As amendment of FEFTL was officially approved by Diet yesterday, this will be entry into force within one year. This amendment will impose more strict export controls on technology transfers. Although the Cabinet Order and Ministerial Ordinance is not yet announced, which provide more details for implementation, I will raise some concerns in this new rule.
(1) Japanese export rule Extra Territorial??
Unlike US export control, current Japanese export control rule is NOT extra territorial.
However, by reading the amended law carefully, it is understood that the new amended rule can be applied to non-residents, thus it may be extra territorial export control!
For example to be specific, new article 25 of FEFTL says,
"When a resident or a non-resident intends to conduct transactions・・・ with a non-resident, shall obtain ・・・ permission ・・・ to the transactions."
Current law stipulate only from a resident to a non-resident, but amended new law include a non-resident as one who need to obtain export license. This may mean the law covers the transaction from third country to third country by foreigners. This may give broad interpretation that Japanese export control may be extra territorial.
As long as I have heard, METI don't have intention to make the implementation be extra territorial. However, trader need to check more details notification closely after it is announced.
If required, encourage to make public comment in concerned points.
If somebody find loophole in law, such guy may enforce the law intentionally with unexpected way.