2011年12月31日土曜日

Japan Lifts Ban on Export of Weapons Policy

Japan’s cabinet decided and officially announced as comment of Chief Cabinet Secretary on Dec 27, 2011 that Japanese government effectively lift a government policy of prohibiting weapons shipments that has banned Japanese arms makers export military items for joint development of military technology. This government policy change to abandon the Cold War-era restrictions was decided because Japan seeks to minimize costs for developing and manufacturing advanced military technology in areas such as a joint development program of jet fighters with the U.S. While there have been case-by-case exceptions in the past, such as return shipment to originating country, this decision is first major revision since the ban was introduced in 1967 and tightened in 1976. Japan’s commitment to refrain from arms exports, declared in its so-called “Three Principles”, was designed to prevent weapons shipments to the communist bloc at the height of the Cold War, as well as to countries under United Nations arms embargoes and war zones. Although the revision has been hotly debated for years, that proposal has been pending by strong opposition from a minority partner in Japan’s coalition government.


While Japan’s government policy is changed accordingly, the export related law and regulations such as Foreign Export and Foreign Trade Law and following Orders and Notifications are not expected to be amended. The basic policy to authorize export license of military items continue to be denial, and only for exceptional cases such as co-development of arms with U.S. and allies, the license may be granted with strict end-use review by Ministry of Economy, Trade and Industry (“METI”) which is export licensing government authority in Japan. In order to prevent proliferation and diversion risk to concerned countries, very strict license review by METI is likely to be conducted. From trader’s point of view, relax of prohibiting export of military item is likely to be limited effect only to the government involved transactions.

(Resource - Japanese: http://www.kantei.go.jp/jp/tyokan/noda/20111227DANWA.pdf )
(Resource - English: http://www.kantei.go.jp/foreign/noda/topics/201112/20111227DANWA_e.pdf )

2011年12月22日木曜日

Export control vs nationality discremination

I find thought-provoking news article in Asahi News Paper on Dec 20.

http://ajw.asahi.com/article/behind_news/AJ201112200022


On Dec 19, Tokyo District Court sentenced as illegal that Tokyo Institute of Technology ("TIT" or locally called "Tokyo Koudai") rejected the admission of Iranian national to TIT's nuclear reactor engineering research center because of concern in nuclear related technology transfer to Iran.

Tokyo District Court mentioned TIT's refusal of the entrance is "against Constitution and discriminating treatment to nationality".

For export control professional, this is dilemma and very touchy issue, technology transfer concern vs nationality discrimination. From TIT's point of view, nuclear related technology education to Iranian national may lead to violation of FEFTL and TIT insist "to prevent nuclear proliferation concern, we follow UNSCR".

Above is university's case, but industry increasingly try to hire foreign nationals than ever, nationality and export control is sensitive issue, as this court case shows.

2011年12月9日金曜日

METI update WMD Proliferation Concerned Parties List on Dec 9, 2011

According to the public announcement in METI export control web site, METI announced updated Foreign Users List (WMD Proliferation Concerned Parties List) on December 9, 2011.
This is the second update of this year following September 1st, 2011.

METI added 18 Iranian entities, and 2 entities in UAE, making it total 374 entities.  This is to reflect UNSCR 1929 which is against Iran's missile and WMD activities. 

Unique point is the entity of UAE have never been in this list.  Below UAE entities are first UAE entities in this list.
  • Modern Technologies FZC (MTFZC)
  • Qualitest FZE
The list is available in below URL and update part is highlighted in color.
http://www.cistec.or.jp/members/report/express/111209/3_t08kaisei_kaiteikasho.pdf

2011年12月7日水曜日

Export Control Violation again in Japan

According to major news papers in Japan on Dec 7, 2011, an export control violation is reported again in non-license export of carbon fiber to Taiwan and Hong Kong.  Below is the news paper article.

http://www.yomiuri.co.jp/national/news/20111207-OYT1T00634.htm

The point of this violation case study is wrong use of low value license exemption.  In order to shorten shipment lead time (by skipping the METI license application), the company falsely declared the value of the export items under JYP 50,000.  We can know from this article what was the item category number.
I will make more analysis on this case study later. 

The company web site who is supposed to make violation is here: http://www.krefine.com/en/guidance/index.html