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Japan Wood Products Agreement (1990)

[letterhead]

EMBASSY OF JAPAN

WASHINGTON, D. C.

June 15, 1990

Dear Ambassador Hills:

I am pleased to inform you that the Government of Japan has decided to take measures to achieve substantial improvement in market access for wood products in Japan. These measures are set forth in the Attachment to this letter. In some instances, the implementation of these measures will require Diet approval.

With the implementation of the measures outlined in the Attachment, it is the intent of our Government that the opportunities for the importation and use of wood products in Japan will be facilitated and improved. Moreover, these measures will be implemented in a manner that allows for the practical and economic construction of wood buildings.

In addition, as described in the Attachment, my Government has decided to establish a process to examine the possibilities for further modification of the rules and regulations governing wood construction, while maintaining high levels of safety, with the aim of expanding the use of wood products in Japan.

We look forward to working with your Government to identify products for which harmonization of standards would facilitate the trade and use of forest products in the future, in order to ensure that product standard issues are handled in such a manner as to facilitate trade in the future.

We also look forward to working with you in the Wood Products Subcommittee and the technical committees that will be established, as described in the Attachment, to oversee the implementation of these measures and to seek to resolve any disputes that may arise.

Sincerely yours,

[signature]

Ryohei Murata

Ambassador of Japan

The Honorable Carla A. Hills

United States Trade Representatives

Office of the U.S.T.R.

Washington, D.C. 20506

[letterhead]

THE UNITED STATES TRADE REPRESENTATIVE

Executive Office of the President

Washington, D.C. 20506

JUN 15 1990 [rubber stamped date]

His Excellency Ryohei Murata

Ambassador

Embassy of Japan

2520 Massachusetts Avenue, NW.

Washington, D.C. 20008

Dear Ambassador Murata:

I am pleased to receive your letter of today's date concerning the measures that the Government of Japan has decided to take in order to achieve substantial improvement in market access for wood products in Japan. I welcome your Government's commitment to take these measures, as detailed in the Attachment to your letter.

We welcome the measures that your Government has decided to take to increase the opportunities for wood construction in Japan and your assurances that the measures will be implemented in such a way as to allow for the practical and economic construction of wood buildings. We believe that these measures will be of mutual benefit to our two countries.

We also welcome Japan's establishment of a process that will provide the basis for further modification of the rules and regulations governing wood construction, while maintaining high levels of safety, with the aim of expanding the use of wood products in Japan.

We appreciate your Government's decision to take a positive stance in the Uruguay Round Tariff Negotiations on wood products and look forward to achieving major results in that forum.

We will work closely with your Government to identify products for which harmonization of standards would facilitate the trade and use of forest products in the future and to ensure that product standard issues are handled in such a manner as to facilitate trade.

We also look forward to working with you in the Wood Products Subcommittee and the technical committees that will be established, as described in the Attachment, to oversee the implementation of these measures and to seek to resolve any dispute that may arise. We will advise you of the selection of our public and private sector representatives for these committees in the near future.

Sincerely,

[signature]

Carla A. Hills

MEASURES TO BE TAKEN BY THE GOVERNMENT OF JAPAN RELATING TO WOOD PRODUCTS (MEASURES)

I. TARIFFS

1. The Government of Japan (GOJ) has decided to take a positive stance in the Uruguay Round Negotiations with respect to the reduction, or as appropriate, elimination of tariffs on the wood Products specified in Annex A, which is attached hereto.

2. Following commitments made in the Uruguay Round Mid-Term Review of April 1989, and without prejudice to the basic negotiating methods described in that commitment, the GOJ:

a. Will take necessary measures, including seeking Diet approval, to reduce overall tariff rates on the wood products specified in Annex A from current applied rates by a target amount at least as ambitious as that achieved by the formula participants in the Tokyo Round as part of the implementation of the results of the Uruguay Round Negotiations;

b. Recognizes the importance, as stated in the Uruguay Round Mid-Term Review of April 1989, of reducing or eliminating high tariffs, tariff peaks, and tariff escalation, and thereby is of the view that:

(1) the implementation of Uruguay Round Negotiations should ultimately result in the achievement of low tariffs on the wood products specified in Annex A, and

(2) the initial reductions in high tariffs (rates 8 percent and above)on those products specified in Annex A will be greater than subsequent staged reductions in order to achieve immediate substantial improvement in market access.

c. Intends to work closely with the United States Government (USG) and other interested parties on tariff issues in the Uruguay Round and to negotiate with the USG and other interested parties as part of the Uruguay Round Negotiations the level and staging of tariff reductions on wood products specified in Annex A in accordance with the above guidelines.

