FOREWORD
The security environment surrounding Japan and the world has become ever more severe.
North Korea, ignoring condemnations and sanctions by the international community, hasconducted nuclear tests and deployed ballistic missiles. China is unilaterally attempting tochange the status quo with its territorial assertion over the East China Sea and the South
China Sea. In the Middle East, the nuclear talks between Iran and the P5+1 nations may reach
final agreement, but Gulf countries are concerned about Teheran’s regional influence. In
addition, a militant group calling itself the Islamic State is casting a long shadow over theinternational peace-keeping efforts in the region.
Recognizing the above, the Government of Japan adopted in December 2013 the National
Security Strategy (NSS) and is now making efforts to drastically change the legal framework
related to national security. This has already led to a change in its export control policy. In
April 2014, the government set out the new Three Principles on Transfer of Defense
Equipment and Technology, with which it replaced the long-lasted Three Principles on Arms
Exports, and opened the way to allow arms exports under the new policy guideline.
At this time, it is my great pleasure to introduce the fourth edition of Overview of Japan’s
Export Controls, which is a guide to Japan’s export control system. This up-to-date edition
covers all the changes that have been made in Japan’s export control system since thepublication of the third edition in October 2012. In addition, in compiling this new book, we
reviewed the previous one and rewrote it completely with a new structure, making the fourth
edition more comprehensive and informative, yet maintaining its brevity.
The first edition was compiled in 2009 by members of CISTEC’s International Relations
Committee as a booklet for handing out to persons of foreign government authorities,
research institutions, industry associations, and private companies, whom they visit for
exchange annually. Again, I deeply appreciate the continued efforts made by all thecommittee members to update this little English book, especially by Tamotsu Aoi, an export
control specialist at the International Security Trade Control Department of Mitsui & Co., Ltd.,
who wrote this fourth edition.
Step by step, this has been improved and attracting a wider range of readers. It would be
more than a pleasure for me if this book helped people working overseas, as well as in Japan,
to deepen their understanding of Japan’s export control system.
June 2015
Tsutomu Oshida
Executive Managing Director, CISTEC

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TABLE OF CONTENTS
Foreword
I. Historical Background ················································································

1

II. Administrative Authority ··········································································

2

III. Legal Framework ····················································································

3

3-1. Legal Structure ····················································································

3

3-2. The Foreign Exchange and Foreign Trade Act ············································

3

3-2-1. Overview ······················································································

3

3-2-2. Key Articles ···················································································

4

3-3. Book of Export Control Law and Regulations ·············································

9

IV. Control System ······················································································· 10
4-1. Overview···························································································· 10
4-2. Transactions Subject to Control ······························································· 10
4-3. Control Types ······················································································ 10
4-4. List Control ························································································· 10
4-4-1. Control Lists ·················································································· 10
4-4-2. Export of Goods ············································································· 12
4-4-3. Transfer of Technologies ·································································· 12
4-5. Catch-All Control ················································································· 14
4-5-1. Background ··················································································· 14
4-5-2. WMD Catch-All Control··································································· 14
4-5-2-1. Overview················································································· 14
4-5-2-2. Informed Condition ··································································· 15
4-5-2-3. Objective Condition ··································································· 15
4-5-3. Military Catch-All Control ································································ 17
4-5-3-1. Overview················································································· 17
4-5-3-2. Military Catch-All Control on Countries Under UNSC
Arms Embargo ········································································· 17
4-5-3-3. Military Catch-All Control on Countries Not Under
UNSC Arms Embargo ································································ 17
4-5-3-4. Commodity Watch List ······························································· 18
4-6. Brokering Control················································································· 18
4-7. Transshipment Control ·········································································· 19
4-8. Special Controls for Countries of Concern ················································· 20

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V. Licensing System ····················································································· 21
V.5-1.
Licensing
System····················································································· 21
Overview····························································································
5-1. Licensing
Overview····························································································
5-2.
Policy ··················································································· 21
5-2.
Licensing
Policy···················································································
5-2-1.
Dual-use
Items··············································································· 21
5-2-1.
Dual-useItems
Items······························································································································································· 21
5-2-2. Military
5-2-2.
Military
Items································································································································································· 21
5-2-2-1.
Overview
5-2-2-1. The
Overview
5-2-2-2.
Three·················································································
Principles on Arms Exports ··········································· 21
5-2-2-2. The Three Principles on Transfer
Arms Exports··········································· 21
5-2-2-3.
of Defense
5-2-2-3. The
Three Principles
on Transfer
of Defense
Equipment
and Technology·························································
22
Equipment
and Technology ························································· 23
225-3. Export License·····················································································
5-3.
ExportLicense ·····················································································
5-3-1.
Individual
Export License ································································· 23
5-3-1.
Individual
ExportLicense ································································· 23
5-3-1-1.
Overview·················································································
5-3-1-1. End-Use
OverviewCertificate·················································································
5-3-1-2.
···································································· 23
24
5-3-1-2.
Certificate···································································· 24
5-3-2.
BulkEnd-Use
Export License·········································································
5-3-2.
BulkOverview
Export License········································································· 24
5-3-2-1.
·················································································
5-3-2-1. General
Overview·················································································
5-3-2-2.
Bulk
License ·································································· 24
25
5-3-2-2.
BulkLicense
License····································································································································· 25
5-3-2-3. GeneralSpecial Bulk
5-3-2-3. Exemptions
Special Bulk··············································································
License ··································································· 25
5-4. License26
5-4.
License5-4-1.
LowExemptions
value goods·························································································································································· 26
5-4-1. Re-export
Low valueof
goods············································································
5-4-2.
goods
imported for repair ··············································· 26
5-4-2. Technology
Re-export ofor
goods
imported
repair···············································
5-4-3.
softwarein theforpublicdomainor basic scientific research ···· 26
27
5-4-3.
softwarein the publicdomainor basicscientificresearch ···· 27
5-4-4. Technology ortransferin associationwithan exportof goods·····················
5-4-4. Technology intransferin association
with anofexportof goods····················· 27
5-4-5.
association
with an export
a program···························
5-4-5. A
Technology
association
with anofproducta program
5-4-6.
controlledin
item
incorporated
intoexport
an endas ··························· 27
5-4-6. aApart
controlled
item incorporated
into an end product asor a component······································································
27
a part or
a component ······································································ 28
27
VI. Enforcement···························································································
VI.6-1.
Enforcement···························································································
Inter-Agency
Cooperation ······································································ 28
6-1. Japan
Inter-Agency
Cooperation······································································ 28
6-2.
Customs·····················································································
6-2.
Japan CustomsInspection·····················································································
6-3. Post-shipment
by METI··························································· 28
6-3.
Inspection
by METI··························································· 28
6-4. Post-shipment
Penalties and Sanctions··········································································
6-4.
Penalties
and Sanctions·········································································· 28
6-4-1.
Overview······················································································
6-4-1.
······················································································ 28
6-4-2. Overview
Penalties ·······················································································
6-4-2. Administrative
Penalties ·······················································································
6-4-3.
Sanctions·································································· 28
29
6-4-3.
Administrative Sanctions·································································· 29
6-4-4. Warning························································································
6-4-4.
Warning························································································
6-5.
Violation
Cases ···················································································· 29
6-5.
Violation
Casesof····················································································
29
VII.
ExportControls
Private Companies ······················································· 33
VII.
Exportof Private
Companies······················································· 33
7-1.
Roles Controlsof IndividualCompanies·······························································
7-1. Exporters’
Roles of IndividualCompanies
7-2.
ComplianceStandard···························································································································· 33
7-2. Internal
Exporters’ComplianceStandard·····························································
7-3.
Compliance
Program(ICP)······················································ 33
34
7-3. Internal Compliance Program (ICP) ······················································

34

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7-4. Control Procedures ··············································································· 35
7-4-1. Classification ················································································· 35
7-4-2. Transaction Screening ······································································ 35
7-4-3. Shipment Control ··········································································· 36
VIII. Communication between METI, CISTEC and Exporters ······························ 37
8-1. Overview···························································································· 37
8-2. METI ································································································· 37
8-2-1. Information Service ········································································· 37
8-2-2. Consulting Service ·········································································· 37
8-2-3. Seminars ······················································································· 37
8-2-4. Audits and Inspections ···································································· 38
8-3. CISTEC ······························································································ 38
8-3-1. About CISTEC················································································ 38
8-3-2. Main Activities ··············································································· 38
8-3-3. Export Control Research Committee ··················································· 39
8-3-4. Certification Program ······································································ 40
8-3-5. CISTEC Model ··············································································· 40
IX. Challenges ····························································································· 41
9-1. Overview···························································································· 41
9-2. The Four-Point Reform Request······························································· 41
9-3. Internationalization of Classification Numbering System ······························ 42
9-4. Introduction of a Provision of Voluntary Self-Disclosure ······························ 43
9-5. Support for Small and Medium-sized Companies and Universities ················· 43
9-6. Introduction of a New Export Control Act and Regulations··························· 43
Appendix 1

Export Control Procedures in Brief ················································ 44

Appendix 2

Legal Structure ·········································································· 45

Appendix 3

The Controlled Items ·································································· 47

Appendix 4

Catch-all Control Flowchart························································ 54

Appendix 5

The Commodity Watch List for WMD Catch-All································ 55

Appendix 6

The Guideline for Judging “When Apparent ···································· 57

Appendix 7

Parameter Sheet ········································································· 59

Appendix 8

The Commodity Watch List for Military Catch-All ···························· 61

Appendix 9

Notice relating to the End-Use Certificate (EUC) ····························· 63

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I. Historical Background
Japan’s export control system was founded back in 1949 when the country was still underthe Allied Occupation. Stepping forward into the post-World War II recovery, the Japanese
government introduced that year the Foreign Exchange and Foreign Trade Control Act,
which was enacted to control foreign exchange and foreign trade transactions, and which isstill the basic law that governs export controls in Japan.
Three years later in 1952, Japan joined COCOM, the Coordination Committee for Multilateral
Export Controls, and started implementing export controls within the framework of themultilateral export control regime that was started in 1949 and ended in 1994 after the end of
the Cold War.
Much later in 1987, the basis of Japan’s present day export control system was established.
This development was in fact a consequence of the so-called Toshiba Machinery Incident,
which involved exports of state-of-the-art machine tools from Japan to the Soviet Union. The
disclosure of these exports created an international uproar, especially in Washington, D.C.,
that this transfer of technology, a violation of national as well as COCOM regulations,seriously undermined Western-bloc security.
In response to this incident, the government drastically enhanced controls by amending thebasic law. In order to make the system more effective, the authority not only increased thepenalties, but also ordered individual companies to establish an appropriate system ofcorporate export controls based on an internal compliance program (ICP). Shortly thereafterin 1989, the organization CISTEC was created as a driving force for the sound developmentof export controls in Japan.
Since then Japan’s export control system has been evolving in response to year-to-yearchanges in the political and security situations of Japan and the world. Catch-all control
related to weapons of mass destruction (WMD) was introduced in 2002, brokering andtransit controls were introduced in 2007 and technology transfer control was enhanced in2009. Further, in April 2014, the government realigned its arms export control policy and set
out the new Three Principles on Transfer of Defense Equipment and Technology, replacing
the Three Principles on Arms Exports which had lasted for almost 50 years.
Today, Japan, as a signatory to major non-proliferation treaties and a member to all theexisting international export control regimes, is implementing robust export controls
consistent with the international standards and norms. In addition, Japan not only commits
itself to international non-proliferation goals, but also promotes its outreach activities in Asia,
expanding cooperative networks in the region.
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II. Administrative Authority
In Japan, the Ministry of Economy, Trade and Industry (METI), originally formed in 1949, isthe competent authority that administers export controls. In METI, the Security Export
Control Policy Division, the Security Export Inspection Office, and the Security Export
Licensing Division are the units in charge. As shown below, they are situated under the
Trade Control Department of the Trade and Economic Bureau, and form a staff of about 80
officers in total.
(1) The Security Export Control Policy Division
The Security Export Control Policy Division is responsible for export control policy setting,legislation, and overall administration. It joins discussions in international export control
regimes and organizes international outreach activities.
(2) The Security Export Licensing Division
The Security Export Licensing Division is responsible for examining license applications andissuing licenses. It has some one hundred officers including those in regional offices.
(3) The Security Export Inspection Office
The Security Export Inspection Office is responsible for conducting company inspections. It
gives instructions and guidance to exporters and conducts domestic outreach activities.

