13.
Sector : Manufacturing and Information and Communications Subsector : Manufacture of Electronic Parts, Devices, and Electronic Circuits and Information Services Industry Classification : JSIC 2814 Integrated circuits JSIC 2831 Semiconductor memory media JSIC 2832 Optical discs and magnetic tapes and discs JSIC 2842 Electronic circuit implementation board JSIC 3011 Communication equipment wired JSIC 3012 Mobile phone and PHS JSIC 3013 Radio communication equipment JSIC 3031 Computer, except personal computer JSIC 3032 Personal computer JSIC 3033 External storages JSIC 3911 Custom software services JSIC 3912 Embedded software services JSIC 3913 Package software services JSIC 3921 Data processing 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 manufacturing industry of electronic parts, devices, and electronic circuits and information service 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), Articles 27 and 28 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 and 4
14.
Sector : Manufacturing Subsector : Shipbuilding and Repairing, and Marine Engines Industry Classification : JSIC 3131 Shipbuilding and repairing Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Description : Trade in Services A person who intends to establish or extend docks, which can be used to manufacture or repair vessels of 500 gross tonnage or more or 50 metres in length or more, is required to obtain permission from the Minister of Land, Infrastructure, Transport and Tourism. The issuance of a licence is subject to the requirements of an economic needs test. Measures : Shipbuilding Law (Law No. 129 of 1950), Articles 2 through 3-2
15.
Sector : Manufacturing Subsector : Drugs and Medicines, and Medical Devices Manufacturing Industry Classification (5) : JSIC 165* Medicines JSIC 1653 Biological preparations Pharmaceutical intermediates in JSIC Division E (Manufacturing), which relate to JSIC 165 and 1653. JSIC 274* Medical instruments and apparatus, and medical supplies JSIC 296* Electronic equipment JSIC 2973* Medical measuring instruments Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Description (6) : 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 biological preparations manufacturing industry, manufacturing industry of agents against pathogenic organisms and parasites, and their pharmaceutical intermediates, and manufacturing industry of specially-controlled medical devices and their accessories, and components of specially-controlled medical devices or their accessories 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
16.
Sector : Manufacturing Subsector : Leather and Leather Products Manufacturing Industry Classification (7) : JSIC 1189*1 Textile apparel and accessories, n.e.c. JSIC 1694*2 Gelatine and adhesives JSIC 192 Rubber and plastic footwear and its findings JSIC 2011 Leather tanning and finishing JSIC 2021 Mechanical and industrial leather products, except gloves and mittens JSIC 2031 Cut stock and findings for leather footwear JSIC 2041 Leather footwear JSIC 2051 Leather gloves and mittens JSIC 2061 Baggage JSIC 207 Handbags and small cases JSIC 2081 Fur skins JSIC 2099 Miscellaneous tanning leather products JSIC 3253*1 Sporting and athletic goods 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 leather and leather products manufacturing 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.(8) 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
17.
Sector : Matters Related to the Nationality of a Ship Subsector : - Industry Classification : - 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. Nationality requirement applies to the supply of international maritime transport services (including services of passenger transportation and freight transportation) through establishment of a registered company operating a fleet flying the Japanese flag. 2. “Nationality requirement” means that the ship is required to be owned by a Japanese national, or a company established under the laws and regulations of Japan, of which all the representatives and not less than two-thirds of the executives administering the affairs are Japanese nationals. Measures : Ship Law (Law No. 46 of 1899), Article 1
18.
Sector : Measuring Services Subsector : - Industry Classification : JSIC 7441 Commodity inspection services JSIC 745 Surveyor certification Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description9 : Trade in Services 1. A person who intends to supply services of conducting the periodic inspection of specified measuring instruments is required to establish a legal person in Japan and to be designated by the prefectural governor having jurisdiction over the district where the person intends to conduct such inspection, or by the mayor of a designated city or the chief of a designated ward or village in case the place where the person intends to conduct such inspection is located within the district of such designated city, ward or village. 2. A person who intends to supply services of conducting the verification of specified measuring instruments is required to establish a legal person in Japan and to be designated by the Minister of Economy, Trade and Industry. A person who intends to conduct measurement certification business, including specified measurement certification business, is required to have an establishment in Japan and to be registered with the prefectural governor having jurisdiction over the district where an establishment is located. 4. A person who intends to supply services of conducting the inspection of specified measuring instruments used for the measurement certification is required to establish a legal person in Japan and to be designated by the prefectural governor having jurisdiction over the district where the person intends to conduct such inspection. 5. A person who intends to supply services of conducting the accreditation for a person engaged in specified measurement certification business is required to establish a legal person in Japan, and to be designated by the Minister of Economy, Trade and Industry. 6. A person who intends to supply services of conducting the calibration of measuring instruments is required to establish a legal person in Japan and to be designated by the Minister of Economy, Trade and Industry. Measures : Measurement Law (Law No. 51 of 1992), Chapters 3, 5, 6, and 8 Regulations on Measurement Law (Ministerial Ordinance of the Ministry of International Trade and Industry No. 69 of 1993) Ministerial Ordinance for Designated Inspection Body, Designated Verification Body, Designated Measurement Certification Inspection Body and Specified Measurement Certification Accreditation Body (Ministerial Ordinance of the Ministry of International Trade and Industry No. 72 of 1993)
19.
