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3.29. Japan has bound 91.8% of its tariff lines (including partially-bound lines). 175 lines are unbound ; these relate mainly to fisheries (fish, crustaceans, and seaweed), petroleum oils, and wood and articles thereof. There are no instances where MFN applied rates exceed bound rates. (...)

3.41. Japan notified its replies to the WTO questionnaire on import licensing procedures for 2018 and 2017. It also notified a new import licensing requirement for certain mercury and mercury added products; this is to implement the Minamata Convention on Mercury (adopted in October 2013), which aims to protect human health and the environment from anthropogenic emissions and releases of mercury and mercury compounds. (...)

Table 3.4 Goods subject to import licensing under the Import Trade Control Order
Items: Marine animals and their preparations; fish, crustaceans, other aquatics and their preparations; products of animal origin (marine animals, fish, crustaceans and molluscs); seaweeds and their preparations;
HS Nos.: 01.06; 02.08; 02.10; 03.01-03.07; 05.04; 05.06-05.08; 05.11; 12.12; 15.04; 15.06; 15.21; 16.01; 16.02; 16.04; 16.05; 21.06; 23.01; 23.09;
Application: Products shipped from outside Japanese waters;
Rationale: Prevent adverse effects on fishing activities of Japanese fishermen
(...)

Table 3.4 Goods subject to import licensing under the Import Trade Control Order
Items: Wild animals and plants in Appendix I of the CITES; Wild animals and plants in CITES Appendices II and III;
HS Nos.: Not provided; Not provided;
Application: All trading partners; CITES non-members;
Rationale [a]: Compliance with CITES; Compliance with CITES
(...)

[a] (...) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

Table 3.4 Goods subject to import licensing under the Import Trade Control Order
(...)
Items: Substances that deplete the ozone layer, specified hazardous wastes, and waste chemical weapons goods;
HS Nos.: Not provided;
Application: All trading partners, with certain exceptions [b];
Rationale: Compliance with various national laws and international conventions/protocols
(...)

[b] The approval requirements do not apply to members of the Montreal Protocol and to the Chemical Weapons Convention for the goods that they cover, respectively.

3.44. Goods subject to import quotas are set out in the METI's Public Notice No. 170 of 1966, as last amended by Public Notice No. 106 of 2019. Products subject to import quotas are: (i) certain marine products (see below); and (ii) controlled substances listed in Annex A, Group 1 of the Montreal Protocol on Substances that Deplete the Ozone Layer (excluding, inter alia, those imported by persons required to obtain import approval (see above)). With respect to the latter, the list of these controlled substances was adopted at the Montreal Protocol 28th Party Meeting held in October 2016. Hydrofluorocarbons, for which import restrictions came into effect from 1 January 2019, were added as controlled substances.

3.45. Import quotas for marine products are determined on an annual basis, taking into consideration the balance of domestic supply and demand. (...) Quotas are allocated under the following categories:
(...)
• designated corporations. Quotas are allocated to corporations supplying raw materials to the fisheries processing association appointed by the Commissioner of the Fisheries Agency (this association then supplies raw materials to processing industries);
• fishery industries. Quotas are allocated to fisheries associations, approved by the Commissioner of the Fisheries Agency (the purpose is to import fish caught by Japanese vessels operating in foreign Exclusive Economic Zones); and
• foreign fishery development. Quotas are allocated to corporations designated by the fisheries associations or exporters associations which are approved by the foreign government that is developing the utilization of its fisheries resources based on effective and sustainable conservation and management measures.
(...)

Box 3.1 Changes to goods listed in Appended Tables I and II of the Export Trade Control Order, 2017-19
Goods removed from lists: (...)
Goods added to the lists: (...) specified hazardous waste, (...)

3.75. In April 2017, (...) - The Nippon Export and Investment Insurance (NEXI)] NEXI was transformed, under the Act on General Rules for Incorporated Administrative Agencies, and the Trade and Investment Insurance Act, from an incorporated administrative agency into a special stock company wholly owned by the Government of Japan. (...) The stated rationale for this change was to (...) better reflect the intentions of government policies in NEXI's business (these include support for: the expansion of SMEs in the agricultural, forestry and fisheries industries; (...); and securing a stable supply of natural resources and energy). (...) Other developments in terms of insurance products offered are: (...) ; the expansion of the scope of investment and loan insurance for natural resources and energy (aimed at securing natural resources and supporting relevant businesses); and the establishment of loan insurance for green innovation (aimed at supporting environment protection-related businesses).

3.80. (...) Some reforms to the individual income tax were also introduced (...) in 2019, with respect to (...) environmental taxes. (...)