India - Japan CEPA (2011)
Previous page Next page

Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)

Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India. Any existing or current regulations or measures in force on the date of entry of this Agreement.

Description: India reserves the right to maintain any measure relating to investments in services sectors subject to the condition that they do not violate the obligations under Chapter 6.

20.

Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirement (Article 89)

Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.

Any existing or current regulations or measures in force on the date of entry of this Agreement.

Description: Any existing measures framed by the state governments/Union territories/local governments are not subject to either National Treatment, Most-Favoured-Nation Treatment or Prohibition of Performance Requirement obligations derived from the Articles in Chapter 8.

Part 2. Schedule of Japan

1. The Schedule of Japan sets out, pursuant to paragraph 1 of Article 90, the reservations taken by Japan with respect to existing measures that do not conform with obligations imposed by:

(a) Article 85;

(b) Article 86; or

(c) Article 89.

2. Each reservation sets out the following elements:

(a) “Sector” refers to the general sector in which the reservation is taken;

(b) “Sub-Sector” refers to the specific sector in which the reservation is taken;

(c) “Industry Classification” refers, where applicable, and only for transparency purposes, to the activity covered by the reservation according to domestic or international industry classification codes;

(d) “Type of Reservation” specifies the obligations referred to in paragraph 1 for which the reservation is taken;

(e) “Level of Government” indicates the level of government maintaining the measure for which the reservation is taken;

(f) “Measures” identifies the existing laws, regulations or other measures for which the reservation is taken. 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; and

(g) “Description” sets out, with regard to the obligations referred to in paragraph 1, the non-conforming aspects of the existing measures for which the reservation is taken.

3. In the interpretation of a reservation, all elements of the reservation shall be considered. A reservation shall be interpreted in the light of the relevant provisions of Chapter 8 against which the reservation is taken, and the "Measures" element shall prevail over all other elements.

4. For the purposes of this Part, the term "JSIC" means Japan Standard Industrial Classification set out by the Ministry of Internal Affairs and Communications, and revised on November 6, 2007.

1.

Sector: Agriculture, Forestry and Fisheries (Plant Breeder's Right)

Sub-Sector:

Industry  Classification: JSIC 0119 Miscellaneous crop farming JSIC 0243 Tree seed gathering and forest nursery services JSIC 0413 Seaweed aquaculture JSIC 0415 Seed aquaculture

Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86)

Level of Government: Central Government

Measures: Seeds and Seedlings Law (Law No. 83 of 1998), Article 10

Description: A foreigner who has neither a domicile nor residence (nor establishment, in the case of a legal person) in Japan cannot enjoy a plant breeder's right or related rights except in any of the following cases:

(a) where the country of which the person is a national or the country in which the person has a domicile or residence (or its establishment, in the case of a legal person) is a contracting party to the International Convention for the Protection of New Varieties of Plants of December 2, 1961, as Revised at Geneva on November 10, 1972, on October 23, 1978, and on March 19, 1991;

(b) where the country of which the person is a national or the country in which the person has a domicile or residence (or its establishment, in the case of a legal person) is a contracting party to the International Convention for the Protection of New Varieties of Plants of December 2, 1961, as Revised at Geneva on November 10, 1972 and on October 23, 1978 (hereinafter referred to in this Annex as "the 1978 UPOV Convention"), or a country in relation with which Japan shall apply the 1978 UPOV Convention in accordance with paragraph (2) of Article 34 of the 1978 UPOV Convention, and further provides the protection for plant genus and species to which the person's applied variety belongs; or

(c) where the country of which the person is a national provides Japanese nationals with the protection of varieties under the same condition as its own nationals (including a country which provides such protection for Japanese nationals under the condition that Japan allows enjoyment of the plant breeder's right or related rights for the nationals of that country), and further provides the protection for plant genus and species to which the person's applied variety belongs.

2.

Sector: Finance

Sub-Sector: Banking

Industry Classification: JSIC 622 Banks, except central bank JSIC 631 Financial institutions for small-businesses

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

Measures: Deposit Insurance Law (Law No. 34 of 1971), Article 2

Description: The deposit insurance system does not cover deposits taken by branches of foreign banks.

