As reported in this blog on June 23 this year, the document retention period in Japan is to be extended from current 5 years to 7 years, based on the amendment of Foreign Exchange and Foreign Trade Law ("FEFTL") effective on November 1, 2009.
Please find below the reason of period extension.
http://japantradecompliance.blogspot.com/2009/06/documents-retention-period-to-be.html
Today as of September 30, the more detailed announcement is released by METI, it is still in draft level, though. The summary is as follows.
1) Document retention 7 years: Basically METI encourage 7 years period of export related document, but it is only for WMD related documents because of the statute of limitations in its violation. This rule is limited to items of Export Trade Control Order and Foreign Exchange Order Appendix category 2 - 4, and WMD related business in catch-all control. (Japanese appendix category 2 - 4 means, NSG, AG, and MTCR items.)
2) 5 years retention is still acceptable for Non-WMD items. This is for above mentioned Appendix category 5 - 14 of both Orders. (This means most of Wassenaar dual-use items.)
3) ICP update is required. For companies who submit ICP to METI, it is necessary to update the document retention article and re-submit to METI. The companies who have general bulk license need to submit annual check list to METI every July. They need to reflect this document retention period in this annual report. Don't forget it next July.
4) From November 1 onward, the WMD related documents (or Appendix category 2 - 4) should be kept for 7 years.
I'm still wondering, for a company who only deal wassenaar dual-use items and don't have NSG, AG and MTCR items, they don't have to extend the document retention period. However, the difficulty is in WMD catch-all control case, which cover most of industrial items excluding food and wooden products. Such general items can be used for WMD purpose and cannot predict future end-use and end-user. This point would raise many questions to METI.
Also, Customs Act in Japan prescribe the document retention period as 5 years in its Article 94 for export goods. It is not scheduled to be changed so far regardless of FEFTL amendment.
(Source: http://search.e-gov.go.jp/servlet/Public?CLASSNAME=Pcm1010&BID=595109078&OBJ )
2009年9月29日火曜日
New bulk export license for intercompany trade
Ministry of Economy, Trade and Industry ("METI") of Japan announced new bulk export license system for inter company trade to seek public comment on September 29, 2009.
This is special bulk license for 100% Japanese owned company (as parent company) to export overseas subsidiary which corporate share is more than 50 percent. The new bulk license is available for inter company trade between Japanese parent company and overseas subsidiary, while the export compliance training and audit is mandatory for granting the bulk license and the ultimate end-use is the subsidiary of Japanese company.
The new bulk license is called "Special Subsidiary Bulk Export License" and covers both goods and technology.
According to the draft of the notice, the overseas subsidiary is classified to Type A and Type B.
Type A special subsidiary is an end-user of items, while Type B is an importer of items.
Type B is supposed to be a subsidiary of trade house and sell items to Type A subsidiary in the imported country.
The items covered by this bulk license is broader than General Bulk License which is currently available for the company who have and implement solid ICP.
The Special Subsidiary License covers much broader items and the ship-to country and applicable items are identified in matrix of current bulk export license. In general, it covers NSG, MTCR, AG and Wassenaar controlled items, except very sensitive items and some high risk ship-to countries.
However, the bulk license is not valid in exporting to (and transship via) Iran, Iraq, North Korea and Libya.
Also, if it comes to be known that the item is to be used for WMD purpose, the license is not applicable and the exporter must report to METI.
This new inter-company bulk license is still in draft level and under public comment until October 27, the details may be changed later.
This is initiative by METI to grant more flexibility to well managed company, while Japanese government tighten the export control in technology transfer from coming November.
Looking at the definition of license holder, this new bulk license is not applicable for foreign companies in Japan, even if the company is registered as K.K. It is described as Shareholder is resident (= Japanese). Unfortunately, this system is for "genuine" Japanese companies.
