Common use of Reservations and Exceptions Clause in Contracts

Reservations and Exceptions. 1. Articles 59, 60 and 63 shall not apply to: (a) any non-conforming measure that is maintained by the following on the date of entry into force of this Agreement, with respect to the sectors or matters specified in Annex 4: (i) the central government of a Party; or (ii) a prefecture of Japan or a province of Indonesia; (b) any non-conforming measure that is maintained by a local government other than a prefecture and a province referred to in subparagraph (a)(ii) on the date of entry into force of this Agreement; (c) the continuation or prompt renewal of any non- conforming measure referred to in subparagraphs (a) and (b); or (d) an amendment or modification to any non- conforming measure referred to in subparagraphs (a) and (b), provided that the amendment or modification does not decrease the conformity of the measure, as it existed immediately before the amendment or modification, with Articles 59, 60 and 63. 2. Each Party shall, on the date of entry into force of this Agreement, notify the other Party of the following information on any non-conforming measure referred to in subparagraph 1(a): (a) the sector or matter, with respect to which the measure is maintained; (b) the domestic or international industry classification codes, where applicable, to which the measure relates; (c) the level of the government which maintains the measure; (d) the obligations under this Agreement with which the measure does not conform; (e) the legal source of the measure; and (f) the succinct description of the measure. 3. Articles 59, 60 and 63 shall not apply to any measure that a Party adopts or maintains with respect to the sectors or matters specified in Annex 5. 4. Where a Party maintains any non-conforming measure on the date of entry into force of this Agreement with respect to the sectors or matters specified in Annex 5, the Party shall, on the same date, notify the other Party of the following information on the measure: (a) the sector or matter, with respect to which the measure is maintained; (b) the domestic or international industry classification codes, where applicable, to which the measure relates; (c) the obligations under this Agreement with which the measure does not conform; (d) the legal source of the measure; and (e) the succinct description of the measure. 5. Neither Party shall, under any measure adopted after the date of entry into force of this Agreement with respect to the sectors or matters specified in Annex 5, require an investor of the other Party, by reason of its nationality, to sell or otherwise dispose of an investment that exists at the time the measure becomes effective, unless otherwise specified in the initial approval by the relevant authority. 6. In cases where a Party makes an amendment or a modification to any non-conforming measure notified pursuant to paragraph 2 or 4, or where a Party adopts any new measure with respect to the sectors or matters specified in Annex 5, after the date of entry into force of this Agreement, the Party shall, as soon as possible: (a) notify the other Party of detailed information on such amendment, modification or new measure; and (b) respond, upon the request by the other Party, to specific questions from the other Party with respect to such amendment, modification or new measure. 7. Each Party shall endeavor, where appropriate, to reduce or eliminate the non-conforming measures that it adopts or maintains with respect to the sectors or matters specified in Annexes 4 and 5 respectively. 8. Articles 59 and 60 shall not apply to any measure covered by the exceptions to, or derogations from, obligations under Articles 3 and 4 of the TRIPS Agreement, as specifically provided in Articles 3 through 5 of the TRIPS Agreement. 9. Articles 59, 60 and 63 shall not apply to any measure that a Party adopts or maintains with respect to government procurement.

Reservations and Exceptions. 1. Articles 59, 60 and 63 shall not apply to: : (a) any non-conforming measure that is maintained by the bythe following on the date of entry into force of this ofthis Agreement, with respect to the sectors or matters ormatters specified in Annex 4: : (i) the central government of a Party; or or (ii) a prefecture of Japan or a province of Indonesia; ofIndonesia; (b) any non-conforming measure that is maintained by a bya local government other than a prefecture and a province aprovince referred to in subparagraph (a)(ii) on the onthe date of entry into force of this Agreement; ; (c) the continuation or prompt renewal of any non- conforming nonconforming measure referred to in subparagraphs subparagraphs (a) and (b); or or (d) an amendment or modification to any non- conforming nonconforming measure referred to in subparagraphs subparagraphs (a) and (b), provided that the amendment or modification ormodification does not decrease the conformity of the ofthe measure, as it existed immediately before the amendment theamendment or modification, with Articles 59, 60 and 60and 63. . 2. Each Party shall, on the date of entry into force of this ofthis Agreement, notify the other Party of the following information followinginformation on any non-conforming measure referred to in subparagraph insubparagraph 1(a): ): (a) the sector or matter, with respect to which the measure themeasure is maintained; ; (b) the domestic or international industry classification industryclassification codes, where applicable, to which the whichthe measure relates; ; (c) the level of the government which maintains the measure; themeasure; (d) the obligations under this Agreement with which the whichthe measure does not conform; ; (e) the legal source of the measure; and and (f) the succinct description of the measure. . 3. Articles 59, 60 and 63 shall not apply to any measure that measurethat a Party adopts or maintains with respect to the sectors thesectors or matters specified in Annex 5. . 4. Where a Party maintains any non-non- conforming measure on the onthe date of entry into force of this Agreement with respect to respectto the sectors or matters specified in Annex 5, the Party shallPartyshall, on the same date, notify the other Party of the following thefollowing information on the measure: : (a) the sector or matter, with respect to which the measure themeasure is maintained; ; (b) the domestic or international industry classification industryclassification codes, where applicable, to which the whichthe measure relates; ; (c) the obligations under this Agreement with which the whichthe measure does not conform; ; (d) the legal source of the measure; and and (e) the succinct description of the measure. 5. Neither Party shall, under any measure adopted after the afterthe date of entry into force of this Agreement with respect to respectto the sectors or matters specified in Annex 5, require an investor aninvestor of the other Party, by reason of its nationality, ,to sell or otherwise dispose of an investment that exists at existsat the time the measure becomes effective, unless otherwise specified otherwisespecified in the initial approval by the relevant authorityrelevantauthority. 6. In cases where a Party makes an amendment or a modification amodification to any non-conforming measure notified pursuant to paragraph 2 or 4, or where a Party adopts any new measure with respect to the sectors or matters specified in Annex 5, after the date of entry into force of this Agreement, the Party shall, as soon as possible: (a) notify the other Party of detailed information on such amendment, modification or new measure; and (b) respond, upon the request by the other Party, to specific questions from the other Party with respect to such amendment, modification or new measure.notifiedpursuant to 7. Each Party shall endeavor, where appropriate, to reduce toreduce or eliminate the non-conforming measures that it adopts itadopts or maintains with respect to the sectors or matters specified mattersspecified in Annexes 4 and 5 respectively. . 8. Articles 59 and 60 shall not apply to any measure covered measurecovered by the exceptions to, or derogations from, ,obligations under Articles 3 and 4 of the TRIPS Agreement, ,as specifically provided in Articles 3 through 5 of the TRIPS theTRIPS Agreement. . 9. Articles 59, 60 and 63 shall not apply to any measure that measurethat a Party adopts or maintains with respect to government procurementgovernmentprocurement.