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  5. Cabinet Decision on the Bill for the Act on Promotion of Developing/Supplying and Introducing Systems Making Use of Specified Advanced Information Communication Technologies

Cabinet Decision on the Bill for the Act on Promotion of Developing/Supplying and Introducing Systems Making Use of Specified Advanced Information Communication Technologies

February 18, 2020

A Cabinet Decision was made on the Bill for the Act on Promotion of Developing/Supplying and Introducing Systems Making Use of Specified Advanced Information Communication Technologies. The bill will be submitted to the ongoing ordinary session of the Diet.

1. Purpose of the bill

Amid dramatic development of digital technologies and changes in international economic environments and other situations surrounding Japan, Japanese companies must contend with the increasing importance of appropriately developing, supplying, and introducing systems making use of specified advanced information communication technologies (hereinafter referred to as the “systems”), e.g., 5G and drones, which are technologies serving as social foundations indispensable for achieving the Society 5.0 policy, in parallel with providing ensured cybersecurity measures to protect the systems.

In light of this situation, the Ministry of Economy, Trade and Industry (METI) will take measures necessary for developing Japan’s industrial foundations and disseminating the systems.

2. Outline of the bill

The major measures to be taken under the bill are as follows:

(1) Formulating guidelines

The Act is to require the government to formulate guidelines for businesses on promoting development/supply and introduction of the systems. The guidelines are to explicitly describe the importance for businesses in appropriately developing/supplying and introducing the systems in parallel with providing ensured cybersecurity measures to protect the systems.

(2) Creating a system for approving a development and supply plan as well as an introduction plan concerning the systems

The Act is to require the government to create a new system for approving a development and supply plan and an introduction plan concerning the systems. The Act is also to require the government to check the conformity between the plans and the guidelines mentioned in Item (1) above when the government approves the plans.

(3) Providing support measures to disseminate the systems

The Act is to require the government to provide the following support measures concerning development/supply and introduction of the systems that businesses will conduct in accordance with the approved plans in Item (2) above.

  1. Special treatments for allowing the Japan Finance Corporation to conduct specific services (two-step loans);

  2. Special treatments under the Small and Medium-sized Enterprise Investment Business Corporation Act;

  3. Special treatments under the Small and Medium-sized Enterprise Credit Insurance Act; and

  4. Special treatments for taxation (tax systems for promoting investments in 5G: tax deduction: 15%; special depreciation: 30%; etc.).

3. Enforcement date of the bill

The Act will come into effect as of the date specified by Cabinet Order within a period not exceeding three months from the date of promulgation.

Division in Charge

IT Industry Division, Commerce and Information Policy Bureau

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