JAPAN Law and Practice Contributed by: Makoto Terazaki, Taku Matsumoto, Suguru Yokoi, Naoko Takasaki and Jun Suzuki, Anderson Mori & Tomotsune
1. Overview of the Defence Regulatory Framework 1.1 Principal Legislation and Regulatory Framework Japan does not have a single standalone statute gov - erning the defence sector; rather, the framework is built around the Act for Establishment of the Ministry of Defense, the Self-Defense Forces Act, the Act on the Protection of Specially Designated Secrets, and the Act on Strengthening the Production Base for Defense Equipment and Other Items Procured by the Ministry of Defense, together with related subordinate legislation. Defence procurement is further shaped by the Accounts Act; the Cabinet Order concerning the Budget, Auditing and Accounting; the National Prop - erty Act; the Contract Management Regulations; and, for local governments, the Local Autonomy Act and its Enforcement Ordinance. Export control, sanctions and FDI screening are primarily implemented under the Foreign Exchange and Foreign Trade Act (FEFTA) and its subordinate cabinet orders, ministerial ordi - nances and public notices. 1.2 Competent Authorities The Ministry of Defense (MOD) is the principal author - ity for defence-sector regulation, and its external bureau, the Acquisition, Technology & Logistics Agen - cy (ATLA), handles integrated defence equipment development and acquisition, and oversees procure - ment-related compliance. The Ministry of Economy, Trade and Industry (METI) is responsible for export- control enforcement and trade sanctions, the Minis - try of Finance (MOF) for financial sanctions and FDI screening, and the Ministry of Foreign Affairs (MOFA) for sanctions policy and international co-ordination. These authorities co-ordinate where issues overlap, while suspected criminal conduct may also be han - dled by the police and public prosecutors. 1.3 Definition of “Defence” and “Dual-Use” Japanese law does not provide a single, comprehen - sive statutory definition of “defence” goods, services and technology or “dual-use” items. Instead, different terms and definitions are used under different legal frameworks. For example, the Act on Strengthening the Production Base for Defense Equipment and Oth - er Items Procured by the Ministry of Defense defines
“defence equipment and other items” as equipment, vessels, aircraft, food and other supplies, including parts and components, where such items are exclu - sively intended for use by the Self-Defense Forces. Under the Three Principles on Transfer of Defense Equipment and Technology, “defence equipment” means “weapons” and “weapons technology”. “Weapons” are items listed in Category 1 of Appended Table 1 of the Export Trade Control Order that are used by armed forces and intended for direct combat, while “weapons technology” means technology relat - ing to the design, manufacture or use of weapons. The Three Principles and their implementation guide - lines set out the circumstances in which transfers of defence equipment may be permitted, as well as the framework for reviewing and appropriately managing such transfers. Actual transfers also require, where applicable, export authorisation under the FEFTA. “Dual-use” items are generally goods or technology that can be used for both civilian and military purpos - es. Under Japan’s export control regime, goods and technology with civilian applications may be subject to list-based controls under the Export Trade Control Order and the Foreign Exchange Order, in light of their potential for military diversion. These controls cover a wide range of goods and technology, including items such as semiconductors and machine tools. Whether an item is subject to control is determined by whether it meets the prescribed requirements, including speci - fications and performance criteria. Even where an item is not subject to list-based controls, it may be subject to catch-all controls depending on the end-use and end-user, where the applicable requirements are met. 1.4 International Frameworks and Treaty Obligations Japan’s defence-related regulatory framework broad - ly reflects international security and export control frameworks. These frameworks are implemented pri - marily through Japan’s security export control regime. Japan’s security export control regime reflects the arrangements adopted under the Wassenaar Arrange - ment (WA), the Missile Technology Control Regime (MTCR), the Australia Group (AG) and the Nuclear Suppliers Group (NSG). The goods and technologies
115 DEFENCE CONTRACTS 2026
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