OTO No.592

OTO No.	592	Classification		MITI-251
Date of Acceptance	March 29, 1999	Respective Office Receiving Complaint		Cabinet Office (Economic Planning Agency)
Responsible Ministries	Ministry of Economy, Trade and Industry (Ministry of International Trade and Industry)	Related Laws		Explosives Control Law, Enforcement Regulations of the Explosives Control Law, Foreign Exchange and Foreign Trade Law
Complainant	Domestic firm	Exporting Countries		USA
Subject	Abolition of import licenses and import notification system for model rockets under import quotas
Description of Complaint	The Explosives Control Law classifies engines and igniters for large model rockets as gunpowder and ammunitions respectively, and consequently, when these are imported, 1) the importer must obtain an import quota and import approval from the Minister for International Trade and Industry, as called for under the Import Trade Control Law; 2) next, the importer must obtain an import permit from the prefectural governor, in accordance with the Explosives Control Law; 3) finally, after import, the importer must file an import notification with the prefectural government, in accordance with the Explosives Control Law. This constitutes triple regulation, and the complainant believes that the import license and import notification system under the Explosives Control Law should be abolished. In the past, the requirement for export notification under the Explosives Control Law was abolished. The complainant maintains that this was done because this requirement overlapped with the requirement for export approval under the Foreign Exchange and Trade Control Law (the current Foreign Exchange and Foreign Trade Law), to avoid double regulation.
Details of Measures	1. The ministry replied as follows: Import quotas and import approval based on the Import Trade Control Law are carried out from the viewpoint of promoting foreign trade and the healthy development of the domestic economy. Import permits under the Explosives Control Law, on the other hand, are required from the viewpoint of determining whether there is any risk of a disaster being caused by explosives, in accordance with the purposes, etc. for which explosives are being imported. Accordingly, the legal aims of the Import Trade Control Law and of the Explosives Control Law are different, and since the act of importing constitutes increasing the amount of new explosives present in Japan, from the viewpoint of preventing disasters and maintaining public safety, the provisions of the Explosives Control Law, requiring a prior import permit and actual notification, are essential requirements which do not constitute triple regulation. The export notification system was abolished because it has no impact as far as the controls of the Explosives Control Law are concerned, since the information (type of explosives, amounts, destination, etc.) to be confirmed in export notification under the Explosives Control Law can be adequately confirmed in export approval documentation called for under the Foreign Exchange and Foreign Trade Control Law, and since the manufacture, transport and storage of explosives for export is regulated within Japan. 2. Later, the ministry and the complainant held consultations and agreed that measures for this complaint would be covered by those for the OTO No. 591 complaint. This complaint has thus been processed .
Status of Processing	Processed (November 1, 2000)		Classification of Action		D
Remarks	A written reply was made on April 27, 1999. A written reply was made on August 2, 1999, (to additional questions dated June 29, 1999). A written reply was made on September 10, 1999, (to additional questions dated August 12, 1999). A written reply was made on October 21, 1999, (to additional questions dated September 22, 1999). A written reply was made on February 7, 2000, (to additional questions dated December 24, 1999). The first consultations were held on June 12, 2000. The second consultations were held on August 1, 2000. The third consultations were held on October 26, 2000.