Database

Browse Database

JAPAN

Reported in 2020, last reported in 2025

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Reported barriers to foreign suppliers in public procurement
It is reported that foreign firms in several sectors have expressed concern that the Japanese Government at times employs technical specifications that may exclude foreign products and services and, in certain cases, may also exert pressure on relevant entities to favour domestic companies in procurement processes.
Coverage Horizontal

JAPAN

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of coverage of CPC 754 and partial coverage of CPC 752 in the WTO Government Procurement Agreement (GPA)
Japan is a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). Although its commitments include a service sector regarded as central to digital trade, namely computer and related services (CPC 84), they do not extend to telecommunication‑related services (CPC 754), while telecommunication services (CPC 752) are only partly included.
Coverage Telecommunications sector

JAPAN

Since December 1984

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Act on Nippon Telegraph and Telephone Corporation, etc. - Act No. 85 of 1984 (日本電信電話株式会社等に関する法律 - 昭和五十九年法律第八十五号)
Ar. 4.1 of the "Act on Nippon Telegraph and Telephone Corporation, etc." stipulates that the government must at all times hold more than one‑third of the total number of issued shares in the telecommunications company Nippon Telegraph and Telephone (NTT).
Coverage Telecommunications sector
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'JP')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"110825"},{"post_id":"110826"},{"post_id":"110827"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'JP')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'JP')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
ITA: [{"meta_value":"0.00"}]

JAPAN

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.25%
Coverage rate of zero-tariffs on ICT goods (%)
92.22%
Coverage: ICT goods

NEPAL

Since March 2025

Pillar Online sales and transactions  |  Indicator Licensing scheme for e-commerce providers
Electronic Commerce Act, 2081 (2025) (विद्युतिय व्यापार (इ-कमर्स) ऐन, २०८१)
Pursuant to Art. 3 of the Electronic Commerce Act, 2081 (2025), any firm, company, or institution that is duly registered and authorised under the prevailing law to trade in goods or services may engage in electronic commerce, subject to compliance with the Act.
Art. 4(1) further requires each business entity conducting electronic commerce to establish an electronic platform. Once the platform is established, Art. 5(1) obliges the business entity to submit an electronic application to be listed on the Department's electronic commerce portal. The application must include, inter alia, the business name and address, the registering authority, the registration certificate number, the VAT registration number or permanent account number, and contact details, including a telephone number, email address, social media link, and contact address.
In addition, Art. 1(3) provides that the Act applies throughout Nepal and also extends to persons residing or staying outside Nepal who supply goods or services within Nepal through electronic commerce.
Coverage Electronic transactions

NEPAL

Since March 2021

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Forex Circular No. 10/2077-78
In March 2021, Nepal’s central bank, the Nepal Rastra Bank (NRB), issued Forex Circular No. 10/2077-78 (dated 2077/12/08), amending the Unified Foreign Exchange Circular–2076 by introducing a new Clause 7 on foreign-currency prepaid cards for online purchases from abroad. This reform enabled licensed Class “A” commercial banks and national-level Class “B” development banks to issue foreign-currency prepaid cards, thereby opening access to international online payments that had previously been infeasible with cards issued by Nepali banks.
Clause 7 authorises the use of these cards for the purchase of goods and services online from overseas, but imposes an annual cap of USD 500 (or the equivalent in convertible currency). In practice, this cap limits the value of cross-border e-commerce transactions that individuals can conduct each year using such cards. This rule was subsequently incorporated into the Nepal Rastra Bank’s consolidated foreign-exchange unified circular framework, including Unified Circular-2079 (2022), which tightened the use of these USD 500 prepaid cards by restricting payments for specified merchant category codes, and later the Revised Unified Circular-2023.
Coverage Horizontal

NEPAL

Since March 2025
Since July 2018

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Unified Directives Related to Payment Systems 2081 (नेपाल राष्ट्र बैंकबाट भुक्तानीसम्बन्धी कार्य गर्न अनुमतिपत्रप्राप्त संस्थाहरूलाई जारी गरिएको भुक्तानी प्रणालीसम्बन्धी एकीकृत निर्देशन – २०८१)

