International Trade and Investment Insurance Act
Table of Contents
Chapter I General Provisions (Articles 1 and 2)
Chapter II Nippon Export and Investment Insurance
Section 1 General Provisions (Articles 3 through 6)
Section 2 Officers and Employees (Articles 7 through 11)
Section 3 Business Operations (Articles 12 through 16)
Section 4 Finance and Accounting (Articles 17 through 30)
Section 5 Miscellaneous Provisions (Articles 31 through 38)
Chapter III Trade Insurance
Section 1 General Provisions (Articles 39 through 43)
Section 2 General Trade Insurance (Articles 44 through 47)
Section 3 Trade Insurance for Capital Contributing Foreign Corporations, etc. (Articles 48 through 50)
Section 4 International Trade Loan Insurance (Articles 51 through53)
Section 5 Exchange Risk Insurance (Articles 54 through 56)
Section 6 Export Bill Insurance (Articles 57 through 61)
Section 7 Export Guarantee Insurance (Articles 62 through 65)
Section 8 Advance Payment Insurance (Articles 66 through 68)
Section 9 Overseas Investment Insurance (Articles 69 and 70)
Section 10 Overseas Untied Loan Insurance (Articles 71 through 73)
Section 11 Swap Insurance (Articles 74 and 75)
Section 12 Letter of Credit Confirmation Insurance (Articles 76 through 78)
Chapter IV Penal Provisions (Articles 79 through 82)
Supplementary Provisions
Chapter I General Provisions
(Purpose)
Article 1  The purpose of this Act is to promote the sound development of international trade and other international transactions through the establishment of a system of insurance of the risk of funds transfer transactions and other risks that occur in international trade and other international transactions, which cannot be covered by ordinary insurance.
(Definitions)
Article 2  (1) The term "export contract" as used in this Act means a contract to export goods that are produced, processed, or collected in Japan, and which provides for the matters specified by Cabinet Order.
(2) The term "exporter" as used in this Act means a party to an export contract that exports goods.
(3) The term "international intermediary trade contract" as used in this Act means a contract between two countries for the sale or lease of goods produced, processed or collected in one region of a foreign country to another foreign country by a Japanese corporation or Japanese citizen, and which provides for the matters specified by Cabinet Order.
(4) The term "international trade intermediary" as used in this Act means a party to an international intermediary trade contract that sells or leases goods.
(5) The term "technical cooperation contract" as used in this Act means a contract for the provision of technologies or services related to the technologies by a Japanese corporation or Japanese citizen to a foreign government, local government or equivalent entity (referred to below as a "foreign government, etc."), and which provides for the matters specified by Cabinet Order.
(6) The term "technology provider" as used in this Act means a party to a technical cooperation contract that provides technologies or services related to the technologies.
(7) The term "supply contract" as used in this Act means a contract to produce, process, or collect in Japan goods that are to be exported by an exporter based on an export contract, and deliver the goods to the exporter.
(8) The term "producer" as used in this Act means a person that produces, processes or collects goods in Japan for the purpose of export.
(9) The term "capital contributing foreign corporation, etc." as used in this Act means a foreign corporation or foreign citizen to which a Japanese corporation or Japanese citizen has made an equity investment (including a foreign corporation or foreign citizen that has a continuous economic relationship, such as dispatch of officers with a Japanese corporation or Japanese citizen), and which is provided for by Order of the Ministry for Economy, Trade and Industry.
(10) The term "sales contract of capital contributing foreign corporation, etc." as used in this Act means a contract for the sale or lease by a capital contributing foreign corporation, etc. of goods that are produced, processed or collected in a region of the foreign country where its head office or principal office is located, and which provides for the matters specified by Cabinet Order.
(11) The term "international intermediary trade contract of capital contributing foreign corporation, etc." as used in this Act means a contract for goods that are produced, processed or collected in a region of one country (excluding the foreign country where its head office or principal office is located) to be sold or leased in a region of a different country by a capital contributing foreign corporation, etc. (excluding the foreign country where its head office or principal office is located), and which provides for the matters specified by Cabinet Order.
(12) The term "technical cooperation contract of capital contributing foreign corporation, etc." as used in this Act means a contract for the provision of technologies or services related to the technologies by a capital contributing foreign corporation, etc., and which provides for the matters specified by Cabinet Order.
(13) The term "international trade loan" as used in this Act means the acquisition of claims related to loans to be used as funds to pay the expenses stated below, or government bonds, company bonds, or other equivalent bond certificates issued by an international organization, foreign government, etc. or foreign corporation for procuring the relevant funds (referred to below as "international trade loan claims, etc."); or the defrayment of debts of an international organization, foreign government, etc., foreign corporation, or foreign citizen to be appropriated to the relevant funds, or the guarantee obligations (limited to those for which it is specified that a person having performed those obligations acquires the right to reimbursement for the amount of the performance from the principal debtor) related to government bonds, company bonds, or other equivalent bond certificates issued by an international organization, foreign government, etc. or foreign corporation for procuring the relevant funds, which is conducted by a Japanese corporation, Japanese citizen, international organization, foreign government, etc., foreign corporation, or foreign citizen against an international organization, foreign government, etc., foreign corporation, or foreign citizen:
(i) purchase price or rental fees of goods based on an export contract;
(ii) purchase price or rental fees of goods based on an international intermediary trade contract;
(iii) costs of technologies or services provided based on a technical cooperation contract.
(14) The term "export guarantee" as used in this Act means any guarantee stated as follows which provides for the amount of guarantee and other matters specified by Cabinet Order:
(i) a guarantee (meaning a guarantee to pay penalty fees or similar monies, or, in lieu of the relevant payment, to perform all or part of the principal obligations on behalf of the principal debtor, or to have a third party perform those obligations; the same applies in the following item) for the counterparty to a tender concerning an export contract or a technical cooperation contract (referred to below as a "tender"), for obligations based on the relevant tender pursuant to the guarantee clause included in the terms of the relevant tender;
(ii) a guarantee for the counterparty to an export contract or a technical cooperation contract for obligations based on the relevant contract pursuant to the guarantee clause included in the contract;
(iii) a guarantee for the payment to a person that has made a guarantee stated in the preceding two items (including a guarantee stated in the preceding two items falling under this item) (the person is referred to below as a "guarantor") of the compensation which the principal debtor bears obligation to pay when the relevant guarantor performs the obligations pursuant to the terms of the relevant guarantee.
(15) The term "advance payment contract" as used in this Act means a contract for the purchase of goods that are produced, processed or collected in a region of a foreign country (limited to those to be delivered to Japan or a region of another foreign country) by a Japanese corporation or Japanese citizen, which is concluded on the condition that all or part of the purchase monies or lease fees for the goods are paid before the shipping date of the goods, and which provides for the matters specified by Cabinet Order.
(16) The term "prepaid purchaser" as used in this Act means a party to an advance payment contract that purchases goods.
(17) The term "overseas investment" as used in this Act means the types of investment stated as follows which are undertaken by a Japanese corporation, Japanese citizen, or capital contributing foreign corporation, etc.:
(i) the acquisition of shares or other equity (referred to below as "shares, etc.") in a foreign corporation;
(ii) the acquisition of rights relating to real estate or facilities to be used in business activities conducted outside of Japan, mining rights, industrial property rights, or other rights or similar interests (referred to below as "rights relating to real estate, etc.").
(18) The term "overseas untied loan" as used in this Act means the acquisition of claims related to loans to be appropriated to funds necessary for business activities conducted outside of Japan, or of government bonds, company bonds, or other equivalent bond certificates issued by an international organization, foreign government, etc. or foreign corporation for procuring the relevant funds (referred to below as "overseas untied loan receivables, etc."); or the defrayment of debts to be appropriated to the funds of a Japanese corporation, Japanese citizen, international organization, foreign government, etc., foreign corporation, or foreign citizen, or of the guarantee obligations (limited to those for which it is specified that a person having performed those obligations acquires the right to reimbursement for the amount of the performance from the principal obligor) related to government bonds, company bonds, or other equivalent bond certificates issued by an international organization, foreign government, etc. or foreign corporation for procuring the funds, which is conducted by a Japanese corporation, Japanese citizen, international organization, foreign government, etc. foreign corporation, or foreign citizen against a Japanese corporation, Japanese citizen, international organization, foreign government, etc., foreign corporation, or foreign citizen; provided, however, that regarding the following, the loan is limited to what is necessary for business activities using trade goods exported by a Japanese corporation or Japanese citizen or other business activities related to external transactions that are specified by Order of the Ministry of Economy, Trade and Industry as business activities especially necessary for promoting the sound development of external transactions:
(i) a loan provided by an international organization, foreign government, etc., foreign corporation or foreign citizen;
(ii) a loan to a Japanese corporation or Japanese citizen for funds necessary for business activities conducted outside of Japan.
(19) The term "letter of credit confirmation contract" as used in this Act means a contract in which a bank prescribed in Article 2, paragraph (1) of the Banking Act (Act No. 59 of 1981) or any other person specified by Cabinet Order (referred to below as a "letter of credit verifier") promises to pay, to an exporter, international trade intermediary, or technology provider, an amount of money that corresponds to the purchase monies or lease fees for trade goods based on an export contract, the purchase monies or lease fees for trade goods based on an international intermediary trade contract, or the consideration for the provision of technologies or services based on a technical cooperation contract, to the person issuing the letter of credit in connection with that export contract, international intermediary trade contract, or technical cooperation contract (referred to below as a "letter of credit issuer").
Chapter II Nippon Export and Investment Insurance
Section 1 General Provisions
(Purpose of NEXI)
Article 3  Nippon Export and Investment Insurance (referred to below as "NEXI") is to be a stock company whose purpose is to conduct the business of providing insurance against the risks in international trade which cannot be covered by ordinary insurance.
(Shares Held by the Government)
Article 4  The government must hold all the issued shares of NEXI at all times.
(Equity Investment by the Government)
Article 5  (1) If the government finds it to be necessary, it may make an investment in NEXI within the amount specified in the budget.
(2) When the government makes an investment under the provisions of the preceding paragraph, notwithstanding the provisions of Article 445, paragraph (2) of the Companies Act (Act No. 86 of 2005), NEXI may choose not to record the amount exceeding half of the amount of the investment as stated capital. In this case, the term "this Act" in paragraph (1) of that Article is deemed to be replaced with "this Act or the Trade and Investment Insurance Act (Act No. 67 of 1950)."
(Restriction on Use of the Trade Name)
Article 6  No person other than NEXI is permitted to use the term "Nippon Export and Investment Insurance" in the trade name.
Section 2 Officers and Employees
(Resolution on Appointment and Dismissal of Officers)
Article 7  (1) Resolutions on the appointment and dismissal of officers (meaning directors, executive officers, and company auditors; the same applies below) of NEXI do not become effective unless authorized by the Minister of Economy, Trade and Industry.
(2) Resolutions on the appointment and dismissal of the representative directors or representative executive officers of NEXI do not become effective unless authorized by the Minister of Economy, Trade and Industry.
(Ineligibility of Officers)
Article 8  Employees of the national government or local governments (excluding part-time employees) may not become officers of NEXI.
(Prohibition of Officers Holding Additional Positions)
Article 9  An officer, etc. (excluding part-time officers, etc.; the same applies below in this Article) of NEXI must not become an officer of any for-profit organization other than NEXI or engage in any business for profit; provided, however, that this does not apply when the Minister of Economy, Trade and Industry has given approval after deeming that this will not interfere with the performance of the duties of the officer, etc.
(Duty of Confidentiality of Officers, Accounting Advisors and Employees)
Article 10  Officers, etc., accounting advisors (if the accounting advisor is a corporation, a member responsible for carrying out those duties; the same applies in the following Article) and employees of NEXI must not disclose or misappropriate any secret that has come to their knowledge in the course of duties. The same also applies after they have left their positions.
(Status of Officers, Accounting Advisors and Employees)
Article 11  Regarding the application of the Penal Code (Act No. 45 of 1907) and other penal provisions, officers, etc., accounting advisors, and employees of NEXI are deemed to be employees engaged in public service pursuant to laws and regulations.
Section 3 Business Operations
(Scope of Business Operations)
Article 12  (1) To achieve the purpose referred to in Article 3, NEXI is to conduct the following business operations:
(i) international trade insurance business under the provisions of the following Chapter;
(ii) business operations incidental to those referred to in the preceding item.
(2) In addition to the business operations referred to in the preceding paragraph, to the extent that it does not hinder the performance of the relevant business operations, NEXI may conduct the following business operations:
(i) with an international organization, foreign government, etc., or foreign corporation conducting insurance (including reinsurance) business as a counterparty, reinsurance of insurance liabilities incurred by these entities regarding losses covered by international trade insurance or other similar types of losses;
(ii) with a Japanese corporation as a counterparty, reinsurance of insurance liabilities incurred by the corporation as a result of underwriting insurance other than the international trade insurance (excluding ordinary insurance) that is specified by Cabinet Order as necessary for promoting the sound development of international transactions.
(3) The reinsurance premium rate for the reinsurance referred to in the items of the preceding paragraph underwritten by NEXI must be determined so as not to hinder the sound operation of the business referred to in paragraph (1).
(4) With the authorization of the Minister of Economy, Trade and Industry, in addition to the business activities referred to in paragraphs (1) and (2), NEXI may make capital contributions to a foreign corporation conducting insurance (including reinsurance) business regarding losses covered by international trade insurance or other similar types of losses.
Article 13  With an international organization, foreign government, etc., or foreign corporation conducting insurance (including reinsurance) business as a counterparty, NEXI may reinsure the insurance liabilities it incurs pursuant to this Act regarding losses covered by international trade insurance or other similar types of losses.
(Entrustment of Business Operations)
Article 14  (1) NEXI may entrust part of the business operations referred to in Article 12, paragraph (1), item (i) (excluding the conclusion of insurance contracts) to a financial institution, subject to the authorization of the Minister for Economy, Trade and Industry.
(2) Notwithstanding the provisions of other Acts, financial institutions may be entrusted with and conduct the business operations under the provisions of the preceding paragraph.
(3) Officers and employees of a financial institution which has been entrusted with business operations pursuant to the provisions of paragraph (1) (referred to below as an "entrusted financial institution") who are engaged in the relevant business operations, regarding the application of the Penal Code and other penal provisions, are deemed to be employees engaged in public service pursuant to laws and regulations.
(Criteria for Underwriting International Trade Insurance and for Underwriting Reinsurance)
Article 15  (1) The Minister of Economy, Trade and Industry is to establish the criteria with which NEXI is to comply when deciding on the underwriting of international trade insurance (referred to as the "criteria for underwriting international trade insurance" in the following paragraph and paragraph (1) of the following Article), and the criteria with which NEXI is to comply when deciding on the underwriting of reinsurance (referred to as the "criteria for underwriting reinsurance" in the following paragraph and paragraph (1) of the following Article).
(2) When the Minister of Economy, Trade and Industry has established the criteria for underwriting international trade insurance and the criteria for underwriting reinsurance pursuant to the provisions of the preceding paragraph, the Minister is to publicly announce them.
(Decision on Underwriting)
Article 16  (1) When NEXI intends to underwrite international trade insurance or reinsurance, it must make a decision in compliance with the criteria for underwriting international trade insurance or the criteria for underwriting reinsurance.
(2) When NEXI intends to make a decision on the underwriting of international trade insurance or reinsurance (limited to the underwriting specified by Order of the Ministry of Economy, Trade and Industry), it must notify the Minister of Economy, Trade and Industry of that fact in advance and specify a reasonable period of time to give the Minister the opportunity to express opinions.
Section 4 Finance and Accounting
(Business Year)
Article 17  The business year of NEXI commences on April 1 of each year and ends on March 31 of the following year.
(Business Plan)
Article 18  NEXI must formulate a business plan for each business year and obtain the authorization of the Minister of Economy, Trade and Industry before the commencement of every business year, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry. The same applies when it intends to amend the business plan.
(Resolution of Dividends of Surplus)
Article 19  Resolutions on dividends of surplus and other dispositions of surplus (excluding dispositions of losses) of NEXI do not become effective unless authorized by the Minister of Economy, Trade and Industry
(Financial Statements)
Article 20  NEXI must submit a balance sheet, profit and loss statement, and any other documents and business reports specified by Order of the Ministry of Economy, Trade and Industry, as well as their annexed detailed statements (referred to as "financial statements" in Article 81, item (iv)) to the Minister of Economy, Trade and Industry within three months from the end of each business year.
(Statement of Calculation Procedures for Policy Reserves)
Article 21  (1) NEXI must prepare a statement of calculation procedures for policy reserves and obtain the authorization of the Minister of Economy, Trade and Industry. The same applies when it intends to amend the statement.
(2) The matters to be stated in a statement of calculation procedures referred to in the preceding paragraph is specified by Order of the Ministry of Economy, Trade and Industry.
(3) When an application for the authorization referred to in paragraph (1) is filed, the Minister of Economy, Trade and Industry must examine whether or not the relevant statement of calculation procedures is in conformity with the criteria specified by Order of the Ministry of Economy, Trade and Industry.
(4) When the Minister of Economy, Trade and Industry finds it necessary for promoting the sound development of international transactions or protecting the insured persons or persons who are to receive an insurance payment due to a change in circumstances, the Minister may order NEXI to change the matters contained in the statement of calculation procedures for policy reserves for which the Minister has given the authorization referred to in paragraph (1).
