THE RIGHT OF ALIENS TO ENGAGE IN THE TRANSPORTATION BUSINESS UNDER JAPANESE LAW

I. Land Transportation
In Japan the national railways are operated by the State under the Japan National Railway Law. 1/ With the exception of the national railways, an alien or a foreign corporation desiring to engage in the transportation business by using railways must obtain permission from the Minister of Transprtation in accordance with the provisions of the Local Railways Law and the Tramways Law. 2/ Similarly, any alien desirous of engage in the trucking business must obtain a license from the same Minister under the Road Transportation Law and the Express Business Law. 3/ There exist no provisions expressly prohibiting an alien from operating a transportation business under these laws. 
II. Marine Transportation
Any alien who intends to do business in marine transportation must obtain a license from the Minister of Transportation under the provisions of the Marine Transportation Law and the Harbor Transportation.
1/ Law No. 256, December 20, 1948.
2/ Article 12 of Law No. 52, April 10, 1919, as amended by Law No. 120, 1967; Article 3 of Law No. 76, April 4, 1921, as amended by Law No. 140, 1962.
3/ Article 4 of Law No. 183, June 1, 1951, as amended by Law No.62, 1972; Article 4 of Law No. 241, December 7, 1949, as amended by Law No. 96, 1971THE RIGHT OF ALIENS TO ENGAGE IN THE TRANSPORTATION BUSINESS UNDER JAPANESE LAW

I. Land Transportation
In Japan the national railways are operated by the State under the Japan National Railway Law. 1/ With the exception of the national railways, an alien or a foreign corporation desiring to engage in the transportation business by using railways must obtain permission from the Minister of Transprtation in accordance with the provisions of the Local Railways Law and the Tramways Law. 2/ Similarly, any alien desirous of engage in the trucking business must obtain a license from the same Minister under the Road Transportation Law and the Express Business Law. 3/ There exist no provisions expressly prohibiting an alien from operating a transportation business under these laws. 
II. Marine Transportation
Any alien who intends to do business in marine transportation must obtain a license from the Minister of Transportation under the provisions of the Marine Transportation Law and the Harbor Transportation.
1/ Law No. 256, December 20, 1948.
2/ Article 12 of Law No. 52, April 10, 1919, as amended by Law No. 120, 1967; Article 3 of Law No. 76, April 4, 1921, as amended by Law No. 140, 1962.
3/ Article 4 of Law No. 183, June 1, 1951, as amended by Law No.62, 1972; Article 4 of Law No. 241, December 7, 1949, as amended by Law No. 96, 1971THE RIGHT OF ALIENS TO ENGAGE IN THE TRANSPORTATION BUSINESS UNDER JAPANESE LAW

I. Land Transportation
In Japan the national railways are operated by the State under the Japan National Railway Law. 1/ With the exception of the national railways, an alien or a foreign corporation desiring to engage in the transportation business by using railways must obtain permission from the Minister of Transprtation in accordance with the provisions of the Local Railways Law and the Tramways Law. 2/ Similarly, any alien desirous of engage in the trucking business must obtain a license from the same Minister under the Road Transportation Law and the Express Business Law. 3/ There exist no provisions expressly prohibiting an alien from operating a transportation business under these laws. 
II. Marine Transportation
Any alien who intends to do business in marine transportation must obtain a license from the Minister of Transportation under the provisions of the Marine Transportation Law and the Harbor Transportation.
1/ Law No. 256, December 20, 1948.
2/ Article 12 of Law No. 52, April 10, 1919, as amended by Law No. 120, 1967; Article 3 of Law No. 76, April 4, 1921, as amended by Law No. 140, 1962.
3/ Article 4 of Law No. 183, June 1, 1951, as amended by Law No.62, 1972; Article 4 of Law No. 241, December 7, 1949, as amended by Law No. 96, 1971THE RIGHT OF ALIENS TO ENGAGE IN THE TRANSPORTATION BUSINESS UNDER JAPANESE LAW

