The Cabinet Office, government of Japan ＞ Top page of OTO ＞ Reorganization of the Office of the Trade and Investment Ombudsman
(Provisional Translation)
Policy Actions to Market Access Issues as Concerns Standards, Certification and Others (July 18, 1997)
July 18 , 1997
Office of Market Access
I. Reforming the Economic Structure and Improving Market Access
With progressing integration of the world economy, and in an era when people, goods, capital and information move freely, Japan faces the urgent need to create an open, world-leading socioeconomic system. The government, which is currently reforming the economic structure in conjunction with administrative and fiscal reform, must take the initiative to improve market access as part of the overall effort to effect structural reform of the economy. That is, increase in imports and foreign investment due to improved market access will expand consumers' variety of choice and contribute to reducing the gap between foreign and domestic prices. At the same time, this will contribute to rectifying the high cost structure in industry, and through various forms of competition among domestic and foreign enterprises this will help invigorate and raise the efficiency of our economy. In this age when enterprises can actively choose which countries to operate in, improved market access will enhance the attractiveness of Japan's business environment to foreign enterprises and also help prevent deindustrialization.
II. Activities of the Office of the Trade and Investment Ombudsman (OTO)
Since its establishment in 1982, the Office of the Trade and Investment Ombudsman (OTO) has processed appropriately 800 specific complaints and issues presented, making a substantial contribution to improved market access. In particular, work of the OTO has made steady progress recently in a number of areas where major revisions, including changes to the relevant laws, are currently being implemented.
Against this background, on this June 18, the Market Access Ombudsman Council submitted proposals based on its review of complaints and problems raised since the establishment of the OTO concerning standards, certification and others, and on its deliberation of elements they share in common.
III. Basic Stance of the Policy Actions
Based on the recognition that improving market access is a crucial requirement for fostering an open, world-leading socioeconomic system, which would be responsive to the future trend of the world, the Office of Market Access will respect the above proposals to the greatest extent possible and take the necessary actions in order to more actively work to improve market access as structural reforms to the economic system. In particular,
(1) the OTO will process specific complaints and proposals brought before it in accordance with the viewpoints described below. When doing so, it will study the necessary measures for relevant systems and will endeavor to take policy actions based on those. And
(2) the status of implementation will be reported to the Market Access Ombudsman Council as necessary.
Description
(1) Viewpoint in setting specifications and standards
1) Reevaluating the need for and the content of specifications and standards
Timely and appropriate reevaluations of both the need for and the content of specifications and standards will be conducted in the light of, among other factors, technological advances, requests for deregulation, diversification of consumer needs, and demands to harmonize specifications and standards with international norms etc. When this is done, a comprehensive review of specifications and standards in various systems will be undertaken, by extensively incorporating the perspectives of all relevant parties, including producers, users and consumers as well as by carrying out a "zero-based" (overall and complete) review. In setting, amending and abolishing specifications and standards, the ministries and agencies concerned will cooperate with each other to harmonize JIS specifications as much as possible with technical standards in mandatory regulations, conditions for government procurement, and so on .
2) Setting appropriate specifications and standards for new products
When specifications and standards applicable to new foreign products do not exist in Japan, wide-ranging revisions of existing specifications and standards will be widely review to accommodate the advent of new products, as necessary, in order to contribute to consumer benefit.
Further, considerations will be made to incorporate private sector specifications into the newly set government specifications.
3) Clarifying specifications and standards
Specifications and standards will be prescribed as clearly and precisely as possible to minimize the room for administrative discretion and to simplify the conformity assessment process.
4) Conformance with international specifications and standards
When appropriate standards set by international standardization bodies such as ISO/IEC exist, those standards shall be used as a basis for corresponding standards in Japan. Further, rather than simply wait for international standards to be completed, domestic specifications and standards will be harmonized with international norms as quickly as possible by preparing or revising domestic specifications and standards even while corresponding international standards are still at the drafting stage.
In areas where there are no international norms, Japan will actively contribute to the work of formulating them, and policy actions will be taken to be clearly explicable on the pertinence of any specifications and standards unique to Japan.
5) Actively promoting performance-based specifications and standards
To enable distribution of a diverse range of products, including foreign products, a shift will be made from highly prescriptive to performance-based specifications and standards, as far as possible. At the same time, the nature etc. of conformity assessment bodies will be evaluated.
(2) Viewpoint on measures relating to conformity assessment with standards and specifications
1) Fostering the principle of competition in conformity assessment
The work of conformity assessment will be opened up widely to the private sector to increase the number of organizations involved and therefore allow the principle of competition to reduce the costs and improve the quality of inspection, certification and so on.
2) Making active use of overseas conformity assessment bodies and promoting mutual recognition
In order to avoid additional costs due to double inspection on importation, the use of reputable conformity assessment bodies in other countries will be taken after rapid study on that. When doing so, ISO/IEC guidelines etc. concerning conformity assessment will be used, and testing organizations which meet those standards will be allowed to perform conformity assessment.
Active steps will also be taken to promote mutual recognition with other major countries. Further, after clarifying the relationship between the government and conformity assessment bodies, and making reference to the corresponding efforts of the EU and so on, prompt action will be taken to establish devise a conformity assessment system that gives due consideration to market access.
3) Shifting to a system eliminating the requirement for third-party certification
Conformity assessment will be greatly simplified by adopting a system which, in principle, eliminates the requirement for third-party certification and is based on self-verification according to clearly defined standards and specifications. For foreign or small-to-medium-size businesses without sufficient reliability or testing/inspection capabilities, however, systems for voluntary test laboratory authorization and third-party certification will be established. Similar measures will be actively adopted as much as possible for other systems as well, including utilization of the new certification systems introduced by amendments to the Industrial Standardization Law.
