(Provisional Translation)

7th Report of Market Access Ombudsman Council (March 18, 2002)

1-(2) Allowing food testing to be conducted by private sector organizations

1. Complainant: Nagoya Chamber of Commerce and Industry

2. Ministry concerned: Ministry of Health, Labour and Welfare

3. Background:

According to Article 15, Paragraph 3 of the Food Sanitation Law, the minister for health, labour and welfare may order foods for which an import declaration has been made to undergo testing at a test laboratory designated by the minister of Health, Labour and Welfare, when local conditions in the product country indicate a risk that the food in question may be in violation of the Food Sanitation Law.
When testing is ordered, expenses for test laboratories designated by the minister must be borne by the importer. The importer is notified of test results via the minister for health, labour and welfare, after which the importer is allowed to import the said food.
In accordance with Article 15, Paragraph 6 of the Food Sanitation Law, the testing fee is not to exceed the amount stipulated by government ordinance (\149,400 per test category), based upon which the testing facility has received permission from the minister for health, labour and welfare. In accordance with Article 19-4 of the Food Sanitation Law, only corporations (public incorporated bodies or foundations) established under Article 34 of the Civil Code may be designated as testing facilities

4. Complaint:

When the quarantine station requests that imported foods be tested, testing must be done at a test laboratory designated by the Ministry of Health, Labour and Welfare, and only facilities of public incorporated bodies or foundations may be used.
Since private sector companies cannot be designated testing facilities, no competition exists, and users must put up with a low standard of service, for example not being informed beforehand of how much time and money testing will require. Testing fees are also expensive.
Accordingly, testing facilities other than public incorporated bodies or foundations, and including private sector companies, should be eligible to be designated as testing facilities.
With regard to this case, based on the OTO countermeasures headquarters' decision of March 2000, we understand that the Ministry of Health, Labour and Welfare is studying testing facilities, with a view to also designating private sector testing facilities as designated facilities under the Food Sanitation Law, and will reach a conclusion on this matter during 2000. How is the study proceeding?

5. Results of deliberation:

The decision of the OMA in March 2001 says that the ministry will study designating private sector testing facilities as designated facilities under the Food Sanitation Law, and will reach a conclusion on this matter during 2000. The ministry has suggested that it will abolish the requirement of being a public corporation. However, as of February 2002, its future direction remains ambiguous and lacks concreteness. By taking measures to allow the entry of private testing organizations as early as possible, the ministry should encourage competition among testing organizations and enhance the quality of testing services, such as through lower testing fees and a shorter testing time.

Based on the above, the ministry should take the following measures with regard to designated testing organizations under the Food Sanitation Law:

The ministry should clarify the specific contents of necessary measures, including the amendment of laws, to designate private sector testing facilities as designated facilities under the Food Sanitation Law. The ministry should submit a bill to amend laws to the current session of the Diet as much as possible and to the next session of the Diet at the latest.

Government decision (March 20, 2002)

1-(2) Allowing food testing to be conducted by private sector organizations

The following measures will be taken regarding the designated inspection organization under the Food Sanitation Law.

A. The ministry will clarify the specific contents of necessary measures, including the amendment of laws, to designate private sector testing facilities as designated facilities under the Food Sanitation Law. The ministry will submit a bill to amend laws to the current session of the Diet as much as possible and to the next session of the Diet at the latest.
This will be dealt with appropriately based on the program for implementation of reform of administration entrusted-type public corporations, etc. to be adopted by the Cabinet in late March.