Secondhand Goods Business Act

The purpose of this Act is to prevent theft and other crimes and contribute to the prompt recovery of losses, by imposing necessary regulations etc. on operations relating to the secondhand goods business, in order to prevent the sale and purchase of stolen property etc. and to ensure that it is found promptly.

①In this Act, the term "secondhand goods" means goods that have been used in the past (including collectible works of art, gift certificates, passenger tickets, postage stamps, and other similar vouchers and other items specified by Cabinet Order, but excluding large machinery (meaning ships, aircraft, machine tools, and other similar objects) specified by Cabinet Order; the same applies hereinafter), or, goods that have been purchased, consigned, or traded for use but are no longer used, or goods as described above that have been maintained to some degree.

②In this Act, the term "secondhand goods business" means the businesses listed as follows:

③The term "secondhand goods dealer" as used in this Act, means a person who, after receiving a permit under the provisions of the following Article, operates a business engaging in the activities set forth in item (i) of the preceding paragraph.

④The term "secondhand goods market owner" as used in this Act means a person who, after receiving a permit under the provisions of the following Article, operates the type of business set forth in paragraph (2), item (ii).

⑤The term "secondhand goods auction broker" as used in this Act means a person who operates a secondhand goods auction brokerage.

A person who intends to operate a business set forth in paragraph (2), item (i) or (ii) of the preceding Article must receive a permit from a Prefectural Public Safety Commission (hereinafter referred to as "Public Safety Commission").

A Public Safety Commission must not grant a permit to a person who intends to receive a permit under the provisions of the preceding Article if the person falls under any of the following items:

①A person who intends to receive a permit under the provisions of Article 3 must submit a written application for permission stating the following particulars to the Public Safety Commission that has jurisdiction over the location of the principal place of business of the person or the secondhand goods market. In this case, documents specified by the National Public Safety Commission Rules must be attached to the written permit application.

②When the Public Safety Commission grants a permit under the provisions of Article 3, it must issue a written permit.

③When a permit is not granted under the provisions of Article 3, the Public Safety Commission must notify the applicant to that effect in writing, stating reasons.

④If an issued permit is lost or destroyed, the person who received the permit must promptly notify the Public Safety Commission with jurisdiction over the location of the person's principal place of business or secondhand goods market to that effect, and receive a reissued permit.

①The Public Safety Commission may cancel the permit granted to a person who has received a permit under the provisions of Article 3 if any of the following facts are found to apply to the person:

②The Public Safety Commission may, if the location of the place of business or secondhand goods market of a person who has received a permit under the provisions of Article 3 cannot be ascertained, or if the whereabouts of the person (or in the case of a corporation, the whereabouts of its officers) cannot be ascertained, give public notice of that fact under the provisions of the National Public Safety Commission Rules, and may cancel the permit when no request is received from the person within thirty days after the date of the public notice.

③The provisions of Chapter III of the Administrative Procedure Act (Act No. 88 of 1993) do not apply to dispositions under the provisions of the preceding paragraph.

①A secondhand goods dealer or secondhand goods market owner who intends to make changes to any of the particulars set forth in Article 5, paragraph (1), item (ii), must submit, a written notification stating the particulars specified by the National Public Safety Commission Rules, in advance, to the Public Safety Commission with jurisdiction over the location of the principal place of business or the secondhand goods market (or in the case of a change in the location of the principal place of business or the secondhand goods market beyond the jurisdictional district of the Public Safety Commission, the Public Safety Commission with jurisdiction over the location of the principal place of business or the secondhand goods market after the change).

②A secondhand goods dealer or secondhand goods market owner must submit a written notification to the Public Safety Commission with jurisdiction over the location of the secondhand goods dealer's principal place of business or the secondhand goods market, stating the particulars specified by the National Public Safety Commission Rules, when a change has been made to any of the particulars set forth in each the items of Article 5, paragraph (1) (excluding item (ii))

③A secondhand goods dealer or a secondhand goods market owner who has a place of business or a secondhand goods market within the jurisdictional district of a Public Safety Commission other than the Public Safety Commission prescribed in the preceding two paragraphs may submit a written notification under the preceding two paragraphs via the Public Safety Commission.

