WORLD TRADE  
ORGANIZATION  G/STR/N/11/JPN 
14 November 2006 
 
 (06-5494) 
Working Party on  
State Trading Enterprises Original:   English 
 
 
 
STATE TRADING 
 
New and Full Notification Pursuant to Article XVII:4(a)  
of the GATT 1994 and Paragra ph 1 of the Understanding on  
the Interpretation of Article XVII  
 
JAPAN 
  
 The following communication, dated 10 November 2006, is being circulated at the request of 
the Delegation of Japan.  
_______________ 
 
 I. LEAF TOBACCO 
1. Enumeration of State Trading Enterprises 
A. 
IDENTIFICATION OF STATE TRADING ENTERPRISES  
 Japan Tobacco Inc. (JT) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Leaf tobacco (HS No. 2401.10,  2401.20,  2401.30, 2403.91) 
 2. Reason and Purpose 
 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
  
 The tobacco production is monopolized by JT for promoting sound development of the 
tobacco industry under the provisions of the Tob acco Business Law.  Although private traders can 
import leaf tobacco, this monopoly in effect renders all the importation of leaf tobacco for the manufacture of tobacco in Japan depe ndent upon subsequent purchase by JT. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 The monopoly of production of manufactured to bacco is stipulated in Article 8 of the 
Tobacco Business Law. 
 G/STR/N/11/JPN 
Page 2  
 
  3. Description of the Functioning of the State Trading Enterprise 
 
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 JT is engaged predominantly in the manufactur e and sales of tobacco products.  JT is also 
diversifying its business activities into pharmaceu ticals, food, real estate and engineering. 
 
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 The importation of leaf tobacco and manufact ured tobacco has been liberalized since 
1 April 1985.  However, as a consequence of th e continuing monopoly of manufacturing tobacco by 
the Japan Tobacco Inc. (JT), the importation of leaf tobacco for the manufacture of tobacco in Japan is 
in effect dependent upon the purchase by JT. 
 
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 Any entity can engage in importation without any allowance. 
 
D. HOW IMPORT/EXPORT LEVELS ARE ES TABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 JT imports leaf tobacco on the basis of co mmercial consideration taking into account supply 
and demand situations of manufactured tobacco, as well as quality, market price and other relevant 
characteristics of leaf tobacco.  
E. HOW EXPORT PRICES ARE DETERMINED 
  JT exports leaf tobacco on the basis of commercial consideration.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 JT does not resale imported leaf tobacco. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NE GOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 No long-term contracts are negotiated by JT.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  JT is obligated to acquire all the leaf to bacco produced by domestic tobacco cultivators who 
enter into contracted pur chase agreements with JT. 
 
4. Statistical Information  
 (See attached Tables I – III on Tobacco). 
  G/STR/N/11/JPN 
 Page 3 
 
 
  II. OPIUM 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES. 
 
 The Government of Japan (Ministr y of Health, Labour and Welfare) 
 
B. DESCRIPTION  OF PRODUCTS  AFFECTED  (INCLUDING  TARIFF  ITEM  NUMBER(S)  
ENCOMPASSED  IN PRODUCT  DESCRIPTION). 
 Opium (HS No. 13.02.11) 
 
2. Reason and Purpose 
A. REASON  OF PURPOSE  FOR  ESTABLISHING  AND/OR  MAINTAINING  STATE  TRADING  
ENTERPRISE 
 The purpose for maintaining the state trading en terprise is to achieve the rational supply of 
opium for medical and scientific purposes, as well as to conduct necessary control over the cultivation 
of opium poppy, and the transfer, receipt and possession and other relevant activities concerning 
opium and poppy straw. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 Under the provisions of the Opium Law, only th e Ministry of Health, Labour and Welfare is 
authorized as a state trading en terprise, which can conduct impor tation and exportation of opium, 
purchase opium from the opium poppy cultivators and from A class research cultivators and sell 
opium to narcotics manufacturers a nd narcotics research institution. 
  The monopoly of import and export opium is s tipulated in Article 2 of the Opium Law. 
 
 The above mentioned regulations are based on the provision of the Single Convention of 
Narcotic Drugs, 1961.  
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY  STATEMENT  PROVIDING  OVERVIEW  OF OPERATIONS  OF THE  STATE  
TRADING  ENTERPRISE 
 The Ministry of Health, Labour and Welfare, as a state trading enterprise, imports opium from 
India through entrusted person by the Mi nistry of Health, Labour and Welfare. 
 
