ROOM DOCUMENT
Organisation de Coopération et de Développement Economiques
Organisation for Economic Co-operation and Development
5-6 July 2001
__________________________________________________________________________________________
English
REGULATORY REFORM
SUBMITTED BY THE JAPANESE GOVERNMENT
The Three-Year Program for Promoting Regulatory Reform
TENTATIVE DOCUMENT AND UNOFFICIAL TRANSLATION
Meeting of the Working Party on Regulatory Management and Reform
Public Management Committee
The PUMA Regulatory Quality Review: Review of the United Kingdom and Poland
5-6 July 2001
OECD Headquarters
(Tentative and Unofficial Translation)
The Three-Year Program for Promoting Regulatory Reform
（Cabinet Decision on March 30, 2001）
I.
Common Items
1.
Objectives of this Program and Basic Policy for the Promotion of Regulatory Reform
(1)
Basic Aims of this Program
The basic aims of this Program are, in response to the structural changes of the economic
environment that Japan has been facing in recent years – such as the globalization of the economy, aging
population with low replacement fertility, the information and communication technology revolution
(IT Revolution), and the aggravation of environmental problems – to advance social and economic
structural reform in Japan. And, through these reform, it aims to promote systematic, active and
fundamental regulatory reform in each area of Japanese government administration from such
perspectives as  achieving sustainable economic growth through revitalization of the economy, 
achieving a highly transparent, fair, and credible economy,  realizing a lifestyle secured various
choices, and  realizing an internationally open economy.
(2)
Basic Nature of this Program
In order to achieve the above-mentioned basic aims, this Program presents and reforms the
basic direction for the middle to long-term issues of reform and reform itself not only for the individual
regulations in each field of government administration but also including the various related systems. At
the same time, as immediate reform issues, this Program reconfirms the formal opinions expressed by
the Regulatory Reform Committee of the Headquarters for Promoting Administrative Reform, the
Action Plan for Economic Structural Reform (Cabinet Decision on December 1, 2000), the e-Japan
2
Please note that this document is tentative and that the translation unofficial
Priority Strategy (the IT Strategy Headquarters’ Decision on March 29, 2001), and other regulatory
reform items that have become clear from domestic and overseas opinions and requests, by being
addressed over the three-year period from fiscal year 2001 through 2003 and to be steadily
implemented.
(3)
Main Point of the Reform
In addressing the promotion of regulatory reform in each area, particular emphasis shall be
placed on the following perspectives, based on dealing with the middle to long-term reform issues
presented in section 3, below.

Realizing a society wherein enterprises and individuals can freely manifest their creativity and
personality under various choices, and are rewarded for their creativity and diligence through
accepting the challenges of competition and various potential.

Revitalizing medical, social welfare, employment, labor, education and other social systems
through a reconstruction of systems in response to structural environmental changes.

Promoting the formation of a cyclical society that places a small burden on the environment to
facilitate sustainable development.

Upgrading the business environment to promote pioneering and creative economic activities
by enterprises as well as the creation of new industries and employment opportunities.

Upgrading the business environment to improve international competitiveness by rectifying
the high-cost structure, etc.

Reforming institutions and systems to construct a society where the information and
knowledge from the IT Revolution will become the source of value added.

Making the transition to a society of ex post facto monitoring and redemption, thoroughly
based on the principles of transparent rules and self-responsibility, by switching to
government administration via ex post facto monitoring of compliance, etc.
3
Please note that this document is tentative and that the translation unofficial
(4)
Reform Policy

Perspectives for Regulatory Review, Etc.
The reviews of specific regulatory and systems shall promote the abolition, relaxation, and
revised implementation of regulations in accordance with the following perspectives. Particular
emphasis shall be placed on accelerating the efforts to address each individual item, considering the
urgency of responding to the changes in the environment surrounding Japan.
(i)
Regulations shall be rigorously reviewed based on the beliefs that economic activities should
be free in principle, and that social regulation should be restricted to the minimum necessary
level.
(ii)
The regulatory approach shall move toward a relaxed regulatory system through transitions
from licensing systems to approval systems and from approval systems to notification
systems.
(iii)
Regulatory methods shall be rationalized, for example, through a transition to private-sector’s
inspection.
(iv)
The international harmonization of regulatory contents and procedures shall be promoted.
(v)
The contents of regulations shall be clarified and simplified, the standards for government
approvals shall be clarified, and the applications and other filing documents shall be
simplified.
(vi)
The regulatory approach shall move toward ex post facto procedures by making the transition
from a prior notification system to an ex post facto notification system, etc.
(vii)
Regulatory-related procedures beginning such as screening and processing applications for
government approvals shall be expedited.
(viii)
The procedures for the formation of regulations shall be transparent.
(ix)
Social equality shall be secured through the rectification of irrational regulations.

Measures along with the Promotion of Regulatory Reform
4
Please note that this document is tentative and that the translation unofficial
The reviews of regulations and systems shall be accompanied by the implementation of
measures to (i) secure the social stability (safety net) that is a prerequisite to a dynamic competitive
society, (ii) rationalize and improve the efficiency of the public sector from the perspective of
maintaining and boosting economic vitality, (iii) eliminate the anxieties that citizens feel regarding
business products and services and expel their doubts, especially through the establishment of the
enterprise self-responsibility system from the perspective of securing citizens’ safety and via thorough
information disclosure, and (iv) ensure the effectiveness of necessary regulations in social context.

Linkages with the Positive Development of Competition Policy and other Related Reforms
In addition, the government shall also work to establish linkages with reforms in the various
fields related with regulatory reform, as follows.
(i)
Positive development of competition policy to better manifest the market mechanism.
(ii)
Rigorous review of the establishment of new rules and related legal systems in conjunction
with the transition from a government administration based on prior regulation to one based on
ex post facto monitoring of compliance.
(iii)
Linkages with reforms in fields aside from regulatory reform, including government
administration organizational structure, government budgets, tax systems, subsidies,
government corporations, public service corporations, and local governments
2.
Fundamental Regulatory Reform Efforts by New Deliberative Council
The new deliberative council to be established within the Cabinet Office (hereinafter referred
to as “the new council”), which was addressed in the Administrative Reform Guidelines (Cabinet
Decision on December 1, 2000), are to promote the individual reform items raised within this Program
through conducting deliberations on promoting regulatory reform from a wide-ranging perspective
including socioeconomic structural reform, and monitoring the implementation of this Program. In
addition this Program is to be revised based on the conclusions of the deliberations conducted by the
new council.
3.
Addressing Middle to Long-term Reform Issues, and Immediate Reforms
5
Please note that this document is tentative and that the translation unofficial
The government shall work toward strategic and radical reform from the following
perspectives, in fields that require a fundamental and wide-ranging approach covering not only public
regulations but also entire systems such as IT, medical care, social welfare, employment and labor,
education and the environment. The individual measures presented in chapters II and III of this program
shall be implemented as immediate measures and primarily focus on the reform of public regulations, as
the first step for this type of middle- to long-term issues.
Additionally, the new council shall conduct deliberations on these types of middle to long-term
reform issues.
 IT
To promote the formation of a high-level information and communication network society, the
government shall strive to form environment securing fair competitive conditions whereby the private
sector can manifest ingenuity via free competition.

Medical Care
To respond to the changes in citizens’ needs and the environment surrounding medical practice,
the government shall promote competition among medical institutions, giving due consideration to the
unique characteristics of medical care, and strive to improve the quality and efficiency of medical
services.

Social Welfare
To respond to aging population with low replacement fertility, the government shall promote
the market entry of diverse businesses as well as an expansion in users’ choice through market
competition.

Employment and Labor
6
Please note that this document is tentative and that the translation unofficial
To respond to structural socioeconomic changes and the diversification of working styles and
working ethics, the government shall work toward a transition from prior regulation to ex post facto
monitoring of the employment system accompanied by revitalizing the labor market and upgrading the
safety net, giving due consideration to securing appropriate working conditions and stable employment
opportunities, promoting the employment of the elderly and disabled, and eliminating sexual
discrimination and age restrictions in recruitment, and strive to promote human resource development
that can respond to the changes in the socioeconomic structure.
 Education
Accurately grasping ongoing trends such as aging population with low replacement fertility,
the advance of IT, and globalization, the government shall realize an educational system wherein
children, pupils and students can receive diverse education in accordance with their particular abilities
and aptitudes.
 Environment
The government shall promote the realization of a cyclical society that places a small load on
the environment heightening citizens’ awareness of the environment, via the creation of a framework
ensuring positive information disclosure by businesses, and the incorporation into the market economy
of a framework of bearing the costs of environment preservation measures.
4.
Systematic Approach Accompanying the Promotion of Regulatory Reform
(1)
Strict Enforcement and Public Education Regarding the Administrative Procedures Law
The government shall strictly comply with the Administrative Procedures Law (Law No. 88 of
1993), and shall strive to secure transparency and clarity in administrative guidances and actions such as
licenses, permissions and approvals, and in administrative guidance. The government shall also strive to
educate the nationals and businesses regarding the Administrative Procedures Law to encourage its full
utilization.
Furthermore, in view of promoting greater transparency and predictability in regulatory
processes, the government shall strive to specify fixed periods for the granting of such licenses,
7
Please note that this document is tentative and that the translation unofficial
permissions and approvals for all items for which standard processing periods have not yet been set, and
to rapidly set review standards for all items for which such criteria have not yet been established.
(2)
Smooth Enforcement of the Law Concerning the Disclosure of Information Retained by
Administrative Agencies
The government shall strive to smoothly enforce the Law Concerning the Disclosure of
Information Retained by Administrative Agencies (Law No. 42 of 1999), which will come into full
effect from April 1, 2001, to disclose publicly government regulatory information, to ensure
transparency regarding regulatory effects and burdens, and to fulfill the government’s responsibility to
explain regulations to the citizenry.
(3)
Public Comment Procedures for Formulating, Amending and Repealing Regulations
In order to improve transparency and secure fairness in the decision-making process related to
formulating, amending and repealing regulations, based on the Public Comment Procedures for
Formulating, Amending and Repealing Regulations (Cabinet Decision on March 23, 1999), the
government shall continue to widely publicize to the general public and businesses proposed statements
and other information in the process of formulating Cabinet Orders and Ministerial Ordinances related
to formulating, amending and repealing regulations, and consider relevant comments and information in
making final decisions.
Additionally, to ensure that these procedures are properly implemented in the formulation,
amendment and abolition of regulations, the Ministry of Public Management, Home Affairs, Posts and
Telecommunications (MPHPT) shall follow-up the status of the implementation of these procedures and
publicly release its findings.
(4)
Prior Confirmation Procedures on the Application of Laws and Regulations by Government
Agencies(so-called “No Action Letter”)
Regarding specific actions related to private sector enterprise activities, the agency with
jurisdiction over the regulations in question shall determine in advance whether the actions fall under the
regulations in the specified laws and regulations, respond to the enterprise, and then publish the response,
in certain fields. Based on “Introduction of Prior Confirmation Procedures on the Application of Laws
8
Please note that this document is tentative and that the translation unofficial
and Regulations by Administrative Agencies” (Cabinet Decision on March 27, 2001), the government
shall steadily introduce procedures in certain fields from FY2001.
(5)
Evaluation of Regulatory Reform and Regulatory Systems

