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The Economic Leaders Meeting

The Osaka Initial Actions

We the leaders announce the initial actions of each of our economies for liberalization and facilitation of trade and investment as attached. These actions represent the first wide-ranging initiatives of APEC members to accelerate the implementation of our Uruguay Round commitments, to deepen and broaden the outcomes of the Uruguay Round and to launch deregulation measures.

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• Australia
• Brunei Darussalam
• Canada
• Chile
• the People's Republic of China
• Hong Kong
• Indonesia
• Japan
• the Republic of Korea
• Malaysia
• Mexico
• New Zealand
• Papua New Guinea
• the Republic of the Philippines
• Singapore
• Chinese Taipei
• Thailand
• the United States of America

• Japan's Initial Actions Reference Materials

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AUSTRALIA: INITIAL INDIVIDUAL ACTIONS

1. Accelerated Implementation of Uruguay Round Tariff Bindings

   Australia will bring forward, by one year, the date on which its final Uruguay Round tariff bindings apply for up to two thirds of those items where bindings are phasing down (that is, up to 2800 tariff lines). For industrial products where bindings are accelerated, this will mean that the final bound rates will be achieved on 1 January, 1998. For agricultural products, they will be achieved on 1 January, 1999. Details of the specific items which will be subject to accelerated bindings in this way will be notified in 1996.
   Date of Measure: Announced on 19 November, 1995.

2. Services: Expansion of the Coverage of Uruguay Round Commitments

   Australia will add a number of items to its GATS Schedule, with a view to deepening the Round outcome on services. These will include activities in the areas of construction services; environmental protection services; value-added telecommunications services; leasing; and arbitration and conciliation services. In these sectors, there will be no market access or national treatment limitations other than the horizontal restrictions (such as foreign investment screening and limits on temporary entry of personnel) which apply to all services.Date of Measure: Announced on 19 November, 1995.

3. Opening of Telecommunications Market

   Australia will introduce full and open competition to the telecommunications sector from the date below. There will be no restrictions on the number of providers or installers of network infrastructure and no industry-specific limits on foreign investment in news carriers.
   Date of Measure: To apply from 1 July, 1997.

4. Streamlined Procedures for the Temporary Entry of Business Personnel

   Australia will introduce new procedures to allow employers of good standing to bring in key business personnel quickly and smoothly. These arrangements will also simplify procedures for obtaining new visas and extensions of stay. The new arrangements will comprise three key elements: procedural simplicity, fast-track processing (for both short-term entry and longer-term entry) and a monitoring system to ensure that employers abide by their obligations.
   Date of Measure: To apply from mid-1996.

5. Improvements to Competition Policy

   Australian Governments are extending and deepening the scope of competition rules. Key aspects include the extension of the Trade Practices Act to the unincorporated sector and to State government business activities; an access regime to allow third parties access to infrastructure services; the elimination of competitive advantages to significant government businesses as a result of public sector ownership; and the separation of regulatory and business functions of public monopolies.
   Date of Measure: Broad agreement reached by Australian Commonwealth, State and Territory Governments in April 1995. Implementation varies with specific measures.

6. Privatisation Initiatives

   The Australian Government has recently sold its remaining equity in QANTAS Airways, is proposing to sell the remaining equity in the Commonwealth Bank and intends to sell long-term leases over the airports currently controlled by the Federal Airports Corporation. Date of Measure: Implementation varies with each case.

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Osaka "Action Agenda"
Brunei Darussalam's Initial Actions

Tariffs

1. Brunei Darussalam reduced tariffs on 688 items, of which 20 will be at 0 %, on 1 April 1995. This brings the total number of items at 0 % tariff to 4494 or 69 percent of tariff lines. Nearly four-fifths of our tariffs are now in the 0-5 % rang. Under the WTO, Brunei Darussalam has bound more than 6,000 industrial and agricultural goods, or 98 % of its total tariff lines.
2. Brunei Darussalam will reduce its tariff bindings undertaken in the UR from 20 % to 10 % for 4329 items, or approximately 66 % of total tariff lines, with effect from 1 January 1996. Brunei Darussalam will then amend its UR tariff schedules and notify the WTO as part of its efforts to broaden and deepen its UR commitments.

Intellectual Property Rights

3. With a view to implementing the TRIPs Agreement, Brunei Darussalam is amending her Trade Marks Act, drafting a Copyright legislation and reviewing her current Patent System which is a re-registration system.
4. Steps are being taken to study what other legislation need to be passed in order to give effect to the TRIPs Agreement by 31 December 1998.

Customs Valuation

5. Brunei Darussalam will accelerate its implementation of the WTO Customs Valuation Agreement, with a view to adopting it no later than 31 December 1998.

Deregulation

6. The Government of Brunei Darussalam is undertaking and will continue to undertake steps to eliminate or reduce the negative impact of any domestic regulations which impede free and open trade and investment. The current five-year National Development Plan aims to diversify the economy through broadening the industrial and commercial base, including undertaking liberalisation and deregulation measures. A number of public services in the telecommunications and transportation sectors have recently been privatised and other services may also be transferred to licensed private operators.

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CANADA: INITIAL ACTIONS

MEASURE	DATE	OUTLINE OF MEASURE
1. Tariff Reductions	6/13/95	Exceeding Uruguay Round Commitments through the reduction of 1500 tariff lines.
2. Tariff Reductions	3/25/95	3016 trade liberalization reductions to existing GPT rates and the extension of GPT treatment to 219 tariff lines not previously covered.
3. Tariff Reductions	1995	Canada is considering extending free rates of duty to LDDCs across most of the Canadian tariff schedule, in recognition of the importance of market access for the economic advancement of the LDDCs.
4. Foreign Investment Thresholds	10/94	Extension to all WTO members the benefit of preferential treatment under the Investment Canada Act previously reserved for American and Mexican investors under NAFTA.
5. Financial Services Liberalization	1995	Elimination of the few remaining significant foreign ownership restrictions facing financial service suppliers from WTO members under GATS.
6. Regulatory Review Strategy	1995	Reduction in the regulatory burden and the costs of compliance for domestic and foreign producers consistent with the principles of sustainable development. 150 federal regulations have been revoked to date, with another 100 scheduled for cancellation by the end of 1996.
7. Other Deregulation Initiatives	1995	A new International Air Policy allowing foreign countries to apply for certain flights in Canada. The Telecommunications Act providing for enhanced efficiency and competitiveness at the international level. The elimination of the $560.6 million annual grain transportation subsidy effective August 1, 1995.

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CHILE:INITIAL ACTIONS

MEASURE	DATE	OUTLINE OF MEASURE
1. Advanced implementation of tariff commitments across the board	1996
2. Improvement of tariff bindings	already implemented	All products(agricultural and industrial)bound at the ceiling rate of 25%;except for wheat,sugar,vegetable oils and dairy which are bound at 31.5%. The applied rate is 11% accross the board.
3. Elimination of quantitative restrictions in accordance with article XI of GATT	already implemented	Unless used in Free Trade Arrangements to liberalize markets(a combination of tariffs which decrease over time and quotas which expand over time)
4. Elimination of grey area measures,in full compliance with article 11 of the Agreement on Safeguards	already implemented
5. Accelerated implementation of UR commitments in the field of Services	already implemented
6. Elimination of trade distortive support measures	1996	Chile only employs permitted agriculture measures of support(green type)in full compliance with the Agreement on Agriculture
7. Accelerated implementation of the Agreement on Textiles and Clothing of the Uruguay Round	already implemented
8. Deregulation	Currently being implemented	Telecommunications,ports,sanitation and energy sectors as well as further deregulation of financial services through the modernization of the Bank Law,exchange rate controls and expansion of activities of other financial institutions
9. MFN and national treatment in investment	already implemented	With the exception of the fisheries sectors,the exploration and exploitation of hydrocarbons and uranium,domestic credit,publishing,radio and television,frontier land,and domestic maritime transport

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DOWN PAYMENT OF THE PEOPLE'S REPUBLIC OF CHINA AT THE OSAKA APEC ECONOMIC LEADERS INFORMAL MEETING

I.Measures to be taken in 1996&127

1. In 1996, China will slash substantially the tariff on over 4,000 tariff lines. The reduction of the simple average tariff will be no less than 30 percent.
2. In 1996,China will also eliminate the quota, licensing and other import control measures on about 170 tariff lines, accounting for over 30 percent of the commodities now subject to import quota and licensing requirement.
3. In 1996, the Chinese government will designate Shanghai and other cities as pilot bases to set up sino-foreign joint ventures engaged in foreign trade.
4. In 1996, the setting up of sino-foreign joint venture retail businesses on a trial basis will be extended.
5. In 1996, foreign exchanges transactions of foreign-invested enterprises will be incorporated in the banking system of foreign exchange procurement and sale.

