporated 
association is responsible for the "clean en ergy vehicle promotion subsidy." The subsidy 
is currently in effect. 
URL: http://www.cev-pc.or.jp/ (Japanese only) 
 
3.15 (p. 61) 
 
El cuadro 3.15 proporciona datos agregados de las empresas propiedad estatal de Japón. Independientemente del citado reporte elaborado por la OCDE en 2014, ¿se publica en Japón 
algún informe periódico sobre las empresas propiedad del Estado? 
 Table 3.15 provides aggregate data from state-ow ned companies in Japan. Independent of this 
report prepared by the OECD in 2014, is a period ic report on state-owned companies published in 
Japan?   RESPONSE 
 
There is no periodic report on state-owned companies published by Government of Japan.   
 
 
Government  
 
 Beneficiary 
 WT/TPR/M/310/Add.1 
 
- 24 - 
 
  
 
 4.1.2.3.1 Programas de ayuda general, 4.30 (p. 85) 
 Respecto del referido Programa, ¿Cuáles son los elementos más importantes a considerar para realizar el pago directo por tener una agricultura respetuosa del medio ambiente?  
 
In respect to the aforementioned program, what are the most important elements in order to be 
considered for direct payment as a result  of environmentally friendly farming? 
 
RESPONSE  The most important elements are farming acti vities that are effective for preventing 
global warming and conserving biodiversity. 
 WT/TPR/M/310/Add.1 
 
- 25 - 
 
3. SWITZERLAND 
Report by the Secretariat 
 
1. Economic Environment 
1.1 Recent economic developments 
 In relation with paras 1.4  and 1.5 of the Secretariat's report, could the Japanese authorities 
please indicate how the Japanese government expects to be able to phase out fiscal stimulus and 
phase in fiscal consolidation in a sufficiently swift manner to achieve a budget surplus in FY 2020 without jeopardizing the economic recovery?   
RESPONSE 
 The government of Japan aims  to achieve both economic revitalization and fiscal 
consolidation. In the light of this, the gove rnment will formulate a concrete plan by the 
summer of 2015 for achieving a primary surplus of the central and local governments by 
FY2020.  
 
2. Trade and investment regime 2.3 Trade agreements and arrangements 2.3.3 Other agreements and arrangements 
 
With respect to paras 2.13  through 2.16 of the Secretariat's report Switzerland would like to 
commend Japan for the extensive coverage of its GSP both in terms of countries and products. We 
also welcome the long validity (10 years) of Japan's GSP scheme. With respect to LDCs, 
Switzerland is pleased to note that for 98% of products, Japan, like Switzerland, grants LDCs DFQF treatment. Could the Japanese authorities please in dicate which products fall out of this coverage 
(i.e., belong to the remaining 2%) and why these products are being excluded? 
 RESPONSE  
Part of the following products are excluded fr om DFQF treatment; rice and rice products, 
fish, sugar, starch, corn for starch and leather products.  
Japan has granted enhanced market access  for more than 97% (nearly 100%) of 
products originating from all LDCs as re quired by the WTO Hong Kong Ministerial 
Declaration in 2005. There are only some ex emption items, taking into account the 
sensitivity for the domestic industry, the sust ainability of exhaustible natural resources 
and the industrial vulnerability.  2.4 Investment regime 
 
In para. 2.22 , the Secretariat's report states that an objective of the revised Japan Revitalization 
Strategy 2014 is to double inward FDI by 2020, in ter alia by accelerating economic partnership 
negotiations (FTAs), BITs, tax agreements etc. Since EPA negotiations are to reduce obstacles to 
the cross-border movement of investments, could the Japanese authorities please indicate which market access obstacles for investments should be reduced for Japan to achieve a doubling of 
inward FDI? Also, could the Japanese authorities please indicate which partner countries Japan is 
considering, in FTA and BIT negotiations, in order to double inward FDI?  RESPONSE 
 
For the prompt improvement of environment for inward FDI, the Council for Promotion of Foreign Direct Investment in Japan is co nsidering to identify priority tasks, which 
include but not limited to, strengthening mult i-language services, cultivating personnel 
with a global outlook.  
In order to tap into the growth of othe r countries, Japan is promoting economic 
partnership as a basis of global economic activities. As of February 2015, Japan has 
15 EPA/FTAs which have entered into force or signed (Singapore, Mexico, Malaysia, 
Chile, Thailand, Indonesia, Brunei Darussal am, ASEAN, Philippines, Switzerland, WT/TPR/M/310/Add.1 
 
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 Viet Nam, India, Peru, Australia and Mongolia ). Japan is simultaneously, strategically 
and swiftly promoting 8 EPA/FTAs negotiatio ns (ASEAN-Japan Comprehensive Economic 
Partnership Agreement (AJCEP), Japan-Canada EPA, Japan-Colombia EPA, the Japan-China-Republic of Korea FTA, Japa n-EU EPA, the Regional Comprehensive 
Economic Partnership (RCEP), the Trans-Pa cific Partnership (TPP) and Japan-Turkey 
EPA). With respect to the Investment Treaties, Japan has concluded with 
33 nations/regions including countries such as Egypt, Turkey, China and Korea, and is 
currently negotiating with a new to concludi ng with 9 countries including Oman, Angola 
and Algeria. In choosing an EPA/FTA negotiat ion partner, Japan comprehensively takes 
into consideration relevant factors includin g the progress of existing negotiations of 
EPA/FTAs, economic and diplomatic viewpoin ts, and the overall situation of a possible 
negotiation partner. Japan expects those EP A/ FTAs and BITs will be conducive to 
increasing inward FDI for the future.   
3. Trade Policies and Practices by Measure 
3.1 Measures directly affecting imports  3.1.4 Tariffs  
3.1.4.1 MFN applied tariff  
 According to section 3.1.4.1  of the Secretariat's report (see para. 3.15  and footnote 11) , 
Japan applies to a small portion of its tariff lines differential duties. Footnote 11 further specifies 
that "a differential duty involves a specific rate charged per kg of imports with the rate varying 
directly with the difference between the standard im port price, set by the authorities, and actual 
import price." Could the Japanese authorities pl ease explain what the criteria are and what 
methodology they use to define the standard import price? 
 RESPONSE 
 
The current tariff system for pork was agreed internationally as the result of the UR negotiations.  
The tariff rate for pork is bound both in sp ecific rate (482 yen/kg: cut meat basis) and 
ad valorem  (4.3%), which is divided by the 'gate price' (import price of 524 yen/kg: cut 
meat basis); the specific rate is applied wh en the import price is lower than the 'gate 
price'; the ad valorem  is applied when the import price is higher than the 'gate price'. 
But some range of the after-tax price of the specific rate could surpass that of the ad 
valorem , if the duty was charged according to th e schedule. To avoid this, Japan decided 
to deduct the specific duty above the 'stand ard import price' (546.53 yen/kg), the after-
tax price of ad valorem  at the gate price. 
 As a result, under the differential duty sy stem, the value of difference between the 
'standard import price' and 'actual import pr ice' is imposed when the import price is 
lower than the gate price; ad valorem  tariff is charged when the import price is above 
the gate price; besides, only specific rate  (482 yen/kg) is charged when the after-tax 
price is lower than the 'standard import price'. 
 3.1.5 Import prohibitions, restrictions, licensing and quotas 
 
Para. 3.26  of the Secretariat's report mentions that unused quota entitlements are non-
transferable and that the government does not re allocate any unused quotas. With regard to the 
low fill-rates for certain dairy products and in particular for the quota for 'skimmed milk powder for 
other purposes', Japan on the occasion of its last TPR maintained that: "Concerning unused 
quotas, a scheme of reallocation has already been  implemented." Could the Japanese authorities 
please explain whether there has been a change in po licy in this regard since the last TPR? If yes, 
what is the reason for this? 
 RESPONSE 
 
Concerning the tariff quota for dairy products, the government reallocates unused quota and has not changed the reallocation scheme since the last TPR. WT/TPR/M/310/Add.1 
 
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3.3 Measures affecting production and trade 
3.3.1 Taxes 3.3.1.1 Income tax   
In para. 3.94 , the Secretariat's report notes that about 80% of taxpayers are in lower tax bands 
and pay a marginal tax rate of 10% or less. Given Japan's very large public debt-to-GDP ratio (about 240%) and a persistently high primary fiscal balance deficit, the tax rate actually paid by a 
very large percentage of taxpayers seems quite lo w. It would therefore seem appropriate for the 
authorities to consider raising somewhat income taxes for individual taxpayers to meet their objective of stabilizing the debt-to-GDP ratio and to reduce the primary fiscal deficit. Could the Japanese authorities please indicate whether there are any plans to raise income tax rates for 
individuals in the coming years as a contribution to the strengthening of Japan's overall fiscal 
position and, if not, why?  
RESPONSE 
 As for income tax, a series of tax reforms, including increase of the minimum taxable 
amount and reduction of the tax rate, ha ve made a structure where most of the 
taxpayers are in lower tax rate brackets.  In order to adjust the balance of tax burden , it would be necessary to review not only 
the tax rates but also the various tax deductio ns in accordance with the socio-economic 
changes.   
3.3.4 Competition policy  
3.3.4.1 Recent developments  
In para. 3.122 , the Secretariat's report states that the Anti-Monopoly Act (AMA) was amended 
in 2013, inter alia , to abolish the hearing procedure of the Japan Fair Trade Commission (JFTC) for 
administrative appeals. Further, para. 3.123  states that the independence of the JFTC is 
maintained under the amended AMA. Could the Japanese authorities please provide more details 
on the AMA amendments and their implicat ions for the independence of the JFTC? 
 RESPONSE 
 
The contents of the AMA amendments are as follows:  
1. To abolish the JFTC's hearing procedure for administrative appeals as well as to 
eliminate the provision which stipulates that the jurisdiction of the first instance over any appeal suit s pertaining to decisions of  the JFTC shall lie in the 
Tokyo High Court. 
2. To introduce a system in which any appe al suits pertaining to cease and desist 
orders, etc. shall be subject to the excl usive jurisdiction of  the Tokyo District 
Court, and a panel of three or five judge s in the Tokyo District Court hears the 
cases for ensuring expertise in the court. 
3. To provide expected recipients of orde rs with an explanation on the content of 
the expected orders and allow them to inspect and photocopy evidence used by 
the JFTC, etc., during the procedure for hearing prior to issuing the order for 
enhancing procedural fairness. 
4. The Enacted Act shall come into force on 1 April 2015.  
The JFTC performs its duty independently without any direction or supervision from 
other agencies. Considering the characterist ics of the JFTC, the abolishment of the 
hearing procedure by the JFTC for administrati ve appeals does not influence on its duty 
as an independent body. WT/TPR/M/310/Add.1 
 
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 3.3.4.2 Exemptions from prohibition of cartels  
 According to Table 3.17  in para. 3.124  of the Secretariat's report, 22 practices under 
16 different laws are currently exempt from th e prohibition of cartels. Could the Japanese 
authorities please elaborate on the reasons for these numerous and sometimes wide ranging 
exemptions? Does Japan intend to reduce these exemptions in the near future?  
RESPONSE 
 1. In Japan, The Antimonopoly Act (AMA) do es not generally apply to particular acts 
of particular field in order to achieve specific policy purposes such as stabilizing SMEs' 
management or securing the convenience of users. 
 2. The policy that the exemption of the AMA should be abolished in principle for 
accelerating fair and free competition in th e Japanese market had been clarified by 
successive Cabinet Decisions since 1994. Base d on these Decisions, the AMA and/or its 
related laws concerning AMA exemptions  were amended 3 times (in 1997, 1999 
and 2000), which include the abolishment of some exemptions and the consolidation of 
the procedures. As a result, the 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 January 2015. 
 
3. The Japan Fair Trade Commission will co ntinue to examine the necessity of the 
exemptions while taking the economic situation into consideration to minimize the exemption.  
 
4 Trade Policies in Selected Sectors 4.1 Agriculture 
4.1.2 Agricultural policies 
4.1.2.3 Domestic support  Para. 4.25  of the Secretariat's report states that most forms of market price support other than 
tariffs have been removed by Japan. Furthermore, administered prices now apply to a limited 
number of products. Could the Japanese authorities please indicate in what way they structure the process of this shift away, already initiated, from trade distorting measures? 
 
RESPONSE  
The Government of Japan has reviewed its ma rket price support policies and introduced 
and expanded direct payments by, for exampl e, abolishing the national food control 
system in 1994, specifying a review of ma rket price support policies and implementing 
income support direct payment programs in  the Basic Law on Food, Agriculture and 
Rural areas in 1999, and implementing Cross- item management stabilization measures 
in 2007. The Japanese-style direct payment including the payment for multifunctionality 
of agriculture was newly introduced as one of  such direct payments. Japan will continue 
to pursue structural reform which fits  the agricultural situation in Japan. 
 WT/TPR/M/310/Add.1 
 
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4. MONGOLIA 
Mongolia is going to conclude the first FTA i.e. Economic Partnership Agreement (EPA) with Japan 
in February 2015. Within this agreement, we believe that the Japanese FDI in Mongolia will be increased. We look forward to the succ essful implementation of the EPA.  
 
Question 
 
Secretariat Report Summary (Page 9) indicates th at Japan's SPS and TBT requirements are often 
stricter than the international standards, and Japan imposes import prohibitions on beef and poultry from various countries.   
Please specify and provide detailed information on the measures Japan is taking and/or planning to 
take to bring these requirements in line with the international standards.   
RESPONSE 
 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 its efforts. 
 WT/TPR/M/310/Add.1 
 
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 5. CHINA 
Part I. Questions based on Report by the Secretariat (WT/TPR/S/310) 
 
1. Economic Environment 
 
Page 11, Para. 1.5  
The report states that "On the fiscal side, the strategy has involved short-term economic stimulus 
combined with medium-term measures aimed at achieving fiscal consolidation. In early 2013, a fiscal package of ¥10.3 trillion (some US$100 billion or about 2% of GDP) was adopted. In December 2013, an extra fiscal stimulant of ¥5. 5 trillion (US$53.4 billion or about 1% of GDP)  was 
approved to mitigate the downside risks to the economy of the consumption tax rate increase from 
5% to 8% applied as of 1 April 2014.".  
Question 1 
 
Please introduce the main source of funding, implementing methods and benefited sectors of the 
two fiscal stimulus package mentioned above. 
 RESPONSE  
FY2012 supplementary budget consists of the following measures: 
 
(i) Promoting reconstruction and disa ster prevention 3.8 trillion yen; 
(ii) Promoting private investment and suppo rt for SMEs etc. 3.1 trillion yen; and, 
(iii) Vitalizing local economy etc. 3.1 trillion yen.  
It is mainly financed by additional bond s issuance, reviewing existing programs, the 
settlement's surplus in FY2011.  FY2013 supplementary budget consists of the following measures: 
 
(i) Promoting innovation etc. for enhanc ing the competitiveness 1.4 trillion yen; 
(ii) Support for women, young people, the elderly and the disabled 0.3 trillion yen; 
(iii) Acceleration of recons truction and disaster prevention 3.1 trillion yen; and, 
(iv) Mitigating negative impacts of consumption tax rate increase to 8% 
0.6 trillion yen. 
 
It is mainly financed by increased tax re venues, reviewing existing programs, and the 
settlement's surplus in FY2012.   
Page 11, Para. 1.5 
 The report states that "Japan also aims to halv e by FY2015 the primary deficit of central and local 
governments as compared to that of FY2010, and to achieve a primary surplus by FY2020. 
Thereafter Japan will seek to reduce the public debt-to-GDP ratio (estimated at about 240% of GDP in 2013).". 
 
Question 2 
 Could Japan please introduce the latest progress of the plan for reducing fiscal deficit? 
 
RESPONSE  
It is expected to achieve the FY2015 target of halving the primary deficit to GDP ratio, 
based on the FY2015 draft budget which was decided by the Cabinet on 14
th January 2015. The Japanese governme nt will formulate a concrete fiscal 
consolidation plan by the summer of 2015 for achieving a primary surplus of the central 
and local governments by FY2020. 
 WT/TPR/M/310/Add.1 
 
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2. Trade and Investment Regime 
 Page 23, para. 2.20  
The report states that "The Act on National Strategic Special Zones of 2013 allows for the 
designation of zones where regulatory reform is expected to 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.". 
 Question 3 
 
Could Japan please introduce the special preferential policies applicable for the National Strategic 
Special Zones?  
RESPONSE 
 The Act on National Strategic Special Zones (NSSZs) of 2013 includes regulatory reforms 
in the areas of medical care, employme nt, education, urban regeneration and 
development, agriculture, and utilization of  historic buildings. The examples are as 
follows: i) accelerated assessment procedur es for advanced medical treatment of 
medicines approved in six Western, which ha ve not yet been approved in Japan, in 
specific hospitals or medical centers, ii)  exceptional measures on regulations on 
numbers of bed for providing high-standard medical care services, iii) establishing 
Employment Consultation Center which provid es individual consultation service based 
on "Employment Guidelines" (published in April 2014), in order to support foreign 
companies and ventures business through clar ifying the conditions of employment and 
work, iv) deregulation on the exclusive use of road for making MICE more attractive and 
promoted, and v) exceptional measures concer ning agricultural production corporations 
so that private companies will enter newly in  agricultural business. In addition to 
regulatory reforms, tax reliefs  and interest subsidies are also introduced in the NSSZs. 
 
Page 24, para. 2.25 
 The report states that "The FY2014 Subsidy Program for Projects Promoting Foreign Direct 
Investment, Site Location and Regional Development in Japan (Project of site location for global 
companies) provides subsidies of up to ¥500 millio n for the costs of survey design, purchasing or 
leasing facilities and equipment for global companies establishing regional headquarters or 
research and development sites in Japan. Seven projects were selected in FY2014. Four projects 
were selected in each year under the equivalent FY2012 and 2013 programmes.".  Question 4 
 Please specify Japan's specific policies for encouraging foreign investors to establish R&D centers and regional headquarters? Will these policies be  implemented mainly by the central government 
or local governments? 
 RESPONSE 
 
Besides the Subsidy Program on Page 22 (para. 2.25), the Government of Japan is offering the following tax incentives and re duction of patent fees under the "Act for 
Promotion of Japan as an Asian Business Center ", in order to attract global enterprises' 
R&D and Regional Headquarters. 
 1. Corporate tax breaks  
20% income deduction for 5 years (This tax incentive will end on 31 March 2015) 
 2. Income tax breaks  
Deferral of taxation upon exercising st ock options granted by overseas parent 
companies to the time of selling the shares  WT/TPR/M/310/Add.1 
 
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 3. Reduction of patent fees 
50 % reduction of examination fees and patent  fees for patent inventions (Applicable 
only to SMEs)  
These policies are implemented main ly by the central government. 
 Question 5 
 Did Japan set up or designate a single agency in charge of the publication of relevant incentives for foreign investment? If any, please specify.  
RESPONSE 
 No, the Government of Japan did not set up or designate such an agency for the purpose 
of publication of incentives. The Japan Exte rnal Trade Organization (JETRO) provides 
information on relevant incentives available to the public on its website As one of its 
services. 
 
Question 6 
 In addition to policies encouraging foreign investors to establish R&D centers and regional 
headquarters, what other preferential policies have been implemented by Japan for foreign 
investors during this review period?  
RESPONSE 
 Under the Abe administration, the government  o f  J a p a n  a i m s  t o  r e d u c e  t h e  e f f e c t i v e  
corporate tax rate and established the Nation al Strategic Special Economic Zones which 
involve impactful regulatory reform s to attract foreign investors. 
 In addition, JETRO provides a one-stop se rvice for establishing a business base and 
starting foreign investors' business in Japa n at the JETRO IBSC (Invest Japan Business 
Support Center).  
Question 7 
 
Has Japan conducted any assessment with respect to  the effects to date of the policies mentioned 
above? 
 RESPONSE  
The Government of Japan conducts the Admini strative Program Review to assess actual 
situation on budget program such as recipient and purpose of use, and the result of the review is issued on the website of each Ministry every year as the Review Sheet 
(Japanese version only). Based on the rule of the Administrative Program Review, the 
Review Sheet of the Subsidy Program stated in  Para. 2.25 is issued on the website of 
METI every year. 
 
2. Trade Policies and Practices by Measure 
 Page 26, para. 3.2 
 
The report states that "Importers, exporters,  manufacturers, warehouse operators, customs 
brokers, and logistics operators are eligible to become AEOs in Japan.". 
 
Question 8 
 
Please introduce the requirements for foreign exporters to apply for the status of AEO and the 
procedure concerned? WT/TPR/M/310/Add.1 
 
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RESPONSE 
 As for the companies exporting goods to Japan from other countries, they are out of the scope of AEO programs in Japan. 
 
Question 9 
 
Presently, how many foreign exporters have been eligible to become AEOs? Is there any Chinese 
company among them?  RESPONSE 
 
As for the companies exporting goods to Japan from other countries, they are out of the scope of AEO programs in Japan. 
 
Question 10 
 
What measures have been taken by Japan to ensu re that exporters from different countries be 
treated equally when applying to become AEOs?  RESPONSE 
 
As for the companies exporting goods to Japan from other countries, they are out of the scope of AEO programs in Japan. 
 
Page 26, para. 3.4  
The report states that "Japan has mutual reco gnition arrangements (MRAs) on AEO programmes 
with Canada, the European Union, the Republic of  Korea, Malaysia, New Zealand, Singapore, and 
the United States."  
Question 11 
 
Is Japan planning to further expand the mutual recognition scope of AEO, especially to expand 
cooperation with developing members in this field? 
 RESPONSE 
 
Japan is continuing efforts to conclude a dditional Mutual Recognition Arrangement of 
AEO Programs in cooperation with other countries, including developing countries, 
through studying their AEO programs an d, where appropriate, supporting the 
introduction of them. 
 Page 26, para. 3.6 
 
The report states that "During the review period , Japan amended some provisions concerning the 
determination of customs value of imported goods in customs-related laws and regulations with 
the aim of improving their clarity particularly for complicated transactions (e.g. conditions of buyer 
and buying commission have been simplified).". 
Question 12 
 
Please specify the new policy of streamlini ng customs valuation of imported goods. 
 RESPONSE 
 
The main components of the amendments are as follows:  
- To clarify the tax requisition in the releva nt provision of laws and regulations in 
responding to the growing comple xity of transaction forms; and WT/TPR/M/310/Add.1 
 
- 34 - 
 
  
 
 - To clarify the requirements to provid e reasonable explanation of value and 
other necessary information on which custom value is calculated. 
- These amendments in the provisions were made not to change the former 
methods of determining customs value in  accordance with the Agreement on 
Implementation of Article VII of the General Agreement on Tariffs and Trade 
1994 but to clarify the regulatory requirements.  
Please see G/VAL/N/1/JPN/2 for more details on the amendments. 
 
Page 31, para. 3.19  The report states that "Japan has not used this gap to raise tariffs during the last few years. 
However, the average bound rate (WTO definition) is  considerably higher for agricultural products 
(15.2%) than for non-agricultural products (3.7%).".  
Question 13 
 
Will Japan further reduce the tariff peaks for agricultural products in the future? 
 
RESPONSE  Whether Japan will further reduce the tariffs on agricultural products will be decided 
based on various factors such as the future  development of the negotiations in DDA. 
 Page 32, para. 3.26 
 
The report states that "Unused quota entitlements  are non-transferable and cannot be carried over 
to the next period. Additionally, the government does not reallocate any unused quotas.". 
 
Question 14 
 The actual completion percentage of import quotas may be affected by the fact that "the 
government does not reallocate any unused quotas ". Is Japan planning to adjust the practice? 
 RESPONSE 
 
As mentioned in 3.24 of the report by the Se cretariat, the products subject to import 
quotas are certain fish products and cont rolled substances listed in the Montreal 
Protocol on Substances that Deplete the Oz one Layer. These two products have each 
reason for not reallocating any unused quotas. As to the former, the government of Japan does not reallocate any used quotas from the viewpoint of ensuring sustainable use of the resources because it is necessary  for Japan to ensure the conservation and 
management of fishery resources in waters adjacent to  Japan. As to the latter, the 
government of Japan does not reallocate any used quotas because the volume of 
imports of controlled substances should be reduced under the obligation of the Montreal 
Protocol. 
 Page 35, para. 3.40 
 
The report states that "The authorities indicate that when international standards do not meet requirements in Japan, domestic standards or technical regulations are needed.".  
Question 15 
 
Please introduce the shares of international standards and unique domestic standards respectively 
in the JIS? 
 RESPONSE 
 
The ratio of JISs which have corresponding international standards and JISs which don't have corresponding international standa rds are 55.3% and 44.7% respectively.  WT/TPR/M/310/Add.1 
 
- 35 - 
 
In addition, among JISs which have corresp onding international standards, 97% of 
them have aligned with international standards.   Question 16 
 According to some companies, in many cases, in spite of the presence of applicable international standards, Japan insisted on adopting domestic standards that are stricter, which constitutes 
technical barriers to trade. Is Japan planning to adopt or make more reference to international 
standards in the JIS?  RESPONSE 
 
As mentioned above, among JISs which have  corresponding international standards, 
9 7 %  o f  t h e m  h a v e  a l r e a d y  a l i g n e d  w i t h  i n ternational standards. Moreover, JIS is 
voluntary standard. 
 Page 36, para. 3.43 
 
The report states that "At present, there are 28 ROCBs, 18 for organic products, and 10 for forestry products. Under the JAS Law, foreign en terprises certifying operators that produce, 
process, and/or distribute agricultural or forestry products in conformity with the JAS may be 
accredited as ROCBs.". 
 Question 17 
 Presently, how many foreign enterprises certifyi ng operators have been identified as ROCBs? 
 
RESPONSE 
 Presently, there are 26 ROCBs, including 16  for organic products, and 10 for forestry 
products. 
 
Question 18 
 
Is Japan planning to increase the number of ROCB s, especially foreign ROCBs? Is Japan planning 
to expand the cooperation with emerging economies in this field?  
RESPONSE 
 Regardless of whether emergi ng economies or not, Japan will continue to accredit 
foreign enterprises as ROCBs in accordance with prescribed procedures when 
applications are submitted by them. 
 Page 38, para. 3.45 
 
The report states that "The METI has designated 23 inspection bodies (as in 2013), of which seven are foreign.". 
Question 19 
 
Is Japan planning to further increase the number of designated foreign inspection bodies, especially to expand the cooperation with emerging economies in this field? 
 
RESPONSE  
Ministry of Economy, Trade and Industry ha s designated the inspection bodies or the 
conformity assessment bodies which meet th e established registration requirement in 
relevant laws and regulations regardless of  whether they are domestic or foreign 
institutions, and will designate the bodies  based on examination results of every 
application.  WT/TPR/M/310/Add.1 
 
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 Page 38, para. 3.51 
 The report states that "Additionally, the authorities state that, regarding food safety issues, the Japanese Food Safety Commission publishes the result of the risk assessments.". 
 
Question 20 
 
In terms of risk assessments, what channels or modes are employed by Food Safety Commission 
of Japan to communicate and cooperate with foreign authorities and NGOs concerned?  RESPONSE 
 
Food Safety Commission of Japan, FSCJ, pub lishes a draft of the risk assessment report 
on the website and accepts comments from  public, including foreign persons and 
organizations, for 30 days.  
 In addition, FSCJ communicates and cooperat es with foreign organizations through 
various activities upon request. 
 Page 39, para. 3.52  
The report states that "Regarding food safety measures, in Japan more than 800 pesticides have 
residues standards and at least 800 food additives are approved for use. According to the authorities, it is very difficult to confirm whether all these substances comply with international 
standards.". 
 Question 21 
 According to some companies, many food safety-r elated technical standards adopted by Japan are 
much stricter than international standards, which constitute technical barriers to trade. Is Japan planning to increase the share of international standards in the JIS? 
 
RESPONSE  
SPS measures of Japan are in general based on relevant international standards, or 
where its measures do not conform to relevant  international standards, it is based on 
scientific risk assessment, in accordance wi th the SPS Agreement. Furthermore, with a 
view to harmonizing with relevant internat ional standards, Japan reviews its measures 
where necessary and will continue to proceed with its efforts.  Page 41, para. 3.62 
 
The report states that "The government of Japan does not have official data on government procurement spending as a percentage of GDP. However, according to an OECD study, in 2011 
Japan spent 15.4% of its GDP on government procurement.". 
 Question 22 
 Please introduce the participation of foreign companies in Japanese government procurement, especially their shares in the total procurement spending.  
RESPONSE 
 Please see page 42, paragraph 3.69 of the Report by the Secretariat (WT/TPR/S/310). 
 
Question 23 
 
Does Japan publish all information concerning government procurement through a designated 
agency or channel?  WT/TPR/M/310/Add.1 
 
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RESPONSE 
 With regard to the covered procurement of  the GPA, all notices of the intended 
procurement are published through the design ated media which is stipulated in the 
Japan's schedule to the GPA. Details are as follows: 
 1 ANNEX 1 ENTITIES: 
 
1. Kanp ō (Available on paper media and at: http://kanpou.npb.go.jp  (accessible free of 
charge for 30 days after the publication of a notice)). 
 
2 ANNEX 2 ENTITIES:  1. Kenp ō; 
2. Shih ō; 
3. Or their equivalents.  
3 ANNEX 3 ENTITIES: 
 1. Kanp ō. 
 
Page 44, para. 3.78  The report states that "The main Orders under the Act are the Export Trade Control Order of 1949 
(last amended in 2014) which sets out the goods and their destinations where the permission or 
approval of METI is required for export, and the Foreign Exchange Order of 1980 (last amended 
in 2013) which sets out the technologies and destinations where permission from METI is required 
for transfer outside Japan. These lists of goods and technologies are updated regularly, as are 
destinations and end-user lists.".  Question 24 
 According to some Chinese companies, during th e recent years, Japan has introduced the CATCH-
ALL system in its export control regime and even  some goods outside the export control list were 
affected under this new system; presently, Japan includes 17 Chinese entities in the export control 
list, and it is difficult for these entities to obtain export licenses, some of which are clearly for civil purposes. Is Japan planning to remove some of  the Chinese entities from the control list? 
 
RESPONSE  The Foreign End User List (FEUL) lists fo reign entities for which concerns over 
involvement in weapons of mass destructio n (WMD) related activities could not be 
eliminated. The FEUL is provided to Japa nese exporters as information for their 
reference for the purpose of enhancing the effe ctiveness of catch-all control. As such, it 
is not an embargo list, and Japanese exporters can export the goods to FEUL-listed 
entities as long as it is evident that the goods will not be used for WMD-related 
purposes. The decision whether or not to delete  the entity from the FEUL is made by the 
Government of Japan, taking into a ccount various relevant information. 
Page 46, para. 3.87 
 The report states that "NEXI was established in 2001 and took over the export insurance 
programmes then run by METI. It was established as  an incorporated administrative agency under 
the Act on General Rules for Incorporated Administrative Agencies, and the Trade and Investment Insurance Act. In conducting its business, NEXI provides trade and investment insurance with the 
objective of breaking-even financially. It offers  several insurance products covering different 
aspects of trade risks as well as investment insurance for Japanese companies.".  
Question 25 
 
Please introduce the main source of funding of the NEXI, government granting or market-based financing? What is the main operation target of NEXI as an administrative institution, commercial WT/TPR/M/310/Add.1 
 
- 38 - 
 
  
 
 interests or government policy of boosting exports and imports? 
 RESPONSE  
- The main source of funding of NEXI's operations is premiums paid by users.  
- NEXI's main operation target is to promote sound development of foreign 
trades or other external transactions. 
 
Question 26 
 Is there any difference between NEXI and private commercial institutions in terms of the premium 
of their insurance products? 
 RESPONSE 
 
The risks and conditions covered by the insurance are different between NEXI and 
private companies. Therefore, we are not able to compare their premiums. 
 
Page 46, para. 3.89  The report states that "Most of JBIC's lending ac tivities are for overseas investment loans – which 
represented about three-quarters of the total operations of ¥2,206.1 billion in FY2013. These 
investments include projects that will deliver raw materials to Japan, projects involving Japanese companies, as well as projects abroad using expo rts from Japan. JBIC also continues to provide 
direct loans for exports (Table 3.9).". 
 Question 27 
 Please introduce the main operation target of th e JBIC with government allocations as the main 
source of funding, commercial interests or government policy of promoting overseas investment?  
RESPONSE 
 As a policy-based financial institution, JBIC  conducts operations for the purpose of 
contributing to the sound development of Japan and the international economy and 
society in the following fields:  
 Promoting the overseas development an d securement of resources which are 
important for Japan 
 Maintaining and improving the internat ional competitiveness of Japanese 
industries 
 Promoting the overseas business having the purpose of preserving the global 
environment, such as preventing global warming 
 Preventing disruptions to international financial order or taking appropriate 
measures with respect to damage s caused by such disruption. 
 
Question 28 
 Is there any difference between JBIC and private commercial institutions in terms of the premium of their investment credit products?  
RESPONSE 
 There are cases where premiums could be  different between JBIC and commercial 
institutions because financial terms are de termined based on each institution's due 
diligence.  
Page 47, para. 3.93  
 The report states that "For FY2013 and 2014, the Ministry of Finance has made or proposed a number of changes to the taxes: … Encouraging investments by corporations through relaxed WT/TPR/M/310/Add.1 
 
- 39 - 
 
capital allowances and tax credits for production facilities, energy-related facilities, and research 
and development spending …".  Question 29 
 Please introduce the specific policies and application requirements regarding subsidies for production facilities, energy-related facilities , and research and development spending and the 
total amount of subsidies concerned. 
 RESPONSE  
 Tax measures for promoting inve stment in green technologies: 
Special depreciation and tax credit for advanced low-carbon and energy-saving 
facilities. 
- Estimated total amount of subsidies for expanding its scope to energy-
saving cogeneration facilities in 2013: around 2 billion yen. 
 
 Tax measures for promoting investment in  facilities to improve productivity:  
Immediate depreciation or a tax credit is  permitted for investment in facilities 
that will contribute to improving productivity. 
- Estimated total amount of subsid ies for introducing the measures 
in 2014: around 299 billion yen. 
 
 Measures for R&D tax credit 
In addition to the tax credit based on total R&D spending, provide a tax credit 
selectively applicable based either on incremental R&D spending or R&D 
spending over 10% of average sales 
- Estimated total amount of subsidies for raising the maximum deductible 
amount of tax credit based on total R&D spending from 20% to 30% of a corporation's corporate income tax liability and add certain joint research to the scope of special ex periments and research expenditures 
in 2013: around 58 billion yen. 
- Estimated total amount of subsidies for reorganization of the 
incremental type measures into a mechanism in which the deductible 
rates for tax credits increase depe nding on rates of increase of 
experiments and research expe nditures (deductible rate: 5% ⇒5～30%) 
in 2014: around 27 billion yen. 
 
Page 49, para. 3.100  
The report states that "In addition, for FY2011-2015 incentives are available for creating 
employment, for FY2013-2017 for increasing wages and, for FY2013-2016, for purchases of machinery and equipment under certain circumstances.". 
 
Question 30 
 
Does Japan release information related with tax incentives via a single designated channel? 
RESPONSE 
 The outlines of annual tax reforms including information related with tax incentives are 
available on the website of the Ministry of Finance. Please refer to the following link. 
http://www.mof.go.jp/english/ta x_policy/tax_reform/index.html  
 
Question 31 
 
Will Japanese local governments provide companies with tax incentive, in addition to central 
government? Through which channels can foreig n companies search relevant information? 
 WT/TPR/M/310/Add.1 
 
- 40 - 
 
  
 
 RESPONSE 
 Some local authorities enact their original local taxation systems from their own policy 
objectives. While each local authority may be  consulted for details, for the sake of 
assisting the understanding of the interested parties, Japan External Trade Organization 
(JETRO) provides information about some of lo cal taxation systems, which is shown in 
this site; https://www.jetro.go.jp/en/invest/region/basic/  
 
Page 50, Para. 3.104  The report states that "In April 2014, the tax was increased from 5% to 8% and the government 
intends to increase it again to 10% in April 2017.". 
 Question 32 
 Has Japan assessed the impact left by consumption tax increase on Japanese domestic consumption, fiscal revenue and inflation rate? 
 
RESPONSE  Private consumption in the second quarter of  2014 turned negative, mainly because of a 
reaction after a rise in last-minute dema nd before the consumption tax increase. 
Although the increase in private consumpt ion in the third quarter remained minor 
despite large negative growth, this was beca use of a decline in consumer sentiment and 
unseasonable summer weather. Private consumpt ion continued to show positive growth 
in the fourth quarter for the second consecutive quarter. The impact of the rise in last-minute demand before the consumption ta x hike and the reaction are estimated at 
around 3 trillion yen, while downward pressu re on private consumption caused by the 
income effect from decreasi ng real income is estimated at around 1 trillion yen, 
according to "Japanese Economy 2014-2015", which was published by the Cabinet Office. Private consumption holds firm, wh ile weakness can be seen in consumer 
sentiment recently. The effect  of the consumer tax increase on pushing up consumer 
prices, in terms of general, excluding fresh food, petroleum products and other specific 
components (referred to as "core core") was estimated at around 2% (Cabinet Office). 
As for tax revenue, the consumption tax revenue in the FY2015 budget is 
17.1 trillion yen, of which an estimated 6.2 trillion yen is attributable to the 
consumption tax hike (4% → 6.3%). At the local tax level, the expected consumption 
tax revenue in FY2015 is 4.6 trillion yen, of wh ich an estimated 1.9 trillion is attributable 
to the consumption tax hike (1% → 1.7%). 
 
Page 53, para. 3.114  
The report states that "At the State level, many of these agencies are incorporated administrative 
agencies. These are agencies established".  
Question 33 
 
What is the operational target of the state-owned enterprises mentioned above, as incorporated administrative agencies, pursuing for commercial profits or achieving targets of government 
policies? 
RESPONSE 
 
The purpose of the operation of Incorporated Administrative Agencies is to effectively 
and efficiently conduct the work that may not always be implemented if they are entrusted to private entities, or that need to  be conducted by single entity alone among 
the works that need to be implemented secu rely from public viewpoint including the 
stability of the lives of the citizen, society and economy, and that does not need to be 
implemented directly by the State itself. 
 WT/TPR/M/310/Add.1 
 
- 41 - 
 
Question 34 
 
Please introduce the overall profitability of Ja panese state-owned enterprises. Does Japanese 
government provide capital injection or subsidies for state-owned-enterprises with deficits? What 
is the amount of spending in this field over the recent years? 
 RESPONSE 
 
Due to the absence of established definition of state-owned enterprises in this context, 
there is no available data on the over all profitability of such enterprises.  
 
For the same reason, the question on 'capital injection or subsidies' are not able to be 
properly addressed.   
Page 57, para. 3.127 
 The report states that "Investigations into possible violations of the AMA may be initiated as a 
result of reports from the general public, detection by the JFTC itself, notifications by the Small- 
and Medium-Enterprise Agency, or re ports by leniency applicants.". 
 Question 35 
 Over the recent years, how many anti-monopoly investigations have been conducted by Japan 
respectively in the four modes mentioned above? 
 
RESPONSE  
The JFTC does not publish any information about the clue of each investigation. 
 Question 36 
 
How many foreign-invested enterprises have received anti-monopoly investigations over the 
recent years?  
RESPONSE 
 The JFTC does not publish the total number of the cases concerning foreign-invested 
enterprises. 
 Page 60, para. 3.130  
The report states that "The Vision notes progress made since the Intellectual Property Basic Act 
was passed in 2003 and outlines the measures that should be taken to continue improvements over the next twenty years around four pillars: … building up a global intellectual property system 
for enhancing industrial competitiveness through continuing cooperative relationships with 
advanced countries and countries with emerging markets so that the Japanese IP system can become a standard … provide support for enhancing intellectual property management by SMEs 
and venture companies by raising awareness of the importance of IP within SMEs and providing 
government support for IP activities and acquisition of rights for their use overseas …".  Question 37 
 How does Japan plan to achieve the main policy goal of "building up a global intellectual property system for enhancing industrial competitiveness"? Based on multilateral negotiation within the 
WTO framework or network of regional & bilateral agreements? 
 RESPONSE 
 
Through bilateral and multilateral agreements  including Free Trade Agreements (FTAs)/ 
Economic Partnership Agreements (EPAs), an d investment agreements, the Government 
of Japan will work to solve international prob lems in the field of intellectual property WT/TPR/M/310/Add.1 
 
- 42 - 
 
  
 
 that hinder the global business operations of  companies, and will make improvements in 
this area.  Question 38 
 Please introduce relevant progress Japan has made in this area.  
RESPONSE 
 In securing market superiority by exclus ively carrying out innovative inventions, 
improving the efficiency of  research and development by eliminating duplicated 
research, and so on, settling patent rights early is an important effort for strengthening 
the competitiveness of Japanese SMEs an d venture companies as well as leading 
companies, which are working on innovati ons by taking advantage of innovative 
technology. 
 The Government of Japan has also strengthen ed support to SMEs from various aspects 
such as providing information on inte llectual property and consultations. 
 Question 39 
 
Please introduce what specific policies Japan has provided for intellectual property-related 
activities of Japanese SMEs.  
RESPONSE 
 There is an expectation that, while rais ing awareness about the importance of 
intellectual property manageme nt among SMEs and venture companies, the Government 
of Japan will provide detailed support for inte llectual property activities according to the 
individual needs of companies, and remove va rious obstacles that hinder the intellectual 
property activities of these companies. Th e Government of Japan will make efforts 
including enhancing incentives for the inte llectual property activities of SMEs and 
venture companies, and establishing a system  that will provide th orough support from 
the acquisition of rights to their utilization overseas . 
 
4. Trade Policies by Sector  
Page 71, para. 4.11 
 The report states that "The review of the current  Plan started in December 2013 and sets out the 
objectives of doubling incomes in agriculture and rural areas over the next ten years by increasing 
demand (both domestic and in export markets), improving value chains, reducing costs, promoting 
structural reform and improving productivity.".  
Question 40 
 
Please introduce Japan's specific measures for increasing demand for agricultural products in both 
domestic and export markets. How does Japan evaluate the effects of these measures? 
 RESPONSE  
Japan has been boosting the demand for ag ricultural products by taking several 
measures - promoting exports by spreadin g Japanese cuisine and Japan's dietary 
culture, developing new domestic markets through collaboration among medical care, 
welfare, and food and agricultural sectors,  and promotion of consuming vegetable for 
processing and/or industrial uses an d local products in school lunches. 
 
Page 72, para. 4.13 
 The report states that "Agricultural policy continues to emphasise self-sufficiency, and the Basic Plan sets self-sufficiency targets for FY2020 of 50% on a calorie basis and 70% on a production 
value basis.". WT/TPR/M/310/Add.1 
 
- 43 - 
 
Question 41 
 
Please introduce the current self-sufficiency of ag ricultural products in Japan. What measures has 
Japan taken to directly promote the self-sufficiency rate in agricultural products? 
 
RESPONSE  
In FY 2013, the food self-suffi ciency ratio in Japan is 39% on a calorie basis and 65% on 
a production value basis. Regarding the main  agricultural products for each item, the 
food self-sufficiency ratios of rice, wh eat, and soybeans are 96%, 12% and 7% 
respectively (on a weight basis). The Japane se government has promoted production of 
the crops in demand such as rice for feed , wheat, soybeans as well as consumption of 
domestic agricultural, forestry, and fishery products in order to improve Japan's food 
self-sufficiency ratio. 
 
Question 42 
 
How will Japan evaluate the influence of such measures as production restriction and stimulation 
on the target of agricultural self-sufficiency?  RESPONSE 
 
It is necessary to promote production of cr ops by taking into account actual demands 
because food self-sufficiency ratio does not improve only by taking measures to promote 
production. Therefore, in order to improv e it, the Japanese government has set the 
forecast of food consumption in the next 10 ye ars as well as the target of production for 
each item in the Basic Plans for Food , Agriculture and Rural Areas so far. 
 
The Japanese government will revise the targ et of food self-sufficiency ratio in the 
4
th Basic Plan for Food, Agriculture and Rura l Areas which will be updated this March, 
based on such evaluation. 
 
Page 72, para. 4.14  
The report states that "The 2009 amendment aims to facilitate the efficient use of land by allowing 
companies to lease farmland. In the first five years following the amendment, 1,576 firms entered 
agriculture". 
 
Question 43 
 According to the latest Agricultural Land Act of 2009, are firms leasing farmland required to utilize 
related land for agricultural production? 
 RESPONSE 
 
Yes, the Agricultural Land Act requires the newly entered firms through leasing farmland 
to use the land appropriately for cultivation. 
Question 44 
 
If the firms are allowed to use relevant land for non-agricultural purposes, will it affect Japan's target of "guaranteeing the self-sufficiency of agri cultural products"? Does Japan have any relevant 
evaluation on or countermeasures for this matter? 
 RESPONSE 
 
If the amount of agricultural land decreases as a result of conversion of agricultural 
land, it would decrease agricultural produc tion, which would reduce Japan's food self-
sufficiency ratio. 
 WT/TPR/M/310/Add.1 
 
- 44 - 
 
  
 
 The government promotes secu ring of excellent farmland and its effective utilization 
through the appropriate use of agricultural  promotion area system and the farmland 
conversion permission system.  
Page 73, para. 4.17 
 The report states that "Furthermore, the standard deviation of 26.5 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 nearly 300%.". 
 Question 45 
 Please introduce which factors the authority will take into consideration when determining sensitive and important agricultural products subject to high-level tariff protection. 
 
RESPONSE  
The significance of the preservation of dome stic production in terms of various reasons 
such as food security, and the high possibility of being affected by the negative effect of 
increase of import due to the vulnerability of production are taken into consideration 
when Japan determines sensitive and impo rtant agricultural products subject to 
high-level tariff protection. 
 Page 73, para. 4.20 
 
The report states that "The method of administer ing the quotas varies from one quota to another, 
although 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).".  Question 46 
 A too complicated quota administration system may cause unnecessary burdens to export enterprises, especially to SMEs. Does Japan plan to further streamline the quota administration 
system in the future? 
 RESPONSE 
 
Japan applies appropriate TRQs consiste nt with the WTO agreement and their 
application is conducted in a fair and transparent manner. 
 
There is no concrete plan to change the current procedure. 
 Page 75, para. 4.29 
 
The report states that "The current Agricultural Insurance Scheme is supported by the government and usually operated by the Agricultural Mutual Relief Associations run by farmers. As a general 
rule, the government contributes about 50% of the premiums.". 
 Question 47 
 
Please introduce the total amount of support provided by the Japanese government to the 
Agricultural Insurance Scheme in recent years.  
RESPONSE 
 The total amount of support in recent years is  shown in Japan's most recent notification 
(G/AG/JPN/191) to the WTO. 
 WT/TPR/M/310/Add.1 
 
- 45 - 
 
Question 48 
 
Please introduce some information about the Agricultural Mutual Relief Association, including the number, general scale, main functions and related legal policy frameworks of these associations. 
 
RESPONSE  
- The number of the Agricultural Mutual Relief Association is 162. 
- Each Association covers several m unicipal areas, and 17 of them cover 
prefectural areas. 
- The Association accepts applications from farmers and receives premiums. 
When a yield loss occurs, the Association  makes an investigation of the yield 
and pays an indemnity for the loss. 
- The Association is founded and mana ged by farmers voluntarily under the 
Agricultural Disaster Compensation Act. 
 Page 76, para. 4.36 
 
The report states that "The income-related payments are provided from a fund to which the government contributes 75% and participating producers 25%.".  
Question 49 
 
Please provide more information of the fund, including its total amount, operation mode, etc. 
 
RESPONSE  
The fund is accumulated by participating producers and the government. The ratio of 
participating producers to the government is one to three. When the income of 
participating producers is reduced, compen sation payments are provided from the 
accumulated fund. The remaining of the a ccumulated fund is carried forward to 
subsequent year. The total amount of the go vernment contribution to this accumulated 
fund is 71.9 billion yen as of April in FY2012.  
Page 77, para. 4.40 
 The report states that "Government policy also affects sales of the processed products. Although 
tobacco products are subject to excise duties, some brands, all owned by Japan Tobacco, are 
subject to lower rates (section 3.3.1.6). Furtherm ore, importers, wholesalers, and retailers of 
cigarettes are required to register with the Minister of Finance who must approve final retail prices.". 
 
Question 50 
 
Please introduce what conditions should the products subject to low-level special tobacco tax 
meet. How will Japan ensure that relevant policies is consistent with the national treatment principle? 
 
RESPONSE  A preferential tax rate for tobacco applies to  six brands: Wakaba, Echo, Shinsei, Golden 
Bat, Uruma and Violet. These brands had been classified as "third class cigarette" under 
the fiscal monopoly on tobacco abolished in 1985.  
The cabinet has decided to propose to phas e 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. WT/TPR/M/310/Add.1 
 
- 46 - 
 
  
 
 Question 51 
 
What factors will the Ministry of Finance take into consideration when confirming the wholesale and retail prices of tobacco? 
 
RESPONSE  
Japan takes into consideration whether or no t retail prices are unfairly prejudicial to 
consumers through unduly high or low price.  Page 80, para. 4.53 
 
The report states that "Although both PSE and the Total Support Estimate (TSE) were lower in 2013 than their peak level in the mid-1990s they are still high relative to other OECD countries. 
Furthermore, market access measures, such as high tariffs, and production restraints on some 
products mean farm prices are more than twice border prices as measured by the Producer Nominal Protection Coefficient (Producer NPC).". 
 
Question 52 
 Does Japan plan to properly reduce its high su bsidies for agricultural products in the future? 
 
RESPONSE  
Taking into account the result of the Urug uay Round negotiations, the Government of 
Japan has reviewed its market price support  policies and introduced and expanded the 
direct payments system. The Japanese-style  direct payment including the payment for 
multifunctionality of agriculture was newly in troduced as one of such direct payments. 
Japan will continue to pursue structural refo rm which fits the agricultural situation in 
Japan, in accordance with the WTO Agreement on Agriculture.  
Page 80, para. 4.54 
 The report states that "Single commodity transfer s (SCTs) make up most of the support provided 
to agriculture and the rates of support vary considerably from one product to another but overall 
represent more than half of gross farm receipts (which includes the value of farm production plus non-market-price support payments).". 
 
Question 53 
 Please introduce what factors the Japanese authority will take into consideration when determining 
subsidy standards for different agricultural products. 
 RESPONSE 
 
To determine subsidy standards, Japanese  authority takes into consideration the 
condition of each product such as mark et price, production cost and local 
characteristics. 
 Page 93, para. 4.96  
The report states that "The finance and insurance sector contributed ¥22,854 billion, or 4.9%, to 
GDP in 2011. This represented a decline in both absolute and relative terms compared to 2005 
when the sector contributed ¥30,789 billion, or 6.1%m to GDP.". 
 
Question 54 
 
Please provide the latest data on annual output of Japanese financial services. 
 WT/TPR/M/310/Add.1 
 
- 47 - 
 
RESPONSE 
 According to the latest statistics provided by Economic and Social Research Institute, 
Cabinet Office, Government of Japan, the finance and insurance sector contributed 
¥21,514 billion, or 4.5% to GDP in 2013. 
(Source) http://www.esri.cao.go.jp/en/sna/data/k akuhou/files/2013/tabl es/25fcm3n_en.xls  
 
Question 55 
 What are the main reasons for the decline of Japanese financial service output compared with the 
year 2005? 
 RESPONSE 
 
The output of finance and insurance sector  dropped significantly after the global 
financial crisis and has not re covered to the former level. 
 
Page 93, para. 4.97  The report states that "The financial sector is relatively concentrated: the top three banks have a 
market share of over 41%, the top three life in surance companies with nearly 52%, and the top 
three non-life insurance with 65% of their respective markets.".  
Question 56 
 
How does Japan evaluate the influence of the financial sector concentration on its financial risk 
administration? 
 RESPONSE  
In the G20, the FSB and international standard -setting bodies, we have been discussing 
the global financial regulatory reforms to bu ild more resilient financial institutions and 
address the too-big-to-fail issue. Japan ha s been implementing the internationally 
agreed reforms steadily. Therefore, Japan does not have any concerns about the current 
situation from a perspective of financial risk administration. 
 
Page 95, para. 4.103 
 The report states that "Through supervisory guidelines and related measures, the FSA revised the minimum capital requirements for internationally-active banks and, according to the authorities, 
intends to introduce liquidity standards (Liquidi ty Coverage Ratio (LCR) and Net Stable Funding 
Ratio (NSFR)), and capital buffers in accordance with Basel III (Box 4.2).".  
Question 57 
 
What is the latest information about Japan's introduction of LCR and NSFR? 
 
RESPONSE  The FSA has already revised the minimum capital requirement for internationally active 
banks in line with Basel III agreement. In ad dition, the FSA finalized the requirement of 
LCR for internationally active banks in Octo ber 2014, and this requirement will become 
effective in March 2015. The requirement of ca pital buffers and NSFR will be finalized in 
line with Basel III agreement. 
 WT/TPR/M/310/Add.1 
 
- 48 - 
 
  
 
 Part II. Questions based on Policy Statement by Japan (WT/TPR/G/310) 
 
Page 14, para. 4.2  
The statement states that "The most important issues are to further promote such positive 
movement, realize a virtuous cycle of the economy and achieve economic revitalization and fiscal consolidation simultaneously.". 
 
Question 58 
 Please introduce how Japan plans to realize the target of fiscal consolidation while implementing 
expansive and "more flexible" financial policies? 
 RESPONSE 
 
The government of Japan aims  to achieve both economic revitalization and fiscal 
consolidation. In the light of this, the gove rnment will formulate a concrete plan by the 
summer of 2015 for achieving a primary surplus of the central and local governments 
by FY2020.  Page 14, para. 4.2 
 
The statement states that "Attracting foreign visitors to Japan is an important key to supporting domestic demand. The government will continue to take measures such as further deregulation of 
visa requirements.". 
 Question 59 
 Please introduce the latest progress of the plan.  RESPONSE 
Since July 2013, Japan has been taking measures on relaxation of visa requirements as follows: 
 
Starting date of 
implementation Country Previous 
measures Relaxation of visa requirements 
1/7/2013 Thailand Multiple-entry visa 
(permitted length of 
stay: 90 days) Visa waiver for e-passport holders (permitted length 
of stay: 15 days) 
Malaysia Multiple-entry visa 
(90 days) Visa waiver for e-passport holders (90 days) 
Viet Nam Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
Philippines Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
Indonesia Multiple-entry visa 
(15 days) Multiple-entry visa (Extension of permitted length of 
stay to 30 days) 
15/10/2013 UAE Single-entry visa 
(90 days) Multiple-entry visa (90 days) 
18/11/2013 Cambodia Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
Laos Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
25/11/2013 PNG Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
15/1/2014 Myanmar Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
3/7/2014 India Single-entry visa 
(90 days) Multiple-entry visa (15 days) 
30/9/2014 Indonesia, 
Philippines and 
Viet Nam Multiple-entry visa 
(30 days, 15 days, 
15 days) Multiple-entry visa (30 days) 
- Relaxation of visa requirements 
- Extension of period of validity for up to 5 years  
20/11/2014 Indonesia, 
Philippines and Viet Nam Single-entry visa 
(90 days) Single-entry tourism visa (15 days) 
- Simplified application procedure for participants of 
package tour handled by registered travel agencies WT/TPR/M/310/Add.1 
 
- 49 - 
 
Starting date of 
implementation Country Previous 
measures Relaxation of visa requirements 
1/12/2014 Indonesia Multiple-entry visa 
(30 days) Visa waiver for e-passport holders (15 days) 
- Visa waiver for those who registered their e-
passports to diplomatic missions of Japan in 
Indonesia 
19/1/2015 China Multiple-entry visa 
(90 days) Multiple-entry visa with a short-term business 
purpose, and for cultural or intellectual figures (90 days) - Relaxation of application requirements  Multiple entry-visa for visiting Okinawa or one of the three prefectures in Tohoku (30 days) - Relaxation of financial requirements  Multiple-entry visa for individuals with substantially 
high incomes (90 days, valid for 5 years) 
- New visa without requirement of visiting any 
specific destination 
 
FOLLOW-UP QUESTIONS FROM CHINA 
Part I. Questions based on Report by the Secretariat (WT/TPR/S/310) 
 
5. Economic Environment 
 Page 11, para 1.3 
 
The report states that "On 4 April 2013, BOJ introduced "Quantitative and Qualitative Monetary Easing" which included increasing the monetary base by some ¥60-70 trillion per year mainly 
through the purchase of Japanese government bonds. As a result, BOJ has now become the single 
biggest holder of Japanese government bonds (JGBs) underscoring the scale of its monetary easing programme. On 31 October 2014, BOJ announced it will expand the monetary base each year by some ¥80 trillion (from ¥60-70 trillion) in  a further effort to achieve the 2% inflation 
target.". 
 Question 1 
 How does Japan evaluate the boosting role and spillover effects of the quantitative monetary 
easing policy on its economy? 
 
RESPONSE  QQE, which was introduced in April 2014, has been producing the intended effects so 
far. Namely, Japan's economy has continued to  recover moderately as a trend, with a 
virtuous cycle from income to spending stea dily operating in both the corporate sector 
and the household sector. Corporate profits have  been improving significantly, and, as a 
whole, have maintained a favorable level ar ound the peak before the global financial 
crisis. On the back of those, firms have become active on making business fixed 
investment and on employme nt. The active job openings-to-applicants ratio was 
1.14 times in January 2015, marking the highest level in 23 years -- that is, since 1992 -
- and the unemployment rate has declined to around 3.6%, which is roughly the same level as the structural unemplo yment rate. Reflecting such tightening in labor market 
conditions, wages have been increasing moderately. In the meantime, financial 
conditions are accommodative. Firms' funding costs have been hovering at low levels. 
Firms have continued to see financial instit utions' lending attitudes as being on an 
improving trend. Financial institutions' loan s have grown moderately, including those to 
small and medium-sized firms. 
 Question 2 
 How effective is the large-scale quantitative and qualitative monetary easing policy implemented by BOJ? Is the inflation target of 2% expected to be achieved as scheduled? Is it possible that 
Japan will further intensify its effort to implemen t the quantitative monetary easing policy in the 
future?  WT/TPR/M/310/Add.1 
 
- 50 - 
 
  
 
 RESPONSE 
 QQE, which was introduced in April 2014, has been producing the intended effects so far. The year-on-year rate of increase in consumer prices, which had been minus before 
introduction of QQE, turned into plus and was around 1.25% until last fall. Due to the 
decline in energy prices, it has been slow ing and has been around 0.5% since last 
October. However, the underlying price develo pments have continued to improve. Given 
that the crude oil price will increase moderate ly from the current level, the year-on-year 
rate of increase in consumer prices is likely to accelerate gradually as the effect of the 
decline in the crude oil price dissipates, and it  is likely to reach arou nd 2% in or around 
fiscal year 2015. The Bank of Japan will make  adjustments as necessary to achieve the 
price stability target at the earliest possible,  if there are changes in the underlying trend 
in inflation.  
Question 3 
 
How does Japan evaluate the effects of its monetary policy on capital flow in the whole world, 
especially in Asia?  
 RESPONSE  
The relationship between unconventional mone tary policy and cross-border capital flows 
is quite complicated. Almost all base mone y provided through monetary policy will be 
accumulated in the form of deposits with  a central bank. Even if a country eases 
monetary conditions, this does not necessarily  mean that money being provided directly 
"spills over overseas." Starting from su ch accumulated base money and changes in 
demand-supply conditions in asset markets in which the Bank conducts purchase 
operation, the issue is with regard to how financial market participants' expectations 
and transactions will change and how that will affect cross-border capital flows. This 
process is fairly complicated, and monetary easing does not necessarily lead to cross-
border capital outflows. 
 
Page 11, para. 1.4  
The report states that "In early 2013, a fiscal package of ¥10.3 trillion (some US$100 billion or 
about 2% of GDP) was adopted. In December 2013, an extra fiscal stimulant of ¥5.5 trillion (US$53.4 billion or about 1% of GDP)  was approved to mitigate the downside risks to the economy 
of the consumption tax rate increase from 5% to 8% applied as of 1 April 2014. This was the first 
increase in the consumption tax in 17 years and the first step in a two-stage boost that is set to take the tax rate to 10% in April 2017.".  
Question 4 
 
Japanese economy demonstrated consecutive negative growth in the 2nd and 3rd quarters 
of 2014. As a result, Japanese government put off the second-round increase in consumption tax 
from April 2015 to October 2017. On the other hand, Japan's government debt ranked the first in the world, therefore the fiscal consolidation is very important to maintain confidence among 
consumers. We would like to know how the Ja panese government plans to achieve balance 
between fiscal consolidation and economic growth.  RESPONSE 
 
The Japan's fiscal situation is extremely severe as public debt has cumulatively 
increased. In this situation, the government aims to achieve both economic 
revitalization and fiscal consolidation in orde r to secure the trust from markets and the 
international community.  
In the light of this, the government will fo rmulate a concrete plan by the summer of 
2015 for achieving a primary surplus of the central and local governments by FY2020. WT/TPR/M/310/Add.1 
 
- 51 - 
 
Page 13, para. 1.9 
 The report states that "This decline is mainly the consequence of the trade deficits recorded since 2011, the longest period since comparable records began in the 1970s.". 
 
Question 5 
 
Japan has experienced trade deficits for the 4th consecutive year since 2011 and the situation 
tends to get worse. How does the Japanese government evaluate the trend of its current account balance in the future?  
 
RESPONSE 
 Current account turned negative in some months after 2014, the surplus recorded the 
smallest in the past in 2014. Trade defici t was the worst because of increasing the 
import of mineral fuels by the Great Japan Ea rth Quake and import amount increasing by 
the last minutes demand before consumpt ion tax hike. Meanwh ile, primary income 
recorded highest surplus due to the depreciation of the Japanese yen and expanding 
local production base in 2014. Visitors from  overseas reached over 13 millions. Current 
account moved in part with Japanese Econ omy and its structural change. Concerning 
prospects, the current account surplus may increase as the world economy moderately 
recovers. 
 Page 14, para. 1.11 
 
The report states that "The appreciation in the exchange rate of the yen against major currencies up to 2012 eroded somewhat the international competitiveness of Japanese exports. In 2013, 
exports rose by 9.5% to ¥69.77 trillion, their first increase in three years, but in U.S. dollar terms 
that represented a decline of 10.5% (US$715.1 billi on) given the significant depreciation of the 
yen against the U.S. dollar.".  
Question 6 
 
The report of the Secretariat states that the appr eciation in the exchange rate of the yen against 
major currencies in 2012 eroded somewhat the international competitiveness of Japanese exports. 
How does Japan evaluate the effects of the significant depreciation of the yen since 2013 on the competitiveness of Japanese exports?  
 
RESPONSE  While exchange rate moved toward the dire ction of yen depreciation after 2012 autumn, 
export volume stayed flat after 2013 autumn, which wa s different movement from 
previous situation in yen-depreciation direction movement term. The reasons why 
export volume stayed flat while exchange rate moved toward yen depreciation were as 
follows; while exchange rate moved toward th e direction of yen appreciation, production 
base of manufacturing sector went abroad rapidly. Slowing down in the developing 
countries and material countries. Firms change d the way how to set price, such as firms 
did not price down so much in local currency although in the movement of the direction 
of yen depreciation and put weight on  profit more than export volume. 
 Page 14, para. 1.23 
 
The report states that "Japan aims to achieve strong and sustainable growth in the future by encouraging private investment, increasing productivity, and enhancing competitiveness. 
Structural reforms are thus envisaged in areas such as agriculture, energy, and healthcare.". 
 Question 7 
 What structural reform measures has Japan taken or will take? How effective are such measures?  
 WT/TPR/M/310/Add.1 
 
- 52 - 
 
  
 
 RESPONSE 
 Please refer to the following pages. http://japan.kantei.go.jp/ong oingtopics/abenomics.html  
http://www.kantei.go.jp/jp/singi/kei zaisaisei/pdf/seika02shousaiEN.pdf  
 
3. Trade Policies and Practices by Measure 
 
Page 26, para. 3.2  The report states that "Japan Customs introduced the Authorized Economic Operator (AEO) 
programme in March 2006 and subsequently developed it to simplify customs procedures and 
facilitate legitimate trade. Importers, export ers, manufacturers, warehouse operators, customs 
brokers, and logistics operators are eligible to become AEOs in Japan.". 
 
Question 8 
 
Is there any difference in preferential treatments for different types of AEOs?  
 RESPONSE  
Japan provides each AEO with  specific customs procedures according to the type of 
AEOs stipulated in the customs laws and regulations as benefits for AEOs. 
 
Page 27, para. 3.8 
 The report states that "An advance ruling, which is issued in writing by Customs upon written 
request of an applicant, is binding on such Custom s in respect of the applicant that sought it. An 
applicant includes not only importers but also other relevant parties. Information in writing on advance rulings are made available through the internet on the website of Japan Customs.".  
Question 9 
 
Please describe the competent customs authorities responsible for dealing with the advance ruling 
applications and making relevant decisions. Is the advance ruling applied across Japan? 
 RESPONSE 
 
Each Regional Customs is responsible fo r issuing advance rulings. Issued advance 
rulings are valid across Japan.  
Question 10 
 
Are the competent Japanese authorities entitled to cancel or modify the decisions of advance 
ruling? Is this kind of cancellation or modifications retrospective or not? If the advance ruling is 
cancelled due to "Internal error of Japanese Customs", are the applicants who have already engaged in business activities based on their trust in the Japanese government entitled to claim 
for compensation?  
 RESPONSE  
It is possible for the Government of Japan to cancel or modify issued advance rulings. In 
rare cases of cancellation or modificati on undertaken due to misinterpretation by 
customs officers, importers, who would suff er an unreasonable loss by the original 
advance rulings, are entitled to claim for a refund in regard to their misguided 
declaration.  
Page 35, para 3.39 
 The report states that "Between April 2013 and March 2014, 103 JAS were revised, 14 were withdrawn, and 1 was newly established. As at 31 March 2014, there were 201 JAS in force (the WT/TPR/M/310/Add.1 
 
- 53 - 
 
same as in 2011) , and the number of JAS with corresponding international standards was 77 as at 
the end of March 2014.".  Question 11 
 Please indicate which international organizations have seen their standards adopted in "Japanese Agricultural Standard" (JAS) field. 
 
RESPONSE  Where a JAS standard as set forth, trends in international standardization shall be 
considered. For example, 'Codex standard s' and 'ISO standards' are taken into 
consideration for 'food and beverages' and 'forestry products' respectively. 
 
Page 39, para. 3.52 
 The report states that "Regarding food safety measures, in Japan more than 800 pesticides have 
residues standards and at least 800 food additives are approved for use. According to the 
authorities, it is very difficult to confirm whether all these substances comply with international standards. While Codex standards are considered in MHLW's risk management, only additives that have been reviewed by the Food Safety Commissi on and approved by MHLW may be used in food 
and beverages sold in Japan. This approach is co mmonly applied not only for food additives but in 
the setting of all types of food standards.".  
Question 12 
 
Please explain why "Japan cannot determine whether food additives comply with international 
standards or not"?  
 RESPONSE  
Japan aligns its compositional specifications  and use standards for food additives and 
residue standards for agricultural chemicals with Codex standards whenever possible.  
 
H o w e v e r ,  i t  i s  p r a c t i c a l l y  v e r y  d i f f i c u l t  t o  c o n f i r m  w h e t h e r  a s  m a n y  a s  m o r e  t h a n  
800 food additives permitted for use are aligne d with Codex standards. This is because 
various standards are set for individual substances, including use standards and 
compositional specifications.  
 Question 13 
 
Please clarify whether all food standards shall be required to get approval from the Food Safety 
Commission and MHLW?  
RESPONSE 
 The Food Safety Basic Act requires the Minist ry of Health, Labour and Welfare to request 
the Food Safety Commission to carry out safety assessment of corresponding matters 
when specifications and standards for food (excluding matters on food labelling) are 
newly established or amended. Based on th e assessment results, the MHLW will review 
whether the establishment or amendment of them is adequate. 
 
Page 41, para. 3.60  The report states that "During the review period, some changes were made to Japan's legal 
framework basically to preclude certain parties fr om participating in open tendering: (i) a party 
who is prescribed in Article 32, item 1 of the Ac t to Prevent Unjust Acts by Organized Crime Group 
Members; (ii) parties who intentionally executed construction work, production or other services 
with poor workmanship, and/or intentionally overcharge by a false report for contracts where the 
amount to be paid was decided after the contract.". WT/TPR/M/310/Add.1 
 
- 54 - 
 
  
 
 Question 14 
 
Which authorities make the decisions on the exclusion of two kinds of entities from participation in the public tendering of the Japanese government? Which authorities are responsible for identifying 
enterprises "executing construction work intentionally with poor workmanship or "making a false 
report on contract price"? What are the detailed standards for identification?   
RESPONSE 
 The Metropolitan Police Department and Prefectural Police determine or grasp the 
parties prescribed in Article 32, item 1 of the Act to Prevent Unjust Acts by Organized 
Crime Group Members, and contract officers, etc., in the covered entities preclude the 
parties from participating in open tendering procedures. Contract officers, etc., in the 
covered entities, who found unjust acts by cert ain persons as prescribed in Article 71 of 
the Cabinet Order on Budget, Settlement of Accounts, and Accounting, make decisions 
on excluding the parties from particip ating in open tendering procedures.  
 
In the latter case, the contract officers, et c. make decisions based on the provisions 
prescribed in the following paragraphs of  Article 71, the Cabinet Order on Budget, 
Settlement of Accounts, and Accounting.   
Article 71. If a contract officer, etc., determ ines that a person who wishes to participate 
in an open tendering procedures falls under any of the following categories, the Contract 
Officer, etc., may prevent the person from pa rticipating in open te ndering procedures for 
a period of not more than three years. The same applies to the proxies, managers, and 
employers of such a person.  
(i) person who has intentionally carri ed out construction, manufacturing 
or other services in a careless manner or  acted fraudulently with regard to 
the quality or volume of an object in  the course of performing a contract; 
 
(vi) person who has intent ionally overcharged based on a false report under the 
circumstances where, by a requirem ent of the contract, the amount 
of payment is designed to be determined  after the conclusion of the contract.  
 
Page 42, para. 3.67  
The report states that "In June 2013, Japan eliminated its goal of covering 50% of domestic 
demand for wood with domestic supply. It currently does not have a wood self-sufficiency rate as a 
policy objective".  
Question 15 
 
Regarding government procurement, please indicate Japan's requirements for purchase of 
domestic raw materials or the objective for localization rate, if any, except the objective for wood 
self-sufficiency rate cancelled during this review period.   
RESPONSE 
 Japan doesn't have any requirements for pu rchase of domestic raw materials or the 
objective for localization rate rega rding its government procurement. 
 
Page 45, para. 3.79  
The report states that "Japan maintains export controls for security, conservation, and 
humanitarian reasons, including international commitments such as CITES and Chemical Weapons Convention (CWC) as well as Japan's participation in non-binding arrangements …". 
 
Question 16 
 As for the export controls imposed by Japan due to security reasons and conservation reasons, 
what's the difference in terms of the implementing methods?  WT/TPR/M/310/Add.1 
 
- 55 - 
 
RESPONSE 
 Exporters are required to obtain export lic enses from METI before exportations and 
there is no difference in terms of their procedures. 
 
Question 17 
 
What's the difference between the export contro ls implemented by Japan under FTAs and its 
general export controls?   RESPONSE 
 
Japan conducts export controls under the Foreign Exchange and Foreign Trade Control Act in order to implement in ternational agreements includ ing treaties which require 
trade the restriction measures. Those expo rt controls are not affected by FTAs. 
 Question 18 
 Please introduce the Japanese authority in charge of issuing import certification documents. What 
measures does Japan take to track and guarantee the domestic end users and end uses?   
RESPONSE 
 The Japanese authority in charge of issuin g import approval certificates based on 
Foreign Exchange and Foreign Trade Act is the Ministry of Economy, Trade and Industry 
(METI). METI confirms the domestic end user s and end uses by requiring submission of 
the documents which certify that the applicat ion is in accordance with rules such as 
international treaties. 
 Page 46, para. 3.87  
The report states that "NEXI was established in 2001 and took over the export insurance 
programmes then run by METI. It was established as  an incorporated administrative agency under 
the Act on General Rules for Incorporated Administrative Agencies, and the Trade and Investment 
Insurance Act. In conducting its business, NEXI provides trade and investment insurance with the 
objective of breaking-even financially. It offers  several insurance products covering different 
aspects of trade risks as well as investment insurance for Japanese companies.". 
 
Question 19 
 Please describe the profit situation of NEXI during this review period. Has the company achieved 
break-even in its operation? As Japan is now striving to reduce financial deficit, will the 
government's support to the NEXI and JBIC be affected in the future?   
RESPONSE 
 NEXI's gross profit is as follows. NEXI's a ccounts are balanced in the long-term. NEXI's 
operations are funded by its own prem ium income and NEXI does not receive 
government subsidies.   
FY Gross profit 
(million yen) 
2012 20,426 
2013 15,432 
 
Considering the fiscal situation, the govern ment will continue to provide appropriate 
support for JBIC.  WT/TPR/M/310/Add.1 
 
- 56 - 
 
  
 
 Question 20 
 
Information available to China indicates that the claims paid by NEXI have demonstrated a significant upward trend while its total insurance business turnover has showed no significant 
change in recent years. Please describe the reasons.  
 RESPONSE 
 
NEXI claims paid fluctuate on a single-y ear basis depending on individual cases. 
However, they are not on an upward trend in the medium run.  
FY Claims paid 
(million yen) 
2009 10,441 
2010 8,574 
2011 8,359 
2012 4,416 
2013 12,234 
 Page 58, Para. 3.128  The report states that "The legal framework on IPRs in Japan has remained largely unchanged 
since its last review although some legislatio n was amended in 2014. The principal legislation 
relating to IPRs in Japan is listed in Table 3.19.".  
Question 21 
 
Please further describe the revisions in 2014 to the Patent Act , Utility Model Act , Designs Act , Law 
on the Circuit Layout of Semiconductor Integrated Circuits , Act on Special Provisions for 
Procedures Related to Industrial Property Right  and Act on International Applications under the 
Patent Cooperation Treaty .  
 
RESPONSE 
 1) Revision of the Patent Act and the Utility Model Act 
 
[i] Improving relief measures  
In line with the legal systems overseas, the Pa tent Act is to be re vised to take relief 
measures so that applicants are entitled to  extend certain periods required for filing, 
examination, and other procedures when they  have compelling reasons, e.g., following 
disasters, etc. These measures will also be applied to the same cases covered by the 
Utility Model Act, Design Act, Trademark Ac t, and Act on International Applications 
under the Patent Cooperation Treaty.  
[ii] Creating a new system for submitti ng an opposition to a granted patent 
 The Act is to be revised to create a new syst em for submitting an opposition to a granted 
patent, so as to realize the stabili ty of patent rights earlier. 
 2) Revision of the Utility Model Act  
In line with the legal systems overseas, the Pa tent Act is to be re vised to take relief 
measures so that applicants are entitled to  extend certain periods required for filing, 
examination, and other procedures when they  have compelling reasons, e.g., following 
disasters, etc. 
 3) Revision of the Design Act 
 
The Government of Japan deposited an instrume nt of accession to the Geneva Act of the 
Hague Agreement Concerning the Internationa l Registration of Industrial Designs. 
Based on the Geneva Act, Japan's Design Act is to be revised to improve the provisions WT/TPR/M/310/Add.1 
 
- 57 - 
 
for simultaneously filing a design applicatio n with multiple offices overseas in one 
procedure, so as to contribute to redu cing the cost imposed on applicants. 
 4) Revision of the Act on International Applications under the Patent Cooperation 
Treaty.  
 The Act on International Applications under th e Patent Cooperation Treaty (PCT) is to be 
revised to improve the provisions under wh ich applicants are able to pay fees for 
international applications with the JPO in the same way as domestic fees, when they file 
such international applications with the JPO under the PCT systems.  
Question 22 
 
Among the above-mentioned amended laws, which are provided with enforcement laws? What are 
the main contents of such enforcement laws? 
 RESPONSE 
 
There is no enforcement law among the above-mentioned amended laws.  
 Page 60, para. 3.130 
 
The report states that "On 7 June 2013, the IP Strategy Headquarters issued the Intellectual Property Policy Vision to address shortcomings  within the current climate for development of 
intellectual property by improving registration of  intellectual property both in Japan and abroad, 
the rights from registration, and the protection of those rights. The Vision notes progress made 
since the Intellectual Property Basic Act was passed in 2003 and outlines the measures that should 
be taken to continue improvements over the next twenty years around four pillars …". 
 Question 23 
 
Please describe the government support measures provided by the Intellectual Property Policy 
Vision  for intellectual property administration and overseas right-obtaining of SMEs.  
 
RESPONSE 
 As a part of its efforts to strengthen co mprehensive support for the overseas business 
expansion of Japanese companies, including SMEs and venture companies, the 
Government of Japan will enhance the suppor t system for global expansion, providing 
thorough support from the acquisition to the utilization of rights overseas, in affiliation 
with relevant agencies including the JPO, th e National Center for Industrial Property 
Information and Training (INPIT), JETRO, and others. 
 Please refer to the Intellectual Property Policy Vision for details. 
http://www.kantei.go.jp/jp/singi /titeki2/kettei/vision2013_e.pdf  
 
Question 24 
 Japan has mentioned in the third improvement measure that "In order to stimulate the creation of new industries and to continue the development of culture, it is necessary to create a cycle of content reproduction and use by overcoming the conflicting interests of rights-holders and users, 
and by designing a flexible system that would promote new business creation". Please describe the 
specific measures taken by Japan to achieve the above-mentioned objective.   
RESPONSE 
 The Government of Japan will comprehe nsively implement measures related to 
improving the environment for adjusting to th e digital network society that will sustain 
the global development of content. Accordin g to the Intellectual Property Policy Vision, 
the examples of specific measures on which the Government of Japan will place 
emphasis are as follows.  
 WT/TPR/M/310/Add.1 
 
- 58 - 
 
  
 
 (1) For the content industry, which has a gr eat spillover effect on other industries 
including consumer industries, the Government  of Japan will place special emphasis on 
resource allocation, work to enrich its measures.  
(2) In order to promote the secondary use of broadcast programs and so on, the 
Government of Japan will facilitate efforts fo r smoothing licensing procedures, including 
establishing a contact organization where complex licensing procedures are centrally 
managed. 
 (3) In order to improve the environment for new user-generated content using the Internet, for the promotion of free utilization, and for the creation of new industries, the 
Government of Japan will consider how th e system should be, including reviewing 
copyright-related systems and building up a smooth licensing system, and will take the 
necessary measures. 
 
(4) In order to promote the development of di gitizing and archiving cultural assets and 
the like in various fields and to realize colla boration among archives, the Government of 
Japan will discuss the establishment of an environment and the enhancement of 
information provision to the world, and ta ke necessary measures. In addition, the 
Government of Japan will discuss and cons ider how digital textbooks and materials 
should be positioned in the context of th e textbook authorization system, and how the 
textbook authorization system and so on should  be in relation to this issue, including 
copyright issues, and take  the necessary measures. 
 
Page 60, para. 3.131 
 The report states that "The IP Strategic Program 2013 identifies specific plans of action and 
provides concrete proposals for future work, including on standardization and cutting edge digital 
network … ".  Question 25 
 Please further describe the proposals made by the IP Strategic Program 2013 for the standardization and cutting edge digital network.  
 
RESPONSE  
With regard to international standardization st rategies in specific strategic fields, the 
Government of Japan will facilitate voluntar y efforts made by interested parties. 
Furthermore, in order to improve the enviro nment for adjusting to the digital network 
society, various specific measures are propose d in IP Strategic Program 2013 (As for the 
example of the specific measures, please refer to the answer to Q24).  
 Page 61, para. 3.134 
 
The report states that "Under the Industrial Comp etitiveness Enhancement Act of 2013, the cost of 
filing patent applications by an individual, a small- or medium-sized enterprise that has 
commenced business or been established less than ten years or a micro-enterprise, has been 
reduced, including examination requests, patent annuities (for the first to tenth year) for domestic applications as well as search fee, transmi ttal fee, and preliminary examination fee for PCT 
international applications in Japanese. Those companies filing PCT international applications in 
Japanese will have two-thirds of the international filing fee and handling fee reimbursed by the 
Japan Patent Office (JPO).".  
Question 26 
 
Please further describe the specific conditions for individuals to apply for reduction of patent cost, 
the identification standards of "small- or medium-s ized enterprises" and the specific reduction ratio 
of patent cost of individuals and sm all- or medium-sized enterprises.  
 WT/TPR/M/310/Add.1 
 
- 59 - 
 
RESPONSE 
 Individuals and small- or medium-sized enterprise which can utilize the reduction 
measures under the Industrial Competit iveness Enhancement Act are as follows: 
 
1. individuals 
- Small sole proprietor (Number of empl oyees is less than 20 people) or 
- Sole proprietor with less than 10 years after its establishment 
2. small- or medium-sized enterprises 
- Small company (Number of employees is less than 20 people) or 
- SME with less than 10 years after its establishment. 
The Japan Patent Office reduces patent annui ties, etc., by 2/3 for both individuals and 
small-or medium-sized enterprises based on the reduction measures. 
 
Question 27 
 
Do foreign individuals and small- or medium-sized enterprises enjoy the same cost reduction when 
applying for patents in Japan? 
 RESPONSE  
Regardless of whether Japanese or non-Japa nese company, the reduction for patent 
annuities etc. implemented by the Japan Pate nt Office shall be applied to the company 
which fulfills the requirements for each measure. 
 
Page 65, para. 3.155  
The report states that "In 2012, the Copyright Act was amended on the incidental use of copyright 
works to strengthen the protection against illegally downloading music or film files, including criminal penalties…To accede to the Beijing Treaty and to clarify that not only books published in paper but also electronic books are covered by the right of publication, the Copyright Act was 
amended in 2014.". 
 Question 28 
 Please describe the specific amendments made to the 2014 Copyright Act.   
RESPONSE 
 1. Amendment of provisions relating to the right of publication in response to e-books 
 
1) Establishment of the right of publication 
The owner of copyright may establish th e right of publication in favor of a 
person who undertakes 
 
①	To publish the work in a writing or a pr inting (including the distribution of 
works recorded on a memory) 
 
②	To transmit copies of a work record ed on a memory on the Internet  
2) Contents of the right of publication 
The owner of a right of publication shall, as provided by the act of 
establishment, possess the following exclusive rights. 
 
①		Right to reproduce a work in a writing or a printing for the purpose of 
distribution (including the right to re produce a work on an electro-magnetic 
record stored on a memory)  
 WT/TPR/M/310/Add.1 
 
- 60 - 
 
  
 
 ②		Right to transmit copies of a work re corded on a memory on the Internet 
3) Obligation of publication and request to terminate the right of publication 
①	Unless otherwise stipulated in the contract, the owner of the right of 
publication shall, depending on the contents of the right, have the 
obligations as follows: 
- To publish or transmit on the Internet  within a period of six months after 
the date of receipt of the manuscripts, etc. 
- To publish or transmit on the Intern et continuously in accordance with 
business practice. 
②	The owner of copyright may terminate the right of publication if the owner of 
the right of publication has not discha rged his or her obligation mentioned 
in 3) ① above.  
2. Amendments to accede to the Beijing Tr eaty on Audiovisual Performances (2014) 
In line with acceding to the Beijing Treaty  on Audiovisual Performances, protection 
under the Copyright Law is also granted to pe rformances by nationals of the Contracting 
Parties of the Treaty. 
 Question 29 
 Japan amended the provisions of "incidental use"  of copyright in the 2012 Copyright Act. Please 
describe such adjustments in detail. Are the amendments retained in the Act of 2014?  
 
RESPONSE  Provisions regarding incidental appearance of  something in a photo, etc. are created in 
order to prescribe that the following activities  do not infringe on copyrights, etc. These 
provisions were not revised by the law amendment in 2014.  
- Use of incidental copyrighted works  
- Use of copyrighted works that is deemed  necessary during the stage of carrying 
out examinations to obtain permission, etc.  
- Use of copyrighted works for trials fo r technology development or practical 
application  
- Use of copyrighted works for informatio n processing necessary for preparation 
for information provision through the use of information and communication 
technologies. 
Page 72, para. 4.14 
 
The report states that "The 2009 amendment aims to facilitate the efficient use of land by allowing 
companies to lease farmland. In the first five years following the amendment, 1,576 firms entered 
agriculture". 
 
Question 30 
 What activities are such companies engaged in? Has the objective of improving the efficiency of 
land use expected by Japanese government been achieved and agricultural production promoted?  
 RESPONSE 
 
Many of the firms which entered into the agricultural sector are producing vegetables which generate high income per area. Those fi rms are contributing to the efficient use of 
land and the development of the agricultural sector especially in regions which doesn't WT/TPR/M/310/Add.1 
 
- 61 - 
 
have enough successors of farm ers. Further entry of firms to the agricultural sector 
through farmland leasing is expected.  Pages 75-76, para. 4.33-para. 4.35 
 
The report of the Secretariat introduces a series of rice-related policy measures implemented by Japanese government.  
 
Question 31 
 It seems that these new policies are leading Japan's agricultural industry to reduce rice production 
gradually. Please describe Japan's objective of rice self-sufficiency rate. Will these policies lead to 
the increase of rice imports in the future?  
 
RESPONSE 
 The target of rice self-sufficiency ratio in 2025 is set at 97% (based on weight). 
 
The government of Japan does not have an assumption in this target that rice import  will increase in future.   
Pages 75-78, para. 4.33-para. 4.47 
 The report of the Secretariat introduces a series  of policy measures implemented by Japanese 
government for rice, fruits and vegetables, tobacco, animal by-products, etc. 
 Question 32 
 Please describe the direction and objectives of modification of such industrial policies in detail as well as their implementation status and effects.  
 
RESPONSE 
 In order to establish an environment where farmers produce their products depending 
on demands without relying on the government quota allocation by 2018, the 
government will give farmers le eway by indicating rice pr oduction targets from 2015 
crop year for their decision on the production. 
 
The government will consider the subsequent  policies in the light of the situation 
including production volume and supply and demand of rice.  
With regard to fruits, there has not been major modification on the Act on Special 
Measures Concerning Fruit-growing Indust ry Promotion. However, MAFF revised the 
Basic Policy for Fruit Industry Promotion, which is instituted based on the Act and 
revised every five years.  
 For the purpose of accelerating the progress of stabilization of farmers' management, 
MAFF started a new support measure that antici pates farmers' income decline during no 
profit period after replanting in addition to supports for farmers to convert their products from traditional varieties to valuable  fruits and varieties in order to respond to 
needs of consumers, which were also embrac ed in the former (2005) Basic Policy. 
 
The ratio of cumulative converted orchards of  valuable fruits and varieties to the total 
fruits orchards has been  steadily increasing.  
 
Under the policy, the government expected to  enhance earning capacity of the fruits 
productions and stability of  farmers' managements.  
 
