Foreign Exchange and Foreign Trade Act

The purpose of this Act is to ensure that international transactions develop normally and that peace and security are maintained in Japan and the international community through the implementation of the minimum necessary controls and coordination for international transactions, under the basic principle of free engagement in foreign exchange, foreign trade, and other such international transactions; and in doing so, to help achieve balance of payments equilibrium and currency stability and also to contribute to the sound development of the Japanese economy.

This Act also applies to actions that the representative, agent, employee, or other such worker of a corporation whose principal office is in Japan takes in a foreign country concerning the corporation's assets or business. The same applies to actions that a person whose domicile is in Japan or the agent, employee, or other such worker of such a person takes in a foreign country concerning that person's assets or business.

①In this Act and Orders based on this Act, the meanings of the terms stated in the following items are as prescribed in those items:

②If it is not clear whether a person is a resident or a non-resident, the Minister of Finance decides this.

①The Minister of Finance is to set and issue public notice of the reference foreign exchange rates for Japanese currency and arbitrated foreign exchange rates of foreign currencies to Japanese currency.

②Before setting a reference foreign exchange rate for Japanese currency pursuant to the provisions of the preceding paragraph, the Minister of Finance must obtain the approval of the Cabinet.

③The Minister of Finance is to work towards stability in the foreign exchange rates of Japanese currency by taking necessary measures such as buying and selling foreign means of payment.

A payment in currency that is made or received in connection with a transaction or action to which this Act applies must be made or received in the currency designated by the Minister of Finance.

①If there has been a rapid change in international economic conditions and the competent minister finds that there is an urgent need to do so, the competent minister, pursuant to the provisions of Cabinet Order, may order the suspension of transactions, actions, or the making or receiving of payments to which this Act applies, for a period prescribed by Cabinet Order.

②A suspension that the competent minister orders pursuant to the provisions of the preceding paragraph is not to make it impossible to make a payment that had been authorized pursuant to this Act up until the time of the suspension, and any delay in making a payment due to such a suspension is to be limited to within the period prescribed by Cabinet Order.

①If it is particularly necessary to do so in order to maintain peace and security in Japan, it may be decided, in a Cabinet meeting, that responsive measures (meaning measures under Article 16, paragraph (1), Article 21, paragraph (1), Article 23, paragraph (4), Article 24, paragraph (1), Article 25, paragraph (6), Article 48, paragraph (3), and Article 52, which are taken by the competent minister based on a cabinet decision under this paragraph) are to be implemented.

②If the government has implemented the responsive measures referred to in the preceding paragraph based on the cabinet decision referred to in that paragraph, it must refer these measures to the Diet for discussion within 20 days from the day on which it implemented them, and seek Diet approval for having implemented them; provided, however, that if the Diet has been adjourned or the House of Representatives has been dissolved, the government must seek this approval promptly at the first Diet session convoked thereafter.

③If a resolution of disapproval is passed in a case as referred to in the preceding paragraph, the government must terminate the responsive measures promptly.

①If the competent minister finds it to be necessary to do so in order for Japan to faithfully perform its obligations under a treaty or any other international agreement that it has concluded, if the competent minister finds it to be particularly necessary to do so in order for Japan to contribute to international efforts towards international peace, or if a cabinet decision as referred to in Article 10, paragraph (1) is reached, the competent minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to make a payment from Japan to a foreign country to get permission to make that payment, and may make it obligatory for residents seeking to make or receive a payment to or from non-residents to get permission to make or receive that payment, unless the payment in question is one that is being made or received in connection with a transaction or action that it has been made obligatory for persons to get permission or approval for from the same perspective as stated above.

②Beyond as prescribed in the preceding paragraph, if the competent minister finds it to be particularly necessary to do so in order to maintain Japan's balance of payments equilibrium, the competent minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to make a payment from Japan to a foreign country or residents seeking to make a payment to non-residents to get permission to make that payment, unless the payment in question is made in connection with a transaction or action for which it has been made obligatory pursuant to the following Chapter through Chapter VI for persons to get permission or file a notification, or is made in connection with a transaction or action that, pursuant to those Chapters, the relevant authority is permitted to make it obligatory for persons to get permission or approval for.

③Beyond as prescribed in the preceding two paragraphs, if the competent minister finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of this Act or an Order based on this Act, the competent minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to make a payment from Japan to a foreign country to get permission to make that payment, and may make it obligatory for residents seeking to make or receive a payment to or from non-residents to get permission to make or receive that payment, unless the payment in question is made or received in connection with a transaction or action for which it has been made obligatory pursuant to the following Chapter through Chapter VI for persons to get permission or file a notification, or is made or received in connection with a transaction or action that, pursuant to those Chapters, the competent minister is permitted to make it obligatory for persons to get permission or approval for.

④If, pursuant to the provisions of two or more of the preceding three paragraphs, it has been made obligatory for persons to get permission to make or receive a payment that, pursuant to each of those three paragraphs, the competent minister is permitted to make it obligatory for persons to get permission for, a person seeking to make or receive such a payment may file a combined application for the permissions under those two or more paragraphs, pursuant to Cabinet Order. In such a case, the competent minister must decide whether to give permission while taking into consideration the circumstances that have led the minister to make it obligatory for persons to get permission to make or receive the payment under the application.

⑤Except in the cases that Cabinet Order prescribes, if it has been made obligatory for persons to get permission or approval for a transaction or action or to file notification of a transaction or action pursuant to this Act or an Order based on this Act, a person must not make or receive a payment in connection with that transaction or action without getting the permission or approval or without filing the notification.

It is prohibited for a bank or other prescribed financial institution to conduct a funds transfer transaction with a customer that involves a payment being made or received by that customer until after it has confirmed that the customer's making or receiving of the payment does not constitute the making or receiving of a payment stated in one of the following items, or, if the customer's making or receiving of the payment is found to constitute the making or receiving of a payment stated in one of the following items, until after it has confirmed that the requirement prescribed in that item has been met:

①If the Minister of Finance finds that a bank or other prescribed financial institution is conducting or is likely to conduct a funds transfer transaction (excluding those stated in Article 55-9-2, paragraph (2), item (iii)), in violation of the provisions of the preceding Article, involving a payment being made or received by its customer, the minister may order it to take measures to ensure that it properly implements the confirmations referred to in the preceding Article.

②If the Minister of Finance finds it to be necessary to do so when issuing an order to a bank or other prescribed financial institution pursuant to the provisions of the preceding paragraph, the minister may order the bank or other prescribed financial institution to fully or partially suspend its business involving a foreign exchange transaction or restrict the content of its business, until the measures referred to in that paragraph are taken.

The provisions of the preceding two Articles apply mutatis mutandis if a funds transfer service provider carries out a funds transfer transaction involving a payment that is made or received by its customer.

①The provisions of Article 17 and Article 17-2 apply mutatis mutandis where an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving the making or receiving of a payment by its customer; in this case, the phrase "with a customer" in Article 17 is deemed to be replaced with "of a customer", the phrase "funds transfer transaction" in Article 17 is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action", the phrase "funds transfer transaction" in Article 17-2, paragraph (1) is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action", and the phrase "foreign exchange transaction" in paragraph (2) of that Article is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action".

