Annex I
Schedule of the Interchange Association
Reservations for Measures referred toin paragraph 1 of Article 8
1.
This Schedule sets out with respect to the Interchange
Association, pursuant to paragraph 1 of Article 8, theexisting measures that are not covered by the following
provisions of this Arrangement:

2.

(a)

Article 3;(b)

Article 4; or(c)Article 7.

Each schedule entry sets out the following elements:(a)“Sector” refers to the general sector for which
the entry is made;(b)“Sub-Sector” refers to the specific sector forwhich the entry is made;(c)“Industry Classification” refers, whereapplicable, and only for transparency purposes,to the activities covered by the entry according
to the relevant industry classification codes. In
this regard, “JSIC” means Japan Standard
Industrial Classification set out by the Ministryof Internal Affairs and Communications, andrevised on November 6, 2007;(d)“Provisions Concerned” specifies the provisions
referred to in paragraph 1 for which the entry is
made;

(e)

“Level of Authority” indicates the level of theauthorities maintaining the measure(s) for which
the entry is made;(f)“Measures” identifies the existing laws,
regulations or other measures for which the entry
is made. A measure cited in the “Measures”
element:(i)means the measure as amended, continued, or
renewed as of the date of entry into forceof this Arrangement; and(ii)

includes any subordinate measure adopted ormaintained under the authority of andconsistent with the measure; and(g)“Description” illustrates, with regard to theprovisions referred to in paragraph 1, the nonconforming aspects of the existing measures forwhich the entry is made.

3.
In the interpretation of each entry, all elements ofthe entry shall be considered. Each entry shall beinterpreted in the light of the relevant provisions of thisArrangement for which the entry is made. The “Measures”
element shall prevail over all the other elements.
4.
For the purposes of this schedule, when the term
“foreign” is employed, it refers to something belonging toor coming from, or to characteristics of, other country or
region than Japan.

1Sector:Agriculture, Forestry and Fisheries(Plant Breeder’s Right)

Sub-Sector:
Industry
Classification:

Provisions
Concerned:

JSIC 0119

Miscellaneous crop
farming

JSIC 0243

Tree seed gathering andforest nursery services

JSIC 0413

Seaweed aquaculture

JSIC 0415

Seed aquaculture

Article 3
Article 4

Level of
Authority:

Central Authority

Measures:

Seeds and Seedlings Law(Law No. 83 of 1998), Article 10

Description:

A foreign person who has neither adomicile nor residence (nor the placeof business, in the case of a legal
person) in Japan cannot enjoy a plant
breeder’s right or related rights
except in any of the following cases:(a)where the country or region ofwhich the person is a nationalor citizen or the country or
region in which the person has adomicile or residence (or its
place of business, in the caseof a legal person) is acontracting party to theInternational Convention for theProtection of New Varieties ofPlants of December 2, 1961, as
Revised at Geneva on November
10, 1972, on October 23, 1978,and on March 19, 1991;

(b)where the country or region ofwhich the person is a nationalor citizen or the country or
region in which the person has adomicile or residence (or its
place of business, in the caseof a legal person) is acontracting party to theInternational Convention for theProtection of New Varieties ofPlants of December 2, 1961, as
Revised at Geneva on November
10, 1972, and on October 23,
1978(hereinafter referred to inthis Annex as “the 1978 UPOV
Convention”), or a country or
region in relation with which
Japan shall apply the 1978 UPOV
Convention in accordance withparagraph (2) of Article 34 of
the 1978 UPOV Convention, andfurther provides the protection
for plant genus and species towhich the person’s appliedvariety belongs; or(c)where the country or region ofwhich the person is a nationalor citizen provides Japanesenationals with the protection ofvarieties under the same
condition as its own nationals
or citizens (including a country
or region which provides suchprotection for Japanesenationals under the condition
that Japan allows enjoyment of
the plant breeder’s right or
related rights for the nationals
or citizens of that country or
region), and further provides
the protection for plant genus
and species to which theperson’s applied variety
belongs.

