4th Report of the Market Access Ombudsman Council (March 17, 1997)

3-(4) Deregulation on attached freezing facilities

1. Complainant: Tokyo Chamber of Commerce

2. Ministry concerned: Ministry of International Trade and Industry

3. Background:

So-called attached freezing facilities, in other words, facilities in pressurized gas manufacturing facilities as a whole by bursting or through leakage of pressurized gases. Therefore, as a constituent part of pressurized gas manufacturing facilities, they are regulated by the related provisions (safety regulations for ordinary pressurized gases, regulations for liquefied petroleum gas, safety regulations for refineries) of the Pressurized Gas Control Law, which sets technical standards for pressure resistance of pressurized gas manufacturing facilities (Articles 11, 12, and 13 of the law). Further, Article 14, Clause 1 of the law stipulates that a permit must be obtained from the Minister of International Trade and Industry if the installation of attached freezing facilities involves construction to change the position, structure or facilities of the manufacturing plant.

When the freezing facilities are as described in Article 5 of the law, they are regulated under the safety regulations for freezing and a safety official for freezing must be appointed, depending on the freezing capacity of the facility, but facilities for freezing pressurized gas manufacturing facilities are not considered freezing facilities.

4. Complaint:

Under the Pressurized Gas Control Law, facilities for freezing pressurized gas manufacturing facilities with a legal capacity of more than three frozen tons are treated as attached freezing facilities. No such regulations exist in other countries, and since these are specialized facilities, the equipment is expensive and this increases the cost of domestic investment. Indirect cooling systems using brine or frozen water should be exempt from the attached freezing facility designation.

5. Results of deliberation:

Although intended to prevent accidents, overly stringent safety regulations increase the burden on businesses. From the perspective of creating an environment conducive to international business, such regulations can inhibit direct investment in Japan and should be kept to a minimum.

In the light of this complaint, the concerned ministry will study the regulations on attached freezing facilities, including the need for continued regulation and based on past safety records, in a committee including prefectural staff in charge and persons in related businesses during FY1997, and based on the results of this study, will implement measures during FY1997.

In order to reduce the burden on businesses, the concerned ministry should study the matter and take the necessary action after reaching a conclusion as soon as possible.

Government decision (March 25,1997)

3-(4) Deregulation on attached freezing

Taking into consideration facilities maintenance performance so far, a committee composed of the prefectural staff in charge and persons in related businesses will study the need to retain regulations on attached freezing facilities. They will reach a conclusion as soon as possible, and all procedures necessary on the basis of their decisions will be implemented in FY 1997.