Customs Valuation when you import by ACP

Customs Valuation

Primary determination method

First of all, “Customs Valuation” refers to the method of determining the Import Declaration Value of imported goods.
As a general rule, if the import is made based on the “Import Transaction”※1 between an overseas seller and a buyer in Japan, in many cases we can use the primary determination method.

※1:”Import transaction” is a transaction that a buyer in Japan make a sale transaction with an overseas seller for shipping the goods to Japan, and the goods actually arrive in Japan.

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

What you have to pay as Customs Duty is calculated by multiplying the Customs Value (Transaction Value) by the Duty Rate. The tariff rate varies depending on the HS code of the goods.

What you have to pay as Consumption Tax is calculated by multiplying the Customs Value + Customs Duty by the Consumption Tax rate (currently 10%).

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

On the other hand, if the non-resident company imports goods into Japan without having a sales transaction, you can’t use the primary method. You can’t simply use an Invoice Value.

It is required to apply the Exceptional Determination Method to calculate the Customs Value.

Regardless of whether an ACP or IOR service provider you use, if there is no buy/sell transaction, you should calculate the customs value based on the Exceptional determination method.

In the exceptional determination method, there are several methods you can consider using.

If you already imported goods that meets the identical or similar conditions of the import goods, you can use the “transaction value of identical or similar goods method”.

If you are able to identify the sales price and costs incurred in Japan, you can use the “domestic selling price method”.

If the exporter is a manufacturer and able to provide production costs, it may be possible to use the production cost method.

If any of the methods cannot be applied, lastly, we use “Other methods”.

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

Avoid any trouble caused by Customs Valuation issues

Recently, we observed many troubles due to the inappropriate setting of the Customs Value.

In the worst-case but often, the goods cannot pass the clearance. In the end, consignee paid a huge amounts of detention fees and finally shipped back.

We SK Advisory can help set an appropriate Customs Value. We can support having consultations with Japan Customs on behalf of clients, so as to avoid any problems occurring later on.

For Amazon’s FBA business, there is a recommended calculation formula of the declaration value. If you’d like to know about it, please feel free to contact us!

YouTube Video – Customs Valuation in Japan – How to calculate import declaration value, how much for import taxes

 

References


Japan Customs – Customs Valuation System in Japan


 

Amazon, in seller central website released the guideline of Customs Valuation.

Main Trade Procedures and Customs Valuation (English)

Main Trade Procedures and Customs Valuation (Chinese)

Main Trade Procedures and Customs Valuation (Japanese)

 


We’re a reliable ACP service provider for Amazon FBA’s seller

In recent, we’ve been supporting many import projects of goods related to the Amazon-FBA program. If you are looking for a reliable ACP service provider, please let us know.  

Guidance by Amazon

According to the seller central website in Amazon, there is a guidance by Amazon that non-resident entity needs to appoint an ACP or IOR. You may check on this “Non-resident requirements”. Also, you can check the document developed by Amazon “Understand ACP and IOR guidance”.   —–

 

Our ACP Service (Attorney for Customs Procedures)

Contact us

 

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[Our Service]

Our ACP Service

 

[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

ACP’s Limitation

ACP’s Qualification

ACP’s registration

 

[Recent Updates]

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

IOR Service

 

Import into Japan by ACP – Atorney for Customs Procedure