②In the case an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving a payment that is made or received by its customer, the provisions of the preceding three Articles do not apply to a bank or other prescribed financial institution or a funds transfer service provider, if the electronic payment instruments service provider, etc. transfers an electronic payment instrument issued by the bank or other prescribed financial institution or by the funds transfer service provider, or if the electronic payment instruments service provider, etc. conducts one of the actions stated in the right columns of rows 1 through 4 of the table in Article 16-2 involving making or receiving of a payment of its customer (excluding transfer of electronic payment instrument; hereinafter the same applies in Article 18-6, paragraph (2)) upon being entrusted by the bank or any other prescribed financial institution or by the funds transfer service provider.

①When carrying out a funds transfer transaction involving a payment that a customer as stated in one of the following items makes from Japan to a foreign country or a funds transfer transaction involving such a customer making or receiving a payment to or from a non-resident (unless that customer is a non-resident) (excluding a funds transfer transaction that involves the person in question making a small payment or making or receiving a small payment that Cabinet Order prescribes; hereinafter referred to as a "specified funds transfer transaction"), a bank or other prescribed financial institution must verify the information stated in that item (hereinafter referred to as "identifying information") for that customer by having the customer present a driver's license or by any other means that Ministry of Finance Order prescribes (hereinafter referred to as "verifying a person's identity"):

②When a bank or other prescribed financial institution verifies the identity of a customer, if a company's representative is carrying out a specified funds transfer transaction on behalf of that company or in any other such case in which the natural person actually responsible for the specified funds transfer transaction with the bank or other prescribed financial institution is not the customer itself (excluding the cases prescribed in the following paragraph), the bank or other prescribed financial institution must verify the identity of the natural person responsible for the specified funds transfer transaction (referred to as the "representative or other responsible party" in this Article and the following Article), in addition to verifying the identity of the customer.

③If a customer is the national government, a local government, an association or foundation without legal personality, or any other person prescribed by Cabinet Order, the natural person who is actually responsible for conducting a specified funds transfer transaction with the bank or other prescribed financial institution on its behalf is deemed to be the customer, and the provisions of paragraph (1) apply.

④It is prohibited for a customer (including a natural person deemed to be a customer pursuant to the provisions of the preceding paragraph; hereinafter the same applies in this paragraph through Article 22-3) or a representative or other responsible party to disguise their identifying information from the bank or other prescribed financial institution when that bank or other prescribed financial institution is verifying their identity.

If a customer or a representative or other responsible party does not comply with an identity verification when conducting a specified funds transfer transaction, a bank or other prescribed financial institution may refuse to perform its obligation in the specified funds transfer transaction until the customer or the representative or other responsible party complies with this.

①Once a bank or other prescribed financial institution has verified a person's identity, it must immediately prepare a record of the identifying information and other information that Ministry of Finance Order prescribes as information related to the verification of a person's identity (referred to as an "identity verification record" in the following paragraph) by the means prescribed by Ministry of Finance Order.

②A bank or other prescribed financial institution must preserve an identity verification record for seven years after the day on which the specified funds transfer transaction is completed or any other such date prescribed by Ministry of Finance Order.

If the Minister of Finance finds that a bank or other prescribed financial institution has violated the provisions of Article 18, paragraphs (1) through (3) or the provisions of paragraph (1) or (2) of the preceding Article in connection with a specified funds transfer transaction, the Minister may order it to take the necessary measures to rectify the violation.

The provisions of Article 18 through the preceding Article apply mutatis mutandis if a funds transfer service provider conducts a specified funds transfer transaction.

①The provisions of Article 18 through Article 18-4 apply mutatis mutandis where an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving the making or receiving of a payment by its customer; in this case, the phrase "with a customer" in Article 18, paragraph (1) is deemed to be replaced with "of a customer", the phrase "funds transfer transaction involving" in that paragraph is deemed to be replaced with "transfer of electronic payment instruments or any other prescribed action involving", the phrase "specified funds transfer transaction" in that paragraph is deemed to be replaced with "electronic payment instruments transfer transaction", and the phrase "specified funds transfer transaction" in paragraphs (2) and (3) of that Article, Article 18-2, Article 18-3, paragraph (2), and Article 18-4 is deemed to be replaced with "electronic payment instruments transfer transaction".

②In the case an electronic payment instruments service provider, etc. conducts a transfer of electronic payment instruments or any other prescribed action involving a payment that is made or received by its customer, the provisions of Article 18 through the preceding Article do not apply to a bank or other prescribed financial institution or a funds transfer service provider, if the electronic payment instruments service provider, etc. transfers an electronic payment instrument issued by the bank or other prescribed financial institution or by the funds transfer service provider, or if the electronic payment instruments service provider, etc. conducts one of the actions stated in the right columns of rows 1 through 4 of the table in Article 16-2 pertaining to making or receiving of a payment of its customers upon being entrusted by the bank or other prescribed financial institution or by the funds transfer service provider.

①If the Minister of Finance finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of this Act or of an Order based on this Act, the minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to import or export a means of payment (including a voucher or other such object in which a means of payment is entered as stated in Article 6, paragraph (1), item (vii), (c)) or securities, to get permission to do so.

②If the Minister of Finance finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of this Act or of an Order based on this Act or finds it to be particularly necessary to do so in order to maintain a balance of payments equilibrium or currency stability, the minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to import or export precious metals to get permission to do so.

③If a resident or non-resident seeks to import or export a means of payment prescribed in paragraph (1) or a security or precious metal, the resident or non-resident, pursuant to the provisions of Cabinet Order, must file a notification of the substance of the import or export, its timing, and other information that Cabinet Order prescribes with the Minister of Finance, unless that resident or non-resident has gotten the permission of the Minister of Finance to import or export that means of payment, security, or precious metal pursuant to the provisions of an Order based on one of the preceding two paragraphs or in any other case prescribed by Cabinet Order.

The term "capital transaction" means any of the following transactions or actions (excluding an act which falls within the category of inward direct investment or an equivalent action prescribed in Article 26, paragraph (2) and which is conducted by any of the persons stated in the items of paragraph (1) of that Article):

The transactions stated in the following items are deemed to be capital transactions prescribed in those items, and the provisions of this Act (including Orders based on this Act) apply to the transactions.

①On finding that, if residents or non-residents were to unrestrictedly conduct capital transactions (meaning capital transactions as prescribed in Article 20, and excluding those falling under the category of specified capital transactions as prescribed in Article 24, paragraph (1); the same applies in paragraph (1) of the following Article, Article 55-3, and Article 70, paragraph (1)), it would prevent Japan from faithfully performing its obligations under a treaty or other international agreement it has concluded or would cause a situation that would prevent Japan from contributing to international efforts towards international peace, thereby making it difficult to achieve the purpose of this Act, or if a cabinet decision as referred to in Article 10, paragraph (1) has been reached, the Minister of Finance, pursuant to Cabinet Order, may make it obligatory for residents or non-residents seeking to conduct such a capital transaction to get permission to conduct it.