2

Sector:Finance

Sub-Sector:

BankingIndustry
Classification:

JSIC 622

Banks, except central
bank

JSIC 631

Financial institutions
for small-businesses

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Deposit Insurance Law (Law No. 34 of
1971), Article 2

Description:

The deposit insurance system only
covers financial institutions whichhave their head offices within thejurisdiction of Japan. The deposit
insurance system does not coverdeposits taken by branches offoreign banks.

3

Sector:Heat Supply

Sub-Sector:
Industry
Classification:

JSIC 3511

Heat supply

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in heat supply
industry in Japan.

4

Sector:Information and Communications

Sub-Sector:

Telecommunications

Industry
Classification:

JSIC 3700

Head offices primarily
engaged in managerial
operations

JSIC 3711

Regional
telecommunications,
except wire broadcast
telephones

JSIC 3731

Services incidental totelecommunications

Provisions
Concerned:

Article 3
Article 7

Level of
Authority:

Central Authority

Measures:

Law Concerning Nippon Telegraph andTelephone Corporation (Law No. 85 of
1984), Articles 6 and 10

Description:

1.
Nippon Telegraph and Telephone
Corporation may not enter the nameand address in its register ofshareholders if the aggregate of theratio of the voting rights directly
and/or indirectly held by the
persons set forth in subparagraphs(a) through (c) reaches or exceeds
one third:(a)a natural person who does nothave Japanese nationality;(b)a foreign government orauthority or its
representative; and(c)a foreign legal person or aforeign entity.

2.
Any natural person who does nothave Japanese nationality may notassume the office of director or
auditor of Nippon Telegraph andTelephone Corporation, Nippon
Telegraph and Telephone East
Corporation and Nippon Telegraphand Telephone West Corporation.

5

Sector:Information and Communications

Sub-Sector:

Telecommunications and Internet
Based Services

Industry
Classification:

JSIC 3711

Regional
telecommunications,
except wire broadcast
telephones

JSIC 3712

Long-distancetelecommunications

JSIC 3719

Miscellaneous fixed
telecommunications

JSIC 3721

Mobiletelecommunications

JSIC 401

Internet based services

Note:

The activities covered by thereservation under JSIC 3711,
3712, 3719, 3721 or 401 arelimited to the activities
which are subject to theregistration obligation
under Article 9 of theTelecommunications Business
Law (Law No. 86 of 1984).

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in telecommunications
business and internet based services
in Japan.

6

Sector:Manufacturing

Sub-Sector:

Drugs and Medicines Manufacturing

Industry
Classification:

JSIC 1653

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign Trade
Law (Law No. 228 of 1949), Article 27

Biological preparations

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261 of
1980), Article 3
Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in biologicalpreparations manufacturing industry
in Japan. For greater certainty,“biological preparations
manufacturing industry” deals witheconomic activities in an
establishment which mainly produces
vaccine, serum, toxoid, antitoxin andsome preparations similar to theaforementioned products, or blood
products.

7

Sector:Manufacturing

Sub-Sector:

Leather and Leather Products
Manufacturing

Industry
Classification:

JSIC 1189

Textile apparel andaccessories, n.e.c.

JSIC 1694

Gelatine and adhesives

JSIC 192

Rubber and plastic
footwear and its
findings

JSIC 2011

Leather tanning andfinishing

JSIC 2021

Mechanical leather
products, except gloves
and mittens

JSIC 2031

Cut stock and findings
for boots and shoes

JSIC 2041

Leather footwear

JSIC 2051

Leather gloves andmittens

JSIC 2061

Baggage

JSIC 207

Handbags and smallleather cases

JSIC 2081

Fur skins

JSIC 2099

Miscellaneous leather
products

JSIC 3253

Sporting and athletic
goods

Note 1:

The activities covered by thereservation under JSIC 1189
or 3253 are limited to theactivities related to leather
and leather products
manufacturing.

