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The following text is intended for general reference only. It is currently under review for accuracy and completeness, as well as formatting.
[letterhead] EMBASSY OF JAPAN
WASHINGTON, D. C.
June 15, 1990
Dear Ambassador Hills:
I am pleased to inform you that the Government of Japan has decided to take measures to achieve substantial improvement in market access for wood products in Japan. These measures are set forth in the Attachment to this letter. In some instances, the implementation of these measures will require Diet approval.
With the implementation of the measures outlined in the Attachment, it is the intent of our Government that the opportunities for the importation and use of wood products in Japan will be facilitated and improved. Moreover, these measures will be implemented in a manner that allows for the practical and economic construction of wood buildings.
In addition, as described in the Attachment, my Government has decided to establish a process to examine the possibilities for further modification of the rules and regulations governing wood construction, while maintaining high levels of safety, with the aim of expanding the use of wood products in Japan.
We look forward to working with your Government to identify products for which harmonization of standards would facilitate the trade and use of forest products in the future, in order to ensure that product standard issues are handled in such a manner as to facilitate trade in the future.
We also look forward to working with you in the Wood Products Subcommittee and the technical committees that will be established, as described in the Attachment, to oversee the implementation of these measures and to seek to resolve any disputes that may arise.
Sincerely yours,
[signature]
Ryohei Murata
Ambassador of Japan
The Honorable Carla A. Hills
United States Trade Representatives
Office of the U.S.T.R.
Washington, D.C. 20506
[letterhead]
THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C. 20506
JUN 15 1990 [rubber stamped date]
His Excellency Ryohei Murata
Ambassador
Embassy of Japan
2520 Massachusetts Avenue, NW.
Washington, D.C. 20008
Dear Ambassador Murata:
I am pleased to receive your letter of today's date concerning the measures that the Government of Japan has decided to take in order to achieve substantial improvement in market access for wood products in Japan. I welcome your Government's commitment to take these measures, as detailed in the Attachment to your letter.
We welcome the measures that your Government has decided to take to increase the opportunities for wood construction in Japan and your assurances that the measures will be implemented in such a way as to allow for the practical and economic construction of wood buildings.
We believe that these measures will be of mutual benefit to our two countries.
We also welcome Japan's establishment of a process that will provide the basis for further modification of the rules and regulations governing wood construction, while maintaining high levels of safety, with the aim of expanding the use of wood products in Japan.
We appreciate your Government's decision to take a positive stance in the Uruguay Round Tariff Negotiations on wood products and look forward to achieving major results in that forum.
We will work closely with your Government to identify products for which harmonization of standards would facilitate the trade and use of forest products in the future and to ensure that product standard issues are handled in such a manner as to facilitate trade.
We also look forward to working with you in the Wood Products Subcommittee and the technical committees that will be established, as described in the Attachment, to oversee the implementation of these measures and to seek to resolve any dispute that may arise. We will advise you of the selection of our public and private sector representatives for these committees in the near future.
Sincerely,
[signature]
Carla A. Hills
JAPAN AND UNITED STATES WOOD PRODUCTS AGREEMENT
I. TARIFFS
MEASURES TO BE TAKEN BY THE GOVERNMENT OF JAPAN RELATING TO WOOD
PRODUCTS (MEASURES)
I. TARIFFS
1. The Government of Japan (GOJ) has decided to take a positive stance in the Uruguay Round Negotiations with respect to the reduction, or as appropriate, elimination of tariffs on the wood Products specified in Annex A, which is attached hereto.
2. Following commitments made in the Uruguay Round MidTerm Review of April 1989, and without prejudice to the basic negotiating methods described in that commitment, the GOJ:
a. Will take necessary measures, including seeking Diet approval, to reduce overall tariff rates on the wood products specified in Annex A from current applied rates by a target amount at least as ambitious as that achieved by the formula participants in the Tokyo Round as part of the implementation of the results of the Uruguay Round Negotiations;
b. Recognizes the importance, as stated in the Uruguay Round MidTerm Review of April 1989, of reducing or eliminating high tariffs, tariff peaks, and tariff escalation, and thereby is of the view that:
(1) the implementation of Uruguay Round Negotiations should ultimately result in the achievement of low tariffs on the wood products specified in Annex A, and
(2) the initial reductions in high tariffs (rates 8 percent and above)on those products specified in Annex A will be greater than subsequent staged reductions in order to achieve immediate substantial improvement in market access.
c. Intends to work closely with the United States Government (USG) and other interested parties on tariff issues in the Uruguay Round and to negotiate with the USG and other interested parties as part of the Uruguay Round Negotiations the level and staging of tariff reductions on wood products specified in Annex A in accordance with the above guidelines.
