The Cabinet Office, government of Japan ＞ Top page of OTO ＞ Reorganization of the Office of the Trade and Investment Ombudsman
(Provisional Translation)
Follow-up to the Report of the Market Access Ombudsman Council
May 27,1996
Office of Market Access
The following is a report on government actions taken in response to the Market Access Ombudsman Council's Recommendations on Market Access Issues as concerns Standards, Certifications, and others, dated March 14, 1995.
1. Animals and plants, food
1-(1) Improvement of the plant quarantine system and others relating to the import cut flowers
1-(2) Review of heat processing standards relating to the import of meat of cloven-hoofed animals
1-(3) Acceptance of foreign test results relating to the import of mineral water
2. Pharmaceuticals
2-(1) Simplification of approval procedures etc. for in-vitro diagnostics
2-(2) Abolition of handling health foods made from natural herbs as drugs
2-(3) Simplification of approval and licensing procedures for proprietary drugs
3. Manufacturing and related areas
3-(1) Acceptance of country of origin certificates by intermediary exporting countries relating to the import of silk fabrics
3-(2) Establishment of classification standards for X-ray film
3-(3) Changes to approval procedures for electric and electronic products
4. Transport and traffic
4-(1) Acceptance of data from EU testing organizations in other than automobile-producing countries
4-(2) Relaxation of weight restrictions when freight containers are transported by road
4-(3) Abolition of restrictions on transportation ships built for export
5. Construction
5-(1) Improvement of the inspection system for multi-story car parks
5-(2) Improvement of the certification system for wallpaper
6. Tertiary industries and related area
6-(1) Liberalization on representation of parties by foreign lawyers in international arbitration
6-(2) Review of regulation on premium offers
6-(3) Deregulation of the restriction of the number of races open to foreign horses and horse owner registration of persons residing overseas by the Japan Racing Association
7. Import procedures
7-(1) Extension of work hours for Customs offices and other bodies relating to import processing procedures
7-(2) Simplification of post-clearance examination of the Consumption duty on duty-free imports, etc.
1. Animals and plants, food
1-(1) Improvement of the plant quarantine system and others relating to the import cut flowers
1. Complainant:European Business Council
2. Ministry concerned:Ministry of Finance, Ministry of Agriculture, Forestry and Fisheries, Ministry of Transport
3. Results of Deliberation in the 2nd Report:
(1)
1) A study of measures is needed to ensure rapid response to the establishment of international standards set out by the FAO, including a study of risk assessment measures for insect pests for the purpose of clearly indicating pests which are not subject to be quarantined in Japan.
2) Methods to prove that insect pests are of the same type as those found in Japan are currently being developed. Regarding pests for which methods have already been developed, the countries where the insect pests are found will be asked for their understanding of the methods used through bilateral discussions.
3) The further study of sampling methods will be needed, in consultation with experts, in order to ensure efficient examination and reduce the burden on applicants.
(2) Hours of operation of the plant quarantine stations and duty hours for Customs officers at Nagoya and Fukuoka airports should be arranged to permit appropriate handling up to the last international cargo flight of the day.
1) To paying attention to keeping administrative efficiency, the plant quarantine stations will extend hours for inspections on request.
2) Regarding Customs, the ministry concerned is currently studying extending the duty hours of Customs officers, taking into consideration demand for work in non-regular working hours to handle import procedures for goods including cut flowers and available staff. These measures will be supported.
(3)
1) Regarding increasing the number of plant quarantine officers at Narita Airport, this issue will be studied based on the volume of work and of imported cargo handled. The possibility of re-hiring retired plant quarantine officers on a non- regular basis, or of contracting with private sector technicians, will be studied as well.
2) The ministries concerned will work to develop an interface between the computer systems for plant quarantine stations and Customs and to make the system operative at an early date.
(4) Regarding cut flowers pre-inspected in the Netherlands, Dutch and Japanese experts will need to clarify through discussion the reason for the occurrence of infringements. Based on the conclusions reached, bilateral consultations will be needed to discuss the possibility of adopting random checks
(5)
1) Cargo Building No. 4 will be completed in 1995, and in order to have the building layout reflect users' needs, the parties concerned will provide opportunities for users to state their opinions, including improvement of refrigeration facilities requested by the complainant, in the near future. Based on the outcome of these meetings, the necessary improvements to warehousing and sorting areas will be made respectively.
2) Cargo Building No.4 will have covered areas.
3) Early consideration will be given to providing covered areas for leaving samples awaiting testing.
(6)
1) Based on the complainant's assertion that fumigation fees at Narita Airport should be lowered, users and the fumigation companies will be encouraged to discuss the matter and study ways of improving the situation.
2) The concerned ministry will urge the related parties to secure more space for fumigation warehouses.
4. Actions taken:
(1)
1) Based on the Agreement on the Application of Phytosanitary Quarantine Measures (SPS Agreement) concluded at the Uruguay Round talks, the FAO adopted international guidelines on Pest Risk Analysis (PRA) in October 1995 to specifically determine pests subject to quarantine inspection in each country (*Note 1). With these guidelines in mind, Japan will conduct PRA and determine the quarantine measures based on its findings in Japan, and will submit an amendment (*Note 2) to the Plant Quarantine Law to the current session of the Diet. When this amendment is approved, the opinions of academic experts will be heard and studied, and after the related public hearings held the Ministry will determine which insect pests and plants require quarantine measures. After the related public hearings held.
2) When undertaking PRA, bilateral information exchanges will be conducted successively, and methods to prove that insect pests are of the same type found in Japan will be developed. And the countries where the insect pests are found will be asked for their understanding of the methods used. Bilateral information exchanges are currently taking place with the United States, Australia, the Netherlands, and New Zealand.
