Article 1.　The purpose of this Law is to assure the supply of scraps necessary for the recovery and promotion of iron and steel industries and any other ones using iron scraps as raw material or material.

Article 2.　The Minister of International Trade and Industry may designate the things or any part thereof (excluding State properties) which are made up mainly of iron or steel (including any alloy made up mainly of steel) and which are listed underneath but which are not being used for their original purposes and in future are not expected to be used for such purposes as things to be scrapped;however, with regard to the thing mentioned in item (2), a consultation shall be made in advance with the Minister of Transportation:

2　The designation under the preceding paragraph shall not be made unless it is considered most effective from the view-point of national economy to utilize the things listed in the preceding paragraph as iron scraps.

3　The Minister of International Trade and Industry, in case he has made the designation as mentioned in paragraph 1, shall immediately notify the name and location of the thing, the name of owner or occupant of the thing and other pertinent matters determined by Ministerial Ordinance to the owner and occupant of the thing and also make public the same.

Article 3.　Any owner or any occupant of things, upon receipt of a notification mentioned in paragraph 3 of the preceding Article, shall not make transfer or any other disposition of things or shall not make a change in the type and quality of things, with exception of the case of order stipulated in Article 12 paragraph 1;however, this shall not apply to the case where a permission by the Minister of International Trade and Industry has been granted as provided for by Ministerial Ordinance.

Article 4.　Any owner or any occupant or any mortgages of things to be scrapped may, when he has an opposition against the designation made under the provision of Article 2 paragraph 1, within 40 days from the day when the publication under the provision of paragraph 3 of the preceding Article has been effected, make a complaint against the Minister of International Trade and Industry.

2　In case any complaint has been made under the provision of the preceding paragraph, the Minister of International Trade and Industry shall, within 80 days from the day when the complaint has been made, consult the Council for Things to Be Scrapped and thereby make a decision on this complaint.

3　In case any decision on the complaint has not been made within the period as mentioned in the preceding paragraph, the decision that the complaint has been validated shall be regarded as being effected.

4　The Minister of International Trade and Industry shall, in case he has decided that the complaint has been validated under paragraph 2 or in the case as mentioned in the preceding paragraph, immediately cancel or change the designation and make public this matter.

Article 5.　In ease any complaint has been made under the provision of paragraph 1 of the preceding Article, the parties interested in the things to be scrapped may, as provided for by Ministerial Ordinance be present in a meeting of the Council for Things to Be Scrapped and thereby express their opinion on whether or not the designation of the things to be scrapped is justifiable.

Article 6.　The Council for Things to Be Scrapped (hereinafter referred to as "the Council" ) shall be established in the Ministry of International Trade and Industry.

Article 7.　In addition to such matters as provided for in Article 4 paragraph 2 and Article 12 paragraph 4, the Council shall, in response to the inquiries of the Minister of International Trade and Industry, study and deliberate upon the matter pertaining to:

2　The Council may make proposals in regard to the matters pertaining to things to be scrapped for the Government agencies concerned.

Article 8.　The Council shall be composed of one Chairman and members not exceeding 15 persons.

Article 9.　The post of the Chairman of the Council shall be filled by the Minister of International Trade and Industry.

2　The members of the Council shall be appointed by the Minister of International Trade and Industry from among the personnel of the Government agencies concerned, experts in iron scraps, collectors of or dealers in, iron scraps and consumers of iron scraps.

Article 10.　The members of the Council shall receive allowances and travel expenses within the amount of money decided in the budget.

Article 11.　Except those as provided for in this Law, all necessary matters concerning the Council shall be determined by Ministerial Ordinance.

Article 12.　The Minister of International Trade and Industry may issue any necessary order with respect to the following matters on the basis of measures to be fixed by the President of E. S. B.:

2　The Government shall compensate for the loss to one who suffered loss from receiving an order to transfer or deliver things to be scrapped mentioned in paragraph 1 of the preceding Article.

3　The loss to be compensated for in accordance with the provision of the preceding paragraph shall be the loss usually to be incurred.

4　The amount to be compensated for in accordance with the provision of paragraph 2, shall be fixed by the Minister of International Trade and Industry after consulting with the Minister of Finance and hearing the opinion of the Council for Things to Be Scrapped.

5　Besides the provisions of the preceding three paragraphs, the necessary matters concerning the compensation of loss shall be provided for by Ministerial Ordinance.

6　Disposition of the right to mortgage and any other necessary matters in the cases where an order as mentioned in paragraph 1 shall be determined by Cabinet Order.

Article 13.　The Minister of International Trade and Industry may order owners, occupants, or consumers of things to be scrapped or iron scraps or collectors of or dealers in iron scraps to report on such matters as deemed necessary for adjustment of supply and demand of iron scraps;in this case if those who are ordered to report have failed to report or made a false report, the Minister of International Trade and Industry may let his subordinate offcial enter into their business offices, business shops, factories, working fields or warehouse and inspect business situation or things to be scrapped or iron scrap books, documents or any other necessary things.

2　In case an official in charge visits and inspects under the preceding paragraph, he shall carry with him an identification card and in case the parties interested have requested him to show it, he shall do so.

Article 14.　Any person who falls under any of the following items shall be subjected to penal servitude not exceeding 10 years or a fine not exceeding 100,000 yen:

2　Both penal servitude and a fine may, in view of the attending circumstances, be imposed on a person who has committed any offence as mentioned in the preceding paragraph.

Article 15.　Any person who falls under any of the following items shall be subjected to penal servitude not exceeding 1 year or a fine not exceeding 10,000 yen:

Article 16.　In case any representative of a juridical person or any proxy and or employee of a juridical person or of a natural person or any other person whom the juridical person or the natural person employs to let him do business has committed any offence as mentioned in Article 14 paragraph 1 or in the preceding Article in regard to the business of the juridical person or the natural person, a fine as mentioned in Articles 13 and 14 shall be imposed on the juridical person or the natural person in addition to the offenders being penalized.