II. BUILDING STANDARDS
A. Definition: for purposes of the "Measures to Be Taken by the Government of Japan Relating to Wood Products" (Measures), the term "building standards" means the Building Standards Law, as well as relevant cabinet orders, enforcement regulations and notifications.
The legal requirements under the Building Standards Law encompassed by this definition are sufficient to allow the practical and effective implementation of the measures to be taken under Part II and Annex B of the Measures.
B. Performance Requirements
1. It is the policy of the GOJ that, in principle, building standards and requirements should be performance-based and that, where the performance of wood products or wooden building systems is equivalent to that stipulated by these standards and requirements, their use should be permitted.
2. Where only prescriptive building standards are now stipulated, the GOJ will add performance-based standards to the maximum extent possible. In particular, the GOJ notes its intention to introduce into its building standards new testing methods for acceptance of wood fire doors as well as new structural calculation methods for wood frame construction, as detailed in Annex B, which is attached hereto. These new standards will be put into effect in June 1990 for fire doors and by the end of Fiscal Year 1991 for new structural calculation methods for wood frame construction.
3. The GOJ will continue and strengthen its program, directed by the Ministry of Construction (MOC), of research and development to expand the use of wood products and modern building systems in construction. On the basis of current data and information available to it and in accordance with new technical developments, the GOJ will amend promptly its building standards and requirements so as to permit the use of proven wood products and safe building systems.
4. The specific actions now being implemented or contemplated as well as the objectives are outlined in Annex B.
5. With the objectives of promoting the use of proven wood products and safe building systems, and of exchanging views and technical information on building standards, the GOJ will establish, in cooperation with the USG and/or other interested countries, a Building Experts Committee, including representatives of the public sector and private technical experts of Japan, the United States and/or other interested countries. This Committee will hold its first meeting as soon as possible in 1990.
6. With a view towards further improving information about the building standards, rules and regulations and providing a sound basis for the deliberations of the Building Experts Committee, the GOJ is providing the information outlined in Annex F, which is attached hereto.
C. Expeditious Recognition of New Products and Building Systems in the Building Standards and Expeditious Incorporation of JAS and JIS Standards into the Building Standards
1. It is the policy of the GOJ that the recognition of new products and systems and the incorporation of appropriate products coming under Japanese Agricultural Standards (JAS) and Japanese Industrial Standards(JIS) into the building standards should proceed in an expeditious, transparent and predictable manner. In accordance with the "Action Program for Improved Market Access" formulated in July 1985, technical appraisal regarding safety and workability should be completed and new products and systems recognized in the building standards within a three-month period, unless there are exceptional circumstances. The GOJ will seek to incorporate appropriate products coming under JAS or JIS standards into the building standards within a six-month Period.
2. Foreign test data will be accepted whenever possible, consistent with the GATT Agreement on Technical Barriers to Trade, in considering the recognition of new products and systems. In this regard, the GOJ draws attention to the 1987 "Guidelines on the Acceptance of Overseas Inspection Data."
3. The GOJ will further take the actions specified in Annex C, which is attached hereto, concerning the incorporation of JAS and JIS standards into the building standards.
D. Open and Expeditious Certification
1. The GOJ is of the view that, in general, open certification, or general approval of new building materials and systems, is desirable and that closed certification, or the approval of new products or systems only for specific applications or by specified firms, should be avoided except where the new products or systems are of such a technologically unique or complex nature as to warrant such treatment.
2. The GOJ is also of the view that there should be expeditious acceptance of test results and data compiled by the relevant bodies of other countries in the building standards' approval and certification system, even when test methods differ, provided that the methods employed provide sufficient means to determine conformity with the relevant technical regulations or standards in accordance with the 1987 "Guidelines on the Acceptance of Overseas Inspection Data."
