Category Archives: ACP

Import Valuation for Japan Amazon FBA: Deductive Method

Import Declaration Value Assessment for Amazon FBA Shipments to Japan

Fundamentals of Calculating Import Declaration Values Based on Japan’s Customs Tariff Law

Overview of customs valuation methodology:

Typically, for importations that involve a purchasing agreement between an overseas seller and a Japanese buyer who also acts as the importer, the declaration value can be based on the CIF sales transaction price. This method is recognized as the primary determination method under Customs Tariff Law Article 4, Paragraph 1.

In instances involving Amazon FBA, where Amazon International Sellers send their products to an Amazon FC warehouse in Japan without transferring ownership, the primary method is not applicable. Consequently, a special determination method must be applied as outlined in Customs Tariff Law Article 4-2 and subsequent sections.

For Amazon FBA shipments, the import declaration value is usually set by a special method detailed in Customs Tariff Law Article 4-4, which calculates the taxable value for special import goods using the domestic sales price determination method of Article 4-3. This process includes subtracting specific local expenses (such as import duties, consumption tax, Amazon Referral Fee, Amazon FBA Fee, and domestic transportation costs) from the domestic sales price, a technique referred to as the Deductive Method.

 

Deductive Valuation Technique

The deductive valuation process, based on the domestic sales price, is outlined as follows:

Step 1) Subtract Amazon Fees, Fulfillment Costs, and Other Domestic Fees (e.g., Domestic Transport, Clearance charge) from the Domestic Sales Price.

Example: Sales Price 74,500 JPY – Total Fees 13,930 JPY = 60,570 JPY

 

Step 2) Adjust the result from step 1 for the 10% Japan Consumption Tax and any applicable customs duty rate.

Example: 60,570 JPY ÷ 110% = 55,063 JPY

 

This results in 55,063 JPY being the per product import declaration value.

 

Required Screenshots for Validation of Sales Price and Fees

Japan Customs mandates the provision of screenshots as proof of the Sales Price and deducted fees.

Evidence of Sales Price: Obtain this from the Amazon Sales Page at [www.amazon.co.jp/dp/ASIN NUMBER]

Amazon Seller Central Simulator: Capture a screenshot from the provided simulator in Amazon Seller Central.

Cost Documentation: Occasionally, you might need to submit the “Fulfillment by Amazon Cost Report”.

As your trusted Customs Procedures Attorneys (ACP) in Japan, ACP JAPAN is committed to meticulously preparing all requisite documentation and screenshots for the import declaration process. Depend on our skilled guidance to meet all your customs requirements.

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

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.

 

 

Japan Security Export Control – Compliance Establishment

Exporters shipping goods from Japan are required to verify whether the exported goods or transactions are subject to security export control regulations. Exporters must prepare the necessary classification documents (Certificates of Non-Applicability/Applicability) for export customs clearance and, where necessary, obtain permission from the Ministry of Economy, Trade and Industry.

Compliance with list control and catch-all control regulations, as defined in the Foreign Exchange and Foreign Trade Act, Export Order, Foreign Exchange Order, and the Order Concerning Export, etc., is mandatory. There are also penalties for non-compliance.

Our company supports many foreign corporations (exporters and importers) based outside Japan as an Attorney for Custms Procedures (ACP). Acting as an ACP for the foreign corporations, we handle customs procedures as well as tasks required under security export control, including determination of list control compliance, transaction reviews under catch-all regulations, and applications for permits from the Ministry of Economy, Trade and Industry.

With the increase in export cases, we have established a business process for security export control that meets the “Compliance Standards for Exporters, etc.: I Standards of Compliance for Exporters, II Standards of Compliance for Export of Controlled Items,” as stipulated by law.

As a professional Attorney for Customs Procedures, we are committed to properly adhering to various compliance requirements.

 

Reference: Ministry of Economy, Trade and Industry, Security Trade Control Guidance (Link)

 

 

 

 

 

Various Laws to Consider When Exporting

Customs Law Related:
  – Customs Law: Prohibited items (narcotics, child pornography, items infringing intellectual property rights, copies, imitations, etc.).

Security Trade Control (Export Control) Related:
  – Export Trade Control Order: Goods
  – Foreign Exchange Order: Services (technology)

Other Laws Related:
  – Cultural Property Protection Law
  – Wildlife Protection and Hunting Law
  – Livestock Infectious Disease Prevention Law
  – Rabies Prevention Law
  – Plant Quarantine Law
  – Road Transport Vehicle Law
  – Narcotics and Psychotropic Drugs Control Law, Cannabis Control Law, Opium Law, Stimulants Control Law

 

Framework of Security Trade Control Regulations

1) List Control:

Prohibited goods and technologies that should not be exported (advanced technology, dual-use risks):
  – Goods: Items 1 to 15 in Schedule 1 of the Export Trade Control Order.
  – Services: Items 1 to 15 in Schedule of the Foreign Exchange Order.

2) Catch-All Controls:

Prohibited export recipients (UN arms embargo countries or concerning individuals/organizations):
  – Goods: Item 16 in Schedule 1 of the Export Trade Control Order “All except food and wood.”
  – Services: Item 16 in Schedule of the Foreign Exchange Order “Technologies related to all except food and wood.”

 

Penalties Related to Export Control

Criminal Penalties (Maximum):

  – Up to 10 years imprisonment
  – Fine up to 1 billion yen (for corporations)
  – Fine up to 30 million yen (for individuals)

Administrative Penalties:

  – Prohibition on exporting goods or providing technology for up to 3 years
  – Prohibition from taking executive positions in other companies

 

Export Control Procedures

Step-1: Yes-No Determination
Determine whether the goods or technology to be exported falls under the “List Control” goods etc.

  – Specific items are listed in “Schedule 1 of the Export Order” or “Schedule of the Foreign Exchange Order”, and their specific specifications are confirmed in “Goods etc. Ministerial Ordinance”.

  – Item verification: Match export items against the contents of Schedule 1 of the Export Order or the Foreign Exchange Order. 

  – Specification verification: Match against the Goods etc. Ministerial Ordinance. The “Goods & Technology Matrix Table” on the Ministry of Economy, Trade and Industry website is helpful for matching export item specifications.

  – Using the “Item-by-Item Comparison Table” or “Parameter Sheet” can be more efficient. Available for purchase from the CISTEC website.

  – If not applicable, a non-applicable certificate is created.

 

Step-2: Transaction Examination
Check who the counterpart is (inquirer, end-user), and what the uses are to decide whether to proceed with the transaction.

(1) “End-Use & End-User” verification and decision.
(2) Decision on the applicability of “Exception Provisions” (such as gratuitous exception, small amount exception).
(3) Decision on the applicability of “General Permit”.
(4) Check concerning Catch-All Controls.
  → If necessary, apply for individual permission from the Ministry of Economy, Trade and Industry.

 

Step-3: Shipping Management, Export

  – Ensure that the Yes-No Determination and Transaction Examination are properly completed.
  – Verify that the goods or technology to be exported is the same as what was determined and examined.
  – If a permit is required for export, ensure it is obtained.

 

Export Permit Application

When exporting goods or providing technology that falls under regulation, it is necessary to obtain prior permission from the Ministry of Economy, Trade and Industry (normally, electronic application through NACCS).

 

Compliance with Export Control Standards (enacted April 2010)

  – Those engaged in exporting or providing technology as a business (exporters etc.) must comply with the Exporter Compliance Standards according to Article 55-10, Paragraph 4 of the Foreign Exchange Law.

  – Exporters etc. dealing with security-sensitive specified important goods (List Control items) must comply with Standards I and II. Those not dealing with such items must comply with Standard I only.

 

Tips for Export Management (Utilization of Forms)

By establishing and utilizing company-specific forms (formats), export management tasks can be securely implemented, and illegal exports can be prevented.

