Foreign Exchange Control Order. Copyright Roderick Seeman

Article 7 (Payments, etc., Based on Special Settlement Methods)

1. The special methods to be designated by Cabinet Order as provided for in Article 17 of the Law shall be the methods listed in the following (hereinafter referred to as "special settlement methods" in this article, Article 20 and Article 24):

(1) Settlement methods based on credit or debit entries in accounts;

(2) Settlement methods with terms(time periods) which are classified as periods designated by the Minister of Finance as special settlement periods;

(3) In addition to the methods listed in the preceding 2 items methods as designated by the Minister of Finance as special methods for settling claimable assets and claimable liabilities between exchange residents and non-residents.

2. In those situations where an exchange resident makes payments, etc., in accordance with the license received under Paragraph 2 of the preceding Article, Article 11, Paragraph 3 or Article 15, Paragraph 2,

in those situations where an exchange resident is to make payments, etc., in accordance with the license or approval received based on the provisions of law or regulations set forth in Item 1 or Item 2, or in those situations where an exchange resident is to make payments, etc., as permitted or approved under the orders listed in Item 3 or Item 4, the exchange resident may make payments, etc., based on special settlement methods, without receiving the license of the Minister of Finance or the Minister of International Trade & Industry based on the provisions of Article 17 of the Law. The same shall apply concerning also those situations where the Minister of Finance or the Minister of International Trade & Industry designates method of payments, etc. that, viewed from the amount of money or parties involved in the payments, etc., or the substance of the transaction or activity which would become the cause of the payments, etc., or other matters, are of no particular obstacle to the achievement of the objectives of the Law.

(1) Article 21, Paragraph 1 of the Law or Article 25, Paragraph 1 or 3 of the Law.

(2) Article 3, Paragraph 1 of the the Cabinet Order Relating to Acquisition of Rights of Foreign Governments Related to Real Property (Cabinet Order No. 311 of 1949). Article 3, Paragraph 1.

(3) Article 2, Paragraph 1 or Paragraph 8, Article 4 or Article 12, Paragraph 1 of the Export Trade Control Order (Cabinet Order No. 378 of 1949).

(4) Article 4, Paragraph 1 or Paragraph 2, Article 5, Article 14, or Article 20, Paragraph 1 of the Import Trade Control Order (Cabinet Order No. 414 of 1949).

3. When an exchange resident seeks to receive the license of the Minister of Finance or the Minister of International Trade & Industry based on the provisions of Article 17 of the Law, he must make application for the said license based on the procedures as determined by Ministry of Finance Ordinance or Ministry of International Trade & Industry Ordinance.