(1) PURPOSE OF THE LAW AND SYSTEM
The objective of this law is, on the basis of free performance of foreign transactions such as foreign exchange, foreign trade, or others, to enable the proper development of foreign transactions through minimum control and adjustment of foreign transactions, and thereby to promote equilibrium and balance in international payments and stability of currency, and to contribute to the sound development of our national economy.
(2) OUTLINE OF THE LAW AND SYSTEM
The Law prescribes items including payments to foreign countries (Chapter III), capital transactions between foreign countries (Chapter IV), direct investments to Japan (Chapter V) and foreign trade (Chapter IV).
(3) CABINET ORDER AND MINISTERIAL ORDINANCES
Cabinet Order Concerning Control of Import Trade
Regulations for Control of Import
Import Notice
Foreign Exchange Control Order
(4) OUTLINE OF THE CONTROL (Regarding Import Control)
Import controls in the form of import authorization may be imposed on importers on one of the following grounds: healthy development of international trade and the national economy; implementation of ratified treaties and other international commitments; contribution to international efforts for international peace; or implementation of a Cabinet Order (based on Art. 10:1) (Article 52).
1) Items Covered
Items to which import quotas are applied include non liberalized items, items subject to regulation under either the Washington Convention (CITES), the Montreal Protocol, Stockholm Convention on Persistent Organic Pollutants, along with products using asbestos (Cabinet Order Concerning Control of Import Trade, Art. 3:1, Import Notice).
2) Outline of Specifications, Standards and Inspections, etc.
The Japanese import system is classified roughly as follows (Cabinet Order Concerning Control of Import Trade).
i. Import Authorization system
As a rule, any person intending to import goods that come under any of the following paragraphs must receive authorization from the Minister of Economy, Trade and Industry (Cabinet Order Concerning Control of Import Trade, Art. 4).
(a) Cargo to which import quotas are applied in accordance with the provisions of Paragraph 1 of Article 9 of the Cabinet Order concerning the control of import trade.
(b) Cargo originating in or shipped from places of origin or ports which are listed in import notices.
(c) Cargo for which official import notices enumerate special requirements to be met for importing (import authorization is not required for having duly followed the procedures for such items with certain mandatory procedures as laid out in the Import Public Announcement and which falls under the scope of the criteria set out in paragraph (b) above).
ii. Import Quota System
Importers who wish to import items listed as subject to import quota in the Import Public Announcement must first apply to the Minister for Trade, Economy and Industry for import quota on the importation of the intended item, and authorization of import will follow reception of the quota therefrom (Cabinet Order Concerning Control of Import Trade, Art. 9). Import quota will be imposed on a quantity basis, however in cases where such imposition is difficult or inappropriate, quota will be based on price of the item (Cabinet Order, Art. 9:2).
Procedure for Application
As for import quota systems, there are two allocation systems for goods. One is a system allocating goods under a quota to trading companies, and the other is a system allocating goods to consumers etc. As a fundamental rule, the quantity for import quotas is applied to individual items or groups of items of goods and is determined once a year. Details concerning import quota applications for individual items or groups of items are determined by official import announcements made in the first and second halves of the fiscal year and are published in the public bulletin of the Ministry of Economy, Trade and Industry, and Tsusho Koho. The details are as follows: the period of application, place for application, conditions for application, documents to be attached to the application etc.
iii. Imports exempted from import procedures
Some imports need neither approval nor notification provided for by Import Trade Control Regulation (cargo listed on the attached tables 1 and 2 in accordance with the provisions of Article 14 of the Cabinet Order Concerning Control of Import Trade, and cargo temporarily unloaded in Japan: personal use items, grant-aid goods, foreign diplomatic establishments, personal effects of travelers, seamen and permanent residents, etc.).
(5) RECENT IMPORTANT AMENDMENTS
In response to the terrorist attacks in the US in September, 2001, regulations for 1) prompt and appropriate designation of terrorists and other entities subject to asset freezes, and 2) mandatory identification of bona fide customer by the financial and other institutions (Amendment in 2002) were introduced.
In light of recent international environment, new provision was added to allow for mandating import authorization on the basis of a Cabinet Order issued for purposes of maintaining peace and security of Japan and/or the international society (Amendment in 2004).
(6) REFERENCE INFORMATION
(Liaison Offices for Further Information)
Trade Licensing Division, Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry
Tel: 03-3501-1659 http://www.meti.go.jp
Agricultural and Marine Products office (related to living animals and plants under the Washington Convention), Trade and Economic Cooperation Bureau, Ministry of Economy, Trade and Industry
Tel: 03-3501-0532 http://www.meti.go.jp