Export and Import Control

Security Export Control

With increasing uncertainty in the global security environment, and against a backdrop of proliferation of weapons of mass destruction, such as nuclear weapons and missiles, as well as of conventional weapons, the threat of international terrorism, and the expansion of sanctions imposed by various countries, the standards required for security-related export controls are becoming even stricter.

As technology advances and the line between civilian and military technologies blurs, the number of items of concern, for example dual-use items that potentially allow civilian technologies to be harnessed for military purposes, is growing.

In light of these environmental changes, we recognize the seriousness of legal violation risks, reputation risks, and supply chain risks as issues to be addressed. We have long engaged in security-related export controls, as evidenced by the fact that we were one of the first companies in Japan to incorporate provisions adopted by the Coordinating Committee for Multilateral Export Controls (so-called COCOM regulations) into our internal rules during the Cold War.

To accommodate this state of affairs, Sharp Corporation and affiliates in Japan have incorporated thorough compliance with security-related export controls as a model for behavior into the Sharp Code of Conduct. We have also formulated the Sharp Compliance Program on Export Control based on FEFTA (Foreign Exchange and Foreign Trade Act) to govern export controls.

The purpose of these controls is to (1) prevent the unauthorized export or provision of regulated goods and technologies; (2) recognize concerns regarding trading partners, end-users, and intended uses; (3) respond to laws and sanctions in various countries; and (4) preserve the basis and evidence for internal decisions made in accordance with rules, such as those governing reviews.

When exporting products overseas, we conduct an internal investigation to determine whether controls apply to goods and technologies; to confirm destinations, counterparties, and end-users; and to assess whether there are any concerns about applications and uses. We strive for legal compliance by reviewing internal rules in a timely manner whenever export control laws are revised. We also strictly comply with the Export Administration Regulations of the United States.

To maintain export control structures like these, we regularly offer various export control-related education programs, including with e-learning components, for all employees.

Through these efforts, we strive to identify risks early and prevent them. We are also working to improve our internal operations and will continue to implement appropriate export controls in the future.

Trade Control

The Customs Act and other laws of Japan require proper export and import controls (trade controls). In particular, there is a strong need for appropriate logistics control regarding the security of imported and exported goods, for example to stop the flow of supplies to domestic and international terrorist groups and to address the problem of illegal cross-border movements of goods like illegal drugs and products violating intellectual property rights, a major social issue.

We strive to ensure our import and export operations are conducted in an appropriate manner by maintaining licensing as an AEO (authorized economic operator) exporter* and importer* and by strictly observing laws and regulations across every import/export process, including management of security, distribution, and customs clearance procedures as well as payment of import consumption tax and duties.

This approach not only ensures legal compliance and reduces risks through thorough and appropriate trade controls, but it also facilitates customs procedures, contributing to ensuring the safety of the global supply chain. When it comes to a diverse range of export/import items other than those described above—for example, international courier/mail or hand luggage carried by business trip travelers and visitors—we have put in place compliance structures to ensure appropriate trade controls and strengthened internal management, including reviewing and updating operational rules, making a database of export/import records, and conducting thorough training.

We will continue to conduct appropriate trade controls.

An exporter or importer recognized by the Japan Customs as having put in place a system for security control of goods and compliance.