The Ministry of Economy, Trade and Industry (METI)

Trade and Economic Cooperation Bureau
Trade Control Department

Security

ExportSecurity

Control

PolicyLicensing Division

Division

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ExportSecurity Export
Inspection Office2

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III. Legal Framework
3-1. Legal Structure
The legal structure of Japan’s export control system is extremely complicated. It is not a
simple set of law and regulations, but is a complex mix of primary legislation and secondary
legislation. Actually, the basic law is followed by a wide scope of subordinate regulations
issued from time to time in the form of cabinet orders, ministerial ordinances, notifications,notices and guidance, which are intertwined with each other. Of those, the principal ones are
as follows.
(1) The Foreign Exchange and Foreign Trade Act (1998) (basic law)
The Foreign Exchange and Foreign Trade Act (the Act), originally enacted in 1949, is thebasic law that provides the legal basis for export controls in Japan.
(2) The Export Trade Control Order (1949) (Cabinet order)
The Export Trade Control Order specifies the controlled goods pursuant to the provisions ofArticle 48-(1) of the Act.
(3) The Foreign Exchange Order (1980) (Cabinet order)
The Foreign Exchange Order specifies the controlled technology including software pursuant to
the provisions of Article 25-1-(1) of the Act.

As mentioned, the above are further followed by many orders, notices, etc., which form theregulations as a whole. Please refer to Appendix 2 for more details. This multilayer legal
structure, a tangled web, characterizes the Japanese system, making it extremely hard forexporters to understand the points.
3-2. The Foreign Exchange and Foreign Trade Act
3-2-1. Overview
In 1949, when Japan had just started its economic reconstruction after the war, the basic law
was introduced first as the Foreign Exchange and Foreign Trade Control Act to strictly
control foreign exchange and foreign trade transactions for the purpose of normalizing tradeactivities and maintaining Japan’s balance of payments. Half-century later in 1998, when
foreign exchange business was completely liberalized, it was amended and superseded by
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the current Foreign Exchange and Foreign Trade Act, in which the law’s control implication
was eliminated.
The Act is now the only law that states the basic framework and the principles of the control
on exports of both arms and dual-use items. Article 48-(1) stipulates that any person
intending to export specific goods must obtain a license from METI, and Article 25-1-(1) thatthose intending to transfer specific technology to a foreign person or to a foreign country
must obtain a license from the ministry.
As per its title, the Act is the principal economic law concerning foreign exchange andforeign trade, which covers such broad areas of cross-border transactions as foreign trade,
foreign payments, foreign capital transactions, and direct investments in Japan. Note in thisregard that the Act is administered by two ministries: the Ministry of Finance; and theMinistry of Economy, Trade and Industry. Basically, the former is responsible for foreignexchange matters, and the latter for foreign trade matters including export controls, whichjust account for a small portion of the Act.
3-2-2. Key Articles
Here, some key articles related to export controls have been selected from the Act andrestated in English. Note that the translation is not official and is for reference only.
Article 1 (Purpose)
The purpose of this Act is, on the basis of freedom of foreign exchange, foreign trade, andother foreign transactions, to enable proper expansion of foreign transactions and themaintenance of peace and security in Japan and in the international community through theminimum necessary control or coordination of foreign transactions, and thereby to ensure
equilibrium of the international balance of trade and stability of currency, as well as tocontribute to the sound development of the Japanese economy.
Article 48 (License for Exports)(1) Any person who intends to conduct an export of specific kinds of goods to specificregions set forth in Cabinet Order as considered obstructing the maintenance of international
peace and security, shall obtain, pursuant to the provision of the order, a license from the
Minister of Economy, Trade and Industry.
(2) The Minister of Economy, Trade and Industry, when he/she considers it necessary for theassured enforcement of the provisions of Article 48-(1), may impose, pursuant to Cabinet
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Order, the obligation to obtain a license on a person who intends to export specific kinds ofgoods to a region other than the specific regions set forth in the article.
(3) In addition to the cases prescribed in Articles 48-(1) and 48-(2), the Minister of Economy,
Trade and Industry may impose, pursuant to Cabinet Order, the obligation to obtain an
approval on a person who intends to export specific kinds of goods or to export goods to thespecific regions, or on a person who intends to export goods through a specific transaction,
to the extent necessary to maintain equilibrium of the international balance of trade, toachieve the sound development of foreign trade and the national economy, to sincerely fulfill
obligations under the treaties and other international agreements Japan has signed, tocontribute, in cooperation with other countries, to achieving international peace, or to
implement a cabinet decision as set forth in Article 10-(1).
Article 25 (Service Transaction)
Article 25-1
(1) Any resident or non-resident who intends to conduct a transaction to provide any
technology pertaining to the design, production, or use of specific goods set forth in Cabinet
Order as considered obstructing the maintenance of international peace and security (herein
after called "specific technology") in a specific foreign country (hereinafter "specific country"),or any resident who intends to conduct a transaction to provide specific technology to a
non-resident of a specific country, shall obtain, pursuant to the provisions of the order, alicense from the Minister of Economy, Trade and Industry.
(2) The Minister of Economy, Trade and Industry, when he/she considers it necessary for theassured enforcement of the provisions of Article 25-1-(1), may impose, pursuant to theprovisions of Cabinet Order, the obligation to obtain a license for a resident or non-resident
who intends to conduct a transaction to provide specific technology in a foreign country
other than specific countries, or for a resident who intends to conduct a transaction toprovide specific technology to a non-resident of a foreign country other than specificcountries.
(3) The Minister of Economy, Trade and Industry may impose, pursuant to the provisions ofCabinet Order, the obligation to obtain license for a person who intends to conduct either ofthe following transactions.
1) Either of the following transactions related to the provisions of Article 25-1-(1), when theminister considers it necessary for the assured enforcement of the provisions of the article:

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(a) Export, to a specific country, of documents, drawings, or other forms of media on
which information related to specific technology is written or recorded (hereinafter
called "specific recorded media").
(b) An electric or electronic transfer, from Japan to a specific country, of information
related to specific technology.
2) Either of the following transactions related to the provisions of Article 25-1-(2), when theminister considers it necessary for the assured enforcement of the provisions of the article:(a) Export of specific recorded media to a foreign country other than specific countries.
(b) An electric or electronic transfer, from Japan to a foreign country other than specificcountries, of information related to specific technology.
(4) Any resident who intends to enter into a contract, with a nonresident, for selling andbuying, leasing, or donating goods that will move between foreign countries shall obtain,
pursuant to the provisions of Cabinet Order, a license from the Minister of Economy, Tradeand Industry if such transaction is set forth in the order as considered obstructing themaintenance of international peace and security.
Article 25-2
(1) The Minister of Economy, Trade and Industry may impose a penalty on a person who
conducted a transaction subject to the provisions of Article 25-1-(1) without obtaining alicense as stipulated in the article that prohibits, for up to three years, conducting atransaction to provide any technology pertaining to the design, production, or use of goods(hereinafter called in this article "design technology") in a foreign country or to a
non-resident; exporting any documents, drawings, or other form of media on which
information related to design technology involved in the transaction was written or recorded(hereinafter "export of technology-recorded media"); transferring electrically or electronicallyfrom Japan to a foreign country any information related to design technology involved in thetransaction (hereinafter "foreign technology transfer"); or exporting specific kinds of goods
that involve specific technology.
(2) The Minister of Economy, Trade and Industry, in the case that the obligation of obtaining
license was imposed as stipulated in Article 25-1-(2) or 25-1-(3), may impose a penalty on a
person who conducted a transaction, or any related act, subject to the provisions of thosearticles without obtaining the license to prohibit, for up to twelve months, conducting atransaction to provide any design technology in a foreign country or to a non-resident,
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exporting technology-recorded media or a foreign technology transfer that was involved in
the transaction, or exporting specific kinds of goods that involve specific technology.
(3) The Minister of Economy, Trade and Industry may impose a penalty on a person who
conducted a transaction subject to the provisions of Article 25-1-(4) without obtaining alicense as stipulated in the article to prohibit, for up to three years, entering into a contract,with a non-resident, for selling and buying, leasing or donating goods that will move
between foreign countries, or exporting goods.
Article 53 (Sanctions)(1) The Minister of Economy, Trade and Industry may impose a penalty on a person who
conducted an export of goods that is subject to the provisions of Article 48-(1) withoutobtaining a license as stipulated in the article to prohibit, for up to three years, conducting anexport, or conducting a transaction to provide any specific technology in a foreign country or
to a non-resident, an export of technology-recorded media that was involved in thetransaction, or a transfer, electrically or electronically, from Japan to a foreign country, of any
information related to specific technology.
Article 55-10 (Exporters' compliance standard)(1) The Minister of Economy, Trade and Industry shall set in a ministerial ordinance a
standard that must be complied with by a person who is involved in exports of goods ortransfers of technology that are subject to the provisions of Article 48-(1) or 25-1-(1) when
he/she conducts such exports or transfers (hereinafter such person is simply called"exporter," such conduct "export or transfer," and such standard "exporters' compliancestandard").
(2) The exporters' compliance standard shall include provisions related to the requirement ofchecking if specific technology to be transferred in a transaction subject to the provisions ofArticle 25-1-(1) or specific kinds of goods to be exported to a specific region set forth in
Article 48-(1) meet the category of "specifically important goods or technology" (see the next
article) or not, as well as other provisions that must be complied with when conducting suchexport or transfer.
(3) The specifically important goods or technology mentioned in the preceding article means
specific technology, or specific kinds of goods stipulated in Article 48-(1), whose transfer in a
specific country or to a nonresident of a specific country, or whose export to a specific region
stipulated in the article, is set forth in Cabinet Order as considered obstructing themaintenance of international peace and security.
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(4) An exporter shall conduct an export or transfer in compliance with the exporters'
compliance standard.
Article 55-11 (Instruction and advice)
The Minister of Economy, Trade and Industry may give an instruction or advice to anexporter when he/she considers it necessary to have him/her conduct an export or transfer
properly, complying with the exporters' compliance standard.
Article 55-12 (Recommendation and order)(1) In such case that any instruction or advice stipulated in the preceding article was given to
an exporter, the Minister of Economy, Trade and Industry, when he/she considers his/hercompliance still insufficient, may further give a recommendation to the exporter to fullycomply with the exporters' compliance standard.
(2) The Minister of Economy, Trade and Industry, when the exporter still does not follow therecommendation, may give an order to him/her to take necessary measures to meet it.
Article 68 (On-site Inspection)(1) To the extent necessary for enforcing this Act, the competent minister may have anofficial of the ministry enter the business office, office, factory, or other facility of a person
who conducts foreign exchange business or other transactions or acts governed by this Act,to inspect books and documents and other objects or to question relevant persons.
(2) When the official enters such a facility pursuant to the provisions of the preceding
paragraph, he/she shall carry identification and present it to the relevant persons.
(3) The authority for on-site inspection or questions pursuant to the provisions of paragraph(1) shall not be construed as being granted for a criminal investigation.
Article 69-6 (Penalties)(1) Any person who meets either of the following conditions shall be subject to a penalty of
not more than seven years of imprisonment or a fine not more than seven million yen, or
both. If five times the value of the items involved exceeds seven million yen, however, thefine shall be up to five times the value of the items.

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1) Any person who conducted a transaction subject to the provisions of Article 25-1-(1) or
25-1-(4) without obtaining a license as stipulated in the article.
2) Any person who conducted an export of goods that is subject to the provisions of Article
48-(1) without obtaining a license as stipulated in the article.
(2) Any person who meets either of the following conditions shall be subject to a penalty not
more than ten years of imprisonment or a fine not more than ten million yen, or both. If fivetimes the value of the items involved exceeds ten million yen, however, the fine shall be up
to five times the value of the items.
1) Any person who conducted a transaction subject to the provisions of Article 25-1-(1)without obtaining a license as stipulated in the article, concerning specific technology thatis set forth in Cabinet Order as can be used for the development, manufacture, or use of
nuclear weapons, chemical or bacterial substance for military use, equipment used forspraying such substance, or rockets or unmanned air vehicles used for delivering them(hereinafter called in this article "nuclear weapons, etc."), or concerning the technology thatis set forth in the order as can be used for the development, manufacture, or use of goods
that are used especially for the development, manufacture, use or storage (herein after"development, etc.") of nuclear weapons, etc.
2) Any person who conducted a transaction subject to the provisions of Article 25-1-(4)without obtaining a license as stipulated in the article, or conducted an export subject tothe provisions of Article 48-(1) without obtaining a license as stipulated in the article,
concerning specific kinds of goods stipulated in Article 48-(1) but set forth in Cabinet
Order as those that are used specifically for nuclear weapons, etc. or for the development,
etc. of such weapons.
(3) Any attempted violation in respect of Article 69-6-(1), 2) and 69-6-(2), 2) (only in the caseof exporting goods) is subject to a penalty.
3-3. Book of Export Control Law and Regulations
All the relevant legislation is consolidated and compiled into a 1,000-page book titled, List of
the Goods and Technologies Subject to Security Trade Control, and Related Law and Regulations,which is published annually by the Japan Machinery Center for Trade and Investment (JMC).
This is a book Japanese people handling export controls must always keep within reach.