Note 2:

The activities covered by thereservation under JSIC 1694
are limited to the activities
related to animal glue(nikawa) and gelatine
manufacturing.

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign Trade
Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261 of
1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in leather and leather
products manufacturing industry inJapan.

8

Sector:Matters Related to the Nationalityof a Ship

Sub-Sector:
Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Level of
Authority:

Central Authority

Measures:

Ship Law (Law No. 46 of 1899),
Article 1

Description:

The Japanese nationality shall begiven to a ship whose owner is aJapanese national, or a company
established under Japanese law, of
which all the representatives andnot less than two-thirds of theexecutives administering the affairs
are Japanese nationals.

9

Sector:MiningSub-Sector:
Industry
Classification:

JSIC 05

Mining and quarrying ofstone and gravel

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Mining Law (Law No. 289 of 1950),
Chapters 2 and 3

Description:

Only a Japanese national or aJapanese legal person may havemining rights or mining leaserights.

10

Sector:Oil Industry

Sub-Sector:
Industry
Classification:

Provisions
Concerned:

JSIC 053

Crude petroleum andnatural gas production

JSIC 1711

Petroleum refining

JSIC 1721

Lubricating oils andgreases (not made inpetroleum refineries)

JSIC 1741

Paving materials

JSIC 1799

Miscellaneous petroleum
and coal products

JSIC 4711

Ordinary warehousing

JSIC 4721

Refrigerated
warehousing

JSIC 5331

Petroleum

JSIC 6051

Petrol stations(gasoline service
stations)

JSIC 6052

Fuel stores, except
gasoline service
stations

JSIC 9299

Miscellaneous businessservices, n.e.c.

Note 1:

The activities covered by
the reservation under JSIC
1741, 1799, 4711, 4721 or
6052 are limited to theactivities related to oil
industry.

Note 2:

The activities covered by
the reservation under JSIC
9299 are limited to theactivities related toliquefied petroleum gas
industry.

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in oil industry inJapan. All organic chemicals suchas ethylene, ethylene glycol andpolycarbonates are outside the scopeof the oil industry. Therefore,prior notification under the Foreign
Exchange and Foreign Trade Law is
not required for the investments inthe manufacture of these products.

11

Sector:Agriculture, Forestry and Fisheries,
and Related Services (except
Fisheries within the TerritorialSea, Internal Waters, Exclusive
Economic Zone and Continental Shelf
provided for in the reservation
No.6 in the Schedule of theInterchange Association in Annex II)

Sub-Sector:
Industry
Classification:

JSIC 01

Agriculture

JSIC 02

Forestry

JSIC 03

Fisheries, except
aquaculture

JSIC 04

Aquaculture

JSIC 6324

Agricultural
cooperatives

JSIC 6325

Fishery and fisheryprocessing cooperatives

JSIC 871

Agriculture, forestry
and fisheries
cooperative
associations, n.e.c.

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in agriculture, forestry
and fisheries, and related services(except fisheries within the
territorial sea, internal waters,
exclusive economic zone andcontinental shelf provided for in
the entry No. 6 in the Schedule ofthe Interchange Association in
Annex II) in Japan.

12

Sector:

Security Guard Services

Sub-Sector:
Industry
Classification:

JSIC 9231

Guard services

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign Trade
Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261 of
1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in security guard
services in Japan.

