Ⅴ Liquor Administration
About the NTA～ Taking various measures for the development of liquor business ～The NTA is making proactive efforts for the sound development of liquor business, not to mention forrealizing the proper and fair taxation of liquor tax.
Liquor business not only formed a historically and culturally important local industry but also hasenergized the countryside and created the new value as Cool Japan in recent years. Its development
contributes to revitalizing regional economies and the Japanese economy.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

From this point of view, the NTA, as the competent authority in the business, will continue to strive
to identify issues, needs, etc. in the liquor industry and strengthen efforts for the development of liquor
business in coordination and cooperation with related government offices, organizations and others.
On the other hand, liquor is a product that needs social considerations since it makes people drunkor addicted to it. Therefore, the NTA also responds to efforts to accommodate social requirements
appropriately.

Proper and Fair
Taxation and Collection

1

Situation of Liquor Industry⑴ Situation of domestic market
The taxable volume of liquor has declined since it peaked in 1999.

Remedy for
Taxpayer Rights

It is apparent that the trend in the composition of taxable volume of each kind of liquor products has
considerably changed recently. The taxable volume of beer, in particular, declined considerably, because
there seems to be the shift of consumption from beer to low-priced liquor, such as sparkling liquor, chuhai
and beer-like products (the so-called new genre drinks).

（ten thousand kl）
1,017
1,000

LiquorAdministration■ Changes in taxable volume
Changes in taxable volume
Volume peaked in FY1999 (10,170,000 kl)
Volume of FY2019 is under 90% of its peak.
865

Other
Fruit wine andsweet fruit wine

42
46

600

253

Ensuring Proper
Administration of Services
by CPTAs

Whiskey andbrandy800

Continuous
distillation Japanesespirits (Shochu)
Pot distillation
Japanese spirits(Shochu)
Sake
Liqueurs

400

Sparkling liquor

235

Beer

Evaluation of
Policies

Other brewed
liquors

39
60
200

0

1970 75 80 85 89

93

98

2003

08

13

2019（Fiscal year）（Source: National Tax Agency Annual Statistics Report）

Statistics

Although most business operators in the liquor industry are small and medium enterprises, they
are engaged in efforts, such as product differentiation, emphasis on value and overseas expansion, andmany of them have managed to grow. Recently, business operators in different industries, startups andmoreover, foreign people are entering the market too.
NATIONAL TAX AGENCY REPORT 2021

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Ⅴ

Liquor Administration⑵ Situation of the export of liquor made in Japan
Looking at the overseas market, in recent years, liquor made in Japan has gained global recognition
through winning international competitions and others.
Against that backdrop, the export value of liquor made in Japan reached about 71.0 billion yen (7.5%
increase from the previous year) in 2020, renewing its record high for nine consecutive years.

■ Trend in the export amount of liquor which made in Japan（million yen）
80,00070,00061,82760,00054,50350,00039,02940,00030,00066,08325,097

71,0301,811 348
1,201
2,019
5,772
8,623

Other
Wine
ShochuGin and Vodka
Beer42,99624,141

Liquors
Sake

29,351

Whiskey

20,00027,115
10,000
0

2013

2014

2015

2016

2017

2018

2019

2020

（Source: “Foreign Trade Statistics” by Ministry of Finance）⑶ Impact of the Covid-19 pandemic
Due to the impact of the expansion of the Covid-19 pandemic, domestic liquor consumption has further
declined particularly at restaurants since April 2020. On the other hand, exports temporarily saw asignificant drop particularly to Europe and the U.S. but have recovered since August the same year, andthe total amount of exports for the year turned positive.

