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Recruitment Guidelines for Businesses Receiving Support under the FY 2019 Program to Support the

Development of Innovative Nuclear Power Technologies in Response to Society's Needs

April 19, 2019

Ministry of Economy, Trade and Industry

Agency for Natural Resources and Energy

Nuclear Energy Policy Planning Division

In implementing the FY 2019 Program to Support the Development of Innovative Nuclear Power

Technologies in Response to Society's Needs, the Ministry of Economy, Trade and Industry will

recruit businesses to receive broad support under the following guidelines. Applicants for and

recipients of subsidies under this Program are requested to complete all procedures related to the

receipt of subsidies based on a firm understanding of the Act on Regulation of Execution of Budget

Pertaining to Subsidies (Act No. 179 of August 27, 1955) and the Payment Guidelines and in full

recognition of the following points.

Points to note when applying for subsidies

(i) Refrain from including any false or misleading descriptions in the content of all documents

submitted in connection with subsidies regardless of the reason.

(ii) The Ministry of Economy, Trade and Industry may conduct on-site inspections and other activities

as necessary to confirm that a subsidy has not been improperly received through fraud or other

improper means.

In addition, if any issues of concern or points requiring clarification are identified regarding trading

partners (including subcontractors, outsourcees, and those at lower levels) involved in the Program,

on-site inspections will be conducted as necessary with the recipient of the subsidy present. In such

a case, the recipient will be asked to secure the cooperation of the trading partners.

(iii) If the results of the above investigation show that an improper act has taken place, then the

decision to pay the relevant subsidy shall be cancelled, and refunding of the amount of the subsidy

already received subject to cancellation plus a surcharge (calculated at an annual percentage rate of

10.95%) shall be imposed. In addition, other measures may be implemented, including prohibition

of payment of new subsidies by the Ministry of Economy, Trade and Industry and public

announcement of the name of the business and the details of the impropriety.

(iv) Under Articles 29-32 of the Act on Regulation of Execution of Budget Pertaining to Subsidies,

improper acts related to subsidies are subject to criminal penalties and other measures. Please be

certain to understand fully such provisions concerning penalties before conducting the application

procedures for this Program.

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(v) Expenses for which ordering or other procedures are completed prior to the decision on the

payment of a subsidy from the Ministry of Economy, Trade and Industry shall not be eligible for the

payment of subsidies.

(vi) In principle, recipients are prohibited from concluding sales, subcontracting, or other agreements

for purposes of projects receiving subsidies or agreements on entrustment to or joint

implementation with third parties of parts of projects receiving subsidies (not including those for

which the amount of the agreement is less than 1 million yen) with businesses subject to suspension

of payment of subsidies or other activities or to suspension of naming as the recipients of subsidies

by the Ministry of Economy, Trade and Industry (the same shall apply no matter how many levels

are involved in the implementation structure for the project receiving subsidies).

Related information is available at the following URL:

www.meti.go.jp/information_2/publicoffer/shimeiteishi.html

(vii) The approval of the Minister of Economy, Trade and Industry must be obtained prior to disposal

(this refers to use for purposes contrary to the intentions of payment of the subsidy, sale, exchange,

leasing, or pledging as collateral) of assets acquired or for which utility has been increased using

subsidies (assets acquired) during the period in which disposal of such assets is restricted.

In addition, the state of management of assets acquired may be investigated as necessary.

[1. Program Overview]

1-1. Purposes of this Program

These subsidies are intended to promote the development of nuclear power technologies

capable of responding to society's needs and thereby to restore trust in nuclear power in Japan,

and to positively affect the realization and progress of the safe use of nuclear power in the future

through support for technological development toward advancing highly safe, economical, and

dynamic nuclear reactor technologies.