Upgrading Basic Surveys and Researches on Regulatory Systems
To contribute to the promotion of regulatory reform, the MPHPT shall upgrade its basic
surveys and researches, such as grasping the overall image of Japanese regulatory systems.

Implementation and Publication of Quantitative Analyses on the Effects of Regulatory Reform
To deepen citizens’ interest and understanding regarding regulatory reform, the Cabinet Office
shall positively implement and publicly release quantitative analyses on the economic effects of
regulatory reform including the effect in increasing demand, in raising productivity, in creating
employment, and in decreasing prices.

Implementation and Publication of Regulation Cost-Effect Analyses
To contribute to the review of the current regulatory system, individual government ministries
and agencies shall analyze and grasp cost and effect on the regulations in their respective administrative
field, such as the burden placed on the public from these regulations. When new regulations are to be
enacted, the ministries and agencies shall actively provide and publicize information on the costs and
effects of the concerned regulations and examine the establishment of the system to fulfill their duty to
explain to the citizenry.

Utilization of Policy Evaluation Functions
In the evaluation of regulatory systems, the policy evaluation function of the MPHPT and of
the other ministries and agencies shall be actively utilized as well as the administration monitoring
function of the MPHPT.
(6)
Examination of Forthcoming Regulations
In principle, all new regulations shall be reviewed with a possibility of abolition after a certain
period of time. When drafting a law including establishment of new systems and related regulations, the
individual ministries and agencies shall incorporate in the draft a clause requiring a review of said
9
Please note that this document is tentative and that the translation unofficial
regulations after the passage of a specified period of time (hereinafter referred to as a “review clause”),
except in cases such a review is deemed inappropriate in view of the objectives of the regulations. When
the conclusion of such a review is to maintain the existing regulations, the ministry or agency concerned
shall provide clear explanations regarding the necessity and justification for this.
The minister’s secretariats and other competent coordination sections of the individual
ministries and agencies shall scrutinize forthcoming regulations under the basic principle that
establishment of new regulations should be restricted to the minimum necessary level. To these ends,
when establishing new regulations, the individual ministries and agencies shall conduct examinations on
the necessity of the regulations, their expected effects, and their projected costs including the burden
placed on the public. The conclusions of these examinations shall then be published in an easily
understandable manner promptly after each ordinary Diet session, together with a list of the bills with
review clauses and the results of the reviews made pursuant to the review clauses.
Moreover, the Cabinet Legislation Bureau, the Administrative Management Bureau of the
MPHPT, and the Budget Bureau of the Ministry of Finance shall implement rigorous examinations of all
forthcoming regulations under their respective administrative fields.
Additionally, from the perspective of restricting the formulation of new regulations, the
Administrative Management Bureau of the MPHPT and the Budget Bureau of the Ministry of Finance
shall, whenever necessary, file their respective opinions in the public comment procedures for
formulating, amending and repealing regulations for conducted by the individual ministries and
agencies.
10
Please note that this document is tentative and that the translation unofficial
5.
Revision and Follow-up of Reform Plans
(1)
Steady Implementation of Existing Plans
The government shall work to steadily implement all measures for items, stipulated by the
Three-Year Program for Promoting Deregulation (revised version; Cabinet Decision on March 31,
2000) and other existing regulatory reform plans, that have not been implemented within fiscal year
2000 yet (including measures of which contents are presently still under consideration) and that are not
addressed in this Program.
(2)
Revisions to this Program
This Program shall be revised each year based on the conclusions of the deliberations
conducted by the new councils and on domestic and overseas opinions and requests.
Among the domestic and overseas opinions and requests, the individual ministries and
agencies shall clarify the necessity and basis for those items for which the present systems and
applications will be maintained, and the Cabinet Office shall summarize and publicize these
clarifications each year.
(3)
Follow-up of this Program
The Cabinet Office shall actively promote the measures stipulated in this Program, conduct
follow-ups on the status of the implementation of these measures, report its findings to the new councils,
and publicly release these findings.
The Cabinet Office shall also conduct follow-ups on the implementation status of
field-specific measures stipulated in Attachment 4 of the Three-Year Program for Promoting Regulatory
Reform (revised version) that have not been implemented within fiscal year 2000 yet (including
measures whose contents are presently under consideration) and are not addressed as individual measure
items in this Program.
(4)
Expediting Conclusions by Councils, etc.
The conclusions of councils deliberating matters relevant to the measures shall be expedited
among the individual measures presented in chapters II and III of this program that require the
11
Please note that this document is tentative and that the translation unofficial
conclusions of councils, as a rule said conclusions shall be reached by the end of September 2001. In
cases
councils are unable to submit their conclusions by that date, they shall release reports
summarizing the progress of their deliberations to date and, in principle, arrive at their final conclusions
regarding these items by the end of February 2002.
(5)
Utilizing the Office of the Trade and Investment Ombudsman (OTO)
The functions of the Office of the Trade and Investment Ombudsman (OTO) shall be actively
utilized to promote regulatory reform measures that contribute to improving market access.
(6)
Collection and Analyses of Regulatory Information from Foreign Countries
To contribute to further progress of regulatory reform in Japan, the individual ministries and
agencies shall continuously collect information regarding regulatory administration in their respective
fields from nations worldwide by utilizing the Internet and other means, and actively release this
information to the public. Ministry of Foreign Affairs shall make effort to collect and analyze
wide-ranging information regarding regulations in each nation as part of their regular duties of overseas
missions.
6.
Revision of the Basic Civil and Criminal Law Systems, etc.
(1)
Revision of the Basic Civil and Criminal Law Systems
The basic civil and criminal law systems that govern the economic activities of citizens and
enterprises shall be rigorously reviewed to respond to the changes in the socioeconomic structure and
the transition to a society of ex post facto monitoring. The legal terminological and notational systems
shall also be revised so that they become appropriate for the new era and understandable for the citizenry.
These legal revisions shall be completed within fiscal year 2005 as a target date.
(2)
Transition to a System Emphasizing Ex Post Facto Monitoring of Compliance, and Promoting
Judicial Reforms
Along with the transition from a government administration based on prior regulation to one
based on ex post facto monitoring of compliance, the government shall strive to slim down the systems
pertaining to direct government regulations such as licensing, permissions and approvals, and to move
12
Please note that this document is tentative and that the translation unofficial
toward a system emphasizing the enactment of explicit and clear rules and strict surveillance to ensure
compliance with these rules.
In conjunction with these efforts, as a greater emphasis is being placed on the proper role of the
judiciary, the government shall promote true and effective judicial reform based on the deliberations of
the Judicial System Reform Council.
7.
Request for an Active Approach by Local Government Bodies, etc.
From the perspective of advancing regulatory reform at both the national and local levels, the
government shall respect the perspectives of local governments, and request local government bodies to
actively address Regulatory Reform based on the purport of this Program. Whenever necessary, the
national government shall examine and review regulations that are independently enforced by local
governments, as well as those based on national laws and ordinances.
II.
Cross-Sectoral Measures
1.
The IT Sector
(1)
Basic Policy for the IT Sector
The progress of IT, especially the spread of the Internet and the technological advances in
mobile telecommunications, is facilitating the distribution of information and the flow of capital
transcending the restrictions of space and time, and giving rise to a “high-level information and
telecommunications network society” that is greatly changing the nature and structure of Japan’s society
and economy.
To promote the progress of IT, the division of roles whereby the private sector manifests its
ingenuity through competition and the government works to upgrade the environment to secure fair
competitive conditions first needs to be clarified. Then, the government shall strive to improve the
information and telecommunications network infrastructure, and to promote regulatory reform in an
integrated manner to stimulate the utilization of the information and communications network
infrastructure, for example, by promoting the expansion of contents and fostering the growth of entities
that support the progress of IT. These works shall be aimed not merely at replacing existing methods
13
Please note that this document is tentative and that the translation unofficial
with electronic methods. Rather, regulatory reform shall be advanced in a manner that will change the
nature of the existing systems themselves so that they can respond to the progress of IT and the changes
in socioeconomic conditions. To ensure that all citizens can utilize high-level information and
telecommunications networks freely, easily and without concern, due considerations shall be given to
securing network safety and reliability, and to rectifying the so-called digital divide.
Moreover, the government needs to actively promote the formation of a high-level information
and telecommunications network society by implementing measures on an intensive and urgent basis so
that Japan will become an advanced global IT nation within five years, and to accelerate regulatory
reform from this perspective.
(2)
IT Sector Priority Items

Promoting Improvement of the Information and Telecommunications Network Infrastructure
To promote the improvement of the information and telecommunications network
infrastructure, the government shall promote the smooth laying of lines by telecommunications carriers
and cable companies, as well as the utilization of existing infrastructure (fiber optics, etc.).

