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(Provisional Translation)

Policy Actions on Market Access Issues as Concerns Standards, Certification and Others (March 23, 1998)

March 23, 1998
Office of Market Access

The following measures to further improve market access will be taken, respecting to the greatest extent possible the "Recommendations on Market Access Issues as Concerns Standards, Certification and Others "(the 5th Report of the Market Access Ombudsman Council, March 17, 1998.)


1. Pharmaceuticals, Medical Devices, Cosmetics

1-(1) Simplification of approval procedures for foreign manufacture of medical devices

(1) Regarding the qualifications for in-country caretakers required for application for foreign manufacturing approval of medical devices, the issue of dividing the required classifications into ranks, appropriate to the degree of responsibility actually required, and to the degree of risk of the medical devices in question, will be studied and a conclusion reached during FY 1998.

(2) Regarding expanding the types of medical devices for home use for which approval is not required, results of study will be made public by March 31, 1998. The types for which approval is not required, for other medical devices with low risk to health, will be expanded as well.

(3) Improvement of mutual recognition of medical devices will be actively undertaken in meeting with foreign countries.


2. Construction

2-(1) Deregulation of construction licenses

(1) Enhanced activities to publicize the workings of the construction license system will be undertaken, by producing a pamphlet in English and other means, during FY 1998.

(2) A comprehensive study concerning review of the type classifications for construction licenses will be undertaken and a conclusion reached at an early opportunity. The issue of making public information on construction companies will be studied at the same time.

(3) The issue of further simplifying procedures for obtaining and renewing construction licenses will be studied.

2-(2) Clarification of approval criteria for Kenchikushi (architects and building engineers)

Criteria for application of Article 4, Clause 3 of the Kenchikusi's Law will be drawn up and made public during FY 1998.


3. Information, Telecommunications

3-(1) Improvement of policy on registration of Internet domain names by JPNIC

Bearing in mind international trends regarding administration of domain names, the Ministries will study this matter from the perspective of market access and promotion of inward investment in Japan and a conclusion reached in FY 1998. In addition, if necessary, the Ministries will urge the Japan Network Information Center (JPNIC) to revise its operating policy regarding domain names.


4. Import Procedures

4-(1) Improvement of tax payment method for postal matter from abroad

Study will be undertaken immediately concerning whether, in addition to payment of duties in cash, parties may be allowed to pay duties on foreign postal matter in a combination of revenue stamps and prefectural revenue stamps, and a conclusion will be reached during FY 1998.

4-(2) Improvement of post-clearance audit methods

Study will be undertaken immediately concerning post-clearance audit methods, including how ledgers and documents inspected are used, how stored electronic data forming part of those ledgers and documents is used, enhanced public relations concerning inspections, and so on, from the perspective of lightening the burden on taxpayers and improving the efficiency of tax collection, and a conclusion will be reached during CY 1998.


5. Other

5-(1) Clarification of tariff review mechanisms

(1) Procedures for review of customs tariffs will be put down in writing at an early date and made public. The content of this publication will be made as detailed and as clear as possible. An English translation will be prepared and published at the same time.

(2) The operations of the Customs Tariff Council will be made more transparent.

5-(2) Thorough implementation of the simplified certification of the system for exempting withholding tax at source for foreign banks

(1) "Tax-Answer" and the Internet will be used to enhance publicity regarding the system of exemption from withholding at source for interest on loans received by foreign banks, and the names, etc. of foreign banks which have received certificates of exemption from withholding at the source.

(2) In order to implement more thoroughly the simplification already made in FY1995, requiring foreign banks to show the certificates rather than requesting them with the view to ease the clerical burden on foreign banks, i.e., to submit the certificates to borrowers, a study on details of the system, including the number and validity periods of the certificates, will be initiated immediately, and from the viewpoint of the principle of non-discrimination between domestic and foreign entities in the financial sector and of ensuring appropriate taxation of foreign companies. A conclusion will be reached during FY 1998 and the necessary measures taken thereafter.

5-(3) Study of the issue of the per capita rate for local inhabitants tax on corporation

Regarding the local inhabitants tax, a broad study of issues, including that of the per capita rate for the local inhabitants tax on corporation, will be undertaken, from the viewpoints of fairness, impartiality and simplicity, and in order to create a climate facilitating the business activities of domestic and foreign companies based on the issues studied by the Taxation Commission.