3) Studying sampling methods led to the conclusion that introducing a twice-sampling inspection method should be studied to avoid taking quarantine measures for cargoes with few insect pests. Experts agreed with this point on certain conditions. However, when examining a twice sampling inspection method to large volumes of import cargo requiring rapid inspection, it was concerned that cargoes with few insect pests would have to be re-inspected, which would increase the time for inspection and risk for damage to freshness. Some cut flower importers also have opinion worried about damages to freshness of cut flowers by re-inspection and would be impose substantial burden. Therefore the ministry reached the conclusion that the twice-sampling inspection method would be difficult to implement.
(2)
1) Hours of operation for the plant inspection stations at Nagoya and Fukuoka airports will be extended in FY1996 to permit appropriate handling up to the last international cargo flights of the day.
2) Since April 1995, measures have been in effect to allocate Customs officers on duty after regular hours to the last international cargo flights of the day at Nagoya and Fukuoka airports.
(3)
1) The number of plant quarantine officers on duty at Narita Airport will be increased FY1996 in response to extended operating hours to handle the last international cargo flight of the day. For the time being, therefore, it is not necessary to hire officers on a non-regular basis or to contract with private technicians to handle inspection of cut flowers.
2) Regarding interfacing the plant quarantine station computer system with the Customs computer system (NACCS), requisite reformative work on NACCS is under way and will be completed by January 1997. Equipment needed for the plant quarantine computer system will be acquired during FY1996.Therefore, the mutual interface will be created in FY1997 between both systems.
(4) Due to outcome of a meeting with experts from the Netherlands in March 1996 at the Japan-Netherlands Plant Quarantine Conference, the Netherlands authorities have understood that infringements are still continuously observed and that it is impossible to switch to a random check system.
(5)
1) Before the completion of Cargo Building No. 4, a meeting was held in June 1995 attended by the Japan Cut Flower Importers Association (the building's user), the Narita Airport Authority, International Airport Warehouse Co. Ltd. (the warehouse company), and Japan Airlines, in order to hear users' opinions and urge the improvements if possible to implement. The Airport Authority subsequently completed Cargo Building No. 4 in December 1995, which provides an additional 22,000 square meters of space for import cargo. Consequently, as for refrigeration warehouse and sorting areas, when users provide specific requests, adequate measures will be taken after coordinating among the parties concerned. Additional hearing for users will be taken if necessary.
2) Covered areas have been added at the time of construction of Cargo Building No. 4.
3) The corridors of the inspection site where cut flowers are left to await inspection will be covered in FY1996.
(6)
1) In August 1995, the fumigation companies, fumigation facility officials, and cut flower importers had meeting to exchange views. Based on the opinions of the parties regarding fumigation fees, it was agreed that the two sides should consult to make changes where possible.
2) The ministry concerned has had explanation of the Airport Authority, at a meeting of the concerned parties in July 1995, that additional space has been secured in existing fumigation warehouses.
[Note 1]
The FAO's PRA consists of the following three stages, to determine insect pests warranting quarantine and quarantine measures.
Stage 1: Does the insect pest require PRA?
Stage 2: Is the insect pest subject to quarantine?
Stage 3: What quarantine measures should be taken against the insect pest in question?
[Note 2]
Outline of the amendment to the Plant Quarantine Law
In order to carry out international plant quarantine in an appropriate manner, the types of insect and plant pests subject to international plant quarantine will be specified, and additional measures will be taken, by requiring exporting countries to inspect in cultivation areas, etc.
Bill tabled to partially revise the Plant Quarantine Law (extract)
Article 5, Clause 2 (Insect and plant pests subject to quarantine)
In this section, "insect and plant pests subject to quarantine" refers to harmful plants or insects which, if they spread, could damage useful plants, and they are so defined if they fit the definitions below:
1) plant or insect pests which exist in Japan but have not been detected
2) plant or insect pests which already exist in some parts of Japan, and which are subject to monitoring, prevention or eradication, depending on the country.
2 When stipulating the ordinance in accordance with the above, the minister of Agriculture, Forestry and Fisheries shall hold public hearings to hear from persons who may be affected by the decision and from academic experts.
1-(2) Review of heat processing standards relating to the import of meat of cloven-hoofed animals
1. Complainant:Thai Embassy
2. Ministry concerned:Ministry of Agriculture, Forestry and Fisheries
3. Results of deliberation in the 2nd report
(1) Clear information should be provided to the complainant soon as to the content and format of the data which should be submitted to avoid requests for supplementary data later.
(2) After the data in question is submitted, the time required to make the addition to the standards should be made clear and conveyed to the complainant, and technical discussions between Thai and Japanese experts should be held at an early date.
4. Actions taken:
(1) In February 1995 the data to be submitted was described to the Thai experts. In April 1996, when the interim report on scientific testing on heat processing methods requested by the Thai authorities was presented, they were informed of the content and format of the data to be presented, and were given advice concerning testing methods, etc.
(2) After the required data are presented by the Thai authorities, the heat processing method, if by the data ascertained to kill organisms causing animal infectious diseases will be incorporated into the existing heat-processing standards.
1-(3) Acceptance of foreign test results relating to the import of mineral water
1. Complainant:Keidanren
2. Ministry concerned:Ministry of Health and Welfare
3. Results of Deliberation in the 2nd Report:
(1) The Ministry will continue efforts to publicize the Exporting Country Public Testing Organization System and in particular the Pre-certification System for Imported Food by holding meetings with other countries so that registration for the latter system can be made quickly.
When doing the above, based on the present complaint, the Ministry will take into consideration opinions and requests of concerned parties about which imported foods from which countries the system should be used for more extensively.
