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a. Population – size, groth and co!position

Socio"#cono!icand

Political Profile

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Population2$%& esti!ate %2',&(&,)'&

2$%$ census %2*,$+',$2'

ensity ((-.%/!2 

*-(.%s0 !i

Japan's population is estimated at around 127.1 million, with 80% of the

population living on Honshū. Japanese soiet! is linguistiall! and ulturall!

homogeneous, omposed of "8.#% ethni Japanese, with small populations of foreign

wor$ers. ainihi &oreans, ainihi hinese, (ilipinos, )ra*ilians mostl! of Japanese

desent, and +eruvians mostl! of Japanese desent are among the small minorit!

groups in Japan. n 200-, there were aout 1-/,700 nonatin merian 3estern and

-/#,#00 atin merian e4patriates, 27/,700 of whom were )ra*ilians 5said to e

primaril! Japanese desendants, or nikkeijin, along with their spouses6, the largest

ommunit! of 3esterners.

he most dominant native ethni group is the amato people9 primar! minorit!

groups inlude the indigenous inu and :!u$!uan peoples, as well as soial minorit!

groups li$e the burakumin.  here are persons of mi4ed anestr! inorporated among

the amato, suh as those from ;gasawara rhipelago. n spite of the widespread

elief that Japan is ethniall! homogeneous 5in 200", foreignorn nonnaturali*ed

wor$ers made up onl! 1.7% of the total population6, also eause of the asene of 

ethniit! and<or rae statistis for Japanese nationals, at least one anal!sis desries

Japan as a multiethni soiet!, for e4ample, John ie. However, this statement is

refused ! man! setors of Japanese soiet!, who still tend to preserve the idea of 

Japan eing a monoultural soiet! and with this ideolog! of homogeneit!, has

traditionall! re=eted an! need to reogni*e ethni differenes in Japan, even as suh

laims have een re=eted ! suh ethni minorities as the inu and :!u$!uan people.

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(ormer Japanese +rime >inister ar? s? has one desried Japan as eing a nation

of @one rae, one ivili*ation, one language and one ulture@.

he hanges in demographi struture have reated a numer of soial issues,

partiularl! a potential deline in wor$fore population and inrease in the ost of soial

seurit! enefits li$e the puli pension plan. growing numer of !ounger Japanese

are not marr!ing or remain hildless. n 2011, Japan's population dropped for a fifth

!ear, falling ! 20/,000 people to 12A.2/ million people. his was the greatest deline

sine at least 1"/7, when omparale figures were first ompiled. his deline was

made worse ! the >arh 11 earthBua$e and tsunami whih $illed nearl! 1A,000 people

with appro4imatel! another -,000 still listed as missing.

Japan's population is e4peted to drop to "# million ! 20#0, demographers and

government planners are urrentl! in a heated deate over how to ope with this

prolem.  mmigration and irth inentives are sometimes suggested as a solution to

provide !ounger wor$ers to support the nation's aging population.   Japan aepts a

stead! flow of 1#,000 new Japanese citizens ! naturalization 5   帰 化 6 per !ear.

 ording to the CDH:, in 2012 Japan aepted =ust 18 refugees for 

resettlement, while the CE too$ in 7A,000.

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Christ the King College of Science and Technology

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1an/ a!e Population

% o$!o *,)&),&&-

2 o$ohama (,'*),'$(

( ;sa$a 2,''',(-%

& Dago!a 2,2'(,)$-

+ Eapporo %,)%&,&(&

' &oe %,+&&,*-(

- &!oto %,&-&,&-(

* (u$uo$a %,&'(,*2'

) &awasa$i %,&2+,'-*

%$ Eaitama %,222,)%$

%% Hiroshima %,%-&,2$)

%2 Eendai %,$&+,)$(

%( &ita$!ushu )--,2**

%& hia )'2,%($

%+ Ea$ai *&2,%(&

%' Diigata *%2,%)2

%- Hamamatsu *%2,%)2

%* &umamoto -(&,2)&

%) Eagamihara -%-,+'%

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Christ the King College of Science and Technology

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2$ Ehi*uo$a -%',(2*

3. 4ross ational Product

agriculure and mining; 2% construction; 4%

trade,transportation and utilities; 17%

manufacturing; 10%

information; 6%

nance and insurance; 6%real estate ; 14%

professional and technical services; 9%

education, health and other services; 19%

government; 13%

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c. Per capita inco!e

Japan 4P per capitahe Fross Gomesti +rodut per apita in Japan was last reorded

at -7/-2."1 CE dollars in 201-. he FG+ per apita in Japan is

eBuivalent to 2"A perent of the world's average. FG+ per apita in Japan

averaged 2#1-#.01 CEG from 1"A0 until 201-, reahing an alltime high of 

-7/-2."1 CEG in 201- and a reord low of 707".// CEG in 1"A0. FG+

per apita in Japan is reported ! the 3orld )an$.

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d. 5alance of pay!ent

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e. 6ndustrial structure

ransformation of the industrial struture in Japan

3hile the differene etween the traditional alane of trade and that with

value added suggests that trade and industrial strutures in ast sia are

eoming more omple4, it an also e onfirmed through the iI that the

industrial struture in Japan has also een transformed. (igure - shows the

perentages of value added in the e4port goods reated in eah industr! in

Japan that an e attriuted to the servie industr! in 200# and 200". (or

e4ample, in the ase of the eletrial mahiner! industr!, appro4imatel! -0% of

the value added inluded in e4port goods is from the servie industr!.