②Beyond as prescribed in the preceding paragraph, on finding that, if residents or non-residents were to unrestrictedly conduct capital transactions as prescribed in that paragraph (excluding those for which accounting is handled in the special international financial transactions account), it would cause one of the following situations to arise, thereby making it difficult to achieve the purpose of this Act, the Minister of Finance, pursuant to Cabinet Order, may make it obligatory for residents or non-residents seeking to conduct such a capital transaction, to get permission to conduct it:

③The term "special international financial transactions account" referred to in the preceding paragraph means an account that a bank or other prescribed financial institution that Cabinet Order specifies establishes with the approval of the Minister of Finance in order to manage its accounting for its investment or procurement of funds in connection with the following transactions and actions (excluding transactions deemed capital transactions as prescribed in the preceding Article) it undertakes in order to allocate deposits that it receives from non-residents (but only corporations established under foreign laws and regulations and any other persons that Cabinet Order prescribes; hereinafter the same applies in this and the following paragraph) and other funds that it procures from non-residents, for use in lending money to non-residents, for use in acquiring securities from non-residents, and for use in other investment in non-residents, separately from its accounting for its investment and procurement of funds in connection with other transactions and actions:

④Cabinet Order provides for transfers of funds between a special international financial transactions account as prescribed in the preceding paragraph (hereinafter referred to as a "special international financial transactions account" in this paragraph and paragraph (2) of the following Article) and other accounts and for other particulars of the accounting in a special international financial transactions account, and also provides for confirmation that the other party to a transaction or action for which the accounting is conducted in a special international financial transactions account is a non-resident and for any other necessary particulars.

⑤If it has been made obligatory for persons to get permission for a capital transaction as prescribed in paragraph (2) pursuant to the provisions of both paragraphs (1) and (2), a person seeking to conduct such a transaction may file a combined application for the permissions under those paragraphs, pursuant to Cabinet Order. In such a case, the Minister of Finance is to decide whether to give permission while also taking into consideration whether the capital transaction under the application would actually cause one of the situations that forms the basis for obliging persons to get permission for that transaction.

⑥If the Minister of Finance, pursuant to paragraph (1) or (2), has made it obligatory to get permission for outward direct investment as prescribed in Article 23, paragraph (2) in connection with which Article 23, paragraph (1) requires a notification to be filed, the minister is to decide whether to give that permission while also taking into consideration whether the outward direct investment under the application for permission would actually give rise to one of the situations stated in the items of paragraph (4) of that Article, in addition to whether it would actually give rise to one of the situations prescribed in paragraph (1) or in one of the items of paragraph (2) that forms the basis for obliging persons to get permission.

①If the Minister of Finance has made it obligatory to get permission pursuant to the provisions of paragraph (1) of the preceding Article, and the minister finds that a person that has conducted a capital transaction which it has been made obligatory to get permission for, without getting that permission, is likely to once again conduct a capital transaction that it has been made obligatory to get permission for pursuant to the provisions of that paragraph without getting that permission, the minister may prohibit the person from fully or partially conducting capital transactions, or, pursuant to the provisions of Cabinet Order, make it obligatory for that person to get permission to conduct capital transactions, but only during a period of up to one year.

②If the Minister of Finance finds that a person that has accounted for a transaction or action other than one that is stated in the items of paragraph (3) of the preceding Article (hereinafter referred to as an "ineligible transaction or action" in this paragraph) by placing it in the special international financial transactions account or a person that has violated the provisions of an Order that is based on paragraph (4) of that Article is likely to once again account for an ineligible transaction or action by placing it in the special international financial transactions account or is likely to once again violate the provisions of that order, the minister may prohibit the person from fully or partially accounting for transactions and actions as stated in the items of paragraph (3) of that Article by placing them in the special international financial transactions account, but only during a period of up to one year.

①When a bank or other prescribed financial institution, a trust company (meaning a trust company as prescribed in Article 2, paragraph (2) of the Trust Business Act (Act No. 154 of 2004) or the foreign trust company as prescribed in paragraph (6) of that Article), a financial instruments business operator (meaning a financial instruments business operator as prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act which is engaged in the Type-I financial instruments business prescribed in Article 28, paragraph (1) of that Act or the Type-II financial instruments business prescribed in paragraph (2) of that Article; the same applies in Article 55-3) or an electronic payment instruments service provider, etc. (referred to as a "bank or any other form of financial enterprise" in the following paragraph and Article 55-9-2, paragraph (1)) enters into a contract or takes any other action prescribed by Cabinet Order that is connected with a capital transaction as prescribed in Article 20 (referred to as "entering into a contract or taking any other prescribed action in connection with a capital transaction" in the following paragraph) with a customer or a person prescribed by Cabinet Order as being equivalent to them (referred to as a "customer or equivalent person" in this paragraph), it must conduct identity verification with regard to the customer or equivalent person.

②The provisions of Article 18, paragraphs (2) through (4) and Articles 18-2 through 18-4 apply mutatis mutandis if a bank or any other form of financial enterprise enters into a contract or takes any other prescribed action in connection with a capital transaction. In such a case, the term "specified funds transfer transaction" in Article 18-3, paragraph (2) is deemed to be replaced with "a contract for a capital transaction prescribed in Article 22-2, paragraph (1)".

The provisions of Article 18, paragraphs (2) through (4), Articles 18-2 through 18-4, and paragraph (1) of the preceding Article apply mutatis mutandis if a person engaging in the currency exchange business (meaning buying and selling foreign currencies or traveler's checks in the course of trade) in Japan (this person is referred to as a "currency exchange operator" in Article 55-9-2, paragraph (1)) exchanges currencies (excluding a small currency exchange prescribed by Cabinet Order) with a customer.

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.

②The term "outward direct investment" as used in this Article means a resident's acquisition of securities issued by a corporation that has been incorporated under foreign laws and regulations or lending of money to such a corporation that is prescribed by Cabinet Order as being done for the purpose of establishing a permanent economic relationship with the corporation, or a resident's payment of funds for the establishment or expansion of a branch office, factory, or other such place of business (hereinafter referred to as a "branch office or other such place of business") in a foreign country.

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.

①On finding that, if residents were to unrestrictedly conduct specified capital transactions (meaning any capital transaction as stated in Article 20, item (ii) (including anything that, pursuant to item (xii) of that Article, Cabinet Order prescribes as a transaction equivalent to what is referred to in item (ii) of that Article) prescribed by Cabinet Order as a transaction or action that a person that imports or exports goods conducts in direct association with the importing or exporting of goods, or prescribed by Cabinet Order as a transaction or action associated with the transfer of a mining right, industrial property right, or other right equivalent thereto, or associated with the establishment of the right to use these rights (excluding anything prescribed by Cabinet Order as a transaction whose purpose is the settlement of a short-term international commercial transaction); the same applies hereinafter), it would prevent Japan from faithfully performing its obligations under a treaty or other international agreement it has concluded or would cause a situation that would prevent Japan from contributing to international efforts towards international peace, thereby making it difficult to achieve the purpose of this Act, or if a cabinet decision as referred to in Article 10, paragraph (1) has been reached, the Minister of Economy, Trade and Industry, pursuant to Cabinet Order, may make it obligatory for residents seeking to conduct such a specified capital transaction to get permission to conduct it.

