Article 1The purpose of this Act, given that illegal harvesting of forests (hereinafter referred to as "illegal logging") in Japan or foreign nations and the distribution of wood pertaining to illegal logging may affect prevention of global warming, conservation of the natural environment, and supply of forest products and other diverse functions of forests, and that illegal logging may also impede fair transactions in the wood market, is to promote sustainable and sound development of the wood industry with consideration for the conservation of the natural environment by specifying basic matters for promoting the distribution and use of legally harvested wood and wood products and taking measures, etc., to ensure the use of legally harvested wood and wood products by wood-related business entities, thereby contributing to the conservation of the local and global environment.

Article 2(1)The term "wood and wood products" as used in this Act means wood (excluding that collected or disposed of after being used or without being used, and those made from the wood; hereinafter the same applies in this Article) and furniture, paper, and other goods manufactured by processing wood or using wood as a main raw material, which are specified by order of the competent ministries (excluding those that are collected or disposed of after being used or without being used).

(2)The term "legally harvested wood and wood products" as used in this Act means wood made from trees logged in accordance with the laws and regulations of Japan or the country of harvest (including Prefectural or Municipal Ordinances in the case of Japanese laws and regulations; the same applies in Article 6, paragraph (1), item (i)) and furniture, paper, and other goods manufactured by processing the wood or using the wood as a main raw material, which are specified by order of the competent ministries (excluding those that are collected or disposed of after being used or without being used).

(3)The term "wood-related business entity" means a person who conducts a business that manufactures, processes, imports, exports, or sells wood and wood products (excluding sale to consumers), a business that builds or constructs buildings and other structures using wood, and other businesses using wood and wood products, which are specified by order of the competent ministries.

Article 3(1)In order to comprehensively and systematically promote the distribution and use of legally harvested wood and wood products, the competent ministers are to specify the Basic Policy for Promoting the Distribution and Use of Legally Harvested Wood and Wood Products (hereinafter referred to simply as "Basic Policy" in this Article and Article 6, paragraph (2)).

(2)The following matters are to be specified in the Basic Policy:

(3)The competent ministers must, when intending to specify or revise the Basic Policy, consult with Minister of the Environment and the heads of relevant administrative organs.

(4)The competent ministers must, when having specified or revised the Basic Policy, publicly announce this without delay.

Article 4(1)The State must endeavor to take measures such as securing funds necessary to promote the distribution and use of legally harvested wood and wood products.

(2)In order to contribute to promoting the distribution and use of legally harvested wood, etc., the State is to collect and provide information on the situation of domestic and international production and distribution of wood and wood products, laws and regulations concerning the sustainable use of forests in Japan and other nations, laws and regulations concerning trading, etc., and other laws and regulations concerning the ensuring of appropriate distribution of wood and wood products, and take other necessary measures, as well as publicize the system pertaining to the registration, announce excellent initiatives by Registered Wood-Related Business Entities set forth in Article 13, paragraph (1), and take other necessary measures to promote the registration of wood-related business entities set forth in Article 8.

(3)Through educational and publicity activities, etc., the State is to take necessary measures to enhance business entities' and citizens' understanding on the significance of promoting the distribution and use of legally harvested wood and wood products.

Article 5A business entity must endeavor to use legally harvested wood and wood products when using wood and wood products.

Article 6(1)In order to promote the distribution and use of legally harvested wood and wood products, the competent ministers are to specify the following matters that would serve as the standards of judgment for wood-related business entities, with regard to measures that wood-related business entities take to ensure the use of legally harvested wood and wood products by an order of the competent ministries:

(2)Matters that would serve as the standards of judgment for wood-related business entities set forth in the preceding paragraph are to be specified in line with the Basic Policy and by taking into consideration the situation of domestic and international production and distribution of wood and wood products and the enforcement of laws and regulations concerning the sustainable use of forests in Japan and other nations, laws and regulations concerning trading, etc., and other laws and regulations concerning the ensuring of appropriate distribution of wood and wood products, as well as the types of business engaged in by wood-related business entities and other circumstances, and necessary revision is to be made in accordance with the change in the circumstances.

Article 7The competent ministers may, when finding it necessary to promote the distribution and use of legally harvested wood and wood products, provide wood-related business entities with necessary guidance and advice with regard to the measures for ensuring the use of legally harvested wood and wood products, by considering the matters that should be the standards of judgment for wood-related business entities set forth in paragraph (1) of the preceding Article.

Article 8A wood-related business entity that takes measures to ensure the use of legally harvested wood and wood products, with regard to the wood and wood products to be handled, will be entitled to obtain registration from a person who has been registered by the competent ministers (hereinafter referred to as "Registering Organization") pursuant to the provisions of Articles 16 through 18, pursuant to the provisions of order of the competent ministries.

