The Cabinet Office, government of Japan ＞ Top page of OTO ＞ Reorganization of the Office of the Trade and Investment Ombudsman
Examination of Decisions by the Office of Market Access
Toward Solving Remaining Problems
March 29, 2004
Market Access Ombudsman Council
This report covers the Market Access Ombudsman Council (MAOC) deliberation results during fiscal year 2003, the results of examination of the Office of Market Access (OMA) decisions, which were formerly taken in the “Comprehensive Review of OTO Cases” (March 2003) and the “FY 2001 Problem Raising Process” (March 2002), conducted at the Expert Conference meetings, and the results of the 20th and 21st meetings of the Grievance Resolution Committee.
We ask the Office of Market Access to respect this report to the fullest extent possible, and implement due measures steadily and promptly in areas where expected outcomes of the OMA decisions have not yet been fully attained.
I. Overview
II. Results of Examination of OMA Decisions
1. Animals, and Plants, Foods
1-(1) Transparency and rationalization of plant quarantine(raised in fiscal 2001)
1-(2) Allowing food testing to be conducted by private sector organizations(raised in fiscal 2001)
1-(3) Open access to food additives distributed abroad(Comprehensive Review)
1-(4) Review of medical classification (Comprehensive Review)
1-(5) Review of the JAS System, Utilization of the newly introduced Registered Foreign Certification Organization system (Organic JAS) (Comprehensive Review, raised in fiscal 2001)
2. Manufacturing
2-(1) Setting recycling fees based on the home appliance recycling law(raised in fiscal 2001)
3. Transportation and Traffic
3-(1) Review of the standard concerning domestic transport volume of poisonous and deleterious substance by tank container (raised in fiscal 2001)
3-(2)Revision of the vehicle inspection system for towing vehicles and towed vehicles (Comprehensive Review)
4. Construction
4-(1) Use of foreign testing data for the inspection of building materials,etc (Comprehensive Review)
5. Import Procedures
5-(1) Introduction of market principle to port business (Comprehensive Review)
5-(2) Reduction of charges for using the NACCS System, Review of the rate structure of Air-NACCS (Comprehensive Review, raised in fiscal 2001)
5-(3) Simplification and acceleration of import clearance procedures (Comprehensive Review)
5-(4) Realization of 24 hour/365 day customs and quarantine services (Comprehensive Review)
III. Consideration of Important Specific Issues
Appendices
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1. Examination of OMA Decisions(PDF file;8.1KB)
2. OTO Efforts Regarding Foreign Investment in Japan(PDF file;7.6KB)
3. OTO Activities in and after Fiscal 2004(PDF file;11.7KB)
4. Meetings of MAOC, MAOC Experts Conference and Grievance Resolution Committee (PDF file;21.6KB)
I. Overview
The Office of the Trade and Investment Ombudsman was first founded in January 1982 and reformed for enhancement in February 1994.
This year marks the 10th anniversary of the reform.
The OTO has tried to improve Japan’s market access by accepting and processing more than 1,000 grievances. However, similar grievances have been filed repeatedly. Because of that, the Market Acces Ombudsman Council (MAOC) took steps in fiscal year 2003 to examine the Office of Market Access (OMA) decisions, which were formerly taken in the “Comprehensive Review of OTO Cases” and the “FY 2001 Problem Raising Process,” in order to follow up on whether outcomes of the decisions have been achieved and whether the grievances were finally solved. For that purpose, the MAOC Experts Conference met four times to check the progress of 13 cases subjected to OMA decisions taken in FY 2001 and 2002, from the viewpoints of whether decisions were implemented on schedule an whether achievements were made as planned.
Regarding individual grievances, for which MAOC decisions were not taken, the Grievance Resolution Committee met two times to examine one important grievance.
1. Implementation of Measures to Improve Market Access
Through the Experts Conference’s examination in fiscal 2003, the MAOC confirmed that OMA decisions in fiscal 2001 and 2002 wer implemented generally.
On the grievance considered at the Grievance Resolution Committee, the responsible ministry presented measures toward a solution. Implementation of these measures is expected to improve Japan’s market access as follows.
(1) International Harmonization of Regulations and Standard/Certification Systems
As Japan’s regulations and standard/certification systems differ from foreign ones, some goods distributed in foreign countries cannot be imported into Japan or allowed to diffuse smoothly in Japan.
This has been related to many market access problems that the OTO has tackled so far. The efforts to harmonize regulations and standard/certification systems with international ones are very important for improving Japan’s market access, for contributing to the introduction and development of new technologies in Japan and for allowing consumers in Japan to have a greater diversity of choices of goods.
a) Review of Regulations Impeding Imports
Through the latest examination, we have confirmed that a fiscal 2001 OMA decision has allowed measures to be taken to harmonize Japan’s standards with international ones for vessels used for transporting poisonous and deleterious substances.
We have also confirmed that a fiscal 2002 OMA decision has led to moves to approve some food additives that have been distributed abroad and have yet to be approved in Japan. These measures are expected to facilitate the import of poisonous and deleterious substances and promote the import of foods that contain food additives and are distributed abroad.
b) Review of Regulations Restricting Domestic Diffusion of Imported Goods
Some regulations and standard/certification systems in Japan, while falling short of impeding the import of goods directly, may restrict the domestic diffusion of imported goods to effectively stifle imports.
Japan’s vehicle inspection system, unlike European and American systems, requires camping trailers to be linked to towing vehicles for inspection.
A complaint said that this requirement served to impede the diffusion and imports of camping trailers. Through the latest examination, we have confirmed that an OMA decision in fiscal 2002 has led the vehicle inspection system to be revised to allow any camping trailer to be towed by any vehicle as faras the trailer’s weight falls within the vehicle’s towing capacity range.
The measure is expected to promote the diffusion and import of camping trailers in the future.
In fiscal 2003, the Grievance Resolution Committee addressed a complaint that Japan’s voluntary Housing Performance Indication System failed to cover a new anti-termite technology (bait system) and impeded diffusion of the technology in Japan. As a result, the responsible ministry has indicated a plan to admit the technology under the Housing Performance Indication System. This is expected to allow diffusion of the technology and promotion of the import of relevant goods.
c) Implementation of Measures to Promote Registration of Foreign Inspection Bodies
Frequently, importers have no choice but to depend on domestic bodies for the compulsory inspection of imports to assess imported goods’ conformity to Japan’s standard/certification systems. This has served as an extra burden on importers in terms of costs and convenience.
Japan has established a system to allow foreign inspection bodies to be approved as a JAS Registered Certification Organization and as Overseas Approved Organizations and an Overseas Performance Evaluation Organization under the Building Standard Law. But a complaint said that the registration failed to make progress.
Through the latest examination, we have confirmed that OMA decisions in fiscal 2001 and 2002 have allowed measures to be taken to promote the registration of foreign inspection bodies. The measures include acceptance of some registration application documents written in English. These measures are expected to facilitate the registration of foreign inspection bodies and help reduce the extra burden on importers.
(2) Promotion of Efficiency of Export, Import and Port-related Services
Some of the export, import and port services in Japan are subjected to restrictions on new entries or commissioned to public corporations for the purpose of a stable supply of such services. Because of that, market principles fail to work in such services, imposing an extra financial burden originating from inefficiency on importers or the like. The improvement of the efficiency in these services to help reduce the extra burden on importers or the like maybe as effective as tariff reductions in lowering the prices of imports.
As for Japan’s port transportation services, demand-supply adjustment regulations were abolished for nine major ports upon a shift from business licenses to permits in 2000. Service fees were then subjected to prior notification in place of permission. As a result of the latest examination, we have confirmed that an OMA decision in fiscal 2002 has prompted relevant agencies to take similar measures for ports other than the nine major ones within fiscal 2004. In this way, competition is expected to emerge among transportation service providers at rural ports as well, contributing to reducing port transportation costs further.
As for the problematic restriction limiting designated inspection bodies for imported foods and the like to public corporations, we have confirmed that an OMA decision in fiscal 2001 has led inspection services to be opened to the private sector. Private-sector inspection bodies’ participation in such inspection services is expected to allow market principles to work to increasethe efficiency of inspection and reduce inspection costs.
There has been a complaint that users of the NACCS (Nippon Automated Cargo Clearance System) are forced to pay extra costs since charges for NACCS users are designed to cover total expenses of the NACCS Center, an independent administrative institution (a government-approved corporation until September 2003), in the absence of cost-cutting incentives. Through the latest examination, we have confirmed that OMA decisions in fiscal 2001 and 2002 have led the NACCS Center to make cost-cutting efforts and establish a third-party body of NACCS experts and users to consider NACCS user charges. These efforts are expected to help reduce NACCS users’ costs through cuts in NACCS charges.
(3) Improvement of Export, Import and Port-related Procedures
Improvement of export, import and port-related procedures in Japan can reduce time and financial costs for importers and the like, and enhance the distribution efficiency and ports’ international competitiveness in Japan.
As a result of the latest examination, we have confirmed that issuance of written disinfection orders to all importers even without requests and other measures have been taken to increase the transparency of and rationalize plant quarantine procedures under an OMA decision in fiscal 2001. We have also confirmed that relaxation of requirements for repeated imports subject to the simplified import declaration system, adoption of the single-window system and other measures have been implemented to simplify and accelerate import procedures under OMA decisions in fiscal 2002. In addition, it has been confirmed that efforts have been going on to realize 24 hour/365 day customs and quarantine services. These measures are expected to reduce the time and financial costs to importers and the like and facilitate imports into Japan.
2. Remaining Problems
Through the latest examination, we have confirmed that OMA decisions in fiscal 2001 and 2002 have generally been implemented. In the course of considerations at the Experts Conference, however, some complainants noted that responsible ministries’ actions were insufficient.
Some problems regarding Japan’s market access improvement have also been specified. As for the complaint addressed by the Grievance Resolution Committee, a decision has been made to implement a solution, and problems leading to the complaint have been specified. The following problems have been specified through the considerations in fiscal 2003:
(1) Responding to New Technologies
The complaint subjected to the considerations at the Grievance Resolution Committee in fiscal 2003 originated from the fact that anti-termite technology evaluation standards under the Housing Performance Indication System, created in 2000, were designed only for existing domestic technologies. A decision has been made to improve the law enforcement in order for the system to solve the complaint. However, this complaint has indicated that when new laws are developed, it is important to take into account new technologies that are widespread in foreign countries. Many recent grievances brought to the secretariat have been related to new laws. New technologies that are popular in foreign countries should be taken into account in the development of new laws. Technologies that had not been considered upon the development of laws should be positively given flexible treatment as far as possible, as indicated by this case.
When legal revisions are required, relevant revisions should be designed to cover new technologies emerging in the future. Through the latest examination, we have confirmed that the standards for vessels used for transporting poisonous and deleterious substances have been revised as citing international standards.
This will guarantee the international harmonization of standards in Japan in the future and should be considered a useful precedent when similar complaints are addressed.
(2) Promoting Utilization of Private-Sector Bodies
Through the latest examination, we have found problems emerging from public corporations that are commissioned to undertake services linked closely to Japan’s market access.
On the problem of the Japan Plant Quarantine Association’s involvement in fumigation as raised in fiscal 2001, complainants and the like have called for further improvements in spite of actions taken by the responsible ministry under an OMA decision.
In respect to a fiscal 2002 OMA decision to work on approval of food additives distributed abroad, it was pointed out that the ministry responsible had appointed only one public corporation to undertake the work and that such appointment was apparently affecting the progress in the approval. While the NACCS Center for controlling and managing the NACCS has established a third-party body to consider NACCS user charges, complainants and the like have pointed to problems regarding measures to reduce costs and charges.
There is the problem of “government-controlled markets,” where non-profit private-sector bodies dominate in providing public services under government control in Japan. The problem has also been raised in the “Third recommendations on Promotion of Regulatory Reform” (December 22, 2003) by the Council for Regulatory Reform.
In order to open Japanese markets wider to foreign goods and services, Japan should minimize public bodies’ involvement in services linked closely to market access and promote utilization of private-sector bodies.
(3) Steady Implementation of OMA Decisions
a) Ensuring Effectiveness of Measures
Through the latest examination, we have found OMA decision-based measures whose effectiveness may have not necessarily been ensured.
On a fiscal 2002 OMA decision to ensure the effectiveness of measures for deregulating port transportation services, complainants and the like have noted that it has been hard to get information about specific achievements. On the other hand, it had been noted since fiscal 1995 that the specification of reasons for disinfection orders during plant quarantine had failed to be implemented thoroughly, however, complainants and the like appreciated some improvements, confirming that the responsible ministry has successfully ensured the effectiveness of the measure.
