JAPAN
N/A
Pillar Telecom infrastructure & competition |
Sub-pillar Presence of an independent telecom authority
Lack of an independent telecom authority
Japan has a telecommunications authority: The Ministry of Internal Affairs and Communications. However, it is reported that this entity's decision-making process is not fully independent of the government.
Coverage Telecommunications sector
JAPAN
Since 2020
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Guidelines on Security Management of Information System and Services Handling Medical Information (医療情報を取り扱う情報システム・サービスの 提供事業者にお る安全管理ガイドライン)
The Guidelines on Security Management of Information System and Services Handling Medical Information provide that information systems for the handling of medical data must be located in the territory of Japan so that in the event of an emergency, Japanese governmental authorities can enforce their power to collect information or issue administrative orders. Although this is not a mandatory requirement based on a specific law, it is reported that some medical institutions have requested that service providers maintain servers inside Japan to comply with these Guidelines.
Coverage Information systems for the handling of medical data
JAPAN
Since 2016, last amended in 2018
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Common Standards for Information Security Measures for Government Agencies and Related Agencies (政府機関等のサイバーセキュリティ対策のための統一基準群)
The National Center of Incident Readiness and Strategy for Cybersecurity (NISC) “Common Standards for Information Security Measures for Government Agencies” allows for government agencies to make use of systems that are "isolated" from the internet if necessary (Chapter 5.2.1). Information on the agencies affected is not readily available.
Coverage Public sector
Sources
- https://web.archive.org/web/20240127133318/https://www.nisc.go.jp/eng/pdf/kijyun30-en.pdf
- https://web.archive.org/web/20231101170055/https://www.bsa.org/files/policy-filings/06282018BSACommentsNISC2018CommonStands_en.pdf
- https://web.archive.org/web/20220308082340/https://www.nisc.go.jp/eng/pdf/Common%20Standards(FY2016).pdf
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JAPAN
Since 2003 as amended in May 2015, entry into force in May 2017
Since 2016
Since 2016
Pillar Cross-border data policies |
Sub-pillar Conditional flow regime
Act on the Protection of Personal Information (Act No. 57 of 2003) (個人情報の保護に関する法律(平成十五年法律第五十七号))
Enforcement Rules for the Act on the Protection of Personal Information (個人情報の保護に関する法律施行規則(平成二十八年個人情報保護委員会規則第三号))
Enforcement Rules for the Act on the Protection of Personal Information (個人情報の保護に関する法律施行規則(平成二十八年個人情報保護委員会規則第三号))
The Act on the Protection of Personal Information (Act No. 57 of 2003) (APPI) did not originally restrict the transfer of personal information to foreign countries, but amendments enacted in 2015 and which took effect in May 2017 added restrictions on cross-border data flows. The amended APPI prescribes three types of legitimate transfers of personal information to a third party in a foreign country under Article 24: (1) transfers to a country that the Personal Information Protection Commission (PPC) has designated as having an acceptable level of data protection; (2) transfers to a third party in a foreign country in circumstances in which actions have been taken to ensure the same level of data protection as in Japan (such as entering into a data transfer agreement imposing obligations on the transferee meeting the requirements of the APPI); or (3) transfers with the data subject’s consent.
Under the Enforcement Rules for the APPI (promulgated in 2016), as for (2), Art. 11 specifies that it means: "(i) a personal information handling business operator and a person who receives the provision of personal data have ensured in relation to the handling of personal data by the person who receives the provision the implementation of measures in line with the purport of the provisions under Chapter IV, Section 1 of the Act by an appropriate and reasonable method or (ii) a person who receives the provision of personal data has obtained a recognition based on an international framework concerning the handling of personal information." To date, the only PPC-recognised international framework is the APEC Cross-Border Privacy Rules System.
Under the Enforcement Rules for the APPI (promulgated in 2016), as for (2), Art. 11 specifies that it means: "(i) a personal information handling business operator and a person who receives the provision of personal data have ensured in relation to the handling of personal data by the person who receives the provision the implementation of measures in line with the purport of the provisions under Chapter IV, Section 1 of the Act by an appropriate and reasonable method or (ii) a person who receives the provision of personal data has obtained a recognition based on an international framework concerning the handling of personal information." To date, the only PPC-recognised international framework is the APEC Cross-Border Privacy Rules System.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220312021628/https://www.ppc.go.jp/files/pdf/Act_on_the_Protection_of_Personal_Information.pdf
- https://web.archive.org/web/20231005032856/https://www.ppc.go.jp/files/pdf/PPC_rules.pdf
- https://web.archive.org/web/20220209102858/https://www.lexology.com/library/detail.aspx?g=d581c9e6-e02d-4e72-92d2-2db75295ff92
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JAPAN
Since March 2018
Since January 2020
Since December 2020
Since January 2020
Since December 2020
Pillar Cross-border data policies |
Sub-pillar Participation in trade agreements committing to open cross-border data flows
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Agreement Between The United States Of America And Japan Concerning Digital Trade
Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan for a Comprehensive Economic Partnership
Agreement Between The United States Of America And Japan Concerning Digital Trade
Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan for a Comprehensive Economic Partnership
Japan has joined agreements with binding commitments to open transfers of data across borders: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP, Art. 14.11), the Agreement Between The United States Of America And Japan Concerning Digital Trade (Art. 11), and the Agreement between the United Kingdom of Great Britain and Northern Ireland and Japan for a Comprehensive Economic Partnership (Art 8.84).