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omparing these perentages in 200# and 200" shows that the servie

industr!'s ontriution to e4ports has inreased mainl! in the proessing andasseml!t!pe manufaturing industries. his means that the servie industr!'s

ontriution to e4ports has een inreasing, and suggests that Japan's domesti

industrial struture has een hanging.

f. Cultural attri3utes

raditional aburatorigami   is made from onl! the finest grade of the lotting

paper aaa leaf, rather than pulp or rie paper . lthough sometimes $nown

as >anila hemp, eu hemp, or Gavao hemp, the aaa plant is not related to

true hemp. he )ureau of (ier and nspetion Eervie defines a total of 1#

grades of aaa, the highest of whih are derived from the leaf sheaths loated

losest to the enter of the aaa stem. 

 Aburatorigami  is essentiall! a !produt from a traditional raft proess that

is deepl! rooted in Japanese ulture, effetivel! using material that might

otherwise e thrown awa!. fter aburatorigami  is used, it an e omposted and

degraded naturall! a$ into the earth. Do oilased hemials are used in its

prodution. s a result, auratorigami has relativel! low environmental impats

g. Cli!atic conditions

he limate of Japan is predominantl! temperate, ut varies greatl! from

north to south. Japan's geographial features divide it into si4 prinipal limati

*ones Ho$$aido, Eea of Japan, entral Highland, Eeto nland Eea, +aifi

;ean, and :!ū$!ū slands. he northernmost *one, Ho$$aido, has a humid

ontinental limate with long, old winters and ver! warm to ool

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summers. +reipitation is not heav!, ut the islands usuall! develop deep

snowan$s in the winter.

n the Eea of Japan *one on Honshu's west oast, northwest winter winds

ring heav! snowfall. n the summer, the region is ooler than the +aifi area,

though it sometimes e4perienes e4tremel! hot temperatures eause of 

the foehn wind.  he entral Highland has a t!pial inland humid ontinental

limate, with large temperature differenes etween summer and winter, and

etween da! and night9 preipitation is light, though winters are usuall! snow!.

he mountains of the hūgo$u and Ehi$o$u regions shelter the Eeto nland

Eeafrom seasonal winds, ringing mild weather !earround.

he +aifi oast features a humid sutropial limate that e4perienes

milder winters with oasional snowfall and hot, humid summers eause of the

southeast seasonal wind. he :!u$!u slands have a sutropial limate, with

warm winters and hot summers. +reipitation is ver! heav!, espeiall! during the

rain! season.

he average winter temperature in Japan is #.1 K 5/1.2 K(6 and the

average summer temperature is 2#.2 K 577./ K(6. he highest temperature ever 

measured in JapanL/0." K 510#.A K(6Lwas reorded on ugust 1A, 2007. he

main rain! season egins in earl! >a! in ;$inawa, and the rain front graduall!

moves north until reahing Ho$$aido in late Jul!. n most of Honshu, the rain!

season egins efore the middle of June and lasts aout si4 wee$s. n late

summer and earl! autumn, t!phoons often ring heav! rain.

h. Political syste!

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Japan is a onstitutional monarh! where the power of the mperor  is

ver! limited. s a eremonial figurehead, he is defined ! the onstitution as @thes!mol of the state and of the unit! of the people.@ +ower is held hiefl! !

the +rime >inister  and other eleted memers of the Giet, while sovereignt! is

vested in the Japanese people.   $ihito is the urrent mperor of 

Japan9 Daruhito, rown +rine of Japan, stands as ne4t in line to

the hr!santhemum hrone.

Japan's legislative organ is the Dational Giet, a iameral parliament. he

Giet onsists of a House of :epresentatives with /80 seats, eleted ! popular 

vote ever! four !ears or when dissolved, and a House of ounilors of 2/2 seats,

whose popularl! eleted memers serve si4!ear terms. here is universal

suffrage for adults over 20 !ears of age, with a seret allot for all eleted

offies. he Giet is dominated ! the soial lieral Gemorati +art! of Japan and

the onservative ieral Gemorati +art! 5G+6. he +rime >inister of Japan is

the head of government and is appointed ! the mperor after eing designated

! the Giet from among its memers. he +rime >inister is the head of theainet, and he appoints and dismisses the >inisters of Etate. (ollowing the

G+'s landslide vitor! in the 2012 general eletion, Ehin*?

 e replaed oshihi$o Doda as the +rime >inister on Geemer 2A, 2012 and

eame the ountr!'s si4th prime minister to e sworn in A !ears. lthough the

+rime >inister is formall! appointed ! the mperor, the onstitution of Japan

e4pliitl! reBuires the mperor to appoint whoever is designated ! the Giet.

Historiall! influened ! hinese law, the Japanese legal

s!stem developed independentl! during the do period through te4ts suh

as Kujikata Osadamegaki . However, sine the late 1"th entur! the =udiial

s!stem has een largel! ased on the ivil law of urope, notal! Ferman!. (or 

e4ample, in 18"A, the Japanese government estalished a ivil ode ased on a

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draft of the Ferman )Mrgerlihes Feset*uh9 with postN3orld 3ar

modifiations, the ode remains in effet. Etatutor! law originates in Japan'slegislature and has the ruer stamp of the mperor. he onstitution reBuires

that the mperor promulgate legislation passed ! the Giet, without speifiall!

giving him the power to oppose legislation. Japan's ourt s!stem is divided into

four asi tiers the Eupreme ourt and three levels of lower ourts. he main

od! of Japanese statutor! law is alled the Ei4 odes. 

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Scope of International

MarketingResearch

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6. Size and Trend of the Mar/et

a. 6ndigenous production volu!e and groth

•  aa 5>usa te4tiles6 is a plant related to anana, the leaves of whih provide

some of the strongest natural fires used ! man. t is indigenous to the

+hilippines, and grows well partiularl! in the provines of )iol, Eamar and

e!te. aa is also of the few ash rops that an grow with relativel! little input

ompared to other rops, in steep forest areas.

