Amazon Won't Become Japan IOR - Importer of Record | SK Advisory - Japan ACP

In fact, many Amazon FBA sellers make a mistake by appointing Amazon as the Japan IOR (Importer of Record) for their shipment... FBA sellers export by writing Amazon’s name in the IOR or Consignee in the shipping documents including invoice. This is the most frequent mistake we observe in practice. Please be careful, Amazon officially states that they won’t become an IOR in Japan.

What would happen if Amazon sellers appoint Amazon Japan as the IOR

Let’s look at the scenario if Amazon sellers ship their inventory to Japan by appointing Amazon Japan as the IOR. In the country where you’re making a shipment, the logistics providers do not know well about the trade restrictions in Japan side. Therefore, the logistics providers the Amazon sellers use don’t stop your export procedure, even if you write Amazon Japan as IOR in the invoice. However, most logistics providers in Japan know that Amazon Japan won’t be the IOR. So, after the goods arrive in Japan, the logistics providers on the Japanese side, start saying that your goods can’t proceed with import clearance. In many cases, the logistics providers are trying to ship back the goods to your place. And you need to pay for the unnecessary shipping fees. If your designated logistics provider is kind, they would instruct you that you need to find an ACP. But they can store your goods only for a short period.

We can support your urgent request, but better to prepare beforehand

In this way, our company often receives an urgent requests from Amazon FBA sellers. The sellers often tell us that the inventories are stuck in Japan Customs because of the wrong information of IOR. Our company can help such a situation, by promptly proceeding with ACP registration as well as making communication with the logistics provider to wait for the registration process to ensure that they won’t ship back the goods to sellers. But of course, it’s better to properly appoint an ACP or IOR before shipment, so that you don’t have to worry about the ship back issues.

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR - Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR - Importer of Record.

Basic Scope of Services:

Consultation with the Japan Customs Office for successful ACP registration.
Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
Assistance in preparing the necessary documentation for import clearance.
Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
Documents keeping, required under article 95 - Japan Customs Law
Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

Three Steps to Initiate Shipments Under the ACP Program: :

Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
Initiation of First Shipment, Import/Export

Japanese Customs System Reform: Clarification of Importer Definitions

Starting October 1, 2023, Japanese Customs has instituted a pivotal reform aimed at addressing the issue of foreign sellers improperly designating third parties (such as forwarders or customs agents) as importers.

This revision necessitates foreign corporations to utilize an Attorney for Customs Procedures (ACP) to assume the role of Importer of Record (IOR) directly in many cases. The practice of merely nominally appointing another entity as the importer is no longer feasible.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

Revisions Effective October 1, 2023:

Definition of the Importer

Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act. ..... This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

In case of a cargo imported:
- under lease contracts, a person who rents and uses the cargo.
- for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
- for processing or repairing, a person who processes or repairs the cargo.
- for disposal, a person who disposes the cargo.

For additional information, please refer to the following resources:

Amazon's Frequently Asked Questions from Overseas Sellers

Q1: Can I register Amazon.co.jp as an importer of record when I export my products? A: No. Amazon cannot be an importer of record for FBA shipments. Please contact Japan Attorney for Customs Procedure (ACP). We have a list of 3rd party service providers who can help you with FBA shipments.

https://sellercentral.amazon.co.jp/gp/help/external/help.html?itemID=201984330&language=en_JP&ref=efph_201984330_relt_201468440

Please Be Aware

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 150 companies. We are committed to delivering industry-leading results with our expertise.

Why choose us?

We specialize in navigating complex issues at the intersection of customs procedures and taxation—an area where our ability to offer practical, comprehensive support from both perspectives sets us apart. Understanding the close relationship between customs duties and national taxes (especially, Japan Consumption Tax - JCT), and addressing both in an integrated manner, is crucial in the context of international trade.

Customs and International Trade Professionals - Led by our CEO, Mr. Sawada—Certified Customs Specialist and former KPMG professional—SK Advisory provides expert-level support in Customs and international trade.
Full Compliance with Japanese Customs Law - We ensure full adherence to Japanese Customs Law, including Importer of Record (IOR) structure, HS code classification, and customs valuation. We assist in preparing all essential shipping documents for non-resident entities.
One-Stop ACP and JCT Tax Representative Service - We offer a fully integrated service for both ACP and JCT Tax Representative needs. Our expertise enables efficient deduction or refund of import JCT through accurate JCT tax filings.
Multilingual Communication - Our team communicates fluently in English, Japanese, and Chinese, offering smooth coordination with global clients and authorities in Japan.
Support for Regulated Products - Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
Trusted by Global Clients - Serving around 100 ACP clients annually, including many Amazon sellers, we’re a certified provider on Amazon SPN (Service Provider Network) under Trade Compliance.

Our Customers - Attorney for Customs Procedures (ACP) Service

All our clients have successfully become Japan Importer of Record (IOR) and/or Exporter of Record (EOR) under our guidance.

Logistics Companies with Collaboration Experience

Here is a list of our partner logistics and forwarding companies with whom we have had successful collaborations. Please note that this list is not exhaustive, as we are open to working with any logistics or forwarding companies. For clients, we(SK Advisory) work as an Attorney for Customs Procedures (ACP), while the logistics companies manage forwarding, logistics, customs clearance and warehousing operations.