(Policy Reserves)
Article 22  NEXI must set aside a policy reserve to prepare for future performance of obligations under trade insurance contracts or reinsurance contracts (referred to as "insurance contracts, etc." in the following Article and Article 37, paragraphs (1) and (4)) at the end of each business year, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.
(Outstanding Claims Reserve)
Article 23  When NEXI has any payments due, such as insurance proceeds for international trade insurance or reinsurance proceeds for reinsurance (referred to below as "insurance proceeds, etc." in this Article), under insurance contracts, etc. (including any other equivalent payments specified by Order of the Ministry of Economy, Trade and Industry) that have not been recorded as expenditures for insurance claims, etc., NEXI must set aside a reserve for outstanding claims at the end of each business year, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.
(Bonds and Borrowings)
Article 24  (1) When NEXI intends to issue bonds or borrow funds with a repayment period longer than a year, it must obtain the authorization of the Minister of Economy, Trade and Industry.
(2) The provisions of the preceding paragraph do not apply to cases in which NEXI has come to newly assume obligations as a result of issuing a bond certificate to deliver to a person who has lost it, pursuant to the provisions of Cabinet Order.
(General Security)
Article 25  (1) Bondholders of NEXI have the right to have their claims satisfied, in preference to other creditors regarding the property of NEXI.
(2) The statutory lien referred to in the preceding paragraph is ranked next in priority to the general statutory lien under the provisions of the Civil Code (Act No. 89 of 1896).
(Government Guarantee)
Article 26  (1) Notwithstanding the provisions of Article 3 of the Act on Restrictions on Government Financial Assistance for Corporations (Act No. 24 of 1946), the government may enter into a guarantee contract for obligations related to bonds issued or borrowings (limited to borrowings with a repayment period longer than a year; the same applies in the following Article and Article 28) made by NEXI as referred to in Article 24, paragraph (1) (excluding obligations for which the government may enter into a guarantee contract based on the provisions of Article 2, paragraph (1) of the Act on Special Measures Related to the Acceptance of Foreign Capital from the International Bank for Reconstruction and Development, etc. (Act No. 51 of 1953)), within the limit of the amount approved by the Diet.
(2) Beyond the provisions of the preceding paragraph, the government may enter into a guarantee contract for obligations related to a bond certificate or coupon that NEXI issues to deliver to a person who has lost a bond certificate or its coupon, pursuant to the provisions of Cabinet Order.
(Reimbursement Plans)
Article 27  NEXI must formulate a plan for redemption of its bonds and repayment of its borrowings and obtain the authorization of the Minister of Economy, Trade and Industry before the commencement of every business year, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry. The same applies when it intends to amend the plan.
(Financial Measures)
Article 28  When even by issuing bonds or making borrowings pursuant to the provisions of Article 24, paragraph (1) it is deemed difficult for NEXI to procure funds necessary for conducting business operations prescribed in Article 12, paragraph (1) or (2) or funds to be appropriated for redemption of bonds or repayment of borrowings, the government is to take necessary financial measures within the amount specified in its budget.
(Investment of Surplus Funds)
Article 29  NEXI must not invest the surplus funds that occurred in the course of its operations, except for the cases where it uses the following methods:
(i) acquisition of government bonds, local government bonds, government guaranteed bonds (meaning bonds for which the government guarantees the redemption of the principal and the payment of the interest) or any other securities designated by the Minister of Economy, Trade and Industry;
(ii) deposit in a bank or other financial institution designated by the Minister of Economy, Trade and Industry;
(iii) deposit in a money trust in a financial institution that operates trust business (meaning a financial institution that has obtained the authorization referred to in Article 1, paragraph (1) of the Act on Engagement in Trust Business by Financial Institutions (Act No. 43 of 1943));
(iv) holding of negotiable certificate of deposit;
(v) any other method specified by Order of the Ministry of Economy, Trade and Industry as equivalent to the methods stated in the preceding items.
(Delegation to Order of the Ministry of Economy, Trade and Industry)
Article 30  Beyond what is provided for in this Act and Cabinet Orders based on this Act, necessary matters related to the finance and accounting of NEXI are provided for by Order of the Ministry of Economy, Trade and Industry.
Section 5 Miscellaneous Provisions
(Supervision)
Article 31  (1) NEXI is to be supervised by the Minister of Economy, Trade and Industry pursuant to the provisions of this Act.
(2) When the Minister of Economy, Trade and Industry finds any violation of laws and regulations or of the articles of incorporation or significant impropriety regarding the operation or management of NEXI, or considers it necessary for the enforcement of this Act, the Minister may issue orders for NEXI that are necessary for supervising its business operations.
(Reports and Inspections)
Article 32  (1) When the Minister of Economy, Trade and Industry considers it necessary for the enforcement of this Act, the Minister may have NEXI or an entrusted financial institution make a report, or have its officials enter the office or any other facilities of NEXI or the entrusted financial institution to perform an inspection of accounting books, written documents or other items; provided, however, that regarding an entrusted financial institution, the inspection may only be performed within the scope of entrusted business operations.
(2) Officials performing on-site inspections pursuant to the provisions of the preceding paragraph must carry an identification card and present it to the persons concerned.
(3) The authority to perform on-site inspections under the provisions of paragraph (1) must not be construed as being the same as the authority for criminal investigation.
(Amendment to Articles of Incorporation)
Article 33  Resolutions on amendments to the articles of incorporation of NEXI do not become effective unless authorized by the Minister of Economy, Trade and Industry.
(Merger, Company Split, Share Exchange, Partial Share Exchange, Transfer and Acquisition of Business, and Dissolution)
Article 34  Notwithstanding the provisions of Part II, Chapter 7 and Chapter 8, Part V, Chapter 2, Chapter 3, and Chapter 4, Section 1 and Section 2 of the Companies Act, merger, company split, share exchange, partial share exchange, transfer and acquisition of business in whole or in part in which NEXI is a party, and dissolution of NEXI provided for by separate Acts.
(Consultation with the Minister of Finance)
Article 35  The Minister of Economy, Trade and Industry must consult with the Minister of Finance in the following cases:
(i) when giving the authorization referred to in Article 14, paragraph (1), Article 18, Article 19, Article 21, paragraph (1), Article 24, paragraph (1), Article 27, or Article 33 (limited to a change to the total number of shares that NEXI may issue);
(ii) when establishing Order of the Ministry for Economy, Trade and Industry referred to in Article 21, paragraph (2) or paragraph (3), Article 22, or Article 29, item (v);
(iii) when making the designation under the provisions of Article 29, item (i) or item (ii)
(Grants Related to Exemption from Claims of NEXI Deemed Necessary for Fulfilling International Agreements)
Article 36  When NEXI has granted an exemption for or has waived claims that it obtained regarding an international trade insurance or reinsurance relating to a foreign government, etc., foreign corporation, or foreign citizen, or the right to receive recovery (referred to below as "claims, etc." in this Article) and the exemption or waiver is considered to be especially necessary in light of treaties and other international agreements Japan has signed, the government may provide NEXI with grants in the amount equivalent to the whole or part of the amount of the claims exempted or waived within the amount specified in its budget.
(Special Provisions for Corporation Taxes)
Article 37  (1) If NEXI is a corporation that files a blue tax return form for each business year and, upon setting aside a policy reserve for each business year, in order to prepare for the future performance of obligations under insurance contracts, etc. and in consideration of the risk of funds transfer transactions or other risks in international trade and other international transactions which cannot be covered by ordinary insurance and that are expected to occur in the future, has set aside an extraordinary contingency reserve out of the policy reserve, which is to be set aside in the settlement of accounts for the relevant business year (including when setting aside an extraordinary contingency reserve by creating a reserve through the appropriation of surplus by the date of the final settlement of accounts for the relevant business year), with an amount not exceeding the amount specified by Order of the Ministry of Finance through the method of tax deductibles, (when calculating the amount stated in Article 72, paragraph (1), item (i) of the Corporation Tax Act (Act No. 34 of 1965), recording the relevant amount as an expense or a loss in the settlement of accounts for the period prescribed in that paragraph) the amount set aside as an extraordinary contingency reserve is to be included in deductible expenses in calculating the amount of income for the relevant business year.
(2) When there is any amount of extraordinary contingency reserve that has been included in deductible expenses in calculating the amount of income for the business year including the day immediately preceding the first day of each business year of NEXI, in the relevant business year including the relevant preceding day, pursuant to the provisions of the preceding paragraph, the amount of the relevant extraordinary contingency reserve is to be included in gross profits in calculating the amount of income for the relevant each business year.
(3) The provisions of paragraph (1) apply only when a tax return, etc. for the business year for which NEXI seeks the application of that paragraph contains a statement on the inclusion of the amount set aside as an extraordinary contingency reserve in deductible expenses, and a detailed statement concerning the calculation of the relevant amount set aside is attached to the relevant tax return , etc.
(4) In this Article, the meanings of the terms stated in the following items are defined by the provisions of the relevant items:
(i) business year: meaning the business year prescribed in Articles 13 and 14 of the Corporation Tax Act;
(ii) blue return: meaning the blue return prescribed in Article 2, item (xxxvi) of the Corporation Tax Act;
(iii) tax deductibles: meaning that a corporation accounts for an amount as an expense or a loss prescribed in Article 2, item (xxv) of the Corporation Tax Act;
(iv) tax return, etc.: meaning the tax return, etc. prescribed in Article 2, paragraph (2), item (xxviii) of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957);
(5) Beyond what is provided for in the preceding paragraphs, necessary matters related to the application of special provisions concerning the limit to individual credit reserve for bad debts prescribed in Article 52, paragraph (1) of the Corporation Tax Act regarding monetary claims, out of those held by NEXI against a foreign government, etc. as of the end of each business year, that are specified by Order of the Ministry of Finance as monetary claims for which it is extremely difficult to receive payment due to prolonged delay in the performance of obligations by the relevant foreign government, etc. and to which the provisions of Article 52 of the Corporation Tax Act are applied, and the application of other provisions of laws and regulations concerning corporation tax regarding NEXI are specified by Cabinet Order.
(Special Provisions for Taxation Related to Registration and License Tax)
Article 38  Registration and license tax is not imposed on the registration of an increase in the amount of stated capital when NEXI has received a contribution made by the national government under the provisions of Article 5, paragraph (1).
Chapter III Trade Insurance
Section 1 General Provisions
(Types of Trade Insurance)
Article 39  Trade insurance consists of general trade insurance, trade insurance for capital contributing foreign corporations, etc., international trade loan insurance, exchange risk insurance, export bill insurance, export guarantee insurance, advance payment insurance, overseas investment insurance, overseas untied loan insurance, swap insurance, and letter of credit confirmation insurance.
(Underwriting Conditions)
Article 40  (1) NEXI must specify conditions relating to premium rates for trade insurance and other conditions for underwriting (referred to below as "underwriting conditions"), and make a notification to the Minister of Economy, Trade and Industry pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry. The same applies when it intends to change the relevant conditions.
(2) When the Minister of Economy, Trade and Industry considers that the underwriting conditions contained in a notification under the preceding paragraph do not fall under any of the following items, the Minister may order NEXI to change the relevant underwriting conditions and set a time limit:
(i) regarding the premium rates, income from the trade insurance business sufficiently covers expenditures;
(ii) the premium rates are not extremely unsuitable from the perspective of the burden of the policyholders;
(iii) specific groups of persons are not to receive unfair discriminatory treatment;
(iv) no harm will be done to the sound development of external transactions.
(3) NEXI must not underwrite trade insurance under underwriting conditions other than those for which a notification has been made under the provisions of paragraph (1).
(Cancellation of Contracts)
Article 41  When a policyholder to a trade insurance contract, insured person, or person who is to receive an insurance payment has violated the provisions of this Act (including orders based on this Act), or has violated a trade insurance contract, NEXI may decide not to pay all or part of the insurance proceeds payment based on the relevant insurance contract, or have all or part of the insurance proceeds payment returned, or cancel the relevant insurance contract into the future.
(Subrogation)
Article 42  In cases in which the losses prescribed in Article 44, paragraph (2), Article 48, paragraph (2), Article 51, paragraph (2), Article 62, paragraph (2), Article 66, paragraph (2), Article 69, paragraph (2), Article 71, paragraph (2), Article 74, paragraph (2), or Article 76, paragraph (2) have occurred regarding general trade insurance, trade insurance for capital contributing foreign corporations, etc., international trade loan insurance, export guarantee insurance, advance payment insurance, overseas investment insurance, or overseas untied loan insurance, swap insurance, or letter of credit confirmation insurance; or cases in which the bank, etc. prescribed in Article 57, paragraph (1) could not receive payment upon maturity of a bill of exchange, or has paid a bill of exchange upon receiving a request for recourse regarding export bill insurance, and when NEXI has made an insurance payment to an insured person or person who is to receive an insurance payment, NEXI acquires any rights held by the policyholders or insured persons against third parties, up to an amount equivalent to the amount of the relevant insurance payment.
(Handling of Cases in Which There Are Two or More Contracts)
Article 43  Among an export contract, international intermediary trade contract, or technical cooperation contract, in cases in which a given contract falls under two or more of these contracts, the application of the provisions of Sections 5 and 7 are specified as follows:
(i) except for the cases prescribed in the following item, in cases in which a given contract falls under both an export contract and international intermediary trade contract, a given contract falls under both an export contract and technical cooperation contract, or a given contract falls under both an international intermediary trade contract and technical cooperation contract: the relevant given contract is deemed to be an export contract when the amount of purchase monies for exported trade goods or the total sum of lease fees based on the contract (referred to below as "export payments") is equal to or exceeds the amount of purchase monies for international intermediary trade goods (meaning trade goods that an international trade intermediary sells or leases based on an international intermediary trade contract; the same applies below) or the total sum of lease fees based on the contract (referred to below as "international intermediary trade payments"), or is equal to or exceeds the amount of the consideration for the provision of technologies or services associated with technical cooperation based on the relevant contract (referred to below as "technical cooperation consideration"); the given contract is deemed to be an international intermediary trade contract when international intermediary trade payments exceed export payments or technical cooperation consideration; and the relevant given contract is deemed to be a technical cooperation contract when technical cooperation consideration exceeds export payments or is equal to or exceeds international intermediary trade payments;
(ii) in cases in which a given contract falls under an export contract, international intermediary trade contract, and a technical cooperation contract, the relevant given contract is deemed to be an international intermediary trade contract when international intermediary trade payments exceed export payments and technical cooperation consideration; the relevant given contract is deemed to be a technical cooperation contract when technical cooperation consideration exceeds export payments and is equal to or exceeds international intermediary trade payments; and the relevant given contract is deemed to be an export contract in other cases;
(iii) in cases in which a given contract is deemed to be an export contract pursuant to the provisions of the preceding two items, persons who are parties to the relevant contract, and who export trade goods and engage in the sale or lease of international intermediary trade goods, or who engage in the provision of technologies or services associated with technical cooperation are deemed to be exporters; the sale or lease of international intermediary trade goods, or the provision of technologies or services associated with technical cooperation based on the contract is deemed to be the export of trade goods (in cases in which the provisions of Article 54, paragraph (2) are applied, the trade goods specified by Cabinet Order referred to in the same paragraph, and in cases in which the provisions of Article 62, paragraph (2) are applied, the trade goods specified by Cabinet Order referred to in the same paragraph); and the purchase monies or lease fees for those international intermediary trade goods or the consideration for the provision of technologies or services associated with technical cooperation are deemed to be exported trade goods purchase monies;
(iv) in cases in which a given contract is deemed to be a technical cooperation contract pursuant to the provisions of item (i) or (ii), persons who are parties to the relevant contract and who engage in the provision of technologies or services associated with technical cooperation, and who export trade goods or engage in the sale or lease of international intermediary trade goods are deemed to be technology providers; the export of trade goods or the sale or lease of international intermediary trade goods based on the relevant contract is deemed to be the provision of technologies or services associated with technical cooperation (in cases in which the provisions of Article 62, paragraph (2) are applied, the provision of technologies or services associated with technical cooperation which is specified by Cabinet Order referred to in the same paragraph); and purchase monies or lease fees for those exported trade goods or purchase monies or lease fees for those international intermediary trade goods are deemed to be their consideration.
Section 2 General Trade Insurance
(Insurance Contracts)
Article 44  (1) NEXI may underwrite general trade insurance.