■ Trend of domestic liquor consumption in 2020
(Rate of year-on-year increase/decrease in percentage)

January February March

April

May

June

July

August September October November December Total

Consumption
at home

+5.2

+12.5

+22.5

+26.9

+17.4

+12.2

+11.7

+5.9

+22.1

+14.2

+8.2

+13.6

Consumption
at restaurants+16.1+12.3 ▲ 51.9 ▲ 90.0

▲ 88.0▲ 62.5▲ 52.6▲ 63.6▲ 53.3▲ 35.9▲ 57.2▲ 81.7▲ 52.7

Consumption
at home andrestaurants+9.5+12.5 ▲ 13.6 ▲ 17.1

▲ 9.0

▲ 6.3

▲ 7.0

▲ 10.2

▲ 9.5

+2.9

▲ 10.2▲ 24.1

▲ 8.1

+9.5

(Source: Average amount of consumption expenditure per household “with two-or-more-person” [in nominal terms] in the 2020 Family
Income and Expenditure Survey by the Statistic Bureau, the Ministry of Internal Affairs and Communications)

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NATIONAL TAX AGENCY REPORT 2021

Efforts of the NTA

About the NTA

2～ Promotion of liquor business ～In promoting liquor business, the NTA endeavors to provide support for each assistance project and improvethe environment in a way that allows business operators, industrial associations and others to come up withEfforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

ingenious ideas and make ambitious efforts under the appropriate division of roles between the private andpublic sectors. In addition, the NTA, as a government agency, properly deals with issues that the private
sector cannot handle, such as improvement of the system and negotiations with foreign governments.
Furthermore, we assist liquor manufacturing industry in strengthening its technical capabilities in addition
to paying attention to stabilizing the business foundation of small and medium enterprises.

Proper and Fair
Taxation and Collection⑴ Initiatives for the recovery of domestic consumption① Promotions towards the recovery and expansion of domestic liquor consumption
Since domestic liquor consumption has significantly dropped particularly at restaurants due to the
expansion of the Covid-19 pandemic, the NTA carried out promotions for the recovery and expansion ofdomestic liquor consumption in coordination with each industry.

Remedy for
Taxpayer Rights

a. Japanese wine fair

The NTA held a distribution-style seminar connecting with restaurants throughout the country online inorder to recover the consumption of Japanese wine, expand the sales channel and bring domestic demand.
We have also released a website “Japanese Wine Fun Site” (https://nihonwine-fun.nta.go.jp [inJapanese]) and distributed information, etc. on Japanese wine so that consumers can be more familiar
with Japanese wine.

LiquorAdministrationb. Craft beer online festival

For the recovery and expansion of craft beer consumption and the revitalization of the producing regions
and peripheral industries, the NTA held an online communication event between makers who convey
the attractiveness of craft beer and consumers, and strove to improve the recognition of craft beer andpromoted the use of the Internet for selling and restaurants’ take-out service.

Ensuring Proper
Administration of Services
by CPTAsc. Campaign for rediscovering the attractiveness of liquor shops in town

The NTA held a liquor shop fair in order for liquor shop owners in a community to convey the attractivenessand characteristics of local liquor and to raise consumers’ interests through tasting, etc.

d. Registration of breweries in Japan on the online map

By establishing an environment where consumers can easily access to brewery information, the NTA
registered and displayed the detailed information of breweries who desired the publication on the Internet

Evaluation of
Policies

map in order to bring interests in liquor made in Japan and recover the consumption.

② Establishment of the Subsidy to Assist the Structural Transformation of
Liquor Business (Frontier Subsidy)
While liquor businesses are facing structural issues such as a decline in domestic consumption, a decline
in the number of liquor business operators and aging, it is necessary to encourage the management
reform of liquor business operators and the structural transformation of liquor business in order to cope

Statistics

with these issues.
Based on the perspective, “The Subsidy to Assist the Structural Transformation of Liquor Business(Frontier Subsidy)” was established with the third supplementary budget for FY2020, which will assist
product differentiation, diversification of sales method and new and advanced initiatives regarding theuse of ICT technology.
NATIONAL TAX AGENCY REPORT 2021

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Ⅴ

Liquor Administration⑵ Cultivation of overseas demand
In the “Expansion and Implementation Strategies for Exports of Agriculture, Forestry and Fisheries Products
and Food” (decided by the Headquarters on Creation of Regional Vitality in the Agriculture, Forestry and
Fisheries on December 15, 2020), the three types of liquor (sake, whisky and authentic shochu/awamori)
were focused as main export regarding liquor items, and target countries, export target, etc. by item
were determined. Aiming to achieve the government objective of raising exports of agriculture, forestry
and fisheries products and food to 2 trillion yen by 2025 and 5 trillion yen by 2030, the NTA will actively
strive to improve the recognition and expand sales channels particularly for these three items based on
the strategies in order to further expand exports of liquor made in Japan.

a. International negotiations for elimination of customs duties and import restrictions, etc.