1-2. Program scheme

Ministry of Economy, Trade and Industry

(Application)↑ ↓(Subsidy) Subsidy rate: 3/4

Recipient business

1-3. Program details

Premised on the concept that the public and private sectors will join up to first strengthen the

human resource, technological, and industrial foundations for all options concerning

decarbonization systems and take on the challenge of resolving the issues with regard to nuclear

power, the Fifth Strategic Energy Plan decided on by the Cabinet Office in July 2018 calls for

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further enhancing safety, reliability, and efficiency; promoting innovation of technology related to

nuclear power that takes into consideration growing demands from society, including coexistence

with renewable energy, hydrogen production, and heat utilization; and strengthening human

resources, technology, and industry foundations; to proceeding with the pursuit of reactors with

superior safety, economics, and mobility; and developing technology aimed at the resolution of

backend problems. The Thinking on Technical Development and R&D, decided on in June 2018

by the Atomic Energy Commission, also states: "In addition to its own serious consideration of

matters in making decisions on future R&D courses of action, industry should bear suitable costs

in realizing innovation led by the private sector."

In addition, from a global perspective, a wide range of efforts toward innovation in nuclear

reactor technologies through means of further improvements in the safety, economic performance,

and dynamism of nuclear power are beginning in response to the changing energy situation as

nuclear power is seen as one option already in the practical stage for reducing reliance on carbon

fuels. Under such circumstances, Japan faces a pressing need—and is the subject of high

expectations worldwide—for helping to counter global warming, while also contributing

proactively to increasing nuclear safety, promoting the peaceful use of nuclear power, and

promoting nonproliferation and nuclear security, as well as maintaining and advancing Japan's

technologies and human resources in the field of nuclear power.

In light of this concept, the Program will provide support for the development of nuclear

reactor technologies related to reactors capable of meeting society's needs in diverse areas- such

as further increases in safety and reliability, improvements in economic performance and

dynamism, prevention of nuclear proliferation, use of diverse energy sources, and countering

nuclear waste – intended to promote technological development for nuclear power—a practical

option for reducing reliance on carbon fuels—as one means in the pursuit of diverse choices

among energy sources and to realize innovation in nuclear reactor technologies utilizing private

sector ingenuity. Specifically, after identifying innovative nuclear reactor technologies (this refers

to use of energy generated through nuclear fission) for realizing solutions to various issues in

response to the demands of society as outlined above, participants will conduct investigations and

research (feasibility studies) to determine whether or not the relevant technological elements have

future business potential from the perspectives of technological maturity, market potential for

commercialization, establishment of practical development structures, and regulation in

commercialization.

It is envisioned that through such feasibility studies for the recognized nuclear reactor

technologies to have future business potential, appropriate narrowing of options will take place

beginning in the next fiscal year in order to prioritize assistance, and then in accordance with the

degrees of maturity of the technologies, schedules, and other factors, support will be provided for

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giving concrete form to technological development plans and implementing practical

technological development. (Please note that the thinking on schedules described above indicates

the thinking as of the current time regarding rough targets for project proposals and does not

represent final plans for future project implementation.)

In proposing projects, it is acceptable for multiple businesses and organizations to cooperate

and collaborate on a project through applying as consortia, if doing so is expected to enable

efficient project operation or greater project results. For purposes of this Program, a consortium

shall refer to a structure in which multiple businesses and organizations implement a single

project together and the subsidy is paid to the lead partner.

Businesses and organizations involved in this Program shall engage proactively in activities to

explain to society and the public, in easily understandable ways, matters that include the content

and results of research activities (hereinafter scientific and technological public dialogs). (For

details, see the Promotion of Scientific and Technological Public Dialog [Basic Policy], June 19,

2010.)

1-4. Project implementation period

From the date of decision on payment of the subsidy to February 28, 2020

1-5. Eligibility for application

Eligibility for application: Private sector organizations meeting the following descriptions may

apply.

Note: When multiple private sector organizations apply jointly or when applying as a

consortium, please decide on a lead partner and have that lead partner submit the project

proposal. However, the lead partner may not entrust all operations to others.

