Public Procurement

Please visit the EU Business in Japan platform to get other resources on PP.

In order to be eligible to participate in bidding for government contracts for construction and design of public works an entirely different qualification system exists.  This system includes the ‘Business Matters Evaluation’ (keizai jikou shinsa); popularly know as keishin. The system is designed to ensure that Japan government entities are certain that the supplier is able to fulfil the contract it has concluded, which is of particular importance for often-larger scale construction projects.

In line with the WTO agreement on public procurement Japan has established  a complaints system, called CHANS. In practice, this system is seldom used since its establishment in 1996.  At the regional and local level, procuring entities have their own complaint procedures, primarily dealing with public works’ tenders.  Prefectures and designated cities have established ‘tender monitoring committees’  (nyuusatsu kanshi iinkai) usually consisting of specialists from academia and the legal profession.

Electronic bidding systems are rapidly becoming the norm in Japan, with many government organisations setting up designated portals to conduct all tender procedures online. The national government has integrated the various steps of the procurement process into one portal called GEPS. (www.geps.go.jp) 

The overall majority of tenders in Japan are evaluated on one criterion: - lowest price. The reasoning behind this is that all suppliers participating are deemed to possess the ability and skills to meet the conditions of the tender, ensured by the Supplier Qualification System.

Projected Price

Submission and opening of tenders

Once all documents for the tender have been prepared, they must be sealed and submitted at the location specified in the tender notice and/or tender documentation. Documents can be submitted in person by tenderers themselves or by representative, or by mail.

In general, there is little English information made available on licenses and permissions in Japan.  In particular, if a company is active in sectors such as construction or the medical sector, licenses will be required. It is advisable to orientate at an early stage what licenses are required. 

The Ministry of Land, Infrastructure, Transport and Tourism gives a general outline regarding the construction license system in Japan.

General overview

For a general overview on Japanese standards and various resources see the description under Legal & Regulatory Issues » Standards.

Practical Information

 The Japan Industrial Standards Committee (JISC), a body attached to METI and in charge of surveying and deliberating on industrial standards, offers searchable databases on its website. They are however in Japanese.

To ensure the quality and safety of goods and services provided to Japanese government entities, in quite a few categories certain standards need to be met or licenses obtained. In particular, in tenders where a product is produced specifically for the procuring entity suppliers have to meet industrial standards.  

Given the large diversity in the goods and services that are procured by government entities, it rather difficult to give a concise description of the contents of tender documentation. For the procurement of relatively simple items, the documentation can be short, but for complex items, the tender documentation can consist of hundreds of pages of text.