Establishing a New Competition Policy for the Telecommunications Sector
The government shall promote improvements of the business environment to realize fair and
effective competition among telecommunications carriers by introducing regulations governing
dominant firms with conspicuously high market shares, expanding asymmetric regulations, and
thoroughly opening local telecommunications networks.

Establishing E-commerce Rules and Making Improvements to the Operating Environment
To stimulate E-commerce and other network utilization, the government shall implement the
transition to rules based on an ex post facto monitoring of compliance approach, secure the
confidentiality of personal information and otherwise eliminate the obstacles to participation in
E-commerce and the use of electronic media, examine new systems to respond to the fusion of
telecommunications and broadcasting, and otherwise promote improvements of the operating
environment. At the same time, the government shall rigorously review the legal structure of enterprises
and devise measures to foster bodies that provide user services.
14
Please note that this document is tentative and that the translation unofficial

Promoting the Adoption of IT for Government Administration
The government shall work toward the establishment of electronic and paperless application,
notification and other procedures and other uses of information and telecommunications technologies,
and also review existing systems and practices to improve the quality of government services, simplify
and improve the efficiency of government administration, and lessen the burdens placed on citizens and
enterprises.

Strengthening Human Resource Development
The government shall expand and reinforce the IT education system, foster and secure IT
engineers and researchers by enhancing the mobility of the international IT labor market and other
means, and otherwise devise measures to strengthen the development of personnel who can serve as the
foundation for supporting the progress of IT.
2.
The Environmental Sector
(1)
Basic Policy for the Environmental Sector
The implementation of regulatory reform in the environmental sector shall go beyond the
simple rationalization of individual regulatory systems to incorporate examinations from the
perspectives of making every possible effort to decrease the burden placed on the global environment
with its limited resources and establishing new rules to facilitate sustainable development.
To these ends, the individual ministries and agencies shall actively examine economic
measures such as the incorporation of a framework to bear the costs of environmental preservation into
the market economy, further expand their information disclosure and establish frameworks to promote
voluntary information disclosure by businesses, heighten citizens’ awareness of the environment,
upgrade environmental assessments, examine the means of environmental considerations in
higher-order plans and government policies, expand the introduction of renewable energy, and promote
the formation of a cyclical society that places a small load on the environment. Additionally, from the
perspective of revitalizing the economy through fostering environmental businesses, regulations shall
also be examined from the perspectives of increasing the technological strengths of Japanese industry
and boosting its international competitiveness. These examinations shall also incorporate the
15
Please note that this document is tentative and that the translation unofficial
perspective of realizing a fair and equitable society via regulatory reform.
(2)
Environmental Sector Priority Items

Setting New Rules to Facilitate Sustainable Development
Because of the lack of existing rules, various problems have arisen regarding the pollution of
urban land, including the failure to address contamination and difficulties with land transactions. The
government shall examine effective systems to address these problems, including legal codification, for
the establishment of decontamination standards and a framework for the division of the cost burdens
entailed in decontamination works.

Improving the Various Systems to Promote the Formation of a Cyclical Society
The government shall examine the definition and categorization of waste products from the
perspectives of promoting the three Rs (reduce, re-use, and recycle), clarifying disposal responsibilities,
and promoting the appropriate and efficient disposal of waste products. At the same time, the
government shall examine comprehensive measures to increase the recycling ratio of waste containers
and packaging materials.

Reducing the Environmental Load via Appropriate Waste Disposal
The government shall examine means to further expand information disclosure regarding
waste disposal businesses to improve the system for the appropriate disposal of waste products
discarded by medical institutions and facilitate the selection of superior waste disposal businesses, strive
to further diminish the load placed on the environment via the appropriate disposal of waste products,
and otherwise promote the formation of a cyclical society.

Promoting the Introduction of Recyclable Energy, Etc.
The government shall examine measures to support more effectively and efficiently the further
introduction of solar power generation, wind power generation, biomass energy and other forms of
renewable energy as well as fuel cells.
3.
Competition Policy
(1)
Basic Approach to Competition Policy
16
Please note that this document is tentative and that the translation unofficial
To revitalize the Japanese economy and realize an affluent society, the government must
review the existing socioeconomic structure and actively promote free and fair market competition. To
these ends, the government shall clarify the application of the Anti-Monopoly Law and strengthen its
enforcement, abolish regulations that restrict the freedom of consumer choices and ingenuity of
businesses and thus promote competition policy.
(2)
Enforcement and Administrative Processes Policy
To promote free and fair competition, the government shall strive to actively develop
competition policy together with regulatory reform, continue to reinforce the Fair Trade Commission’s
investigative functions, and otherwise strengthen the enforcement of the Anti-Monopoly Law, and
severely and vigorously address pricing and bidding cartels and other violations of the Anti-Monopoly
Law including the filing of criminal indictments.
Additionally, in order to secure a fair competition market order after regulatory reform, the
government shall severely and actively address illegal dumping that is disadvantageous to small and
medium enterprises, abuse of market dominance, and other unfair trading practices. Regarding illegal
dumping cases in particular,  the government shall as promptly as possible respond to cases that were
reported, including dispatching personnel from the concerned ministries and agencies to firms that
engage in such practices;  in cases where large corporations engage in illegal dumping and when firms
repeatedly engage in illegal dumping, and in cases which are deemed to have a large effect on other sales
firms, the government shall conduct individual investigations regarding the influence on the business
activities of other sales firms in the same field, and take harsh action when problems are confirmed; and
 when necessary the government shall implement follow-up investigations on pricing trends
thereafter.
Additionally, in accordance with the purport of the “Anti-Monopoly Law Guidelines regarding
Administrative Guidance,” the concerned ministries and agencies shall conduct necessary consultations
in advance with the Fair Trade Commission to ensure that government regulations are not replaced by
anti-competitive administrative guidance after regulatory reform. As for the issue of so-called
non-governmental restrictions in the private sector, the Fair Trade Commission shall severely address
violations of the Anti-Monopoly Law in accordance with the provisions of this law, conduct fact-finding
17
Please note that this document is tentative and that the translation unofficial
surveys on such restrictions and seek to correct private-sector practices that restrict competition. In cases
where such business practices are employed based on administrative guidance that restricts competition,
the Fair Trade Commission and the concerned ministries and agencies shall promptly undertake a
review of such guidance. Conversely, when there is no type of government intervention, the concerned
ministries and agencies shall widely publicize their non-intervention and strive to clarify the sources of
the restrictions.
(3)
Competition Policy Priority Items

Strengthening Enforcement of the Anti-Monopoly Law
The government shall examine policy measures to effectively expose pernicious violations of
the Anti-Monopoly Law, as well as the introduction of legal measures, including new systems to address
the entities placing orders when bidding cartels are involved.

Promoting Competition in Regulated Industries
In introducing a competitive framework for electric power, gas, telecommunications,
transportation and other regulated industries to which the entry of new enterprises has traditionally been
restricted, the Fair Trade Commission shall, as necessary for the execution of its proper duties, examine
the competitive conditions in these industries from the perspective of promoting competition, and
recommend policies when it is deemed that there is leeway for improvement. Additionally, the Fair
Trade Commission and the other competent authorities shall examine the required liaison framework for
the new establishment and subsequent revision of a system governing competition in these regulated
industries, including the setting of guidelines.

Reviewing Regulations on Business Concentration in General
The present regulations based on business size, regulations on joint stock corporations,
restrictions on the number of shares held in large-scale corporations, and restrictions on the number of
shares held in financial corporations shall be reviewed to ensure that business activities are not
unnecessarily restricted by regulations to prevent excessive concentration of business dominance.

Reviewing Regulations on Premiums
18
Please note that this document is tentative and that the translation unofficial
The government shall review the regulations on premiums to clarify the operating standards
for premiums that are provided via Internet websites and otherwise in accordance with changes in
transaction formats, economic conditions, and consumers’ purchasing behavior.
4.
Standards and Certification
(1)
Basic Policy for Standards and Certification
Amid the present globalization of economic activities, standards, specifications, inspections
and certification (hereinafter referred to as “standards and certification systems”) have a great influence
on corporate and consumer activities by raising costs and narrowing the range of available choices.
Accordingly, in setting and administering standards and certification systems, it is important to
minimize their influence on such activities, provided that this does not undermine the original intent of
these systems to safeguard the livelihood, health, and assets of the citizenry or become an obstacle to
achieving the fundamental objectives of various government policies. Thus, when revising standards
and certification systems, the government shall conduct rigorous reviews to determine whether they
truly need to be maintained as frameworks for government intervention, and even when such
frameworks are deemed necessary, the direction of the revisions shall be toward restricting government
intervention to the minimum necessary level, as described below. Consequently, the government shall
promote a transition toward a system based on self-confirmation and self-maintenance by businesses, as
well as the international harmonization of standards, the adoption of performance-based standards, and
the elimination of duplicate inspections.
① From the perspectives of enhancing administrative efficiency and reducing business costs, the
government shall prepare ex post facto measures and systems for self-confirmation and
self-maintenance in accordance with the particular characteristics of each field. Even in cases
where it is inappropriate to uniformly apply self-confirmation and self-maintenance, the
government shall examine an incentive system whereby self-confirmation would be permitted for
businesses with outstanding past records.
② To ensure that standards contents can respond flexibly to technological innovations, the
government shall examine changing, in principle, all standards based on actual product
19
Please note that this document is tentative and that the translation unofficial
specifications to performance-based standards.
③ From the perspective of reducing the burdens placed on businesses and consumers, the government
shall strive to harmonize Japanese standards with international standards, and to promote the
acceptance of overseas data and mutual international recognition.
④ The government shall review the requirements for the designation of proxy inspection/certification
organs so that inspections required under multiple laws can be implemented by single
inspection/certification organs.
⑤ Non-profit organizations conducting inspection and certification works under government contract
or referrals shall implement these works in accordance with the purport of the Administrative
Reform Guidelines, and once future action plans based on the Administrative Reform Guidelines
have been formulated, the government shall devise measures governing their works based on these
action plans.
(2)
Measures Based on the Above Policy

Cross-Sectoral Reviews
Once this Program is adopted, the individual ministries and agencies shall promptly conduct
reviews, based on the Three-Year Program for Promoting Deregulation as Revised, of the standards and
certification systems under their jurisdictions and publicly release the findings of these reviews. Based
on these findings, the individual ministries and agencies shall then conduct further reviews in
accordance with the policies set forth in the Attachment.