(Source: http://search.e-gov.go.jp/servlet/Public?CLASSNAME=Pcm1010&BID=595109070&OBJCD=&GROUP=)
This is special bulk license for 100% Japanese owned company (as parent company) to export overseas subsidiary which corporate share is more than 50 percent. The new bulk license is available for inter company trade between Japanese parent company and overseas subsidiary, while the export compliance training and audit is mandatory for granting the bulk license and the ultimate end-use is the subsidiary of Japanese company.
The new bulk license is called "Special Subsidiary Bulk Export License" and covers both goods and technology.
According to the draft of the notice, the overseas subsidiary is classified to Type A and Type B.
Type A special subsidiary is an end-user of items, while Type B is an importer of items.
Type B is supposed to be a subsidiary of trade house and sell items to Type A subsidiary in the imported country.
The items covered by this bulk license is broader than General Bulk License which is currently available for the company who have and implement solid ICP.
The Special Subsidiary License covers much broader items and the ship-to country and applicable items are identified in matrix of current bulk export license. In general, it covers NSG, MTCR, AG and Wassenaar controlled items, except very sensitive items and some high risk ship-to countries.
However, the bulk license is not valid in exporting to (and transship via) Iran, Iraq, North Korea and Libya.
Also, if it comes to be known that the item is to be used for WMD purpose, the license is not applicable and the exporter must report to METI.
This new inter-company bulk license is still in draft level and under public comment until October 27, the details may be changed later.
This is initiative by METI to grant more flexibility to well managed company, while Japanese government tighten the export control in technology transfer from coming November.
Looking at the definition of license holder, this new bulk license is not applicable for foreign companies in Japan, even if the company is registered as K.K. It is described as Shareholder is resident (= Japanese). Unfortunately, this system is for "genuine" Japanese companies.
(Source: http://search.e-gov.go.jp/servlet/Public?CLASSNAME=Pcm1010&BID=595109070&OBJCD=&GROUP=)
2009年9月24日木曜日
BIS advisory Downloads of encrypted software
As of September 11, 2009, BIS published advisory of downloading of encrypted software reviewed and classified as mass market, to be downloaded free of charge to anyone from the company's website without restriction.
http://www.bis.doc.gov/policiesandregulations/advisoryopinions/encryption_internet_ao.pdf
The advisory mention it would not be in violation of EAR if it posts mass market encryption software on the Internet for free and anonymous download and then at a later time the software is downloaded by an anonymous person in embargo countries such as Iran, Cuba, Syria, Sudan or North Korea.
The BIS advisory don't mention any company's name for this case determination.
It may be some relation with the case is for Mozilla Firefox open source project below.
During a recent Firefox download event, Mozilla posted a map on its Web site showing where downloads were occurring. It became clear that a substantial number of downloads were coming from Iran. Mozilla then had knowledge that it was exporting to Iran, which could have put it in violation of the U.S export regulations, exposing the firm to criminal and financial penalties. At that point, Mozilla made a voluntary disclosure to federal authorities in the hopes of securing a no-violation letter.
http://www.internetnews.com/government/article.php/3839831/Mozilla+Firefox+Cleared+of+US+Export+Rules.htm
http://www.bis.doc.gov/policiesandregulations/advisoryopinions/encryption_internet_ao.pdf
The advisory mention it would not be in violation of EAR if it posts mass market encryption software on the Internet for free and anonymous download and then at a later time the software is downloaded by an anonymous person in embargo countries such as Iran, Cuba, Syria, Sudan or North Korea.
The BIS advisory don't mention any company's name for this case determination.
It may be some relation with the case is for Mozilla Firefox open source project below.
During a recent Firefox download event, Mozilla posted a map on its Web site showing where downloads were occurring. It became clear that a substantial number of downloads were coming from Iran. Mozilla then had knowledge that it was exporting to Iran, which could have put it in violation of the U.S export regulations, exposing the firm to criminal and financial penalties. At that point, Mozilla made a voluntary disclosure to federal authorities in the hopes of securing a no-violation letter.
http://www.internetnews.com/government/article.php/3839831/Mozilla+Firefox+Cleared+of+US+Export+Rules.htm
2009年9月10日木曜日
U.S. amend Cuba Trade Restrictions
The U.S. Treasury Department and the U.S. Department of Commerce have amended regulations that will facilitate commercial contact with Cuba, without signaling an end to the longstanding U.S. embargo of that country.
