WELCOME TO THE "HOW TO" START AN OFF-BASE/ON-BASE BUSINESS
20 March 2000

WHAT WE FOUND WHEN WE WENT TO START OUR OWN BUSINESS WAS A LOT OF REGULATIONS ... BELOW IS WHAT YOU NEED TO  START A BUSINESS IN YOUR HOME WHILE STATIONED ON OKINAWA.

 
REFERENCES TO CONSIDER
(A)   APPENDIX 3 OF ANNEX E TO MARINE CORPS BASES, JAPAN CINSOP DTD 1 AUGUST 1995 
(B)   USFJ Policy Letter 30-5, Commercial Activity and Private Employment 
(C)   AFR 9-1, Chapter 15, Housing Management 
 

 
GENERAL INFORMATION
1.   Off-duty and off-base employment in the Japanese economy is regulated by the Status of Forces Agreement between the U.S. and Japan.  To  protect the interests of the U.S. and individuals who desire to work in the Japanese economy, the Commander, U.S. Forces, Japan has  established policies applicable to service members, civilian employees and dependents. The following are germane;  
  
      a.  Employment in the Japanese economy will not be permitted if it is detrimental to the best interests of the United States or is  contrary to the high standards of conduct desired of U.S. Forces personnel during off-duty hours.  
  
      b.  U.S. Forces personnel (service members, civilian employees and dependents) will not be permitted to engage in any activity  directly or indirectly connected with the manufacture, sale or solicitation of narcotics, drugs, prostitution, or any other commodity or service which might discredit or degrade the morals of members of the services on bring discredit upon them or the United States.  
  
      c.  U.S. Forces personnel will not be permitted to find employment with, or to engage in the actual operation or management of, any  institution or establishment which purveys or barters alcoholic beverages to the Japanese public. This prohibition does not apply to eating facilities in which alcohol is served as an accompaniment to food service.  
  
      d.  U.S. Forces personnel will not appear in television or radio programs, commercials, stage plays or motion pictures; make  recordings; or engage in other public entertainment without specific prior approval by the Commanding General, Marine Corps Base, Camp  Smedley D. Butler.  
  
      e.  The sale of real estate, stocks, bonds, insurance, securities and/or mutual fund shares will not be permitted unless the applicant submits satisfactory evidence that he has been licensed to engage in such activity by an appropriate authority of a state or territory of the United States or the District of Columbia, as well as by the appropriate authority of the government of Japan.  
  
      f.   Personnel employed as public entertainers will not wear the military uniform and will not make reference to their service  affiliation, rank, and organization in any manner whatsoever. This paragraph does not apply if the entertainment or public appearance is  sponsored by an organization of the U.S. Forces.  
 
 
ACTUALLY STARTING THE BUSINESS ON BASE
2.   Running a business from your on-base quarters is permissible per the guidance of reference (b).  If you live off base, your lease must  permit you to run a business from your quarters.  There are several rules that persons covered by the Status of Forces Agreement (SOFA) on  Okinawa should understand before starting a business:  
  
      a.  You must get approval before you start your business.  You do this by picking up a Notification of Intent Package at the Base  Staff Judge Advocates Office, located at Bldg #1, Camp Foster.  Once you completely fill out and sign the prescribed pages, you then obtain  approval from your OIC.  Return the package to the Staff Judge Advocate's Office and await approval.  Dependent and Civilian SOFA status personnel need not obtain approval from a supervisor.  
  
      b.  For those who wish to run a business from base quarters, you also need approval from the Kadena Housing Office.  You would pick up and return the completed package at the Housing Office. The Housing Office would then forward it to the Base Staff Judge Advocate with their approval/disapproval.  
  
      c.  Additionally, you must comply with the Standards of Conduct set forth in the DoD Joint Ethics Regulation. Of particular note is the prohibition on soliciting sales from those who work under your supervision or those who are subordinate in rank.  
  
      d.  You cannot use items purchased from the commissary or the BX/PX in your business. However, it does not preclude you from putting  your services into items purchased from the commissary or BX/PX. For example, if your client or customer supplies you with material they purchased from the BX/PX for you to make a dress, you may make the dress and charge for your labor.  
  
      e.  You cannot use the Military Postal Service (MPS) to bring in items for your business.  Military postal regulations prohibit the use of MPS in connection with one's personal business. There are two caveats regarding this prohibition. First, you may receive samples or prototypes that you will not sell as part of your business. Also, you may take orders from a parent company in the Continental U.S. who will ship the product directly to your customer's FPO address (for example Tupperware). Finally, nothing prohibits you from having items mailed  
to you at at an off-base address via the Japanese postal system.  
  
      f.  You must obtain appropriate licenses and permits to operate your business. Sales of insurance and securities requires licensing.  Sales of food from your home require an inspection and food handler's card from the Base Environmental Health Section. You should also be  aware that the Base Housing Office may charge you for the electricity or water consumed by your business. Utility usage must not be excessive.  
  
      g.  You may not advertise or place signs on military family housing units, operate a showroom in a military family housing unit  or make modifications or improvements to such a unit without prior approval. You must ensure that other tenants parking places are not used.  Also, the customer traffic must not disturb the quiet enjoyment of your neighbors.  
  
      h.  Under the current policy of the Government of Japan, persons with SOFA status are not authorized to conduct business with Japanese Nationals. You may freely conduct business with SOFA status personnel; however, you may need a business visa to conduct business with Japanese Nationals.  Without this business visa, you may be in violation of the SOFA and deportable from Japan (regardless of your connection 
with the United States Military).  
 
WHO ARE YOU GOING TO CALL?
 3.     Persons with questions about these rules should contact their Commanding Officer or the office of the Staff Judge Advocate, Marine Corps Base, Camp Smedley D. Butler after you arrive on Okinawa.  
 
MAKE SURE YOU DO IT RIGHT THE FIRST TIME...
 4.     Before beginning any work in the Japanese economy, all individuals must request permission from or notify, as appropriate, the Commanding General, Marine Corps Base, Camp Smedley D. Butler (Staff Judge Advocate).  See Appendix 1 and 2 to Annex 1 and 2 to Annex E of  MCBJ ClNSOP.  
 

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