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IV. Control System
4-1. Overview
As stated in Article 1 of the Foreign Exchange and Foreign Trade Act, it is the policy of theGovernment of Japan to impose necessary as well as minimum controls on exporttransactions to contribute to the maintenance of national as well as international peace andsecurity while maintaining the principle of free trade. Accordingly, the government requires
a Japanese person to apply for a license when exporting specific goods to a foreign country
or transferring specific technologies to a foreign person or a foreign country.
4-2. Transactions Subject to Control
Under the Act, the following transactions are subject to control.
(1) Export of goods(2) Transfer of technologies(3) Transshipment of goods(4) Brokering transactions related to goods or technologies
4-3. Control Types
Japan enforces two types of control: list control; and catch-all control. The former is an itemor list-based control and the latter an end-use- or end-user-based control. List control
requires exporters to apply for a license when exporting or transferring controlled (listed)
items to a foreign country, while catch-all control requires the same when the items being
exported will be used for certain applications related to WMD or conventional arms. Note inthis regard that the catch-all scheme is also adopted in brokering control and transshipment
control. What is unique in Japanese catch-all control is that the government adopted aconcept of "objective" condition in which it objectified the so-called "know" condition.
4-4. List Control
4-4-1. Control Lists
List control is a control that is implemented by listing sensitive items (goods, technology, orsoftware) subject to control in certain lists as part of the regulations. In Japan, controlled
goods and controlled technologies, including software, are listed separately in Attachment
List No. 1 to the Export Trade Control Order and in the Attachment List to the Foreign
Exchange Order, respectively, and details of each item are specified in the Ministerial
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Ordinance Specifying Goods and Technologies Pursuant to the Provisions of Attachment List No.
1 to the Export Trade Control Order and the Attachment List to the Foreign Exchange Order.

Each control list contains 16 categories of items, and those under categories 1 through 15 arecontrolled items subject to list control, while others under category 16 are non-controlled
items but are subject to catch-all control. The controlled items on both lists are basically
identical to those specified by the international export control regimes (NSG, MTCR, AG,WA) and the Chemical Weapons Convention (CWC) (see the table below). Also, the items
are identified by classification numbers that are specific to Japan, not according to theEuropean numbering system which is used by the EU member nations as well as by someother countries.
The Controlled Items
JapaneseType ofClassification of the Items

International

Category Control
1

Regimes
Military

Arms

WA/ML

items
2

Nuclear items

NSG

Chemical weaponsAG

Biological weaponsAG

Missiles

MTCR

5Advanced materials

WA Cat. 1

6

Material processing

WA Cat. 2

3

List

3-2

Control

Dual-use

WMD-related

items

4

7

Conventional

Electronics

WA Cat. 3

8arms-related

Computers

WA Cat. 4

Communication/

WA Cat. 5

9Information security
10

Sensors and lasers

WA Cat. 6

11

Navigation/avionics

WA Cat. 7

12

MarineWA Cat. 8

13

Aerospace/propulsion WA Cat. 9

14

Other ML items

Except

for

WA/ML
15
16

Sensitive items

WA very sensitive

Catch-All Items other than those under Categories 1 - 15
Control

Note: More details are shown in Appendix 3.

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4-4-2. Export of Goods
An export of controlled goods on Attachment List No. 1 to the Export Trade Control Orderrequires a license issued by the Minister of Economy, Trade and Industry for all countries
and regions.
4-4-3. Transfer of Technologies
Covered by a separate article in the Act, technology transfer in Japan is controlled in aunique manner based principally on the “residency” of the person who transfers or receives
technology. Before April 2009, when the Act was amended, the rule was so simple that atransfer of controlled technology or software from a resident to a non-resident was subject tolicensing. In April 2009, however, the control was rearranged and enhanced to match thepresent age of globalized economy in which people move freely from country to country andtechnology from person to person electronically.
Especially important is that a concept of border-based control was introduced in thisenhancement. For a person, for example, bringing out controlled technologies with him/her
to a foreign country or sending out controlled technologies to a foreign country with just one
click now requires a license, if it is a transaction for “providing” such technologies (see theprovisions of Article 25-1 (1) of the Act).
The essence of the current technology transfer control is described as follows. (Hereinafter,
the term "technology" is used to mean technology as well as software)(1) Technology transfer from Japan to a foreign country
Any person, resident or non-resident, shall obtain a license when transferring controlled
technology on the Attachment List to the Foreign Exchange Order from Japan to a foreigncountry. A license is not required, however, when the technology is for the person's own use
in the foreign country.
(2) Technology transfer within JapanAny resident shall obtain a license when transferring controlled technology in Japan to a
non-resident.
(3) Technology transfer within a foreign country
Any resident shall obtain a license when transferring controlled technology in any foreign
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country. A license is not required, however, when the technology was sourced in a foreigncountry and the transaction is completed only in a foreign country. Note that, effective
August 1, 2012, a transfer of controlled technology from a resident to another resident in aforeign country requires no license if the recipient is the Japanese Ministry of Defense. The
definitions of "resident" and "non-resident" are describe in the table below.
Definition of Resident and Non-resident
Category
Japanese

Resident

Non-resident

1) A person residing in Japan

1) A person who left Japan for thenationals 2) A person working in Japan’s purpose of working in a foreign office
diplomatic establishment abroad

2) A person who left Japan for the
purpose of staying abroad for morethan two years
3) A person who has been staying
abroad for more than two years
4) A person subject to either of the three
categories described above, but who
has

been

temporarily

back

home,

staying in Japan for less than six
monthsForeign

1) A person working in an office in 1) A person residing in a foreign

nationals Japancountry

2) A person who has been staying in 2) A person who is an official of aJapan for more than six months

foreign government or an international
institution3) A diplomat, consul, or a person
accompanying or serving the diplomat
or consul

Legal1) Japanese corporations registered in 1)

personsJapan

Foreigncorporations

registeredabroad2) Foreign corporations’ subsidiaries 2) Japanese corporations’ subsidiaries
and other offices registered in Japanand other offices registered abroad

3) Japan’s diplomatic establishments 3) Foreign governments’ diplomatic
abroadestablishmentsorinternationalorganizations in Japan
Note: UN and US military personnel are regarded as non-residents.

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4-5. Catch-All Control
4-5-1. Background
In Japan, catch-all control was first introduced in 1996 as the so-called Complementary
Control, in which 87 specific items were specified as those subject to the control. In that sense,
this control was somewhat like an extension of the list control described earlier, or could becalled catch-some control. After that the present style WMD catch-all control was introduced
in 2002 to replace the Complementary Control. Then in 2008, the government expanded it
further by introducing military catch-all control.
4-5-2. WMD Catch-All Control
4-5-2-1. Overview
WMD catch-all control requires exporters to obtain a license when METI orders them to do
so in respect to a specific transaction (“informed” condition), or when exporters are awarethat the item will be used for the development, manufacture, use, or storage of WMD, inother words, if the transaction falls under certain conditions provided objectively by thegovernment (“objective” condition).
Note in this regard that in Japan, weapons of mass destruction, or WMD, are defined as
nuclear weapons, chemical or bacterial substance for military use, equipment used forspraying such substance, or rockets or unmanned air vehicles used for delivering them.
The scope of items subject to the control is broad. Unlike list control, any goods andtechnologies, including non-controlled items, are subject to WMD catch-all control, except
for specific non-sensitive items such as food and timbers.
All countries and regions are subject to WMD catch-all control except for the following 27
countries: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, South Korea,
Luxemburg, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden,
Switzerland, the U.K., and the U.S.A.
As written earlier, two conditions are set forth to invoke this WMD catch-all control:“informed” condition and “objective” condition. The objective condition generally
corresponds to the “know” condition adopted by the Western countries. The point is thatinstead of providing the definition of “know,” which is usually subjective, the Japanese
government objectified the awareness condition so that exporters can easily judge if the14

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items in question will be used for the WMD applications stated above.
4-5-2-2. Informed Condition
Exporters have to obtain a license if it is requested (or informed) by METI to do so in respect
to a specific export transaction. The “inform” is given when METI considers that there exists
a considerable risk that the item in question will be used for the development, manufacture,use, or storage of WMD.
4-5-2-3. Objective Condition
Objective condition consists of “end-use” condition and “end-user” condition, which aredescribed separately as follows.
4-5-2-3-1. End-use Condition
Exporters have to obtain a license if they are aware, through written information on such
documents as contracts or corporate brochures, or through notification from the importer or
any other parties, that the item will be used for the development, manufacture, use or
storage of WMD.
Furthermore, a license is also required if an exporter knows, through written information onsuch documents as contracts or corporate brochures, or through notification from theimporter or any other parties, that the item will be used for any of the specific activities listed
below.
(1) Development of nuclear fuel or nuclear source material(2) Research on nuclear fusion (except for research on astronomy and a nuclear fusion
reactor)(3) Development of nuclear reactors (except for a light-water reactor for power generation) or
parts and attachments therefor(4) Manufacture of heavy water(5) Processing of nuclear fuel(6) Reprocessing of nuclear fuel(7) Activities stipulated below but are carried out by military or military-related entities(a) Development or manufacture of chemical substances(b) Development of microorganisms or toxins(c) Development of rockets or unmanned air vehicles(d) Research on aerospace

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4-5-2-3-2. End-user Condition
Exporters have to obtain a license if they are aware, through written information on such
documents as contracts or corporate brochures, or through notification from the importer or
any other parties, that the end-user has been engaging, or used to engage, in thedevelopment, manufacture, use or storage of WMD.
Furthermore, exporters are also required to submit a license application when they wish toexport goods to entities on the End-User List unless it is apparent that those will not be used
for WMD purposes. The End-User List is a list provided by METI that can be compared to
the U.S. Entity List. It lists foreign entities that are considered to be involved in development,
production, manufacturing or storage of WMD. As of 15 April 2015, the list contained a totalof 527 entities in eleven countries and regions: Iran (295 entities), North Korea (121), Pakistan(33), China (43), Syria (15), India (4), UAE (6), Afghanistan (3), Taiwan (3), Israel (2), andHong Kong (2). Note, however, that the End-User List is neither an embargo list, nor a black
list. Nor does it automatically prohibit exporting goods to listed entities. This list is reviewed
and revised annually.
The End-User List is available at the following site:
http://www.meti.go.jp/policy/anpo/end-userlist.html
4-5-2-3-3. Guideline for Judging “When Apparent”
This guideline is provided by METI to help exporters make proper judgment if an item to beexported will be used apparently for a purpose other than the WMD-related activities
stipulated in the catch-all regulations. See Appendix 6 for more details. While Red Flag
Indicators provided by the U.S. Bureau of Industry and Security (BIS) are used as a check list
to detect possible violations, this guideline is used as a list to check if a transaction can becleared of the catch-all conditions related to WMD end-use.
4-5-2-3-4. Commodity Watch List
The Commodity Watch List, first published in 2003, is a list of specific dual-use goods withhigh risks of diversion for the development, manufacture, use or storage of WMD. It contains
40 such items, plus 12 additional ones which apply specifically to exports to Syria. Exporters
are required to check and verify the end-use and end-user carefully when exporting any ofsuch items or related technologies so that the export will not contribute to the development,
manufacture, use or storage of WMD. See Appendix 5 for the items on the list which are
related to WMD applications.