(i) They must have facilities in Japan. (If a private sector company, it must have a subsidiary in

Japan. If a consortium, the lead partner must have a facility in Japan.)

(ii) They must have the capabilities and structures to comply reliably with the NSG Guidelines

of the Nuclear Suppliers Group (NSG) and the export control provisions of the (Act No. 228

of 1949) and with other necessary laws and regulations.

(iii) They must have sufficient organizations and personnel to carry out the project properly.

(iv) They must have the business infrastructure needed to carry out the project smoothly, and

they must have sufficient capabilities for management of funds.

(v) They must not be parties subject to measures, such as suspension of payment of subsidies

or other activities or suspension of naming as recipients of subsidies by the Ministry of

Economy, Trade and Industry.

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(vi) They must have a structure that enables compliance with the standards for compliance by

exporters and others established in Article 55-10, Paragraph 1, of the Foreign Exchange and

Foreign Trade Act under their own autonomous management efforts. Upon adoption for the

Program, please submit records of the matters specified in Form 4, "State of Compliance

with Security-related Trade Controls," and the necessary documents.

[Reference] Standards for compliance by exporters and others

These are provisions with which those intending to engage in exports or provision of technology as

businesses (exporters and others) must comply. Exporters and others not handling specified

important cargo subject to precise security restrictions must comply with the following: 1) they

must have specific persons responsible for checking cargo, and 2) they must provide guidance on

legal and regulatory compliance. Exporters and others who do handle specified important cargo

subject to precise security restrictions also must comply with additional requirements, including

the following: 1) they must specify their representatives as the persons responsible, 2) they must

establish export control structures, 3) they must establish procedures for confirming whether or

not cargo or technologies are subject to export controls, 4) they must establish procedures for

confirmation of uses and end users, and 5) they must confirm at the time of shipping that the

cargo or technologies match those for which export controls have been confirmed.

[Notes on applying]

Responding to export restrictions on technologies obtained through research activities

(1) Japan applies export controls* pursuant to the Foreign Exchange and Foreign Trade Act. In

principle, the permission of the Minister of Economy, Trade and Industry must be obtained in

accordance with the Foreign Exchange and Foreign Trade Act before exporting (providing) any

cargo or technologies subject to restrictions under that Act.

*Pursuant to international agreements and other arrangements, Japan's system of security-related export

controls consists mainly of (i) a system requiring, in principle, the permission of the Minister of

Economy, Trade and Industry prior to exporting (providing) cargo (technologies) involving

specifications or functions at or above a certain level, such as carbon fibers and numerically controlled

machine tools (list restrictions), and (ii) a system requiring the permission of the Minister of Economy,

Trade and Industry prior to exporting (providing) cargo (technologies) not subject to list restrictions if

certain requirements (use requirements, end-user requirements, or informed requirements) are satisfied

(catchall restrictions).

(2) The restrictions of the Foreign Exchange and Foreign Trade Act apply not only to the export of

cargo but to the provision of technology as well. Prior approval is required before providing listed

technologies to foreign (non-resident) parties. Provision of technology includes not only the

provision of technical information, such as designs, specifications, manuals, samples, and

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specimens through recording media, such as paper, email, CDs, and USB memory, but also the

provision of operational knowledge through the means of technical guidance and technical

training as well as technical support through seminars. Activities for the acceptance of

international students and joint research may also include numerous examples of the exchange of

technologies subject to restriction under the Foreign Exchange and Foreign Trade Act.

(3) It also must be noted that efforts to export (provide) technologies obtained through this

(subcontracting/subsidy) program may also be subject to restrictions. If it has been determined

that restrictions under the Foreign Exchange and Foreign Trade Act have been violated with

regard to technologies acquired through this project, the decision to grant the subsidy may be

canceled in whole or in part (i.e., the contract may be cancelled in whole or in part).