(2) Regarding mineral water imported from the EU countries, the ministry concerned has simplified the documents required to be presented at the time of import, based on an agreement between the governments of Japan and the EU and this measure will be publicized further. The microorganism standards of other countries which export mineral water to Japan and wish to receive similar treatment will be checked, and if their standards are found to be compatible with Japanese standards, similar agreements will be concluded with those countries.
(3) Quarantine stations throughout the country will be advised in writing by April 1995 to post a list of documents, which must be presented to quarantine stations when importing mineral water, in locations visible to importers, and to distribute such a list if requested.
4. Actions taken:
(1) Since the introduction of the Pre-certification System for Imported Food in March 1994, the following efforts have been made to inform the system: meetings for foreign embassies in Tokyo were held in July 1994; between April 1995 and February 1996, ministry officials were dispatched to Canada, the United States, the Netherlands, Thailand and Australia to explain the system; and information about the system was also provided during the meeting of APEC Standards and Conformance Subcommittee in February 1995 and at a workshop on food import procedures sponsored by the FAO.
As of April 1996, 2,726 organizations in 49 countries (of which 239 organizations registered in 1995) were registered under the Exporting Country Public Testing Organization System. And under the Pre-certification System, 75 products (74 of which were registered in 1995) were registered, including mineral water from the United States and cheese from Australia.
Regarding the Exporting Country Public Testing Organization System, quarantine stations and the chairman of the Japan Imported Food Safety Promotion Association were notified to provide importers of wine from the EU with information on this system in May 1996. There were requests from Australia for application of the Pre-certification System to dairy products and from Thailand to processed shrimp products, and these products were registered in FY1995.
(2) Based on the agreement between the Japanese and the EU governments, the documents on testing for mineral water microorganisms, which must be presented at the time of import, have been simplified and this is being publicized. If other countries request the same treatment, microorganism standards of those countries will be checked and if they are found to be generally compatible with Japanese standards, similar agreements will be concluded with those countries.
As of May 1996, no countries other than the EU have requested similar treatment.
(3) Regarding documents to be presented when importing mineral water, a directive titled "Handling of Mineral Water" (dated April 28, 1995, from the head of the Quarantine Station Operations Control Section, Food Sanitation Division, Environmental Health Bureau) instructs officials to post a list of the required documents at the counter accepting notification of imported foods, and to distribute this list if requested
2. Pharmaceuticals
2-(1) Simplification of approval procedures etc. for in-vitro diagnostics
1. Complainant:European Business Council, German Embassy
2. Ministry concerned:Ministry of Health and Welfare
3. Results of Deliberation in the 2nd Report:
(1)
1) In order to simplify approval procedures while ensuring the function of in-vitro diagnostics drugs, gradual preparation for standards for in-vitro diagnostics in consultation with the concerned parties including the complainants, and establishment of the range of in-vitro diagnostics not requiring approval will be studied and implemented as soon as possible, so that the actual clerical burden in connection with approval examination is brought to US and European levels.
2) Regarding the question raised of establishing a separate classification from drugs and medical instruments for in-vitro diagnostics, the ministry will study the systems used in Europe and the United States to contribute to the consideration of above-mentioned measure.
(2) In order to simplify approval (license) procedures (requirements), the following measures should be taken immediately.
1) Based on consultation with the complainants, standards as to which products are subject to deliberation by or consultation with the Central Pharmaceutical Affairs Council, or for which test results must be requested from the National Institute of Health Institute when approval examination for in-vitro diagnostics takes place, will be clarified further during FY1995, and the categories affected will be listed and announced, as far as possible.
2) The requirement for separate supervisors for biological and non-biological products will be simplified during FY1995 so that one pharmacist may assume both duties.
3) Regarding the data on stability tests required in the application for approval of in-vitro diagnostics, the ministry concerned will grant approval even in cases where the established validity period is under six months, if there are rational reasons for this. The notices concerning this will be amended during FY1995 to make it clear that periods shorter than six months are acceptable, and when this is done, the meaning of "rational reasons" will be clarified as much as possible.
4) Clerical process will be improved with the introduction of applications on floppy disk scheduled in FY1995 and a computer on-line system to be set up between the ministry concerned and each prefecture so that the process, from receipt of application to actual delivery of the approval certificate to the applicant, will be completed within a six-month period.
4. Actions taken:
(1)
1) Based on consultations with the EBC and other concerned bodies, a notice from the Director of the Examination Division, Pharmaceutical Affairs Bureau, was issued in March 1996 regarding the scope of products for which approval will not be required. This notice states that as long as function is not affected, changes in ingredients or quantities which are not involved in the reaction, or changes in the dosage form of the constituent reagents, may be made without requiring approval for changes in the items of approval granted. Further consultations will be held with the concerned parties concerning other areas where changes may be allowed without requiring approval, in order to reduce the burden on applicants.
2) A survey of systems in EU countries and US will be undertaken in FY1996 in order to study classifying in-vitro diagnostics separately from drugs.
(For reference)
Regarding the Ministry of Health and Welfare's already established policy of not requiring approval for medical equipment used for in-vitro diagnostics, except for new equipment. The regulations of the Pharmaceutical Affairs Law, amended in June 1995 (effect in July 1995), specify many types of medical equipment, including medical equipment for in-vitro diagnostics, except for new equipment, as types without approval by product.
(2)
1) Based on consultations with the EBC and others, a notice from the Director of the Examination Division, Pharmaceutical Affairs Bureau issued in March 1996 listed in-vitro diagnostics for HIV, HCV, and others and clarified which are subject to deliberation by or consultation with the Central Pharmaceutical Affairs Council, or for which tests must be requested from the National Institute of Health.