Sector : Medical, Health Care, and Welfare Subsector : - Industry Classification : JSIC 8599 Miscellaneous social insurance, social welfare and care services Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services Only an association of business proprietors or a federation of such associations approved by the Minister of Health, Labour and Welfare under the laws and regulations of Japan may conduct labour insurance businesses entrusted by business proprietors. An association which intends to conduct such labour insurance businesses under the laws and regulations of Japan is required to establish an office in Japan, and to obtain the approval of the Minister of Health, Labour and Welfare. Measures : Law Concerning Collection of Labour Insurance Premium (Law No. 84 of 1969), Chapter 4 Enforcement Regulations for the Law Concerning Collection of Labour Insurance Premium (Ministerial Ordinance of the Ministry of Labour No. 8 of 1972)
20.
Sector : Mining and Services incidental to Mining Subsector : - Industry Classification : JSIC 05 Mining and quarrying of stone and gravel Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services and Investment Only a Japanese national or a Japanese legal person may have mining rights or mining lease rights.(10) Measures : Mining Law (Law No. 289 of 1950), Chapters 2 and 3
21.
Sector : Oil Industry Subsector : - Industry Classification (11) : JSIC 053 Crude petroleum and natural gas production JSIC 1711 Petroleum refining JSIC 1721 Lubricating oils and greases (not made in petroleum refineries) JSIC 1741*1 Paving materials JSIC 1799*1 Miscellaneous petroleum and coal products JSIC 4711*1 Ordinary warehousing, except refrigerated warehousing JSIC 4721*1 Refrigerated warehousing JSIC 5331 Petroleum JSIC 6051 Gasoline stations JSIC 6052*1 Fuel stores, except gasoline stations JSIC 9299*2 Miscellaneous business services, 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 the oil 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. (12) 3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result. 4. All organic chemicals such as ethylene, ethylene glycol, and polycarbonates are outside the scope of the oil 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. 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
22.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7211 Lawyers’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply legal services is required to be qualified as an attorney-at-law under the laws and regulations of Japan (“Bengoshi”) and to establish an office within the district of the local bar association to which the natural person belongs. 2. An enterprise which intends to supply legal services is required to establish a legal professional corporation under the laws and regulations of Japan (“Bengoshi- Hojin”). Measures : Attorney Law (Law No. 205 of 1949), Chapters 3 through 5 and 9
23.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7211 Lawyers’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply legal advisory services concerning foreign laws is required to be qualified as a registered foreign lawyer under the laws and regulations of Japan (“Gaikokuho-Jimu-Bengoshi”) and to establish an office within the district of the local bar association to which the natural person belongs. 2. Gaikokuho-Jimu-Bengoshi under the laws and regulations of Japan is required to stay in Japan for not less than 180 days per year. 3. An enterprise which intends to supply legal advisory services concerning foreign laws is required to establish a registered foreign lawyer corporation under the laws and regulations of Japan (“Gaikokuho-Jimu-Bengoshi-Hojin”). Measures : Law on Special Measures Concerning the Handling of Legal Services by Foreign Lawyers (Law No. 66 of 1986), Chapters 2, 4, and 5
24.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7212 Patent attorneys’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply patent attorney services is required to be qualified as a patent attorney under the laws and regulations of Japan (“Benrishi”). 2. An enterprise which intends to supply patent attorney services is required to establish a patent business corporation under the laws and regulations of Japan (“Tokkyo-Gyomu-Hojin”). Measures : Patent Attorney Law (Law No. 49 of 2000), Chapters 3, 6, and 8
25.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7221 Notaries public’s and judicial scriveners’ offices Level of Government : Central Government Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. Only a Japanese national may be appointed as a notary in Japan. 2. The notary is required to establish an office in the place designated by the Minister of Justice. Measures : Notary Law (Law No. 53 of 1908), Chapters 2 and 3
26.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7221 Notaries public’s and judicial scriveners’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply judicial scrivener services is required to be qualified as a judicial scrivener under the laws and regulations of Japan (“Shiho-Shoshi”) and to establish an office within the district of the judicial scrivener association to which the natural person belongs. 2. An enterprise which intends to supply judicial scrivener services is required to establish a judicial scrivener corporation under the laws and regulations of Japan (“Shiho-Shoshi-Hojin”). Measures : Judicial Scrivener Law (Law No. 197 of 1950), Chapters 3 through 5, 7, and 10