Article 9(1)A person who intends to be registered as a wood-related business entity set forth in the preceding Article must submit a written application stating the following matters to a Registering Organization.

(2)A document stating matters specified by an order of the competent ministries with regard to the details of measures to be taken to ensure the use of legally harvested wood and wood products must be attached to the written application set forth in the preceding paragraph.

Article 10(1)Upon application for registration under the provisions of the preceding Article, except for the event of refusal of the registration pursuant to the provisions of paragraph (1) of the following Article, a Registering Organization must register the following matters in the wood-related business entity register:

(2)A Registering Organization must, when having made a registration under the provisions of the preceding paragraph, notify the applicant thereof and publicly notify the matters specified by the competent ministries without delay.

Article 11(1)A Registering Organization must refuse registration when an application for registration under the provisions of Article 9 falls under any of the following items:

(2)Upon refusal of the registration due to the provisions of the preceding paragraph, the Registering Organization must notify the applicant thereof giving the reason without delay.

Article 12(1)The registration as a wood-related business entity set forth in Article 8 will cease to be effective upon the expiration of that period unless it is renewed every five years.

(2)The provisions of the preceding three Articles apply mutatis mutandis to a renewal set forth in the preceding paragraph.

Article 13(1)A person who was registered as a wood-related business entity set forth in Article 8 (hereinafter referred to as "Registered Wood-Related Business Entity") may use the name of Registered Wood-Related Business Entity within the scope of business for which measures are taken to ensure the use of legally harvested wood and wood products concerning the relevant registration, pursuant to the provisions of order of the competent ministries.

(2)A Registered Wood-Related Business Entity is prohibited to use the name of Registered Wood-Related Business Entity or any name similar thereto which may cause confusion, except for the cases specified in the preceding paragraph.

(3)A person who is not a Registered Wood-Related Business Entity may not use the name of Registered Wood-Related Business Entity or any name similar thereto that may cause confusion.

Article 14(1)When a Registered Wood-Related Business Entity falls under any of the following items, the Registering Organization may rescind the registration of the relevant Registered Wood-Related Business Entity:

(2)The provisions of Article 11, paragraph (2) apply mutatis mutandis to the case set forth in the preceding paragraph.

Article 15A Registering Organization that has deleted a registration under the provisions of paragraph (1) of the preceding Article or received an application for the deletion of a registration must delete the registration of the relevant Registered Wood-Related Business Entity and publicly notify thereof.

Article 16The registration from the competent ministers set forth in Article 8 (hereinafter referred to as "Registration of Registering Organization") is carried out based on an application made by a person who intends to conduct the affairs concerning the implementation of registration of a wood-related business entity set forth in the same Article (hereinafter referred to as "Registering Procedures).

Article 17A person who falls under any of the following items may not be registered as a Registering Organization.

Article 18(1)The competent ministers must register a person who has applied for Registration of Registering Organization pursuant to the provisions of Article 16 (excluding those who fall under any item of the preceding Article; hereinafter referred to as "Applicant for Registration") if that person conforms to all of the following requirements. In this case, the necessary procedures concerning registration are specified by an order of the competent ministries.

(2)Registration of a Registering Organization is to be made, with the following matters stated in the Registering Organization registry:

Article 19(1)Registration of a Registering Organization will cease to be effective as a result of the expiration of the registration period unless it is renewed every five years.

(2)The provisions of the preceding three Articles apply mutatis mutandis to the renewal of the registration of a Registering Organization.

Article 20(1)A Registering Organization must, when requested to conduct Registering Procedures, do so without delay unless there is just cause.

(2)A Registering Organization must conduct Registering Procedures fairly using the method that conforms to the criteria specified by an order of the competent ministries.

Article 21A Registering Organization must, when intending to change the address of its office where it conducts Registering Procedures, notify the competent ministers of the change two weeks prior to the date on which the change is scheduled to be made.

Article 22(1)A Registering Organization must establish the rules concerning Registering Procedures (hereinafter referred to as "Rules for Registering Procedures") and notify the competent ministers thereof before the commencement of the Registering Procedures. The same applies in the event of any change.

(2)The Rules for Registering Procedures must specify the implementation method of the Registering Procedures, the charge of the Registering Procedures, and matters specified by an order of the competent ministries.

Article 23A Registering Organization must, when intending to suspend or abolish all or part of Registering Procedures, notify the competent ministers thereof in advance pursuant to the provisions of order of the competent ministries.

