(d) a legal person represented by the natural persons or entities referred to in subparagraph (a),(b) or (c); a legal person of which more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a),(b) or (c); or a legal person of which more than one-third of the voting rights are held by the natural persons or entities referred to in subparagraph (a),(b) or (c).

2. The natural persons or entities referred to in paragraphs 1(a) through 1(d) are required to be registered with, or to obtain permission or approval of, the Minister of Land, Infrastructure, Transport and Tourism for conducting freight forwarding businesses using international air transportation.  Such Registration shall be permitted, or such permission or approval will be granted, on the basis of reciprocity.

Sector: Transport

Sub-Sector: Railway transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 2717 

Cabinet Order on Foreign Direct Investment(Cabinet Order No. 261 of 1980), Article 3

Description: Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in railway transport industry in Japan.

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. The manufacture of vehicles or parts and components for the railway transport industry is not included in railway transport industry. Therefore, the prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law do not apply to the investments in the manufacture of these products.

Sector: Transport

Sub-Sector: Road passenger transport

Industry Classification: 

Obligations Concerned: National Treatment (Article 9.4)

Level of Government:Central

Measures: Foreign Exchange and Foreign Trade Law(Law No. 228of 1949), Article 2718 

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description: Investment

1. The prior notification requirement and screening procedures undertheForeign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in omnibus industry in Japan.

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. The manufacture of vehicles or parts and components for omnibus industry is not included in omnibus industry.  Therefore, the prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law do not apply to the investments in the manufacture of these products.

Sector: Transport

Sub-Sector: Road transport

Industry Classification:

Obligations Concerned: Market Access (Article 10.5) Local Presence (Article 10.6)

Level of Government: Central

Measures: Road Transport Law (Law No. 183 of 1951), Chapter 2

Special Measures Law concerning the proper management and revitalization of the taxi business in specified and sub-specified regions (Law No.64 of 2009) (hereinafter referred to in this entry “the Law”), Chapter 2 and Chapter 7

Trucking Business Law (Law No. 83 of 1989), Chapter 2

Description: Cross-Border Trade in Services

1. A person who intends to conduct road passenger transport business or road freight transport business is required to establish a place of business in Japan, and to obtain permission of, or to submit notification to, the Minister of Land, Infrastructure, Transport and Tourism.

2. In respect of common taxicab operators business, the Minister of Land, Infrastructure, Transport and Tourism may not grant permission to a person who intends to conduct the businesses, or may not approve a modification of the business plan of such businesses in the “specified regions” and in the “semi-specified regions” designated by the Minister of Land, Infrastructure, Transport and Tourism. Such permission may be granted, or such modification of the business plan may be approved with respect to “semi-specified regions” when the standards set out in the Law are met, including those that the capacity of common taxicab operators businesses in that region does not exceed the volumes of the traffic demand.

Such designation would be made when the capacity of common taxicab transportation businesses in that region exceeds or is likely to exceed the volumes of traffic demand to the extent that it would become difficult to secure the safety of transportation and the benefits of passengers.

3. In respect of common motor trucking business or motor trucking business (particularly-contracted), the Minister of Land, Infrastructure, Transport and Tourism may not grant permission to a person who intends to conduct the businesses, or may not approve a modification of the business plan of such businesses, in the “emergency supply/demand adjustment area” designated by the Minister of Land, Infrastructure, Transport and Tourism. Such designation would be made when the capacity of common motor trucking businesses or motor trucking businesses (particularly-contracted) in that area has significantly exceeded the volumes of transportation demand to the extent that the operation of existing businesses would become difficult.

Sector: Transport

Sub-Sector: Services incidental to transport

Industry Classification:

Obligations Concerned: Market Access (Article 10.5)

Level of Government: Central

Measures: Road Transport Law (Law No. 183 of 1951), Chapter 4

Description: Cross-Border Trade in Services

A person who intends to conduct motorway businesses is required to obtain a licence from the Minister of Land, Infrastructure, Transport and Tourism. The issuance of alicence is subject to an economic needs test, such as whether the proposed motorway is appropriate in scale compared with the volume and nature of traffic demand in the proposed area.

Sector: Transport

Sub-Sector: Services incidental to transport

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3) Market Access (Article 10.5) Local Presence (Article 10.6)

Level of Government: Central

Measures: Pilotage Law (Law No. 121 of 1949), Chapter2, Chapter 3 and Chapter 4

Description: Cross-Border Trade in Services

Only a Japanese national may become a pilot in Japan.

Pilots directing ships in the same pilotage district are required to establish a pilot association for the pilotage district.

Sector: Transport

Sub-Sector: Water transport

Industry Classification:

Obligations Concerned: National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Market Access (Article 10.5)

Level of Government: Central

Measures: Law Concerning Special Measures against Unfavorable Treatment to Japanese Oceangoing Ship Operators by Foreign Government (Law No. 60 of 1977)

Description: Cross-Border Trade in Services

Oceangoing ship operators of another Party may be restricted or prohibited from entering Japanese ports or from loading and unloading cargoes in Japan in cases where Japanese oceangoing ship operators are prejudiced by that Party.