13

Sector:Transport

Sub-Sector:

Air Transport

Industry
Classification:

JSIC 4600

Head offices primarily
engaged in managerial
operations

JSIC 4611

Air transport

Provisions
Concerned:

Article 3
Article 4
Article 7

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261 of
1980), Article 3
Civil Aeronautics Law (Law No. 231
of 1952), Chapters 7 and 8

Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments in airtransport business in Japan.
2.
Permission of the Minister ofLand, Infrastructure, Transport andTourism for conducting air transportbusiness as a Japanese air carrier
is not granted to the following
natural persons or entities applying
for the permission:(a)a natural person who does nothave Japanese nationality;(b)a foreign country or region, ora foreign public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws of
any foreign country or region;
and

(d)

a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which more than one-third of
the members of the board of
directors are composed of thenatural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which more than onethird of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

In the event an air carrier falls
into a natural person or an entity
referred to in subparagraphs (a)through (d), the permission willlose its effect. The conditions forthe permission also apply tocompanies, such as holding
companies, which have substantial
control over the air carriers.
3.
A Japanese air carrier or acompany having substantial control
over such air carrier, such as aholding company, may reject therequest from a natural person or anentity set forth in subparagraphs2(a) through (c), who owns equity
investments in such air carrier orcompany, to enter its name andaddress in the register ofshareholders, in the event such air
carrier or company falls into alegal person referred to in
subparagraph 2(d) by accepting such
request.
4.
Foreign air carriers are
required to obtain permission of the
Minister of Land, Infrastructure,
Transport and Tourism to conduct
international air transportbusiness.

5.
Permission of the Minister ofLand, Infrastructure, Transport andTourism is required for the use offoreign aircraft for airtransportation of passengers or
cargoes to and from Japan for
remuneration.
6.
A foreign aircraft may not be
used for a flight between points
within Japan.

14

Sector:Transport

Sub-Sector:

Air Transport

Industry
Classification:

JSIC 4600

Head offices primarily
engaged in managerial
operations

JSIC 4621

Aircraft service,
except air transport

Provisions
Concerned:

Article 3
Article 7

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign Trade
Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Civil Aeronautics Law (Law No. 231 of
1952), Chapters 7 and 8

Description:

1.
The prior notification
requirement under the Foreign
Exchange and Foreign Trade Law
applies to foreign investors who
intend to make investments in aerial
work business in Japan.
2.
Permission of the Minister ofLand, Infrastructure, Transport andTourism for conducting aerial workbusiness is not granted to thefollowing natural persons or entities
applying for the permission:(a)a natural person who does nothave Japanese nationality;(b)a foreign country or region, ora foreign public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws of
any foreign country or region;
and

(d)

a legal person represented by
the natural persons or entities
referred to in subparagraph (a),(b) or (c); a legal person ofwhich more than one-third of themembers of the board of
directors are composed of thenatural persons or entities
referred to in subparagraph (a),(b) or (c); or a legal person ofwhich more than one-third of thevoting rights are held by thenatural persons or entities
referred to in subparagraph (a),(b) or (c).

In the event a person conducting
aerial work business falls into anatural person or an entity referred
to in subparagraphs (a) through (d),the permission will lose its effect.
The conditions for the permission
also apply to companies, such as
holding companies, which havesubstantial control over the person
conducting aerial work business.
3.
A foreign aircraft may not be
used for a flight between points
within Japan.

15

Sector:Transport

Sub-Sector:

Air Transport (Registration of
Aircraft in the National Register)Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Level of
Authority:

Central Authority

Measures:

Civil Aeronautics Law (Law No. 231
of 1952), Chapter 2

Description:

1.
An aircraft owned by any of
the following natural persons or
entities may not be registered in
the national register:(a)a natural person who does nothave Japanese nationality;(b)a foreign country or region, ora foreign public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws of
any foreign country or region;
and

(d)

a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which more than one-third of
the members of the board of
directors are composed of thenatural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which more than onethird of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

2.
A foreign aircraft may not beregistered in the national register.

16

Sector:Transport

Sub-Sector:

Freight Forwarding Business(excluding freight forwarding
business using air transportation)

Industry
Classification:

JSIC 4441

Collect-and-deliver
freight transport

JSIC 4821

Deliver freighttransport, except
collect-and-deliver
freight transport

Provisions
Concerned:

Article 3
Article 4
Article 7

Level of
Authority:

Central Authority

Measures:

Freight Forwarding Business Law(Law No. 82 of 1989), Chapters 2
through 4
Enforcement Regulation of Freight
Forwarding Business Law (Ministerial
Ordinance of the Ministry ofTransport No. 20 of 1990)

Description:

The following natural persons or
entities are required to beregistered with, or to obtain
permission or approval of, theMinister of Land, Infrastructure,
Transport and Tourism for conducting
freight forwarding business using
international shipping. Suchregistration shall be made, or suchpermission or approval shall be
granted, on the basis ofreciprocity:(a)a natural person who does nothave Japanese nationality;(b)a foreign country or region, ora foreign public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws of
any foreign country or region;
and

(d)

a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which more than one-third of
the members of the board of
directors are composed of thenatural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which more than onethird of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

17Sector:Transport

Sub-Sector:

Freight Forwarding Business (onlyfreight forwarding business using
air transportation)

Industry
Classification:

JSIC 4441

Collect-and-deliver
freight transport

JSIC 4821

Deliver freighttransport, except
collect-and-deliver
freight transport

Provisions
Concerned:

Article 3
Article 4
Article 7

Level of
Authority:

Central Authority

Measures:

Freight Forwarding Business Law(Law No. 82 of 1989), Chapters 2
through 4
Enforcement Regulation of Freight
Forwarding Business Law (Ministerial
Ordinance of the Ministry ofTransport No. 20 of 1990)

Description:

1.
The following natural persons
or entities may not conduct freight
forwarding business using airtransportation between points within
Japan:(a)a natural person who does nothave Japanese nationality;(b)a foreign country or region, or
foreign public entity or its
equivalent;(c)a legal person or other entity
constituted under the laws of
any foreign country or region;
and

(d)

a legal person represented by
the natural persons or entities
referred to in subparagraph(a), (b) or (c); a legal personof which more than one-third of
the members of the board of
directors are composed of thenatural persons or entities
referred to in subparagraph(a), (b) or (c); or a legal
person of which more than onethird of the voting rights areheld by the natural persons or
entities referred to in
subparagraph (a), (b) or (c).

2.
The natural persons or entities
referred to in subparagraphs 1(a)through (d) are required to beregistered with, or to obtain
permission or approval of, theMinister of Land, Infrastructure,
Transport and Tourism for conducting
freight forwarding business using
international air transportation.
Such registration shall be made, orsuch permission or approval shall be
granted, on the basis ofreciprocity.

18

Sector:Transport

Sub-Sector:

Railway Transport

Industry
Classification:

JSIC 421

Railway transport

JSIC 4851

Railway facilities
services

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in railway transportindustry in Japan. The manufactureof vehicles, parts and components
for the railway transport industry
is not included in railway transportindustry. Therefore, priornotification under the Foreign
Exchange and Foreign Trade Law is
not required for the investments inthe manufacture of these products.

19

Sector:Transport

Sub-Sector:

Road Passenger Transport

Industry
Classification:

JSIC 4311

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27

Common omnibus
operators

Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in omnibus industry inJapan. The manufacture of vehicles,
parts and components for omnibus
industry is not included in omnibus
industry. Therefore, priornotification under the Foreign
Exchange and Foreign Trade Law is
not required for the investments inthe manufacture of these products.

20

Sector:Transport

Sub-Sector:

Water Transport

Industry
Classification:

JSIC 452

Coastwise transport

JSIC 453

Inland water transport

JSIC 4542

Coastwise ship leasing

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in water transportindustry in Japan. For greatercertainty, “water transportindustry” refers to oceangoing/
seagoing transport, coastwisetransport (i.e. maritime transport
between ports within Japan), inland
water transport and ship leasing
industry. However, oceangoing/
seagoing transport industry and shipleasing industry excluding coastwise
ship leasing industry are exemptedfrom the prior notification
requirement.

