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  Back   JAMA Positions

Status of Japan Government Commitments Regarding Autos and Auto Parts as Prescribed by the 1995 U.S.-Japan Automotive Agreement

[October 1, 1997]

The Japanese Government is fully in compliance with the US-Japan Automotive Agreement as demonstrated in the following tables of compliant terms. The Japanese Government is supporting these provisions on a continuing basis.

[Japan Industry Efforts]

  Japan Government Commitments Status
1 Inform Japanese auto dealers that are members of the Japan Automobile Dealers Association in writing that they are free to sell competing motor vehicles; attach applicable sections of the Antimonopoly Act Guidelines published by the Japan Fair Trade Commission ("JFTC") DONE
2 Designate an appropriate government contact person to handle inquiries and provide assistance to private parties wishing to establish auto distribution arrangements; provide the names and phone numbers of the government and Japanese vehicle manufacturer contact persons to any interested requesting party DONE
3 Upon request by a foreign auto manufacturer or Japanese dealer, have the government contact person affirm to a Japanese dealer that he is free to sell competing motor vehicles DONE
4 Upon request by a foreign auto manufacturer or Japanese dealer, have the government contact person redistribute to a Japanese dealer the letter and JFTC attachment discussed above DONE
5 Have the government contact person provide information to the JFTC where such information indicates practices that may violate the Antimonopoly Act and/or upon request by a foreign auto manufacturer or Japanese dealer, take other appropriate actions in support of the Foreign Vehicle Dealership Access Plan DONE
6 Provide vehicle owner registration information to foreign vehicle manufacturers under same conditions as provided to Japanese manufacturers DONE
7 Provide financial support to the Japan External Trade Organization ("JETRO") for exhibitions of foreign motor vehicles in Tokyo, Osaka, Nagoya, Sapporo, Fukuoka and other cities in Japan DONE
8 Provide financial support to JETRO for long-term exhibitions of foreign autos in public areas DONE
9 Provide financial support to JETRO for test drives of foreign autos in Tokyo, Osaka, Nagoya, Sapporo and Fukuoka DONE
10 Provide financial support to JETRO for seminars to Japanese dealers regarding handling of foreign autos DONE
11 Provide financial incentives to promote the importation of foreign vehicles with such activities as support to the Japan Development Bank to give low interest loans for constructing and equipping inspection and product improvement facilities for foreign companies establishing sales bases in Japan DONE
12 Provide financial support to the Export-Import Bank of Japan for its work in providing import financing DONE
13 Provide loans to facilitate import sales from the Small Business Finance Corporation and People's Finance Corporation that provide financing needed to increase sales of imports DONE
14 Support the Japanese vehicle manufacturers' activities to expand research and development, design, engineering and supplier support and outreach capabilities in foreign countries DONE
15 Support the Japanese vehicle manufacturers' activities to increase auto parts supplier opportunities in Japan and in other countries where they are located, without adverse discrimination based on capital affiliation DONE
16 Support the Japanese vehicle manufacturers' activities to continue to open design-in and procurement processes to foreign parts suppliers through the use of fair, competitive, transparent, non-discriminatory procedures DONE
17 Provide JETRO financial support to conduct exhibits of foreign auto parts in Tokyo, Osaka, Nagoya, Sapporo, Fukuoka and other cities DONE
18 Provide JETRO financial support to facilitate design-in training by Japanese vehicle manufacturers and first-tier auto parts makers for foreign auto parts engineers DONE
19 Provide JETRO financial support to sponsor auto parts conferences to facilitate and expand relationships between the Japanese auto industry and foreign auto parts suppliers DONE
20 Provide JETRO financial support to assist auto parts selling missions with foreign auto parts suppliers DONE
21 Provide financial support to Japan Development Bank for low interest loans for constructing and equipping inspection and product improvement facilities for foreign companies establishing sales bases in Japan DONE
22 Initiate deregulation of Japan's auto parts and aftermarket DONE
23 Continue to review regulations affecting the auto parts aftermarket and evaluate and respond to foreign auto manufacturer and auto parts supplier requests to improve market access in the parts aftermarket DONE
24 Increase transparency of the definition of "disassembling repair" to improve understanding by Japanese consumers, repair and service businesses, and foreign and domestic auto parts suppliers regarding the legal alternatives for automotive repair and servicing at certified garages or other repair and service businesses DONE
25 Upon request, MOT will inform interested persons within 30 days whether a specific parts replacement operation is or is not within the definition of disassembling repair and inform repair and service businesses and auto parts wholesalers and retailers DONE
26 Conduct a review of the definition of disassembling repair to be complete by August 23, 1996 DONE
27 Specify which parts replacement operations will no longer be within the definition of disassembling repair DONE
28 In conducting review, give due consideration to the progress of motor vehicle technology, regulations in other countries, and requests and comments by interested parties DONE
29 Set up a contact point at MOT to handle requests and complaints related to the definition of disassembling repair; establish and publish a procedure for MOT to respond to complaints within one month, in principle, and provide reasons for response DONE
30 Reduce the minimum floor space required for certified garages DONE
31 Reduce the number of tools and equipment required for certified and designated garages DONE
32 Reduce the number of government-qualified mechanics required for certified and designated garages from two to one, and from three to two respectively DONE
33 Allow certified garages without inspection facilities to be designated as "special designated garages" that can perform repairs for shaken inspections and perform inspections at the inspection site of another designated garage DONE