In order to ensure the effectiveness of measures based on OMA decisions, we should hear some assessments of measures from complainants and the like. Through the latest examination, the MAOC has reaffirmed that it is important for us to invite complainants and the like to present opinions at our meetings. We urge relevant ministries to ensure the effectiveness of measures based on OMA decisions by hearing views from complainants and the like.
b) Specifying Measure-Implementing Dates and Goals
Through the latest examination, we have found some cases for which OMA decision -
based measures have failed to be implemented completely.
For the steady implementation of OMA decisions, it is very important to specify dates for taking specific measures.
On the review of food and drugs distinction, which the OMA decided to implement promptly in fiscal 2002, the responsible ministry indicated a plan to assess information and conduct research over a three-year period before the review. In contrast, as for a plan to open food inspection services to the private sector, which was raised in fiscal 1999 and remained under consideration for a long time, we have confirmed that measures have been implemented under a fiscal 2001 OMA decision that specified the target date for a relevant legal revision.
Specifying the goals of measures based on OMA decision will also contribute to steady implementation of these measures. Regarding deregulation and other measures for port transportation services, complainants and the like have requested specific goals to be presented. As addressed in the latest examination, it is desirable to give specific goals for staffing, financial and other measures required for implementing OMA decisions, if necessary.
As for cases where OMA decisions have failed to be implemented completely, it is important to repeat examinations like the fiscal 2003 checkup. If planned achievements fail to be accomplished, it is important to encourage relevant parties to accomplish the achievements as early as possible.
(4) Comprehension of Market Access Problems
Many of the recent complaints regarding new laws are related to the insufficient international harmonization of standard/certification systems that have been pointed out in past propositions and opinions.
As noted for consideration at the Grievance Resolution Committee in fiscal 2003, it is important to have solving measures that can be applicable to similar cases, keeping in mind past deliberation results.
It is also important to comprehend all relevant market access problems and position specific complaints clearly in an attempt to solve complaints thoroughly. For the latest examination, we have noted that Japan has lagged behind in ratifying the Convention on Facilitation for International Maritime Traffic in respect to the simplification and acceleration of import procedures. In the fiscal 1998 comprehensive review, we noted that it would be important to address all relevant complaints and problems integrally. Especially, foreign governments and the like have increasingly exploited non-OTO frameworks (including the Council for Regulatory Reform, and the World Trade Organization’s dispute settlement procedures and its committee deliberations), indicating that it is growing more important to comprehend Japan’s market access problems. While proceeding with close cooperation with the Council for the Promotion of Regulatory Reform and the Headquarters for the Promotion of Regulatory Reform that are to be created in early fiscal 2004, the OTO should positively use its unique function. It should also make Japan’s market-opening efforts through the OTO well-known at home and abroad.
3. Pursuing More Effective Grievance Resolution
As 10 years have passed since the OTO framework was enhanced in 1994, the situation surrounding Japan’s market access problems has changed.
In 1995 after the OTO framework enhancement, the World Trade Organization was created and dispute settlement procedures within the multilateral framework were strengthened. Recently, Free Trade Agreements have been positioned more often as a key trade policy issue. During the past 10 years, Japan has persistently continued market-opening efforts including those through the OTO framework. In all areas excluding agriculture and some others, tariffs, import restrictions and other traditional trade barriers have been reduced substantially. Japan’s external economic frictions have generally settled down. However, some market access problems regarding standard/certification systems, import procedures and the like have remained unsolved. It is still important for Japan to continue efforts to solve these problems.
In addition to tariffs and import restrictions, there are government measures that may turn out to be nontariff trade barriers only after close examination. Such measures have been found as a result of considerations at the OTO. OTO activities can reduce such measures. Nontariff trade barriers are not limited to Japan, but a common issue for all countries. It is desirable for the government to take advantage of opportunities at the WTO and other forums to make OTO activities well-known to foreign governments and other relevant agencies.
Since similar complaints have been repeatedly filed, the MAOC in fiscal 2003 examined OMA decisions in order to check whether complaints have been solved completely. A continuing issue is that there are some cases where past complaint-solving efforts have failed to be utilized. In order to resolve this issue thoroughly, it is important to address complaints while keeping in mind the possible application of their solutions to similar complaints. It is also significant to try to grasp not only grievances brought to the OTO but also requests made through non-OTO frameworks to specify the whole picture of a problem.
The OTO that fetes the 10th anniversary of its enhancement is required to respond to situational changes and problems.
Through the latest examination, we have found that it is important to steadily implement OMA decisions and that it is necessary to process complaints more quickly. In fiscal 2003, the relevant ministry introduced a measure to the Grievance Resolution Committee that would solve problems within a very short period of time. This means that the committee can be very effective at processing complaints more quickly. Even quicker responses are required for enhancing public confidence in the OTO, though the necessity of quick responses was pointed out in the FY 2001 Problem Raising Process and the one in FY 1999.
As the situation surrounding the OTO changes dramatically, the significance of the OTO’s market-opening efforts should be reconfirmed. In conducting the latest examination, we have emphasized again that the OTO’s market-opening efforts represent Japan’s voluntary market access improvements beyond reciprocity. Japan’s market-opening efforts contribute not only to benefiting consumers through the promotion of imports and diffusion of certain products or services, but also to revitalizing the Japanese economy through reduction of various costs accompanying trade and investment and the enhancement of competition in the Japanese market. It should be realized that the OTO’s voluntary market-opening efforts can contribute to benefiting the whole of the Japanese economy.
II. Results of Examination of OMA Decisions
1. Animals and Plants, Foods
1-(1) Transparency and rationalization of plant quarantine(raised in fiscal 2001 problem-raising process)
1. OMA Decision:March 20, 2002
2. Complainant:Tokyo Chamber of Commerce and Industry
3. Responsible Ministry: Ministry of Agriculture, Forestry and Fisheries
4. Issues Raised
(1) Thorough Specification of Reasons for Disinfection Order, etc.
Disinfection orders are issued while specific reasons (including names, etc. of quarantine pests adhering to import plants) for disinfection are not made known to importers. The Ministry of Agriculture, Forestry and Fisheries should always specify reasons for disinfection orders, etc. and take due measures to prevent unnecessary disinfection.
(2) Issuance of “Disinfection (Disposal) Order”
There are importers who need to have a “Disinfection (Disposal) Order” issued in order to encourage exporters to improve production steps or to demand damages. But all importers are required to request a “Disinfection (Disposal) Order” each time, and it may take more than several days to receive one through an intermediary agent. These procedures can affect importers’ requests and the like to exporters.
The ministry concerned should automatically issue a “Disinfection (Disposal) Order” for all similar import deals without a separate request for its issuance.
(3) Improvement of Disinfection Methods
A standard disinfection method in plant quarantine against harmful pests is designated as methyl bromide or cyanic fumigation or the like. The Ministry of Agriculture, Forestry and Fisheries should consider and introduce disinfection methods that have less impact on human bodies, materials and the global environment, depending very specifically on the pest.
(4) Improvement of Import Inspection and Disinfection Methods: Notification of the rough time to start Inspection
No rough time to start import inspection for each importer has been indicated, forcing some importers to face a long wait. The Ministry of Agriculture, Forestry and Fisheries should indicate the rough time to start inspection for each importer in advance to lessen the burden on importers and for their benefits.
(5) Elimination of the Japan Plant Quarantine Association’s Involvement
At every port where an office of the Japan Plant Quarantine Association is located, most importers have commissioned the association under contracts to conduct disinfection and other procedures.
As recession has been prolonged, expenses on services of the association have become a heavy burden on small and medium enterprises. The association frequently fails to provide services that meet such expenses. The Ministry of Agriculture, Forestry and Fisheries should eliminate the association’s involvement in fumigation services and develop a system where players are limited to plant protection offices, fumigation service providers and disinfection applicants.
(6) Implementation of All-Case, Same-Day Inspection Services through Review of Plant Quarantine Inspectors’ Services
At seaports and airports where fresh vegetable imports have increased rapidly, plant quarantine stations may leave some imports for inspection on the next day or later if imports exceed their inspection capacity. However, even a one-day delay in the inspection of perishables can cause heavy economic losses. All importsshould be inspected within the day of their arrival.
The Ministry of Agriculture, Forestry and Fisheries should thoroughly review the present services of plant quarantine inspectors and immediately take measures to respond to expanding imports.
5. OMA Decisions (March 20, 2002)
The following measures will be taken to increase transparency and rationalization of plant quarantine procedures.
(1) In order to specify the reason for disinfection order, etc., the ministry concerned will specify the reason for disinfection order, etc. by a) establishing a system to issue documents specifying the names, etc. of quarantine pests by promoting computerization and b) creating a column to specify specific reasons for disinfection order, etc., such as names of quarantine pests, in the “Disinfection (Disposal) Order” form.
(2) For the benefit of those who need to have a “Disinfection (Disposal) Order” issued, the ministry concerned will introduce a system to register importers who want to have a “Disinfection (Disposal) Order” issued each time and to automatically issue a “Disinfection (Disposal) Order” to such importers even without a separate request for its issuance.
(3) With regard to the disinfection method, the ministry concerned will strive to develop new technology and establish a disinfection method that is less harmful to plants, etc. or that does not use or uses only a small amount of methyl bromide.
(4) In order to lessen the burden on importers and for their benefits, the ministry concerned will study ways to notify the rough time to start inspection for each importer upon request from importers.
(5) The ministry concerned will strive to fully inform those concerned that it is not necessary to involve the Japan Plant Quarantine Association in fumigation, so that importers wishing to have their imports fumigated without the involvement of the association can do so without any restrictions.
(6) The ministry concerned will strive to make operations of plant quarantine inspectors more efficient and study ways to implement all-case, same-day inspection in response to a seasonal fluctuation of import volume by, for example, utilizing private engineers or part-time workers.
6. Response to OMA Decisions
(1) Policy actions have been given by a notice on “Market Access Issues as Concerns Standards, Certifications and Others” (by the Agricultural Production Bureau Director-General and the Agricultural Production Bureau Plant Protection Division Director at the Ministry of Agriculture, Forestry and Fisheries on July 10, 2002). Specific measures include the following.
a) Top priority is given to the “imported plant inspection computerization system operation project” among procedure computerization projects for an electronic government. Plant quarantine stations are now developing the system.
b) Specific reasons for disinfection orders, etc. are written in the No. 11 form of an annex to the Plant Protection Law Implementation Regulations (MAFF Ordinance No. 73, 1950).
(2) Each plant quarantine station has a “register of applicants for Disinfection (Disposal) Order” to register importers and the like by product and language (Japanese or English) at their request in advance and issue a “Disinfection (Disposal) Order” even without any new application every time that a cargo of any registered applicant fails to pass import inspection.
(3) As development research for new fumigation methods (including carbon dioxide gas fumigation) is under way at home and abroad, each plant quarantine station is positively tackling such development research.
(4) A daily inspection schedule is displayed for importers and the like. Such schedule specifies the time for each plant protection inspector’s departure from a plant quarantine station and his or her inspection schedule. If importers have planned to directly observe inspection, they will be informed of inspection-launching times as specifically as possible.
(5) A notice on the“Notification Regarding Implementation of Fumigation without Involvement of Japan Plant Quarantine Association” (by the MAFF Agricultural Production Bureau Plant Protection Division Director on June 10, 2002) was given to relevant entities. The ministry has also instructed each plant quarantine station director to try to implement appropriate instructions and improve the transparency of plant quarantine procedures, and will continue to make appropriate responses
(6) In order to respond to seasonal import volume fluctuations, the ministry has been employing part-time workers for auxiliary services of plant quarantine inspectors to facilitate overall import inspection. It has also been trying to make import inspection more efficient by outsourcing computer system management, database development and other services for which private-sector technical capabilities can be used.
7. Comments by Complainants
(1), (2) Automatic issuance of “Disinfection (Disposal) Order” for all import deals under the advanced registration system has been implemented. The registration of trading companies has allowed them to receive automatic notificationof the reasons for disapproval. These improvements are appreciable.
(3) We expect that disinfection methods that the people can view as reasonable will be developed and adopted, based on decisions by experts. We want easily understandable explanations to be given to the people as necessary about the decision-making standard and process.
(4) A daily import inspection schedule has been displayed at each plant quarantine office and notification has been made without fail to trustees commissioned by importers to take import procedures. Importers are now able to know the times for inspection in their presence and reduce waste. These improvements are appreciable.
(5) Notification to customs brokers and import service providers has been incomplete. Further improvements should be implemented to have such notification made not only to plant quarantine stations, relevant entities and the Japan Plant Quarantine Association, but also to customs brokers and import service providers.
