13. Law Concerning Liquor Business Associations And Measures For Securing Revenue From Liquor Tax


(1) PURPOSE OF THE LAW AND SYSTEM
In consideration of the revenue which the liquor tax generates with regards to total national tax revenue, the objective of this law is to enable businesses that sell alcoholic beverages to set up associations to cooperate with preservation of the liquor tax and to conduct programs which would enhance their collective benefit, while ensuring the government the position to take measures on liquor businesses when necessary, thereby ensuring revenue from the liquor tax and stabilizing alcoholic beverage transactions (Article 1).

(2) OUTLINE OF THE LAW AND SYSTEM
(i) Labeling of the items of alcoholic beverages
Before transferring alcoholic beverages from the premises of production, or withdrawing them from bonded areas, producers or sellers of alcoholic beverages shall be obliged to label their name or brand name, location (address) of the place of production, the item of product, and capacity of containers of the alcoholic beverage, in an easily distinguishable way on part of the container or package (hereinafter referred as "alcoholic beverages containers"). Moreover, indication of the item of alcoholic beverage shall conform to the manner of which producers or sellers had previously notified the Minister of Finance (Article 86-5 of the Law and Article 8-3 of the Enforcement Order).

(ii) Labeling for the statements for preventing underage drinking
For the benefit of consumers, and in accordance with the Labeling Criteria Concerning the Prevention of Underage Drinking prescribed by the Minister of Finance, the Criteria requires producers or sellers of alcoholic beverages to label the alcoholic beverages containers with matters concerning underage drinking (such as "Underage drinking is legally prohibited") (Article 86-6 of the Law, Article 8-4 of the Enforcement Order, the Labeling Criteria Concerning the Prevention of Underage Drinking).

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Order of the Law Concerning Liquor Business Associations and Measures for Securing Revenue from Liquor Tax
Enforcement Regulations of the Law Concerning Liquor Business Associations and Measures for Securing Revenue from Liquor Tax

(4) OUTLINE OF THE CONTROL
1) Items Covered
Labeling of alcoholic beverages
2) Outline of Specifications, Standards and Inspections, etc.
i. Labeling method of the item of alcoholic beverage
A label on which the item of alcoholic beverage is printed must be affixed to the alcoholic beverages containers, in a prominent way, or the item of alcoholic beverages must be clearly printed directly on the receptacle in a prominent way, and,
(a) The letters to be used must be in Japanese, and the size and the style of the letters must appear on the container in a readable way and should be proportional to the volume of the receptacle.
(b) The colors of the letters must be clear enough to be distinguished from that of the label or the entire receptacle, and should appear on the container in a legible manner.

ii. Labeling of the statements for preventing underage drinking
As for alcoholic beverages containers, statements such as "Underage drinking is legally prohibited" or "Drinking is permitted for the person over 20" should be labeled on them in Japanese in an easy-to-see location.

iii. The Law was amended in April 2003 to allow for the Minister of Finance to designate, out of all the labeling criterias, important labeling criterias whose appropriate implementation is deemed necessary with respect to smooth transaction of alcoholic beverages as well as consumer benefit. Upon violation of the important criterias, each violator will be instructed to comply with the law, and if such instruction is not followed, orders follow and then penalties shall be imposed if such orders are not complied with.

(5) 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