II. BUILDING STANDARDS

A. Definition: for purposes of the "Measures to Be Taken by the Government of Japan Relating to Wood Products" (Measures), the term "building standards" means the Building Standards Law, as well as relevant cabinet orders, enforcement regulations and notifications. The legal requirements under the Building Standards Law encompassed by this definition are sufficient to allow the practical and effective implementation of the measures to be taken under Part II and Annex B of the Measures.

B. Performance Requirements

1. It is the policy of the GOJ that, in principle, building standards and requirements should be performance-based and that, where the performance of wood products or wooden building systems is equivalent to that stipulated by these standards and requirements, their use should be permitted.

2. Where only prescriptive building standards are now stipulated, the GOJ will add performance-based standards to the maximum extent possible. In particular, the GOJ notes its intention to introduce into its building standards new testing methods for acceptance of wood fire doors as well as new structural calculation methods for wood frame construction, as detailed in Annex B, which is attached hereto. These new standards will be put into effect in June 1990 for fire doors and by the end of Fiscal Year 1991 for new structural calculation methods for wood frame construction.

3. The GOJ will continue and strengthen its program, directed by the Ministry of Construction (MOC), of research and development to expand the use of wood products and modern building systems in construction. On the basis of current data and information available to it and in accordance with new technical developments, the GOJ will amend promptly its building standards and requirements so as to permit the use of proven wood products and safe building systems.

4. The specific actions now being implemented or contemplated as well as the objectives are outlined in Annex B.

5. With the objectives of promoting the use of proven wood products and safe building systems, and of exchanging views and technical information on building standards, the GOJ will establish, in cooperation with the USG and/or other interested countries, a Building Experts Committee, including representatives of the public sector and private technical experts of Japan, the United States and/or other interested countries. This Committee will hold its first meeting as soon as possible in 1990.

6. With a view towards further improving information about the building standards, rules and regulations and providing a sound basis for the deliberations of the Building Experts Committee, the GOJ is providing the information outlined in Annex F, which is attached hereto.

C. Expeditious Recognition of New Products and Building Systems in the Building Standards and Expeditious Incorporation of JAS and JIS Standards into the Building Standards

1. It is the policy of the GOJ that the recognition of new products and systems and the incorporation of appropriate products coming under Japanese Agricultural Standards (JAS) and Japanese Industrial Standards(JIS) into the building standards should proceed in an expeditious, transparent and predictable manner. In accordance with the "Action Program for Improved Market Access" formulated in July 1985, technical appraisal regarding safety and workability should be completed and new products and systems recognized in the building standards within a three-month period, unless there are exceptional circumstances. The GOJ will seek to incorporate appropriate products coming under JAS or JIS standards into the building standards within a six-month Period.

2. Foreign test data will be accepted whenever possible, consistent with the GATT Agreement on Technical Barriers to Trade, in considering the recognition of new products and systems. In this regard, the GOJ draws attention to the 1987 "Guidelines on the Acceptance of Overseas Inspection Data."

3. The GOJ will further take the actions specified in Annex C, which is attached hereto, concerning the incorporation of JAS and JIS standards into the building standards.

D. Open and Expeditious Certification

1. The GOJ is of the view that, in general, open certification, or general approval of new building materials and systems, is desirable and that closed certification, or the approval of new products or systems only for specific applications or by specified firms, should be avoided except where the new products or systems are of such a technologically unique or complex nature as to warrant such treatment.

2. The GOJ is also of the view that there should be expeditious acceptance of test results and data compiled by the relevant bodies of other countries in the building standards' approval and certification system, even when test methods differ, provided that the methods employed provide sufficient means to determine conformity with the relevant technical regulations or standards in accordance with the 1987 "Guidelines on the Acceptance of Overseas Inspection Data."

3. The GOJ has made efforts to streamline its procedures for approval and in this regard draws attention to the 1987 "Guidelines on the Acceptance of Overseas Inspection Data" and recent work on the categorization and public notification of data necessary for technical appraisal. The GOJ also notes in this regard that, unless there are exceptional circumstances, such approval is effective on a nationwide basis.

4. The GOJ will make further efforts to expedite open approval and certification by taking the actions set forth in Annex D, which is attached hereto, and, consistent with its commitments to provide improved information services, briefing sessions and explanatory information on the approval process to foreign companies upon request.

