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

6-(3) Revision of the Criteria of the Examination for Landing in Japan and Other regulations

1. Complainant: French Embassy

2. Ministry concerned: Ministry of Justice

3. Background Information:

(1) Foreign nationals who enter or reside in Japan are assigned one of the status of residence provided by the Immigration-Control and Refugee-Recognition Act. The law clearly stipulates what types of foreign nationals fit into which status and what activities they can be engaged in. In general, to expand its operation into Japan, a company opens an office in Japan. For a foreign national to work at the office, he may be assigned a status of residence such as "Investor/Business Manager", "Researcher, "Engineer" "Specialist in Humanities / International Services", "Intra-company Transferee", etc.

1) For the "Investor /Business Manager", one must manage or administer the business in which no less than two full-time employees are engaged and the facility used as an office must be located in Japan.
2) For the "Researcher", "Engineer", or "Specialist in Humanities / International Services", one must be employed based on a contract with a public or private organization in Japan. For example, employment based on a contract with the headquarters overseas would not be accepted.
3) For the "Intra-company Transferee", one must have been employed for at least one year at the headquarters, branch, etc., located overseas, then be transferred to work at a main office or branch in Japan.

For these status one must receive a monthly salary of no less than ¥250,000, if he is engaged in an occupation requiring the train of thought or sensitivities rooted in foreign culture. Otherwise, compensation must be no less than that a Japanese person would receive in the same post.

(2) If the "Temporary Visitor" is granted, one may be engaged in sightseeing, recreation, sports; visiting relatives, inspection tours, seminars, meetings, business reporting, or any similar activities during the short period of stay in Japan. An employee of a company overseas may, while receiving compensation from the home country, be engaged in activities such as negotiation on contracts, attendance to effecting transactions and signing contracts, and liaison with the headquarters or branches in his home country, but may not be engaged in activities for which he gets paid in Japan. In addition, the maximum term of stay is 90 days.

(3) Foreign nationals residing in Japan may change their status. In this case, the Minister of Justice may give permission only when he finds that are reasonable grounds to grant the change of status of residence.

(Reference)
Foreign Investment in Japan Development Corporation (FIND) was set up in 1993 with the support of the Ministry of International Trade and Industry, among others, to promote investment into Japan. In the same year, the Business Support Center was opened in Akasaka Twin Tower Building. The Center provides office space that can serve as the center for export activities to Japan, consultation, and the space for business seminars, training, and negotiations.

4. Complaint:

A famous French company attempted to open a representative office in Osaka. The company appointed to the representative a French individual living in Japan who was completely familiar with both technology and language. However, when his status of residence expired and his petition to change his status of residence into the "Specialist in Humanities / International Services" was rejected, he could no longer stay in Japan.

He temporarily returned to France, and applied for the "Engineer" to re-enter Japan, but the application was rejected again.

The reason for the rejections was that working in Japan is based on a contract with the headquarters in France. The requirement for obtaining the "Specialist in Humanities / International Services", that is, "activity based on a contract with a public or private organization in Japan", was not found to be satisfied.

French businesses often consult with the embassy on such problems pertaining to status of residence. Opening an office is the first step in investing into Japan. The contents and standards of the examination of a status of residence under such circumstances should be made as flexible as possible by more generous interpretation of the current law.

5. Results of Deliberation:

Japan's basic policy today is to expand investment into Japan. Therefore, it is necessary to eliminate the various obstacles to making investment into Japan.

According to the ministry concerned, it is possible to open a representative office by utilizing the "Temporary Visitor" status of residence. However, there are restrictions such as the following: changes in the status of the "Temporary Visitor" are limited to special circumstances; the "Temporary Visitor" status is valid for 90 days; and on this status activities to get paid are prohibited.

Consequently, current regulations should be changed so that when a foreign national wishes to establish a company in Japan, it is easier for the company's representative to obtain a status of residence or its change. Although it may be necessary to impose a certain restriction on the acceptance of foreign nationals whose purpose of entry is employment, the ministry concerned should elucidate the interpretation of the regulations in order to make the applicability and the criteria of the examination for landing more transparent. Furthermore, as in this case, when a foreign national is attempting to open a new office in Japan based on a contract with a foreign company, for the purpose of engaging in sound economic activity, an improvement measure should be taken to allow him to get a status of residence (approval of its change) by reviewing practical operation of the current law and ordinances.

Government decision (March 26, 1996)

6-(3) Revision of the Criteria of the Examination for Landing in Japan and Other regulations

To make applicability to the status of residence and the criteria of the examination for landing more transparent for foreign nationals who enter or reside in Japan, the interpretation of the regulations will be elucidated. Furthermore, when a foreign national is attempting to open a new office in Japan based on a contract with a foreign company, for the purpose of engaging in sound economic activity, an improvement measure will be taken to allow him to get a status of residence (approve of its change) by reviewing practical operation of the current law and ordinances.

Follow-up (May 12, 1997)

6-(3) Revision of the Criteria of the Examination for Landing in Japan and Other regulations

In this particular complaint, permission was given to change the individual's status of residence to that of Intra-company Transferee (one year validity period) in May 1996.

With regard to the clarification of interpretation of regulations, the ministry concerned has been providing information to the media on changes made to some status categories (ex, entertainer, pre-college student), and will try to continue providing easily understood information regarding landing and residence procedures through various media, and begin the service of the Internet step by step, by the autumn of 1997.

Regarding the examination on landing and status of residence for each individual when opening a new office in Japan, and when the case similar to the one in this complaint arise, each case will be dealt with in a flexible manner, by referring from regional immigration bureau to the Ministry of Justice, and permission or rejection will be determined based on individual circumstances, taking the type and size of business concerned into consideration and exercising due caution so that this procedure will not be abused, as a way of remaining in Japan.