II. Measures taken since Bogor Meeting

1. Since the Bogor Meeting, China has reduced the regulatory tariff from 150 percent to 80 percent on imported tobacco and wine, from 100 percent to 50 percent on video cassette and from 180 percent to 100 percent on vehicle.
2. Beginning on June 30, 1995, the quota, licensing and other non-tariff measures were removed from 367 tariff lines.
3. In addition to the 13 coastal cities already open to foreign banks, the Chinese government opened 10 other cities including Beijing, Shenyang and Wuhan for foreign banks to establish operational organisations. In addition to Shanghai, Guangzhou became another pilot city open to foreign insurance providers.
4. China adjusted the Statutory List of Import Commodities Subject to Inspection Enforced by Commodity Inspection Authorities and delisted 615 commodities. As a result of the adjustment, the number of import commodities subject to inspection is 816, 39.3 percent fewer than before.
5. Chinese government promulgated in 1995 Regulations of PRC concerning Customs Protection of Intellectual Property Rights, establishing the border measures for protection of intellectual property.

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Hong Kong's Initial Actions

1. Broaden Uruguay Round (UR) Commitments

2. Accelerate Implementation of UR Commitments

(a) Tariff Bindings

(b) Textiles and Clothing

3. Deregulate Banking Services

4. Abolish Monopoly on Supply of Local Telephone Service

5. Accelerate Conformity with Guidelines on Trade in International Value-Added Network Services (IVANS)

6. Accelerate Implementation of UR Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement

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INDONESIA:INITIAL ACTIONS

1.

2.

Schedule of Tariff Reductions,1995-2003

Current Tariffs	1995	1996	1997	1998	1999	2000	2001	2002	2003
5% 10% 15% 20%	5% 5% 10% 15%	- - - -	- - - -	- - - -	- - - -	max.5% max.5% max.5% max.5%	- - - -	- - - -	max.5% max.5% max.5% max.5%
25% 30% 35% 40%	20% 25% 30% 30%	- - - -	- - - -	max.20% max.20% max.20% max.20%	- - - -	- - - -	- - - -	- - - -	max.10% max.10% max.10% max.10%

3.

4.

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JAPAN'S INITIAL ACTIONS

1. TARIFF REDUCTION

(a) Japan will accelerate its Uruguay Round tariff reduction commitment on 697 items, including textiles, chemicals, steel and non-ferrous metals by approximately two years on an applied rate basis with tariff rates originally scheduled to be applied in January 1998 applied in April 1996. Imports which are close to US$10 billion primarily sourced from the APEC region will be favorably affected by these tariff reductions.

(b) Preferential tariffs on 55 agricultural and fishery products were reduced on January 1995 as for the fishery products and on April 1995 as for the agricultural products.

2. DEREGULATION

(a) 50 deregulatory measures have been newly established to improve foreign business access, including relaxation of the criteria in issuing multiple visa for temporary business visitors from the APEC region, simplification of product origin determination procedures, review of regulations on production and sale of vitamins, improvement of facilities for animal quarantine, additional recognition of the relevant agencies of APEC economies as JIS accredited inspection bodies and simplification of automobile inspection procedures.

(b) The decision was made in April 1995 to complete within three years the five-year Deregulation Action Program of March 1995, listing 1091 items including many requested by APEC economies, which is already making steady progress. Major items include improvement of foreign lawyers' ability to represent parties in international arbitration, abolition of the guideline on customs clearance sites for imported goods arriving at Narita Airport and deregulation of small and medium-scale entry into the power generation market and of the oil product import regime.

(c) The Program will be reviewed and revised by March 1996 taking into account the requests from interested APEC economies and other foreign parties and the result of Administrative Reform Committee's deliberations.

3. IMPORT PROMOTION

(a) An improved and expanded version of the System of Tax Incentives for Manufactured Imports was put into effect in April 1995, doubling the maximum tax refund level.

(b) Based upon revision of relevant legislation, local tax reductions for importers in designated import promotion areas, as well as other related incentives, were introduced as of November 1995.

4. TRADE AND INVESTMENT FACILITATION

(a) Legislation has been revised to expand a comprehensive SME re-structuring assistance program including overseas investment and providing favorable finance and tax measures, effective April 1995.

(b) Voluntary measures on Japanese government procurement of products will be further expanded to cover some services, effective January 1996.

5. COMPLETE IMPLEMENTATION OF URUGUAY ROUND OUTCOMES

Japan has implemented or will implement all UR outcomes by the agreed dates, with a major portion of TRIPs Agreement implemented before the agreed date.

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Initial Actions (The Republic of Korea)

1. Investment Liberalization

2. Tariff Reduction

3. Deregulation

4. Strengthening IPR protection

5. Government Procurement

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INDIVIDUAL INITIAL ACTIONS

Name of member economy: MALAYSIA

1.

2.

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MEXICO
Individual Initial Actions

1.

2.

3.

4.

5.

6.

7.

8.

9.

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New Zealand List of Individual Initial Actions.
(Osaka APEC Liberalisation Downpayment)

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INDIVIDUAL INITIALACTIONS
Papua New Guinea

1. Tariff Measures
i) Date of Measure	-	7 March 1995
ii) Outline of Measure	-	Maintain General Import Levy at 11%, reduction of duties on products to basic 11% maintaining standard industry assistance rate of 40%, maintaining 55% revenue rate and moving the standard rates of 11%, 40%, 55% downwards as circumstances permit.
2. Non-Tariff Measures
i) Date of Measure	-	7 March 1995
ii) Outline of Measure	-	Removal of all existing trade bans/licences and quotas. Implementation Study on Tariff Reform focusing on broadening of the tax basc.
3. Measures on Services
i) Date of Measure	-	1995
ii) Outline of Measure	-	Development of Telecommunication Infrastructure, Privatization of Energy Sector, Institutional Reforms Transportation Sector.
4. Measures on Investment
i) Date of Measures	-	7 March 1995
ii) Outline of Measure	-	Deregulation of Investment Regimes
5. Other Measures
i) Date of Measure	-	7 March 1995
ii) Outline of Measure	-	Introducing - effective National Competition Policy to increase transparencies, assessing possibilities for introduction of Intellectual Property Rights, Privatization of State Own Corporation.
6. Measures to GATT/WTO
i) Date of Measure	-	31 May 1995
ii) Outline of Measures	-	Membership to GATT on 16 December 1994, Application for membership to WTO. Schedules of commitment on Tariff Levels on Agriculture and Industrial products along with the Services scheduled were submitted to WTO and have since been verified.