 

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(rom 2001 through 2010, prodution of aaa fier averaged A#,701 mt

per !ear and had een dereasing at a minimal rate of 0.8% per annum aused

! the devastating t!phoons in 200A oupled with aaa viral diseases that

ontinued to affet the plantations as well as the dampened foreign demand

rought aout ! the gloal eonomi reession eginning in the latter part of 

2008, onsidered as the most severe downturn sine the Freat Gepression in the

1"-0s. +rodution reahed its pea$ in 2008 at 77,-87 mt as outputs of all

produing regions, partiularl! )iol, Gavao :egion and araga, sustantiall!

inreased during the period. his was primaril! the effet of the inremental

prodution from the aaa plantations estalished in 200# and 200A under 

(GOs program Foal PGevelopment of Dew gri)usiness andsQ and the

ontinued strong demand and attrative pries offered for the fier ! loal

traders, proessors<manufaturers and e4porters. he aaa industr!, however,

suffered a seta$ in 200" when fier !ield slumped to its lowest level of #/,#8/

mt due to the wea$ened mar$et demand and falling pries as a onseBuene of the worldwide finanial risis.

Guring the deade, astern Iisa!as remained as the top aaaproduing

region, ontriuting an average of 2-,#A/ mt or -#."% to the annual average

prodution. )iol followed with an annual average of 1",A70 mt or 2"."% share

while Gavao :egion, whih supplied 1-./% or 8,78- mt, ran$ed third during the

ten!ear period under review. Etarting 200", )iol emerged as the iggest

produer of aaa, outran$ing astern Iisa!as whih aaa areas were adl!

affeted ! viral diseases suh as unh! top, mosai and rat mosai.

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(rom among the aaaproduing provines, atanduanes remained asthe iggest produer followed ! e!te. he top ten produers with the

orresponding output and share to total prodution in 2010 were as follows

P1786C# 879:M# ;!t< =S>?1#

Catanduanes %*,)-% ((.2

9eyte -,$*) %2.&

orthern Sa!ar  (,)+) '.)

avao 7riental (,($$ +.*Surigao del Sur  (,%$+ +.&

avao del Sur  2,))& +.2

Sulu 2,('& &.%

5u/idnon %,))( (.+

9anao del Sur  %,''+ 2.)

Southern 9eyte %,'&- 2.)

 

3. irection and co!position of foreign trade

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ah ountr! tries to inrease the availailit! of goods and servies

to its population through purhasing the shortage from other ountries.

t tries to sell it surplus to other ountries.

ah ountr! has its own urren! e4porter ountr! would not

aept the national urren! of the importer.

ither owns urren! or the international aepted urren! li$e

Gollar, pounds, uro. t...

Gevelopment of the onom!

>eeting the shortages

mports for etter living standards

mproving Rualit! of prodution

Frowth of the eonom! prodution mplo!ment 4pansion

Gemand of other goods Ctili*ation of resoures to soure of 

foreign e4hange.

c. Consu!ption pattern and trends !ar/eting planning

itOs traditionall! the means ! whih an organi*ation ommuniates

to onnet with, and engages its target audiene to onve! the value of 

and ultimatel! sell its produts and servies.

d. Mar/et seg!entation planning

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)asi strategies to identif! segments and selet a target mar$et.  s

people and ommunities grow more diverse, it eomes ris$! for anorgani*ation to offer the same mar$eting mi4 to suh different onsumers.

>ar$et segmentation provides usinesses with the possiilit! of 

ustomi*ing a uniBue set of elements $nown as the /ps 5+rodut, prie,

plae and promotion6 for speifi target mar$ets.

e. e!and trends

+rodution of aaa grew ! more than a fourth in the first si4

months of the !ear on the a$ of higher pries and stronger demand form

the +hilippines traditional mar$ets aroad.

Gomesti proessors onsumed an average of #0,#"2 mt or 77.0%

of the ountr!Os average !earl! prodution of aaa fier during the past

deade. he setorOs fier onsumption level was oserved to e

dereasing fairl! at a rate of 1.1% per !ear. aa fier is eing proessed

loall! into pulp, ordage and various fierraft items.

he pulp setor onsistentl! remained as the growth area of the

aaa industr! utili*ing an average of -A,01" mt or 71.2% of the annual

average loal onsumption and inreasing at a minimal rate of 0.8% per 

annum. he pulp millersO utili*ation level is highl! dependent on the

demand for pulp ! the speialt! paper manufaturers aroad as aaa

pulp is the prinipal raw material used in the manufature of meat and

sausage asings, tea ags, igarette paper, urren! paper and other 

speialt! papers. +roessing of aaa pulp into speialt! papers is done

in urope, the Cnited Etates and Japan instead of in the +hilippines as

there is no availale proessing failit! in the ountr!.

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he ordage setor, on the other hand, onsumed an average of 

10,-A" mt of aaa fier per annum or aout 20.#% of the !earl! averagefier usage of the domesti manufaturers ut dereasing at a rate of 

2.A% per !ear. ordage and allied produts have ontinuousl! een faing

stiff ompetition from those made of s!nthetis and other heaper natural

materials.

(ier utili*ation of the fierraft proessors who are mostl! ottage

ased, e4hiited a dereasing annual rate of 11.0% and onsuming an

average of /,20/ mt or 8.-% of the annual average domesti

onsumption. hese figures, however, ma! not have refleted the atual

situation in the fierraft industr!, as purhases of other fierraft ma$ers

were in loose form and therefore diffiult to monitor. Cnli$e the other 

setors, the fierraft proessors are numerous, not as wellorgani*ed and

are sattered throughout the ountr!.

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66. Structure of co!petition

a. irect co!petition and indirect co!petition9ocal"  hing )ee rading orporation.Country" 5uador6 aa Cnion Gel uador E..

