The Export Credit Insurance Law (Law No.67 of 1950) shall be amended as follows:
Before Article 1, the following Contents and name of Chapter shall be added:
Contents
Chapter I General Provisions(Articles 1-1-(7))
Chapter II A Class Insurance(Articles 2-5)
Chapter III B Class Insurance(Articles 5-(2)-5-(4))
Chapter IV C Class Insurance(Articles 6-10)
Chapter V D Class Insurance(Articles 11-14)
Chapter VI Appeal of Complaints(Article 15)
Chapter VII Export Credit Insurance Council(Articles 16-19)
Supplementary Provisions
CHAPTER I General Provisions
The following six Articles and names of Chapters shall be added next to Article 1:
(Definition)
Article 1-(2). The term "an export contract" as used in this Law shall mean a contract to export goods produced, processed or collected in this country, having stipulation as to matters as may be prescribed by Cabinet Order.
2 The trem "an exporter" as used in this Law shall mean the party to an export contract who is to export goods.
3 The term "a supply contract" as used in this Law shall mean a contract to produce, process or collect, in this country, goods which an exporter shall export according to the contract and to deliver them to the exporter.
4 The term "a producer" as used in this Law, shall mean a person who, for the purpose of making export, produces, processes or collects goods in this country.
(Classes of Export Credit Insurance)
Article 1-(3). The export credit insurance shall be classified into A class insurance, B class insurance, C class insurance and D class insurance.
(Rates of Insurance Premium)
Article 1-(4). The rates of insurance premiums for insurance contracts of export credit insurance (contracts to re-insure A class insurance,;in case of the A class insurance;hereinafter the same) shall be so fixed by Cabinet Order as to enable income from the insurance business to be carried out by the Government in accordance with this Law to cover the outgo.
(Release of Contracts, Etc.)
Article 1-(5). The Government may, when the party to, or an insured person or beneficiary under insurance contracts of export credit insurance has violated the provisions of this Law (including orders issued thereunder) or clauses stipulated by the export contract, withhold the payment of insurance money under the insurance contract in whole or in part or cause him to repay it in whole or in part, or cancell from the export contract for the future.
(Restrictions on Establishment of Insurance Relationship, Etc.)
Article 1-(6). The Government may, when there exist greater risks or when necessary, due to the other causes, for carrying out insurance business of the Government under this Law, limit, for the future the amount insured under A class insurance to be re-insured or may withhold the establishment of insurance relationship based on an insurance contract under the reinsurance of A class insurance or C class insurance.
(Limits to Contracts)
Article 1-(7). The Government shall conclude insurance contracts of export credit insurance within the limit that the total of amounts insured under A class insurance to be re-insured under the insurance contracts to be concluded in a fiscal year, the total of amounts insured under B class insurance to be underwritten for the said term, the total of amounts insured under insurance relationship to be established on insurance contracts of C class insurance to be concluded for the said term and the total of insurance money to be paid in accordance with insurance contracts of C class insurance and the total of amounts insured under D class insurance underwritten for the said term do not exceed respectively the amounts approved by the Diet for the said fiscal year.
CHAPTER II A Class Insurance
The heading of Article 2 shall be amended as "(Re-insurance Contract)" ;in paragraph 1 of the same Article, "export credit insurance" shall be amended as "A class insurance" , and "(hereinafter referred to as" Re-insurance Contract) "shall be deleted;and, in paragraph 2 of the same Article," the re-insurance contract "shall be amended as" the contract under the preceding paragraph ", and" the export credit insurance contract "shall be amended as" the insurance contract under A class insurance";and paragraphs 3 to 5 inclusive shall be deleted.
To Article 3 shall be added "(Insurance Contract)" as its heading;and, in the same Article, "The export credit insurance reinsurance of which the Government may underwrite" shall be amended as "A class insurance" , "an export contract (export contract to export goods produced, processed or collected within this country which is decided by the Cabinet Order;hereinafter the same)" shall be amended as "an export contract or supply contract" , and "or the producer, concerning the goods specified by the Cabinet Order, who is the party to a supply contract," shall be added next to "exporter" , and "the loss insurance (hereinafter referred to as" A class insurance ")" shall be amended as "export credit insurance" .
