Risks from Tighter Export Control Regulations and Violations of Laws and Regulations
First written in FY2017. 3 of 6 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2026.
Nihon Denkei moved to the "Worse" side of this theme in 2019.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Export control regulations have been strengthened under the Economic Security Promotion Act, the Foreign Exchange Order, the Export Trade Control Order and other legislation. ...To address stronger regulations, including the export control rules of other countries such as the US EAR, we are increasing staffing and enhancing the capabilities of the Trade Control Office.」
Regarding export control risks, the applicable domestic and international regulations, including the Economic Security Promotion Act and the US EAR, were specified, indicating that the scope of the regulatory environment has expanded. Measures involving increased staffing and enhanced capabilities in the Trade Control Office and employee training also continue. - FY2022RestatedAnnual report
「To address the strengthening of export control regulations under the Foreign Exchange Order, the Export Trade Control Order and other legislation, we are increasing staffing and enhancing the capabilities of the Trade Control Office. We are also focusing on training employees directly engaged in trade operations and building a framework that can respond promptly and accurately to export control regulations.」
In response to the risks associated with export controls and changes in laws and regulations, the Company continues to increase staffing and enhance capabilities in the Trade Control Office and train employees engaged in trade operations. - FY2021Strengthening of the export control frameworkAnnual report
「To address the strengthening of export control regulations under the Foreign Exchange Order, the Export Trade Control Order and other legislation, we are increasing staffing and enhancing the capabilities of the Trade Control Office. We are also focusing on training employees directly engaged in trade operations and building a framework that can respond promptly and accurately to export control regulations.」
As export controls are strengthened and laws and regulations continue to change, the Company has specified increased staffing and enhanced capabilities in the Trade Control Office, as well as training for employees engaged in trade operations, as countermeasures. - FY2020WorsenedAnnual report
「As trade friction between the US and China intensifies, situations have arisen in which the products that can be exported and the permitted counterparties are suddenly restricted, and the laws and regulations established by the Japanese government are changed successively.」
The strengthening of export controls has taken concrete form in sudden restrictions on exportable products and counterparties, as well as changes to laws and regulations. - FY2020-Q1WorsenedAnnual report
「In China, new capital investment was restrained, among other factors, because export restrictions on Huawei had been strengthened and concerns existed over a prolonged period of trade friction between the US and China.」
The strengthening of export controls actually occurred in connection with Huawei, and the disclosure states that new capital investment in China was restrained as a result. - FY2017First statedAnnual report
「Export control regulations have been strengthened under the Foreign Exchange Order, the Export Trade Control Order and other legislation. As the Group's business expansion overseas, particularly in China, accelerates, exports of measuring instruments and other equipment also tend to increase. Any violation of laws or regulations could lead to public criticism and adversely affect operating results and financial condition.」
Against the backdrop of overseas expansion and the increasing trend in exports of measuring instruments, the Company identifies stronger export controls and the impact of legal violations as risks.