27.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7241 Certified public accountants’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply certified public accountants services is required to be qualified as a certified public accountant under the laws and regulations of Japan (“Koninkaikeishi”). 2. An enterprise which intends to supply certified public accountants services is required to establish an audit corporation under the laws and regulations of Japan (“Kansa-Hojin”). Measures : Certified Public Accountant Law (Law No. 103 of 1948), Chapters 3, 5-2, and 7
28.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7242 Certified tax accountants’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply certified public tax accountant services is required to be qualified as a certified public tax accountant under the laws and regulations of Japan (“Zeirishi”) and to establish an office within the district of the certified public tax accountant association to which the natural person belongs. 2. An enterprise which intends to supply certified public tax accountant services is required to establish a certified public tax accountant corporation under the laws and regulations of Japan (“Zeirishi-Hojin”). Measures : Certified Public Tax Accountant Law (Law No. 237 of 1951), Chapters 3, 4, and 5-2 through 7 Enforcement Regulation on Certified Public Tax Accountant Law (Ministerial Ordinance of the Ministry of Finance No. 55 of 1951)
29.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7231 Administrative scriveners’ offices JSIC 7294 Certified real estate appraisers JSIC 7299 Professional services, n.e.c. JSIC 7421 Architectural design services Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services An architect or building engineer, qualified as such under the laws and regulations of Japan (“Kenchikushi”), or a person employing such an architect or building engineer, who intends to conduct business of design, superintendence of construction work, administrative work related to construction work contracts, supervision of building construction work, survey and evaluation of buildings, and representation in procedures under the laws and regulations of Japan concerning construction, upon request from others for remuneration, is required to establish an office in Japan. Measures : Architect and Building Engineer Law (Law No. 202 of 1950), Chapters 1, 2, and 6
30.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7251 Certified social insurance and labour consultants’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply social insurance and labour consultant services is required to be qualified as a certified social insurance and labour consultant under the laws and regulations of Japan (“Shakai-Hoken-Romushi”) and to establish an office in Japan. 2. An enterprise which intends to supply social insurance and labour consultant services is required to establish a certified social insurance and labour consultant corporation under the laws and regulations of Japan (“Shakai-Hoken-Romushi-Hojin”). Measures : Certified Social Insurance and Labour Consultant Law (Law No. 89 of 1968), Chapters 2-2, and 4-2 through 5
31.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7231 Administrative scriveners’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply administrative scrivener services is required to be qualified as an administrative scrivener under the laws and regulations of Japan (“Gyosei-Shoshi”) and to establish an office within the district of the administrative scrivener association to which the natural person belongs. 2. An enterprise which intends to supply administrative scrivener services is required to establish an administrative scrivener corporation under the laws and regulations of Japan (“Gyosei-Shoshi-Hojin”). Measures : Administrative Scrivener Law (Law No. 4 of 1951), Chapters 3 through 5 and 8
32.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7299 Professional services n.e.c. Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Description : Trade in Services Maritime procedure agent services are required to be supplied by a natural person who is qualified as a maritime procedure agent under the laws and regulations of Japan (“Kaijidairishi”). Measures : Maritime Procedure Agents Law (Law No. 32 of 1951), Article 17
33.
Sector : Professional Services Subsector : - Industry Classification : JSIC 7222 Land and house surveyors’ offices Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. A natural person who intends to supply land and house surveyor services is required to be qualified as a land and house surveyor under the laws and regulations of Japan (“Tochi-Kaoku-Chosashi”) and to establish an office within the district of the land and house surveyor association to which the natural person belongs. 2. An enterprise which intends to supply land and house surveyor services is required to establish a land and house surveyor corporation under the laws and regulations of Japan (“Tochi-Kaoku-Chosashi-Hojin”). Measures : Land and House Surveyor Law (Law No. 228 of 1950), Chapters 3 through 5, 7 and 10
34.
