Conditions for Becoming an Importer of Record (IOR) in Japan

Last Updated on January 2, 2025 by SK ADVISORY INC

In Japan, the Customs Act defines the criteria for who can become an Importer of Record (IOR). With the revision of the Customs Act Basic Notice in October 2023, the conditions for becoming an importer have been further tightened. As a result, it has become difficult for foreign corporations without an office in Japan to designate another third party Japanese entity as the nominal importer. Instead, there is an increasing number of cases where foreign corporations must become importers themselves by utilizing an Attorney for Customs Procedures (ACP).

 

Definition of an Importer

According to Customs Act Basic Notice 6-1, an importer is defined as follows:

Customs Act Basic Notice 6-1
The interpretation of terms related to taxpayers as stipulated in Article 6 of the Act is as follows:
(1) "Person who imports goods" refers, in principle, to the Consignee listed on the invoice (or the bill of lading if there is no invoice) for goods imported through a "Import Transaction" (as defined in Article 4, Paragraph 1 of the Customs Tariff Act). 

 

This indicates that when there is an "Import Transaction," the consignee is typically recognized as the importer. The term "Import Transaction" is defined in the Customs Tariff Act as follows:

 

A transaction conducted between a seller and a buyer who has a base (address, residence, head office, branch office, office, place of business, or equivalent) in Japan, with the purpose of bringing goods into Japan, resulting in the actual arrival of the goods in Japan.

 

Typically, when a buy/sell transaction meets this definition, the consignee becomes the importer. However, the receiver of the goods does not necessarily have to be the consignee = importer.

For example, in cases where we act as an Attorney for Customs Procedures (ACP), if goods are sent to a Japanese buyer through a transaction between a foreign seller and a Japanese buyer, but the Japanese buyer does not become the importer due to contractual reasons, the foreign seller can become the importer (using ACP). The foreign seller then imports the goods and subsequently sells them within Japan.

However, it is not straightforward for a foreign seller to get approval from Japan Customs as the importer in B2B transactions. The ACP must use specialized knowledge and legal reasoning to explain the situation to customs authorities and obtain approval.

 

Cases That Do Not Qualify as "Import Transactions"

Upon reviewing the definition of "import transaction," it becomes clear that it is limited to transactions where the buyer has a base in Japan. Therefore, transactions where a foreign corporation without a base in Japan purchases goods overseas and sends them to Japan, or imports through transactions without a sale, do not qualify as "Import Transactions." In such cases, the conditions for becoming an importer are defined as follows:

 

Customs Act Basic Notice 67-3-3-2
The definition of "person intending to import goods" as stipulated in Article 59, Paragraph 1, Item 1 of the Ordinance is as follows:

1. For goods imported through an import transaction, the definition is the same as "person who imports goods" as stipulated in 6-1(1) above.
2. In cases other than those in (1) above, the person who has the authority to dispose of the imported goods after domestic clearance at the time of the import declaration, including any other person involved in the import for the intended purpose. Examples of such persons include:
   • A person who leases and uses goods imported under a lease agreement.
   • A person who sells goods imported for consignment sales under their own name.
   • A person who processes or repairs goods imported for that purpose.
   • A person who destroys goods imported for that purpose.

It is important to note that the "person intending to import goods" is liable for paying the applicable customs duties under Article 6 of the Act.

 

Thus, even in cases that do not qualify as "Import Transactions," a person who has the authority to dispose of the imported goods can be recognized as the importer. Many of the foreign corporations we support as ACP are recognized as importers because they have the authority to dispose of the goods. 

 

 

 

 

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.