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PHILIPPINE 'DOWNPAYMENTS'

MAJOR LIBERALIZATION AND DEREGULATION/PRIVATIZATION MEASURES

MEASURES	LAW	OUTLINE MEASURE
TARIFF	E.O.470	Import Liberalization Program(Gradual reduction of tariff)
	E.O.189	Tariff reduction on capital equipment
	E.O.204	Tariff reduction on textile, textile articles and chemical inputs
	E.O.264	Tariff restructuring program-phase down of duty rates starting July 1994 to 3% in raw materials and 10% in finished products by 2003 towards a uniform 5% by 2004
LIBERALIZATION/ DEREGULATION/ PRIVATIZATION	VARIOUS	Various foreign investment measures opening certain sectors to as much as 100% foreign ownership, additional incentives and investment guarantees, longer term property ownership and leases
	VARIOUS	Various laws and administrative measures allowing Build-Operate-Transfer(BOT) & Build-Own-Operate(BOO)arrangements in infrastructure projects
	VARIOUS	Liberalization measures in banking, telecommunications, mining and domestic shipping
	VARIOUS	Privatization of government ownership in banks, airlines, pulp and paper, copper, mining, steel and fertilizer sectors
	MOTOR VEHICLE DEVELOPMENT PROGRAM	Opening up of the car manufacturing sector to more participants rather than restricted numbers in the past.

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SINGAPORE'S INITIAL ACTIONS PACKAGE

1	Name of Measure: Date: Outline:	UR Tariff Binding Commitments 1 Jan 96 Implement UR commitment to bind 4038 out of 5872 tariff lines (about 70%) at rates of 10% and below, 4 - 9 years ahead of schedule.
2	Name of Measure: Outline:	Reduction of Tariff Bound Rates Reduce tariff bound rates for 2480 tariff lines bound under UR from 10% to 6.5%.
3	Name of Measure: Outline:	Extension of Tariff Binding Coverage Bind additional 291 tariff lines at maximum rate of 6.5%, thus extending UR tariff binding coverage from 70% to 75% of all tariff lines.
4	Name of Measure: Date: Outline:	Agreement on Trade-Related Investment Measures (TRIMS) 1 Jan 96 Implement TRIMS 4 years ahead of schedule.
5	Name of Measure: Date: Outline:	Customs Valuation Agreement 1 Jan 96 Implement the Agreement 3 years ahead of schedule.
6	Name of Measure: Date: Outline:	Agreement on Trade-Related Intellectual Property (TRIPS) 1 Jan 99 Implement TRIPS 1 year ahead of schedule.
7	Name of Measure: Date: Outline:	Agreement on Subsidies and Countervailing Measures 1 Jan 2000 Implement the Agreements 3 years ahead of schedule.
8	Name of Measure: Date:	Accession to WTO Government Procurement Agreement 1996
9	Name of Measure: Date: Outline:	Customs Procedures - Transparency Nov 95 Make information on Customs procedures etc widely available through the Internet
10	Name of Measure: Date: Outline:	Standards and Conformance Jan 96 Implement an action plan to align our standards with international standards. Specify in Standards publications the degree of equivalence of standards with international standards.
11	Name of Measure: Date: Outline:	Deregulation of Financial Sector Jun 95 Increase offshore banks' Singapore dollar lending limit from SS100 million to SS120 million
12	Name of Measure: Date: Outline:	Deregulation of Central Provident Fund (CPF) 1 Jan 95 Approved CPF unit trusts and fund management accounts can invest in foreign stocks/bonds traded on the Singapore Stock Exchange, up to 20% of fund value. CPF fund management accounts are also allowed to invest in selected regional markets.
13	Name of Measure: Date: Outline:	Further Deregulation of CPF 1 Jan 97 CPF unit trusts can purchase stocks on regional exchanges of up to 40% of a fund's value.
14	Name of Measure: Date: Outline:	Further Deregulation of CPF 1 Jan 99 Both CPF unit trusts and fund management accounts can invest in capital markets in Germany, Japan and the US. The ceiling on these and other and other foreign investments will be increased to 50% of the fund's value.
15	Name of Measure: Date: Outline:	Deregulation in Telecommunications Sector 1 Apr 97 Allow a second Public Cellular Mobile Telephone Services (PCMTS) operator and 3 more Public Radio Paging Service (PRPS) operators to start commercial operations.
16	Name of Measure: Date: Outline:	Deregulation of Electricity and Gas Sector 1996 Corporatising the electricity and gas undertaking of the Singapore Public Utilities Board, with a plan to introduce competition within this sector.

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Down Payment
Chinese Taipei

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THAILAND Initial Actions

Measures	Expected Date	Outline of Measures
Tariffs
1 Advanced implementation of tariff reductions agreed in the UR commitments	01 Jan 1995	Over 25% of tariff items in the UR Final Schedule of tariff concessions will be reduced in advance of UR commitments. Specific description will be submitted later.
2 Expansion of tariff quotas beyond UR commitments	01 Jan 1995	Thailand aims to increase the quantity of imported soybean, soybean cake, and skimmed powdered milk by approximately 3% per annum above the quantity committed under the WTO agreement.
Services
3 Improvement of specific commitments in financial services in GATS	27 Jul 1995	Thailand submitted to WTO a revised schedule of specific commitments in financial services, which is a major improvement over the previous offer and is in accordance with the liberalization measures in the Financial System Development Plan.
4 Advancing the implementation dates of commitments in financial services in GATS	14 Sep 1995	Some foreign banks with Bangkok International Banking Facility (BIBF) licenses will be granted full branch license in 1996 in lieu of 1997 as committed to the WTO.
Other WTO Agreements
5 Bringing forward the implementation of customs valuation.	before 2000	The WTO Customs Valuation Agreement will be implemented earlier than agreed under the Uruguay Round.
6 Bringing forward the implementation of TRIPS	1995	The government has just announced the immediate effectiveness of the new Copyright legislation for the protection of performers' right in accordance with the standards established under TRIPS agreement.
7 Advancing the implementation of TRIPS	1996	The government is currently in the final stages of approving a bill to set-up an Intellectual Property and International Trade Court.
Other Liberalization of Facilitation
8 Improvement of national treatment and market access	1996	The government is presently revising the Alien Business Law (Announcement of the National Executive Council No. 281) to further liberalise trade and industry.
9 Investment deregulation	07 Sep 1995	On September 7, 1995, the Board of Investment decided to relax the criteria for joint venture projects applying for investment promotion by waiving the Thai majority shareholding requirement for manufacturing projects located in zone 3 which sell mainly to the domestic market. This relaxation will allow majority foreign-owned or wholly foreign-owned projects in zone 3 to sell freely to the domestic market.
10 Industrial liberalization	29 May 1995	Liberalize the setting-up and expansion of factories producing all types of petrochemical products, but excludes new Upstream (Aromatics) factories which do not use Pyrolysis Gasoline supplied from Upstream (Olefins) factories.
	20 Jun 1995	Liberalize the setting-up and expansion of factories producing hot and cold strip mills (excluding plate mills) and coated sheets.
11 Privatization of public utilities	1998	Liberalization will be achieved by providing the opportunity for the private sector to participate in the provision of public utility. In addition, the eventual privatization of state enterprises, such as telephone and electricity, will be achieved.

