Export Compliance Daily is a Warren News publication.

Japan Hasn't Approved Hydrogen Fluoride Export in Three Months, South Korea Says

Japan has not issued a “single export approval” for hydrogen fluoride to South Korea in three months, South Korea said, saying Japan’s export restrictions are increasing supply chain uncertainties and damaging companies. “Japan’s export restrictions are an unfair and discriminatory export-restrictive measure that is directed only and unilaterally against Korea,” South Korea said in an Oct. 1 statement.

Sign up for a free preview to unlock the rest of this article

Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.

Just days ago Japan’s Ministry of Economy, Trade and Industry refuted media reports that said the country stopped all exports of hydrogen fluoride to South Korea (see 1909270035). But South Korea suggested the reports were true, adding that Japan has placed an unfair burden on exporters to South Korea, who have to submit nine documents to receive a license for certain products “in the same manner as countries subject to a [United Nations] arms embargo.”

“Despite the passing of almost 90 days since Japanese exporters submitted an application for this item, however, not a single export approval has been issued due to repeated requests for additional documents,” South Korea said. The country also said Japan is approving exports of its three restricted chemicals -- fluorinated polyimide, resist, and hydrogen fluoride (see 1907010020) -- on “individual license only.”

“This is in fact a more discriminatory form of system than that is applied even to other countries that have not joined the four multilateral export control regimes,” South Korea said.

Japan’s restrictions are not in compliance with World Trade Organization regulations, South Korea said, and “run counter to the basic spirit and principles of the international export control systems.” Trade of “key materials” should be allowed “based upon contracts signed freely between companies,” South Korea said.

South Korea said it has made “continuous” requests to negotiate with Japan during the last three months but “has yet to receive any response.”

South Korean Foreign Minister Kang Kyung-wha said she recently met with newly appointed Japanese Foreign Minister Toshimitsu Motegi and that the meeting was “cordial” and “forthcoming.” But the two sides have “big disagreements” to overcome, she said in an interview with Bloomberg released by South Korea’s Ministry of Foreign Affairs.

Kang said trilateral negotiations among Japan, South Korea and the U.S. are “very necessary,” adding that the U.S. “may not be playing a role visibly but it certainly is doing what it can to keep the trilateral security alliance strong.” Former U.S. National Security Adviser John Bolton said the U.S. should be doing more to help South Korea and Japan find a solution.