List C. Additional Commitments - Chapter 8 (Trade in Services) Australia
This List sets out, pursuant to Article 8.9 (Additional Commitments), Australia’s additional commitments with respect to measures affecting trade in services, not subject to scheduling under Article 8.4 (National Treatment), Article 8.5 (Market Access), Article 8.6 (Most-Favoured Nation Treatment) or Article 8.11 (Local Presence).
Description of additional commitment
Sector: Maritime Transport Services Services at Australian ports are made available to international maritime transport suppliers on reasonable and non-discriminatory terms and conditions. The following is an indicative, but not exhaustive, list of services at Australian ports: pilotage, towing and tug assistance; provisioning, fuelling and watering; garbage collection and ballast waste disposal; Port Captain's services; navigation aids; shore-based operational services essential to ship operations, including communications, water and electrical supplies; emergency repair facilities; anchorage, berth and berthing services. Where road, rail and related auxiliary services are not fully covered in Appendix A (Australia’s Market Access Commitments – Regional (State and Territory) Level) of List B a multimodal transport operator shall have the ability, on reasonable and non-discriminatory terms and conditions, to rent, hire or charter trucks, railway carriages, ships and related equipment for the purpose of onward forwarding of international cargoes carried by sea, or have access to and use of these forms of transport services for the purpose of providing multimodal transport services.
China
List A. Explanatory Notes
1. List A sets out, pursuant to Article 10.8 (Reservations and Non-Conforming Measures), China’s existing measures that are not subject to some or all of the obligations imposed by:
(a) Article 10.3 (National Treatment);
(b) Article 10.4 (Most-Favoured-Nation Treatment);
(c) Article 10.6 (Prohibition of Performance Requirements); or
(d) Article 10.7 (Senior Management and Board of Directors).
2. Each entry in List A sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Level of Government indicates the level of government maintaining the scheduled measure(s);
(c) Type of Obligation specifies the Article(s) referred to in paragraph 1 that, pursuant to subparagraph 1(a) of Article 10.8 (Reservations and Non-Conforming Measures), do not apply to the non-conforming aspects of the Source of Measure or the Description of Measure, as set out in paragraph 3;
(d) Description of Measure sets out the non-conforming aspects of the measure for which the entry is made; and
(d) Source of Measure (1) identifies the laws, regulations, or other measures for which the entry is made. A measure cited in the Source of Measure element:
(i) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure.
3. In accordance with subparagraph 1(a) of Article 10.8 (Reservations and Non-Conforming Measures), and subject to subparagraph 1(c) and paragraph 3 of Article 10.8 (Reservations and Non-Conforming Measures), the Articles specified in the Type of Obligation element of an entry in List A do not apply to the non-conforming aspects of the Description of Measure element or of the law, regulation, or other measure, as applicable, identified in the Source of Measure of that entry.
4. In the interpretation of an entry in List A, all elements of the entry, as well as the Articles against which the entry is made, shall be considered. Unless otherwise explicitly indicated in the entry, the Description of Measure element shall prevail over all other elements, including where a difference exists between the Description of Measure element and the Source of Measure element in the aspect of investment liberalisation.
5. Where there is overlap between the contents of List A and List B, notwithstanding the obligations China assumes under Article 10.8 (Reservations and Non-Conforming Measures) and List A, China remains entitled to adopt or maintain relevant measures in accordance with Article 10.8 (Reservations and Non-Conforming Measures) and List B.
6. For the purposes of List A:
(a) foreign investor means any investor of another Party or a non-Party.
(b) foreign investor may not invest means a foreign investor may not directly or indirectly invest, including by holding any shares, stock or other forms of rights or interest, in the territory of China; and
(c) Chinese control means the circumstances where the total investment proportion held by foreign investors, whether directly and indirectly, is not greater than 49 per cent.
7. List A only applies to non-services investments by foreign investors, and does not apply to any investments by foreign investors in services (including cultural industries, constructions and operations of infrastructural and other facilities). Any aspects of such an entry which relate to investment in service are subject to the Chapter 8 (Trade in Services) only. For greater certainty, List A shall apply to the following sectors: manufacturing, agriculture, fishery, forestry and hunting, mining and quarrying; and all or a combination of these sectors in which an entry is made.
