Chapter I General Provisions

(Establishment) Article 1. For the purpose of securing businesslike operation and development of the postal services, a Special Account shall be established as separated from the General Account.

(Scope of the Postal Services) Article 2. In this Law, "the postal services" shall mean mail services;postal savings, postal order and postal transfer savings services;post office life insurance and post office annuities services;services entrusted by the Ministry of Telecommunications;services related to the sale of revenue stamps and businesses related to payment of annual and lump sum pensions, receipt and payment of national treasury;and other businesses incidental thereto.

(Management) Article 3. This Account shall be managed by the Minister of Postal Serving in accordance with laws and ordinances.

(Classification of Accounts) Article 4. In this Account, the balance-sheet accounts and the profit and loss accounts shall be established, in order to show increase, decrease and change of assets and capital together with profit and loss of the postal services. 2 The balance-sheet accounts shall be classified into the asset accounts and the capital accounts. The profit and loss accounts shall be classified into the revenue accounts and the expense accounts. 3 Besides the accounts referred to in the preceding two paragraphs, in order to show the process of accounting, the construction accounts, the repair-shop accounts and other necessary accounts may be established.

(Principle of Accounting) Article 5. In this Account, the accounting shall be maintained on an actual accounting basis of increase, decrease and change of assets, regardless of cash receipt and payment. 2 Whether or not the fact of increase, decrease and change of assets mentioned in the preceding paragraph applies to one or another fiscal year shall be determined by the standards established by cabinet order.

(Computation of Costs) Article 6. In this Account, the procedures with regard to cost computation necessary to the business fo postal services shall be established by the Minister of Postal Services.

Chapter II Capital and Assets

(Capital and the Classification thereof) Article 7. In this Account, the capital represents the amount equal to the value of assets belonging to this Account. 2 The capital referred to in the preceding paragraph shall be classified into three groups, the owned capital, the reserve for depreciation, and the borrowed capital. The owned capital shall be sub-divided into the capital proper, the capital transferred from other Accounts, and the reserves. The borrowed capital shall be sub-divided into public bonds, borrowings and other liabilities. 3 The capital proper represents the amount of the capital succeeded to this Account from the Communication Enterprise Special Account. 4 The amount of the capital transferred to this Account from other Accounts represents the amount appropriated for increasing the fixed assets of this Account. 5 The reserves represent the accumulated amount of the reserves referred to in Article 36 paragraph 1. 6 The reserve for depreciation represents the accumulated amount of the reserve for depreciation for the assets belonging to this Account (the amount deducted, if any, the retransferred amount referred to in Article 11 paragraph 2). 7 The borrowed capital represents the amount of public bonds, borrowings, temporary borrowings, accommodation notes, accounts payable, advances received, cash in custody, and other similar credits to this Account.

(Assets and the Classification thereof) Article 8. The assets of this Account shall be classified into the fixed assets, the working assets and the currents assets. 2 The fixed assets represent land, buildings, structures, water-craft, plants under construction;and machines and apparatus, patent rights and other similar franchises, as designated by the Minister of Postal Services. 3 The working assets represent the articles in store and the work in process. 4 The current assets represent cash, deposits, accounts receivable, advances paid and other similar debits to this Account.

(Value of Fired Assets) Article 3. The value of fixed assets shall be set on the total amount of direct and indirect expenses incurred in the acquisition thereof being fixed by the Minister of Postal Services. The fixed assets as contributed to this Account without compensation shall be determined by estimate.

(Depreciation and Replacement) Article 10. Depreciation on the depreciable assets as designated by the Minister of Postal Services shall be made every fiscal year in accordance with the standards established by the Minister of Postal Services. Replacement on the replaceable assets as designated by the Minister of Postal Services shall be made likewise. 2 As to establishing the standards of depreciation referred to in the preceding paragraph, the Minister of Postal Services shall consult with the Minister of Finance.

(Revision and Elimination from the Value of Fixed Assets) Article 11. In such cases where a fixed asset is shall be lost, transferred, withdrawn or otherwise abandoned, the value thereof revised or eliminated according to the degree of the particular cases mentioned above, in accordance with the procedures established by the Minister of Postal Services. 2 Provided, in case the revised or eliminated asset referred to in the preceding paragraph is a depreciable asset, the amount of the depreciation made so far on the said asset shall be retransferred from the reserve for depreciation.

(Value of Working Assets) Article 12. The value of working assets shall be the purchase price, or the costs required in the manufacture or production. 2 In case the determination of value under the provision of the preceding paragraph is difficult, or the said provision is inapplicable due to a particular reason, the value shall be determined by estimate.