Individual Item Measures
In addition to the cross-sectoral reviews stipulated above, the individual ministries and
agencies shall also formulate measures as stipulated in the Attachment 1 in accordance with the purport
of the Report on Regulatory Reform by the Regulatory Reform Committee of the Headquarters for
Promoting Administrative Reform.
Attachment: Review of Standards and Certification Systems
20
Please note that this document is tentative and that the translation unofficial
1.
Review of the Range of Government Involvement in Standards and Certification Systems
The policy objectives of standards and certification systems, which include securing safety and
improving the efficiency of transactions, cannot be achieved without government intervention
considering their socioeconomic import when accidents and disasters occur. Nevertheless, along with
technological innovations, an increasing number of these objectives can now be achieved through the
independent efforts of businesses without reliance on government standards and certification systems.
Accordingly, the government shall conduct rigorous reviews of individual standards and
certification systems to determine whether they truly need to be maintained as frameworks for
government intervention.
2.
Transition toward a System Based on Self-Confirmation and Self-Maintenance
Even when continued government intervention is deemed necessary based on the
above-mentioned reviews, direct government inspections shall be limited to areas where the potential
influence (dangers, etc.) from violations is so great that it cannot possibly be ignored and where, given
the likelihood of violations, the consciousness of the citizenry dictates that violations should be directly
addressed by the competent government organs. In such cases, the government shall devise the
following measures.

Self-Confirmation and Self-Maintenance
Government works shall be restricted to the establishment of standards and the surveillance of
compliance from the perspectives of enhancing administrative efficiency and reducing business costs.
The government shall prepare ex post facto measures in accordance with the particular characteristics of
each field and then examine the introduction of systems for self-confirmation and self-maintenance. In
this process, the government shall emphasizes the concept of self-responsibility; to place the
responsibility on the product manufacturer is the most certain and effective way to deter the occurrence
of product defects.
Specifically, inspection and certification works currently conducted by the government for
which the level of risk is relatively low compared with the benefits from legal protection, and for which
the probability of injury or damage from violations is also low, shall be devolved to self-confirmation
21
Please note that this document is tentative and that the translation unofficial
and self-maintenance by individual enterprises.
However, the adoption of such self-confirmation and self-maintenance assumes sufficient
information disclosure to consumers and other market participants, so the government and businesses
are expected to undertake efforts to promote greater information disclosure.

Third-Party Certification
Even in cases when it may not be appropriate to fully devolve standards and certifications
systems to self-confirmation and self-maintenance works, the response should not be to immediately
institute compulsory government inspection. Rather, full consideration should be given to the possibility
of introducing a framework maintaining self-confirmation and self-maintenance as the primary basis,
with provisions for compulsory inspection by fair and neutral third-party bodies (third-party
certification) in light of international rules.
Specifically, in order to ensure the safety of the public in instances where a certain degree of
danger exists and there is a certain probability of injury or damage occurring, frameworks shall be
devised not only for self-confirmation and self-maintenance but also incorporating the involvement of
third-party bodies. Even in such instances, however, these frameworks should still maintain
self-confirmation and self-maintenance as the primary basis, with compulsory third-party inspection
adopted as a supplementary measure.

Introducing a Incentive System
For the cases discussed in  and  above, when it is deemed inappropriate to uniformly adopt
self-confirmation, self-maintenance and third-party certification for all businesses, the government shall
actively examine the introduction of incentive systems whereby self-confirmation, self-maintenance
and third-party certification will be permitted on a selective basis for businesses with outstanding past
records.

Government Proxy Organs (Designated Inspection/Certification Organs)
Even for inspection and certification works that are presently being conducted by government
proxy organs (designated inspection/certification organs), following the above-specified reviews and
examinations, the government shall conduct additional examinations toward their future transfer to
22
Please note that this document is tentative and that the translation unofficial
self-confirmation, self-maintenance and third-party certification in light of technological progress and
other factors.
Also, even in cases when continued examination by designated inspection/certification organs
is deemed necessary, in principle the eligibility requirements for designation shall not be restricted to
non-profit organizations but shall also permit the designation of private corporations that have sufficient
capabilities and can maintain fairness and neutrality. Moreover, from the perspective of encouraging
competition among inspection/certification organs, the government shall permit the designation of
multiple inspection/certification organs.
23
Please note that this document is tentative and that the translation unofficial
3.
Advancing International Harmonization, Introducing Performance-Based Standards,
and Eliminating Duplicate Inspections

Advancing International Harmonization
In areas where international standards already exist, the government shall strive to harmonize
Japanese standards with these existing international standards after verifying the appropriateness of
these standards. In areas where international standards do not yet exist, the government shall strive to
promote the proposal or adoption of international standards based on Japanese standards, as well as the
acceptance of overseas data and mutual international recognition.

Introducing Performance-Based Standards
To ensure that standards contents can respond flexibly to technological innovations, the
government shall examine changing, in principle, all standards based on actual product specifications to
performance-based standards.

Eliminating Duplicate Inspections
In cases where the implementation of inspections requires inspections based on multiple
standards, the government shall implement measures to eliminate the duplication of similar inspection
items and otherwise reduce the burden placed on businesses.
*Note: The above reviews shall be conducted in accordance with Chapter 2 Section 14-1 of the Report on
Regulatory Reform by the Regulatory Reform Committee of the Headquarters for Promoting Administrative
Reform.
5.
Qualification Systems
(1)
Basic Policy for Qualification Systems

For qualification systems that create functional monopolies, the government shall strive to
reinvigorate competition in each occupational field by promoting the elimination of qualification
systems, the acceptance of cross-entry among occupational fields, reviews of the range of occupational
works, the elimination of compensation regulations, and by reviewing the number of candidates
certified when qualification examinations are administered, and thus strive to improve the quality of
24
Please note that this document is tentative and that the translation unofficial
services provided, reduce the prices charged for services, and improve citizen convenience.
In cases where the establishment of and membership in certified personnel associations is
compulsory by law, from the perspective of securing free and effective competition, the government
shall review the self-regulation of such associations, and from the perspective of securing the
transparency of such associations, the government shall strengthen its surveillance functions over such
associations including promoting the public disclosure of information regarding their works and
finances, the appointment of non-certified persons as association directors, and the public disclosure of
their disciplinary actions. Additionally, from the perspective of revitalizing competition among certified
persons, the government shall promote the elimination of association regulations that stipulate the
compensation of certified persons.

For qualification systems for the compulsory placement of certified personnel, the government
shall promote the elimination of qualification systems, the relaxation of regulations stipulating required
placement units, expansion of the range of occupational works and the use of outside contractors to
reduce the costs incurred by businesses in the compulsory placement of certified personnel, and thus
relax the restrictions and conditions for placement at work sites.
Additionally, considering that greater importance is attached internationally on concept based
management systems for achieving the policy objectives of quality assurance, preservation of the
environment, labor safety and hygiene and other qualification systems and that such systems are
spreading to Japan and many other countries, the government shall promptly conduct specific reviews
toward formulating measures to relax or eliminate the compulsory placement of certified personnel in
cases where it is deemed appropriate to replace this method by such management systems.

For both types of qualification systems, the government shall continuously review their
contents and requirements, and ensure that the concerned qualification systems can effectively and
efficiently achieve their original policy goals. Additionally, for both types of qualification systems, the
government shall review the educational and prior work experience qualification requirements and the
qualification examination items, publicly disclose the examination passage criteria and otherwise aim to
rationally reduce, to the greatest possible extent, the burden on candidates seeking qualification.
25
Please note that this document is tentative and that the translation unofficial

The works and operations of non-profit organizations for conferring qualifications under
government contract or referral shall be implemented in accordance with the purport of the
Administrative Reform Guidelines, and once future action plans based on the Administrative Reform
Guidelines have been formulated, the government shall devise measures governing their works based on
these action plans.
(2)
Measures Based on the Above Policy

Cross-Sectoral Reviews
(i)
For qualification systems that create functional monopolies, the individual ministries and
agencies shall continue to conduct reviews, based on the Three-Year Program for Promoting
Regulatory Reform as Revised, of the qualification systems under their jurisdictions, and shall
then conduct further reviews in accordance with the policies set forth in Attachment 1.
(ii)
For qualification systems for the compulsory placement of certified personnel, once this
Program is adopted, the individual ministries and agencies shall promptly conduct reviews,
based on the Three-Year Program for Promoting Regulatory Reform as Revised, of the
qualifications systems under their jurisdictions and publicly release the findings of these
reviews. Based on these findings, the individual ministries and agencies shall then conduct
further reviews in accordance with the policies set forth in Attachment 2, and these reviews
shall include comprehensive and rational comparisons of the social benefits and other merits
of these systems with the economic costs and other demerits.