[Reference] See the websites below for details of security-related trade controls.

Ministry of Economy, Trade and Industry: Security-related trade controls (in general)

http://www.meti.go.jp/policy/anpo/ *Also contains contact information

Ministry of Economy, Trade and Industry: Handbook on security-related trade controls

http://www.meti.go.jp/policy/anpo/seminer/shiryo/handbook.pdf

Center for Information on Security Trade Controls

http://www.cistec.or.jp/index.html

Detailed guidance on control of technologies related to security-related trade controls (for use by

universities and research institutions)

http://www.meti.go.jp/policy/anpo/law_document/tutatu/t07sonota/t07sonota_jishukanri03.pdf

[2. Requirements for awarding of subsidy]

2-1. Planned number of projects selected: roughly 15 projects (within the scope of the budget)

2-2. Subsidy rate/amount

Subsidy rate: up to 3/4 of expenses subject to the subsidy

Max.: 50,000,000 yen (corresponding project amount: 66,666,667 yen)

Min.: 5,000,000 yen (corresponding project amount: 6,666,667 yen)

The final implementation details and amount of subsidy to be awarded will be decided through

coordination with the Ministry of Economy, Trade and Industry.

[3. Payment of the subsidy]

3-1. Timing of payment

In principle, the subsidy will be settled and paid after completion of the project.

*Payment prior to completion of the project (payment by estimate) is possible with the

approval of the Ministry of Finance. Applicants who desire payment by an estimate in light

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of the impact on cash flow or other considerations are requested to consult with the staff

responsible.

3-2. Method of finalizing the payment amount

After completion of the project, the payment amount will be finalized based on the

performance report submitted by the business, in principle, through on-site inspections. The

payment amount shall be the total of expenses subject to the subsidy that fall within the scope of

the amount at which the subsidy has been decided to be awarded and for which expenditures were

required. For this reason, evidence, such as ledgers and receipts clearly showing funds received

and spent, is required for all expenditures. In addition, note that the payment amount and content

will be screened strictly, and expenses that do not satisfy these requirements might not be eligible

for inclusion in the payment amount.

3-3. Ascertaining the implementation structure at the time of submittal of the performance report

Because of the need to confirm the project implementation structure, expenses subject to the

subsidy will be recorded separately when the performance report is submitted after completion

of the project. For this reason, if using outsourcing or subcontracting, attach implementation

structure materials* indicating the names of the businesses with which such contracts have

been concluded (only those involving transactions of 1 million yen or more, tax included), their

contractual relationships to the recipient business, their addresses, the contracted amounts, and

the content of the contracts.

*These materials will be used in confirmation during the finalization inspection.

In the recording of expenses subject to the subsidy, while no distinction will be made

regarding outsourcing or subcontracting expenses, travel expenses, meeting expenses,

honoraria, supplies expenses (including rents), and assistant labor costs will not be eligible.

Also indicate on the implementation structure materials relevant information for cases in

which outsources or subcontractors outsource or subcontract operations (i.e., cases of

sub-subcontracting or similar activities for transactions of 1 million yen or more, tax included).

(There is no need to indicate amounts for sub-sub-subcontractors.)

[Example of descriptions on the implementation structure materials]

In principle, describe the implementation structure using a table and an implementation structure

chart similar to the examples below. Based on Form 6, clearly indicate the implementation structure

and the names of the businesses with which contracts have been concluded, their contractual

relationships to the recipient business, their addresses, the contracted amounts, and the content of the

contracts.

Implementation structure

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(outsourcing/subcontracting agreements in amounts of 1 million yen or more, tax included)

Name of business Relation to the

Company

Address Contracted amount

(tax included)

Scope of operations

A Research Institute

Co., Ltd.

Subcontractor . . .,

xx-ku,

Tokyo

*Use Arabic

numerals

denominated in yen

*Describe in as

much detail as

possible

B Research Institute

Co., Ltd.