1.
Sector : Seed Industry Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : 1. Foreign investors may not invest in the research and development, breeding and planting of the precious and fine varieties which are rare and special in China, or the production of the relevant reproductive materials thereof (including high quality genes in the industries of crop production, livestock industry and aquaculture). 2. Foreign investors may not invest in the selection and breeding of transgenic varieties of agricultural crops, livestock and breeding poultry and aquatic fry, or the production of their transgenic seeds (sprouts). 3. Investments by foreign investors in the selection and breeding of new varieties of wheat or corn and seed production of wheat or corn require Chinese control. Source of Measure : - Seed Law (Amended in 2015), Articles 8, 11, and 62; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Articles 1 through 3
2.
Sector : Fishing Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : Foreign investors may not invest in the fishing of aquatic products within the sea and inland waters under the jurisdiction of China. Source of Measure : - Fisheries Law (2013); - Law on the Exclusive Economic Zone and the Continental Shelf (1998), Article 5; - Law on the Territorial Sea and the Contiguous Zone (1992), Article 11; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Article 4
3.
Sector : Exploration and Exploitation of Exclusive Economic Zone and Continental Shelf Level of Government : Central Type of Obligation : National Treatment (Article10.3) Description of Measure : Any international organisation, foreign entity or individual must obtain approval from the Chinese government for carrying out activities of exploring and exploiting natural resources in the exclusive economic zone of China or on the Chinese continental shelf, or drilling on the Chinese continental shelf for any purpose. Source of Measure : Law on the Exclusive Economic Zone and the Continental Shelf (1998), Article 7
4.
Sector : Exploitation and Ore Dressing of Rare Earth and Rare Minerals Level of Government : Central Type of Obligation : National Treatment (Article10.3) Description of Measure : 1. Foreign investors may not invest in the exploration, exploitation or ore dressing of rare earth and tungsten. 2. Foreign investors may not enter the mining area of rare earth mines or obtain mine geological data, ore samples or production processes and technology without approval. Source of Measure : - Notice of the State Council on Classifying Tungsten, Tin, Antimony and Ion-Type Rare Earth Minerals as Specific Minerals Under Protective Mining by the State (1991), Article 2; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Article 5
5.
Sector : Automobile Manufacture Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : Investments by foreign investors in the manufacture of complete automobiles, except for special purposes automobiles and new energy automobiles, require that the shareholding percentage of the Chinese party shall not be less than 50 per cent, and one foreign investor may establish up to two equity joint ventures that manufacture complete automobiles of the same category (passenger cars, commercial cars) within the territory of China. Source of Measure : - Automobile Industry Development Policy (2009)，Article 48; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Article 9
6.
Sector : Manufacture of Communication Equipment Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : Investments by foreign investors in the manufacture of ground reception facilities for satellite television and broadcast and key components thereof are prohibited. Source of Measure : - Rules for the Administration of Ground Receiving Facilities of Satellite Television Broadcasting (Amended in 2018), Articles 3, 4; - Provisional Measures for the Installation of Ground Receiving Facilities of Satellite Television Broadcasting (2009), Article 15; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Article 10; - Any other existing laws, regulations and rules
7.
Sector : Pharmaceutical Manufacture Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : 1. Foreign investors may not invest in the processing of traditional Chinese medicinal material as listed in the Regulations on the Administration and Protection of Wild Medicinal Resources and the List of Precious and Endangered Flora in China. 2. Foreign investors may not invest in the application of processing techniques of Chinese medicinal decocting pieces including steaming, plain stir-baking, stir-baking with adjuvant, calcining or the manufacture of confidential prescription products of Chinese patent medicine. Source of Measure : - Circular of the State Food and Drug Administration on the Relevant Issues concerning the Business Scope of the Foreign-funded Enterprises that Engage in the Production of Herbal Medicines for Decoction (2006); - Regulation on Protection of Wild Medicinal Resources (1987); - List of Chinese Rare and Endangered Protected Plants (1987); - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Article 8
8.
Sector : Government-granted Monopoly Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : Foreign investors may not invest in the manufacture, wholesale, retail, import or export of leaf tobacco, cigarettes, re-dried leaf tobacco, cigars, cut tobacco and other tobacco products (2) Source of Measure : - Law on Tobacco Monopoly (2015), Articles 1 through 3; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Article 13
9.
