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Christ the King College of Science and Technology

Jaysonville 2 Putatan, Muntinlupa City

Socio-Economic
and
Political Profile

a. Population size, growth and composition

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Population
2014 estimate
126,434,964
2010 census
128,056,026
Density
337.1/km2
873.1/sq mi

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


population

living

on Honsh.

Japanese

society

is linguistically

and

culturally

homogeneous, composed of 98.5% ethnic Japanese, with small populations of foreign


workers. Zainichi Koreans, Zainichi Chinese, Filipinos, Brazilians mostly of Japanese
descent, and Peruvians mostly of Japanese descent are among the small minority
groups in Japan. In 2003, there were about 134,700 non-Latin American Western and
345,500 Latin American expatriates, 274,700 of whom were Brazilians (said to be
primarily Japanese descendants, or nikkeijin, along with their spouses), the largest
community of Westerners.
The most dominant native ethnic group is the Yamato people; primary minority
groups include the indigenous Ainu and Ryukyuan peoples, as well as social minority
groups like the burakumin. There are persons of mixed ancestry incorporated among
the Yamato, such as those from Ogasawara Archipelago. In spite of the widespread
belief that Japan is ethnically homogeneous (in 2009, foreign-born non-naturalized
workers made up only 1.7% of the total population), also because of the absence of
ethnicity and/or race statistics for Japanese nationals, at least one analysis describes
Japan as a multiethnic society, for example, John Lie. However, this statement is
refused by many sectors of Japanese society, who still tend to preserve the idea of
Japan being a monocultural society and with this ideology of homogeneity, has
traditionally rejected any need to recognize ethnic differences in Japan, even as such
claims have been rejected by such ethnic minorities as the Ainu and Ryukyuan people.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Former Japanese Prime Minister Tar As has once described Japan as being a nation
of "one race, one civilization, one language and one culture".
The changes in demographic structure have created a number of social issues,
particularly a potential decline in workforce population and increase in the cost of social
security benefits like the public pension plan. A growing number of younger Japanese
are not marrying or remain childless. In 2011, Japan's population dropped for a fifth
year, falling by 204,000 people to 126.24 million people. This was the greatest decline
since at least 1947, when comparable figures were first compiled. This decline was
made worse by the March 11 earthquake and tsunami which killed nearly 16,000 people
with approximately another 3,000 still listed as missing.
Japan's population is expected to drop to 95 million by 2050, demographers and
government planners are currently in a heated debate over how to cope with this
problem. Immigration and birth incentives are sometimes suggested as a solution to
provide younger workers to support the nation's aging population. Japan accepts a
steady flow of 15,000 new Japanese citizens by naturalization ( ) per year.
According

to

the UNHCR,

in

2012

resettlement, while the US took in 76,000.

Japan

accepted

just

18

refugees

for

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Rank

Name

Population

Tokyo

8,949,447

Yokohama

3,689,603

Osaka

2,666,371

Nagoya

2,263,907

Sapporo

1,914,434

Kobe

1,544,873

Kyoto

1,474,473

Fukuoka

1,463,826

Kawasaki

1,425,678

10

Saitama

1,222,910

11

Hiroshima

1,174,209

12

Sendai

1,045,903

13

Kitakyushu

977,288

14

Chiba

962,130

15

Sakai

842,134

16

Niigata

812,192

17

Hamamatsu

812,192

18

Kumamoto

734,294

19

Sagamihara

717,561

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

20

Shizuoka

716,328

b. Gross National Product

agriculure and mining; 2% construction; 4%


trade,transportation and utilities; 17%
government; 13%
education, health and other services; 19%
manufacturing; 10%
professional and technical services; 9% information; 6%
real estate ; 14% finance and insurance; 6%

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

c. Per capita income


Japan GDP per capita
The Gross Domestic Product per capita in Japan was last recorded
at 37432.91 US dollars in 2013. The GDP per Capita in Japan is
equivalent to 296 percent of the world's average. GDP per capita in Japan
averaged 25135.01 USD from 1960 until 2013, reaching an all-time high of
37432.91 USD in 2013 and a record low of 7079.44 USD in 1960. GDP
per capita in Japan is reported by the World Bank.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

d. Balance of payment

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

e. Industrial structure
Transformation of the industrial structure in Japan
While the difference between the traditional balance of trade and that with
value added suggests that trade and industrial structures in East Asia are
becoming more complex, it can also be confirmed through the TiVA that the
industrial structure in Japan has also been transformed. Figure 3 shows the
percentages of value added in the export goods created in each industry in
Japan that can be attributed to the service industry in 2005 and 2009. For
example, in the case of the electrical machinery industry, approximately 30% of
the value added included in export goods is from the service industry.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Comparing these percentages in 2005 and 2009 shows that the service
industry's contribution to exports has increased mainly in the processing and
assembly-type manufacturing industries. This means that the service industry's
contribution to exports has been increasing, and suggests that Japan's domestic
industrial structure has been changing.