 The Ministry of Health, Labour and Welfare de termines the quantity of opium which is to be 
imported to Japan, on the basis of factors such as demand for opium in Japan and supply of opium in exporting country.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 The rights to import and to export opium belong exclusively to the Ministry of Health, Labour 
and Welfare or persons entrusted by the Ministry of Health, Labour and Welfare. G/STR/N/11/JPN 
Page 4  
 
   
 The Ministry of Health, Labour and Welf are purchases all the opium which opium poppy 
cultivators or A class research  cultivators have gathered. 
  The Ministry of Health, Labour and Welfare determines the price for purchase of the opium 
from opium poppy cultivators, after consulting with th e Ministry of Finance, on the basis of factors 
such as the condition of production by opium poppy cultivators, import price of opium and other economic conditions.  
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 There are no entities allowed to engage in impor tation and exportation other than the Ministry 
of Health, Labour and Welfare.  
D. HOW IMPORT/EXPORT LEVELS ARE ES TABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 The Ministry of Health, Labour and Welfare de termines the quantity of opium which is to be 
imported to Japan on the basis of factors such as demand for opium in Japan and supply of opium in 
exporting country. 
 
E. HOW EXPORT PRICES ARE DETERMINED 
 
 The Ministry of Health, Labour and Welfare does not export opium. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 The Ministry of Health, Labour and Welfare determines the resale price on the basis of 
factors such as import price and other expense. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE  GOVERNMENT
 
 
 No long-term contracts are negotiated by th e Ministry of Health, Labour and Welfare. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
 
 The Ministry of Health, Labour and Welfare imports opium through en trusted person by the 
Ministry and purchases all the opium gathered by opium poppy cultivators or A class research 
cultivators.  The Ministry of Health, Labour and We lfare sells opium to narcotics manufacturers and 
proprietors of narcotics research institution. 
 
4. Statistical Information  
 (See attached Tables I – III on Opium). 
 5. Reason why no foreign trade has taken place (as appropriate) 
 
 All imported opium is used for medical and scientific purposes.   Japan does not produce opium for export.  G/STR/N/11/JPN 
 Page 5 
 
 
   
III. ALCOHOL 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 The New Energy and Industrial Technolog y Development Organization(NEDO)  was 
applicable as a State Trading Enterprise until 31. Ma rch 2006.  Since 1 April 2006, there has been no 
state trading enterprise in the alcohol market. 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PR ODUCT DESCRIPTION)  
 
 Alcohol of an alcoholic strength by volume of 90 per cent vol. or higher    
2. Reason and Purpose 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 The monopoly of a certain type of alcohol (defined above) which had lasted for more than 60 years was abolished on 31 March 2001.  There w as a fear that a sudden liberalization of the 
alcohol market by the abolishment of the monopoly system might result in unfavourable influences in 
distribution and price mainly for users in remote locations and small users due to undeveloped private 
distribution networks.  In order to alleviate such  drastic change in the market, NEDO had undertaken, 
as a temporary step, all purchases/sales of alcohol fo r five years from 1 April 2001.  On 1.April 2006, 
the monopoly function of the NEDO in terms of alc ohol trading ended, and the alcohol market was 
liberalized. Therefore, there has been no state trading enterprise in the alcohol market since 
1 April 2006.   
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 Until 31 March 2006, Appendix Article 2 and 6 of the Alcohol Business Law stipulated that 
all purchases and sales of alcohol were to be conducted by NEDO.  
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 Until 31 March 2006, NEDO undertook all purchases/sales of alcohol which was imported by permitted importers and produ ced by permitted producers. 
  
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 Until 31 March 2006, NEDO was granted the func tion of monopoly to purchase and sell all 
alcohol which was imported by permitted impor ters and produced by permitted producers. 
 G/STR/N/11/JPN 
Page 6  
 
  C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION 
 
 Any entity can import provided they have received permission.  
D. HOW IMPORT/EXPORT LEVELS ARE ES TABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 Import levels by permitted importers are not restricted under the Alcohol Business Law. 
 
E. HOW EXPORT PRICES ARE DETERMINED 
  Export prices are not restricted under the Alcohol Business Law.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
  Until 31 March 2006, NEDO was required to se ll the alcohol at the prices approved by 
Ministry of Economy, Trade and Industry under A ppendix Article 3 of the Alcohol Business Law,. 
Since 1.April 2006, resale prices are no longer restricted under the Alcohol Business Law. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT. 
 
 NEDO did not negotiate long term contracts.   
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
 
 NEDO had undertaken all purchases of alcohol which was imported by permitted importers 
and produced by permitted producers. NEDO sold th e alcohol to permitted distributors or permitted 
users.  However, this function of monopoly ended on 31 March 2006 as mentioned in 2.A.  
 