3. The GOJ has made efforts to streamline its procedures for approval and in this regard draws attention to the 1987 "Guidelines on the Acceptance of Overseas Inspection Data" and recent work on the categorization and public notification of data necessary for technical appraisal. The GOJ also notes in this regard that, unless there are exceptional circumstances, such approval is effective on a nationwide basis.
4. The GOJ will make further efforts to expedite open approval and certification by taking the actions set forth in Annex D, which is attached hereto, and, consistent with its commitments to provide improved information services, briefing sessions and explanatory information on the approval process to foreign companies upon request.
E. Implementation
1. The GOJ will take all necessary and appropriate actions to ensure nationwide application of all the modifications to the building standards required to implement the actions of the GOJ set forth in this Part, as well as in Annexes B, C and D of the Measures.
2. The GOJ will cooperate with the USG and/or other interested parties to resolve disputes and problems related to the recognition, incorporation, approval and certification of wood products or building systems as quickly as possible and in a manner consistent with the Measures. It is anticipated that disputes will be resolved within three months upon receipt of sufficient data from the parties concerned.
3. The GOJ will inform building officials, local government officials and other appropriate officials, as well as the construction industry, in an effective and timely manner of all changes in the building standards and other requirements set forth in the Measures.
III. JAPANESE AGRICULTURAL STANDARDS
The GOJ will take the following measures with respect to the Japanese Agricultural Standards (JAS).
A. Simplification of Certification Process
1. In order to simplify and expedite the JAS certification process, the GOJ will eliminate, reduce and simplify the documentation required for JAS mill certification. Through the actions described in Annex E, which is attached hereto, with respect to the documentation requirements in the certification of a mill producing structural plywood, the GOJ will implement the following, except in extenuating circumstances:
a. The documentation required for JAS mill applications will be reduced by approximately one-half, and the time period for the GOJ to conduct an on-site inspection and to review and approve the application will be shortened to four months for applications submitted directly to Registered Grading Organizations (RGO's) (only two or three months will be required in cases in which no problems are encountered).
b. When the Foreign Testing Organization (FTO) system is used, the time period, referred to in sub-paragraph (a) above, will be no more than two working weeks.
c. For the approval of new plants, the time period for the GOJ to conduct an on-site inspection and to review and approve the application will be shortened to five months, except when the FTO system is used the time period will be no more than two weeks, and in cases where no problems are encountered, the time period will be shortened to two to three months.
2. In the certification of mills producing products other than structural plywood, the GOJ will take actions similar to those described in Paragraph (1) above, as well as those described in the documentation requirements detailed in Annex E with respect to structural plywood.
3. Under the FTO system, the provision of quality control facilities, equipment and personnel is the responsibility of the FTO, and not of the applicant mill, where there is a quality control contract between the FTO and the applicant mill. In seeking JAS certification, an applicant mill will not be required to provide documentation with respect to the quality control requirements.
B. Adoption and Revision of JAS Standards
1. The GOJ will revise the JAS standards:
a. to include the alternative method of the Nail Shear Test and to incorporate stress values in the structural panels standard; and
b. to recognize Machine Stress Ratings (MSR) and stress values for lumber uses including for use in the manufacture of laminated lumber products.
2. In revising the standards in Paragraph (1) above, the GOJ will:
a. acknowledge and utilize the extensive experience and technology available in the United States and other countries to the maximum extent possible; and
b. make the maximum use of the data on OSB stress values and the stress values for MSR lumber provided by U.S. and/or other foreign entities.
3. Based upon recognition of the impracticality of retesting MSR lumber at the time of importation, the GOJ, after assessment of and rendering a judgment on the quality control programs of certified MSR grading organizations in the United States and other countries, will as a matter of principle recognize the certified stress values referred to in Paragraph (2)(b) above.
4. Foreign technical experts will continue to participate in the development of JAS standards. Foreign test data will continue to be utilized whenever possible, consistent with the guidelines established by the GOJ in "Improvement of Japanese Standards and Certification Systems."