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In addition, when exporting any items on the Commodity Watch List to any organization
listed on the End-User List, a license is required should the attached WMD symbols (N, B, C,or M) agree to each other. A license is required, for example, when exporting a
missile-related item on the Commodity Watch List to a listed entity of missile concern.
4-5-2-3-5. Reporting Obligation
Even if an export transaction does not legally require a catch-all license, an exporter isrequired to report it to METI if he/she has happened to know for any reasons after the
shipment that the items involved are or will be used for any WMD applications.
4-5-3. Military Catch-All Control
4-5-3-1. Overview
The two cabinet orders related to export controls were amended on August 27, 2008 to
introduce control on non-controlled items for military end-use, which was effected on thefirst day of November of the same year. Since then Japan has been implementing catch-all
control related to both WMD and conventional weapons.
4-5-3-2. Military Catch-All Control on Countries Under UNSC Arms Embargo
With regard to the exports destined for countries under UN Security Council arms embargo,
all non-controlled items (except for food, timbers, etc.) are subject to licensing if:(1) exporters are informed by METI that the items in question are or may be intended for a
military use, or(2) exporters have come to know, through written information on such documents as
contracts or corporate brochures, or through notification from the importer or any otherparties, that the items will be used for the development, manufacture, or use of conventional
weapons.
As of April 2015, the countries and regions under UNSC Arms Embargo are: Afghanistan,
Central Africa, Democratic Republic of Congo, Cote d’Ivoire, Eritrea, Iraq, Lebanon, Liberia,
Libya, North Korea, Somalia, and Sudan.
4-5-3-3. Military Catch-All Control on Countries Not Under UNSC Arms Embargo
With regard to the exports destined for countries not under the arms embargo, all non-listed
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items (except for food, timbers, etc.) are subject to licensing if the exporter is informed by
METI that the items in question are or may be intended for a military use.
This control is not applied, however, to exports destined for the following 27 countries:
Argentina, Australia, Austria, Belgium, Bulgaria, Canada, the Czech Republic, Denmark,Finland, France, Germany, Greece, Hungary, Ireland, Italy, Republic of Korea, Luxemburg,
the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, theU.K., or the U.S.A.
4-5-3-4. Commodity Watch List
In relation to military catch-all control, METI has also published Commodity Watch List
which covers 34 goods as described in Appendix 8. Similarly, exporters are required to checkand verify the end-use and end-user carefully when exporting any of such goods or related
technologies so that the export will not contribute to the development, manufacture or use of
conventional weapons.
4-6. Brokering Control
In June 2007, METI enforced regulations to control WMD-related brokering andtransshipment services. Those regulations were introduced to meet the requirements of the
UN Security Council Resolution 1540 adopted in April 2004. The brokering control was
further enhanced in April 2009.
The term “brokering” is defined as an overseas transaction in which any goods or technology
move from one foreign country to another, and in which a person, including a legal person,
in Japan is engaged directly or through its overseas office. The control scheme is as follows.
(1) Brokering of arms or arms-related technology
Brokering of arms or arms-related technology under category 1 of the control lists requires alicense.
(2) Brokering of goods other than arms or of technology related to the goods
A person in Japan must obtain a license when it enters into a contract, directly or through its
overseas subsidiary, for selling and buying, leasing or donating goods or technology, withforeign companies if;(a) The person has been so informed by METI, or
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(b) The person has come to know, through written information on such documents as
contracts or corporate brochures, or through notification from the importer or any
other parties, that the items will be used for the development, manufacture, use or
storage of WMD.
This regulation of clause (2), however, does not apply to the transaction of moving goods ortechnology to or from Argentina, Australia, Austria, Belgium, Bulgaria, Canada, the Czech
Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, South Korea,
Luxemburg, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden,
Switzerland, the U.K., or the U.S.A.
4-7. Transshipment Control
Transshipment control is applied to foreign goods passing through Japan. The term“transshipment” is defined as an act to transship foreign goods at airports or seaports inJapan.
(1) Transshipment of arms
Transshipment of arms under category 1 of the control list requires a license.
(2) Transshipment of goods other than arms
A person in Japan must obtain a license when transshipping goods if;(a) The person has been so informed by METI, or(b) The person has come to know, through written information on such documents as
contracts or corporate brochures, or through notification from the importer or any
other parties, that the items will be used for the development, manufacture, use or
storage of WMD.
Transshipment control does not apply, however, to the transaction whose destination isArgentina, Australia, Austria, Belgium, Bulgaria, Canada, the Czech Republic, Denmark,Finland, France, Germany, Greece, Hungary, Ireland, Italy, South Korea, Luxemburg, theNetherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, the U.K.,
or the U.S.A.

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4-8. Special Controls for Countries of Concern(1) Iran
METI exercises special controls on Iran complying with the series of UN Security Council
Resolutions adopted in the past. It is now prohibited to export to the country weapons andnuclear- and missile-related items listed by NSG and MTCR. Also, exports of items listed by
AG and WA are subject to stringent controls.
(2) North Korea
As for North Korea, no items can now be exported to the country. The government imposed
this export ban in 2009 as an extraordinary measure limiting its implementation period. So
far, the government has been renewing it whenever it expired. As of this writing in April
2015, the government has decided to extend the export ban until April 13, 2017.

(3) Russia
In response to the Ukraine crisis that broke out in 2014, the Japanese government decided in
September that year to prohibit exports to Russia of weapons, as well as other controlled
items if they would be used for any military applications.

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V. Licensing System
5-1. Overview
In Japan, an export license is issued only by the Minister of Economy, Trade and Industry.
When necessary, exporters must submit license applications to the Security Export Licensing
Division of the Trade Control Department, or to its regional office, where licensing officers
examine the applications focusing on the end-use and the end-user.
5-2. Licensing Policy
5-2-1. Dual-use Items
A license will be issued if METI has determined that the items involved will not materiallycontribute to the design, development, or production of WMD or conventional weapons, norbe circumvented or re-exported to countries or entities of concern. In practice, METI
examines each application based on the following criteria.
(1) The item will undoubtedly be delivered to the end-user.
(2) The item will undoubtedly be used by the end-user.
(3) The transfer will not obstruct the maintenance of international peace and security.
(4) The item will be controlled in an appropriate manner by the end-user.
5-2-2. Military Items
5-2-2-1. Overview
Japan as a peace-loving nation has traditionally been taking a very tough stance against
exports of arms or anything of military significance. Such a stance first resulted in the
introduction in 1967 of the guideline called the Three Principles on Arms Exports which
prohibited arms exports with limited exceptions. This policy of arms export prohibition
lasted until 2014, when the government set out a new guideline called the Three Principles
on Transfer of Defense Equipment and Technology.
5-2-2-2. The Three Principles on Arms Exports
The policy guideline of the Three Principles on Arms Exports is a resolution declared in 1967
by Sato Administration. With that resolution, the government prohibited arms exports to thecountries categorized as follows.

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(1) Communist bloc countries,(2) Countries subject to arms embargo under UN Security Council Resolutions, and(3) Countries involved in or likely to be involved in international conflicts.
Note that this policy was reinforced in 1976 by Miki Administration by expanding the export
prohibition to all countries, after which exports of arms and arms-related items from Japan
were, in principle, totally prohibited.
5-2-2-3. The Three Principles on Transfer of Defense Equipment and Technology
In 2014, the said policy of arms export prohibition was reviewed and realigned. This wasdone along with the Abe Administration’s efforts to reestablish its security policy frameworkso that Japan can take more responsibility for the peace and stability in the world.
Recognizing that the security environment was causing increasingly serious concern, theJapanese government in December 2013 established the National Security Council (NSC) andadopted the National Security Strategy (NSS), Japan’s first-ever action of this kind after thewar. In the NSS, the government presented policy guidelines related to Japan’s national
security, describing the assessment of global and regional security environment, challenges,
and the strategic approach Japan should take as a “Proactive Contributor to Peace,” which isbased on the principle of international cooperation. Then in April 2014, the government set
out in accordance with the NSS the Three Principles on Transfer of Defense Equipment andTechnology, with which the old principles described above ceased to exist.
As a result, arms export controls are now implemented based on the following principles.
Exports of arms are not denied blindly but may be permitted, subject to strict and careful
examination by the authorities, including the NSC when necessary, under the new policy
guideline.
Principle 1
An overseas transfer of defense equipment and technology will not be permitted when:(1) It violates obligations under treaties and other international agreements that Japan has
concluded.
(2) It violates obligations under UNSC resolutions.
(3) It is to a country involved in an armed conflict.

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Principle 2
An overseas transfer of defense equipment and technology may be permitted when:(1) It helps promote Japan’s peace building and international cooperation.
(2) It serves Japan’s national security by:(a) implementing international joint development and production projects with its allies
and partners,(b) enhancing defense and security cooperation with its allies and partners,(c) supporting the Self-Defense Forces’ overseas activities, or(d) assuring the safety of Japanese nationals overseas.
Principle 3(1) In principle, a license is granted only when the government of the recipient country canassure proper controls to prevent unauthorized use and third-country re-transfer.
(2) In this regard, the recipient country is required to obtain the prior consent of the Japanese
government if it intends to do the above.
5-3. Export License
Exporters may obtain either an individual export license or a bulk export license, dependingon the sensitivity and security concerns of the items and the destinations.
5-3-1. Individual Export License
5-3-1-1. Overview
When exporting controlled items, exporters are required to obtain an individual export
license unless the export is eligible for a bulk export license. An individual export license isalways required when the export is subject to licensing under catch-all control. This is atransaction-based license and is valid for six months after the date of issue. It will in principle
become invalid if the licensee failed to export the items within the six-month period, though
the exporter can submit an application to extend the validity before it expires.
An exporter is required to submit the following documents when applying for this license.
(1) An application form in which details of exporters, products, the end-user, shipping routeand others are stated.
(2) Related documents such as written contracts, purchase orders, plant layout drawings, etc.
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(3) Other documents as may be required by METI such as product catalogues, the end-user's
leaflets, the end-user's End-Use Certificate, and so on.
5-3-1-2. End-Use Certificate
One of the most important conditions to obtain an individual export license is to make surethat the items will not be illicitly re-exported or re-sold. METI in this regard may ask theexporter to submit an End-Use Certificate (EUC) obtained from the end-user as aprecondition of granting the license for certain sensitive items such as high-end machine
tools.
For this purpose, the authority provides a prescribed EUC form on which the end-user isrequired to fill in necessary information. In this regard, METI also provides a statement titled,“Notice relating to the End-Use Certificate,” in which what METI requires of the end-user inregard to the assurance process is clearly mentioned (see Appendix 9).
5-3-2. Bulk Export License
5-3-2-1. Overview
A bulk export license simplifies the licensing procedures by allowing licensees to makemultiple exports of controlled items under certain conditions related to classification,
destinations, end-use, and so on. Effective on July 1, 2012, the bulk licensing system wasrationalized and rearranged into the five license types, as shown in the following table.
The Bulk Export Licenses
Category
General bulk license
Special bulk license

No

Name of the licenses

1

General Bulk Export License

2

Special General Bulk Export License

3

Special Bulk Export License

4Special Bulk Export License for Repair or Replacement

5

Special Bulk Export License for Overseas Subsidiaries

The concept of a general bulk license is to allow much more simplified licensing proceduresfor exports to 27 specific countries that are implementing robust controls as members of theinternational export control regimes, while special bulk licenses allow the same for exporters
who are implementing rigorous controls meeting specific conditions set out by METI.
A bulk export license may not be used, however, for exports to or via Iran, Iraq, North Korea,
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and the countries subject to UN arms embargoes. Moreover, any bulk export license granted
to an exporter may be revoked if he/she has committed any violation, or if METI considers it
necessary in view of maintaining international peace and security.
5-3-2-2. General Bulk License(1) General Bulk Export License
With this license, exporters can make multiple exports of controlled but less sensitive items
to the following 27 countries: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, theCzech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, South
Korea, Luxemburg, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain,
Sweden, Switzerland, the U.K., and the U.S.A.
The license is valid for three years from the date of issue, but can be extended for anotherthree years when applied for. The validity is nullified for a specific export transaction,
however, if the exporter knows that the items involved will be used for the development,
manufacture, use, or storage of WMD, in which case the exporter must apply for anindividual export license.
Note that an exporter must apply for this license only electronically through a network
system provided for by the government. But having established an ICP is not a must for
obtaining this license.
5-3-2-3. Special Bulk License(1) Special General Bulk Export License
The concept of this license is basically the same as the general bulk export license describedin the preceding paragraph, but is eligible not only to the said 27 countries, but to all
destinations except for the countries of concern listed in the last paragraph of Article 5-3-2-1.
(2) Special Bulk Export LicenseThis license allows exporters to make exports of specific items repeatedly to a specificcustomer with whom the exporter has maintained a continued trading partnership (thiscondition does not apply, however, if it is for an infrastructure plant project). The validity isthree years from the date of issue, but can be extended for another three years when appliedfor. A person exporting under this license must report export records to METI once a year.

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(3) Special Bulk Export License for Repair or Replacement
This license is issued to allow re-exports of category 1 items (arms and arms-related items)
for a return to the country of origin for repair or replacement. The eligible destinations arelimited to specific countries. The validity is three years from the date of issue, but can beextended for another three years when applied for. A person exporting under this licensemust submit export records to METI every three months.
(4) Special Bulk Export License for Overseas Subsidiaries
This license allows a company to make repeated exports of specific items to its overseas
subsidiary of which the company has the majority share. The validity is three years from thedate of issue, but can be extended for another three years when applied for. A person
exporting under this license must report export records to METI once a year.
(5) Special conditions
When obtaining any of the above special bulk licenses, exporters are required:(a) to establish an appropriate internal control system based on an ICP, which must be
submitted to METI, and implement the controls in strict compliance with the ICP,(b) to report once a year their compliance status by answering the questions asked by
METI in an export control compliance check list, and(c) to receive an on-site inspection by METI.
5-4. License Exemptions
In certain limited cases, an export of controlled goods or a transfer of controlled technology
is exempt from license requirements, if it meets required conditions. The following are someof the license exemptions currently available.
5-4-1. Low value goods
A license is not required for an export of controlled goods if the value is equal to or less than
one million yen, or 50,000 yen, depending on the sensitiveness of the item and thedestination. However, this exemption may not be used for exports subject to licensing under
WMD catch-all control, military catch-all control, brokering control and transshipment
control, nor for exports to Iran, Iraq and North Korea.