Nepal Rastra Bank Directive of 2018
Under Directive No. 5/2081 of the Unified Directives Related to Payment Systems 2081, specific transaction limits apply to electronic transactions, including those conducted via mobile banking, internet banking, and e-wallets.
Pursuant to Sections 2–3 of the Directive on transactions conducted through mobile banking and web applications, daily transaction limits apply depending on the channel and instrument used. Transactions carried out through a mobile application, including QR-code payments, are capped at NPR 300,000 (approx. USD 2,000) per day, while transactions conducted through a web application are capped at NPR 2,000,000 (approx. USD 13,000) per day. For electronic wallets, transfers from a bank account to a wallet are limited to NPR 200,000 (approx. USD 1,300) per day and NPR 1,000,000 (approx. USD 6,600) per month. Transfers from a wallet to a bank account, including QR-code payments, are subject to the same daily and monthly caps. Wallet-to-wallet transfers are subject to lower limits of NPR 50,000 (approx. USD 330) per day and NPR 500,000 (approx. USD 3,300) per month, regardless of whether funding is derived from multiple bank accounts or wallets. In addition, a natural person’s wallet may be loaded no more than 10 times per day, and an electronic wallet may not hold an overnight balance exceeding NPR 50,000 (approx. USD 330), with any excess required to be transferred to the customer’s linked bank account.
The Nepal Rastra Bank, serving as Nepal's Central Bank, has established these ceilings on maximum daily and monthly electronic transaction amounts through various directives, starting with one issued in 2018.
Coverage Electronic transactions

NEPAL

N/A

Pillar Online sales and transactions  |  Indicator Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
Nepal does not implement any de minimis threshold, which is the minimum value of goods below which customs do not charge duties.
Coverage Horizontal

NEPAL

N/A

Pillar Online sales and transactions  |  Indicator Restrictions on domain names
Policy for Domain Name Registration Under NP CCTLD
According to the NP CCTLD domain name registration policy, only foreign companies registered in Nepal or registered trade names (trademarks) with the government can register a '.np' domain.
Coverage Horizontal

NEPAL

Since November 2023

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Directives on the Operation of Social Networking, 2023 (सामाजिक सञ्जालको प्रयोगलाई व्यवस्थित गर्ने निर्देशिका, २०८०)
Under the Directives for Managing the Use of Social Networks, 2023, Nepal operates an authorisation regime based on registration for social network platform operators. Under Art. 3.1, any person, company, or institution intending to operate a social network platform must enlist the platform with the Ministry. The Ministry must issue a public notice for enlistment (Art. 3(2)), and existing platforms must enlist within 3 months of commencement (Art. 3(3)). Operators must apply using the prescribed format and supporting documents (Art. 3(4)–(6)), after which the Ministry issues an enlistment memorandum. Platforms that are not enlisted may be prohibited from operating in Nepal (Art. 3(7)).
In addition, Art. 6 requires the operator to arrange a point of contact in Nepal. Where a platform does not have an office in Nepal, it must establish an office or designate a local contact person.
Art. 2 of the Directive defines SNPs as Internet or information technology-based operating systems available to the public, such as Facebook, TikTok, Viber, Pinterest, WhatsApp, Messenger, Instagram, YouTube, LinkedIn, WeChat, and others, that facilitate the exchange of ideas or information among individuals or organisations and enable the dissemination of user-generated content.
Coverage Social media platforms

NEPAL

Since September 2018
Since December 2006

Pillar Online sales and transactions  |  Indicator Framework for consumer protection applicable to online commerce
Consumer Protection Act, 2075 (2018) (उपभोक्ता संरक्षण ऐन, २०७५)

Electronic Transactions Act, 2063 (2008) (विद्युतीय (इलेक्ट्रोनिक) कारोबार ऐन, २०६३)
The Consumer Protection Act and the Electronic Transactions Act provide a comprehensive framework for consumer protection that also applies to online transactions. The Law on Electronic Transactions regulates electronic communications and records and establishes legal provisions for authenticating and regulating electronic data. It also establishes a secure, authentic method of electronic communication while addressing regulatory issues related to electronic transactions.
Coverage Horizontal

NEPAL

N/A

Pillar Online sales and transactions  |  Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Nepal has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

NEPAL

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Nepal has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

NEPAL

N/A

Pillar Online sales and transactions  |  Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Nepal has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

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