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2007 Assessment

Japan: Integrity Indicators Scorecard

Japan: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
67	Are business licenses available to all citizens?	100
68	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	100
69	Does government effectively enforce basic health, environmental, and safety standards on businesses?	92

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

67a: In law, anyone may apply for a business license.

Score:

YES

Comments: Japanese business license administration depends on the category of business. Applicants must apply to the proper ministry in order to acquire the business license.

References: The Administrative Procedure Act (Act No.88 of 1993). [ LINK ]

67b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments: If the application is rejected, applicants can appeal administrative decisions by means of the Administrative Procedure Act.

References: The Administrative Procedure Act (Act No.88 of 1993). [ LINK ] The Administrative Complaint Review Act (Act No. 160 of 1962).

67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments:

References: Media reports. Academic, policy or professional studies. Government studies. Index of Economic Freedom (Japan):. [ LINK ] [ LINK ] Djiankov, S, R., L. Porta, F. Lopezde-Silanes, and A. Shleifer (2002), "The Regulation of Entry," Quarterly Journal of Economics, 117, 1-37.

67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments: As usual, applicants for business licenses should submit certified documents made by the administrative scrivener. The documentation preparation fee is quite reasonable.

References: Media reports. Academic, policy or professional studies. Government studies. Index of Economic Freedom (Japan). [ LINK ] Japan Federation of administrative scriveners' Association Web Page (Japanese only). [ LINK ]

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments: Japanese public health standards already attain a high standard, and the public has accessibility to information. The public health issue is under the jurisdiction of the Ministry of Health, Labor and Welfare.

References: Industrial Safety and Health Act (Act No.57 of 1972). [ LINK ] Japan International Center for Occupational Safety and Health News Letter. [ LINK ]

68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

Comments: The Japanese government also adheres to the several agreements of international environmental standards, such as the Kyoto Protocols.

References: The Basic Environmental Law (Law No.91 of 1993). [ LINK ]policy/basic/index.html" target="_blank">[ LINK ] Assorted environmental laws by Ministry of the Environment. http://www.env.go.jp/en/laws/

68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

Comments: The public safety issue is under the jurisdiction of the Ministry of Health, Labor and Welfare.

References: Industrial Safety and Health Act (Act No.57 of 1972). [ LINK ] Japan International Center for Occupational Safety and Health News Letter. [ LINK ]

Does government effectively enforce basic health, environmental, and safety standards on businesses?

69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: For example, Japanese government took measures to cope with the bird flu situation very quickly.

References: Media reports. Academic, policy or professional studies. Government studies. International organization studies. CIA: The World Fact Book (Japan). http;//www.cia.gov/library/publications/the-world-factbook/geos/ja.html Industrial Safety and Health Act (Act No.57 of 1972). [ LINK ] Japan International Center for Occupational Safety and Health News Letter. [ LINK ]

69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: Under the Basic Environmental Law, Japan attains high standard criteria of the public environments.

References: Media reports. Academic, policy or professional studies. Government studies. The Basic Environmental Law (Law No.91 of 1993). [ LINK ]policy/basic/index.html" target="_blank">[ LINK ] Assorted environmental laws by Ministry of the Environment. http://www.env.go.jp/en/laws/

69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments: Foreign nationals working legally in Japan are covered under the Labor Standards and other related laws. Especially in the manufacturing industry, there exists a large number of illegal foreign laborers. Therefore, these manufacturers cannot meet the public health standards outlined in these government guidelines.

References: Media reports. Academic, policy or professional studies. Government studies. International organization studies. Industrial Safety and Health Act (Act No.57 of 1972). [ LINK ] Japan International Center for Occupational Safety and Health News Letter. [ LINK ] The 16th GISPRI Symposium (2006). "How the 21st century Japanese society accepts foreigners." Tokyo, UN University. [ LINK ] Ministry of Health, Labor and Welfare Web Page. [ LINK ] "For Foreign Nationals Wishing to Work in Japan." [ LINK ]