For U.S. exporters, there are two important changes. First, the Office of Foreign Assets Control (OFAC) has amended regulations to greatly expand the range of commercial telecommunications transactions with Cuba, such as cellular and satellite communications. In addition, OFAC has authorized a general license that will enable employees of producers or distributors of medical or agricultural products (including food) to travel to Cuba to engage in the marketing, sales negotiation, accompanied delivery, or servicing in Cuba of agricultural commodities, medicine, or medical devices eligible under the Department of Commerce's export or re-export licensing policy to Cuba.
All previous travel to Cuba was required to take place pursuant to a specific license issued by OFAC.
For U.S. exporters, there are two important changes. First, the Office of Foreign Assets Control (OFAC) has amended regulations to greatly expand the range of commercial telecommunications transactions with Cuba, such as cellular and satellite communications. In addition, OFAC has authorized a general license that will enable employees of producers or distributors of medical or agricultural products (including food) to travel to Cuba to engage in the marketing, sales negotiation, accompanied delivery, or servicing in Cuba of agricultural commodities, medicine, or medical devices eligible under the Department of Commerce's export or re-export licensing policy to Cuba.
All previous travel to Cuba was required to take place pursuant to a specific license issued by OFAC.
2009年9月3日木曜日
China Becomes World's Largest Exporter
For the first time, China overtook Germany as the world's biggest exporter during the first half of 2009, the World Trade Organization reported Tuesday.
From January through June 2009, China's total export volume amounted to $521.7 billion, slightly exceeding Germany's exports, which totaled $521.6 billion.
Germany has long been the biggest exporter of goods and services but has been closely followed by China in recent years. In 2007, Germany exported $1.32 trillion of goods over the full year while China's exports reached $1.22 trillion, according to the WTO. However, between 2000 and 2007 China's exports grew by an average annual rate of 25 percent, while Germany's exports grew by only 13 percent a year.
A WTO spokesperson said China and Germany remain very close in the competition, and it is too soon to say if China will overtake Germany as the world's largest goods exporter for all of 2009. The final results will depend on several unknown factors, including foreign exchange rates and the pace of economic recovery in the various markets that buy exports from China and Germany in coming months.
China Becomes Japan's Largest Trading Partner in First Half of 2009
China becomes Japan's biggest trading partner in both exports and imports in the first six months this year, as the global economic downturn affected Japan-U.S. trade more seriously, the Japan External Trade Organization (JETRO) said Wednesday.
http://news.xinhuanet.com/english/2009-08/19/content_11912240.htm
From January through June 2009, China's total export volume amounted to $521.7 billion, slightly exceeding Germany's exports, which totaled $521.6 billion.
Germany has long been the biggest exporter of goods and services but has been closely followed by China in recent years. In 2007, Germany exported $1.32 trillion of goods over the full year while China's exports reached $1.22 trillion, according to the WTO. However, between 2000 and 2007 China's exports grew by an average annual rate of 25 percent, while Germany's exports grew by only 13 percent a year.
A WTO spokesperson said China and Germany remain very close in the competition, and it is too soon to say if China will overtake Germany as the world's largest goods exporter for all of 2009. The final results will depend on several unknown factors, including foreign exchange rates and the pace of economic recovery in the various markets that buy exports from China and Germany in coming months.
China Becomes Japan's Largest Trading Partner in First Half of 2009
China becomes Japan's biggest trading partner in both exports and imports in the first six months this year, as the global economic downturn affected Japan-U.S. trade more seriously, the Japan External Trade Organization (JETRO) said Wednesday.
http://news.xinhuanet.com/english/2009-08/19/content_11912240.htm
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