5. The preparation of the final draft of the revised standards, referred to in Paragraph (1) above and the necessary domestic procedures, including the activities of the Research Committee for Agricultural and Forestry Standards, will be completed by March 31, 1991 and the revised standards will be put into effect by July 1, 1991.
C. Equivalency in Testing
1. It is the view of the GOJ that, even where test methodologies and other requirements differ from those set forth in the JAS standards, foreign quality control methodologies can provide equivalent guarantees of a product's quality and safety.
2. The GOJ will judge the equivalence of a foreign quality control methodology on the basis of its analysis of performance and test data provided through a parallel testing program.
3. Upon receipt of a request by a Foreign Testing Organization or other entity, which intends to seek approval of a parallel testing program, the GOJ will, in no more than 60 days, except in very complicated cases, notify the applicant of all the parameters of the testing program that will be required (e.g., the duration of the testing) and all other necessary data that must be submitted with the application. When this data has been submitted, no other information will be required of the applicant.
4. Within six months of submission of the necessary test data, the Research Committee for Agricultural and Forestry Standards will make a judgment that a foreign testing method provides equivalent results.
As soon as possible but within 30 working days, after the Research Committee has made an affirmative equivalency judgment, the GOJ will make an official proclamation in the KANPO of the acceptance, on a provisional basis, of the foreign testing methodology.
5. Thirty (30) days after the equivalency judgment is published in the KANPO, and prior to GATT notification, the GOJ will begin to accept the foreign test results as equivalent to JAS test results. These test results will fulfill the JAS requirements, in accordance with relevant laws and regulations in Japan.
6. It is understood that as a result of the GATT notification process, the GOJ may be required to alter its provisional acceptance of the foreign testing method.
D. JAS Technical Committee
1. The GOJ, in cooperation with the USG and/or other interested countries, will establish a JAS Technical Committee, composed of representatives of the governments and organizations participating in the JAS system and, as it is deemed necessary, private sector technical experts for the purpose of assisting that government.
2. The initial meeting of the Committee will be held before June 30, 1990, and approximately once every year thereafter, with more frequent meetings held when necessary.
3. The purposes of the Committee will be to:
a. hold regular meetings to exchange views and deepen understanding of JAS product standards and the product standards of other countries and such other issues as may be agreed upon;
b. identify products where harmonization of standards would facilitate trade in forest products;
c. examine and make recommendations with respect to the harmonization of standards, in particular with respect to the future development of common standards and testing methodologies; and
d. prepare reports on progress in the implementation of the actions set forth in section B of this Part and in Annex E.
IV. CLASSIFICATION OF LAMINATED WOOD PRODUCTS
1. This Part of the Measures sets forth the policies and actions of the GOJ regarding the appropriate classification of laminated wood products, including, but not limited to, glue laminated (glulam) arches, headers and beams; laminated posts; laminated veneer lumber (LVL); laminated veneer lumber joists and trusses; and tongued and grooved glue laminated lumber. Where such laminated wood products meet the criteria set forth below, the GOJ has decided to classify these products under Harmonized Tariff Schedule subheading 4418.90 (3.9 percent duty), as of June 1, 1990.
2. The GOJ has decided to classify the following laminated wood products under Harmonized Tariff Schedule subheading 4418.90 (3.9 percent duty), as of June 1, 1990.
a. Glulam
(1) Structural 1/ glue-laminated lumber that has a minimum cross section width of not less than 3 inches (76 mm) and a depth (a multiple of the lamination thicknesses) of not less than 5 ½ inches (140 mm) and that fulfills any one of the conditions described below at the time of importation:
(i) processed (curved, camber, tenons, mortises) to be a particular shape for beams or arches;
(ii) has bolt holes in appropriate locations:
(iii) planed or sanded, and chamfered; or
(iv) with average lamination thicknesses of not less than 30 mm.