Sector : All Sectors Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : The relevant authorities in the course of performing their duties according to law, shall not grant the licence, enterprise registration, or any other relevant matters if a foreign investor proposes to invest in sectors covered by the Negative List but not in compliance with the requirements listed in the Negative List; nor the project approval for an investment in fixed assets should be issued. (3) Source of Measure : Regulation for the Implementation of Foreign Investment Law (2019), Article 34
10.
Sector : All Sectors Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : Foreign investors may not apply for opening A share securities accounts, except for: 1) Qualified foreign institutional investors (including Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII)) (4); 2) Foreign individuals with Chinese permanent Residency permit; 3) Foreign employees working in China who are incentive grantees of A share listed companies 4) Foreigners working in China that securities supervision institutions of their mother countries have already established supervision cooperation with China Securities Regulatory Commission; 5) Foreign investors who made strategic investment in A share listed companies; and 6) Foreign investors from the foreign share-holding companies which are later listed in A share market. Foreign investors may not apply for opening futures accounts, except for: 1) Qualified foreign institutional investors (including QFII and RQFII); 2) Foreign individuals with Chinese permanent Residency permit; and 3) Foreign investors who are allowed to trade designated futures products. Source of Measure : - Securities Law (2014), Article 166; - Regulation on the Administration of Futures Trading (2017), Article 23; - Measures for the Administration of Securities Investment in China by Qualified Foreign Institutional Investors (2006); - Measures for the Pilot Program of Securities Investment in China by RMB Qualified Foreign Institutional Investors (2013); - Measures for the Administration of Equity Incentives of Listed Companies (2018), Article 45; - Measures for the Administration of Strategic Investment in Listed Companies by Foreign Investors (2015), Article 15; - Measures for the Administration of Securities Registration and Clearing (2018), Article 19; - Notice on Matters Regarding the Opening of A-share Securities Accounts by Eligible Foreigners (2019); - Interim Measures for the Administration of Trading in Designated Domestic Futures Products by Foreign Traders and Foreign Brokerage Agencies (2015), Article 10
11.
Sector : All Sectors Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : A foreign investor making an investment within the territory of China shall complete a foreign exchange registration in accordance with the relevant provisions, and shall comply with foreign exchange provisions, including provisions on account opening, funds transfer and settlement, receipt and payment and cross-border securities investment quota, etc. Source of Measure : - Regulation on the Administration of Foreign Exchange (2008), Articles 16 and 23; - Notice of the State Administration of Foreign Exchange on Reforming and Regulating Policies on the Administration over Foreign Exchange Settlement of Capital Accounts (2016)
12.
Sector : All Sectors Level of Government : Central Type of Obligation : National Treatment (Article 10.3) Description of Measure : 1. Foreign investors may not carry out business operations in China in the forms of Individual Business Entities or Individual Sole Proprietorship Enterprises, or as members of Specialised Cooperatives of Farmers. 2. Foreign-funded partnership enterprises may not be established for industries, areas or businesses which are subject to the requirement of “foreign investor may not invest”, “Chinese control”, “relative Chinese control” or industries, areas or businesses subject to certain foreign investment proportion requirements, as included in the Negative List (5). Source of Measure : - Law on Individual Sole Proprietorship Enterprises (2000), Article 47; - Law on Specialized Cooperatives of Farmers (2017), Articles 2 through 4 and 19; - Provisions for the Administration over Registration of Foreign-invested Partnership Enterprises (2014), Article 3; - Regulation on Individual Business Entity (Amended in 2016), Article 2; - Special Administrative Measures for Market Access of Foreign Investment (Negative List) (2019 Edition), Paragraph 3 of the Notes
List B. Explanatory Notes
1. List B sets out, pursuant to Article 10.8 (Reservations and Non-Conforming Measures), the specific sectors, subsectors, or activities for which China may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 10.3 (National Treatment);
(b) Article 10.4 (Most-Favoured-Nation Treatment);
(c) Article 10.6 (Prohibition of Performance Requirements); or
(d) Article 10.7 (Senior Management and Board of Directors).
