it sure sounds like "papers" to me, especially in the context of being legally owned. Stevens post said nothing about appraisal certificates.
"Only a papered sword may be legally owned in Japan."
Here are the specifics for anyone interested:
In order to legally own a sword in Japan it has to be registered in accordance with the Ju-tô-hô (Japanese Firearms and Sword Law). This applies to both antique and newly made swords(Shinsakutô). Exempted are blades under 15 cm (5.9 inches), and Iaitô / Mogitô (training)and decorative swords made from a zinc-aluminum alloy that can't be sharpened). Presently about 2.3 million swords are registered in Japan.
The certificate / license issued - Juhô-tôken-rui-tôrokushô -(in short"Tôrokushô") has to stay with the sword at all times. Most collectors attach it to theShirasaya-bukoro or Koshirae-bukoro (storage bags). It's the blade that is registered, not the owner; however, the Prefectural Education Board (Kyôiku-inkai) has to be notified within 20 days if there is a change of ownership, using the Shoyûsha-henkô-todokesho form.
Licensing is done by the Education Board at a Tôroku-shinsa-kaijô (sword evaluation meeting), which usually takes place once a month. The judges conducting the Shinsa are sword experts contracted by the Education Board, usually senior members of the local NBTHK branch (Nippon Bijutsu Tôken Hozon Kyôkai= Society for the preservation of the Japanese Art Sword).
If someone who lives in Japan finds an unregistered sword (which happens surprisingly often, for instance after the death of a family member who hid it after the war, or when an old house is torn
down), the finder has to contact the crime-prevention section of the district police (Keisatsu-shobohan-ka). There a Hakken-todoke is issued to enable the finder to attend the Tôroku-shinsa.
It should be noted that the Tôrokushô is not a certificate of authenticity; only the length, Sori, number of Mekugi-ana and the Mei (name inscribed) are stated, whether it's authentic (Shôshin
) or false (Gimei).
Only traditionally made Nihontô can be licensed, i.e. swords made in Japan from Tamahagane (and Shintô swords that are inscribed "Motte Namban-Tesu " ["made using steel
from the southern barbarians"]). This means in effect that it has to be either an antique, or made by a contemporary, licensed smith. Mass produced WWII swords (so called Shôwatô昭和刀

and foreign made swords are not eligible for Tôrokushô.
It is the word "shinsa" that is confusing, as it is used for both "Tôrokushô" issue AND for "Kanteisho".
Best Regards,
STeven Garsson