Form Examples:

  – Yes-No Determination: Yes-No Determination Form
  – Transaction Examination: Use Checklist, End-User Checklist, Clear Guideline Sheet, Transaction Examination Form
  – Shipping Management: Shipping Checklist

  Reference: Ministry of Economy, Trade and Industry Security Trade Control Guidance Materials

 

Gratuitous Exception (exemptions where permit application is waived)

Gratuitous Notice: Goods imported gratuitously as specified by the Minister of Economy, Trade, and Industry under Article 4, Paragraph 1, Item Ho and He of the Export Trade Control Order.

Goods imported gratuitously and returned gratuitously (9 cases extracted):
 – Goods exported from Japan that are repaired in Japan and re-exported.
 – Goods exhibited at exhibitions held in Japan from abroad.
 – Goods imported through an ATA Carnet for temporary import.
 – Items carried by persons temporarily entering and leaving the country for personal use.
 – Goods imported for the purpose of transporting other goods.

Goods to be exported gratuitously as specified (7 cases extracted):
 – Goods exported by the International Emergency Assistance Team for use in international emergency assistance activities.
 – Goods exported by experts dispatched by the Japan International Cooperation Agency for their use.
 – Items carried by persons temporarily leaving the country for personal use.
 – Goods exported for the purpose of transporting other goods.

 

Small Amount Exception (exemptions where permit application is waived)

 (1) Items under Items 1-4 of Schedule 1 of the Export Order: No application of small amount exception.
 (2) Goods under Items 5-13 of Schedule 1 of the Export Order, except below (3): Below 1 million yen.
 (3) Goods specified by the Minister of Economy, Trade, and Industry under the provisions of Schedule 3, Item 3 of the Export Order (Schedule 3, Item 3 Notice): Below 50,000 yen.
 (4) Goods under Item 14 of Schedule 1 of the Export Order: No application of small amount exception.
 (5) Goods under Item 15 of Schedule 1 of the Export Order: Below 50,000 yen.
 (6) Goods under Item 16 of Schedule 1 of the Export Order: No application of small amount exception.

  Note: If the destination is a concern country (North Korea, Iran, Iraq, etc.), the small amount exception does not apply.

 

U.S. Export Control Regulations – EAR (Export Administration Regulations)

A feature of the U.S. EAR is its “extraterritorial application”. When U.S.-origin goods or technology exported from the U.S. are re-exported from the importing country, in addition to review under the domestic laws of that country, an export review based on U.S. law is also required. If applicable, permission must be obtained from the U.S. government.

 Step-1: Check if the item is subject to EAR regulations (CCL – Commerce Control List). 
 Step-2: Check if an ECCN (Export Control Classification Number) exists.
 Step-3: Check if re-export permission is required.
 Step-4: Check if a license exception is applicable.
   → If necessary, apply for permission from the U.S. government.

 

 

 

 

Our Service – Attorney for Customs Procedures (ACP) for Exporter of Record (EOR)

 

What is an Exporter of Record (EOR) in Japan?

For exporting goods from Japan, it is required to designate a Japan Exporter of Record (EOR).

The EOR must typically be a Japanese resident person or entity, bearing responsibility for compliance with export-related regulations.

Japan Customs mandates that the EOR be based in Japan, disallowing foreign entities from fulfilling this role directly.

What is Japan ACP – Attorney for Customs Procedures

Nevertheless, foreign entities can engage in exporting from Japan by appointing an Attorney for Customs Procedure (ACP). This appointment allows the foreign enties to operate as a Non-Resident Exporter (EOR), enabling them to manage exports independently.

The concept is similar for imports. While a non-resident cannot directly become a Japan Importer of Record (IOR), utilizing an ACP enables a foreign entity to assume the role of an IOR equivalently.

 

Our ACP Service: The Best Solution for the Japan Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan EOR – Exporter of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan EOR – Exporter of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

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.

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

 

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[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

 

 

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

As previously mentioned in another article (“Announcement from Japan Customs | Mandatory to use ACP in Many Cases – Attorney for Customs Procedure”),

from October 2023, overseas sellers, especially those on e-commerce platforms like Amazon, Rakuten, and Shopify, are now necessary to utilize ACP and become the Importer of Record (IOR) themselves. Therefore, schemes involving designating other Japanese corporations as the IOR are no longer feasible. Despite clear directives to this effect, we observe certain IOR businesses providing unauthorized IOR services.

The prevalence of such questionable practices necessitates this article as a cautionary note. Sellers operating in Japan must strive to understand and comply with the correct legal framework and avoid unnecessary penalty.

 

 

Problematic Practices – Violation of Customs Laws

There are instances where transactions seem to exist between overseas businesses and Japanese IORs (who are merely importers in name), with manipulated documents like invoices reflecting undervalued declared prices for customs clearance. In reality, these goods are not directly shipped to fulfillment centers like Amazon but temporarily stored in domestic warehouses. Here, they are labeled before being sent to the final fulfillment destination. This scheme aims to avoid detection by customs as e-commerce products. Such actions are illegal and not in compliance with the law, and I strongly urge an immediate cessation of these practices.

Importing through illegal schemes often leads to undervalued import declarations. Even if customs clearance is initially granted, subsequent Post Clearance Audit by customs can lead to substantial penalties. Legally, the IOR is liable for these payments, which can lead to disputes between overseas sellers and IOR businesses. Typically, the financial burden of import duties and taxes falls on the overseas sellers, making conflicts predictable.

Both the uninformed overseas businesses using these illegal schemes and the IOR operators bear responsibility.

Observing extremely low prices for products by overseas sellers on e-commerce platforms like Amazon often gives an impression of an unfair competitive environment. Legitimate overseas businesses pay appropriate taxes and add these costs to their selling prices, putting them at a disadvantage against sellers who avoid proper tax payments. This unfairness is precisely why the customs system was revised in October 2023.

For businesses with low compliance awareness, the issues likely extend beyond just declared values. Often, they might also be non-compliant with intellectual property laws and other regulations.

 

 

 

Concerns Over Cost Impact of Customs Valuation/Import Declarations

When overseas sellers import goods for e-commerce into Japan, whether through ACP or as the another IOR company, there is no “import transaction” with a Japanese buyer, leading to the exceptional determination method for declared import values, typically based on the domestic selling price.

There are concerns about high valuation leading to excessive duties and taxes. However, this is a determination method based on the Customs Tariff Law, which must be adhered to. The cost impact of the valuation is not as significant as often feared.

The taxes on import are mainly customs duties and consumption tax. Japan’s import tariffs are relatively low on a global scale, and many industrial products are duty-free. As for consumption tax, which is a uniform 10%, it is an indirect tax borne by the final consumer, not a cost for the overseas seller. Taxable businesses regularly file consumption tax returns to the tax office, adjusting the tax paid on imports against the tax collected from sales, neutralizing the cost impact. However, this necessitates that the overseas business itself becomes the importer, achievable only through using ACP.

With the start of the consumption tax invoice system in October 2023, many overseas businesses might have registered as qualified invoice-issuing entity. For B2C businesses, registration as a qualified invoice-issuing entity is not always necessary, but many companies seem to register without fully understanding the system. I recommend that overseas businesses seek advice from qualified professionals to navigate these changes correctly.

 

As seasoned experts in customs and trade facilitation, we at ACP JAPAN are here to navigate these complexities on your behalf. Our approach, grounded in professionalism and profound regulatory knowledge, ensures a seamless, compliant, and strategic entry into Japan’s vibrant market.

We invite you to reach out to us — let’s discuss how we can support your business’s successful and compliant expansion into Japan. Your peace of mind is our top priority.

We look forward to your inquiry!

 

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

For Foreign Corporations Without a Base in Japan:

We are informing you about the two new systems that commences in October 2023. These systems are distinct and must be approached separately. However, there are aspects where they intersect and must be understood collectively. Here’s a detailed breakdown:

 

Japan Customs has clarified the definitions of Importers, necessitating the shift from using IOR Providers to ACP (Attorney for Customs Procedures) in numerous instances

Since October 2023, Japan Customs mandated that foreign corporations (non-residents) without a presence in Japan must act as importers themselves in many situations. Utilizing another company to serve nominally as the importer, such as an IOR service provider, will no longer be an option.

To comply with these regulations, foreign corporations lacking a Japanese base need to appoint an ACP (Attorney for Customs Procedures), making the ACP system essential for their operations.