Sector : Real Estate Subsector : - Industry Classification : JSIC 6811 Sales agents of buildings and houses JSIC 6812 Land subdividers and developers JSIC 6821 Real estate agents and brokers JSIC 6941 Real estate managers 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 building lots and buildings transaction business is required to establish an office in Japan and to obtain a licence from the Minister of Land, Infrastructure, Transport and Tourism or from the prefectural governor having jurisdiction over the district where the office is located. 2. A person who intends to conduct real estate syndication business is required to establish an office in Japan and to obtain permission from or to be registered with the competent Minister or from the prefectural governor having jurisdiction over the district where the office is located or to submit notification to the competent Minister. 3. A person who intends to conduct condominiums management business is required to establish an office in Japan and to be registered in the list maintained by the Ministry of Land, Infrastructure, Transport and Tourism. Measures : Building Lots and Buildings Transaction Business Law (Law No. 176 of 1952), Chapter 2 Real Estate Syndication Law (Law No. 77 of 1994), Chapters 2, and 5 through 7 Law Concerning Improving Management of Condominiums (Law No. 149 of 2000), Chapter 3
35.
Sector : Real Estate Appraisal Services Subsector : - Industry Classification : JSIC 7294 Certified real estate appraisers 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 supply real estate appraisal services is required to establish an office in Japan and to be registered in the list maintained by the Ministry of Land, Infrastructure, Transport and Tourism or the prefecture having jurisdiction over the district where the office is located. Measures : Law Concerning the Appraisal of Real Estate (Law No. 152 of 1963), Chapter 3
36.
Sector : Seafarers Subsector : - Industry Classification : JSIC 031 Marine fisheries JSIC 451 Oceangoing transport JSIC 452 Coastwise transport Level of Government : Central Government Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Description : Trade in Services Foreign nationals employed by Japanese enterprises except for the seafarers referred to in the relevant official notifications may not work on vessels flying the Japanese flag. Measures : Mariners Law (Law No. 100 of 1947), Chapter 4 Official Notification of the Director General of Seafarers Department, Maritime Technology and Safety Bureau of the Ministry of Transport, No. 115, 1990 Official Notification of the Director General of Seafarers Department, Maritime Technology and Safety Bureau of the Ministry of Transport, No. 327, 1990 Official Notification of the Director General of Maritime Bureau of the Ministry of Land, Infrastructure and Transport, No. 153, 2004
37.
Sector : Security Guard Services Subsector : - Industry Classification : JSIC 923 Guard 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 security guard 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), Article 27 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Article 3
38.
Sector : Services Related to Occupational Safety and Health Subsector : - Industry Classification : JSIC 7299 Professional services, n.e.c. JSIC 7441 Commodity inspection services JSIC 7452 Environmental surveying certification JSIC 8222 Vocational guidance centers 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 supply inspection or verification services for working machines, skill training courses, and other related services in connection with occupational safety and health, or working environment measurement services is required to be resident or to establish an office in Japan, and to be registered with the Minister of Health, Labour and Welfare or Director-General of the Prefectural Labour Bureau. Measures : Industrial Safety and Health Law (Law No. 57 of 1972), Chapters 5 and 8 Ministerial Ordinance for Registration and Designation related to Industrial Safety and Health Law, and Orders based on the Law (Ministerial Ordinance of the Ministry of Labour No. 44 of 1972) Working Environment Measurement Law (Law No. 28 of 1975), Chapters 2 and 3 Enforcement Regulation of the Working Environment Measurement Law (Ministerial Ordinance of the Ministry of Labour No. 20 of 1975)
39.
Sector : Surveying Services Subsector : - Industry Classification : JSIC 7422 Surveying 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 supply surveying services is required to establish a place of business in Japan and to be registered with the Minister of Land, Infrastructure, Transport and Tourism. Measures : Survey Law (Law No. 188 of 1949), Chapter 6
40.
