Foreign Exchange Control Order. Copyright Roderick Seeman

Article 14 (Capital Transactions Requiring the License of the Minister of International Trade & Industry)

1. Capital transactions for which the Minister of International Trade & Industry can impose an obligation to obtain a license based on the provisions of Article 24, Paragraph 1 of the Law, shall be the transactions related to the creation, alteration, or extinction of claimable assets (excluding transactions for the settlement of international commercial transactions where the term from the creation of the claimable assets related to the said transaction to the extinction thereof is within one year) based on the contracts listed in the following:

(1) From among those contracts in which an exchange resident who imports goods, makes monetary loans to the other party to the said import contract which is directly related to the said contract to import goods, those which have in their contents a set-off (including those which are deemed substantially set-offs. In the next Item, the same) of all of the credits based on the said lending contract for all or a part of the price of the goods of the said import contract;

(2) From among those contracts in which an exchange resident who exports goods, received monetary loans from the other party to the said export contract which is directly related to the said contract to export goods, those which have in their contents a set-off of all of the obligations based on the said borrowing contract for all or a part of the payments for the said export of goods.

(3) Guarantee contracts for claimable liabilities which an exchange resident who is to export or import goods will execute with a non-exchange resident and which are listed in the following:

(a) Guarantee contracts which are executed in accordance with the conditions for bidding in relation to the export or import of the said goods;

(b) Performance guarantee contracts of export or import contracts of the said goods, contracts to guarantee the return of advance payments or advance receipts of the price of the said goods and other guarantee contracts which are directly related to the export or import contracts of the said goods and are made in accordance with the provisions of those contracts;

(4) Among those contracts to lend money or to borrow money which are made between an exchange resident who is a party to a contract related to the transfer of mining rights, industrial property rights or other rights similar to these or establishing rights to use these rights (hereinafter in this article referred to as "transfer, etc. of mining rights, etc.") and the other party to the said contract which is based on the contract for the transfer, etc., of mining rights, etc., those which have in their contents set-offs of the total amount of the credit or debt based on the said lending contracts or borrowing contracts, for all or a part of the compensation for the transfer, etc., of the mining rights, etc.,;

(5) Guarantee contracts executed by an exchange resident who is a party to a contract relating to the transfer, etc., of mining rights, etc., with an exchange non-resident based on the said contract.