“The Regulatory Landscape and Entry Structures relating to the Japanese Sake Market PartⅡ”: Food and Agriculture Practice Team

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The Regulatory Landscape and Entry Structures relating to the Japanese Sake Market Part II

Continuing on from Part I, this newsletter is primarily addressed to overseas businesses and foreign investment funds considering entry into or investment in Japan’s sake (seishu) manufacturing industry. Part I covered the current state of the sake market and industry, and the basic structure of the licensing system, in particular by focusing on the sake manufacturing license.

In Part II, we will cover institutional factors which have a direct bearing on investment decisions (geographical indications and liquor tax), operational regulatory requirements following acquisition (labeling and hazard analysis and critical control point ("HACCP") compliance), entry structure options, and investment restrictions under the Foreign Exchange and Foreign Trade Act ("FEFTA").

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[Contents]

1. Institutional Factors having a Direct Bearing on Investment Decisions

　1-1. Requirements for the National-Level GI "Nihonshu (Japanese Sake)" designation

　1-2. The Rapid Expansion of Regional Sake GIs

　1-3. The Basic Structure of the Liquor Tax Act

2. Operational Regulatory Requirements Following Acquisition

　2-1. Overview of Labeling and Display Regulations

　2-2. Mandatory HACCP Compliance

3. Entry Structure Options and Comparison

　3-1. Key Considerations for Share Acquisitions (Share Deal)

　3-2. Key Considerations for Establishing a New Entity Under an Export-Only Sake Manufacturing License