②Beyond as prescribed in the preceding paragraph, on finding that, if residents were to unrestrictedly conduct specified capital transactions, it would cause one of the situations stated in the items of Article 21, paragraph (2) to arise, thereby making it difficult to achieve the purpose of this Act, the Minister of Economy, Trade and Industry, pursuant to Cabinet Order, may make it obligatory for residents seeking to conduct such a specified capital transaction to get permission to conduct it.

③If it has been made obligatory for persons to get permission for a specified capital transaction pursuant to both paragraph (1) and the preceding paragraph, a person seeking to conduct such a transaction may file a combined application for the permissions under those paragraphs, pursuant to Cabinet Order. In such a case, the Minister of Economy, Trade and Industry is to decide whether to give permission while also taking into consideration whether the specified capital transaction under the application would actually cause one of the situations that forms the basis for the minister's having made it obligatory for persons to get permission for such a transaction.

If the Minister of Economy, Trade and Industry has made it obligatory to get permission pursuant to the provisions of paragraph (1) of the preceding Article, and the minister finds that a person that has conducted a specified capital transaction which it has been made obligatory to get permission for, without getting that permission, is likely to once again conduct a specified capital transaction that it has been made obligatory to get permission for pursuant to the provisions of that paragraph without getting that permission, the minister may prohibit the person from fully or partially conducting specified capital transactions, or, pursuant to the provisions of Cabinet Order, make it obligatory for that person to get permission to conduct specified capital transactions, but only during a period of up to one year.

①A resident or non-resident that intends to conduct a transaction for the purpose of providing, in a specific foreign country (hereinafter referred to as a "specified country"), technology for designing, manufacturing, or using a specified type of goods prescribed by Cabinet Order as being found to interfere with the maintenance of international peace and security (hereinafter referred to as "specified technology"), or a resident that intends to conduct a transaction for the purpose of providing specified technology to a non-resident of a specified country, must obtain the permission of the Minister of Economy, Trade and Industry for that transaction, pursuant to the provisions of Cabinet Order.

②If the Minister of Economy, Trade and Industry finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of the preceding paragraph, the Minister, pursuant to the provisions of Cabinet Order, may make it obligatory for residents or non-residents seeking to conduct a transaction that is meant to provide specified technology in a foreign country other than a specified country, or residents seeking to conduct a transaction that is meant to provide specified technology to a non-resident from a foreign country other than a specified country to get permission for the transaction.

③In the cases stated in the following items, the Minister of Economy, Trade and Industry, pursuant to the provisions of Cabinet Order, may make it obligatory for persons seeking to take the action prescribed in that item to get permission for that action:

④If a resident seeks to conduct a transaction with a non-resident that is connected with the buying and selling, leasing, or donation of goods; that involves the transfer of goods between foreign countries; and that Cabinet Order prescribes as being found to interfere with the maintenance of international peace and security, the resident must get the permission of the Minister of Economy, Trade and Industry for that transaction, pursuant to the provisions of Cabinet Order.

⑤If a resident seeks to conduct a service transaction (meaning a transaction that is meant to provide labor or a benefit; the same applies hereinafter) that constitutes the processing of minerals or anything Cabinet Order prescribes as similar to them (excluding anything that falls under the category of the entry into, renewal, or modification of a technology introduction contract as prescribed in Article 30, paragraph (1)), the resident must get the permission of the competent minister for that transaction, pursuant to Cabinet Order; provided, however, that this does not apply to a service transaction which falls within the category of service transaction for which it has been made obligatory to get the permission of the competent minister, pursuant to the provisions of the following paragraph.

⑥On finding that, if residents were to unrestrictedly conduct service transactions (excluding service transactions linked to specified technology and those falling under the category of the entry into, renewal, or modification of a technology introduction contract as prescribed in Article 30, paragraph (1)) or transactions that are connected with the buying and selling, leasing, or donation of goods and that involve the transfer of goods between foreign countries (excluding those as prescribed in paragraph (4)) (hereinafter referred to as a "service transaction or transaction involving the transfer of goods between foreign countries") with non-residents, it would prevent Japan from faithfully performing its obligations under a treaty or other international agreement it has concluded or would cause a situation that would prevent Japan from contributing to international efforts towards international peace, thereby making it difficult to achieve the purpose of this Act, or if a cabinet decision as referred to in Article 10, paragraph (1) has been reached, the competent minister, pursuant to Cabinet Order, may make it obligatory for a resident seeking to conduct a service transaction or transaction involving the transfer of goods between foreign countries to get permission to conduct it.

①The Minister of Economy, Trade and Industry may prohibit a person that has conducted a transaction prescribed in paragraph (1) of the preceding Article without getting the permission under that paragraph, from conducting transactions that are meant to provide technology for designing, manufacturing, or using goods (hereinafter referred to as "technology for designing, manufacturing, or using goods" in this paragraph and the following paragraph) in a foreign country or to a non-resident; from exporting a document, drawing, or recording medium containing information about technology for designing, manufacturing, or using goods (referred to as "exporting a document, drawing, or recording medium containing technological information" in the following paragraph and Article 70, paragraph (1), item (xix)) in connection with such a transaction; from using telecommunications that are meant to be received in a foreign country to transmit information concerning technology for designing, manufacturing, or using goods (referred to as "transmission of technological information outside Japan" in the following paragraph and that item); or from exporting a specified type of goods involving specified technology, but only during a period of up to three years.

②If persons have been placed under the obligation to get the permission of the Minister of Economy, Trade and Industry pursuant to the provisions of paragraph (2) or (3) of the preceding Article, the Minister of Economy, Trade and Industry may prohibit a person that has undertaken a transaction or action provided for in one of those paragraphs without getting that permission, from conducting a transaction that is meant to provide technology for designing, manufacturing, or using goods in a foreign country or to a non-resident; from exporting a document, drawing, or recording medium containing technological information in connection with such a transaction; from transmitting technological information outside Japan in connection with such a transaction; or from exporting a specified type of goods involving specified technology, but only during a period of up to one year.

③The Minister of Economy, Trade and Industry may prohibit a person that has conducted a transaction prescribed in paragraph (4) of the preceding Article without getting the permission referred to in that paragraph, from conducting a transaction that is connected with the buying and selling, leasing, or donation of goods and that involves the transfer of goods between foreign countries with a non-resident, or from exporting goods, but only during a period of up to three years.

④If the competent minister has made it obligatory to get permission to conduct a service transaction or transaction involving the transfer of goods between foreign countries pursuant to the provisions of paragraph (6) of the preceding Article, and the minister finds that a person that has conducted a service transaction or transaction involving the transfer of goods between foreign countries which it has been made obligatory to get permission for, without getting that permission, is likely to once again conduct a service transaction or transaction involving the transfer of goods between foreign countries that it has been made obligatory to get permission for pursuant to the provisions of that paragraph without getting that permission, the minister may prohibit the person from fully or partially conducting service transactions or transactions involving the transfer of goods between foreign countries, or, pursuant to the provisions of Cabinet Order, make it obligatory for that person to get permission to conduct service transactions or transactions involving the transfer of goods between foreign countries, but only during a period of up to one year.