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Osaka Individual Initial Actions

UNITED STATES OF AMERICA

Uruguay Round Implementation

1. Completed Implementation of Uruguay Round/WTO Agreements 1/1/95
   • Antidumping
   • Customs Valuation
   • Import Licensing Procedures
   • Preshipment Inspection
   • Subsidies and Countervailing Measures
   • Safeguards
   • Sanitary and Phytosanitary Measures
   • Rules of Origin
   • Technical Barriers to Trade
   • Trade Related Investment Measures
     (TRIMs)
   
   To be Fully Implemented 1/1/96
   • Trade Related Intellectual Property Rights (TRIPs)
   • Government Procurement

Other Liberalization or Facilitation Measures (1995)

2. Customs Modernization Act Implementation: The U.S. Customs Service Implemented key steps to streamline and automate its commercial operations, including the completion of the first phase of the Customs Automated Export System, a single electronic gateway for information on export administration, and drafting of revised regulations to simplify procedures and to clarify criteria for review of Customs decisions.
3. Federal Procurement Streamlining: U.S. Federal procurement procedures were revised extensively this year to eliminate burdensome procedures for domestic and foreign bidders. Features include: (1) greater administrative latitude to procure supplies and services in the commercial marketplace; (2) decrease in the use of military specifications that required manufacturers to maintain separate assembly lines for their U.S. government contracts; (3) elimination of cost and pricing data certifications that required separate accounting systems for U.S. government contracts; and (4) increased use of electronic commerce technologies in the contracting process and expanded access to these systems for bidders. The Department of Transportation eliminated Buy America requirements for Federally-funded projects below $ 100, 000. In addition, the Department of Energy is advancing efforts to eliminate 50 percent of the Department of Energy Acquisition Regulations (DEAR), in order to streamline procurement operations.
4. Export Administration Regulations: The Department of Commerce began in early 1995 to completely rework the pre-Cold War Export Administration regulations related to dual-use goods and technologies. Initial steps taken this year will facilitate exports, particularly by small and medium-sized enterprises. A major liberalization of export licensing restrictions also was announced which will liberalize an estimated $ 10 billion in computer technology exports.
5. Medical Device Approval Regulations : The Food and Drug Administration (FDA) revised regulations governing the approval of medical devices, including reforms which: (1) provide for exemptions on 125 additional medical device categories from pre-market notification requirements ; (2) create a pilot program for the review of medical devices by an accredited third-party scientific organization, substituting for the traditional review process undertaken by the FDA; and (3) expand the ability of firms to export medical devices that have not yet been approved by FDA for sale in the U.S. but which have been approved for use by foreign authorities. All these actions will be effective by the end of 1995.
6. Paperwork Reduction Act: The Paperwork Reduction Act adopted this year significantly reduces transaction costs for domestic and foreign suppliers through reduction in official reporting and recordkeeping by businesses operating in the U.S. market.

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   Japan's Initial Actions Reference Materials

1. TARIFF REDUCTION

1(a) Acceleration of UR tariff reduction commitment

Japan will accelerate its Uruguay Round tariff reduction commitment on the following 697 items by approximately two years on an applied rate basis with tariff rates originally scheduled to be applied in January 1998 applied in April 1996.

(1995 JAPANESE STATISTICAL CODE BASED ON THE HS)

        252020090      282749000       284290000       290722000



        252329000      283110000       284390000       290723000



        270120000      283230000       284700000       290730000



        270740000      283311000       284910000       290890000



        271000196      283319000       285000000       290911000



        271000199      283325000       290121000       290942000



        271121000      283326000       290122000       290943010



        271129000      283410000       290123000       290943090



        271210000      283429200       290211000       291010000



        280300000      283429300       290220000       291020000



        280410000      283510000       290230000       291030000



        280430000      283521000       290270000       291512000



        280480000      283523000       290311000       291521000



        280490000      283526000       290321000       291523000



        280519000      283610000       290359021       291524000



        280610000      283620100       290359029       291532000



        280700000      283620200       290420000       291535000



        280800000      283630000       290512000       291570010



        281122000      283640000       290513000       291611000



        281290000      283650000       290514000       291612000



        281620000      283919000       290516200       291615000



        281700000      283990000       290517000       291711000



        282410000      284120000       290614000       291713000



        282540000      284160010       290619010       291714000



        282550000      284160090       290619020       291732000



        282580010      284170000       290711000       291733000



        282736000      284180000       290715000       291736000



        282739020      284210000       290721000       291737000















        292112000      360490000       390430090       391910020



        292122010      360500200       390440010       391910030



        292122090      370210010       390440090       391910090



        292141010      370210090       390490010       391990010



        292211000      370710000       390490090       391990020



        292212000      370790000       390511000       391990030



        292213000      380120000       390520000       391990040



        292222000      380290000       390710000       391990050



        292241000      380590000       390730010       391990060



        292511000      380630000       390730090       391990070



        292519900      381300000       390750010       391990090



        292610000      390110090       390760010       392010000



        292700000      390130010       390760090       392020000



        293219000      390130090       390791010       392030000



        293390020      390190010       390791090       392042000



        294200000      390190090       391110010       392051000



        320610020      390220010       391110090       392059000



        320620000      390220090       391290010       392061000



        320643000      390230010       391290090       392062000



        320740000      390230090       391310000       392072000



        320990000      390311010       391510000       392091000



        321290010      390311090       391710010       392093000



        321519000      390319090       391722000       392099020



        330510000      390320010       391723000       392099090



        330520000      390320090       391729000       392111000



        330741000      390330010       391731000       392113000



        330749000      390330090       391732010       392114000



        330790010      390390010       391732020       392119010



        340119010      390390090       391732090       392119020



        340119020      390421010       391739010       392119090



        340120020      390421090       391739091       392210000



        340420000      390422010       391739099       392220000



        340600000      390422090       391740000       392290000



        360410000      390430010       391910010       392310000























        392321000      480421000       481930000       521211020



        392329000      480429000       481940000       521211030



        392330000      480451020       481950000       540241021



        392340000      480452020       482030000       540241022



        392390000      480459020       482040000       560121000



        392410000      480521000       482050000       560122000



        392490010      480522010       482090000       560129000



        392490090      480522090       482110000       560490021



        392510000      480523000       482190000       580790000



        392520000      480529011       482210000       581100023



        392530000      480529019       482290000       610311010



        392590000      480529090       482311000       610312010



        392610000      480540010       482319000       610319090



        392620000      480550010       482351000       610321020



        392640000      480560010       482359000       610322020



        400300000      480560090       482360000       610323020



        400510000      480570000       520611010       610341010



        400520090      480620000       520622010       610341020



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        480411020      481850000       521131010       610422020



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        480419020      481920000       521151019       610423020















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        610610020      611511000       700521020       721631000



        610620020      611512000       700521090       721632000



        610690020      611519000       700529010       721633010



        610791011      611790010       700719000       721633090



        610792011      630210010       701690090       721640000



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        611212020      680530000       720914010       730120000



        611219010      681110000       720931010       730300000



        611219020      681230000       720932010       730410020



















        730420040      731822000       790710000       930510020



        730511020      731823000       790790000       930521000



        730512020      731824000       800120000       930529000



        730519020      731829000       800300000       930590010



        730531010      740729010       800400000       930590021



        730531020      740729090       810430000       930590029



        730539010      740931000       810490000       940140010



        730539020      740939000       810710000       940421000



        730590010      740940000       811000010       940429000



        730590020      740990000       811000090       940430000



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        730610020      741129010       821194000       940490090



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        730630011      750511000       830140000       950100000



        730630019      760429000       830150000       950210000



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        731812000      780199221       854430090       950370010



        731813000      780199222       854511010       950370020



        731814000      780420000       854511090       950380011



        731815010      780500000       854519000       950380012



        731815090      780600000       854520000       950380013



        731816000      790120021       871000000       950380019



        731819000      790310000       930100000       950380020



        731821000      790600000       930510010       950390011



















                              950390012      961519000



                              950390019      961590010



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                              950490020      961590060



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                              950661000



                              950669000



                              950710010



                              950710090



                              950720000



                              950730000



                              950790000



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                              960610000



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                              960820000



                              960850000



                              961320090

The proposed tariff reductions are subject to the necessary legislative procedures.

1(b) Reduction of preferential tariffs

The 55 agricultural and fishery products whose preferential tariffs were reduced are as follows.