Sub-subcontractor

(subcontractor to A

Research Institute

Co., Ltd.)

(See

above)

(See above) (See above)

C Consulting Co.,

Ltd.

Sub-subcontractor

(subcontractor to A

Research Institute

Co., Ltd.)

(See

above)

(See above) (See above)

D Trading Co., Ltd. Sub-sub-subcontract

or (subcontractor to

B Research Institute

Co., Ltd.)

(See

above)

Not required* (See above)

E Center Co., Ltd. Subcontractor . . .,

xx-ku,

Tokyo

*Use Arabic

numerals

denominated in yen

*Describe in as

much detail as

possible

*Since D Trading Co., Ltd., is a sub-sub-subcontractor from the recipient business's point of view, the

contracted amount does not need to be indicated.

Implementation structure diagram

(outsourcing/subcontracting agreements in amounts of 1 million yen or more, tax included)

Recipient business Subcontractors Sub-subcontractors Sub-sub-subcontractors

XX Center

Foundation

A Research

Institute Co., Ltd.

B Research

Institute Co., Ltd.

D Trading Co., Ltd.

C Consulting Co.,

Ltd.

E Center Co., Ltd.

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[4. Application procedures]

4-1. Application period

Applications accepted beginning: Monday, April 15, 2019

Deadline: Must be received by 12:00 noon on Friday, June 14, 2019

4-2. Briefing

Date and time: 2:00–3:00 p.m., Thursday, April 25, 2019

Location: Meeting Room no. 525, F5E, Ministry of Economy, Trade and Industry Annex

If you would like to attend the briefing, please contact the contact point under "10. Where to

Direct Inquiries" by 6:00 p.m. Tuesday, April 23.

When doing so, be sure to use the email subject line "Registration to attend Program to

Support Development of Innovative Nuclear Power Technologies in Response to Society's

Needs briefing" and clearly indicate in the body of the message the name of your affiliated

organization, the names of the persons attending (furigana), their affiliations (section names),

and your telephone number, fax number, and email address.

Because of venue limitations, the number of briefing attendees from each applicant is

restricted to no more than two persons. When multiple organizations plan to apply jointly, the

organizations are considered to constitute a single applicant, and no more than two persons

from that applicant may attend. Information on the briefing venue will be sent to the email

address registered. Note that if the number of attendees is large, the briefing may be held in

multiple sessions, and the schedule will be adjusted accordingly.

4-3. Application documents

(i) Submit 10 copies each of the following documents by post or other means enclosed in a single

envelope. Indicate in the address on the envelope "Application for Program to Support

Development of Innovative Nuclear Power Technologies in Response to Society's Needs.”

Also, send digital files of the following documents to [nuclear-tech-31@meti.go.jp]. When

doing so, be sure to use the subject line "Application for Program to Support Development of

Innovative Nuclear Power Technologies in Response to Society's Needs."

･ Application Form (Form 1)

･ Proposal (Form 2)

･ Summary of Proposal (Form 3)

･ Status of Compliance with Security-related Trade Controls (Form 4)

･ Overview of Company/Organization (Form 5)

･ Overview of Consortium (Form 6) *Only when applying as a consortium

･ Company outline and financial statements for three most recent years

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(ii) Application documents submitted will be used solely for purpose of selection for this

program.

Application documents will not be returned. While sufficient efforts will be made to protect

confidentiality, please note that accepted applications will be subject to disclosure of

information other than nonpublic information (such as personal information and information

that would be detrimental to the proper interests of a corporation) pursuant to the Act on Access

to Information Held by Administrative Organs (Act No. 42 of May 14, 1999).

(iii) The costs of preparation of the application documents and similar documents are not included in

the expenses. Also, the costs of the preparation of the written proposal will not be reimbursed,

regardless of whether or not the proposal is selected.