Article 4 shall be amended as follows:
Article 5 shall be amended as follows:
(Insurance Money)
Article 5. The amount of money to be compensated under A class insurance, the insured person of which is an exporter, by the insurance company shall be the amount of money obtained by multiplying by the ratio as may be fixed, within the limit of 80%, by Cabinet Order the balance between the sum, which is part of the prices fixed by the export contract for the export goods concerned, the exporter has been unable to receive due to any of the causes mentioned in items of Article 3 and the amounts mentioned in the following items (in case it is fixed at the time of conclusion of the contract that increases which have come to be paid by the exporter, in freight or insurance premium for marine, from change in voyage or deviation from the route due to the said cause is to be compensated:the aggregate of the said balance and the said increases);provided, however, that the said amount may not exceed 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 implementation of the export contract by reason of the occurrence of the said causes;
(3) The balance between the amount of profits that could have been accrued by the exporter through the export of the goods (only the part concerning the goods the exporter has been unable to export by reason of the occurrence of the said causes) and the amount of money obtained by multiplying by the ratio as may be fixed by Cabinet Order, the prices of the export goods (only the part concerning the goods the exporter has been unable to export by reason of the occurrence of the said causes).
2 The provisions under the preceding paragraph shall apply mutatis mutandis to the amount of money to be compensated under A class insurance, the insured person of which is an producer, by the insurance company.
Next to Article 5, the following name of Chapter shall be added:
CHAPTER III B Class Insurance
The heading of Article 5-(2) shall be amended as "Insurance Contract" ;and, in the same Article, paragraph 3 shall be deleted, paragraph 2 shall be made paragraph 3, and, in paragraph 1, "The Government may" shall be amended as "B class insurance shall" , "underwrite an insurance to be known as export credit insurance (hereinafter referred to as" B class insurance ")" shall be amended as "be an export credit insurance" , and the same paragraph shall be made paragraph 2;and the following one paragraph shall be added as paragraph 1 of the same Article:
The Government may underwrite B class insurance.
To Article 5-(3) shall be added "(Insurable Value)" as its heading.
To Article 5-(4) shall be added "(Insurance Money)" as its heading;and in the same Article, "Article 5-(2) paragraph 1" shall be amended as "Article 5-(2) paragraph 2" .
Article 5-(5) and Article 5-(6) shall be deleted.
To Article 10 shall be added "(Miscellaneous Affairs)" as its heading and the same Article shall be made Article 19.
Article 9 shall be made Article 18;to Article 8 shall be added "(Organization)" as its heading;in paragraph 1 of the same Article, "9 persons" shall be amended as "11 persons" ;in paragraph 3 of the same Article, "foreign trade" shall be amended as "foreign trade, financing" ;and the same Article shall be made Article 17.
The heading of Article 7 shall be amended as "(Establishment and Powers)" ;and the same Article made Article 16;and before the same Article, the following name of Chapter shall be added:
CHAPTER VII Export Credit Insurance Council
The heading of Article 6 shall be deleted;and in paragraph 1 of the same Article, "An insurance company or an insured person or a beneficiary of B class insurance.........., in case where it has any complaint on the decision made with regard to the amount of insurance money to be paid by the Government and on the measures to be taken in accordance with the provisions of Article 2 paragraph 3 or Article 5-(5)" shall be amended as "Any person who has any complaint on the decision made with regard to the amount of insurance money to be paid by the Government and on the measures to be taken in accordance with the provision of Article 1-(6)...................... on the said complaint" ;paragraph 3 of the same Article shall be deleted;the same Article shall be made Article 15;and before the same Article, the following name of Chapter shall be added:
CHAPTER VI Appeal of Complaints
The following two Chapters shall be added next to Article 5-(4):
CHAPTER IV C Class Insurance
(Insurance Contract)
Article 6. The Government may, in each fiscal year or half year, enter into insurance contracts of the C class insurance with the banks (excluding the Bank of Japan and including the Central Cooperative Bank of Agriculture and Forestry and Central Bank for Commercial and Industrial Cooperative;hereinafter the same).