(Transfer of the Value of Working Assets, etc.) Article 13. When working assets ar used for services, eliminating said price from working assets the value thereof shall be transferred to the appropriations for the said services. 2 The expenses necessary for the handling of working assets shall be apportioned to the appropriations referred to in the preceding paragraph in accordance with the procedures established by the Minister of Postal Services. 3 The expenses for repair on articles not in the category of assets under the provision of Article 15 shall be transferred to the account of the appropriate service utilizing the said articles in accordance with the procedures established by the Minister of Postal Services.

(Revaluation of Working Assets) Article 14. In such cases where a working asset is damaged, deteriorated, lost or becomes obsolete to any revised standard, the value thereof shall be revised or eliminated recording to the degree of the particular cases mentioned above.

(Storing, etc. of Working Assets) Article 15. In this Account, within the designated limit of appropriations, it is authorized to purchase and store working assets necessary for the operation of the services with the cash belonging to this Account, or to repair articles not in the category of assets.

Chapter III Funds

(Public Bonds and Borrowings) Article 16. In this Account, for plant extension or improvement, or for increasing the quantity of articles in store, it is authorized to raise public bonds or borrowings, liable to this Account. 2 In this Account, to cover the shortage in the appropriations necessary for the operation of the services, it is authorized to make borrowings liable to this Account. 3 As to the limit of the amount of public bonds or borrowings raised under the provision of the preceding two paragraphs, the approval of the Diet shall be obtained for the budget concerned.

(Temporary Borrowings and Accommodation Notes) Article 17. In this Account, in the case where cash is insufficient to make payment, it is authorized to make temporary borrowings or to issue accommodation notes, liable to this Account. 2 As to the limit of the amount of temporary borrowings and accommodation notes referred to in the preceding paragraph, the approval of the Diet shall be obtained for the budget concerned. 3 The temporary borrowings and accommodation notes referred to in paragraph 1 shall be redeemed within the current fiscal year;provided, in case no redemption is made due to decrease in the revenues, the temporary borrowings or accommodation notes, limited to the amount not redeemed, may he renewed. 4 The renewed temporary borrowings or accommodation notes under the proviso to the preceding paragraph shall be redeemed within one year from the date of the renewal.

(Transfer to the National Debt Consolidation Fund Special Account) Article 18. The redemption funds, for public bonds, borrowings, temporary borrowings, accommodation notes, the interest thereon, and the expenses incurred in the issuance and redemption shall be transferred every fiscal year to the National Debt Consolidation Fund Special Account, except for the redemption funds for temporary borrowings and accommodation notes to be paid within the current fiscal year;provided, where borrowings are made under the provision of Article 16 paragraph 2 or temporary borrowings or accommodation notes are renewed under the proviso to Article 17, paragraph 3, only the redemption funds for public bonds and borrowings may not be transferred to the said Special Account.

(Business Related to Redemption, etc. of Public Bonds, Borrowings, etc.) Article 19. The business related to raising, redeeming and renewing public bonds, borrowings, temporary borrowings and accommodation notes, etc. liable to this Account, shall be performed by the Minister of Finance.

(Operation of Surplus Funds) Article 20. The surplus funds in this Account may be deposited with the Deposits Bureau of the Ministry of Finance.

Chapter IV Budget

(Preparation and Submission of the Statement of Estimated Revenues and Expenditures, etc.) Article 21. The Minister of Postal Services shall be responsible for the preparation and submission every fiscal year to the Minister of Finance of the statement of estimated revenues and expenditures and the statement of contract authorizations, of this Account. 2 The statement of estimated revenues and expenditures and the statement of contract authorizations shall be attached with the following details: (1) Business operation program; (2) Profit and loss statement, balance-sheet and inventory for the fiscal year before last; (3) Estimated profit and loss statements and provisional balance-sheets for the current and the previous fiscal years; (4) As for the contract authorizations extending over to the succeeding fiscal year, the statements of payments made and expected to be made by the end of the previous fiscal year, and the statements of estimated payments for the current and the succeeding fiscal years. As for the contract authorizations extending over to several ensuing fiscal years, the plan of payments covering the entire period of the said fiscal years supported by written explanations as to show the progress of the business schedules, etc.; (5) Statement of temporary borrowings under the provision of Article 17.

(Classification of the Revenue and Expenditure Budgets) Article 22. The revenue and expenditure budget for this Account shall be classified into titles and items according to the nature of the revenues and the purpose of the expenditures.