Sector : Transport Subsector : Air Transport Industry Classification : JSIC 4600 Head offices primarily engaged in managerial operations JSIC 4611 Air transport Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Senior Management and Board of Directors (Article 10.7) 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 air transport business 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.(13) 3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result. 4. Permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting air transport businesses as a Japanese air carrier is not granted to the following natural persons or entities applying for the permission: (a) a natural person who does not have Japanese nationality; (b) a foreign country, or a foreign public entity or its equivalent; (c) a legal person or other entity constituted under the laws and regulations of any foreign country; and (d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b), or (c); a legal person of which one-third or more of the directors are composed of the natural persons or entities referred to in subparagraph (a), (b), or (c); or a legal person of which one-third or more of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b), or (c). In the event that an air carrier becomes a natural person or an entity referred to in subparagraphs (a) through (d), the permission will lose its effect. The conditions for the permission also apply to companies, such as holding companies, which have substantial control over the air carriers. 5. A Japanese air carrier or a company having substantial control over such air carrier, such as a holding company, may reject the request from a natural person or an entity set forth in subparagraphs 4(a) through (c), who owns equity investments in such air carrier or company, to enter its name and address in the register of shareholders, in the event that such air carrier or company becomes a legal person referred to in subparagraph 4(d) by accepting such request. 6. Foreign air carriers are required to obtain permission of the Minister of Land, Infrastructure, Transport and Tourism to conduct international air transport business. 7. Permission of the Minister of Land, Infrastructure, Transport and Tourism is required for the use of foreign aircraft for air transportation of passengers or cargoes to and from Japan for remuneration. 8. A foreign aircraft may not be used for a flight between points within Japan. 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 Civil Aeronautics Law (Law No. 231 of 1952), Chapters 7 and 8
41.
Sector : Transport Subsector : Air Transport Industry Classification : JSIC 4600 Head offices primarily engaged in managerial operations JSIC 4621 Aircraft service, except air transport 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. 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 aerial work business 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. (14) 3. The investor may be required to alter the content of the investment or discontinue the investment process, depending on the screening result. 4. Permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting aerial work business is not granted to the following natural persons or entities applying for the permission: (a) a natural person who does not have Japanese nationality; (b) a foreign country, or a foreign public entity or its equivalent; (c) a legal person or other entity constituted under the laws and regulations of any foreign country; and (e) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b), or (c); a legal person of which one-third or more of the directors are composed of the natural persons or entities referred to in subparagraph (a), (b), or (c); or a legal person of which one-third or more of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b), or (c). In the event that a person conducting aerial work business becomes a natural person or an entity referred to in subparagraphs (a) through (d), the permission will lose its effect. The conditions for the permission also apply to companies, such as holding companies, which have substantial control over the person conducting aerial work business. 5. A foreign aircraft may not be used for a flight between points within Japan. 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 Civil Aeronautics Law (Law No. 231 of 1952), Chapters 7 and 8
42.
Sector : Transport Subsector : Registration of Aircraft in the National Register Industry Classification : - 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. An aircraft owned by any of the following natural persons or entities may not be registered in the national register: (a) a natural person who does not have Japanese nationality; (b) a foreign country, or a foreign public entity or its equivalent; (c) a legal person or other entity constituted under the laws and regulations of any foreign country; and (d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b), or (c); a legal person of which one-third or more of the directors are composed of the natural persons or entities referred to in subparagraph (a), (b), or (c); or a legal person of which one-third or more of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b), or (c). 2. A foreign aircraft may not be registered in the national register. Measures : Civil Aeronautics Law (Law No. 231 of 1952), Chapter 2
43.
Sector : Transport Subsector : Customs Brokerage Industry Classification : JSIC 4899 Services incidental to transport, 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 A person who intends to conduct customs brokerage business is required to have a place of business in Japan and to obtain permission of the Minister of Finance. Measures : Customs Brokerage Law (Law No. 122 of 1967), Chapter 2 ANNEX III – JAPAN – 53 44. Sector : Transport Subsector : Freight Forwarding Business (excluding freight forwarding business using air transportation) Industry Classification : JSIC 4441 Collect-and-deliver freight transport JSIC 4821 Freight transport, except collect-and-deliver freight transport Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. The following natural persons or entities 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 business using international shipping. Such registration shall be made, or such permission or approval shall be granted, on the basis of reciprocity: (a) a natural person who does not have Japanese nationality; (b) a foreign country, or a foreign public entity or its equivalent; (c) a legal person or other entity constituted under the laws and regulations of any foreign country; and (d) a legal person represented by the natural persons or entities referred to in subparagraph(a), (b), or (c); a legal person of which one-third or more of the directors are composed of the natural persons or entities referred to in subparagraph (a), (b), or (c); or a legal person of which one-third or more of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b), or (c). 2. A person who intends to conduct freight forwarding business is required to establish an office in Japan, and to be registered with, or to obtain permission or approval of, the Minister of Land, Infrastructure, Transport and Tourism. Measures : Freight Forwarding Business Law (Law No. 82 of 1989), Chapters 2 through 4 Enforcement Regulation of Freight Forwarding Business Law (Ministerial Ordinance of the Ministry of Transport No. 20 of 1990)
45.
