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(Provisional Translation)

Follow-up on the Recommendations on Market Access Issues by the Market Access Ombudsman Council

May 12, 1997
Secretariat of the OTO

The following is a report on policy actions taken by the government in response to the "Recommendations on Market Access Issues Concerning Standards, Certifications and Others" by the Market Access Ombudsman Council, dated March 18, 1996.


1. Animals and Plants, Foods

1-(1) Dispatching Plant Quarantine Inspectors to Control the Vapor Heat Treatment of Fresh Fruits before Being Shipped to Japan
1-(2) Partial Revision of JAS concerning Imported Fruit Juices
1-(3) Review of Designation System for Animal Feed Additives
1-(4) International Harmonization for Veterinary Drug Residue Standards in Edible Meats

2. Drugs, Medical Devices, Cosmetics

2-(1) Clarifying the Definition of "Dietary Supplements" and Deregulating Their Restrictions
2-(2) Deregulation and Simplification of Cosmetic Regulations

3. Manufacturing

3-(1) Simplification of Prior Confirmation Procedure for Fabrics of Silk and Other Fiber
3-(2) International Harmonization of Approval for Hi h-Pressure Containers
3-(3) Mutual Recognition of Electric Machines with Explosion-Proof Construction

4. Transportation and Traffic

4-(1) Facilitating Imports of Camping Trailers and Motorhomes
4-(2) Revision of Import Inspection System for Vessels, Vessel Engines and Propulsion Devices, etc.

5. Construction

5-(1) Relaxing Regulations of Imported Housing Materials
5-(2) Improvement of Procedures of Foreign Construction Materials Quality Assessment and Verification System

6. Employment and Labour

6-(1) Review of Worker Dispatching Undertakings
6-(2) Review of Employment Placement Projects
6-(3) Revision of the Criteria of the Examination for Landing in Japan and Other regulations

7. Import Procedures

7-(1) Introduction of the Nationwide Common Bond for the Release of Imported Goods before (Formal) Permit
7-(2) Introduction of Pre-Filing System
7-(3) Simplification of Import Procedures concerning Generalized System of Preferences Certificate of Origin


1. Animals and Plants, Foods

1-(1) Dispatching Plant Quarantine Inspectors to Control the Vapor Heat Treatment of Fresh Fruits before Being Shipped to Japan

1. Complainant:Thai Embassy

2. Ministry concerned:Ministry of Agriculture, Forestry and Fisheries

3. Results of deliberation:

Even though the number of vapor heat treatment (VHT) processing facilities mangoes in Thailand may be increased, Japanese plant quarantine inspectors will be dispatched and the following measures will be taken:

(1) The two sides should confirm the facts regarding failures to satisfy the designated standards.

(2) The two sides should promptly discuss the feasibility of abolishing a Japanese plant quarantine inspector's checking the VHT and the conditions therefore (e.g. use of appropriate facilities and trained technicians).

(3) Regarding expenses, even if it should be decided to continue dispatching inspectors, the two sides should promptly discuss the feasibility and measures for reducing the burden on the Thai side by simplifying procedures, for example, by shortening the overall duration of the inspector's stay in Thailand.

4. Actions taken:

The following measures were agreed to at a meeting of agricultural experts at the Japan-Thailand Economic Council on April 26, 1996:

(1) Failures to satisfy designated standards did occur, but this was basically in connection with the execution of important technical measures, specifically, improper adjustment of the temperature sensors and improper closure of vents in the facility.

(2) Because the Thai side acknowledged that they did have problems maintaining the VHT facility, they agreed to the necessity of dispatching Japanese plant quarantine inspectors.

(3) Regarding the issue of expenses, Thailand and Japan will work more closely to lighten the burden on the Thai side by shortening the overall duration of the inspector's stay in Thailand.


1-(2) Partial Revision of JAS concerning Imported Fruit Juices

1. Complainant:Japan Foreign Trade Council

2. Ministry concerned:Ministry of Agriculture, Forestry and Fisheries

3. Results of deliberation:

(1) The ministry concerned began deliberation on the revision of JAS for fruit juices in November 1995 and will make a specific proposal within FY1996. The ministry concerned claims that it will consider not only actual conditions pertaining to fruit juices imported, but also international standards to develop more general standards (not standards according to producing places). The ministry also should take initiative in collecting foreign data as many as possible instead of taking specific request into account and waiting for samples and data to be submitted.

(2) Since acidity for orange juice and amino nitrogen and ash content for grape juice are not stipulated in the international standards, efforts should be made to reach a conclusion on the necessity of stipulating these standards in JAS for fruit juice as early as possible.

4. Actions taken:

(1) The ministry's proposal concerning revision of JAS for fruit juices was approved by the technical sub-committee of the Agricultural Commodity Standard Investigation Committee (JAS Investigation Committee) on March 21, 1997. The proposed revisions were made on the basis of quality data from major fruit juice producing countries like the U.S. and Brazil, and aligned with the Codex international food standards. The revisions are scheduled to be implemented by the end of FY1997, after approval by the consumer sub-committee and the foodstuffs committee of the JAS Investigation Committee, prior notice and publication in the Official Gazette.

(2) In this revision, the quality standards relating to acidity in orange juice (acidity standards are stipulated for concentrated orange juice only) and to amino nitrogen and ash content in grape juice, not stipulated in the Codex, have been removed, and are now based mainly on BRIX (sugar and other soluble solids).


1-(3) Review of Designation System for Animal Feed Additives

1. Complainant:Japan Foreign Trade Council

2. Ministry concerned:Ministry of Agriculture, Forestry and Fisheries

3. Results of deliberation:

Regarding the simplification of domestic testing of feed additives by accepting foreign data and so on for their field effectiveness, the Agricultural Materials Council should compile results of deliberation during FY1996 and respond appropriately.

