August 2, 2019
The Cabinet approved today the Order to remove the Republic of Korea (ROK) from the Appended Table III of the Export Trade Control Order to revise the status of ROK with regards to security export control statutes. The Ministry of Economy, Trade and Industry (METI) hereby reemphasizes both its willingness to take strict measures against circumventions and other illicit exports, and the importance for exporters to exercise self-discipline in undertaking internal export control measures, regardless of export destinations or items to be exported.
1. Outline of the Amendment
- In order to ensure appropriate implementation of security export control as established in the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949), the Cabinet approved today the Order to remove ROK from the Appended Table III of the Export Trade Control Order (Cabinet Order No. 378 of 1949). In addition, METI will amend the Guidelines for Handling Bulk Export Licenses (Notice of the Trade and Economic Cooperation Bureau No.1, issued on February 23, 2005) and other related circular notices.
- As a result, exporters can no longer utilize the General Bulk Export License for exports and technology transfers to ROK. In addition, exports and technology transfers to ROK will also be subject to the catch-all control.
- At the same time, exporters can utilize the Special General Bulk Export License as before. Compared to the General Bulk Export License, the Special General Bulk Export License is granted to exporters that meet higher standards, for example those with approved prior administrative confirmation of their internal export control measures. Individual export license applications for items subject to the Special General Bulk Export License will be accepted at the Regional Bureaus of Economy, Trade and Industry as well as Trade Offices as before.
- Catch-all control: An individual export license is required for exports of non-listed items, both goods and technologies, in case where there are concerns that the items in question could have military end-uses or be applicable to WMD-related activities.
- Please refer to the announcement to be released on August 7 for further details on the amendments of circular notices.
Promulgation of the Order: August 7, 2019
Enforcement of the Order: August 28, 2019
2. New Country Categories for Security Export Control
- In practice to date, countries listed in the Appended Table III of the Export Trade Control Order have often been referred to as “White List Countries” or “Preferred Trade Partner List Countries.”
- However, the status of countries and regions that are not classified as “White List Countries” in terms of the application of Japanese export control statutes, including the applicability of bulk licenses, varies depending on their membership status in the various international export control regimes and other conditions. Therefore, METI decided to re-categorize countries and regions reflecting their actual statuses within Japanese statutes as below.
- Please note that the new categorization will not affect actual statuses of countries and regions as stipulated in the Export Trade Control Order and related circular notices.
|Group A||Countries and regions listed in the Appended Table III of the Export Trade Control Order|
|Group B*||Countries and regions participating in international export control regimes and satisfying certain conditions (excluding those in Group A)|
|Group C||Countries and regions not falling within any of Groups A, B or D|
|Group D||Countries and regions listed in the Appended Table III-2 or Appended Table IV of the Export Trade Control Order|
3. Strict Implementation of Security Export Control
- As exports of fluorinated polyimide, resists, and hydrogen fluoride to ROK have been subject to individual export licenses since July 4, METI, through strict licensing examinations, will grant such licenses if exports of the three items of concern above are verified as legitimate private transactions. At the same time, METI will take strict measures against circumventions, non-claimed usage cases and other illicit exports of both those three items of concern and goods other than those three items.
- Exporters continue to be required to exercise self-discipline in undertaking internal export control measures for effective export control regardless of destinations of items to be exported. METI requests exporters again to take all possible measures to verify end users and end use of items to be exported.
- (Reference 1) Summary of public comments (in Japanese)
- (Reference 2) Amendments to related circular notices (to be released on August 7)
Division in Charge
Trade Control Policy Division, Trade Control Department, Trade and Economic Cooperation Bureau