(2) General trade insurance means trade insurance indemnifying losses falling under any of the following items:
(i) losses incurred by an exporter through the inability to export trade goods based on an export contract due to a reason falling under any of the following, after the conclusion of an insurance contract (in cases in which the export of the relevant trade goods could be considered extremely difficult due to any reason falling under (a) to (e) or (j) below, including the inability to export the relevant trade goods by the date after the shipping date specified in the export contract on which the period specified in the insurance contract had passed) (the losses exclude those regarding the exported trade goods); or losses incurred by an international trade intermediary through the inability to sell or lease trade goods based on an international intermediary trade contract due to a reason falling under any of the following, after the conclusion of an insurance contract (in cases in which the sale or lease of the relevant trade goods could be considered extremely difficult due to any reason falling under (a) to (e) or (j) below, including the inability to sell or lease the relevant trade goods by the date after the shipping date specified in the international intermediary trade contract on which the period specified in the insurance contract had passed) (the losses exclude those regarding the international intermediary trade goods):
(a) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(b) restrictions or prohibitions on imports imposed in a destination country;
(c) interruptions to funds transfer transactions due to war, revolution or insurrection occurring in a foreign country;
(d) inability to import to a destination country due to war, revolution or insurrection occurring in that country;
(e) interruptions to transportation to a destination country due to any reason arising outside of Japan;
(f) beyond what is stated in (a) to (e), any reason which cannot be considered attributable to the parties to an export contract or international intermediary trade contract, and which occur outside of Japan;
(g) restrictions or prohibitions on exports or on the sale or lease of international intermediary trade goods pursuant to the provisions of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) (excluding the prohibitions prescribed in Article 25-2 or 53 of the relevant Act);
(h) unilateral dissolution of an export contract or international intermediary trade contract by the counterparty to the export contract or international intermediary trade contract, or the cancellation of the export contract or international intermediary trade contract by an exporter or international trade intermediary on reasonable grounds attributable to the relevant counterparty;
(i) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to an export contract or international intermediary trade contract, or other equivalent reason;
(j) delay in the performance of the obligations of the counterparty to an export contract or international intermediary trade contract for a period longer than the period specified in the insurance contract (including delays related to obligations against an exporter or international trade intermediary other than those based on the relevant export contract or international intermediary trade contract, and limited to delays which cannot be considered attributable to the exporter or international trade intermediary);
(ii) losses incurred by an exporter, who has exported trade goods based on an export contract, through the inability to collect purchase monies or lease fees for the relevant trade goods due to a reason falling under any of the following (excluding losses arising regarding exported trade goods other than those losses which have occurred regarding exported trade goods due to war, revolution or insurrection occurring in the destination country); losses incurred by an international trade intermediary, who has sold or leased trade goods based on an international intermediary trade contract, through the inability to collect purchase monies or lease fees for the relevant trade goods due to a reason falling under any of the following (excluding losses arising regarding international intermediary trade goods other than those losses which have occurred regarding international intermediary trade goods due to war, revolution or insurrection occurring in the destination country); or losses incurred by a technology provider, who has provided technologies or services associated with technical cooperation based on a technical cooperation contract, through the inability to collect the consideration for the provision of technologies or services associated with technical cooperation due to a reason falling under any of the following:
(a) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(b) war, revolution or insurrection occurring in a foreign country;
(c) beyond what is stated in (a) and (b), any reason which cannot be considered attributable to the parties to an export contract, international intermediary trade contract, or technical cooperation contract, and which occurs outside of Japan;
(d) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to an export contract, international intermediary trade contract, or technical cooperation contract, or other equivalent reasons;
(e) delay in the performance of the obligations of the counterparty to an export contract, international intermediary trade contract, or technical cooperation contract for a period longer than the period specified in the insurance contract (limited to delays which cannot be considered attributable to the exporter, international trade intermediary, or technology provider);
(iii) losses incurred by a producer of trade goods specified by Cabinet Order, who is a party to a supply contract, through the inability to deliver the relevant trade goods or collect purchase monies for the trade goods based on the supply contract as a result of the exporter having incurred losses referred to in item (i) or losses referred to in the preceding item (limited to losses due to the arising of any reason falling under (a) to (c) of the preceding item; the same applies in Article 46, paragraph (3));
(iv) losses incurred by an exporter, international trade intermediary, or technology provider through newly defrayed transportation costs and other costs specified by Cabinet Order due to a reason falling under any of (b), (e), or (g) of item (i), or (a) through (c) of item (ii) arising after the conclusion of the insurance contract;
(Insurable Value)
Article 45  For general trade insurance related to losses referred to in paragraph (2), item (ii) of the preceding Article, the insurable value is the amount of purchase monies or lease fees for trade goods based on an export contract, the amount of purchase monies or lease fees for trade goods based on an international intermediary trade contract, or the consideration for the provision of technologies or services based on a technical cooperation contract (when purchase monies or consideration is to be settled in installments in multiple time periods, the portion of the relevant purchase monies or consideration to be settled at one time)
(Insurance Proceeds)
Article 46  (1) The amount of indemnity to be provided by NEXI regarding general trade insurance related to losses referred to in Article 44, paragraph (2), item (i) is the amount obtained by multiplying the specific rate prescribed in the insurance contract (referred to below as the "specific rate") by the amount remaining after deducting the amounts stated in the following items from the amount of purchase monies based on an export contract for trade goods that an exporter was unable to export due to any reason falling under (a) through (j) of the same item (in cases in which the export of the relevant trade goods could be considered extremely difficult due to any reason falling under (a) through (e) or (j) of the same item, including trade goods which had not been exported by the date after the shipping date specified in the export contract on which the period specified in the insurance contract had passed), or from the amount of purchase monies based on an international intermediary trade contract for trade goods that an international trade intermediary was unable to sell or lease due to any reason falling under (a) through (j) of the same item (in cases in which the sale or lease of the relevant trade goods could be considered extremely difficult due to the arising of any reason falling under (a) through (e) or (j) of the same item, including trade goods which had not been sold or leased by the date after the shipping date specified in the international intermediary trade contract on which the period specified in the insurance contract had passed:
(i) the amount collected, or amount that is expected to be collected, after the appropriation of trade goods or after necessary measures have otherwise been taken for the reduction of losses;
(ii) the amount of expenses no longer necessary, due to the relevant circumstances;
(iii) the amount of profit which was expected to be earned through the export or the sale or lease of trade goods (limited to the portion of the profit related to the relevant trade goods).
(2) The amount of indemnity to be provided by NEXI regarding general trade insurance related to losses referred to in Article 44, paragraph (2), item (ii) is obtained from the insurable value by multiplying the ratio of the insured amount to the insurable value by the amount remaining after deducting the amounts stated in the following items from the amount of purchase monies, lease fees or the consideration, which cannot be collected by the settlement deadline (in case of a reason falling under (e) of the same item, by the time after the settlement deadline when the period specified in the insurance contract has passed; the same applies in item (ii)) by the exporter, international trade intermediary, or technology provider due to any reason falling under Article 44, paragraph (2), item (ii), (a) through (e):
(i) the amount of expenses no longer necessary, due to the relevant circumstances;
(ii) the amount collected after the settlement deadline.
(3) The amount of indemnity to be provided by NEXI regarding general trade insurance related to losses referred to in Article 44, paragraph (2), item (iii) is the amount obtained by multiplying the specific rate by the amount remaining after deducting the amounts stated in the following items from the amount of purchase monies based on the supply contract for trade goods that the producer was unable to deliver based on the supply contract or the portion of the amount of purchase monies that the producer was unable to collect for trade goods that the producer had delivered based on the supply contract, as a result of the exporter having incurred losses referred to in item (i) of the same paragraph or losses referred to in item (ii) of the same paragraph:
(i) the amount collected or to be collected, after the appropriation of trade goods or after necessary measures have otherwise been taken for the reduction of losses;
(ii) the amount of expenses no longer necessary, due to the relevant circumstances;
(iii) the amount of profit which was expected to be earned through the delivery of trade goods (limited to the portion of the profit related to the relevant trade goods).
(4) The amount of indemnity to be provided by NEXI regarding general trade insurance related to losses referred to in Article 44, paragraph (2), item (iv) is obtained by multiplying the specific rate by the amount remaining after deducting, from the amount of increase in cost specified by Cabinet Order referred to in item (iv) of that paragraph that is to be newly defrayed by the exporter, international trade intermediary, or technology provider due to a reason falling under item (i), (b), (e), or (g) or item (ii), (a) through (c) of that paragraph the amount acquired or to be acquired due to the amount of increase of the newly defrayed cost.
(Special Provisions Related to Export Contracts, Ancillary to Other Contracts)
Article 47  (1) Regarding the application of the provisions of Article 44, paragraph (2), item (i) in cases in which an export contract is for the export of trade goods necessary to perform part of the obligations based on a given contract for the delivery of trade goods from one region of a foreign country to another foreign country based on the relevant contract ( the given contract is to be referred to below as a "trade goods delivery contract" in this paragraph) to the party to the trade goods delivery contract who delivers the trade goods (limited to those export contracts for which the settlement deadline for all or part of any purchase monies for the exported trade goods is specified based on the reception date of all or part of the consideration for the performance of obligations based on the trade goods delivery contract), the term "or international intermediary trade contract" in (f) of that item is to be deemed to be replaced with ", international intermediary trade contract, or trade goods delivery contract (meaning the trade goods delivery contract referred to in Article 47, paragraph (1); the same applies below in this item; in (h) of the same item, the term "or counterparty of the international intermediary trade contract" is deemed to be replaced with ", counterparty of the international intermediary trade contract, or trade goods delivery contract (for a trade goods delivery contract, counterparty is to mean the party which receives the delivery of trade goods; the same applies below in this item)," the term "or international intermediary trade contract" is deemed to be replaced with ", international intermediary trade contract, or trade goods delivery contract," and the term "or international trade intermediary" is deemed to be replaced with ", international trade intermediary, or the party to a trade delivery contract that delivers the trade goods"; and the term "or international intermediary trade contract" in (i) of that item is deemed to be replaced with ", international intermediary trade contract, or trade goods delivery contract."
(2) Regarding the application of the provisions of Article 44, paragraph (2), item (ii) and paragraph (2) of the preceding Article in cases in which an export contract or technical cooperation contract is for the export of trade goods or the provision of technologies or services to perform part of the obligations based on a given contract for the delivery of trade goods or the provision of technologies or services from one region of a foreign country to another region of a foreign country based on the relevant contract (the given contract is referred to below as a "trade goods provision contract" in this paragraph) to the party to the trade goods provision contract who receives the delivery of trade goods or the provision of technologies or services (limited to those export contracts or technical cooperation contracts for which the settlement deadline for all or part of the purchase monies or lease fees for the exported trade goods or the consideration for the provision of technologies or services are specified based on the reception date of all or part of the consideration to perform the obligations based on the relevant trade goods provision contract), the term "or technical cooperation contract" in (c) of the same item is to be deemed to be replaced with ", technical cooperation contract, or trade goods provision contract (meaning the trade goods provision contract referred to in Article 47, paragraph (2); the same applies below in this item and Article 46, paragraph (2))"; the term "or counterparty of the technical cooperation contract" in (d) of that item is deemed to be replaced with ", counterparty of the technical cooperation contract, or trade goods provision contract (for a trade goods provision contract, counterparty is to mean the party which receives the delivery of trade goods or the provision of technologies or services; the same applies in (e))"; the term "or technical cooperation contract" in (e) of the same item is deemed to be replaced with ", technical cooperation contract, or trade goods provision contract"; and the term "settlement deadline" in that paragraph is deemed to be replaced with "settlement date that is specified based on the reception date of the consideration for performing the obligations based on the trade goods provision contract."
Section 3 Trade Insurance for Capital Contributing Foreign Corporations, etc.
(Insurance Contracts)
Article 48  (1) NEXI may underwrite trade insurance for capital contributing foreign corporations, etc.
(2) Trade insurance for capital contributing foreign corporations, etc. is to mean trade insurance indemnifying losses falling under any of the following items:
(i) losses incurred by a capital contributing foreign corporation, etc. through the inability to sell or lease trade goods based on a sales contract of capital contributing foreign corporation, etc. due to a reason falling under any of the following, after the conclusion of an insurance contract (in cases in which the sale or lease of the relevant trade goods could be considered extremely difficult due to any reason falling under (a) through (e) or (i) below, including the inability to sell or lease the relevant trade goods by the date after the shipping date specified in the sales contract of capital contributing foreign corporation, etc. on which the period specified in the insurance contract had passed (in cases in which a capital contributing foreign corporation, etc. sells or leases the relevant trade goods to a region of the foreign country where its head office or principal office is located, after the date of delivery)) (the losses exclude those arising regarding the trade goods sold by a capital contributing foreign corporation, etc. (meaning trade goods sold or leased by capital contributing foreign corporations, etc. based on a sales contract of a capital contributing foreign corporation, etc.; the same applies in the following item)); or losses incurred by a capital contributing foreign corporation, etc. through the inability to sell or lease trade goods based on an international intermediary trade contract of the capital contributing foreign corporation, etc. due to a reason falling under any of the following, after the conclusion of an insurance contract (in cases in which the sale or lease of the relevant trade goods could be considered extremely difficult due to any reason falling under (a) through (e) or (i) below, including the inability to sell or lease the relevant trade goods by the date after the shipping date specified in the international intermediary trade contract of the capital contributing foreign corporation, etc. on which the period specified in the insurance contract had passed (the losses exclude those arising regarding the international intermediary trade goods sold by a capital contributing foreign corporation, etc. (meaning trade goods sold or leased by capital contributing foreign corporations, etc. based on an international intermediary trade contract of a capital contributing foreign corporation, etc.; the same applies in that item)):
(a) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(b) restrictions or prohibitions on imports, or on the sale or lease of trade goods imposed in a destination country (excluding Japan; the same applies in (d) and the following item);
(c) interruptions to funds transfer transactions due to war, revolution or insurrection occurring in a foreign country;
(d) inability to import, sell or lease trade goods to a destination country due to war, revolution or insurrection occurring in that country;
(e) interruptions to transportation to a destination country due to any reason arising outside of Japan;
(f) beyond what is stated in (a) through (e), any reason which cannot be considered attributable to the parties to a sales contract of a capital contributing foreign corporation, etc. or an international intermediary trade contract of a capital contributing foreign corporation, etc., and which occurs outside of Japan;
(g) unilateral dissolution of a sales contract of a capital contributing foreign corporation, etc. or an international intermediary trade contract of a capital contributing foreign corporation, etc. by the counterparty (excluding persons specified by Cabinet Order; the same applies in (i)) to the relevant sales contract of a capital contributing foreign corporation, etc. or international intermediary trade contract of a capital contributing foreign corporation, etc., or the cancellation of the relevant sales contract of a capital contributing foreign corporation, etc. or international intermediary trade contract of a capital contributing foreign corporation, etc. by a capital contributing foreign corporation, etc. on reasonable grounds attributable to the relevant counterparty;
(h) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to a sales contract of a capital contributing foreign corporation, etc. or an international intermediary trade contract of a capital contributing foreign corporation, etc., or other equivalent reason ;
(i) delay in the performance of the obligations of the counterparty to the sales contract of a capital contributing foreign corporation, etc. or the international intermediary trade contract of a capital contributing foreign corporation, etc. for a period longer than the period specified in the insurance contract (including delays related to obligations against the capital contributing foreign corporation, etc. other than those based on the sales contract of a capital contributing foreign corporation, etc. or international intermediary trade contract of a capital contributing foreign corporation, etc., and limited to delays which cannot be considered attributable to the capital contributing foreign corporation, etc.);
(ii) losses incurred by a capital contributing foreign corporation, etc., which has sold or leased trade goods specified by Cabinet Order based on a sales contract of a capital contributing foreign corporation, etc., through the inability to collect purchase monies or lease fees for the relevant trade goods due to a reason falling under any of those stated below (excluding losses arising regarding trade goods sold by a capital contributing foreign corporation, etc. other than those losses which have occurred regarding trade goods sold by a capital contributing foreign corporation, etc. due to war, revolution or insurrection occurring in the destination country); losses incurred by a capital contributing foreign corporation, etc., which has sold or leased trade goods based on an international intermediary trade contract of a capital contributing foreign corporation, etc., through the inability to collect purchase monies or lease fees for the trade goods due to a reason falling under any of those stated below (excluding losses arising regarding international intermediary trade goods sold by a capital contributing foreign corporation, etc. other than those losses which have occurred regarding international intermediary trade goods sold by a capital contributing foreign corporation, etc. due to war, revolution or insurrection occurring in the destination country); or losses incurred by a capital contributing foreign corporation, etc., which has provided technologies or services associated with technical cooperation based on a technical cooperation contract of a capital contributing foreign corporation, etc., through the inability to collect the consideration for the provision of technologies or services associated with technical cooperation due to a reason falling under any of those stated below:
(a) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(b) war, revolution or insurrection occurring in a foreign country;
(c) beyond what is stated in (a) and (b), any reason which cannot be considered attributable to the parties to a sales contract of a capital contributing foreign corporation, etc., an international intermediary trade contract of a capital contributing foreign corporation, etc., or a technical cooperation contract of a capital contributing foreign corporation, etc., and which occurs outside of Japan;
(d) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to a sales contract of a capital contributing foreign corporation, etc., international intermediary trade contract of a capital contributing foreign corporation, etc., or technical cooperation contract of a capital contributing foreign corporation, etc.; or other equivalent reasons;
(e) delay in the performance of the obligations of the counterparty (excluding persons specified by Cabinet Order referred to in (g) of the preceding item) to a sales contract of a capital contributing foreign corporation, etc., international intermediary trade contract of a capital contributing foreign corporation, etc., or technical cooperation contract of a capital contributing foreign corporation, etc. for a period longer than the period specified in the insurance contract (limited to delays which cannot be considered attributable to the capital contributing foreign corporation, etc.);
(iii) losses incurred by a capital contributing foreign corporation, etc. through newly defrayed transportation costs and other costs specified by Cabinet Order due to a reason falling under item (i), (b) or (e), or (a) through (c) of the preceding item occurring after the conclusion of the insurance contract
(Insurable Value)
Article 49  For trade insurance for capital contributing foreign corporations, etc. related to losses referred to in paragraph (2), item (ii) of the preceding Article, the insurable value is to be the amount of purchase monies or lease fees for trade goods based on a sales contract of a capital contributing foreign corporation, etc., the amount of purchase monies or lease fees for trade goods based on an international intermediary trade contract of a capital contributing foreign corporation, etc., or the consideration for the provision of technologies or services based on a technical cooperation contract of a capital contributing foreign corporation, etc. (when purchase monies or consideration is to be settled in installments in multiple time periods, the portion of the purchase monies or consideration to be settled at one time).