4. Actions taken:

After deliberation by the safety sub-committee of the feed committee in the Agricultural Materials Council, the committee replied at its 18th meeting on February 5, 1997, that the guidelines ("On the Establishment of Standards for Evaluation of Feed Additives") would be reviewed based on revision of the OECD Committee's "OECD Rules on Chemical GLP (measures guaranteeing the reliability of test results on the safety and toxicity of chemical substances).

After deliberation by the Committee and its recommendations, the guidelines (directive issued jointly by the heads of the Livestock Industry Bureau and of the Fisheries Agency) will be revised promptly during FY1997.


1-(4) International Harmonization for Veterinary Drug Residue Standards in Edible Meats

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Health and Welfare

3. Results of deliberation:

(1) Regarding international standards which have already been established, the deliberation schedule at the Food Safety Council for Maximum Residue Limit (MRL) should be clarified, and harmonization with international standards carry out as soon as possible. In that case, the ministry concerned should clarify and announce which veterinary drugs it plans to set MRL for and when these standards will be established.

In addition, when the standard setting work of the international organization has progressed to a certain stage, Japan should also begin to prepare for establishing MRL for veterinary drugs and establish standards as soon as possible.

(2) For veterinary drugs for which no international standards have been set, the ministry concerned should collect data and consult the Food Safety Council, including regarding the feasibility of accepting the standards used in the U.S. and the EU, and set domestic MRL at an early date.

In addition, for substances for which there is a great need to establish MRL, the ministry should contribute to the establishment of international standards by submitting data on safety to the international organization concerned.

(3) The ministry should further expedite the deliberations by the Food Safety Council on the establishment of MRL for veterinary drugs in food products.

(4) In establishing MRL for each veterinary drug, the ministry should prepare a priority list based on requests from within Japan and abroad, including information on when standards will be established, and make this list public during FY1996.

4. Actions taken:

(1) There are 12 substances for which the Codex Alimentarius Commission has recommended that international standards (Codex standards) for MRL in food products be established. In addition to oxytetracycline and five other substances for which standards have already be established in Japan (December 1995, implemented July 1996), standards for sulfadimitine and four other substances will be set in March 1997 (scheduled to be implemented in October 1997).

(2) Regarding Japan's contribution by collecting data on safety and helping establish international standards for substances for which there is a great need to establish MRL, Japanese committee members will continue to collect a broad range of data and provide information on safety to the Joint FAO/WHO Expert Committee for Food Additives (JECFA) which evaluates toxicity.

(3) Where establishment of MRL for veterinary drugs in food products is concerned, the work of the Food Safety Council will be streamlined and deliberations will be expedited by having sub-committees conduct specialized evaluations (on toxicity and drug tolerance).

(4) A priority list for the establishment of MRL for individual veterinary drugs was released in March 1997. It listed five substances, including moxydectin, for which the establishment of standards will be deliberated immediately, and others (azaperone and 13 others) for which the establishment of standards will be deliberated, after providing of the necessary data.


2. Drugs, Medical Devices, Cosmetics

2-(1) Clarifying the Definition of "Dietary Supplements" and Deregulating Their Restrictions

1. Complainant:American Chamber of Commerce in Japan, Japan Foreign Trade Council, Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Health and Welfare

3. Results of deliberation:

Over the medium and long term, as for the classification of drugs and food products, the ministry concerned should consider easing restrictions on food product raw materials and their ingredients and establish a new category for dietary supplements.

Regulation of shape (dosage form) should be abolished or substantially eased if appropriate indication as a food product (dietary supplement) is established, with enabling consumers to choose correctly without confusion.

Restrictions on indication should be relaxed, with priority given to consumers' interests. Because food products require appropriate labeling on method of ingestion, dietary supplement claims, precautions, etc., labeling should enable consumers to appropriately select the product they require. Products which are normally distributed and sold abroad as food products should not be regulated as drugs, and in order to allow this, current regulations on shape (dosage form) and labeling restrictions for vitamins will be eased in FY1996 and on herbs in FY1997. For products other than vitamins and herbs, similar measures will be taken thereafter from FY1998, beginning with minerals.

4. Actions taken:

In March 1997, the concerned ministry began a ministry-wide deliberation of classification methods for drugs and food products, in order to respond to the establishment of a new category of dietary supplements. Individual product categories will be handled as follows:

(1) Vitamins

Seven types of vitamins, including vitamin A and B1, which it is widely accepted in Japan are ingested from foods, will clearly be labeled as "food" for the time being, and products which do not claim any pharmaceutical effects will not be considered as drugs, regardless of shape (capsules, tablets, etc.) (Directive of March 1997 from the Director of the Pharmaceutical Affairs Bureau, Ministry of Health and Welfare).
Vitamin B6 and five other vitamins mentioned in the same directive will be handled similarly, as long as daily dosage falls below a certain amount. Regarding restrictions on labeling, products requiring labeling to describe timing and dosage, precautions, etc. which are needed to ensure consumer safety will not be banned uniformly but a decision will be made in each case, unless the product's effects and benefits can readily be imagined.

(2) Herbs and minerals

Regarding approval for changing the classification of some herbal ingredients from drugs to foods and allowing the distribution of some minerals in shapes similar to drugs (capsules, etc.) as foods, document research was begun in January 1997. After study by experts, the classification of herbs as foods will be implemented in FY1997 and of minerals in FY1998.