①The term "foreign investor" means any of the following persons that conducts inward direct investment or an equivalent action stated in the items of the following paragraph or specified acquisition prescribed in paragraph (3):

②The term "inward direct investment or an equivalent action" means one of the following acts:

③The term "specified acquisition" means the acquisition of shares or equity in a company other than a listed or equivalent company from any of the persons stated in the items of paragraph (1).

④The "person closely affiliated" that is provided for in paragraph (2), items (iii) through (v) means a person as stated in one of the items of paragraph (1) and prescribed by Cabinet Order as a person that has a permanent economic relationship with the acquirer of shares, acquirer of voting rights, or consenter which is based on ownership of shares, that has a familial relationship to that person, or that has any other special affiliation equivalent to either of these with that person.

①Before a foreign investor (meaning a foreign investor as provided in paragraph (1) of the preceding Article; hereinafter the same applies in this Article, Article 28, Article 29, paragraphs (1) through (4) and Article 55-5) conducts an inward direct investment or equivalent action (meaning an inward direct investment or equivalent action provided for in paragraph (2) of the preceding Article, and excluding an inward direct investment or equivalent action prescribed by Cabinet Order in consideration of inheritance, bequest, merger of a corporation, or any other circumstances; hereinafter the same applies in this Article, Article 29, paragraphs (1) through (4), Article 55-5, Article 69-2, paragraph (2), and Article 70, paragraph (1)) prescribed by Cabinet Order as being likely to constitute one that necessitates an examination under paragraph (3), the foreign investor, pursuant to the provisions of Cabinet Order, must first file a notification of the business purpose of the inward direct investment or equivalent action, its amount, its timing, and any other information that Cabinet Order prescribes with the Minister of Finance and the competent minister for the business.

②A foreign investor that has filed a notification under the preceding paragraph with regard to inward direct investment or an equivalent action must not undertake the inward direct investment or equivalent action that is subject to that notification until the final day in the 30-day period that starts on the date that the Minister of Finance and the competent minister for the business receive the notification; provided, however, that on finding, before the end of this period, that, in light of its business purpose or any other consideration, the inward direct investment or equivalent action that is subject to that notification does not constitute one necessitating an examination under the following paragraph, the Minister of Finance and the competent minister for the business may shorten this period.

③When a notification under paragraph (1) has been filed, on finding it necessary to examine whether the inward direct investment or equivalent action that is subject to that notification falls under one of the following categories of inward direct investment or equivalent action (hereinafter referred to as "inward direct investment or an equivalent action that is a matter of national security or a similar concern"), the Minister of Finance and the competent minister for the business may extend the period during which the inward direct investment or equivalent action that is subject to that notification must not be undertaken, but only to a period of four months starting on the day on which the notification is received:

④If the Minister of Finance and the competent minister for the business have extended the period during which an inward direct investment or equivalent action must not be undertaken pursuant to the provisions of the preceding paragraph, but they find, as a result of the examination under that paragraph and before the expiration of the extended period, that the inward direct investment or equivalent action stated in the notification under paragraph (1) does not fall within the scope of an inward direct investment or equivalent action that is a matter of national security or a similar concern, they may shorten the extended period.

⑤If the Minister of Finance and the competent minister for the business have extended the period during which an inward direct investment or equivalent action must not be undertaken pursuant to the provisions of paragraph (3), but they find, as a result of the examination under that paragraph, that the inward direct investment or equivalent action stated in the notification under paragraph (1) falls within the scope of an inward direct investment or equivalent action that is a matter of national security or a similar concern, the ministers, pursuant to Cabinet Order, may recommend the person that filed the notification of the inward direct investment or equivalent action to modify the substance of the investment or action or to discontinue it, after hearing the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions; provided, however, that the period during which the ministers may recommend the modification or discontinuance starts on the day on which they receive the notification in question, and ends on the final day of the period extended pursuant to the provisions of paragraph (3) or the following paragraph.

⑥Notwithstanding the provisions of paragraph (3), if the Minister of Finance and the competent minister for the business hear the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions pursuant to the provisions of the preceding paragraph, but the Council informs them that, in light of the nature of the case, it will be difficult for the Council to state its opinions within the four-month period prescribed in paragraph (3), the period during which the inward direct investment or equivalent action must not be conducted as prescribed in that paragraph is five months.

⑦A person that is issued a recommendation under paragraph (5) must notify the Minister of Finance and the competent minister for the business of whether the person will comply with the recommendation, within 10 days from the day on which the person is issued it.

⑧A person that has notified the Minister of Finance and the competent minister for the business of compliance with the recommendation pursuant to the provisions of the preceding paragraph must undertake the inward direct investment or equivalent action that is subject to the recommendation in accordance with the recommendation.

⑨Notwithstanding the provisions of paragraph (3) or (6), a person that has notified the Minister of Finance and the competent minister for the business of compliance with the recommendation pursuant to the provisions of paragraph (7) may undertake the inward direct investment or equivalent action that is subject to the recommendation even if four months (or five months, if the period has been extended pursuant to the provisions of paragraph (6)) have not yet passed since the day on which the person filed the notification concerning that inward direct investment or equivalent action.

⑩If a person that has been issued a recommendation under paragraph (5) fails to notify the Minister of Finance and the competent minister for the business as under paragraph (7) or notifies them of non-compliance with the recommendation, the Minister of Finance and the competent minister for the business may order the person to modify the substance of the inward direct investment or equivalent action or discontinue it; provided, however, that the period during which the ministers may issue an order to modify or discontinue this starts on the day on which they receive the notification in question, and ends on the final day in the period as extended pursuant to paragraph (3) or (6).

⑪If the Minister of Finance and the competent minister for the business find that, because of a change in economic conditions or for any other reasons, the inward direct investment or equivalent action stated in a notification under paragraph (1) has ceased to fall within the scope of an inward direct investment or equivalent action that is a matter of national security or a similar concern, they may rescind all or a part of the recommendation issued to a person that has notified them of compliance with the recommendation to modify the substance of the inward direct investment or equivalent action under paragraph (7), or may rescind all or a part of the order issued to a person that has been ordered to modify the substance of the inward direct investment or equivalent action pursuant to the provisions of the preceding paragraph.

⑫Beyond as provided in paragraphs (5) through (11), Cabinet Order prescribes the procedures for recommending modifications to the content of inward direct investment and equivalent actions and the discontinuance of the same, and provides for other necessary particulars in connection with these recommendations.

⑬Assets and rights that a partner of a specified partnership or similar organization (or a member of an organization similar to a specified partnership; the same applies hereinafter) acquires through an action that is comparable to the inward direct investments and equivalent actions that the specified partnership or similar organization undertakes are deemed to be acquired, owned, or held by the specified partnership or similar organization, and the provisions of the preceding paragraphs and Article 29, paragraphs (1) through (4) apply.