2) A notice from the Director General of the Pharmaceutical Affairs Bureau issued in December 1995 allows supervisory duties for biological and non-biological in-vitro diagnostics to be handled by one pharmacist allocated in each manufacturing plant (import business office).
3) A notice from the Director General of the Pharmaceutical Affairs Bureau in March 1996 clarifies that established validity periods of less than six months for data on stability tests are acceptable.
4) A notice from the Director of the Examination Division, Pharmaceutical Affairs Bureau was issued in June 1995 announcing that applications on floppy disks would be accepted and that an on-line system with each prefecture would be set up in order to improve clerical processing.
2-(2) Abolition of handling health foods made from natural herbs as drugs
1. Complainant:American Chamber of Commerce in Japan
2. Ministry concerned:Ministry of Health and Welfare
3. Results of Deliberation in the 2nd Report:
The ministry concerned is undertaking a gradual review of its list concerning which substances should be classified as drugs. Taking this complaint, which points out differences in the systems of other countries in terms of scope of drugs, into full consideration, access of products which are already distributed as foods in other countries to the Japanese market should be facilitated.
When doing so, taking into consideration the complaint received, views should be exchanged with the complainant at an early date, so that a solution satisfactory to the complainant concerning handling of the products, which the complainant will indicate, can be reached as quickly as possible.
4. Actions taken:
The current regulations on shape (dosage from) and labeling for herbs will be relaxed as much as possible in FY1997 so that products distributed and sold normally as food products will not be regulated as drugs but be allowed into the market as food products.
2-(3) Simplification of approval and licensing procedures for proprietary drugs
1. Complainant:American Chamber of Commerce in Japan
2. Ministry concerned:Ministry of Health and Welfare
3. Results of Deliberation in the 2nd Report:
Approval and licensing procedures need to be simplified as much as possible with thorough reference to systems in various countries, to reduce the clerical burden on applicants, and the time required for approval and license need to be shortened as much as possible. The ministry concerned will streamline the documentation required for approval applications and will simplify and speed up procedures for approval and permission as follows.The government will make efforts to bring time and costs needed for approval and licensing procedures to a level similar to that of other countries by promoting the above measures.
(Measures to be taken in FY1994)
1) Introduction of the division licensing system.
2) Promotion of standardization of ingredient specifications, etc.
(Measures to be taken in FY1995)
3) For drugs belonging to any of the pharmaceutically therapeutic categories whose approval standards are prepared, approval authority will be delegated to the prefectural governors (Approval standards for external hemorrhoid preparations will be set out in FY1995.).
4) Authority to license manufacturing and import will be delegated to the prefectural governors (Authority will be delegated, except for manufacturing of vaccines, etc.).
5) An application examination system by floppy disk will be introduced.
6) Standardization of ingredient specifications will be promoted.
4. Actions taken:
3) Approval standards for external hemorrhoid preparations have been established, and a notice from the Ministry of Health and Welfare delegated approval authority to the prefectural governors, in April 1995.
4) A revision to execution orders of the Pharmaceutical Affairs Law was made, delegating authority to license manufacturing and import (except for the manufacture of vaccines, etc.) to the prefectural governors.
5) A notice from the Director of the Examination Division, Pharmaceutical Affairs Bureau issued in June 1995 announced the start of a system for accepting applications for approval on floppy disks.
6) Proposed amendments of about 100 specifications for the Japanese Pharmacopoeia, and about 130 specifications for drug additives are being studied. When the proposed amendments have been compiled, they will be approved after examination in a study group.
3. Manufacturing and related areas
3-(1) Acceptance of country of origin certificates by intermediary exporting countries relating to the import of silk fabrics
1. Complainant:German Chamber of Commerce in Japan
2. Ministry concerned:Ministry of International Trade and Industry
3. Results of Deliberation in the 2nd Report:
The necessary measures will be taken by the end of FY1994 to enable silk fabrics, as long as they are produced in the EU, to pass through the Japanese Customs when they are accompanied by country of origin certificates issued by official organizations in the non-producing countries within the EU.
4. Actions taken:
Since April 1995, it has become possible to submit to the Customs country of origin certificates for silk fabrics produced in the EU issued by official organizations in the non-producing countries within the EU. (Notice #176, Ministry of International Trade and Industry, March 31, 1995)
3-(2) Establishment of classification standards for X-ray film
1. Complainant:German Embassy
2. Ministry concerned:Ministry of International Trade and Industry
3. Results of Deliberation in the 2nd Report:
(1) The ministry is planning to make active efforts to participate in the ISO/TC135 committee (technical committee on non-destructive testing) and, even before international standards will be made up, to start work to harmonize JIS with the Draft International Standard (DIS) which is based on the committee draft that is scheduled to be made by October 1995. The ministry will make classification standards harmonizing with international standards in JIS, when international standard on classification standards will be made.(Note: The ministry decided in March 1995 to move up harmonization of JIS classification standards to the time when DIS is prepared.)
(2) In the light of the complaint that although European classification standards for X-ray film for industrial use were established in December 1994, the fact that Japan has no classification standards puts foreign products into disadvantage condition in a deal, the ministry will continue to exchange views, including discussions on possible ways of dealing with the situation, with the concerned parties as necessary, in order to gain the understanding of the complainant.
4. Actions taken:
(1) The ministry is actively participating in discussions of the SC5 (X-ray testing sub-committee) of ISO/TC135.
The SC5 prepared its draft report in October 1995, which was approved to examine as DIS.
According to the Industrial Standards Law, examination at the Japan Industrial Standards Examination Committee is required to draw up JIS. Measures have been taken to set up an expert committee (June 1995) for JIS on classification standards for X-ray film for industrial use within the Committee, and when the DIS is prepared, JIS harmonizing with this will be created. The complainant has also been appointed to the expert committee.