 

 

Why this System Change?

There have been instances where foreign corporations, along with importing agents unfamiliar with customs laws or lacking proper compliance awareness, have collaborated. Such collaborations often result in the failure to accurately pay the necessary duties and consumption taxes upon importation by utilizing undervalued invoices, almost simulating a sales transaction. To address this issue, Japan Customs now instructs foreign corporations to engage with ACP. Using ACP mandates that commercial distribution transaction details be presented to the customs office, ensuring the declaration of an appropriate import value.

Typically, the import declaration value is derived by subtracting certain domestic costs from the projected domestic sales price, in line with the Japanese Customs Tariff Law. However, we believe there’s no significant cause for concern regarding this value. Japan’s tariff rate is relatively low on an international scale, and the import consumption tax is primarily a “tax borne by the end consumer”. Though a 10% consumption tax is required at the point of import, it can be recouped from customers during sales. If a tax return is accurately filed, any overpayments will be refunded.

Moreover, to claim credits for the consumption tax on purchases (paid upon importation), the seller—a foreign corporation—must assume the role of an importer. Alongside appointing an ACP, foreign entities should also designate a tax accountant to act as a tax agent. This ensures the accurate filing of consumption tax returns with the tax office.

As seasoned ACP professionals, we lead consultations with Japan Customs proactively to guarantee seamless import customs clearance and oversee the determination of import declaration values, among other critical aspects. Our expertise extends to countless import/export projects, and we pride ourselves on a flawless record of customs clearance.

 

 

Related Readings:

 

 

 

Qualified Invoice System (QIS) for Japan Consumption Tax (JCT)

The forthcoming alteration pertains to the national tax system.

The advent of the consumption tax invoice system means a surge in overseas companies becoming consumption tax invoice issuers. For Japanese customer (buyer) during a consumption tax return filing must emanate from a registered invoice issuing entity, otherwise the Japanese customer can not claim the purchase tax credit on the consumption tax paid to a seller. 

Should an overseas company opt to become an invoice issuing entity, it is automatically becoming as a taxable entity for consumption tax. This necessitates the submission of a periodical consumption tax return with the tax authorities. Therefore, companies are urged to carefully consider whether they cater to B2C consumers (typically not filing consumption tax returns) or B2B entities (usually filing such returns), before deciding on registration.

 

 

For the case of a non-resident entity (Company-A), when Company-A imports and sells to customers in Japan, following 3 steps are the standard procedure.

(1) Pay import JCT to a customs office, 10% of the import customs value when Company-A imports.
<PAY TO CUSTOMS OFFICE>
(2) Obtain JCT from a customer in Japan, 10% of the sales price when Company-A sells
(3) Submit JCT tax return
   (3-1) If you paid (1) as IOR = Importer, which means you appoint ACP, then you’re required to pay only the difference amount (2) – (1)
   (3-2) If you paid (1) but you were not IOR = Importer, then you’re required to pay all the amount of (2). You can’t deduct (1).

 

Please be careful that only the IMPORTER can deduct the input JCT (import consumption tax) at the time of tax filing mentioned above (3). In other words, if another IOR service provider became the IMPORTER when you import, basically it would not be possible for the non-resident entity to deduct the input JCT (import consumption tax). Therefore, you have to pay all the amount of (2) to a tax office (mentioned above (3-2).

On the other hand, by importing with ACP and becoming the IMPORTER, you can deduct the input JCT (import consumption tax) when filing JCT tax returns as mentioned above (3). Therefore, you would only need to pay the difference amount (2) – (1) to a tax office (as mentioned above (3-1).

This is one of the significant advantages of using the ACP service instead of the IOR service.

For this reason, we strongly recommend using ACP so that you can become IOR.

 

Related Readings:

 

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

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.

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

Importing Tech Goods to Japanese Data Centers

The increasing demand for importing and delivering goods to data centers in Japan is largely driven by the tech and AI boom. Often, clients, who are non-resident companies, seek to deliver goods—either their own or their end-clients’—to these data centers without making a sale. To facilitate this, the clients need to handle the import process into Japan on their own.

However, there’s a challenge: Japanese Customs mandates that only resident entities can act as importers. This is where the ACP – Attorney for Customs Procedures comes into play. It allows non-resident entities to act as the Importer of Record (IOR), bridging the gap in this process.

At ACP Japan, we possess a wealth of experience in supporting the import and delivery of goods to data centers. Typically, products shipped to these data centers are non-regulated items like servers, switches, transceivers, cables, and more. We’re here to assist you with your needs. Please don’t hesitate to reach out to us.  

 

 

 

   

Japanese Customs System Reform (Instruction to use ACP)

Due to the increasing occurrence of cases where foreign entities attempt to import goods by falsely designating third parties such as forwarders or customs agents as importers, starting from October 1, 2023, a system reform has been implemented to address this issue. The Japanese Customs authorities request foreign entities to comply with the law and use Attorney for Customs Procedures to act as importers.

Japan Customs: Revision of Import Declaration Items and Attorney for Customs Procedure (ACP) System

English: Announcement from Japan Customs | Directive to use ACP – Attorney for Customs Procedure 

 

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

Japan Qualified Invoice System and Compliance JCT (Japan Consumption Tax)

Recently, many companies have been registering as Qualified Invoice Issuers for Japanese Consumption Tax (JCT) due to the new invoice system introduced in October 2023. This new system is similar to the EU’s VAT invoice system.

After October 2023, your Japanese customer can’t claim input JCT tax credits unless the sellers(suppliers) issue a qualified invoice that is written a JCT number. To issue a qualified invoice, sellers(suppliers) need to be a taxable entity and get a JCT number.

Before October 2023:

Any customer (Company-B) who paid for goods or services could deduct input JCT regardless of whether the seller (Company-A) was registered for JCT. There was no requirement to verify the tax status of the seller.

After October 2023:

Any customer (Company-B) can only deduct input JCT if Company-A, the seller, is registered and can provide a qualified invoice with a JCT registration number. If Company-A cannot issue such an invoice, Company-B may choose not to continue purchases from them.

If Company-A sells only to consumers and not businesses, it may not need to issue qualified invoices since consumers typically do not claim JCT tax returns.

Once Company-A obtains a JCT invoice registration number, it becomes a taxable entity required to file JCT returns regularly.

For non-resident entities (Company-A) importing and selling in Japan, the standard procedure involves three steps:

  1. Pay import JCT to customs: 10% of the import customs value.
  2. Collect JCT from customers in Japan: 10% of the sales price.
  3. File a JCT tax return and pay the net JCT to the tax office.

If Company-A paid the import JCT as the importer using an Attorney for Customs Procedures (ACP), they need only pay the net amount of sales JCT minus import JCT.

If Company-A paid the import JCT but was not the importer, they must pay all the collected sales JCT without deducting the import JCT.

Therefore, using an ACP to act as the Importer of Record (IOR) is crucial for managing JCT deductions and refunds. If another company acts as the IOR, you cannot deduct the import JCT, resulting in significant costs.

We strongly recommend using our ACP services to ensure you can act as IOR, optimizing your JCT handling. Our team has extensive experience helping clients become importers and successfully manage their JCT responsibilities. You can rely on our expertise to navigate these complexities.

 

 

 

 

Japanese Customs System Reform: Clarification of Importer Definitions

Starting October 1, 2023, Japanese Customs has instituted a pivotal reform aimed at addressing the issue of foreign sellers improperly designating third parties (such as forwarders or customs agents) as importers.

This revision necessitates foreign corporations to utilize an Attorney for Customs Procedures (ACP) to assume the role of Importer of Record (IOR) directly in many cases. The practice of merely nominally appointing another entity as the importer is no longer feasible.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

 

Revisions Effective October 1, 2023:

Definition of the Importer

  • Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act.    ….. This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
  • In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

     In case of a cargo imported:
     – under lease contracts, a person who rents and uses the cargo.
     – for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
     – for processing or repairing, a person who processes or repairs the cargo.
     – for disposal, a person who disposes the cargo.