Sector : Transport Subsector : Freight Forwarding Business (only freight forwarding business using air transportation) Industry Classification : JSIC 4441 Collect-and-deliver freight transport JSIC 4821 Freight transport, except collect-and-deliver freight transport Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. The following natural persons or entities may not conduct freight forwarding business using air transportation between points within Japan: (a) a natural person who does not have Japanese nationality; (b) a foreign country, or a foreign public entity or its equivalent; (c) a legal person or other entity constituted under the laws and regulations of any foreign country; and (d) a legal person represented by the natural persons or entities referred to in subparagraph (a), (b), or (c); a legal person of which one-third or more of the directors are composed of the natural persons or entities referred to in subparagraph (a), (b), or (c); or a legal person of which one-third or more 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 paragraph 1 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 business using international air transportation. Such registration shall be made, or such permission or approval shall be granted, on the basis of reciprocity. Measures : Freight Forwarding Business Law (Law No. 82 of 1989), Chapters 2 through 4 Enforcement Regulation of Freight Forwarding Business Law (Ministerial Ordinance of the Ministry of Transport No. 20 of 1990)
46.
Sector : Transport Subsector : Railway Transport Industry Classification : JSIC 421 Railway transport JSIC 4851 Railway facilities 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 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. 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
47.
Sector : Transport Subsector : Road Passenger Transport Industry Classification : JSIC 4311 Common omnibus operators 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 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 the omnibus industry is not included in the 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. 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
48.
Sector : Transport Subsector : Road Transport Industry Classification : JSIC 431 Common omnibus operators JSIC 432 Common taxicab operators JSIC 433 Chartered omnibus operators JSIC 4391 Motor passenger transport (particularly- contracted) JSIC 441 Common motor trucking JSIC 442 Motor trucking (particularly-contracted) JSIC 443 Mini-sized vehicle freight transport 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 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 Special Measures Law concerning the proper management and revitalisation of the taxi business in specified and semi-specified regions (Law No. 64 of 2009) 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 or 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 such businesses would become difficult. Measures : Road Transport Law (Law No. 183 of 1951), Chapter 2 Special Measures Law concerning the proper management and revitalisation of the taxi business in specified and semi-specified regions (Law No. 64 of 2009), Chapters 2 and 7 Trucking Business Law (Law No. 83 of 1989), Chapter 2
49.
Sector : Transport Subsector : Services Incidental to Transport Industry Classification : JSIC 4852 Fixed facilities for road transport Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Description : 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 a licence 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. Measures : Road Transport Law (Law No. 183 of 1951), Chapter 4
50.
Sector : Transport Subsector : Services Incidental to Transport Industry Classification : - Level of Government : Central Government Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services 1. Only a Japanese national may become a pilot in Japan. 2. Pilots directing ships in the same pilotage district are required to establish a pilot association for the pilotage district. Measures : Pilotage Law (Law No. 121 of 1949), Chapters 2 through 4
51.
Sector : Transport Subsector : Water transport Industry Classification : JSIC 451 Oceangoing transport Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6) Description : 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. Measures : Law Concerning Special Measures against Unfavourable Treatment to Japanese Oceangoing Ship Operators by Foreign Government (Law No. 60 of 1977)
52.
Sector : Transport Subsector : Water Transport Industry Classification : JSIC 452 Coastwise transport JSIC 453 Inland water transport JSIC 4542 Coastwise ship leasing 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 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. (15) 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 or seagoing transport, coastwise transport (i.e. maritime transport between ports in Japan), inland water transport and ship leasing industry. However, oceangoing or 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. 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
53.
Sector : Transport Subsector : Water Transport Industry Classification : - Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Description : Trade in Services and Investment Unless otherwise specified in the 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 ports in Japan. Measures : Ship Law (Law No. 46 of 1899), Article 3
54.
Sector : Vocational Skills Test Subsector : - Industry Classification : - Level of Government : Central Government Type of Obligation : Market Access (Article 8.5) Local Presence (Article 8.11) Description : 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. Measures : Human Resources Development Promotion Law (Law No. 64 of 1969), Chapter 5
55.
Sector : Water Supply and Waterworks Subsector : - Industry Classification : JSIC 3611 Water for end users, except industrial users 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 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. 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
56.