④A written notification submitted under the provisions of paragraph (1) or (2) must be accompanied by documents specified by the National Public Safety Commission Rules.

⑤When a written notification is submitted pursuant to the provisions of paragraph (1) or (2), any matters described in the notification that fall under the particulars to be described in the permit must be rewritten.

①If any of the following events arises, a person to whom a permit has been issued must return the permit (or in the case of item (iii), the found or restored permit) without delay to the Public Safety Commission with jurisdiction over the location of the principal place of business or the secondhand goods market of the person:

②When the permit is returned under the provisions of item (i) of the preceding paragraph, the permission under the provisions of Article 3 will cease to be valid.

③When a person to whom a permit has been issued falls under any of the following items, the person prescribed under each of the following items must return the permit without delay to the Public Safety Commission with jurisdiction over the location of the principal place of business or the secondhand goods market of the person:

①The Public Safety Commission is to provide the following particulars regarding secondhand goods dealers that use the method prescribed in Article 5, paragraph (1), item (vi) (referred to as "specified secondhand goods dealers" in Article 12, paragraphs (2) and (3)), for public inspection, by automated public transmission conducted by connecting to an electric telecommunications line:

②In the event of a change in any of the particulars set forth in the items of the preceding paragraph, the Public Safety Commission is to correct the relevant particulars without delay.

A secondhand goods dealer or secondhand goods market owner must not allow any other person to operate a secondhand goods business using its name.

①When a secondhand goods dealer intends to conduct an auction at a place other than the secondhand goods market operated by a secondhand goods market owner, the secondhand goods dealer must notify the Public Safety Commission with jurisdiction over the relevant place, of the time and place of the auction, in advance.

②A secondhand goods dealer who does not have a place of business within the jurisdictional district of the Public Safety Commission prescribed in the preceding paragraph may file a notification under the provisions of the same paragraph via the Public Safety Commission with jurisdiction over the location of the place of business.

③When a secondhand dealer who intends to conduct an auction in paragraph (1) by making particulars relating to the secondhand goods to be sold available for public inspection through an automated public transmission by connecting to an electric telecommunications line, and by using a method of receiving offers for purchase of the secondhand goods through a communication means specified by the National Public Safety Commission Rules, the secondhand goods dealer must, notwithstanding the provisions of the same paragraph, notify the Public Safety Commission with jurisdiction over the location of the place of business that handles the secondhand goods, in advance, concerning the letters, numbers, symbols, or other signs used to identify the source of the automated public transmission relating to the particulars of the secondhand goods, the period during which the auction is to be conducted, and other particulars specified by the National Public Safety Commission Rules.

④The provisions of the preceding three paragraphs do not apply to cases where a person intends to conduct transactions through brokering conducted by a secondhand goods auction broker.

①A secondhand goods auction broker must submit, to the Public Safety Commission with jurisdiction over the location of the office serving as the base of business operations (or in the case of a person who does not have a place of business, domicile or residence of the person; the same applies hereinafter), a written notification stating the following particulars within two weeks from the date of commencement of the business. In this case, the written notification must be accompanied by documents specified by the National Public Safety Commission Rules.

②If the secondhand goods auction brokerage has been abolished or the information set forth in any of the items of the preceding paragraph has changed, the person who submitted a written notification referred to in the same paragraph must submit to the Public Safety Commission (if the office serving as the base of business operations has been relocated outside the jurisdictional district of the Public Safety Commission, the Public Safety Commission with jurisdiction over the location of the office serving as the base of business operations after the relocation) a written notification stating the particulars prescribed in the National Public Safety Commission Rules. In this case, the written notification must be accompanied by documents specified by the National Public Safety Commission Rules.

①A secondhand goods dealer must carry a permit when peddling or carrying out an auction.

②A secondhand goods dealer must, when they have a worker such as an agent, employee (hereinafter referred to collectively as "agent") engage in peddling, have the agent carry a peddler's employee card with them, in the form prescribed in the National Public Safety Commission Rules.

③When peddling, a secondhand goods dealer or its agent, etc. must present a permit or a peddler's employee card prescribed in the preceding paragraph upon the request of the counterparty to the transaction.