f. Cultural attributes
Traditional aburatorigami is made from only the finest grade of the blotting
paper abaca leaf, rather than pulp or rice paper. Although sometimes known
as Manila hemp, Cebu hemp, or Davao hemp, the abaca plant is not related to
true hemp. The Bureau of Fiber and Inspection Service defines a total of 15
grades of abaca, the highest of which are derived from the leaf sheaths located
closest to the center of the abaca stem.
Aburatorigami is essentially a by-product from a traditional craft process that
is deeply rooted in Japanese culture, effectively using material that might
otherwise be thrown away. After aburatorigami is used, it can be composted and
degraded naturally back into the earth. No oil-based chemicals are used in its
production. As a result, aburatorigami has relatively low environmental impacts

g. Climatic conditions
The climate of Japan is predominantly temperate, but varies greatly from
north to south. Japan's geographical features divide it into six principal climatic
zones: Hokkaido, Sea of Japan, Central Highland, Seto Inland Sea, Pacific
Ocean, and Ryky Islands. The northernmost zone, Hokkaido, has a humid
continental

climate with

long,

cold

winters

and

very

warm

to

cool

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

summers. Precipitation is not heavy, but the islands usually develop deep
snowbanks in the winter.
In the Sea of Japan zone on Honshu's west coast, northwest winter winds
bring heavy snowfall. In the summer, the region is cooler than the Pacific area,
though it sometimes experiences extremely hot temperatures because of
the foehn wind. The Central Highland has a typical inland humid continental
climate, with large temperature differences between summer and winter, and
between day and night; precipitation is light, though winters are usually snowy.
The mountains of the Chgoku and Shikoku regions shelter the Seto Inland
Seafrom seasonal winds, bringing mild weather year-round.
The Pacific coast features a humid subtropical climate that experiences
milder winters with occasional snowfall and hot, humid summers because of the
southeast seasonal wind. The Ryukyu Islands have a subtropical climate, with
warm winters and hot summers. Precipitation is very heavy, especially during the
rainy season.
The average winter temperature in Japan is 5.1 C (41.2 F) and the
average summer temperature is 25.2 C (77.4 F). The highest temperature ever
measured in Japan40.9 C (105.6 F)was recorded on August 16, 2007. The
main rainy season begins in early May in Okinawa, and the rain front gradually
moves north until reaching Hokkaido in late July. In most of Honshu, the rainy
season begins before the middle of June and lasts about six weeks. In late
summer and early autumn, typhoons often bring heavy rain.

h. Political system

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Japan is a constitutional monarchy where the power of the Emperor is


very limited. As a ceremonial figurehead, he is defined by the constitution as "the
symbol of the state and of the unity of the people." Power is held chiefly by
the Prime Minister and other elected members of the Diet, while sovereignty is
vested

in

the

Japan; Naruhito,

Japanese
Crown

people.

Prince

of

Akihito is

the

current

Japan, stands as next

Emperor
in

line

of
to

the Chrysanthemum Throne.


Japan's legislative organ is the National Diet, a bicameral parliament. The
Diet consists of a House of Representatives with 480 seats, elected by popular
vote every four years or when dissolved, and a House of Councilors of 242 seats,
whose popularly elected members serve six-year terms. There is universal
suffrage for adults over 20 years of age, with a secret ballot for all elected
offices. The Diet is dominated by the social liberal Democratic Party of Japan and
the conservative Liberal Democratic Party (LDP). The Prime Minister of Japan is
the head of government and is appointed by the Emperor after being designated
by the Diet from among its members. The Prime Minister is the head of the
Cabinet, and he appoints and dismisses the Ministers of State. Following the
LDP's

landslide

victory

in

the 2012

general

election, Shinz

Abe replaced Yoshihiko Noda as the Prime Minister on December 26, 2012 and
became the country's sixth prime minister to be sworn in 6 years. Although the
Prime Minister is formally appointed by the Emperor, the Constitution of Japan
explicitly requires the Emperor to appoint whoever is designated by the Diet.
Historically

influenced

by Chinese

law,

the Japanese

legal

system developed independently during the Edo period through texts such
as Kujikata Osadamegaki. However, since the late 19th century the judicial
system has been largely based on the civil law of Europe, notably Germany. For
example, in 1896, the Japanese government established a civil code based on a

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

draft of the German Brgerliches Gesetzbuch; with postWorld War II


modifications, the code remains in effect. Statutory law originates in Japan's
legislature and has the rubber stamp of the Emperor. The Constitution requires
that the Emperor promulgate legislation passed by the Diet, without specifically
giving him the power to oppose legislation. Japan's court system is divided into
four basic tiers: the Supreme Court and three levels of lower courts. The main
body of Japanese statutory law is called the Six Codes.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Scope of
International
Marketing
Research

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

I.

