Foreign Exchange Control Order. Copyright Roderick Seeman

CHAPTER IV CAPITAL TRANSACTIONS,

ETC.

Article 9 (Current Operating Expenses, etc.)

The transfer of funds to be designated by Cabinet Order as provided for in Article 20, Item 11 of the Law shall be the transfer of funds listed in the following:

(1) Transfers of funds relating to personnel expenses, light, heating, water and other general administration expenses necessary for the operation of an office (excluding those related to the establishment or expansion of a branch, factory or other place of business);

(2) Concerning transactions listed in the following (a) through (c) which are made by offices in Japan of corporations, the transfers of funds as designated in the said (a) through (c), which are made between the said offices in Japan of corporations and offices in foreign countries:

(a) On export and import of goods

Transfers of funds, such as for the prices of the export or import of the said goods, or the transport charges, insurance fees or other funds directly related to the export or import of the said goods;

(b) Transactions related to the trading of goods requiring the movement of goods between foreign countries.

Transfers of funds, such as prices in trading transactions of the said goods related to the said transactions, or the transport charges, insurance fees or other funds directly related to the said transactions;

(c) Service transactions

Transfers of compensation for the said service transactions or funds directly related to the said service transactions.

2. The "service transactions" of Item (c) of the preceding paragraph means transactions with the objective of providing labor or conveniences.