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5-4-2. Re-export of goods imported for repair
A license is not required for a re-export of controlled goods after repair, provided that they
were originally exported from and returned to Japan for that purpose, and provided that theimport and further re-export transactions are not conducted on a selling and buying basis.
This exemption may not be used, however, for exports to North Korea.
5-4-3. Technology or software in the public domain or basic scientific research
No license is required for a transfer of technology if it is in the public domain, or if it isrelated to a basic scientific research. Technologies in the public domain are those:(1) already disclosed to the general public via leaflets, books, magazines, newspapers, etc.,(2) provided in the form of academic journals, public patent information or open
symposium’s minutes that are accessible to the general public,(3) accessible or audible to the general public through factory tours, lecture presentations,exhibitions, etc.,(4) provided as programs of which the source code is already disclosed, and(5) provided for public access, such as manuscripts for conferences, documents delivered at
exhibitions, articles printed in magazines, and so on.
5-4-4. Technology transfer in association with an export of goods
A transfer of controlled technology in association with an export of controlled goods does
not require a license if the technology is transferred to the buyer, consignee or end-user ofthe goods and is within the scope minimum required for installation, operation, maintenanceor repair of the goods. This exemption may not be used, however, for the transfer ofsoftware.
5-4-5. Technology in association with an export of a program
A transfer of controlled technology in association with an export of a controlled program
does not require a license if the technology is for the use of the program and is a minimum
requirement for its installation or repair.
5-4-6. A controlled item incorporated into an end product as a part or a component
A controlled item incorporated into an end product as a part or a component is exempt fromlicense requirements, if it is not a principal element making up no more than 10 per cent invalue, or if it cannot be removed.
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VI. Enforcement
6-1. Inter-Agency Cooperation
Strict enforcement through inter-agency cooperation is necessary for export controls. METI
in this regard maintains close and cooperative relationships with Japan Customs and otheragencies, such as the Ministry of Foreign Affairs, the National Police Agency and the Japan
Coast Guard.
6-2. Japan Customs
Japan Customs, a part of the Ministry of Finance, is in charge of border control and checks
the legitimacy of imports and exports of goods. When customs notices any suspicious export
related to catch-all control, for example, they report the fact to METI, who then examine theexport and determines if a license is required or not. When needed, METI instructs theexporter to apply for an export license. See Appendix 1, Export Procedures in Brief.
6-3. Post-shipment Inspection by METI
METI conducts post-shipment inspections to check if export shipments have been lawfully
conducted. Such an inspection is carried out by requesting exporters to submit reports onexport shipments, and by conducting an on-the-spot inspections.
6-4. Penalties and Sanctions
6-4-1. Overview
Violators are subject to penalties or sanctions, which may vary depending on the case. Whenthe violation is not so serious, only an administrative disposition may be imposed on theviolator. The penalties were greatly increased in April 2009.
6-4-2. Penalties(1) If a person conducted an export or brokerage of controlled goods or technologies related
to WMD without a license:
The person shall be imprisoned for not more than ten years or shall pay a fine not more thanten million yen, or both. If five times the value of the items involved exceeds ten million yen,
however, the fine shall be up to five times the value of the items.

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(2) If a person conducted an export or brokerage of controlled goods or technology related toconventional arms without a license:
The person shall be imprisoned for not more than seven years or shall pay a fine not morethan seven million yen, or both. If five times the value of the items involved exceeds sevenmillion yen, however, the fine shall be up to five times the value of the items.
(3) If a person made a transfer without a license of controlled technology in other form oftransaction that is subject to license:
The person shall be imprisoned for not more than five years or shall pay a fine not more than
five million yen, or both. If five times the value of the items involved exceeds five million yen,
however, the fine shall be up to five times the value of the items.
(4) If a person failed to subscribe to an admonition issued by the Minister of Economy, Tradeand Industry in regard to his/her incompliance with the Exporters’ Compliance Standard(see Article 7-2):
The person shall be imprisoned for not more than six months or shall pay a fine not morethan 500,000 yen.
In addition to the above, lighter penalties are specified for other types of violations. Also, an
attempted violation, or a violation occurring before the actual export, is also subject topenalties.
6-4-3. Administrative Sanctions
Willful violators are subject to administrative sanctions, under which they are prohibited to
conduct exports for not more than three years. Please refer to the violation cases described in
Article 6-5.
6-4-4. Warning
Instead of imposing penalties and sanctions, METI may issue a warning to violators if theauthority considers it appropriate. The warning is publicly announced.
6-5. Violation Cases
Case A (Toshiba Machinery Case)

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The so-called Toshiba Machinery Incident disclosed by the U.S. in 1987 is a symbolic casethat triggered drastic changes in Japan’s export controls. From 1982 to 1984, the Toshiba
Machinery Corporation, a subsidiary of a well-known electronics giant, exported to theSoviet Union nine-axis computer controlled milling machines, applying for a license
describing them falsely as less sophisticated products. It was illegal and a COCOM violation
as well because in those days exports of such high-performance machines to the communist
bloc countries were prohibited by the multilateral agreement. These high-tech machine tools
were delivered and installed at the country’s Baltic Naval Shipyard with software packages
developed and supplied by a Norwegian company.
This incident created an international uproar because the sophisticated machine tools
enabled the Soviets to produce much quieter propellers, making their submarines muchharder to detect in deep water, according to the U.S. Department of Defense, and culminatedin the resignation of both president and chairman of the parent company, as well as in theimposition of severe penalties on the subsidiary.
Case BIn August 2006, four top executives of a company, including the president, were arrested on
suspicion that in October and November 2001 they willfully exported without a license twounits of three-dimensional high-precision measuring equipment it manufactured to acompany called SCOPE in Malaysia through its affiliated company in the country.
High-precision measuring equipment can be used for nuclear development and requires alicense for export. Reportedly, the company SCOPE had a connection with Dr. A.Q. Kahn’s
global nuclear network. In fact, one of the two units had been re-shipped to Libya, which
was discovered at the end of 2003 through the inspection carried out by the IAEA. It was also
reported that they had made an illegal export of the equipment to Iran through a front
company in Tokyo.
Worse, it was discovered that the company had developed special software that enabled the
products to electronically mask the measurement data, thus the highly accurate measuring
instrument ostensibly became less accurate. The company had been exporting such products
to various other countries without a license.
In the end, the four executives were sentenced to 2 to 3 years’ imprisonments withsuspensions of 4 to 5 years, and the company itself was fined 45 million yen. In addition,
METI imposed an administrative sanction against the manufacturer, prohibiting exports ofall products for an initial 6 months, and prohibiting exports of the measuring equipment inquestion for 2 years and 6 months after that.
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Case CIn January 2006, a joint team of police and Japan Customs raided the headquarters of amanufacturing company on suspicion that they had attempted to export unmanned
helicopters to China without a license.
This raid was driven by a criminal complaint against the company by METI, who had
conducted on-site inspections of the organization. The unmanned helicopter they were about
to export was equipped with a computer control system, which allegedly enabled it to fly on
its own. This type of air vehicle is controlled under category 4, missiles (MTCR items), of thecontrol list since it can be used for military applications such as spraying chemical or
biological agents.
After the investigation, the company was prosecuted and fined one million yen by summary
trial. In addition, METI prohibited it from exporting unmanned helicopters for 9 months.
Case D
In August 2006, a former president of a Tokyo-based trading company was arrested for a
non-licensed export of a freeze dryer to North Korea via Taiwan, which was made in
September 2002. The police discovered the fact after questioning waste recycling agents in
March 2005 for allegedly trying to export bicycles to North Korea.
During the interrogation, the former president admitted that he had known the fact that thefreeze dryer could be used in a military-linked research institution in North Korea. This typeof equipment, which is used mainly for food processing, is subject to catch-all control since it
can be used also for developing biological weapons.
After the police investigation, the man was prosecuted and fined one million yen bysummary trial. In addition, METI prohibited the company from exporting any products for 8
months.
Case EAt the end of July 2008, police stormed the headquarters of a machine tool manufacturer in
Hiroshima, western Japan, on suspicion that in 2004 it exported a few units of highly
accurate machining center to South Korea without a license. The machine tool can be used
for manufacturing equipment that is used for nuclear-related development, and requires alicense for export. Newspapers reported that the company had allegedly exported the31

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products repeatedly to other countries including European ones, the U.S., and China withouta license, misleading Japan Customs.
Case FIn September 2008, a Tokyo-based company doing agency business for exports and imports
attempted to export self-recording magnetic flux meters to Myanmar without a license, butfailed because the Minister of Economy, Trade and Industry, under catch-all control,
requested the company to apply for a license. Then in January of the next year, the company,
conspiring with another company that manufactured the products and with a third company
doing North Korean business, tried to export the same products to Myanmar, again withouta license, but this time in the manufacturer’s name declaring Malaysia as the destination
country. The products in question were seized before shipment. In June of the same year, thepresidents of the three companies were arrested upon METI’s criminal complaint. Three
years later in February 2012, the company was fined 3 million yen, and its president wassentenced to 12 months in prison (suspended for three years). Further, in June, METI
imposed an administrative sanction on the company to prohibit exports for two months. The
self-recording magnetic flux meters can be used for missile or nuclear development.

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VII. Export Controls of Private Companies
7-1. Roles of Individual Companies
From the perspective of exporters, the export control system as a whole can be described as athree-layer structure, in which the roles played by individual companies are significant, as
the companies are burdened deeply with a duty of compliance through day-to-day business
operations.

International Level

National Level

Company Level

Export Control Laws

Internal Compliance(1) International Treaties
and Conventions(2) International Export

and Regulations

Control Regimes

Program (ICP)(3) UN Security Council
Resolutions

In Japan, ever since 1987 when the government drastically strengthened export controls,
most exporters, under the government’s instructions and guidance, have been strenuously
implementing export controls establishing an ICP-based system in which a corporate
executive representing the company is designated as the person ultimately responsible forthe export controls in the organization.
7-2. Exporters’ Compliance Standard
In April 2009, in order to reinforce the Japanese system further, METI introduced a new legal
framework called Exporters' Compliance Standard, which came into effect on April 1, 2010.
In this framework, every single person—an individual, a company, or a university—that is
engaged in exports of goods or transfers of technology is obliged to establish an internal
control system of certain sort. In particular, any person handling controlled items must
establish a compliance system that includes at least the following elements.
(1) Ultimate responsibility for export controls is assigned to a person who represents theorganization,(2) A proper export control organization,(3) Proper product classification procedures,(4) Proper transaction screening procedures,
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(5) Proper shipping control procedures,(6) Proper procedures for auditing and conduct audits accordingly,(7) Proper export control training for all members concerned in the organization,(8) Export control documents are kept properly for an appropriate period, and(9) All violations are reported to the Minister of Economy, Trade and Industry without delay,
and remedial measures are taken.
7-3. Internal Compliance Program (ICP)
The legal framework of the Exporters' Compliance Standard described above was in fact
introduced to urge companies handling sensitive goods and technologies to establish an ICP.
In this regard, METI also introduced a system of ICP registration. Under this system, acompany who so wishes submits its ICP to METI, who then checks and registers it if it isconsidered satisfying the guideline the authority set. Further, METI publishes on its website
the name of the companies who have registered an ICP and have accepted the publication. In
2013, about 1,500 ICPs were registered, and some 600 company names were published as ofApril 2015.
Exporters are required to include the following key elements in their ICPs.
(1) Organization(a) Corporate export control organization(b) Role and responsibility of each unit
(2) Control procedures(a) Item classification(b) Transaction screening(c) Shipment control(3) Operation and maintenance(a) Internal audit(b) Training and education(c) Documents control(d) Instruction and guidance to subsidiaries(e) Incident reports and prevention of recurrence
Further, METI issues each year a compliance check list to the companies who have their ICPs
registered with the authority. Answering some 40 questions raised in the list, each company
can self-check its export control compliance status. Note that registration of their ICPs andsubmission to METI of this check list with their answers filled in are one of the conditions for
obtaining a special bulk license.

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7-4. Control Procedures
7-4-1. Classification
According to METI, the majority of violations in recent years are related to classification,
namely, misclassification and even non-classification. As a result, the authority is placing
much weight on this procedure; it even requires exporters to designate in their organizations
a person responsible specifically for this procedure.
Accordingly, Japanese exporters are always trying to do it correctly referring to the control
lists and adopting a two-step procedure in which the classification first conducted by anengineer is checked and verified by another person with sufficient knowledge of theregulations. Usually, classification is conducted using a special form called “Parameter
Sheet” or Komoku-betsu Taihi Hyo (classification check sheet). See Appendix 7 for details.
Probably, Japan is a country where exporters are conducting item classification mostrigorously. This is true in a sense that Japanese exporters are conducting it all by themselvesin the situation that no official service for this procedure is available, while the authorities ofsome advanced countries are providing such a service officially, employing necessary
engineers. (Note, however, that the situation in Japan is being improved as mentioned in
Article 9-5)
7-4-2. Transaction Screening
For each export transaction, exporters conduct a screening with a system designed for theirunique business operations. As the initial step, a sales person concerned checks for eachenquiry the product classification, the end-use, the end-user, the destination country and soforth, then subjects it to further screening, if necessary, according to the criteria set forthinternally. Again, a double-check system is required for transaction screening. For thisprocess, METI draws exporters' attention to the following points.
(1) Transaction screening shall be conducted using the prescribed screening form, orpreprinted transaction screening sheet.
(2) The responsibilities of the person who approves the transaction screening, as well as ofthe person who conducts the screening, shall be defined clearly.
(3) A person who is responsible for making the company’s final judgment on orderacceptance shall be designated.
(4) Any domestic transaction shall be treated as an export if it is known in advance that the
products involved will be exported in the end through the customer or other related parties.