3.

Sector: Heat Supply

Sub-Sector:

Industry Classification: JSIC 3511 Heat supply

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in the heat supply.

4.

Sector: Information and Communications

Sub-Sector: Telecommunications

Industry  Classification: JSIC 3700 Head offices primarily engaged in managerial operations JSIC 3711 Regional telecommunications, except wire broadcast telephones JSIC 3731 Services incidental to telecommunications

Type of Reservation: National Treatment (Article 85) Prohibition of Performance Requirements (Article 89)

Level of Government: Central Government

Measures: Law Concerning Nippon Telegraph and Telephone Corporation (Law No. 85 of 1984), Articles 6 and 10

Description:

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 and/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 director or auditor of Nippon Telegraph and Telephone Corporation, Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation.

5.

Sector: Information and Communications

Sub-Sector: Telecommunications and Internet Based Services

Industry Classification: JSIC 3711 Regional telecommunications, except wire broadcast telephones JSIC 3712 Long-distance telecommunications JSIC 3719 Miscellaneous fixed telecommunications JSIC 3721 Mobile telecommunications JSIC 401 Internet based services. Note: The activities covered by the reservation under JSIC 3711, 3712, 3719, 3721 or 401 are limited to the activities which are subject to the registration obligation under Article 9 of the Telecommunications Business Law (Law No. 86 of 1984).

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in telecommunications business and internet based services.

6.

Sector: Manufacturing

Sub-Sector: Drugs and Medicines Manufacturing

Industry  Classification: JSIC 1653 Biological preparations

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in biological preparations manufacturing industry in Japan. For greater certainty, “biological preparations manufacturing industry” deals with economic activities in establishment which mainly produces vaccine, serum, toxoid, antitoxin and some preparations similar to the aforementioned products, or blood products.

7.

Sector: Manufacturing

Sub-Sector: Leather and Leather Products Manufacturing

Industry Classification: JSIC 1189 Textile apparel and accessories, n.e.c. JSIC 1694 Gelatine and adhesives JSIC 192 Rubber and plastic footwear and its findings JSIC 2011 Leather tanning and finishing JSIC 2021 Mechanical leather products, except gloves and mittens JSIC 2031 Cut stock and findings for boots and shoes JSIC 2041 Leather footwear JSIC 2051 Leather gloves and mittens JSIC 2061 Baggage JSIC 207 Handbags and small leather cases JSIC 2081 Fur skins JSIC 2099 Miscellaneous leather products JSIC 3253 Sporting and athletic goods.

Note 1: The activities covered by the reservation under JSIC 1189 or 3253 are limited to the activities related to leather and leather products manufacturing.

Note 2: The activities covered by the reservation under JSIC 1694 are limited to the activities related to animal glue (nikawa) and gelatine manufacturing.

Type of  Reservation: National Treatment (Article 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in leather and leather products manufacturing industry in Japan.

8.

Sector: Matters Related to the Nationality of a Ship

Sub-Sector:

Industry  Classification:

Type of Reservation: National Treatment (Article 85) Prohibition of Performance Requirements (Article 89)

Level of Government: Central Government

Measures: Ship Law (Law No. 46 of 1899), Article 1

Description: The Japanese nationality shall be given to a ship whose owner is a Japanese national, or a company established under Japanese law, of which all the representatives and not less than two-thirds of the executives administering the affairs are Japanese nationals.

9.

Sector: Mining

Sub-Sector:

Industry  Classification: JSIC 05 Mining and Quarrying of Stone and Gravel

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

Measures: Mining Law (Law No. 289 of 1950), Chapters 2 and 3

Description: Only a Japanese national or a Japanese legal person may have mining rights or mining lease rights.

10.