 

For additional information, please refer to the following resources:

 

Contact us

 

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

 

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

 

Japan Customs Reform | Clarification of Importer Definitions

We would like to inform you about a significant revision by Japan Customs, which clarifies the definition of an Importer. This change took effect on October 1, 2023.

With the revision, there has been an increase in cases where foreign corporations must use an Attorney for Customs Procedures (ACP) to become an Importer of Record (IOR) themselves. It is no longer feasible to nominate another entity merely in name as the importer.

In instances other than normal import transactions between an overseas seller and a Japanese buyer, where the importer does not have the authority to dispose of the goods after importation (for example, when a foreign corporation does not become the IOR themselves and nominates a forwarder, customs broker, or another third party who is not involved in the transaction to be the nominal IOR), there is a high probability that approval will not be granted as such nominations are not recognized as legitimate importers, necessitating caution.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

 

Revisions Effective October 1, 2023:

Definition of the Importer

  • Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act.    ….. This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
  • In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

     In case of a cargo imported:
     – under lease contracts, a person who rents and uses the cargo.
     – for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
     – for processing or repairing, a person who processes or repairs the cargo.
     – for disposal, a person who disposes the cargo.

 

For additional information, please refer to the following resources:

 

 

Case Study: Directives to use ACP

Case 1: Importing Goods Using FS (Fulfillment Services) by Non-resident Sellers

A non-resident seller plans to import goods for sale domestically using FS provided by EC platform operators. At the time of import declaration, there is no sales contract between the seller and the consumer. The seller (non-resident) is the main entity for sales on the EC platform after domestic pickup of the goods. Therefore, the seller, who aims to sell the goods in accordance with the purpose of import, needs to become the import declarant and appoint Attorney for Customs Procedure (ACP) to carry out the import declaration.

 

Case 2: Importing Goods Using FS by Non-resident Sellers

A non-resident seller plans to import goods for sale domestically using FS provided by EC platform operators. At the time of import declaration, there is no sales contract between the seller and the consumer. The seller (non-resident) entrusts domestic customs clearance arrangements to Company-A (located in Japan), but the main entity for selling the goods within the domestic market using FS remains the seller (non-resident). It is planned that the seller (non-resident), who intends to sell the goods on the EC platform after domestic pickup, should become the import declarant and appoints Attorney for Customs Procedure (ACP) in accordance with the purpose of import declaration.

 

 

Case 3: Importing Goods Using FS by Non-resident Sellers

A non-resident seller plans to import goods for sale domestically using FS provided by EC platform operators. At the time of import declaration, there is no sales contract between the seller and the consumer. The seller (non-resident) entrusts the transportation of the goods from overseas sellers to Japan to an overseas forwarder, but the main entity for selling the goods within the domestic market using FS remains the seller (non-resident). It is planned that the seller (non-resident), who intends to sell the goods on the EC platform after domestic pickup, becomes the import declarant and appoints Attorney for Customs Procedure (ACP) in accordance with the purpose of import declaration.

 

Case 4: Importing Goods for Consignment Sales

Goods (consignment sales goods) intended for domestic sale by an assignee who has received consignment sales from a non-resident consignor are imported. The imported goods are stored in an FS warehouse and sold on the EC platform under the name of the assignee. The assignee is the main entity for selling the goods within the domestic market using FS.

Either of the following options is necessary:

The consignor (non-resident) who has the authority to dispose of the consignment sales goods becomes the import declarant, appoints Attorney for Customs Procedure (ACP), and carries out the import declaration.

The assignee (i.e., the seller on the EC platform) who conducts the act of selling on behalf of themselves as the purpose of import becomes the import declarant and carries out the import declaration.

 

 

 

 

For more information regarding the revised regulations by the Japan Customs, please refer to the following:

(Link: Revision of Import Declaration Items and Attorney for Customs Procedure (ACP) System) Ministry of Finance, Japan Customs July 2023 With the expansion of cross-border e-commerce, the importation of goods for online shopping has increased, leading to a significant number of cases involving the smuggling of illegal drugs and counterfeit goods that infringe upon intellectual property rights. Particularly concerning are instances of tax evasion, where goods imported through fulfillment services (FS) are declared at unreasonably low prices to evade customs duties.

In light of these circumstances, we have conducted a review of the existing system to ensure the continued facilitation of smooth imports while effectively combating smuggling activities and ensuring proper taxation. Effective from October 1, (2023), there will be an addition to the import declaration items under the Customs Law Enforcement Order, requiring the inclusion of the “address and name of the person intending to import the goods” at the time of import declaration.

Furthermore, there will be additions to the declaration items for Attorney for Customs Procedure (ACP), including information regarding the relationship between the declarant and the Attorney for Customs Procedure (ACP). Additionally, it will be mandatory to submit the contractual documents between the declarant and the ACP. For specific details regarding the revisions to the system, please refer to the following reference materials.

 

Reference (Japan Customs)

Leaflet: “Review of Import Declaration Items and ACP system

Case Study: “Clarification of the Significance of Import Declarants”

Revision of the ACP Application Form

 

 

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

Limitations of Using ACP for Specific Goods by Foreign Japan IOR – Our System Enables Us to Handle Regulated Items

Japanese Certain laws, such as the Pharmaceutical and Medical Products Act, the Electrical Appliance and Material Safety Act (PSE), the Consumer Product Safety Law (PSC), and the Food Sanitation Act, stipulate that importers must be corporations with a registered address in Japan, and thus restrict handling.

However, we have established a partnership system that enables us to arrange the Importer of Record (IOR) and Attorney for Customs Procedures (ACP) for regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

While many ACP service providers do not handle such regulated items, our ability to handle those regulated items has become a competitive advantage of our company. Please consult with us for handling these regulated items.

 

 

 

Japan Consumption Tax (JCT) Compliance

Understanding the handling of JCT (such as payment of import JCT, collection of sales JCT from customers, and JCT returns) is crucial to avoid significant cost burdens. This is a vital aspect, so please ensure a thorough understanding to determine the most optimal business model.

Basic Process of JCT Handling

The JCT treatment for foreign corporations without a base in Japan, importing and then selling in Japan, can be broadly outlined in the following three steps:

  1. At Import: Pay import VAT (10% of the declared value) to customs – Supported by ACP (Attorney for Customs Procedures)
  2. At Sale: Collect VAT (10% of sales) from customers
  3. Final Tax Return (usually annually): Deduct the import VAT paid (step 1) from the JCT collected from customers (step 2), and pay or receive the difference to/from the tax office – Supported by a Tax Representative (Certified Tax Accountant)

Note: Using ACP to become the importer (IOR) is essential for JCT deductions and refunds. If another company acts as the IOR, you cannot deduct the input tax (step 1), and must pay the entire VAT collected (step 2) to the national tax authorities, leading to significant costs.

If you are a JCT-exempt business, the process ends at steps 1 and 2. For taxable businesses or invoice-registered businesses, step 3 (Final Tax Return) is obligatory.

In the Final Tax Return (step 3), if the JCT paid (step 1) exceeds the provisional JCT received (step 2), the difference is refunded. Conversely, if the provisional JCT received (step 2) exceeds the JCT paid (step 1), the difference must be paid to the tax office.

Is Being the Importer Important?

It is very important. Without acting as the importer (IOR) through ACP (Attorney for Customs Procedures), you cannot deduct input tax in step 3. You must pay the full amount of JCT collected in step 2 to the tax office, with no possibility of a refund, resulting in substantial costs. Be careful not to let another company act as the importer.

 

Are we a Tax-Exempt Business?

Tax Payment Obligations of Nonresidents and Foreign Corporations

First, the consumption tax received from customers in Step 2 above should basically be paid to the national tax office. Consumption tax is imposed on transfers, etc. of assets made in Japan. Therefore, even if a nonresident or foreign corporation transfers assets in Japan, it is subject to consumption tax and is obligated to pay the tax.

In some cases, such as exempt businesses, it may not be necessary to pay the tax to the national tax office.

