Tag Archives: Import

IOR

IOR and ACP – Import to Japan

As we receive questions often what the difference between ACP and IOR, prepared this page to help you understand ACP and IOR.

What is IOR – Importer of Record

When you send goods to Japan, for import, there must be an Importer of Record (IOR) in place.

The importer, in principle, shall be a Japanese resident person/entity who’s responsible for taxes, customs duties as well as import related regulations.

Unlike other regions, Japan Customs does not permit a foreign entity to act as IOR.

But if the foreign entity apponts ACP (Attorney for Customs Procedure), the entity can be Non-Resident Importer (IOR) then you can import by yourself.

When need an ACP – Attorney for Customs Procedure

If you (non-resident shipper) can’t find an anyone/entity in Japan that can act as IOR, you’ll need to act as a Non-Resident Importer. But, in this case you must appoint an Attorney for Customs Procedure.

In other words, you can import by yourself by appointing ACP, even if you don’t find any entity can be the IOR in Japan.

If you are looking for an entity as being IOR, ACP can be a solution! We provide the service as being ACP, on behalf of a non-resident clients we support by ensuring the import customs procedure.

 

Reform in the Japanese Customs System (Mandatory Use of ACP; IOR services Prohibited)

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. Foreign entities can no longer utilize a Japanese company as their IOR, or Importer of Record. As a result, sellers are now required to act as the IOR (Importer of Record) themselves and must use the ACP (Attorney for Customs Procedures) service, a mandatory stipulation.

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

Japan Customs Notice – Available in English, Chinese, Korean, and Japanese.

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

 

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.

 

 

ACP’s advantage

One of the advantages of using ACP over the IOR service provider is related to Consumption Tax issues. You may visit our site: 2 – Consumption Tax , and please take a look at the Taxable Entity. If your entity is a Taxable Entity, it would be recommendable to use ACP rather IOR service provider. Because your entity can deduct the import consumption tax when you file the tax return. Whereas, if your entity is a Tax-exempt Entity, using ACP or IOR service provider does not have such differences. 

 

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

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.
  • Documents keeping, required under article 95 – Japan Customs Law

How the Japanese New Invoice System affects?  – Advantage of using ACP –

Recently, many companies register JCT (Japanese Consumption Tax) because the new invoice system for JCT will start in October 2023. The concept of the new invoice system is very similar to the EU’s VAT invoice system.

Your Japanese customer can’t claim input 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.

Since the seller becomes a taxable entity, the seller is obligated to file JCT tax returns on a regular basis.

For the case of a non-resident entity, when you import and sell to customers in Japan
(1) Pay import JCT to a customs office, 10% of the import customs value when you import
(2) Collect JCT from a customer in Japan, 10% of the sales price when you sell
(3) Submit JCT tax return to a tax office periodically
   (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 import consumption tax at the time of tax filing. 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 import consumption tax. Therefore, you have to pay all the amount of (2) to a tax office.

On the other hand, if you import with ACP, means that you became an IMPORTER thus you can deduct the import consumption tax, when you do JCT tax return. Therefore, you only need to pay the difference amount (2) – (1) to a tax office.

This is one of the significant advantages to use ACP service, not IOR service.

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

 

 

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.

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.
  • 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.
  • 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.

     

 

You can also check our YouTube video, explaining what ACP is.

You can also check our YouTube video, explaining what IOR is.

 

 

 

 

—

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

 

 

ACP

ACP Qualification – Import to Japan

Any individuals or companies can be entitled to be an ACP under the Japan Customs Law. However, we highly recommend to appointing to the ACP service company who has capability to manage trade and customs issues under the Japan Customs Law.

Especially, please select an ACP who is familiar with Customs issues including Customs Valuation. Because, recently Japan Customs has been becoming strict on the value setting for Non-resident’s import.

In fact, recently, we observe many troubles due to the inappropriate setting of the Customs Value. In the worst case but often, the goods can not pass the clearance. In the end, Importers paid huge amount of detention fees and finally shipped back.