Individual Item Measures
In addition to the cross-sectoral reviews stipulated above, the individual ministries and
agencies shall also formulate measures as stipulated in Attachment 2 in accordance with the purport of
the Report on Regulatory Reform by the Regulatory Reform Committee of the Headquarters for
Promoting Administrative Reform.
Attachment 1: Review of Qualification Systems that Create Functional Monopolies
To provide greater convenience to the public and to stimulate competition in the services to be
rendered, the individual ministries and agencies shall review, in accordance with the standards and
26
Please note that this document is tentative and that the translation unofficial
viewpoints enumerated below, those qualification systems that create functional monopolies falling
under their respective jurisdictions. These reviews shall (a) cover the current regulations relating to
functional monopolies, eligibility requirements, and occupational boundaries, and (b) examine the
possibility of abolishing functional monopolies, and replacing them by requirements for the compulsory
placement of certified personnel or the monopoly use of titles only.
(1)
Excessively narrow definitions of occupational boundaries shall be reviewed, and the
possibility of allowing cross-entry among occupational fields shall be examined.
With regard to services that could be properly handled by those qualified in adjoining
professions etc., the possibility of allowing other professions to enter into such services shall be
examined as a means of lowering the occupational barriers.
(2)
-
The following qualifications shall be reviewed with the possibility of abolishing them.
Qualifications for services that do not require expert knowledge and could be conducted by
non-certified personnel.
-
Qualifications that can be acquired without examinations or any other specific requirements.
-
Qualifications with an extremely high success ratio in passing examinations or completing courses.
-
Qualifications with a very small number of newly certified personnel each year because, for
example, their original social mission has already been fulfilled.
-
Qualifications which in principle require successful passage of examinations, but which are in
reality almost exclusively granted through other means as permitted under special provisions
(3)
Qualifications for which similar private sector qualifications already exist.
Examinations shall be administered for all qualifications for which the successful passage of
qualification examinations is required by law.
(4)
Absent of clear and rational justifications, all eligibility rules for taking qualification
examinations shall be abolished.
(5)
Previous work experience requirements for taking examinations and compulsory training or
course work after successful passage of examinations shall be reviewed so that these
27
Please note that this document is tentative and that the translation unofficial
requirements do not function as barriers to entry without justifiable reasons.
(6)
In cases where physical or other disabilities are presently grounds for ineligibility for
qualification, the justification for this shall be examined and measures shall be taken as
necessary.
(7)
Standards for special provisions pertaining to the eligibility for taking examinations and the
acquisition of qualifications shall be clarified and published.
(8)
Restrictions on the number of successful candidates shall be reviewed to ensure that this
practice does not function as a barrier to entry.
(9)
The possibility of integrating various related and similar qualifications shall be examined. The
combination of examinations and courses, and the provision of exemptions from certain
examinations and course work requirements shall also be examined.
(10)
Standards for judging success or failure in examinations, allotment of marks, and model
answers shall be published. Unsuccessful candidates shall be notified of the individual results
of their examinations, and the announcement of examination results shall be expedited as far
as practicable.
(11)
Various means of facilitating the acquisition of qualifications shall be examined, including the
following.
-
Introducing an examination system whereby candidates can be credited for successfully passing
individual examination subjects.
-
Exempting candidates from taking examinations on subjects for which they have previously
achieved passing scores.
-
Promoting the publication of examination questions and allowing examinees to take home the
examination questions.
(12)
The grounds for computing examination fees shall be examined.
(13)
From the viewpoint of maintaining fair and effective competition, provisions and practices
concerning compulsory registration and membership in certified personnel associations shall
28
Please note that this document is tentative and that the translation unofficial
be reviewed.
(14)
From the viewpoint of maintaining fair and effective competition and rationality, regulations
stipulating the compensation of certified personnel shall be reviewed.
(15)
From the viewpoint of maintaining fair and effective competition and rationality, restrictions
on advertising shall be reviewed.
(16)
The justifications for certification validity periods and compulsory participation in periodic
training courses shall be reviewed.
(17)
The government shall examine the establishment of a system for the legal incorporation of
certified personnel, as appropriate, from the perspectives of responding to the diverse,
complex and sophisticated needs for services, ensuring the uninterrupted and stable provision
of services by certified persons, and reinforcing the ability of certified persons to indemnify
loss and injury.
(18)
To ensure appropriate responses to globalization and increasingly complex and diversified
social and economic conditions, the number of qualified persons shall be increased to facilitate
the provision of high-level services utilizing professional expertise.
* Note: The above reviews shall be undertaken in accordance with Chapter 2 Section 2-3 of the First Report on
Deregulation by the Regulatory Reform Committee of the Headquarters for Promoting Administrative Reform,
Chapter 3 Section 2-1 of the Second Report on Regulatory Reform by the Regulatory Reform Committee of the
Headquarters for Promoting Administrative Reform, and Chapter 2 Section 15-1 of the Second Report on
Regulatory Reform by the Regulatory Reform Committee of the Headquarters for Promoting Administrative
Reform.
Attachment 2: Review of Qualification Systems for the Compulsory Placement of Certified
Personnel
The individual ministries and agencies shall promptly review qualification systems for the
compulsory placement of certified personnel. The purpose of these reviews shall be to analyze the status
of the respective systems and the details of their regulatory content and to make comprehensive and
rational comparisons of their social benefits and other merits versus their economic costs and other
29
Please note that this document is tentative and that the translation unofficial
demerits. Specifically, the individual ministries and agencies shall examine the qualification systems for
the compulsory placement of certified personnel under their respective jurisdictions including the points
enumerated below, and take appropriate measures based on the conclusions of these examinations by the
end of fiscal year 2001.
(1)
Systems that have become obsolete and now exist in form alone whose prolongation is
difficult to justify shall be subject to a rigorous review including considering their
abolishment.
(2)
In cases where policy objectives can be achieved with greater efficiency and effectiveness
through the introduction of alternative measures, such as process concept based management
systems, the requirements for compulsory placement of certified personnel shall be abolished
or otherwise relaxed in line with the introduction of alternative measures.
(3)
In light of technological advances, reviews shall be made on the workplace units requiring the
placement of certified personnel (required placement units), the number of certified personnel
required to be placed (number of required personnel), and the scope of the functions of
certified personnel, with particular emphasis on numerical standards and definitions that have
not been revised for a long period of time.
(4)
Excessively narrow definitions of required placement units and of the scope of the functions of
certified personnel shall be reviewed, and the integration and/or expansion of such units and
functions shall be examined.
(5)
As long as a proper balance is maintained with the original qualifications systems objectives,
new arrangements shall be actively introduced across all sectors to allow certified personnel to
simultaneously hold posts at or supervise multiple required placement units. Moreover, a
further easing of the current requirements shall be examined for those systems for which such
concurrent postings or supervision is already permitted.
(6)
As long as a proper balance is maintained with the original qualification systems objectives,
the outside contracting of the duties to be performed by certified personnel (instead of
appointing certified personnel in-house) shall be positively permitted. Especially, systems will
30
Please note that this document is tentative and that the translation unofficial
be reviewed across the board to permit such practices as satisfying the requirements for the
compulsory placement of certified personnel, for example, by parent companies and their
subsidiaries as defined under the Commercial Code, or for complete consignment to the
certified personnel employed by companies specializing in integrated management services, to
which various management functions are consigned.
In addition, when current regulations require consignees to be non-profit organizations based
on the Civil Code, such restrictions shall be reviewed to permit consignment to private corporations
from the viewpoint of maintaining fair and effective competition, rationality, and equity.
(7)
Where the effective and efficient realization of policy objectives is hampered because the
nature and status of qualification systems for the compulsory placement of certified personnel
are not necessarily clear, these systems shall be reviewed to ensure that certified personnel can
effectively execute their duties.
(8)
Previous work experience requirements for eligibility to acquire qualifications (or for taking
examinations or participating in courses) shall be reviewed to determine whether they are
justifiable. Requirements of excessively long previous work experience shall be revised to
shorten the required period. In such cases, other approaches to confirm the ability and aptitude
of candidates shall also be examined, such as taking previous work experience in related fields
into account and combining work experience with examinations and course work to satisfy the
work experience eligibility requirements.
When previous work experience requirements are set for taking examinations or participating
in courses, these requirements shall be abolished unless they can be justified. Instead, while continuing
to properly confirm the ability and aptitude of candidates, the government shall examine setting
previous work experience as a requirement for acquiring qualifications, regardless of examinations
taken and courses completed, to expand the opportunities for candidates to take examinations and
courses
(9)
Absent of clear and rational justifications, educational and other eligibility requirements for
acquiring qualifications (or for taking examinations or participating in courses) that have no
31
Please note that this document is tentative and that the translation unofficial
direct bearing on the duties of the certified personnel shall be abolished.
(10)
When the successful passage of examinations or the completion of certain courses are
requirements for acquiring qualifications, the frequency of such examinations and courses
shall be increased if they are not presently being conducted at least once per year.
(11)
While maintaining the intended goals and effects of qualification systems for the compulsory
placement of certified personnel, these systems shall be revised to secure transparency for
examinees and course participants and to realize more convenient systems with a smaller
burden by publicly releasing the standards for judging success or failure in examinations and
courses, introducing an examination system whereby candidates can be credited for
successfully passing individual examination subjects, publishing examination questions and
allowing examinees to take home examination questions, shortening the class time and the
duration of courses, introducing correspondence courses, examining the grounds for the
computation of examination and course fees, etc.
Moreover, to increase the convenience of qualification candidates, the individual ministries
and agencies shall present information regarding the systems under their jurisdictions on their Internet
websites, including general information, information regarding the method for acquiring qualifications
and information regarding the bodies implementing examinations and courses.
(12)
For related and similar qualifications, the government shall examine actively promoting the
integration of qualifications, as well as the acceptance of cross-entry or non-reciprocal entry
among occupational fields. While continuing to properly confirm the ability and aptitude of
candidates, the government shall advance the integration of examinations and courses and the
provision of exemptions from certain examinations and course work requirements within
reason.
(13)
Standards for special provisions pertaining to the eligibility for taking examinations and the
acquisition of qualifications shall be stipulated and published. Special exemptions deemed to
be unjustified shall be reviewed and rectified.
(14)
In cases where physical or other disabilities are presently grounds for ineligibility for
32
Please note that this document is tentative and that the translation unofficial
qualifications, measures shall be implemented as necessary in accordance with the policies of
the Headquarters for Promoting Measures for the Handicapped.
(15)
Certification validity periods and the compulsory participation in periodic training courses
shall be reviewed and when they are judged to place an excessive burden on certified
personnel or to otherwise lack rational justification, such systems shall be revised including
their possible abolition, replacement by other methods, and possible reductions of course
durations and course fees.
(16)
From the perspective of eliminating the harmful effects of functional monopolies and
improving the convenience of candidates taking courses by making the best possible use of
private-sector resources, the government shall examine systems that will not restrict the
presentation of courses to non-profit organizations and that will permit the consignment of
course presentation works to multiple private-sector bodies.
(17)
From the perspective of the international harmonization of regulations, the government shall
examine the contents of similar individual qualification systems for the compulsory placement
of personnel in foreign countries and utilize the results of these examinations as a valuable
reference for continuous reviews of Japanese systems.
The government shall also devise necessary measures in accordance with the
internationalization of the economy, such as mutual recognition with overseas systems.
(18)
Exclusivity regulations prohibiting or restricting certified personnel from engaging in other
works shall be revised except when they are absolutely necessary considering the duties and
working hours of the concerned certified personnel.
* Note: The above reviews shall be undertaken in accordance with Chapter 3 Section 2-2 of the Report on
Regulatory Reform by the Regulatory Reform Committee of the Headquarters for Promoting Administrative
Reform, and Chapter 2 Section 15-2 of the Second Report on Regulatory Reform by the Regulatory Reform
Committee of the Headquarters for Promoting Administrative Reform.
III. Measures by Individual Sector
1.
The Legal Sector
33
Please note that this document is tentative and that the translation unofficial
(1) Basic Policy for the Legal Sector
The government shall strive to expand and strengthen the human foundation linking citizens with
the judicature by greatly increasing the number of legal professionals and reforming the attorney system,
and to construct a legal system that is easily used and understood by the citizenry.
Also, while securing the efficacy of corporate governance to respond to the drastic changes in the
economic environment surrounding business enterprises, the government shall review the proper nature
of corporate board of directors systems and other corporate organs to facilitate flexible and efficient
business activities. Moreover, the government shall rigorously revise the Civil Code and the
Commercial Code so that they will be easily understood by the citizenry by rephrasing the Civil Code
and Commercial Code in colloquial language adopting the hiragana syllabary.
Additionally, the government shall advance the computerization of documents and revise the
joint stock company system to accurately and swiftly respond to the advance of the IT revolution, the
expansion of capital markets, the globalization of the economy and the other drastic changes in the
economic environment surrounding business enterprises.
(2) Legal Sector Priority Items
 Greatly Increasing the Number of Legal Professionals and Otherwise Realizing a Legal System that
is Easily Used by the Citizenry
The Interim Report of the Judicial Reform Council states “While ascertaining the conditions of
systems to foster new legal professionals, including those at law schools, there is a need to aim at
securing approximately 3,000 new legal professionals in a systematic manner as quickly as possible.”
Based on the conclusions of the Judicial Reform Council, the government shall strive to rapidly conduct
the necessary surveys and examinations for increasing the number of professionals who pass the
National Bar Examination to about 1,500, and based on the conclusions of these examinations to
promptly devise the requisite measures to greatly further increase the number of legal professionals in an
appropriate manner.
Also based on the conclusions of the Judicial Reform Council, to appropriately respond to the
legal demand for the time being, the government shall devise the necessary measures toward permitting
34
Please note that this document is tentative and that the translation unofficial
legal professionals who are not attorneys to handle certain types of legal works within a specified range,
including participation in lawsuit procedures, and to implement other revisions toward expanding access
to attorneys such as reinforcing attorneys’ abilities to conduct legal works by permitting the
incorporation of law offices and liberalizing the restrictions on attorneys concurrently holding other
posts and on their sales activities.
 Rigorously Reviewing the Civil Code and the Commercial Code, including Improving Corporate
Governance
By improving the nature of corporate board of directors and board of auditors systems and the
system for derivative actions, the government shall strive to establish a corporate governance system
harmonizing both the efficiency and the financial soundness of business enterprises.
Additionally, the government shall revise the Civil Code and the Commercial Code, which are
presently written in literary language and expressed in the katakana syllabary, so they will become
regulations that are more suitable for contemporary society, and shall rephrase the Civil Code and the
Commercial Code in colloquial language adopting the hiragana syllabary.