However, the following are examples where one cannot qualify as an exempt business and must file for consumption tax:

<Typical examples of businesses that are not tax-exempt and are required to file a consumption tax return

  1. Qualified JCT Invoice Issuer
  2. Businesses with taxable sales exceeding 10 million yen in the base period (roughly speaking, the fiscal year two years prior) for the taxable period
  3. Businesses with taxable sales exceeding 10 million yen for the specified period (roughly speaking, the first six months of the previous fiscal year, etc.)
  4. Newly established corporations (including specified newly established corporations) with capital or investments of 10 million yen or more for taxable periods without a base period
  5. Businesses that have made the election to become a taxable enterprise

 

※ With the amendments to the Consumption Tax Law in April 2024, regarding point 4, if a foreign corporation has capital or contributions exceeding 10 million yen when they start business operations in Japan (including specifically newly established corporations), regardless of when the corporation was established abroad, they are obliged to pay taxes and declare from the fiscal year they start operations in Japan (applicable for taxable periods starting after October 1, 2024).

 

 

 

Can Tax-Exempt Businesses Receive Refunds?

Yes, it’s possible, but a final tax return (step 3) is necessary. Even if you’re an exempt business, you are still able to opt to submit a “Taxable Business Selection Notification” to the tax office, intentionally becoming a taxable business to file a final tax return and receive a refund for the paid import JCT. This is applicable only if the JCT paid at import (step 1) exceeds the provisional JCT collected (step 2). Note that using an ACP (Attorney for Customs Procedures) to act as the importer is essential for input tax deduction and refunds.

 

Is It Better to Become a Registered Invoice Issuer?

This depends on individual circumstances, but generally speaking, for B2B where customers are corporations, it’s better to be a Registered Invoice Issuer (as corporations file JCT returns and need qualified invoices for input tax deductions). For B2C where customers are primarily consumers, the necessity is somewhat reduced (as most consumers do not file JCT returns).

Many companies seem to become Registered Invoice Issuer without fully understanding the system. Being a registered business mandates the filing of a final tax return (step 3). Please seek advice from appropriate experts.

 

Is Support from a Certified Tax Accountant Necessary?

For non-residents conducting tax office procedures (step 3) in Japan, appointing a Tax Representative is required. The ACP handles customs procedures, while the Tax Representative deals with national tax (tax office) matters. Under the Certified Tax Accountant Act, the following tasks are exclusively performed by the Certified Tax Accountants, making their support essential:

  • Preparation of tax documents
  • Tax representation
  • Tax consultation

Our company, in partnership with Certified Tax Accountants skilled in international taxation, will provide support in these areas.

 

 

 

How to determine the Import Declaration Value?

Primary determination method

The process of determining the Import Declaration Value of imported goods is known as “Customs Valuation.” In most cases, when an import is based on an “Import Transaction”※1 between an overseas seller and a buyer in Japan, the primary determination method can be utilized.

※1:An “Import transaction” refers to a transaction where a buyer in Japan engages in a sales transaction with an overseas seller for the purpose of shipping goods to Japan, and the goods subsequently arrive in Japan.

 

Under the primary determination method, the Customs value of the imported goods is determined as the transaction price paid by the buyer (CIF basis).

Customs Duty is calculated by multiplying the Customs Value (Transaction Value) by the Duty Rate, which varies depending on the HS code of the goods.

Consumption Tax, on the other hand, is calculated by multiplying the Customs Value plus Customs Duty by the Consumption Tax rate (currently 10%).

Exceptional determination method (e.g. when to use ACP)

In cases where a non-resident company imports goods into Japan without engaging in a sales transaction, the primary method cannot be utilized. Simply using an Invoice Value is not appropriate.

To calculate the Customs Value in such situations, it is necessary to apply the Exceptional Determination Method.

Within the exceptional determination method, several methods can be considered:

  • Transaction Value of Identical or Similar Goods Method: If you have previously imported goods that possess identical or similar conditions to the goods in question, the transaction value of those goods can be used.
  • Domestic Selling Price Method (Deductive Method): If you can identify the sales price (can be an estimated sales price), the domestic selling price method can be employed.
  • Cost of Production Method (Cost plus Method): If the exporter is a manufacturer and can provide production costs, the production cost method may be applicable.

If none of the above methods are suitable, “Other methods” are utilized as a flexible determination method, taking into account the calculation methods mentioned earlier.

In the practical scene, most of the cases we use this “Other methods” which is a determination method in a flexible way through considering the previously mentioned calculation methods.

 

Avoiding Customs Valuation Problems

In recent times, there have been numerous instances of trouble arising from incorrect Customs Value settings.

In the worst-case scenario, goods may fail to clear customs, resulting in significant detention fees and eventual return shipment.

At ACP Japan, we specialize in establishing appropriate Customs Values. We can assist in conducting consultations with Japan Customs on behalf of our clients, effectively avoiding any potential issues down the line.

For Amazon’s FBA business, there is a recommended calculation formula for the declaration value. If you would like to learn more about it, please don’t hesitate to contact us!

 

 

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

 

Contact us

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

 

Guidance by Amazon

According to the seller central website in Amazon, there is guidance by Amazon that a non-resident entity needs to appoint an ACP or IOR. You may check on this link:

Non-resident requirements

A Fulfillment by Amazon (FBA) seller who lives outside of Japan (non-residents) and would like to import goods into an Amazon Japan fulfillment center for storage and order fulfillment must first designate an Import of Record (IOR) and /or Attorney for Customs Procedure (ACP). This must be accomplished in advance of any importations. In general, any person who is a resident of Japan can be appointed as an IOR and/or ACP. Neither Amazon nor any of its entities in Japan may act as the IOR/ACP on the customs declaration, only the FBA seller or their designated IOR/ACP.

Amazon, Seller Central, Japan Tax and Regulatory Considerations

Also, you can check the document developed by Amazon “Understand ACP and IOR guidance”.

Understand ACP and IOR

If you do not have a Japanese entity to act as the importer of record, it is mandatory that you appoint an Attorney for Customs Procedure (ACP). Overseas Sellers, as non-resident importers, can generally rely on a program called ACP to help bring their inventory into Japan. An ACP is a resident Japanese entity who registers with Japan Customs as your agent to help with entries and communications. Please note ACP does not fully take over the whole responsibility of an importer. You must ensure that your goods comply with the local laws and regulations as a part of your responsibility.

Amazon, Understand ACP and IOR guidance

Recently, Amazon issued another guidance regarding the Understanding of Attorney for Customs Procedures (ACP) in accordance with the new Japan Customs Regulations that have been effective since October 2023.

Understanding of Attorney for Customs Procedures (ACP)

Understand ACP/CPA
To import your FBA shipment, you may need an ACP (Attorney for Customs Procedures, also called Customs Procedure Agent or CPA; hereinafter ‘CPA’) to support the customs clearance
procedures for your goods. The following materials on the Japan Customs website explains in what situations you need a CPA.
https://www.customs.go.jp/shiryo/jirei.pdf

If you are required to use a CPA, Overseas FBA sellers will be filing import declarations under the seller’s name while using a CPA to help bring their inventory into Japan. A CPA is a resident Japanese entity who registers with Japan Customs as your agent to help with customs declarations and communications. Please note CPA does not fully take over the whole
responsibility of an importer. You must ensure that your goods comply with the local laws and regulations as a part of your responsibility.

Please note that the customs territory of Japan is divided into regional areas that do not share information regarding CPA registration. This means you can only rely on your CPA in the region(s) where the application is received. You have to appoint a CPA in each region if necessary. Once you find out the destination Fulfillment Centre (FC) for your goods, please ensure that your CPA is registered in all required regions. For details, you should consult with the relevant customs office.

Are certain product categories limited to Japanese-resident as Importer instead of an ACP/CPA?
There are certain products that are subject to notification, certification, or registration requirements that must be met by a resident Japanese entity who is also responsible for ensuring
the imported goods comply with local laws and regulations. Because these requirements can only be met by a Japanese entity, a non-resident IOR cannot meet them. You are responsible for determining whether or not your goods require a notification, certification, or registration. Japan Customs website has provided an outline of relevant laws and ordinances as a guide but you should also consult with your customs broker or legal advisor. Additionally, all imported products must meet Japanese regulations and product labeling obligations.

