Foreign Investment Commission Establishment Law

(Purpose of this Law) Article 1. The purpose of this Law is to define clearly the scope of responsibilities and powers of the Foreign Investment Commission and to establish an organization fit for the efficient execution of the administrative affairs under the jurisdiction thereof.

(Establishment) Article 2. In accordance with the provisions of Article 3 paragraph 2 of the National Government Organization Law (Law No.120 of 1948) the Foreign Investment Commission (hereinafter referred to as the "Commission" ) shall be established as an external organ of the Economic Stabilization Board.

(Responsibilities) Article 3. In order to stimulate the proper investment of foreign capital into Japan for the purpose of promoting the self-support and sound development of Japanese economy and to maintain the international balance of payment of Japan, the Commission shall take charge of the following affairs: (1) To deliberate in advance, and present its opinion to the Cabinet on important cases pertaining to the investment of foreign capital into Japan which are to be decided by the Cabinet; (2) To deliberate and make necessary recommendations on cases related to the investment of foreign capital into Japan which are referred to it by the administrative organs concerned; (3) To examine the technological assistance and business activities of foreign investors; (4) To examine the acquisition of stock and other properties and/or rights thereto by foreign investors; (5) To examine the acquisition of real properties and/or rights thereto by foreign governments; (6) To make reports to the Cabinet on the progress of investment of foreign capital into Japan and other necessary matters; (7) To make recommendations on the important policies pertaining to the investment of foreign capital into Japan to the Prime Minister and the administrative organs concerned.

(Powers) Article 4. For the purpose of carrying out the responsibilities under the provisions of this Law, the Commission shall have the powers as listed below. However, such powers shall be exercised in accordance with laws (including orders issued thereunder): (1) Within the limits of budgetary appropriations to perform those acts incurring expenditures and make disbursement necessary for carrying out its responsibilities; (2) To administer personnel affairs, including appointment, dismissal, awards and discipline; (3) To distribute or publish statistics and research data pertaining to the affairs under its jurisdiction; (4) To give publicity and provide information to the general public concerning the affairs under its jurisdiction; (5) To adopt the official seals of the Commission; (6) To collect reports relative to the affairs under its jurisdiction; (7) To validate or receive report in accordance with the Law concerning Foreign Investment (Law No.163 of 1950), with regard to conclusion or renewal of technological assistance contracts, or acquisition by foreign investors of stock, etc.; (8) To validate the acquisition of real properties and/or rights thereto and other specific properties in accordance with the Cabinet Order concerning Acquisition of Properties and/or Rights by Foreign Nationals (Cabinet Order No.51 of 1949); (9) To approve the commencement of specific business activities of foreign nationals in accordance with the Cabinet Order concerning Business Activities of Foreign Nationals (Cabinet Order No.3 of 1950); (10) To approve the acquisition of real properties and/or rights thereto by foreign governments in accordance with the Cabinet Order concerning Acquisition of Real Properties and/or Rignts thereto by Foreign Governments (Cabinet Order No.311 of 1949); (11) In addition to those listed in the preceding respective items, such powers as are placed under the jurisdiction of the Commission in accordance with laws (including orders issued thereunder).

(Organization, Chairman and Members) Article 5. The Commission shall consist of a Chairman and members not exceeding six (6) in number. 2 The Chairman of the Commission shall be filled by the Director-General of the Economic Stabilization Board. 3 The members shall be as specified hereunder: (1) A representative of the Ministry of Finance; (2) A representative of the Ministry of International Trade and Industry; (3) A representative of the Foreign Exchange Control Board; (4) Persons of learning and experience not exceeding three (3) in number. 4 The member prescribed in item (4) of the preceding paragraph shall be appointed by the President of the Economic Stabilization Board;the members prescribed in items (1) through (3) of the same paragraph shall be appointed by the President of the Economic Stabilization Board upon nomination by the respective heads of the administrative organs prescribed in each item. 5 The members shall be in part-time service. 6 When, in case the Commission exercises its powers, the matters come under the jurisdiction of administrative organs other than the respective Ministries or Agencies which a member represents, the Commission shall be required to ask, in advance, the opinions of the administrative organ concerned.

(Chairman) Article 6. The Chairman shall preside over the affairs of the Commission, and represent it. 2 The Cnairman shall, in advance, designate a person from among the members of the Commission who will act for the Chairman in case he is prevented from discharging his duties.

(Proceedings) Article 7. The proceedings of the Commission shall be decided by majority vote of the members. In case of a tie, the Chairman shall have the casting vote. However, in case the member representing the administrative organ in charge of the matters as placed on the agenda raises objection, decision shall not be made thereon. 2 As for the cases falling under the proviso to the preceding paragraph, the Commission shall be subject to the directive of the Cabinet. 3 Other matters those provided for in the preceding two paragraphs necessary matters for the operation of proceedings of the Commission shall be determined by the Commission.

(Regulation of the Foreign Investment Commission) Article 8. The Commission may establish Foreign Investment Commission Regulations for the purpose of enforcing laws or Cabinet Order or under the specific delegation by law or Cabinet Order concerning the matters coming under its jurisdiction. 2 Foreign Investment Commission Regulations shall be notified by the Official Gazette.

(Executive Office) Article 9. The Executive Office of the Commission shall take charge of the affairs of the Commission. 2 The head of the Executive Office shall be its Secretary-General. The Secretary-General shall be subject to the direction and supervision of the Commission, and shall administer the affairs of the Executive Office. 3 The Secretary-General and other personnel of the Executive Office, except for those provided for in the Law for the Fixed Number of Personnel in the Administrative Organs (Law No.126 of 1949), shall be filled by the personnel assigned to the Executive Office from among the personnel of the Ministries and Agencies concerned on a full-time basis for the Executive Office.

(Handling of Affairs by the Bank of Japan) Article 10. The Commission may have the Bank of Japan handle a part of its business in accordance with the provisions of Cabinet Orders. 2 In case a part of the business of the Commission is handled by the Bank of Japan in accordance with the provisions of the preceding paragraph, the expenses necessary for the handling of the said business shall be borne by the Bank of Japan.

(Personnel of the Executive Office) Article 11. Matters concerning personnel affairs of personnel assigned to the Executive Office such as appointment, dismissal, promotion, discipline and others, shall be in accordance with the provisions of the National Public Service Law (Law No.120 of 1947).

Supplementary Provisions: 1. This Law shall come into force as from the day of the enforcement of the Law concerning Foreign Investment. 2. The Cabinet Order concerning the Acquisition of Properties and/or Rights by Foreign Nationals (Cabinet Order No.51 of 1949) shall be partially amended as follows: Articles 11 to 18 inclusive shall be amended as follows:

Articles 11 to 18. Deleted.

3. The Foreign Investment Commission and the organ and personnel thereof based upon the Cabinet Order concerning the Acquisition of Properties and/or Rights by Foreign Nationals shall become the Foreign Investment Commission and the corresponding organ and personnel thereof based on this Law, and shall continue to exist with the same identity. 4. The Economic Stabilization Board Establishment Law (Law No.164 of 1949) shall be partially amended as follows: In Article 34, "Cabinet Order concerning Acquisition of Properties and/or Rights by Foreign Nationals (Cabinet Order No.51 of 1949)" shall be amended as "Foreign Investment Commission Establishment Law (Law No.164 of 1950)."