E. Implementation

1. The GOJ will take all necessary and appropriate actions to ensure nationwide application of all the modifications to the building standards required to implement the actions of the GOJ set forth in this Part, as well as in Annexes B, C and D of the Measures.

2. The GOJ will cooperate with the USG and/or other interested parties to resolve disputes and problems related to the recognition, incorporation, approval and certification of wood products or building systems as quickly as possible and in a manner consistent with the Measures. It is anticipated that disputes will be resolved within three months upon receipt of sufficient data from the parties concerned.

3. The GOJ will inform building officials, local government officials and other appropriate officials, as well as the construction industry, in an effective and timely manner of all changes in the building standards and other requirements set forth in the Measures.

III. JAPANESE AGRICULTURAL STANDARDS

The GOJ will take the following measures with respect to the Japanese Agricultural Standards (JAS).

A. Simplification of Certification Process

1. In order to simplify and expedite the JAS certification process, the GOJ will eliminate, reduce and simplify the documentation required for JAS mill certification. Through the actions described in Annex E, which is attached hereto, with respect to the documentation requirements in the certification of a mill producing structural plywood, the GOJ will implement the following, except in extenuating circumstances:

a. The documentation required for JAS mill applications will be reduced by approximately one-half, and the time period for the GOJ to conduct an on-site inspection and to review and approve the application will be shortened to four months for applications submitted directly to Registered Grading Organizations (RGO's) (only two or three months will be required in cases in which no problems are encountered).

b. When the Foreign Testing Organization (FTO) system is used, the time period, referred to in sub-paragraph (a) above, will be no more than two working weeks.

c. For the approval of new plants, the time period for the GOJ to conduct an on-site inspection and to review and approve the application will be shortened to five months, except when the FTO system is used the time period will be no more than two weeks, and in cases where no problems are encountered, the time period will be shortened to two to three months.

2. In the certification of mills producing products other than structural plywood, the GOJ will take actions similar to those described in Paragraph (1) above, as well as those described in the documentation requirements detailed in Annex E with respect to structural plywood.

3. Under the FTO system, the provision of quality control facilities, equipment and personnel is the responsibility of the FTO, and not of the applicant mill, where there is a quality control contract between the FTO and the applicant mill. In seeking JAS certification, an applicant mill will not be required to provide documentation with respect to the quality control requirements.

B. Adoption and Revision of JAS Standards

1. The GOJ will revise the JAS standards:

a. to include the alternative method of the Nail Shear Test and to incorporate stress values in the structural panels standard; and

b. to recognize Machine Stress Ratings (MSR) and stress values for lumber uses including for use in the manufacture of laminated lumber products.

2. In revising the standards in Paragraph (1) above, the GOJ

will:

a. acknowledge and utilize the extensive experience and technology available in the United States and other countries to the maximum extent possible; and

b. make the maximum use of the data on OSB stress values and the stress values for MSR lumber provided by U.S. and/or other foreign entities.

3. Based upon recognition of the impracticality of retesting MSR lumber at the time of importation, the GOJ, after assessment of and rendering a judgment on the quality control programs of certified MSR grading organizations in the United States and other countries, will as a matter of principle recognize the certified stress values referred to in Paragraph (2)(b) above.

4. Foreign technical experts will continue to participate in the development of JAS standards. Foreign test data will continue to be utilized whenever possible, consistent with the guidelines established by the GOJ in "Improvement of Japanese Standards and Certification Systems."

5. The preparation of the final draft of the revised standards, referred to in Paragraph (1) above and the necessary domestic procedures, including the activities of the Research Committee for Agricultural and Forestry Standards, will be completed by March 31, 1991 and the revised standards will be put into effect by July 1, 1991.

C. Equivalency in Testing

1. It is the view of the GOJ that, even where test methodologies and other requirements differ from those set forth in the JAS standards, foreign quality control methodologies can provide equivalent guarantees of a product's quality and safety.

2. The GOJ will judge the equivalence of a foreign quality control methodology on the basis of its analysis of performance and test data provided through a parallel testing program.

3. Upon receipt of a request by a Foreign Testing Organization or other entity, which intends to seek approval of a parallel testing program, the GOJ will, in no more than 60 days, except in very complicated cases, notify the applicant of all the parameters of the testing program that will be required (e.g., the duration of the testing) and all other necessary data that must be submitted with the application. When this data has been submitted, no other information will be required of the applicant.