(2) Glue laminated lumber that has a cross section width of less than 3 inches (76 mm) and a depth of less than 5 ½ inches (140 mm) or across section greater than or equal to that size, but which does not fulfill any of the four conditions set forth in sub-paragraph (a)(l)above, is classified as structural glue laminated lumber when the shipment is accompanied by technical materials 2/ or hardware 3/ showing that the products are intended to be used for structural applications 4/ in the construction of any kind of building, etc. without significant further processing 5/.
b. Laminated Veneer Lumber
Structural laminated veneer lumber (LVL) which fulfills any one of the conditions described below at the time of importation:
(1) assembled products (e.g., beams or joists, combination beams with steel products, and trusses);
(2) products in the form of recognizable unassembled pieces (e.g., prepared with tenons, mortises, dovetails or similar joints for assembly);
(3) pieces processed to a particular shape (e.g., curved, camber) forbeams or arches; or
(4) products having a cross section width (or thickness which is a multiple of the thickness of the laminations) of not less than 1-1/2 inches (38 mm) and a depth of not less than 3-1/2 inches (89 mm) and accompanied by technical material 2/ or hardware 3/ showing that it is intended to be used for structural applications 4/ in the construction of any kind of building, etc. without significant further processing 5/.
c. Tongued and Grooved Glue-laminated Lumber
Tongued and grooved glue-laminated lumber (so-called "decking") which has a width of not less than 5-1/4 inches (133 mm) and a depth (a multiple of the lamination thicknesses) of not less than 2-3/16 inches (56 mm), is designed for use as flooring, roofing, etc., and is not recognizable as glulam when assembled because it is used in flat panel form. Nevertheless, decking prepared with end-joints, such as tenons or mortises, for assembly is classified under Harmonized Tariff Schedule sub-heading 4418.90 (3.9 percent duty).
1/ The term "structural" as used herein is intended only to be descriptive and shall not imply the need to meet requirements in addition to those specified herein.
2/ The term "technical materials" include drawings or diagrams, standard specifications or similar technical manuals, and installation instructions.
3/ The term "hardware" includes hangers, metal plates or brackets which are appropriate in size and quality for the products involved.
4/ The term "structural applications" includes beams, arches, posts, headers, purlins, and other members, which are used in the main frame of any building.
5/ The term "significant further processing" refers only to resawing and overlaying, but not cutting to length or joining members together.
V. ESTABLISHMENT OF WOOD PRODUCTS SUBCOMMITTEE
A. Accomplishment of the Objectives of the Measures
1. The objectives of the Measures are to achieve substantial improvement in market access and to encourage the use of wood products in Japan.
2. With the implementation of the Measures, it is the intent of the GOJ that the use and importation of wood products and wood building systems will be facilitated and a framework established for addressing any relevant issues in the future.
3. Toward this end, the GOJ will cooperate with the USG and/or interested parties to resolve expeditiously any disputes or problems related to the building standards, JAS standards or tariff classifications in a manner consistent with the Measures.
B. Wood Products Subcommittee
1. For the purposes of overseeing the implementation of the policies, procedures and actions set forth in the Measures, resolving disputes and problems arising under it, and facilitating trade in wood products as well as the increased use of wood products, a Wood Products Subcommittee (Subcommittee) of the U.S.-Japan Trade Committee will be established.
a. The Subcommittee will be composed of senior officials of the GOJ and the USG and other appropriate government experts.
b. The Subcommittee will meet twice a year at or about the same time as the Trade Committee, and more frequently when requested.
2. The Subcommittee will review the actual implementation and operation of the policies, actions and procedures upon which the Measures are based, as well as the work of the technical committees established under the Measures (Building Experts Committee and JAS Technical Committee). When disputes arise with respect to the implementation of the Measures, the Subcommittee should seek to resolve them within six months.
3. The Subcommittee will endeavor to identify actions and areas of cooperation which will contribute to the achievement of the objectives of the Measures. If the Subcommittee identifies areas in which revisions are appropriate to achieve the objectives of the Measures, the GOJ will implement mutually acceptable revisions.
VI. SUBSIDIES
In order that the objectives of the Measures will not be undermined, it is the intention of the GOJ that any existing or future subsidies to manufacturers of forest products shall be consistent with the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade and, in that regard, will not nullify or impair benefits accruing to any GATT Contracting Party, directly or indirectly, under the GATT. In addition, such subsidies will be consistent with the OECD Statement on Positive Adjustment Policies of 1982.
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