Coverage Horizontal
JAPAN
Since May 2003, last amended in April 2022
Pillar Domestic data policies |
Sub-pillar Framework for data protection
Act on the Protection of Personal Information (Act No. 57 of 2003) (個人情報の保護に関する法律(平成十五年法律第五十七号))
The Act on the Protection of Personal Information (Act No. 57 of 2003) (APPI), enacted in 2003 and last amended in 2022, is Japan's data protection regime. The Amendment Bill of the Act on the Protection of Personal Information was approved by the Diet in June 2020 and entered into effect on 1 April 2022.
In addition to the APPI, the Personal Information Protection Commission (PPC) issued general guidelines, guidelines on data transfer to a third party in a foreign country, guidelines on confirmation and records for providing to a third party, and guidelines on anonymously processed information. Furthermore, the Guideline on Personal Information Protection in Telecommunications Business issued by the Ministry of Internal Affairs and Communications, genetic information guidelines issued by the Ministry of Economy, Trade and Industry, financial affairs guidelines jointly issued by the PPC and the Financial Services Agency, medical care guidelines jointly issued by the PPC and the Ministry of Health, Labour and Welfare are also relevant.
In addition to the APPI, the Personal Information Protection Commission (PPC) issued general guidelines, guidelines on data transfer to a third party in a foreign country, guidelines on confirmation and records for providing to a third party, and guidelines on anonymously processed information. Furthermore, the Guideline on Personal Information Protection in Telecommunications Business issued by the Ministry of Internal Affairs and Communications, genetic information guidelines issued by the Ministry of Economy, Trade and Industry, financial affairs guidelines jointly issued by the PPC and the Financial Services Agency, medical care guidelines jointly issued by the PPC and the Ministry of Health, Labour and Welfare are also relevant.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240909161706/https://www.cas.go.jp/jp/seisaku/hourei/data/APPI.pdf
- https://web.archive.org/web/20240428031309/https://www.soumu.go.jp/main_sosiki/joho_tsusin/eng/Resources/laws/pdf/090204_2.pdf
- https://web.archive.org/web/20220209102858/https://www.lexology.com/library/detail.aspx?g=d581c9e6-e02d-4e72-92d2-2db75295ff92
- https://www.dlapiperdataprotection.com/index.html?t=law&c=JP
- https://www.dataguidance.com/jurisdiction/japan
- https://web.archive.org/web/20230130033219/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
- https://web.archive.org/web/20210226213423/https://thelawreviews.co.uk/title/the-technology-media-and-telecommunications-review/japan
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JAPAN
Since 1988
Since 1965
Since March 2005
Since 1965
Since March 2005
Pillar Domestic data policies |
Sub-pillar Minimum period for data retention
Consumption Tax Act (Act No. 108 of 1988) (昭和六十三年法律第百八号 消費税法)
Corporation Tax Act (Act No. 34 of March 31, 1965) (法人税法(外国法人関連部分)
Companies Act (Act No. 86 of 2005) (平成十七年法律第八十六号 会社法)
Corporation Tax Act (Act No. 34 of March 31, 1965) (法人税法(外国法人関連部分)
Companies Act (Act No. 86 of 2005) (平成十七年法律第八十六号 会社法)
Companies are required to retain their records by the following laws:
- The Consumption Tax Act (Act No. 108 of 1988) business operators and special importers to retain consumption tax-related books and records, such as those related to asset transfers or the purchase and collection of taxable goods, for seven years after the year in which they complete the records (Art. 58.1);
- The Corporation Tax Act (Act No. 34 of March 31, 1965): books, records, and documents for seven years (Art. 126.1);
- The Companies Act (Act No. 86 of July 26, 2005): shareholder meeting minutes for ten years (Art. 318.2), account books and important business materials for ten years (Art. 432.2), and financial statements, business reports, and supplementary schedules used to prepare financial statements for ten years (Art. 435.4).
- The Consumption Tax Act (Act No. 108 of 1988) business operators and special importers to retain consumption tax-related books and records, such as those related to asset transfers or the purchase and collection of taxable goods, for seven years after the year in which they complete the records (Art. 58.1);
- The Corporation Tax Act (Act No. 34 of March 31, 1965): books, records, and documents for seven years (Art. 126.1);
- The Companies Act (Act No. 86 of July 26, 2005): shareholder meeting minutes for ten years (Art. 318.2), account books and important business materials for ten years (Art. 432.2), and financial statements, business reports, and supplementary schedules used to prepare financial statements for ten years (Art. 435.4).