2. Each entry in List B sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Type of Obligation specifies the Article(s) referred to in paragraph 1 that, pursuant to Article 10.8 (Reservations and Non-Conforming Measures), do not apply to the sectors, subsectors, or activities covered by the entry;
(c) Description sets out the scope of the sectors, subsectors, or activities covered by the entry; and
(d) Existing Measures identifies, for transparency purposes, existing measures that apply to the sectors, subsectors, or activities covered by the entry.
3. In accordance with Article 10.8 (Reservations and Non-Conforming Measures), the Article(s) specified in the Type of Obligation element of an entry in List B do not apply to the sectors, subsectors, or activities identified in the Description element of that entry.
4. For the purposes of List B, foreign investor means any investor of another Party or a non-Party.
5. List B only applies to non-services investments by foreign investors, does not apply to any investments by foreign investors in services (including cultural industries, constructions and operations of infrastructural and other facilities). Any aspects of such an entry which relate to investment in service are subject to the Chapter 8 (Trade in Services) only. For greater certainty, List B shall apply to the following sectors: manufacturing, agriculture, fishery, forestry and hunting, mining and quarrying; and all or a combination of these sectors in which an entry is made.
1.
Sector : Atomic Energy Type of Obligation : National Treatment (Article10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to the following: utilisation of atomic energy (including construction or operation of nuclear power stations); nuclear fuels; nuclear materials; nuclear raw materials; exploration, exploitation and processing of radioactive minerals; treatment and disposal of radioactive wastes; nuclear energy related services; design, manufacture, production, transfer, use, import and export related to nuclear technology application; planning, monitoring, maintenance and repair services related to nuclear energy. Existing Measures : -
2.
Sector : Protection of Biological Resources Type of Obligation : National Treatment (Article 10.3) Prohibition of Performance Requirements (Article 10.6) Description : China reserves the right to require approval of the research and development activities conducted by the foreign investment enterprises utilising the biological resources (6) (including human, animals, plants, and microorganism resources) which are originated from and protected by China. China may also require the aforesaid enterprises to conduct such activities in the form of cooperation with Chinese organisations and to share the benefits generated from the research and development, as well as the following application and commercialisation. Existing Measures : - Wild Animals Protection Law (Amended in 2018), Articles 27,40 and 48; - Animal Husbandry Law (Amended in 2015), Articles 16 and 17; - Grassland Law (Amended in 2013), Articles 44 and 49; - Seed Law (Amended in 2015), Articles 8,10 and 11; - Fisheries Law (2013), Articles 8 and 46; - Regulation on Wild Plants Protection (Amended in 2017), Articles 16, 20 and 21; - Regulation on the Administration of Human Genetic Resources (2019), Articles 7, 21, 22 and 24
3.
Sector : All sectors Type of Obligation : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure that grants rights or preferences to ethnic minorities (7) and ethnic minority areas (8) with a view to balancing economic development and maintaining social justice. Existing Measures : -
4.
Sector : All sectors Type of Obligation : National Treatment (Article 10.3) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure that grants rights or preferences to special groups (including the groups of preferential treatment, the disabled, aged people, children and households enjoying the minimum living guarantee, and people living in extreme difficulty). Existing Measures : -
5.
Sector : National Traditional Craftsmanship Type of Obligation : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to national traditional craftsmanship including production of rice paper, ink stick, tiger-bone and ivory. Existing Measures : -
6.
Sector : All sectors Type of Obligation : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to non-government organisations (including but not limited to private non-enterprise units, associations, foundations, foreign non-government organisations and other civil social organisations and groups and their representative institutions). Existing Measures : - Law of the People's Republic of China on the Administration of Activities of Overseas Non-Governmental Organisations within the Territory of China (2016) - Regulations on the Administration of Foundations (2004), Articles 6, 13, 23 and 24
7.
Sector : Land Type of Obligation : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to land. Existing Measures : -
8.
Sector : All Sectors Type of Obligation : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to the acquisition, alteration, distribution, transfer and disposition of the assets or equity interests held by state-owned enterprises and governmental agencies. Existing Measures : -
9.