Diversifying the Funds Procurement Methods of Business Enterprises
The government shall strive to expand and improve the funds procurement methods of
business enterprises from the perspectives of diversifying equity finance methods, for example, by
expanding the framework for the issuance of non-voting preferred stock and preparing and upgrading
the system for tracking stock.

Advancing Computerization Related to the Commercial Code
The government shall strive to revise the Commercial Code to respond to the IT Revolution,
for example, by permitting electronic notification of the holding of general shareholders’ meetings and
the electronic exercise of shareholders’ voting rights.
2.
The Financial Sector
(1)
Basic Policy for the Financial Sector
The government is currently implementing a Japanese version of the financial Big Bang that
35
Please note that this document is tentative and that the translation unofficial
will achieve a major reform of systems aimed at revitalizing Japan’s financial and capital markets so that
they will become internationally competitive, provide the citizenry with good funds management
methods and funds procurement routes and under the principles of establishing free, fair and global
markets.
The government shall strive to activate markets by continuing to reform financial markets,
beginning with the bold abolishment and relaxation of regulations, and to rapidly devise measures for
regulations that have not yet been revised in accordance with the purport of the financial Big Bang in
order to improve user convenience. The government shall also continue to vigorously promote
regulatory reform to address those regulations that urgently need to be revised to respond to the drastic
changes in the financial environment.
(2) Financial Sector Priority Items

Improving the Convenience of Customers, Etc.
The government shall strive to diversify the range of customer asset management methods, for
example, by permitting banks to enter the trust business and permitting non-banks and firms in other
industries to provide bank deposit withdrawal services through CDs and ATMs, and to otherwise
improve the convenience of customers, etc., by facilitating a wider selection of new financial products
and services.

Revitalizing Financial Markets
While giving due consideration to the soundness of financial institutions, the government shall
continue to review the firewalls separating the banking, insurance and securities industries, and
otherwise further promote mutual market entry among different industries. In this manner, the
government shall strive to revitalize financial markets, for example, via the provision of the new
financial products that will be created by financial institutions’ own ingenuity. Additionally, the
government shall promote greater efficiency in financial markets by advancing paperless CP and
reviewing corporate bond registration requirements.

Improving the Management Efficiency of Financial Institutions, Etc.
The government shall promote the reorganization of financial organs, the creation of alliances
36
Please note that this document is tentative and that the translation unofficial
and corporate spin-offs, and the outsourcing of work by expanding the permitted range of operations of
subsidiaries and reviewing other regulations pertaining to the restriction of business scopes and improve
financial organs management efficiency. The government shall also promote responses to the advance of
IT, for example, by reviewing the employment structure to permit the utilization of dispatched workers
for insurance sales via the Internet, etc.

Securing International Harmonization
From the perspective of securing international harmonization, the government shall promote
the development of a framework for the liquidation of claims based on the philosophy in the Law
regarding the Transferor’s Place of Residence, which is becoming an international standard, and
continue to thoroughly implement non-discriminative regulations.
3.
Education and Research
(1)
Basic Policy for Education and Research
Amid the rapid advances of IT, globalization, and the demographic trends of the aging
population with low replacement fertility, the government shall advance reforms of the educational
system from the user’s perspective toward fostering the human resources and creating the intellectual
properties that are the foundation of the nation’s existence to promptly respond to the changes in Japan’s
industrial structure and the desires of individuals receiving educational services. Amid these changes in
socioeconomic conditions and the demands to reinforce Japan’s foundations as an educational nation
and as a creative scientific and technological nation, the government shall also upgrade the competitive
environment at educational and research institutions and promote linkages among industry, academia
and government to improve the educational and research functions at the nation’s universities and
graduate schools to the global level and to foster the development of creative personnel.
To these ends, particularly for primary and secondary education, to promote the provision of
educational opportunities in accordance with the abilities and aptitudes of children and pupils, the
government shall strive to expand school choice, to make each school more unique, and to secure high
quality teachers with strong individuality. At the university level, while promoting further reforms such
as advancing independent administration based on the judgement and self-responsibility of each
37
Please note that this document is tentative and that the translation unofficial
institution under a competitive environment, the government shall strive to revitalize research activities
and to increase the mobility of personnel engaged in education and research.
(2)
Education and Research Priority Items

Making Schools More Unique and Expanding School Choice
The government shall strive to advance the uniqueness of individual schools and expand
school choice by setting flexible districts for primary schools, junior high schools and high schools and
by clarifying the standards of establishment for primary schools and junior high schools.

Promoting Education in Accordance with Students’ Personalities and Proficiency Levels
The government shall promote education in accordance with students’ personalities and
proficiency levels by advancing group study activities via the promotion of team teaching.

Promoting the Adoption of IT in the Field of Education
The government shall devise measures whereby schools will independently transmit school
information via the Internet so that information regarding the educational activities at each school can
easily be accessed, and promote curricular guidance utilizing computers, etc.

Securing High-Quality Teachers with Strong Individuality
The government shall strive to secure high-quality teachers with strong individuality for the
nation’s public schools by improving teacher employment practices, expanding and upgrading teacher
training opportunities, and improving teacher evaluations and the reflection of evaluation results in
treatment policies.