①A secondhand goods dealer or a secondhand goods market owner must post a sign in the form prescribed by the National Public Safety Commission Rules in a place easily visible to the public at each of their places of business, temporary stores, or secondhand goods markets.

②Except in the case where the scale of their business is extremely small or in other cases specified by the National Public Safety Commission Rules (excluding the case where the person is a specified secondhand goods dealer), a secondhand goods dealer or a secondhand goods market owner must, as provided for by the National Public Safety Commission Rules, make their name, the name of the Public Safety Commission that granted the permit, and the permit number (referred to as "name, etc." in the following paragraph) available for public inspection using an automated public transmission by connecting an electronic telecommunications line.

③When a specified secondhand goods dealer makes their name, etc. available for public inspection pursuant to the provisions of the preceding paragraph, the specified secondhand goods dealer must make particulars relating to the secondhand goods it handles available for public inspection together with the name, etc.

①A secondhand goods dealer or a secondhand goods market owner must appoint one manager for each place of business or secondhand goods market as the responsible person in charge of properly conducting the business relating to the place of business or the secondhand goods market.

②A person who falls under any of the following items may not become a manager:

③A secondhand goods dealer or a secondhand goods market owner must endeavor to have a manager acquire the knowledge, skills, or experience specified by the National Public Safety Commission Rules as necessary for determining whether the secondhand goods the person handles are illicit goods.

④If a manager has violated any provisions listed laws and regulations relating to the manager's duties, the Public Safety Commission may recommend the secondhand goods dealer or the secondhand goods market owner to dismiss the manager if it finds that person unfit to act as a manager due to the circumstances.

①A secondhand goods dealer must not receive secondhand goods from a person other than a secondhand goods dealer at any place other than the place of business, or the domicile or residence of the counterparty to the transaction, for purchase or exchange, or on consignment for sale or exchange; provided, however, that this does not apply to cases in which the secondhand goods business is being operated at a temporary store, if the dates, times, and location of the secondhand goods business are reported in advance to the Public Safety Commission with jurisdiction over that location.

②A secondhand goods dealer that does not have a place of business within the jurisdictional district of the Public Safety Commission prescribed in the proviso of the preceding paragraph may file a notification under the provisions of the same proviso via the Public Safety Commission with jurisdiction over the location of its place of business.

③In a secondhand goods market, selling, purchasing or exchanging secondhand goods, or accepting secondhand goods on consignment for sale or exchange, is prohibited, except between secondhand goods dealers.

①When a secondhand goods dealer intends to purchase or exchange secondhand goods, or accept secondhand goods on consignment for sale or exchange, the secondhand goods dealer must take one of measures set forth in the in each of the following items in order to confirm the identity of the counterparty:

②Notwithstanding the provisions set forth in the preceding paragraph, the measures prescribed in the same paragraph are not required to be taken in the following cases:

③When a secondhand goods dealer who intends to purchase or exchange secondhand goods, or accept secondhand goods on consignment for sale or exchange, suspects that the secondhand goods may be illicit, the secondhand goods dealer must immediately report that fact to a police officer.

When a secondhand goods dealer receives or delivers secondhand goods for sale, purchase or exchange, or receives secondhand goods on consignment to sell, purchase or exchange, the secondhand goods dealer must enter, for each individual transaction, the following particulars in a register or equivalent document (hereinafter referred to collectively as "register") specified by the National Public Safety Commission Rules, or record them by electronic or magnetic means; provided, however, that this does not apply to items set forth in paragraph (2) of the preceding Article, or cases where the delivered secondhand goods are specified by National Public Safety Commission Rules as secondhand goods for which no entry or record is required.

With regard to secondhand goods to be purchased, sold, or exchanged in a secondhand goods market, a secondhand goods market owner must, for each transaction, enter in the register or record by electronic or magnetic means, the particulars prescribed in items (i) through (iii) of the preceding Article, and, the addresses and names of the parties to the transaction.

①A secondhand goods dealer or a secondhand goods market owner must keep the register. prescribed in the preceding two Articles at the place of business or the secondhand goods market for three years from the date of the last entry, or store the records in electronic or magnetic means prescribed in the preceding two Articles for three years from the date of the recording so that it can be immediately indicated in writing at the place of business or the secondhand goods market.

