APEC DEREGULATION REPORT 2000

Chapter 10 : Deregulation/ Regulatory Review

Objective

APEC Economies will facilitate free and open trade and investment in the Asia-Pacific Region by, inter alia:

(a) Improving the transparency of regulatory regimes; and

(b) Eliminating those distortions arising from domestic regulations that restrict trade or investment and are not necessary to achieve a legitimate objective.

Guidelines

Each APEC economy will:

(a) explore economy-wide processes for the transparent identification and review of those domestic regulations that may cause distortions that restrict trade or investment, ensuring that reviews consider whether identified distortions are necessary to achieve a legitimate objective; and

(b) consider the adoption of regulatory reform programs that seek to reduce the costs of regulation of particular industries or sectors whilst maintaining the achievement of legitimate objectives.

Collective Actions

APEC Economies have agreed to take collective actions to help achieve these goals. These actions are contained in Collective Action Plans (CAPs) which are updated annually. The current CAP relating to deregulation/regulatory review can be found in the Deregulation Collective Action Plan.

APEC Principles to Enhance Competition and Regulatory Reform

The APEC Leader’s Declaration of September 1999 endorsed the following Principles: Non Discrimination

(a) Application of competition and regulatory principles in a manner that does not discriminate between or among economic entities in like circumstances, whether these entities are foreign or domestic.

Comprehensiveness

(b) Broad application of competition and regulatory principles to economic activity including goods and services, and private and public business activities.

(c) The recognition of the competition dimension of policy development and reform which affects the efficient functioning of markets.

(d) The protection of the competitive process and the creation and maintenance of an environment for free and fair competition.

(e) The recognition that competitive markets require a good overall legal framework, clear property rights, and non discriminatory, efficient and effective enforcement.

Transparency

(f) Transparency in policies and rules, and their implementation.

(g) Clear responsibility within domestic administrations for the implementation of the competition and efficiency dimension in the development of policies and rules, and their administration.

Government however will continue to promote deregulation and regulatory reform in order to put the economy on a track to self-sustained recovery, and will move ahead with the formulation of a Three Year Program for the Advancement of Regulatory Reform.

-The economic plan “Ideal Socioeconomy and Policies for Economic Rebirth” will be steadily promoted.

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
*General Policy* *Position*	No further action taken	Deregulation will promote competition and contribute to rectifying the high-cost structure of the Japanese economy. It will also encourage the creation of new business by giving scope for free and creative innovation by companies. Deregulation will also improve market access and will be effective in harmonizing the Japanese economy to international norms. -Regulations should be radically reviewed and abolished, when necessary, regardless of the past process. Economic regulation should be based on the principle of "freedom in principle with regulation only as exception". Social regulations should be reviewed on an ongoing basis because technological advancements have weakened their significance and necessity. The basic idea in social regulation should be to have only the minimum regulation necessary to achieve policy objectives.	The government will continue to promote deregulation and regulatory reform.
*Identification and Review of Proposed Regulations*	No further action taken	On March 23, 1999 the Government of Japan introduced “Public Comment Procedure for Formulating, Amending or Repealing a Regulation” as a Cabinet Decision. In the Procedure, it is decided that administrative organs shall formulate, amend or repeal a regulation after considering comments and information	No further action planned

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		submitted by the public in response to the public notice of a proposed regulation. As a rule, forthcoming regulation shall be reviewed after a certain period of time with a possibility of abolishment. When drafting a law including new systems and related regulations, Ministries and Agencies shall incorporate in their draft a clause requiring a review of relevant regulations after the passage of a specified period of time (hereinafter referred to as “review clause”), except in such cases where a review is deemed regulations. When the conclusion of such reviews is to maintain existing regulations, the responsible Ministry of Agency shall give clear explanations for the need and justification to do so.
*Identification and Review of Existing Regulations*	“The Three-Year Deregulation Program” revised on March 30, 1999 has been further revised on March 31, 2000 to further reflect the requests and opinions from the public (including foreign people) as well as the results of the monitoring by the Regulatory Reform Committee under the Administrative Reform Promotion Headquarters (mandated to monitor	-In addition to actively implementing the measures set forth in the Three-Year Deregulation Program, thorough follow-ups has been conducted with regard to the state of implementation. . Publication of annual report detailing actions taken to deregulate the domestic regulatory regimes -Japan publishes "the White Paper on Deregulation” annually. The White Paper published in August, 1999 reported on the present state of public regulations and deregulation efforts by the Government,	Enhance the transparency of the regulatory system Medium term (2001-2005) The Three-Year Deregulation Program will expire at the end of March 2001. The Government however will continue to promote deregulation and regulatory reform in order to put the economy on a track to self-