We,  as qualified Customs professionals, are supporting so as to appropriately import the goods to Japan.

 

Reform in the Japanese Customs System (Mandatory Use of ACP; IOR services Prohibited)

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. Foreign entities can no longer utilize a Japanese company as their IOR, or Importer of Record. As a result, sellers are now required to act as the IOR (Importer of Record) themselves and must use the ACP (Attorney for Customs Procedures) service, a mandatory stipulation.

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

Japan Customs Notice – Available in English, Chinese, Korean, and Japanese.

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)

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.
  • Documents keeping, required under article 95 – Japan Customs Law

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.

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.
  • 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.
  • 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.

     

 

 

How the Japanese New Invoice System affects?  – Advantage of using ACP –

Recently, many companies register JCT (Japanese Consumption Tax) because the new invoice system for JCT will start in October 2023. The concept of the new invoice system is very similar to the EU’s VAT invoice system.

Your Japanese customer can’t claim input 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.

Since the seller becomes a taxable entity, the seller is obligated to file JCT tax returns on a regular basis.

For the case of a non-resident entity, when you import and sell to customers in Japan
(1) Pay import JCT to a customs office, 10% of the import customs value when you import
(2) Collect JCT from a customer in Japan, 10% of the sales price when you sell
(3) Submit JCT tax return to a tax office periodically
   (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 import consumption tax at the time of tax filing. 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 import consumption tax. Therefore, you have to pay all the amount of (2) to a tax office.

On the other hand, if you import with ACP, means that you became an IMPORTER thus you can deduct the import consumption tax, when you do JCT tax return. Therefore, you only need to pay the difference amount (2) – (1) to a tax office.

This is one of the significant advantages to use ACP service, not IOR service.

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

—

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

ACP

ACP Application – Import to Japan

To officially appoint ACP, the designated application form “C7500” by Japan Customs shall be necessary to submit.

To which Customs Office it shall submit is, depending on the arrival port. If the import goods arrives on Narita or Haneda airport, there are covered by Tokyo Customs, so the application should be submitted to Tokyo Customs.

In addition to the designated application form “C7500”, the following information also need to submit :

  • Power of Attorney
  • Company Registry
  • The calculation method of Customs Valuation   see. NR’s Customs Valuation 
  • Explanatory materials regarding Company profile, Catalog of the import goods, business/logistic flow

When we support, ACP Japan prepares the explanatory materials for the Customs Valuation, pricing of Tax Base.

Please be careful…

Please be careful, in recent Japan Customs has been becoming more strict for ACP’s registration, since there are many cases (problem) are seen in terms of in-appropriate customs valuation setting.

Please carefully to select ACP, it shall be recommended to appoint an ACP, who is familiar with Customs issues especially including Customs Valuation perspective.

 

 

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

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.
  • Documents keeping, required under article 95 – Japan Customs Law

 

Reform in the Japanese Customs System (Mandatory Use of ACP; IOR services Prohibited)

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. Foreign entities can no longer utilize a Japanese company as their IOR, or Importer of Record. As a result, sellers are now required to act as the IOR (Importer of Record) themselves and must use the ACP (Attorney for Customs Procedures) service, a mandatory stipulation.

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

Japan Customs Notice – Available in English, Chinese, Korean, and Japanese.

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

 

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.

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.
  • 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.
  • 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.

     

—

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

 

How the Japanese New Invoice System affects?  – Advantage of using ACP –

Recently, many companies register JCT (Japanese Consumption Tax) because the new invoice system for JCT will start in October 2023. The concept of the new invoice system is very similar to the EU’s VAT invoice system.

Your Japanese customer can’t claim input 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.

Since the seller becomes a taxable entity, the seller is obligated to file JCT tax returns on a regular basis.

For the case of a non-resident entity, when you import and sell to customers in Japan
(1) Pay import JCT to a customs office, 10% of the import customs value when you import
(2) Collect JCT from a customer in Japan, 10% of the sales price when you sell
(3) Submit JCT tax return to a tax office periodically
   (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 import consumption tax at the time of tax filing. 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 import consumption tax. Therefore, you have to pay all the amount of (2) to a tax office.

