HOME > > LAW COLUMN > Clarification of “Deemed Export” Controls under FEFTA – Revision of Service Notification –
Efforts to enhance national security through economic measures have been on the rise in Japan in recent years. To control potential outflow of sensitive technologies which could compromise national security, the Japanese government has amended, effective May 1, 2002, the governmental notification known as the “Service Notification” issued by the Ministry of Economy, Trade and Industry (“METI”) on December 21, 1992. This amendment (the “Amendment”) was issued in connection with the Foreign Exchange and Foreign Trade Act (the “FEFTA”) to clarify the concept referred to as “deemed exports” which is embedded within Article 25(1) of FEFTA. As a result of the Amendment even technology transfers within a corporation and technology transfers from universities to their foreign students, which were not covered by deemed export controls before the Amendment, have become subject to deemed export controls, provided that such transfers fall under the “Specific Categories” as described below. This article comments on the deemed export controls and goes into selected details of the Amendment.