②When a register, or the electronic or magnetic records prescribed in the preceding two Articles, are damaged, lost, or destroyed, a secondhand goods dealer or a secondhand goods market owner must immediately notify the chief of the police station with jurisdiction over the location of the place of business or secondhand goods market.

①When the Superintendent General, the Chief of Prefectural Police Headquarters, or the Chief of a Police Station (hereinafter referred to collectively as the "Chief of Prefectural Police Headquarters, etc.") finds it necessary to do so, they may issue in writing to a secondhand goods dealer or a secondhand goods market owner, a report of stolen property or property acquired through other acts that constitute property crimes (hereinafter referred to collectively as "stolen property, etc.").

②When a secondhand goods dealer or a secondhand goods market owner receives a stolen property report issued under the provisions of the preceding paragraph, they must record the date on which the report arrived on the document relating to the stolen property report and store it for six months from the date of arrival; provided, however, that the date of arrival need not be written on a report using an electronic data processing system prescribed in Article 6, paragraph (1) of the Act on the Promotion of Administrative Affairs through the Use of Information and Communications Technology (Act No. 151 of 2002) under the provisions of Article 7, paragraph (1) of that Act.

③If a secondhand goods dealer is in possession of the relevant secondhand goods on the day the dealer receives a stolen property report, or receives secondhand goods corresponding to a stolen property report within the period prescribed in the preceding paragraph, the secondhand goods dealer must immediately notify a police officer to that effect.

④When secondhand goods corresponding to a stolen property report appear on the secondhand goods market for trading within the period prescribed in paragraph (2), the secondhand goods market owner must immediately notify a police officer to that effect.

⑤The provisions of Article 7, paragraph (3) of the Act on the Promotion of Administrative Affairs through the Use of Information and Communications Technology do not apply in relation to a stolen property report issued using an electronic data processing system prescribed in Article 6, paragraph (1) of the same Act.

Acts committed by a secondhand goods dealer (limited to individuals, excluding minors) in relation to the secondhand goods business may not be rescinded due to limitations on capacity.

If stolen or lost property is found among secondhand goods (excluding negotiable instruments payable to order, registered negotiable instruments payable to holder (meaning registered negotiable instruments payable to holder as prescribed in Article 520-13 of the Civil Code (Act No. 89 of 1896)), and bearer instruments) purchased or exchanged by a secondhand goods dealer, the victim, or the owner of the lost property may demand that the secondhand goods dealer return the stolen or lost property without compensation, even if the secondhand goods dealer acquired the stolen or lost property in question in good faith on the public market or from a business handling the same kind of goods; provided, however, that this does not apply after one year has passed from the time of the theft or loss.

If there are sufficient reasonable grounds to suspect that secondhand goods purchased or exchanged, or held on consignment for sale or exchange by a secondhand goods dealer are stolen property, etc., the Chief of Prefectural Police Headquarters, etc. may order the secondhand goods dealer to retain the relevant secondhand goods for a period not exceeding thirty days.

When a secondhand goods auction broker intends to receive a request for brokering from a person who intends to sell secondhand goods, the secondhand goods auction broker must endeavor to take measures to confirm the counterparty's identity.

If a secondhand goods auction broker suspects that secondhand goods that the counterparty to the brokering intends to sell is stolen property, etc., the secondhand goods auction broker must immediately report that fact to a police officer.

A secondhand goods auction broker who has arranged brokering for a person who intends to purchase or sell secondhand goods, must endeavor to prepare and keep records in writing or by electronic or magnetic means in accordance with National Public Safety Commission Rules.

①A secondhand goods auction broker may receive Public Safety Commission certification to the effect that the broker's method of conducting business conforms to the standards for methods that contribute to the prevention and prompt detection of the sale and purchase of stolen property, etc., as specified by the National Public Safety Commission.

②A secondhand goods auction broker who has received the certification prescribed in the preceding paragraph may display the fact that they have received the certification prescribed in that paragraph, under the provisions of National Public Safety Commission Rules.

③It is prohibited for any person to display the fact prescribed in that paragraph or display any fact confusingly similar to that fact, except in the case in the preceding paragraph.