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7-4-3. Shipment Control
Shipment control is the last resort of a company’s export control. It is therefore required forexporters to establish an appropriate system of shipment control. When making each
shipment, the exporter must check if the shipping items are identical with those designatedon the shipping documents, or on the license if those are controlled. No items should be
shipped out unless the required screening has been completed.

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VIII. Communication between METI, CISTEC and Exporters
8-1. Overview
For promoting export control awareness among exporters, METI provides multiple channels
that enable it, considering that keeping close communication with export control
communities is essential. What is outstanding in this regard is the existence of CISTEC, anorganization that functions as a linkage between the authority, industries and academia.
8-2. METI
8-2-1. Information Service
Through its website, METI provides for the public a wide variety of information such as
regulatory documents, a brief explanation about the regulations, guidance, Q & A, and soforth, which are vital for exporters.
METI can be accessed at the following URLs.
(1) Japanese version:

http://www.meti.go.jp/policy/anpo/index.html(2) English version:

http://www.meti.go.jp/policy/anpo/englishpage.html

8-2-2. Consulting Service
Exporters can visit METI for face-to-face consultation on various matters related to specifictransactions and others.
8-2-3. Seminars
In coordination and cooperation with CISTEC, METI holds various seminars so that as many
people can learn export control as possible. Two types of seminars are available for Japanese
exporters: one that is held periodically for awareness promotion and the other held whennecessary due, for example, to major regulatory amendments METI has made.
In addition, METI holds various other seminars inside and outside of Japan as part of its
outreach activities. The most important one is the Asian Export Control Seminar which isheld annually in Tokyo in cooperation with CISTEC. The 22nd such seminar was held in
February 2015 and attended by about 160 persons from 24 countries and regions.

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8-2-4. Audits and Inspections
METI’s Security Export Inspection Office conducts audits or on-site inspections oncompanies, small and large, who are engaged in export business. Its audit teams visit
companies, mainly special bulk license holders, with one or two weeks’ notice and carry out
one-day audits. METI conducts this for over 100 companies each year and deepen its
communication with exporters.
8-3. CISTEC
8-3-1. About CISTECCISTEC, the Center for Information on Security Trade Control, was founded in April 1989,
shortly after Japan’s export controls were drastically strengthened, as a non-profit andnon-government organization. It is a joint creation of the government and industries; its
operation is maintained by 40 staff members and is supported financially and operationallyby more than 400 associate members, including major exporting companies and research
institutes (as of April 2015).
As mentioned, CISTEC’s mission is to function as a linkage between the authority, industry
and academia and help them create an efficient and effective system of export controls inJapan, and thereby contribute to the promotion of the peace and security of the world. Inorder to achieve the goal, CISTEC plays the roles to:(1) Collect experts’ knowledge and wisdom and apply it for the betterment of the Japanesesystem,(2) Support Japanese companies and others for their establishment of appropriate internal
export control systems,(3) Develop advanced online systems for the provision of necessary information forexporters, and(4) Promote international cooperation mainly with Asian countries to increase export control
awareness and harmonization.
CISTEC can be accessed at the following URLs.
(1) Japanese version:

http://www.cistec.or.jp/(2) English version:

http://www.cistec.or.jp/english/index.html

8-3-2. Main Activities
The main activities of CISTEC are as described below.
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(1) Research and analysis, and proposal to METI(a) To collect basic information about sensitive goods and technologies and carry out
related research and analysis.
(b) To carry out research and analysis on legal systems-Japan and abroad.
(c) To study methods and tools for realizing efficient and effective export controls.
(d) To gather industry opinions through various committees related to the above andcompile them into a proposal to METI.
(2) Company support(a) To provide face-to-face consultation services related to various issues.
(b) To assist companies in their establishment of an ICP.
(c) To provide export control tools such as parameter sheets, guidance books and so on.
(d) To maintain export control certification programs.
(3) Information provision(a) To provide an online database service related to various parties of concern.
(b) To publish the CISTEC Journal, which is a bimonthly magazine specialized in export
controls.
(4) International cooperation(a) To hold the Asian Export Control Seminar in Tokyo(b) To send experts abroad to various international seminars and forums.
8-3-3. Export Control Research Committee
What characterizes CISTEC most is its committee activities. Under the heading of the Export
Control Research Committee, CISTEC has two research boards: the Policy, Rules andProcedures Board; and the Goods and Materials Board. These boards have various
subcommittees established for specific research themes as mentioned below. Through these
activities, CISTEC gathers industry opinions and consolidates them into public comments
and proposals to the government.
It should be noted in this regard that members of each committee are all from privatecompanies and that CISTEC’s activities are, in fact, sustained by those active members fromcompanies.
(1) Policy, Rules and Procedures Board(a) Export Control Policy Committee(b) Export Control Systems Committee(c) International Research and Relations Committee
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(2) Goods and Materials Board(a) Committee on Dual-use Equipment for WMD(b) Advanced Materials Committee(c) Material Processing Committee(d) Electronics Committee(e) Information Technologies Committee(f) Sensors, Lasers, Navigations and Avionics Committee
8-3-4. Certification Program
Another important activity of CISTEC is its certification program. CISTEC maintains a
program to grant certificates to people who have been qualified for having certain levels ofknowledge about export controls. The levels of the qualification are set in three categories:
STC Associate, STC Advanced and STC Expert. Encouraging people to challenge theexaminations, CISTEC aims to promote their professional skills and motivate them to play aleading role as an expert in each company. Also, CISTEC expects that companies consider it
as a merit of their job performance.
This program was started more than ten years ago in June 2004 with the examination for STC
Associate. As of March 2015, the total numbers of persons who have challenged theexaminations are 32,649 for STC Associate, 449 for STC Advanced and 4,390 for STC Expert.
Of those, 22,913 persons have been qualified for STC Associate, 248 for STC Advanced and584 for STC Expert. Note that the numbers related to STC Advanced are small because theprogram of this category was started just in 2015.
8-3-5. CISTEC Model
Thanks to its long-lasting activities as mentioned above, the name “CISTEC” isinternationally recognized as a distinguished organization dedicated to export controls.
Rooted deeply in Japan, it now receives a growing number of contacts from foreignauthorities and institutions, who are asking it to explain its roles and functions, to mutually
discuss specific subjects, and even to send its members for presentations. Its uniqueexistence—partly as the authority, partly as an industry association, and partly as a law
firm—has been drawing overseas attention as an interesting model, or rather “CISTEC
Model” or “Japan Model” as called now in international export control communities. In thismodel, CISTEC stands in a well-balanced position between the authority and exporters, andfunctions as a kind of go-between, bringing multiple benefits to both sides. Even corporate
members themselves write regulatory guidance of various countries of the world including
Japan like this one, which is also part of the CISTEC Model.

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IX. Challenges
9-1. Overview
It was more than 60 years ago when Japan’s export control system was founded. With thepassage of time, the system itself has become dilapidated and ineffective. The biggest issue isthat the legal system has worn out and now become a rag rug, or a labyrinthine maze of thelaw, cabinet orders, ministerial ordinances, notices, and notifications, on which the authority
has added amendments upon amendments over the decades. And this creates a lot of
problems which exporters, or even the authority, are facing with. Therefore, over the last few
years, Japanese industries, through CISTEC, as well as through other organizations, havebeen strongly requesting METI to reform the Japanese system.
9-2. The Four-Point Reform Request
In October 2010, the Export Control Policy Committee of CISTEC representing Japaneseindustries submitted a letter to METI titled, “Request for a Comprehensive Review of Japan's
Security Export Control Legal System.” In the letter, the committee made a four-point reform
request, saying that Japanese exporters were still over-burdened by the complicated,
hard-to-understand control system and were left behind in the highly competitive global
market. Actually, the committee requested METI to:(1) Make the legal system easier to understand and easier to comply with by:(a) introducing a new Export Control Act to replace the current Foreign Exchange andForeign Trade Act,(b) laying down the basic control requirements in the Act in a clear manner,(c) streamlining and rationalizing the complicated, multi-layer legal structure, and(d) simplifying other hard-to-understand regulations.
(2) Secure a level-playing field for international competition by:(a) providing a system under which regime-based amendments of the control lists canbe done speedily (this requires a shift of the legal delegation from the present cabinet
order to ministerial ordinance or lower level statutes),(b) rearranging the current control lists so that each item can be identified also with theEuropean numbering system,(c) continuing the research on foreign availability so that the controlled items can bereviewed effectively, and(d) harmonizing export control provisions with those set forth by the international
export control regimes.

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(3) Ease restrictions according to the destination countries' security status and to theexporters' compliance status by:(a) streamlining export control procedures in line with the international trends,(b) simplifying the procedures related to the exports to allied countries,(c) reviewing the system of the special bulk export license for overseas subsidiaries, and(d) introducing a system of preferential treatment for exporters of excellent compliancerecords.
(4) Reduce procedural burdens on exporters by:(a) ensuring consistency in legal interpretations by the authority and providing venues
for mutual discussions between METI and exporters,(b) reducing the time for examining license applications,(c) reducing the burden of laborious product classification procedures,(d) introducing an effective electronic license application system,(e) reducing the documents required for a license application,(f) introducing other types of preferential treatment,(g) rationalizing overall control implementations, and(h) improving and expanding administrative services.
In response to the above, METI has been taking necessary steps, and the situation has been
improving step by step. But major challenges still remain as follows.
9-3. Internationalization of Classification Numbering System
One big challenge METI is currently taking up is internationalization of Japan’s classification
numbering system. As already mentioned, the controlled items in Japan are identified by theclassification numbers that are specific to Japan, not in accordance with the EU numberingsystem which is accepted widely in the world. This has been an obstacle for Japanesecompanies to expand their operations globally.
At the time of this writing in April 2015, METI, together with CISTEC, is working hard to
rearrange the Japanese classification numbers based on the EU system. The expected meritsof this action are as follows.
(1) For each controlled item, it will become easier to conduct one-on-one classificationcomparison between the Japanese list and the EU list.
(2) Japanese exporters can easily share products’ classification information with overseas
companies on the same basis of understanding.

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(3) It will become easier to check the differences of the control lists between Japan and othercountries and also between Japan and the international export control regimes.
(4) Classification of imported goods will become easier.
9-4. Introduction of a Provision of Voluntary Self-Disclosure
Industries expect that METI will introduce a provision of voluntary self-disclosure in whicha penalty for a violation self-disclosed by the violator can be mitigated with certain
conditions. In fact, the authority is already implementing it in part as a trial.
9-5. Support for Small and Medium-sized Companies and Universities
The Japanese economy is sustained by a large number of small and medium-sizedcompanies covering a broad area, including foreign trade. However, those companies inmost cases do not have legal or export control departments, and their knowledge base in thisfield is very narrow though what is actually required is not small. And this is also true of
universities, which play key roles in scientific and technological research and development.
Therefore, it is an important challenge for CISTEC to support such companies anduniversities for awareness promotion and capacity building. In fact, CISTEC is alreadyproviding them with such services as information provision, item classification, audit
assistance and seminars, but it considers them still not sufficient and intends to expand its
services to fulfill their specific needs.
9-6. Introduction of a New Export Control Act and Regulations
As indicated at the beginning, the biggest challenge for METI, or the ultimate goal ofJapanese industries, is to establish, as a single set, a new export control act and regulations,breaking away from the current system built under the Foreign Exchange and Foreign Trade
Act. With the new act and regulations, the control system shall be streamlined completely sothat clarity and predictability of the controls are fully ensured.
The road ahead to the goal seems long and difficult, but the authority is indeed expected totake up this challenge as soon as possible.

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Appendix 1

Export Control Procedures in Brief
Catch-All Control

List Control
The items to be exported are either on

The exporter is “informed” by METI, or

Attachment List No. 1 to the Export Trade“knows” that the end-use or end-user ofControlthethe items to be exported is related to the

Attachment List to the Foreign Exchange

development, manufacture, use, or storage

Order (technology or software)of WMD, or conventional weapons.

