Govt May Revise Law to Allow Export of Defense Equipment for Free

Courtesy of the Maritime Self-Defense Force
An Abukuma-class destroyer

The government has begun considering a revision to the Self-Defense Forces Law that would allow used defense equipment with lethal or destructive capabilities to be exported free of charge or at a low cost, government sources have said.

A primary example under consideration is the potential export of destroyers to the Philippines. With China continuing its aggressive maritime expansion, the government aims to strengthen cooperation with like-minded nations to enhance deterrence.

The government plans to explicitly state the necessity of allowing the exports in three security documents that will be revised by the end of this year, including the National Security Strategy. The government aims to revise the Self-Defense Forces Law during next year’s ordinary Diet session.

Defense Minister Shinjiro Koizumi is scheduled to visit the Philippines and Indonesia in May during the Golden Week holiday period to discuss the export.

Under the Public Finance Law, defense equipment is regarded as state property even after it has been used. Therefore, it cannot be provided free of charge or at a low cost. Article 116-3 of the current Self-Defense Forces Law stipulates that used items may be transferred to governments in developing regions at prices below market value, but this is limited to non-lethal equipment such as helmets and excludes weapons and ammunition, including destroyers.

On Tuesday, the government revised the operational guidelines for the Three Principles on Defense Equipment Transfer to set forth the rules for overseas exports of defense equipment, in principle allowing the export of weapons with lethal of destructive capabilities.

The Philippines and Indonesia are among 17 countries eligible for such exports.

In conjunction with Tuesday’s revision, a growing number of voices have said that legislative revision is necessary to allow the exports to go through.

Enhancing the defense capabilities of like-minded nations by providing them with equipment no longer used by the Self-Defense Forces is expected to boost deterrence and response capabilities on both sides, leading to greater stability in the regional security environment.

Courtesy of the Maritime Self-Defense Force
An Oyashio-class submaine

Like-minded nations are showing keen interest in used SDF equipment. The Philippines is considering acquiring the Maritime Self-Defense Force’s Abukuma-class destroyers, which have been in service for over 30 years and are scheduled for phased retirement. If the used destroyers were exported, it would mark the first such case. Indonesia, likewise, is reportedly eager to acquire used Oyashio-class submarines.

However, a key challenge has been that “many countries lack the financial resources to purchase used equipment at high prices,” a senior Defense Ministry official said.

In preparation for the revision of the three documents, the Liberal Democratic Party has been compiling key points for its recommendations to the government, noting that “weapons from the Self-Defense Forces should be included as eligible for grant aid” with regard to used equipment.