(1) PURPOSE OF THE LAW AND SYSTEM
The objective of this law is to impose liquor tax on the alcoholic beverages to ensure financial revenue.

(2) PURPOSE OF THE LAW AND SYSTEM
The liquor tax shall be imposed on domestic alcoholic beverages transferred from producing premise and on imported alcoholic beverages withdrawn from bonded areas (Article 6).
Under the Liquor Tax Law, 17 items of alcoholic beverages shall be divided into 4 groups, and specific tax rates shall be applied for each group (Article 23).

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Order of the Liquor Tax Law
Enforcement Regulations of the Liquor Tax Law

(4) OUTLINE OF THE CONTROL
1) Items Covered
Production and sales of alcoholic beverages

2) Outline of Specifications, Standards and Inspections, etc.
Those who intend to produce or sell alcoholic beverages shall apply to the director of the competent tax office and obtain a license for each premises of production or sales (Articles 7 and 9).
The director of the tax office has the authority to refuse issuance of a license in case the conditions prescribed by Article 10 of the Liquor Tax Law (Article 10) would be found.

i. General liquor retail license
[A] The liquor retail license for general retail stores shall be issued when they meet the following requirements.
1) Personal qualifications of applicants
Applicants must have no record of unlawful activities such as violation of the Liquor Tax Law (Paragraph 1-8 of Article 10).
2) Requirements concerning the intended licensed places of sales
Newly applied places of sales shall not be the places regarded as being imappropriate to be controlled (e.g., premises of production or sales for alcoholic beverages, bars or restaurants) (Paragraph 9 of Article 10).
3) Requirements concerning financial condition
Applicants shall not be unsound in terms of financial condition such as being insolvency and before restration from it (Paragraph 10 of Article 10).

[B] Application for a license, determination of the order for examinations of applicants, etc.
Application for a license may be accepted from September 1 of each year, and the order for examinations shall be decided by public lottery. Licenses may be granted by following the examination, in order, to the applicants who have met the aforementioned requirements.

ii. Sales of imported alcoholic beverages
(a) It is not necessary to obtain another license when a vendor sells alcoholic beverages imported by himself at the premise of sale to which a liquor retail license has been previously granted.
(b) As to a liquor wholesale license of imported alcoholic beverages, there are some conditions (e.g., the estimated quantity in average per annum sales should exceed 6kl).

(5) HIGHLIGHTS OF THE RECENT AMENDMENT
In accordance with the Three-Year Program for Promoting Regulatory Reform (Cabinet Decision; March 31, 1998), for the demand-supply adjustment requirements for general retail stores of alcoholic beverages have been relaxed.
1) abolishment of rescrictions based on distance (2000)
The distance between the place of the sale for which a license is requested and the nearest existing place of sale of alcoholic beverages had to be greater than a certain distance.

2) abolishment of restrictions based on population (2003)
The number of license was limited and determined by the population for each area.

Furthermore, as restrictions based on population was abolished, temporary adjustment areas were designated based on the Temporary Adjustment Law for the improvement of Business Conditions of Liquor Retailers. In those areas, it is prohibited to grant a license to retail stores of alcoholic beverages, and to permit a removal of the place of sale from other areas. In 2005, the Temporary Adjustment Law was amended, so the valid term for designated temporary adjustment areas (September 1, 2004 to August 31, 2005) was extended to August 31, 2006.

(6) REFERENCE INFORMATION
(Liaison Office for Further Information)
Liquor Tax and Industry Division, Taxation Department, National Tax Agency
Tel: 03-3581-4161 (Representative) http://www.nta.go.jp