3rd Report of the Market Access Ombudsman Council (March 18, 1996)

4-(2) Revision of Import Inspection System for Vessels, Vessel Engines and Propulsion Devices, etc.

1. Complainant: Tokyo Chamber of Commerce and Industry

2. Ministry concerned: Ministry of Transport

3. Background Information:

(1) Duty to undergo vessel inspection

In Japan, the ship safety law provides structural and facility requirements for vessels and requires the vessel owners to have their vessels inspected in order to maintain the seaworthiness of the vessels and the safety of human lives. Based on the provision, when taking a vessel out on its first voyage or when the vessel inspection certificate expires, the vessel owner must have his boat undergo a periodical inspection. The inspection is, in principle, conducted by Japan Craft Inspection Organization (JCI) if the vessel is smaller than 20 gross tons and by a District Transport Bureau if 20 gross tons or larger.

(2) Type approval system

A manufacturer of a vessel or products such as an engine may apply for type approval for the vessel or product with the Minister of Transport. A manufacturer who receives a type approval may take the verification that proves the manufactured vessel or product meets the type.

In addition, if a vessel or product that has obtained type approval is manufactured at the factory that is certified by the Minister of Transport, and the chief inspector of the factory confirms that the vessel or product meets the type, it is regarded to have passed the above verification.

If a vessel or product passes the verification for type, the first periodic inspection after that can be skipped.

(3) Inspection by classification society

Vessels other than passenger ships are inspected by a Japanese classification society authorized by the Minister of Transport (Nippon Kaiji Kyokai). If the vessel is registered for classification, it will be deemed as having passed the government's inspection for certain items while the classification is maintained. The government has the authority to give approval to inspection regulations used by Nippon Kaiji Kyokai, conduct an on-site investigation, and establishes penalties in case there is an illicit act.

(4) Use of foreign test data

If an inspection applicant submits test data of a test conducted by a foreign testing institution according to Japanese regulations or a method equivalent to or even more rational than the Japanese testing method, these data will be accepted and the government's tests designed to derive the data will be omitted. To be more specific, the following test data are accepted:

1) Data of a test that was witnessed by a government inspection officer of a country with an advanced maritime industry;
2) Test data of an official testing institution that satisfies conditions that it maintains neutrality in conducting the test and that the government of the country where the institution operates accepts the data (e.g. Underwriter's Laboratory's data (the United States)).

(5) International technical standards

For vessels engaged in international navigation, International Maritime Organization (IMO) studies international technical standards and establishes technical standards in the form of international treaties such as the International Convention of Safety of Life at Sea (SOLAS). SOLAS Convention states that, in principle, the government officials of the flag country of the vessel must inspect the vessel and that the government of the flag country may, however, consign the inspection to an authorized organization such as a classification society. Since vessels inspected by classification societies were sometimes found not to meet international standards and many such vessels were involved in maritime accidents, IMO established the "Guidelines for the authorization of organizations on behalf of the Administration" (effective in January 1996). As this illustrates, IMO is requesting the treaty countries to consign the test to more competent organizations and carry out more careful supervision of them.

IMO is also examining mutual approval pertaining to standard certification. IMO deliberated the mutual approval of lifesaving equipment since 1992, but decided that it was premature for the mutual approval.

International Standardization Organization (ISO) is developing international technical standards for pleasure boats such as yachts of less than 24m in length and for such equipment installed on the vessels as vessel engines, propulsion devices, rigging, etc. In other words, at present, there are no international standards for these products. Consequently, each country inspects these products based on her own technical standards.

4. Complaint:

The complainant claimed that vessels, vessel engines, propulsion devices, etc., approved abroad should require no re-inspection in Japan or require only simplified inspection, and raised the following problems:

(1) A yacht inspected by a British classification society was imported from the United Kingdom (however, some of the equipment such as lights were made in another country). Before being used, the yacht was inspected by JCI. JCI required that the lights be replaced with Japanese-made counterparts. These lights passed inspection overseas and so should not require inspection in Japan (however, it has not been confirmed whether the lights in this case were approved by the British classification society).