On the other hand, if you import with ACP, means that you became an IMPORTER thus you can deduct the import consumption tax, when you do JCT tax return. Therefore, you only need to pay the difference amount (2) – (1) to a tax office.

This is one of the significant advantages to use ACP service, not IOR service.

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

 

ACP

ACP’s Limitation – Import to Japan

ACP, is not capable to handle all kinds of goods.

If the goods are subject to specific regulations such as Food Sanitation Act, Act on Pharmaceuticals and Medical Devices, or PSE/PSC it shall not allow to import by appointing ACP.

The said regulations have a requirement for the importers should be a Japanese resident entity. On the other hand, if a non-resident entity uses ACP for their import, it means that the non-resident entity becomes an importer. For that reason, for particular products that are subject to the previously mentioned regulations, it does not allow to import by appointing ACP.

Therefore, we check the eligibility as a first step, to avoid any restrictions for the importing goods.

 

Japanese import related regulations

Let us introduce several websites regarding import related regulations, so that you can understand and follow the required compliance before shipping goods to Japan.

 

 

Reform in the Japanese Customs System (Mandatory Use of ACP; IOR services Prohibited)

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. Foreign entities can no longer utilize a Japanese company as their IOR, or Importer of Record. As a result, sellers are now required to act as the IOR (Importer of Record) themselves and must use the ACP (Attorney for Customs Procedures) service, a mandatory stipulation.

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

Japan Customs Notice – Available in English, Chinese, Korean, and Japanese.

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

 

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.

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.
  • 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.
  • 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.

     

 

 

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

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.
  • Documents keeping, required under article 95 – Japan Customs Law

—

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

 

How the Japanese New Invoice System affects?  – Advantage of using ACP –

Recently, many companies register JCT (Japanese Consumption Tax) because the new invoice system for JCT will start in October 2023. The concept of the new invoice system is very similar to the EU’s VAT invoice system.

Your Japanese customer can’t claim input 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.

Since the seller becomes a taxable entity, the seller is obligated to file JCT tax returns on a regular basis.

For the case of a non-resident entity, when you import and sell to customers in Japan
(1) Pay import JCT to a customs office, 10% of the import customs value when you import
(2) Collect JCT from a customer in Japan, 10% of the sales price when you sell
(3) Submit JCT tax return to a tax office periodically
   (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 import consumption tax at the time of tax filing. 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 import consumption tax. Therefore, you have to pay all the amount of (2) to a tax office.

On the other hand, if you import with ACP, means that you became an IMPORTER thus you can deduct the import consumption tax, when you do JCT tax return. Therefore, you only need to pay the difference amount (2) – (1) to a tax office.

This is one of the significant advantages to use ACP service, not IOR service.

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

 

Tax

Japan Consumption Tax (JCT)

Consumption Tax

In case a non-resident entity imports by taking advantage of Attorney for Customs Procedure (ACP), the non-resident entity becomes an Importer in Japan. It means that the non-resident entity has to pay (1)Customs Duties and (2)Japanese Consumption Tax (JCT, Japanese VAT), when import.

With regards to the (1) Customs Duties, it is only required for the non-resident entity to make payment only, very simple.

Regarding the (2) Consumption Tax, the non-resident entity has to pay 10% of the value of goods when import. After import, if the non-resident entity sells goods to Customer in Japan, the non-resident entity receives Consumption Tax 10% of sales value from the Customer in Japan.

Tax Liability

In principle, the consumption tax the non-resident entity receives has to be paid to the national tax office. However, if you are a small business with less than 10 million yen in your sales in Japan (namely “taxable sales in the base period”), you may be exempt from the tax obligation.

How the Japanese New Invoice System affects?  – Advantage of using ACP –

Recently, many companies register JCT (Japanese Consumption Tax) because the new invoice system for JCT will start in October 2023. The concept of the new invoice system is very similar to the EU’s VAT invoice system.