(1995 JAPANESE STATISTICAL CODE BASED ON THE HS)

030791420            160520029



030791430            160530020



030791440            160540012



030799131            190510000



030799132            190540000



030799231            190590100



030799232            200290100



050800100            200310100



071230091            200530100



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071290020            200559100



071290040            200570010



071290090            200590190



080211200            200590291



080212200            200600010



080430090            200819191



080440010            200819193



080720000            200819227



090230010            200840291



152190099            200870291



160220091            200891000



160220099            200899224



160231290            200980210



160239290            200980229



160290290            200990210



160420013            200990220



160510010            210220100



160520021

2. DEREGULATION

As the host nation for the APEC Economic Leaders' Meeting in Osaka, Japan considers "initial actions" as being of the utmost importance. Japan's efforts in this regard have included implementing Uruguay Round outcomes ahead of schedule and launching deregulation measures.

Within this context, the Japanese Government has promoted deregulation to make the national economy internationally open and making it a free economy based on the market mechanism and the emphasis on the individual self-responsibility. From standpoints including expanding consumers' freedom of choice, reducing price differentials in Japan and abroad, expanding domestic demand, promoting imports, expanding business opportunities, reducing the burdens placed upon Japanese citizens, and simplifying administrative works, the Japanese Cabinet approved, in March 1995, a Deregulation Action Program (hereinafter referred to as "the Program") designating 1,091 deregulation measures in 11 different areas. Ever since, the Government has been diligently working to actively implement the Program. Moreover, to further accelerate the progress in deregulation, the Japanese Government decided, in the Economic Measures to Cope with the Yen Appreciation adopted in April 1995, to speed up the implementation period for the Program to three years from the originally scheduled five years.

The Program includes numerous deregulation measures over a wide range of fields concerning the improvement of market access and the promotion of imports, etc. from the standpoint of realizing an internationally open economy. Especially, efforts are being made regarding standards, certifications, imports, and related matters in order to improve market access and promote imports. Such efforts include the international harmonization of specifications and standards, and the introduction of systems for the mutual recognition of certification. While moving forward with the review of standards and certification systems, the Program also promotes measures to simplify and expedite import procedures. The Program encompasses 240 deregulation measures concerning standards, certifications, and imports, and it is expected to generate substantial results in view of improving market access and promoting imports.

The key deregulation measures that have already been implemented under the Program are presented in Appendix I. These measures include the following.

• Operation hours of customs clearance services were extended at Nagoya and Fukuoka airports in April 1995.
• Since July 1, 1995, the range of medical devices(that do not conform with the Japanese Industrial Standard) which do not require manufacturing or import approvals has been expanded.
• Since July 1995, in principle, the valid period for licenses to engage in the import of medical devices for veterinary use has been extended from three years to five years.
• Since July 1995, 117 electric appliances and materials that had been formerly categorized as Category A (government certification) have been reclassified as Category B (self-declaration) considering the technological progress and the schemes which are internationally prevalent on electrical appliances safety.
• Since July 14, 1995, automobiles with equipment that detects engine misfires and sounds an alarm or with equipment that detects engine misfires and then shuts off the supply of fuel have no longer been required to be equipped with heat damage warning devices.

The key deregulation measures under the Program that will be promoted (including items that are continuously being promoted) are presented in Appendix II. These measures include the following.

• Food sanitation, plant and animal quarantine procedures will be computerized from fiscal year 1995 onwards and these systems will be electronically connected with the NACCS(a computerized customs clearance system) from fiscal year 1996 onwards.
• In October 1995, the Study Commission on Representation in International Arbitration established by the Ministry of Justice and the Nichibenren drew the conclusion to the effect that foreign lawyers should be allowed to represent parties in international arbitration. The bill in line with that conclusion is planned to be introduced to the next ordinary session of the Diet.
• The guideline on customs clearance sites for imported goods arriving at Narita International Airport will be abolished when services are initiated at the Number 4 cargo building.
• In fiscal year 1997, certain herbal products will be re-classified from medicines to foodstuffs. - By the end of fiscal year 1996 as a target date, procedures will be developed to estimate the infection of pests throughout shipping vessels' cargo holds for wheat, beans, and other grains.
• Efforts will be made to ensure the stable and efficient supply of energy. From December 1995, licensing requirements will be eliminated for small and medium-scale wholesale electric power businesses, and other measures taken to expand new entry into the electric power generation market. Moreover, from April 1996, anyone will become free to engage in the import of gasoline and other petroleum products as long as the stockpiling and quality-control obligations are fulfilled.
• Within fiscal year 1995, the domestic standards for the structure, etc. of aluminum car ferries will be clarified and brought into conformity with IMO standards.

Moreover, for further improvement of market access and promotion of imports, etc., 50 deregulation measures are being announced on the occasion of the Osaka APEC summit meeting. These measures, which primarily concern fields related to standards, certification, imports, etc., are presented in Appendix III. These measures include the following.

• Based on a review of the standards for the issuance of multiple-entry visas, etc. throughout the APEC region, the standards for the issuance of multiple-entry visas (with a validity of one year or three years, and with a period of stay of 15 days or 90 days) will be relaxed for individuals from the APEC region coming to Japan for business purposes. This measure will be implemented from January 1, 1996.
• The procedures to identify the country of origin with regard to applying the preferential tariffs will be simplified by partly abolishing submission of the certificate of origin(Form A).
• Following deliberations by experts on the issue of side-effects from excessive intake, efforts will be made to re-classify vitamins as food products rather than medicines for both manufacture and distribution. Measures for vitamin C will be devised by August 1996 as a target date, and other vitamins will also be successively recognized as food products whenever possible in fiscal year 1996.
• The import procedures for animals will be expedited by expanding and improving holding facilities for animal quarantine.
• Efforts will be made to designate more foreign special inspection bodies to simplify inspection procedures of certification for the Japanese Industrial Standard (JIS) mark in the area of construction-related materials. The standards office of the Thailand Ministry of Industry was so designated in February 1995, and in response to an application from Malaysia a similar arrangement for Malaysia will be made within fiscal year 1995.
• Since October 1995, replacement operations of shock absorbers, struts, power steering, and trailer hitches have no longer been within the definition of disassembling repair.

Japan considers deregulation as a policy issue of the utmost importance, and the Japanese Government will continue to promote deregulation in the future. The entire Program will be reviewed and revised by the end of March 1996. These revisions will take into consideration the report of the Administrative Reform Committee, which is a third-party organ established in December 1994, as well as domestic and international opinions and requests, including the comments from APEC members. This work may include more detailed specification of the Program measures, advancing the implementation schedule for these measures, as well as incorporating additional new measures into the Program.

Appendix I : Main Deregulation Action Program Measures that have already been implemented related to standards, certifications, imports, etc.

(1) Standards and certifications

• In October 1995, based on the conclusions reached in deliberations of the Central Pharmaceutical Affairs Council, among those ingredients newly incorporated into applied cosmetics, the use of the ingredients made from formaldehyde was permitted.
• Since April 1, 1995, a new application system using floppy disks has been introduced for application procedures of approval and licensing for pharmaceuticals, quasi-drugs, and cosmetics.
• Since July 1, 1995, the range of medical devices(that do not conform with the Japanese Industrial Standard) which do not require manufacturing or import approvals has been expanded.
• Since July 1, 1995, when the manufacturing processes for a medical device take place at multiple locations, under certain specified conditions it has no longer been necessary to gain approval for the individual items (formerly a prerequisite) in order to receive a manufacturing license.
• Since July 1, 1995, in principle, the valid period for medical device manufacturing and import licenses has been extended from three years to five years.
• In July 26, 1995, with respect to the side effect report of medical devices, the definition of the term "fuguai" (malfunction) was further clarified by presenting examples, etc.
• Since July 1, 1995 , the range of changes of medical devices which do not require partial change approval has been expanded.
• Since October 31, 1995, the standards for vending machines that cook foods have been relaxed, including approval of pre-cooking.
• Since October 1995, the certification requirement has been abolished for substances administered by injection and other antibiotics for veterinary use designated by the Minister of Agriculture, Forestry and Fisheries.
• Since July 1995, in principle, the valid period for licenses to engage in the import of medical devices for veterinary use has been extended from three years to five years.
• Since July 1995, 117 electric appliances and materials that had been formerly categorized as Category A (government certification) have been reclassified as Category B (self-declaration) considering the technological progress and the schemes which are internationally prevalent on electrical appliances safety.
• Since July 14, 1995, automobiles with equipment that detects engine misfires and sounds an alarm or with equipment that detects engine misfires and then shuts off the supply of fuel have no longer been required to be equipped with heat damage warning devices.