(iv) Since the content shown in the written proposal will serve as the basic policies for future

project implementation, please clearly describe only the items that are certain to be

implemented within the budget. Major changes to the content of the proposal made for the

applicant's own reasons, even after selection, will be grounds for deselection.

4-4. Where to submit the application documents

Submit the application documents to the following addresses by post, parcel delivery service,

in person, or other means, and by email.

Ministry of Economy, Trade and Industry, Agency for Natural Resources and Energy, Nuclear

Energy Policy Planning Division

1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901 Japan

Attn: Minohara, Kikuchi

Email: nuclear-tech-31@meti.go.jp

*Documents will not be accepted by fax. Any discrepancies in the documents will result in

elimination from screening. Please check the entry guidelines and other materials closely

before filling out the documents.

*Documents will not be accepted after the deadline. Since sending by post or similar means

may result in documents arriving after the deadline due to delivery conditions, be sure to

send them sufficiently in advance of the deadline.

[5. Screening and Selection]

5-1. Screening method

In principle, screening will be conducted based on the application documents. As necessary,

applicants may be asked to take part in hearings or on-site inspections or to submit additional

materials.

*Applicants will be notified of the details.

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5-2. Screening standards

Applications will be subjected to a general evaluation based on the following standards.

However, an application that fails to satisfy the Screening Standard (i) will not be adopted

regardless of its evaluation under the other standards.

① Does the application satisfy the requirements of 1-5 “Eligibility for Application"

under 1 “Program Overview"?

② Is the content of the proposal eligible for awarding the subsidy?

③ Does the content of the proposal match the purposes of the Program?

④ Are the project's implementation methods and schedule realistic?

⑤ Does the applicant have the funding capacity and fundraising ability necessary to

carry out the project?

⑥ Do the project's implementation methods demonstrate effective efforts to increase the

results of the project?

⑦ Does the applicant have adequate knowledge concerning the fields related to the

project?

⑧ Does the applicant have an implementation structure suited to the scale of the project

and other considerations to carry out the project smoothly?

⑨ Does the proposal demonstrate outstanding cost-performance? Also, have the

necessary expenses and cost items been estimated properly with consideration for

elimination of overages and shortages?

⑩ Have issues to be resolved in the future and practical (and quantitative, when

possible) goals for achievement been identified for the nuclear reactor technologies to

be implemented in the feasibility studies under this project?

Goals to be achieved regarding safety, reliability, and economic performance must be

identified as mandatory items. In addition, one or more goals to be achieved regarding

other topics, such as dynamism, diverse use of energy, sustainability, and

countermeasures against radioactive waste, must be identified as optional items. In

addition, applicants must consider and propose goals for achievement in light of this

Program's goal of implementing innovation in utilizing private sector ingenuity, as

described under 1-3 “Program Details." Some examples of goals for achievement

regarding individual topics are provided below. However, the topics and goals

presented herein are mere examples. All goals for achievement should be proposed for

screening based on the nature of the proposed technologies and the target deadlines

for practical implementation.

[Required items]

1) Safety and reliability

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Must employ outstanding safety features as technologies to contribute to further

increases in safety and reliability, such as passive safety features intended to

prevent damage to the reactor core.

2) Economic performance

Must employ practical cost-cutting measures, such as rational simplification of

machinery and equipment, and have a high degree of economic performance

under competitive conditions, such as liberalization of the electric power

market.

[Optional items]

3) Dynamism

Enables flexible operation in accordance with differences in conditions of

adoption, for example through load-frequency controls in response to changes

in output of renewable energy, and output adjustment in response to

fluctuations in demand and supply of electric power

4) Diverse use of energy

Enables the use of energy for purposes other than generating electric power, for

example, through the use of high-temperature steam or the production of

hydrogen, chemicals, or desalinated water using such steam

5) Effective use of resources

Enables the effective use of fuel resources, for example, through flexible

proliferation in accordance with society's needs in areas of energy demand and

supply and resource uncertainty

6) Countermeasures against radioactive wastes

Contributes to lessening the impact on the surrounding environment through means of

reducing volumes of high-level radioactive waste generated and shortening the

periods required for control of waste by reducing radioactive levels

7) Others

Makes it possible to achieve the Program objective to promote the development

of nuclear power technologies capable of responding to society's needs and

thereby to restore trust in nuclear power in Japan and to positively affect the

realization and progress of safe use of nuclear power in the future through

innovative technologies in areas other than those described under the items

above.