34 Provide the option of a repair or service facility to be certified to perform disassembling repair DONE
35 Approve specialized certification for any combination of repair or service operations within the definition of disassembling repairs,provided the applicant meets appropriate requirements DONE
36 Limit the number of government-qualified mechanics required at specialized service and repair facilities to one DONE
37 Limit the minimum amount of floor space required at specialized service and repair facilities to the minimum amount directly required to conduct the disassembling repair that he facilities are certified to conduct DONE
38 Limit the tools and equipment required at specialized service and repair facilities to those directly required to conduct the disassembling repair that the facilities are certified to conduct DONE
39 Do not require specialized service and repair facilities to have MOT inspections of their certified repair work DONE
40 Deregulate MOT requirements for modification inspections DONE
41 Eliminate requirements to submit the vehicle to modification inspection by the MOT Land Transport Office for minor modifications of a vehicle's structure or configuration DONE
42 Eliminate requirements to present the vehicle certificate of inspection to the MOT Land Transport Office for minor modifications of a vehicle's structure or configuration DONE
43 Eliminate requirements to pay the weight tax for minor modifications of a vehicle's structure or configuration DONE
44 Apply the same standards for passing a regular shaken inspection to motor vehicles that have undergone a "minor" modification and those that have not undergone a "minor" modification DONE
45 Set up an MOT contact point to handle requests and complaints with regard to modification inspection and alteration of the information on the motor vehicle inspection certificate; establish and publish a procedure for MOT to respond to complaints within one month, in principle, and provide reasons for response DONE
46 Implement a campaign to notify repair and service facility owners, mechanics, consumers, and MOT Land Transport Office of the regulatory changes described above, emphasizing that inspections are not to discriminate against vehicles equipped with foreign or "non-genuine" parts DONE
47 Issue guidance encouraging the Japan Automotive Parts Association to endorse foreign auto parts as "superior parts" based on the same criteria and evidence that is applied to Japanese auto parts DONE
48 Send MITI memo through business associations providing guidance to auto parts distributors that distributors refrain from any form of discrimination when handling foreign-made parts DONE
49 Send MITI memo through business associations providing guidance to auto parts distributors that distributors indicate options available to repair businesses and customers and that they provide customers with opportunities to choose foreign parts DONE
50 Support the establishment of contact points by auto parts distributors, auto parts sales companies and joint sales companies or related vehicle manufacturers to facilitate contacts between foreign auto parts suppliers and companies considering opportunities in Japan DONE
51 Support the creation of a database and information network with information such as data matching motor vehicle types with compatible foreign replacement parts and technical data for use by repair garages; until database is completed, support foreign auto parts suppliers in providing information about their products to consumers DONE
52 Work to achieve further international harmonization of automotive standards DONE
53 Conclude consultations with the United States on standards and certification issues within nine months of August 23, 1995 DONE
54 Continue to facilitate importation of foreign vehicles by dispatching officials to dealer sites to conduct inspection of autos imported under the Preferential Handling Procedure and to meet foreign vehicle manufacturer requests DONE
55 Consider allowing foreign vehicle manufacturers to obtain Japanese Type Designation Approval in their home countries by utilizing home country testing facilities or by stationing an official at Japanese Embassy or Consulate General to conduct the tests DONE
56 Affirm commitment to prevent and eliminate anticompetitive practices in all industries including automotive sector DONE
57 Support voluntary efforts of Japanese firms to develop and implement internal Antimonopoly Act compliance programs and provide advice when requested by such firms DONE
58 Recognize that the Antimonopoly Act Guidelines Concerning Distribution Systems and Business Practices are applicable to all industries including the automotive industry DONE
59 JFTC to affirm commitment to effectively enforce and strictly apply the Antimonopoly Act in accordance with relevant guidelines to address anticompetitive practices in all industries including the automotive sector DONE
60 JFTC to recognize the serious efforts of the relevant companies to address practices highlighted in the JFTC survey of its passenger car industry and will observe that the practices continue to be addressed by such companies DONE
61 JFTC will review reports or information regarding suspected violations of the Antimonopoly Act promptly and take appropriate steps to address such suspected violations depending on the content and reliability of the information DONE
62 JFTC is to perform its duties independently as required under Article 28 of the Antimonopoly Act DONE
63 Provide number and value of new foreign vehicles sold in Japan for annual reviews of the Automotive Agreement DONE
64 Provide number and value of new foreign vehicles sold in Japan by country of export for annual reviews of the Automotive Agreement DONE
65 Provide the number of new foreign vehicles sold in Japan by manufacturer for annual reviews of the Automotive Agreement DONE
66 Provide the number of new foreign vehicles sold through direct franchise agreements with Japanese dealers for annual reviews of the Automotive Agreement DONE
67 Provide the number of new vehicles exported to Japan from Japanese transplants for annual reviews of the Automotive Agreement DONE
68 Provide the official import statistics for auto parts for annual reviews of the Automotive Agreement DONE
69 Hold annual consultations with the U.S. Government on the Automotive Agreement until the end of 2000, when both governments will decide whether to continue the consultations DONE