(2) Inspection certificates or data for a small- or medium-sized vessel engine are not accepted, which holds true even for engines regarded as established in the United States, Europe, or other industrialized nations. Material test, drawing examination, durability inspection, etc. must be performed again. Under the current law, some details of the tests are at the discretion of the local inspector, which raises the question of fairness and transparency. The model that is manufactured in an industrialized country and is inspected and certified by a national institution of the country or a certain testing institution, provided it is accompanied by the certificate, should be treated as if it were manufactured by an authorized factory in Japan and passed the specified inspections. (AS for this complaint, specific information such as engine type or details on the inspection certificate or data has not been clarified.)

(3) Even if an engine's design has been inspected by the Japanese government, it must be tested by the Japanese government (including JCI) at the plant before shipment or upon import. If the test is conducted upon import and the engine is partially disassembled by a party other than the manufacturer, it will no longer be covered by the manufacturer's warranty. If the engine's design has been inspected, it should be approved only with the shipment test by the manufacturer. Even if manufacturer's test is insufficient, those products at least that have passed test by primary classification societies in the world (e.g. ABS of the United States, DNV of Norway, GL of Germany) should be accepted only with document examinations.

In addition, too many burdens is placed upon the applicant in submitting data from overseas testing institutions because he is required to indicate the testing method and other details. The Japanese government should discuss the testing methods and other details with overseas testing institutions and further promote the use of foreign testing data.

5. Results of Deliberation:

According to the ministry of concern, there is no international precedence of mutual approval concerning vessels because

1) at present, there is no internationally uniform and detailed safety standard,
2) SOLAS Convention requires that the government of the flag country itself must perform the inspections, and
3) IMO reached the conclusion that it was premature for mutual approval of standard certification between foreign governments and that it is sufficient to use mutually testing data.

Although there may be no international technical standards for pleasure boats, vessel engines, propulsion devices, etc., ISO is studying an internationally uniform standard for pleasure boats. In addition, EU is working on mutual approval within the region. Therefore, the ministry concerned should take positive steps on the following points pertaining to pleasure boats, small vessel engines, etc.:

(1) The ministry concerned should contribute to the development of the ISO standard for pleasure boats and when the standard is established, should promptly harmonize the domestic standard with the ISO standard. Furthermore, the ministry concerned should observe the situations in EU, the United States, and other major industrialized countries and, if there is no particular problem in the inspection standards in these countries, should consider accepting their inspection standards and allowing the use of the pleasure boats in Japan only with the examination of documents such as certification of conformance in the country of origin and a physical inspection of the boat, and reach a conclusion during fiscal year 1998.

(2) According to the ministry concerned, JCI accepts testing data from foreign public testing institutions and attempts to facilitate imports. In order to further the acceptance of testing data from overseas testing institutions and reduce the burden on applicants, the ministry concerned should discuss actively the inspection methods with institutions from which no testing data is currently accepted. As for the testing data from principal classification societies, the ministry concerned should consider promptly accepting the data that would not hinder safety, and reach a conclusion by the end of 1998, confirming the effectiveness of the "Guidelines for the authorization of organizations on behalf of the Administration" effective in January 1996.

(3) The type approval system, the authorization system of factory, etc. are already in place so as to rationalize and simplify inspections. Through public relations to foreign companies, the ministry concerned should make an effort to promote the use of these systems and to improve them. For example, as for the authorization system of factory, measures such as promotion of certification by using ISO 9000 series should be examined and conclusion should be reached by the end of fiscal year 1997. In addition, a vigorous effort should be made to reduce the number of inspection items and simplify the inspection procedures paying attention to the progress in technology.

In taking the above measures, it is necessary to ensure that they do not impair the safety of human lives and preservation of the environment.

Government decision (March 26, 1996)

4-(2) Revision of Import Inspection System for Vessels, Vessel Engines and Propulsion Devices, etc.

The following actions will be taken pertaining to pleasure boats, small vessel engines, etc., while making sure not to impair the safety of human lives and preservation of environment.