3. ature of co!petition

+ure ompetition low arriers to entr!, man! hoies, no usiness has

dominane

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;ligopol! ver! similar produts, few sellers, small firms follow lead of ig

firms, fairl! inelasti demand

 c. Co!petitive shares of the !ar/et

he +hilippines produed aout A0 000 tonnes of aaa fire, while

uador produed 10 000tonnes. 3orld prodution is valued at around

S-0 million a !ear. lmost allaaa produed is e4ported, mainl! to

urope, Japan and the CE. 4ports from the +hilippines are inreasingl!

in the form of pulp rather than raw fire. ight!five perent of the aaa

prodution is monopoli*ed ! the +hilippines while 1#% omes from

uador. he aaa of the +hilippines has two stong points ompared to

the aaa produed ! the rival ountr!. (or one, appliations and

mar$etailit!wise, the +hilippine aaa has onsiderale edge. Eeond,

Bualit!wise, it is more ompetitive and preferred than the aaa of

uador.

hilippines; !"%

#cuador; 1"%

d. Co!petitive !ar/eting strategies

>ar$eting strateg! inludes all asi and longterm ativities in the

field of mar$eting that deal with the anal!sis of the strategi initial situation

of a ompan! and the formulation, evaluation and seletion of mar$et

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oriented strategies and therefore ontriutes to the goals of the ompan!

and its mar$eting o=etives.

e. 5usiness and co!!ercial practices

Japanese )usiness ustoms

 n understanding of Japanese usiness and soial praties is useful,

if not reBuired, in estalishing and maintaining suessful relationships for

doing usiness in Japan. ndifferene to loal usiness praties an

indiate a la$ of ommitment on the part of the e4porter, and ma! lead to

misunderstandings and ad feelings, whih ould result in the loss of

usiness opportunities. ;ne should not assume that eause meetings

and orrespondene are arried out in nglish that 3estern soial and

usiness norms appl!.

Japanese soiet! is omple4, strutured, hierarhial and group

oriented. t plaes strong emphasis on maintaining harmon! and avoiding

diret onfrontation. Japanese religious pratie tends to e soiall!

oriented and seletive rather than a matter of deep personal ommitment9

ethis tend to e situational. n uilding relationships 5whih often preede

a firsttime sale or an agreement6 one should emphasi*e trust, onfidene,

lo!alt! and ommitment for the long term.

Froup deisionma$ing is important in Japan and has een

generall! desried as a Pottom upQ e4erise rather than Ptop down.Q

(amil! usinesses founded sine 33 and smaller seondtier firms are

e4eptions to this rule. However, even in the large famil! firms, where

deisions are made at the top, the proess is usuall! managed so that

ompan! memers have a sense of partiipation. his t!pe of group

deision ma$ing tends to e slower. :eogni*ing that it ta$es a longer

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time to ultivate usiness relationships in Japan than in the Cnited Etates,

C.E. usiness e4eutives should not e4pet to ma$e a deal in =ust a fewda!s. onsistent followup is vital. i$ewise, C.E. usiness people should

reogni*e the importane of wor$ing with the staff level of their Japanese

ounterparts and not e4lusivel! with the e4eutive level.

Fift giving is e4peted on man! usiness oasions in Japan.

:egional C.E. gifts or ompan!logo gifts are appropriate. Rualit! is

important, ut the gift does not have to e e4pensive. he pa$aging of

the gift is as important as the gift itself and should e done professionall!.

n Japan, sets of four are onsidered unlu$! 5the numer four is

pronouned the same as the word for death6. Fifts that an e shared

among a group are appropriate.

)usiness travelers to Japan should ma$e sure to ring a large

suppl! of usiness ards 5with their title6 when the! ome to Japan9

printing ilingual ards is a nie touh. )usiness ards are e4hanged to

formali*e the introdution proess and estalish the status of the parties

relative to eah other. Japanese ow when greeting eah other ut will

e4pet to sha$e hands with foreign e4eutives. slight ow in

a$nowledgment of a Japanese ow is appreiated. Japanese e4eutives

deal on a last name asis in usiness relationships, and initial usiness

and soial ontats are harateri*ed ! politeness and formalit!.

)usiness travelers visiting a Japanese firm for the first time should

e aompanied ! an interpreter or ilingual assistant. >an! Japanese

e4eutives and deisionma$ers do not spea$ nglish, although man! of

them an greet visitors in nglish and read nglish produt literature

relevant to their usiness or industr! e4pertise. Fenerall! spea$ing,

Japanese are wea$er at hearing and spea$ing nglish, and more adept at

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reading and writing. hus, the Japanese side in a usiness meeting

generall! e4pets a visitor to ring an interpreter if the! are serious aoutdoing usiness. lthough the ost for hiring an interpreter an e ver!

high 5S/00 to S"00 per da! depending on lass6, ringing along an

interpreter shows that a visiting firm is serious aout see$ing to mar$et

their produts<servies in Japan.

he first visit to a Japanese firm generall! serves as a ourtes! all

to introdue C.E. e4eutives and their ompan!, and also allows the C.E.

side to egin to evaluate a target ompan! and its e4eutives as potential

usiness partners. reBuest to meet onl! with nglish spea$ing staff an

mean missing the opportunit! to eome aBuainted with higherran$ing

e4eutives.

  written ontrat, even if less detailed than a ontrat etween two

C.E. ompanies, is essential to meet legal, ta4, ustoms and aounting

reBuirements. ontratual ommitments are pereived as representing

longterm relationships so the terms and onditions, for e4ample whether

to grant e4lusive rights, should e onsidered arefull!.

f. Trade!ar/s and patents

o a!e of e@porting co!panyA M.> Trading Co!pany

o 9ogoA

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666. 1ules and 1egulations

a. Mar/et entry regulations

Euessful Japanese mar$et entr! needs a sales oriented understanding

of the Japanese mar$et, an ahievale - # !ear usiness strateg! and lear

ost and udget ontrol poliies. a$ing the time to full! understand the

Japanese mar$et opportunities for !our produts and servies, putting in plae a

sustainale and ahievale strateg! and ensuring that value will e returned from

ever! en spent, prior to @pouring onrete@ in !our Japanese mar$et entr! are

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three of the $e! insider serets to suessfull! setting up and doing usiness in

Japan.

