JAPAN Law and Practice Contributed by: Makoto Terazaki, Taku Matsumoto, Suguru Yokoi, Naoko Takasaki and Jun Suzuki, Anderson Mori & Tomotsune
For defence equipment, in addition to export controls under the FEFTA, policy-level assessments are con - ducted based on the Three Principles on Transfer of Defense Equipment and Technology and the relevant implementation guidelines. The key authorities involved are as follows: • METI – responsible for export licences and tech - nology transfer licences under the FEFTA; • MOD and ATLA – responsible for defence equip - ment transfer policy and defence equipment and technology co-operation; and • the National Security Council (NSC). These may be involved in policy decisions concerning certain significant defence equipment transfer cases. 3.2 Scope of Controls: Military and Dual-Use Lists Under Japan’s security export control regime, regulat - ed items are specified for both goods and technology as set out below. Japan does not maintain a separate standalone military list. Goods Controls For goods, controlled items are listed in the Appended Table 1 of the Export Trade Control Order. • Category 1 – weapons (defence-related goods); • Categories 2 to 15 – goods related to weapons of mass destruction and advanced dual-use goods; and • Category 16 – complementary export controls (applicable catch-all controls based on factors such as the end use and end user). In particular, defence equipment is primarily regulated as “weapons” listed under Category 1. Technology Controls The scope of controlled technology is specified in the Appended Table of the Foreign Exchange Order and is managed in a manner corresponding to the goods control framework. Examples of controlled technology include:
• design technology; • production technology; • use technology; and • software-related technology. Relationship With International Export Control Regimes Japan’s list controls are updated through amendments to relevant laws and regulations, taking into account changes in the consensus reached under international export control regimes, technological developments, and changes in the international security environment. As noted in 1.4 International Frameworks and Treaty Obligations , Japan’s security export control regime reflects the arrangements adopted under the Wasse - naar Arrangement (WA), the Missile Technology Con - trol Regime (MTCR), the Australia Group (AG) and the Nuclear Suppliers Group (NSG). METI describes Japan’s security export control regime as a system under which countries co-operate to control goods and technology based on agreements reached through international export control regimes. However, Japan does not publish a quantitative assessment, such as, by specifying the extent to which its control lists reflect the lists of each interna - tional regime. 3.3 Licence Requirements Export of controlled defence and dual-use items, the provision of controlled technology and certain bro - kering transactions are subject to export licensing requirements under the FEFTA. An export licence is required for the export of controlled goods, and a sep - arate licence is required for the provision of controlled technology. Japan does not have a standalone licens - ing regime for transit. However, certain temporarily landed cargo may require an export licence under the FEFTA where there is a risk that it could be used for the development or production of nuclear weapons or other weapons of mass destruction. The licensing regime is broadly divided into individual licences and bulk licences. • Individual licences are issued on a transaction-by- transaction basis and apply to exports and tech -
120 DEFENCE CONTRACTS 2026
CHAMBERS.COM
Powered by FlippingBook