(2) Import procedures, etc.

• Operation hours of customs clearance services have been extended at Nagoya and Fukuoka airports since April 1995.
• Overtime preliminary entry is being received with immediate notification whether customs inspection is required or not, through the NACCS(a computerized customs clearance system), since April 1995.
• Bonds for blanket deferred payment of customs and excise duties can be effective nationwide by revising the Sea-NACCS in April 1995, the Air-NACCS in November 1995.
• Information service on entry of their own processed through the NACCS has been available for the importer or the consignee at their own cost since April 1995.
• The procedure to apply reduction of customs duties has been simplified since April 1995, in case of the reimportation of goods manufactured and/or processed abroad, whose materials were exported from Japan. - Tariff classification cases have been opened public at customs offices since July 1995.
• Since April 1995, the quantitative restriction of imports under the import quota system for starch, milk products, products of the field, and wheat and barley have been abolished.
• The registration under the Pre-certification System for Imported Foods etc. is being facilitated along with the dissemination of this system. (As of the end of October 1995, 61 food products had been registered).
• The number of registered foreign official inspection laboratories of which test results are accepted for food import clearance has been increased. (As of the end of October 1995, 2,513 laboratories in 49 different nations had been registered).

Appendix II : Main Deregulation Action Program Measures that will be promoted related to standards, certifications, imports, etc.

(1) Standards and certifications

• From March 1, 1996, the Maximum Residue Limits(MRL) for five additional pesticides in foods as part of the specifications and standards for foods, etc., will take effect. In setting MRL, international standards have been considered.
• From May 24, 1996, the food products of which manufacturing and processing have undergone comprehensive sanitation control manufacturing processes and which received the approval of the Minister of Health and Welfare will be exempted from food products manufacturing standards. - By March 1996, the labeling methods will be simplified for food products to be shipped to processing facilities.
• In fiscal year 1997, certain herbal products will be re-classified from medicines to foodstuffs.
• Based on the agreement reached at the ICH (International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use jointed with Japan, the United States and the European Union), efforts will be made to achieve greater international conformity in standards, testing, and evaluation, and to expand the acceptance of overseas data.
• Efforts will be made to promote the conclusion of an agreement for the mutual recognition of GMP standards (standards for manufacturing control and quality control) between Japan and the United States for medical products.
• Based on the result of consultations, the mutual recognition of GMP standards (standards for manufacturing control and quality control) between Japan and the European Union will be implemented. Under GMP I (standards for ensuring the quality of imported medicines and medical equipment) the applicable items will be exempt from all testing and inspections other than external inspections.
• By fiscal year 1996, through the expansion of the items listed in the pharmacopoeia Japonica, the range of medicines that does not require manufacturing and import approval will be expanded.
• By fiscal year 1996, national testing of (oral) antibiotics will be abolished.
• By March 1996, in case of in vitro diagnostic agents, changes in composition of ingredients will be no longer required supplemental applications, and in fiscal year 1996 consideration will be given to abolishing the approval requirement for other moderate changes.
• By March 1996, in vitro diagnostic agents with an effective period of less than six months will also be approved, provided that there is a rational reason.
• By March 1996, acceptance of accelerated stability test data for testing the stability of external diagnostic medicines will be changed.
• By March 1996, for example, the standards for the items deliberated by the Central Pharmaceutical Affairs Council will be further clarified, and items related to the approval procedures for in vitro diagnostic agents will also be clarified.
• By fiscal year 1997, considerations will be given to simplifying the labeling requirements for in vitro diagnostic agents, including the partial omission of certain items, and simplifications will be instituted based on these considerations.
• By March 1996, simplification of the specifications and testing methods for plastic containers for eye-drops will be exerted, including the standards relating to heavy metals and the adjustment methods for testing solutions.
• In fiscal year 1996, concerning the comprehensive licensing standard by category for cosmetics, consolidation of categories and expansion of ingredients will be reviewed.
• Considering the international trends in cosmetic product regulation in the European Union, etc., the cosmetics manufacturing or import licensing system and the labeling regulations under the existing ingredients regulation method in Japan will be reviewed, including an effort to move toward international harmonization.
• By March 1996, import procedures will be simplified for cosmetics parallel imports when it can be confirmed that these are identical to the products that are already being imported.
• By fiscal year 1997, the clinical testing of electronic sphygmomanometers and contact lenses will be reexamined.
• By fiscal year 1997, the standards for medical devices under Article 42 of the Pharmaceutical Affairs Law will be reexamined.
• By March 1996, efforts will be made to provide a more thorough notification that an opportunity has been created whereby the comments regarding approval of new medical devices given by the relevant subcommittees of the Central Pharmaceutical Affairs Council may be related directly by the chairman to applicants, and to take measures for the general notification of the contents of such comments, if any, that should be made available to the general public.
• By fiscal year 1997, considerations will be made and necessary measures devised regarding means to ensure product quality at the stage where imported in vitro instrument is installed, including the possible elimination of visual inspections by the importers.
• By fiscal year 1997, for the registration of the manufacturing and import of poisonous and deleterious substances, the declaration of the sales names of the manufacturing and import items will no longer be required on the application form.
• Within fiscal year 1995, seven items will be removed from the list of animal vaccines, etc. subject to import quotas, and the import volumes for the remaining items still subject to import quotas will be expanded.
• Within fiscal year 1995, the acceptance of data from the clinical trial results of veterinary drugs conducted overseas will be expanded.
• Within fiscal year 1995, the range of veterinary drugs that do not require approval for manufacturing or importing by the Minister of Agriculture, Forestry and Fisheries will be expanded.
• By November 1995 as a target date, the standards for structural glued laminated timber will be unified and performance evaluation standards will be revised toward international conformity.
• In fiscal year 1997, approximately 300 IEC standards, including those for electric wires and light bulbs, will be studied and adjusted for introduction as technical requirements of Electrical Appliances and Material Control Law.
• While promoting the acceptance of inspection data for certification of the JIS mark to foreign factories, efforts will be made to make greater use of ISO 9000 series private-sector certification results for quality control management systems to further simplify inspection procedures.
• From January 1996, four out of six specified Class A consumer products (government certification), including household pressure cookers and roller skates, etc. will be reclassified as specified Class B articles (self-certification).
• Within fiscal year 1995, international harmonization standards will be accepted for the installation of automobile lamps.
• Within fiscal year 1995, the type designation of 4-unit type headlamps will be eliminated in favor of the acceptance of international harmonization standards regarding the number of headlamps.
• Within fiscal year 1995, the domestic standards for the structure, etc. of aluminum car ferries will be clarified and brought into conformity with IMO standards.
• Within fiscal year 1995, the same mutual recognition system that is presently used for maritime radar will be adopted for the type certification of GMDSS-related equipment based on the Ships Safety Act and the Radio Law.

(2) Import inspections

• Extension of the working hours for the food import procedures will be considered in the light of the actual conditions of food imports, and be made, as appropriate.
• By the end of fiscal year 1996 as a target date, procedures will be developed to estimate the infection of pests throughout shipping vessels' cargo holds for wheat, beans, and other grains.
• From fiscal year 1995, Japan will actively contribute to the work at the relevant international organizations in developing the standards on pest risk assessment and other guidelines.