(6) Although no major confusion is seen at present, we are concerned that if nighttime and holiday customs clearance is implemented, quarantine services could be delayed due to personnel shortages. The ministry should now consider outsourcing some services to the private sector in a forward-looking manner. Fromthe viewpoints of transparency of plant quarantine services and introduction of market mechanism principles, we ask the ministry to consider using private-sector technicians for plant quarantine inspectors’ auxiliary services (including inspection for detection of harmful pests) and other measures for outsourcing services to the private sector.
8. Examination Results
Through the latest examination, we have confirmed that the Ministry of Agriculture, Forestry and Fisheries has achieved substantial improvements regarding the specification of reasons for disinfection orders and similar actions, issuance of “Disinfection (Disposal) Order” for all relevant import deals, and notification of import inspection-launching times, among the matters subjected to the OMA decision in fiscal 2001. At the same time, we have found that complainants have been asking the ministry to take more positive measures regarding some of the matters.
Regarding improvement of disinfection methods, the complainants seem to have realized that the ministry’s efforts to develop new technologies or adopt new disinfection methodsare insufficient. We urge the ministry to make and continue more positive and increased efforts in accordance with OMA decisions.
As for elimination of the Japan Plant Quarantine Association’s involvement in disinfection services, we can appreciate the notification and other efforts of the ministry to some extent. However, our deliberations unveiled that the notification has been insufficient and that the notification’s effectiveness has not been secured sufficiently. The ministry is urged to refer to views given by the complainants and MAOC members in deliberations and continue efforts to make the notification really effective in accordance with the OMA decision to work for the thorough notification.
Regarding the review of plant quarantine inspectors’ services to implement immediate inspection of all imports within the day of their arrivals, the ministry has explained that it has been employing part-time workers and outsourcing some services. But the complainants expressed their concerns about delays in quarantine services for nighttime and holiday customs clearance and called for more efforts to outsource relevant services to the private sector. As for the quarantine service setup, the OMA, upon a comprehensive review in fiscal 2002, decided that responsible ministries would try to cooperate closely and promote efficiency-boosting and labor-saving efforts in order to realize 24-hour/365-day customs and quarantine services. The Ministryof Agriculture, Forestry and Fisheries is required to respond to the decision.
Based on this situation, the ministry is called on to refer to the opinions of the complainants, continue efforts for increasing the efficiency of plant quarantine inspectors’ services in accordance with the OMA decision and consider measures to implement immediate inspection of all imports within the day of their arrivals.
1-(2) Allowing food testing to be conducted by private sector organizations (fiscal 2001 problem-raising process)
1. OMA Decision:March 20, 2002
2. Complainant:Nagoya Chamber of Commerce and Industry
3. Responsible Ministry:Ministry of Health, Labor and Welfare
4. Issues Raised
If a quarantine station asks an importer to have imported foods inspected, the importer must ask one of the inspection organizations (as designated by the Ministry of Health, Labor and Welfare) to conduct the inspection. The designated inspection organizations are limited to incorporated associations and foundations.
The principle of market mechanism does not work because the private sector’s participation in designated inspection organizations is restricted. For example, inspection time and costs fail to be known to importers before inspection, indicating low-level services. Inspection costs are expensive.
Therefore, the ministry should designate not only incorporated associations and foundations but also private-sector entities as inspection organizations.
Regarding this problem, we have been aware that the Ministry of Health, Labor and Welfare has been considering desirable inspection organizations and relevant measures, including designation of private-sector inspection facilities as well as public corporations as inspection organizations under the Food Sanitation Law, in accordance with an OMA decision in March 2000. We want the ministry to give the conditions for the considerations.
5. OMA Decisions (March 20, 2002)
The following measures will be taken regarding the designated inspection organization under the Food Sanitation Law.
The ministry will clarify the specific contents of necessary measures, including the amendment of laws, to open up designated testing facilities under the Food Sanitation Law to the private sector. The ministry will submit a bill to amend laws to the current session of the Diet as much as possible and to the next session of the Diet at the latest.
This will be dealt with appropriately based on the program for implementation of reform of administration entrusted-type public corporations, etc. to be adopted by the Cabinet in late March.
6. Response to OMA Decisions
Regarding designated inspection organizations to inspect foods under inspection orders, a decision was made to take measures in a fundamental revision of the Food Sanitation Law to designate private-sector entities as well as public corporations as inspection organizations and shift from the inspection agency designation system to the registration system.
The Food Sanitation Law revision, which includes a measure to open designated inspection organizations to the private sector, was passed and enacted at the 156th Diet session and promulgated in May 2003.
Under the revised Food Sanitation Law, designated inspection organizations were opened to the private sector as from February 27, 2004.
7. Comments by Complainants
We thank the ministry for implementing the measure to open designated food inspection services to the private sector, although the implementation took a great deal of time.
8. Examination Results
Through the latest examination, we have confirmed that the relevant OMA decision has been implemented upon the promulgation in May 2003 of the revised Food Sanitation Law including the measure to open inspection services to the private sector, even after much time was consumed.
In the future, the participation of private-sector entities in food inspection is expected to ensure the working principle of market mechanism, improve the efficiency of inspection and reduce the burden on importers.
We expect the Ministry of Health, Labor and Welfare to take measures to facilitate private-sector entities’ participation in food inspection under the revised law and sufficiently monitor whether the originally expected effects are produced after implementation of the revised law.
A lot of time was consumed from the OMA decisions in fiscal 1999 to the implementation of the revised Food Sanitation Law. In this respect, attention should be paid to the ministry’s insufficient response.
1-(3) Open access to food additives distributed abroad (Comprehensive Review of OTO Cases)
1. OMA Decision: March 19, 2003
2. Complainant:NNFA Japan
3. Responsible Ministry:Ministry of Health, Labor and Welfare
4. Issues Raised
Foreign foods that include food additives other than those designated by the Minister of Health, Labor and Welfare cannot be imported into Japan. Foreign foods that include food additives whose safety has been confirmed in a foreign country should be allowed to be imported.
5. OMA Decisions (March 19, 2003)
The following measures will be taken for the treatment of food additives distributed abroad.
(1) The administration will take an initiative to conduct internal examinations and deliberations using available foreign testing data for the designation of food additives which are widely and safely distributed internationally. Additives will be approved for designation unless there are specific and clear reasons for them not being distributed in Japan. In addition, further efforts will be made to disclose the content of deliberations and examinations.
(2) Early deliberations and examinations will be made by the initiatives of an administration on 46 food additives and the designation of them will be decided based on the examination results.
Also, administration initiated deliberations and examinations will be made on qualifying and hugely demanded food additives other than the 46 items and active additional designations will be made based on the examination results. Prior announcement will be made about the additional designation, specifying the examined additives, the designation standards, schedules andothers.
6. Response to OMA Decisions
(1) As for food additives that a) have undergone international safety assessment at the Joint FAO/WHO Expert Committee on Food Additives (JECFA) and have been found safe within a certain scope, andb) are approved for use widely in the United States and EU countries, and are expected to be in great global demand, the ministry decided to consider safety and necessity individually in the direction of designation, even without requests from businesses or the like. The decision was approved by the Pharmaceutical Affairs and Food Sanitation Council in July, 2002.
In accordance with the decision, the ministry has been asking the Food Safety Commission to assess food additives as soon as their data is made available.
As for information disclosure, the Pharmaceatical Affaires and Food Sanitation Council meet in public to consider whether to desigunate specific food additives for use in Japan. Its data is published. As far as the ministry knows, the Food Safety Commission, which assesses the impact of foods on health, is opened to the public in principle.
(2) As the Food Safety Basic Law has been implemented, the ministry has requested that the Food Safety Commission assess the impact on the healthiness of additives as soon as their data is available.
By March 25, 2004, the ministry had asked the commission to make the assessment for eight food additives.
The ministry makes the designation based on recommendations by the Pharmaceutical Affairs and Food Sanitation Council, after the assessment of the impact on health by the Food Safety Commission.
Regarding undesignated food additives other than the 46 additives, the ministry intends to continue to address those meeting the above conditions, while giving priority to addressing the 46 additives. On perfumes, the ministry has asked the Food Safety Commission to make the health effect assessment for six products meeting the above conditions.
For other perfume products, the ministry is now collecting data necessary for such assessment. Based on the assessment by the Food Safety Commission and recommendations by the Pharmaceutical Affairs and Food Sanitation Council, the ministry intends to take appropriate measures. The ministry intends to address perfumes meeting the above a) and b) conditions in the same way as it would address the 46 food additives.
7. Comments by Complainants
(1) It seems that transparency is not secured in terms of information disclosure for the background for requests for the Food Safety Commission’s assessment, products subject to such assessment, treatment of assessment results, etc. It is desirable for information to be disclosed on food additives subjected to research, standards for decisions in the deliberation and examination process, reasons for conclusions, etc. It is also desirable for the ministry to have close communications with the industrial and academic worlds, and consumers in the deliberation and examination process.
(2) In the past year, some food additives have been designated for use in Japan. We understand that most of them were subjected to deliberations and decisions based on designation applications from the industrial world. Furthermore, these food additives are designated for use mainly for foods with health claims alone. They cannot be used for ordinary foods and dietary supplements. Since future designation is thus expected to limit use of food additives to foods with health claims, we believe that rules should be created and made practical for allowing food additives designated in this way to be used for ordinary foods as well. Attention should be paid to ensuring the transparency of additives subject to designation, and standards and schedules for designation.
8. Examination Results
After the OMA decisions in fiscal 2002, the Food Safety Commission was created to assess risks involving designation of food additives for use in Japan. Through the latest examination, we have found that the Ministry of Health, Labor and Welfare has taken the leadership in asking the commission to make risk assessments for some food additives in accordance with the OMA decisions.
During our deliberations, however, it was noted that information disclosure was insufficient regarding considerations before the Food Safety Commission was asked to make risk assessments. The ministry should redouble efforts to promote information disclosure regarding such considerations in accordance with the OMA decisions.
As for the 46 undesignated food additives planned for deliberations and examinations, the ministry is urged to redouble efforts to take the lead in the deliberations and examinations and make the designation based on the deliberation and examination results, in accordance with the OMA decisions.
Regarding undesignated food additives other than the 46 items, the ministry should make an announcement of specific items, designation standards and schedules in advance when making the positive additional designation.
Faster designation of food additives, utilization of private enterprises for that purpose and other problems, as cited during the latest examination, are important issues linked to the OMA decisions.
Complainants should consult with the OTO secretariat on these issues’ future treatment and the secretariat should try to take due actions.
1-(4) Review of medical classification (Comprehensive Review of OTO Cases)
1. OMA Decision:March 19, 2003
2. Complainant:NNFA Japan
3. Responsible Ministry:Ministry of Health, Labor and Welfare
4. Issues Raised
L-Carnitine is widely used for dietary supplements, baby foods and sports drinks in European countries and the United States. Although the complainant wants to import health foods containing L-Carnitine into Japan, L-Carnitine is classified as a pharmaceutical product under the Pharmaceutical Affairs Law of Japan, and use of this product in foods is not approved in Japan and any food containing this product cannot be imported into Japan.
However, L-Carnitine is a natural source of nutrition contained in milk, beef, asparagus, rice and other foods. It is not rational to classify this product as a pharmaceutical product, and it should be treated as food.
5. OMA Decisions (March 19, 2003)
The following measures will be taken regarding review of medical classification.
(1) As in the case of L-Carnitine being made available as food, those components listed as the ones to be used solely as pharmaceutical products in Japan although they are widely distributed and sold as foods in overseas countries will be scientifically examined on its contents, safety and functions and the classification of such components will be reviewed by active administrative initiatives. The authority will take prompt action to present specific components targeted for the revision of “the list of essential components (raw materials) to be used solely for pharmaceutical products” and the schedules for such procedures.
(2) Along with the revision of medical contents classification, measures will be taken to facilitate uninterrupted distribution and sales of such components as foods, for example, by designating such components as food additives.
6. Response to OMA Decisions
(1) Under the “research on the assessment of efficacy, safety and the like of essential components (raw materials) to be used solely for pharmaceutical products,” a new scientific research project for the health, labor and welfare area as adopted in fiscal 2003, the ministry will set data in order on contents, safety, physiological activeness and other characteristics of all products specified in “the list of essential components (raw materials) to be used solely for pharmaceutical products” and look into overseas conditions over a three-year period.
In the fiscal 2004 budget, the ministry has requested an outlay for a program for securing international harmonization of medical classification. Under the three-year program, the ministry plans to collect scientific data and develop a database on medical classification, health hazards, safety and the like in foreign countries.