4. Statistical Information  
 (See attached Tables I – III on Alcohol). 
 
IV. RICE, WHEAT AND BARLEY 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 The Government of Japan  
 The Ministry of Agriculture, Forestry & Fi sheries (hereinafter referred to as “MAFF”) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Rice and its worked and/or prepared products (hereinafter referred to as “rice”).  
  Wheat, meslin, triticale and their processed products (hereinafter referred to as “wheat”). 
  G/STR/N/11/JPN 
 Page 7 
 
 
   Barley and its processed products (hereinafter re ferred to as “barley”).  (As for the tariff item 
numbers of specific products, see attached).  
2. Reason and Purpose 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 MAFF is authorized to take measures to st abilize supply and demand situations as well as 
prices for such staple foods as rice, wheat and barley, for promoting stability of national life and 
economy, according to the Law for Stabilization of Supply-Demand and Price of Staple Food. 
 
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 MAFF can import  rice, wheat and barley, and can export rice when particular necessity exist, 
based on the Law for Stabilization of Supply-Demand and Price of Staple Food. 
  Legal provisions – Articles 30, 31, 32, 42, 43 and 44 of the Law for Stabilization of Supply-Demand and Price of Staple Food.  
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 MAFF mainly conducts the import of rice under the minimum access opportunities and wheat 
and barley under the current access opportunities,  based on the Schedule XXXVIII-JAPAN in the 
WTO Agreement.   MAFF is not involved, in the marketing or di stribution of over-quota imports of rice, wheat 
and barley, except for the collection of a part of over-quota tariffs of such imports. 
 
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 
 MAFF can import rice, wheat and barley, and can  export rice when particular necessity exists, 
based on the Law for Stabilization of Supply-Demand and Price of Staple Food.   MAFF collects mark-ups on imported rice, wh eat and barley which are bound in the Schedule 
XXXVIII-JAPAN in the WTO Agreement.  
 
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 Private traders can freely im port rice, wheat and barley subject to over-quota tariffs 
established in the Schedule XXXVIII-JAPAN in the WTO Agreement. 
 G/STR/N/11/JPN 
Page 8  
 
  D. HOW IMPORT/EXPORT LEVELS ARE ES TABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 MAFF imports rice under the minimum access oppor tunities and wheat and barley under the 
current access opportunities, both of which are established in the Schedule XXXVIII-JAPAN in the 
WTO Agreement.   MAFF sells rice destined for food aid pursuant  to the Government’s decision.  The quantity 
for food aid is determined, taking account of request s from recipient countries, relevant international 
rules on food aid etc.  
E. HOW EXPORT PRICES ARE DETERMINED 
 
 MAFF conducts no commercial export of rice, wheat and barley. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 The sales prices for imported rice, wheat and barley are determined on the basis of such 
factors as import prices, management costs and other economic conditions.   The sales prices for imported rice, wheat and barley are not to be above the sum of the 
respective purchase prices and the respective mark-ups bound in the WTO Agreement.  
 Mark-ups on imported rice, wheat and barley are used for their management costs such as 
storage, buying and selling costs and so on.  
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 MAFF has no long-term contracts on the import and export of rice, wheat and barley. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
 
 Private marketing whose prices are freely deci ded is predominant in the Japanese rice market, 
and the government purchase from domestic market  is limited only to the minimum amount necessary 
for official stockpile under the Law for Stabiliza tion of Supply-Demand and Price of Staple Food. 
  Most of wheat and barley consumed in Japan are imported.  
4. Statistical Information  
 (See attached Tables I – III). 
 
5. Reason why no foreign trade has taken place  
 None. 
 6. Additional Information 
 None 
  G/STR/N/11/JPN 
 Page 9 
 
 
  V. MILK PRODUCTS 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 Agriculture and Livestock Industries Corpor ation (hereinafter referred to as “ALIC”) 
 
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Designated dairy products for general use (s kimmed milk powder, sk immed milk solids, 
whole milk powder and solids, condensed milk, bu tter milk powder and other solids, whey and 
modified whey, butter and butter oil), hereinafter re ferred to as “designated dairy products”.  As for 
the tariff item numbers of the specific products, see the notification on the administration of tariff 
quotas (G/AG/N/JPN/1).  
2. Reason and Purpose 
A. REASON OF PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 ALIC is authorized to take measures to stab ilize supply and demand situations of and prices 
for milk products, to promote sound development of  dairy and related industries and to improve 
national diet under the Manufacturing Milk Pr oducer Compensation Temporary Law and the 
Agriculture and Livestock Industries Corporation Law.   As a part of such measures, ALIC, as a state trading enterprise, imports designated dairy 
products to ensure proper and smoot h operation of the system to stabilize supply/demand and price of 
the designated milk products.  
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
 Article 13 of the Manufacturing Milk Producer Compensation Temporary Law.  
 Article 28 of the Agriculture and Li vestock Industries Corporation Law. 
 