(2) In discussions with the complainant after the report was drawn up, the ministry explained to the complainant that it would be drawn up JIS to harmonize with international standards when the DIS is drawn up, in order to expedite the process, instead of waiting to draw up JIS when the ISO's international classification standards for X-ray film for industrial use are drawn up, as has been the case up to now, and gained the complainant's understanding.
3-(3) Changes to approval procedures for electric and electronic products
1. Complainant:Taipei Economic and Cultural Representative Office in Japan
2. Ministry concerned:Ministry of International Trade and Industry
3. Results of Deliberation in the 2nd Report:
(1) Translation into English of the technical standards of the Electrical Appliance and Material Control Law for the remaining products for which there is no translation yet will be continued.
(2) If Taiwanese sponsors of seminars on the Electrical Appliance and Material Control Law wish to extend the duration of seminars or otherwise present more detailed programs, the ministry will request the Japan Electrical Products Testing Laboratory to cooperate as far as possible.
(3)
1) As a way of reducing the burden on foreign businesses, the possibility of allowing the use of English on applications for registration and type approval will be studied.
2) The Merchandise Inspection Bureau of the Economic Department of Taiwan has concluded a cooperation agreement with the Japan Electrical Products Testing Laboratory, and effective use of this scheme could lighten the applicant's language burden upon testing.
3) The Japan Electrical Products Testing Laboratory and the Merchandise Inspection Bureau of the Economic Department of Taiwan are planning to enter into a cooperation agreement concerning registration of businesses, and such measures will be taken quickly.
(4)
1) 117 items in Type A electrical products will be transferred to Type B during FY1995, and the reporting forms for Type B electrical products will be rationalized. The ministry will also continue its policy of transferring more products to the Type B classification.
2) The ministry intends to make the specifications of the Electric Appliance and Material Control Law compatible with those of the IEC (International Electrotechnical Commission) within the next five years. (Note: This period was shortened to three years in April 1995, under the Economic Measures to cope with the Yen Appreciation.)
3) A private sector third-party approval system has been created and is being promoted, and bearing the present complaint in mind, the ministry will encourage the parties involved to make this system easy for foreign businesses to use as well.
4. Actions taken:
(1) The Japan Electric Products Testing Association, in cooperation with JETRO, is continuing to translate the technical standards "Ministerial Ordinance Setting Technical Standards for Electrical Products" (Ordinance No. 85 of the Ministry of International Trade and Industry, 1962). Translation of Attachment 1 (29 items in the category of electric cables and electric floor warming cables) and of Attachment 6 (14 items in the category of small transformers, voltage adjusters, and stabilizers for discharge lamps) of the ordinance was completed in FY1995. Translation into English of 450 items out of the coverage of the law, for which there was strong demand from importers, was completed in March 1996 and is scheduled to be printed within FY1996.
(2) To promote acknowledgment of the Electrical Appliance and Material Control Law, the Japan Electrical Products Testing Laboratory dispatched instructors to Taiwan to hold seminars of three days in total in FY1995, as had been done in FY1994.
(3)
1) When manufacturers' applications for registration and type approval are examined, they must be checked against laws written in Japanese. The issue of accepting applications in English was studied, but since misunderstandings of the content of applications during examination could arise due to linguistic differences and examination cannot be carried out appropriately, the use of English cannot be allowed. However, foreign manufacturers, including those from Taiwan, submit applications through examining bodies, and as the necessary forms are filled out by examining bodies in Japan and foreign countries on behalf of applicants, the language problems are actually made less severe.
2) The cooperation agreement between the Merchandise Inspection Bureau of the Economic Department of Taiwan and the Japan Electrical Products Testing Laboratory was used seven times in FY1995, and the language burden on applicants at the time of the model testing was reduced. When Taiwanese businesses obtain type approval for Type A electrical products, a cooperation agreement with the Japan Electrical Products Testing Laboratory makes it possible to use the data from tests carried out by the Merchandise Inspection Bureau of the Economic Department of Taiwan.
3) The Japan Electrical Products Testing Laboratory and the Merchandise Inspection Bureau of the Economic Department of Taiwan concluded a cooperation agreement in March 1996 concerning plant inspection of manufacturers. The agreement states that data from tests by the Merchandise Inspection Bureau of the Economic Department of Taiwan can be used for plant inspection carried out by the Japan Electrical Products Testing Laboratory, when Taiwanese manufacturers apply for registration of foreign manufacturers.
The complainant has understood that measures of the above 1) - 3) have reduced the burden of submitting applications in Japanese.
(4)
1) 117 items classified as Type A electrical products, including air conditioners, refrigerators, televisions, were transferred to Type B, and the reporting forms for Type B electrical products were simplified in July 1, 1995 by the revised government ordinance. The issue of transferring the remaining Type A items to Type B will continue to be studied after FY 1996.
2) In accordance with the shortened planning period of the Deregulation Action Plan, the specifications of the Electric Appliance and Material Control Law will be made more compatible with those of the IEC by FY1997.
3) As part of efforts to inform foreign manufacturers of the private sector third-party approval system, the Japan Electrical Products Testing Laboratory has held seven seminars on this approval system in six countries or regions, including Taiwan, during FY1995
4. Transport and traffic
4-(1) Acceptance of data from EU testing organizations in other than automobile-producing countries
1. Complainant:German Embassy
2. Ministry concerned:Ministry of Transport
3. Results of Deliberation in the 2nd Report:
Amended directives have been issued and from the spring of 1995, data from designated testing organizations in other than automobile-producing countries within the EU will be accepted.
4. Actions taken:
In accordance with a directive dated April 21, 1995, data from designated testing organizations in other than automobile-producing countries within EU will be accepted from May 1, 1995.