For more information, please refer to the Japan Customs’ website: http://www.customs.go.jp/
For more information on the 2023 Japan Customs Act Amendment, please refer to the Japan
Customs’ website:
[JP] https://www.customs.go.jp/shiryo/leaflet_jimukanrinin.pdf
[EN] https://www.customs.go.jp/shiryo/leaflet_jimukanrinin_e.pdf
[CN] https://www.customs.go.jp/shiryo/leaflet_jimukanrinin_cn.pdf
[KR] https://www.customs.go.jp/shiryo/leaflet_jimukanrinin_kr.pdf

Import Permit Document and Alert on IOR Service

The Import Permit Document holds significant importance in import clearance procedures. It serves as evidence for the deduction of Japan Consumption Tax (JCT). When filing periodical JCT returns, this document is necessary to claim deductions or refunds for the amount paid during import. It is crucial to ensure that the Import Permit accurately reflects the information of the Importer of Record (IOR) as it directly impacts the eligibility for JCT deduction.

Non-resident entities utilizing the services of an Attorney for Customs Procedures (ACP) will have their names clearly stated on the Import Permit as IOR, allowing them to successfully claim JCT deductions.

 

Alert: Importer (IOR) Service Provider Not in Compliance with Customs Laws

Attention must be given to cases where IOR service providers or forwarders act as the IOR but MASK (ERASE) their information on the Import Permit Document. This raises concerns about their compliance with Japan Customs Law, such as Customs Valuation. It is important to be cautious when encountering such situations as they may indicate underlying issues.

Importers are responsible for paying penalties, such as additional taxes (penalty), when there is a shortfall in the tax amount owed. It is the importer’s obligation to fulfill their tax payment requirements. However, it should be noted that IOR service providers may not be cooperative in the event of a customs post clearance audit.

Unfortunately, we actually observe that some non-resident entities suffer from the 10% import consumption tax is not deductible (refundable), and they were penalized by the customs post clearance audit. In the end they decided to use ACP, not IOR service provider.

While not all IOR service providers are non-compliant, it is observed that certain providers engage in inappropriate practices. Opting for these providers based on cost-saving measures may result in the inability to deduct or refund 10% JCT, leading to hidden costs and detrimental business outcomes.

As a reputable Customs professional, SK Advisory strictly adheres to Japan Customs Law and confidently provides clients with the Import Permit Document. We are listed as the ACP, while clients are appropriately identified as the IOR on the document.

 

 

Import Permit Document Sample

Upon completion of import clearance procedures, Japan Customs issues an Import Permit document. 

Please refer to the sample Import Permit document below:

Japan Consumption Tax (JCT) is set at a fixed rate of 10%. On the other hand, the tariff rate for Customs Duty varies depending on the HS Code assigned to the imported goods. To verify the applicable tariff rate, you can refer to the Japan Customs Tariff Schedule on their official website here:  Japan Customs Tariff Scheudle

 

 

 

Benefits of Using ACP

For non-resident entities, choosing ACP is strongly recommended. We ensure full compliance with the Japan Customs Law and offers the best solution for correct JCT deduction/refund.

For more information on JCT, please visit the JCT section on our website: Consumption Tax

 

Japanese Customs System Reform: Clarification of Importer Definitions

Starting October 1, 2023, Japanese Customs has instituted a pivotal reform aimed at addressing the issue of foreign sellers improperly designating third parties (such as forwarders or customs agents) as importers.

This revision necessitates foreign corporations to utilize an Attorney for Customs Procedures (ACP) to assume the role of Importer of Record (IOR) directly in many cases. The practice of merely nominally appointing another entity as the importer is no longer feasible.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

 

Revisions Effective October 1, 2023:

Definition of the Importer

  • Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act.    ….. This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
  • In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

     In case of a cargo imported:
     – under lease contracts, a person who rents and uses the cargo.
     – for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
     – for processing or repairing, a person who processes or repairs the cargo.
     – for disposal, a person who disposes the cargo.

 

For additional information, please refer to the following resources:

 

 

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. For a detailed list of our clientele, please visit our “Experiences” section. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

Japan Qualified Invoice System and Compliance JCT (Japan Consumption Tax)

Recently, many companies have been registering as Qualified Invoice Issuers for Japanese Consumption Tax (JCT) due to the new invoice system introduced in October 2023. This new system is similar to the EU’s VAT invoice system.

After October 2023, your Japanese customer can’t claim input JCT tax credits unless the sellers(suppliers) issue a qualified invoice that is written a JCT number. To issue a qualified invoice, sellers(suppliers) need to be a taxable entity and get a JCT number.

Before October 2023:

Any customer (Company-B) who paid for goods or services could deduct input JCT regardless of whether the seller (Company-A) was registered for JCT. There was no requirement to verify the tax status of the seller.

After October 2023:

Any customer (Company-B) can only deduct input JCT if Company-A, the seller, is registered and can provide a qualified invoice with a JCT registration number. If Company-A cannot issue such an invoice, Company-B may choose not to continue purchases from them.

If Company-A sells only to consumers and not businesses, it may not need to issue qualified invoices since consumers typically do not claim JCT tax returns.

Once Company-A obtains a JCT invoice registration number, it becomes a taxable entity required to file JCT returns regularly.

For non-resident entities (Company-A) importing and selling in Japan, the standard procedure involves three steps:

  1. Pay import JCT to customs: 10% of the import customs value.
  2. Collect JCT from customers in Japan: 10% of the sales price.
  3. File a JCT tax return and pay the net JCT to the tax office.

If Company-A paid the import JCT as the importer using an Attorney for Customs Procedures (ACP), they need only pay the net amount of sales JCT minus import JCT.

If Company-A paid the import JCT but was not the importer, they must pay all the collected sales JCT without deducting the import JCT.

Therefore, using an ACP to act as the Importer of Record (IOR) is crucial for managing JCT deductions and refunds. If another company acts as the IOR, you cannot deduct the import JCT, resulting in significant costs.

We strongly recommend using our ACP services to ensure you can act as IOR, optimizing your JCT handling. Our team has extensive experience helping clients become importers and successfully manage their JCT responsibilities. You can rely on our expertise to navigate these complexities.

 

Contact us

 

 

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

ACP’s Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

 

 

Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

Japan Qualified Invoice System and Compliance JCT (Japan Consumption Tax)

Recently, many companies have been registering as Qualified Invoice Issuers for Japanese Consumption Tax (JCT) due to the new invoice system introduced in October 2023. This new system is similar to the EU’s VAT invoice system.

After October 2023, your Japanese customer can’t claim input JCT tax credits unless the sellers(suppliers) issue a qualified invoice that is written a JCT number. To issue a qualified invoice, sellers(suppliers) need to be a taxable entity and get a JCT number.

Before October 2023:

Any customer (Company-B) who paid for goods or services could deduct input JCT regardless of whether the seller (Company-A) was registered for JCT. There was no requirement to verify the tax status of the seller.

After October 2023:

Any customer (Company-B) can only deduct input JCT if Company-A, the seller, is registered and can provide a qualified invoice with a JCT registration number. If Company-A cannot issue such an invoice, Company-B may choose not to continue purchases from them.

If Company-A sells only to consumers and not businesses, it may not need to issue qualified invoices since consumers typically do not claim JCT tax returns.

Once Company-A obtains a JCT invoice registration number, it becomes a taxable entity required to file JCT returns regularly.

For non-resident entities (Company-A) importing and selling in Japan, the standard procedure involves three steps:

  1. Pay import JCT to customs: 10% of the import customs value.
  2. Collect JCT from customers in Japan: 10% of the sales price.
  3. File a JCT tax return and pay the net JCT to the tax office.

If Company-A paid the import JCT as the importer using an Attorney for Customs Procedures (ACP), they need only pay the net amount of sales JCT minus import JCT.

If Company-A paid the import JCT but was not the importer, they must pay all the collected sales JCT without deducting the import JCT.

Therefore, using an ACP to act as the Importer of Record (IOR) is crucial for managing JCT deductions and refunds. If another company acts as the IOR, you cannot deduct the import JCT, resulting in significant costs.