Enhancing the Autonomy and Self-Reliance of University Administration
While encouraging sufficient information disclosure regarding universities’ educational
content and management conditions and promoting evaluations of university management, the
government shall strive to further enhance the autonomy and self-reliance of university administration,
for example, by reviewing the approval system for the establishment of academic departments.
 Promoting Linkages among Industry, Academia and Government, and Increasing the Social
Mobility of Personnel
38
Please note that this document is tentative and that the translation unofficial
The government shall further promote linkages among industry, academia and government for
the maximum utilization of human resources at universities and research centers and to improve Japan’s
research and development efforts to the global level, and also increase the social mobility of personnel
by working to spread the adoption of the tenure system.
4.
(1)
The Medical Sector
Basic Policy for the Medical Sector
Japan has maintained a system whereby all citizens can equally enjoy the benefits of health
care through a national, universal coverage, medical insurance system. However, due to the aging of
society, the medical insurance system is now facing the increase in medical care expenses. Medical
expenses, particularly those for the elderly, must be addressed so as not to greatly be detached from
economic trends while the system for allotting the burden of health care expenses must be reconstructed
in a manner that is fair and acceptable to the citizenry. Moreover, the nation’s health care practices need
to be reviewed to ensure that there is no waste or inefficiency in terms of the length of hospitalization
periods, the administration of medicine and medical tests, including evoking greater cost-awareness
among both providers and users of medical services. Additionally, from a cost-benefit perspective, it
will be important to emphasize activities to prevent the onset of so-called “lifestyle diseases” such as
cancer and diabetes beforehand, as well as activities to secure the safety of medical practice given the
large number of medical accidents that have occurred in recent years.
Reflecting these conditions, in approaching the Regulatory Reform of the medical sector, the
government shall promote mutual competition among medical institutions giving due consideration to
the unique characteristics of the medical field to improve the quality and efficiency of medical services.
To achieve this, the government shall promote appropriate information disclosure of medical
information including patient records and receipts, further promote third-party evaluation of medical
institutions, and promote the establishment of Evidence-based Medicine (EBM) and of systems to
prevent medical accidents, as well as the effective utilization of IT.
(2)
Medical Sector Priority Items

Improving the Quality of Medical Practice
39
Please note that this document is tentative and that the translation unofficial
The government shall strive to improve the quality of medical practice by preparing EBM
databases, expanding and improving clinical abilities via medical education and other means, and
through the establishment of team medicine, etc.

Supporting Patient Choice in the Selection of Medical Institutions
The government shall strive to support patient choice in the selection of medical institutions by
reviewing the regulations restricting advertising by medical institutions, expanding and improving
third-party evaluations, and promoting and spreading informed consent practices.
 Improving the Efficiency of the Medical System
The government shall promote the improvement of the medical system by reviewing the
medical care provision system, the medical service compensation system, etc.

Establishing Systems to Prevent Medical Accidents
The government shall devise a comprehensive policy for establishing systems to prevent
medical accidents, including improving the safety management infrastructure within medical
institutions and the social infrastructure for securing the safety of medical practice, reviewing the
processes for training medical specialists, conducting the necessary examinations regarding medical
services compensation, etc.
 Rapidly Establishing a High-Level Emergency Medicine System and Improving Pediatric Medicine
The government shall rapidly devise a system that can provide high-quality emergency
medicine 24 hours a day as part of upgrading the nation’s emergency medicine system. The government
shall also actively promote measures to secure a sufficient number of pediatricians to expand and
upgrade Japan’s pediatric medicine.

Promoting the IT Revolution in the Medical Sector
The government shall devise a strategic grand design for the adoption of
IT in the medical
sector, and promote higher quality and more efficient medical practice by comprehensively advancing
IT through supporting the adoption of electronic patient records and the establishment of linkages with
other related data systems, etc.
40
Please note that this document is tentative and that the translation unofficial

Promoting Human Genome Based Medicine
The government shall actively promote research on human genome based medicine to
contribute to the new development of systems for the made-to-order medicine, preventative medicine
and medical treatment of the future based on the human genome.
5.
Social Welfare, Etc.
(1)
Basic Policy for Social Welfare
In order to realize user-centered nursing care and childcare services, the government shall
actively promote social welfare reform in accordance with social needs aiming to expand the quantity
and improve the quality of services to guarantee the provision of efficient services utilizing the vitality
of the private sector, based on such perspectives as promoting support not only of social welfare
juridical persons but of diverse private-sector organizations, firmly establishing systems that need to be
newly established or reinforced to expand and improve the nation’s social welfare system (monitoring
and evaluation systems, information systems, credential systems, etc.), and designing systems that
facilitate user choice.
For nursing care, while the government was to consider re-examining the overall nursing care
insurance system with the view to instituting reforms approximately five years after the enforcement of
the related legislation, the government shall immediately address all the problems related to this system
that can be promptly rectified.
Regarding measures for people with disabilities, the government shall aim, under the concept
of main-streaming of people with disabilities, to create a society in which people with disabilities can
actively participate in socioeconomic activities.
Regarding pensions, the government shall promote the expansion and improvement of
corporate pension systems, etc., while working for an appropriate division of roles under the pension
system between the public and private sectors.
(2)
Social Welfare Priority Items

Improving the System for Providing Nursing Care
41
Please note that this document is tentative and that the translation unofficial
The government shall strive to improve the system for the provision of nursing care toward
improving the overall quality of nursing care services by promoting the adoption of IT for nursing care
insurance benefit payment works, promoting the standardization of nursing care services, constructing
systems for monitoring nursing care services etc., and examining the proper nature of nursing care
managers.

Promoting Competition in Nursing Care Services
From the perspective of balancing the burden between nursing care services provided at
facilities and home care services, the government shall examine a revision of so-called “hotel costs,”
including the nursing care compensation given to special nursing homes for the elderly, and also
promote competition to improve the quality of services provided under the nursing care insurance
system by considering the operation of care houses by private-sector firms.

Improving the System for Providing Childcare Services
The government shall strive to improve the system for the provision of childcare services
toward improving the quality and expanding the diversity of childcare services by promoting the
consignment of public childcare center management to private-sector bodies, examining the proper role
of childcare providers, and revising the regulations governing short-term childcare providers.

Promoting Social Participation by People with Disabilities
The government shall promote the creation of barrier-free public transportation, sidewalks,
traffic signals, etc. based on the Transportation Barrier-Free Law as well as promote the advancement of
a barrier-free information environment by developing easy-to-use telecommunications equipment and
systems. Moreover, the government shall review and take necessary measures regarding provisions in
qualification-acquisition systems that disqualify people with disabilities.

Expanding and Upgrading Corporate Pensions, Etc.
The government shall promote the creation of unified systems for defined-benefit corporate
pensions to secure retiree’s rights to receive benefits. In addition to defined-benefit corporate pension
systems, as a new choice, the government shall also promote the introduction of defined-contribution
pension systems.
42
Please note that this document is tentative and that the translation unofficial
6.
Employment and Labor
(1)
Basic Policy for Employment and Labor
To support the development of conditions whereby individual workers can independently
manifest their own abilities, the government shall promote effective human resource development
efforts that foster the capabilities of individual workers, and while aiming at the realization of a vibrant
society, the government shall respond to the various conditions that require social assistance. Moreover,
to guarantee and improve workers’ overall lifestyles, the government shall actively promote policies to
respond to changes in socioeconomic conditions including the aging population with low replacement
fertility, changes in the industrial structure, and changes in the work ethic.
Additionally, to respond to these socioeconomic changes, the government shall promote a
transformation of all employment and labor regulations from a prior regulation approach to an ex post
facto regulation approach, emphasizing improvement of the safety net.
(2)
Employment and Labor Priority Items

Expanding Employment Opportunities
The government shall strive to expand employment opportunities, given the changes in the
industrial structure and the present harsh labor market and unemployment conditions, by promoting the
creation of new employment opportunities in information and communications technology, nursing care
and other sectors that are expected to grow in the future, and by working to resolve the mismatch
between labor supply and demand.
To these ends, the government shall upgrade the environment for the development of the
employment agency business utilizing the Internet, and review the entire system of regulations
governing the temporary placement business, including the permitted fields and placement terms, based
on the implementation conditions of the revised Manpower Dispatching Business Law three years after
this law comes into effect.

Expanding and Improving the Labor Market Safety Net
In addition to the measures stipulated in the previous paragraph, the government shall strive to
43
Please note that this document is tentative and that the translation unofficial
improve the labor market safety net, from the perspective of strengthening the coordination of labor
supply and demand, by revising the “employment development of specified job applicants” assistance
system by making introductions by public employment security offices a prerequisite to receiving
benefits under this system, and by promoting participation in the employment insurance system by
workers who are not yet covered by the employment insurance system.

Promoting Diverse Work Styles
The government shall promote the expansion of work style options so that workers can
manifest their creative abilities. To these ends, the government shall promote the spread of the
discretionary hours working system for planning, research and analysis duties. In addition, the
government shall survey the implementation conditions of the Labor Standard Law as revised in 1998 to
conduct the required examinations as stipulated by this law.
7.
Agriculture, Forestry and Fisheries
(1)
Basic Policy for Agriculture, Forestry and Fisheries
Regarding agriculture and agricultural products, ever since the enactment of the Law for
Stabilization of Supply, Demand and Prices of Staple Food (Law No. 113 of 1994), the government has
been implementing a radical reform of Japan’s agricultural policy, including efforts to reinforce the
constitution of the nation’s agriculture by reviving the autonomy of producers through the introduction
of the market principle. The government enacted the Basic Law of Food, Agriculture and Rural Areas
(Law No. 106 of 1999) in fiscal year 1999, and has otherwise been striving to foster efficient and stable
farm management through intensive measures for motivated farmers.
Regarding forests and forestry, the government formulated a Forestry Policy Reform
Guideline in December 2000, has radically revised the former policy orientation which was focused on
the production of lumber, and is shifting toward forestry policies for the sustainable utilization of
forests’ diverse functions.
Regarding fisheries, the government formulated a Basic Fishery Policy Guideline in
December 1999, has radically revised the former policy orientation which was focused on improving
fishery productivity and modernizing management and is shifting toward fishery policies for the
44
Please note that this document is tentative and that the translation unofficial
appropriate preservation and management and the sustainable utilization of fishery resources.
45
Please note that this document is tentative and that the translation unofficial
Henceforth, the government shall continue with this policy direction to promote the reform of
agriculture, forestry and fishery systems in a steady and orderly manner not only to increase production
but also giving due emphasis to improving and securing the stability of citizens’ lifestyles.
(2)
Agriculture, Forestry and Fisheries Priority Items

Promoting the Privatization of Agricultural Products Inspections
The government shall strive to secure smooth transactions in agricultural products by steadily
promoting the privatization of agricultural products inspections which will be enforced from FY2001
and by conducting inspections suited to consumer needs.