Size and Trend of the Market

a. Indigenous production volume and growth

Abaca (Musa textiles) is a plant related to banana, the leaves of which provide
some of the strongest natural fibres used by man. It is indigenous to the
Philippines, and grows well particularly in the provinces of Bicol, Samar and
Leyte. Abaca is also of the few cash crops that can grow with relatively little input
compared to other crops, in steep forest areas.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

From 2001 through 2010, production of abaca fiber averaged 65,701 mt


per year and had been decreasing at a minimal rate of 0.8% per annum caused
by the devastating typhoons in 2006 coupled with abaca viral diseases that
continued to affect the plantations as well as the dampened foreign demand
brought about by the global economic recession beginning in the latter part of
2008, considered as the most severe downturn since the Great Depression in the
1930s. Production reached its peak in 2008 at 77,387 mt as outputs of all
producing regions, particularly Bicol, Davao Region and Caraga, substantially
increased during the period. This was primarily the effect of the incremental
production from the abaca plantations established in 2005 and 2006 under
FIDAs program Goal I Development of New Agri-Business Lands and the
continued strong demand and attractive prices offered for the fiber by local
traders, processors/manufacturers and exporters. The abaca industry, however,
suffered a setback in 2009 when fiber yield slumped to its lowest level of 54,584
mt due to the weakened market demand and falling prices as a consequence of
the worldwide financial crisis.
During the decade, Eastern Visayas remained as the top abaca-producing
region, contributing an average of 23,564 mt or 35.9% to the annual average
production. Bicol followed with an annual average of 19,670 mt or 29.9% share
while Davao Region, which supplied 13.4% or 8,783 mt, ranked third during the
ten-year period under review. Starting 2009, Bicol emerged as the biggest
producer of abaca, outranking Eastern Visayas which abaca areas were badly
affected by viral diseases such as bunchy top, mosaic and bract mosaic.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

From among the abaca-producing provinces, Catanduanes remained as


the biggest producer followed by Leyte.

The top ten producers with the

corresponding output and share to total production in 2010 were as follows:

PROVINCE
Catanduanes
Leyte
Northern Samar
Davao Oriental
Surigao del Sur
Davao del Sur
Sulu
Bukidnon
Lanao del Sur
Southern Leyte

VOLUME (mt)
18,971
7,089
3,959
3,300
3,105
2,994
2,364
1,993
1,665
1,647

b. Direction and composition of foreign trade

%SHARE
33.2
12.4
6.9
5.8
5.4
5.2
4.1
3.5
2.9
2.9

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Each country tries to increase the availability of goods and services


to its population through purchasing the shortage from other
countries.

It tries to sell it surplus to other countries.

Each country has its own currency: exporter country would not
accept the national currency of the importer.

Either owns currency or the international accepted currency like


Dollar, pounds, Euro. Etc...

Development of the Economy

Meeting the shortages

Imports for better living standards

Improving Quality of production:

Growth of the economy production Employment: Expansion:


Demand of other goods: Utilization of resources to source of
foreign exchange.

c. Consumption pattern and trends marketing planning


its traditionally the means by which an organization communicates
to connect with, and engages its target audience to convey the value of
and ultimately sell its products and services.

d. Market segmentation planning

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Basic strategies to identify segments and select a target market. As


people and communities grow more diverse, it becomes risky for an
organization to offer the same marketing mix to such different consumers.
Market segmentation provides businesses with the possibility of
customizing a unique set of elements known as the 4ps (Product, price,
place and promotion) for specific target markets.
e. Demand trends
Production of abaca grew by more than a fourth in the first six
months of the year on the back of higher prices and stronger demand form
the Philippines traditional markets abroad.
Domestic processors consumed an average of 50,592 mt or 77.0%
of the countrys average yearly production of abaca fiber during the past
decade. The sectors fiber consumption level was observed to be
decreasing fairly at a rate of 1.1% per year. Abaca fiber is being processed
locally into pulp, cordage and various fibercraft items.
The pulp sector consistently remained as the growth area of the
abaca industry utilizing an average of 36,019 mt or 71.2% of the annual
average local consumption and increasing at a minimal rate of 0.8% per
annum. The pulp millers utilization level is highly dependent on the
demand for pulp by the specialty paper manufacturers abroad as abaca
pulp is the principal raw material used in the manufacture of meat and
sausage casings, tea bags, cigarette paper, currency paper and other
specialty papers. Processing of abaca pulp into specialty papers is done
in Europe, the United States and Japan instead of in the Philippines as
there is no available processing facility in the country.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

The cordage sector, on the other hand, consumed an average of


10,369 mt of abaca fiber per annum or about 20.5% of the yearly average
fiber usage of the domestic manufacturers but decreasing at a rate of
2.6% per year. Cordage and allied products have continuously been facing
stiff competition from those made of synthetics and other cheaper natural
materials.
Fiber utilization of the fibercraft processors who are mostly cottagebased, exhibited a decreasing annual rate of 11.0% and consuming an
average of 4,204 mt or 8.3% of the annual average domestic
consumption. These figures, however, may not have reflected the actual
situation in the fibercraft industry, as purchases of other fibercraft makers
were in loose form and therefore difficult to monitor. Unlike the other
sectors, the fibercraft processors are numerous, not as well-organized and
are scattered throughout the country.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

II.

