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Cablegate: Meti Export Controls Shares Nonpaper On Wassenaar

VZCZCXYZ0005
RR RUEHWEB

DE RUEHKO #1192/01 1220909
ZNR UUUUU ZZH
R 010909Z MAY 08
FM AMEMBASSY TOKYO
TO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHC/SECSTATE WASHDC 3901

UNCLAS TOKYO 001192

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR EAP/J BRYAN, DTC FOR WATKINS
DEPARTMENT OF COMMERCE, BUREAU OF INDUSTRY AND SECURITY FOR
KURLAND

E.O. 12958: N/A
TAGS: ETTC JA
SUBJECT: METI EXPORT CONTROLS SHARES NONPAPER ON WASSENAAR
ARRANGEMENT REGARDING 5-AXIS MACHINE TOOLS


1. (SBU) During an April 30 meeting, METI Export Controls
Deputy Director Atsushi Tanizawa presented EconOff with the
following English language nonpaper, keyed to answer
questions presented to METI by Department of Commerce, Bureau
of Industry and Security.

2. (SBU) Begin Text of GOJ Nonpaper:
Q1: What is the process for obtaining a license to export a
5-axes machine tool to a non-WA member?
A1: We do not have any special procedure for 5-axes machine
tools. Exporters should apply for the license to the
Ministry of Economy, Trade and Industry (METI) or its local
branches.

Q2: What are the criteria for measuring export license
processing time?
A2: We do not have any specific criteria. Processing time
depends on destination, end-user, etc.

Q3: Is there a streamlined process available for unlimited
shipments without a license or pursuant to a one-time license
(e.g., license exception, general license, project license,
bulk license, etc.)?
A3: Our bulk license allows eligible exporters to ship
controlled items, including 5-axes machine tools, for certain
destinations without individual application

Q4: What is the average processing time for obtaining such a
license? Does the license set quantitative (e.g., number,
dollar value) restrictions over a specific period? Explain.
A4: Our bulk license can be granted only for the exporters
having registered its Internal Compliance Program with METI.
If the applicant provides necessary documents, including ICP
registration, it would not take much time to process the
application. We do not set quantitative restrictions over a
specific period.

Q5: Is there a deadline for processing licenses?
A5: No, we do not set a deadline for processing.

Q6: Is licensing handled by a single government agency or is
it an interagency process?
A6: Licensing process is handled solely by the Ministry of
Economy, Trade and Industry.

Q7: Identify any known differences between the U.S. and any
export licensing systems affecting machine tools.
A7: We are not aware of any particular differences with
regard to machine tools.

Q8: Has the government placed restrictions or conditions on
the types of components or software able to be exported?
Provide examples.
A8: We control all components or software agreed by the
international export control regimes.

Q9: What export controls are there on the transfer of
controlled machine tool technology to non-WA members?
A9: We control transfer of the technology from Japanese
residents to non-Japanese residents.

Q10: If a domestic company enters into a relationship (e.g.,
joint venture, patent licensing, offset agreement) with, or
is bought by, a company in a non-WA country, do the same
export controls apply? If not, explain.
A10: Yes, the same export control applies.

Q11: What is the average processing time for obtaining a
license for technology transfer?
A11: Depends on the case.

Q12: In the last three years, identify any domestic machine
tool company with 5-axes capability that has been purchased
by a company in a non-WA member country.
A12: We are not aware of any such case.

Q13: Are there any restrictions on the sale of 5-axes
machine tool to a U.S. Government end-user or end-use (e.g.,
nuclear-related end-use)? Has an export ever been denied?
A13: Under Japanese legislation, exporters should obtain the
license to export controlled items to any countries including
the United States. We are not aware of any denial of
application for export of 5-axis machine tool to U.S.
Government related end-user.

Q14: What incentives does the government provide to enhance
the competitiveness of domestic machine tool manufacturers

(e.g., R&D, tax abatements, government assistance in
infrastructure, PPE&E expenditures, etc.)?
Q15: What incentives does the government provide to:
a. enhance the skills of domestic machinists (e.g.,
apprenticeship programs, scholarships), and
b. help retain these machinists in the local work force

A14 and A15: We, as the export control authority, are not
able to answer the questions.

SCHIEFFER

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