4-(2) Relaxation of weight restrictions when freight containers are transported by road
1. Complainant:Australian Embassy, French Embassy, American Chamber of Commerce in Japan
2. Ministry concerned:Ministry of Transport, Ministry of Construction
3. Results of Deliberation in the 2nd Report:
(1) A road network of important distribution routes capable of handling semi-trailers carrying fully loaded 40-ft containers, which will be allowed to transit with the road permits issued by road authorities, will be improved the end of FY1997.
The ministry will also allow transport of fully loaded 20-ft containers on vehicles with a wheel base of 10 meters, when axle weight restrictions, etc. are met on road networks capable of handling vehicles carrying fully loaded 40-ft containers.
Transit of fully loaded containers will be allowed under the condition of acquiring transit permits if a certain road networks can be established by securing detour roads and so on, even before the end of the 11th 5-Year Road Improvement Program. Information on road networks where weight restrictions to be relaxed will be provided as soon as possible.
(2)
1) For the convenience to vehicle manufacturers and vehicle transport operators, the conditions which vehicles must meet to be allowed to transit carrying fully loaded containers should be clarified well in advance, through coordination by the concerned ministries and agencies. When transit by vehicles carrying fully loaded containers will be allowed, the opinions of the complainants and vehicle manufacturers and operators regarding maneuverability should be referred to carefully as well.
2) The ministry will also allow vehicles with a wheelbase of 10 meters in current use to be amended by appropriate modifications under weight loads limit, if this meets the security standards for road transport vehicles.
(3) The ministry will carry out improvements to important distribution routes, such as roads linking national expressways and main container yards, within the 11th 5-Year Road Improvement Program. Regarding the decision on the specific roads to be improved, high priority should be given to roads with major demand for transport of freight containers. When deciding which roads will be improved, the ministry will take into consideration roads where there is currently heavy transport of freight containers under transit permits.
4. Actions taken:
(1) Major highways connecting major ports and industrial parks and other important distribution roads will be improved, by repairing and strengthening bridges, to bear the passage of semi-trailers carrying fully loaded 40-ft containers. Among the 460 locations where road improvements are planned, works were completed in 360 locations by the end of FY1995. And work on all the remaining locations will be completed by the end of FY1997.
When continuing the work of repairing and strengthening bridges, if certain road networks can be established by securing detour roads etc. even before the end of FY1997, it will be possible for vehicles carrying fully loaded 40-ft containers to transit these roads under permit as special vehicles.
On the same roads, vehicles with a wheelbase of 10 meters will be allowed to transport fully loaded 20-ft containers if axle weight restrictions are met under similar permit as special vehicles.
Information on networks where weight restrictions have been relaxed will be supplied available as soon as possible.
(2)
1) Organizations of vehicle manufacturers and transport operators, along with the Ministry of Transport and the Ministry of Construction, have established a venue for study which vehicles can transit with fully loaded freight containers after June 1995. They will reach a conclusion as soon as possible in FY1996 and will be scheduled to indicate this to the businesses concerned.
2) Regarding transport of fully loaded containers by vehicles with a wheel base of 10 meters modified appropriately, if axle weight restrictions stipulated in the security standards for road transport vehicles are met and a transit permit is also obtained, transit will be allowed when road networks are created.
(3) During the 11th 5-Five Road Improvement Program, roads where there is heavy demand for ship container transport will be improved with paying attention, including the roads used for transporting tall ship containers.
4-(3) Abolition of restrictions on transportation ships built for export
1. Complainant:Taiwan Trade and Culture Representative Office
2. Ministry concerned:Ministry of Transport
3. Results of Deliberation in the 2nd Report:
The restrictions making it impossible for foreign ships built in Japan to load or unload cargo in Japan will be abolished at an early date.
4. Actions taken:
Submitting a written undertaking when a building permit is granted for a ship to be used in near seas (export ships with overall gross tonnage of over 2,500 tons) will no longer be required (Administrative Notice dated June 16,1995). The entire system is scheduled to be abolished by the end of FY1996.
5. Construction
5-(1) Improvement of the inspection system for multi-story car parks
1. Complainant:German Embassy
2. Ministry concerned:Ministry of Construction
3. Results of Deliberation in the 2nd Report:
(1) The examination system will be improved during FY1995, such as by making the Committee set up a committee composed of neutral academic experts and so on.
(2) Flexible measures will be actively taken that the ministry will consider dispatching members of the Examination Committee from the Multi-story Car Park Industry Association abroad to carry out on-site inspection if it is practical to carry out inspection in foreign countries where the equivalent equipment has been already built and if the applicant so request.
(3) The ministry will consider the use of foreign inspection organizations for technical examinations of multi-story car parks, if the inspection organization in question has sufficient experience and ability and if there is concrete demand for this among foreign makers. The Ministry will begin by giving TUV's Japan office an opportunity to provide a detailed description of its examination system, and will carry out an on-site inspection at an early date in FY1995.
4. Actions taken:
(1) The Director General of the Metropolitan Bureau advised the Chairman of the Multi-story Car Park Industry Association in writing (on March 29, 1996) that no member of the Examination Committee shall be either an employee of private sector companies dealing with special equipment for parking, or a person with vested interests in the approval of the equipment in question by the Minister of Construction. Based on this, the Association changed the makeup of its Examination Committee on April 1, 1996.
(2) In order to further improve market access and to smooth entry in the domestic market of high-quality foreign mechanical parking equipment, the Director of the Urban Redevelopment Division of the Metropolitan Bureau made a written request (March 29, 1996) to the Chairman of the Multi-story Car Park Industry Association that the Association should establish a system of dispatching members of the Examination Committee abroad when on-site inspection is required abroad for examinations of foreign products related to the approval by the Minister under Clause 15 of the Executive Order of the Car Park Law. Based on this request, the Association replied that it would be willing to dispatch Examination Committee members to conduct on-site inspection when such inspection is needed in foreign countries.