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
	implementation of the program and address new deregulation challenges, previously called the Deregulation Committee).	gave an outline of the program, discussed the impact of deregulation on national life, and provided information on its effects.	sustained recovery, and will move ahead with the formulation of a Three Year Program for the Advancement of Regulatory Reform. -The economic plan “Ideal Socioeconomy and Policies for Economic Rebirth” will be steadily promoted.. Publication of annual report detailing actions taken to deregulate the domestic regulatory regimes Short term (2000) The White Paper on Deregulation this year will report on the present state of public regulations and deregulation efforts by the Government, give an outline of the program, discuss the impact of deregulation on national life, and provide information on its effects.
*Reform of Industry/Sector Specific Regulation*		1. Before Deregulatory Action Program (FY 1993-1995) -The Japanese government adopted the	Eliminate domestic regulations that are more restricting than necessary to fulfill a legitimate

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		following measures: Immediate Economic Measures (September 16, 1993), Fundamental Principle of Administrative Reform (February 15, 1994), and Guidelines for Promotion of Deregulation (July 5, 1994). More than 90 percent of the items in these measures have been implemented to date. 2. Deregulation Action Program(decided in March 1995, revised twice in March 1996 and March 1997 by cabinet) -Coverage: 2,823 items in 12 fields, about 99 percent of the items have been implemented. 3. "Economic Measures--toward steady economic recovery"(September 20, 1995 ) -Coverage: 37 items 4. APEC Osaka Meeting "Initial Actions" (November 19, 1995 ) -Coverage: 50 items 5. Formulation of the economic plan “Ideal Socioeconomy and Policies for Economic Rebirth” which includes regulatory reform policies. (adopted by the Cabinet, July 8, 1999) 6. Administrative Reform Committee "Views on Promotion of Deregulation (Part I)" (December 14, 1995)	objective Short/Medium term (2000- 2005) Japan will implement the measures set forth in the “Three-Year Deregulation Program as further revised” of March 2000. -The U.S.-Japan Enhanced Initiative on Deregulation and Competition Policy will continue to be conducted in order to strengthen the dialogue between and reinforce the efforts of their governments under the U.S.- Japan Framework for a New Economic Partnership. -New regulations will be held to the minimum necessary. When instituting new regulatory measures, the regulations will, in principle, be reviewed after a fixed period of time. -Local public bodies will be requested to review their

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		7. Policy Actions on Market Access Issues as concerns Standards, Certification and Others (approved by the Office of Market Access, the Office of Trade and Investment Ombudsman, March 1996, March 1997, March 1998, December 1998 March 2000.) 8. Survey on differentials between prices at home and abroad concerning consumer goods, intermediate materials and services were conducted in 1997. 9. Administrative Reform Committee "Views on Promotion of Deregulation (Part II)" (December 16, 1996) 10. "The Program for Economic Structure Reform"(approved by the Cabinet, December 17, 1996) 11. "Comprehensive program of logistics policies " (approved by the Cabinet, April 1997) 12. "The Action Plan for Economic Structure Reform" (approved by the Cabinet, May 16 1997, revised by the Cabinet on December 24, 1997 and January 29, 1999) 13. "White Papers on Deregulation"(July 1995, July 1996, August 1997, August 1998) -They report on the present state of public	regulations. -Surveys on differential between prices at home and abroad will be continued to annually. The results are expected to contribute to consideration within the government toward deregulation. Short/Medium/Long term (2000-2010) -In order to promote deregulation measures, which contribute to improved market access, active use will be made of complaint handling functions of the Office of Trade and Investment Ombudsman (OTO). -Japan (the Office of Market Access) will take the necessary actions in accordance with “Report of the Comprehensive Review” (the Market Access Ombudsman Council, December 7, 1998), which reviews past complaints handled under the OTO, and offers the Council’s proposals

