Japan will restrict the export of civilian goods sought by the military; Risk assessment may be mandatory for sensors and motors

The government is preparing for stricter rules on the export of civilian products that are at high risk of being used for military use. According to government sources, the main proposal under consideration would require exporters to investigate whether commercial devices and components that do not use military technology can be used by military personnel.

The government aims to revise the relevant regulation by the end of the year, in light of countries such as Russia, which continues its aggression in Ukraine and diverts more civilian goods to military use.

The government plans to accelerate the drafting of concrete measures, while the Industrial Structure Council, an advisory body to the Minister of Economy, Trade and Industry, would issue a report in support of stricter export controls.

The government currently enforces two types of regulations under the Foreign Trade and Foreign Trade Acts. One of these is a ‘list control’, which restricts the export of listed goods – mainly sensitive machinery that is at high risk of being used for weapons of mass destruction. The other is a ‘catch-all control’, which regulates the export of a wide range of civilian goods that are not on the export control list but could be used for weapons of mass destruction or conventional weapons.

The government intends to strengthen the catch-all control on conventional weapons. It is believed that Russia is adapting many civilian goods, such as drones and satellite communications equipment, to military use. These products would have a significant impact on the war, leading the government to believe that urgent action is needed.

A key role in these controls is played by export licenses. Currently, export licenses are only required when a request is made by the Minister of Economy, Trade and Industry due to a risk of military use, leaving the risk assessment for other products to the exporting company.

The government is considering making assessments mandatory for technologies such as 3D printers that are widely sold on the market and can be used by military personnel. It is also considering allowing companies that learn their technology can be used to make conventional weapons to apply for export licenses.

However, because this will have significant implications for business, the government plans to limit the items to be assessed to those that pose a high safety risk, such as sensors and motors. The government wants to reduce the burden on companies by drawing up criteria to assess whether products have a high risk of being used for military use.