Regarding Tobacco, please see the answer to  Q50 submitted by Japan before the TPR 
meeting.  WT/TPR/M/310/Add.1 
 
- 62 - 
 
  
 
 With regard to vegetables and animal by-produ cts, there is no major modification on the 
policies.  Page 104, para. 4.125 
 
The report states that "Japan does not discriminate against foreign participation in international maritime services and accords national treatment (Table 4.22). However, cabotage restrictions 
mean only Japanese flag carriers may carry goods and passengers from one Japanese port to 
another although, under treaties of friendship, commerce and navigation, Japan allows ships to access cabotage services on a reciprocal basis by obtaining permits from MLIT.".  
Question 33 
 
Please describe the conditions for applying to MLIT for cabotage rights in Japan. 
 
RESPONSE  
Only Japanese vessels are a llowed to transport passengers or goods between ports of 
Japan under the ship law.  
To obtain the special permission granted by  the Minister of MLIT-Japan, the services 
should be in line with the following criteria. 
- The transportation of passengers or g oods by foreign flagged vessels between 
ports of Japan should not cause any obstacles with a view to ensuring sustainable water transport services in Japan. 
- The transportation of passengers or g oods by foreign flagged vessels between 
ports of Japan should not cause any obst acles in domestic shipping services 
provided by Japanese shipping companies. 
Part II. Questions based on Policy Statement by Japan (WT/TPR/G/310) 
 
Page 8, para. 2.17  
The statement states that "In addition, Japan has pursued the advance of APEC green growth and 
sustainable development objectives by taking the lead in environmental services and contributing to capacity building for implementation of the 2012 APEC Leaders' commitments on the APEC List 
of Environmental Goods (54 items), which aim to reduce applied tariff rates to 5% or less by the 
end of 2015, taking into account each economy's economic circumstances.".  
Question 34 
 
What's Japan's anticipation for the plurilateral negotiation on environmental goods?   
RESPONSE 
 Japan, together with other members, is committed to work towards the early conclusion 
of EGA negotiation to contribute to gr een growth and sustainable development. 
Japan will work to achieve shared ambitious goal of global free trade in environmental 
goods beyond the APEC List of Environmental Goods. 
 
Question 35 
 How does Japan define and classify environmental services?  
 
RESPONSE  
The scope of Environmental Services for th e APEC initiative is under consideration 
(primarily at GOS (Group of Services)) in APEC.  WT/TPR/M/310/Add.1 
 
- 63 - 
 
Question 36 
 
Japan mentioned its leading role in environmental services under the APEC framework. What specific administrative measures has Japan taken to promote environmental services and 
facilitate trade in environmental services?  
 RESPONSE 
 
In APEC, Japan proposed to develop a plan of action which enhances trade liberalization, 
facilitation, and cooperation of environmental services in 2015, and it was endorsed in 
AMM (APEC Ministerial Meeting) in 2014. 
 
Question 37 
 
What specific measures has Japan taken for capacity building of tariff reduction on environmental 
goods?   
RESPONSE 
 Japan has been making intellectual contributi on to capacity building of tariff reduction 
on environmental goods. For example, Japan ha s sent a speaker (Prof.  Ishido, University 
of Chiba) to the seminar on "the Implemen tation of APEC Environmental Goods List 
Commitments", which was held in the margin of SOM3 in August, 2014.   
Page 10, para. 2.31 
 The statement states that "Both sides exchanged views to promote bilateral trade and investment, 
and reaffirmed the importance of cooperation on global issues such as energy security and the 
environment.".  Question 38 
 Are there any specific action plans for promoting Japan-Korea cooperation in global issues such as the environment issue? In any, please specify. 
 
RESPONSE  
Although there is no such action plan in the framework of the Japan-Republic of Korea 
High-Level Economic Consultation, concerni ng the environment issues, Japan and the 
ROK have been regularly holding a Joint Co mmittee on Environmental Cooperation which 
is based on the Agreement between Japan an d the ROK Concerning the Cooperation in 
the Field of Environmental Protection. 
 Page 11, para. 2.36 
 
The statement states that "First, Japan set up various OOF schemes such as providing US$5 billion through JBIC (Japan Bank for International Cooper ation) Facility for African Investment and Trade 
Enhancement to finance projects in Africa, up to US$2 billion through NEXI (Nippon Export and 
Investment Insurance) in trade and investment insurance, and US$2 billion through JOGMEC (Japan Oil, Gas and Metals National Cooperation) in financial assistance for exploration/development project. As of April 2014, US$2.08 billion was disbursed in total under 
the schemes.". 
 
Question 39 
 
Please describe the total amount of such OOF projects  of Japan during this re view period as well as 
the specific usages of JBIC and NEXI funds supported by the OOF.  
 RESPONSE 
 
Total amount of OOF projects provided by  Japan is US$2.478 billion as of the end 
of 2014. WT/TPR/M/310/Add.1 
 
- 64 - 
 
  
 
 Page 18, para. 4.27 
 The report states that "In the maritime transport sector, the tonnage tax was extended until the end of FY2018 (i.e. March 2019), and the scope of application expanded to include deemed-
Japanese-flagged-vessels.". 
 Question 40 
 Please explain the reasons for Japan's extension of the tonnage tax application deadline and the expansion of its applicable scope. How does Japan assess the effects of its tonnage tax?   
RESPONSE 
 While Japanese-flagged-vessels are steadily increasing thanks to the effect of the 
tonnage tax, we conducted the extension of  its application deadline and the expansion 
of its applicable scope, re-recognizing the im portance of ensuring economic security by 
a Japanese merchant fleet as the wake of the Great Eastern Japan Earthquake. 
 
Part III. Other questions  
 Both the Secretariat Report and Government Statement mentioned that Japan has implemented 
a series of agricultural reforms in recent years to improve the competitiveness of agriculture, 
attract young people to enter agriculture and promote the integration of industrial chains of production, processing, distribution and sales.  
 
Question 41 
 
How does Japan assess the effects of such reform measures? Whether the projected goals are 
achieved? What are the major obstacles of these reforms, and how to deal with such problems?  
 In its notifications on the modification of MRLs standards, Japan usually provides only the MRLs 
before and after the modification, without provid ing any supporting technical documents or their 
links. It is difficult for other Members to obtain relevant inform ation in notification review.  
 
RESPONSE 
 The targets are stated in the Plan for Creati ng Dynamism through Agriculture, Forestry, 
and Fisheries and Local Communities, for example: 
 
1) Expand the export of agricultural, fo restry and fishery products and food 
produce from the current 450 billion yen to 1 trillion yen by 2020 
2) Expand the market size of agriculture based on AFFrinnovation(*) from the 
current ¥1 trillion to ¥10 trillion in 2020 
*AFFrinnovation: Agrinnovation, Forestri nnovation, and Fisherinnovation. 
Adding value to agricultural, forestry, an d fishery products in innovative ways, 
by making new combinations, and creating a value chain. 
3) Increase the ratio of farmland used by  leading farmers to 80% in the next 
10 years.  
When promoting agricultural reforms, it's important to pass on the detailed 
contents of the policies to each farm er and agricultural cooperation. We 
promote informing of the policie s by pamphlets and briefings. 
Question 42 
 
Can Japan provide specific supporting data and technical documents for risk assessment when 
determining the maximum residue limits (MRLs) in its notification documents, so as to improve 
transparency and allow other members to better understand the scientific basis of Japan's relevant measures?  WT/TPR/M/310/Add.1 
 
- 65 - 
 
RESPONSE 
 The FSC publishes all the risk assessment resu lts on FSC's website, including those for 
chemicals. The MHLW also publishes the rational e for setting forth MRLs on its website.  
Please refer to the following link. 
 http://www.fsc.go.jp/hyouka  
http://www.mhlw.go.jp/stf/s eisakunitsuite/bunya/kenkou _iryou/shokuhin/zanryu/bu
kaihoukoku.html  
 
The Secretariat Report for Japan in 2013 ma de the statement that "it is desirable 
to quantify or express the costs and benefits  in monetary terms to the extent possible" 
in the Implementation Guidelines for ex-ante Evaluation of Regulations. 
 
Question 43 
 
Please describe the latest developments in this field.  
 
RESPONSE  The Implementation Guidelines for ex-ante Ev aluation of Regulations state that it is 
desirable to quantify or express in monetary value costs and benefits to the extent it is 
possible. The Guidelines also state that cost -benefit analysis, converting benefits and 
costs into monetary value, is thought to  be the major technique in Regulatory ex ante  
Evaluation.  
 The Government of Japan understands that quantifying costs and benefits to assess 
regulatory proposals is important and promot es it. The Guidelines are available on the 
website of the Ministry of Internal Affair s and Communications and the reports of the 
analyses are available on the websites of the each ministry's responsible. 
 
The results of ex-ante evaluation of regula tions on technical regulations are published 
at the following websites, for example (Available in Japanese).  
http://www.meti.go.jp/policy/policy_ management/top-files/jizen-top.htm  
http://www.mhlw.go.jp/wp/seisaku/ria/26/index.html  
 
Question 44 
 
Please describe Japan's relevant policies for foreign physicians practicing in Japan, such as the basic conditions need to be met by foreign physicians, certification documents, 
approval procedures, administration authorities and scope of practice.  
 RESPONSE 
 
People cannot practice medical treatments without obtaining the License to Medical 
Practice in Japan subject to the Medical Act of Japan. 
 
People who acquired licenses to Medical Practice in foreign countries etc. are able 
to take the Japanese National Examination fo r the License to Medical Practice of Japan, 
after the approval of the qualifications for taking such examination by the 
Minister of Health, Labour and Welfare (MHLW). 
 Question 45 
 Please describe relevant policies for the establishment of joint-venture or wholly-foreign-funded medical institutions in Japan.  
 WT/TPR/M/310/Add.1 
 
- 66 - 
 
  
 
 RESPONSE 
 In principal, operating bodies or agents who are responsible for establishment and management of medical or dental institutions  are confined to non-profit corporations, 
individual doctors or dentists, subject to the Medical Care Act of Japan. 
 Meanwhile, no particular provision for the establishment of joint-venture or 
wholly-foreign -funded medical institutions is stipulated in the Medical Care Act. 
 The Secretariat Report for Japan in 2013 introduced the Japanese Postal Service 
Privatization Act.  
 
Question 46 
 
Please describe the latest developments of Japan' s postal service privatization reform during this 
review period.   
RESPONSE 
 The Government of Japan has the responsibilit y of constantly holding over 1/3 of the 
shares of the Japan Post Holdings. At the sa me time, it will dispose its shares in the 
Japan Post Holdings, other than the ones to be held by the Government, at the earliest 
possible time.  
cf. Article 7 of the Postal Services Privatizat ion Act (Act No. 97 of 2005), Article 2 of the 
Japan Post Holdings Act(Act No. 98 of 20 05) and Article 3 of the Supplementary 
Provisions of the Act. 
 
The Japan Post Holdings will aim to dispose of  all the shares of the Japan Post Bank and 
the Japan Post Insurance as soon as possibl e, while taking into consideration the 
business conditions of both companies and th e influence on the implementation of the 
responsibility for ensuring basi c postal services (the Postal  Services Privatization Act 
stipulates that postal services, simple sa vings, money transfers, debts and credit 
settlements and easily available life insurance services should be made available in post 
offices integrally, equally an d universally throughout the country in a simple and 
user-friendly manner). cf. Article 7, 7-2 an d 62 of Postal Service Privatization Act 
(Act No. 97 of 2005). 
 
On December 26, 2014, Japan Post Holdings announced the IPO scheme of it and its two 
financial subsidiaries (Japan Post Bank an d Japan Post Insurance) after consultation 
with Ministry of Finance Japan.  Aiming to list in the middle  of fiscal 2015 or later, Japan 
Post Holdings is making preparation for lis ting at the Tokyo Stock Exchange, such as 
improvement of its structure toward the listing examination.  
Question 47 
 
What are the qualification requirements by law for foreign capital to participate in Japan Postal 
Group? Which approval procedures are applied?  
 RESPONSE  
There is no restriction for foreign investors on the shareholding of the Japan Post Group 
(in Postal Service Privatization Act).  
Japanese or foreigners are required to obta in the authorization pursuant to the Banking 
Act or the Insurance Business Act to hold a ce rtain amount of voting rights in banks and 
insurance companies under these acts. 
 WT/TPR/M/310/Add.1 
 
- 67 - 
 
【For reference 】 
 
※Postal Privatization Act and Japan Post Holdings Act 
The Government of Japan has the responsibilit y of constantly holding over 1/3 of the 
shares of the Japan Post Holdings. At the sa me time, it will dispose its shares in the 
Japan Post Holdings, other than the ones to be held by the Government, at the earliest 
possible time. (cf. Article 7 of the Postal Se rvices Privatization Ac t (Act No. 97 of 2005), 
Article 2 of the Japan Post Holdings Act (Act  No. 98 of 2005), (Act No. 98 of 2005) and 
Article 3 of the Supplementary Provisions of the Act.) 
 
The Japan Post Holdings has the responsibility of always holding all the shares of the Japan Post Services Company. (cf. Article 6 of the Japan Post Holdings Act (Act No. 98 
of 2005)) 
 
The Japan Post Holdings will aim to dispose of  all the shares of the Japan Post Bank and 
the Japan Post Insurance as soon as possibl e, while taking into consideration the 
business conditions of both companies and th e influence on the implementation of the 
responsibility for ensuring basi c postal services (the Postal  Services Privatization Act 
stipulates that postal services, simple sa vings, money transfers, debts and credit 
settlements and easily available life insurance services should be made available in post 
offices integrally, equally and universally th roughout the country in a simple and user-
friendly manner). (cf. Article 7, 7-2 and 62 of  Postal Service Privatization Act (Act No. 97 
of 2005)) 
 
※Bank Act 
Article 2 (1) The term "Bank" as used in  this Act means a person who engages in 
Banking under the license from the Prime Minist er prescribed in Article 4, paragraph (1). 
(9) The term "Lowest Threshold for a Major Shareholder" as used in this Act means twenty hundredths (fifteen hundredths in th e case where a person who falls under the 
requirements specified by Cabi net Office Ordinance as the existence of a fact that is 
expected to have a material effect on the de cisions on the financial and business policies 
of the company holds voting rights in th e company) of the voting rights of all 
shareholders. 
 
Article 52-9 (1) A person who wishes to become  a holder of voting rights in a single 
Bank which amount to the Lowest Threshold for a Major Shareholder or greater, or a 
person who wishes to establish a company or any other juridical person that is a holder 
of voting rights in a Bank that are equal to or greater than the Lowest Threshold for a Major Shareholder (excluding the State, et c., a company that wishes to become a 
Holding Company as prescribed in Article 52-17, paragraph (1), the person prescribed in 
that paragraph, and a Bank Holding Company th at wishes to make a Bank its Subsidiary 
Company) through any of the following transa ctions or acts shall obtain authorization 
from the Prime Minister in advance: 
(i) Acquisition of voting rights in a Bank by a person who wishes to become the 
holder of such voting rights (excluding acquisition of shares as the result of 
enforcement of security interest or acqu isition of voting rights by any other 
cause specified by Cabinet Office Ordinance); 
(ii) Acquisition of the license set forth in Article 4, paragraph (1) by a company 
whose voting rights amounting to the Lowest Threshold for a Major 
Shareholder or more are held by the person who wishes to become the holder 
of that voting rights; or 
(iii)  Any other transactions or acts  specified by Cabinet Order. 
※Insurance Business Act 
Article 2 (1) The term "Insurance Business"  as used in this Act means the business 
(except business listed in the following item s) of underwriting the risks listed in the 
items of Article 3, paragraph (4) or the item s of Article 3, paragraph (5) with insurance 
for which premiums are received under a contract for the payment of a fixed amount of 
insurance proceeds in connection with the life or death of an individual, with insurance 
for which premiums are received under a cont ract for compensation of damages caused 
by specific and accidental events, or  with any other class of insurance. WT/TPR/M/310/Add.1 
 
- 68 - 
 
  
 
 (13) The term "Major Sharehol der Threshold" as used in this Act means 20% (15% in 
the case where a person who satisfies the requirements specifie d by Cabinet Office 
Ordinance as one with regard to which a fact exists that is expected to have a material effect on the decisions on the financial and business policies of the company, holds 
voting rights in the company) of all shareholders' voting rights. 
 Article 271-10 (1) A person who seeks to be come the holder of a number of voting 
rights in an Insurance Company equal to or exceeding the Major Shareholder Threshold 
or a person who seeks to establish a company or any other juridical person that is the 
holder of a number of voting rights in an Insurance Company equal to or exceeding the 
Major Shareholder Threshold (excluding the St ate, etc., a company that seeks to become 
a Holding company as prescribed in Article 271-18, paragraph (1), the person prescribed 
in that paragraph, and an Insurance Holding Company that seeks to make the Insurance Company its Subsidiary) through any of the following transactions or actions shall 
obtain authorization from the Prime Minister in advance: 
(i) Acquisition of voting rights in the Insurance Company by the person who seeks 
to become the holder of such voting rights (excluding acquisition of shares 
through exercise of security rights or ac quisition of voting rights by any other 
cause specified by Cabinet Office Ordinance); 
(ii) Acquisition of a license set forth in Article 3, paragraph (1), through a 
company that holds a number of voting rights equal to or exceeding the Major 
Shareholder Threshold, by the person wh o seeks to become the holder of said 
voting rights; or 
(iii)  Any other transactions or actions specified by Cabinet Order. 
 
Question 48 
 
Does Japan provide subsidy for universal postal services? If any, please describe the relevant 
subsidy mechanism.   RESPONSE 
 
The government of Japan does not provide any subsidy for universal postal services. 
 
There is no legislation in Japan to prov ide subsidy for universal postal services. 
 Question 49 
 Please describe Japan's major legislative and regulatory authorities in accounting and auditing services.   
RESPONSE 
 
The Certified Public Accountants Act stipulat es the regulatory framework for certified 
public accountants and audit firms, and the FSA  is the regulatory authority pursuant to 
the Act . 
 
Question 50 
 
What are the requirements for foreigners to obtain qualification of certified public accountants in 
Japan? Is there any restrictions on the scope of practice of foreign accountants after obtaining 
qualification certificates?   RESPONSE 
 
In Japan, in order for a foreigner to obtain the certified public accountant qualification, 
it is necessary to be registered on the fore ign certified public accountants roster after 
meeting all of the following three requirements : 
 
1. passing the certified public accountant examination 
2. having more than two years of business experience WT/TPR/M/310/Add.1 
 
- 69 - 
 
3. completing the professional accountan cy education program and receiving 
approval from the prime minister. 
There are no differences between foreigners  and Japanese in terms of the scope of 
practice to obtain the Japanese cert ified public accountant qualification. 
 
Question 51 
 
Please describe the current number of certified public accountants of Japan and the proportion of 
foreigners. How many foreign certified public accountants are partners of accounting firms in Japan?   
RESPONSE 
 According to the available documents from th e Japanese Institute of Certified Public 
Accountants, there are 27,204 certifie d public accountants (as of the end 
of December 2014). There is no available information regarding the proportion of 
foreigners with the certified public accoun tant qualification or the number of such 
foreigners in a partner position at the Japanese audit firms.  
 Question 52 
 
What are the accountancy disciplines for financial statements applied to foreign enterprises listed 
in the Japanese capital market? What are the requirements for their auditors? Can accountants in foreign accounting firms serve as auditor of foreign enterprise listed in Japan?  
 
RESPONSE  
Foreign juridical persons listed on Japanese  stock exchanges are allowed to apply not 
only the Japanese accounting standards, bu t IFRS, US-GAAP, Hong-Kong IFRS, etc. Only 
certified public accountants and audit firm s can become accounting auditors. Foreign 
accounting firms in a foreign state in complia nce with the laws and regulations of the 
foreign state shall notify the FSA in advance in order to audit a foreign juridical person 
listed on the Japanese stock exchange (Certifi ed Public Accountants Act, Article 1-3 (7), 
Article 34-35 (1), Cabinet Office Ordina nce on Foreign Audit Firms, etc.). 
 
Question 53 
 
Please describe relevant policies to attract and facilitate foreign professionals in various fields to 
work in Japan.   RESPONSE 
 
1. Highly skilled foreign professionals  
In order to promote entry of highly skilled fo reign professionals, a points-based system 
that provides highly skille d foreign professionals with  preferential immigration 
treatment was introduced in May 2012. 
 
In 2013, the Government implemented measures aimed at increasing the convenience of preferential measures to promote the utiliz ation of the points-based system for highly 
skilled foreign professionals. More specif ically, these related to the relaxing 
of requirements for recognition as a highly sk illed foreign professional, such as revising 
the minimum annual income criterion, as well as eligibility to be accompanied by 
parents or domestic workers. Furthermore, in June 2014, the Act to Amend the 
Immigration Control and Refugee Recognition Act was enacted to establish a new status 
of residence with an indefinite period of stay targeting highly skilled foreign 
professionals. This provision will en ter into effect from April 1, 2015. 
 WT/TPR/M/310/Add.1 
 
- 70 - 
 
  
 
 2. FTA/EPA commitments 
 Japan positively accepts foreign specialists  through so called "MNP" commitments under 
EPA/FTAs. In this regard, foreign specialists are committed under categories ICT, IP and 
CSS in general. 
 In the Policy Statement by Japanese Government  for WTO review of Japan in 2013, 
Japan mentioned that it has established "Japanese centers" in 6 Russian cities 
to cultivate talents and provide other su pport for economic cooperation and trade 
between the two countries.   
Question 54  
 
Have the above-mentioned "Japanese centers" play ed their anticipated roles in recent years? 
Does Japan have plans to initiate similar cooperation with other countries?  
 RESPONSE 
 
Japan Center in Russian Federation offers te chnical assistance to Russian entrepreneurs 
and support for business activities between Japan and Russian Federation, considering 
local characteristics and business opportunity, which are specific to location of each 
branch. No facilities similar to Japan Center s in Russian Federation are planned to be 
launched in other countries currently.  
Question 55  
 
Does Japan have plan to support the use of RMB and yen in bilateral trade and investment so as to 
promote the development of trade directly settled with currencies of the two countries?  
 RESPONSE  
On December 25, 2011, the Japanese and Chinese leaders agreed to enhance mutual 
cooperation in financial markets of both co untries and encourage financial transactions 
between the two countries (see below). The menu of cooperation includes facilitating 
trade settlement in JPY and RMB to reduce fo reign exchange risks and transaction costs 
for exporters/importers in both countries.  
Accordingly, JPY-RMB direct trades have been established in Tokyo and Shanghai 
in June 2012.  Question 56 
 In addition to a series of measures encouraging foreign enterprises to invest in Japan in the Secretariat Report and Government Statement, what policies have Japan implemented to 
encourage domestic enterprises to invest overseas? What measures is Japan planning to take in 
the future?   
RESPONSE 
 The Government of Japan facilitates outwar d investment by concluding International 
Investment Agreements (IIAs) and Investment Chapters of EPA/FTAs. Also, in 2014, 
Ministry of Land, Infrastructure, Transp ort and Tourism (MLIT) established a new 
government funded agency "Japan Overseas Infrastructure Investment Corporation for 
Transport & Urban Development (JOIN)" fo r promoting PPP infrastructure projects 
conducted abroad. JOIN will encourage Japane se firms to invest in such projects 
by making joint investment with them.  WT/TPR/M/310/Add.1 
 
- 71 - 
 
Question 57 
 
Information available to China indicates that Japan is now amending its Patent Act  and there might 
be some adjustments to provisions related to on-duty invention. Please describe the relevant 
situation in detail.  
 RESPONSE 
 
As the Diet has not started deliberation of th e Bill yet. The information we can provide at 
this moment is limited to the following news release. http://www.meti.go.jp/englis h/press/2015/0313_03.html WT/TPR/M/310/Add.1 
 
- 72 - 
 
  
 
 6. NEW ZEALAND 
Report by the WTO Secretariat - WT/TPR/S/310 
Section III: Trade Policies and Practices by Measure 
3.1.4.1 MFN applied tariff 
WT/TPR/S/310, section 3.1. 4.1, page 30, para. 3.16 
 The Secretariat report notes "the simple average rate for all the AVEs supplied is 29.7%; however, 
the highest rate is 298.6%, for certain semi-milled or wholly milled rice. Of the 104 highest tariffs, 
96 had non- ad valorem  rates." Japan's tariff structure is quite complicated with many different 
types of rates.   
Questions 
 
 What steps has Japan taken to simplify its tariff structure? 
 What steps does Japan intend to take to simplify its tariff structure? 
 What plans, or regular programmes, are in place to review applied tariff levels? 
 What policies are in place that would allow Japan to increase or lower its applied tariffs in 
general or in specific circumstances? 
 RESPONSE  
Japan sets an appropriate tariff rate on each product, which is consistent with the WTO 
Agreement, taking into consideration various factors such as the situations of domestic  
industries. 
 
To respond to current domestic and internat ional economic climate, tariff rates have 
been reviewed every year through due procedures. 
 
Please see the note below for more deta iled information on the tariff revision 
procedures.  (Note） Requests for tariff revision from part ies located in Japan (as well as foreign 
interested parties residing in Japan) are received by the government ministry 
or organization that holds jurisdiction over  the request items involved. Tariff-revision 
requests from foreign governments are received by the Ministry of Foreign Affairs. Requests received from foreign governments by the Ministry of Foreign Affairs are sent 
to the relevant authorities that hold jurisdiction over the request items 
(although requests from foreign governme nts may also be made directly to the 
government ministry organization that ho lds jurisdiction over the request items). 
 
Regarding requests received from parties in Japan and from foreign governments, 
the authority in question reviews the relevance of the claim and issues a request on tariff revision to the Ministry of Financ e by the end of August of each year.  
 
Normally from September, the Ministry of Finance conducts deliberations with related 
government ministries and organizations on issues for which tariff-revision requests 
were made. Reviews are conducted on wh ether the revisions are appropriate.  
 Furthermore, tariff revisions are reviewed by  the Council on Customs, Tariff, Foreign 
Exchange and Other Transactions, normally from September. In December, a report 
is submitted to the Ministry of Finance regard ing tariff revision for the next fiscal year.  
 The Ministry of Finance produces a proposal for tariff revision, with due respect to the 
reports submitted by the aforemention ed Council. Furthermore, the proposal 
is consulted by the Tax Commission.   
The revised law proposal is submitted to th e Diet, following decision-making by the 
Cabinet, either in January or February.   WT/TPR/M/310/Add.1 
 
- 73 - 
 
If approved and passed after a deliberation and vote by the Diet, the revised law is 
published.   
- #Council on Customs, Tariff, Foreig n Exchange and Other Transactions  
 This is an advisory arm of the Minister  of Finance that conducts studies and 
deliberations on revision of the tariff rates and other important issues pertaining to tariffs, in response to  requests and consultations from the 
Minister.  
 
3.3.2 Subsidies and support WT/TPR/S/310, section 3.3.2, page 52, pa ra. 3.109 and section 4.2.3.4, page 89, 
para. 4.81 
 Section 3.3.2 of the Secretariat's report notes that Japan's "last notification to the Committee on 
Subsidies and Countervailing Measures under Article XVI:1 of GATT 1994 and Article 25 of the 
Agreement on Subsidies and Countervailing Measures includes a list of 55 different schemes with another two (for fisheries) in a supplemental notification.". 
 
Regarding fisheries subsidies, New Zealand also notes that in para. 4.81, the Secretariat records that "an income stabilization measure was introduced in FY2011, and a cost reduction measure introduced in FY2010" and that these measures cover the fisheries sector. These measures do not 
appear to have been contained in Japan's most recent subsidy notifications.  
 Questions 
 With regard to these measures, please:  
 Identify the fisheries affected by the measures , by geographical area (e.g. territorial sea, 
EEZ, high seas), and the species affected by the measures (e.g. both target and by catch species) 
 Clarify the current status of the measures, how long it is anticipated that the measures 
will be in place, and how the budget will change over the life of the measures? 
 Advise when it will notify the measure to the WTO? 
RESPONSE 
- This program does not specify the types of fisheries, geographical areas or 
species. 
- The government assesses the possibility of its continuation and the budget of 
the program every year. 
- The government of Japan will consider it based on the discussion in WTO. 
3.3.2 Subsidies and support 
WT/TPR/S/310, section 3.3.2,  page 52, paras 3.108-112 
 
While not mentioned in the Secretariat report, the Japanese government in recent years has introduced schemes such as "Eco-points" and "Woodpoints" which provide incentives for 
consumers to purchase certain products for a specified period.  
 Question 
 
 How will Japan ensure that any future schemes of this sort will not discriminate between 
domestic and foreign products from the date of introduction of the scheme (for example 
guaranteeing that there will be no application period for foreign products that is not also 
applied to domestic products)? WT/TPR/M/310/Add.1 
 
- 74 - 
 
  
 
 RESPONSE 
Japan will implement such programs without distinction between domestic and foreign 
products.  
Note: Wood Use Points Program ended subs tantially by the end of September 2014. 
 Section IV: Trade Policies by Sector 
 
4.1 Agriculture WT/TPR/S/310, section 4.1, p. 68, para. 4.4  
Section IV, paragraph 4 of the Secretariat report notes that "a high degree of government support 
and protection for farming has also meant that small-scale farming remains profitable, particularly when supplemented by non-farm incomes. However,  the result has been a steadily aging farm 
population and an inefficient agricultural sector." 
 Questions  
 
 How does Japan respond to the statement by the Secretariat that government support 
and protection for farming has resulted in a st eadily aging farm population and inefficient 
agricultural sector? 
 What measures is Japan taking to mitigate these trends?  
RESPONSE 
 The secretariat mentioned that the tren d is caused by a high degree of 
government support and protection, but ac tually it is caused by the situation 
where farmers' income has not increase d, the number of young farmers has not 
grown, and the consolidation of farmla nd has been lagging behind, while the 
prices of agricultural products have stagnated. 
 The government is attracting younger people into agriculture through support, 
encouragement to set up farm businesses,  education and training. Besides, the 
government is facilitating the efficient us e of land by allowing business farmer 
to lease farmland. 
4.1.2.1 Legal and institutional framework 
WT/TPR/S/310, section 4.1.2.1, p. 71, para. 4.11 
 
Section IV, paragraph 11 of the Secretariat report notes that the "review of the current [Food, Agriculture and Rural Areas Basic] Plan started in December 2013 and sets out the objectives of 
doubling incomes in agriculture and rural areas over the next ten years by increasing demand 
(both domestic and in export markets), improving value chains, reducing costs, promoting structural reform and improving productivity.".  
Questions  
 
 What barriers has Japan identified to achieving the objectives of reducing costs and 
improving productivity?  
 What, if any, specific agricultural structural reforms is Japan planning to implement over 
the next five to ten years to overcome these barriers?  
RESPONSE 
 One of the barriers to reducing of costs and improvements of productivity is the 
agricultural structure in Japan where farmers are cultivating scattered small 
farmlands. 
 Accelerating farmland consolidation to  business farmers is needed so as to 
overcome the disadvantaged farmland stru cture of farms in Japan. To achieve WT/TPR/M/310/Add.1 
 
- 75 - 
 
the goal of increasing the ratio of farm land used by business farmers from 50% 
to 80% in next ten years, the legislat ion was passed to establish a regional 
government-supported institution which promotes farmland consolidation in 
each prefecture. The institutions rent farmlands from the owners, improves 
infrastructure if necessary , and then lease the lands to business farmers so that 
they can use large areas of farmland. 
3.1.8 Sanitary and phytosanitary measures 
WT/TPR/S/310, section 3.1.8, p. 40, para. 3.54 
 The Secretariat report states that "under the provis ions of the Food Sanitation Act, imported food 
may be exempted from inspection if a cargo is inspected by an official inspection organization in 
the exporting country and bears the result of th e inspection." The report also states that 
"the inspection bodies must be registered with the government of Japan, through the government of the exporting country" and currently 3,891 laboratories were registered.  
 
Question  
 
 Has Japan considered accepting the results from laboratories approved by competent 
authorities (who maintain their own lists or registers) rather than approving laboratories on a case by case basis, and if not, why not?  
RESPONSE 
The Ministry of Health, Labour and Welfare (MHLW) accepts the test results issued by 
Foreign Official Laboratories which are listed by the MHLW.  
The MHLW maintains the list of Foreign Offici al Laboratories and adds the laboratories 
with analytically capabilities that are intern ationally registered upon the requests from 
foreign countries. 
 
For the detailed procedure of registration to the MHLW's list of Foreign Official 
Laboratories, please refer to the following URL. http://www.mhlw.go.jp/english/to pics/importedfoods/dl/1-10.pdf  
 
4.1.2.1 Legal and institutional framework WT/TPR/S/310, section 4.1.2.1, p. 72, para. 4.13 
 
Section IV, paragraph 13 of the Secretariat report ou tlines objective of Japan's Basic Plan for Food, 
Agriculture, and Rural Areas. These objectives include: "Improving value added through higher 
quality production, and closer links to processers and consumers".  
 Question  
 
 How will Japan achieve this objective of higher quality production and closer links to 
processers and consumers?  
RESPONSE 
Japan will promote the strategies to increa se the value of agriculture, forestry and 
fisheries products by facilitating consolidat ion of production, process and distribution 
as well as innovating new industries utilizing local resources. In orde r to carry out this 
promotion, Japan will efficiently take advantag e of potential resources in rural areas and 
agriculture, forestry and fisheries industri es, as well as supporting the protection 
of intellectual properties for creating local brands of foods and agriculture, forestry, 
fisheries products. 
 
4.1.2.2 Trade policies WT/TPR/S/310, section 4.1.2.2, p. 73, para. 4.19 
 
Section IV, paragraph 19 of the Secretariat report no tes that fill rates for "Other dairy products for 
general use" were over 90% for each year from  FY2007 to FY2012 but fill rates fo r other quotas, WT/TPR/M/310/Add.1 
 
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 such as "skimmed milk", "prepared whey (for infa nt formula)", "butter and butter oil", and some 
others were consistently below 40%.  Questions 
 
 What were the reasons for the ongoing signif icant 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 products indicates a high demand for such products 
generally?  
 What effect does this quota underfill have on Japan's manufacturing sector with respect 
to sourcing ingredients?  
 What plans does Japan have to address thes e significant and ongoing underfilll rates, 
and what suggestions, if any, has the manufacturing sector made?  
RESPONSE 
 These TRQs have been under-filled as the domestic consumption related to 
these TRQs has been declining. 
 Japan's manufacturing sector has not be en affected by the quota underfill, 
because the underfill has been caused by the decrease of domestic 
consumption. 
 For the purpose of utilize unused quotas, a scheme of reallocation are already 
been implemented. There are no suggestions on this matter from 
manufacturing sector. 
4.1.2.3 Domestic support 
WT/TPR/S/310, section 4.1.2.3, p. 74, para. 4.25 
 
Section IV, paragraph 4.25 of the Secretariat report  states that "The relatively high tariffs have 
helped to maintain domestic prices higher than world prices. Most other forms of market price 
support have been removed and administered prices now apply to a limited number of products 
(pig meat, beef, and calves). Participation in other programmes intended to contain production of rice and milk is not obligatory, but little production in excess of limits takes place.".  
Questions  
 
 Please explain what non-obligatory programmes are currently intended to contain the 
production of milk and how these programmes work in conjunction with domestic 
production quotas?  
 Please also explain why there is little prod uction in excess of programme limits, when 
participation is not obligatory?  
 Please provide additional information on the operation of all programmes intended to 
contain the production of milk?  
RESPONSE 
 There is no program intended to limit  the production of dairy products.   
 The voluntary stable liquid milk suppl y program is operated in which JDC 
(Japan Daily Council) sets the milk production target based on its estimates of 
supply and demand. 
 Under this program, milk producers pr oduce liquid milk on the basis of the 
target quantity. WT/TPR/M/310/Add.1 
 
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 If the production exceeds the program limit s (target quantity), it would be hard 
for milk producers to sell the exceeded amount to dairy manufacturers, because there is almost no demand for that amount and they have little chance to find buyers. 
 There is no program intended to limit  the production of dairy products. 
4.1.2.4.2 OECD indicators 
WT/TPR/S/310, section 4.1.2. 4.2, p. 80, para. 4.55 
 
Section IV, paragraph 55 of the Secretariat report states that "Despite changes in agricultural programme over the past few years, support and protection given 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 linked to prices or production as well as general support such as research and extension services. However, market  price support is the main component and it, 
along with other transfers based on output and in puts, is categorized 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 su pport policies and introduced and expanded 
direct payments. The Japanese-style direct payment including the payment 
for multifunctionality of agriculture was newly introduced as one of such direct 
payments. Japan will continue to pursue stru ctural reform which fits the agricultural 
situation in Japan, in accordance wi th the WTO Agreement on Agriculture. 
 
4.2.3.4 Support for fisheries 
 
WT/TPR/S/310, section 4.2.3.4, p. 88, para. 4.79  
Section IV, paragraph 79 states that "support for renewal of small fishing boats and equipment is 
provided to improve workers' safety at  sea on family owned coastal boats".  
 
Question  
 
 Please advise how Japan ensures that vessel fishing capacity is not increased when 
funding such improvements? 
RESPONSE 
The Government of Japan restricts the number of fishing vessels as well as the size of 
each vessel through the licensing scheme of  the government. This programme does not 
contribute to the increase of fishin g capacity leading to overfishing. 
 
4.2.3.4 Support for fisheries 
WT/TPR/S/310, section 4.2.3.4, p. 89, para. 4.81 
 Section IV, paragraph 81 discusses support for fisheries, including a cost-reduction measure introduced in FY2011, which "compensates for any increase above 115% of the average for the 
past two years in the price of crude oil."  
 WT/TPR/M/310/Add.1 
 
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 Question 
 
 Is this cost-reduction compensation measure available to vessels which fish a) on the 
high seas or b) in other States' EEZs? 
 How long will this measure be in place? 
 Is this programme being reviewed in light of current low oil prices? 
 
RESPONSE 
 This program does not specify its geographical areas. 
 The government assesses the possibility of its continuation and the budget 
of the programme every year. 
 It has not been reviewed. 
Report by the Japanese Government – WT/TPR/G/310 
 
Section IV: Japan's Domestic Policies 
 4.4 Agricultural reform 
WT/TPR/G/310, section 4.4, p. 17, para. 4.18 
 Section IV, paragraph 18 of Japan's report states that one of the pillars of the 2013 Plan for Creating Dynamism through Agriculture, Forestry and Fisheries and Local Communities (the Plan) 
was "establishing an original direct paymen t scheme to revitalise rural communities." 
 Question 
 
 Please explain what changed in Japan's 2014 review of the plan with respect to the 
operation of the original direct payment scheme to revitalise rural communities?  
RESPONSE 
The plan remained unchanged in 2014 review of  the plan with respect to the operation 
of the original direct payment sche me to revitalize rural communities. 
 WT/TPR/M/310/Add.1 
 
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7.  ECUADOR 
1.  De conformidad con el Capítulo 1, página 11, párrafo 1.4, referente a la  política fiscal, podría 
la Delegación del Japón ampliar el tema de los estímulos fiscales otorgados por el Gobierno en el año 2013, que alcanzaron una suma total de alrededor de 150.000 millones de dólares de los 
EEUU y especificar su funcionamiento, objetivos y sectores beneficiarios. 
In accordance with Chapter 1, page 11, paragraph 1.4, regarding fiscal policy, can the Japan 
Delegation expand on the subject of tax incentives granted by the Government in the year 2013, 
reaching a total amount of approximately 150,000 million US dollars and specify its purpose, 
objectives and beneficiary sectors. 
RESPONSE 
"Emergency Economic Measures for the Revi talization of the Japanese Economy" set 
in January 2013 contains diverse tax measures. 
 By introducing tax incentive measures to pr omote investments in production facilities 
and expanding R&D promotion tax system, we aim to stimulate private investment for 
stronger growth. Along with that, by intr oducing special measures for the promotion 
of the distribution and expansion of the cu rrent special incentives measures for the 
promotion of job creation, we also aim to br ing out the potential abilities in diverse 
human resources and to create wealth through growth.  In addition, the economic measures contain tax measures to support and invigorate 
SMEs which shoulder regional economies. Th ose also contain introduction of a Japanese 
version of an Individual Saving Account  ("Japanese ISA") and expansion of the 
unification of the income tax on profits from  financial instruments in order to promote 
the steady formation of the household asse ts and to expand supply of money for the 
growth of SMEs.  
List of tax measures 
 
 tax incentive measures to promote do mestic investments in facilities 
 expansion of taxation scheme to pr omote environment-related (renewable 
energy and energy saving) investment  
 expansion of R&D promotion tax system to promote corporations' innovation 
 expansion of special measures for tax deductible expenses on entertainment 
and social expenses for SMEs 
 tax incentive measures to promote investme nt in facilities to enhance business 
by SMEs that engage in commerc e and service industry businesses 
 from the points of view of promoting the steady formation of the household 
assets and of expanding supply of nece ssary funds for economic growth in 
order to overcoming deflation, expansion of a Japanese version of an Individual 
Saving Account ("Japanese ISA") and th e unification of the income tax on 
profits from financial instruments 
 tax measures to expand increase in wage and employment by corporations 
 introduction of an exemption as for gift tax on gift money for education in lump 
sum to his or her own children or grandch ildren in order to transfer assets from 
the older generation to younger generation and to support education and human resources development. 
2.  De conformidad con el Capítulo 2, página  21, párrafo 2.3: "Además de los ministerios 
pertinentes varias entidades [¼] se encargan de las actividades relacionadas con el comercio, o contribuyen a ellas, por ejemplo: la Organización de Comercio Exterior del Japón (JETRO), WT/TPR/M/310/Add.1 
 
- 80 - 
 
  
 
 encargada de la promoción del comercio; y el Banco de Cooperación Internacional del Japón (JBIC) 
y Nippon Export and Investment Insurance (NEXI), que son los organismos japoneses de crédito oficial para la exportación.". 
Podría Japón explicarnos, ¿En qué consiste el sist ema de crédito otorgado por el JBIC y el sistema 
de seguros provisto por el NEXI, y cómo difieren estos de los créditos comerciales y los seguros 
otorgados por entidades no gubernamentales o privadas? 
In accordance with Chapter 2, page 21, paragraph 2.3: "In addition to the relevant ministries, 
several entities [¼] are responsible for activities related to trade, or contribute to this, for 
example, the Japan External Trade Organization (J ETRO), responsible for promoting trade; and the 
Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI), which are the Japanese official credit agencies for export.".  
Can Japan explain, what is the credit system issued by the JBIC and the insurance system 
provided by NEXI, and how these differ from commercial loans and insurance granted by non-
governmental or private entities? 
RESPONSE 
NEXI 
 
NEXI provides Export Credit Insurance to co ver risks of export and import transactions, 
overseas investments or loans undertaken by non-governmental or private entities. 
NEXI's insurance products cover risks that are not covered by commercial insurance companies.  
 
JBIC  
In accordance with the statutory law, and having the objective of supplementing the 
financial transactions implemented by private- sector financial institutions, JBIC provides 
loans to the projects in the following fields: 
 
 Promoting the overseas development an d securement of resources which are 
important for Japan 
 Maintaining and improving the internat ional competitiveness of Japanese 
industries 
 Promoting the overseas business having the purpose of preserving the global 
environment, such as preventing global warming 
 Preventing disruptions to international financial order or taking appropriate 
measures with respect to damage s caused by such disruption. 
3.  De conformidad con el Capítulo 3, página 28, párrafo 3.4: "El Japón ha concertado acuerdos 
de reconocimiento mutuo de los programas de operadores económicos autorizados con el Canadá, 
la UE, la República de Corea, Malasia, Nueva Zelandia, Singapur y los Estados Unidos, con arreglo a los cuales la Administración de Aduanas, al efectuar su propia evaluación de los riesgos, tiene en cuenta la condición de los miembros de los programas de operadores económicos autorizados de 
los demás países. El Japón está celebrando consultas con Suiza sobre la posibilidad de concluir 
programas de reconocimiento mutuo de los operadores económicos autorizados.". 
Podría Japón explicarnos, ¿Cuáles son los requisitos para concluir un ARM con el Japón? 
¿Antes de iniciar la negociación deben cumplirse ciertos requisitos? ¿Cualquier país puede solicitar 
la negociación de un ARM? ¿Cómo escoge Japón los países con los que negocia ARMs? 
In accordance with Chapter 3, page 28, paragraph 3.4: "Japan has concluded mutual recognition 
agreements of authorized economic operator programs with Canada, the EU, the Republic of 
Korea, Malaysia, New Zealand, Singapore and the United States, under which the Customs Administration, in making their own risk assessment, takes into account the status of members of WT/TPR/M/310/Add.1 
 
- 81 - 
 
authorized economic operator programs of other countries. Japan is holding talks with Switzerland 
on the possibility of concluding mutual recognition programs of authorized economic operators." 
Can Japan explain what the requirements are to conclude an MRA with Japan? Should certain 
requirements be met before starting negotiations? Can any country apply for MRA negotiations? 
How does Japan select the countries with which it negotiates MRAs? 
RESPONSE 
Japan has an intention to enlarge the count ry coverage of MRA on AEO programmes. 
Before launching an MRA consultation, Japan takes into account various elements, such 
as economic relations with potential part ners, and whether a full-fledged operational 
AEO programme is in place for certain duration, in a comprehensive manner. 
4.  De conformidad con el Capítulo 3, página 40, párrafo 3.42: "Son 7.873 fábricas nacionales y 
859 fábricas extranjeras de 21 países y economías las que han sido certificadas para utilizar 
marcas JIS (Sistema de marcas JIS). Este sistema es voluntario, a menos que los reglamentos pertinentes lo exijan para las ventas en el país". 
Podría Japón informarnos, ¿Qué sucede, en el caso de los productos que ya se comercializan en el 
Japón, cuando un nuevo reglamento establece que se debe cumplir con el Sistema de marcas JIS para ese tipo de productos? y ¿Cuál sería el procedimiento que se debería seguir y los plazos para 
su adopción? 
In accordance with Chapter 3, page 40, paragraph 3.42: "There are 7,873 domestic factories and 
859 foreign factories from 21 countries and economies that have been certified to use JIS trademarks (JIS mark system). This system is voluntary, unless the relevant regulations require it 
for sales in the country." 
Can Japan inform us, what happens in the case of products already being sold in Japan, when a 
new regulation requires compliance with the JIS Mark System for such products? And what would 
be the procedure that should be followed and the deadlines for adoption? 
RESPONSE 
Where new regulations require compliance with  the JIS, Japan provides a reasonable 
interval between the publication of regulati ons and entry into force in order to allow 
time for relevant products to be certified by  JIS in accordance with the TBT Agreement. 
After this transition time, Japan would on ly allow products with JIS certification 
to be sold. 
5.  De conformidad con el Capítulo 3, página  50, párrafo 3.81: "La Orden de Control de las 
exportaciones también comprende las exportaciones de varios productos agrícolas, pesqueros y forestales a todas las regiones que requieren la autorización del METI. En estos casos, el Ministerio 
está obligado a obtener el consentimiento del MAFF antes de otorgar una licencia". 
Podría Japón señalarnos, ¿Qué criterios son considerados por parte del MAFF para otorgar su 
respectivo consentimiento, y sobre qué requisitos sustantivos (disposiciones normativas) se 
sustenta esta licencia de exportación? 
In accordance with Chapter 3, page 50, paragraph 3.81: "The export Control Order also includes 
exports of various agricultural, fishery and forestry products to all regions which require METI authorization. In these cases, the Ministry is oblig ed to obtain the consent of MAFF before granting 
a license.". 
Can Japan point out, what criteria is considered by the MAFF to grant its consent, and on what 
substantive requirements (regulatory provisions) the export license is based? 
RESPONSE 
MAFF checks that the export will not have a negative impact on the adjustment 
of domestic supply and demand or the pres ervation of exhaustible natural resources, WT/TPR/M/310/Add.1 
 
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 and gives its consent. Thereafter METI exam ines the consistency between the contract 
regarding the export and the application, and grants export license based on the 
Article 2 of the Export Trade Control Order. 
6.  De conformidad con el Capítulo 3, página 55, párrafo 3.96: "El impuesto sobre las 
sociedades se aplica a los ingresos obtenidos en todo el mundo por las sociedades nacionales (es decir, aquellas con sede en el Japón, que, conforme al Código de Comercio, son todas las sociedades constituidas en el Japón)". 
Podría Japón informarnos, ¿Si los Tratados de Dobl e Tributación, suscritos por el Japón, permiten 
en el caso de este impuesto, la posibilidad de aminorar la doble tributación internacional, cómo se 
implementa esta posibilidad de ser el caso? 
In accordance with Chapter 3, page 55, paragraph 3.96: "The corporate tax applies to income 
earned worldwide by national companies (i.e., those based in Japan, which, according to the 
Commercial Code, are all companies incorporated in Japan).". 
C a n  J a p a n  i n f o r m  u s ,  i f  D o u b l e  T a x a t i o n  T r e a t i e s ,  s i g n e d  b y  J a p a n ,  a l l o w  i n  c a s e  o f  t h i s  t a x ,  
to reduce the possibility of international double taxation? How this possibility is implemented if this 
is the case? 
RESPONSE 
Tax treaties to which Japan is the party cl arify the scope of taxable income in the 
country where income arises and provide provisions for the implementation of foreign 
tax credit system. For example, under the fo reign tax credit system, for countries with 
which Japan has tax treaties, the foreign tax paid based on the income a Japanese resident derives from another country shall be treated as a credit with regards to the 
Japanese tax imposed on that resident once they satisfy certain conditions. 
7.  De conformidad con el Capítulo 3, páginas 57 - 58, párrafo 3.106, nota a) al cuadro 3.13: 
"Impuestos especiales sobre el consumo", en lo referente al impuesto sobre las bebidas alcohólicas 
y el tipo reducido de impuesto al tabaco "a El  tipo reducido del impuesto sobre el tabaco es 
aplicable a un número limitado de marcas de cigarrillos de 3ª calidad¼¼, y todas ellas son propiedad de Japan Tobacco". 
Podría Japón indicarnos, ¿Cómo la aplicación de un impuesto reducido al tabaco producido por la 
Empresa Comercial del Estado Japan Tobacco se ajusta a las disposiciones en materia de trato 
nacional, si los tabacos importados, independientemente de la calidad que se le atribuya, estarían sujetos a un impuesto superior al aplicado a los tabacos fabricados por esa empresa, que bien 
podrían ser considerados como similares, directamente competidores o sustituibles? y 
¿Qué criterios se utilizaron para establecer valores diferenciados por concepto del impuesto especial sobre el consumo de bebidas alcohólicas (¥/kl), dependiendo del tipo de bebida? 
Inclusive, en algunos casos, se consideran valores adicionales vinculados al contenido de grado 
porcentual alcohólico. Partiendo del hecho de que Japón es un productor de Sake, podría explicarnos, ¿Cómo ese impuesto diferenciado gravado a las bebidas alcohólicas se ajusta a las disposiciones en materia de trato nacional? 
In accordance with Chapter 3, pages 57-58, paragraph 3.106, note a) to Table 3.13: "Special 
Excise on consumption," in relation to tax on alcoholic beverages and the reduced tax rate on tobacco "the reduced tax rate on tobacco is applicab le to a limited cigarette brand of 3rd quality …, 
and all others are owned by Japan Tobacco.". 
Can Japan indicate how the implementation of a reduced tax on tobacco produced by the 
commercial state enterprise Japan Tobacco conforms to the provisions on national treatment, if 
imported tobacco, regardless of its quality, would be  subject to a higher tax than that applied to 
the tobacco manufactured by that company, which could well be considered as similar, direct competitors or substitutable? And what criteria was used to establish differentiated values for the special excise duty on alcoholic beverages (¥/kl) values, depending on the type of drink? WT/TPR/M/310/Add.1 
 
- 83 - 
 
Even in certain cases, additional values are cons idered linked to alcohol content percentage grade. 
Departing from the fact that Japan is a producer of Sake, can you explain, how such differential tax levied on alcoholic beverages complies with the provisions on national treatment?   
RESPONSE 
(The answer for the question about tobacco tax) 
  In order to ensure compliance with the provisions concerning "national treatment", 
Japan has decided to phase out preferential tax treatment for "former third class 
cigarettes" and submitted a relevant bill to the Diet.   (The answer for the question about liquor tax) 
 
In order to tax alcoholic beverages as fairly  as possible, the Liquor Tax Act classifies 
alcoholic 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 va rious factors, including how items in each 
category are produced or consumed. 
 The Liquor Tax Act does not differentiate al coholic beverages into categories based on 
whether they are domestic or imported produc ts. The same rate applies to all the items 
classified in the same category regardless of  whether they are domestically produced or 
imported.  
8.  De conformidad al Capítulo 3, página 60, cuadro 3.14 Empresas Comerciales del Estado 
notificadas de conformidad con el artículo XVII, en relación a las actividades del Ministerio de Agricultura, Silvicultura y Pesca MAFF, el MAFF lleva a cabo casi todas las importaciones de arroz, 
trigo y cebada. 
Según la notificación G/AG/N/JPN/196 de Japón, las importaciones de los tres productos 
mencionados estarían sujetas a contingentes arancelarios. En este caso, podría Japón explicarnos, ¿Cómo se asignan los contingentes de importación y cómo esta asignación se justifica a la luz de 
las disposiciones contenidas en el Artículo XIII del GATT de 1994? 
In accordance with Chapter 3, page 60, Table 3.14, Commercial State Enterprises, notified in 
accordance with Article XVII, in relation to the acti vities of the Ministry of Agriculture, Forestry and 
Fisheries (MAFF), MAFF carried out almost all imports of rice, wheat and barley. 
According to Japan Notification G/AG/N/JPN/196, imports of the aforementioned three products 
would be subject to tariff quotas. In this case, can Japan explain to us how import quotas are 
allocated and how this allocation is justified in light of the provisions contained in Article XIII of the 
GATT 1994? 
RESPONSE 
The import of rice, wheat and barley is ca rried out through competitive tenders taking 
into consideration demands from domestic cu stomers and export capacity of exporting 
countries.  
Therefore, it does not accord discriminatory  treatment to any countries and, in this 
sense, it consists with Article XIII of the GATT 1994.  
9.  De conformidad al Capítulo 4, página 82, párrafo 4.16, respecto a los programas para 
promover la limitación de la producción de arro z y leche. Podría Japón explicarnos, ¿Cuál es el 
contenido de las políticas de restricción de la producción de arroz y leche y su compatibilidad con el artículo 11b) del Acuerdo sobre Salvaguardias, relativo a las limitaciones voluntarias de las 
exportaciones? 
In accordance with Chapter 4, page 82, paragraph 4.16, regarding programs to promote limiting 
the production of rice and milk. Can Japan explain, what is the content of the policies restricting WT/TPR/M/310/Add.1 
 
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 rice and milk production and their compatibility with Article 11b) of the Safeguards Agreement on 
voluntary export restraints? 
RESPONSE 
 
1)  These programs are operated to matc h supply and demand of each product in 
Japan as much as possible.  
 With regard to rice, farmers can decide whether to join production adjustment 
program. 
 With regard to milk, the program is operated on a voluntary basis by milk 
producers organization. 
 The government does not impose producti on limitation on farmers or producers 
through these programs. 
2)  With regard to rice and milk, the government does not take any voluntary export 
restraints, therefore it complies with Articl e 11 1.(b) of the Agreement on Safeguards. 
 10.  De conformidad al Capítulo 4, página 88, párrafo 4.34: "El programa de pagos de 
sostenimiento de los ingresos agrícolas para el arroz consta de dos componentes: el primero 
consiste en el pago de 15.000 yenes por 0,1 ha. de cultivos de arroz; el segundo se activa cuando el precio al productor cae por debajo del promedio de los tres años comprendidos entre 2006 y 2008.". 
 
Podría Japón explicarnos, ¿Cuál es la razón por la cual se escogió ese periodo y si éste varía año a año o es un período constante? 
In accordance with Chapter 4, page 88, paragraph 4.34: "The program of support payments of 
farm income for rice consists of two components: the first is paying 15,000 yen per 0.1 ha. rice crop; the second is activated when the producer price falls below the average of the three years 
between 2006 and 2008.". 
Can Japan explain the reason this period was chosen and whether it varies from year to year or is 
a constant period? 
RESPONSE 
Japan used the average of data in the past th ree years from 2006 to 2008, at the time of 
designing the second component. The period had been constant until the second component was abolished in 2014 crop year. 
ADDITIONAL QUESTIONS 
 Informe de Secretaría 
 1.  Capítulo 3.1.8 Medidas sanitarias y fitosanitarias, numeral 3.47: Se considera necesario que se especifique cuáles son las actualizaciones respecto al listado de plagas cuarentenarias y no cuarentenarias. Además se requiere conocer cuáles son los procedimientos de cuarentena que se 
aplican para el ingreso de los productos agropecuarios. 
Chapter 3.1.8 Sanitary and Phytosanitary Measures, paragraph 3.47: It is necessary to specify 
what the updates with regard to the list of pest quarantine and non-quarantine are. And also it is 
necessary to know what the procedures of inspection applied to the importation of agricultural 
products are. WT/TPR/M/310/Add.1 
 
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RESPONSE 
 Regarding the updates on the quarantine pe st list and the non-quarantine pest list, 
please refer to the SPS notification (G/SPS/N/JPN/316/Add.1, 11 March 2014). 
Regarding the procedures of inspection a pplied to the importation of agricultural 
products, please refer to the Database for importing conditions (http://www.pps.go.jp/eximlist/view/exp/conditionE.html). 
 
2. Numeral 3.54: Se requiere conocer la razón por la cual no se ha acreditado a ningún laboratorio extranjero, y cuál es la metodología que emplea para los productos no procesados. 
Paragraph 3.54: It is necessary to know why Japan has not authorized any foreign laboratory, and 
what is the methodology used for non-processed products? 
RESPONSE 
In the area of animal health and plant heal th, the government of Japan does not require 
the accreditation of laboratory in exporting countries. 
 Regarding animal health, in order to prev ent entrance of diseases, Japan requests 
exporting countries to attach a sanitary certificate issued by the veterinary authority of 
exporting countries based on the animal heal th requirements estab lished bilaterally, and 
conducts import inspection.  
Regarding plant health, in order to prevent en trance of pests, Japan requests exporting 
countries to attach a phytosanitary certificat e issued by the Nation al Plant Protection 
Organization of exporting count ries based on the IPPC, and conducts import inspection. 
3.  Numeral 3.56 Primer párrafo: Se requiere conocer si existe algún otro tipo de normativa que 
deben cumplir los productos orgánico además de la normativa orgánica JAS para poder comercializar a nivel nacional". 
Paragraph 3.56 First paragraph: It is necessary to know if there are any other rules to be met by 
organic products in addition to the JAS organic standards for marketing at national level ". 
RESPONSE 
To be labelled as "organic", the products ar en't required to conform to any rules other 
than the rules for organic JAS. 
4.  Se solicita que Japón proporcione mayor información sobre el tema fitozoosanitario en su 
país. 
It is requested that Japan should provide more information on the phytozoosanitary topic in your 
country. 
RESPONSE 
Regarding animal health, Japan sends notifica tion on the occurrence of an outbreak of 
disease to the OIE in accordance with the OIE code. Please refer to the World Animal 
Health Information System (WAHIS) website: http://www.oie.int/wahis_2/pub lic/wahid.php/Wahidhome/Home  
 
Regarding plant health, Japan notifies other co untries of information on the Official Pest 
Report, Description of the NPPO, List of Re gulated Pests, etc. based on the IPPC. The 
information is available on the following IPPC website; 
https://www.ippc.int/countries/japan . 
 WT/TPR/M/310/Add.1 
 
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 ADDITIONAL QUESTION(S) 
  Informe de Secretaría 
 
Con respecto al párrafo 3.24, pp. 35, donde la Secretaría manifiesta que el Japón aplica 
restricciones cuantitativas a las importaciones (contingentes de importación), que se "ajustan a los Acuerdos de la OMC": 
 
With respect to paragraph 3.24, P. 35, where the Secretariat said that Japan quantitative restrictions on imports (import quotas), which is "consistent with the WTO Agreements":  
Podría Japón 
 
Could Japan answer to the series of question below:  
 
Pregunta 
 
1.  ¿Especificar cuáles son los productos que se encuentran sujetos a esos contingentes, a parte 
de los productos de la pesca y las sustancias que agotan la capa de ozono?   Question 
 1.  Could Japan Specify which products are subject to these quotas, apart from fishery products and substances that deplete the ozone layer? 
 
RESPONSE  
There are no products which are subject to th ese quotas other than fishery products and 
substances that deplete the ozone layer. 
 Pregunta 
 2.  ¿El procedimiento para la administración de los contingentes arancelarios se encuentra 
publicado en alguna gaceta oficial? 
 Question 
 2.  Is the procedure for the administration of ta riff quotas is published in an official gazette? 
 
RESPONSE 
 The Cabinet Order on Tariff Quotas which stip ulates the quantity and product coverage 
of tariff quotas is published in an of ficial gazette whenever it is amended. 
 
Pregunta 
 
3.  ¿Existe alguna evaluación de la tasa de utilización de los contingentes? 
 Question 
 3.  Is there any evaluation of the rate of utilization of quotas?  RESPONSE 
 
There is no formal system to evaluate the rate of utilization of import quota. However, 
the government of Japan monitors the tren d in import of products under the quota 
including the rate of utilization of the quota and related information for the purpose 
of sustainable use, conservation and manage ment of fishery products, useful natural 
resources. 
 WT/TPR/M/310/Add.1 
 
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Pregunta 
 
4.  ¿Existen productos que tienen tasas nulas de utilización y están sujetos a medidas sanitarias y fitosanitarias, podría informarnos qué productos son éstos? 
 
Question 
 
4.  Are there any products that have zero use tax and are subject to sanitary and phytosanitary 
measures? Could Japan tell which products are these?  RESPONSE 
 
In case fishery products subject to impo rt quota are imported as food for human 
consumption, the products will be inspected for food safety purpose.  
 
Con respecto al párrafo 3.34, pp. 57, del Informe de Secretaría, donde se establecen las principales leyes relativas a las normas y los reglamentos técnicos; correspondiente a la Ley sobre 
la normalización y el etiquetado correcto de los productos agrícolas y forestales; y la Ley de 
seguridad de los productos de consumo:  With respect to paragraph 3.34, P. 57 of the Secretariat Report, where the main laws relating 
to standards and technical regulations are established; corresponding to the Law Concerning 
Standardization and Proper Labeling of Agricultural and Forestry Products; Law and safety of consumer products: 
 
Pregunta 
 
5.  ¿Cuál es el proceso de aprobación de estos reglamentos técnicos? 
 Question 
 
5.  What is the approval process of these technical regulations? 
 RESPONSE 
 
In regard to technical regulations of JAS,  proposal for establishment, revising or 
abolishment is prepared the Original Proposa l Preparation Body. After proposal, public 
comments for the proposal are invited. Then, the JAS council deliberates the proposal in 
which the submitted comments are taken into consideration. Finally, public 
announcement is carried out by publication in the Official Gazette. (See Chart 3.5 
Flowchart of JAS developing bodies) 
 
Consumer Product Safety Act designates pr oducts with higher probability of causing 
danger particularly to the lives or bodies of general consumers as "specified products" 
and requires the Competent Minister to esta blish the technical requirements necessary 
for preventing this kind of danger.  
Con respecto al párrafo 3.27, pp. 36, del Informe de Secretaría sobre el "sistema de confirmación 
previa", necesaria para la importación de productos que se consideran "de alto riesgo" o sobre los que "anteriormente se han presentado declaraciones fraudulentas", por parte del "Ministro de Economía, Comercio e Industria, o de otros ministros competentes", entre los cuáles se encuentra 
el Atún: 
 With respect to paragraph 3.27, P.36, the Secret ariat Report on "prior confirmation system" 
required for the import of products considered "high risk" or that "above are presented fraudulent 
statements" by the "Minister of Economy, Trade an d Industry, or other relevant ministers", among 
which is the tuna.  
 
Pregunta 
 6.  ¿Cómo funciona el proceso de "confirmación previa" para la importación de éstos productos? 
 WT/TPR/M/310/Add.1 
 
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 Question 
 
6.  How does the process of "prior confirmation" for the importation of these products work?  
RESPONSE 
 
Importers in Japan acquire certificates issued  by authorities in exporting countries in 
advance through exporters and apply for prio r confirmations to Japanese authorities 
with the certificates and other documents.  Japanese authorities confirm their validit y before the importation and issue prior 
confirmation certificates to importers. 
 
Pregunta 
 
7.  ¿Qué requisitos son necesarios para que el "Ministro de Economía, Comercio e Industria, o de otros ministros competentes" autorice la importación para productos como el Atún? 
 
Question 
 
7.  What requirements are needed for the "Minister of Economy, Trade and Industry, or other 
relevant ministers" authorize the import products like tuna?  
RESPONSE 
 In the prior confirmation system for import of certain fishery products including tuna, 
based on international fisheries agreemen ts for resource management on species 
including tuna, the Japanese authorities reviews documents such as trade-related 
certificates issued by authorities of the ex porting country to check if the import meets 
the requirements set by the international agreements.  
 
Con respecto al párrafo 3.58, pp. 45, del Informe de Secretaría, en la "Ley sobre condiciones sanitarias de los alimentos" y la "Ley sobre normas agrícolas", para productos modificados 
genéticamente debe indicarse esa condición a través de etiquetado para 8 cultivos y 33 clases de 
productos alimenticios elaborados:  With respect to paragraph 3.58, P. 45, the Secretariat Report on the "Law on sanitary conditions of 
food" and the "Law on agricultural standards" fo r genetically modified organism that condition 
must be indicated by labeling 8 crop products and 33 kinds of processed food products:  
Pregunta 
 
8.  ¿Existe algún nivel o límite establecido para la importación de estos productos, de ser el 
caso, cuáles son esos niveles o límites? 
 Question 
 
8.  Is there a level or limit set for the importation of these products, if any, what are those 
levels or limits?  
RESPONSE 
 Without passing the safety assessment in Japa n, any GM foods and foods using those as 
raw materials, regardless of the amount of those, cannot be imported. 
 Pregunta 
 
9.  ¿Cuál es el mecanismo de identificación para los productos modificados genéticamente y los 
no modificados genéticamente de los 8 cultivos y 33 clases de productos alimenticios elaborados?  WT/TPR/M/310/Add.1 
 
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Question 
 
9.  What is the mechanism of identification for genetically modified products and non- genetically modified products, 8 crops and 33 kinds of processed foods? 
 
RESPONSE  
In Japan, eight designated agricultural pr oducts and 33 categories of their processed 
foods in which recombinant DNA or the re sulting protein still exists even after 
processing are subject to labelling conc erning genetically modified food.  
 
In order to label such products (designate d agricultural products and their processed 
foods) but not being genetically modified as "n ot genetically modified," it is required for 
companies to prepare and provide other comp anies with evidentiary documents, which 
certify that genetically modified and non-gene tically modified agricultural products are 
segregated at the production, dist ribution and processing stages.  
 
A monitoring by regulatory authorities on  segregation between genetically modified 
agricultural products and non-GM agricultural  products is generally conducted by these 
documents basis. In addition, scientific veri fication by a qualitative polymerase chain 
reaction method is also conducted in prior to  this monitoring in order to check whether 
they are subject to mandatory labelling. WT/TPR/M/310/Add.1 
 
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 8.  CHILE 
Documentos: WT/TPR/S/310 y WT/TPR/G/310 
 
3 Políticas y Prácticas Comerciales, por Medidas 
3.1 Medidas que afectan direct amente a las importaciones 
3.1.7 Normas y otras prescripciones técnicas 
  Cuadro 3.3: "Principales leyes relativas a las normas y los reglamentos técnicos". Pregunta: 
¿Por qué la ley de normalización industrial de Japón excluye en su ámbito a los 
medicamentos?  
 Table 3.3: "Main laws relating to standards and technical regulations". Question: Why does 
the Japanese industrial standardization law exclude medicines from its scope? 
RESPONSE 
 Industrial Standardization Act applies to mineral or industrial products except 
medicines, agrochemicals, chemical fertilizer s, silk yarn, agricultural and forestry 
products. Quality, components, performance etc.  of medicines are stipulated in "the Act 
on Securing Quality, Efficacy and Safety  of Pharmaceuticals, Medical Devices, 
Regenerative and Cellular Therapy Products, Gene Therapy Products, and Cosmetics".  
  Párrafo 3.39. Pregunta: ¿Existe un proceso formal y centralizado para revisión y eliminación 
de los reglamentos técnicos y procedimientos de evaluación de la conformidad? 
 Paragraph 3.39. Question: Is there a formal, centralized process for review and removal of 
technical regulations and procedures of conformity assessment? 
RESPONSE 
 
In regard to technical regulations of JA S, proposal for establishment, revision 
or removal is prepared by the Original Pr oposal Preparation Body. After that, public 
comments for the proposal are invited. Then, the JAS council deliberates the proposal, 
taking the submitted comments into consider ation. Finally, public notice is made 
through Official Gazette. (See Chart 3. 5 Flowchart of JAS developing bodies) 
 
In regard to procedures of conformity a ssessment of JAS, public comments for proposal 
are invited. After consideration of the co mments, public notice is made through 
Official Gazette. 
 
 Párrafo 3.42. Pregunta: ¿Existen organizaciones acreditadas extranjeras como organismos 
de certificación de la marca JIS? 
 Paragraph 3.42. Question: Are there foreign organizations accredited as JIS mark certifying 
agencies? 
RESPONSE 
 
There are 2 foreign accredited certification bodies in Korea and 1 foreign accredited 
certification body in Australia in JIS mark certification scheme.  
 Pregunta General: ¿Japón cuenta con Acuerdos  de reconocimiento mutuo o trabajos de 
cooperación regulatoria con otros países? Si es así, ¿Con quiénes y en qué materias? 
 General Question: Does Japan have mutual recognition agreements or regulatory 
cooperation work with other countries? If so, with whom and in what subjects? WT/TPR/M/310/Add.1 
 
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RESPONSE 
 Japan has bilateral Mutual Recognition Agre ements (MRAs) between the United States, 
European Union, Singapore, Philippines and Thailand, etc., respectively. For example, 
Japan-EC MRA covers sectors of telecommuni cations equipment, electrical products, 
good laboratory practice (GLP) for chemical s and good manufacturing practice (GMP) for 
medicinal products.  
 
Please refer to the following website fo r detailed information on Japan-EC MRA. 
http://www.mofa.go.jp/regio n/europe/eu/agreement.html  
 
3.1.8 Medidas sanitari as y fitosanitarias 
  Párrafo 3.47, segundo punto, señala que "Los límites máximos de residuos (LMR) 
provisionales de plaguicidas en los piensos, establecidos con arreglo a la Orden de aplicación 
de las normas relativas a los piensos y aditivos para piensos, han sido revisados recientemente por el MAFF". Preguntas: ¿Los límites máximos de residuos provisionales de 
plaguicidas en los piensos, se basan en alguna norma internacional? ¿Por lo general, Japón utiliza como estándar las normas internacionales para legislar? 
 Paragraph 3.47, second paragraph, states that "The provisional maximum residue limits 
(MRLs) for pesticides in feed, established under the Ordinance for the Enforcement of rules 
on feed and feed additives, were recently re viewed by MAFF." Questions: Are the provisional 
maximum residue levels of pesticides in feed based on any international standard? In 
general, does Japan use international standards to legislate? 
RESPONSE 
 The provisional maximum residue limits (MRLs) of pesticides in feed of Japan set in 
2006 are based on risk assessment. They are basically harmonized with Codex 
standards, but in the case where the MRLs do not conform to the standards, they are based on independent risk assessment.  
Whenever Japan newly establishes or revises MRLs in feed, Japan does based on risk 
assessment and tries to harmonize with Co dex standards to the extent possible. 
 
3.1.9 Prescripciones en materia de etiquetado y envasado 
  Párrafo 3.59. En relación con los cambios introducidos en el sistema de etiquetado de los 
productos alimenticios Pregunta: ¿Podría Japó n especificar los cambios efectuados en el 
etiquetado de productos alimenticios para lactantes? 
 Paragraph 3.59. In relation to the changes introduced in the system of labelling food 
products. Question: Can Japan specify the changes to the labeling of foodstuffs for infants? 
RESPONSE 
 Labelling standards for infant foods are stipulated as follows: 
 
1. The mandatory labelling 
The fact should be labelled on conspicuous parts of the containers and packaging for 
infant foods that standards and specifications for the infant foods are applied. 
2. Omission In case the product is easy to be judged as  infant foods from the labelling (e.g., "Infant 
milk powder"), the previous mand atory labelling may be omitted. WT/TPR/M/310/Add.1 
 
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 3. Prohibition 
Foods other than infant foods are prohibited  for confusing labelling as infant foods. 
3.3 Medidas que afectan a la producción y al comercio 
3.3.2 Subvenciones y ayudas 
 
 Párrafo 3.111, señala que Japón destinó la mayor parte de las ayudas durante el 2013 a la 
reconstrucción tras el gran terremoto del Japón oriental. Pregunta: ¿Japón puede entregar 
más información sobre cómo han sido manejados estos fondos, como también sobre el ajuste al cambio de circunstancias de la entrega de esta ayuda? 
 Paragraph 3.111 states that Japan spent most of its grant aid during 2013 on the 
reconstruction after the Great East Japan Earthquake. Question: Can Japan provide more 
information about how these funds have been managed as well on adjusting to the change of circumstances of the delivery of this assistance? 
RESPONSE 
 
Japan supports the recovery and reconstructi on of disaster-stricken SMEs and micro 
enterprises by providing budgetary mechanis ms in the Post-disaster Reconstruction 
Special Account. 
 Japan has budgeted the following amounts in the Post-disaster Reconstruction Special Account: 
 
FY2012 \ 98.8 billion FY2013 \ 87.7 billion 
FY2014 \ 38.9 billion 
Great East Japan Earthquake occurred on 11 March 2011. 
 
Japan has budgeted the following amounts for SMEs and micro enterprises in the 
general account:  
FY2008 \ 1,086 billion 
FY2009 \ 2,967 billion 
FY2010 \ 830 billion FY2011 \ 2,324 billion 
FY2012 \ 743 billion 
FY2013 \ 521 billion FY2014 \ 487 billion 
The Japanese fiscal year (FY) is from  April to March of the following year. 
 The above-mentioned amounts include the supplementary budget and emergency funds.  
3.3.5 Derechos de propiedad intelectual (DPI) 
3.3.5.6 Indicaciones geográficas  
 Párrafos 3.152 y 3.153. Solicitud: Nos gustaría solicitar más claridad respecto del sistema de 
protección. Particularmente, nos gustaría saber si Pregunta: ¿Se contemplan mecanismos 
para la protección de las indicaciones geográficas extranjeras? 
 Paragraphs 3.152 and 3.153. Application: We would like to request more clarity regarding 
the protection system. In particular, we would like to know if Question: Mechanisms are 
considered for the protection of the foreign geographic indications contemplated? WT/TPR/M/310/Add.1 
 
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RESPONSE 
 Japan has the "Labelling Standard Concerni ng Geographical Indications" based on 
"The Law Concerning Liquor Business Associa tion and Measures for Securing Revenue 
from Liquor Tax" in order to protect th e following geographical indications (GIs) 
identifying liquors (wines, spirits and sake), which includes:  
1. a place of origin of wines and spirit s protected in the territory of the WTO 
members,  
2. a place of origin of wines and spirits in  Japan designated by the Commissioner of 
the National Tax Agency, and 
3. a place of origin of sake designated  by the Commissioner of the National Tax 
Agency. 
3.3.5.8 Observancia 
 
 Párrafo 3.159, referido a la suspensión de importaciones y exportaciones en particular, 
Solicitud: Agradeceríamos proporcionar más información respecto a la existencia de 
contrapesos jurídicos o administrativos a las facultades de las autoridades de Aduanas para 
decretar una suspensión de despacho de mercancías.  
 Paragraph 3.159, based on the suspension of im ports and exports in particular, Application: 
We would appreciate more information about the existence of legal or administrative 
counterbalances to the Customs authorities for imposing a moratorium on the shipping of 
merchandise. 
RESPONSE 
 
Below are stipulated, among other things, in the Customs Act and administrative rulings: 
 Duration of the suspension of the goods; 
 The transparent procedures for the suspen sion of the release of the goods in 
which Customs seeks opinions and evid ence both from right holders and 
importers/exporters of the goods; and 
 The procedures in which Customs may ask IP  experts, such as lawyers, for their 
opinions for the suspension of the release of the goods if their expertise is 
required. 
 Párrafo 3.160, sobre incautación/denegación de entrada en frontera, Solicitud: 
Agradeceríamos contar con más información respecto al tratamiento de las mercancías en 
tránsito. 
 Paragraph 3.160 on seizure/refusal of entry at the border, Application: We would appreciate 
more information regarding the treatment of goods in transit. 
RESPONSE 
 In addition to importation and exportation, the Customs Act stipulates good in transit as falling within the scope of Customs IPR enforcement.  
 WT/TPR/M/310/Add.1 
 
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 9. CANADA 
Report by Japan - WT/TPR/G/310 
 
Question 1 
 Part II. Trade and Investment Policy: (2.1) Overview: paragraph 2.3, page 4 
 
The report highlights Japan's intentions to increase, through its Japan Revitalization Strategy, its 
FTA coverage ratio to 70% by 2018, from a current (2013) figure of 19%.  1. How does Japan intend to reach this goal by 2018? 
2. Has Japan established a list of desired partners to reach this goal? How is Japan prioritizing 
its negotiations? 
3. What plans does Japan have to expedite its FTA negotiations? 
RESPONSE 
 1. Under the Japan Revitalization Strategy, Japan continues to work simultaneously, 
strategically and swiftly on the existing 8 EPA/FTAs negotiations including the Trans-
Pacific Partnership (TPP), the Japan-EU EP A, the Regional Comprehensive Economic 
Partnership (RCEP) and the Japan-China-Repu blic of Korea FTA. Japan hopes for the 
dynamism of stimulating and revitalizing each economic partnership. 
2. In choosing an EPA/FTA negotiation pa rtner and promoting negotiations, Japan 
comprehensively takes into consideration re levant factors including the progress of 
existing negotiations of EPA/FTAs, economic  and diplomatic viewpoints, and situations 
of a possible candidate of an EPA/FTA negotiation partner. 
3. Japan is currently working simultaneously , strategically and swiftly on the existing 
8 EPA/FTAs negotiations. Japan hopes for the dynamism of stimulating and revitalizing 
each economic partnership. 
Question 2 
 
Part IV. Japan's Domestic Policies: (4.4) Ag ricultural reform: paragraph 4.18, page 17 
 
Japan notes that "the government has been impl ementing an "Aggressive Agriculture, Forestry, 
and Fisheries" initiative consisting of industrial policy (making agriculture, forestry, and fisheries 
competitive) and regional policy (securing the benefits of multi-functionality of agriculture such as 
preserving land)".  
1. Could Japan provide a list of industrial and re gional policies that have been implemented or 
that will be implemented to make th e forestry sector more competitive? 
2. Could Japan confirm that these industrial and regi onal policies will not give preference to the 
use of domestic wood species and products in a way to be trade-distorting? 
3. Japan's Wood-Use Points Program substantially terminated in September 2014. Is Japan 
planning to implement a new program that would have the similar objective of revitalizing the forest sector? WT/TPR/M/310/Add.1 
 
- 95 - 
 
RESPONSE 
 1. In order to make the forestry sector more competitive, Japan will continue to 
implement the policies such as coordination  and consolidation of forest management 
practices, development of forest road syst em, development and impr ovement of forestry 
machines and training of technical experts. 
2. These policies will not give preference to the use of domestic wood species and 
products in a trade-distorting manner. 
3. Japan is not planning a new program si milar to the Wood Use Points Program. 
Report by the Secretariat – WT/TPR/S/310 
 
Question 3 
 
Part I. Economic Environment: (1.3 ) Outlook: paragraph 1.27, page 18 
 
The Secretariat report states that regulatory reforms are expected for the newly created National Strategic Special Zones (NSSZ).  
 
1. Could Japan explain what concrete measures have actually been implemented in the 
six zones to date, and elaborate on which measures have been particularly effective? 
RESPONSE 
 
The Act on National Strategic Special Zones (NSSZ) of 2013 includes regulatory reforms 
in the areas of medical care, employme nt, education, urban regeneration and 
development, agriculture, and utilization of historic buildings. The examples included in 
each Zone Plan are as follows:  
A. Tokyo and Kansai areas: i) accelerate d assessment procedures for advanced 
medical treatment of medicines approved in six Western countries, which have not 
yet been approved in Japan, in specific h ospitals or medical centers, ii) exceptional 
measures on regulations on the number of beds for providing high-standard 
medical care services, and iii) establishi ng the Employment Co nsultation Center 
which provides individual consultati on service based on the "Employment 
Guidelines"(published in April 2014), in order to support foreign companies and 
ventures business through clarifying the co nditions of employment and work (The 
centers were established in both areas in January 2015.), 
B. Niigata and Yabu cities: i) exceptiona l measures concerning agricultural 
production corporations so that privat e companies will enter in agricultural 
business, and ii) exceptional measures conc erning the procedures on the transfer 
of farmland is managed by mayors, not by municipal agricultural committees, 
C. Fukuoka city: i) establishing the Em ployment Consultation Center in 
November 2014, and ii) deregulation on the exclusive use of road for making MICE 
more attractive and promoted. 
So far, the outcome of the project utilizing these exceptional measures are as follows: 
 
 Number of transfers of farmland in Yabu  City (from Sep.to Dec. 2014): 14 (1.7ha) 
 Number of consultations at three Employment Consultation Centers 
(as of Jan. 2015): 142. WT/TPR/M/310/Add.1 
 
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 Question 4 
 
Part II. Trade and Investment Regime: (2.1 ) General framework: table 2.1, page 19 
 
The Secretariat report notes Japan has recently amended several pieces of trade related 
legislation.  
Canada seeks further information on the nature and scope of the recent amendments made to the 
following laws, and how they impact both Japan's trade commitments and current trade and investment regime: 
I. Act on Special Measures Concerning the Handling of Legal Services by Foreign 
Lawyers (1986 Law No. 66),  
II. Construction Business Act (1949 Law No. 100); and  III. Certified Public Accountants Act (1948 Law No. 103). 
 
RESPONSE  
I.  Act on Special Measures Concerning the Handling of Legal Services by Foreign 
Lawyers (1986 Law No. 66) 
 
The content of this amendment is that a fo reign lawyer registered under the laws and 
regulations of Japan is allowed to esta blish a legal professional corporation 
(''Gaikokuho-jimu-Bengosi-hojin '') to provide legal services concerning foreign laws. 
 
This amendment has effect on fo llowing Japan's trade commitments. 
 Sector or subsector legal advisory services on law of jurisdiction where the service 
supplier is a qualified lawyer 
 Limitations on market access 
 (1) None except: "services must be supplied by a natural person" 
 (3) None except that "services mu st be supplied by a natural person" 
 II. Construction Business Act (1949 Law No. 100) 
 In 2014, the following amendments were made to Construction Business Act; firstly, for 
securing construction business workers, th e responsibility of construction business 
operators and their groups to ensure and nurture construction business workers and 
that of the Minister of Land, Infrastructu re, Transport and Tourism to support such 
activities were stipulated. Secondly, fo r ensuring adequate working structure, 
demolition work category was added to the work type categorization for the 
construction business licenses, and provisions  to exclude organized crime groups from 
those having construction licen se provided were stipulated. 
 
These amendments were aimed to ensure co nstruction business workers and adequate 
implementation of the construction works in  Japan, which would not directly impact 
Japan's trade commitments and current trade and investment regime. 
 
III.  Certified Public Accountants Act  
 Certified Public Accountants Act was amende d lastly in 2007. The amendment includes: 
1) enhancement of service qu ality control, governance an d disclosure of an audit 
corporation, 2) enhancement of indepe ndence and status of an auditor, 
3) re-examination of the supervision of an audit corporation and responsibility. 
 WT/TPR/M/310/Add.1 
 
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Question 5 
 
Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
imports; (3.1.7) Standards and other techni cal requirements: paragraph 3.33, page 33 
 
The Secretariat notes that the Telecommunications Business Act and the Radio Act were amended in 2014 and notably that the Radio Act includes provisions relating to technical regulations, 
conformity assessment and certification of radio equipment.  
 1. Can Japan confirm if the amended Telecommunications Business Act and/or the Radio Act contain requirements that conformity assessment bodies be established in Japan in order to be 
recognized? 
RESPONSE 
 
Japan does not require the conformity assessmen t body to be established in Japan. With 
regards to the amendments to the Telecommu nications Business Act and the Radio Act, 
Japan have adopted the framework that allows to affix the same mark that is affixed to 
the radio equipment with a conformity mark, to the product incorporating the 
equipment, and the framework registering the person who intends to operate the business to repair a mobile, etc. These amen dments are not related to conditions for 
accrediting the conformity assessment body. 
 
Question 6 
 
Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
imports; (3.1.7) Standards and other techni cal requirements: paragraph 3.36, page 34 
 
Canada is aware that, in June 2014, Japan pu blished a 'Strategy of SAKIGAKE' aimed at 
shortening the development and review process for innovative pharmaceuticals, medical devices, and regenerative medicines. The strategy includes a Designation System designed to facilitate the regulatory approval of products originating from Japan. 
 
1. When does Japan intend to notify the WT O of regulations with respect to the AKIGAKE 
strategy? Can Japan explain how it intends to meet its national treatment obligations with respect 
to the strategy? 
RESPONSE 
 
First, in the SAKIGAKE strategy (hereinafter referred to as "Strategy"), Japan intends to 
facilitate the regulatory approval of the prod ucts which is applied in Japan first in the 
world (including simultaneous applications to Japan and to other countries), and the 
Strategy targets the products not only origin ated from Japan but also the products from 
all over the world.  
 One of the criteria for designation in the St rategy, "having developed firstly in Japan and 
anticipating an application for approvals  
(http://www.mhlw.go.jp/english/policy/ health-medical/pharmaceuticals/dl/140729-
01-01.pdf)", means that the medical products should be planned to apply for approval in 
Japan earlier than in any other country (inclu ding simultaneous application to Japan and 
to other countries), although the details of the designation requirements for the Strategy are still under discussi on. Therefore, the strategy will not discriminate between 
products developed in Japan and other countries.  
 
Also from a practical stand point, the criter ia for designation does not get prohibitive 
standards for foreign applicants who develo p relevant products in its own country. 
Therefore we believe the Strategy meets na tional treatment obligations in the WTO 
Agreement.  
Japan will notify it in case it is required by the WTO Agreement. 
 WT/TPR/M/310/Add.1 
 
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 Question 7 
 
Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
imports; (3.1.7) Standards and other tec hnical requirements: paragraphs 3.37-3.39, 
page 35 
 In its previous Report ( Trade Policy Review 2013) the Secretariat  noted that as of 2011, 46 of 
Japan's safety regulations for motor vehicles were considered to be equivalent to international 
standards.  1. Can Japan provide an update of this figure and confirm how many of these correspond to 
UNECE regulations (1958 Agreement) or Global Technical Regulations (1998 Agreement)?  
2. For those remaining Japanese safety standards not corresponding to or equivalent to 
international standards, is it Japan's intention to align these with UNECE safety regulations? Would 
this also include environmental regulations for motor vehicles? 
3. Could Japan provide more information with respect to which safety standards specifically 
align with UNECE standards and which remain specific to Japanese regulations?  
4. Is Japan planning to fully align with UNECE standards? 
RESPONSE 
 1.  As of 2015, Japan adopted 54 UN Regula tions (1958 Agreement) and 9 UN Global 
Technical Regulations (1998 Agreement).  
 2.  With regard to regulations for road ve hicles, aiming at disseminating safer and 
more environment-friendly vehicle regu lations and promoting more efficient 
international distribution of vehicles, equi pment and parts, Japan has been actively 
working in line with the 1958 Agreem ent and 1998 Agreement including the 
international harmonization of regulations. Japan intends to adopt UN Regulations and 
UN Global Technical Regulations including en vironmental regulations in accordance with 
its priorities, taking into account the impact on safety and the environment, the economic ramifications of harmonization, et c. For this, Japan will work actively to 
promote the adoption of UN Regulations and UN Global Technical Regulations while, as 
appropriate, proposing necessary amendments  to those Regulations at the World Forum 
for Harmonization of Vehicle Regulations under the UN.  
 