4. Within six months of submission of the necessary test data, the Research Committee for Agricultural and Forestry Standards will make a judgment that a foreign testing method provides equivalent results. As soon as possible but within 30 working days, after the Research Committee has made an affirmative equivalency judgment, the GOJ will make an official proclamation in the KANPO of the acceptance, on a provisional basis, of the foreign testing methodology.

5. Thirty (30) days after the equivalency judgment is published in the KANPO, and prior to GATT notification, the GOJ will begin to accept the foreign test results as equivalent to JAS test results. These test results will fulfill the JAS requirements, in accordance with relevant laws and regulations in Japan.

6. It is understood that as a result of the GATT notification process, the GOJ may be required to alter its provisional acceptance of the foreign testing method.

D. JAS Technical Committee

1. The GOJ, in cooperation with the USG and/or other interested countries, will establish a JAS Technical Committee, composed of representatives of the governments and organizations participating in the JAS system and, as it is deemed necessary, private sector technical experts for the purpose of assisting that government.

2. The initial meeting of the Committee will be held before June 30, 1990, and approximately once every year thereafter, with more frequent meetings held when necessary.

3. The purposes of the Committee will be to:

a. hold regular meetings to exchange views and deepen understanding of JAS product standards and the product standards of other countries and such other issues as may be agreed upon;

b. identify products where harmonization of standards would facilitate trade in forest products;

c. examine and make recommendations with respect to the harmonization of standards, in particular with respect to the future development of common standards and testing methodologies; and

d. prepare reports on progress in the implementation of the actions set forth in section B of this Part and in Annex E.

IV. CLASSIFICATION OF LAMINATED WOOD PRODUCTS

1. This Part of the Measures sets forth the policies and actions of the GOJ regarding the appropriate classification of laminated wood products, including, but not limited to, glue laminated (glulam) arches, headers and beams; laminated posts; laminated veneer lumber (LVL); laminated veneer lumber joists and trusses; and tongued and grooved glue laminated lumber. Where such laminated wood products meet the criteria set forth below, the GOJ has decided to classify these products under Harmonized Tariff Schedule subheading 4418.90 (3.9 percent duty), as of June 1, 1990.

2. The GOJ has decided to classify the following laminated wood products under Harmonized Tariff Schedule subheading 4418.90 (3.9 percent duty), as of June 1, 1990.

a. Glulam

(1) Structural 1/ glue-laminated lumber that has a minimum cross section width of not less than 3 inches (76 mm) and a depth (a multiple of the lamination thicknesses) of not less than 5 1/2 inches (140 mm) and that fulfills any one of the conditions

described below at the time of importation:

(i) processed (curved, camber, tenons, mortises) to be a particular shape for beams or arches;

(ii) has bolt holes in appropriate locations:

(iii) planed or sanded, and chamfered; or

(iv) with average lamination thicknesses of not less than 30 mm.

(2) Glue laminated lumber that has a cross section width of less than 3 inches (76 mm) and a depth of less than 5 1/2 inches (140 mm) or across section greater than or equal to that size, but which does not fulfill any of the four conditions set forth in sub-paragraph (a)(l)above, is classified as structural glue laminated lumber when the shipment is accompanied by technical materials 2/ or hardware 3/ showing that the products are intended to be used for structural applications 4/ in the construction of any kind of building, etc. without significant further processing 5/.

b. Laminated Veneer Lumber

Structural laminated veneer lumber (LVL) which fulfills any one of the conditions described below at the time of importation:

(1) assembled products (e.g., beams or joists, combination beams with steel products, and trusses);

(2) products in the form of recognizable unassembled pieces (e.g., prepared with tenons, mortises, dovetails or similar joints for assembly);

(3) pieces processed to a particular shape (e.g., curved, camber) for beams or arches; or

(4) products having a cross section width (or thickness which is a multiple of the thickness of the laminations) of not less than 1-1/2 inches (38 mm) and a depth of not less than 3-1/2 inches (89 mm) and accompanied by technical material 2/ or hardware 3/ showing that it is intended to be used for structural applications 4/ in the construction of any kind of building, etc. without significant further processing 5/.

c. Tongued and Grooved Glue-laminated Lumber

Tongued and grooved glue-laminated lumber (so-called "decking") which has a width of not less than 5-1/4 inches (133 mm) and a depth (a multiple of the lamination thicknesses) of not less than 2-3/16 inches (56 mm), is designed for use as flooring, roofing, etc., and is not recognizable as glulam when assembled because it is used in flat panel form. Nevertheless, decking prepared with end-joints, such as tenons or mortises, for assembly is classified under Harmonized Tariff Schedule sub-heading 4418.90 (3.9 percent duty).