Structure of competition
a. Direct competition and indirect competition
Local- Ching Bee Trading Corporation.

Country- (Ecuador) Abaca Union Del Ecuador S.A.

b. Nature of competition
Pure Competition - low barriers to entry, many choices, no business has
dominance

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Oligopoly - very similar products, few sellers, small firms follow lead of big
firms, fairly inelastic demand
c. Competitive shares of the market
The Philippines produced about 60 000 tonnes of abaca fibre, while
Ecuador produced 10 000tonnes. World production is valued at around
$30 million a year. Almost allabaca produced is exported, mainly to
Europe, Japan and the USA. Exports from the Philippines are increasingly
in the form of pulp rather than raw fibre. Eighty-five percent of the abaca
production is monopolized by the Philippines while 15% comes from
Ecuador. The abaca of the Philippines has two stong points compared to
the abaca produced by the rival country. For one, applications- and
marketability-wise, the Philippine abaca has considerable edge. Second,
quality-wise, it is more competitive and preferred than the abaca of
Ecuador.

Ecuador; 15%

Philippines; 85%

d. Competitive marketing strategies


Marketing strategy includes all basic and long-term activities in the
field of marketing that deal with the analysis of the strategic initial situation
of a company and the formulation, evaluation and selection of market-

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

oriented strategies and therefore contributes to the goals of the company


and its marketing objectives.
e. Business and commercial practices
Japanese Business Customs
An understanding of Japanese business and social practices is useful,
if not required, in establishing and maintaining successful relationships for
doing business in Japan. Indifference to local business practices can
indicate a lack of commitment on the part of the exporter, and may lead to
misunderstandings and bad feelings, which could result in the loss of
business opportunities. One should not assume that because meetings
and correspondence are carried out in English that Western social and
business norms apply.
Japanese society is complex, structured, hierarchical and grouporiented. It places strong emphasis on maintaining harmony and avoiding
direct confrontation. Japanese religious practice tends to be socially
oriented and selective rather than a matter of deep personal commitment;
ethics tend to be situational. In building relationships (which often precede
a first-time sale or an agreement) one should emphasize trust, confidence,
loyalty and commitment for the long term.
Group decision-making is important in Japan and has been
generally described as a bottom up exercise rather than top down.
Family businesses founded since WWII and smaller second-tier firms are
exceptions to this rule. However, even in the large family firms, where
decisions are made at the top, the process is usually managed so that
company members have a sense of participation. This type of group
decision making tends to be slower. Recognizing that it takes a longer

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

time to cultivate business relationships in Japan than in the United States,


U.S. business executives should not expect to make a deal in just a few
days. Consistent follow-up is vital. Likewise, U.S. business people should
recognize the importance of working with the staff level of their Japanese
counterparts and not exclusively with the executive level.
Gift giving is expected on many business occasions in Japan.
Regional U.S. gifts or company-logo gifts are appropriate. Quality is
important, but the gift does not have to be expensive. The packaging of
the gift is as important as the gift itself and should be done professionally.
In Japan, sets of four are considered unlucky (the number four is
pronounced the same as the word for death). Gifts that can be shared
among a group are appropriate.
Business travelers to Japan should make sure to bring a large
supply of business cards (with their title) when they come to Japan;
printing bilingual cards is a nice touch. Business cards are exchanged to
formalize the introduction process and establish the status of the parties
relative to each other. Japanese bow when greeting each other but will
expect to shake hands with foreign executives. A slight bow in
acknowledgment of a Japanese bow is appreciated. Japanese executives
deal on a last name basis in business relationships, and initial business
and social contacts are characterized by politeness and formality.
Business travelers visiting a Japanese firm for the first time should
be accompanied by an interpreter or bilingual assistant. Many Japanese
executives and decision-makers do not speak English, although many of
them can greet visitors in English and read English product literature
relevant to their business or industry expertise. Generally speaking,
Japanese are weaker at hearing and speaking English, and more adept at

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

reading and writing. Thus, the Japanese side in a business meeting


generally expects a visitor to bring an interpreter if they are serious about
doing business. Although the cost for hiring an interpreter can be very
high ($400 to $900 per day depending on class), bringing along an
interpreter shows that a visiting firm is serious about seeking to market
their products/services in Japan.
The first visit to a Japanese firm generally serves as a courtesy call
to introduce U.S. executives and their company, and also allows the U.S.
side to begin to evaluate a target company and its executives as potential
business partners. A request to meet only with English speaking staff can
mean missing the opportunity to become acquainted with higher-ranking
executives.
A written contract, even if less detailed than a contract between two
U.S. companies, is essential to meet legal, tax, customs and accounting
requirements. Contractual commitments are perceived as representing
long-term relationships so the terms and conditions, for example whether
to grant exclusive rights, should be considered carefully.

f. Trademarks and patents


o Name of exporting company: M.H Trading Company
o Logo:

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

III.