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 ALIC deals with in-quota imports of designated dairy products established in 
Schedule XXXVIII-Japan in the WTO Agreement.  
 ALIC is not involved, in the marketing or distribution of over-quota imports of designated 
dairy products, except for the collection of a part of over-quota tariffs of such imports. 
 G/STR/N/11/JPN 
Page 10  
 
  B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
  
 ALIC collects mark-ups on imported desi gnated dairy products which are bound in 
Schedule XXXVIII-Japan in the WTO Agreement.  
C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR 
PARTICIPATION 
 
 Private traders can freely import designated dairy products subject to over-quota tariffs 
established in Schedule XXXVIII-Japan in the WTO Agreement. 
 
D. HOW IMPORT/EXPORT LEVELS ARE ES TABLISHED BY THE STATE TRADING 
ENTERPRISE 
 
 ALIC imports designated dair y products under the current access opportunities established in 
Schedule XXXVIII-Japan in the WTO Agreement.  
E. HOW EXPORT PRICES ARE DETERMINED 
  This item is not applicable for ALIC.  
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
  The resale prices are determined by a tender.   The prices, however, are not to be above the sum of the ALIC purchase prices and the mark-ups bound in Schedule XXXVIII-Japan in the WTO Agreement. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 ALIC has no long term contracts on th e import of designated dairy products. 
 
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  Total national demand for milk and milk pr oducts in FY 2004 was 123.55 million tons milk 
equivalent.   8.28 million tons of raw milk were produced  in FY 2004 of which 3.3 million tons were 
processed for milk products.  Annual production of  butter, skimmed milk powder and cheese in 
FY 2004 were 81 thousand tons, 183 thousand t ons and 119 thousand tons, respectively. 
  4.04 million tons milk equivalent of milk products were imported to meet the demand in 
FY 2004.  Annual imports of butter, skimmed m ilk powder and cheese in FY2004 were 8 thousand 
tons, 3 thousand tons (excludi ng skimmed milk powder for anim al feed) and 216 thousand tons, 
respectively.  
4. Statistical Information  
 (See attached Tables I – III). 
  G/STR/N/11/JPN 
 Page 11 
 
 
  5. Reason why no foreign trade has taken place  
 None. 
 
6. Additional Information 
 None. 
 
VI. RAW SILK 
1. Enumeration of State Trading Enterprises 
A. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
 Agriculture and Livestock Industries Corporation (ALIC)  
B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODU CT DESCRIPTION) 
 
 Raw silk (including doupion silk).  As for the tariff item number of the specific products, see the notification on the administration of tariff quotas (G/AG/N/JPN/1).  2. Reason and Purpose 
A. REASON OR PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
 ALIC as a state trading enterprise, is authorized to import raw silk as part of measures to 
coordinate raw silk import, for promoting stable  management of the industry concerning cocoon and 
raw silk and increasing raw silk demand, under the provisions of the Raw Silk Import Coordination 
Law.  
B. SUMMARY OF LEGAL BASIS FOR GRANTING THE RELEVANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR CONSTITUTIONAL POWERS 
 
 Legal provisions – Article 2 of th e Raw Silk Import Coordination Law. 
 
3. Description of the Functioning of the State Trading Enterprise 
A. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
 ALIC deals with in-quota imports of ra w silk established in Schedule XXXVIII-JAPAN in 
the WTO Agreement. 
 
 ALIC is not involved, in the marketing or distribution of over-quota imports of raw silk, 
except for the collection of a part of over-quota tariff of such imports.  
B. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE. 
 
 ALIC deals with in-quota imports of raw silk. G/STR/N/11/JPN 
Page 12  
 
  C. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION AND CONDITIONS FOR PARTICIPATION 
 
 Private traders can freely import raw silk s ubject to out-quota tariffs established in 
Schedule XXXVIII-JAPAN in the WTO Agreement.    
D. HOW IMPORT LEVELS ARE ESTABLISHE D BY THE STATE TRADING ENTERPRISE 
 
 ALIC imports raw silk under the current access opportunities established in Schedule XXXVIII-JAPAN in the WTO Agreement.  
E. HOW THE STATE TRADING ENTERPRISE DETER MINES ITS EXPORT PRICE – E.G., (I) IN 
RELATION TO PRICES IN OTHER MARKETS,  (II) THROUGH TENDERING.  INCLUDE 
INFORMATION ON THE USE OF REVENUE GENERATED 
 
 ALIC does not export raw silk. 
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED 
 
 Domestic sales prices for imported raw silk are determined on the basis of such factors as its 
import prices, management costs, domestic pri ces of raw silk and other economic conditions. 
 
G. WHETHER LONG-TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE.  WHETHER THE STATE TRADING ENTERPRISE IS USED TO FULFIL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 
 ALIC has no long term contracts on the import of raw silk.  
H. BRIEF DESCRIPTION OF MARKET STRUCTURE 
  Domestic raw silk demands are filled with  domestic production and imports of raw silk. 
  The declining demand for silk products causes decrease in both the domestic demand and the 
domestic production of raw silk every year. 
 
