Revision of the Foreign Exchange and Foreign Trade Act as of 2019
Oct 25, 2020
This is a non-official English translation of information from the Ministry of Finance of Japan concerning the Foreign Exchange and Foreign Trade Act
1.Notification issue
Business type pertaining to inward direct investment, etc. for which prior notification is required pursuant to Article 27, paragraph 1 of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) (hereinafter referred to as “inward direct investment, etc.”) and specified acquisition (hereinafter referred to as “specified acquisition”) for which prior notification is required pursuant to Article 28, paragraph 1 of the said Act.
In recent years, there has been a growing trend toward the introduction of cybercriminal law in Japan with respect to industries related to inward direct investment, etc. (hereinafter referred to as “inbound direct investment, etc.”) and specified acquisitions (hereinafter referred to as “specified acquisitions”) that require prior notification pursuant to Article 28, paragraph 1 of the same law. Based on the recent increase in the importance of ensuring cybersecurity, from the perspective of appropriately preventing situations that may have a significant impact on Japan’s national security, such as the outflow of security-important technologies and the destruction of Japan’s defense production and technology infrastructure, it is recommended that the integrated circuit manufacturing industry, etc. be included in the list of industries involved in the acquisition of specified acquisition (hereinafter referred to as “Specified Acquisition”). In addition, the Government of Japan has decided to take necessary measures such as adding the following to the public notice (*), which was published in the Official Gazette today.
Information processing equipment and parts manufacturing industry
Integrated circuit manufacturing
Semiconductor memory media manufacturing industry
Manufacture of optical disks, magnetic disks and magnetic tape
Electronic circuit board manufacturing
Manufacture of wireline communications equipment
Manufacturing of mobile phones and PHS phones
Manufacture of wireless communication equipment and devices
computer manufacturer
Personal computer manufacturer
External storage device manufacturing
Information processing related software manufacturing industry
Outsourcing development software industry(OEM)
Embedded Software Industry
Packaged software industry
Information and Communication Services Industry
Local telecommunications
Long-distance telecommunications
wireline telecom business
Other fixed-line telecommunications
Mobile telecom
information processing services industry
Internet usage support business
https://www.mof.go.jp/international_policy/gaitame_kawase/gaitame/recent_revised/kokuji.pdf
2. Other changes
In addition to the acquisition of 10% or more of the outstanding shares of a Japanese company in a specific industry by a foreign investor, which is currently subject to the notification, the following acts will be added to the notification: (1) acquisition of 10% or more of the total voting rights of a Japanese company and (2) holding 10% or more of the voting rights of a Japanese company by accepting the exercise of voting rights held by other shareholders by proxy, etc. as equivalent to inward direct investment, etc., as defined in the law, and new measures will be taken on effect.
With regard to the Conclusion of a Technology Introduction Contract, etc., prescribed in Article 30 of the Act, the deadline for submitting a report on the Conclusion of a Technology Introduction Contract, etc., in the case where a technology introduction contract has been concluded, etc., has been changed from the former deadline of 15 days from the date of the conclusion, etc., to 45 days or less.
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https://www.mof.go.jp/international_policy/gaitame_kawase/gaitame/recent_revised/20190926.htm
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