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Tariffs and Regs for Japanese Web customers

Do your Japanese buyers have to pay duties?

         

wattsnew

4:50 pm on Aug 12, 2003 (gmt 0)

10+ Year Member



I'm adding a Japanese language section to our website. Our skin care/cosmetic invention has sold a little there, but with few English searchers we can do better. Native speakers are partners for this venture.

So far, purchasers have received their (English) orders by parcel post to Japan without interference, but I've been told of two issues:

Tariffs: all direct consumer imports are charged duty of 35% or more, distributors 7%. True?

Packaging: all consumer packaging requires approval which is difficult to get. True?

I think the above may apply only to distributors buying caseloads for distribution in Japan (as in some other countries) but that's a guess. Our product ships from Canada or the US and meets US FDA label requirements (there are few for cosmetics).

What's everyone's experience in East Asia; Japan, Korea, China...selling a North American product?

Thanks.

a2ztranslate

2:55 am on Aug 21, 2003 (gmt 0)

10+ Year Member



not from north america, but new zealand. as far as i know, as long as it is marked personal use there are no tariffs. up to 3 months supply of pharmaceuticals can be ordered for personal without tariff.

i think you should be fine unless you are sending bulk lots.

wattsnew

3:46 am on Aug 21, 2003 (gmt 0)

10+ Year Member



Thank you a2z. Appreciate your experience on this.

Cheers.

globalseo

3:41 am on Aug 22, 2003 (gmt 0)

10+ Year Member



Hi Wattsnew,

The best recommendation I have is to talk to FedEx or DHL and they can offer suggestions to you as far as documentation and duties. Additionally, I would pay a visit to the guys over at Jetro. Jetro is a Japanese government agency that assists companies sell to Japan. Search for Jetro Vancouver and you should find the site.

Japan has a program called Kojinyunu "Personal Import" In this situation a special rate applies to "Personal Import" packages valued under JPY100,000 (about $750) are uniformly taxed at 5% on their CIF value (i.e. entire invoice amount, including shipping and handling), even in cases where the standard rate is much higher. This program was implemented about 15 years ago to increase the amount of catalog mail order business in Japan. However, in many cases the duty is never charged when it is clear it is for personal use.

There are other issues you have to deal with like making sure there is a copy of the invoice in the box as well as extra copies with the shipping docs. Customs will take a copy to file with the duty paperwork.

There are many unhappy Japanese who have been hit with excessive tariffs and shipping charges due to overseas vendors not taking the time to understand the basic regulations. The worst is when they start rejecting the packages and you have to pay for the return shipping or have it stuck in customs.

In general Japan is a great market to sell direct to. That is what got me into the online marketing business in the first place. The only thing to remember is that they are the customer and want things done on their terms. You will do much better with a Japanese page that includes detailed terms and conditions.

Good luck.

Bill

wattsnew

5:40 am on Aug 22, 2003 (gmt 0)

10+ Year Member



Hello Bill,

Many, many thanks for the insights...from just the right place!

I'll check with the shippers, however I was going to encourage parcel post shipping (although I use iFulfill who offer UPS as well). To ship to myself (Canada) from iFulfill in Ohio by UPS involves a customs brokerage fee of around $15 on my $19 (personal care) product - and it's duty free! Parcel post to here involves no brokerage. I was hoping Japan would be similar...

I've had only a couple of orders from Japan on my English site...and no comments back after receipt. No forms. Seem to have gone through.

I use approved outside parcel customs stickers to send individual parcel posts to the US from here, (no enclosed forms) but it sounds like you see full documentation in a parcel you receive in Japan. Small personal purchases as well? Copies for customs? Sounds formidable for small packets.

The Japan Customs site is a Customs Broker's dream ...nothing there!

Jetro Vancouver... I've just taken another look and with some digging I could perhaps get good information. Not too accessible ("appointment mandatory"...) and little online now. But Jetro Japan (Eng) seems to have plenty online concerning all phases of importing!

Good resources and reminders Bill. I'll get to work on them.

Thanks again.

Tom