Morgan Stanley
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Japan to End Ban on Resale of Used Goods

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Posted 27 March 2006 @ 03:05 pm GMT

Japan will effectively scrap a ban on the sale of used appliances after receiving a barrage of protests from musicians and dealers of second-hand goods.

The ban, scheduled to take effect April 1, prohibits retailers from selling 450 products such as TVs, audio-visual equipment and electric musical instruments made before 2001, when new product safety rules were introduced.

But second-hand dealers argued they would be driven out of business, and musicians claimed the law would dissuade young people from learning and would stifle creativity, as turntables and other used gadgets are important tools.

So the Trade Ministry on Monday reinterpreted the law to let used goods sellers circumvent the ban. Trade Ministry official Kazuhisa Kakui said electric appliances could be sold after April 1 by classifying the transactions as rentals rather than sales.

Products such as personal computers and portable digital music players are unaffected by the law because they are regulated under separate safety standards.

Easing the ban won't compromise consumer safety, Kakui said, adding that the ministry wasn't giving into opponents' demands.

"We're just pointing out there are ways to do business even after the law comes into effect," Kakui said.

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