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
	Transportation -Revision of the Law for the Railway Business Enterprise for abolishing the demand/supply adjustment regulations on passenger railway business, based on the report of the Council for Transport Policy. (Promulgated in May 1999, and implemented in March 2000.) -The demand-supply adjustment regulations on the chartered bus industry were	regulations in Japan and deregulation efforts in Japan by the Government, give an outline of the program discuss the impact of deregulation on national life, and provide information on its effects. 14. Administrative Reform Committee "Final Views"(December 12, 1997) 15. The Deregulation Committee under the Administrative Reform Promotion Headquarters “First Report” (December 15, 1998) 16. "The Three-Year Deregulation Program"(decided by the Cabinet on March 31, 1998, revised on March 30, 1999, further revised on March 31, 2000) -Coverage: 1268 items in 16 fields, including 351 newly added items -A briefing was held for foreign governments and other organizations to outline the program on April 5, 2000. -Revision of the program: The Government has further revised the program, taking into consideration requests and opinions from the public (including foreign people) as well as the results of the monitoring by the Regulatory Reform Committee under the Administrative Reform Promotion Headquarters (mandated to monitor implementation of the program and address new deregulation challenges, previously	regarding market access problems. 1.Transportation -Revision of the Road Transport Law for abolishing the demand/supply adjustment regulations on omnibus and taxi industry, based on the report of the Council for Transportation Policy, with establishing the measure for the preservation of safety, consumer protection etc. (Promulgated in May 2000, to be implemented by FY 2001) -Deregulation of port transport operational requirements from license systems and removal the control over the balance between supply and demand at the 12 major container ports. The Reform Bill is to come force on November - 2. Standards, Certification, Import Processing, and

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
	abolished in February 2000. -Revision of the Road Vehicles Act for expanding the validity of first renewal inspection certificate of trucks under GVW eight tons and rent-a- cars to two years from one year. (Implemented in May 2000.) -Revision of the Civil Aeronautics Law for abolishing the demand/supply adjustment regulations on domestic air transport was implemented in February 2000. -Revision of the MarineTransportation Law for the abolishing the demand supply adjustment regulations on domestic passenger liner service was implemented in October 2000.	called the Deregulation Committee). -Ensuring transparency of the revision process: When a conclusion of the revision process goes against a request or opinion from the public for deregulation, the Government will clarify and explain the necessity and the reason to sustain the regulation concerned. 17. The Regulatory Reform Committee under the Administrative Reform Promotion Headquarters “ Second Report on Regulatory Reform”(December14, 1999.) 1. Housing and Land -Revision of the structure of regulations in the Building Standard Law with a view to shifting from designating specifications regarding materials, construction methods and dimensions to stipulating performance regulations (Implementation as of June 2000). 2. Transportation -Review of the various technical regulations of railways such as the intervals for the periodical technical inspection of rolling stocks. (March 1997) -With respect to international cargo transportation, in order to allow passage of fully-loaded ISO standard 40-feet and 20-	Related Matters -With regard to review of Standards and Conformity Assessment Systems, the proposed amendments of the 11 regulation laws for products and facilities safety were submitted to the Diet and passed in August 1999. Most of them will be entered into force after April 1st, 2000. (Some laws will be entered into force later.) Study the method for establishment of electronic handling of agricultural chemicals registration aiming at submission of the application by utilizing electronic media (FY 1999). 3.Financial Services and Securities -Liberalization of brokerage commission. (Sale price on more than 0.5 billion yen will be liberalized in April 1998. Complete liberalization on October 1, 1999.) 4. Business Services/

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		feet containers, tractors and trailers manufactured to carry these containers have been allowed to apply for the relaxation of regulations.(March 1998) -Extension of the period of validity of completion inspection certificates to nine months from six months. (May 1998) -Raise of the gross shipping tonnage required to board pilots in Kobe harbor from more than 300 GRT to more than 10,000 GRT, coupled with necessary measures to ensure safety in the harbor. (July 1998) -Raise of the gross shipping tonnage required to board pilots in Yokohama and Kawasaki harbor from more than 300 GRT to more than 3,000 GRT except for dangerous goods carriers. (July 1999) -Expansion of the range of cases in which cost account statements can be omitted from trucking rate notifications. (March 1997, March 1999) -Enlargement of the operation zones of trucking businesses to cover entire regional economic blocs. (March 1999) -Revision of the Law for Ship Officers to establish the recognition system for foreign crews to boardJapanese-registered ships, by reorganising certifications issued by the authorities of the Parties to the Standard for Training, Certification and Watching (STCW) Convention, in order to board such ship’s officers on Japanese-registered ships (Promulgated in May 1998,Implemented in	Placement and Supply Service of Personnel Review of regulations on concurrence between employment placement projects and worker dispatching undertakings. Dispatching worker with prearrangement (to be implemented December 1, 2000)

