I hereby promulgate the Foreign Trade Fund Special Account Law.
Signed:HIROHITO, Seal of the Emperor
This thirteenth day of the twelfth month of the twenty-second year of Showa (December 13, 1947)
Prime Minister KATAYAMA Tetsu
Foreign Trade Fund Special Account Law
Art.1. The Foreign Trade Fund is established and in order to administer the Accounting thereof separately from that of the General Account, a Special Account is provided for.
Art.2. The Minister of Commerce and Industry shall manage the present Account in accordance with the provisions of laws and ordinances.
Art.3. The Foreign Trade Fund shall be constituted of the Trade Fund of Article 2 of Law No.53 of 1945 and 950 million yen transferred from the General Account.
In case there arises deficit in the Foreign Trade Fund, borrowing may be made from the Deposit Bureau, Ministry of Finance or from the Bank of Japan, or accommodation bill may be drawn on the burden of the present Account for making good the above deficit, provided that the amount thereof shall not exceed ten billion yen.
Borrowing and accommodation bill of the preceding paragraph shall be redeemed within a year.
Art.4. The Foreign Trade Fund may be used for the purposes enumerated in the attached table No.1 as well as for meeting claims arising from foreign trade commodities and transactions thereupon.
The Government may cause the Bank of Japan to take charge of the operation business of the Foreign Trade Fund.
Art.5. In case there arises profit on the profit and loss account of the Foreign Trade Fund such profit shall be carried over into the revenue of the current fiscal year and in case of loss, such loss shall be covered from the expenditure of the current fiscal year, provided that, in case the expenditure estimate on this account for the current fiscal year for covering losses is short of the amount to cover the loss, the shortage concerned shall be covered in the following fiscal year.
A Cabinet Order shall provide for the method of accounting of profit or loss of the preceding paragraph.
Art.6. The revenue of the present Account shall be profit of the previous Article, borrowing of paragraph 1 of Article 7, transfer from the General Account of paragraph 1 of Article 13 and accessary sundry receipts. The expenditure thereof shall be particular expenses for custody and disposition of foreign trade commodities to be prescribed by an order, business expenses, commissions on fund operation, redemption of borrowing of Article 7, transfer into the General Account of Article 13, interest on borrowing and accommodation bill, deficit-covering of the previous Article and other sundry expenses.
Art.7. In case necessary for defraying expenses of the preceding paragraph such as particular expenses for custody and disposition of foreign trade commodities, business expenses, commissions on fund operation, interest on borrowing and accommodation bill and other sundry expenses, the present Account may make borrowing from the Deposit Bureau of the Ministry of Finance or Bank of Japan on the burden thereof.
The borrowing of the preceding paragraph shall be redeemed within a year.
Art.8. The Minister Finance shall manage the business of borrowing, accommodation bill, their redemption etc. of Article 3, paragraph 2 and paragraph 1 of the preceding Article.
Art.9. Sums for the redemption of and interest payment on the borrowing of Article 7, paragraph 1, for the interest payment on borrowing or accommodation bill of Article 3, paragraph 2 or Article 7, paragraph 1 and for sundry expenses concerning drawing and redemption of accommodation bill shall be transferred in each fiscal year into the Special Account for Debt Consolidation Fund.
Art.10. The Minister of Commerce and Industry shall prepare in each fiscal year the detailed estimate of revenue and expenditure and serve the same to the Minister of Finance.
Art.11. The estimate of revenue and expenditure of the present Account shall be classified into titles and items according to the nature of revenue and purpose of expenditure.
Art.12. The Cabinet shall prepare in each fiscal year the estimate of the present Account and submit it to the Diet together with that of the General Account.
The following documents shall be attached to the estimate of the preceding paragraph:
1. Detailed estimate of revenue and expenditure.
2. Profit and loss statement, balance sheet and inventory of the fiscal year before preceding.
3. Estimated profit and loss statement and estimated balance sheet of the previous and current fiscal year.
4. Operating program of the Foreign Trade Fund of the current fiscal year.
Art.13. In case there arises surplus do the profit and loss account of the present Account, such surplus shall be transferred into the revenue of the General Account and in case of deficit, such deficit shall be covered from the expenditure of the General Account, provided that in case the expenditure estimate on this account for the current fiscal year to be transferred is short of the amount to be transferred or the expenditure estiate on the General Account for the current fiscal year for covering deficits is short of the amount to be covered, the shortage concerned shall be transferred or covered respectively in the following fiscal year.
Art.14. The Minister of Commerce and Industry shall prepare in each fiscal year the detailed settlement of revenue and expenditure of the present Account with the same classification as that of the detailed estimate thereof and serve the same to the Minister of Finance.