(3) TUV's Japan office was invited to a hearing by the ministry and given an opportunity to explain its inspection system in March 1995. The ministry conducted an on-site inspection in Germany in March 27 to April 7 1995. It was ascertained that the complainant, the manufacturer of parking equipment, do not necessarily wish to utilize foreign inspection organizations if access to Japanese markets can be improved by establishing a dispatch system for on-site inspections abroad. Therefore, there are no plans to use foreign inspection organizations for the time being.
5-(2) Improvement of the certification system for wallpaper
>1. Complainant:French Embassy
2. Ministry concerned:Ministry of Construction
3. Results of Deliberation in the 2nd Report:
(1)
1) After April 1, 1995, regarding testing laboratories meeting the requirements of the "Guidelines for Designating Test Laboratories" and designated as testing laboratories beforehand, their test data are acceptable for certified fire preventive materials.
2) In order to conduct designation of testing laboratories smoothly, active efforts will be made to publicize improvement of system for accepting.
(2) In order to introduce a system of mutual recognition for performance evaluation carried out by certification organizations in the counterpart country, the ministry will have meeting with France, the United States, Canada, the EU, etc. And introduction of the system will be positively supported.
(3)
1) The ministry studied the way of further rationalization for procedures in General certification with the organization and parties concerned, which in planned to reach the outcome by the end of FY 1994.
2) To provide information on the certification system for foreign wallpaper manufacturers and importers, the ministry will also publish pamphlets in English describing Japanese building standards concerning wallpaper and certification procedures.
4. Actions taken:
(1)
1) The "Guidelines for Designating Testing Laboratories" (drawn up October 21, 1994) were implemented on April 1, 1995. Test data from testing laboratories, which meeting the requirements set out in the above Guidelines and already designated as testing laboratories, have be accepted, when fire preventive materials are certified.
2) Information regarding guidelines and application procedures for becoming a designated testing laboratory was provided to the French Embassy, US Embassy, Canadian Embassy and other foreign embassies beginning in November 1995. One Canadian testing laboratory was designated under the above Guidelines on December 19, 1995, and test data from this laboratory was accepted. Pamphlets in English describing Japanese building standards relating to wallpaper and certification procedures were also supplied.
(2) The ministry suggested holding consultations with the French authorities, and this will be taken place when the French side reaches to complete its necessary preparations.
(3)
1) The ministry studied the issue of rationalization procedures for General certification, and based on the results of its study, procedures for General certification of some types of wallpaper ("special wallpapers") in fireproof performance evaluation testing were simplified after March 13, 1995.
2) Pamphlets in English describing Japanese building standards relating to wallpaper and certification procedures was published and distributed after April 1995.
6. Tertiary industries and related area
6-(1) Liberalization on representation of parties by foreign lawyers in international arbitration
1. Complainant:European Business Council, German Embassy
2. Ministry concerned:Ministry of Justice
3. Results of Deliberation in the 2nd Report:
The Study Commission on the Representation of Parties in International Arbitration will reach conclusions consistent with international acceptable logic at an early date, and based on these conclusions, the necessary measures, including adjustment of related laws, should be taken as soon as possible.
4. Actions taken:
The Study Commission on the Representation of Parties in International Arbitration concluded in October 1995 that domestic law should clearly state that gaikokuho jimu bengoshi in Japan and lawyers practicing abroad are allowed to act as intermediaries in international arbitration. Based on this conclusion, the Bill to Partially Revise the Special Measures Law on the Handling of Legal Affairs by Foreign Lawyers has been submitted to the current regular session of the Diet.
6-(2) Review of regulation on premium offers
1. Complainant:American Chamber of Commerce in Japan
2.Ministry (agency) concerned:Fair Trade Commission
3. Results of Deliberation in the 2nd Report:
The fair trade commission will review of the maximum limit on amounts of premiums within the scope of general regulations according to conclusions that will be presented by a study group of academic experts at the end of March 1995. Taking into consideration the changes in socioeconomic conditions since specific restrictions were established, a basic reevaluation of the need for regulation will be undertaken with the aim of promoting fair competition. Specific contents of the review should be indicated, with a view to making regulation clear and keeping restrictions to the minimum, within the scope of necessity, and should be implemented as soon as possible in FY1995.
(1) The definition and interpretation of premiums, including the distinction between open and closed lotteries, should be clarified and regulations made more transparent.
(2) The maximum limits to premiums should be reevaluated, taking into consideration changes in socioeconomic conditions.
(3) In addition to clarifying that industry associations cannot extend the fair competition codes to companies which do not participate in the codes, the content and application of fair competition codes should be reviewed.
(4) Sales campaigns with premium offers by department stores should be liberalized and the offering of premium within the scope of general regulations should be allowed.
The issue of reviewing the other items mentioned in this complaint should also be studied.
4. Actions taken:
Based on the conclusions of the report by a study group of academic experts presented on March 28, 1995, the fair trade Commission announced the outline of revisions intended to review and clarify restrictions on premiums on June 29 and invited comments and requests concerning this. Hearings were held on December, 13 and 18, when a specific proposal for amendments was presented. After careful consideration of the opinions of academic experts, consumers, and concerned businesses, revisions to the general regulations on premium offers revised application guidelines were on February 16, 1996.
The contents of the revision are as follows (unless special mention is made, revisions were implemented on April 1, 1996):
(1) The scope of restrictions on open lotteries held by manufacturers was narrowed and clarified, including the fact that in principle, there is no problem if manufacturers place premium application forms on the premises of retailers they deal with.