Based on the results of the above scientific research in the health, labor and welfare area, and the database, the ministry will hear scientific opinions from academics and conduct necessary examinations including a review of medical classification standards. Essential components (raw materials) whose reclassification is found appropriate as a result of the examinations will be reclassified.
Under the above research, the ministry is setting data in order on all products specified in “the list of essential components (raw materials) to be used solely for pharmaceutical products.” Based on the result of the ongoing work, the ministry will select products for examinations on their possible reclassification.
(2) A notice on L-Carnitine was given to prefectural governments and other relevant entities on December 25, 2002. In the future, the ministry will take individual measures in accordance withthe review of medical classification.
7. Comments by Complainants
(1) After the designation of L-Carnitine as a food component, nothing has apparently been published on the medical classification review. The review may be making progress, but it seems that any progress has yet to be published.
It seems that no rules have been created for standards, reasons and the like for reclassification of products specified in “the list of essential components (raw materials) to be used solely for pharmaceutical products.” We believe that these points should be specified.
It also seems that products, schedules and the like for the review of medical classification have yet to be specified.
(2) As for components that have been listed as foods through the medical classification review but cannot be used for food production in the absence of their designation as food additives, it seems that measures such as their designation as food additives have yet to be taken to allow them to be distributed and sold as food additives.
8. Examination Results
As a result of the latest examination, the Ministry of Health, Labor and Welfare has presented plans to collect and set data inorder and develop a database over a three-year period before conducting the review of medical classification.
Since the government has decided to promptly specify products and schedules for the review, however, the ministry should promptly implement these plans in accordance with the OMA decisions.
Given the OMA decision that along with the medical classification review, measures such as the designation of these components as food additives for use in Japan will be implemented to facilitate uninterrupted distribution and sales of such components as foods,” the ministry is required to take measures to allow minerals and others approved as foods in the past to be distributed and sold without restriction.
We urge the ministry to take due actions for implementing the OMA decisions steadily and promptly, and to report progress to the MAOC through the secretariat in a timely manner.
1-(5) Review of the JAS System, Utilization of the newly introduced Registered Foreign Certification Organization system (Organic JAS) (Comprehensive Review of OTO Cases, Fiscal 2001 Problem-Raising Process)
1. OMA Decisions:March 19, 2003 (Comprehensive Review of OTO Cases) / March 20, 2002 (Fiscal 2001 Problem-Raising Process)
2. Complainant:Domestic Business
3. Responsible Ministry:Ministry of Agriculture, Forestry and Fisheries
4. Issues Raised
Establishment of Standard Disposal Period (Fiscal 2001 Problem-Raising Process)
Since there is no measure of a period between submission of an application for registration of new Registered Foreign Certification Organizations and the registration, those planning to use the organizations cannot make business plans. Some bodies have hesitated to file such applications, fearing that a prolonged disposal period would be required before the registration. Therefore, the Ministry of Agriculture, Forestry and Fisheries should establish a standard disposal period between the application for registration of new Registered Foreign Certification Organizations and the registration. Foreign manufacturers and the like have no measure of a period required for obtaining a certification from a Registered Foreign Certification Organization. Each organization should be encouraged to establish a standard disposal period concerning registration.
Measures to Increase the number of Registered Foreign Certification Organizations (Comprehensive Review of OTO Cases, Fiscal 2001 Problem-Raising Process)
(1) Measures to make applications easier, such as allowing the use of English
in the part of the documents necessary for registration application
When some foreign certification bodies were about to submit applications for registration in Japan, they were asked to submit application documents and materials in Japanese, and thus suspended their application process. The Ministry of Agriculture, Forestry and Fisheries should take measures to make registration applications easier, such as allowing the use of English in the part of the documents necessary for registration application.
(2) Relaxation of the requirement of “countries with equivalent systems to the JAS System”
The Registered Foreign Certification Organization system should focus on the certification capacity of specific organizations. The ministry should take specific measures, including abolition of the requirement of “countries with equivalent systems to the JAS
System” by encouraging the use of an organization registered with organizations (such as the IOAS) whose reliability has been internationally established.
5. OMA Decisions
(Comprehensive Review of OTO Cases: March 19,
2003)
Regarding the review of the JAS System, the following measures will be taken.
(1) Appropriate action will be taken immediately after conclusion is reached on matters regarding the acceptance of application documents for Registered Foreign Certification Organizations written in English, with the aim of easing the burden on foreign organizations and promoting more applications for registration.
(2) Conclusion will be reached soon to amend the JAS Law to abolish the requirement of “countries with equivalent systems to the JAS System,” and in doing so, the use of an organization registered by internationally recognized organization (such as the IOAS) will be encouraged. In the meantime, the amendment of the JAS Law will clarify the measures to make it possible for the registration of organizations not belonging to countries with equivalent systems to the JAS System as long s they are well equipped with the capacity to conduct the required services.
(Fiscal 2001 Problem-Raising Process: March 20, 2002)
The following measures will be taken regarding the utilization of the Registered Foreign Certification Organization system for organic agriculture products under the Law Concerning Standardization And Proper Labeling Of Agricultural And Forestry Products (JAS Law).
The ministry concerned/ prompted by the complaint in question, has set the standard disposal period concerning registration of new Registered Foreign Certification Organizations as within three months. In actually implementing the decision, the ministry concerned will strive to make its paperwork efficient and to handle applications promptly.
(1) The ministry concerned will study specific measures to make registration as Registered Foreign Certification Organization easy, such as allowing the use of English in the part of the documents necessary for registration application, from the standpoint of increasing the number of Registered Foreign Certification Organizations to facilitate the use of Registered Foreign Certification Organizations by importers.
(2) The ministry concerned will study revising the JAS Law and take necessary measures to make it possible for importers to utilize as Registered Foreign Certification Organization an organization belonging to a country not designated as a country with equivalent systems to the JAS System. The ministry will also abolish the requirement of “countries with equivalent systems to the JAS System,” a requirement that the ministry has adopted to ensure proper control and supervision of Registered Foreign Certification Organizations, and in doing so, encourage the use of an organization registered with organizations (such as the IOAS) whose reliability has been internationally established.
6. Response to OMA Decisions
The Ministry of Agriculture, Forestry and Fisheries has tried to promptly screen applications for the registration of new Registered Foreign Certification Organizations. By February 2004, the ministry registered 15 European bodies, seven Australian bodies, four U.S. bodies, three Canadian bodies and one Indonesian body as valid Registered Foreign Certification Organizations. The average disposal period has fallen within three months, excluding days consumed for preparation and submission of responses to the ministry’s inquiries.
(1) Among application forms for the registration of new Registered Foreign Certification Organizations, the forms (1] as given below) and appendix forms (2]-4] as given below) that are lesslikely to result in misunderstanding through translation have been accepted in English since April 2003, in order to reduce the burden on foreign bodies and the like.
[Application forms accepted in English]
1] Names and addresses of applicant bodies and persons
2] Names and addresses of executives
3] Latest property lists or balance sheets
4] Personal or corporate names of members
Regarding this, a notice “on forms for application for registration of new Registered Foreign Certification Organizations” (the notice by the MAFF Food Safety and Consumer Affairs Bureau Director-General in March 2003) has been given to relevant governments and bodies.
(2) Since considerations are indispensable to the equivalence of Registered Foreign Certification Organizations to domestic ones in respect to the whole of the Registered Foreign Certification Organizations system, the ministry plans to consider the matter as part of the review of the Registered Foreign Certification Organizations system for the JAS System, which is planned to be made from the viewpoint of administrative reform by 2005.
A panel on a desirable JAS System (that held its first meeting in October 2003) has been considering the review of the Registered Foreign Certification Organizations system for the JAS System at present. The panel plans to discuss the equivalence of Registered Foreign Certification Organizations to domestic ones as part of “a desirable JAS System meeting new social needs” around this spring.
7. Comments by Complainants
(No specific comments)
8. Examination Results
Through the latest examination, we have confirmed that the Ministry of Agriculture, Forestry and Fisheries has taken actions that generally meet the OMA decisions, including the acceptance of English application documents regarding matters that are less likely to lead to any misunderstanding through translation.
The ministry is urged to continue to implement measures for increasing the number of Registered Foreign Certification Organizations, including examination of whether it could further expand the scope of registration application forms to be accepted in English.
Since a responsible ministry is required to implement OMA decisions, we call on the Ministry of Agriculture, Forestry and Fisheries to take measures to implement OMA decisions by this spring in regard to the consideration of conditions for the equivalence of Registered Foreign Certification Organizations to domestic ones.
2 Manufacturing
2-(1) Setting recycling fees based on the home appliance recycling law(Fiscal 2001 Problem-Raising Process)
1. OMA Decisions:March 20, 2002
2. Complainant:Embassy of the Republic of Korea in Japan
3. Responsible Agencies:Ministry of Economy, Trade and Industry,Fair Trade Commission
4. Issues Raised
A uniform recycling fee is fixed for each product, working effectively to weaken the price competitiveness of South Korean electrical appliance manufacturers that produce and sell smaller-size appliances.
A uniform recycling fee for different sizes of the same electrical appliance is expected to affect the principle of free competition, deviate from the goal of the Home Appliance Recycling Law and increase the burden on consumers. Under Article 21 of the Home Appliance Recycling Law, the government should positively intervene in the determination of recycling fees and make due instructions and corrections.
Therefore, the government of Japan should make instructions and corrections to ensure that recycling fees will be determined according to size for each product (television sets, refrigerators, air conditioners and washing machines).
5. OMA Decisions (March 20, 2002)
The following measures will be taken toward setting recycling fees based on the home appliance recycling law.
(1) The ministry concerned will ensure the transparency of recycling costs by publicizing information on reasonable costs and see to it that recycling fees reflect the changes of recycling costs caused by the diversification of products and corporate efforts in the future.
(2) The Fair Trade Commission will monitor closely so that competition in thefinal market and the recycling market will not be restricted by the home appliance makers’ practice of jointly determine the specific amounts of recycling fees or by unreasonable restrictions imposed by the establishment of a new recycling system.
6. Response to OMA Decisions
(1) In Appendix 2 to Handout 4-4 given at the fourth joint meeting of the PC 3R Working Group of the Recycling Subcommittee and the PC Recycling Study Group at the Industrial Structure Council on November 14, 2001, information was provided on comparison between disposal costs in Tokyo and Yokohama, and recycling fees as set by major electric home appliance manufacturers for the four electric home appliances. The information is available on the website of theMinistry of Economy, Trade and Industry. In order to promote information disclosure further, the ministry put the comparison in the PR leaflet“Let’s Look at the Future – Electric Home Appliance Recycling Law,” which was distributed to the public through local governments in December 2002.
The ministry is monitoring developments to ensure the steady settlement and smooth implementation of the electric home appliance recycling system.
It is also assisting in research and development for recycling technologies for new-technology products and in research on recycling-oriented designs and recycled plastics-using technologies, in a bid to help prevent diversification of products from leading to higher recycling costs. [Ministry of Economy, Trade and Industry]
(2) The Fair Trade Commission will continue to monitor closely so that competition in the product market and the recycling market will not be restricted by the home appliance makers’ practice of jointly determine the specific amounts of recycling fees or by unreasonable restrictions imposed by the establishment of a new recycling system. [Fair Trade Commission]
7. Comments by Complaints
(No specific comment)
8. Examination Results<
During the latest examination, on disclosure of information on correct recyclingcosts, the Ministry of Economy, Trade and Industry explained that grasping correct costs was a pending problem. In this respect, recycling fees’ comparison with bulky waste disposal costs is appreciable as a stopgap measure. But the ministry is required to confirm that recycling fees have not been far above correctcosts. It is therefore urged to redouble efforts to grasp correct costs.
In addition, the ministry is continuously urged to try to disclose and monitor correct recycling costs in accordance with the OMA decisions. The steady implementation of the OMA decisions can respond to the complainant’s request for the introduction of different recycling fees for small- and large-size products.
In accordance with the OMA decisions, the Fair Trade Commission is called on to continuously monitor developments to ensure that no restrictions emerge on competition in the product and the recycling markets.
We request that the Ministry of Economy, Trade and Industry report progress in efforts for grasping correct costs to the MAOC through the OTO secretariat in a timely manner.
3. Transportation and Traffic
3-(1) Review of the standard concerning domestic transport volume of poisonous and deleterious substance by tank container (Fiscal 2001 Problem-Raising Process)
1. OMA Decisions:March 20, 2002
2. Complainant:Tokyo Chamber of Commerce and Industry / Embassy of the United States in Japan
3. Responsible Ministry:Ministry of Health, Labor and Welfare
4. Issues Raised
rticle 40-2 of the Poisonous and Deleterious Substances Control Law Cabinet Ordinance, the internal volume is limited to 10,000 liters for a vessel to transport poisonous inorganic cyanide (liquid only), hydrogen fluoride or drug products containing either poisonous substance.