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		May 1999) -Revision of the Law for Ship Officers to establish the recognition system for foreign crews to board Japanese-registered ships, by reorganising certifications issued by the authorities of the Parties to the Standard for Training, Certification and Watching (STCW) Convention, in order to board such ship's officers on Japanese-registered ships. (May 1999.) 3. Standards, Certification, Import Processing and Related Matters -Review of present systems of licensing and labeling regulation relating to the manufacture and importation of cosmetics. (FY 1996) -Expansion of allowable cosmetic ingredients for each cosmetic category in the Comprehensive licensing Standards for Cosmetics by Category. (FY 1996) -The approval application process has been streamlined for "set products", where articles already approved for the company are simply combined, in cases where there is no concern that quality control problems arise. (FY 1996) -The scope of medical devices that do not require partial change approval for cases of dimensional changes or addition of components has been expanded. (FY 1996) -With regards to the soft contact lenses,

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		when the method of use is changed by the addition of an antiseptic solution after approval, its re-examination has not been unnecessary if the way for confirming its effectiveness and safety does not have problem. (FY 1996) -Some of the 11 categories of liquefied petroleum gas equipment and appliances certified by the government were excluded from regulation, others became self- confirmed. (May 1996) -Of the 10 types of gas equipment and apparatus in the 5 categories certified by the government, 3 types in 3 categories were transferred to self-confirmation categories, and 1 category was excluded from regulation. Of the 3 types of gas equipment and appliances in the 3 categories requiring self-confirmation, 1 category was excluded from regulation. (May 1996) -The scope of pharmaceuticals was reviewed, and some of vitamins are allowed to be on the market as foods regardless of the shapes of pharmaceuticals (capsules, tablets, pills). (FY 1996) -Some of herbs treated as pharmaceuticals have been re-categorized into foods. (March 1998) -Permission to use products equivalent to products with Better Living approval mark is government housing construction projects. (FY 1997) -When it poses no problem in terms of

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		product quality, kit products that combine pharmaceutical with medical devices treated as medical (FY 1997) .-Medical supplies that are managed under previously assessed radiation sterilization levels will be allowed to be shipped without further sterilization tests, to the extent that safety can be assured. (FY 1997) -The scope of pharmaceuticals was reviewed, and some of minerals are to be allowed on the markets as foods regardless of the shapes similar to pharmaceuticals (capsules, tablets, pills). (FY 1998) -Japan extended the period of validity for licenses and identification certificate for selling drugs for animals. -Japan abolished the Import Report. (FY 1997) -Japan abolished the Export Inspection Law and Export Commodities Design Law. (April 1997) -Reviewing the scope of products covered by the Household Goods Quality Labeling Law (textile products, electrical appliances, plastics and miscellaneous manufactured goods, and etc.), to expand the flexibility of labeling methods, to implement international harmonization of evaluation methods, and to expand the use of designated terms in English in labeling the composition of fiber of the textile products. (Implementation from October 1997 in order) -The national inspection system of pearls

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
	Business Services/Placement and Supply Service of Personnel (1) Review of regulations on fee-charging employment placement projects The followings have been implementing (Since December 1, 1999): widening the types of trade that can be dealt in the fee-charging employment placement projects; extension of the terms of validity of business licenses; relaxation of the requirements for business licenses; and relaxation of the regulations on commissions charged. (2)Review of regulations on concurrence between employment placement projects and worker dispatching undertakings Relaxation of the requirements for business has been implementing (Since December 1,1999)	for export was abolished in January 1999. 4. System for Corporate Structure Amendments on the Commercial Law establishing the system of Stock Exchange/Transfer have passed to the Diet in August 1999. The amendment was implemented on October 1999. Amendments on the Commercial Lao establishing the system of corporate division has passed to the Diet in May 2000. The amendments will be implemented within one year of promulgation. 5. Financial Services and Securities -Review of the various reports submitted by securities houses. (In January 1996, eight report types were abolished. In April 1996, over 100 types of report were abolished or simplified.) -As to the range of firms eligible to be registered under relaxed standards as special rule issues on the Over-the-Counter market, "R&D-based companies" has been revised to "new venture businesses including service companies" in the registration standards. (Japan Securities Dealers Association rules amended in April 1996) -Legal books mandated under the Securities and Exchange Law may now be maintained