⑭A person (including a corporation or any other organization) not constituting a foreign investor is deemed to be a foreign investor in connection with any action comparable to an inward direct investment or equivalent action which that person conducts on behalf of a foreign investor but not in the name of that foreign investor, and the provisions of paragraphs (1) through (12) and Article 29, paragraphs (1) through (4) apply.

①Notwithstanding the provisions of paragraph (1) of the preceding Article, if a foreign investor (meaning a foreign investor as provided in Article 26, paragraph (1); excluding a foreign investor that has violated this Act, an Order based on this Act, or an administrative disposition based on either of these, or any other foreign investor prescribed by Cabinet Order as one for which there is a high need to carry out an examination under paragraph (3) of the preceding Article; hereinafter the same applies in this Article) seeks to conduct an inward direct investment or equivalent action (meaning an inward direct investment or equivalent action as provided in Article 26, paragraph (2); limited to an action as stated in items (i) through (iv) of that paragraph or item (ix) of that paragraph (limited to those equivalent to the actions stated in items (i) through (iv)); hereinafter the same applies in this Article and Article 29, paragraph (5)) other than one prescribed by Cabinet Order as being highly likely to constitute inward direct investment or an equivalent action that is a matter of national security or a similar concern, the foreign investor is not required to file the notification under paragraph (1) of the preceding Article. In such a case, the foreign investor must comply with the criteria that must be met in order for an inward direct investment or equivalent action not to constitute inward direct investment or an equivalent action that is a matter of national security or a similar concern, which the Minister of Finance and the competent minister for the business establish.

②Before the Minister of Finance and the competent minister for the business propose to establish, revise, or repeal the criteria provided for in the preceding paragraph, they must hear the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions.

③If the Minister of Finance and the competent minister for the business find that a foreign investor that, pursuant to the provisions of paragraph (1), has conducted an inward direct investment or equivalent action without filing a notification under paragraph (1) of the preceding Article, has violated the criteria provided for in paragraph (1), they may issue a recommendation for the foreign investor to take the necessary measures to comply with those criteria.

④If a foreign investor that has been issued a recommendation under the preceding paragraph fails to follow this, the Minister of Finance and the competent minister for the business may order the foreign investor that has been issued the recommendation to take the recommended measures.

⑤Beyond what is provided for in the preceding two paragraphs, Cabinet Order prescribes the procedures for issuing recommendations under paragraph (3), and provides for other necessary particulars in connection with these recommendations.

⑥Assets and rights that a partner of a specified partnership or similar organization acquires through an action that is comparable to the inward direct investments and equivalent actions that the specified partnership or similar organization undertakes are deemed to be acquired, owned, or held by the specified partnership or similar organization, and the provisions of the preceding paragraphs and Article 29, paragraph (5) apply.

⑦A person (including a corporation or any other organization) not constituting a foreign investor is deemed to be a foreign investor in connection with any action comparable to an inward direct investment or equivalent action which that person conducts on behalf of a foreign investor but not in the name of that foreign investor, and the provisions of paragraphs (1) through (5) and Article 29, paragraph (5) apply.

①Before a foreign investor conducts a specified acquisition (meaning a specified acquisition as provided in Article 26, paragraph (3), and excluding a specified acquisition as prescribed by Cabinet Order in consideration of inheritance, bequest, merger of a corporation, or any other circumstances; the same applies hereinafter) prescribed by Cabinet Order as being likely to constitute a specified acquisition that requires the examination under paragraph (3), the foreign investor must first file a notification of the business purpose of the specified acquisition, its amount, its timing, and any other information that Cabinet Order prescribes with the Minister of Finance and the competent minister for the business, pursuant to the provisions of Cabinet Order.

②A foreign investor that has filed a notification under the preceding paragraph with regard to a specified acquisition must not undertake the specified acquisition that is subject to that notification until the final day in the 30-day period that starts on the date that the Minister of Finance and the competent minister for the business receive the notification; provided, however, that on finding, before the end of this period, that, based on the business purpose or any other consideration, the specified acquisition that is subject to that notification does not constitute one necessitating an examination under the following paragraph, the Minister of Finance and the competent minister for the business may shorten this period.

③When a notification under paragraph (1) has been filed, on finding it necessary to examine whether the specified acquisition that is subject to the notification constitutes a specified acquisition that is highly likely to cause a situation that would compromise national security (but only a specified acquisition that is undertaken by a foreign investor from a member state of a multilateral treaty or other international agreement on specified acquisition that Cabinet Order prescribes and to which Japan has acceded (hereinafter referred to as a "treaty or other agreement" in this paragraph), if there is no obligation to remove restrictions on that specified acquisition based on the treaty or other agreement; as well as a specified acquisition that is undertaken by a foreign investor from a state other than the member state of such a treaty or other agreement, if there would be no obligation to remove restrictions on the specified acquisition if the state in question were a member state of the treaty or other agreement; hereinafter referred to as a "specified acquisition that is a matter of national security"), the Minister of Finance and the competent minister for the business may extend the period during which the specified acquisition that is subject to the notification must not be undertaken, but only to a period of four months starting on the day on which the notification is received.

④If the Minister of Finance and the competent minister for the business have extended the period during which a specified acquisition must not be undertaken pursuant to the provisions of the preceding paragraph, but they find, as a result of an examination under that paragraph and before the expiration of the extended period, that the specified acquisition that is subject to the notification under paragraph (1) does not constitute a specified acquisition that is a matter of national security, the ministers may shorten the extended period.

⑤If the Minister of Finance and the competent minister for the business have extended the period during which a specified acquisition must not be undertaken pursuant to the provisions of paragraph (3), but they find, as a result of the examination under that paragraph, that the specified acquisition that is subject to the notification under paragraph (1) constitutes a specified acquisition that is a matter of national security, the ministers, pursuant to the provisions of Cabinet Order, may recommend the person that filed the notification of the specified acquisition to modify the substance of the acquisition or discontinue it, after hearing the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions; provided, however, that the period during which the ministers may recommend the modification or discontinuance starts from the day on which they receive the notification up until the final day in the period as extended pursuant to the provisions of paragraph (3) or the following paragraph.

⑥Notwithstanding the provisions of paragraph (3), if the Minister of Finance and the competent minister for the business hear the opinion of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions pursuant to the preceding paragraph, but the Council makes a filing indicating that, considering the character of the matter in question, it will be difficult for it to state its opinion within the period of four months prescribed in paragraph (3), the period during which a specified acquisition must not be undertaken as prescribed in that paragraph is five months.

⑦The provisions of Article 27, paragraphs (7) through (12) apply mutatis mutandis if the recommendation under paragraph (5) is issued. In this case, Cabinet Order prescribes any necessary technical replacement of terms.

⑧Assets and rights that a partner of a specified partnership or similar organization acquires through an action that is comparable to the specified acquisitions that the specified partnership or similar organization undertakes are deemed to be acquired, owned, or held by the specified partnership or similar organization, and the provisions of the preceding paragraphs and Article 29, paragraphs (1) through (4) apply.

⑨A person (including a corporation or any other organization) not constituting a foreign investor is deemed to be a foreign investor in connection with any action comparable to a specified acquisition which that person conducts on behalf of a foreign investor but not in the name of that foreign investor, and the provisions of paragraphs (1) through (7) and Article 29, paragraphs (1) through (4) apply thereto.