Ienture Japan will wor$ with !ou to

• full! understand the Japanese mar$et opportunities for !our produts and

servies,• identif! an! government redtape and regulations 5import tariffs, import Buotas,

approval proesses, testing proesses et.6 appliale to !our produts andservies in Japan,

• identif! prospetive ustomers and omplete prelaunh produt evaluations,

• determine the potential Japanese mar$et value of !our produts and servies,

• identif! and understand the strengths and wea$nesses of !our ompetitors in

Japan,• determine the optimal Japanese rand identit! for !our ompan!, produts and

servies,

• Getermine !our

optimal presene in

Japan 5i.e. diret

sales, distriution,

 =oint venture,

aBuisition

et.6,

• identif! potential =oint

venture partners and negotiate with them 5if appropriate6,• identif! potential aBuisition andidates and support an! aBuisition ativities 5if

appropriate6,• register a Japanese ranhoffie or partnership 5to$umei $umiai et.6, or

inorporate a Japanese ompan! 5$aushi$i $aisha, !ugen $aisha, to$utei

mo$ute$i $aisha et.6 on !our ehalf,

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• at as resident representative diretor, manager or managing partner 5as

appliale6,• loate offie spae that satisfies orporate image, ost and loation needs and

negotiate 'est terms' on !our ehalf,

• develop a sales proess optimi*ed to the Japanese usiness ulture and mar$et,

• reate a loali*ed Japanese 3e presene, orporate literature, sales and

tehnial materials and presentations,

• implement a full mar$eting ommuniations and puli relations rollout program,

• identif! potential distriutors, negotiate distriution agreements with them and

help to integrate them into !our e4isting sales hannel infrastruture,

• 5together with !our finanial division6 implement sustainale and osteffetive

finanial ontrols and s!stems that are full! ompliant with oth Japanese and

!our headoffie aounting reBuirements,

• setup a loal infrastruture that is full! integrated with !our headoffie

infrastruture,•  dvise on reruitment, salar! and enefits pa$ages, reruit staff into the new

entit! and help to integrate them into !our orporate ulture.• Ienture Japan's attitude to usiness is aggressive and ver! results oriented.

Cnli$e t!pial mar$et entr! onsultants, Ienture Japan does not simpl! ustomi*e

a proforma report filled with meaningless statistis garnered from mar$et anal!sts

or government agenies. 3e use our aumulated onthestreet e4periene of

initiating =ointdevelopment pro=ets etween Japanese ustomers and foreign

ompanies, mar$eting, rand management, sales and negotiation, to produe a

roadmap for !our Japanese usiness that will get !ou to where !ou want to e

and then put our reputations on the line to helping !ou sueed.

3. Tariff and un"tariff 3arriers

Tariff 

ariffs are ased on the Harmoni*ed E!stem most duties are ad

valorem 5per ent6 ased on the Feneral greement on ariffs and

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rade 5F6 valuation s!stem appro4imatel! ost, insurane and freight

5(6 value 5Tnoterms 1""0O6.

Japan maintains tariffs and restritions on items, inluding

agriultural items, whih are relevant to some ustralian e4porters.

Fenerali*ed preferenes are granted to developing ountries.

TselfassessmentO s!stem designed to e4pedite ustoms learane allows

prior alulation of dut! ! importers.

he +hilippines and uador are the main produers and e4porters

of aaa and aaa produts prinipall! to the C, the Cnited Etates and

Japan. ll ountries have set a *ero >(D dut! for most produts e4ept

for ordage and ropes of aaa, where the duties range from a low of 1."

perent for the Cnited Etates to a high of # perent in g!pt

>(D pplied ariffs ale / ariffs on aa and aa +roduts for seleted ma=orimporters

Product na!e ?3aca fi3re ?3aca cordage

>S Code +($+.$$ +'$-.)$

China &.* +

#urope $ -

Japan $ %.-

Malaysia $ %.*

Singapore $ $

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Thailand + +

:.S.? $ %.)

Eoure 3;

on"tariff 3arriers

+otential e4porters to Japan should not e deterred ! a widel!

pereived view that the mar$et is losed and heavil! regulated. )arriers to

mar$et aess for merhandised and value added goods are mainl!

informal. 4amples of informal arriers inlude, suessful entrane into

usiness networ$s, maintenane of mar$et presene and produt Bualit!

assurane.

(ormal restritions, mostl! on agriultural produe, do e4ist and the

 ustralian Fovernment has a range of mar$et aess issues, whih it

ontinues to wor$ on with the Japanese Fovernment on ehalf of 

 ustralian industr!.

mport liensing ma! e reBuired for some imports. wo ategories e4ist

1. mport Ruota 5R6 Ruotas set ! >inistr! of onom!, rade and

ndustr! 5>6, range from moderatel! to severel! restritive. Ruotas

are imposed on a variet! of foods inluding some dair! produts,

seafood, ereals and grains. mporters must otain an import Buota

alloation ertifiate from >, whih entitles the importer to reeive

an import liense on appliation to a foreign e4hange an$.

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2. mport Gelaration 5G6 a wide range of raw materials, semifinished

produts and manufatured goods an e imported without priorapproval from >. ompleted G forms are freel! verified !

authori*ed foreign e4hange an$s on appliation, prior to import.