Sector: Transport

Sub-Sector: Water transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 2719

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description: Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in the water transport industry in Japan.

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which significant adverse effect is brought to the smooth operation of the Japanese economy.20 

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

4. For greater certainty, “water transport industry” refers to oceangoing/seagoing transport, coastwise transport (i.e.maritime transport between ports in Japan), inland water transport, and ship leasing industry. However, oceangoing/seagoing transport industry and ship leasing industry excluding coastwise ship leasing industry are exempted from the prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law.

Sector: Transport

Sub-Sector: Water transport

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Most-Favoured-Nation Treatment (Article 9.5 and Article 10.4) Market Access (Article 10.5)

Level of Government: Central

Measures: Ship Law (Law No. 46 of 1899), Article 3

Description: Investment and Cross-Border Trade in Services

Unless otherwise specified in laws and regulations of Japan, or international agreements to which Japan is a party, ships not flying the Japanese flag are prohibited from entering ports in Japan which are not open to foreign commerce and from carrying cargoes or passengers between Japanese ports.

Sector: Vocational Skills Test

Sub-Sector:

Industry Classification:

Obligations Concerned: Market Access (Article 10.5) Local Presence (Article 10.6)

Level of Government: Central

Measures: Human Resources Development Promotion Law(Law No. 64 of 1969), Chapter 5

Description: Cross-Border Trade in Services

Some of specific type of non-profit organisation (the employers’ organisations, their federations, general incorporated associations, general incorporated foundations, incorporated labour unions or miscellaneous incorporated non-profit organisations) can supply the service. Such organisation which intends to carry out the vocational skills test for workers is required to establish an office in Japan and to be designated by the Minister of Health, Labour and Welfare.

Sector: Water Supply and Waterworks

Sub-Sector:

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law(Law No. 228 of 1949), Article 27 (21) 

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3

Description: Investment

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intend to make investments in water supply and waterworks industry in Japan.

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered.

3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result.

Sector: Wholesale and Retail Trade

Sub-Sector: Livestock

Industry Classification:

Obligations Concerned: Local Presence (Article 10.6)

Level of Government: Central

Measures: Livestock Dealer Law (Law No. 208 of 1949), Article 3

Description: Cross-Border Trade in Services

A person who intends to conduct livestock trading business is required to be resident in Japan, and to obtain a licence from the prefectural governor having jurisdiction over the place of residence. For greater certainty, “livestock trading” means the trading or exchange of livestock, or the good offices for such trading or exchange.

Sector: Aerospace Industry

Sub-Sector: Aircraft manufacturing and repairing industry

Industry Classification:

Obligations Concerned: National Treatment (Article 9.4 and Article 10.3) Performance Requirements (Article 9.10) Market Access (Article 10.5) Local Presence (Article 10.6)

Level of Government: Central

Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 and Article 30 (22) 

Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3 and Article 5 

Aircraft Manufacturing Industry Law (Law No.237 of 1952), Article 2, Article 3, Article 4 and Article 5 

Description: Investment and Cross-Border Trade in Services

1. The prior notification requirement and screening procedures under the Foreign Exchange and Foreign Trade Law apply to foreign investors who intended to make investments in the aircraft industry in Japan. 

2. The screening is conducted from the viewpoint of whether the investment is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered. 

3. The investors may be required to alter the content of the investment or discontinue the investment process, depending on the screening result. 

4. A technology introduction contract between a resident and a non-resident related to the aircraft industry is subject to the prior notification requirement and screening procedure under the Foreign Exchange and Foreign Trade Law. 

5. The screening is conducted from the viewpoint of whether the conclusion of the technology introduction contract is likely to cause a situation in which national security is impaired, the maintenance of public order is disturbed, or the protection of public safety is hindered. 

6. The resident may be required to alter the provisions of the technology introduction contract or discontinue the conclusion of that contract, depending on the screening result. 

7. The number of licences conferred to manufactures and service suppliers in those sectors may be limited. 

8. An enterprise which intends to produce aircraft and supply repair services is required to establish a factory related to manufacture or repair aircraft under the laws and regulations of Japan. 

SCHEDULE OF MALAYSIA

INTRODUCTORY NOTES 

1. Description sets out the non-conforming measures for which the entry is made. 

2. In accordance with Article 9.12.1 (Non-Conforming Measures) and Article 10.7.1 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non-conforming measures identified in the Description element of that entry. 

Sector: All 

Obligations Concerned: National Treatment (Article 9.4) 

Level of Government: Central 

Measures: Registration of Business Act 1956 [Act 197] 

Limited Liability Partnership Act 2012 [Act 743] 

Co-operative Societies Act 1993 [Act 502] 

Description: Investment 

Only Malaysian nationals or permanent residents can register a sole proprietorship or partnership in Malaysia. Foreigners can register a Limited Liability Partnership (LLP) in Malaysia, but the compliance officer shall be a citizen or permanent resident of Malaysia that resides in Malaysia. 

Foreigners are not allowed to establish or join cooperative societies in Malaysia. 

Sector: Manufacturing 

Obligations Concerned: National Treatment (Article 9.4) 

Level of Government: Central