3. Japan adopted 54 UN Regulations (1958  Agreement) and 9 UN Global Technical 
Regulations (1998 Agreement) as of 2015. For more information, the status of the 1958 
Agreement and 1998 Agreement including the st atus of the regulation Japan adopted is 
updated at the following website of the World Forum for Harmonization of Vehicle 
Regulations under the UN.   
1958 Agreement:  
http://www.unece.org/trans/main/wp29/wp29wgs/wp29gen/wp29fdocstts.html  
1998 Agreement:  
http://www.unece.org/trans/main/wp29/ wp29wgs/wp29gen/wp29glob_stts.html  
 
4. Japan will work actively to promot e the adoption of UN Regulations (1958 
Agreement) and UN Global Technical Regulations (1998 Agreement) while, as 
appropriate, proposing necessary amendments  to those regulations at the World Forum 
for Harmonization of Vehicle Regulations under the UN. 
 
Question 8 
 
Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
imports; (3.1.7) Standards and other technica l requirements: chart 3.4 and 3.5, page 37 
 In flowcharts 3.4 and 3.5 Japan describes the JIS and JAS standard development process. 
 WT/TPR/M/310/Add.1 
 
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1. Can Japan explain the role and share info rmation about membership of the JIS and JAS 
advisory committees involved in the development of national standards and technical regulations? 
RESPONSE 
 
In the case of JIS, as shown in Chart 3.4,  the competent Minister submits JIS drafts, 
proposed by any interested parties such as in dustries, to Japanese Industrial Standards 
Committee (JISC) for deliberation. Then, boar ds or technical committees of JISC, which 
is composed of members from industries, pe rsons having an academic background and 
consumers, deliberates JIS drafts and repo rts the results of the deliberation to the 
competent Minister. After that, the competent Minister establishes JISs.  
For the enactment of JAS, the current situatio n and international standards, etc. of the 
agricultural and forestry product shall be  considered. The JAS council deliberates the 
proposal for JAS from these viewpoints in resp onse to consultation by the Minister of 
Agriculture, Forestry and Fisheries. 
JAS council consists of academic expert s, business representatives and consumer 
representatives.  
 
Question 9 
 Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
imports; (3.1.10) Govern ment procurement: paragr aph 3.64 and footnote 44, 
pages 41-42  
The Secretariat Report notes that at the central level, Japan implements several voluntary 
measures in regards to government procurement. Footnote 44 provides a link to a government 
document that further explains such voluntary measures that go beyond Japan's obligations in the 
GPA and are intended to produce greater market access opportunities. According to this document, 
Japan also takes various sectoral voluntary measures with the aim of increasing access to procurements (including expanding procurement of  competitive foreign products and services) in 
sectors such as computers and products and serv ices, telecommunications and public works (see 
section 3 - Voluntary Measures by Individual Sectors).  
 1. Could Japan indicate whether these voluntary measures have been successful at increasing 
foreign participation in the three sectors mentioned? Could Japan provide statistics to this effect? 
The same document referenced in footnote 44 notes that in January 1994, the "Action Plan on 
Reform of the Bidding and Contracting Procedures  f o r  P u b l i c  W o r k s "  i n c l u d e d  a d o p t i o n  b y  t h e  
Cabinet of open and competitive tendering procedures for procurement with "a value above a 
certain threshold" (see section 4.2 – Others – Construction sector).   2. Could Japan indicate the actual threshold to which these voluntary measures apply? 
RESPONSE 
 1. With the aim of expanding procurements  of competitive foreign products and 
services, or ensuring high quality in pu blic works, the Government of Japan has 
implemented the voluntary measures in the sectors of computer products and services, telecommunications and public works to ensu re non-discriminatory, transparent, fair, 
competitive and open public sector procurem ent procedures. As the foreign participation 
in the Japanese public sector depends upon a mix of factors, it is difficult to show the 
effect of the voluntary measures in individu al sectors upon the foreign participation in 
these sectors. 
 
2. According to the "Action Plan on Reform  of the Bidding and Contracting Procedures 
for Public Works", transparent, objective and competitive procurement procedures is 
adopted for the procurement which is not less than the thresholds of 4,500,000 SDR for 
construction services by the central go vernment entities and 15,000,000 SDR for 
construction services by the quasi-governmental agencies, 450,000 SDR for design and 
consulting services by the central govern ment entities and the quasi-governmental 
agencies. WT/TPR/M/310/Add.1 
 
- 100 - 
 
  
 
 On the other hand, Japan actually applie s, under the WTO Government rocurement 
Agreement which Japan is presently compliant with, the threshold for construction services is 4,500,000 SDR for procurement by  some of the independent administrative 
agencies and the government-affiliated corpor ations as well as the central government 
entities. 
 Question 10 
 Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
Imports; (3.1.10) Government procurem ent: paragraph 3.71 and footnote 44, 
pages 42-43 
 
The Secretariat Report states: "As regards Japan's bid-challenge procedures, complaints about procurement procedures by the central government  and public corporations are processed by the 
Office for Government Procurement Challenge System (CHANS) and considered by the 
Government Procurement Review Board (GPRB). Th e Council on Government Procurement Review 
has decided that in principle the procuring entity should follow the recommendations of the GPRB." 
 
1. Could Japan elaborate as to what "in principle" means in regards to whether a procuring 
entity should follow the recommendations of the GPRB? Could Japan explain how such decisions are consistent with Article XVIII 7(b) of the WTO GPA?  
Additionally, in the document cited in footnote 44, two GPRB decisions are cited (see section 4.1 – 
Others - System of complaint review procedures for government procurement grievances). Regarding case 11, the document notes that "A ccordingly, the Review Board recommended that 
the procuring entity terminate the contract relati ng to this case and re-conduct the procurement 
tender without changing the original procurement specifications. Regarding case 12, "the Review 
Board recommended that the procuring entity repeal the contract relating to this case."  
 
2. Could Japan indicate whether the GPRB's decisions in these two cases were accepted and 
implemented by the procuring entiti es implicated in these cases? 
RESPONSE 
 
1.  What "in principle" means is that  a recommendation of the GPRB obliges a 
procuring entity to comply not as a result of enforcement of law but as an enforcement 
of the rule set out in releva nt Cabinet decision. In other words, the procuring entities 
implement the GPRB's recommendations as their own decisions for ensuring the compliance with the Cabinet decision. In fa ct, there have been no cases that the 
procuring entities have not implemented GP RB's recommendations. Since the ministries 
and their public corporations are under the ad ministration or the control of the Cabinet, 
it is natural that they implement the re commendation of the GPRB established by 
Cabinet decision. 
 
2.  Regarding these two cases mentioned in this question, both procuring entities accepted the GPRB's decisions and implemented them. 
 
Question 11 
 
Part III. Trade Policies and Practices by Me asure: (3.1) Measures directly affecting 
imports; (3.1.10) Government pr ocurement: table 3.6, page 43 
 In table 3.6, Japan provides a breakdown of  procurement by product and origin for 2011 
and 2012.  
 1. Could Japan provide a breakdown from its latest procurement statistics as to what the top 
ten services procurements were? 
RESPONSE 
 
The top ten services procurements in 2013 in  terms of total value were as follows. 
 WT/TPR/M/310/Add.1 
 
- 101 - 
 
As the footnote 44 in the Report by  the Secretariat (WT/TPR/S/310) states, 
procurement for public works are excluded from the list and the procurement conducted by sub-central entities are no t calculated in the amount. 
 Type of services, total value （100 million Yen, foreign share (%) 
 
1. Computer and related services, 7,276.4, 1.3 
2. Other, 671.0, 0.2 3. Building-cleaning services, 428.9, 0.0 4. Advertising services, 367.1, 0.0 
5. Telecommunications services, 173.3, 13.5 
6. Publishing and printing services, 166.9, 0.1 7. Market research and public opinion polling services, 156.9, 0.1 
8. Repair services incidental to metal pr oducts, machinery and equipment, 146.7, 8.2 
9. Other land transport services (except Mail transportation by land), 94.8, 0.0 
10. Sewage and refuse disposal, sanitation  and other environmental protection, 92.2, 
0.0 
 Question 12 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectua l Property Rights (IPRs); (3 .3.5.1) Overview: paragraph 
3.130, page 60 
 
Japan's Intellectual Property Policy Vision issued on June 7, 2013 mentions four pillars outlining the measures that should be taken to continue  improvements over the next twenty years, 
including:  
 "… building up a global intellectual property system for enhancing industrial competitiveness through continuing cooperative relationships with advanced countries and countries with emerging 
markets so that the Japanese IP system can become a standard. In addition enhancing assistance 
to Japanese companies to expand into these markets and attract human capital into Japan;" 
 
Additionally, in the Report by Japan (P art IV. Japan's Domestic Policies: (4.2) 
Intellectual Property Rights: paragraph 4.11, page 15), Japan states that three goals 
have been set, including :  
 
"… Making Japan's intellectual property system become a standard in emerging nations in Asia."  1. Has Japan identified or begun working with an y specific nations to establish the Japanese IP 
system as a standard? If so what nations? 
2. Are there any particular aspects of the Japanese IP system that Japan wishes to make a 
standard? If so what is the rationale? 
RESPONSE 
 A s  a n  i m p o r t a n c e  o f  e m e r g i n g  c o u n t r i e s  i n  A s i a  i n c r e a s e s ,  t h e  n u m b e r  o f  p a t e n t  
applications, etc., filed in these countries is likely to increase. Mean while, with regard to 
the status of the improvement of the inte llectual property syst em, some issues have 
been pointed out, including insufficient lega l systems and examination systems in many 
emerging countries in Asia. 
 
In order to improve such an environment in emerging countries in Asia, as well as in 
Japan, Japan will promote the harmonization of practices betweem Japanese examiners 
and the examiners of emerging countries in Asia. In addition, for building and improving 
the infrastructure toward the global develo pment of the intellectual property system, 
Japan will try to expand the framework of  the Patent Prosecution Highway (PPH), 
accelerate examinations, improve the qu ality of examinations and improve the 
information systems for examinations to support globalization .  
 WT/TPR/M/310/Add.1 
 
- 102 - 
 
  
 
 Question 13 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intelle ctual Property Rights (IPRs); (3.3.5.1) Overview: 
paragraph 3.130, page 60 
 Japan's Intellectual Property Policy Vision issued on June 7, 2013 mentions four pillars outlining 
the measures that should be taken to continue  improvements over the next twenty years, 
including:  "… provide support for enhancing intellectual property management by SMEs and venture 
companies by raising awareness of the importance  of IP within SMEs and providing government 
support for IP activities and acquisition of rights for their use overseas;"  
1. Please clarify the type of support, such as  monetary support, legal support, educational 
programs, etc., and scope of support that is considered government support for IP activities and acquisition of rights for use overseas is provided?  
2. What are the qualifications to receive government support?  
RESPONSE 
 See the answer for Q17. 
 
Question 14 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intelle ctual Property Rights (IPRs); (3.3.5.2) Patents: 
paragraphs 3.133, page 60 
 
It is noted that Japan has provided an overview of its process for patent applications.  1. Could Japan provide a detailed overview of how it determines whether a patent meets the 
requirements for industrial applicability, particularly with respect to chemical patents? 
RESPONSE 
 
The following is a list of industrially inapplic able inventions. In principle, regardless of 
technical field, an invention which does not correspond to any of the followings is considered as industrially applicable. The word "industry" is interpreted in a broad 
sense, including mining, agriculture, fisher y, transportation, telecommunications, etc., 
as well as manufacturing.  List of Industrially Inapplicable Inventions is as follows. 
 
(1) Methods of surgery, therapy or diagnosis of humans 
 
(2) Commercially inapplicable inventions (e.g. (i) an invention applied only for 
personal use, such as a method of smoking, (ii) an invention applied only for academic 
or experimental purposes) 
 
(3) Practically inapplicable inventions (e.g . A method for preventing an increase in 
ultraviolet rays associated with the destructio n of the ozone layer by covering the whole 
earth's surface with an ultraviolet ray-absorbing plastic film) 
 WT/TPR/M/310/Add.1 
 
- 103 - 
 
Question 15 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intelle ctual Property Rights (IPRs); (3.3.5.2) Patents: 
paragraph 3.133 and chart 3.7, pages 60-61 
 The Secretariat Report states: "The average period between "Appeal for invalidation" and "Appeal 
decision of invalidation (or to maintain the Registration)" is approximately 9 months." 
 1. Please elaborate on the reasons why the average trial for invalidation takes 9 months. 
2. Are there any limits to the discovery available to the parties in the invalidation trial? If so, 
what are the reasons for these limits? 
3. Our understanding is that a trial for invalidation at the Patent Office is the only way to 
invalidate a granted patent in Japan, and that pa tents cannot be invalidated in the court system by 
Judges. What are the reasons for this? 
4. What are the qualifications to become a trial/appeal examiner and participate in a trial for 
examination? 
RESPONSE 
 1.  Firstly, it takes approx imately 3.5 months from request for trial to the submission 
of a written answer. Then, it takes approx imately 1 month from the submission of a 
written answer to the submission of a no tice of proceeding matters. Next, it takes 
approximately 2 months from the submission of a notice of proceeding matters to the 
conduction of an oral proceeding. And fina lly, it takes approximately 2.5 months from 
the conduction of an oral proceeding to the tr ial decision. Therefore, the average trial for 
invalidation takes 9 months.  
2.  Japan has no discovery system in the invalidation trial. 
 3.  The decision to grant a patent by the examiner of JPO is an only administrative 
disposition which has a public force in Japan.  Therefore, the way to invalidate the patent 
right should be a trial decision as a new admi nistrative disposition. On the other hand, in 
the case of a litigation of infringement, the parties dispute based on the premise of the 
existence of a patent right. Then, the patent  right cannot be invalidated in the court 
system by judges. In conclusion, Japan sepa rates the authority between the court as a 
judicial branch and the JPO as an administrati on. Therefore, the tria l for invalidation is 
the only way to invalidate a patent right. 
 
4.  There are the qualifications to beco me an administrative  judge (trial/appeal 
examiner), such as completion of a statutory training and at least 5 years of experience 
as an examiner in JPO. 
 
Question 16 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intelle ctual Property Rights (IPRs); (3.3.5.2) Patents: 
paragraph 3.138 and chart 3.20, page 62 
 
The Secretariat Report states: "The number of applications for patents made to the JPO was 328,436 in 2013, compared with 342,796 in 2012 (Table 3.20). In 2013, applications originating from Japan represented the vast majority, but a significant proportion came mainly 
from the United States, Germany and the Republic  of Korea. The number of patents granted has 
increased steadily reflecting work by the JPO to reduce patent pendency."  
1. How many of these applications (and the resulting granted patents) are transferred to new 
owners each year (on average)? What is the requirement to record a transfer with the patent office, and if one exists, how is it enforced? WT/TPR/M/310/Add.1 
 
- 104 - 
 
  
 
 2. Does Japan attribute the substantial increase in patent registrations since the last review 
period only to a reduction in patent pendency or are there other factors, and if so, what might they be?  
RESPONSE 
 1.  The number of the transferred gr anted patent rights is as follows: 
 
2005 2006 2007 2008  2009  2010  2011 2012 2013  
17,101 16,349 24,596 20,537 19,779 24,443 24,899 29,182 32,522 
 
Joint request and submission of evidence are re quired for the registration of transfer of 
right with the JPO. 
 
As for the joint request, signatures of bo th assignor and assignee are required on 
request form for transfer of right. In case of  agent, power of attorney must be attached. 
As for the submission of evidence, th e evidence must be original copy. 
 
2.  The increase in patent registrations from 2005 to 2009 is considered to be mainly due to the increase in the number of patent examiners (from about 1200 examiners in 
2004 to about 1700 examiners in 2009), which was designed to shorten the pendency of 
first actions. The increase in patent registra tions from 2009 to 2013 is considered to be 
mainly due to the increase in grant rate. 
 
Question 17 
 Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intelle ctual Property Rights (IPRs); (3.3.5.2) Patents: 
paragraph 3.140, page 62  
The Secretariat Report states: 
 "The government of Japan also supports SMEs on the acquisition of IPRs through the following two 
initiatives: (i) support through consultations to SMEs about their overseas expansion at a support 
centre (e.g. IP comprehensive support counters); and (ii) support in terms of fees, subsidizing half the costs SMEs incur in filing foreign applications  when they are planning to expand their business 
overseas, and reducing search fees by two-thirds where the PCT application is filed in Japanese by 
an individual, a small- or medium-sized enterprise that has commenced business or been 
established less than ten years or a micro-enterprise." 
 
1. How much does it cost - on an annual basis - to subsidize half the costs SMEs incur in filing 
foreign applications and how many SMEs have bene fitted. What are the requirements, if any, for 
benefitting from this subsidy? For example, ho w does Japan determine whether a company is an 
SME and can therefore benefit? 
2. The Report indicates that the support results in a reduction of search fees by two-thirds. 
What is the value of that reduction in Japanese Yen?  
3. How many applicants have benefitted from this support? Does Japan have a breakdown of 
the types of companies that have benefitted from this  support, i.e. if individual people versus SME 
versus micro company, etc.?  
4. How does Japan measure the success of this initiative? Has the initiative made a difference 
in encouraging SMEs to expand overseas and acquire IPRs, and if so, how?  
5 .  D o e s  J a p a n  p r o v i d e  a n y  o t h e r  k i n d s  o f  s u p p o r t  t o  S M E s  i n  r e l a t i o n  t o  I P  a c t i v i t i e s  a n d  
acquisition of IPRs overseas?  WT/TPR/M/310/Add.1 
 
- 105 - 
 
RESPONSE 
 1.  The cost and the number of subsidized fo reign applications on an annual basis are 
as follows: 
 
- Cost:230 million Japanese yen (FY2013) 
- Number of subsidized foreign applications: about 380 (FY2013). 
 
And, the requirement for benefitting from this subsidy is to be SMEs defined in Japanese 
law, and those which are planning to expand into foreign markets.  
2.  Japan patent office requires 70,000 in  Japanese yen as the search fee under the 
PCT. 
 
After the reduction by two-thirds, this search fee is 23,330 in Japanese yen. 
 3.  The number of utilized reduction for search fee under the PCT are as follows. 
 
The total number: about 330 (Apr. 2014-Dec. 2014)   (Breakdown) 
 
For individuals: about 60 (Apr. 2014-Dec. 2014) For SME that has commenced business or been established less than ten years: 
about 200(Apr.2014-Dec.2014) 
For micro company: about 70 (Apr. 2014-Dec. 2014)  
4.  The government of Japan has not analyzed  the effectiveness of these initiatives in 
encouraging SMEs to expand overse as and to acquire IPRs so far. 
 5.  The Government of Japan supports SMEs in  relation to IP activities and acquisition 
of IPRs overseas from various aspects by pr oviding information on intellectual property 
and consultations. 
 
Question 18 
 
Part III. Trade Policies and Pr actices by Measure: (3.3) me asures affecting production 
and trade; (3.3.5) Intellectual Property Righ ts (IPRs); (3.3.5.3) Utility models (UMs): 
paragraph 3.142, page 63  The Secretariat Report states: "A utility model application can be converted into a patent 
application within three years of filing the application." 
 1. Does Japan have any statistics regarding the number of utility models that are converted 
into patent applications within the 3 year period of filing the application? 
 
RESPONSE 
 
Although Japan does not have any statistics regarding the number of utility models that 
are converted into patent applications, it publishes the total number of patent 
applications that are converted from applicat ions for other industrial property rights, 
namely, utility models and industrial designs, in its annual report. The figures in the past 
five years are as follows:  
Year 2009  2010 2011 2012 2013  
Number of patent applications conver ted from other IPRs 118 128 98 96 108 
 WT/TPR/M/310/Add.1 
 
- 106 - 
 
  
 
 Question 19 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectual Property Righ ts (IPRs); (3.3.5.3) Utility models (UMs): 
paragraph 3.144 and table 3.21, page 63 
 The Secretariat Report states: "Nearly all applications for registration of utility models are 
accepted (Table 3.21). This is because for all the applications which have passed the formality 
check, as well as the check of the basic requirements, the registration of the utility model right is instituted without going through a substantive examination of novelty, inventive step, etc."  
1. To what does Japan generally attribute the decline in utility model applications and 
registrations granted?  
2. Does Japan think there is any correlation to the patent registration numbers? 
 
3. Is there a trend away from seeking utility mo del protection in favour of patent protection? 
 
RESPONSE  The utility model system is based on the non-substantive examination principle. 
Recently, users are in favour of stable and re liable rights. Therefore, there seems to be a 
trend away from seeking utility model, and th e numbers of the utility model applications 
and registrations are considered to be decreasing. 
 
Question 20 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intelle ctual Property Rights (I PRs); (3.3.5.4) Designs: 
paragraph 3.146, page 63  
The Secretariat Report states: "Because of the recent difficult economic conditions, design 
applications have decreased but the level of registrations granted by JPO has increased (Table 3.22). Applicants are becoming more selective in filing applications, and more likely to file 
applications with high "registrability" in Japan, which causes the high level of acceptance." 
 1. Please explain why applications have decreased, while the number of registrations granted 
increased? Was there a backlog? 
 RESPONSE  
Backlogs have already been cleared before 2005. As described in the report, it is 
considered that the main reason is that appl icants are becoming more selective in filing 
applications, and more likely to file applicat ions with high "registrability" in Japan. 
 
Question 21 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectua l Property Rights (IPRs); (3 .3.5.5) Trademarks: paragraph 
3.147, page 64  
The Secretariat Report states: "In 2014, Japan's Trademark Act was revised in two respects. First, 
it was revised to expand the scope of protection  by adding non-traditional trademarks such as 
"colour" and "sound" that are already being protected in some foreign countries. Secondly, the Act 
is revised to expand the scope of eligible entities that can register the regional collective 
trademarks by adding associations of commerce and industry, chambers of commerce and industry, and specified non-profit corporations." 
 
1. It is reported that Japan has expanded the sco pe of entities eligible to register collective 
trademarks. Are there entities that remain ineligible? Can Japan provide examples?  WT/TPR/M/310/Add.1 
 
- 107 - 
 
RESPONSE 
 
Although Canada refers to "collective tradem arks", Japan thinks that this question is 
asking about not "collective trademarks" bu t "regional collective trademarks" which we 
expanded the scope of entities last year. If it is correct, there are examples of entities 
that cannot register the region al collective trademarks, name ly individuals, companies, 
general incorporated association, general incorporated foundation, and the like. 
 
Question 22 
 Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectual Property Rights (IPRs); (3.3.5 .6) Geographical indications 
(GIs): paragraphs 3.153, page 65  
It is noted that "the Commissioner of the National Tax Agency designates places where wines, 
spirits, and sake are produced if the GI fulfils the fundamental principle, i.e. that the wines and spirits possess specific characteristics in quality or good reputation and place." 
 
1. Does the Commissioner designate foreign GIs as "GIs" in Japan and if so, how is this done? 
 
RESPONSE 
 
In terms of designation of place of origin of geographical indications in a Member of 
World Trade Organization other than Japa n, the Commissioner of the National Tax 
Agency may designate the place of origin on ly for sake if it fulfils all following 
requirements:  
1. The geographical indication that indicate s the respective place of origin meets the 
definition of geographical indication prescr ibed on the paragraph 1 of article 22 of the 
TRIPS Agreement.  
2. The respective place of origin shall be pr otected as a geographical indication in the 
respective Member country.  
An association which wishes a foreign indica tion for sake to be designated as a GI 
should submit the application form to Nati onal Tax Agency. In case where the applied 
indication satisfies necessary criteria, the Commissioner of National Tax Agency 
designates it as the GI to be protected and announces it to public. 
 In terms of designation of place of origin  of geographical indications for wines and 
spirits, the Commissioner of National Tax Agen cy may designate the place of origin only 
in Japan. Although Japan does not have the de signation system for the place of origin of 
foreign geographical indications, any geograph ical indications for wines and spirits in a 
Member of the World Trade Organization shal l be protected according to the provisions 
on the article 23 of the TRIPS agreement.  
 
Question 23 
 Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectual Property Rights (IPRs); (3.3.5 .6) Geographical indications 
(GIs): paragraphs 3.154, page 65 
 
The Secretariat Report states: "In June 2014, the Act for Protection of Names of Designated Agricultural, Forestry and Fishery Products and Foodstuffs was promulgated. The aim is to protect 
GIs of agricultural products, secure the intere st of producers of such products and thereby 
contribute to the development of the sector, and en sure the interest of consumers. This Act is to 
enter into force by June 2015." 
 
1. Can Japan please provide a detailed overview of this Act including what new rights and protections will be provided and how those new rights and protections will be administered?  
2. What criteria will be used to screen app lications for name protections under this Act? WT/TPR/M/310/Add.1 
 
- 108 - 
 
  
 
 3. Will foreign entities be able to register geographical indications under the Act for Protection 
of Names of Designated Agricultural, Forestry and Fishery Products and Foodstuffs when it comes into force? 
 
RESPONSE 
 
1. The name of registered agricultural, fo restry and fishery products and foodstuffs 
shall be protected as geographical indications.  The Ministry of Agriculture, Forestry and 
Fisheries (MAFF) examines each application for registration. MAFF also implements measures against illicit use of registered GIs pursuant to the GI Act.  
2. The name to be protected shall meet th e definitions of geographical indications 
stipulated in the Art. 22.1 of TRIPS agreement. 
 
3. Foreign entities can submit their applications to MAFF pursuant to the GI Act. 
 Question 24 
 Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectual Property Rights (IPRs); (3.3 .5.7) Copyright: paragraphs 
3.155, page 65 
 
The Secretariat Report states: "In 2012, the Copy right Act was amended on the incidental use of 
copyright works to strengthen the protection against illegally downloading music or film files, 
including criminal penalties." 
 1. Can Japan please describe the nature of the amendment to its Copyright Act regarding 
incidental use, including how it strengthened the protection against illegally downloading music or 
film files in the context of incidental use, and provides details of any judicial cases involving this amendment?  
RESPONSE 
 
A new provision was introduced to the Copy right Act in 2012 to provide limitation of 
exclusive rights to certain incidental uses, in  order to make clear that acts, which could 
appear to violate the law in spite of their non-infringing nature against the interest of the right holders, would not constitute an infringement. 
  
Regarding criminal penalties and an amendment of the Copyright Act in 2012 provided 
for criminal penalties on pe rsons who download copyright infringing digital sound or 
visual recording with reception of an intera ctive transmission for private use, with the 
knowledge of these materials infringing copyri ght or related right. Therefore, the goals 
of these amendments are different.  
(The description in the related section of the Secretariat report does not accurately 
reflect the nature and legislative purpose of the amendments to the Copyright Act.) 
 
Question 25 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures Affecting Production 
and Trade; (3.3.5) Intellect ual Property Rights (IPRs); (3.3.5.8) Enforcement: 
paragraph 3.159, page 66 
 The Secretariat Report states: "The process toward such suspension is initiated upon request for 
suspension of imports and exports to the customs office or on ex-officio. In such cases, the 
customs official is responsible for determining whether there is such an infringement. For goods already imported or produced in Japan, a lawsuit through the courts of first instance is required or, 
if the parties agree, arbitration under the Arbitration Centre for Industrial Property." 
  1. The report provides that the customs official  is responsible for determining whether there is 
infringement. Can Japan please explain what is the nature and scope of the power customs 
officials have in this regard? WT/TPR/M/310/Add.1 
 
- 109 - 
 
2. What are the consequences of a decision that there is infringement, i.e. what happens to the 
goods?   3. Do the courts play any role in the determination of infringement? 
 
4. Is a determination of infringement by a customs official appealable to the courts?  
5. Are there any costs associated with a determination of infringement, and if so, who bears 
those costs? 
 
RESPONSE 
 
1. The nature of the power is that, based on the Customs Act, Customs makes judgment on IPR infringement of the goods th at are to be imported into and exported 
from Japan. The scope of the IPR infrin gement determination covers trademarks, 
copyright and related rights, patents, design s, utility models, PBRs, and on the grounds 
of violation of unfair competition law as for import and export as well as circuit layout 
designs as only for import. 
 
2. As for the infringing goods to be import ed or exported, the importers or exporters 
are given an option to destroy or dispose of the goods. If they do not take the option, 
Customs confiscates and destroys the goods.  The consequence of a decision made in 
judicial proceedings such as civil procedure is subject to plaintiff's claim and judgment 
made by the court. 
 
3. Judicial proceedings (suc h as civil procedure) are conducted by the courts that 
have the authority to determine th e existence of an infringement. 
 
4. Yes. The person who is not satisfied with the decision of Customs may file a suit in 
courts. It is not a prerequisite for filing a suit, but filing a protest against the Director-
General of Customs is also allowed. 
 
5. As for the determination of infringement  at the border, no fee is required by 
Customs, not only from importers and export ers, but also from IP right holders. In 
principle, a defeated party shall bear court costs (Code of Civil Procedure Articles 61) 
(Attorney's fee is not included in the court costs.)  
Question 26 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellect ual Property Rights (IPRs); (3.3.5.8) Enforcement: 
paragraph 3.160, page 66 
 The Secretariat notes that "in FY2013, there were 28,135 cases of seizure/denial of entry at the 
border due to IPR infringement (against 23,280 in 2011), while the number of items seized or 
denied entry went from 728,000 in 2011 to 1.1 million in 2012 and 628,000  in 2013 (Table 3.24)". 
 
1. Can Japan share information about number of items seized, denied entry or detained due to 
non-compliance with technical regulations, standards and conformity assessment procedures?  2. Can Japan describe the procedure and type of information/explanation given to importers 
when a good is seized, denied entry or detained due to non-compliance with technical regulations, 
standards and conformity assessment procedures? Ar e there specified timelines in place to ensure 
importers are promptly provided with the rational e for why the good has been seized, denied entry 
or detained? 
 RESPONSE 
 
1.  Japan does not have information abou t number of items seized, denied entry or 
detained due to non-compliance with techni cal regulations, standards and conformity 
assessment procedures.  
 WT/TPR/M/310/Add.1 
 
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 2. Japan considers that there are not many  regulations that regulatory authorities 
confirm the conformity of the imported good s with relevant technical regulations and 
standards, or require the results of conf ormity assessment at the stage of import. 
With regard to regulations requiring submissi on of the notifications at the stage of 
importing goods (e.g., pharmaceutical prod ucts), a regulatory authority provides 
importers with necessary info rmation in a timely manner. 
 
Question 27 
 
Part IV. Trade Policies in Selected Sectors:  (4.1) Agriculture; (4.1.2) Agricultural 
policies; (4.1.2.1) Legal and institutiona l framework: paragraph 4.11, page 71 
 
Paragraph 4.11 indicates that 2013 review of Basic Plan of Food, Agriculture and Rural Areas  
emphasized the doubling of farm incomes by incr easing demand, improving value chains, reducing 
costs, promoting structural reform and improving productivity- all meant for improving 
competitiveness of the sector. However, in 2011 Japan abolished the minimum farm size  
requirement for income support programs for wheat, barley and soybean producers . This could 
encourage small and elderly farmers to remain in farming, thus hindering the objective of 
structural adjustment toward la rger and more efficient farms. 
 1. Could Japan explain how its income support policies would encourage the structural 
adjustment of the farming sector towa rd larger and more efficient farms? 
 RESPONSE 
 
After reviewing these income support poli cies targeting all farmers who produce 
products for sale, the government decided to implement the policies targeting core-
farmers from 2015 crop year. 
 Question 28 
 
Part IV. Trade Policies in Selected Sectors:  (4.1) Agriculture; (4.1.2) Agricultural 
policies; (4.1.2.1) Legal and institutiona l framework: paragraph 4.13, page 72 
 
The Secretariat report notes that under the Basic Plan that Japan aims to achieve for FY 2020 a 
self-sufficiency target of 50% on a calorie basis and 70% on a production value basis.   
1. As the Basic Plan was introduced in March 2010 could Japan indicate what progress has 
been made to achieve these self-sufficiency targets?  RESPONSE 
 
The Japanese government has promoted producti on of the crops in demand such as rice 
for feed, wheat, soybeans as well as consumpt ion of domestic agricultural, forestry, and 
fishery products in order to  improve Japan's food self-s ufficiency ratio under the 
3
rd Basic Plan for Food, Agriculture and Rura l Areas decided by the Cabinet in 2010 
based on the Food, Agriculture, Rural Ar eas Basic Act. However, the amount of 
production of these crops has not increased considerably, while the consumption of rice 
has fallen steadily. Therefore, the Japanese  government evaluated the present target 
last year, and will revise the target of food self-sufficiency ratio in the 4th Basic Plan 
which will be updated this March based on the result of evaluation. 
 
Question 29 
 
Part IV. Trade Policies in Selected Sectors: (4.6) Transport; (4.6.1) Maritime transport: 
paragraph 4.125, page 104  
Paragraph 4.125 describes Japan's maritime cabotage restrictions, as well as ways other countries 
may access cabotage services on a reciprocal basis.  WT/TPR/M/310/Add.1 
 
- 111 - 
 
1. Can Japan please provide greater clarity with respect to the operation of its ship registration 
regime in general, and specifically, whether foreign owners can register ships on the Japanese registry?  
2. With which countries does Japan have treaties of friendship, commerce and navigation, 
which allow foreign ships to access cabotage services on a reciprocal basis after obtaining a permit form MLIT? 
 
3. Can Japan provide details on the conditions that must be met to obtain a permit from MLIT or any associated costs?  
4. Could Japan please provide additional data (e.g. for the last 5 years) on the number of 
permits issued, by types of vessels, activities  sought and registration of foreign vessels? 
 
RESPONSE 
 
1. Following ships shall be defined as Japanese ships: 
 
 Ships owned by a Japanese Governme nt or Japanese public office; 
 Ships owned by a Japanese national; 
 Ships owned by a company established und er the law of Japan, of which all 
the representatives and not less than  two-thirds of the executives 
administering the affairs are Japanese nationals; 
 Ships owned by a juridical person exce pt above 3 established under the law 
of Japan, of which all the representati ves are Japanese nationals. The person 
or company which does not meet the above requirements cannot own Japanese ships, and the ships owned by those persons or companies cannot 
be registered on the Japanese registry. 
 2. Yes. Japan has treaty of friendship , commerce and navigation with Norway. 
 
3. To obtain the special permission gran ted by the Minister of MLIT-Japan, the 
services should be in line with the following criteria: 
 
 The transportation of passengers or  goods by foreign flagged vessels 
between ports of Japan should not cause any obstacles with a view to ensuring sustainable water transport services in Japan. 
 The transportation of passengers or  goods by foreign flagged vessels 
between ports of Japan should not caus e any obstacles in domestic shipping 
services provided by Japa nese shipping companies. 
 
4. The annual number of special permission issued has been about 3,000 in recent 
years.  
Question 30 
 
Part IV. Trade Policies in Selected Sectors: (4.6) Transport; (4.6.1) Maritime transport: 
table 4.22, page 105 
 The first section of Table 4.22 on page 105 describes the scope of the antitrust immunity in Article 28(4) of the Marine Transportation Law. 
 
1. Do the listed "arrangements or agreements " (i.e. conferences, agreements, discussion 
agreements, stabilization agreements and vessel-sharing agreements and consortia in liner 
shipping and tramp pools in bulk shipping) co mprise the complete list of arrangements or 
agreements that are within the scope of the antitrust immunity? 
 
RESPONSE 
 Japan  examines the legal compliance of the agreements that we re filed by ship 
operators. We will notify the Fair Trade Comm ission of them if we don't find any non-
compliance. WT/TPR/M/310/Add.1 
 
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 In recent years,  there has been about 400 cases including modification and abolishment 
of the agreement per year. 
Question 31 
 
Part IV. Trade Policies in Selected Sectors: (4.6) Transport; (4.6.1) Maritime transport: 
paragraph 4.128, page 105  
Paragraph 4.128 describes the prior notification procedures associated with port transport charges. 
 1. Is private management of all port terminals allowed and open to foreign investors, or only 
those designated for international commerce? 
 
2. What criteria does MLIT use in deciding whether a foreign investor can enter into the port transport sector? 
 
3. Does Japan apply port transport charges in a non-discriminatory fashion?  
4. Does Japan provide access to and use of its ports in a non-discriminatory fashion? 
 RESPONSE 
 
1.  Private management is allowed and op en to eligible investors regardless of 
domestic or foreign in all terminals where ow ners of the public facilities invite bids 
in accordance with Act on Promot ion of Private Finance Initiative. 
(Act on Promotion of Private Finance Initiative:  
http://www8.cao.go.jp/p fi/e/english_pfi.pdf ) 
 
2.  There are no restrictions  on foreign investors in Port and Harbor Transportation 
Business Act. However, it is necessary fo r investors including foreign and domestic 
to have at least enough facilities and wo rkers to deal with a certain quantity of 
cargo prescribed in the Act. 
 
3.  Yes, it's in a non-discriminatory fashion.  In regard to port transport charges, only 
prior notification procedures are required in accordance with Port and Harbor 
Transportation Business Act. 
 4.  Yes, ports facilities can be used in a non-discriminatory fashion.   
 
Question 32 
 Part IV. Trade Policies in Selected Sectors: (4.6) Transport; (4.6.1 ) Maritime transport 
(paragraph 4.125, page 104, and paragraph 4. 128, page 105); and (4.6.2) Air transport 
(box 4.7, page 108, and box 4.8, page 111)  
Japan's prior notification requirement and screening procedures under the Foreign Exchange and 
Foreign Trade Law are addressed in the four sections identified.  
1. Can Japan please provide a more detailed explanation of the review procedure for FDI in 
sectors covered by the Foreign Exchange and Foreign Trade Law?  2. Can Japan please outline which criteria are applied when determining whether foreign 
investments are permitted? Are public order and safe ty and national security the only criteria, or 
are there others?  
3. In the transport sector, does the prior no tification and screening procedures under the 
Foreign Exchange and Foreign Trade Law apply to FDI in sectors other than: railway transport, port transport, maritime equipment, and non-transp ort aerial work? If the requirements in the Act 
apply to other transport sub-sectors, please identify those sub-sectors. 
 WT/TPR/M/310/Add.1 
 
- 113 - 
 
RESPONSE 
 
1.  The procedure of prior notification in  regard to inward FDI is stipulated in 
Article 27 of the Foreign Direct Exchange and Foreign Trade Act ("Act"). You can 
obtain the Act with its English translation at the following website. 
http://www.japaneselawtranslation.g o.jp/law/detail/?id=21&vm=04&re=01  
As for the outline of the procedure of the pr ior notification in regard to inward FDI, 
please refer to Box 4.8 (Regulatory fram ework for railway transport in Japan, 
2012) in Trade Policy Review (Report by the Secretariat issued on 19 January 2015) (WT/TPR/S/310). For your reference, following is the flowchart of the procedure; 
 
2.  Under the Foreign Exchange and Foreign Tr ade Act, the screening is conducted from the 
viewpoint of whether the investment may cause the situation listed in the following (a) or (b): 
 
(a)  National security is impaired, the maintenance of public order is disturbed, or the 
protection of public safety is hindered. 
 
(b)  Significant adverse effect is brought to the smooth operation of the Japanese 
economy. 
 
3.  Those are warehousing business （However, oil storage only ）, refrigerated warehousing 
business （However, oil storage only ）, general passenger common carrier business, transport 
facilities services, coastwise transport, inland wate r transport, coastwise ship leasing, air transport. 
 Question 33 
 Part IV. Trade Policies in Selected Sector s: (4.6) Transport; (4.6.2) Air transport 
(box 4.7 page 107) 
 
Box 4.7 includes descriptions of the regulatory  frameworks in a number of air transport sub-
sectors, including limitations in the air freight forwarding and non-transport activities/aerial work 
sub-sectors. 
 1. Can Japan please explain what its specific sensitivities are with respect to the air freight forwarding and non-transport activities/aerial work sub-sectors? 
 WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 
On the basis of Convention on Internationa l Civil Aviation, it is common in so many 
countries to reserve "cabotage", which mean s flights by foreign airlines in their 
domestic areas. 
 Considering the reservation, 'The Civil Ae ronautics Act' in Japan introduces the 
restrictions targeted specifically at foreign investment for air transport services. The 
restriction is also applied to aerial work , because air transport services has thing 
common with aerial work with the exception that the latter does not deal with transport of passengers or cargo. 
 
In addition, the restriction is applied to air freight forwarding in order to ensure a fair 
business activity in Japan and overseas. 
 
ADDITIONAL QUESTIONS FROM CANADA  
Replies provided by Japan to the Adva nce written questions – Canada – p. 66 
 
Question 2 
 
Part IV. Japan's Domestic Policies: (4.4) Ag ricultural reform: paragraph 4.18, page 17 
 Japan notes that "the government has been impl ementing an "Aggressive Agriculture, Forestry, 
and Fisheries" initiative consisting of industrial policy (making agriculture, forestry, and fisheries 
competitive) and regional policy (securing the benefits of multi-functionality of agriculture such as preserving land)". 
 
1. Could Japan provide a list of industrial and regional policies that have been implemented or 
that will be implemented to make th e forestry sector more competitive? 
 
RESPONSE 
 In order to make the forestry sector more competitive, Japan will continue to implement 
the policies such as coordination and conso lidation of forest management practices, 
development of forest road system, development and improv ement of forestry machines 
and training of technical experts. 
 
Follow-up Question 1 
 Japan mentioned the policies that are being implemented to make the forestry sector more 
competitive include coordination and consolidation of forest management practices, development 
of forest road system, development and improv ement of forestry machines and training of 
technical experts. 
 
1. Can Japan provide more detailed information about these policies?  
RESPONSE 
 To improve forestry productivity, it is nece ssary to coordinate and consolidation forest 
practices of multiple forest owners. For this purpose, Japan is training "Forest 
Management Planners," implementing the forest management plan system with 
flexibility, supporting surveys and consen sus-building needed for coordination, and 
promoting identification of forest owners and their boundaries. 
Japan is also accelerating the development of the forestry road system based on a 
combination of three types of forest roads: the "forest road" for general vehicles, "the 
forestry exclusive road" for trucks with ten ton loads, and the "forestry operation road" 
for forestry machinery. It is also traini ng technical experts in the planning and 
construction of forestry road systems. WT/TPR/M/310/Add.1 
 
- 115 - 
 
Besides, Japan is promoting the development and improvem ent of advanced forestry 
machines, and promoting the spread of low- cost and high-efficiency work systems.  
Additionally, to improve the efficiency of forest planting and treatment, new 
technologies such as growing seedlings in containers, simplification of weeding 
practices, and planting with fewer seedlings , are being evaluated on an experimental 
basis. 
 WT/TPR/M/310/Add.1 
 
- 116 - 
 
  
 
 Report by the Secretariat – WT/TPR/S/310 
Replies Provided by Japan to the Advance Written Questions – Canada – p. 74 
Question 14 
 
Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectua l Property Rights (IPRs); (3.3.5.2) Patents: paragraphs 
3.133, page 60 
 
It is noted that Japan has provided an over view of its process for patent applications. 
 
1. Could Japan provide a detailed overview of how it determines whether a patent meets the 
requirements for industrial applicability, particularly with respect to chemical patents? 
 
RESPONSE 
 
The following is a list of industrially inapplic able inventions. In principle, regardless of 
technical field, an invention which does not correspond to any of the followings is 
considered as industrially applicable. The word "industry" is interpreted in a broad 
sense, including mining, agriculture, fisher y, transportation, telecommunications, etc., 
as well as manufacturing. 
 
List of Industrially Inapplicable Inventions is as follows:  1. Methods of surgery, therapy or diagnosis of humans 
 
2. Commercially inapplicable inventions (e.g. (i) an invention applied only for 
personal use, such as a method of smoking, (ii) an invention applied only for academic 
or experimental purposes) 
 3. Practically inapplicable inventions (e.g . A method for preventing an increase in 
ultraviolet rays associated with the destructio n of the ozone layer by covering the whole 
earth's surface with an ultraviolet ray-absorbing plastic film)  Follow-up Questions 2 
 With respect to Japan's Patent Act:  
1. Could Japan provide a detailed overview of  its "enablement" and "written description" 
criteria under Article 36 of the Patent Act?  
2. For example, in connection with the "enablement" requirement, could Japan explain its 
Examination Guidelines (Part I Chapter 1 Requirem ents for Description and Claims, p. 29), which 
state that the patent application should explain how the claimed invention "can be used"? What is the purpose of this requirement? 
 
RESPONSE  
-  Enablement requirement 
 (1) The patent system provides those who have developed and disclosed new 
technologies with protection of inventions by granting an exclusive right under certain 
conditions for a certain period of time. Wh ere the statement of the description is not 
clear, however, the purpose of disclosure to  the public and the objective of the patent 
system cannot be achieved. 
 
(2) Therefore, if "a person skilled in the art" cannot understand how to carry out the 
invention on the basis of teachings in the st atements of the description and drawings, as 
well as the common general knowledge as of th e filing, then, such a description should 
be deemed insufficient for enabling such a person to carry out the invention. WT/TPR/M/310/Add.1 
 
- 117 - 
 
 
(3) "To enable … to work the invention" in  the provision implies being able to make 
and use the product in the case of an invention of a product, being able to use the process in the case of an invention of a proc ess and being able to make a product by the 
process in the case of an invention of a process for producing a product. 
 (4) See the case 13 on the page 67 of the Examination Guidelines Part I Chapter 1 
 
-  Written description requirement  (1) The claimed inventions should not exceed  the scope stated in the description. To 
state in a claim an invention that is not stated in the description means to seek a patent 
protection for an invention which is not di sclosed to the public. Article 36(6)(i) is 
intended to prevent this from happening. 
 
(2) A determination on whether the statem ent of a claim complies with the written 
description requirement shall be made based on comparison and review of the claimed 
invention and the invention stated in the description. 
 (3) In performing the comparison an d review, a substantial correspondence 
relationship between the claimed invention and the invention stated in the description 
shall be examined regardless of the consiste ncy of expression. If it would be enough 
that there is at least consistency of expression, a patent right which has not substantially been disclosed to the public wo uld be established, thus it is against the 
purpose of this provision. 
 (4) Examination for the substantial corresp ondence relationship is performed by 
looking into whether or not the claimed in vention exceeds the scope stated in the 
description in such a way that a person skille d in the art could recognize that a problem 
to be solved by the invention would be actu ally solved. In case determining that the 
claimed invention exceeds the scope stated in the description in such a way that a 
person skilled in the art could recognize that  a problem to be solved by the invention 
would be actually solved, the claimed invention and the invention stated in the description are not corresponding with each  other and the application doesn't comply 
with the written description requirement. 
 The problem to be solved by the invention is in  principle identified from the statement of 
the description. When identifying the "scope st ated in the description in such a way that 
a person skilled in the art could recognize th at a problem to be solved by the invention 
would be actually solved," the common general knowledge as of the filing should be taken into account in addition to all of th e statements of the description and drawings. 
 
(5) See the case 14 on the page 69 of the Examination Guidelines Part I Chapter 1.  
Replies Provided by Japan to the Advance Written Questions – Canada – p. 74 
Question 15 
 Part III. Trade Policies and Practices by Meas ure: (3.3) Measures affecting production 
and trade; (3.3.5) Intellectua l Property Rights (IPRs); (3.3.5.2) Patents: paragraph 
3.133 and chart 3.7, pages 60-61 
 
The Secretariat Report states: "The average period between "Appeal for invalidation" and "Appeal decision of invalidation (or to maintain the Registration)" is approximately 9 months."  
2. Our understanding is that a trial for invalidation at the Patent Office is the only way to 
invalidate a granted patent in Japan, and that pa tents cannot be invalidated in the court system by 
Judges. What are the reasons for this? 
 WT/TPR/M/310/Add.1 
 
- 118 - 
 
  
 
 RESPONSE 
 The decision to grant a patent by the exam iner of JPO is an only administrative 
disposition which has a public force in Japan.  Therefore, the way to invalidate the patent 
right should be a trial decision as a new admi nistrative disposition. On the other hand, in 
the case of a litigation of infringement, the parties dispute based on the premise of the 
existence of a patent right. Then, the patent  right cannot be invalidated in the court 
system by judges. In conclusion, Japan sepa rates the authority between the court as a 
judicial branch and the JPO as an administrati on. Therefore, the tria l for invalidation is 
the only way to invalidate a patent right.  
Follow-up Questions 3 
 
With respect to invalidation trials: 
 
1. Is there any appeal from an invalidation decision by the JPO?   
2. If the invalidation proceeding is separate – does that mean there is not a proceeding that is 
part of the application process? In other words, do es the JPO have a function both as administrator 
and as adjudicator?   
RESPONSE 
 There is an appeal for a trial/appeal decision  (including an invalidation decision) by the 
JPO. When an applicant is dissatisfied with  the decision, he can bring a lawsuit for 
revoking the decision to the IP High Court.  
The JPO decides whether an IP right should be  invalidated as administrator. The IP High 
Court judges whether the decision is correct as adjudicator. When the IP High Court 
judges the decision wrong, the IP High Court remands the case to the JPO. Then, the JPO retry the case. 
 
Replies Provided by Japan to the Advance Written Questions – Canada – p .84 
 
Question 32 
 
Part IV. Trade Policies in Selected Sectors: (4.6) Transport; (4.6.1 ) Maritime transport 
(paragraph 4.125, page 104, and paragraph 4.128, page 105); and (4.6.2) Air transport 
(box 4.7, page 108, and box 4.8, page 111)  Japan's prior notification requirement and screening procedures under the Foreign Exchange and 
Foreign Trade Law are addressed in the four sections identified. 
 2. Can Japan please outline which criteria are applied when determining whether foreign 
investments are permitted? Are public order and safe ty and national security the only criteria, or 
are there others?  
RESPONSE 
 Under the Foreign Exchange and Foreign Trade Act, the screening is conducted from the 
viewpoint of whether the investment may caus e the situation listed in the following (a) 
or (b): 
 (a)  National security is impaired, the mainte nance of public order is disturbed, or the 
protection of public safety is hindered. 
 (b)  Significant adverse effect is brough t to the smooth operation of the Japanese 
economy. 
 WT/TPR/M/310/Add.1 
 
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Follow-up Question 4 
 
In its response, Japan provides the list of factors considered when screening Inward FDI under the Foreign Exchange and Foreign Trade Act: 
 
(a)  National security is impaired, the maintenance of public order is disturbed, or the protection 
of public safety is hindered. 
(b)  Significant adverse effect is brought to the smooth operation of the Japanese economy. 
 
Could Japan please provide details of what would be considered a "significant adverse effect to the smooth operation of the Japanese economy"? 
 
RESPONSE  
Since those are comprehensively and carefully screened by the purpose of the law and 
the individual circumstances of each case, it  is hard to describe sweepingly. For your 
reference, there is no precedent for making  the recommendation of content change or 
discontinuance toward Inward FDI pursuant to  provision "significant adverse effect to 
the smooth operation of the Japanese economy".   Replies Provided by Japan to the Advance Written Questions – Indonesia – p. 128 
 1 Economic Environment 1.2 Trade performance and FDI 
1.2.2 Foreign direct investment 
 Page 16, Para. 1.17 
 "Until recently, the government did not consider attracting FDI a high priority, while the local business community in general considered investment by large foreign companies as a threat. Consequently, Japan's inward FDI is far below that of other major developed economies. The 
continued low level of FDI may also be attributed to factors such as the relatively high cost of 
doing business in Japan; strict and complicated domestic sector regulations; limited availability of risk capital; regulatory barriers; the difficulty involved in hiring qualified employees; and 
impediments to mergers and acquisitions." 
 Question 
 3. Indonesia asks whether Japan intends to remo ve its barriers to inward FDI? If so, how? 
 
RESPONSE 
 
Japan is conducting activities focused on  carrying out the necessary institutional 
reforms with the Council for Promotion of Fo reign Direct Investment in Japan as the 
control tower. For the prompt improvement of environment for inward FDI, the Council 
for Promotion of Foreign Direct Investment in  Japan is considering to identify priority 
tasks, which include but not limited to, strengthening multi-language services, 
cultivating personnel with a global outlook. 
 Incidentally, regarding regulatory barriers, ha ving the basic concept of 'the freedom of 
foreign transactions' and 'the minimum ne cessary control or coordination', Japan 
implements inward FDI regulations from the view point of 'national security', 
'maintenance of public order' and 'protectio n of public safety', etc., complying with 
international rules (the OECD Code of  Liberalization of Capital Movements). 
 
Specifically, under the Foreign Exchange an d Foreign Trade Act, submission of prior 
notification is required for limited industri al sectors listed in the act. Japan handle 
hundreds of notifications per year, and over  the past five years (since 2009), all 
notifications have passed the screening.  WT/TPR/M/310/Add.1 
 
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 Follow-up Question 5 
 
Japan states that "the Council for Promotion of Foreign Investment in Japan is considering to identify priority tasks …". 
 
Is there a timeline that Japan can share of when this list of tasks would be ready to be implemented and shared with us? 
 
RESPONSE  The Council for Promotion of Foreign Direct  Investment in Japan adopted the list of 
tasks, which is called the "Five Promises for Attracting Foreign Businesses to Japan", on 
March 17, 2015.  
Basically, Japan will begin carrying out thes e tasks from FY2015. Please refer to the 
document (http://www.invest-japan.go. jp/en_index.html) for more details. 
 WT/TPR/M/310/Add.1 
 
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10.  PHILIPPINES 
1. Under Economic Environment, paragraph 1.18,  the Secretariat report indicated that Japan 
aims to double the outstanding amount of FDI by foreign companies to ¥35 trillion by 2020 through tax incentives and a cut in corporate tax (currently 30%) to stimulate this group.  
 
Could Japan please cite the sectors where it inte nds to attract FDI? Are there specific priority 
industries? What are the long-term plans for these sectors? 
 
RESPONSE  Japan welcomes investment from  overseas in all sectors. Ja pan expects investment will 
increase in various sectors which contribu te to promotion of open innovation or 
revitalization of local economy.  
2. Under Economic Environment, paragraph 1.25, the Secretariat report indicated that as part 
of the third arrow of structural reforms and in light of demographic challenges, on 24 June 2014 
the government released its "Revised Japan Revitalization Strategy" aimed at becoming a world-
class business centre by attracting global companies. One of the strategies includes increasing the 
use of foreign workers.   How does Japan intend to operationalize the increase of foreign workers? Are there specific 
industries that these foreign workers will be enco uraged to participate? What is the timeline for 
this strategy?  
RESPONSE 
 Amid intensifying competition to acquire per sonnel, it is vital to attract high-caliber 
human resources to Japan to further revita lize the Japanese economy and increase its 
competitiveness. In this regard, the Gove rnment of Japan included the concrete 
measures to utilize foreign human resources in  "Japan Revitalization Strategy Revised in 
2014". 
 
(Highly skilled foreign professionals)  
In order to promote acceptance of highly skilled foreign professionals, a points-based 
system that provides them with preferenti al immigration treatment was introduced in 
May 2012. 
 
In 2013, the Government of Japan implemen ted the measures aimed at increasing the 
convenience of preferential measures to promote the utilization of the points-based 
system for highly skilled fore ign professionals. More spec ifically, it took measures 
including the relaxing of requirements fo r accreditation of highly skilled foreign 
professional, such as revising the minimum a nnual income criterion, as well as eligibility 
to be accompanied by parents or domestic workers. Furthermore, in June 2014, the Act 
to Amend the Immigration Control and Re fugee Recognition Act was enacted to 
establish a new status of residence with an indefinite period of stay targeting highly 
skilled foreign professionals. 
 
(In the field of construction and shipbuilding)  As an urgent and temporary measure toward s the 2020 Olympic and Paralympic Games 
etc., the government will introduce a new sy stem to promote the utilization of work-
ready foreign human resources for construction  sector while making maximum efforts to 
secure domestic human resources by impr oving working conditions and workplace 
efficiency. Also, a similar measure will be ta ken for shipbuilding sector. The Government 
will start accepting foreign human resources under this system at the beginning of 
FY2015. 
 
In addition, to the fields where an urgent re sponse is required to ensure the sustainable 
growth, the Government will conduct the following  initiatives in view of the situation in 
which labour shortages already become apparent. WT/TPR/M/310/Add.1 
 
- 122 - 
 
  
 
 (In the field of manufacturing) 
 In light of fears about de-industrializatio n in Japan due to accelerating overseas 
expansion by Japanese manufacturing indu stry, the Government will develop systems 
that will enable domestic bases to function as mother plants, carrying out production 
activities based on a division of roles with overseas bases, and which will also facilitate 
research and development and capital in vestment based on this premise. The 
Government will develop a spec ific system within FY2014. 
 (In the field of housekeeping)  
Foreign housekeeping support workers are currently permitted to enter and remain in 
the country only if they are employed by fo reign nationals such as diplomats or highly 
skilled professionals. The Government will ex amine the measure to enable the foreign 
housekeeping support workers employed by a company providing housekeeping support 
services to enter and remain in the country even in the cases with the purpose to provide housekeeping support to Japanese  nationals. Such initiatives would be 
undertaken in National Strategic Special Zones on a trial basis, within the framework of 
the system managed by local authoritie s, with a view to promoting women's 
participation in society, meeting their ne ed for assistance for housework, and 
encouraging medium- to long-term economic gr owth. To this end, the Government will 
implement necessary measures without delay. 
 (In the field of nursing care) 
 
To enable international students studying in Ja pan to continue to play an active role in 
the country after graduating from a Japanese  higher education institution and obtaining 
a specific national qualification such as th e certified care worker qualification, the 
Government will promptly take  legislative measures for the establishment of a new 
status of residence.  
3. Under Economic Environment, paragraph 1.26, the Secretariat report indicated that another 
key demographic challenge facing the economy of Japan is the expected decrease of its population from 127 million today to 87 million in 2060 wh en about 40% of the population will be 65 
(currently the retirement age) or older. For th is reason, a Japanese government advisory panel 
recently proposed a goal to ensure a population of 100 million by 2060 which is based, inter alia , 
on the assumption that the fertility rate in 2030 would be 2.07%.  
 
Could Japan please explain how it intends to achieve the population target? What measures are being or will be undertaken to reach this goal?  
RESPONSE 
 First of all, the government of Japan prop osed "A population of about 100 million in 
2060" not as a target, but as an achievable vision, provided that our younger 
generation's hope for marriage and child-reari ng is fulfilled, which would raise Japan's 
total fertility rate. 
 
T o  m a k e  t h i s  v i s i o n  a  r e a l i t y ,  t h e  g o v e r n m e n t  o f  J a p a n  c r e a t e d  a  f i v e - y e a r  comprehensive strategy comprised of four basi c pillars: 1) bolstering local job creation, 
2) changing the trend in population moveme nt, 3) fulfilling the younger generation's 
hope for marriage and child-rearing, and 4)  promotion of regional cooperation to 
maintain public service provision in the face of the country's current declining 
population. 
 
This Comprehensive Strategy presents KPIs that should be achieved for each set of major policies and embeds the PDCA cycle. 
 
Considering this strategy, each local govern ment is asked to make its own long-term 
vision tailored to region-specific circumst ances and characterist ics in FY 2015. The 
government will make every effort to support such regional initiatives by making use of 
every possible measure, including those related to budgets and human resources. WT/TPR/M/310/Add.1 
 
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11.  UNITED STATES 
Part I: Questions on the Secretariat Report (WT/TPR/S/310) 
 
2 Trade and Investment Regime 
2.3 Trade agreements and arrangements 
2.3.1 WTO  
Page 21, paragraph 2.7 
 The Secretariat notes that in recent years, Japan has focused on the Trade Facilitation Agreement. In light of this statement, when does Japan an ticipate being able to notify the WTO of its 
acceptance of the TFA?  
 RESPONSE 
 
The Government of Japan is currently prepar ing to request the Diet approval in the 
189 session on concluding the Protocol Amending the Marrakesh Agreement 
Establishing the World Trade Organization. Ja pan will accept the Protocol without delay 
once the Diet approval is obtained.  3. Trade Policies and Practices by Measure 
3.1 Measures directly affecting imports 
3.1.5 Import prohibitions, restrictions, licensing, and quotas  
Page 32, paragraph 3.22 
 The report indicates that imports of certain goods are prohibited for various reasons, including to 
protect plant and animal life and the environmen t. Please describe any measures Japan has taken 
to prevent imports of illegally harvested wood into Japan. Is the Government of Japan considering any other measures to prohibit illegal wood products trade?  
RESPONSE 
 Japan has been implementing "Goho (legal)- wood system" based on "the Guideline for 
Verification on Legality and Sustainability  of Wood and Wood Products" since 2006 to 
promote distribution of legal wood and wood products in the Japanese market. 
  
With respect to endangered species, Japan requires the export permits by exporting 
countries when importing wood covered by the Convention on International Trade in Endangered Species of Wild Fauna and Fl ora. According to the Convention, the 
authorities in exporting countries shall issue the export permits only when they confirm 
that the wood was not obtained in contradiction of the laws of that state for the 
protection of the species.  
Japan is considering measures to streng then the "Goho-wood system" under above 
circumstances.  
3.1.8 Sanitary and Phytosanitary Measures  
 Page 39, paragraph 3.52  
In those areas where Japan has established maximum residue limits (MRLs) without a codex 
standard or lower than Codex standards, can Japan please provide scientific data and risk assessments relevant to requiring stricter MRLs fo r agricultural products than required by Codex? 
 
Can Japan describe the transparent, scientific justification, and risk assessment processes for establishing MRLs for particular veterinary drugs or pesticides, especially when MRLs are 
established or based on the limit of quantitation (LOQ) in absence of Codex guidelines? 
 WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 Basically, the Ministry of Health, Labour an d Welfare (MHLW) of Japan establishes MRLs 
(maximum residue limits) for agricultural chemicals, incl uding veterinary drugs and 
pesticides, based on the ADI (acceptable da ily intake) and the ARfD (acute reference 
dose) that the Food Safety Commission of Ja pan (FSCJ) derives as the result of risk 
assessment. Specifically, MRLs are set so that  not only the ADI but also the ARfD is not 
exceeded by conducting exposure assessm ent based on food intakes by Japanese 
citizens and residue studies. Japan harmon izes Japan's MRLs with Codex standards 
where appropriate.  
In response to a request from MHLW, FSCJ conducts its risk assessment based on the 
discussion of the relevant experts who be long to the FSCJ's Expert Committees which 
are established for individual hazards. The disc ussion is made on the basis of the latest 
scientific evidences. Meetings of the Expe rt Committees are basically open to public. 
FSCJ publishes a draft risk assessment report  on the website and accepts comments for 
30 days before FSCJ concludes the report and submits it to MHLW. 
 
When MHLW establishes MRLs, these are prov ided through above scientific processes. 
The MHLW publishes the specific grounds for setting forth MRLs for individual chemicals 
on website of the MHLW. It is physically diffic ult to translate all of them into English. If 
the United States is interested in them, please make an inquiry to the MHLW on an 
individual basis.  
Page 40, paragraph 3.53 
 For restrictions involving OIE listed animal diseases, can Japan explain the scientific basis for 
differences with OIE recommendations and country/regional classifications? 
 - Does Japan accept that certain diseases may be restricted geographically in exporting 
countries, and not preclude entirely banning a country from imports during the occurrence of 
an OIE listed disease? 
 
- Japan allows importation of U.S. beef products, but restricts imports to products from cattle 
less than 30 months of age. This policy is inconsistent with international standards set by 
the OIE, which has recognized that both Japan and the United States present a negligible risk of BSE transmission. When will Japan adopt OIE-consistent BSE regulations and provide 
U.S. products with the same level of market access that the United States provides Japanese 
products? 
 RESPONSE 
 
SPS measures of Japan are in general based on relevant international standards, or 
where its measures do not conform to rele vant international standards, based on 
scientific risk assessment, in a ccordance with the SPS Agreement. 
 Japan applies the regionalization principle, i.e. measures are adapted to the sanitary 
characteristics of the area of the product or igin, for certain animal diseases such as 
FMD, HPAI, CSF taking into account the ri sk assessment results and the OIE code.  
 The SPS Agreement requires that the sanitary or phytosanitary measures conducted by 
WTO Members are based on scie ntific principles. As for BSE regulations, the MHLW 
requests risk assessment to FSCJ taking into  account the OIE evaluation. For relaxing 
further age restrictions based on the international standards regarding the U.S. beef, the 
MHLW has already requested risk assessment to  FSCJ. FSCJ will be able to complete the 
assessment when all the necessary information, such as more data collected by the risk 
management organizations and new scientific evidences, become available. After FSCJ 
notifies the MHLW of the risk assessmen t result, the MHLW will consider further 
relaxation of the beef import requirement ba sed 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, time line and result of the risk assessments. 
 WT/TPR/M/310/Add.1 
 
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3.1.10 Government procurement 
 Page 42, paragraph 3.67  
We appreciate that Japan has eliminated its wood  self-sufficiency policy objective. Could Japan 
please explain how Japan decided to eliminate its goal of covering 50% of domestic demand for wood with domestic supply in 2013? How was that policy change publicized? How has that change 
been incorporated into domestic support programs? 
 RESPONSE  
The goal of 50% of wood self-sufficiency ra te was written in the "New Growth Strategy" 
which was decided by the cabinet in 2010.  But in 2013, the "Japan Revitalization 
Strategy" was decided by the new cabinet, an d was widely announced to the public. In 
the new strategy, a policy goal of wood self-sufficiency rate is not written. 
 Japan has been implementing forestry prog rams without distinction between domestic 
and foreign products. 
 Page 42, paragraph 3.67  
With regards to the Wood Use Point Program (WUPP) initiated in 2013 and implemented through 
2014, targeted Japanese species of wood were immediately eligible across all prefectures and all construction methods for the duration of the program, while foreign species had to apply for 
eligibility at both the national and individual prefectural levels.  
 We acknowledge that U.S. Douglas fir and four additional species from five other foreign countries 
were eventually accorded the same treatment as Japanese "domestic species" under the Wood Use 
Point Program (WUPP), but the administrative burden of the eligibility application process significantly impeded the ability of foreign species to qualify for benefits under the WUPP. Will Japan continue to recognize the WUPP "domestic sp ecies" status of U.S. Douglas fir under future 
domestic support programs? What steps is Japan taking to afford national treatment to foreign 
suppliers in the WUPP applications process?  
RESPONSE 
 The Wood Use Points Program ensures that foreign wood and domestic wood are treated 
in a non-discriminatory manner. U.S. Douglas fir was designated as eligible wood under 
the program because it met the program's requirements.   The substantial role of the Wood Use Points  Program has already been completed at the 
end of September 2014 since the WUPP is no more applicable for wooden houses 
constructed thereafter. But the WUPP applic ation process will continue until May 2015 
for individuals that started the relevant co nstruction before the September deadline. 
Japan will continue to ensure non-discri minatory treatment between domestic and 
foreign products during the remaining period of the application process. 
 
3.3. Measures affecting production and trade 
3.3.3 State-owned enterprises  Page 53, paragraph 3.115 and page 54, Table 3.14 
 
The report notes that ALIC, a state trading enterprise, operates to ensure the delivery of goods that would not otherwise "be adequately provided by the private sector" as well as the "proper and 
smooth operation of the system to stabilize su pply/demand and price of the designated milk 
products." Given the widespread shortage of butter at retail locations in Japan towards the end of 2014, please explain how ALIC's administered supply and demand stabilizing process is more 
effective in adequately supplying the market than would be the case through private sector 
channels.   WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 The import of dairy products in the forms of the state trading has played a role in stabilizing supply and demand of specific dair y products as well as the whole demand of 
raw milk in Japan. 
  In FY2014, Japan increased import quantity of butter through the state trading in 
response to the shortage of butter. Thes e butter imports stabilized supply and demand 
of butter in Japan.  3.3.5 Intellectual property rights 
 
Page 65, paragraph 3.154  
 
Please provide more details about the mentioned establishment of a GI protection scheme. How 
will the scheme safeguard the use of both generic terms and prior trademarks and also ensure that 
any party with an interest in using a term would have a full and meaningful opportunity to 
challenge the protection or proposed protection of that term (e.g., opposition and cancellation 
procedures)? Will the Act enter into force in June 2015 as noted?   RESPONSE 
 
Pursuant to the GI Act, Minister of Agricult ure, Forestry and Fisheries shall refuse the 
application if the name is considered as gene ric term or the name is identical or similar 
to the registered trademarks (except those are submitted by owner of the registered 
trademark or authorized user). The GI Act st ipulates three-month opposition procedures 
where any interested party can submit no tices of opposition to the published 
applications. Challenge opportunities for cance llation of registered GIs will be provided 
pursuant to the Administrative Appeal Act.  The GI Act will enter into force in June 2015 as planned. 
 
Page 65, paragraph 3.155  
The section on Copyright does not reference any changes to Japan's Internet Service Provider 
(ISP) liability law. With regard to Japan's Intellectual Property Policy Vision, what specific measures does the IP Strategy Headquarters office intend to implement in its policy plan to 
provide adequate protection for a rights holder's work(s) on the Internet? How does Japan intend 
to take into account the interests of rights ho lders, ISPs and consumers in developing new ISP 
guidelines?  
RESPONSE 
 In order to enhance countermeasures agai nst counterfeits and pirated goods, the 
Government of Japan will work to further intensify enforcement activities, including 
cracking down on counterfeits and pirated goods in countries where infringement has 
occurred and by removing material from the Internet, through unified efforts by the 
public and the private sectors, and in affilia tion with other countries. In addition, the 
Government of Japan will support efforts to promote the circulatio n of genuine content 
together with the countermeasures against infringement.  
In Japan, the stakeholder organization consis ting of ISPs, right holders and others was 
established and the organization have develo ped and maintained related guidelines as 
practical guidelines for actions, such as "Gui delines relating to Copyright". Stakeholders 
hold regular discussion on the operations of the guidelines and other related issues. 
 Page 65, paragraph 3.156 – 3.162 
 
Does Japan have any updates on its intent to improve its enforcement against unauthorized circumvention of technical protection measures including trafficking in tools used to circumvent TPMs and providing circumvention services? 
 WT/TPR/M/310/Add.1 
 
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RESPONSE 
 Unfair Competition Prevention Act was revise d in 2011 to introduce a criminal offense 
and to extend the range of application of UCPA regarding devices circumventing 
technological restriction measures. Furtherm ore, with the amendment of Copyright Act 
in 2012, cryptographic technologies (techno logies that are used for DVD and other 
formats) are also covered by TPM in addition  to signal adding system that had been 
covered before the amendment, and provisions  to regulate the evasion of TPM based on 
cryptographic technologies are created. We ha ve no plan to revise UCPA and Copyright 
Act furthermore to improve its enforcement at this point. 
 
4. Trade Policies in Selected Sectors 
4.1 Agriculture 4.1.2 Agricultural policies 
 
Page 71, paragraph 4.9 – 4.10  
The report notes that MAFF is responsible for agricult ure policy, as well as forestry and fishing, and 
that the Ministry oversees research and development. Does this include overseeing and implementation of sustainable forestry and marine fishery management programs? Does the Headquarters on Creating Dynamism through Agriculture, Forestry and Fishery Industries and 
Local Communities have an overarching plan to ensure sustainable management of the resources?  
 RESPONSE 
 
MAFF is responsible for overseeing and im plementation of sustainable forestry 
management and fishery management. 
 
"The Plan to Create Dynamism through Agri culture, Forestry and Fisheries and Local 
Communities" however, does not include an overarching plan to ensure sustainable 
management of the resources. 
 
Page 72, paragraph 4.12  
Does Japan still believe that the FY2020 self-suf ficiency target of 50% on a calorie basis is 
attainable? How does such a target achieve the desired goal of an economically viable, productive and diverse agricultural sector? 
 
RESPONSE  The Japanese government has promoted vari ous policies in order to improve Japan's 
food self-sufficiency ratio under the 3rd Basi c Plan for Food, Agriculture and Rural Areas 
revised in 2010, while the food self-sufficien cy ratio has not been improved. Therefore, 
the Japanese government evaluated the pres ent target last year, and will revise the 
target of food self-sufficiency ratio in the 4th Basic Plan for Food, Agriculture and Rural 
Areas which will be updated this March,  based on the result of evaluation. 
 
The Japanese government expects to create st rong and aggressive agricultural sector by 
promoting exports, improving value-added on  agriculture through collaboration between 
primary, secondary, and tertiary indust ries, and fully utilizing farmlands through 
promotion of crop production in demand in order to achieve a new target of food self-
sufficiency ratio. 
 Page 72, paragraph 4.13 
 
Please provide more details on how Japan is "attracting younger people into agriculture through support, encouragement to set up farm businesses, and education and training." 
 WT/TPR/M/310/Add.1 
 
- 128 - 
 
  
 
 RESPONSE 
 The following are the typical measures: 1.  Conducting a fixed-rate payment to new and beginning farmers under the Young 
Farmers Payments Scheme. 
 2.  Subsidizing training costs for agricult ural corporations which employ new young 
farmers. 
 3.  Subsidizing training courses of prefectu ral agricultural colleges, on condition that 
they are undertaken as part of the reform of the education curriculum. 
 
Page 72, paragraph 4.14 [As well as WT/TPR/G/310, 4.4, Paragraph 4.18] 
 
We note that Japan is currently engaged in efforts to reform its agricultural system, including 
reform of agricultural cooperatives and agricultural committees. What is the status of that reform? Please describe any changes that are planned or ha ve been implemented. What impact on Japan's 
WTO Domestic Support commitments are envisioned in these reforms? 
 RESPONSE  
Integrated reform of agricultural cooperat ives, agricultural committee and agricultural 
production corporation will be  implemented to se cure the independen ce and vitalization 
of local agricultural cooperatives, to shif t from the Central Union of Agricultural 
Cooperatives system to new autonomous syst em, and to revise the method for electing 
agricultural committee members and the requ irements of agricultural production 
corporations for the ownership of farmland . The relevant bills are being drafted for 
submission during the current or dinary Diet session. This refo rm has no direct impact on 
the WTO Domestic Support commitments.  Page 73, paragraph 4.16 
 
The Secretariat's Report notes that Japan subsidizes the Agricultural Insurance Scheme and provides reinsurance to local insurance funds. 
 
 Please provide more details with regard to how the Agricultural Insurance Scheme is 
implemented.  
 Please also indicate whether policies purchased by farmers are on a whole-farm basis or 
individual commodities.  
 Please explain the difference between the noti fied budget outlays for the Agricultural 
Insurance Scheme in Supporting Table DS:1 and Supporting Table DS:9 of Japan's most 
recent notification (G/AG/JPN/191) and how the reinsurance noted by the Secretariat is 
reported. 
 
RESPONSE 
  As noted in the Secretariat's Report Paragraph 4.29, the Agricultural Insurance 
Scheme provides a compensation for farmer s' yield losses caused by disasters, 
diseases, and other events. It is operated by agricultural mutual relief associations 
organized by farmers, which mostly cove r municipal areas. As the general rule, 
Associations are partially reinsured by fe derations of agricultural mutual relief 
associations, which cover prefectural ar eas. Furthermore, the Federations are 
partially reinsured by the government.  
 Farmers can insure individual commodities  which they produce (rice, wheat, and 
barley, livestock, fruits, field crops, and silk worms) or hort iculture facilities. 
 The value of subsidies in DS:1 and DS:9 is distinguished and reported according to 
Annex 2 to the Agreement on Agriculture.  
 The reinsurance noted by the Secretariat is not reported, because it is not 
subsidized by the government. 
 WT/TPR/M/310/Add.1 
 
- 129 - 
 
Page 73, paragraph 4.19 
 The report notes that the tariff quota for butter and butter oil was consistently under-utilized between FY2007 and FY2012. Please provide the fill rate for the first nine months of FY2014.  
 
RESPONSE  
The import quantity of the quota was 139 ton from April to December of FY2014. The 
In-quota volume is 581 ton and the fill rate was 24%.  Page 74, paragraph 4.27 
 
The report notes that legislation has been passed to promote farmland consolidation. What is that status of that effort? Are the costs associated with those programs envisioned to be exempt from 
inclusion in Japan's WTO Domestic Support commitments? 
 RESPONSE 
 
The institutions supported by regional gove rnment for promoting farmland consolidation 
were established in all prefectures in No vember 2014. The institutions have been 
facilitating the discussions for farmland con solidation through transactions of land-use 
rights in community level during this agri cultural off-season. The treatment of the 
budget after 2013 for those programs in WT O Domestic Support commitments is under 
review. 
 
Page 72, paragraph 4.27 
 
The Secretariat Report states that Japan provides a fixed direct payment to encourage new young 
farmers. The program was introduced in FY 2012 and compensates new farmers for initial investment costs at the rate of ¥1.5 million per year.  
 Please elaborate on the success of this program in attracting new farmers, including the 
number of new young farmers that have  taken advantage of the program. 
 Please indicate how the fixed direct payment rate was determined. 
 
RESPONSE  
 In FY 2013, a total of 10,085 young farmers utilized Young Farmers Payments. 
 It is calculated by multiplying the nati onal minimum hourly wage by the annual 
working hours decided by the government. 
 
Page 77, paragraph 4.46 
 The report notes that Japan provides a number of support programs for Japanese dairy producers. 
One of those programs not listed in the report is a direct payment of ¥12.8/kg of fluid milk for 
butter production up to an eligible volume of 1.80 million metric tons. The volume of milk directed 
for butter production under this direct payment program has consistently been lower than the 
eligible volume cap. Can Japan please explain how this subsidy payment and related programs 
operate to ensure sufficient supplies of butter to the Japanese market? How would Japan characterize the success of the program?  
RESPONSE 
 This subsidy primarily aims to stabilize dairy farming management, not to stabilize 
supply of butter, and through which stability of supply and demand of milk as well as 
dairy farming management is secured.  
What the U.S. mentioned ( The volume of milk directed for butter production under this 
direct payment program has consistently be en lower than the e ligible volume cap ) is not 
correct, because there were some years that the milk production exceeded the eligible volume cap. (ex. in 2009) 
 WT/TPR/M/310/Add.1 
 
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 4.2 Fisheries 
 Page 84, Table 4.13  
The table in the Secretariat report notes that as  of 2012, Japan was still engaged in the take of 
several whale species. In 2014, the ICJ ruled that Japan's whaling program does not meet criteria under IWC for whaling for scientific purposes. Has Japan taking any steps to modify or conform its 
program to the IWC's criteria in response to this ruling? If so, please provide details on any 
modifications to the whaling program. Please pr ovide statistics on the number and species of 
whales Japan has taken since 2012.  
 
RESPONSE 
 The International Court of Justice (ICJ) ruled in March 2014 that the second phase of 
the Japanese Whale Research Program under Special Permit in the Antarctic (JARPAII) 
did not fall within the provisions of Arti cle VIII, paragraph 1, of the International 
Convention for the Regulation of Whaling.  Japan has abided by the ICJ judgment and 
has already cancelled JARPAII. In November 2014, Japan submitted the proposed plan 
for the New Scientific Whale Research Pr ogram in the Antarctic Ocean (NEWREP-A) 
taking into account the reasoning and conclu sions of the Judgement to the International 
Whaling Commission (IWC) Scientific Committ ee. The proposed plan will be reviewed 
and commented in the IWC Scientific Committ ee in accordance with the rules of the 
International Convention for the Regulation of Whaling (ICRW).   
Member countries of the IWC, including Japa n and USA, annually submit their catches of 
large whales to the IWC. The information on Japan's catches is published by the IWC Secretariat at the following website: 
 
https://iwc.int/table_permit  
 
Also, the numbers of small cetacean taken in Japan is published by the Fisheries Agency 
of Japan through the Internet in Japanese and English. The most resent one in English is 
available at the following website:  
http://www.jfa.maff.go.jp/j/w hale/w_document/pdf/h25.pdf  
 
4.2.3 Policy 
 
Page 86, paragraph 4.69  The report details the main laws concerning the fisheries sector, such as the Fisheries Law, the 
Basic Law on the Fisheries Policy, Act on Preservati on and Control of Living Marine Resources, etc. 
Is Japan in the process of reviewing and amending any of these laws to strengthen them?  
 
RESPONSE 
 There is a possibility to consider reviewing or amending these laws depending on the 
situation, but Japan is not in the process for now. 
 Page 86, paragraph 4.70   
The report notes that the Basic Plan for Fisheries was formulated in 2012. How long is this Plan in 
place, and will Japan be updating the Plan? Is th ere a plan of action and concrete proposals for 
work to achieve the stated objectives of the Plan, notably "sustainable use of resources through 
resource management and sustainable aquaculture"?  
 RESPONSE 
 
The plan is will be in place for approximatel y next 10 years. The plan will be reviewed 
every 5 years.   WT/TPR/M/310/Add.1 
 
- 131 - 
 
Regarding "sustainable use of resources through resource management and sustainable 
aquaculture," Japan has a plan of action and concrete proposals such as promoting 
systematic resource manage ment nationwide based on the resource-management 
policies and resource recovery plans, implementing the Aquaculture Ground 
Improvement Plan, and promoting co nversion to artificial seeds. 
 4.2.3.2 Stock management 
 
Page 87, paragraph 4.73  The report indicates that resource levels were low for 35 fish stocks. Does the Government of 
Japan have measures in place to ensure that any subsidies being provided to the fisheries sector 
are not supporting overfishing or overcapacity with  respect to any of the 35 fish stocks with low 
resource levels? 
 
RESPONSE  
The low resource level is caused not only by fishery but by other multiple factors such as 
environmental variability.  Japan conducts proper resource managements and tries to restore the resources for low 
level fish stocks. 
 Japan does not have any budgets that coul d lead to overfishin g or overcapacity.  
 
Page 87, paragraph 4.75  
The Secretariat report notes that in some cases,  the total allowable catch had been greater than 
allowable biological catch, and that efforts have been made to ensure that the total allowable catch conforms to the allowable biological catch. Please clarify and expand on the actions that the government is taking to ensure that the total allowable catch conforms to the allowable biological 
catch.  
 RESPONSE 
 
In the fishing year 2014, such difference as noted in the para.4.75. remains only in the 
cases of northern Japan Sea stock and Pacific stock of Alaska pollack. For coming fishing 
year 2015, the Fishery Agency of Japan propos es in its public comment process that the 
TAC level for these two stocks to be the same as the ABC level respectively.    
 Page 88, paragraph 4.77 
 
The report notes that several measures have been taken to prevent and deter illegal, unreported, and unregulated (IUU) fishing. Please describ e and provide details on the success of these 
measures. 
 RESPONSE 
 
The Catch Documentation System is the sc heme adopted by some RFMOs. In this 
system, the governments of flag states an d countries/regions managing farms and set-
nets issue certifications to each fish that th e fish are not related to IUU activity at every 
process of catch, transshipment, farmin g and import/export. The Statistics 
Documentation System is the scheme that  the governments of flag states and 
countries/regions managing farms certify at th e point of export that the product is not 
related to IUU activity. This was also ad opted and implemented by several RFMOs. 
 These measures are effective to exclude IUU fish and its products from market and to 
minimize the incentives for IUU fishing activity. 
 WT/TPR/M/310/Add.1 
 
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 4.2.3.4 Support for fisheries 
 Page 88, paragraph 4.80 (and  page 87, paragraph 4.72) 
 
The report indicates that supplementary budgets pr ovided additional assistance to the fisheries 
sector in response to the 2011 earthquake and tsunami. Has the government notified this support to the WTO?  
 
RESPONSE  The budget for recovery from the Great East Japan Earthquake and Tsunami is prepared 
all for whole sectors including fisheries sector . Since the published figure is classified 
into fisheries sector for the sake of convenience, and the budget does not have specificity to fisheries, it is not notified to the WTO. 
 
Page 89, paragraph 4.83  
The report indicates that Japan notified the Fish eries Modernization Fund Interest Subsidy and the 
Fund for the Measure to Recover Fishery Resources to the WTO Committee on Subsidies and Countervailing Measures. Public information, including a 2012 OECD report, indicates that Japan may have the following additional fisheries assistance programs: 
 
 Decommissioning of Vessels and Licenses for Capture Fisheries 
 Cost Reducing Transfers for Capture Fisheries 
 General Services for Capture Fisheries 
 Cost Reducing Transfers for Marketing and Processing 
 General Services for Marketing and Processing 
 
It appears that Japan has not notified these additional programs to the WTO Subsidies Committee. Please explain.  
RESPONSE 
 The programs described in the question ar e the classification categories of the 
Government Financial Transfers at the OECD Review of Fisheries Country Statistics, and 
they are not exactly corresponding to Japan's actual program. Regarding the notification 
to the WTO, the Government of Japan will co nsider it based on the discussion at the 
WTO. 
 Part III: Other Questions 
 
Questions on Japan's Proposed outline of Privacy legislation amendments 
 Japan's Cabinet Secretariat recently publish an outline of revisions to Japan's privacy law that we 
understand would form the basis for proposed legislation to be introduced soon in the Diet. Has 
any legislation been formally proposed? If so, is it available to the public? 
 
RESPONSE 
 Since the legislation has not been proposed ye t, it is not available to the public.  
 
 One section of the outline (Section 5) addres ses cross-border information transfers, which 
will have a significant impact on international trade. It appears to set up a system where the default is that information cannot be transferred abroad unless certain, potentially stringent 
procedures are first met. 
 Is this the intent of the outline - to establish a default rule that personal information cannot 
be transferred out of Japan? 
 
RESPONSE  The Government of Japan has no intention of establishing a rule that personal 
information cannot be transferred out of Japan,  nor aiming to set up a system where the WT/TPR/M/310/Add.1 
 
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default is that information cannot be tran sferred abroad unless certain, potentially 
stringent procedures are first met. 
 
 This section also envisages the establishment of a privacy commission, tasked with 
reviewing privacy regimes around the world to  determine whether they would sufficiently 
match Japan's requirements and thus be an acceptable destination for Japan-origin personal information. 
 Does Japan believe that a system for evaluating all the privacy regimes in the world is 
feasible in any reasonable timeframe? Won't setting up such a system inevitably raise MFN issues? 
 
RESPONSE 
 There is no detailed determination of Japan as to when evaluation of privacy regimes 
worldwide will take place. 
 Notwithstanding the above, the Government of Japan is of the position that the 
amendment of the Act on Personal Data Protecti on to be proposed does not give rise to a 
violation of MFN provision of GATS. This is  because there is no differential treatment 
between that accorded by Japan to a servic e and service supplier of a Member and that 
accorded to a like service and service supp lier of any other country with respect to 
obligations under the Act in relation to per sonal data transmission, in that the amended 
Act will apply equally to all service suppliers  that have commercial presence in Japan 
regardless of their nationalities. The Governme nt of Japan will, in any case, maintain the 
conformity with the relevant provisions of WTO Agreement in applying the amended Act.  
 