1/ The term "structural" as used herein is intended only to be descriptive and shall not imply the need to meet requirements in addition to those specified herein.

2/ The term "technical materials" include drawings or diagrams, standard specifications or similar technical manuals, and installation instructions.

3/ The term "hardware" includes hangers, metal plates or brackets which are appropriate in size and quality for the products involved.

4/ The term "structural applications" includes beams, arches, posts, headers, purlins, and other members, which are used in the main frame of any building.

5/ The term "significant further processing" refers only to resawing and overlaying, but not cutting to length or joining members together.

V. ESTABLISHMENT OF WOOD PRODUCTS SUBCOMMITTEE

A. Accomplishment of the Objectives of the Measures

1. The objectives of the Measures are to achieve substantial improvement in market access and to encourage the use of wood products in Japan.

2. With the implementation of the Measures, it is the intent of the GOJ that the use and importation of wood products and wood building systems will be facilitated and a framework established for addressing any relevant issues in the future.

3. Toward this end, the GOJ will cooperate with the USG and/or interested parties to resolve expeditiously any disputes or problems related to the building standards, JAS standards or tariff classifications in a manner consistent with the Measures.

B. Wood Products Subcommittee

1. For the purposes of overseeing the implementation of the policies, procedures and actions set forth in the Measures, resolving disputes and problems arising under it, and facilitating trade in wood products as well as the increased use of wood products, a Wood Products Subcommittee (Subcommittee) of the U.S.-Japan Trade Committee will be established.

a. The Subcommittee will be composed of senior officials of the GOJ and the USG and other appropriate government experts.

b. The Subcommittee will meet twice a year at or about the same time as the Trade Committee, and more frequently when requested.

2. The Subcommittee will review the actual implementation and operation of the policies, actions and procedures upon which the Measures are based, as well as the work of the technical committees established under the Measures (Building Experts Committee and JAS Technical Committee). When disputes arise with respect to the implementation of the Measures, the Subcommittee should seek to resolve them within six months.

3. The Subcommittee will endeavor to identify actions and areas of cooperation which will contribute to the achievement of the objectives of the Measures. If the Subcommittee identifies areas in which revisions are appropriate to achieve the objectives of the Measures, the GOJ will implement mutually acceptable revisions.

VI. SUBSIDIES

In order that the objectives of the Measures will not be undermined, it is the intention of the GOJ that any existing or future subsidies to manufacturers of forest products shall be consistent with the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade and, in that regard, will not nullify or impair benefits accruing to any GATT Contracting Party, directly or indirectly, under the GATT. In addition, such subsidies will be consistent with the OECD Statement on Positive Adjustment Policies of 1982.

ANNEX A

JAPANESE WOOD PRODUCTS TARIFFS

HS # Current

Sawn Wood

4407.10-110 8.0

4407.10-121 4.8

4407.10-210 8.0

4407.10-290 10.0

Veneer Sheets And Sheets for Plywood

4408 10-010 0

4408.10-021 5.0

4408.10-029 5.0

4408.90-410 5.0

4408.90-490 5.0

Wood Continuously Shaped along any of

its Edges or Faces

4409.10-100 7.5

4409 10-200 4.8

4409.10-310 8.0

4409.10-320 0

4409.20-190 7.5

4409.20-200 4.8

4409.20-320 0

4409.20-330 10.0

4409.20-340 0

Particleboard

4410.10-010 8.0

4410 10-020 10.0

Fiberboard

4411.11-000 5.2

4411.19-000 5.2

4411.21-000 3.5

4411.29-000 3.5

4411.31-000 3.5

4411.39-000 3.5

4411.91-000 3.5

4411.99-000 3.5

Plywood U. Panels and Similar Laminated Wood

4412.12-011 10.0

4412.12-019 15.0

4412.12-021 15.0

4412.12-022 10.0

4412.19-011 10.0

4412.19-019 15.0

4412.19-021 15.0

4412.19-022 10.0

4412.21-010 15.0

4412.21-090 20.0

4412.29-010 15.0

4412.29-090 20.0

4412.91-010 15.0

4412.91-090 20.0

4412.99-010 15.0

4412.99-090 20.0

Builders' Joinery and Carpentry of Wood

4418.30-000 3.9

4418.40-000 3.9

4418.50-000 5.8

4418.90-100 10.0

4418.90-221 3.9

4418.90-229 3.9

Other Articles of Wood

4421.90-099 5.8

ANNEX B

I. THE OBJECTIVES AND ACTIONS CONCERNING BUILDING STANDARDS

1. The GOJ acknowledges the importance of life safety, structural performance and fire control requirements in its building standards.