①Notwithstanding the provisions of paragraph (1) of the preceding Article, if a foreign investor (meaning a foreign investor as provided in Article 26, paragraph (1); excluding a foreign investor that has violated this Act, an Order based on this Act, or an administrative disposition based on either of these, or any other foreign investor prescribed by Cabinet Order as one for which there is a high need to carry out an examination under paragraph (3) of the preceding Article; hereinafter the same applies in this Article) seeks to conduct a specified acquisition other than one prescribed by Cabinet Order as being highly likely to constitute a specified acquisition that is a matter of national security, the foreign investor is not required to file the notification under paragraph (1) of the preceding Article. In such a case, the foreign investor must comply with the criteria that must be met in order for a specified acquisition not to constitute a specified acquisition that is a matter of national security, which the Minister of Finance and the competent minister for the business establish.

②Before the Minister of Finance and the competent minister for the business propose the establishment, revision, or repeal of the criteria provided for in the preceding paragraph, they must hear the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions.

③If the Minister of Finance and the competent minister for the business find that a foreign investor that, pursuant to the provisions of paragraph (1), has conducted a specified acquisition without filing a notification under paragraph (1) of the preceding Article, has violated the criteria provided for in paragraph (1), they may issue a recommendation for the foreign investor to take the necessary measures to comply with those criteria.

④If a foreign investor that has been issued a recommendation under the preceding paragraph fails to follow this, the Minister of Finance and the competent minister for the business may order the foreign investor that has been issued the recommendation to take the recommended measures.

⑤Beyond what is provided for in the preceding two paragraphs, Cabinet Order prescribes the procedures for issuing recommendations under paragraph (3), and provides for other necessary particulars in connection with these recommendations.

⑥Assets and rights that a partner of a specified partnership or similar organization acquires through an action that is comparable to the specified acquisitions that the specified partnership or similar organization undertakes are deemed to be acquired, owned, or held by the specified partnership or similar organization, and the provisions of the preceding paragraphs and paragraph (5) of the following Article apply.

⑦A person (including a corporation or any other organization) not constituting a foreign investor is deemed to be a foreign investor in connection with any action comparable to a specified acquisition which that person undertakes on behalf of a foreign investor but not in the name of that foreign investor, and the provisions of paragraphs (1) through (5) and paragraph (5) of the following Article apply.

①In any of the following cases, if the Minister of Finance and the competent minister for the business find that inward direct investment or equivalent action or a specified acquisition falls under inward direct investment or equivalent action that is a matter of national security or a similar concern or a specified acquisition that is a matter of national security, they may, after hearing the opinion of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions, order the foreign investor that has conducted the inward direct investment or equivalent action or specified acquisition, pursuant to the provisions of Cabinet Order, to dispose of all or part of the shares or equity interests acquired through that inward direct investment or equivalent action or specified acquisition, or to take any other necessary measures.

②If a foreign investor that has filed a notification under Article 27, paragraph (1) or Article 28, paragraph (1) has used false information in it and the Minister of Finance and the competent minister for the business find that the inward direct investment or equivalent action or specified acquisition that is subject to that notification constitutes inward direct investment or an equivalent action that is a matter of national security or a similar concern or constitutes a specified acquisition that is a matter of national security, they may order the foreign investor that has conducted the inward direct investment or equivalent action or the specified acquisition to take the necessary measures, pursuant to Cabinet Order and after hearing the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions.

③If a foreign investor that has filed a notification under Article 27, paragraph (1) or Article 28, paragraph (1) fails to follow a recommendation to modify the substance of the inward direct investment or equivalent action or the specified acquisition that is subject to that notification after having filed a notification with the Minister of Finance and the competent minister for the business of compliance with that recommendation pursuant to Article 27, paragraph (7) (including as applied mutatis mutandis pursuant to Article 28, paragraph (7)), or if such a foreign investor violates an order under Article 27, paragraph (10) (including as applied mutatis mutandis pursuant to Article 28, paragraph (7)) to modify the substance of the inward direct investment or equivalent action or the substance of the specified acquisition, the Minister of Finance and the competent minister for the business may order the foreign investor that has carried out the inward direct investment or equivalent action or the specified acquisition to dispose of all or part of the shares or equity acquired through the inward direct investment or equivalent action or through the specified acquisition (if the ministers have recommended modifying the number or amount of shares or the number or amount of units of equity involved in the inward direct investment or equivalent action or in the specified acquisition pursuant to Article 27, paragraph (5) or Article 28, paragraph (5), or if they have ordered a modification to the number or amount of shares or the number or amount of units of equity involved in the inward direct investment or equivalent action or in the specified acquisition pursuant to Article 27, paragraph (10) (including as applied mutatis mutandis pursuant to Article 28, paragraph (7)), they may only order the investor to dispose of the part subject to the modification), or to take other necessary measures, pursuant to Cabinet Order.

④If a foreign investor that has filed a notification under Article 27, paragraph (1) or Article 28, paragraph (1) fails to follow a recommendation to discontinue the inward direct investment or equivalent action or the specified acquisition that is the subject of that notification after having filed a notification with the Minister of Finance and the competent minister for the business of compliance with that recommendation pursuant to Article 27, paragraph (7) (including as applied mutatis mutandis pursuant to Article 28, paragraph (7)), or if such a foreign investor violates an order under Article 27, paragraph (10) (including as applied mutatis mutandis pursuant to Article 28, paragraph (7)) to discontinue the inward direct investment or equivalent action or the specified acquisition, the Minister of Finance and the competent minister for the business may order the foreign investor that has undertaken the inward direct investment or equivalent action or the specified acquisition to dispose of all or part of the shares or equity acquired through the inward direct investment or equivalent action or through the specified acquisition, or to take other necessary measures, pursuant to Cabinet Order.

⑤If, pursuant to the provisions of Article 27-2, paragraph (1) or paragraph (1) of the preceding Article, a foreign investor as provided in Article 27-2, paragraph (1) or paragraph (1) of the preceding Article has carried out an inward direct investment or equivalent action or a specified acquisition without filing a notification under Article 27, paragraph (1) or Article 28, paragraph (1), and has violated an order under Article 27-2, paragraph (4) or paragraph (4) of the preceding Article, and if the Minister of Finance and the competent minister for the business find that the inward direct investment or equivalent action constitutes an inward direct investment or equivalent action that is a matter of national security or a similar concern or that the specified acquisition constitutes a specified acquisition that is a matter of national security, the ministers, pursuant to the provisions of Cabinet Order and after hearing the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions, may order the foreign investor that has carried out the inward direct investment or equivalent action or the specified acquisition to dispose of all or part of the shares or equity acquired through the inward direct investment or equivalent action or through the specified acquisition, or to take any other necessary measures.

⑥The term "prohibition period" referred to in paragraph (1), item (ii) means the period prescribed in the main clause of Article 27, paragraph (2) (or, if the period is extended pursuant to the provisions of paragraph (3) or (6) of that Article or shortened pursuant to the provisions of the proviso to paragraph (2) of that Article or paragraph (4) of that Article, the period so extended or shortened), or the period prescribed in the main clause of Article 28, paragraph (2) (or, if the period is extended pursuant to the provisions of paragraph (3) or (6) of that Article or shortened pursuant to the provisions of the proviso to paragraph (2) of that Article or paragraph (4) of that Article, the period so extended or shortened).