Japan Industry Efforts Status
1 JAMA members confirm that all dealers are free to sell competing motor vehicles and that a dealer's decision to sell competing vehicles should not concern a dealer with regard to his ongoing relationship with a Japan auto maker DONE
2 JAMA members confirm that all consultation requirement clauses with respect to handling competing motor vehicles that previously existed in dealership agreements have been eliminated DONE
3 JADA members announce their intention to enter into independent franchise agreements with foreign vehicle manufacturers who offer competitive terms, conditions, and products DONE
4 JAMA members establish contact persons within their companies for interested parties to contact when seeking franchise agreements or other distribution arrangements DONE
5 JAMA contact persons meet and explain to each dealer identified by a foreign manufacturer that the dealer is free to sell foreign vehicles and a decision to do so will not affect that dealer's ongoing relationship with the Japanese manufacturer DONE
6 JAMA contact persons respond to any questions or concerns the dealer may have about its continuing relationship with the Japanese manufacturer DONE
7 JAMA contact persons will review the factual basis of any complaint and take appropriate steps in accordance with the company's internal Antimonopoly Act compliance program DONE
8 Japan Automotive Parts Association, the Japan Federation of Auto Parts Sales Association, the Japan Auto Accessories Manufacturers' Association, and the Japan Automobile Service Promotion Association declare their policies to be impartial with regard to foreign or Japanese parts when choosing replacement parts for servicing and repairs DONE
9 Japan Automotive Parts Association, the Japan Federation of Auto Parts Sales Association, the Japan Auto Accessories Manufacturers' Association, and the Japan Automobile Service Promotion Association declare their policies to indicate to their customers options available, including the use of foreign-made replacement parts DONE
10 JAMA and the Japan Automotive Parts Industries Association will make it clear to their suppliers that the handling of foreign and non-genuine parts, as a general rule, are to be conducted freely by each company, without adverse discrimination based on capital affiliation; that business decisions are left up to them; and that they should not be concerned about their relationships with Japanese auto manufacturers or parts sales companies if they carry foreign parts DONE
 

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