Sector : Wholesale and Retail Trade Subsector : Livestock Industry Classification : JSIC 5219 Miscellaneous agricultural, livestock and aquatic products Level of Government : Central Government Type of Obligation : Local Presence (Article 8.11) Description : 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. Measures : Livestock Dealer Law (Law No. 208 of 1949), Article 3
57.
Sector : Aerospace Industry Subsector : Aircraft Manufacturing and Repairing Industry Industry Classification (16) : JSIC 16* Manufacture of chemical and allied products JSIC 18* Manufacture of plastic products, except otherwise classified JSIC 19* Manufacture of rubber products JSIC 21* Manufacture of ceramic, stone and clay products JSIC 23* Manufacture of non-ferrous metals and products JSIC 24* Manufacture of fabricated metal products JSIC 25* Manufacture of general-purpose machinery JSIC 27* Manufacture of business oriented machinery JSIC 28* Electronic parts, devices and electronic circuits JSIC 29* Manufacture of electrical machinery, equipment and supplies JSIC 30* Manufacture of information and communication electronics equipment JSIC 31* Manufacture of transportation equipment JSIC 39* Information services JSIC 90* Machine, etc. repair services, except otherwise classified Level of Government : Central Government Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) 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 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 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. Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27, 28 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 through 5 Aircraft Manufacturing Industry Law (Law No. 237 of 1952), Articles 2 through 5
List B. Explanatory Notes
1. This List B sets out, in accordance with paragraph 2 of Article 8.8 (Schedules of Non-Conforming Measures) and paragraph 2 of Article 10.8 (Reservations and Non-Conforming Measures), the entries made by Japan with respect to specific sectors, subsectors, or activities for which it may maintain existing, or adopt new or more restrictive, 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). (17), (18)
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) Type of Obligation specifies the obligations referred to in paragraph 1 for which the entry is made;
(e) Description sets out the scope of the sector, subsector, or activities covered by the entry; and
(f) Existing Measures identifies, for transparency purposes, existing measures that apply to the sector, subsector, or activities covered by the entry.
3. In the interpretation of an entry, all elements of the entry shall be considered. The Description 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 B, 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 B, 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 B:
(a) “JSIC” means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised on 30 October 2013.
(b) “CPC” means Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991).
1.
Sector : All Sectors Subsector : - Industry Classification : - 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. When transferring or disposing of its equity interests in, or the assets of, a state enterprise or a governmental entity, Japan reserves the right to: (a) prohibit or impose limitations on the ownership of such interests or assets by investors of another Party or their investments; (b) impose limitations on the ability of investors of another Party or their investments as owners of such interests or assets to control any resulting enterprise; or (c) adopt or maintain any measure relating to the nationality of executives, managers or members of the board of directors of any resulting enterprise. 2. Notwithstanding paragraph 1, the central level of the Government of Japan shall not adopt any prohibition, limitation, or measure referred to in paragraph 1 by new laws or regulations following the initial transfer from the central level of the Government of Japan to an investor of the interests or assets referred to in paragraph 1.(19) Existing Measures : -
2.
Sector : All Sectors Subsector : - Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment in or the supply of telegraph services, betting and gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes, minting and sale of coinage, and postal services in Japan. (20) Existing Measures : Telecommunications Business Law (Law No. 86 of 1984) Supplementary Provisions, Article 5 Postal Law (Law No. 165 of 1947), Article 2 Law Concerning Correspondence Delivery Provided by Private Operators (Law No. 99 of 2002) Horse Racing Law (Law No. 158 of 1948), Article 1-2 Law relating to Motorboat Racing (Law No. 242 of 1951), Article 2 Bicycle Racing Law (Law No. 209 of 1948), Article 1 Auto Racing Law (Law No. 208 of 1950), Article 3 Lottery Law (Law No. 144 of 1948), Article 4 Bank of Japan Act (Law No. 89 of 1997), Articles 46 and 49 The Law relating to Unit of Currency and Issue of Coin (Law No. 42 of 1987), Articles 4 and 10 Sports Promotion Lottery Law (Law No. 63 of 1998), Article 3
3.
Sector : All Sectors Subsector : - Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in industries other than those recognised or other than those that should have been recognised by the Government of Japan owing to the circumstances at the time of entry into force of this Agreement. 2. Any industries classified positively and explicitly in JSIC or CPC, at the time of entry into force of this Agreement should have been recognised by the Government of Japan at that time. 3. Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in industries which were not technically feasible at the time of entry into force of this Agreement. Existing Measures : -
4.