(Preparation and Submission of Budget Estimates) Article 23. The Cabinet shall be responsible for the preparation of the budget estimates for this Account every fiscal year and for submission thereof to the Diet together with the General Account budget estimates. 2 The budget estimates referred to in the preceding paragraph shall be attached with the details prescribed in Article 21, paragraph 2.

(Distribution of the Revenue and Expenditure Budgets) Article 24. As to the distribution of the revenue and expenditure budgets to be executed in this Account, the classification of the expenditure budget into details may not be required, regardless of the provision of Article 31, paragraph 2, of the Finance Law (Law No.34 of 1947).

(Transfer of Appropriations) Article 25. The Minister of Postal Services, as for the appropriations in the business operation program of this Account designated by Cabinet Order, shall not make transfer of appropriations without the approval of the Minister of Finance. 2 The amount of the transferred appropriations under the provision of the preceding, paragraph shall be mentioned in the report of business operation results with due explanations therfor.

(Disbursement of Reserve Funds) Article 26. In this Account, the Minister of Postal Services, within the limit of the amount of the plan or acts to incur disbursements designated by the Minister of Finance under the provision of Article 34, paragraph 1 of the Finance Law, is authorized to approve the use of the reserve funds appropriated for the business operating expenses, regardless of the provision of Article 35, paragraphs 2 and 3 of the same Law. 2 The Minister of Postal Services, when the use of the reserve funds is approved for use under the provision of the preceding paragraph, shall be responsible for the preparation and submission to the Minister of Finance and the Board of Audit of the written explanations for the reason, amount and calculation basis. 3 When the use of the reserve funds is approved under the provision of paragraph 1, the said appropriations are construed as distributed under the provision of Article 31, paragraph 1 of the Finance Law.

(Preparation of the Disbursement Plan) Article 27. The disbursement plan of this Account shall be divided into the following two groups: (1) That which reflects the maximum amount to the extent of which checks or treasurys'cash transfer notes may be issued; (2) That which reflects the maximum amount to the extent of which the official cashiers are authorized to make the payments under the provision of Article 33. 2 The notification to the Bank of Japan of the disbursement plan prescribed in item 2 of the preceding paragraph is not required.

(Carrying over of Appropriations) Article 28. In this Account, as to the carrying over of the appropriations approved by the Diet under the prevision of Article 25 of the Finance Law, the Minister of Postal Services, provided the said appropriations are within the amount of the plan of acts to incur disbursements approved by the Minister of Finance under the provision of Article 34, paragraph 1 of the Finance Law, is authorized to make the carrying over of the said appropriations to the succeeding fiscal year, regardless of the provision of Article 43 paragraph 1 of the Finance Law. 2 The Minister of Postal Services, when the carrying over is made under the provision of the preceding paragraph, shall be responsible for the notification to the Minister of Finance and the Board of Audit of the expenditure items, amount and reason. 3 The appropriations carried over under the provision of paragraph 1 are construed as distributed under the provision of Article 31 paragraph 1 of the Finance Law.

(Continuance of the Authorization for Raising Public Bonds and Borrowings) Article 29. In this Account, provided the public bonds or borrowings approved for raising by the Diet are not raised up to the designated limit of amount, the said authorization for the remaining portion of the amount may be continued to the succeeding fiscal year within the amount of the appropriations and payables carried over from the previous fiscal year.

Chapter V Revenues and Expenditures

(Designation of Assistant Disbursement Officials) Article 30. The Minister of Postal Services, when considered necessary, is authorized to designate assistant disbursement officials to charge them with a part of the business of disbursement officials. 2 The Minister of Postal Services, when he designates assistant disbursement officials under the provision of the preceding paragraph, shall make notification of the designation to the Minister of Finance and the Board of Audit.

(Delegation to the Chiefs of Post Offices of Special Responsibilities) Article 31. The Minister of Postal Services is authorized to delegate to the chiefs of post offices special responsibilities of revenue collecting officials, disbursement officials or assistant disbursement officials, which special responsibilities are prescribed by Cabinet Order. 2 The provision of Articles 8 and 26 of the Accounts Law (Law No.35 of 1947) shall not apply to the said chiefs of post offices referred to in the preceding paragraph.

(Resources of Funds from which Payments are Made) Article 32. For every fiscal year, the total of the disbursed amount of the appropriations and the amount of the payables carried over from the previous fiscal year on this account shall not exceed the total of the amount which can be devoted to the resources of expenditures out of the cash carried over from the previous fiscal year on this Account and the amount of already collected revenues for the current fiscal year.