Foods must e leared through ustoms within the validit! period

of the liense 5usuall! si4 months6.

mports from ustralia, whih inlude most fresh fruits 5e4luding

ertain oranges, mangoes, (u=i apples, pineapples and green ananas6are su=et to restritions.

 lthough there is no agreed formal definition of D)s, in general,

D)s refer to all nontariff restritions on trade in goods, servies and

investment. hese inlude order measures suh as ustoms proedure

as well as ehindtheorder measures flowing from domesti laws,

regulations and praties. 4porters of J&E produts fae a numer of 

D)s whih often inhiits their ailit! to profital! engage in international

trade. hese inlude strit pa$aging and laelling reBuirements, E+E

measures, omple4 and ureaurati ustoms and administrative

proedures and import liensing reBuirements on the e4ports of proessed

fire produts.

(ire produts that are pa$ed in wooden rates or plaed on

wooden pellets have to e Buarantine treated. Cp until reentl! meth!l

romide was used to fumigate these rates and pellets, eause of its

penetrating ailit!, rapid ation and high to4iit! to a road spetrum of 

insets and pests. However, the use of meth!l romide is now anned in

man! ountries8. lternative treatments are ostl! eause more than one

hemial is needed to treat the road spetrum of pests that need to e

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ontrolled to satisf! the Buarantine reBuirements of importing ountries. Eo

far there does not seem to e an! hemial availale in the mar$et to treatthe same road spetrum of pests as meth!l romide. lot of onfusion

has also arisen eause of the different phasing out periods in the use of 

meth!l romide etween developed and developing ountries under the

>ontreal +rotool. s developed ountries were reBuired to phase out the

use of meth!l romide at the end of 200#, while developing ountries

ould ontinue using the hemial until 201#, often shipments of fire

produts treated with meth!l romide in developing ountries were not

allowed entr! into developed importing ountries.

c. Boreign e@change regulation

Japanese (oreign 4hange ontrols he (oreign 4hange and (oreign

rade aw of Japan, as amended, and the ainet orders and ministerial

ordinanes thereunder, or the (oreign 4hange :egulations, govern ertain

matters relating to the aBuisition and holding of shares ! nonresidents and

foreign investors.

The Boreign #@change 1egulations define non"residentsD asA

• ndividuals who are not resident in Japan9 or 

• orporationswhoseprinipaloffiesareloatedoutsideJapan.Fenerall!, ranhes

and other offies of nonresident orporations loated within Japan are regarded

as residents of Japan, and ranhes and other offies of Japanese orporations

loated outside Japan are regarded as nonresidents of Japan.

The Boreign #@change 1egulations define foreign investorsD as

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• ndividuals who are not resident in Japan9

• orporations organi*ed under the laws of foreign ountries or whose prinipal

offies are loated outside Japan9 or 

• orporations, not less than #0% of the voting rights of whih are held, diretl! or 

indiretl!, ! individuals and<or orporations falling within the definition of Pforeign

investorsQ aove or a ma=orit! of the diretors or other offiers 5or diretors or 

other offiers having the power of representation6 of whih are nonresident

individuals.

?c0uisition of #0uity Securities

n general, the aBuisition of shares of a listed orporation ! a

nonresident of Japan from a resident of Japan ma! e made without an!

restrition, e4ept as mentioned elow. However, a resident of Japan who

transfers units to a nonresident of Japan must file a report to the >inister 

of (inane following the transfer of units to the nonresident of Japan,

unless

• the onsideration for the transfer is U100 million or less9 or

• the transfer is made through a an$, seurities ompan! or 

finanial futures trader as liensed under relevant Japanese laws.

f a foreign investor aBuires shares of a listed orporation and, as

a result of the aBuisition, the foreign investor diretl! or indiretl! holds

10% or more of the issued shares of the relevant orporation aggregated

with e4isting holdings, the foreign investor is, in general, reBuired to report

the aBuisition to the >inister of (inane and an! other relevant ministers

within 1# da!s from and inluding the date of the aBuisition, e4ept under 

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limited irumstanes inluding an aBuisition of shares through the

offering onduted overseas. n ertain e4eptional ases, prior notifiation is reBuired regarding the aBuisition.

istri3utions and Proceeds of Sale

Cnder the (oreign 4hange :egulations, distriutions paid on,

and the proeeds of sales in Japan of, shares of a orporation held !

nonresidents of Japan ma! in general e onverted into an! foreign

urren! and repatriated aroad su=et to ertain e4eptions .he

aBuisition of shares ! nonresident holders ! wa! of a sto$ split is not

su=et to an! notifiation or reporting reBuirements.

d. 6nternal ta@es

ational Treat!ent on 6nternal Ta@ation and 1egulation

1. he ontrating parties reogni*e that internal ta4es and other internal harges, and laws, regulations and reBuirements affeting the

internal sale, offering for sale, purhase, transportation, distriution or use

of produts, and internal Buantitative regulations reBuiring the mi4ture,

proessing or use of produts in speified amounts or proportions, should

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not e applied to imported or domesti produts so as to afford protetion

to domesti prodution.

2. he produts of the territor! of an! ontrating part! imported

into the territor! of an! other ontrating part! shall not e su=et, diretl!

or indiretl!, to internal ta4es or other internal harges of an! $ind in

e4ess of those applied, diretl! or indiretl!, to li$e domesti produts.

>oreover, no ontrating part! shall otherwise appl! internal ta4es or 

other internal harges to imported or domesti produts in a manner 

ontrar! to the priniples set forth in paragraph 1.

