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  5. METI Revises “Promotion Standards” under Article 3 (1) of the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises

METI Revises “Promotion Standards” under Article 3 (1) of the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises

Improving the business transaction conditions for SME and other subcontractors

January 9, 2019

The Small and Medium Enterprise Agency

The Ministry of Economy, Trade and Industry (METI) revised the “promotion standards” under Article 3 (1) of the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises in order to improve the business transaction conditions for SME and other subcontractors.

In September 2016, METI released Future-oriented Trade Practices, a policy for improving the business transaction conditions for SME and other subcontractors. Since then, under this policy, METI has been advancing efforts for encouraging increased efficiency of transactions throughout entire supply chains and to improve their added value as seen in METI’s follow-up survey on the progress made by industrial players in voluntary-based action plans, a compilation of actions that they intend to take, and door-to-door surveys on SME subcontractors (by dispatching inspectors who monitor subcontracting business through interviews with such subcontractors), as a government effort to ascertain subcontractors’ business conditions.

In light of challenges in SMEs’ business transaction and other problems discovered through these efforts and as an effort for encouraging entire supply chains to make business transactions more appropriate, and for improving the business transaction conditions for SME and other subcontractors, METI revised, as necessary, the “promotion standards” under Article 3 (1) of the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises so as to correct undesirable business practices, harmonize with the working style reforms, and conduct other measures.

METI will strive to raise awareness of the details of the revised standards among main subcontracting enterprises, subcontractors and industrial associations and to request that they thoroughly raise their employees’ awareness of the revised standards and examine and review their operational rules and manuals.

Moreover, based on the details of the revised standards, METI will encourage industrial players to review their voluntary-based action plans and other documents and to make additional efforts.

Release date of the revised standards:
December 28 (Fri.), 2018

Appendix

Division in Charge

Fair Trade Division, Small and Medium Enterprise Agency