METI Ministry of Economy Trade and Industry of : Cabinet Decision on the Cabinet Order for Enforcement of the Revised Trade and Investment Insurance Act and Other Act

Pursuant to the Act for Partial Revision of the Trade and Investment Insurance Act and the Act on Special Accounts (hereinafter referred to the 'Revised Act'), which was established at the 189th ordinary session of the Diet, the form of Nippon Export and Investment Insurance (NEXI) will change from an incorporated administrative agency to a special stock company, and the Trade Reinsurance Special Account will be abolished. In line with this, on January 17, 2017, the Cabinet decided to approve a Cabinet Order for developing necessary provisions as follows:

1. Outline of the revision of the Trade and Investment Insurance Act and Other Act

Aiming to further enhance the effectiveness and efficiency of trade insurance business, on July 10, 2015, the Revised Act was established at the 189th ordinary session of the Diet, stipulating necessary provisions to achieve: changing the form of NEXI from an incorporated administrative agency to a special stock company that is fully funded by the Government of Japan, abolishing the government-led reinsurance system and the Trade Reinsurance Special Account, establishing a system in which payment of insurance claims will be ensured, and other efforts.

2. Summary of the Cabinet Order

In line with the enforcement of the Revised Act in April 2017, the Ministry of Economy, Trade and Industry (METI) decided to stipulate the following rules under the Cabinet Order for Developing Related Cabinet Orders Required to be Revised along with the Enforcement of the Revised Act and for Stipulating Transitional Measures Required for the Enforcement.

1. The Order for Enforcement of the Trade and Investment Insurance Act is to revise the provisions that stipulate the procedures for issuing corporate bond certificates by the Nippon Export and Investment Insurance (hereinafter referred to as the 'new company') and to remove the provisions involving the Trade Reinsurance Special Account from the Order for Enforcement of the Act for Special Account, thereby developing the necessary provisions also in the related Cabinet Orders.
2. METI is to take necessary measures involving the establishment of a new organization concerning the new company, including those for removing goods for government use from the coverage of funding to the new company.

For further details, see the Japanese language news release.

Release date

January 17, 2017

Division in Charge

Trade Insurance Division, Trade and Economic Cooperation Bureau