On the other hand, international standards (including the International Maritime Organization (IMO) International Maritime Dangerous Goods (IMDG) Code and the Agreement on Dangerous Goods by Road (Europe)) have no restrictions on tank containers’ volume for international transportation of poisonous and deleterious substances.
Tank containers exceeding 10,000 liters in volume are frequently used for international transportation. This means that the Japanese restrictions impede imports of poisonous and deleterious substances into Japan.
The government should revise its standards to allow transportation of poisonous and deleterious substances in tank containers without vessel volume restriction in Japan as in Europe and the United States.
The article also requires splashboards to be installed within any vessel with internal volume at 2,000 liters or more for transportation of poisonous inorganic cyanide (liquid only), hydrogen fluoride or drug products containing either poisonous substance.
However, relevant international standards including the IMDG Code and the Agreement on Dangerous Goods by Road (Europe) do not require splashboards if the volume of substances is at 80% or more of capacity. The Japanese splashboard requirement thus impedes imports of poisonous and deleterious substances in splashboard-less vesselsinto Japan.
Japan should harmonize its splashboard standard with the international standards.
5. OMA Decisions (March 20, 2002)
The following measures will be taken regarding the standard on the domestic transport volume of poisonous and deleterious substances by tank containers.
(1) The ministry will promptly complete investigations with regard to standards for transportation of poisonous or deleterious substances by tank container, review the standards in order to conform them to international standards, and revise the Cabinet ordinance early in FY2002.
(2) In revising the Cabinet ordinance, the ministry will study making regulations that will maintain the conformity of domestic standards with international standards in accordance with changes in international standards
6. Response to OMA Decisions
(1) The ministry conducted a survey on the International Maritime Organization (IMO) International Maritime Dangerous Goods (IMDG) Code, requested the Pharmaceutical Affairs and Food Sanitation Council to consider measures allowing domestic use of tank containers meeting the international standards, and received the council’s report on November 5, 2002, recommending these measures as advisable.
he ministry revised the cabinet and ministerial order for the implementation of the Poisonous and Deleterious Substances Control Law (Cabinet Ordinance No. 406 on December 27, 2002, and Ministerial Ordinance No. 5 on January 31, 2003) to allow domestic use of tank containers meeting the IMDG Code.
(2) On the international standards-meeting vessels as a special exception to the transportation vessel standards, the ministerial ordinance for the implementation of the Poisonous and Deleterious Substances Control Law provides for “those corresponding to portable tanks as provided in the International Maritime Dangerous Goods Code adopted by the International Maritime Organization.” This provision is designed to allow the domestic standards to meet changes in and remain harmonized with the international standards.
7. Comments by Complainants
The revisions of theCabinet ordinance on December 27, 2002, and the Ministerial ordinance on January 31, 2003, for the implementation of the Poisonous and Deleterious Substances Control Law have allowed the substances in question to be transported without restrictions on vessel volume in Japan.
This year’s change in the international supply-and-demand relationship for raw materials was about to lead to massive imports from China of fluorine material for refrigeration gas and fluorocarbon resin. The revisions were very timely, bringing about smooth importation of relevant cargoes. [Tokyo Chamber of Commerce and Industry]
The Pharmaceutical and Food Safety Bureau Director-General of the Ministry of Health, Labor and Welfare notified us that, from the viewpoint of Japanese standards’ harmonization with international ones regarding the standards in Article 40-2 of the Poisonous and Deleterious Substances Control Law Cabinet Ordinance for vessels for transportation of inorganic cyanide, hydrogen fluoride or drug products containing either substance, the ministry would allow domestic use of vessels that meet the International Maritime Dangerous Goods Code, are equal to or more excellent than those meeting the Japanese standards and are stipulated by the ministry as appropriate.
We thank the OTO very much for its tremendous efforts that have led to the partial revision of the Poisonous and Deleterious Substances Control Law. [Embassy of the United States in Japan]
8. Examination Results
Through the latest examination, we have confirmed that a fiscal 2002 Cabinet ordinance revision established a provision to allow domestic use of tank containers meeting international standards, thus implementing the OMA decisions.
Especially, we appreciate that the revision included a measure to have the new provision cite the international standards to keep the Japanese standards in accordance with changes in the international standards, in a manner that reflects discussions at the MAOC Experts Conference in fiscal 2001.
The measure is expected to facilitate importation of poisonous and deleterious substances into Japan and reduce domestic transportation costs.
3-(2) Revision of the vehicle inspection system for towing vehicles and towed vehicles (Comprehensive Review of OTO Cases)
1. OMA Decisions:March 19, 2002
2. Complainant:Embassy of the United States in Japan
3. Responsible Ministry:Ministry of Land, Infrastructure and Transport
4. Issues Raised
Since camping trailers (towed vehicles) are expensive and since it is difficult to secure parking lots for them, many consumers are willing to use rental camping trailers.
However, Japan’s vehicle inspection system serves to impede diffusion of imported camping trailers by requiring camping trailers to be connected to towing vehicles for inspection. Vehicles eligible to tow camping trailers are limited to those whose names and types are specified in these trailers’ individual vehicle inspection certificates, effectively barring consumers from connecting their own vehicles to rental camping trailers.
In Europe and the United States, meanwhile, towing capacity is specified on each vehicle, allowing users to freely choose towed vehicles according to towing capacity ranges of their own vehicles.
Based on the above, the Ministry of Land, Infrastructure and Transport should revise the present vehicle inspection system to allow consumers to freely choose and use towed vehicles according to towing capacity ranges of their own vehicles.
5. OMA Decisions (March 20, 2002)
The following measures will be taken regarding revision of the vehicle inspection system for towing and towed vehicles:
Regarding the revision of the vehicle inspection system for towing vehicles and towed vehicles, the detailed work schedule for implementation will be announced to the public, such as timing to solicit public comments and timing to notify the WTO, and prompt measures will be taken in a way that the new system will be assuredly put into operation by the end of fiscal 2003 at the latest.
6. Response to OMA Decisions
The Ministry of Land, Infrastructure and Transport Ministry is now taking procedures, including revision of its relevant ordinance, to specify the maximum towing weights in inspection certificates for vehicles for towing camping trailers and the like, and allow these vehicles to tow camping trailers and the like even if these vehicles’ names or types are not specified in inspection certificates for the camping trailers and the like (see Note). The procedures will be completed by the end of fiscal 2003 (the revision will be promulgated on March 31, 2004, for implementation on July 1, 2004).
Note: Inspection certificates for towed vehicles (including camping trailers) are required to specify names and types of towing vehicles (Article 35-3 of the Road Vehicle Act Implementation Regulations). If vehicles that are not specified in inspection certificates for towed vehicles were to be used for towing, inspection certificates of the relevant towed vehicles would have to be rewritten (Article 67 of the Road Vehicle Act).
7. Comments by Complainants
The revision will allow camping trailers, for which towing vehicles are not specified, to be towed by vehicles whose inspection certificates specify “the maximum weights of camping trailers and the like for towing” or “trailers’ names and types.” This means that a user who has equipped his vehicle with a connection device for towing a camping trailer or the like, and has registered and specified the maximum weight of a camping trailer or the like for towing in the inspection certificate for his vehicle will be allowed to use his vehicle to tow any unspecified trailer within the weight range as specified in the certificate. The simplification of trailer registration procedures will allow vehicle owners to freely use rental trailers, lend his trailer to a friend and borrow a trailer from a friend. Camping trailers can thus be expected to be used more widely.
On the other hand, however, the latest revision falls short of eliminating the requirement for connection registration. Anyone will still be required to take a series of registration procedures in order to use his vehicle for towing a camping trailer or the like, even though the procedures have been simplified. Any user will still be forced to make efforts to prepare a written calculation for the procedures. For further diffusion of camping trailers and the like in Japan, we would like to see our earlier request being met for the next deregulation. This means that the vehicle inspection system should be further revised to require the publication of the maximum towing weight of camping trailers and the like for each vehicle type, allow any user to base a combination of towing and towed vehicles on such published data and eliminate any
registration procedures, as seen in Europe and the United States.
It is desirable for the ministry to watch the effect of the latest revision and implement the additional revision in one year, for example. It is also desirable for the ministry to accept an import-related group like the Japan Recreational Vehicle Importer’s Association, for example, as an agency to publish “maximum towing weights of camping trailers and the like.”
8. Examination Results
Through the latest examination, we have confirmed that the OMA decisions have been implemented as the Ministry of Land, Infrastructure and Transport explained that it plans to take necessary procedures, including revision of the relevant ministry ordinance, to simplify procedures for registration of camping trailers and the like by the end of fiscal 2003.
During the latest examination, meanwhile, the complainants and others praised the ministry’s actions to some extent and made a request for an additional vehicle inspection system revision to eliminate all registration procedures as done in Europe and the United States.
The complainants and others should consult with the secretariat, if necessary, after watching developments after the ministry ordinance revision; and the secretariat should make due response.
4. Construction
4-(1) Use of foreign testing data for the inspection of building materials, etc. (Comprehensive Review of OTO Cases)
1. OMA Decisions:March 19, 2003
2. Complainant:Tokyo Chamber of Commerce and Industry
3. Responsible Ministry:Ministry of Land, Infrastructure and Transport
4. Issues Raised
Inspection must be conducted in Japan on imported building materials even if they already have foreign specification approvals, and it costs more than one million yen. The government should make procedure-simplifying efforts including use of foreign testing data for the inspection on imported building materials.
Regarding foreign-made wooden fire-proof doors, the government should accept testing data in European countries and other exporters of the products and base Japan’s examination and certification on such foreign data in order to simply certify these products’ compatibility with Japanese standards and promote their importation into Japan.
5. OMA Decisions (March 19, 2003)
The following measures will be taken promptly to facilitate the applications for recognition of Overseas Approval Organizations and the Overseas Performance Evaluation Organization under the Building Standard Law and from foreign inspection bodies.
(1) The ministry concerned will establish and announce the standard processing period for applications of recognition, and will also make efforts to facilitate rapid processing, while securing the transparency of approval procedures.
(2) The ministry concerned will consider and implement the acceptance of English application documents to promote applications of recognitions through an effort to ease the burden on foreign assessment organizations.
(3) The ministry concerned will promote active and effective PR activities for the usefulness of the new systems in question. The ministry will compile and application manual in English which explains the actual procedures for application process of required documents (including format), consultation services and other related information. The manuals will be distributed and posted on its website.
The responsible ministry will also consider measures for early realization of reciprocal recognition between major trading partners on building materials to ease the burden and improve the convenience of users as well as to develop better market access.
6. Response to OMA Decisions
(1) The Ministry of Land, Infrastructure and Transport has determined and published on an Internet website and the like the standard processing period for applications of recognition (since October 2003) and is trying to screen such applications promptly.
(Website address:http://www.mlit.go.jp/english/housing_bureau/recognition/index.html,the same hereinafter)
(2) English documents that are accepted for approval applications have been published (since October 2003) as follows:
- property list, etc.
- budget
- documents specifying names and personal histories of executives, etc.
- documents specifying
addresses of offices
- documents specifying names, addresses, number of shares, etc. for those who each hold 5% or more of outstanding equity shares
- documents specifying names and personal histories of evaluators (recognizers)
Applicants are allowed to write names and addresses of applicant organizations and persons in English on all application documents.
(3) The ministry has positively provided information on the outline and usefulness of the system to foreign embassies in Tokyo, and inspection and other foreign organizations. In this respect, the ministry has created, distributed (in June and July 2003) and posted on its website (since August 2003) an English application manual that outlines procedures for applications for recognition of Overseas Performance Evaluation Organizations and specifies required documents and the like.
Similar information regarding Overseas Approval Organizations has also been posted on its website (since October 2003).
The ministry has also advertised the outline and the usefulness of the Overseas Performance Evaluation Organization system at international conferences that are bilateral or multilateral.
The ministry is continuing to give further considerations to the system, while watching evaluation records of the Overseas Performance Evaluation Organization, etc. and requests from foreign countries. (For example, the ministry at a Japan-EU regulatory reform forum (in November 2003) proposed the continuous exchange of information between experts on both sides’ regulatory requirementsregarding formaldehyde.)
(Others) The Australian Building Codes Board (ABCB) was approved as an Overseas Performance Evaluation Organization (in June 2003).
7. Comments by Complainants
(1) We appreciate that the standard processing period for applications of recognition has been established and posted on an Internetwebsite.