Sector : All Sectors Subsector : - Industry Classification : - Type of Obligation : Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Description : Trade in Services and Investment 1. Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement in force on, or signed prior to, the date of entry into force of this Agreement, and any amendment to and the successor agreement of that bilateral or multilateral agreement. 2. Japan reserves the right to adopt or maintain any measure that accords differential treatment to countries under any bilateral or multilateral agreement involving: (a) fisheries; or (b) maritime matters, including salvage. Existing Measures : -
5.
Sector : All Sectors Subsector : - Industry Classification : - Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6) Description : Trade in Services Japan reserves the right to adopt or maintain any measure with respect to the supply of a service through the mode of supply referred to in subparagraph (r)(iv) of Article 8.1 (Definitions), subject to Chapter 9 (Temporary Movement of Natural Persons) and Japan’s Schedule in Annex IV (Schedules of Specific Commitments on Temporary Movement of Natural Persons). Existing Measures : -
6.
Sector : Aerospace Industry Subsector : Space Industry Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. Japan reserves the right to adopt or maintain any measure relating to investment in space industry. 2. Japan reserves the right to adopt or maintain any measure relating to the supply of services in space industry including: (a) services based on technological introduction contracts for importing technology for development, production, or use; (b) production services on fee or contract basis; (c) repair and maintenance services; and (d) space transportation services. Existing Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27, 28 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 through 5
7.
Sector : Arms and Explosives Industry Subsector : Arms Industry Explosives Manufacturing Industry Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment 1. Japan reserves the right to adopt or maintain any measure relating to investment in arms industry and explosives manufacturing industry. 2. Japan reserves the right to adopt or maintain any measure relating to the supply of services in arms industry and explosives manufacturing industry, including: (a) services based on technological introduction contracts for importing technology for development, production, or use; (b) production services on fee or contract basis; and (c) repair and maintenance services. Existing Measures : Ordnance Manufacturing Law (Law No. 145 of 1953), Article 5 Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27, 28 and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 through 5
8.
Sector : Education and Learning Support Subsector : Primary and Secondary Educational Services Industry Classification : JSIC 811 Kindergartens JSIC 812 Elementary schools JSIC 813 Lower secondary schools JSIC 814 Upper secondary schools, secondary schools JSIC 815 School for special needs education JSIC 819 Integrated centres for early childhood education and care Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Local Presence (Article 8.11) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment in or the supply of primary and secondary educational services. Existing 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 Law concerning Advancement of Comprehensive Service Related to Education, Child Care, etc. of Preschool Children (Law No. 77 of 2006)
9.
Sector : Energy Subsector : Electricity Utility Industry Gas Utility Industry Nuclear Energy Industry Industry Classification : - Type of Obligation : National Treatment (Articles 8.4 and 10.3) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Articles 8.6 and 10.4) Local Presence (Article 8.11) Prohibition of Performance Requirements (Article 10.6) Senior Management and Board of Directors (Article 10.7) Description : Trade in Services and Investment Japan reserves the right to adopt or maintain any measure relating to investment or the supply of services in the energy industry listed in the “Subsector” element. Existing Measures : Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27, 28, and 30 Cabinet Order on Foreign Direct Investment (Cabinet Order No. 261 of 1980), Articles 3 through 5
10.
Sector : Financial Services Subsector : Banking and Other Financial Services (excluding Insurance and Insurance-related Services) Industry Classification : - Type of Obligation : National Treatment (Article 8.4) Market Access (Article 8.5) Most-Favoured-Nation Treatment (Article 8.6) Description : Trade in Services 1. Japan reserves the right to adopt or maintain any measure with respect to trade in services as defined in subparagraph (r)(i) of Article 8.1 (Definitions) for banking and other financial services, other than provision and transfer of financial information and financial data processing as referred to in subparagraph (b)(xv) of Article 1 (Definitions) of Annex 8A (Financial Services) and advisory and other auxiliary services, excluding intermediation, relating to banking and other financial services as referred to in subparagraph (b)(xvi) of Article 1 (Definitions) of Annex 8A (Financial Services). (21) 2. Japan reserves the right to adopt or maintain any measure with respect to trade in services as defined in subparagraph (r)(ii) of Article 8.1 (Definitions) for banking and other financial services, other than the services as referred to in subparagraphs (b)(v) through (xvi) of Article 1 (Definitions) of Annex 8A (Financial Services). Existing Measures : Financial Instruments and Exchange Law (Law No. 25 of 1948), Articles 29, 29-2, and 61