(1) Contribution will be made to the development of the ISO standard for pleasure boats and when the standard is established, the domestic standard will be promptly harmonized with the ISO standard. Furthermore, while observing the situations in EU, the United States, and other major industrialized countries and, if there is no particular problem in the inspection standards in these countries, the ministry concerned will consider accepting their inspection standards and allowing the use of the pleasure boats in Japan only with the examination of documents such as certification conformance in the county of origin and a physical inspection of the boat, and reach a conclusion during fiscal year 1998.

(2) To further the acceptance of testing data from overseas public testing institutions at the Japan Craft Inspection Organization (JCI), the ministry concerned will hold constructive discussions on the inspection methods with institutions from which no testing data is currently accepted to reduce the burden on applicants. As for the testing data from principal classification societies, the ministry concerned will promptly consider accepting the data that would not hinder safety, and reach a conclusion by the end of 1998, confirming the effectiveness of the "Guideline for the authorization of organizations on behalf of the Administration" effective in January 1996.

(3) Through public relations to foreign companies, an effort will be made to promote the use of and improve the type approval system, the authorization system of factory, etc. For example, as for the authorization system of factory, measures such as promotion of certification by using ISO 9000 series will be examined and conclusion will be reached by the end of fiscal year 1997. In addition, a vigorous effort will be made to reduce the number of inspection items and simplify the inspection procedures paying attention the progress in technology.

Follow-up (May 12, 1997)

4-(2) Revision of Import Inspection System for Vessels, Vessel Engines and Propulsion Devices, etc.

(1) To contribute to the establishment of ISO technical standards for pleasure boats, the ministry of transport concerned, together with a committee established within the Japan Small Vessel Testing Association for investigation and testing, attended ISO meetings and reported results of their investigations and tests. The ISO is currently creating a draft proposal on main pleasure boat safety standards like righting and structure, but they have not yet been adopted. The committee will continue its investigations and by participating in meetings held by the ISO, will contribute to the establishment of ISO technical standards. In addition, in the event that international standards are adopted, domestic standards will be promptly harmonized with these.

Furthermore, based on trends in the EU, the United States and other major industrialized countries, the ministry concerned should consider accepting the inspection standards in use in those countries, if there are no particular problems with them, and allowing the use of pleasure boats in Japan with only an examination of documents such as certification of conformance in the country of origin and a physical inspection of the boat.

(2) Since comparison of inspection methods for various types of equipment and apparatus on foreign vessels which have been tested by many different foreign inspection institutions may not necessarily be efficient, the ministry will participate in a study group which will undertake to create an internationally standardized data format used by the International Marine Organization (IMO), in order to lessen the burden on applicants. In the event that a standardized international format for test data is adopted, test data will be accepted and used.

In addition to conducting port state control (PSC) on foreign vessels entering Japanese ports, it was ascertained that information on results of PSC in the Asia-Pacific and European regions would be exchanged and that efforts would be made to ascertain implementation of the "Guidelines for the authorization of organizations on behalf of the flag country." If it is ascertained that there are no risks to safety, after accumulation of such data, the ministry will study accepting test data from classification societies.

(3) The ministry has undertaken various publicity efforts, holding briefing meetings and seminars to facilitate imports of foreign vessels for foreign parties. As a result, type approval was granted in eight cases in FY1996 (accounting for 11% of all approvals in the same fiscal year).

To promote certification using the ISO 9000 series, the ministry is studying the particulars for examination under the factory authorization system and certification using the ISO 9000 series, and will establish a study group for this purpose in June 1997. Based on the group's conclusions, the ministry will reach a conclusion by the end of FY1997 to improve the factory authorization system, by promoting certification using the ISO 9000 series and so on. Further, it was recommended to the Council for Transport Technology in October 1996 that the periodic inspection system be revised, given the progress made in technology and trends concerning international regulation of vessels and with the safety of vessels in mind, in order to reduce the burden on applicants for inspections and improve convenience. The Council recommended in December 1996 that the interval between and the date of periodic inspections should be changed and that the number of inspection particulars should be reduced, and that vessel inspection should be further streamlined. Based on this recommendation, completion inspection for propulsion devices in authorized factories will be streamlined by the end of FY1997, and the interim inspection for propulsion devices and the open inspection for electric motors will be streamlined by the end of the first half of FY1997, and that active measures will be taken to streamline other inspections.