I. Land Transportation
In Japan the national railways are operated by the State under the Japan National Railway Law. 1/ With the exception of the national railways, an alien or a foreign corporation desiring to engage in the transportation business by using railways must obtain permission from the Minister of Transprtation in accordance with the provisions of the Local Railways Law and the Tramways Law. 2/ Similarly, any alien desirous of engage in the trucking business must obtain a license from the same Minister under the Road Transportation Law and the Express Business Law. 3/ There exist no provisions expressly prohibiting an alien from operating a transportation business under these laws. 
II. Marine Transportation
Any alien who intends to do business in marine transportation must obtain a license from the Minister of Transportation under the provisions of the Marine Transportation Law and the Harbor Transportation.
1/ Law No. 256, December 20, 1948.
2/ Article 12 of Law No. 52, April 10, 1919, as amended by Law No. 120, 1967; Article 3 of Law No. 76, April 4, 1921, as amended by Law No. 140, 1962.
3/ Article 4 of Law No. 183, June 1, 1951, as amended by Law No.62, 1972; Article 4 of Law No. 241, December 7, 1949, as amended by Law No. 96, 1971THE RIGHT OF ALIENS TO ENGAGE IN THE TRANSPORTATION BUSINESS UNDER JAPANESE LAW

I. Land Transportation
In Japan the national railways are operated by the State under the Japan National Railway Law. 1/ With the exception of the national railways, an alien or a foreign corporation desiring to engage in the transportation business by using railways must obtain permission from the Minister of Transprtation in accordance with the provisions of the Local Railways Law and the Tramways Law. 2/ Similarly, any alien desirous of engage in the trucking business must obtain a license from the same Minister under the Road Transportation Law and the Express Business Law. 3/ There exist no provisions expressly prohibiting an alien from operating a transportation business under these laws. 
II. Marine Transportation
Any alien who intends to do business in marine transportation must obtain a license from the Minister of Transportation under the provisions of the Marine Transportation Law and the Harbor Transportation.
1/ Law No. 256, December 20, 1948.
2/ Article 12 of Law No. 52, April 10, 1919, as amended by Law No. 120, 1967; Article 3 of Law No. 76, April 4, 1921, as amended by Law No. 140, 1962.
3/ Article 4 of Law No. 183, June 1, 1951, as amended by Law No.62, 1972; Article 4 of Law No. 241, December 7, 1949, as amended by Law No. 96, 1971-2-

Law. 4/  Although the above two laws do not expressly deny to aliens the 
right to engage in the marine transportation business, Article 42-3 of 
the latter Law provides that the "provisions of this Law, except those
of Article 28 to 31 inclusive [concerning antitrust and fair trade], shall 
not apply to the case where the marine transportation business is operated
by anyone other than a person who has the Japanese nationality or a 
juridical person or other association established under Japanese laws 
and ordinances."

However, cabotage by aliens is expressly prohibited under the 
Ship Law: 5/

None other than Japanese ships shall call at any port 
not open to foreign commerce and navigation or shall transport 
goods or passengers between Japanese ports, except in cases 
where otherwise provided by law or treaty, where she is going 
to avoid ship-wreck or capture, or where she has obtained 
permission of the competent Minister. 

Thus, with certain exceptions, no alien is permitted to engage 
in transportation of freight shipments between Japanese ports. Nevertheless, 
there is no provision expressly closing the transportation business 
to aliens using overseas routes beyond Japanese ports.

III. Air Transportation

Under the Civil Aeronautics Law, 6/ an alien or a foreign corporation

__________________________

4/ Law No. 187, June 1, 1949, as amended by Law No. 130, 1971.
5/ Law No. 46, March 8, 1899, as amended by Law No. 161, 1962.
6/ Law No. 231, July 15, 1952, as amended by Law No. 96, 1971.-2-

Law. 4/  Although the above two laws do not expressly deny to aliens the 
right to engage in the marine transportation business, Article 42-3 of 
the latter Law provides that the "provisions of this Law, except those
of Article 28 to 31 inclusive [concerning antitrust and fair trade], shall 
not apply to the case where the marine transportation business is operated
by anyone other than a person who has the Japanese nationality or a 
juridical person or other association established under Japanese laws 
and ordinances."