Sector : All Sectors Type of Obligation : Most-Favoured-Nation Treatment (Article 10.4) Description : China reserves the right to adopt or maintain any measure that accords differential treatment to the parties under any bilateral or multilateral international agreement in force or signed prior to the date of entry into force of this Agreement. (9) With respect to the area of fisheries, China reserves the right to adopt or maintain any measure that accords differential treatment to the parties under any bilateral or multinational agreement in force or signed after the date of entry into force of this Agreement. Existing Measures : -
10.
Sector : All Sectors Type of Obligation : National Treatment (Article 10.3) Most-Favoured-Nation Treatment (Article 10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to any special arrangement or favourable treatment for any investor from Hong Kong, Macao and Taiwan as well as any investment thereof. Existing Measures : -
11.
Sector : All Sectors Type of Obligation : National Treatment (Article10.3) Most-Favoured-Nation Treatment (Article10.4) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : China reserves the right to adopt or maintain any measure with respect to new sectors and industries. Existing Measures : -
Japan
List A. Explanatory Note
1. This List A sets out, in accordance with paragraph 1 of Article 8.8 (Schedules of Non-Conforming Measures) and paragraph 1 of Article 10.8 (Reservations and Non-Conforming Measures), the entries made by Japan with respect to existing measures that do not conform with obligations imposed by:
(a) Article 8.4 (National Treatment) or Article 10.3 (National Treatment);
(b) Article 8.5 (Market Access);
(c) Article 8.6 (Most-Favoured-Nation Treatment) or Article 10.4 (Most-Favoured-Nation Treatment);
(d) Article 8.11 (Local Presence);
(e) Article 10.6 (Prohibition of Performance Requirements); or
(f) Article 10.7 (Senior Management and Board of Directors). (1), (2)
2. Each entry sets out the following elements:
(a) Sector refers to the general sector for which the entry is made;
(b) Subsector refers to the specific sector for which the entry is made;
(c) Industry Classification refers, where applicable, and only for transparency purposes, to the activity covered by the entry according to domestic or international industry classification codes;
(d) Level of Government indicates the level of government maintaining the measure for which the entry is made;
(e) Type of Obligation specifies the obligations referred to in paragraph 1 for which the entry is made;
(f) Description sets out, with respect to the obligations referred to in paragraph 1, the non-conforming aspects of the existing measures for which the entry is made; and
(g) Measures identifies the existing laws, regulations, or other measures for which the entry is made. A measure cited in the Measures element:
(i) means the measure as amended, continued, or renewed as of the date of entry into force of this Agreement; and
(ii) includes any subordinate measure adopted or maintained under the authority of and consistent with the measure.
3. In the interpretation of an entry, all elements of the entry shall be considered. An entry shall be interpreted in the light of the relevant provisions of the Chapters against which the entry is made. The Measures element shall prevail over all the other elements.
4. With respect to financial services:
(a) for prudential reasons within the context of Article 4 (Prudential Measures) of Annex 8A (Financial Services), Japan shall not be prevented from taking measures such as non-discriminatory limitations on juridical forms of a commercial presence. For the same reasons, Japan shall not be prevented from applying non-discriminatory limitations concerning admission to the market of new financial services which shall be consistent with a regulatory framework aimed at achieving such prudential objectives. In this context, securities firms are allowed to deal in securities defined in the relevant laws and regulations of Japan, and banks are not allowed to deal in those securities unless allowed in accordance with those laws and regulations; and
(b) services supplied in the territory of another Party to the service consumer in Japan without any active marketing from the service supplier are considered as services supplied under subparagraph (r)(ii) of Article 8.1 (Definitions).
5. With respect to air transport services, measures affecting traffic rights or measures affecting services directly related to the exercise of traffic rights are not listed in this List A, as these are excluded from the scope of Chapter 8 (Trade in Services) pursuant to Article 8.2 (Scope).
6. Laws and regulations of Japan with regard to spectrum availability affecting obligations under Article 8.5 (Market Access) are not included in this List A, taking into account the Attachment 6 of Guidelines for the Scheduling of Specific Commitments (WTO Document S/L/92, dated 28 March 2001).
7. For the purposes of Chapter 8 (Trade in Services), Japan reserves the right to adopt or maintain any measure with respect to permanent residents of another Party except those of a Party that has submitted a notification under subparagraph (k)(ii) 2 of Article XXVIII of GATS.