Article 24(1)A Registering Organization must, within three months from the end of every fiscal year, prepare an inventory of property, balance sheet, profit and loss statement, or income and expenditure statement, and business report of that fiscal year (including an electronic or magnetic record (a record in an electronic format, a magnetic format, or any other format not recognizable to human perception that is used for information processing by a computer; hereinafter the same applies in this Article) when the relevant electronic or magnetic record is prepared instead of those documents; hereinafter referred to as "Financial Statements, etc.") and maintain them in its office for five years.

(2)A wood-related business entity or any other interested party may make the following requests at any time during the business hours of a Registering Organization; provided, however, that they must pay the expenses specified by the Registering Organization when making a request as mentioned in item (ii) or (iv) of this paragraph:

Article 25The competent ministers may, when finding that a Registering Organization ceases to conform to any of the items of Article 18, paragraph (1), order the Registering Organization to take necessary measures for conformity to the provisions.

Article 26The competent ministers may, when finding that a Registering Organization has violated the provisions of Article 20, order the Registering Organization to conduct Registering Procedures or take necessary measures to improve the means of registering a wood-related business entity or other operational procedures.

Article 27The competent ministers may, when a Registering Organization falls under any of the following items, rescind its registration or order it to suspend all or part of its Registering Procedures for a fixed period:

Article 28Pursuant to the provisions of an order of the competent ministries, a Registering Organization must prepare and keep books where it must enter the matters as specified by an order of the competent ministries concerning Registering Procedures.

Article 29The competent ministers must give public notice to that effect in an official gazette in the following cases:

Article 30The proceedings on the date of the hearing pertaining to the dispositions under the provisions of Article 27 must be made public.

Article 31When promoting the distribution and use of legally harvested wood and wood products, the State is to appropriately coordinate with business entities, private organizations, and other entities carrying out business activities that contribute to a shift of demand to legally harvested wood and wood products.

Article 32Given the fact that it is important to ensure harvesting of forests in the country of harvest in accordance with the laws and regulations of the country in order to promote the distribution and use of legally harvested wood and wood products in Japan that is dependent on imports for a major portion of the wood resources, the State is to take necessary measures to ensure international coordination for prevention of illegal logging in foreign nations and promote other international cooperation concerning the distribution and use of legally harvested wood and wood products.

Article 33(1)The competent ministers may, to the extent necessary for the enforcement of this Act, order a wood-related business entity to report the status of ensuring the use of legally harvested wood and wood products, or have the officials enter the business office, factory, workplace, or warehouse of the wood-related business entity and inspect account books, documents, and other articles.

(2)The competent ministers may, to the extent necessary for the enforcement of this Act, order a Registering Organization to report its business activities, or have the officials enter the business office and inspect the status of its business activities or account books, documents, and other items.

(3)An official who conducts an inspection pursuant to the provisions of the preceding two paragraphs must carry their identification card and present it to the persons concerned.

(4)The authority for the on-site inspection under the provisions of paragraphs (1) and (2) is not interpreted to be approval for a criminal investigation.

Article 34(1)The competent ministers in this Act are the Minister of Agriculture, Forestry and Fisheries, the Minister of Economy, Trade and Industry, and the Minister of Land, Infrastructure and Transportation; provided, however, that, with regard to the matters concerning the guidance and advice set forth in Article 7 and the collection of reports and on-site inspections set forth in paragraph (1) of the preceding Article, both the Minister of Agriculture, Forestry and Fisheries and the minister having jurisdiction over the business activities of the relevant wood-related business entity are the competent ministers.

(2)The order of the competent ministries in this Act is orders issued by the competent ministers.

(3)The authority of the competent ministers set forth in this Act may be delegated in part to a chief of local administrative offices as specified by an order of the competent ministries.

Article 35Beyond what is set forth in this Act, necessary matters for the enforcement of this Act are specified by an order of the competent ministries.

Article 36A person who has violated an order to suspend Registering Procedures under the provisions of Article 27 will be punished by imprisonment of not more than one year or a fine of not more than five hundred thousand yen.

Article 37A person who falls under any of the following items will be punished by a fine of not more than three hundred thousand yen:

Article 38A person who has failed to make a report pursuant to the provisions of Article 33, paragraph (1) or who has made a false report or refused, interfered with, or evaded the inspection under the provisions of the same paragraph will be punished by a fine of not more than two hundred thousand yen.

Article 39When the representative of a corporation or an agent, employee, or other worker of a corporation or an individual has, with regard to the business of the corporation or individual, committed the violations set forth in the preceding three Articles, not only the offender will be punished, but also the corporation or individual will be punished by the fine set forth in the respective Articles.

Article 40A person who has failed to prepare or maintain Financial Statements etc., failed to enter necessary matters in them, or has stated false matters violating the provisions of Article 24, paragraph (1), or has rejected requests under each item of paragraph (2) of the same Article without any justifiable grounds, will be punished by a non-penal fine of not more than two hundred thousand yen.