10 Sector: Oil Industry

Sub-Sector:

Industry Classification: 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 Paving materials JSIC 1799 Miscellaneous petroleum and coal products JSIC 4711 Ordinary warehousing JSIC 4721 Refrigerated warehousing JSIC 5331 Petroleum JSIC 6051 Petrol stations (gasoline service stations) JSIC 6052 Fuel stores, except gasoline service stations JSIC 9299 Miscellaneous business services, n.e.c.

Note 1: The activities covered by the reservation under JSIC 1741, 1799, 4711, 4721 or 6052 are limited to the activities related to oil industry.

Note 2: The activities covered by the reservation under JSIC 9299 are limited to the activities related to liquefied petroleum gas industry.

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in oil industry in Japan.  All organic chemicals such as ethylene, ethylene glycol and polycarbonates are outside the scope of the oil industry. Therefore, prior notification under the Foreign Exchange and Foreign Trade Law is not required for the investments in the manufacture of these products.

11.

Sector: Agriculture, Forestry and Fisheries, and Related Services (except Fisheries within the Territorial Sea, Internal Waters, Exclusive Economic Zone and Continental Shelf provided for in the reservation No. 7 in Schedule of Japan in Annex 9)

Sub-Sector:

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.

Type of Reservation: National Treatment (Article 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in agriculture, forestry and fisheries, and related services (except fisheries within the territorial sea, internal waters, exclusive economic zone and continental shelf provided for in the reservation No. 7 in Schedule of Japan in Annex 9) in Japan.

12.

Sector: Security Guard Services

Sub-Sector:

Industry  Classification: JSIC 9231 Guard services

Type of Reservation: National Treatment (Articles 85)

Level of Government: Central Government

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

Description: The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in security guard services in Japan.

13.

Sector: Transport

Sub-Sector: Air Transport

Industry Classification: JSIC 4600 Head offices primarily engaged in managerial operations JSIC 4611 Air transport

Type of Reservation: National Treatment (Article 85) Most-Favoured-Nation Treatment (Article 86) Prohibition of Performance Requirements (Article 89)

Level of Government: Central Government

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

Description:

1. The prior notification requirement under the Foreign Exchange and Foreign Trade Law applies to foreign investors who intend to make investments in air transport business in Japan.

2. Permission of the Minister of Land, Infrastructure, Transport and Tourism for conducting air transport business 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 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 more than one-third of the members of the board of directors are composed of the natural persons or entities referred to in subparagraph (a), (b) or (c); or a legal person of which more than one- third of the voting rights are held by the natural persons or entities referred to in subparagraph (a), (b) or (c).