Rules and Regulations

a. Market entry regulations


Successful Japanese market entry needs a sales oriented understanding
of the Japanese market, an achievable 3 - 5 year business strategy and clear
cost and budget control policies. Taking the time to fully understand the
Japanese market opportunities for your products and services, putting in place a
sustainable and achievable strategy and ensuring that value will be returned from
every Yen spent, prior to "pouring concrete" in your Japanese market entry are

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

three of the key insider secrets to successfully setting up and doing business in
Japan.

Venture Japan will work with you to:

fully understand the Japanese market opportunities for your products and

services,
identify any government red-tape and regulations (import tariffs, import quotas,
approval processes, testing processes etc.) applicable to your products and

services in Japan,
identify prospective customers and complete pre-launch product evaluations,
determine the potential Japanese market value of your products and services,
identify and understand the strengths and weaknesses of your competitors in

Japan,
determine the optimal Japanese brand identity for your company, products and
services,
Determine your

optimal

presence in

Japan

(i.e. direct

sales,

distribution,

joint-

venture,
acquisition

etc.),
identify

venture partners and negotiate with them (if appropriate),


identify potential acquisition candidates and support any acquisition activities (if

appropriate),
register a Japanese branch-office or partnership (tokumei kumiai etc.), or

potential joint-

incorporate a Japanese company (kabushiki kaisha, yugen kaisha, tokutei


mokuteki kaisha etc.) on your behalf,

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

act as resident representative director, manager or managing partner (as

applicable),
locate office space that satisfies corporate image, cost and location needs and

negotiate 'best terms' on your behalf,


develop a sales process optimized to the Japanese business culture and market,
create a localized Japanese Web presence, corporate literature, sales and

technical materials and presentations,


implement a full marketing communications and public relations rollout program,
identify potential distributors, negotiate distribution agreements with them and

help to integrate them into your existing sales channel infrastructure,


(together with your financial division) implement sustainable and cost-effective
financial controls and systems that are fully compliant with both Japanese and

your head-office accounting requirements,


setup a local IT infrastructure that is fully integrated with your head-office

infrastructure,
Advise on recruitment, salary and benefits packages, recruit staff into the new

entity and help to integrate them into your corporate culture.


Venture Japan's attitude to business is aggressive and very results oriented.
Unlike typical market entry consultants, Venture Japan does not simply customize
a pro-forma report filled with meaningless statistics garnered from market analysts
or government agencies. We use our accumulated on-the-street experience of
initiating joint-development projects between Japanese customers and foreign
companies, marketing, brand management, sales and negotiation, to produce a
roadmap for your Japanese business that will get you to where you want to be
and then put our reputations on the line to helping you succeed.

b. Tariff and un-tariff barriers


Tariff
Tariffs are based on the Harmonized System - most duties are ad
valorem (per cent) based on the General Agreement on Tariffs and

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Trade (GATT) valuation system approximately cost, insurance and freight


(CIF) value (Incoterms 1990).
Japan maintains tariffs and restrictions on items, including
agricultural items, which are relevant to some Australian exporters.
Generalized preferences are granted to developing countries. A
self-assessment system designed to expedite customs clearance allows
prior calculation of duty by importers.
The Philippines and Ecuador are the main producers and exporters
of abaca and abaca products principally to the EU, the United States and
Japan. All countries have set a zero MFN duty for most products except
for cordage and ropes of abaca, where the duties range from a low of 1.9
percent for the United States to a high of 5 percent in Egypt

MFN Applied Tariffs Table 4 - Tariffs on Abaca and Abaca Products for selected major
importers
Product name

Abaca fibre

Abaca cordage

HS Code

5305.00

5607.90

China

4.8

Europe

Japan

1.7

Malaysia

1.8

Singapore

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Thailand

U.S.A

1.9

Source: WTO

Non-tariff barriers
Potential exporters to Japan should not be deterred by a widely
perceived view that the market is closed and heavily regulated. Barriers to
market access for merchandised and value added goods are mainly
informal. Examples of informal barriers include, successful entrance into
business networks, maintenance of market presence and product quality
assurance.
Formal restrictions, mostly on agricultural produce, do exist and the
Australian Government has a range of market access issues, which it
continues to work on with the Japanese Government on behalf of
Australian industry.
Import licensing may be required for some imports. Two categories exist:
1. Import Quota (IQ): Quotas set by Ministry of Economy, Trade and
Industry (METI), range from moderately to severely restrictive. Quotas
are imposed on a variety of foods including some dairy products,
seafood, cereals and grains. Importers must obtain an import quota
allocation certificate from METI, which entitles the importer to receive
an import license on application to a foreign exchange bank.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