The NTA is seeking elimination of customs duties and import restrictions, protection of Geographical
Indication (GI), etc. in international negotiations on EPA and others.
Regarding the export of liquor made in Japan to the EU region, the EPA between Japan and the EU1,
which entered into force on February 2019, realized (1) immediate elimination of customs duties on
all kinds of liquor, (2) relaxation of import restrictions on “Japan Wine,” (3) relaxation of restrictions on
the capacity constraint on pot distillation Japanese sprits (shochu) and (4) protection of Geographical
Indication for liquor within the EU.
As for the Japan-U.S. Trade Agreement which took effect in January 2020, the U.S. committed totaking the following actions: (1) proceed to amend the capacity constraint on wines and distilled spirits,(2) proceed to consider protection of 10 Geographical Indications of Japanese liquor within the U.S., (3)streamline the procedure for the approval of labels necessary for sales of liquor in the U.S., and (4) review
the treatment of Japanese Shochu in the U.S. market. Of which, the capacity constraint on distilled spirits
was relaxed in December 2020, which has enabled the distribution using one-sho bottles (1.8 l), four-gobottles (720 ml), etc. in the U.S.
In the Japan-U.K. Comprehensive Economic Partnership Agreement (Japan-U.K. EPA) that came into
effect in January 2021, the same contents as the Japan-EU EPA were maintained regarding elimination ofcustoms duties on liquor, relaxation of import restrictions on Japan Wine and protection of Geographical
Indication, and at the same time, further relaxation of capacity constraint was realized.
In the Regional Comprehensive Economic Partnership (RCEP) Agreement signed in November 2020,
Japan acquired gradual elimination of customs duties on sake, etc. from China and Korea, which concluded
EPA with Japan for the first time.
After the accident at Fukushima Daiichi Nuclear Power Plant caused by the Great East Japan
Earthquake, some export destinations introduced import restrictions2. The NTA will continue to ask thatthese restrictions be lifted based on scientific evidence.

b. Expediting and simplifying export procedures

In the customs clearance procedure for exports of liquor from Japan, should a destination country require a
certification issued by the NTA, the NTA strives to issue the required certification as swiftly as possible.
In September 2019, from the perspective of expediting the issuance process of the export certification,
the NTA improved the flow of administrative procedures from receipts of requests to issuances of various
certifications.
In April 2020 the application procedure on the exemption of liquor tax for exports has been simplified
as the presentation of an export statement to the District Director of the Tax Office became unnecessary.
Further, since April 2021, the NTA has introduced an export certification issuing system, which enables

1 This is the Economic Partnership Agreement (EPA) concluded between Japan and the EU with the aim of strengthening the economic relationshipin international trade, investment and others and is a comprehensive treaty that comprises of 23 chapters, covering not only the international tradeof goods but also services and intellectual proprietary rights.
2 After the accident at Fukushima Daiichi Nuclear Power Plant caused by the Great East Japan Earthquake, some export destinations introduced
import restrictions. The NTA has been urging these countries to lift or to relax the restrictions in cooperation with relevant government agencies,
the National Research Institute of Brewing and others. As the result, restrictions on Japanese liquors have been lifted or relaxed in the EU, Brazil,
Malaysia, Russia, Thailand, Egypt, French Polynesia, Dubai ,Abu Dhabi, Brunei, Singapore, Morocco and Egypt (as of May 2021).

