Article 27Notification and Recommendation of Modification Regarding Inward Direct Investment and Equivalent Actions

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.