21

Sector:Transport

Sub-Sector:

Water Transport

Industry
Classification:
Provisions
Concerned:

Article 3
Article 4

Level of
Authority:

Central Authority

Measures:

Ship Law (Law No. 46 of 1899),
Article 3

Description:

Unless otherwise specified in thelaws and regulations of Japan, orinternational agreements to which
Japan is a party, ships not flying
the Japanese flag are prohibited fromentering Japanese ports which are notopen to foreign commerce and fromcarrying cargoes or passengers
between Japanese ports.

22

Sector:

Water Supply and Waterworks

Sub-Sector:
Industry
Classification:

JSIC 3611

Water for end users,
except industrial users

Provisions
Concerned:

Article 3

Level of
Authority:

Central Authority

Measures:

Foreign Exchange and Foreign Trade
Law (Law No. 228 of 1949), Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3

Description:

The prior notification requirement
under the Foreign Exchange andForeign Trade Law applies to foreign
investors who intend to makeinvestments in water supply andwaterworks industry in Japan.

(The Interchange Association may modify or rectify thisdraft Annex before the conclusion of the negotiations.)
Annex II
Schedule of the Interchange Association
Reservations for Measures referred toin paragraph 2 of Article 8
1.
This Schedule sets out with respect to theInterchange Association, pursuant to paragraph 2 of Article
8, the reservations made by the Interchange Association
with respect to specific sectors, sub-sectors or activities
for which the existing measures may be maintained, or new
or more restrictive measures may be adopted that do notconform with the following provisions of this Arrangement:

2.

(a)

Article 3;(b)

Article 4; or(c)Article 7.

Each schedule entry sets out the following elements:(a)“Sector” refers to the general sector for which
the entry is made;(b)“Sub-Sector” refers to the specific sector forwhich the entry is made;(c)“Industry Classification” refers, whereapplicable, and only for transparency purposes,to the activities covered by the entry according
to the relevant industry classification codes. In
this regard, “JSIC” means Japan Standard
Industrial Classification set out by the Ministryof Internal Affairs and Communications, andrevised on November 6, 2007;(d)“Provisions Concerned” specifies the provisions
referred to in paragraph 1 for which the entry is
made;

(e)

“Description” illustrates the scope of thesector, sub-sector or activities covered by theentry; and(f)“Existing Measures” identifies, for transparency
purposes, existing measures that apply to thesector, sub-sector or activities covered by theentry.
3.
In the interpretation of each entry, all elements ofthe entry shall be considered. The “Description” element
shall prevail over all the other elements.
4.
For the purposes of this schedule, when the term
“foreign” is employed, it refers to something belonging toor coming from, or to characteristics of, other country or
region than Japan.

1Sector:All Sectors

Sub-Sector:
Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Description:

Existing
Measures:

When transferring or disposing of
the equity interests in, or theassets of, a state enterprise or agovernmental entity,(a)the ownership of such interests
or assets by investors of the
Taiwanese Side or theirinvestments may be prohibitedor restricted;(b)

the ability of investors of the
Taiwanese Side or theirinvestments as owners of suchinterests or assets to control
any resulting enterprise may be
restricted; or(c)any measure relating to thenationality of executives,
managers or members of theboard of directors of any
resulting enterprise may be
adopted or maintained.

2

Sector:All Sectors

Sub-Sector:
Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Description:

Existing
Measures:In the event where the supply oftelegraph services, postal services
and betting and gambling services,manufacture of tobacco products,
manufacture of Bank of Japan notes,
minting and sale of coinage inJapan, which are restricted todesignated enterprises orgovernmental entities, areliberalized to those other than thedesignated enterprises orgovernmental entities, or in theevent where such designatedenterprises or governmental entities
no longer operate on a noncommercial basis, any measure
relating to those activities may be
adopted or maintained.