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NATIONAL TAX AGENCY REPORT 2021

About the NTA

application and issuance of certification centrally, aiming to improve business operators’ convenience byapplication through the Internet.

c. Support in business matching (to help sellers to find buyers)

The NTA supports business matching between liquor business operators and importers/distributors inoverseas through participation in large-scale exhibitions held in overseas, invitation of overseas buyers
and business meetings.

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

In FY2020, having been unable to hold face-to-face business meetings with overseas buyers due tothe impact of the Covid-19 pandemic, we held “online business meetings” with buyers in 11 countries orregions including China and Hong Kong.
In Japan, while supporting business matching between breweries who are motivated for exports
and export trading companies/
wholesalers,

welaunchedaProper and Fair
Taxation and Collection“consortium for promoting exportsof liquor made in Japan,” which
providesvarioussupportinacomprehensive manner, and held
13 seminars and business matching
services concerning exports mainly

Online business meetings

Remedy for
Taxpayer Rights

online.

d. International promotion

To promote the export of liquor made in Japan,
the NTA strives to enhance the internationalrecognition of liquor made in Japan throughvarious measures, such as performing promotional

LiquorAdministration

activities in international events and inviting
overseas liquor experts to sake breweries.
In FY2020, since overseas travelling wasdifficult due to the impact of the Covid-19
pandemic, we held an online promotion eventin coordination with the Japan House in London,

Online promotion with the Japan House in London

Ensuring Proper
Administration of Services
by CPTAs

U.K. in February 2021 on the theme of Japanese sake targeting local liquor business operators, and strove
to increase the recognition and understating of Japanese sake.

⑶ Branding and promotion of sake brewery tourism
In FY2020, as a measure for adding high value to liquor made in Japan and cultivating inbound demand,
the NTA provided support in establishing branding strategies based on overseas needs as well as modelcases of an initiative that aims to expand inbound consumption by combining tourism resources including

Evaluation of
Policiessake breweries, and conducted research and empirical analysis on valid methods, etc. In addition, while
publishing the results, in FY2021, we are making efforts to promote branding in the whole industry andsake brewery tourism by making these efforts assistance projects and prompting proactive efforts byliquor business operators.

a. Preparation and publication of back labels for exporting Japanese sake

Cooperated by the Japan Food Product Overseas Promotion Center (JFOODO), we prepared a “standard
Statistics

back label” and “labeling guideline” for exports in August 2019 and increase awareness among business
operators and industry associations so that consumers overseas are able to recognize Japanese sake andeasily choose comparing each other.
The NTA is striving for the further popularization of“standard back label”including the use of the“data creation system for standard back label”developed by JFOODO in April 2021.

NATIONAL TAX AGENCY REPORT 2021

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Ⅴ

Liquor Administration

Column8

Project for branding liquor made in Japan and promoting sakebrewery tourism

In FY2020, in the aim of branding the whole liquor industry and promoting sake brewery tourism, the NTA
conducted research and analysis on effective methods for establishing model cases of the initiative for adding highvalue to liquor made in Japan and increasing the recognition, and published the results.
In FY2021, based on the results, the NTA will continue to support business operators who are motivatedtowards branding and the promotion of sake brewery tourism in the form of assistance project.

Outline of project implementation— Branding of liquor made in Japan and promotion of sake brewery tourism■ Promotion project for branding liquor made in Japan
Regarding the initiatives implemented with 24 themes, we classified issues according to the stage of overseas
deployment by business operators and the contents of the initiatives, and indicated the directions of solutions for
those issues.
Corresponding value chain（1）
Improved
recognition andeasy-to-understandinformation

Develop

ConsumeLegal system（2）
Cultivation of sales
channelDevelop（3）
Appropriate quality
control