We strongly recommend using our ACP services to ensure you can act as IOR, optimizing your JCT handling. Our team has extensive experience helping clients become importers and successfully manage their JCT responsibilities. You can rely on our expertise to navigate these complexities.

 

 

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

Japanese Customs System Reform: Clarification of Importer Definitions

Starting October 1, 2023, Japanese Customs has instituted a pivotal reform aimed at addressing the issue of foreign sellers improperly designating third parties (such as forwarders or customs agents) as importers.

This revision necessitates foreign corporations to utilize an Attorney for Customs Procedures (ACP) to assume the role of Importer of Record (IOR) directly in many cases. The practice of merely nominally appointing another entity as the importer is no longer feasible.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

 

Revisions Effective October 1, 2023:

Definition of the Importer

  • Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act.    ….. This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
  • In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

     In case of a cargo imported:
     – under lease contracts, a person who rents and uses the cargo.
     – for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
     – for processing or repairing, a person who processes or repairs the cargo.
     – for disposal, a person who disposes the cargo.

 

For additional information, please refer to the following resources:

 

 

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

 

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

ACP’s Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

 

 

ACP Import under VMI – Vendor Managed Inventory

We have been receiving an increasing number of requests from new customers (parts/materials manufacturers outside Japan) in the automotive and machinery parts industries.

The background of the increase in needs is that the Japanese end-customer, a manufacturer of finished goods, has requested to switch to VMI (Vendor Managed Inventory), which means that the inventory management is done by the vendor (supplier) side.

Before using the VMI scheme, when trading between an overseas parts/materials manufacturer (seller) and a Japanese finished goods manufacturer (buyer), the buyer would act as the importer and import the goods, and the buyer would manage the goods as its own inventory.

After switching to the VMI scheme, the parts/materials manufacturer (seller) outside Japan imports the goods themselves, manage the inventory near the customer in Japan, and deliver the goods to the buyer’s factory just in time (JIT) when the finished goods manufacturer (buyer) wants the goods.

In this way, the buyer avoids the cumbersome of managing inventory but still can have the seller deliver the required quantity at the required time. Furthermore, since the buyer is not the importer, it is relieved of various responsibilities required of importers (for example, it is no longer necessary to keep import-related documents and books, or to respond to customs post-clearance audits as required by law).

On the other hand, the foreign parts/materials manufacturer (seller) has to use an Attorney for Customs Procedures (ACP) for the seller to act as the importer. In addition, as a response to national taxation, since sales in Japan (taxable sales under the Consumption Tax Law) will occur, it is necessary to appoint a Tax Representative (of JCT – Japan Consumption Tax) to register as a taxable business operator for consumption tax and to perform periodic tax filing duties.

Considering the invoice system for consumption tax, the use of a tax representative is also essential for B2B transactions, as the seller must become a registered business in order to be able to deduct purchases when filing consumption tax returns on the buyer’s side.

 

Switching to the VMI method (example)

Before introducing of VMI program

Foreign parts/materials manufacturer (seller)   → Sales →    Japanese finished goods manufacturer (buyer)

  • Inventory control on the Japanese side: Buyer
  • Importer: Buyer
  • Seller’s sales subject to consumption tax in Japan: No

 

After introducing of VMI program

Foreign parts/materials manufacturer (Seller)   → Sales →   Japanese finished goods manufacturer (Buyer)

  • Inventory control in Japan: Seller
  • Importer: Seller   ACP – Attorney for Customs Procedure is required (for Customs purpose)
  • Sales subject to consumption tax in Japan on the seller’s side: Yes    JCT Tax Representative is required (for National Taxation purpose)

 

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

 

Three Steps to Initiate Shipments Under the ACP Program: :

  1. Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
  2. Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
  3. Initiation of First Shipment, Import/Export

 

 

 

Japanese Customs System Reform: Clarification of Importer Definitions

Starting October 1, 2023, Japanese Customs has instituted a pivotal reform aimed at addressing the issue of foreign sellers improperly designating third parties (such as forwarders or customs agents) as importers.

This revision necessitates foreign corporations to utilize an Attorney for Customs Procedures (ACP) to assume the role of Importer of Record (IOR) directly in many cases. The practice of merely nominally appointing another entity as the importer is no longer feasible.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

 

Revisions Effective October 1, 2023:

Definition of the Importer

  • Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act.    ….. This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
  • In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

     In case of a cargo imported:
     – under lease contracts, a person who rents and uses the cargo.
     – for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
     – for processing or repairing, a person who processes or repairs the cargo.
     – for disposal, a person who disposes the cargo.

 

For additional information, please refer to the following resources:

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

 

Japan Qualified Invoice System and Compliance JCT (Japan Consumption Tax)

Recently, many companies have been registering as Qualified Invoice Issuers for Japanese Consumption Tax (JCT) due to the new invoice system introduced in October 2023. This new system is similar to the EU’s VAT invoice system.

After October 2023, your Japanese customer can’t claim input JCT tax credits unless the sellers(suppliers) issue a qualified invoice that is written a JCT number. To issue a qualified invoice, sellers(suppliers) need to be a taxable entity and get a JCT number.

Before October 2023:

Any customer (Company-B) who paid for goods or services could deduct input JCT regardless of whether the seller (Company-A) was registered for JCT. There was no requirement to verify the tax status of the seller.

After October 2023:

Any customer (Company-B) can only deduct input JCT if Company-A, the seller, is registered and can provide a qualified invoice with a JCT registration number. If Company-A cannot issue such an invoice, Company-B may choose not to continue purchases from them.

If Company-A sells only to consumers and not businesses, it may not need to issue qualified invoices since consumers typically do not claim JCT tax returns.

Once Company-A obtains a JCT invoice registration number, it becomes a taxable entity required to file JCT returns regularly.

For non-resident entities (Company-A) importing and selling in Japan, the standard procedure involves three steps:

  1. Pay import JCT to customs: 10% of the import customs value.
  2. Collect JCT from customers in Japan: 10% of the sales price.
  3. File a JCT tax return and pay the net JCT to the tax office.

If Company-A paid the import JCT as the importer using an Attorney for Customs Procedures (ACP), they need only pay the net amount of sales JCT minus import JCT.

If Company-A paid the import JCT but was not the importer, they must pay all the collected sales JCT without deducting the import JCT.

Therefore, using an ACP to act as the Importer of Record (IOR) is crucial for managing JCT deductions and refunds. If another company acts as the IOR, you cannot deduct the import JCT, resulting in significant costs.

We strongly recommend using our ACP services to ensure you can act as IOR, optimizing your JCT handling. Our team has extensive experience helping clients become importers and successfully manage their JCT responsibilities. You can rely on our expertise to navigate these complexities.

 

Contact us

 

 

—–

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

ACP’s Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)

 

 

ACP Service – Attorney for Customs Procedure

What is ACP? – Attorney for Customs Procedure

In principle, Japan Customs does not permit a foreign entity to act as the Importer of Record (*IOR).

But the foreign entity can act as a non-resident importer (IOR – Importer of Record) if you appoint an ACP (Attorney for Customs Procedure) who can handle the customs procedure on your behalf.

We, ACP japan provide this service as being ACP. On behalf of non-resident clients, we support by ensuring the import customs procedure.

We support many import projects including E-commerce such as Amazon’s FBA (Fulfillment By Amazon) program and Rakuten for the international sellers.

Please feel free to contact us!

 

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

  • Consultation with the Japan Customs Office for successful ACP registration. 
  • Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
  • Assistance in preparing the necessary documentation for import clearance.
  • Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
  • Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
  • Documents keeping, required under article 95 – Japan Customs Law
  • Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

How we proceed the works

Step.1) Please send us information through the contact form, regarding:

    • The website (URL link) or catalogue of the exact goods planning to import to Japan.
    • Approximate volume, varieties, and shipping frequency of the goods to import to Japan.

Step.2) ACP Japan to submit quotation and scope of works, for a specific client.

Step.3) Once the client agrees with the quotation, we’ll proceed signing of a service agreement between us.

