Goods imported into Japan are subject to consumption tax and customs duty. Consumption tax is imposed at the rate of 8%, in general, on all goods imported into or manufactured in Japan.
How is consumption tax calculated on imports?
Consumption tax is calculated with a valuation method known as CIF which stands for Cost, Insurance and Freight. Basically, consumption tax and also import duty are calculated on the complete shipping value of the inventory you are shipping to Amazon Japan – the cost of the imported goods, the cost of freight, and the cost of any insurance.
What is the rate of Duty?
Duty rates in Japan vary from 0% to 30%, with the average duty rate at 4.49%. Some duties are based on quantity in addition to CIF. Some products can be imported free of duty such as books, laptops, and other electronic products, while imports of alcohol, tobacco and fuel products will incur a excise duty.
You can find import duty rates at the Japanese Customs website.
How Do You Pay Consumption Tax?
Consumption tax must be paid to clear customs at the time of import. The best way for you to pay consumption tax is to ship your inventory Delivered Duty Paid. That way you, the shipper, will automatically be charge the consumption tax, and your inventory will clear customs quickly. In most cases your supplier or freight company will make the payment on your behalf when you ship Delivered Duty Paid.
Note: Delivered Duty Paid (DDP) are the required incoterms (International Commercial Terms ) when shipping your goods to an Amazon FC in Japan from abroad. You must confirm with your shipping carrier that they accept DDP shipment.
When can Consumption Tax be waived?
Consumption Tax and duty is not charged if:
- the CIF value does not exceed JPY10,000
- the amount of consumption tax payable does not exceed JPY100
Samples are also eligible for duty-free entry, provided they meet the following criteria:
– the total customs value should be JPY 5,000 or less.
– the words ‘sample, not for resale’ should be written on the commercial invoice.
– the goods should be marked so that they can only be used as samples and not be sold.
Are you ready to ship to Japan and need an Importer of Record?
We can help. We have a business partner in Japan who can act as your Importer of Record. For more information visit our Importer of Record page.