Coverage Horizontal
Sources
- https://web.archive.org/web/20230609111014/https://elaws.e-gov.go.jp/document?lawid=363AC0000000108#553
- https://web.archive.org/web/20220124014018/http://www.japaneselawtranslation.go.jp/law/detail_main?re=&vm=2&id=53
- https://web.archive.org/web/20220129190741/http://www.japaneselawtranslation.go.jp/law/detail_main?re=02&vm=04&id=2035
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JAPAN
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
Japan is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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JAPAN
Since September 2009, extended in March 2014 and 2019, until 2023
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In September 2009, the Japanese authorities imposed a definitive antidumping duty on imports of electrolytic manganese dioxide (HS 282010) (a component of the battery cathode mix in alkaline and lithium-ion batteries) from China. This measure was first reviewed and extended in March 2014 and, subsequently, in March 2019. The rate of duty imposed on imports originating in China ranges from 34.3% to 46.5%, depending on the company. In March 2023, the Japanese authorities announced the initiation of a sunset review of the definitive duty imposed on imports of the subject merchandise from China. This follows the application filed on January 2023 by Tosoh Hyuga Corporation and Tosoh Corporation.
Coverage Product: Electrolytic manganese dioxide (HS 282010)
Country: China
Country: China
JAPAN
Since June 1966, last amended in August 2015
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Act on Ensuring the Receipt of Orders from the Government and Other Public Agencies by Small and Medium-Sized Enterprise Operators (Act No. 97 of 1966) (官公需についての中小企業者の受注の確保に関する法律 (昭和四十一年法律第九十七号))
The Japanese government maintains policies to encourage the participation of small and medium-sized enterprises (SMEs) in government procurement. According to Arts. 4 and 5 of Act No. 97, the central government and public corporations are required to set their own procurement target values for the procurement from SMEs on an annual basis. It has been reported that in 2021, the target amount for the procurement from micro, small, and medium-sized enterprises (MSMEs) by the Government was set at JPY 4.8 trillion (approx. USD 31 billion), which represents 61% of the total budget for public procurement spending. Furthermore, the target amount for new MSMEs that are less than 10 years old was set at 3%. In accordance with Art. 8, sub-central government entities follow the policies set up for the central government entities on an "endeavour basis".
Coverage Horizontal
Sources
- https://web.archive.org/web/20230930225036/https://elaws.e-gov.go.jp/document?lawid=341AC0000000097
- https://web.archive.org/web/20240809003457/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S438R1.pdf&Open=True
- https://web.archive.org/web/20230924071751/https://www.meti.go.jp/press/2021/09/20210924004/20210924004.html
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JAPAN
Since March 2005
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Act on Promotion of Securing Quality of Public Works (Act No. 18 of 2005)
According to Art. 19 of the Act on Promotion of Securing Quality of Public Works (Act No. 18 of 2005), government entities are permitted to adjust a target price based on the evaluation of technical proposals, particularly when novel technologies and innovations are introduced.
Coverage Horizontal
JAPAN
Reported in 2020, last reported in 2024
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Technical barriers in tenders
It is reported that the principle of non-discrimination is upheld in all procurement activities, except for preferences granted under Regional Trade Agreements (RTAs), of which Japan is a party. Currently, there are no active RTAs that grant treatment to suppliers from non-GPA (Agreement on Government Procurement) parties more favourably than suppliers from GPA parties. Suppliers from non-GPA parties are not excluded from participating in GPA-covered procurement. However, concerns have emerged over the limited participation of foreign companies in government procurement, which seems partly due to non-regulatory barriers, geographical distance from some overseas markets, and a lack of familiarity with the local market. Foreign industries have also raised issues about Japan's use of technical specifications in public procurement, claiming that these specifications have been employed to exclude certain foreign products and services.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230307070231/https://www.wto.org/english/tratop_e/tpr_e/s438_e.pdf
- https://web.archive.org/web/20240703214444/https://ustr.gov/sites/default/files/2024%20NTE%20Report_1.pdf
- https://web.archive.org/web/20231106080406/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
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JAPAN
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (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 CPC752 in the WTO Government Procurement Agreement (GPA)
Although the Japan Union is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not include telecommunications-related services (CPC 754) and only partially cover telecommunications services (CPC 752), which are important service sectors for digital trade.
Coverage Telecommunications sector
JAPAN
Since December 1984, last amended in July 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Act on Nippon Telegraph and Telephone Corporation (Act No. 85 of 1984) (日本電信電話株式会社等に関する法律 (昭和五十九年十二月二十五日法律第八十五号))
According to Arts. 4 and 6 of Act No. 85 of 1984, foreigners' aggregate ownership cannot exceed one-third of the aggregate voting rights of Nippon Telegraph and Telephone Corporation (NTT), which holds all the issued shares of NTT-East and NTT-West.
Coverage Telecommunications sector