India - Japan CEPA (2011)
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Sector: Industrial Explosives, Safety Fuse, Detonators, Fireworks

Sub-Sector:

Industry Classification: NIC: 30

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 which is non- conforming to the obligations on Prohibition of Performance Requirements in Chapter 8 with respect to manufacture of industrial explosives, safety fuse, detonators, fireworks sector, including manufacture, use, sale, storage, transport, importation, exportation and possession of arms and explosives.

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.

Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.

Explosives Act, 1884 and all regulations/rules/orders issued thereunder.

Explosive Substances Act, 1908 and all regulations/rules/orders issued thereunder.

Inflammable Substances Act, 1952 and all regulations/rules/orders issued thereunder.

Indian Boilers Act, 1923 and all regulations/rules/orders issued thereunder.

16.

Sector: Manufacture of Hazardous Chemicals

Sub-Sector:

Industry Classification:

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 which is non-conforming to the obligations on Prohibition of Performance Requirements in Chapter 8 with respect to regulating the manufacture, use, sale, storage, transport, importation, exportation and possession of hazardous chemicals.

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.

Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.

Environment (Protection) Act, 1986  and all regulations/rules/orders issued thereunder.

17.

Sector: Tobacco Stemming and Manufacturing of Products containing Tobacco or Tobacco Substitutes, including Manufacture of Bidi

Sub-Sector: Stemming of tobacco, redrying and all operations connected with preparing raw leaf tobacco, manufacture of bidi, snuff, chewing tobacco and other products containing tobacco or tobacco substitutes

Industry Classification: NIC: 22 ISIC: 12

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 regulating the manufacture, sale use, transportation, import, export of tobacco and tobacco products, including stemming of tobacco, redrying and all operations connected with preparing raw leaf tobacco, manufacture of bidi, snuff, chewing tobacco and other products containing tobacco or tobacco substitutes.

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.

Companies Act, 1956 and all regulations/rules/orders issued thereunder.

Industries (Development and Regulation) Act, 1951 and all regulations/rules/orders issued thereunder.

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 and all regulations/rules/orders issued thereunder.

18.

Sector: Drugs and Pharmaceuticals

Sub-Sector:

Industry Classification: ISIC: 21

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 issue guidelines necessary or required for the issue of compulsory licences of patents to produce and market a patented drug or pharmaceutical. India also reserves the right to formulate and bring into effect a policy to ensure abundant availability at reasonable prices of good quality essential drugs and pharmaceuticals of mass consumption.

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.

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

19.

Sector: All Services Sectors

Sub-Sector:

Industry Classification:

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 relating to investments in services sectors subject to the condition that they do not violate the obligations under Chapter 6.

Existing 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.

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)

Description: India reserves the right to adopt or maintain any measure relating to investments as per the laws and regulations framed by the state governments/Union territories/local governments.

Existing 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.

21.

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)

Description: India reserves the right to adopt or maintain any measure that accords rights or preferences to economically backward regions or groups in the interest of balanced development of the economy and maintenance of social equality.

Existing Measures: Article 73 Of the Constitution of India Read with Article 246 of the Constitution of India.Any Existing or Current Regulation or measures in force on the date of entry of this Agreement.

22.

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)

Description: India reserves the right to adopt or maintain any measure with regard to transfer or disposition of equity interests or assets held by the state enterprises or Governmental authorities.

India reserves the right to adopt or maintain any measure with respect to the transfer of all or any portion of services provided in the exercise of the governmental authority.

A state-owned enterprise shall mean any enterprise owned or controlled by the Government of India or any of the state governments/Union territories/local governments by means of equity ownership and shall include any enterprise created, on or after the effective date of this Agreement, for the sole purpose of selling or disposing of equity interests or assets of an existing state-owned enterprise or Government entity.

Existing 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.

23.

Sector: Acquisition of Land

Sub-Sector:

Industry Classification:

Type of Reservation: National Treatment (Article 85)

Description: India reserves the right to adopt or maintain any measure with respect to the acquisition of land (including agricultural land) by non-residents.

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.

Transfer of Property Act, 1882 and all regulations/rules/orders issued thereunder.

The Registration Act, 1908 and all regulations/rules/orders issued thereunder.

The Indian Stamp Act, 1899 and all regulations/rules/orders issued thereunder.

The Land Acquisition Act, 1894 and all regulations/rules/orders issued thereunder.

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

24.

Sector: All Sectors

Sub-Sector:

Industry Classification:

Type of Reservation: Prohibition of Performance Requirement (Article 89)

Description: India reserves the right to adopt or maintain any measure relating to Technology Transfer and Senior Management Board of Directors.

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.

Transfer of Property Act, 1882 and all regulations/rules/orders issued thereunder.

The Registration Act, 1908 and all regulations/rules/orders issued thereunder.

The Indian Stamp Act, 1899 and all regulations/rules/orders issued thereunder.

The Land Acquisition Act, 1894 and all regulations/rules/orders issued thereunder.

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

Part 2. Schedule of Japan

1. The Schedule of Japan sets out, pursuant to paragraph 2 of Article 90, the reservations taken by Japan 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, 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: All Sectors

Sub-Sector:

Industry Classification:

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

Description: 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 the other Party or their investments;

(o) impose limitations on the ability of investors of the other 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.

Existing Measures:

2.

Sector: All Sectors

Sub-Sector:

Industry Classification:

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

Description:

In the event where the supply of telegraph services, postal services and betting and gambling services, manufacture of tobacco products, manufacture of Bank of Japan notes, minting and sale of coinage in Japan, which are restricted to designated enterprises or governmental entities, are liberalised to those other than the designated enterprises or governmental entities, or in the event where such designated enterprises or governmental entities no longer operate on a non-commercial basis, Japan reserves the right to adopt or maintain any measure relating to those activities.

Existing Measures:

3.

Sector: All Sectors

Sub-Sector:

Industry Classification:

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

Description: National Treatment and Most-Favoured- Nation Treatment may not be accorded to investors of the other Party and their investments with respect to subsidies.

Existing Measures:

4.

Sector: Aerospace Industry

Sub-Sector: Aircraft Industry, Space Industry

Industry Classification:

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

Description: Japan reserves the right to adopt or maintain any measure relating to investment in aircraft industry and space industry.

Existing Measures: Foreign Exchange and Foreign Trade Law (Law No. 228 of 1949), Articles 27 and 30, Cabinet Order on Foreign Direct, Investment (Cabinet Order No. 261 of 1980), Articles 3 and 5

  • 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