-. 3ith respet to an! e4isting internal ta4 whih is inonsistent with

the provisions of paragraph 2, ut whih is speifiall! authori*ed under a

trade agreement, in fore on pril 10, 1"/7, in whih the import dut! on

the ta4ed produt is ound against inrease, the ontrating part!

imposing the ta4 shall e free to postpone the appliation of the provisions

of paragraph 2 to suh ta4 until suh time as it an otain release from the

oligations of suh trade agreement in order to permit the inrease of suh

dut! to the e4tent neessar! to ompensate for the elimination of the

protetive element of the ta4.

/. he produts of the territor! of an! ontrating part! imported

into the territor! of an! other ontrating part! shall e aorded treatment

no less favourale than that aorded to li$e produts of national origin in

respet of all laws, regulations and reBuirements affeting their internal

sale, offering for sale, purhase, transportation, distriution or use. he

provisions of this paragraph shall not prevent the appliation of differential

internal transportation harges whih are ased e4lusivel! on the

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eonomi operation of the means of transport and not on the nationalit! of 

the produt.

#. Do ontrating part! shall estalish or maintain an! internal

Buantitative regulation relating to the mi4ture, proessing or use of 

produts in speified amounts or proportions whih reBuires, diretl! or 

indiretl!, that an! speified amount or proportion of an! produt whih is

the su=et of the regulation must e supplied from domesti soures.

>oreover, no ontrating part! shall otherwise appl! internal Buantitative

regulations in a manner ontrar! to the priniples set forth in paragraph 1.V

 

A. he provisions of paragraph # shall not appl! to an! internal

Buantitative regulation in fore in the territor! of an! ontrating part! on

Jul! 1, 1"-", pril 10, 1"/7, or >arh 2/, 1"/8, at the option of that

ontrating part!9 +rovided that an! suh regulation whih is ontrar! to

the provisions of paragraph # shall not e modified to the detriment of 

imports and shall e treated as a ustoms dut! for the purpose of 

negotiation.

7. Do internal Buantitative regulation relating to the mi4ture,

proessing or use of produts in speified amounts or proportions shall e

applied in suh a manner as to alloate an! suh amount or proportion

among e4ternal soures of suppl!.

8. 5a6 he provisions of this rtile shall not appl! to laws,

regulations or reBuirements governing the prourement ! governmental

agenies of produts purhased for governmental purposes and not with a

view to ommerial resale or with a view to use in the prodution of goods

for ommerial sale.

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56 he provisions of this rtile shall not prevent the pa!ment of 

susidies e4lusivel! to domesti produers, inluding pa!ments todomesti produers derived from the proeeds of internal ta4es or harges

applied onsistentl! with the provisions of this rtile and susidies

affeted through governmental purhases of domesti produts.

". he ontrating parties reogni*e that internal ma4imum prie

ontrol measures, even though onforming to the other provisions of this

 rtile an have effets pre=udiial to the interests of ontrating parties

suppl!ing imported produts. ordingl!, ontrating parties appl!ing

suh measures shall ta$e aount of the interests of e4porting ontrating

parties with a view to avoiding to the fullest pratiale e4tent suh

pre=udiial effets.

10. he provisions of this rtile shall not prevent an! ontrating

part! from estalishing or maintaining internal Buantitative regulations

relating to e4posed inematograph films and meeting the reBuirements of 

 rtile I

e. Trade!ar/s and patents regulation

Japanese trade!ar/ la is mainl! enated ! the rademar$ t 5商

標法 

Shōhyō-hōE6. Cnder this t, onl! registered trademar$s estalish

a @trademar$@ right 5rtile 186, and e4amination proedure is

neessar! for trademar$s to e registered 5rtile 1/6. ;n the other hand, the protetion for unregistered trademar$s is provided ! the

Cnfair ompetition +revention t 5不正競争防止法 

Fusei kyōsō bōshi-

hōE6.

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#0uality for 3oth Japanese and foreign nationals

Japan's rademar$ aw offers eBual protetion for Japanese and

foreign nationals9 the same trademar$ registration proess and onditions

appl! to those residents in Japan and overseas. herefore, ! offering proper 

trademar$ protetion to people who do not urrentl! live in Japan and

ompanies presentl! without head offies or ranhes in the ountr!, Japan's

trademar$ s!stem enourages future e4pansion into the Japanese mar$et !

overseas usinesses.

Birst"to"file rule

rademar$s do not have to e urrentl! in use 5either in Japan or 

overseas6 in order to e registered in Japan9 if the trademar$ owner has the

intention of using the trademar$ in the future, it an e registered in Japan as

long as ertain riteria are met. hus, it is ver! important for an! foreignusiness that thin$s it might e4pand into Japan at some time in the future to

onsider appl!ing for registration of trademar$s in Japan efore entering the

Japanese mar$et. Dote, however, that trademar$s must e used within three

!ears after registration, or the! ma! e nullified. Csing !our trademar$ =ust

one within those three !ears is enough to prevent !our trademar$ rights from

eing anelled.

Trend of Fe"type trade!ar/F protection

(ormerl!, @Dewt!pe trademar$@ has not een in the sope of 

protetion of trademar$s. However, man! Japanese ompanies have een

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reBuested to protet these trademar$s, and in view of the fat that these

trademar$s an gain a pratial use ! protetion, 516 Eound mar$s 526 olor per se mar$s without delineated ontours, 5-6 >otion mar$s, 5/6 +osition

mar$s and 5#6 Hologram mar$s whih have alread! een roadl! proteted

overseas are in the sope of protetion of trademar$s aording to a revision

of the rademar$ aw in 201/ 5Gate of its enforement is still fi4ed6.

n aordane with the present trademar$ laws and regulations, 516

>otion mar$s, 526 Hologram mar$s, 5-6 olor per se mar$s without delineated

ontours, 5/6 +osition mar$s, 5#6 Eound mar$s, 5A6 ;lfator! mar$s, 576 ouh

mar$s, 586 aste mar$s and 5"6 rade Gress are not in the sope of protetion

of trademar$s. However, in reent !ears, whether these @Dewt!pe

trademar$@ should e in the sope of protetion of trademar$s have een

deated, and a revision of rademar$ aws have een onsidered aout this

issue.

