SCAPIN-1926/3: PROCEDURES FOR HANDLING PRIVATE EXPORT CONTRACTS AND LICENSES TO EXPORT
GENERAL HEADQUARTERS
SUPREME COMMANDER FOR THE ALLIED POWERS
APO 500
27 January 1949
AG 091.31
(9 Aug 48)
ESS/FTC
(SCAPIN-1926/3)
| MEMORANDUM FOR | JAPANESE GOVERNMENT. |
|---|---|
| SUBJECT | Procedures for Handling Private Export Contracts and Licenses to Export. |
1. Reference is Memorandum for the Japanese Government from General Headquarters, Supreme Commander for the Allied Powers, AG 091.31 (9 Aug 48) ESS/FTC, SCAPIN 1926, subject: Export Trade, dated 9 August 1948.
2. To permit more expeditious handling and review of export contracts under procedures which have been established by the Japanese Government in accordance with paragraph 3 of the above referenced memorandum it is desired that the provisions of this memorandum be effective as of 1 February 1949.
3. The Japanese Government will continue to be responsible for approval of export contracts in accordance with the policies prescribed by the Supreme Commander for the Allied Powers. Validation by the Supreme Commander for the Allied Powers of export contracts will not be required except for those contracts covering exports calling for payment under such open account agreements as may be specified by the appropriate agency of General Headquarters, Supreme Commander for the Allied Powers.
4. The Japanese Government will continue to be responsible for approval of the Application for License to Export (Form IE 202) in accordance with policies prescribed by the Supreme Commander for the Allied Powers. Validation by the Supreme Commander for the Allied Powers of export licenses will not be required except for licenses covering exports of commodities as may be specified by the appropriate agency of General Headquarters, Supreme Commander for the Allied Powers, provided:
a. The export falls within the approved export program.
b. The export price is at or above approved “floor” price.
c. The payment is arranged in U. S. Dollars or convertible Pounds Sterling or in accordance with other payment arrangements entered into by the Supreme Commander for the Allied Powers. Payment or credit under special payment arrangements must be made on or before the date of shipment of goods.
5. The Japanese Government will revise current export procedures to permit prompt and adequate distribution of appropriate documents in accordance with provisions outlined herein.
6. Direct communication between appropriate agencies of the Japanese Government and General Headquarters, Supreme Commander for the Allied Powers, is authorized to implement this memorandum.
FOR THE SUPREME COMMANDER:
R.M. LEVY,
Colonel, AGD,
Adjutant General.
LIST NO. 1
LIST OF EXPORT COMMODITIES FOR WHICH SCAP VALIDATION OF THE EXPORT LICENSE IS REQUIRED
1. Those commodities or raw materials on the SCAP approved import program as such, but not items manufactured from such commodities or materials.
2. Non-ferrous metal or ferro-alloy controlled by BT 48-2973, 7 September 1948, subject: Non-Ferrous Metals.
3. Government owned scrap, ferrous and non-ferrous
4. Ships
5. Rolling Stock
6. Machine Tools
7. Those items requiring the use of precious metals except as specifically directed.
8. Those commodities and/or materials requiring special handling or special payment terms, or which require contracts on other than standard forms.
9. Textiles
MEMORANDUM FOR RECORD: (SCAPIN - 1926/3)
FEP/SJJ/JMC/cu
21 January 1949
1. It is proposed to streamline the processing of export licenses and contracts by establishing definite criteria to be used by the Board of Trade in approving contracts and licenses and to validate export contracts and/or licenses by a SCAPIN for the Board of Trade rather than by specific case validation wherever it is feasible to do so.
2. As far as the Seller of Japanese goods and foreign Buyer is concerned, the change in procedure will mean only two things:
a. The number of copies of documents which need be filed would be drastically reduced; i. e. contracts from seven to four and export licenses from twelve to six.
b. The elapsed time in the approval of the export contracts will be greatly reduced.
3. Within the Board of Trade and SCAP private exports will be divided into three catagories:
a. Contracts calling for payment under Open Account arrangements will be handled as at present since it is necessary that the contract provisions be reviewed by SCAP (ESS) in the light of existing payment arrangements.
b. Exports of certain products over which close supervision as to price must be maintained. These are primarily steel ships, rolling stock and textiles. In these cases the export license will require SCAP validation but the export contract will not Exporters may, therefore, begin preparation for export on the approval by the Board of Trade of the export contract. If the arrangement is entered into in good faith, it will in almost every case be validated by SCAP and thus the exporter may prepare for the production pending validation of the export license.
c. In all other cases, validation of the export is given on a "blanket" basis, provided it meets the general conditions which relate to the export program, the approved export "floor" prices and the approved payment provisions.
4. In every case, whether or not the Board of Trade had approved the contract and/or license, the contract and the license will be forwarded to SCAP in the same manner now being followed. These documents will be subject to post review by SCAP who can revoke the Board of Trade approval. In at least 95% of the cases, SCAP will have opportunity to review the contract long before actual shipment.
5. It is expected that the change in procedure will eliminate, to a very great extent, the administration burden on ESS personnel which will permit a greater proportion of their time to be spent on plans and policy matters and in closer supervision of Japanese Foreign Trade Agencies. The proposed changes will materially reduce the red type in processing contracts which is in consonance with recent JCS directives from Washington.
6. The plan has the approval of ESS/TEX and ESS/RP. See check notes attached. ESS/FC initially objected to the plan but withdrew objections at a conference 6 January 1949. ESS/FEN (Mr. Allison) at the same conference indicated concurrence.
3 incls as indicated J. M. Capron 26-8593
F. E. P.
