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Importing to Japan

Japan is a prime market for big tech and cloud firms, with major players already operating data centers in the country. However, if you want to import your tech gear to Japan and ensure smooth entry, you’ll need customs compliance expertise to facilitate fast, hassle-free entry under the country’s strict regulations.

Japan

Trade Landscape in Japan | Tech and Compliance at the Border

Trading technology with Japan involves navigating a landscape of highly specific regulatory hurdles and national standards. Japan has intricate import and export tax structures and customs regulations administered by the Ministry of Economy, Trade, and Industry (METI) and the Organization of Customs and Tariff Bureau (Japan Customs).

Japan follows JIS standards, established by the Japan Industrial Standards Committee (JISC), which are reviewed and revised every five years to keep pace with technological changes, inevitably affecting tech customs procedures. Therefore, HS code categorization, obtaining the correct permits, and filing accurate documentation are extremely important to ensure your shipment is compliant for entry into Japan.

 

Japan also has robust environmental laws that require certain electronic goods to meet energy efficiency and disposal standards, including the Act for the Control of Export and Import of Specified Hazardous and Other Wastes, which implements the Basel Convention. This is central to tech firms managing e-waste disposal or recycling across borders, as these acts apply to electronics that could contribute to e-waste.

Population

122.4 M

Biggest Industry by Export

Cars, Machinery and Electrical Equipment

Capital City

Tokyo

Biggest Industry by Import

Mineral Fuels and Oils

To minimize these bottlenecks, the International Trade Administration (ITA) strongly advises importers to work with an import agent or service, such as an Importer of Record (IOR), to facilitate the process. Not only are Japan Importer of Record services recommended, but the country also requires an IOR to assume legal responsibility for the goods.

Importer and Exporter of Record Services in Japan

Importing into Japan requires careful attention to regulatory, logistical, and market-specific factors to ensure compliance with Japanese customs requirements. Successfully complying with these regulations requires experienced trade compliance experts to ensure a smooth shipment process.

 

As of October 1, 2023, customs regulations have changed the criteria for who can act as an Importer of Record. Under these regulations, companies without a local presence must now appoint an Attorney for Customs Procedures (ACP) for all imports, rather than designating a third-party customs broker. An ACP is a local entity registered with Japanese Customs, but does not act as the Importer of Record. The non-resident entity remains the legal IOR, taking on all import and export risks, whereas the ACP merely acts as an agent for customs procedures.

 

When using TecEx’s IOR Japan solution, you do not need to worry about appointing an ACP. We act as the local Japanese legal entity, assuming full ownership, compliance risks, liability, and importer status.

Did You Know?

Japan also has requirements for prior importing experience, which is a major barrier to new market entrants who cannot demonstrate a track record within the country. This, combined with needing a local entity registered with Japan Customs, can quickly threaten your supply chain. 

 

With TecEx acting as your designated IOR into Japan, you do not need to worry about appointing an ACP, as we take on full liability and responsibility for your import and export processes. TecEx has a long-standing relationship with Japan Customs, and can ensure a smooth import process for your tech gear.

How do IOR and EOR Services in Japan Work?

In Japan, the entity responsible for the entry of goods, the IOR or ACP, is central to the customs process, which formally begins with the declaration of goods to the Director General of Customs and concludes with the issuance of an import permit.

 

To obtain an import permit, a process that can sometimes take months depending on the type of goods being imported, importers must submit documentation required by Japan’s Customs Law. This is the primary point where the importer pays customs duty, excise tax, and submits the Import Declaration Form (C-5020) along with supporting documents such as:

 

  • Accurate Commercial Invoice (CI),
  • The Bill of Lading (or Air Waybill),
  • The Certificate of Origin (COO),
  • Packing lists,
  • Freight accounts,
  • Insurance certificates,
  • Permit licenses, and
  • Any other product-specific documentation required by customs.

Once all documentation is verified and approved by Customs officials and duties are paid, an import permit is issued. Additionally, Japan maintains a relatively low tariff regime on high-tech goods, particularly those from countries with which it has Free Trade Agreements. However, duties may still apply depending on the type of product.

Japan applies a 10% consumption tax instead of a VAT/GST tax on imported products. This must be paid at the time of import, and the importer is responsible for both the collection and remittance to Japanese authorities. The above processes may seem straightforward on the surface; however, in recent months, Japan has implemented export restrictions on 23 types of equipment, including high-tech devices and dual-use chips.