Develop Produce Distribute（4）
Branding（5）
Ways of display
rules

Distribute Consume

Develop Produce Distribute Consume

Develop

Distribute
Legal system

Hypothesis issues

Direction of solutions■ E s t a b l i s h t h e w a y s o f p r o m o t i o n a n d ■ Develop products suitable for the marketof each country
information distribution for recognition by■ Select information upon setting the user
overseas consumers
base in each country■ Identify targets (country and consumer) topromote■ Verify a possibility to co-work with influencer ■ Business matching with local business
operators
or celebrity■ Prepare logistics such as export duties, ■ Prepare guides in expanding sales■ Prepare delivery and local receivers inimporters, etc.
overseas■ A quality control system from production■ Ensure product quality for overseas
to distribution■ Consider the quality of transportation and the■ Secure EC and couriers handling small
way of less increased transportation costsdelivery and reduce an increase in costs■ Verity the possibility of using EC, etc.
■ Select a promotion method upon the situation ■ M a r k e t i n g p l a n s i n t h e p h a s e s o frecognition, bringing demand and sales■ The way of corporate communication such as
expansion
production method, raw materials, breweries,■ Realize and carry out local partnerships foretc.
edged brands■ The way of marketing activities■ The ways of appropriate display and scale for ■ Develop and unify the label and display
system through the industrial groups, etc.
consumers (both general and professional)■ Overseas specifications of display rules such as ■ Give authority by co-working with overseas
experts
labels■ Promotion project for sake brewery tourism
In this project, we examined initiatives undertaken with 16 themes for the future development, while organizing
requirements for the established “sake brewery tourism” and viewpoints towards success by theme.

Brush up local
resources
Prepare an
environment
to accept
participants● Expand types ofliquor for sales● Develop products

other than liquor● Create branding

statements andsymbols● Combine with othersake breweries andlocal resources● Make routs● Cultivate guides● Oﬀer information● Make products

high-class, rare andhighly-priced● Discover and create newcustomer baseCreate organization and human resources

sake brewery
tourism

Enhancethe maintheme in acommunity

sake brewery＋αConnecting
individual
actions

Connecting individual actions: [more than sake brewery]
Prepare an environment to accept participants
The next action is to connect a brewery with otherbreweries and local resources and make a route, which
proceeds the preparation of an environment to accept
participants. In doing so, it is required to cultivate a guide
who conveys a unique “story” of each environment.

sakebrewery

Integrating
connected
actions

Individual action: [sake brewery] Brush up local resources
The first action to take is to brush up a brewery itself,
which is the most important local resource in sake brewery
tourism. This includes expanding types of liquor sold ata brewery, developing products other than liquor andcreating a brand statement that tells the brewery’s story
and a common symbol posted on all products.

Individual action[Initiatives required at each stage towards the development of sake brewery tourism]

Integrating connected actions: [sake brewery tourism]
Enhance the main theme in a community
Lastly, integrating connected actions and enhancing the environment’s main theme will create a “story,” which
requires to be differentiated from other sake brewery tourism and to improve the attractiveness through cooperationand competition within a community. In particular, paying careful attention to participants’ moves and reactions mayhelp to discover the community’s new attractiveness that was overlooked or lead to find themes to enhance.

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About the NTA

b. Expansion of the use of Geographical Indications (GI)

Under the Geographical Indication (GI) system, in the case that the characters of a liquor product oragricultural product unique to a specific production area (quality, recognition in society, etc.) have been
established, only the product that is produced within the production area and fulfills certain production
standards can exclusively use the name of its production area (the name of region as a brand).
The NTA is engaged in the designation and proliferation of GI from the perspective of enhancing brand

Efforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

value of liquor within and outside of Japan. We also provide support to the regions who seek consultations
on being designated GI by hosting information sessions and seminars, and preparing publicity materials
such as pamphlets.
As of June 14, 2021, the NTA has designated 17 Geographical Indications and hosted a symposiumwith the objective of increasing awareness among consumers.

Proper and Fair
Taxation and Collection

Designated geographical indications for liquor(as of June 14, 2021)

Nihonshu /Japanese Sake

Remedy for
Taxpayer Rights

Hokkaido（Japan）

Sake made only from rice grown in Japan and brewed inJapan may call itself “Japanese Sake.”