 As an alternative to data transfer rights based on specific foreign laws, Japan previously 
embraced the APEC framework for Cross-Border Privacy Rules, a more flexible approach that 
allows companies to voluntarily opt into an enforceable code of conduct to protect privacy.  
 Will the proposed amendments to the privacy law be consistent with the APEC Cross-border 
Privacy Rules, and allow for the use of that fr amework as a basis for cross-border transfer? 
 
RESPONSE  
After the amendment of the Act on the Protecti on of Personal Information, new Rules for 
transferring personal information compatible  with the APEC Cross-Border Privacy Rules 
are supposed to be released. As long as a region or a country complies with the APEC 
Cross-Border Privacy Rules, there will be no restrictions for cross-border transfer of 
personal information.  FOLLOW UP QUESTIONS FROM THE UNITED STATES – WT/TPR/S/310 
 
Question 1 - Page 21, paragraph 2.7  
In response to the original U.S. question on wh en Japan anticipates being able to notify the WTO 
of its acceptance of the TFA, Japan stated that it was preparing to request the Diet approval in the 189 session on concluding the Protocol Amending the Marrakesh Agreement Establishing the World 
Trade Organization. We appreciate Japan's re sponse and its commitment to the agreement. 
Considering that the 189
th session convened on January 26 and is expected to stay in session until 
late June, does Japan have any update on its progress of formally accepting the TFA?  
RESPONSE 
 On March 10, 2015, the Cabinet made the deci sion to request the Diet to approve the 
conclusion of the Protocol Amending the Marrakesh Agreement Establishing the World 
Trade Organization and submitted the Protoc ol to the 189th session of the Diet. Japan 
will accept the Protocol without delay once  the Diet deliberations are completed and 
that approval is obtained. 
 WT/TPR/M/310/Add.1 
 
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 RD/TPR/405 
 
Question 2 - Page 7, regarding questi on on section 4.1.2.2 Trade policies 
 
In response to a question from another Member, Japan noted the following average tenors 
for 2012: Export Credit Insurance (43 days); Export bill insurance (62 days); Export credit insurance for SMEs (54 days). Can Japan provide the average tenors by program specifically for 
exports of agricultural products for 2013? 
 
RESPONSE  
The average tenor length for FY 2013: 
 Export Credit Insurance—39 days 
Export Bill Insurance—58 days 
Export Credit Insurance for SMEs—59 days  
Question 3 - Page 7, regarding questi on on section 4.1.2.2 Trade policies 
 Following onto a question asked by another Me mber, for 2013, did Japan provide any export 
financing support for agriculture with repayment terms of greater than 180 days? If so, what were 
the repayment terms? For what specific agricultural products and export destinations? 
 RESPONSE 
 
Japan did not provide any export financing su pport for agriculture with repayment terms 
of greater than 180 days in FY 2013. 
 
Question 4 
 In attachment 1 on page 8 of Japan's replies, Japan provided a breakdown of NEXI-supported 
agricultural exports - by product category, program, and destination - for 2012. Can Japan provide 
a similar breakdown for 2013?  
RESPONSE 
 Underwritten amount by export of  agricultural products in 2013 
 
Type of Insurance Underwritten amount by export of agricultural 
products （Japanese  Yen） 
Export Bill Insurance 1,318,254,661  
Export Credit Insurance 7,391,450,279  
Export Credit Insurance for SMEs  412,271,273  
Total 9,121,976,213  
 
Products （HS code ） Underwritten amount by export of agricultural 
products （Japanese  Yen） 
02 Meat & edible meat offal 3,896,426  
04 Dairy, eggs, honey, & ed. products 11,997,958  
05 Products of animal origin 2,237,019  
06 Live trees & other plants 1,054,368  
07 Edible vegetables 137,996,906  
08 Ed. fruits & nuts, peel of citrus/melons 34,608,066  
09 Coffee, tea, mate & spices 246,183,478  
10 Cereals 49,905,931  
11 Milling industry products 180,779,334  
12 Oil seeds/misc. grains/med. Plants 210,695,422  
13 Lac, gums, resins, etc. 414,401,651  
15 Animal or vegetable fats, oils & waxes 132,872,798  
16 Ed. prep. of meat, fish, crustaceans, etc. 329,280,264  
17 Sugars & sugar confectionery 154,537,743  
18 Cocoa & cocoa preparations 47,948,557  
19 Preps. of cereals, fl our, starch or milk 1,938,610,428  
20 Preps of vegs, fruits, nuts, etc. 242,330,739  
21 Misc. edible preparations 3,425,244,702  WT/TPR/M/310/Add.1 
 
- 135 - 
 
Products （HS code ） Underwritten amount by export of agricultural 
products （Japanese  Yen） 
22 Beverages, spirits & vinegar 1,179,354,197  
23 Residues from food industries, animal feed 239,116,215  
35 Albuminoidal sub, starches, glues, enzymes 79,406,055  
52 Cotton, inc. yarns & woven fabrics thereof 59,517,956  
Total 9,121,976,213  
 
Destination Underwritten amount by export of agricultural 
products （Japanese  Yen） 
Australia 755,600,214  
Belgium 52,645,298  
Brazil 95,013,015  
Cambodia 12,151,306  
Canada 111,187,636  
Chile 461,671  
China 411,456,310  
Commonwealth of the Northern Mariana Islands (USA) 51,862,657  
Croatia 27,451,600  
Denmark 3,603,424  
French 201,729,734  
Germany 234,560,415  
Guam (USA) 71,090,141  
Hong Kong, China 1,612,750,962  
India 3,461,540  
Indonesia 77,460,815  
Iran 964,400  
Israel 139,345,010  
Italy 86,106,122  
Jordan 45,771,317  
Korea 33,690,918  
Kuwait 19,620,323  
Lebanon 112,560,479  
Macau, China 8,205,040  
Malaysia 372,347,192  
Nepal 28,717,559  
Netherlands 487,063,810  
New Zealand 303,575,175  
Norway 21,096,327  
Pakistan 120,890,324  
Palau 15,523,405  
Philippines 95,276,840  
Portugal 20,442,464  
Russian Federation 10,705,122  
Saudi Arabia 8,054,917  
Singapore 443,061,160  
South Africa 1,326,000  
Spain 121,718,809  
Sweden 43,245,614  
Switzerland 37,409,918  
Chinese Taipei 814,036,826  
Thailand 495,945,136  
UAE 145,321,235  
UK 424,522,203  
USA 573,731,394  
Viet Nam 369,214,436  
Total 9,121,976,213  
 
Question 5 
 
In attachment 2 on page 8 of Japan's replies, Japan notes that agricultural products valued at 
over 526 million Yen were exported to the USA in 2012. Does Japan have any further details on 
the specific products/product categories of the agricultural exports to the United States?  RESPONSE 
 
These are the categories of agricultural ex ports, which were underwritten, to USA 2012. 
 WT/TPR/M/310/Add.1 
 
- 136 - 
 
  
 
 HS code Goods (HS code in double figures) 
11 Milling industry products 
13 Lac, gums, resins, etc. 
15 Animal or vegetable fats, oils & waxes 
19 Preps. of cereals, flour, starch or milk 
21 Misc. edible preparations 
22 Beverages, spirits & vinegar 
12 Oil seeds/misc. grai ns/med. plants/straw 
17 Sugars & sugar confectionery 
20 Preps. of vegs, fruits, nuts, etc. 
7 Edible vegetables 
 
Question 6 - Page 36, regarding question 27  
In response to a question by another Member, Japan provided information regarding the JBIC. 
Does JBIC provide any export financing support, including direct loans, for agricultural commodity exports? If so, for what commodities? What are th e destinations of the exports and the repayment 
terms? 
 
RESPONSE  
JBIC does not provide any types of export financing support for agricultural commodity 
exports.  WT/TPR/M/310/Add.1 
 
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12. COSTA RICA 
Part I: Questions regarding the Secretariat Report 
 
Página 25 (párrafos 2.23 y 2.24) 
 
2.23. El Gobierno estableció en abril de 2014 el Consejo de Promoción de la Inversión Extranjera Directa atendiendo a una recomendación formulada en la Reunión del grupo de expertos en 
inversión extranjera directa en el Japón. El grupo de expertos señaló el bajo nivel de IED en el 
Japón e identificó varios factores que contribuyen a ello:   un mercado de trabajo carente de flexibilidad y la baja participación de la mujer en la 
población activa, además de las aptitudes lingüísticas; 
 la gobernanza empresarial, en concreto, la po ca importancia que se da al aumento de los 
beneficios de los accionistas; 
 unos costos energéticos y de distribución relativamente altos, los costos del cumplimiento de 
las normas de calidad y seguridad del Japón y los elevados costos de los insumos, sobre todo de las materias primas agrícolas; 
 los elevados tipos nominales y efectivos del impuesto de sociedades y el costo del 
cumplimiento de las obligaciones fiscales, además de otros costos administrativos, como los relacionados con el establecimiento de empresas. 
 
2.24. El grupo de expertos formuló una serie de recomendaciones, como las siguientes: reducir los 
costos fiscales y administrativos; perfeccionar los recursos humanos; armonizar y simplificar los sistemas de aprobación y concesión de licencias; y promover los acuerdos de asociación 
económica, los acuerdos fiscales y otro tipo de tratados bilaterales en materia de inversión. 
 Page 25 (paragraph 2.23 and 2.24) 
 
2.23. In April 2014, the Government established the Council for the Promotion of Direct Foreign Investment in response to a recommendation made  by in a meeting of the group of experts in 
direct foreign investment in Japan. The group of experts noted the low level of FDI in Japan and 
identified several factors that contribute to this: 
  a labor market lacking flexibility and low participation of women in the workforce, in addition 
to language skills; 
 corporate governance, in particular, the low priority given to increasing shareholder value; 
 relatively high energy and distribution cost s, costs of compliance with the standards of 
quality and safety of Japan and the high costs of inputs, especially agricultural commodities; 
 high and nominal rates effective of corporate tax and the cost of compliance with tax 
obligations, and other administrative costs, such as those related to the establishment of companies. 
 
2.24. The panel made a number of recommendations , including: reducing fiscal and administrative 
costs; develop human resources; harmonize and simplify approval systems and licensing; and 
promote economic partnership agreements, tax treaties and other bilateral investment treaties. 
 Questions 
 1. ¿Puede explicar Japón sobre las características y funciones que se le otorgaron al Consejo de Promoción de la Inversión Extranjera Directa?  
 
2. Asimismo, ¿puede indicar cuales de las recomendaciones mencionadas en el párrafo 2.24 se 
han implementado y explicar los resultados que éstas han tenido?  
Questions 
 
1. Can you explain Japan about the features and functions that were granted to the Foreign 
Direct Investment Promotion Council? 
 WT/TPR/M/310/Add.1 
 
- 138 - 
 
  
 
 RESPONSE 
 The mission of the Council for Promotion of Foreign Direct Investment is to have 
relevant government bodies facilitate stru ctural reforms in order to improve the 
business environment for foreign companies. 
 2. Also, can you indicate which of the recommendations mentioned in paragraph 2.24 have 
been implemented and explain the results they have had? 
 
RESPONSE  
Taking into account the recommendations of the Expert Group Meeting on Foreign Direct 
Investment in Japan, the Council for Promotion of Foreign Direct Investment in Japan is 
considering to identify priori ty tasks, which include but not limited to, strengthening 
multi-language services, cultivatin g personnel with a global outlook. 
 Página 36 (párrafo 3.25) 
 
3.25. "Los solicitantes de contingentes deben cumplir diversos criterios. Algunos contingentes se asignan por orden de presentación de la solicitud. Cuando la cantidad solicitada excede del contingente sin asignar, se sortea la asignación de las participaciones restantes." 
 
Page 36 (paragraph 3.25)  
3.25. "Quota Applicants must meet several criteria. Some quotas are allocated in order of filing. 
When the requested quantity exceeds unallocated quota, allocation of the remaining shares is 
drawn. " 
 
Question 
 
3. Podría Japón aclarar cómo funciona el sorteo en caso de que se solicite un volumen de 
contingente mayor al disponible. 
 
Question  
 3. Could Japan clarify how the draw works in case of a larger volume of requests than the available quota? 
 
RESPONSE  The lottery is held only in exceptional cases where total applied quantity is expected to 
exceed quantity to be allocated. In fact, the lottery is rarely held. In the said case, METI 
holds an open lottery prior to the quota application day to decide the order of 
application among applicants impartially. 
 
The detailed lottery process can be found on  METI website below (in Japanese only). 
http://www.meti.go.jp/policy/ external_economy/trade_con trol/boekikanri/download/
import/2005/20050218_079_im.pdf  
 
Part II: Questions regarding the Government Report – WT/TPR/G/310 
 
Página 42 (párrafo) 3.48) 
 3.48. En el cuadro 3.5 se indican las principales leyes de aplicación del Acuerdo sobre Medidas 
Sanitarias y Fitosanitarias (Acuerdo MSF) en el Japón, junto con los organismos competentes en 
cada caso.  
Page 42 (paragraph) 3.48) 
 3.48. Table 3.5 shows the main laws of the Agreement on Sanitary and Phytosanitary Measures (SPS Agreement) in Japan, together with the competent bodies in each case. 
 WT/TPR/M/310/Add.1 
 
- 139 - 
 
Question 
 
4.  Can Japan please provide the contact informat ion of the office in charge of the sanitary 
authorization and the specific requirements for the importation of dairy products? 
 
Question 
 
5. Can Japan please provide the contact informat ion of the office in charge of the sanitary 
authorization and the specific requirements for the importation of dairy products?  RESPONSE 
 
1.  Contact information  
The contact information of Japanese sanitary authorization is as follows. Since Japan 
does not have specific email address as co ntact point, please contact us through SPS 
Enquiry Point (enquiry@mofa.go.jp) in case of any inquiries on food safety, animal 
health or plant protection: 
 (a)  Food safety  
Policy Planning and Communication Division,  
Department Food Safety,  Pharmaceutical and Food Safety Bureau, 
Ministry of Health, Labour and Welfare (MHLW) 
 (b)  Animal health 
 
International Animal Health Affairs Office, Animal Health Division, Food Safety and Consumer Affairs Bureau, 
Ministry of Agriculture, Forestry and Fisheries (MAFF) 
 (c) Plant protection 
 
Plant Quarantine Office, Plant Protection Division, 
Food Safety and Consumer Affairs Bureau, 
Ministry of Agriculture, Forestry and Fisheries (MAFF)  2.  Requirements on impo rtation of dairy products 
 
Under the Food Sanitation Act, importers need  to submit notification when they import 
food products to Japan. All dairy products im ported are required to meet the Act and the 
standards of Ministerial Ordina nce on Milk and Milk products concerning Compositional 
Standards, etc.   
Please refer to the following websites for more details: 
 (a) Food Sanitation Act http://www.japaneselawtrans lation.go.jp/law/detail/ ?id=12&vm=04&re=01&new=1  
 
(b) Ministerial Ordinance on M ilk and Milk products concerni ng Compositional Standards, 
etc.  
http://www.mhlw.go.jp/english/ topics/foodsafety/dl/t-1.pdf 
 
 
 
   
 WT/TPR/M/310/Add.1 
 
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 13. SINGAPORE 
Part I: Questions regarding the Secretariat Report 
 
II Trade and Investment Regime 
 
Investment regime: Secretaria t Report, Page 23 (Para. 2.21) 
 
Regarding the six National Strategic Special Zones (NSSZs) highlighted in the report:  
a. How are the NSSZs different from the "Comprehensive Special Zones" that were established 
in 2011?  b. Are there specific industries that each of the zones is looking to develop, particularly the 
Tokyo and Kansai zones which would be "bases for international business and innovation"? 
 c. What are the benefits that foreign investors enjoy if they were to invest in these zones, as 
opposed to other parts of Japan? 
 RESPONSE 
 
a. In the system of Comprehensive Special Zone (CSZ), the central government approves the application from the local governme nt based on the initiative of regions. In 
the framework of CSZ, it was hard to pr omote ambitious regulatory reforms because 
inter-ministerial coordination was limited to  the working level. In contrast to CSZ, 
National Strategic Special Zones (NSSZ) is inte nded to achieve bold structural reform led 
by the central government by forming the project for which private companies, local 
governments and central government work together. 
 b. In both Tokyo and Kansai areas, the government of Japan aims to form a hub for 
international business and innovations as we ll as international innovation centers in 
medical care, etc.  c. When the project is included in the a pproved zone plans, foreign investors will 
have the same right as Japanese to enjoy the benefit of exceptional treatment, tax 
reliefs and interest subsidies.  
III  Trade Policies and Practices by Measure 
 
Standards and other technical requirements : Secretariat Report, Page 40 (Para. 3.55) 
 
Singapore notes that Japan participates in the International Conference on Harmonisation toward 
the harmonisation of pharmaceutical standards / re gulations. Is Japan in the process of engaging 
in any bilateral Good Manufacturing Practices (GMPs) Mutual Recognition Agreements (MRAs), as part of furthering the harmonisation of standards for pharmaceutical products? 
 
RESPONSE  
As you know, Japanese inspection auth ority (MHLW, PMDA and the Prefectures 
Inspectorates) became a member of PIC/ S last July. An accession to PIC/S may 
guarantee that a PIC/S participating auth ority has reached a certain level of GMP 
inspection ability, but it does not necessari ly guarantee the equivalence of the ability 
among the PIC/s participating authorities. Ther efore, in order to conclude bilateral Good 
Manufacturing Practices (GMPs) Mutual Reco gnition Agreements (MRAs), we need to 
especially discuss this issue between Japan and each country. 
 
IV Trade Policies in Selected Sectors  
Maritime Transport (MOT): Secretar iat Report, Page 104 (Para. 4.125) 
 Singapore notes that cabotage trade is restricted to Japanese flag carriers, although under treaties 
of friendship, commerce and navigation, Japan allows ships to access cabotage services on a WT/TPR/M/310/Add.1 
 
- 141 - 
 
reciprocal basis by obtaining permits from the Ministry of Land, Infrastructure, Transport and 
Tourism (MLIT). Singapore would like to seek clarification on the condition(s) under which these permits (for cabotage services) will be issued, and whether foreign-flagged vessels can participate in the Japanese cabotage trade with these permits. 
 
RESPONSE  Only Japanese vessels are a llowed to transport passengers or goods between ports of 
Japan under the ship law.  
To obtain the special permission from the Mini ster of MLIT-Japan, the services should be 
in line with the following criteria: 
 The transportation of passengers or g oods by foreign flagged vessels between 
ports of Japan should not cause any obstac les with a view to ensuring sustainable 
water transport services in Japan. 
 The transportation of passengers or g oods by foreign flagged vessels between 
ports of Japan should not cause any obst acles in domestic shipping services 
provided by Japanese shipping companies. 
 
 
  WT/TPR/M/310/Add.1 
 
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 14. ARGENTINA 
I. Report by Japan - WT/TPR/G/310 
 
1. Paragraph 4.9 (Agricultural sector reform) 
 
This paragraph indicates that the Government of Japan will proceed with a reform of its 
agricultural sector with the goal of increasing annual exports of agricultural, forestry, fishery and 
food products. 
 Question 
 
a) What does this reform consist of? 
b) When will it come into force? 
 
RESPONSE 
 The detail of agricultural reform are explai ned in paragraph 4.18 of Japan's report. 
Regarding export, Japan aims to raise th e amount of annual exports of Japanese 
agricultural, forestry and fishery products and foods to one trillion yen by 2020 based on 
the export strategy which was formulated in 2013.  
2. Paragraph 4.20 (Agricultural sector reform) 
 This paragraph states that "the Government will promote constant reforms of the agricultural 
sector and will review the Basic Program for food, agriculture and rural areas in line with the mid 
and long term vision of its agricultural policy".  
Question 
 
(a) Could Japan provide further detail on its mid and long term vision of Japanese agricultural 
policy? 
(b) What is this vision? 
 RESPONSE 
 
The current Basic Plan for food, agriculture and rural areas was formulated in 2010. The 
plan is reviewed about every 5 years under the Food, Agriculture and Rural Areas Basic 
Act. The plan shall show the direction of agri cultural policy and the target rate of food 
self–sufficiency etc.  II. Report by the Secretariat - WT/TPR/S/310 
 1. Paragraphs 1 and 1.4  
Both in paragraphs 1 and 1.4 of the Secretariat's Report reference is made to the "ambitious 
reforms program" that Japan has been implementing since December 2012 to "overcome deflation and revitalize its economy". It includes the introduction of fiscal stimuli (around 
100.000 million US$ in January 2013, approximately 2% of GDP and another 53.000 million US$ in 
December 2013, amounting to 1% of GDP).  Question 
 Could Japan provide further details over the sectors that benefited from said fiscal stimuli and the contents therein? (What did they consist of?) 
 
RESPONSE  
FY2012 supplementary budget consists of the following measures: 
 (i) Promoting reconstruction and disa ster prevention 3.8 trillion yen; 
(ii) Promoting private investment and suppo rt for SMEs etc. 3.1 trillion yen; and, WT/TPR/M/310/Add.1 
 
- 143 - 
 
(iii) Vitalizing local economy etc. 3.1 trillion yen. 
 
FY2013 supplementary budget consists of the following measures:  
(i) Promoting innovation etc. for enhanc ing the competitiveness 1.4 trillion yen; 
(ii) Support for women, young people, the elderly and the disabled 0.3 trillion yen; 
(iii) Acceleration of recons truction and disaster prevention 3.1 trillion yen; and, 
(iv) Mitigating negative impacts of consum ption tax rate increase to 8% 0.6 trillion 
yen.  
2. Paragraph 4.11 
This paragraph reveals that in December 2013 a review of the "Basic plan for food, agriculture and 
rural areas" commenced, which is reviewed every 5 years, and that the new Plan will set as 
objectives the doubling of incomes in rural areas in the next 10 years through demand stimuli (in 
domestic and export markets), improvements in  supply value chains, amongst other goals. 
Question 
 
(a) Could Japan provide further detail over how it  will proceed with stimulating demand? What 
instruments will Japan use? (both for domestic and external demand). 
 (b) Also, could more details be provided on how Japan plans to improve supply value chains? 
 
(c) Which policies or instruments will be implemented hereof? 
 
RESPONSE 
 
a) Japan is boosting the demand for agricultur al products by taking several measures - 
promoting exports by spreading of Japane se cuisine and Japan's dietary culture, 
developing new domestic markets throug h collaboration among the medical care, 
welfare, food and agricultural sectors, prom otion of consuming vegetable for processing 
and/or industrial uses, and promoting the use of local products in school lunches, for 
example. 
 
b), c) The policies and instruments including the improvement of supply value chains are 
being prepared and will be released as the new "Basic plan for food, agriculture and 
rural areas" by the end of March 2015. 
 3. Paragraph 4.19 
 
This paragraph suggests that the fill rates for tariff rate quotas in the agricultural sector have remained fairly stable in recent years, but that they also vary considerably from one TRQ to another. Thus, while in some cases the quota fill rate exceeds 90%, fill rate s for other quotas have 
remained constantly below 40%. 
 Question 
 Why is it that these latter TRQs have consistently not surpassed a 40% fill rate?  
RESPONSE 
 The underfill of TRQs for some products is ma inly due to the decline of their domestic 
consumptions related to these TRQs. 
 
III.  Other Questions 
 
Questions relating to trade and environment: Fishery Subsidies. 
 1. For the period under review, could the delegati on of Japan inform over its fishing activities 
outside the Japanese exclusive economic area, at global levels as well as the break down by 
maritime or exclusive economic areas of other countries: WT/TPR/M/310/Add.1 
 
- 144 - 
 
  
 
 a) In tons and estimated value of fished product and captures 
b) Number of utilized watercraft/ships 
c) Allocated subsidies. 
RESPONSE 
 
- There is no category of high seas in the statistics of fishing volume and value in 
Japan. The data of "pelagic" described in  Table 4.11, 83 page of the secretariat 
report represents the data on the sea outside Japan`s EEZ and inside other 
countries' EEZ. It includes not only the data on the high seas, but also the data on other seas.   
 
- There is no category of high seas conc erning the registration of the vessels. 
 - There is no budget limited to fish ing activities in the high seas. 
 
1. Could Japan provide information on subsidies fo r the capture/slaughter of dolphins in TAIJI, 
denounced by the international press, particularly in 2014? 
"The annual dolphin massacre in Taiji, Japan, takes place every year between the months of 
September and April. According to the Japanese Fishing Investigation Agency , 1.512 dolphins were 
captured in the Wakayama Coast Guard Jurisdiction in 2014 for human consumption or dolphin 
resale. Most of them were caught in Taiji". 
http://sociedad.elpais.com/sociedad/2014/01/20/actualidad/1390235947_979153.html  
"Taiji told to stop dolphin carnage or sister ties end" . The Japan Times . August 25 2014. 
Matsutani, Minoru, " Details on how Japan's dolphin catches work ", Japan Times , 
September 23, 2014, p. 3. 
http://www.town.taiji.wakayama.jp/kankou/sub_01.html  
http://www.town.taiji.wakayama.jp/kankou/sub_01.html  
http://www.japanprobe.com/2014/taiji-dolphin-hunt-begins-about-100-dolphins-and-50-pilot-
whales-driven-into-cove/   
Sea Shepherd Conservation Society - News , 2014. Sarah Neuman, " Time's Up for Dolphins in 
Taiji", The Huffington Post , September 1, 2014. EFE Japón 20 JAN 2014 - 17:39 CET14  
http://pladesemapesga.com/Article49530.phtml  
RESPONSE 
 
There is no subsidy from the national government for capturing dolphins in Taiji in 2014. 
 
1. Subsidies for Japanese Whaling activities 
(a) For the period under review, could Japan inform over subsidies allocated for these 
activities. 
(b) Can Japan specify when it will cease to subsidize whaling activities? (c) Can Japan reveal when it will prohibit whaling for Japanese nationals? 
(d) Could Japan confirm that in 2014 the amount of 2.150.000.000 Yens were diverted 
from the budget for the reconstruction of devastated regions by the March 2011 tsunami and were destined for the salvag ing of the whaling industry, with ample 
progress achieved in relation to its destroyed infrastructure? 
(e) Could Japan confirm the findings of the International Fund for Animal Welfare (IFAW) 
report, according to which, for 2014, whaling activities solely survive in Japan due to 
the subsidies its industry receives? 
This report, based on data sourced from th e Japanese government clearly shows that 
millions of dollars in public subsidies have been used to salvage the whaling industry due to the lack of consumption of whale meat. The current stock of unsold whale meat WT/TPR/M/310/Add.1 
 
- 145 - 
 
has risen to almost 5.000 tons, around four times more than 15 years ago 
(http://www.icb.org.ar/seccion es.php?op=ver&seccion_id=157 .). 
(f) Could Japan inform whether it is taking into consideration the call made by different 
entities and the international press for the termination of whaling practices and the 
promotion of whale-watching tourism along its coast, a pro-economy and pro-whale 
industry that does not require subsidie s and brings numerous gains above all for 
coastal communities. (According to the request report of NGOs to the GBA 
http://bit.ly/RU5N6Y/2015 
 
Japanese Industry "Dead in the water"  http://bit.ly/UmRTOw/2014 
http://www.icb.org.ar/noticias.php?noticia_id=63)- 
 
RESPONSE 
 - There is no subsidy for whaling activities. 
However, there is a budget supporting research on whales to elucidate the 
competition between fishing activities and predation by whales over prey species in coastal area of Japan. 
- Regarding c), while commercial whaling ac tivities on species covered by the 
International Convention for the Regulati on of Whaling are currently suspended, 
Japan has no plans to prohibit whaling activities. 
- Regarding d), there is no such budget in 2014. 
 
4.  Doha Round Negotiations on fishery subsidies 
 
The foremost contribution the WTO can make to trade and environment is to comply with the Doha Round mandate for fishery subsidies, which has b een reaffirmed in paragraph 173 of the final 
document of the United Nations Conference on Sustainable Development of Rio +20.
2 
In order to achieve this goal: 
 
(a) Could Japan explain its willingness to negotiate fishery subsidies as a primordial issue of the Doha Round, much more so than other issues of the negotiation of rules such as antidumping? 
 
(b) Which specific actions is Japan willing to take in the WTO to modify multilateral norms on 
fishery subsidies according to what Japan has committed to in the Doha Round mandate on fishery subsidies and paragraph 173 of the final docume nt of the United Nations Conference for 
Sustainable Development of Rio +20? 
 
RESPONSE 
 
Japan's opinion and action on the WTO-DDA ne gotiations are indicated in the proposal, 
TN/RL/GEN/171 submitted in 2011.  
                                               
2 Final Document "The Future We Want": 173. We re affirm our commitment in the Johannesburg Plan of 
Implementation to eliminate subsidies that contribute  to illegal, unreported and unregulated fishing and 
overcapacity, taking into account the importance of this  sector to developing countries, and we reiterate our 
commitment to conclude multilateral disciplines on fisher ies subsidies that will give effect to the mandates of 
the World Trade Organization Doha Development Agenda46 and the Hong Kong Mi nisterial Declaration47 to 
strengthen disciplines on subsidies in the fisheries sector, including through the prohibition of certain forms of fisheries subsidies that contribute to overcapacity and overfishing, recognizing that  appropriate and effective 
special and differential treatment for developing and leas t developed countries should be an integral part of 
World Trade Organization fisheries subsidies negotiation, taking into account the importance of the sector to development priorities, poverty reduct ion and livelihood and food security  concerns. We encourage States to 
further improve the transparency and reporting of exis ting fisheries subsidies programmes through the World 
Trade Organization. Given the state of fisheries resour ces, and without prejudicing the Doha and Hong Kong 
ministerial mandates on fisheries subsidies or the need to conclude these negotiations, we encourage States to 
eliminate subsidies that contribute to overcapacity an d overfishing, and to refrain  from introducing new such 
subsidies or from extending or enhancing existing ones. WT/TPR/M/310/Add.1 
 
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 Informe de la Secretaria – WT/TPR/S/310 
 
1.  Párrafo 2.19 (Régimen de inversión)  
No queda claro en el párrafo cuáles son las disposiciones normativas que afectan o benefician a la 
inversión extranjera. Se menciona a la Ley de promoción del Japón que prevé incentivos para la inversión y también otras Leyes como la Ley de cambios y comercio exterior, la Orden relativa a la 
inversión extranjera directa y la Orden de Cambios 
 Pregunta 
 
¿Podrían detallar todas las disposiciones normativas referida a la inversión extranjera, los 
beneficios o incentivos que se pueden obtener a partir de las mismas y los requisitos que debe cumplir una empresa extranjera para invertir en Japón? 
 
1. Paragraph 2.19 (Investment regime)  
The paragraph does not make clear the regulatory provisions which affect or benefit foreign 
investment. The Promotion Law of Japan which provides incentives for investment and also other laws such as the Law on Foreign Exchange and Foreign Trade, the Ordinance related to direct foreign investment and the Order of Changes are mentioned. 
 
Question 
 
Can you describe all regulatory requirements relating to foreign investment, the benefits or 
incentives that can be obtained from them and the requirements to be met by a foreign company to invest in Japan? 
 
RESPONSE 
Japan is conducting activities to carrying out the necessary institutional reforms with 
the Council for Promotion of Foreign Direct In vestment in Japan as its key institution. 
For the prompt improvement of environment for inward FDI, the Council for Promotion 
of Foreign Direct Investment in Japan priori tizes its tasks, which include but not limited 
to, strengthening multi-language services, cu ltivating personnel with a global outlook. 
 
Having the basic concept of 'the freedom of foreign transactions' and 'the minimum 
necessary control or coordination', Japa n implements inward direct investment 
regulations from the view point of 'national se curity', 'maintenance of public order' and 
'protection of public safety', etc., complyin g with international rules such as the OECD 
Code of Liberalization of Capital Movements. Under the Foreign Exchange and Foreign Trade Act, submission of prior notification is  required for limited industrial sectors listed 
in the Act. The Government of Japan handle s hundreds of notifications every year, and 
over the past five years (s ince 2009), all notifications have passed the screening. 
 The Government of Japan is offering the follo wing tax incentives and reduction of patent 
fees under the "Act for Promotion of Japan as  an Asian Business Center ", in order to 
attract global enterprises' R&D and Regional Headquarters.  
Main Incentives: 
 1. Corporate tax breaks  
20% income deduction for 5 years (This tax incentive will end on 31 March 2015) 
 2. Income tax breaks  Deferral of taxation upon exercising stock options granted by overseas parent companies to the 
time of selling the shares 
 3. Reduction of patent fees 
50 % reduction of examination fees and patent fees for patent inventions (Applicable only to 
SMEs)  WT/TPR/M/310/Add.1 
 
- 147 - 
 
Main Requirements: 
 1. R&D centre:  
1) The company dedicated to R&D business. 
2) The total of R&D expenses is not less than 100 million yen each year. 3) The number of employees is not less than 10 an d is expected to exceed 25 in the final year. 
 
2. Regional Headquarters  1) The company dedicated to supervisory business. 
2) The company's capital is not less than 100 million yen. 
3) The number of employees is not less than 10 an d is expected to exceed 18 in the final year. 
 
2. Párrafo 2.20 
 El párrafo menciona el establecimiento en 2013 de la Ley de Zonas Especiales Estratégicas 
Nacionales que prevé la designación de zonas donde cabe esperar una reforma en la 
reglamentación para impulsar la inversión. 
Pregunta 
  
¿Podrían explicar en detalle cuales son las funciones de este Consejo y detallar que beneficios 
traería para las empresas extranjeras que desean invertir en Japón?  
2. Paragraph 2.20 
 The paragraph mentions the establishment in 2013 of  the Law on Special National Strategic Areas 
planned for the designation of areas where regula tory reforms are expected to boost investment. 
 Question 
 
Can you elaborate on what are the functions of this Council and describe what benefits it will 
provide for foreign companies wishing to invest in Japan?  
RESPONSE 
As part of the National Strategic Special Zone (NSSZ) act of 2013, the Council on the 
NSSZ is supposed to submit its opinion to th e Prime Minister regarding a) designation of 
zones, b) basic NSSZ guidelines, c) basic gu idelines for each zone, d) zone plans for 
each zone and e) "Employment Guidelines," wh ich will be utilized for clarifying working 
and employment conditions. The Council is  also required to review and discuss 
important NSSZ matters. 
 
The NSSZ act of 2013 includes regulatory reforms in the areas of medical care, employment, education, urban regenerati on and development, agriculture, and 
utilization of historic buildings. Examples are as follows: i) a ccelerated assessment 
procedures for advanced medical treatment to make it possible to use medicines at 
specific hospitals or medical centers when th e medicines have already been approved in 
six Western countries but not yet in Japan, ii) exceptions to regulations governing the 
number of beds for providing high-standar d medical care, iii) establishment of an 
Employment Consultation Center to provide individual consultation services based on 
"Employment Guidelines"(published in Ap ril 2014), in order to support foreign 
companies and venture businesse s by clarifying employment and working conditions, iv) 
deregulation of road occupations in order to  promote MICE and make  it more attractive, 
and v) exceptions to regulations governing ag ricultural production corporations to allow 
entry by private companies. In addition to regulatory reforms, the NSSZ also introduces 
tax reliefs and interest subsidies.  
When a project is included in the approved zone plans, similar to Japanese investors, 
foreign investors may enjoy the benefits of  exceptional treatment, tax reliefs and 
interest subsidies. WT/TPR/M/310/Add.1 
 
- 148 - 
 
  
 
 3. Párrafo 2.23 
 El párrafo menciona la creación del Consejo de Promoción de Inversión Extranjera Directa y describe superficialmente algunas de sus actividades. 
Pregunta 
  
¿Podrían explicar en detalle cuales son las funciones de este Consejo y detallar que beneficios 
traería para las empresas extranjeras que desean invertir en Japón? 
 3. Paragraph 2.23  
The paragraph mentions the creation of the Council for the Promotion of Direct Foreign Investment 
and superficially describes some of their activities.  
Question 
 
Can you elaborate on what are the functions of this Council and describe what benefits it will 
provide for foreign companies wishing to invest in Japan? 
 RESPONSE  
The mission of Council for Promotion of Foreig n Direct Investment is to have relevant 
government bodies facilitate structural re forms in order to improve the business 
environment for foreign companies. The comp anies will benefit from  the better business 
environment. 
 4. Párrafo 3.1 (Procedimientos y requisitos aduaneros) 
 
En este párrafo el informe menciona que, para re alizar una importación desde Japón, es necesario 
presentar una declaración aduanera de importación. Además, pueden exigirse otros documentos para la gestión del riesgo, como el conocimiento de embarque, la factura comercial o la lista de 
bultos. Con el establecimiento del Portal Común para la Ventanilla Única de Nueva Generación, se 
unificaron las formalidades de diversos organismos para presentar solicitudes por medios electrónicos. 
 
Preguntas 
  
a)  Se solicita enumerar y explicar en detalle cada uno de los documentos que se exigen para 
realizar una importación. 
b)  ¿Cuáles son las formalidades que se unificaron a partir del Portal Común para la Ventanilla 
Única de Nueva Generación? 
 
4. Paragraph 3.1 (Customs procedures and requirements)  
In this paragraph, the report mentions that for an import from Japan, it is necessary to submit a 
customs import declaration. In addition, other documents may be required for risk management, such as the bill of lading, commercial invoice or packing list. With the establishment of the 
Common Portal for New Generation Single Window formalities various organizations united for 
applications to be submitted electronically.  Questions 
 a)  It is requested that you list and explain in detail each of the documents required to make an 
import. 
 
b)  What are the formalities which were unified from the Common Portal for the New Generation 
Single Window? 
 WT/TPR/M/310/Add.1 
 
- 149 - 
 
RESPONSE 
 a)  When an import declaration is submi tted, Customs may require the submission of 
additional documents necessary to verify th e contents of the declaration for giving 
an import permission. These documents include, but are not limited to, invoices, 
bills of lading, packing lists, import licen ses(if necessary), an d certificates of 
origin(if necessary). 
b)  The new Single Window allows traders and other users, to input data common for 
trade-related procedures, including customs procedures, port procedures, and animal, plant and food quarantine procedur es, with a single entry, and to submit 
applications necessary for such procedures. 
 
5. Párrafo 3.2  En el párrafo se menciona que la Administración de Aduanas del Japón puso en marcha en marzo 
de 2006 el Programa de operadores económicos autorizados y desde entonces lo ha desarrollado a 
fin de simplificar los procedimientos aduaneros y facilitar el comercio legítimo. Además, en el mismo párrafo, se explica que las declaraciones de importación pueden presentarse antes de la 
llegada de la carga. 
 Preguntas 
 
a) ¿Cuáles son los requisitos para obtener la categoría de "operador económico autorizado"? 
b) ¿Cuáles son los beneficios que se obtienen a partir de la categoría de "operador económico 
autorizado"? 
c) ¿Con cuánto tiempo de antelación se pueden presentar las declaraciones de importación? 
 5. Paragraph 3.2 
 
This paragraph mentions that the Customs Administration of Japan in March 2006 launched the Authorized Economic Operator Program and since then it has moved to simplify customs procedures and facilitate legitimate trade. In addition, the same paragraph explains that the 
import declarations can be made before the arrival of the cargo. 
 Questions 
 a)  What are the requirements for the category of "Authorized economic operator"? b)  What are the benefits obtained from the "Authorized economic operator" category? 
c)  How much time in advance can the import declarations be submitted? 
 RESPONSE  
a)  The main requirements include: 
 - Establishment of an internal complianc e program including security standards 
- Capability of conducting proper and reliable business operations 
- No legal violation records for a certain period of time. 
 
b)  The major benefit besides the one descri bed in para. 3.2 of the Secretariat Report 
is a decline in the frequency of document ary examination and physical inspection 
of the AEO import and export cargoes. 
 
c)  An import declaration can be submitted in  advance of cargo's arrival, but should be 
submitted after reporting to Customs the information on the import cargo on its cargo manifest. 
 
7. Párrafo 3.4  
En este párrafo el informe indica que Japón realiza su propia evaluación de riesgos en cuanto a los 
operadores económicos autorizados de otros países.   WT/TPR/M/310/Add.1 
 
- 150 - 
 
  
 
 Pregunta 
 
a)  ¿En qué consiste dicha evaluación?   
7. Paragraph 3.4 
 In this paragraph, the report indicates that Japan conducts its own risk assessment as authorized 
economic operators of other countries. 
 Question 
 
a)  What does this assessment consist of? 
 RESPONSE 
Considering the nature of the requested in formation, the Government of Japan cannot 
disclose such information.  
8. Párrafo 3.6 (Valoración en aduana) 
 En este párrafo el informe indica que Japón modificó algunas de las disposiciones de las leyes y reglamentos aduaneros relativas a la determinación del valor en aduana de las mercancías 
importadas con objeto de aclararlas, en particular por lo que se refiere a las transacciones 
complejas.   
Pregunta 
 
a)  Se solicita enumerar específicamente las disposiciones de leyes y reglamentos aduaneros 
que se modificaron y en qué consisten dichas modificaciones. 
 8. Paragraph 3.6 (Customs valuation)  
In this paragraph, the report indicates that Japa n amended certain provisions of the customs laws 
and regulations relating to the determination of the customs value of imported merchandise for the purpose of clarification, in particular with respect to complex transactions. 
 
Question 
 
a) It is requested that you specifically list the provisions of customs laws and regulations that 
were amended and what these amendments consisted of. 
 RESPONSE 
 
Please see the WTO document G/VAL/N/1/JPN/2.  
9. Párrafo 3.7 
 En este párrafo el informe explica que todos los importadores deben presentar una declaración de 
aduana, normalmente después de que las mercancí as hayan entrado en la zona bajo control 
aduanero (Hozei); ahora pueden hacerlo en determinadas condiciones sin que las mercancías hayan entrado en dicha zona, por ejemplo, los importadores autorizados que presenten una declaración de importación mediante el Sistema Electrónico de Tratamiento de Datos. 
 
Pregunta 
  
a)     ¿Cuáles son todas las condiciones permitidas bajo las cuales el importador puede presentar 
la declaración aduanera sin que las mercaderías hayan entrado en la zona bajo control aduanero? 
 
9. Paragraph 3.7  In this paragraph, the report explains that al l importers must submit a customs declaration, 
usually after the goods have entered the bonded zone (Hozei); they can now do so under certain WT/TPR/M/310/Add.1 
 
- 151 - 
 
conditions without the goods having entered the zone, for example, importers authorized to 
submit an import declaration through the Electronic Data Processing System.  Question 
 a)  What are all the permitted conditions under which the importer can present the customs 
declaration without the goods having entered the area under customs control? 
 
RESPONSE  The importer can file a customs declarat ion without bringing the goods into the 
customs-controlled area under the following conditions: 
  The importer shows that the goods satisfy certain requirements including the one 
that the nature and shape of the goods do not cause any difficulties in the 
examination, and the said importer get approval from the customs; or 
 An AEO importer or AEO customs broker uses the electronic data processing 
system (NACCS) to make an import declaration. 
 10. Párrafo 3.11  
En este párrafo el informe menciona que, a los productos que "no han sido obtenidos totalmente", 
se les aplican, caso por caso, criterios específicos basados en las normas sobre cambio de clasificación arancelaria, normas de elaboración y normas de determinación del valor añadido. Con 
arreglo a las normas de origen establecidas en el marco de los AAE y del SGP, se aplican esos 
criterios específicos a diversos productos.  
Pregunta 
 
a)   ¿Cuáles son los criterios específicos mencionados? b)   ¿Cuáles son exactamente los productos a los que se les aplican? 
 
10. Paragraph 3.11  
In this paragraph, the report mentions that for products which "have not been wholly obtained," 
case-specific criteria based on the rules regarding change of tariff classification, processing rules and standards for determining the added value shall be  applied. According to the rules of origin set 
out in the context of AAEs and the GSP (Generalized Sy stem of Preferences), this specific criteria is 
applied to various products.  Question 
 a)  What is the specific criteria mentioned? b)  What exactly are the products to which these are applied? 
 
RESPONSE  
a)  A product produced using non-originatin g materials must satisfy certain conditions 
to be qualified as an originating product. The conditions are referred to as Product 
Specific Rules (PSRs) in Japanese GSP and the EPAs that Japan is a Party to. Basically, the PSRs are defined on a prod uct by product basis for the whole HS at 
the Sub-heading level (HS 6 digit). Some EPAs provide for a general rule and a 
shorter list of PSRs for specific products. There are mainly three types of rules; the 
rule for change of tariff classification (either CC (Change of Chapter (HS 2 digit), 
CTH (HS 4 digit) or CTSH (H S 6 digit)), the rule for processing (description of 
specific processes), and the rule for valu e added (40% is a basic value addition 
standard, but it varies depending on the products/agreements). 
 
b)  For detailed information on the products  subject to PSRs in the EPAs/GSP, please 
refer to the links below (English website of  Ministry of Foreign Affairs, Japan) 
-GSP 
http://www.mofa.go.jp/polic y/economy/gsp/product_s.pdf  WT/TPR/M/310/Add.1 
 
- 152 - 
 
  
 
 -EPAs 
http://www.mofa.go.jp/polic y/economy/fta/index.html  
(See the Annex concerning  PSRs in each EPA) 
 
11. Párrafo 3.19 (Aranceles consolidados) 
 En este párrafo el informe explica que Japón ha consolidado el 98,3% de sus líneas arancelarias 
(no están consolidadas 159 líneas) las líneas sin consolidar comprenden principalmente productos 
de la pesca (pescado, crustáceos, algas), aceites de petróleo, y madera y manufacturas de madera.  
Pregunta 
 
a)   ¿Cuál es el motivo por el cual todavía existen 159 líneas arancelarias por consolidar? 
 
11. Paragraph 3.19 (Consolidated tariffs)  
In this paragraph, the report explains that Ja pan has consolidated 98.3% of its tariff lines (159 
lines are unconsolidated); the unconsolidated lines mainly consist of fishery products (fish, shellfish, seaweed), petroleum oils, and wood and wooden articles.  
Question 
 
a)  What is the reason there are still 159 tariff lines to consolidate? 
 
RESPONSE  
Some of the tariff lines are unbound. These tariffs are set in a consistent manner with 
the WTO agreement.  Japan will continue to engage in the discu ssion in the WTO and set appropriate tariffs, 
considering the progress and results of the DDA negotiations. 
 12. Párrafo 3.25 (Prohibiciones, restricciones, licencias y contingentes de importación) 
 
Según este párrafo los solicitantes de contin gentes deben cumplir diversos criterios.  
 
Pregunta 
 
a)  ¿Cuáles son exactamente estos criterios?  
12. Paragraph 3.25 (prohibitions, rest rictions, licenses and import quotas) 
 According to this paragraph, quota applicants must meet several criteria. 
 
Question 
 
a)  What exactly is this criteria? 
 RESPONSE  
Import quota of fishery products is a syst em aimed at conserving exhaustible natural 
resources as well as adjusting domestic suppl y and demand. In this regard, METI checks 
applied fish species and quantities, and consid ers if the importers are actually able to 
import the products based on their track re cords as importers of some kinds of food 
products and other information. Thereafter ME TI decides on the import quota allocation. 
The import notices and other relevant info rmation can be found on the METI website 
below (in Japanese only). 
http://www.meti.go.jp/policy/ external_economy/trade_con trol/boekikanri/import/wa
riate/suisanbutsuhappyo.htm  
 WT/TPR/M/310/Add.1 
 
- 153 - 
 
13. Párrafo 3.27 
 En este párrafo el informe dice que el Japón aplica un sistema de confirmación previa para reunir datos sobre determinadas importaciones. El sistema tiene por objeto asegurar que esas 
importaciones estén destinadas a usos específicos y verificar la documentación y los requisitos de 
origen. Se necesita la confirmación previa del Ministro de Economía, Comercio e Industria, o de otros ministros competentes. 
 
Pregunta 
 a)  ¿Podría desarrollar el uso del sistema mencionado y sus funciones? 
b)  ¿Cuáles son los otros ministerios competentes que deben realizar la confirmación previa? 
 13. Paragraph 3.27 
 
In this paragraph, the report states that Japan applies a system of prior confirmation to collect 
data on certain imports. The system aims to ensure that such imports are intended for specific 
uses, and verify documentation and origin requirements. Prior confirmation is required from the 
Minister of Economy, Trade and Industry, or other competent ministers.  Question 
 a)  Could you expand on the use of such a system and its functions? b)  What are the other competent ministries which should carry out prior confirmation? 
 
RESPONSE  
a)  Prior confirmation is a system to strict ly check, prior to the arrival of goods in 
Japan, authenticity of the certificates i ssued by exporting countries required under 
the international and domestic laws. 
 
b)  As for the Prior Confirmation system, other competent Ministries are as follows: 
  Ministry of Education, Culture, Spor ts, Science and Technology (MEXT) for 
specified foreign cultural property 
 Ministry of Agriculture, Forestry and Fisheries (MAFF) for foot-and-mouth disease 
vaccine (excluding those for clinical trial). 
 
14. Párrafo 3.32 (Normas y otras prescripciones técnicas)  En este párrafo el informe indica que, en Japón, el marco jurídico de las normas y los reglamentos 
técnicos apenas ha variado desde su último examen.  
 Pregunta 
 a)     ¿Existe un sitio Web donde esté disponible la totalidad de la reglamentación técnica de Japón 
en materia de importaciones y exportaciones? 
 
14. Paragraph 3.32 (Standards and other technical requirements)  In this paragraph, the report indicates that, in Japan, the legal framework of standards and 
technical regulations has hardly changed since its last review. 
 Question 
 a)  Is there a website where all Japan's technical regulations on imports and exports is 
available? 
 WT/TPR/M/310/Add.1 
 
- 154 - 
 
  
 
 RESPONSE 
 Japan does not have a website that compil es all information on Japan's technical 
regulations. In the case of any inquiry,  please contact Japan's TBT Enquiry Point 
(enquiry@mofa.go.jp). 
 15. Párrafo 3.40 
 
En este párrafo el informe explica que, en Japó n, las autoridades han indicado que, cuando las 
normas internacionales no cumplen las prescripciones vigentes se requieren normas o reglamentos técnicos nacionales. Por ejemplo, el tatami (alfombra tradicional), el futón (colchón japonés), las 
ollas japonesas para cocer arroz, el ventilador eléctrico japonés, los calentadores de bolsillo y la 
mesa baja japonesa con fuente de calor requieren normas nacionales.   
Pregunta 
 
a)  ¿Bajo qué criterios y en qué circunstancias considera Japón que una norma internacional no 
cumpliría con las prescripciones vigentes? 
 15. Paragraph 3.40  
In this paragraph, the report explains that in Japan, the authorities have indicated that when 
international standards do not meet the requirements in effect, national technical standards or regulations are required. For example, tatami (t raditional carpet), futon (Japanese mattress), 
Japanese rice cookers, Japanese electric fan heaters and Japanese pocket and under the table heat 
sources require national standards.  
Question 
 
a)  Under what criteria and under what circumstances does Japan consider that an international 
standard does not meet the statutory requirements in effect? 
 
RESPONSE  
Japan considers that there some cases where an international standard would be an 
ineffective or inappropriate means, which include the cases affected by fundamental 
climatic or geographical factors or fundamental technological problems.  
 
16. Párrafo 3.42  En este párrafo el informe menciona que son 7.873 fábricas nacionales y 859 fábricas extranjeras 
de 21 países y economías las que han sido certificadas para utilizar marcas JIS (Sistema de 
marcas JIS). Este sistema es voluntario, a menos que los reglamentos pertinentes lo exijan para las ventas en el país. Las autoridades afirman que las fábricas nacionales y extranjeras reciben el 
mismo trato con respecto a la certificación de las marcas JIS, y que el Sistema de marcas JIS está 
armonizado a escala internacional sobre la base de la norma ISO/CEI 17065. En octubre de 2014 había 24 organizaciones acreditadas como organismos de certificación de esas marcas. 
 
Pregunta 
  a)  ¿Podría explicar que requisitos o trámites deben cumplimentar las empresas extranjeras 
para obtener esta certificación? 
b)  ¿En qué casos no es voluntario? c)  ¿Podría detallar cuáles son las organizaciones que ya se encuentran acreditadas? 
 
16. Paragraph 3.42  
In this paragraph, the report mentions that th ere are 7,873 national factories and 859 foreign 
factories from 21 countries and economies that have been certified to use JIS trademarks (JIS trademark system). This system is voluntary, unless the relevant regulations require it for sales in the country. The authorities state that domestic and foreign factories are treated equally with 
respect to certification of the JIS marks, and that the JIS marks system is harmonized WT/TPR/M/310/Add.1 
 
- 155 - 
 
internationally based on the ISO / IEC standard 17065. In October 2014 there were 
24 organizations accredited as certifying agencies of these marks.  Questions 
 a)  Can you explain what requirements or procedures must be completed by foreign companies 
to obtain this certification? 
b)  In which cases is it not voluntary? 
c)  Can you detail which organizations are already accredited?  RESPONSE 
 
a)  In order to obtain a JIS mark, foreig n companies as well as domestic companies 
need to pass product testing and the qu ality management system verification. 
Please refer the following URL ( http://www.jisc.go.jp/eng/jis-
mark/pdf/JISpamphlet.pdf ), for more information. 
 
b)  JIS mark system is voluntary. All JISs  are voluntary standards. However, JISs can 
be bases for technical regulations when they are cited in laws. 
 c)  24 certification bodies are accredited at present.  
In order to find the list of all accredit ed certification bodies, please follow the 
instruction below: 
  
1. Go to http://www.jisc.go.jp /eng/jis-mark/newjis-eng.html 
2. Click on the "List of the Accredited Cert ification Bodies for New JIS Mark Scheme" on 
the left side menu 
3. Without any input, just click on the search button at the bottom of the page. 
 17. Párrafo 3.43  
En este párrafo el informe explica que no es obligatorio atenerse a las normas agrícolas para 
importar productos agrícolas en el Japón, con la excepción de los vegetales orgánicos y los productos alimenticios orgánicos elaborados de origen vegetal. La Ley de normas agrícolas del 
Japón faculta a organizaciones 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 
registrados se encargan de la vigilancia y la gestión de esas marcas. Los productores o fabricantes 
extranjeros certificados por organismos de certificación registrados, nacionales o extranjeros pueden aplicar su propio sistema de clasificación y usar en sus productos las marcas JAS. Actualmente hay 28 organismos de certificación extranjeros registrados (18 para productos 
orgánicos y 10 para productos forestales).  
 Pregunta 
  a)  ¿Cual es el motivo por el cual es obligatorio atenerse a las normas agrícolas para importar 
productos vegetales orgánicos y productos alimenticios orgánicos elaborados de origen 
vegetal?  
b)  ¿Cómo pueden organizaciones de terceros países certificar a las empresas según la ley de 
normas agrícolas del Japón?  
c)  ¿Podría detallar en una lista las 28 organizaciones de certificación extranjeros registrados?   
 
17. Paragraph 3.43  
In this paragraph, the report explains that it is not required to comply with agricultural standards 
to import agricultural products to Japan, with the exception of organic vegetables and organic food products of plant origin. The Law of Japan Agricultural Standards authorizes third-party 
organizations to certify companies (e.g., manufacturers), to use JAS marks. The Minister of 
Agriculture, Forestry and Fisheries, registered certifying agencies and registered foreign certifying agencies are responsible for the monitoring and management of these brands. Foreign producers or manufacturers certified by registered certifying agencies, national or foreign, may apply their WT/TPR/M/310/Add.1 
 
- 156 - 
 
  
 
 own classification system and use the JAS marks on  their products. Presently there are 28 foreign 
registered certifying agencies (18 for organic products and 10 for forestry products).  Question 
 a)  What is the reason for which it is required to adhere to agricultural standards to import 
organic vegetables and organic food products of plant origin? 
b)  How can organizations from third countries certify companies under Japan's law of 
agricultural standards? 
c)  Could you elaborate on the list of 28 foreign registered certifying agencies?  
RESPONSE 
 a)  In Japan, because flooding of the labellin g such as "organic", "reduced amount of 
pesticide", etc. of plants and processed f ood of plant origin be came detrimental to 
the consumers' choice, organic labelling on plants (including fungi) and processed 
foods of plant origin are regulated to en sure proper labelling of organic products. 
They can't be labelled as "organic" unle ss they are certified under Organic JAS. 
Thus imported  organic plants and organic proce ssed foods of plant origin are 
required to conform to Organic JAS.   
b)  Regardless of whether it is a domestic organization or not, the organization, those 
who seeks to be accredited as JAS regist ered certifying bodies shall submit an 
application to the Minister of Agri culture, Forestry and Fisheries. 
c)  Presently, there are 26 foreign regist ered certifying bodies (16 for organic 
products and 10 for forestry products). All JAS registered certifying bodies 
including foreign agencies are listed in following website: http://www.maff.go.jp/e /jas/jas/pdf/list_rcb.pdf  
 
ADDITIONAL QUESTION(S)  PREGUNTAS ADICIONALES (POSTERIORES A LA FECHA DEL 9/2/2015) 
 
1. Párrafo 1.25 (Entorno económico, perspectivas) 
 
En este párrafo se indica que el Gobierno de Japón publicó el 24 de junio de 2014 su "Estrategia revisada de revitalización" la cual, con el objetivo de atraer empresas internacionales y convertir al 
país en un centro de comercio de alcance mundial, contempla incrementar el número de 
trabajadores extranjeros y la participación de las mujeres, los jóvenes y las personas mayores en el mercado de trabajo. Asimismo, el Gobierno está estudiando la posibilidad de incluir en la 
normativa laboral una exención que permita a las empresas no remunerar de forma excepcional 
las horas extraordinarias de los empleados de oficina.  1. Paragraph 1.25 (Economic Perspectives) 
 
In this paragraph, Japan states that the Government of Japan published the "revised revitalization strategy" in June 24 2014, which, with the aim of attracting international companies and turn the 
country into a trade center worldwide, plans to increase the number of foreign workers and the 
participation of women, youth and the elderly in the labor market. The Government of Japan is considering to include labor standards of exemption that allows companies do not reward 
exceptional overtime to office employees. 
 Preguntas 
 
¿Cuáles son las medidas que se establecen en la estrategia para incrementar el número de 
trabajadores extranjeros?  
Question 
 
1. What are the measures set out in the strategy to increase the number of foreign workers? 
 WT/TPR/M/310/Add.1 
 
- 157 - 
 
RESPONSE 
 Amid intensifying competition to acquire per sonnel, it is vital to attract high-caliber 
human resources to Japan to further revita lize the Japanese economy and increase its 
competitiveness. In this regard, the Gove rnment of Japan included the concrete 
measures to utilize foreign human resources in  "Japan Revitalization Strategy Revised in 
2014". 
 
(Highly skilled foreign professionals)  In order to promote entry of highly skilled fo reign professionals, a points-based system 
that provides highly skille d foreign professionals with  preferential immigration 
treatment was introduced in May 2012.  
In 2013, the Government implemented measures  aimed at increasing the convenience of 
preferential measures to promote the utilizat ion of the points-based system for highly 
skilled foreign professionals. More specific ally, these related to the relaxing of 
requirements for recognition as a highly ski lled foreign professional, such as revising 
the minimum annual income criterion, as well as eligibility to be accompanied by 
parents or domestic workers. Furthermore, in June 2014, the Act to Amend the Immigration Control and Refugee Recognition Act was enacted to establish a new status 
of residence with an indefinite period of stay targeting highly skilled foreign 
professionals.  
(In the field of construction and shipbuilding) 
 As a temporal urgent measure towards the 2020 Olympics and Paralympics and the like, 
the government will introduce a new system to promote the utilization of foreign human 
resources work-ready for the construction sector while making maximum efforts to 
secure domestic human resources by impr oving working conditions and workplace 
efficiency. Also, a similar measure will be  taken for the shipbuilding sector. The 
Government will start accepting foreign hu man resources under this system at the 
beginning of FY2015.  
In addition, with regard to the fields where an urgent response is required to ensure 
sustainable growth, the Government will conduc t the following initiatives in view of the 
situation where labor shortages are al ready beginning to become apparent. 
 
(In the field of manufacturing)  In light of fears about de-industrialization within Japan due to accelerating overseas 
expansion by Japanese manufacturing indu stry, the Government will develop systems 
that will enable domestic bases to function as mother plants, carrying out production activities based on a division of roles with overseas bases, and which will also facilitate 
research and development and capital in vestment based on this premise. The 
Government will design the specific in stitutional arrangements within FY2014. 
 
(In the field of housekeeping) 
 Foreign housekeeping support workers are currently only permitted to enter and remain in the country if they are employed by fore ign nationals such as diplomats and highly 
skilled professionals. However, the Governme nt will conduct deliberations focused on 
enabling foreign housekeeping support workers employed by a company providing housekeeping support services to enter and re main in the country even in cases in which 
the purpose is to provide housekeeping suppor t to Japanese nationals. Such initiatives 
would be undertaken in National Strategic Special Zones on a trial basis, within the 
framework of a system managed by local auth orities, with a view to promoting active 
social participation by women, meeting their need for assistance with housework, and 
encouraging medium- to long-term economic gr owth. To this end, the Government will 
implement the requisite measures without delay.  WT/TPR/M/310/Add.1 
 
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 (In the field of nursing care) 
 To enable international students studying in Japan to continue to play an active role 
within the country after graduating from a Japanese higher education institution and 
obtaining a specific national qualification such  as the certified care worker qualification, 
the Government will promptly take legislative measures for the establishment of a new 
status of residence. 
 
Preguntas 
 ¿Cómo se compatibiliza la intención de no remunerar las horas extraordinarias de los trabajadores 
con una estrategia cuyo objetivo principal es revitalizar la economía? 
 Question 
 2. What is the intention not to compensate overtime workers made compatible with a strategy 
whose main objective is to revitalize the economy? 
 
RESPONSE  Founding new working system for high level professionals to evaluate not based on 
working hours but on performance will impr ove motivation and ability of high level 
professionals, thereby will promote economic growth. 
 
2. Párrafo 3.44 
 En este párrafo el informe indica que los fabricantes extranjeros de productos eléctricos y de 
consumo pueden someterse a la evaluación de 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 productos de consumo). Además, de conformidad con lo dispuesto en la Ley de control de gases a 
alta presión, determinados cilindros y equipos de signados de gas a alta presión elaborados por 
fabricantes extranjeros pueden eludir algunas inspecciones si los fabricantes están inscritos en un registro del gobierno. 
 
2. Paragraph 3.44  
In this paragraph, the report indicates that foreign manufacturers of electrical products and 
consumer can undergo conformity assessment and certification bodies accredited conformity assessment abroad, in accordance with relevant la ws (e.g., the safety Law electrical Appliance and 
Material safety Law and the consumer products). Furthermore, in accordance with the provisions 
of the Act of gases at high pressure, certain designated gas cylinders and high pressure produced 
by foreign manufacturers can circumvent some inspections if manufacturers are enrolled in a government record equipment. 
 
Pregunta 
 
¿Podría detallar en una lista que tipos de cilindros y equipos designados de gas a alta presión 
pueden eludir algunas inspecciones?  Question 
 3. Could you detail a list of designated types of gas cylinders and high pressure equipment may circumvent some inspections? 
 
RESPONSE  
Those are containers and their components in Safety Regulation for Container that METI 
recognizes as registered.  WT/TPR/M/310/Add.1 
 
- 159 - 
 
Pregunta 
 
¿En qué registro los fabricantes deben in scribirse para obtener este beneficio? 
 
Question 
 
4. What record manufacturers must register to obtain this benefit? 
 
RESPONSE  Any manufacture who intends to register fo r Foreign Manufacture of Containers and 
their components shall have review and inspection by either METI or the related 
organization, and then shall submit a writte n application letter describing the following 
items to the Minister of Economy, Trade and Industry. 
 
‐ Personal name or business name, address and,  in the case of a judicial person, the 
personal name of its representative 
‐ Business Section (Appendix table section of Safety Regulation for Container) 
regarding the Containers and their components 
‐ Name, specification and quantity of th e manufacturing equipment for container 
and their components 
‐ Name, specification and quantity of insp ection equipment for container and their 
components  
‐ The Quality management method and insp ection organization for container and 
their components, etc. 
 Párrafo 3.51 
 
En este párrafo el informe explica que, según las autoridades, las MSF aplicadas por Japón se basan en las normas internacionales pertinentes. Cuando no existen dichas normas, se basan en evaluaciones científicas del riesgo, de conformidad con el Acuerdo MSF de la OMC. Además, las 
autoridades afirman que, por lo que se refiere a las cuestiones relacionadas con la inocuidad de los 
alimentos, la Comisión de Inocuidad de los Alimentos del Japón publica los resultados de las evaluaciones del riesgo. 
 
Paragraph 3.51  
In this paragraph, the report explains that, a ccording to the authorities, MSF implemented by 
Japan are based on relevant international standard s. When there are no such rules are based on 
scientific risk assessments in accordance with the SPS Agreement of the WTO. The authorities 
state that, in regard to issues related to food safety, the Commission on Food Safety of Japan 
publishes the results of the risk assessments. 
 Pregunta 
 ¿En que se basan las evaluaciones científicas del riesgo?  
Question 
  
5. Is this based on what scientific risk assessment?  
RESPONSE 
 Regarding food safety issues, Food Safety Co mmission of Japan, FSCJ, conducts its risk 
assessment in response to a request from ri sk management organizations, based on the 
discussion of the relevant experts who be long to the FSCJ's Expert Committees which 
are established for individual hazards. The disc ussion is made on the basis of the latest 
scientific evidences. Meetings of the Expe rt Committees are basically open to public. 
FSCJ publishes a draft risk assessment report  on the website and accepts comments for 
30 days before FSCJ concludes the report and submits it to a relevant risk management organization. A final version of a risk  assessment report is available at: 
http://www.fsc.go.jp/hyouka/index.html WT/TPR/M/310/Add.1 
 
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 Pregunta 
 
¿Dónde se publican los resultados de las evaluaciones del riesgo?  
Question 
 
6. Where the results of the risk assessments are published? 
 
RESPONSE 
Food Safety Commission of Japan, FSCJ, publishes risk assessment reports on the 
website. The reports are available at: http://www.fsc.go.jp/hyouka/index.html  
 
3. Párrafo 3.52 
 En este párrafo el informe menciona que, en cuanto a las medidas relativas a la inocuidad de los 
alimentos, en Japón se aplican normas sobre residuos a más de 800 plaguicidas. 
 3. Paragraph 3.52 
 
In this paragraph, the report mentions that in regard to measures relating to food safety in Japan waste rules apply to more than 800 pesticides.  
Pregunta 
 
¿Cuáles son esas normas? 
  
Question 
 
7. What are these rules?  
 RESPONSE  
In 2006, Japan introduced the Positive List System for agricultural compounds including 
veterinary drugs and provis ionally set MRLs (maximum residue limits) for about 
800 compounds for individual food products . Under the new system, a uniform limit 
of 0.01 ppm is applied for the compound-food combinations for which specific MRLs are 
not set.   
Japan has newly established MRLs for some f ood products and reviewed the MRLs that 
had been provisionally set at the introducti on of the system. Basically, MRLs are set 
based on the assessment of toxicity studies by  the Food Safety Commission in Japan and 
residue studies carried out according to appl ication methods specified by the Japanese 
government or other countries. 
 For details of the Positive List System and specific MRLs, please go to: 
 
http://www.mhlw.go.jp/englis h/topics/foodsafety/positive list060228/introduction.ht
ml 
http://m5.ws001.squarestart.ne .jp/foundation/search.html  
 
4. Párrafo 3.53  
En este párrafo el informe explica que las autori dades afirman que el proceso para levantar la 
prohibición comporta consultas técnicas, el examen de las prescripciones en materia de importación y una evaluación del riesgo que tenga debidamente en cuenta el código de la 
Organización Mundial de Sanidad Animal (OIE), y requiere consultas con las ramas de producción 
nacional pertinentes, los consumidores y los países solicitantes.  WT/TPR/M/310/Add.1 
 
- 161 - 
 
4. Paragraph 3.53 
  In this paragraph, the report explains that the authorities claim that the process to lift the ban 
involves technical consultation, examination of the requirements for the import and a risk 
assessment that takes due account of the code of the World Organization for Animal Health (OIE), 
and requires consultation with relevant national production industries, consumers and the applicant countries. 
 
Pregunta 
 ¿Podría desarrollar de manera más específica como es el proceso para levantar la prohibición para 
exportar a Japón carne bovina y aves de corral? 
 Question 
 Q8. Could Japan develop more specific process to lift the ban export beef and poultry to Japan?  
RESPONSE 
 The Animal Health Authority of Japan conducts  risk assessment for the issues such as 
freedom from important animal diseases, for example, FMD and avian flu, in accordance 
with the "Standard Procedure for Approval for Import of Designated Items into Japan to 
be Quarantined" ( http://www.maff.go.jp/j/sy ouan/douei/eisei/sop/ ). 
 
5. Párrafo 3.54 
 En este párrafo el informe explica que Japón no ha acreditado a ningún laboratorio extranjero en 
las esferas de la sanidad animal y la preservación de los vegetales. 
 5. Paragraph 3.54  
In this paragraph, the report explains that Japan has not accredited any foreign laboratory in the 
areas of animal health and plant health.  
Pregunta 
 
¿Cuál es el motivo por el cual ningún laboratorio extranjero no ha sido acreditado?  
 
Question 
 Q9. What is the reason that no foreign laboratory is not accredited? 
 
RESPONSE  
In the area of animal health and plant heal th, it is not required for laboratory in 
exporting countries to be accredited by the Government of Japan.  
Regarding animal health, in order to protec t from entry of diseases, Japan requests 
exporting countries to attach a sanitary certificate issued by the veterinary authority of exporting countries, and conducts import  inspection based on animal health 
requirements established bilaterally. 
 
Regarding plant health, in order to protect fr om entry of pests, Japan requests exporting 
countries to attach a phytosanitary certificat e issued by the Nation al Plant Protection 
Organization of exporting countries, and conduc ts import inspection based on the IPPC.   
 6. Párrafo 3.58 
 
En este párrafo el informe dice que actualmente, la lista de productos modificados genéticamente que deben ser etiquetados comprende ocho cultivos (habas de soja, maíz, semillas de colza, patatas, semillas de algodón, alfalfa, papaya y remolacha azucarera) y 33 clases de productos 
alimenticios elaborados (principalmente productos elaborados a base de habas de soja o maíz), así WT/TPR/M/310/Add.1 
 
- 162 - 
 
  
 
 como productos recientemente añadidos como la papaya y los productos alimenticios elaborados 
que contengan papaya como ingrediente principal.  6. Paragraph 3.58 
  
In this paragraph, the report says that currently, the list of genetically modified products should be labeled comprises eight crops (soybeans, corn, rapeseed, potatoes, cotton seeds, alfalfa, papaya 
and sugar beet) and 33 classes processed food products (mainly products made from soybeans or 
corn), and recently added products such as papaya and processed food products containing papaya as the main ingredient.  
Pregunta 
 
¿Podría brindar la lista completa de los productos alimenticios elaborados que deben ser 
etiquetados? 
 Question 
 Q10. Can Japan provide the complete list of processed food products to be labeled?  RESPONSE 
 
Thirty three kinds of "designated processed food" that need to be labelled under the 
Food Sanitation Act are listed on the following table: 
 
Farm Products Processed Food 
Soybeans (including immature 
soybeans and bean sprout) 1. Tofu (soybean curd) and Aburaage (fried soybean curd) 
 2. Kooridofu (frozen soybean curd),  Okara (dried Tofu refuse) and 
Yuba (dried soybean milk membrane) 
 3. Natto (fermented soybeans) 
 4. Soybean milk 
 5. Miso (fermented soybean paste) 
 6. Soybean Nimame (cooked soybeans) 
 7. Canned soybeans and bottled soybeans 
 8. Kinako (roasted soybean flour) 
 9. Roasted soybeans 
 10. Food made mainly from ingredie nts listed in item 1 to item 9 
 11. Food made mainly from soybean for cooking 
 12. Food made mainly from soybean flour 
 13. Food made mainly from soybean protein 
 14. Food made mainly from immature soybean 
 15. Food made mainly from soybean sprouts 
Corn 1. Corn snack confectionery 
 2. Corn starch 
 3. Popcorn 
 4. Frozen corn 
 5. Canned corn and bottled corn 
 6. Food made mainly from corn flour 
 7. Food made mainly from corn grits (excluding corn flakes) 
 8. Food made mainly from corn for cooking 
 9. Food made mainly from ingredie nts listed in item 1 to item 5 
Potato 1. Potato snack confectionery 
 2. Dried potato 
 3. Frozen potato 
 4. Potato starch 
 5. Food made mainly from potato for cooking 
 6. Food made mainly from ingredie nts listed in item 1 to item 4 
Rapeseed  
Cottonseed  
Alfalfa Food made mainly from alfalfa 
Sugar beet Food made mainly from sugar beet for cooking 
Papaya Food made mainly from papaya 
 WT/TPR/M/310/Add.1 
 
- 163 - 
 
7. Párrafo 3.59 
 En este párrafo el informe explica que dura nte el período examinado, entre los cambios 
introducidos en el sistema de etiquetado de los productos alimenticios establecido en virtud de la 
Ley sobre condiciones sanitarias de los alimentos figuró la inclusión de una norma sobre 
etiquetado de productos alimenticios para lactantes.  
7. Paragraph 3.59 
 In this paragraph, the report explains that during the period under review, including changes in the system of labeling of foodstuffs established pu rsuant to the Act on sanitary conditions of food 
figured the inclusion of a rule on la beling of foodstuffs for infants. 
 Pregunta 
 ¿Cuáles fueron los motivos de la inclusión de la norma sobre etiquetado para productos alimenticios lactantes? 
 
Question 
 Q11. What were the reasons for the inclusion of the standard on infant food labeling? 
 
RESPONSE  
The standards for radioactive cesium in food  established by the Ministry of Health, 
Labour and Welfare set the stricter standard s for infant foods than those for foods in 
general. 
  
Depending on the food product, consumers ma y have difficulty in distinguishing which 
standards (infant foods or general foods)  are applied by appe arance. Therefore, 
Consumer Affairs Agency established labe lling standards for infant foods, so that 
consumers can identify the infant food meet ing the stricter standards for radioactive 
cesium in food, before purchasing it.  
Standard limits of radiation cesium in foods: 
Foods in general: 100 Bq/kg Infants Foods: 50 Bq/kg 
 
8. Párrafo 3.75  En este párrafo el informe explica que, en el pe ríodo de dos años abarcado hasta abril de 2014, el 
número de operadores económicos autorizados aumentó de 54 a 523, pero no se dispone de datos 
sobre el valor o el tipo de mercancías exportadas por estos operadores.  
8. Paragraph 3.75 
  In this paragraph, the report explains that in the two-year period lasted until April 2014, the 
number of authorized economic operators increase d from 54 to 523, but no data is available on 
the value or type of goods exported by these operators .  Pregunta 
 ¿Podría explicar cuál es el motivo por el cual no se dispone de datos sobre el valor o el tipo de mercancías exportadas por estos operadores? 
 
Question 
 
Q12. Could Japan explain about the reason why ther e is no data on the value or type of goods 
exported by these operators? 
 WT/TPR/M/310/Add.1 
 
- 164 - 
 
  
 
 RESPONSE 
 The Government of Japan does not disclose  trade-related statistical information on 
individual economic operators, rega rdless of their "authorized" status. 
 
9. Párrafo 3.77  
En este párrafo el informe explica que en virtud de la Ley de Aduanas, se aplican prohibiciones de 
exportación a una gama limitada de productos: estupefacientes y otros fármacos determinados; pornografía infantil; artículos que infringen los derechos de propiedad intelectual; y determinados artículos que constituyan competencia desleal con arreglo a la Ley de prevención de la 
competencia desleal (fundamentalmente, relacion ada también con los derechos de propiedad 
intelectual).  
9. Paragraph 3.77 
 In this paragraph, the report explains that under  the Customs Act, export prohibitions apply to a 
limited range of products: drugs and certain other drugs; child pornography; items that infringe 
intellectual property rights; and certain items which constitute unfair competition under the Law on Prevention of Unfair Competition (basically, also related to intellectual property) with.  
Pregunta 
 
¿Podrían brindar la lista de productos cuya exportación se encuentra prohibida? 
 
Question 
 
Q13. Could Japan provide the list of goods whose export is banned? 
 RESPONSE  
For detailed information on the articles of which exportation is prohibited under the 
Customs Act, please refer to the link be low (English website of Japan Customs). 
 
Articles whose exportation is prohibited 
http://www.customs.go.jp/english/ c-answer_e/kinseihin/2501_e.htm  
 
Pregunta 
 
¿Cuáles son los criterios que utiliza Japón para determinar cuáles son los productos que estarán sujetos a licencias de exportación? 
 
Question 
 
Q14. What are the criteria used by Japan to determine which products are subject to export 
licensing?  
RESPONSE 
 The Customs Act stipulates export prohibition of certain goods, exportation of which is 
originally prohibited under other domestic laws, including the Unfair Competition 
Prevention Act and laws on intellectual proper ty rights, with a view to having the goods 
strictly controlled by the Cu stoms at the border. The goods under the said export 
prohibition under the Customs Act are determ ined based on social conditions and other 
factors. 
 10. Párrafos 3.128 a 3.132 (propiedad intelectual) 
 
En estos párrafos se describe en general el régimen de propiedad intelectual de Japón  WT/TPR/M/310/Add.1 
 
- 165 - 
 
10. Paragraphs 3128-3132 (intellectual property) 
 In these paragraphs describe in general the intellectual property regime Japan  
Pregunta 
 
¿Qué cambios específicos introdujo el Programa Estratégico sobre Propiedad Intelectual de 2013 
sobre el régimen vigente? 
 Question 
 
Q15. What specific changes introduced to the Intellectual Property Strategic Program 2013 on the 
regime? 
 
RESPONSE 
Japan implemented a sequence of necessa ry measures, including improving and 
enhancing the infrastructure of examinations  at the Japan Patent Office, strengthening 
the protection of trade secrets, enhancin g intellectual property dispute settlement 
functions, enhancing a strategic approach  to international standardization and 
certification, and enhancing the functions of  collaboration between industry, academia 
and government, and Japan promoted the de velopment of an environment in which 
innovative activities ca n be easily conducted. WT/TPR/M/310/Add.1 
 
- 166 - 
 
  
 
 15. TURKEY  
Report by the Secretariat – WT/TPR/S/310 
 
1.2.2 Foreign direct investment, pp.  16 and 17, para. 1.17. and 1.18 
 
It is mentioned in the report that "1.17. Until recently, the governme nt did not consider attracting 
FDI a high priority, while the local business communi ty in general considered investment by large 
foreign companies as a threat. Consequently, Japan' s inward FDI is far below that of other major 
developed economies. The continued low level of FDI may also be attributed to factors such as the 
relatively high cost of doing business in Japan; strict and complicated domestic sector regulations; limited availability of risk capital; regulatory barr iers; the difficulty involved in hiring qualified 
employees; and impediments to mergers and acquisitions. 
 1.18.  Japan aims to double the outstanding amo unt of FDI by foreign companies to ¥35 trillion by 
2020. To achieve this, tax incentives to stimulat e investment and private-demand-led growth are 
also being discussed. A cut in corporate tax (currently 30%) is considered as the initial major step (section 3.3.1.5)." 
 
Could Japanese delegation kindly give further information as to whether there is an intention for a structural change which can further improve investment environment, in addition to fiscal and financial incentives for foreign investors? 
 
RESPONSE  
Japan is conducting activities focused on the necessary institutional reforms with the 
Council for Promotion of Foreign Direct Investment in Japan as the control tower. For the prompt improvement of environment for inward FDI, the Council for Promotion of 
Foreign Direct Investment in Japan is exam ining the priority tasks, which include but 
not limited to, strengthening multi-language  services, cultivating personnel with a 
global outlook.  
1.3 Outlook, p.18, para. 1.25 
 It is mentioned in the report that "As part of the third arrow of structural reforms and in light of 
demographic challenges, on 24 June 2014 the government released its "Revised Japan 
Revitalization Strategy" aimed at becoming a world-class business centre by attracting global companies. The strategy includes increasing the use of foreign workers and enhancing workforce 
participation of women, youth and the elderly."   
 How does Japan consider to change the immigration laws to combat a shrinking native workforce? More specifically, is Japan ready to encourage and welcome foreign people at the lower end to take 
on service-sector jobs since a lot of Japan's higher-end industries are automated? 
 RESPONSE 
 
Concerning the acceptance of foreign work ers, whereas Japan is supposed to promote 
actively the acceptance of foreign national s in professional and technical fields to 
vitalize the Japanese economy and enhanc e the competitiveness of the Japanese 
economy, there is not a general and perman ent scheme to receive foreign nationals 
working in unskilled labour markets.   
Regarding how to address the decrease of work force, it is important to start with 
working on the improvement of birth rate, and then to work on the improvement of 
productivity and on the measures for the utilization of the potential work force of the 
youth, women and the elderly. Japan should be careful about taking a policy to improve 
the situation of the decrease of work forc e by accepting a lot of foreign nationals 
working in unskilled labour markets. 
 
Therefore, the government thinks it necessary  to deliberate carefully, with the national 
consensus, about the acceptance of such  unskilled foreign workers considering the WT/TPR/M/310/Add.1 
 
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effect which would influence the life of Japa nese nationals such as our labour market, 
the improvement of our labour producti vity, our public security and so on. 
 2.2.3 Trade and Investment Regime – Trade Policy Objectives – Other Agreements and 
Arrangements, p. 22, para 2.13 – 2.14 
 It is mentioned in the Secretariat Report that " Under the GSP scheme, preferential tariff rates 
apply to 409 tariff lines out of 2,320 (at the 9-digit level) in Chapters 1 to 24 (agriculture and 
fisheries) and 3,153 out of 7,029 in Chapters 25 to  97. The preferential margin varies from one 
product to another and the main exclusions are rice and rice products, meat and meat products, fish, dairy products, pineapples, cereal produc ts, textiles and clothing, leather and leather 
products, and footwear. " 
 Furthermore, it is expressed that " Japan provides preferential access under the Generalized 
System of Preferences to 144 countries or territori es. Since the last review of Japan, Samoa was 
taken off the list in April 2014 because it was no longer classified as a least-developed country, and Croatia graduated from the list because it had been classified as a high-income economy in 
the previous three years' World Bank statistics. " 
 Taking into account Turkey's strength in the exports of agricultural products, could Japan kindly specify whether any easing/reduction in the content of the products which are excluded from GSP 
scheme is envisaged? In addition, Turkey would like to ask Japan whether any revision in her list 
of GSP beneficiaries, is envisaged in  the context of this year's review? 
 
RESPONSE 
 In this year's review, there will be no chan ge in the overall coverage of the products 
under GSP scheme, and in the list of GSP beneficiaries. 
 2.3.2 Regional and preferential agreements, pp. 21, para. 2.9. 
 
It is mentioned in the report that "2.9. Current policy for negotiating Economic Partnership 
Agreements (EPAs) is based on the Japan Revitalization Strategy, decided by Cabinet in 2013 and, before that, the Basic Policy on Comprehensive Economic Partnerships of 2010. Under the 
Strategy, "the government will raise FTA ratio from current 19% to 70% by 2018, by promoting 
economic partnership as a basis of global economic activities". …  
2.10. As of November 2014, the network of 13 regi onal trade agreements or EPAs in force is the 
same as that reported in the last Trade Policy Review. Under these agreements, Japan has tended to exclude a variety of agricultural and related pr oducts – particularly certain tariff lines for meat 
and meat products, fish and fish products, dairy products, rice, products of the milling industry, 
plywood, leather and products thereof, and footwear." 
 Could Japanese Delegation kindly provide information on possible strategies and/or tools 
considered to achieve 70% FTA ratio as of 2018? For example, is there a readiness to consider 
certain flexibilities in terms of opening up Japanese agricultural market?   
RESPONSE 
 Under the Japan Revitalization Strategy, Ja pan continues to work simultaneously, 
strategically and swiftly on the existing 8 EPA/FTAs negotiations including the Trans-
Pacific Partnership (TPP), the Regional Co mprehensive Economic Partnership (RCEP) 
and the Japan-China-Republic of Korea FTA. Japan hopes for the dynamism of 
stimulating and revitalizing each economic partnership. 
 
2.4 Investment Regime, p. 23, para. 2.20  
It is mentioned in the report that "The Act on National Strategic Special Zones of 2013 allows for 
the designation of zones where regulatory reform is expected to lead to increased investment. 
According to the authorities, precise details for ea ch zone are to be decided by consensus between 
the national government, local authorities, and the private sector." 
 WT/TPR/M/310/Add.1 
 
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 Could Japan kindly discuss how Japan plans to ensure this Act to be fertile this time around since 
special zones for structural reform were tried under the Koizumi government in 2001–2006 when 1,000 special zone proposals have been appr oved but eventually fell into disuse? 
 
RESPONSE 
 As the breakthrough for bold regulatory refo rms, new initiative of the following schemes 
have been taken in National Strategic Specia l Zones (NSSZ); i) establishing the Council 
on the NSSZ which is chaired by the Prime Minister, and ii) establishing Zone Councils 
which consist of Minister of State for the NSSZ, governor(s) and/or mayor and business 
operators. 
 
The Special Zones for Structural Reform (S ZSR) are still in effect. In the light of 
collaboration with SZSR, exceptional measures  on the regulations in the SZSR would be 
applied automatically in the framework of NSSZ. 
 2.4 Investment Regime, p. 23, para. 2.23. and 2.24 
 
It is mentioned in the report "2.23. The Council for Promotion of Foreign Direct Investment was 
established by the government in April 2014 fo llowing a recommendation by the Expert Group 
Meeting on Foreign Direct Investment in Japan. The Expert Group noted the low level of FDI in 
Japan and identified several contributory factors: 
…;  relatively high energy and distribution costs, the costs of meeting Japan's quality and safety 
standards and, particularly for agricultural raw materials, high costs of inputs; … 
 
2.24. The Expert Group made a number of recommendations including reducing the tax and 
administrative costs, improving human resources, harmonization and simplification of licensing and 
approval systems, and promotion of EPAs, tax agreements, and other bilateral investment-related treaties."  
Could the Delegation provide information whether there are any relaxation on quality and safety 
standards as well as the strategy to improve labour market?  
RESPONSE 
 Japan is not considering policies that relax quality and safety standards in order to 
promote inward FDI in Japan. 
  Regarding the strategy to improve the la bour market, Japan is working to loosen 
regulations governing work-tim e and employment placement. 
 
3.1.1 Customs procedures and requirements, p. 26, para. 3.2  
It is mentioned in the report that "Japanese authorities introduced Authorized Economic Operator 
(AEO) programme in March 2006 that simplify customs procedures and facilitate legitimate trade."  
Could Japanese Delegation provide us with the overall results of the AEO programme, especially in 
terms of trade flows, since its start in 2006?  RESPONSE 
 
Further trade facilitation has been achieved as  a result of the implementation of the AEO 
programme, which is exemplified by reduced lead-time as described in para. 3.3 of the 
Secretariat Report. 
 3.1.1 Customs procedures and requirements p. 26 para. 3.4. 
 