4. Statistical Information  
 (See attached Tables I-III). 
 5. Reason why no foreign trade has taken place 
 Over-quota imports of raw silk by private tr aders fill the gap between domestic demands and 
domestic production of raw silk.  
   G/STR/N/11/JPN
 Page 13TABLE I  
 
STATE TRADING:  JAPAN TOBACCO INC. 
 
Statistical Information, Imports  
 
Description of product 
(including HS numbers) Fiscal  year Total quantity 
imported  
(tons) Quantity imported 
by state trading 
enterprise 
(tons) Average import 
price  
(¥/kg.) Average 
representative 
domestic sales 
price (¥/kg.) Mark-up 
(¥/kg.) National 
production  
(tons) 
2003 89,219 89,219 646 - - 50,687 
2004 89,792 89,792 563 - - 52,674  Leaf tobacco 
HS No. 2401.10, 2401.20,    
             2401.30, 2403.91 
2005 35,535 35,535 384 - - 46,842  
 
 
Source :  Ministry of Finance "Japan's Trade Statistics" – JT Data. 
  
TABLE II  
 
STATE TRADING:  JAPAN TOBACCO INC. 
 
Statistical Information, Exports
 
 
Description of product 
(including HS numbers) Fiscal  year Total quantity 
exported 
(tons) Quantity exported 
by state trading 
enterprise 
(tons) Average 
procurement price  
(¥/kg.) Average 
representative 
domestic sales 
price (¥/kg.) Average export 
price 
(¥/kg.) National 
production  
(tons) 
2003 5,707 5,707 - - 145 50,687 
2004 5,760 5,760 - - 115 52,674  Leaf tobacco 
HS No. 2401.10, 2401.20,    
             2401.30, 2403.91 
2005 6,280 6,280 - - 129 46,842  
 
 Source
:  Ministry of Finance "Japan's Trade Statistics" – JT Data.  
  G/STR/N/11/JPN 
Page 14 TABLE III 
 
STATE TRADING:  JAPAN TOBACCO INC. 
 
Statistical Information, Domestic Activities  
  
Description of product 
(including HS numbers) Fiscal Year Domestic purchases by 
state trading enterprise 
(tons) National production 
(tons) Domestic sales by state 
trading enterprise 
(tons) National consumption 
(tons) 
2003 50,687 50,687 - 148,695 
2004 52,674 52,674 - 149,926 Leaf tobacco HS No. 2401.10, 2401.20,     
             2401.30, 2403.91 2005 46,842 46,842 - 119,373 
 
Source :  JT Data.  
   G/STR/N/11/JPN
 Page 15TABLE I  
 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
 
Statistical Information, Imports  
 
Description of product  Total quantity 
imported 
(kg.) Quantity imported 
by state trading 
enterprise 
(kg.) Average import 
price  
(US$/kg.) Average 
representative 
domestic price 
(¥/kg.) Mark-up 
 National 
production  
(kg.) 
100,000 
(J.F.Y. 2003) 100,000 
(J.F.Y. 2003) 72.5 202,500 - 3.0 
(J.F.Y. 2003) 
100,000 
(J.F.Y. 2004) 100,000 
(J.F.Y. 2004) 72.5 202,500 - 2.7 
(J.F.Y. 2002) Opium 
(HS 13.02.11) 
95,000 
(J.F.Y. 2005) 95,000 
(J.F.Y. 2005) 60.0 202,500 - 2.4 
(J.F.Y. 2003) 
The rate is about ¥109 to the US$.  Japan Fiscal Year (J.F.Y.) is from April to March.  (Opium includes 11 per cent of Morphine ). 
 
TABLE II  
 
THE GOVERNMENT OF JAPAN (THE MINISTRY OF HEALTH, LABOUR AND WELFARE) 
 
Statistical Information, Exports  
 
Description of product  Total quantity 
exported 
(kg.) Quantity exported 
by state trading 
enterprise 
 Average 
procurement price Average 
representative 
domestic sales 
price Average export 
price 
 National 
production  
 
0 
(J.F.Y. 2003) - - - - 3.0 
(J.F.Y. 2003) 
0 
(J.F.Y. 2004) - - - - 2.7 
(J.F.Y. 2004) Opium 
(HS 13.02.11) 
0 
(J.F.Y. 2005) - - - - 2.4 
(J.F.Y. 2005) 
Japan Fiscal Year (J.F.Y.) is from April to March.  
  G/STR/N/11/JPN 
Page 16 TABLE I 
STATE TRADING:  New Energy and Industrial Technology Development Organization (NEDO) 
STATISTICAL INFORMATION, IMPORTS 
 