Nadagogo

LiquorAdministration

Yamagata

HarimaHakusan

Hagi

BarleyYamanashi

Iki

Rice

Kuma

Rice
（Awamori）

Sweet potato

SatsumaMie
Evaluation of
Policies

Wakayama
UmeshuRyukyuEnsuring Proper
Administration of Services
by CPTAs

Tone Numata

Saga

Product Category

Seishu/Sake (10)Wine (2)Statistics

Spirits (4)（Shochu/Awamori）

Other kinds ofliquor (1)(Liqueur)(Note) Locations colored in the map are indicated by prefectures and do not necessarily correspond to the areas of production.

NATIONAL TAX AGENCY REPORT 2021

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Ⅴ

Liquor Administrationc. Initiatives to establish the wine labeling rule

So far in Japan, “Japan Wine” which is made exclusively from domestic grapes, and wines made fromimported concentrated juice or imported wines, existed together in the market, causing the problem that
distinguishing one from the other by referencing the label was difficult.
In such backdrop, the NTA formulated the rule including the definition of Japan Wine “Standard
for Wine Production Process and Quality Indication”（Wine labeling Rule）. The rule came into effect in
October 2018.（See https://www.nta.go.jp/taxes/sake/hyoji/kajitsushu/index.htm [in Japanese].）In addition, the NTA holds symposiums for the consumers of Japan Wine and information exchange
sessions bringing industry associations and research institutes together.
By establishing such labeling rules, we will strive to elevate the brand power of Japan Wine.

Column9

Establishment of voluntary standards regarding the display ofJapanese whisky

The Japan Spirits & Liqueurs Maker Association participated by whisky makers established the “voluntarystandards for the display of Japanese whisky”and launched them on April 1, 2021 to protect consumers’interests,
secure fair competitions among business operators and improve liquor quality by contributing to proper product,
selection by domestic and overseas consumers.
The voluntary standards allow to display“Japanese whisky”if whisky fulfills the following definitions:■ Definitions of Japanese whisky※

Production method

Raw materials
Production

Malt (essential), grains and water collected in Japan
Sacchariﬁed, fermented and distilled at distillers in Japan

Storage

Filled in a wooden barrel of 700 l or less and stored for three years or more in Japan
starting on the next day of a ﬁlling date.

Bottling

Filled in a container in Japan with an alcohol content of 40 degrees or more when ﬁlled.

OthersThe use of caramel is allowed for slight adjustment of color tones※A transition measure, which allows the previous display until March 31, 2024 has been established for whisky sold bybusiness operators on or before March 31, 2021.

With the voluntary standards recently enforced being properly applied, the credibility of Japanese whisky is
expected to rise further, which will lead to expand demand even more going forward.
While attentively watching the industry’s voluntary initiative as above, the NTA will provide indirect support
for public awareness towards business operators and consumers so that the standards will become established.
For the details of the voluntary standards, see the Japan Spirits & Liqueurs Maker Association website (http://
www.yoshu.or.jp [in Japanese]).

⑷ Technological assistancea. Promotion of the spread of brewing technology, etc.

Each Regional Taxation Bureau has the Office of Analysis and Brewing Technology (including Chief Analystof the Okinawa Regional Taxation Office, and the same hereinafter) as its technological function to promote
the spread of advanced technologies, etc., including research results of the National Research Institute ofBrewing (NRIB), through activities such as giving advice and consultation to liquor manufacturers, holding
competitions, research workshops, etc. and dispatching officials to seminars, appraisals, etc., held bysake-making associations, etc.

b. Efforts to register Japanese sake, Shochu and Awamori, etc. as UNESCO
Intangible Cultural Heritage

A statement that“research will be started in FY2020 with a view to register Japanese sake, etc. as UNESCO

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NATIONAL TAX AGENCY REPORT 2021