It is mentioned in the report "Japan has mutual recognition arrangements (MRAs) on AEO 
programmes with Canada, the European Union, th e Republic of Korea, Malaysia, New Zealand, 
Singapore, and the United States. Under these MRAs, Japan Customs takes into account the status WT/TPR/M/310/Add.1 
 
- 169 - 
 
of the members of the other AEO programme when conducting its own risk assessment. Japan is 
in consultation with Switzerland on the possibility of having MRAs on AEOs."  Does Japanese Government have intention to enlarge the country coverage of AEO programme? If 
so, what would be considered as a basis for priority? 
 RESPONSE 
 
Japan has an intention to enlarge the count ry coverage of MRA on AEO programmes. 
Before launching an MRA consultation, Japan takes into account various elements, such 
as economic relations with potential part ners, and whether a full-fledged operational 
AEO programme is in place for certain duration, in a comprehensive manner. 
 3.1.4.1 Trade Policies and Practices by Measur e – Measures Directly Affecting Imports - 
MFN Applied Tariff, pg. 30, para. 3.17 
 It is highlighted in the Secretariat Report that " Import duties on agricultural products are higher 
than duties on non-agricultural products: the simple average for agriculture (WTO definition) is 
14.9% (17.5% in FY2012), compared with 3.7% for non-agricultural products (same as in FY2012). " 
 
Considering the simple average of import duties fo r agricultural products has been fluctuating as 
15.7%, 17.5% and 14.9% on FY 2010, 2012 and 2014 respectively, and there is a noteworthy difference on average of import duties between agricultural and non-agricultural products, could 
Japan kindly explain whether a scheduled liberalization on agricultural products is set as a target 
for a medium and/or long term?  
RESPONSE 
 Whether Japan will further reduce tariffs for agricultural products depends on various 
factors, such as DDA negotiations. 
 
3.1.7 Standards and other technical requirements, p. 35, para. 3.40 
 
It is mentioned in the report that "The authorities indicate that when international standards do 
not meet requirements in Japan, domestic standards or technical regulations are needed."  
Who is the relevant authority to decide these technical regulations? How do they assure that 
domestic standards are not used as a technical barrier to trade?   RESPONSE 
 
The following ministries/agency are mainly in  charge of adopting technical regulations 
and standards concerning TBT issues: Ministry  of Economy, Trade and Industry (METI), 
Ministry of Internal Affairs and Communication  (MIC), Ministry of Agriculture, Forestry 
and Fisheries (MAFF), Ministry of Health, Labour and Welfar e (MHLW), Ministry of Land, 
Infrastructure and Transport (MLIT), Ministry of the Environment (MOE) and Consumer 
Affairs Agency (CAA). 
 For the preparation, adoption and applicatio n of technical regulations and standards, 
Japan complies with codes of WTO/TBT agreement and its ANNEX 3. 
 
For example, Japan takes measures as follows to ensure that these regulations and standards are not used as a technical barrier to trade.  
 
(a) Where international standards exist or their completion is imminent, Japan uses 
them, or the relevant parts of them, as basi s for technical regulations and standards it 
develops. 
 
(b) Before adopting a regulation or standard , Japan usually allows a period of at least 
60 days for the submission of comments on th e draft technical regulation and standard 
by interested parties within the te rritory of a member of the WTO. WT/TPR/M/310/Add.1 
 
- 170 - 
 
  
 
 In the case of JIS and JAS, in addition to  the above measures, Japan publishes a work 
program at least once every six months, co ntaining the standards it is currently 
preparing and standards which it ha s adopted in the preceding period. 
 
3.1.10 Government procurement, p. 42, para. 3.65 
 It is mentioned in the report that "In addition to its commitments under the GPA, Japan has 
chapters on government procurement in nine of its EPAs"   
 As a result, what is the coverage of these chapters in the mentioned agreements? Is the degree of liberalization in government procurement enough to have a real impact on trade? 
 
RESPONSE  
With respect to Japan's EPAs with Singapore, Mexico, Chile, Switzerland, Peru and 
Australia, the coverage of the government pr ocurement chapter varies. The main points 
of the agreements are found in the Report s made by the Secretariat for the Committee 
on Regional Trade Agreements (WT/REG140/4, WT/REG198/4, WT/REG234/1, 
WT/REG273/1/Rev.1 and WT/REG309/1/Rev.1. Fo r the EPA with Australia, the report 
has not been available yet.)   
Other EPAs have no specific provisions regarding the coverage, while focusing on 
cooperation, such as the exchange of info rmation and establishment of a sub-committee 
on government procurement. On the one hand, some agreements have articles 
regarding the principles such as national treatment, most-favoured-nation treatment 
and transparency. For more detailed informat ion, please refer to the text of the 
agreements available at http://www.mofa.go.jp/polic y/economy/fta/index.html  
 
3.2.4 Export support and pr omotion p. 46 para. 3.89. 
 It is mentioned in the report "Most of JBIC's lending activities are for overseas investment loans – 
which represented about three-quarters of the to tal operations of ¥2,206.1 billion in FY2013. 
These investments include projects that will deliv er raw materials to Japan, projects involving 
Japanese companies, as well as projects abroad us ing exports from Japan. JBIC also continues to 
provide direct loans for exports (Table 3.9)." 
 Could Japanese Government provide further information on the eligibility criteria for "overseas 
investment loans"? Are there any criteria ot her than the ones mentioned in the report? 
 RESPONSE  
Overseas investment loans are for Japanese  firms undertaking overseas projects and 
natural resource development.  
Eligibility is determined by the extent to which Japanese companies are involved, such 
as the share of equity in proposed project. However, investment share is just one of the 
components as we consider each proposal on a case-by-case basis. 
 
3.3.1.4 Consumption tax, p. 50, para. 3.104  It is mentioned in the report that "Consumption tax is charged on the value added principal for 
asset transfers (defined as sale or lease of assets or services), that is, tax paid on purchases is 
deducted from tax received for sales and the balance paid to the State. In April 2014, the tax was increased from 5% to 8% and the government intends to increase it again to 10% in April 2017." 
 
How confident is Japan that the planned increase on the consumption tax in 2017, would not lead economy back into recession? 
 
RESPONSE  The Government of Japan decided that the Ap ril 2017 consumption tax hike from 8% to 
10% will be implemented certainly without any provisos for decisions based on the WT/TPR/M/310/Add.1 
 
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economic climate, because it is necessary to take responsibility to pass down a social 
security system to the next generation an d to secure trust of the market and the 
international community.  
Given the Government's resolve to realize an economy that allows for the raising the 
consumption tax rate, the Government of Ja pan will exercise all possible measures to 
effectively manage the economy.  
 
3.3.2 Subsidies and support p. 53, para.3.112  It is mentioned in the report that "In March 2014, it was reported that METI would start providing 
subsidies for energy storage systems (lithium-ion batteries). The subsidies would be available for 
households (up to ¥1 million) and commercial enterprises (up to ¥100 million) with a total budget of ¥10 billion. Another report also stated that the government intended to introduce a subsidy for 
vehicles powered by fuel cells at ¥2 million per ve hicle with further support in some prefectures for 
local purchases."  
Particularly taking this kind of subsidies into account, does Japan undertake commitments such as 
performance requirement prohibitions in relation to subsidies?   RESPONSE 
 
Both energy storage systems produced by Japanese manufacturers and those produced 
by foreign manufacturers, including those produc ed in foreign countries, are eligible for 
the "subsidies for energy storage systems (lithium-ion batteries)". Therefore, the 
subsidy conforms to the WTO agreements, in particular the provision regarding National 
Treatment. 
 
Both vehicles produced by Japanese car ma nufacturers and those produced by foreign 
car manufactures, including those produced in foreign countries, are eligible for the 
"subsidies for vehicles." Therefore, the subsidy conforms to the WTO agreements, in 
particular the provision regarding National Treatment. 
 4.1 Agriculture, p. 68, para. 4.4 
 
It is mentioned in the report that "Several factors account for the small fragmented structure of 
farms and the relatively low degree of consolid ation. The land reforms of the 1940s and the 
irrigation patterns and labour-intensive nature of rice farming meant that farms were quite 
productive during that period. However, mechanisation has greatly reduced labour requirements 
allowing part-time farming while many farmers are reluctant to rent or sell land for farming for social and cultural reasons as well as the opportunity to make large capital gains should the land 
be rezoned for construction. A high degree of government support and protection for farming has 
also meant that small-scale farming remains prof itable, particularly when supplemented by non-
farm incomes. However, the result has been a stea dily aging farming population and an inefficient 
agricultural sector." 
 It is known that, in addition to traditional Japanese farmers, only agricultural production 
corporations* could own farmland in Japan. Would Japan kindly comment on what to expect from 
changes in the structure of farms within th e framework of the Farmland Intermediary 
Administration Organization (FIAO), which acts as a middle-man between renters and landowners to support farmland leasing, to encourage non-agricultural entities' involvement in agricultural 
production through partnerships? Also, could Japan shortly discuss how the Act on National 
Strategic Special Zones would contribute to strengthening agricultural competitiveness through consolidation of the farmland? 
 
*More than 50% of the business sales should come from agricultural activities  
RESPONSE 
 The 2009 revision of the Agricultural Land Law deregulated by allowing firms to take a 
lease on farmland. The entry of firms into agriculture sector is in progress at the 
quintuple pace after the revision in 2009. To be precise, 1,576 firms newly entered in WT/TPR/M/310/Add.1 
 
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 succeeding five years. We consid er that firms will play a lead ing role in the agricultural 
community agriculture and will further promot e the entry of firms to the agricultural 
sector through the regional government supp orted institutions, which were established 
to accelerate farm consolidation in 2014. Th e Act on National Strategic Special Zones 
strengthens agricultural competitiveness th rough the programs which deregulate the 
requirements of corporation firms for the ownership of farmlands.  
4.1.2.1 Legal and institutional framework, p. 71, para. 4.14 
 It is mentioned in the report  "There are many laws affecting farming generally and specific types 
of farming. Some of the principal laws include: 
... 
• The Agricultural Co-operatives Act of 1947, last amended in 2004, which provides 
exemptions from competition laws for agricultural co-operatives and sets out the 
services they may provide to their members. These services include supplying farm 
inputs, purchasing outputs, insurance, welfare, lending and savings, educational facilities, and a range of other activities; ..." 
 
Could Japanese Government kindly give information if there is any support mechanism to compensate consumers that might be hurt by unfair competition?  
RESPONSE 
 Neither the Agricultural Co-operatives Acts nor the competition laws does not stipulate 
any specific measures to deal with th e compensation issues of consumers. 
 4.1.2.2 Trade Policies in Selected Sectors – Agriculture – Trade – Trade Policies, p. 73, 
para. 4.19 
 It is underlined in the Secretariat Report that " In its most recent notification on imports under 
tariff quotas (for FY2012) to the WTO Committee on Agriculture, Japan has 18 tariff quotas 
covering 196 tariff lines at the 9 digit level. Fill rates for each quota have been fairly consistent 
over the past few years but vary considerably fr om one quota to another. For example, the fill 
rates for "Other dairy products for general use", "barley and its processed products", "wheat … and 
its processed products", "evaporated milk" and some others were over 90% for each year from 
FY2007 to FY2012 but fill rates for other quotas, such as "skimmed milk", "prepared whey (for infant formula)", "butter and butter oil", an d some others were consistently below 40%. " 
 
On the basis of the fact that, quota fill rates for some of the scheduled tariff quotas are relatively low; could Japan kindly elaborate on the rationale of her tariff quota implementation as well as reasons for quota under fill? 
  
RESPONSE  
Japan operates TRQs in consistent with the WTO Agreement and conducts it in a fair and 
transparent manner. The underfill of TRQs fo r some products is mainly related to the 
decline of their domestic consumptions related to these TRQs. 
 
4.1.2.2 Trade policies, p. 74, para. 4.22  It is mentioned in the report  "Japan did not reserve the right to use export subsidies and has 
notified the WTO Committee on Agriculture that it has not used any. Export credits, guarantees, 
and insurance from NEXI are available for agricultural products in the same way as exports of other goods. "  
 
Could Japanese Delegation kindly give informatio n on corresponding percentage of export credit, 
guarantees and insurance given to agricultural production by NEXI?  
 
RESPONSE  The percentage of agricultural exports with  NEXI-provided insurance in NEXI's total 
underwritten amount: FY 2013—0.1%. WT/TPR/M/310/Add.1 
 
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NEXI's total underwritten amount: JPY 8,517,171 million 
Total Japanese agricultural exports with NEXI-provided financial support: 
JPY 9,121 million.  
(NEXI provides insurance only. See 3.2.4 for detail.) 
 Report by the Government – WT/TPR/G/310 
 2.1 Trade and Investment Policy – Overview, p.4, para. 2.3  It is stated in the Government Report that " Japan is currently a party to thirteen 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 19%. 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 achieve higher trade 
liberalization at the multilateral level. " 
 
Considering Japan's highly protected agricultur al sector and ambitious goals set for the FTA 
coverage ratio, Turkey would like to ask whether FTAs with only Trade in Goods Chapters are ever 
projected, rather than new genera tion FTA's, targeting opening of sectors such as Services and 
Investment? 
 
RESPONSE  
Japan has no EPA/FTAs with only Trade in Goods Chapters. Japan is promoting 
comprehensive and high-level economic part nership covering various fields such as 
Services, Investment, Intellectual Property and Competition etc. 
 
2.2.2 Trade and Investment Policy – WTO – Dispute Settlement, p. 5, para. 2.10 
 It is emphasized in the Government Report that " …Japan continues to seek improvements and 
clarifications of the Dispute Settlement Unders tanding (DSU) which will serve Members' shared 
interests by enhancing compliance with trade rules and ensuring the integrity and credibility of the rule-based trade system. Japan attaches importance to the DSU revision negotiations and has 
actively contributed to the negotiations with a view to achieving a successful outcome. " 
 Considering Dispute Settlement Mechanism's importance in terms of providing a multilateral 
platform to resolve the trade conflicts among member states, could Japan kindly explain her 
position on DSU revision negotiations and specifically, Japan's perspective, as regards to key components required to be revised in this Mechanism?  
RESPONSE 
 As Turkey should be fully aware, Japa n has been actively engaged in, and has 
contributed negotiating documents, jointly and collectively to the negotiations on 
improvements and clarifications of the Dispute Settlement Understanding.
3 
 
In the current phase of the negotiations  which effectively began in 2007, Japan, 
together with the European Communities, made textual contributions to the following issues
4: 
 
 "sequencing" issue between the complia nce determination procedures and the 
authorization of the suspension of  obligations, as documented in 
JOB(05)/71/Rev.1; and 
 
 procedures for the termination of a prev iously granted author ization to suspend 
obligations and for the review of the implementation measure's compliance (so-
                                               
3 See, e.g. documents WT/MIN(99)/8, WT/MIN(99)/8/Corr.1, WT/MIN(01)/W/6, TN/DS/W/22, 
TN/DS/W/32, JOB(02)/45, JOB(05)/47, JOB(05)/71. 
4 Japan also made a textual contribution regarding ce rtain procedures for third party's participation in 
consultations under DSU Article 4.  WT/TPR/M/310/Add.1 
 
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 called "post-retaliation"), as docu mented in JOB(05)/47/REV.1 and 
JOB(05)/47/Rev.1/Corr.1. 
These textual contributions are reflected in th e July 2008 text prepared by the Chair of 
the Special Session of the Dispute Settlemen t Body (JOB(08)/81), reproduced as the 
attachment to the Chair's Report of 21 Ap ril 2011 to the Trade Negotiations Committee 
(TN/DS/25). Japan continues to believe that clarifications on these two issues would 
serve to meaningful improvement of the current dispute settlement procedures.  
 
The Doha Ministerial Declaration, paragrap h 30, states that WTO Members "agree to 
negotiations on improvements and clarifications  of the Dispute Settlement 
Understanding". Under this clear mandate,  anything less than "improvements" or 
"clarification" cannot be accepted as a fina l outcome of the negotiations which must 
meet this very high standard. This would mean, at the minimum, any amendments or 
revisions to the current Dispute Settlement Understanding must be well balanced and 
workable as a mechanism and leav e little room for ambiguity.  
 Japan notes that issues other than "sequenc ing" and "post-retalision" are also on the 
negotiating table
5 and WTO Members put forward various proposals and suggestions on 
these issues. Bearing in mind the Doha mand ate as described above, Japan will continue 
to be actively engaged in the discussion s on those issues and contribute to the 
successful conclusion of these negotiations on improvements and clarifications of the 
Dispute Settlement Understanding.  
 2.4.3 Japan's Bilateral Activities outside of FTAs, p. 9, para. 2.21 
 
It is mentioned in the report that " In April 2013, Japan and the United States completed bilateral 
consultations regarding Japan's participation in the negotiation of the Trans-Pacific Partnership and 
decided to conduct negotiations on non-tariff measures (NTMs) and on motor vehicle trade in 
parallel to the TPP negotiations. The negotiation on NTMs includes the areas of Insurance, Transparency/Trade Facilitation, Investment, IPR, Standards, Government Procurement, 
Competition Policy, Express Delivery and SPS. Th e negotiation on motor vehicle trade includes 
Special Motor Vehicle Safeguard, Transparency, Standards, PHP Certification System, Green/New 
Technology Vehicles, Financial Incentives, Distribution, Third Country Cooperation and Other Issues. The parallel negotiations have been held four times since August 2013. Since the fourth 
round, both governments have continued consultations intermittently." 
 According to reports from the recent TPP trade ministerial meeting in Singapore, Japan is 
determined not to abolish tariffs in five agricultural sectors namely – "dairy", "sugar", "rice", 
"beef", "pork", "wheat and barley". It is known that Japan's reluctance to reduce tariff and non-
tariff barriers on these sectors has drifted negotiations to a deadlock. Could Japan provide further information on how the conflict will be resolved and how the negotiation agenda will be shaped 
accordingly? 
 RESPONSE 
 
The details of the TPP agreement is still under  negotiation. Since Japan as well as other 
TPP parties have politically difficult issues  in the TPP negotiations, we continue our 
efforts towards a comprehensive and high-sta ndard agreement, with due considerations 
to sensitivities of each member.  4.1 Abenomics, p. 14, para. 4.3 
 
It is mentioned in the report that  "Under the current economic situation, the consumption tax 
increase from 8% to 10% scheduled in October 2015 will be postponed until April 2017 for 
18 months in order to ensure that Abenomics succeeds in overcoming deflation and enhancing 
economic growth. Further, the Government will develop a new economic stimulus package to ensure the economic virtuous cycles get on the right track and the fruits of Abenomics spread 
                                               
5 These issues are: third party rights; panel composition; remand; mutual agreed solutions, strictly 
confidential information; transparency and amicus cu riae briefs; timeframes; developing country interests 
including special and differential treatment; flexibility and member control; and effective control. WT/TPR/M/310/Add.1 
 
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throughout local economies. Regarding the current fiscal situation of Japan, the general 
government's gross debt to GDP ratio exceeds 200% and it is at the worst level in the world. In 
order to ensure confidence in Japan's public finance, the government firmly maintains the fiscal consolidation target of a primary surplus by FY2020 and in order to achieve the target, the 
government will prepare a concrete fiscal  consolidation plan by next summer." 
 Japan's ambition to increase tax base to finance ageing population and budget deficit is a known 
fact. However the shift from direct taxes to indirect taxes is deemed to be a major source of 
inequality for future generations. Given these concerns, could Japan provide further information on whether there exists a more sustainable set of fiscal action plans to renovate tax system?  
RESPONSE 
 In the fiscal consolidation plan, the Governme nt of Japan will consider specific contents. 
The main three themes are below: 
 1. Overcoming deflation and revitalizing economy 
2. Expenditure reforms 
3. Revenue reforms  The Government of Japan is going to discuss the content of revenue reforms from now 
on. 
 4.1 Abenomics, p. 14, para. 4.3 
 
It is mentioned in the report that "… Regarding the current fiscal situation of Japan, the general 
government's gross debt to GDP ratio exceeds 200% and it is at the worst level in the world. In 
order to ensure confidence in Japan's public finance, the government firmly maintains the fiscal 
consolidation target of a primary surplus by FY2020 and in order to achieve the target, the 
government will prepare a concrete fiscal  consolidation plan by next summer." 
 
Could Japan kindly provide details about this fiscal consolidation plan whereas no economy can 
sustain such a total debt level without having a nominal growth rate that is significantly higher than the level of interest rates? 
 
RESPONSE  
The government of Japan aims  to achieve both economic revitalization and fiscal 
consolidation. In the light of this, the gove rnment will formulate a concrete plan by the 
summer of 2015 to achieve a primary surplus for both central and local governments by FY2020. 
 
4.4 Japan's Domestic Policy – Agricu ltural Reform, p. 17, para. 4.18 
 
It is specified in the Government Report that " … Increasing food demand: promoting "FBI" 
strategies ("Made FROM Japan" spreading use of  Japanese food ingredients globally beyond 
Japanese cuisine, "Made BY Japan" supporting the Japanese food industries for overseas 
marketing, and "Made IN Japan" promoting exports of Japanese food), … " 
 Could Japan kindly share the essential points rega rding the implementation of each of three "FBI" 
strategies? 
 
RESPONSE  
Japan formulated the export strategy in 2013 in order to expand export of agriculture, 
forestry and fisheries products and food wh ich are made in Japan ("I" strategy). In 
addition to this 'direct' export strategy, Japan also pursues 'indirect' export expansion 
by 1) increasing the popularity of dish es which are made from Japanese food 
ingredients among chefs around the world (" F" strategy) and 2) promoting Japanese-
style food culture and industries in overseas  markets which are made by Japanese food 
industry ("B" strategy).  WT/TPR/M/310/Add.1 
 
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 16. INDONESIA 
Report by the Secretariat – WT/TPR/S/310 
 
1 Economic Environment 
1.1 Recent economic developments 
Page 11, Para. 1.3  
"Regarding monetary policy, on 22 January 2013 the government and the Bank of Japan (BOJ) 
released a joint-statement, where BOJ set a 2% price-stability target to be achieved at the earliest possible time. On 4 April 2013, BOJ introduced "Quantitative and Qualitative Monetary Easing" which included increasing the monetary base by some ¥60-70 trillion per year mainly through the 
purchase of Japanese government bonds. As a result, BOJ has now become the single biggest 
holder of Japanese government bonds (JGBs) underscoring the scale of its monetary easing programme. On 31 October 2014, BOJ announced it will expand the monetary base each year by 
some ¥80 trillion (from ¥60-70 trillion) in a furthe r effort to achieve the 2% inflation target." 
 Question 
 1. Could Japan elaborate more on the "Quantitative and Qualitative Monetary Easing" program that was introduced in April 2013?  
 
RESPONSE 
 The Bank of Japan decided to introduce QQE in April 2013 and to expand it in 
October 2014. The details of these decisions are as follows (except from the information 
available at the Bank of Japan homepage).  
QQE was introduced in April 2013 to achieve th e price stability target of 2% increase on 
year-on-year in the CPI at the earliest, wi thin about two years. The details are as 
follows.  
With a view to pursuing quantitative moneta ry easing, the main operating target for 
money market operations was changed from the uncollateralized overnight call rate to 
the monetary base. Specifically, the guidelin e for money market operations was set as 
follows: The Bank of Japan would conduct money market operations so that the 
monetary base would increase at an annual pace of about 60-70 trillion yen. 
 
With a view to encouraging a further decline in  interest rates across the yield curve, the 
Bank purchases JGBs so that their amount ou tstanding increases at an annual pace of 
about 50 trillion yen. In addition, JGBs with all maturities including 40-year bonds are 
made eligible for purchase, and the averag e remaining maturity of the Bank's JGB 
purchases would be extended from slightly less than three years to  about seven years -- 
equivalent to the average maturity of the amount outstanding of JGBs issued. 
 
With a view to lowering risk premia of asse t prices, the Bank purchases ETFs and Japan 
real estate investment trusts (J-REITs ) so that their amounts outstanding would 
increase at an annual pace of 1 tri llion yen and 30 billion yen respectively. 
 
In October 2014, the Bank of Japan decide d to expand the QQE. The details are as 
follows.  
The Bank will conduct money market operations  so that the monetary base will increase 
at an annual pace of about 80 trillion yen (an addition of about 10-20 trillion yen 
compared with the past). 
 
The Bank will purchase JGBs so that their am ount outstanding will increase at an annual 
pace of about 80 trillion yen (an addition of about 30 trillion yen compared with the 
past). With a view to encouraging a decline in interest rates across the entire yield 
curve, the Bank will conduct purchases in a flexible manner in accordance with financial 
market conditions. The average remaining matu rity of the Bank's JGB purchases will be WT/TPR/M/310/Add.1 
 
- 177 - 
 
extended to about 7-10 years (an extensio n of about 3 years at maximum compared 
with the past).  The Bank will purchase exchange-traded funds (ETFs) and Japan real estate investment 
trusts (J-REITs) so that their amounts outsta nding will increase at an annual pace of 
about 3 trillion yen (tripled compared with  the past) and about 90 billion yen (tripled 
compared with the past), respectively. 
 
References available at th e Bank of Japan homepage: 
"Quantitative and Qualitative Mo netary Easing (QQE)" (April 2013) 
https://www.boj.or.jp/en/mopo/outline/qqe.htm  
"Expansion of the Quantitative and Qua litative Monetary Easing" (October 2014) 
https://www.boj.or.jp/en/announcem ents/release_2014/k141031a.pdf  
 
Question 
 
2. Has the program had a positive impact on international trade in Japan? If so, please 
elaborate on the positive impact of this program to international trade?  
 
RESPONSE 
 Looking back at Japan's economy during th e first half of fisc al 2014, exports were 
relatively weak as a whole due to the factor s such as continued weakness in exports to 
the ASEAN economies, the sluggish growth in exports to China caused by excess capacity in capital stock and adjustment in the real estate market, and the decline in 
exports to the United States resulting fr om the expansion of overseas production, 
mainly in automakers. While the expansion of  overseas production could contribute to 
restraining exports, it could have positive  effects on the economy through increasing 
dividends from subsidiary companies, thereby pushing up corporate profits. 
 
References: Outlook for Economic Ac tivity and Prices (October 2014) 
http://www.boj.or.jp/en/mopo/outlook/gor1410b.pdf  
 
1 Economic Environment 1.2 Trade performance and FDI 1.2.2 Foreign direct investment  
Page 16, Para. 1.17 
 "Until recently, the government did not consider attracting FDI a high priority, while the local 
business community in general considered investment by large foreign companies as a threat. 
Consequently, Japan's inward FDI is far below that of other major developed economies. The continued low level of FDI may also be attributed to factors such as the relatively high cost of 
doing business in Japan; strict and complicated domestic sector regulations; limited availability of 
risk capital; regulatory barriers; the difficulty involved in hiring qualified employees; and impediments to mergers and acquisitions."  
Question 
 
3. Indonesia asks whether Japan intends to remo ve its barriers to inward FDI? If so, how? 
 
RESPONSE  
Japan is conducting activities focused on carrying out the necessary institutional reforms with the 
Council for Promotion of Foreign Direct Investment in Japan as the control tower. For the prompt improvement of environment for inward FDI, the Council for Promotion of Foreign Direct 
Investment in Japan is considering to identify priority tasks, which include but not limited to, 
strengthening multi-language services, cultivating personnel with a global outlook. 
 Incidentally, regarding regulatory barriers, having  the basic concept of 'the freedom of foreign 
transactions' and 'the minimum necessary control or coordination', Japan implements inward FDI 
regulations from the view point of 'national security ', 'maintenance of public order' and 'protection WT/TPR/M/310/Add.1 
 
- 178 - 
 
  
 
 of public safety', etc., complying with international rules (the OECD Code of Liberalization of 
Capital Movements).  Specifically, under the Foreign Exchange and Foreign Trade Act, submission of prior notification is 
required for limited industrial sectors listed in the act. Japan handle hundreds of notifications per 
year, and over the past five years (since 2009), all notifications have passed the screening.  
1 Economic Environment 
1.3 Outlook Page 18, Table 1.25  
"As part of the third arrow of structural reforms and in light of demographic challenges, 
on 24 June 2014 the government released its "Revised Japan Revitalization Strategy" aimed at becoming a world-class business centre by attracting global companies. The strategy includes 
increasing the use of foreign workers and enhancing workforce participation of women, youth and 
the elderly. To improve corporate productivity, the government is considering allowing a "white-collar exemption" to labour rules that require companies to pay extra for overtime. The 
plan also includes a corporate governance code for listed companies, and a revision of the portfolio 
of the US$1.26 trillion Government Pension Investment Fund (GPIF) was completed on 31 October 2014."  
Question 
 
4. Could Japan give further details on its "Revised Japan Revitalization Strategy"? 
 
RESPONSE  
The government of Japan gives information on "Revised Japan Revitalization Strategy" 
on the website. Please refer to the following URL:    "Revision of Japan Revitalization Strategy - 10 Key Reforms" 
http://www.kantei.go.jp/jp/singi/keiza isaisei/pdf/10challenge02shousaiEN.pdf  
 
 "Japan Revitalization Strategy - Main Achi evements to Date and Further Reforms" 
http://www.kantei.go.jp/jp/singi/kei zaisaisei/pdf/seika02shousaiEN.pdf  
 
 "Abenomics: We Are Accelerating the Im plementation of Our Committed Reforms - 
  Highlights of the Growth Strategy to da te and measures for accelerating reforms" 
http://www.kantei.go.jp/jp/singi/kei zaisaisei/pdf/kaikakudankouEN.pdf 
 
Question 
 
5. Which government institution is in charge of this strategy?  
RESPONSE 
 The Japan Economic Cabinet Revitalization Bu reau, Cabinet Secretariat, Government of 
Japan, compiles the "Revised Japan Revitaliza tion Strategy" and each ministry is in 
charge of each policy mentioned.    2 Trade and Investment Regime 
2.3 Trade agreements and arrangements 
2.3.1 WTO Page 21, Para. 2.7 
 
"Japan actively participates in the WTO in both regular work and in negotiations. In recent years it has focused on the Trade Facilitation Agreement and is a party to the plurilateral negotiations on 
expanding the Information Technology Agreement,  trade in services, and Environmental Goods 
Agreement."  WT/TPR/M/310/Add.1 
 
- 179 - 
 
Question 
 
6. We would like to know Japan's view on how to drive forward Post-Bali Work Programme for the conclusion of Doha Development Agenda (DDA) negotiation? 
 
RESPONSE  
The government of Japan welcomes the adop tion of the Protocol amending the WTO 
Agreement at the Special Session of the Ge neral Council in November last year, which 
brought the process of the implementation  of Bali Package back on track. The 
government of Japan, together with othe r WTO members and the WTO Secretariat, will 
continue its utmost efforts to prepare the Post-Bali work program by July this year, 
which would lead to an early conclusion of DDA negotiation.  
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 30, Para. 3.18  "There are 161 tariff lines (1.8%) subject to MFN tariff quotas: 150 out-of-quota tariffs and 
11 out-of-quota tariffs of state trading (in-quota lines are excluded). The out-of-quota rates for 
38 tariff lines are ad valorem . The average rates differ considerably: in-quota rates average 
18.1%, while out-of-quota rates average 67.1%.  The quota allocation method and process 
remains somewhat intricate (section 4.1)." 
 Question 
 7. Could Japan provide information in which sectors the MFN tariff quotas are imposed? 
 
RESPONSE 
 
Although it is not clear what "MFN tariff quotas" stand for, in Japan, the following articles are subject to tariff quotas : malt, natural cheese, corn, molasses, food 
preparations containing cocoa, tomato puree and tomato paste, pineapples (in airtight 
containers), hides, skins and leather, f ootwear of leather, skimmed milk powder, 
evaporated milk, whey, butter an d butter oil, prepared edible  fats and oils, other dairy 
products, dried leguminous beans, starches , inulin and food preparations mostly 
containing starch, ground-nuts, tubers of Konnyaku and silk-worm cocoons and raw silk. 
 Question 
 8. How does Japan determine the quota allocation method for the agricultural sector? What is the rationale behind the method? 
 
RESPONSE  
The method for allocating tariff quota is dete rmined based on the ch aracteristics of each 
product.  Japan is convinced that its allocation regime  is implemented appropriately in line with 
Japan's Schedules, and is conducted in a fair and transparent manner. 
 3 Trade Policies and Practices by Measure 
3.1 Measures directly affecting imports 
3.1.4 Tariffs 3.1.4.2 Bound tariff 
Page 31, Para. 3.19 
 "Japan has bound 98.3% of lines (159 lines are unb ound) (Table 3.1); unbound lines relate mainly 
to fisheries (fish, crustaceans, seaweed), pe troleum oils, and wood and articles thereof. 
Ad valorem rates account for 8,417 bound lines (93.6%), of which 3,542 lines are duty free. The WT/TPR/M/310/Add.1 
 
- 180 - 
 
  
 
 difference between the average bound MFN tariff (5.9%) and the average applied MFN tariff 
(5.8%) in FY2014 was negligible, which reflects a hi gh degree of predictabili ty in the tariff. Japan 
has not used this gap to raise tariffs during the last few years. However, the average bound rate 
(WTO definition) is considerably higher for agricultural products (15.2%) than for non-agricultural 
products (3.7%)." 
 Question 
 9. Why has Japan imposed unbound tariff on fisheries and wood and articles thereof? 
 
RESPONSE 
 
Japan imposes unbound tariffs on certain fishery products important for the Japanese economy to prevent price fluctuations due to import surges. 
 
For wood and wood products the applied tariff rate for 34 unbound tariff lines in the HS44 category has been zero and our trading partners have shown no interest to bind 
tariff rates for these lines. 
 Question 
 
10. Does Japan intend to decrease its bound rate for agricultural products? 
 
RESPONSE 
 
Whether Japan will further reduce tariffs for agricultural products depends on various 
factors, such as DDA negotiations. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE 3.1 Measures directly affecting imports 3.1.8 Sanitary and phytosanitary measures 
Page 40, Para. 3.54 
 "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 inspection 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 government of Japan, through the government of 
the exporting country. As at October 2014, 3,891 su ch laboratories were registered. In the areas 
of animal health and plant health, Japan has not accredited any laboratory abroad."  
Question 
 
Recently, Indonesia is in the process of fulfilling the technical requirements requested by Japan 
with regard to the importation of tropical fruits , such as mango and melon. Several phases have 
already been settled in accordance with the procedur es set by Japan. In relation with the policy set 
out in Procedures for Lifting Import Ban, in the final stage when Indonesian products will be 
exported to Japan, Japan will send inspector officer to the exporting country.  
 Question 
 
11. Indonesia seeks further information whether the inspector officer will be sent for every 
consignment or only for the first consignment?  
RESPONSE 
 Although there are some steps to be finished  for lifting a ban on Indonesian mango and 
melon, plant quarantine inspector(s) will be  sent to confirm the required treatments 
basically for every consignments after lif ting a ban on import of fresh fruits. 
 WT/TPR/M/310/Add.1 
 
- 181 - 
 
4 Trade Policies in Selected Sectors 
4.1 Agriculture 4.1.2 Agricultural policies 4.1.2.1 Legal and institutional framework 
Page 73, Para. 4.15 
 "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 
 12. Could Japan explain the agricultural products which are categorized as protected and 
supported by the policy measures? 
 
13. Could Japan elaborate on the rationale behind its decision not to have the right to export 
subsidies under its WTO commitment? 
 
14. Could Japan indicate its intention to reduce its domestic subsidies for agricultural products in 
the context of the Post-Bali Work Program? 
 
15. Are these high level of protection policy measures also applied to imported agricultural 
products? 
 
RESPONSE 
 12. Based on the result of the Uruguay Round  negotiations, tariffs have been set for a 
certain number of products in order to mitigate the huge gap of productivities 
between domestic and foreign agriculture and, as shown in our notifications, domestic supports have been provided in  both product specific and non-product 
specific manner. 
 
13. The Government of Japan did not make reduction commitment for export subsidies 
in preparing its schedule in 1993, becaus e Japan had not granted export subsidies 
during the 1986-1990 base period. 
  14. A new commitment including reduction of domestic support is under negotiation in 
the Doha Round. 
 15. The agricultural products subject to these policy measures in Japan are partly 
imported. 
 
4 Trade Policies in Selected Sectors 4.1 Agriculture 
4.1.2 Agricultural policies 
4.1.2.2 Trade policies Page 73, Para. 4.18 
 
"Japan reserved the right to use the special agricultural safeguard (SSG) on 121 tariff lines. During the three years FY2011 to FY2013, Japan has app lied either the volume or price-based SSG a 
number of times to out-of-quota imports of a variet y of products (Table A4.1). These tariff lines 
include food preparations the prices of which woul d be expected to vary from one consignment to 
another more than prices for basic commodities. Therefore, it is not surprising to see the price-based SSG used several times a year  on some of these tariff lines." 
Question 
 
16. Could Japan explain the rationale behind im posing the high rate on the covered 121 SSG 
tariff lines? 
 WT/TPR/M/310/Add.1 
 
- 182 - 
 
  
 
 RESPONSE 
 High tariffs on the covered 121 SSG tariff lines are the result of tariffication agreed to at 
the conclusion of the Uruguay Round. They ar e implemented in accordance with Japan's 
schedule. 
 Page 73, Para. 4.19 
 
"In its most recent notification on imports under tariff quotas (for FY2012) to the WTO Committee on Agriculture, Japan has 18 tariff quotas covering 196 tariff lines at the 9 digit level.
6 Fill rates for 
each quota have been fairly consistent over the past few years but vary considerably from one 
quota to another. For example, the fill rates for "Other dairy products for general use", "barley and 
its processed products", "wheat … and its processe d products", "evaporated milk" and some others 
were over 90% for each year from FY2007 to FY2012 but fill rates for other quotas, such as 
"skimmed milk", "prepared whey (for infant formula)", "butter and butter oil", and some others 
were consistently below 40%."  
Question 
 
17. Could Japan explain why there is a large difference for the applied fill rates between one quota and another? 
 
RESPONSE  
The underfill of TRQs for some pr oducts is mainly related to the decline of their domestic 
consumptions related to these TRQs.  
How does Japan propose to rectify its underf illed quota in view of the Bali Ministerial 
Decision on the Understanding on Tariff Rate Quota Administration Provisions of Agricultural Products?  
RESPONSE 
 Concerning underfilled quotas, a scheme of reallocation has been implemented. Japan will properly 
implement the Bali decision on TRQ based on the discussion in the Committee on Agriculture of the 
WTO.  
 
Others 
 
Question 
 
19. Could Japan reduce the tariffs on fisheries products from Indonesia to the same level as 
imported fisheries products from Thailand? 
 
RESPONSE 
 The tariff rates Japan applies to fisherie s products imported from Indonesia and 
Thailand are the rates agreed as the bound tariff rates in the Indonesia-Japan Economic 
Partnership Agreement and the Japan-Tha iland Economic Partnership Agreement 
respectively.  
                                               
6 WTO document G/AG/N/JPN/196 of 1 October 2014. WT/TPR/M/310/Add.1 
 
- 183 - 
 
Question 
 
20. Would Japan continue the Capacity Building  Program (MIDEC) which has been terminated 
since 2013 in order to encourage the industry of dr ives sector; to establish the basis of R&D in 
Indonesia; and continue cooperation in other sectors? 
 RESPONSE 
 
Economic Partnership Agreement between Japan and Indonesia provides that the 
Parties shall undertake a general review of  the implementation and operation of the 
agreement in the fifth calendar year following the calendar year in which the agreement 
enters into force. Indonesian side could ra ise MIDEC as an issue for discussion in the 
general review.  
Question 
 
21. Would Japan cooperate on the implementati on of SPS Agreement, especially through a 
Mutual Recognition Arrangement (MRA), so Indone sia's exported products can fulfill Japan's SPS 
standards?  RESPONSE 
 
Japan has provided SPS-related technical assist ance to facilitate the implementation of 
sanitary and phytosanitary measures in va rious countries including Indonesia. (Please 
refer to G/SPS/GEN/1160/Add.2 for detailed information)  
Japan will continue to support Indonesia th rough these projects so that Indonesia's 
exported products can fulfill Japan's SPS standards. 
 
Question 
 22. Would Japan eliminate tariffs for the exportation of certain forestry products and plywood 
products, and recognize the SVLK (Indonesian standards)? 
 
RESPONSE 
 
Japan does not impose export tariffs on fo restry products and plywood products. With 
respect to "SVLK", Japan would like to disc uss the issue through "Bilateral Meeting 
between Indonesian Ministry of Environment and Forestry and Forestry Agency of Japan 
on Combatting Illegal Logging and Associated Trade".   Question 
 23. Would Japan improve the capacity building , which are implemented in Indonesia, and 
certification programs that are recognized by Indonesia's counterparts? Additionally, would Japan 
consider the creation of additional new programs, such as tourism industry, so as to not limiting it 
only to Nurses and Care-Workers?  
 
RESPONSE 
 Japan has contributed to the development of  Indonesia's industries for a long time 
through developing Indonesia's human re sources by ODA projects and Japanese 
company's activities. Japan will continue  to cooperate on capacity building. 
  So far, Japan has accepted candidates of nurse and careworker under the scheme of 
EPA. In addition to that, Japan has accepted  those who would like to learn the technical 
skills of Japanese industries for a certain pe riod under the scheme of Technical Intern 
Training Program. 
 WT/TPR/M/310/Add.1 
 
- 184 - 
 
  
 
 ADDITIONAL QUESTIONS 
 Page 15, Para. 4.7  
"In order to reduce the number of women who leave the workforce due to childbirth/child rearing 
and to increase the percentage of women in le adership positions, the government will take 
following measures: 
 
‐ introducing over 10,000 integrated after-school childcare services/programs and installing 
after-school childcare centres for about another 300,000 children by the end of March 2020. 
‐ reviewing tax and social security system in  2014 from a standpoint of being neutral with 
regard to how women choose to work." 
 Question 
 1-1 Has the program of opening over 10,000 inte grated after-school childcare already exist?  
 
RESPONSE 
 It was carried out in approximatel y 600 places (in fiscal year 2013). 
 
Question 
 
1-2 How this program be implemented? 
 
RESPONSE  
It will be implemented by disc ussion and review about inflection of school facilities in 
the meeting to set up every school distri ct newly as the place where the person 
concerned participates and the general council on education that is established newly as 
the organization which the head of the bo ard of education and the local governments 
discusses. 
 Question 
 1-3 Is this program available to foreign workers and investors?  
RESPONSE 
 It is available for both.  
Question 
 
1-4 What are the requirements needed to appl y for workers and the requirement to establish 
these after-school childcare services? 
 RESPONSE 
 
Regard to after-school childcare services , it was defined that the standard of 
administration and facilities are regulate ea ch town under the standard of the country 
and administrators must keep this standard. 
 
Requirements for workers were different ev ery company and cannot be said necessarily. 
 
Person qualified by a state examination as nursery teacher and social worker can 
become children's after school supporter if  they receive training that a prefecture 
carries out. 
 
The person starts after-school childcare se rvices needs to report names and addresses 
and other items specified by an  Ordinance of the Ministry of  Health, Labour and Welfare 
to the town beforehand from April 2015. Re gard to after-school childcare centers, WT/TPR/M/310/Add.1 
 
- 185 - 
 
special requirements are not decided becaus e it depends on the participation of the 
volunteers such as local resident.  Question 
 2-1 Could Japan please further elaborate the publication process as shown in both charts?  
RESPONSE 
 
Japanese Industrial Standards (JIS) draft is  formulated by an industrial association 
entrusted by the relevant Ministry, or any in terested parties. The draft is proposed to 
the competent Minister, the competent Minister  submits the draft to Japanese Industrial 
Standards Committee (JISC) for deliberation.  Then, board or technical committee of 
JISC, which is composed of members from industries, pe rsons having an academic 
background and consumers, deliberates JI S draft and reports the result of the 
deliberation to the competent Minister. Afte r that, the competent Minister establishes 
JIS and announces it in Official Gazette. 
 
In regard to JAS, proposal for establishment,  revising or abolishment is prepared the 
Original Proposal Preparation Body. After proposal, public comments for the proposal 
are invited. Then, the JAS council deliberat es the proposal in which the submitted 
comments are taken into consideration. Fina lly, public announcement is carried out by 
publication in the Official Gazette.  
Question 
 
2-2 Can an international organization be involved in the publication process? 
 
RESPONSE 
 Japan has been implementing the transparent process as follows in order to give 
opportunities for stakeholders including fore ign parties to participate in the process. 
 a)  Any stakeholders can make comments to relevant committees at the stage of 
preparing draft standards of JISs and JASs  and necessary 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 and revision of JISs and JASs. 
 Question 
 2-3 Can an association give their comment in the publication process?  
RESPONSE 
 
Any stakeholders can submit their comments at the opportunities mentioned in 2. 
 
Question 
 3-1  What is the rationale consideration to impose additional market access measures for tuna 
and tuna-like species?  
 RESPONSE 
 The resource of tuna and tuna-like species is conserved and managed by the Regional 
Fisheries Management Organizations (RFMOs ) of tuna. There are five RFMOs in the 
world. The import controls are taken under measures each RFMO settles on from the 
view of resource management, and not only Japan but also all member countries of RFMOs have to obey it.  WT/TPR/M/310/Add.1 
 
- 186 - 
 
  
 
 Question 
 
3-2 Could these measures discriminate the major fish imports derived from other countries? 
Please explain. 
 
RESPONSE 
 
These measures are to complement fisher ies sustainable use, conservation and 
management of fishery products as valuable  natural resources. Therefore, they do not 
discriminate fish imports.  
 
 WT/TPR/M/310/Add.1 
 
- 187 - 
 
17.  NORWAY 
Questions related to the Report by the Secretariat 
 
Export credits  
 
1) In the Secretariat's report WTR/TPR/S/310, the Japanese export support and promotion 
system is described. Norway is keen on learning  how other countries support and promote export. 
The report is interesting in this respect. Table 3.8 shows the insurance activity of Japans Nippon 
Export and Investment Insurance (NEXI), including underwritten amount, claims paid and premium income across different product groups. Table 3.9 in the same report shows lending and investment from Japan Bank for International Cooperation (JBIC), including guarantees. For our 
understanding of the Japanese export support and promotion system, we would appreciate a 
similar table as 3.8, also for JBIC, including underwritten amount, claims paid and premium income across different product groups. Other information that elaborates on Japan's export 
support and promotion system and interaction be tween NEXI and JBIC would be appreciated. 
 RESPONSE 
 
Unlike NEXI, which is an insurance provider, JB IC is a direct lender , and therefore it is 
not capable of providing a similar table as 3.8.  
Just for reference, please see the table, which provides information regarding JBIC's 
activities.   
Under Japan's export support and promotion system, JBIC provides direct loans in 
cofinancing with private financial institut ions whose portion is covered by NEXI 
insurance. WT/TPR/M/310/Add.1 
 
- 188 - 
 
  
 
 Disbursements （￥ billion）
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
 Export loans 43.8 73.6 73.9 143.1 112.5 Import loans 159.9 72.3 212.2 162.7 234.5 Investment loans 2,222.8 1,041.5 700.7 2,144.6 1,928.0 Untied loans 186.7 104.4 103.2 52.2 88.5 Equity Participations 13.6 26.8 7.3 17.2 85.4 Guarantees 703.4 777.0 310.8 270.6 178.7 Others - - - 79.7 - Total 3,330.4 2,095.8 1,408.4 2,870.4 2,627.8
Repayments （￥ billion）
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
 Export loans 119.9 152.5 125.3 112.4 106.3 Import loans 60.0 197.3 252.4 147.4 170.1
 Investment loans 414.9 463.8 711.7 707.1 668.1
 Untied loans 242.4 204.9 192.4 161.6 173.5 Equity Participations 0.0 0.8 6.1 3.0 5.0 Guarantees 343.9 236.7 362.6 318.1 204.9 Others 2.6 2.4 3.1 82.6 2.9 Total 1,183.9 1,258.6 1,653.9 1,532.4 1,331.1
Outstandings （￥ billion）
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
 Export loans 808.2 698.5 642.9 710.3 740.6 Import loans 793.2 630.5 584.4 630.2 731.6 Investment loans 5,786.3 5,827.2 5,762.9 8,165.9 10,183.9 Untied loans 1,333.9 1,183.7 1,086.3 1,035.8 998.8 Equity Participations 44.2 72.6 70.3 100.1 187.0 Guarantees 1,977.0 2,443.2 2,378.3 2,400.6 2,422.6 Others 51.9 54.3 45.6 42.6 39.7 Total 10,795.1 10,910.3 10,571.0 13,086.0 15,304.6
 
※ Revenue from guarantee fees is undisclosed. 
2) As described in section 3.3.2 of the Secretariat's report WTR/TPR/S/310, Japan has general 
support schemes to promote manufacturing, business creation and programs which include direct support for financing. Does Japan have schemes that specifically target ship building, maritime 
industries or similar, other than maritime  transport, described under section 4.6.1? 
 
RESPONSE  
Japan has the following schemes that specifica lly target maritime industries, other than 
maritime transport, described under section 4.6.1.   
1. Grant for promotion of research an d development of offshore technology 
  Outline/explanation of the measure: The project started for research and 
development of high level techno logies for offshore development 
 The amount actually commi tted FY 2013: 280 mil JPY 
 Grant intensity: Up to 50% of eligible costs WT/TPR/M/310/Add.1 
 
- 189 - 
 
2. Grant for promotion of research  and development of green ships 
  Outline/explanation of the measure: The project started for research and  
development of high level technologies for reducing CO2 emissions from the 
international shipping sector 
 The amount actually commi tted FY 2013: 330 mil JPY 
 Grant intensity: Up to 33% of eligible costs. 
Maritime transport sector 
 3) In the Secretariat's report WT/TPR/S/310, it is stated in section 4.6.1, paragraph 4.125 that 
Japan has cabotage restrictions meaning that only Japanese flag carriers may carry goods and 
passengers from one Japanese port to another. However, it is also mentioned that under treaties 
of friendship, commerce and navigation, Japan allows ships to access cabotage services on reciprocal basis by obtaining permits from MLIT. 
 
It would be interesting to hear more in detail how many such treaties of friendship, commerce and navigation Japan has signed that cover access to cabotage services on reciprocal basis, and with 
whom. Furthermore, it would be interesting to know if access to cabotage services under these 
treaties always depend on permits from MLIT. It would also be of interest to hear if these openings are widely used in practice, and whether or not Japan sees a need for an increased number of foreign operators in the maritime domestic transport sector in the year to come. 
 
RESPONSE  
Japan has concluded a treaty of friendsh ip, commerce and navigation with Norway. 
 Regardless of having such treaties, if shi pping companies transport goods or passengers 
by using foreign flagged vessels between ports of Japan, they need to obtain the special 
permission from the Minister.  Japan does not see a need to increase the number of foreign operators in the maritime 
domestic transport sector. 
  
Japan has no plan to relax maritime cabotage. 
 
4) As regards concerns from the maritime industry, we would like to point at Line Throwing 
Appliances using air cylinder (high pressure). These appliances launch a rope from vessels to a 
distant place for the purpose of safety oper ations, rescue, and more. The appliances are 
categorized in Japan as fire arms because of it s launching/shooting capability. However, similar 
products made in Japan seem to be categorized in  a different way (not as guns/fire arms). This 
creates difficulties for exporters to Japan. We wo uld therefore be interested in hearing about the 
background for categorizing the Japanese and imported appliances differently, and if you may 
consider taking steps in order to create a level playing-field for this segment.  
RESPONSE 
 Imports of Line Throwing Appliances using air cylinder (high pre ssure) are handled in 
accordance with relevant law. Therefore, th e products made by Japanese manufacturers 
and those made by foreign manufacturers incl uding those produced in foreign countries 
are treated equally.  
5) Another question is related to emergency drinking water for lifeboats and life rafts. The 
Ministry of Health, Labor and Welfare does not allow the emergency drinking water to be distributed to Japanese ships, since the water contains silver as a preservative. The emergency 
water is internationally approved for emergency use, and it is used only when life is in danger. It is 
therefore unfortunate that it may be sold to foreig n ships, but not to ships registered in Japan. We 
would encourage Japan to reconsider the issue and allow this internationally approved water to be 
distributed to Japanese flagged ships. 
 WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 The Japanese Government doesn't prohibit a ship from equipping emergency water. 
 
Economic Partnership Agreements 
 6) As the Japan-Australia Economic Partnership Agreement (EPA) recently came into force, and 
the Japan-Mongolia EPA is expected to be signed soon, would Japan also consider entering into 
new bilateral processes with other trading partners?  RESPONSE 
 
Japan is promoting economic partnership as a basis of global economic activities in 
order to take in the world economic gr owth for Japan's economic growth. Japan 
continues to work simultaneously, strategica lly and swiftly on the existing 8 EPA/FTAs 
negotiations including the Trans-Pacific Partnership (TPP).   
In choosing an EPA/FTA negotiation part ner, Japan comprehensively takes into 
consideration relevant factors including th e progress of existing negotiations of 
EPA/FTAs, economic and diplomatic viewpoints , and situations of a possible candidate of 
an EPA/FTA negotiation partner. 
 
 WT/TPR/M/310/Add.1 
 
- 191 - 
 
18. EUROPEAN UNION 
2. Trade and Investment Regime 
2.3 Trade agreements and arrangements 2.3.2. Regional and preferential agreements 
Paragraphs 2.9 to 2.11, page 
 Japan is in the process of negotiating several EPAs and regional agreements with third countries.  
 
EU question 1  
 Could Japan clarify whether the implementation of  an FTA require amendments to the internal 
legislation and/or FTAs rules are directly applicable?  
 RESPONSE 
 
The Government of Japan amends or legislat es, when necessary, relevant domestic laws 
and regulations to comply with obligations under EPA/FTAs. 
 
EU question 2 
 While the Japan Australia EPA (JAEPA) is regarded as so far the most ambitious agreement in 
terms or agricultural market access concessions granted by Japan, still several agricultural 
products are excluded from the agreement. Does Japan regard JAEPA as a benchmark for its future EPAs in agricultural market access?  
 
RESPONSE  
Japan is working on EPA/FTAs negotiations with a view to realizing agreements which 
contribute to its national interests and prof it Japan as a whole, while considering its 
sensitivity on agricultural products.  
3 Trade Policies and Practices by Measure 
3.1 Measures directly affecting imports 3.1.1 Customs procedures and requirements 
Paragraphs 3.2 - 3.3, page 26 
 The report states that Japan Customs introduced the Authorized Economic Operator (AEO) 
programme in March 2006 and subsequently developed it to simplify customs procedures and 
facilitate legitimate trade.  EU questions 3 to 6 
 Could Japan indicate what is the rate of physical examinations of shipments of AEOs compared to the rate of examination of non-AEOs? Could Japan clarify what are the reasons for not allowing 
customs clearance for AEOs outside of local customs jurisdiction territories? Is Japan considering 
establishing an AEO centre as a single central point of contact nationwide? Are there any exceptions when recognizing the AEOs status granted in partners having a mutual recognition 
agreement with Japan? 
 RESPONSE  
1.  Considering the nature of the requested information, the Government of Japan 
cannot disclose the information. 
2.  Regardless of whether to have an AE O status, Japan considers it important to 
process customs clearance at a customs offi ce that has the jurisdiction over the 
bonded area where the foreign goods are stored, with a view to ensuring legitimate customs clearance and e fficiency of logistic processing. 
3.  Japan is not considering establishing such a single central point of contact. 
4.  There are no such exceptions.  WT/TPR/M/310/Add.1 
 
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 3.1.2 Customs valuation  
Paragraphs 3.6 and 3.7, pages 26 - 27  EU questions 7 and 8 
 Could Japan explain the state of play of customs liberalisation plan by the Ministry of Finance including the introduction of a single custom territory and whether there is any plan to align the 
administrative working procedures of the nine customs jurisdictions (Hakodate, Tokyo, Yokohama, 
Nagoya, Osaka, Kobe, Moji, Nagasaki, and Okinawa)? Do administrative working procedures cover also customs procedures? i.e. is it that Japan has different customs procedures and documentation among the different customs territories?  
 
RESPONSE  
Japan constitutes a single customs territory. Every regional Custom s of Japan apply the 
same laws and regulations and thus the same  customs procedures are applied to every 
regional customs of Japan. 
 
EU question No 9 
 Does Japan/will Japan provide for appeals on advance rulings? 
 
RESPONSE  
It is possible for an applicant to request a review of the advance ruling. 
 Paragraphs 3.8, page 27 
 
According to the report, importers may pay the assessed customs duty through the multi-payment network system.  
EU question 10 
 
Could Japan clarify how are fees and charges related to customs procedures determined in order 
to take into account the provisions  of Art. VIII.1.a) of the GATT?  
 RESPONSE 
 
The government of Japan sets its fees and charges for customs procedures by limiting 
the amount to the approximate cost of services rendered in accordance with the provisions of Art. VIII.1.a) of  the GATT. Please refer to th e following for details of the 
fees and charges related to the customs procedures of Japan. 
Cf: http://www.customs.go.jp/eng lish/exp-imp/customsfee.htm.  
 
3.1.7 Standards and other technical requirements 
 According to EU companies, a company which a pplies for market access for a food or feed 
additives has to submit loads of information and statistical data because Japan does not accept 
internationals standards but wants to conduct its own assessment. For example, with reference to the MRL's (Maximum Residue Limits of pesticides on fruits and vegetables including processed and 
refined products): in case Japan has no specific MRL set for a certain commodity, then the MRL set 
for the food classification that is relevant to th e commodity applies However, if there is no MRL set 
for the food classification to which the commodity belongs, Japan applies the uniform default standard of 0.01ppm. 
 
EU question 11 
 
Could Japan explain why it does not accept the use of international standards?  
 WT/TPR/M/310/Add.1 
 
- 193 - 
 
RESPONSE 
 Taking into consideration food intakes by  Japanese citizens, Japan establishes and 
revises MRLs (maximum residue limits) for ag ricultural chemicals, including pesticides 
and veterinary drugs, based on risk a ssessment conducted by the Food Safety 
Commission of Japan (FSC).Japan harmoniz es Japan's MRLs with Codex standards 
where appropriate. In addition, Japan consider s real situation when it requests data to 
countries that ask Japan to set specific MRLs. Taking the setting of MRLs for a pesticide, 
for example, when there are Codex stan dards set for some crops, Japan will not 
necessarily request residue study data on the crops. Japan will set MRLs even when 
residue data are not available .  
 
Japan applies the uniform limit (0.01 ppm) fo r the food products-chemical combinations 
for which specific MRLs are not set. The uni form limit was set as the limit unlikely to 
cause damage to human health, based on an  acceptable exposure limit for chemical 
substances that were scientifically ev aluated by JECFA (Joint FAO/WHO Expert 
Committee on Food Additives) and th e US Food and Drug Administration .  
 
If the European Union would like to request Japan to set specific MRLs, Japan recommends that the EU file an application with the Ministry of Health, Labour Welfare 
of Japan requesting the setting of import tolerances. 
 
Paragraph 3.37, page 35  
EU questions 12 and 13  
 
Could Japan indicate, among the 5823 JIS standards harmonised with international standards, 
what is the percentage of identical standards (I DT) and the percentage of modified (MDF)? Could 
Japan precise the percentage of mandatory standards among the JIS and JIS/harmonised standards?   
RESPONSE 
 Among the 5823 JISs which have corres ponding international standards, the 
percentages of identical standards (IDT) and modified standards (MOD) are 40% and 
57% respectively.  
All JISs are voluntary standards. However, JISs can be bases for technical regulations 
when they are cited in laws. The number  of such cases has not been acquired.  
 Paragraph 3.42, page 36 
 
EU question 14 
 
Could Japan provide data on the geographical dist ribution and sector (type of products) of these 
859 foreign factories (in particular in the EU), an d give an indication of the "coverage" of the 
certified factories in terms of imports into Japan (in other words, what % of EU exports to Japan 
come from JIS mark certified factories)? 
 RESPONSE  
Regional and sectoral breakdown of 859 fore ign certified factories are as follows. 
 The data about the "coverage", that is the sh are of export of foreign certified factories 
from EU to Japan in terms of mone tary amount, has not been acquired.  
 WT/TPR/M/310/Add.1 
 
- 194 - 
 
  
 
 List of regional breakdown of  foreign certified factories 
Region Number of certified factories 
Korea, Republic of 463 
China 178 
Chinese Taipei 77 
Thailand 37 
Viet Nam 35 
Indonesia 23 
Malaysia 14 
EU 10 
Philippines 6 
United States 4 
New Zealand 3 
Australia 3 
Lao People's Democratic Republic 2 
Switzerland 2 
Russian Federation 1 
Brazil 1 
Total 859 
 
List of sectoral breakdown of  foreign certified factories 
Sector Number of certified factories 
Ferrous Materials and Metallurgy 419 
Mechanical Engineering 122 
Civil Engineering and Architecture 116 
Electronic and Electrical Engineering 31 
Non-ferrous Metals and Metallurgy 30 
Chemical Engineering 30 
Ceramics 25 
Medical Equipment and Safety Appliances 15 
Domestic Wares 8 
Automotive Engineering 3 
Railway Engineering 2 
Miscellaneous (Packaging, Welding, Radioactivity, etc.) 63 
Total* 864 
* Total does not match the 859 since there are factories that are certified to multiple sectors. 
3.1.8 Sanitary and phytosanitary measures 
Paragraph 3.52, page 39 
 
According to the report, Japan has at least 800 food additives which are approved for use. It is added that it is very difficult for authorities to confirm whether all these substances comply with 
international standards. 
 EU questions No 15 and 16  
 Does Japan plan to further align its food additive and pesticide standards with international standards? Will Japan accelerate the approval procedures in place for food additives that are widely used around the world and considered safe but that are still subject to lengthy and 
cumbersome approval procedures in Japan? 
 RESPONSE 
 
Japan considers Codex standards in the proce ss of the designation of food additives and 
the establishment of pesticide MRLs. The Mini stry of Health, Labour and Welfare (MHLW) 
has made the utmost efforts to streamline th e designation process for food additives. 
Specifically, MHLW has facilitated communica tion with the Food Safety Commission 
(FSC), a risk assessment body, and efficientl y handled the clerical work needed by the 
time MHLW requests the FSC to carry out sa fety assessments so that assessment can be 
carried out in a more expedited manner. In J une 2014, the MHLW established a center in 
the National Institute of Health Sciences to  provide consultation on the designation 
procedure for food additives (Food Addi tive Designation Consultation Center) . 
 WT/TPR/M/310/Add.1 
 
- 195 - 
 
Table 3.5, page 39 
 According to Table 3.5, the MAFF provides the legal basis for the Japanese Agricultural Standard (JAS) and criteria for adopting standards, qualit y grading, labelling, registration of certifying 
bodies, etc. 
 EU question 17  
 Could Japan clarify what kind of quality grading does the Japanese Agricultural Standard JAS provide for?   
RESPONSE 
 There are five kinds of JAS grading as follows: 
 JAS (General JAS) 
Applied to the foods and the forestry  products which conform to the JAS 
for quality, such as grade, composition and performance. 
 Specific JAS 
Applied to the foods which conform to the J AS for specific method of production or 
manufacturing and the foods which co nform to the JAS for distinctive 
characteristics in quality, etc. co mparison to ordinary products.  
 Organic JAS 
Applied to the agricultural products, et c. which conform to the Organic JAS. 
Unless organic JAS logos are attached to the plant products or processed foods of 
plant origin, they can't be labelled as "organic". 
 Production Information JAS 
Applied to the beef and pork whose info rmation about feeds and animal medicine 
is disclosed, and plant products whose information about pesticides and fertilizers used by producer is disclosed. Disclosing  method shall conform to the Production 
Information JAS. 
 Distribution under fixed temperature control JAS 
Applied to Bento (lunch box) made with rice which distribute d under consistently 
fixed temperature control from production to sale.  
 
 Paragraph 3.53, page 40  
The report indicates that Japan currently imposes import prohibitions on beef and poultry from 
various countries to prevent the spread of BS E and avian flu. According to the report the 
authorities maintain that the process of lifting the import ban includes technical consultations, 
consideration of import requirements and the implementation of risk assessment that takes due 
account of the OIE code.  
EU question 18 
 
When would Japan fully align with the OIE code concerning the import conditions for beef and other bovine products, e.g. allow bovine meat other than animals only under 30 months of age to 
Japan? WT/TPR/M/310/Add.1 
 
- 196 - 
 
  
 
 RESPONSE 
 The SPS Agreement requires that the sanitary or phytosanitary measures conducted by WTO Members to be based on scientific prin ciples. The MHLW requests risk assessment 
to FSCJ taking into account the OIE evaluati on. The MHLW has lifted import ban of beef 
and beef offal from several BSE affected coun tries at certain age limit according to the 
results of risk assessment conducted by FSCJ. For relaxing further age restrictions based 
on the international standards, the MHLW  has already requested additional risk 
assessment to FSCJ. FSCJ will be able to  complete the assessment when all the 
necessary information, such as more da ta collected by the risk management 
organizations and new scientific  evidences, become available. After FSCJ notifies the 
MHLW of the risk assessment result, the MHLW  will consider further relaxation of 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 , timeline and result of  the risk assessments. 
 EU question 19 
 How is Japan going to accelerate the lifting of the ban for poultry and other 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 does not end up on significant delays (even years)? 
 RESPONSE 
 
SPS measures of Japan are in general based on relevant international standards, or 
where its measures do not conform to relevant  international standards, it is based on 
scientific risk assessment, in a ccordance with the SPS Agreement. 
 Japan has been applying the regionalization pr inciple, i.e. measures are adapted to the 
sanitary characteristics of the area from the product or iginated, for certain animal 
diseases such as FMD, HPAI, CSF, taking into account the risk assessment results and 
the OIE code without unnecessary delay.  
Japan will continue to proceed with its efforts.  
 Some additives used by producers of wines and spir its from around the world, although recognized 
under Codex Alimentarius are not allowed in Japan.  
 EU question 20 
 
While recognizing the opportunity for Japan to maintain SPS measures that create a higher level of 
protection than that permitted by Codex standard s, would it be possible to know the scientific 
rationale justifying such a degree of protection, whereas the agreement SPS admits the application 
of sanitary and phytosanitary measures only to the extent necessary to protect health, and that 
such measures should not be maintained in the absence of scientific evidence?   
RESPONSE 
 In designating food additives and revising specifications and standards for additives 
based on the Food Sanitation Act, Japan puts  great importance on scientific evidence 
and rationale. Japan provides interested pe ople with opportunities to know evidence 
and rationale to the extent possible. Specif ically, advisory committee meetings are held 
in public. Documents used in the meetings ar e published on the website of the Ministry 
of Health, Labour and Welfare.  
 Japan approves food additives based on an a pplication submitted by an applicant. This 
system is quite similar to the approval sy stem in the EU countries. When the MHLW 
receives an application from an applican t, the MHLW initiates the procedure for 
designation.  WT/TPR/M/310/Add.1 
 
- 197 - 
 
3.1.9 Labelling and packaging requirements 
 There is no mention of traceability related info rmation in the description of the requirements 
provided by Japan.  
 
EU question 21  
 
Could Japan provide details on the rules applicable as regards traceability in Japan, if any?  
 RESPONSE  
In Japan the Rice Traceability Act and Beef Traceability Act are enacted.  
 The Rice Traceability Act requires rice de alers, food processors who produce rice 
products, and rice producers to keep transa ction records of rice and rice products. 
 The Beef Traceability Act requires cattle pr oducers to report information on cattle, 
including birth, receipt and transfer, to the individual identification database.  
 Paragraph 3.56, page 43  
According to the report, imported processed food do es not require labelling of place of origin of the 
ingredients, which is mandatory for domestically -produced processed food. All organic plants and 
organic processed foods to be sold in Japan must  comply with the JAS organic standards and carry 
the JAS organic mark. 
 EU question 22 
 Could Japan explain why imported processed foods are not subject to labelling of place of origin of the ingredients, considering that they may be subject to fraud?  
RESPONSE 
 It is not generally a common business practice  to pass on the information of place of 
origin of the ingredients in the world of today. Therefore, from the feasibility 
perspective, Japan considers that requirin g labelling of place of the ingredients on 
imported processed foods would be difficult. 
 
EU question 23 
 Following the notice issued in  October 2014 by the National Tax Agency reminding the 
recommendation of the MHLW on the importance of  protecting the batch identification numbers 
placed on alcoholic beverages, to allow traceability  and ensure the highest degree of protection of 
the consumer, does Japan plan to incorporate the recommendation in its regulations, prohibiting 
the sale of imported alcoholic beverages in case batch identification numbers have been removed 
or damaged?   
RESPONSE 
 Regarding this issue, the Government of Japa n has already taken the action, that is, the 
National Tax Agency issued notices to liq uor industry groups in September 2014. 
 
In Japan, the licenses are required to pr oduce or sell alcoholic  beverages and the 
licensees have to keep records of their every purchase and sale of alcohol beverages 
under the Liquor Tax law. Therefore, the tr aceability of the distribution of alcoholic 
beverages is ensured and no problems have occurred. In addition, there is no plan to legi slate for mandatory labelling of the batch 
identification numbers for all food.  
 WT/TPR/M/310/Add.1 
 
- 198 - 
 
  
 
 3.1.10 Government procurement 
Paragraph 3.64, page 41  In this paragraph, Japan's voluntary measures are mentioned with a limited explanation in the 
footnote. 
 EU questions 24 and 25  
 Could Japan provide further details on these voluntary measures (in particular regarding their scope, purpose, rules and thresholds applicable )? Could Japan further specify the differences 
between procurement procedures applied at central level and the procedures applicable at local 
level (correspondence table for instance)? 
 RESPONSE 
 
With the aim of expanding procurements of competitive foreign products and services, 
the Government of Japan has implemented the voluntary measures to ensure non-
discriminatory, transparent, fair, competit ive and open public sector procurement 
procedures.  As the footnote 44 in the Report by  the Secretariat (WT/TPR/S/310) states, 
procurement for public works (including arch itectural, engineering and other technical 
services) and by sub-central government en tities are excluded from the measures. 
 
As the voluntary measures, the Government of Japan has lowered the thresholds from 
130,000 SDR to 100,000 SDR for the procurement of the goods and services by the entities listed in Annex 3 of Japan in Appe ndix I of the WTO Agreement on Government 
Procurement. 
 Also, as the voluntary measures, the Governme nt of Japan has established the following 
procurement procedures to further guarante e transparency, fairne ss and competition: 
(1) invitation to submit materials for determin ation of specifications, etc.; (2) invitation 
for comment on proposed specifications; and (3) disclosure of designated suppliers 
when the Selective Tendering Procedure is implemented. The procurement procedures 
including the voluntary measures can be viewed at: 
http://www.mofa.go.jp/files/000037391.pdf . 
 
The differences between procurement proced ures applied at central level and those 
applicable at local level are that the ab ove-mentioned voluntary measures are not 
applied to local government entities.  
Paragraph 3.66, page 42 
 The GPA closely circumscribes the situations in which the limited tendering procedures can be 
used. 
 EU questions 26 and 27 
 Could Japan confirm whether equal conditions are applicable for single tendering and for the 'limited tendering' procedure? Could Japan further indicate whether the accounting law provides for additional single tendering cases compared wi th the cases for limited tendering under the GPA? 
 
RESPONSE  
As for the "single tendering" which falls with in the scope of "limited tendering" under 
the GPA, the same conditions as those for " limited tendering" under the GPA are applied 
in the laws and regulation in Japan. 
 
While the Accounts Law provides open tend ering procedures as the basic bidding 
procedure, it provides exceptions that allo w for single tendering, including cases which 
falls outside of the GPA. Such cases are stipulated in the Accounts Law; where the 
nature or objective of a contract does no t allow competition; where competition is WT/TPR/M/310/Add.1 
 
- 199 - 
 
impossible due to the urgent nature of the contract; where competition is 
disadvantageous; and where the contract value is small.   
 Paragraph 3.68, page 42 
 
EU question 28 
 
Could Japan provide data on the percentage of these Information Systems contracts awarded to 
foreign suppliers?   RESPONSE 
 
According to the annual report on government  procurement, in 2012 the percentage of 
contracts for office machines and automati c data processing equipment awarded by 
foreign suppliers was 5.3%, while for comput er and related service it was 3.2%. As 
footnote 44 in the Report by the Secret ariat (WT/TPR/S/310) states, procurement for 
public works and procurement conducted by su b-central entities are not calculated in 
the amount. 
 Paragraph 3.69, page 42  
EU question 29  
 
Could Japan provide estimates on procurement sp ending, with distribution between central and 
local level? What is the share of SMEs among the 267 foreign suppliers? 
 RESPONSE 
 
As the local government is not covered by voluntary measures on government 
procurement, it is not possible to provid e estimates on procurement spending with 
distribution between central and local level based on the statistics mentioned in the 
above paragraph. (Please see footnote 44 in the Report by the Secretariat 
(WT/TPR/S/310).   
Statistics on the procurement covered by the GPA are available at the WTO website,  
https://docs.wto.org/dol2f e/Pages/FE_Search/FE_S_S006.aspx?Query=(@Symbol=%
20gpa/*%20and%20(@Title=%20japan%20and %20statistics))&Language=ENGLISH&
Context=FomerScriptedSearc h&languageUIChanged=true# . 
 
As of February 19, 2015, 134 SMEs out of 281 foreign firms (were either wholly or partially owned by foreigners) have centra l-government-wide unified qualification for 
participating in tendering contracts for, inte r alia, manufacturing, sales of products, and 
offers of services.  
Paragraph 3.70, page 42 
 EU questions 30 and 31 
 Could Japan provide data on the targets set for procurement from SMEs for the last 5 years, and the achievement rate of those targets? Could the Government of Japan provide data on the share of foreign SMEs that have been granted contracts that fall under the "Cabinet Order Stipulating 
Special Procedures for Government Procurement of Products or Specified Services" and the "Law 
on Ensuring the Receipt of Orders from the gove rnment and Other Public Agencies by Small and 
Medium Enterprises"?  
 WT/TPR/M/310/Add.1 
 
- 200 - 
 
  
 
 RESPONSE 
 Regarding data on the targets set for procur ement from SMEs for the last 5 years and 
the achievement rate of those targets, please see below. 
 Targets 
（\100million (JPY) ） Actual amount 
（\100million (JPY) ） Achievement rate (%)  
2010 FY 38,656 32,265 83.5 
2011 FY 37,915 36,256 95.6 
2012 FY 38,312 38,067 99.4 
2013 FY 41,902 42,779 102.1 
2014 FY 43,744 － － 
With regard to the share of foreign SMEs, we don't have data. The total amount of the 
procurement from SMEs is collected every ye ar but the specific information on foreign 
SMEs is not collected.  
Table 3.6 Procurement by product and by origin, 2011 and 2012 
 Reference is done to the figures showed on the railway vehicles and associated 
equipment (see line 18 of the table). 
 EU question 32 
 
Could Japan provide details on the railway vehicles procurement data for year 2011 (9.01 bn yen), 
in particular which products were procured by which operators and from which suppliers? Could 
Japan please elaborate the reasons why there is a complete lack of foreign shares in 2012?  
 
 RESPONSE 
The details of the procurement conducted in 2011, including the name of products, the 
railway operators covered by the voluntary measures, and the suppliers, are available 
on the following website in Japanese. "Railw ay vehicles and associated equipment" falls 
within the category of "code 18" on the table on the website.  
There is no special reason for complete loss of foreign shares in 2012, it is the result of 
fair tenders. http://www.kantei.go.jp/jp/kanbou/ 24tyoutatu/1_buppin/index.html.  
 
3.2.4 Export support and promotion  Paragraph 3.89, page 46 
 
EU question 33 
 Would it be possible for Japan to provide a table of investment projects related to raw materials? 
The EU is interested in the Japanese global strategy to securing supply of raw materials for its 
economy/industry.  WT/TPR/M/310/Add.1 
 
- 201 - 
 
RESPONSE 
 Please see the figure.  
 
 
 
 
 
Source: Japan Bank for Inte rnational Cooperation.  
3.3 Measures affecting production and trade 
3.3.1 Taxes Table 3.13 Excise duties 
 
EU question 34 
 
Under the current motor vehicle taxation system private passenger cars are subject to a tonnage 
tax of Y 4,100/0,5 t per year while mini-vehicle (kei cars) are subject to a flat rate of Y 3,300 irrespective of their weight. As a result passenger cars of similar weight are more heavily taxed than mini vehicles.  Could Japan explain what are the justifications for granting a separate 
tax treatment to mini-vehicles?  
 RESPONSE 
 
The tax treatment of light motor vehicles  (kei cars) was set based on its unique 
characteristics, such as shorter duration of usage, smaller size and lighter weight. 
Considering those unique characteristics ment ioned above and avoiding sudden increase 
of tax burden on owners of light moto r vehicles, the government of Japan has 
maintained the separate tax treatment of light motor vehicles.  
EU question 35 
 
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 will be subject to a tax of Y 29,500 per year. Mini vehicles with an engine capacity below 660cc are currently subjec t to a kei- car tax of Y 7,200. The recently WT/TPR/M/310/Add.1 
 
- 202 - 
 
  
 
 adopted Outline for Taxation for FY 2015 foresees that such a tax will be increased to Y 10,800 as 
of next financial year, thereby slightly reducing the tax differential between kei cars and passenger cars. Does Japan intend to continue to adapt its tax system reduce such tax differential in the coming years? 
 
RESPONSE  
Kei-car tax (including passenger kei-cars) was decided to increase by the annual tax 
reform in fiscal year 2014. The decision wa s taken from a viewpoint of taking a balance 
of tax burden between kei-cars and sma ll cars under 1,000 cc displacement with a 
background of increasing in size and advancing functionalities of kei-cars. 
Japan considers that tax rates of (normal) ca rs and kei-cars should be examined, taking 
into consideration of all the factors including its performance, its usage situation in local 
areas, tax burdens of tax payers and environmental policies.
 
 3.3.2. Subsidies and support  Paragraph 3.112, page 53 
 
EU question 36  
 Could Japan please provide more information about the subsidy scheme for vehicles powered by 
fuel cells? The total budget and the eligibility criteria of the scheme as well as the "buy locally" 
provisions are of particular interest.  
RESPONSE 
 In fiscal 2015, a 20 billion yen subsidy is appropriated for clean energy vehicles. 
The subsidy scheme is as follows: 
 First, an automobile company submits requ ired documents to the next generation 
vehicle promotion center and obtains an appr oval recognizing a clean energy vehicle. 
 
Second, a purchaser of a clean energy vehicl e must apply for the subsidy to the center. 
Both vehicles produced by Japanese car ma nufacturers and those produced by foreign 
car manufacturers, including those produced in foreign countries, are eligible for the 
"subsidy for vehicles.'' Therefore, the subs idy conforms with the WTO agreements, in 
particular the provision regarding National Treatment.  
 
3.3.3. State-owned enterprises Paragraphs 3.113-115, page 54  
EU question 37 
 
Could Japan please confirm that all economic activities – providing services or goods to businesses 
or the public – of all incorporated administrative  agencies (IAAs) are subject to the Antimonopoly 
Act (AMA)? If not, please specify which IAAs are exempted from the scope of the AMA, and provide in each case the legal reference (law and relevant article) exempting the IAA and its economic 
activities. 
 RESPONSE  
The IAA which operates economic activity falls under "entrepreneur" under the AMA 
with regard to its economic activity. Therefor e, all economic activities of all IAAs are 
subject to the AMA. 
 
Paragraphs 3.120-121, pages 54-55  
EU question 38 
 
Could Japan please confirm that all six large SOEs listed Table 3.16 and all the government agencies listed in paragraph 3.121 are subject to th e AMA? If not, please indicate which of these WT/TPR/M/310/Add.1 
 
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SOEs and government agencies are exempted from  the scope of the AMA, and provide the legal 
references (law and relevant article) exempting each entity and its economic activities.   RESPONSE 
 
SOE and the government agency which op erate economic activities fall under 
"entrepreneur(s)" under the AMA with regard to  their economic activities. Therefore, all 
economic activities of six large SOEs listed in the Table 3.16 and all government 
agencies listed in paragraph 3.121 are subject to the AMA.  3.3.4 Competition policy  
3.3.4.1 Recent developments 
Paragraph 3.122, page 56  
EU question 39 
 
Could Japan explain the state of play regarding the bill proposing the adoption of the guidelines for 
rescue and restructuring aid?  
 RESPONSE  
The bill was introduced by a member of Diet. The bill was discarded due to the 
dissolution of the House of Representatives.  
EU question 40 
 
The AMA does not recognise the principle of Legal Professional Privilege (LPP) and does not permit 
the presence of a lawyer when individuals are in terviewed concerning suspected infringements of 
the Japanese competition rules. Does Japan have any plans to amend its rules for due process in competition proceedings? If yes, please outline these plans and indicate how they would strengthen firms' rights of defence. 
 
RESPONSE  
No, Japan does not have any plans to amend the AMA. 
 3.3.4.2 Exemptions from prohibition of cartels  
Paragraph 3.124, page 56 
 EU question 41 
 
Could Japan please briefly describe each of the practices exempted from the scope of the AMA 
listed under Heading 2 in Table 3.17? In each case, please also indicate the justification for the exemption.  
 WT/TPR/M/310/Add.1 
 
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 RESPONSE 
Relevant 
ministries and 
agencies Legislation System Summary of practices Justification for 
the exemption 
2. Exemptions under various individual laws (15 laws, 19 systems) 
Financial 
Services Agency Insurance Business 
Act Insurance cartels Concerted business with 
regard to the aviation 
insurance business, the 
nuclear insurance 
business, etc.  Diversification and 
equalization of risk 
(the aviation 
insurance business 
and the nuclear 
insurance business) 
 Act on Non-Life 
Insurance Rating Organization of Japan Exemptions concerning 
compulsory automobile insurance and earthquake insurance Rating the standard rate 
and providing it for the partner. The earthquake 
insurance and the compulsory automobile liability insurance are substantially public insurances and carrying out operation of them on private insurance 
companies. 
Ministry of 
Justice Corporate 
Reorganization Act Reorganization 
company's acquisition 
of its shares Stock acquisition by 
reorganization creditors 
based on the 
reorganization plan To prevent 
obstructions during 
the corporate 
reorganization 
Ministry of 
Finance Act on Securing of 
Liquor Tax and on Liquor Business Associations Rationalization cartels Entering into an agreement 
and regulating sales methods of liquor to promote rationalization of partners' management. To prevent under-
aged drinking and promote recycling of bottle of liquor 
Ministry of 
Education, 
Culture, Sports, 
Science and 
Technology Copyright Act Cartels on fees for 
secondary use of 
commercial 
phonograms Decision of fees for 
secondary use through the 
consultation between the 
association which the 
Commissioner of the 
Agency for Cultural Affairs 
designates and 
broadcasting organization To ensure an 
appropriate and 
smooth payment of 
fees for secondary 
use based on 
neighbour rights  
Ministry of Health, Labour, Welfare Act on 
Coordination and Improvement of Environmental Health Industry Cartels to prevent 
excessive competition Limiting fees when 
partners' taking appropriate sanitary measures is or may be obstructed by excessive competition To ensure 
appropriate sanitary measures and revitalize the partners' management.  
Ministry of 
Agriculture, 
Forestry and 
Fisheries Agricultural 
Cooperatives Act Federations of 
agricultural 
cooperatives; 
Agricultural Association 
Corporation Instruction regarding 
organization, activities, 
and management of 
cooperatives or audit of 
cooperatives; 
Establishment of common 
use facilities or business 
regarding cooperation of 
farm work To ensure legal 
stability (in 
common) 
Ministry of Economy, Trade and Industry Export and Import 
Transaction Act Cartels on export Entering into an agreement 
regarding price or quantity on export trade of certain 
kinds of goods to certain 
regions To prevent trade 
friction 
 Act on the 
Organization of 
Small and 
Medium-Sized 
Enterprise 
Association Joint economic 
undertakings Joint production, joint 
processing, joint sales or 
loan of business funds to 
partner To improve 
productivity of small 
and medium-sized 
enterprise 
 Small and 
Medium-Sized Enterprise Cooperatives Act Federations of small 
business associations Instruction regarding 
organization, activities, and management of cooperatives To ensure legal 
stability WT/TPR/M/310/Add.1 
 
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Relevant 
ministries and 
agencies Legislation System Summary of practices Justification for 
the exemption 
Ministry of 
Land, 
Infrastructure, 
Transport and 
Tourism Marine 
Transportation Act Maritime transportation 
cartels(coastal 
service); maritime 
transportation 
cartels(international)  Entering into an agreement 
on joint management with 
two or more liner shipping 
companies in order to 
ensure passenger transport 
necessary for local 
residents' life; entering 
into a fare agreement with 
other operators in a line 
between ports of Japan 
and ports of other 
countries To ensure passenger 
transport necessary 
for local residents' 
life and improve 
passenger's 
convenience; To 
maintain and ensure 
an efficient and 
stable transport 
network 
 Road 
Transportation Act Transportation cartels Entering into an agreement 
on joint management with 
two or more transportation operators in order to ensure passenger transport necessary for local residents' life To ensure passenger 
transport necessary 
for local residents' life and improve passenger's convenience 
 Civil Aeronautics 
Act Aviation cartels 
(international); 
aviation cartels 
(domestic) Entering into an agreement 
on joint management when 
two or more domestic air 
carriers operate air 
transport services in order 
to ensure passenger 
transport necessary for 
local residents' life in a 
route between points 
within the country; 
entering into a fare 
agreement with other 
careers in a flight between 
points of Japan and points 
of other countries  To ensure passenger 
transport necessary 
for local residents' 
life; To improve 
passenger's 
convenience  
 Coastal Shipping 
Associations Act Maritime transportation 
cartels (coastal service); joint shipping 
businesses Acts of a shipping 
association or its partners based on collective 
agreements or adjustment 
provisions; Joint business regarding coastal shipping business To improve 
productivity of partners (in 
common) 
 Special Measures 
Act on the Proper 
Management and 
Revitalization of 
the Taxi Business 
in Specified and 
Semi-Specified 
Regions Cartels on reduction in 
the number of vehicles Reduction in the number of 
vehicles based on 
Authorized Specified 
Region Plan To improve the 
function of the 
public transportation 
in local communities 
 
EU question 42 
 
The EU understands that for certain exemptions to the AMA, the JFTC must be consulted before a 
measure is adopted. Could Japan explain in more detail the role of the JFTC when assessing cartel exemptions granted under the various individual laws, in particular under the Civil Aeronautics Act 
and under the Marine Transportation Act? 
 RESPONSE 
 
The Minister of Land, Infrastructure, Transpor t and Tourism ("the Minister") shall, when 
it intends to grant approval for antitrust exemption with regard to agreements relating to domestic air transportation under Civil Aeronautics Act and with regard to 
agreements relating to coastal transportation under the Marine Transportation Act, 
consult with the JFTC.  
The role of the JFTC is to assess whethe r the said agreements pertaining to the 
application for approval satisfy th e conditions for the exemption. 
 WT/TPR/M/310/Add.1 
 
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 Specifically, under the Civil Aeronautics Act or under the Marine Transportation Act the 
JFTC examines, i) whether the contents of the agreements in question meet the definition for cartels exemptions, ii) whether the contents of the agreements in question 
meet the requirements for approval (1. the contents of the agreement shall not unfairly 
impair the benefits of users, 2. the co ntents of the agreement shall not unfairly 
discriminatory, 3. the contents of the agreem ent shall not unfairly restrict participation 
and withdrawal, 4. the contents of the agreement shall be kept to the minimum 
necessary for the purpose of  the agreement), iii) whet her the contents of the 
agreements in question apply in the case where unfair trade practices are used or a substantial restraint of competition in part icular field of trade unfairly impair the 
benefits of users. 
 