④In addition to the matters prescribed in the preceding three paragraphs, application procedures, cancellation of certifications and other necessary particulars in connection with the certifications in paragraph (1) are prescribed by the National Public Safety Commission Rules.

①A person who operates a secondhand goods auction brokerage in a foreign country (limited to brokerages in which a person in Japan is the counterparty to the brokering) may receive Public Safety Commission certification to the effect that their method of conducting business conforms to the standards prescribed in paragraph (1) of the preceding Article, as specified by the National Public Safety Commission Rules.

②The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to persons who have received the certification prescribed in the preceding paragraph, and the provisions of paragraph (4) of the same Article apply mutatis mutandis to the certifications prescribed in the preceding paragraph.

If there is sufficient reasonable grounds to suspect that secondhand goods that a broker's counterparty intends to sell through brokering are stolen property, etc., a Chief of Prefectural Police Headquarters, etc. may order the secondhand goods auction broker to suspend the auction of the relevant secondhand goods.

①When a police official finds it necessary to do so, they may enter a secondhand goods dealer's place of business or temporary store, the place where secondhand goods are kept, a secondhand goods market, or a place of an auction prescribed in Article 10, paragraph (1) (except in cases prescribed in paragraphs (3) and (4) of the same Article) during business hours, inspect secondhand goods and registers (including documents prescribed in Article 18, paragraph (1) in which the records prescribed in the same paragraph are recorded; the same applies in Article 35, item (iii)), and question relevant persons.

②In cases referred to in the preceding paragraph, the police official must carry an identification card and present it to the relevant persons.

③When a Chief of Prefectural Police Headquarters, etc. finds it necessary to do so, they may ask a secondhand goods dealer, secondhand goods market owner, or secondhand goods auction broker to make the necessary report on the stolen property, etc.

④The provisions of the preceding paragraph apply mutatis mutandis to a person who has received the certification prescribed in Article 21-6, paragraph (1).

①If a secondhand goods dealer or a secondhand goods market owner, or their agent, etc., has violated the provisions of this Act, orders based on this Act, or other laws and regulations with regard to the secondhand goods business, and it is recognized that preventing the sale or purchase of the stolen property, etc., or promptly finding the stolen property, etc. is likely to be significantly hindered, the Public Safety Commission with jurisdiction over the location of the principal place of business of the secondhand goods dealer or the secondhand goods market owner, or the location of the secondhand goods market, may instruct the secondhand goods dealer or the secondhand goods market owner to take necessary measures to ensure the proper conduct of the business.

②If a secondhand goods dealer or secondhand goods market owner, having the principal place of business or secondhand goods market in the jurisdictional district of another Public Safety Commission and conducting secondhand goods business in the jurisdictional district of a Public Safety Commission, or their agent, etc., has violated any of the provisions of this Act, orders based on this Act, or other laws and regulations, with regard to its secondhand goods business in the jurisdictional district of the Public Safety Commission, and it is recognized that the prevention of the sale or purchase of stolen property, etc., or the prompt detection of stolen property, etc. is likely to be significantly hindered, then the Public Safety Commission may instruct the secondhand goods dealer or the secondhand goods market owner to take necessary measures to ensure the proper conduct of its business.

①If a secondhand goods dealer or a secondhand goods market owner, or their agent, etc. have violated any of the provisions of this Act, orders based on this Act, or other laws and regulations with regard to the secondhand goods business, and it is recognized that prevention of the sale or purchase of stolen property, etc., or the prompt detection of stolen property, etc. is likely to be significantly hindered, or if a secondhand goods dealer or a secondhand goods market owner has violated any disposition issued based on this Act (including instructions under the provisions of the preceding Article), then the Public Safety Commission with jurisdiction over the location of the principal place of business of the secondhand goods dealer or the secondhand goods market owner, or the location of the secondhand goods market, may cancel the secondhand goods dealer or secondhand goods market owner's permit to engage in the secondhand goods business, or order the secondhand goods dealer or the secondhand goods market owner to suspend the secondhand goods business, either in whole or in part, for a specified period of time not exceeding six months.