2-(2) Deregulation and Simplification of Cosmetic Regulations

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Health and Welfare

3. Results of deliberation:

An overall review of comprehensive licensing standards (CLS) will be undertaken in FY1996, including to ensure international harmonization, and the measures concerning the following points will be implemented:

(1) Modification of CLS should be promoted from the perspective of international harmonization, and ingredients which are used in the U.S. and EU countries should be incorporated into CLS, referring to the regulations in those countries. Furthermore, to eliminate the need for approval on import of a cosmetic whose ingredients are the same as those of an approved cosmetic, the specifications for ingredients outside CLS should be established based on data submitted during the approval procedure and promptly included in CLS.

(2) The system of licensing an importer for each office, including the necessity of employing a technician responsible for technical matters, should be reviewed during FY1996 and the required improvement measures taken promptly.

(3) The procedures for import product declarations submitted when actually importing a product should be reviewed during FY1996 and measures taken to reduce the burden on applicants imposed by this requirement.

4. Actions taken:

The ministry established a Study Group on Regulations Concerning Cosmetics in December 1996, to study deregulation of cosmetics and international harmonization, with the greatest emphasis placed on consumer safety. An interim report was produced in March 1997, and after working groups have studied individual issues, a final report will be compiled during FY1997.

(1) Taking into consideration ingredients used in the United States and the EU, about 140 new ingredients were added to the CLS (August 1996), and the existing 25 categories were consolidated into 11 categories (March 1997).
And, following FY1997, further ingredients will be added once a year. Selection of the ingredients to be added began in May 1997 and will be announced by the end of March 1998, after standards have been established.

(2) In its interim report, the Study Group on Regulations Concerning Cosmetics stated that qualification requirements for technicians on duty would be streamlined and that wider use of outside testing facilities would be allowed.

(3) Regarding the contents of the imported product declaration, it will now be possible to list ingredients and quantities which conform to CLS using the words "appropriate amount" rather than specific percentages, to lessen the burden on applicants. (Directive of March 1996 from the Director-General of the Pharmaceuticals and Cosmetics Division, Ministry of Health and Welfare).


3. Manufacturing

3-(1) Simplification of Prior Confirmation Procedure for Fabrics of Silk and Other Fiber

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of International Trade and Industry

3. Results of deliberation:

(1) The ministry concerned plans to begin accepting applications for prior confirmation for fabrics of silk and other fiber, silk bed linens, etc., via its regional bureaus from April 1996, in order to reduce the burden on applicants.

(2) Regarding simplification of the information required in the application forms for prior confirmation, more flexible handling will be made on a case-by-case basis, and relevant parties' applicants will be informed of this. Continual review will also be conducted to simplify other application procedures.

4. Actions taken:

(1) Import Notice 55 No. 26 (directive from the head of the International Trade Administration Bureau) was amended on March 25, 1996, enabling MITI's regional bureaus to accept applications under the prior confirmation system for fabrics of silk and other fibers, silk bed linens, etc.

(2) From March 25, 1996, the information required on applications for prior confirmation has been simplified. Officers handling applications have been notified verbally that some flexibility will be introduced on a case-by-case basis, with applicants exempted from providing some particulars if photographs presented make it possible to ascertain whether the product is in fact that mentioned in the application.


3-(2) International Harmonization of Approval for High-Pressure Containers

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of International Trade and Industry

3. Results of deliberation:

In order to simplify procedures for changing high-pressure gas types, the ministry concerned will add gas types to enable the storage of several gas types in the same container during FY1996. It will also study safety factors involved in grouping gases to enable replacement of multiple gases without a special filling permit, from the physical and chemical viewpoints, and will implement measures with in about the next three or four years.

4. Actions taken:

The gases covered under special filling permits for replacing multiple gases in the same container were reviewed. As of March 31, 1997, the "Handling of Containers When Filling With Liquid Fluorocarbon" (directive from the head of the Environmental Protection and Industrial Location Bureau dated August 1, 1966) was revised, new groups (composed of liquid fluorocarbons 502, 22, 115, 00, 134a, and 12) were added, and procedures were simplified to permit filling at higher pressure than currently allowed.

Additionally, measures will be taken by April 1998 to group gases to allow filling of multiple gases, including gases other than those mentioned above, without a special filling permit and without changing the name of the gas indicated on the container.


3-(3) Mutual Recognition of Electric Machines with Explosion-Proof Construction

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Labour

3. Results of deliberation:

The following revisions will be undertaken, from the perspective of harmonizing Japan's standards and certification system with international standards:

(1) Products which meet IEC standards or foreign standards which harmonize with IEC standards, as certified by foreign governments or foreign-government recognized inspection institutions, will be handled promptly in an identical manner to those which conform to Japanese type inspection standards. If the details or interpretation of the standards differ between Japan and overseas, they should be standardized as soon as possible.

(2) Concerning products which do not have the above certification, the ministry will make an effort to publicize the designated foreign inspection institution system, and actively designate those institutions which many importers have requested be designated as such, the ministry will actively encourage the acceptance of foreign inspection data.

(3) The ministry will actively research and study mutual certification of standards other than IEC standards and take the necessary measures to institute this system with in about the next five years.

4. Actions taken:

(1) A study committee on the inspection system for explosion-proof electric machines (hereafter, "the committee") composed of scholars and technical experts was established in April 1996, with a view to promptly handling explosion-proof electrical machines manufactured in conformity with IEC standards in an identical manner to those which conform to Japanese type inspection standards. The committee has begun its studies and has already conducted technical studies through the Technical Institution of Industrial Safety concerning inspection and inspection institutions in Spain, Germany and South Korea and held discussions with staff from foreign testing and inspection organizations.