To ensure the transparency, in cases where third-party certification is not required, that third-party certification is not legally required will be widely notified established at the distribution stage.
4) Simplifying and speeding up conformity assessment procedures
In areas where government or other conformity assessment is essential, efforts will be made, as much as possible, to simplify and speed up the process and extend the time intervals between inspections. Further, wherever businesses' quality control and related systems are the subject of conformity assessment, such evaluation, in principle will be simplified and speeded up by adopting international standards (ISO 9000 series).
(3) Viewpoint on measures relating to private-sector business practices
1) Measures regarding specifications- and standards-setting and conformity assessment conducted by private organizations
1] Cases based on legal authorization
The ministries and agencies concerned will, in addition to adhering the principles set out in (1) and (2) above, apply appropriate laws to promptly rectify any improprieties such as excessive dependence on industry officials in their respective industries.
In regard to non-profit organizations, the measures in "Standards for Delegating Testing, etc. to Non-profit Organizations for the Benefit of the Public" (adopted by the Cabinet on September 20, 1996), which are scheduled to be adopted by the end of fiscal year 2000, will be implemented as soon as possible. In particular, measures will be taken promptly in relation to private organizations which have been the subject of complaints dealt with in the past by the OTO.
2] Cases based on no legal authorization
In regard to private organizations acting autonomously, since in practice they may impede the import of foreign products and foreign direct investment in Japan when their standards do not conform with international rules, attention will be paid in the application of government systems and in the involvement of those organizations in certification activities, to avoid misunderstandings that their voluntary certification activities are those of the government.
Further, in regard to non-profit organizations, the competent government ministries will provide guidance to ensure that their conformity assessment activities are appropriately from the standpoint of market access, and in particular, will ensure that their publicity materials etc. with avoiding misunderstanding about the government's connection with those activities.
2) Eliminating anti-competitive business practices through vigorous enforcement of the Antimonopoly Act
In order to promote fair and free competition among domestic and foreign businesses alike, the Antimonopoly Act will be vigorously applied. The government will seek to correct anti-competitive practices in the private sector by investigating actual situations when necessary and vigorously enforcing the Antimonopoly Act, and also promptly rectifying anti-competitive administrative guidance if it gives rise to the anti-competitive practices in the private sector.
In particular, where setting of specifications and conformity assessment by private organizations is concerned, whose activities may work to restrict competition, depending on their contents or application, the Antimonopoly Act will be vigorously enforced.
(4) Viewpoint on measures for adding transparency to the domestic system
1) Fully applying the spirit of the Administrative Procedures Law
To enhance the transparency of administrative procedures, policy actions will be taken to give maximum application to the spirit of ensuring administrative transparency that accompanied the enactment of the Administrative Procedures Law, such as in voluntarily formulation and publication of standards for examination, penalties and so on, even if there is no legal obligation
to do so.
The spirit of the Administrative Procedures Law that is to ensure fairness and maximize transparency of administrative operations will also be respected in areas not covered by the Administrative Procedures Law.
2) Actively publicizing systems closely related to market access
In order that the government's ongoing deregulation efforts may bear fruit in term of the actual improvement of market access, ample publicity and more active efforts including via the Internet, will be made to disseminate general information and so on about the relevant systems. Especially, in regard to systems which have been the subject of complaints handled by the OTO, and particular attention will be given to making their essential aspects easy to understand. Also, policy actions will be taken to produce English translations of key documents as much as possible, as well as of the most important directives and notifications which set forth the criteria for administrative decision-making.
3) Thorough guidance for regional government bureaus
Measures will be taken to ensure that the ministry's initiatives to improve market access are properly understood and implemented at the local bureaus with which domestic and foreign businesses are in actual contact.
4) Adhering to international rules
Information about formulating specifications and standards, conformity assessment procedures and so on will be actively disseminated in accordance with the TBT and the SPS agreements of the WTO. In particular, the process of formulating specifications and standards will be based on international rules, with ample opportunities for input from a diverse range of third parties, including foreign nationals.
(5) Viewpoint on fostering self-responsibility among consumers and businesses
In regard to product safety regulations, the Product Liability Law will be implemented more firmly, and by reconsidering the need for the government to confirm compliance with specifications and standards in advance, the adoption of a system whereby, in principle, government or third-party specification is not required, that is, a system based on self-verification, will be actively promoted.
As part of measures to improve the environment, it will be actively promoted to provide consumers with adequate information to disclose information to consumers, and more extensive consumer education will be carried out.
(6) Viewpoint on promoting investment and others in Japan
1) Improving the environment on promoting investment in Japan
Promoting investment in Japan is important for contributing to the efficiency and vigor of Japanese economy through the transfer of new technology and advanced management resources. From the point of view of promoting inward investment, it is important for investors to be able to secure talented personnel to invigorate their businesses, and in that respect, steady action on the necessary measures will be taken.
2) Lightening the burden of applications, etc.
The burden of all types of applications, declarations, record-keeping and so on at the import and other stages will be lightened, to make the system more convenient for users and to help foster a business environment with international appeal.
Further, according to "Measures to Ease the Burden of Applications" (adopted by the Cabinet on February 10, 1997), measures to simplify applications and other procedures and use electronic media will be introduced, in principle, by the end of fiscal year 1998, and the adoption of these measures will be actively promoted wherever possible.