However, cabotage by aliens is expressly prohibited under the 
Ship Law: 5/

None other than Japanese ships shall call at any port 
not open to foreign commerce and navigation or shall transport 
goods or passengers between Japanese ports, except in cases 
where otherwise provided by law or treaty, where she is going 
to avoid ship-wreck or capture, or where she has obtained 
permission of the competent Minister. 

Thus, with certain exceptions, no alien is permitted to engage 
in transportation of freight shipments between Japanese ports. Nevertheless, 
there is no provision expressly closing the transportation business 
to aliens using overseas routes beyond Japanese ports.

III. Air Transportation

Under the Civil Aeronautics Law, 6/ an alien or a foreign corporation

__________________________

4/ Law No. 187, June 1, 1949, as amended by Law No. 130, 1971.
5/ Law No. 46, March 8, 1899, as amended by Law No. 161, 1962.
6/ Law No. 231, July 15, 1952, as amended by Law No. 96, 1971.-2-

Law. 4/  Although the above two laws do not expressly deny to aliens the 
right to engage in the marine transportation business, Article 42-3 of 
the latter Law provides that the "provisions of this Law, except those
of Article 28 to 31 inclusive [concerning antitrust and fair trade], shall 
not apply to the case where the marine transportation business is operated
by anyone other than a person who has the Japanese nationality or a 
juridical person or other association established under Japanese laws 
and ordinances."

However, cabotage by aliens is expressly prohibited under the 
Ship Law: 5/

None other than Japanese ships shall call at any port 
not open to foreign commerce and navigation or shall transport 
goods or passengers between Japanese ports, except in cases 
where otherwise provided by law or treaty, where she is going 
to avoid ship-wreck or capture, or where she has obtained 
permission of the competent Minister. 

Thus, with certain exceptions, no alien is permitted to engage 
in transportation of freight shipments between Japanese ports. Nevertheless, 
there is no provision expressly closing the transportation business 
to aliens using overseas routes beyond Japanese ports.

III. Air Transportation

Under the Civil Aeronautics Law, 6/ an alien or a foreign corporation

__________________________

4/ Law No. 187, June 1, 1949, as amended by Law No. 130, 1971.
5/ Law No. 46, March 8, 1899, as amended by Law No. 161, 1962.
6/ Law No. 231, July 15, 1952, as amended by Law No. 96, 1971.-2-

Law. 4/  Although the above two laws do not expressly deny to aliens the 
right to engage in the marine transportation business, Article 42-3 of 
the latter Law provides that the "provisions of this Law, except those
of Article 28 to 31 inclusive [concerning antitrust and fair trade], shall 
not apply to the case where the marine transportation business is operated
by anyone other than a person who has the Japanese nationality or a 
juridical person or other association established under Japanese laws 
and ordinances."

However, cabotage by aliens is expressly prohibited under the 
Ship Law: 5/

None other than Japanese ships shall call at any port 
not open to foreign commerce and navigation or shall transport 
goods or passengers between Japanese ports, except in cases 
where otherwise provided by law or treaty, where she is going 
to avoid ship-wreck or capture, or where she has obtained 
permission of the competent Minister. 

Thus, with certain exceptions, no alien is permitted to engage 
in transportation of freight shipments between Japanese ports. Nevertheless, 
there is no provision expressly closing the transportation business 
to aliens using overseas routes beyond Japanese ports.

III. Air Transportation

Under the Civil Aeronautics Law, 6/ an alien or a foreign corporation

__________________________

4/ Law No. 187, June 1, 1949, as amended by Law No. 130, 1971.
5/ Law No. 46, March 8, 1899, as amended by Law No. 161, 1962.
6/ Law No. 231, July 15, 1952, as amended by Law No. 96, 1971.-2-

Law. 4/  Although the above two laws do not expressly deny to aliens the 
right to engage in the marine transportation business, Article 42-3 of 
the latter Law provides that the "provisions of this Law, except those
of Article 28 to 31 inclusive [concerning antitrust and fair trade], shall 
not apply to the case where the marine transportation business is operated
by anyone other than a person who has the Japanese nationality or a 
juridical person or other association established under Japanese laws 
and ordinances."

