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Japan: Clarification of "Deemed Export" Control in Security Trade Control

In Japan, security trade control is governed by the Foreign Exchange and Foreign Trade Control Law, and technical information is also subject to these regulations. It is important to know whether you are subject to these regulations or whether you can take exception to them when exchanging information on patent applications prior to their publication.

 

Recently, there is a trend to tighten regulations on the outflow of technical information that may be applied to sensitive technology such as military affairs, as shown by the tightening of regulations in the Economic Security Bill that is currently being drafted.

 

According to the document as below, currently "foreign nationals who have been in Japan for 6 months or who work in domestic offices" are treated as residents and are not subject to 'deemed' export controls. This does not address the concern of sensitive technology leakage from residents under the influence of foreign countries. This was a problem.

 

Therefore, it is clarified that even the provision of sensitive technology to a resident is subject to the "deemed export" control if it falls under the situation where the said resident is strongly influenced by the said non-resident (specified category) to the extent that it is considered to be virtually one and the same as a transaction in which technical information is provided to an entrepreneur. This is the first time that an international agreement has been concluded. If you would like to see the specific new categories, please refer to "経済産業省:「みなし輸出」管理の明確化について" below.

 

経済産業省:「みなし輸出」管理の明確化について

https://www.meti.go.jp/policy/anpo/law_document/minashi/meikakukanitsuite.pdf

 

For example, even if a professor is hired at a Japanese university, if this professor has an employment contract with a foreign university and holds a concurrent position as a professor, this professor will be subject to deemed export control under this clarificaion. Even if people are a resident of Japan, it will be required to the applicability of "deemed export" control.

 

This revision of the ministerial ordinance will take effect on May 1, 2022.

 

Note: For past articles on the drafted Economic Security Bill and its secret patents, please click here (in Japanese).

 

 

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