(Insurance Proceeds)
Article 50  (1) The amount of indemnity to be provided by NEXI regarding trade insurance for capital contributing foreign corporations, etc. related to losses referred to in Article 48, paragraph (2), item (i) is to be the amount obtained by multiplying the specific rate by the amount remaining after deducting the amounts stated in the following items from the amount of purchase monies based on a sales contract of a capital contributing foreign corporation, etc. or international intermediary trade contract of a capital contributing foreign corporation, etc. for trade goods that a capital contributing foreign corporation, etc. was unable to sell or lease due to any reason falling under (a) to (i) of that item (in cases in which the sale or lease of the relevant trade goods could be considered extremely difficult due to any reason falling under (a) to (e) or (i) of that item, including trade goods which had not been sold or leased by the date after the shipping date provided for in the sales contract of a capital contributing foreign corporation, etc. or international intermediary trade contract of a capital contributing foreign corporation, etc. on which the period specified in the insurance contract had passed (in cases in which a capital contributing foreign corporation, etc. sells or leases the relevant trade goods based on a sales contract of a capital contributing foreign corporation, etc. to a region of the foreign country where its head office or principal office is located, after the date of delivery):
(i) the amount collected or to be collected, after the appropriation of trade goods or after necessary measures have otherwise been taken for the reduction of losses;
(ii) the amount of expenses no longer necessary, due to the relevant circumstances;
(iii) the amount of profit which was expected to be earned through the sale or lease of trade goods (limited to the portion of the profit related to the relevant trade goods).
(2) The amount of indemnity to be provided by NEXI regarding trade insurance for a capital contributing foreign corporations, etc. related to losses referred to in Article 48, paragraph (2), item (ii) is to be the amount obtained by multiplying the ratio of the insured amount to insurable value by the amount remaining after deducting the amounts stated in the following items from the amount of purchase monies or lease fees or the consideration which cannot be collected out of the insurable value by the settlement deadline (in case of a reason falling under (e) of the same item, by the time when the period specified in the insurance contract has passed after the settlement deadline; the same applies in item (ii)) by the capital contributing foreign corporation, etc. due to any reason falling under Article 48, paragraph (2), item (ii), (a) through (e):
(i) the amount of expenses no longer necessary, due to the relevant circumstances;
(ii) the amount collected after the settlement deadline.
(3) The amount of indemnity to be provided by NEXI regarding trade insurance for a capital contributing foreign corporations, etc. related to losses referred to in Article 48, paragraph (2), item (iii) is to be the amount obtained by multiplying the specific rate by the amount remaining after deducting from the amount of increase in cost specified by Cabinet Order referred to in item (iii) of the same paragraph that is to be newly defrayed by the capital contributing foreign corporation, etc. due to a reason falling under item (i), (b) or (e), or item (ii), (a) through (c) of that paragraph, the amount acquired or to be acquired due to the relevant amount of increase of the newly defrayed cost.
Section 4 International Trade Loan Insurance
(Insurance Contracts)
Article 51  (1) NEXI may underwrite international trade loan insurance.
(2) International trade loan insurance means trade insurance indemnifying losses incurred by a person having provided international trade loans through the inability to collect the principal or interest on international trade loan claims, etc. or other incidental claims specified by Cabinet Order (referred to below as "loans, etc.") due to a reason falling under any of the following items: losses incurred through the performance of the guarantee obligations owing to the non-performance of obligations of the principal obligor related to the guarantee obligations due to any reason falling under items (i) through (iv); or losses incurred through the inability to collect an amount expected to be acquired based on a right to obtain reimbursement acquired due to the performance of the guarantee obligations owing to the non-performance (excluding non-performance due to any reason falling under items (i) through (iv)) of obligations of the principal obligor related to the guarantee obligations (limited to cases in which the losses cannot be considered attributable to the person responsible for the guarantee obligations, and the situations continue over a period from the date of acquisition of the right to obtain reimbursement to the date on which the period specified in the insurance contract has passed):
(i) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(ii) war, revolution or insurrection occurring in a foreign country;
(iii) beyond what is stated in the preceding two items, any reason occurring outside of Japan, and which cannot be considered attributable to the person having provided international trade loans (excluding the bearing of the guarantee obligations; the same applies below in this paragraph) or its counterparty, the person having taken on the guarantee obligations, principal obligor or creditors related to the guarantee obligations;
(iv) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to the international trade loans, or the principal obligor related to the guarantee obligation, or other equivalent reasons;
(v) delay in the performance of the obligations of the counterparty to the international trade loans for a period longer than the period specified in the insurance contract (limited to delays which cannot be considered attributable to the person having provided international trade loans)
(Insurable Value)
Article 52  For international trade loan insurance, the insurable value is to be the amount of loans, etc. or guarantee obligations related to international trade loans (when loans, etc. are to be reimbursed or the guarantee obligations are to be performed in installments in multiple periods, the portion of the relevant loans, etc. or guarantee obligations to be reimbursed or performed at one time).
(Insurance Proceeds)
Article 53  The amount of indemnity to be provided by NEXI regarding international trade loan insurance is to be the amount obtained out of the insurable value by multiplying the ratio of the insured amount to insurable value by the amount remaining after deducting the amounts stated in the following items from the amount of loans, etc. that the person having provided international trade loans cannot collect by the reimbursement deadline due to a reason falling under any of the items of Article 51, paragraph (2) (in case of a reason falling under item (v) of that paragraph, by the time the period specified in the insurance contract has passed after the reimbursement deadline; the same applies below); the amount that the relevant person has paid through the performance of guarantee obligations owing to the non-performance of obligations of the principal obligor related to guarantee obligations due to any reason falling under items (i) through (iv); or the amount expected to be acquired based on a right to obtain reimbursement acquired due to the performance of guarantee obligations owing to the non-performance (excluding non-performance due to any reason falling under items (i) through (iv)) of obligations of the principal obligor related to guarantee obligations, which cannot be collected by the time the period specified in the insurance contract has passed after the date of acquisition of the right to obtain reimbursement (excluding the amount that cannot be collected due to any reason which can be considered attributable to the person having taken on the guarantee obligations):
(i) the amount of expenses no longer necessary, due the relevant circumstances;
(ii) the amount collected after the reimbursement deadline, after performing the guarantee obligations, or after the date on which the period specified in the insurance contract has passed after the date of acquisition of the right to obtain reimbursement.
Section 5 Exchange Risk Insurance
(Insurance Contracts)
Article 54  (1) NEXI may underwrite exchange rate insurance.
(2) In cases in which an exporter exports trade goods based on an export contract (limited to those which relate to the export of trade goods specified by Cabinet Order, and in which all or part of the purchase monies and lease fees for the trade goods are expressed in a foreign currency specified by Cabinet Order (referred to below as a "specified foreign currency")), or a technology provider provides technologies or services associated with technical cooperation based on a technical cooperation contract (limited to those in which all or part of the consideration for the provision of technologies or services is expressed in a specified foreign currency), exchange risk insurance means trade insurance indemnifying losses incurred through a decline of 3 percent or greater in the exchange rate stated in item (i) against the exchange rate stated in item (ii) regarding any portion of the purchase monies or lease fees for the exported trade goods or the consideration for the provision of technologies or services which is expressed in a specified foreign currency (excluding the portion for which the settlement deadline expires by the time the period specified by Cabinet Order has passed after the date on which the application for the conclusion of the insurance contract was made, and the portion for which the settlement deadline expires after the passage of the period specified by Cabinet Order after the date on which the application for the conclusion of the insurance contract was made; referred to below as "purchase monies, etc."):
(i) the exchange rate for a specified foreign currency that is expressed in Japanese currency in Japan on the date on which the settlement deadline expires (referred to below as a "specified foreign currency exchange rate"); provided, however, that when the relevant specified foreign currency exchange rate is lower than the specified foreign currency exchange rate on the date on which purchase monies, etc. were collected, this is to mean the specified foreign currency exchange rate on that date;
(ii) the specified foreign currency exchange rate on the date on which the application for the conclusion of the insurance contract was made; provided, however, that when the relevant specified foreign currency exchange rate is higher than the specified foreign currency exchange rate on the date on which the relevant export contract or technical cooperation contract was concluded, this means the specified foreign currency exchange rate on that date.
(Insurance Proceeds)
Article 55  The amount of indemnity to be provided by NEXI regarding exchange risk insurance is to be the amount remaining after converting the amount of purchase monies, etc. collected by an exporter or technology provider as expressed in the relevant specified foreign currency (referred to below as the "amount of purchase monies, etc. expressed in foreign currency") into Japanese currency based on the specified foreign currency exchange rate stated in paragraph (2), item (ii) of the preceding Article (referred to below as the "amount of purchase monies, etc. expressed in Japanese currency"), and then deducting the sum of the amount of purchase monies, etc. expressed in foreign currency converted into Japanese currency based on the specified foreign exchange rate stated in item (i) of that paragraph and the amount of purchase monies, etc. expressed in Japanese currency multiplied by 3 percent (when the relevant remaining amount exceeds the amount obtained by multiplying the amount of purchase monies, etc. expressed in Japanese currency by the rate specified by Cabinet Order, that amount).
(Payment of Exchange Gains)
Article 56  When the specified foreign currency exchange rate on the date on which purchase monies, etc. are collected has made a steep gain exceeding 3 percent against the specified foreign currency exchange rate stated in Article 54, paragraph (2), item (ii), a policyholder is to pay to NEXI the amount remaining after deducting the amount of purchase monies, etc. expressed in Japanese currency multiplied by 103 percent, from the amount obtained by converting the collected amount of purchase monies, etc. expressed in foreign currency into Japanese currency based on the specified foreign currency exchange rate on the date of collection (when the relevant remaining amount exceeds the amount obtained by multiplying the amount of purchase monies, etc. expressed in Japanese currency by the rate specified by Cabinet Order referred to in the preceding Article).
Section 6 Export Bill Insurance
(Insurance Contracts)
Article 57  (1) NEXI may conclude insurance contracts for export bill insurance, while taking, as a counterparty, a bank prescribed in Article 2, paragraph (1) of the Banking Act or other person specified by Cabinet Order (referred to below as a "bank, etc." in this Section), for every business year or semi-annual period.
(2) Export bill insurance means trade insurance establishing insurance relationships between NEXI and a bank, etc. for the indemnification of amounts of payments which could not be received upon maturity of a bill of exchange, or amounts for which payment was made by the bank, etc. upon receiving a request for recourse for a bill of exchange, through making a notification to NEXI that a bill of exchange issued for the collection of purchase monies for exported trade goods was negotiated by the bank, etc. from the issuer.
(Insurable Value)
Article 58  For export bill insurance, the insurable value is to be the amount of the bill.
(Insurance Proceeds)
Article 59  The amount of indemnity to be provided by NEXI based on export bill insurance relationships is to be the amount obtained out of the insurable value by multiplying the ratio of the insured amount to insurable value by the amount remaining after deducting the amounts stated as follows from the amounts of payments which could not be received upon maturity of a bill of exchange, or amounts for which payment was made by a bank, etc. upon receiving a request for recourse for a bill of exchange:
(i) the amount of payment received after maturity;
(ii) the amount collected through the appropriation of ancillary trade goods or otherwise through the exercise of rights related to ancillary trade goods;
(iii) the amount collected through exercise of the right of recourse.
(Non-Exercise of Right of Recourse)
Article 60  NEXI is not to exercise the right of recourse regarding amounts equivalent to insurance proceeds paid when a bank, etc. has not received payment on maturity of a bill of exchange, or when the reasons regarding the receipt of a request for recourse for a bill of exchange were not reasonably attributable to the issuer, in cases in which NEXI has made an insurance claim payment and acquired rights associated with the relevant bill of exchange pursuant to the provisions of Article 42.
(Limitations on the Establishment of Insurance Relationships)
Article 61  When the risks associated with a transaction are very high, and it is otherwise necessary for the operation of trade insurance business activities, NEXI is not required to establish insurance relationships based on an insurance contract for export bill insurance into the future.
Section 7 Export Guarantee Insurance
(Insurance Contracts)
Article 62  (1) NEXI may underwrite export guarantee insurance.
(2) Export guarantee insurance means trade insurance indemnifying losses incurred through the performance, in accordance with the terms of a guarantee, of the guarantee obligations upon receiving a request from the counterparty to an export guarantee after the conclusion of an insurance contract, by a bank prescribed in Article 2, paragraph (1) of the Banking Act or other person specified by Cabinet Order (referred to below as the "guarantor" in this Section), in cases falling under any of the following items, regarding export guarantees issued to a person undertaking tenders, an exporter, or a technology provider (referred to below as a "bidder, etc.") in relation to the export of trade goods specified by Cabinet Order, or the provision of technologies or services associated with technical cooperation specified by Cabinet Order, based on the entrustment of the relevant bidder, etc.:
(i) when a bidder, etc., who is the principal obligor, has performed an obligation that is subject to a guarantee stated in Article 2, paragraph (14), item (i) or (ii) based on a tender, export contract or technical cooperation contract (referred to below as an "obligation subject to guarantee"), in accordance with its main purport;
(ii) in cases in which a bidder, etc., who is the principal obligor, does not perform an obligation subject to guarantee in accordance with its main purport, or could not do so, when it is determined by the relevant parties that the relevant bidder, etc. should not be liable for non-performance of obligations, for any reason stated in Article 44, paragraph (2), item (i), (a) through (i) or any other reason which cannot be considered attributable to the bidder, etc.
(Insurable Value)
Article 63  The insurable value of export guarantee insurance is to be the amount of the export guarantee.
(Insurance Proceeds)
Article 64  The amount of indemnity to be provided by NEXI regarding export guarantee insurance is to be the amount obtained out of the insurable value by multiplying the ratio of the insured amount to insurable value by the amount remaining after deducting the amount collected from the counterparty to the export guarantee from the amount paid by the guarantor in accordance with the terms of the guarantee upon receiving a demand from the counterparty to the export guarantee, in cases falling under any of the items of Article 62, paragraph (2) (in cases in which the relevant export guarantee is a guarantee referred to in Article 2, paragraph (14), item (i) or item (ii), when all or part of the principal obligations are performed in lieu of the payment of penalty fees or other similar monies on behalf of the principal obligor, or a third party has been made to conduct this performance, whichever is the smaller: the expenses required for the relevant performance, or the penalty fees or other similar monies).
(Non-Exercise of Rights)
Article 65  In cases in which NEXI has made an insurance claim payment and has acquired the right to obtain reimbursement from a bidder, etc., who is the principal obligor, that was acquired by a guarantor through the performance of the guarantee obligations to an export guarantee, or has acquired the right to demand payment of monies related to a guarantee given to a person having made a guarantee regarding compensatory obligations of the relevant bidder, etc. in cases in which a guarantee stated in Article 2, paragraph (14), item (iii) has been received, pursuant to the provisions of Article 42, NEXI is not to exercise those rights.
Section 8 Advance Payment Insurance
(Insurance Contracts)
Article 66  (1) NEXI may underwrite advance payment insurance.
(2) Advance payment insurance means trade insurance indemnifying losses incurred by a prepaid purchaser through the inability to receive the return of purchase monies or lease fees paid before the shipping date of trade goods (referred to below as "advance payments") based on an advance payment contract due to a reason falling under any of the following items, in cases in which the prepaid purchaser was unable to import the trade goods based on the relevant advance payment contract:
(i) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(ii) war, revolution or insurrection occurring in a foreign country;
(iii) beyond what is stated in the preceding two items, any reason which cannot be considered attributable to the parties to the advance payment contract, and which occurs outside of Japan;
(iv) the issuing of a decision on commencement of bankruptcy proceedings regarding the counterparty to the advance payment contract, or other equivalent reasons;
(v) Delay in the performance of obligations related to the prior payments of the counterparty to the advance payment contract for a period longer than the period specified in the insurance contract (limited to delays which cannot be considered attributable to the prepaid purchaser).
(Insurable Value)
Article 67  The insurable value of prepayment import insurance is the amount of advance payments
(Insurance Proceeds)
Article 68  The amount of indemnity to be provided by NEXI for advance payment insurance is to be the amount obtained by multiplying the ratio of the insured amount to insurable value by the amount remaining after deducting out of the insurable value the amounts stated in the following items from the amount of advance payments whose return cannot be received by the prepaid purchaser by the deadline for return of advance payments, due to a reason falling under any of the items of Article 66, paragraph (2) (when due to a reason falling under item (v) of the same paragraph, by the time when the period specified in the insurance contract has passed after the deadline for return of advance payments; the same applies in item (ii)):
(i) the amount of expenses no longer necessary, due to the relevant circumstances;
(ii) the amount collected after the deadline for return of advance payments.
Section 9 Overseas Investment Insurance
(Insurance Contracts)
Article 69  (1) NEXI may underwrite overseas investment insurance.
