The rules of the Agreement for eliminating dual coverage described in RS 02002.055 through RS 02002.085 cover the great majority of situations where the United States and Japan would both cover and tax a worker in the absence of an Agreement. However, sometimes the application of the Agreement rules would yield anomalous or inequitable results. For this reason, the Agreement includes a provision that permits the authorities in both countries to grant exceptions to the normal coverage rules of the Agreement if both sides agree.

The intent of the special exception provision is not to provide the freedom to elect coverage in conflict with normal Agreement rules. The purpose of the special exception provision is to allow the worker to continue coverage in the country where the worker normally works and has coverage, in order to ensure that the worker will meet the eligibility requirements for retirement or disability benefits.

An employee, employer or self-employed person may request a special exception to the normal coverage rules of the Agreement. Both countries must agree to the special exception and agree on the country of coverage. If either country does not agree with the proposed exception, the applicable coverage rule of the Agreement determines the worker’s coverage.

An employee, employer, or self-employed person who wishes to apply for a special exception writes to the designated agency in the country where the worker wishes to remain covered.

The letter should:

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  Provide all of the information necessary to issue a certificate of coverage under the U.S.- Japanese Agreement; and

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  Explain the reasons why the special exception should be granted.

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  RS 02002.095, Certificates of Coverage Under the Agreement with Japan.