However, cabotage by aliens is expressly prohibited under the 
Ship Law: 5/

None other than Japanese ships shall call at any port 
not open to foreign commerce and navigation or shall transport 
goods or passengers between Japanese ports, except in cases 
where otherwise provided by law or treaty, where she is going 
to avoid ship-wreck or capture, or where she has obtained 
permission of the competent Minister. 

Thus, with certain exceptions, no alien is permitted to engage 
in transportation of freight shipments between Japanese ports. Nevertheless, 
there is no provision expressly closing the transportation business 
to aliens using overseas routes beyond Japanese ports.

III. Air Transportation

Under the Civil Aeronautics Law, 6/ an alien or a foreign corporation

__________________________

4/ Law No. 187, June 1, 1949, as amended by Law No. 130, 1971.
5/ Law No. 46, March 8, 1899, as amended by Law No. 161, 1962.
6/ Law No. 231, July 15, 1952, as amended by Law No. 96, 1971.-3-

intending to engage in scheduled or non-scheduled air transport business 
within the territory of Japan or in the international freight business 
must obtain a license from the Minister of Transportation. Pertinent 
provisions of the above Law are as follows:

Article 127. No aircraft having the nationality of 
any foreign state (excepting any aircraft which is used for 
the business of any foreign international transport enterprise 
and any aircraft which is used for transportation by any person 
why has obtained permission under Article 130-2) shall be used 
for navigation inside Japan. However, the same 
shall not apply in cases where permitted by the Minister of 
Transportation.

Article 129. ...a person referred to in any item of 
paragraph 1 of Article 4, may upon receiving permission 
from the Minister of Transportation, run a business to transport 
passengers or freight on any flight referred to in Article 126, 
paragraph 1 (including the one between points within Japan which 
is performed in continuance thereof) for remuneration on demand 
of other persons.

Article 130-2.  Any aircraft having the nationality of any 
foreign state (excepting any aircraft which is used for the 
enterprise of any foreign international air transport enterprise) 
shall obtain permission from the Minister of Transportation, 
when it engages in the transportation for remuneration of 
passengers or freight, for taking off or landing inside Japan 
by a flight referred to in Article 126, paragraph 1, item 1 
(including a flight between points within Japan which is made 
in continuance thereof) or by a flight referred to in item 2 
of the same paragraph (including a flight between points within 
Japan which is made in continuance thereof).

Article 4.  1. An aircraft owned by any one of the following 
persons shall not be eligible for registration:

(1) Any person who does not have Japanese nationality;

(2) Any foreign state or public entity or its equivalent 
in any foreign state;

(3) Any juridical person or body established in accordance 
within the laws and ordinances of any foreign state;-3-

intending to engage in scheduled or non-scheduled air transport business 
within the territory of Japan or in the international freight business 
must obtain a license from the Minister of Transportation. Pertinent 
provisions of the above Law are as follows:

Article 127. No aircraft having the nationality of 
any foreign state (excepting any aircraft which is used for 
the business of any foreign international transport enterprise 
and any aircraft which is used for transportation by any person 
why has obtained permission under Article 130-2) shall be used 
for navigation inside Japan. However, the same 
shall not apply in cases where permitted by the Minister of 
Transportation.

Article 129. ...a person referred to in any item of 
paragraph 1 of Article 4, may upon receiving permission 
from the Minister of Transportation, run a business to transport 
passengers or freight on any flight referred to in Article 126, 
paragraph 1 (including the one between points within Japan which 
is performed in continuance thereof) for remuneration on demand 
of other persons.

Article 130-2.  Any aircraft having the nationality of any 
foreign state (excepting any aircraft which is used for the 
enterprise of any foreign international air transport enterprise) 
shall obtain permission from the Minister of Transportation, 
when it engages in the transportation for remuneration of 
passengers or freight, for taking off or landing inside Japan 
by a flight referred to in Article 126, paragraph 1, item 1 
(including a flight between points within Japan which is made 
in continuance thereof) or by a flight referred to in item 2 
of the same paragraph (including a flight between points within 
Japan which is made in continuance thereof).