In addition, the JFTC may, when it finds th at the contents of the agreements approved 
for exemption to the AMA become unconform able to the requirements for approval 
under the Civil Aeronautics Act or under the Marine Transportation Act, call for the 
Minister to order the relevant parties to alte r the contents of the agreement, or revoke 
the approval. 
 
EU questions 43 to 46 
 Could Japan please describe how it ensures transparency for decisions exempting aviation and 
maritime transportations cartels under the Civil Aeronautics Act and the Marine Transportation 
Act? How does Japan safeguard the legitimate interests of stakeholders (e.g. competitors to the cooperating firms)? Are exemption decisions publishe d (in their entirety or in part)? Does Japan 
issue press releases summarising the cartels and the reasons they were exempted? 
 RESPONSE 
 
Under the Civil Aeronautics Act, the MLIT  examines Anti-Trust Immunity (ATI) 
agreements for Joint Venture including influe nces on stakeholders. The Government of 
Japan does not usually issue press releases wh en it gives a variety of permissions under 
laws. Therefore, exemption decisions related to aviation are not published by the MLIT 
as well. However, the Japan Fair Trade Commi ssion (JFTC) makes avai lable to the public 
information about the number of the ATI agreements which have been given 
permissions by the MLIT and then notified to the JFTC. In addition, in the case of 
particular form of joint venture agreements, the JFTC is informally consulted by MLIT 
before the MLIT gives the permission. In th at case, the JFTC informs main competitors 
and stakeholders the summary of the agreements and asks them their opinions. 
 Regarding maritime transport, the MLIT do es not publish the contents of the ATI 
agreements when the MLIT accepts the applic ations of the agreements among shipping 
companies. The MLIT assesses the conformity of the agreements with the requirements 
stipulated in the related maritime regulations,  and if the MLIT recognizes that there is 
no serious concern about their conformity, the MLIT notifies the agreements to the JFTC. 
The number of the ATI agreements notified by MLIT to the JFTC is released on the JFTC's 
website.  
In addition, to ensure the legitimate intere sts of stakeholders, the MLIT provides the 
shippers associations with information on the agreements and asks the associations 
their opinions about whether the agreements may impact on their business.  
Therefore, MLIT recognizes that there are no t any concerns about transparency in both 
aviation and maritime.  
3.3.4.5. Enforcement  
Paragraph 3.127, Table 3.18, page 58  
According to the table, the JFTC has not issued any cease and desist orders in private 
monopolisation cases in the period 2009-2014.  WT/TPR/M/310/Add.1 
 
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EU question 47 
 
Could Japan explain why this is the case? Could Japan please provide more information about its enforcement in private monopolisation cases (e.g. the number of complaints, ex-officio cases and 
investigations)? 
 RESPONSE 
 
The JFTC had not issued any cease and desist  orders in private monopolization cases in 
the period fiscal 2009-2013, but on January 16  2015, the JFTC issued cease and desist 
order against the JA Fukui Prefectural Economic  Federation of Agricu ltural Cooperatives, 
finding that they conducted private mono polization. In the past 10 fiscal years 
(2004-2013), the JFTC issued the legal measur es against Japanese Society for Rights of 
Authors, Composers and Publishers on Febr uary 27 2009, and Intel Kabushiki Kaisha 
(IJKK) on March 8 2005. In addition, the AMA prohibits certain kinds of unilateral 
conducts not only as a private monopolizatio n but as one of the unfair trade practices. 
The JFTC issued cease and desist order agains t Adidas Japan KK (resale price restriction, 
March 2 2012), DeNA Co., Ltd (interferenc e with a competitor's transactions. 
June 9 2011), Johnson & Johnson K ．K (trading on restrictive terms, December 1 2010), 
and QUALCOMM Incorporated(trading on rest rictive terms, September 28 2009), finding 
that they conducted the unfair trade practice. 
 Cease and Desist Order to the JA Fukui Prefec tural Economic Federation of Agricultural 
Cooperatives 
http://www.jftc.go.jp/e n/pressreleases/yearly -2015/January/150116.html . 
Cease and Desist Order against Japanese Soci ety for Rights of Authors, Composers and 
Publishers 
http://www.jftc.go.jp/en/pr essreleases/yearly-2009/ feb/individual-000063.html . 
Recommendation to Intel K.K. 
http://www.jftc.go.jp/en/ pressreleases/yearly_2005/ mar/2005_mar_8.files/2005-
Mar-8.pdf . 
Recommendations to Usen Corperation and Nippon Network Vision Corperation 
http://www.jftc.go.jp/en/ pressreleases/yearly_2004/sep/individual_000283.html .  
Cease and Desist Order against Adidas Japan KK 
http://www.jftc.go.jp/en/pr essreleases/yearly-2012/ma r/individual-000470.html .  
Cease and Desist Order against DeNA Co ．, Ltd 
http://www.jftc.go.jp/en/pr essreleases/yearly-2011 /jun/individual-000427.html .  
Cease and Desist Order against Johnson & Johnson K ．K． 
http://www.jftc.go.jp/en/pr essreleases/yearly-2010/de c/individual-000003.html .  
Cease and Desist Order against QUALCOMM Inc orporated 
http://www.jftc.go.jp/en/pr essreleases/yearly-2009/ sep/individual-000038.html .  
 
EU questions 48 to 51 
 
The EU understands that warnings and cautions are given to firms suspected of having abused 
their superior bargaining power. Could Japan please explain the difference and legal implications of 
the two types of measure? Are JFTC's decisions to  issue warnings and cautions published (in their 
entirety or in part)? Does the JFTC issue press releases when issuing warnings and cautions? Could 
Japan please describe the possibilities for legal redress (appeal) for firms receiving a warning or a 
caution?   RESPONSE 
 
As a result of investigation, the JFTC gives warnings if the JFTC recognizes a suspicious 
conduct without enough evidence to issu e cease and desist order and surcharge 
payment order in order that the suspicious conduct is never done again. Meanwhile, the 
JFTC gives cautions if the JFTC recognizes the conduct which might lead to the violation 
of the AMA without enough evidence to susp ect the illegal conduct in order to prevent 
the entrepreneurs from violating the acts. 
 WT/TPR/M/310/Add.1 
 
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 Recently, the JFTC publishes the decisions to issue warnings and some of the decisions 
to issue cautions as press releases. The numbers of warning and caution cases are aggregated and published in each fiscal year.  
In the AMA, there is no provision for legal redress but if the JFTC gives warnings, the 
JFTC shall follow the preliminar y procedure, which is provided  in rules by the JFTC, in 
the same way as if the JFTC issue cease an d desist order and surc harge payment order. 
(Entrepreneurs can present their  views on the contents of orders notified in advance. In 
order to ensure the decision of fair admini strative measure, they can not only present 
their views, but submit evidence.)  
 
3.3.5. Intellectual Property Rights (IPRs) 
3.3.5.2 Patents  
Paragraph 3.134, page 61 
 
EU questions 52 and 53 
 
Could Japan confirm that the reduced cost of filing  patent applies equally to Japanese and foreign 
SMEs companies? Alternatively, Could Japan descri be the differences between the fees applicable 
to Japanese companies and the ones applicable to foreign ones?   
RESPONSE 
 Fee reduction measures by the Japan Patent Office can be applied to both foreign and 
Japanese SMEs which meet the requirements of these measures. 
 As mentioned above, fee reduction measure by the Japan Patent Office can be applied to 
both foreign and Japanese SMEs which m eet the requirements of this measure. 
 Paragraph 3.137, page  62 
 
EU question 54  
 
Could Japan provide details on the targets set to reduce pendency and reinforce examination 
capacity, as results of outsourcing preliminary prior art searches?  
 RESPONSE 
 
It is necessary to shorten the examination period to grant patent rights for users to make the most use of the patent rights. Therefore, in 2004, Japan set a long-term goal of shortening First Action (FA) pendency fr om 26 months (2004) to 11 months or less 
within 10 years along with another goal of securing 500 fixed-term patent examiners. 
Through these measures and expanding the sc ale of outsourcing preliminary prior art 
searches, the goal of shortening the FA pend ency to 11 months or less was achieved by 
at March, 2014. 
 3.3.5.8 Enforcement 
Paragraph 3.156, page 65 
 The report mentions an „annual Survey Report on Losses Caused by Counterfeiting". It quotes that the 8,081 enterprises covered in the survey re ported losses of about 100 billion Yen due to 
counterfeiting in 2012. 
  EU question 55  
 Could Japan explain the methodology which companies were expected to follow when estimating the damages they suffered? 
 WT/TPR/M/310/Add.1 
 
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RESPONSE 
 "The amount of damage" per right holder is to be calculated by a formula defined as 
follows, in line with the Article 102, paragraph 1 of the Patent Act: 
"(the quantity of articles assigned by the in fringer) × (the amount of profit per unit of 
articles which would have been sold by the right holder)"  
4 Trade Policies in Selected Sectors 
4.1 Agriculture  
4.1.2 Agricultural policies Paragraph 4.19, page 73 
 
Japan has suffered several shortages of butter in the past but also more recently. These shortages seem to occur more and more frequently and are hampering production activities of domestic 
industry such as bakeries. The quota fill for butter and butter oil is consistently below 40% and 
additionally butter is a state traded product.   
EU questions 56 and 57 
 
What does Japan intend to do to increase the quota fill rate for butter taking into consideration the market shortages? Secondly what does Japan intend to do to allow continuous supply of butter to 
domestic industry and also to consumers? 
 RESPONSE 
 
- The Japanese government reallocates unused  quotas in order to improve under-fill 
rates. 
- Butter is mainly imported as a part of stat e trading. In the event of a shortage, the 
government increases butter imports as a pa rt of state trading and this increases 
supply. 
 
Paragraph 4.23, page 74 
 This paragraph describes the Japanese food aid policies. 
 
EU questions 58 and 59 
 
Could Japan provide explanation about its counterpart fund system under food aid. Japan has 
stated that is does not provide food assistance in-kind. However it has clarified that under the counterpart funds system recipient countries obtain funds through monetising products provided by Japan. In the light of this, could Japan clarify to which extent Japan provides products for 
monetisation to recipient countries and would that entails a risk of commercial displacement? 
Could Japan indicate for the latest available calendar/budget year the products and quantities in question and the total amount obtained? 
 
RESPONSE  
Japan provides food assistance in accordan ce with Article 2 of the Food Assistance 
Convention which stipulates "provide food a ssistance in a way that does not adversely 
affect local production, market conditions, marketing structure and commercial trade or 
the price of essential goods for vulnerable populations". 
 
The total quantity of food assistance prov ided by Japan was 1.4 million metric tons 
in 2013. Since counterpart funds *belong to  recipient countries, Japan is not in a 
position to disclose its details. 
 * counterpart funds: Recipient countries obta in a surplus through selling products which 
were purchased by funds provided by Japan.  The surplus, which must be deposited in 
their domestic currencies, is called "the Count erpart Funds" that shall be utilized by the 
recipient countries for their own economic and social development.   WT/TPR/M/310/Add.1 
 
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 Paragraph 4.30, 4.31 and 4.32, page 75 
 Reference is done to the scheme: Direct Pa yment for Environmentally Friendly Farming. 
 
EU questions 60 to 63  
 
Could Japan indicate for the period 2011 to 2013, per year, the total area, number of recipients 
and total amounts paid for Environmental Friendly farming? Can Japan indicate the number of 
hectares per year since 2008 that has received direct payments in hilly and mountainous areas ? 
Could Japan also indicate the amount paid per year for this programme for the years 2008 to 2013? Could Japan indicate for the years 2011 to 2013 the number of hectares benefitting from 
this scheme for flat farming on islands  and other disadvantaged ar eas respectively? 
 RESPONSE 
 
a) Implementation results of Direct Paymen t for Environmentally Friendly Farming is as 
follows: 
 FY2011  FY 2012 FY 2013  
Number of recipients 6,622 12,985 15,241 
The total area (ha) 17,009 41,439 51,114 
Total amounts payment （one thousand yen ） 1,330,912 2,995,591 3,081,932 
* The national government supports a half of the total amount of payment. 
 
b) Status of implementation of direct pa yments for farmers in hilly and mountainous 
areas is as follows: 
Fiscal year 2008  2009  2010  2011 2012 2013  
Number of hectares 664,463 663,775 662,356 677,633 682,404 686,845 
 Number of hectares on isolated 
islands included in above (not 
limited to flat farming)    
12,668 13,592 13,614 
Total payment (million yen) 51,791 51,772 51,794 53,280 53,845 54,086 
Note: Extension of the scheme to flat farming areas in FY2011 resulted in solely covering those areas 
isolated islands. 
4.1.2.3.5 Tobacco  
Paragraphs 4.39 – 4.40, page 76  EU question 64  
 The Japanese Tobacco Tax Law still provides for a lower excise tax for domestically produced so-called "third grade cigarettes" which put imported cigarettes at a competitive disadvantage. 
Japan is planning to abolish gradually these preferential tax rates from 1 April 2016 on, but the 
normal tax will only be applicable from April 2019. Could Japan explain why why a four years transition period is considered as being necessary?  
 
RESPONSE  The "former third class cigarettes" are sold at  lower prices because the applied tax rate 
for those cigarettes is lower than that for ot her cigarettes. Because of the lower prices, 
low-income earners are more likely to smoke former third class cigarettes. If the tax 
rate for those cigarettes is raised by more th an double to the same level of the rate for 
other cigarettes, the prices for former third class cigarettes will rise very sharply. In 
order to mitigate the impact of sudden rise of  prices on the smokers, it is desirable to 
have as much transition period as possible. Taking into account both the large impact of 
sudden rise of tax rate on smokers and reques ts from a foreign tobacco maker to realize 
an equal treatment within a few years, the Government of Japan decided that four-year 
transition period is necessary and appropriate.  
"The Japanese Tobacco Business Law determines  that Japan Tobacco Inc. (JT) needs to 
purchase all domestically grown tobacco. Furthe r, it obliges JT to purchase the tobacco 
leafs at a price fixed by a Leaf Tobacco Advi sory Council which is required to determine WT/TPR/M/310/Add.1 
 
- 211 - 
 
the price of tobacco leaves "with reference to production costs, commodity prices and 
with other economic circumstances, and with the intent of securing the production of 
tobacco leaf ". Japan has notified JT as St ate trading enterprise according to Article 
GATT XVII (G/STR/N/15/JPN). The recent annual reports published by JT show that the 
average purchase price of the domestic toba cco leafs is significantly higher than the 
price for imported tobacco over the last ye ars. Japan did not include any amounts paid 
to Japanese tobacco growers by JT in its reduction commitments for domestic support 
"amber box" measures and thus did not ma ke them subject to reduction commitments 
pursuant to the Agreement on Agriculture.   EU questions 65 and 66 
 Does Japan consider that these payments to domestic tobacco growers are domestic support 
measures? If not, why? Does Japan consider that these payments should be included in its amber 
box measures, notified and made subject to its reduction commitments? Does Japan consider 
abolishing this leaf purchase obligation?"  
RESPONSE 
 Japan does not consider the purchasing of do mestic tobacco leaves by JT as a domestic 
support measure. The purchasing  price of domestic tobacco leaves by JT is determined 
between JT and related tobacco leaf grower s, duly giving commercial considerations. 
There is no plan to revise the provisio ns regarding the leaf-purchasing by JT. 
 
EU questions 67 and 68  
 
Does Japan intend to revise the provision of the law that requires the prior approval by the 
Minister of Finance of the retail list price of tobacco products? Could Japan clarify which are the 
criteria used by Minister of Finance to approve or  disapprove retail prices of tobacco products for 
importers, wholesalers, and retailers of cigarettes?  
RESPONSE 
 Japan does not have an intention to revise the said provision. The Tobacco Business Law 
clarifies the criteria in sub-paragraphs  1 and 2, paragraph 1 of Article 34. 
 The Tobacco Business Law  
Article 34. The Minister of Finance shall, in ca se the application for approval of the retail 
price in Paragraph 1 or 2 of the preceding ar ticle, except for cases falling under any of 
the following items, grant the approval in  Paragraph 1 or 2 of the same article: 
 
(1) If the sale at the retail price under the ap plication concerned is recognized to injure 
the interest of consumers unfairly. (2) If the retail price under the application concerned is recognized to be unreasonably 
low compared with the highest selling price as provided for in Article 9 paragraph 1 
(including the case applied mutatis mutandis in Paragraph 6 of the same article) in the 
case of the Corporation or the import price (price calculated under the provisions of 
Article 4 to Article 4-8 of the Customs Tariff  Law (Law No.54 of 1910) in case of the 
specific sale enterpriser.  
 4.3 Energy 
4.3.1 Features 
Paragraph 4.84, page  
For competitors to enter the Japanese electricity market, the outstanding decision on Japan's 
energy mix is crucial.  
EU question 69 
 
Could Japan give an indication on when it will de cide on the shares of different energy sources in 
its energy mix and whether there is already an indi cation of the different shares of energy sources 
in the energy mix?  WT/TPR/M/310/Add.1 
 
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RESPONSE  Japan is likely to make an announcement soon  regarding the energy mix based on the 
importance of each energy source in the energy supply-demand structure upon 
assessing prospects for the restart of nu clear power plants, the introduction of 
renewable energy based on the feed-in-tari ff program and international discussions on 
global warming, including by the Conferences of the Parties (COP) of the United Nations 
Framework Convention on Climate Change.  EU question 70 
 Could Japan provide the information on the gas market reform?   
RESPONSE 
 The Government of Japan is currently cons idering Gas Market Reform. The objectives 
are (1) securing a stable supply of natura l gas, (2) imposing maximum limits on gas 
price increases, (3) expanding choices fo r consumers and business opportunities, and 
(4) increasing the use of natural gas. On January 21, 2014, a subcommittee established 
by METI compiled a report that indicated the direction of reforms, including steps for the 
full liberalization of the gas market.  
 4.3.2 Electricity 
4.3.2.2 Policy and legislation 
Paragraph 4.89, page 92  
EU questions 71 to 74 
 
Could Japan explain the latest situation of the review of the feed-in-tariff scheme? Could Japan explain who is responsible for the final decision on the restart of nuclear power plants after the 
safety evaluation? Could Japan explain the state of  play of the restart of nuclear power plants? 
Could Japan provide information on the amount of subsidies provided to nuclear hosting municipalities? 
 
RESPONSE  
Q71: 
 While the FIT system has contributed greatly as the driving force behind the push to 
fully exploit renewable energy, problems faci ng the system have also become apparent: 
these include grid capacity limits for renewa ble energy, and the potential for the rapid 
increase in photovoltaic to increase th e cost burden on future generations. 
METI convened a council to tackle these pr oblems and decided to introduce a flexible 
power control system for photovoltaic to expand grid capacity and to promote the 
introduction of renewable energy other than photovoltaic based on their characteristics. 
Concerning mid-to-long term FIT policy, th e METI council will continue discussions 
examining actual progress introducing renewa ble energy and on minimizing necessary 
costs.  Q72: 
 
Electric power companies are resp onsible for the final decision.  
 
Q73: 
  If the Nuclear Regulation Authority (NRA) de termines that nuclear power plants must 
conform to new regulatory requirements, whic h are the most stringent in the world, the 
Government of Japan will respect the judgmen t as it proceeds with the restart of the 
nuclear power plants.  
Presently, 21 units are under review for restart by the NRA.  WT/TPR/M/310/Add.1 
 
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Q74: 
 METI provides subsidies to municipalities ho sting nuclear power plants. The amount was 
96.8 billion yen in FY2014.  
 
4.4 Finance 4.4.1 Features 
Paragraph 4.98, page 93 
 The report refers to the Postal Services Privatisat ion Act of 2012. On that subject, Japan clarified in 
the TPR exercise of 2013 that the revised Postal Se rvice Privatization Act had a provision to ensure 
equivalent conditions of competition between the Japan Post Group and operators offering similar 
services, and that the Government of Japan intend ed to continuously ensure consistency with the 
WTO Agreements and other international agreements. 
 
EU question 75 
 
Could the Japanese authorities give more details on the specific measures taken to ensure the 
equivalent conditions of competition, not only in the area of financial services (banking and insurance) but also in respect of express deliv ery services offered by Japan Post (EMS) in 
competition with private operators. 
 
RESPONSE  
The two financial companies, respectively as a bank under the Banking Act and a life 
insurance company under the Insurance Business Act, have been subject to the same laws and regulations as those applied to other banks and life insurance companies. 
In addition to the Banking Act and the Insurance Business Act, the regulations under the 
Postal Services Privatizatio n Act ("PSPA") are applied to these two companies as "add-
on regulations" in the course of privatization. Under the PSPA, the measures such as the 
requirement for approval of starting a new business have been implemented to ensure 
equal competition with other financial institutions.  
 Upon submission of an application for appr oval of new business from the two financial 
companies, the Financial Services Agency (" FSA") and the Ministry of Internal Affairs 
and Communications ("MIC") give approval for the new business when FSA and MIC 
confirm that the new business will not im pede the equal competition between the 
company and other financial institutions in  accordance with the PSPA. Furthermore, 
even after launching a new bu siness, FSA and MIC may take  the necessary supervisory 
measures in accordance with the PSPA, when it admits that there is a possible violation 
of regulations and dispositions under the PSPA. 
On the other hand, there are no rules as  mentioned above under the PSPA for EMS 
provided by Japan Post.  
EU questions 76 and 77 
 
Could Japan explain any differences in the regulatory regime for Japan Post Insurance compared to 
other insurance undertakings? Do all the provisions of the Insurance Business Law equally apply to 
Japan Post Insurance?   RESPONSE 
 
Japan Post Insurance (hereinafter referred to as "JPI"), as a life insurance company 
under the Insurance Business Act, has been su bject to the same laws and regulations as 
those applied to other life insurance companie s and supervised by the Financial Services 
Agency. In addition to the Insurance Business Act, etc., the regulations under the Postal 
Services Privatization Act are applied to JPI as "add-on regulations" in the course of 
privatization. 
 WT/TPR/M/310/Add.1 
 
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 4.4.2 Banking  
Box 4.2, pages 95-96  Reference is done to the "Measures to ensure compliance with the Basel Committee's Core 
Principles for Effective Banking Supervision" and to the fact that the FSA wil revise the parts of the 
guidelines to ensure compliance with the Basel Committee's Core Principles (BCP). In EU's view, foreign and local banks suffer from a different treatment. Local banks face an annual inspection 
while, foreign banks are subject to the inspection of the following organizations: 1) the Financial 
Services Agency; 2) the Securities & Exchange Surveillance Commission; 3) the Tokyo Stock Exchange; 4) the Japan Securities Dealers Association; 5) the Ministry of Finance and finally 6) the Bank of Japan (BoJ). As a consequence, fore ign banks must observe more expensive and a 
complex regulation than local banks. Foreign banks must therefore devote additional resources to 
fulfill with specific inspection requirements.  
EU question 78  
 
Could Japan provide the details of the reciprocit y test related to the licensing of banks? In 
particular: i) Does the test apply to both branches and subsidiaries or only to foreign banks 
establishing a branch in Japan? ii) Could Japan clarify what "substantially the same treatment" means in this context? Could Japan describe the process leading to determination "that banks are given substantially the same treatment as under the Banking Act"? iii) Are similar tests applied in 
other areas of financial services regulation? 
 RESPONSE 
 
i) The reciprocity test (the Ba nking Act, Article 4.3) applies to branch offices as well as 
subsidiaries of foreign banks. ii) When a fo reign bank seeks to engage in banking in 
Japan, the examination of "substantially the same treatment" is made for confirming the 
non-existence of unequal treatment of Japa nese banks in the jurisdiction where the 
principal business office of the foreign bank is located. iii) As for other areas of financial 
services regulation, the Insurance Busine ss Act and the Financial Instruments and 
Exchange Act do not set out any reciprocity test. 
 4.4.3 Insurance 
Paragraphs 4.104-4.106, pages 97-98; and Box 4.3 
  In EU's view, the current Japanese insurance le gislation does not prevent discrimination between 
the "kyosai" and the private insurance companies.  Among others, not all "kyosai" need a prior 
authorisation from the Financial Service Agency (FSA).  EU question 79  
 Could Japan state the specific legislation governing the activities of the top 5 kyosai kumiai referred to in paragraph 4.104? 
 
RESPONSE  
Please refer to page 18 of the fact book  published by Japan Cooperative Insurance 
Association ( http://www.jcia.or.jp/english/pub/pdf ). 
 
EU questions 80 to 83  
 Could Japan provide the market share of 'kyosai kumiai' separately for the life and non-life insurance market? Could Japan provide information on the top 10 life-insurers as well as 
top 10 non-life insurers, including Japan Post Insu rance and various kyosai kumiai, as regards the 
amount of premium and the annual contribution to Life/Non-Life Insurance Policyholders Protection Corporation of Japan for each of them? Could Japan also explain the differences in the supervision 
and the regulation of Kyosai as compared to ot her providers of insurance services? Have there 
been any measures since 2006 to regulate "unregulated Kyosai"? If yes, how does this regulation compare to the provisions of the Insurance Business Law? WT/TPR/M/310/Add.1 
 
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RESPONSE 
 1) Government of Japan does not have such in formation. For your reference, in FY 2013, 
total Assets of life and non-life insurance companies and "kyosai kumiai" are as follows: 
 
Life insurance: \350.5 trillion. Non-life insurance: \29.4 trillion 
"kyosai kumiai": \59.9 trillion(amount of  major 6,577 associati ons, source: Japan 
Cooperative Insurance Associa tion Incorporated (JCIA)) 
 2) Government of Japan does not have such in formation. For your reference, in FY 2014, 
top 10 life and non-life insurance companies based on premium income are as follows: 
 
(Life) 
Rank Company name Premiums & other income 
（billion yen ） 
1  Japan Post Insurance Co., Ltd 5,911.6 
2  Nippon Life Insurance Company 4,825.5 
3  Meiji Yasuda Life Insurance Company 3,616.2 
4  The Dai-ichi Life Insurance Company, Limited 2,868.0 
5  Sumitomo life insurance company 2,504.2 
6  American Family Life Assurance Company of Columbus 1,675.7 
7  MetLife Insurance K.K 1,654.7 
8  The Gibraltar Life Insurance Co., Ltd. 1,357.8 
9  The Dai-ichi Frontier Life Insurance Co., Ltd 1,266.0 
10  Sony Life Insurance Co., Ltd 960.9 
 
(Non-life) 
Rank company name Net premium income 
（billion yen ） 
1  Tokio Marine & Nichido Fire Insurance Co., Ltd 1,966.3  
2  Sompo Japan Insurance Inc 1,413.8  
3  Mitsui Sumitomo Insurance Company, Limited 1,386.5  
4  Aioi Nissay Dowa Insurance Co., Ltd 1,144.6  
5  NIPPONKOA Insurance Company, Limited 668.3  
6  The Fuji Fire and Marine Insurance Co., Ltd 273.1  
7  The Kyoei Fire and Marine Insurance Co, Ltd 162.9  
8  The Toa Reinsurance Co, Ltd 147.4  
9  Nisshin Fire ＆ Marine Insurance Co., Ltd 137.2  
10  Japan Earthquake Reinsurance Co., Ltd 92.2  
 
3) Kyosai cooperative societies are mutual-aid  organizations established by people in 
the same geographical area or field of wo rk. The members invest their own capital and 
use the insurance services that the organizati on provides. These services form part of a 
broad range of mutual-aid se rvices available to the members (joint ventures, loans, 
welfare services, etc.). Because of their un ique nature they need to be regulated 
separately, and each of them operates within the scope of the law and under the 
supervision of the relevant  government authorities. 
 
In addition, mutual-aid activities being cond ucted by the agricultural cooperative society 
and the consumers' cooperative society, are regulated under the Agricultural 
Cooperatives Act and the Consumer Cooperativ es Act which have provisions equivalent 
to those applied to private insurers, so th at soundness of the business and consumer 
protection are guaranteed by prudent supervis ion such as careful reviews on the method 
for calculating the mutual aid premiums and the liability reserve.   
4) As for "unregulated kyosai" in your question, the amended Insurance Business Law, 
which was amended in 2005 and came into effect on April, 2006, extended the scope to cover the businesses underwriting insuranc e for a specified group of persons, 
establishing the new regulatory category su ch as Small-amount Short-term Insurance 
Providers. WT/TPR/M/310/Add.1 
 
- 216 - 
 
  
 
 Furthermore, since it was di fficult for some operators which conduct kyosai business to 
be applied to the amendment in 2005 immedi ately, the Insurance Business Law was re-
amended in 2010. This re-amendment estab lished another new regulatory category, the 
Authorized Specified Insurance Providers. Under the Authorized Specified Insurance 
Providers, the operators which have been  conducting kyosai business before the 
amendment in 2005 and meeting the certain requirements were allowed to continue their business for the moment under the supervision of their own authorities. 
 
4.5 Telecommunications 4.5.2 Policy and legislation Paragraph 4.115, Page 101 
 
The MIC is the government agency primarily responsible for telecommunications policy and legislation, and for regulating the sector. In its 2013 TPR exercise, Japan already stated that MIC is 
"legally and structurally independent" and "sep arate from, and not accountable to, any telecom 
service supplier".  
EU questions 84 to 86  
 
Could Japan explain the measures it has taken to ensure independence of the regulatory function 
of MIC from the policy setting functions of MIC? Does Japan have any plans to set up a fully 
independent telecom regulator – separate from the legislator? How does MIC monitor, ensure or 
enforce the functional separation at NTT East or NTT West (between retail and wholesale) and how does it monitor access prices?  
 
RESPONSE  
As Japan answered in 2013 TPR, the Ministry  of Internal Affairs and Communications 
(MIC) is the legally and structurally indepe ndent regulatory body. Thus, Japan is not 
planning to reform the governmental structures.  
The regulatory function of MIC in the teleco mmunications sector is conducted in a highly 
transparent and predictable manner in accordan ce with the provisions of related laws 
and regulations (including the Telecommunica tions Business Act, the Radio Act, etc.) 
 
The functional separation, between retail and wholesale is not conducted in NTT East and West, while the functional separati on, between facility and sale has been 
implemented in accordance with Ar ticle 31 paragraph 5 and 6 of the 
Telecommunications Business Act. NTT East an d West shall establish the interconnection 
tariffs for interconnection charge, etc. and shall be authorized by the Minister for 
Internal Affairs and Communications in acco rdance with Article 33 paragraph 2 of the 
Telecommunications Business Act. 
 In its 2013 TPR exercise, Japan informed that a comprehensive study on the effectiveness and 
appropriateness of the functional separation at  NTT East and NTT West was going to be held 
in 2014.  
EU question 87 
 
Could Japan inform if the results of that study are already publicly available, or where and when it 
will be published, and what further steps are planned, if any? 
 
RESPONSE  
With regard to the results of the study on the functional separation between NTT East 
and West, The Information and Communications Council reported as below (18
th Dec. 2014): 
 
"Regarding functional separation etc. betw een NTT East and West, receiving the report 
on the implementation status etc. which refer to the separation between the facility department and the sales department, an d the independence of the monitoring 
department from the facility department, fr om NTT East and West annually, the MIC has WT/TPR/M/310/Add.1 
 
- 217 - 
 
verified the compliance with the regulations, and made the report available to public. In 
that sense, it can be considered that equi valency etc. between NTT East and West, and 
its competitors are ensure d to a certain extent." 
 
Currently, further study on functional separation between NTT East and West is not 
planned.  
Box 4.6 Market structure and regulatory regime for telecommunications sector, 2013 
Page 101, 102   EU question 88  
 Could Japan indicate how many out of the 318 carriers registered with the Minister are foreign enterprises? [Even if formally there may be no distinction in registration formalities between 
foreign and domestic enterprises, a low percentage of foreign players may be an indication of de 
facto market barriers?]  
RESPONSE 
 There is no distinction between foreign and local enterprises on registration procedure 
under the Telecommunications Business Act an d we have no grasp of the number of 
foreign enterprises subject to registration. 
 EU questions 89  
 Could Japan provide figures on the scope of local loop unbundling on the Japanese market, e.g. how many users are currently served via a LLU contract? 
 
RESPONSE  Regarding DSL services, NTT East and West have approximately a 33.2 % share of the 
subscribers, while having a 99.8% share of the lines as of the end of March, 2014. 
Accordingly, in Japan, about 67% of DSL se rvices are supplied through the NTT East and 
West's unbundled metal lines. 
 
WT/TPR/S/310 
 
2.4.3. Japan's Bilateral Activities outside of FTAs 
Paragraph 2.23  "Regarding foreign direct investment, Japan inve sted about ¥27 trillion and the EU invested about 
¥7 trillion in 2013." 
 EU question/remark No 90:  The EU would like to point out that the figures provided by Japan 
regarding onward and outward FDIs between Japan and the EU seem to refer to FDI stocks and 
not 2013 FDI volumes. Could Japan clarify this aspect?  
RESPONSE 
 As the EU pointed out, the figures regarding inward and outward FDIs between the EU and Japan refer to FDI stocks, not to 2013 FDI volumes. 
 
2.5 Investment policy 2.5.1. Program for promoting Japan as an As ian business centre and direct investment 
into Japan 
Paragraph 2.42  
With reference to the "Program for Promoting Japan as an Asian Business Centre and Direct 
Investment into Japan", the authorities stated that they had a site location subsidy for global companies from FY2010 to FY2014 and the total amount of subsidy was ¥4.0 billion."  WT/TPR/M/310/Add.1 
 
- 218 - 
 
  
 
 EU question 91  
 
Could Japan provide the details of the total volu me of investment generated by the programme 
since its inception in December 2011, indicate what the target is for FY2020 and whether the pace 
of investment is in line with the target?  
 RESPONSE 
 
FDI inward stock in Japan rose from 17.5 trillion yen at the end of 2011 to 18.0 trillion yen at the end of 2013. The govern ment does not analyze or estimate what 
fraction of the increase is owed to the government program. 
 
The government sets the target of increa sing FDI inward stock to 35 trillion yen 
by 2020. The government sets no target for shorter period, and there is a time lag 
between when measures are taken and when its outcome materializes. The government 
cannot tell whether it is in line for the goal for the moment.  
4 Japan's Domestic Policies 
4.1 Abenomics Attracting foreign visitors and inward FDI -  Paragraph 4.5 
 
Japan claims to be pursuing change to attract foreign visitors and FDI. In EU's view, at present 
there seems to be little evidence of this, (other than lifting some visa restrictions for tourists). For example, there are a number of restrictions preventing the free movement and employment of 
foreign labour in Japan, e.g. restricting the num ber of foreign doctors, where they can work and 
who they can treat.  
EU question 92 
 
What plans are there to deregulate the market and lower corporate taxation?   
RESPONSE 
 
Regarding deregulation, two plans for impl ementation of regulatory reform were 
decided by the cabinet in 2013 and 2014, which contain about 400 reform items in total. Through the process of compiling these report s, stakeholders, including EBC (European 
Business Council in Japan), were invited to  attend the meetings to express their 
proposals, and many of their proposals were  reflected in the plans. A new plan is 
planned to be decided in June 2015 and any constructive proposals from stakeholders, 
including EBC, will be considered seriously. 
 As respects corporate taxation, the effect ive corporate tax rate, currently at 34.62%, 
will be cut to 32.11% in FY2015 and then to 31.33% in FY2016. 
 
EU question 93  
 
Could Japan describe what are the specific measures or incentives that the Government intends to implement to facilitate doubling inward FDI stocks?  
 
RESPONSE  Japan is conducting activities focused on id entifying and attracting investment projects, 
and implementing the necessary institutional reforms with the Council for Promotion of 
Foreign Direct Investment in Japan as the control tower. Regarding incentives, besides 
the Subsidy Program on Page 22 (Para. 2.25) , the Government of Japan is offering 
following tax incentives and reduction of pa tent fees under the "Act for Promotion of 
Japan as an Asian Business Center", in orde r to attract global enterprises' R&D and 
Regional Headquarters. 
 
1. Corporate tax breaks  20% income deduction for 5 years (This tax incentive will end on 31 March 2015) WT/TPR/M/310/Add.1 
 
- 219 - 
 
2. Income tax breaks  
Deferral of taxation upon exercising st ock options granted by overseas parent 
companies to the time of selling the shares  
3. Reduction of patent fees 
50 % reduction of examination fees and patent  fees for patent inventions (Applicable 
only to SMEs) 
 
Further regulatory reforms in National Strategic Special Zone - Paragraph 4.6 
 The report mentions the six National Strategic Special Zones put in place by the Japanese 
Government in May 2014 to implement ambitious regulatory reforms. 
 EU questions 94 and 95  
 To attract FDI, will the proposed reforms address more than just land regulation? Is Japan envisaging to adopt ambitious regulatory reforms that will apply on the whole territory and not be 
limited to the SSZ?  
 
RESPONSE 
 The Act on National Strategic Special Zones (NSSZ) of 2013 includes regulatory reforms 
in the areas of medical care, employme nt, education, urban regeneration and 
development, agriculture, and utilization of  historic buildings. The examples are as 
follows: i) accelerated assessment procedur es for advanced medical treatment of 
medicines approved in six Western, which ha ve not yet been approved in Japan, in 
specific hospitals or medical centers, ii) exceptional measures on  regulations on the 
number of beds for providing high-standard medical care services, iii) establishing 
Employment Consultation Center which provid es individual consultation service based 
on the "Employment Guidelines"(published in  April 2014), in orde r to support foreign 
companies and ventures business through clar ifying the conditions of employment and 
work, iv) deregulation on the road occupati on for making MICE more attractive and 
promoted, and v) exceptional measures concer ning agricultural production corporations 
so that private companies will enter in agricult ural business. In addition to regulatory 
reforms, tax reliefs and interest subs idies are also introduced in the NSSZ. 
 
The Council on the NSSZ which submits opinio n to the Prime Minister after discussion 
about the evaluations performed by the zone councils, is required to  debate whether the 
regional exceptional measure sh ould be expanded nationwide. 
 
Reform in agricultural sector 
Paragraph 4.9 
 
Japan indicates in its report that with the reform, the government will aim to raise annual exports of Japanese agricultural, forestry and fisher y products and foods, to ¥1 trillion by 2020 and 
thereafter to ¥5 trillion by 2030. 
  EU questions 96 and 97 
 Are export of agricultural and fisheries products expected to contribute equally to this increase of exports? For fisheries products, how will this be achieved, taking into account the current state of fish stocks? 
 
RESPONSE  
Japan formulated the export strategy in 2013. In this strategy, Japa n targets export of 
agricultural products and their processed products to expand to 640 billion yen and 
fisheries products to expand to 350 billio n yen among 1 trillion yen by 2020. Japan has 
not set the target figure for each prod uct to accomplish 5 trillion yen by 2030. WT/TPR/M/310/Add.1 
 
- 220 - 
 
  
 
 Japan considers importance of resource management in the export strategy formulated 
to accomplish 350 billion yen of export valu e by emphasizing on export of fishery 
product whose stock level is high and which is customarily eaten in country of import. 
  
On that condition, Japan supposes to accompli sh the export target by adding high value 
to the products, developing new markets, and so on.  
4.3 Financial reform 
 The report gives a description of the measures put in place to implement the new economic policies designed to end the prolonged deflation as soon as possible and revitalize the Japanese 
economy in an integrated manner. 
 EU Question 98  
 Will Japan lift the restrictions limiting the scope of Financial institutions to deal with foreign customers from Japan and operate branch offices as subsidiaries?  
 
RESPONSE  The government of Japan has committed to hi gh standard for WTO rule in the financial 
services sector such as "the Understandin g on Commitments in Financial Services", 
which includes Cross-border Trade and Ma rket Access commitments, with minimum 
reservations. 
 
4.5 Competition policy Paragraph 4.22 
  
"The JFTC has been taking rigorous legal actions against violations of the AMA. The number of legal cases against such violations amounted to 21 in 2012 and 15 in 2013. (Please refer to the Table 4.1)." 
 
EU Question 99  
 
Could Japan provide details on the three unfair trade practices cases mentioned in table 4.1?  
 RESPONSE 
 
One case in 2013 suggests cease and desist order and surcharge payment order against RALSE Company, Limited. Two cases in 201 4 suggest cease and desist order against 
Adidas Japan KK and cease and desist or der and surcharge payment order against 
EDION Corporation. For more information, pl ease check the press releases as the URL 
below.  
Cease and Desist Order and Surcharge Pa yment Order to RALSE Company, Limited 
http://www.jftc.go.jp/e n/pressreleases/yearly-2013/july/130703.html . 
Cease and Desist Order against Adidas Japan KK 
http://www.jftc.go.jp/en/pr essreleases/yearly-2012/ma r/individual-000470.html . 
Cease and Desist Order and Surcharge Payment Order against EDION Corporation 
http://www.jftc.go.jp/en/pr essreleases/yearly-2012/ feb/individual-000465.html . 
 
Paragraph 4.23 
 "The total amount of surcharge payment orders issued by the JFTC was estimated at 
¥23,971.51 million in 2012 and ¥22,974.91 million in 2013." 
 EU Question 100  
 Does the Japan consider that the level of fines imposed on companies having participated to cartels or bid-rigging have a sufficient deterrent effect on the industry? Does the JFTC intend to review its policy and practices with respect to surcharge payments anytime in the near future?  WT/TPR/M/310/Add.1 
 
- 221 - 
 
RESPONSE 
 The JFTC does not think there is a problem that has to be dealt with immediately about the level of fines at this moment. 
 
The JFTC does not intend to review its po licy and practices with respect to surcharge 
payments in the near future. 
 
4.6 Services-related policies Paragraph 4.29   
The report states that the definition of a pub lic wireless LAN access service was widened in order 
to impose obligations on Telecommunications Carriers to explain conditions of offering services when concluding a contract. 
 
EU Question 101  
 
Could Japan provide more details on what exactly is covered, possibly with a link to the measures? 
 RESPONSE  
In accordance with Article 26 of the Telecommunications Business Act, 
telecommunications carriers, etc. shall explai n terms and conditions on services that 
consumers should at least understand when th ey intend to conclude a contract, etc. 
Japan amended the Regulations for Enforc ement of the Telecommunications Business 
Act to expand the scope of telecommunications services that subject to the obligation of 
explanation, with regard to the public wire less LAN access services that connect mobile 
phones, etc. or the public wireless LAN acce ss services that provide a service through 
the terminal equipment that are not incl uded in terminal telecommunications line 
facilities, by addressing spread of smartpho nes, etc. with wireless LAN functions, and 
diversification of public wireless LAN access services.  WT/TPR/M/310/Add.1 
 
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 19. CHINESE TAIPEI 
Summary 
Page 8 (Para. 2)  
The expansionary monetary and fiscal policy measures adopted since the last review have 
supported Japan's economy but have been insufficient to achieve strong economic growth. Indeed, Japan's real GDP growth is estimated at 0.9% for 2014 (down from 1.5% both in 2012 and 
2013).The authorities recognize that far-reaching structural reforms are necessary to address 
long-standing structural problems and achieve sustainable growth in the future. While some steps have been taken in this regard, more is ne eded including further trade and investment 
liberalization measures so as to encourage private investment, increase productivity, and enhance 
competitiveness. 
 Question(s) 
 1. Does Japan have any plans to further liberalize the services sectors?  2. If so, could Japan please elaborate on these plans and the anticipated timeframes? 
 
RESPONSE  Towards the further liberalization of trade in services, Japan puts an emphasis on 
services negotiations under the Doha Develo pment Agenda including preparation for the 
Post-Bali work. Japan is also actively workin g on negotiations of EPA/FTAs that are 
considered to complement the WTO framework. In this context, as one of the plurilateral 
agreement negotiations, Japan has committed to the Trade in Services Agreement 
(TiSA) negotiation, which started in earn est in the summer of 2013. Throughout the 
negotiation, the members are trying to create an advanced new agreement by 
liberalizing services sectors at a level higher  than GATS and incorporating the results of 
EPA/FTAs.  1. Economic Environment 
1.2 Trade performance and FDI 
1.2.1 Trade in goods and services Page 14 (Para. 1.16) 
 
Balance of payments data indicate that Japan is a net importer of services with a deficit that averaged US$41.5 billion during 2011-13 (Table 1.2). Net outflows occurred in the form of 
payments for foreign travel and trade-related transport. 
 Question(s) 
 
3. What impact is the increase in consumption tax expected to have on Japan's expansionary 
monetary policy regarding the import/export of services?  
RESPONSE 
 Looking at movements in the nominal current account balance on a quarterly basis, the 
current account balance tentatively turned to a deficit in the first quarter of 2014 due to 
an increase in imports reflecting a last-mi nute demand before the consumption tax hike 
in April 2014. In the second quarter of 2014, the current account balance showed a 
surplus again, albeit slightly, mainly due to  a subsequent decline in imports. Since the 
third quarter, the surplus of the current account has tended to expand moderately, 
mainly as a result of the expansion of the surplus of the primary income balance and the 
improvement in the travel balance (exports of services), supported by movements in 
foreign exchange rates. 
 Reference: 
Monthly Report of Recent Economic and Financial Developments (January 2015) 
http://www.boj.or.jp/ mopo/gp_2015/gp1501.pdf.  WT/TPR/M/310/Add.1 
 
- 223 - 
 
4. Since Japan is such a competitive player in the services sector, does it have specific plans to 
stimulate and expand exports of services?  RESPONSE 
 
Towards the further liberalization of trade in services, Japan puts an emphasis on 
services negotiations under the Doha Develo pment Agenda including preparation for the 
Post-Bali work. Japan is also actively workin g on negotiations of EPA/FTAs that are 
considered to complement the WTO framework. In this context, as one of the plurilateral 
agreement negotiations, Japan has committed to the Trade in Services Agreement (TiSA) negotiation, which started in earn est in the summer of 2013. Throughout the 
negotiation, the members are trying to create an advanced new agreement by 
liberalizing services sectors at a level higher  than GATS and incorporating the results of 
EPA/FTAs. 
 
1.2.2 Foreign direct investment Page 16 (Para. 1.17) 
 
The Secretariat's Report indicates that Japan's inward FDI is far below that of other major developed economies, which may be attributed to stringent and complex domestic industry 
regulations, etc. However, it is noted on page 18, paragraphs 1.24 and 1.26, that the Japanese 
government has been conducting structural reforms as one strategy in pursuit of its objectives to 
attract global companies and become a world-class business centre.  
Question(s) 
 
5. Could Japan please elaborate further, showing statistics if available, on how its structural 
reform policies have improved Japan's investment environment for foreign investors to date. 
 RESPONSE  
The Amendments to the Companies Act in Ju ne 2014 urges listed companies to appoint 
outside directors, which promotes transparen cy of businesses. In 2014, Japan enacted 
the Electricity Business Act for expanding re tail competition to the residential sector, 
which will expand choices for customers and business opportunities.  
The rank of Japan in the World Economic Forum's "Global Competitiveness Report" has 
gone up from 9
th in 2013 to 6th in 2014. Among all the factors, improvements in 
institutions, goods market efficiency and fi nancial market development pushed up its 
position.  2. Trade and Investment Regime 
2.2 General framework 
Page 19 (para. 2.1)  
In the Diet, there are several committees responsible for various aspects of trade including the 
committees on: Economy, Trade and Industry; Financial Affairs; Forestry and Fisheries; and Fundamental National Policies. Overall coordination of trade policies rests with the Cabinet and 
responsibility for trade-related legislation with the Cabinet and Diet. In planning and implementing 
a trade policy, the relevant ministry or government  agency prepares a proposal and consults with 
other relevant governmental bodies. They submit their views and comments concerning the proposal. After obtaining approval from all the relevant ministries/agencies, the proposal becomes 
government policy. Regarding drafting of laws and governmental regulations, the relevant ministry 
or agency consults with all government bodies on the contents of a draft, and reflects their comments before the ministry in charge prepares a draft bill or regulation to be approved by the 
Cabinet and, where required, sent to the Diet for debate. There are many laws and regulations 
relating to trade with the principle laws in Table 2.1.  
Question(s) 
 
6. How much time is usually given to the releva nt government ministries or agencies for them 
to respond to the overall coordination of trade policy and the drafting of laws and government 
regulations? WT/TPR/M/310/Add.1 
 
- 224 - 
 
  
 
 RESPONSE 
 Basically, there is no particular time standa rd required for the coordination process, and 
it varies according to respective trade policy measures. In general ， the relevant 
Ministry or Agency could formulate an initia l draft which becomes the basis of the policy 
and it is processed through consultations wi th the relevant Ministries and Agencies. 
 
7. Does the government conduct consultations with the public and industries before laws or government regulations are drafted by the relevant  ministries? If so, please describe the process. 
 
RESPONSE 
 Pursuant to the provisions of the Administ rative Procedure Act, there is a public 
comment procedure, under which administrati ve agencies shall publicly notify in 
advance the proposed orders and s eek comments from the public.  
At the discretion of administrative agenci es, the public comment procedure can also be 
conducted to proposed Acts and the orders wh ich shall not be applied the Administrative 
Procedure Act.   8. In the decision-making process on trade polic y, are Global Value Chain (GVC) factors taken 
into consideration (e.g. situations in which GVCs may influence a trade policy)? 
 RESPONSE 
 
Certainly there are some cases that Global  Value Chain (GVC) factors are taken into 
consideration in the decision-making proc ess of a trade policy, depending on the 
contents of the policy and its potential impact. 
 2.3 Trade agreements and arrangements  2.3.2 Regional and preferential agreements 
Page 21 (Para. 2.9) 
 Current policy for negotiating Economic Partnership Agreements (EPAs) is based on the Japan 
Revitalization Strategy, decided by Cabinet in 2013 and, before that, the Basic Policy on 
Comprehensive Economic Partnerships of 2010. Under the Strategy, "the government will raise FTA ratio from current 19% to 70% by 2018, by promoting economic partnership as a basis of 
global economic activities". The FTA ratio is defi ned as the percentage of the volume of trade to 
which FTAs (signed or in force) are applied in total trade volume of Japan. The Strategy confirms that work on several EPAs will proceed concurrently (including the Trans-Pacific Partnership (TPP), the Regional Comprehensive Economic Partnership (RCEP), the Japan-China-Republic of Korea 
FTA, and the Japan-EU EPA).  
 Question(s) 
 9. Has Japan formulated a work agenda/roadmap for launching and signing FTAs/ECAs?  
RESPONSE 
 The Japan Revitalization Strategy decided by the Cabinet in 2013 and revised in 2014 
states its goal to increase FTA ratio fr om 19% (2012) to 70% by 2018. Under this 
Strategy, Japan continues to work simultan eously, strategically and swiftly on the 
existing 8 EPA/FTAs negotiations includ ing the Trans-Pacific Partnership (TPP). 
 
10. Could Japan please describe the process it uses for screening prospective FTA/ECA partners? 
 RESPONSE 
 
In choosing an EPA/FTA negotiation part ner, Japan comprehensively takes into 
consideration relevant factors including the progress of existing negotiations of other 
EPA/FTAs, economic and diplomatic viewpoints , and situations of a possible candidate of 
an EPA/FTA negotiation partner. WT/TPR/M/310/Add.1 
 
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Page 21 (Para. 2.10) 
 The Secretariat's Report points out that Japan has tended to exclude a variety of agricultural and related products in regional and preferential agreements. 
 
The Japan-Australia EPA (JAEPA) would appear to demonstrate Japan's determination to open up its market in stages to Australia on some lines of agricultural and related products. 
 
Question(s) 
 11. Have Japan's authorities shifted policy towards expanding the range of tariff line 
liberalization as far as agricultural products are concerned? 
 RESPONSE 
 
Japan is working on EPA/FTAs negotiations with a view to realizing agreements, which 
contribute to its national interests and prof it Japan as a whole, while considering its 
sensitivity on agricultural products. 
 12. What benefits does Japan expect the JAEPA to bring to Japan?  
RESPONSE 
 It is expected that the Japan-Australia Economic Partnership Agreement (JAEPA) will 
help ensure the competitiveness of Japanese  corporations in the Australian market, and 
strengthen stable supply of mineral resou rces and food to Japan. The JAEPA has a 
Chapter of Food Supply (Chapter 7) for the first time for Japan, as well as a Chapter of 
Energy and Mineral Resources (Chapter 8), fo r the purpose of securing stable supply of 
food, energy and mineral resources.  2.4 Investment regime 
Pages 23 -24 (Paras. 2.18-2.27 + Tables 2.3&2.4) 
 Question(s) 
 13. There seems to be no reference to the outward-investment policy in the Report. Are any relevant strategic plans or policies to promote and encourage outward investment currently being 
actively developed or considered by Japan's authorities? 
 RESPONSE  
The Government of Japan facilitates outwar d investment by concluding International 
Investment Agreements (IIAs) and Investment Chapters of EPA/FTAs ．In addition, 
Ministry of Land, Infrastructure, Transp ort and Tourism (MLIT) established a new 
government funded agency "Japan Overseas Infrastructure Investment Corporation for 
Transport & Urban Developm ent (JOIN)" to promote PPP infrastructure projects 
conducted abroad in 2014. JOIN will encourage Japanese firms to invest in such projects 
by making joint investment with them.  3. Trade Policies and Practices by Measure 
3.2  Measures directly affecting exports 
3.2.3 Export prohibitions, restrictions, and licensing 
Page 44 (Paras 3.77 & 3.78) 
 
The Secretariat Report mentions the various products and areas subject to some form of export prohibition, restriction and licensing by Japan. The Foreign Exchange and Foreign Trade Control 
Act provides the legal basis for applying export controls, while product lists and detailed 
operational guidelines are found in secondary legislation, including Cabinet orders, Ministerial orders, etc.  WT/TPR/M/310/Add.1 
 
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 Question(s) 
 
14. Japan is known as being an environmentally-friendly country. It is also a key exporter of chemicals, for use in a variety of different fields. Could Japan please elaborate further on the 
controls currently applied to chemicals, including export prohibitions and restrictions, and any 
plans it may have for further controls in the near future.  
RESPONSE 
 Based on the Foreign Exchange and Foreign Tr ade Law, Japan has been enforcing export 
restrictions on the chemical substances liste d in international agreements such as the 
Rotterdam Convention and the Stockholm Convention or the items listed in the 
international export control regimes. Wh en a chemical is newly listed in the 
international agreements or regimes, Japane se export restriction is applied to the 
chemical accordingly. 
 Export approvals are given to applicants if applications meet the requirements set under 
the above international rules. Once Japan be comes a party of the Minamata Convention 
on Mercury and the convention entries into force, the Japanese government will take 
additional measures on export prohibition and/or restrictions in order to meet the 
requirements under the convention. 
 
3.3.5 Intellectual property rights (IPR) 3.3.5.7 Copyright 
Page 65 (Para. 3.155) 
 In 2012, the Copyright Act was amended on the in cidental use of copyright works to strengthen 
the protection against illegally downloading music or film files, including criminal penalties. 
In 2012, the Beijing Treaty on Audiovisual Performa nces was adopted to reinforce the protection of 
the performers' rights. To accede to the Beijing Tr eaty and to clarify that not only books published 
in paper but also electronic books are covered by  the right of publication, the Copyright Act was 
amended in 2014. This amendment will enter into force in 2015. 
 Question(s) 
 15. To our knowledge, Japan's Copyright Act does not currently provide the same protection to "performances fixed in audiovisual fixation" as required by the Beijing Treaty. (The Beijing Treaty 
grants those performers the "Right of Reproduction", the "Right of Making Fixed Performances 
Available" and the "Right of Broadcasting and Co mmunication to the Public", while Japan's current 
Copyright Act, Articles 91(2), 92 and 92bis relating to "the performances incorporated in cinemagraphic works with the authorization except incorporated in sound recordings", does not 
grant the same rights).  
 Could Japan please explain why it makes amendments to its Copyright Act in phases, and could 
Japan also elaborate further on its future plans in this respect?  
 RESPONSE 
 
Japan acceded to the Beijing Treaty on Au diovisual Performances in 2014, without law 
amendment on the exclusive rights of performers, as Contracting Parties of the Treaty can determine by their national laws how to regulate the exclusive rights once a 
performer has consented to fixation of his or  her performance in an audiovisual fixation. 
Japan's Copyright Act is consistent with the provision of the Treaty, as provisions of Japan's Copyright Act which are mentioned in  the question refers to cases where a 
performer has consented to fixation of his or  her performance in an  audiovisual fixation, 
as stated in those provisions ("the performa nces incorporated in cinematographic works 
with the authorization"). 
 WT/TPR/M/310/Add.1 
 
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4. Trade Policies in Selected Sectors 
4.5 Telecommunications Pages 100-102 (Paras 111-116)  
According to Japan's Ministry of Internal Affairs and Communications (MIC), the information and 
communications technology (ICT) market was worth ¥82.7 trillion in 2011, accounting for 9% of the total market for all industries and employing 3.897 million people, or 6.9% of total number of 
persons employed in Japan. 
 Question(s): 
 
16. Could Japan please provide the equivalent  data showing the most recent status and 
development of the ICT market (including mobile  phones, fixed telephones, the Internet, mobile 
broadband, and fixed broadband) for the years 2011-2014?  
 
RESPONSE  
The ICT industry's market size in 2011 was 82.7 trillion yen, accounting for 9% of all 
industries, and it employed 3.897 million peop le, accounting for 6.9% of all industries. 
Its market size in 2012 was 81.8 trillion yen (d own 1.1% from the previous year), and it 
employed 3.968 million people (up 1.8% from the previous year). The data of 2013 is 
under survey. 
 Part II: Government Report (WT/TPR/G/310) 
 2. Trade and Investment Policy  2.3 FTA/EPAS 
Page 6 (Para. 2.14, Table 2.1) 
 Table 2.1 shows that there are currently ten Ec onomic Partnership Agreements (EPAs) being 
negotiated, of which eight made headway in 2014. 
 
Question(s) 
 
1. Are any of the EPAs scheduled to be concluded in 2015? 
2. Can we ascertain Japan's current approach to the TPP negotiations from the outcomes of its 
EPAs concluded with Australia and Canada since both of these countries are participants in the TPP 
negotiations? 
3. Does Japan consider that the completion of bilateral EPAs will be helpful in progressing current negotiations on regional free trade agreements, such as the TPP and the RCEP?  
RESPONSE 
 1. As for the Japan-EU EPA, Japan will fu rther accelerate the negotiations toward 
achieving a comprehensive and high-level EPA,  aiming to reach agreement in principle 
during this year, which was confirmed at the Japan-EU Summit Meeting in November 
last year. 
 
And also, Japan vigorously promotes negotiatio ns of RCEP toward achieving the goal of 
concluding it by the end of 2015, and rea lizing a comprehensive and high-level EPA, 
which was reconfirmed in the Second  RCEP Ministerial Meeting in 2014. 
 
2. The government of Japan will continue  its maximum efforts in concluding TPP 
negotiations with all TPP members as soon as possible. Japan-Australia EPA (JAEPA) 
entered into force in January  2015. Japan believes that both JAEPA and TPP strengthen 
economic relations and promote rule-making in  trade and investment in the Asia-Pacific 
region. We expect that conclusion of JAEP A will contribute to accelerate economic 
partnership in the region including TPP. 
 Japan-Canada EPA is still under negotiation.  WT/TPR/M/310/Add.1 
 
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 3. Japan continues to work simultaneously, strategically and swiftly on the existing 
8 EPA/FTAs negotiations including the Tran s-Pacific Partnership (TPP). Japan hopes for 
the dynamism of stimulating and revi talizing each economic partnership. 
 
2.5 Investment policy 
Page 11 (Para. 2.42)  
The Report by the Government of Japan mentions that "Japan has been implementing the 
'Program for Promoting Japan as an Asian Business Centre and Direct Investment into Japan'. Location subsidies, tax incentives and reduced pa tent fees for R&D sites are being offered under 
the programme. The authorities stated that they had a site location subsidy for global companies 
from FY2010 to FY2014 and the total amount of subsidy was ¥4.0 billion."  
By contrast, the Report by the WTO Secretariat, in Paragraph 1.17 under Foreign Direct 
Investment, states that "Until recently, the government did not consider attracting FDI a high 
priority, while the local business community in general considered investment by large foreign 
companies as a threat."  
Question(s) 
 
4. Could Japan please comment on the apparent ly conflicting messages in the two Reports? 
 
RESPONSE 
 The Government of Japan has consistently prom oted inward direct investment especially 
since it set up the Japan Investment Council in 1994. 
 5. It would be appreciated if Japan could please advise foreign investors on how best to deal 
with the possible negative attitude of local government that they may encounter, even in 
circumstances where the 'Program for Promoting Japan as an Asian Business Centre and Direct investment into Japan' applies?   
RESPONSE 
 JETRO (Japan External Trade Organization) has 'Invest Japan Hotline' which provides 
consultation services regarding investment in Japan. If foreign investors consider 
investing in Japan, please feel free to contact JETRO.  
4. Japan's Domestic Policies 
4.1 Abenomics Page 14 (Para. 4.3)  
Under the current economic situation, the consumption tax increase from 8% to 10% scheduled in 
October 2015 will be postponed for 18months until April 2017 in order to ensure that Abenomics succeeds in overcoming deflation and enhancing economic growth. 
 
Question(s) 
 
6. What criteria have been set by Japan's authorities to determine whether or not Abenomics 
succeeds in overcoming deflation and enhancing economic growth?  RESPONSE 
 
The second Abe Cabinet aims to break away fr om persistent deflation at the earliest and 
to revitalize the Japanese economy. For th is purpose, the government has advanced 
"three-arrows" strategy called "Abenomics", co nsisting of aggressive monetary policy, 
flexible fiscal policy, and the growth strate gy that promotes private investment in an 
integrated manner, with a view to achievin g economic growth of approximately 3% in 
nominal terms and approximately 2% in real  terms on average during the period of 
FY2013-FY2022.   7. Is there any possibility of Japan's authoritie s postponing the re-scheduled tax increase even 
further if deflation and enhanced economic growth remain unresolved in 2017?  WT/TPR/M/310/Add.1 
 
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RESPONSE 
 The Government of Japan decided that the Ap ril 2017 consumption tax hike from 8% to 
10% will be implemented certainly without any provisos for decisions based on the 
economic climate, because it is necessary to take responsibility to pass down a social 
security system to the next generation an d to secure trust of the market and the 
international community. 
 
Given the Government's resolve to realize an economy that allows for the raising the consumption tax rate, the Government of Ja pan will exercise all possible measures to 
effectively manage the economy.  
 
Promoting active social participation by women Page 15 (Paras 4.7 & 4.8) 
 
The Report states that the government will take certain measures in order to reduce the number of women who leave the workforce due to childbirth/c hildrearing and to increase the percentage of 
women in leadership positions. 
 Question(s) 
 
8. Could the Japan government please describe in more detail how it manages to assist women 
in achieving a satisfactory work-life balance and at  the same time to raise the female labour force 
participation rate? 
 
RESPONSE  
The government of Japan is going to submit a bill titled "the Act of Facilitation of 
Women's Active Roles in the Workplace" to current Diet session. This bill consists of 
obligation of employers to formulate an action  plan for the active participation of women 
employees and obligation of employers to  publicize information regarding women 
employees' participation, etc. 
 The government of Japan is making further effort towards appropriate implementation 
of the Childcare and Family Care Leave Law, and to encourage workers to use the 
system designed for standing together  of both work and child/family care. 
 
The government of Japan is promoting the reconsideration of working condition based 
on the Act for Measures to Support the De velopment of the Next-Generation Children. 
 4.4 Agricultural reform 
Page 17 (Para. 4.18) 
 The Japan government's programme of agricultural reform and the "Plan for Creating Dynamism 
through Agriculture, Forestry, and Fisheries and Local Communities" is described in some detail in 
the Government Report.  
Question(s) 
 
9. We know that Japan has been very active  in signing bilateral and regional free trade 
agreements with its trade partners in recent years. Could Japan please elaborate further on how 
its economic integration activities help to advance its domestic agricultural reform and improve the 
overall environment?  
RESPONSE 
 Japan is working on EPA/FTAs negotiations with a view to realizing agreements which 
contribute to its national interests and prof it Japan as a whole, while considering its 
sensitivity on agricultural products.  WT/TPR/M/310/Add.1 
 
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 Japanese agriculture and rural areas face pi les of challenges including a rapidly aging 
population of farmers. Japan undertakes agri cultural reforms steadily so as to make 
Japanese agriculture to be the growing in dustry that would attract young people. 
 
ADDITIONAL QUESTION(S) 
 1. Could Japan elaborate on what the new measures are adopted for equity crowdfunding? 
What have been the major achievements so far, including how many cases and how much fund 
have been successfully raised from equity crowd funding??  RESPONSE 
 
In order to promote the use of equity crowdfunding, Japan amended the Financial 
Instruments and Exchange Act on May 23, 2014, which relaxed the entry requirements 
of Financial Instruments Business Operat ors handling equity crowdfunding under a 
certain amount. Specifically, regarding th e Financial Instruments Business Operators 
handling equity under a certain amount, the am ended act relaxed the regulation of other 
business, etc., and decreased the minimum ca pital requirements for registration(from 
50 million yen to 10 million yen). To preven t fraudulent behaviour, the amended act 
requires crowdfunding platform operators to  acknowledge the feasibility of the venture 
business's project and to provide informatio n of issuers, etc., appropriately on the 
website. 
 The amendment shall come into effect in May 2015, thus the major achievements of the 
amendments will come out after that. 
 ADDITIONAL QUESTION(S) 
 2. What are the large exposure rules pursuant  to international standards expected to be 
revised? Will the rules apply to both local and foreign branches?  
RESPONSE 
 Since there were some differences between Ja panese regulations and the international 
standards (" The Basel Core Principles") on the large exposure rules, the FSA has 
amended the Bank Act pursuant to international standards as follows:  
 Extending the scope of credit exposure s; Inter-bank transactions, commitment 
lines, etc. are included within the scope of regulations. 
  Lowering the limit on the amount of cr edit exposures to a group of connected 
counterparties from 40% to 25%. 
  Adding the economic interdependence (effe ctive control basis) to the factors on 
the scope of a group of connected count erparties, besides the control through 
voting rights. 
 
The above amendments shall apply only to Ja panese banks and subsidiaries of foreign 
banks, not branches of foreign banks.  ADDITIONAL QUESTION(S) 
3. What are the conditions set by rules that enable banks to hold a total of 100% of voting 
rights in order to facilitate a smooth turnaround of business companies?  
RESPONSE  In the case of DES and turnaround of bu siness companies under certain conditions, 
banks are allowed to hold 100% of the voting rights in a business company for 3 years 
(for 5 years in SMEs). Besides, through sp ecialized investment subsidiaries, banks are 
able to hold 100% of the voting rights in a certain venture company for 15 years, 100% 
in a certain business company under restructuring for 10 years, and the ratio to the WT/TPR/M/310/Add.1 
 
- 231 - 
 
extent that full consolidation method is no t applied in a business company participating 
in revitalization of the entire region for 10 years.   ADDITIONAL QUESTION(S) 
 4. What are the main content of the Act on Spec ial Measures for Reorganization, in addition to 
the extension of depositor's protection to foreign bank branches? What is its impact on? 
 
RESPONSE  The Act on Special Measures for Reorganization  stipulates reorganization proceedings of 
cooperative financial institutions and mu tual companies, which are associations 
established for the purpose of conducting insurance business except stock companies, 
as well as the exception of bankruptcy pr oceedings of financial institutions. This 
amendment covers only the part of the except ion of bankruptcy proc eedings of financial 
institutions and has added such financial instit utions as branches of foreign banks, bank 
holding companies and financial service providers to the ones for which financial 
regulatory authorities can file a petition  to proceed bankruptcy. This amendment 
enables the financial regulatory authoritie s to promptly respond to bankruptcy of 
financial institutions in order to protect depositors and customers. 
 
ADDITIONAL QUESTION(S) 
 5. In view of enormous change in the busi ness environment, The Insurance Business Act was 
amended and enacted in 2014. Could Japan elaborate the specific provisions, legislative 
background and intent of the amendment?  
RESPONSE 
 The legislative background to amend the Insu rance Business Act is an enormous change 
in the business environment. The purposes of th is amendment, as stated in the Japanese 
government report, are mainly to "assure th e reliability of insurance" and to "develop 
the insurance market."   
The contents of specific provisions regard ing to "assure the reliability of insurance" 
include (1) the introduction of requirements for insurance companies to understand the client's intentions accurately and to prov ide necessary information for the decision-
making of clients in case of insurance solicitation and (2) the introduction of 
requirements for an insurance agent to establish an appropriate governance structure. On the other hand, the contents of specif ic provisions regarding to "develop the 
insurance market" include (1) in the case of insurance companies' acquiring foreign 
financial institutions, they are allowed to ho ld their subsidiaries conducting businesses 
prohibited under the Act for 5 years, (2) removing the approval requirements for insurance brokers to deal with long-term insu rance contracts as an intermediary, (3) as 
for the transfer of insurance contracts when  branches of foreign insurance companies 
are converted into locally-incorporated company,  it is allowed to conduct public notice 
instead of notification to each of the polic y holder of transferred insurance contracts 
under certain conditions, (4) adding the elec tronic methods to distribute documents of 
investment reports such as uploading them on websites for the policy holder, etc.  WT/TPR/M/310/Add.1 
 
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 20. GUATEMALA 
1. En el gráfico 1.1 b) se indica que las im portaciones japonesas de productos agropecuarios 
disminuyeron entre 2011 y 2013, del 11.2% al 10.3% respectivamente. ¿Cuáles fueron las principales causas y qué productos agrícolas tuvieron una mayor reducción en las importaciones de 
Japón? 
 Figure 1.1 b) indicates that Japanese imports of agricultural products declined between 2011 and 
2013, from 11.2% to 10.3% respectively. What we re the main causes and what agricultural 
products underwent a greater reduction in imports from Japan?  RESPONSE 
 
According to the trade statistics aggregated by Ministry of Agriculture, Forestry and Fisheries, the import value of  "agricultural products" increa sed from \5.6 trillion in 2011 
to \6.2 trillion in 2013. 
 2. En el párrafo 1.18 se abordan cuestiones relativas a la inversión Extranjera Directa. Se 
indica que Japón busca duplicar el importe de la IED de empresas extranjeras, hasta llegar a 
35 billones de yenes en 2020. ¿Cuáles son los principales incentivos fiscales que promoverán?  In paragraph 1.18 issues related to Direct Foreign Investment are addressed. It is indicated that 
Japan aims to double the amount of FDI from foreign companies, to reach 35 trillion yen in 2020. 
What are the main tax incentives that will be promoted?  
RESPONSE 
 Concrete measures to promote FDI from fo reign companies are now under consideration 
by the Government. 
 3. En el párrafo 2.9 se especifica que la política comercial de Japón que rige la negociación de acuerdos de asociación económica se basa en la Estrategia de revitalización del Japón, adoptada 
por el Consejo de Ministros en 2013. De conformi dad con esa estrategia, "el gobierno aumentará 
la proporción de acuerdos de libre comercio del 19% actual al 70% en 2018." ¿Cuáles son los criterios de selección de futuros socios comerciales que está aplicando Japón?  
 
Paragraph 2.9 specifies that Japan's trade po licy governing the negotiation of economic 
Agreements is based on the revitalization of Ja pan's Strategy, adopted by the Council of Ministers 
in 2013. Under this strategy, "the government will increase the proportion of free trade 
agreements from 19% today to 70% in 2018." What are the selection criteria of futures trading 
partners that Japan is applying?  
RESPONSE 
 In choosing an EPA/FTA negotiation part ner, Japan comprehensively takes into 
consideration relevant factors including th e progress of existing negotiations of 
EPA/FTAs, economic and diplomatic viewpoints , and situations of a possible candidate of 
an EPA/FTA negotiation partner. 
 
4. En el párrafo 3.25 se especifica sobre los contingentes y el método de asignación de los contingentes. ¿Nos puede decir cuál es el procedimiento de asignación de contingentes que utilizan, y los requisitos de asignación que solicitan? 
 
In paragraph 3.25 quotas and the method of alloca tion of quotas are specified. Can you say what 
is the procedure for allocating quotas used and the allocation requirements requested? 
 
RESPONSE  
Importers apply to METI with specified documents during the application period 
designated in the import notices. METI re views these applications and issues quota 
allocations to the applicants.  WT/TPR/M/310/Add.1 
 
- 233 - 
 
The import notices and other relevant info rmation can be found on the METI website 
below (in Japanese only). http://www.meti.go.jp/policy/ external_economy/trade_con trol/boekikanri/import/wa
riate/suisanbutsuhappyo.htm. 
 
5. ¿Existe alguna página web que reúna el contenido de las leyes relacionadas con las MSF y con los OTC (como mínimo las leyes mencionadas en el cuadro 3.5)? 
 
Is there a website that brings together the content of the laws relating to MSF and OTC (at least the laws mentioned in Table 3.5)?  
RESPONSE 
 Information on the laws listed in Table 3.5 or SPS measures under these laws are 
available at following websites. 
 Food Sanitation Act 
http://www.mhlw.go.jp/english/polic y/health-medical/food/index.html.  
Act on Domestic Animal Infectious Diseases Control 
http://www.maff.go.jp/aqs/english/index.html.  
Act on Standardization and Proper Labeling of Agricultural and Forestry Products 
http://www.maff.go.j p/e/jas/law.html.  
Plant Protection Act 
http://www.pps.go.jp/english/index.html.  
Act Concerning Safety Assurance and Quality Improvement of Feed 
http://www.famic.go.jp/ffis/feed /r_safety/r_feeds_safety.html.  
Food Safety Basic Act 
http://www.japaneselawtranslation.go. jp/law/detail/?id= 1839&vm=04&re=01.  
 
6. En el párrafo 4.1 y el cuadro 4.1 se observa que la agricultura representa una porción pequeña del PIB y que ésta ha mostrado una di sminución progresiva. ¿Prevén las autoridades 
implementar alguna medida para evitar esta diminución? 
 Paragraph 4.1 and Table 4.1 shows that agricult ure accounts for a small portion of GDP and has 
shown a steady decline. Do you expect the author ities to implement any measures to prevent this 
decline?  
RESPONSE 
 We do not have any target of preventing the decline.  
7. En el párrafo 4.11 se hace referencia al plan revisado de política agrícola, en el que se 
trazan como objetivos, entre otros, la mejora en las cadenas de valor, la reducción de los costos, el fomento de la reforma estructural y el aumento de la productividad. ¿Por medio de qué acciones 
concretas se prevé mejorar las cadenas de valor, reducir los costos y aumentar la productividad? 
 In paragraph 4.11 reference is made to revised agri cultural policy, which plot as objectives, among 
others, improving the value chains, reducing costs, promoting structural reform and increasing 
productivity. Through what specific actions is it expected to improve the value chains, reduce costs and increase productivity?  
RESPONSE 
 Japan utilizes, for example, an investment f und (A-FIVE) to financ ially support primary 
producers who are willing to diversify their businesses and a Geographical Indication 
(GI) Protection scheme for establishing food value chains connecting producers and 
consumers. The Government of Japan also ma kes use of regional government-supported 
institutions which promote farmland conso lidation for reducing costs and increasing 
productivity.  8. En el párrafo 4.13 hace referencia al plan de acción para proteger infraestructuras frente a 
catástrofes naturales y accidentes nucleares. En este sentido, para mejorar la viabilidad del sector WT/TPR/M/310/Add.1 
 
- 234 - 
 
  
 
 agrícola y la productividad se establecen como objetivos, entre otros, el proporcionar una red de 
seguridad social a los productores agrícolas. ¿Cómo funcionaría esta red y qué mecanismo concreto se tiene en mente llevar a cabo para desarrollarla?  
Paragraph 4.13 refers to the plan of action to protect infrastructure against natural disasters and 
nuclear accidents. In this sense, to improve the viability of agriculture sector and productivity, 
among others, providing a social safety net to farmers is set as an objective. How would this 
network function and what specific mechanism is being considered to develop it? 
 RESPONSE  
Japan does not have any system for providing a social safety net to farmers in order to 
improve the production capability of agri culture sector and productivity which is 
mentioned in the secretariat report. 
9. En el párrafo 4.25 se indica que las políticas de ayuda interna a la agricultura del Japón han 
mostrado una evolución desde hace algún tiempo, pero las medidas relativas al acceso a los 
mercados únicamente han mostrado ligeros camb ios. ¿A qué razón se debe que las medidas 
relativas al acceso a los mercados no hayan mostrado una evolución similar a las políticas de ayuda interna a la agricultura? 
Paragraph 4.25 states that the policies of domestic support for agriculture in Japan have shown a 
trend for some time, but the measures related to access to markets have shown only slight changes. Why is it that the measures relating to market access have not shown similar progress to 
those of domestic support for agriculture? 
RESPONSE 
 
Regarding market access, Japan sets an appropriate tariff rate on each product 
considering the situation of domestic indust ries, in a manner consistent with the WTO 
agreement. WT/TPR/M/310/Add.1 
 
- 235 - 
 
21. ASEAN 
Report by Japan – WT/TPR/G/310 
 
1) Pg. 18, Section 1 Sub-section 1.3 Paragraph 1.25 
 
ASEAN notes that Japan has undertaken a few structur al reforms, in particular the introduction of 
the "Revised Japan Revitalization Strategy".  
 
Can Japan provide additional or supplemen tary information on the Revitalization 
strategy that has mentioned?   
RESPONSE 
 The government of Japan gives information on "Revised Japan Revitalization Strategy" 
on the website. Please refer to the following URL.  
 
 "Revision of Japan Revitalization Strategy ～10 Key Reforms ～" 
http://www.kantei.go.jp/jp/singi/keizais aisei/pdf/10challenge02shousaiEN.pdf.  
 
 "Japan Revitalization Strategy ~Main Achievements to Date and Further 
Reforms~" 
http://www.kantei.go.jp/jp/singi/kei zaisaisei/pdf/seika02shousaiEN.pdf.  
 
 "Abenomics: We Are Accelerating the Im plementation of Our Committed Reforms 
~Highlights of the Growth Strategy to date  and measures for accelerating reforms~" 
http://www.kantei.go.jp/jp/singi/kei zaisaisei/pdf/kaikakudankouEN.pdf. 
 WT/TPR/M/310/Add.1 
 
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 22. BRAZIL 
Part I: Questions - Secretariat Report WT/TPR/S/310 
 
1. Economic Environment 
 
Page 17 (Para. 1.22)  
Since December 2011, Japan has been implementing the "Program for Promoting Japan as an 
Asian Business Centre and Direct Investment into Japan". Location subsidies, tax incentives, and 
reduced patent fees for R&D sites are being offere d in the context of this program. According to 
the authorities, from FY2010 to FY2014 the tota l subsidy under this program amounted to 
¥4 billion. 
 Question 
 1. Does the program include any investment facilitation measures?  
RESPONSE 
 Yes, it does. For example, it includes a new framework for investment support for 
foreign businesses utilizing the Invest Japan Business Support Cent er (IBSC) at the 
Japan External Trade Organization (JETR O), and one-stop services for foreign 
businesses to make FDI in Japan through admi nistrative procedures for registration, tax 
and labour applications and so on. 
 
2. Trade and Investment Regime  
Page 23 (Para. 2.19) 
 According to the authorities the only provisions that affect FDI directly are in the Act for Promotion of Japan as an Asian Business Center of 2012 which provides incentives to encourage investment 
in establishing Research and Development and Regional Headquarters, primarily through tax 
breaks, including corporate and income tax breaks.  
Question 
 
2. Have the incentives provided by the Act for Promotion of Japan as an Asian Business Center 
of 2012 been effective? 
 RESPONSE  
The incentives such as corporate tax breaks, income tax breaks, and reduction of patent 
fees provided by the act are e ffective as of February 2015. 
 
Page 24 (Para. 2.24) 
 The Expert Group made a number of recommendations including reducing the tax and 
administrative costs, improving human resources, harmonization and simplification of licensing and 
approval systems, and promotion of EPAs, tax ag reements, and other bilateral investment-related 
treaties.  
Question 
 
3. Could Japan inform the structure and the ma in functions of the expert group on FDI? 
 
RESPONSE  
The Expert Group Meeting on Foreign Direct In vestment in Japan is held by the Minister 
of State for Economic and Fiscal Policy an d constituted by professor, executives of 
companies and so on. WT/TPR/M/310/Add.1 
 
- 237 - 
 
The functions of this meeting are hearing op inions from the top management of foreign 
companies and others and specifying the issu es which should be addressed in order to 
promote foreign direct investment in Japan.  
3. Trade Policies and Practices by Measure 
 Page 37 (Para. 3.44) 
 
"3.44 Overseas manufacturers of electrical an d consumer products may undergo conformity 
assessment and certification conducted in foreign countries by foreign registered conformity assessment bodies, in accordance with relevant la ws (e.g. the Electrical Appliance and Material 
Safety Act and the Consumer Product Safety Act)." 
 Question 
 4. Does Japan intend to negotiate bilateral mutual recognition agreements on technical regulation and conformity assessment procedures related to electrical and consumer products or to 
any other products? If so, can Japan please provide information about those agreements? If not, is 
there any kind of agreement on technical re gulations being negotiated by the Japanese 
Government?   
RESPONSE 
 Japan has currently no bilateral MRA negotiations in progress. 
 
Page 38 (Para. 3.51)  
"… the authorities state that, regarding food safety issues, the Japanese Food Safety Commission 
publishes the result of the risk assessments."  Question 
 5. Could Japan inform the electronic address wh ere such results are published? Are the results 
of the risk assessments available in other language than Japanese?  
 
RESPONSE  
Food Safety Commission of Japan, FSCJ, pu blishes such results as risk assessment 
reports on the website. The reports are available at: http://www.fsc.go.jp/hyouka/index.html. 
 
FSCJ translates an abstract of the reports in to English and publishes it at the English 
Website. The English translations are available at: http://www.fsc.go.jp/english/evaluationre ports/evaluationreports_index_e1.html. 
 
Some of the English translations are also pu blished in the official journal of FSCJ, Food 
Safety , which is a peer-reviewed open-access electronic online journal. Food Safety  can 
be viewed at: https://www.jstage.jst.go.jp /browse/foodsafetyfscj.  
 
Page 40 (Para. 3.53)  
Japan currently imposes import prohibitions on beef and poultry from various countries to prevent 
the spread of BSE and avian flu. The authorities maintain that the process of lifting the import ban includes technical consultations, consideration of  import requirements, and the implementation of 
risk assessment that takes due account of the World Organization for Animal Health (OIE) code, 
and involves consultation with relevant domestic industries, consumers, and requesting countries. Japan has allowed beef imports from the United States, Canada, France, the Netherlands, Ireland 
and Poland under certain conditions based on scientific review by FSC. 
 WT/TPR/M/310/Add.1 
 
- 238 - 
 
  
 
 Question 
 
6. Could Japan explain which procedures are requ ired from the countries affected by the beef 
and poultry import ban to prove the safety of its products regarding BSE and avian flu? Does 
Japan have an objective checklist that must be observed by the exporter country to eliminate the 
ban of its meat products?   
RESPONSE 
 Regarding the procedures of lifting a ban on  beef import from BSE affected countries, 
after the MHLW collect information about th e country conducting BSE control, MHLW 
requests risk assessment to the FSC. Afte r the FSC notifies the MHLW of the risk 
assessment result, specific import requirement is arranged between the MHLW and the country. If necessary, the MHLW conducts the on-site inspection, and confirms the 
compliance of specific import requirement, an d the MHLW will consider the lifting a ban 
on beef import. As to the checklist, we  do not have such kind of checklist. 
 
Regarding avian flu, the animal health auth ority of Japan conduct risk assessment to 
evaluate whether the potential exporting co untry of poultry meat is free from the 
disease or not, in accordance with the "Sta ndard Procedure for Approval for Import of 
Designated Items into Japan to be Quarantined" 
(http://www.maff.go.jp/j/syouan/douei/eisei/sop/ ). As to the checklist, we do not 
have such kind of checklist. 
 
Page 40 (Para. 3.54) 
 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 inspection organization in the 
exporting country and bears the result of the in spection. (…) The inspection bodies must be 
registered with the government of Japan, throug h the government of the exporting country. As at 
October 2014, 3,891 such laboratories were regist ered. In the areas of animal health and plant 
health, Japan has not accredited any laboratory abroad. 
 Questions 
 7. Would it be possible to inform which countries  have successfully registered inspection bodies 
with the government of Japan?  
 
RESPONSE  The Ministry of Health, Labour and Welfare (MHLW) accepts the test results issued by 
Foreign Official Laboratories which are listed by the MHLW. 
 The MHLW maintains the list of Foreign Offici al Laboratories and adds the laboratories 
with analytically capabilities that are intern ationally registered upon the requests from 
Foreign countries.  
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/to pics/importedfoods/dl/1-10.pdf .  
http://www.mhlw.go.jp/english/ topics/importedfoods/1-10.html .  
 
8. Can Japan explain the reasons why no foreign laboratory has been accredited yet in the 
areas of animal health and plant health? Where can be found the requirements for accrediting 
inspection bodies related to animal and plant health? Are they based on any national or international standard? 
 
RESPONSE  In the area of animal health and plant heal th, the government of Japan does not require 
accreditation of laboratory in exporting countries. WT/TPR/M/310/Add.1 
 
- 239 - 
 
Regarding animal health, in order to preven t the entrance of diseases, Japan requests 
exporting countries to attach a sanitary certificate issued by the veterinary authority of exporting countries, and conducts import inspection based on the animal health 
requirements established bilaterally. 
 
Regarding plant health, in order to preven t the entrance of pests, Japan requests 
exporting countries to attach a phytosanitary  certificate issued by the National Plant 
Protection Organization of ex porting countries, and conducts import inspection based on 
the IPPC.  Page 42 (Para. 3.66) 
 
"3.66 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 does not allow competition, or competition is not possible or 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." 
 Question 
 
9. Could Japan please clarify in which cases can central government entities contract through 
single tendering? In which situations does it normally occur?  
RESPONSE 
 Single tendering, which is used for covere d procurement of the GP A, shall be applied 
using the same criteria as that of "limited  tendering" specified in the GPA through the 
application of the Accounts Law, together with special regulations for the implementation of the GPA, including "Cabin et Order Stipulating Sp ecial Procedures for 
Government Procurement of Prod ucts or Specified Services". 
 
Page 42 (Para. 3.69)  
"Procurement of overseas goods and services, su pplied by either domestic or foreign suppliers 
decreased from 7.9% to 6.0% in terms of value. Procurement of foreign goods amounted to 10.3% of the total in 2012, compared with 13.7%  in 2011 (Table 3.6). Procurement from foreign 
suppliers increased from 3.1% in 2011 to 3.2% in 2012 in contract terms, but decreased from 
3.1% to 3.0% in value terms during the same period. The shares of foreign suppliers in contracts resulting from open and single tenders, respectively, were 1.5% and 4.4% in 2012 (1.4% and 4.8% in 2011)." 
 