(2) Verification of foreign data prepared by foreign inspection institutions for type inspection will exempt the actual machine test from inspection. In addition to the British inspection institution, a German inspection institution was also designated in April 1996, and the prefectural Labour Standards Offices were notified of this. This information will also be carried in the journal of he Industrial Safety Technology Association, which carries out type inspection of explosion-proof electrical machines, and in the public relations journals of organizations for the prevention of work accidents.

(3) The committee will continue its technical study of standards other than IEC standards, and based on the results of its study, will analyze and study problems related to implementing the mutual recognition system for standards other than IEC standards.


4. Transportation and Traffic

4-(1) Facilitating Imports of Camping Trailers and Motorhomes

1. Complainant:U.S. Embassy

RVIA (Recreational Vehicle Industry Association)

RPITA (Recreational Trailer Park Industry Association)

2. Ministry concerned:Ministry of Transport, Ministry of Construction

3. Results of deliberation:

(1) The Ministry of Construction states that camping trailers used for camping at camp grounds and those which can be moved on roads at any time, like motorhomes, will not generally be subject to the Building Standards Law, and will make an effort to inform concerned parties of this.

(2) The Ministry of Transport, the Ministry of Construction, and other relevant ministries ("the relevant ministries," hereafter) should study and conclude within one year or so on how to prepare new specifications and standards for camping trailers, i.e. whether new specifications and standards should be established within the current legal framework or whether a new law (including amendments to existing laws) should be enacted. To this end, the relevant ministries should, with the cooperation of the complainants, study how foreign camping trailers might violate existing laws when used as originally intended, at a camp site, without any modification to their structure, and if they do violate existing laws, how to deal with this by amending existing laws or applications. Specifically, the relevant ministries should promptly study the specifications for camping trailers and U.S. regulations submitted by the complainants (in particular, those believed to violate current Japanese regulations) and compare them with current Japanese laws.

The Market Access Ombudsman Council plans to seek reports from the relevant ministries and study the case if necessary.

4. Actions taken:

(1) The Ministry of Construction took steps to inform concerned parties that camping trailers which may voluntarily be moved at any time, judging from conditions such as their size, form and method of installation, should be handled as not being subject to the Building Standards Law in its circular on "Handling of camping trailers under the Building Standards Law"(circular issued March 31, 1997 by the Director of the Building Guidance Division Housing Bureau, Ministry of Construction).

(2) In August 1996, the Secretariat of the OTO prepared a Japanese translation of American National Standards Institute (ANSI) standards relating to camping trailers which had been provided by the complainants, which the relevant ministries studied in order to determine whether there were any problems in the light of existing Japanese laws. With the relevant ministries attending, the Secretariat of the OTO held a meeting on camping trailers in October 1996, with the complainants present to explain to meeting participants how camping trailers are used in the United States. The complainants have continued to collect information on specifications for camping trailers and regulations pertaining to them in the U.S., to supplement the ANSI standards and information provided during the meeting. Based on this additional information, the relevant ministries will promptly study how camping trailers may be accommodated in the future under existing Japanese laws.

Because of misunderstandings on the part of some participants concerning the interpretation of structural standards for camping trailers, etc. formulated by the Japan Automobile Manufacturers' Association and the Japan Auto-Body Industries Association, they were contacted by letter for correcting their misunderstanding by the Ministry of Transport in January 1997.


4-(2) Revision of Import Inspection System for Vessels, Vessel Engines and Propulsion Devices, etc.

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Transport

3. Results of deliberation:

The ministry should take positive steps on the following points pertaining to pleasure boats and small vessel engines, etc.:

(1) The ministry concerned should contribute to the development of ISO standards for pleasure boats and when such standards are established, should promptly harmonize domestic standards with ISO standards. Furthermore, based on trends in the EU, the United States and other major industrialized countries, the ministry should consider accepting the inspection standards in use in those countries, if there are no particular problems with them, and allowing the use of pleasure boats in Japan with only an examination of documents such as certification of conformance in the country of origin and a physical inspection of the boat, and reach a conclusion on this by the end of FY1998.

(2) In order to promote acceptance of testing data from foreign testing institutions, the ministry concerned should actively discuss inspection methods with the institutions from which no testing data is currently accepted, and make efforts to reduce the burden on applicants. As for testing data from principal classification societies, the ministry concerned should promptly consider accepting data that would not hinder safety and reach a conclusion by the end of FY1998, confirming the effectiveness of the "Guidelines for the authorization of organizations on behalf of the flag country" which became effective in January 1996.

(3) The ministry will make further efforts to inform foreign companies of the type approval system and the factory authorization system and to improve them. For example, where the factory authorization system is concerned, the ministry should reach a conclusion by the end of FY1997 on policies concerning authorization of factories using the ISO 9000 series. In addition, a vigorous effort should be made to reduce the number of inspection particulars and simplify inspection procedures, taking into consideration progress made in technology.

4. Actions taken:

(1) To contribute to the establishment of ISO technical standards for pleasure boats, the ministry of transport concerned, together with a committee established within the Japan Small Vessel Testing Association for investigation and testing, attended ISO meetings and reported results of their investigations and tests. The ISO is currently creating a draft proposal on main pleasure boat safety standards like righting and structure, but they have not yet been adopted. The committee will continue its investigations and by participating in meetings held by the ISO, will contribute to the establishment of ISO technical standards. In addition, in the event that international standards are adopted, domestic standards will be promptly harmonized with these.