①If a resident intends to conduct the conclusion or renewal of, or modification of the terms of, a contract with a non-resident (including a non-resident's branch office or other such place of business in Japan; hereinafter the same applies in this Article) with regard to the transfer of industrial property rights or any other rights related to technology, the establishment of rights to use these rights, or the guidance on technology for business management conducted by the non-resident (hereinafter referred to as the "entry into, renewal, or modification of a technology introduction contract"), which is prescribed by Cabinet Order as being likely to constitute the entry into, renewal, or modification of a technology introduction contract that requires the examination under paragraph (3), the resident, pursuant to the provisions of Cabinet Order, must first file a notification with the Minister of Finance and the competent minister for the business, for the clauses of the contract and other information that Cabinet Order prescribes with regard to the entry into, renewal, or modification of a technology introduction contract.

②A resident that has filed a notification under the preceding paragraph with regard to the entry into, renewal, or modification of a technology introduction contract must not conduct the entry into, renewal, or modification of a technology introduction contract stated in the notification until 30 days have passed from the day on which the Minister of Finance and the competent minister for the business receive the notification; provided, however, that the Minister of Finance and the competent minister for the business may shorten the 30-day period when they find, before the expiration of the period, that the entry into, renewal, or modification of a technology introduction contract stated in the notification does not constitute entry into, renewal, or modification of a technology introduction contract that requires the examination under the following paragraph, in light of the type of the technology and other circumstances.

③Once a notification under paragraph (1) has been filed, if the Minister of Finance and the competent minister for the business find that it is necessary to examine whether the entry into, renewal, or modification of a technology introduction contract that is the subject of that notification constitutes the entry into, renewal, or modification of a technology introduction contract that is likely to cause one of the following situations (but only the entry into, renewal, or modification of a technology introduction contract with a non-resident from a member state of a multilateral treaty or other international agreement on the entry into, renewal, or modification of a technology introduction contract that Cabinet Order prescribes and to which Japan has acceded (hereinafter referred to as a "treaty or other agreement" in this paragraph), if there is no obligation to remove restrictions on the entry into, renewal, or modification of that technology introduction contract based on the treaty or other agreement; as well as the entry into, renewal, or modification of a technology introduction contract with a non-resident from a state other than the member state of such a treaty or other agreement, if there would be no obligation to remove restrictions on the entry into, renewal, or modification of that technology introduction contract if the state were a member state of the treaty or other agreement (referred to as the "entry into, renewal, or modification of a technology introduction contract that is a matter of national security or a similar concern" in paragraphs (4) and (5))), the Minister of Finance and the competent minister for the business may extend the period in which the entry into, renewal, or modification of a technology introduction contract that is subject to that notification must not be conducted, but only to a period of four months starting on the day on which the notification is received:

④If the Minister of Finance and the competent minister for the business have extended the period during which the entry into, renewal, or modification of a technology introduction contract must not be conducted pursuant to the provisions of the preceding paragraph, and they find, as a result of the examination under that paragraph and before the expiration of the extended period, that the entry into, renewal, or modification of a technology introduction contract stated in the notification made under paragraph (1) does not constitute the entry into, renewal, or modification of a technology introduction contract that is a matter of national security or a similar concern, the ministers may shorten the extended period.

⑤If the Minister of Finance and the competent minister for the business have extended the period during which the entry into, renewal, or modification of a technology introduction contract must not be conducted pursuant to the provisions of paragraph (3), and they find, as a result of the examination under that paragraph, that the entry into, renewal, or modification of a technology introduction contract stated in the notification made under paragraph (1) falls within the category of the entry into, renewal, or modification of a technology introduction contract that is a matter of national security or a similar concern, the ministers, pursuant to the provisions of Cabinet Order and after hearing the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions, may recommend the person that filed the notification of the entry into, renewal, or modification of the technology introduction contract to fully or partially modify the clauses of the contract or to discontinue it; provided, however, that the period during which the ministers may recommend the modification or discontinuance starts from the day on which they receive the notification, and ends on the day on which the period extended under paragraph (3) or the following paragraph expires.

⑥Notwithstanding the provisions of paragraph (3), if the Minister of Finance and the competent minister for the business hear the opinions of the Council on Customs, Tariffs, Foreign Exchange, and Other Transactions, but the Council informs them that, in light of the nature of the case, it would be difficult for the Council to state its opinions within the four-month period prescribed in paragraph (3), the period during which the entry into, renewal, or modification of a technology introduction contract must not be conducted as prescribed in that paragraph is five months.

⑦The provisions of Article 27, paragraphs (7) through (12) apply mutatis mutandis if the recommendation under paragraph (5) is issued. In this case, Cabinet Order prescribes any necessary technical replacement of terms.

⑧The provisions of the preceding paragraphs do not apply to the entry into, renewal, or modification of a technology introduction contract involving technology developed independently by a non-resident's branch office or other such place of business in Japan or any other case of the entry into, renewal, or modification of a technology introduction contract prescribed by Cabinet Order.

Export of goods is permitted under the minimum restrictions as long as it conforms to the purpose of this Act.

①A person seeking to make an export involving a specified type of goods, which has a specified region as the destination and which is prescribed by Cabinet Order as being found to interfere with the maintenance of international peace and security, must get the permission of the Minister of Economy, Trade and Industry, pursuant to the provisions of Cabinet Order.

②If the Minister of Economy, Trade and Industry finds it to be necessary to do so in order to ensure the reliable implementation of the provisions of the preceding paragraph, the Minister, pursuant to the provisions of Cabinet Order, may make it obligatory for persons seeking to export the specified type of goods referred to in that paragraph to a region other than a specified region as referred to in that paragraph to get permission to do so.

③Beyond as prescribed in the preceding two paragraphs, the Minister of Economy, Trade and Industry, pursuant to the provisions of Cabinet Order, may make it obligatory for persons seeking to export a specified type of goods or to export goods to a specified region or for persons seeking to export goods through specified transactions to get approval to do so, to the extent necessary in order to maintain a balance of payments equilibrium, enable the sound development of foreign trade and the national economy, allow Japan to faithfully perform its obligations under a treaty or other international agreement that it has concluded, allow Japan to contribute to international efforts towards international peace, or make it possible to implement the cabinet decision referred to in Article 10, paragraph (1).

If the Minister of Economy, Trade and Industry finds there to be a particularly urgent need to do so, the Minister may designate items or destinations and suspend shipments of goods for a period of not more than one month, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.

In order to enable the sound development of foreign trade and the national economy, allow Japan to faithfully perform its obligations under a treaty or other international agreement that it has concluded, allow Japan to contribute to international efforts for international peace, or make it possible to implement the cabinet decision referred to in Article 10, paragraph (1), persons seeking to import goods are sometimes placed under the obligation to get import approval, pursuant to the provisions of Cabinet Order.