Question 
 
10. Could Japan please provide further statistical information on the participation of foreign 
goods and services in the Japanese procurements, in particular the shares in contracts by country of origin?  
 
RESPONSE  The ratio of foreign goods and services of the total number of procurement contracts of 
goods and services was 13.4% in 2013, but there are no statistics of the shares in 
contracts by country of origin (For the basis of the statistical information above, please 
see footnote 44 in the Report by the Secretariat (WT/TPR/S/310). 
 
Page 42 (Para. 3.70)  
"Procurement from SMEs is "enc ouraged" under the Law on Ensuring the Receipt of Orders from 
the government and Other Public Agencies by Small and Medium Enterprises (enacted in 1966); under the Law, the government, local authorities, and other public agencies must endeavour to expand procurement opportunities for SMEs, by way of, inter alia, providing information on WT/TPR/M/310/Add.1 
 
- 240 - 
 
  
 
 procurement plans. Nonetheless, no tendering is reserved exclusively for SMEs. These laws and 
regulations apply equally to domestic and foreign SMEs."  Questions 
 11. Could Japan please provide further information on how procurement from SMEs is "encouraged" under the above mentioned law, as well as on how does the central government, 
local authorities and other public agencies ende avor to expand procurement opportunities for 
SMEs?   RESPONSE 
 
The central government sets its own procurement target value from SMEs every year, as a non-binding target, as well as providing information on procurement plans. And the 
result of the procurement of the previous year is published. 
 12. Could Japan please provide detailed information on foreign SMEs that have benefited from 
this policy, such as the share of foreign suppliers in contracts resulting from procurements under 
the "Law on Ensuring the Receipt of Orders from  the government and Other Public Agencies by 
Small and Medium Enterprises", both in terms of contracts and in terms of value?   
RESPONSE 
 The total amount of procurement from SMEs is collected every year but the specific 
information on foreign SMEs is not collected. 
 Page 45 (Paras 3.83 and 3.84) 
 
Paragraph 3.83 states that a licence is required fo r the transfer of a listed technology, including 
software, from Japan to another country, or for transfer within Japan to a non-resident. Paragraph 3.84 indicates the five different kinds of bulk export licences that may apply to 
technology transfer processes. 
 Question 
 13. Could the Government of Japan please provide information on the tax regime applied to the royalties involved in international technology transfers? 
 
RESPONSE  Japan does not have special tax measures applied to the royalties involved in 
international technology tran sfers. Generally speaking, ro yalties are included in the 
gross revenue of companies, and normal corporat e income tax is applied to the profits of 
the companies. 
 
Page 53 (Para. 3.112)  
The Paragraph states that METI would start pr oviding subsidies for energy storage systems 
(lithium-ion batteries). In addition, Japan´s government intended to introduce a subsidy for vehicles powered by fuel cells at ¥2 million per vehicle with further support in some prefectures for local purchases. 
 
Question 
 
14. Could Japan provide further details about these programs, including whether they were 
already implemented or when shall they be effe ctive? Could Japan elaborate on the concept of 
support in some prefectures for local purchases? Concerning the subsidy for vehicles powered by 
fuel cells, what are the requisites for its granting? 
 WT/TPR/M/310/Add.1 
 
- 241 - 
 
RESPONSE 
 Both energy storage systems produced by Japanese manufacturers and those produced 
by foreign manufacturers, including those produc ed in foreign countries, are eligible for 
the "subsidies for energy storage systems (lithium-ion batteries)." Therefore, the 
subsidy is consistent with the WTO agreemen ts, in particular the provision regarding 
National Treatment. 
 
Both vehicles produced by Japanese car ma nufacturers and those produced by foreign 
car manufacturers, including those produced in foreign countries, are eligible for the 
"subsidies for vehicles." Therefore, the subs idy is consistent with the WTO agreements, 
in particular the provision re garding National Treatment. 
 In fiscal 2015, a 20 billion yen subsidy is appropriated for clean energy vehicles. 
The subsidy scheme is as follows: 
 First, an automobile company submits requ ired documents to the next generation 
vehicle promotion center and obtains an appr oval recognizing a clean energy vehicle. 
Second, a buyer of a clean energy vehicle must apply for the subsidy to the center. 
 Pages 60 and 62 (Paras 3.130 and 3.140) 
 
Paragraph 3.130 states that the Intellectual Proper ty Policy Vision (adopted in 2013) defines as 
one of its four pillars the need to provide support for enhancing IP management by SMEs and 
venture companies by raising awareness of the importance of IP within SMEs and providing 
government support for IP activities and acquisition of rights for their use overseas.  
Paragraph 3.140 mentions specific actions already taken by the Government of Japan to support 
SMEs on acquisition of IPRs.  Questions 
 15. Could the Government of Japan please provide further information on the support provided to SMEs on the acquisition, maintenance and exploration of their IPRs overseas? What is the total 
budget allocated by the Government of Japan to this end? What are the governmental and 
non-governmental institutions involved?  
RESPONSE 
 The Government of Japan supports SMEs in rela tion to IP activities and acquisition of 
IPRs overseas from various aspects includin g supporting for fees, providing information 
on intellectual property and consultation. 
 Budget for support SMEs in relation to business development overseas is about 
1.4 billion Japanese yen (FY2014) 
 16. How many SMEs have received this kind of support? What are the criteria for their selection? 
Does the Government of Japan define priority foreign markets or industrial segments to select the 
SMEs that will receive this support? Does the Government of Japan seek to encourage specific sectors with this policy?  
RESPONSE 
For example, the number of subsidies for fo reign application was about 380 (FY2013). 
And, the requirement for being beneficiaries fo r this subsidy is to be SMEs planning to 
expand their business into foreign ma rkets as defined in Japanese law. 
 Page 60 (Para. 3.133) 
 
Paragraph 3.133 and its following flowchart describe the procedures for obtaining a patent right in Japan. Additionally, it is of notice that Japan signed the "Nagoya Protocol on Access to Genetic 
Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization", adopted by WT/TPR/M/310/Add.1 
 
- 242 - 
 
  
 
 the Conference of the Parties to the Convention on Biological Diversity at its tenth meeting on 
29 October 2010 in Nagoya, Japan.  Questions 
 17. Has Japan experienced cases of misappropriation of genetic resources thus far? If so, what measures have been undertaken by the Japanese authorities?  
 
RESPONSE  Japan has not experienced any cases of misa ppropriation of genetic resources, in the 
patent system, so far. Japan has not conc luded the Nagoya Protocol on Access to 
Genetic Resources and the Fair and Equitabl e Sharing of Benefits  Arising from their 
Utilization as of February 2015. 
 
18.  Does the Government of Japan plan to incl ude a requirement that patent applicants provide 
the correct information regarding the origin of the genetic resources and traditional knowledge 
involved in patent applications? If not, how would the Government of Japan address the eventual 
cases of misappropriation of genetic resources in patent applications?  RESPONSE 
 
Japan does not have any plan to include re quirements that patent applicants provide 
information regarding the origin of the ge netic resources and traditional knowledge 
involved in patent applications. 
  If a patent which is related to genetic resourc e or traditional knowle dge should be put to 
post-grant challenge procedures and turn ou t to be unpatentable, the patent could be 
invalidated.  Page 65 (Paras 3.152 to 3.154) 
 
Paragraphs 3.152 to 3.154 state that the protection of geographical indications in Japan is regulated by the Trademarks Act and the Unfair Competition Prevention Act and that the Act for 
Protection of Names of Designated Agricultural, Forestry and Fishery Products and Foodstuffs was 
promulgated in 2014 and will enter into force by June 2015.  
Questions 
 
19.  Is it intended that the Act for Protection of Names of Designated Agricultural, Forestry and Fishery Products and Foodstuffs should constitute a specific GI registration system for agricultural, 
forestry, fishery products and foodstuffs in repl acement for the procedures of the Trademark Act 
and the Unfair Competition Act?   
RESPONSE 
 The new GI Act is to establish a specific GI registration system for agricultural, forestry, 
fishery products and foodstuffs. This Act is  not intended to replace the Trademark Act 
and the Unfair Competition Prevention Act.  20. Does the Japanese government also intend to establish a specific Geographical Indication 
regulation for wine and spirits?  
 RESPONSE 
 
Regarding a specific Geographical Indication regulation for wine, sprits and sake, Japan 
has already established "the Labeling Standa rd Concerning Geographical Indications" 
under "the Law Concerning Liquor Busine ss Association and Measures for Securing 
Revenue from Liquor Tax" based on provisions of the TRIPS agreement. 
 WT/TPR/M/310/Add.1 
 
- 243 - 
 
21. Could the Japanese Government please inform  whether foreign geographical indications of 
agricultural, forestry, fishery products and foodstuffs  have been registered in Japan? If that is the 
case, what were the procedures applied in those cases?   
RESPONSE 
 Please see the answer to Q19.  
 
Page 65 (Para. 3.155)  Paragraph 3.155 describes the procedures that the Government of Japan has undertaken in order 
to accede to the "Beijing Treaty on Audiovisual Performances". Another recently concluded 
agreement related to copyright is the "Marrakesh Tr eaty to Facilitate Access to Published Works for 
Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled", from 2013. 
 
Question:  
22. Taking into account the expected benefits of  the "Marrakesh Treaty", does the Government 
of Japan plan to become a Party to the agreement? If not, what are the underlying reasons for that decision?   
RESPONSE 
 In the direction of future accession to the "Marrakesh Treaty", the Government of Japan 
is currently having necessary discussions wi th stakeholders at the Council for Cultural 
Affair. 
4. Trade Policies in Selected Sectors 
 
Page 104 (Para. 4.125) 
 Japan allows ships to access cabotage services on a reciprocal basis by obtaining permits from MLIT. 
 
Question 
 
23.  Which countries, if any, are currently authorized to access cabotage services?  
 RESPONSE 
 
Japan has concluded the treaties of friend ship, commerce and navigation with Norway 
and U.K.  
Part II: Questions - Government Report WT/TPR/G/310 
 
2. Trade and Investment Policy 
 
Page 5 (Para. 2.10)  
The Japanese Government states that "Japan continues to seek improvements and clarifications of 
the Dispute Settlement Understanding (DSU) which will serve Members' shared interests by enhancing compliance with trade rules and ensuring the integrity and credibility of the rule-based trade system". 
 
Question 
 
24. In Japan's perspective, what kind of improvement and clarifications should be sought in the 
rules of the DSU to ensure the integrity and credibility of the system?   WT/TPR/M/310/Add.1 
 
- 244 - 
 
  
 
 RESPONSE 
 As Brazil should be fully aware, Japan has be en actively engaged in, and has contributed 
negotiating documents, jointly and collectivel y to the negotiations on improvements and 
clarifications of the Dispute Settlement Understanding.
7  
 In the current phase of the negotiations  which effectively began in 2007, Japan, 
together with the European Communities, made textual contributions to the following 
issues
8: 
 "sequencing" issue between the complia nce determination procedures and the 
authorization of the suspension of  obligations, as documented in 
JOB(05)/71/Rev.1; and 
 procedures for the termination of a prev iously granted author ization to suspend 
obligations and for the review of the implementation measure's compliance (so-
called "post-retaliation"), as docu mented in JOB(05)/47/REV.1 and 
JOB(05)/47/Rev.1/Corr.1. 
 These textual contributions are reflected in the July 2008 text prepared by the 
Chair of the Special Session of the Dispute Settlement Body (JOB(08)/81), 
reproduced as the attachment to the Chair' s Report of 21 April 2011 to the Trade 
Negotiations Committee (TN/DS/25). Japan co ntinues to believe that clarifications 
on these two issues would serve to meanin gful improvement of the current dispute 
settlement procedures.  
 The Doha Ministerial Declaration, paragr aph 30, states that WTO Members "agree 
to negotiations on improvements and clarifications  of the Dispute Settlement 
Understanding". Under this clear mandate, anything less than "improvements" or 
"clarification" cannot be accepted as a final outcome of the negotiations which must meet this very high standard. This would mean, at the minimum, any 
amendments or revisions to the current Dispute Settlement Understanding must be 
well balanced and workable as a mechanis m and leave little room for ambiguity.  
 Japan notes that issues other than "seque ncing" and "post-retalision" are also on 
the negotiating table9 and WTO Members put forward various proposals and 
suggestions on these issues. Bearing in  mind the Doha mandate as described 
above, Japan will continue to be active ly engaged in the discussions on those 
issues and contribute to the successful conclusion of these negotiations on improvements and clarifications of th e Dispute Settlement Understanding.  
 
Page 8 (Para. 2.17)  APEC has pursued these objectives in 2014 by advancing Global Value Chains and Supply Chain 
Connectivity, and addressing next-generation trad e and investment issues, including through our 
trade agreements and the Free Trade Area of the Asia Pacific (FTAAP), which is a major instrument to further APEC's regional economic integration agenda. In this regard, Japan took the lead in 
manufacturing related services in supply chains/ value chains as one of the next generation trade 
and investment issues to advance the FTAAP in li ne with the agreed "Beijing Roadmap for APEC's 
Contribution to the Realization of the FTAAP" in 2014. 
 
Questions 
 25. In Japan´s perspective, what are the most pressing issues concerning next-generation trade 
and investment issues that should be addressed? 
                                               
7 See, e.g. documents WT/MIN(99)/8, WT/MIN(99)/8/Corr.1, WT/MIN(01)/W/6, TN/DS/W/22, 
TN/DS/W/32, JOB(02)/45, JOB(05)/47, JOB(05)/71. 
8 Japan also made a textual contribution regarding ce rtain procedures for third party's participation in 
consultations under DSU Article 4.  
9 These issues are: third party rights; panel compos ition; remand; mutual agreed solutions, strictly 
confidential information; transparency and amicus cu riae briefs; timeframes; de veloping country interests 
including special and differential treatment; flexibility and member control; and effective control. WT/TPR/M/310/Add.1 
 
- 245 - 
 
RESPONSE 
 "Pathway to FTAAP" stipulates that APEC  will make an important and meaningful 
contribution as an incubator of an FTAAP in  defining, shaping and addressing the "next 
generation" trade and investment issues that an FTAAP should contain. The issues such 
as "innovation and trade", "Global Supply Chains" and "SMEs in Global Production Networks" in 2011, "APEC Model Chapter on Transparency" in 2012 and "Manufacturing-
related services" in 2014 are selected and addressed in APEC Committee on Trade and 
Investment (CTI). Noting the importance  of service sectors in deciding the 
competitiveness of manufacturing sectors, "Manufacturing-related services" proposed 
by Japan and endorsed by Ministers respon sible for Trade (MRT) in 2014, as a next-
generation trade and investment issue, is on e of the most pressing issues concerning 
next-generation trade and in vestment issues in APEC. 
 
26.  Which means are being employed to address these issues?  
 RESPONSE 
 
In APEC, an action plan will be develope d in 2015 to enhance trade liberalization, 
facilitation and cooperation in manufacturing related services. 
 
Page 11 (Para. 2.42) 
 Since December 2011, Japan has been implementing the "Program for Promoting Japan as an 
Asian Business Centre and Direct Investment into Japan". Location subsidies, tax incentives and 
reduced patent fees for R&D sites are being offered under the programme. The authorities stated that they had a site location subsidy for glob al companies from FY2010 to FY2014 and the total 
amount of subsidy was ¥4.0 billion. 
 Question 
 
27.  In the context of the implementation of the "Program for Promoting Japan as an Asian 
Business Centre and Direct Investment into Japan", what are the conditions for benefiting from the 
grants under that program? Could Japan provid e further information on the official support 
provided to Aircraft companies within that program, and whether it has benefited the Mitsubishi 
Aircraft Company and to what extent? Please specify the amount of any expenditure under that program on an annual basis, since 2010, and its main recipients.  
 
RESPONSE  Projects eligible for the subs idy program shall be those fo r establishing new regional 
headquarters or R&D sites in Japan. A main requirement for the subsidy program is that 
eligible companies must have corporate status  in Japan and must belong to a corporate 
body consisting of group companies that ar e operating an actual business in two or 
more countries (including Japan). 
 The subsidy program does not provide any specific support for aircraft companies. 
Mitsubishi Aircraft Company has not submitte d the application for the subsidy program. 
The amount of the subsidy under the program was \2 billion for FY2010 and \500 million each year from FY 2011 to FY2014. The past app licants selected under the 
subsidy program are available on the following URL. 
 
1) FY2010 http://www.meti.go.jp/englis h/press/2011/0428_01.html.  
 
2) FY2011 http://www.meti.go.jp/englis h/press/2011/1221_01.html.  
 
3) FY2012 http://www.meti.go.jp/englis h/press/2013/0206_01.html.  
 WT/TPR/M/310/Add.1 
 
- 246 - 
 
  
 
 4) FY2013 
http://www.meti.go.jp/englis h/press/2013/0709_01.html.  
 
5) FY2014 (1st invitation)* 
http://www.meti.go.jp/englis h/press/2014/0626_04.html. 
 
6) FY2014 (2nd invitation)* 
http://www.meti.go.jp/englis h/press/2014/1027_01.html.  
 
*Note: In FY2014, the name of the subsid y program was renamed and the invitation 
for applicants for the subsidy program was implemented twice. 
 
Page 12 (Para. 2.44)  
From February to April in 2014, the Japanese Go vernment convened the Expert Group Meeting on 
Foreign Direct Investment in Japan five times and compiled a report on challenges to promote investment, taking into account the op inions of foreign companies as well. 
 
Question 
 28. Does the report mention possible paths to overcome those challenges? 
 
RESPONSE  
No, it does not. The report analyzed and summarized the opinions of foreign companies 
and others in a straightforward manner.  
4. Japan's Domestic Policies 
 Page 18 (Para. 4.26)  
Japan has promoted reforms in several service-related sectors (maritime transport, accounting and 
telecommunications)  
Question 
 
29. In Japan´s view, have these reforms positively affected the supply of services by foreign 
companies? 
 RESPONSE  
These reforms were conducted in order to re alize the following policy objectives and do 
not give trade restrictive effect  on foreign service suppliers. 
 
For expansion of tonnage tax, the number of Japanese-flagged-vessels and that of 
Japanese crews will be secured by includ ing the number of quasi-Japanese-flagged 
vessels in it in order to respond to the impo rtance of establishing economic security by 
Japanese merchant fleet.  
 Relaxation of requirements for voluntary a pplication of IFRS aims to increase the 
number of the companies applying IFRS volunt arily. This increase will ensure that Japan 
has a voice in development process of IFRS an d will contribute to foster emerging equity 
markets by reducing the burden of IPO comp anies that intend to apply IFRS from the 
preparation phase for the listing. 
 
※The Present Policy on the Application of In ternational Financial Reporting Standards 
(IFRS) (June 19, 2013) 
 Regarding the telecommunication sector, this reform expanded the scope of 
telecommunication service for which Tele communications Carriers are obliged to 
account from perspectives of consumer protection. 
 WT/TPR/M/310/Add.1 
 
- 247 - 
 
Part III: Other Questions 
 Support to the aircraft industry  
The Brazilian Government has been presenting qu estions in the Trade Policy Review and in the 
Committee of Subsidies and Countervailing Measures regarding the support programs provided by the Japanese Government to the development of th e Mitsubishi Regional Jet (MRJ). It has been 
reported by a number of press vehicles that the Japanese Government intends to provide official 
support to the development of a new generation of  the MRJ. According to the same reports, the 
Japanese authorities' objective concerning the new aircraft would be to bolster the domestic content of its parts to around 70%, comparing to the 20% domestic content of the first generation 
of the MRJ. 
 Questions 
 30. Could Japan confirm whether it intends to provide official support for the new generation of the MRJ?  
 
RESPONSE  The Government of Japan does not recognize any programs about the development of a 
new generation of the MRJ. The Government of Japan does not have any plan for new 
generation of the MRJ.  
31. Which kind of support does the Government of  Japan plan to provide for the new generation 
MRJ?  
RESPONSE 
 Please see the answer to Question 30.  
32. Can Japan specify the terms and conditions of each kind of support? 
 RESPONSE 
 
Please see the answer to Question 30.  
33. How would the Japanese Government reconcile its intentions regarding the domestic content 
of the new generation MRJ and its obligations under the WTO, specifically art. 3.1(b)of the Agreement on Subsidies and Countervailing Measures?   
Japan's Ministry of Education, Culture, Sports, Science and Technology ("MEXT") in August 2014 
released a document entitled "Vision for Stra tegic Next-Generation Aircraft Research and 
Development." The document is available here: 
http://www.mext.go.jp/b_menu/ houdou/26/08/__icsFiles/afie ldfile/2014/08/19/1351186_02_1.pd
f. According to Brazil's understanding, this plan  would involve expenditures of as much as 
US$500 million to develop a new jet aircraft. Brazil would appreciate more information on the 
planned programs identified in this document. In particular, please provide details on the current 
and expected operations of the (a) Commercial Aircraft Domestic Production Research and Development Program, and (b) Supersonic Aircraft Research and Development Program.  
RESPONSE 
 Please see the answer to Question 30. 
 
Question 
 
34. Please include in your responses an identifica tion of the source(s) of funds for the programs 
mentioned above, the amount of funding, how funds are or will be distributed, and recipients of funds. Please also indicate whether support provided under these programs will be notified under Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing 
Measures. WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 "Research and Development Vision for Strategi c Next-Generation Aircraft" is the vision 
for the research and development of future  aeronautical science and technology. The 
vision proposes two initiatives. One is the "Commercial Aircraft Domestic Production 
Research and Development Prog ram", which aims to establish advanced technology with 
regard to safety, environmental compatibility and economic feasibility in aeronautical 
science and technology. The other initiative is the "Supersonic Aircraft Research and 
Development Program", which aims to develo p advanced technology for a supersonic 
aircraft. The details of these programs are undecided.  
With regard to the notification, if needed , we will follow the appropriate procedures 
outlined under Article 25 of the SCM Agreem ent and Article XVI:1 of the GATT1994.  WT/TPR/M/310/Add.1 
 
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23. HONG KONG CHINA 
Secretariat Report – WT/TPR/S/310 
 
A. Trade Policy and Practice by Measure 
 
Consumption tax (Page 11, para. 1.4 and page 50, para. 3.104)  
1. Japan introduced the first increase in cons u m p t i o n  t a x  i n  1 7  y e a r s ,  f r o m  5 %  t o  8 % ,  i n  
1 April 2014. The original plan to further increase the tax rate to 10% in October in 2015 was delayed until April 2017 in light of data suggesting that the increase in the sales tax from 5% to 8% affected Japan's real GDP gr owth rate more than expected. 
 
Question 
 
To what extent has the increase in consumption tax from 5% to 8% affected Japan's economy 
including the GDP growth rate? Is Japan prepared to abandon or modify the second stage increase 
if the economic impact continues to be less favourable than expected? 
 
RESPONSE  Although the real GDP growth rate in the second and third quarters of 2014 turned 
negative due in part to a reaction after a last-minute rise in demand before the 
consumption tax increase, it turned positi ve in the fourth quarter. The Japanese 
economy is on the moderate recovery, while  employment and income situation show a 
trend toward improvement. Private consumpt ion in the second quarter of 2014 turned 
negative, mainly because of a reaction afte r a rise in last-minute demand before the 
consumption tax increase. Although the incr ease in private consumption in the third 
quarter remained minor despite large negative  growth, this was because of a decline in 
consumer sentiment and unseasonable summer weather. Private consumption continued 
to show positive growth in the fourth quarter for the second consecutive quarter. The impact of the rise in last-minute demand  before the consumption tax hike and the 
reaction are estimated at around 3 trillion yen, while downward pressure on private 
consumption caused by the income effect from  decreasing real income is estimated at 
around 1 trillion yen, according to "Japanese Economy 2014-2015", which was 
published by the Cabinet Office. Private cons umption holds firm, while weakness can be 
seen in consumer sentiment recently. The effect of the consumer tax increase on 
pushing up consumer prices, in terms of general, excluding fresh food, petroleum 
products and other specific components (ref erred to as "core core") was estimated at 
around 2% (Cabinet Office).  The Government of Japan decided that the Ap ril 2017 consumption tax hike from 8% to 
10% will be implemented certainly without any provisos for decisions based on the 
economic climate, because it is necessary to take responsibility to pass down a social 
security system to the next generation an d to secure trust of the market and the 
international community. 
 Customs procedures and requirements and customs valuation (Pages 26-27, 
paras. 3.1-3.9) 
 2. We note that Japan has in place a set of relatively simple and efficient custom procedures. The Authorized Economic Operators (AEO) scheme was introduced since March 2006 to simplify 
customs procedure and facilitate trade. Japan ranks 20
th (out of 189 economies) in the World 
Bank's Trading Across-Borders 2015 Index.  
Question 
 
With the implementation of the Trade Facilitation Agreement (TFA), will Japan consider introducing 
any additional trade facilitative measures to further simplify its customs procedures, improve 
transparency and clarity in order to boost trading activities?  WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 Japan has already implemented the provisions of the TFA with the current domestic laws 
and regulations. Japan is not considering intr oducing additional laws and regulations for 
the implementation of the TFA. 
 B. Trade Policies by Sector 
 
Financial services (Page 93, para. 4.98)  3. It was noted that the Postal Service Privatisation Act of 2012 provides for the privatisation of 
Japan Post Holdings. However, the timing and extent  of the sale of these shares has not yet been 
scheduled.  
Question 
 
Please share with us the latest development of the privatisation of Japan Post Holdings and the 
reasons for the Japanese Government not disposing of the shares so far. Has the Japanese 
Government considered any method and time line for disposal of the shares?  RESPONSE 
 
On December 26, 2014, Japan Post Holdings announced the IPO scheme of itself and its 
two financial subsidiaries (Japan Post Bank and Japan Post Insurance) after 
consultation with Ministry of Finance Japan. 
 Aiming to list in the middle of fiscal 2015 or later, Japan Post Holdings is making 
preparation for listing at the Tokyo Stock Exch ange, such as improvement of its internal 
structure to prepare for listing examination.  Maritime transport (Page 104, para. 4.127) 
 
4. We noted that the Japan Railway Construction , Transportation and Technical Agency (JRTT) 
provides support to coastal shipping by sharing the cost and ownership of vessels. The domestic 
shipping company pays a usage fee to JRTT for the period of joint ownership which is 7-15 years. 
JRTT also provides subsidies to coastal shipping companies for the take up of new technologies, as well as support for ferry services to remote islands. 
 
Question 
 How is domestic shipping companies defined? Are they all eligible to apply for these support or 
subsidies from JRTT? Is there any foreign equity restriction on these domestic shipping companies? 
 RESPONSE 
 
A domestic shipping company which belongs to one of the following:  
i) The one which gets permission base d on the regulation of the Marine 
Transportation Law clause 1, article 3 or clause 1, article 21 (including the case 
when these regulations are applied in the same law article 44) 
ii) The one which carries on the rental ferry  business which makes the rental ferry of 
offered shipping (including a period charte red vessel) inserted in (i) and notifies 
ship's lease business based on the regula tion of the Marine Transportation Law 
article 20 based on the same Law article 33. 
iii) The one which receives registration of  coastal shipping business based on the 
regulation of Coastal Shipping Bu siness Act clause 1, article 3. 
 
The eligible busine sses are as follows: 
  The corporation who received the registrati on of coastal shipping business(coastal 
shipping transportation business or sh ip's lease business) based on Coastal 
Shipping Business Act or the person wh o tries to establish a corporation and WT/TPR/M/310/Add.1 
 
- 251 - 
 
receive registration of the same law (including the case  that the private business 
incorporates). 
 A private business which receives a registration of coastal shipping 
business(coastal shipping tr ansportation business or sh ip's lease business) based 
on Coastal Shipping Business Act and builds a ship with a corporation which 
receives a registration of coastal shippi ng business, and the corporation becomes a 
shipping manager of the ship. 
 The one which gets permission for regular services for general passenger transport 
or irregular services for passenger tran sport ,or notifies ship's lease business 
based on the Marine Transportation Law (including the scheduled cases 
respectively) 
Further, for the business which received the permission of the ab ove-mentioned Marine 
Transportation Law or a registration of Coas tal Shipping Business Act, etc., there is no 
foreign equity restriction about the ownership building of JRTT.  
 
Air transport (Page 106, paras. 4.132 and 4.133)  
5. As learnt from the Secretariat Report, Sendai Airport, Kansai International Airport and Osaka 
International Airport are in the process for the privatization of their operation. The selection processes have begun and the operating right will be granted in 2015/16.  
Question 
 
Are foreign companies allowed to participate in the selection process for being a private business 
operator for the operations at these airports? Ho w about local companies with foreign equity, and 
if yes, is there any foreign equity restriction? What are the selection criteria?  
RESPONSE 
 Last year, the Government of Japan star ted the procedures for Sendai Airport's 
privatization. There are no restrictions abou t the participation of foreign companies or 
foreign equity of applicant companies, but the deadline for the application has already 
passed. Please refer to the Application Guid elines for further information including the 
selection criteria. 
http://www.mlit.go.jp/en/re port/press/koku05_hh_000001.html . 
 
As to Kansai International Airport and Osaka International Ai rport, New Kansai 
International Airport Company (NKIAC) started the procedures for Kansai International 
Airport and Osaka International Airport's priv atization. There are no restrictions about 
the participation of foreign companies or fore ign equity of applicant companies. Please 
contact NKIAC for further informatio n including the selection criteria. 
http://www.nkiac.co.jp/en /concession/index.html .  
 
 WT/TPR/M/310/Add.1 
 
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 24. RUSSIAN FEDERATION 
Questions – Secretariat Report WT/TPR/S/310 
 
Summary 
11, Page 9 
 For a variety of reasons, Japan's SPS and TBT requirements are often more strict than 
international standards and the cost of meeting its quality and safety standards can be high. As at 
31 March 2014, there were 10,525 Japanese Industrial Standards (JIS), 5,823 of which correspond with international standards, and 97% of JIS had been harmonized with identical or modified international standards. Japan currently imposes import prohibitions on beef and poultry from 
various countries to prevent the spread of some animal diseases, including BSE and avian flu. 
 Question 
 According to the Report, the Japanese authorities ad here to high safety requirements in respect of 
goods imported to Japan. In this regard, could you please provide information about the system of 
safety determination for food products exported  f r o m  J a p a n ?  A t  t h e  s a m e  t i m e ,  p l e a s e  c l a r i f y  
what documents confirm the safety of food products in Japan.   RESPONSE 
 
Under the Food Sanitation Act, foods which ha ve a risk for human health and/or do not 
comply with criteria/regulations on this  Act shall not be distributed in Japan. 
 
Japan issues certificates for foods export ed from Japan, upon request from the 
importing countries, based on consultations between the importing country and Japan, 
although not based on the Food Sanitation Act.  
 1 Economic Environment 1.1 Recent economic developments 
1.5, Page 11 
 Japan also aims to halve by FY2015 the primary deficit of central and local governments as 
compared to that of FY2010, and to achieve a pr imary surplus by FY2020. Thereafter Japan will 
seek to reduce the public debt-to-GDP ratio (estimated at about 240% of GDP in 2013). According to the IMF, the fiscal measures adopted by Japan are a welcome step but a concrete medium-term 
fiscal consolidation strategy beyond 2015 is needed otherwise the public debt-to-GDP ratio would 
again begin to rise after 2019.  Question 
 Could Japan please describe some of the measures to achieve mentioned results? Is there any action plan? Could you specify the fiscal measures adopted by Japan? 
 
RESPONSE  
The government of Japan aims  to achieve both economic revitalization and fiscal 
consolidation. Accordingly, the government  will formulate a concrete plan by the 
summer of 2015 for the central and local governments to achieve a primary surplus by FY2020. 
 
3.1.10 Government procurement  
3.67, Page 42 
 
The Act for the Promotion of Use of Wood in Public  Buildings, issued in 2010, stipulated promotion 
of the use of wood in the construction of public buildings; the authorities maintain that the law is 
operated without distinction between domestic and imported goods. In June 2013, Japan 
eliminated its goal of covering 50% of domestic demand for wood with domestic supply. It currently does not have a wood self-sufficiency rate as a policy objective. WT/TPR/M/310/Add.1 
 
- 253 - 
 
Question 
 
On 1 April 2013, Japan implemented the Wood Use Points Program (WUPP). Recently Japan has notified the WUPP to the WTO Secretariat by no tification G/TBT/N/JPN/471 of 4 November 2014 
with a delay of more than a year. Under this init iative, consumers purchasing new homes built with 
a minimum of 50.1% of wood products from selected varieties of conifers receive up to 300,000 Wood Use Points (with an equivalent value in Yen), which can be redeemed through the 
purchase of specified local forestry/agriculture/fishery products, or alternatively, donated to 
support certain local economic activities. Japan approved a list of conifers for participation in the WUPP:  
- 6 species are endemic for Japan; 
- 5 species originated from limited list of the WTO members. 
 
The WUPP introduced new conifers classification based on criteria of "growing forest resources". In 
accordance with the WUPP compliance with the classification above is mandatory for participation in program.  
 
In our view, the WUPP is a technical regulation wi thin the meaning of Annex 1 of TBT Agreement. 
In this context, please clarify whether Japan co nsiders the WUPP as a subject for its commitments 
under the GATT and the TBT Agreement: 
 
- early notification (Art 2.9.1 and 2.9.2), 
- reasonable interval between the publication and entry into force (Art. 2.12);  
- use of relevant international standards (Appe ndixes of the Convention on International 
Trade in Endangered Species (CITES) and classification of International Union for Conservation of Nature (IUCN)) as a basis for the technical regulation (Art. 2.4 TBT 
Agreement);  
- compliance with National Treatment and MFN pr inciples (Articles 1.1 and 3.4 of the GATT, 
Art. 2.1 of TBT Agreement). 
 
RESPONSE 
 Japan submitted its notification of the prog ram for the purpose of information sharing, 
and without prejudice to the applicability of  the TBT agreement. The program ensures 
that foreign wood and domestic wood are treated in a non-discriminatory manner, consistent with the WTO agreement. 
 
3.2.3 Export prohibitions, restrictions, and licensing 
3.78, Page 44  
In addition, the Foreign Exchange and Foreign Trade Control Act provides the legal basis for 
applying export controls while product lists and detailed operational guidelines are found in secondary legislation, including Cabinet orders, Ministerial orders, etc. The main Orders under the 
Act are the Export Trade Control Order of 1949 (l ast amended in 2014) which sets out the goods 
and their destinations where the permission or a pproval of METI is required for export, and the 
Foreign Exchange Order of 1980 (last amended in 2013) which sets out the technologies and 
destinations where permission from METI is requ ired for transfer outside Japan. These lists of 
goods and technologies are updated regularly, as are destinations and end-user lists.  With regard to prior notification and approval required for import/export operations from/to some 
destinations, please provide the procedure for an attribution of products originating from some 
destinations to requiring prior notification and obtaining the specific permission of METI. In our view, Articles 48 and 52 of the Foreign Exchange  and Foreign Trade Control Act authorizing the 
Government of Japan to prohibit export or import operations without legitimate reason may create 
an obstacle to trade that appear not to comply neither with MFN and National Treatment principles nor with Article XI of GATT. Please indicate if there is an intention to remove these trade-distortive 
regulations.  
 WT/TPR/M/310/Add.1 
 
- 254 - 
 
  
 
 RESPONSE 
 As for the import controls on the products originating from specific destinations, METI 
executes the import restrictio ns by applying orders related to the Foreign Exchange and 
Foreign Trade Act in accordance with the ob ligations under the United Nations Security 
Council Resolution, bilateral agreements and others. The Government of Japan enforces 
the Foreign Exchange and Foreign Trade Cont rol Act in accordance with international 
law including the WTO agreement. 
 3.1.8 Sanitary and phytosanitary measures 3.51, 3.52, Pages 38-39 
 
According to the authorities, SPS measures applied by Japan are based on the relevant international standards. Where such relevant international standards do not exist, SPS measures 
are based on scientific risk assessment, in accord ance with the WTO SPS Agreement. Additionally, 
the authorities state that, regarding food safety issues, the Japanese Food Safety Commission publishes the result of the risk assessments. 
 
Regarding food safety measures, in Japan more than 800 pesticides have residues standards and at least 800 food additives are approved for use. According to the authorities, it is very difficult to confirm whether all these substances comply with international standards. While Codex standards 
are considered in MHLW's risk management, only additives that have been reviewed by the Food 
Safety Commission and approved by MHLW may be us ed in food and beverages sold in Japan. This 
approach is commonly applied not only for food additives but in the setting of all types of food 
standards. 
 Question 
 Could you please clarify the procedure of the a pplied MRLs determination of compliance to the 
international standards. Furthermore, please clarify for what substances the authorities apply MRLs that are more stringent, than those determined by Codex Alimentarius. Could you please provide 
scientific justification that have been made to id entify their non-conformity to Codex Alimentarius, 
as required by Article 5 of the WTO SPS Agreement or please provide reference whether it is possible to get acquainted with them.  
 
RESPONSE  
Basically, Japan establishes or  revises MRLs (maximum resi due limits) for agricultural 
chemicals, including veterinary drugs and pesticides, based on the risk assessment 
conducted by the Food Safety Commission of  Japan (FSC). In light of the assessment 
results, the Ministry of Health, Labour and Welfare (MHLW) of Japan carries out 
exposure assessment based on food intakes by Japanese citizens and crop residue 
studies to confirm that MRLs will not cause damage to human health .  
 
Japan harmonizes Japan's MRLs in line with Co dex standards where appropriate .However, there 
are some cases that Japan needs to set the limits stricter than Codex standards for some reasons, such as a difference in food intake s between Japan and other countries.  
 
The FSC publishes risk assessment results for indi vidual chemicals on FSC's website. The MHLW 
also releases the grounds for setti ng forth MRLs on its website.  
 
3.54, Page 40 
 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 inspection 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 government of Japan, through the government of 
the exporting country. As at October 2014, 3,891 su ch laboratories were registered. In the areas 
of animal health and plant health, Japan has not accredited any laboratory abroad.   WT/TPR/M/310/Add.1 
 
- 255 - 
 
Question 
 
Could you please provide more information on the re gistration procedure of the inspection bodies?  
 
RESPONSE 
 The Ministry of Health, Labour and Welfare (MHLW) accepts the test results issued by 
Foreign Official Laboratories which are listed by the MHLW. 
 The MHLW maintains the list of Foreign Offici al Laboratories and adds the laboratories 
with analytically capabilities that are intern ationally registered upon the requests from 
Foreign countries. 
 For the detailed procedure of registration to the MHLW's list of Foreign Official 
Laboratories, please refer to the following URL. 
http://www.mhlw.go.jp/english/to pics/importedfoods/dl/1-10.pdf . 
 
4.1.2 Agricultural policies  
4.1.2.2 Trade policies 4.21, page 73  
Under the simultaneous buy and sell (SBS) systems for rice and wheat, an importer 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 
 Could you please clarify the amount of rice (in metric tons) imported to Japan, its type, quality, for what purposes it is used, the ratio of the imported and the exported rice.  
Furthermore, according to the USA Trade Summary Report the import of rice to Japan from the 
USA is nearly 300,000 metric tons. Could you please clarify for what purposes the American rice is used and what other countries export its rice to Japan and for what purposes it is used.  
 
RESPONSE  
1  With regard to the quantity of imported and exported rice, please refer to Japan's 
notification to WTO for state trading enterprise (G/STR/N/15/JPN). 
2  Types of rice imported to Japan are long grain, middle grain and short grain. 
3  In terms of quality, Japan does not require any condition for import. However, in 
order to ensure food safety, it carries out inspection such as on agricultural 
chemicals residues. 
4  Japan imports rice mainly from U.S., Thailand, Australia and China, and they are 
used for food, processed food, feed etc.  
5  Data concerning the use of imported rice by country is not available.  
 
4.17, 4.1.2.3, 4.1.2.3.7, 4.1. 2.4.2, Pages 73, 74, 78, 80 
 In general, tariffs on agricultural products (WTO definition), with an average of 14.9%, are higher 
than tariffs on other products, with an average of 3.7%. Furthermore, the standard deviation of 
26.5 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 nearly 
300%. In addition, 17.4% of agricultural tariff lines are non- ad valorem  (section 3.1.4.1). 
 
According to points 4.1.2.3, 4.1.2.3.7, 4.1.2.4.2 (pages 74, 78, 80), domestic support of local farmers (dairy quotas through Japan Dairy Council, subsidies for agricultural production) and high 
customs tariffs make the domestic prices for agricu ltural products (for example, for dairy products) 
exceed world prices. Periodically there is a shortfall of dairy products in retail chains (in particular, the restriction for butter sales in summer 2014 in Tokyo, in January 2015 on the island of Hokkaido). WT/TPR/M/310/Add.1 
 
- 256 - 
 
  
 
 Question 
 
Could you please clarify what measures were taken by Japan to normalize the situation with shortfall of the mentioned products in retail chains. Is it possible to meet quickly the shortfall of  
agricultural products (particularly dairy products ) by provision-importers with an opportunity to 
promptly supply these products (including quotas)? Are there any changes in the current system of setting tariffs for agricultural products and system of domestic support planned for align the price 
level?  
 RESPONSE  
In FY2014, Japan increased import quantity of butter through the state trading in 
response to the shortage of butter. Thes e butter imports stabilized supply and demand 
of domestic butter. 
 
4.19 Page 73   
In its most recent notification on imports under tariff quotas (for FY2012) to the WTO Committee 
on Agriculture, Japan has 18 tariff quotas covering 1 96 tariff lines at the 9 digit level. Fill rates for 
each quota have been fairly consistent over the past few years but vary considerably from one quota to another. For example, the fill rates for "Other dairy products for general use", "barley and 
its processed products", "wheat … and its processe d products", "evaporated milk" and some others 
were over 90% for each year from FY2007 to FY2012 but fill rates for other quotas, such as "skimmed milk", "prepared whey (for infant formula)", "butter and butter oil", and some others 
were consistently below 40%. 
 Question 
 There are 18 tariff quotas covering 196 tariff line s in Japan. Import involves both public and 
private sectors. The Ministry of Economy, Trad e and Industry of Japan is responsible for the 
administration of import quotas. The Ministry of Agriculture, Forestry and Fisheries of Japan is 
mainly responsible for distribution of agricultural quotas. For example, the Ministry of Agriculture, 
Forestry and Fisheries according to the law on the interim compensatory measures for milk producers sets a quota on butter imports with a fat content not more than 85% 
(HS subcode 0405 10 110) every year. The respon sible body for direct distribution among 
importers is the Japanese Agricultural and Livestock Corporation.  
Quotas are not filled by 100 % and the rate for ea ch vary greatly. For example, such quotas as 
"other dairy products for general use", "barley and its products", "wheat and its processed products", "condensed milk» are filled by 90%, but such quotas as "skim milk", "prepared serum" (for infant milk formula), "oil and butter" continuously filled by 40%. Moreover, the unused import 
quotas are not transferred to the next period and are not reallocated. 
 Could you please specify the countries of origin, which import products within the non-filled quotas 
while the domestic market in Japan is obviously shortaged with such products? What 
circumstances has caused that non-filling of quot as? Do the Japanese authorities plan any changes 
in the current system of quotas allocation or any introduction of rules on the reallocation of 
quotas?  
 RESPONSE  
Japan applies appropriate TRQs consiste nt with the WTO agreement and their 
application is conducted in a fair and tr ansparent manner. The underfill of TRQs for 
some products is mainly due to a decline in their domestic consumption related to these 
TRQs. Concerning unused quotas, a scheme of reallocation has been implemented. There 
is no concrete plan to change the current procedure.  
Questions – Government Report WT/TPR/G/310 
 WT/TPR/M/310/Add.1 
 
- 257 - 
 
2 Trade and Investment Policy 
2.4.3 Japan's bilateral activities outside of FTAs 2.26,  page 10 
 
… Statistics show a rapid decline in exports from  Japan to Russia over the period from March 
to September 2014 compared to the same period of the last year. 
Question 1 
In accordance with a number of trade restrictive measures in respect of the Russian Federation in 
relation to the situation in Ukraine, in particular Regulation of the Cabinet of Ministers of Japan of 5 August 2014, the property and interests in proper ty of certain natural and legal persons of the 
Russian Federation are blocked; the access to the capital markets for affected persons, including certain Russian financial institutions, is restricted; admission of certain natural persons to the territory of Japan is prohibited.  
Such measures effectively restrict supply of services by such persons within the territory of Japan, 
in particular through mode 1, 3 and 4, including in the sectors where specific commitments of 
Japan do not provide for such types of restrictions. Such measures also result in restriction of transfers of payments by such services suppliers  c o n t r a r y  t o  p r o v i s i o n s  o f  G A T S  A r t i c l e s  X I  
and XII. Moreover, these restrictions are applied only in respect of the services suppliers of the 
Russian Federation.  - Please explain the nature of these measures and rational behind them. 
 
RESPONSE  
The measures have been introduced, in view of the international situation over Ukraine, 
in an attempt to maintain in ternational peace and security as well as contribute to the 
international efforts for achieving internationa l peace aimed at a peaceful solution of the 
issue, in line with the measures taken by other major countries. 
 - Please explain the criteria used for the inclusion of certain Russian natural and legal persons 
on the List of persons to which these measures are applied.  
 
RESPONSE  
Japan has implemented the restrictive measures  with regard to certain individuals and 
entities who/which are considered to have contributed to the violation of Ukraine's 
sovereignty and territorial integrity; for example, those who are considered to be 
directly involved in the unilateral "annexati on" of Autonomous Republic of Crimea and 
the City of Sevastopol or the de stabilization of eastern Ukraine. 
 - Please explain how this measure complies with Japan's specific commitments and GATS 
Articles II and XI.  
- Please indicate the timeframe for bringing these measures in consistency with provisions of 
the GATS. 
 
RESPONSE  
With respect to these questions, Japan carefu lly considered its WTO obligations before 
adopting these measures. These measur es comply with those obligations. 
Question 2 
 
The said measures include certain restrictions affecting also trade in goods between the Russian Federation and Japan, in particular, though not exclusively, the restrictions on import of certain 
goods from the Russian Federation to Japan. 
 - Please explain the nature of these measures and rational behind them. 
 WT/TPR/M/310/Add.1 
 
- 258 - 
 
  
 
 RESPONSE 
 Last September, Japan announced  that it had introduced measures to tighten the export 
restrictions on arms and dual-use goods for military use to the Russian Federation. This 
measure has been introduced, in view of the international situation over Ukraine, in an 
attempt to maintain international peace an d security as well as contribute to the 
international efforts for achieving internationa l peace aimed at a peaceful solution of the 
issue, in line with the measures taken by other major countries. 
 - Please explain how this measure complies with GATT Articles I and XI. 
- Please indicate the provision of the WTO Agreement that justifies this measure. 
- Please indicate the timeframe for bringing these measures in consistency with provisions of 
the GATT. 
 
RESPONSE 
 With respect to these questions, Japan carefu lly considered its WTO obligations before 
adopting these measures. These measur es comply with those obligations. 
Question 3 
 
In respect of all measures mentioned above:  - Does Japan apply measures that are similar to any of the measures described above in 
respect of any other WTO Member? If yes, please explain the reasons for applying such 
measures to other WTO Members and indicate legal acts according to which such measures are applied? 
- Were all of the mentioned measures of Japan re ferred to above notified to the WTO? If no, 
please explain, why? 
 
RESPONSE 
 Japan takes necessary trade measures to othe r WTO parties to the extent that the WTO 
agreement allows. 
 
In case the government of Japan introduc es new trade measures, the government of 
Japan carefully considers its WTO consistenc y and implement in accordance with its 
relevant laws and regulations.  
 2.5 Investment policy 
2.5.1 Program for promoting Japan as an As ian Business Centre and direct investment 
into Japan  
2.5.2 Outlook, 2.44., 2.45., page 12  
From February to April in 2014, the Japanese Go vernment convened the Expert Group Meeting on 
Foreign Direct Investment in Japan five times and compiled a report on challenges to promote investment, taking into account the opinions of  foreign companies as well. In April 2014, the 
Japanese Government established the Council for Promotion of Foreign Direct Investment in Japan 
as a new headquarters for cross-ministerial promotion of investment.  
Currently, the Council for Promotion of Foreign Direct Investment in Japan strives to make cross-
ministerial efforts and to carry out the necessary institutional reforms. Diplomatic missions abroad 
and JETRO cooperate in strengthening activities abroad which focus on attracting investment projects. In addition, strategic sales pitches are conducted by the Prime Minister and other Cabinet 
Ministers. 
 Question 
 Could Japan provide more details on a report on challenges to promote investments? Whether the report has been published? If yes, could Japa n provide the reference? Please, provide further 
information on the activities of the Council for Promotion of Foreign Direct Investment. We would WT/TPR/M/310/Add.1 
 
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appreciate more info on its status, competence, functions, and other related information. Please, 
specify the website of the said Council? What is the role of JETRO in attracting FDIs?   RESPONSE 
 
The Report from the Expert Group points out high corporate tax rate, cumbersome 
administrative procedures in starting busi ness in Japan, and less human resources who 
h a v e  g l o b a l  w o r k  e x p e r i e n c e  a s  m a i n  i m pediments to FDI into Japan. The policies 
proposed by the report include, but are no t limited to, increasing transparency of 
businesses, providing Japanese young people with more opportunities to work or study 
abroad, accelerating economic partnerships  with other countries, and setting up a 
center to support foreign companies for hand ling all the procedures needed to start a 
business. The report is freely available on the Cabinet Office's website below. 
(http://www5.cao.go.jp/keizai-shimon/ka igi/special/investment/report_en.pdf. ) 
 
The Council for Promotion of Foreign Direct In vestment was established by Minister of 
State for Economic and Fiscal Policy's decision on April 25th, 2014. Its main mission is to 
have relevant government bodies facilitat e structural reforms.  The members of the 
council include Minister of State for Economic  and Fiscal Policy, Minister of State for 
Regulatory Reform, Minister for Foreign A ffairs, and Minister of Economy Trade and 
Industry. The Prime Minister can join the council any time, and the council can request 
other relevant Minister's attendance when needed. Its website is available only in 
Japanese for now. ( http://www.invest-japan.go.jp/promotion/index.html. ) 
 
In accordance with the government policy, JE TRO serves as Japan's one-stop center for 
attracting foreign companie s' investment to Japan. WT/TPR/M/310/Add.1 
 
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 25. OMAN 
Question 
 
Japan has bound 98.3% of its tariff lines. 159 lines remain unbound. When is Japan going to bind 
the remaining tariff lines? 
 RESPONSE 
 
Tariff concession in the WTO will be based on  the results of the future development of 
the negotiations in DDA. WT/TPR/M/310/Add.1 
 
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26. THAILAND 
Questions – Secretariat Report WT/TPR/S/310 
 
2. Trade and Investment Regime 
 
Page 23 (paragraphs 2.20-2.21) 
 
Question 1 
 
Under the designation of the six National Strategic Special Zones in Japan, please provide the forms/types and details of incentives provided by the government in order to attract foreign 
investment in these six zones.  
 RESPONSE 
 
The Act on National Strategic Special Zones (NSSZ) of 2013 includes regulatory reforms 
in the areas of medical care, employme nt, education, urban regeneration and 
development, agriculture, and utilization of  historic buildings. The examples are as 
follows: i) accelerated assessment procedur es for advanced medical treatment of 
medicines approved in six Western, which ha ve not yet been approved in Japan, in 
specific hospitals or medical centers, ii)  exceptional measures on regulations on 
numbers of bed for providing high-standard medical care services, iii) establishing 
Employment Consultation Center which provid es individual consultation service based 
on the "Employment Guidelines" (published in  April 2014), in order to support foreign 
companies and ventures business through clar ifying the conditions of employment and 
work, iv) deregulation of road occupati on for promoting and making MICE more 
attractive, and v) exceptional measures concerning agricultural production corporations 
so that private companies will enter newly in  agricultural business. In addition to 
regulatory reforms, tax reliefs  and interest subsidies are also introduced in the NSSZ. 
 Page 24 (paragraph 2.25) 
 Question 2   
 
Please specify the criteria of projects in order to apply for the Subsidy Program indicated in the 
paragraph and the details of the government's subsidy, i.e. how it is paid and other relevant information. Which government agency is responsible for this Subsidy Program?  
 
RESPONSE  The subsidy program is intended to sustain and strengthen high-value-added business 
sites in Japan and to achieve sustainable growth of the Ja panese economy by supporting 
the establishment of new high-value-added site s such as regional headquarters or R&D 
sites in Japan by global companies operat ing internationally and then promoting the 
accumulation of high-value-added business f unctions that match the strength of the 
Japanese economy. Projects eligible fo r the subsidy program shall be those for 
establishing a new regional headquarters or R&D sites in Japan. A main requirement for 
the subsidy program is that eligible companie s must have corporate status in Japan and 
must belong to a corporate body consisting  of group companies that are operating an 
actual business in two or more countries (i ncluding Japan). The amount of the subsidy 
under the program was \2 billion for FY2010 an d \500 million each year from FY2011 to 
FY2014. 
 Subsidized projects shall be determined fo llowing the results of the examination based 
on screening criteria such as uniqueness an d added value of the relevant sites by a 
third-party committee consisting of external experts. Ministry of  Economy, Trade and 
Industry (METI) is responsible for appropri ate implementation of the subsidy program. 
 WT/TPR/M/310/Add.1 
 
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 3. Trade Policies and Practices by Measure  
 Page 39 (Table 3.5) 
  
Question 3 
 
Currently, Thai entrepreneurs cannot access the details of the amended laws and regulations, 
especially the labeling regulations under the Ac t on Standardization and Proper Labeling of 
Agricultural and Forestry Products. Could Japan identify whether the Consumer Affairs Agency of Japan (CAA) has published such laws and regulations in English on its website? If so, please indicate the link. If not, please explain when such publication will be available. 
 
RESPONSE   
At present, there is no related laws and regulations translated into English on the 
Consumer Affairs Agency's (CAA) website. Ho wever, English translations of Japanese 
laws are available on the Japa nese Law Translation website 
(http://www.japaneselawtranslation.go.jp/?re=02 ) for reference. 
 
In the future, when the law is amended, Eng lish version of the laws will be available on 
the Japanese Law Translation website. 
 
Page 40 (paragraph 3.58) 
 
Question 4  
 
What are 33 kinds of "designated processed f ood" that need to be labeled under the Food 
Sanitation Act? 
 RESPONSE  
Thirty three items of "designated processed food" that need to be labeled under the 
Food Sanitation Act are shown in the following table:  
Farm products Processed food 
Soybeans (including immature 
soybeans and bean sprout) 1. Tofu (soybean curd) and Aburaage (fried soybean curd) 
2. Kooridofu (frozen soybean curd), Okara (dried Tofu refuse) and 
Yuba (dried soybean milk membrane) 
3. Natto (fermented soybeans) 
4. Soybean milk 
5. Miso (fermented soybean paste) 
6. Soybean Nimame (cooked soybeans) 
7. Canned soybeans and bottled soybeans 
8. Kinako (roasted soybean flour) 
9. Roasted soybeans 
10. Food made mainly from ingredie nts listed in item 1 to item 9 
11. Food made mainly from soybean for cooking 
12. Food made mainly from soybean flour 
13. Food made mainly from soybean protein 
14. Food made mainly from immature soybean 
15. Food made mainly from soybean sprouts 
Corn 1. Corn snack confectionery 
2. Corn starch 
3. Popcorn 
4. Frozen corn 
5. Canned corn and bottled corn 
6. Food made mainly from corn flour 
7. Food made mainly from corn grits (excluding corn flakes) 
8. Food made mainly from corn for cooking 
9. Food made mainly from ingredie nts listed in item 1 to item 5 WT/TPR/M/310/Add.1 
 
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Farm products Processed food 
Potato 1. Potato snack confectionery 
2. Dried potato 
3. Frozen potato 
4. Potato starch 
5. Food made mainly from potato for cooking 
6. Food made mainly from ingredie nts listed in item 1 to item 4 
Rapeseed  
Cottonseed  
Alfalfa Food made mainly from alfalfa 
Sugar beet Food made mainly from sugar beet for cooking 
papaya Food made mainly from papaya 
 
Page 49 (paragraph 3.101) 
  
Question 5  
 
Please specify the benefits/incentives received by the projects located in Comprehensive Special Zones for Local Revitalization. 
 
RESPONSE  
Taxable individual income deductions for private investors targeting the relevant 
regional projects for local revitalization are available.  
Page 64 (paragraphs 3.147-3.148) 
 
Question 6  
 
How do unregistered trademarks receive protection in Japan? What are the criteria in order to be 
eligible for such protection? Could Japan indicate the detail of the legislation/regulations under which those marks are protected? Please give examples of "some protection" those marks are 
eligible for. 
 RESPONSE 
 
I.  Unregistered trademarks receive pr otection under the Unfair Competition 
Prevention Act in Japan. An indication of  goods or business that is well-known among 
consumers receives the protection when a third party uses an indication that is identical 
or similar to the well-known indication and causes confusion among the consumers. Or, 
a famous indication of goods or business receiv es the protection if a third party uses an 
indication that is identical or similar to the famous indication. In this case, it does not 
require the creation of confusion. For exampl e, famous Japanese brand, Mitsubishi and 
famous high-end fashion brand, CHANNEL receive the protection, as the famous 
indication of business. 
 
II.  In addition to the Unfair Competition Prevention Act, in Japan's trademark system, 
there are some regulations to protect unregistered trademarks as follows:  
(1) No trademark shall be registered if th e trademark is identical with, or similar 
to, another person's trademark which is well known among consumers as that indicating goods or services in connectio n with the person's business, if such a 
trademark is used in connection with su ch goods/services or goods/services 
similar (Trademark Act, Article4 (1) (x)).  
(2) No trademark shall be registered if the trademark is likely to cause confusion 
in connection with the goods or services pe rtaining to a business of another person 
(Trademark Act, Article4 (1) (xv)).  
(3) No trademark shall be registered if the trademark is well known among 
consumers in Japan or abroad as that indi cating goods or services pertaining to a 
business of another person, if such trademark is used for unfair purposes 
(Trademark Act, Article4 (1) (xix)). WT/TPR/M/310/Add.1 
 
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 (4) Where a trademark has been used in Japan in connection with the designated 
goods or designated services of the trad emark for which the application is filed, 
without any intention to be engaged in unf air competition, from the time prior to 
the filing of such other person's applicat ion for the said trademark registration, 
and as a result, such trademark has be come well known among consumers, the 
person shall have the right to use the trademark as far as the said person 
continuously uses the trademark for th e goods or services.(Trademark Act, 
Article32). 
 Question 7 
 
Does the amendment of the Trademark Act in 2014 which extends the scope of protection include 
scent marks? If that is not the case, please explain why not.  
RESPONSE 
 The Government of Japan considers that it is  difficult, at the current stage, for JPO to 
determine the scope of protection of the tr ademark of "smell" and examine them with 
objectivity and predictability. Therefor e, it needs further consideration.  
 Question 8 
 Does the amendment of the Trademark Act in 2014,  which expands the scope of eligible entities 
who can register the regional collective trademarks, include provinces which have juristic-person 
status? 
 RESPONSE 
 
The Trademark Act in 2014 was amended in 2014 to expand the scope of eligible entities 
of regional collective trademarks by addi ng associations of commerce and industry, 
chambers of commerce and industry, and spec ified non-profit corporations. However, 
the local authorities are excluded fr om the scope of eligible entities. 
 4. TRADE POLICIES IN SELECTED SECTORS  
 
Page 73 (paragraph 4.17) 
 
Question 9 
 
Does Japan have any plan to reduce tariff peak in agricultural products and/or to change the non-ad valorem  tariffs to ad-valorem ones in order to  increase market access and transparency? 
 
RESPONSE  
Whether Japan further reduces tariffs for ag ricultural products depends on various 
factors, such as future DDA negotiations. As  for non ad-varolem tariffs on agricultural 
products, Japan presently has no plans to change these to ad-varolem tariffs. 
 
Page 73 (paragraph 4.19) 
 Question 10 
 Does Japan have any plan to deal with the pr oducts of which the fill rates are below 40%?  
 
RESPONSE 
 Japan operates TRQs in consistent with the WTO Agreement and enforces it in a fair and 
transparent manner. The underfill of TRQs for some products is mainly due to the 
decline of their domestic consumptions rela ted to these TRQs. Under such situation, a 
scheme of reallocation has been implemen ted for the purpose of utilizing unused quota.  
 WT/TPR/M/310/Add.1 
 
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Page 77 (paragraphs 4.42-4.43) 
 Question 11 
 
Could Japan please elaborate on how it determines the administered prices applied to pig meat, 
beef, and calves? When comparing the administered prices with the market price, what is the usual difference between them? 
 
RESPONSE  The market prices of beef, pork and calf fl uctuate only in accordance with the supply-
demand situation, however, mitigating the vola tility of the market price is necessary for 
both our farmers and consumers. The administered prices are used as the(a) benchmark for price stabilization and calculated as fo llows as referred in the report of the 
secretariat (paragraphs 4.42-4.43). 
 The upper and the lower stabilization price of beef and pork are calc ulated as the range 
of wholesale prices taking into consider ation annual production cost, current supply-
demand situation and other factors.  For calves, the guaranteed price and the targ et rationalization price are calculated for 
each cattle breed every year. The guaranteed price is calculated as the price ensuring 
the reproduction of calves, based on sales pr ice of calves before the liberalization of 
beef import in 1991 taking into consideration change of economic situation thereafter to 
ease the impact of the liberalization. The targ et rationalization price is calculated as a 
beef price that is competitive with an imported  one, taking into account rational cost for 
raising calves up to their shipment.  
 
Questions – Government Report WT/TPR/G/310 
 Page 3 (paragraph 1.5) 
 Question 12  
 
Please clarify if the Japanese Government has any requirements regarding the employment of local 
workers. Please also clarify if there is any requir ement on foreign shareholding in doing business in 
Japan. If so, please specify the relevant law and/or regulations for those requirements. 
 
RESPONSE  The details of the requirements vary according to  the sectors, and it is difficult to list all 
the requirements here. Please refer to th e Japan's schedule of commitments under 
GATS.  
Page 4 (paragraph 1.6) 
  
Question 13   
 
Please indicate the law or regulation(s) which Japan implements in order to promote outward direct investment and/or to provide other subsidy incentives, if any, by the Japanese Government, for example, tax incentives. 
 
RESPONSE  
The Government of Japan facilitates outwar d investment by concluding International 
Investment Agreements (IIAs) and Investment Chapters of EPA/FTAs. 
 WT/TPR/M/310/Add.1 
 
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 Pages 12-13 (paragraphs 3.1-3.4) 
 
Question 14   
 
Please indicate which countries, LDCs and in the Asia-Pacific region, for which Japan has provided 
"Aid for Trade." What are the areas of "Aid for Trade" that Japan provides assistance?  
 
RESPONSE 
 T o  d a t e ,  J a p a n  h a s  p r o v i d e d  " A i d  f o r  T r a d e "  t o  m o r e  t h a n  1 5 0  c o u n t r i e s  w o r l d w i d e ,  including Asian countries (India, Viet Nam, Mongolia, etc., and all 9 LDCs <Afghanistan, 
Yemen, Cambodia, Nepal, Bangladesh, East ern Timor, Bhutan, Myanmar and Laos>), 
African countries (Ethiopia, Burkina Faso, Bo tswana, etc.) and South Central American 
countries (Peru, Honduras, Nicaragua, etc.). 
 
Japan has been providing extensive and co ntinuous assistance. Japan has provided 
funds for the development of transportation networks vital to trade, including ports, 
roads, and bridges, as well as for projects to construct power plants and power grids, 
etc. It also provides technical cooperat ion in trade-related areas, including the 
education of customs officials. Japan plans on  the remaining the largest "Aid for Trade" 
donor nation.  
 
Other Questions 
 
Question 15   
 
Please respond to the following questions regarding "well-known trademarks": 
 
1.  What are the criteria to be eligible for a protection of well-known trademarks in Japan?  
 2.  How does Japan define "well-known" trademarks? 
 
3.  How do well-known trademarks
 receive such protection in Japan? What kinds of protection 
are available to well-known trademark owners? 
 
4. Is well-known  geographical indications of a member considered as well-known trademarks in 
Japan?  If that is not the case, do such well-known GIs enjoy similar protection to those of well-
known trademarks? Please explain. 
 RESPONSE  
1.  Please see the answer to the Question 6. 
 2.  "Well-known" trademarks are defined as an indication that is widely known 
among consumers, not necessarily well-known all over the Japan, but enough that is 
well-known in a local area of Japan.  
3.  Under the Trademark Act, please see the answer to the Question 6. Under the 
Unfair Competition, civil (injunction and damage remedy) and criminal protection. 
 4.  Under the Trademark Act, well-know n geographical indications can receive 
similar protection if the GI corresponds  to trademark under the Trademark Act.  WT/TPR/M/310/Add.1 
 
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27. COLOMBIA 
Informe del Gobierno WT/TPR/G/310 
 
3 Comercio y Desarrollo 
3 Trade and Development 
3.1 Ayuda para el comercio 3.1 Aid for Trade  
Asistencia al movimiento "Una aldea, un producto" 
Assistance to the One Village, One Product Movement  El párrafo 3.7 del informe del Gobierno indica que …  "El Japón sigue apoyando este movimiento, 
en particular las exportaciones de los países en desarrollo y de los países menos adelantados, 
mediante la cooperación técnica -por ejemplo, el envío de expertos y la organización de programas de enseñanza y formación para desarrollar productos competitivos- y mediante la ayuda que 
presta a través de las organizaciones internacionales. Además, desde 2006 organiza exposiciones 
y ferias comerciales a las que ha invitado a compradores y ha establecido tiendas "Una aldea, un producto" en algunos de sus aeropuertos intern acionales, a fin de presentar los productos y 
promover su compra". 
 Under the paragraph 3.7, Japan continues supporting this movement, especially the exports of developing countries and 
least developed countries through technical cooperation such as the dispatch of experts, 
educational and training programs to create competitive products, and support through international organizations. In addition, Japan has held exhibitions and trade fairs inviting buyers 
and has also opened shops (OVOP markets) since 2006 in some of Japan's international airports in 
order to introduce products and encourage shopping.  
1. ¿Podría el Gobierno de Japón informar si ha hecho evaluación de los resultados de estos 
programas? ¿Indicar productos desarrollados y montos producidos, vendidos y/o exportados? ¿Países y productos involucrados en esta iniciativa?  
1.  Can the Government of Japan report if it has evaluated the results of these programs? Can 
you indicate products developed and amounts produced, sold and/or exported? Countries and products involved in this initiative? 
 
RESPONSE  
The One Village One Product (OVOP) campaign is  just one approach under the Initiative. 
O V O P  i s  a  m o v e m e n t  t h a t  p r o m o t e s  l o cal economies through the development, 
improvement and promotion of local products (foods, beverages, textiles & garments, 
etc.) with the participation of local people . This movement was first initiated in a 
southern prefecture in Japan in the late '70s and spread to other prefectures later on. It 
has been introduced to and has contributed to the development of local economies in 
other Asian countries. 
  
Presently, the government of Japan is suppo rting these movements, especially exports 
from developing countries and least developi ng countries, through technical cooperation 
such as the dispatch of experts, as well as via educational and training programs to 
develop competitive products. In addition, after arranging buyers, the government of 
Japan has held exhibitions and trade fairs, and is now opening shops (OVOP markets) at 
international airports in Japan to exhibi t and sell local products from developing 
countries: products include items such as  natural soap, stationary, and clothing. 
 These products are being introduced at ex positions in Japan, and also in shops at 
international airports in Narita and Kansai . These expositions are occasions for Japan's 
importers and consumers to see the products directly. Since the establishment of the shops, 359 items have been displayed from a total of 59 countries, with sales totalling 
330 million yen. Approximately one and half million people have already visited the 
shops.  
 WT/TPR/M/310/Add.1 
 
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 2.4 Otros acuerdos regionales y bilaterales 
2.4 Other regional/Bil ateral arrangements 
2.4.1 Foro de Cooperación Económica de Asia y el Pacífico (APEC) 2.4.1 Asia-Pacific Economic Cooperation (APEC) 
 
El párrafo 2.17 del informe de Gobierno señala que… "La misión fundamental del APEC sigue 
siendo promover la interacción económica, regional y la expansión del comercio en la región de 
Asia y el Pacífico. En 2014, el APEC trató de alcanzar esos objetivos mediante el desarrollo de las 
cadenas de valor mundiales y la conectividad de la cadena de suministro, y abordando cuestiones de comercio e inversión "de nueva generación", en particular a través de sus acuerdo comerciales y de la promoción de una Zona de Libre Comercio de Asia y el Pacífico (FTAAP), que es un 
importante instrumento para impulsar el programa de integración económica regional del APEC. A 
este respecto, el Japón tomo la iniciativa en la esfera de los servicios relacionados con las manufacturas incluidos en cadenas de suministro o de valor, una de las cuestiones de comercio e 
inversión "de nueva generación", con el objetivo  de hacer avanzar en 2014 la Zona de Libre 
Comercio de Asia y el Pacífico (FTAAP) de conformidad con la Hoja de Ruta de Beijing para la contribución del APEC a la consecución de la FTAAP. En el marco del plan estratégico del APEC 
para la promoción del desarrollo de las cadenas de valor mundiales y la cooperación en las 
mismas, el Japón ha tomado asimismo la iniciativa en dos líneas de trabajo: la mejora del clima de inversión para el desarrollo de las cadenas de valor mundiales y la mejora de la capacidad de recuperación de las cadenas de valor mundiales. Además, el Japón ha trabajado para promover los 
objetivos de crecimiento verde y desarrollo sostenible del APEC, tomando la iniciativa en materia 
de bienes ambientales y contribuyendo a crear capacidad con vistas al cumplimiento de los compromisos asumidos en 2012 por los dirigentes de la APEC en relación con la lista de bienes 
ambientales del APEC (54 productos), cuyo objetivo es reducir los tipos arancelarios aplicados al 
5% o menos para finales de 2015, teniendo en cuenta las circunstancias económicas de cada economía." 
 
Under the paragraph 2.17, APEC's core mission continues to be further regional economic integration and expansion of trade in the Asia-Pacific region. APEC has pursued these objectives in 2014 by advancing Global Value 
Chains and Supply Chain Connectivity, and addressing next-generation trade and investment 
issues, including through our trade agreements and the Free Trade Area of the Asia-Pacific 
(FTAAP), which is a major instrument to further APEC's regional economic integration agenda. In 
this regard, Japan took the lead in manufacturing related services in supply chains/ value chains 
as one of the next generation trade and investment issues to advance the FTAAP in line with the agreed "Beijing Roadmap for APEC's Contribution to the Realization of the FTAAP" in 2014. Japan 
also took the lead in two work streams, namely "Improve the investment climate for GVCs 
development" and "Enhance resiliency of GVCs" under the "APEC Strategic Blueprint for Promoting 
Global Value Chain Development and Cooperation" . In addition, Japan has pursued the advance of 
APEC green growth and sustainable development ob jectives by taking the lead in environmental 
services and contributing to capacity building  for implementation of the 2012 APEC Leaders' 
commitments on the APEC List of Environmental Goods (54 items), which aim to reduce applied tariff rates to 5% or less by the end of 2015, taking into account each economy's economic 
circumstances. 
 2. Teniendo en cuenta las líneas de trabajo qu e ha implementado Japón en relación con la 
promoción del desarrollo de las cadenas de valor mundiales y la cooperación en las mismas, ¿cuál 
es la estrategia para desarrollar la línea de mejora del clima de inversión de las cadenas de valor mundiales?  
2. Considering the lines of work that Japan has implemented in relation to promoting the 
development of global value chains and cooperation in these, what is the strategy to develop the 
line of improving the investment climate of the global value chains? 
 
RESPONSE  
Promoting sustainable development and growth  o f  t h e  A P E C  r e g i o n  i s  i m p o r t a n t  t o  
develop more efficient global value chains. In  order to lead the discussion on improving 
business environment, Japan registered as the lead economy of workstream6, 
"Improving the investment climate for GVCs Development", under the GVCs strategic 
blueprint which was endorsed by the APEC leaders last year.  WT/TPR/M/310/Add.1 
 
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As a follow-up, Japan has drafted a work pl an which proposes to conduct a survey to 
take stock of the present stat e of investment climate in the region. This survey will not 
only focus on the legal and regulatory aspe cts of the investment climate but also the 
operational aspects of these laws and regulati ons. Based on the results, an action plan 
will be developed for further impr oving the investment climate. 
 Informe de la Secretaría WT/TPR/S/310 
Report by Secretariat  
 Resumen (Summary)  
En el párrafo 12 del informe de la Secretaría señala que ... "Japón ha introducido algunos cambios 
en su régimen de contratación pública, básicamente para excluir de la participación en las licitaciones públicas a aquellas partes que, entre otras cosas, intencionadamente efectúen trabajos 
de construcción o presten servicios de calidad deficiente, o facturen una cantidad excesiva por una 
documentación falsa relativa a los contratos. El Japón también ha reducido recientemente algunos de sus umbrales para la contratación de bienes y servicios en el marco del Acuerdo sobre 
Contratación Pública". 
 Under summary, paragraph12, Japan made some changes to its government proc urement framework, basically to preclude from 
participation in open tendering parties who, inter alia, intentionally execute construction works or 
services with poor workmanship, or overcharge by false reporting contracts. Japan also recently lowered some of its thresholds for goods and services under the GPA. 
 
3. Dado que Japón es signatario del Acuerdo sobre Contratación Pública (ACP) el cual es el 
principal instrumento que utiliza la OMC para incorporar los principios de transparencia y no 
discriminación en las compras públicas, ¿cuáles son los cambios que se han dado en el régimen de 
contratación pública y cómo se garantiza la no discriminación y transparencia en los contratos públicos del gobierno japonés?  
3. Since Japan is a signatory to the Agreement on Government Procurement (GPA), which is 
the main instrument used by the WTO to incorporate the principles of transparency and non-discrimination in public procurement, what are the changes that have occurred in the public 
procurement regime and how are non-discrimination and transparency guaranteed in public 
contracts of the Japanese government?  
RESPONSE 
 With the entry into force of the Revised GPA, the GOJ amended some provisions of government ordinances last year. However, Japan has not changed its basic government 
procurement implementation regime in the past two years and maintains a non-
discriminative and transparent government pr ocurement system based on relevant laws 
and regulations as detailed below. 
 
Numerous domestic laws and ordinance have  been enacted to establish procurement 
procedures that reflect the principles of transparency and non-discrimination. These 
include the Accounts Law, the Cabinet Orde r Concerning the Budget, Auditing and 
Accounting, and the Special Provisions for the Cabinet Order Concerning the Budget, 
Auditing and Accounting and the Local Autonomy Law.  
Besides these domestic laws and regulation s, procurement procedures under the GPA 
are ensured through the Cabinet Order Stipulating Special Procedures for Government Procurement of Products or Specified Serv ices in the case of government, and the 
Cabinet Order Stipulating Special Procedur es for Local Government Procurement of 
Products or Specified Services in the case of sub-central government. 
  
As for the other entities covered in the GPA,  they set out their own internal regulations 
which are consistent with the GPA, to ensure implementation of procurement 
procedures under the GPA that reflect the principles of transparent and non-discrimination in their procurement.  WT/TPR/M/310/Add.1 
 
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 El párrafo 15 del informe de la Secretaría indica que …  "A pesar de los cambios introducidos en los 
programas agrícolas durante los últimos años, las ayudas y la protección al sector agrícola en el Japón siguen siendo elevadas en comparación con otros países y se otorgan a través de un amplio conjunto de políticas. Aunque el gobierno ha seguido prestando una atención cada vez mayor a los 
programas de sostenimiento de los ingresos, el componente principal son los programas de 
sostenimiento de los precios que, junto con otras transferencias basadas en la producción y los insumos, constituyen una de las formas de ayuda que más pueden distorsionar la producción y el 
comercio." 
 Under summary, paragraph12, 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 is provided by a 
comprehensive set of policies. While the government has continued to move toward income support, market price support is the main component and it, along with other transfers based on 
output and inputs, is potentially one of the most production and trade-distorting forms of support.   
 4 ¿Cómo controla Japón que los cambios introducidos en sus programas agrícolas no afectan 
de manera directa el mercado agrícola mundial? 
 4. How does Japan control that changes in its agricultural programs do not directly affect the 
global agricultural market? 
 
RESPONSE  
The Government of Japan has reviewed its ma rket price support policies and introduced 
and expanded direct payments by, for exampl e, abolishing the national food control 
system in 1994, specifying a review of ma rket price support policies and implementing 
income support direct payment programs in  the Basic Law on Food, Agriculture and 
Rural areas in 1999, and implementing Cross- item management stabilization measures 
in 2007. The Japanese-style direct payment including the payment for multifunctionality 
of agriculture was newly introduced as one of  such direct payments. Japan will continue 
to pursue structural reform which fits  the agricultural situation in Japan. 
 2. Régimen de Comercio e Inversión 
2. Trade and Investment Regime 
2.4 Régimen de inversión 2.4 Investment Regime  
 
El párrafo 2.25 del informe de la Secretaría indica que…  "El Programa de subvenciones de 
proyectos que fomenten la inversión extranjera directa, el establecimiento de empresas y el desarrollo regional en el Japón (Proyecto para el establecimiento de empresas internacionales), 
aprobado en el ejercicio económico de 2014, prevé la concesión de subvenciones de hasta 
500 millones de yenes para sufragar los gastos asociados a la realización de estudios y a la compra o alquiler de instalaciones y equipos de empresas internacionales que establezcan sedes 
regionales o centros de investigación y desarrollo en el Japón. Se han seleccionado siete proyectos 
para el ejercicio económico de 2014. En los programas equivalentes aplicados durante los ejercicios económicos de 2012 y 2013 se seleccionaron cuatro proyectos cada año…" 
 
Under the paragraph 2.25, 2.25. The FY2014 Subsidy Program for Projects Promoting Foreign Direct Investment, Site Location and Regional Development in Japan (Project of site location for global companies) 
provides subsidies of up to ¥500 million for the costs of survey design, purchasing or leasing 
facilities and equipment for global companies establishing regional headquarters or research and development sites in Japan. Seven projects were selected in FY2014. Four projects were selected 
in each year under the equivalent FY2012 and 2013 programmes. 
 5 ¿Podría el Gobierno de Japón comentar cuáles son los requisitos para que un proyecto sea 
elegido en el programa de subvenciones para aumento de la inversión extranjera directa?  
 5. Can the Government of Japan comment on what the requirements are in order for a project 
to be elected in the subsidy program to increase direct foreign investment? WT/TPR/M/310/Add.1 
 
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RESPONSE 
 The subsidy program is intended to sustain and strengthen high-value-added business sites in Japan and to achieve sustainable growth of the Ja panese economy by supporting 
the establishment of new high-value-added site s in Japan by global companies operating 
internationally, such as regional headquarters  or R&D sites and by inviting and building 
high-value-added business functions that matc h the strength of the Japanese economy. 
Projects eligible for the subsidy program sha ll be those for establishing a new regional 
headquarters or R&D sites in Japan. Eligible  companies must have corporate status in 
Japan and must belong to a corporate body consisting of group companies that are operating an actual business in two or more countries (including Japan). In principle, 
consideration in project screening is made in  light of the purpose and requirements of 
the subsidy program stated above.  
 
6. ¿Se ha incluido en el programa de subvenciones para el aumento de la inversión extranjera 
directa algún proyecto de un país en Desarrollo?  
6. Has any project of a developing country been included in the subsidy program to increase 
direct foreign investment?  RESPONSE 
 
No, projects eligible for the subsidy prog ram shall be those for establishing a new 
regional headquarters or R&D sites in Japan, not to the projects of developing countries. 
 
El párrafo 2.26 del informe de la Secretaría señala que ... "El Japón ha concertado acuerdos 
bilaterales sobre inversiones con 32 países o territorios y 10 acuerdos comerciales bilaterales que 
incluyen disposiciones en materia de inversiones (cuadro 2.3)." " Cuadro 2.3 Tratados 
bilaterales sobre inversiones en vigor"  Under the paragraph 2.26, 
2.26. Japan has bilateral investment treaties with 32 countries/territories, including ten bilateral 
trade agreements which include investment provisions (Table 2.3)."Table 2.3 Bilateral investment treaties in force" 
 
3 Políticas y Prácticas Comerciales, por Medidas. 3 Trade Policies and Practices by Measure 
3.1 Medidas que afectan directamente a las importaciones 
3.1 Measures directly affecting imports 3.1.4 Aranceles 3.1.4 Tariffs 
3.1.4.1 Arancel NMF aplicado 
3.1.4.1 MFN applied tariff  
El párrafo 3.18 del informe de la Secretaría menciona que… "Hay 161 líneas arancelarias (el 1,8% 
del total) sujetas a contingentes arancelarios en régimen NMF: 150 están sujetas a tipos aplicados fuera de los contingentes y 11 líneas objeto de comercio de Estado también sujetas a esos tipos 
(se excluyen las líneas sujetas a tipos aplicados dentro de los contingentes). Los tipos aplicados 
fuera de los contingentes a 38 líneas arancelarias son ad valorem . Los tipos medios difieren 
considerablemente: el tipo medio aplicado dentro de los contingentes es el 18,1%, en tanto que el aplicado fuera de los contingentes es el 67,1%. El método y el proceso de asignación de los 
contingentes siguen siendo algo complejos (sección 4.1).  
 Under the paragraph 3.18, 
There are 161 tariff lines (1.8%) subject to MFN tariff quotas: 150 out-of-quota tariffs and 11 out-
of-quota tariffs of state trading (in-quota lines are excluded). The out-of-quota rates for 38 tariff lines are ad valorem . The average rates differ considerably: in-quota rates average 18.1%, while 
out-of-quota rates average 67.1%. The quota allocation method and process remains somewhat 
intricate (section 4.1).  7. ¿Puede explicar Japón de manera detallada cómo se administran los contingentes, en 
particular de productos lácteos? WT/TPR/M/310/Add.1 
 
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 7. Can you explain Japan in detail how quotas are administered, particularly dairy products? 
 RESPONSE  
The quotas of dairy products are administrate d by Ministry of Agriculture, Forestry and 
Fisheries.  
The quotas are allocated to users by taking into account of the factors such as their 
planned annual usage in the current year.  The details of the administration of tariff quot as is explained in Japan's notification to 
the WTO (G/AG/N/JPN/91). 
 3.1.7 Normas y otras prescripciones técnicas 
3.1.7 Standards and other technical requirements 
 El párrafo 3.32 del informe de la Secretaría … "El marco jurídico de las normas y los reglamentos 
técnicos del Japón apenas ha variado desde su último examen. Las principales leyes relativas a la 
aplicación del Acuerdo sobre Obstáculos Técnicos al Comercio (Acuerdo OTC) en el Japón, junto con el organismo competente […]."  
Under the paragraph 3.32, 
The legal framework on standards and technical regulations in Japan has remained largely unchanged since its last review. The main laws for implementing the TBT Agreement in Japan, 
together with the agency responsible, […]. 
 8. ¿Ha realizado Japón Análisis de Impacto Normativo en la elaboración, adopción y aplicación 
de la reglamentación técnica? De ser así, ¿Qué resultados ha obtenido y cuáles podrían ser las 
lecciones para Colombia?  8． Has Japan carried out a Regulatory Impact Analysis in the preparation, adoption and 
application of technical regulations? If so, what results have been obtained obtained and what 
could be lessons for Colombia? 
 
RESPONSE  
Japan use Regulatory Impact Analysis (RIA ) as a means of ex-ante Evaluation of 
Regulations. Japan conducts ex-ante Evaluation  of Regulations on technical regulations, 
where technical regulations fall within the scope defined by Article 3 of the Cabinet 
Order for Enforcement of the Government Policy Evaluation Act.   
 Cabinet Order for Enforcement of th e Government Policy Evaluation Act 
 
Article 3 
(vi) Policy pertaining to introduction and abolishment of regulation (any effects of 
restricting the rights of the public or imposi ng obligations on the public (excluding any 
effects pertaining to taxation, judicial proceedings, procedures for application for 
subsidies, and other administrative acts to be  specified by the Ordinance of the Ministry 
of Internal Affairs and Communications; herein after the same shall apply in this item)), 
and review of regulation (excluding any mi nor changes in the kind, reporting items or 
form of documents to be submitted, and any other changes to be specified by the 
Ordinance of the Minister of  Internal Affairs and Communications as unlikely to have 
considerable effects on the lives of the pub lic or the social economy) by the enactment, 
or revision or abolition of  a law or a Cabinet Order. 
 The results of ex-ante Evaluation of Regula tions on technical regulations are published 
at the following websites, for example (Available in Japanese). 
 http://www.meti.go.jp/policy/policy_ management/top-files/jizen-top.htm  
http://www.mhlw.go.jp/wp/se isaku/ria/26/index.html.  WT/TPR/M/310/Add.1 
 
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9． ¿Cuál es la definición de "normas internacionales" que utiliza Japón para la elaboración, 
adopción y aplicación de la reglamentación técnica y los procedimientos de la evaluación de la conformidad, con base en lo establecido en el numeral 2.4 del Acuerdo OTC de la OMC?
10 
 
9. What is the definition of "international standards" used by Japan for the preparation, 
adoption and application of technical regulations and procedures of the conformity assessment, 
based on the provisions of numeral 2.4 of the OTB Agreement of the WTO? 
 RESPONSE 
 
Although Japan does not have a common de finition of "international standard", 
standards and conformity assessment proc edures set by following international 
organization are accepted as they are or  used as a basis for preparing technical 
regulations, etc., for example.  
 ISO (International Organiza tion for Standardization), 
IEC (International Electr otechnical Commission),  
CAC (Codex Alimentarius Commision)  
 
10． ¿Cuál ha sido el resultado por parte de Japón de la aplicación del numeral 6.3 del Acuerdo 
OTC de la OMC
11, en términos del número de Acuerdos de Reconocimiento Mutuo (ARM) firmados 
con otros Miembros? ¿Con cuáles países en desarrollo?  
 10. What has been the result for Japan from  the application of Numeral 6.3 of the TBT 
Agreement of the WTO, in terms of number of Mu tual Recognition Agreements (MRA) signed with 
other Members? With which developing countries? 
 RESPONSE 
 
Apart from whether or not they are resulted from application of article 6.3 of the TBT 
Agreement, Japan has bilateral Mutual Re cognition Agreements (MRAs) between the 
United States, European Union, Singapore, Philippines and Thailand, etc., respectively.  
 El párrafo 3.42 del informe de la Secretaría señala que … "Son 7.873 fábricas nacionales y 
859 fábricas extranjeras de 21 países y economías las que han sido certificadas para utilizar 
marcas JIS (Sistema de marcas JIS). Este sistema es voluntario, a menos que los reglamentos 
pertinentes lo exijan para las ventas en el país. Las autoridades afirman que las fábricas nacionales y extranjeras reciben el mismo trato con respecto a la certificación de las marcas JIS, y 
que el Sistema de marcas JIS está armonizado a escala internacional sobre la base de la norma 
ISO/CEI 17065. En octubre de 2014 había 24 organizaciones acreditadas como organismos de certificación de esas marcas." 
 
