(Purpose)
Article 1. The purpose of this Law is to promote export trade, through establishing a system to insure, by re-insurance by the Government, restrictions on exchange transactions and other risks inherent in export trade which cannot be relieved by an ordinary insurance.
(Re-insurance Contract)
Article 2. The Government may enter into, in each fiscal year, a contract (hereinafter referred to as "Re-insurance Contract" ) with an insurance company (including any foreign insurer who has obtained the licenses from the Minister of Finance in accordance with the provisions of Article 3 paragraph 1 of the Law for Foreign Insurers (Law No.184 of 1948);hereinafter the same.) to re-insure the export credit insurance the said insurance company assumes within the fiscal year.
2 The rate of re-insurance premium under the re-insurance contract shall be determined by a Cabinet Order so as to cover all the insurance money paid by the Government according to the re-insurance contract and the administrative expenses of the Government incurred in the enforcement of this Law.
3 The amount of the insurance money to be paid by the Government according to the re-insurance contract shall be equal to the sum to be compensated by the insurance company according to the export credit insurance contract.
4 In case an insurance company has violated the provisions of this Law (including Orders issued under this Law) or the re-insurance contract, the Government may refuse the payment of the whole or a part of the insurance money provided under the re-insurance contract, have the whole or a part of the insurance money returned, or rescind the re-insurance contract for the future.
5 In case a transaction is feared to be accompanied by a great risk or in case it is deemed necessary to do so in managing the re-insurance enterprise falling under this Law, the Government may, for the future, put a limit on the amount to be insured by the export credit insurance under which the re-insurance is to be assumed or refuse to assume the re-insurance.
6 The Government shall enter into the re-insurance contract within the limit where the total sum of the insurance money payable for under the re-insurance contract is not in excess of the amount of money appropriable by the decision of the National Diet.
(Export Credit Insurance)
Article 3. The export credit insurance shall be the loss insurance to compensate for the loss (excluding the loss incurred on export goods) which the exporter suffered from the causes mentioned in each of the following items with respect to an export contract (export contract to export goods produced, processed or collected within this country which is decided by Cabinet Order;hereinafter the same):
(1) Restriction or prohibition of exchange transactions newly enforced in foreign country after the conclusion of the export contract with respect to settlement of the prices of export goods;
(2) Restriction or prohibition of import or cancellation of import licence newly enforced in the buyer's country after the conclusion of the export contract;
(3) The occurrences of war, revolution or civil war within the buyer's country;
(4) Any other causes outside the control of the exporter or of the buyer which arise from events occurring outside the territorial limits of this country excluding causes as mentioned in each of the preceding items;
(5) Cancellation of approval of export, or restriction or prohibition of export newly enforced after the conclusion of the export contract, in conformity with the Foreign Exchange and Foreign Trade Control Law (Law No.228 of 1949).
Article 4. In export credit insurance, the amount of price of export goods decided under an export contract shall be made the insurable value.
2 In case the amount insured in a contract of the export credit insurance is in excess of the sum tantamount to the amount of the insurable value multiplied by the ratio as provided for, with eighty per cent as the maximum, by Cabinet Order, the contract shall be null and void in respect to the part in excess of the sum.
3 In case several contracts of the export credit insurance exist as for one and the same export contract and in case the total of the amounts insured in such contracts is in excess of the sum prescribed in the preceding paragraph, the amount to be borne by each insurer shall be determined in proportion to the amount insured by each of the respective insurers.
Article 5. The amount of money to be compensated by an insurance company under the export credit insurance shall be the amount of money obtained when the sum which the exporter could not, on account of cause falling under any one of the items of Article 3, receive under the export contract, after the amount of money referred to in the following items is subtracted therefrom, is multiplied by the ratio, against the insurable value, of the amount insured:
(1) The amount of money which has been or may be collected by the exporter by means of disposal of export goods or by taking other steps needed for reducing the loss;
(2) The amount of money of which the exporter has been relieved from payment because he was exempted from the performance of the export contract by reason of the occurrence of the above causes.
(Appeal of Complaints)
Article 6. An insurance company may appeal to the Minister of International Trade and Industry, in case it has any complaint on the decision made with regard to the amount of insurance money to be paid by the Government under the re-insurance contract and on the measures to be taken in accordance with the provisions of Article 2 paragraph 4.
2 The Minister of International Trade and Industry, upon receipt of the appeal under the provisions of the preceding paragraph, shall hold a hearing which is open to the public in accordance with the procedure set forth by Ministerial Ordinance, make a decision within fifty days from the date that he received the appeal and notify the decision to the appellant.
3 No provision of the preceding two paragraph shall be construed as to prohibit the right of appeal to duly constituted legal authority by an insurance company.
(Export Credit Insurance Council)
Article 7. The Export Credit Insurance Council (hereinafter referred to as the "Council" ) shall be established in the Ministry of International Trade and Industry.
2 When the Minister of International Trade and Industry (with respect to item (1), the Minister of International Trade and Industry and the Minister of Finance) intends to perform the acts mentioned in the following, he shall consult with the Council:
(1) Drafting of the Cabinet Order under the provisions of Article 2 paragraph 2 and Article 4 paragraph 2;
(2) Drafting of the Cabinet Order under the provisions of Article 3;
(3) Measured to be taken in accordance with the provisions of Article 2 paragraph 4 or 5;
(4) Decision or change of the provisions of the re-insurance contract.
3 The Council may state its opinion at any time concerning the effectual operation of this Law to the Minister of International Trade and Industry or the Minister of Finance.
Article 8. The Council shall be composed of the Minister of International Trade and Industry and members not exceeding 9 persons.
2 The Minister of International Trade and Industry shall be the Chairman and be responsible for the affairs of the Council.
3 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 and persons of learning and experience in the field of foreign trade and insurance.
Article 9. The tenure of office of the member appointed from among persons of learning and experiences shall be two years. However, the tenure of such members as are appointed to fill vacancies shall be the remainder of that of their predecessors.
2 The members shall not be in full-time service.
Article 10. The miscellaneous affairs of the Council shall be attended to by the Trade Promotion Bureau of the Ministry of International Trade and Industry.