Expanding Consumer Choice
The government shall contribute to appropriate consumer choices by appropriately
implementing quality labeling of agricultural products including quality labeling standards related to
gene modified agricultural products which will be applied from FY2001.

Promoting the Sustainable Utilization of Forests’ Diverse Functions
The government shall promote the sustainable utilization of forests’ diverse functions by
reviewing the forestry planning system.

Promoting Appropriate Resource Management
The government shall advance appropriate resource management, and greater efficiency and
reduced burdens in fisheries management, by improving the wide area fisheries resource management
system.
8.
Distribution Sector
(1)
Basic Policy for the Distribution Sector
The distribution sector functions as a nexus connecting producers with consumers, and plays a
major role in enhancing consumer lifestyles and improving the quality of life of the citizenry. With the
recent upgrading and diversification of consumer needs and the advances in information and
communications technologies beginning with the Internet, it is becoming especially important for
distribution sector areas that are directly linked to citizens’ lifestyles to accurately grasp and promptly
46
Please note that this document is tentative and that the translation unofficial
respond to consumer demand.
Accordingly, the government shall advance the regulatory reform of the distribution sector,
including the abolition of regulations that impede free corporate activities, to contribute to improving
consumer convenience and expanding consumer choice, and to facilitate upgrading and improving the
efficiency of the distribution sector as well as the manifestation of ingenuity by distribution sector
enterprises.
Additionally, to promote electronic commerce utilizing the Internet and other information and
communications technologies, the government shall revise the various concerned legal systems that do
not presume the existence of Internet transactions.
(2)
Distribution Sector Priority Items

Promoting New Market Entry
The government shall promote new market entry into the distribution sector by relaxing the
market entry requirements and otherwise reviewing and revising regulations that place excessive
restrictions on business activities, and thus promote the further expansion of consumer choices.

Relaxing Sales Regulations
The government shall promote further improvements in consumer convenience by relaxing the
sales regulations governing retail firms, and by improving the environment for purchasing and use.
47
Please note that this document is tentative and that the translation unofficial
9.
The Energy Sector
(1)
Basic Policy for the Energy Sector
In addressing Japan’s energy supply, in addition to securing a stable supply of energy, the
demands for achieving greater efficiencies in the new era of worldwide competition resulting from the
globalization of the economy, and the demands for giving due consideration to environmental protection
resulting from the increasing severity of global environmental problems are becoming important issues.
Based on these developments, in the electric power and gas sectors, the government has
advanced reforms of related systems toward achieving greater supply efficiencies, assuming the
maintenance of a proper balance with public interest issues. The government shall work toward
conducting further reviews of the electric power and gas business system which is to take place
approximately three years after these reforms are initiated, from the perspective of actively promoting
regulatory reform, including improving the framework in which the market function, which is the basis
for these reforms, can become fully manifest.
In the petroleum sector, moving forward with the existing policy, the government shall abolish
petroleum industry supply-demand adjustment regulations, while still securing sufficient response
capabilities in case emergencies arise, from the perspective of improving the efficiencies of the
petroleum industry, which plays a critical role in maintaining the stable supply of petroleum to the nation,
through the positive application of the market principle.
(2)
Energy Sector Priority Items

Securing the Market Function in the Partially Liberalized Electric Power Market
The government shall grasp the problems with the electric power supply system and examine
appropriate measures to secure the full manifestation of market functions in the electric power market,
which has been partially liberalized for sales to large-lot users.

Considering the Further Introduction of Competition in the Electric Power Business
The government shall promptly initiate works to contribute to examinations on the further
introduction of competition in the electric power market, after reviewing the problems and issues with
48
Please note that this document is tentative and that the translation unofficial
revising the system.

Considering the Further Introduction of Competition in the Gas Business
The government shall promptly expand its examinations on the future image of the regulatory
system governing the gas business, considering both the gas industry itself and the overall energy
industry.

Revising Petroleum Policy
The government shall abolish the refining and facilities permit systems and other petroleum
industry supply-demand adjustment regulations for times other than emergencies.
10.
Housing, Land and Public Works
(1)
Basic Policy for Housing, Land and Public Works
The changes and the diversification of citizen awareness and demands in recent years, the
present economic conditions, the dramatic improvements and widespread adoption of IT, the
demographic trends of the aging population with low replacement fertility, the heightening of
environmental awareness and other changes in socioeconomic conditions are all prompting a shift from
the prior objective of a quantitative expansion of demand toward a greater emphasis on quality, and
otherwise resulting in the need for new concepts and methods for upgrading urban and regional
infrastructure, housing, and social capital that differ from those of the past. Accordingly, the government
shall strive to accurately grasp and anticipate these types of changes in socioeconomic conditions and to
reconstruct the relevant systems as necessary.
(2)
Housing, Land and Public Works Priority Items

Increasing the Liquidity of Real Estate
Considering the present economic conditions, from the perspective of increasing the liquidity
of real estate, the government shall devise the necessary measures to improve the real estate auction sale
system to make it easier to use, and also advance deliberations on the release of real estate information.

Promoting Greater Use of Used Housing Stock
The government shall upgrade the environment so the used housing market can be positively
49
Please note that this document is tentative and that the translation unofficial
developed. The government shall also advance its deliberations on revising the present Unit Ownership
of Buildings Law (Law No.69 of 1962) and advance other measures to facilitate the smooth
reconstruction of condominium buildings.

Promoting Efficient Land Utilization
The government shall advance examinations on the proper function of the Basic Land
Utilization Plan as a higher-order plan versus the individual plans prepared based on individual
regulations laws, and also provide notifications of technological advice for the smooth implementation
of the revised City Planning Law (Law No.100 of 1968) by local government bodies.

Advancing New Methods of Public Works, Etc.
The government shall promote the model introduction of public involvement to increase
transparency and accountability in decision-making processes and to increase the level of satisfaction of
all concerned parties in the consensus-building process.
11.
The Transportation Sector
(1)
Basic Policy for the Transportation Sector
The government shall strive to bring greater vitality to transportation sector business activities
by promoting competition and the ingenuity of enterprises, fostering the creation of new businesses, the
diversification and upgrading of services, the diversification and reduction of transportation fares and
freight charges, and otherwise improving user convenience. Through these efforts, from the perspectives
of facilitating the smooth movement of people and improving the efficiency of distribution, the
government shall strive to firmly establish the results of the regulatory reform implemented to date, and
shall continue to promote regulatory reform including the relaxation of regulations on market entry and
on transportation fares and freight charges, and thus promote the free development of business
management strategies and expanded choice of transportation service providers based on the
self-responsibility of users.
Additionally, to reduce the burdens placed on citizens and businesses, the government shall
advance the simplification of procedures to the greatest possible extent, for example, by adopting
electronic filing procedures and providing one-stop services.
50
Please note that this document is tentative and that the translation unofficial
(2)
Transportation Sector Priority Items

Relaxing Regulations on Market Entry, Transportation Fares and Freight Charges
To bring greater vitality to business activities and increase user convenience, the government
shall relax the regulations on market entry in the warehousing business and on transportation fares, and
advance deliberations on the regulations governing freight transportation businesses and trucking
businesses.

Reducing the Burden on Citizens and Businesses
The government shall strive to reduce the burden placed on applicants, for example, by
simplifying the certification methods for meteorological instruments.
51
Please note that this document is tentative and that the translation unofficial
12.
(1)
Hazardous Articles and Safety Regulations
Basic Policy on Hazardous Articles and Safety Regulations
The government shall, while giving first consideration to securing safety, revise hazardous
articles and safety regulations, which are designed to secure the safety and health of consumers and
workers, prevent disasters and preserve the environment, to the minimum necessary level from the basic
perspective of efficiently securing safety in response to technological advances and changes in
socioeconomic conditions, and thus strive to reduce the burden from such regulations in order to avoid
putting excess burden and restrictions on the public.
(2)
Hazardous Articles and Safety Regulations Priority Items

Adopting Performance-Based Standards and Self-Confirmation for the Four Safety Laws
Regarding the so-called “four safety laws” (the Fire Service Law (Law No.186 of 1948), the
Industrial Safety and Health Law (Law No.57 of 1972), the High Pressure Gas Control Law (Law
No.204 of 1951), and the Petroleum Kombinat, Etc. Disaster Prevention Law (Law No.84 of 1975)), in
light of the technological advances in recent years, the government shall promote the adoption of
performance-based standards and self-confirmation for those items regulating petrochemical complexes,
as long as safety will not be diminished, and otherwise work to reduce the burden accompanying
inspections, etc.

Revisions of Other Related Regulations
In addition to devising the above-stated measures, in light of the technological advances in
recent years, the government shall strive to relax the technical standards under the “four safety laws,” as
long as safety will not be diminished, from the perspective of reducing the burden on consumers and
businesses.
52
Please note that this document is tentative and that the translation unofficial