Art.15. The Cabinet shall prepare in each fiscal year the settlement of revenue and expenditure of the present Account and submit it to the Diet together with that of the General Account.
Following documents shall be attached to the settlement of the preceding paragraph:
1. Detailed settlement of revenue and expenditure;
2. Profit and loss statement, balance sheet and inventory of the current fiscal year;
Art.16. Article 34 of the Public Finance Law and Articles 11, 12 and 14 of the Account Law shall apply mutatis mutandis to the operation of the Foreign Trade Fund.
Art.17. Matters necessary for the enforcement of the present Law shall he provided for by a Cabinet Order.
Supplementary Provisions:
Art.18. The present Law shall be put in from December 15.1947, provided that the provisions of Article 16 shall be, as from January 1, 1948.
Art.19. During the period from fiscal year 1946 to one to be prescribed by another Law, the accounting of profit or loss of the Foreign Trade Fund of Article 4 or the old Foreign Trade Fund Special Account Law or of Article 5 of the present Law may be made not in each fiscal year limit one for the above period in accordance with the provisions of a Cabinet Order.
Art.20. During the period provided for in paragraph 1 of the preceding Article, the General Account may transfer to the Foreign Trade Funds sums equivalent to the excess, if any, of the total of the first class items over that of second class items respectively of the attached table No.2.
The making up of the Foreign Trade Fund of the preceding paragraph may be effected in each fiscal year in roughly estimated amount before final calculation of the preceding paragraph.
In case the made-up amount of rough estimate of the preceding paragraph exceeds or fall short of the final one of paragraph 1, the excess amount shall be used to cover the deficit in the Foreign Trade Fund of the following fiscal year and when excess still arises, same shall be returned to the General Account, and the deficit shall be covered from the revenue of the next fiscal year.
Art.21. The provisions of items 2 and 3 of Article 12, paragraph 2 shall not applied to each fiscal year falling under the period from, fiscal year 1947 to one prescribed under the Law of Article 19.
The provisions of items 2 and 3 of Article 15 shall not be applied to each fiscal year falling under the period from fiscal year 1947 to one prescribed under the Law of Article 19.
Art.22. The settlement for the fiscal year 1946 hall be made under the old procedures.
Annexed Table No.1
1. Commodities similar to foreign trade commodities designated by the Minister of Commerce and Industry with the deliberations with the Minister of Finance;
2. Foreign remittance or remittance from abroad under consideration other than foreign trade or others similar thereto designated by the Minister of Commerce and Industry with the deliberations with the Minsiter of Finance;
3, Deposits with the Deposits Bureau, Ministry of Finance;
4. Loan to the Foreign Trade Corporation.
Annexed Table No.2
1st Class Items
1. Amount of internal purchase of foreign trade commodities (inclusive of unpaid one);
2. Amount of disbursement of commissions of processing of state-owned imported raw materials (inclusive of unpaid one);
3. Amount of disbursement of import charges (inclusive of unpaid one);
4. Amount of purchase of commodities similar to foreign trade commodities designated by the Minister of Commerce and Industry with the deliberations with the Minister of Finance (hereinafter to be called quasi-foreign trade commodities (inclusive of unpaid one);
5. Amount of disbursement of charges on quasi-foreign trade commodities (inclusive of unpaid one);
6. Amount of disbursement against remittance from abroad under consideration other than foreign trade or others similar thereto designated by the Minister of Commerce and Industry with the deliberations with the Minister of Finance (inclusive of unpaid one);
7. The Foreign Trade Fund of Article 3, paragraph 1 and unredeemed amount of borrowing of Article 3, paragraph 2 carried forward from the previous fiscal year (as to fiscal year 1947, the Foreign Trade Fund of Article 2 of Law No.53 of 1945 and unredeemed amount of borrowing of Article 2, paragraph 2 of the old Foreign Trade Special Account Law);
8. Loan to the Foreign Trade Corporation as of the end of the current fiscal year.
2nd Class Items
1. Account of internal sale of imported commodities (inclusive of uncollected amount);
2. Amount of internal sale of quasi-foreign trade commodities (inclusive of uncollected amount);
3. Amount of receipt against foreign remittance under consideration other than foreign trade or against those similar thereto designated by the Minister of Commerce and Industry with the deliberations with the Minister of Finance (inclusive of uncollected amount);
4. Cash carried over the previous fiscal year;
5. Amount obtained from the value of foreign trade or quasi-foreign trade commodities on hand (inclusive or those on hand of the Foreign Trade Corporation) as of the end of the current fiscal year multiplied by the ratio to be fixed by an Order.
Minister of Finance KURUSU Takeo
Minister of Commerce and Industry MIZUTANI Chozaburo
Prime Minister KATAYAMA Tetsu