Foreign Exchange and Foreign Trade Act

It is prohibited to construe any provisions of this Act as eliminating, changing, or affecting the application of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947) or the authority exercised by the Fair Trade Commission based on that Act in any position whatsoever.

The provisions of this Act or any order based on this Act under which the permission, approval or any other disposition of the competent minister is required do not apply pursuant to the provisions of Cabinet Order if a governmental organization performs an act that requires the permission, approval, or any other disposition.

The competent minister may attach conditions to the permission or approval under this Act or an Order that is based on this Act or change these conditions.

The conditions referred to in the preceding paragraph must be the minimum conditions necessary for ensuring the reliable implementation of the matters concerning the permission or approval referred to in that paragraph.

To the extent necessary for the enforcement of this Act, the competent minister may have their ministry officials enter the business office, office, factory, or other facility of a person that has carried out a transaction or other action or made or received a payment governed by this Act or of any relevant person to inspect books and documents or other objects or to question any relevant person.

When a ministry official enters a facility pursuant to the provisions of the preceding paragraph, they must carry identification and present it to the relevant persons.

The authority to conduct an on-site inspection or questioning under paragraph (1) must not be construed as having been granted for the purpose of a criminal investigation.

The competent minister may delegate part of their authority under this Act to the heads of local branch offices pursuant to the provisions of Cabinet Order.

The competent minister may have the Bank of Japan handle some of the administrative functions connected with this Act's enforcement, pursuant to the provisions of Cabinet Order.

If the competent minister has the Bank of Japan handle some administrative functions pursuant to the provisions of the preceding paragraph, the provisions of Article 43, paragraph (1) of the Bank of Japan Act (Act No. 89 of 1997) do not apply to those administrative functions.

If the competent minister has the Bank of Japan handle some administrative functions pursuant to the provisions of paragraph (1), it may be decided that the Bank of Japan will bear the expenses required to handle those functions.

Cabinet Order prescribes which minister is the competent minister provided for in this Act.

Unless otherwise provided for, Cabinet Order prescribes which minister is the competent minister for the business that is provided for in this Act, in terms of the competent minister for business involving inward direct investment and equivalent actions; for business involving specified acquisitions; and for business involving the entry into, renewal, and modification of technology introduction contracts.

The minister stated in the relevant of the following items may request the Minister for Foreign Affairs or the head of any other relevant administrative organ to provide materials or information, state opinions, or provide other necessary cooperation with regard to the operation of the provisions specified in that item, on finding it to be particularly necessary to do so:

the competent minister:Article 16, paragraph (1) or Article 25, paragraph (6);

the Minister of Finance:Article 21, paragraph (1);

the Minister of Economy, Trade and Industry:Article 24, paragraph (1), Article 25, paragraphs (1) through (4), Article 48, or Article 52; and

the Minister of Finance and the competent minister for the business:Article 27, paragraph (3) (including as applied mutatis mutandis pursuant to Article 27-4, paragraph (2)), Article 27-2, paragraph (3), Article 28, paragraph (3) (including as applied mutatis mutandis pursuant to Article 28-4, paragraph (2)), Article 28-2, paragraph (3), or Article 29-2, paragraph (1), (2), or (9).

On finding that it is particularly necessary to do so in order for Japan to faithfully perform its obligations under a treaty or other international agreement that it has concluded or to allow Japan to contribute to international efforts toward international peace, the Minister for Foreign Affairs or the head of any other relevant administrative organ may state their opinion to any of the ministers stated in items (i) through (iii) with regard to the operation of the provisions stated in each of those items; on finding it to be particularly necessary to do so in order to maintain international peace and security, the Minister for Foreign Affairs or the head of any other relevant administrative organ may state their opinion to the minister specified in item (iv) with regard to the operation of the provisions stated in that item; on finding it to be particularly necessary to do so due to the likelihood of a situation that would compromise national security, interfere with the maintenance of public order, or create an obstacle to the preservation of public safety, or due to the likelihood of a situation that would have a significant adverse effect on the smooth operation of the Japanese economy, the Minister for Foreign Affairs or the head of any other relevant administrative organ may state their opinion to the minister specified in item (v) with regard to the operation of the provisions stated in that item; and on finding it to be particularly necessary to do so due to the high likelihood of a situation that would undermine national security, the Minister for Foreign Affairs or the head of any other relevant administrative organ may state their opinion to each of the ministers specified in items (vi) and (vii) with regard to the operation of the provisions stated in each of those items:

Article 16, paragraph (1) or Article 25, paragraph (6):the competent minister;

