I don't review the proposed rule closely yet, but quickly find below is the main points.
- Make it encryption item to non-controlled item
This is not significant change for non-Japanese importer overseas, but for Japanese exporter who handles encryption item, long awaited and appreciated welcome change. This part is so-called "Mass market exemption which is noted in Note 3 of Category 5 part 2. In Japan, off course this exemption has been adopted and implemented, but the legal structure was a bit strange. The mass market exemption has been not Incorporated into the controlled items list, but set aside in Order and Notification. So what happens here is that, the item itself is "controlled" e.g. wit the reason of a "symmetric algorithm" employing a key length in excess of 56 bits, but as long as the item meets mass market requirement, it is no license required. In export customs declaration, such encryption items are regarded as "controlled" dual-use items, but eventually no license required based on the exemption provision on Export Trade Control Order Article 4 and related notification. This practice actually only increase the documentation work such as parameter sheet preparation. So, this change just gives comfortable impact to Japanese exporter by reducing paper work, but would be no significant impact to overseas traders. The judgment of mass market encryption items as "no license requirement" is essentially no change.
- Japanese dual-use list reflect update of Wassenaar Arrangement ("WA") December 2011
Adopt and reflect WA's latest change, December 2011 list, will be reflected into Japanese controlled items list. For example, in Category 4, 4A003, "Digital computers" having an 'Adjusted Peak Performance' ('APP') exceeding 3.0 Weighted TeraFLOPS (WT). Currently it is 1.5 WT.
- Bulgaria is added into White Countries
Bulgaria will be one of White Countries. The impact is, WMD catch-all screening is only for non-White Countries, so an exporter in Japan don't have to screen end-use & end-user for WMD catch-all control.
(Reference: http://search.e-gov.go.jp/servlet/Public?CLASSNAME=PCMMSTDETAIL&id=595112031 )