(2) The maximum limit on premiums offered to general consumers not by lottery was abolished, the maximum limits on open lottery prizes and those related to the Notification Concerning Restriction on Lotteries on Prize Competitions were raised, and prizes offered by businesses were abolished (see reference).
(3) The Commission instructed industry associations (on February 16, 1996) to review fair competition codes at an early date. After studying the issue of reviewing fair competition codes in the auto industry, the content of these codes was made identical to that of the newly revised general regulations (hearings were held on April 22, and the revised codes were approved by the Commission on May 9 and implemented on May 10. A study of reviewing the codes in other industries is currently being undertaken.)
(4) Item 8 of Notice #7 of the Fair Trade Commission, (1954), relating to specific unfair transaction methods of department stores, was abolished.
In addition, the scope of restrictions on premiums offered to general consumers not by lottery was narrowed and clarified, and sales of products in sets, common discount coupons, and others no longer come under this designation.
6-(3) Deregulation of the restriction of the number of races open to foreign horses and horse owner registration of persons residing overseas by the Japan Racing Association
1. Complainant:Australia/New Zealand Chamber of Commerce
2. Ministry concerned:Ministry of Agriculture, Forestry and Fisheries
3. Results of Deliberation in the 2nd Report:
The JRA should hold discussions with the complainant concerning racing restrictions on foreign-bred horses at an early date and make efforts to gain the understanding of the complainant regarding internationalization measures.Regarding registration of horse owners, the JRA should solicit opinions from various related foreign organizations, etc., including the complainant, study the systems in use in various countries, and consider at an early date a method of examining persons residing abroad equally appropriate to that used for persons residing in Japan. The JRA should discuss this matter with the complainant and endeavor to obtain the complainant's understanding.
From the viewpoint of taking measures to internationalize horse racing, the ministry should encourage the JRA to hold talks with the complainant and to study the issue of horse owner registration of persons residing abroad in the immediate future.
4. Actions taken:
On April 13, 1995, the government encouraged the JRA to make steady progress in implementing its plan to liberalize racing participation by foreign-bred horses, to study the registration of persons living abroad as horse owners at an early date, and to make efforts to gain the understanding of related foreign organizations, etc.
As a result, in July 1995, the chairman of the JRA outlined to the New Zealand Thoroughbred Producers' Association the contents of its plan to liberalize racing participation by foreign-bred horses adopted in 1992, and the Association indicated, through the complainant, that it would not raise this complaint again in FY1995. Views were exchanged and contacts have been maintained when Association representatives visited Japan in November and when the JRA chairman visited New Zealand in January this year of 1996.
Regarding horse owner registration, the JRA established a project team on April 20, 1995 and is currently studying how this matter is handled in other countries. Measures will be studied based on studies and analysis by the project team
7. Import procedures
7-(1) Extension of work hours for Customs offices and other bodies relating to import processing procedures
1. Complainant:Keidanren
2. Ministry concerned:Ministry of Finance, Ministry of Agriculture, Forestry and Fisheries, Ministry of Health and Welfare
3. Results of Deliberation in the 2nd Report:
(1) The concerned ministry will study extending the working hours of Customs staff at Nagoya and Fukuoka airports, based on demand for after hours processing and staff availability. This will increase convenience for users, by making it possible, among others, to present applications for after hours processing outside of regular working hours, and the necessary measures should be taken soon.
(2) Overtime customs service fees should be undertaken as necessary, taking the clerical processing situation into consideration.
(3) Regarding inspection procedures based on other laws, the issue of increasing staff and extending working hours at Narita, Nagoya, Fukuoka and other major airports to make possible inspection of goods aboard the last international cargo flight of the day should be considered, taking administrative efficiency into mind.
4. Actions taken:
(1) In the matter of allocating Customs staff for overtime works at Nagoya and Fukuoka airports, for users' convenience it is now allowed for applicant to ask opening offices in irregular working hours, and since April 1995, Customs staff are on duty to handle the processing of the last international cargo flight of the day, even after regular working hours.
(2) Overtime customs service fees were reviewed in January 1994 to reduce the cost for importers, because of quicker Customs processing of small express parcels due to expansion of the number of applications for approval which could be handled after regular business hours. Fees will be revised further as necessary, regarding changes in the circumstance for Customs processing.
(3) Regarding inspection procedures based on other laws, duty hours at quarantine stations were extended for three hours until 8 p.m. at Nagoya Airport in April 1995 and at Fukuoka Airport in June of the same year. If specific requests for extending hours are received, the issue of extending working hours for inspecting imported foods at major airports will be studied, based on actual imports of foods, and measures will be implemented based on results of the study.
Duty hours for plant quarantine stations will be extended in FY1996 at Narita, Nagoya and Fukuoka airports in order to inspect the last international cargo flight of the day, to smooth import procedures.
Duty hours for the animal quarantine station at Nagoya airport were extended in April 1996 for inspection in the last international cargo flight of the day, in order to smooth import procedures. (This measure had already been done at Narita Airport.) The issue of increasing staff and extending working hours at other major airports, because of making possible inspection of the last international cargo flight of the day will be considered with administration efficiency in mind.
7-(2) Simplification of post-clearance examination of the Consumption duty on duty-free imports, etc.
1. Complainant:Keidanren
2. Ministry concerned:Ministry of Finance
3. Results of Deliberation in the 2nd Report:
The policy to require only necessary and indispensable documents from import declarers will be kept in the future.
4. Actions taken:
In order to ensure appropriate and fair taxation, a certain clerical burden on import declarer for post-clearance examination is unavoidable. However, taking their burden into account, the policy to require only necessary and indispensable documents will be communicated at meetings for officials handling post-clearance examination so that the policy will be ensured.