②If a secondhand goods dealer or a secondhand goods market owner, or their agent, etc., that has their principal place of business or secondhand goods market in the jurisdiction of another Public Safety Commission and conducts secondhand goods business in the jurisdiction of a Public Safety Commission, has violated any of the provisions of this Act, orders based on this Act, or other laws and regulations, with regard to its secondhand goods business in the jurisdiction of the Public Safety Commission, and it is recognized that preventing the sale or purchase of stolen property, etc., or promptly finding the stolen property, etc. is likely to be significantly hindered, or if a secondhand goods dealer or a secondhand goods market owner has violated a disposition under this Act (including instructions under the provisions of the preceding Article), then the Public Safety Commission may order the secondhand goods dealer or the secondhand goods market owner to suspend their secondhand goods business, either in whole or in part, for a specified period of time not exceeding six months.

①When a Public Safety Commission intends to order the suspension of business of a secondhand goods dealer or a secondhand goods market owner under the provisions of the preceding Article, the Public Safety Commission must conduct a hearing, notwithstanding the classification of procedures for hearing statements of opinions under the provisions of Article 13, paragraph (1) of the Administrative Procedure Act.

②In conducting a hearing relating to a disposition under the provisions of the preceding Article, a notice under the provisions of Article 15, paragraph (1) of the Administrative Procedure Act must be given at least one week prior to the date of the hearing, and public notice must be given regarding the date and location of the hearing.

③The proceedings on the date of the hearing relating to the disposition under the provisions of the preceding Article must be held in public.

In order to contribute to the prevention of the sale or purchase of stolen property, etc., the Public Safety Commission may provide information on stolen property, etc. to persons that request the provision of the information and are specified by the National Public Safety Commission Rules.

①If any event falling under any of the following items arises, the Public Safety Commission must report to the National Public Safety Commission the particulars specified by the National Public Safety Commission Rules. In this case, the National Public Safety Commission is to notify the respective Public Safety Commissions of the reported particulars.

②A Public Safety Commission must notify the Public Safety Commission with jurisdiction over the location of the principal place of business or the secondhand goods market of a secondhand goods dealer or a secondhand goods market owner, of the matters specified by the National Public Safety Commission Rules, if it finds that a secondhand goods dealer or a secondhand goods market owner, or their agent has committed a violation that constitutes grounds for a disposition prescribed in item (iii) of the preceding paragraph, or that a secondhand goods dealer or a secondhand goods market owner has violated a disposition prescribed in that item.

Affairs that fall under the authority of the Hokkaido Public Safety Commission under the provisions of this Act or a Cabinet Order based on this Act may be executed by the District Public Safety Commission under the provisions of the Cabinet Order.

If a Cabinet Order or a Rule of the National Public Safety Commission is enacted, revised, or abolished under the provisions of this Act, necessary transitional measures (including transitional measures concerning penal provisions) may be prescribed by the Cabinet Order or the National Public Safety Commission Rules to the extent considered reasonably necessary for the enactment, revision or abolition.

Beyond those prescribed in this Act, procedures for the implementation of this Act and other matters necessary for the enforcement of this Act are prescribed by the National Public Safety Commission Rules.

A person who falls under any of the following items will be punished by imprisonment for not more than three years or a fine of not more than one million yen:

A person who has violated the provisions of Article 14, paragraph (1) will be punished by imprisonment for not more than one year or a fine of not more than five hundred thousand yen.

A person who falls under any of the following items will be punished by imprisonment for not more than six months or a fine of not more than three hundred thousand yen:

A person who falls under any of the following items will be punished by a fine of not more than two hundred thousand yen:

A person who falls under any of the following items will be punished by a fine of not more than one hundred thousand yen:

A person who has committed a crime under Articles 31 through 33 may be penalized by both imprisonment and a fine under each of these Articles, depending on the circumstances.

A person who has violated the provisions of Article 19, paragraph (3) or (4) by negligence will be punished by penal detention or a petty fine.

If a representative of a corporation, or an agent of a corporation or individual has committed a violation under Articles 31 through 35 in connection with the business or property of the corporation or individual, in addition to the offender being subject to punishment, the corporation or individual is subject to the fine referred to in the relevant Article.

A person who has violated the provisions of Article 8, paragraph (3) will be punished by a civil fine of not more than five hundred thousand yen.