1. Introduction
- The Freight Forwarding Business Law (hereafter referred to as the "Forwarding Law") was promulgated on December 1, 1990 with the objective of positioning freight forwarding businesses (hereafter referred to as "forwarding businesses") conventionally positioned as businesses to mutually supplement railway, aviation and other means of transport based on the separate business laws for those means, as businesses fulfilling independent functions extending across various means of transport, as well as the simplifying and rationalizing of business regulations.
- Because the Forwarding Law is legislation which unifies businesses originally possessing different business customs into a unified system, it was viewed that the need existed for a study on the enactment status of the law three years after its passage, following by the devising of any necessary measures on the basis of the results of that study. In the process of deliberation at the National Diet, Article 52 was added as a supplementary provision, while with regard to the enactment the government carried out additional resolutions on items judged to deserve particular consideration and action.
As a general profile of the enactment status of the Forwarding Law, with detailed interim measures also having been implemented, the law can be considered to have settled in smoothly over the past three years with little if any confusion.
Examining the new entry status following promulgation of the Forwarding Law, with the enactment coinciding with a serious business downturn, it cannot be said that there has been a broad-based increase in the number of business operators in the field. However, compared to the conventional trend, there have been a steady trend of new entries in the field. Furthermore, there has also been an overall reasonable number of joint entries carried out in combination with overseas forwarders.
Examining the freight charge and fee notification status, with regard to the freight charges and fees for new entries, route additions and other patterns, the new settings and changes have been carried out in a generally flexible and timely manner.
The "Air Parcel Delivery" service was initiated from December 1991 as a new service response to the changes in social needs and the legal system.
The major measures devised through supplementary resolutions and the status of their observance are as described below:
- To ensure that forwarding businesses do not unfairly oppress actual transport businesses or related cargo distribution related operators (hereafter referred to as actual transport businesses, etc.) with freight charges, rates or on other fronts, instruction regulations shall be attached to the enactment rules, notification shall be made to the regional transport bureaus with regard to the observance of the freight charges and rates, while inspections and other means shall be utilized to provide guidance in that area.
- To unify the inspection standards and ensure transparency with regard to entry, notification was made to the regional transport bureaus and other destinations with regard to the inspection standards.
- With regard to the relationship between port and harbor works and the forwarding businesses, to ensure that no confusion occurs between the two business categories, notification was made to the regional transport bureaus and other destinations, while thorough efforts were advanced to achieve understanding in this area.
- With regard to inspections and other checks of forwarding businesses, notification has been made to the regional transport bureaus, while inspections are being steadily implemented by the Ministry of Transport and the regional transport bureaus.
According to the opinions of related groups, the results of inspections and other information, there has been no major change in the relationship between the forwarding businesses and the actual transport businesses, etc., with the goals of the additional resolutions being observed. In view of this, the assessment is that the operation of the businesses following the promulgation of the new law has been conducted in a generally appropriate manner.
However, with regard to the relationship with the port and harbor works, concerns have been expressed with regard to the deviation of forwarding businesses from the sphere of their business, prompting the view that more thorough implementation of the additional resolutions is necessary.
As a result of the interim measures, business operators active prior to the promulgation of the Forwarding Law are generally carrying on their businesses without disruption. With regard to one portion of businesses, however, there are some instances in which certain of the required procedures have yet to be completed.
- Basic Perspectives
- With regard to the points of concern at the initial promulgation of the Forwarding Law, no serious problems have been encountered, and it can be said that steady legal progress has been made toward the improvement of user convenience and other objectives of the law. Accordingly, it is judged appropriate to maintain the basic framework of the law.
- With regard to the relationship between the forwarding businesses and the actual transport businesses, etc., there is a need to carry on efforts toward the establishment of even more positive ties in the future.
- While it has become possible for the forwarding businesses to supply services combining different means of transport, there has been little progress in the development of new products which respond to a broader range of shipper needs. Efforts should be made to make greater utilization of the merits of being the ability to choose between various different transport means.
- Basic Proposals
- Creation of better relationship between forwarding businesses and actual transport businesses, etc.
The maintaining of good relationships between the forwarding businesses and the actual transport businesses, etc. is indispensable for realizing stable, high-grade distribution, with encouragement for the establishment of venues for exchanging views and other mutual efforts between the involved parties.
- Conclusion of Interim Measures
- With regard to the "confirmed businesses," it is judged appropriate to make efforts to reduce the appended materials and otherwise simplify the application procedures.
- With regard to businesses on which new regulations have been placed through promulgation of the Forwarding Law and which processing has yet to be carried out due to failure to satisfy the licensing standards, it is judged that guidance necessary to satisfy the requirements should be carried out, along with the adoption within a set period of time of proper measures within the context of the laws and other standards.
- Proposals to the Government or Business Operators
- With regard to small-lot format cargo, it is hoped that products will be developed which offer easy-to-understand services with the major elements of freight charge and time required -- in other words, products in which the forwarding businesses are able to make appropriate choices between multiple numbers of transport means.
- With regard to general mixed cargo business operations as well, it will be appropriate, as with the air parcel delivery business, to promote the establishment of door-to-door freight charges which are easy for the user to understand. In addition, for railway use forwarding businesses as well, efforts are needed in the direction of establishing door-to-door freight charges.
- In the commencement of new services accompanying the addition of routes and other changes, it is desired that procedures be simplified to facilitate the formation of broad-based networks by motivated businesses.
- Viewed from the perspective of the convenience of applicants and the efficiency of the administrative work involved, there is a need for studies into the consolidation of the liaison desks and other pertinent matters.
- Other Related Items
- From the perspective of developing composite/integrated transport, it is hoped that studies will continue to be conducted on proper regulations and other aspects of freight charges and rates for actual transport.
- With regard to the freight charges and rates for international composite/integrated transport, further studies will be required from here on.
- Consolidation of Licensing and Other Aspects of the Forwarding Law At the time that the Forwarding Law was promulgated three years ago, broad-based simplification and rationalization was achieved in comparison to the previous legal system. However, as indicated in the report of the Provisional Council for the Promotion of Administrative Reform, from the perspective of mobilizing the autonomous ingenuity of the business operators, reducing the burden on the public, and simplifying and rationalizing the administrative side, it is hoped that necessary government studies will be conducted to advance the further consolidation of licensing and other steps.
- Inquiries Direct to: Policy Division Transport Policy Bureau
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