(3) Import procedures, etc.

• Food sanitation, plant and animal quarantine procedures are to be computerized from fiscal year 1995 onwards and these systems will be electronically connected with the NACCS(a computerized customs clearance system) from fiscal year 1996 onwards.
• Import permission will be immediately granted upon arrival for certain air cargoes in early fiscal year 1996 in view of further facilitation of customs clearance.
• Preliminary and formal entry based upon certain in-house documents are to be enabled in order to facilitate importation procedures in February 1996.
• Request for overtime custom clearance services will be automatically approved through the NACCS when the consignment is considered that further inspection or documentation deemed unnecessary at the time of preliminary entry in fiscal year 1996.
• The guideline on customs clearance sites for imported goods arriving at Narita International Airport will be abolished when services are initiated at the Number 4 cargo building.
• A data base on tariff classification cases will be accessible from January 1996.
• The term for the blanket approval of transportation in bond will be extended from the present three months to one year, from January 1996.
• Customs will provide detailed information with traders whether the volume of importation subject to preferential tariff treatment exceeds the ceiling or not, through intra-customs computer network within fiscal year 1995.

(4) Other deregulation measures

• In October 1995, the Study Commission on Representation in International Arbitration established by the Ministry of Justice and the Nichibenren drew the conclusion to the effect that foreign lawyers should be allowed to represent parties in international arbitration. The bill in line with that conclusion is planned to be introduced to the next ordinary session of the Diet.
• Efforts will be made to ensure the stable and efficient supply of energy. From December 1995, licensing requirements will be eliminated for small and medium-scale wholesale electric power businesses, and other measures taken to expand new entry into the electric power generation market. Moreover, from April 1996, anyone will become free to engage in the import of gasoline and other petroleum products as long as the stockpiling and quality-control obligations are fulfilled.

Appendix III : New deregulation measures for further improvement of market access and promotion of imports

(1) Standards, certifications, imports, etc.

• The procedures to identify the country of origin with regard to applying the preferential tariffs will be simplified by partly abolishing submission of certificate of origin(Form A).
• At Shimonoseki port, for the first time among Japanese sea ports, customs clearance services are regularly available on Saturdays and Sundays.
• A guide to customs valuation will be available to importers for the purpose of further facilitation of import procedures.
• To expedite and clarify the designation procedures for food additives, the Ministry of Health and Welfare will compile guidelines in March 1996 describing the testing methods and the scope of accompanying data required when domestic and foreign business persons make applications.
• Following deliberations by experts on such issues as side-effects from excessive intake, efforts will be made to review the classification rules between food products and medicines relating to vitamins for both manufacture and distribution. Measures for vitamin C will be devised by August 1996 as a target date, and other vitamins will also be successively recognized as food products whenever possible in fiscal year 1996. - By December 1995 as a target date, a directive will be clarified and thorough notification provided stating that the provision of quality control area will not be required as room for the manufacture and import of in vitro diagnostic agents.
• By December 1995 as a target date, the standards regarding the assignment of special managers for the manufacture or import will be relaxed so that individuals with a certain level of expertise who are responsible for general in vitro diagnostic agents may concurrently serve as managers responsible for the manufacture and import of biological products of in vitro diagnostic agents.
• By December 1995 as a target date, when offices that only handle samples of external diagnostic medicines are managed under the authority of managers posted at other places of business, the concurrent authority of the registered pharmacists at such other places of business will also be recognized for the offices that only handle samples of external diagnostic medicines.
• The import of oysters for raw consumption will be permitted after the sanitary control system of the exporting country has been confirmed by a note verbale, etc.
• Works will be implemented to review and set maximum residue limits for sulfamethazine and other veterinary drugs used for livestock and cultured fish and shellfish, beginning with those items for which sufficient data have been accumulated for safety evaluation.
• While promoting technical cooperation for managing the manufacture of medicines in Asian nations, and based on improved manufacturing management technology, efforts will be made toward the mutual recognition of GMP standards.
• For the approval and licensing of medical devices, a system will be developed for application and examination using floppy disks, and the new system will be introduced in fiscal year 1996.
• For registration under the Poisonous and Deleterious Substances Control Law, a system will be developed for application and examination using floppy disks, and the new system will be introduced in fiscal year 1996.
• The import procedures for animals will be expedited by expanding and improving holding facilities for animal quarantine.
• From fiscal year 1996, import procedures will be expedited by appropriately placing plant quarantine inspectors to provide inspection service for increased number of international flights at Narita International Airport.
• From fiscal year 1996, the import procedures of animal quarantine at Nagoya Airport will be expedited by appropriately placing animal quarantine inspectors to provide inspection service for the last international flight of the day.
• From fiscal year 1996, plant quarantine procedures will be expedited at local international airports by appropriately placing plant quarantine inspectors to cope with internationalization of the airports.
• In view of facilitating smooth procedure of animal quarantine, detailed information on Japan's animal quarantine system will be given to the relevant nations.
• In view of facilitating smooth procedure of plant quarantine, detailed information on Japan's plant quarantine system will be given to the relevant nations.
• Within fiscal year 1995, an information desk will be set up in the Ministry of Agriculture, Forestry and Fisheries for receiving opinions and requests to create or amend JAS standards.
• In March 1996, Codex Coordinating Committee for Asia will be held in Japan in order to facilitate establishing international standards for food products indigenous to Asia.
• With regard to the standard/certification of JAS, the utilization of the Foreign Testing Organizations(FTOs) will be expanded. In response to a request by a FTO in the United States, a product was additionally designated in August 1995.
• To facilitate international trade in seeds and seedlings, Japan will provide aid to contribute to the establishment and extension of plant variety protection systems in nations where such systems have not been fully established.
• Within 1995, the information desk will be set up in the Society for Techno-innovation of Agriculture, Forestry and Fisheries(STAFF) in order to give detailed information on the "Guidelines for Application of Recombinant DNA Organisms in Agriculture, Forestry, Fisheries, the Food Industry and Other Related Industries" (including distribution of guidelines translated in English to foreign companies).
• Within 1995, imported feed barley will be made possible to be supplied to farmers in the whole grain form, in addition to the supply in the current processed form(ground, cracked or flaked).
• From October 1995, pH test, etc. have been abolished in the national assay of vaccine for animal use, etc.
• From fiscal year 1996, to contribute to trade facilitation of Golden mangoes in the APEC region, Japan will give aid to establish the disinfestation technique of fruit fly using Vapor Heat Treatment on Golden mangoes.
• From fiscal year 1996, to promote production and supply of safe agricultural products, Japan will support through JICA(Japan International Cooperation Agency) project the establishment of the technique in the National Program for Monitoring Pesticide Residue in Agriculture and the Environment and Pesticide Formulation, considering the outcome of the technical cooperation so far.
• Within fiscal year 1995, in order to facilitate international trade of aquaculture products, information on improvement of safety and quality of them will be given to attendance at the SEAFDEC(Southeast Asia Fisheries Development Center)-FAO Meeting on the Use of Chemicals in Aquaculture.
• Based on changes in products and consumer purchasing trends, Japan will reconsider specified products and the labeling contents on the basis of the Household Goods Quality Labeling Law. To this end, a council will be opened and deliberations held on product safety and household goods quality labeling within fiscal year 1995. This will include consideration of expanding the range of approval of English language usage for the uniform labeling of the composition of fibers for textile products.
• To simplify the procedures for JIS marking factories, the requirements to submit the "Report on Manufacturing Conditions of Commodities Approved JIS marking" and the "Report on Processing Conditions of Processing Technique Approved JIS marking" were abolished.
• Efforts will be made to designate more foreign special inspection bodies to simplify inspection procedures of certification for the Japanese Industrial Standard (JIS) mark in the area of construction-related materials. The standards office of the Thailand Ministry of Industry was so designated in February 1995, and in response to an application from Malaysia a similar arrangement for Malaysia will be made within fiscal year 1995.
• The program of alignment of JIS with international standards(ISO and IEC) will be completed by the end of fiscal year 1997 as a target date. There are approximately 1,000 JISs, which need to be considered to align with international standards. These JISs include approximately 50 construction-related standards and 60 textile-related standards. In fiscal year 1995, a "Guide for Alignment of JIS with International Standards" was already prepared as a basis for this program; the necessary translation of international standards corresponding to these JISs will also be executed; and approximately 300 JISs are projected to be aligned as a result of the first year works.
• Within 1995, for the standards certification procedures for telecommunications equipment, the supporting materials attached to certifications of conformity with technical standards will be simplified.
• From fiscal year 1995, testing laboratories will be designated to promote the acceptance of foreign testing data for performance tests under the Building Standard Law.
• While considering the establishment of technical standards concerning the approval of the structure and the efficiency of equipment for mechanical parking systems based on the results of prior examinations, for mechanical parking systems manufactured overseas, after grasping the current production conditions and the desire to enter the Japanese market in each nation, a rational inspection system will be established giving proper consideration to the license evaluation in each nation and the opening of application offices.