Furthermore, based on trends in the EU, the United States and other major industrialized countries, the ministry concerned should consider accepting the inspection standards in use in those countries, if there are no particular problems with them, and allowing the use of pleasure boats in Japan with only an examination of documents such as certification of conformance in the country of origin and a physical inspection of the boat.

(2) Since comparison of inspection methods for various types of equipment and apparatus on foreign vessels which have been tested by many different foreign inspection institutions may not necessarily be efficient, the ministry will participate in a study group which will undertake to create an internationally standardized data format used by the International Marine Organization (IMO), in order to lessen the burden on applicants. In the event that a standardized international format for test data is adopted, test data will be accepted and used.

In addition to conducting port state control (PSC) on foreign vessels entering Japanese ports, it was ascertained that information on results of PSC in the Asia-Pacific and European regions would be exchanged and that efforts would be made to ascertain implementation of the "Guidelines for the authorization of organizations on behalf of the flag country." If it is ascertained that there are no risks to safety, after accumulation of such data, the ministry will study accepting test data from classification societies.

(3) The ministry has undertaken various publicity efforts, holding briefing meetings and seminars to facilitate imports of foreign vessels for foreign parties. As a result, type approval was granted in eight cases in FY1996 (accounting for 11% of all approvals in the same fiscal year).

To promote certification using the ISO 9000 series, the ministry is studying the particulars for examination under the factory authorization system and certification using the ISO 9000 series, and will establish a study group for this purpose in June 1997. Based on the group's conclusions, the ministry will reach a conclusion by the end of FY1997 to improve the factory authorization system, by promoting certification using the ISO 9000 series and so on. Further, it was recommended to the Council for Transport Technology in October 1996 that the periodic inspection system be revised, given the progress made in technology and trends concerning international regulation of vessels and with the safety of vessels in mind, in order to reduce the burden on applicants for inspections and improve convenience. The Council recommended in December 1996 that the interval between and the date of periodic inspections should be changed and that the number of inspection particulars should be reduced, and that vessel inspection should be further streamlined. Based on this recommendation, completion inspection for propulsion devices in authorized factories will be streamlined by the end of FY1997, and the interim inspection for propulsion devices and the open inspection for electric motors will be streamlined by the end of the first half of FY1997, and that active measures will be taken to streamline other inspections.


5. Construction

5-(1) Relaxing Regulations of Imported Housing Materials

1. Complainant:Japan Foreign Trade Council, the American Chamber of Commerce in Japan, the Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Construction, Ministry of Health and Welfare

3. Results of deliberation:

(1) Building materials which conform to foreign standards for 2 x 4 construction should be accepted in Japan. The ministry, which is currently discussing with foreign certification bodies, should reach a conclusion as soon as possible and take steps to allow imports of building materials in common use abroad as a package. The ministry should also actively ask and have meetings with foreign organizations and collect information on materials which are in great demand. Regarding building structural standards for wood frame construction, which are prescriptive ones will be revised to performance-based building standards during FY 1996. A third-party certification system will be introduced to certify performance-based building standards.

The ministry will also study measures to inform concerned parties that the structural standards in the Housing Loan Corporation's common specifications for 2 x 4 construction are the same as the standards in the Building Standards Law, and will implement these measures in early FY1997. It will also inform concerned parties that specifications other than the common specifications can be used, and will further clarify that specifications for materials not listed in the common specifications may be modified as long as they do not contravene the Building Standards Law, and in conjunction with the listing of performance-based standards, specifications will be changed to show performance-based standards, beginning with the FY1997 edition.

(2) The Housing Loan Corporation requirement that roofing materials be non-combustible will be abolished in April 1996. This step will allow the use of asphalt roofing materials on houses eligible for Corporation loans without certification by the Minister of Construction, except in quasi-fire protection districts, and the concerned parties will be informed of this. To further encourage acceptance of foreign data regarding fire preventive materials such as for non-combustible materials, the ministry will actively contact the related foreign concerned organizations and promote designation of overseas testing laboratories in order to facilitate the certification procedure in Japan.

(3) In the viewpoint of international harmonization of standards, introduction of the principle of self-responsibility, and to give the private sector more freedom of choice, the ministry plans to replace the current system of mainly prescriptive regulations with, in principle, a system of performance-based regulations which will not discriminate against foreign parties. To this end, the ministry plans to establish a framework for new building regulations in FY1996. The ministry should fully consider the recommendations made above and respond positively even before changes are made.

(4) The ministry will endeavor to have a partial amendment of the Waterworks Law, which includes provisions for the establishment of a chief plumbing technician system and clarification of the requirements for designation as a plumbing contractor, passed at the current session of the Diet (the 136th session).

The current type approval and inspection system for plumbing fixtures will be abolished and the measures described below introduced. The necessary preparations for the changes will be made during FY1996, to be implemented from FY1997.

1) Japanese regulations concerning the structure and materials specifications for plumbing fixtures will be clarified and changed to performance-based standards.
2) In connection with clarification of Japanese standards, use of fixtures which have not undergone either/or type approval and inspection will be allowed, and it will no longer be obligatory to undergo third-party certification.
3) Regarding inspection for third-party certification, inspection of all fixtures under the current type approval system will be greatly streamlined by introducing self-inspection and sampling inspections for inspections conducted by third parties.
4) Mutual certification with foreign certification organizations will be encouraged to promote harmonization with foreign standards.
5) The necessary revisions should be undertaken to allow abolishing duplicated inspections for products which meet Japanese standards, regarding to waterworks operators.

