(1) PURPOSE OF THE LAW AND SYSTEM
Marine Transportation Law: The objective of this law is to improve public welfare by maintaining public order of marine transportation and promoting sound development of marine transportation business.
Coastal Shipping Law: The objective of this law is to encourage the sound development of coastal shipping business, thereby contributing to the smooth coastal transport of goods.

(2) OUTLINE OF THE LAW AND SYSTEM
Unlike the approval system for fares and charges covering the majority of other domestic transport systems, as a rule, fares and charges for coastal shipping are based upon a so-called free fares and charges system. In other words, determination of fares and charges is left to negotiations among interested parties (Coastal Shipping Law).
However, any person engaging in cargo liner service shall make tariffs public (Article 19-6 of the Marine Transportation Law).
Moreover, the Coastal Shipping Law was greatly revised together with the Sailor Law and the Crew Employment Security Law (promulgated in June 2004) by "Law revising a part of the Sailor Law, etc. for activating the maritime transport business". The operation management system for securing the safety of transportation was introduced. The purpose of the deregulation from registration is to approval a system for the entrance as well as the abolishment of business classification (abolishment of the classification between the coastal transportation and coastal ship leasing business).

(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Enforcement Order of the Marine Transportation Law
Enforcement Regulations of the Marine Transportation Law
Enforcement Regulations of the Coastal Shipping Law
Reporting Regulations of Coastal Shipping Business

(4) OUTLINE OF SPECIFICATIONS, STANDARDS AND INSPECTIONS, ETC.
1) Items Covered
Ship operation business, coastal shipping business(the classification between coastal transportation and coastal ship leasing business was abolished by the revision of Coastal Shipping Law.)

2) Outline of the Control
i. Content of the Control
Any person intending to engage in general passenger liner service business shall obtain permission from the Ministry of Land, Infrastructure and Transportation for each line (Marine Transportation Law). Any person intending to engage in coastal carriage business or coastal ship leasing business of ships of more than one hundred gross tonnage and more than 30 meters in length shall register to the Ministry of Land, Infrastructure and Transportation (Coastal Shipping Law).

ii. Procedure for Application
Any person intending to engage in general passenger liner service business shall submit a written application to the Minister of Land, Infrastructure and Transportation stating the name or title and address (name of a representative in the case of a judicial person) and a business program and other items (Marine Transportation Law).
Any person intending to engage in coastal shipping business or coastal ship leasing business shall submit a written application to the Minister of Land, Infrastructure and Transportation by stating the name or title and address and classification of the said business and other items (Coastal Shipping Law).

iii. Permission and Registration System
To obtain permission for general passenger liner service business, an examination of whether or not the business conforms to standards for adaptability of vessels used for the said business and the safety of the planning of the said business is required (Marine Transportation Law). In a registration application, a business program describing a fund raising, crew arrangement embarkation, and other matters provided by the Ministerial ordinance of the Ministry of Land, Infrastructure and Transportation is required to be attached. (Coastal Shipping Law)

(5) Highlights of Recent Revision of Laws and Ordinances
1) Law revising a part of Marine Transportation Law (enacted in October 2000)
This law, which abolishes the regulation of demand and supply concerning domestic passenger transport businesses, aims to accomplish to provide various higher quality services full of the inventiveness of business operators by securing the maintenance and safety of sea life line in isolated islands. It also introduces the market mechanism such as the user safeguards as well as taking necessary measures for the parts that may cause various problems to users.

2) Others: Simplification of application procedures
Submitting by FAX ^. FD: Application for minor changes of business program in general passenger liner businesses, application for the change of applied matters concerning the commencement of cargo liner businesses as well as the application for the change of fare and charge, and minor changes of the business program.

3) Cabinet order revising a part of Marine Transportation Law enforcement order (enforced on July 1, 2002)
As for the work of the District Transport Bureau, the scope of the entrust of the power to the head of District Transport Bureau is expanded so as to secure the work that can be managed locally in the District. Concretely, the official power concerning the general passenger liner businesses, which has been held by some Ministers by the Marine Transportation Law Enforcement Order, is totally entrusted to the head of District Transport Bureau in principle.

4) Ministerial ordinance that revises a part of the Coastal Shipping Law (enforced on April 1, 2005)
The ministerial ordinance is revised according to a partial revision of the Coastal Shipping Law (promulgated in June, 2004) as follows:

i. Matter concerning the registration of coastal shipping business
The entry regulation to coastal shipping business is renewed from the license system to the registration system, and therefore regulations concerning the application for registration are provided as follows:
A. The length of the ship and owner's name shall be entered on the application for registration.
B. Documents such as the capital plans and the crew distribution multiplication plans shall be attached to the application for registration.
C. The following matters shall not be satisfied as a requirement to reject registration.
- Ships of the gross tonnage 100 tons or more, or 30 meters or more in length shall be owned.
- The cost concerning the inspection of ships under the provisions of Ships Safety Law and the cost, etc. concerning the maintenance of the working environment of crews under the regulations of crews shall be properly included in the funding plan.

ii. Matters concerning the terms and conditions of coastal shipping
The following provisions shall be set forth pursuant to the establishment of the terms and conditions of carriage
A. Ships provided by the terms and conditions of coastal shipping shall be roll-on /roll-off ships and container ships.
B. Period of reporting the terms and conditions of coastal shipping shall be provided.

iii. Matters concerning the service management system
The following provisions shall be set forth pursuant to the establishment of the service management system.
A. Periods of reporting the service management provisions and service manager shall be stipulated.
B. The service management provisions describes the following matters.
- Matters concerning the management organization of shipping service shall be stipulated.
- Matters concerning the working system of service managers and service staff shall be stipulated.

iv. Matters concerning the report of coastal shipping operators
Matters concerning the actual picture and financial status of the management shall be reported regularly.

(6) Reference information
(Liaison Offices for Further Information)
Coastal Passenger Transport Division, Maritime Transport Bureau, Ministry of Land, Infrastructure and Transportation
http://www.mlit.go.jp

Coastal Passenger Transport Division
Tel:O3-5253-8622

Coastal Cargo Transport Division
Tel:03-5253-8627