Description 
of product(s) Year Total quantity 
imported 
(kl) Quantity imported by 
state trading enterprise
(kl) Average 
import price 
(US$/kl) Average representative
domestic sales price 
(Yen/kl) Mark-up National 
production 
(kl) 
2004 494,554 204,035 342 82,827 ($1=108.28yen) - 335,994 
2005 509,135 195,419 461 78,905 ($1=109.64yen) - 349,302 Ethyl alcohol 
(HS No, 2207.10)       
 
 
TABLE II 
STATE TRADING:  New Energy and Industrial Technology Development Organization (NEDO) 
STATISTICAL INFORMATION, EXPORTS 
 
Description 
of product(s) Year Total quantity 
exported 
(kl) Quantity exported by 
state trading enterprise
(kl) Average 
Procurement price Average representative
domestic sales price 
(Yen/kl) Average 
export price National 
production 
(kl) 
2004 178 0 - 82,827 ($1=108.28yen) - 335,994 
2005 22,620 0 - 78,905 ($1=109.64yen) - 349,302 Ethyl alcohol 
(HS No, 2207.10)       
 
 
TABLE III 
STATE TRADING:  New Energy and Industrial Technology Development Organization (NEDO) 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES 
 
Description 
of product(s) Year Domestic purchases 
by state trading enterprise 
(kl) National production 
 
(kl) Domestic sales 
by state trading enterprise 
(kl) National consumption 
 
(kl) 
2004 27,509 335,994 322,417 322,417 
2005 33,120 349,302 332,652 332,652 Ethyl alcohol 
(HS No, 2207.10)      
  
   G/STR/N/11/JPN
 Page 17TABLE I 
 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES   
                                                                                                                               
Statistical Information, Imports  
  
(Unit: 1,000 tons (Mark-up:  Yen/kg.)) 
Description of 
product(s) 
(including HS 
number(s)) Total quantity imported Quantity imported by 
state trading enterprise Average import price Average representative 
domestic sales price Mark-up National production 
1 2 3 4 5 6 7 
 
2003FY  
732  
2003FY  
732      
2003FY  
225  
2003FY  
7,792 
 
2004FY  
553  
2004FY  
552      
2004FY  
190  
2004FY  
8,730  
Rice 
 
2005FY  
n.a.  
2005FY  
n.a      
2005FY  
n.a.  
2005FY   
8,998 
 
2003FY  
5,667  
2003FY  
5,662      
2003FY  
21  
2003FY  
856 
 
2004FY  
5,636  
2004FY  
5,632      
2004FY  
19  
2004FY  
860  
Wheat 
 
2005FY  
n.a.  
2005FY  
n.a.      
2005FY  
n.a.  
2005FY  
875 
 
2003FY  
1,393  
2003FY  
1,392      
2003FY  
▲3  
2003FY  
198 
 
2004FY  
1,434  
2004FY  
1,433      
2004FY  
0  
2004FY  
199  
Barley 
 
2005FY  
n.a.  
2005FY  
n.a.      
2005FY  
n.a.  
2005FY  
183 
 
 Note
:   1.  As for the HS numbers, see attached. 
  2.   The figures of columns 2, 3, and 6 in 2005FY has not been decided.   3.   Data source:  Ministry of  Finance "Japan's Trade Statistics" 
   Ministry of Agriculture, Forestry and Fi sheries "Food Balance Sheet" and related data.   
  G/STR/N/11/JPN 
Page 18 TABLE II 
 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES 
                                                                                                                               
Statistical Information, Exports  
  
(Unit: 1,000 tons, Yen/ton) 
Description of 
product(s) 
(including HS 
number(s)) Total quantity exported Quantity exported by 
state trading enterprise Average procurement 
price Average representative 
domestic sales price Average export price National production 
1 2 3 4 5 6 7 
 
2003FY  
206  
2003FY  
206  
2003FY  
39,665  
2003FY  
232,822  
2003FY n.a.  
2003FY  
7,792 
 
2004FY  
188  
2004FY  
188  
2004FY  
46,141  
2004FY  
211,182  
2004FY n.a.  
2004FY  
8,730  
Rice 
 
2005FY  
n.a.  
2005FY  
n.a.  
2005FY  
n.a.  
2005FY  
n.a.  
2005FY n.a.  
2005FY   
8,998 
 
 Note
:   1.  As for the HS numbers, see attached. 
  2.   All the quantity exported was for food aid.   3.   The figures of columns 2, 3, 4,and 5 in 2005FY have not been decided.   4. Data source:  Ministry of Agriculture, Forest ry and Fisheries "Food Balance Sheet" and related data.  
   G/STR/N/11/JPN
 Page 19TABLE III  
 