Article 21, paragraph (1):the Minister of Finance;

Article 24, paragraph (1), Article 48, paragraph (3), or Article 52:the Minister of Economy, Trade and Industry;

Article 25, paragraphs (1) through (4), or Article 48, paragraph (1) or (2):the Minister of Economy, Trade and Industry;

Article 27, paragraph (3) (including as applied mutatis mutandis pursuant to Article 27-4, paragraph (2)) or Article 27-2, paragraph (3):the Minister of Finance and the competent minister for the business;

Article 28, paragraph (3) (including as applied mutatis mutandis pursuant to Article 28-4, paragraph (2)) or Article 28-2, paragraph (3):the Minister of Finance and the competent minister for the business; and

Article 29-2, paragraph (1), (2), or (9):the Minister of Finance and the competent minister for the business.

The Minister of Finance and the competent minister for the business must, in accordance with the category of inward direct investment or equivalent action or specified acquisition stated in the following items, seek the opinion of the Prime Minister, the Minister for Foreign Affairs, and the heads of other relevant administrative organs if they find it necessary in order to confirm whether that inward direct investment or equivalent action or specified acquisition falls under what is prescribed in the relevant item.

inward direct investment or equivalent action prescribed in Article 27, paragraph (1) that is subject to examination under the provisions of Article 27, paragraph (3) (including as applied mutatis mutandis pursuant to Article 27-4, paragraph (2)): inward direct investment or equivalent action that is a matter of national security or a similar concern;

a specified acquisition prescribed in Article 28, paragraph (1) that is subject to examination under the provisions of Article 28, paragraph (3) (including as applied mutatis mutandis pursuant to Article 28-4, paragraph (2)): a specified acquisition that is a matter of national security.

an inward direct investment or equivalent action prescribed in Article 29-2, paragraph (1) or a specified acquisition prescribed in that paragraph, either of which is the subject of a request for a report under that paragraph: inward direct investment or equivalent action that is a matter of national security or specified acquisition that is a matter of national security.

The Minister of Finance and the competent minister for the business may provide the authorities of a foreign country that enforce a foreign law or regulation which is equivalent to this Act (limited to the parts concerning Articles 27 and 28) (hereinafter referred to as "foreign authorities" in this Article), with information that the ministers find will contribute to the performance of their duties (limited to duties equivalent to those provided for in Articles 27 and 28 of this Act; the same applies in the following paragraph); provided, however, that this does not apply if it is found that providing them with that information is likely to interfere with the proper enforcement of this Act or otherwise prejudice Japan's interests.

The Minister of Finance and the competent minister for the business must confirm the following particulars on the occasion of providing the foreign authorities with the information prescribed in the preceding paragraph:

that the foreign authorities are able to provide the Minister of Finance and the competent minister for the business with information equivalent to that which is prescribed in the preceding paragraph;

that, in that foreign country, the laws and regulations guarantee the same level of confidentiality as in Japan will be maintained with regard to any information that the ministers provide pursuant to the provisions of the preceding paragraph which they provide as confidential information; and

that the foreign authorities will not use the information that the ministers provide pursuant to the provisions of the preceding paragraph for any purpose other than one that contributes to the performance of their duties.

Appropriate measures must be taken so that information that is provided pursuant to the provisions of paragraph (1) is not used in criminal proceedings conducted by a court or judge in a foreign country (simply referred to as "criminal proceedings" in the following paragraph) without the consent under the following paragraph.

Except in a situation that falls under one of the following items, at the request of the foreign authorities, the Minister of Finance and the competent minister for the business may consent to the use of the information they have provided pursuant to the provisions of paragraph (1) in the criminal proceedings to which the request pertains:

if the offense subject to the criminal proceedings to which the request pertains is a political offense, or if the request is found to have been made for the purpose of conducting criminal proceedings in connection with a political offense;

if the act involved in the offense subject to the criminal proceedings to which the request pertains would not constitute an offense under the laws and regulations of Japan if it had been performed in Japan; or

if the requesting country does not guarantee that it will meet requests of the same kind that Japan makes.

Before the Minister of Finance and the competent minister for the business give the consent referred to in the preceding paragraph, they must receive confirmation from the Minister of Justice that the situation does not fall under item (i) or (ii) of that paragraph and confirmation from the Minister for Foreign Affairs that the situation does not fall under item (iii) of that paragraph.

If an order is enacted, amended, or repealed based on the provisions of this Act, any required transitional measures (including transitional measures for penal provisions) may be prescribed by that order, to the extent that is considered to be reasonably necessary for the enactment, amendment, or repeal of that order.