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
	(3)Review of regulations on free employment placement projects Extension of the terms of validity(3 years to 5 years) and relaxation of the requirements of the business license have been implementing (Since December 1, 1999). (4) Review of regulations on worker dispatching undertakings Negative listing in accordance with rational and objective standard has been implementing (Since December 1, 1999). Medical treatment is designated by the Cabinet Order as a prohibited type of dispatched work.	and preserved on electronic media. (April 1996) -Restrictions on the Employee Pension Fund's asset investments, formerly applied to individual trust bank, were abolished. Restrictions are now imposed on the investment of assets as a whole. (April 1996) -Raising the exemption ceiling beyond which approval is required for setting up overseas deposits and trusts by residents in foreign currency denomination for the purpose of portfolio investment. (from 100 million to 200 million). (April 1996) -Deregulation on the account current radically, including introduction of the multi- netting, abolition of limitation by industry and limitation on amount of book entry, and expansion of the scope of the becoming an account current party. (March 1997) -Legal books of Investment trust management company have been made and preserved by the electric media. (August 1997) -Japan lift a ban on issuance of yen bonds by Foreign commercial bank. (April 1997) -Japan abolished the official requirements for the inauguration of a financial organization's branch. (July 1997) -Japan revised of business area regulation about the subsidiary classified by business status. (October 1997) -The Bill for reform of financial system,

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		involving amendments to 24 laws altogether, has passed the Diet and most of which will be implemented from December 1998. The main pillars of this reform are as follows. (1) Expansion in Means of Asset InvestmentThrough amendments to Securities Investment Trust Law, Securities and Exchange Law, Banking Law, etc., the changes will make ways for: (i) Enhancements to investment trusts by way of (a) launching new investment trust products (b) Liberalizing product design (c) Introducing over-the-counter sales of investment trust by banks and other institutions. (ii) Full liberalization of the securities derivatives (iii) Expansion of the definition of securitiesThese will cater for broader range of products available to the investors, such as securities derivatives, but also for over- the-counter sales of investment trust by banks and other institutions. (2) Provision of Attractive Services through Active Intermediations.It is designed to liberalize securities company services and fees, encourage new entries, and provide for reforms designed to make it easier for market participants to receive higher-quality services from financial institutions through: (i) Liberalization of services in terms of (a)

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		diversification of securities company services (b) diversification of asset investment businesses (ii) Price liberalization in the forms of (a) full liberalization of brokerage commissions (brokerage commission that applies to transaction value in excess of \50 million was liberalized in April 1998, and full liberalization will be completed by the end of 1999) (b) reform of the rating organisation system (eliminating the obligation for member insurers of the rating organisation to use premium rates calculated by the rating organisation for fire, automobile, and other insurance products. For example, the full liberalization of fees will make it possible to launch "wrap accounts" which in the US have enabled individual investors to receive asset management services. (iii) Promotion of new entry to the market by way of (a) Shifting from licensing to registration system for securities companies (b) Promotion of cross-sectoral entry (e.g. banks entering into insurance business) (c) Revision of the provision consequent upon the ratification of the WTO Protocol on Financial Services. (3) Create Diverse and Distinctive Market Systems (i) We will provide investors and fund-raisers with a variety of markets and fund-raising channels rather than only the traditional

