1. The first subject of this issue is wheelchairs, which comprise one of the more expensive items of equipments used by persons in need of care. Wheelchairs are essential pieces of equipment for the physically disabled, invalids and persons who have trouble walking due to old age, and the number of persons using or requiring wheelchairs in Japan, with its rapidly graying population, looks set to climb in the years ahead.
   
   
2. The various kinds of wheelchairs available can be broadly classified into two types: hand-powered or manual wheelchairs, and electrically powered wheelchairs. Manual wheelchairs include wheelchairs pushed by hand (with the help of an assistant), travel (front-wheel drive) chairs, standard (rear-wheel drive) chairs, chairs operated one-handed, chairs operated using one leg, wheelchairs pedaled one-handed, three-wheeled chairs, standing-up chairs, seat lifting chairs, and highly-maneuverable chairs designed especially for use in sports such as basketball and marathons. Manual wheelchairs are manufactured and distributed by companies such as wholesalers specializing in medical equipment, bed makers and bicycle manufacturers. Powered wheelchairs are more high-priced, and are made by manufacturers such as automakers.
   
   
3. According to statistics compiled by the Japan Wheelchair Manufacturers' Association, demand for wheelchairs in Japan between fiscal 1995 and 1997 was as follows:

   	FY95 (Apr-Mar)	FY96	FY97
   Manual wheelchairs (Japanese-made)	157,031	185,667	244,100
   (imported)	52,323	78,599	94,308
   Powered wheelchairs (Japanese-made)	12,550	12,875	15,500
   (imported)	5,672	7,548	5,422
   Total (Japanese-made)	169,581	198,542	259,600
   Total (imported)	57,995	86,147	99,730
   Grand total	227,576	284,689	359,330
   Import share	25.5%	30.3%	27.8%

   Total demand (i.e. Japanese-made wheelchairs plus imports) in fiscal year 1998 (April-March) is estimated to have exceeded 400,000 pcs.

4. Wheelchairs are basically means of movement for persons with physical disabilities. As a result of the aging of society in recent years and the development of the infrastructure, social and psychological barriers faced by the disabled are being eroded, people are growing increasingly willing to go out by wheelchair, and the number of wheelchair users is growing.
   
   
5. As the above figures show, the level of imports is increasing year by year. Practically no Japanese wheelchair makers have expanded overseas, however, and in most cases imported wheelchairs are manufactured overseas on an OEM basis. OEM production has been especially high in Taiwan over the past decade or so. Imports from Europe and North America are generally high-priced products.
   
   
6. Imports of finished wheelchairs, parts and accessories between 1996 and 1998 were as follows:

   	1996		1997		1998
   	Value	Quantity	Value	Quantity	Value	Quantity
   Finished wheelchairs (pcs)	1,922	79,012	2,325	100,081	2,555	112,233
   Manual wheelchairs	1,405	71,070	1,883	94,859	2,063	106,524
   Powered wheelchairs	517	7,942	442	5,222	492	5,709
   Parts/accessories (tons)	369	229	525	321	541	295

   Source: Japan Trade Monthly, Unit: million yen

7. Imports in 1998 by source were as follows:
   1. Manual wheelchairs

      	Quantity	Value
      Taiwan	54,838 pcs	\947,151,000 (45.9%)
      South Korea	27,847	\505,977,000 (24.5%)
      U.S.A	3,016	\246,903,000 (12.0%)
      China	17,111	\182,539,000 (8.8%)
      Sweden	2,708	\82,805,000 (4.0%)
      Germany	416	\45,602,000 (2.2%)
      Denmark	345	\34,713,000 (1.7%)
      Others	243	\17,796,000 (0.9%)
      Total	106,524	\2,063,486,000 (100%)

   2. Powered wheelchairs

      Taiwan	2,879 pcs	\233,071,000 (47.4%)
      U.S.A.	379	\108,561,000 (22.1%)
      South Korea	1,466	\84,020,000 (17.1%)
      Germany	43	\16,621,000 (3.4%)
      China	710	\14,661,000 (3.0%)
      Others	232	\34,773,000 (7.0%)
      Total	5,709	\491,707,000 (100%)

   3. Parts and accessories

      Taiwan	162 tons	\201,077,000 (37.2%)
      South Korea	95	\149,065,000 (27.6%)
      U.S.A.	34	\147,703,000 (27.3%)
      Germany	2	\11,516,000 (2.1%)
      Others	2	\31,258,000 (5.8%)
      Total	295	\540,619,000 (100%)

      Source: Japan Trade Monthly
      
      
8. Imported parts and accessories are used either for repairing finished products or as parts for domestically-made wheelchairs.
   