2. Import Declaration (ID): a wide range of raw materials, semi-finished


products and manufactured goods can be imported without prior
approval from METI. Completed ID forms are freely verified by
authorized foreign exchange banks on application, prior to import.
Goods must be cleared through customs within the validity period
of the license (usually six months).
Imports from Australia, which include most fresh fruits (excluding
certain oranges, mangoes, Fuji apples, pineapples and green bananas)
are subject to restrictions.
Although there is no agreed formal definition of NTBs, in general,
NTBs refer to all non-tariff restrictions on trade in goods, services and
investment. These include border measures such as customs procedure
as well as behind-the-border measures flowing from domestic laws,
regulations and practices. Exporters of JACKS products face a number of
NTBs which often inhibits their ability to profitably engage in international
trade. These include strict packaging and labelling requirements, SPS
measures, complex and bureaucratic customs and administrative
procedures and import licensing requirements on the exports of processed
fibre products.
Fibre products that are packed in wooden crates or placed on
wooden pellets have to be quarantine treated. Up until recently methyl
bromide was used to fumigate these crates and pellets, because of its
penetrating ability, rapid action and high toxicity to a broad spectrum of
insects and pests. However, the use of methyl bromide is now banned in
many countries8. Alternative treatments are costly because more than one
chemical is needed to treat the broad spectrum of pests that need to be

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controlled to satisfy the quarantine requirements of importing countries. So


far there does not seem to be any chemical available in the market to treat
the same broad spectrum of pests as methyl bromide. A lot of confusion
has also arisen because of the different phasing out periods in the use of
methyl bromide between developed and developing countries under the
Montreal Protocol. As developed countries were required to phase out the
use of methyl bromide at the end of 2005, while developing countries
could continue using the chemical until 2015, often shipments of fibre
products treated with methyl bromide in developing countries were not
allowed entry into developed importing countries.

c. Foreign exchange regulation


Japanese Foreign Exchange Controls The Foreign Exchange and Foreign
Trade Law of Japan, as amended, and the cabinet orders and ministerial
ordinances thereunder, or the Foreign Exchange Regulations, govern certain
matters relating to the acquisition and holding of shares by non-residents and
foreign investors.
The Foreign Exchange Regulations define non-residents as:

Individuals who are not resident in Japan; or

CorporationswhoseprincipalofficesarelocatedoutsideJapan.Generally,

branches

and other offices of nonresident corporations located within Japan are regarded
as residents of Japan, and branches and other offices of Japanese corporations
located outside Japan are regarded as non-residents of Japan.

The Foreign Exchange Regulations define foreign investors as:

Christ the King College of Science and Technology


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Individuals who are not resident in Japan;

Corporations organized under the laws of foreign countries or whose principal


offices are located outside Japan; or

Corporations, not less than 50% of the voting rights of which are held, directly or
indirectly, by individuals and/or corporations falling within the definition of foreign
investors above or a majority of the directors or other officers (or directors or
other officers having the power of representation) of which are non-resident
individuals.
Acquisition of Equity Securities
In general, the acquisition of shares of a listed corporation by a
non-resident of Japan from a resident of Japan may be made without any
restriction, except as mentioned below. However, a resident of Japan who
transfers units to a non-resident of Japan must file a report to the Minister
of Finance following the transfer of units to the nonresident of Japan,
unless:

the consideration for the transfer is 100 million or less; or

the transfer is made through a bank, securities company or


financial futures trader as licensed under relevant Japanese laws.
If a foreign investor acquires shares of a listed corporation and, as

a result of the acquisition, the foreign investor directly or indirectly holds


10% or more of the issued shares of the relevant corporation aggregated
with existing holdings, the foreign investor is, in general, required to report
the acquisition to the Minister of Finance and any other relevant ministers
within 15 days from and including the date of the acquisition, except under

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

limited circumstances including an acquisition of shares through the


offering conducted overseas. In certain exceptional cases, prior
notification is required regarding the acquisition.

Distributions and Proceeds of Sale


Under the Foreign Exchange Regulations, distributions paid on,
and the proceeds of sales in Japan of, shares of a corporation held by
non-residents of Japan may in general be converted into any foreign
currency and repatriated abroad subject to certain exceptions .The
acquisition of shares by non-resident holders by way of a stock split is not
subject to any notification or reporting requirements.

d. Internal taxes
National Treatment on Internal Taxation and Regulation
1. The contracting parties recognize that internal taxes and other
internal charges, and laws, regulations and requirements affecting the
internal sale, offering for sale, purchase, transportation, distribution or use
of products, and internal quantitative regulations requiring the mixture,
processing or use of products in specified amounts or proportions, should