About the NTA

Intangible Cultural Heritage”was included in the“Growth Strategy Follow-up”(approved by the Cabinet on
July 17, 2020). In addition, Prime Minister Suga made a remark in his administrative policy speech at the204th session of the Diet that“we will aim to register cultural resources such as Japanese sake and shochu
as UNESCO Intangible Cultural Heritage.”The NTA will continue to cooperate in research conducted by the
Agency for Cultural Affairs on the cultural value of Japanese sake, shochu, etc. and particularly the brewing
technologies, and implement the initiative towards the UNESCO Intangible Cultural Heritage registration byEfforts for Enhancement ofServices for Taxpayers andEfficiency of Tax Administration

preparing the conservation and utilization structure in coordination with breweries, etc.
Further, aiming for UNESCO registration, we will conduct literature research on the history and philosophy(artistry, etc.) of Japanese koji-based sake making craftmanship, interviews of chief brewers, create posters,
leaflets, etc. in order to foster the momentum towards the registration as UNESCO Intangible Cultural Heritage.
We will also carry out effective projects in coordination with the“Preservation Society of Japanese Koji-based
Sake Making Craftmanship”established in April 2021, etc.

Proper and Fair
Taxation and Collection

c. Support in the quality and safety of liquor

With the aim of ensuring the safety of liquor in all stages from liquor production to consumption andenhancing the level of quality, we give technological assistance concerning improvement, etc. in the
production process of liquor and confirm safety through actions including research and provision of
information on the radioactive substances of liquor.

d. Efforts by National Research Institute of Brewing (NRIB)

Remedy for
Taxpayer Rights

Serving as the technological base for the development of the liquor industry, NRIB actively conducts
research to increase the brand value of Japanese liquor including research that contributes to create
new value, as well as research to understand the characteristics of each brewing microorganism and raw
material, aiming to enhance the liquor making technology base.1
In addition, they co-sponsor liquor brewing courses and appraising fairs with the industrial groups andstrive to cultivate human resources in the liquor industry.

LiquorAdministration

Further, they promote outreach activities and open science, and conduct initiatives in coordination
with industry, universities, research institutions for public examinations, etc., and they make efforts to
spread brewing technologies, etc. while closely collaborating with the Offices of Analysis and Brewing
Technology in each Regional Tax Bureau that understands the current situation of each region.

⑸ Measures for small and medium enterprises (SMEs)

In order for the liquor industry, of which SMEs account for the majority, to adjust to change in the social
Ensuring Proper
Administration of Services
by CPTAsand economic conditions properly, the NTA takes various measures, for example, holding seminars lectured
by experts including SME Management Consultants (SMECs), assisting in drafting plans for raising the ability
to run business, stipulated by Small and Medium-sized Enterprise Business Enhancement Act, in addition to
supporting diverse efforts by industrial associations, such as the modernization project by the Japan Sakeand Shochu Makers Association.
Moreover, in coordination with related government offices and organizations, local governments and

Evaluation of
Policies

others, the NTA provides business operators and industrial associations with information on governmental
measures for SMEs (consultation desks, subsidies, the tax system, financing, etc.) to promote the use of
these measures.

⑹ Establishment of a fair trading environment of liquor

In establishing a fair trading environment of liquor, the NTA is making liquor business operators awareof the “standards for fair trading of liquor,” etc., prompting liquor business operators to take voluntary
initiatives and effectively conducting factual surveys on the liquor trading situation. In addition, based on

Statistics

the provision of the partial amendment of liquor tax laws promulgated in June 2016, we will consider thereview of the standards.
1 The NRIB’s missions during the “the fifth term of the medium-term objective period” from FY2021 to FY2025 is (1) to strive to develop the liquor
industry, (2) to strive for the appropriate application of liquor tax laws, and (3) to make efforts as the national center for liquor, and they conductvarious duties based on these missions.

NATIONAL TAX AGENCY REPORT 2021

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Ⅴ

Liquor Administration⑺ Response to social demands
a. Promotion of resource recycling

From the perspective of building a recycling-based society through activities such as recycling liquor
containers and reducing food waste, as a member of the food industry, the NTA carries out PR andenlightenment activities through associations in the liquor industry to ensure that efforts, including theone to recycle liquor containers, are further promoted, while designating October of every year as “3R1
Promotion Month” and carrying out enlightenment activities with relevant ministries and agencies.
Based on the “Plan for Global Warming Countermeasures” determined by the Cabinet in 2006, weconduct appraisal and evaluation of CO2 reduction goal (Action Plan for Achieving a Low-carbon Society)undertaken by the beer industry in the Liquor Subcommittee under the National Tax Council.