2. It is the policy of the GOJ that the use of wood products and wood building systems should be permitted where these products and systems provide levels of safety equivalent to or superior to those required of other building materials. It further recognizes that standards for safety are not fixed but vary in accordance with technological developments. In this regard, the GOJ recognizes that progress has been, and continues to be, made in the development of wood building systems providing the structural and life safety equivalent to other building systems.

3. It is the policy of the GOJ that building standards should be transparent, facilitate the introduction of new products and systems, protect safety and, to the maximum extent possible, be performance-based. Thus, the GOJ acknowledges that:

a. The Measures should not only resolve current disputes but establish a system that will alleviate potential problems that may arise in the future concerning the introduction of new products or systems into the building standards and facilitate the modification of existing building standards so as to permit the use of proven wood products and safe wood building systems.

b. In accordance with the Measures or after necessary technological study has been completed, the GOJ will continue to incorporate proven wood products and safe systems into its building standards and will actively make the modifications in its building standards necessary to accomplish these objectives and the actions specified in this Annex.

c. It is important that building standards regarding the use of wood products, systems and certification be clear, predictable and readily available to interested parties. To that end, the GOJ will improve the information services available to foreign entities as specified in this Annex.

d. Given the preference of the Japanese for wood housing and the cost competitiveness of such housing, wood construction in Japan is likely to increase significantly as a result of the Measures.

II. ACTIONS TO BE TAKEN BY THE GOJ IN FISCAL YEAR 1991

l. The GOJ will add, to the maximum extent possible, performance-based standards in those cases where only prescriptive building standards are stipulated, including but not limited to the following;

a. The GOJ will develop and implement new tests to allow the use of wood doors for all Type A and Type B applications (June, 1990);

b. The GOJ will incorporate the following changes in structural restrictions on wood frame construction where the safety has been confirmed through structural calculations:

(1) Increase the floor area surrounded by bearing wall lines from the current 60 square meters;

(2) Increase the distance between bearing wall lines from the current 12 meters or less;

(3) Increase the width of openings in bearing wall lines from the current 4 meters or less;

(4) Change the nailing requirements; and

(5) Ease the restrictions on the use of members of different structures.

2. The GOJ will revise the structural design manual including current basic data and guidelines for the structural design of large sectional wood buildings. The GOJ will allow large sectional wood buildings as quasi-fireproof buildings and permit the construction and use of the following:

a. In quasi-fire protection districts, urban areas and all other areas except fire protection districts, wood buildings of no more than three stories for offices and row houses or any combination thereof, with a total floor area of from 500 square meters to not more than 1500 square meters;

b. In areas outside of fire protection districts and quasi-fire protection districts, wood buildings of not more than two stories for commercial/retail (department stores, shops, etc.), offices or any combination thereof, with a total floor area of less than 500 square meters on the second floor, and an aggregate total floor area of not more than 3000 square meters for the entire building.

c. In areas outside of fire protection districts and quasi-fire protection districts, wood buildings of not more than two stories, such as hotels, dormitories, etc., with a total floor area of less than 300 square meters on the second floor and an aggregate total floor area of not more than 3000 square meters for the entire building.

3. The GOJ will make the necessary technical evaluation to permit wood interiors with ceilings of noncombustible or semi noncombustible materials.

4. The GOJ will grant general approvals for new building materials or building elements which do not require unique and/or complex technology and are accompanied by appropriate manuals.

5. The GOJ will allow the construction of restaurants, shops, club houses as well as cottages of log construction by making the following changes in its building standards (Spring, 1990):

a. The restrictions on total floor area will be modified to increase the maximum allowable area from the current 150 square meters to 300 square meters. The restrictions on height will be increased from a maximum height of 7 meters to 8.5 meters.

b. The restrictions on the sectional area of logs constituting bearing walls will be revised to increase the current limit of between 120 and 700 square centimeters to between 120 and 1400 square centimeters.

c. The limit on the height of bearing walls will be changed from no more than 3.2 meters to no more than 4.0 meters.

d. The limitation on the width (horizontal distance) of bearing walls will be eased from more than 1 meter to more than 0.3xH (H = height) meters.

e. The limit on the distance between bearing wall lines will be increased from 6 meters or less to 8 meters or less and the limit on the floor area surrounded by bearing wall lines will be increased from 30 square meters or less to 40 square meters or less when the safety of the structure has been confirmed by structural calculations or experimentation.

f. The requirement for the number of dowels will be revised to take into account the diameter of the dowels used.