4. Actions taken:

(1) The ministry has discussed with related foreign organizations in the U.S., Canada and other countries to promote mutual recognition on building standards and has taken steps to certify building materials used for wood frame construction which meets foreign standards and to allow imports of building materials for houses in common use abroad as a package. The ministry is actively collecting opinions from foreign organizations and information on foreign standards and certification system. In addition, performance-based standards for technical structural standards of wood frame have been established since March 1997 in revision of the Notification.

The common specifications of the Housing Loan Corporation for FY1996 which are stipulated under the Building Standards Law have been clarified, to make it clear that loan standards for structures in the common specifications are the same as those under the Building Standards Law. Additionally, it has been made clearer that specifications for materials not listed in the common specifications may be modified as long as they do not contravene the Building Standards Law. It has also been made clear that specifications other than the common specifications may be used (May 1996). Specifications will also be changed, in conjunction with the change in the listings (June 1997).

(2) Due to changes in the building standards for houses built using Housing Loan Corporation loans, the requirement for non-combustible roofing materials was abolished (April 1996) and steps were taken to inform the public of this in guides to using Housing Loan Corporation loans.

To smooth certification of fire preventive materials such as non-combustible materials, the ministry has drawn up "Guidelines for acceptance of test results" and "Guidelines for Designating Testing laboratories." Based on these, the ministry has made it possible to accept test results from both Japan and abroad. It is currently contacting concerned organizations in the U.S. and Canada, and other and has accepted test data from Canada and Korea based on the "Guidelines for acceptance of test results" (October and November, 1996).

(3) The ministry will review the regulatory systems of Building Standards Law with a view to replacing prescriptive standards which designates in detail materials specifications, and products standards to be used, with standards which designate required performance and establish a new regulatory framework, based on the reports of the Building Council in March 1997. The ministry will now undertake the work toward reviewing the law and is planning to submit a draft to the regular session of the Diet in FY1998.

(4) The Waterworks Law was changed (in June 1996 and partially implemented) to establish a chief plumbing technician system, clarify requirements for designation as a plumbing contractor, and make uniform provisions nationwide.

The following measures were taken concerning type approval and inspection for plumbing fixtures:

1) Through the passing of a government ordinance (March 1997) changing some provisions for application of the Waterworks Law and of a ministerial ordinance (March 1997) concerning standards for the structure and quality of materials for plumbing fixtures, the standards for the structure and quality of materials for plumbing fixtures was clarified and performance-based standards were established (to be implemented in October 1997).
2) Due to clarification of standards through the passing of a ministerial ordinance and abolition of type approval by the Japan Waterworks Association (JWWA), it will no longer be obligatory to undergo third-party certification.
3) The expert committee on plumbing fixtures of the waterworks subcommittee of the Living Environment Advisory Council ("the expert committee," hereafter) studied specific ways of implementing inspections by third-party certification organizations, including the introduction of a self-inspection system and sampling inspections and issued a report on this (March 1997).

Based on the report's recommendations, guidelines for third-party approval will be established and the concerned parties informed.

4) After studying the standards in use in the United States and other countries and harmonizing Japanese standards with international standards, the ministry issued an ordinance concerning standards for structure and materials quality of plumbing fixtures after notifying the WTO.

A budget was also provided for promoting mutual certification with foreign certification organizations from FY1997.

5) The expert committee's report clearly stated that no duplicated inspections for products meeting Japanese standards should be carried out. This will be made known and this will be further enforced through directives issued in the future.


5-(2) Improvement of Procedures of Foreign Construction Materials Quality Assessment and Verification System

1. Complainant:Korea Foreign Trade Association

2. Ministry concerned:Ministry of Construction

3. Results of deliberation:

The ministry concerned will conduct further study as to whether quality inspection and certification operations for foreign construction materials overlap with ISO 9000 series certification at an early date in FY1996, and will omit inspection of products from companies which have already obtained certification.

The period of validity of quality inspection certificates will be extended from the current one year to three years, and inspection fees will be lowered a maximum of 40%.

4. Actions taken:

After studying overlap in the content of quality inspection and certification operations for foreign construction materials and those for ISO certification, the ministry omitted inspection for manufacturing and quality control items, in the case of factories having obtained ISO 9000 certification.

The period of validity of quality inspection certificates was extended from the current one year to three years, and inspection fees will be lowered a maximum of 40%. This change was implemented on September 27, 1996, under the "Changes to particulars for quality inspection and certificates for foreign construction materials."


6. Employment and Labour

6-(1) Review of Worker Dispatching Undertakings

1. Complainant:French Embassy

2. Ministry concerned:Ministry of Labour

3. Results of deliberation:

(1) The ministry concerned plans to add 12 types of designated works to the current 16 ones permitted to worker dispatching undertakings, and revisions will be conducted appropriately as necessary, including the feasibility of employing a so-called "negative list."

(2) Deregulation of permitted activities, (in addition to simplifying procedures for which provisions are included in the revised legislation draft) related documents such as business plans should also be simplified at an early date. In addition, constructive steps should be taken by the Central Employment Security Deliberative Council in its study concerning fee-charging employment placement projects, as follows: 1) substantially reduce regulation on employment placement projects concurrently running worker dispatching undertakings; 2) substantially reduce regulation concerning the ratio of the number of responsible persons acting for the dispatching undertakings to that of dispatched workers, and the length of work experience required, with due consideration for protecting dispatched workers; and 3) substantially reduce regulation on office space required for worker dispatching undertakings.

4. Actions taken:

(1) The Cabinet Order for the Worker Dispatching Law was revised and an additional 11 types of designated works were added (implemented December 16,1996). (See below)

Beginning on January 28, 1997, the Central Employment Security Council undertook a comprehensive review of the labour dispatching business system, including the creation of a negative list on the scope of occupations for which worker dispatching is permitted, length of dispatching period, and measures for protecting workers. The Council will present an intermediate report in September 1997 and after determining the basic orientation of review by December 1997, and measures to implement this, including legal measures, will be taken as soon as possible.

