          
          
                    JAPAN IMPORT PROMOTION MEASURES
          
          In January 1990, the Japanese Government announced a 
          comprehensive three-year plan to increase Japanese imports.  
          The import promotion package includes tax incentives for 
          Japanese importers, elimination of tariffs on approximately 
          1,004 manufactured products, low-interest loans for import 
          promotion activities and foreign direct investment in 
          Japan, and a $100 million grassroots import promotion 
          program.
          
          Japanese manufacturers who increase their duty-free 
          manufactured imports of capital, intermediate, and durable 
          goods in Standard Industrial Trade Classification sections 
          5-8 by a minimum of 10 percent will be eligible for a 5 
          percent tax credit of the value of the increase in imports.  
          Alternately, manufacturers may choose a maximum of 20 
          percent accelerated depreciation for imported machinery.  
          The Japanese Ministry of International Trade and Industry 
          estimates that the incentives will increase manufactured 
          imports by $3 billion in the Japanese fiscal year 1990.
          
          A number of Japanese financial institutions have expanded 
          eligibility to foreign companies and increased low-interest 
          loan quotas for import promotion activities.  Qualifying 
          U.S. firms are eligible for manufactured export financing 
          by the Export-Import Bank of Japan.  Also, the Japan 
          Development Bank will offer low-interest loans for foreign 
          direct investment in Japan by foreign investors.
          
          The Japan External Trade Organization (JETRO) intends to 
          increase the number of trade and foreign buyer missions 
          traveling to and from Japan.  Many trade mission 
          participants will be recruited by local JETRO offices.  In 
          addition, Japanese export consultants have been sent by 
          JETRO to the United States for two years to conduct 
          seminars on exporting to Japan and provide individual 
          business counseling.
          
          
