India - Japan CEPA (2011)
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In the event 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.

3. Japanese air carriers or the companies having substantial control over the air carriers, such as holding companies, may reject the request from a natural person or an entity set forth in subparagraphs 2(a) through (c), who owns equity investments in such air carriers or companies, to enter its name and address in the register of shareholders, in the event such air carriers or companies become natural persons or entities referred to in subparagraph 2(d) by accepting such request.

4. Foreign air carriers are required to obtain permission of the Minister of Land, Infrastructure, Transportation and Tourism to conduct international air transport business.

5. 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.

6. A foreign aircraft may not be used for a flight and for transporting passengers or cargoes for remuneration, between points within Japan.

14.

Sector: Transport

Sub-Sector: Air Transport

Industry Classification: JSIC 4600 Head offices primarily engaged in managerial operations JSIC 4621 Aircraft service, except air transport

Type of Reservation: National Treatment (Article 85) 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 aerial work business in Japan.

2. 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 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), (bo) or (c).

In the event 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.

3.  A foreign aircraft may not be used for a flight between points within Japan.

15.

Sector: Transport

Sub-Sector: Air Transport (Registration of Aircraft in the National Register)

Industry  Classification:

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

Level of Government: Central Government

Measures: Civil Aeronautics Law (Law No. 231 of 1952), Chapter 2

Description:

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 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), (bo) or (c).

2. A foreign aircraft may not be registered in the national register.

16.

Sector: Transport

Sub-Sector: Freight Forwarding Business (excluding freight forwarding business using air transportation)

Industry Classification: JSIC 4441 Collect-and-deliver freight transport JSIC 4821 Deliver freight transport, except collect-and-deliver freight 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: 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)

Description: 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 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), (bo) or (c).

17.

Sector: Transport

Sub-Sector: Freight Forwarding Business (only freight forwarding business using air transportation)

Industry  Classification: JSIC 4441 Collect-and-deliver freight transport JSIC 4821 Deliver freight transport, except collect-and-deliver freight 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: 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)

Description:

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 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), (bo) or (c).

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

18.

Sector: Transport

Sub-Sector: Railway Transport

Industry  Classification: JSIC 42 Railway transport JSIC 4851 Railway facilities services

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 railway transport industry in Japan. The manufacture of vehicles, parts and components for the railway transport industry is not included in railway transport industry. Therefore, prior notification under the Foreign Exchange and Foreign Trade Law is not required for the investments in the manufacture of these products.

19.

Sector: Transport

Sub-Sector: Road Passenger Transport

Industry Classification: JSIC 4311 Common omnibus operators

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 omnibus industry in Japan. The manufacture of vehicles, parts and components for omnibus industry is not included in omnibus industry. Therefore, prior notification under the Foreign Exchange and Foreign Trade Law is not required for the investments in the manufacture of these products.

20.

Sector: Transport

Sub-Sector: Water Transport

Industry Classification: JSIC 452 Coastwise transport JSIC 453 Inland water transport JSIC 4542 Coastwise ship leasing

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 water transport industry in Japan. For greater certainty, "water transport industry" refers to oceangoing/seagoing transport, coastwise transport (i.e. maritime transport between ports within Japan), inland water transport and ship leasing industry. However, oceangoing/seagoing transport industry and ship leasing industry excluding coastwise ship leasing industry are exempted from the prior notification requirement.

21.

Sector: Transport

Sub-Sector: Water Transport

Industry Classification:

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

Level of Government: Central Government

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

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

22.

Sector: Water Supply and Waterworks

Sub-Sector: 

Industry Classification: JSIC 3611 Water for end users, except industrial users

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 water supply and waterworks industry in Japan.

Annex 9 Referred to in Chapter 8. Reservations for Measures referred to in paragraph 2 of Article 90

Part 1. Schedule of India

1. The Schedule of India sets out, pursuant to paragraph 2 of Article 90, the reservations taken by India with respect to specific sectors, sub-sectors 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 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) “Description” sets out the scope of the sector, sub-sector or activities covered by the reservation; and

(f) "Existing Measures" identifies, for transparency purposes, existing measures that apply to the sector, sub-sector or activities covered by the reservation.

3. In the interpretation of a reservation, all elements of the reservation shall be considered. The "Description" element shall prevail over all other elements.

4, For the purposes of this Part:

(a) the term "ISIC" means the International Standard Industrial Classification of All Economic Activities adopted, at its seventh session on August 27, 1948 and revised on May 22, 1989, by the Economic and Social Council of the United Nations; and

(b) the term "NIC" means National Industrial Classification Code, 1987 as set out by the Central Statistical Organisation of the Government of India.

1.

Sector: Agriculture

Sub-Sector: All agriculture activities like farming and plantation

Industry Classification: NIC: 00, 01, 03 ISIC: O1

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

Description: India reserves the right to adopt or maintain any measure with respect to farming and all agriculture activities except floriculture, horticulture, development of seeds, animal husbandry, pisciculture, aqua- culture and cultivation of vegetables and mushrooms under controlled conditions* and services related to agro and allied sectors.

* "Cultivation under controlled conditions" for the categories of floriculture, horticulture, cultivation of vegetables and mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where micro-climatic conditions are regulated anthropogenically.

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

Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.

Press Notes and Circulars on FDI Policy issued by the Central Government.

Plantation Labour Act, 1951 and all regulations/rules/orders issued thereunder.

Rubber Act, 1947 and all regulations/rules/orders issued thereunder.

Coffee Act, 1942 and all regulations/rules/orders issued thereunder.

Spice Board Act, 1986 and all regulations/rules/orders issued thereunder.

Spices Cess Act, 1986 and all regulations/rules/orders issued thereunder.

Tea Act, 1953 and all regulations/rules/orders issued thereunder.

Essential Commodities Act, 1955 and all regulations/rules/orders issued thereunder.

Agriculture Produce (Grading and Marking) Act, 1937 and all regulations/rules/orders issued thereunder.

Destructive Insects and Pests Act, 1914 and all regulations/rules/orders issued thereunder.

Coconut Development Board Act, 1979 and all regulations/rules/orders issued thereunder.

National Cooperative Development Cooperation Act, 1962 and all regulations/rules/orders issued thereunder.

The Seed Act, 1966 and all regulations/rules/orders issued thereunder.

The National Oilseeds and Vegetable

Oils Development Board Act, 1983 and all regulations/rules/orders issued thereunder.

2.

Sector: Farming of Animals

Sub-Sector: Farming of cattle, sheep goats, horses, asses, mules and hinnies; dairy farming including mixed farming

Industry Classification: NIC: 02, 03, 04 ISIC: O1

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

Description: India reserves the right to adopt or maintain any measure with respect to farming of animals.

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

Foreign Exchange Management Act, 1999 and all regulations/rules/orders issued thereunder.

  • 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