(2) Deregulation concerning permits

1) Simplification of procedures and documents
* As a result of revisions of the Worker Dispatching Law, procedures were simplified, for example, extending the length of the validity of permits from three to five years, except for the first time (implemented December 16, 1996).
* As a result of changes in the ordinance for the Worker Dispatching Law, related documents were simplified, eliminating particulars to be entered on the business plan submitted (implemented April 1, 1996).
* As a result of changes in the ordinance for the Worker Dispatching Law, when notification of change of the responsible person acting for the worker dispatching undertaking is made, in cases where the business has multiple offices and the responsible officer transfers between these offices, the related documents were simplified by no longer requiring presentation of the responsible person's resume (implemented April 1, 1997).

2) Running both worker dispatching undertaking and employment placement project.
* By eliminating the requirement for separate entrances to the worker dispatching and the fee-charging employment placement project, it will now be possible to carry out both businesses within the same office (implemented according to a directive issued by the head of Employment Security Bureau dated April 1, 1997).

3) Responsible persons acting for the dispatching undertaking
* As a result of changes in the ordinance for the Worker Dispatching Law, the ratio of dispatched workers to responsible persons acting for the dispatching undertaking has been set at 100 to 1 (the previous requirement had been for a ratio of 100 dispatched workers to 1 responsible officer for each type of occupation).
* Regarding the requirement for experience of responsible persons acting for the dispatching undertaking, in addition to the previous "three or more years experience in employment management," the work experience requirement may now also be satisfied if the responsible persons acting for the dispatching undertaking has "experience totaling three years or more in both employment management and as a dispatched worker (with one year or more experience in employment management required)." (Implemented according to a directive issued by the head of Employment Security Bureau dated April 1, 1997).

4) Office space
The minimum office space required is now "20 square meters or more" compared to the previous requirement of 30 square meters or more (implemented according to a directive issued by the head of Employment Security Bureau dated April 1, 1997).

(For reference) Additional activities permitted:
1] Tour conductor for organized tours
2] Research and development
3] Planning and proposal of execution systems for operations
4] Creation and editing of books, etc.
5] Advertising design
6] Interior coordinator
7] Announcer
8] Automated office equipment instructor
9] Telemarketing sales activities
10] Sales engineer sales activities
11] Prop handling for broadcasts

Note 1: further coordination is being carried out with the concerned parties regarding nursing assistants in hospitals
Note 2: The number of permitted activities has been increased to 26 from the current 16. (The scope of activity mentioned in 1) is a revision of that in execution order Clause 2, No. 10.

6-(2) Review of Employment Placement Projects

1. Complainant:French Embassy, American Chamber of Commerce

2. Ministry concerned:Ministry of Labour

3. Results of deliberation:

(1) The renewal of term of validity of permit should be simplified as much as possible, with simplification of documents required implemented during FY1995, and further simplification carried out subsequently.

(2) Additionally, paying attention to the progress of deliberations in revising ILO Convention No. 96, the Central Employment Security Council Deliberative Council, in its study of fee-charging job placement businesses, should take constructive steps as follows, under the current ILO Convention No. 96:

1) The kinds of designated works should be expanded as much as possible, including the use of a so-called "negative list."
2) Concerning fees, market mechanisms should be utilized as much as possible, within the scope of regulations based on the current ILO Convention.
3) Regulations which now require a permit for each office should be relaxed, and revisions should be made concerning substantial relaxing of regulation of running both worker dispatching undertaking and employment placement project of office space required, and of number of years of work experience required.

4. Actions taken:

(1)
1) The following measures were taken regarding renewal procedures for the term of permit validity period, under a directive issued by the head of the Employment Security Bureau, dated April 1, 1997:
* Except for renewal every three years, no documents will be required for renewal procedures.
* Applicants will not be required to present an employment placement projects plan or a financial statement.

2) The following measures were taken regarding simplification of documents for permits, under a directive issued by the head of the Employment Security Bureau, dated April 1, 1996:
* Presentation of employees' resumes is no longer required.
* Presentation of financial budget sheets is not required

(2)
1) Range of occupations handled
Based on the December 24, 1996 proposal by the Central Employment Security Council, the range of occupations handled by placement agencies was expanded as a result of changes made to the regulations concerning the Ordinance for the Employment Security Law (see reference below), and the use of a negative list was begun, allowing all jobs other than those mentioned to be handled (implemented April 1, 1997).

Policies concerning further expansion of occupations handled will be decided based on the operation of the negative list and the changes to ILO Convention No. 96 which will be revised made in June 1997, after which the law will be changed and the amended Convention ratified, and will be formulated in more detail. In addition, further study to deciding on a basic direction for revision of the dispatching workers system, will be initiated during FY1997.

2) Fees
Based on the December 24, 1996 proposal by the Central Employment Security Council, nominal placement fees may be set freely after receiving approval, from April 1, 1997, (previously, the maximum allowed had been 10.1% of wages paid in the first six months after employment) as a result of changes made to the regulations concerning the Ordinance for the Employment Security Law.

