Last Updated on April 27, 2024 by SK ADVISORY INC
At the time of imports, basically the following taxes are imposed:
Customs Duty
Calculated based on the tariff rate of the import declaration value, which differs by HS code. Check tariff rates at Japan Customs Duty Tariff Rates: Japan Customs Duty Tariff Rates. The importer is responsible for paying the tariff on the declared value.
Customs Duty = Customs Valuation x Duty Rate
The basic concept of Customs Valuation is in line with WTO standards. The Customs value of imported goods shall be the transaction value, that is, the price actually paid or payable by the buyer, plus additional costs, for instance, freight (to the imported port), insurance, and some sort of loyalty paid by the importer to exporter, etc.
On the one hand, the Duty Rate determines by the HS code. A major way of reducing the duty rate is to utilize FTA. In recent, thanks to the Japanese Government’s expansion strategy regarding Free Trade, the number of FTAs surrounding Japan has been steadily increased. There should be many cost-saving opportunities by taking advantage of FTA.
Japan Consumption Tax (JCT)
JCT is set at a fixed rate of 10%. JCT is calculated as 10% of the total import declaration value plus customs duty. For more detailed information about JCT, please visit our webpage: Consumption Tax.
Regarding JCT, if your company is a JCT registerd entity, you have the option to deduct the input-JCT (import JCT) from the output-JCT (the amount collected from customers, equivalent to 10% of the sales price) during periodic JCT tax filing. Therefore, in this case, the import JCT is not considered as a cost of goods but rather a matter of cash flow management.
*Note: Deduction of import JCT for JCT Tax filing is only available to the Importer of Record (IOR). Thus, becoming an IOR through an ACP is crucial.
Attorney for Customs Procedures and Importer of Recprd
Japan Consumption Tax Compliance / Import Consumption Tax Deduction and Refund / JCT Obligations for Foreign Corporations / New Japan Qualified Invoice System
FTA, Customs and International Trade Advisory Services
Japan Customs: https://www.customs.go.jp/english/summary/tariff.htm
Our Customers - Japan IOR / Attorney for Customs Procedures (ACP) Service
All our clients have successfully become Japan Importer of Record (IOR) and imported goods into Japan 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. As Attorneys for Customs Procedures (ACP), we represent non-resident clients (IOR) and coordinate with these logistics companies, who manage the transportation of goods to and from Japan.
