Although not meant to be all-inclusive, this can give you an introduction to some of the details you need to be aware of for specific markets.

More country-specific information is available from the Trade Information Center's Regional Databases here!

Customs Duties and Temporary Entry

Customs Duties in Japan

Japan assesses tariff duties on the Cost, Insurance and Freight (CIF) value of the product being exported to Japan. The "C" in CIF represents the price/cost of the goods charged the buyer (importer) by the seller (exporter) for the product. The "I" represents any insurance fees paid to cover the shipment (over and above those insurance fees already included in the freight charges). The "F" represents the Freight charges to get the product from the exporter to the importer. By adding up each of these values you will have the CIF value of the product.

Customs Valuation: All goods sent to Japan must have a value and description provided, even samples and gifts. When a sale has occurred, in addition to the price paid or payable, associated charges such as transportation, sales commissions, discounts, etc. must be declared. For non-revenue shipments such as gifts, samples, and interoffice transfers, a fair market value must be declared, with one Japan Yen being the minimum possible value.

Import Duties: All goods entering Japan must clear Japanese Customs and are subject to Duty and Consumption Tax assessment, unless the goods are exempt by law. Duties are usually an "ad valorem" rate (a percentage) that is applied to the customs value (in Japanese Yen) of the imported goods – as discussed above. However, in rare instances, some goods are dutiable at a specific rate of duty, such as, based on the value per piece, kilo, or liter, while others are dutiable at a compound rate of duty (a combination of both ad valorem and specific rates). Rates of duty vary based on commodity type and country of origin and are available in the Harmonized Tariff Schedule of Japan. Although the maximum rate is 60% of CIF value, duties are usually between 3% and 15%. The Consumption Tax is always 5%.

Temporary Entry of Products

There are many instances when companies will send an item to another country for a temporary stay. These include commercial samples and advertising materials for trade shows as well as products being returned for repair, testing, or instrumentation, to name a few.

In general, there are two ways to reduce or eliminate incurring duties (and in some cases taxes) when shipping goods for temporary entry to Japan: 1) purchase an ATA Carnet or 2) apply for a refund upon re-exportation of the goods. The following is an overview of both options.

• To reduce or eliminate import duties when shipping a product for temporary entry into Japan, companies may purchase an ATA Carnet. An ATA Carnet is an international customs document that allows temporary duty free admission of goods into Japan (and other countries). To avoid paying duties (and a penalty fee) products imported into Japan under an ATA Carnet must be re-exported within one year (or within the terms of the Carnet). Companies are required to purchase an ATA Carnet prior to exporting the product from the United States.
• The Japanese also will refund import duties paid at the time of entry if the goods are re-exported and meet the requirements promulgated in the "Systems for Reduction, Exemption, Refund, and Repayment of Customs Duty." For example, under Article 19-3, when goods that have been imported with payment of customs duty are re-exported from Japan without any change in nature and form from at the time of importation, the customs duty previously paid may be refunded within one year from the date of their import permit.

* Additionally, if an ATA Carnet is not used, it is important to register with U.S. Customs and Border Protection (CBP) any products temporarily leaving the United States. This must be done at the time of export from the United States. The required document is the Certificate of Registration (CBP Form 4455). Include this document with all other export documentation and keep a copy for your records. Make sure the entity in the foreign country includes this certificate with the shipping documentation when the item is re-exported to the United States. By registering goods with CBP, companies establish a means to demonstrate that the same product that exited is being returned and import duties and fees will not be charged (if all laws and regulations are followed).