(2) Transportation

• Within fiscal year 1995, among motor vehicle safety devices, the type approval system for headlamps and fog lamps will be refined.
• To contribute to the convenience of motor vehicle users by expanding the number of certified garages for motor vehicle repairs and maintenance, the minimum number of licensed mechanics that must be in the employ of such certified garages will be reduced to one under certain conditions by August 1996.
• To contribute to the convenience of motor vehicle users by expanding the number of designated garages for motor vehicle repairs and maintenance, the minimum number of licensed mechanics that must be in the employ of such designated garages will be reduced to two under certain conditions by August 1996.
• To contribute to the convenience of motor vehicle users by expanding the number of designated garages for motor vehicle repairs and maintenance, such designated garages will be permitted to jointly own all inspection facilities together with other shops by February 1997.
• To contribute to the convenience of motor vehicle users by expanding the number of certified garages for motor vehicle repairs and maintenance, in addition to certification in specifying the types of motor vehicles that may be serviced, specialized certified garages that service certain types of activities such as brake repair will be permitted by February 1997.
• In accordance with the progress of motor vehicle technology and to respond appropriately to changes in the actual conditions of repairs and maintenance, a comprehensive review of the definition of disassembling repair will be conducted by August 1996.
• Since October 1995, replacement operations of shock absorbers, struts, power steering, and trailer hitches have no longer been within the definition of disassembling repair.
• From November 1995, minor modification of the vehicle structure or configuration such as attaching accessories by means other than welding or rivets will no longer be subject to modification inspections.
• Within fiscal year 1995, preferential handling procedures for imported motor vehicles (PHP) will be expanded to include trucks and buses.
• Within 1995, the European Union exhaust gas durability testing conditions will be accepted for motor vehicle type designation.
• Within fiscal year 1995, for the type certification of GMDSS-related equipment, efforts will be made to realize conformity between international standards and type certification testing standards under the Ships Safety Act.

(3) Other deregulation measures

• Efforts are being made to simplify and expedite visa issuance procedures to the greatest possible extent. From 1995, the range of rapid issuance procedures for short periods of stay is being expanded for certain specified nations, measures to extend the valid period for certain multiple-entry visas are being taken, and plans are being made for the automation of visa paperwork to expedite and rationalize the issuance of visas.
• Based on a review of the standards for the issuance of multiple-entry visas throughout the APEC region, the standards for the issuance of multiple-entry visas (with a validity of one year or three years, and with a period of stay of 15 days or 90 days) will be relaxed for people from the APEC region coming to Japan for business purposes. This measure will be implemented from January 1, 1996.
• For items currently designated under the resale price maintenance system with regard to medicines, surveys will be conducted on the situation after the previous partial revocation of designated items which were exempted from the Antimonopoly Act application, and, based on the results of these surveys, procedures for revocation of the designation will be implemented in fiscal year 1996.

3. IMPORT PROMOTION

(a) An improved and expanded version of the System of Tax Incentives for Manufactured Imports

(1) This system is applicable to enterprises which have increased their imports of manufactured products by more than 2% over the base year (the fiscal year after FY89 in which imports were highest).
In this case, the system permits wholesalers and retailers to have reserve funds and manufacturers to select either tax credits or special depreciation on their facilities and equipment.
The system applies to manufactured products with a zero tariff rate, and will be valid until March 31,1997.

(2) To promote import efforts further, the system was expanded in April 1995 to raise the upper limit on the rate of increase of imports from the original 10% level to 30% and the upper limit on reserve fund, tax credit and special depreciation rates to double the current rates.

(b) Establishment of Foreign Access Zones (FAZ)

(1) The "Import and Inward Investment Law" ("the FAZ law") is designed to effectively promote imports to Japan by improving import-related infrastructure in areas such as airports and harbors.

(2) The original FAZ law established support measures such as government financing and loans for the construction of import-related joint facilities such as joint handling and joint wholesale facilities in FAZ-designated areas. However, given that the objectives of the FAZ law could not be met without private sector actually doing business in Foreign Access Zones, the term of the law was extended by ten years up to 2006 and the following incentives offered to entrepreneurs such as wholesalers, manufacturers and importers establishing their businesses in designated areas within Foreign Access Zone.

• Reductions in real estate acquisition taxes and fixed assets taxes
• Loan guarantees from government-related organizations on funds borrowed from financing institutions
• Special credit insurance treatment from government-related organization for small and medium enterprises
• JETRO establishment of FAZ Support Centres in Foreign Access Zones, provision of advice and information

(3) The revised FAZ law was approved by the Diet on October 25 and put into effect as of November 16.

4. TRADE AND INVESTMENT FACILITATION

(a) Foreign Operations of Small and Medium Enterprises

(1) Recent changes in the economic structure such as the rapid appreciation of the yen have forced Japan's small and medium enterprises (SMEs) to cut costs and generally restructure themselves in order to adapt to the new environment. While this has also meant an increase in the number of SMEs looking seriously at moving abroad, these companies then have to deal with such problems as access to financing and information etc.

(2) In the period between establishment of the Restructuring Law and September 30, 1995, 271 plans have been approved, 256 of these for projects in the APEC region, with SMEs involved in areas from textiles to electronics either planning or implementing their shift out into the APEC region and further afield.

(b) Expansion of the coverage of current voluntary measures on government procurement to services

(1) Outline of current voluntary measures on government procurement

Since April 1994, procurement contracts valued no less than 100,000 SDR by 114 ministries, agencies and other government-related entities have been subject to the Procedures for Government Procurement on Products (Operational Guidelines).
Major characteristics of the Operational Guidelines, which cover procurement contracts valued less than those covered by the new Agreement on Government Procurement, are voluntary procedures not stipulated in the new Agreement (WTO-plus measures), including provision of procurement information prior to tendering, procedures for entities to request the submission of materials from suppliers and procedurers for entities to request comments on draft specifications from suppliers.

(2) Expansion of the coverage to services

The Japanese Government is now preparing to make a formal decision, in a couple of weeks, to expand the scope of application of the Operational Guidelines to the procurement of some service areas as of January 1, 1996.
The services newly subject to the above Operational Guidelines are those which the Japanese Government included in the Annex as subject to the new Agreement on Government Procurement. Those subject to the guidelines include:

Among those included in the Annex, respective voluntary measures have already been adopted and implemented on telecommunications services, computer and related services, and construction services.

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