3

Sector:Aerospace Industry

Sub-Sector:

Aircraft Industry
Space Industry

Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Description:

Any measure relating to investment
in aircraft industry and spaceindustry may be adopted or
maintained.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27 and 30
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 and 5

4

Sector:Arms and Explosives Industry

Sub-Sector:

Arms Industry
Explosives Manufacturing Industry

Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Description:

Any measure relating to investment
in arms industry and explosives
manufacturing industry may be
adopted or maintained.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Articles 27 and 30
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 and 5

5

Sector:EnergySub-Sector:

Electricity Utility Industry
Gas Utility Industry
Nuclear Energy Industry

Industry
Classification:
Provisions
Concerned:

Article 3
Article 7

Description:

Any measure relating to investmentin the energy industry listed in the“Sub-Sector” element may be adopted
or maintained.

Existing
Measures:

Foreign Exchange and Foreign Trade
Law (Law No. 228 of 1949), Articles
27 and 30
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Articles 3 and 5

6

Sector:Fisheries

Sub-Sector:

Fisheries within the TerritorialSea, Internal Waters, Exclusive
Economic Zone and Continental Shelf

Industry
Classification:

JSIC 031

Marine fisheries

JSIC 032

Inland water fisheries

JSIC 041

Marine aquaculture

JSIC 042

Inland wateraquaculture

JSIC 8093

Recreational fishingguide business

Provisions
Concerned:

Article 3
Article 4
Article 7

Description:

Any measure relating to investment
in fisheries in the territorial sea,internal waters, exclusive economic
zone and continental shelf of Japan
may be adopted or maintained.
For the purposes of this entry, theterm “fisheries” means the work oftaking and cultivation of aquatic
resources, including the following
fisheries related activities:(a)investigation of aquatic
resources without taking such
resources;(b)luring of aquatic resources;(c)preservation and processing offish catches;(d)transportation of fish catches
and fish products; and(e)Existing
Measures:provision of supplies to othervessels used for fisheries.

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Law for Regulation of Fishing
Operation by Foreign Nationals (Law
No. 60 of 1967), Articles 3, 4 and 6
Law concerning the Exercise ofSovereign Rights concerning
Fisheries in the Exclusive Economic
Zones (Law No. 76 of 1996), Articles
4, 5, 7, 8, 9, 10, 11, 12 and 14

7

Sector:Information and Communications

Sub-Sector:

Broadcasting Industry

Industry
Classification:

JSIC 380

Establishments engaged
in administrative or
ancillary economic
activities

JSIC 381

Public broadcasting,
except cablecasting

JSIC 382

Private-sector
broadcasting, except
cablecasting

JSIC 383

Cablecasting

Provisions
Concerned:

Article 3
Article 7

Description:

Any measure relating to investment
in broadcasting industry may be
adopted or maintained.

Existing
Measures:

Foreign Exchange and Foreign
Trade Law (Law No. 228 of 1949),
Article 27
Cabinet Order on Foreign Direct
Investment (Cabinet Order No. 261
of 1980), Article 3
Radio Law (Law No. 131 of 1950),
Article 5
Broadcast Law (Law No. 132 of 1950),
Articles 93, 116, 125, 159 and 161.

8

Sector:Land Transaction

Sub-Sector:
Industry
Classification:
Provisions
Concerned:

Article 3
Article 4

Description:

With respect to the acquisition orlease of land properties in Japan,
prohibitions or restrictions may be
imposed by Cabinet Order on foreign
nationals, citizens or legal
persons, where Japanese nationals or
legal persons are placed underidentical or similar prohibitions or
restrictions in the foreign country
or region.

Existing
Measures:

Alien Land Law (Law No. 42 of 1925),
Article 1

9Sector:Public Law Enforcement andCorrectional Services and Social
Services

Sub-Sector:
Industry
Classification:
Provisions
Concerned:

Article 3
Article 4
Article 7

Description:

Existing
Measures:Any measure relating to investment
in public law enforcement andcorrectional services, and in social
services such as income security or
insurance, social security or
insurance, social welfare, primaryand secondary education, publictraining, health and child care, may
be adopted or maintained.