(2) Overseas investment insurance means trade insurance indemnifying losses incurred by a person having made an overseas investment due to a reason falling under any of the following items:
(i) the dispossession by a foreign government, etc. of the principal of shares, etc. (referred to below as "principal" in this Section), (including shares, etc. in a foreign corporation (referred to below as a "related foreign corporation)") related to contribution stated in Article 2, paragraph (17), item (i) (including contribution at two or more degrees of separation from the original contributions; the same applies below in this item and item (iv)), the right to claim payment on dividends for shares, etc. (referred to below as "dividend payment claims"), or rights relating to real estate, etc.;
(ii) the impossibility of the continuation of the business activities of the counterparty to an overseas investment stated in Article 2, paragraph (17), item (i) (including the related foreign corporation; the same applies below in this item and item (v)) or other reasons specified by Cabinet Order, after the relevant counterparty to the overseas investment has incurred damage due to war, revolution, insurrection, violence, disturbances or other reasons arising outside of Japan which cannot be considered attributable to the person having made the overseas investment or the relevant counterparty, or has incurred damage through the infringement by a foreign government, etc. on rights relating to real estate, equipment, raw materials or other items, mining rights, industrial property rights, or other rights or interests which are particularly necessary for the operation of its business;
(iii) The inability to utilize rights relating to real estate, etc. for business activities after having incurred damage regarding the relevant rights relating to real estate, etc., due to war, revolution, insurrection, violence, disturbances, or other reasons arising outside of Japan which cannot be considered attributable to the person having made the overseas investment;
(iv) the inability to remit amounts paid due to the loss of principal (excluding cases where this is due to a reason referred to in item (i), (ii) or the following item), dividends on shares, etc., or amounts paid due to the loss of rights relating to real estate, etc. (excluding cases where this is due to a reason stated in item (i) or the preceding item; referred to below as "payment, etc." in this item), to Japan (in cases where a capital contributing foreign corporation, etc. has made a payment, etc. related to an overseas investment (excluding those concerning a related foreign corporation), the region of the foreign country where its head office or principal office is located, and in cases where the payment, etc. is related to the related foreign corporation, the region specified by the insurance contract.) during a period longer than the period specified by Cabinet Order, due to a reason falling under any of the following:
(a) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(b) interruptions to funds transfer transactions due to war, revolution or insurrection occurring in a foreign country;
(c) management of the relevant payment, etc. by the foreign government, etc.;
(d) the revocation of permission to remit the relevant payment etc., or the cancellation of permission in cases in which a foreign government, etc. has promised in advance to grant that permission;
(e) the confiscation of payment etc. by a foreign government, etc., due to a reason stated in (a) through (d);
(v) The issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to the overseas investment, regarding the overseas investments stated in Article 2, paragraph (17), item (i) (limited to cases in which this cannot be considered attributable to the person having made the overseas investment, except for a decision stated in item (ii)) or other equivalent reasons;
(3) The insurance period for overseas investment insurance must not exceed the period specified by Cabinet Order by 10 years or more
(Insurance Proceeds)
Article 70  (1) The amount of indemnity to be provided by NEXI for overseas investment insurance related to losses incurred due to any reason falling under paragraph (2), item (i) through item (iv) of the preceding Article (regarding item (iv), limited to the portion related to the relevant foreign corporation) is to be the amount obtained by multiplying the specific rate by the amount remaining after deducting the amounts stated in the following items from the amount of decrease in the appraised value of the principal, dividend payment claims (limited to those related to the counterparty to the overseas investment stated in Article 2, paragraph (17), item (i)), or rights relating to real estate, etc. that is related to the relevant reason and calculated by the method specified in the insurance contract:
(i) the amount acquired or to be acquired due to the arising of the relevant reason;
(ii) the amount collected after necessary measures have been taken for the reduction of losses.
(2) For overseas investment insurance related to losses incurred due to any reason referred to in paragraph (2), item (iv) of the preceding Article (excluding the portion related to the relevant foreign corporation) in the case of losses related to amounts paid due to the loss of principal (limited to principal related to the counterparty to an overseas investment stated in Article 2, paragraph (17), item (i); the same applies in the following paragraph) or rights relating to real estate, etc. (referred to below as "principal, etc." in this paragraph and paragraph (4)), the amount of indemnity to be provided by NEXI is to be the amount obtained by multiplying the specific rate by the amount remaining after deducting the amounts stated in the items below from whichever is the smaller of the amount which could not be remitted to Japan (for overseas investment by a capital contributing foreign corporation, etc., the area of the foreign country where its head office or principal office is located; the same applies below in this paragraph and paragraph (5)) during a period longer than the period specified by Cabinet Order stated in paragraph (2), item (iv) of the preceding Article due to any reason falling under (a) to (e) of the same item (excluding amounts which were to be remitted to Japan before the arising of that reason; this is to be referred to below as the "non-remitted amount"); or the amount of consideration for the acquisition of the principal, etc. (in cases in which the relevant principal, etc. is appraised based on the insurance contract after the acquisition of the principal, the most recent appraised value); and in the case of losses related to dividends on shares, etc. of the counterparty related to an overseas investment stated in Article 2, paragraph (17), item (i), from the non-remitted amount.
(i) the amount of expenses no longer necessary, due to the relevant circumstances
(ii) the amount expended including the relevant non-remitted amount;
(iii) the amount collected after necessary measures have been taken for the reduction of losses.
(3) For losses related to the principal, the amount of indemnity to be provided by NEXI for overseas investment insurance related to losses incurred due to a reason falling under paragraph (2), item (v) of the preceding Article is to be the amount obtained by multiplying the specific rate by the amount remaining after deducting the amounts stated in the following items from the amount of consideration for the acquisition of the principal related to the reason (in cases in which the relevant principal is appraised based on the insurance contract after the acquisition of the principal, the most recent appraised value); and for losses related to dividend payment claims (limited to those related to the counterparty to overseas investments stated in Article 2, paragraph (17), item (i); the same applies below in this paragraph), from the amount of dividends expected to be acquired based on the dividend payment claim related to the relevant reason:
(i) the amount acquired due to the relevant reason, or the amount that is expected to be acquired;
(ii) the amount collected after necessary measures have been taken for the reduction of losses.
(4) When the amount of indemnity to be provided by NEXI calculated pursuant to the provisions of the preceding three paragraphs regarding the principal, etc. or its accumulated amount exceeds the amount remaining after deducting the amounts stated in the following items from the amount of consideration for the acquisition of the principal, etc. (in cases in which the relevant principal, etc. is appraised based on the insurance contract after the acquisition of the principle, the most recent appraised value), the amount of indemnity to be provided by NEXI is to be that remaining amount, notwithstanding those provisions:
(i) whichever is the larger: the amount acquired or to be acquired due to the loss of the relevant principal, etc. before the occurrence of the relevant reason (excluding the loss due to a reason falling under paragraph (2), items (i) through (iii), or item (v) of the preceding Article) (in cases in which a non-remitted amount is included, the amount remaining after deducting the relevant non-remitted amount from those amounts); or the amount of consideration for the acquisition of the lost principal, etc. (in cases in which the relevant principal, etc. is appraised based on the insurance contract after the acquisition of the principal, the most recent appraised value);
(ii) the amount acquired or to be acquired due to any reason falling under paragraph (2), item (i) to item (iii), or item (v) of the preceding Article, before the occurrence of the relevant reason;
(iii) the amounts prescribed in the items of paragraph (1), the items of paragraph (2), or the items of the preceding paragraph.
(5) Notwithstanding the provisions of paragraph (1) and the preceding two paragraphs, in cases in which there is an amount that could not be remitted to Japan, out of the amount acquired or to be acquired due to any reason falling under paragraph (2), item (i) through item (iii), or item (v) of the preceding Article, due to any reason falling under the following items (excluding amounts which were to be remitted to Japan before the occurrence of the relevant reason; this is to be referred to below as the "non-remitted acquired amount") in addition to the amount of indemnity to be provided as calculated pursuant to the provisions of paragraph (1) and the preceding two paragraphs, NEXI must add the amounts remaining after deducting the non-remitted acquired amount from the amounts prescribed in paragraph (1), item (i), paragraph (3), item (i), or item (ii) of the preceding paragraph that are deemed to be the amounts prescribed in paragraph (1), item (i), paragraph (3), item (i), or item (ii) of the preceding paragraph, respectively, and provide indemnity for the difference between the total of those amounts and the amount of indemnity that NEXI is to provide as calculated by applying the provisions of paragraph (1) and the preceding two paragraphs:
(i) confiscation by a foreign government, etc.;
(ii) the management by a foreign government, etc. (limited to control which continues over a period longer than the period specified by Cabinet Order);
(iii) reasons equivalent to those stated in the preceding two items that are specified by Cabinet Order
Section 10 Overseas Untied Loan Insurance
(Insurance Contracts)
Article 71  (1) NEXI may underwrite overseas untied loan insurance.
(2) Overseas untied loan insurance means trade insurance indemnifying losses incurred by a person having provided an overseas untied loan through the inability to collect the overseas untied loan receivables, etc. due to a reason falling under any of the following items; losses incurred through the performance of the guarantee obligations owing to the non-performance of obligations of the principal obligor related to the guarantee obligations due to any reason falling under items (i) through (iv); or losses incurred through the inability to collect an amount expected to be acquired based on a right to obtain reimbursement acquired, due to the performance of guarantee obligations owing to the non-performance (excluding non-performance due to any reason falling under items (i) through (iv)) of obligations of the principal obligor related to the guarantee obligations (limited to cases in which this cannot be considered attributable to the person having agreed to the guarantee obligations, and that situation continues over a period from the date of acquisition of the right to obtain reimbursement to the date on which the period specified in the insurance contract has passed):
(i) restrictions or prohibitions on funds transfer transactions imposed in a foreign country;
(ii) war, revolution or insurrection occurring in a foreign country;
(iii) beyond what is stated in the preceding two items, any reason that exist outside of Japan, and which cannot be considered attributable to the person having provided the overseas untied loan (excluding the burden of the guarantee obligations; the same applies below in this paragraph) or its counterparties, or the person bearing the guarantee obligations, or the principal obligor or creditors related to the guarantee obligations;
(iv) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to the overseas untied loan or the principal obligor related to the guarantee obligations, or other equivalent reasons;
(v) delay in the performance of an obligation by the counterparty to the overseas untied loan for a period longer than the period specified in the insurance contract (limited to cases in which this cannot be considered attributable to the person having provided the overseas untied loan).
(Insurable Value)
Article 72  The insurable value of overseas untied loan insurance is to be the amount of loans, etc. or guarantee obligations related to the overseas untied loan (when loans, etc. are to be reimbursed or guarantee obligations are to be performed in installments in multiple time periods, the portion of the relevant loans, etc. or performance of the guarantee obligations to be reimbursed or performed at one time).
(Insurance Proceeds)
Article 73  The amount of indemnity to be provided by NEXI for overseas untied loan insurance is to be the amount obtained out of the insurable value by multiplying the ratio of the insured amount to insurable value by the amount remaining after deducting the amounts stated in the following items from the amount of loans, etc. which cannot be collected by the person having provided the overseas untied loan by the reimbursement deadline due to a reason falling under any of the items of Article 71, paragraph (2) (when due to a reason falling under item (v) of the same paragraph, by the time when the period specified in the insurance contract has passed after the reimbursement deadline; the same applies below); the amount paid as performance of the guarantee obligations due to the non-performance of obligations of the principal obligor related to guarantee obligations due to any reason falling under items (i) through (iv) of that paragraph; or the amount which cannot be collected by the date on which the period specified in the insurance contract has passed from the date of acquisition of a right to reimbursement regarding amounts expected to be acquired based on the right to reimbursement acquired due to the performance of the guarantee obligations, owing to the non-performance (excluding non-performance due to any reason falling under items (i) through (iv) of that paragraph) of obligations of the principal obligor related to guarantee obligations (excluding amounts which cannot be collected due to any reason which cannot be considered attributable to the person bearing the guarantee obligations):
(i) the amount of expenses no longer necessary, due to the relevant circumstances;
(ii) the amount collected after the reimbursement date, or after the performance of the guarantee obligations or after the date on which the period specified in the insurance contract has passed from the date of acquisition of the right to reimbursement.
Section 11 Swap Insurance
(Insurance Contract)
Article 74  (1) NEXI may underwrite swap insurance.
(2) Swap transaction insurance means trade insurance indemnifying losses incurred by a swap trader (meaning a person who has conducted a swap transaction (meaning a transaction stated in Article 2, paragraph (22), item (v) of the Financial Instruments and Exchange Act (Act No. 25 of 1948); the same applies in this paragraph) in relation to trade payment loan receivables, etc. or overseas untied loan receivables, etc. with the counterparty to a trade payment loan or overseas untied loan; the same applies below) through inability to receive payment of clearing funds or other claims specified by Cabinet Order as a result of the cancellation of the swap transaction (referred to as "cancellation clearing funds, etc." in the following Article) due to a reason falling under any of the following items:
(i) restrictions or prohibitions on funds transfer transactions conducted in a foreign country;
(ii) war, revolution or insurrection occurring in a foreign country;
(iii) beyond what is stated in the preceding two items, any reasons which cannot be considered attributable to the swap trader or its counterparty, and which arise outside of Japan;
(iv) the issuing of a decision on the commencement of bankruptcy proceedings regarding the counterparty to the swap transactions or any other equivalent events;
(v) delay in the performance of obligations of the counterparty to the swap transactions for a period longer than the period specified in the insurance contract (limited to delays which cannot be considered attributable to the swap trader).
(Insurance Proceeds)
Article 75  The amount of indemnity to be provided by NEXI regarding swap insurance is to be the amount obtained by multiplying the specific rate by the amount remaining after deducting the amounts stated in the following items from the amount of cancellation clearing funds, etc. for which a swap trader is unable to receive payment by the payment date due to a reason falling under any of the items of paragraph (2) of the preceding Article (when due to a reason falling under item (v) of that paragraph, by the time the period specified in the insurance contract has passed after the payment date; the same applies in item (ii)):
(i) the amount of expenses no longer necessary, due to the relevant circumstances;
(ii) the amount of payment received after the payment date.
Section 12 Letter of Credit Confirmation Insurance
(Insurance Contract)
Article 76  (1) NEXI may underwrite letter of credit confirmation insurance.
(2) Letter of credit confirmation insurance means trade insurance indemnifying losses incurred due to the inability to collect an amount to be redeemed from a letter of credit issuer based on a letter of credit confirmation contract in cases in which a letter of credit verifier has made payment based on the relevant letter of credit confirmation contract.
(Insured Value)
Article 77  For letter of credit confirmation insurance, the insurable value is the amount of money for which the letter of credit verifier is to receive reimbursement from the letter of credit issuer in the case prescribed in paragraph (2) of the preceding Article.
(Insurance Proceeds)
Article 78  The amount of indemnity to be provided by NEXI for letter of credit confirmation insurance is to be the amount obtained by multiplying the portion of the insurable value that cannot be collected from the letter of credit issuer by the ratio of the insured amount to the insurable value.
Chapter IV Penal Provisions
Article 79  A person who has disclosed or appropriated confidential information in violation of the provisions of Article 10 is punished by imprisonment for not more than one year, or a fine of not more than 500,000 yen.
Article 80  If NEXI or an entrusted financial institution fails to make a report under the provisions of Article 32, paragraph (1), or makes a false report; or refuses, impedes or avoids the inspection under the provisions of that paragraph, the directors, executive officers, accounting advisors (if the accounting advisor is a corporation, a member who is to carry out the duties of the accounting advisor), or company auditors of NEXI, or officers or employees of the relevant entrusted financial institution who have committed those violations are punished by a fine of not more than 300,000 yen.
Article 81  In cases falling under any of the following items, the directors, executive officers, accounting advisors or a member who is to carry out the duties of the accounting advisors, or company auditors of NEXI who have committed those violations are punished by a civil fine of not more than 1,000,000 yen:
(i) in cases in which it is necessary to obtain the authorization or approval of the Minister of Economy, Trade and Industry pursuant to the provisions of this Act, if the relevant authorization or approval has not been obtained;
(ii) if business operations other than those specified in Article 12, paragraph (1), paragraph (2), and paragraph (4) have been carried out;
(iii) if a notification has not been made to the Minister of Economy, Trade and Industry in violation of the provisions of Article 16, paragraph (2);
(iv) if financial statements have not been submitted or financial statements containing false statements or records have been submitted in violation of the provisions of Article 20;
(v) if an order under the provisions of Article 21, paragraph (4), Article 31, paragraph (2), or Article 40, paragraph (2) has been violated;
(vi) if a policy reserve has not been set aside in violation of the provisions of Article 22;
(vii) if a reserve for outstanding claims has not been set aside in violation of the provisions of Article 23;
(viii) if surplus funds have been invested in violation of the provisions of Article 29;
(ix) if international trade insurance has been underwritten in violation of the provisions of Article 40, paragraph (3).
Article 82  A person who has violated the provisions of Article 6 is punished by a civil fine of not more than 100,000 yen.
Supplementary Provisions  [Extract]
(1) This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 176 of June 1, 1951]  [Extract]
(1) This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 281 of November 30, 1951]
This Act comes into effect on December 1, 1951.
