Article 23Outward Direct Investment

①Before a resident conducts an outward direct investment prescribed by Cabinet Order as being likely to cause one of the situations stated in the items of paragraph (4), the resident, pursuant to the provisions of Cabinet Order, must first file a notification of the substance of the outward direct investment, its timing, and other information that Cabinet Order prescribes with the Minister of Finance.

③A resident that has filed a notification under paragraph (1) must not conduct the outward direct investment stated in the notification until the final day in the 20-day period that starts on the day that the Minister of Finance receives the notification; provided, however, that the Minister of Finance may shorten the 20-day period on finding there to be no special problems in light of the substance of the outward direct investment stated in the notification or any other circumstances.

④If the outward direct investment under a notification referred to in the preceding paragraph were undertaken, the Minister of Finance, pursuant to Cabinet Order, may issue a recommendation to the person filing the notification of the outward direct investment to modify the substance of the investment or discontinue it, but only if the minister finds that the outward direct investment would cause one of the following situations and make it difficult to achieve the purpose of this Act or if a cabinet decision referred to in Article 10, paragraph (1) has been issued; provided, however, that the period during which the minister may issue a recommendation to modify or discontinue this is within 20 days from the day on which the minister receives the notification:

⑤Notwithstanding the provisions of paragraph (3), a person that is issued a recommendation under the preceding paragraph must not undertake the outward direct investment under the notification referred to in paragraph (3) until the final day in the 20-day period that starts on the date on which the person is issued that recommendation.

⑥A person that is issued the recommendation under paragraph (4) must notify the Minister of Finance, within 10 days from the day on which the person is issued the recommendation, of whether or not the person will comply with the recommendation.

⑦A person that has notified the Minister of Finance of compliance with the recommendation pursuant to the provisions of the preceding paragraph must conduct the outward direct investment that is subject to the recommendation in accordance with the recommendation.

⑧Notwithstanding the provisions of paragraph (3) or (5), once a person notifies the Minister of Finance, pursuant to the provisions of paragraph (6), of compliance with a recommendation, the person may undertake the outward direct investment subject to the recommendation even if 20 days have not yet passed since the person was issued the recommendation.

⑨If a person that has been issued a recommendation under paragraph (4) fails to notify the minister as under paragraph (6) or notifies the minister of non-compliance with the recommendation, the Minister of Finance may order the person issued the recommendation to modify the substance of the outward direct investment or discontinue it; provided, however, that the period during which the minister may issue an order to modify or discontinue this is within 20 days, starting from the day on which the minister issues the recommendation under paragraph (4).

⑩Beyond as prescribed in each of the preceding paragraphs, Cabinet Order prescribes the procedures for recommending modifications to the substance of outward direct investment and for recommending the discontinuance of outward direct investment, and also provides for other necessary particulars of these recommendations.

⑪If the obligation to obtain the permission of the Minister of Finance has been imposed pursuant to the provisions of Article 21, paragraph (1) or (2) with respect to outward direct investment that is required to be notified pursuant to the provisions of paragraph (1), the resident that makes that outward direct investment is not required to file the notification, notwithstanding the provisions of paragraph (1); in this case, if a notification under that paragraph has already been filed with respect to that outward direct investment, that notification (limited to a notification concerning outward direct investment that was not actually being made at the time the obligation to obtain permission was imposed pursuant to the provisions of Article 21, paragraph (1) or (2) (excluding outward direct investment for which notice of acceptance of a recommendation to discontinue has been given pursuant to the provisions of paragraph (6) and outward direct investment that has been ordered to be discontinued pursuant to the provisions of paragraph (9))) is deemed to be an application for the permission that it has been made obligatory to obtain pursuant to the provisions of Article 21, paragraph (1) or (2), filed on the date of that notification, and if a recommendation under the provisions of paragraph (4), a notice under the provisions of paragraph (6) (limited to one stating acceptance of a modification to the content), or an order under the provisions of paragraph (9) (limited to one concerning a modification to the content) has been made with respect to the outward direct investment covered by that notification, that recommendation, notice, or order is deemed not to have been made.