WORLD TRADE  
ORGANIZATION  G/STR/Q1/JPN/12 
16 November 2010 
 (10-6114) 
Working Party on 
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
Replies to Follow-up Questions Posed by AUSTRALIA1 Concerning   
the New and Full Article XVII Notification of JAPAN2 
 
  The following communication, dated 10 November 2010, is being circulated at the request of 
the Delegation of Japan.    
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Follow-up Questions 
 
 Further to Australia's question to Japan in  2009 regarding the provisions for imported 
wheat destined for US military bases and luxu ry hotels under the New Staple Food Law 
Enforcement Ordinance, Article 13-2 and the Ne w Staple Food Law Enforcement Regulations 
Article 25, Australia request further details including:  Q1. What import volumes are permitted under each of these instruments?  
Reply
 
  (a) There are no limits on the volumes of wheat imports destined for US military bases, 
as long as the wheat are materials or supplies provided for in paragraph 2 of ARTICLE XI of the "Agreement under Article VI of the Treaty of Mutual Cooperation and Security between Japan and the United States of America regarding 
Facilities and Areas and the Status of Unite d States Armed Forces in Japan".  (See 
below). 
  (b) With regard to the wheat flour which is imported by persons who run a registered 
international tourist hotel with certificati on issued by the Minister of Agriculture, 
Forestry and Fisheries of Government of Japan, the total quantity in the 2006 Fiscal 
Year was 9 metric tons.  There has been no record of any further importation since then. 
 
Q2. Can Japan explain the eligibility requirements needed to access these provisions? 
 Reply
 
 
(A) The eligibility requirement is prescribed by  paragraphs 2 and 3 of Article XI of the 
"Agreement under Article VI of the Treaty of  Mutual Cooperation and Security between 
                                                      
1 G/STR/Q1/JPN/10. 
2 G/STR/N/12/JPN. G/STR/Q1/JPN/12 
Page 2  
 
  Japan and the United States of America regarding Facilities and Areas and the Status of 
United States Armed Forces in Japan".  (See below). 
 
 Agreement under Article VI of the Treaty of Mutual Cooperation and 
Security between Japan and the United States of America, regarding 
Facilities and Areas and the Status of United States Armed Forces in 
Japan 
ARTICLE XI 
 
1.  Save as provided in this Agreement, member s of the United States armed forces, the civilian 
component, and their dependents shall be subject to  the laws and regulations administered by the 
customs authorities of Japan.  2.  All materials, supplies and equipment imported by the United States armed forces, the 
authorized procurement agencies of the United States  armed forces, or by the organizations provided 
for in Article XV, for the official use of the Unite d States armed forces or for the use of the members 
of the United States armed forces, the civilian co mponent, and their dependents, and materials, 
supplies and equipment which are to be used excl usively by the United States armed forces or are 
ultimately to be incorporated into articles or fac ilities used by such forces, shall be permitted entry 
into Japan ; such entry shall be free from customs duties and other such charges. Appropriate 
certification shall be made that such materials,  supplies and equipment are being imported by the 
United States armed forces, the authorized procurem ent agencies of the United States armed forces, or 
by the organizations provided for in Article XV, or , in the case of materials, supplies and equipment 
to be used exclusively by the Unite d States armed forces or ultimately to be incorporated into articles 
or facilities used by such forces, th at delivery thereof is to be take n by the United States armed forces 
for the purposes specified above. 
 
3.  Property consigned to and for the personal u se of members of the United States armed forces, 
the civilian component, and their dependents, sha ll be subject to customs duties and other such 
charges, except that no duties or char ges shall be paid with respect to:  
  (a)  Furniture and household goods for their private use imported by the members of the 
United States armed forces or civilian compone nt when they first arrive to serve in 
Japan or by their dependents when they firs t arrive for reunion with members of such 
forces or civilian component, and personal e ffects for private use brought by the said 
persons upon entrance . 
 
 (b)  Vehicles and parts imported by members of the United States armed forces or civilian 
component for the private use of themselves or their dependents. 
  (c)  Reasonable quantities of
 clothing and household goods of a type which would 
ordinarily be purchased in the United Stat es for everyday use for the private use of 
members of the United States armed forces, civilian component, and their 
dependents, which are mailed into Japan  through United States military post offices . 
 
ARTICLE XV 
 
1. (a)  Navy exchanges, post exchanges, messes,  social clubs, theaters, newspapers and other 
non-appropriated fund organizati ons authorized and regulated by the United States 
military authorities  may be established in the facilities and areas in use by the 
United States armed forces for the use of  members of such forces, the civilian 
component, and their dependents. Except as otherwise provided in this Agreement,  G/STR/Q1/JPN/12 
 Page 3 
 
 
  such organizations shall not be subject to  Japanese regulations, license, fees, taxes or 
similar controls. 
  (b)  When a newspaper authorized and regul ated by the United States military authorities 
is sold to the general public, it shall be subject to Japanese regulations, license, fees, 
taxes or similar controls so far as such circulation is concerned. 
 2.  No Japanese tax shall be imposed on sales of merchandise and services by such organizations, except as provided in paragraph 1 (b), but purchases within Japan of merchandise and supplies by such organizations shall be subject to Japanese taxes. 
 
3.  Except as such disposal may be authorized by the Japanese and United States authorities in 
accordance with mutually agreed conditions, goods which are sold by such organizations shall not be 
disposed of in Japan to persons not authori zed to make purchases from such organizations. 
 
4.  The organizations referred to in this Article  shall provide such information to the Japanese 
authorities as is required by Japanese tax legislation.  (B) With regard to the requirement for the impor tation of the wheat flour which is used in a 
registered international tourist hotel, the said wh eat flour is what is being imported with the 
certification issued by the Minister of Agriculture, Forestry and Fisheries of Government of 
Japan on the condition that it will be used in an international tourist hotel registered by the 
Article 3 of the Act for the Developm ent of International Tourist Hotels. 
 
 Japan will recall its response to Australia's  questions regarding the ALIC's role in 
importing sugar into Japan.  Australia noted that Japan's reply set out in G/STR/Q1/JPN/9 
asserted that ALIC is not an STE for sugar, but  still collects revenue in connection with the 
importation of sugar for those importers seeking preferential market access.  
 Q3. Can Japan explain whether it considers the revenue collected by ALIC to be "other 
duties and charges (ODC)"? 
 Reply
 
  The revenue (levy) collected by ALIC is a part  of "the sum of tariff and levy" that has been 
bound in Japan's Schedule (Section A-1 of Part I).  
 
 
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