Under the paragraph 3.42, Approximately 7,873 domestic and 859 foreign factories in 21 countries and economies are certified to affix JIS marks (JIS Mark scheme). The JIS Mark scheme is voluntary unless relevant 
regulations require JIS for domestic sales. 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 2014, 
24 organizations were accredited as JIS mark certification bodies. 
 11．  ¿Podría Japón suministrar información en mayor detalle sobre el sistema de marcas JIS?; se 
equipara a las marcas de certificación? 
 11. Can Japan provide information in greater detail on the JIS mark system? Is this equated 
with certification marks? 
                                               
10 Cuando sean necesarios reglamentos técnicos y existan normas internacionales pertinentes o sea 
inminente su formulación definitiva, los Miembros utili zarán esas normas internac ionales, o sus elementos 
pertinentes, como base de sus reglamentos técnicos, […]  
11 "Se insta a los Miembros a que acepten, a petici ón de otros Miembros, entablar negociaciones 
encaminadas a la conclusión de acuerdos de mutuo re conocimiento de los resultados de sus respectivos 
procedimientos de evaluaci ón de la conformidad […].  WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 JIS Mark system is a product certification system for industrial and mineral products 
based on the Industrial Standardization La w. Certification body accredited by the 
competent minister verifies whether the pr oduct conforms with JIS and whether the 
factory has appropriate qualit y management system. As a re sult of verification, the 
applicant is allowed to put JIS mark on the products.  
Please refer to http://www.jisc.go.jp/eng/jis -mark/pdf/JISpamphlet.pdf,  for more 
information. 
 3.2.3 Prohibiciones, restriccion es y licencias de exportación 
3.2.3 Export prohibitions, restrictions, and licensing 
 El párrafo 3.77 del informe de la Secretaría señala que ... "En virtud de la Ley de Aduanas, se 
aplican prohibiciones de exportación a una gama limitada de productos: estupefacientes y otros 
fármacos determinados; pornografía infantil; artículos que infringen los derechos de propiedad intelectual; y determinados artículos que constituyan competencia desleal con arreglo a la Ley de 
prevención de la competencia desleal (fundamen talmente, relacionada también con los derechos 
de propiedad intelectual)."  Under the paragraph 3.77, 
Under the Customs Act, export prohibitions appl y to a limited range of products: narcotics and 
certain other drugs; child pornography; articles which infringe intellectual property rights; and certain articles that constitute unfair competit ion under the Unfair Competition Prevention Act 
(essentially related to intellectual property rights as well) 
 12． ¿Qué prohibiciones aplican a la exportación de artículos que infringen derechos de propiedad 
intelectual?  
 
12. What prohibitions apply to exports of good s infringing on intellectual property rights? 
 RESPONSE  
The Customs Act stipulates that a person who has exported the goods infringing 
intellectual property  rights shall be liable to imprisonme nt with labour for up to 10 years 
or a fine not exceeding ten million yen, or to both.  
 
13． ¿Bajo qué mecanismos se determina que estos artículos son infractores? .Se extiende las 
mismas preguntas sobre los artículos que constituyen competencia desleal. 
 13. Under what mechanisms is it determined that these items are offenders? The same 
questions are made in regard to items that constitute unfair competition. 
 RESPONSE  
The Customs Act stipulates export prohibition of certain goods, exportation of which is 
originally prohibited under other domestic laws, including the Unfair Competition 
Prevention Act and laws on intellectual proper ty rights, with a view to having the goods 
strictly controlled by the Cu stoms at the border. The goods under the said export 
prohibition under the Customs Act are determ ined based on social conditions and other 
factors. 
 
3.3.2 Subvenciones y ayudas 3.3.2 Subsidies and support  
El párrafo 3.115 del informe de la Secretaría señala que ... " En noviembre de 2014 había en el 
Japón 98 entidades administrativas constituidas en sociedades. Muchas de ellas llevan a cabo actividades de investigación y algunas desempeñan  funciones oficiales normalmente reservadas al 
Estado, por ejemplo en el ámbito de los archivos o las estadísticas nacionales. No obstante, 
algunas de esas entidades se ocupan aparentemente del suministro de bienes y servicios que las autoridades consideran que el sector privado no podría realizar adecuadamente, como ocurre en el 
caso de algunas de las funciones de NEXI (sección 3.2.4), la Corporación de los Sectores Agrícola y WT/TPR/M/310/Add.1 
 
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Ganadero (ALIC) (sección 4.1.2.3; la ALIC ha si do notificada a la OMC como empresa comercial del 
Estado) y el Organismo de Financiación de la Vivienda del Japón. En el cuadro A3.2 figura una lista completa de las entidades administrativas constituidas en sociedades.  
Under the paragraph 3.115, 
As at November 2014, there were 98 incorporated  administrative agencies in Japan. Many are 
engaged in research, and some carry out official fu nctions usually reserved for the State, such as 
national archives and national statistics. However, some of them appear to be engaged in delivery 
of goods and services which the authorities believe would not be adequately provided by the private sector. These include some of the functi ons of NEXI (section 3.2.4), the Agriculture 
Livestock Industries Corporation (ALIC) (section 4.1.2.3, which has been notified to the WTO as a 
state trading enterprise), and the Japan Housing Finance Agency (JHF). A full list of incorporated 
administrative agencies is in Table A3.2.  
14． ¿Puede explicar Japón porque las importaciones de azúcar, lácteos, deben pagar un 
impuesto a la ALIC, adicional al arancel que se paga a la aduana. El gravamen que se paga a ALIC 
está de conformidad de los compromisos de Japón ante la OMC? 
 14. Can you explain Japan why imports of sugar, dairy, must pay a tax to the ALIC, in addition 
to the tariff paid to customs. Is the tax paid to ALIC in accordance with Japan's commitments to 
the WTO?  RESPONSE 
 
Collecting levy and mark-up for some sugar and dairy products are specified in the 
Japan's Schedule. 
They are therefore in accordance with Japan's commitments to the WTO.  
 3.3.4.2 Exenciones de la prohibición de los cárteles 
3.3.4.2 Exemptions from prohibition of cartels 
 El párrafo 3.124 del informe de la Secretaría señala que ...  "En el cuadro 3.17 se resumen las 
exenciones de la prohibición de los cárteles previstas en la Ley Antimonopolio y en otras leyes; de 
conformidad con estas disposiciones, actualmente hay 22 prácticas exentas en el marco de 
16 leyes … Cuadro 3.17 Exenciones en virtud de la Ley Antimonopolio y de diversas leyes".  
Under the paragraph 3.124, 
Table 3.17 summarizes the exemptions for the prohibition of cartels contained under the AMA and individual laws; 22 practices under 16 laws are now exempt under these provisions. 
 
15
． ¿Qué exenciones en virtud de la ley antimonopolio aplican actividades en el marco de 
derechos de propiedad intelectual? 
 15. What exemptions under the antimonopoly law do activities under the framework of intellectual property rights apply? 
 
RESPONSE  
Article 21 of the Antimonopoly Act prescribes: "The provisions of this Act shall not apply 
to such acts recognizable as the exercise of  rights under the Copyright Act, the Patent 
Act, the Utility Model Act, the Design Act, or the Trademark Act". Thus, such acts 
recognizable as the exercise of intellectua l property rights are exempted from the 
application of the AMA. Since no cartel conduct is included in the acts recognizable as the exercise of intellectual property rights , such conduct shall not be subject to the 
exemption under Article 21 of the Antimonopoly Act. 
 
16． ¿En qué consisten los "Cárteles para la recaudación de derechos por la utilización secundaria 
de fonogramas comerciales" de acuerdo con la exención establecida en la ley de derecho de autor? 
 16. What do the "Cartels for the collection of  royalties for the secondary use of commercial 
phonograms" consist of, in accordance with that established in the copyright law? WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 The Copyright Act 95 (13) stipulates that th e provisions of the Act on Prohibition of 
Private Monopolization and Maintenance of Fair  Trade shall not apply to the consultation 
for determining the amount of the secondary use fee, between the rightholders' 
association designated by the Government  pursuant to the Copyright Act and the 
broadcasting organization, in order to se cure effective exerci se of right and the 
convenience of users. 
 The exemption is justified, due to the fact  the number of rightholders and users are so 
many that it is impossible for individual  rightholder to negotiate and determine the 
amount of the secondary use fee with, as  well as collect it from the user.  
 3.3.5 Derechos de propiedad intelectual (DPI) 
3.3.5 Intellectual property rights (IPRs) 
3.3.5.1 Panorama general 3.3.5.1 Overview 
 
El párrafo 3.130 del informe de la Secretaría señala que …  "El 7 de junio de 2013, la Oficina 
Central de Estrategia de la Propiedad Intelectual publicó la Visión de política en materia de propiedad intelectual a fin de abordar las deficiencias del entorno actual de desarrollo de la 
propiedad intelectual mediante la mejora del registro de la propiedad intelectual, tanto en el Japón 
como en el extranjero, de los derechos que otorga el registro y de la protección de esos derechos. 
La Visión señala los progresos realizados desde que se aprobó en 2003 la Ley básica sobre 
propiedad intelectual y describe las medidas que deben adoptarse durante los próximos veinte 
años para seguir mejorando, centradas en cuatro pilares: 
 crear un régimen mundial de la propiedad intelectual para mejorar la competitividad 
industrial mediante unas relaciones constantes de cooperación con los países avanzados 
y con países de mercados emergentes, a fin de que el sistema japonés de propiedad intelectual pueda convertirse en una referencia. Asimismo, mejorar la asistencia que se presta a las empresas japonesas para que se expandan en esos mercados y para atraer 
capital humano al país; 
 prestar apoyo para mejorar la gestión de la propiedad intelectual por parte de las 
pequeñas y medianas empresas y de las empresas de capital riesgo, fomentando la 
sensibilización acerca de la importancia de la propiedad intelectual en las pymes y 
apoyando oficialmente las actividades relacionadas con la propiedad intelectual y la adquisición de derechos para su ejercicio en el extranjero; 
 mejorar el entorno para adaptarse a la sociedad de redes digitales mediante la creación 
de plataformas para la distribución de contenidos (de datos y entretenimiento): "Para fomentar la creación de nuevas industrias y seguir desarrollando la cultura es necesario crear un ciclo de reproducción y utilización de contenidos superando los intereses 
contrapuestos de los titulares de derechos y los usuarios y diseñando un sistema 
flexible que promueva la creación de nuevas empresas"; 
 fortalecer el "poder blando" centrándose en la industria de contenidos de propiedad 
intelectual mediante iniciativas como "Cool Japan", mediante un mayor consumo de 
productos culturales y de entretenimiento japoneses en el extranjero con una doble estrategia, externa (actividades de promoción y difusión en otros países) e interna 
(creación de un centro cultural para atraer capital humano y tecnología al Japón), y 
mediante una mayor protección contra las falsificaciones y productos pirateados nacionales y extranjeros." 
Under the paragraph 3.130, 
On 7 June 2013, the IP Strategy Headquarters issued the Intellectual Property Policy Vision to 
address shortcomings within the current climate for development of intellectual property by improving registration of intellectual property both in Japan and abroad, the rights from 
registration, and the protection of those righ ts. The Vision notes progress made since the 
Intellectual Property Basic Act was passed in 2003 and outlines the measures that should be taken to continue improvements over the next twenty years around four pillars: WT/TPR/M/310/Add.1 
 
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 building up a global intellectual property system for enhancing industrial 
competitiveness through continuing cooperative relationships with advanced countries and countries with emerging markets so that the Japanese IP system can become a standard. In addition enhancing assistance to Japanese companies to expand into these 
markets and attract human capital into Japan; 
 provide support for enhancing intellectual property management by SMEs and venture 
companies by raising awareness of the importance of IP within SMEs and providing 
government support for IP activities and acquisition of rights for their use overseas; 
 improving the environment for adjusting to the digital network society by developing 
platforms for content circulation for data and entertainment: "In order to stimulate the creation of new industries and to continue the development of culture, it is necessary to 
create a cycle of content reproduction and use by overcoming the conflicting interests of 
rights-holders and users, and by designing a flexible system that would promote new 
business creation"; 
 strengthening soft power focusing on the IP content industry through initiatives such as 
"cool Japan", improving consumption abroad of Japan cultural and entertainment products through an outbound approach (promotion and information abroad), an 
inbound approach (establish a cultural centre to draw human capital and technology 
into Japan), and protection from internal and external counterfeits, and pirated products. 
17． ¿Cómo puede la Oficina Central de Estrategia de la Propiedad Intelectual a través de su 
política en materia de propiedad intelectual, mejorar el registro de la propiedad intelectual en el 
extranjero? 
 
17. How can the Central Office of Intellectual Property Strategy through its policy on intellectual property, improve the registration of intellectual property abroad? 
 
RESPONSE  
In order to improve the registration of inte llectual property abroad through building and 
improving infrastructure toward the global  development of the intellectual property 
system, Japan will try to expand the fram ework of the Patent Prosecution Highway 
(PPH), accelerate examinations, improve th e quality of examinations and improve the 
information systems for examinations to support globalization. 
  Furthermore, through Economic Partnership Agreements, Japan seeks the improvement 
of efficiency and transparency of othe r countries' procedures so that Japanese 
companies can effectively and smoothly obtain th eir intellectual property rights in these 
countries. 
 
3.3.5.2 Patentes  El párrafo 3.136 del informe de la Secretaría señala que ... "Uno de los objetivos que se mantiene 
es el de conseguir que para el ejercicio económico de 2023 el período de tramitación se haya 
reducido a alrededor de 14 meses (frente a los 29,6 meses del ejercicio económico de 2012). En abril de 2014, la OPJ publicó la Política de calidad en el examen de las patentes, que contiene los 
principios fundamentales de una gestión de calidad en este ámbito con el objetivo de que se 
concedan patentes de gran calidad. La misión de la OPJ es llevar a cabo los exámenes más rápidos y de mayor calidad del mundo sobre la base de esa política." 
 
Under the paragraph 3.136, Reducing pendency to around 14 months by FY 2023 from 29.6 in 2012 remains an objective.89 In 
April 2014, the JPO released the Quality Policy on Patent Examination which outlines the 
fundamental principles of quality management in patent examination in order to grant high-quality 
patents.90 Based on this Quality Policy, the JPO is  dedicated to achieving the fastest and highest 
quality examination in the world. WT/TPR/M/310/Add.1 
 
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 18． ¿En qué enlace puede encontrarse el texto comple to de la Política de calidad en el examen 
de las patentes?  
18. At what link can the Quality Policy be found in the patent examination? 
 RESPONSE 
 
The Quality Policy on Patent Examination ou tlines fundamental principles of quality 
management in patent examination such as "We grant robust, broad and valuable 
patents". Examiners conduct patent examinat ions in accordance with the fundamental 
principles.  The Quality Policy on Patent Examination is available on the following JPO website; 
http://www.jpo.go.jp/seido_e/s_gaiy ou_e/pdf/patent_policy/policy.pdf .  
 
El párrafo 3.140 del informe de la Secretaría que ...  "El Gobierno del Japón también presta apoyo a 
las pymes para la adquisición de derechos de propiedad intelectual a través de dos iniciativas: 
i) apoyo mediante consultas relacionadas con su expansión en el extranjero en centros de apoyo (por ejemplo, las ventanillas de apoyo integral en materia de propiedad intelectual) y ii) ayudas al 
pago de los derechos, subvencionando la mitad de los costos de presentación de solicitudes en el 
extranjero en que incurren las pequeñas y median as empresas que tienen previsto expandir sus 
operaciones en el exterior y reduciendo en dos tercios las tasas de búsqueda cuando las solicitudes en el marco del PCT las presentan en japonés una persona física, una pyme que haya iniciado su 
actividad empresarial o se haya constituido hace menos de 10 años, o una microempresa." 
 Under the paragraph 3.140, 
The government of Japan also supports SMEs on acquisition of IPRs through the following two 
initiatives: (i) support through consultations to SMEs about their overseas expansion at a support centre (e.g. IP comprehensive support counters); and (ii) support in terms of fees, subsidizing half 
the costs SMEs incur in filing foreign applications  when they are planning to expand their business 
overseas, and reducing search fees by two-thirds where the PCT application is filed in Japanese by 
an individual, a small- or medium-sized enterprise that has commenced business or been established less than ten years or a micro-enterprise. 
 
19． ¿Cómo funcionan las ventanillas de apoyo integral en materia de propiedad intelectual a las 
pymes? 
 19. How do the comprehensive support windows work on intellectual property for SMEs? 
 
RESPONSE  
The IP Comprehensive Support Counters were es tablished in each pr efecture in FY2011 
to give consultation to SMEs on issues related to intellectual property. The IP Comprehensive Support Counters, which is in collaboration with related support 
organizations, provide solutions to various issu es from the stage of creating ideas up to 
the stage of establishing their business oper ations outside Japan for free of charge. 
Experts such as patent attorneys and lawyer s provide solutions to complicated issues. 
In the entire process of the consultation, confidentiality is maintained.  
 
3.3.5.5 Marcas de fábrica o de comercio 3.3.5.5 Trademarks 
 
El párrafo 3.147 del informe de la Secretaría que … "La Ley de marcas de fábrica o de comercio 
solo prevé la protección de las marcas de fábrica o de comercio registradas, aunque la Ley de prevención de la competencia desleal establece cierto grado de protección para las marcas no 
registradas. En 2014 se procedió a revisar la Ley de marcas de fábrica o de comercio en dos 
aspectos. En primer lugar, se revisó para ampliar el ámbito de protección mediante la incorporación de marcas no tradicionales como el "color" y el "sonido", ya protegidas en algunos 
países extranjeros. En segundo lugar, se amplió la gama de entidades que pueden registrar las 
marcas colectivas regionales, añadiéndose las asociaciones de comercio e industria, las cámaras de comercio e industria y determinadas empresas sin ánimo de lucro." WT/TPR/M/310/Add.1 
 
- 279 - 
 
Under the paragraph 3.147, 
Protection under the Trademark Act is only available for registered trademarks, although some protection under the Unfair Competition Prevention  Act is available for unregistered trademarks. In 
2014, Japan's Trademark Act was revised in two respects. First, it was revised to expand the scope 
of protection by adding non-traditional trademarks such as "colour" and "sound" that are already 
being protected in some foreign countries. Secondly, the Act is revised to expand the scope of eligible entities that can register the regional collective trademarks by adding associations of 
commerce and industry, chambers of commerc e and industry, and specified non-profit 
corporations.  20． ¿Cómo funciona ese "grado de protección para las marcas no registradas" establecido en la 
Ley de Prevención de la Competencia Desleal? 
 
20. How does the "grade of protection for unregistered marks" established in the Law on 
Prevention of Unfair Competition work?  
RESPONSE 
 The Unfair Competition Prevention Act has the provision on civil remedies including 
injunction and compensation for damages and criminal provisions.  
 3.3.5.6 Indicaciones geográficas 3.3.5.6 Geographical indications (GIs) 
 
El párrafo 3.154 del informe de la Secretaría señala que ... "En junio de 2014 se promulgó la Ley 
sobre la protección de determinados artículo s y productos alimenticios procedentes de la 
agricultura, la silvicultura y la pesca, cuyo objetivo es proteger las indicaciones geográficas de los 
productos agropecuarios y los intereses de sus pr oductores, contribuyendo así al desarrollo del 
sector, y proteger los intereses de los consumidores. La Ley entrará en vigor en junio de 2015." 
 
Under the paragraph 3.154, In June 2014, the Act for Protection of Names of Designated Agricultural, Forestry and Fishery Products and Foodstuffs was promulgated. The aim is to protect GIs of agricultural products, 
secure the interest of producers of such products and thereby contribute to the development of the 
sector, and ensure the interest of consumers. This Act is to enter into force by June 2015.  
21． ¿La Ley sobre la protección de determinados artículos y productos alimenticios procedentes 
de la agricultura que entra en vigencia en junio de 2015, es una ley independiente a las Leyes de 
marcas de fábrica o de comercio y de prevención de la competencia desleal? 
 21. The Law on the protection of certain items and foodstuffs from agriculture which takes effect 
in June 2015, is an independent law Laws trademarks or trade and prevention of unfair 
competition?  RESPONSE 
 
The new GI Act is not a part of Trademark Act nor Unfair Competition Prevention Act.  
 
22． ¿Bajo qué mecanismos se crearía un régimen mundial de la propiedad intelectual, de 
acuerdo con la Visión de la Oficina Central de Estrategia de la PI? 
 
22. Under what mechanisms is a global regime of intellectual property created, according to the Vision of the Central Office for Intellectual Property Strategy?  
RESPONSE 
 In order for Japanese companies to perfor m smooth global business operations, it is 
necessary to support emerging countries incl uding countries in Asia to build up high-
quality intellectual property sy stems, and to do so in cooperation with other countries, 
which already have advanced intellectual pr operty systems. The Government of Japan 
will comprehensively implement measures rela ted to building up a global intellectual WT/TPR/M/310/Add.1 
 
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 property system that can contribute to en hancing Japan's industrial competitiveness 
according to the Vision of the Central O ffice for Intellectual Property Strategy.  
 23． ¿Bajo qué esquema se planea mejorar la gestión de la PI por parte de las pymes? 
 
23. Under what scheme is planned to improve the management of Intellectual Property by 
SMEs? 
 RESPONSE 
 
As mentioned in the Report by the Secr etariat (Page 62, Para. 3.140), regarding 
industrial property rights, the government of Japan supports SMEs on acquisition of 
IPRs through the following two initiatives: (i) support through consultations to SMEs 
about their overseas expansion at support  centers (e.g. IP comprehensive support 
counters); and (ii) support in terms of fees , subsidizing half the costs SMEs incur in 
filing foreign applications when they are pl anning to expand their business overseas, 
and reducing search fees by two-thirds wher e PCT applications are filed in Japanese by 
an individual, a small- or medium-sized enterprise that has commenced business or 
been established less than ten years or a micro-enterprise. 
  
The GOJ furthermore supports breeders includ ing small and medium sized entities in 
protecting their IPRs regarding plant varietie s in foreign countries through consultation.  
 
(It is considered that this question is on  the Japan's initiatives on supporting SME's 
intellectual property rights mana gement although it refers to descriptions on GI in the 
Secretariat's report)  
 
4 Políticas Comerciales en  Determinados Sectores 
4 Trade Policies in Selected Sectors 
4.1 Agricultura 
4.1 Agriculture  4.1.2 Política agrícola 
4.1.2 Agricultural policies 
 4.1.2.1 Marco jurídico e institucional 
4.1.2.1 Legal and institutional framework 
 El párrafo 4.16 del informe de la Secretaría señala que...  "Existen programas para promover la 
limitación de la producción de arroz, en cuyo marco se presta ayuda mediante pagos directos 
basados en la cantidad producida dentro del contingente; entre ellos, figura un programa de reconversión para inducir a los agricultores a dedi car sus tierras a cultivos distintos del arroz. El 
Consejo Lechero del Japón (JDC) también administra programas de restricción voluntaria de la 
producción de leche. Los agricultores no están ob ligados a participar en estos programas, pero la 
mayoría lo hace. Se aplican políticas de estabilización de los precios al productor a los terneros para carne, la carne de porcino, las frutas, las legumbres y hortalizas, y algunos otros productos 
que compensan parcial o totalmente la diferencia entre los precios de venta y los precios 
indicativos o el promedio de los precios de la se rie histórica. Además, el gobierno subvenciona el 
Plan de Seguros Agrícolas y ofrece reasegur os a los fondos nacionales de seguros." 
 
Under the paragraph 4.16, Programmes to encourage production limitation applies to rice which 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, pork, fruits, vegetables and some other products which 
partially or fully compensate for differences betwee n sales and target prices or historical average 
prices. In addition, the government subsidizes the Agricultural Insurance Scheme and provides 
reinsurance to local insurance funds. WT/TPR/M/310/Add.1 
 
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24． ¿Puede explicar Japón cómo se calculan los precios indicativos para carne de ternero, 
porcino, frutas, legumbres y hortalizas y cada cuanto se actualizan?  
24. Can you explain Japan how the indicative prices for veal, pork, fruits, vegetables are 
calculated and how often they are updated?  
RESPONSE 
 There is no indicative price for veal. 
 
For beef and pork, the upper and the lower stabilization price are calculated as the 
range of wholesale prices taking into co nsideration annual production cost, current 
supply-demand situation and other factors. 
 
For calves, the guaranteed price and the targ et rationalization price are calculated for 
each cattle breed every year. The guaranteed price is calculated as the price ensuring 
the reproduction of calves, based on the sales price of calves before the liberalization of 
beef import in 1991 and taking into cons ideration change of economic situation 
thereafter, to ease the impact of the libera lization. The target rationalization price is 
calculated as a beef price that is competitiv e with an imported one, taking into account 
rational cost for raising calves up to their shipment.  For fruits, the indicative prices are calcul ated based on normal wholesale price. The 
prices are revised every year. 
 For vegetables, the indicative prices, the gu aranteed base prices, are calculated based 
on the market prices of past several ye ars. The prices are revised around every 
three years.  
 
El párrafo 4.19 del informe de la Secretaría señala que ...  "Según la última notificación presentada 
al Comité de Agricultura de la OMC en relación con las importaciones sujetas a contingentes arancelarios (correspondiente al ejercicio económico de 2012), el Japón aplica 18 contingentes arancelarios que abarcan 196 líneas arancelarias al nivel de 9 dígitos. Las tasas de utilización de 
los contingentes se han mantenido bastante estables en los últimos años, pero varían 
considerablemente de un contingente a otro. Por ejemplo, las tasas de utilización de los contingentes de "otros productos lácteos para uso general", la "cebada y productos elaborados a 
base de cebada", el "trigo … y productos elaborados a base de trigo", la "leche evaporada" y 
algunos otros productos superaron el 90% todos los años comprendidos entre los ejercicios económicos de 2007 y 2012; en cambio, las tasas de utilización de otros contingentes ("leche 
desnatada", "preparaciones de lactosuero para lact antes", "mantequilla y aceite de mantequilla", y 
algunos otros) se mantuvieron constantemente por debajo del 40%."  Under the paragraph 4.19, 
In its most recent notification on imports under tariff quotas (for FY2012) to the WTO Committee 
on Agriculture, Japan has 18 tariff quotas covering 1 96 tariff lines at the 9 digit level. Fill rates for 
each quota have been fairly consistent over the past few years but vary considerably from one 
quota to another. For example, the fill rates for "Other dairy products for general use", "barley and 
its processed products", "wheat … and its processe d products", "evaporated milk" and some others 
were over 90% for each year from FY2007 to FY2012 but fill rates for other quotas, such as 
"skimmed milk", "prepared whey (for infant formula)", "butter and butter oil", and some others 
were consistently below 40%.  25． ¿Podría explicar Japón por qué se presenta una utilización de los contingentes por debajo del 
40% para productos como leche desnatada y mantequilla? 
 
25. Can you explain Japan why you use quotas below 40% for products like skim milk and 
butter?  
RESPONSE 
 The underfill of TRQs for some pr oducts is mainly related to the decline of their domestic 
consumptions related to these TRQs.  WT/TPR/M/310/Add.1 
 
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 28. PERU 
I. Documento WT/TPR/S/310 
 
Sobre la base de lo señalado en el documento WT/TPR/S/310 del 19 de enero de 2015, el Perú 
tiene las siguientes preguntas: 
 I.  Document WT/TPR/S/310 
 On the basis of what is stated in Document WT/TPR/S/310 of January 19, 2015, Peru has the following questions:  
Pregunta 1 
 
Párrafo 1.25. 
 
Pregunta 
 
¿Qué medidas específicas para incrementar el número de trabajadores extranjeros contempla la 
Estrategia revisada de revitalización del Japón (publicada el 24 de junio de 2014)?   Question 1 
 1 Economic Environment 1.3. Outlook 
Paragraph 1.25. 
 Question 
 What specific measures to increase the number of foreign workers does for revised revitalization strategy of Japan (published June 24, 2014) consider?  
RESPONSE 
 Amid intensifying competition to acquire per sonnel, it is vital to attract high-caliber 
human resources to Japan to further revita lize the Japanese economy and increase its 
competitiveness. In this regard, the Gove rnment of Japan included the concrete 
measures to utilize foreign human resources in "Japan Revitalization Strategy Revised 
in 2014". 
 (Highly skilled foreign professionals)  
In order to promote entry of highly skilled fo reign professionals, a points-based system 
that provides highly skille d foreign professionals with  preferential immigration 
treatment was introduced in May 2012. 
In 2013, the Government implemented measures  aimed at increasing the convenience of 
preferential measures to promote the utilizat ion of the points-based system for highly 
skilled foreign professionals. More specific ally, these related to the relaxing of 
requirements for recognition as a highly ski lled foreign professional, such as revising 
the minimum annual income criterion, as well as eligibility to be accompanied by 
parents or domestic workers. Furthermore, in June 2014, the Act to Amend the Immigration Control and Refugee Recognition Act was enacted to establish a new status 
of residence with an indefinite period of stay targeting highly skilled foreign 
professionals.  
(In the field of construction and shipbuilding) 
 As a temporal urgent measure towards the 2020 Olympics and Paralympics and the like, 
the government will introduce a new system to promote the utilization of foreign human 
resources work-ready for the construction sector while making maximum efforts to 
secure domestic human resources by impr oving working conditions and workplace 
efficiency. Also, a similar measure will be  taken for the shipbuilding sector. The WT/TPR/M/310/Add.1 
 
- 283 - 
 
Government will start accepting foreign hu man resources under this system at the 
beginning of FY2015.  In addition, with regard to the fields where an urgent response is required to ensure 
sustainable growth, the Government will conduc t the following initiatives in view of the 
situation where labour shortages are al ready beginning to become apparent. 
 
(In the field of manufacturing) 
 In light of fears about de-industrialization within Japan due to accelerating overseas 
expansion by Japanese manufacturing indu stry, the Government will develop systems 
that will enable domestic bases to function as mother plants, carrying out production 
activities based on a division of roles with overseas bases, and which will also facilitate 
research and development and capital in vestment based on this premise. The 
Government will design the specific in stitutional arrangements within FY2014. 
 (In the field of housekeeping) 
 
Foreign housekeeping support workers are currently only permitted to enter and remain in the country if they are employed by fore ign nationals such as diplomats and highly 
skilled professionals. However, the Governme nt will conduct deliberations focused on 
enabling foreign housekeeping support workers employed by a company providing 
housekeeping support services to enter and re main in the country even in cases in which 
the purpose is to provide housekeeping suppor t to Japanese nationals. Such initiatives 
would be undertaken in National Strategic Special Zones on a trial basis, within the 
framework of a system managed by local auth orities, with a view to promoting active 
social participation by women, meeting their need for assistance with housework, and 
encouraging medium- to long-term economic gr owth. To this end, the Government will 
implement the requisite measures without delay.  (In the field of nursing care) 
 
To enable international students studying in Japan to continue to play an active role 
within the country after graduating from a Japanese higher education institution and 
obtaining a specific national qualification such  as the certified care worker qualification, 
the Government will promptly take legislative measures for the establishment of a new 
status of residence.  
 
Pregunta 2 
 Párrafo 4.16.  
 
Pregunta 
 
¿Quiénes forman parte del Consejo Lechero de l Japón (JDC) y cuáles son sus principales 
funciones?  
 ¿En qué consisten los programas de restricción voluntaria de la producción de leche que 
administra el JDC?  
 Question 2 
 4. Trade Policy in Certain Areas 4.1. Agriculture 
4.1.2. Agricultural policy 
4.1.2.1. Legal and institutional framework Paragraph 4.16. 
 
Question 
 •  Who forms part of the Japan Dairy Council (JDC) and what are its main features? WT/TPR/M/310/Add.1 
 
- 284 - 
 
  
 
 RESPONSE 
 - Producer organizations divided into nine regional blocs are the members of JDC. 
- JDC is the organization that coordinates producer organizations in each regional 
blocs and takes a role in providing variou s supports mainly concerning distribution 
of raw milk.  
 
•  What are the programs of voluntary restriction of milk production that manages the JDC? 
 RESPONSE  
The JDC operates the voluntary stable liqui d milk supply program by setting the milk 
production target based on its estimates of supply and demand. Under this program, milk producers produc e liquid milk on the basis of the target 
quantity.  
 Pregunta 3 
 Párrafo 4.30.  Pregunta 
 Con relación al programa de pagos directos a la agricultura respetuosa del medio ambiente:  
 ¿Cuáles son los objetivos y requisitos ampliados respecto a los pagos para hacer frente a las 
cuestiones relacionadas con el calentamiento de la tierra y la biodiversidad?  
 ¿Cuáles son las cuestiones específicas relacionadas con el calentamiento de la tierra que se 
busca hacer frente?  
 ¿Cuáles son las cuestiones específicas relacionadas con la biodiversidad que se busca hacer 
frente?  
 
Question 3 
 
4.1.2.3. Domestic support 
4.1.2.3.1. General assistance programs 
Paragraph 4.30.  
Question 
 
Regarding the direct payment program for environmentally friendly agriculture:  
• What are the objectives and expanded requirem ents regarding payments to address issues 
related to global warming and biodiversity?  
 
RESPONSE 
 The objectives of this program are to prevent global warming and to conserve 
biodiversity. 
 The expanded of the requirements includes the adoption of farming practices that are 
effective in storing carbon in farmland so il with the purpose of preventing global 
warming and the one such as organic farm ing that are effective in biodiversity .  
 • What are the specific issues related to global warming that it seeks to address?  
 
RESPONSE  
The direct payment program aims to promote practices such as the utilization of green 
manure crops that are effective in storing carbon in farmland soil. 
 •  What are the specific issues related to biodiversity that it seeks to address?  WT/TPR/M/310/Add.1 
 
- 285 - 
 
RESPONSE 
 This direct payment program aims to promote practices such as organic farming that are 
effective in conserving biodiversity and in creasing the number of living creatures in 
farmlands and surrounding areas .  
 Pregunta 4 
 Párrafo 4.79  Pregunta 
 ¿Cómo se definen "pequeñas embarcaciones" y "embarcaciones familiares para la pesca costera" para los fines de la ayuda para la renovación de embarcaciones y equipos de pesca? 
 
Question 4 
 
4.2. Fisheries 
4.2.3. Policy 4.2.3.4. Support of fisheries Paragraph 4.79 
 
Question 
 
How are "small craft" and "family boats for coas tal fishing" for the purposes of aid in the 
renovation of boats and fishing equipment defined?  
RESPONSE 
 Although there is no specific definition, it  is generally implemented that "small craft" 
which also covers "family boats for coastal fi shing" means a vessel whose weight is less 
than 10 tons. 
 Pregunta 5 
 Párrafo 4.82.   
Pregunta 
 
¿Bajo qué condiciones se concede al sector pesquero la exención fiscal para los combustibles y la inaplicación del impuesto especial que grava el aceite ligero? 
 
Question 5 
 
Paragraph 4.82. 
 Question 
 Under what conditions is tax exemption for fuel and the nonapplication from excise duty on light oil 
granted to the fishing sector?  
RESPONSE 
 Although a tax exemption is applied not only  to fishing activities, but also to many 
industries including agriculture and forestry , the condition for tax exemption for heavy 
and light oil in fishing activities is that the vessel is used for fishing for marine and 
inland capture. However, the vessels for recr eation such as leisure and sports fishing 
are excluded.  WT/TPR/M/310/Add.1 
 
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 II. Documento WT/TPR/G/310 
 
Sobre la base de lo señalado en el documento WT/TPR/G/310 del 19 de enero de 2015, el Perú tiene las siguientes preguntas: 
 
II. Document WT/TPR/G/310 
 
On the basis of what is stated in document WT/TPR/G/310 of January 19, 2015, Peru has the 
following questions:  Pregunta 6 
 Abenomics Reforma del sector  agropecuario 
 
El párrafo 4.9 señala que el gobierno del Japón procederá con una "reforma reglamentaria  
integrada del Comité de Agricultura y de otros organismos " con el objetivo de que los agricultores 
puedan llevar a cabo actividades de producción y explotación más dinámicas; así, el gobierno 
aspira a aumentar las exportaciones anuales de productos agropecuarios, forestales y pesqueros y de productos alimenticios de origen japonés.   
Pregunta 
 
 ¿Cuáles son aquellos "otros organismos" que formarían parte de la mencionada reforma 
reglamentaria?; y,  
 ¿Cuáles son aquellas medidas que serán adoptadas como parte de dicha reforma?  
 
Question 6 
 
4. Internal Policies of Japan 4.1 Abenomics 
Agricultural reform sector 
 Paragraph 4.9 states that the Japanese government will proceed with an "integrated regulatory 
reform of the Agriculture Committee and other agencies " in order to allow farmers to carry out 
production activities and more dynamic farming; thus, the government hopes to increase annual exports of agricultural, forestry and fishery products and foodstuffs of Japanese origin. 
 
Question 
 • Which are those "other agencies" which shall form part of the aforementioned regulatory 
reform? and,  
 RESPONSE 
 
Other agencies in this context in clude agricultural cooperatives.  
 
• What are the measures that will be taken as part of this reform? 
 RESPONSE  
Integrated reform of agricultural cooperat ives, agricultural committee and agricultural 
production corporation will be  implemented to se cure the independen ce and vitalization 
of local agricultural cooperatives and to revise the means of electing agricultural 
committee members and the requirements that allow agricultural production 
corporations to own farmland. Relevant b ills are scheduled to be submitted to the 
current ordinary Diet session.  
 WT/TPR/M/310/Add.1 
 
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29. INDIA 
Secretariat Report - WT/TPR/S/310 
 
Page 9, Paragraph 11 
 
Background –  "For a variety of reasons, Japan's SPS and TBT requirements are often more strict 
than international standards and the cost of meeting its quality and safety standards can be high. 
As at 31 March 2014, there were 10,525 Japanese Industrial Standards (JIS), 5,823 of which 
correspond with international standards, and 97% of JIS had been harmonized with identical or modified international standards. Japan currently imposes import prohibitions on beef and poultry 
from various countries to prevent the spread of some animal diseases, including BSE and avian 
flu." 
 Question 1 
 
Could Japan clarify whether only three per cent of its Industrial Standards are based on national 
standards and the rest aligned with relevant International Standards? Could Japan also indicate sectors in which it has yet to align JIS with International Standards?  
 
RESPONSE  Consistency between JIS and international standards is as follows; 
 
Total Number of JISs 10,525 
- Number of JIS corresponding to international standards 5,823 
 JIS identical to international standards (IDT) 2,308 
JIS modified from international standards (MOD) 3,340 
 JIS not-equivalent to international standards(NEQ) 175 
- Number of JIS NOT corresponding to international standards 4,702 
 
JISs not-equivalent to international standard s (NEQ) are included in various sectors, not 
in specific sectors. 
 Page 38, Paragraph 3.47 
 
Background – " The main changes introduced since 2013 to the legal framework on SPS 
measures in Japan include the following:  
 Regulations under the Plant Protection Act amended in 2013. Changes included: updating 
the quarantine pest list, the non-quarantine  pest list, the table of pest/plant/area 
combinations subject to: (a) inspection at growing site in exporting countries, (b) import 
prohibition, and (c) special Phytosanitary measures to be carried out in exporting countries. 
 The provisional maximum residue limits (MRLs) for pesticides in feeds, established in 2006 
under the Enforcement Ordinance of the Standards of Feed and Feed Additives, were 
recently revised by the MAFF." 
 Question 2 
 
Japan is requested to provide justification for maintaining a higher level of MRLs for pesticides 
(including herbicides and fungicides) compared to that of CODEX Standards for the following agricultural products. Could Japan also indicate whether any risk assessment has been carried out, 
and the scientific justification, before application of higher MRLs? 
  Cattle Meat 
 Chickpea 
 Coconut  
 Coffee bean, green 
 Corn, grain 
 Cucumber 
 Grape, table 
 Milk 97% 
3% WT/TPR/M/310/Add.1 
 
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  Cashew Nut 
 Onion bulb 
 Peanut 
 Pepper, non-bell 
 Rice 
 Soybean 
 Tea leaves 
 Wheat, grain 
 RESPONSE  
Basically, Japan establishes or  revises MRLs (maximum resi due limits) for agricultural 
chemicals, including veterinary drugs and pesticides, based on the risk assessment 
conducted by the Food Safety Commission of  Japan (FSC). In light of the assessment 
results, the Ministry of Health, Labour and Welfare (MHLW) of Japan carries out 
exposure assessment based on food intakes by Japanese citizens and crop residue 
studies to confirm that MRLs will no t cause damage to human health.  
 
Japan harmonizes Japan's MRLs with Code x standards where appropriate .However, 
Japan needs to set limits that are stricter than Codex standards for some reasons, such 
as a difference in food intakes between Japan and other countries.  
 
The FSC publishes risk assessment results for individual chemicals on FSC's website. The 
MHLW also releases the grounds for setting forth MRLs on its website.   
 
Question 3 
 
There is no information related to Mutual Recognition Agreements in Services in the TPR Report. Japan is requested to provide information in this regard and also details of such agreements 
signed by them, if any. 
 RESPONSE  
Japan concluded MRAs regarding Services, such as: 
 (a) "A BILATERAL FRAMEWORK TO FACILITA TE MOBILITY FOR MU TUAL RECOGNITION 
OF REGISTERED / LICENSED ENGINEERS" (with Australia, 2003); 
(b) "BILATERAL AGREEMENT ON RECIPROCAL RECOGNITION OF REGISTERED/LICENSED ARCHITECTS IN JAPAN AND AUSTRALIA TO FA CILITATE MOBILITY OF ARCHITECTS IN 
THE PROVISION OF ARCHITECTURAL SERVICES" (2008); and 
(c) "MEMORANDUM OF COOPERATION ON REGISTERED/LICENSED ARCHITECTS IN JAPAN AND NEW ZEALAND TO FACILITATE  MOBILITY OF AR CHITECTS IN THE 
PROVISION OF ARCHITECTURAL SERVICES" (2009); 
under the frameworks of APEC Engineer and APEC Architect. 
 WT/TPR/M/310/Add.1 
 
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30. DOMINICAN REPUBLIC 
Preguntas 
 
1. ¿Existen sectores de servicios para los que se requiere notificación previa y su 
correspondiente aprobación oficial? ¿De ser así, cuáles? 
 Are there service sectors for which prior notification and official approval are required? If so, 
which? 
 RESPONSE  
There are some service sectors for which prio r notification and corresponding official 
screening are required. For instance, on the gr ounds of public order, public safety, and 
national security, the following sectors are su bject to screening: nuclear power, electric 
utilities, gas utilities, water, heat genera tion, telecommunications, etc. (Foreign 
Exchange and Foreign Trade Act, Article 27 (3) (a)). Also, such notification and official 
screening are required when "significant ad verse effects on the smooth management of 
the national economy" (Foreign Exchange an d Foreign Trade Act, Article 27(3) (b)) may 
be produced by inward FDI.  
 2. Dado el diferencial de precios entre los productos nacionales y los importados; ¿Cómo 
garantiza Japón la no discriminación de los bienes importados dentro del proceso de compra que 
realizan las empresas del Estado?  
Given the price differential between domestic and imported products, how does Japan ensure 
non-discrimination of imported goods within the buying process performed by state enterprises?  
RESPONSE 
 Regardless of the price difference betwee n domestic and imported products, the 
government of Japan is complying with the WTO rules including the principle of non-
discrimination in the operation of state trading.   
 3. Podría aclararnos Japón si le tiene prohibid o a embarcaciones de propiedad extranjera portar 
el pabellón nacional? 
 Can you clarify Japan if foreign-owned vessels are banned from flying the national flag? 
 
RESPONSE  The Ship owned by a person or a company which does not meet the requirements below 
is not allowed to fly the national flag of Japan. 
 1.  Ship owned by Government Agen cy or Public Office of Japan; 
2.  Ship owned by a Japanese national; 
3.  Ship owned by a company established under the law of Japan, of which all the representatives and not less than two-thirds of the executives administering the affairs 
are Japanese nationals; 
4.  Ship owned by a juridical person ex cept the company described 3. above and 
established under the law of Japan, of wh ich all the representatives are Japanese 
nationals.  
 
 WT/TPR/M/310/Add.1 
 
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 31. MALAYSIA 
Government Report – WT/TPR/G/310 
 
2. Trade and Investment Policy  
 
2.1. Since the eleventh meeting of the Trade Po licy Review on Japan in 2013, Japan has been 
committed to the trade liberalization under the mult ilateral trading system centered on the WTO. 
Japan is determined to be fully engaged in this  non-discriminatory, open and rule-based regime. 
 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 plurilat eral agreements will enhance the transparency 
of the respective member country's economic policy and reinforce the competitiveness of its industries, 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 multilateral trading system.  
2.3. Japan is currently a party to thirteen EPAs. Through the 'Japan Revitalization Strategy' issued 
by the Government in June 2013, Japan is commi tted to increasing the FTA coverage ratio to 70% 
by 2018 from the current figure of 19%. Region al trade agreements and multilateral trading 
system under the WTO should complement one an other and Japan believes that these regional 
agreements will serve as building blocks to achiev e higher trade liberalization at the multilateral 
level. 
 
2.4. Regarding plurilateral negotiations in relation to the WTO, Japan is now engaging in initiatives such as the expansion of the Information and Te chnology Agreement (ITA), Trade in Services 
Agreement (TiSA), and the Environmental Goods Agreement (EGA). These negotiations will 
achieve significant progress towards the multilateral trade liberalization. 
 
Question 
 
1. We appreciate if Japan could share with us its position on Rev 3 of NAMA Modalities, in particular with regards to mandate of paragraph 7 (NAMA Framework) that Members recognize for pursuing sectoral elimination of duty through sectoral initiatives; 
 
RESPONSE  
Japan is committed to early conclusion of the DDA. As to NAMA, Japan will seek 
approaches that foster trade liberalization, while providing flexibility to reflect specific 
interests of Members.  
2. Malaysia would like to get clarification from the Japan on whether potential benefit of Trade 
in Services Agreement (TiSA) will be extended to all WTO Members on MFN basis;  
RESPONSE 
 Towards the further liberalization of trade in services, Japan is actively engaging in the 
negotiations of Trade in Services Agreement (TiSA) in order to create an advanced new 
agreement by liberalizing the services se ctors at a level high er than GATS and 
incorporating the results of EPA/FTAs. Ja pan would like to refrain from making 
comments since the negotiation is ongoing,  but we are in the process of serious 
discussions with related countries about various matters including MFN provision. 
 
3. Appreciate if the Japan could share its expectation towards the plurilateral EGA negotiations 
as well indicate specific products on top of APEC list that it might be pushing for tariff elimination; 
and  
RESPONSE 
 Japan, together with other members, is committed to work towards the early conclusion of EGA negotiation to contribute to green growth and sustainable development. Japan WT/TPR/M/310/Add.1 
 
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will work to achieve shared ambitious goal of  global free trade in environmental goods 
beyond the APEC List of Environmental Goods .  
 
4. How Japan intends to pursue and contribute to discussion on Information and Technology 
Agreement (ITA) given that it has been stalled several times.  
 RESPONSE 
 
The global industry expects for a swift conc lusion of the ITA expansion negotiation. 
Japan will continue to contribute to finalizing the negotiation as soon as possible through plurilateral and bilateral discussions .
 WT/TPR/M/310/Add.1 
 
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 32. TRINIDAD AND TOBAGO 
Report by the Secretariat (WT/TPR/S/310) 
 
Section 2: Trade and Investment Regime 
(2.4) Investment regime 
 (a) Paragraph 2.24 (page 24): The Report stated that "The Expert Group made a number of 
recommendations including reducing the tax and administrative costs, improving human 
resources, harmonization and simplification of lic ensing and approval systems, and promotion of 
EPAs, tax agreements, and other bilateral investment-related treaties."  
(i) Have these recommendations been implemented?  
(ii) If so, how successful have these recommendations been? 
 
RESPONSE 
 Taking into account the recommendations of the Expert Group Meeting on Foreign Direct 
Investment in Japan, the Council for Promotion of Foreign Direct Investment in Japan is 
considering to identify priori ty tasks, which include but not limited to, strengthening 
multi-language services, cultivatin g personnel with a global outlook. 
 
Section 3: Trade Policies and Practices by Measure 
(3.3) Measures Affectin g Production and Trade 
(3.3.1) Taxes 
(3.3.1.3) Corporation tax-based incentives 
 (a) Paragraph 3.99 (page 49): It was noted that several of Japan's tax incentives are used to 
encourage investment in specific areas and in specific activities. Does a special, preferential 
corporate tax exist for developing countries like Trinidad and Tobago who may wish to invest in Japan?  
 
RESPONSE 
 Japan does not have special corporate inco me tax treatments specifically targeting 
inward investment from developing countries. WT/TPR/M/310/Add.1 
 
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33. THE REPUBLIC OF KOREA  
PART I: Questions - Secretariat Report WT/TPR/S/310 
 
Page 12 (Para. 6) 
 Regarding the exchange rate of the yen, a nomina l depreciation against the U.S. dollar of about 
22% took place in 2013 (Table 1.1), reflecting several factors such as the new monetary 
framework, a reversal of the yen's safe haven st atus, and a structural weakening of Japan's trade 
balance given higher energy imports (section  1.2.1). Between January-November 2014, the 
nominal exchange rate of the yen also depreciated against the U.S. dollar.  
Question 1 
 
Under 'Abenomics', the yen-to-dollar exchange has depreciated by more than 38% in two years. 
Taking this into account, there is wide concern that the rapidly falling yen would have negative 
effects on Japanese importers while putting neighbour exporters at a disadvantage. Along these lines, please elaborate on the government's exchange rate forecast for the end of 2015.  
 
RESPONSE  Japan has been committed to the agreements on exchange rates in G20 and G7, 
including the commitment to market-determine d exchange rates to reflect underlying 
fundamentals. That said, since the various fa ctors may affect the developments of the 
rate and the market determines it, it is diffic ult to forecast as the Government of Japan. 
 
Page 26 (Para. 5) 
 
Japan ranks 20th (out of 189 economies) in the World Bank's Trading Across-Borders 2015 Index; 
Import procedures take 11days and cost US$1,107 per container (compared with 11 days and US$970 per container in 2013). The Japanese authorities indicate that this data refers to import procedures other than customs. Customs fee and charges are described in the website of Japan 
Customs.  
 Question 2 
 Could Japan please explain why import costs per container increased from US$970 in 2013 to US$1,107 in 2014? 
 
RESPONSE  The Government of Japan does not publish or  compile the data with regard to import 
costs per container as described in the Worl d Bank report. The Government of Japan is 
not in a position to explain the report issued by the World Bank.  
Page 27 (Para 11) 
 
Japan provides preferential rules of origin under  the Generalized System of Preferences (GSP) and 
its various RTAs/EPAs. To benefit from preferenti al duties, certificates of origin need to be 
provided, issued by authorized institutions in the exporting country, in order to prove to that the product being imported is basically "wholly obtained " or "substantially transformed"(e.g. change of 
tariff classification at the HS 4- digit or 40% of value added) in the exporting country.  
 
Question 3 
 
Does Japan have any plans to simplify preferenti al rules of origin under the GSP and introduce a 
self-certification system in accordance with the Ba li Ministerial Decision on Preferential Rules of 
Origin for Least-Developed Countries? WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 Japan is planning to simplify preferential ru les of origin under GSP for knitted articles 
(Chapter 61 of the HS) soon. With regard to  the self-certification system, Japan looks 
into the possibility of the introduction under  GSP by taking various impacts on LDCs, 
traders and customs into account.  
Page 27 (Para 14) 
 
The structure of Japan's MFN applied tariff has remained largely unchanged over the last few years. In FY2014, Japan's tariff schedule comprised 9,151 lines (down from 9,168 in FY2012) at 
the HS nine-digit level (Table 3.1). Of all tariff lines, 93.3% involve ad valorem rates (including 
duty free lines which are 40.4% of all lines). The remaining 6.7% (i.e. 613 lines) are non- ad 
valorem : specific rates are applied to 2.6% of the lines; 3.1% have alternate specific duty or ad 
valorem ; 0.6% have compound rates; and other types of tariff (differential duties and sliding 
duties) apply to 0.3% of tariff lines (Chart 3.1).  
Question 4 
 
Among the non-ad valorem duties which comprise 6.7% of all tariffs, specific duty represents 
2.6% and alternate specific duty represents 3.1% , according to chart 3.1. Please describe the 
definitions of these two duties and the difference between them. Is alternate specific duty able to 
be defined as non-ad valorem  duty? Also, could Japan explain wh at products are classified as 
alternate specific duty? 
 
RESPONSE  
 "Specific duty" is imposed as  fixed amount per quantity on each article regardless 
of its value. 
 "Alternate specific duty or ad valorem " involves either a sp ecific duty or an 
ad valorem  duty, of which the higher rate  is applied in most cases. 
 "Alternate specific duty or ad valorem " is treated as a non- ad valorem  duty, as it 
includes specific, i.e. non- ad valorem , duty. 
 "Alternate specific duty or ad valorem " is imposed on products such as a part of 
egg yolks, fats and oils of fish or wo ven fabrics of wool or unwrought lead. 
 Page 30 (Para 17) 
 Import duties on agricultural products are higher than duties on non-agricultural products: the simple average for agriculture (WTO definition) is 14.9% (17.5% in FY2012), compared with 3.7% for non-agricultural products (same as in FY2012). Simple average 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).  
Question 5 
 
The simple average for agriculture (WTO Definition) dropped by 2.6% compared to 2012, while 
non-agriculture products remained constant. What are the reasons why the simple average for 
agriculture changed to the extent that it did? Pl ease identify what factors contributed to this 
change.   
RESPONSE 
 We are not clear about the basis of the figure in question because it is calculated by the 
WTO secretariat. But the drop, if any, is supp osed to be affected by various factors such 
as the fluctuation of AVEs caused by the fluctuation of unit import price.  
Page 33 (Para 29) 
 
Japan's legislative and institutional frameworks regarding contingency trade measures remain unchanged since its previous review. The Customs Tariff Law and the relevant Cabinet Orders and WT/TPR/M/310/Add.1 
 
- 295 - 
 
Guidelines define Japan's legal framework regarding the use of anti-dumping, countervailing, and 
safeguard measures.  Question 6 
 According to the press release, titled "Revision of  the Guideline on the An ti-Dumping Investigation 
dated April 1, 2011", the MOF (Ministry of Finance)  and the METI (Ministry of Economy, Trade and 
Industry) concluded that the level of requirements to initiate the anti-dumping investigation had 
been much higher than the international standard and decided to lower the level of the requirements in order to help domestic producers to meet the requirements set forward. On 29 August 2011, Japan notified the revised Guideline to the Committee on Anti-Dumping Practice 
under Article 18.5 of the Anti-Dumping Agreement which defines the domestic industry by 
excluding producers who did not express opinions regarding the investigation (G/ADP/N/1/JPN/2/Suppl.7). Has Japan reviewed the revised guideline and the WTO Anti-Dumping 
Agreement to ensure that they are indeed compatible? 
 RESPONSE 
 
The amendment of the Guidelines for Proced ures Relating to Anti-Dumping Duty was 
notified to the WTO on 27 July 2011 and reviewed by the Committee on Anti-Dumping Practices on 24 October 2011. The amendment is consistent with the relevant WTO 
agreements. Our legislative and institutiona l frameworks regarding contingency trade 
measures remain unchanged since our previous Trade Policy Review on 19 and 21 February 2013. 
 
Page 33 (Para 30) 
 
Contingency trade remedies investigations are carried out by teams established on a case by-case 
basis and composed of relevant officials from the Ministry of Finance, METI and the Ministry in 
charge of the relevant industry. The Ministry of Finance is involved in an investigation as the agency responsible for tariff policy and customs administration, and the METI carries out an 
investigation as the agency responsible for increase, improvement and adjustment of import and 
export.   
Question 7 
 
Reviewing the Customs Tariff Law, the Cabinet Order Relating to Anti-Dumping Duty, and the 
Guidelines for Procedures Relating to Anti-Dumping Duties, the role of the METI remains unclear 
while the Ministry of Finance essentially functions in an oversight capacity. Along these lines, what 
is METI's role in the anti-dumping investigation?   
RESPONSE 
 First, the Ministry of Economy, Trade and Indu stry is involved in the investigation as the 
agency whose jurisdictions include the implementation of trade agreements. 
 If the like product of the investigated produc t is produced by the industry of which the 
Ministry of Economy, Trade and Industry is in charge, the Ministry of Economy, Trade 
and Industry is involved as the agency resp onsible for the relevant industry in Japan.  
 Question 8 
 Are there any other roles played by the METI other than providing personnel to establish investigative teams to carry out investigations to determine whether the importation of dumped 
products causes material injury, threat of material injury or materially retards the establishments 
of domestic industry?  
RESPONSE 
 The Minister of Economy, Trade and Industry keeps in close contact with the Minister of 
Finance and the Minister in charge of the relevant industry in Japan with respect to the WT/TPR/M/310/Add.1 
 
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 investigation and price underta king. Any determination on important matters involved 
shall be made after consulting with each other.  Question 9 
 Does the investigating team have the authority to make conclusive determinations of injury, such as deciding whether the importation of a dumped pr oduct causes material injury, threat of material 
injury or materially retards the establishments of domestic industry? Or does it simply conduct 
investigations and report the results to the Ministry of Finance?   RESPONSE 
 
The Minister of Finance, the Minister in char ge of the relevant industry in Japan and the 
Minister of Economy, Trade and Industry ke ep in close contact with each other with 
respect to the investigation and make a determination on any important matters 
including the determination of material injury, threat of material injury and material retardation after consulting with each other. 
 
Page 36 (Para 42) 
 Approximately 7,873 domestic and 859 foreign factories in 21 countries and economies are 
certified to affix JIS marks (JIS Mark scheme). The JIS Mark scheme is voluntary unless relevant 
regulations require JIS for domestic sales. 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 2014, 24 
organizations were accredited as JIS mark certification bodies.  
Question 10 
 
Could Japan specify the cases in detail when the JIS Mark scheme is essential as per relevant regulations required for domestic sales? 
 
RESPONSE  
All JISs are voluntary standards. Howeve r, JISs can be the basis for technical 
regulations when they are re ferred in relevant laws.  
For example, there are some cases that JIS is  referred to as a part of the technical 
regulation under the Electrical Appliances and Materials Safety Act, the Household 
Goods Quality Labeling Act or the Act on Rail Tracks.  
 Page 36 (Para 43) 
 Compliance with the JAS is not necessary for imports into Japan except organic plants and organic processed foods of plant origin. The JAS Law allows third-party organizations to certify operators 
(e.g. manufacturers) to affix JAS marks. The Minister  of Agriculture, Forestry and Fisheries as well 
as Registered Certifying Bodies (RCBs) and Registered Overseas Certifying Bodies (ROCBs) are responsible for monitoring and managing JAS marks.22 Foreign producers or manufacturers that 
are certified by RCBs and ROCBs may conduct thei r own grading and affix the JAS marks to their 
products. At present, there are 28 ROCBs, 18 for organic products, and 10 for forestry products. Under the JAS Law, foreign enterprises certifying operators that produce, process, and/or distribute agricultural or forestry products in co nformity with the JAS may be accredited as ROCBs. 
 
Question 11 
 
Could Japan explain in more detail how these th ree institutions; MAFF, RCBs and ROCBs monitor 
and manage JAS marks on imported products from overseas?  
RESPONSE 
 MAFF (Ministry of Agriculture, Forestry and Fishries) manages JAS marks, including for imported products, by certification system ba sed on the JAS Law. In the JAS certification 
system, MAFF accredits the RCBs and ROCBs and carries out the annual surveillance. WT/TPR/M/310/Add.1 
 
- 297 - 
 
Then RCBs and ROCBs certify the JAS pr oducers including foreign producers and 
implement the annual surveillance. Additionally, MAFF's officials regularly moni tor the retailed products with JAS marks 
including imported products.  
 
Question 12 
 
Could Japan clarify how Japanese agencies, which are in charge of TBT issues, examine and 
monitor foreign products after foreign enterprises receive a certification on their products? If so, 
are these products able to be certified via the agreed institutions in their home countries based on MRA agreements between Japan and parent countries? 
 
RESPONSE  
With regard to JAS, sampling tests of retaile d products including imported products are 
conducted under the plan decided by the Minist er of Agriculture, Forestry and Fisheries 
in addition to the monitoring explained abov e. Under the JAS Law, certification based on 
MRA is not permitted. However, the certifie d organic products from foreign countries 
whose organic certification system is recogniz ed by Japan as equivalent can be labelled 
as organic in Japan under a bilatera l organic equivalency recognition. 
 
Page 38 (Para 51) 
 
According to the authorities, SPS measures applied by Japan are based on the relevant 
international standards. Where such relevant international standards do not exist, SPS measures 
are based on scientific risk assessment, in accord ance with the WTO SPS Agreement. Additionally, 
the authorities state that, regarding food safety issues, the Japanese Food Safety Commission 
publishes the result of the risk assessments.  
 Question 13 
 
SPS measures applied by Japan are based on re levant international standards. Where such 
relevant international standards do not exist, SPS measures are based on a scientific risk assessment, in accordance with the WTO SPS Agr eement. A more detailed description of this 
'scientific risk assessment' needs to be presented.  
 RESPONSE 
 
In response to a request from risk manageme nt organizations, Food Safety Commission 
of Japan, FSCJ, conducts its risk assessmen t based on the discussion of the relevant 
experts who belong to the FSCJ's Expert Comm ittees which are established for individual 
hazards. The discussion is made on the basis of the latest scientific evidences. Meetings 
of the Expert Committees are basically open to public. FSCJ publishes a draft risk 
assessment report on the website and accept s comments for 30 days before concluding 
the report and submits it to a releva nt risk management organization.  
The final version of a risk assessment report is available at: http://www.fsc.go.jp/hyouka/index.html.  
 
Page 40 (Para. 53) 
 Japan currently imposes import prohibitions on beef and poultry from various countries to prevent 
the spread of BSE and avian flu.28 The authorities maintain that the process of lifting the import 
ban includes technical consultations, consideration of import requirements, and the implementation of risk assessment that takes due account of the World Organization for Animal 
Health (OIE) code, 29 and involves consultation with relevant domestic industries, consumers, and 
requesting countries. Japan has allowed beef imports from the United States, Canada, France, the Netherlands, Ireland and Poland under certain co nditions based on scientific review by FSC.  
 WT/TPR/M/310/Add.1 
 
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 Question 14 
 
Japan has allowed beef imports from the United States, Canada, France, the Netherlands, Ireland and Poland under certain conditions. Please explain what the 'certain conditions' are and how they 
are applied. 
 RESPONSE 
 
'Certain conditions' for importation of beef and beef offal are as follows:  i)  meat establishments are approved as eligible to export to Japan by the competent 
authority of the exporting country. 
ii)  exported beef and/or beef offal to Ja pan are derived from cattle within certain age 
and produced in a manner that ensures the hygienic removal of the specified risk 
materials (SRMs) comprising tonsils and distal ileum of the small intestine. 
iii)  health certificate, which certifies the ab ove requirements (i and ii), is issued by the 
competent authority of the exporting country  and is accompanied with the import.  
 
With regard to certain age described in the above ii), 30 months or under is applied for 
the United States, Canada, France, Ireland and Poland, and 12 months or under is 
applied for the Netherlands.  
 
Page 49 (Para 97) 
 
The total effective tax rate on corporations is about 34.62% including taxes on corporate incomes 
and local taxes. However, only about 30% of corporations have taxable profits.  
Question 15 
 
The Japanese government already announced its plan to cut corporate tax to below 30% and to begin by lowering the rate to 31.33% by FY2016. However, the reduced rate is still higher than the 
OECD's average rate, of around 25%. Also the targeted rate of below 30% appears too ambiguous 
to ensure the reduction of foreign investors' tax burden. Furthermore, it is agreed that the tax 
system is overly complicated in that it requires 14 payments annually which require up to 
300 hours of management time. Does the government have any specific plans to activate FDI by 
lowering the tax rate and simplifying the system in the coming years?   
RESPONSE 
 The effective corporate tax rate, currently at 34.62%, will be cut to 32.11% in FY2015 
and then to 31.33% in FY2016. 
 
Pages 50 (Para 105) 
 
According to the secretariat's report, companies wi th premises larger than 1,000 m2 and/or more 
than 100 employees in certain cities have to pay business office(local taxes) tax at ¥600 per m2 and 0.25% of total employee remuneration. 
 
Question 16 
 Although the government allows corporate tax-based incentives for companies creating 
employment and increasing wages, local taxe s, representing 0.25% of total employee 
remuneration, imposed on companies with more than 100 employees would reduce companies' incentives for hiring and increasing salary rates.  Is there any future plan to provide additional 
support for foreign companies to hire more employees and raise salaries?  
 RESPONSE 
 
The enterprise tax is an earmarked tax im posed focusing on benefit relationship 
between enterprises and administrative serv ices enjoyed by them, with a view to 
dealing with the increasing financial dema nd for maintaining and ameliorating city 
environment stemming from the concentrated building of enterprises. This tax shall be WT/TPR/M/310/Add.1 
 
- 299 - 
 
spent for maintenance and amelioration of tr ansportation infrastructure, parks, water 
supply, rivers, schools, hospitals, other city  facilities and prevention of environmental 
pollution and disaster.  
Japan regards the enterprise tax as an im portant tax which satisfies the financial 
demand to maintain and renovate these city fa cilities to deal with upcoming challenges 
such as removal of barrier for disabled people, strengthening earthquake resistance, and 
prevention of urban disaster and environment problems.  
 Page 56 (Para. 122) 
 
The AMA was amended in December 2013, inter alia, to abolish the hearing procedure of the Japan 
Fair Trade Commission (JFTC) for administrative appeals. Once the Act comes into force, any appeal regarding decisions of the JFTC will be su bject to the exclusive jurisdiction of the Tokyo 
District Court, with a panel of three or five judges hearing cases with a view to ensuring expertise 
and enhancing procedural fairness. The changes made to the AMA also seek to further improve hearing procedures within the JFTC prior to issuin g final orders, such as cease and desist orders. 
 
Question 17 
 Could Japan please explain the rationale and background of the abolition of the hearing procedure 
of the JFTC for administrative appeal in the AMA Amendment in 2013? 
 RESPONSE 
 
It has been pointed out, mainly by the bu siness people, that JFTC 's hearing procedure 
for administrative appeals lacks the appear ance of fairness as the entity taking 
administrative measures also determines wh ether such measures are appropriate. In 
response to such criticism, it was decided that the JFTC's hearing procedure should be 
abolished, and appeals against the JFTC's ad ministrative measures should be brought 
before the court. 
 
While it is essential for the JFTC to maintain  public confidence to its investigations and 
decisions, it is hoped that the abolition of  the hearing procedure minimizes the criticism 
about the appearance of fairness.  
 Question 18 
 Could Japan please explain whether the abolitio n of the hearing procedure of the JFTC for 
administrative appeal in the AMA Amendment in 2013 may, in the end, work against foreign firms in Japan? 
 
RESPONSE  
No. It does not work against foreign firms in Japan. 
 Page 57 (Para. 126 ) 
 
Most of Japan's EPAs provide for each party to take appropriate measures against anti-competitive activities in accordance with its laws and re gulations, and to cooperate in controlling anti-
competitive activities, e.g. by notifying the othe r party of enforcement activities, cooperation, 
coordination, requests for enforcement activities, and consideration of the other party's interests. 
Japan has three other bilateral cooperation agreements on anti-competitive activities, with Canada, the European Union, and the United Stat es. Furthermore, during the review period the 
JFTC concluded three memoranda on cooperation with the competition authorities of Viet Nam 
(28 August 2013), the Philippines (28 August 2013), and Brazil (24 April 2014).  
Question 19 
 
Could Japan please explain the content of the commonalities between what was included and 
emphasized in the bilateral cooperation agreements on anti-competitive activities with Canada, the 
EU, and the United States? WT/TPR/M/310/Add.1 
 
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 RESPONSE 
 The three bilateral cooperation agreements referred to in the question all include the provisions for 'Notification', 'Cooperation in Enforcement Activities' and 'Coordination of 
Enforcement Activities', etc. Please refer to the links below. 
http://www.jftc.go.jp/en/int_ relations/agreements.html.  
 
Question 20 
 
Could Japan please explain whether Japan has a plan to extend the bilateral cooperation agreements on anti-competitive activities with other countries? 
 
RESPONSE  
Although Japan does not have any plans at th is moment, the JFTC will actively work for 
the promotion of international cooper ation through bilateral frameworks. 
 
Page 61 (Para. 135) 
 
In 2014, the Patent Act was revised to provide relief  measures so that applicants are entitled to 
extend certain periods required for filing, exam ination, and other procedures when they have 
compelling reasons, e.g. followin g disasters. These measures will also be applied to the same 
cases covered by the Utility Model Act, Design Act, Trademark Act, and Act on International 
Applications under the Patent Cooperation Treaty.  
 
Question 21 
 
Can Japan provide more examples of the compelling reasons, other than disasters, for which an 
applicant is entitled to extend certain periods required for filing, examination, and other procedures?   
RESPONSE 
 In addition to disasters, "sudden illnesses or  accidents" of an applicant/agent can be 
one of possible examples of  the compelling reasons. 
 Question 22 
 Can 'unreasonable delays' that occur in granting th e patent be interpreted as being included in the 
'compelling reasons' under the Patent Act?   
RESPONSE 
 'Unreasonable delays' that occur in granting  the patent cannot be interpreted as being 
included in the 'compelling reasons'. 
 Page 64 (Para. 148) 
 In May 2014, the Trademark Act was revised to protect non-traditional marks (i.e. sound, motion, hologram, color per se, and position) already protected in Europe and the United States. This aims to support companies' diverse brand strategies. The revised Act is expected to come into effect 
in Spring 2015. 
 Question 23 
 There is a slight difference between the United St ates and the European Union in regulating non-
traditional marks such as sound or odors. In the United States, the requirement for a drawing does 
not apply to a sound mark or a scent mark. The European Union, however, requires items that 
cannot be recognized visually to be expressed real istically with a sign, letter, figure, or by any 
other visual means. Does the Trademark Act, revised in May 2014, require visual expression?  WT/TPR/M/310/Add.1 
 
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RESPONSE 
 The Trademark Act, revised in May 2014, does  not define non-traditional trademarks to 
be expressed realistically as in the European Union. 
However, it is necessary to express trademar ks visually and describe the details of the 
trademarks other than sound marks in request for application in case applicants desire 
to register non-traditional trademarks.  
 
Page 72 (Para. 13) 
 Agricultural policy continues to emphasize self-sufficiency, and the Basic Plan sets self-sufficiency 
targets for FY2020 of 50% on a calorie basis and 70%  on a production value basis. The Action Plan 
also emphasizes the importance of protecting infrastructure from natural disasters and nuclear accidents, and sets out several objectives to improve the viability of the agricultural sector and 
productivity including: 
 Rebuilding exports after the 2011 earthquake, tsunami, and nuclear power plant accident as well 
as promotion abroad and introducing a system for protecting geographical indications.  
 Question 24 
 
Has the Ministry of Agriculture of Japan put forward special measures for the rebuilding of 
agricultural goods exports especially after the 2011 nuclear power plant accident?  
RESPONSE 
 Japan formulated the export strategy in 2013 in order to raise annual exports of 
Japanese agricultural, forestry and fisher y products, and foods to one trillion yen by 
2020.  Page 73 (Paras 15-16) 
 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. In 
addition, the government subsidizes the Agricultural Insurance Scheme and provides reinsurance to local insurance funds. 
 
Question 25 
 In agricultural policy, a consensus contained in the DDA Bali package is that export subsidies shall 
be decreased or removed. In this context, ho w much support in the area of exports is the 
Japanese government willing to make? Also, please state the requirements of the government export subsidies for the agriculture industry. 
 
RESPONSE  
Japan does not provide nor intend to provide any export subsidy under the Agreement 
on Agriculture.  Page 75 (Para. 35) 
 In December 2013, the government determined a plan to phase out production quotas for rice by 2018 with the objective of giving farmers greater pr oduction flexibility. As part of the reform, the 
first component of the Farm Income Supports Payments (¥15,000 per 0.1 ha) would be halved in 
2014 and abolished in the 2018 crop year while the second component was abolished in the 2014 crop year.  
 WT/TPR/M/310/Add.1 
 
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 Question 26 
 
Farm Income Support Payment for rice that is paid to the farmers who participated in the production adjustment program is expected to be abolished in 2018. What were the factors behind 
the changes in this major agricultural policy that had been maintained for nearly 50 years?  
 RESPONSE 
 
For the further development of paddy farming, rice policy reform was necessary to improve the environment where farmers and agricultural organizations can manage 
their production based on their own decision in response to market demand. 
 
As was stated in The Plan for Creating Dynamism through Agriculture, Forestry and Fisheries and Local Communities decided in the end of 2013, the Japanese government 
will promote export of agricultural prod ucts, collaboration among the primary, 
secondary and tertiary industries (sixth indu stry), and consolidation of farmland. Based 
on these reforms, the government will phas e out rice production adjustment program 
that has lasted for more than 40 years.  
 Question 27 
 
Is it a foregone conclusion that it will have significant impact on small farmers who were protected 
by this system, and are there any available alternatives?  
RESPONSE 
 Direct Payment for Rice targeting all farmers was introduced in 2010. 
 
Because this payment is not suitable for stru ctural reform for agriculture, it will be 
abolished.  
 
Part II: Questions – Government Report WT/TPR/G/310 
 
Page 6 (Para. 14) 
 The data concerning the Economic Partnership Agreements is summarized in the Table 2.1 below (as of December 2014). 
 
Question 28 
 According to Table 2.1, Japan recently conducte d a negotiation with Turkey. Please explain the 
objectives and expected benefi ts of this negotiation.  
 RESPONSE 
 
"Report of the Joint Study Group for an Ec onomic Partnership Agreement (EPA) between 
the Republic of Turkey and Japan", which wa s published in July 2013, concluded that a 
comprehensive, high-level, and WTO-consistent EPA between Japan and Turkey would 
contribute to bringing about significant be nefits, which would further strengthen the 
economic relations between the two countri es. Based on the recommendation above, 
Japan launched negotiation with Turkey in December 2014.  
 
Question 29 
 
What is Japan's position on the Trans-Pacific Partnership (TPP) and the FTA with the EU which is 
currently under way?   
RESPONSE 
 (TPP)  Trans-Pacific Partnership (TPP) is an ambi tious attempt to create an integrated 
economic area in the Asia-Pacific region , which has fast-growing economies, to WT/TPR/M/310/Add.1 
 
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construct new 21st century rules not only on market access for goods but also on a 
broad range of areas such as services, inve stment, intellectual property rights, state-
owned enterprises and environment. The go vernment of Japan continues its maximum 
efforts toward concluding TPP negotiations with all TPP members as soon as possible.  
(EPA with EU). 
Japan and the EU are two advanced market economies which account for about 36% of 
the global trade value. Therefore, the Japa n-EU EPA is an important pillar of Japan's 
growth strategy and a driving force for further advancing both economies. Japan 
continues to accelerate the negotiations to ward the realization of a comprehensive and 
high-level EPA, aiming to reach agr eement in principle during this year.   
 
Page 8 (Para. 17) 
 
APEC's core mission continues to be further regional economic integration and expansion of trade 
in the Asia-Pacific region. APEC has pursued these objectives in 2014 by advancing Global Value 
Chains and Supply Chain Connectivity, and addressing next-generation trade and investment issues, including through our trade agreements and the Free Trade Area of the Asia-Pacific 
(FTAAP), which is a major instrument to further APEC's regional economic integration agenda. In 
this regard, Japan took the lead in manufacturing related services in supply chains/value chains as one of the next generation trade and investment issues to advance the FTAAP in line with the agreed "Beijing Roadmap for APEC's Contribution to the Realization of the FTAAP" in 2014. Japan 
also took the lead in two work streams, namely "Improve the investment climate for GVCs 
development" and "Enhance resiliency of GVCs" under the "APEC Strategic Blueprint for Promoting 
Global Value Chain Development and Cooperation" . In addition, Japan has pursued the advance of 
APEC green growth and sustainable development ob jectives by taking the lead in environmental 
services and contributing to capacity building  for implementation of the 2012 APEC Leaders' 
commitments on the APEC List of Environmental Goods (54 items), which aim to reduce applied 
tariff rates to 5% or less by the end of 2015, taking into account each economy's economic 
circumstances.  Question 30 
 Japan took the lead in two work streams, namely those of "Improve the investment climate for GVCs development" and "Enhance resiliency of GVCs" for promoting Global Value Chains at APEC. 
Could Japan explain concretely the contents of this work?  
 RESPONSE 
 
Promoting sustainable development and growth  o f  t h e  A P E C  r e g i o n  i s  i m p o r t a n t  t o  
develop more efficient global value chains. Japan registered as the lead economy of 
workstream6, "Improving the investment climate for GVCs Development", and 
workstream8, "Enhance resiliency of GVCs", under the GVCs strategic blueprint which 
was endorsed by the leaders last year.  
As for "Improve the investment climate for GVCs development", the work plan consists 
of three steps. First, conduct a survey to take  stock of the present state of invest climate 
in the APEC region. This survey not only fo cuses on the legal and regulatory aspects of 
the investment climate but also the operatio nal aspects of these laws and regulations. 
Second, hold public private dialogues (PPDs) to discuss the challenges and measures for 
further improving the investment climate to ensure effective investment facilitation in 
the region. Third, based on the result of the survey and PPDs, develop an action plan to 
further improve the investment climate in the region around 2017. 
 Regarding "Enhance resiliency of GVCs", Japa n will put forward new initiatives to make 
a collaborative effort to enhance cross-bord er value chain resilience in 2015 and 2016, 
with regard to one or some of the following sub-issues: 1) natural disaster risks, 2) 
logistics and infrastructure risks, 3) market ri sks, 4) reregulate risk s, 5) political risks, 
in line with the organization of the analysis in the APEC Policy Support Unit (PSU) Study 
in 2014.   In 2015, Japan will hold capacity building seminar on enhancing resilience of supply 
chains/value chains against natural disa ster, and develop a guidebook to enhance WT/TPR/M/310/Add.1 
 
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 understanding on resilience of GSC/GVCs base d on compilation of best practices in the 
region.  Question 31 
 Please elaborate on the future plan for implemen tation of the APEC green growth and sustainable 
development objectives. 
 
RESPONSE  In APEC, Japan proposed to develop a plan of action which enhances trade liberalization, 
facilitation, and cooperation of environmental services in 2015, and it was endorsed in 
AMM (APEC Ministerial Meeting) in 2014.  
Page 9 (Para. 27) 
 
The Japanese Government has established Japan Centers in six Russian cities, through which it 
offers technical assistance aimed at cultivating and training personnel who are expected to play an 
important role in the Russian economy and Japa n-Russia business and economic relations. The 
Centers also proactively support business activities by providing institutional and corporate information offering consulting services, etc. in order to promote business relations between 
companies of the two countries. 
 Question 32 
 Are "Japan Centres" established in other countries?   
RESPONSE 
 The Japan Centers are also established in 10  cities of 9 countries, namely Cambodia, 
Viet Nam (Hanoi and Ho chi minh), Myanma r, Laos, Mongolia, Uzbekistan, Kyrgyz 
Republic, Kazakhstan and Ukraine. 
 Question 33 
 Could Japan explain how "Japan Centres" work within the context of Russian cities?  
RESPONSE 
 Six Japan Centers offers technical assist ance and support for business activities 
between Japan and Russian Federation, cons idering local characteristics and business 
opportunity, which are specific to location of each branch. 
 Page 10 (Para. 31) 
 In order to strengthen the economic relationsh ip between Japan and Republic of Korea, the 
12
th Japan-Republic of Korea High-Level Economic  Consultation was held on 11 November 2013. 
Both sides exchanged views to promote bilate ral trade and investment, and reaffirmed the 
importance of cooperation on global issues such  as energy security and the environment. In 
addition, both sides confirmed the recent develo pment of the cooperation between Japanese and 
Korean enterprises in third countries on projects of resource development and infrastructure, and 
exchanged views to promote further bilateral cooperation in various economic fields. 
 Question 34 
 Although several rounds of working-level and Director-General level consultations have been held, the official negotiation with Korea is now off. What are Japan's thoughts with regard to the 
prospects of this negotiation?  
 WT/TPR/M/310/Add.1 
 
- 305 - 
 
RESPONSE 
 In order to strengthen the economic relationship between Japan and the Republic of Korea, both sides have been having cons ultations in the various levels. The 13
th Japan-
Republic of Korea High Level Econ omic Consultation was held on 8 January, 2015. Japan 
will continue consultations and cooperation in various economic areas. 
Question 35 
 
In the Japanese government's opinion, what are the necessary conditions for an early resumption of this negotiation?   
RESPONSE 
 In order to strengthen the economic relationship between Japan and the Republic of 
Korea, both sides have been having consul tations in the various levels. Japan will 
continue consultations and cooperat ion in various economic areas. 
 
Page 11 (Para. 42) 
 
Since December 2011, Japan has been implementing the "Program for Promoting Japan as an Asian Business Centre and Direct Investment into Japan". Location subsidies, tax incentives and 
reduced patent fees for R&D sites are being offered under the programme. The authorities stated 
that they had a site location subsidy for glob al companies from FY2010 to FY2014 and the total 
amount of subsidy was ¥4.0 billion. 
 
Question 36 
 
Due to the policies mentioned above, how many R&D headquarters and Asian headquarters have 
been established in Japan?   RESPONSE 
 
The site location subsidy program stated in para. 42 is intended to sustain and strengthen high-value-added business sites in  Japan and to achieve sustainable growth 
of the Japanese economy by supporting gl obal companies which have international 
operations in establishing new high-value -added sites in Japan, such as regional 
headquarters or R&D sites, and by inviti ng and building high-value-added business 
functions that can leverage the strength  of the Japanese economy. There are 
30 subsidized projects selected under th e subsidy program, of which 27 are for 
establishing R&D sites, 1 is for establishing a regional headquarter, and 2 are for establishing both regional headqu arters and R&D sites in Japan. WT/TPR/M/310/Add.1 
 
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 34. EL SALVADOR 
En el reporte de la Secretaría, en el párrafo 1.4, se indica que " lo referente a la política fiscal, la 
estrategia consistía en una combinación de estímulos económicos a corto plazo y medidas a medio plazo con la finalidad de conseguir la consolidación fiscal. A principios de 2013 se aprobó un 
paquete fiscal por valor de 10,3 billones de yenes (unos 100.000 millones de dólares EE.UU., que 
representa alrededor del 2% del PIB ). …"  
 
Pregunta 
 
Podría Japón brindar información sobre los resultados concretos que su Gobierno ha obtenido con dicho paquete fiscal, cuáles sectores fueron beneficiados y cómo dicho paquete ha contribuido a 
superar la deflación y revitalizar la economía japonesa. 
 In the Secretariat report, the paragraph 1.4, states that "as regards fiscal policy, strategy 
consisted of a combination of economic stimulus in the short term and medium-term measures in 
order to achieve fiscal consolidation. In early 2013 approved a fiscal package worth 10.3 trillion yen (US$100,000 million, representing about 2% of GDP).  
 
Question 
 Could Japan provide information on the concrete results that the Government had obtained such 
fiscal package, which sectors were benefited an d how that package has helped to overcome 
deflation and revitalize the Japanese economy?  
RESPONSE 
 1. The Abe Cabinet aims to end persistent  deflation soon and to revitalize the 
Japanese economy. For this purpose, the government has advanced "three-arrows" 
strategy called "Abenomics", consisting of a ggressive monetary policy, flexible fiscal 
policy, including the fiscal package approved in early 2013, and the growth strategy that 
promotes private investment in an integrated manner.  
 
2. As a result of these policy measures, virt uous cycle of economy is emerging, which 
is shown by the following economic indicators. 
 
- The active job openings-to-applicants ra tio is the highest level in 22 years, 
- Increase in wages is more than 2 per ce nt on average, which is the highest in 
the past 15 years,  
- Corporate earnings are at the highest level in the record,  
- Annual number of business failures are less  than 10,000 for the first time in 
24 years, 
- Real GDP increased by 1.8% in two years.   
 WT/TPR/M/310/Add.1 
 
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35. URUGUAY 
Question 1 
 
1.  En lo referente a los operadores económicos autorizados, según el párrafo 3.3 del Informe 
de la Secretaría, en las cargas marítimas los operadores económicos autorizados tienen un tiempo 
de levante de 6 minutos, en tanto que los operadores económicos no autorizados tienen un tiempo de 156 minutos (26 veces mayor). ¿Podría Japón explicar brevemente cuáles son los 
procedimientos aduaneros aplicables a los operadores económicos autorizados que mayormente 
explican dicha diferencia (trámites y presentación de la información previo a la llegada de la mercadería, levante previo a la determinación definitiva de los derechos de Aduana, etc.)?  
1.  (English) With regard to Authorized Economic Operators (AEOs), according to paragraph 3.3 
of the Report by the Secretariat, in maritime cargo authorized by economic operators have a lift time of 6 minutes, while unauthorized traders have a 156 minutes (26 times more). Could you 
briefly explain what Japan customs procedures for AEOs make this huge difference (procedures 
and presenting before the arrival of the merchandise information, prior to the final determination of the rights of Customs lift, are etc. )? 
 
RESPONSE  Japan considers the less frequent documentar y examination and physical inspection of 
AEO imported cargos reflecting the compliance of  AEO to be a crucial factor for reducing 
time for customs clearance. Japan has a view  that this would be a major benefit for 
AEOs. 
 
Question 2 
 
2.  Japón mantiene 159 líneas arancelarias sin consolidar, fundamentalmente en productos de 
la pesca, aceites de petróleo y manufacturas de madera (párrafo 3.19). ¿Piensa Japón consolidar dichas líneas a la brevedad? ¿Cuáles son las razones por las cuales concentra los productos no consolidados en estos tres sectores? 
 
2  (English) Japan maintains 159 tariff lines unbound, mainly in fish products, petroleum oils and wood products (paragraph 3.19). Do you think Japan consolidate these lines shortly? Why 
unbound concentrated in these three sectors product? 
 RESPONSE 
 
Some of the tariff lines are unbound. These tariffs are set in a consistent manner with the WTO agreement.  
Japan will continue to engage in the discu ssion in the WTO and set appropriate tariffs, 
considering the progress and results of the DDA negotiations.  
 
Question 3 
 
3.  ¿Puede Japón desarrollar brevemente cuáles son los principales cambios introducidos por la 
Política Básica de Promoción de la Industria Frutícola de 2010 en relación a la anteriormente 
vigente? ¿Cuáles son las principales frutas clasificadas como "frutas de mayor valor" hacia las cuales Japón intenta reorientar la producción de los agricultores?  
3.  (English) Can Japan develop briefly what are the main changes introduced by the Basic 
Policy for the Promotion of Fruit Industry in 2010 compared with the one existed previously? What are the main fruits classified as "fruits of greater value" to which Japan tries to reorient production 
of farmers? 
 RESPONSE 
 
-  Changes from the policy of 2010 WT/TPR/M/310/Add.1 
 
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 In addition to the measures referred to in  the former Basic Policy for Fruit Industry 
Promotion in 2005, MAFF started a financial support to farmers to cover their income decline during no profit period after replanting.   
-  The fruits of greater value 
 "The fruits of greater value" are new varietie s and refer to a wide range of fruits. They 
are developed in order to respond to the n eeds of consumers and suppliers. They have 
characteristics such as superiority in  taste and suitability for processing.  
 
__________