Protection of trade!ar/s a3out retailers, etc.

 ording to a revision of the rademar$ aw in 200A 5nforement on

 pril 1, 20076, @:etail servies, et.@ ma! now e aepted as designated

servies for the purpose of protetion for the names of retail and wholesale

stores and the names of mailorder usinesses 5inluding online sales6.

herefore, it is now possile to register the names of stores, suh as retail

outlets, as well as the names of individual produts.

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Si!ilarity of trade!ar/s

rademar$s must e uniBue in order to e registered9 the sound, the

appearane and the meaning of ever! trademar$ must not e similar to an!

other trademar$, either individuall! or olletivel!.

%. Sound

his refers to the sound of the trademar$ as well as the pronuniation

of an! haraters used therein. Foing ! the standard of nglish language

eduation in Japan, it an reasonal! e assumed that most Japanese

people will e ale to understand the pronuniation of nglish words or

Japanese words written in alphaetial haraters orretl!. However, the

same annot e said for words of other languages. herefore, in order to

avoid onfusion, it is preferale to add Japanese $ana haraters showing

how to pronoune the trademar$s onsisting of words in foreign languagesother than nglish to ensure that the proper pronuniation is proteted.

2. Meaning

his refers to the meaning inferred from the haraters that

omprise the trademar$. n the ase of a trademar$ in a foreign sript, the

words @)la$ at@, for e4ample, would on=ure up the image of a la$ at

in the minds of Japanese people, however the Ferman words @Ehwar*e

&at*e@ or the Epanish words @Fato Degro@ would not immediatel! spar$

the appropriate feline image in people's minds, and it is possile that the!

are reogni*ed as oined words whih do not have a speifi meaning.

herefore it is possile that suh trademar$s ould not e4lude other 

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trademar$s whih do ause people to imagine a la$ at if registered as

trademar$s. n this situation, it ma! e etter to otain separate protetionfor a trademar$ whih onsists of a Japanese translation of the original

foreignlanguage phrase.

-. ?ppearance

rademar$s onsisting of haraters that Japanese people are

unale to reogni*e as written haraters, suh as >ongolian or Hindi, are

treated as trademar$s onsisting of devies. his means that the

trademar$ owner is unale to reap an! enefits that a trademar$

onsisting of written haraters ma! have, so one idea is to appl! for a

separate registration of trademar$s onsisting of a Japanese translation or 

Japanese haraters denoting the pronuniation of the foreignlanguage

phrase.

Japanese patent la is ased on the firsttofile priniple and is mainl!

given fore ! the +atent t 5 特 許 法  

okkyohō6 of Japan. rtile 2

defines an invention as @the highl! advaned reation of tehnial ideas

utili*ing the law of nature@.

he definitive version of Japanese law is the te4t in

the Japanese language. n offiial nglishlanguage translation of thelaw does not e4ist, ut the >inistr! of Justie Japan has the wesite

@Japanese aw ranslationQ, where one an searh for Japanese laws

and their unoffiial nglish translation. ntelletual propert! 5+6 laws

suh as +atent t, op!right t, rademar$ t, Gesign t and

Cnfair ompetition +revention t are inluded there. n addition,

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Jaysonville 2 Putatan, Muntinlupa City

the ndustrial +ropert! Gigital irar! 5+G6 offers puli aess to +

Fa*ettes of the Japan +atent ;ffie 5J+;6 free of harge throughinternet. :eliale information on Japanese + law in nglish is also

provided ! the wesites of ntelletual +ropert! High ourt, Japan

+atent ;ffie, @ransparen! of Japanese aw +ro=et@, uropean

+atent ;ffie, and nstitute of ntelletual +ropert! 5+6 of Japan

f. 1egulations on !ar/eting practices or pro!otional !ethods

he provisions relating to promotional mar$eting praties regulate

the nature and administration of those mar$eting tehniBues whih involve

the provision of diret or indiret additional enefits, usuall! on a

temporar! asis, designed to ma$e goods or servies more attrative to

purhasers. he provisions over, amongst others, suh forms of

promotion as

• premium offers,

• redued prie and free offers,

• the distriution of vouhers, oupons and samples,

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Christ the King College of Science and Technology

Jaysonville 2 Putatan, Muntinlupa City

• personalit! promotions,

• harit!lin$ed promotions,

• +ri*e promotions

Protection of Consu!ers

+romoters should have proper regard for normal safet!

preautions. +romotional produts and samples should e distriuted in

suh a wa! as to avoid the ris$ of harm to onsumers. Epeial are shoulde ta$en when sales promotions are addressed to hildren or where

produts intended for adults ma! fall into the hands of hildren. iterature

aompan!ing promotional items should ontain an! neessar! safet!

warnings.

Suita3ility

+romoters should not offer promotional produts whih are of a

nature li$el! to ause offene or produts whih, in the onte4t of the

promotion, ma! reasonal! e onsidered to e soiall! undesirale.

?vaila3ility

+romoters should e ale to demonstrate that the! have made a

reasonale estimate of the li$el! response and that the! are apale of

meeting that response. his applies in all ases e4ept pri*e promotions,

where the numer of pri*es to e awarded should e made lear to

partiipants.

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Christ the King College of Science and Technology

Jaysonville 2 Putatan, Muntinlupa City

Guality

+romoters should ensure that promotional produts meet

satisfator! standards of safet!, durailit! and performane in use.3here

appropriate, suh matters as guarantees and aftersales servie should e

learl! e4plained.

Presentation

he presentation of sales promotions and the assoiated puliit!

should not mislead onsumers.