  • Chapter   1 General Provisions 1
  • Article   1 Objectives 1
  • Article   2 Geographical Scope of Application 1
  • Article   3 General Definitions 1
  • Article   4 Transparency 1
  • Article   5 Administrative Procedures 1
  • Article   6 Review and Appeal 1
  • Article   7 Measures Against Corruption 1
  • Article   8 Environmental Protection 1
  • Article   9 Confidential Information 1
  • Article   10 Taxation 1
  • Article   11 Exceptions 1
  • Article   12 Relation to other Agreements 1
  • Article   13 Implementing Agreement 1
  • Article   14 Joint Committee 1
  • Article   15 Communications 2
  • Chapter   2 Trade In Goods 2
  • Article   16 Definitions 2
  • Article   17 Classification of Goods 2
  • Article   18 National Treatment 2
  • Article   19 Elimination of Customs Duties 2
  • Article   20 Customs Valuation 2
  • Article   21 Export Subsidies and Domestic Support 2
  • Article   22 Import and Export Restrictions 2
  • Article   23 Bilateral Safeguard Measures 2
  • Article   24 Anti-Dumping Investigation 2
  • Article   25 Restrictions to Safeguard the Balance of Payments 2
  • Chapter   3 Rules of Origin 2
  • Article   26 Definitions 2
  • Article   27 Originating Goods 2
  • Article   28 Wholly Obtained or Produced Goods 2
  • Article   29 Goods Produced Using Non-Originating Materials 2
  • Article   30 Calculation of Qualifying Value Content 2
  • Article   31 Accumulation 3
  • Article   32 De Minimis 3
  • Article   33 Non-Qualifying Operations 3
  • Article   34 Consignment Criteria 3
  • Article   35 Unassembled or Disassembled Goods 3
  • Article   36 Fungible Goods and Materials 3
  • Article   37 Indirect Materials 3
  • Article   38 Accessories, Spare Parts, Tools and Instructional or other Information Materials 3
  • Article   39 Packing and Packaging Materials and Containers 3
  • Article   40 Operational Certification Procedures 3
  • Article   41 Sub-Committee on Rules of Origin 3
  • Chapter   4 Customs Procedures 3
  • Article   42 Scope and Objectives 3
  • Article   43 Definition 3
  • Article   44 Transparency 3
  • Article   45 Customs Clearance 3
  • Article   46 Temporary Admission and Goods In Transit 3
  • Article   47 Advance Rulings 3
  • Article   48 Cooperation and Exchange of Information 3
  • Article   49 Sub-Committee on Customs Procedures 3
  • Chapter   5 Technical Regulations, Standards and Conformity Assessment Procedures, and Sanitary and Phytosanitary Measures 3
  • Article   50 Scope 3
  • Article   51 Reaffirmation of Rights and Obligations 3
  • Article   52 Enquiry Points 3
  • Article   53 Sub-Committee on Technical Regulations, Standards and Conformity Assessment Procedures, and SPS Measures 3
  • Article   54 Cooperation on Generic Medicine 3
  • Article   55 Mutual Recognition 3
  • Article   56 Non-Application of Chapter 14 3
  • Chapter   6 Trade In Services 3
  • Article   57 Scope 3
  • Article   58 Definitions 4
  • Article   59 Market Access 4
  • Article   60 National Treatment 4
  • Article   61 Additional Commitments 4
  • Article   62 Schedule of Specific Commitments 4
  • Article   63 Most-Favoured-Nation Treatment 4
  • Article   64 Domestic Regulation 4
  • Article   65 Recognition 4
  • Article   66 Transparency 4
  • Article   67 Monopolies and Exclusive Service Suppliers 4
  • Article   68 Payments and Transfers 4
  • Article   69 Restrictions to Safeguard the Balance of Payments 4
  • Article   70 Subsidies 4
  • Article   71 Review of Commitments 4
  • Article   72 Sub-Committee on Trade In Services 4
  • Chapter   7 Movement of Natural Persons 4
  • Article   73 General Principles 4
  • Article   74 Scope 4
  • Article   75 Definition 4
  • Article   76 Specific Commitments 5
  • Article   77 Regulatory Transparency 5
  • Article   78 General Principles for Grant of Entry and Temporary Stay and Related Issues 5
  • Article   79 Accompanying Spouse and Dependent 5
  • Article   80 Dispute Settlement 5
  • Article   81 Reservations 5
  • Article   82 Further Negotiations 5
  • Chapter   8 Investment 5
  • Article   83 Scope 5
  • Article   84 Definitions 5
  • Article   85 National Treatment 5
