Export and Import Control

Security Export Control

The security environment worldwide is characterized by instability and growing uncertainty in the international order, including in the form of moves to strengthen military capabilities by some states, for example through the development of nuclear weapons, missiles, and other weapons of mass destruction; the pursuit of military action against other countries; territorial disputes among states; and the threat of international terrorism. Looking to implement export controls to ensure security, Japan has adopted the Foreign Exchange and Foreign Trade Act (“FEFTA”) and put in place stringent procedures to prevent the proliferation of weapons of mass destruction as well as ordinary weapons. Against this backdrop, Sharp has long engaged in security-related export controls, including by becoming one of the first companies in Japan to incorporate provisions adopted by the Coordinating Committee for Multilateral Export Controls (so-called COCOM regulations) into its own internal rules during the Cold War.

As technology advances and the line between civilian and military technologies blurs, the number of items of concern, for example dual-use products that potentially allow civilian technologies to be harnessed for military purposes, is growing. Adherence to security-related export controls is becoming more complex as countries impose sanctions in response to a variety of geopolitical tensions and strengthen associated export control laws.

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. The company has also formulated the Sharp Compliance Program on Export Control based on FEFTA to govern export controls.

When exporting products overseas, Sharp conducts 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. Sharp strives for legal compliance by reviewing internal rules in a timely manner whenever export control laws are revised. Sharp also strictly complies with the Export Administration Regulations of the U.S.

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

Sharp will maintain and further improve these systems to secure comprehensive export control.

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.
Sharp strives to ensure its 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 provides benefits such as simplification of customs procedures while helping ensure 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—Sharp has 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.

Sharp 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.