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(Provisional Translation)

6th Report of Market Access Ombudsman Council (March 16, 2000)

5-(2) Correcting exclusionary goods procurement for construction projects

1. Complainant: Korean Embassy


2. Ministry concerned: Ministry of Construction, Ministry of Education, Ministry of Home Affairs, Ministry of Transport


3. Complaint:

In public works projects like bridge construction and so on, contractors often avoid using imported materials, fearing that this will have a negative effect on project management. And even when imported materials are used, they are required to pass unnecessary strength testing and undergo other discriminatory handling.
These actions inhibit the use of foreign materials and measures to improve the situation should be taken.


4. Corresponding Policy of the Ministries concerned:

In the case of public works
For materials used in Ministry of Construction projects, quality specifications are shown on the blueprints (plans, specifications). When they are not shown on the blueprints, the materials used should be of appropriate quality meeting JIS standards, or be of equivalent or better quality.
Accordingly, the blueprints do not specify specific makers' products, but merely show the quality standards and specifications for the materials.
In order to handle foreign materials different from domestic standards in the same way as domestic standards products, quality inspection and certification of foreign building materials are carried out (by the Public Works Research Center and by the Japan Testing Center for Construction Materials).
Inspection certificates enable the public clients projects to confirm that the quality and performance of the materials is equivalent to that of domestic materials, and they are treated in the same way as domestic materials.

In the case of construction projects

Ministry of Construction
Ministry of Construction's building and refurbishing projects already handle foreign materials and equipment different from domestic specifications in the same way as domestic specification materials and equipment, when they are acknowledged to be of equivalent quality.
In order to promote the smooth use of foreign materials and equipment in building and refurbishing projects, building materials and equipment manufactured domestically are also evaluated for quality and performance by the Public Buildings Association.
Regarding steelwork construction, blueprints do not specify the names of any specialty steel makers.

Ministry of Education
The Ministry of Education believes that there have been no cases of discriminatory handling such as that described in the complaint.
This ministry will continue to respect the Agreement on Government Procurement and place orders for construction in a transparent, impartial manner and in a way that fosters competition.

Ministry of Home Affairs
The matter described in the complaint is an issue involving procurement by the contractor. However, direction and supervision of contractors is not in the purvey of the Ministry of Home Affairs.

Ministry of Transport
For materials used in Ministry of Transport construction, quality specifications are shown on the blueprints (plans, specifications). When they are not shown on the blueprints, the materials used should be of medium quality meeting JIS standards, or be of equivalent or better quality.
Accordingly, the blueprints do not specify specific makers' products, but merely show the quality standards and specifications for the materials.


5. Remarks
The complainant accepted this policy.