  • Article   86 Most-Favoured-Nation Treatment 5
  • Article   87 General Treatment 5
  • Article   88 Access to the Courts of Justice 5
  • Article   89 Prohibition of Performance Requirements 5
  • Article   90 Reservations and Exceptions 5
  • Article   91 Special Formalities and Information Requirements 5
  • Article   92 Expropriation and Compensation 5
  • Article   93 Protection from Strife 5
  • Article   94 Transfers 5
  • Article   95 Subrogation 5
  • Article   96 Settlement of Investment Disputes between a Party and an Investor of the other Party 5
  • Article   97 Temporary Safequard Measures 6
  • Article   98 Prudential Measures 6
  • Article   99 Environmental Measures 6
  • Article   100 Relation to other Obligations 6
  • Article   101 Duration and Termination 6
  • Chapter   9 Intellectual Property 6
  • Article   102 General Provisions 6
  • Article   103 Streamlining of Procedural Matters 6
  • Article   104 Promotion of Public Awareness Concerning Protection of Intellectual Property 6
  • Article   105 Patents 6
  • Article   106 Trademarks 6
  • Article   107 Geographical Indications 6
  • Article   108 Unfair Competition 6
  • Article   109 Security Exceptions 6
  • Chapter   10 Government Procurement 6
  • Article   110 Procurement Principle 6
  • Article   111 Non-Discrimination 6
  • Article   112 Exchange of Information 6
  • Article   113 Further Negotiations 6
  • Article   114 Negotiations on Non-Discrimination 6
  • Article   115 Exceptions 6
  • Chapter   11 Competition 6
  • Article   116 Anticompetitive Activities 6
  • Article   117 Definitions 6
  • Article   118 Cooperation on Controlling Anticompetitive Activities 6
  • Article   119 Non-Discrimination 6
  • Article   120 Procedural Fairness 6
  • Article   121 Transparency 6
  • Article   122 Non-Application of Chapter 14 6
  • Chapter   12 Improvement of Business Environment 6
  • Article   123 Basic Principles 6
  • Article   124 Sub-Committee on Improvement of Business Environment 6
  • Article   126 Liaison Office 6
  • Article   127 Non-Application of Chapter 14 6
  • Chapter   13 Cooperation 6
  • Article   128 Basic Principle and Objectives 6
  • Article   129 Fields of Cooperation 6
  • Article   130 Scope and Forms of Cooperation 7
  • Article   131 Implementation and Costs 7
  • Article   132 Non-Application of Chapter 14 7
  • Chapter   14 Dispute Settlement 7
  • Article   133 Scope 7
  • Article   134 Consultations 7
  • Article   135 Good Offices, Conciliation or Mediation 7
  • Article   136 Establishment of Arbitral Tribunals 7
  • Article   137 Functions of Arbitral Tribunals 7
  • Article   138 Proceedings of Arbitral Tribunals 7
  • Article   139 Termination of Proceedings 7
  • Article   140 Implementation of Award 7
  • Article   141 Expenses 7
  • Chapter   15 Final Provisions 7
  • Article   143 Table of Contents and Headings 7
  • Article   144 Annexes and Notes 7
  • Article   145 Amendment 7
  • Article   146 Entry Into Force 7
  • Article   147 Termination 7
  • Annex 8 Referred to in Chapter 8  Reservations for Measures referred to in paragraph 1 of Article 90 7
  • Part   1 Schedule of India 7
  • 1 7
  • 2 7
  • 3 7
  • 4 8
  • 5 8
  • 6 8
  • 7 8
  • 8 8
  • 9 8
  • 10 8
  • 11 8
  • 12 9
  • 13 9
  • 14 9
  • 15 9
  • 16 9
  • 17 9
  • 18 9
  • 19 9
  • 20 10
  • Part   2 Schedule of Japan 10
  • 1 10
  • 2 10
  • 3 10
  • 4 10
  • 5 10
  • 6 10
  • 7 10
  • 8 10
  • 9 10
  • 10 10
  • 11 10
  • 12 10
  • 13 10
  • 14 11
  • 15 11
  • 16 11
  • 17 11
  • 18 11
  • 19 11
  • 20 11
  • 21 11
  • 22 11
  • Annex 9 Referred to in Chapter 8  Reservations for Measures referred to in paragraph 2 of Article 90 11
  • Part   1 Schedule of India 11
  • 1 11
  • 2 11
  • 3 12
  • 4 12
  • 5 12
  • 6 12
  • 7 12
  • 8 12
  • 9 12
  • 10 12
  • 11 12
  • 12 12
  • 13 12
  • 14 12
  • 15 13
  • 16 13
  • 17 13
  • 18 13
  • 19 13
  • 20 13
  • 21 13
  • 22 13
  • 23 13
  • 24 13
  • Part   2 Schedule of Japan 13
  • 1 13
  • 2 13
  • 3 13
  • 4 13
  • 5 14
  • 6 14
  • 7 14
  • 8 14
  • 9 14
  • 10 14
  • Annex 10 referred to in Chapter 8  Expropriation 14