8. For the purposes of this List A, “JSIC” means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised on 30 October 2013.
1.
Sector : Agriculture, Forestry, and Fisheries, and Related Services (except those covered by entries No. 12 and No. 18 in List B of this Schedule) Subsector : - Industry Classification : JSIC 01 Agriculture JSIC 02 Forestry JSIC 03 Fisheries, except aquaculture JSIC 04 Aquaculture JSIC 6324 Agricultural cooperatives JSIC 6325 Fishery and fishery processing cooperatives JSIC 871 Agriculture, forestry and fisheries cooperative associations, n.e.c. Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and 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 agriculture, forestry, and fisheries, and related services (except those covered by entries No. 12 and No. 18 in List B of this Schedule) 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. (3) 3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result. Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
2.
Sector : Automobile Maintenance Business Subsector : Specified Motor Vehicle Maintenance and Repair Business Industry Classification : JSIC 89 Automobile maintenance services Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services A person who intends to conduct specified motor vehicle maintenance and repair businesses is required to establish a workplace in Japan and to obtain an approval of the Director-General of the District Transport Bureau having jurisdiction over the district where the workplace is located. Measures : Road Vehicle Law (Law No. 185 of 1951), Chapter 6
3.
Sector : Business Services Subsector : - Industry Classification : JSIC 9111 Employment services JSIC 9121 Worker dispatching services Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A person who intends to supply the following services for enterprises in Japan is required to have an establishment in Japan and to obtain permission from, or to submit notification to, the competent authority, as applicable: (a) private job placement services including fee- charging job placement services for construction workers and job placement services for seafarers; or (b) worker dispatching services including stevedore dispatching services, mariner dispatching services and work opportunities securing services for construction workers. 2. Labour supply services may be supplied only by a labour union which has obtained permission from the competent authority pursuant to the Employment Security Law or Mariner’s Employment Security Law. Measures : Employment Security Law (Law No. 141 of 1947), Chapters 3 and 3-3 Law Concerning Securing the Proper Operation of Worker Dispatching Undertakings and Protecting Dispatched Workers (Law No. 88 of 1985), Chapter 2 Port Labour Law (Law No. 40 of 1988), Chapter 4 Mariner’s Employment Security Law (Law No. 130 of 1948), Chapter 3 Law Concerning the Improvement of Employment of Construction Workers (Law No. 33 of 1976), Chapters 5 and 6
4.
Sector : Collection Agency Services Subsector : - Industry Classification : JSIC 6619 Miscellaneous financial auxiliaries JSIC 7299 Professional services, n.e.c. Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A person who intends to supply collection agency services which constitute the practice of law in respect of legal cases is required to be qualified as an attorney-at-law under the laws and regulations of Japan (“Bengoshi”), a legal professional corporation under the laws and regulations of Japan (“Bengoshi-hojin”), or a legal person established under the Special Measures Law Concerning Credit Management and Collection Business and to establish an office in Japan. 2. No person may take over and recover other person’s credits as business except a legal person established under the Special Measures Law Concerning Credit Management and Collection Business that handles credits pursuant to provisions of that law. Measures : Special Measures Law Concerning Credit Management and Collection Business (Law No. 126 of 1998), Articles 3 and 4 Attorney Law (Law No. 205 of 1949), Articles 72 and 73
5.
Sector : Construction Subsector : - Industry Classification : JSIC 06 Construction work, general including public and private construction work JSIC 07 Construction work by specialist contractor, except equipment installation work JSIC 08 Equipment installation work Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A person who intends to conduct construction business is required to establish a place of business in Japan and to obtain permission from the Minister of Land, Infrastructure, Transport and Tourism or from the prefectural governor having jurisdiction over the district where the place of business is located. 2. A person who intends to conduct demolition work business is required to establish a place of business in Japan and to be registered with the prefectural governor having jurisdiction over the district where the place of business is located. Measures : Construction Business Law (Law No. 100 of 1949), Chapter 2 Law Concerning Recycling of Construction Materials (Law No. 104 of 2000), Chapter 5
6.