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		exchange markets through: (ii) Abolishment of requirement of consolidation of order-flow for listed securities (iii) Reviewing the operations of exchange markets (iv) Reinforcement of registered over-the- counter market functions (v) Introduction of proprietary trading systems (PTSs) (4) Build Framework that Enables Users to Make Transactions with ConfidenceWhile adhering to the principle of self- responsibility, we will also enhance disclosure requirements and formulate fair trading rules so as to ensure that markets are fair and reliable. In addition, under the transparent rule based framework, we will ensure the soundness of financial intermediaries, and will also prepare for frameworks for protecting investors and policyholders in the event of failure. These will be achieved through: (i) Enhancing disclosure requirements and frameworks for fair trading by (a) providing for consolidated disclosure covering both parent and subsidiary companies. (b) Formulating and enhancing fair trading rules to prevent unfair trading activities (ii) Ensuring the soundness and fairness of intermediaries and enhance investor protection through (a) enhancing rules

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		governing actions taken by securities companies etc. and (b) reviewing the disclosure systems on financial institutions (c) preparing for subsidiary rules (d) reviewing capital adequacy rations for securities companies (e) creating new securities investor protection fund (f) creating Life Insurance Policy holders Protection Corporation of Japan, and Non- life Insurance Policy-holders Protection Corporation of Japan 6.Business Services/Placement and Supply Service of Personnel (1). Worker Dispatching undertakings Worker dispatching undertakings are governed by the Worker Dispatching Law. A General Worker dispatching undertaking requires permission, while a Specified Worker dispatching undertaking requires notification. The Worker Dispatching Law allows in principle the use of dispatched workers in all occupations, with the exception for (a)port transport services, (b)construction work, (c)guard services, (d) medical treatment,(e)manufacturing for the present.(except a part of services). The law regulates that employers of worker dispatching undertakings and the clients shall take measures to promote the stability of employment and welfare of dispatched workers.

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		(2)Private Employment Placement Projects Private employment placement projects are divided into fee-charging services and free-of-charge services. Both of these may be offered only by those who have obtained the Labour Minister's permission(notification in the case of free-of-charge employment exchange services conducted by schools, etc.). Fee-charging employment placement projects are allowed in all occupations, with the exception for (a)port transport services and (b)construction work. The free-of-charge employment exchange service is not subject to regulation with respect to the types of occupation. The Law regulates the measures for workers' security and smooth labour supply and demand. 7. Energy. The Petroleum Council issued a report which recommended the abolition of regulations concerning supply and demand adjustments in the refining industry during non-crisis periods in June 1998. The revised Gas Utility Industry Law and relevant rules, which include expansion of the scope of liberalization of retail supply and re- examination of regulatory procedures for reducing the gas rate, were entered into force in November 1999. The revised Electricity Utility Industry Law and relevant

*Japan’s Approach to Deregulation/Regulatory Review in 2000*
*Section*	*Improvements Implemented* *Since Last IAP*	*Current Regulatory Review Policies / Arrangements*	*Further Improvements* *Planned*
		rules, which include liberalization of retail supply to extra-high voltage customers and introduction of a new rate system, were entered into force in March 2000. 8. Other -Review of the point system for mixed feed. (Revision of the Customs Tariff Law and other legislation on April 1, 1996) -The Japan Racing Association (JRA), shall, with respect to maintaining the integrity of Horse Racing in Japan, establish the system for the registration as a Race Horse Owner for persons residing abroad, which is applicable to all international horse races of JRA. This system was effective in January 1999.

*Improvements in Japan’s Approach to Deregulation/Regulatory Review since 1996*
*Section*	*Position at Base Year (1996)*	*Cumulative Improvements Implemented to* *Date*
*General Policy* *Position*	Regulations should be radically reviewed and abolished, when necessary, regardless of the past process. Economic regulation should be based on the principle of "freedom in principle with regulation only as exception". Social regulations should be reviewed on an ongoing basis because technological advancements have weakened their significance and necessity. The basic idea in social regulation should be to have only the minimum regulation necessary to achieve policy objectives.	No further action taken
*Identification and Review of* *Proposed Regulations*
*Identification and Review of* *Existing Regulations*
*Reform of Industry/Sector* *Specific Regulation*	The Japanese government has adopted the following measures: Immediate Economic Measures (September 16, 1993), Fundamental Principle of Administrative Reform (February 15, 1994), and Guidelines for Promotion of Deregulation (July 5, 1994). More than 90 percent of the items in these measures have been implemented to date.	No further action taken

APEC Agreements and Declarations

APEC DEREGULATION REPORT 2000 - JAPAN