Order(goods),oron

Apply for an export license to the Minister of METI

Review by METI

Exportcontrol

Approval by METI

Export license issued by METI

Customs

Goods

Technology or software

Submit an Export Declaration, together
with the license and others, to Customs

Check and inspection by Customs

Export Permit issued by Customs

Export of the goods

Transfer of technology or software

44

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Appendix 2

Legal Structure(The main part of the Japanese export control law and regulations)

(1)

Law

(2)

Cabinet(3)(8)(4), (5), (6), (7)Order(9), (10), (11), (12), (13)(14)(15), (16)(17), (18)

Ministerial
Ordinance
Notification

NoticeLaw(1)Foreign Exchange and Foreign Trade Act
Cabinet Orders(2)

Export Trade Control Order(3)

Foreign Exchange Order
Ministerial Ordinances(4)

Ministerial Ordinance stipulating export control regulations(5)

Ministerial Ordinance stipulating the cases where temporarily unloaded goods
must be considered WMD-related(6)

Ministerial Ordinance stipulating the cases where goods to be exported must be
considered WMD-related(7)

Ministerial Ordinance stipulating the cases where goods to be exported must be
considered conventional weapons-related(8)

Ministerial Ordinance stipulating goods, technologies and software pursuant toprovisions of Attachment List No. 1 to the Export Trade Control Order and the
Attachment List to the Foreign Exchange Order(9)

Ministerial Ordinance on external trade other than export of goods(10)

Ministerial Ordinance stipulating the cases where a technology transfer must be
considered WMD-related(11)

Ministerial Ordinance stipulating the cases where a technology transfer must be
considered conventional weapons-related

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(12)Ministerial Ordinance stipulating the cases where goods subject to brokering must
be considered WMD-related(13)

Ministerial Ordinance stipulating the cases where technologies subject tobrokering must be considered WMD-related(14)

Notification on the implementation of the Export Trade Control Order
Notifications(15)

Notification on licensed technology transfer conducted in conformity with theprovisions of Article 25-1 of the Foreign Exchange and Foreign Trade Act andArticle 17-2 of the Foreign Exchange Order(16)

Notification on licensed brokering service of goods conducted in conformity withthe provisions of Article 25-4 of the Foreign Exchange and Foreign Trade Act
Notices(17)

Notice on required documents and others related to the submission of license
applications for the exports of goods, transfers of technology and exports ofspecific recorded media(18)

Notice on export procedures concerning catch-all control related WMD andconventional weapons

Note that English translations of Japanese laws and orders, including the Act and two
cabinetordersareavailable

atthe“Japanese

Law

Translation”

website(http://www.japaneselawtranslation.go.jp/?re=02) which is operated by the Ministry ofJustice.

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Appendix 3

The Controlled Items(Attachment List No. 1 to the Export Trade Control Order)
Category 1. Arms

(1)

Firearms, ammunitions(10)

Anti-submarine and torpedo nets

(2)

Explosives, explosive dispensers(11)

Armor plates, military helmets, bodyarmors(3)

Propellants, military fuels(4)

Stabilizers

forexplosives

and

(12)

Military search lights(13)

Military bacterial agents, chemical

propellants

warfareagents,radioactive

materials, etc.
(5)

Directed energy weapons(13-2)

Chemicalmixtures

for

of

above

decontamination

thematerials(6)

Kinetic

energyweaponsand(14)

Biopolymers for chemical agents, etc.

(15)

Equipment and devices for the

projectiles(7)

Military vehicles, bridges, etc.

production and testing of militarypropellants(8)

Military vessels, etc.

(16)

Equipment for the production andtesting of weapons(9)

Military aircraft, etc.

(17)

Military satellites

Category 2. Nuclear weapons(1)

Nuclear fuel and nuclear source(27)

materials
(2)

cells

for

fluorineproduction

Nuclearreactors,

generating(28)

equipment(3)

Electrolytic

Deuterium

Equipment for the production of gas
centrifuge rotors

anddeuterium(29)

Centrifugal balancing machines

compounds(4)

Artificial graphite(30)

Filament winding machines(5)

Equipment for the separation of(31)

Gas laser oscillators, etc.

(32)

Mass spectrometers or ion sources(33)

Pressure gauges or bellows valves(34)

Superconducting

nuclearfuelandnuclearfuelmaterials(6)

Equipment for the separation oflithium isotopes, etc.

(7)

Equipment for the separation of
uranium (or plutonium) isotopes(8)Frequency chargers

solenoidelectromagnets

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(9)Nickel powders(35)

Vacuum pumps(10)

Equipment for the production of(35-2)

Scroll-type compressors and vacuum

deuterium or deuterium compounds(10-2)

pumps

Equipment for the production of(36)

Direct current power units(37)

Electron accelerators or flash X-ray

uranium, plutonium (compounds),
etc.
(11)

Flow forming machines

generators(12)1) Numerically controlled machine(38)

Impact testing machines(39)

Mechanicaltools2) Measuring equipment(13)

Induction furnaces, arc furnaces,
plasma melting furnaces

(14)

or

electronic

streakInterferometers,pressuregauges,camerasIsostatic presses(40)

pressure transducers(15)

Robots(41)

Goods for the detonation or testingof nuclear weapons(16)

Vibration test equipment(17)

Structural

materials

for

gas

(42)

Photomultiplier tubes(43)

Neutron generators

centrifuge rotors(18)

Beryllium(44)

Remote manipulators(19)

Substances used as alpha sources for(45)

Radiation

the detonation of nuclear weapons(20)

shieldingwindows,

framesBoron-10(46)

Radiation hardened TV cameras,
lenses(21)

Substances used as reducing or(47)

Tritium, alloys and compounds(48)

Equipment

oxidizing gents for the production of
nuclear fuel materials(22)

Crucibles made with materials whicharecorrosion

resistantagainstfortheproduction,collection, or preservation of tritium

actinide(23)

Hafnium,

hafniumalloysand(49)

compounds(24)

Lithium,

Platinized catalysts for the collectionof tritium

lithiumalloysand(50)

Helium-3(51)

Rhenium,compounds(25)

Tungsten, alloys and compounds

alloysandalloysofrhenium and tungsten(26)

Zirconium alloys and compounds

(52)

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Category 3. Chemical weapons(1)

Substances for raw materials of CW
agents,or

substances(2)havingEquipment for the production of CW
agentsequivalent toxic ability with CW
agents or raw materials
Category 3-2. Biological weapons(1)

Organisms, toxins, subunits, etc.

(2)

used as raw materials for military

Equipment for the production of
military bacterial agentsbacterial agents
Category 4. Missiles(1)Rockets,

production

andtesting(15)

equipment(1-2)

Structural materials for rockets or
unmanned aerial vehicles

Unmanned

aerialvehicles,(16)

production and testing equipment

Accelerometers,

gyroscopes,

navigation equipment for rockets
and production equipment therefor(2)

Rocketguidancesystems,(17)

production and testing equipment

Flight controllers, attitude controller,
and testing equipment, proofreadingmachinery(3)

Propulsion units, production and(18)

Avionics equipment for rockets

testing equipment(4)

Flow-forming machines(18-2)Heat batteries for rockets(5)Servo valves, pumps usable for(19)

Gravity meters gravity gradiometerspropellant controllers, or bearing

for aircraft or vessels

usable therefor(6)

Propellants, raw materials therefor

(20)

Lunch

pads

and

supporting

equipment for rockets(7)

Equipment for the production and testing(21)

telecontrol equipment for rockets

of propellants and raw materials(8)

Power mixers

(9)

Jet

Radio telemetry equipment, radio(22)

Electronic computers on board rockets

the

(23)

A/D converters for rockets

Equipment for the production of(24)

Vibration

mills,

equipment

forproduction of metal powders(10)composite materials, fibers, prepreg

test

equipment,windtunnels, etc.

and preform(11)

Nozzles(24-2)

Electronic computers for designing rockets(12)Equipment for the production of(25)

Materials or equipment for reducing acoustic

nozzles and re-entry vehicle nose tips

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(13)Isostatic presses(26)

Microcircuits, detectors and radomes
for rockets(14)

Furnaces for the densification ofcarbon-carbon composite
Category 5. Advanced materials(1)

Products of fluorine compounds(11)

Vibration control liquid(2)

Copolymers of vinylidene fluoride, etc.

(12)

Refrigerant liquid(3)

Aromatic polyimide products(13)

Titanium

boride,semi-finishedceramic products(4)

Tools for the superplastic forming of(14)

Ceramic composites

Ti, Al alloys(5)

Alloys of Ni, Ti, Mg, etc.

(15)

Polydiorganosilane, polysilazane, etc.

(6)

Metallic magnetic materials(16)

Polymerizable
compounds
polymer

non-fluorinatedandnon-fluorinated(bismaleimides,

aromaticpolyamide-imides, polyetherimide, etc.)(7)

Uranium-titanium alloys, tungsten alloys(17)

Copolymers of vinylidene fluoride, etc.

(8)Superconductive materials(18)

Fibrous, prepregs, performers, etc.

(9)Hydraulic fluids, etc.

(19)

Boron, boron mixtures, boron alloys,
guanidine nitrate, nitroguanidine(10)

Lubricating materials
Category 6. Material processing(1)

Berings(6)

Measuring equipment(2)

Numerically-controlled machine tools(7)

Robots(3)

Gear producing machine tools(8)

Feedback equipment, etc.

(4)Isostatic presses(9)Spin-forming machine(5)

Coating equipment
Category 7. Electronics(1)

Integrated circuits(12)

Signal generators(2)

Microwave equipment, components(13)

Frequency signal analyzersof millimeter wave equipment, etc.
(3)

Signal processing equipment(14)

Network analyzers(4)Equipment using superconducting(15)

Atomic frequency standards(15-2)

Spray cooling thermal management

materials(5)Superconducting electromagnets

systems
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(6)Battery cells, primary, secondary,(16)

and photovoltaic cells

Equipmentformanufacturing

semiconductor devices, integrated
circuit and materials(7)

High energy storage capacitors(17)

Masks or reticles(8)

Encoders(18)

Semiconductor substrates(8-2)

Thyristor device, thyristor module(19)

Resists(8-3)

Semiconductor device and module(20)

Organometallic compounds of Al,
Ga, In(9)

Sampling oscilloscope(10)

Waveform

digitizers,transient(21)

Hydrides of P, As or Sb(22)

Silicon carbide wafer, ingot, preform,

recorders
(11)

etc.

Digital instrumentation recorders
Category 8. Computers(1)

Electronic computers
Category 9. Telecommunications(1)

Telecommunicationtransmission(5-5)

equipmentInternet

protocolnetwork

communications

surveillancesystems or equipment(2)

Electronic chargers(6)

Equipment

for

the

design,production, etc. of (1)-(3), (5)-(5-5)
above
(3)

Optical fiber communication cables,

(7)

etc.
(4)

Information

securityequipmentusing encryption

Deleted(8)

Equipmentforpreventing

theleakage of information transmission
signals, etc.
(5)Phased array antennas(9)

Same as (7) but without encryption(5-2)

Radio direction finding equipment(10)

Communication cable systems for
detecting surreptitious intrusion(5-3)

Telecommunication

jamming(11)

equipment, parts, therfor(5-4)

Equipment

for

the

design,production, etc. of (7)-(10)Position detecting equipment using
electromagnetic

interference

observation technology

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Category 10. Sensor and lasers(1)

Underwater acoustic equipment(8-2)

Laser microphone(2)

Optical detectors, coolers(9)

Magnetometers,

magnetic

gradiometers, calibration equipment
therefor(3)

Optical sensing fibers(9-2)

Deep water detector(4)High-speed cameras(10)

Gravity meters, gravity gradiometers(5)

Reflectors(11)

Radars(6)

Optical components of zinc selenide,

(12)

Light

zinc sulfide or for space use(7)reflectancemeasuringapparatus

Controllers of optical equipment or(13)components

Equipment for the production ofgravity meters(7-2)

Aspherical optical elements(8)

Gas laser oscillators, etc.

(14)

Optical detectors, etc.

Category 11. Navigation and avionics(1)

Accelerators(4)

Gyro-astro compasses, device that derive
position or orientation by means ofautomatically tracking celestial bodies orsatellites, electromagnetic wave receivers
for global navigation systems, etc.

(2)

Gyroscopes(4-2)

Underwatersonarnavigation

systems(3)

Inertial navigation systems(5)

Equipment for testing, production,etc. of (1)-(4-2) above

Category 12. Marine(1)

Submersible vessels, surface-effect(6)

Air independent power systems

vehicles, etc.
(2)Components or accessories of vessels(7)

Water tunnels(3)

Ocean salvage systems(8)

Syntactic foam

(4)

Underwater cameras(9)

Self-contained diving equipment, etc.

(5)

Underwater robots(10)Sound generator used in deep water

Category 13. Propulsion(1)

Gas turbine engines(4)

Unmanned aerial vehicles(2)

Satellite or spacecraft for space(5)

Equipment

development

for

the

testing,measuring, inspection, etc. of (1)-(4)and 15(10)52001-064_本文.indd

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(3)Rocket propulsion systems
Category 14. Miscellaneous(1)

Metallic fuel in particle form

(7)

Robots or their controllers(2)

Additives or precursors of propellant(8)Electrically triggered shutters(9)Tear gases, riot agents, spraying

powders, explosives(3)

Diesel engines

equipment, etc.
(4)

Deleted(10)

Small explosive devices(5)

Self-contained diving equipment, etc.

(11)

Explosive detector(6)Construction machineries speciallydesigned for aerial transport
Category 15. Sensitive items(1)

Inorganic fibers, etc.

(6)

Optical detectors specially designed
for space applications(2)

Electric

wave

absorbers

and

(7)

Radars and parts therefor(8)

Submersible vessels that can cruise

conductive polymeric materials(3)

Nuclear heat source materials

independently(4)

Telecommunicationtransmission(9)Soundproofing devices

to

(10)

Ramjet engines, scramjet engines,

equipment
(4-2)

Radio

equipment

controldetonation of small explosives
(5)

etc.