6. The GOJ will allow the construction of three-story, multifamily wood housing and commercial and mixed use wood buildings, as specified in sub-paragraph (f) below, in areas outside of fire protection districts and quasi-fire protection districts when the following conditions, which shall be applied in such a manner as to allow the practical and economic construction of such buildings while not reducing the safety

level, are met:

a. Setbacks from the boundary of the adjacent lot are 3 meters (gable side) and 4 meters (front and back);

b. Buildings may be from 500 up to 1000 square meters in size;

c. Main structural components, such as walls, floors, ceilings and roofs meet the one-hour fire test specified in Paragraph 8 of this Part of the Annex;

d. Evacuation facilities enable residents to exit in two or more directions:

e. When building sections are separated by a fireproof system, using non-combustible material of a width of 3 meters, each section shall be treated as a separate building for purposes of calculating the permissible building area; and

f. The uses of three-story, multi-family wood housing and commercial and mixed use wood buildings are the following:

(1) The first and second floors can be used in various ways, such as for offices, stores, apartments, commercial/retail establishments (including both goods and services), offices such as for lawyers, doctors and other professionals, and restaurants: and

(2) The third floor can only be used for offices and apartments.

7. The GOJ will allow fire-preventive buildings of wood frame construction as quasi-fireproof buildings and permit the construction and use of the buildings specified below. Main structures of these buildings, such as walls, floors, ceilings and roofs must meet a one-hour fire test as specified in Paragraph 8 of this Part of the Annex.

a. In quasi-fire protection districts, urban areas and all other areas except fire protection districts, wood buildings of no more than three stories for offices and row houses or any combination thereof, with a total floor area of from 500 square meters to not more than 1500 square meters;

b. In areas outside of fire protection districts and quasi-fire protection districts, wood buildings of not more than two stories for commercial/retail (department stores, shops, etc.) or office use or any combination thereof, with a total floor area of less than 500 square meters on the second floor, and an aggregate total floor area of not more than 3000 square meters for the entire building.

c. In areas outside of fire protection districts and quasi-fire protection districts, wood buildings of not more than two stories, such as hotels, dormitories, etc., with a total floor area of less than 300 square meters on the second floor and an aggregate total floor area of not more than 3000 square meters for the entire building.

8. The GOJ will conduct the necessary technical review to establish and put into operation a new fire test methodology and criteria similar to that of ISO Test 834. The test criteria and methodology will be such as to permit the use of wood/gypsum systems which meet the one-hour fire rating set forth in ISO Test 834.

9. The GOJ will formulate standards permitting use of wood for external walls of fireproof and quasi-fireproof buildings in areas outside of fire protection districts and quasi-fire protection districts as long as such construction poses no obstacle to fire preventive performance.

10. Following submission of test data and documents on structural quality control systems, the MOC will grant approval to the allowable unit stresses for species of lumber; and for this purpose the MOC will recognize the lumber bearing applicants' grade marks. At the earliest possible date, the MOC will incorporate these unit stresses into the building standards.

11. The GOJ will upgrade the information services provided by the MOC. These include the establishment of a contact point for foreign entities in the MOC and the establishment of an International Department within the Building Center of Japan to provide information in English on approval systems, as well as the provision of briefing sessions for foreign entities on the building standards and approval systems. The GOJ will make every effort to ensure that foreign firms are aware of the availability of these services.

12. The GOJ will revise the restrictions on height and eave height for wood buildings described in Paragraph 6 of this Part of the Annex, and for row house complexes which meet the conditions specified in that Paragraph, to provide for the following:

a. An eave height of 11 meters; and

b. A height of 15 meters. However, provision must be made for increasing the allowable height of the building to maximize the habitable space and to permit economic and practical construction in those cases where the necessary pitch of the roof and the dimensions (length and width) of the building are such as to render the 15 meter height limitation impractical.