Supplementary Provisions  [Act No. 33 of March 31, 1952]  [Extract]
(1) This Act comes into effect on April 1, 1952.
(2) Prior laws and regulations continue to govern Class-A insurance underwritten by insurance companies before the enforcement of this Act.
Supplementary Provisions  [Act No. 276 of July 31, 1952]  [Extract]
(1) This Act comes into effect on August 1, 1952.
Supplementary Provisions  [Act No. 79 of July 24, 1953]  [Extract]
(1) This Act comes into effect on August 1, 1953.
(2) The Export Indemnification Act (Act No. 6 of 1930) is hereby abolished.
(7) Prior laws and regulations continue to govern Class-A insurance underwritten by insurance companies before the enforcement of this Act; and reinsurance of Class-A insurance and insurance relationships for Class-C insurance established before the enforcement of this Act.
Supplementary Provisions  [Act No. 13 of March 29, 1954]
This Act comes into effect on April 1, 1954.
Supplementary Provisions  [Act No. 67 of April 10, 1954]  [Extract]
(1) This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 73 of April 16, 1956]
This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 96 of May 2, 1957]  [Extract]
(1) This Act comes into effect on the date of promulgation.
(2) Prior laws and regulations continue to govern overseas investment insurance underwritten by the government before the enforcement of this Act; provided, however, that this does not apply regarding the application of the provisions of Article 14-2 and Article 14-3 after amendment.
Supplementary Provisions  [Act No. 59 of April 15, 1958]  [Extract]
(1) This Act comes into effect on the day specified by Cabinet Order within a period not exceeding six months from the date of promulgation.
(2) After this Act comes into effect, an insurance company may not underwrite general export insurance in which a reinsurance relation is established based on a contract, which is concluded by the government taking the relevant insurance company as the counterparty, for the reinsurance of ordinary export insurance that the relevant insurance company has underwritten in FY1958.
(3) Prior laws and regulations continue to govern general export insurance underwritten by an insurance company before this Act comes into effect (referred to below as "old insurance") and insurance relationships for reinsurance of old insurance established before this Act comes into effect.
(4) Pursuant to the provisions of Cabinet Order, the government may conclude a contract with an insurance company that provides for the succession of the relevant insurance company to rights and duties based on an insurance contract for old insurance.
Supplementary Provisions  [Act No. 103 of May 2, 1962]
This Act comes into effect on the day after the final day in the 30-day period that commences on the promulgation date.
Supplementary Provisions  [Act No. 161 of September 15, 1962]  [Extract]
(1) This Act comes into effect on October 1, 1962.
(2) Except in cases in which there are special provisions in these supplementary provisions, the provisions after amendment by this Act also apply to dispositions made by administrative agencies before the enforcement of this Act, failure to take action of administrative agencies related to applications made before the enforcement of this Act, and other matters of concern before the enforcement of this Act; provided, however, that this does not preclude the effect of the provisions before amendment by this Act.
(3) Prior laws and regulations continue to govern petitions, applications for examination, objections or other appeals filed before this Act comes into effect (referred to below as "petitions, etc."), after the enforcement of this Act. This also applies to administrative determinations, decisions, or other dispositions concerning petitions, etc. (referred to below as "administrative determinations, etc.") made before this Act comes into effect, or petitions, etc. filed in objection to administrative determinations, etc. made after this Act comes into effect concerning petitions, etc. filed before this Act comes into effect.
(4) After this Act comes into effect, among the petitions etc. prescribed in the preceding paragraph, those concerning dispositions that may be appealed pursuant to the provisions of the Administrative Complaint Review Act, regarding the application of laws other than the Act, are deemed to be appeals made pursuant to the provisions of the Administrative Complaint Review Act .
(5) Administrative determinations, etc. concerning requests for administrative review, objections or other appeals issued before this Act comes into effect pursuant to the provisions of paragraph (3) may not be subjected to an appeal under the Administrative Complaint Review Act.
(6) Regarding dispositions of administrative agencies before the enforcement of this Act concerning which petitions, etc. may be made pursuant to the provisions before amendment by this Act and for which the period for making petitions, etc. has not been specified, the period during which an appeal may be made pursuant to the provisions of the Administrative Complaint Review Act commences from the date of the enforcement of this Act.
(8) Prior laws and regulations continue to govern the applicability of penal provisions to conduct that a person has engaged in before this Act comes into effect.
(9) Beyond what is provided for in the preceding eight paragraphs, necessary transitional measures concerning the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 90 of June 1, 1964]
This Act comes into effect on the day after the final day in the 30-day period that commences on the promulgation date.
Supplementary Provisions  [Act No. 17 of March 31, 1965]  [Extract]
(1) This Act comes into effect on April 1, 1965.
Supplementary Provisions  [Act No. 57 of May 15, 1970]
(1) This Act comes into effect on the date of promulgation.
(2) Prior laws and regulations continue to govern overseas investment principal insurance and overseas investment profit insurance underwritten by the government before this Act comes into effect, except if the insurance contract for the overseas investment principal insurance or overseas investment profit insurance has been changed into an insurance contract for overseas investment insurance by a renewal.
Supplementary Provisions  [Act No. 2 of January 20, 1972]
This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 66 of July 25, 1973]  [Extract]
(Effective Date)
(1) This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 61 of May 30, 1974]  [Extract]
(Effective Date)
(1) This Act comes into effect on the day specified by Cabinet Order within a period not exceeding six months from the date of promulgation.
(Abolishment of the Equipment Export Exchange Losses Act)
(3) The Equipment Export Exchange Losses Act (Act No. 61 of 1952) is repealed.
Supplementary Provisions  [Act No. 21 of April 22, 1977]  [Extract]
(Effective Date)
(1) This Act comes into effect on the day specified by Cabinet Order within a period not exceeding six months from the date of promulgation.
Supplementary Provisions  [Act No. 55 of May 23, 1978]  [Extract]
(Effective Date)
(1) This Act comes into effect on the date of promulgation.
Supplementary Provisions  [Act No. 35 of May 6, 1981]  [Extract]
(Effective Date)
(1) This Act comes into effect on October 1, 1981.
(Transitional Measures)
(2) Prior laws and regulations continue to govern export insurance underwritten by the government before the enforcement of this Act.
Supplementary Provisions  [Act No. 78 of December 2, 1983]
(1) This Act (excluding Article 1) comes into effect on July 1, 1984.
(2) Necessary transitional measures regarding an institution, etc. that has been established pursuant to the provisions of a law on the day before this Act comes into effect, and which after this Act comes into effect will be deemed to be established pursuant to the provisions of Cabinet Order based on the provisions of the National Government Organization Act or related Acts amended by this Act (referred to below as "related Cabinet Order"), or other necessary transitional measures regarding the establishment, amendment or abolition of related Cabinet Order accompanying the enforcement of this Act, may be specified by Cabinet Order.
Supplementary Provisions  [Act No. 32 of May 18, 1984]
(Effective Date)
(1) This Act comes into effect on the date of promulgation; provided, however, that the provisions in Article 1 to amend Article 5-3, paragraph (2), Article 5-8, and Article 5-9 of the Export Insurance Act come into effect on the day specified by Cabinet Order within a period not exceeding six months from the date of promulgation.
(Transitional Measures)
(2) Prior laws and regulations continue to govern consignment sales export insurance and overseas advertising insurance underwritten by the government before the enforcement of this Act.
Supplementary Provisions  [Act No. 3 of March 30, 1987]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on October 1, 1987; provided, however, the provisions stated in the following items come into effect as of the date specified in the relevant items:
(i) the provisions to amend the title, the portion of the provisions to amend the table of contents that relate to Chapter VII, the provisions to amend Article 1, the provisions to amend the title of Article 1-3, the portion of the provisions to amend that Article that replaces "export insurance" with "international trade insurance," the provisions to amend Article 1-4, the provisions to amend Article 1-5, the portion of the provisions to amend Articles 1-7 and 3 that replaces "export insurance" with "international trade insurance," the provisions to amend Article 5-2, paragraph (2), the provisions to amend Article 5-6-2, paragraph (2), the provisions to amend Article 5-7, paragraph (2), the provisions to amend Article 10-2, paragraph (2), the portion of the provisions to amend Article 14-2, paragraph (2) that replaces "export insurance" with "international trade insurance," the provisions to amend the title of Chapter VII, the provisions to amend Article 16, paragraph (1), the portion of the provisions to amend paragraph (2) of that Article that replaces "export insurance" with "international trade insurance," the provisions of paragraph (1) of the following Article, the provisions of Article 4 of the Supplementary Provisions (limited to the provisions to amend the title of the Export Insurance Special Accounting Act (Act No. 68 of 1950), the provisions to amend Article 1 of the relevant Act, and the provisions to amend paragraph (3), item (i) of the Supplementary Provisions to the relevant Act), the provisions of Article 5 of the Supplementary Provisions, the provisions of Article 6 of the Supplementary Provisions, and the provisions of Article 7 of the Supplementary Provisions (limited to the portions of the provisions to amend Article 4, item (xvi) and Article 5, paragraph (1), item (xi) of the Act for Establishment of the Ministry of International Trade and Industry (Act No. 275 of 1952) that replace "export insurance" with "international trade insurance," and the provisions to amend Article 11, item (iv) of the relevant Act.): April 1, 1987;
(ii) the portion of the provisions to amend the table of contents that relates to Chapter IV, the portion of the provisions to amend Article 1-3 that deletes ", export finance insurance," the provisions to amend Article 1-6, the portion of the provisions to amend Article 1-7 that deletes item (iv) and changes item (iii) to item (iv) and item (ii)-2 to item (iii), the provisions to amend Chapter IV, and the portions of the provisions of paragraph (2) of the following Article and Article 4 of the Supplementary Provisions that delete ", Article 10" from the provisions to amend Article 4, paragraph (1) of the Export Insurance Special Accounting Act: April 1, 1988.
(Transitional Measures)
Article 2  (1) Regarding the application of the provisions of Article 6, paragraph (2) of the Trade and Investment Insurance Act after amendment by this Act during the period from the date provided for in item (i) of the proviso to the preceding Article until March 31, 1988, the term "export insurance" in that paragraph is deemed to be replaced with "international trade insurance."
(2) Prior laws and regulations continue to govern insurance relations for export finance insurance established before the date provided for in item (ii) of the proviso to the preceding Article.
Article 3 Prior laws and regulations continue to govern overseas investment insurance underwritten by the government before the enforcement of this Act.
Supplementary Provisions  [Act No. 89 of September 11, 1987]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the day specified by Cabinet Order within a period not exceeding two months from the date of promulgation.
Supplementary Provisions  [Act No. 36 of May 6, 1993]  [Extract]
(Effective Date)
(1) This Act comes into effect on the day specified by Cabinet Order within a period not exceeding six months from the date of promulgation.
(Transitional Measures)
(2) Prior laws and regulations continue to govern overseas investment insurance underwritten by the government before the enforcement of this Act.
Supplementary Provisions  [Act No. 89 of November 12, 1993]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the date on which the Administrative Procedure Act (Act No. 88 of 1993) comes into effect.
(Transitional Measures Regarding Appealed Adverse Dispositions)
Article 2  In cases in which an appeal has been made to undertake procedures for a hearing or granting of opportunity for explanation, or other procedures equivalent to those for statement of opinions, as prescribed in Article 13 of the Administrative Procedure Act, towards a council or other collegiate body, based on laws and regulations, before the enforcement of this Act, or other similar demand has been made, notwithstanding the provisions of related Acts after amendment by this Act, prior laws and regulations continue to govern procedures for adverse dispositions related to the appeal or other similar demand.
(Transitional Measures Concerning Penal Provisions)
Article 13  Prior laws and regulations continue to govern the applicability of penal provisions to conduct that a person has engaged in before this Act comes into effect.
(Transitional Measures Regarding the Arrangement of Provisions Related to Hearings)
Article 14  Hearings, consultations and hearing panels (excluding those related to adverse dispositions) that took place pursuant to the provisions of an Act before the enforcement of this Act, or procedures associated with the same are deemed to have taken place pursuant to corresponding provisions of related Acts after amendment by this Act.
(Delegation to Cabinet Order)
Article 15  Beyond what is provided for in Article 2 through the preceding Article of the Supplementary Provisions, necessary transitional measures concerning the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 59 of May 23, 1997]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on April 1, 1998.
Supplementary Provisions  [Act No. 102 of July 16, 1999]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the date on which the Act Partially Amending the Cabinet Act (Act No. 88 of 1999) comes into effect; provided, however, that the provisions stated in the following items come into effect as of the date specified in the relevant items:
(i) omitted;
(ii) the provisions of Article 10, paragraph (1) and paragraph (5), Article 14, paragraph (3), Article 23, Article 28 and Article 30 of the Supplementary Provisions: the date of promulgation.
(Transitional Measures Concerning Term of Office of Members)
Article 28  (1) The term of office of a person who is the chairperson, a member, or any other official of any of the following former councils or other organs on the day before the date on which this Act comes into effect (excluding a person whose term of office is not fixed) expires on that date, notwithstanding the provisions of the respective Acts that prescribe the terms of office of the chairperson, member, or any other official:
(i) through (xxxix) omitted;
(xl) Trade Insurance Council.
(Separately Provided Transitional Measures)
Article 30  Beyond what is provided for in Article 2 through the preceding Article, necessary transitional measures accompanying the enforcement of this Act are specified separately by law.
Supplementary Provisions  [Act No. 160 of December 22, 1999]  [Extract]
Article 1  This Act (excluding Article 2 and Article 3) comes into effect on January 6, 2001; provided, however, that the provisions stated in the following items come into effect on the dates provided in those items:
(i) the provisions of Article 995 (limited to the portion related to the provisions amending the Supplementary Provisions of the Act Partially Amending the Act on the Regulation of Nuclear Source Material, Nuclear Fuels Material and Reactors), Article 1305, Article 1306, Article 1324, paragraph (2), Article 1326, paragraph (2) and Article 1344: the date of promulgation.
Supplementary Provisions  [Act No. 202 of December 22, 1999]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the day specified by Cabinet Order within a period not exceeding six months from January 6, 2001; provided, however, that the provisions stated in the following items come into effect on the day stated in the relevant items:
(i) the provisions to add four Articles, three Sections, chapter titles and section titles after Article 3 (limited to the portion related to Article 21), and the provisions of Article 7 and Article 8 of the Supplementary Provisions: January 6, 2001;
(ii) the provisions of Article 11 and Article 15 of the Supplementary Provisions: the date of promulgation.
(Succession of Officials)
Article 2  Persons who are employees of departments or organs of the Ministry of Economy, Trade and Industry as specified by Cabinet Order at the time of the establishment of the Incorporated Administrative Agency Nippon Export and Investment Insurance (referred to below as "NEXI"), except for those persons designated by the Minister of Economy, Trade and Industry, and unless their employment is announced separately, become employees of NEXI on the date of its establishment.
Article 3  Regarding the application of the provisions of Article 82, paragraph (2) of the National Public Service Act (Act No. 120 of 1947) to persons who have become employees of NEXI pursuant to the provisions of the preceding Article, employees of NEXI are deemed to have retired so as to become national public servants in special service, etc. prescribed in that paragraph, and the loss of their positions as national public servants pursuant to the provisions of the preceding Article are considered to be resignations, in order to become national public servants in special service, etc. prescribed in the same paragraph on request of an appointer.
Article 4  (1) If an employee of the Ministry of Economy, Trade and Industry becomes an employee of NEXI pursuant to the provisions of Article 2 of the Supplementary Provisions, retirement allowance based on the National Public Service Retirement Allowance Act (Act No. 182 of 1953) is not paid to that person.
(2) When NEXI intends to pay retirement allowance upon the retirement of one of its employees to whom the provisions of the preceding paragraph have been applied, the period of service of that person as an employee prescribed by Article 2, paragraph (1) of the Act on National Public Officers' Retirement Allowance (including persons deemed to be employees pursuant to the provisions of paragraph (2) of that Article) is deemed to be a period of service as an employee of NEXI, and handled as such.
(3) Regarding calculations of length of service to be used as the basis for calculating retirement allowance paid based on the Act on National Public Officers' Retirement Allowance to persons working as employees of the Ministry of Economy, Trade and Industry on the day before the date of establishment of NEXI, if the relevant persons have continued to work as employees of NEXI pursuant to the provisions of Article 2 of the Supplementary Provisions, and have become employees as prescribed in Article 2, paragraph (1) of the relevant Act after continuing to work as employees of NEXI, the period of service of the relevant persons as employees of NEXI is deemed to be their continued period of service prescribed in that paragraph; provided, however, that this does not apply when the relevant persons have received retirement allowance (including payments equivalent to it) through retirement from NEXI.
(4) NEXI is to pay as retirement allowance, an amount equivalent to the amount of retirement allowance calculated by the same rules as the provisions of Article 10 of the Act on National Public Officers' Retirement Allowance, to persons who were working as employees of the Ministry of Economy, Trade and Industry on the day before establishment of NEXI and have continued to work as employees of NEXI pursuant to the provisions of Article 2 of the Supplementary Provisions, and have retired from NEXI within a period starting from the date of establishment of NEXI and extending to the acquisition of eligibility for unemployment benefits pursuant to the provisions of the Employment Insurance Act (Act No. 116 of 1976), and who would have been able to receive payment of retirement allowance pursuant to the provisions of that Article if they had continued to be employees of the Ministry of Economy, Trade and Industry until the day of retirement.