*In light of the intent of the Strategic Energy Plan to pursue various possibilities for

reducing reliance on carbon fuels, this Program may employ adjustments to ensure

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that proposals for similar reactors or proposals from a single recipient business do

not exceed a certain percentage of adopted projects in order to eliminate excessive

duplication (including duplication of trading partners involved in projects).

5-3. Decision on and notification of results of adoption

The applicants selected will be announced on the Ministry of Economy, Trade and Industry

website and notified individually.

[6. Decision to Award Subsidies]

The applicants selected shall submit the Subsidy Application to the Ministry of Economy,

Trade and Industry, after which the Ministry will send a Notice of Subsidy Award to the

applicants, and then the projects will begin. Expenses for ordering and other activities completed

prior to notice of the decision on awarding the subsidy will not be eligible for the subsidy.

There is a possibility that changes in project details and the structure, project scale, and

monetary amounts may arise through negotiations with the Ministry of Economy, Trade and

Industry during the period between the selection decision and the decision on awarding the

subsidy. Also, note that in some cases it may not be possible to make a decision on awarding a

subsidy if the conditions for awarding the subsidy are not satisfied.

A recipient business may be provided with information or other materials necessary for project

implementation after the decision on awarding the subsidy. Depending on its content, the

recipient business may be asked to keep such information confidential.

[7. Recording of Expenses Subject to the subsidy]

7-1. Categories of subject expenses

Expenses subject to this Program are those necessary directly in the execution of the project

and those necessary to complete the project's results. Specifically, these consist of the following

expenses.

Expense item Details

I. Labor costs Labor costs of those directly involved in the project for time worked

directly on the project

II. Business

expenses

Travel expenses Costs related to domestic and international business travel needed to

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execute the project

Meeting expenses Costs required for meetings, lectures, and symposia needed to execute

the project (e.g., rent on venues, rent on machinery and equipment and

refreshment costs)

Honoraria Honoraria needed to execute the project (e.g., honoraria paid to outside

experts and others participating in meetings, lectures, and symposia or

to those engaged in activities, such as lecturing, preparation of

manuscripts, or joint research)

Supply costs Costs required for purchase or manufacture of items needed to execute

the project (only those for which it can be confirmed that they are used

continually for a period of one year or longer and solely for purpose of

the project)

(Rents) Costs of leasing and rental of machinery and tools needed to execute

the project

Consumables costs Costs required to purchase items needed to execute the project not

included under supply costs (only those for which it can be confirmed

that they are used for purposes of the project only)

Outsourcing costs Expenses needed for execution of activities outsourced to other

businesses because the recipient business cannot execute them directly,

or it would not be appropriate for it to do so (outsourcing agreements)

Printing and

binding costs

Costs related to printing and binding of pamphlets, leaflets, reports on

project results, and outer printed materials used in the project

Assistant labor

costs

Costs related to assistant personnel (e.g., temporary part-time workers)

needed to execute the project

Other

miscellaneous

expenses

Expenses needed to execute the project that cannot be included under

any other category (in principle, only those for which it can be

identified and confirmed that they were used for purposes of the

project)

Examples:

- Telecommunications and shipping expenses (postal charges, shipping

charges, telecommunications and telephone charges)

- Utilities (electricity, water, gas; when charges for use by the project

can be calculated, for example through exclusive meters in the case

of a large-scale research facility)

- Facility maintenance and repair costs

- Translation, interpretation, and stenography costs

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- Costs of purchase of literature, legal inspection costs, licensing costs,

and the costs related to patent applications

III. Subcontracting

costs

Expenses needed for execution of activities subcontracted to other

businesses because the recipient business cannot execute them directly,

or it would not be appropriate for it to do so (subcontracting

agreements)

*Each of the items above may include expenses directly necessary to carrying out scientific and

technological public dialogs.