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Jaysonville 2 Putatan, Muntinlupa City

not be applied to imported or domestic products so as to afford protection


to domestic production.
2. The products of the territory of any contracting party imported
into the territory of any other contracting party shall not be subject, directly
or indirectly, to internal taxes or other internal charges of any kind in
excess of those applied, directly or indirectly, to like domestic products.
Moreover, no contracting party shall otherwise apply internal taxes or
other internal charges to imported or domestic products in a manner
contrary to the principles set forth in paragraph 1.
3. With respect to any existing internal tax which is inconsistent with
the provisions of paragraph 2, but which is specifically authorized under a
trade agreement, in force on April 10, 1947, in which the import duty on
the taxed product is bound against increase, the contracting party
imposing the tax shall be free to postpone the application of the provisions
of paragraph 2 to such tax until such time as it can obtain release from the
obligations of such trade agreement in order to permit the increase of such
duty to the extent necessary to compensate for the elimination of the
protective element of the tax.
4. The products of the territory of any contracting party imported
into the territory of any other contracting party shall be accorded treatment
no less favourable than that accorded to like products of national origin in
respect of all laws, regulations and requirements affecting their internal
sale, offering for sale, purchase, transportation, distribution or use. The
provisions of this paragraph shall not prevent the application of differential
internal transportation charges which are based exclusively on the

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economic operation of the means of transport and not on the nationality of


the product.
5. No contracting party shall establish or maintain any internal
quantitative regulation relating to the mixture, processing or use of
products in specified amounts or proportions which requires, directly or
indirectly, that any specified amount or proportion of any product which is
the subject of the regulation must be supplied from domestic sources.
Moreover, no contracting party shall otherwise apply internal quantitative
regulations in a manner contrary to the principles set forth in paragraph 1.*
6. The provisions of paragraph 5 shall not apply to any internal
quantitative regulation in force in the territory of any contracting party on
July 1, 1939, April 10, 1947, or March 24, 1948, at the option of that
contracting party; Provided that any such regulation which is contrary to
the provisions of paragraph 5 shall not be modified to the detriment of
imports and shall be treated as a customs duty for the purpose of
negotiation.
7. No internal quantitative regulation relating to the mixture,
processing or use of products in specified amounts or proportions shall be
applied in such a manner as to allocate any such amount or proportion
among external sources of supply.
8. (a) The provisions of this Article shall not apply to laws,
regulations or requirements governing the procurement by governmental
agencies of products purchased for governmental purposes and not with a
view to commercial resale or with a view to use in the production of goods
for commercial sale.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

(b) The provisions of this Article shall not prevent the payment of
subsidies exclusively to domestic producers, including payments to
domestic producers derived from the proceeds of internal taxes or charges
applied consistently with the provisions of this Article and subsidies
affected through governmental purchases of domestic products.
9. The contracting parties recognize that internal maximum price
control measures, even though conforming to the other provisions of this
Article can have effects prejudicial to the interests of contracting parties
supplying imported products. Accordingly, contracting parties applying
such measures shall take account of the interests of exporting contracting
parties with a view to avoiding to the fullest practicable extent such
prejudicial effects.
10. The provisions of this Article shall not prevent any contracting
party from establishing or maintaining internal quantitative regulations
relating to exposed cinematograph films and meeting the requirements of
Article IV
e. Trademarks and patents regulation
Japanese trademark law is mainly enacted by the Trademark Act (
Shhy-h?). Under this Act, only registered trademarks establish
a "trademark" right (Article 18), and examination procedure is
necessary for trademarks to be registered (Article 14). On the other
hand, the protection for unregistered trademarks is provided by the
Unfair Competition Prevention Act ( Fusei kys bshih?).

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Equality for both Japanese and foreign nationals


Japan's Trademark Law offers equal protection for Japanese and
foreign nationals; the same trademark registration process and conditions
apply to those residents in Japan and overseas. Therefore, by offering proper
trademark protection to people who do not currently live in Japan and
companies presently without head offices or branches in the country, Japan's
trademark system encourages future expansion into the Japanese market by
overseas businesses.

First-to-file rule
Trademarks do not have to be currently in use (either in Japan or
overseas) in order to be registered in Japan; if the trademark owner has the
intention of using the trademark in the future, it can be registered in Japan as
long as certain criteria are met. Thus, it is very important for any foreign
business that thinks it might expand into Japan at some time in the future to
consider applying for registration of trademarks in Japan before entering the
Japanese market. Note, however, that trademarks must be used within three
years after registration, or they may be nullified. Using your trademark just
once within those three years is enough to prevent your trademark rights from
being cancelled.

Trend of "New-type trademark" protection


Formerly, "New-type trademark" has not been in the scope of
protection of trademarks. However, many Japanese companies have been

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requested to protect these trademarks, and in view of the fact that these
trademarks can gain a practical use by protection, (1) Sound marks (2) Color
per se marks without delineated contours, (3) Motion marks, (4) Position
marks and (5) Hologram marks which have already been broadly protected
overseas are in the scope of protection of trademarks according to a revision
of the Trademark Law in 2014 (Date of its enforcement is still fixed).
In accordance with the present trademark laws and regulations, (1)
Motion marks, (2) Hologram marks, (3) Color per se marks without delineated
contours, (4) Position marks, (5) Sound marks, (6) Olfactory marks, (7) Touch
marks, (8) Taste marks and (9) Trade Dress are not in the scope of protection
of trademarks. However, in recent years, whether these "New-type
trademark" should be in the scope of protection of trademarks have been
debated, and a revision of Trademark Laws have been considered about this
issue.