Specialized Solutions for Japan Trade

When partnering with TecEx, a trusted IOR and EOR in Japan, we handle legal documentation, product classification, compliance with JCT regulations, license/permit requirements, and complete a 360° pre-compliance sweep for both imports and exports. As import compliance specialists, we will ensure the required compliance documentation is obtained and check whether your goods require a PSE inspection (more on this later).

 

TecEx offers a Delivered Duty Paid (DDP) service, which goes beyond acting as your IOR. We offer white-glove services & handle everything from pick up until final-mile delivery. We navigate the complexities of Japanese regulations and help you overcome regulatory and shipping challenges, giving you confidence with tech shipments.

Unique Pain Points for Importing to Japan

Importing enterprise IT infrastructure into Japan involves far more than basic customs declarations. Japan’s customs authorities, the Ministry of Finance, and regulatory bodies enforce strict technical compliance laws at the border. Failing to prepare documentation prior to departure results in costly customs holds.

 

Tax-wise, Japan has strict enforcement measures for violations of the Japanese Consumption Tax (JCT). Any non-compliance can result in significant penalties, including fines and potential criminal charges. Many tech goods must also comply with complex domestic laws, such as the Electrical Appliances and Material Safety Act (PSE). PSE involves third-party conformity assessments specifically for electrical products to ensure they meet Japanese safety requirements. PSE regulations apply to over 450 product categories.

 

Product labels must be in Japanese and must include essential information such as the product name, manufacturer, usage instructions, and safety warnings. Electronic products must often include safety certifications, such as PSE marks, before reaching customs. Standard EMC and EMI compliance marks for commercial/industrial enterprise IT equipment are also needed in Japan. An IOR can assist with navigating these permits and approvals.

 

When it comes to advanced tech: enterprise servers, switches, IoT gateways, and advanced GPUs with wireless modules such as Wi-Fi or Bluetooth, must have a GITEKI certification from Japan’s Ministry of Internal Affairs and Communications (MIC) in order to operate legally. This certification requires these goods to bear the GITEKI Technical Conformity Mark. Without it, equipment cannot legally be sold or used in Japan, creating a significant bottleneck for data center rollouts.

 

Lastly, IT equipment that connects directly to public telecommunications networks (such as gateways or edge routers) requires JATE approval and compliance. Japan Customs also require several high-tech gear products to have a Technical Regulations Conformity Certification or Construction Design Certification. TecEx can conduct pre-shipment sweeps for you to verify module certification, preventing immediate customs seizure.

Japan Pain points

Exporting from Japan

Japan imposes restrictions on certain types of technology, particularly items that could threaten national security or violate international sanctions. When exporting dual-use goods, such as GPUs, special export licenses are required to prevent potential misuse of the technology.

 

Additionally, Japan’s adherence to international agreements, such as the Wassenaar Arrangement, introduces further layers of scrutiny, particularly for advanced GPUs. These regulations, combined with logistical challenges, make exporting dual-use tech gear a highly regulated and intricate process.

 

For instance, the exporter must obtain all necessary permits or approvals from authorities such as METI before making an export declaration. Japan Exporter of Record services streamline your tech exports. Our EOR Solution covers export declarations, licenses, permits, accurate documentation, and customs valuations.

 

Japan and AI

As AI integration across sectors fuels GPU demand, chipmakers must navigate complex import and export regulations, straining an already fragile supply chain.

 

Navigating the challenges of advanced GPU shipping requires industry know-how and compliance expertise. Within the AI space, we have a dedicated team that handles the heavy compliance and logistics requirements for AI gear and data center build-outs across borders.

 

Is your AI shipment covered for any damage, loss, or theft? While measures and standard conventions are in place to ensure the safety of consignments, mistakes and unforeseen events do occur. Utilize our global Liability Cover to manage the risk in your supply chain.

Smart Solutions To Get Your Goods Into Japan Efficiently

Japan’s other major imports include fashion, consumer goods, and swag, which require extra compliance due to the country’s strict customs regulations. TecEx can step in as the Importer of Record, taking on the compliance requirements and legal import responsibilities in a market known for its detailed procedures.

Countries That Trade with Japan

Asia

China

North America

United States of America (USA)

Asia

South Korea

Looking for a Japan Importer of Record?

Don’t let compliance hurdles slow you down. Partner with experts who can help you export and import tech and electronics to Japan quickly and confidently.


Further Reading on Imports to Japan