Your Japanese customer can’t claim input 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.

Since the seller becomes a taxable entity, the seller is obligated to file JCT tax returns on a regular basis.

For the case of a non-resident entity, when you import and sell to customers in Japan
(1) Pay import JCT to a customs office, 10% of the import customs value when you import
(2) Collect JCT from a customer in Japan, 10% of the sales price when you sell
(3) Submit JCT tax return to a tax office periodically
   (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 import consumption tax at the time of tax filing. 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 import consumption tax. Therefore, you have to pay all the amount of (2) to a tax office.

On the other hand, if you import with ACP, means that you became an IMPORTER thus you can deduct the import consumption tax, when you do JCT tax return. Therefore, you only need to pay the difference amount (2) – (1) to a tax office.

This is one of the significant advantages to use ACP service, not IOR service.

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

 

 

Reform in the Japanese Customs System (Mandatory Use of ACP; IOR services Prohibited)

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. Foreign entities can no longer utilize a Japanese company as their IOR, or Importer of Record. As a result, sellers are now required to act as the IOR (Importer of Record) themselves and must use the ACP (Attorney for Customs Procedures) service, a mandatory stipulation.

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

Japan Customs Notice – Available in English, Chinese, Korean, and Japanese.

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

 

Tax Representative (Tax Agent)

On the other hand, there may be cases where the imported goods stored at inventory warehouse in Japan for a certain period of time after importation. And, the inventory period is long, in which case only the payment of import consumption tax occurs and the cash flow burden is large. In such case, you can submit a “taxable enterprise selection notification” to the tax office to become a taxable enterprise. In this way, you can receive a refund of the import consumption tax paid.

If the non-resident entity has tax liability or the entity selects as to be a taxable enterprise, then the non-resident entity has to appoint of Tax Representative(Tax Agent), apart from ACP.

We can support both ACP and Tax Representative as one stop service.

 

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.

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.
  • 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.
  • 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.

     

 

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

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.
  • Documents keeping, required under article 95 – Japan Customs Law

 

—

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

Customs Valuation

Customs Valuation – Import to Japan – Japan IOR

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 and Consumption Tax, are calculated by multiplying this Customs Value by the tariff rate and consumption tax rate.

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!

 

 

Reform in the Japanese Customs System (Mandatory Use of ACP; IOR services Prohibited)

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. Foreign entities can no longer utilize a Japanese company as their IOR, or Importer of Record. As a result, sellers are now required to act as the IOR (Importer of Record) themselves and must use the ACP (Attorney for Customs Procedures) service, a mandatory stipulation.

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

Japan Customs Notice – Available in English, Chinese, Korean, and Japanese.

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

 

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.

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.
  • 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.
  • 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.

     

 

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

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.
  • Documents keeping, required under article 95 – Japan Customs Law

 

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)

 

How the Japanese New Invoice System affects?  – Advantage of using ACP –

Recently, many companies register JCT (Japanese Consumption Tax) because the new invoice system for JCT will start in October 2023. The concept of the new invoice system is very similar to the EU’s VAT invoice system.

Your Japanese customer can’t claim input 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.

Since the seller becomes a taxable entity, the seller is obligated to file JCT tax returns on a regular basis.

For the case of a non-resident entity, when you import and sell to customers in Japan
(1) Pay import JCT to a customs office, 10% of the import customs value when you import
(2) Collect JCT from a customer in Japan, 10% of the sales price when you sell
(3) Submit JCT tax return to a tax office periodically
   (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 import consumption tax at the time of tax filing. 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 import consumption tax. Therefore, you have to pay all the amount of (2) to a tax office.

On the other hand, if you import with ACP, means that you became an IMPORTER thus you can deduct the import consumption tax, when you do JCT tax return. Therefore, you only need to pay the difference amount (2) – (1) to a tax office.

This is one of the significant advantages to use ACP service, not IOR service.

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

 

—

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