(2) We appreciate that the submission of plural documents written in English has been accepted. If the range of accepted English-written documents expands further, it may further reduce the burden on applicants (foreign inspection organizations) and contribute to increasing the number of Overseas Approval Organizations or Overseas Performance Evaluation Organizations.
(3) We appreciate that an English application manual has been posted on an Internet website. If specifying inquiry-receiving desks, the manual may be more useful for applicants (foreign inspection organizations).
We request continuous efforts to realize reciprocal recognition between major trading partners.
>8. Examination Results
Through the latest examination, we have confirmed that the Ministry of Land, Infrastructure and Transport has generally acted in line with the OMA decisions regarding the establishment and announcement of the standard processing period for applications of recognition, consideration of application documents that are accepted in English, and the PR activities of the system.
The complainants and others renewed requests to expand the range of acceptable English-written application documents for submission and continue efforts to realize reciprocal recognition of testing data. The Ministry of Land, Infrastructure and Transport is urged to continue efforts to promote applications of recognitions from foreign inspection organizations in accordance with the OMA decisions.
5. Import Procedures
5-(1) Introduction of market principle to port business (Comprehensive Review of OTO Cases)
1. OMA Decisions: March 19, 2003
2. Complainant: Tokyo Chamber of Commerce and Industry
3. Responsible Ministry:Ministry of Land, Infrastructure and Transport
4. Issues Raised
Stevedoring and transportation fees for port business in Japan are high and the handling speed is slow. As the costs of Japanese port business are too high, imported goods are inferior to domestic goods in terms of price competition. In addition, the acceptance of goods is seen as being delayed, as stevedoring services are not adequately available at night and on Sundays. Market principles should be introduced to port business so as to reduce the costs of port stevedoring and transportation and increase the handling speed. Cost reduction is a problem that must be addressed immediately and the government should implement relevant deregulation measures promptly.
Although the government has explained that this is not a problem of government regulation but a labor-management problem, it makes no sense if services such as stevedoring service are not available on a 24-hour basis. The Ministry of Land, Infrastructure and Transport should give guidance to relevant employers’ organizations and the like from the viewpoint of port business users.
5. OMA Decisions (March 19, 2003)
The following measures will be taken concerning introduction of market principles to port business.
(1) Regarding deregulation for provincial ports other than the nine major ports, the responsible ministry will make sure that a conclusion of the reexamination is released by the end of fiscal 2003 and will take measures to promptly implement it.
(2) In order to continue ensuring the effectiveness of the deregulation measures, the responsible ministry will make efforts in such a way that no barriers exist to new entrants.
(3) In order to make Japanese ports win the position of being international distributing bases with international competitiveness, the following measures will be taken for the purpose of realizing the 24 hour/365 day full opening of ports at an early stage:
1]it will be made clear when the results of examining the possibility of realizing the 24 hour/365 day full opening of the port gate will be released and the decision will be steadily implemented and
2]concrete measures will be taken for the purpose of addressing the issue of implementing the full opening of the port gate at an early stage through cooperation between the government and the private sector. And additionally, 3]cooperation with customs clearance and quarantine operations will be reinforced and convenience will be enhanced.
6. Response to OMA Decisions
(1) Regarding deregulation for provincial ports other than the nine major ports, the “Three-Year Program for Promoting Regulatory Reform (Newly Revised),” as decided on by the Cabinet on March 28, 2003, called for “reaching a conclusion within fiscal 2003 for prompt action.”
In response, the Ministry of Land, Infrastructure and Transport created a stakeholders’ “panel on desirable port transportation business” in May 2003 to accumulate considerations. At its eighth meeting on February 19, 2004, the panel compiled a report recommending deregulation measures including 1]a shift from the licensing system to the approval system for new entrants into port transportation business and 2]a shift from the approval system to the notification system for transportation fares and fees.
As noted in the above report, the Council for Regulatory Reform in its “Third Report regarding Promotion of Regulatory Reform” called for “submitting a Port Transportation Business Law revision bill to the Diet within fiscal 2004.” In line with this recommendation, the ministry will launch work on the revision of the Port Transportation Business Law and submit the bill to the Diet within fiscal 2004.
(2) The ministry will continue efforts to ensure the effectiveness of deregulation.
(3) In April 2003, the Ministry of Land, Infrastructure and Transport published a report compiled by the survey committee for promotion of port distribution efficiency, which conducted demonstration tests to realize the 24 hour/365 day full opening of container terminal gates.
In response, the public and private sectors are making integrated efforts to realize the 24 hour/365 day full opening of such gates at major ports.
Mainly for major ports since July 2003, the customs authorities have fully developed an off-hours customs clearance setup (full implementation) with station officials at customs offices for a certain period of time other than business hours every day.
It is desirable for quarantine services to be made available 24 hour/365 day in response to the customs action.
7. Comments by Complainants
(1) (No special comment)
(2) Some people doubt if port stevedoring and transportation business companies are accepting new entrants into the services. They say that, even if new entrants are accepted, market principles have yet to be introduced to the business.
(3) Closure of port gates has reduced the stevedoring efficiency and caused traffic jams on roads close to ports due to massive trucks waiting for loading or unloading. In order to facilitate port business, ports should be kept open 24 hour/365 day with stevedoring service hours expanded.
We would like to see the Ministry of Land, Infrastructure and Transport continuing efforts to promptly realize the 24 hour/365 day full opening of ports.
Although off-hour and holiday customs and quarantine services are made available institutionally, 1]users must make specific requests for such services every time, but hesitate to do so, and 2]extra fees for off-hour services have become an extra burden on users. Off-hour services are thus difficult to use, leading private-sector service providers to limit off-hour and holiday services to exceptional cases. As a result, off-hour and holiday distribution of goods requires overtime allowances and has become expensive.
(Overall) Even if deregulation and efforts for the 24 hour/365 day full opening of ports are making progress, it is hard for port users to get information about specific achievements. We would like to see the ministry promoting these efforts further by devising better measures including presentation of specific goals.
8. Examination Results
During the latest examination, the Ministry of Land, Infrastructure and Transport reported a plan to submit a Port Transportation Business Law revision bill to the Diet within fiscal 2004 to implement deregulation for provincial ports other than the nine major ports.
On other matters subject to the OMA decisions, we have confirmed that the ministry has been acting roughly in accordance with the OMA decisions.
On the other hand, complainants and others have renewed strong requests for the early realization of the 24 hour/365 day full opening of ports and noted that government efforts have failed to produce even a few visible achievements.
The Ministry of Land, Infrastructure and Transport should continue efforts to ensure the effectiveness of deregulation and should cooperate with other relevant government agencies in promptly realizing the 24 hour/365 day full opening of ports in order to make Japanese ports win the position of being international distributing bases with international competitiveness, in accordance withthe OMA decisions.
5-(2) Reduction of charges for using the NACCS System, Review of the rate structure of Air-NACCS (Comprehensive Review of OTO Cases, Fiscal 2001 Problem-Raising Process)
1. OMA Decisions:March 19, 2003 (Comprehensive Review of OTO Cases) / March 20, 2002 (Fiscal 2001 Problem-Raising Process)
2. Complainant: American Chamber of Commerce in Japan
3. Responsible Ministry:Ministry of Finance
4. Issues Raised
Along with the revision of the Air-NACCS in October 2001, the fixed charge system was changed to the metered rate system. As a result, the cost burden has increased on international courier service companies that handle a large number of small-lot home deliveries. A neutral organization should be set up to cautiously review the Air-NACCS user charge system from a multifaceted viewpoint.
Charges for using NACCS are determined in a way that the total expenses can be covered. Therefore, efforts should be made to reduce the total expenses by raising the operation efficiency through methods such as effective use of competitive bidding and the outsourcing of operations in order to cut the charges.
NACCS users cannot use any service other than NACCS. The NACCS Center should promote information disclosure and enhance the transparency of charges in order to contribute to users’ surveillance on charges.
5. OMA Decisions
(Comprehensive Review of OTO Cases: March 19, 2003)
The following measures will be taken to suit the reduction of charges for using the NACCS system in the NACCS center.
(1) At the same time of further disclosing information and improving the transparency of charges for using the system, efforts will be made to concretize the measures that will be promptly taken through the full-scale introduction of competitive bidding for the system development and the outsourcing of operations, thereby enabling operations to be conducted at a higher efficiency and reasonable cost, and furthermore, measures will be taken to reduce the total expenses including administration overhead, such as adequate reexamination of the system development and management from the cost effectiveness viewpoint.
Also, charges for using the system will be reviewed in a flexible way according to the economic and financial conditions and in such case, not only will there be an explicit rule to return surplus funds and reserves to users, the result of reducing various expenses included in charges of using the NACCS system will be immediately reflected in charges for using the system thereby leading to a further charge reduction.
(2) A third party panel consisting of experts and users regarding the charges for using the Air-NACCS system will be set up at the earliest possible time in fiscal 2003. This third party panel will study matters on the model of charges for using the Air-NACCS system including the items that will be studied in the future and the direction in which the review will be made, e.g., the method to reduce costs and a charge system for which the factor of economies of scale is taken into account.During the process of the study, along with the release of the minutes from meetings, both neutrality and transparency will be secured to the greatest extent, such as disclosure of information in a wide range and permission for observers to attend the meeting if necessary.
Furthermore, regarding Sea-NACCS, too, in order to study the model of charges for using the system from a multifaceted viewpoint and a neutral standpoint, a third party panel consisting of experts and users will be set up in the earliest possible stage just as in the case of Air-NACCS.
(Fiscal 2001 Problem-Raising Process: March 20, 2002)
The following measures will be taken regarding the rate structure of NACCS.
(1) With regard to NACCS, information disclosure will be further promoted and the transparency of user fees will be improved. With regard to thorough implementation of competitive bidding for system development and the outsourcing of some operations, the measures that should be promptly implemented starting in FY2002 will be made specific in order to make business operations more efficient and reasonable and further slash user fees.
(2) With regard to NACCS user fees, steps will be taken to establish a new way of revising the fee structure, including the prompt establishment of a neutral study group composed of well-informed persons that will review the fee structure from various aspects, including how to slash total costs and how to ask the users to pay costs. With regard to the Air-NACCS, the user fee structure will be revised by September 2004 at the latest, when the violent change-relaxation measures expire. In doing so, reasonable fee-setting methods will be studied by taking economies of scale into considration.
6. Response to OMA Decisions
(1) The NACCS Center has made efforts to improve the transparency of user charges through information disclosure, including the acceptance of public comments on charge revisions and the provision of calculation grounds and reasons for charge revisions.
Regarding the improvement of efficiency and fairness of business operations, a medium-term business program, which the NACCS Center has worked out on its transformation into an independent administrative agency, sets numerical targets for reorganization and reduction of the staff size, general administration overhead and business expenses, and calls for cutting system expenses through a positive expansion of the range of deals for competitive bidding for procurement of a next-generation computer system.
In April 2002, the NACCS Center projected stable operation of the system and a rising number of NACCS users and implemented substantial reductions in NACCS user charges, including more-than-50% cuts in charges for major services, through necessary procedures like public comments in a bid to channel accumulated surpluses to users. If a revision of NACCS user charges is found necessary due to economic changes or any other reasons in the future, the center will hear from users and take necessary measures such as a charge revision. The purposes of the OMA decisions are specified in the three-year business program.
(2) Regarding the desirable Air-NACCS user charges, the “Air-NACCS User Charge Consideration Conference,” comprising of users and experts, has been created to examine the charges from a neutral viewpoint. The conference held the first meeting on December 16, 2003, and the second on January 30, 2004, and plans to have the third on March 11, 2004.
The conference also includes observers and posts the minutes of its meetings on the NACCS Center website to ensure its neutrality and transparency.
Based on considerations at the Air-NACCS User Charge Consideration Conference, the NACCS Center plans to create a third-party organization on Sea-NACCS user charges.
(Others) Since the OMA decisions were made on the review of the Air-NACCS user charge system in March 2002, the NACCS Center has tried to consider and implement reorganization, reduction of employees and other measures to further reduce its total expenses. After examination by the independent administrative agency evaluation committee, a third-party organization, the medium-term business program, as worked out on the center’s transformation into an independent administrative agency, has set numerical targets regarding cost-cutting efforts.
The NACCS Center has negotiated electricity and communications rate cuts with NTT Data Corp. and achieved these cuts. The center is continuing negotiations to further reduce these rates.
Of the NACCS Center’s total expenses, the state shoulders costs for import declarations and other public-sector procedures that the state must undertake. Appropriate charges are collected from NACCS users to cover mutual use of input cargo data between users,automatic notification of import permit information to bonded areas and the like, tax calculation for import declarations and other convenience-improving services that benefit users. Based on this idea, the center calculates user charges. Therefore, for example, increasing the state’s share of NACCS costs to reduce charges collected from private-sector NACCS users will force taxpayers in general to shoulder costs for processing private-sector business operations, thus reversing the user-pays principle. Such measure is not appropriate.