STATE TRADING: THE MINISTRY OF AGRICULTURE, FORESTRY AND FISHERIES   
 
Statistical Information, Domestic Activities  
 
(Unit:  1,000 tons) 
Description of 
product(s) (including 
HS number(s)) Domestic purchases by state 
trading enterprise National production Domestic sales by state trading 
enterprise National consumption 
1 2 3 4 5 
Rice  
2003FY* 
 
2004FY* 
 
2005FY*   
19 
 
371 
 
395 
2003FY 
 
2004FY 
 
2005FY  
7,792 
 
8,730 
 
8,998 
2003FY 
 
2004FY 
 
2005FY  
1,355 
 
676 
 
n.a. 
2003FY 
 
2004FY 
 
2005FY  
9,389 
  
9,269 
  
9,222 
Wheat  
2003FY 
 
2004FY 
 
2005FY  
0 
 
0 
 
0 
2003FY 
 
2004FY 
 
2005FY  
856 
 
860 
 
875 
2003FY 
 
2004FY 
 
2005FY  
5,098 
 
5,038 
 
n.a. 
2003FY 
 
2004FY 
 
2005FY  
6,316 
 
6,266 
 
6,213 
Barley  
2003FY 
 
2004FY 
 
2005FY  
1 
 
0 
 
0 
2003FY 
 
2004FY 
 
2005FY  
198 
 
199 
 
183 
2003FY 
 
2004FY 
 
2005FY  
1,434 
 
1,489 
 
n.a. 
2003FY 
 
2004FY 
 
2005FY  
2,282 
 
2,335 
 
2,281 
 
Note: 1. As for the HS numbers, see attached.              2.          The figures of columns 4 in 2005FY have not been decided.  3. The figures of columns 2 of Rice are  the quantit y of rice MAFF purchased from the respective year’s crop. 
 4. Data source:  Ministry of Agriculture, Forest ry and Fisheries "Food Balance Sheet" and related data.  
  G/STR/N/11/JPN 
Page 20 1. Rice and its worked and/or prepared products  
 
1006.10.010 
1006.20.010 
1006.30.010 1006.40.010 1102.30.010 
1103.19.510 
1103.20.350 1104.19.250 1104.29.250 1901.20.122 1901.20.162 
1901.90.142 
1901.90.587 1904.10.211 1904.20.211 
1904.90.120 
2106.90.517 
 
2. Wheat, meslin, triticale and their processed products
 
 
1001.10.010 
1001.90.011 
1001.90.016 
1001.90.019 1008.90.021 1101.00.011 1101.00.091 
1102.90.210 
1103.11.010 1103.19.210 1103.20.110 1103.20.510 
1104.19.111 1104.19.121 
1104.29.111 
1104.29.121 
1108.11.010 1901.20.131 1901.20.151 1901.90.151 
1901.90.171 
1904.10.221 1904.20.221 1904.90.210 2106.90.214  
   G/STR/N/11/JPN
 Page 213. Barley and its processed products  
 
1003.00.011 
1003.00.019 
1102.90.110 1103.19.110 1103.20.410 
1104.19.410 
1104.29.410 1901.20.141 
1901.90.161 
1904.10.231 1904.20.231 1904.90.310 
2106.90.216 
  
  G/STR/N/11/JPN 
Page 22 TABLE I  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Imports  
 
(Unit:  Metric tons, Yen/Kg.) 
Description of products 
(including HS numbers) Total quantity 
imported Quantity imported 
by state trading 
enterprise Average import 
price Average 
representative 
domestic sales price Mark-ups National production 
1 2 3 4 5 6 7 
Skimmed milk powder 
and skimmed milk solids (0402.10, 0402.21)  3,368 ( 2003) 
 3,250 ( 2004)  3,025 ( 2005)  0 
 0  0  - 
 -  -  541 
 533  526 - 
- -  184,372 
 182,656  189,733 
Whole milk powder and other solids  (0402.21, 0402.29)       30 ( 2003) 
     36 ( 2004)      42 ( 2005) 0 
0 0 - 
- -  780 
 779  777 - 
- -  15,010 
 14,659  14,523 
Condensed milk (0402.99)      26 ( 2003) 
     20 ( 2004)      16 ( 2005) 0 
0 0 - 
- -  354 
351 
 347 - 
- -  33,106 
 35,253  32,276 
Buttermilk powder and other solids 
(0403.90)       0 ( 2003) 
     7 ( 2004) 
     6 ( 2005) 0 
0 
0 - 
- 
- -* 
-* 
-* - 
- 
- - * 
- * 
- * 
Whey and modified whey (0404.10)  13,581 ( 2003) 
 12,352 ( 2004) 
 12,686 ( 2005)  3,600 
 4,487 
 3,468  210 
 220 
 240 -* 
- * 
- * - 
- 
- - * 
- * 
- * 
Butter and butter oil (0405.10, 0405.20, 0405.90)  10,818 ( 2003) 
   8,192 ( 2004) 
  4,715 ( 2005) 10,453 
 7,764  4,422 205 
 262  306  960 
 952  948 - 
- -  81,566 
 80,555  85,468 
 