Article 4.  1. An aircraft owned by any one of the following 
persons shall not be eligible for registration:

(1) Any person who does not have Japanese nationality;

(2) Any foreign state or public entity or its equivalent 
in any foreign state;

(3) Any juridical person or body established in accordance 
within the laws and ordinances of any foreign state;-3-

intending to engage in scheduled or non-scheduled air transport business 
within the territory of Japan or in the international freight business 
must obtain a license from the Minister of Transportation. Pertinent 
provisions of the above Law are as follows:

Article 127. No aircraft having the nationality of 
any foreign state (excepting any aircraft which is used for 
the business of any foreign international transport enterprise 
and any aircraft which is used for transportation by any person 
why has obtained permission under Article 130-2) shall be used 
for navigation inside Japan. However, the same 
shall not apply in cases where permitted by the Minister of 
Transportation.

Article 129. ...a person referred to in any item of 
paragraph 1 of Article 4, may upon receiving permission 
from the Minister of Transportation, run a business to transport 
passengers or freight on any flight referred to in Article 126, 
paragraph 1 (including the one between points within Japan which 
is performed in continuance thereof) for remuneration on demand 
of other persons.

Article 130-2.  Any aircraft having the nationality of any 
foreign state (excepting any aircraft which is used for the 
enterprise of any foreign international air transport enterprise) 
shall obtain permission from the Minister of Transportation, 
when it engages in the transportation for remuneration of 
passengers or freight, for taking off or landing inside Japan 
by a flight referred to in Article 126, paragraph 1, item 1 
(including a flight between points within Japan which is made 
in continuance thereof) or by a flight referred to in item 2 
of the same paragraph (including a flight between points within 
Japan which is made in continuance thereof).

Article 4.  1. An aircraft owned by any one of the following 
persons shall not be eligible for registration:

(1) Any person who does not have Japanese nationality;

(2) Any foreign state or public entity or its equivalent 
in any foreign state;

(3) Any juridical person or body established in accordance 
within the laws and ordinances of any foreign state;-3-

intending to engage in scheduled or non-scheduled air transport business 
within the territory of Japan or in the international freight business 
must obtain a license from the Minister of Transportation. Pertinent 
provisions of the above Law are as follows:

Article 127. No aircraft having the nationality of 
any foreign state (excepting any aircraft which is used for 
the business of any foreign international transport enterprise 
and any aircraft which is used for transportation by any person 
why has obtained permission under Article 130-2) shall be used 
for navigation inside Japan. However, the same 
shall not apply in cases where permitted by the Minister of 
Transportation.

Article 129. ...a person referred to in any item of 
paragraph 1 of Article 4, may upon receiving permission 
from the Minister of Transportation, run a business to transport 
passengers or freight on any flight referred to in Article 126, 
paragraph 1 (including the one between points within Japan which 
is performed in continuance thereof) for remuneration on demand 
of other persons.

Article 130-2.  Any aircraft having the nationality of any 
foreign state (excepting any aircraft which is used for the 
enterprise of any foreign international air transport enterprise) 
shall obtain permission from the Minister of Transportation, 
when it engages in the transportation for remuneration of 
passengers or freight, for taking off or landing inside Japan 
by a flight referred to in Article 126, paragraph 1, item 1 
(including a flight between points within Japan which is made 
in continuance thereof) or by a flight referred to in item 2 
of the same paragraph (including a flight between points within 
Japan which is made in continuance thereof).

Article 4.  1. An aircraft owned by any one of the following 
persons shall not be eligible for registration:

(1) Any person who does not have Japanese nationality;

(2) Any foreign state or public entity or its equivalent 
in any foreign state;

(3) Any juridical person or body established in accordance 
within the laws and ordinances of any foreign state;-3-

intending to engage in scheduled or non-scheduled air transport business 
within the territory of Japan or in the international freight business 
must obtain a license from the Minister of Transportation. Pertinent 
provisions of the above Law are as follows:

Article 127. No aircraft having the nationality of 
any foreign state (excepting any aircraft which is used for 
the business of any foreign international transport enterprise 
and any aircraft which is used for transportation by any person 
why has obtained permission under Article 130-2) shall be used 
for navigation inside Japan. However, the same 
shall not apply in cases where permitted by the Minister of 
Transportation.