2 C class insurance is an export credit insurance to establish an insurance relationship, between the Government and the bank, with respect to loan on bill or discounting of bill by notification from the bank to the Government that the bank has made loan on bill or discounting of bill to loan funds mentioned in the following items to producers or exporters, in which the Government is to compensate for the amount of loans the bank failed to collect due to the fact that exporters or producers have not been able to export or to transfer, for purposes of export, goods, in whole or in part, which they have intended to export or to transfer, for purposes of export, with the use of the funds loaned by method of the said loan on bill or discounting of bill.
(1) Funds exporters needed for the export of, or funds producers needed for the production, processing or collection of, goods to be exported, subject to the export contracts, to the areas as may be specified by Cabinet Order or goods to be exported in accordance with the method of settlement of payment as may be prescribed by Cabinet Order;
(2) Other than those funds mentioned in the preceding item, funds needed to producers for the production, processing or collection of the said goods, in case the Minister of International Trade and Industry has recognized that the export contracts are prospected to be certain of conclusion for the export of the goods specified by Cabinet Order to the areas specified by Cabinet Order.
(Insurable Value and Amount Insured)
Article 7. In the insurance relationship under C class insurance, the amount of bills shall be the insurable value, and the amount obtained by multiplying the insurable value by 75% shall be the amount insured.
(Insurance Money)
Article 8. The amount of money to be conpensated under the insurance relationship of C class insurance by the Government shall be the amount obtained by multiplying, by 75%, the balance between the amount which, out of insurable value, the bank could not collect by the due date of the bill concerned due to the cause mentioned in Article 6 paragraph 2 and the amount collected after the lapse of the due date.
(Collection of Funds)
Article 9. The banks which have received the payment of insurance money shall, by exercising their right on bills, endeavour to collect loans which they loaned by method of loan on bill or discounting of bill that established the insurance relationship under Article 6 paragraph 2.
(Payment of Money Collected)
Article 10. The banks which have received the payment of insurance money shall pay to the Government the amount obtained by multiplying, by 75%, the balance between the amount of money collected after the date of the request for payment of the insurance money and the amount of interest accrued for the period from the due date of bill to the day preceding the day on which the insurance money was paid.
CHAPTER V D Class Insurance
(Insurance Contract)
Article 11. The Government may underwrite D class insurance.
2 The D class insurance shall be an export credit insurance to compensate for loss accrued from failure to recover expenses by export of goods or by transfer of goods for the purpose of export in case they have been paid by producers for exports of samples of goods and for advertisement for the purpose of exporting goods to the areas specified by Cabinet Order.
Article 12. In insurance contracts of D class insurance, stipulation shall be made as to the kind of export goods, the areas to which the goods are to be exported, the amount of the expense, to be paid for purposes of advertisement of the said goods, the term during which the said expense is to be recovered (hereinafter referred to as "term of recovering" ) and the ratio of the amount of the said expense to the amount of money, to be received on account of the payment of the said expense, out of the amount of money to be received by producer as the price of goods exported to the said area during the term of recovering (hereinafter referred to as "rate of recovering" ).
(Insurable value)
Article 13. In D class insurance, the amount of expense provided for in the preceding Article shall be the insurable value.
2 In case the amount insured under D class insurance exceeds the amount obtained by multiplying the amount of the insurable value by the ratio fixed by Cabinet Order within the limit of 50%, the insurance contract shall be null and void with respect to the excessive portion.
(Insurance Money)
Article 14. The amount of money to be compensated under the D class insurance by the Government shall be the amount of money obtained by multiplying, by the ratio of the amount insured to the amount of the insurable value, the balance between the amount, which is part of the insurable value, of the expense paid by producer for the purpose of advertising the said goods and the amount obtained by multiplying, by the rate of recovering, the amount of money to be considered as that received on account of the payment of the said expense out of the amount received by the producer as the price of goods exported to the said area during the term of recovering.