   
9. As the following figures indicate, just a fraction of domestic produce is destined for export:

   	1996		1997		1998
   	Value	Quantity	Value	Quantity
   Manual wheelchairs	402 pcs	\23,532,000	738 pcs	\35,327,000
   Powered wheelchairs	1,185 pcs	\229,719,000	1,386 pcs	\238,022,000
   Parts and accessories	12,366 kg	\30,708,000	19,928 kg	\52,191,000

   Source: Japan Trade Monthly

   Manual wheelchairs are exported to countries such as Canada, South Korea, Hong Kong, Taiwan, China, Mozambique and Russia, while destinations for exports of powered wheelchairs include Germany, Canada, South Korea, Jordan and South Africa. Parts and accessories are exported to places such as South Korea and the U.S.A.

10. Wheelchairs reach users through two main routes. The first route is through the 2,000 social welfare offices around the country, which buy wheelchairs under the Law for the Welfare of the Physically Handicapped. The Ministry of Health and Welfare has the final say over these purchases, which account for around 40% of total demand. Most of these wheelchairs are manual wheelchairs priced at \80,000~90,000 a piece that need to be fitted for individual users. The other route is through distribution channels for medical equipment. These chairs, which account for some 60% of the market, are standard products for use in places such as hospitals, old people's homes, airports and railway stations, and for personal use. They are mainly cheaper products priced in the region of \40,000~50,000, and do not need to be customized for individual users.
    
    
11. Wheelchair sales routes include social welfare offices, department stores, specialist shops such as those marketing goods for persons in need of care, bicycle dealers, and mail-order firms.
    
    
12. There are no particular legal restrictions on imports. Some wheelchair parts, however, are covered by the High Pressure Gas Control Law. Although high-pressure gas is used for the lifting mechanism in lift chairs, most are exempt. In addition, rechargers imported for use in powered wheelchairs are classified as Class A electrical devices and are subject to the provisions of the Electrical Supplies Control Law, though this does not apply in the case of rechargers that are already built into wheelchairs.
    
    
13. Under the Law for the Welfare of the Physically Handicapped and the Child Welfare Law, wheelchairs provided at public expense must comply with JIS standards. Wheelchairs that are pushed manually are covered by the SG Mark system under the Consumer Product Safety Law, and must therefore be certified as SG Mark compatible by the Product Safety Association. The Japan Wheelchair Manufacturers' Association also has its own voluntary safety standards, but these do not apply to imports.
    
    
14. Finished wheelchairs are not imposed the consumption tax. 5% tax. For parts and accessories, 5% consumption tax is applied, however, no import duty.
    
    
15. Wheelchairs are being made lighter to make them easier to carry around and load into cars. Stainless steel products weigh 20kg, aluminum alloy ones weigh 12-13kg, and titanium ones weigh 7kg. Plastic wheelchairs reinforced with carbon fiber are even lighter. Imports tend to be colorful models and sports types aimed at younger users. All are ready made rather than made to order.
    
    
16. The Japan Wheelchair Manufacturers' Association takes out product liability insurance, and automakers, bicycle manufacturers and other wheelchair makers take out product liability on an individual basis. Fortunately, however, there have to date been practically no claims.
    
    
17. In the city of Osaka, the health and welfare services divisions in each ward, which serve as the local secretariats for the Council of Groups for the Physically Handicapped, keep wheelchairs for loan. Applications for the use of wheelchairs are made to the division director, whose decision it is to determine whether the applicant is eligible. Equipment is loaned for free for six months, but wheelchairs may be loaned for longer where deemed necessary if a renewal application is received at least one week prior to the end of the initial loan period. This system may change with the introduction of the Public Nursing Care Insurance System in April 2000.
    
    
18. The growing number of elderly persons will cause demand for wheelchairs, and manual ones in particular, to continue to climb. In addition, when wheelchair rental becomes the core form of demand with the introduction of the Public Nursing Care Insurance System, there will probably be a temporary leap in demand in terms of volume. At the same time, price competition will likely grow more severe, and non-price competition through factors such as design will increase as makers attempt to differentiate their products from those of competitors. It is also expected that competition in the high-priced powered wheelchair market will bring down prices and cause demand to surge.

Acknowledgment: We gratefully acknowledge the assistance of Mr. Ichiro Kawamura, President of Kawamura-Gishi Co., Ltd., in the preparation of this article.