7. Comments by Complainants
The OMA decision called for a third-party organization to consider the NACCS user charge system while taking into account the economy of scale. At the “Air-NACCS User Charge Consideration Conference” as the third-party organization, a dominant view says: “The metered rate system is a fair, reasonable charge system and very satisfactory. It is a fair pricing system and any charge cuts should be distributed fairly (irrespective of large, medium or small users).” This indicates that our proposals for “large-lot discounts, capped charges and ceilings” would never be approved.
The NACCS Center transformed itself into an independent administrative agency in October 2003 and its medium-term business program callsfor a 13% cut in general administration overhead and an 8% reduction in business expenses. However, we believe the problem is that the center has commissioned system development and management to NTT Data under an extra-long-term contract lasting for eight years and pays more than 80% of its revenue to NTT Data. The center should renegotiate the contract with NTT Data to reduce the payments in a bid to cut overall expenses.
As tariffs and consumption tax on import cargoes are paid upon customs clearance, NACCS users are forced to make such payments on behalf of real payers. On the other hand, the Ministry of Finance is positioned to collect tariffs and consumption tax automatically through the NACCS system, benefiting from the system. Therefore, the state’s share of NACCS costs should be increased to reduce charges for use of NACCS import services.
8. Examination Results
During the latest examination, the Ministry of Finance reported that the NACCS Center, which manages and controls the NACCS system, has been making efforts to reduce NACCS user charges, including the establishment of numerical cost-cutting targets in its medium-term business program.
It has also been reported that the Air-NACCS User Charge Consideration Conference has been created as a third-party organization to consider Air-NACCS user charges. We have thus confirmed that the ministry has taken actions generally in accordance with the OMA decisions.
On the other hand, the complainants and others have made requests for measures to reduce NACCS Center costs and user charges.
We request that the ministry consider the requests from the complainants and others, and opinions of MAOC members, to report arguments at the MAOC to the Air-NACCS User Charge Consideration Conference, to continue appropriate efforts to implement the OMA decisions, and to report conclusions of considerations on NACCS user charges to the MAOC through the OTO secretariat in a timely manner.
5-(3) Simplification and acceleration of import clearance procedures (Comprehensive Review of OTO Cases)
(Improvement of the simplified declaration system)
1. OMA Decisions:March 19, 2003
2. Complainant:Hiroshima Chamber of Commerce and Industry
3. Responsible Ministry:Ministry of Finance
(Promotion of the one-stop service (single-window system))
1. OMA Decisions:March 19, 2003
2. Complainants:--------*
3. Responsible Ministry:Ministry of Finance
*There were multiple complainants, including the Tokyo Chamber of Commerce and Industry, that raised the “improvement of NACCS and other customs clearance procedures using the Internet” (Fiscal 1999 Problem-Raising Process).
4. Issues Raised
In order to enhance the efficiency of the physical distribution system in Japan and reduce costs in terms of time and economic resources, it is important to simplify and accelerate import clearance procedures.
• Improvement of the simplified declaration system
The simplified declaration system, as introduced in March 2001, is for declaration procedures according to which an approved person, on the condition that he strictly comply with the laws regarding the specified types of cargoes, separates the cargo-receiving declaration from the tax return that is completed after he receives the cargo. The cargoes to which this system is applicable are specified as “goods that are imported on a continual basis,” and more specifically, those that have been imported at least 24 times in the recent one year. The system is not applicable if goods are not imported so frequently. The number of times for which the goods specified by this system are imported should be eased, for example, to 30 times in three years.
• Promotion of one-stop service (single window system)
From the viewpoint of promoting the simplification and acceleration of import clearance procedures, the computerization of various import procedures is an important factor. Many complaints related to the computerization of import clearance procedures were raised even in the past OTO cases, including the “improvement of NACCS and other customs clearance procedures using the Internet.” This time, in particular, the government is making preparations for the commencement of one-stop service (single-window system) in terms of export, import and port procedures. Inline with the efforts aimed at the realization of the earliest possible operation of one-stop service (single-window system) and from the viewpoint of system users’ convenience, the government should not limit its efforts to the interconnection of the existing systems but should thoroughly review all the procedures such as examining the overlapped operations and simplifying procedures.
5. OMA Decisions (March 19, 2003)
The following measures will be taken concerning simplification and acceleration of import clearance procedures.
(1) In order to enable more importers to use the simplified declaration system, the responsible ministry will immediately review the necessary conditions such as specifying the goods and providing a security, and in particular the responsible ministry will revisethe specifying condition from “goods for which and approval for import has been obtained for at least 24 times in the recent one year” to “goods for which an approval for import has been obtained at least six times in the recent one year.”
(2) In order to simplify and accelerate import procedures, the responsible ministry, in cooperation with other government departments concerned, will actively promote the one-stop service (single window system) regarding export and import and port-related procedures from the viewpoint of computerizing administrative procedures. Efforts will be made to put the one-stop service (single window system) into operation even one day earlier, and the system will be put into operation by the end of July 2003 at the latest. Further, from the viewpoint of system users, the government will not limit its efforts only to the interconnection of the existing systems but will thoroughly review all the procedures such as examining the overlapped operations and simplifying procedures and even after the system is put into operation, the government will continue to pay attention to users’ requests and make readjustments from the users’ viewpoint.
6. Response to OMA Decisions
(1) The measure was taken through the fiscal 2003 tariff revisions. (Article 4-8 of the Customs Law Implementation Ordinance: Cabinet Ordinance No. 143 on March 31, 2003). The revisions were implemented as from April 2003.
(2) Relevant government agencies created their liaison conference on export, import and port procedures to consider building the single-window system for export, import and port procedures in the autumn of 2001 and studied system specifications and the like. As a result, the single-window system was realized on July 23, 2003.
Even after the realization of the single-window system, the relevant government agencies have been continuing to hear from private-sector users of the system through the liaison conference on export, import and port procedures and other forums.
7. Comments by Complainants
・ Improvement of the simplified declaration system
The relaxation of the conditions for the simplified declaration system should be welcomed by importers.
8. Examination Results
Through the latest examination, we have confirmed that the OMA decisions have been steadily implemented, including the review of the condition for continual imports for the simplified declaration system under the fiscal 2003 tariff revisions, and the realizationof the single-window system in July 2003.
The Ministry of Finance is expected to continue to positively tackle the review of import and port procedures, including overlapped operations, from the viewpoint of users’ convenience in order to further simplify and accelerate import clearance procedures in accordance with the OMA decisions. In addition to interconnections of the existing systems, the relevant government agencies are expected to cooperate in the prompt and further promotion of the one-stop service.
The government is expected to quickly address problems regarding Japan’s ratification of the Convention on Facilitation of International Maritime Traffic (FAL Convention) in respect to the simplification and acceleration of import clearance procedures.
5-(4) Realization of 24 hour/365 day customs and quarantine services(Comprehensive Review of OTO Cases)
1. OMA Decisions:March 19, 2003
2. Complainant:Tokyo Chamber of Commerce and Industry
3. Responsible Ministry:Ministry of Finance; Ministry of Health, Labor and Welfare; Ministry of Agriculture, Forestry and Fisheries
4. Issues Raised
When importers go through import procedures on holidays and during the night outside the customs office hours (8:30-17:00), they must obtain approval for overtime services during the office hours and pay extra charges for overtime services. Instead of the overtime service system, the responsible ministry should adopt extended office hours for customs, allowing import procedures to be taken 24 hours a day. Congested seaports and airports are particularly in need of prompt action for the implementation of 24-hour services.
Extra charges are required for services provided outside of office hours. The hours for off-hour services should be clarified. Because the services provided outside of office hours are the same as those during the regular office hours, the extra charges should be abolished.
Under a measure that is closely related to the issues above, quarantine services should be implemented 24 hours a day and 365 days a year to bring about the full effect of the 24 hour/365 day customs services.
5. OMA Decisions (March 19, 2003)
The following measures will be taken to realize 24 hour/365 day customs and quarantine services.
(1) The responsible authorities will strive to elevate the quality of customs and quarantine services to an international level by implementing 24 hour/365 day services at major ports and airports, to accurately assess demand, and to take necessary measures at the earliest possible time. Also, they will review working hours and conditions, and outsource services as much as possible. They will take necessary measures to further promote efficiency and laborsaving by developing IT systems.
(2) The responsible authorities will coordinate closely in order to elicit the best possible effect of implementation of 24 hour/365 day customs and quarantine services and will take necessary measures to implement such services at least in places where constant demand is expected.
(3) The Ministry of Finance will continue the service outside office hours at the seven harbors where trial services is now underway after the end of March 2003. The Ministry of Health, Labor and Welfare and the Ministry of Agriculture, Forestry and Fisheries will maintain close coordination with related services in providing quarantine services.
(4) The Ministry of Finance will consider the reduction of handling charges, including possible elimination, for overtime services and take necessary measures accordingly in view of implementation of 24 hour/365 day services.
6. Response to OMA Decisions
(1) At customhouses for major and other ports where demand exists for off-hour customs services, the Ministry of Finance has implemented full-fledged off-hour customs services by stationing customs officials during certain hours other than office hours since July 2003. At other customhouses, the ministry has developed and advertised liaison frameworks to accurately meet the demand for off-hour customs services.
As for customs service hours and frameworks, the ministry has had fully implemented off-hour service frameworks mainly at major ports since July 2003. Regarding further promotion of information technologies, the ministry has introduced the single-window system to allow a single input-transmission action tocover all necessary export and import, and port-related procedures since July 2003. In the future, it will continue efforts toboost the efficiency of services and the convenience of service users through greater use of information technologies and other actions. [Ministry of Finance]
At present, the Ministry of Health, Labor and Welfare quarantine stations at major ports, which serve as the window for procedures for notification of food and other imports, are closed on Saturdays, Sundays and other holidays. In line with the development ofoff-hour customs services, however, quarantine stations have established off-hour liaison contacts (open between 17:00 and 21:00 on business days, and between 8:30 and 17:00 on Saturdays, Sundays and other holidays) for timely response to requests since July 2003.
Quarantine stations accept food or other import notifications up to seven days before the arrivals of goods. For goods that are not subject to inspection or expected to cause food sanitation problems, notification certificates are issued even before the arrivals of goods.
While the present staff has difficulties implementing a shift system to meet the 24 hour/365 day services, quarantine stations will continue to respond appropriately to such services while trying to improve the efficiency of their services through measures such as effective use of the prior notification system. In fiscal 2004, they will try to promote appropriate personnel distribution, meeting the demand for administrative services, through such measures as renewal of the Food Automated Import Notification and Inspection Network System (FAINS) and an increase in food sanitation inspectors at major ports, in a bid to respond to the 24 day/365 day services.
In May 2003, the Food Sanitation Law was revised to allow private-sector entities to undertake ordered inspections that had earlier been limited to public corporations.
In May 2003, the Food Sanitation Law was revised to allow registered inspection organizations to undertake testing operations for monitoring inspections, and enhancing and increasing the efficiency of inspections on foods and other imports.
The ministry realized the single-window system for export, import and port-related procedures in collaboration and cooperation with other relevant government agencies in July 2003. [Ministry of Health, Labor and Welfare]
The Ministry of Agriculture, Forestry and Fisheries has already been conducting off-hour animal and plant quarantine services as requested by importers or the like in advance. As the ministry has been authorized to increase livestock and plant quarantine inspectors to cover off-hour services at major ports where persistent requests exist for extending service hours, it plans to extend quarantine service hours by October 2004 to keep in step with customhouses.