7-2. Expenses that may not be recorded as direct expenses

･ Expenses related to buildings and similar facilities

･ Machinery and supplies that should be prepared as a matter of course in light of the content of the

project (e.g. desks, chairs, bookshelves, and other fixtures, or office machines)

･ Expenses incurred in response to accidents or disasters occurring during project implementation

(however, consult with the staff responsible regarding expenses, such as cancellation charges

arising for reasons for which the recipient business is not responsible, since in some cases these

may be recorded as direct expenses)

･ Other expenses not related to the project

7-3. Deduction of the amount of consumption tax from expenses subject to the subsidy

If the subsidy amount includes national and/or local consumption tax (hereinafter

"consumption tax"), then a final report of national and/or local consumption tax is required under

the Payment Guidelines. This is intended to prevent cases of recipient businesses retaining on

hold the portion of the subsidy allocated to the amount of consumption tax deducted from their

purchases through reporting such amounts on their consumption tax returns and requesting their

refunding.

However, the above report is based on the final return filed after settlement of the subsidy. In

light of the fact that cases of forgetting to report have been identified and to avoid complicated

administrative procedures on the part of the recipient business, the following handling will be

employed.

At the stage of calculating the amount of the subsidiary applied for using the subsidy

application, calculate the subsidy amount on the subsidy application to be submitted by deducting

consumption tax from the expenses subject to the subsidy.

However, the recipient businesses described below may calculate the subsidy amount by

including consumption tax in the expenses subject to the subsidy to avoid possible impediments

to execution of the subsidized project.

(i) Recipient businesses not obligated to pay consumption tax under the Consumption Tax Act

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(ii) Recipient businesses exempted from consumption tax

(iii) Recipient businesses employing the simplified taxation method

(iv) Recipient businesses that are national or local public agencies (only those employing

special accounting) or corporations as described under Annex 3 to the Consumption Tax Act

(v) Recipient businesses that are national or local public agencies employing general

accounting

(vi) Recipient businesses that are subject to consumption tax but choose refunds after finalizing

the amounts of consumption tax deducted from purchases for reasons of low rates of taxable sales

[8. Ascertaining the state of project implementation]

Progress will be checked periodically to ascertain the state of implementation of subsidized

projects.

[9. Other notes]

(i) In addition to the provisions of the Act on Regulation of Execution of Budget Pertaining to

Subsidies, the Payment Guidelines establish various forms for subsidy applications, project

interim and final procedures, and other matters. In addition, the Administrative Processing

Manual for Subsidized Projects describes basic matters for specific account processing for

recipient businesses after the decision on awarding a subsidy and materials to be readied in

preparation for finalization inspection. Recipient businesses are requested to check the content

of these after the decision on awarding the subsidy and before commencing the subsidized

project.

(ii) The Board of Audit of Japan may conduct an on-site inspection after completion of the

subsidized project.

[10. Where to direct inquiries]

Ministry of Economy, Trade and Industry, Agency for Natural Resources and Energy, Nuclear

Energy Policy Planning Division

1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901 Japan

Attn.: Minohara, Kikuchi

Fax: +81-3-3580-8447

Email: nuclear-tech-31@meti.go.jp

Please submit inquiries by email. Inquiries will not be accepted by telephone or fax. When

submitting an inquiry, be sure to use the subject line "Application for Program to Support

Development of Innovative Nuclear Power Technologies in Response to Society's Needs." In

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some cases, it might not be possible to reply to an inquiry made using another subject line.