3) Deregulation of permits
* Simplification of procedures and documents required
As a result of changes made to the regulations concerning the Ordinance for the Employment Security Law, when employer with multiple offices file applications, for changes in the name of the representative officer, etc. which apply to the entire operation, only the main office will be required to apply to make changes to permits or notifications (implemented April 1, 1997).
* Running both worker dispatching undertaking and employment placement project.
By eliminating the requirement for separate entrances to the worker dispatching undertaking and the fee-charging employment projects, it will now be possible to carry out both businesses within the same office (implemented according to a directive issued by the head of the Employment Security Bureau dated April 1, 1997).
* Office space
The minimum office space required, notwithstanding the range of occupations handled, is now "20 square meters or more" (the previous requirement was for an additional 6.6 square meters per additional occupation handled) (implemented according to a directive issued by the head of Employment Security Bureau dated April 1, 1997).
* Employment placement officers
The requirement for experience on the part of employment placement officers has been changed to three years' experience in the employment project (previously 10 years or more) or in occupation for which placement is being handled (previously 10 years or more) (implemented according to a directive issued by the head of the Employment Security Bureau dated April 1, 1997).

(For reference)
1) Manual labourer, except an expert and a technician, engaged in occupations of service.
2) Security guard occupations
3) Manual labourer, except an expert and a technician, engaged in occupations of agriculture, forestry and fisheries.
4) Manual labourer, except an expert and a technician, engaged in occupations of transportation and telecommunications.
5) Skilled worker, except an expert and a technician, and Manual labourer, except an expert and a technician, engaged in occupations of excavation, manufacturing, building and so on.

Note 1:Excluding new graduates who have been graduated one year or less, for clerical and sales jobs.
Note 2: Worker placement will be handled in the previous 29 industries.

6-(3) Revision of the Criteria of the Examination for Landing in Japan and Other regulations

1. Complainant:French Embassy

2. Ministry concerned:Ministry of Justice

3. Results of deliberation:

Current situation should be changed so that when a foreign national wishes to establish a company In Japan, it is easier for he company's representative to obtain or change status of residence.

The ministry concerned should clarify interpretation of the regulations in order to make the application and landing examination criteria more transparent. Further, when a foreign national is attempting to open a new office in Japan based on a contract with a foreign company for the purpose of engaging in sound economic activity, the application of current laws and ordinances should be reviewed for the individual to seek the status of residence (change of status).

4. Actions taken:

In this particular complaint, permission was given to change the individual's status of residence to that of Intra-company Transferee (one year validity period) in May 1996.

With regard to the clarification of interpretation of regulations, the ministry concerned has been providing information to the media on changes made to some status categories (ex, entertainer, pre-college student), and will try to continue providing easily understood information regarding landing and residence procedures through various media, and begin the service of the Internet step by step, by the autumn of 1997.

Regarding the examination on landing and status of residence for each individual when opening a new office in Japan, and when the case similar to the one in this complaint arise, each case will be dealt with in a flexible manner, by referring from regional immigration bureau to the Ministry of Justice, and permission or rejection will be determined based on individual circumstances, taking the type and size of business concerned into consideration and exercising due caution so that this procedure will not be abused, as a way of remaining in Japan.


7. Import Procedures

7-(1) Introduction of the Nationwide Common Bond for the Release of Imported Goods before (Formal) Permit

1. Complainant:Japan Foreign Trade Council, Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Finance

3. Results of deliberation:

To simplify import procedures, it should be made possible to use 'Before Permission' (BP) collateral, which is deposited with individual Customs offices nationwide during FY1996, using Sea-NACCS (Customs entry processing system for sea cargo) and Air-NACCS (Customs entry processing system for air cargo).

4. Actions taken:

The basic directive to the Customs Law was amended on March 4, 1997, to make it possible to use BP collateral nationwide at Customs offices which use Sea-NACCS or Air-NACCS. (Implemented March 24, 1997.)


7-(2) Introduction of Pre-Filing System

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Finance

3. Results of deliberation:

To fully meet users' needs for prompt customs clearance, sufficient attention should be paid to the operational aspects of the "immediate release system for air cargo at the time of arrival" to be introduced in April 1996, including its scope of application and procedures. For example, import permits should be granted promptly, by taking specific measures to verify the arrival of the cargo, in order to ensure importers' convenience as much as possible. In addition, information concerning this system should be disseminated more widely. The issue of whether to introduce this system for sea cargoes should also be studied, from the perspective of speeding up customs clearance and based on use of the system for air cargoes.

4. Actions taken:

The "immediate release system for air cargo at the time of arrival" will be operated so that import permits are truly issued immediately, by using NACCS to confirm the arrival of air cargo for which pre-filing has been used, to ensure users' convenience. In addition to notification of these changes in the Official Gazette, the head of the Customs Bureau issued a notification (April 17, 1996) informing the heads of customs houses and customs officers of this.

Importers, customs brokers and other concerned parties were also informed via weekly customs bulletins, and each customs house also held a briefing to inform importer, customs brokers and other parties of the system.


7-(3) Simplification of Import Procedures concerning Generalized System of Preferences Certificate of Origin

1. Complainant:Tokyo Chamber of Commerce and Industry

2. Ministry concerned:Ministry of Finance

3. Results of deliberation:

The Temporary Tariff Measures Law Enforcement Ordinance (implemented January 1, 1996) should be changed so that when a product is approved by the Director-General of Customs as clearly coming from the claimed country of origin due to its type and shape, presentation of a preferential origin certificate is not required, and that import procedures should continue to be simplified and speeded up for users' convenience.

4. Actions taken:

Regarding cargoes which importers are attempting to import under a preferential tariff, The Temporary Tariff Measures Law Enforcement Ordinance (implemented January 1, 1996) was changed so that when a product is approved by the Director-General of Customs as clearly coming from the claimed country of origin due to its type and shape, the requirement for presentation of a preferential origin certificate was eliminated. Furthermore, import procedures will continue to be simplified and speeded up for users' convenience.