Step.4) Then, we’ll start preparation of documentation regarding ACP application. The documents we need to prepare are, for instance, power of attorney, a certificate of company registry, the calculation formula of the customs valuation.

Step.5) Once set of documentations prepared, we will start communication with Japan Customs Office to obtain an approval of ACP.

 

 

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.

 

 

 

Why choose us?

  • Customs and International Trade Professionals – Our CEO, Mr. Sawada, is a Certified Customs Specialist in Japan. With years of experience providing services in the Trade & Customs field, his leadership at KPMG and the establishment of his own company, SK Advisory, ensures our commitment to excellence and high-quality service.
  • Full Adherence to Japanese Customs Law – Our top priority is to maintain full compliance with Japanese Customs Law and safely import / export our clients’ goods into / from Japan. We meticulously manage all import compliance aspects, including Japan Importer of Record (IOR) matter, HS code classification and the correct Customs Valuation of goods entering Japan. We support to complete all the necessary shipping documents, such as Invoice, Packing List and BL, on behald of non-resident / foreign Japan IOR.
  • Communication in English, Chinese, and Japanese – Our team, with extensive international experience, excels in communication in English, including facilitating English-language meetings, and has earned considerable trust from clients. We also have staff capable of communicating in Chinese, making us equipped to handle Chinese-language support as well. Naturally, as a Japan-based team, we’re totally fluent in Japanese, ensuring seamless communication across these three key languages.
  • Reputable and Reliable Partner -The growing demand for our Attorney for Customs Procedures (ACP) services is testament to our quality. We proudly serve clients globally, registering over 50 ACP customers annually. Our consistent track record underscores our reliability and credibility. Our unwavering commitment ensures all our clients successfully acquire Japan IOR status and import goods seamlessly into Japan.
  • Handling Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
  • Recognized ACP Service Provider on Amazon SPN (Service Provider Network) – We are a certified ACP service provider within Amazon’s Service Provider Network (SPN), listed under the Trade Compliance category. Many international Amazon Sellers have successfully become Japan Importers of Record (IOR) through our ACP services.

     

 

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 100 companies. We are committed to delivering industry-leading results with our expertise.

 

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

  • Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
  • Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
  • Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

 

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

  • Prepare the necessary documentation between us
  • Start pre-consultation with Japan Customs Office and proceed initial review
  • Submit paper-based set of application documents to Japan Customs Office for final review

 

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

 

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.

 

Which regions in Japan are we covering?

Any region in Japan, we can handle.

 

What is difference between ACP and IOR?

ACP is not the Importer. ACP enables non-resident entities to become IOR (Importer of Record).

 

Japan Qualified Invoice System and Compliance JCT (Japan Consumption Tax)

Recently, many companies have been registering as Qualified Invoice Issuers for Japanese Consumption Tax (JCT) due to the new invoice system introduced in October 2023. This new system is similar to the EU’s VAT invoice system.

After October 2023, your Japanese customer can’t claim input JCT tax credits unless the sellers(suppliers) issue a qualified invoice that is written a JCT number. To issue a qualified invoice, sellers(suppliers) need to be a taxable entity and get a JCT number.

Before October 2023:

Any customer (Company-B) who paid for goods or services could deduct input JCT regardless of whether the seller (Company-A) was registered for JCT. There was no requirement to verify the tax status of the seller.

After October 2023:

Any customer (Company-B) can only deduct input JCT if Company-A, the seller, is registered and can provide a qualified invoice with a JCT registration number. If Company-A cannot issue such an invoice, Company-B may choose not to continue purchases from them.

If Company-A sells only to consumers and not businesses, it may not need to issue qualified invoices since consumers typically do not claim JCT tax returns.

 

Once Company-A obtains a JCT invoice registration number, it becomes a taxable entity required to file JCT returns regularly.

For non-resident entities (Company-A) importing and selling in Japan, the standard procedure involves three steps:

  1. Pay import JCT to customs: 10% of the import customs value.
  2. Collect JCT from customers in Japan: 10% of the sales price.
  3. File a JCT tax return and pay the net JCT to the tax office.

If Company-A paid the import JCT as the importer using an Attorney for Customs Procedures (ACP), they need only pay the net amount of sales JCT minus import JCT.

If Company-A paid the import JCT but was not the importer, they must pay all the collected sales JCT without deducting the import JCT.

Therefore, using an ACP to act as the Importer of Record (IOR) is crucial for managing JCT deductions and refunds. If another company acts as the IOR, you cannot deduct the import JCT, resulting in significant costs.

We strongly recommend using our ACP services to ensure you can act as IOR, optimizing your JCT handling. Our team has extensive experience helping clients become importers and successfully manage their JCT responsibilities. You can rely on our expertise to navigate these complexities.

 

 

 

 

Our Tax Representative service (optional)

We, ACP Japan provide one-stop services by supporting as ACP and Tax Representative for Japanese Consumption Tax (JCT) issues. We provide following services by collaborating with a Tax Accountant to ensure the all the service to be served in accordance with Tax Laws.

  • Support notification to become a taxable company for Japan Consumption Tax.
  • Support notification of tax representative appointment.
  • Support preparation/submission of the JCT return.
  • Communication with stakeholders including National Tax Office.
  • Cash handling support (e.g. Payment of the JCT to National Tax Office)

  Please see, the details of the article for Japanese Consumption Tax (VAT) issues.

 

 

Japanese Customs System Reform: Clarification of Importer Definitions

Starting October 1, 2023, Japanese Customs has instituted a pivotal reform aimed at addressing the issue of foreign sellers improperly designating third parties (such as forwarders or customs agents) as importers.

This revision necessitates foreign corporations to utilize an Attorney for Customs Procedures (ACP) to assume the role of Importer of Record (IOR) directly in many cases. The practice of merely nominally appointing another entity as the importer is no longer feasible.

Notably, foreign corporations that act as importers themselves, through the engagement of ACP, are eligible for Japan Consumption Tax (JCT) benefits. (link: Consumption Tax Treatment and Benefits of Using ACP).

As a dedicated ACP firm, we ensure compliance with the law to facilitate correct import procedures, allowing you to trust us with your importation requirements confidently. We are eager to engage in further discussions with you.

 

Revisions Effective October 1, 2023:

Definition of the Importer

  • Regarding a cargo imported under import transaction, an importer is equivalent to “a person who imports a cargo” defined in Article 6-1 (1), General Notification of the Customs Act.    ….. This means, the Consignee, etc., in the case of imports conducted through normal transactions between an overseas seller and a Japanese buyer
  • In the cases other than above, an importer is a person who has a right to disposition of the import cargo at the time of import declaration. If there is another person who acts on the purpose of the import*, that person is also included :

     In case of a cargo imported:
     – under lease contracts, a person who rents and uses the cargo.
     – for consignment sales, a person who sells the cargo in the name of himself/herself (consignee) by accepting the commission.
     – for processing or repairing, a person who processes or repairs the cargo.
     – for disposal, a person who disposes the cargo.

 

For additional information, please refer to the following resources:

 

 

 

[Our Service]

Our ACP Service for Importer of Record (IOR)

Our ACP Service for Exporter of Record (EOR)

 

[Knowledge Pages]

What is ACP? – Attorney for Customs Procedures

Steps of using ACP, how foreign entity can import into Japan by ACP

What is IOR? – Importer of Record

Amazon won’t become an IOR

Customs Valuation System in Japan

Customs Valuation When You Import By ACP

Consumption Tax in Japan

IOR and ACP

IOR Service

ACP’s Limitation on Handling by ACP in Japan – Our System Enables Us to Handle Regulated Items

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

Urgent Compliance Alert for E-Commerce Sellers: Avoid Penalties with Japan’s New Import Regulations – Act Now!

October 2023: Introduction of Two New Systems in Japan – (1) Switching from IOR Provider to ACP & (2) QIS: Japan Consumption Tax’s Qualified Invoice System

ACP Japan Became Amazon’s SPN Provider as Qualified ACP Service Provider

Taxes on Imports: Customs Duty and Japan Consumption Tax (JCT)

Import Permit Document and Alert on IOR Service

New Japan Qualified Invoice System and import JCT (Japan Consumption Tax)