Sector : Distribution Services Subsector : Wholesale Trade Services, Retailing Services, and Commission Agents’ Services, Related to Alcoholic Beverages Industry Classification : JSIC 5222 Liquors JSIC 5851 Liquor stores Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Description : Trade in Services The number of licences conferred to service suppliers in those subsectors may be limited, where it is necessary to maintain a supply-demand balance of liquors in order to secure liquor tax revenue (paragraph 11 of Article 10 of the Liquor Tax Law). Measures : Liquor Tax Law (Law No. 6 of 1953), Articles 9 through 11
7.
Sector : Education and Learning Support Subsector : Higher Educational Services Industry Classification : JSIC 816 Institutions of higher education Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. Higher educational services supplied as formal education in Japan are required to be supplied by formal education institutions. Formal education institutions are required to be established by school juridical persons. 2. “Formal education institutions” means elementary schools, lower secondary schools, secondary schools, compulsory education schools, upper secondary schools, universities, junior colleges, colleges of technology, schools for special needs education, kindergartens, and integrated centres for early childhood education and care. 3. “School juridical person” means a non-profit legal person established for the purposes of supplying educational services under the laws and regulations of Japan. Measures : Fundamental Law of Education (Law No. 120 of 2006), Article 6 School Education Law (Law No. 26 of 1947), Article 2 Private School Law (Law No. 270 of 1949), Article 3
8.
Sector : Financial Services Subsector : Banking and Other Financial Services (excluding Insurance and Insurance-Related Services) Industry Classification : JSIC 622 Banks, except central bank JSIC 631 Financial institutions for small businesses Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and Investment The deposit insurance system only covers financial institutions which have their head offices within the jurisdiction of Japan. The deposit insurance system does not cover deposits taken by branches of foreign banks. Measures : Deposit Insurance Law (Law No. 34 of 1971), Article 2
9.
Sector : Financial Services Subsector : Insurance and Insurance-related Services Industry Classification : JSIC 672 Non-life insurance institutions JSIC 6742 Non-life insurance agents and brokers Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Description : Trade in Services Commercial presence is in principle required for insurance contracts on the following items and any liability arising therefrom: (a) goods being transported within Japan; and (b) ships of Japanese registration which are not used for international maritime transport. Measures : Insurance Business Law (Law No. 105 of 1995), Articles 185, 186, 275 through 277, 286, and 287 Cabinet Order for Enforcement of Insurance Business Law (Cabinet Order No. 425 of 1995), Articles 19 and 39-2 Ministerial Ordinance for Enforcement of Insurance Business Law (Ministerial Ordinance of the Ministry of Finance No. 5 of 1996), Articles 116 and 212-6
10.
Sector : Heat Supply Subsector : - Industry Classification : JSIC 3511 Heat supply Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and 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 heat supply 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. Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
11.
Sector : Information and Communications Subsector : Telecommunications Industry Classification : JSIC 3700 Head offices primarily engaged in managerial operations JSIC 3711 Regional telecommunications, except wired broadcast telephones JSIC 3731 Services incidental to telecommunications Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. Nippon Telegraph and Telephone Corporation may not enter the name and address in its register of shareholders if the aggregate of the ratio of the voting rights directly or indirectly held by the persons set forth in subparagraphs (a) through (c) reaches or exceeds one-third: (a) a natural person who does not have Japanese nationality; (b) a foreign government or its representative; and (c) a foreign legal person or a foreign entity. 2. Any natural person who does not have Japanese nationality may not assume the office of member of the board of directors or auditor of Nippon Telegraph and Telephone Corporation, Nippon Telegraph and Telephone East Corporation, and Nippon Telegraph and Telephone West Corporation. Measures : Law Concerning Nippon Telegraph and Telephone Corporation, etc. (Law No. 85 of 1984), Articles 6 and 10
12.
Sector : Information and Communications Subsector : Telecommunications and Internet Based Services Industry Classification (4) : JSIC 3711 Regional telecommunications, except wired broadcast telephones JSIC 3712 Long-distance telecommunications JSIC 3713 Wired broadcast telephones JSIC 3719 Miscellaneous fixed telecommunications JSIC 3721 Mobile telecommunications JSIC 4011* Web portal providers JSIC 4012* Application services providers JSIC 4013 Internet support services Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Description : Trade in Services and 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 telecommunications business and internet based services 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. Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 28 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 4