III. ACTIONS TO BE TAKEN BY THE GOJ IN FISCAL YEAR 1993

1. As provided for in Paragraph 6 of Part II of this Annex, the GOJ will allow the construction of three-story, multi-family wood housing and certain commercial and mixed use buildings, as specified in subparagraph (f) below, in areas outside of fire protection districts and quasi-fire protection districts with the following modifications in the building standards, which shall be applied in a manner to allow the practical and economic construction of such buildings without reducing the safety level:

a. Setbacks from the boundary of the adjacent lot are 3 meters (gable side) and 4 meters (front and back):

b. The allowable size of the building will be increased substantially above 1000 square meters, but not more than 3000 square meters;

c. The fire test methodology and criteria referred to in Paragraph 8 of Part II of this Annex will be revised as appropriate. However, the criteria and methodology will be such as to permit the construction and use of wood/gypsum systems which meet the one-hour fire rating set forth in ISO Test 834:

d. Main structural components, such as walls, floors, ceilings and roofs can meet the one-hour fire test specified in sub-paragraph (c) above; and

e. The GOJ will develop alternative rules for fire separation between building sections, in accordance with international practice, with an intention of reducing the size of the current fire separation structure and of permitting firewalls. Building sections separated by such walls shall be treated as separate buildings for purposes of calculating the permissible building area.

f. The uses of three-story, multi-family wood housing and commercial and mixed use wood buildings are the following:

(1) The first and second floors can be used in various ways, such as for offices, stores, apartments, commercial/retail establishments (including both goods and services), offices such as for lawyers, doctors and other professionals, and restaurants; and

(2) The third floor can only be used for offices and apartments.

2. Based on the experience gained from the implementation of the Measures, in particular the actions undertaken pursuant to this Annex, the GOJ will review its building standards concerning heights, area and other requirements so that the use of wood may be expanded.

IV. BUILDING EXPERTS COMMITTEE

l. The GOJ will, in cooperation with the USG and/or other interested countries, establish a Building Experts Committee, including representatives of the public sector and private technical experts in Japan, the United States and other countries.

2. The purposes of this Committee will be to:

a. hold regular meetings to exchange views and deepen the

understanding of each country's building standards and codes:

b. examine the building standards and building codes of each country with the objective of providing for the harmonization of standards, in particular with respect to the future development of common standards and testing methodologies; and

c. prepare annual reports on the progress of the implementation of the actions specified in this Annex.

ANNEX C

In order to provide for recognition of JAS and JIS standards in the building standards, the GOJ confirms the following:

1. Following evaluation of the test data provided by entities of the United States and/or other countries, the GOJ will recognize Oriented Strand Board and Waferboard (OSB/WB) which meets the JAS for structural panels as having equivalent performance characteristics to the same thickness of Class Two JAS plywood. It is recognized that the U.S. has already provided this data and that the GOJ has already initiated this process.

2. The GOJ will implement the following measures concerning the usage of OSB/WB:

a. OSB/WB will be added to the notification on multipliers of wood frame (the resistance coefficient for shear wall) for wooden buildings using Japanese post and beam construction;

b. OSB/WB will be permitted for use in bearing walls of conventional wooden buildings;

and

c. OSB/WB will be permitted for use in walls, floors and as sheathing on roofs in wood frame construction.

3. The GOJ will improve the test method for intumescent fire retardants.

4. Based on test data provided by the applicant, the GOJ will approve under the building standards the use of box nails, as well as other nails and fasteners, in wood construction in all appropriate applications, in accordance with their holding properties.

5. With respect to MSR, the GOJ will seek to incorporate MSR into the building standards within six months, following its recognition by JAS, and permit its use in laminated wood products, as well as in all lumber applications.

ANNEX D

OPEN APPROVAL FOR NEW SYSTEMS AND PRODUCTS

WHICH DEMONSTRATE ADEQUATE PERFORMANCE

l. The GOJ will grant general approvals for new building materials or building elements which do not require unique and/or complex technology for builders and are accompanied by appropriate manuals.

2. Should open approval not be possible immediately, approval of a new structural building material or system for a specific application should be granted within three months. Open approval of new non-structural materials or assemblies should be granted within three months.

3. Where a new product or system is so unique or technologically complex that the initial approval must be limited to specific applications, the GOJ will grant, unless there are exceptional circumstances general approval to the applicant as soon as results are obtained from no more than four applications of the product or system.

ANNEX E

This annex is not included. It is a four page spread sheet detailing the documentation necessary for a saw mill to apply for GOJ certification of its quality control programs, and indicates which requirements are being reduced or eliminated.] "


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