Protection of trademarks about retailers, etc.


According to a revision of the Trademark Law in 2006 (Enforcement on
April 1, 2007), "Retail services, etc." may now be accepted as designated
services for the purpose of protection for the names of retail and wholesale
stores and the names of mail-order businesses (including online sales).
Therefore, it is now possible to register the names of stores, such as retail
outlets, as well as the names of individual products.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Similarity of trademarks
Trademarks must be unique in order to be registered; the sound, the
appearance and the meaning of every trademark must not be similar to any
other trademark, either individually or collectively.

1. Sound
This refers to the sound of the trademark as well as the pronunciation
of any characters used therein. Going by the standard of English language
education in Japan, it can reasonably be assumed that most Japanese
people will be able to understand the pronunciation of English words or
Japanese words written in alphabetical characters correctly. However, the
same cannot be said for words of other languages. Therefore, in order to
avoid confusion, it is preferable to add Japanese kana characters showing
how to pronounce the trademarks consisting of words in foreign languages
other than English to ensure that the proper pronunciation is protected.

2. Meaning
This refers to the meaning inferred from the characters that
comprise the trademark. In the case of a trademark in a foreign script, the
words "Black Cat", for example, would conjure up the image of a black cat
in the minds of Japanese people, however the German words "Schwarze
Katze" or the Spanish words "Gato Negro" would not immediately spark
the appropriate feline image in people's minds, and it is possible that they
are recognized as coined words which do not have a specific meaning.
Therefore it is possible that such trademarks could not exclude other

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

trademarks which do cause people to imagine a black cat if registered as


trademarks. In this situation, it may be better to obtain separate protection
for a trademark which consists of a Japanese translation of the original
foreign-language phrase.
3. Appearance
Trademarks consisting of characters that Japanese people are
unable to recognize as written characters, such as Mongolian or Hindi, are
treated as trademarks consisting of devices. This means that the
trademark owner is unable to reap any benefits that a trademark
consisting of written characters may have, so one idea is to apply for a
separate registration of trademarks consisting of a Japanese translation or
Japanese characters denoting the pronunciation of the foreign-language
phrase.

Japanese patent law is based on the first-to-file principle and is mainly


given force by the Patent Act ( Tokkyoh) of Japan. Article 2
defines an invention as "the highly advanced creation of technical ideas
utilizing the law of nature".
The definitive version of Japanese law is the text in
the Japanese language. An official English-language translation of the
law does not exist, but the Ministry of Justice Japan has the website
"Japanese Law Translation, where one can search for Japanese laws
and their unofficial English translation. Intellectual property (IP) laws
such as Patent Act, Copyright Act, Trademark Act, Design Act and
Unfair Competition Prevention Act are included there. In addition,

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

the Industrial Property Digital Library (IPDL) offers public access to IP


Gazettes of the Japan Patent Office (JPO) free of charge through
internet. Reliable information on Japanese IP law in English is also
provided by the websites of Intellectual Property High Court, Japan
Patent Office, "Transparency of Japanese Law Project", European
Patent Office, and Institute of Intellectual Property (IIP) of Japan

f. Regulations on marketing practices or promotional methods


The provisions relating to promotional marketing practices regulate
the nature and administration of those marketing techniques which involve
the provision of direct or indirect additional benefits, usually on a
temporary basis, designed to make goods or services more attractive to
purchasers. The provisions cover, amongst others, such forms of
promotion as:

premium offers,

reduced price and free offers,

the distribution of vouchers, coupons and samples,

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

personality promotions,

charity-linked promotions,

Prize promotions

Protection of Consumers
Promoters should have proper regard for normal safety
precautions. Promotional products and samples should be distributed in
such a way as to avoid the risk of harm to consumers. Special care should
be taken when sales promotions are addressed to children or where
products intended for adults may fall into the hands of children. Literature
accompanying promotional items should contain any necessary safety
warnings.

Suitability
Promoters should not offer promotional products which are of a
nature likely to cause offence or products which, in the context of the
promotion, may reasonably be considered to be socially undesirable.
Availability
Promoters should be able to demonstrate that they have made a
reasonable estimate of the likely response and that they are capable of
meeting that response. This applies in all cases except prize promotions,
where the number of prizes to be awarded should be made clear to
participants.

Christ the King College of Science and Technology


Jaysonville 2 Putatan, Muntinlupa City

Quality
Promoters should ensure that promotional products meet
satisfactory standards of safety, durability and performance in use.Where
appropriate, such matters as guarantees and aftersales service should be
clearly explained.
Presentation
The presentation of sales promotions and the associated publicity
should not mislead consumers.

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