The ministry has promoted outsourcing of inspection procedure information system management and some other operations of the animal and plant quarantine services to the private sector. Since fiscal 1997, the ministry has developed an online system for inspection application procedures and connected it to the customs clearance and food sanitation systems through interfaces torealize the one-stop service for import procedures at seaports and airports. Furthermore, the ministry has implemented a single-window system linking seaport procedure systems (for the Ministry of Land, Infrastructure and Transport, the Ministry of Economy, Trade and Industry, the Ministry of Justice, local governments, etc.) since July 2003. In the future, the ministry intends to further increase the service’s efficiency through acceleration of animal and plant quarantine procedures and laborsaving efforts for these procedures. [Ministry of Agriculture, Forestry and Fisheries]
(2) Since July 2003, off-hour customs clearance services have been implemented on a full-fledged basis mainly for major ports. [Ministry of Finance]
While the present staff has difficulties implementing a shift system to meet the 24 hour/365 day services, quarantine stations will continue to respond appropriately to such services while trying to improve the efficiency of their services through measures such as effective use of the prior notification system. In fiscal 2004, they will try to promote appropriate personnel distribution, meeting the demand for administrative services, through such measures as renewal of the Food Automated Import Notification and Inspection Network System (FAINS) and an increase in food sanitation inspectors at major ports, in a bid to respond to the 24 day/365 day services. [Ministry of Health, Labor and Welfare]
As the ministry has been authorized to increase livestock and plant quarantine inspectors to cover off-hour services at major ports where persistent requests exist for extending service hours, it plans to extend quarantine service hours by October 2004 to keep in step with customhouses. [Ministry of Agriculture, Forestry and Fisheries]
(3) Based on trial off-hour services at customhouses, the ministry implemented off-hour customs clearance services mainly at major ports on a full-fledged basis in July 2003. [Ministry of Finance]
In trial off-hour customs clearance services, quarantine stations cooperated with customhouses to meet the request for extended service hours in the event of delays in the arrivals of goods. In line with the development of off-hour customs services, in July 2003, quarantine stations established off-hour liaison contacts (open between 17:00 and 21:00 on business days, and between 8:30 and 17:00 on Saturdays, Sundays and other holidays) for timely response to requests. [Ministry of Health, Labor and Welfare]
As the ministry has been authorized to increase livestock and plant quarantine inspectors to cover off-hour services at major ports where persistent requests exist for extending service hours, it plans to extend quarantine service hours by October 2004 to keep in step with customhouses. [Ministry of Agriculture, Forestry and Fisheries]
(4) Extra charges for off-hour customs clearance services will be lowered from 7,800 yen to 4,100 yen in fiscal 2004 charge revisions. For special structural reform zones, the extra charges for off-hour customs clearance services have been halved. [Ministry of Finance]
No extra charges have been collected. No plan exists to collect extra charges from service users when the 24 hour/365 day services are developed. [Ministry of Health, Labor and Welfare]
At present, no inspection charges have been collected for animal and plant quarantine services. [Ministry of Agriculture, Forestry and Fisheries]
7. Comments by Complainants
(1), (2) Although we have seen the development of off-hour customs clearance services, the establishment of liaison contacts and other improvements, we would also like to see the relevant ministries continuing efforts to realize the 24 hour/365 day services.
(4) We appreciate measures to reduce extra charges for off-hour customs clearance services, including a 50% cut in special structural reform zones as occurred in April 2003 and a planned reduction in April 2004. We would like to see efforts continuing to reduce or eliminate such charges, including effective use of outsourcing of operations to the private sector.
(Overall) The 24 hour/365 day customs clearance and quarantine services are indispensable for Japanese ports’ international competitiveness. We would like to see continued efforts to reduce costs and realize the 24 hour/365 day services.
8. Examination Results
Through the latest examination, we have received reports from the responsible ministries about efforts to expand off-hour services, increase service efficiency and save on labor, and confirmed that they have been taking actions generally in line with the OMA decisions.
The responsible ministries are called on to continue efforts to realize the 24 hour/365 day customs clearance and quarantine services in accordance with the OMA decisions and in consideration of comments by complainants and the like.
In this respect, we expect the responsible ministries to pay due heed to an opinion at the MAOC calling on them to consider specific personnel and costs that would actually be required for realizing the 24 hour/365 day services.
Furthermore, we expect the responsible ministries to cooperate in promoting Japan’s early ratification of the Convention on Facilitation of International Maritime Traffic (FAL Convention) that has been discussed in the examination of the “simplification and acceleration of import procedures.”
III. Consideration of Important Specific Issues
OTO No. 656: Promotion and Facilitation of New Technology (Anti-Termite Technology) Introduction under the Housing Quality Assurance Act
1. Date of Acceptance:December 12, 2002
2. Complainant:Embassy of the United States in Japan (proxy complaint)
3. Responsible Ministry:Ministry of Land, Infrastructure and Transport
4. Description of Complaint
Under the Housing Quality Assurance Act (implemented in April 2000, hereinafter referred to as the “Quality Assurance Act”), the Japanese housing performance indication standards and evaluation method standards (hereinafter referred to as "housing performance indication standards and the like") have been established through the notification by the then Ministry of Construction to start the housing performance indication system.
The housing performance indication system provides common rules for improving the indications of housing performances, allowing consumers to compare housing performances. It also leads housing performances indicated in evaluation reports to be put into housing contracts in principle in order to realize indicated performances.
However, the present housing performance indication system sticks to existing technologies and has failed to smoothly evaluate and adopt new technologies.
Specifically, as for anti-termite measures to help prevent the deterioration of houses, the system subjects chemical treatment and other existing technologies to evaluation, but fails to cover the bait system, which has quickly diffused in the United States in the past years. The Ministry of Land, Infrastructure and Transport argues that the bait system is outside the present housing performance indication system and that it is inappropriate to subject the bait system to evaluation.
This had impeded the bait system’s diffusion in the housing market, serving as an effective barrier against imports of bait system products and affecting the business activities of a Japanese subsidiary of the U.S. firm handling the bait system.
In order to prevent the housing performance indication system from impeding bait system products imports and business activities of the Japanese subsidiary, the Ministry of Land, Infrastructure and Transport should consider subjecting the bait system to the housing performance indication system and take other necessary actions.
5. 20th Meeting of Grievance Resolution Committee (September 25, 2003)
(1) Views of Responsible Ministry
The housing performance indication system has been created under the Quality Assurance Act, which was enacted in 1999 against the background of the so-called defective house problem.
Under the housing performance indication system, third-party organizations, which are designated by the Minister of Land, Infrastructure and Transport as neutral and fair and as having expertise in housing, may check drawings and specifications to confirm whether houses for planned construction or purchases are designed to meet the performance requirements of consumers who are not experts in housing. These organizations also conduct on-site inspections of houses upon basic bar arrangement, upon completion of building frameworks, just before interior finish work and upon finalcompletion, and provide objective information on housing performances to consumers.
Therefore, housing performances subject to evaluation by such organizations are limited to those that are highly worthy of information to consumers other than housing experts, are specified in drawings for objective examination by third parties during the design phase, can be realized in construction as specified in drawings after design evaluation and can be objectively confirmed as realized.
The housing performance indication system is a voluntary system for providing information to consumers who are supposed to have no expertise. As a matter for fact, the absence or presence of the system or evaluation ratings do not necessarily determine whether any houses can be constructed.
On the other hand, the bait system is understood as designed to occasionally check whether termites exist and set up chemicals for the elimination of any termites that are found. This is a housing-related service, characteristically different from any housing performance that can be confirmed during the examination of drawings and specifications and on-site inspection of construction as specified above.
The service is understood as being provided by bait system providers after houses are delivered. However, the housing performance indication system’s significance rests with third parties’ on-site inspection to confirm the implementation of construction as designed. (Housing service providers, as a matter of course, promise to construct houses in accordance with drawings and specifications and such promises themselves are not subject to evaluation. Only real construction results (facts) are subject to checkups. None can evaluate any service that has not been done. The bait system depends on future service provision.) From this viewpoint, the bait system is not suitable for the housing performance indication system.
(The housing performance evaluation system does not cover all housing-related services. Nor does it indicate that services out of the system’s coverage are ineffective.)
In addition, the bait system, as discussed above, depends on contracts between bait system providers and house owners; and third-party organizations undertaking evaluation under the housing performance indication system cannot know house owners’ adoption or non-adoption of the bait system, or provide information other than what house owners can know about the bait system. Therefore, the ministry believes that there is no need or reason to subject the bait system to the housing performance indication system.
(2) Conclusion of Considerations
It is reported that the bait system subject to this complaint has diffused quickly over the recent years and has been admitted under the construction standards in the United States. This can therefore be conceived as a reliable anti-termite system.
It is also reported that the bait system secures its anti-termite effect while using less chemical than conventional anti-termite measures depending on chemical treatment and is friendly to humans and the environment.
In spite of these features, the Ministry of Land, Infrastructure and Transport has explained that the bait system cannot be qualified for the housing performance indication system because it consists of continuous services and cannot be confirmed objectively in the house design and construction phases.
However, whether the system is qualified for the housing performance indication system is of great significance to real house transactions. From the viewpoint of the market for anti-termite measures, chemical treatment can be viewed as being given more favors than the bait system. From the viewpoint of consumers, there can be a complaint that consumers have been deprived of an opportunity to choose the bait system when they buy new houses.
If a government-created system gives unfair treatment to some products or companies and potential disadvantages to consumers irrespective of legislative purposes, it is unreasonable for the government to conclude that such unfairness or disadvantages do not have to be addressed because they are not environed or suitable under any law or institution.
For example, it is reported that maintenance and management conditions are set to allow the bait system to be admitted under the construction standards in the United States. Therefore, based on such certification method, the Ministry of Land, Infrastructure and Transport should consider measures to solve the unfair treatment, including flexible interpretation of the present institution and creation of a new institution.
6. 21st Meeting of Grievance Resolution Committee (January 22, 2004)
(1) Comments by Complainants
We believe that if the bait system were to be qualified for the housing performance indication system, inspection organizations would be required 1] to confirm the installation of underground termite detectors for the bait system in the vicinity of a house in evaluation of drawings and specifications, and 2] to confirm the installation of termite detectors for the bait system with bait logs as instructed in drawings and specifications in the fourth inspection (in this phase, a bait system service provider’s commencement of monitoring operations may be confirmed).
As for the evaluation of performances of the bait system, a Japanese organization for examination of wood preservatives is now considering technology evaluation standards for the bait system. Those meeting the standards should be evaluated as “building-protecting systems” under the housing performance indication system. We believe it is realistic under present law to have evaluation done by inspection organizations certified under the housing performance indication system.
(2) Views of Responsible Ministry
If the bait system has an effective termite-controlling performance and meets the conditions 1] that the system can be put into drawings and specifications and 2] that inspectors are allowed to definitely confirm the installation of relevant devices asinstructed in drawings and specifications through on-site inspections, it may be qualified for evaluation under the housing performance indication system. The ministry may have to coordinate details with the complainants. The basic framework for evaluation of the bait system under the housing performance indication system is as follows.
1. How to position the bait system in evaluation standards
If, after examination by academic experts, a fair, neutral organization confirms that the bait system is a ground-based anti-termite measure that effectively controls termites, it will be interpreted as meeting 5-3-1(3) A1] d (iii) of the evaluation standards (MLIT Notice No. 1347, 2001).
2. How to evaluate the bait system in examination of designed housing performances
In examination of designed housing performances, the bait system will be evaluated through confirmation of the following three points in drawings and specifications attached to applications for evaluation.
1] The bait system is used as a ground-based termite-controlling measure.
--> Confirmation is based on design explanations.
2] The bait system effectively controls termites.
--> Confirmation is based on specifications that describe the confirmation of such performance through examination by a fair, neutral organization (the name of such organization and the like) and are accompanied by a copy of written examination results. The copy of written examination results specifies rules for installation of termite detectors for the bait system.
3] Termite detectors for the bait system are installed in accordance with the installation rules.
--> Confirmation is based on the copy of written examination results and the installation drawings.
3. How to evaluate the bait system in examination of housing performances after construction
In examination of housing performances after construction, the bait system will be evaluated through confirmation of the following two points during on-site inspections. On-site inspections may be carried out at anytime during the period provided in the evaluation method standards, as long as the following two points can be checked.
1] Pre-designated devices are used as termite detectors for the bait system.
--> Termite detectors buried underground are visually confirmed as devices as specified in the copy
of written examination results.
2] Termite detectors for the bait system are buried at pre-designated locations.
--> Termite detectors are visually confirmed as installed as instructed in installation drawings.
(3) Examination Results
Based on deliberations at the previous meeting of the Grievance Resolution Committee and subsequent proposals by the complainants, the Ministry of Land, Infrastructure and Transport indicated that the bait system can effectively be admitted for evaluation under the housing performance indication system through flexible enforcement of relevant laws. We appreciate this response as prompt and positive.
We would like to see the Ministry of Land, Infrastructure and Transport and the complainants cooperating to deepen their communications and consider measures required for evaluating the bait system under the housing performance indication system.
We would also like to see the Ministry of Land, Infrastructure and Transport trying to communicate with other relevant agencies and to lay the groundwork for early implementation of the plan indicated at the Grievance Resolution Committee.
We ask the Ministry of Land, Infrastructure and Transport to give timely reports to the Grievance Resolution Committee through the OTO secretariat about the implementation of the plan.
We also ask the Ministry of Land, Infrastructure and Transport to continue efforts to fully respond to technological changes in enforcement of the Quality Assurance Law.