(Disbursement Orders) Article 33. For the purpose of disbursing the expenditure money, the disbursement official of this Account is authorized, in addition to issuing checks or treasury's cash transfer notes money orders, to issue disbursement orders to official cashiers designated by the Minister of Postal Services in accordance with the provision of Cabinet Order. 2 The disbursement official, within the limit designated in the disbursement plan prepared under the provision of Article 27 paragraph 1 item 2, is authorized to direct the assistant disbursement official referred to in Article 30 paragraph 1 to issue, in accordance with the provision of Cabinet Order, the disbursement orders of the expenditure money, within the designated limit of the amount, to the official cashier referred to in the preceding paragraph.

(Cash Payments) Article 34. The official cashier referred to in paragraph 1 of the preceding Article, when the disbursement order is to hand, is authorized to make payments with the cash in his custody in accordance with the provision of Cabinet Order. 2 In case the amount of the payment during the current month under the provision of the preceding paragraph exceeds the total of the amount of the revenues held by the official cashier at the beginning of the current month plus the amount of the revenues received by the official cashier during the current month, the Minister of Postal Services shall deliver the excess amount, in accordance with the provision of Cabinet Order, to the said official cashier by the end of the month after next.

Chapter VI Settlement of Accounts

(Preparation of Financial Statements) Article 35. The Minister of Postal Services shall be responsible for the preparation every fiscal year of the profit and loss statement, the balance-sheet, the inventory, the comparative statement of increased and decreased assets, and the comparative statement of increased and decreased capital.

(Disposition of the Surplus and the Deficit) Article 36. In this Account, any surplus earned in the settlement of accounts shall be added every fiscal year to the reserves, and the deficit shall be settled by deducting from the reserves. 2 In case the deficit referred to in the preceding paragraph exceeds the reserves, the excess amount may be carried forward as the accumulate deficit.

(Preparation and Submission of the Statement of Determined Revenues and Expenditures) Article 37. The Minister of Postal Services shall be responsible for the preparation and submission every fiscal year to the Minister of Finance of the statement of determined revenues and expenditures. 2 The statement referred to in the preceding paragraph shall be attached with the following details: (1) Report on business operation results; (2) Profit and loss statement, balance-sheet, inventory, comparative statement of increased and decreased assets, and comparative statement of increased and decreased capital for the current fiscal year; (3) Statement of liabilities.

(Form of the Settlement of Revenues and Expenditures) Article 38. The settlement of revenues and expenditures for this Account shall be made as classified into the same titles of accounts as in the budgets for revenues and expenditures, and supported by the following details: (1) Revenues: 1) Amount of estimated revenues; 2) Amount of determined revenues (as for such revenues as are not predeterminable, the amount determined after the receipt is to be included in the amount of the determined revenues); 3) Amount of uncollectibles. (2) Expenditures: 1) Amount of estimated expenditures; 2) Amount of appropriations carried over from the previous fiscal year; 3) Amount of appropriated reserve funds; 4) Transferred amount of Accounts; 5) Amount of determined expenditures; 6) Amount of appropriations to be carried over to the succeeding fiscal year; 7) Balance appropriations.

(Preparation and Submission of the Statement of Settled Revenues and Expenditures) Article 39. The Cabinet shall be responsible for the preparation of the statement of settled revenues and expenditures for this Account every fiscal year and for submission thereof to the Diet together with that of the General Account. 2 The statement referred to in the preceding paragraph shall be attached with the details prescribed in Article 37, paragraph 2.

Chapter VII Miscellaneous Provisions

(Transfer of the Proceeds of Revenue Stamps) Article 40. The proceeds from the sales of the revenue stamps and the amount of the purchasing shall be accounted for respectively the revenues and the expenditures of this Account. The proceeds less the amount of the purchasing and the expenses necessary for the sales of the revenue stamps shall be transferred to the General Account.

(Transfer from Other Accounts) Article 41. In order to appropriate for the expenses of the business related to the payment of the annual and lump sum pensions, receipt and payment of the treasury and others, the Accounts entrusting the above businesses to this Account are authorized to make the transfer of funds to this Account within the limit of the respective appropriations.

(Transfer to the Telecommunication Services Special Account) Article 42. This Account is authorized to make the transfer of funds to the Telecommunication Services Special Account within the limit of the appropriations to cover:the expenses necessary for the installation, maintenance and operation of the facilities of the Ministry of Telecommunications wholly or partly utilized by the Ministry of Postal Services in accordance with the agreement between the Minister of Postal Services and the Minister of Telecommunications;and for the telecommunication services charges collected in postage stamps less the expenses necessary for the performance of the said business.

(Matters Related to the Enforcement of This Law) Article 43. The necessary procedural and administrative matters for enforcement of this Law shall be prescribed by Cabinet Order.