Logistics and Transportation:

• On November 24, 1998, a new certification system was introduced for automobile parts, coordinating Japanese entry standards with those of foreign governments. This facilitates the entry of imported parts that comply with internationally accepted standards.
  
  
• On May 27, 1998, the term of new car certificates was extended to allow more time between inspections.
  
  
• Vehicles undergoing major safety-oriented repairs are no longer required to submit to special government inspections.
  
  
  Electricity and Energy:
  
  
• On February 10, 1998, the price of electricity was lowered by 4.67%, providing a savings of ¥71.2 billion to businesses and consumers in Japan.
  
  
• On April 1, 1998, self-service gas stations were approved, reducing manpower needs and the costs paid by Japanese consumers.
  
  
• A new power supply plan was introduced in FY 1998, allowing the sale of 1,550,000 KW of power through wholesale power producers using an open bid process.
  
  
• Legislation that will deregulate retail sales of power for special high voltage users (accounting for 28% of the total Japanese electricity market) will be proposed during the current Diet session.
  
  
  

  Information and Telecommunications:

• On November 11, 1998, telecommunications pricing systems, which had been governed by regulations requiring government pre-approvals for each pricing plan, were simplified, in an effort to move toward a reporting system that allows pricing changes without prior approval.
  
  
• Regulations concerning the ownership of satellite broadcasting facilities associated with radio and television stations were relaxed in March, 1998. Where ownership of companies owning multiple stations was formerly restricted to 10%, it has now been expanded to 30%.
  
  
• Beginning in February 1998, foreign companies operating telecommunications infrastructure within Japan were permitted to purchase and own cable television stations.
  
  
• Within the current fiscal year, a decision will be made on the best method to allow the portability of telephone numbers.
  
  
  

Expansion of Commodity Futures Exchanges

Relatively few commodities, other than gold, platinum and silver, have been freely traded on Japanese commodity futures markets. Procurements were arranged outside Japan or by direct negotiations with commodities producers. New regulations promote pricing efficiencies and flexibility, allowing for the sale of additional commodity products.

• By April 22, 1999, the time and procedures needed to obtain regulatory approval to trade new commodities will be substantially reduced, opening the door to the selling of coffee, aluminum and crude oil products for the first time on Japanese commodity futures exchanges.
  
  
  

Improvement of Business and Commercial Practices

In some industrial sectors, the buildup and accumulation of Japanese commercial practices has created economic inefficiencies and pricing distortions. This has led to Japanese consumers and businesses paying prices above those generally seen in international markets.

• In May 1998, the Japanese Ministry of International Trade and Industry (MITI) released the findings of comprehensive research studies examining Japanese business practices in cosmetics, housewares and construction services (including cement and concrete, as well as certain categories of steel products). Industry groups are now reviewing these reports to develop more competitive business practices.
  
  
• Additional research will be conducted in coming years in other sectors where substantial price differences exist between Japanese and foreign markets.
  
  
  

Review of Japanese Consumer and Industrial Standards and Certification

Companies competing in Japan have sometimes faced the need to design products to comply with unique Japanese standards. This has been troublesome for both Japanese and foreign companies who find themselves unable to take advantage of global production scales and the pricing efficiencies that will allow lower prices to Japanese consumers.

• In November 1998, licensed private companies began to conduct drinking water inspections. Previously, inspectors from corporations established by the Japanese government were required.
  
  
• Since March 1995, over 1,700 regulations incorporated under the Japanese Industrial Standards (JIS) systems have been internationally harmonized.
  
  
• Standards and certification systems regulated under the jurisdiction of MITI concerning consumer goods, LPG, electrical appliances and gas will be relaxed over the coming year in favor of self-enforced industry mechanisms or certifications performed by licensed private companies.
  
  
  

Urban Renewal

As in the U.S. and Europe, the development of suburban and outlying areas has led to a decline of commercial activity within urban centers.

• On July 24, 1998, new legislation was enacted to promote urban renewal in blighted downtown areas.

• Information and Telecommunications: In June 1998, a report prepared by the Prime Minister's task force on Information and Telecommunications was released, leading to a review of Japan's electronic commerce policies. The report includes measures to address issues pertaining to privacy, consumer protection, electronic certification and other systemic changes by 2001.
  
  
• Medical Care and Welfare: Import monitoring of cosmetic products has been relaxed and private companies are now allowed to exhibit cosmetics that are in the process of being approved for sale and distribution.
  
  
• Lifestyle and Culture: International Standards Organization (ISO) guidelines will be applied to appropriate products and services. Japan will join and participate in the ISO process.
  
  
• New Manufacturing Technology: In June 1998, a system was adopted to facilitate the recycling of electrical appliances. In December 1998, air conditioners, televisions, refrigerators and washing machines were registered as items to be recycled under this system.
  
  
• Logistics and Distribution: The Large-Scale Retail Law, which constrains the development of discount stores and large-scale retail outlets is in the process of being abolished. New regulations are being enacted that will integrate retail outlets within a framework of urban planning and environmental conservation.
  
  
• Environment: As a part of Japan's commitment to lower CO² emissions by 6% to minimize the effects of global warming, legislation will be implemented in April 1999, requiring factories and offices to conserve energy and preserve the environment through the adoption of stringent standards.
  
  
• Business Support-Related Services: Research has been undertaken to facilitate the development of model contracts and other measures to encourage outsourcing.
  
  
• Ocean and Maritime: During FY 1997, technologies were developed to allow the design and construction of land extensions along shorelines.
  
  
• Biotechnology: Japan's approval process for biotechnology-related patents has been computerized.
  
  
• Urban Renewal: On December 25, 1997, the Ministry of Construction required local governments to adopt special construction and zoning regulations to facilitate urban renewal.
  
  
• Aviation and Space: In FY 1999, regulations requiring domestic airlines to serve uneconomical locations will be abolished, allowing routes to be determined through a greater reliance on market forces of supply and demand.
  
  
• New Energy and Conservation: Government regulations have been revised to favor wind and waste (biomass) power generation. Companies are now revising their energy procurement systems accordingly.
  
  
• Human Resource Development: In December 1998, the Japanese government began to provide subsidies in the form of tuition stipends to support worker job training.
  
  
• Economic Globalization: In April 1998, import reporting requirements, which affected companies with more than ¥5 million in imports, were abolished. In addition, Japanese companies no longer have to obtain the approval of foreign currency banks to procure imported products.
  
  
• Housing and Construction: On June 12, 1998, regulations governing Japanese housing construction were relaxed, moving to a system of approval based on the quality of materials and performance rather than standardized sizes and weights.