What Is a Non-Applicability Certificate? A Simple Guide for Exporting Machine Tools

One of the key documents involved in export procedures is the Certificate of Non-Applicability.

This document certifies that the exported product does not qualify as a weapon or a weapon-related item intended for military use or weapons of mass destruction. In other words, it serves to declare that “this product is not subject to special export controls.”

By presenting a Certificate of Non-Applicability, exporters can often omit complex export license applications and proceed with customs clearance more smoothly, making it a highly practical document.

Equipment and technologies related to weapons manufacturing are strictly regulated by law, and exporters are required to determine whether their products fall under so-called “list-controlled” items. If a product is subject to such controls, export permission from the Ministry of Economy, Trade and Industry (METI) is required.
The Certificate of Non-Applicability demonstrates that the product is outside the scope of these regulations and serves as important evidence that the exporter has clearly assessed and communicated the absence of military diversion risk.

Overview of Export Control Regulations

▶ List Control

Goods and technologies related to military use, weapons of mass destruction, and conventional weapons are specified in export control lists. Exports of listed items require official authorization, regardless of the destination country or region.

Detailed information on the applicable control lists can be found through official government sources.

▶ Catch-All Control

Even if goods or technologies are not listed, an export license may still be required if there is a risk that they could be used for the development, production, or use of weapons of mass destruction or conventional weapons.

Under catch-all controls, nearly all goods and technologies—excluding items such as food and timber—are subject to regulation. Exports to countries outside “Group A” nations are managed particularly strictly.
Information on which countries fall under these categories can be confirmed through official references.

Who Applies for the Certificate?

In principle, the exporter is responsible for the application.

Exporters are legally obligated to conduct an export control classification determination (applicability determination) for the products they export.
In many cases, exporters obtain classification or determination documents from manufacturers or suppliers.

If an exporter is unable to make the determination internally, they may request the manufacturer to perform the assessment and then use the resulting determination document.
Importers or overseas customers generally do not apply for Certificates of Non-Applicability.

Application and Submission Process

1.Confirmation of Product Specifications
Review product specifications and intended use in detail and conduct a preliminary check against export control lists.

2.Applicability Determination
Based on laws and regulatory lists, the exporter or manufacturer determines whether the product is “controlled” or “non-controlled.”

3.Preparation or Acquisition of the Determination Document
Create or obtain an applicability determination document (Certificate of Non-Applicability) stating the result.

4.Export License Application (If Required)
If the product is controlled, apply for export permission from METI and obtain the license.
If non-controlled, no license application is required, and the determination document is submitted during customs clearance.

5.Customs Clearance
Submit the determination document or export license to customs and complete clearance procedures.

6.Export Completion and Record Retention
After export completion, retain all related documents for the legally required period.

When the Product Is a Controlled Item

If the product is determined to be controlled, an export license from METI is required. Based on the applicability determination, the exporter must prepare the necessary documents, such as product specifications, end-use explanations, and the determination report.

Export License Application to METI

An export license application is submitted, and a review is conducted. During the review, the destination country, end use, and end user are carefully examined.

Obtaining the Export License

Once approved, an export license is issued. Exporting without this license is prohibited.

Customs Clearance

The export license must be submitted to customs in order to proceed with export procedures.

Compliance with Export Control Requirements

Even after export, exporters must fulfill security-related obligations such as re-export control and monitoring of how the product is used in the destination country.

Is a New Certificate Required When Selling or Transferring the Product to a Third Party?

In principle, a new Certificate of Non-Applicability is not required when a purchased product is sold or transferred (including as a gift) to a third party.

However, local import and distribution regulations must be followed in the destination country (for example, in Indonesia: importer licensing such as API registration, permits, and approvals).

A Certificate of Non-Applicability applies specifically to exports from Japan and certifies that the product is not subject to Japanese export control regulations at the time of export. Once the product has been exported and imported into another country, subsequent transactions between third parties within that country fall outside the scope of Japan’s export control regulations.
Therefore, re-issuance or re-application of the certificate in Japan is not required.

Consequences of Unauthorized Export of Controlled Items

If it is discovered that controlled items were exported without proper authorization, the following penalties may apply:

・Imprisonment: Up to 10 years

・Fines (Corporations): Up to JPY 1 billion

・Fines (Individuals): Up to JPY 30 million

Additional Sanctions

Violators may be prohibited from exporting goods or providing technology for up to three years. Restrictions may also be imposed on serving as officers or executives of related companies.

These penalties are designed to enforce strict compliance with export control laws. Violations carry severe legal and social responsibility, and all parties involved in export-related business must thoroughly understand these regulations and take preventive measures.

Summary: Key Points and Precautions Regarding Certificates of Non-Applicability

This article has explained the role of the Certificate of Non-Applicability, the application process, and important considerations when exporting controlled items.

Key takeaways include:

・A Certificate of Non-Applicability is an essential document that proves exported machinery is outside the scope of export control regulations and enables smooth export procedures.

・It is important to accurately understand the entire process—from confirming product specifications and conducting applicability determinations to obtaining documentation and, if required, applying for export licenses from METI.

・Unauthorized export of controlled items can result in severe legal penalties, including imprisonment and substantial fines, as well as serious reputational consequences.