JAPAN Law and Practice Contributed by: Makoto Terazaki, Taku Matsumoto, Suguru Yokoi, Naoko Takasaki and Jun Suzuki, Anderson Mori & Tomotsune
Bulk Licences A bulk licence allows an exporter, subject to maintain - ing an appropriate internal export control system and conducting proper export controls under its own man - agement, to export goods or undertake other trans - actions within a specified scope without obtaining an individual licence for each transaction. Depending on the type of licence, requirements concerning the exporter’s Internal Compliance Program (ICP), export control system, ongoing business relationship and other matters may be reviewed. Processing Times Processing times vary depending on the nature and complexity of the application. For export licence appli - cations, the standard processing period is generally 90 days from acceptance of the application, although additional reviews or requests for supporting docu - ments may extend the processing time. The applica - ble processing period may also vary depending on the type of bulk licence sought. 3.5 Criteria for Granting or Refusing Licences METI reviews each export application on a case-by- case basis using a risk-based approach, assessing whether the export of the relevant goods or technol - ogy could undermine international peace and security. In conducting that review, METI considers a range of factors, including the nature and regulatory classi - fication of the goods or technology, the destination country, the end use and the end user. No single fac - tor is determinative; rather, the decision on whether a licence will be granted is made by taking all the relevant circumstances into account. Key Factors In practice, METI considers, among other things: • whether the goods are likely to reach the stated end user; • whether the end user is likely to use the goods for the stated purpose; • the risk of diversion to uses of concern, including risks arising from the attributes of the end user and the background of the transaction; and • whether the goods will be properly controlled and managed.
nology transfers involving listed items, as well as transactions that require a licence under Japan’s catch-all controls. • Bulk licences are available for exporters that satisfy certain requirements, and allow multiple transactions to be conducted without obtaining an individual licence for each transaction. The catego - ries include General Bulk Licences, Special Gen - eral Bulk Licences, Specific Bulk Licences, Bulk Licences for Specified Subsidiaries, and Special Bulk Licences for Returns and Similar Transactions. In addition to the licensing requirements under the FEFTA, transfers of defence equipment are subject to a separate policy review framework under the Three Principles on Transfer of Defense Equipment and Technology and the related implementation guide - lines. 3.4 Licence Application Process Export licence applications are generally submitted to METI. Depending on the type of goods or technol - ogy, the relevant item under the Export Trade Control Order, the destination and other circumstances, the application is filed with either the relevant Regional Bureau of Economy, Trade and Industry or the Secu - rity Export Control Examination Division of the Trade and Economic Security Bureau of METI. Applications for individual export licences are generally submitted electronically through the Nippon Automated Cargo and Port Consolidated System (NACCS). Individual Licences An individual licence is obtained for each export trans - action. The documents required vary depending on the goods or technology, the applicable control item and the destination, but generally include an export licence application, a statement of the transaction details, copies of relevant contracts and documents supporting the determination of whether the goods or technology are subject to control (such as comparison tables), as well as technical materials such as cata - logues and specifications and information concerning the end user or other relevant parties. Depending on the circumstances, additional documents or undertak - ings may be required to verify the end user, end use or other aspects of the transaction.
121 DEFENCE CONTRACTS 2026
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