Remarks:  (*) No official data available.  
   G/STR/N/11/JPN
 Page 23TABLE II  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Exports  
 
(Unit:  Metric tons, Japanese Yen) 
Description of products 
(including HS numbers) Total quantity 
exported Quantity exported by 
state trading 
enterprise Average 
procurement price Average 
representative 
domestic sales price Average export 
price National 
production 
1 2 3 4 5 6 7 
Skimmed milk powder 
and skimmed milk solids  (0402.10, 0402.21)            9  ( 2003) 
          5  ( 2004) 
         17  ( 2005) 0 
0 0 - 
- -  541 
 533  526 - 
- -  184,372 
 182,656  189,733 
Whole milk powder and other solids (0402.21, 0402.29)           53 ( 2003) 
         119 ( 2004) 
         82 ( 2005) 0 
0 0 - 
- -  780 
 779  777 - 
- -  15,010 
 14,659  14,523 
Condensed milk (0402.99)          31 ( 2003) 
         77 ( 2004) 
        104 ( 2005) 0 
0 
0 - 
- 
-  354 
351 
 347 - 
- 
-  33,106 
 35,253 
 32,276 
Buttermilk powder and other solids 
(0403.90)         38 ( 2003) 
        64 ( 2004) 
        57 ( 2005) 0 
0 
0 - 
- 
- - * 
- * 
- * - 
- 
- - * 
- * 
- * 
Whey and modified whey (0404.10)          456 ( 2003) 
        1,351 ( 2004) 
      1,659  ( 2005) 0 
0 0 - 
- - - * 
- * - * - 
- - - * 
- * - * 
Butter and butter oil (0405.10, 0405.20, 0405.90)         225 (2003) 
        125 (2004) 
          4 (2005) 0 
0 0 - 
- -  960 
 952  948 - 
- -  81,566 
 80,555  85,468 
 Remarks:  (*) no official data available.  
  G/STR/N/11/JPN 
Page 24 TABLE III  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Domestic Activities  
 
(Unit:  Metric tons, Japanese Yen/Kg.) 
Description of products 
(including HS numbers) Domestic purchases by 
state trading enterprise National production Domestic sales by state 
trading enterprise National 
consumption 
1 2 3 4 5 
Skimmed milk powder and skimmed milk solids (0402.10, 0402.21) 0 ( 2003) 
0 ( 2004) 
0 ( 2005)  184,372 
 182,656 
 189,733 0 
0 
0  175,000 
 191,000 
- * 
Whole milk powder and other solids (0402.21, 0402.29) 0 ( 2003) 
0 ( 2004) 0 ( 2005)  15,010 
 14,659  14,523 0 
0 0  16,000 
 15,000 
- * 
Condensed milk  (0402.99) 0 ( 2003) 
0 ( 2004) 0 ( 2005)  33,106 
 35,253  32,276 0 
0 0  34,000 
 38,000 
- * 
Buttermilk powder and other solids  (0403.90) 0 ( 2003) 
0 ( 2004) 0 ( 2005) - * 
- * - * 0 
0 0 - * 
- * - * 
Whey and modified whey (0404.10) 0 ( 2003) 
0 ( 2004) 
0 ( 2005) - * 
- * 
- * 0 
0 
0 - * 
- * 
- * 
Butter and butter oil (0405.10, 0405.20, 0405.90) 0 ( 2003) 
0 ( 2004) 
0 ( 2005)  81,566 
 80,555 
 85,468 0 
0 
0  90,000 
 90,000 
- * 
 
Remarks:  (*) no official data available.  
   G/STR/N/11/JPN
 Page 25TABLE I  
 
STATE TRADING.  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Imports  
 
Description of 
product(s) Total quantity 
imported (Unit:  t) Quantity 
imported by 
state trading 
enterprise  
(Unit:  t) Average 
import price Average 
representative 
domestic sales 
price Mark-up 
(Unit:  yen/kg.) National 
production 
(Unit:  t) JFY 
1 2 3 4 5 6 7  
Raw silk 1,887  
1,357 1,473   0 
  0   0    
    278 
  250   126 2003 
2004 2005 
  
TABLE II  
 
STATE TRADING:  AGRICULTURE AND LIVESTOCK INDUSTRIES CORPORATION 
 
Statistical Information, Domestic Activities
 
 
Unit: t 
Description of 
product(s) Domestic purchases by 
state trading enterprise National production Domestic sales by state 
trading enterprise National consumption JFY 
1 2 3 4 5  
Raw silk   0 
  0 
  0   278 
  250 
  126   0 
  0 
  0 2,014 
1,775 
1,542      2003 
2004 
2005 
 
 
__________