Article 5  When a person, who has become an employee of NEXI pursuant to the provisions of Article 2 of the Supplementary Provisions and has received certification pursuant to the provisions of Article 7, paragraph (1) of the Child Allowance Act (Act No. 73 of 1971) (including as applied mutatis mutandis pursuant to Article 6, paragraph (2) ,Article 7, paragraph (4), or Article 8, paragraph (4) of the Supplementary Provisions to the relevant Act; the same applies below in this Article) from the Minister of Economy, Trade and Industry or a person delegated by the Minister on the day before the date of establishment of NEXI, is eligible for child allowance or for payments referred to in Article 6, paragraph (1), Article 7, paragraph (1) or Article 8, paragraph (1)of the Supplementary Provisions to the relevant Act (referred to below as "special payments etc.") on the day of establishment of NEXI, then regarding payments of child allowance or special payments to that person, recognition by the municipal mayor (including mayors of special wards) under Article 7, paragraph (1) of the relevant Act is deemed to have been given on the date of establishment of NEXI. In this case, payments of child allowance or special payments etc. for which recognition is deemed to have been given, begin the month after the month in which the day before the date of establishment of NEXI falls, notwithstanding the provisions of Article 8, paragraph (2) of the relevant Act (including as applied mutatis mutandis pursuant to Article 6, paragraph (2) Article 7, paragraph (4), or Article 8, paragraph (4) of the Supplementary Provisions to the relevant Act)
(Transitional Measures Regarding Employee Organizations of Persons Becoming Employees of NEXI)
Article 6  (1) Employee organizations specified in Article 108-2, paragraph (1) of the National Public Service Act existing at the time of establishment of NEXI, the majority of whose membership is to be taken into NEXI pursuant to the provisions of Article 2 of the Supplementary Provisions, become labor unions to which the Labor Union Act (Act No. 174 of 1949) applies, upon the establishment of NEXI. In this case, when that employee organization is a corporation, it becomes an incorporated labor union.
(2) If an organization which has become an incorporated labor union pursuant to the provisions of the preceding paragraph fails to receive certification from the Labor Relations Commission that it complies with the provisions of Article 2 and Article 5, paragraph (2) of the Labor Union Act and to register itself at the location of its principal office by the final day in the 60-day period from the date of establishment of NEXI, it is dissolved upon the elapse of the relevant date.
(3) Regarding an organization which has become a labor union pursuant to the provisions of paragraph (1), the provisions of the proviso through Article 2 of the Labor Union Act (limited to the portion related to item (i)) do not apply from the date of establishment of NEXI until the final day in the 60-day period.
(Succession to Rights and Obligations)
Article 7  (1) Upon the establishment of NEXI, regarding insurance business activities pursuant to the provisions of the Trade and Investment Insurance Act before amendment (referred to below as the "former act"), NEXI succeeds to the rights and obligations held by the national government at the time of its establishment, except for those stated as follows:
(i) rights related to cash and deposits under international trade insurance special accounting;
(ii) claims against foreign governments, foreign local governments or equivalent bodies, foreign corporations, or foreign persons, acquired regarding insurance proceeds payments for international trade insurance under the provisions of the former act;
(iii) liabilities from the Trust Fund Bureau for international trade insurance special accounting;
(iv) other rights and obligations specified by Cabinet Order.
(2) When NEXI has succeeded to rights and obligations held by the national government pursuant to the provisions of the preceding paragraph, an amount corresponding to the total value of properties related to the rights succeeded to which are specified by Cabinet Order are deemed to have been invested in NEXI by the government upon succession.
(3) The value of properties referred to in the preceding paragraph, which have been deemed to have been invested by the government pursuant to the provisions of the same paragraph, are appraised by the evaluators based on their market value on the date of the establishment of NEXI.
(4) Evaluators referred to in the preceding paragraph and other necessary matters regarding appraisal are specified by Cabinet Order.
(Free Use of National Government Assets)
Article 8  Pursuant to the provisions of Cabinet Order, for usage by NEXI, without charge, the national government may have NEXI use national government assets specified by Cabinet Order, which at the time of the establishment of NEXI are used by departments or organs of the Ministry of Economy, Trade and Industry specified by Cabinet Order.
(Transitional Measures Regarding International Trade Insurance, Underwritten by the Government)
Article 9  (1) Prior laws and regulations continue to govern international trade insurance other than export bill insurance underwritten by the government before this Act comes into effect. In this case, the term "government" in the provisions of the former act that are to continue to be governed by prior laws and regulations is deemed to be replaced with "NEXI."
(2) Prior laws and regulations continue to govern insurance relations for export bill insurance established before this Act comes into effect. In this case, the term "government" in the provisions of the former act that are to continue to be governed by prior laws and regulations is deemed to be replaced with "NEXI."
(Transitional Measures Regarding Reinsurance)
Article 10  (1) When NEXI has succeeded to insurance liabilities or reinsurance liabilities defrayed by the government before this Act comes into effect, pursuant to the provisions of Article 7, paragraph (1) of the Supplementary Provisions, regarding the relevant insurance liabilities or reinsurance liabilities, a reinsurance relationship is established between the government and NEXI.
(2) The amount of indemnity to be provided by the government for the reinsurance referred to in the preceding paragraph is the amount remaining after deducting the amount collected from the amount of insurance payment or reinsurance payment to be paid by NEXI.
(3) When NEXI has received payment of reinsurance pursuant to the provisions of the preceding paragraph, it must pay to the government the amount collected after demanding the payment of the reinsurance.
(4) When NEXI has received payment pursuant to the provisions of Article 22 of the former act that are to continue to be governed by prior laws and regulations pursuant to the provisions of paragraph (1) of the preceding Article, it must pay to the government the amount of the relevant payment received.
(5) Beyond what is provided for in the preceding three paragraphs, other necessary matters regarding the reinsurance relationships referred to in paragraph (1) are provided for by Order of the Ministry of Economy, Trade and Industry.
(6) When government reinsurance business activities are to take place pursuant to the provisions of paragraph (1), the term "reinsurance" in Article 182 of the Act on Special Accounts (Act No. 23 of 2007) is deemed to be replaced with "reinsurance and reinsurance referred to in Article 10, paragraph (1) of the Supplementary Provisions to the Act Partially Amending the Trade and Investment Insurance Act (Act No. 202 of 1999)"; the term "of reinsurance" in Article 184, item (i), (a) and item (ii), (a) of the relevant Act is deemed to be replaced with "of reinsurance and reinsurance referred to in Article 10, paragraph (1) of the Supplementary Provisions to the Act Partially Amending the Trade and Investment Insurance Act"; the term "Article 61, paragraph (1)" in item (i), (b) of that Article is deemed to be replaced with "Article 61, paragraph (1) and Article 10, paragraph (3) of the Supplementary Provisions to the Act Amending Part of the Trade and Investment Insurance Act"; the term "Article 61, paragraph (2)" in (h) of that item is deemed to be replaced with "Article 61, paragraph (2) and Article 10, paragraph (4) of the Supplementary Provisions to the Act Partially Amending the Trade and Investment Insurance Act"; the term "and government reinsurance under the Trade and Investment Insurance Act" in Article 186, paragraph (1), item (iii) of the relevant Act is deemed to be replaced with "and government reinsurance under the Trade and Investment Insurance Act, and reinsurance referred to in Article 10, paragraph (1) of the Supplementary Provisions to the Act Partially Amending the Trade and Investment Insurance Act"; and the term "and Article 61, paragraph (2) of the Trade and Investment Insurance Act" in Article 191, paragraph (2) of the relevant Act is deemed to be replaced with "and Article 61, paragraph (2) of the Trade and Investment Insurance Act and Article 10, paragraph (4) of the Supplementary Provisions to the Act Partially Amending the Trade and Investment Insurance Act."
(Delegation to Cabinet Order)
Article 15  Beyond what is provided for in Articles 2 through 10 and in Article 13 of the Supplementary Provisions, necessary transitional measures accompanying the establishment of NEXI, and other necessary transitional measures regarding the enforcement of this Act, are specified by Cabinet Order.
Supplementary Provisions  [Act No. 84 of May 26, 2000]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on June 1, 2000.
Supplementary Provisions  [Act No. 75 of June 27, 2001]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on April 1, 2002 (referred to below as the "effective date"), and applies regarding short term company bonds, etc. issued after the effective date.
(Transitional Measures Concerning the Application of Penal Provisions)
Article 7  Where the provisions then in force remain applicable pursuant to penal provisions concerning conduct that a person has engaged in before the effective date and conduct that a person has engaged in after the effective date but which, pursuant to the provisions of these Supplementary Provisions, is to continue to be governed by prior laws and regulations.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 8  Beyond what is provided for in these Supplementary Provisions, other necessary transitional measures concerning the enforcement of this Act are specified by Cabinet Order.
(Review)
Article 9  After five years from the enforcement of this Act, the government is to perform a review regarding the systems related to transfer institutions, while taking into consideration the status of enforcement of this Act and changes in the relevant socioeconomic factors, and enact necessary measures based on the results of the review when the government finds it necessary.
Supplementary Provisions  [Act No. 65 of June 12, 2002]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on January 6, 2003.
Supplementary Provisions  [Act No. 76 of June 2, 2004]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the date on which the Bankruptcy Act (Act No. 75 of 2004; referred to as the "New Bankruptcy Act" in paragraph (8) of the next Article, and Article 3, paragraph (8), Article 5, paragraphs (8), (16) and (21), Article 8, paragraph (3), and Article 13 of the Supplementary Provisions) comes into effect.
(Transitional Measures Concerning the Application of Penal Provisions)
Article 12  Regarding the application of penal provisions to any acts committed before the date of enforcement as well as any acts committed on or after the date of enforcement if prior laws and regulations continue to govern pursuant to the provisions of Article 2, paragraph (1), Article 3, paragraph (1), Article 4, Article 5, paragraphs (1), (9), (17), (19) and (21) and Article 6, paragraphs (1) and (3) of the Supplementary Provisions, prior laws and regulations continue to govern.
(Delegation to Cabinet Order)
Article 14  Beyond what is provided for in Article 2 through the preceding Article of the Supplementary Provisions, other necessary transitional measures concerning the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 88 of June 9, 2004]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the day specified by Cabinet Order within a period not exceeding five years from the date of promulgation (referred to below as the "effective date").
Supplementary Provisions  [Act No. 87 of July 26, 2005]  [Extract]
This Act comes into effect on the date on which the Companies Act comes into effect.
Supplementary Provisions  [Act No. 23 of March 31, 2007]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on April 1, 2007, and applies from the FY2007 budget.
(Transitional Measures Concerning Penal Provisions)
Article 391  Prior laws and regulations continue to govern the applicability of penal provisions to conduct that a person has engaged in before this Act comes into effect and conduct that a person engages in after this Act comes into effect but which, pursuant to these Supplementary Provisions, is to continue to be governed by prior laws and regulations.
(Delegation of Other Transitional Measures to Cabinet Order)
Article 392  Beyond what is provided for in Article 2 through Article 65, Article 67 through Article 259, and Article 382 through the preceding Article of the Supplementary Provisions, other necessary transitional measures concerning the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 57 of June 6, 2008]
This Act comes into effect on the date on which the Insurance Act comes into effect.
Supplementary Provisions  [Act No. 19 of April 11, 2014]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the day specified by Cabinet Order within a period not exceeding ten months from the date of promulgation; provided, however, that the provisions of Article 4 of the Supplementary Provisions come into effect on the date of promulgation.
(Transitional Measures for Former Insurance)
Article 2  Regarding general export insurance, export payments insurance, export guarantee insurance, prepayment import insurance, intermediary trade insurance, overseas investment insurance, and overseas untied loan insurance underwritten by the Incorporated Administrative Agency Nippon Export and Investment Insurance before the enforcement of this Act (referred to below as "former insurance" in this Article), and insurance relationships for reinsurance of former insurance established before the enforcement of this Act, prior laws and regulations continue to govern.
(Transitional Measures Concerning Penal Provisions)
Article 3  Prior laws and regulations continue to govern the applicability of penal provisions to conduct in which a person engages before this Act comes into effect.
(Delegation to Cabinet Order)
Article 4  Beyond what is provided for in these Supplementary Provisions, the transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 67 of June 13, 2014]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on the date on which the Act Partially Amending the Act on General Rules for Incorporated Administrative Agencies (Act No. 66 of 2014; referred to below as the "Act Amending the Act on General Rules") comes into effect; provided, however, that the provisions stated in the following items come into effect on the dates prescribed respectively in those items:
(i) the provisions of Article 14, paragraph (2), Article 18, and Article 30 of the Supplementary Provisions: the date of promulgation.
(Effect of Dispositions, etc.)
Article 28  Any dispositions, procedures or other acts conducted or to be conducted before the enforcement of this Act, pursuant to the provisions of the respective Acts before amendment by this Act (including orders issued based on the Act), for which the corresponding provisions exist in the respective Acts amended by this Act (including orders issued based on the Acts; referred to below as the "new Act or Cabinet Order" in this Article), are deemed to be dispositions, procedures or other acts conducted or to be conducted pursuant to the corresponding provisions of the new Act or Cabinet Order, except those otherwise provided by Acts (including Cabinet Orders issued based on the Acts).
(Transitional Measures Concerning Penal Provisions)
Article 29  Where the provisions then in force remain applicable pursuant to penal provisions concerning any acts committed before the enforcement of this Act as well as any acts committed after the enforcement of this Act when the provisions previously in force remain in force pursuant to the provisions of these Supplementary Provisions, prior laws and regulations continue to govern.
(Delegation to Other Cabinet Orders of Other Transitional Measures, etc.)
Article 30  Beyond what is provided for in Article 3 through the preceding Article of the Supplementary Provisions, transitional measures necessary for the enforcement of this Act (including transitional measures concerning penal provisions) are specified by Cabinet Order (or regarding matters under the jurisdiction of the National Personnel Authority, by the Rules of the National Personnel Authority).
Supplementary Provisions  [Act No. 59 of July 17, 2015]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on April 1, 2017; provided, however, that the provisions stated in the following items come into effect on the dates specified respectively in those items:
(i) the provisions of the following Article through Article 7 of the Supplementary Provisions, and Article 11, Article 13, paragraph (2), Article 14, and Article 26 of the Supplementary Provisions: the date of promulgation;
(ii) International Trade and Investment Insurance Act in Article 1: the provisions amending Article 2, paragraph (18), Article 27, paragraph (2), item (i), (h), Article 31, paragraph (2), item (i), (g) and item (ii), (e) of that paragraph, and Article 34, paragraph (2), and the provisions of Article 23 of these Supplementary Provisions: April 1, 2016.
(Organizing Committee Member)
Article 2  The Minister of Economy, Trade and Industry orders organizing committee member to perform the duties of an incorporator regarding the incorporation of Nippon Export and Investment Insurance (referred to below as the "Company").
(Articles of Incorporation)
Article 3  (1) An organizing committee member must create articles of incorporation and obtain the authorization of the Minister of Economy, Trade and Industry.
(2) When the Minister of Economy, Trade and Industry intends to give the authorization referred to in the preceding paragraph, the Minister must consult with the Minister of Finance in advance.
(Shares Issued at The Incorporation of a Company)
Article 4  (1) The following matters concerning the shares to be issued at the incorporation of the Company and the total number of shares that may be issued by the Company must be prescribed by articles of incorporation:
(i) the number of shares;
(ii) the amount to be paid in for the shares (meaning the amount of monies paid in, or assets other than monies contributed, in exchange for one share);
(iii) the matters concerning its amount of stated capital and capital reserve.
(2) Regarding shares issued in connection with the incorporation of the Company, notwithstanding the provisions of Article 445, paragraph (2) of the Companies Act (Act No. 86 of 2005), the amount exceeding half of the amount of assets contributed by the government and Nippon Export and Investment Insurance (referred to below as "NEXI") at the time of incorporation of the Company may not be recorded as stated capital, pursuant to the provisions of Article 6 of the Supplemental Provisions. In this case, the term "this Act" in Article 445, paragraph (1) of that Act is deemed to be replaced with "this Act or the Act Partially Amending the Act on International Trade and Investment Insurance Act and Special Accounts (Act No. 59 of 2015)".
(Subscription for Shares)
Article 5  (1) The total number of shares to be issued at the time of incorporation of the Company is to be subscribed by the government and NEXI, and an organizing committee member is to allocate the shares to the government and NEXI.
(2) The rights of a share subscriber regarding the incorporation of the Company through the shares allotted to NEXI pursuant to the provisions of the preceding paragraph are exercised by the government.
(Contribution)
Article 6  (1) When the Company is established, the government is to contribute to the Company the assets (excluding those specified by Cabinet Order) belonging to the trade reinsurance special account (referred to below as the "Former Trade Reinsurance Special Account") established pursuant to the provisions of Article 2, paragraph (1), item (xiv) of the Act on Special Accounts before amendment by the provisions of Article 2 (referred to below as the "Former Special Account Act").
(2) NEXI is to contribute all of its assets to the Company upon the incorporation of the Company.