Underwater acoustic equipment

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Appendix 4

Catch-all Control Flowchart(WMD Catch-All Control and Military Catch-All Control)

Inquiry
Yes
Informed by METI?
No

NoIs the item subject to catch-all control?
Yes

Yes

Is the destination one of the 27 countries?
No
Yes

Is

the

end-usefor

WMD-related

activities?
No
Is the destination under UN arms embargo?

No

Yes
Yes

Is the end-use conventional weapons-related?

No

Is the end-user engaged in WMD-related
activities, or on the “End-User List”?

No

Yes
No

Apparently used for a purpose otherYesthan any WMD-related activities?

License required

No license required

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Appendix 5
The Commodity Watch List for WMD Catch-All

A list of items that could possibly be used for the development, manufacture, use or storageof WMD (N: Nuclear weapons, M: Missile, B: Biological weapons, C: Chemical weapons)(1) Tributyl phosphate (TBP)(N)(2) Carbon/Glass/Aramid fiber(3) Titanium alloys(N, M)(4) Maraging steel(N, M)(N, M)(5) Aluminum alloys tubes with a diameter of more than 75 mm(6) Flow-forming machines(7) N/C Machine tools(8) Isostatic presses(N)(N, M)(N, M)(N, M)(9) Filament winding machines(10) Frequency changers(N, M)(N)(11) Mass spectrometers and ion sources(12) Vibration test systems(N)(N, M)(13) Centrifugal multiplane balancing machines(N, M)(14) Pressure transducers (N, M)(15) Non-destructive inspection equipment(N, M)(16) Oscilloscope or waveform digitizers and transient recorders(17) High power/voltage DC power supplies(18) Generators

(N)

(N)

(N)

(19) Vacuum pumps(N)(20) Radiation-hardened robots(N)(21) TIG welding units, electron beam welding units(N, M)(22) Radiation monitoring and detection equipment(N)(23) Mill for fine powder(M)(24) Karl Fischer moisture equipment(M)(25) Equipment designed for producing prepregs(26) Artificial graphite(27) Gyroscopes(N, M)(M)(28) Rotary encoders(M)(29) Trucks (Tractors, Trailers, Dump trucks)(30) Crane trucks

(M)

(M)

(M)

(31) Chambers for fermentation(32) Centrifugal separators(33) Freeze dryers

(B)

(B)

(B)

(34) Reactors (C, M)
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(35) Agitators(C, M)(36) Heat exchangers or condensers(C, M)(37) Distillation or absorption columns(38) Filling equipment(C, M)(C, M)(39) Unmanned air vehicles that are specially designed for incorporating spray machines(M, B, C, M)(40) Spray machines that are specially designed for installing in unmanned air vehicles(M,

B, C, M)

The 12 items applied specifically to the exports to Syria(1) Draft chamber (C)(2) Protective equipment for respiration attached to full-face mask (B, C)(3) Aluminum chloride (CAS 7446-70-0), dichloromethane (75-09-2), N, N – dimethylaniline(121-69-7), isopropyl bromide (75-26-3), isopropyl ether (108-20-3), mono-isopropylamine(75-31-0), kalium bromide (7758-02-3), pyridine (110-86-1), sodium bromide (7647-15-6),
sodium metal (7440-23-5), tributylamine (102-82-9), triethylamine 8121-44-8), trimethylamine(75-50-3) (C)(4) Diethylene triamine (111-40-0) (C)(5) Butyrycholinestrase, pyridostigmine bromide (101-26-8), obidoxime chloride (114-90-9)(C)(6) Bio safety cabinet, globe box (B)(7) Batch-type centrifugal machine (B)(8) Fermentation tank (B)(9) Reactor, agitator, heat exchanger, condenser, pump (excluding item 11 below), valve,container, distiller, absorption tower (C)(10) Clean room, fan equipped with HEPA filter (B)(11) Vacuum pump or its attachments (C)(12) Equipment for analyzing and detecting chemical substances, their parts andattachments(C)56001-064_本文.indd

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Appendix 6

The Guideline for Judging “When Apparent”
This guideline is provided by METI to help exporters make proper judgment if an item to beexported will apparently be used for a purpose other than the WMD-related activities
stipulated in the regulations related to catch-all control.
[The items’ end-use and specifications](1) The importer, end-user, or their agent has clearly explained about the end-use.
(2) The customer’s need for the items is reasonable for their business and technologicalcapabilities.
[Place of installation](3) The customer has clearly identified the place of the items’ installation or use.
(4) No such information is given that the place of installation or use is inside or vicinity of
military facilities or a classified area where only limited persons are allowed to enter, orthat the stated end-use is suspicious.
(5) The customer has made no excessive requirements for security measures fortransportation, installation, etc.
[Related facilities and equipment](6) The customer has sufficiently explained about the facilities where the items will be used,
and about the raw materials to be brought in to the facilities.
(7) The combination of the items, the facilities where the items will be used, and the raw
materials to be brought in to the facilities is rational, matching each other correctly inview of the end-use of the items.
(8) The requirements for spare parts are not excessive.
(9) The customer has demanded equipment reasonably required in association with theitems.
[Packing, shipping mark, shipping method, and shipping route](10) The requirements for shipping mark, shipping method, etc. are not extraordinary.
(11) The shipping route is reasonable for the export items and destination.
(12) The required packing method and shipping mark match the shipping method or thedestination.
[Payment conditions and warranty](13) The amount, conditions, or method of payment is not too favorable.
(14) The contract is with a reasonable warranty condition.

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[Requirements for installation and confidentiality](15) The customer has made a reasonable request for sending supervisors for installation,
testing, etc.
(16) The customer has raised no excessive requirements for keeping secret of the information
about the items, ultimate destination, etc.
[Entities on the End User List](17) When exporting any item to any customer that is on the End User List, the exporter must
conduct an end-use checking carefully. The WMD symbol (Nuclear weapons, Biologicalweapons, Chemical weapons, or Missiles) attached to the entity on the list should notmatch the same that can be attached to the item when checked its characteristics referring,for example, to the Commodity Watch List.
[Others](18) Nothing more is suspicious in relation to the transaction: for example, the customer has
never given a clear answer to normal questions raised in the course of common businesspractice.

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Appendix 7

Parameter SheetParameter Sheet is a type of product classification form published by CISTEC. It is issued asa series of booklets published separately by category – with a title, Electronics (Category 7),
Computer (Category 8), Communications/Information security (Category 9), or the like. A
booklet is made of parameter sheets for all the controlled items that come under one
particular category, and each parameter sheet consists of a set of technological questions
related to one entry of a controlled item defined by a specific classification number set out inthe Export Trade Control Order and the Foreign Exchange Order.
Each question is made in consistence with a control parameter stipulated in the said Orders.
In the case of an encryption item, for example, some of the questions are related to theparameters of the following elements.
(1) Identification of the item
(2) Encryption algorithm(3) Key length(4) Encryption functionality(5) Eligibility to the Cryptography Note
So when a person conducts classification of a product, what must be done first is to identify
the classification number pertaining to the item, which is the key to the process; then he/sheshall pick up one parameter sheet corresponding to the item, answer the questions (yes orno) printed on the sheet, and determine the classification. The result should be either“controlled with that particular classification number,” or “non-controlled.”

As such,product classifications can be completed easily and precisely with a parameter sheet.
CISTEC issues a similar tool but with different format, that is, “Komoku- betsu Taihi Hyo”
(classification check sheet). Its difference from the Parameter Sheet is the wording of thequestions, which is the letter of law—exactly the same as what is stipulated in the Orders.
Also, while “Komoku-betsu Taihi Hyo” is available for Categories 1 through 15, Parameter
Sheet is available only for limited categories including Categories 7 to 10.
Exporters can use either Parameter Sheet or “Komoku- betsu Taihi Hyo” at their discretion.
Note that it is not mandatory for exporters to use those tools, but they can use them as
official documents to verify the correctness of the classification they conducted. Thus the
documents are used for the following purposes.
(1) to attach to a license application to be submitted to the authority when exporting
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controlled items(2) to submit to Japan Customs as a proof of “No License Required” when exporting
non-controlled items(3) to submit to a customer to notify the classification(4) to keep within the company as an evidence

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Appendix 8
The Commodity Watch List for Military Catch-All

No.

Goods

1

Ni or Ti alloy

1-2

Sintered magnet

1-3

Equipment to manufacture item 1-2 above, or parts therefor

2

Hydraulic

fluidscontaining

phosphate/cresol

ester,

tris(dimethylphenyl)phosphate, or trinormalbutyl phosphate3

Organic fiber, carbon fiber, or inorganic fiber

4

Bearings or components therefor

5

Machine tools listed below, or components therefor(1) Numerically controlled machine tools(2) Machine tools for generating optical quality surfaces (excluding
numerically controlled machine tools)(3) Dimensional inspection or measuring system (including machine tools
having such capabilities)

6

Secondary cells

7

Waveform digitizers and transient recorders

8

Electronic parts mounting robots

9Electronic computers or components therefor

10

Telecommunication transmission equipment

11

Phased array antennas

12

Telecommunication jamming equipment or components therefor

13

Position detecting equipment using electromagnetic interference observation
technology without sending out electromagnetic waves such as radio waves

14

Optical detectors, coolers therefore, or equipment using optical detectors

15

Optical sensing fibers

16

Laser oscillators or components therefor

17

Magnetometers, underwater electromagnetic field sensors, magnetic gradiometers,
or components therefor

18

Gravity meters

19

Radars or components therefor

20

Accelerators or components therefor

21

Gyroscopes or components therefor

22

Inertial navigation systems, other equipment using inertial forces, or components
therefor61001-064_本文.indd

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No.

Goods

23

Gyro-astro compasses, devices that derive position or orientation by means ofautomatically tracking celestial bodies or satellites, electromagnetic wave receivers
for global navigation satellite systems, components therefore, or airborne altimeters

24

Underwater cameras or components therefor25

Air-independent power systems

26

Self-contained diving equipment (open-circuit types) or components therefor

27

Gas turbine engines or components therefor

28

Rocket propulsion systems or components therefor

29

Equipment for the manufacture of the items listed in (27) or (28) above orcomponents therefor

30

Air vehicles or components therefore

31

Vibration testing equipment, wind tunnels, environmental testing equipment forthe development or testing of rockets or air vehicles, or components therefor

32

Flash X-ray machines

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Appendix 9

Notice relating to the End-Use Certificate (EUC)
Ministry of Economy, Trade and Industry
The item (goods, software or technology) that you are going to obtain are regulated to exportin accordance with the Foreign Exchange and Foreign Trade Act of Japan based on theagreements of the international export control regimes. The exporter/supplier has to obtain alicense from the Ministry of Economy, Trade and Industry (METI) of Japan. For this reason,
we ask for your understanding and cooperation about the following things;
1. We ask for your complete understanding and compliance of the contents of the End-Use
Certificate specified by METI and this “Notice relating to the End-Use Certificate”(hereinafter referred to as “Notice”). On that basis, place a check mark “☑” and put a
representative’s or authorized person’s signature in the space provided on the End-Use
Certificate. Complete two End-Use Certificates, one is for you to keep and the other one is forthe exporter.
2. When you transfer ownership and/or right of use of the items obtained this time to a third
party, verify that the new end-user is not involved in activities of development and/or
manufacture of weapons of mass destruction (including uranium enrichment, nuclear fuelreprocessing, heavy water production, manufacturing of rocket or unmanned aerial vehicles),or activities of development and/or manufacture of arms.
3. When you transfer the ownership and/or right of use of items obtained this time to adomestic third party, owing to unavoidable circumstances, you shall present End-Use
Certificate specified by METI with your signature and this Notice to the new end-user andyou shall request to obtain from new end-user to complete two End-Use Certificates with thesignature in the same way you are going to do this time. One of the Certificates is for the new
end-user to keep and the other one is for your preservation.
4. When you re-export the items you obtained this time, owing to unavoidable circumstances,
you shall obtain a prior written consent from the exporter/supplier who is obliged by METI
to do so. When doing so, you need to submit objective documents such as business registerbook of the new end-user, corporate brochures, etc. to explain and prove the existence of the
new end-user and their business activities. Furthermore, you need to submit End-Use
Certificate specified by METI with the signature of the new end-user (Complete twocertificates, one is to the new end-user and the other one is to submit to METI through theoriginal exporter/supplier). If the exporter/supplier does not exist, please ask METI.
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5. When METI finds it necessary in the future, it may ask directly or throughexporter/supplier about the status of use and storage of the items and who is holding theownership and/or right of use of the item you obtained this time. At that time, we ask you toprovide all the cooperation possible.
6. Any false statements or concealment of any fact in connection with this statement may
result in giving any negative effect toward METI’s licensing policy in the future.

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Overview of Japan's Export Controls(Fourth Edition)
平成27年6月

第4版

第 1 刷発行

発

行：一般財団法人 安全保障貿易情報センター
東京都港区虎ノ門1-1-21（新虎ノ門実業会館4階）
TEL 03（3593）1147
FAX 03（3593）1136

印

刷：株式会社 昌文社

Printed in Japan
落丁・乱丁本はお取替えいたします。
禁無断転載© CISTEC. 2015. All rights reserved.

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