b. Measures to prevent those under the age of 20 from consuming alcoholWith the purpose to prevent consuming alcohol under the age of 20, in addition to preparation of
educational posters and pamphlets, the NTA designates April of each year as the “Month to emphasize
prevention from consuming alcohol under the age of 20,” and carries out enlightenment activities incoordination with relevant ministries and agencies, and industry associations.
In addition, through establishment of “Labeling standard concerning prevention from consuming alcohol
under the age of 20 (public notice)” and liquor sale management training, the NTA provides guidance toliquor business operators to ensure practice of adequate sales management of alcohol products whileissuing documents in joint names with relevant ministries and agencies to business operators of liquor
sales, requesting strict practice of age verification in selling alcohol product.

c. Measures against Health Problems Caused by Alcohol

Considering “The Basic Act on Measures against Health Problems Caused by Alcohol” (the second plan,from April 2021 to March 2026) formulated based on “The Basic Law on Measures to Prevent Damage
to Health due to Alcohol” enforced in June 2014, etc., the NTA implements initiatives for preventing
from consuming alcohol under the age of 20 and health problems due to alcohol in cooperation andcoordination with relevant ministries and agencies as well as associations in the liquor industry.
Basic Direction of Liquor Administration ̶ Mainly from the perspective of industrial development ̶“Proper and fair taxation and collection of liquor tax” “Sound development of the liquor business”
Current status of the liquor industry
Domestic market
Liquor exports

The domestic market has been shrinking over the medium to long term. On the other hand, a move of emphasizing value
is seen such as the unit price of sake is rising on a shipment value basis.
Exports have marked a record high for nine consecutive years since 2012. Exports of sake and whisky to the U.S. andChina have been leading the overall exports.

Major issues in the liquor industry and eﬀorts by the NTA

IssuesDevelopment of the liquor industry
Product diﬀerentiation, Cultivation ofemphasis on value,
overseas markets
etc.
(facilitation of exports)

Eﬀorts by the NTA

Branding project

Assistance projecton the structuraltransformation of
liquor business(development of
new products andservices)

Use of the Geographical
Indication (GI) system

PR and review of thedisplay standards

Expansionand implementation
strategies for exports
Promotion of sakebrewery tourism

Consortium forpromotion of liquor
exports
Participation in
exhibitions,invitation of buyers
and businessmeetings

International
negotiation

Ensuring compliance

Succession anddevelopment oftraditional techniques

Support for small
and medium-sizedenterprises

Proper executionof licensing systems,
etc.

Establishment ofa fair trading
environment, etc.

Assistance projecton the structuraltransformation of
liquor business (useof ICT technology)

Coordination with
the industrial
groups

Inspection, etc. of
licenses for liquor
production andsales

Examinations on
the actual statusof liquor tradeEﬀorts towards
the registration ofJapanese sake,etc. as UNESCO
Intangible Cultural
HeritageTechnologicalassistance by the
National ResearchInstitute of Brewing

Providing information
on measures forsmall and medium
enterprises(with relevant
ministries, agencies,
organs and local
governments, etc.)

Technical support
such as technicalconsultations

Understanding theactual status ofliquor breweries
and distributors

Oversight ofliquor businessassociations

Ensuring proper
displays, quality
and safety

Review of “Standards
for the Fair Trade of
Liquor”

Promotion of “The
Basic Act on
Measures against
Health Problems
Caused by Alcohol(the 2nd plan)"

Measures toprevent consuming
alcohol under theage of 20 andothersFor details of efforts by the NTA, see the "Sake no Shiori (the bookmark of liquor)" in the NTA website (https://www.nta.
go.jp/taxes/sake/shiori-gaikyo/shiori/01.htm [in Japanese]).
1 Refers to the first letters of R at the beginning of the three phrases: Reduce, Reuse and Recycle.

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NATIONAL TAX AGENCY REPORT 2021