(Organizational Meeting)
Article 7  For the application of the provisions of Article 65, paragraph (1) of the Companies Act to the incorporation of the Company, the phrase "on and after either the date referred to in Article 58, paragraph (1), item (iii) or the last day of the period referred to in that item, whichever comes later" in that paragraph is deemed to be replaced with "after the allocation of shares under Article 5, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Act on International Trade and Investment Insurance Act and Special Accounts (Act No. 59 of 2015)".
(Incorporation of a Company)
Article 8  Payments related to capital contributions made by the government and NEXI pursuant to the provisions of Article 6 of the Supplementary Provisions are to be made at the time of the enforcement of this Act, and the Company is established at that time, notwithstanding the provisions of Article 49 of the Companies Act.
(Registration of Incorporation)
Article 9  Notwithstanding the provisions of Article 911, paragraph (1) of the Companies Act, the Company must register its incorporation without delay after its incorporation.
(Gratuitous Transfer to the Government)
Article 10  Shares of the Company acquired by NEXI through capital contributions are to be gratuitously transferred to the government at the time of the establishment of the Company.
(Exclusion from Application of the Companies Act)
Article 11  The provisions of Article 30 of the Companies Act and the provisions of Part II, Chapter I, Section 3 of that Act do not apply to the incorporation of the Company.
(Succession to Rights and Obligations of The National Government)
Article 12  Of the rights and obligations held by the national government at the time of incorporation of the Company, those concerning the reinsurance business by the government under the International Trade and Investment Insurance Act before amendment by the provisions of Article 1 (referred to below as "former International Trade and Investment Insurance Act") are succeeded to by the Company pursuant to the provisions of Cabinet Order, except for those specified by Cabinet Order.
(Dissolution, etc. of NEXI)
Article 13  (1) NEXI is to be dissolved at the time of the establishment of the Company, and the Company succeeds to all of NEXI's rights and obligations as of that time.
(2) Regarding the application of the provisions of Article 32, paragraph (1), item (ii) of the Act on General Rules to matters for which NEXI is required to undergo an evaluation pursuant to the provisions of that paragraph after the close of the business year immediately preceding its last business year during the Period for Medium-term Objectives (meaning the Period for the Medium-term Objectives prescribed in Article 29, paragraph (2), item (i) of Act on General Rules for Incorporated Administrative Agencies (Act No. 103 of 1999; referred to below as the "Act on General Rules"); the same applies below in this Article) that ends on March 31, 2017, the phrase "the operational performance during the relevant business year and the operational performance during the Period for the Medium-term Objectives that are expected to be achieved by the time of the end of the Period for the Medium-term Objectives" in that item is deemed to be replaced with "the operational performance during the relevant business year".
(3) Regarding NEXI's operational performance during its last business year during the Period for the Medium-term Objectives ending on March 31, 2017 and its operational performance during the Period for the Medium-term Objectives, the Company is to undergo an evaluation in accordance with prior laws and regulations. In this case, the Company is to submit and publicize reports under the provisions of Article 32, paragraph (2) of the Act on General Rules, and notices under the provisions of the first sentence of paragraph (4) of that Article and orders pursuant to the provisions of paragraph (6) of that Article are to be issued to the Company.
(4) Any acts required, pursuant to the provisions of Article 38 and Article 39, paragraph (1) of the Act on General Rules, to be performed by an Incorporated Administrative Agency in connection with the financial statements, business report and settlement of accounts prescribed in Article 38, paragraph (1) of the Act on General Rules related to the business year of NEXI ending on March 31, 2017 are to be performed by the Company in accordance with prior laws and regulations.
(5) Regarding the disposition of profits and losses of the Company for the business year ending March 31, 2017, prior laws and regulations continue to govern.
(6) Registration of dissolution in the case that NEXI has been dissolved pursuant to the provisions of paragraph (1) is specified by Cabinet Order.
(Value of Property Succeeded to)
Article 14  (1) The value of the assets and liabilities that the Company succeeds to from the national government and NEXI pursuant to the provisions of Article 12 of the Supplementary Provisions and paragraph (1) of the preceding Article (referred to as "succeeded assets" in the following paragraph) is to be the value evaluated by the evaluation committee members.
(2) When the evaluation committee members intend to make an evaluation pursuant to the provisions of the preceding paragraph, they are to use the market value of the succeeded property on the day of formation of the Company as the standard; provided, however, that if the evaluation committee members find it inappropriate to use the market value in consideration of the type, use, and any other matters concerning the succeeded property, they may choose not to use the market value of the succeeded property.
(3) Beyond what is provided for in the preceding two paragraphs, the evaluation committee members and other necessary matters concerning evaluation are specified by Cabinet Order.
(Transitional Measures Concerning the Application of the National Public Officers' Mutual Aid Association Act to Persons Who Have Continued to Become the Company's Directors, etc. from NEXI's Officers, etc.)
Article 15  (1) On the day preceding the effective date of this Act (referred to below as the "effective date" in this Article and Article 31 of the Supplementary Provisions), if persons working as officers or employees of NEXI (on the same day, among the employees and the incorporated administrative agencies that have jurisdiction over them (meaning incorporated administrative agencies prescribed in Article 2, paragraph (1), item (i) of the Act on General Rules for Incorporated Administrative Agencies) prescribed in Article 2, paragraph (1), item (i) of the National Public Officers Mutual Aid Association Act who belong to the Ministry of Economy, Trade and Industry pursuant to the provisions of Article 3, paragraph (1) of the same Act as applied by replacing terms pursuant to the provisions of Article 124-3 of the same Act, limited to those who are members of a national public service mutual aid association stated in Appended Table 2 of the National Public Officers Mutual Aid Association Act (referred to below in this paragraph and paragraph (3) as "the Ministry of Economy, Trade and Industry Mutual Aid Association") organized by the employees prescribed in Article 2, paragraph (1), item (i) of that Act who are deemed to be employees pursuant to the provisions of 124-3 of that Act) continue to be directors, executive officers, accounting advisors, company auditors, or employees (limited to those equivalent to those deemed to be employees prescribed in the same item pursuant to the provisions of that Article; referred to below as "officers and employees" in this Article) of the Company on the effective date, and continue to be officers and employees of the Company on and after the effective date, regarding the application of the provisions of the same Act, when the relevant officers and employees have made a request to the Ministry of Economy, Trade and Industry Mutual Aid Association by the final day in the 20-day period that commences on the effective date (if the METI mutual aid association finds that there are justifiable grounds, the day on which this is found), the relevant officers and employees are deemed to fall under the employees prescribed in the same item who have organized the Ministry of Economy, Trade and Industry Mutual Aid Association.
(2) If an officer or employee of the Company prescribed in the preceding paragraph has died without making the request referred to in that paragraph within the period prescribed in that paragraph, the request may be made by the surviving family members (limited to persons equivalent to the surviving family members prescribed in Article 2, paragraph (1), item (iii) of the National Public Officers Mutual Aid Association Act; the same applies in the following paragraph) of the officer or employee within the period.
(3) For the application of the National Public Officers Mutual Aid Association Act, if a person working as an officer or employee of NEXI on the day before the effective date (limited to a person who is a partner of the Ministry of Economy, Trade and Industry Mutual Aid Association on the same day) becomes an officer or employee of the Company without interruption on the effective date, and if the officer or employee or their surviving family members fail to make the request referred to in paragraph (1) within the period prescribed in the same paragraph, the officer or employee is deemed to have retired (meaning the retirement prescribed in Article 2, paragraph (1), item (iv) of that Act) on the day before the effective date.
(Burden of Expenses under the Act for Enforcement Regarding Long-Term Benefits Under the National Public Officers Mutual Aid Association Act)
Article 16  Among the rights and obligations that the Company succeeds to pursuant to the provisions of Article 12 of the Supplementary Provisions, necessary matters concerning the burden of the expenses prescribed in Article 3-2, paragraph (2) of the Act for Enforcement of the National Public Officers Mutual Aid Association Act on Long-Term Benefits (Act No. 129 of 1958) and the additional expenses prescribed in Article 54, paragraph (1) of that Act are specified by Cabinet Order.
(Transitional Measures on Duty of Confidentiality)
Article 17  Prior laws and regulations continue to govern the obligation of persons who have been officers or employees of NEXI not to divulge or misappropriate any secret that has come to their knowledge in the course of their duties, even after the enforcement of this Act.
(Transitional Measures Concerning Trade Names)
Article 18  The provisions of Article 6 of the International Trade and Investment Insurance Act amended by the provisions of Article 1 (referred to below as the "New International Trade and Investment Insurance Act") do not apply for six months after the enforcement of this Act to persons who have used the characters NEXI in their names.
(Transitional Measures Concerning Business Plans, etc.)
Article 19  For the application of the provisions of Articles 18 and 27 of the New International Trade and Investment Insurance Act to the business plan and the reimbursement plan for the business year to which the date of incorporation of the Company belongs, the term "before the commencement of every business year" in these provisions is deemed to be replaced with "without delay after incorporation of the Company".
(Special Provisions for Taxation on Corporation Tax)
Article 20  (1) If the provisions of the Corporation Tax Act (Act No. 34 of 1965) and other laws and regulations concerning corporation tax are applied to the assets and liabilities that the Company succeeds to pursuant to the provisions of Article 12 and Article 13, paragraph (1) of the Supplementary Provisions, the value evaluated by the evaluation committee members pursuant to the provisions of Article 14, paragraph (1) of the Supplementary Provisions is deemed to be the value at the time of succession.
(2) Regarding the application of the provisions of Article 62-8 of the Corporation Tax Act related to capital contributions made under the provisions of Article 6 of the Supplementary Provisions, in paragraph (7) of that Article, the phrase "(meaning the amount deemed to be the amount of the liability adjustment account for difference pursuant to the provisions of the paragraph as of the time of a non-qualified merger, etc.)" is deemed to be replaced with "(meaning the amount deemed to be the amount of the liability adjustment account for difference pursuant to the provisions of the paragraph as of the time of a non-qualified merger, etc.; the same applies below in this paragraph)", the phrase "if" is deemed to be replaced with "if", the phrase "amount as of the end of the business year containing the day preceding the date of the merger)" is deemed to be replaced with "amount as of the end of the business year containing the day preceding the date of the merger, and if the amounts of the liability adjustment accounts for difference relate to assets and liabilities that NEXI has succeeded to pursuant to the provisions of Article 12 (Succession to Rights and Obligations of the National Government) and Article 13, paragraph (1) (Dissolution of NEXI) of the Supplementary Provisions of the Act Partially Amending the Act on International Trade and Investment Insurance Act and Special Accounts (Act No. 59 of 2015) (referred to below as "assets and liabilities resulting from specific succession" in this paragraph), the initial amounts related to the respective amounts of the liability adjustment accounts for difference)", and the phrase "business year containing the day preceding the date of the merger)" is deemed to be replaced with "business year containing the day preceding the date of the merger, and if the amounts of the liability adjustment accounts for difference relate to assets and liabilities resulting from specific succession, the business year to which the date of establishment of NEXI belongs)".
(Special Provisions for Taxation on Registration and License Tax)
Article 21  Registration and license tax is not imposed on the registration of incorporation received by the Company pursuant to the provisions of Article 9 of the Supplementary Provisions and the registration received by the Company upon the delivery of assets related to capital contributions made by NEXI pursuant to the provisions of Article 6, paragraph (2) of the Supplementary Provisions.
(Transitional Measures Concerning Authorization of Entrustment of Business)
Article 22  (1) An authorization granted before the enforcement of this Act pursuant to the provisions of Article 15, paragraph (1) or Article 17, paragraph (1) of the former International Trade and Investment Insurance Act is deemed to be an authorization granted pursuant to the provisions of Article 14, paragraph (1) or Article 24, paragraph (1) of the new International Trade and Investment Insurance Act.
(2) A notification filed before the enforcement of this Act pursuant to the provisions of Article 23, paragraph (1) of the former International Trade and Investment Insurance Act is deemed to be a notification filed pursuant to the provisions of Article 40, paragraph (1) of the new International Trade and Investment Insurance Act.
(Transitional Measures for Former Insurance)
Article 23  Regarding general trade insurance, trade insurance for capital contributing foreign corporation, etc., international trade loan insurance, and overseas untied loan insurance underwritten by NEXI before the effective date of the provisions stated in Article 1, item (ii) of the Supplementary Provisions, and insurance relationships for reinsurance of these trade insurances effected before the same date, prior laws and regulations continue to govern.
(Transitional Measures Concerning Penal Provisions)
Article 25  Regarding the application of penal provisions to any acts committed before the enforcement of this Act (or the respective provisions stated in Article 1, item (ii) of the Supplementary Provisions; the same applies below in this Article and the following Article) as well as any acts committed after the enforcement of this Act when the provisions then in force remain applicable pursuant to the Supplementary Provisions, prior laws and regulations continue to govern.
(Delegation to Cabinet Order)
Article 26  Beyond what is provided for in these Supplementary Provisions, transitional measures necessary for the enforcement of this Act (including transitional measures concerning penal provisions) are specified by Cabinet Order.
Supplementary Provisions  [Act No. 71 of December 11, 2019]  [Extract]
This Act comes into effect on the date on which the Amended Companies Act comes into effect; provided, however, that the provisions stated in the following items come into effect on the dates prescribed in the respective items:
(i) the provisions in Article 9 amending Article 269 of the Act on Book-Entry Transfer of Corporate Bonds and Shares (limited to the portion amending "Article 68, paragraph (2)" to "Article 86, paragraph (1)"); the provisions in Article 21 amending Article 56, paragraph (2) of the Act on Promotion of Private Finance Initiative and Article 4 of the Supplementary Provisions; the provisions in Article 41 amending Article 1-2-14, paragraph (1) of the Supplementary Provisions of the Insurance Business Act; the provisions in Article 47 amending Article 16, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Insurance Business Act; the provisions in Article 51 amending Article 27 of Act on the Fund Corporation for the Overseas Development of Japan's ICT and Postal Services; the provisions of Articles 78 and 79; the provisions in Article 89 amending Article 26, paragraph (1) of the Supplementary Provisions of the Act on Restructuring and Reinforcement of Credit Businesses by Norinchukin and Specified Agricultural and Fishery Cooperatives; and the provisions of Articles 124 and 125: the date of promulgation.
Supplementary Provisions  [Act No. 8 of March 31, 2020]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on April 1, 2020; provided, however, that the provisions stated in the following items come into effect on the dates specified respectively in those items:
(i) through (iv) omitted;
(v) the following provisions: April 1, 2022:
(a) omitted;
(b) the provisions of Article 3 (excluding the provisions in that Article to amend Article 52, paragraph (1) of the Corporation Tax Act (excluding the portion related to item (i) of that paragraph) and to amend Article 54, paragraph (1) of the same Act), and the provisions of Articles 14 through 18 of the Supplementary Provisions, Articles 20 through 37, Article 139 (limited to the provisions to amend Article 32, paragraph (5) of the Land Value Tax Act (Act No. 69 of 1991)), Article 143, Article 150 (limited to the provisions to amend Article 260-2, paragraph (16) of the Local Autonomy Act (Act No. 67 of 1947)), Articles 151 through 156, Articles 159 through 162, Article 163 (limited to the provisions to amend Article 58, paragraph (1) of the Act on Limitation on Shareholding by Banks and Other Financial Institutions (Act No. 131 of 2001)), and Articles 164, 165 and 167.
(Transitional Measure Concerning Penal Provisions)
Article 171  Prior laws and regulations continue to govern the applicability of penal provisions to conduct in which a person engages before this Act comes into effect (for the provisions stated in the items of Article 1 of the Supplementary Provisions, the relevant provisions; the same applies below in this Article); to conduct in which a person engages after this Act comes into effect in a situation in which prior laws and regulations continue to govern pursuant to these Supplementary Provisions; and to conduct in which a person engages after this Act comes into effect in a situation for which prior laws remain in force pursuant to these Supplementary Provisions.
(Delegation to Cabinet Order)
Article 172  Beyond what is provided for in these Supplementary Provisions, transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 11 of March 31, 2021]  [Extract]
(Effective Date)
Article 1  This Act comes into effect on April 1, 2021.
Supplementary Provisions  [Act No. 25 of April 15, 2022]
(Effective Date)
Article 1  This Act comes into effect on the day specified by Cabinet Order within a period not exceeding three months from the date of promulgation; provided, however, that the provisions of Article 4 of the Supplementary Provisions come into effect on the date of promulgation.
(Transitional Measures for Former Insurance)
Article 2  Prior laws and regulations continue to govern insurance relationships for general trade insurance, trade insurance for capital contributing foreign corporation, etc., international trade loan insurance, prepayment import insurance, overseas investment insurance, and overseas untied loan insurance underwritten by Nippon Export and Investment Insurance before the enforcement of this Act.
(Transitional Measures Concerning Penal Provisions)
Article 3  Prior laws and regulations continue to govern the applicability of penal provisions to conduct in which a person engages before this Act comes into effect.
(Delegation to Cabinet Order)
Article 4  Beyond what is provided for in these Supplementary Provisions, the transitional measures necessary for the enforcement of this Act are specified by Cabinet Order.
Supplementary Provisions  [Act No. 68 of June 17, 2022]  [Extract]
(Effective Date)
(1) This Act comes into effect on the date on which the Act Partially Amending the Penal Code and Other Acts come into effect; provided, however, that the provisions stated in the following items come into effect on the dates prescribed respectively in those items:
(i) the provisions of Article 509: the date of promulgation.