Article 129. ...a person referred to in any item of 
paragraph 1 of Article 4, may upon receiving permission 
from the Minister of Transportation, run a business to transport 
passengers or freight on any flight referred to in Article 126, 
paragraph 1 (including the one between points within Japan which 
is performed in continuance thereof) for remuneration on demand 
of other persons.

Article 130-2.  Any aircraft having the nationality of any 
foreign state (excepting any aircraft which is used for the 
enterprise of any foreign international air transport enterprise) 
shall obtain permission from the Minister of Transportation, 
when it engages in the transportation for remuneration of 
passengers or freight, for taking off or landing inside Japan 
by a flight referred to in Article 126, paragraph 1, item 1 
(including a flight between points within Japan which is made 
in continuance thereof) or by a flight referred to in item 2 
of the same paragraph (including a flight between points within 
Japan which is made in continuance thereof).

Article 4.  1. An aircraft owned by any one of the following 
persons shall not be eligible for registration:

(1) Any person who does not have Japanese nationality;

(2) Any foreign state or public entity or its equivalent 
in any foreign state;

(3) Any juridical person or body established in accordance 
within the laws and ordinances of any foreign state;-4-

(4) Any juridical person of which the representative is 
any one of those mentioned in the preceding items or 
of which more than one-third of the officers are such 
persons or more than one-third of voting interests is 
owned by such persons.

2. [Omitted.]

When aliens hold more than one-third of a domestic corporation's 
voting rights or offices, the corporation may be deemed to be foreign 
under Article 4, paragraph 1, item (4) of the above law.
----------------------
Prepared by
Dr. Sung Yoon Cho
Senior Legal Specialist
Far Eastern Law Division
Law Library, Library of Congress
Washington, D. C. 20540
December 1973

SYC: kah
12/14/73-4-

(4) Any juridical person of which the representative is 
any one of those mentioned in the preceding items or 
of which more than one-third of the officers are such 
persons or more than one-third of voting interests is 
owned by such persons.

2. [Omitted.]

When aliens hold more than one-third of a domestic corporation's 
voting rights or offices, the corporation may be deemed to be foreign 
under Article 4, paragraph 1, item (4) of the above law.
----------------------
Prepared by
Dr. Sung Yoon Cho
Senior Legal Specialist
Far Eastern Law Division
Law Library, Library of Congress
Washington, D. C. 20540
December 1973

SYC: kah
12/14/73-4-

(4) Any juridical person of which the representative is 
any one of those mentioned in the preceding items or 
of which more than one-third of the officers are such 
persons or more than one-third of voting interests is 
owned by such persons.

2. [Omitted.]

When aliens hold more than one-third of a domestic corporation's 
voting rights or offices, the corporation may be deemed to be foreign 
under Article 4, paragraph 1, item (4) of the above law.
----------------------
Prepared by
Dr. Sung Yoon Cho
Senior Legal Specialist
Far Eastern Law Division
Law Library, Library of Congress
Washington, D. C. 20540
December 1973

SYC: kah
12/14/73-4-

(4) Any juridical person of which the representative is 
any one of those mentioned in the preceding items or 
of which more than one-third of the officers are such 
persons or more than one-third of voting interests is 
owned by such persons.

2. [Omitted.]

When aliens hold more than one-third of a domestic corporation's 
voting rights or offices, the corporation may be deemed to be foreign 
under Article 4, paragraph 1, item (4) of the above law.
----------------------
Prepared by
Dr. Sung Yoon Cho
Senior Legal Specialist
Far Eastern Law Division
Law Library, Library of Congress
Washington, D. C. 20540
December 1973

SYC: kah
12/14/73-4-

(4) Any juridical person of which the representative is 
any one of those mentioned in the preceding items or 
of which more than one-third of the officers are such 
persons or more than one-third of voting interests is 
owned by such persons.

2. [Omitted.]

When aliens hold more than one-third of a domestic corporation's 
voting rights or offices, the corporation may be deemed to be foreign 
under Article 4, paragraph 1, item (4) of the above law.
----------------------
Prepared by
Dr. Sung Yoon Cho
Senior Legal Specialist
Far Eastern Law Division
Law Library, Library of Congress
Washington, D. C. 20540
December 1973

SYC: kah
12/14/73